Anadolu Efes Biracilik ve Malt Sanayii AS

IST:AEFES.E

Earnings Call Transcript 2022-Q1

[Asli Demirel, executive]

Ladies and gentlemen, welcome to Anadolu Efes' First Quarter 2022 Financial Results Conference Call and Webcast. My name is Asli Kilic Demirel. I'm the Investor Relations Director of Anadolu Efes. Our presenters today, Mr. Can Caka, the CEO; and Mr. Gökçe Yanasmayan, the CFO. [Operator Instructions] Just to remind you, this conference call is being recorded and the link will be available online.

Before we start, I would kindly request you to refer to our notes in our presentation regarding forward-looking statements.

Now I'm leaving the ground to Mr. Can Caka, Anadolu Efes' CEO. Sir.

[Can Çaka, executive]

Thank you, Asli. Good afternoon to all, and Good morning to -- for those who are joining from U.S. Obviously, this was a phenomenal first quarter. That's -- now let's start with that. I mean, obviously, we had a very solid start to the year despite all the best -- despite all the headwinds that we were facing throughout the quarter. And obviously, before starting everything, we have to mention how sorry we are of what's happening in Ukraine. I mean it's without any explanation -- it is humanitarian crisis in Ukraine, and all what we can hope is for peace to be restored as soon as possible and, hopefully, we could stop, also be helpful in that perspective going forward.

But anyway, life continues, and our core focus today is about the -- our first quarter results. And obviously, what had happened in the region, what had happened in Ukraine has profound impacts, a) onto the region that is going into -- has global impacts in terms of supply chain, in terms of commodity prices, in terms of supply equations. So in that perspective, together -- coinciding together with the end of the COVID and the demand increases in that perspective.

I think it is very important for any other business -- I'm sure you have heard of this throughout the first quarter results calls, that there's an enormous increase in commodity prices for the last couple of quarters, and we've been impacted with that. And that's a part of the headwinds we are facing. But again, despite all these challenges, we had, let's say, a strong set of results. I'm very proud with the agility and the adaptability that we had once again proven. Actually, this has been the case for us for the last couple of years.

And anyway, I mean, let's accept also this, there were some positives. I mean last year this time, we were facing another wave of the COVID. And therefore, there has been COVID, especially in our domestic market in Turkey, and in that perspective, our volumes were impacted. So in that perspective, we had a lower base for this year -- for last year -- so this was a positive. So in that perspective, the other market will be benefiting from the on-trade openings and the lower base of the volumes last year.

And primarily, we have discussed this in our previous discussions, and when we interacted, when we were discussing about the potential impacts of this commodity increases. We were very, let's say, confident in terms of what all we need to fulfill that's our responsibility, that's our discipline in that perspective to transfer the cost to -- into our prices. So we have taken the price increases starting from the fourth quarter last year, which we continue throughout the first quarter and early second quarter as well. And in that perspective, on top of the volume growth that we have delivered throughout the quarter, we have very, very strong top line growth.

And it is -- when you exclude the impact of the currency translation, we're talking about an apple-to-apple basis, so 60% revenue growth on top of the 5% growth. So we are talking about more than 450% pricing. That's pricing, that's revenue growth management, that's packaging, that's discount management, everything included in that perspective. We have also performed very good on that perspective. And that has been also reflected significantly into our EBITDA, and especially on the Beer Group side, and on top of the volume or on top of the revenues, and all the net revenue management initiatives that we have taken, of which we have been very cautious and very prudent in terms of the excess side given the all happenings and all the issues we are facing. And we were able to expand our EBITDA margin very strongly, and that's again a very, very strong result.

And on the cash flow side, I mean, we have seen, overall for Anadolu Efes it's less than last year. The obvious reasons that has been coming from the soft drinks side, the [indiscernible] they have taken -- at least taken the responsibility in terms of increasing the inventories, especially given the price increases, given the opportunity structure. So there is a one-time prudent management in that perspective.

But again, when we look into the Beer Group side, I'm very proud with what we have achieved. We continue to be -- we continue to optimizing our working capital. We were very selective in terms of our capital investments as well. And today with the profitability improvement, we were able to improve our free cash flow versus last year's strong result in that perspective. Although, despite you see the negative versus last year first quarter, I could say this is operational perspective. It's overall for both Beer Group and for soft drinks, it is a positive start to the year.

Let's move to the next slide. And obviously, we talked about the volumes, but let's reiterate that out. On the Anadolu Efes consolidated sales volumes increased by record 14% versus last year in the first quarter. And on the Beer side, consolidated volume growth, excluding Ukraine, where we have stopped our operations system beginning of the happenings later February, let's say, actually, the volume growth was 17% in the first quarter. And when we include the Ukraine, that was 5% growth despite all this fight, and that's strongly supported by Russia and Turkey where we have recorded double-digit volume growth rates.

And on the CIS side, I mean, despite the -- do you remember at the beginning of the year also, we have seen some public unrest in Kazakhstan, which impacted almost throughout the month of January. We were able to grow our volumes by say single-digit levels, so altogether at 5% growth. And in the soft drinks side, both domestic and from international were to resume and intentional operations continued to perform exceptionally that in the first quarter this year as well, with reported growth around 30%. And together with the domestic volume growth around 2%, we have seen soft drinks volumes grow in 18% range.

Going into the next slide, please. Thank you. Little bit more highlights. In Russia, specifically, our volumes were up by mid-teens, and that was mainly driven by the core segment. Actually, that is what we have seen all throughout -- broad -- across the geographies. As you would remember, again, we have discussed from time-to-time our focus on our core mainstream brands, the strength of -- our efforts to strengthen our mainstream brands, and create the relevance to the consumers in their respective markets. And it obviously in times like these challenging times, I mean that's the -- I mean, obviously, inflationary environment causing a lot of concerns among consumer.

And consumers tend to focus more on the brands that create more flow, let's say, relevance to them. They are just staying at the national champion brands, and that's mainly the mainstream brands. So our efforts over the last couple of years in terms of strengthening the mainstream portfolio was very helpful in that perspective. So we have seen this in Russia. We have seen our, let's say, [indiscernible] our core mainstream brand, also growing phenomenally, and we have the other brands on the value side as well.

And also, the other categories that we were again discussing from time-to-time, we were together with the Beer success. We achieved in the beer size. We are expanding our portfolio in every other market, but Russia is taking the lead in that perspective, so non-alcohol segment also supporting the outboarding growth. And that is also supported by the different channels. E-commerce channels start to ship, but they express service deliveries and so forth of the non-alcoholic brand portfolio as well, and which is produced -- which has recorded a strong growth throughout the quarter. And we have continued to -- our efforts to all the categories to expand our [indiscernible]. The fruit beer segment also expanded with the flavors that -- we have also entered the new category lines, the production of the national apple cider. So those are also contributed to our volume growth and we'll continue to deliver in the coming quarters as we expect.

Obviously, that Ukraine, I mentioned, going through a serious crisis, and we have stopped operations since February through 24. So there is not much to say about that. They still, as you know, from -- we are -- basically, our focus is keeping the safety of our people there, to really work with our partners. So that is what we are focusing.

And CIS, again, we have taken the price increases. And despite the price increases that we needed to implement, as we discussed, we were able to grow our volumes by mid-single digits. And that's, again, despite the difficult start of the year in Kazakhstan, more though also together with the expansion into craft segment which is partly growing in the market together with our strength in the main and core -- means regarding core segment, we've been focusing in terms of premiumization. We've been focusing in terms of covering different nations. It's the impact that the craft and premiumization also supported. So those are supporting our volume growth together with the on-trade. Similar Georgia contributed, but higher stock base volumes, and also some mainstream performance in Georgia, that we've been able to mid-high single digit volume growth in Georgia.

And Turkey was the country which had this highest impact of the COVID, especially in the last year first quarter. Therefore, the opening versus last year is also supportive this year, let's say, low base to low comparable for us. So in that perspective, we had strong volume growth, volumes growing 17%. And despite the unfavorable weather conditions in March, becoming even 10 days earlier so starting from the early April.

And yes, some more export volumes also supported Turkey in general. But overall, when we're looking to our export volumes, it's important to mention that basically we were able to have 5% rolling growth on the Beer Group side, that has, let's say, some headwinds in terms of exports, especially China increase in number of COVID cases, implementations in China was our thing, that was necessary, vice versa compared to operating geographies. But again, I mean, as you have seen across the board some volume performance growth in our operations.

A little bit of thoughts about this soft drinks operations as usual, continued the sales volume increase momentum throughout the first quarter, as mentioned. Excluding Uzbekistan, [ organical ] was around 10%, and in that perspective as noted from [indiscernible] operations contributed positive. More importantly, I mean, the Coca-Cola brand grew 15%. Again, as I tried to express on the viewer side, I mean, the relevance of the brands -- like difference in -- these difficulties, clients and deals, you see the Coca-Cola brand has power obviously and also show a stronger growth versus the rest of the portfolio. And both still and sparkling categories also posted double-digit growth. And then [indiscernible] also continued the growth momentum and supported this third category. Water category also grew by 28%. And there we had continued focus on small as of the main thing I would say. And on the promise, channel recovery was supporting the water category.

So specially, Turkey was cycling a 12% growth last year. So that's slightly higher, comparable and growing 2%, and again, recorded a higher sales over for the soft drink operations. That's also backed by the juice and iced tea growth and on-premise recovery and segmented marketing campaigns, I would say. And international operations, Pakistan and Kazakhstan, and also inclusion of Uzbekistan, were the main contributors and exceptional performance. 30% and 70% organic growth was reported throughout the first quarter.

And final remarks before I give the ground to Gökçe for much detailed review of the profitability and financial results. Again, I mean, let's -- let me underline the -- we have achieved 124% growth in terms of the revenues. And when it's the FX neutral basis its 60% and it also was supported by the volume performance as discussed, price adjustments processes that we have taken, and also focus on SQ prioritization, premiumization and also discount and channel management efforts. All this timely adjustments also translated into profitability where we had 474 basis points expansion in EBITDA margin. That's a strong expansion. Despite first quarter is a small cartage, this is a strong expansion.

And obviously, let me underline the impact of the hedging instruments. We were -- I'd say, those hedges that we had throughout 2021, helped us to mitigate certain part of the higher commodity prices and FX selling prices into our cost OpEx base, or out in terms of the margin expansion, and together also our prudent approach in terms of savings and also shifts between quarters helped us in that perspective. Partly, we will be normalized as we will discuss in the guidance discussions. But again, this is a strongest and stock gives us more, let's say, confidence in terms of delivery above the initial expectations, despite all what's happened.

And then the price is successful, especially in operational profitability. When we're looking to the net profitability, we see a negative development versus last year, but it's mainly driven by the -- again, prudent approach in terms of impairment losses with respect to the Ukrainian operations. And obviously, the impairment was related to partly inventories, partly the fiscal assets and receivables, and also the valuation of the businesses, so that's -- the trademarks so forth. So overall, this is TRY 981 million, and the -- excluding this -- the impact of the impairment, net income was around TRY 274 million. In soft drinks side, the improvement on the bottom line was limited, but as a result, that was impacted by the higher financial expenses throughout the quarter.

And again, a few words on the free cash flow. Due to the seasonality, this is the slowest quarter. And when you compare it to last year, it's negative. But again, when I was trying to explain -- that's going to normalize throughout the year. When you look at segment by segment, we are strengthened inventory uploaded on the soft drink side, and that was more positive results on the Beer side with lower working capital despite higher commodity prices.

So let me leave the ground to Gokce for further explanation of [indiscernible].

[Gökçe Yanasmayan, executive]

Thank you, Can. Good morning, and good afternoon to everyone. Welcome to our conference call for first quarter of 2022. You've just listened from Can about Anadolu Efes's strong operational performance and solid financial results for the first quarter. So let me take you through the financial results of Beer Group.

In first quarter, volume grew by 5.4%, and Ukraine has not been operational since February 24. So if you were to exclude Ukraine, we would be looking at a 14.9% growth in Beer Group, remarkable performance in such a challenging environment. Beer Group sales revenue more than doubled and reached TRY 5.1 billion, while FX neutral basis, growth in sales revenue was 39.8%. And note here, in all P&L lines, we see high conversion impact coming from international operations. Changes versus last year are quite high. [ STL ] weakened significantly.

Anyway, revenues growth was thanks to volume performance and price increases that we had started since fourth quarter of 2021 to mitigate cost pressure of the year. Costs are in general, the area that we have been facing strong headwinds mainly because of significantly rising commodity and raw material prices and currency fluctuations since second half of 2021. However, new group gross profit grew by 180.8% to TRY 1.9 billion. This also means an improvement of 940 bps in gross profit margin. Commodity and FX hedges together with price increases and lower stock costs from prior year, helped us offset the impact of cost inflation and even improve the margins. I'll share a few details on the hedges in coming slides.

Again a note that I have to mention, the [ Ministrate ] of Ukraine and Beer Group Financials is also working positively as Ukraine's margins were overall lower compared to the rest of the Beer Group. Strong numbers in EBITDA, both in absolute terms and in margins. EBITDA was close to TRY 0.5 billion with a very nice swing from negative territory of last year to the positive. EBITDA margin improved by more than 1,000 bps, and it was 8.9%. And another note here that I have to tell, we are talking about EBITDA before non-recurring items for 2022. Basically, they don't include impairment losses in our Ukraine operations or any other one-offs, but fully focused on our operational performance.

And also let me give a bit info. Can had mentioned about this, but overall, we booked total impairment losses of TRY 980 million, constituting of inventory receivables, property, plant equipment and cash generating intangible recorded in consolidated financial assets. TRY 414 million of this was recorded above EBIT, and TRY 566 million recorded below EBIT. Net income impact after tax and minority was TRY 405 million to our financials. Basically, we have impaired based on very conservative assumptions. Would there be a change or improvement in commercial landscape of Ukraine, we may reverse some of this amount, especially related to brands.

First quarter, as Can also said, again, is normally a cash negative quarter due to seasonality of our business, and 2022 first quarter is in that sense, unfortunately, not an exception. However, we have seen significant improvement versus last year in free cash flow too, and ended up with minus TRY 106 million.

In the following slide, let me show the EBITDA and free cash flow bridges. All in all, first quarter reflects very strong operational results and a very good growth algorithm, revenues growing more than the cost of goods sold and operating expenses, and the EBITDA bridge evidently shows this trend. As I've just talked about, we see strong growth momentum in revenues, covering the negative impact driven from cost pressures. Additionally, I can say that we keep our focus on OpEx management, thanks to our 0-based budgeting approach. Consequently, we were able to keep increasing OpEx lower than revenue increase in first quarter, which supported bottom line. Overall, very strong growth in EBITDA despite headwinds.

Free cash flow strongly supported by increase in profits and better working capital, mainly driven by Russia operation. As part of our business continuity plans, we also see a positive contribution to our free cash flow from reduced CapEx spending. And in the other lines, we see interest and tax plus TRY 106 million of CCI dividend of 2019, collected only in last year, which is a one-off item of free cash flow of last year. As a result, free cash generation similar to EBITDA is around TRY 0.5 billion better compared to previous year.

On the balance sheet side in the following slide, we continue our prudent approach given the volatile environment, our poses to hold a majority of our cash in hard currencies. And by the end of first quarter, more than 80% of our cash we hold was hard-currency-denominated in Beer Group and 75% in Anadolu Efes. Net debt-to-EBITDA was flattish versus 2021 full year, year-end, and was 1.6x for low FS, and slightly declining for Beer Group from 2.5x to 2.3x.

Let me also remind and update some key figures on Beer Group hedges, which are quite crucial for this year's P&L. From commodities that we can hedge, we have so far hedged 67% of aluminum, 92% of PET and 84% of barley exposure for 2022. Around 1/3 of Beer Group's total COGS and OpEx are FX dominated, and 90% of this comes from Russia, Ukraine and Turkey. And the fix exposure in these countries are almost completely hedged. We can say 91% for Russia and Ukraine and 98% for Turkey.

Basically, it concludes my presentation. I'm giving word back to Can. Thank you.

[Can Çaka, executive]

Gokce, thank you very much. Sorry to reemphasize, but obviously, we had a very tough start to the year with all happenings in the region and on top of the commodity, and FX rates, global inflationary environment that we are currently facing. So -- and at least we stopped the whole store operations in Ukraine. It's necessary for us to incorporate our growth guidance in that perspective. However, as noted as well, results throughout the first quarter also gives us certain confidence for the rest of the year as well. Therefore, apart from the volume guidance, which has been impacted with Ukraine, we're keeping our guidance overall intact. So including the impact of the Ukraine, we now expect our beer volumes to decline by mid-teens on a reported basis.

And while excluding the Ukraine, our volume decline expectations remain at high mid to mid-single digits, let's say, as guided before. And on a consolidated basis, we expect our volumes to grow by low single digits, which was mid-single digits previously at the end of the year. Despite the lost volumes from the Ukrainian operations, our revenue and EBITDA margin guidance stays the same due to the prices and all the proper implementations which we have already incorporated. So, we are in line with our plans and our current expectation is to ensure that we will hit our targets and guidance on the revenue and the EBITDA margin, and a bit profitable to site, I would say. Thank you all.

Now, we'll be happy to answer your questions. I see a few questions already appear. So probably I will ask Asli to -- in terms of probably to read the questions so that everyone on the call can hear the questions that we'll try to -- either me or Gokce will be responding to those.

[Asli Demirel, executive]

Sure, Can. Let me start with the first few questions which are related to the pricing in Russia.

The first one comes. How much have you increased prices in Russia currently in '22? Do you expect having to increase prices further due to further input cost inflation we have seen, and when?

[Can Çaka, executive]

That's a very important question. Obviously, as we discussed, we started our pricing during the fourth quarter. So we have increased our prices through the fourth quarter in the range of 4% to 5%. And then at the beginning of the year, we have increased our prices in the range of 9% I would say. So we're all up -- till the end of first quarter, I would say we have taken 12% pricing already reflected into the first quarter results.

And linking to the second question, do we expect to have further prices -- Yes, obviously, increasing commodity prices is higher than our initial assumptions everywhere across the board. So in that perspective, we need to take further prices, and we have taken another price at the beginning of the second quarter early April. So that is in the range of 20%. But obviously, there would be some, let's say, implementation made for that acceptance to the channels. So that will be coming throughout the year, not immediately in the second quarter. But again, the prices -- price increases that we have taken in the fourth quarter and first quarter actually is covering the cost inflation in now with our expectations that we have taken another price increase.

[Asli Demirel, executive]

Let me continue. Thank you, Can. Do you expect to be able to sell Budweiser near in Russia, if you acquire ABI's non-controlling parts of the JV? What other ABI brands do you expect to be able to sell these in Russia? Are you currently still producing and selling Budweiser beer in Russia? And last one from this person. Have you reopened your brew release in Ukraine?

[Can Çaka, executive]

Let me start with the last one. And still the brewing operations are on hold in Russia. So we haven't still resumed operations, our brewing operations in Ukraine. So that is since February 24 the breweries are not operational. And as discussed, all our focus is in terms of health and safety of our team members in Ukraine. And let's say early, very recently, we have seen some trading activities starting in our business. So we'll see how it would progress, but it is very early to make any judgment yet.

With respect to the relationship JV, I -- with respect to the acquisition of the non-controlling stake from maybe in that, obviously, as -- all I can say is -- but we have started the discussions with the request of our partner. And in that perspective, as we announced the part of this -- it's a part of all the brand portfolio. Discussions is a part of this transaction. So we will be concluding that. Before the conclusion of this, let's say, discussions of the restructuring between the 2 partners of the joint venture. I won't be able to make any statement with respect to any brand. But obviously, the [indiscernible] request from ABI is there with respect to Budweiser brand. So hopefully, this will be impact of the discussions with respect to the transfer of the shares, and we will be able to give much more clarity once it's concluded. So before then, now all what I can say would be speculative. But obviously, it's possible to follow beside from responsibility to make sure we have -- we continue to diverge the -- with rest of the portfolio. All right.

[Asli Demirel, executive]

I want to proceed with very light question. So again, from Russia, I mean how could we consider your beer margins evolving after leave of ABI? Could this lower beer margins versus previous business model due to what you share of premium brands? And then one follow up. How much volume may be most from Russia due to exclusion of ABI brands? Question is from [indiscernible] from JPMorgan.

[Can Çaka, executive]

With respect to the margins, unfortunately, the JV had the lowest margin business in our portfolio. That's a specific -- there are research and peculiarities, there were specifics around the Russian beer market and Ukrainian market. And I was explaining in various calls and various discussions with our investors, with yourselves as well, it's partly related to the pricing in the markets. Obviously, the current inflation in that market is kind of let's say, an opportunity to increase prices. So we have increased prices. Competition increased prices as well. So we are seeing certain margin expansion in this market. So that's reflecting into the overall margin.

So in that perspective, it is the brand portfolio composition, it is people I see, it is the volume. So I'd say it is a little for, let's say, components, I would say. And again, our responsibility is to ensure that deliver the guidance that we have. So overall, I think at this moment, without concluding anything can concrete with respect to any transaction today. For me to make any statement would not be appropriate, but again, our responsibility is to deliver the guidance, and we have given the guidance on the very volatile situations at the end of first quarter. I mean in that perspective, things I mean we have seen a little of moving parts, increasing commodities, so on, so forth. But again, today, seeing the performance, seeing the developments in terms of -- some of them were in parts of the business where again, I would say that we can't though give you a guidance in terms of -- we will be able to deliver what we have foreseen it, the beginning of the year.

[Asli Demirel, executive]

A question -- again, anonymous question, what's the revenue and EBITDA percentage coming from Russia for the Beer Group? Maybe I can give the numbers here. As of end of 2021, Russia's share was around 60% in sales revenues and around 50% in terms of EBITDA. So I'm following up with another question. Could you please provide information on the consumer demand in Turkey and Russia since April? Could you elaborate on the possible effect of elimination of Bud brand from beer portfolio in Russia, which was already answered. On revenue per hectoliter and margins, when will the transaction to the new portfolio be completed? From Ajay [indiscernible].

[Can Çaka, executive]

Again, we are in discussions. That's all what can I say. I cannot make any comment when it can be concluded and how it will be concluded. And as I had mentioned, I mean well, we will be focusing on delivering on our guidance going forward with the -- with what's the conclusion of our everything. With respect to the demand, I mean, let me don't make any commentary especially for April. That's also -- Turkish market will grow along with that April, going down. So we lost consumption months given -- March was heavily impacted with the exceptionally cold weather conditions in Turkey, similarly, and I mean despite the low base actually of last year till February. So unfortunately, it's very, very early to make any confirming statements out of the demand, despite all these price increases which would be throughout the year.

What I can say about what the [indiscernible] we see a very strong quarter return on the demand, on the -- on-trade throughout the first quarter that was, let's say, better than our expectations. This time, higher price points. That's good. But again, for Turkey, we need to see May, June, and that's probably when we are discussing about the single project platforms, we will be able to give you more clarity about the impact of the new price points on the consumer demand. But again, when we take it back to today, when we are reiterating our volume guidance or revenue guidance and everything, we are trying to incorporate all the norms as of today. We don't see any reason to change our guidance with respect to Turkey as well over the first 4 months I would say. So you can take it in that manner.

[Asli Demirel, executive]

2 more questions for you, and I'm going to Gokce for a question related to free cash flow and balance sheet. In Russia, how much of your volumes come from Budweiser sales? And do you expect any negative effects from down trading in '22 or in 2023?

[Gökçe Yanasmayan, executive]

Let's take it this way again. I mentioned at the beginning of the presentation with respect to the down trading. I think, for consumers on the volatile periods when the consumer confidence is impacted, is decreasing, we see the consumers constantly choosing for the most relevant brand for that. So that's supporting for the mainstream core segments across the globe. So we see that, that is -- in that perspective. You may assume that overall, when you look at probably the mainstream growth and shift together with the impact on the consumer disposable income, the affordability probably will -- may see the value segments growing.

Again, I mean, in Russia, specifically, our business relevance or the proportion of the economy segment was lower versus -- the overall market in that perspective is much more the growth of the -- mainstream growth of the lower premium on our side that could be constructed as the kind of the downtrading overall. But again, it is also linked to the overall discount management, and so related to the channel management. And also the price increases overall, I would say what the portfolio would be, current understanding of the beer market, I would say, our expectation is to manage these trends and fall into our guidance. So in that perspective, that is that -- let's say, that's something that we are managing proactively.

[Asli Demirel, executive]

Now a question comes from [ Jeffrey Symmetry ]. Thank you for the presentation. A few questions, please. Could you please outline and quantify key non-operating outflows by the end of the year, like our repayment of 2022 bond payment dividends? And how do you plan to finance these outflows? 2, could you provide a rough estimations of Beer Group EBITDA by countries in 1Q, 2022? 3 EBI hold cash and equivalents were around TRY 500 million. What explains that increase in cash position at EBI level from the end of 2021? And maybe another one, how would we form the EBI stake acquisition on the JV equity or debt? Will we required new money? These questions for Gokce, I guess.

[Gökçe Yanasmayan, executive]

Well, I can briefly talk about these key outflows throughout the rest of the year. 1, and the first one is the dividend payment that we're going to be doing, and we have already declared is around TRY 1.1 billion, which we are going to pay around 20th of May. And yes, we do also have a bond maturing in November 2022. That's also around $180 million worth after our tender last year. This was the remaining part of our previous euro bond. And that also is going to be paid at the maturity. Actually, we have already refinanced all these loans or euro bonds, therefore, the money is there. I think that the question is, given the answer, the money in the ABI actually will be partially used to make all these payments of euro bonds when the time comes.

[Asli Demirel, executive]

Any comment regarding EBI's acquisition?

[Gökçe Yanasmayan, executive]

Well, again, as Can several times mentioned, I mean, this is an ongoing discussion and terms will be known, or will be at least announced as soon as we know them, but clearly, it's too early to say anything.

[Asli Demirel, executive]

As far as I see, we have no more questions that are published here. So Can, would you like to have some closing remarks?

[Can Çaka, executive]

Thank you. Thank you, Asli. Did I miss a question?

[Asli Demirel, executive]

No. Now all questions are answered, so we may close the call.

[Can Çaka, executive]

Okay. I want to just say thank you all for participating.

[Asli Demirel, executive]

Thank you.

[Gökçe Yanasmayan, executive]

Thank you.

[Can Çaka, executive]

Thank you.