Ladies and gentlemen, welcome to the results conference of CD Projekt Group. In a moment, we are going to discuss 2018 financial results. We are going to talk about the most important event. My name is Adam Disky and together with me traditionally, Piotr Milvovich. Let's start with sum up of the most important events.
Well, first of all Cyberpunk, a game that we've been developing for quite some time now, the biggest project in City Project history, a huge milestone in our development, A game presented to the general public last year for the first time at E3 one in L. A. In June. Shortly before the first, we published a trailer. Then the game was shown in Cologne, Gamescom in August.
And after the first, we published the whole trailer on YouTube. The reception of Cyberpunk has been really good. It did meet our expectations. We are very much excited by how players responded to the game. And at E3 fairs, the game was awarded with more than 100 awards.
A few figures about what we've achieved on both fairs will show the game behind closed door at hourly presentations to 3,000 people from the industry influencers, the media. The total reach YouTubers and streamers who saw it is two fifty million. This is how many subscribers they have and followers they have. Both videos that we published at the occasion of the first fifty million views. We are talking about all channels on all continents.
Digging a bit deeper, we compared Cyberpunk and The Witcher three. What you see here, we've already shown this before. It's a comparison of viewership on our YouTube channel over the first three weeks of the six most viewed video content, The Witcher three and three videos for Cyberpunk. The beginning of the campaign has been very promising. Most of the campaigns are still ahead of us.
Last year, we also intensified our work on GWENT. It underwent the last phase of changes, homecoming, as we call it. And as a result of the changes, we decided to launch the game in Q4 last year. Thus, we ended a beta test phase. The game is now in the final shape, which is not to say we're not going to change it as a living product.
But now we are focusing on making sure that we add new things instead of changing what's there. So we moved to game as a service mode. I'll talk about it more in the next part of the presentation. Apart from GWENT, we launched Thronebreaker and it's a game that was supposed to be an extra for GWENT, but it involved towards a stand alone project. It was launched also in Q4 last year.
We launched it on four platforms, two PCs and both consoles. And the most important objective has been met, yet another CD Projekt game of very high quality. You need to remember that in the case of smaller games, because Thronebreaker is not as big as any Witcher. So achieving Metascore 85 by 100 is a great achievement, which makes us very proud and satisfied. This is yet another product included in our catalog, three Witcher plus Thronebreaker in digital distribution.
The Witcher one has been selling really well. Most of the sales is generated by The Witcher of three, of course, but each title added to the catalog of games that we sell quarter on quarter has been supporting our results positively. Now since we are talking about the results, over to Today, we published a manual report of CD Projekt Group and I'd like to start discussing it with profit
and loss
account. Revenues from sales of products and services. The group generated more than $236,000,000 sales and the project Threat was responsible for vast amount of this figure.
The
Witcher three was responsible for it, went as well as Thronebreaker mentioned by Adam. Now red bars Q1 very important. The share of Q4 in the whole year was better than last year. Percentage distribution is represented by a yellow line. So as we started selling full version of GWENT as well as Thronebreaker, we started calculating expenses which are presented here as cost of products and services sold.
Total is PLN 12,700,000.0. These products will be settled in two ways. For Gwent, we will be including it in costs over thirty seven months in a linear way. As regards Thronebreaker, we are planning to capture these expenses for three years from the launch proportionally to the expected future sales. And the estimates of future sales have been made based on our historical titles.
Already in 2018, we included in costs some 40% of expenses development expenses for Thronebreaker. The second part of revenues, revenues from sales of goods and materials, in total it was million a lot. A vast part of it was generated by GOG due to sales of our own products as well as products of third party suppliers, GEOGCOM service. Now products coming from external suppliers, the distribution of the sales is presented on this slide. We presented the slide excluding sales of our own products, which have their launches, which distort the standard distribution, it's presented in dollars where we have the most transactions to clean it from exchange rate differences.
So as you can see, subject to seasonality, Giordi has been successively growing year on year and selling more and more. Coming back to profit and loss account, gross profit from sales in 2018 exceeded PLN 220. At the same time, we were incurring selling costs and operating costs. Selling costs were lower than last year PLN 100,000,000. The biggest share includes here costs related to promotion of our products.
Leading product involved Gwen, but well, we are not yet showing revenues from sale of Cyberpunk, but we are including expenses of promotion, participation in first in L. A. Or in Cologne in Germany last year. Of course,
and that's the
result of increased scale of activity, and that's the result of increased scale of activity, increased headcount and the fact that we've been doing more and more. Financial revenues, we've generated better results year on year, mainly due to the fact that last year we had negative exchange rate differences, which haven't been as strong this year. Now income tax on the result of the group was charged by PLN40 million and that's a value which is lower than in the previous years, thanks to the possibility of using research and development discount. And the positive effect is visible in the calculation of the current tax as well as deferred tax. So all in all, net profit of the group in 2018 is more than PLN109 million, which means that net profitability of our sales exceeded 30%.
It's slightly lower year on year. But looking at all revenues from sales of owned products and goods from external suppliers, after deducting all expenses and taxes, development projects. And they grew by PLN100 million over a year. And individual operations groups look as follows for last year. 2018 was started with PLN133 million of R and D expenses.
During that year, we spent EUR112 million on work realized during that year. The value of completed projects related to Thorn Breakker more than 76,000,000 and this was rolled over from R and D expenses in progress to expenditures on finished projects and of that amount, million was discounted. So all in all, the balance was 200 and it was 178,000,000 expenses on unfinished projects and 65,000,000 were completed projects. Moving on to the balance sheet. A new item that appeared in our asset is a real estate.
Last year at the end, we bought a plot of land neighboring our current seat alongside an office building standing there. The building gives us the possibility of developing some 3,000 new square meters of office space where we will be able to develop our current activity. 3,000 square meters, that's slightly less than the current half of the current seat in Warsaw of our company. So probably we will be able to provide two fifty new jobs for CD Projekt Red and GOG. Now as regards other fixed assets, this value comprises two biggest groups.
First of all, the value of the company, which accounts for half of this amount revealed historically when CD Projekt was published on the Stock Exchange. But it also grew in 2018 as a consequence of procurement of the Vratwaffe studio from SMT. And the studio became the start of our presence in Wroclaw where we are executing development work. Another big part of fixed assets, well, fixed assets and other raw material assets which have been intangible assets which have been on the increase. Receivables rotation at CD Projekt Red, less sales of CD Projekt Red and shorter rotation cycle and GOGCom, which has a shorter cycle of receivables increased.
So total value of trade receivables at the end of the year is lower. Now as regards the next item, GOGCOM is responsible mainly for this value and it represents purchase minimum guarantees, the rights to distribution of games in the service. 7,000,000 slot. And this amount shows you, among others, the impact of agreement with Blizzard based on which we issued a cult Diablo Part one and soon we will have the pleasure of offering the first and second part of Warcraft.
Now the largest item on the balance sheet, cash and bank deposits that went up in 2018 by slightly below EUR 11,000,000, which I'm going to discuss in cash flow more extensively. As to our own equity, we exceeded our the symbolic value of PLN 1,000,000,000 is mainly because of retained profits from a given period. When talking about trade liabilities, this is in stark contrast to trade receivables because of growing impact of GOG and GOG liabilities related to royalties generated on sales from Q4 that are characterized by a longer cycle than other liabilities. This went up translating into overall trade liabilities for the group. When discussing other liabilities, we can see an increase by PLN 33,000,000.
Some two thirds of that total are advanced payments received by CD Projekt Red from the contract signed last year for royalties on our future licensing agreements. Other provisions include a series of provisions made for salaries dependent on the results. These provisions are proportional to the results achieved, meaning the total in 2018 is lower than the one presented at the end of twenty seventeen. And now the total equity and liabilities over 2018 went up to for the first time ever exceeding PLN1 billion just as the case for capital. Now coming to cash flows for 2018.
We opened the year with cash and deposits balance at slightly below PLN $650,000,000 in the cash outlook. Out of that, we financed R and D expenditures on the production of games such as Gwent, Cyberpunk and Thronebreaker at some PLN 98,000,000. We also invested in nonmaterial assets and at some PLN23 million. And then the operating flows generated was positive at the level of over PLN132 million, meaning that with record high production of new titles and investments in company development as well as implementation of various projects in that regard, we have not yet beaten into the reserves so far. To the contrary, we increased the total of cash and deposits by over PLN 11,000,000.
Now taking advantage of this occasion, let me also summarize the past four years since the Witcher release and the continued sales generated for Witcher three, which continues to remain on a high level. Looking at volumes, at the point of release, over 70% of sales was of the boxed versions physical distribution with some 30% attributed to digital distribution. But the digital distribution segment has been growing over the years. And last year, the 80% of items, which are free copies sold last year, were sold in digital distribution. When talking about the split across platforms piece at the point of release pieces, we're responsible for around 30%.
But in 2018, that figure was already around 50%. This is it from me. Adam, if you could now take the floor again. Piotr. Now a few words about our plans for the remaining part of this year.
First of all, just like I said already, GWENT transformed into the games as a service mode. We are treating the game as a service rendered. So far, until the end of last year, most of the GWENT team was dealing with development of GWENT and its subsequent versions. But starting at the beginning of this year or the end of last year, the whole 100 strong team is dedicated solely to developing GWENT as a service, meaning
we are
and will continue to release new updates and functionalities each month Starting early this year, we've already had eight of these updates with varied scopes, meaning there has been one almost each week and several times a year. We're also going to release major add ons. The first one is going to be released tomorrow and is called Crimson Curse. Let us watch the trailer now. We've awaited this far too long.
Hunted by those who live in comfort and opulence. No more. The Crimson Curse is unleashed this day. How one time hunters now become our prey. There's one more thing for GWENT.
Yes. This is it. I'm proud to announce mobile GWENT release, the first one coming this year for iPhones, but we are also planning a release for Android phones to follow. We are really excited about GWENT getting to handheld devices as obviously it's a brilliant game to play in front of a big screen, but that is a session you have to plan for. So far the players had not been able to play Gwent whenever they have a moment.
Late this year, they are going to start receiving this opportunity for more and more devices. And the last thing we have prepared for today is our invitation to E3. Last year's E3 has been the most important one so far throughout the whole city project's history. But this year's one is going to be the most important one ever for us too. We have really prepared a strong show.
So if you are able to cancel L. A. In June year, please feel invited to visit our booth. If you are not able to, you can follow our online channels. Thank you so much and feel free to ask questions.
We have microphones available. So should any of you be willing to ask a question? Good morning. What is the schedule of construction of your new building in Jerzyloinska Street? Well, we'd like to move very fast.
We're not sure if we're able to do that though. This transaction was finalized on the December 31. Some of the space has already been released to us. We are waiting for the release of the remaining part and we're working on a concept. Now this should take us a few months.
Later on, we will be applying for all the necessary permits and authorizations, and we will be initiating the actual works. I'm not sure if it should happen very quickly, but we would like to have it as soon as possible to start producing there. We have the first employees working there already in these places that we received because there is an actual building there and it's functional. But we want to revitalize it like the other buildings we're working at. Does this mean you're going to have two fifty employees more than right now?
Well, that's the target and the total volume of the building. And this is not the end of our capacity. This is an additional pool. The office complex where we're renting 6,500 square meters has a further capacity available too. But with this real property of our own directly attached to the current office complex, there is a direct connection there, it gives us several thousand square meters on top of what we're renting already.
So this growth is it considered with Cyberpunk in mind or the next production? We're mainly next productions because the CP team is not going to grow that much anymore. But as a company, we are going to grow indeed. In our industry, creative capacities are in direct proportion to the team sizes because it's people doing and creating what we're selling. We don't plan to stop at a certain level.
And aren't you finding hiring new recruits difficult? Well, it's tough to say. It's always a struggle to seek new talents, but we've been doing that for as long as we've been around and we're pretty good at it. We have an experienced recruitment team. We have a well developed HR department, and we're doing it.
We continue to grow at a stable rate of more than 100 people a year, and we don't want to slow down. And what should we expect to see in the Trade First huge events like last year? Well, like I said, we want this E3 to be even stronger than the last year's one. Let me ask a different question now. Are your expectations as to profit margins, sales margins on CP changed because of the last earthquake in the realm of digital sales of games?
Are they or are they the same as last year? Well, changes to digital distribution help creators get a few percentage points more out of the retail price paid by the customers, but that's just a few percentage points. What influences our margins much more is the expected volume of sales. That's the thing we are fighting for. The more participation we get in the retail price, the easier we will find to generate revenues, but actually sales volume is fundamental.
Your strategy also stated that you want to move beyond gaming only with your IP, that you wanted to move not only in the gaming culture, but stretch beyond. Have you implemented any activities in that regard? Yes. We have these projects underway, but we are proceeding with a high degree of reflection rather than caution. We don't want to be too scattered around.
Our core business is games. We are very much focused on that, but we are developing a portfolio of merchandising products based on Witcher and the same is going to be true for CP. At the end of last year, we registered a company to operate our brand. So it's relatively low level of business as compared to our core business, but its aim is to put some order to products branded with Witcher or Cyberpunk licenses. But it's merely a step into the future.
Next question. Recently, your CEO confirmed you want to release yet another game until the year 2020. When was this project launched? Is it underway? Yes, the project is underway and we are planning to do just that.
Our strategy has been announced three years ago and we continue to reevaluate the situation aiming at products that are going to meet the gamers' expectations or go beyond gamers' expectations and generate the some business for us. So the efforts are underway. These plans are still valid, but please do not draw conclusions as to what kind of game this is going to be just yet. I wanted to comment on this last question. Are we discussing a totally new game?
Or are you considering reviving an old one, porting an old one? No, definitely, it's not going to be a project to port an old game. We are discussing new content. It's too early though to go into details just now. In terms of communications, we are very conscious in focusing on Cyberpunk only.
This is obvious. We wanted the whole world to listen just about what Cyberpunk is or what it is going to be because then it translates into hype and sales. Any sort of scattered communications is counterproductive from the business point of view. We are doing a lot of things. We don't communicate.
And I'm not saying another cyberpunk product is or is not being developed. It's just that there are a few things we're not discussing just yet because the time is not right. Another question relates to the split of revenue from GWENT and Thronebreaker. What was the split in Q4 when generated higher revenues for the group than Thronebreaker? And is that a significant difference in these levels?
Yes. GWENT is a larger production than Thronebreaker, but we have not publicized details on that and we usually do not publicize such detailed data at CD Projekt. And if we could get back to the slide with development outlays.
76,500,000.0, that's a Gwent plus Thronebreaker, 12,000,000, that's already depreciated level. So 178,000,000 in fact of expenses on new productions, new projects, mainly Cyberpunk. That's the biggest chunk of this amount. I wanted to ask about Cyberpunk. 400 people are working on it.
How many are working on the next production from the strategy? One order of magnitude less.
Do you
agree with the assumption that E3 are a good moment to announce the launch of the game? Yes, we agree with this assumption. E3 first in the industry of developers of big games are the best moments for big announcements of big launches during the Will anyone accompany you, some artist, pop artist at E3? We prepared some surprises for E3. But no, it's not going to be any pop artist.
And now down to earth topic. You have a dispute with Mr. Sapkowski. And what is the stage of this dispute? Will it end with a settlement?
We can't comment on that. Once we've arrived at a point where we are ready to communicate this, we will do so. But for obvious reasons, until the topic is ongoing and unclosed, we can't comment on it. Last question. Cash level has been increasing in spite of production expenses.
What do you think about sharing accumulating accumulated profits distributing accumulated profits? Well, we are we can share. The dividend paid out two years ago wasn't big. But generally, we have nothing against dividends, but we don't have a dividend focused policy. We're convinced that this is not a good point in time to think about dividends because we are ahead of a lot of expenses and intensive work.
So
dividend should be like an award after a big success and not ahead of a success. But that's my view and simply it's a dividend policy that we don't have. I have nothing to add here. Cyberpunk launch is the most important thing for us right now. Katz Perkopprone?
Two questions. One financial, the other one more strategic. The first one, expenses on R and D. They slowed down in August, so million as launches vis a vis Q1 and Q3. Why?
And is it a reference level for the next year? And question two, probably you're following Eclipse Legends, Atolektronika's success. And the strategic question is whether there are any strategic elements in the game that could be used in Cyberpunk. And I'm not talking about Royale, but about location and figures, the system of figures that was presented during Cyberpunk Trailer. As regards
R
and D expenditures and the distribution last year, Q2 and Q3 were of higher value because of preparations for fares, E3 and Gamescom in August. So that's why it was more intense. Q4, you could probably say it was more calm in those terms. Whether it's a good level for the future, in a way, yes, but there's value is never constant. First of all, we employ more and more people, so the expenditures have been growing successively.
And the closer we are to launches or big events, the more intensively we work. And as we close to a launch, expenditures grow. You could see this before GWENT launched last year, related location. So it's grouped in a short period of several quarters and it's high the expenditures are high because each game is big. We translate it into several language, so you can see this it's reflected in expenditures.
The answer to the second question is sort of bypassing that developers work for us. They play almost any game and we analyze other games as well. But to tell you the truth, I know of no such details. That's the truth. Cyberpunk is quite advanced.
Plus, it is in our DNA. It's not our first response to draw on other productions. Of course, inspiration is important, but I don't know what is the case here. So well, Cyberpunk is really very much advanced, so it might be too late. Albert Prokitsky, Wrong Term.
Well, my colleague actually asked the question about multiplayer because I wanted to ask you how you perceived what Epic Games did with Fortnite. Is it a threat to you as producer of AAA games or maybe in the future, you will like this format. Well, it's not that we don't like free to play in this format. Each format has its own users. Each business model has its users.
Free to play have been doing really well. Some games match this model well as well. Our single player games do not match this model. We believe that our offer for players is and will be attractive. What we have to offer is a very concrete entertainment and we are not competing directly with such games.
Well, they say Fortnite has extended the number of players and that's probably true in this context. It's good news for us. But like I said, it's a very different kind of entertainment. We offer something different. Is it possible for Cyberpunk to be cross generation?
Will it be available on new generation consoles? Yes, absolutely. We already have such a plan. We already said publicly that our technology was developed thinking about new generation. Well, the generation hasn't been announced yet, but red engine has been developed from scratch to make sure that it can be developed from generation to generation.
As a result, if there's an opportunity for us to issue launch cyber plans for another generation, we would want to do this probably. And another question. We've heard that as regards new generation, the price will be increased for AAA from 60 to 80 even. Do you know anything about this?
No, we don't know anything about that. I wanted to ask you another question about this new upcoming project. You said the team is an order of magnitude smaller than the Cyberpunk team. For how long have they been working on this project? Well, it depends on how you define it.
Conceptual well, no, I don't really want to get into details. Well, the stage at which the spending is substantial already. Well, the spending is not substantial yet as compared to Cyberpunk. But please do not draw unproven conclusions. It doesn't have to be again comparable to Cyberpunk or which are free.
The cost doesn't have to be comparable. Yes, but let's say that the employment level is 90% to 10%, then what's the spending? No, we're not planning team size too much Cyberpunk. Our concept is different even though the quality is going to remain stellar. There is no doubt to that.
All right. Thank you. Hello, Pramodzinski. What are your marketing plans for The U. S.
Market? Are you going to go higher than for Witcher three? You're talking about Cyberpunk. Yes, indeed. We plan a larger campaign for Cyberpunk both for The U.
S. And all other territories this game is going to be released in. On all accounts, this is to be the largest title ever for us also in terms of marketing budgets. And another question, what are your plans for further development of your California studio branch? And are they going to hold development business there?
No, it's strictly business subsidiary there. We don't develop games there. We have game development in Vancouver though. They are working together with the Bratwaffe team, while California only has business marketing support and GOG support to an extent. I wanted to ask about GWENT and the first update starting this year.
With these updates, have you seen significant KPI increases? Well, we have never publicized the detailed KPIs. But yes, we do see increased sentiment in response to Gwent. For some time, you have been taking preorders for stock cards. The package cost some PLN 150.
Could you please tell us some more about the interest levels you are receiving for these preorders? Are you going to launch these preorder campaigns more times a year? Well, we are getting really nice interest levels. We are very happy with that. We have some targets set forth before that launch.
These are hard to measure though because the launch has not yet happened. Some people might decide to purchase these packages after the launch. But for the first few weeks, the figures have been matching our expectations. Are we going to do that more often? Yes, that's the plan to release these packages several times a year because it's a really good promotion.
And today actually is the very last day for you to purchase these promotional Kaggs to go with the tomorrow's release. And the last question as to Esports and GWENT. Before you said you used to say it's too low a scale, but recently you held GWENT Open and there is this GWENT Masters event planned to be a culmination for all those last year's tournament. What's the date? We have not announced any specific dates yet.
The last tournament has just finished and we must be aware that what we've been doing for eSports GWENT tournaments serves more as a community building exercise promoting playing GWENT as such. And that's the concept that we want to follow in the future too, just like described in the various stages leading up to the final. And as to the cash sitting in your accounts, I understand you want to finance Cyberpunk marketing activities with your own resources. Well, much of that marketing is going to be prefinanced by final distributors and then discounted from our loyalties quite similarly to what was in place for Witcher three even though the market is in a different place as the digital distribution share is going to be much higher even than in Witcher one and brick and mortar distributors have no profits on games sold via digital distributions, which is why they limit their marketing budgets as they don't want to finance our sales through online channels, which is only to be expected. But they will continue to contribute visibly when talking about pre financing of campaigns because later on, it will be discounted one to one from our royalties, but we don't have to spend the money outright.
I wanted to ask about new distribution channels and their impact on your business. Here, I mean the streaming platforms for instance that have been announced recently by Google let's say, wouldn't a subscription service be a burden on your margins? Well, actually any distribution channel extending our ways of approaching gamers is a good thing to us. So we create content. So any method that helps our content, our demanding content reach the players and each idea that helps us reach more and more players with these games is very good.
Well, we don't know much yet about the subscription model though. It's difficult to comment on it. But we are optimistic when talking about those recent announcements because for us, it's an opportunity to further grow our customers' base. We are talking with Google, obviously we are, but it's too early to be discussing specific business models. And another question related to GOG.
It seems that GOG results on the operating results level are mediocre to poor because the year was finalized with a loss for them. Why is that? Do you see impact of these market trends like shrinking distribution fees? Is this a reason for this poor GOG performance? No.
When talking about last year's results, the market changes didn't yet have a chance to translate into GOG operations, but the GOG was mainly affected in the first half of the year. That was the negative currency exchange rates. And then participation went that remained on the homecoming stage for most part of the year, thus limiting the revenue component of this project. And another factor we are not discussing all that strongly, but last year actually GOG put in a lot of energy working on new technologies to support the web store. So these are attributable to development efforts, but it also engages GOG staff also inflating the general management and administrative costs for this team.
While we have not yet seen positive results from that, I hope we will be able to do that and to publicize that soon. Gesmierczak, I have two questions. The first is related to GWENT. Are you even considering in your game as a service model to include a monthly subscription model when the mobile version is launched already? These models are out there already.
We don't have much data about how they function. But apart from purchasing these kegs, there are monthly subscription offers out there with paying an ex sum, which sounds horrendous, recalculated in the Polish lot is in local purchasing power, but it's like $40 a month. So are you also considering this premium option for your users? Then it seems not as fair to other players because the game is paying quite a lot each month, get preferential conditions. As a principle, we are really focused on our business models and our offer for the players to be fair, because it's an absolute foundation of our philosophy and strategy.
We are considering multiple options though. The ultimate content of our games and the business models implemented is just a piece of what we're considering. It's a non answer of sorts that we're considering everything and anything because only some of these considerations lead to further commercialization, but I'm not going to be able to tell you more as for now.
Konrad Krasovsky, Bloomberg News. I have one question. I take it we are close to Cyberpunk launch. We will not say exactly when it's going to happen. We're waiting for a delay.
But this would imply that part of the team of Cyberpunk will be released. Well, there are going to be updates. So will they be working on a new AAA game? How fast will it happen? Will it accelerate the project?
And during the last conference, the CEO said that you weren't satisfied with the quality of Cyberpunk product. What about now percentage wise? We are not thoroughly satisfied yet because the game has been acquiring top quality or acquire top quality at the very end. So we're not there yet. But in terms of our idea and effective transfer of team after Cyberpunk has been finished, well, we have a certain idea, but it's not related to a single game only.
I can't talk about this right now because I would have to tell you about all the ideas that we have after Cyberpunk. Some of them are in the pipeline more or less, but we attach a lot of attention to making sure that after Cyberpunk is finished, finished transfer to new projects should be natural. And while people should be able to work effectively, it's important from the company's point of view. But it's also important for them not to wait too long before they start working creatively. We have an idea behind it.
We are working on it and thinking about it a lot. The plan is there. I have one more question. Mobile Gwent that you announced, is it what you announced was setting up Spocco? And they have an idea for a project.
Is this the idea? No. Are there any other questions? In the back. No, no questions after all.
Thank you so much, ladies and gentlemen. After the first quarter, you're invited to teleconference and then E3 on the June 11 in L. A. Thank you so much.