Salmon Evolution ASA

OSE:SALME

Earnings Call Transcript 2021-Q4

[Hakon Andre Berg, Chief Executive Officer]

Good morning, and welcome to this presentation of Salmon Evolution's Fourth Quarter 2021 Results. My name is Håkon Andre Berg, and I'm the CEO of the company, and I will be giving this presentation together with our CFO, Trond Schaug-Pettersen. Questions can be asked throughout the presentation, and after the presentation is ended, we will go through the questions and try to answer them the best way we can. We will start this presentation by looking at some highlights for the quarter before we go through the main headlines of our approach to land-based farming and our choice of technology. We'll then take a look at the operations in Norway and our joint venture in South Korea before we go through the financials. And then we will end this presentation with some comments on outlook. The main highlight from the fourth quarter is that we are very pleased to announce that we are still on track for the first smolt release at Indre Harøy in March and with the CapEx in line with our budgets. We started testing and commissioning in the fourth quarter and the first test trials of the water intake station in January. As you could see in the movie, we reached one of the major milestones a few weeks ago when we filled the tanks with water for the first time. This was an emotional event for our staff and served as a preliminary reward for all the countless hours of hard work and execution in this amazing project. During the fourth quarter, we also entered a feed partnership with Cargill where we aim to work together to develop the best feed possible for our hybrid system. As part of this arrangement, we also did a $5 million private placement towards Cargill. In December 2021, we signed an agreement with Statkraft for the purchase of 100% renewable energy from a hydro power plant located not far from our facility. This agreement does not only enable our salmon to be farmed with the lowest carbon footprint possible, but it also secures our electricity costs at attractive terms, which confirms our original budget assumptions. During the quarter, our smolt has been performing well and is soon ready to be transferred to Indre Harøy. The average size of the smolt is now well above 250 grams and is expected to reach 300 grams when released in our new facility. Of the most important post-quarter events, we signed a Head of Terms agreement with Artec Aqua earlier this week, which sets out the main terms and principles for the engineering and construction of Phase 2 at Indre Harøy. This agreement ensures Salmon Evolution the opportunity to progress with our development at this site, while we maintain our financial robustness as no commitments or investment decisions are connected to this agreement. Before we take a deeper look at our ongoing operations, we will spend a few minutes to give more information about our company and our approach to land-based farming. Salmon Evolution was founded back in 2017 by a group of veterans from the conventional salmon farming industry. Their ambition was to build a state-of-the-art, land-based salmon facility where you basically extend the ocean's potential by transferring the preconditions offered by the sea to farm fish on land. This is made possible through our chosen hybrid flow-through technology where we create optimal living conditions for the salmon while, at the same time, maintain a low operational risk and with a production cost that is competitive with conventional farming. Our first facility is under construction at Indre Harøy on the West Coast of Norway and will have a total production capacity of 31,000 tonnes gutted weight when it's fully developed. The build-out is divided into 3 phases with Phase 1 comprising a production capacity of 7,900 tonnes. The construction has been ongoing for 21 months, and we plan to release the first fish into the facility in March. And given that our technology is scalable beyond Norway, we also have strong international ambitions, and in March last year, we formalized a joint venture with the Korean seafood giant, Dongwon Industries, for the development and construction of a 16,800 tonnes production facility in South Korea with rollout production targeted in 2024. We identify Salmon Evolution as a conservative company that disrupts a maturing industry, which may seem like a contrast. But for us, this is actually rooted in our DNA and even our name as we will always stay true to the fundamentals of salmon farming, which is that it's all about the salmon. We see what we do as a natural evolution of the salmon industry, and as all salmon farmers are aware, successful operations is all about providing excellent conditions for the fish to grow. This is the baseline behind the establishment of Salmon Evolution, and we are convinced that excellent living conditions for the salmon directly affects our profitability, and this is the very reason for our choice of technology. Our position in this area means that in our search for growth opportunities, we're not willing to compromise on fish welfare or water quality as we know that this is the most fundamental part of a successful land-based operation. We also try to have a humble approach to the new challenges that come with land-based farming, and even though our company is founded and developed by some of the most experienced people from the Norwegian industry, we still admit that the land-based operation is complex, and we need to develop our best practice together with strong partners and other industry players. And this is why we're proud to launch our first facility in the heart of the Norwegian aquaculture cluster and also why we see this natural to continue to improve this facility as the phases will stand on the shoulders of the previous projects. We do also see the mathematics of costs and prices that exist in overseas market but also the complexity of operations and the lack of local experienced personnel. Thus, we're confident that a strong Norwegian-based ratio is the best way to ensure successful development in overseas markets. As a young company, we are also aware of the time line and risk connected when doing heavy infrastructure investments overseas. In this stage of the company's development, we are convinced that the best way to expand internationally is together with a strong local player like Dongwon in South Korea. As these projects require local knowledge about regulatory framework and trustworthiness when relating to local stakeholders, our experience has been that the time line can be shortened and the execution risk lowered when we team up with someone who understands the local dynamics better than us. We will, therefore, continue to develop relationships with potential partners and look at this from both a financial and an industrial perspective. The diagram to the right is an attempt to illustrate some of the basic experiences from decades of land-based farming in the smolt, post smolt and bridge stock segments, and that is that an increase of level of recirculating beyond 65% to 70%, meaning that more than 2/3 of the water that flows into the tanks at any given time is recirculated water, brings an exponential increase in operational and biological risk and complexity. This is mainly driven by the need for a bio filter and other water treatment elements, and our chosen hybrid flow-through system is designed with this experience in mind. Because of this, we have decided to build facilities where we reuse some water for the sake of cost reduction but where we also use continuous supply of sufficient, high-quality seawater as our primary water treatment element. This dilutes all unwanted elements in the water and thus provides excellent growth conditions for the salmon. In our hybrid flow-through system, our only water treatment besides providing new seawater will be to add oxygen and aerate for CO2, which again is something have done in the smolt industry since the '80s. As we stay away from risky and complex elements of water treatment, we can operate with significant lower risk of unwanted events to occur. And as we have also designed our system to have each tank as a completely individual bio zone, we also reduce the effects of a potential event to the minimum as we never mix water from one tank with another. By being dependent on significant amounts of seawater, we do accept that our hybrid system have some limitations when it comes to geography and potential locations. At the same time, we see that our opportunity to use water from different depths makes this solution possible in areas that previously had not been suitable for salmon farming.Now looking at ocean temperatures but also other parameters, we see a significant potential for our solution internationally, and our first international project in Korea is a great, great testament to this technology. Yes, we do have to be located along the coastline, and yes, there still are some areas in the world where we cannot build a facility with this solution, but at the same time, there are many locations where this system will work very well. Our focus again is to find optimal entry to the most attractive locations at the same time as we execute on our ongoing projects. For salmon Evolution, operations can, at this point, be divided into 4 main areas. Most importantly, we're managing a complex building project at Indre Harøy, together with our main contractor, Artec Aqua. Second, we have an ongoing smolt operation at Kraft Laks where we prepare for several deliveries to Indre Harøy in 2022 and '23. We are then, of course, also preparing for operational start-up at Indre Harøy, and we're also working with design, scope and permits among many things in Korea to ensure that we have progress with K Smart Farming. As mentioned earlier, so far, we have developed our project according to plan, and we are satisfied with our ongoing operations at the building site. At the end of the quarter, we had assembled 11 out of the 12 fish tanks and also most of the buildings on site. We started testing the equipment and the subsystems in the facility and have been ramping up the commissioning and testing phase further in the first quarter of 2022. For quite some time, we have had more than 200 workers on site and have been able to navigate well in times with heavy COVID impact on all of society. So far, we have had only 1 day of shutdown at the site due to COVID. We have seen some reduction in productivity as we have been dividing our workers into cohorts, but we have been able to keep up the pace due to a high level of flexibility and dedication among our workers. And we're now preparing to welcome our first smolt into the facility in March, and we then expect to harvest our first salmon through Indre Harøy at the end of this year. This is a picture recently taken at the site, and as you can see, all of the 12 tanks are now assembled. To the right of the tanks, you can see the technical rooms, which serves the tanks with tempered oxygen and aerated water. The fish trading system and the feed center and control room is located next to and above the technical rooms. This picture was taken just a few minutes after the first water was flowing into the first smolt tank. As you can see from the picture, we have 3 inlet streamers in each tank where 2 provide the tank with reused water, and one facilitates the flow of fresh seawater. The tanks are 30 meters high and will be covered with water up to 8 meters. Here, you can see tank #1 filled with 5 million liters of water coming from 95 meters deep. This picture was taken in January, and the water temperature for the inlet water was around 8 degrees. The discharged water flows through the bottom of the center column and will then be filtered before it is released back to the sea. Here, you can see the second floor of the intake station. The blue filter to the left is the Bernoulli filter that filters out any particles, and you also see the UV filters that will take care of all pathogens and bacterias to ensure that the intake water doesn't bring any unwanted diseases or parasites into the tank. The intake station is built with a high level of redundancy as we have doubled capacity on the inlet pipes, and we have a dedicated emergency power system for this part of the facility. As mentioned earlier, we are proud to say that we are on track to welcome our first smolt into the facility at the same time as we communicated when we started to build in May 2020. The first release will consist of 100,000 smolt at around 300 grams, and as our production plan is based on 6 installments per year, we will progress with new smolt releases every second month going forward. As we will gradually ramp up our production during this year, we will reach a new important milestone in November. This is when we expect to release our first steady-state batch size of 280,000 smolt at 130 grams. Before that, we will welcome our second batch in May where we will release 100,000 smolt of 130 grams before we increase the volume to 150,000 in July and 200,000 in September. We plan to harvest full-size salmon from our first batch in the fourth quarter, and with this plan, we estimate that we will get an industrial harvest volume from our facility already in the first half of 2023. As already mentioned, we signed a Head of Terms agreement with Artec Aqua a few days ago, which sets the overall terms and conditions for the planning, engineering and construction of Phase 2 at Indre Harøy. Phase 2 will be an improved copy of Phase 1 where we will implement the experience gained from engineering, building and operation. The parties estimate that the total CapEx for Phase 2 will be in the range of NOK 1.3 billion to NOK 1.4 billion, and the target price is expected to be set during the second half of 2022. The agreement signed recently will function as a basis for a final agreement, which we plan to sign during the first half of 2022. An important principle is that the actual decision to commence construction is subject to financing reservations for Salmon Evolution, which gives us flexibility to fully align this project with our overall financing plan. We will now give some comments on our joint venture project in Korea. The good work with our joint venture with the Korean seafood giant, Dongwon Industries, continued in the fourth quarter with a focus on early engineering and permits. As communicated earlier, Salmon Evolution and Dongwon have established a joint venture called K Smart Farming where we will build and operate the land-based salmon farm on the Northeast Coast of South Korea. The facility will be developed in 2 phases, each with a production capacity of 8,400 tonnes and where we will build on the experiences learned from our project at Indre Harøy. Salmon Evolution has a 49% ownership in the company with Dongwon as a local company holding 51%. In addition, Dongwon will provide 75% debt financing for the joint venture, enabling a capital-light volume growth for Salmon Evolution. What has really intrigued us with South Korea is that this is an area which highly benefits our low-risk, hybrid filter concept. Temperatures are not optimal on the surface, but at different depths, we have access to unlimited amounts of water, which gives us the opportunity to create a business that can supply both the Korean and Asian market with high-quality salmon in relevant weight classes and with a true salmon taste. We also see that we should be able to set up an even more energy-efficient production in Korea than we have in Norway as the Korean sea temperatures reduces the need for heating. During the fourth quarter, we completed a feasibility study, and we're now in the process of fine-tuning the facility layouts and production plans. And together with Dongwon, we're also actively working on securing relevant permits and experience good progress with relevant Korean authorities. Over the coming quarters, the plan is to further intensify engineering activities, enabling construction start during the end of 2022. And I will now give the word to Trond Håkon, who will go over the financials for the quarter.

[Trond HaKon Schaug-Pettersen]

Thank you, Håkon. As Håkon mentioned earlier, we remain on track with the first smolt release in March, and from then on, we plan on putting out new smolt every second month going forward as we gradually ramp up our production. Over the last quarters, we have therefore focused a lot on preparations for production start and to make sure that we have the necessary resources and systems in place to smoothen the process from going from a building project into being a fully operational salmon farming company. We now have all key operating personnel in place and taking part in the ongoing commissioning phase of the facility, which ensure that they know the facility very well when we start production. Also, many of them have, during the second half of last year, had real-life training at our smolt company, Kraft Laks. In sum, this makes us very confident that we have an operating organization capable of handling the tasks that lay ahead of us. Over the last quarters, we have also entered into contracts with Tier 1 suppliers for all the main input factors required in our production. We have secured in-house control of smolt through Kraft Laks. We have entered a strategic feed partnership with Cargill. We have secured liquid oxygen supply from Nippon Gases, and we have entered into a green supply energy agreement with Statkraft. Further, we also have a strong partnership with Vikenco For slaughter and processing services, giving us full product range of flexibility in our upcoming commercial operation at an industrial cost level. We are also very pleased to see that the various costs applied in our original budget for these items were realistic. Actually, on the smolt side, we see lower-than-expected cost due to now having an in-house profitable smolt operation. When it comes to feed, we do see somewhat higher cost, which is naturally explained by the increased feed raw material prices. However, with the low feed conversion ratio, we expect, in our hybrid flow-through system, this should have less impact on our feed cost compared to conventional farming. All in all, this makes us more confident than ever that we will have an operating cost on par with conventional farming once we reach steady-state production. Looking at our P&L for the fourth quarter. There are no special items to report. Following the third quarter's external sale of smolt, full year revenues for 2021 ended in excess of NOK 12 million. As communicated earlier, our smolt facility is fully stocked with smolt, and in addition to serve our internal smolt needs, we expect external smolt sales in both Q1 and Q2. From Q3 and onwards, Kraft Laks will exclusively serve our facility at Indre Harøy. When it comes to the operating result for the fourth quarter, it ended at minus NOK 12 million, reflecting a high activity level in the company ahead of our production start. Included here is also a negative contribution from Kraft Laks of NOK 1.9 million since the company had no smolt deliveries during the quarter, and the profit is first recognized when the smolt is sold. Given the high biomass currently at Kraft Laks, we expect a healthy profit contribution from this company during first half of 2022. For the full year, operating profit ended at minus NOK 38 million. This also includes a positive contribution from Kraft Laks of NOK 5.7 million. The high activity level at our Indre Harøy building site continued in the fourth quarter, and CapEx ended at NOK 215 million compared to NOK 230 million in the third quarter. This means that the total accumulated CapEx since project initiation now stands at NOK 920 million. A lot of the CapEx-intensive construction is now nearing completion with the water intake station being technically ready for operations. Concrete works are also in its final stages, and all fish tanks are assembled. We have also made good progress on technical rooms, including installation of process equipment such as heat pumps and heat exchangers, oxygen systems and CO2 and nitrogen strippers. As we now are approaching completion of Phase 1, our visibility on final Phase 1 CapEx has increased significantly. With the backdrop we have had post COVID with increasing raw material and logistic costs, we are very pleased to see that our estimated total CapEx is in line with our budget, even though we have decided to make certain strategic upgrades, enabling efficiency gains for Phase 2. This includes a joint feed storage and distribution system, base water treatment, emergency power systems and other smaller items. We have also factored in smaller adjustments relating to increased raw material prices and potential but not materialized or identified changes. We do, however, emphasize that these adjustments are fully covered by our already built-in project buffers. Going forward, we expect to see a gradual reduction in quarterly CapEx, and we estimate remaining CapEx of NOK 480 million as per year-end 2021. Salmon Evolution continues to enjoy a strong financial position, and we remain fully funded for our committed projects. As per year-end 2021, we had an available liquidity of about NOK 1 billion, consisting of more than NOK 500 million in cash at hand and almost NOK 500 million in committed undrawn credit facilities. When adjusting for the remaining CapEx of NOK 480 million for Indre Harøy Phase 1, our planned remaining equity contribution into our Korean joint venture, and the Kraft Laks sellers credit, we have over NOK 300 million available for working capital and buffer purposes. Also, as demonstrated throughout 2021, we have been able to secure bank debt at attractive terms with a total of NOK 677 million in total committed credit facilities. We have a very good dialogue with our banks and expect, to the extent we decide to execute on Indre Harøy Phase 2, to finance a significant portion of Phase 2 CapEx with bank debt. Finally, we also want to highlight that Phase 2 investment decision is planned taken during the second half of 2022, and this provides us with a lot of flexibility to align our Phase 2 investments with our overall financing plan. I now leave the word back to Håkon for some final remarks.

[Hakon Andre Berg, Chief Executive Officer]

Thank you, Trond Håkon. Before we summarize with some words on outlook, we want to give a comment on our goals for development of harvest volumes. The facility at Indre Harøy is divided into 3 phases where Phase 1 construction is ongoing. We see a double value in this project as it both functions as our main contribution to harvest volumes in the years to come but also in how we will seek to develop this as our best practice facility where we will have the opportunity to continuously develop our concept and technological platform as well as our operations. By doing this, we will be able to contribute with supreme experience in future projects, which should enable us to execute both the building phase and operations at a very high standard. We expect our facility in Korea to start construction in 2022, and from there, we have a great foundation for future scaling our Korea and Asia operations. We thus see that we have a very tangible pipeline with a production capacity of around 24,000 tonnes in 2024, which will continue to grow in the years following that. As we went through earlier, we have a smolt production at Kraft Laks, which is ready to serve our needs at Indre Harøy, and we plan to have 5 smolt installments during 2022. We are confident that we will be able to execute both on our completion of Phase 1 as well as our farming operations. Our production plan for the first year is based on a ramp-up strategy using 4 batches of lower volumes before the fifth batch is estimated to be the first with a full run rate volume of 280,000 smolt at 130 grams. We estimate harvest from the first batch during Q4, and then to see an increase in harvest volumes as we move forward into 2023. We are still on track for the first smolt release in March and with the CapEx in line with our budget. At the same time, we see progress in our project in Korea where we are working with permits as well as project planning and early engineering. Salmon Evolution has a strong balance sheet, and we are fully capable to fund our committed projects in both Norway and Korea. Finally, and again, we do look forward to March and do welcome the first fish in our tanks. For us, this will be a major milestone, and our focus now is to spend all our efforts and resources to be ready to move into operational mode when the fish are in place. I think this was the last slide of this presentation, and thus, we give the opportunity for you to ask questions, and we will try to answer them the best way we can.

[Trond HaKon Schaug-Pettersen]

Yes. We have received some questions. Thank you all for joining the call. We'll just take it question by question, and the Q&A is open. So if you have additional questions, please send them in. Let's start with one question here to Håkon. "Are you satisfied with the smolt weight?"

[Hakon Andre Berg, Chief Executive Officer]

Yes, we are. We have been very satisfied with the production at Kraft Laks. And also, as I mentioned earlier, we have a customized production plant for 2022, as we have a partial takeover of the facility. So the smolt weight is optimized to be able to utilize fully the capacity of the facility in this partial takeover process.

[Trond HaKon Schaug-Pettersen]

Yes. I have one additional question for you, Håkon. "Does the filter system prevent bio hazards, that is sea lice or micro jellyfish?"

[Hakon Andre Berg, Chief Executive Officer]

The simple answer to that is yes. Our Bernoulli filters have -- are designed in a way that they should keep out all sea lice and also jellyfish and other sort of, yes, living individuals in the sea.

[Trond HaKon Schaug-Pettersen]

Yes. I also have a question here. "With the planned smolt release for 2022, is it fair to assume that total harvest volumes in 2023 will be around 4,000 tonnes gutted weight?" I think that is a little bit on the low side compared to what we have in our plants. We see around 5,000 tonnes gutted weight harvest volumes in 2023. And then we also have another question here. "How do you expect the equity contribution to K Smart to look like through 2022? And have you started discussions with banks for debt financing in K Smart?"I can start with that question. So last year, we made our first equity contribution into K Smart of about NOK 27 million. We expect to have a smaller tranche 2 during 2022, likely in the third quarter, of a similar amount, and then it's natural to think that the last part will come later on. In terms of the bank debt discussion, as communicated, part of our joint venture agreement is that Dongwon will facilitate debt financing of this company. We are obviously involved and are discussing this and will revert back with information once we approach construction. We also have one question here. "When do you think you are going to profit?" I can also start with that. I think in terms of profitability, obviously, now throughout 2022, we have a gradual ramp-up of production, and as Håkon mentioned earlier, we will -- during the first half of 2023, we will eventually comment on industrial scale of production, and that's obviously also linked to the time when we expect to enter profitability. We also have a question here. You can take that, Håkon. "Comments about raw material cost inflation."

[Hakon Andre Berg, Chief Executive Officer]

Yes. As we have communicated earlier, we have been securing all or most of our contracts with our subcontractors on fixed prices and have been able to navigate, I think, really well in terms of the broader picture we have seen on the cost side. But then we have seen that because of some changes in the scope with our subcontractors, especially on concrete, we would have -- we have had to structure and update our contracts on some of the buildings and some of the construction work, which has led to -- especially in one of the contracts, we've had to absorb sort of the new cost levels on concrete and iron, which is, in significance, dominant part of the increase in raw material costs.

[Trond HaKon Schaug-Pettersen]

Yes. And then we have one question here. "What is on par with conventional cost? Is it Norwegian average? And also, what harvest volume do you expect for 2023?" In terms of the last one, we answered that earlier. We expect around 5,000 tonnes. I think in terms of on par with conventional cost, you should think Norwegian average. We also have a question here on the Korean operation. "What price of salmon ex farm are you forecasting?" Maybe you would share some light on that, Håkon.

[Hakon Andre Berg, Chief Executive Officer]

Yes. I think it will be difficult to sort of go into the detailed structure around that, but obviously, we do see that the prices to Korea has been high and actually significantly higher out of Oslo than the sort of the average Norwegian price out of Oslo. And then we see, of course, significant costs related to air freight and handling, which we will -- we are confident that we will be able to build into our pricing structure for K Smart Farming. And then additional to that, we do know that we have a very good structure for sort of demand on different sizes in the Asian market with sort of different key sizes being on demand in Japan, Korea and China. So we think we should be able to distribute our salmon good into those markets using different sizes. And then finally, we do also knowledge that in Korea, they highly prefer sort of the made in Korea. So we have high expectance for also that to be a potential increase or a driver of prices in the domestic Korean market.

[Trond HaKon Schaug-Pettersen]

Thank you. We also have a question here. "What share of the Phase 2 CapEx do you expect to be bank financed?" I can take that. As communicated in the presentation, we have made no commitment as to the Phase 2 investment. Yes, the final investment decision is planned to be taken during the second half of this year. What we do now is that we allocate some internal resources so that we are in a position to execute on that project, if we decide to. In terms of financing, we obviously have -- we are very happy with debt financing we achieved for Phase 1 and see it as natural that -- for Phase 2. Given the ramp-up and verification of our production and concept we expect during this year, we expect a higher loan-to-value on Phase 2 and also a further improvement in terms. And then we also have a question here on the date for when we will release the smolt. I don't know, Håkon, if we want to be more specific than March. So...

[Hakon Andre Berg, Chief Executive Officer]

No. I think we are confident that we will release the first smolt in March, and then I think the actual date, of course, depends on everything from the schedule at the smolt site, the well-boat and also other aspects. So yes, I think we will say March, and then we will be glad to report back later on that.

[Trond HaKon Schaug-Pettersen]

Yes. We also have one additional question here as to financing of Phase 2. I think that was answered earlier. I think that then we are basically through with the questions we have. We will hold the line for a few seconds more if there are any additional questions. Yes. Here, we got one question for you, Håkon. "Do you have plans to enter other foreign markets besides South Korea?"

[Hakon Andre Berg, Chief Executive Officer]

I think we definitely see potential in other markets as well at the same time as we have a strong dedication to our current execution plan. So we do have an open approach to this. We know the time lines in greenfield projects are long. So I would say there are no specific plans communicated now, but we will have an opportunistic view on further expansion in the time that is ahead.

[Trond HaKon Schaug-Pettersen]

Yes. And also just to add a comment. I think it's fair to say that we experience a lot of incoming requests for potential participation in projects. So we have a good flow of projects coming into our systems. But as Håkon said, no, nothing firm on the table yet. I think we'll hold for a few seconds more, but I think we are almost through with the questions. Then there are no more -- yes, we've got one final question here. Håkon, "What do you think about future salmon prices? Any thoughts?"

[Hakon Andre Berg, Chief Executive Officer]

Yes. I think we are definitely sort of optimistic on the salmon market as a whole. We do see that salmon is a very -- the demand out globally is high and seems to be growing. And of course, there are different analyses in terms of what the supply and demand equilibrium will be. So from our side, I would say that we have a strong market view for salmon in general, and I think I'll leave it there.

[Trond HaKon Schaug-Pettersen]

Okay. I think that's all for today. Thank you, everybody, for joining this call. We look forward to see you next time. And then we have -- yes, we look very much forward to share the development and the exciting times we have ahead. Thank you.