Turkcell Iletisim Hizmetleri AS (TKC) 2015 Q2 法說會逐字稿

Good day and welcome to the second quarter 2015 results announcement call. Throughout today's recorded presentation, all participants will be in a listen only mode. (Operator Instructions). At this time I would like to turn the conference over to Mr. Nihat Narin, Director of Investor Relations. Please go ahead, sir.

Thanks you [Julia]. Thank you for your participation and I would like to welcome to our call on behalf of the management team here. We will start today with the presentation by our CEO, Kaan Terzioglu, followed by a presentation by CFO Murat Erden and then we will go into the Q&A session.

As usual just before we start the presentation, I would like to remind you of our brief legal notice. In this presentation we will make statements that are forward-looking about our future targets and expectations. These are based on our current views and assumptions, which may of course change in the future, and our actual results may be different.

Mr. Kaan please the floor is yours, sir. Thank you.

Thank you. Thank you Nihat. Good evening and good afternoon everyone. Welcome to Turkcell's results call for the quarter ended June 30 2015. We are here to present our results together with Turkcell's executive team, including our Chief Marketing Officer, Burak Sevilengul, Chief Financial Officer, Murat Erden, Chief Technology Officer, Ilker Kuruoz, Chief Legal Officer, Serhat Demir, and Chief Business Support Officer, Seyfettin Saglam.

Before getting into numbers, I would like to address our progress towards meeting some of the commitments that we have made in our first call last quarter. First, we have completed our new organizational structure. Having eight executive positions instead of 16 has already led to greater operational efficiency through simplification of our business processes. With this structure, we have consolidated the management of our mobile and fixed businesses, while achieving simplicity, transparency and accountability.

We have also executed on our distribution platform and decided to work with two distributors instead of five, introducing a new channel design for the converged offer. Second, we have adopted a single point of service approach for our converged services. This allows us to focus on customer experience with the new sales channel structure responsive to all customer needs, fixed or mobile, corporate or consumer.

Thirdly, in line with our declaration that we will be evaluating our organic and inorganic growth opportunities to strengthen our position in the countries of operation, we have acquired the remaining 44.96% of Eurasia holdings, Astelit -- the company's name -- for TRY100 million. This allowed us to restructure Astelit's debt to eliminate foreign currency risk and I will be elaborating on this in my presentation later on as well.

In the same spirit in the upcoming quarters we will be focusing on improving our balance sheet through optimizing capital structure, addressing working capital needs, evaluating existing operations performance and M&A options. We are evaluating our asset portfolio as well in International markets as we go on.

Further, in the next couple of months Turkey's spectrum auction will soon be a key agenda item and we will be looking into this opportunity as well as challenge as we move on.

Overall we have done so far is a solid example of how we can work together as a team and create value, and I would like to thank the Turkcell's team, Turkcell family and special thanks to the harmonious relationship with [a function as we move forward].

Moving on to the next page, a few words on the numbers. Turkcell Turkey, accounting for 92% of our Group revenues, recorded 9.2% top line and 11.9% EBITDA growth, driven by strong mobile and fixed broadband and mobile services growth. The EBITDA margin reached 32.3% underlying the strong quarterly operational performance.

Turkcell International and other subsidiaries generating 8% of total revenues, heavily impacted by the devaluation in certain markets, has declined in terms of revenues by 21.2% to TRY282 million. Yet the quarterly improvement in the (inaudible) led to TRY109 million net income for the International business.

Overall, consolidated revenues rose 5.8% to TRY3.1 billion and EBITDA climbed to TRY995 million with a 9.7% increase. The EBITDA margin grew 120 basis points to 32.2% due to better operational expense management and the vibrant broadband market. In this quarter consolidated net income ramped up 44.6% underlying the operational site of Turkcell Turkey and the positive impact of foreign currency movements in International markets. As a result of this performance, we have recorded our highest second quarter revenue, EBITDA and net income both for Turkcell Turkey and Turkcell Group.

Going on to the next page, as we announced in the first quarter we report Turkcell Turkey business under three segments. Consumer and corporate segments were the main growth drivers for the quarter. The consumer segment generating 78% of Turkcell Turkey grew 9.9% year-over-year to TRY2.2 billion. This is a result of strong growth in mobile and fixed broadband and services business, reflecting ever-rising demand, coupled with higher consumption.

Corporate business posted 8.6% growth while wholesale revenues remained almost stable at TRY92 million. Overall, this has resulted in continued solid performance in Turkcell Turkey with 9.2% growth.

I will mention the performance of key revenue drivers. Data generating over 30% of business in Turkey continued to grow rising 42.2%. This was on the back of a 47.2% rise in mobile broadband and 30% increase in fixed broadband, particularly coming from the rise in smartphone penetration, this year from 35% to 45% higher user number and increased consumption. Given the demand for our data services in the near term, we expect this business line to become the biggest part of our portfolio.

This quarter we launched our new T-series smartphone, the 4G enabled T60 at an affordable price. Since its launch on June 23 more than 30,000 units have been sold. We are confident that the T60 will further contribute on penetration figures.

Voice revenues at about 52% of Turkcell Turkey fell 4.2% reflecting the market trends. We continued to leverage our wide range of services and solutions, such as BiP, our instant messaging platform, Turkcell Music, Smart Storage whereby services revenues rose 48.9% compensating for the 15.3% decline in SMS revenues. Other revenues mainly comprising our retail and call center revenues grew by 22% to TRY122 million.

In the second quarter the telephone market in Turkey grew in terms of revenue and subscribers. In this environment we observed increased demand for our services, coupled with higher consumption and Turkcell Turkey has continued to improve its operational performance as an integrated player. We are glad to observe that the revenue growth rates in the sector are above the inflation rate which is promising.

On the mobile side, our post-paid customer base rose 334,000 to 15.9 million subscribers. Post-paid customers now constitute 46.7% of the total customer base. Total subscriptions declined by 290,000 due to losses from low ARPU generating pre-paid customers, while blended ARPU improved 8.6% from TRY22.1 to TRY24, helped by a positive subscriber mix and higher data usage.

Our fiber and ADSL customers in total exceeded 1.3 million supported by a strong fiber network, dedicated sales force and (inaudible) activities. In fiber, we strengthened our market leader position adding 42,000 new customers while continued growth momentum in ADSL saw 32,000 net additions. The fixed residential ARPU rose slightly to TRY47.9.

Turkcell TV platform continued its solid user penetration, reaching 140,000 customers on 40,000 quarterly additions. This increased our triple play ratio to 16% from 13%. Overall, including mobile users, TV subscriptions rose to 210,000 advancing towards our yearend target of 400,000.

In line with our new structure and strategic priorities, we would like to explain to you how we redefined our target market as a total telecom market in Turkey. This expense, the total market size that we address, by 56% from TRY19 billion to TRY30 billion. From now on we will be monitoring our market share performance based on total telecom revenues instead of standalone mobile revenues or subscribers. In this market we position ourselves as the strong second player with 35.6% revenue share going forward with a name to become profitably increasing our share to taking the lead position.

Moving on to Turkcell International operations in Ukraine and Belarus, life:) or Astelit's revenues rose 11.9% year-on-year in local currency with the EBITDA margin improved to 30.2%. Three month active subscriber base increased 293,000 to 10.6 million and we are now able to provide 3G services to almost 2.7 million customers in less than two months since we launched our service.

Macro economy instability in Ukraine, ongoing since early 2014, continued, yet the 10% quarterly appreciation of the local currency against US dollar allowed Astelit to post translation gains this quarter. In Belarus BeST's financial platforms remained negatively impacted by the macro-economic environment. The local currency shed a further 4% against the US dollar during the quarter, leading to further foreign currency losses. In local currency terms revenue rose by 16.7% year-on-year with the expanding active subscriber base reaching 1.1 million subscribers.

We have taken major steps in Ukraine, expecting it to be a major component of our International business and the pilot country as we transfer our experience to the region. To begin with, as highlighted, we acquired the remaining shares of Astelit. Following the close of the deal, we took a further step to restructure Astelit's debt.

Prior to this, Astelit had outstanding debt of $875 million. We converted the material portion of this debt to equity and restructured remaining debt to eliminate the associated foreign currency risk and its potential impact on our consolidated financials. Accordingly, post restructuring, Astelit's debt has become fully denominated in local currency for an equivalent of $163 million and an additional amount of $66 million was abstained as a subordinated loan directly from Turkcell. We believe that -- which is at around two times of its EBITDA -- this is the optimal debt structure that will allow Astelit to manage its cash flow more efficiently.

The overall first half performance of Turkcell Group was in line with our plans. Moreover, while being very enthusiastic about the EBITDA levels and sales performance towards the end of the second quarter, we remain cautious about the potential impact of domestic politics in Turkey and geographical developments.

Therefore we maintain our full year revenue growth guidance of 6% to 9% and an EBITDA margin of 31% to 32% for 2015. As highlighted earlier, one of our priorities is to establish an open dialogue with the investors and the analyst community. We intend to interact with you on a regular basis to discuss our business and benefit from your valuable feedback.

In light of this, the Turkcell executive team will be hosting a capital markets day in London on November 9. We hope to see you there to further discuss our business activities and future growth strategies. Thank you for listening to me and I will now hand over to Murat for the financial review. Murat.

Thank you Kaan. Dear audience, in the second quarter in line with our Group plan, group revenues rose 5.8% year-on-year to TRY3.1 billion with strong operational performance in Turkcell Turkey on the back of solid data and mobile services growth. Consolidated EBITDA rose by 9.7% to TRY995 million year-on-year. Based on operational expense management, especially on the sales and marketing activities, resulted from the more value-orientated acquisition strategy led to a stronger rise in our EBITDA.

Meanwhile EBITDA margin reached 32.2% this quarter. This was resulting from selling and marketing expenses declined by 1.5 percentage points, more than offsetting the total 0.4 percentage points increase in administrative expenses and direct cost of revenues as a percentage of revenues.

Let me move onto page 15 now. Group net income increased to TRY712 million ramped up by 44.6%. This was mainly driven by increase in EBITDA and translation gains recorded form the quarterly currency movements in the Ukraine and Turkey operations, despite low interest income and the absence of monetary gain.

Translation gain of TRY261 million has a positive impact of TRY132 million in net income after accounting for minority share and income tax. Last year there were negative net impact of TRY130 million. Interest income on time deposits declined after the dividend payment and due to higher composition of effects holdings bearing low interest rates. In the second quarter no monetary gain looked due to termination of inflationary accounting [endeavors]. Overall the net income margin increased to 23% from 4.7% a quarter ago.

Moving onto page 16. As at the end of June 2015 our net cash position decreased to TRY284 million with the dividends paid back in April amounting to TRY3.9 billion. This also improved our net debt to EBITDA ratio to almost flat from minus 1.1. Meantime, our consolidated debt was recorded at TRY4 million. At the end of this quarter the debt balance of our Ukrainian operations were TRY2.3 million. As we mentioned before, after debt restructuring which decreased Astelit's outstanding debt to financial institutions to UAH3.6 billion, which is the equivalent of less than TRY500 million.

During this quarter the other major cash outflow items include capital expenditures of TRY957 million and corporate tax payment of Turkcell Iletisim amounting to TRY218 million. Of the total CapEx figure TRY683 million was related to Turkcell Turkey and TRY264 million to Turkcell International.

This brings our introductory presentation to an end, and let me hand over to Nihat for the Q&A session.

Thanks Murat. Julia I think at this point we start to have a Q&A session. Would you just please initiate. Is there anybody on the line?

Thank you sir. (Operator Instructions). We'll take our first question from Ivan Kim, VTB Capital. Please go ahead sir, your line is open.

Good evening, two questions from my side please. Firstly on evolution and M&A opportunities, I was just wondering what is the rationale behind that and which markets are you looking at in particular, and how much leverage you would be ready to pick up to proceed with M&A transactions? Maybe a more particular question, whether you are looking to acquire control in Fintur.

Then secondly on the dividend policy, I mean I know that the dividend policy is paid at 50% of net income, but would you consider maybe paying out more like closer to, I don't know, three-quarters of free cash flow, or you'd really be seeking to at least 50% with Nottingham. Thank you.

Ivan thank you very much. Let me start with your first question on the rationale and the priority markets.

We clearly see that we have certain unique competitive advantages in our domestic market which are exportable, and that's why we would like to leverage these capabilities from tower management to network management to customer care to billing activities, credit scoring activities, as well as sales focus to adjacent markets around us. Clearly the priority markets which we have in our mind is markets with traditional cultural alignment with our own market and geographically surrounding our core markets in Turkey.

With regard to your specific question about Fintur, I don't want to go into the specifics in this type of [speculation]. I think maybe that question you can raise at a certain point to tell (inaudible); but clearly our strategy is aligned with those markets that they are operating, and we have an appetite to look into all the markets where we can leverage our core strengths.

In terms of the dividend policy, we have no change to our dividend policy, and it's a Board issue and a General Assembly issue so I would like to stick to that position.

Thank you.

Thank you.

We will now take our next question from Atinc Ozkan from Credit Suisse. Please go ahead, your line is open.

Yes, hi. Good evening. This is Atinc Ozkan from Credit Suisse. Two questions. The first one is basically regarding today's news on the Turkish 4G spectrum auction. I believe there has been a press release by the regulator but we haven't seen the details. I just wanted to take your views on the way the minimum bidding prices has been structured and whether the license fee is still 15 years and what's your views regarding spectrum pricing?

My second question is regarding slide 15 or your very high net income margin for the quarter. I believe your effective tax rate is around 15% versus 27%-36% range we have seen over the past two years. Can you elaborate on the reasons of this low tax rate? Is it driven by the losses of the subsidiaries and whether we will see a similarly low effective tax rate for the rest of the year? Thank you.

Thank you, Atinc. Let me start with the first question about the 4G auction. Clearly this is a sign of Turkish Government listening to industry in terms of concerns. So the new tender specifications has certain level, two sides of the story.

One, I think what we ask for technology agnostic spectrum to be auctioned has been accepted which is a positive sign. On the other side we still see that the timing of the spectrum license in terms of actually 12 years and 9 months now is quite low and the pricing for the spectrum is still too high. So we still have certain concerns about the valuation and how the strategy for bidding will take place, but overall I am glad to see that technology agnostic spectrum auction will take place.

On the second question, in terms of the high net income margin and the effective tax rate of 15%. Before giving the word to Murat I would like to mention that as a Company we are looking for how we leverage the best out of our operating companies in terms of leveraging all the tax assets that we can leverage and I think you are seeing the results of those. But Murat, please elaborate.

Yes, thank you. Regarding the outstanding composition our effective tax ratio that you have mentioned around 15% happens due to [unused] tax losses; time-to-time we can realize those. When these effects of unused tax losses of for example in international markets like [Austria] and Belarussian Telecom, the effective tax rates in the past and going forward are much more close to 20% levels. So right now the 15% is just -- depends on the quarterly performances but cannot reflect going forward.

Okay, that's very useful. Thank you for the detailed answers.

(Operator Instructions) We'll now take our next question from Ranjan Sharma from JPMorgan. Please go ahead, your line is open.

Hi. It's Ranjan Sharma from JPMorgan. Thank you for the presentation and congratulations on the results. Two questions from my side. Firstly, can you share some details on what your plans are to optimize the capital structure, and also on how you plan to improve your working capital?

The second question is around your integrated strategy and how the TV offering fits into it and is there any plans to strengthen your TV offers? Thank you.

Thank you, Ranjan. So let me start with the first question in terms of optimizing the balance sheet and the capital structure.

We currently have a very low debt ratio and we believe it would be healthy looking to the opportunities in front of us as regional expansion as well as CapEx investments, to move to 2 times EBITDA multiple levels of borrowing. So this I think is one of the first areas that we believe there is an opportunity that we can take and make good use of this funding.

The second area about the working capital. Today our balance sheet has an embedded consumer finance operation and this has been a very good decision in terms of taking care of the opportunities of changes in the credit card market in Turkey. As we move on the spinning out of this operation into a consumer finance organization is something that we are working on and we will keep you posted in Q3 about our progress.

So these two activities will improve significantly our balance sheet and hopefully there'll be no more [called] lazy-looking balance sheet in the future.

On the second issue about the integrated strategy and how TV fits, we are the largest fiber-to-the-home operator in the country with 53% market share, almost close to 800,000 subscribers. And what we have seen, the market has a major demand for TV services and we are -- today are able to provide this through our IPTV offering called TV+.

We believe there is further room for additional business models like OTT products for this market, which we will be looking at. As we look into current subscriber base, in less than one year's time actually we have moved 16% on triple-play customer base.

If you look to Q2 of 2014 we had 47% just data, 53% data and voice customers; today we have 16% data, voice and TV services customers, 51% data and voice customers, and 33% single-play customers alone. So this shows a strong momentum and the fact that we are even increasing our ARPU moving onward actually gives us more encouragement investing in this particular area.

Our expectation is to reach about 400,000 subscribers by the end of this year. This will also be having an impact on the content offers that we are going to have and we are working with business partnership business models in terms of getting more content into our TV offerings.

Thank you for that. Can I just ask a quick follow-up? Are you planning to bid for any sports broadcasting rights as you've seen global integrated operators doing?

Clearly sports content, especially football content, in Turkey is a prime content, and in line with our expectations and ambitions to become number one or number two TV services company over the next three to five years, I think it is normal to have ambitions to look into that opportunity.

All right. Thank you.

We will now take our next question from Koray Pamir from Deutsche Bank. Please go ahead, your line is open.

Hello. It's Koray from Deutsche Bank here and thank you very much for the presentations. Two questions on my side. First, going forward do you think -- is there further room for improvement of that OpEx side? So far the measures that have been taken appear to be working. And do you think there is further room in terms of [sales health] and maintaining or keeping OpEx under control?

And secondly, regarding competition, ahead of the 4G, are you currently, so far in the third quarter or going forward, seeing any signs or expecting some sort of escalation in competition particularly on the prospect ahead of the 4G? Thank you.

Thank you, Koray. In terms of the OpEx improvement opportunities I think quarter 2 showed that as we consolidate our teams in mobile and fixed into one, from an executive level, to operational level, to sales level it has proven that we can see and drive more synergies and operational savings.

I would expect this to continue for the foreseeable time as we get better in making these consolidations work. I truly believe that over the next three to five year timeframe we have an opportunity to increase the savings and increase EBITDA by an additional couple of points.

In terms of the 4G tender and the size of competition, at Turkcell, we are focused on the market and on the needs of our consumers. We will be focusing on value-based pricing and making sure that we focus on the converge service offers. So you will see us [regionally] pricing our services in line with the pricing in the economy and the inflationary trends.

Thank you.

We will now take our next question from Ondrej Cabejsek from Wood & Co. Please go ahead, your line is open.

Hi, thanks for taking the question. I was going to follow up on Ranjan's questions, mostly. In terms of cash flow dynamics, if you could elaborate a bit more on what your working capital is, whether there have been increases in receivables with the smartphone penetration as I haven't had time to look at this in more detail, and whether you expect this dynamic to continue going forward.

Because if I just compare the net cash position obviously there was the dividend which was quite big but then there is still some space for explanation from my point of view as to how you got to just [TRY]300 million of net cash. Then second question, potentially, with the pay TV product that you are quite ambitious about, you say your target by the end of the year is some 400,000 subscribers. How are you are positioning this product?

Because like you said before, there's apparently no exclusive content in terms of sports at this point. I think we heard that next year the exclusivity for the Turkish League is gone so in theory you are able to bid on that next year already. But just how are you positioning this product versus Turk Telekom and Digiturk now since you are basically the only ones in the market with big ambitions who do not have any sports content at this point? Thank you.

Thank you very much. Let me start with the working capital dynamics. As I mentioned, our penetration for smartphones has moved from 35% to 45% and we are expecting this to increase to 52%. The reason this is important because we are heavily driving the ownership of smartphones in the market.

This means that we are using financing for making this happen, especially leveraging our own OEM phones for lower-price products. This drives ultimately the mobile broadband growth of almost getting close to 50% and fixed broadband growth of 30%. From a strategic perspective we believe this is the right thing to do.

Having said that, I think as we move on there are opportunities for us to take this business as a consumer finance business, and we have a fantastic infrastructure capability of having credit-scoring for than 30 million customers. This will allow us actually to optimize our balance sheet in a much better way.

As Murat has indicated, we have paid a significant dividend this year but also we have been quite active in making 3G investments in Ukraine as well as in Turkey. We have also acquired license in Ukraine which also required some cash outflow, as well as deployed the entire 3G network in the country and launched the 3G broadband there. So all these things explains I think the changes in our cash position, and as you can imagine, most of our cash is in Turkey whereas most of the debt is in international markets.

On the ambitious TV target, 400,000, I think it's [important] to understand that our offer is not only about the content, it's actually about the user experience. Cloud recording, ability to do catch-up TV, ability to go for three screens or ultimately for four.

The current product we have is practically the only IPTV solution today, but it is only one of the video services we plan to launch over the next couple of quarters. You will see us also active on ad hoc video services as well as more enriched content plays, which we will be working and announcing over the next of couple of quarters.

I agree with you the sports content is very important and I think we will be -- our teams will be working in making sure that we have relevant content for our customers. The reason why we believe we are uniquely positioned in this area is the fact that we have 53% fiber-to-the-home market share. This is really the platform that customers are looking for when it comes to high-definition TV broadcasting with these type of feature sets. Thank you.

Thank you. May I have just a short follow-up? On slide 16 you have also I believe it might be a mistake. It says major cash outflows and then you have increasing trade payables, which doesn't really make sense to me. So is that an increase in receivables that is associated with the smartphone rollout or is that a decrease in trade payables?

I believe it's just (inaudible) cash management processes. It just means we created cash [after the balances].

Okay. Thank you.

(Operator Instructions).

Well then, I would like to thank --

We will take our next question from Atinc Ozkan from Credit Suisse. Please go ahead, your line is open.

Sorry. Sorry, just a follow-up question. Well, my question is regarding your net cash position. You have paid 3.9 million dividends and in July you have also acquired your minorities in Astelit also deleveraged the Company, and you I think have still some CapEx to realize in the second half plus 4G auction.

So a quick and dirty calculation implies that you will be in a net debt position by the end of the year probably, and that may also trigger a shorter tax position. I'd like to take your -- Murat Erden's views on this and if you could confirm your short and long FX positions at a country basis as [a first-off], that will be most useful. Thank you.

Hi, Atinc. Can you remind the second part what kind of opinion you like me to have about the position -- about the current or the year-end FX?

Well, maybe as of first half then we can all deduct the short FX position in Astelit. I am just asking this because we all know that in the financial footnotes your reported consolidated short or long FX position is misleading because you are realizing your FX losses at International subsidiaries or FX case depending on currency movements. And you've historically had a long FX position at (inaudible) in Turkey. Thank you.

Okay. So let me start with the outstanding position. Right now as of the end of the quarter we had strong FX holdings. You are absolutely right, our FX position is only international operations. But as of the end of July, as Kaan stated, we made a significant restructuring and we use our FX holdings to restructure our debt capitalization in Astelit.

So almost half of the outstanding debt exposure of the Group will be halved due to the restructuring of Astelit. We have made a recent announcement about the restructure in Astelit which means $686 million of equity has been injected to Austerlitz. From there on, as of end of July, we're going to have only UAH3.6 million as a loan which corresponds almost $163 million as a debt position, and this is completely denominated in Hryvnia.

So our overall local currency exposure in Astelit will allow us to minimize or completely erode the FX losses going forward in Astelit. Which brings us an FX position only in Belarussia which is going to be another subject of interest and solution that we are looking in the third quarter of this year.

Right now we still keep a majority of our cash in FX which was the strategy in the first half of the year. Before and after the elections we still maintain our FX holdings for the upcoming potential acquisitions, CapEx payments and restructuring of debt. This is how I can summarize it.

Okay, that's very useful. If you could confirm my calculation that by the end of the year because of 4G auction and other CapEx requirements you may end up with a net debt position versus your tiny net cash position as of end of June. Thank you.

Atinc, the thing is that the 4G tender has also embedded financing capabilities. It doesn't mean a direct full cash payment on a Euro basis. So there is an opportunity embedded into the tender process itself.

Seasonally we generate cash more in the second half of the year versus the first half of the year where we did have significant regulatory payments. There are dividend payments and corporate tax payments. So you know the mobility is increasing in the [summer] so cash accumulation in the third quarter and fourth quarter is going to help us as well. Okay?

Yes, very useful, sir. Thank you.

Thank you.

Thank you, Atinc. I think if there is no more questions I would like to take the opportunity and thank every one of you. Over my first four months you have been extremely helpful for getting me up to speed with the industry and the Company. I have valued it a lot, all your feedback. Thank you very much and I will pass now to Nihat.

Thank you, sir. Well, that brings us at the end of the day and of course end of the call. I'd like to thank you for participation and if you have any follow-up questions please do call the IR team and of course our reply will be available. Please also feel free to dial in in our website to listen our reply. Thank you and have a good day.

Looking forward to seeing you all on November 9 in London. Thank you. Bye-bye.

Thank you. That will conclude today's conference call. Thank you for your participation, ladies and gentlemen. You may now disconnect.