Powszechny Zaklad Ubezpieczen SA
WSE:PZU
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Distinguished ladies and gentlemen. If you'll allow us, I would propose that we kick off. I'd like to welcome all of you at the review of the financial results of PZU for Q3 2018. I'm joined today, as usual, by Roman Palac, he's the CEO of PZU; as well as Tomasz Kulik, who's a member of the management board of PZU, and he's responsible for the financial division. I would like to say one housekeeping deal at the beginning.
I'm only going to be with you during the first portion of the presentation, because in a few moments I have to leave. I'm attending a conference in Rzeszów as well, so I have to go to the airport quite quickly. So I'll participate in the delivery of the presentation, but in terms of yielding your questions, Roman and Tomek will answer those questions. So in this spirit, if you'll allow me I'd go ahead and get started. I think we're familiar with the layout of the presentation. So at the very beginning, we should say that we're very pleased with this quarter. So this is the largest net quarterly result in the last 5 years.
On top of that, it's a result that hasn't been affected by any major one-off or nonrecurring event. It's a very healthy result. It's predicated on very solid underwriting financials, and that means it's repeatable. And so we can say that this quarter is something that elates us, but at the same time, it also shows the results of our work linked to the execution of the strategy over recent quarters and this portends well for the future. And so if we look at the first 3 quarters, we had the record-breaking gross written premium. We've not had such high premiums in the past. And so if we look at the quarter, we can see that Q3 was better than Q3 -- Q3 2018 was better than Q3 2017. It's up 1%. So even though it's only 1%, we can say this gross written premium is something that's a stable flow and what's 3% up in the mass segment. So partially, we've yielded some of the gross written premium in the life portion. If we look at single premium products, and so, my colleague Roman Palac will dwell on that in a few minutes. To some extent, this was a conscious decision because as I've indicated, we have record-breaking gross written premium. As a matter of seasonality, it's lower than in Q2, but higher than Q3 2017. And as I said, this does portend very well for the future. We have a stable level of premium in group and individual continued business. And so we'll say more about this subject in a few moments. In motor business, we have a stable market share despite some of the price commotion, and we'll also say a few words about that. And we can also say that we are maintaining a strong growth rate in terms of the number of health contracts. So I don't think I have to explain this. We have a very good combined ratio coming in at 84.3%. So this is improvement from the previous quarter, and it's substantially lower than what we've defined in this strategy. So we've got good profitability on the group and individual continued insurance. And in both cases, this is linked to the very good loss ratios. We haven't seen any major nonrecurring events that would affect our overall loss ratio. And so the net profit attributable to the parent company shareholders or equity holders, so it came in with PLN 1.007 billion. So it's up 47% year-on-year and 55% (sic) [ 59% ] up net of the banks. So if we look at the capital allocation, we have communicated this too and are quite proud that our stable outlook rating at A minus has been upheld by the S&P rating agency. And we would also like to emphasize that the capital strength of the group has been identified as -- been rated as AAA stature. So we cannot exceed greatly the sovereign rating. If we look at our return on equity -- so we had an exceptionally good result in Q3, 29.3%. Year-to-date, we're at 22.9% on ROE. So we can say that the goal in this strategy has been achieved. Even so, we're fully aware that this is an exceptionally good result in Q3, and we're not always going to be able to deliver a similar result. But we believe that the 22% rate of return on equity is highly probable in the 2020 period. So we have a Solvency ratio of 227%. So we'll continue to pad up that buffer and then we'll have an opportunity to think about how we're going to utilize that. The dividend per share of PLN 2.5, so this give a dividend yield to an excess of 6%. So it seems to us this is a good return on a company that's been able to deliver its results so stably, and at such a sound capital base. So we'll continue into our review of the overall market place.
So if we look at nonlife insurance, we have an increase of our market share of 0.6 percentage points over Q1, we're up at 35.4%. So if we include the reinsurance for our mutual insurance company as well as Link4, we can say that we have a market share of 37.3%. And so we have -- of the overall market's technical result, PZU Group has dominated the market with their 57.2% share of the technical results. So we're the most profitable company on the market. And so if we look at nonlife insurance, we can see price pressure. We can see that some entities on this marketplace that had certain profitable -- profitability buffers that were built up by the price hikes last year have utilized them to fight for clients also to battle us. Even so, we've shown that we're able to defend our market position, and retain customers and so our market share in the motor business is stable, while at the same time, we have a very satisfactory combined ratio, so 97%. And so if we look at other property insurance, you can see that we have some 69%. There have been no major events to affect our profitability. So -- or terms of the loss ratio. And so we can say this was once again another boring, but profitable, a quarter for the nonlife portion. Now I ask Mr. Palac to say a few words about the life insurance market and then Mr. Kulik will say a few words about finance. And then we'll come back to the strategy and then we'll go on to your questions.
So if we go smoothly to the life insurance market, so we have the data -- overall market data for H1 2018, and then we'll go on and talk about the quarterly results. So as you fully know, you've been observing this market with us for a quite a long time. So we can say that the market in terms of periodic premium is rather flat. We're doing very well because we're growing on this market, maybe at a slow pace, but we continue to expand our position. So we've improved our market position in the periodic premium segment. And so we completed the quarter -- sorry, Q2, so H1, we completed at 46.1%. And if we look at our percentage of the profit in the market, we're very high, 50% share of the sectors profit pool. So if we look at group and continued business, our strategy in this part of the market, we follow very rigorous discipline in terms of our work on the portfolio, we're not thinking about strong growth rates, but we're talking about the quality as we deploy new products. We've worked on this portfolio to ensure that it would behave in a foreseeable fashion in terms of its profitability. So if we look at the margin in this portfolio, we can say the entire profit was in excess of 26%. If we go back and look at how this business was behaving in previous quarters. So since 2015, we can say that Q3 has been the best quarter. On one hand, this is because of the lower loss ratio, but we also have a lot of work in terms of product changes and the cost discipline, which will be -- cost discipline, which will be discussed by Tomasz Kulik. So if we look at the individual insurance in turn, we have 2 different trends. So if we look at this portion of the market where we have investment contracts with single premium business. The overall market has been following. We're working with our banks in this bit of the market. Well perhaps the scope of decline or the extent of the decline wasn't as big as compared to other players in the market. But we're looking at the regular premium business protection products, and we can see rapid growth in this segment of the market. And so as our banks, Alior Bank, amongst others, has become more involved in the distribution of these products. And we've made a number of changes in our product offering, where these products are distributed through our agency network, and so we're building that out intensively this year. We're seeing the results of that. We're very pleased with the quality of this business because the profitability in excess of 19%. So you would agree with me that this is a very good level of profitability with business like this, with this type of mix.
So a few words about our health business. This is something that we've been investing in quite strongly and rolling out strongly. So if we look at the array of products. And then if we look at the service entities centers, so we have more than 2,000 cooperating centers, we've got a 63 on locations, we're opening up new locations in Warsaw, Kraków, Poznan and Gdansk. And so I would encourage you to utilize their services, because we've got the best quality on the market, I can say that quite strongly. We're working with 1,300 physicians and somewhat in 7,600 pharmacies. So we're trying to make sure that we have service accessibility across the market. We've got the highest amount of service executable team. So we're -- it 5 days for specialists, 3 days for general practitioners and so we have much faster service accessibility than even the public service or anywhere else. So we've grown year-on-year by some 30% if we look at our CAGR. In terms of the top line, we're growing faster in terms of the number of agreements we've signed with our customers. This shows that on one hand, we continue to follow the model based on tapping into our relations with the life business. This was one of the main products that we're offering to our corporate segment customers, and we're offering a whole range of health services to our nonlife customers. So Link4 has started to -- distributed our health products, and this has also improved the pace at which we're bringing onboard new risks. So we're on -- well on our way to achieve our strategic target of generating PLN 1 billion in revenues in 2020. So I give the floor to Mr. Kulik.
Thank you very much. So I'll say a few words about assets under management of third-party clients. What was the characteristic trait of the capital market? And which is affected the AUM we have. So on one hand, the valuation as well as the volatility, and this is affected the value of this portfolio. It's not a matter of the number of contracts or the amount of payouts, we're not subject to the same type of pressure as our competitors. For a number of reasons: the first one is, if we looking at asset management for third person -- for third parties, we have portfolios that have generated recurring results. So we're talking about pension products where we have regular monthly contributions being made to our [ fund Swiss ], we've got a recurring cash flow. On the other hand, if we look at the various concerns linked to the financial market, we're trying to respond to them so we have Sejf+ as a product. We started to distribute that product in the previous quarter, and it's selling quite well.
And it’s our response to the overall uncertainty and the transfer of assets by clients into safer, more conservative investments, so we have basically, very safe investments. We have the full capital guarantee given by PZU SA, then we have a platform where we have passive investments. We've got 2 different sales paths, we have 6 different funds, 6 different portfolios, and we can see that the incremental growth and numbers of customers is quite strong. We're seeing 35 to 40 new customers every day. So our sales target's linked to the due numbers of clients we wanted to attract. We can say that we've reached and exceeded our targets here. So if you look at our cooperation with banks, we have 3 different areas of cooperation. So the first area is the sales of products we had in the offering from the beginning of the year. So assets in the Multi Kapital product, which historically has been sold by Alior. Then we've added new products, both savings products as well as investment products. We're doing that in collaboration with Bank Pekao SA. We've also introduced this product called Sejf+ and this is sold by our -- we're also selling this through our -- so our -- through our portal so, which is called My PZU, and we're also selling it through our agents. And the CEO will say a few words about this portal in Q4. And then we have a third area, where we're optimizing our costs. So we have savings in this area, stemming from the utilization of an office space in real estate. We have better contracts because we're renegotiating them with our suppliers, because we have much more bargaining power in these negotiations, and we have savings as a result, which we're generating across the capital -- across the group.
So if we now move on to our financial results. And we can start with gross-written premium. I would like for us to be aware of the regular cycle of sales and how it's distributed across the year. The fact that quarter-on-quarter -- so we have lower sales in Q3 than in Q2. This is a matter of intra-annual seasonality. This is something that happens year in, year out. So this is not a deviation from any sort of standard or approach, and then we have growth year-on-year. And we should look at this in 2 ways; one, in terms of nonlife insurance, where we're growing in the mass segment by 3% in the corporate segment by more than 3%. So what we're most pleased by is the ratio of motor own damage to motor TPL is harder to sell motor own damage insurance. So it's a more demanding product in terms of offering and convincing customers. But long term, it generates a higher profitability and relations here are more long standing, and we're interested in having and cultivating long-standing relations with our customers. Then we also have nonmotor insurance we offer, and we've seen very good, robust growth year-on-year. So Mr. Palac has already talked about our health business. We're very pleased by this -- the ability in terms of our periodic premium business. And so, gross written premium -- so our top line is affected by investment products. But I would also like to emphasize that's nothing exceptional. Last year, we had above average sales of investment contracts in our banking channel. So in bank insurance, again, we're above plans and forecasts, but for obvious reasons, with the market like the one we have today, which is not supporting investment it's not conducive to investment behavior, so it would be hard to imagine that people would allocate an exceptional amount of their savings to invest in these type of solutions. So if you look at the results in Q3. So we've already said quite a bit about that, and you've already written about that subject. So we've had a very good quarter. We can say one thing, this quarter really shows how strong we are. It's not distorted by anyone one-offs or nonrecurring factors. Quite simply, it shows the underrating strength PZU has and how we're quitting business in treating risk assessment at PZU. So we're growing in terms of sales measured by gross written premium. The only negative impact is exerted by investment products we've talked about out that already. If we talk about claims paid, we're under Q2 as well as year-on-year. And so we can say that we've had very good development of loss ratio in nonlife business as well as in life business. We also see that the amounts paid in under new investment projects is smaller. And so that means, we don't have as much increase in our provisions. If we look at our investment results, with the exception of one single reclassification, we could say that we have Azoty Tarnów. We can say that we've been at this level across 3 quarters of this year. And so we're above where we were in Q2. So our underwriting activities as well as our investing activity have made a solid contribution to our results. If we look at costs, they're flat year in, year out, and we're very pleased by this in terms of the growth and this concerns our exposure to the total number of risks. And that calls for sales and post sales service as well as claims handling service, when we engage in claims handling. So we have a bigger portfolio, so have more claims to handle. So we can say this is a subject that requires some additional costs and despite that, nominally speaking, we, on a year-on-year basis, have flat costs. And with respect to Q2, we have a positive trend. So we can see a slight growth in costs of acquisition and -- so distribution. So on one hand, this is caused by higher sales. On the other hand, this is caused by a shift in the business mix. So we have more products with higher costs. So we're talking about nonmotor business, whereas, if we look at the motor products, we can say that we have a lower level of automatic renewals. So we have more and more renewals, where we pay our agents a commission in order to retain the portfolio at a stable and rising level.
So these factors enabled us to complete the quarter in PZU with banks. So we had a little less than PLN 850 million. So this is a very strong growth year-on-year and quarter-on-quarter. If we look at our stake in banks, we've exceeded PLN 1 billion. So that's the best result we've generated in the most recent 5 years. And so we have a very high return on equity, and this is also linked to the quality of our insurance business in life and nonlife. So a couple of words about our costs, where we talk about cost stated as a percentage of gross written premium. So you can see we've exercised a lot of discipline. So we've made some savings in terms of IT. Our processes -- we're automating them. So we're more and more becoming a technology company, where our resources are kept at the same level, and we're growing in terms of technology. So we're making some savings, but we're reallocating things in order to continue to develop technologically. So if we compare Q3 to Q2, we can see that costs have been kept under control. There's been no one-off in terms of recognizing a new salary model for employees. Basically, this will be accrued month in, month out at the same level. So we have lower costs training. And so if we look at the investment result, we've already said a few words about that. If we look quarter-on-quarter, if we compare Q3 to Q3 of the 2 years, '18 and 2017, so we have had the relocation of our exposure to Azoty, it's going through a capital no longer through our P&L. We see more exposure in debt in PLN as well as in foreign currencies. If we look at our equity strategy, there's one element, where we have held to maturity. So we have, historically, high profitability. And so we can see that last year, we had a tranche of PLN 900 million that matured, and so that had an impact on our ability to generate returns or yields, but Q3 was -- gave us a very good boost. If we look at our Solvency, we continue to be very liquid at 227%. The growth in our core business took place. At the same time, we have the contribution from the banks. And the third thing is, unfortunately, that we have a negative impact exerted by the flattening of yields. So in terms of how we see our liabilities -- insurance liabilities fleshing out in the future. So this has an automatic impact on funds. If we look at the requirements, we have a slightly higher provision as a result of counterparty default risk.
So thank you very much, Tomek. So to recap, and I'll shorten things. If I look at the results of this quarter -- so if we look at the ratios we have defined under the strategy, so we should emphasize that we've exceeded the threshold we had into the new strategy. We wanted to be above 20%. So we've got ROE at 22%. So this is something that we've been able to do in Q3 as well as year-to-date. So we have 22.9%. So we want to be above 22% in 2020. So we don't want to get used to or accustomed to having every quarter look like this. Even though, these results have been generated in a normalized fashion and are repeatable. And they're based on the core business of the group. Even so, we've also been assisted by the fact that there are no major losses -- claims, and so we should say that the results will not be always be at this level. Even so, we believe that this lends greater credibility to our strategy that we embraced at the beginning of this year, and at that point in time, we thought it was very ambitious strategy. So then briefly, if I look at the individual areas. So nonlife business. We have a slight deviation in terms of market share. We see it in 2020 at 38%, today at -- we're 35.4%. This is something we're going to fight for, because we want to have the appropriate magnitude and portfolio across the market. Even so, we will favor profitability and the technical result. And for that reason, we will not sacrifice profitability just to be able to achieve this matter, but we want to come close to, of course, to this metric. A much more important metric is the combined ratio. So we're at a very satisfactory level at 85.7%. So we can say, in fact, that we've been very disciplined in our approach to underwriting in terms of price control, and we've also done a lot in terms of our costs to premium at 6.6% -- 6.5% -- sorry, administrative expense ratio. So thanks to all of these activities and the cross-selling activities and acquiring new customers. Also looking at our individual insurance business. We believe that we're going to be able to rebuild the portfolio in such a way that we'll have 11 million clients in the life portfolio without sacrificing our margins in excess of 20%. And so this is something that we fully achieved. So the Solvency ratio is above the level that we have assumed, and this creates some opportunities for us. If we were to have in mind any opportunity to engage in nonorganic growth, so we have the funds to do that, but even so, there's nothing that we have to communicate to you today on that subject. If we look at our investments, this is an area where we should communicate better with the market, and emphasize to what extent the PZU Group on account of its stability and transparency is an attractive and stable player on this marketplace. So we're talking about the product we have, Sejf+, where you have a capital guarantee, so having in mind the turbulence we see on the stock markets, this could be an attractive alternative for customers. So today, they're migrating from banking loans, so we're going to continue to fight for this -- customers as they move towards bank deposits, and we want to offer at the PZU platform to them for that reason. We still have some work to do, and we're fully aware of that. The case is similar if we look at the risk-free rate, we've generated 1.2%, but there's still a bit of work for us to do to achieve the profitability we want to generate, which is 2% above the risk-free rate. And so Tomasz Kulik and our new Chief Investment Officer who came in from MetLife Robert Kubin, and he was previously the CIO in MetLife for the entire region. And so I think that his input is going to be very valuable to bring us closer to the level that we want to achieve. That's going to be quite attractive. If we look at health, as Mr. Palac has said, we're on track. And so if we look at the volumes and the margins we're generating, we believe that this is something that's achievable. We still have a lot of work to be done to build the network frequently, we're having to do this from the ground up, and we're bringing into the fold more and more friendly players. So the banks have performed well in this quarter. We're very much counting on both banks being able to execute the strategies they announced and that they'll be able to do that in upcoming quarters. And this should enable them to achieve their financial results, which will contribute to our results up to 2020. Of course, we're fully aware that this is linked to a market context. So the interest rate, above all, but even so, we believe that the banks focused on organic growth will be able to deliver these results. So at this stage, I would like to say thank you very much for your attention, and I'd apologize for having to leave you. And so any questions you have will be fielded by my 2 colleagues who will stay with you.
Marta Wasilewska from Wood & Company. I would like to ask you a little bit about the loss ratios in both segments. But perhaps let's do this one by one. So 84% combined ratio in the nonlife business, this is very much below the strategy. I don't know maybe you need to -- it used to -- but this is what I had in mind, is it used to or is still -- well this is very much below the level that European insurers would believe to be a good accomplishment. So 92% is a desirable level, 84% is way below that. Is this a result of the fact that prices rose and the levels of claims haven't changed? Or is it the case you gave once information about the number of contracts signed to understand whether or not the business is growing in terms of value or in terms of numbers? This would help us define that response to what extent is that matter of the fact that there's been a very small number of car accidents, and to what extent is it the case that the prices have been raised? And you're benefiting from that?
Is that it? Is that it for your question -- I'm sorry. I thought you were going to continue speaking, but -- because your voice hung in the air. So we're not changing anything in the strategy and we're continuing to say that the target level, the normalized level giving consideration to the full business cycle, and we know that there is a cycle. We're thinking about 92% as our target. And responding to your question, we're not going to raise the target for ROE or anything else, nothing's going to change. This quarter is a very good quarter, but we cannot assume that we're going to be able to continue delivering superior results just because of having good fortune. So in Q3, nothing characteristic happened in terms of mass events. In 2017, last year, the weather conditions -- weather's changing also in Poland. So in the spring and the summer we had major changes in temperatures, and so we have major storms, gusty winds, wind gusts. Remember what happened in Bydgoszcz and Bory Tucholskie, and we knew what happened in Northern Poland. So suddenly, well I believe that things like this will cease to exist is unwarranted. So we can't concentrate our underwriting around the idea of whether or not an event will occur or not to occur. Generally, we should expect that these events will transpire and they should be incorporated in the price. And this is how we should think about these subjects and this is how we should cultivate our relations with reinsurers. If we look at motor business, yes, it's true, we've benefited from historic price increases. Let me remind you that we embarked on a series of price hikes. We started a little earlier than the competitors.
As -- but if we go back to Q1 2016 and Q2 2016, we were below the market. We were able to catch mass, attract more customers, and so -- then once we got to the medium prices on the market, giving consideration to the competitive advantages PZU brings to the table, we were able to benefit to a great extent as a result of that pricing position, and that continues to be the case. And if we look at the motor business, we can say there is price pressure. We feel that price pressure, and we've already talked about that with you. So maintaining profitability at the level of 94%, 95% across the portfolio of motor and nonmotor business. And doing something more than that is not justified. We should come closer to 92%, otherwise, we're going to lose the head when we build the portfolio. Did I respond to your question?
Yes. So if we may in the future, if it's possible, if you could give us access to information about the number of customers you have on board?
I remember for quarter 2, for a year, we presented that, we can -- we've -- go back to that. It's not going to distort anything.
So I have a similar question to the life segment, because if we look at the ratio of -- claims paid to premium is much below the long-term averages.
Well you know the long-term averages, our expectation is that group business, in particular, will perform around 20% per annum, and there are 2 elements contributing to that: one, it's the development of our portfolio, so the main factor is mortality in the portfolio. And this quarter was an exceptional quarter in this respect. So we can say fewer people died, that's an optimistic thing. The other thing is that we're working on the portfolio in terms of getting the right prices, getting the profitability you want as we cooperate with our corporate clients. And at the same time, we're adding new products, improving the margins and the magnitude of the portfolio. So I -- long term, I believe that 20% is the right target. We'll have some quarters like this one where we're well above, whereas, Q1 was far below. We're closer to 16% in Q1. So the long-term basis is -- in target is 20%, and that's something that we should keep in our plans. Anybody else?
I wanted to ask about the premiums released -- of premium. So I should have said -- sorry, should've said provisions released because of vacations?
Well, since we're now at the end of Q3, the provisions fell, because employees are utilizing their vacation time in Q3. So some time ago in PZU, we made the decision to implement in terms of the incentives and the solutions we have in the group to have a mechanism that would promote the utilization of vacation or recreational leave. So we have a provision that was quite high historically in our balance sheet. We want to come down from a very high level measured by the average amount of overdue recreational leave per employee here in New York. We wanted to bring this down by say, 4 or 5 days. So in this period, we're now in Q3. Now we're in a totally normal situation, nothing outside of the standard run of business has occurred. So I think in 2018, on average, because it's not something you can manage in such a way that everybody in the company would take a vacation because by -- in terms of operations, that's not possible. But this provision should not grow. It's been following year in and year out because we make some incentives to promote the utilization of vacation time. So it's not to have these provisions on our books.
So in the meantime, perhaps, we have a question from the internet. Why do you believe that the results are repeatable? Having in mind the very low loss ratio and the favorable weather conditions.
Well, we don't have a conviction that it's going to be reoccurring. We believe this was a very good quarter. And so I think we've responded to that question.
Are you interested in taking over a 13% stake in Bank Pekao from PFR? And would this be doable for you?
It -- to retain a Solvency ratio of 200% and to continue payout dividend. So if it turns out that the Polish Development Fund is going to want to accept this fund, well, they said that this is not a strategic stake for them, this is a standard capital decision or equity investment. So in terms of our approach on this investment, we treat this as a strategic investment. Our goal would be to retain the total exposure at the level of the sum total of the 32% to 33%. So if the Polish Development Fund is going to want to accept this investment then we're going to want to take over their shares.
Would such a transaction make it impossible for you to retain 200%?
Well, it depends on the phase and the pace. So if the Polish Development Fund were to say that they wanted to leave today, then perhaps, it would disturb our Solvency ratio. And then we would have to do an additional issue of debt to finance that. Whereas, 200% is something which we have as a goal in the long term. We assume that it's possible for short or a femoral periods of time that we would have some sort of fluctuation around that long-term target. So this is not something that would be a cosmic anchor. So we're able to imagine a scenario in which, in a given quarter or half year period, we would subside below to 200%. So as long as we know why and we have a plan on how to return to that level, this is not a figure that we're going to want to defend and making irrational decisions or very costly decisions for the organization. We have another question from the -- about [ Zyciu ] plan.
What in terms of the banks, in the PZU Group, how do you understand the amendment of the banking law, where the Polish FSA would have the right to take over banks? And how do you see this as [ Zyciu ] plan?
I would respond to this question in the following manner. We're not today working on any transactions which would create the -- in large, the composition of the PZU Group as we know it today. And this is where I put the endpoint -- the period.
So in terms of potential changes in the shareholding structure of Bank Pekao S.A., you said that it might be necessary to issue some equity insurance or debt instruments?
Well I meant to say debt instruments that would be traded as own capital.
So you're talking about some sort of hybrid instruments, sir? So this is more of a theoretical question. We understand that -- I don't want to -- people to understand -- when you said, capital instruments and somebody could have thought you were talking about equity.
Okay, so you're -- we're not thinking about equity or writes off, we're only thinking about debt, okay, to avoid any misunderstanding.
So I understand that we've responded to all your questions. So we would like to thank you very much for your attendance. Bye-bye.