Good day, and welcome to the Rocket Companies Incorporated Second Quarter 2021 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I'd now like to turn the conference over to Sharon Ng, Vice President of Investor Relations. Please go ahead.

Good afternoon, everyone, and thank you for joining us for Rocket Companies earnings conference call covering the second quarter of 2021. With us this afternoon are Rocket Companies CEO, Jay Farner; our CFO, Julie Booth; and our President and COO, Bob Walters. Before I turn things over to Jay, let me quickly go over our disclaimers. On today's call, we will provide you with information regarding our second quarter 2021 performance as well as our financial outlook. This conference call includes forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions we mentioned today. We encourage you to consider the risk factors contained in our SEC filings for a detailed discussion of these risks and uncertainty. We undertake no obligation to update these statements as a result of new information or further events, except as required by law. This call is being broadcast online and is accessible on our IR Website. A recording of the call will be available later today. Our commentary today will also include non-GAAP financial measures. Reconciliations between GAAP and non-GAAP metrics for our reported results can also be found in our earnings release issued earlier today, as well as in our filings with the SEC. And with that, I'll turn it over to Jay Farner to get us started. Jay?

All right. Well, good afternoon, and welcome to the Rocket Companies earnings call for the second quarter of 2021. We had a strong second quarter as we continue to execute on our growth strategy and leverage our platform across real estate, auto and financial services. In real estate, revenue was driven in part by record purchase volume, putting us on track to reach our goal of becoming the largest retail home purchase lender in the nation by the end of 2023. Many of the accomplishments that we've achieved are results of our technology and of course our people, who bring their best to work each and every day. This tremendous combination was recently rewarded with Rocket Mortgage again being named the #1 company for client service and mortgage servicing by J.D. Power. The accolade marks the eighth consecutive time our company has earned this honor and it's our 19th J.D. Power award overall, when you include the 11 straight #1 rankings we've received for mortgage origination. Our servicing team put our clients first, helping them through the difficult and uncertain times during the pandemic. While clients at other lenders experienced several hour wait times at the onset of the pandemic, Rocket Mortgage clients were able to navigate a digital solution, complete with educational resources and easily apply for forbearance plans online. This approach resulted in Rocket's forbearance rate being 41% lower in the industry. Innovative technology-driven, client-first solutions such as these are a testament of our ability to scale and to quickly pivot to meet the demands of unpredictable markets without the need to add headcount and ultimately deliver unmatched client experiences. As we turn back to the second quarter results, 2020 accelerated the shift to an all digital experience, an opportunity that Rocket has planned to capture. The demand…

Thank you, Jay and good afternoon everyone. I’m pleased to report another quarter of strong financial results for Rocket Company. This continued success demonstrates our ability to leverage our flexible platform. I will be sharing some detail around the investments we're making to drive growth and provide insights into trends we are seeing for I will reference some longer term comparisons particularly comparing our 2021 performance on a two-year basis relative to 2019 levels. 2020 was an unusual year for the economy with a combination of historically low interest rate and constrained mortgage industry capacity. Under these market conditions, Rocket exhibited the scalability of our platform with our loan origination volumes growing 121% in 2020 year-over-year while our expenses grew only 47%. Given the unusual year 2020 represented, it is important to look at our growth and profitability relative pre-COVID results. We were successful in gaining market share in last year's environment and we continue to grow our business as we head into 2021. During the second quarter of 2021 Rocket Companies generated $2.8 billion of adjusted revenue which represents a 110% increase from 2Q 2019 and $1.3 billion of adjusted EBITDA, up more than [indiscernible] 2Q 2019 representing a 46% adjusted EBITDA margin. We generated net income of $1 billion which exceeded full year 2019 net income and we generated adjusted net income of $920 million in Q2 2021, which was more than triple Q2 of 2019 levels, representing a 33% adjusted net income margin. Our adjusted earnings per share was $0.46 for the quarter. Rocket Mortgage generated [indiscernible] volume during the quarter, up more than 160% from $32 million in Q2 2019 and in line with the midpoint of our Q2 guidance due to products which include home purchases, term reductions, and cash out refinances represented more than…

Thank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from Ryan Nash from Goldman Sachs. Please go ahead.

Hey, good afternoon, everyone.

Hello.

So, Jay, Julie, you noted in the release that this is the strongest purchase quarter ever and you said you expect to exceed $60 billion this year and you're on target to be the largest retail purchase lender in the nation by '23. Can you maybe just talk about what you're doing strategically to accelerate purchase originations? I know, Jay, you mentioned capturing them earlier in the funnel, and maybe can you just help us understand how is capturing purchase varying by channel, and how are you able to do this and still maintain margins that are decently in excess of the industry?

Yes. As we talked about, we think purchase represents probably the biggest opportunity here at Rocket Companies. Although our purchase volume this year will exceed what was the record purchase volume, I think last year, in retail, excluding corresponded, there is still huge upside for us there. We just recently issued a press release describing our Rocket Homes platform and all that we're building there. And really, we are the only organization that has put together every component required to streamline the purchase experience for anyone in America starting with credit, reports and credit education, moving to a really robust home search website in all 50 states. Our traffic is primarily organic there, so very high-quality traffic, which of course helps with conversion. We've launched our centralized real estate services, which make a more cost-effective transaction for people selling their property. Our FSBO, ForSaleByOwner website is growing rapidly to bring in folks into this marketplace. There are many Americans who can sell their homes ForSaleByOwner. We've got a very robust real estate network in all 50 states for clients who require that level of support from real estate agents. And, of course, tying that all into Rocket Mortgage with our verified approvals are overnight underwrite that empowers real estate agents to know that their client is ready to buy the property. And then our Agent Insight, the portal that we now have, I think, north of 50,000 agents using good visibility to update offer letters - approval letters, I should say. All of those components on the retail side will allow us to bring traffic in and convert traffic at levels, that I think the industry has not seen. We talked about - I talked about our attach rate of 70%, of course, our title company, Amrock, and our appraisal…

Got it. Thanks for all the color. If I could squeeze in one follow-up maybe for Julie. So Julie, the 3Q guide cultural gain on sale in the 2.70% to 3% range, which at the midpoint implies a slight - a tiny uptick from where we were this quarter. Can you maybe just talk about expectations by channels? Do you think we've seen the bottom in the partner channel? And do you think you could maintain retail margins on a go-forward basis? Thanks.

Yes. Our gain on sale margin in Q2 came in at 278 kind of right in the middle of our guidance range there. And as you said, our expectations for Q3 are between 270 and 300 basis points, so a consistent and slightly improved over the last quarter. And we do expect both channels to be above where they were in the second quarter from a gain on sale margin perspective. The mix that we expect to see in Q3 is similar to what we saw in Q2 as well. So it is in both channels that we're seeing that. On the retail side of things, the direct-to-consumer, we also feel very good about our gain on sale margins in that channel and seeing those strong, as I mentioned, so feeling really good about where we are in both channels.

Thanks for the color.

The next question comes from Doug Harter from Credit Suisse. Please go ahead.

Thank you. Actually, it is Tim Chiodo from Credit Suisse, but same team. And I wanted to talk a little bit about Rocket Homes. So you did a great job of covering a lot of those during the prepared remarks. I don't mean to rehash any of it, but I just wanted to see if we could elaborate a little bit more on not only how it drives top of funnel purchase leads, but also helps in converting what I understand is that there is not a lack of purchase leads coming into the Rocket ecosystem. It's just that sometimes they have longer lead time and there is other factors that could come into play. And maybe we could just elaborate on how Rocket Homes helps us bring all that together?

Yes, it's a great question. I think it's an important and a strategic shift in thinking about the purchase lead marketplace. As you mentioned, there's not a shortage at Rocket or in the industry when it comes to purchase leads. The real question is, how do you incubate those leads over a longer time period and to the conversion levels that you need. And to make them work, you've got to have conversion level not just with mortgage, but the combination of mortgage, real estate, title, appraisal and of course, think about the lifetime value. So our viewpoint is different than others, because as we think about a purchase transaction, we also know our 90% retention rate and think about the subsequent refinance transaction. And so -- I think, that's again one of those things, we can't - we don't think about it as a standalone business, we think about it as part of the ecosystem that we've built and that allows us to not only lean in where others cannot, but also get higher conversion rates when others aren't receiving them. The Rocket Pro Insight portal having that information with our real estate partners, so they can see what's going on, there are more confident with us and the conversion rate goes up. The Rocket agents across the country are familiar with Rocket Mortgage, know how to work with us. And so that means information is flowing and the conversion rate goes up, and so all of those things give us a unique advantage. And maybe I'll turn it over to Julie, because maybe to put a little bit more color around how we think about our unit here and the economics around that unit, when we're making decisions to invest in technology or invest in marketing to drive those purchase units. Julie, so do you want to kind of go through that a bit?

Yes, an example probably helpful here in thinking about ecosystem and kind of how it all comes together. If you think about a client who is purchasing a new home say for $300,000 within our ecosystem, if you look at a gain on sale margin in our direct-to-consumer channel, let's say it's a 450 basis points gain on sale margin, we would generate $13,000 -- $15,500 of revenue for this purchase. And then if that client is using an agent in our Rocket Homes real estate network, we would generate an additional $3,000 in revenue, assuming a 1% commission fee and then in addition to that, if you add earmark appraisal closing and title services, and they provide us another opportunity there to earn an additional $1,500. So as you look at this in total and think about all of the opportunities we have, that transaction would generate $18,000. And it really doesn't stop there too. If you think about the other things in our business, we've got Rocket Auto, Solar is coming, we've got personal loans, which are all really natural extensions of that home buying experience and these businesses do have a high correlation to the real estate opportunities getting the reach to the client, the right time to serve their needs, throughout their entire home ownership journey. So these newer business areas that we're adding really help us leverage our platform strength, especially from a marketing, a technology and in clients services.

So, it's putting all these things together, not only does it increase the conversion, which makes our marketing dollar more valuable to us than I think others, but it's also the viewpoint of the lifetime value of that client. And I know something we touched on that I think will be beneficial as we move into the 2022 and beyond is the iBuyer program, we're viewing it again a little differently. We've got 2.4 million folks in our servicing book and we're talking to clients every day, who want to buy a property and are thinking about, can they sell theirs. And so by having that back up offer through iBuyer, we're empowering our client base to move forward with the purchase of a new properties. So it's another exciting component of the ecosystem that we're adding that we will see I think add value and help improve its transactions as we get into 2022.

The next question comes from Arren Cyganovich from Citi. Please go ahead.

Thanks. Jay, I was hoping you could tell us a little bit more about the solar financing opportunity just in terms of what your expectations are in terms of the total addressable market economics and how quickly you'll be rolling out with the product?

Yes good question and there are quite a few different facets to this program. So taking a step back, I think we've more than 2 million solar installations in the U.S. in 2020. They're saying that that will quadruple by 2030. So that means, one in eight Americans will be adopting residential solar power. So remember, we're really in the saving money - helping people save money business as much as we're in the helping people buy homes business. And so, we're talking to clients each and every day, about how they can save money. In many cases that's refinancing the mortgage, but there are other opportunities and we already engaged in those discussions. And of course our discussion is about the bills people pay including their utility bills. And so it's a really natural pivot to have the discussion around what solar might do and so we'll be doing a few different things as we grow this out. Our Rocket Cloud Force will really service solar advisors to our clients. So they'll be using technology to help determine if someone is eligible solar, how it would work and roughly how much money they can save. Then we'll partner with folks who do the actual panel installation and then our Rocket Homes - Rocket Loans technology will be used to - to do the financing. So it's really two options for our clients, one is doing the financing using their mortgage, which we have programs for and the other is doing the financing that we will be providing through our Rocket Loans solution and so that's kind of the second component. And the third, of course, is that to really capture the full value, clients who have already done solar may need to consolidate their solar loan into their mortgage. We've already started that program and of course we will make that program more robust as we continue to move forward. So clients will be refinancing their solar loan, if it's appropriate back into their mortgage as well. So we can help and all three of those areas and we're uniquely positioned because we're already talking to them about their bills, we're already talking to them about their property, we're already in many cases have an appraisal, we understand the size of the property, the roof in many cases. So a lot of this data that others in this industry require or need to really bring value to the client, we already possess. And so, the market is going to grow rapidly and we'll be taking our brand and our Cloud Force and our technology to make sure that we can be a market leader.

Thank you.

The next question comes from James Faucette from Morgan Stanley. Please go ahead.

Yes. Thanks a lot. I wanted to touch on -- you made the comment a couple of minutes ago, where you expect the gain on sale margin for both your channels will improve sequentially. Wondering if you can talk a little bit about, like what you would think will be the drivers there and why that is? And I guess, I would imagine you're probably already seeing evidence of that, but just want to confirm that? And then, I guess as a follow-up, what we've heard from others in the industry is, there seems like there's a lot of overcapacity at least of headcount you're seeing some of your competitors already making moves to address that, but I wanted to get kind of what your sense is and how you think this plays out for the competitors and what Rocket's response is going to be as we kind of go through this adjustment period right now?

I know, Julie touched on where our expenses were in Q1 and Q2 and kind of using that as a reference point for Q3 and beyond, and that's because, although we're growing market share and volume and doing more purchase transactions, our efficiencies in our platform continue to be evident and so we're able to see that growth without having increase in expenses. We also know that continuing to have a platform that's scalable is very important to us. As Julie's always touched on, we're profitable in the first transaction. And so as we see competitors maybe think about reducing the size of their operation, this creates opportunity for us to grow our market share, which is what we believe we will see and what we said here in 2021. We think about this - the play I'll guess I'll use that, we've been running for 36 years and in particular over the last three or four years, is that we set our strategy for growth over the course of many years. A three-year plan is what we really operate off of and we stick to that strategy. And there'll be changes in interest rate of course throughout that period of time, but I think Q2 serves as a good solid proof point that we're able to achieve records. We had - we doubled our purchase size in Q2 of '21 over where we've been in 2020, regardless of interest rate movement, I think Julie's guidance towards where we'll be from a midpoint in rate lock volume also demonstrates our ability to stick to our plan regardless of whether markets are going up or going down. And then the third that I'll say and we touched on this as well, our ability not only through our multiple channels, but our multiple marketing vehicles that we use, really allows us to capture different types of mortgage volumes. Julie touched on the fact that over 50% of the volume that we did during Q2 was not rate sensitive. So, cash out, term adjustment, purchase, as we continue to lean into those things in Q3 and beyond to ensure that we stick to our three-year plan of growth. Julie, I don’t know if you want to touch on any other portions of that question?

Yes, I think you hit it really well, Jay. I think on gain on sale margins, like I said, we are seeing the strength in those channels and we are now excited about where we're at and Jay, I think you covered it well.

Okay, great.

Thanks guys.

The next question comes from Mark DeVries from Barclays. Please go ahead.

Yes, thanks. I had a follow-up question about the purchase originations. Can you give us a sense of where that's coming from, what percentage is coming through direct-to-consumer versus your partner channel? And to reach that goal of becoming the top purchase originator, do you need to become the largest wholesale lender or do you think a meaningful percentage of that comes from direct-to-consumer? And then finally of the 70% kind of retention you're getting from Rocket Homes on the originations, is that coming to you through direct-to-consumer or is it coming through the partner channel?

Yes. So I normally don't break down the specifics between TPO and direct-to-consumer, but remember the things that we can really control from a mix perspective are more on the direct-to-consumer side. The broker will originate the loan that the broker is able to originate and we're happy to assist in any way we can. So you can kind of look at, I think probably industry mix to get a feeling of what that looks like. For us, our ability to market directly to the real estate network, the 50,000 plus that I referenced, our ability to reference directly to the consumer about the value that we can bring in purchase with Rocket Homes, with the ecosystem, that's really our lever to pull, to continue to influence our growth there. And so, although I believe purchase - the growth of purchase we'll see across all channels, we have a larger opportunity when we think about our direct-to-consumer and partner networks to achieve the purchase growth that we're looking for and that's what we've seen before. And as you asked the second question about the attach rate, although we're just now starting to really leverage the ecosystem with our broker partners in particular our Pinnacle partners, we started or have been in the past, more focused on how Rocket Homes ecosystem works with our direct-to-consumer channel.

Okay, got it. Thank you.

The next question comes from Mihir Bhatia from Bank of America. Please go ahead.

Hi and thank you for taking my question. I actually wanted to maybe talk about capital allocation for a second. You're generating a fair amount of capital even in an environment where some of our peers are may be a little challenged. But at the same time your GAAP -- the capital you're generating, you seem to be making a fair amount of other bets in terms of non-mortgage businesses if you will and growing them. Maybe talk about how you prioritize between those versus returning capital? And just that particular areas where you should be maybe making larger bets on - or focusing on? I guess the question is are you spreading is up to [indiscernible] across all these various things that you're trying to invest and grow at the same time as prioritizing the return of capital? Thank you.

I'll let Julie reiterate some of the things we said about our capital allocation strategy. I'll tell you one of the benefits - I've been in the company 26 years, we've been in business for 36 years, maybe 26, maybe 25 and a significant portion of our time is spent on team member and leadership development. And so as our organization continues to grow, we have thousands of leaders in our organization. And one of the questions you have to ask yourself is, how do you retain the top talent that you develop over time, as they search for new opportunities to grow? And so we're really fortunate to be able to leverage our brand, our client base and provide other services that are tied directly into the mortgage that we started with. I'll give you an example, add to specific percentage, but the vast a significant portion of auto buying occurs within the first six months of the purchase or refinance of the home. So we have that data, we're talking to that client, we're servicing that client, we're skilled -- our Rocket Cloud Force is skilled at selling and now we've built the technology to tie those clients to inventory across the country. We just announced that we aligned with some of the largest used car operations in the country. So we're really able to develop a whole new business channel, leveraging all of the things we already possess. So it's not -- I don't view it as like an ancillary or side business because it's so tied into the core of what we do and it allows us to keep our talent. Solar is the same exact thing, which we touched on this, but it's about saving money with your home. It's exactly what we do for millions of people, have done for millions and millions of people and we're doing that at no additional cost to acquire and I am able to take a leader who has been with me for 25 years, who may without a new opportunity, say hey, Jay, now I'm thinking about looking somewhere else for the second part of my career, but instead I am looking to stay here, grow out that channel with all the best practices that that he or she has learned over the 25 years that they've been here and at an incredibly profitable product to our mix. Same with homes, we've already spent half hour talking about homes and its natural synergies with mortgage. So, no, I'm not concerned about being spread too thin because these things are value add to our consumer, highly profitable and leverage the talent that we've got inside the organization. Now Julie, I'll maybe let you talk a bit about the capital portion, but I think some of the question was there, are you dedicating enough capital in all, do we have enough capital for all these things?

Yes, I certainly will. You walked and hear about with lots of capital, yes you move up a little bit of a context around that and as you know we do operate in a capital-light business and our business model is highly cash generative. So we have consistently demonstrated a strong track record of profitability that has allowed us to maintain a very strong balance sheet. So this has given us a great flexibility to actually continue to be very opportunistic. So that's been a great outcome of our profitable business. And just to kind of reiterate how we think about capital, our framework is really very consistent with how we've been talking about it. First and foremost, we're going to look to reinvest in our business through brands, technology and investing in our team members. Then we're going to look at M&A opportunities and if that is something beyond that, we still have additional capital, we look to return that capital to shareholders through either share repurchases or through dividends and currently, we believe, as I mentioned in my prepared remarks that our stock is currently undervalued and given that when we looked at our business and the capital it takes to operate our business, the cash that it takes to operate our business that's been a $1 billion just needed to operate our business. So mining it as of June 30 as I said, we have about $4.4 billion dollars of available cash. So all in with $7.8 billion of total liquidity as we said, this puts us in a great position where we could potentially use both in terms of capital to shareholders either through repurchases or through a dividend as we've done in the past.

Yes.

We're working through our model, but we're in a unique position to not have to choose one of the options, but have the ability to do all of the things that we would like to do.

And then just on that capital point, you do have a buyback in place yet already. Right? So, have you executed anything against it? And I'll get back in line, thank you.

Yes, we have executed against that during the second quarter and you will see that in the 10-Q that's coming up tomorrow.

Understood, thank you.

The next question comes from Ryan McKeveny from Zelman and Associates. Please go ahead.

Hey, congrats on the performance and thanks for taking my questions. I will ask one more about Rocket Homes. So just to dig in a little on the comments and the press release about on staff agents in Detroit, I guess, maybe if you could just share some thoughts around the idea of kind of centralizing agents in Detroit? Obviously on the mortgage side of the business, you've run that playbook very successfully. So when I think about kind of the real estate agent industry, obviously typically very distributed, very face-to-face interactions. So maybe just talk us through how you envision that happening from Detroit, but kind of operating across the country and curious here, how you kind of think through that in the context of how that, how that industry has typically been operated? Thank you very much.

Yes, I think the best word is bespoke and that's what we've been using as we've watched in particular the last two years. And as you know with Rocket Mortgage in particular, first time homebuyers are a pretty large portion of that purchase market for us. That message has come through over-and-over again that I want it to be a streamlined process, I want it to be a digital process and I want to be in control of the process. And so, as we think about that with Rocket Homes or Rocket Homes experience, it's exactly what we've built. And that means you have to have different ways for people to sell or buy homes. And we don't think that, that -- what I think that does is grow the pie. Because there are people today that are not selling their homes because they say well, I don't want to follow the traditional process. In other cases, we've got people who started through the process by owner process and run into a roadblock and would stop, but instead because of our ecosystem, we now refer them to an agent in their local network who can assist them. So all of these things work together to open up, and what I want to tell you is open up inventory and you've heard Julie talk about this. We've got thousands and thousands of people who are verified, approved, ready to buy and the reason they're not buying is because they can't find a home. So how do we open up inventory for those clients? So the one way to do that is a centralized model. Some of our clients may not be ready do ForSaleByOwner, but they may not need be full services that are local in their neighbourhood agent can provide.…

That's great, thank you very much.

The next question comes from Kevin Barker from Piper Sandler. Please go ahead.

Thanks for taking my questions. You mentioned a new broker pricing platform that was introduced and it's been unveiled. Could you talk about how that has an impact at your volumes, particularly in the second quarter and as we flow into the third quarter? And then how we think about retail origination, I mean, direct-to-consumer originations in the third quarter? I believe your previous comments indicated that it seems like you're definitely taking significant market share just given most industry forecasts and have a meaningful decline going into the third quarter? Thank you.

Well, I think you're referencing the brand-new Pricing Calculator that we have built for our broker partners, and it's one of quite a few things that we've been rolling out this year to ensure that our mortgage broker partners really have the best technology and the best experience. We've got, I think somewhere over 20,000 mortgage professionals a month using those broker tools, whether it's the Calculator that allows them to go side-by-side do comparisons to determine the best program for their clients, our Pathfinder tool, which really gives them the answers to underwriting product question, so they can take a very effective application upfront. Those things are drawing brokers in. I think we've seen somewhere here recently over 100 new brokers that have joined our platform here in the last 90 days or so. So that demonstrates that we're drawing brokers to the Rocket Pro platform and I touched on this before, but from April to June in the second quarter, our market share as a total of the broker market, we were just below 18%, and now when we get to the end of June we are 21%. So we're seeing growth in that particular area, I think faster than anyone else and that's because of the technology, the tools that we're providing, the brand that we're providing to our broker partners. It's - I guess the last thing I'll say there and move the things for a while, but you've heard me talk about a bespoke process for homes, giving our consumers choice, it's the same as that thing we'll be giving our Broker-Partners is choice, right. We're not demanding that they use just us or one system, we're saying, hey, use the best partner out there and we believe will continue to invest in technology and other things to give them that choice and draw them in and so far the market share numbers are proving that to be the right decision.

So is that -- and then also is there something in particular that is driving retail margin -- retail originations to be particularly strong going into the third quarter, given the market is showing some decline overall?

I would say it's -- that's us. That's the history that we've demonstrated, the marketing machine that we have, the data science that we have, the brand that we've invested in, the ability to reach into non-interest rate sensitive products as we probably touched on before. This is how we think about executing on our business, as others sometimes decide to pull away or reduce investment as we touched on our expenses there -- that we're giving guidance so that they remain similar to where they were in Q1 or Q2 because we're not pulling away and now you're seeing our marketing machine continue to do what it does and so that's -- I think that, as a result of that is -- is our guidance that we provided for Q3.

Thank you.

This concludes our question-and-answer session. I would like to turn the conference back over to Jay Farner for any closing remarks.

I just appreciate everyone joining the call today. As always, we appreciate the support that we're receiving from the investor community and we really look forward to talking to all of you again when we get to the end of Q3. Have a great night.

This conference is now concluded. Thank you for attending today's presentation. You may now disconnect.