Thank you very much. Good morning and good afternoon, ladies and gentlemen. On behalf of RUSAL, I would like to welcome you to our first quarter 2013 results conference call. Please be aware, some of my colleagues are on remote access, so the connection might be not as good as usual. I would like to introduce our First Deputy CEO, Vladislav Solovyov.
Thank you, Oleg. Good morning, good afternoon. Let me start with the first quarter 2013 highlights. I would like to start, our top line improved on the back of better realized aluminum price and higher premiums despite continued production cuts. If you look at the aluminum productions, decreased by 4% to 1,007,000 tons in the first quarter of 2013 compared to the same period last year, following the launch of the capacity curtailment program, which we announced last quarter. Record high realized premium of $264 per ton was achieved in the first quarter, an increase of 6% of the previous quarter. We see the continuous rising in the premium, and we think this trend should be the same. As for the value-added products output, it increased to 40% of the total production volumes versus 37% in the first quarter last year.
Our margins improved in line with the industry best players despite the appreciation of the local currency and cost of sales increased by 3% versus the previous quarter following a 2% ruble strengthening. EBITDA improved to $246 million, an 11% increase to the previous quarter, with a margin of 9%. The EBITDA margin of the aluminum segment equivalent to 14%. First debt repayments were made from the cash flow received according to the Norilsk Nickel shareholders agreement. Namely, $620 million were repaid to Sberbank in April 2013 utilizing the proceeds from the Norilsk Nickel share sale. Also, early debt repayment of around $470 million were made to international and Russian lenders in the first quarter this year. Speaking of the aluminum market, we maintain our 6% consumption growth outlook for 2015.
We expected strong demand growth in the U.S. and Asia ex- China due to robust consumption by aerospace, automotive, and electrical sectors. While the European demand forecast is changed from -2% to -1%. 1 million to 1.2 million tons of aluminum capacity cuts have been made in China year to date, while the new projects commissioning is slowing down. High production volumes still put additional pressure on declining Shanghai Futures Exchange prices. Important to mention are the announcement of the additional production cuts which are to be made by major global premium players to increase efficiency and support the market, and we also announced our reduction in capacity a month ago. At the BEMO, our main investment project, the hydropower plant already ramp up, and the smelter construction is well on the track.
The hydropower plant has started capacity sales to the free market from the 1st of March , and the smelter's first metal is to be poured in the third quarter this year. This is our highlights, and now, I will ask Evgeny Kornilov to continue with our results. Please, Evgeny. Financial results.
Thank you, Solovyov. I am now on slide five, which talks about our sales performance. As you can see, our volumes have decreased by 3% as the company has started to reduce the production and respectively sales volume in line with the program of optimization of the capacity. You can see on the chart below that LME price, as such, stayed more or less on the same level. It was $1,997 in the first quarter and $2,003 per ton in Q1. But the realized price has increased quite substantially by almost $100, which is a function of two things. First of all, due to quotation period delay, we have picked up some of the higher LME, which happened in December. We picked it up in the first quarter, so there is a QEP effect.
Also you can see that the realized premium has also increased from $249 to record high $264. That is happening in line with the market slight increase of market premiums and also increased contribution of value-added products in our portfolio fee. We reached 41% in the first quarter 2015, but Steve Hodgson will talk later more about this. If we move to slide six, which talks about the cost evolution, you will see that our aluminum segment cash cost, which is a table on the right-hand side on the bottom of the page, is at $1,971 per ton. You can see that the company has been pretty stable in the cost performance and due to a number of activities, which the company has taken to control the costs.
The costs have stayed in the range of $1,900-$2,000 per ton almost for two years by now, despite significant currency fluctuations which happened during this period, despite continuing inflation in Russia.
You can see that the cost of sales, which shows the production costs increase, is actually below the level of the percentage of appreciation of ruble, which means the company has more than compensated the strengthening of the ruble. At the same time, on the cost side, we still have a significant upside because right now we are experiencing abnormal high level of electricity costs in Siberia, which is linked with insufficient power generation by hydro plants in Siberia, which in itself is caused by low level of water, which we experienced in Siberian rivers in the last quarter of the previous year and the first quarter of this year. There is also water accumulation, which is happening to support filling up the reservoir of Boguchanskaya Hydropower Plant, which also constrains output of hydro-generated electricity at this moment of time.
The good news is that all these factors are temporary, and we would expect that during some of this year, these factors will be phased out, and we will see a decrease in the wholesale price of electricity in Siberia, which will help us to take our cost down. If you look on page number seven, you can see the bridge, and this pretty much explains the story between the fourth quarter and the first quarter. There is a substantial negative effect, which is generated by strengthening ruble, and there is a quotation period positive of around $70 million, which you can see here, which we enjoyed in Q1.
Talking about our debt situation on page number eight, it is important to mention that in the first quarter, the company has refinanced $473 million, which includes $400 million prepayment to our PXF lenders, partly from new facility, partly from own cash, and also some prepayment to Russian lenders from its own cash. So in total, company used around $130 million from its own cash flow to pay down debt. In April, which is outside of Q1, it is already Q2, you know that we have sold a minor stake in Norilsk Nickel. Cash proceeds from this transaction were used to decrease the debt outstanding to Sberbank in the amount of $620 million. So you will see further deleveraging when we are going to report Q2. I think it is important to say two more things.
First of all, with Norilsk Nickel deal, we now have better visibility on the guaranteed [inaudible] flows, which include some proceeds from shares like we received in April, and also dividends for the next three years. And such proceeds are pretty well predictable, and also quite recently, the board of directors of Norilsk Nickel has made a recommendation in respect to dividends for 2012, which is totally in line with our agreement. So we expect such proceeds to happen in the nearest future. And so in the future, you can see the chart which forecasts future cash flows. Of course, these cash flows will provide significant comfort to the company in terms of ability to manage that portfolio and to repay when and if possible and necessary.
I think at this moment of time, I am ready to pass the word to Oleg Mukhamedshin, who will talk about our growth projects. Oleg?
Thank you, Evgeny. Thank you very much. We are currently on page number 10. I think the flagship project of RUSAL is still our BEMO joint venture with RusHydro. Let me provide you with a brief update. The main event at BEMO project in the first quarter was the start of electricity capacity sales on the wholesale market on the 1st of March . Currently, BEMO Hydro Power Plant is fully connected to the grid, and we are making money out of this business. Right now, units number five and six are being prepared for commissioning. So in a few months' time, power plant will be utilized two-thirds of its capacity. At the smelter, works are being done at full speed, and we expect first liquid metal in the third quarter as we promised before.
Taishet project is actually postponed, so we do not invest much into Taishet at the moment. We continue certain minor construction works, but we do not expect Taishet to start production before 2014, as we also reported before. Now I would like to pass a word to Steve Hodgson, who will speak on the market environment. Steve, please?
Thanks, Oleg, and good morning. Good afternoon, everyone. I am on slide number 12, and I think you can see from the chart in the top left there that as far as demand or consumption outlook is concerned, the aluminum segment probably offers the best growth prospects amongst all of the base metals, with a forecast growth in 2006 of, I beg your pardon, 2013 of 6%. That compares, just out of interest, to copper at 3.5% and zinc and nickel at 4%. So we can say the demand side is not the issue in this market today. Construction and transportation still account for the vast majority of consumption globally. Between those two segments, around 50% of total demand, and those segments are growing at around 7% per annum. I will talk a little bit more specifically about the individual regions in the next few pages.
But overall, we're forecasting the market for the remainder of 2013 to be approximately balanced. I'm now on slide 13. I'd just like to run through a few of the individual markets, just to give you a flavor as to what we're seeing in these markets. For Q1 in North America, we saw a modest uptick in demand, despite late winter weather inhibiting some building and construction projects. Automotive remains very strong, and U.S. housing starts reached over 1 million units on a seasonally adjusted basis in March. The electrical segment remains a positive spot in this market. The only weakness that we're seeing at the moment is in the beverage can area, where a change in beer consumption and soft drink consumption is impacting shipments to this segment in 2013.
From our own sales book and what we're seeing in North America, the building and construction and auto segments are driving our business in this market. Looking at Asia, demand ex-China has risen significantly since the 2010 lows. Whilst there's quite a bit of seasonality in these numbers, we are seeing quite a good demand uptick in 2013. Looking at Japan specifically, the weaker JPY seems to have returned some Japanese manufacturing back to competitive levels within Asia. An example of that is we're hearing for the first time can sheet being offered out of Japan into the rest of Asia on the basis of a more competitive exchange rate. Auto manufacturing and housing starts are also early beneficiaries of a weaker Japanese yen. Auto production generally across Asia remains very strong, as we see that across all of our markets.
Looking at our alloy sales into this segment, they're growing by around about 10% this year. Probably the main concern with Asia that we see at the moment is the position of Korea. It's being squeezed somewhat by cheaper flat rolled products coming out of China, whereas at the same time, a more competitive Japanese yen is pressuring Korean products on the higher quality end. But overall, the Korean economy is expected to grow, so we are positive that domestic consumption will sustain demand in Korea. The sick man, if you will, from a consumption perspective, is continuing to be Europe with little positive news coming out of the region in Q1. Both construction and car registration indices continue to fall with little sign of bottoming out at this stage. On the other hand, it doesn't feel that bad.
I think part of the reason for that is that there is still good underlying demand in packaging, and we're seeing good underlying growth, in fact, in the Turkish markets, which has increased its exports from Turkey into some of the southern European countries, and that sustained the total European demand for primary aluminum during the first quarter. Aluminum foil production is forecast to continue to grow, although as a whole, the domestic market does remain quite volatile. From the viewpoint of our own sales book, again, shipments to the auto segment in Europe year-on-year are up by about 20%, and we're seeing very good sales into both the extrusion segment in Northern Europe and the rolling segments, particularly related to packaging and foil products. So slide 16 gives kind of a one-page summary of what we're seeing.
I did not talk specifically about the CIS markets, but light vehicles and electrical segment is supporting demand in that region. North America, are good across most applications. Oleg will touch on China later on, but China really has returned to growth in the first quarter across all segments as well. Let me just talk a little bit about supply and demand and page 17.
As I said, we acknowledge that the demand profile is very positive, but it is clear from the stock picture, the warehouse stock picture, that there is still a problem for the industry as a whole, in that we are producing more aluminum than our customers require. Year-to-date stocks have remained at relatively elevated levels of around 5.2 million tons. Even the recent drawdowns that we have seen through March and April are largely attributed to stocks shifting from LME warehouses into cheaper off-warrant storage locations.
From an industry perspective, from a balance perspective, the curtailments of capacity outside China have been positive. They have been noticed within the industry, and they have brought the market to an extent to balance through the latter part of, I think probably through the early part of 2012, and now in the early part of 2013. More announcements have been flagged both by Alcoa and of course, in our previous results several months ago. I think it is fair to say that more is required to be done. We are really looking at a sustained additional capacity of curtailment in markets outside China of around 1 million to 1.5 million tons on an annualized basis to cause any serious but necessary sustained stock drawdowns.
Looking maybe to finish my segment at some of the financial aspects of the market, slide 18, and what we can see that throughout 2012 and accelerating, in fact, in 2013, is a divergence in the equity indices versus the commodity indices. There is no doubt that in this low inflation environment, we are seeing less interest in the commodity index from the commodity investors. In fact, I read earlier this week a report from BlackRock, which suggests that around $9.3 billion has moved out of index traded funds in April, bringing the total for the year to about $18 billion. Obviously, that is led to an extent by the dramatic fall we saw in gold. But from a sentiment perspective, there is no doubt that the smart money at the moment is going into equities, and we are seeing less interest from the long-only investors in aluminum.
That has had an effect, in terms of price sentiment of depressing the outlook. We are seeing an increase in overall volumes traded in the early part of 2013. Based on our analysis of the open interest, that does seem to suggest the formation of a greater number of shorter positions, most notably by the system traders or the so-called CTAs, who are largely trading the macroeconomic indices globally and using the aluminum contract as a means of creating their positions. Sentiment at the moment and looking forward is somewhat negative and definitely having a negative impact on price. With that, I will hand back to Oleg, who is on slide 19.
Thank you, Steve. A few words about China, which is still the largest consumer of aluminum and the largest producer of aluminum worldwide. We thought that more than 1.2 million tons of production were cut in China in 2013 year to date. We expect additional capacity cuts around 300,000 tons as per those announcements already made, including China Power Investment. Also, we heard rumors that major state-owned companies had a number of meetings trying to reach an agreement to cut 10% of their production altogether. As you can see, the new capacities commissioning has also slowed down. At today's Shanghai Futures Exchange price, we estimate around 30% of Chinese aluminum production is still profitable, and we are talking about only cash cost here. So full cost is obviously much higher, close to 75%.
The State Reserve Bureau purchased 300,000 tons of primary aluminum from state-owned companies in March in attempt to stabilize the market. Clearly, it is not enough, and the measure had only a short-term impact, and the aluminum price continued slumping. Also important to mention the numerous new regulatory measures of the Chinese government bodies. For example, in February, the Ministry of Industry and Information Technology announced new regulation for the aluminum industry, including the elimination of nearly 1 million tons of capacity by 2015. Also, new industry entrance requirements were introduced with strengthened environmental protection standards and sufficiency in power and bauxite resources. The same ministry encourages further consolidation in the industry, while no new expansion projects will be approved.
The same ministry plans to publish the list of aluminum smelters that meet its environmental standards, with the selected companies receiving help in cutting costs, while those left off could be forced to stop production as they become less competitive. Also, the new head of NDRC, Zhang Ping, said again about concerns of overcapacity in steel, cement, and aluminum industries. Last but not least, China's environment administration announced that stricter emission standards will be implemented for the construction of green field coal-fired power plants, non-ferrous metals, and some other industries from the 1st of March. So now the standards will be close to international levels. To sum it up, we expect China to increase production cuts, and the overall Chinese supply demand will be balanced this year. So thank you very much. Now our management team is ready to answer your questions.
Thank you. Ladies and gentlemen, if you would like to ask a question on this call, please press star one on your telephone keypad now. Our first question is coming from the line of Nikolay Sosnovskiy, VTB Capital. Please go ahead.
Yes, hello. Thanks a lot for the presentation. I have got a couple of small questions. First of all, on production, given the first quarter electricity hike you mentioned, what would be the impact on the full-year horizon, and especially the impact of lower aluminum price in your LME-linked contracts? That is my first question on costs.
Let me comment. I think it is important to say that our long-term contracts are not linked to wholesale electricity markets, but they are linked to LME price. Since LME price during the period was fairly low, it was pretty low to the lowest margin, we have enjoyed the lowest possible cost of electricity supplied through long-term contracts. The high electricity on wholesale market only relates to the purchases that we make outside of our long-term contracts. I think it is also important to mention that despite this increased cost in Siberia, the all-in price per kilowatt hour is significantly lower than the European part of Russia, and our smelters continue to be profitable in Siberia. It is not good that the price has increased, but we are still doing pretty well in Siberia.
Yes. What I was referring to basically is the mix of both factors. Till the remainder of the year, should we expect costs to stay close to USD 2,000, or they can go back USD 50 to USD 100 per ton lower?
Well, I would say as soon as we see decrease in wholesale electricity price in Siberia, this is going to be no adjustable impact on our production cost per ton, and we can see a decrease. We would estimate that should happen around summer this year, once we see more water in Siberian rivers.
Okay, super. Thank you. My second question is on your deleveraging process. Obviously, you mentioned the early repayment on some of your long-term loans made after you received the proceeds from the Norilsk Nickel stake sale, the small one. In this case, because you chose to basically to replace the long-term maturity loan, what would happen to the outstanding 2013 and especially 2014 maturing loans? Are you planning to refinance or partially repay these ones? What is the process on these ones? Thanks.
Thank you for the question. I guess we would use any available free cash flow that we generate to decrease the debt. I think at this moment of time, we mostly plan to refinance the debt. So $600 million that we have outstanding for this year, this is primarily VTB and Gazprombank. This is going to be refinanced with the same two banks, and we already have some facilities we have in place that in the range of $500 million we already have available. We are planning to negotiate more facilities that would create us comfortable refinancing for this year. I think you need to remember that we expect to receive more than $500 million dividends of Norilsk Nickel this year. That would give us extra comfort for this year.
Next year, the picture is more or less the same, because if you look at the debt, it includes some ruble bonds that are falling due next year and some obligations from amortization of long-term loans. I think when you look into the next year, you should remember that expected cash flow from dividends of Norilsk Nickel is around $800 million, which is more than half of that amount, which I think makes us feel pretty comfortable in terms of next year as well.
Okay, super. Thanks a lot.
You are welcome.
Thank you. Our next question is coming from the line of Alexander Levinsky, Sberbank. Please go ahead.
Hi. It's Misha Stiskin from Sberbank. We have three questions, if I may. First, if aluminum prices stay where they are, meaning sub USD 1,900 for the next 12 months and premiums remain flat, would you potentially consider cutting your capacity or expanding the capacity curtailment program that you previously announced, which is 300,000 tons? Thank you. That's my first question.
Let me answer your first question. Thank you. No, we now just confirmed the 300,000 tons this year, and we are not going to increase this amount this year. But definitely, if the situation will be the same, we will see what the other producers will do, and if the program will expand in the world, we definitely will consider once again the possibility for the next year, but not for this year.
All right. The second, sort of talking about your cash costs, this is mid-May already. Can you possibly provide an outlook for costs in the second quarter compared to the first quarter? Also talking about BEMO costs, since you will commission the smelter in the third quarter, what is your current thinking on the expected cost of the asset on a standalone basis? Thank you.
I think, first of all, we do not provide any forecast on the financial figures, but I can give you a couple of items that would impact the development of the situation. I think it is important to see that LME price continues to stay pretty low, which means our electricity cost as per long-term contracts will continue to be pretty low. Unfortunately, the wholesale market continues to be still high in Q2, so we do not see expected decrease of electricity in wholesale market in Siberia yet.
All in all, I would say electricity more or less is the same level as Q1. We really do not see any major changes in raw material costs. I think it is important to see, you all noticed that there is a weakening of the ruble, which happens in the second quarter, so that would help us because of ruble eliminated part of the cost.
I think, all in all, we are more or less on the same level with some positive impact of exchange rate. Which is your second question. I think BEMO, we need to remember that BEMO is not consolidated because it is a joint venture, so you really will not see figures as a part of our report. But once again, BEMO, we are planning to start some production closer to the end of the year. It will be very small volumes. During startup period, of course, the cost would be very high, and I would say they are not comparable at this stage. We need to see when the volume stabilize, and at that moment of time, they would be meaningful, and that should happen, I would say, one year from now.
What is your thinking on costs when the asset is operating at capacity?
Let's say if we imagine that the BEMO smelter would operate today at the full capacity, it would be around $1,800 per ton.
All right. Thank you.
Thank you. Ladies and gentlemen, just before we go to the next question, just another reminder. Please press star one if you would like to ask a question on this call. The next question is coming from the line of Sylvain Brunet from Exane BNP Paribas. Please go ahead.
Good morning, gentlemen. First question was going back to the outlook chart you were showing on China, where you were showing a positive trend in construction. Just wanted to get a bit more color there, because what we've seen so far have been relatively disappointing numbers. Even the housing starts in March in China were down 19%, so is that the outlook for the year and therefore pretty material catch-up you're expecting? If yes, in what type of building, what types of regions? Would be good to get a bit of color there. Second question is on your CapEx guidance for this year and next, perhaps if you've got visibility there already. The last one is on the power plant. Given BEMO would be selling to the grid, what sort of contribution should we expect, if that's material? Thank you.
Thank you. Probably, I can start from your first question, and maybe Steve, who is monitoring demand in Asia can contribute as well.
You are right, the housing construction is going slightly down. At the same time, the manufacturing, construction, and infrastructure development is basically going on. China has committed to move another 300 million people to new cities. So you can see certain slowdown of housing construction in already developed and large cities. At the same time, there is an infrastructure boom in less developed territories, and we are talking about new cities building in western and central provinces. We are talking about railway construction. We are talking about transmission lines construction, et cetera. Also, transportation industry is doing quite well in China. You know that last year for the first time, China produced more passenger cars than the whole Europe. Steve, would you like to add anything?
I do not have an awful lot more to add. My comments with respect to other Asia were really in relation to Japan and the 7% increase that we have seen reported in housing starts quarter-on-quarter, which is partly still a combination of rebuilding from the tsunami from prior periods, but also we believe part of the government stimulus as well. I do not have a lot more color than that. But we do see demand growth reflected in our book in terms of our extrusion billet orders.
Your second question, I think Evgeny can answer.
Yes, of course. Thank you. The BEMO power station. First of all, the level of supply of electricity to wholesale markets from this plant still this year is going to be not material. There are two things which are happening there. First of all, there is installation of new generators, which still goes on, and we would expect that throughout this year, all the generators will be installed, will be commissioned. Once that happens, they can qualify to supply capacity to the market. Capacity is substantial part of the revenue. Let's say around 30% of the revenue would come from capacity supply. We already have supplying capacity for those generators which are installed, but as we see more of them commissioned, there is going to be more revenue from capacity component. The second component is kilowatt hours, so electricity itself.
That will depend significantly on the level at which the reservoir of the hydro plant is filled. Right now, it's only partly filled. We are going through required tests and required permissions to get a license to fill the reservoir in full capacity. This work is ongoing. As soon as we get such permission, which we expect to happen this year, we will start filling up the reservoir. Which means, the more water in the reservoir, the more electricity can be produced. Only when we get to this next permission and when we get a full permit to run the plant at full capacity, only at that point of time we would see a significant amount of electricity which could be produced. The good news is that we think this will happen more or less in line with the time of commissioning of our smelter.
Because the key user of this electricity is going to be our smelter, so we would expect that it will be supplied to the smelter, and we really don't think, and we don't want lots of this electricity to be supplied to the market.
Hmm. Thanks so much. My second question was on CapEx also, if you could help us with the guidance for this year and possibly next.
Yeah. We are very careful with the CapEx. I think we are roughly running at the level of last year.
Okay. Thank you.
Thank you. Our next question is coming from the line of Andy Jones at Criteria Capital. Please go ahead.
Hi, guys. Thanks for giving me the chance to ask a question. When the shareholder agreement was reached with Norilsk Nickel, obviously prices were higher and spot levels were not generating very much free cash. Now, management have recently said that they don't want to increase leverage above 2x net debt to EBITDA, which would imply that unless we have a significant pickup in pricing, that dividend stream is unlikely to come through. Can you give us any color on what was agreed in the shareholder agreement with respect to negative pricing scenarios and so forth, and to what extent do you believe that is set in stone and will be paid out? Thank you.
Well, maybe I can start answering. I think we definitely cannot comment on Norilsk Nickel's financial position and their funding strategy, as we are not part of Norilsk Nickel management. As per shareholder agreement, it was announced and there are very clear pre-agreed numbers in terms of dividend distribution. I would rather forward this question to Norilsk Nickel management.
Okay, thank you.
Next question comes from the line of Mary Talarda from Morgan Stanley. Please go ahead.
Yes, hi. It's Dmitry Kolomytsyn from Morgan Stanley. I gather, obviously, you cannot really comment on what Norilsk Nickel will be able to do going forward. But since you were the one who published the press release where you've said that you expect to receive about $1 billion of additional dividends from the sale of additional assets, in the current market environment, do you still think that Norilsk Nickel will be able to generate that amount of money from selling the assets that you had in mind back in December?
Well, I think there is no specific time schedule or any specific time guidance for the disposal of assets. The agreement mentions that Norilsk management can sell assets, and up to $1 billion would be distributed as a special dividend. Again, this is a question to Norilsk management, when and how they want to sell assets.
Okay. Well, again, I know it's up to Norilsk Nickel management, but considering what happened to the stake of Inter RAO, and I think this is one of the assets that you had in mind back in December when you were publishing the press release about the plans to get an additional special dividend. Would you agree that in the current market environment, that additional amount of dividends would be substantially less than $1 billion?
Again, the agreement, in terms of dividend distribution and potential special dividends, is for three years. Nobody's saying that Norilsk is in a rush to sell anything today. But I would, Dmitry, again, probably ask this question better to Norilsk Nickel management.
Okay, fair enough. Thank you very much.
Ladies and gentlemen, just another reminder. Please press star one if you would like to ask a question on this call. Our next question is coming from the line of [Roger Ramon] from [Cross] Connection. Please go ahead.
Yes, good afternoon. I have a question regarding the settlement of the lawsuit with Michael Cherney last year. Can you tell us how big it was and what impact it had for RUSAL?
RUSAL was never part of this process in London, and as far as we are informed, it was resolved. We are not part of this.
Okay, you are not part of this. But can you tell us how big the settlement was? Would it be possible?
Just do not know. As we are not part of this case, we do not know. It was our CEO who was involved in this process, not the company.
Okay. Thank you.
Thank you. We currently have no further questions coming through. Just another reminder, please press star one if you would like to ask a question on this call.
If we do not have more questions, I would like to say thank you very much to all the participants. As usual, we are more than happy to address any further follow-up questions bilaterally. Please contact our IR team. Thank you for your attention.