Gol Linhas Aereas Inteligentes SA (GOL) 2015 Q2 法說會逐字稿

Good morning, everyone, and thank you for waiting. Welcome to GOL Airlines second quarter of 2015 results conference call. With us here today we have Mr. Paulo Kakinoff, CEO; Mr. Edmar Lopes, Chief Financial and IR officer; and Mr. Eduardo Masson, Financial and Investor Relations Director.

This event is being recorded and all participants will be in a listen-only mode during the Company's presentation. After GOL remarks, there will be a question-and-answer session. At that time, further instructions will be given. (Operator Instructions).

This event is also being broadcast live via webcast and may be accessed through the GOL website at www.voegol.com.br/ir where the presentation is also available. Participants may view the slides in any order they wish. The replay will be available shortly after the event is concluded. Those following the presentation via the webcast may post their questions on our website. They will be answered by the IR team after the conference has finished.

Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of GOL management and on information currently available to the Company. They involve risks and uncertainties because they relate to future events and therefore depend on circumstances that may or may not occur. Investors and analysts should understand that conditions related to macroeconomic conditions, industry and other factors could also cause results to differ materially from those expressed in such forward-looking statements.

I will now turn the conference over to Mr. Paulo Kakinoff. Mr. Paolo, you may begin your presentation, sir.

Good morning, everyone, and thank you for joining for the second quarter of 2015 earnings release conference call. We are starting our presentation on Slide number 3.

The first half of the year was marked by this huge economic slowdown and by a challenging and competitive environment. On the second item of the left-hand side, we highlight the evaluation of the real by 41% compared to June 2014. In the quarterly average, the US dollar appreciated by 37.8%.

In the last outing, we highlighted the significant drop in the number of corporate passengers due to the country's economic slowdown. Since the end of May, we observed that the value of corporate passengers stabilized followed by a slight recovery in price.

The rising demand in recent months is a result of airfare sales and promotional fares with prices on average about 20% lower than the same period of 2014. In the quarter, the increase in industry supply was a reflection of capacity adjustment which was reduced during the FIFA World Cup held in Brazil in June and July 2014.

In the coming slides, you will see in more detail how GOL has been working with capacity since 2012 as well as our new supply projections for the second half of the year.

In the second quarter 2015, aircraft fuel amounted BRL2.21 to a liter, a decrease of 11.4% compared to 2014. The jet fuel price in reais partially benefited from the 40% drop in price in the international market that it was impacted by the average depreciation of the Brazilian real by 38% in the same period. It is worth mentioning that the Brazilian real was a currency that suffered the biggest depreciation against the US dollar in recent months.

On the same slide on the right, we highlight the quarter's operating performance achieved by the continuity of our strategy, which has been implemented with total focus and discipline.

In the first (technical difficulty) we show an ancillary revenue increase up 14% mainly from the sale of GOL Plus comfort seats and the cargo area. The increase in this revenue line has been mitigating the decline in passenger revenue. The ancillary revenue currently accounts for about 13.3% of total revenue.

Moving on to the next item, we expanded our elite corporate sales for another quarter, accounting for 32.4% of passengers flying for business purpose according to the data published by the Brazilian Association of Corporate Travel Agencies, the ABRACORP.

Another highlight in the period is our leadership in the number of passengers transported in the Brazilian domestic market, a new record for GOL. You will see in more detail throughout the presentation which size-ups our leadership position against our competitors.

I'd also highlight that we record the greatest evolution in load factor among the four biggest airline companies in Brazil. I believe this is a result of our customers' preference for our services and products making the flying experience even better and more effective.

Consolidating our important achievements we have reached over the past years, on July 15, we launched our new brand reinforcing GOL's conservative characteristics with the introduction of new products, services, technologies, and customer care standards, positioning itself at the forefront of the airline industry.

In the past two months, we have launched, in addition to our new brand, the most comprehensive onboard entertainment platform in Latin America and Wi-Fi Internet access as well as strengthening the partnership with Delta, which allowed the expansion of the agreement between both companies. Following the presentation, I will explain each of these important launches in more detail.

Moving on to Slide number 4 shows that the financial results for the second quarter of this year were affected by the challenging environment for the Brazilian economy. In the second quarter 2015, net revenue retreated by 10.5%, reaching to BRL2.1 billion. Year-to-date, we had a reduction of 5% totaling BRL4.6 billion. The operating loss for the period totaled BRL251 million, a decline of BRL290 million compared to the second quarter of 2014, bringing the EBIT margin to a negative 11.8%. EBIT fell by BRL279 million in the first half of this year compared to the same period of 2014, recording a negative BRL98 million with also a negative margin of 2.1%. These results added to the continuing evolution seen in the last nine quarters.

EBITDAR recorded BRL9.7 million in a quarter with a margin of 4.3% and BRL560 million in the first half of 2015 with a margin of 12.1%, a decline of 5.7 percentage points versus the same period of last year.

Total costs have gone up 1.6% in spite of the exchange rate effect, which was much bigger than this. Our commitment and persistence for low cost is key to our business model. Within this topic, I'd highlight that we have been working with renowned consulting firms since the end of last year in order to achieve an even more efficient procedure in supply and all the possible gains that can be achieved from the whole cost structure.

The reality is that the quarter ended in June 2013, the Company and the Brazilian airline industry have gone through one of the most adverse periods in their history. This is due to a combination of country's economic situation and a significant decline in corporate demand.

On the (inaudible) side, on the fifth slide, we show that we have increased the domestic supply by 2.1% and demand rose by 4.8%. The supply increased only because of their comparison base. Last year, as we have already mentioned, we got the FIFA World Cup soccer event in Brazil and therefore, at the time, supply was already reduced. So in comparison to July last year, there was an oversupply, which is not exactly in line with the current economic situation. Therefore, we have already announced for the following period that the Company will continually reduce its offer.

Compared to the comparables in the industry, GOL showed the most efficient results since it increased capacity and at the same time saw demand growth.

To clearly demonstrate leadership in capacity displayed, we will move to Slide number 6. Over the past four years, we have reduced about 14% of our supply in the domestic market, which means a reduction of about 7 billion ASKs. Despite our remaining competitors had followed the same strategy to among the four Brazilian most important airlines (inaudible). And therefore, we still do have an overcapacity in the market in comparison to the current demand.

When compared to the three biggest companies in the sector, we saw that we comparable rent followed the same readjustment strategy and carried about 10% in the same period while compared to two and three increased supply by 54% and 193%, respectively.

The industry grew only 2% in the period. We know that a good expansion of capacity can bring excess supply and possible loss of profitability for the sector. Therefore, we are playing against the whole of leading the market to further capacity decrease.

Following on to the Slide 7, once again showing commitment to its strategy to offering adequate supply, we have reviewed our projection in the domestic market for 2015 and we reduced supply to between 2% and 4% in the second half, which means that we will adjust our capacity for 2015 to stable and minus 1%. We will monitor our developments even further and, if necessary, we can review all projections, especially in such a challenging phase the country's economy is going through.

On the next Slide, number 8, we highlight that GOL has expanded its leadership in the number of passengers transported in the Brazilian market. According to the data from ANAC, we have transported more than 17.5 million customers in the first half of the year, up 2.5% compared to last year. The difference from the airline placed second increased from 1.6 million to almost 2 million customers transported in the second quarter 2015.

As already mentioned on Slide number 9, we show that GOL increased its share of corporate sales by 1.1 percentage point versus the first half of 2014 according to data from ABRACORP. In addition to expanding this leadership when compared to last year's second quarter, GOL has increased the number of tickets by 16.6%, the highest growth among the airlines. Here it's important to explain that ABRACORP stands for almost [80%] of the total Brazilian corporate segment.

The number of associates grew last year and that's the reason why we have shown an increase of the number of tickets issued to the corporate customers from the ABRACORP. Actually, the size of the cake has been reduced since last year but the number of other corporate associates has increased. That is the only reason why we had the information that our participation has grew and at the same size as the number of tickets issued. But the total corporate segment has decreased.

On Slide number 10, we can recognize the clear results of our team's efforts to consolidate the FIP as the most on-time airline in Brazil. We expanded our leadership in on-time performance in the first half of this year. 9-to-5 was 31% or 2% of our flights took off on time in the period according to the data from [Infael]. For more than three years, GOL has been reaching figures above the industry averages and we have evolved it since 2012 by 3.5 percentage points.

Slide number 11 shows GOL's evolution in efficiency and productivity compared to 2012. From a human resources perspective, the net revenue per employee ratio evolved to almost 37% since that year. Seat demand for number of employees ratio grew 21% on a same comparison basis.

On the Brazilian side, GOL also presented a constant evolution and pressured the net revenue generation per flight by approximately 34% since 2012 and improved the fuel consumption per RPK ratio by almost 14.5% in the last four years. And here, we are talking about pure conception without any gain in fuel prices.

On Slide 12, we show the strategic partnership between GOL and Delta. Aimed at further enhancing our agreement and our liquidity, we announced on July 10, 2015, a financial operation between GOL, its controlling shareholder, and Delta. This operation, when implemented, provides for a capital increase of up to $90 million by the controlling shareholder and up to $56 million for Delta as well as [leveling off] up to $300 million with Delta as a guarantor.

Our first (technical difficulty) of these operations our cash position will be even more reduced within an addition of BRL1.5 billion, ensuring the continuity and sustainability of current projects as well as the dedication of our strategic planning, especially in such a challenging and volatile phase the country's economy is going through. On top of the current BRL2 billion, this additional BRL1.5 billion will give us the highest level of cash and liquidity already achieved by the airline since 2001, since the beginning of its operation. However, that was BRL3 billion in absolute terms.

On the following slide, the number 13, at an even better flying experience for our customers, we announced with industry-leading solution connectivity and on-board entertainment platform with Wi-Fi Internet access. This solution will also allow access to live TV channels that will include streaming of movies, cartoons, series and games, pay-per view content, music and in-flight map. All of this online and off-line content can be easily accessed through a mobile device such as cell phone, tablet or the customers' own notebook. I emphasize that GOL is the first airline in Brazil, South, and Central America to offer this complete connectivity package to customers, including Internet.

Finally, on Slide 14, we launched on July 15 our new brand that consolidates all the achievements reached over the past years, and pointing out that GOL will maintain its innovative characteristics with the introduction of new products, services, technologies, and customer care standards, positioning itself at the forefront of the airline industry. The new logo was based on credibility, reliability and safety, representing the link that unites and brings people to destinations, whether it's a dream or a reality. The new brand has a more reduced and geometric outline in order to become more modern, strong and contemporary, in line with the Company's history. That same day, we also celebrated the release of the 100th aircraft received directly from Boeing, which is already flying across Latin American skies, including our new brand.

Now, I would like to give the floor to Edmar who will present in more detail the financial results for the period. Edmar, please.

Good morning everyone. Thank you, Kakinoff. I will invite everyone to go to Slide number 16, where we show the main numbers of the Company. As it has been already pointed out by Kakinoff, we are in a very challenging scenario here and the numbers show that.

On the top line, we're seeing a decrease for the quarter of roughly 10% and for the first half of the year 5% down. And this is primarily due to the scenario here in Brazil.

On the cost side, we are running flat and we are suffering on one side the pressure from the devaluation of the real that affects our leases, maintenance, and some of the expenses, but we are having some help here from the lower price of our fuel.

In terms of EBIT, we are seeing that this is the first quarter that we show a downturn after nine positive quarters, and the margin came down to minus 11.8%.

In terms of the metrics, we are seeing yields coming down, as previously announced, by 17%. We have mitigated that by raising load factors. So PRASK and RASK decreased at lower rates (technical difficulty) but still affecting topline and CASK, as I mentioned, very much in line roughly at BRL0.20 and the mix has changed. The mix is softer on the fuel side and heavier on the ex-fuel side.

Moving on to Slide 17, this is chart that we have been showing frequently. Just to highlight that, in two years, load factors went up by 9 percentage points, use that up on a two-year span. But if you look at the numbers from second half of 2014, we can easily see the trend that we are suffering of pressure on the demand side.

On the CASK, we have this chart on Page 18 where we highlight the drivers. I would like to say that, as of today, ex-fuel CASK is affected by the devaluation of the real at a 30% level. So, it means that if the Company was let's say in a sense to move, ex-fuel CASK would be close to BRL0.14 just because of the FX. We're showing a number of BRL13.76 million b- sorry BRL13.1 million, and this is primarily related to the measures that we are taking here. I would like to highlight a few of them in terms of what is happening here, and we have more details on our press release.

On the other side, we have the annual b- the adjustments. This is at BRL23 million roughly. We have in-sourced some of our labor as well to benefit from the lower burden on the actual regime that may not stand for next year. We have also increased personnel because of the opening of new stations, part of our strategy of increasing and having a wider network.

In terms of our leasing, this is allowing that the FX hurts very well. As part of the fleet management, we have four aircraft less than we had last year by this time of the year, although we are producing the same number of ASKs.

On the topic numbers here, we'd like to highlight that the main driver for the increase here is what is happening with Smiles. Smiles has grown and Smiles buys more tickets for its partners' airlines and frequent flyer programs. And most of them are denominated in USD in our long-haul business.

Maintenance and depreciation are down primarily because we are reviewing our schedule of events and trying to be let's say as smart as we can. And I would like to highlight as well the commercial side. You know fraud was an issue here. Losses with the credit cards was an issue here last year and this year, just for the quarter, we have roughly BRL20 million now, showing that indeed all the efforts done by the Company have come to a success and that is helping us as well.

I would like to highlight that the amount of pressure that we're seeing here is also related to the number of passengers that we are carrying. You know, you saw the numbers. We are carrying more people every quarter and then as well we are improving our services. Not only we have b- we have added or we launched, if you will, the free services as of July but we are also improving the services in our international flights.

Moving on to Slide 19, this is very clear. I have mentioned that. This is just a pie chart of where our exposure to the FX stands nowadays. 50% of our costs are USD related and out of those, 15% are on the ex-fuel side.

On Page 20, this is a chart that we -- it is a new chart. And the main message here is the Company is improving its services. The Company is growing diversity and, at the same time, it's improving our efficiency and reducing its costs. So, we have a lot of initiatives as for procurement, for lean structures. We are changing the network when needed. We have efficiency programs in airports, in crew. The message here is that we are simply attacking, aiming or reviewing every single piece, every single stone that we can do, whatever, in our reach as for the cost side.

Moving on to the next slide, it shows that we still are very competitive if you compare us with our peers, not only in the region but also companies that have the same business model. You know the FX of course affects the numbers.

Moving onto the next slide, Slide number 22, I would like to highlight the comparison between the fourth quarter of 2012 and the June quarter of this year. If you look at the total debt, you will see that the total debt is stable. What is happening with our leverage here is that the airfare is affecting it. So, we should expect some more volatility in the next month.

Slide 23 shows the amortization profile that we have. By June 30, we have paid BRL352 million. We have another BRL700 million coming this year. With the level of cash that we have and the tools that we have in terms of liability management, we think it's a very comfortable scenario. And in fact, Smiles has already paid the BRL56 million shown in this chart, paid out early July. So again, the target here is to have an amortization profile that will give us some comfort, feed the scenario (technical difficulty) stays challenging for a while.

Next page, this is 24. We show the chart that compares our cash position with the remaining companies, especially here in the region. This is before the characterization and market -- capital market assets that we are looking here.

Page 25, this has already been already announced and touched by Kakinoff. We are reviewing the offer for the domestic market. The message here is that we will cut capacity primarily in the second half of this year up to 4%. It will of course change the outlook for the year.

This is what I have for today. I will give the floor back to Kakinoff, and please go ahead.

Thanks, Ed. Moving to Slide 26, we would like to end our presentation with the following message. We are still on track with the reduction of our capacity announced today (technical difficulty) market conditions. We will keep the focus on ancillary revenues and continued efficiency and cost control gains despite the foreign-exchange rate and inflationary pressures. We are working incessantly on our network, which has consistently improved to better serve our customers and to be the most profitable among the airlines. We strive to improve the Company's value proposition of the products launched in the past two years and those that we will be introducing soon.

We also start a partnership with Air France KLM this year, an agreement that will have the same effect as the one we have with Delta and for three years with service through two-way culture. This is alongside the support given by the other in this moment of volatility and economic weakness.

And finally, the maintenance of liquidity with cash reinforcement of BRL1.5 billion completes the presentation of the Company's strategic pillars.

Now, I would like to thank you all, close this presentation and move to the Q&A session.

(Operator Instructions). Mike Linenberg, Deutsche Bank.

Edmar, Kakinoff, good morning. I guess just a clarification here. So, your operating margin guidance for the year, are you maintaining the 2% to 5%? Because I know the English press release, on Page 4, it looked like it was being revised down to a range of 2% to 3.5%, but on the slide 2% to 5%. Can you just clarify that?

Hi Mike, we're going to check that, but the guidance that the margin is not changed.

Yes, good. Okay. It's on Page 14 of the English press release it (technical difficulty) 3.5% is the high end.

Okay. We're going to check that. Thank you.

Perfect. And then my second question, and I guess this is for you, Edmar, as well. When you look at your fleet, how many aircraft do you have equity in where you could utilize a sale-leaseback? How many 737s that you have where there's an opportunity to monetize for cash if you had to?

Hi Mike. We have 40, 40, okay.

Okay.

We are not -- Kakinoff answered about our future strategy in Portuguese. So if you want to have a look and translate that, he has expressed all of the tools that we may use, and this is one of them.

Hi Mike. It is Kakinoff here. Along the last two years, we have built together with Boeing and our lessors some flexibility in the contracts to either to postpone or to put ahead the levers and redeliver. So that means those two flexibilities in combination with the possibility to further send aircraft to Europe through the subleasing alternative developed with Transavia and SunExpress, express then quickly give us the opportunity to either increase or reduce the fleet size.

Nowadays, we are -- our capacity to reduce or enlarge the Company's size is 30% bigger than our main competitor. And when you compare the Company's size, the number of ASKs, I mean our capacity in March 2014 in comparison to December, you see that the Company can expand itself by 34%. Actually, we can do the same with other rates. So the Company is prepared to further reduce its capacity whenever it seems to be the right choice.

Okay, thanks Kakinoff, very good that thanks Edmar. Appreciate it.

Stephen Trent, Citi.

Good morning Edmar and Kakinoff. This is actually Kevin Kaznica filling in for Stephen. And I just wanted to make sure I heard correctly. So we should be going off the operating margin guidance from the slide deck, so the 2% to 5%?

Yes. We're not changing the guidance for the margin for full year. It's between 2% and 5%. And I had to double check over Page 14. I'm just seeing. maybe I'm getting old but I'm just seeing 2% to 5% despite the high market volatility. And surely we cannot change any kind of future perspective right now. It's mainly the jet fuel side and the exchange rate like a roller coaster. We are just keeping our current guidance based on the following assumptions. Last year, second half of the year results of the Company were at 6% EBIT margin. We would need to achieve basically the same results in the second half of this year to stay at the bottom portion of the current valid debt. So we, for a while, would be keeping the same guidance already in former too. Okay?

Okay, thank you. Thank you, very helpful. Then can you maybe comment on any implications from tax policy proposals like the payroll tax, PIS, (inaudible) etc. and what you might think might happen and whether or not Avair is playing any role in lobbying efforts on your airline's behalf?

I can -- the only thing we can say is that the current Brazilian Congress turmoil probably, it's unlikely to vote in those matters this year. We do not see any impacts on those subjects for the period of 2015. So I cannot -- even that or when this turmoil, the political turmoil in Brazil, will come to an end. But meanwhile, we did not think that even a decision taken this year will be effective whilst it's going to take some time between the decision and it becomes a law. So, I do not foresee any major change on those items for this year.

Great, great, very helpful. And then kind of coming back to the guidance question, your guidance still maintaining your margin, at least on the slide, that the second half should be better than the first half. Would this be explained by seasonality or are there other drivers that expecting? And also how confident are you in the FX portion of your 2015 guidance?

You said seasonality? So the first I'd say signs of a yield recovery which has appeared by the beginning of this quarter. I mean nowadays we are foreseeing a slight recover in yields. We also are working on the cost side in order to fully mitigate the exchange rate effect. So surely, that guidance is under analysis on a daily basis and we will come back to you in case along the following weeks. Due to this such a volatile environment, it would be needed to revise or to revisit that guidance. But meanwhile, we are keeping it.

Okay. And then just my last one. Do you have any color on competitive pressures you are seeing off of like Azul and Avianca Brazil? Do you see any indication that guys will follow your and LatAm's example in terms of capacity?

(technical difficulty) do not have it.

Kevin, slide number -- this is Edmar here. Slide number 6 will have the title. GOL is doing its part. Okay? This is how we see that.

Okay. I was just wondering. It seems like a couple of your competitors were advantageously grabbing market share at the expense of other players. So we were just wondering if you saw any indication that they're actually going to rationalize their capacity as well.

I issue that often. We don't know.

Okay, great. Thank you.

Duane Pfennigwerth, Evercore ISI.

Hi, good morning. This is Jeff Eisenberg in for Duane. So just following up on that last topic, if the exchange rate that prevails in the second half of the year is well above 3.15, do you see any jeopardy to your operating margin range of 2% to 5%.

It's just so far, the average FX for the year has been 3.05. This is closing data as of yesterday. This is one.

On the other side, we have fuel coming down by more than 20% in the last month. So, what I'm trying to say here is that we have a lot of moving parts but as you know, there is aside where we show that the FX accounts for 50% of our expenses.

So if the FX evaluates, yes, it should hurt us, and yes, we are challenging to go for the lower part of the guidance. We need to repeat the margin that we have on the second half of last year, between 5% and 6%.

Okay, thanks for that. And then I guess can you talk more about your domestics? Which markets are you cutting? How bad were they in the environment? And how do you think that they're going to help boost margins in the second half?

Actually, we are counting three questions instead of destinations. So there is no material -- no material change related to destinations.

But are there any specific markets or areas that were particularly weak that you're looking at or is it more like you are saying it's coming across the board instead of cuts?

(technical difficulty) Did you listen to it? We said across-the-board, okay? Hello? Are you listening to me?

Sorry, I don't think I'm hearing very well, but thank you for taking the questions, and yes.

Thank you.

Bernardo Velez, GBM.

I was wondering if you could give us some insight regarding your capacity cuts for the second half of the year. And specifically, I'm trying to match the reductions with the ones announced by LatAm. Would you say that you might be expecting a probably stronger environment than they are or does it have more to do with the flexibility to cancel or change some of the flights or in the case of subleasing or even grounding some of your fleet?

To better understand the field, we need to look on the historical series. We have -- we started this capacity reduction already in April 2012 and we have cut since then 14%. What LatAm is doing now is somehow catching up the same capacity reduction curve that we have designed since then. So that's the reason I believe there is a gap between their capacity curve and ours. So basically even with that announcement in a long period of analogies since 2012, LatAm Group still cut less than GOL did. So that's probably the reason why there is a difference now in their announced cuts.

Okay, perfect. And how does this capacity reduction mean in terms of cost and headcounts?

Bernardo, this is Edmar here. First, we're not planning to ground any planes, going back your first question. We're not planning to lay off any number as of people here because, as Kakinoff mentioned, we're taking out some frequencies. So we will be touching mostly the same places in Brazil, you know, and what we think is we will have some savings on the extra hours side because of the law here in Brazil, how we deal with that. So overall, the Company will remain primarily the same size.

We have already scheduled some leasing redeliveries to happen at the second half of this year and we were supposed to take new aircraft to replace those (technical difficulty) taken it or taken them was, as I have mentioned, we have some flexibility related to the Boeing contract. And therefore, we can take some planes out of our fleet too that way.

And the natural crew turnover has been not replaced since May, and therefore, we will be able also to have a lower number of crewmembers matching this cut in capacity. So we are not giving any kind of further disclosure on those items once it approaches a cut of our strategic development along the following months.

Okay, perfect. And Edmar, you were mentioning the flexibility of your fleet. Could you give us more color on how much incremental, decremental planes could you have by year end and probably into 2016?

Between 5% we can take out of our fleet. I would say easily considering the complex flexibility and also the subleasing, the transfer of those aircraft via subleasing to the European market being operated by Transavia and SunExpress. Those are airlines today operating seven of our aircraft in the European high season. So, we could send them either more aircraft or attend another request coming from different European airlines, mainly leisure flyers. Those are pretty much interested in getting those subleases during the busy, low season.

Okay. And I mean if you continue subleasing these aircraft, would there be a loss associated from the spread between the price you paid for the lease and the ones you received for the sublease?

Not at all. That's optimal operation.

Okay, thanks a lot. I'll let someone else ask a question.

Excuse me. This concludes today's question-and-answer session. I would like to invite Mr. Paulo Kakinoff to proceed with his closing remarks. Please go ahead, sir.

I just would like to thank you all very much for the attention and wish you a nice weekend. Thank you very much. Bye-bye.

That does conclude GOL Airlines' conference call for today. Thank you very much for your participation. Have a nice day.