MorphoSys AG (MOR) 2012 Q2 法說會逐字稿

Ladies and gentlemen, welcome to MorphoSys presentation of the Q2 results 2012. Please note that for the duration of the presentation, all participants will be in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions.

(Operator instructions).

Now, I would like to turn the conference over to Mario Brkulj. Please go ahead, sir.

Good afternoon and welcome. This is Mario Brkulj, Senior Manager Corporate Communications and Investor Relations of MorphoSys. With Claudia currently traveling it's my pleasure to welcome you today to our Q2 2012 conference call and thank you for participating.

With me are Simon Moroney, our Chief Executive Officer and Jens Holstein, our Chief Financial Officer. During the call we will talk about the Company's financial results for the first six months of 2012. Simon will start by giving you an operational overview of the second quarter. Before we open the call for your questions, Jens will review the financial results of the first six months of 2012.

Before we start, I have to remind you that during this conference call we will present and discuss certain forward looking statements concerning the development of the MorphoSys technology, the progress of its current research programs and the initiation of additional programs. Should actual conditions differ from the Company's assumptions, actual results and actions may differ from those participating. You are therefore cautioned not to place undue reliance on such forward looking statements which speak only as of the date hereof. I would now like to hand over to Simon.

Thank you, Mario. And also from me, a warm welcome to the call. This was a quarter of solid operational progress. Today's focus will be on our main value driver, our pipeline which continued to develop well as we reported advances in several proprietary and product programs. In total, 73 programs are currently ongoing with two new programs we started during the quarter. The number of programs in clinical development is 20 and several programs are tracked phase two clinical trials by the end of the year.

Referring to slide five of the presentation, I'll start the review of Q2 with our proprietary product portfolio. With our most advanced program, MOR103, phase Ib/2a trial of rheumatoid arthritis patients is complete. We are on track to report clinical data during this third quarter. For your orientation, we expect to make an announcement second half of September. We also expect to be able to announce results of the phase I study in healthy volunteers for subject to use formulation of MOR103 for the quarter. Meanwhile, the phase Ib trial of MOR103 in multiple sclerosis patients continues on track.

Second most advanced program in our proprietary portfolio is MOR208, being developed for B cell malignancies. Enrollment in the US phase I trial in CLL was completed during the second quarter and we'll report the results of this study later in the year. We published some exciting preclinical data t the ASCO conference in June, which showed synergistic effects on target cell killing in models of lymphoma when MOR208 was combined with four different existing kinds of therapies including the anti CD20 antibodies Retuximab and [ofitumimab].

To round out the proprietary portfolio, the ongoing clinical development of MOR202, the multiple myeloma continues as planned.

With the reference to slide six of the presentation, moving on to our partner pipeline, the main news during the second quarter was around gantenerumab, the HuCal anti amyloid beta antibody being developed by Roche for Alzheimer's disease.

Following discussions with regulatory authorities, Roche has upgraded the ongoing phase II study to a phase II/3 potentially pivotal trial. This is a major event which means, of course that given a favorable outcome to the trial the filing for registration of the drug may be possible.

I'm sure you're all aware of the [bapinusimab] data that was recently released. I want to make clear that although bapinusimab is also an antibody targeting amyloid beta for the treatment of Alzheimer's disease, the data is of limited relevance to gantenerumab. The main reason for this is that the two antibodies are being tested in different patient populations. Whereas the ongoing phase three trials of bapinusimab are being conducted in mild to moderate Alzheimer's patients, gantenerumab is being developed in [prodromal] or early stage suffers. This is an important difference which reflects current understanding of the disease. Namely that once symptoms appear it may be too late for therapeutic intervention and that the best chance of treatment is to intervene at the earliest possible opportunity to prevent the damaging effects associated with the buildup of these amyloid plaques.

Gantenerumab is the most advanced antibody being developed in this way. Needless to say the medical need and commercial opportunity are enormous.

With reference to slide seven of the presentation, while gantenerumab is the first partnered compound to enter late state clinical development, several programs have the potential to progress to this stage fairly quickly. More specifically, various active phase II studies for three Novartis compounds, including BHQ880 in cancer and BYM338 in musculoskeletal diseases as well as the Janssen compound CNTO888 in idiopathic pulmonary fibrosis are scheduled for completion by the end of this year. As a result, we could see clinical data being published by our partners for a number of these studies. Success in phase II could also mean of course additional phase III programs adding maturity to our pipeline.

Turning to slide eight of the presentation and regarding other partnered programs there were several developments during the second quarter. First, our partner OncoMed presented data on both currently ongoing HuCal antibody programs during and after the end of the quarter.

Most importantly, phase I data on the [antinotch] antibody OMP-59R5 presented at ASCO showed that the antibody was generally safe and a maximum tolerated dose was established. For OMP-18R5, OncoMed published preclinical data demonstrating potent anticancer activity and synergistic activity with standard of care chemotherapeutic agents of the antibody in multiple human to human models.

Second, as reported on clnicaltrials.gov a phase II study by Novartis evaluating the safety, tolerability and efficacy of BYM338 in patients with sporadic inclusion body myositis has been completed. This HuCal antibody is also the subject of the further phase - further two phase II trials.

Third, our partner [Bioholtcare] received orphan drug status in the US for BAY94-9343 for the treatment of mesothelioma. This drug candidate is an antibody drug conjugate comprising a HuCal antibody against the target mesothelin linked to a metanzenoid toxin. The program is currently in phase I development.

To complete the updates on partner programs, our partner Janssen has reported commencing a new phase II trial off the HuCal antibody CNTO1959. In this study, CNTO1959 will be compared with the marketed antibody Stelara in about 250 rheumatoid arthritis patients. Meanwhile, development of CNTO1959 in psoriasis continues in separate phase I and 2 trials.

I'll conclude my operational review with AbD Serotec. The research market, which is heavily dependent on public research funding continues to be challenging and this is reflected in AbD's results this quarter. This is one of the reasons why the focus is increasingly on diagnostics and larger technology and/or collaborative transactions we see these larger opportunities as being the main drivers of both revenue and profit for AbD for the remainder of the year.

Meanwhile, we continue to focus on antidrug antibodies where our HuCal technology is particularly suited, the first products are already available, antibodies against Rituxan, Herceptin, Campath and Avastin. New products for determination of Humira, Stelara and Remicade will follow shortly.

That concludes my review of the quarter, I'd now like to hand over to Jens for the financial update.

Thank you, Simon. Ladies and gentlemen I would now like to guide you through the most important financial figures of the first six months of 2012.

Total group revenues amounted to EUR33 million in the first six months of 2012 compared to EUR66.6 million in the same time period of the previous year. This decrease is still mainly a result of the significant one time milestone payment we received in Q1 2011 from Novartis, due to the internalization of our HuCal platform at Novartis' premise in [balto].

Total operating expenses decreased by approximately 20% to EUR35 million compared to the first half of last year. The main reason for this development was a 25% decrease in R&D expenses to EUR21.2 million. R&D expenses for proprietary product and technology development activities decreased EUR12.3 million.

As we already explained in our Q1 call, reduction results from the fact that costly production steps were already extended from 2011 and the phase Ib/IIa trial for MOR103 in RA is meanwhile completed. Our SG&A expenses also decreased by around 8% to EUR10.6 million. In the first six months of 2012 the EBIT amounted to minus EUR1.9 million, compared to EUR21.5 million in the first half of 2011. The net loss of EUR1 million corresponded to a diluted loss per share of $0.04.

Let's now have a closer look at our segment reporting. As in previous periods, nearly three quarter of the total revenues arose from the therapeutic side of our business with partner discoveries generating EUR23.4 million in the first half of 2012 compared to EUR56.1 million in the previous year.

Revenues in the proprietary development segment amounted to EUR0.8 million. Those revenues have been generated by our funded research activities for Novartis in connection with the two predevelopment programs into which MorphoSys has the option to opt in after the discovery phase.

Looking at AbD Serotec, you can see that the revenue is slightly decreased to EUR8.8 million in the first half of 2012 compared to EUR9.4 million in the first six months of 2011. The decrease is a reflection of a weak second quarter driven by an especially low demand in the research market.

Coming to slide 12, let's now take a look at the balance sheet. MorphoSys cash, securities and interest bearing assignable loans amounted to EUR133.5 million at the end of the second quarter. Our funds, together with the Company's sound financial performance of create value for the Company and our shareholders, especially in today's market environment. As most of you know, our cash is reserved for selective strategic transactions which strengthen our core business. The acquisition of [sloling] on the technology side and the in licensing of MOR208 on the product side could act as role models for the kind of transaction we are looking to secure.

Before we open the call for your questions, we would like to reconfirm our financial guidance for 2012. With a number of commercial discussions currently ongoing, we're confident to see an increased dynamic in our top line results in the second half of the year, compared to the first six months of last year and this year - I'm sorry, not of last year, so the first six months of 2012.

As before, total group revenues are expected to amount to EUR75 million to EUR80 million this year. As previously explained, this guidance doesn't reflect a potential successful out licensing of any of our proprietary programs, which could significantly increase revenues.

Expenses for the proprietary development activities will mainly include the clinical development of our most advanced [drug additive] as well as the development of the new technologies and are expected to be between EUR20 million and EUR25 million.

For 2012, we anticipate an EBIT in the range of EUR1 million to EUR5 million. Ladies and gentlemen, that concludes my [review] for the first six months of 2012 and I now hand back to Mario for the Q&A session. Thank you.

Thank you, Jens. We will now open the call for your questions.

(Operator instructions)

The first question comes from the line of Gunnar Romer from Deutsche Bank. Please go ahead.

Good afternoon, everyone. Thanks for taking my question. First question is regarding the guidance outlook for the second half. You already mentioned that you're in ongoing discussions. I was just wondering to what extent you expect potentially higher revenues also in your partnered business excluding what is already ongoing? And, to what extent this really refers to [elanthia]?

Then, secondly on the outlook for AbD, what are you seeing currently? Is there potential for improvement in the second half as well or do you think current trends would continue for the next couple of quarter? And the last question, you indicated that you've started two new programs but I didn't really get what these were. If you could repeat this please.

Sure, Gunnar, thanks for joining the call today. First of all, in terms of the guidance question, and where the revenue is coming from. We don't want to characterize that in detail, just let me say that as you know, we have a number of technologies, a number of existing partnerships. We're in a number of discussions with potential new partners. We have good visibility based on the status of some of those discussions and that visibility gives us the confidence to be able to confirm our guidance for the full year. But what we don't want to do at this stage is characterize with any precision about precisely what -how those collaborations or deals or partnerships may look, what technologies may or may not be involved and with whom they may be. But as I say, the visibility is sufficiently strong that we're happy to confirm our guidance for the full year.

Regarding the question about AbD, as we mentioned during the presentation the research market is definitely weak. A lot of the scientists that are our customers who depend on grants from governments around the world, a lot of that grant funding has dried up to a large extent and the growth in that research market is close to zero, quite frankly at the moment. So - and we don't expect that to change in the near term, certainly not before the end of the year. Nevertheless, we're confident that AbD will reach its targets, but the kinds of opportunities that we're looking at are rather larger deals with companies, commercial organizations, rather than selling antibodies to individual researchers. And as we mentioned, our increasing focus on bigger opportunities, diagnostics for example, helps us and will help AbD to reach its targets for the remainder of the year, rather than relying on that basic research business.

Coming to your third question regarding the two new programs. Just to be very clear, these were two new program starts and we haven't, I believe, indicated where they came from, the origin of those programs, but you should have seen that they are new discovery programs, so they're coming in right at the front of the pipeline.

Okay, thank you. But just with regard to the two new programs, that would mean that you have discontinued two as well?

No, because the count at the last call, Q1, was 71.

Right. Okay.

So, we added two now so that makes it 73 now.

Okay. Then one final question on MOR103 and the upcoming data points. I mean you're already pretty precise in terms of timing, I was wondering whether this was just relating to the phase I/2 trial or whether we should expect subcutaneous data also in the second half of September.

Yes, we haven't finalized the timing of those two announcements with precision, but we expect both sets of data to be available roughly around the same time and so precisely when we'll announce them we haven't yet finalized, but roughly around the same time.

Okay, thank you.

The next question comes from the line of [Daniel Wendell] from [Comet Bank]. Please go ahead.

Good afternoon and thanks for taking my question, two if I may. Starting off with your chart on page - on slide four, question from my side would be if you haven't specified the various partners and for preclinical and discovery projects and aside from that account and [six] Novartis partner programs as well as co development programs, could you quantify the total number of programs you are working with or you have been working on for Novartis. That would be a helpful number for me.

And second question would be on your investment guidance for proprietary [on D], is it fair to assume that you would rather be in the lower half for 2012 than in the upper half of that guidance range? Any comment there would be helpful as well. Thank you very much.

Okay, Daniel, thanks for the questions. I'll - let me take the first one and then Jens will take the second one. So in terms of the total number of Novartis programs, to tell you the truth, I don't have the precise number in mind, but I think it's fair to assume that its more than half of the total number or around half, somewhere in that ballpark.

If you need a precise number, we may be able to get that to you, but as I say, the orientation it's around half approximately.

So maybe a quick question there, so half of the partner programs, or half of the 73 overall.

Half of the partner, sorry.

Yes, okay.

30 odd, low 30 something like that.

Okay.

And on the R&D expenses for proprietary, its - I mean we just reiterated our guidance for 20 to 25 and we would like to keep it at that level. We haven't specified it nearer and I wouldn't like to do that at this point in time.

Yes, fair enough. Thank you.

The next question comes from the line of Gary Waanders of Nomura Securities. Please, go ahead.

Hi there. Excuse me. Just a question on the AbD Serotec revenue and the focus on diagnostics. There are already a number of anti monoclonal - ant therapeutic monoclonal antibodies now available through AbD Serotec. Can you give us an idea of how much of the turnover of 8.8 was due to sales related to these sorts of programs? And what your sort of goal long term might be, as a proportion?

Yes, Gary, I think it's safe to assume that the contribution is not substantial at this stage. The newly launched product which is just getting going. We do hope and expect them to pick up and the beauty of these kinds of products, of course is that those royalty streams that flow to us are pure profit and so the intention and the belief here is that over time as they - as those products grow, they will also contribute to an increase in the underlying profit margin of the business and that's one of the reasons why we expect in the years to come that the profit margin for AbD can improve significantly beyond the current sort of midsingle digits net that we have at the moment into somewhere into the mid teens and if not into the 20% range. But its early days yet, these are brand new products, they're just getting going and the contribution is not substantial at this stage.

Okay, and if I might just quickly on MOR103, will you have the complete data analysis at that point when you release the report or will there be further analysis to conduct after that?

It will be a pretty complete package that we'll be able to announce in the second half of September. So, it will be more than simply headline data.

Okay.

So we're taking the opportunity to really go through the data in detail and get a comprehensive and we hope meaningful package,

Okay, thanks very much.

The next question comes from the line of Elmar Kraus from DZ Bank. Please go ahead.

Good afternoon, gentlemen, and thanks for taking my question. The first one with the EBITDA margin has just been answered so I'm left with just one more that's on the overall revenue line. Considering the fact that you had one milestone payment in the last quarter and still abbreviated commerce and only an overall revenue of 16.5, is it fair to assume that you now have reached your baseline revenue quantity of let's say around 15 million. Is that fair to say? Thank you.

Yes, and thanks for the question. Well just maybe to clarify the Q2 figure was 16.9.

Sorry.

Yeah, no worries. As you know, I mean there are - the milestone payments are coming in special deals on technologies and so on they're also coming in. So there is a fluctuation. As you know, what's safe in terms of the top line is always what we get from Novartis for FTE funding as well as for the license fee and on top of that, there will be always millions on - for this sort of deals which have been mentioned by Simon before and which I just mentioned.

So, I can't confirm what you're saying that it is a decision ballpark which like on 50 million its [safe]. There will be fluctuations in the future and certainly we are aiming that the numbers by quarter are higher than what you have just addressed as the number.

Thank you.

The next question comes from the line of Thomas Schiessle from EQUI. TS. Please, go ahead.

Thomas Schiessle from EQUI. TS and [franksearch]. Hello gentlemen. I would like to ask two questions, one on elanthia. Simon could you - could you confirm whether there might be at least one deal in the current business year? A technology deal?

And the other question is on the partners portfolio, the recent fluctuation of the number of partnered projects is approximately between 65, some more, some less. Is this the run rate we shall assume for the future? So, you are working at some 60 projects in the future as well? Thank you for (inaudible).

Thanks, Thomas. Nice to hear from you. Just in terms of the types of deals that we're going to be doing between now and year end, as we indicated. We're confident based on the technologies we have to enter deals, let me say plural, until year end. We anticipate that elanthia will be a component of the activities that we engage in before year end, but you should think in terms of kind of packages of technology as well. The [swanomix] for example is an integral part of what we have to offer today. We see it being used in conjunction with elanthia for example. So, we're really in the nice position of having a suite of technologies if you like that we can offer and its therefore difficult to think about how individual deals might look and we don't really want to get into detailed discussions of that at this stage, but all of the - all of the technologies that we've developed and that are available are a subject of those discussions that are currently ongoing.

In terms of the partnered portfolio, the way we think about this is that the number of new starts we're always aiming at somewhere in the ballpark of 10 or so per year. What is difficult to predict is the attrition rate, how many ongoing programs fall out and at what time they fall out. That's a little bit hard to predict, it can go in waves. But we hope that the net effect overall is that the total number of programs increases. Okay, but again, given the unpredictability of attrition, it's hard to predict at what rate that total will increase, but we do anticipate and expect and plan for a continuous increase in the number of - or a steady increase year on year in the number of programs that are actually started.

So the number of employees working on those projects will still be the same (inaudible).

To the extent that new deals come in, which require collaboration and support on our side then new employees may be necessary to do those. Just that currently the bulk of employees working on these partnered projects are assigned to Novartis, as you know, and that is essentially a steady state. So that number of FTEs is fixed and doesn't change and is based on the inflow of programs, targets that come to us from Novartis. But beyond that, new deals could mean new employees.

Okay, may I ask an additional question on AbD?

Please. Yes.

You emphasized that the research market is more of less down, so you switched to - luckily you switched to a more to diagnostics. How - what amount of investments in - you have to spend to be in a good position to run this business with diagnostic. Is there anything to spend in the near future or is this ongoing investments?

Yes, the investments aren't huge here. That's really the beauty of this business. Its - what we're doing is we're really taking advantage of preexisting expertise that we have around the HuCal technology and the HuCal - of course applying the HuCal technology itself, which turns out to have certain genuine advantages in the diagnostic setting, in addition to its already established and known advantages and therapeutics. And amongst these advantages is the ability to make anti [idiotypic] antibodies, which is the subject of all these products that we talked about during the presentation.

So to - actually we're - and AbD is kind of blessed with having this existing expertise and technology platform which is now simply being applied in a new area. So, it's a relatively easy step for us to take to move into this diagnostic space.

Okay, thanks for the information. Thank you.

We have a further question from the line of Daniel Wendell from Comet Bank. Please go ahead.

Thanks for taking my follow up for question and that is also related to the potential partnerships or technology deals you might find [and do] in the second half of 2012. Is it fair to assume that it's also an - well, how shall I say that, a possibility and that might also be a HuCal partnership in the area of infectious diseases? Or is that not something which you would regard as likely? Thank you.

Could be.

Okay.

That's - you've rightly spotted of course that we have freedom to - full freedom to operate with HuCal in the (inaudible) disease space and amongst the list of discussions, negotiations and things that are ongoing that is included.

Okay, so you have discussions in that area with potential partners.

Yeah.

Okay.

Yes, yes.

Okay, thanks.

Next question comes from the line of Sachin Soni of Kempen and Co. Please, go ahead.

Good afternoon everyone. I have three questions. First is regarding the current status of technology platform, you have upgraded the platform substantially after certain acquisitions, do you think there is still more room for improvements if yes, what direction would you go in improving the current technology platform.

Then second is, regarding out licensing strategy. Is it correct to assume that you're internal biases towards out licensing and asset after proof of concept or would you consider your proprietary assets to be out licensed earlier than that as well?

And third question, the potential deal on technology platform which we have been talking, am I understanding correctly to assume that this deal is a part of guidance already in revenues? Thank you.

Okay, thanks Sachin. Let me start with the technology platform. So, first of we cannot be improved further probably. We think that there are ways in which what we have can be expanded and proved, made more useful and if you think about it, it's really around the potential application for antibodies. The challenges at the moment are what types of targets can you hit. There are definitely classes of targets at the moment that are difficult to hit, which it would be great if you could go after and I think GPCRs, iron channels and so on, this is well known in the community. Could you get antibodies into sales for example and thereby access a whole new class of targets? Could you administer antibodies differently than intravenously or subcutaneously? So, it's a fantastic class of drugs, but there's definitely scope to improve on it further and these are some of the challenges - just some of the challenges that we are thinking about at the moment.

While we're on the subject of technologies, I'll come to your third question which is are the types of deals that we referred to included in the guidance for the remainder of the year, the answer is definitely a yeas to that one.

And then finally, coming back to your second question in terms of out licensing, the intention for MOR103 is certainly not to take that forward in an indication like rheumatoid arthritis on our own and we feel that given good proof of concept data that's an ideal time to find a good partner for that program. For the remaining programs, 208, 202 for example, the current plan is to go to proof of concept, because we feel that that's where we can establish the greatest value for those two programs and not to partner them earlier than that. That is the plan that we have for those two remaining programs.

Great, thank you.

We currently have no questions coming through so as a reminder, if you would like to ask a question please press star one on your telephone keypad now. We have a further question from Gary Waanders from Nomura Securities. Please go ahead.

Hi there, just to follow up on the platform discussion. Has there been any noticeable shift in the collaborative efforts with Novartis following the internalization of the HuCal platform? Is kind of the first part of that and what is their stance vis a vis elanthia and development, discovery programs. Thanks.

So, thanks Gary. Regarding the first part of that question, it was always part of the deal that they would internalize the HuCal platform and it was also always part of the deal that there been a constant, a steady state number of programs that would be pursued here. And that continues to be the case. So, the fact that they've internalized the HuCal platform doesn't really have any bearing on the collaboration as such because there's a constant amount of work going on.

Okay.

New targets come in as old targets are handed back or targets that have been worked up are handed back.

With regards to elanthia, our view is that elanthia is a more and will be a more powerful technology than HuCal. We believe therefore that it's the technology of choice for all therapeutic applications. We therefore absolutely want to have that as a part of our collaboration with Novartis and we're currently working closely with Novartis to figure out how that will precisely work and at what stage it should be brought into the collaboration, but that's absolutely the joint intention of the two parties that we together use the elastic platform to make the next generation of therapeutic antibodies.

Okay, thanks.

We have a further question from the line of Gunnar Romer from Deutsche Bank. Please go ahead.

Thanks for taking my follow up. This would be probably a question for Jens. I was wondering whether you could give us an idea of why the uptake in SG&A, what's behind that and then also with regard to partnered R&D, I noticed, was a little bit higher in Q2. Just was curious about whether there's a relationship also between partnered R&D and SG&A here?

First, thanks Gunnar for the question. First maybe coming to the second question which you have addressed in the partner business. In absolute terms you're right, the amount went up but please be reminded that there is also - there are also some technology development expenses in there and this is certainly influencing the figures and here, I think we also see fluctuations. So therefore, I think in terms of what we have seen in the first half of last year as spending and in the first half of this year as spending for the partner business. You run in the sort of range of 9 to 11 million for that segment which we run and I think something like this is pretty much stable for each half year. So, I mean if you think of your model, I think something like this (inaudible) is pretty much okay.

In terms of the SG&A expenses, I mean you have seen that we'll have in comparison to the first - so the second three months for the second quarter of last year that we have reduced our SG&A expenses and as such, I think we assumed that also in terms of the full year when we are not too far away of what we have seen for the first half year in terms of what we can expect of total expenses. I mean there is some specifics always, some consultancy expenses which cause some deviation, but in that sort of ballpark, I think assumptions are well placed.

Okay, that's helpful, but there's no significant let's say kind of upfront investments for upcoming technology deals that might go away in the second half.

Well, most likely those technology deals will be CapEx for us.

Right. Okay.

Yes, and as such, we would book them accordingly.

Okay, thank you.

(Operator instructions)

Thank you, we have no further questions coming through so I will now hand back over to Dr. Moroney to wrap up today's call.

Thank you and to conclude the call, I'd like to remind you of the main points we take away. First, the Company's greatest source of value is drug pipeline continues to develop well. We're on track to report clinical data from our two most advanced programs, MOR103 and MOR208 later this year as planned.

Second, our partner's pipeline continues to grow and to mature with the transition of gantenerumab to a potentially pivotal trial for Alzheimer's disease being the main highlight. And finally, we're happy to reconfirm that we're on track to hit our financial targets for the year.

That concludes the call. If any of you would like to follow-up, we are in the office for the remainder of the day. Thank you for your participation and good bye.

Ladies and gentlemen, the conference is now concluded and you may disconnect your telephone, thank you for joining and have a pleasant day. Good bye.