Thank you and welcome to Albermarle's 2020 Sustainability Webcast. Our latest sustainability report was released yesterday after market close and you'll find the report and ESG data demo posted on our website under the sustainability or sustainability section. Presentation materials for this webcast are also available on our website under the investor relations section at albiquant.com. My name is Meredith Bandy. I am the Vice President of Investor Relations and Sustainability at Alamo.
Joining me on the call today are Kent Masters, our Chief Executive Officer and Scott Tozier, Chief Financial Officer. After our presentation, we'll have about 15 to 20 minutes for Q and A and on the upper left hand side of your screen, you'll see a tab with open questions. Please enter your questions there for the Q and A session. Turning to the 2nd slide, as usual some of the statements made during this call including our targets, expected company performance and proposed projects may constitute forward looking statements within the meaning of federal securities laws. Please note the cautionary language about forward looking statements contained in this presentation.
That same language applies to the webcast. Turning to the next slide, please note also that some of our comments today refer to financial measures that are not prepared in accordance with GAAP. With the continuation of these measures to GAAP financial measures can be found in the appendix of this presentation. And now I'll turn the call over to Ken on slide 4.
Thanks, Meredith, and thank you all for joining us. Today we'll discuss the progress Albemarle has made implementing Sustainability initiatives and how supporting global efforts to create a more sustainable world links to our overall corporate strategy. Our sustainability report provides an overview of select sustainability topics, management approach and recent performance. Today we will highlight 4 key updates in our 2020 report. First, we have set our initial environmental targets related to greenhouse gas emissions on freshwater use.
2nd, we have launched a new climate strategy to help us meet our climate goals. 3rd, we are aligning our efforts with global standards including the UN Global Compact and we are aligning our own sustainability framework will widely referenced UN Sustainable Development Goals. Finally, we are advancing important initiatives to achieve our long term sustainability goals and we'll talk about what our stakeholders can expect from Albemarle in 2022 beyond. Now on Slide 5, for those of you who may be new to our story, Albemarle is a global specialty chemicals company with market leading positions in 3 core businesses lithium, catalyst, and bromine. Lithium is our largest and highest growth business, however all three have strong long term growth prospects and healthy margins and we are accelerating growth, particularly for lithium and bromine.
If you turn to Slide 6, all three businesses are also driven by increasing sustainability requirements and regulations across a broad range of end markets. Our sustainability goals and objectives are focused on positioning Albemarle's operations for long term success and helping our customers achieve their sustainability goals. Albemarle generates about 50% of net sales from products that enable reduced greenhouse gas emissions for increased resource efficiency. This includes net sales from refining catalysts and lithium used in energy storage. Our refined catalyst enables refiners to produce more product from each barrel of oil, reducing waste, improving efficiency Removing contentment from sulfur and nitrogen from transportation fuels.
In fact, we estimate that our catalyst avoids the emission of about 10,000,000 tons of sulfur each year. Our lithium products enable the reduction of greenhouse gas emissions primarily through the adoption of battery powered electric vehicles. Our boating business also enables safer electrification. For example, terminated flame retardants save lives by preventing fires related to electronics used in homes, industry and transportation. Now to Slide 7.
Earlier this year we incorporated sustainability more explicitly into our long term strategy. Of strategy is founded on 4 key components. Most importantly for our discussion today is to advance Sustainability also plays a role in other aspects of our strategy. For example, to grow profitably by executing high return growth projects at Aggressively lower capital intensity. This approach allows us to grow profitably while meeting customers' demand for sustainable products.
To maximize productivity by driving continuous improvement across our businesses including operational efficiencies from reduced energy and water intensity and to invest with discipline by allocating capital to our highest return opportunities while managing risks, maintaining our investment grade credit rating and supporting our dividend all of which provide business resilience through the cycle. On Page 8, we've updated our sustainability framework to align with this strategy and the current environment. This framework is based on the materiality assessment we completed in 2019 and includes 3 key pillars. 1st, natural resource management, to be good stewards of the environment and to use resources and materials responsible, people, workplace and community to take care of our colleagues and communities and sustainable shareholder value to foster the conditions necessary to create durable long term value. Over the past year the COVID-nineteen pandemic has increased our focus areas like business and financial resilience, particularly around supply chain management and business continuity.
We have also increased our focus on diversity, equity and inclusion in the workplace, in the supply chain and in our communities. The Albemarle Foundation has always been proactive with dollars and outreach to be under resourced in our communities and is well positioned to continue our efforts regards to racial and social equity. For example, more than 70% of our multi year educational initiative in Charlotte, North Carolina was distributed to minority led organizations. This sustainability framework also aligns with the work we're doing internally to launch our new operating model. Our operating model which we call the Albemarle way of excellence defines how we align, execute and deliver our strategy.
I'm excited to share more about this initiative with you in the coming months and in greater detail at our Investor Day this fall. On Slide 9, over the past 2 years we've accelerated our sustainability efforts to continue to build and maintain our industry leading positions. As you can see sustainability is not new to Albemarle but rather a continuation of many years of work. For example, we set baseline data and initial targets for environmental metrics like greenhouse gas emissions and freshwater use. We've invested in technologies to reduce freshwater use and improve resource yields in environmentally sensitive areas including the Florida Atacama, One of the driest places on earth.
In terms of community engagement, in Chile we signed collaborative agreements with local indigenous groups including the Council of Atacominos Peoples which represents 18 indigenous communities that live around the Salar. These agreements are based on the UN Declaration of Human Rights Principles Encompassed in the Indigenous and Tribal Peoples Convention which recognizes indigenous people's right to self determination. We are honored to partner with the indigenous communities of the Salar. For instance, Chile was hit especially hard during the pandemic. This year several of our communities dedicated Albemarle funds for COVID-nineteen relief including testing services, healthcare and contact traceability.
Over the past several years, we've invested time and resources to build our financial and business resilience including improving cybersecurity, implementing a single ERP system and completing a successful sustainable cost savings program. During the COVID-nineteen pandemic these investments proved their worth. We were able to continue to operate throughout the pandemic. We also generated operating cash flow, maintained our investment grade credit rating and improved our balance sheet. We are especially proud of our progress on safety.
The success we've seen in improving safety is a roadmap for the sets we plan to achieve in other areas of sustainability. In 2016, we launched our Journey to 0 safety campaign to create a common safety culture across our organization. In 2019 we set the initial target for top quartile occupational safety performance relative to our American Kinsey Council peers. I'm proud to say that we achieved that target 2019 and again in 2020. Now our revised target is for top decile occupational safety performance relative to those same peers.
We are well on our way to achieving that goal as we continue to work towards 0 harm at all of our operations worldwide. Today is a truism that a safe operation is an efficient operation and I believe the same could be said about sustainable operations more broadly. On Slide 10, this year in addition to our safety target, we have set environmental targets for greenhouse gas emissions and water use. These targets are meaningful stretch goals but they are also achievable for AltaMol. Over the next 2 years we will build the infrastructure needed to assess, measure and track progress against these targets and other material sustainability topics.
These include executing a portfolio of projects to deliver improved sustainability performance. Our midterm goals are to reduce the carbon intensity of our catalyst and bromine businesses by a combined 35% by 2,030 in line with science based targets. Our catalyst and bromine businesses operate in pure markets with long term growth rates roughly in line with GDP. We are targeting these 2 businesses to realize greenhouse gas emission reductions in line with the well below 2 degrees Celsius requirement defined in the Paris agreement. The lithium market is forecast to grow by more than 20% per year through 2,030 Driven by the adoption of electric vehicles and electrification more broadly.
Against this background of high growth, the target for the lithium business is to expand our capacity in a carbon neutral manner through 2,030. We expect to meet these greenhouse gas emission targets through a combination of grid greening, efficiency improvements at existing plants and in the case of lithium design improvements at new plants. We also plan to reduce fresh water intensity by 25% by 2,030 in areas of high or extremely high water risk as defined by the World Resources Institute. This allows us to focus our investments and efforts where it matters most. For Albemarle this includes our lithium operations in La Mecca and the Salar de Atacama, Chile and our Bromine operations in Jordan.
We expect to achieve our targets to reduce water intensity through efficiency improvements at existing plants and the new thermal evaporator installed at the mega. By 2,050 we plan to achieve net zero carbon emissions in our operations. We support the goals of the Paris Agreement to avoid dangerous climate change by limiting global warming to well below 2 degrees and our pursuing efforts to limit it to the 1.5 degrees Celsius. Now Page 11, Let me talk about the climate strategy we just launched to support our targets. Reducing greenhouse gas emissions is not only the right thing to do, But it will also strengthen our competitive position, improve our operational efficiency and create value for our stakeholders.
Reducing our carbon footprint is a multi decade journey of continuous improvement. Albemarle's climate strategy lays out our plans for achieving our greenhouse gas targets. These include measuring progress and improving results. We are building the systems and processes to improve our business and reach our targets. Enabling our customers' sustainability ambitions.
We are partnering with strategic customers to improve supply chain sustainability and collaborating with stakeholders by aligning with global frameworks to increase transparency and working with industry partners to develop sustainable solutions to climate change. All three of our businesses contribute to reduced CO2 emissions. Most notably 1 kilogram of CO2 emitted in lithium production delivers more than 50 kilograms of CO2 avoidance per year when used in EV batteries. Catalysts and bromine also support greenhouse gas reductions. The use of our hydro processing catalysts enables refiners to operate at much lower temperatures Thereby reducing energy consumption, greenhouse gas emissions and improving yields.
Bromine used in bromobutylrubber extends tire life, reduces fuel consumption and minimizes CO2 emissions. Now let me turn it over to Scott on Page 12 for more detail on the climate strategy.
Thanks, Kent, and hello everyone. Thanks for joining us today. Our team is executing a portfolio of projects to reduce our carbon footprint and achieve our climate targets. Current projects focus on avoiding and reducing emissions, for instance by improving heat integration and switching to green or renewable energy use. Over time, we also plan to evaluate emerging technologies and their benefits like carbon capture and storage and to identify potential forestation projects to neutralize or offset emissions.
We are building these current projects into our annual and long range planning processes. We're also improving our capital allocation processes to identify ways to improve sustainability as we maintain existing facilities and develop new operations by questioning the impact of these projects. Finally, we're in the process of evaluating the use of an Internal notional value for the social and environmental cost of CO2 to balance traditional financial parameters and our strategic and capital allocation decision making. Turning to Page 13, Strategic customers are turning to leading suppliers like Albemarle to grow their businesses responsibly and to ensure the sustainability of the supply chain. We are currently engaged with a number of customers on projects, including assessing scope 3 emissions and creating life cycle assessments for our products.
We're also partnering with customers through industry organizations Like the Institute For Responsible Mining Assurance or Irma. Irma's mine site assessment offers objective, Independent third party verification of industrial scale mine sites against a comprehensive standard agreed to through a collaborative multi stakeholder process. It's that multi stakeholder model including producers, Consumers, labor, NGOs, and communities that is key for automotive OEMs like BMW, Daimler, and Ford To achieve their sustainability goals and meet the needs of consumers and end users. Albemarle's Solar site was the 1st lithium mine in the world to complete the IRMAA self assessment and the 1st mine of any kind in Chile to do so as well. Later this year will begin a 3rd party audit for the solar site and we plan to expand the Irma certification process to other mine sites in our resource portfolio over time.
Turning to Slide 14, We continue to engage with our stakeholders, including our employees, customers, suppliers, government partners, Communities and the investment community to affect positive change and minimize disruption as we progress on our sustainability journey. We are aligning with industry leading standards including the Carbon Disclosure Project or CDP. CDP's global disclosure system is widely considered to be the gold standard of environmental reporting. We expect to begin reporting under CDP system in the second half of this year. As we advance our CDP reporting, beginning in 2022 will also evaluate disclosure under the Task Force on Climate Related Financial Disclosures or TCFD.
And finally, we'll engage with organizations like the Science Based Targets Initiative to identify opportunities to improve our targets and climate strategy over time. As you'll see on Page 15, we're also aligning with other global standards like the UN Global Compact. As we announced on our Q1 of 2021 earnings call, We signed the UN Global Compact, a voluntary leadership platform for the development, implementation and disclosure of responsible business practices. The largest initiative under the UN Global Compact is the implementation of 17 sustainable development goals. On page 16, to determine the right subset of these goals for Albemarle, We engage with employees and our board for their diverse views through surveys, workshops, and discussions And the team identified the 9 key goals that best align with our business and corporate strategy, and they are good health and well-being, Gender Equality, Clean Water and Sanitation, Affordable and Clean Energy, Decent Work and Economic Growth, Industry Innovation and Infrastructure, Sustainable Cities and Communities, responsible consumption and production and climate action.
We aim to maximize each goal's positive impact and minimize any negative effects in terms of economic, social and environmental conditions. One of the key accountabilities we have is to update the UN on our progress each year, which we plan to do with our annual sustainability report. Now I'll turn it back to Kent to review the next steps of our journey.
Thanks, Scott. Moving to Slide 17, I hope our discussion today gives you a good sense of the significant progress we're making on sustainability and underscores our long term commitment to continuously improve our efforts. For the rest of this year and into 2022, our primary focus areas are first, as Scott described, to build the project portfolio and related infrastructure to track progress and ultimately achieve or exceed our sustainability targets and objectives. 2nd, to continue to partner with our customers on life cycle assessments, scope 3 emissions, site audits and other projects to meet their sustainability goals and objectives. 3rd, to progress our diversity, equity and inclusion strategy set initial targets to measure our progress on this important effort.
And finally, to continue to improve reporting and transparency, including CDP reporting and evaluating disclosures under the Task Force on Climate Related Financial Disclosure Standards. On 18, in summary, sustainability is a key part of our value proposition to stakeholders And is driven by Albemarle's 3 core businesses which are powering a sustainable future. With best in class resources and decades of experience in building and operating world scale chemical plants around the globe, we are well positioned to help our customers grow responsibly. As an industry leader, we are committed to accelerating sustainability initiatives to minimize risk and pursue durable long term value and to deliver strong financial performance and growth for our shareholders. And now we're happy to take any questions.
I think Meredith is going to facilitate that. Yeah. Great.
Thanks, Cat. So as a reminder everyone, please enter your questions on the questions tab on the upper left hand side of your screen. We do have several questions that have already come in on the chat. So we'll start with, couple questions from Lawrence Alexander at Jefferies. Wanted to ask what are the trade offs associated with the female stats targets that we've announced?
What would be the increased cost or the benefits related to these targets?
Okay. So I would You know, with the long term I think we'll have to be aggressive about identifying projects to help us meet these targets. In the near term There is some low hanging fruit that has good financial returns and then we'll be going after the low hanging fruit first and those we've got a list of projects that we think will have good returns around that without getting into the sustainability metrics that got discussed, just kind of pure financials and then the other piece is that this is really a key part of the value proposition to our customers. So our customers are asking for these sustainable products, particularly in the lithium business and the electric vehicle market. So we think it's a Fundamental part of the business and actually gives us a competitive advantage if we could be kind of the first mover in this space.
And Ken, I would just add that this does These initiatives and our strategy around sustainability doesn't change our expectations on returns. And so as we're looking at new projects internally from an organic growth perspective, we continue to expect that those are going to generate at least 2 times our cost of capital at mid cycle pricing, including the sustainability projects overall. Thank you.
A follow-up from Lawrence is, has the ESG review led to any change in our lobbying activities? It looks like local contributions more than doubled last year.
I'll take that one. So Because of the election cycle, it may look like our political contributions doubled, but I think if you look back over time, we're pretty much right in line. We are after the January 6 riots at the Capitol have put deliver contributions on hold and are reviewing our approach with those. We're also engaging with governments around the world as they look at both sustainability as well as other initiatives around indigenous peoples and communities to make sure that we're well connected into what's happening there.
Alright. So our next question is coming from David Peitlinger at Deutsche Bank. How water intensive are our lithium operations in Chile? How impactful is it on the local community?
Right. So I'll take that. So in Chile specifically, actually the processing buying from the salar and the way that we're doing it using solar power is At least water intensive, particularly fresh water intensive method. We actually don't use fresh water processing lithium at the Salar. We do use some fresh water in La Negra and the conversion facilities, but we and there's some fresh water used at the salar for mainly drinking water in our camp and then for washing some equipment, but there's actually no freshwater used in Processing lithium at the Salar itself and we're a very small user of fresh water there and then the Kind of a little broader question around the brine, we've developed geological models around the solar and the brine that we pump to make sure there's no impact from the brine that we pump on the freshwater pools, so we've got years, 20 years or so of data around this that we've shared with the government in Chile and other associations and there is no indication that the brine that we're pumping impacts the freshwater Looked at in the circle for 1.
Ken, just an additional point of information, I mean, we obviously recognize that Chile is a high risk area in terms of freshwater usage and as a result during our expansion at La Negra, you hear us call it La Negra 3 and 4, We actually invested over or investing over $100,000,000 for thermal evaporator to be able to double our capacity without increasing our freshwater use.
Okay. So next questions come from Ben Kallo at Baird. Then asked some of your competitors plan to produce green lithium. How does Albemarle's lithium production compare to others' sustainability?
Yes, I mean we're pretty focused on this and we'd like to at least differentiate between brine and hard rock, so the brine production, to our knowledge, and today is the most sustainable from say Salarna Atacama and as we process at Allegra, from a sustainability standpoint the greatest lift impact is made today because of the solar power that is used at this large, we described that. Hard rock processing that we do at the mining in Australia and then the conversion that we do in China is not as is quite as sustainable, we've made a lot of efforts in greening the power grid, improving water usage there, a number of things that we've been able to do to improve that I believe and I think it's been documented that the frying processes that we use at the Solana Atacama and then the conversion to La Negra Is the greenest commercial operations today.
Okay. A follow-up from Ben, how does Albemarle think about recycling? And I think you're specifically thinking about lithium, but then probably other areas of recycling as well.
Yeah, I'll take that one. Recycling is going to be an important part of the battery supply chain As batteries become more and more important to the automotive industry, used cars obviously are going to end up needing someplace to put those batteries, so recycling is going to be very important as an end use and so we're actually working with various innovators as well as customers to look at the most effective ways to recycle particularly the lithium stream that comes out of the recycling and so we believe by the end of this decade it's going to become a meaningful part of the supply for materials into new batteries that will be able to take our virgin material, combine it with recycled material, and create new batteries. There's other places though that recycling is important too, so in the manufacturing of batteries there are waste streams that come off of that that can be recycled within our plants, there's ways to increase the efficiency of those plants To be able to use more of the lithium that goes through that process and as a good example of that where we've got some great experiences in Magnolia, Arkansas with our bromine business, which they have a very high utilization of the bromine molecule that they get out of the ground due to multiple recycling streams that they have in that plant.
In fact, their efficiencies are above 95% in terms of their is so very good recycling of that material as well.
Yeah, we also think that kind of the core processes we have in conversion of our raw material are the same process you'll need in recycling, so we think there's definitely a role for us to play in that particular process as those screens become available.
Okay. So a couple of questions from Joel Jackson at email. So Joel asked to please discuss c level compensation linkage to ESG initiatives.
I'm sorry. Say it again?
And executive compensation as it's
linked to ESG. Okay. Sorry. I thought you said C level.
Feedback and climate Yeah,
that's a little. So executive comp related to this. So we have those discussions with our executive comp committee this year and we considered kind of put some measures in there, but we didn't think they were mature enough. So we currently have safety as a measure that impacts The annual bonuses of executives actually all the way through the organization, it goes all the way down to the Manufactured floor, so and that piece and I think over the long term we'll be including more measures in that and then So that's probably the closest link that we have that we have to date but the executive comp committee is pretty focused on that. I think either this coming year or the year after that, I mean it depends on the maturity of the measures and where we are, but I expect to see them as part of our Short term and even the long term plan B.
Alright, let's see. There's a number of questions. I'm kind of going to merge a few. So, there's some questions about the initial targets and activities for the different businesses to meet these targets and then sort of longer term in terms of things like forestation and carbon capture and storage. You just want to give a little more granularity on the projects we're working on?
Yeah, so I think I mentioned before some low hanging fruit. So there's projects that we have identified and that we are working on and it's a matter of kind of prioritizing We are kind of aggressively expanding our lithium capacity, we've got bromine projects that we are doing, we have and the traditional project we've been doing in Catalyst, so it's around prioritizing resources but there are a number of things. Scott mentioned the thermal evaporator that is kind of at the moment so that will be starting up soon. Other projects that we're planning, there are water recycling projects that we're doing at joint venture in Talison, there's some water processes and recycling programs at Jordan that we are doing and we're looking at and maybe it's we can call it sustainability, but there's a Salar yield improvement project where we think we can get more lithium out of brine that we do pump there and then make our operations more efficient from almost from every perspective. So there's a number of projects like that and then longer term we'll be looking at things like as we green the grid, so we've done that from going from coal to natural gas in China as an example from our power sources, we'll be looking to move that to more greener resources, maybe even solar projects that we could do with some of our facilities and then longer term to get to the 2,050 target we'll probably look at other things like, you know, forestation project, things like that, but that's what that's further out.
In the near term, we're pretty focused on the low hanging fruit And the opportunities there.
Okay. So John Roberts from UBS asked, which is environmentally better lithium from Brian or lithium from North?
I think the environmental, the sustainability footprint is lower from Brian and that's from the way that we operate. I think when most people operate Primarily due to the fact that most of the energy that we use is solar, almost all solar.
Right, another follow-up from John. Are Alamo's ESG targets consistent across the US to Australia, Europe and China, are they customized to specific regions?
I would say they're customized to the opportunities that we have. So it's an overall target, it's not customized for a region, I wouldn't say, but it would be customized against the opportunity Where we see the opportunity to make those improvements.
Yeah, I think it's important to recognize we've got very diverse types of operations. So if I just focus on lithium, you go to the plant at Leidelsheim, Germany, they're operating in a much more mature market, not with the kind of growth they've been in operation for many, many years, so they have opportunities to actually reduce on an absolute basis their opportunity. If you go to the battery grade material, obviously that's an aggressive expansion mode and so making sure that we're doing all the right things as we're expanding to make sure that our carbon intensity doesn't go up is where the focus is there. So I think you'll see that, you know, depending on where we are in the business cycle also makes a difference.
Yeah, and there's an opportunity in lithium because of the growth if don't have any other businesses as we build new facilities, we want to make sure that we're incorporating all of
We think it's important for the global sustainability footprint that The growth that we have in lithium is enabling our customers to have significant reduction in carbon. And so again, there's a balance in terms of the overall value chain.
Okay. So follow-up from Ben, Callow at Baird. Switching gears a little bit and talking about Catalyst. Do you want to speak to any of the growth opportunities in catalysts in terms of things like renewable?
Yes, so I mean there are opportunities for us and conversion to crude to chemicals opportunities there and for renewable fuels as well, so our technology applies well in that space so it is a nice growth, it's a pivot, it's a little it's different than it's a similar technology but it is a little bit different but we can't we do produce those products today and we have a nice position in that particular space and we expect that to continue to grow and we're pretty focused on it from a strategic perspective
Alright, and then a little bit maybe on warming. Do you have any anything specific on the environmental impact for some of the end markets for farming and Fin has mentioned specifically oilfield, but maybe there's other impacts
Yeah, I'll take that one. So, you know, oilfield and the drilling fluids that are used to complete wells oftentimes used bromine compounds to do their density. What generally happens though is that that that material is actually largely recovered and oftentimes recycled. So again, we work with our customers to make sure that we're operating that in a safe way. The good thing about bromine is it's a salt based material and that the completion fluids is is just a dense brine so it's even if it does escape into the ocean it's relatively benign.
So at this time there's no further questions from the chat but I wanted to end on one that we get from investors is a lot and it's pretty straightforward. Maybe, Ken, if you could talk about how the board oversees our sustainability initiatives.
Right, so we don't have a sustainability committee at the board, but we've mapped all the elements of sustainability into the different committees and really all the committees except capital get involved in that, so probably the heaviest piece is with the HSE meeting where we map most things that are reviewed at all at the meetings quarterly with HSE, but there's an executive comp, we talked about that before, there's an element with executive comp and with audit around risk and then how does the overall responsibility for the overall program sits with government. So each of the committees look at the pieces that we map to them at the committee meetings they report to the Board overall and then the governance committee has overall responsibility for sustainability program. This has all been this is all mapped out and the responsibilities for the communities.
Alright, so I think at that time that concludes our Q and A session. I'll turn it back to you, Kent, for the closing remarks.
Okay. Thank you. Okay, thanks Meredith. And once again, thanks, thank you all for joining us today. We have leading positions in lithium, catalyst and bromine and Albemarle combines world class resources with the talent, Technical know how and strong customer partnerships to improve essential aspects of life including clean energy, food and fire safety and sustainable transportation.
In the context of doing business in the global marketplace for over 100 years, sustainability has proven to be a successful strategy about bridging social and environmental impact with economic performance, Albemarle demonstrates that doing what is right creates durable long term value. Thank you for your interest in Apple Mall and we look forward to speaking with you again soon. Thank you.