KGHM Polska Miedz SA
WSE:KGH
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
105.75
170
|
| Price Target |
|
We'll email you a reminder when the closing price reaches PLN.
Choose the stock you wish to monitor with a price alert.
This alert will be permanently deleted.
KGHM Polska Miedz SA
You don't have any saved screeners yet
Just a few technical points that we needed to follow-up on. Now welcome to the presentation of the Capital Group Results Presentation for the 9 months of 2019 of KGHM.
A few words of explanation. Today, we're a bit fewer exceptionally this week. President Chludzinski is unavailable due to a sudden family emergency. He will be available next week should you need any further comments from him. Also, KGHM is taking part in the biggest world event on the processing of metal, CESCO Week in Shanghai, and we are being represented as one of the leaders of the industry by Mr. Gruza, hence his absence today. So therefore, we have 3 people from the Management Board, Ms. Katarzyna Kreczmanska-Gigol, Professor, Deputy President for Financial Affairs, CFO; Adam Bugajczuk, responsible for Development, Vice President; and Radoslaw Stach, Vice President for Production. Good morning.
And traditionally, we will start with a short presentation to comment the results that we presented yesterday at the Stock Exchange of the Capital Group, the company KGHM Polska Miedz. And then we will have questions. I would like to welcome the online broadcast viewers. We're always available. You have access to the presentation. You can also ask questions during our presentations. We will be reading them in the Q&A session. If we do not manage to read them all, then, obviously, the answers to those questions that you ask here but we don't manage to answer will be found to the transcript for this online broadcast. So there will be full transparency of the communication in this presentation. We shall be beginning with the introduction. Over to you, President Stach.
The communication of the production and financial results for the third quarter. We would like to go through talking about production results, financials, key aspects and the performance and advancement of the initiatives that are part of our strategy, and then we will go on to the Q&A session.
To sum up the 3 quarters: first of all, 14% of production growth compared to the 9 months; 22% growth of the silver and TPM production; and the C1 cost drop, this translates to financial results, plus 14%, as you can see, for revenue and growth of -- in EBITDA. That's very good news.
On the left-hand side on the slide, you can see a drop in copper price. This is very important news for me -- for us, that given the 9% drop in copper price, we were able -- we have been able to obtain such big results, also a drop in silver price by 1.7%. But what is good news is that the dollar is strengthening.
Of course, we're observing the macroeconomic environment. This is a very important context. Copper price is decisive for our financial results. We are showing the ratio between the copper price and the dollar. For us, obviously, this correlation is very important. And if the prices are decreasing, then -- and it's negative. And if the dollar to zloty ratio grows, it is positive.
Why is this the case? We would like to present to you the level of uncertainty in global economy. Some views to be set. In 2002-2005, the war in Iraq brought the uncertainty level to 200. Today's level, if we were to look since 2011 to 2020, well, average is of 20 -- 250 upwards. And today's situation involving Brexit or the trade war in the U.S. and any communication, well, that displays that the market is very uncertain and it's very difficult to function in it. We're trying, however, to cope with all this.
Basic information for the whole Capital Group. As you can see, 530,000 tonnes; in the Polish plants, 2 -- 428,000 tonnes. This translates into EBITDA on the level of PLN 4 billion, which is 8% higher. Like as I mentioned, that is a very good outcome for our company after the 3 quarters.
This is a slide that presents all the parameters concerning production. As a matter of fact, they're all almost 80% after 3 quarters, so they surpassed the 75% threshold after 3 quarters. We will be going into detail in the further part of our presentation when we will -- when we are talking about budget performance. Now in net indebtedness vis-à-vis EBITDA, we are on the level of 1.8x, so we're maintaining the overall production cost also below the assumptions.
And now moving on to initiatives that we're putting in place as our strategy provided for it. Our strategy for 2019-2023 comprises this period but also the development of energy consumption from renewable sources, and that is planned up to 2030. So some of the projects have been put in time.
And now for flexibility, we have a project on optimizing production, for ecology, the extension of the bridge, energy efficiency. In 2017, the energy savings reached 30 gigawatts. In 2018, it's over 100, which is a very good testimony for the programs that we are running.
Now moving on to discussing in detail the production after 3 quarters. So the payable copper, 14% plus. As I mentioned earlier, we are slightly -- for KGHM International, slightly outside the budget, but the domestic production, we are maintaining the copper production on the similar level as for the 9 months of 2018. But as mentioned at our earlier conferences, our approach is slightly different to production. We're changing the concept. We're looking at the quality of the copper produced and that translates into our metallurgic production. The silver production is plus 200 -- plus 22%, and that's very good news.
The stock, we have been showing that for many times already. We have taken some steps to increase the output, and now we're showing you the levels of inventories. We are taking an analytic and practical and financial attitude as to the level of our inventories of copper, and we are trying to adjust our production to make sure that it's secure and to make sure that the financial results also is positively impacted.
Now Sierra Gorda, when we talk over the production, this is very good. We'll keep raising or improving the process for our production. We are improving the output, therefore, the production is 16% higher than what we have planned. There's a new attitude of the management to the renovations. We're improving renovation times, shortening them. So hence, our results are better due to better quality of the ore that we are obtaining in that plant. We are continuing our positive results in production, slightly lower molybdenum production. There are 2 aspects there, lower content and the molybdenum deposits are either present or not. You can see plus 44% of other metals.
KGHM International. Now it's minus 5%, but there are no bad symptoms here. This is the consequence of the symptoms of extraction in Robinson mine. We are now at a very intensive stage of stripping and that translates into these results. We're hoping that the fourth quarter will demonstrate that we are meeting the budget plan that we assumed early this year.
That is all that I wanted to present regarding production. And now we shall be moving to the financials and over to Katarzyna.
Good morning, ladies and gentlemen.
About our financials, the revenue of the Capital Group after 9 months of this year compared to the first 9 months of last year are higher by 14%. Where is that difference coming from? We have a bigger volume of sales to begin with, and that is the most important cause. And another important factor that has helped us to achieve such good results is the change of the dollar exchange rates. Regarding negative factors, lower copper price is the predominant one, but a higher sales volume plus a better dollar exchange rate has neutralized the negative impact of decreased copper price.
Now regarding the unit cost, the C1. When we look at the Capital Group, C1 was 7% lower this year compared to the first 9 months of last year.
Now looking at specific segments. We can see an increase in C1 cost only in Sierra Gorda, where this was linked to lower volume of sales of molybdenum. And this lower molybdenum content and lower molybdenum sales have caused C1 costs to increase. But if we were to bypass the byproduct cost influence, then we would have seen a lower C1 cost in Sierra Gorda than last year.
Now regarding the operating results. So adjusted EBITDA, this is higher compared to last year. And the difference is PLN 322 million, and that is an 8% increase. Looking at the segments here, we mostly see the surplus that has been achieved by the mother company because we see PLN 280 million increase in EBITDA in the mother company compared to last year, but please notice that both Sierra Gorda notes positive outcome as well as other companies. Only KGHM International has a lower EBITDA than last year, but this was mostly caused by a lower copper content in the Robinson mine. So looking at the total picture, we can see that the 3 quarters of this year have been better for us in terms of operational results than last year.
If we look now at net result of the group, the situation is even better because the result here is better than last year by PLN 690 million, which is 71%. What was the main reason behind it? First of all, we saw an increase in revenues, PLN 2.082 billion, with costs higher than last year, but the difference is lower than in the case of revenues because costs were higher but -- by [ PLN 1.833 billion ].
If we look now at the main factors, apart from higher revenues, the reason of the better net result come from the positive impact of exchange rate differences, PLN 253 million better result as a consequence. We were involved in joint ventures, that is extra funding for Sierra Gorda this year was better and, hence, PLN 152 million improvement on results from this source. This year, we established a few provisions PLN 168 million. That was the amount by which the provisions were lower. We also had other operating costs lower by PLN 5 million than last year and other factors, which improved the result by PLN 30 million. There were also some negative factors, among them change in cost by type. These were higher by PLN 1.227 billion. But together with higher revenues, the impact was much lower.
And speaking now of cash flow. Cash at the end of the third quarter was lower by PLN 200 million -- PLN 209 million than at the beginning of the year, and the factors behind it are the high investment levels. But I would like to draw your attention to the fact that in operations -- cash flow on operations, finance in total, the acquisition of tangible fixed assets because profit before tax and other operating cash flow after including change in working capital, PLN 2.481 billion. As regards investments of capital expenditures, PLN 2.314 billion. Please note that we in -- of 9 months, we had inflows from bonds that we issued PLN 2 billion, but at the same time, we repaid our liabilities at PLN 2.028 billion. So if it hadn't been for the positive factors, the level of cash might have been lower in the context of the scale of our operations. But finally, the difference is PLN 209 million.
As regards to net debt of the group. At the beginning of the presentation, we indicated net debt to adjusted EBITDA ratio after 9 months 1.8x, and that was because in this ratio -- in the calculation of the ratio, we included the influence of IFRS 16. And after adjusting by this financial reporting standard 16 to allow us comparison to the previous year, that is 1.7x, meaning that the increase was recorded but it was very slight. So if we look at net debt of the group after 9 months without the impact of this implementation of financial reporting standard 16, net debt would be PLN 7.781 billion. After taking into account the changes made to accounting regulations, we have debt at PLN 8.407 billion.
Ladies and gentlemen, on the 3rd of October, we had our debut at the Catalyst market. We issued bonds at the end of June. And on that occasion, we announced that we would float those bonds at the Catalyst market. We did as we had promised. And I would like to draw your attention to the curious fact that between the 3rd and 31st of October, from the date of our debut to the end of the month, turnover of KGHM accounted for 30 -- 20% of all the bond trading in the Catalyst market. So our papers are visible in the trading process at the Catalyst market.
Ladies and gentlemen, we are implementing our funding strategy, of which we informed you in December 2018. Then we informed you of the change to our strategy and our focus on financial stability. The consequence of that was diversification of sources of financing and longer maturity terms for our funding. The bond issue which took place at the end of June this year allowed us to change the level of our liabilities to financial institutions from 100% level of those liabilities to 24% of liabilities to capital market, 76% loans and credits from banks, both short term and long term.
And to stress that our strategy is being implemented in a thought-through and continuous sustained manner, I would like to stress the longer maturity dates of our debt. The activities that we undertook on the occasional bond issue and all the other things that we informed the market have allowed us to extend the average maturity by 2 years.
Thank you. That's it.
With regard to performance of development initiatives and deposit availability, our installations, that will be presented by Adam.
Ladies and gentlemen, if we look at our key development projects, you are probably not particularly surprised with the data here because these are recurring names, but that is characteristic of our industry. The projects are long term and the program of making the deposit available will last as long as KGHM lasts because it is our key project.
So now to move on to discussion in greater detail of our individual project. As regards Deposit Access Program, all our works are being performed as planned. That is progress -- the availability of deposit is exactly as we wanted it to be right now. In the future, that will be used to make successive fields available. As regards concentrate investment, that is -- that has been completed now. We are stabilizing the entire installation and optimizing its operations. That also goes for our major furnace. Everything is now working fine and we are optimizing the operational parameters. As regards the construction of the Zelazny Most, here works are progressing on schedule and within the budget. And the same goes for the program of alignment with BAT Conclusions. We see no threats in this area. In a nutshell, that would be it as regards our key investments.
And the CapEx performance, which is also at satisfactory level given the point of time we are at, the fourth quarter always means an acceleration and consuming capital expenditures budget. So here, we expect positive completions.
Thank you.
Ladies and gentlemen, we've presented our slides on the third quarter. To recapitulate, with the existing macroeconomic environment, KGHM results are very positive, production results translate into financial ones, and we will continue along those lines.
Thank you for your attention.
Ladies and gentlemen, now we will have a question-and-answer session. Please remember that the answers will also be available in the script. Also, answers to the questions which we won't manage to answer today will be provided there. Thank you.
Pawel Puchalski, Santander. I represent Santander. I have 2 -- a few questions. Congratulation on your strong volume in the third quarter. And my basic question is, this volume on copper extraction and the production of electrolytic copper, are they repeatable for quarter 4? And now if I may, I'd like to get some guidance for the future year, for next year, in terms of your volumes. Are you going to assume a similar budget as this year? Or is there going to be a change?
Responding to your first question regarding quarter 4, we see no threat as far as the budget's performance is concerned. Now for 2020, according to our strategy, what we want to do is to maintain the level of 450 from mines and 400 -- 540 of the electrolytic copper. This is our baseline for the future years.
Maybe let me be more specific. It is very good that you don't see a threat for the budget being performed, however, either we repeat the very strong quarter 3 and then we are significantly over the budget or we performed the budget, which would then imply a relatively weak volume in quarter 4. That is why I would like to know whether -- which side you are on. Are you predicting strong volumes as in quarter 3? Or are you just expecting to perform the budget?
As the third quarter would demonstrate, we are on the good side and on the right side.
I am glad to hear that. Now if I may add just a few questions. The overheads, employee costs, when you look at the cost of the mother company, that and the cost of underground works, the question is whether the cost, the overheads that are growing significantly in quarter 3, is that a one-off for quarter 3 or not?
And another issue, I've noticed that you have demonstrated a very strong increase in the cost of proprietary work, whereas the volume of underground work was quite the same as in the previous quarter. So has something happened? Can you see any pressure? Or are these just one-off incidents? Or is there a new trend visible?
Okay. About the overheads, perhaps, well, in this area, overheads grow as does the budget. We are bound by our contract with our staff, workers, so hence, we had foreseen this growth in overheads. We have all anticipated all this in our budget.
Now as regards the costs after the 3 quarters and for quarter 4, we see no risk here in terms of the performance of the budget.
Now regarding the cost of proprietary work, what you have asked about -- that you have asked about, sometimes, we are trying to get new access points, new technologies have to be implemented and some are construction work. This might trigger extra works. We had new contracts as well. We're not expecting a further increase in the quarters to come. This will be maintained. So no further peaks will be present in the area of costs.
Just perhaps one more point. I'd like to explain why this is predictable for us in terms of overheads. After the 3 quarters, we have increased a provision because our contract is such that the bonus is calculated depending on the performance. And since our performance was better than what we had budgeted for, then automatically, a provision was made to pay out the bonus. So hence, you might have noticed a peak.
All right. It was useful. I'd like to know as well the nominal value of these additional provision made in quarter 3 and about underground work and the cost thereof, you said that we should be expecting no further peaks. So I understand that quarter 3, the very high level, that is the new level that should be a reference point for the future growth of costs?
No, we're talking about 1,200 meters underground and the infrastructure needed for that. We are expecting that those will be different rocks. Some of the constructions are more expensive than others. We are not expecting a further increase. The fact that they looked the way they did in quarter 3, well, unfortunately, that was due to the specific nature of the stages that we were at, at the moment. But there will be no further growth in costs for the proprietary work.
Now regarding the nominal value of our provision, unfortunately, we do not disclose such detailed data. This is included in the overall value of the provisions that we have made. Unfortunately, I cannot disclose that.
All right. Last question from me. I remember the strategy of KGHM that said quite explicitly that you were going to embark on renewable energies. Now the extraction and energy sectors are under the control of one ministry. So my question is whether KGHM would deem it interesting to launch an offshore project or a nuclear project?
Let me make reference to the presentation, where I said that our strategy provides for the development of this area up to 2030. We are still carrying out the strategy by trying what we can do and where. Where we have some letters of intent already signed, we need to wait for decisions to be made as to where we are going to go further, provided, of course, the economics are favorable to us.
You're invited to ask further questions.
Citibank. This is our last meeting this year. If you could please comment on the energy costs possibly next year and, ideally, if you could just make reference to 2021.
Energy prices, we will not be making any comments because we're not the ones to set them.
I meant the costs that you are expecting.
Like I said, we have ISO certificates that obliges us to have energy-saving program 50001. We have almost 100 gigawatts of savings. We also produce energy from blocks, and we assure almost 20% of our needs from there. We will be growing that area. Renewable resources are the future, and this is the reference I would make to the possible costs.
Let me repeat the question. What are you going to do? Yes, coal, that's what you said, but you've already said that before. What I wanted to ask is to what extent we can expect energy costs to grow in KGHM.
Yes, in KGHM, unfortunately, ladies and gentlemen, we may not say that because this would be a forecast. And forecasting is not what we publish, what we communicate. Despite the major turbulences this year of energy prices, power prices, we have dealt with that issue perfectly, so we're not really afraid of next year. We have 25% of our own energy sources, plus we have a lot of contracts already booked for future -- for next year, plus we have a very well and operational department that can buy energy at spot, transactions at very good prices, which is confirmed in the performance this year.
mBank. Two questions. The compensation for energy costs, was that included in financial -- in the financial report for quarter 3? If not, will it be there in quarter 4? And what is the amount that we should be expecting? What I mean is the electricity law that compensates for higher costs in the first semester.
Regarding quarter 3, we have been given the compensation, and that cash inflow is visible.
Could you please disclose the amount that has been put in the books?
Good morning. Janusz Krystosiak. I'm sorry, I was late. The journey doesn't always take as long as you have planned. Let me just make a supplement. This is news, and there are some details. As has been mentioned, we have received -- we have booked the transaction on estimation of the revenue asset in the first semester. That was PLN 34 million. And in quarter 3, we had an additional inflow of about PLN 20 million. And the difference, as a matter of fact, what was disclosed in cash was PLN 7.9 million. But no changes in the P&L. This is the return after the settlement. So in the first semester, the estimate following the coming into force of the energy law, we still were at that point considering which option we were going to use and following the entry into force of the act. Referring to compensation of CO2 emissions, we calculated and we received a compensation in the amount of PLN 50 million. And like I said, in quarter 3, this was just cash about PLN 9 million.
I have one more question. Please give me some clarification on Slide 15. You show a successive quarter of decrease in the stock of anodes and concentrate copper. And if we analyze financial statement for the third quarter of the whole group, working capital grows by about PLN 300 million, and net debt also increases in dollars. So -- but it's not only the exchange rate effect. What are the reasons behind it? What drives this growth in working capital?
I would refer to the level of stock. Of course, we want to decrease it. Some of stock is accumulated when we expect downtime on our installations, and we try to go down to the minimum levels of stock. And of course, if we reduce stock levels, we have a better financial result. And I think this might be an answer to your question.
And what would be the technical level of the stock of concentrate copper and anode stock?
The stock that we need for the functioning of our mines, metallurgic plants is about 60% of concentrates that we need today, and we are still analyzing whether this percentage could be lower, but that is a normative stock versus specified. And anode is about 3,000 to, let's say, crisis level.
Robert Maj, IPOPEMA. I have a question about HR cost because they amounted to almost PLN 590 million, which is PLN 70 million above expectation. Can we assume that the PLN 70 million correspond to the provision for bonus? And can we assume that in the fourth quarter, there will also be such a provision, and as a result, HR personnel costs will be about PLN 1 billion or even more?
First of all, we have the impact of actuarial provision. So on the one hand, we have the actual increase in the provision for bonuses, and on the other hand, we have this actuarial provision.
And one more question. There was extra funding for Sierra Gorda, PLN 106 million. That is your share in the loss, as you disclosed it in the documents. Normally, the extra payment to Sierra Gorda occurred in the second and fourth quarters. Why this year, it was in Q3?
That concern repayment of senior debt PLN 160 million, and another amount was the repair of a water we had at waste site.
But repayment of senior debt plus operational activities and loan on balance to Sierra Gorda grew to PLN 490 million. That was an increase quarter-to-quarter. And I understand the difference comes not only from the exchange rate of dollar to PLN, but you also reduced the write-off. Do you expect that the value -- recovered value of the loan would be greater because Sierra Gorda generates better results? Or was it only the effect of exchange rates?
I will invite our Chief Accountant to take the floor.
This comes not only from exchange rates but also change in discount rates. We experienced a slight decrease in discount rate. And as a consequence, the balance sheet value of the loan increased slightly. However, I think it's premature to draw far-reaching conclusions as to what might happen with the recoverable value of those assets because if anything happens as we normally do and as we are obliged to do, we will inform you in our current report.
And that was my next question. Can we expect at the end of the year some revaluation of Sierra Gorda, which now represents PLN 4 million in your balance sheet, which is almost 0?
I think I have already answered this question. Now we are at the moment when we are finalizing our budgets and long-term plans for our foreign assets. And on this basis, we will analyze the assumption. Afterwards, we will inform you whether we will have tests on impairment with a possible effect up or down. But today, it's premature to discuss it.
And I have one more question about Ajax Project, the project which never saw the daylight as the result of protest. You mentioned you were working on convincing the local inhabitants to change their attitude. Can anything happen in this area? Or should we not expect any development here?
With regard to this project, we are trying again to obtain environmental permit. We are again in talks with Kamloops inhabitants, and that is the information I would like to share.
How long might this process take? Are there any deadlines set? Or...
Nothing has been defined yet. It's difficult to talk about any specific date because it's beyond our control, but the sooner the better.
Any other questions?
I have one question that was asked online. Daniel Major. Can we provide any guidance as to the CapEx expected for 2020? And do we expect a reduction in per unit cost next year in Poland?
As for CapEx, as we informed previously, we do not expect any major differences up or down in this regard. We are performing those key investments that are necessary and key for us in the development projects. And as a consequence, we follow the budget. We do not expect any major changes here.
And the answer regarding per unit cost, the C1, of course, we follow the budget, but we also introduced a number of innovations, automation changes to extraction structures. And we are making all efforts to reduce the cost as compared to what is assumed in the budget.
Another question also from Daniel Major concerns the expected co-funding for Sierra Gorda in the fourth quarter.
I will start as the guardian of compliance with information obligations. We have a plan of financing for Sierra Gorda. And at the moment, we are below this plan. If another tranche comes, we will inform you that. At the moment, we have no information to share any additional funding for this asset.
And if there are no further questions from the room, there was one question more online concerning the information published in the media yesterday. That concern the potential impact on our operations of the situation linked to the appearance of water at some sections of our mine in Polkowice.
The information that was published is not fully true, so I'm happy that this question was asked because that gives me a chance to clarify this. It was -- our main section is Lubin, Sieroszowice, Polkowice. In all those mines, we have mining sections in G62, in one of the fields that we exploited. We had an increase in the flow of water. And we had to disconnect this field 62. We had to prepare the installation to pump out water. So there is no risk of the mine being flooded. Section 61, which is adjacent to the one that was affected, was also put out of operation. We wanted to make sure that there is no flooding there. All our services are on alert. Everybody is informed. There is no immediate risk, and that is why we did not issue any official information to that effect.
Ladies and gentlemen, unless there are further questions from the room -- yes, there is a question.
Might be an obvious question to ask. Is the Management Board planning to pay a dividend? And what will be the amount following this year's performance?
Well, yes. This question is asked repeatedly and what we say is that we do not change our policy regarding the payment of a dividend. We are maintaining things as are, according to the policy that has been adopted.
But last year...
This is also our recommendation. Please remember, we recommend, but it is the general meeting that confirms the decision.
But this year, there was -- there has been no change in the dividend policy. And as far as I remember, the dividend has been 0 -- pretty around 0. So what is your dividend policy, may I ask? Is it the same as last year?
Ladies and gentlemen, the year has not finished yet. We have yet -- not yet completed our reporting year. We cannot say with full certainty what the performance or the outcome will be. Once we close our books for the year, we will be able to specify the results. And then let me assure you that the management is fully willing to have a dividend company to -- for KGHM to be a dividend company despite the exceptions that have been observed in the past and despite the fact that the dividend was not paid for last year. This does not, however, change the fact that if the results permit and the macroeconomic situation permits, we will be recommending that dividend be paid. So we're not changing our approach.
If I may, just to make the dividend policy more tangible as a notion, our dividend policy provides for the payment of up to 30% of net profit of the dominating entity. That's what needs to resound when we talk about dividend policy. This is the phrasing that we've got in it.
Ladies and gentlemen, any other questions?
Yes, just a short one, please. The CapEx plan, will you be able to perform it this year?
Yes, we expect that it will be at a satisfactory and much higher level than last year.
All right, in that case, please feel invited to help yourselves to the refreshment. If you -- if we have any further questions later, we will place them in the Q&A session in the transcript to the online broadcast so that you have full transparency in the answers that we have given. We are available, the Management Board and experts alike, together with the team, so please feel invited to approach us and talk to us. Thank you very much.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]