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Ladies and gentlemen, welcome to the Aksigorta Fourth Quarter 2021 Conference Call and Webcast. Thank you very much for standing by. [Operator Instructions]
With that, I will now hand you over to your host, Mr. Ugur Gulen, the Aksigorta CFO -- CEO; and Mr. Osman Akkoca, the Aksigorta CFO. Gentlemen, the floor is yours.
Okay. Thank you, [ Viggo ]. Welcome to Aksigorta 2021 quarter 4 earnings call presentation. I'm the CEO of the company, Ugur Gulen; and our company's CFO, Osman Akkoca, will be in your service throughout the presentation. At the end of the presentation, we will be happy to answer your questions and hear your comments.
Please, Osman. I will give the words to you and the presentation.
Thank you, Ugur bey. Let's present our presentation and then afterwards, have the questions from our investors.
Hello, everybody. Welcome to our presentation. And quickly -- I want to quickly go over the presentation and afterwards give a long time for your question. So I'm on the first page, which shows our actual performance versus our guidance. As you all know, in the last 5 years, I can say, because after 2015 there was continuously increasing performance of Aksigorta in both -- in terms of financial performance and also operational performance. And in the last year, in 2021, again we have a very good performance in terms of top line. We have 33% growth in gross written premiums, which our guidance was 15% to 25% growth in the top line.
But on the other hand, unfortunately, and mainly, we will share the reasons on the following pages. In the bottom line, we could not achieve our guidance in terms of net profit, which we guided as 10% to 20% growth at the beginning of the year, but the result was negative versus our guidance. And let us quickly go over the top line performance and then come to the underwriting and the financial income performance afterwards.
So on Page 2 you see the our scorecard for this year, we have almost TRY 7 billion gross written premiums with 33% growth, year-over-year growth, and the net income resulted at TRY 189 million, which is 57% less than prior year result. And the total equity ended at TRY 1.049 billion. And operational ratios or loss ratio, which is the main reason for the decrease in the financial result, net loss ratio increased to 96% with 28% deterioration and mostly in the last quarter. And parallel to the net loss ratio, we have 26 percentage points increase in the combined ratio. You see even there is 28% increase in the net loss ratio, 2% is compensated by commission ratio and expense ratio, which is pure operating KPIs.
And in the market share, as I said at the beginning, we achieved our target and we gained 0.2% market share and we reached 8.5% market share. So we continuously increased our market share with our, let's say, parallel to our long-term strategy. And in the ROE side, mainly driven by the net profit result, our ROE dropped to 17%, that is 24% decrease versus prior year results. And in the financial income side, our assets under management increased to TRY 4.043 billion with 23% year-over-year increase. And in the year, our annualized return yield is 18%, which is mainly, let's say, driven by the last quarter's high return yield. And our financial income realized TRY 861 million with 128% increase.
And on the next page, we have the market gross written premium figures. And I will quickly go over the year-end results. In 2021, the market has 30% growth in terms of gross written premiums, and the market premium volume reached to TRY 79 billion. And looking to the breakdown of the products, you see 43% of the premiums are coming from motor products, 23% from MTPL and 20% from MOD. And in the years in MTPL, there is 12% growth, which is far less than the, let's say, official inflation of 36%. And there is 34% growth in MOD, which is slightly less than the official inflation. So we can say there is real shrinkage in MTPL market and there is almost breakeven growth in MOD market.
And coming to Non-Motor, which is 44% of the total market, in Non-Motor there was 39% growth, which is slightly higher than the official inflation. So we can say there is a positive real growth in Non-Motor side. And in Health side, there is 30% growth, you all know that we told you in our previous, let's say earnings release conference. In Health side, there is a shift from the comprehensive health products, which are, let's say, high premium products to complementary health products, which are less streaming products compared to the other segment, comprehensive health products. So in terms of, let's say, number of policies, there is a real growth in Health side. But in terms of total premium volume, there is negative real growth in Health, with 30%. So overall, 30% market growth is still less than the inflation.
And looking to the distribution channel breakdown, we have 28% growth in agency channel, which is mostly driven by motor products. In bank side, we have 33% growth, which is, again, mostly driven by Non-motor and motor products. And in corporate side, there is 29% growth which is very close to overall market growth and mostly driven by all products, we can say.
And this is the market view. And on the next page, we have the view of Aksigorta. We beat the market growth with 33% growth in 2021. And we gained 0.3% market share. And we generated TRY 6.7 billion, which is, let's say, comparable with the market premium volume. In the market, we have some insurance pools, so when we are calculating our benchmarking with the market, we are, let's say, eliminating those insurance pools. So the comparable volume is TRY 6.7 billion. And then looking to the breakdown of the products, we have 28% growth in MTPL, which we -- all performed the market in this product. And the portfolio share is 28% in our total portfolio for this MTPL.
And in MOD, we have 24% growth in MTPL, which is like the, let's say, less than the market average and still less than official inflation. And you may recall in third quarter -- second quarter's earnings call, we said that there are themes that last increasing inflation in the spare part and also the car values. So we repriced those inflation in our MOD pricing. And accordingly, let's say, in the second half, we, let's say, slowed down in MOD growth. But in the first half, our growth lost rate, slightly higher than the market growth. So overall, we have 21% portfolio share for MOD product and the total motor product portfolio share is 49%.
And in Non-Motor, the most shining performance was in Non-Motor products. We, let's say, beat both the market growth and also the official inflation with the growth in Non-Motor of 46%. And we can -- let's say, we can thank to almost all [ champs ] who contributed to that high growth in Non-Motor products. And in the Health side, we have a 13% growth in the individual segment. we have better performance than the, let's say, group Health segment. So we can say that we have we have slightly shrink in the group Health side other than group Health in the individual and Health side, we have better performance. And for the coming period, we can say that we will focus mostly on the Non-Motor products and the Health products for growth opportunities.
And coming to the distribution channel breakdown, we have 33% growth in Agency channel, which is parallel with the top line growth. We have slightly less growth in Bank channel with 25%, which the performance was accelerated in the second half. But for the year-end results, it is less than the overall growth. And the biggest contribution for that high growth is coming from the Corporate channel, with 35%.
And this was a view of the gross written premium performance of Aksigorta for 2021. And on the next page, we -- at the end of third quarter, so we did not mention any change for our annual guidance because the expectation was parallel to the, let's say, guidance. But at the last quarter, especially, we have several issues. And all of you know that there was a high volatility in terms of, let's say, macroeconomic conditions. So let us total those items one by one.
And for the last quarter, the market expectation for Aksigorta was on, let's say, the margin was TRY 120 million to TRY 150 million. We can say the main of the expectation was around TRY 135 million net profit for the last quarter. And the main issue of the last quarter is the claim cost inflation, especially for MOD and MTPL for motor product. And you see the hit we received from the claim cost inflation is around TRY 382 million, which is, let's say, very, very big. And we can say around TRY 220 million is coming from MOD claim inflation and around TRY 160 million is coming from MTPL claim inflation. Those are for -- let's say, for spare parts inflation. And we observed that year-over-year spare part inflation is 82%. And even we meet some, let's say, reports which are announcing 130%, 140% inflation for the spare parts. So that was a huge inflation in the spare part side, which is far higher than the offshore inflation of 36%.
And also putting aside the inflation in the claim cost side, there was, again, a huge increase in the car value. So car value is important because this is the base for the coming [ shift ]. And we observed that there was around 100%, let's say, increase in the car values in 2021. And then, again, very, very important cost material in MTPL and GTPL. GTPL is general total parts to liability is the minimum wages. There was a huge minimum wage increase at the end of the year. At the beginning of the year, the expectations were between 15% to 20%. And even -- at the end of third quarter, the expectations were around, let's say, 18% to 20%. And during the last year, we heard some 25%, 30%, even at most 40% increases. But the realization was 50%. So comparing to the beginning of the year, there is around 33% more increase in minimum wages. So that cost TRY 250 million in the last quarter on MTPL and GTPL both.
And basically due to those cost increases, there is a result of unexpired risk reserves. This is, let's say, calculation of the increase in loss ratio. So the increase in loss ratio, last but least, TRY 78 million unexpired risk reserve. And that was, again, we mentioned in the previous earnings calls -- there is general conditions changed in MTPL side. Remember that the Constitutional Court canceled the previous general conditions and that the regulators announced the new general conditions in November, which, let's say, a postponement of 1 year almost.
So -- and during that period and also for the current outstanding claim provision, we received TRY 55 million more claims provisioning. So that was the, let's say -- sorry for that. Yes, and -- this is almost TRY 700 million negative impact on our last quarter financial result. And then we compensated some of these losses with higher financial income which is TRY 226 million almost. And the regulator announced a change in outstanding claims reserve, or the discount rate. They increased the discount rate from 9% to 14%. And this brings us TRY 200 million positive impact.
And also, we announced during the year that we are waiting for a regulation change for the provisioning of the claim reserves. So the Medmal reserve update bring us some TRY 43 million positive intake in the last quarter. And we also used the litigation win ratio, which we didn't use in last, since 2016. And we -- this is an option also, available option. So we will use that facility and have a TRY 37 million positive impact. And the discounting of outstanding claims in MTPL and GTPL was obligatory. So we weren't booking discounting for the other branches. So in the last quarter, we booked discounting for the other lines, and this had also TRY 22 million positive impact.
And the tax impact of the above line, so this is the bridge from the market expectation of TRY 135 million net profit to the disclosed net profit negative TRY 42 million. We can directly say that there was a huge impact coming from the claim costs and the minimum wages, which were compensated by higher financial income and the discounting rate change.
And we can pass to the next page. The next page shows our underwriting results. So this is the result of the previous line on the previous page. The last year's underwriting result was TRY 553 million posted. And this year, TRY 319 million negative with a decrease of 158%. So you see the difference between previous years and this year's result is almost [ 870 ] something like that. And the combined ratio increased to 118% from 92% last year. And you see almost all increase is coming from the loss ratio deceleration. So this is the underwriting performance of this year.
And on the next page, we have the financial investment performance. You see at the end of the year, we have 27% of our farm in time deposits, which was 46% at the end of third quarter. So we reduced the share in time deposits. And in the corporate bond side, again, we slightly reduced our portfolio share down to 30% from 32% prior quarter. And we increased our, let's say, portfolio share in euro bonds. At the beginning of the last quarter, our fixed loan position was around $30 million. And at the end of last quarter, we have almost $80 million, $85 million loan position. So we increased our position in the foreign currency and mainly invested in euro bonds.
And also, we increased our position in government bond side. We were holding some 9% of total portfolio at the third quarter. And at the last quarter, we have 17% in treasury bonds. And almost we can say 5% is, let's say, CPI-linked bonds, out of that 17%. And we reduced also in the equity side, so we realized some capital gains in the last quarter.
And the total AuM reached to TRY 4.043 billion. And the last quarter's return yield was 26%, far higher than the previous quarter's, mainly due to, let's say, FX gains. And also capital gains in both government bonds and in equity side, and also our renewals in the deposits and the corporate bonds were higher, let's say, invested in higher rate bonds. And the quarterly financial income is TRY 420 million, which is far better than the previous quarters.
And on the next page, we have the P&L view. And this is -- we have restated in the previous year's financial statement, basically due to those discounting and the litigation, so these income statements are comparable. And you see our top line is almost TRY 7 billion. This figure is including the full premiums also. And you see we have, let's say, worse result in underwriting results line, which shrinked by 158% versus prior year. And we have better result in financial income side, which is 128% better than the prior year. So this is the income statement view.
And on the next page, we have the balance sheet. We increased our assets under management by 23%. And the total assets increased 32%, which is parallel to top line growth. And asset under management is slightly less than the top line growth. During the year, we paid out TRY 306 million dividend. And also the increasing claims in the last quarter, let's say, limited the growth in the asset under management. And our ROE resulted 17%, which is let's say, far less than the previous year's 41%.
And on the next page, we have the bridge between our IFRS and the TFRS result. In the TFRS side, our net profit is TRY 189 million. And in the IFRS side, we have TRY 327 million. In IFRS side, we were not applying the discounting of standing claims until this year. And this year, I can say that -- in 2023, we will shift to IFRS 17 from IFRS 4. So this is a, let's say, transition period in IFRS 17, the cash flow of all products will be considered and the cash flow will be booked. So accordingly, the cash flow contains or includes the discounting of outstanding claims. So we applied the outstanding claims starting from this year. And for 2020, we will continue to discount the outstanding claims both in TFRS books and also IFRS books.
And on the next page, we have the risks and opportunities. I can highlight the main 3, 4 risks. Our underwriting margin is decreasing, mainly due to the claim cost inflation. As I said, we have almost 80% claim cost inflation, whereas the official inflation reached 43% at the end of January. And the negative real interest rate limit to financial income. Basically, we told you in the previous calls that changing interest rates doesn't, let's say, result any change in our -- some revenue or some profit because we have 2 income sources: one is the financial income, and second is the insurance income.
So low interest rates condition, we have financial income -- sorry, less financial income, higher insurance income. And in high interest rate conditions, we have higher financial income, less insurance income. But looking for a long-term period, our net income increases by top line increase, but the combination change according to the macro indicators.
So for 2021, the main problem is negative real interest rates. And the downsizing economy limits insurance growth that can be a risk. And the last but not least, this is a risk for all, let's say, markets, the uncertainty and high volatility on both currently and also the other macro indicators. And in the opportunity side, we can tell accelerating digital transformation and the increasing efficiency, this could be the opportunities.
On the next page, we have the comparison of the income combination. In the last year, we have TRY 553 million underwriting result, the insurance result was very high. And the financial income, TRY 378 million, which was less than the financial. And in this year, we have negative results in underwriting insurance, which is TRY 319 million. But we couldn't fully compensate the loss by the financial side, even the increased, let's say, higher than 100%, our financial income, we could not compensate fully. And we have TRY 861 million financial income.
And on the next page, we have long-term ambitions. We keep our, let's say, target for ROE to keep higher than 30%, net combined ratio down to 95% and our market share ambition is 10%.
And that's all from our side, and we are ready for your questions. We will be glad to answer your questions. Thank you.
Thank you, Osman.
[Operator Instructions] We've got one from a gentleman by the name of, I believe it's Murat. Yes, please go ahead, sir, with your question.
Hi, everyone. This is Murat from HSBC. I also ask this question to -- I also got here yesterday, but given the sharp depreciation and increasing -- more than expected increase in MOD and MTPL claims, you have consequently raised for the prices significantly, I suppose. But this comes with a delay. So when we are assuming dollar rate remains around TRY 13.5, as it is, when do you think the negative spreads will be completely depleted and you're going to be "correctly pricing" current increase in the spare parts and auto prices?
And secondly, you've recorded a gain from the medical malpractice around TRY 42 million, I suppose. But I guess there should be more to come. When we expect to register additional income from this item?
Osman, if you want I can answer the first question and give the second one to you. First of all, let me start, in 2022 we have 2 different portfolios. One is the in-force portfolio. The portfolio is coming from prior year, which is 2021. And the new business written in this year, 2022. In the new business part, I will start with the new business part. On the MOD side, of course, it's not easy to foresee what may happen in 2022 in Turkey. The existing insane macroeconomic politics, how long do these same policies may last is another question.
But according to our estimation and assumptions using our clarification, we have written MOD policies with a positive underwriting margin starting from the 1st of January, 2022. On the other hand, on the MTPL side, as you know, there is a price cap. And starting from 1st of February, those prices are increased by 20% with a onetime increase done by the regulator. But still there is a 20% increase in the cap prices.
On the MTPL side, the new written business are still negative underwriting margins. So on the MOD side, new business we are writing with the positive margins. And on the MTPL side, underwriting margins are still negative even though there is a 20% increase. So on the MTPL and MOD, we are much more selective comparing to prior years. And we are trying to increase our underwriting margin in MOD and trying to decrease our underwriting losses on MTPL. This is main business issue.
If -- but as we rightly mentioned, there is an in-force in the books coming from prior yes. And the in-force book we will have some underwriting losses throughout the year because the in-force book was priced with different inflation and different FX rate figures. So on your question when will you, let's say, breakeven -- reach break even. On the new business side, we will go positive. But on the in-force side, according to our calculation, there will be some underwriting losses throughout the year.
Of course, all I said is depends on the conditions or macroeconomical conditions. If the existing conditions continue, we will be keeping the FX rates under 40. And with the existing inflation expectation, we can start to make some positive underwriting results on the third quarter of 2022, I would say. But I have to underline, the market is not foreseeable, as you know better than me. This is all based on the assumptions that we are using in our writing and clarification.
Osman, maybe you can answer the Medmal issue where there is a TRY 47 million. But we expect more releases, when to come to those releases. Is there any more releases which you could comment on it?
Yes, we talked several times in our previous call that there will be a release in Medmal, and our expectation was around TRY 70 million to TRY 80 million. And in the last quarter, we have TRY 75 million released in Medmal. But again, in the quarter, the claims also increased more than our, let's say, forecasted level, which is TRY 32 million. Because the pool management recognized that they did not fully booked and fully allocated to the company. So they, let's say, mixed that problem in their systems. And our outstanding suddenly increased by TRY 32 million, TRY 33 million. And then we released that TRY 75 million. So the net impact on the quarter is TRY 42 million, TRY 43 million.
And for the coming period, I can say that the loss ratio in that product even reached to 700%. So we are losing TRY 600 per TRY 100 premium. So this is very a huge loss-making product. And after that release option, we can say that we will see clearly the net result of the loss ratio in the coming months, we can say that the loss ratio should improve to 250%, 300% something like that.
So our expectation from the regulatory is that medical malpractice is a liability product, and this is the full tariff by the regulator. So there will be a price, let's say, realization -- rationalization in that product with at least 100%, 150% increase in the pricing of that product. So there is no more 700% loss ratio, but still loss-making, and there will be no that much release in medical malpractice.
So this 250% ratio is going to come down to commercial 100% over the next quarters or not?
We can say that there will be a, let's say, negative result in medical malpractice. But this not -- this will not hurt our financial results, because 700% means we have around TRY 6 million to TRY 7 million net earned premiums in that product. So 700% means TRY 30 million, TRY 35 million loss per annum. But now it will be, let's say, not material in the total income model.
So moving forward on a sustainable basis, this will be improving your underwriting results slightly?
Of course, of course, of course. Year-over-year, that will have a positive impact year-over-year.
Okay. One final question maybe. The table you showed about the divergence of expectations between the actual results. Over there, we know that the claims are cash items, and financial gave us partly -- probably the cash items, but not some of them are revaluations. But let's say, all of them are cash. About the other items -- among the other items, which are cash? For example, this provision release is not a cash item about malpractice, right? So which of them are cash items and which of them are not yet? Can you go a little bit, please?
Yes. Then could you please move to that slide, which is Page #5. So on Page #5, I can say that the claim cost inflation is almost all cash items. Our cash outflow increased that much in the last quarter. And the minimum wage increase is a noncash item. Unexpired risk reserve is a noncash item. Change in general conditions is a noncash item. Higher financial income is a cash item. And the rest is, again, noncash, change in outstanding claim reserves, discount rate, medical malpractice, litigation, all are noncash. So there are 2 cash items, which is claim cost inflation and the higher financial income.
So that's a very good question. So we are, let's say TRY 150 million, TRY 160 million short in terms of cash flow. So what I'm trying to show -- yes, of course, of course.
Particularly the minimum wage impact is a very large noncash item. So even adjusting for that, you would have recorded a positive net income actually? We can say that minimum increase was in line with the headline inflation, for example, or 6%, it would be above the...
Yes. Each 1% accounts for TRY 8 million -- accounts for TRY 1 million -- TRY 8 million, sorry.
TRY 8 million in net profit?
Yes.
Any other questions or can we move to the audio written questions, gentlemen? I believe that's it for the audio question. So I see there are some written questions. So if you would like to move to those.
Maybe -- I can, yes. Are there any guidance for 2023, Osman? Probably your answer will be no.
No, because the volatility is so high. So under these macro conditions, we could not guide for 2023.
Yes. Even I think we cannot guide Q1 of 2023 as well, not even.
There's another question, the commission ratio dropped from 15% to 13%, is there any specific things?
Most probably the contribution of bank is -- would be dropped -- decreased. Yes, that would be the...
Yes. The least growth was in bank channel. Yes, the channel mix is the first reason. And the second reason, during the COVID period, there was less hospital visits. So there was, let's say, a positive result in the Health business. And let's say, we called back some of those underwriting results as a commission income in this year. So that also improved our commission ratio. We received additional commission in the Health business.
Okay. Another question. How much buffer does Aksigorta over required capital?
So is asking the capital adequacy ratio, do we have any buffer over required capital?
No, unfortunately. In the regulatory phase, insurance companies have to calculate the required capital and compare with the available capital. So as we disclosed at the footnote, at the end of the year, our required capital is less than available capital, unfortunately, basically due to those volatilities.
And again, before the event, the regulators announced a new communique, which is setting the rule that the company who are holding medical results less than 135% could not pay out dividends in 2022. So according to that rule, we cannot pay out dividends in this year.
So you answered the second question for 2021 and 2022. Dividends from 2021 is not possible due to the lack of capital and the lack of capital adequacy ratio. That was the question anybody that asks for you...
This is really...
I don't know. We haven't discussed any share buyback plan. But really this in the agenda of the company currently. What would I say? This business has 2 different kinds of income sources. One of it is the underwriting income, the other is the financial income. Under normal conditions, if you see, both are positive, which is high financial income and high underwriting income, that would be the best year for the non-life companies.
Under normal conditions, if there is a decrease in the underwriting margins, underwriting income, financing income is compensating that decrease, or vice versa. Unfortunately, this time, starting from November, both are going down. In my non-life carriers, first time I have seen such activity in deficit period. As you know, there is a super, super high negative real interest on our assets. The claims inflation is higher than the producers' inflation.
One of the reasons, spare parts are increasing FX increase on top of it, due to the increase in the prices of metals all over the world. There was spare parts inflation in FX terms. And due to the unbelievably high logistic costs, so there is a 20% increase in the spare parts in FX terms. On top of it, TL depreciation, TL devaluation. So really the claim inflation is higher than the producers' inflation in Turkey currently.
So on the other hand, we are not able to -- the gap between producer's inflation and the financial income, is super, super high, maybe 50% to 60% level. So that creates some deficits for the company. But what we believe is that the existing whatever call unorthodox heterodox or in say macroeconomic politics, may not last forever. In some ways, we are going to see a turnaround.
So on that time, we will grow our normal track in terms of underwriting margins and the financial income. But 2022, that will be a year to put a correction for improvements, let's say claims coming from our, let's say, in [indiscernible] coming from 2021. What we believe currently is the company has been managed very well to improve all these. And thanks to our high digital capabilities and thanks to our lower G&A ratio, Aksigorta will be, I think, one of the best companies at the end of 2022 when compared with the non-life industry in Turkey.
So Osman, we have come to the end of the switching question.
We have received one more or question from [indiscernible].
Do you plan capital rights issue?
Definitely. According to the existing regulation, if you announce a capital adequacy ratio of less than 100%, you have to prepare and submit an action plan or a plan consisting of measures to increase capital to the regulators. And you should increase the capital adequacy ratio the following 12 months according to the existing regulation. So most probably, we are going to prepare an action plan to increase our capital.
Of course, this plan include many things. One of the options, of course, to increase the capital. But other than that, of course, playing with product mix and many other items which consumes capital will be reduced to improve the capital adequacy ratio of the company. Maybe Osman, you may add more.
Yes, for let's say, eliminating a misunderstanding, our priority is increase the available capital by organic ways. So an injection -- yes, yes, capital injection could be in the list, but in -- at the bottom, we can say. So of course, we will try to improve our capital adequacy results by organic ways, I mean as Ugur bey listed by, let's say investing in less risky assets. I mean, the composition of the assets under management, the composition of all the portfolio mix, changing the composition of the portfolio. And by generating value, I mean net profit by issuing some net profit.
So we will have a plan, including the organic action. And if that will not be enough for the legal threshold, then in the last, there are some other, let's say, options also, which can be a capital issue. But first, we will try to improve our capital adequacy by organic way.
Definitely. Of course, there are other options also Osman. The inflation accounting is still starting in 2023. And the IFRS 17 transition will help us to improve capital in an organic way. I'm sure we are going to handle that issue in the actions taken throughout the year.
And also last, we see that there will be not a payout -- dividend payout. So it will also, let's say, not reduce available capital. So that will also -- some other actions.
Thank you. I think there is no written questions, Ugur bey.
All right. So ladies and gentlemen, Mr. Ugur Gulen, the Aksigorta CEO; and Mr. Osman Akkoca, Aksigorta CFO. Gentlemen, any final thoughts or maybe conclude.
Okay. I think we answered all the questions. Thank you for your participation. We are looking forward to see you at the end of first quarter 2022 earnings call presentation. Until then, I wish you a happy and healthy days. Thank you very much.
Thank you, gentlemen.
Thank you for participating. Thank you, and we would like to welcome you better results in the coming quarters. Thank you.
Thank you, gentlemen. And ladies and gentlemen, this concludes today's webcast call. Thank you so much for your participation. You may disconnect now.