Neptune Insurance Holdings Inc (NP) 2022 Q1 法說會逐字稿

Good morning. My name is Chris, and I'll be the conference operator today. At this time, I'd like to welcome everyone to the Neenah Q1 2022 Earnings Call. (Operator Instructions) Thank you.

早安.我叫克里斯，今天將擔任會議主持人。現在，我歡迎大家參加妮娜2022年第一季財報電話會議。 （主持人指示）謝謝。

Kyle Anderson, Vice President and Corporate Strategy and Investor Relations, you may begin.

凱爾·安德森（Kyle Anderson），公司策略和投資者關係副總裁，你可以開始。

Good morning, and thank you for joining us on Neenah's Q1 2022 Earnings Call. With me today are Julie Schertell, Chief Executive Officer; and Paul DeSantis, Chief Financial Officer. Julie and Paul will discuss recent results as well as share thoughts on our full-year outlook, how we are executing our strategy, and our plan merger with SWM. We issued a press release covering Q1 financial results yesterday afternoon and posted supplemental materials to an investor website to assist in better understanding our quarterly results.

早安，感謝您參加 Neenah 的 2022 年第一季財報電話會議。今天與我一起出席的是執行長 Julie Schertell 和首席財務長 Paul DeSantis。 Julie 和 Paul 將討論近期業績，並分享對我們全年展望、策略執行情況以及與 SWM 合併計劃的看法。我們昨天下午發布了一份關於第一季財務業績的新聞稿，並在投資者網站上發布了補充資料，以幫助更好地理解我們的季度業績。

Following our prepared remarks, we will open the call for questions. As a reminder, our comments include forward-looking statements. Actual results could differ from these statements due to risk outlined both on our website and in our SEC Filings.

在我們準備好的發言稿之後，我們將開始提問環節。提醒一下，我們的評論包含前瞻性陳述。由於我們網站和美國證券交易委員會文件中概述的風險，實際結果可能與這些陳述不同。

As we get started a few opening highlights, in the first quarter, we continued our topline growth momentum and set yet another quarterly record with net sales up 25% over last year. Adjusted earnings were $0.63 per share, excluding $0.29 of unusual cost and adjusted EBITDA was $30.3 million. In Q1 2021, adjusted earnings were $1 for per share and excluded $0.55 of unusual cost with adjusted EBITDA of $35.7 million. Details of these adjusting islands, along with the reconciliation to gap amounts can be found in our earnings release.

首先介紹幾個開篇亮點：第一季，我們延續了營收成長勢頭，並再創季度紀錄，淨銷售額較去年同期成長25%。調整後每股收益為0.63美元（不包括0.29美元的非經常性成本），調整後息稅折舊攤提前利潤（EBITDA）為3,030萬美元。 2021年第一季，調整後每股盈餘為1美元（不包括0.55美元的非經常性成本），調整後息稅折舊攤提前利潤（EBITDA）為3,570萬美元。有關這些調整島嶼的詳細資訊以及與缺口金額的對賬，請參閱我們的業績報告。

With that, I'd like to turn the call over to Julie.

說完這些，我想把電話轉給茱莉。

Thanks, Kyle. And good morning, everyone. I'll start with an overview of our first-quarter performance. We were pleased with our results in the first quarter, compared to Q1 of 2021, total volume was up 17%, with fine paper and packaging up 7%, and technical products up 23%. We delivered sales of almost $285 million up 25% from last year. This was our third consecutive quarterly topline record, a clear indication that our growth strategy is gaining traction.

謝謝，凱爾。大家早安。首先，我來概述一下我們第一季的業績。我們對第一季的業績感到滿意。與2021年第一季相比，總銷量成長了17%，其中文化紙和包裝成長了7%，科技產品成長了23%。我們的銷售額接近2.85億美元，比去年成長了25%。這是我們連續第三個季度創下營收紀錄，這清楚地表明我們的成長策略正在獲得動力。

From a bottom-line perspective, despite a challenging year-on-year comparison against an exceptionally strong and pre-inflationary Q1 of 2021, I'm pleased with our progress on EBITDA margins as they improved sequentially from Q4 to Q1 from roughly 9% to around 11%. The primary driver of this improvement was continued success in our pricing initiatives. As we all know, the inflationary pressures over the last several quarters have been intense escalating at an accelerated pace and to record levels.

從獲利角度來看，儘管與通膨前異常強勁的2021年第一季相比，同比業績充滿挑戰，但我對我們EBITDA利潤率的進展感到滿意，EBITDA利潤率從第四季度環比第一季從約9%提升至約11%。這項改善的主要驅動力是我們定價舉措的持續成功。眾所周知，在過去幾個季度，通膨壓力持續加劇，並以加速的速度達到創紀錄的水平。

As discussed on prior calls, we've been aggressively executing on a different kind of pricing strategy to catch up to and offset these unprecedented inflationary costs. We are now beginning to over recover input cost inflation while input costs are still increasing, demonstrating our pricing actions are working to recover margin and run ahead of inflation in 2022. These benefits will continue throughout the remainder of the year.

正如先前電話會議所討論的，我們一直在積極執行不同的定價策略，以應對並抵消這些前所未有的通膨成本。目前，在投入成本仍在上漲的情況下，我們已開始超額收回投入成本通膨，這表明我們的定價策略正在發揮作用，有助於恢復利潤率，並在2022年跑贏通膨。這些優勢將在今年剩餘時間內持續下去。

Favorable sales volume and mix is also significant this quarter, signaling market demand remains very strong and we are unlocking portfolio opportunities with innovation, and alternative chemistry to offset some of the supply chain shortages. While we have supported our customers on supply, our internal operations were impacted by availability of raw materials and labor.

本季良好的銷售量和產品組合也意義重大，顯示市場需求依然強勁，我們正在透過創新和替代化學技術來釋放產品組合機會，以彌補部分供應鏈短缺。雖然我們為客戶提供了供應支持，但我們的內部營運受到了原材料和勞動力供應的影響。

At this time, we have successfully addressed operating labor shortages but remain in the training phase at many sites in North America. There is a learning curve that we expect to continue to improve upon throughout the year. We are reaffirming our full-year guidance for 2022 of $135 million to $145 million of adjusted EBITDA or a 16% to 25% increase versus prior year.

目前，我們已成功解決了營運勞動力短缺的問題，但在北美許多工廠仍處於培訓階段。我們預計全年將繼續改進，並有一個學習曲線。我們重申2022年全年業績預期，調整後EBITDA為1.35億美元至1.45億美元，較上年成長16%至25%。

As we progress throughout the year, we expect earnings to benefit from several factors. First, we expect our pricing efforts to continue to offset rising input costs. We have announced additional pricing actions that will be effective during the second quarter in response to continuing escalation of cost. Second, demands for our products remain very strong. In some cases, we have orders placed into the fourth quarter signaling continue to market strengths.

隨著全年業績的推進，我們預計獲利將受益於以下幾個因素。首先，我們預期定價策略將繼續抵銷不斷上漲的投入成本。為了應對成本的持續上漲，我們宣布將於第二季實施的額外定價措施。其次，我們產品的需求依然強勁。在某些情況下，我們的訂單已持續到第四季度，這表明市場持續強勁。

We are also demonstrating strong progress against our growth drivers including our most recent acquisition ITASA which continues to exceed our expectations and deliver record performance. Our released line of capacity expansion project is underway and we are pleased with how this will serve as a foundation for growth going forward.

我們在成長動力方面也取得了強勁進展，包括我們最近收購的ITASA，該公司繼續超越我們的預期，創造了創紀錄的業績。我們已發布的產能擴張項目正在進行中，我們很高興看到這將為未來的成長奠定基礎。

With great availability of input, increased stability of labor, and continued implementation of our operational excellence program, we expect to see manufacturing performance improve throughout the year. Lastly, we'll continue to drive innovation and launch new products that customers value that expand our addressable market and that create the opportunity for higher margins. As an example, in April, we launched a new medical packaging solution capable of withstanding all types of sterilization technologies including radiation. This is significant as single-use medical devices continue to gain popularity due to their ability to lower cost, increase efficiency, and reduce the spread of infection. Our new product allows customers to serve multiple market needs, is technology agnostic, and provides an alternative to polymer-based packaging.

憑藉充足的投入、更穩定的勞動力以及持續實施的卓越營運計劃，我們預計全年生產績效將持續提升。最後，我們將繼續推動創新，推出客戶認可的新產品，從而擴大我們的目標市場，並創造更高的利潤率。例如，今年4月，我們推出了全新的醫療包裝解決方案，能夠承受包括輻射在內的所有類型的滅菌技術。鑑於一次性醫療器材因其降低成本、提高效率和減少感染傳播的能力而持續受到歡迎，這項措施意義重大。我們的新產品能夠滿足客戶的多種市場需求，且不受技術限制，並提供了聚合物包裝的替代方案。

All of these efforts, strong pricing and volume, favorable mix, improving operating performance, and new products, lead to improved margins throughout the year. So while it continues to be a challenging environment, I'm very pleased with the actions and results our teams have demonstrated. We're directly addressing the challenges, delivering results, and positioning the business for further growth and margin expansion. We're confident in our earnings guidance and our trajectory is on pace. Our strategy is clear and we are demonstrating progress towards both year and long-term goals.

所有這些努力，包括強勁的定價和銷售、良好的產品組合、不斷提升的營運業績以及新產品，都推動了全年利潤率的提升。因此，儘管環境依然充滿挑戰，但我對我們團隊所採取的行動和所取得的成果感到非常滿意。我們正在積極應對挑戰，取得成果，並為進一步成長和利潤率提升做好業務準備。我們對獲利預期充滿信心，我們的發展方向也步入正軌。我們的策略清晰，並且正在朝著年度目標和長期目標邁進。

With that, I'll turn it over to Paul to cover financial results, and then I'll wrap up with some comments on our long-range strategy in the planned merger with SWM.

接下來，我將把時間交給保羅來介紹財務業績，然後我將對我們與 SWM 合併計劃的長期策略發表一些評論。

Thanks, Julie. As I begin I would like to highlight a few enhancements to our quarterly results communications. We've streamlined earnings release to help focus on the relevant items for the quarter included a new bridge graphic to show the key drivers of adjusted EBITDA and posted a supplement to our investor website. Consolidated sales reached $285 million up $58 million from last year's comparable quarter. ITASA accounted for $39 million of the increase. Volume, including ITASA, was up 17% while prices were up another 13% partially offset by currency and mix of about 5%.

謝謝，朱莉。首先，我想強調一下我們在季度業績溝通方面的一些改進。我們簡化了收益發布流程，以便於關注本季的相關項目，其中包括一張新的圖表，用於展示調整後EBITDA的關鍵驅動因素，並在投資者網站上發布了補充資訊。合併銷售額達2.85億美元，較去年同期成長5,800萬美元。 ITASA貢獻了3,900萬美元的成長。包括ITASA在內的銷售量成長了17%，價格上漲了13%，但部分抵銷了約5%的貨幣和產品組合影響。

Both segments demonstrated continued volume growth which, excluding ITASA, was up 3%. Adjusted EBITDA was $30 million compared to $25 million in last year's fourth quarter and $36 million in last year's first quarter. Q1 year-over-year pricing actions were favorable by $30 million which were ahead of [input] cost increases of $29 million. We're expecting that differential to keep increasing over the remainder of the year.

兩個部門的銷售量均持續成長，不包括ITASA，增幅為3%。調整後EBITDA為3000萬美元，去年第四季為2500萬美元，去年第一季為3600萬美元。第一季的定價措施年比優惠3000萬美元，高於2900萬美元的[投入]成本增幅。我們預計，這一差異將在今年剩餘時間內繼續擴大。

It's also interesting to note pricing for all of '21 was $19 million, highlighting the momentum we're seeing with our pricing action. Adjusted EBITDA margins increased by 130 basis points on a sequential basis. This is the second quarter in a row of sequential margin improvement driven by the increased momentum in our pricing actions. The primary driver of the shortfall in profitability from last year's exceptionally strong first quarter was an unsavable $15 million, year-over-year variance in operating profits, including higher distribution expense.

值得注意的是，21年全年的定價為1,900萬美元，凸顯了我們在定價行動中看到的強勁勢頭。調整後的EBITDA利潤率較上季成長了130個基點。這是利潤率連續第二季環比成長，這得益於我們定價行動的強勁勢頭。獲利能力與去年異常強勁的第一季相比有所下降，主要原因是營業利潤比去年同期出現了1500萬美元的不可挽回的差異，其中包括更高的分銷費用。

The input availability issues we've experienced over the last few quarters combined with labor availability challenges drove the inefficiencies which results in slower throughput, higher wage, more downtime, and higher conversion costs.

我們在過去幾季遇到的投入可用性問題，加上勞動力可用性挑戰，導致了效率低下，從而導致吞吐量下降、工資增加、停機時間增加和轉換成本增加。

A few additional things to note, the unfavorability includes costs associated with the January fire in our Grandville, New York facility which had about a $2 million impact in the quarter. This compares favorably with the $3 million we had originally estimated, thanks to the efforts of the team to work with customers, modify existing inventory, and start up the assets earlier than expected.

另外要注意的是，不利因素包括我們紐約州格蘭維爾工廠1月發生火災的相關成本，該火災對本季造成了約200萬美元的影響。相較於我們最初估計的300萬美元，這一數字有所改善，這要歸功於團隊與客戶合作、調整現有庫存以及提前啟動資產的努力。

Distribution costs were $3 million unfavorable year-over-year for fighting the challenges in the freight and logistics marketplace. We drove the improvement throughout the first quarter in manufacturing cost and expect the unfavorable variances of '21 to improve and ultimately turn favorable by the end of the year as the actions we've taken at our facility are showing traction.

為了因應貨運和物流市場的挑戰，配送成本較去年同期下降300萬美元。我們推動了整個第一季製造成本的改善，並預計21年的不利差異將有所改善，並最終在年底前轉為有利，因為我們在工廠採取的措施正在顯現成效。

There are a couple of important points to be made here in terms of Q1 performance versus '21 in operating costs. Q1 of '21's operating performance was the best quarter in the last few years. Although the $50 million unfavorable to Q1 of '21, and a sequential basis from Q4 were showing improvement, and, as I said, expected improvement versus price are to continue throughout 2022. Another important point to be made is there were [about on] plans with variances. The plans, primarily from the Brownville fire and distribution cost. Lastly, we're beginning to see very slight but noticeable improvement in raw material availability and expect that to continue throughout the year.

關於第一季與2021年營運成本表現的對比，這裡有幾點要注意。 2021年第一季的營運表現是過去幾年最好的季度。儘管與2021年第一季相比虧損了5000萬美元，但與第四季度相比，環比增長有所改善，而且正如我所說，預計2022年全年價格上漲的勢頭將持續下去。另一個需要注意的要點是，大約有[一項]計劃存在差異。這些計劃主要來自布朗維爾火災和配送成本。最後，我們開始看到原料供應略有改善，但效果顯著，預計這種情況將持續全年。

Turning to segment results. Technical Products sales for $186 million up 28% from 2021 and up 6% excluding the (inaudible) and the facility closure last year. Pricing accounted for growth of 13% and volume was favorable. But mix and foreign exchange were both unfavorable. Adjusted EBITDA was $20.2 million down from a very strong $24.9 million last year, reflecting the impact of raw material availability and the related operating inefficiencies. Technical products is bearing the brunt of the specialty chemical availability challenges and the related operating inefficiencies.

談到分部業績。科技產品部門銷售額為 1.86 億美元，較 2021 年成長 28%，若不計入（聽不清楚）和去年工廠關閉的影響，則成長 6%。定價貢獻了 13% 的成長，銷量也表現良好。但產品組合和外匯均不利。調整後 EBITDA 為 2,020 萬美元，低於去年非常強勁的 2,490 萬美元，這反映了原材料供應和相關營運效率低下的影響。技術產品部門首當其沖地受到特種化學品供應挑戰和相關營運效率低下的影響。

Pricing momentum is very strong, which is expected to drive expanding net price over input cost favorability for the rest of the year. Fine paper and packaging sales were almost $100 million, up 21% from last year's level with pricing up 14% and volume up 7%. Adjusted EBITDA was $14.5 million for the quarter, down slightly from last year's $15.3 million, reflecting the impact of the availability issues and the Brownville fire.

定價勢頭強勁，預計將推動淨價優於投入成本的優勢在今年剩餘時間內持續擴大。文化紙及包裝銷售額接近1億美元，較去年同期成長21%，定價上漲14%，銷售成長7%。本季調整後EBITDA為1450萬美元，略低於去年的1530萬美元，反映了供應問題和布朗維爾火災的影響。

We continued to perform above our original expectations driven by the strength of the commercial print, packaging, and consumer products businesses. In both segments, we believe we're on track to offset the '21 unrecovered input costs, as well as offset expected 2022 inflationary pressures over the next few quarters. We ended the quarter with liquidity of $160 million and leverage of 3.9 times. Cash flow from operations with the use of $2 million driven by working capital increases, reflecting the higher input pricing and selling costs and higher cash tax payments. CapEx was $8.3 million versus $4.8 million last year, primarily driven by spending for our growth initiatives.

在商業印刷、包裝和消費品業務的強勁推動下，我們的業績持續超越最初的預期。我們相信，在這兩個部門，我們預計將抵銷2021年未收回的投入成本，並在未來幾季抵銷2022年預期的通膨壓力。本季末，我們的流動資金為1.6億美元，槓桿率為3.9倍。經營活動現金流為200萬美元，這得益於營運資本的增加，反映了更高的投入定價和銷售成本以及更高的現金稅費。資本支出為830萬美元，而去年為480萬美元，主要由我們用於成長計畫的支出所推動。

As we work our way through the year, we expect to increase cash from operations and reduce leverage to around 3 times. From a CapEx perspective, for 2022, we expect to be at 4 to 5% of net sales as we invest for growth. SGNA is up $6 million over the first quarter of 2021, most of that increase is the impact of the (inaudible) business. A secondary driver of increased incentive compensation accruals, reflecting the strong start to the year.

隨著我們全年的推進，我們預計營運現金流將增加，槓桿率將降至3倍左右。從資本支出的角度來看，由於我們將加大成長投資，預計2022年的資本支出將達到淨銷售額的4%至5%。 SGNA較2021年第一季成長了600萬美元，其中大部分成長來自（聽不清楚）業務的影響。激勵性薪酬應計專案增加的另一個驅動因素，反映了今年開局的強勁表現。

For 2022, we anticipate that our full year normalized tax rates will be in the low to mid-20 as a percentage of pre-tax income. Our effective tax rate was 21% of pre-tax earnings in the first quarter of both 2022 and 2021. Our effective rate is lower than the statutory rate, primarily as a result of benefits from US R&D tax credits. Looking ahead, we were very pleased to see pricing offset input costs in the quarter. Additionally, we've seen progress in operations from Q4 '21 to this quarter, and sequentially, each month throughout the first quarter, as our supply chain teams' initiatives are addressing the inefficiencies resulting from the availability issues. As a result, as Julie said, we are reaffirming our 4-year guidance.

我們預計，2022年全年標準化稅率佔稅前收入的比例將在20%左右。 2022年及2021年第一季，我們的有效稅率均為稅前所得的21%。我們的有效稅率低於法定稅率，主要得益於美國研發稅收抵免政策的優惠。展望未來，我們非常高興地看到本季的定價抵銷了投入成本。此外，從2021年第四季到本季度，我們的營運都取得了進展，並且在第一季的每個月都取得了進展，因為我們的供應鏈團隊正在採取措施解決可用性問題導致的效率低下問題。因此，正如朱莉所說，我們重申了四年的預期。

Here are a couple of additional considerations for upcoming quarters. Topline remains robust and demand is strong. We're not yet seeing input costs moderate, particularly with pulp and energy. We've implemented immediate surcharges where necessary to offset those increases. We're also accelerating pricing actions to minimize the timing lag between input cost increases and our pricing. As a result, our pricing mechanisms are working faster than ever before.

以下是未來幾季的一些額外考慮。營收依然強勁，需求強勁。我們尚未看到投入成本有所緩和，尤其是紙漿和能源成本。我們已在必要時立即實施附加費，以抵消這些上漲。我們也正在加快定價行動，以最大程度地縮短投入成本上漲與定價之間的時間差。因此，我們的定價機制比以往任何時候都更有效率。

In terms of specialty chemicals, costs continue to increase but at a rate slower than last year. Additionally, many downstream chemicals are still very tight, although we're seeing some progress in availability. We have minimal direct exposure from the Russia/Ukraine conflict with no assets for employees located in those countries, and virtually no revenue. We're continuing to address indirect impacts from the conflict, including European energy and logistic disruptions.

特種化學品方面，成本持續上漲，但成長率低於去年。此外，許多下游化學品仍然非常緊張，儘管我們的供應有所改善。我們受俄羅斯/烏克蘭衝突的直接影響很小，在這兩個國家沒有員工資產，也幾乎沒有收入。我們正在繼續應對衝突帶來的間接影響，包括歐洲能源和物流中斷。

Trading for margin, we expect to maintain our recent improvements near term with gradual continued improvement beginning in the back half of the year as we address our operating challenges and execute our pricing actions. Of note, Q2 '22 will look more like Q1 of '22. While the year-on-year comparisons in the back half of the year are expected to be more favorable versus prior year.

就保證金交易而言，我們預計近期業績將保持近期改善勢頭，並在下半年逐步持續改善，因為我們將應對營運挑戰並實施定價措施。值得注意的是，2022年第二季的表現將更接近2022年第一季。同時，預計下半年的年比數據將比去年同期更加有利。

As a headwind to our margin and growth initiatives, the Euro is having an unfavorable impact on our US Dollar results. For each penny of appreciation of the US Dollar to Euro exchange rate, we are impacted by approximately $650,000 of earnings on an annual basis. Our teams, including operations, R&D, purchasing, and sales planning, have responded very constructively to address the availability issues. As a result, we're seeing improvements in operations, which we expect to continue throughout 2022.

歐元的貶值對我們的利潤和成長計畫造成了不利影響，對我們的美元表現造成了不利影響。美元兌歐元匯率每升值一美分，每年就會對我們約65萬美元的收益造成影響。我們的團隊，包括營運、研發、採購和銷售規劃，都積極回應，以解決可用性問題。因此，我們的營運狀況正在改善，預計這種改善將持續到2022年。

And on that note, I'll turn it back to Julie.

關於這一點，我將把話題轉回給朱莉。

Thanks, Paul. I'm very pleased with how the Neenah team is focused on delivering results and executing as we said we would. During these volatile times, we've been able to aggressively grow our topline with improved pricing, volume, and mix. Implement new and flexible pricing strategies that are showing early signs of success in offsetting record-level input costs. Diversify our portfolio with continued strong growth in air and industrial filtration, release liners, and premium packaging, and strengthen our position with customers by leveraging a global supply chain that addresses their local needs. Reformulating product chemistries to meet customer demand and launching new products that expand their addressable markets and provide sustainable alternative solutions.

謝謝，保羅。我很滿意Neenah團隊專注於交付成果並履行承諾。在當前動盪時期，我們透過優化定價、銷售和產品組合，大幅提升了營收。我們實施了新的靈活定價策略，這些策略已初顯成效，有效抵消了創紀錄的投入成本。我們將繼續在空氣和工業過濾、離型膜和高端包裝領域保持強勁成長，以豐富我們的產品組合，並透過利用滿足客戶本地需求的全球供應鏈，鞏固我們在客戶中的地位。我們不斷改進產品配方以滿足客戶需求，並推出新產品以拓展其潛在市場並提供可持續的替代解決方案。

As a result, we are seeing early traction on margin expansion and we are reaffirming our full-year guidance, which is supportive of our longer-term goals. 5% top-line growth, 10% bottom-line growth, and greater than 15% EBITDA margins.

因此，我們看到利潤率擴張的早期跡象，我們重申全年指引，這有利於我們的長期目標：5% 的營收成長、10% 的利潤成長以及超過 15% 的 EBITDA 利潤率。

Now shifting to the announced merger with SWM. This is a transformative inflection point for both Neenah and SWM. And we are extremely excited about the possibilities and the potential of the combined company. Together, we will form a leading global specialty materials company with an improved growth profile, compelling synergy, and meaningful scale. We view the merger as an and not an or, meaning we will deliver the benefits of executing our combined business plan and we will see incremental growth and value from the planned merger.

現在談談已宣布的與SWM的合併。這對Neenah和SWM來說都是一個轉型的轉捩點。我們對合併後公司的可能性和潛力感到非常興奮。我們將攜手打造一家全球領先的特種材料公司，擁有更強勁的成長動能、更顯著的綜效和更顯著的規模經濟。我們認為此次合併是“與”而非“或”，這意味著我們將實現執行合併業務計劃的效益，並從計劃中的合併中看到增量增長和價值。

We think about the benefits of this merger in 3 key areas, strategy, synergies, and scale. First, we believe the merger accelerates our long-term strategy, will enhance the growth dynamics of our business, and drive attractive margins and cash generation. The combined companies should be well-positioned in diversified and high growth categories, such as filtration, protective films, release liners, healthcare, and sustainable packaging with strong market positions and strong macro trends.

我們認為此次合併的益處主要體現在三個關鍵領域：策略、綜效和規模經濟。首先，我們相信此次合併將加速我們長期策略的實施，增強業務的成長動力，並帶來可觀的利潤率和現金流。合併後的公司將在多元化和高成長領域佔據有利地位，例如過濾、保護膜、離型膜、醫療保健和永續包裝，擁有強大的市場地位和強勁的宏觀趨勢。

What makes this combination even more powerful is that the 2 companies complement each other, but don't overlap. By bringing together the strength of our complementary product offerings, technologies, and geographies, the combined company will be poised to deliver powerful benefits, including a comprehensive suite of product solutions, an expanded toolbox to deliver innovative answers for our customers' challenges, and a stronger global presence to best serve our customers where they compete. Early feedback from customers is overwhelmingly positive, and we look forward to delivering on a combined promise.

這次合併的更強大之處在於，兩家公司彼此互補，但業務並不重疊。透過整合我們互補的產品線、技術和地理優勢，合併後的公司將具備強大的優勢，包括提供全面的產品解決方案、更豐富的工具箱以應對客戶的挑戰，以及更強大的全球影響力，從而在客戶競爭的領域提供最佳服務。客戶的早期回饋非常積極，我們期待兌現合併後的承諾。

The second element is synergy. The combination presents a compelling and unique opportunity to optimize our organization, enhance margins, and drive meaningful value. We are expecting at least $65 million of incremental EBITDA from initial cost synergies with the potential for more. At any reasonable multiple, this would create hundreds of millions of dollars of shareholder value for the combined company. These synergies are expected to be unlocked quickly, with a run rate at approximately 50% within the first 12 months, and achieving the full run rate within 24 to 36 months after close. During the diligence process, we engaged a third party to validate the synergy potential, and we are confident in our ability to deliver this value.

第二個要素是協同效應。此次合併為我們優化組織架構、提升利潤率和創造有意義的價值提供了一個極具吸引力的獨特機會。我們預期初始成本綜效將帶來至少6,500萬美元的增量EBITDA，並且還有進一步成長的潛力。以任何合理的倍數計算，這將為合併後的公司創造數億美元的股東價值。這些協同效應預計將迅速釋放，在合併後的前12個月內運行率將達到約50%，並在交易完成後的24至36個月內達到最高運行率。在盡職調查過程中，我們聘請了第三方來驗證協同效應的潛力，我們有信心實現這一價值。

Let me provide a bit more detail on the sources of the cost synergies. About half of the synergies will come from reduced SGMA. Bringing 2 public companies together creates a meaningful opportunity, with the largest single source of savings generated by eliminating redundant public company costs. Duplicate costs such as the C-suite, board of directors, outside agencies, and other purchase services are readily known and quickly achievable. Optimizing procurement will also drive a significant source of savings. We buy many similar items, creating an opportunity to concentrate purchases.

讓我更詳細地介紹一下成本綜效的來源。大約一半的協同效應將來自於降低SGMA。兩家上市公司的合併創造了一個意義重大的機會，最大的單一成本節約來源是透過消除上市公司的冗餘成本來實現的。諸如高階主管、董事會、外部機構和其他採購服務等重複成本很容易被識別，而且很容易實現。優化採購也將帶來顯著的節約。我們購買許多類似的商品，這創造了一個集中採購的機會。

Lastly, we expect savings in our operations, such as vertical integration opportunities, freight and warehousing optimization, and other cost efficiencies. As an upside to the cost synergies, we also expect to capitalize on the industrial logic of the combination to accelerate growth and drive incremental revenue. From cross-selling to geographic expansion to the innovation potential, the sales synergies should be sizable over time.

最後，我們預計營運成本將有所節省，例如垂直整合機會、貨運和倉儲優化以及其他成本效率提升。除了成本綜效之外，我們還希望利用合併後的產業邏輯來加速成長並推動增量收入。從交叉銷售到地理擴張再到創新潛力，銷售綜效將隨著時間的推移而顯著顯現。

Lastly, the merger will enhance the scale of the combined company. From a commercial standpoint, having a greater presence with customers and suppliers creates opportunities and places us among the leaders in specialty materials. Additionally, the increased skies provide strategic optionality for portfolio management, unlocking the opportunity to reshape the business. Scale also helps to make capital market perspective. As a larger company, the merger presents the opportunity to increase liquidity and trading volume, broaden index participation, lower our cost of capital, and increase shareholder visibility, all of which should lead to value creation for our shareholders.

最後，此次合併將擴大合併後公司的規模。從商業角度來看，擴大與客戶和供應商的聯繫將創造機遇，並使我們躋身特種材料領域的領導者之列。此外，擴大的天空為投資組合管理提供了策略選擇，從而釋放了重塑業務的機會。規模也有助於提升資本市場的視野。作為一家規模更大的公司，此次合併將有機會提升流動性和交易量，擴大指數參與度，降低資本成本，並提高股東的可見度，所有這些都將為我們的股東創造價值。

From a financial point of view, the new company is projected to have around $3 billion of revenue and EBITDA of $450 million on a proforma synergized basis. Each company on its own has a history of strong cash generation. Post-merger, we plan to drive cash to support de-levering the business. On a proforma basis, the combined company would approach 4x leverage by the end of the year, based on our current earnings guidance.

從財務角度來看，新公司預計在綜效基礎上實現約30億美元的收入和4.5億美元的息稅折舊攤提前利潤（EBITDA）。兩家公司各自都擁有強勁的現金流生成能力。合併後，我們計劃注入現金以支持業務去槓桿化。根據我們目前的獲利預期，合併後公司的槓桿率到年底將接近4倍。

Another priority use of cash is an ongoing commitment to a strong dividend. We've recognized this is important to our investors, and we will communicate our new company dividend policy in the weeks following the closing of the transaction. The key to unlocking value in any transaction is integration and efforts are well underway to plan for a successful launch. We have formed a team of top talent comprised of both Neenah and SWM employees, as well as outside consultants who will help enhance and accelerate our efforts.

現金的另一個優先用途是持續致力於提供強勁的股息。我們認識到這對投資者至關重要，並將在交易完成後的幾週內公佈新的公司股息政策。任何交易中釋放價值的關鍵在於整合，我們目前正在積極籌劃，以確保成功啟動。我們已經組建了一支由 Neenah 和 SWM 員工以及外部顧問組成的頂尖人才團隊，他們將幫助我們提升和加速工作。

We are developing team charters and action plans to ensure a smooth integration, quick synergy realization, and a seamless day one for our customers, suppliers, and employees. We've created a transformation office, which will report directly to me and be accountable for driving synergy, ensuring a successful integration of the 2 organizations. Thus far, things are off to a great start and the teams are working exceptionally well together, a testament, not only to the talent in both organizations but the complementary nature of our cultures.

我們正在製定團隊章程和行動計劃，以確保順利整合、快速實現協同效應，並為我們的客戶、供應商和員工提供無縫銜接的第一天體驗。我們已成立轉型辦公室，該辦公室將直接向我報告，負責推動綜效，確保兩家公司成功整合。到目前為止，一切進展順利，團隊合作非常順暢，這不僅證明了雙方的人才實力，也體現了我們文化的互補性。

These are exciting times, we are better and stronger together. And as we embark on the next stage of each company's journey, the potential is tremendous. Over the next few weeks, in advance of a shareholder meeting by each company, investors will have the chance to review the S4 registration statement. That gives additional information and details to further articulate why we believe this is a compelling transaction. We remain on track with the closing in the second half of 2022, as previously announced.

這是一個令人興奮的時刻，我們攜手並進，共同進步，更強大。隨著我們各自公司邁入新階段，潛力無限。在接下來的幾週內，在各公司召開股東大會之前，投資者將有機會審查S4註冊聲明。這將提供更多資訊和細節，進一步闡明我們為何認為這是一筆引人注目的交易。我們仍按計劃推進，預計在2022年下半年完成交割，正如先前宣布的那樣。

To conclude, we remain laser-focused on executing our business strategy, managing through a challenging supply chain environment, servicing our customers, and taking the necessary actions to drive growth and margins. As we enter a new era, we are well-positioned to deliver value both near and long term. And we thank you for your continued support of our business. This is a pivotal time for Neenah. I could not be more proud to be a part of these efforts as we create a stronger future for our customers, our employees, and our shareholders.

總而言之，我們將繼續專注於執行業務策略，應對充滿挑戰的供應鏈環境，為客戶提供服務，並採取必要措施來推動成長和利潤成長。隨著我們邁入新時代，我們已做好準備，在短期和長期創造價值。感謝您一直以來對我們業務的支持。這對Neenah來說至關重要。我很榮幸能夠參與其中，為我們的客戶、員工和股東創造更美好的未來。

With that, we'll turn the call over to questions.

接下來，我們將開始提問。

(Operator Instructions) Our first question today is from Jonathan Tanwanteng with CJS Securities.

（操作員指示）我們今天的第一個問題來自 CJS Securities 的 Jonathan Tanwanteng。

My first question is just regarding pricing and logistics. I think I heard that you see the moderation of stability going forward. Could you clarify exactly what you're seeing and if there's any place that we are seeing increasing headwinds, I guess, to the supply chain?

我的第一個問題是關於定價和物流的。我好像聽說您認為未來會趨於穩定。能否具體解釋一下您所看到的情況？我們是否在供應鏈的哪些方面看到了越來越大的阻力？

I think, Jon, what we said was we were actually not seeing those things slow down. So in the prepared remarks, we talked about, we're seeing the rate of increase in chemicals less than it was before, and we're saying that we really haven't seen pulp and energy slow down like we would have wanted to. I think the comment we were making is that we're really pleased at how quickly we were able to get pricing out there to offset that and start to see that pricing cost turn. So we sped up our pricing mechanisms with the intention of offsetting changes and increases faster.

喬恩，我想，我們之前說過，我們實際上並沒有看到這些事情放緩。所以在準備好的發言中，我們談到，我們看到化學品的成長率低於以前，我們說，我們確實沒有看到紙漿和能源的成長像我們希望的那樣放緩。我想，我們剛才說的是，我們非常高興能夠如此迅速地推出定價機制來抵銷這些影響，並開始看到定價成本的下降。因此，我們加快了定價機制的步伐，旨在更快地抵消變化和成長。

Okay, got it. I appreciate that clarification. My second question is where's the utilization today and how much more could you sell if you have more throughput available? I know you're either manufacturing efficiencies that are going on right now. How much more is likely to be freed up as you get through the year, and kind of what would be the demand on that and beyond that, if any?

好的，明白了。感謝您的澄清。我的第二個問題是，目前的產能利用率如何？如果產能增加，您能多賣出多少？我知道您目前正在提高生產效率。今年全年可能釋放多少產能？如果有的話，這方面的需求會是什麼？

Sure. You know, it varies by business, as you would imagine. If I think through our businesses, starting with filtration, we've unlocked capacity on our meltblown lines for incremental revenue driven by our operational excellence program, the Neenah operating system. So we're seeing continued upside there. That's our fastest-growing highest margin business. So we have opportunity to continue to grow in meltblown and we've invested in a new meltblown line, which will be the fourth line in our German facility that will be up in early 2024. So we're planning ahead and running ahead of any capacity challenges there.

當然。正如你所想像的，每個業務都有所不同。如果我縱觀我們的業務，從過濾開始，我們已經釋放了熔噴生產線的產能，這得益於我們卓越營運計劃——Neenah操作系統——的推動，從而帶來了增量收入。因此，我們看到該業務持續成長。這是我們成長最快、利潤最高的業務。因此，我們有機會在熔噴業務上繼續成長，我們已經投資了一條新的熔噴生產線，這將是我們德國工廠的第四條生產線，將於2024年初投入使用。因此，我們正在提前規劃，以應對任何產能挑戰。

The second area I would touch on is release liners because that's a business that's growing at-- it's historically grown about 8% a year, and we expect to continue to grow at that level. We've got coaters continuing to ramp up in Mexico, and again another investment that we've made that will start-up in Q3 of 2023 to support that high single-digit growth in release liners. So we have upside there. Those are 2 key growth platforms for us.

我要談的第二個領域是離型膜業務，因為該業務的成長速度——歷史上每年的成長率約為8%，我們預計還會繼續維持這一水準。我們在墨西哥的塗佈機產能正在持續增加，而且我們又進行了一項投資，將於2023年第三季投產，以支持離型膜業務的高個位數成長。因此，我們在這方面有成長空間。這是我們兩個關鍵的成長平台。

If I go to our industrial business, it's really about driving margin and industrials more than volume. So while we are somewhat sold out, I'd say in that business, we have the opportunity to continue to drive improved mix and margins, and that's the key focus in industrial. And then in fine paper and packaging, we're pretty tight on capacity. That business rebounded to a greater degree than we expected post-COVID, and the acceleration of that team, from a packaging and consumer product standpoint, has continued to perform really well. So the opportunity there is, again, to continue to offset any pressures on the commercial print side with accelerated growth in packaging and consumer products, which the team has done a nice job of.

說到工業業務，我更重視的是利潤率和工業產品，而非銷售量。因此，儘管我們在該業務上產品已基本售罄，但我認為我們仍有機會繼續改善產品組合和利潤率，而這正是工業業務的重點。此外，在高級紙張和包裝方面，我們的產能相當緊張。疫情過後，該業務的反彈幅度超出了我們的預期，而且從包裝和消費品的角度來看，該團隊的加速發展也持續表現出色。因此，我們有機會透過包裝和消費品業務的加速成長來繼續抵消商業印刷業務的壓力，而我們的團隊在這方面做得非常出色。

Okay, great. That's a lot of good detail. I was wondering if you could just give us a little bit more color. You mentioned on portfolio rationalization and optimization in your prepared remarks. Post the merger, have you thought about addressing some concerns that we've heard from investors about ESG and being able to meet those internal mandates to some of these contacts?

好的，太好了。說得非常詳細。我想知道您能否再多介紹一下。您在準備好的發言中提到了投資組合的合理化和優化。合併後，您是否考慮解決投資者對ESG的一些擔憂，以及如何滿足某些聯絡人的內部要求？

Sure. You know, I would start with, as we talk about the merger, I'd be remiss if I didn't give a big thank you to Jeff Kramer, the CEO at SWM, and his entire leadership team for their support and collaboration through this early process that we've had the opportunity to spend time together and discuss many of these questions. I will tell you, our focus is on driving our growth platforms and accelerating our strategic performance in those areas. We're going to continue to always look for ways to drive value, which includes looking at the opportunity to optimize the portfolio to a higher degree towards growth and margins, and what fits and what doesn't fit in that future.

當然。首先，既然我們談到合併，我首先要感謝SWM執行長傑夫·克萊默和他的整個領導團隊，感謝他們在早期階段給予的支持和合作，讓我們有機會一起討論這些問題。我想說的是，我們的重點是推動成長平台，並加速在這些領域的策略績效。我們將繼續尋找創造價值的方法，包括尋找機會，以更高的程度優化投資組合，從而實現成長和利潤，並確定哪些方案適合未來，哪些方案不適合。

The benefits of scale in this opportunity really gives us more options to make those decisions and changes that we wouldn't have as a standalone company, or would be much more challenging as a standalone company. So as we come together, we'll be focused on portfolio optimization and how we drive to fewer larger growing business units in the combined company.

這次機會帶來的規模效益確實讓我們擁有更多選擇，可以做出一些決策和改變，而這些決策和改變在獨立公司時我們無法做出，或者說，在獨立公司時會更具挑戰性。因此，合併後，我們將專注於優化業務組合，以及如何在合併後的公司中，專注於精簡規模更大、成長更快的業務部門。

Okay, great. And then the last one for me, just at a high level-- I mean, you can see this in the news. It's definitely growing. You're hearing it from a number of pundits and analysts that are out there. I was wondering what your thoughts are on the business in the end market, if rates start to, you know, adversely affect them, and kind of what's your positioning and thoughts are around that. Have you heard (inaudible) round and beyond?

好的，太好了。最後一個問題，就宏觀層面而言——我的意思是，你可以在新聞中看到這一點。它肯定在增長。你從很多專家和分析師那裡聽到了。我想知道，如果利率開始對終端市場的業務產生不利影響，你對終端市場的業務有何看法？你的定位和想法是什麼？你聽過（聽不清楚）相關消息嗎？

Yes, we continue to see really strong demand, and I think it's really important that we're looking at volume and not just revenue because of all the pricing activity. So we really focused on understanding our volume trends and leading indicators. Volume was up 3% in the quarter and that's covering a really strong Q1 of 2021. It was up 7% in fine paper and packaging, and that was really driven by packaging and consumer products. Tech products was up overall, but it was net as I mentioned, really driven by volume growth and filtration, and digital transfer, and release liners, and focus on margin and industrial solutions. So where we want more volume, we're definitely seeing that. We are not seeing leading indicators at this point of volume slowdown but we continue to monitor very closely.

是的，我們持續看到非常強勁的需求。我認為，由於各種定價活動，我們關注銷售而非僅僅關注收入非常重要。因此，我們非常注重了解銷售趨勢和領先指標。本季銷量成長了3%，涵蓋了2021年第一季非常強勁的表現。文化紙和包裝產品銷售量成長了7%，這主要得益於包裝和消費品。科技產品銷售量整體呈現成長趨勢，但正如我所提到的，是淨成長，主要得益於銷售成長、過濾、數位轉印和離型紙的成長，以及對利潤和工業解決方案的關注。因此，我們確實看到了銷量成長的跡象。目前，我們還沒有看到銷量放緩的領先指標，但我們會繼續密切關注。

Our next question is from Chris McGinnis with Sidoti & Company.

我們的下一個問題來自 Sidoti & Company 的 Chris McGinnis。

I apologize if any have been asked already. I jumped on a little late, but so you were just talking about the strength on the packaging side, are you at a point where kind of given the new introductions that you would be investing in that business in terms of expanding kind of capacity there?

如果已經有人問過了，我很抱歉。我回答得有點晚了，您剛才談到包裝方面的優勢，考慮到新產品的推出，您是否會投資該業務來擴大產能？

Yes. Well, we invest in different ways in the business. And so we have definitely driven bias towards R&D investments in fine paper and packaging. And I think that's where we're seeing a nice pipeline of opportunities. They've launched a number of new products that continue to gain traction, they have a very healthy pipeline for future opportunities. And it's really a nice part of our business because it is so cost-effective and efficient because it operates on the same asset as our consumer products business, and as our commercial [set] business.

是的。我們以不同的方式投資這項業務。因此，我們確實偏向於在高階紙張和包裝領域進行研發投資。我認為，這正是我們看到的良好機會所在。他們推出了一系列新產品，並且持續獲得關注，他們擁有非常健康的未來發展機會。這確實是我們業務中一個非常好的部分，因為它非常經濟高效，而且它與我們的消費品業務和商業[套裝]業務基於相同的資產運營。

The other thing I would mention about packaging as we think about the future potential is I believe we'll find opportunistic synergies and revenue synergies in packaging with the SWM merger, whether that's cross-selling, you know, capabilities for lighter weight papers that we need to grow packaging, some of the distribution networks that each company has, I think they're given greater opportunity to leverage that in the future.

當我們思考包裝的未來潛力時，我想提到的另一件事是，我相信透過與 SWM 的合併，我們會在包裝領域發現機會協同效應和收入協同效應，無論是交叉銷售，還是我們需要發展包裝的輕質紙能力，或者每家公司都有的一些分銷網絡，我認為他們將來會有更大的機會利用這些優勢。

Certainly. It makes a lot of times. And just in relation to the merger, have you heard anything new since the public announcement in terms of whether it's customer reaction or, you know, any more details around the synergies in the business that [already].

當然。這確實發生過很多次。關於合併，自從宣布以來，您是否聽到任何新消息，無論是客戶反應，還是關於業務協同效應的更多細節？

I would tell you, the customer reaction has been overwhelmingly positive and it's been across those segments, fine paper and packaging, as well as technical products. I was expecting it in technical products, but our fine paper and packaging customers have reached out with an understanding of the opportunities for a greater portfolio. So I think that's really exciting for the fine paper and packaging team as well as technical product.

我想說的是，客戶的反應非常積極，涵蓋了文化紙和包裝以及技術產品等各個領域。我原本預期科技產品領域也會如此，但我們的文化紙和包裝客戶已經聯絡我們，以了解擴大產品組合的機會。所以我認為這對文化紙和包裝團隊以及科技產品團隊來說都非常令人興奮。

I mean, you know, have we learned anything more on the synergies? We've announced the $65 million of hard synergies. We view that as incremental EBITDA opportunity, highly achievable. Around this building, we refer to them as bankable. Just so it's really clear that we have to go and get those and drag margins but in addition to that, there's revenue synergies that are significant cross-selling opportunities, geographic opportunities, technical capabilities, and vertical integration opportunities that we haven't even begun to tap into yet. And as the integration team has started to form and work together, they're identifying even additional opportunities. So I'm extremely excited about the upside potential.

我的意思是，你知道，我們在綜效方面還有什麼收穫嗎？我們已經宣布了6500萬美元的硬協同效應。我們認為這是增量EBITDA的機會，而且非常容易實現。圍繞著這棟大樓，我們稱之為「可獲利的」。很明顯，我們必須努力實現這些目標，並提升利潤率。除此之外，還有收入綜效，包括重要的交叉銷售機會、地理機會、技術能力和垂直整合機會，這些我們甚至還沒有開始利用。隨著整合團隊的組建和合作，他們正在發現更多的機會。所以我對未來的潛力感到非常興奮。

Great. And maybe just around the supply chain challenges that you did talk about, is there a way to maybe size the loss business, you know, due to that?

太好了。或許就您剛才提到的供應鏈挑戰而言，有什麼辦法可以衡量由此造成的業務損失嗎？

Yes, that's a tough one for us, Chris, because we've been scrambling for a couple of things. So we've been substituting different kinds of products together for, and so you've seen the effect on mix. We're actually pleased to see that. We had a favorable impact from mix on the bottom-line, which is what we've really been trying to focus on. So from a topline of the capacity perspective, we've been doing what we can to position the business and the assets to respond to what's happening with the demand. But what we're seeing is order backlog is out. You know, we're taking orders out to the back half of the year right now. So from an overall capacity perspective, it's a little tough to estimate how much we are, if-- what we're foregoing from the topline and that impact.

是的，克里斯，這對我們來說很棘手，因為我們一直在為一些事情而苦苦掙扎。所以我們一直在用不同種類的產品互相替代，所以你已經看到了產品組合的變化。我們很高興看到這一點。產品組合對獲利產生了正面的影響，而這正是我們一直努力關注的。所以從產能的角度來看，我們一直在盡我們所能地調整業務和資產，以因應需求的變化。但我們看到訂單積壓已經結束。你知道，我們現在正在把訂單排到下半年。所以從整體產能的角度來看，很難估計我們放棄了多少營收以及由此產生的影響。

Fair enough. And then, so are you at parity with the price cost kind of equation at this point, given the pricing increases?

不錯。那麼，考慮到價格上漲，目前的價格成本等式是否與此持平？

Well, this is the quarter we offset input costs. So we had pricing of $30 million in the quarter and input costs of $29 million. So we hit that point inflection and we expect that to continue through the year, really accelerating, expanding in the back half of the year. Q2 likely looks more similar to Q1, but then we start to expand more dramatically in Q3 and Q4. And we've announced additional pricing actions into Q2 and Q3 to drive that because, as Paul mentioned, inflation is still continuing to move upwards.

嗯，這是我們抵銷投入成本的季度。本季我們的定價為3000萬美元，投入成本為2900萬美元。所以我們達到了這個拐點，預計這種情況將持續到今年年底，並在下半年真正加速擴張。第二季可能與第一季更相似，但隨後我們將在第三季和第四季開始更大幅擴張。我們已經宣佈在第二季和第三季採取額外的定價措施來推動這一成長，因為正如保羅所提到的，通膨仍在持續上升。

We have no further questions at this time. I'll turn over to Kyle Anderson for any closing remarks.

目前我們沒有其他問題。接下來，請凱爾安德森做最後發言。

Thank you for your time today. To recap our call, demand for our products remain strong across our product categories. And we're seeing the results from the execution of our pricing strategy to offset the inflationary pressures and enhance our margins. We continue to make strong progress against our strategic agenda and in our near and long-term goals, including the significant step of our announced strategic merger vehicle with SWM. Details of the transaction can be found in the S4 statement, which was filed yesterday by SWM.

感謝您今天抽出時間。回顧我們的電話會議，我們所有產品類別的需求仍然強勁。我們實施的定價策略正在抵銷通膨壓力並提升利潤率，並且取得了成效。我們在策略議程以及近期和長期目標方面繼續取得強勁進展，包括我們宣布與SWM達成策略合併的重要一步。交易詳情請參閱SWM昨天提交的S4聲明。

We look forward to interacting with many of you at our upcoming investor events, including both the Deutsche Bank and Stifel conferences in early June. Thanks and have a great day.

我們期待在即將舉行的投資者活動中與各位互動，包括六月初舉行的德意志銀行和Stifel會議。謝謝，祝您有美好的一天。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

女士們，先生們，今天的電話會議到此結束。感謝您的參與。現在您可以掛斷電話了。