Good morning, and welcome to the Howmet Aerospace Fourth Quarter and Full Year 2022 Earnings Conference Call. All participants will be in a listen-only mode today. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded today. I would now like to turn the conference over to Paul Luther, Vice President of Investor Relations. Please, go ahead, sir.

Thank you, Joe. Good morning, and welcome to the Howmet Aerospace fourth quarter and full year 2022 results conference call. I'm joined by John Plant, Executive Chairman and Chief Executive Officer; and Ken Giacobbe, Executive Vice President and Chief Financial Officer. After comments by John and Ken, we will have a question-and-answer session. I would like to remind you that today's discussion will contain forward-looking statements relating to future events and expectations. You can find factors that could cause the company's actual results to differ materially from these projections listed in today's presentation and earnings press release and in our most recent SEC filings. In today's presentation, references to EBITDA and EPS mean adjusted EBITDA, excluding special items and adjusted EPS excluding special items. These measures are among the non-GAAP financial measures that we've included in our discussion. Reconciliations to the most directly comparable GAAP financial measures can be found in today's press release and in the appendix in today's presentation. With that, I'd like to turn the call over to John.

Thanks, P.T., and welcome, everybody, to the Howmet Q4 earnings call. Let's start by dealing with the headline numbers on slide four. For the fourth quarter, revenue accelerated as we exited the year, and it was above the high end of the guide at $1.51 billion, up 18% year-on-year. Commercial aerospace continues to be strong and was up 29% in the quarter. EBITDA was $336 million, at the high end of the guide. Revenue and EBITDA continued to improve sequentially for the sixth consecutive quarter. The strong operating EBITDA was mitigated by a couple of below-the-line items that Ken will cover in his commentary. Earnings per share was at guidance at $0.38, which benefited from the strong EBITDA and the Q4 tax rate, which mitigated the below-the-line items. For the year, despite the choppy backlog, year-over-year revenue was up 14% and EBITDA was up 12%, which drove a healthy earnings per share growth of 39%. Moving to the balance sheet and cash flow. Free cash flow was within the guided range of $540 million and as commented on the previous earnings call, included an inventory build for commercial aerospace to help smooth production adds as we move between years. Despite the inventory build, free cash flow conversion continues to be strong at 91%. Liquidity is healthy, with year-end cash balance on hand of $792 million and this was after share buybacks, bond repurchases and dividends. In the quarter, an additional $65 million of common stock was repurchased and the full year repurchase of common stock was $400 million. The December 2022 fully diluted share count exit rate was 418 million shares, which is an improvement of approximately 80 million shares since the start of 2019. This was accomplished while reducing net debt over the last four years as well. There…

Thank you, John. Please move to slide 5 for an overview of the markets. Revenue was up 18% year-over-year for the fourth quarter and up 14% for the full year. The commercial aerospace recovery continued throughout 2022, with fourth quarter commercial aerospace revenue up 29% year-over-year and up 28% for the full year, driven by engine products, engineered structures and the narrow-body recovery. Commercial aerospace has grown for seven consecutive quarters and stands at 48% of total revenue, but continues to be short of the pre-COVID level, which was 60% of total revenue. Defense Aerospace was up 13% in the fourth quarter, driven by year end seasonality and down 3% for the full year, driven by customer inventory corrections for the F-35. Commercial transportation, which impacts forged wheels and fastening systems, was up 12% year-over-year in the fourth quarter and up 14% for the full year, driven by higher aluminum prices and higher volumes, partially offset by foreign currency. Finally, the industrial and other markets, which is composed of IGT, oil and gas and general industrial, was essentially flat for the fourth quarter and for the year. For the fourth quarter, within the industrial and other markets, oil and gas was up 22%, IGT was up 2% and general industrial was down 10% on a year-over-year basis. Now let's move to slide 6. We will start with the P&L with a focus on enhanced profitability. For the fourth quarter, we had six consecutive quarters of growth in revenue, EBITDA and earnings per share. Revenue, EBITDA and earnings per share exceeded or were in line with guidance. For the full year, revenue was up 9% year-over-year excluding material pass-through of approximately $225 million. EBITDA was $1.28 billion or up 12% year-over-year. Adjusting for the year-over-year material pass-through, EBITDA margin was 23.5%,…

Thanks, Ken. Let's look at Commercial Aerospace first, which was up 28% this year. Airlines are experiencing strong growth for both domestic travel and now for international travel as well. Load factors are high in the US and Europe. China is now reopened and is increasing load factors at a rapid rate. This builds momentum on top of the increased Asia Pacific travel already seen. Backlogs of aircraft demand at Boeing and Airbus are at all-time highs for narrow-body aircraft. Wide-body demand is increasing rapidly, and further rate increases are expected. Airlines are bringing A380s back into service to meet international demand. This is clearly an inferior solution to having modern composite-based twin engine 787s or Airbus A350s with their vastly better fuel efficiency and lower carbon footprint. The demand for improved emissions alone secures the increased build, never mind the huge demand for travel. While noting very favorable air travel demand conditions, Howmet does rely upon aircraft builds by Boeing and Airbus, while also considering that we'll see rate increases for spares. Here, we're going to take a cautious and conservative view of 2023 until we know more and see consistent aircraft build rate increases. For example, underpinning the full year 2023 guidance, our assumed monthly build rates are approximately 30 per month for the Boeing 737 MAX, 53 to 54 for Airbus A320, A321. Additionally, we have assumed approximately 30 Boeing 787 builds for the year and 65 to 70 Airbus A350 build for the year. Within these outline numbers, we expect to see strength improving in the second half. These build assumptions underpin our assumed 17% Commercial Aerospace growth for the year. Now let me turn to other markets before commenting on inflation. In Defense, we expect to see low-single-digit increases in 2023 with less overhang to…

We will now begin the question-and-answer session. [Operator Instructions] And our first question here will come from Robert Stallard with Vertical Research. Please go ahead.

Thanks so much. Good morning.

Hey, Rob.

John, a question for you on these OEM build rates. There's obviously been quite a lot of talk about Airbus potentially elongating the ramp on the A320. I was wondering from your perspective, could this actually be a help in that it reduces risk, I mean you don't have to add as much cost or labor as quickly as you would do normally and then ultimately, you could get better margins in that scenario?

I think when you look back over the last few quarters, when we've had steadier build increases, drop-through has been significantly higher compared to those quarters where we've seen, I'll say, urgent or rapid demand changes and also where we've been asked by customers to chop and change on production schedules to meet maybe availability of parts they have rather than a positive scheduled. And so you can see, I think, in our third quarter, drop-throughs were probably in the high 30s, maybe 39%. And you saw the -- if you look at the tracker revenue changes in those quarters compared to the revenue changes in the higher quarters, then I think in the fourth quarter, it was -- I can't know exactly number let's call it in the -- below 30%. So I think steady as you go does help us. At the same time, because of the base of employment that we have has been growing, then the increments -- or incremental each step of the demand gets that much easier to accommodate compared to what we saw was, I think, extreme volatility in 2022. And I mean, in one sense, I'd like to expand the question a lot more broadly and talk about that volatility, but I don't want to miss the point of your question, but essentially, I think steady plan for rate increases are really helpful to us. And that's when we convert best, albeit we're setting ourselves up to do that and hopefully take also advantage of additional demand should it come towards us.

And our next question will come from Kristine Liwag with Morgan Stanley. Please go ahead.

Hey, John, I just want to follow-up on Rob's question on production rates here. I mean, when we look at where the other supply chains are – is in production rates, you've got periods gearing towards 42 per month by year-end. I mean, Boeing reiterated their outlook of 50 per month for 2025 plus 2026. We saw, obviously, Monster Air, India order today. So why do you see so much volatility? I mean, historically, the engine supply chain needs to ramp up before the airframers. And so what am I missing? I would have thought that you guys would get more of a priority and you would get the orders in now in order to support 50 per month.

Yes. I got to try to separate my comments between that which Howmet controls and that which is -- I mean, therefore outside of our control. And when I look at last year, we started the year full of optimism and thought the 2022 was going to be really easy. And it didn't quite turn out that way with lower fundamental volumes, which were masked by inflation recoveries. Inflation itself within the demand we had significant volatility in schedules from our customers. And as you know, when I spoke to you in the fall, we've seen cutbacks for engine business at the end of the third quarter and into the fourth quarter. And we ended up carrying probably $70 million to $100 million of additional inventory, which we had not planned or expected for because customers did not need those parts. And so if you go back again in the middle of the year last year, we were talking with Boeing about rate 38 such numbers. And we're really giving ourselves up to be able to address all of that. Also, I'll say, schedules of engine requirements, et cetera, et cetera, that would make made bills, even though 38 did not materialize. Even though as you mentioned now we're hearing, as I noted from the spirit caller that you referred to, I think it's 38 in the summer and 42 in October. I mean, as such is great, and we'd love it. And there's nothing which would give us more, I will say, pleasure and benefits than things that rates. But we also noted that during the fourth quarter that -- the third quarter and fourth quarter is that the actual numbers of aircraft sold, for example, by Boing was stated to be, let's say, back and by the time…

That's great color, John. Thank you.

Thank you.

And our next question comes from Myles Walton with Wolfe Research. Please go ahead.

Thanks. Good morning. John, a quick clarification. Really appreciate the conservative look at the guidance. I'm sure there was frustration through most of 2022. I'm just curious, does the guidance line up with your operations? And then also just maybe a comment on the responsiveness of your operations if things started to go better, how responsive can you be to some of the upside rates that are out there for going out of 2023 into 2024?

Yes. So obviously, because of the amount of people recruited last year, we are set up pretty well for the first quarter to be able to produce at this level or above. Should it reach those heavy rates of 38 and 42 as an example, or if Airbus are in the 57, 58? Provided we know that they're heading that way, and we've got about six months lead time, we'll be in good shape to meet it. We've been particularly good at being able to recruit labor to meet our needs. I'll recognize that sometimes the stability of that labor hasn't been everything we'd wanted, but getting the headline numbers has been something which we've been very comfortable with. We've put increased disciplines around our own recruitment process to make sure we have a higher level of retention, improved training routine, et cetera. So I think we're doing all the right things in the same way as we set ourselves up for the initial aerospace ramp to be in a good condition. And so fundamentally, I believe that we'll be able to respond to meet those customer demands. Clearly -- for example, if Airbus got a hit rate 65 for A320s in mid-2024s that's still the current number. Then, again, knowing it sooner rather than later is highly beneficial to us and also the commensurate engine rate builds from our customers. I think you saw last quarter my commentary that, we were able to produce at a fundamentally higher rate only to get cut back, because the other parts of the supply chain were there. So I feel reasonably confident, Myles, in there to do that.

Thanks a lot. Thanks.

Thank you.

Our next question will come from Seth Seifman with JPMorgan. Please, go ahead.

Hey, thanks very much and good morning, everyone.

Hey, Seth.

John, I wonder if you could talk a little bit about the profitability in engine products, and we saw kind of in the first half kind of mid-27% type of margin and then, it's come down in the second half and kind of makes sense that new hires would weigh on the profitability there. But, I guess, when we think about what's the level setting on the right margin for this business, I think there was a thought that maybe the 27% we saw in the first half was a good margin and then with growth, you'd see incrementals above that, and there'd be some expansion. But, I guess, from a long-term perspective, how should we think about where that shakes out?

Okay. Well, first of all, let me comment on profitability in the second half. That was, I'll say, fundamentally impacted by the fact we -- as it turned out, well, we thought we'd recruited to the right outline demand. As you know, because of those cutbacks, not only did we not produce as much, but some of what we did produce inventory, we eventually therefore, we didn't make the profit on it. The worst condition we were in is that, in actual fact, even though across Howmet, labor was pretty flat in the fourth quarter. So we -- let's say, net we didn't hire back where we were slightly down on labor. But in our engine products, we were down significantly. So more than 100 people down as -- which is most unusual to think about, we were cutting labor, given the underlying engine demand and basically because we were holding costs, which we did not need to be able to produce what we required. So we were in that pretty lethal band of having unfortunately stepped up to what customers had scheduled and then didn't require. We carry excess labor, and that labor we had was obviously not effective as it might be, because new labor does produce scrap. So we ended up with new labor producing higher rates of scrap combined with the cost of that. Now, we do expect that given the actions we took, trim labor, we're on a steadier -- we are back in recruitment mode, which we do have some cause for optimism for the future. In terms of rate builds and increases, even though we've chosen to be cautious about it is that -- I see no fundamental issues, not restoring those margins to at least the first -- the rate of the first half of 2022. And so, I never like to use the word like don't worry about it, but it really is. I don't think if you worry about it.

Okay. No, that's very helpful. And maybe -- so just to clarify, the margin, when we think about company-wide, the margin -- the sort of flattish EBITDA margin company-wide expected for '23, that's not a function at this point of having excess labor above the production rates that are in your guidance. You're kind of appropriately sized for what's in your guidance. And to the extent that there is revenue upside, then with the appropriate lead time, you'll be able to bring in the cost structure that you need to produce at that rate?

Yes, pretty much. So, the labor overhang, certainly by the end of January. So, we saw to bring this in the right ZIP code there. We believe, our scrap rates are going to continue to improve. The guidance we gave on margin is right, given the conservative demand pattern we gave. Plus, if you pick up the words I used about it, let's call it about $100 million of inflation and that's probably mostly nonmaterial inflation this year. We still there to be recovered. And as you know, last year, if our 22.5% would have been like 100 basis points higher with that $300 million inflation that we recovered. Then this year, let's call it's just less than half of that. So again, taking an appropriately cautious line on where inflation might be at this point in time. And hopefully, it begins to become a very benign factor as we go through the year and things will begin to look better.

Great. That’s helpful. Thank you.

Thank you.

Our next question will come from David Strauss with Barclays. Please go ahead.

Thanks. Good morning.

Hey David. How are you?

Hey John. Good, how are you?

Good.

Good. The 17% commercial aero growth that you forecast, how does that look across the different segments? And on commercial transportation, I think you outlined kind of your volume assumptions. But what should we look for in terms of just commercial transportation revenue next year, I guess, including pass-through as well? Thanks.

Yes. Let me deal with the latter part first, because I tend not to comment too much on individual segments growth anticipation thereof. For wheels, as an aggregate next year, my best assumption at this point in time is a $50 million to $60 million revenue decline and with the volume element of that being in the second half. I mean, it doesn't have to be that way, David. It's an assumption of what if there is a recession, its impact in Europe. I could get more optimistic about it, given I'll say the labor strength and recent strength in Europe. But at this point in time, much will be cautious. Right now, build rates in the commercial truck and trailer business are pretty healthy and healthier probably than we thought going into the year. Maybe that's because now the supply chain issues that the commercial truck manufacturers have faced beginning to ease and they can be able to build that some of the really high backlog that they've got. So it's no more an assumption, but if you can assume that we've got $50 million to $60 million of revenue decline in our numbers, in our guide at this point. In terms of the commercial aerospace percentage by segments, actually haven't got in my mind, that will have to be a follow-up with Ken and let’s kind of go to him, but we tend not to pull it out anyway.

Yes, it was just -- yes, I get that. I was just getting at, would you expect maybe fasteners to outgrow from a narrow perspective, just given how the press, the overall numbers still are there in that segment?

If anything, at the moment, I would expect as we move from Q1 into Q2 and Q3, actually, our engine business will probably show a higher rate of commercial revenue growth because I think the engine manufacturers have a job of catch-up from 22 to accomplish as well as look forward to future rate increases. So at this stage, a very rough assumption against 17%, I wouldn't be surprised to see it's a little bit higher, maybe 20% in our engine business and a little bit lower elsewhere. And then I think we haven't covered is the titanium that level obviously factor into 2023, as we go through it again, increasing as we go through the year.

Yes. So David, I'd put engines in the number one position, structures in number two and then fasteners in number three position.

Great. Thanks, guys.

Thank you.

Our next question will come from Gautam Khanna with Cowen. Please go ahead. Gautam Khanna, your line is open.

We can't hear you, Gautam. Okay, lets move to the next.

Our next question will come from Robert Spingarn with Melius Research. Please go ahead.

Hey, good morning.

Hey, Rob.

John, going back, 2019, 2020 and 2021 were pretty good years for you on price. And given that your LTAs are typically three to five years long, could you talk about the pricing opportunity this year and next and any opportunity to pick up share? And also if in these newer LTAs, can you build in mechanisms to pass-through freight costs and energy prices?

Yes. So first of all, where we file our K, which I think we are anticipating to be this evening, you'll see the final outcome for price in 2022. And the -- and that just evolve straight, if you could almost like take Qs one through three and the pro rata for the year. So it's a good outcome there. In 2023, I think you can expect a similar number in terms of price increase. So it is part of the methodology that I talked about for some years now, and it was not a one-off correction but more of the ongoing ability that we have to reflect value for the Howmet products that we bring to the marketplace. Our LTA cadence is pretty well set. We've already been in to now into the 2024s and so on because we are probably 85% to 90% complete already for 2023. So that's in good shape. Most of our conversations have been – it's and conversation as I call it, it's share because of our resiliency in terms of ability to build. And we started to see now an increase in spot business availability to us. So that's again good. And, clearly, we've always sought in recent times to protect ourselves for, let's call it, those inflation elements which are not part of that 95% plus raw material. So we're in good – an improving condition there as well, Rob. So, across the whole sector or questions that you're in good shape.

Is there any way to quantify the share gain opportunity over time? Is there an algorithm or something we can look to?

What I'd love to do one day is to call out for you, this is the aircraft build rate, and this is the amount of rates that should – a higher rate for Howmet. I haven't done it yet. I've just felt, we've got so many different segments to cover. And so it's been a particular skew of fundamentally relative differential rates of growth between Boeing and Airbus between narrow-body, wide-body, I felt that there have been so many elements of volatility of those demand pattern changes that come the day. And it will happen, Rob. One day, we'll be in that more – equanimity, where Boeing and Airbus settle into a future pattern, narrowbody and widebody will settle into that future pattern. I think production rates are going to come up and steady. And then that will be like the golden days, which are yet to come for all aerospace and aerospace suppliers at Howmet, in particular. So I think those conditions are coming, they're not yet here. I don't know I'm not saying, they're here for 2023. That's very clear what I talked to you earlier in this call about, but those things are going to happen. And I know, whether it's back half of 2023 or is it 2024, or is it 2025? I don't know yet. But at some stage, it will happen. And I think prior to that then I'd like to be able to say, this is the Howmet growth rate and to give you the percentage above aircraft build. And at that point, I feel confident in giving it to you rather than have it muddied by these – really these fundamental instability of narrow-body, wide-body Boeing, Airbus, et cetera, et cetera. So I think that's the appropriate time, Rob.

That's great. Thanks, John.

Thank you.

Our next question will come from Ron Epstein with Bank of America. Please go ahead.

Hey. Yeah. Good morning, John.

Good morning. Good morning.

Just a lot of the questions are focused on the company's new supply, but let's kind of go the other way. How is the health of your supply chain? And what are you seeing there? To help some of those suppliers out, I mean, what's going on there, if you can give us a feel for that?

In 2021, it seemed to be can much better than it was by the back end of 2022 for us. And when I talk about that, where we buy base metal, we had no issues all the way through. But where we buy somebody else's alloy metal, that's given us heartaches for sure, and that heartache definitely increased in the back end of 2022. And that's impacted the stability in throughput, for example, of our ring segment in engine that it's affected our faster business. And while we think we have scheduled appropriate, we've had outages of somebody else's forge or say metal cincturing. We've had recently a fire in one of our, I'll say, waste competitor. It also -- it supplies us for certain parts. And so those -- I'll say that availability of metal has been much more prevalent in the last few months. Now, again, hopefully, it begins to smooth out as we move into 2023. Again, I think it's some months away before we get visibility. But I've got a list of items today where we're in a, I'll say, a low or no-build condition because of availability. But I'll say I'd look more -- to those two areas I talked about, which is rings and fasteners will be the areas which you've had the majority of the problem. And there's also been a bit of a problem on titanium revert as well, but again, smoothing that through and trying to step up to the increasing titanium that we're experiencing.

Got it. Got it. Thank you very much.

Thank you.

Our next question will come from Gautam Khanna with Cowen. Please go ahead.

Can you guys hear me?

Can hear you now, Gautam.

Terrific. Sorry about that earlier. I'm not sure what happened. Hey, I had a couple of questions. First, I was wondering, do you guys have a sense for where you were on Q4 production rates by the platforms that you guided for in 2023? So, like where you were on the 37, where you were on 320, et cetera?

Okay. We were below -- I think we were below 50% on the Airbus platforms just fractionally, let's call it 48%, 49%. And I'm going to call it, high 20s -- mid to high 20s on Boeing is my best guess. So, these are just guesses at this point.

Okay. And 87, I imagine, is like two or zero, where do you think you were?

Compared to one a month, you can call it, more like half a month.

Got it. Were there big differences by the various segments, engine versus fasteners versus structures?

That's tough for me to picture all of that going back to last quarter. I think widebody was a particularly notable lower number for our fastener business in the fourth quarter. So, I know we were below whatever we built on the 787. I can't do from memory across every platform in the last quarter, however, they just think about it or may it must be a follow-up question.

Okay. And also just on 350 as well, A350 Q4 rate?

Yes, 350, that's been much more stable for us. Again, built fractionally below this year. We're optimistic in that I think our rates between five and six. And I actually think there's a good case for fundamental demand to be well above six. And so I don't know where Airbus will finally plan that second half rate and rating to 2024. But from what I could see of airline demand and particularly, the amount of 747s, which are flying around A380s, I think if they could access 787s or A350s, they would be desperate to do so. And so I think airlines need them not only for their own profitability, but also for their own carbon footprint. And I really do think there's a case for looking at that carbon footprint, and we need those composite based aircraft. And so I think we should be very optimistic on that twin engine wide-body demand in the back end of 2023 going into 2024 and I can see clear reason for higher rates. And so when Boeing talked about the rate 10 787s, is it 2026? I think that's definitely really very realistic and similarly taking Airbus up into that same sort of A350 that number. I really believe it's that strong, if not stronger.

That's helpful. And then I apologize for the several questions. But I also am curious, a couple of years ago, you gave us some contract color with RTX on airfoils, F135, GTF, et cetera. Any update there on your visibility, because as you know, they're building that Asheville facility. I don't know if that's had any impact, or will have any impact in the next couple of years in terms of…?

It's always difficult to really know, because we're not part in privy to the detailed plans from Raytheon. What the big that we do know is that we are intimate on the improved, let's say, advantage engine, and we're providing -- or going to provide more content and sophisticated product there to allow higher thrust and fuel efficiency. We are also -- in my comments earlier on the call, I spoke to 2028 Block 4, and we're intimating in that. We're deep into with both US engine manufacturers for the potential next-generation fighter programs in terms of engine. And so I think we’re well-positioned and every one of those products I'm talking about is a level of sophistication higher than is in the market today and bringing what is not only, I mean, today's uniqueness, where we're the only supplier able to do it. We're taking that further by considerable margin to enable those upgrades to happen. And the cost of, therefore, by comparison to the benefit provided by, I'll say, increased flying time and less fuel usage and increased path of the avionics is just enormous.

Okay. Could you guys say what happened to the $70 million of deferred shipments in Q4? Will that get reabsorbed in Q1, or is that through the course of the year? Thank you.

I think that will disappear very readily during the first part of this year. So -- and maybe if volumes begin to get -- we take a more optimistic volume, it may well be we might choose to hold some of that inventory by the end of the year, because we'll be looking at 2024. But at the moment, our going in assumption is that the rates I've given will burn some of that off. And we'll see where we go for the second half, Gautam. I mean, part of me would like to be optimistic, but I've chosen to be -- let's keep our feet on the ground and give you the guidance we've given.

Thank you so much.

Thank you.

And our last question today will come from Matt Akers with Wells Fargo. Please go ahead.

I wanted to ask on CapEx. It looks like you guys are expecting a step up this year. I know it's still below D&A and below kind of what it was a few years ago, but just what's driving the uptick and how we should think about that kind of as we ramp up aero production here?

Yes. So, first of all, we've taken, I will say, pressed out on the CapEx for the last two or three years and to be sub $200 million, I think, was a good outcome for the year. I do think that because of not only rate increases are coming, we feel not something you can turn on. You have to prepare for them and provide CapEx, not for some aspects of the volume, but also some of the technological changes that we've talked about. We're also spending again on automation, and that's proving to be, again, beneficial to us over the last couple of years. But I think it's part of -- as we move into looking at 2024, 2025, if it turns out to be the more optimistic scenarios that we've talked about of both narrow-body rate and wide-body rate, then I think for us to be in that ZIP code of just below inflation will serve us well, and it will be a source of cash and just let it through the next couple of years at that sort of level. And if we achieve that, I think in terms of CapEx usage for the business and coming up to our target -- utilization rates will be in a good shape to achieve all of that.

Okay. Great. Thanks.

Thank you.

This concludes our question-and-answer session and also concludes today's call. Thank you very much for attending today's presentation. You may now disconnect your lines.