Gielda Papierow Wartosciowych w Warszawie SA

WSE:GPW

Earnings Call Transcript 2021-Q3

[Pawel Wieprzowski, analyst]

Good afternoon, ladies and gentlemen. My name is Pawel Wieprzowski and on behalf of Wood & Company, I would like to very warmly welcome you to the third quarter conference call with Warsaw Stock Exchange Management. Today, the company is represented by Mr. Marek Dietl, President of the Management Board; Mrs. Izabela Olszewska, Member of the Management Board; Mr. Piotr Borowski, Member of the Management Board; as well as Adam Mlodkowski, Vice President of the Management Board. Gentlemen, please go ahead.

[Marek Dietl, executive]

Thank you very much, Pawel. Thank you, all the participants. We appreciate your interest in our company. Let me start with helicopter view on this third quarter. So the revenues, EBITDA and net profit -- the total net profit were up on the year-over-year basis. And last quarter, we also paid out a healthy dividend with the -- our dividend yield was over 5%. So thinking about current market situation that is well after all.

Our results were partially due to the strong performance of our capital markets in terms of indices and valuation of the companies. So actually, all our major industries increased the last quarter and improvement in the valuation of the companies listed on our venue resulted also in more IPOs. And year-to-date, we have 26 IPOs and over a dozen of others waiting for the clear of the prospectus by Polish slack. So not only the IPOs were strong, but also the pipeline is very healthy.

We also improved our simplified IPO procedure; we changed our regulation. We also worked on shorting the period from allotments to the listing. So we try to improve the user experience when it comes to new list. And we were also busy working with our GlobalConnect project which is basically listing foreign companies on our MTF.

We also started the first version of our Analytical Coverage Support Programme with 2 -- first 2 editions were a great success, and we continue supporting of the research coverage of some smaller or medium-sized, mid-cap companies. And we constantly improve these programs so more and more companies are covered.

We also launched a new initiative. It's related to dynamic ad insertion. So we can think about -- it's a kind of auction of airtime -- advertising airtime on linear TV. It is a kind of soft diversification from our core business into a new area of media. We also had Three Seas Exchanges Summit, especially this October, where we also gathered all the CEOs of the Three Seas, so it's a part of the European Union and it was a great compress, great achievements as we managed somehow to get -- to sneak into a kind of pandemic gap, so we can have all the CEOs on-site more so, including the Austrian -- or Vienna Stock Exchange CEO and Budapest Stock Exchange, et cetera, et cetera.

And we are -- we fully implemented our own Index Calculator tool on our venue. So we have now complete solution for the exchanges, which want to calculate their indexes on their own. So we have technology and the know-how at GPW Benchmark, and we can have index factoring, if someone wants to outsource index production on us and/or we can [indiscernible] have their own indexes business.

So this was in the nutshell. And let me now pass the mic -- virtual mic to Iza and Piotr for more details.

[Izabela Olszewska, executive]

Good afternoon. It's Izabela Olszewska speaking. So it would be my pleasure to guide you through the business part of the financial markets presentation. And as usual, I would like to start with the international look at the equity turnover in Europe, which is on the basis of FESE data denominated in euro. And when we compare the 9 months of this year and 9 months of 2020. So we can see that the change of Electronic Order Book turnover is plus 12%, which places us in the top of the stock exchanges in Europe. But I think that it's fair to say that in this comparison, the first quarter of 2021 had the greatest positive impact on the final result. So this first quarter was extremely good in terms of trading volumes on our exchange, while the first quarter of 2020 was rather quiet quarter -- this was the quarter before the COVID time. So please, the next slide.

The next slide is about investor activity on the cash market. And the first quarter includes always 2 holiday months, which are always weaker. And July this year was almost the same in terms of trading volumes like in 2020, August was weaker. But already September, just was much better, and we observed the return of investors to the market and their higher activity. But all in all, the results are minus 3.5% year-on-year and almost minus 19% quarter-on-quarter. After 3 quarters of 2021, we had 11 debuts on the Main Market, including free transfers from our SME platform, NewConnect, to the Main Market. On NewConnect, we had to enter to the but altogether. As for now, it's 26 growth. This is a good year in the primary market, and we also expect new debuts by the end of this year.

In the first quarter, we had also a drop in trading volumes on NewConnect. And what reasons we can identify? So the third one is the decreased interest of investors in COVID companies. It was the main reason of huge increase of trading volumes on NewConnect last year.

And also, the other reason is the transfer of the biggest and the most [ leading ] companies from SME platform to the Main Market. I mean here, Creepy Jar and Photon Energy, 2 relatively big companies by the standard of NewConnect. But I think that this is absolutely natural phenomenon, and we treat NewConnect as a kind of kindergarten and the transfer to the Main Market of the biggest and the most liquid companies, it's really natural.

The first quarter was another quarter with a significant development and growth of structured products segments. Also, passive investment has been more and more popular on Warsaw Stock Exchange. And it's fair to say that we are going to do our best to increase the number of ETFs in our offer. So this year, we expect 2 more ETFs, perhaps this year or at the beginning of the next year, 1 of them will be based on fixed income index and the other 1 on sWIG80 index. So this is the index of our small caps, some weak family.

As our CEO already mentioned, we started the diversification of Research Support Program. This program is very important for us because this is one of our ideas of how to stimulate increase liquidity in our market, and it covers currently 65 companies and including 6 from NewConnect and 59 from the Main Market and then, investment firms producing research reports in this program. So the exchange sponsor the report and make them available the of charge to the wide group of investors.

Our 2 programs, HVP, high-volume provider; and HVF, high-volume found, they've been operating with success and the share of the participant of this program was 14% in Q3 this year. Also, what makes us happy is the increasing number of broker accounts and almost 14,000 more accounts here today. So please change the next slide.

And the next slide is focus on derivatives market. So the third quarter on derivatives market was a little bit weaker than the previous one. It is because of the lower volatility. You have the graph presenting the volatility on the bottom on the left-hand side. So you can see that the first quarter -- it was a quarter with a low -- relatively low volatility and it had an impact on the trading volumes on derivatives -- in derivatives segment.

But year-on-year, we had 14% increase but I think we're noticing the change of structure of trading, in terms of products and clients. So in terms of products, so we can see the increase of FX futures trading volumes. We started from the lower basis. But currently, there is increased interest on pairs with Polish zloty, especially U.S. dollars to Polish zloty. Also, we have a very good market maker and the costs are really narrow. So the narrow stress on currency pairs. This is the possibility and incentive for investors. Possibility also of trading inside the spread of market maker.

And there's also the change of the investor structure on derivatives markets. So as for now, a 37% of trading volumes are generated by institutional clients, 34% by retail clients and 29% by foreign clients. At the beginning of the derivatives, almost 100% belongs to the retail clients, but the market just has been becoming more and more mature and the structure has been changing in the direction of more activity of institutional clients, rather the retail clients. But the change of trading structure and product structure impacts also our revenues. Unfortunately, in a slightly negative way because future contract based on our flagship index frequent. There is a top margin contract and in case of FX futures or single-stock futures, we charge less. So after 9 months in this year, the revenues comparing to the same period last year, and the revenues they are minus 11%. But we do our best to encourage new investors and traders in order to increase the scale of the market.

Please change the slide. And I would like also to comment on ESG because this is in our view, a very important trend on the financial markets and also, we treat it as a business-oriented issue. So our role is 2-fold. And 1 role is just to prepare our capital group because Warsaw Stock Exchange is a public company but also together with the company -- with the whole group, capital group, we need to include in our strategies ESG factors. And also, we need to be prepared for ESG reporting. So currently, we are working with external adviser. And we have already implemented several policies related to ESG, as we're going to be ready with the strategy. Strategy will be a part of our integrated report for 2021.

As a trade organizer, we do a lot to support the market and market participants, especially issuers in just adjusting to this important trend. So I would like to mention our new best practice of listed companies implemented in July this year. And they incorporate ESG factors. Also, we organized a big conference, ESG Warsaw. And we discussed a lot of things connected with ESG and ESG reporting. We have completed Phase 1 of ESG leaders competition. So we have the companies and also physical persons, which are -- which participate in this competition. And also, as I mentioned last time during this -- the investor conference we prepared together with EBRD, the practical guidelines on ESG reporting. And they are especially dedicated to our neat cups. And now, of course, we are planning to offer trainings around these guidelines.

And also, we plan some education on green bonds. The workshop for the potential issuers of these green bonds products. So there are a lot of activities around ESG. And I, as a person in charge of ESG and the level of the management board, I realize that this is absolutely hot topic now on the financial market. So it is why we have a good attention on -- to this topic.

Thank you very much. And Piotr Borowski, over to you.

[Piotr Borowski, executive]

Thank you, Izabela. Good afternoon, everybody. I'm Piotr Borowski, COO of The Warsaw Stock Exchange. I will present briefly our financial results for the third quarter of this year.

We are on Slide #9. The sales revenue of our capital group, which consists not only Warsaw Stock Exchange, but also the commodity exchange and BondSpot and [ clean ] class of commodities, increased by 1.8% year-on-year. And operating expenses were lower by 1.3% year-on-year, which makes a quite bright picture of this quarter because EBITDA increased by 3.4% year-on-year, and the net profit was on a quite high level, amounted to PLN 5 -- PLN 6 million and was up by 12.8% year-on-year. And if you look on the 9 months of this year, the net profit is higher by 14.6% for the 9 months of this year. The good results of this quarter was mainly due to the very good situation on the commodity market, which was combined with a lower activity and lower revenues on the financial market.

Next slide, please. So the third quarter, even though that the equity market was relatively moderate, modest. We achieved good sales revenue up 1.8% year-on-year and healthy EBITDA margin at the level of 53.6% and net profit margin at the level of 39.7%, which were higher than in the third quarter of the last year.

Next slide. Yes. The trading revenue was lower in the third quarter year-on-year. It was mainly due to the lower activity of investors on the equity market because the average turnover on this market was relatively low. It was 946% (sic) [ PLN 946 million] per session compared with PLN 1.3 billion in the second quarter. But I can say it's a normal situation because during the summer, the equity market is quite quiet. And it was -- the situation we faced in the third quarter of this year. The average fee on the stock market was on the healthy level of 2.22 bps, and it was higher than in the second quarter of this year.

The Slide #12. Listing revenue was on a stable, quite high level of PLN 5.5 million. It was increased of 21.6% when compared with the third quarter of the last year, and it was mainly due to the very active, very hot IPO market. Every quarter, we have new IPOs and SPOs on our Main Market, but also on the NewConnect, and we are very positive and very optimistic about this revenue line going forward.

Slide #13, market data. Market data is very stable, business developing very steadily. We are still acquiring new clients for market data, not only from the Warsaw Stock Exchange but also from our subsidiaries like BondSpot, commodity exchange, and GPW Benchmark, which is our index factor in. So in this revenue line, in the third quarter, we observed revenue higher by 4.7% when compared with the third quarter of the last year.

So it's about the financials now, and I'm handing over to Adam Mlodkowski, Deputy President of our Commodity Exchange, to present the situation in the commodity market.

[Adam Mlodkowski, executive]

Thank you, Piotr. Good afternoon. Adam Mlodkowski from TGE speaking. We are on Slide 15. At the beginning, I would like to say that third quarter 2021 was one of the best market periods in our history. And in detail, in the third quarter, the volume of electricity traded on TGE amounted to 62.2 terawatt hours compared with 53 terawatt hours in the third quarter of 2020, and 53.4 terawatt hours in the second quarter in 2021. This represents an increase by 17.4% year-on-year and an increase by 16.5% quarter-on-quarter. The time structure of contracts concluded in this market returned to the typical scheme before the start of COVID pandemic in 2020 when the first quarter was the best in terms of turnover.

Currently, the turnover is growing quarter-by-quarter, which was also supported by the rising prices on all new commodity markets. High turnover was recorded, especially on the spot market when the quarterly volume of 9.5 terawatt hours was the second biggest in TGE's history. This means an increase by 10.1% compared to the previous quarter and by 12.8% year-on-year. High turnover on the spot market is influenced also by international flows on the day-ahead market after the opening of new connections on the western and southern border of Poland in June [indiscernible] price of electricity in Polish zone become one of the lowest in the EU. And thanks to this in Q3 '21, Poland became the largest exporter of electricity since 15 years.

The volume of natural gas and traded OTG totaled 64.2 terawatt hours and increased compared to the second quarter of 2021 by 74%, and compared to the third quarter of the previous year by 82.1%. It was the result of high turnover on the forward market, which was a record-breaking quarter with a volume of 60.1 terawatt hours and an increase of 89.8% year-on-year and 97.7% quarter-on-quarter. Record-breaking turnover was the result of high demand on the gas market, low supply, and contracting for the current winter season. Trading volume on the spot gas market amounted to 4.1 terawatt hours and increased year-on-year 13.8% compared to Q3 '20 while compared to Q2 '21, it decreased by 37.3%. This decline quarter-on-quarter is a natural seasonal effect. And Q3 '21 became the best third quarter on the spot market in the history of TGE.

On the green certificate market, we've noted a decline year-on-year of 24.2% with trading volume 4.5 terawatt hours. There was also a decrease of 37% to the second quarter of 2021. The decreases are a continuation of trends due to the introduction of the auction system supported by renewable sources of electricity in Poland started more than 5 years ago. In the past quarter, there was also a decrease in the liquidity on white certificates market. There's a part of this certificate is still relatively low, which rises prices.

And the next slide, please. Revenues from trading. The revenues from trading on electricity market in the third quarter of 2021 increased by 27.7% year-on-year to PLN 5.3 million. It was the result of higher volumes of the forward instruments market and higher spot trading fees, which were arised since October 2020. The revenues from trading on natural gas markets increased significantly. In the third quarter 2021 they grew by 79.5% year-on-year to PLN 5.2 million similar to the trading volume, as I mentioned before, due to the significant growth of the forward market. The revenues from the property rights market dropped in Q3 '21 by 24.3% year-on-year to PLN 4.2 million. This comes from decline in trading volumes of green and white certificates. And of course, TGE has stable revenues from sources other than trading fees. In Q3 '21, they totaled PLN 3.7 million, which is an increase by 11.5%.

And the next slide, please. Revenues from post-trading service. In Q3 2021, there was an increase in revenues from clearing of 28% year-on-year that amounted to PLN 12.3 million. It is, of course, the result of higher trading volumes on electricity and gas market. As I described in the previous slide and the revenues from operating the Certificates of Origin register amounted to PLN 4.9 million. It means an increase of 26.6% year-on-year. This is mainly the result of higher volumes of [ redempt ] certificates and trade guarantees. And this was slide about commodity market in Q3 '21. Thank you for your attention.

Piotr, you might continue your presentation.

[Piotr Borowski, executive]

Thank you, Adam. We are on the Slide #19, operating expenses. Cost/income ratio was at the level of 54.5% in the third quarter, and operating expenses decreased by 1.3% year-on-year, which is quite positive. Even though that in this year, we'll pay a higher fee for our market regulator. In the last year, the fee was PLN 13.8 million while this year, it will be PLN 14.5 million for our capital group.

Salaries and employee costs were at the level of PLN 24 million, which was the increase year-on-year by 8% while it was a decrease by 9.2% quarter-to-quarter. We have increased cost in this year due to the new strategic initiatives, and they resulted also in a higher external service charges, which stood at the level of PLN 13.5 million. External services in the third quarter was an increase of 4% year-on-year, and increase of 2.1% quarter-to-quarter, and it was mainly advisory services dedicated to our new development projects. Next slide, please.

Share of profit of entities measured by the equity method, a very good result in the third quarter. Mainly our KDPW, which is a national securities depository in CCP contributed to this business line, and it was at the level of PLN 5.9 million and sharp increase by 30% when compared with the third quarter of the last year. KDPW Group has a very good, stable business, very favorable regulations for this group of companies, and high market activity resulted in a very good financial situation and results of KDPW Group in which we participate as Warsaw Stock Exchange.

And next slide, Slide #21, our consolidated financial statement. We can observe still very high liquidity position even though that we paid in the August of this year dividend in the amount of PLN 104.9 million, PLN 2.50 per share. We can also underline the fact that there is increase of current liabilities driven mainly by increase of liabilities in respect of the bond issue. So the part of our liabilities were reclassified from non-current to current status because our -- one of our bond issues expires in January next year. It was the last slide of our presentation.

[Pawel Wieprzowski, analyst]

Gentlemen, perfect. Thank you so much for this presentation. I have a couple of questions. Maybe let's start with your considerations over OpEx and CapEx for next year. You've mentioned that you'll be working on 2 large projects. Would you mind discussing the OpEx and CapEx decreases you see for the next year and the cash flow distribution over time regarding these 2 investment projects? And also, I am aware that there are some subsidiaries -- subsidies that you've secured for these projects, so if you could just mention the figures that you are going to spend gross and net, i.e., adjusted for these subsidies.

[Marek Dietl, executive]

Thank you very much, Pawel, for this actually set of questions. I will give a short intro, and then I will let Piotr Borowski to explain some details. First of all, indeed we're going to start 2 new projects next year, and they will consume both CapEx and OpEx. And basically, we use our -- currently with our cash to finance this VAT for exporting cost energy and for our strategic initiatives. So our cash is booked quite well into operations. The second thing, incremental OpEx and CapEx, some projects start and some end for example by the end of this year. Beginning next year we will finish the project, the GPW data. So actually, net will have 1 new project coming into our operations. But for more details, Piotr Borowski please share your insights with our callers.

[Piotr Borowski, executive]

Yes, we launched 2 big new projects this year. The first 1 is Polish Logistics Operator and the total budget of this project for the stock exchange is around PLN 19 million. And for the execution of this project, we received a subsidy from the National Center of Research and Development. The subsidy is PLN 5.4 million. So it is more than 25% of our expenditures. And this project will be executed next year -- in the '23, so in the next to 2 years. And we start from the January of the next year. The second project is Telemetria. It's an innovation platform based on digital -- sorry, dynamic advertisement insertion. It will be the auction system for the TV apps.

We signed contracts with the market operators and other stakeholders of this very interesting media market. The total budget of this project is PLN 33.3 million. The subsidy from the National Center of Research and development is for the 1/3. The subsidy is PLN 13.3 million. And also, this project will be executed in the next year and '23. So in the next 2 years, we will have these 2 new projects in execution.

[Pawel Wieprzowski, analyst]

Perfect. And as far as the OpEx and CapEx growth is concerned for the next years, round figures?

[Piotr Borowski, executive]

We don't disclose the exact figures, but we can say that it will be higher than this year because many of these 2 projects because most of the budget of these projects are CapEx expenditures, at least not of each product is CapEx.

[Pawel Wieprzowski, analyst]

Perfect. My next question concerns the dividend. Volumes this year are pretty strong. Are you considering adding on top of the absolute minimum dividend per share that you have assumed in your financial forecast for the next year, something? I mean, absolute minimum level is PLN 2.6 per share. Will you consider some additional amount on top of this PLN 2.6 per share?

[Marek Dietl, executive]

Piotr Borowski is our master of bold and he keeps the money. So Piotr can you elaborate on this context of...

[Piotr Borowski, executive]

Yes. Sure. Of course, we executed our long-term dividend policy, which assumes that every year, we increased the dividend at least by PLN 0.1. So that means that for this year, in the summer of next year, we'll pay out at least PLN 2.6 of dividend, and this is too early to discuss that it can be higher. It depends on many factors. So we would like to say that in the months of next year, maybe there will be more information available. So we don't give any more comments about this.

[Pawel Wieprzowski, analyst]

Okay. Perfect. Gentlemen, last year was pretty strong in terms of IPOs. This year seems to be also immensely good. Today [indiscernible] announced its intention to float the shares at the Warsaw Stock Exchange. Could you please elaborate a bit more about the IPOs outlook for 2022? Do you expect many new companies floating their shares? And also, will these companies be only the Poland space or from the region? Are you in talks with any new Polish companies that can consider listing at the Warsaw Stock Exchange?

[Marek Dietl, executive]

I will give a very brief intro and then Izabela -- Izabela, are you online?

[Izabela Olszewska, executive]

Yes.

[Marek Dietl, executive]

Yes, you are so perfect. I will then leave the floor to you. Basically, we are very busy listing companies, and in fact, it's a pleasure to meet some of them personally or via video conferences. And we generally are target so-called unit cores, potential unit cores, and some of them consider IPO pretty soon. Some of them are about to issue the prospectus. Some need another 2, 3 years. So basically, Poland and its region is very -- it's full of strong companies.

There's also a tremendous growth of Polish capital industry and venture capital firms are a great provider of well-prepared companies, well-fitted companies for IPOS. So we are very positive. And as I mentioned in my intro, there's -- those nor even more prospectus waiting the Supervision Commission for reviews. And as you can add one more thing. Last -- this week, sorry, we had an IPO of a company, which first we built up the relation with them via our training program, GPW Growth. So we see that our -- the synergies between the strategic initiative GPW Growth's training program for companies was one of the strategic initiatives that we see now that it's converting to a real IPO.

So what is promising here is that we have a very structured process how to approach companies. And this rigorous approach to sales of our services results -- gives -- coverts for us to fruit. So we hope that following conditions of GPW Growth will also result in the IPOs. Izabela, if you can chip in your comments, and maybe some details on our market basically.

[Izabela Olszewska, executive]

Sure. So I can only confirm what our CEO has just said. So this is a very good year for our market. And of course, we try to help the luck. And, of course, we try to use this time with very good valuation and good interest of the companies in the Warsaw Stock Exchange. So of course, we have some bilateral meetings with the companies, but also we organize some events focus on potential new issuers like Warsaw Exchange Innovation Day. These events, they gather the companies from innovation sectors, but also we created the segment of Family companies because this is the group of companies in Poland of our interest.

We think that these companies that they can be the potential issuers on our stock exchange. And also, we had a special program where it was being the public company, and there are many activities undertaken within the framework of this program. So we expect some debuts by the end of this year. And I hope not only the debut on NewConnect market, but also on our Main Market. And looking at the interest of the companies and also the number of prospectus with our Security Commission, we do hope that next year will be also good from IPO perspective.

[Pawel Wieprzowski, analyst]

Splendid. My last question concerns your latest project, which you've mentioned already during this conference call. I mean the addition of foreign stocks to your offer. The project was supposed to start in the fourth quarter, could you please provide us with an update of when do you expect the foreign stocks to be traded at the Warsaw Stock Exchange? How many stocks are you going to add in the first tranche of this program? What's your ultimate goal in terms of the number of foreign stocks that you want to have in your offer?

[Marek Dietl, executive]

Izabela, if you can elaborate a little bit on that promising project.

[Izabela Olszewska, executive]

Yes. So GlobalConnect, this is the name of this project. It's our priority project. And I can say that we have made quite good progress in this project. So as I mentioned last time on the investor conference as a stock exchange we will be ready with our operations aspect even in November, but this is the kind of complex project with several partners. And what is new now that currently, we have end-to-end tests with the so-called introductory market maker, one of the investment firm, and also our CSD, and the results of this test will be known next week.

Last week, we received some comments and remarks from Polish Security Commission on our rules and regulations. And it's fair to say that there is no obligation to have our rules and regulations approved by the Security Commission. However, we would like, of course, to consider all the remarks and make our -- and try our best to take them into account and include them in our regulations. So the next thing is with our CSD, and they are waiting for approval of their rules. And then it -- in connection with GlobalConnect. But it is a quite simple change. So I think that we expect that is ready very soon.

However, the document approval process is still ongoing. And the other point in the update is that we have signed memorandum with introductory market maker, we won. And the second memorandum is in progress. So it looks that we'll have 2 introductory market makers very soon. And they, of course, need to adjust their systems to operation on GlobalConnect. All in all, we still think that the start of GlobalConnect may be feasible this year. But because of some external factors, it can be delayed until the beginning of next year.

But we believe that we are on the home straight, so this is -- they are the last stage of this project. As I inform every year, we show that we'll start with some European names, and then we'll add the companies from the space. It's somewhat difficult with companies from the U.S. However, I think that now we recognize the whole situation and regulations, and we know what we need to have to bring these companies also to Poland in the sense, of course, of the trading on the GlobalConnect. So this is the update. And I think that we'll have this market operating very soon. It's not this year, so at the beginning of the next year.

[Operator]

We'll perhaps open the line for any additional questions from the callers. [Operator Instructions] Okay. It does look indeed like everything was exhausted and well understood, so I'll pass the line back to the management team for their concluding remarks.

[Marek Dietl, executive]

So dear investors, dear analysts, thank you very much for taking the time and listening to our presentation. Thank you to Wood & Company for organizing a conference and enriching it with questions. And on the screen, you can see next IR events. And in just 1.5 weeks, that is the 2nd of November, almost 2 weeks, we will have -- sorry, over 2 weeks, we have Santander Financial Sector Conference, which online. And in December -- 2nd week of December, we have Wood's Winter Wonderland, Wood & Company, Prague Conference. And then in between, please feel free to ask any questions to our IR team at [e-mail].

So thank you for now, and I hope to see you or at least hear you even for our next results calls, video calls, and we'll also recognize a kind of a strategic review as next year is the last year of our existing strategy and we'll be summarizing what can be done to allowance where we continue strategy. So thank you very much for now, and have a great evening. Bye, bye.

[Operator]

Thank you very much. This concludes today's conference call. We'll now be closing all the lines. Thank you.

[Piotr Borowski, executive]

Thank you very much.