AptarGroup, Inc. (ATR) Q2 2012 Earnings Report, Transcript and Summary

Ladies and gentlemen, thank you for standing by. Welcome to AptarGroup's 2012 Second Quarter Results Conference Call. (Operator Instructions) Introducing today's conference call is Mr. Matt DellaMaria, Vice President, Investor Relations. Please go ahead, sir.

Thank you, Jonathan, and welcome, everyone. Participating on the call today are Steve Hagge, President and Chief Executive Officer; and Bob Kuhn, Executive Vice President, Chief Financial Officer and Secretary. Steve will begin our call with an overview of our quarterly performance. Bob will then discuss our financial results in greater detail, after which, we'll open it up for questions. Information that will be discussed on today's call includes some forward-looking comments. Actual results or outcomes could differ from those projected or contained in the forward-looking statements. Please refer to AptarGroup's SEC filings to review factors that could cause actual results to differ materially from those projected or contained in the forward-looking statements. We will post a replay of this conference call on our website. AptarGroup undertakes no obligation to update the forward-looking information contained therein. I would now like to turn the conference over to Steve.

Thanks, Matt, and good morning, everyone. Yesterday we reported results for the second quarter that were in line with the updated guidance we issued a couple of weeks ago. We also announced that we completed the Stelmi acquisition in early July. We view this transaction as a very positive expansion of our pharma segments product portfolio, I’m happy to report that the underlying Stelmi business is doing very well and our integration work has already begun and that the customer feedback on the transaction has been very positive. Bob will discuss the financial impact of the transaction a bit later. The second quarter was a challenging one. Currency exchange rates had a significant negative impact on our sales and earnings. Also broad based softness in Europe affected each of our business segments, but on the positive side, we experienced strong growth in Latin America and Asia. Overall, we were able to grow core sales, in spite of the challenges. Thanks to our innovative industry leading products, our widespread global presence, and a variety of markets we serve and the dedication of our talented employees. Even with the difficult economic environment, I’m very encouraged by the level of project activity across each of our segments. Now looking at the segments – looking at our segments performance for the second quarter, our Beauty & Home segment primarily serves the fragrance/cosmetic and personal care markets. These two markets were affected by the slow down in Europe in this quarter. Project activity remains at good level for our Beauty & Home products and we participated in several new launches by customer this quarter, including several new fragrances, a new men skincare, several new cosmetic products launch using our innovative dispensing solutions, including our fully recyclable airless pump. We also participated in several hair care…

Thank you, Steve, and good morning, everyone. I'd like to comment first on our consolidated results for the quarter and year-to-date, and then discuss the segment results for the quarter. As announced in our press release, reported second quarter sales declined 6%. But as Steve mentioned we’re in a challenging exchange rate environment. Currency exchange rates had a significant negative impact on second quarter sales of approximately 8%. And therefore on a constant currency basis, our core sales grew 2% and this includes a decline in custom tooling sales of approximately 1%. From a geographic standpoint, our European operations represented approximately 53% of sales this year versus 58% of sales in the prior-year, while our U.S. operations accounted for 29% of sales versus 27% last year. I would like to take a few minutes to speak about foreign currency transaction effects and their impact on our results in the quarter. We defined transaction effects as inter-country sales and purchases transactions involving two different currencies. If we take a look at the changes in currency rates in the quarter, the euro devalued versus the dollar, the euro devalued versus the Swiss franc and the Brazilian real devalued versus both the euro and the U.S. dollar. Some examples of transactions that we have in these currencies are the following. Some of our pharma products are manufactured in Switzerland and sold to certain customers outside of Switzerland in euros. Since we don’t produce our entire product portfolio in Latin America, we’re still importing certain components and finished goods from both Europe and the U.S. And lastly, we still import to the U.S. certain components and finished goods from Europe. Based on our calculations we estimate that the positive and negative transaction effects offset each other in a quarter. This means that the translation…

(Operator Instructions) Our first question comes from the line of George Staphos, Bank of America. Your question please.

Hey, good morning guys. It’s actually Benjamin Wong filling in for George. I think you talked about the growth in Fragrance/Cosmetic and Beauty & Home, but can you also talk about the personal care and household within that segment?

Sure. The personal care results were flat in the quarter overall and for the year it’s up about 1%. Household was down about 3% in the quarter and is up about 2% for the year.

Okay, I appreciate that. And then, at this stage does the weakness you’re seeing does there appear to be underlying demand weakness or perhaps inventory destocking?

We think it’s a little of both, Ben. I think it’s primarily due to some consumer demand and again most of that is sitting in Europe from the demand side. Our cost as I said, our customers are still a bit cautious so there maybe some inventory contraction. On the positive side we’re still hearing our customers introducing new products and our project portfolio continues to be very positive. So it’s a bit of a balance on both of those.

Great. Thank you.

Thank you. Our next question comes from the line of Ghansham Panjabi from Robert W. Baird. Your question please. Ghansham Panjabi - Robert W. Baird & Co. Incorporated, Research Division: Hey, guys. Good morning.

Hey, Ghansham.

Hi, Ghansham. Ghansham Panjabi - Robert W. Baird & Co. Incorporated, Research Division: On the OTC side under Pharma, it looks like you had pretty good momentum in that business over the last several quarters, you mentioned core sales down 2%. Can you just give us some more color there, what's happening?

Yeah, I think first of all – I think Ghansham, it’s a good point because if you look back we had really outstanding growth in that segment last year, in second quarter alone last year we were up 26% on a year-on-year basis and in the third quarter of 2011 we were up 32%; so we had a very strong year. What we’re seeing a bit this year is there’s been some inventory -- there was some inventory replenishment last year that isn’t occurring this year and also right now we’re seeing a little bit of a slowdown coming from our customers as they serve the eastern European markets. So again, it’s coming off very – I would say high comps from last year and we think it’ll continue into the third quarter. Ghansham Panjabi - Robert W. Baird & Co. Incorporated, Research Division: Okay. And so just on that same thought, a lot of your customers products also get shipped around, you mentioned some FX mismatches for you guys, but just from your conversations with them, do you have a sense as to how much of the slowdown in Europe relates to domestic Europe versus perhaps what's being exported to other regions, Brazil, China, India et cetera?

That’s a difficult one. I think what we’re doing is, we’re -- again our customers seem to be still very positive about particularly in the prestige fragrance markets, very positive about the upcoming Christmas season. So I think they are seeing some weaknesses particularly in Italy and Spain within Europe. So it’s not also just broad based, I think it tends to be more on-off markets. But again, I think it’s more what we’re seeing today is ordering being at the consumption level and again we had a very strong first-half of 2011 in the fragrance/cosmetic market, so I think we’re getting back to more consumption today. Ghansham Panjabi - Robert W. Baird & Co. Incorporated, Research Division: Okay, makes sense. Thanks so much.

Thanks.

Thank you. Our next question comes from the line of Alex Ovshey from Goldman Sachs. Your question please.

Good morning, guys.

Hi, Alex.

How you’re doing?

Well, thank you. On the fragrance/cosmetic side and Home & Beauty is there a way that you can talk to what the organic volume trend you’re seeing currently is in Europe and whether there is any visibility from your customer base around how that trends over the next couple of quarters?

On Europe, again most of our -- and most of our movement is going to be volume based. In Europe we were down about 8% on the fragrance/cosmetic side. So again I would estimate that most of that would be volume; but as Steve mentioned the first-half was very strong and slower little bit in the back-half. So I think that’s a little bit of what you’ll see in there.

Thanks Bob, but just on resin, I didn’t hear you talk to it. I know usually it’s not going to be a big driver, but polypropylene did come-off very materially. Are you expecting any impact from resin over the next couple of quarters?

Yeah, I mean, certainly we’ve got that built into our assumptions, I mean, we had a slight positive in the second quarter on the lag and we’ll be catching up on some of that going into the third.

There shouldn’t be a tailwind for you in the third?

Yeah.

Yes.

Got it. Thank you very much

Thanks.

Thank you. Our next question comes from the line of James Armstrong from Vertical Research. Your question please.

Good morning.

Hi, James.

Hey, James.

Two questions. First; the volumes in Beauty & Home has slowed a bit, how much of the slowness would you attribute to Europe and is there any other specific areas that are seeing softness?

I think, frankly on the Beauty & Home area almost everything we saw in the quarter was all Europe. The rest of the regions frankly and again we’ve pointed this out kind of the opening comments, we are very strong both in Asia, Latin America and we were actually seeing increases in the United States in the fragrance/cosmetic area, so it was primarily Europe and again I do want to come back and as Bob mentioned that’s against a very strong second quarter last year in that segment. So it’s not totally unexpected that we would see difficult comparisons.

Okay, very helpful. Switching gears just a bit; as the global economy muddles through a bit, have customer’s demand to innovate been impacted especially in Food & Beverage?

Actually I think what we’re seeing is, the customers continue to take a look at innovation as a way to differentiate on the market. So, what’s been encouraging to me, I have been in Europe several times over the last month and I was just -- I just got back from the trip to Latin America. We’re seeing significant project activity with customers looking at ways to cost effectively innovate their products. So from my perspective that’s actually very encouraging for Aptar going forward.

Okay. Thank you very much.

Thank you. Our next question comes from the line of Alton Stump from Longbow Research. Your question please.

Thank you. Good morning.

Good morning, Alton.

Two questions, I guess first off, on the currency front, it seems in the past that you always had a hedge with the cross region shipping and I think you mentioned in the press release that, I haven’t seen that hedge play out here recently. Is there any major factor that is keeping that hedge from -- is offsetting some of the currency pressure?

Yeah, again what you got Alton is, you’ve got some pretty wide swings inter-currencies even from the first to the second. So if you take the Brazilian Real for example it devalued almost 19% compared to the dollar in the second quarter, it was nowhere near that in the first quarter and it also devalued versus the euro. So as you can see as our business continues to grow in Latin America that negatively impacts any components or finished goods that we’ll import into that region. And the other side you’re starting to see for the first time really a movement between the euro and the Swiss franc, and one of our consumer healthcare pharmaceutical plans is based in Switzerland and some of the customers that they sell to outside of Switzerland and Europe the invoicing is done in euros; so that also is having a negative impact. Offsetting that and what is traditionally I’ve said that in the past has been our net import basis back to the U.S. from Europe and a big part of that in the past was some of our pharmaceutical components and finished goods. And I think what we’ve been talking about over the last couple of years is, we’ve been adding production capabilities in the U.S. so you’ve seen that positive hedge if you will decrease as we put more and more local production in the U.S. so lot of different moving variables which is what makes it somewhat difficult to predict on a quarter-to-quarter basis, but you had very different dynamics first quarter to second quarter and we’ll just have to see how it plays out in the third quarter.

Okay. Thanks, that’s helpful. And then, just secondly; on Stelmi acquisition obviously it’s in a bit different area than what your core business has been in Pharma, is there any synergy opportunities from cost standpoint or is this more of a top line synergy play?

I think it’s more of a top line. We do buy some elastomers, which is similar for our gasketing products in our Pharma business, but when we looked at it, which really is not a raw material or cost savings play. The synergies are we’re going to be able to reinforce the overall growth opportunities of Stelmi with our worldwide position, which I think will provide top-line and then also bottom-line side on a much quicker basis. And the other thing I think it’s important will be moving Stelmi away from a family health business, very front centric to now an international business, and our customers, the Stelmi customers that we’ve talked to, that’s a real positive and so we think that over time that will have also a significant impact.

Okay, great. Thanks guys.

Thanks.

Thank you. Our next question comes from the line of Chris Manuel from Wells Fargo. Your question, please?

Hi, gentlemen.

Good morning.

Good morning, Chris.

A couple of questions for you, first, if I could get back to the currency issue for a moment, is there any reason to believe that over the next -- I realize that things moved around pretty rapidly and demand level is going to shift at around a good bit in 2Q, and likely or I’d be a bit modeled here, 3Q, but through time, is there any reason to believe that sort of natural linkage between how you’re selling and doing cross border activities won’t sort of re-engage the natural hedging mechanisms that you’ve in place?

Yeah, I think, Chris, certainly as you said, it’s difficult because it’s all going to depend on what happens with all the currency rates and we tend to get all focused on the Euro and that’s kind of OTC in the press everyday. Certainly, our assumptions going into the third is that the dynamics that we saw on the second would repeat in the third, but we’d talk about that again in the third when it comes up, that’s our assumptions going into the third.

Okay, that’s helpful. Next question I had was with respect to Stelmi, I recognize it’s very, very early days, but, Steve, do you’ve any early wins or opportunities you can talk about whether it’s -- maybe opportunities that you talked to folks in other geographies where they’re present or when I look at some of the products that droppers and rubber stoppers and things that seems like a product area that would be very, very right for all of the very innovative solutions you guys typically provide.

I think, Chris it’s probably a little early to talk about the individual specifics, but what I found encouraging is when we talked to Stelmi’s customers about the transaction, they’re very positive and see the ability to grow. We’re taking an early look at where we may want to do some type of additional production using Aptar’s facility to expand the Stelmi line over the next six months to a year or whatever. So, the initial signs are positive, but we don’t have a specific project that I can talk to you about.

Okay, that’s helpful. And then last question is, I recognize you’re under a self-proposed lockout for repurchase, but would there be any reason to assume that you don’t kind of resume more normalize or purchase activities going forward?

Yeah, that’s certainly our plan for the third quarter is to get back to more historic levels of repurchases beginning in the third quarter.

Okay, thank you. Good luck.

Thank you.

Thank you. Our next question comes from the line of Adam Josephson from KeyBanc Capital. Your question, please?

Good morning, everyone.

Good morning.

Good morning, Adam.

You mentioned that sales were down 10% to the food market, I believe, what happened in that business?

There is a couple of things, actually, we had some significant tooling a year ago, so tooling -- of that 10% drop, tooling accounted for seven of that. So we’re actually down on a 3% level year-on-year. What we saw on that is we saw customers like Heinz, and if you’ve seen their financials, a lot of that has been driven out of the U.S. It has been actually a bit slow coming back into the period. So I think it is more of a timing issue than it is a change in the marketplace, Adam.

Okay, thanks for that, Steve. Bob, you provided accretion guidance just on the $0.12 to $0.16 on an annual basis, was that roughly in line with what you’re expecting before going through all the purchase accounting adjustments?

Honestly, the purchase price accounting adjustments are such a huge impact on that accretion side, we couldn’t even begin to guess, but if the question really is, are we seeing operating results consistent to where we were projecting? I would say the answer to that is yes, to even slightly positive. So, as Steve mentioned, we’re very happy with not only the way the integration is going, but the way the business is performing in 2012 and the outlook going forward. So, yeah, I’d say it’s positive from our projections.

Okay, thanks for that, Bob. And one more, forgive me if I missed this, but to what extent in volume in Europe taper off as the quarter progressed and has July been any better or worse than what you experienced in the second quarter?

We don’t talk so much month-to-month, but I can tell you that overall on a consolidated basis; sales are pretty linear throughout the quarter. April was a bit slower, but the May and June were pretty consistent.

Okay, thanks, Bob.

Sure.

Thank you. Our next question comes from the line of Mark Wilde from Deutsche Bank. Your question, please?

Good morning.

Hi, Mark.

Hi, Mark.

:

Actually we’ve seen pretty strong growth in both Asia and Latin America. We’ve had double-digit growth in both of those. And the second, again, I’ve to come back, it’s a smaller market for us. So it’s a little bit of the lot small numbers, Mark. But I don’t -- we’re not seeing any big change in the consumer side. In Latin America, what you hear from some of your customers is that instead of maybe 15% growth they’re looking at 8% to 10% growth. So there is a bit more conservatism I think on some of the customers particularly in Brazil, but in China we’re seeing it continue it’s very strong growth.

Okay. And do you’ve any visibility at this point or what -- some of those customers of yours are planning for the holiday season?

Yeah, actually right now it’s interesting when we looked at the backlogs. Backlogs actually look pretty good for the fragrance/cosmetic side. Our customers, this year I think will be even a bigger launch here for new fragrances and cosmetics than 2011 was. So right now our customers are saying they’re pretty optimistic about the Christmas season, but a bit cautious. So it’s an optimism trying to come back and engage where the consumers got to go, but we’re certainly not seeing anything like what we saw back in 2008 when all of a sudden everybody was getting really nervous and not doing any introductions.

Okay. And just one other question, it seemed to me in the first couple of quarters of the year that sort of the ramp up in food and beverage has been a little bit slower than I might have expected, do you have any thoughts on that?

It’s been a little bit slower than what we had actually budgeted. Some of this is kind of timing-based. For example, as we talked about last quarter, we’re on a product with Tropicana on their orange juice product. What Tropicana has been indicating is that the product sales that we’re on are doing very well. But they’re having some internal production problems in their filling plants in Florida. So, it somewhat delayed their uptake of the product, and they’re continuing to work on that. So we’re a little bit slower than that in some of the introductions, but outside of it with the new project activity and some of the new things we’re working on, we continue to be very bullish on.

And I think Mark, the other thing I’d mention with that is, Steve mentioned a new project activity, we’re seeing an interest in a lot of custom-type projects. And those take time if you’ll to industrialize, to develop and to engineer. So while we remain very bullish on the food and beverage growth, some of those projects that are in the pipeline are just taking a little bit longer to industrialize.

Okay, that’s helpful, Bob. Thanks as well, Steve. Good luck in the third quarter.

Thanks.

Thanks, Mark.

Thank you. Our next question comes from the line of Albert Kabili from Credit Suisse. Your question, please? Albert Kabili – Credit Suisse AG, Research Division: Good morning.

Good morning.

Good morning, Al. Albert Kabili – Credit Suisse AG, Research Division: Just a question, and maybe you could help us parcel across the segments of business, how the U.S. did in terms of sales versus Europe?

Sure. If I take a look at the U.S. market, beverage was very strong, okay. Beverage for us is not a big part of the U.S. market. All these are little bit relative, but beverage was up about 40%. Our Rx business on the Pharma side was up about 10%. That was driven primarily by strong sales to the allergy market. Fragrance/cosmetic was up about 3%. CHC in the U.S, again not a big element for us in the U.S. was up about 13%. And food was down about 10, as Steve said, the majority of that is in the U.S. and that was primarily tooling. If you take out tooling, it was down about 3%. And personal care was down 2%. Albert Kabili – Credit Suisse AG, Research Division: Okay. So it does sound like, correct me if I’m wrong, but it does sound like based on what I’m hearing on the U.S. side that why Europe was big part of the weakness, it does selling like the U.S. business, it seems to be slowing at least relative to the rates we saw over the last couple of quarters, would that be fair?

Yeah, that’s a fair statement. I mean if you look at it all blended in, we’re up about 1% in the second quarter and we’re up about 7% in Q1. So, yeah, that’s an accurate statement. Albert Kabili – Credit Suisse AG, Research Division: Okay, all right. And then I guess next question would be on Landmark, the meaner dose and the dose indicators there, what are you seeing there, you know, what’s the opportunity for -- it sounds like you’ve got some good -- you’re getting some traction with it, and I’m wondering if you got a view on sort of what penetration of Landmark could get to over the next few years?

Well, again that one is difficult on the timing, Al. I think we’re really encouraged -- frankly, it’s taking longer for it to get out than we thought. We thought this would have been out about a year-ago, and some of the approval sides for our customers getting through have taken a little bit longer. But the fact that we’re going to have actually two projects out with Landmark in the third and fourth quarter we think will help accelerate that. So it’s hard for me to give you any specifics, but it’s just encouraging that it’s a nice value-added product for us and we think it will have a bigger impact particularly as we get into ’13 -- 2013-2014.

I think with any of our new products like that, certainly the ones that are very new and very innovative, it always is helpful as Steve said to get some of those in the markets. I mean you’re going to have some -- the other nice thing is you’re going to have one of those in the U.S. and one of those in Europe. So you’re going to get that product visibility in two of the major markets, and then, it’s early to tell, but certainly that’s got to spur some interest. Albert Kabili – Credit Suisse AG, Research Division: Okay, all right, terrific. And I guess as a follow-up to that, is there any recent talk, any regulatory requirements along those lines?

There’s been nothing, frankly, new in the last six to nine months that I’m aware of. There continues to be -- in the asthma area, it continues to be for all new products being introduced, requirements to have dose counters on. So it’s any new products coming into the market are actually going to be requirement to have those. Albert Kabili – Credit Suisse AG, Research Division: Okay, great. Thank you.

Thanks, Al.

Thank you. (Operator Instructions) Our next question comes from the line of Jason Rodgers from Great Lakes. Your question, please?

Good morning.

Good morning, Jason.

Good morning.

Just a follow-up on the last question, just looking at the regions overall, Europe, U.S. and other countries, would you provide the performance for the quarter there?

Sure. Again reiterating, U.S. was up about 1%. Europe was down 5%. Again, I’m giving you blended here. Latin America was up 19%, and Asia was up 48%.

Okay.

And for that Asian number, about 10% was coming from our acquisition in India last year.

All right. And looking at the professional fees of $5.5 million in the quarter, where is that located on your P&L?

That will be in selling and G&A.

And that also comes, Jason, in the Pharma segment, so…

Correct.

…you’ll see that impacting the Pharma margins.

Okay. And then just looking at pricing, did pricing have any impact on the quarter and have you seen pricing pressure given the current environment in Europe?

I think you’ve got -- we’ve actually seen prices probably come back a little bit as the resins come down. We’ll adjust the resin pass-through. So I don’t think in the quarter it had a significant impact in terms of price pressure from our customers. It’s always been there in certainly in any kind of economic conditions we got now, there is continued to be focused on price. What I can tell you though is we haven’t lost any market share or anything. We’ve looked at several of our markets we probably even gained. So I think our customers are concerned about price, but even more concerned about differentiating their products on the shelves. So we tend to do pretty well in these kind of economic conditions.

Okay.

Thank you. Our next question comes from the line of Brian Rafn from Morgan Dempsey Capital. Your question, please?

Good morning guys.

Hi, Brian.

Steve, would you talk a little bit more on the cosmetic perfume side, did you see any differentiation, stratification between the level of business, and you talked a little bit about the high-end premium line versus some of the lower, more of the economy commodity fragrances?

: So that trend hasn’t changed over the past several years. So it’s a very different side in terms of how we treat the market.

Sure, sure. When you guys talked, I think you said that the new product launches, the pipeline are still pretty solid. Can you delineate at all on any of the new product launches, is it still multimillion units, is it still national or international launches or are they smaller and more regional?

They’ve gotten slightly larger over the last couple of years in terms of being more worldwide, and again, what I’m talking about here would be on the Prestige lines, you’re going to get some other of the fragrances being much more targeted to the local markets on some of the lower-end brands. But the other ones, they’re looking at major introductions both the U.S, Europe, Latin America, Asia on worldwide basis.

Okay. And then you talked too a little bit about customers still being really proactive to innovative dispensing and innovative packaging. Steve, is that strictly on look, in design, in ergonomics or might that be on product dispensing volumes or spoilage to the product or is it strictly on [second sizzle].

No, no. It is much more than the differentiation. To give you an example of we’re coming back, we have an airless package that we sell would basically allows us our customers not to be put preservatives into cosmetic products and even into food products. That type of functionality is really critical to our customers. So it is much more than just the look, its also the function.

Okay. And then just one final. Any progress on the milk industry relative to changing some of the dispensing?

Again, we just continue – the good news is for us, we continue to do a lot in the non-diary creamer that continues to expand. But in the milk per se, we don’t have anything that’s out there.

Okay. Thanks, Steve.

Thanks.

Thank you. Our next question comes from the line of Jon Andersen from William Blair. Your question please. Jon Andersen - William Blair & Company L.L.C., Research Division: Hey, good morning guys.

Hi, Jon Andersen. Jon Andersen - William Blair & Company L.L.C., Research Division: Just wanted to ask about the margins in food and beverage, you did have sequential improvement in operating margins there. With the, I guess, the ramp up of the new facility in Lincolnton, do you expect that kind of move towards at long-term target range of 11% to 14% kind of in the back half of the year?

I think it will continue to move up. Its going to be based on some of the timing we get through in some of the volume. But we do anticipate it to continue to progressively move up to the remainder of the year and then hopefully get closer to the target. Jon Andersen - William Blair & Company L.L.C., Research Division: Okay. And just one other, in the pharma business, you talked about some of the new applications, new approvals that were likely to provide opportunities to shift in the second half. How should we think about that impacting the organic growth rate, looking to the back half of the year? Of course, its more of a 2013 event.

Its probably more of the 2013 in terms of – on the ramping to those, and we will see how the product introduction because there is not one of those its going to be let’s call it a needle mover by itself. Its more of a combination of having a lot of those different projects. Jon Andersen - William Blair & Company L.L.C., Research Division: Okay. Thanks, guys. Good luck.

Thanks.

Thanks, Jon.

Thank you. This does conclude the question-and-answer session of today’s program. I’d like to turn the program back to Mr. Hagge.

Thanks very much. This concludes our call today and I’d like to thank everyone for joining us. Good bye.

Thank you ladies and gentlemen for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.