Q3 2020 Venator Materials PLC Earnings Call

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After todays presentation, there will be an opportunity to ask questions.

Okay. Christian you must be started me one telephone keypad.

Withdraw your question. Please press Star then be too.

But he's not specific just being recorded.

I would like to turn the conference every Teekay troublesome. Please go ahead.

Thank you, Chris and good morning, everyone I'm, taking Robertson Investor Relations, but then its commentary on well cost advantage that supports its fine 20 earnings call.

Joining us on the call today assign antenna president and CEO and cut off then executive Vice President and CFO.

This morning, we released earnings for the third quarter Twentytwenty by a press release and posted.

The release and accompanying slides trial website at <unk> Dot com.

During this call we may make statements about how projections or expectations for the future. All such statements are forward looking and while they reflect our current expectation. They may involve risks and uncertainties and I'm not guarantees of future performance.

You should review our filings with the FCC for more information regarding the process that could cause actual results to differ materially from these projections or expectations.

We do not plan on publicly they thing or revising any forward looking statements during the call today.

We will also refer to non-GAAP financial measures such as EBITDA adjusted EBITDA adjusted net income free cash so I'm not that you can find reconciliations to the most directly comparable GAAP financial measures in our earnings release, which has been posted to our website.

It is now my pleasure to turn the call over to Simon.

Thanks, Ted and good morning, everyone welcome to our third quarter 2020 earnings cool, Firstly I would like to thank all of our associates football how they have responded to the constant challenge of the Cove at 19 on dynamic their own credit to our business and our bodies let's.

Let's begin on slide three vessels delivered 17 million of adjusted EBITDA in the third quarter.

Total sales volume declined 9% compared to the prior year period, primarily as a result of the pandemic.

Compared to the prior year quarter, we have seen a gradual recovery in demand for most of our products, resulting in a 3% increase in sales volumes notwithstanding the fact that the third quarter is traditionally seasonally weaker than the second quarter and.

And we thought that the impact of hurricane Lora within our tier two segments.

I would also like to point out that our timber treatment I kinda pigments businesses continue to demonstrate resilience and the challenging macroeconomic environment.

We delivered 24 million of free cash flow in the quarter, primarily due to reduction of inventories as we aligned up production to meet demand.

Turning to slide four on our cost programs.

We are continuously looking to implement additional self help actions to improve our cost profile on competitiveness.

As you know we have had several cost reduction programs that we have successfully delivered on.

As previously promised we recently started a new Twentytwenty business improvement program focused on further reducing our cost.

We expect this program to the 55 million of annual EBITDAR improvement by the end of Twentytwenty, two compared to 29 team.

The Twentytwenty business improved program is incremental to watch on T. 19 business improvement program and includes 10 million of color pigments savings previously identified and as well as 45 million of other savings from manufacturing cost improvement on SGN I I.

As a result, we anticipate there will be an approximately 10% reduction in work force primarily in Germany.

These savings will more than replace approximately 13 million of nonrecurring savings from our COVID-19 initiatives.

The manufacturing cost improvements come from across our network I'm include our intention to permanently reduce 50 kilotons of tier two and 50 Kilotons a functional additives nameplate capacity in Germany. We've.

We expect future cash restructuring costs to deliver the Twentytwenty business improvement program to be within the range of $45 million to $50 million.

60 million, we expect to say, even 2020, we have recognized around 75% of fees savings year to date in Twentytwenty. One we expect to deliver total savings of approximately $65 million as we more than offset the nonrecurring savings from our COVID-19 initiatives.

Turning to slide five knots, attaining dockside segments.

In the third quarter us attaining dockside sales volumes increased by 2% compared to the prior quarter, excluding the impact of Hurricane law or the improvement would have been 4%.

No two sales volumes declined by 11% compared to the prior year period and represents an improvement from the second quarter comparison as we as we return to a more normalized demand environment.

Our average C O two price remains stable in U.S.D., but declined 3% sequentially in local currency, particularly as a result of unfavorable product mix mix, which lowered the tio to average selling price.

Looking at our business regionally on a relative basis North America was the most resilient region in the quarter, followed by a APAC and Europe.

Excluding the impact of Hurricane lower sales volumes in North America were comparable to the second quarter, Hey, Pat to mom was stable with the second quarter and there was a notable recovering your primary about functional T O two products, which was expected as Europe was impacted by the most restrictive policy responses to the pandemic in the first half of 2000.

20.

In the third quarter, we generated 21 million of adjusted EBITDA enough attending dockside segment compared to 51 million in Threeq, you 19, I'm 35 million in the prior quarter the impact of Unabsorbed fixed cost as we moderated production at our manufacturing facilities to better align with demand was the largest driver of the decrease.

These costs were partially offset by cost reduction initiatives.

Turning to the outlook, we are monitoring the current reserves guidance of COVID-19 across various applications and corresponding impacts on our businesses.

At this moment our sales in October on order book for November do not suggest any further weakness to the COVID-19 resurgence.

In the fourth quarter, we expect to see some seasonality with our sales volumes compared to the third quarter Twentytwenty and expect prices to remain stable.

We are beginning to see a modest improvement in textile demand within our specialty tier two business the pace in shape recovery remains contingent on policy responses to the pandemic.

Turning to slide six and performance additives.

Revenues in the third quarter Twentytwenty was similar to the prior year and improvement in average selling prices and positive sales mix more than offset lower demand related to covert nine c.

We continue to see weak demand in automotive end use applications impacting demand for certain of our functional additives products on the other hand, we continue to see strong demand for our timber treatment products as DIY trends in North America remain healthy sequential.

Sequential volume and color pigments improved significantly in the quarter, which is typically seasonally softer due to higher construction sales, which in turn reduced the average selling price.

The performance out of some segment generated 5 million of adjusted EBITDA in the third quarter down 8 million compared to the prior year period.

The impact of Unabsorbed fixed costs as we moderated production at our manufacturing facilities to better align with demand was the largest driver of the decrease these costs were partially offset by our cost reduction initiatives.

As I mentioned earlier, we intend to rationalize capacity of our functional additives facility in Germany to further manage our controllable costs. These.

These actions along with the 10 billion color pigments cost and operational efficiencies will deliver incremental EBITDA within the performance out of this segment through Twentytwenty two.

I was in our tier two business, we are monitoring the current reserves a COVID-19 across various locations, where any impacts where performance additive businesses at the moment our sales in October an order book for November do not suggest any further weakness Jude COVID-19 resurgence in the fourth quarter, we expect demand to do.

Klein in line with normal seasonality and pricing for our performance additive segment to remain stable compared to the prior quarter with differences by product and application.

I will now pass the call over to Curt to discuss our financials I will then return to provide some additional comments.

Yes.

Thanks, Simon Let's go ahead and turn to slide number seven.

In the third quarter total adjusted EBITDA declined $33 million compared to the prior year period.

The decline was primarily attributable to lower demand, resulting in lower sales volumes and unfavorable fixed cost absorption as we moderated production at our plants, while managing our inventory levels in response to the needs of our customers during the COVID-19 pandemic.

These were partially offset by lower SDMA costs from our business improvement program and our COVID-19 cost reduction initiatives.

Compared to the second quarter total adjusted EBITDA decreased by $20 million. The decline was primarily attributable to unfavorable fixed cost absorption as we moderated production at our plants, while managing our inventory levels in response to customer demand.

During the pandemic.

This was partially offset by a sequential improvement in sales volumes in our Qiaotou and performance additive segments.

Turning to slide eight and our cash flow bridge.

We continue our intense focus on improving our free cash flow profile.

In the third quarter, we generated $24 million of positive free cash flow.

This was primarily due to efficient working capital management as we aligned our production network to meet demand with a strict focus on inventory management.

Looking forward to the fourth quarter, we are further reducing our estimated 2020 cash uses associated with restructuring and employee related items by 5 million each.

At the end of the third quarter total liquidity was 472 million consisting of 208 million in cash and 264 million of Undrawn availability under our asset based revolving lending facility.

We do not have any significant long term maturities until 2024.

We will continue to exercise rigorous discipline over our cash uses and capital deployment as we work toward improving our operational cash flow with.

With that I'll turn it back to Simon.

Thanks Kit on August the 20, Eightth, we announced that funds advised by SK capital Partners LP have agreed to purchase approximately 42.5 million shares representing just under 40% of Ventas was outstanding shares from Huntsman Corporation. The transaction is subject to regulatory approvals which are for.

Pressing well on the transaction is expected to close near year end.

Our third quarter results demonstrate our commitment to our customer tailored approach the execution of our business improvement programs on our relentless focus on cash generation. Our business is beginning to see a gradual recovery and demand for most products notwithstanding what is traditionally a seasonally lower quarter on the impact of hurricane lower in auto to sell.

Yes.

In the fourth quarter, we expect historical seasonal patterns to be muted with sate with stable selling prices a favorable benefit from increased production rates will largely be offset by higher feedstock costs and lower savings from our nonrecurring COVID-19 initiatives.

Our strategy remains as follows we are committed to our customer stated approach in both our COO to on performance additive segments. This balanced healthy anticipated effects of reducing margin volatility on improving visibility for us and our customers.

We are focused on strengthening our leadership position in specialty and differentiated Seo too as well as improving the mix in outperformance additive segments.

As promised we have identified new cost savings, which along with the 10 million color pigments cost and operational efficiencies will deliver 55 million of annual savings by the end of Twentytwenty, two and improved the cost competitiveness of our business. This new program builds on our successful delivery of product cost reduction of this initiatives.

As Curt mentioned, we delivered positive free cash flow in the third quarter and our expected cash uses in 2020 will be significantly below that of 2019, we.

We are fully committed to maximizing shareholder value through active portfolio optimization the process to explore a potential sale of the color pigments business remains on pools due to COVID-19.

In the interim we remain committed to enhancing the profitability of this business.

Notwithstanding the uncertainty surrounding the resurgence of COVID-19, we continue to execute our strategic priorities I am encouraged by the positive signals in the third quarter the strength of our order book and our new improvement initiatives that will strengthen our competitiveness with that we thank you for your continued interest in Venice.

So over now like to open the call for questions.

Thank you very much.

Ladies and gentlemen, we will now begin receiving on cessation wall.

You asked a question you may be small indeed, when you close on key Paul.

If you are using a speakerphone piece, it's helpful. Hence each before placing the keys.

Can you talk about your question please be stall the key.

Also this question is from David Begleiter of Deutsche Bank. Please go ahead.

Hi, This is Dave apply here for Dave I guess first just on Seattle to pricing do you see any opportunities for Joe to pricing to move hiring 2021.

Yes, I mean this is Simon here just in response to that question I think that we've seen some pretty tough trading conditions least past several quarters, including this year and even prior to that we talk significantly about our pricing program on our.

Estimate tailored approach here on these calls many times, which have seen once again and delivered a stable pricing environment. During these tough trading conditions. So directionally as we come out of this year and we see the recovery depending on the profile of that recovery from the pandemic.

Both at the industry level and for the business, Yes, Directionally, we would expect to see price increase we're getting to the price increase zone in 2021.

Okay, and then just Q4 EBITDA given your underlying improvement than some seasonality and cost saves and everything do you expect your Q4 and also I mean, we tariff Lake Charles capacity do you expect your Q4 EBITDA to be higher than in Q3.

Yeah.

Yes look I think the way, we think about that right now with everything we've seen in the round and there are quite a lot of moving costs.

We see that the earnings would likely be similar clear.

Clearly in a historically, we would expect a sort of down seasonality.

In the fourth quarter being the traditionally the lowest volume quarter. We don't we expect our seasonality still to be that given off you know sales and application footprint, but much more muted.

We do have some further oil costs.

On some unwind at some of our onetime coated.

Nonrecurring cobot savings to set against those so yes, there are a number of moving parts pricing to remain stable, but in the round I expect it to be similar.

Okay. Thank you.

Thank you. The next question is from Josh Spector of CBS. Please go ahead.

Yes, hi, Thanks for taking my question just to follow up on the feed cost as feedstock cost side of things are you able to quantify what you're thinking about inflation would be Q on Q and it can you give us some context of what that cost would look like for for next year versus this year at this point.

Yes look I don't think we'd be willing to breakout in courts and numbers I think what we can say about feedstock in unit.

Of course, it depends by feedstock types of family, but broadly speaking, we would see feedstocks be a net tailwind in 2021.

There's still quite a bit of discussion the negotiations that go that so we won't be dimensioning that should we choose to dimension that will probably only be sometime in the front end of next year.

We'll have to see what that brings but at this point, we could confirm we expect to see a settlement charge. This is Curt let me just add to what Simon has said on as we look into 2021.

And we expect to pick up a tailwind related to ore feedstocks. We added just also note that it's likely that those benefits will be partially offset.

By higher energy costs.

As we compare that element of our cost to sales year on year as well, but to all up we would expect a net tailwind, but some some different moving elements within there.

Got it thanks for that and just in terms of your nameplate shutdowns in T Ao, two and within that performance additives and functional side of the business.

Does that impact your volumes that you had helped put in 2019 relative to what you're seeing or do you think that those volumes move elsewhere within the circuit so that your production.

A year or two ago could be similar to those levels and in the future.

Watch or is this abroad a call on the market that you feel that there may be some slackness and maybe supply demand fundamentals Ah, particularly on the lower grade or side of things.

Yeah, it's a little bit of both frankly is I mean, you know we buy significant volumes of of element and that's not to say that haven't been cost pressures on island. The night, but you've got to look over these past 24 months, how we've owned boarded feedstock costs and Ah more to the point the point at which they hit our accounts and flow.

Through and unit so they can be assigned phasing aspect to this so.

And then of course, we don't buy quite as much as some baskets of high grade chloride materials as other than those tend to see the higher inflationary pressures.

Couple that with some of the conversations we have with our suppliers.

Is that picture that we put together a grantee there are different moving parts and that can be difference within but at the aggregate level. We still believe we will see a tailwind.

I am very helpful and as a follow up.

In your prepared remarks, you talked about demand demand growth by region.

Highlighting obesity in North America, and the demand trance, there, but also sort of talking about the APAC region and.

You know how demand was pretty decent there as well you know in hearing some of the commentary from your competitors you know, it's a bed that APAC wasn't as strong as it could be and some of them are identified.

India is a bit of a sore point right. I mean, you know, presumably because of some of the locked down there in the lake So how should we be thinking about that demand, particularly in India. As we go through the course of the fourth quarter.

Yeah, No kind of thing is an interesting point you raise that have done and it brings me onto something I think we feel.

We should really pointing out here can you stand back and you look at the years today, rather than just the last three months of you sound like three quarters of the year to date broadly speaking, we would see our overall volumetric demand, particularly functional markets pretty much on a par with most others of our competitors at the.

<unk> level and at the Big picture level.

Already mentioned, we saw stable prices I think at the Big picture you can see people are in the line.

With the odd exception broadly in the line.

Narrow it down to what we see in the third quarter and the fourth I mean.

I think of volumes will basically be driven by more.

Applications footprint. So we've made no secret over the years that we are biased towards more specialized in differentiated segments, we have lower exposure to lodge decorative coatings businesses around the world.

In the third quarter, we saw very strong growth in that segment in North America, which frankly.

We would best positioned to satisfy even without the fact that we had a as in lake Charles impacted by the Hurricane. So so clearly we wouldn't have seen as much in North America, and we achieved the very good recovery in Europe in the third quarter, which I think you would expect we've got a large position year, we will we will.

Pleased with that recover we saw in Europe in the third quarter in Asia. We've seen we believe the overall there was a pretty reasonable recovery, we didn't see in our numbers until specific point about India.

A very low exposure to India. So we're not past place to comment around India, and South America, which I think some of our competitors have commented on his I've seen in reports.

So I think our sort of growth profile notwithstanding the fact, it's not dissimilar on the year to date basis within the third quarter and probably within the fourth quarter is driven more by the fact, we've got less exposure to lodge decorative are more exposure to spell.

Specialty in French hated and so obviously, where our specialty textiles segment Caesar muted demand that hurts us and that plays into the sort of like.

Growth comps, so I think that it's really application mix more than geography, a little bit of lower exposure to North America, maybe that drive the differences I hope that sort of hopes answer your question very much. So thanks, so much Diana.

HM.

Thank you. The next question is from John Mcnulty of BMO capital markets.

Hey, good morning. This is cold can be in on to John.

Uhm, so two questions.

Two questions first of all you know as as you were just mentioning you do have a slightly different application footprint than some of your some of your other publicly traded peers. So could you just remind us in a normal year of what would that <unk> seasonality look like for you guys.

Yeah. So I think overall you'd expect to double digit percentage drop off in the fourth quarter versus the third quarter may be a little bit less than that.

So, let's say, 828% to 10% type of range would be a more specific average typically here. If there is such a thing and that's a fairly short time warm sort of.

Ratio that we typically expect to see.

Okay. Thanks, So that's really helpful and second of all I was just wondering you know on your slide about <unk> you mentioned the some of the impact from Hurricane Morrow was mitigated through insurance proceeds. So I was just wondering did did the actual earnings impact from Hurricane Laura end up being.

Less or different than that 10 million that you guys pointed two in September.

Yeah, I think that we undo indicated at that time and if things are forming at that point, we full it will be less than 10 million, but the way. It's played out we think that numbers you should think about that is 5 million five minutes.

Okay. Thank you that's real helpful.

Thank you and the next question is from <unk> City. Please.

Hi, good morning at their Petri on for Pizza.

Sure.

Based on your discussions with S. K capital you know how are they are looking to optimize the portfolio and they see low hanging fruit to increase cash generation.

That's related to that question is your under exposed to architectural coatings and I kind of missed out on the DIY strength. So are you happy with the portfolio next in the long run.

I, let let's make a couple of points.

First off as we said early that we are progressing well with our with the SK capital transactions progressing well, but of course, it's not complete we don't expect that to close near here and so it's way too early to get into any questions around possible implications of impact solve that because it's yet to have.

And we have to respect obviously regulates reprocessing processes here, which we are doing so we won't be commenting on that at this stage and maybe just a second point there is.

Let's be clear that we do have good exposure in certain locations to architectural decorative coatings, notably in Europe, where we've got the largest sales footprint. So it's not that we have missed out on a it's just that in the Asian and North American regions, we probably have less exposure and it's there we missed out it's not a sort of.

Absolute we've missed that we do sell significant volumes to architectural decorative cozy.

Okay. Thanks.

And secondly on your 60000 tons reduction in Ti to capacity what is the timing of that and most of that low quality and then on the flip side could you consider increasing a returning additional special two ton blast from <unk> cause the market warrant.

Those incremental times.

Yeah, I think the second part of your question the market doesn't warranted at this point I mean as you know we've had this we have had for a little while the softness in the textile segment, which is supplied from from Germany.

The plan has supply has supplied maiden supplied in Germany, those plants to have maiden slowpoke specialty and functional products over the years.

So if you think about when which stage that capacity would come out we will be able to take that capacity out during the course of.

2021 next year.

But as I said, you shouldn't really think about that as being in a 50000 tons of actual in play capacity. It's 50000 tons of nameplate capacity in a smaller amount of that is has been in play and we think we can more profitably remove that pops distributed amongst the more efficient possible on network and thus improve.

Performance.

Thank you Sir.

Okay.

Thank you.

The next question is from our ambition with a ton of R. B C capital markets.

Great. Thanks for taking my question.

I'm just curious on your market outlook you noted maybe there's some possibility for price increases in the second half of 21 could you just elaborate on that what gives you the confidence on that side and maybe if you could offer some comments on supply and demand an inventory as well have you seen any reduction.

And global inventories and is that part of your comment or could you just offer some thoughts on those things.

Yeah, I think big picture again, you look at these past year and a half there's been a speak here for vintage of course, it can't speak on behalf of others, but on behalf of ourselves.

Lee managed production circuit inventory controls cash and.

Our sales to our customers with our pricing we think we struck the right balance is big time, some of the third quarter, let's face. It we've had some moderate quite hardware, that's being a bit tough, but we delivered the positive 24 million cash flow within the quarter.

We've got our inventory set at pretty tight levels now and we're aiming to sort of replicate the position. We were in the front end of 2020 in the front end of 2021 until we got blown off course of it by the pandemic, which was being well set to take advantage of upswing in demand and get to some pricing cannot I didn't.

Actually say the second half of 2021 us to Directionally in 2021, not yet willing to comment on the timing of that but that we think we're getting into the price increase own by carefully managing our inventories into early next year seeing how the recovery unfolds.

Well because she had meant to expand margin.

And then if I could ask the other question just on the on the business improvement program.

Uhm was this.

I understand that it's always challenging to you know think about capacity, Kansas, but.

You know that this was potentially on that maybe in the upper end of the cost curve do you think there's other capacity out there maybe within the industry that would also fall into that bucket and you see further rationalization either within your portfolio or elsewhere within the industry. Thanks.

Or is there room to do more adjustments that just take more time to prepare.

But can you just repeat the question make sure I understood the very last part of that.

It is there is the size of the restructuring served.

Sort of a attempt to capture some of the most that you can do.

I mean, so is this sort of the optimized network or are there other initiatives that you can do that will take another six to 12 months to prepare before you can make decisions on them.

Yes look I think this will take up most of the sunlight limits of the capacity as we currently see the sick.

There is always a course scope to nip out more tons on the sort of like capacity creep faces I expect that to continue but if the question is do we see any natural candidates with meaningful capacity increase the up.

So that the no brainer economics I think the answer is probably no.

In that timeframe. Thank you.

Pleasure.

Thank you. The next question is from Stephen Burn off Banc of America Securities. Please go ahead.

Yes. Thank you.

I believe it can be quite challenging to cut headcount in Germany and we.

Welcome your comments on that.

With respect to both government and union obstacles is that pretty well under way and and or is that 45 to 50 million restructuring cost have some potential risk to it.

No look I think that we wouldn't be laying out these numbers if we didnt believe in the integrity of these numbers.

Of course, we want to be at Crystal clear that we will respect union and labor agreements in Germany.

We are in consultation advanced stages of consultation I would describe that.

So we feel good about.

The fact that this is how we're going to proceed of course, it's never easy and its not something we like doing in reducing numbers of associates, but I will tell you that you know in 2015 and.

Since that time, we've owned this gym and assets we have gone through this process before we are well versed in the process.

Did the materials the protocols, we have followed them again this time on that we have every confidence that we will deliver.

Deliver on the program that we've.

Weve outlined I would also like to just reiterate that that 45 to 50 million isn't all that German restructuring costs. I mean, there is a significant fraction of the program targeted at SGN $820 million. There is some color pigments.

Improvement in that number so it's not all located within Germany.

I'd just add to that that we have yet to recognize a restructuring charge in the TNL.

For that 45 to 50, although we feel really good about our ability to deliver the full $55 million of benefit because we are still in consultation.

That said that charge for the restructuring expense will be coming in subsequent quarters.

Okay. Thank you for that and Simon you talked about.

Perhaps some of the softness in Ti Vo two volumes being that you are under weighed in North American market.

Architectural.

But still globally.

Not a bad end market in plastic also being a very large end markets for Ti Vo two for you.

Was curious to hear your view or whether you have any visibility on inventory levels of your customers whether it's.

They are being cautious and running their own inventories down and thus there could be in.

In inventory restocking component.

With the overall recovery.

Yeah, I mean, I think that is possible, we would see them at the moment no at normal levels.

At Best we don't think anyone's currently blown up those inventories to inflate to them in plastics, all coatings and.

To your point earlier on in the in the pandemic in fact coatings was impacted more than than plastics, and so and so the other way in plastics kind of helps us earlier in the year, which is why I think you've got to look at you know.

You know the big picture, which is year to date of how our volumes have been and I think that pretty much in line with with most others.

FFO rules, which we yet to sort of dimension and talk in more detail will come back on that and of course, we talk directionally about the ability to improve price in 2021. So I think if you put that together and you look at our patent of margins. These past two to three years well, let's face it the trough has been less and less of a sort of like a.

Damaging troffers as certainly the prior one was in 15 and 16.

We still believe we can take this business to a sort of 20%.

Lou sure I think if you look at the Big picture and take a step back we still basically have the same sort of share levels. We were you know when focusing more though on getting that cash balance right getting our inventories right and not blend against servicing off customers and making sure. They always get what we promised them and I think that's starting to see.

The benefit of it and then I started getting used to that.

And that's why we're saying again in the fourth quarter things that pretty tough how that but but we still got this pandemic to cope with but we predict things stable prices. So I think.

As well set.

Got it thank you very much.

Okay.

Thank you very much survey questions available uhm.

Confidence that contributes and so I'm trying to say anything to your box.

Thanks, very much sure Chris send that I'd, just like to say to everyone on the call. Thank you. Thank you to our associates, the aura work and our customers and suppliers for working with our business. We hope you will stay safe.

At this time of course as ever and we really look forward to resuming the times, where we can see you personally face to face and conduct meetings with you and with that please don't hesitate to reach out to Kate here and Investor Relations. Thank you for your continued interest in Venice, So and we look forward to speaking to again on future occasions. Thank you very much.

Thank you very much.