Prosegur Cash SA

MAD:CASH

Earnings Call Transcript 2021-Q3

[Operator]

Ladies and gentlemen, thank you for standing by, and welcome to the Prosegur Cash Third Quarter 2021 Results Presentation Conference Call. [Operator Instructions] I must advise you that this conference is being recorded today.I would now like to hand the conference over to your speaker today, Miguel Bandres, Head of IR. Please go ahead, Miguel.

[Miguel Bandres;Head of Investor Relations]

Thank you. On behalf of the Prosegur Cash team, I'd like to welcome you to our 2021 third quarter results review that will be led by our CFO, Javier Hergueta and myself. We estimate it will last around 25 minutes. And during this time, we will try to address the main events that taken place in the quarter and that are driving our performance.At the end of the call, we'll open the floor for a Q&A session, where we will try to address all the questions you might have. Should we not get to respond all points today, we'll be pleased to answer those remaining on an individual basis with each of you. I wish to thank you all for your attendance and remind you that this presentation has been prerecorded and is available via webcast on our corporate web page.Now before turning the call over to Javier, let me comment some relevant news regarding Cash during the quarter that range from how it is considered by society, how important its role is in assuring economic activity despite technical breakdowns or how crucial it is in bringing stability and credibility to their financial system.First, I'd like to share the view of almost 90% of Spaniards that believe Cash payments should be warranted. GAD3, a highly reputed polling company revealed in a survey carried out in September 2021 by -- for [ Denaria ], Cash defense platform, that the defense of cash is something transverse on Spain society. 95% of Spaniards perceived cash has been very important, a figure much higher than that of other payment methods. It's considered essential for the most vulnerable groups in society and 83% of the population totally opposes the acceptance of only card payments.Second, the ever harsher and more frequent network crashes of major digital platforms stress the importance of protecting the mix of payment systems. [ Survimedia ], Spanish media agency showed the vulnerability of the system and the dependence of excessive digitization to such failures. Several incidents in the past months, such as messaging networks and systems crashes, like in June PayPal, Amazon, Twitch or Financial Time [indiscernible] or the fire in a data storage center in July, affecting multiple operations in different continents, underlying the unreliability of the system in terms of business and economic continuity.Third, and on a different note, the U.S. senator from former Wyoming Treasurer, Cynthia Lummis warrants that stable clients should be backed by cash. U.S. Senator Lummis said stable currency reserves should be 100% backed by cash and cash equivalents and banks or money market funds should become issuers.Lastly, I'd like to mention that cash in circulation increased in the Eurozone in the first year of the pandemic. The increase in precautionary demand for cash more than offset the decline in transactional demand stressing the relevance Cash has in the trust of all the economic agents. At the beginning of the pandemic, fears about the role of cash in the transmission of COVID-19, will actually excuse as a means of payment. However, an ECB study subsequently confirmed that it's safe to use cash despite COVID-19.Moving forward, today's agenda is as follows. We will start reviewing the highlights of the period. Then we will discuss our performance and the dynamics in the different regions where we operate, after we'll follow with a summary of our financials. And last, we will conclude underlying some key takeaways and will, of course, respond to the questions that might have arisen during the webcast.I'll now turn the call over to Javier, who will review the key highlights in the quarter.

[Javier Hergueta Vázquez, Chief Financial Officer]

Thank you, Miguel, and good morning to everyone. In today's Q3 results presentation, I would like to underline the constant and steady improvement in our main indicators, as we had foreseen in our previous calls, and that show a very positive trend in our performance.Regarding activity recovery, after having lockdowns in Q1 across several countries and Q2 recovery signs, Q3 recovery is being confirmed across all geographies, say, for Asia-Pacific, whose less lockdowns in Melbourne and Sydney have been released in October. In relation to sales and margin come back, the activity recovery mentioned before is showing our figures, both at sales and margin levels.Sales have climbed 12% quarter-on-quarter, while EBITDA has increased in the same period by a very remarkable 40%, meaning 250 basis points in margin, and thus, underlining the importance and impact of the economic recovery, our sales efforts and as well efficiency plans. This improvement implies almost doubling last year's quarter-on-quarter underlying EBITDA's enhancement and is the highest Q3 versus Q2 increase in the last 5 years.When it comes to transformation progress, relentless new product growth, plus 15% quarter-on-quarter is overtaking the overall good plus 12% sales performance and driving new product share over total sales at a solid 21%, increasing penetration in 50 basis points versus the previous quarter and proving the commitment we have as a company to transforming our business model.In relation to financial discipline, free cash flow generation reached EUR 37 million in the quarter, a healthy plus 42% improvement on Q2. This discipline has been recognized by S&P whose BBB and a stable outlook grade rating we have renewed. Also to remark our commitment to corporate governance, I would as well want to stress out our commitment. And in this line, we are very proud of having been distinguished with AENOR'S G++ highest mark.In this slide, I would like to share some very relevant points regarding our current performance, but most importantly, underlying an important setting for the future. Firstly, we see that in all of our footprint, hard lockdowns are coming to an end. Both LatAm and Europe have seen as pandemic numbers have been reduced that hard measures ended. And in fact, the last major confinements in the Asia-Pacific region were eased throughout October. At the same time, COVID-related restrictions in terms of opening hours, restaurants and nightlife affluence limitation or major concentrations such as major sporting events are being increasingly softened. While the above is happening, there is a growing underlying inflationary trend in quite all regions. Such a dynamic is positive for our business as it increases the amount and velocity of cash in circulation.Lastly, though COVID has taken an evident toll in GDP expectations narrowing, the above-mentioned openings are speeding up growth and such an inertia is narrowing the expected gap versus pre-pandemic growth projections according to the OECD.In this slide, we have 2 different charts showing on a year-to-date basis the evolution of both our local growth and our performance in terms of profitability. The top graph shows that our top line growth in constant currency terms in Q3 has continued the pattern set in Q2, confirming a positive trend in line with the increased economic activity in most of our footprint.We can see the cumulative growth year-to-date accelerating to 4.5% in the 9 months in 2021, well above the already positive cumulative growth of 3.1% experienced in the first half of the year.By geographies, I would like to note the change quarter-on-quarter this year. The acceleration is notable in Latin America, improving its overall sales in euro terms in Q3 by 14% versus Q2, while in Europe, the improvement is also remarkable, reaching a 13% increase quarter-on-quarter.Asia-Pacific, still impacted by the above-mentioned restrictions in the quarter, shows a quarter-on-quarter descend in euros of minus 8%. In the lower graph, it's very important to stress the solid performance of underlying margins that improved plus 100 basis points versus first half, showing as said both the improvement of economic activity and the delivery of our sales growth and efficiency programs.I would as well like to remark as in the prior page that framing this performance improvement into the future, it takes place in an environment that seems positive with continuously using restraints, projected economic growth and is entering the higher consumption and rising inflation. This is clearly a point that [ Marie Suspension ] mention, transformation. As you know, this is a key pillar to our future strategy. And in the quarter, we have seen it experience a solid growth.If we look at year-to-date figures, the increase versus last year is up to 11%, which climbs up to 15% if we look at the performance in Q3 versus the previous Q2. When we look at the share of new products over total sales, their share increased by a remarkable 315 basis points versus 9 months on the previous year and by 50 basis points versus Q2 in 2021. All this improvement is despite Q1's AVOS divestment. If we isolate such event, then year-on-year growth would be 28% and close to 500 basis points increase in terms of penetration.Important as well to note that we keep on firm in our commitment to invest in digital transformation that we deem is and will prepare us best for the future. In this front, we have invested EUR 16 million year-to-date, an increase of 36% versus last year. As economies keep on opening, we are confident our new products will keep on posting solid growth as customers are more and more willing to buy into them.I would like to turn over to Miguel so he can share the key aspects of each of our regions.

[Miguel Bandres;Head of Investor Relations]

Thank you, Javier. In Latin America, the region that accounts for 65% of total sales and with a continuously improving restriction situation, we see that after a Q2 over Q1 growth in euro terms of 4%, this trend has accelerated to over 14% in Q3 over Q2.On a year-to-date basis, sales amount to EUR 708 million, a 5% descend on 2020. It's important, however, to break down this figure that includes an improvement in organic terms that reached 6.6%, inorganic growth by 3% and the still lagging currency that has a negative impact of close to 15%. Special attention must be paid to a transformation line, where we see the new products in the quarter have reached EUR 64 million, growing by [Technical Difficulty] and considering due to these figures, they totaled EUR 164 million, growing by over 28% versus 2020.Such a new product growth implies that their share over total sales has climbed by 510 basis points from 17.1% to 2021's 23.2%, reflecting both the push of our strategic AVOS investment as well as the delivery of our organic sales strategy.If we turn to Europe, we continue to see a positive sales trend quarter-on-quarter when factoring out the AVOS divestment. Last quarter showed a remarkable 16% organic growth versus the same period 1 year ago, explained by the reopening of some markets late in the quarter. This Q3 has shown that consumption has continued its gradual recovery and sales versus Q2 climbed by 13.5% to EUR 104 million in the July-September period. When comparing the isolated Q3 versus 2020, we as well see an organic recovery of plus 1.6%.In year-to-date terms, sales totaled EUR 294 million, narrowing to minus 8.8%, the GAAP versus 2020 when almost all Q1 was lockdown free and where AVOS was still being consolidated. Ex-AVOS divestment, the drop is a mere minus 1.1%, down from minus 2.5% 3 months ago, so the catch-up continues.New products year-to-date for the region reached EUR 53 million, implying a 16.9% growth year-on-year ex-AVOS. With this growth, their share over total sales reached 17.9% of total revenue. The penetration ex-AVOS increased by a significant plus 210 basis points.When reviewing the performance of our Asia-Pacific region, we have to bear into account that it has suffered still strong restrictions in the quarter due to its vaccination and pandemic control policies. Still 2 major areas, Sydney and Melbourne were under lockdowns at the end of Q3. We must note that both have been lifted during October. Despite above-mentioned, year-to-date figures versus 2020 show a 12% increase and reached EUR 80 million, being half of that growth organic driven and with M&A accounting for 4.5%.On an isolated quarter basis, sales summed EUR 25 million, an 8% decline over Q2 this year, driven by the aforementioned restrictions. New products year-to-date amounted to EUR 14 million, which is a 74% increase on last year. And in the isolated quarter versus Q1 2021 have barely descend by 2% in the mentioned restricted environment.In terms of new product share of total sales climbed to 17.8%, a substantial 640 basis points, 640 basis points improvement on 2020. These are the key events regarding our regional behavior.Thank you now and I'll hand it over to Javier, who will summarize the financials.

[Javier Hergueta Vázquez, Chief Financial Officer]

Thank you, Miguel. On the financial side, we see continuous improvement, both in absolute and relative terms, resulting both from the economic activity improvement and the commercial and efficiency measures in place. Starting with the revenue line. Total sales reached EUR 1,082 million, 5% less than in the same period of 2020, meaning we are closing the gap versus prior quarters, that gap being 10.3% at the end of June. This figure results of organic growth that is now climbing up to 4.4% in organic that reaches a positive 0.1% and a lessening negative FX impact of minus 9.5%.When we compare these figures versus June year-to-date results, we improved in each line versus back then when we had organic 3.5%, inorganic of minus 0.4% and currency depreciation of minus 13.3%, respectively. On a comparison versus 2020, the improvement in Q3 stand-alone in euro terms is of plus 5.9%.On the margin side, reported EBITDA reached EUR 141 million, representing 13% of sales. This implies a 140 basis points relative improvement versus 2020 and a 6.3% growth in the prior year. The underlying EBITDA margin for the first 9 months figure that excludes the capital gains derived from divestments and the 2020 efficiency plans investments resulted in EUR 121 million, reaching 11.2% of sales, implying a 40% improvement quarter-on-quarter up to EUR 50 million EBITDA, an improvement of 250 basis points quarter-on-quarter in terms of relative margin.This performance metric still impacted by the comparable base, the different mix of services and the currency headwinds versus 2020 continues to improve constantly and narrowing the gap versus 2020. Below EBITDA financial results reached net cost of EUR 34 million as the lower FX gains have more than offset the lower interest expenses. Our effective tax rate for the period is the result of a worse fiscal mix and higher corporate taxes in several geographies. Bottom line, net consolidated profit reached EUR 40 million, EUR 9.4 million in the quarter, representing 3.7% over sales.Regarding cash generation, our free cash flow reached EUR 102 million thanks to a remarkable EUR 37 million generation in the quarter. This rate implies that our implied free cash flow yield is at a very attractive 8% considering our last 12 months' free cash flow and our current enterprise value.The year-on-year variation of the provisions and other items captioned is mainly explained by both the benefits from the tax cover deferrals and the provisions related to the restructuring programs fading away. CapEx of EUR 13 million in the quarter remains contained in line with the CapEx control measures in place and implies a CapEx reduction of 8% versus 9 months 2020, down to EUR 42 million.Working capital variation quarter-on-quarter amounts to EUR 6 million, keeping maximum focus on the active working capital management in the context of rising sales. Below the free cash flow line, M&A payments resulted in minus EUR 10 million and was the combination of cash outflows from deferred payments, payments related to the new M&A and proceeds received from the AVOS disposal.Lastly, the dividend on the treasury stock line incorporate the payment of the first 3 installments of our dividend in January, April and July and the share buyback program that was in place up to the beginning of Q3. All in all, we continue prioritizing our cash flow generation, which remains strong and solid along the period. If we review now our total net debt, which, on top of our net financial position, includes the deferred payments coming from former acquisitions, our treasury stock and the IFRS 16-related debt, it has increased by EUR 31 million in the quarter, mainly due to treasury stock amortization.As of September 2021, total net debt amounted to EUR 711 million, representing a EUR 4 million reduction when we compare to a year ago and already incorporating the aforementioned buyback program amortization. Our leverage ratio remained stable versus 2020 and at 2.5x.Relevant to note that our debt maturity profile has not undergone any significant change, and therefore, we do not have any major refinancing needs until 2026. It is important as well to highlight that we have been confirmed S&P's BBB rating with stable outlook that backs our financial discipline measures and recognizes its health.In this last slide, I would like to share with you my summary of the third quarter that can be noted in the following points. First, and once again, the very important proven resilience of our business model with organic growth recovering in those regions where consumption has been allowed to flow back.Sales year-on-year growth in local terms have accelerated up to 4% as said resilience of the business as economic activity reactivates. Important to note as well that inflation is rising across the board, which will create a positive context for further future growth in our business. To add to the continued reopening of economies, we have to underline the efforts of our commercial teams in driving new business for our company.Second, and as well helping promote the top line is the continued delivery of the new products line, helping drive our transformation effort. As we can see, new products in the period year-to-date have grown by 11% compared to last year, gaining 310 basis points of share of total revenue. This point shows the delivery of our innovative solutions and the good reception they are having by our customers, both existing and the ones that are joining our client base as a result of adopting new solutions.Next, thirdly, I would like to mention the performance of our profitability margins. The positive trend experienced in Q2 versus Q1 with the underlying EBITDA improving by 50 basis points, has been expanded in Q3 up to 250 basis points, reaching EUR 50 million, that is a noteworthy 40% improvement over the prior quarter. This figure shows the effort not only on the top line, but as well the results of the multiple efficiency programs underway.Also to highlight the result of our financial discipline as we have been able to generate EUR 37 million free cash flow in the quarter and EUR 102 million year-to-date and maintain our net debt flat while amortizing treasury stock. Such a behavior has been recognized by S&P renewing our BBB with a stable outlook rating.And lastly, I would like to stress the importance we pay to corporate governance. Our commitment to government-related initiatives has allowed us to be recognized with the highest G++ level from AENOR.Thank you all for the attention, and we will now be pleased to begin with the Q&A session.

[Operator]

[Operator Instructions] First question comes from the line of Enrique Yaguez from Bestinver Securities.

[Enrique Yáguez Avilés, Senior Analyst]

I have 3 of them. First of all, I would like to have some feedback about what kind of organic recovery do you foresee in this fourth quarter, taking into account the gradual reopening of the economy, especially in the Asia-Pacific region. Secondly, if you could provide more details about the tax rate increases seen in Q2 and in the third quarter, when do you expect to normalize and at which levels do you expect to normalize this tax rate? And finally, regarding the cash today initiative, I don't know if you could provide some visibility about what kind of growth do you foresee in the number of installed devices after the reopening of the activity? And how is the joint venture with Santander working?

[Javier Hergueta Vázquez, Chief Financial Officer]

We'll take the 3 questions one by one. On the first one, on the organic recovery, I must say that we've been recovering organically on a sequential basis since the beginning of the year, and that's still the case that we are seeing that month-by-month happening in the business. Of course, beyond the exception of Australia with a lockdowns in Q3, but the general trend is for a sustained recovery month-over-month. In fact, I would say that we are seeing, if you compare to 2019 figures, I mean, we're seeing that in Latin America we are over -- on a local currency basis, we are over 2019 figures on a run rate right now.In Asia-Pacific, we are around that figure despite the lockdowns, thanks to the commercial efforts that we've been undertaking. And in Europe, despite the hard lockdown that has been suffered in 2021 in the first part of the year, we are getting closer to that and up to 90% of the 2019 figures. So that's what we are seeing so far, and we expect that recovery trend to continue in Q4.In the case of Asia-Pacific that you were mentioning before, of course, the reopening should be helping us, and we are starting to see it already now that Sydney and Melbourne, for instance, have been eased during the month of October. So in the last weeks, we are starting to see that recovery happening. And we expect that that trend will continue going forward in all the geographies in Q4.Secondly, in relation to the tax rate, I would say that the increase is due to a worse mix, meaning that those countries with lower interest rates are still on the improving curve and therefore, are weighting less into the total mix. And there's an increase in the tax rate in several jurisdictions. Part of this is really a one-off item. I must say, for instance, the recent increase in tax rate in Argentina implies that we have to reevaluate some of the items in our balance sheet, which is a one-off impact that should be diluted and will not happen anymore any further in the figure.And on the other hand, I would say that the improvement expected in our results should naturally reduce the rate itself because European countries generally have lower tax rates, and those are on a clear improvement trend right now and should be gaining weight into the results and also the same happens with the case of AOA, I mean, where we should be reducing the losses in Australia gradually up to the breakeven at some point in time. So that should naturally reduce the tax rate itself.And on the third question around the cash today, we are seeing, again, the good signals of recovery on the reopening. So the retail sector is pretty much more active right now. So we are seeing despite the hard lockdowns that we suffer in some geographies over 20% increase in the number of installed devices on a 12-month perspective. So that meaning that there's an acceleration compared to that figure in the last months of the year. And in the case of the Santander specifically that you were asking, that is referred to Spain. And there, we are seeing that the joint efforts with Santander are helping us double the rhythm of new installations in the country.

[Operator]

Our next question comes from the line of Alvaro Lenze from Alantra Equities.

[Alvaro Lenze Julia, Research Analyst]

I have 2, if I may. First, I wanted to know if you could provide some more detail on the evolution of margins. If we look at the Q3, we can see although we have a quarter-on-quarter improvement in margins due to probably seasonality, margins are still down year-on-year, even though revenues are up and revenues from Latin America are up, which is your highest margin region. So I wanted to understand how this margin decline is explained, whether this is higher IT costs or some other decline in local margins that we are missing. And my second question would be regarding your cash flow, if you could clarify what the other cash outflows are on the last line of your cash flow statement?

[Javier Hergueta Vázquez, Chief Financial Officer]

On the first question, yes, we're seeing an improvement quarter-on-quarter. So that is narrowing the gap versus last year. So we expect that trend to continue. When you compare it to the previous year, I would say that on an accumulated basis, this is affected quite notably by the fact that we are comparing against 2020 with the first quarter still being pre-COVID. So that is somehow affecting the comparison when you do it on a cumulative basis and also which is part of the expansion for the communities [indiscernible], but also in the isolated quarter that you were mentioning, we have a tough comparable base on some of the items that we carried out last year, like the services in some of the countries related to the distribution of the aids linked to COVID, which are more profitable than the average in nature.So those are things affecting the comparable base. And then on top of that, we have a higher IT costs related to the digital transformation, which I think we mentioned in the presentation already, which is also creating part of the difference. So I think it's an addition of the different elements that explains the difference itself.And in relation to the others line in the cash flow, I think we've spoken about this several times already in the previous quarter. So it's exactly the same thing that we've mentioned. It has to do with the cutoff impact on the cash certification to clients in some jurisdictions that we account for in our books. And therefore, that creates a difference which arise daily. It depends on the level of cash being processed every day.So as we compare versus the closing of the year, which is the peak season in terms of activity, that creates some temporary difference, which tends to be neutralized throughout the year. But that's business as usual. We've been reporting the same way at all times, and it's nothing different from that. So it's something that you will see that quarter by quarter creates a difference because of the seasonality and sometimes it depends on, for instance, if the Easter is at the end of the quarter or after the quarter, so that creates part of the difference itself.But on a general basis, broadly speaking, that tends to neutralize at the year-end because then we compare Christmas period versus Christmas period. So that's a temporary difference that's neutralizing.

[Operator]

Next question comes from the line of Miguel Gonzalez from JB Capital.

[Miguel González, Vice President]

It's third quarter results bring said labor shortages and inflationary pressures in the U.S. were affecting short-term performance. So my question is, how are you dealing with this? You say negotiate collective agreements in LatAm after summer. So could we assume you made the inflation pass-through to clients already in the third quarter? Or should we expect a higher pricing in the fourth quarter and hence an increase in margins?

[Javier Hergueta Vázquez, Chief Financial Officer]

Yes. We are dealing with this in the ordinary course of business because, as you know, the price review is something that takes place during the second half of the year. So we do it on different tranches. I mean, so we first negotiated with the unions, then we agree with the clients and apply that retrospectively, and then there's a second round for that.We are at the same level that we typically are by this moment of the year, and there's nothing abnormal on that. Basically, we are passing through the inflation cost and that part of it is in the Q3 and part of it is in the Q4, but that's the normal course of the price review process that takes place every year. So I would say that there's nothing abnormal on that despite the higher inflation in costs.

[Operator]

[Operator Instructions] Our next question comes from the line of Beltran Palazuelo from Santalucia AM.

[Beltran Palazuelo Barroso, Equity Analyst & Equity Portfolio Manager]

Just regarding the margins, you said in Latin America, you already -- well, let's say volumes over let's say 2019 in Asia-Pacific, let's say in Europe, you are already 90%. When I see your margin improvement, when is the business plan if things keep improving and economies keep reopening and when do you think, let's say, margins of, let's say, pre-COVID of around 18% EBITDA should -- what is the business plan? That's the first question.My second question is your 2 competitors bring some movements both say in the share price and let's say, the recovery performance of the business is experiencing have announced a buyback seeing where the share prices was. And any new plans of Prosegur Cash on keeping implementing, let's say, the buybacks to really reflect that you see the business in the future will be better than today? And then in M&A, what things are you, let's say, evaluating, where are you seeing opportunities in new geographies, actual geographies? So that's my 2 questions.

[Javier Hergueta Vázquez, Chief Financial Officer]

I'll cover the 3 questions. So the first one on the margin evolution, yes, we said that we are over the 2019 figures in Northern America in local currency terms, of course. Then when it comes to euros, you have the FX impact there, which creates an impact and a difference in the mix itself. So we see that it's improving quarter by quarter, and that's a reality, and we expect that to keep happening again in relation to the foreseen figures in the future.I will refer myself to what we stated in the Capital Markets Day presentation where we were guiding to a 14% to 16% EBITDA margin for 2023. So we expect that way up to the 14% to 16% to happen gradually in -- from the moment now up to 2023. And farther than that, I mean, we were calling for an 18% to 19% in 2030. So at some point in time, I mean, we would be reaching the reference that you were mentioning.In terms of the buybacks, we finish our programs already, the second of them in early Q3. So there's no program right now in place. And I think that the next decision to be taken around the shareholder remuneration is for the Board of Directors to happen in December around the dividend payment. So I think that they will be, as they have always been, sensitive to all the different elements on the table. And based on that, they will evaluate all the alternatives they may have and decide in the best manner possible as they've done in the past with flexible approach that they demonstrated last year. So that's the main milestone, I would say, in the short term around the shareholder remuneration.And then on the M&A pipeline, we have opportunities under execution right now, and we expect things to evolve and some of them to be executed and closed in the coming months. And as we have stated during the 2021 year already, I think that the mix is much more skewed towards transformation onto new products. So a lot of opportunities coming in the new product space, and we are executing those ones that believe that create more value for us. And then to a lesser extent, I think there might be some component of opportunistic bolt-on in the traditional business in some of the geographies where we can still further consolidate our market share. But both of them are there, and I would be expecting some of those deals to happen in the coming quarters.

[Operator]

That will conclude today's Q&A session. I would now like to turn the call back to Mr. Javier Hergueta for any additional or closing remarks.

[Javier Hergueta Vázquez, Chief Financial Officer]

Well, thank you all for taking your time and attending the call. In any case, you know that our Investor Relations team remains available for any further queries you may have. And just wish you to stay safe and speak again back in full year results. So thank you all and goodbye.

[Operator]

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