Earnings Call: Q1 2021

Apr 27, 2021

Good morning, ladies and gentlemen. Welcome to Ixrou Axiara's Earnings Call for the Q1 of 2021 financial year ended March 31. My name is Riva Li, and I will be your coordinator today. During the presentation, all participants are in a listen only mode. Instructions will be given on how to repeat your questions when we get to the question and answer session. As a reminder, this conference is being recorded for replay purposes. Now we would like to turn the conference over to our host, Mr. Inger. Please proceed. Thank you. Good morning, everyone, and welcome to the call today. Firstly, I would like to apologize for the audio issues we had with the previous call. So today, we have prepared a backup MS Teams link, which was sent out along with the invite to this call should there be any further issues. If you are using both lines, A reminder that please mute the MS Teams link to avoid any audio overlap or audio issues. Now with me on the call Today, I have Yimu Dian, our Chief Executive Officer Park Boody, our Chief Financial Officer Park David, our Chief Commercial Officer for Consumer And for Abijin, our Chief Commercial Officer for Enterprise and Home. Now, Ibu Dien will share the highlights of the Q1 of 2021, which we will then follow by the Q and A session. I will now hand the call over to Ebudian. Thank you, Yinta, and good morning to everyone. We are happy to report a decent set of numbers in the context of a seasonal weaker quarter and despite still facing challenges from both the COVID-nineteen pandemic as well as the aggressive price competition in the market. This is due to our consistent focus in executing our operational excellence strategy to video mobile SMS users in Indonesia. This quarter, we are happy to report sustained profitability with EBITDA margin rising to 50% due to our focus on cost efficiencies. Our net profit for the quarter has also increased to RUB321 1,000,000,000, which is in line with our strategy to deliver improved profitability and returns for Thus, despite our revenue declining slightly by 1.7% pesos the previous due to poor seasonality and competition, we were able to record a good performance. However, As we are now 1 year into the COVID-nineteen pandemic, many Indonesians have been affected with weaker purchasing power and higher unemployment. With the vaccine rollout ongoing, we expect that the situation soon improved in the second half of the year. Nevertheless, this has impacted the industry in the short term, where we have seen operators being aggressive in trying to win this declining share of wallet with unlinked offerings and smaller such data factors driving data yield down. We at XL As yet have been active in trying to give our customers when they want through our customer centricity strategy where we focus on giving our customers the best product as well as the best customer experience and not just the lowest price offering. Thus, we have launched several new products this year aimed to do that. For our textile brand, we have launched Pocket Africa as our first offer for families, where you can share quota Family members. Young families are an important segment in Indonesia, and this is an untapped opportunity to offer a unique product to them. In our Axis brand, we have introduced Takedsukasuta, which allows customers from the youth segment, which is the target segment, the ability to customize their own offering with personalized, quality and menu quotas. Finally, with our postpaid brand, XLPRA and DAS, we have introduced more asset funding offers at attractive price points. We also continued to develop our analytics capability, which enabled us to successfully update our customers to better product Proposition always ensuring we deliver the right product for the right customer. Positively, our investment in Xcepa continues to do well for us and growth continues to be ahead of the Dialka growth rate, increasing its contribution to our revenue to 29% in Q1 of 2021. Our investments that we have made that are delivering returns and by lead by our personal excellence principles and strategy and ensure that we can continue to see growth and deliver returns for our stakeholders. Our network rollout and upgrades continues to be on track, and thus, we continue to roll out our network on schedule, with our BCS count now above 147,000 with 40% in 4.50 SCCs across Indonesia. We also continue to favorize our network to manage the accelerated growth of data tracing and ensure our customers would continue to enjoy good network experience. Our balance sheet remains strong with net debt to EBITDA of 1x. We have no USD debt, and we have also secured community facilities with the bank that we can have any time if we need additional funding. Our results so far this year have been impacted by COVID-nineteen continues to have an impact in economic activity, resulting in weakening pricing power of the community, which has prompted aggressive price competition in the industry. Nexotelas, we are seeing some initial positive signs from our new product launches, which have gained traction in the market so far and a slight easing in competition as we had in Houlihan as this season. Positively, COVID-nineteen has accelerated our transformation agenda for our long term goal of becoming a fully digitalized operator. This is through a faster digitization of our business processes from the front end through distribution and our internal processes. This will create long term benefits in the form of business and cost efficiencies. Additionally, we see opportunities in the medium To long term, SD WAN for data continues to grow with an increased digital way of living and working. Industry consolidation would also be a positive if it happens as it would reduce the competitive intensity and improved the pricing dynamics due to less players in the market. We see a window of opportunity as well As over the next 2 years to take market share while the merger processing is ongoing if it happens. The omnibus law which was At the end of last year, we would also be long term positive for the market. Finally, we would like to reiterate our guidance for the year. In 2021, we are planning for revenue growth to be in line with market, EBITDA margin in the market place and CapEx to be around Thank you, Thank you, This company but restricts similar questions to 1 of you and to allow other participants to raise their questions. Should you need to ask more questions, you can go up in the queue by pressing star 1 again, which will end the conference call at 12:30 p. M. Jakarta time. Hi, Abhiti. Can we have the first question please? We have our first question coming from the line of Arthur Panetta from Sidi Kru. Please go ahead. Hi, thanks for the opportunity for the 2 questions. Firstly, on competition, you mentioned that you elevated competition in the market causing stress on the revenues. Can you elaborate what products are coming out from periods which has caused the stress that you've mentioned? Second question I had is with regards to the dividends. You paid out 80%, 90% of FY 2020 numbers Versus averaging around 30% in the prior year. How should you view your payout levels going forward? Thank you. Hi, it's Arthur. So I will take the first one regarding the competition. David here. So as you know, The competition has been quite challenging in both quarter 3 and quarter 4 Since the incumbent entered also the unlimited products. So they had the unlimited marks where they offer high quotas With unlimited applications and then unlimited tariffs as well. At the same time, they also entered the low denominations bucket with The chip prices. So I think that has been the case in the Q1, especially in January February, They have still especially those products. I have to say though that starting in March, we are starting to see some movement And some changes in benefits of some of these products that I have said and in the price hikes in the correct direction, which we also have That's some changes as well in our product portfolio, right? So I think that's what we mean. The first couple of months, It's always been quite challenging, right? So they still are playing the low denominations, low prices game and they keep doing that. But at least the incumbent has started to move in the correct direction at the end of the quarter. Hope that answers your question and I will give it to Bury, who will answer your second question. Which is pushing it up, not In those that which is driving competition? So, sorry, if I could well, you asked about Telecom sell and Indo So basically when you said your competitors have been driving these unlimited plans, I think if you're referring to self-service, which has been driving competition, Not Intotag although Intotag is actually the one who's growing faster. Correct. So I think the competition, the Incumbent has been entering the unlimited game since quarter 3 last year and that has been a strong competition. Indozart has always been challenging, has always been low price, more in the lower end and they also have their unlimited products, But they have been quite consistent with them in the last couple of quarters. Got it. Thank you. Okay. Abdul, I will take your second question here regarding the dividend. For 2020, we Pay dividend, 50% of our normalized net income, whereas as you know, for our dividend policy, it's minimum 30% Of normalized net income. But for because of our strong performance in 2020 and also the extra cash that we get from the sale of our non core asset. So we decided to pay 50% of the normalized profit. And you asked about how is it going to be the new base? Currently, we're still looking at our dividend policy to transition towards Higher payout ratio in the future, higher than our current policy, but that one is still in the review. Answering your question, okay. Got it. Thank you. Yes. Perfect. Thank you very much. Thank you. The next question comes from the line of Charles Shimpong from CIBC. Please go ahead. Hi, thank you for the call. Two questions from me. First question with regard to the drop in prepaid Private by nearly 2,000,000 in the quarter. Were these loss of subscribers to competitors? And is it a concern for XL? Do you think you need to do a bit more to retain subscribers going forward? That's the first question. And the second question, could you give us an Update on the discussion with the ministry on the rollout of the 4 gs coverage to the villagers. And do you think that there is some risk To your CapEx guidance of $7,000,000,000,000 pending the outcome from this discussion with the Ministry? Yes, those are my good questions. Thank you. Thank you very much. So I will take the first one regarding the prepaid subs. So as you might be aware, the Q3 last year, starting September, there was this school program. The school program that was until December more or less and then We started in March. So during that period, we saw a huge increase in our subscribers, Very clearly, non natural growth and not resulting from organic or from more unique users being there. It was clearly dual SIMS, Which we believe has to happen to everybody else as well, right? So we saw a lot of dual simmers taking advantage of this school program, Keeping the routine and using another same progress group program, etcetera. So we grew our subscriber base very significantly, especially in those 2 to 3 months. It was like very sudden. Since that moment, it was starting to Normalized. So we have been consolidated. It has happened a consolidation in this one, which you can see also because It's proved that we reduced the number of subs, but the ARPUs increased. So it has been very clearly that some of the school programs to Assimilars has been consolidated. And now the ARPUs are 3rd year and the but the number of subs reduced a little bit. In any case, if you check our number of subs as of quarter 1 2021 versus the quarter 2, quarter 1 last year, We are still in a positive trend. And we are still seeing a positive trend in our subs acquisition And the number of subs that we have. So I think that's I hope that answers your question. Okay? Yes. If I can just follow-up the prepaid subscribers numbers, right? You mentioned earlier on that you have seen the incumbents moving in the right direction, that we are easing of the offer For the later part of the quarter. But I did notice XL as well came up with some attractive offers in March April With regard to the weekly plan. So is there any plan to sort of also go to I'll revise the offers to be located in the same direction as you've seen. Yes. Actually, that's a good point. If you see, we have already given a couple of steps in that direction. So our unlimited products are no longer there, are all redeemable, which is a bigger step in the current direction. And we have adjusted the benefits of some of our products. Yes. I mean, we have reduced the number of gigabytes in some of our popular products moving in that direction as well. So we hope that this is the start of the recovery of the industry. Okay, Vanessa. Yes, I will take the second question. So it is true that how we operated in discussion with the ministry on the rolling out the coverage in the remote affiliated. So the Ministry understand having March that covering those reverse synergies actually We'll make a lot of challenges, yes? So that's why the situation with them now is with the focus on how to help Operator in this project in the most economical way. So in terms of CapEx, the requirement for investments in distributable damages will be included in the second period CapEx guidance. Thank you. The next question comes from the line of Raymond Khorsandi from Nomura. Please go ahead. Thank you. I have a couple of questions. First one, You mentioned earlier, if there is a merger, you could expect a improvement in the Competition landscape, yes. But if Indo sub and a half merger were to happen, The total spectrum market share will be cumulative with the largest 20 years like that themselves. And keeping them, say, a year to integrate a network, They could significantly, in our opinion, improve the quality, capacity, and hence, they can offer Better value propositions to their customer. Yet their average Tata yield is actually 2nd keepers. The average result of the major is actually 7 key plus. And certainly, from the customer's point of view, They can offer better value propositions. And if I let an article recently, So are expecting a 3 percentage point jump in the market share after the merger. How do you see these risks to XL in particular because technically XL will have the least spectrums among the GSM operators, yes. So that's my number one. The second one is actually related to your plan to grow into the fixed broadband. Yes, I don't know whether it's still ongoing Going through fixed broadband organically will likely going to take A long time, not to mention the major competitors coming from With us, sorry, in the home. And that comes out with the recent spectrum additions that they get 20 megahertz We're actually going to ramp up more on the wireless broadband businesses, which could, to some extent, cannibalize the cellular service, not just for themselves, but also for the other operators. Maybe you can give me your follow-up extension. Okay. Thank you for the question. So as I mentioned In my speech that we are positive on the margins because we believe that it will ease the competition as it will reduce the number of players in the market. So then we believe that the industry structure will be much healthier. We are confident in our company's ability to compete with the merged NPE. And we see a short term opportunity of 1 to 2 years if the matter Where we can drive Martha's share while the investment process is ongoing. But you are right. The Woodscope will have a much higher spectrum and will be probably even higher than that from sale. And with those spectrum, they can offer more services, a better quality and so on and so forth. So now we are crafting a long term strategy on how to compete with the WatchGo in the future after they are I've been icing the integration activities and whatever activities or They need to take in terms of having a stabilized growth score. We understand from our previous exercise in this kind of M and A activity Yes, there are a lot of things to be done. It's not only on the aligning organization, but we'll be Also alignment required for the distribution system, bread, network, IT and so on and so forth. So Raymond, this is Abhijit. I will take your question on the fixed broadband. Actually, our field broadband business did very well in 2020. Some of the main drivers were Work from home, school from home and also an increase to the digital lifestyle. And we see that this trend has continued in Q1 'twenty one. As of today, we have around 550,000 homes passed, and we are witnessing a very good penetration rate On an average around 30% across our footprint. We are also seeing a lot of demand Ex Java, some of the areas over there where the penetration and growth rate has been very strong. The strong performance is a combination of a couple of things, right? So first is ability to offer superfast broadband, a reliable kind of product. And the second thing is a bit beyond connectivity, having a strong product strategy where we have leveraged our partnerships with The different content providers such as Netflix, video.com, and we bundle these content propositions into some innovative packages. You also mentioned about competition and outlook. Well, our plans in 2021 are to continue to build on the That we have achieved and to continue to increase our footprint. Every option is on the table. We are looking at organic In organic partnerships, but currently, we are finalizing and getting the buy in from the major shareholders To crystallize the long term plans for the business. Yes. On the first one, if I may follow-up on that, yes. I understand that But with expected improvement on the quality post merger. Mind you, I think this is different than, in my opinion, than the previous corporate actions that have taken place, Because at the time of my decision, it's time for merger, whereby we expect the balance sheet of the merchant business would be significantly better And the network policy of the merchant business is significantly better. And as I mentioned, looking to increase market share by about So clearly, companies are good, I can share, yes, but I don't know who that, but from Indusa perspective, It doesn't really have to come by the line. In fact, they can actually take up prices, which would pay the people that Either XL or Cellcom Sell, why we wouldn't expect that competition pretty quickly picking up? Thank you. Yes. Actually, I believe that any merged Company, any company who are going into a merger, of course, they will they want to get Benefit all of it. 1 is for synergy and the other one is in the business upside. So to get the most awarded most of the final year upside, Going into still, price game probably We'll not gain the optimum situation. So Yes. I'm not saying that they will not do that, but I think the most logical thing is to be more rational in the price Yes. So instead of lowering the price, increasing the quality It's a more logical thing to do, more sensible strategy for the new vertical. And I believe also this initiative will be with the thought that the industry needs to be much healthier for all of us, we were profitable in the future. Yes, but I think I will not rule out the possibility of them still placed aggressively in the market. And as I mentioned previously, currently in Excel, we are crafting a long Thank you. The next question comes from the line of Alex Kos from Please go ahead. Thank you. I have two questions. Going forward, internally, do you expect the trend to go back to an increasing Trajectory or do you think it is the completion is such that it's very hard to move upwards now, right? But Yes. Could you just give us what your own management expectation or where is the trajectory for your prepaid segment? The second question is regarding your operating cost. It is down by 6% How should we see the trajectory? Should we also be moving downwards? Or do you think that your cost reductions have Okay. Thank you, Alex. So I will answer the first question. So let me answer it directly first and then I will give the explanation. So Yes. We expect the number of subs to keep increasing. So we believe that in quarter 2, we will have more subs than in quarter 1. So that's the short answer. Now as you were saying, we were growing. We were in a positive trend Until now and in this one decrease in quarter 1. But if you see the trend, you can feel that the quarter 3 and the quarter 4 increase was, how to say it, abnormally high. So the number of new subs that we were acquiring, we were seeing internally that was Very high. And that was coming from a very specific event. That was the school program and that was bringing Very specific SaaS that were dual SIMPLAZ. So since those consolidated, we saw that, that how to call it, that Inflation of such that happened during those 3 months started to normalize. It started to normalize and came down to the number that you can see now. Now I can tell you that we are still seeing the positive trend, natural trend that we were seeing. So as I said, regarding your question, yes, we expect to have more The number of SaaS will increase in quarter 2 and that it will be positive, yes. On the second question, Alex, As our guidance, right, in terms of revenue, we're going to grow as per market and then the margin EBITDA going to be At the level of 50%, low 50%, right, 50%. So if you compare with 2020, they are one of the same. The cost structure that you're seeing, that's going to be the benchmark for us for the rest of the year. We continue having Some opportunities on cost saving, mainly on the tower lease renewals because I think we indicated before as well that around 30% of Our sites going to be coming up for renewal in the next 2 years and we will be in the low level of rental. Probably a 10 year note is about RMB10 1,000,000 per month now, overcoming quite significantly compared to before. So this is one of the source for us to maintain our cost structure despite some increase on the cost. We also indicated before that We're going to incur higher frequencies fees because of that one time adjustment for the 10 years premium of our spectrum. So the other setting that we're also looking at is on our N and V as a result of more digitization Digitalization on our NPE activities. So those initiatives that we will do to ensure our The cost structure that we have in Q1 will be replicated for the rest of the year. We're hitting this 50% Low 50% The next question comes from the line of With our promises from JPMorgan, please go ahead. Hi, thanks for the call. Just two questions from that side. Can I just clarify on the OpEx side, is there a one off ramp in this quarter? And also the second is, can you share on your regulatory expectations? Thank you. Sorry, Dieter, couldn't catch the second question. What was the second question? The second question is can you share on your market growth rate expectation? On market industry growth rate expectations for this year? In the district. Okay. The first one on the OpEx, Peter, just to clarify. So there's a bit of one off adjustment related to we're releasing some provision on labor, but the rest is business as usual. So like interconnect costs coming down because the reality people we have people who are suffering because this infrastructure costs on the rental that lower that As indicated because of the new rates and marketing, R and D expenses are lower. So do one off is on the release on the provision for Are you considering the amount of the loan? I'm afraid we cannot go through the detail. But as indicated, it's [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Not material, we disclosed on the one off adjustment. Yes. Okay. On the second question regarding the expectation for the industry growth, so It's difficult for us to say and I'm going to explain why, right? So I think there are a couple of topics that are ongoing, as you know. 1 is the Potential Mexico measure that is going to happen. The second is the COVID. And the third one is the stiff competition that There have been during the Q1 that looks that is a smooth finish. So we expect that the half one is going to be a smooth growth. So that's a little bit the expectation. Nevertheless, if these things clarify for the second half, which should, We expect that the second half will be better than the first one. So again, we cannot give clear guidance because of the Unfertencies that I already mentioned, but we expect the first half to be a smoother than the second half where we can Start to see a bit more higher growth. All right, guys. Thank you. Thank you. The next question comes from the line of Krishna Puthappay from Monthly. Please go ahead. Hi, thanks for the opportunity. These are questions for me. My first question is not on Spectrum. The the regulatory extension plans to auction out the 700% potentially before 2022. Do you see any progress on the front? And related to that, would you mind sharing your thoughts on XL pacify for the spectrum? And how should we view the opportunity for 700 megawatt spend In the context of maintaining actual social competitiveness in the market, especially in the face of those other 3 mergers ahead? Thank you. Okay. Thank you for the question. Okay. So with the spectrum that we are We will still be able to do it with our spectrum for the next 2 to 3 years. We will require a spectrum to be able to launch 5 gs synthesis. And the 5 gs spectrum will be available at the earliest in the 2020 T2 for 700. And then for 3.5 probably a little later than that. So of course, for us, we will try to get this additional spectrum for us to be able to launch on 5 gs service. But again, for 5 gs service, It actually requires the right spectrum brand because if we just utilize the current spectrum brand, the customer will not enjoy the real 5 decent fees. 5 decent fees will require a quite a band of the spectrum. So we really hope that the government will be able to Free free up those spectrums and option the spectrum within 1 to 2 years from now. Okay. Thanks, Rudyard. So sorry, maybe if I take one off on that. So would it be fair to assume that You can assume $7,030,000,000 CapEx this year, but CapEx intensity will likely Head up 'twenty two onwards here. That should be the balance required, I think, for the next 2 to 3 years. Yes. That's a pilot observation because of course, within the network for 5 gs Services, it will require new investment, not only for the radio network, but also to build new fiber and transport link that will be required to build for 5 gs services. Thank you. The next question comes from the line of Chris Shelby from HSBC. Please go ahead. Yes, hi, good afternoon and thanks for the call. I have a few questions. Firstly, can you please elaborate on how competitive Dynamics have improved from March and April. Like you mentioned, there has been some changes in time permits. So if you can elaborate on that. And then on your fixed broadband, can you understand that your non Our investment would be dependent upon whether or not this mobile consolidation of Margin goes to or not, like how does that change your scapula bladder patient meaning And let's explore that, Jaime. Okay. Thank you, Julius. So regarding the competitive dynamics, Starting end of March, beginning of April, there have been a few movements, mainly From the incumbent and also ourselves. So the incumbent that comes out has predefined the unlimited mass proposition They have put an FUP to the unlimited, so with full speed up to 13 gigabytes And then they decrease the speed, which is already one step in the correct direction, right? So I think That is one of the things that they have done. The other in different products, they have also Adjusted the prices a little bit up. So for the same benefit, you need to pay a little bit more, right? So I think it's 2 movements. 1, reducing BIP, the unlimited benefits of selling of the products And number 2, increasing the pressures in certain ways. At the same time, we have gone in Similar way. So we already started last year by taking out the YouTube from the unlimited and making it only redeemable. In November, December, we did the same with many of our products. And in March, we have continued doing so. So We have taken some of the unlimited applications out of the products and make them only redeemable. So that's number 1. We have also adjusted some of the benefits, the number of gigabytes in some of our products being a little bit more extensive. So I think those are the big changes in the value propositions from the company and ourselves. From the rest, I have not seen so many changes. To be honest, I think they still follow more or less the same strategy of low price, low denominations, But more or less consistently. So I think those are the biggest changes in the competitive dynamics. In any case, I would also like to underline like previously, Iguodia mentioned in the beginning that we are also trying to avoid Entering in this price per gigabyte mode and we are truly designing new experiences like Our new family package, Accra, that is completely a new direction for a family target segment, which we have successfully launched 2, 3 weeks ago. And that will be another thing that you will see from us, right? That we will start moving into Products that are pretty much generated to family experiences, products that are more Rewarding the family experience moving forward. Can I just check on this, like are these changes nationwide or these are more again concentrated in few regions? Yes. So as you know, most of the operators will have like different areas. The changes that I mentioned in our mostly nationwide, Mostly nationwide. Although it's true that in specific areas there might be Some changes here, Anderbaz. There was the big ones that I mentioned are reasonably. So Piyush, your question on fixed broadband, the short answer is no. Our fixed broadband strategy is not dedicated upon the merger at all. This is a long term business and the groundwork for this business, the plans were laid more than 2 years ago. And The standalone opportunity in Indonesia is still strong, and we intend to prosecute it as per our strategy. I guess no more questions. Thank you. I'd also like to pass back the call to the host. Actually, hang on, Revathi, I see we have a question from Prem. Can we just take that as maybe our last question? The Hi, thank you for the opportunity. A couple of questions from me, please. First of all, do you think all these price adjustments that have Taken place over the last couple of months. Our function of operators trying to boost profitability, or do you think it's Coming from network congestion and forcing them to actually adjust these price points, that's number 1. Secondly, with regards to the Ex Java business, how's the profitability of that? Have we come to that breakeven point? Are we close to the point We can start turning EBITDA and profit positive from those investments. And finally, since we Started talking about 5 gs. Would you be able to hazard a guess of maybe between the 20 3 to 20 25 period, how much incremental CapEx do you think we will need to spend as we embark on the 5 gs journey? Thank you. Thank you, Praveen. So I'll take the First question regarding on the why the operators are increasing the prices now? Is this because our networks Arcon, yes, we don't have any other option or this is because we are aware of the situation and we want to Boost profitability. So I can tell you that it's the second one. It's a profitability decision. So our networks is I can talk about ours, but I'm sure competitors as well. Our network can still bear more traffic. So it's not a congestion Issue over quality of experience of our customers issue, it is a decision made thinking on profitability. Yes. On second question, Prem, regarding Istiapa, as you know, we've been investing to this Istiapa since 2017, And we targeted to have PIVEC for 2, 3 years in line with our operational excellence principle. Most of our area are already profitable or reaching profitability. However, as a whole, ex Java, not yet profitable As we continue building up the scale because the game is on the scale. We expect over the next 2 years, As the advice of all, can we sell comfort level of profit? I think that's what are we seeing as the advice of now, Frank. On the last question regarding 5 gs, how much 5 gs CapEx incremental that we should look at in the next few years, especially next 5 years? We are currently, as Udi had mentioned, still crafting what are we going to do in the grand plan on this 5 gs and also the And to the merger if it happens. So I think at this point, we cannot share more detail beyond that one. Okay. As I believe there are no further questions on the queue, I would like to end the Thank you everyone for your participation in today's call. And as always, do get back to us if you need further information or clarifications.