I-Tech AB

STO:ITECH

Earnings Call Transcript 2023-Q3

[Operator]

Hello, and welcome to today's webcast with I-Tech, with CEO, Philip Chaabane, who will present the third quarter for 2023. After the presentation, there will be a Q&A. [Operator Instructions] And with that said, I hand over the word to you, Philip.

[Philip Chaabane, executive]

Thank you so much, and most welcome to our quarter 3 report of 2023. A wonderful day here in Gothenburg. I walk you through the slides that gives you an overview that we've been working on in the past quarter.

So let's start with the company presentation. As you may know, hopefully, you've been following us. I-Tech is the company name, which is on the interface technology abbreviation. We are deeply engaged in marine coating systems and then within the shipping industry, of course. So our technology is now available in 20 different or more than 20 different products, I should say.

So it's ingredient technology. It is anchored well into 6 of the 9 largest paint makers in the world and should be noted that those 9 control basically the full commercial paint market in the world. And number of ships using it is increasing all the time. There are more than 1,000 ships using this technology in paints on the ship outside. The opportunity side is estimated to be around $350 million to $500 million worth of Selektope sales if all antifouling pains produced would contain this agents. So as you probably have understood from before then, it's obviously a listed company on the First North list at NASDQ in Stockholm. It's unique and protective technology. And therefore, we're asset-based entity with basically everything else outsourced in terms of production and so on.

The ingredient, which is then relying biotechnology discoveries back in the university era in the shift for the Millennium is called Selektope because it has a very selected effect on the octopamine receptor of the target organism, which in this case is barnacles, which is one of the big problems for any underwater structure, but mostly for those who are then attended to move through the water, i.e., ships and it's by consequence, added as powder into the paint system. The purpose of what we are doing is to enhance the power of the coatings making them more resistant to the pressure of marine biofouling that every second is occurring on every surface emerged in oceanic environments.

The contribution of resisting biofouling better on a hub, is lower emissions to air and sea for the ship because it reduces drag. And drag is the key contributor to inefficiencies for a ship. So this is what we do, and that's an overview, right? So into the quarter, a very steady and profitable growth in this quarter. We're very happy to see a 51% sales growth. And a strong EBIT margin of 25% comparing to 23%, and by strong net result in monetary terms, 6.8 versus 4.2.

So a very solid quarter where we again proved how the increase in sales comes also with increase in profitability. And this is something we're very proud about and has been a key cornerstone in the assumptions around the business plan way, way back. And it's so overwhelming that we now see those effects for almost 3 quarters in a row.

Moving on to the impressive graph of how our history or legacy has been looking since the IPO time frame, which was 2018. This is 12 months rolling. And here you can see how the EBITDA are shifting from negative in terms of the orange bars into positive after COVID was a bit steady state in our business.

To them really release the power of the model and the interest of technology in 2022.

Revenues are following the same and the operating cost as a percentage of the revenues are moving from being, very much high in revenues and then a complete opposite scenario where growth in sales is actually contributing to an increase in sales and then lower operating costs. So at some point, that will obviously flatten out the operating cost part and you see it and just to end. Strong EBITDA, as mentioned, I think it was 32% of the quarter. So back to the needs of the products driving these fine figures. The emissions to air is an enormous discussion everywhere, which is well aware for all transport sectors and every other sector almost as well. That's a key focus. And in this case, it's been identified the hull alone would be able to contribute by some 100 million tonnes of CO2 in savings.

It should also be mentioned that shipping alone is about 2.3% to 2.6% of Global CO2 Emissions. And there's been some changes that I will come back to in the guidelines and targeting of the improvement of these figures, so, at least on the global shipping level moving forward. That comes from IMO. So I'll reveiw a bit more on that later on. But it's not only about emissions to air environments are also under the water. And in this case, the ecosystems and the the risk of disturbing those by transporting other alien species into them. It's also a very big problem. Bit more difficult to set a monetary figure on, and it's clearly not an emission to air problem, but it does impact the ecosystems and it's an increasing problem for many countries with the large coast lines.

So antifouling coating, which is found, highly not performing, what constitutes a huge risk to bring forward more of these alien species than in some cases truly invasive. So a clean hub with the best possible resistance to buy fouling attachments would then reduce its risk. Hence, it has a big value also in that perspective.

And then moving forward, we also see that certain regions in the world are aiming to implement guidelines or maybe even regulations and try to optimize what comes about of the paint, meaning reduce the amount of buy-side loadings as an example or in other ways, trying to reduce whatever is leached out from them. And in that context, I-Tech does have an interesting position as well. And I say that because the concentrations of Selektope in the painter, so tremendously small compared to any another that it automatically qualifies as an interesting tool in the toolbox to see if there are further optimization steps to take without compromising the performance of the coating. So those three different pillars are key to drive the business forward.

So how are customer wrapped into this? Well, first of all, I must say it's a conservative industry, right? Thanks a very long time to -- we're 23 years into the business, and obviously, the start-up phase is very difficult as it is, speed is much higher now when we're established. And we're happy to see that all the 9 customers in the world who have some sort of magnitude of impact on the industry is developing products and retuning products with the Selektope as a key ingredients. And that's good. Only that brings us to a very strong hope that all of those will, at some point, be recurring customers on a commercial basis.

It's good to note that we remain with the 6 big paint makers here using our products for new building. A new building is a special type of event where the ships are expected to perform very well initially, of course, not the least within the yard and until the delivery time frame, but also important to give the owner, the ship owner and operator, the best possible firsthand experience when it gets the delivery. So to be that market is important to open windows for further business into the dry-docking area, which has a bit of a different business model instructions. It's different factors coming in there, but we are seeing how those through the regulations of IMO and so on are changing into a trend where high-end coatings are gaining even much more traction than before. So the dry dock market is high volume and many more ships than being built per year.

And that's why it's interesting to see if we can check in more of those boxes moving forward. Again, it takes time and it won't change fourth quarter that rapidly as you all know.

However, we do see an interesting situation with 2 different paint metrics that tells us that there might be a product launch is coming forward. Not sure in what areas, is new build or dry dock only or both, that's to be seen, but the intensity and the R&D processes are aligned to at least give us a good chance that something may happen in 6 to 12 months from now.

I should say that all of these R&D programs that are run are 3 different key reasons why they have been prioritized in the paint maker R&D domain.

One is the stronger overall performance that's needed because the penalty of fouling is much higher moving forward due to higher fuel prices and not the least, the risk of increasing the energy cost in general, if they're going to ship fuel.

And then less buy-side loadings is a key thing in certain regions. That also is an interesting aspect when it comes to Selektope as I mentioned.

And then generally innovation in new concepts that could trigger readaption of how to integrate the technology. And it's very good that we're part of all these in different paint factories here. So we're happy with the long-term progress on the customer side.

I've been mentioning now the regulation change. And I'm always the governing body around this. That gathers the flight states of the global shipping industry, but also the key stakeholders in terms of countries.

And this is where our decisions are -- the only decision we made that can have any global impact on the industry, although others are regional impact which few might be more or less detrimental to the industry as they easily move from one country to another. But with IMO overall decisions need to be respected.

So what am I then talking about more specifically? Well, the key event is that 2050 targets have been revised from having a 70% CO2 reduction ambition to actually go to net 0 greenhouse gas emissions or around at least. And that means transacted to direct CO2 figures that the industry needs to save somewhere around 800 million tons of CO2 per year, which is the current gap, of course, that involves a lot of different things.

But that's a big news that came in early quarter 3 -- actually in July. And also revised the previous targets a bit. So 2030 is a 40% reduction. I think that actually remains the same. But they also requested introduction of new fuels in this time period, and I recall a figure 5% of fuel should be renewed coming from a renewable sources or some sort of synthetic fuels? So that's an uptick.

And also the benchmark between 2030 and 2050, i.e., 2040 is updated to actually contain the 70% reduction target on annual savings. Having striving for 80%. So the the regulations or the global pressure i should say, to improve faster is obvious in our shipping industry. And we're happy that the industry actually appears to be quite well aligned to do the needed changes, although it will be a challenge.

And the challenges are the actually put in figures in terms of introducing, as we have been saying before, operational index, the carbon intensity index, which measures continuous improvement of CO2 emissions year-by-year on a ship, meaning it needs to be maintained well. It needs to be continually improved and all that. That's where paints come in. But it's also how well they are designed and how efficiently design could work as its operating sweet spot.

And then there are also other things coming into the game, which are more penalizing things such as the EU Emission Trade System, which forces shipowners operators to pay fees depending on how the CO2 profile is from the ship and that is for EU. I think there are similar things for U.S. and let's see what's rest of the will agree on.

So there are strong drivers to make the change. There is strong pressure to speed up the change as of this quarter IMO news that came out in July. All that points in the direction that it's not a good idea to stay cheap on technologies such as antifouling coatings, rather opposite. It does pay off, and there's a big risk associated with coating that, thus not perform or is not selected in an appropriate manner. And that brings us into the next picture.

There's a lot of things that ship probably could do apart from the biofouling, of course, and we will not go into all of those. But every single thing needs to be addressed to have a chance to reach this next zero 2050 target because net zero basically means shifting fuels. And shifting fuels means a lot higher transportation costs or energy cost at least, I should say. And to try to make that hurdle a little bit more manageable, a very strong, high-performing proven antifouling coating is essential part of the equation.

That means that Selektope in combination with few other key technologies. Hopefully, you could see a very strong future to help the industry to transform as needed.

We also have this nice charity ship that we are so dearly proud about, to be sponsored. We're donating the Selektope powder and material to the coatings used on the under water surface. And in this case, we can announce that barnacles free arrival of Siera Leone was well received, although I don't think they really care about the barnacles as much as we do. But it's nice to see the ship coming into place who are we with makes a big difference for humanity. In terms of the barnacles, I think, it's probably only I-Tech right to really looking into it. But we did conclude that at this point of time, meaning for 2 months into the operational schedule of this ship, including actually the layup and new buildings.

The coating is sustaining quite well from a barnacles perspective, it's actually free of barnacles. However, it does have some slime and so-called microfouling on the other side. Which is to be expected after 32 months in a so static conditions. So this ship is static over very many, many months, maybe half year or 2 year before it moves anywhere. So the power of Selektope is really showing its effect here. And for the slime and so on, it's very difficult to keep that away unless the ship moves more often. The good thing is that it's relatively easy to wash off if needed.

So strong 32-month results on the barnacles free arrival at Siera Leone.

We also end the quater, pull off a conference where we gather the whole industry. And I say the whole industry it's all the way from a few selected shipowners, yards, meaning the leading yards in this case, Korean yards, paint makers all of them, ingredient suppliers, all of them, and that's not only buy sides. That's also a polymer suppliers and so on and other technology suppliers and key epidemic and research institutes and researchers have been all contributing to this well received conference. We have been giving ourselves a good chance to put the Selektope brand in the central bringing the industry together because without collaborations with others, no one goes anywhere else. We're all dependent on each other. But also, it's a good way to enhance relationships throughout the industry in a very efficient way. And we're happy that people pay their attention to go to Gothenburg in this case, 170 attendees from all the quarters of the world.

Back to then the quarter and the numbers.

We have, this morning [indiscernible] reported strong sales of SEK 32.2 million in the quarter and for the first 9 months, SEK 95 million, getting very close to the SEK 100 million that we set out way, way back in the IPO statements. COVID came in, in between, but now glad to see that we are very close to hitting that target. And that's only the first 9 months.

Gross margin remains in the same ballpark. The EBITDA and EBIT earnings are significantly impressive, I would say, in the terms of being -- growing a bit faster than the sales growth. So that is probably the best evidence that this product business model is really, really working. And this is despite some one term -- some costs that we bring on specifically for each quarter, but that's a very nice figure.

On the operating cash flow, very solid performance, and that gives us strong -- contributes to a strong cash balance with a good result in the background. So the growth in sales 51%. And if you adjust that for currency it's 48%, high volume, actually, the quarter with the highest volumes. This EBITDA margin was 31%, as I mentioned before, the EBIT was 25%. And net profit 21%. So overall a very solid figures and not much to comment other than enjoy the nice outcome of the quarter.

Should, be said that the large customer, meaning Chugoku Marine Paints stands very firm and drives the growth continuously. Most importantly in this quarter, where they have a very high depedency on the figures. And as I mentioned, the sales volumes are higher than ever this quarter. Reason why that is not fully reflected on the sales? It's a different customer mix from a high-volume accounts.

In terms of geographical distribution of our sales, it's not surprising that most of it goes to Asia. That would be true for most suppliers and paint makers in this industry, have most yards are located in that area. We do have a higher-than-normal sales in EU in the quarter also the 30% remaining are EU deliveries.

So it's an interesting balance probably reflecting the overall industry. So having said that, I'm moving to the next final slide.

Well, it's the final slide to give you some overall view of the business.

So on the opportunity side, a very strong focus from our customers. We recently came back from a long trip in Asia where we confirm that the prominent paint takers originating from Asian countries are very interested in technology and have a lot of projects, ideas and ways to try to push their performance and their coatings once they're forward by actually using our technology. So a strong, I would say, positive feelings coming out of that journey.

I wish to say that following the conference and following the many meeting with customers, it's clear that for the 5-year dry-docking schedules that the industry has required, there's no other liquid solutions, meaning paint solutions that are ready, that can deliver that performance over that time frame that does not contain biocides. So biocides and advanced binders that goes with it are essential to have a chance to meet these IMO targets.

I think that's an interesting and important statement from the conference and from the many interactions we have. That gives us confidence that it's a long, long interesting growth journey ahead, hopefully. And then as mentioned, the overall regulations from IMO and moving into EU and all thus, giving a long-lasting transition in this industry where every single actor depending, not depending on if their own intial operators operating, everybody would have to conform and actually pull the things together to have a chance to reach the targets of zero emissions in 2050. There's other challenges, of course.

And one is very obvious is the regulatory challenges that are most prominent in Europe where the whole chemical industry is being shaken up by new, much tougher regulations. And foresight hope that means that nearly say, it was flagged early on in the process as a potential candidate for being classified as ED and the prime instructor. There's no update on that process that it's a long, long process, and there's no new milestones being passed over this quarter. But I think it's something that the whole industry, including all biocide suppliers and many other chemical suppliers are fearing that the extreme position on EU is taking, putting the necessary tools at risk, the tools that are needed to have any chance to save the planet from the successive CO2 emissions or green house gas emissions.

So let's see where this ends up to the industry as such. And certainly, for our ED, we will keep you informed, when we have more information later on.

The growth of the business is important. That's much more in our hands and the first challenge item I just highlighted. That means trying to help customers go transition from new building products into dry-docking products. I'm just saying those for the last bullet, which means try to enhance technical compatibility to any novel coating systems or any different approaches, the paint maker may want to take to achieve the future targets.

One example is obviously silicones which is performing best when it also does have a slight amount of biocides inside and the question is how to integrate those in a more predictable way when it comes to leaching, that's an example of things that the industry is questioning themselves and that's part of the Antifouling Conference discussion as well as a general topic. So having said that, I'm done with the presentation, and thank you for your attention and I'm ready for questions.

[Operator]

Thank you so much for the presentation, Philip. We received a number of questions, so I think we'll get right ahead with it.

[Philip Chaabane, executive]

Yes.

[Operator]

Can you provide an update on the current order book status and how it's compared to the same period last year?

[Philip Chaabane, executive]

Well, first of all, we don't have that long visibility. We've been 6, 4 to 6 weeks on the order side. So it's difficult to make a comparison, also outlook the year before, but we remain positive to development of the customer accounts.

[Operator]

Are there any significant orders or contracts that I-Tech is currently negotiating or expecting to finalize in the upcoming quarters?

[Philip Chaabane, executive]

Yes. As I mentioned, we do have signs that there is some movements into the commercial domain by 2 different paintmakers. Those are including, obviously, contractual and commercial discussions as we speak and not being concluded, but the process is ongoing. So those are the ones that could be included in my response to this question.

I think the question also includes, do we have other of those frame agreements that we've been having in the past?

And no we do not have such frame agreements. We're not pushing for it either because the supply chain is now so robust that we can manage ups and downs in a better way than before.

[Operator]

How can the company ensuring timely delivery and fulfillment of orders, especially with the increase in demand?

[Philip Chaabane, executive]

Yes. That's the beauty of the case, we're ready to go 4x the volumes today on very short notice. We have a solid setup in the production and supply chain structure. So we have no challenges whatsoever to ramp up even if there would be significant changes on the positive side.

[Operator]

Are there any significant investments or expansions planned for next year to cater the growing demand for Selektope?

[Philip Chaabane, executive]

We do have some investments that will be related to entering new market space, meaning geographical areas, and this has been a topic in the past calls as well. The U.S. EPA is owing us some sort of results, at least according to the communication to us as of October.

On what the next steps are in that process?

And that's be aware, is following a 2.5-year delay or something like that in the process. But if that comes to the way and we hope that it comes, it may generate investments for us to start to enter that market from a regulatory approval perspective.

So something in that domain may come up on the investment side, yes.

[Operator]

Can you provide some insight into inventory levels with your customers? Is there a risk that sell-out is lower than sell-in with the inventory buildup or vice versa?

[Philip Chaabane, executive]

Well, We don't see any tendencies of that at the moment. Seems from the discussions or discussions we have from the pattern of order placements we get that. That should not be the case, but you should never know after 3 so strong quarters, there may be someone with a high buffer or losing a few contracts on the customer on the ship side, that then generates some sort of inventory that may push volumes out in time, but those are obvious signs I can highlight now.

[Operator]

How do you look upon the risk that one of the paint makers try to buy I-Tech to get a competitive advantage in the market?

[Philip Chaabane, executive]

I would say there is always a risk if you have a compelling product and you're highly dependent on it -- as a natural strategy discussion, I would assume but I can comment that, of course, there is a risk if you're delivering a nice performance and you're part of a solid strategy. But again, I think the technology also has benefits of being available to the whole industry to allow everyone to meet the future targets and get commercial advantages, some lower pricing on the total Selektope.

[Operator]

You mentioned in your report that you had a strong continued interest, both in nearby and in Asia. Could you elaborate a little bit on what you have experienced.

[Philip Chaabane, executive]

Yes. But I think it's just the same as the other quarter's have been. Very strong. And Asia is strong in general, and the whole thing is actually growing because there's a greater awareness of that there is a return of a higher investment in marine coatings. They are interested to trial in a new high-performing coatings in many of the, some of those including Selektope. It goes hand-in-hand with the ship owners or operators now talking about the most prominent ones in the world. It goes hand-in-hand within their overall ambition to show the leading game into the most efficient and ship operation profile that can be achieved and coatings is part of that.

EU i think it's just the fact that there is some turbulence in the, or rather itself, but maybe pushes a bit more dry-dockings into certain European countries than before, but this could be very also temporary for the quarter. I cannot say that's a trend. But we see some complexity out there in the world or maybe that brings some work back to Europe at the moment. Yes.

[Operator]

Chugoku is growing market share. Would you say that it's in any specific paint areas such as premium coatings or new build, et cetera?

[Philip Chaabane, executive]

Yes. It's interesting, which it will be -- obviously they are leading customers in all aspects. They do have a strong footprint in new build and in dry-docking. They have been around long enough to also have a larger variety of products than any other paint maker. And when I say variety, I mean they do offer something in the upper medium segment as well that's in the highest premium segment, so, and everything in between and combinations of different systems.

So, that makes a broader range that they could probably offer a strong Selektope candidate product to most ship owners while others are maybe targeting more specific type of ships or ship owners at the moment.

[Operator]

Global tension has recently rised in the last week. Have you noticed any effects from that, for example, newbuild orders?

[Philip Chaabane, executive]

I can't really comment on that. I think I heard a figure that new build orders were quite strong. I think we talked about that maybe even in quarter 2 that new buildings and the orders are relatively strong. I think most yards are booked out in Korea at least for next 3 years, even maybe 4 or 3 years, I think it is. It has up until now been a strong demand for energy carrying vessels, meaning gas vessels or LNG vessels as they're called.

And we're, I think we're seeing and a [ trend goes ] also on the container side to renew and make them bigger or more efficient, maybe most importantly, and this is part of the IMO trend as well because a ship, there needs to be new ships coming in at some point to, that are adapted to new alternative fuels as an example. So I think the whole thing is going to also spill over to the newbuilding side eventually.

Now I had to maybe more of hesitation to what fuels to use and what is proven what works, what doesn't work -- so step by step, I think there will be a new building boom in terms of adapting ships to this future new fuel strategy.

[Operator]

How did your visibility change over the last quarters? Do you have a reliable visibility for 2024?

[Philip Chaabane, executive]

We have indications as always for a 12-month period ahead. I wouldn't say it has changed in the resolution quality or in this ability compared to before. I think it's what we could expect and then we make some assumptions on that and a relatively good idea of what's to come.

[Operator]

Would you consider the current environment, a boom for your products? So are we at a cycle high, so to speak?

[Philip Chaabane, executive]

Now, this is an interesting question, right? From -- now if you ask people in the industry, I would think they would answer that, okay, we're in a bit of a downturn, shipping those in 5-year cycles, the next boom in the industry from a general supplier perspective, I should say is probably expected to be around 2025 and onwards because they have a huge number of ships that are then coming in for either new build or dry-dock needs and only that correlates with the regulations. For I-Tech, we're working for small market shares, and I think there's a lot of room for growth even if the market is a bit down on the general perspective.

So I think if we can have a strong growth, we had a strong growth for if we can continue to have a growth at least and hopefully strong growth, of course, I think there is more factors speaking in our favor moving until '25 an onwords. That's an assumption on a high level based on the industry patterns from the past.

[Operator]

What is the revenue share of CNP in the last quarter?

[Philip Chaabane, executive]

Very high, over 90%.

[Operator]

Can we get an update on the EU regulation process? What do the customers think of the process? And do you think it's affecting the demand?

[Philip Chaabane, executive]

The EU regulatory process, is that right?

[Operator]

Yes. Yes.

[Philip Chaabane, executive]

I think the industry -- I mean, for us, yes, it's a concern. That it may be lower to some sort of doubt about the future proofness of the technology if ED actually happens. And if Selektope is the only 1 falling under that regulation or falling short and the last regulation. So far, I think the industry is, I know the industry is very supportive. They are questioning among each other, at least how these regulations actually are set up given the need for fuel saving needs, right? Emissions to air and reduce and met the IMO targets and even the European targets and then they are trying to take out most of the tools. And when I say most of the tools, you should be aware that Selektope is not the only chemical having challenges in the system.

I think most chemicals are maybe experiencing similar kind of headwinds or faring headwinds because the complete ultraconservative view that's now taken by European Union. The rest of the world should be said, has a completely different view of this, more pragmatic a much more balanced view of the chemicals that are now used and now approved. So then the EU discussion is a bit how to say, strange.

[Operator]

Thank you. Following your recent anti fueling conference, which was very good, by the way, have we experienced a greater interest for collaborations and partnerships?

[Philip Chaabane, executive]

Yes, we have -- we see that the industry is appreciating to get together and talk, obviously, what happens after it's not disclosed to public and not to us either. We do feel, however, that there are more creativity, more questions coming around a bit more united industry to manage certain overall product issues such as the biocide of view in Europe.

It's not only I-Tech fighting this on a lobbying perspective. We do that jointly with other biocides to target as everybody is fearing or experiencing challenges in 1 way or the other. But more, the question is more related to what kind of customer interactions did we get out of this? I would assume, and I'll say that, we don't disclose what went on after, but I can confirm that we have interesting development. Co-development projects being discussed after this conference that we didn't have before.

[Operator]

Moving on to the last two questions here. You have a strong cash balance. How do you plan to invest your cash holdings?

[Philip Chaabane, executive]

It's a fair question. It is being obviously discussed in the Board as we see a continued strong contribution to building the cash, it also means that we can be more and more confident that potential dividends could actually be reasonable but there are also other options in expanding the business and using the capital to create long-term growth or a different product segment or developed Selektope into more use areas or something like that. So I think there will be further information on that in the time frame of May next year.

[Operator]

So moving on to the last question here. What is the outlook for 2024 at the end market and the end markets as big?

[Philip Chaabane, executive]

Yes. So 2024 is one of those important transitions here when CRI and all those things actually been measuring for one year. I think it will give -- it will inspire the shipping industry to actually take a look at the figures and understand that it makes sense to invest in efficiency technologies. And if they didn't, they see that they need to do it, right?

So the numbers coming on the table in 2024 will help push the industry forward. As I mentioned, there's this cycle of a huge new building from 5 years back that are not coming in for dry-docking. On top of that, the need for either new vessels or dry-docking for retrofitting technologies will help increase the likelihood of high and nice business environments from 2024, '25 and onwards.

How that plays out exactly in 2024? I don't know. But it's a good feeling on the overall picture, which I guess, was the question.

[Operator]

Thank you so much for presenting today and answering our questions, Philip, and good luck going forward.

[Philip Chaabane, executive]

Thank you so much, and thank you for tuning in.

[Operator]

Thank you all for tuning in, and we wish you a pleasant weekend.