豐田汽車 (TM) 2006 Q1 法說會逐字稿

Good day everyone. My name is Mark. And I would like to welcome you to the Toyota Motor Corporation's financial results for the 3 months ended June 30, 2005 conference call with your chairperson Mr. Takashi Hata. [OPERATOR INSTRUCTIONS]. I would now like to turn the call over to Miss Ikuno Fujii from Toyota Motor Corporation, who will introduce the conference.

Hello everyone. Thank you for joining us today. My name is Ikuno Fujii, a member of Accounting Division of Toyota Motor Corporation. And I would like to welcome you to today's discussion of earnings results for the 3-month period ended June 30, 2005.

I would like -- I am joined by Mr. Takashi Hata, Managing Officer of Toyota Motor Corporation.

Today's conference call consists of 2 parts. First, Mr. Hata will review Toyota's earnings results for the 3-month period ended June 30, 2005.

As a reminder, the slides from this presentation are available on the financial results section of the Toyota Motor Corporation website at www.toyota.co.jp/enir/ -- sorry, again, www.toyota.co.jp/en/ir/financial_results/index.html.

After Mr. Hata's presentation, we will open for your questions. We expect that the entire call will last approximately 1 hour.

Also, please note that the following presentation contains forward-looking statements that reflect our plans and expectations, and our actual results may be materially different from those expressed by these forward-looking statements. A complete cautionary statement with respect to forward-looking statement is included on page 2 of today's presentation material.

In addition, a complete cautionary statement with respect to insider trading is included on page 3 of today's presentation material, which again can be downloaded from our internet home page www.toyota.co.jp/en/ir/presentation/index.html.

Now, I would like to turn the call over to Mr. Hata.

Hello everyone. I am Takashi Hata. Thank you for joining us for today's discussion of Toyota's earnings release for the 3-month period ended June 30, 2005.

Consolidated results for the first quarter are shown in slide 5. Net revenues was JPY4,981.7 trillion. Operating income was JPY405.1b. Net income before taxes was JPY421.8b. And net income was JPY266.8b.

Next, please take a look at our consolidated vehicle sales. Sales grew in all regions for a total of 1.948m vehicles sold, which are [showing] an increase of 157,000 vehicles, or 8.8% compared with the same period last year. In particular, the Asia region has achieved a remarkable growth in sales and profit. Because of the increasing significance of this region, we have decided to disclose the business performance in Asia separate from the other regions beginning this quarter.

I do now like to discuss the factors contributing to operating income. Operating income decreased by JPY43.5b from the same period last year. A major factor contributing to the decrease was higher R&D expenditures and other expenses. We have increased the level of expenditures for the future business growth. The breakdown of the JPY86.8b increase includes JPY21.7b in increased R&D expenditures, and JPY55b increase in labor cost relating to business expansion, depreciation and other expenses.

Also, contributing to the decline was JPY10.1b in valuation losses on interest rate swaps. On the other hand, marketing effort and the cost-reduction effort each brought a positive impact of JPY30b offsetting the unfavorable effect of a weaker model mix and the higher raw materials prices.

Next, I would like to discuss the operating result by region. To begin with in Japan the number of vehicles sold increased, but operating income decreased by [JPY40b] and JPY64.6b. The decrease was largely due to the negative impact of a weaker model mix. Last year, for example, the fully remodeled Crown luxury vehicle show the strong sales this year compared to vehicles, including Vitz and the Passo, and contributing to our sales growth.

We expect, however, that the model mix would improve from the later half of this year to next year due to new vehicles introduction, including the new Lexus models that were recently announced.

Let me now discuss North America. Consolidated vehicle sales in the region increased by 69,000 vehicles. And our market share in the United States went up to 12.9%, an increase by 1% compared with the same period in the previous year. As gas prices increase and the consumer awareness of environmental issues is heightening, [plus] and our SUV hybrid, as well as the Corolla and other existing models showed a favorable sales. We believe that we have been able to continue expanding sales by strategically controlling marketing costs, such as incentives.

I would now like to discuss the European market. Vehicles produced locally in the region, such as Corolla, have maintained steady sales. The market environment, however, is severe and the competition has become increasingly fierce. In addition, in order to establish Lexus as a global premium brand we have been involved with various strategic development effort including the increase in exclusive car dealers throughout Europe. Due to the cost effect of these activities, first-quarter operating income in Europe decreased by JPY14.2b compared with the first quarter of the last year to JPY16.7b.

Next, I would like to talk about Asia. From this financial period we have decided to report Asian market data as an independent geographic segment. In Asia the newly launched IMV project has progressed successfully and the vehicles sold increased by 13% to 229,000 vehicles. In almost all the countries in the region we achieved record vehicle sales. Profitability in the region has improved by increasing the local procurement.

In addition, with the IMV project the export of vehicles to the Middle East and Europe began in July. As a result, operating income in Asia for the first quarter increased 1.6 times compared with the same period last year to JPY39.8b.

Other regions, including Africa and the South and Central America, have continued to show favorable sales, particularly in all the producing countries. Vehicle sales grew by 17% year-on-year to 270,000 vehicles. Operating income increased by approximately 1.3 times to JPY17b.

With respect to the Financial Services, profit decreased by JPY6.5b compared with the previous first quarter, due to a negative effect from valuation losses and the interest rate swaps totaling JPY10.1b. Having said that, we have achieved a higher net income due to an increase in financing volumes.

Now, let me talk about three major points regarding this quarter. Please see the next slide. The first point is about the synergies in operating income and our model cycle. In the past year our operating income ratio has gradually declined. One reason is due to the effect of the model cycle in which new vehicles are introduced. We expect, however, that the first half of this fiscal year represents the lowest point of the model cycle. We expect an improvement from the later half of this fiscal year through next year with the [fronting] introduction of the Lexus and other new models.

The second point is the investment and the development of our global business foundation. As I mentioned in the discussion regarding operating income, in order to realize future growth annual expenditures of JPY770b in R&D and JPY1.25 trillion in capital expenditures are made continuously and strategically.

As you can see, in order to respond to the strong demand in various regions of the world, we plan to strengthen the basis of our global operation by combining advanced researches and development, and the increasing production capacity. We believe these investments lay the foundation for the future profit. And, therefore, we intended to make such an investment steadily.

The further point is about Asian market, which is becoming increasingly important to Toyota. Despite the difficult period of -- that followed the Asian crisis in 1997, after a series of discussion regarding the significance of the region, we continued local operations investment and the development of human resources. As a result, Asia has become a significant production and marketing center on a global level, which generate nearly JPY40b of operating income past quarter.

Going forward, under the IMV project this region is expected to become a separate center for export to other regions, and a major profit center which we will continue to grow.

Finally, I would like to explain our consolidated vehicle sales for this fiscal year. We are raising our May forecast by 120,000 vehicles to 7.97m vehicles. With this division we expect that vehicle sales will significantly exceed last year's result of 7.408m vehicles by 560,000 vehicles.

Slide 18 shows the prospective figures for Toyota and Lexus brand, excluding Daihatsu and the Hino. In terms of the consolidated profit outlook for the current fiscal year, the production and sales of vehicles have been increasingly steadily. And with the current levels of the exchange rate, we will strive to achieve an increase in revenues and the profit compared with last year.

This conclude my presentation. Thank you for your kind attention. Now, I'd be happy to take your questions. Thank you very much.

Thank you Mr. Hata. During the question-and-answer session we will have consecutive interpretations for questions and answers in both Japanese and English. We ask you that -- we ask that you please follow the instruction of our conference operator please.

Thank you. [OPERATOR INSTRUCTIONS]. Our first question today comes from Mr. Michael Bruynesteyn from Prudential.

Hello, Hata-san and thank you very much for having the call today, and taking my question.

Could I ask you first of all why there's no change in your guidance in FX?

And second of all, could you give some color on the Lexus launch in Japan for those of us who are not there in terms of consumer acceptance and the opportunity for premium pricing, and what the distribution network is going to look like?

Thank you for the question Mike. I took your first question to mean the reasons why the foreign exchange guidance was not changed for the current fiscal year.

As you already know, we assumed JPY105 to a dollar and JPY135 to a euro as the basis for business plans for the current fiscal year. And at the early part of this spring -- spring this year, we thought at those levels the assumptions would be quite appropriate for the formulation of business plan.

However, in the most recent period, at the moment, that is to say, yen has decreased stated vis-a-vis the dollar. However, significant uncertainties still remain including how the Renminbi will evolve going forward. And therefore, we have decided to plan for our business without changing any currency exchange rate assumptions from the Asia assumptions in, and after, the second quarter as well as the basis for business plan. And that is my response to your first question.

Your second question was related to the launch of Lexus here in Japan. As you know, the Lexus business is scheduled to be opened on August 30. And in line with that just last month here in Japan outline of the Lexus channel in the business was announced. Thanks to the good conditions, the distribution network is being established and developed very smoothly. And by the time of the opening, 143 dealers will be in operation. And by the end of this year, that is 2005, 8 more dealers will be added to the 143 that will initiate this operation on August 30. And therefore, the development and establishment of the distribution network is on track with the original plan.

Toward the actual distribution and sales will start at the end of August. And we intend to do our business in order -- we intend to do our best in order to ensure the successful start up and opening of the Lexus business here in Japan.

Judging from the reactions that we received at the announcement at the end of last month, as well as the comments we have received subsequently, at the moment it seems that Lexus is being accepted quite favorably here in Japan.

With respect to the pricing of Lexus, first of all, the target users, customers of Lexus, are those so-called high net worth individuals with new values, who would not be confined, or limited, restricted with any traditional fixed ideas or values. And therefore, we are hoping that in line with that, Lexus will make an important contribution to both sales and profitability.

Thank you very much.

Thank you.

[OPERATOR INSTRUCTIONS]. Next we will take a question from Steven Hill with MFC.

Good evening and thank you for taking our question. It's regarding the expenses increase that you spoke about. Is it reasonable to multiply that figure by 4 to get a forecast for the year, or given the large amount of capital investment that you -- is taking place, should we expect even higher depreciation charges over the coming year?

Thank you for the question Mr. Hill. Your question was related to the factors contributing to an increase and also decrease of our operating income.

I reported earlier that research and development expenditures and other expenses depressed the operating income by JPY86.6b. And let me elaborate on those expense items. Since the second quarter last year, we have started increasing expenses in general for the purpose of expanding the business in the future years. And this general tendency will continue up until the -- this tendency has continued up until the first and second quarters of this year.

However, starting in the third quarter the margin of increase will be contained more than in the past. Of course, depreciation and labor costs relating to business expansion will continue. However, other expense items will start showing slow-down in the margin of increase here in - year-on-year starting in the second half of this year.

That's fine, thank you very much indeed.

Thank you.

Our next question comes from Rick Herman with Philadelphia International Advisors.

Thank you for the call Hata-san. My first question is in regarding the Japanese region, if you can discuss in more detail the shifting model mix to the compact vehicles. And if you have a particular strategy as to certain percentage of your vehicles that you want to increase to the compact vehicles, or some type of an operating profit target. Because, obviously, the compact vehicles have lower margins, and that will be somewhat offset by the higher margins of the Lexus brand. So, what's going to be the end result as far as your operating profit, or what's your forecasted target in that area?

And also, how does that work in the U.S. as far as your strategy to attract younger customers through the planned brand, and the lower operating profit of those smaller vehicles versus your other vehicles?

Thank you for the question Mr. Herman. Your question was related to model mix, the Japanese conditions and its impact on the profit, and also the U.S. conditions, particularly, the model mix centering on Scion, its impact on the profitability as well as the strategy vis-à-vis that were your questions.

First, let me respond to the Japanese situation. As I mentioned earlier, last year large vehicles, especially Crown, sold extremely well. However, in the first half of the current fiscal year smaller models, and especially Vitz, increased substantially in sales. And because of that change, the model mix this year here in Japan had negative impact on the overall profitability.

However, as I have been describing now for some time, starting in the second half, Lexus will be introduced. And therefore, towards the end -- the second half and into the early next year we are expecting Lexus to start making significant contribution to the profitability. And as a result of that, we are expecting that the profit situation will start showing the tendency of improvement. And under the current outlook we are likely to be able to achieve the profit objectives that we have set at the beginning of the year.

Secondly, let me respond to the model mix conditions in North America, particularly Scion. But, first of all, let me refer to the fact, which may not be directly related to your question. That is to say, since the introduction of the Scion in North America we've been able to make a significant headway in gaining younger customers towards Toyota. And this in itself carries a tremendous importance for our future business. And we are expecting that the fact that we've been able to gain so many younger customers will contribute very importantly to the future business and profit expansion in North America.

Of course, the increase in Scion, and this sort of model mix, could have a limited impact on the profitability. However, generally speaking during the current fiscal year GS and the Lexus vehicle series have undergone a model change. And we introduced a newly remodeled truck line as well as the SUVs. And therefore, the model mix overall is likely to move toward a more positive direction.

Okay, thank you very much for that answer.

Thank you.

[OPERATOR INSTRUCTIONS]. Our next question will come from John Maxwell with Waddell & Reed.

Yes, hello, thanks for taking my question. I was -- in the quarter have you quantified the costs of starting up the dealer network for Lexus, or were those in Japan, or was that significant?

Thank you for the question Mr. Maxwell. Your question was related to the cost implications of starting up Lexus channel here in Japan. The TMC or -- this applies to the consolidated basis as well, but TMC will be incurring some sales and marketing promotion expenses. However, its impact on overall profitability is miniscule.

In Japan it is the dealership that makes investment in outlets and showrooms, after carrying out a very serious scrutiny on whether or not the investment is likely to pay in the future years as a result of the profit generated by such investment. And therefore, dealers are actually making a significant investment. However, these are the investments made by dealers, as I said, based upon their own judgment on the profitability and return generated by such investment. And the expenses incurred by TMC in that regard would hardly have any impact on profit.

And can I ask you just 1 other question on swap evaluation loss? Could you quantify that, or do you do that?

As I mentioned earlier, the interest rate swap transactions depressed the operating income to the extent of JPY10.1b. And let me give you more concrete numbers. On the previous fiscal year, that is to say in June 2004, the swap-related transaction generated positive JPY8.2b, but that number was changed -- shifted to negative JPY1.9b during the current year. And therefore, the net result was JPY10.1b.

Thank you, sorry for -- .

Just for the sake of greater clarity, although I do believe that Mr. Maxwell is fully aware of the following, but I would like to add the following. The Toyota Financial Services subsidiary is engaged in interest rate swap transactions as a normal ordinary operation.

For the purpose of avoiding risks of totally unpredicting cash-flow being caused, as a result of the interest rate fluctuations in the market. And therefore, this valuation loss is nothing related to unrealized losses stemming from speculative transactions, for example, involving derivatives.

Thank you very much.

Thank you.

Our next question today will come from John Greenhill with Lazard.

Hello, thank you very much Hata-san for the call. I was just wondering if you could comment on -- if you look back the cost savings seems to have trended down from about JPY70b a quarter a couple of years ago, down to something nearer to JPY30b now. Can you perhaps try and comment on whether that's simply the head-wind of higher raw material costs, or whether you're actually seeing -- finding it harder to generate underlying cost savings as well?

Thank you for the question Mr. Greenhill. As you've pointed out, in the high periods we were able to generate cost savings to the tune of JPY70 or JPY80b per quarter. However, in the first quarter this year the cost saving was JPY30b. And the first factor is exactly the one you mentioned, that is to say, the impact of the higher prices of the raw materials, especially steel.

And at the same time, the cost improvement we achieve includes the cost reductions achieved through the planned cost whenever new models are developed, or new vehicles are launched. And therefore, what sort of vehicles are developed during the period and what sort of vehicles are launched during the period have a very important bearing upon the cost reduction figure of any given period. And during the current quarter that impact was also felt in this area.

Thank you.

We'll take our next question from Greg Norton-Kidd with Omega Advisors.

Thank you very much for your time today Hata-san. I know it's late in Tokyo.

I had a question about the U.S. market. Some of your American competitors have had very aggressive incentive schemes over the last couple of months. I'm wondering if you can comment at all on how you responded to that in June and July, and what your plans are for the next few months as well?

Thank you for the question Mr. Norton-Kidd. Your question is related to U.S. market, especially incentive situation.

As I explained during my presentation, our sales in the United States are evolving very favorably and strongly. And therefore, our incentives remain, more or less, at the same level as the previous year. And on average, other manufacturers are showing the similar trend, I believe. Relative to the industry average our incentives remain low.

And in that general context, we conducted more or less regular price revision in the upward direction. But that has not had any negative impact on overall sales volume. And therefore, we would continue with the similar incentive levels -- incentive policy as in the past. That is to say, incentives will be used very efficiently whenever our sales promotion efforts are required to sell vehicles that had -- that are at the lower period of the life -- its model life, or whenever incentives are required for the purpose of a greater sales volume.

Can I just ask a follow up question, following on on incentives. With your product cycle improving next year with more new models coming through the pipeline, would you expect incentives to be materially lower?

As I mentioned earlier in the case of Toyota, the usage of incentives has a very high sensitivity, or reaction, from the market. And the incentive policies decided by looking at the competition in the market, how our competitors are behaving in the market at any given time. And based upon the comprehensive evaluation of those factors, the incentive level of any given time is determined. And therefore, it is extremely difficult for me to say anything definitive with respect to the incentive level next year.

Thank you.

Thank you.

[OPERATOR INSTRUCTIONS]. Next we'll take a question from Kurt Sanger with MacQuarie Securities.

Good evening Hata-san. I have a couple of questions please.

Regarding raw material costs and the year-on-year negative impact, do you see the negative impact higher in the first half or in the second half?

Thank you for the question Mr. Sanger on the impact of the higher raw materials prices. As I mentioned earlier, higher prices of raw materials do have an impact on the profit situation. However, the impact to date has remained within the range that we had anticipated or assumed in the past.

And there are certain negotiations that need to be continued into the second half of the fiscal year. And therefore, that mix -- we have not been able to fully determine accurately the likely impact of the higher prices in general. However, we intend to continue making effort seriously to absorb those impact of higher raw materials prices.

Okay. My second question is in your OP variance analysis. You were very kind to give a breakdown of the other cost, the JPY86.8b. One of those was, you said, labor, about JPY55b. Earlier, in the Japanese call, you broke that down further and 1 number was about JPY26.6b on systems spending and others. Can you give me an example or 2 of what kind of spending we're talking about here? It's quite a large number.

Thank you for the question. For the sake of clarity, let me once more confirm the numbers I gave you earlier. That is to say, 1 of the factors depressing operating profit was the research and development and other expenses. And I gave you the breakdown. The first 1 was the increase in research and development expenses and others to the tune of JPY86.8b.

More specifically, research -- increase in research and development expenses totaled JPY21.7b, or subtracted, so that JPY21.7b, from the operating expenses. And valuation losses on swap transactions amounted to JPY10.1b. And the various expenses relating to business expansion totaled JPY55b.

And the further breakdown of that JPY55b is as follows; depreciation JPY95.b, labor costs JPY14.2b, this is the labor costs of TMC on the stand-alone basis, and that was JPY14.2b. And others added up to JPY26.6b. And that others includes I.T. systems expenses, the expenses relating to maintenance and improvement of plants, and also outsourcing for the purpose of enhancing efficiency of administrative activities within the Company. All are included under the others. And please understand that those other expenses and increase therein relates to the maintenance and also further expansion of the business scale.

Okay, thank you for your patience Hata-san.

Thank you.

Our next question will come from Michael Ceo with Rockefeller & Company.

Hello. I'm still trying to reconcile the margin deterioration in the Japanese region. I believe it's the period about 350 basis points overturn last year, and you guys have mentioned --

[Interpreter - Excuse me, could you just start over again. Your voice is somehow breaking up and I can't fully capture the numbers you are citing, I'm sorry.]

Is this better?

[Interpreter - So much better, yes. Thank you.]

Hello. I'm still trying to reconcile the margin deterioration in the Japanese region, and wanted to know if all of it is to make shift to the smaller vehicles. And I just wanted to know the contribution of Lexus in Japan, it's only going to add about 10% incremental in volumes, how much of an impact that's going to have to margins. Can you reach the 10% or double-digit levels again?

[Interpreter - Thank you for your cooperation, I really appreciate that.]

Thank you for the question Mr. Ceo. With respect to the first half of the fiscal year, as you pointed and as I explained earlier, the deterioration in the model mix has a negative impact on profitability are partly due to the very strong sales and increase in volume of compact vehicles, especially Vitz.

And as one of the examples I have said that we're expecting some improvement due to the launch of Lexus to the improvement brought about through the deteriorating profit, because of the negative impacts coming from model mix. But, more specifically about Lexus compared with Vitz and other compact vehicles, its profit margin is substantially higher. And therefore, we believe that its contribution will be as significant.

However, since Lexus will be launched in the second half and its sales volume will be achieved only from here on in a limited manner, and therefore its positive impact will also be quite limited. And therefore, overall, including sales of other vehicles, we would like to improve the model mix as well.

Let me rephrase what I have just mentioned, that is to say with new launch of Lexus alone will not be enough to increase the margin above the 10% level.

Okay, so you guys are basically structuring lower and profitability in the Japanese region going forward.

I do not believe that, structurally speaking, structure is such that the profit cannot be generated here in the Japanese market. But rather, last year when Crown and other luxury models sold extremely well, they contributed to substantial generation of profit. And this year since the impact of Lexus will be quite limited, because of the launch in the second half, but once the Lexus reaches the full deployment here in Japan next year and beyond, we are expecting substantial contribution coming from Lexus as well.

And 1 example is shown on slide 14, when the vehicles with a relatively high operating margin rate is launched into the market, the operating income level becomes higher. And that is the sort of market we are operating in.

That's all the questions I had. Thank you.

We'll take our last question from [Gareesh Baku] with RCG.

Hello, I have 2 questions. I was wondering if you could comment on Japanese operating income in light of what I understand to be the fact that most of it is made from exports of Lexus and other models to the U.S. and elsewhere. So, I was under the impression that the Japanese reported operating income wasn't really necessarily made in Japan. And so far, your explanations have centered on Japanese model mix.

And secondly, I was wondering if you could talk about with Lexus now fully planned for Japan. I was wondering if you could talk about Europe and Lexus, and what your plans are long-term, and whether you think European preference for European luxury cars can be changed longer term and whether you might be -- just what you're thinking about that very long term, 5 or 10 years down. Thank you.

Thank you for the question. First question was related to the model mix, or more specifically the relationship between the Japanese operating income and the Japanese market. And since the earlier question was related to the conditions here in Japan and the Japanese market, I, more or less, confined my response to the Japanese market conditions.

However, the stand-alone operating profit of the TMC includes vehicles we have sold in the Japanese market, and vehicles exported from Japan to overseas markets in the form of fully built cars. The operating income of Japan includes also these factors. And the model mix, and also the volume impact, also includes the vehicles -- the impact of the vehicles distributed and sold here in the Japanese market, as well as those exported overseas.

And your second question is related to the deployment of Lexus business in Europe. In my presentation, relating to the European business as one of the factors subtracting from the operating income, I cited expenses relating to our efforts to nurture and [indiscernible] Lexus as the worldwide premium brand. And I also mentioned that those expenses are also generate -- were caused, or generated in Europe.

We are intent on developing Lexus as an important and well-respected, well-accepted brand as well in Europe, as well. We fully recognize that in that regard the European market shows much tougher competition than in other markets. But we are determined to ensure success in this regard, by all means. And for that to happen we must modernize all of our resources, engineering and otherwise, to come up with the vehicles that can really overwhelm our competition in terms of quality, cost, whatnot.

Thank you. Can I ask a follow up?

Yes, please go ahead.

The -- are you saying that the decline in Japanese operating income then was all due to the Japanese market, or was there also an impact on the export portion? Can you discuss that further?

The operating income in Japan includes both the vehicles sold in Japan and also vehicles exported overseas. And the decrease in operating income in Japan includes the impact stemming from both, from Japanese market conditions and exports.

Can you say how much was from which?

In terms of stand-alone operating income here in Japan, I cited that the impact stemming from the sales-related factors was negative JPY10b. And of that the domestic factors -- domestic impact was negative JPY30b, and the overseas factor was positive JPY20b, and net of all the operating income reduction was JPY10b.

Did I answer your question?

Yes, thank you.

Miss Fujii, we have run out of time for questions. So, at this time I would like to turn the conference back over to you for any closing or additional remarks. However, before I do, I would like to apologize for the delay in the start of the call, due to Internet problems. Miss Fujii, please continue.

Thank you. Should you require further information regarding today's conference, or on Toyota, please feel free to contact our IR representatives in London and New York. Their contact details were given at the end of the invitation to this conference call.

Before closing the call I would like to inform you, as a reminder, of Annual Investment Community Presentation scheduled in September this year. Management of Toyota Motor Corporation will visit New York, Frankfurt and London, U.K., to meet institutional investors, analysts, and other people from the investment community. We are pleased that some of you have already signed up to attend, but if you have not received the invitation to the meeting yet, please contact our IR representatives in New York and London.

We are looking forward to meeting you soon. Thank you again for joining us today. Goodbye.

Thank you. That concludes today's conference. Thank you for your participation, and you may now disconnect.