Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the European Wax Center’s Second Quarter [ph] Fiscal 2022 Earnings Call. At this time, all participants are in listen-only mode. After the speaker’s presentation, there’ll be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to turn the conference over to your speaker today, Amir Yeganehjoo, Senior Vice President of Financial Planning and Investor Relations. Sir, you may begin.

Thank you. And welcome to European Wax Center’s third quarter fiscal 2022 earnings call. With me today are David Berg, Chief Executive Officer; and David Willis, Chief Financial and Chief Operating Officer. For today’s call, David Berg will begin with a brief review of our third quarter performance and discuss the progress against our fiscal 2022 priorities. Then David Willis, will provide additional details regarding our financial performance and our guidance. Following our prepared remarks, David Berg, David Willis and I will be available to take questions. Before we start, I would like to remind you of our legal disclaimer. We will make certain statements today, which are forward-looking within the meaning of the Federal Securities Laws, including statements about the outlook of our business and other matters preference in our earnings release issued today. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially. Please refer to our SEC filings, as well as our earnings release issued today for a more detailed description of the risk factors that may affect our results. Please also note that these forward-looking statements reflect our opinions only as of the date of this call and we take no obligation to revise or publicly release the results of any revision to our forward-looking statements in light of new information or future events. Also, during this call, we will discuss non-GAAP financial measures, which adjust our GAAP results to eliminate the impact of certain items. You will find additional information regarding those non-GAAP financial measures and a reconciliation of those non-GAAP to GAAP measures in our earnings release. A live broadcast of this call is also available on the Investor Relations section of our website at investors.waxcenter.com. I will now turn the call over to David Berg.

Thank you, Amir, and good afternoon everyone. Thank you for joining us today. We are pleased to deliver Q3 performance in line with our expectations, continuing to demonstrate the strength of the European Wax Center business model and our strong guest relationships. I'm especially proud that our, says and dos continue to match in the midst of a very dynamic consumer environment. I want to thank both our team and our franchise partners who continue to execute on our initiatives, while delighting our loyal guests with exceptional service. Even in an uncertain macroeconomic environment, the recurring nature of hair growth and our position as the leader in the out-of-home hair removal category, reinforces our confidence in the strength and resiliency of our model and our long-term growth trajectory. From a top line standpoint, we delivered on our two key growth drivers, new center openings and same-store sales. We opened 18 new centers ending the quarter with 911 centers across 45 states. With all remaining new fiscal 2022 centers currently under construction and greater visibility to their opening dates, we are once again raising our expectations for fiscal 2022 net new centers to 88 to 90, which represents a year-over-year increase of more than 10%. Turning to our second growth vector. We delivered 4.7% same-store sales growth, driven primarily by pricing actions we took earlier this year. In our third quarter, we generated 7% system-wide sales growth to $235 million, 12% total revenue growth to $55 million and 13% adjusted EBITDA growth to $18.6 million. With the first three quarters of the year behind us, we have more visibility to the remainder of 2022, and thus are able to narrow our full year outlook within the financial ranges we set in March and raised in May, underscoring the durability of our…

Thanks, David, and good afternoon, everyone. Our third priority increasing the pipeline of wax specialists will ensure the brand has the service providers needed to support our long-term unit growth. As I shared last quarter, we will always focus on engaging and retaining top talent at our franchise locations. To that end, we've been working to diligently strengthen the European Wax Center reputation on two of the top online hiring platforms Glassdoor and Indeed. We're excited that our Glassdoor metrics have been steadily increasing throughout the year and our Indeed rating has reached a two-year high. During Q3, we also completed an exciting overhaul of our careers web page. Having a robust career site is critical, as it drives twice the conversion rate for interested applicants as compared to third-party hiring platforms. Online applications to our franchise centers have grown year-over-year for the past six months straight and the brand is now receiving more than 1,000 application submissions per month from prospective wax specialists. More robust site engagement reporting is also helping us design wax specialist content that can be leveraged moving forward to promote the brand with targeted associates. I also shared in Q2 that we implemented new labor utilization reporting for our franchisees. Through this tool, we are helping franchisees optimize staffing in their centers and we saw wax specialist utilization rates continue to improve in Q3. We are also providing additional resources around in-center turnover and retention rates. At our recent brand conference that David just mentioned, two-thirds of the session is focused on employee recruiting, management and retention and our franchisees share their enthusiasm for the recent initiatives we've rolled out. From a long-term standpoint, we continue to launch partnerships and produce educational content to support our beauty school outreach programs. We recently partnered with Styles,…

Thanks, David. In summary, European Wax Center's strong asset-light business model is generating significant cash flow and driving results for our guests, franchisees and shareholders. We remain the dominant player in a highly fragmented industry, based on a recurring need, hair removal. While not immune to inflation, our core guests remain extremely engaged, demonstrating that a challenging macro environment does not change their appetite for our services. Our brand continues to attract top talent, along with the unwavering demand to develop new locations throughout our significant white space. We believe that over the long term these competitive advantages will enable us to continue taking market share regardless of the environment. I will now turn the call back over to the operator for questions. Operator?

[Operator Instructions] Our first question or comment comes from the line of Jonathan Komp from R.W. Baird. Mr. Komp, your line is open.

Yeah. Thank you. Good afternoon. I wanted to just ask a little bit more about the customer behavior you're seeing and how you're reflecting that in the tightened outlook for the year? And more specifically, when I look to the fourth quarter, could you just share how you're thinking about same-store sales for the quarter? Any insight on, your expectations to be able to impact the sales trends, and as we look forward into first half of 2023 just any thoughts on additional drivers or other initiatives that might be able to help drive sales here?

Hi Jon David Willis good to talk to you. Thank you for the question. When we narrowed our guidance we really were just factoring in what we saw the transaction trends, as we exited the second quarter that we talked about on our last call, we really saw those continue throughout the third quarter and as we're one month into the fourth quarter kind of the same trend no better, no worse. Not fully recovered to what we saw in Q1 of this year, but fairly steady. And that's coming from our episodic guests, kind of our lower quintile guests that are just spreading their visit frequency out a bit. David touched on it. We took a number of actions in the third quarter. The three-plus-one Wax Pass promo we think was a successful initiative. The fall 50 that we did in the third quarter in terms of giving 50% off that second service that the guest has not had with us in over a year, the rebooking contest, we had success with that in the third quarter. We're extending that here into the fourth quarter. So we continue to take actions to drive visit frequency. And feel overall very good about the health of most of our guest file. David touched on it. Our top quintile guests, they haven't changed the routine one bit. They represent over half of our system-wide sales. They're coming at the same frequency and candidly spending a bit more. So we're going to keep an eye on it. In terms of same-store sales comps when you kind of run the math at the midpoint of our guidance, I think that kind of takes us here to low-single digit for the fourth quarter.

That's right. Yeah. I mean, Jon, if you think about the revised guidance of approximately 9.5% and what we've achieved, thus far, year-to-date, keep in mind, Q1 had an easy compare in California than we saw some pre-COVID recovery in Q2, Q3. But that suggests about 3% -- approximately 3% for Q4 for that approximate 9.5% guidance. Just as a reminder, that's the low single-digit comp transaction, decline offset by the pricing actions that we took in the quarter that you'll see that 3%.

Yeah. Great. And if I could just ask one follow-up, David Berg, I think you mentioned the initial outlook for unit development in 2023 which sounded quite strong, just wanted to get a little more context to your visibility and confidence to that level, especially just given higher construction costs, higher financing or interest rates for franchisees just in an uncertain environment. Just curious, what gives you confidence at this stage in projecting a pretty solid outlook?

Yeah, Jon thanks for the question, always good to hear from you. We feel great about what we're looking for all solely for the balance of this year where now this is the second or third time we've been able to raise our new center outlook up to 88 to 90. And really what gives us confidence as we look to 2023, Jon is the robustness of the pipeline that we have -- that we've built. And we've said this before, but it bears repeating which is 90-plus percent of those new center commitments are from our current franchisee base. So these are folks that either, are well capitalized with an institutional partner or they're just because of the 60% cash-on-cash returns they have in the centers that they're operating, they've got plenty of cash to go forward and continue to grow with us. So we do not see interest rates as any kind of deterrent. The demand is there. Our construction costs we've really done a good job, in this new center design to get it into that range where franchisees are comfortable and can still have the kinds of returns in the time lines that we've had in the past. So as I stated in my opening comments, we'll hit that 88 to 90 this year and that will be the – certainly, we'll do that next year as well.

Yeah. That's great. Thanks again.

You bet. Thanks Jon.

Thank you. Our next question or comment comes from the line of Dana Telsey from the Telsey Group. Ms. Telsey, your line is open.

Hi. Thank you. Good afternoon everyone. When you look at this quarter …

Hi.

…and the exit rate of the second quarter was there any difference in monthly cadence or also performance in California versus the rest of the country? And then, just wanted to touch on the gross margin guide, which is coming in at the upper end from your former guidance and key drivers there and expectations going forward? Thank you.

Dana, this is David. So from California no material difference from the rest of the network. You may recall they're still comping off a fairly lower base relative to the other states. So they're going to show transaction trends a little more favorable than the rest of the network but not material. Do you want to take...

Yes. So on the gross margin, Dana, again, hitting in the high end of the range you've probably have seen in Q3 we're a little bit lighter than what we've achieved in the first couple of quarters. Part of that, was the medical supplies agreement that we talked about that came into play closer to Q2. We also have a higher mix of our product sales that occur in Q3. And so, Q3 was a little bit pressured in terms of gross margin, but we'll see kind of that rebounding in Q4 closer to the approximately 71.5% and we feel confident in our ability to deliver the approximately 71.5% for the year.

Got it. And then, just lastly, with the value offerings that you've been doing lately what's the game plan to the value offerings in the fourth quarter frequency or any changes to them?

Yes. Hey Dana, it's David. Thanks for the question. I think we looked at all of these promotions and actions that we took in Q3 with the lens not just a sort of single transaction. We really had a lifeline for each of these promotions. So let me speak specifically to the three-plus-one offer that we made at the end of Q3, which was really to go after that value-conscious guest. We were very pleased as we talked about with the meaningful uptake we saw in that three-plus-one Wax Pass, three quarters of the folks that bought that had already had at least two services by the end of September. So the timing is right, as they use up that three-plus-one. And you'll recall that there is an expiration date on those. But that falls in line with the nine-plus-three offering that we've got going on through the balance of the year. And with respect to those guests that bought the three-plus-one Wax Pass we have a special offer using it really our CRM to target a special enhanced offer to them to move up to that nine-plus-three offer. Similarly with our 50% off that new second service that we offered guests that we've extended into this quarter, we see that also from a lifeline standpoint that it's an opportunity for us to sell a second Wax Pass to those guests. So as with the three-plus-one Wax Pass purchasers those folks that took advantage of the 50% off the additional service will also be targeted with a special offer to buy an additional Wax Pass with some rewards point -- loyalty rewards enhanced for those folks. Our normal view also saw that we pulled forward our nine-plus-three offer in Q4. We started that two weeks early. We wanted to make sure sort of from a holiday dollar standpoint that we were able to get share of wallet. We've been very pleased with the uptake that we've seen in the first couple of weeks of that earlier promotion. We've got about 30% of those guests that had not purchased a Wax Pass in the last 18 months purchased it in the first two weeks of the promotion. So, we're very pleased with kind of the initial outset and results that we're seeing there. We will certainly run our limited time offer in terms of our retail product and really kind of unique product offerings holiday kind of gift products that will allow our guests to take advantage of things as well. So, we feel good about kind of the again looking holistically at the promotions that we made in Q3 that are going to help continue to drive business for us in Q4 and beyond.

Thank you.

Thanks Dana.

Thank you. Our next question or comment comes from the line of Lorraine Hutchinson from Bank of America. Ms. Hutchinson, your line is open.

Thanks. Good afternoon. I wanted to follow-up on the question earlier about the same-store sales growth looking for low single-digits in the fourth quarter. Can you just talk to the key drivers to reaccelerate that trend to get back to the high single-digit target next year?

It's really going to be the ticket with the Wax Pass from Lorraine, if you think about the size of those tickets and commitments the nine-plus-threes can get in the neighborhood of $600 ticket. So, as our guests redeem those higher-value services we think that that's going to help drive the average ticket here in the fourth quarter.

Thanks. And then as you look forward, well -- maybe let's pivot to the franchisees. What are you hearing from them about the slightly more promotional cadence that you're offering customers? Are you hearing any pushback from your franchisees? What's the reaction been?

Yes. Hey Lorraine it's David. We just -- as I mentioned in my comments, we just came out of our franchisee conference here less than a month ago. And it was the first one we had since prior to COVID. So, it was great to get everybody back together. As we mentioned the 98%-plus satisfaction rate. The energy, the enthusiasm for the brand was absolutely palpable and really all left energized after we got out of that. We certainly heard anecdotally about the commitments that folks are making maybe even getting out of other concepts that they might be in and double downing and investing in European Wax Center. We have a great relationship with our Franchisee Advisory Council and we have discussions with them regularly about any kind of promotional activity. I'll double click on the [Technical Difficulty] plus one. That was incredibly well-received by our Franchise Advisory Council and by the network that this was an opportunity for us to go out and help get that cost-conscious guest on a Wax Pass so that we can then articulate them up to the nine-plus-three and a special offer that we're giving them is kind of a no-brainer in terms of getting them hooked into that. So, we make sure that we always are getting our franchisees to buy and make sure that they understand. And one of the most important things I've said this many times on these calls in any franchising system we've got to do things that our franchisees know how to do and know how to go execute. And anything that we've run, so a rebooking contest giving more dollars for referrals, selling Wax Passes, this is all right in the wheelhouse of the great operational expertise of our franchisees and that's why I think we've seen such nice results in terms of the levers that we pulled in Q3 and will continue in Q4.

Thank you.

[Technical Difficulty] Mr. Heinbockel, your line is open.

Hey guys. Can you talk to -- in this environment, what do you think happens to the maturation curve right of new centers this year's cohort maybe next year? Is the top line ramp a little slower but is the bottom-line ramp better right? Because if transactions are under pressure maybe you don't need as much wax specialist labor right? And that helps the franchisee P&L. Is that -- how do you think about that?

John we've really seen the last couple of years cohorts including new centers opened this year continue to ramp a bit ahead of the historical maturation curve. So, I don't know that I would say that it's worse in the early years. We continue to be very pleased with how that -- how these centers are ramping. As David had mentioned -- maybe not mentioned in our prepared remarks, we're in the very early innings. All of these fantastic new center openings have really come from our historical franchisees. We're in the very, very early innings of new center openings coming from the institutional capital-backed operators. They kind of found entry points over the last couple of years. We negotiated multiunit development agreements with them and they're just at the early stages of starting to reopen. So, not only does that drive confidence in our ability to deliver the NCO targets that we've committed to you guys, but the performance -- operational performance of those centers were quite confident they will continue to ramp positively.

And in terms of -- you touched on this John. But in terms of profitability of our franchisees, we've also seen really healthy results throughout this year ahead of 2019 results as well. So, while we've seen the maintenance of the overall maturation curve and topline we've also seen an improving bottom-line from the four-wall standpoint.

And how do you guys think about there's a balance densification drives network effect but it also potentially increases cannibalization. So, how do you look at the balance of that again in a maybe a slower demand environment? And do you think -- how much do you think cannibalization ramps up? I don't know if you've quantified it lately but how much that increases right over the next year or two?

Well, John I would say that when we model our white space both from a top-down perspective from the demographics and then a DMA trade area by trade area going back up we had modeled kind of 5% to 10% cannibalization rates. That's what's driving us ultimately to our target of 3,000. Now, what I would tell you is we've seen some franchisees that want to strategically identify a market on an accelerated basis they're willing to cannibalize their own centers a bit more than that. But we're still comfortable that that 5% to 10%. We haven't seen any significant change over the last call it two to three quarters in terms of cannibalization rates where our franchisees are identifying markets.

Okay. Thank you.

Thanks John.

Thank you. Our next question or comment comes from the line of Kelly Crago from Citi. Stand by. Your line is open.

Hi, there. Thanks for taking my questions. Just wanted to follow-up on an earlier question around the first half of 2023 from a comp perspective. You're still planning transactions down low-singles. I think you might start to lap the pricing increases. So, is it fair to assume that the comps would be potentially negative in the first half of next year, or am I not thinking about that one right? And then I just have one follow-up. Thanks.

Yes. It’s good question, Kelly. So you're right that we will be lapping but there's also the maturation curve and the continued growth of our centers. And so, how I would frame it up is you would see about 300 basis points to 400 basis points pressure on our overall comp. And so thinking through it -- obviously, it's too early to guide we'll kind of learn more and give that holistic perspective. But as you look at the trends, I would think through 300 basis points to 400 basis points of pressure on the overall comp.

Kelly, I would just add a lever that we've had in our toolkit is taking price. We've taken price each of the last couple of years. As of right now, we don't have a set target date for taking price across the network. When we did a postmortem analysis of the price we took earlier this year, we found that it was quite effective with very nominal attrition. Now there's a handful of franchisees that took multiple price increases this year and we did see them have some ticket attrition. So we're going to be very mindful in terms of how we think about price. We're going to be mindful of our cost structure four-wall margins as we look at this holistically. But as of right now, for Amir's comments, we don't have baked into first half of next year and assume price increase.

Got it. And just a follow-up on the last the 300 basis points to 400 basis points of pressure on the overall comp, is that relative to the high single-digit comp guidance that's out there longer term?

That's right.

Okay. Got it.

That's exactly right. Yes.

Got it. And I guess -- and then the other point on the price increases, I mean I'm just curious what you think is that any impact on transactions this year, especially given the inflationary environment overall? Would that make you think differently about price increases given the weakening macro environment? And just lastly on that point, since you've had to get a little bit more promotional to drive traffic, I mean does that have any impact on your margins, or is it sort of borne by the franchisees? Thank you.

Sure. So in terms of the pricing when we did our evaluation of that, we found that for those franchisees that took the pricing that we recommended, those had nominal impact on tickets. I want to make sure I'm clear. There are a handful of franchisees that either took more price than what we recommended or to multiple price increases throughout the first half of the year. Those few centers did have an impact on ticket attrition. So that told us, we had it about right or we felt we had it about right in the first quarter but we are mindful of taking more price against the backdrop of the inflation that everyone is seeing. And in terms of the promotion and the impact on the four-wall, and as you've heard kind of David Berg mentioned a lot of the promotions are focused on driving long-term value for the guest. And so if you think about the three-plus-one Wax Pass, they're running the nine-plus-three two weeks earlier. And so we see that although, it's a very short-term, slight impact to the four-wall, we see that as an overall positive impact to transactions. And then some of the incentives that we have run have been supported by the corporate to drive engagement at the center level around rebooking some of our services per ticket contest. And so it's kind of a mixture of both, but I would say all of it is focused on driving long-term value for the guests.

Maybe one final point I would make, we now have the data to better measure and monitor performance of these promotions. We're not necessarily running more promotions than we've run historically. We have better data to measure impact and pilot different options. So we're probably talking about it more but I don't want you to get the impression that we're running more promotions in what the brand has historically run.

All right. Thank you, guys.

Thanks, Kelly.

Thank you. Our next question or comments comes from the line of Simeon Gutman from Morgan Stanley. Mr. Gutman, your line is open.

Hey, guys. I missed a little bit at the beginning, so pardon this if it's repetitive. I think you said transaction run rate quarter-to-date is the same as Q3, but I don't think you gave like any other like total comp quarter to-date. I guess the question is should that be consistent with the comp? And then, the implied Q4, are you building in any change in how the consumer is feeling?

Yes. So in terms of Q4 we're not building any -- we're basically looking at that the run rate that we have seen and factoring the same run rate through the end of the quarter. As you know we have our nine-plus-three promotion. And so Q4 is a relatively important quarter for us and a big quarter for us. And the results that we've seen in the first two weeks of launching the nine-plus-three, has been encouraging. The transactions that we talked about early on Simeon was being down low-single-digits in terms of overall transaction comp versus an expectation of low-single-digit growth. Overall transactions, is still growing. Just in terms of comp, we are down.

Okay. The second one is around interest rate environment. I guess franchisee, appetite, new leads, et cetera, I guess Dave you've been in this environment for both Davids actually. So curious we get a lot of questions on it. We don't have to think about it. Does this mean -- does it end up tilting towards some of the larger well capitalized? Does it mean the diversification plans have to pause? How should we think about it?

Yes. Simeon I think, the short answer is there an impact of the rising interest rates in our franchisees and their desire to grow. The short answer is no. And I think if you dissect it in the two groups, the folks that are self-funded are great franchisee operators. They're utilizing the cash that they're generating from their mature centers to reinvest. And we talked about it before that the bulk of our growth in 2022 are from those folks. It's not from the institutionally backed franchisees. So we'll see that -- we'll start to see the benefit of that to John's question earlier that's part of what gives us that confidence in 2023 are those multi-year multi-unit commitments that we have. And with respect to those franchisees that have taken on an institutional capital partner, they're well capitalized. They're not over-levering these units. Again, Simeon, this is a $350,000 build out. So the capital requirements are not that great. So we don't see it from our franchisees. We don't see it in terms of the pipeline growth that we've experienced nor in terms of the excitement about getting more units with our current franchisee group that again 90-plus percent of that growth is coming from those folks.

Great. Thank you. good luck.

Okay. Thanks, Simeon.

Thank you. Our next question or comment comes from the line of Scot Ciccarelli from Truist. Mr. Ciccarelli, your line is open.

Good afternoon guys. So I guess I'm a bit confused on the promotional activity comments, because I guess kind of the way you guys were talking about it, it did seem like you were increasing promotional activity, but then you just said there really isn't a difference in cadence. Can you help clarify specifically what you mean on that?

Scot, sorry, this is David. I may have been confusing on that point. We are not -- the question was raised, are we running incremental promotions? Is it margin dilutive either to us or to our franchisees? In terms of the quantity and the types of promotions are very consistent with what we've run historically. We're tailoring specific promotions and we're talking about them more, because we have better data to measure them. So I just didn't want there to be the impression that everything is on sale all the time. These are all promotional activities that our franchisees are quite familiar with and are good at executing.

Got it. And so when you talk about transaction activity really hasn't changed from that kind of negative low single-digit cadence that you had over the last several months. We shouldn't assume that's despite, let's call it, higher promotional activity it's just kind of the same run rate both on transactions as well as promos.

Yes. What we are trying to do are run those promotions that are going to drive guests into centers give more share of wallet ultimately to drive guest visit frequency. We probably spend more time talking about the wax pass and the positive halo effect of getting guests on a wax pass, but every one of our promotions is really intended to drive first new guests into the center, maximize share of wallet there, and then best case get them on a regular routine so that we get the -- our franchisees get the benefit of that frequency.

Got it. Okay. I understand now. Thank you.

Thanks, Scot.

Thank you. Our next question or comment comes from the line of Korinne Wolfmeyer from PSC. Your line is open.

Hi. Good afternoon all. Thanks for taking the question. Quickly on what you're seeing on the retail side. Can you just provide a little perspective on how that side of the business has been performing, and what you've been doing promotion-wise? I mean, it does seem like some of the promotional activity has been increased there a bit, but can you just provide a perspective on what the normal promotional activity for those retail products?

Sure, Korinne. We -- most recent promotion we ran on retail was to buy more save more promotion. And we ran -- I think we ran one of those in the first quarter last year. We ran at least one of those last year in 2021, and we've been pleased with the results. Retail attach rates have kind of been in that 13% to 15% range. So they've been reasonably consistent. The LTOs that we're running here in the fourth quarter are really geared towards holiday products. So we've been quite pleased overall with the results from our recent retail promotions.

Got it. Thank you. And then can you just touch on what you're seeing in terms of like average ticket price? I mean, I know you gave that price, but how do you see that developing over the next couple of quarters or even years? Is there a chance or opportunity to start pushing some of these higher cost services on your existing customers to drive that average ticket price up? Just how are you thinking about that?

Yes. So, in terms of the average kind of order value, we see that around $55 to $56 and that is up as you would expect with the price increase. So it's up about 5.6% compared to last year. There's always kind of initiatives to suggest and upsell at the center by the GSAs. We also have another driver of taking up that lever, which is services per ticket. We ran a contest around that in Q3 and we saw a slight increase there as well. And so there are promotions and let's call it initiatives around that for GSA to recommend and drive that. We expect that to normalize absent any price increase next year.

Thank you.

Thanks, Korinne.

Thank you. I'm showing no additional questions in the queue at this time. I'd like to turn the conference back over to management for any closing comments.

Thank you. And thanks everybody for taking time on the call today. We certainly look forward to speaking with you in the days and weeks to come and us continuing to deliver on our long-term growth objectives. So thank you all very much for joining us.

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day.