Q4 2019 Earnings Call
[music].
Thank you for joining us today and welcome to John as you try International Limited fourth quarter 2019 conference call and webcast. Joining us today are mr. wavering Ho and Dr., Thomas phone, President and Chief Financial Officer of CYI, respectively.
In addition, we also have and attendance Mr. Kelvin Lai.
Hi.
Before we begin I will remind all listeners that throughout this call.
Statements that may contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
Words believe expect anticipate for Jack targets optimistic confident that continue to predict intend aim will or similar expressions are intended to identify forward looking statements. All statements other than statements of historical fact, our statements that may be deemed forward looking.
Statements.
These forward looking statements, including but not limited to statements concerning the company's operations financial performance and condition are based on current expectations beliefs, and assumptions, which are subject to change at any time.
Company cautions that these statements by their nature involve risk and uncertainties and actual results may differ materially depending on a variety of important factors such as government and stock exchange regulations competition, political economic and social conditions around the world and in China, including those discussed in the company's.
Form 20-F under the headings risk factors results of operations and business overview and other reports filed with the Securities and Exchange Commission from time to time all forward looking statements are applicable only as of today. They are made and the company specifically disclaims any obligation to maintain or update.
The forward looking information, whether as a nation nature contained in the release made on todays call or otherwise in the future.
Mr. Hoe will provide a brief overview in summary, then dr. phone will review the financial results for the fourth quarter in fiscal year ended December 31 2019.
Thereafter, we will conduct a question and answer session.
For the purposes of today's call the financial results for the fourth quarter and physical year ended December 31, 2019 are unaudited and it will be presented in RMB and U.S. dollars. All the financial information presented it was reported using international financial reporting standards as issue Buddy International.
Accounting standards Board.
Mr. Hoe. Please begin your prepared remarks.
Thank you Kevin.
For the fourth Wassa heme 19.
China GDP was 6% same growth rate that's in that could cause us any 19.
Well the full year to 19.
GDP growth was 6.1% resources lowest annual growth in the last 29 years.
According to data reported by China Association Awesomely deal when this extra yeah.
In the fourth quarter opinion 19.
It feels a financially equal excluding gasoline powered electric powered vehicle.
Increased by 2.9% overall compared with seven quarters than you see.
This growth included a 2% sales to increase their trucks that win and attempt by 4% increase in the but.
You need still Oh baby duty truck.
Increased by 13.6%.
Oh, the medium duty truck sales.
Aligned by 10, plus 12% compared with diesel fourth quarter of any 18.
Maybe just the bus sales increased by 17.9% and medium duty, but sales rose by its equivalent per se.
The city in fourth quarter.
Well the full year perspective.
That is safe thoughts from you and show that.
Overall unit sales of also in China fell 8.2% in Sydney 19 from city in the.
Although a 35.8 million vehicles, so is the new Nike <unk>.
This decline follow that 2.8% decrease in city, we see.
In the commercial vehicle.
Pocket.
Yeah.
That's reported opinion lighting.
And unit sales, excluding desolate follow the electric powered vehicle.
Increased by 4.5% overall.
He put any 38.
This decrease included a full by 7% decline if it could trucks that one and a two by 6% decreasing in there.
Phil.
Sales of heavy duty truck.
And Chris I took a lot the thing while the medium duty truck sales declined by 31.77.
Heavy duty, but sales did increase by 8% and medium duty bus sales declined by 2.3%.
Although sales have been affected by slower economy broken brilliant idea.
In addition, the first stage of the nationalistic then we should send the.
Well implemented mission White in July 1st I'd like theme for gas engine related to equal.
This early launch of the nationalistic emission standards well gas engines is well ahead of the mandatory implementation of diesel vehicles will be a false between July for liquidity and July 31.
In the fourth quarters in the United I with other engine sales were 94649 unit.
Thank you very 3881 unit.
For further than 18.
Our overall unit sales.
It to the truck engine market little down.
4.2%.
We achieved so for the 9% growth in the heavy duty trucks, and just still far surpassing.
30, plus 6% sales increased in the heavy duty truck market.
Neil natural gas.
They should 60 trucks and use will well received the marketplace at a full quarter off in the United as demand for that should the six inches et cetera that use the mandate Curry national implementation.
Oh sales to the boss and give market increased by levels by 7%, which exceeded the step up 4% girl and really by Phil.
This growth was led by double digit growth in both the heavy and medium duty bus engine market.
Our overall off road sales increased by 11.9% in the fourth quarter.
After the United with double digit growth.
Industrial and good too.
Fourth any light in Europe, our engine unit sales were 336148 unit.
But we try to 75731 units into the 18.
I'll try and give the sales were down 1.2 per se, but outperform of 4.7% decline in the overall truck markets.
Oh sales to the heavy duty truck market achieved double digit growth compared with 70 80.
But India sales decreased by 10.1%.
Ill sales with a light duty bus market dropped by double digits.
I will overall off road sales increased by 9.3% in pretty 19 led by double digit growth industrial engines.
As a technology leader, we design our growth strategy by developing next generation Angie.
For the got one mandatory implementation, which enable us to capture early orders and establish a leading market position.
For Trytwenty, we have commercially introduced a portfolio appeal diesel engine model a plan with the on road initial six emission standards for the launch of finishing up six vehicles by OEM customers.
In addition, our model Weiss of 68 engine.
Well the first domestic in diesel engine. So they fight to comply with the more stringent, especially the six via emission standards.
Which is expected to be mandatory.
In July so he can treat.
Already the sales growing sales of our less the fixed gas and just increased.
Penetration into the heavy duty truck engine market in the fourth quarter 2018.
Oh National six Elisha standard technologies has also led to our newly.
Form for the balance sheet with some key holding a leading producer activity the crops in China and we felt on.
Total company.
Group for without support for National six compliant engines and technology overseas market development, and new energy product development.
We have to go the other steps to enhance our growth opportunities in the future.
We are at the development stage are producing our first for new energy products.
And we anticipate a funding into a larger portfolios.
New energy product in the future.
Utilizing different technology design I'll first new energy products. The next generation hybrid power train was seamlessly integrate electric motors internal combustion engine.
Enhanced hieko mileage and overall efficiencies.
We have identified a number of end market application for this new powertrain products, including semi trailer dump truck.
Mass transit buses trucks rubber tired gantry crane and others.
Also our JV Airbus by Chile, each high exhaust technology Company limited, it's ramping up production of this new exhaust emission control system.
Our commercial vehicles to meet China National six and tier four emission standards.
This emission controls will be using our own inches so as the available for sale.
We achieved double digit growth for international sales in both.
The fourth quarter and for the fiscal years and for the United.
We have enhance our full potential by creating a dedicated operations.
After further market share and I'll leave regulation that now.
Our new business enterprise their focus on wholesale and retail distribution.
Medical advisory and consulting.
And do maintenance and repair services that attract new customers.
We also increased though ownership of white to Europe operations in 2019.
We will on the S O Y CFO a different you want equally 19, China agricultural machinery industrial for that go award.
Within this prestigious award at the end agricultural and farm equipment conference validates our effort to improve.
The quality and performance of Chinese cultural missionary.
The model Whitey for a is a 70 horsepower again agricultural vehicle engine.
Featuring the highest thought.
The marketplace.
We will also or not as China as you try in good propel.
Co sponsors that very prominent veteran veterans.
And your families in the seventh year anniversary celebration in a national day parade in Beijing.
Many of the giant electronic screen using a celebration use TJ power generators as well.
Our balance sheet remains strong.
He an opinion 18 year.
Cash and bank balances were RMB 6.4 billion or U.S. dollar 916.1 million.
And track trade and builds receivable were RMB 7.7 billion or U.S. dollar one for 1 billion.
It wouldn't trees were RMB 2.8 billion or your solid quarter 4.8 million.
Due to our strong balance sheet and cash flow issue. The issue a deal cash dividend of U.S. 85 cents per share in July opinion 18, the share of success with our shareholders.
Our new Empire, Egypt, Buffalo that meet the actual fix and tier four emission standards.
He is ready for full production as demand growth. After these tenders are being implemented across China.
Our technological leadership in diesel natural gas and hybrid engines combined with our extensive network continues to attract new OEM and pockets.
On a separate note on must then Felica E a dividend for the year than in 19 of RMB 402 million 40944 was approved by GYMCL shareholders for all shareholders.
China, you try has a 76.4% ownership of QM sale and the dividend will be paid to the company in due course.
This dividend attest to the financial stability.
In coming months of the company's long term shareholder.
During the current financial current difficult market environment.
Looking into 2020.
The outlook is somewhat cloud at present.
However.
We remain hopeful that limited credit agreement between China, and U.S. will be beneficial to both countries' economies in the near future.
The Corona virus is having an economy impact on the first quarter of any printing.
But we believe its impact will gradually diminish the second quarter and we will regain sales growth in the fall in quarter 320.
The Chinese government will likely for the implement policies improved economic recovery.
With that I will turn the promise to go where the financial.
Thank you we me.
Now, let me review, our fourth quarter results for 2019.
The revenue for the fourth quarter of 2018.
Decrease.
By 35.4 person to RMB 5.7 billion U.S. dollar.
840.6 million.
[noise] RMB 4.5 billion for the fourth quarter of 2000 meeting the revenue increase was mainly due to a change in mix.
According to the data reported by China Association.
More being manufactured C.
In the fourth quarter 2019, social commercial vehicle, excluding gasoline powered electric power Dk increased by 2.9%.
So increased by 2.0% week heavy duty truck sales increased by 30.6%.
Sure I am sure heavy duty truck engine sales in the fourth quarter 2019 increased by 49.8%.
You can box market decreased by 10.4% into fourth quarter 2019.
Jim Shell bus engine.
Sales growth exceeds the market growth.
Sales of medium duty boss and didn't grow significantly.
Jim So Oprah NGL shows.
Most in the portfolio so Nike.
Led by higher sales in the industry engine market.
Gross profit increased by 88.5% to RMB 1.1 billion us dollar.
158.8 million compared with RMB 0.9 billion in the fourth quarter of 2018.
Gross margin was 19.5% in the fourth quarter 2019, compared with 19.0% into fourth quarter 2018.
The growth in the gross margin was mainly attribute to product mix and was.
Partially offset by higher production costs relate to be nationalistic engine in the fourth quarter 2019.
Other operating income was RMB 104.4 million.
Dollar 50.0 million.
Compared with RMB 64.4 million in the fourth quarter 2018.
The increase was mainly due to higher interest income in government grants.
Research and development R&D expenses increased by 111.7% to RMB 228.0 million.
US dollar 32.7 million from RMB.
107.7 million.
In the fourth quarter 2018.
Hey, R&D expenses.
Mainly due to the further development of the portfolio.
Next generation National six NPL for engine so.
Improvement edging quality and performance.
In the fourth quarter 2019.
The total R&D expenditure.
Including capitalized development costs will RMB 297.7 million U.S dollar 57.0 million and it represents 7.0% of revenue.
Okay, We RMB 232.9 million, representing 4.9% of revenue in the fourth quarter 2018.
Selling general administrative SG any expenses.
Increased by 36.5% to RMB 663.2 million U.S. dollar.
5.1 million from RMB 485.8 million in the fourth quarter 2018.
As she any expenses represent 11.7% off revenue compared with 10.7% in the fourth quarter 2018.
Hi.
She any expenses.
We will mainly attributed to higher.
Warranty expenses and higher impairment loss on trade Michelle.
In the fall 2019.
Operating.
Profit decreased by 3.6.
Let's turn to RMB churn and that.
Turning to 80.8 million us dollars 46.0 million from RMB Shane 32.6.
Yes.
Fourth of 2018.
The operating margin was.
5.6% compared with 7.3% in the fourth quarter 2018.
[noise] finance cost decreased by 12.8% to RMB.
27.1 million us dollar tree 0.9.
Really from RMB 31.1 million in the fourth quarter of 2018, mainly due to lower interest rate on both.
Thanks, Bill rate and view discounting.
In the fourth quarter 2000.
Mike input so net profit attribute to China is high shareholder increased by 9.3.
Let's send to RMB 299.6 million U.S. dollar 30.0 million from RMB 191.8 million in the fourth quarter of 2018.
Basic and diluted earning per share were RMB 5.13, US dollar 0.74, compared with RMB 4.69 in the fourth quarter 2018.
Basic and diluted earning per share in the fourth quarter 2019, and it will based on a with the EBITDA of 40 million 858290 shares.
Now let me go over the.
2019 annual result.
Our revenue decreased by 10.8% to RMB eight.
0.0 billion U.S. dollar 2.6 billion compared with RMB 60.3 billion in 2018.
Gross profit was flat.
RMB $3.1 billion 445.2.
Billion million compared with.
2018.
The gross margin was.
Good 0.2% in 2019 compared with 19.0% in 2018.
The gross margin were lower primarily due to the change in.
Mix so at the higher production costs relate to initially six engine in 2019.
Other operating income increased by 75.7% to RMB 258 point.
Hi, Millen us dollar for the 8.5 million compared with RMB 192.7 million in 2018.
The increase was mainly due to higher interest income and.
Government Grant.
R&D expenses increased by 9.9% to RMB.
492.2 million, you install 70.6 million compared with RMB four and 47.
Point 7 million in 2018.
In 2019, the total R&D expenditure, including capitalized cost well.
RMB 859.0 million U.S. dollar 123.1 billion.
And represented 4.8.
Center as a percentage of revenue.
Compared with RMB four 643 point.
Fine million, representing 4.0% of revenue in 2018.
R&D expenses was mainly for research and development.
Folio of new engine compliant with a next generation nations, six and enhanced quality and performance.
As Gionee rose expenses rose by 16.2% to RMB 1.8 billion.
US dollars 258.9 million from RMB 1.6 billion in 2018.
Expenses represent 10.0% of revenue compared with.
9.6% in 2018.
The increase in R&D expenses was mainly due to higher.
Warranty expenses and higher impairment loss on trade we server.
Operating profit decreased by 10.6% to RMB 1.1 billion Us dollar 160.
4.3 million from RMB 1.3 billion in 2018.
The operating margin was 6.4% in 2019 compared with 7.9% in 2018.
Finance cost decreased by 16.5% to RMB.
131.8 million US dollar it did point 9 million.
From RMB 113.1 million in 2018, mainly due to higher amount of bank borrowings entry.
View discounting in 2019 compared with 2018.
The net profit attribute to China, each I shareholder decreased by 13.0% to RMB 604.9 million US dollar 86.7 million of basic and diluted earning per share of RMB.
14.81 us dollar 2.12.
Compared with RMB.
695.3 million or earning per share of 17.02 in 2018.
Basic and diluted earning per share is 2000, it did end 2009.
Well based on the with the addition of 14 million 858290 share.
Somebody should highlight as of.
December 31st 2019.
Cash and bank balance were RMB 6.4 billion dollar 916.1 million compared with RMB 6.1 billion at the end of 2018.
Great and be receivable were RMB 7.7 billion US dollar 1.1 billion compared with RMB 4.7 billion at the end of 2018.
Inventory were 2.8 billion US dollar 404.8 million compared with RMB 2.5 billion at end of 2018.
Sure MB Repairable were RMB 5.7 billion us dollars.
And 22.1 million compared with RMB 4.6 billion at the end of 2018.
Sure and long term borrowing were RMB 2.1 billion U.S. dollar.
Wondering 94.6 million compared with RMB 2.0 billion at end of 2018.
I will now turn the call over to Kevin's. Furthermore, comments before we begin acuity.
Thank you Thomas.
Please note that due to cope with 19, some officers or China, Yuchai, our remotely calling into the conference call. Because we travel restrictions. This may result in a slight delay and providing answers to some questions. We apologize for any inconvenient and thank you for your patience.
Operator, we're now ready.
QNX.
One moment, please turn to first question.
Ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question.
Please press star one on your telephone and wait for any into DNL.
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Your first question comes from the line of William Gregozeski from Greenridge Global Please ask your question.
Hi, guys great quarter.
Can you talk about how you were able to get such high heavy duty sales in the quarter end the year relative to the market.
Okay, Hi, correct. This remained.
In the first there is I think the itself has a lot do we see gas engine that they were.
Implemented.
A call or in the later.
The first July two zero at night.
I love the heavy duty engines that we sold a fourth quarter.
Chile or gas engine.
Okay and is that are you expecting to see similar growth on that going forward.
Well, we will see more it's off a mall getting you Miss the of in our glycol a in this coming year.
Now this partly because of the.
For the the government.
Push to to have a better environment. So we do expect to see by again a lot of it depends on the oil prices as well.
Okay.
It looks like you ended the quarter with a pretty good inventory balance have you had any interruptions in shipping or part availability or anything like that related to the lockdowns in different areas of China.
Well, okay no.
Breaking down two months now.
Hi, This January before Chinese new year, there were no problem, though.
After Chinese new year, where or when the Carl no virus solving 19.
Well at its peak, yes, we had problems getting component.
But as sales improved now.
It is much improved.
And think that gradually getting back to normal in China.
Yup.
Suppliers are also now starting to a.
Gear up and beef up your production.
Okay.
And then what what kind of impact have you I mean have you seen any other direct impact from that.
I presume.
First quarter sales are going to be quite a bit lower just because of the different shutdown.
I know you can't go too much into detail on that but can you just kind of talk generally about the impact other than the part availability on the company.
Okay, Yeah sure now.
The whole calculus on the locked out of especially who probably on the Calvin Chicago of a form of China.
So some of the killer critical components came from that region across all of those are probably will pay movie.
Without the liquid accomplice.
The.
And Brazil, because we use up what inventories that we had.
No.
Okay.
And also a with a whole country and a lot style article other parts of China to the competence, while about China to affected.
So for the month of Fabry I think are I think generate a deferral fell by 40, a general economy and most of many other businesses.
South.
Supply chain active ballet affected.
Okay.
When you think.
Yes, and you think thats pretty much back to normal.
Now start going into the fourth quarter or sorry, the second quarter, yes, there may be 100% yet.
Yeah, I think from.
From what they see our own.
Production has improved a lot compared to February.
So we are gradually getting there I think by quarterly should which came mostly there.
For the quarter.
Okay.
Last question is what was the amount of the write offs of receivables in the quarter and then for the full year.
Yeah, Thomas on answer that.
Hi, good we Didnt could you repeat your question again.
Yes, what was the amount of the receivable write offs in the quarter and for the full year.
Oh, yes, so it was actually happened on the last quarter on a payment.
<unk> is approximately a 25 million.
I assume that's R&D.
Yes, correct.
Yes, okay.
I think thank you guys you games, such a admitted for leisure flurry, because there's a there's a delayed payment and they have a timing issue with the customer.
So with the Olympics I'm actually try recovery.
Okay. Thank you.
All right.
Your next question comes from the line of Don ASP Shah Capital. Please ask your question.
Good morning, All dynasty was shot capital here.
You provided color on national sticks, but please provide an update on your electric powertrain and natural gas engines.
Okay.
Let's say, a natural gas and yet I mentioned earlier the initial jet engine nationalistic emission standard was simply matter from first July 201 night and since then we have so fast that there's natural gas engines.
So in total is for the full year to date overnight, probably thought about any 1000 units.
Most of them in the second half.
Is it $20.
22000.
Now for the.
Your energy powertrain or the one leverage that shows that the backlog and allow customers epilogue interested if the a range extender.
So we are working.
With our Oems.
We tried to other together.
Built into the out the system the Eagle.
And at that there's a lot of our interest in the marketplace for that particular.
Ah powertrain has now the other gathers Alco bell wireless, especially for the fuel cell I mean that matters not quite there yet, but we are progressing with it. We also looking at OEM to a two to start off with a prototype to build for the time the only of the tester to test for that that we currently have.
Okay.
What was your operating cash flow in Q4 and calendar year 2019, and an approximate U.S. dollar capex for 2020.
I wish I hinted at our.
Okay.
You are referring to d., the free cash the operating cash flow right.
Yes, that's right.
[noise] I mean, we in the fourth quarter, we do contribute.
Good.
The positive cash flow of about 600 million RMB.
And now for the full year, we have contributed about 1.5.
We believe.
R&D.
And an approximate a U.S. dollar capex for 2020.
Oh Tobin unit.
Okay.
Now daily to break it down to two components one is the but other maintenance Capex, we had about 300 million RMB, adding debt.
Well until about.
Here by seven cents above.
40 million U.S. dollar.
Therefore, the continued Multilane development.
Well the multi national six.
Steve fall in JC, probably near those three to 500 million again about 40 million politics.
Well in order to look at about 80 million maybe Nike.
Right.
We saw engine sales were up in March in China.
Same trend at sea Wendy.
When you set up in the compared to wish Peter compared to February definitely up.
Compared to a for this year, you're talking about two zero Anite attorneys Wendy.
Yes.
Yeah Franco the too much detail because my final numbers are not really finalized here, but compared to last mile. Yeah. We are basically up.
Okay. Okay.
We were glad to see the dollar plus dividend.
However, with with see why the board with over 50 million U.S. dollar sitting in Singapore.
Why is the board still not buying back shares.
Trading under IPO share price.
And with net cash level.
Well I think they've gone through these though many times like what we see all your colleague before the passing the at the board has referred to reward the shareholders through dividends as opposed to other other methods.
So I think that's the bottom hasn't changed based approach here today.
We.
Don't understand why or why they're they're still electing to not do that even at these prices I mean, as the company probably not going private.
HM.
We have as all of the Evan I've discussed I know this issue I don't know a adding the boss it's up to the it after the bought a of the L. shareholder.
Cash is very important to us in this very difficult environment right now.
So a especially for now we see a the.
Probably 19 or the whole environment, but very very uncertain right now.
So the more cash you're happy with us the better is going to be.
Okay.
Thank you that's all I have right.
Yes.
Once again, if you wish to ask a question. Please press star one on your telephone keypad.
Once again, if you wish to ask a question. Please press star one on your telephone keypad.
Okay. We have a question here how much will revenue you like how much.
Revenue, yes back to decline for the virus.
The impact on trade receivables.
You know.
Let me elaborate for the other 300 million rising yesterday.
Now the impact on the.
From the virus is largely in the month of late February lastly.
Well these are feeling much so.
Both domestically in China, we actually we hope that that things will get better and the second quarter.
And fourth quarter, so hopefully starting the second quarter.
Now currently very difficult right now to do you go down so that is due to actually forecast.
The impact of the of the buyer.
Receivables, we do not expect to have a commercial brown receivables, we always been able to collect all our receivables the path.
With your fund this year.
Thomas with you on a a spot on the Oh right not agenda.
Alright.
Ooh.
Turning to read the questions because it's so small.
Good.
I read out to you.
Are you able to elaborate further on the 300 million right It's unit.
Yeah.
[noise], mainly increased on debt is due to the warranty expenses.
We had.
Oh, well into the National six a series introduction or launch a we we do expect to to service. The engine is on the pilot run so that is the major impact on the on the Ginny.
Okay.
Now we have another question related to execute a unit or Kelvin maybe other than to that one I say it is what was the unit output revenue gross margin of profit for MTO unit.
What would be that target Anthony can do for these numbers.
Kelly.
Yeah. This is telling me.
Regarding on the operating partner to your engine indeed, the pendulum selling price and I'm sure I don't think the.
A weekend specified in the what the margin via ticking from their engine to on selling to the customer here.
Well I would say and then the.
You didn't see margins I'm not that again, then what we are doing and then on the traditional we go engine sales and then you try and Jim.
On the sales target for the year 2020.
Oh, we are we expecting it end or to sell wrong here in the engine well. This year. It now is it he will be a question mark because.
We definitely an illusion of first quarter.
On the sale so to do the unusual marketing you do though.
Corner align us IP men and bandwidth so.
So be it then we will be its targeted by new side, who so, especially as we can.
Okay.
Final question would be one will be the gross margin trading Penny Funtv small that's you know six sales.
Yeah, let's say sales contribution to gross margin is already baked in a moment or simply because we are still very aggressive Evan reached a we've been selling a lot yet and we expect to sell more than 2020, but it will still not.
A large enough to give us a volume or the economy of scales that we need.
So you like.
However, we do expect the the across much of the improved potential of six Intuniv handy right.
[noise].
We have another question here.
The question is what will be the Percentish. That's another six sale in 320.
Well, it's too early to tell right now, especially with the calling 19 outbreak.
We had hoped to sell more than 13000 unit, which we did last year, we definitely be more than that.
With the culminating with the first quarter been affected by the Soviet night in its going to be or it's going to be difficult for us to Ah to focus right now due to uncertainty.
We do expect to sell more than anybody they lost here.
[noise].
Operator.
Yes, we have now reach the end of arc, you any session and I will turn the call back to Mr. huh.
Please go ahead.
Thank you all participating in this conference call, we wish each of you could help and please be safe during this crisis.
We look forward to speaking with you again.
Bye.
Ladies and gentlemen that does conclude our conference for today. Thank you for participating you may now all disconnect.
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