My name is Louise [ph] and I will be your conference operator today. At this time I would like to welcome everyone to the Universal Corporation Second Quarter Fiscal Year 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions]. Thank you Ms. Candace Formacek, you may begin your conference.

Great. Thank you, Louise [ph] and thank you all for joining us. George Freeman, our Chairman, President and CEO; and Airton Hentschke, our Chief Operating Officer, and Johan Kroner our Chief Financial Officer are here with me today and will join me in answering questions after these brief remarks. This call is being webcast live and will be available on our website and on telephone taped replay. It will remain on our website through February 5, 2019. Other than the replay, we have not authorized and disclaimed responsibility for any recording, replay or distribution of any transcription of this call. The call is copyrighted and may not be used without our permission. Before I begin to discuss our results, I caution you that we will be making forward-looking statements that are based on our current knowledge and some assumptions about the future and are representative as of today only. Actual results could differ materially from projected or estimated results, and we assume no obligation to update any forward-looking statements. For information on some of the factors that can affect our estimates, I urge you to read our 10-K for the year ended March 31, 2018, as well as our Form 10-Q for the year-ended June 30, 2018 which was filed with the SEC today. Such factors include, but are not limited to, customer-mandated timing of shipments, weather conditions, political and economic environment, government regulation and taxation, changes in currency, industry consolidation and evolution and changes in market structure or sources. Finally, some of the information I have for you today is based on unaudited allocations and is subject to reclassification. In an effort to provide useful information to investors, our comments today may include non-GAAP financial measures. For details on these measures, including reconciliations to the most comparable GAAP measures,…

[Operator Instructions] first question comes from the line of Ann Gurkin. You can ask your question.

I wanted to start on with, if you will give us any more detail on your strategy. So you talked about exploring growth opportunities. Any other detail you can give us timing, areas, any other detail behind that statement? A – George Freeman: No, we’re in the exploratory stage, we’re taking a diligent disciplined approach. I can promise you that anything we do will continue our tradition of adding value to our shareholders.

Okay and then same question goes to focused on reducing cost, improving cost in the supply chain. Any other detail you can give there or opportunities?

What we have seen and recently and we have managed our operations this way, is that we do see additional volumes coming through our factory through some arrangements and business that we concluded with some of our customers. This is very important and what you have seen over the last few years some decisions that we have taken like we have two factories in Brazil, one in Santa Catarina, one in Santa Cruz. We shut down our Santa Catarina firstly the constantly rate of the volumes by reducing big time our conversion cost. The same happened in Hungary where we continue sourcing green tobacco, but we’re processing those tobaccos in our Deltafina operation in Italy, so we have consolidated processing in Poland, in Mexico. So these are very good examples of our drive for cost reduction in our operations.

Okay, that helps. Thank you. And then the operating margin for North America showed a nice improvement from Q1, but down from last year so is that reflecting processing or how should I think about that margin as we move through the year given the smaller crop in the US, but it looks like maybe you gained business, I don’t know can you help me with that.

Well and I would say that, it’s a little early in that season to really kind of look at the margin percentages comparison the later quarters are going to pickup more of the volume that we’ll see, that will be more comparable I think also there are – were some changes from the weather that might affect from the styles and types of leaves and we’ll know more about that as we see those results coming out in the second half.

Okay and then you talked about higher volumes in Asia, largely from China. Can you explain that to me like what is going on there?

Yes we have definitely a very good relationship with our Chinese partners and within this sea opportunities which available stocks in China to select some specifics rates and we market these grades for some of our key customers.

So this is kind of one-time business you got you think or is this building on a longer term?

It is building for a more longer term prospective, yes.

Okay great and then any issues with tariffs on leaf trade that you can update us on?

Yes. Definitely the tariffs here’s in US have a big impact for the US market but in our case we don’t see a material impact of our operations.

Okay and then Candace do you have a worldwide on committed leaf number. Any update?

Ann, I don’t have an update. I think the next one comes through at the end of October, so we’ll have that for you next time.

Okay, that’s great. Thank you all. It was great. Thank you for your time.

There are no further questions at this time. You may continue.

Very good Louise [ph]. Thank you all for joining us and we’ll speak with you next quarter. Good night.