Q2 2021 American Water Works Company Inc Earnings Call
At June 32021 form 10-Q, each as filed with the SEC.
Reconciliations for non-GAAP financial information related to O&M efficiency ratio can be found in our earnings release and in the appendix of the slide deck for this call.
The slide deck has also been posted to our Investor Relations page for our website.
All statements in this call related to earnings and earnings per share refer to diluted earnings and earnings per share and for purposes of the anchor year on long term EPS growth guidance. The anchor is weather adjusted 2020 EPS of $3.84.
And with that I will turn the call over to American water's, President and CEO for Walter Lynch.
Hey, good morning, everyone and thanks for joining us once again the employees of American water delivered solid results as we continue to execute on our low risk profile and predictable growth story.
Let's move to slide 5 to cover the highlights of our second quarter and 6 months results.
Our second quarter 2021 earnings per share increased 17, 5% compared to the second quarter 2020 included in the results as of <unk> <unk> per share benefit from weather, primarily in the northeast, where we saw a moderate impact from warmer and drier than normal conditions in.
In the first 6 months of 2021, we invested $782 million with the majority dedicated to needed infrastructure improvements to better serve our customers. We continue to work hard to minimize the bill impacts of these investments by focusing on capital and operating efficiencies constructive regulatory outcomes and by leveraging the size and scale of our business.
As a reminder, we previously announced an O&M efficiency target of 34% by 2025.
We also continue our disciplined approach to regulated acquisitions. We've added approximately 11200 customer connections to date through closed acquisitions and organic growth and look forward to welcoming an additional 86900 customer connections through pending acquisitions I'll provide more detail on growth in a moment.
Moving to slide 6 the foundation of our earnings growth continues to be the capital investment we make on our regulated operations. We plan to spend $1.9 billion in 2021 and about $10.4 billion over the next 5 years for continued investment is critical to improving and maintaining distribution and treatment infrastructure.
Including improving water quality fixing leaks in providing water for fire hydrants. These efforts help our communities remains strong and attractive to residents and businesses.
With a strong first half of 2021 and continued execution of our strategies. We are affirming today, our 2021 earnings guidance range of $4.18 to $4.28 per share. We're also affirming our long term EPS compound annual growth rate range of 7% to 10%.
Turning to slide 7 let's go through some of the regulatory and legislative highlights for the second quarter of 2021.
On June 28, the Iowa Utilities Board issued an order approving an increase in annual based revenue of $1 million for Iowa American water.
The company's investment of almost $87 million on water system improvements was the primary driver behind the rate adjustment request.
We also have pending cases in West, Virginia, and California, We cover, California American water general rate case, as well as the cost of capital application on our last call in both cases are progressing as expected let me spend a few minutes on California's drought emergency.
As you've likely heard governor Newsome expanded the state's route emergency declaration in 50 out of 58 counties.
Currently our water supplies in California are in good shape, but we're activating mandatory conservation measures for our customers in Sonoma County.
We're also conducting extensive outreach to our highest water users and encouraging our customers to voluntarily reduce their water use across our entire service area.
The drought once again highlights the need for the Monterey Peninsula water supply project as we previously discussed, California American water refiled its application to the coastal Commission on November 6.2020 on December 3.2020, the coastal commission sent a notice requesting additional information, California American water provided the requested response.
In March 2021.
The coastal Commission then requested additional information on June 18th our California team is working on this additional request.
Once we provide that information is staffed teams the application complete by statute. The coastal commission would have 180 days to process. It.
Additionally, on July 29, the New Jersey, New Jersey Board of public utilities issued a final order denying approval of acquisition adjustments in rates associated with the purchase of shorelines and hadn't filled in 2017 and 2015, respectively.
The order is not the outcome, we have been working towards and we continue to evaluate next steps.
Wherever we had accounted for this possibility and the decision will not have an impact on our financial results move.
Moving to state legislation, we continue to engage with states as they take action to help address water and wastewater challenges.
In New Jersey legislation that strengthens the state's water water quality Accountability Act is passed Boathouses unanimously and is awaiting the governor's signature enhancements include additional enforcement requirements for reporting data stronger cyber security requirements and asset management plans and requirements for the sale of systems with prolonged <unk>.
<unk>, New Jersey was the first day to pass on water quality Accountability Act and we're pleased to see the <unk> strength and on behalf of all water customers in New Jersey.
Also in New Jersey, the Governor signed a lead service line replacement Bill that includes O&M expenses and interest accrued on customer on lines as recoverable items.
As you know American water has long advocated for full service line replacement versus a partial replacement to address led issues.
In Missouri, the Governor signed the water and sewer infrastructure Act, which will become effective on August 28, 2021. This act establishes a new statewide infrastructure system replacement surcharge program that broadens the list of eligible projects. It also increases the cash from 10% to 15% of Missouri American water revenue requirement.
For these eligible projects. Additionally, customer on lit service line replacements are excluded from the cap.
Finally, as we mentioned last call on a national level, we remain supportive of investments in water and wastewater infrastructure the.
The proposed bipartisan package supported by the administration includes 55 billion for water infrastructure. We believe the proposed additions to state revolving funds for drinking water and the possible expansion of the water light heap type program for all water customers would help improve our nation's water infrastructure.
Moving to slide 8 customers remain at the center of every decision. We make this means smart investments balanced by efficient operations and capital deployment for.
For the 12 month period, ending June 32021, our O&M efficiency ratio was 33, 9% compared to 34, 3% for the 12 month period ended June 32020.
As we note each quarter, our adjusted O&M expenses are just slightly higher today than they were in 2010 during that period. We have added approximately 333000 customer connections while expenses only increased at a compound annual growth rate of just over 1%.
On the subject of cost inflationary pressures and scarcity of some supplies in certain sectors of the U S economy.
Let me remind you that our company does have the advantage of volumetric purchases and economies of scale by leveraging our national size and scale and working closely with our suppliers on the water sector, we've been able to shield ourselves from the most part from these effects at this time, we've not experienced and do not anticipate any material negative impacts on our supply chain.
Before I move to growth, let me provide a quick update on the sales New York American water.
Both American water and Liberty remain committed to closing the sale and continue to work through the regulatory process. As noted by 8-K filing on June 29th both parties agreed to extend the closing and day in accordance to the terms of the stock purchase agreement.
We remain confident that the sale will be completed assuming progress continues as expected. We believe that the net impact from New York in 2021 results won't material impact our 2021 guidance range. Further we don't anticipate any impact on the expected timing of our previously discussed future equity needs.
Moving to slide 9 we've.
We've announced multiple acquisitions in the first half of 2021, including our largest acquisition in York, Pennsylvania, which will add an equivalent customer connection total of more than 45000, we continue to make progress on that acquisition. Most recently filing an application with the public utility Commission on July 1.
As I mentioned earlier, so far in 2021, we've closed on 8 acquisitions and for different states, adding approximately 3000, new customer connections. We've also added approximately 8200 customer connections through organic growth in the first 6 months.
We look forward to adding another 86900 customer connections through 37 currently signed agreements in 8 states.
These new agreements reflect our commitment to provide water and wastewater solutions in communities, where we can leverage our scale and expertise. We know that many communities are facing unprecedented challenges and we're well positioned to provide them solutions.
Our growth is also a direct result of our commitment to customer service I want to congratulate both our new Jersey, and Illinois subsidiaries for earning J D Power awards for ranking highest in customer satisfaction, among large utilities large water utilities in the northeast and Midwest.
It's the second year in a row that our Illinois subsidiary ranked highest we're proud of our teams and the way they put our customers first every day with that I'll turn it over to Susan.
Thanks, Walter let's start on slide 11, with a review of results.
Second quarter 2021 earnings were $1.14 per share compared to <unk> 97 per share in the second quarter of 2020 as.
As Walter mentioned included in earnings is an estimated <unk> <unk> per share favorable impact from weather, primarily in the northeast, where we saw conditions warmer and drier than normal through the quarter.
Results for the regulated business segment were $1.18 per share an increase of 21 cents per share compared to 2020 earnings.
Our results for the market based business were <unk> 11 per share a decrease of <unk> <unk> per share.
And finally parent company results decreased <unk> <unk> per share in the second quarter of 2021 as compared to the same period last year.
Our 2021 earnings through June 30th were $1.87 per share an increase of 22 per share compared to the same period last year.
Results for the 6 months period include the estimated <unk> <unk> per share favorable impact from weather in the second quarter of 'twenty 1.
Regulated business results increased 27 per share compared to 2020 earnings in our market based business results decreased <unk> <unk> per share.
On parent company results were unchanged year over year.
Moving on to Slide 12, let me provide just a few more details by business as I noted earlier regulated results increased 21 per share and we saw 30 <unk> per share increase in revenues from new rates in effect from acquisitions and from the lower demand in the second quarter of 2020 from the COVID-19 pandemic as a reminder, we saw the 2000.
'twenty full year impact on demand due to the pandemic can be nearly zero and we see no real lingering impact on demand in 2021.
Also as I mentioned previously results reflect an estimated <unk> <unk> per share increase from warmer and drier than normal weather primarily in the northeast.
Partially offsetting these results O&M expense increased by <unk> <unk> per share and depreciation expense increased <unk> <unk> per share in support of growth in the regulated business.
The market based business results decreased <unk> <unk> per share on the second quarter of 'twenty, 1 as compared to the second quarter of 2020 and lower results reflect increased claims in 2021 in the homeowner services group.
The parent results decreased <unk> <unk> per share on the second quarter of 'twenty, 1 compared to the second quarter of 2020, largely driven by higher interest expense to support regulated growth.
While on the topic of results I'd like to also reiterate what we told you last quarter with regard to the company's lower effective income tax rate.
This results from an increase in the amortization of excess accumulated deferred income taxes has agreed to through the regulatory process and is largely offset with lower revenue, resulting in no material impact to earnings and we will continue to see this impact as that amortization continues.
Moving on to Slide 13 consolidated results increased 22 cents per share for the year to date period compared to the same period last year results for the regulated operations increased 27 per share for the year to date period.
We saw a <unk> 50 per share increase from additional revenue additional authorized revenue from acquisitions and from the lower demand in the second quarter of 'twenty attributable to the pandemic.
Year to date results also reflect the estimated <unk> <unk> per share favorable weather benefit.
Offsetting these increases were increases in O&M expense of <unk> 18 per share and depreciation of <unk> <unk> per share all as a result of growth in the business.
The market based on business results decreased <unk> <unk> per share due to the higher claims in 2021, and homeowner services group, including the extreme cold weather across the country. During the first quarter of 'twenty, 1 primarily in Texas and Illinois.
And parent results were flat compared to the same period in 'twenty as higher interest expense to support regulated growth was offset by a number of small items that increased expenses in 2020.
Moving on to slide 14, the continued successful execution of our regulatory strategy is a key element of our ability to consistently deliver financial results and to date. The regulated business has received $146 million in annualized new revenues. In 2021. This includes a 100 million from general rate cases and step increases.
Excluding the agreed reduction in revenue from the amortization of excess accumulated deferred income taxes and $46 million from infrastructure surcharges.
We have also filed requests and are awaiting final orders on the 2 rate cases, previously mentioned by Walter and 2 infrastructure surcharge proceedings for a total annualized revenue request of $71 million.
I'd also like to add that generally we have received favorable regulatory decisions addressing our incremental financial impacts of the COVID-19 pandemic. We have received favorable deferral orders in most jurisdictions, including cost recovery orders approved by our regulators in Illinois, Missouri and Iowa.
In Pennsylvania, the administrative law judge issued a recommendation that would allow us to defer our incremental uncollectible expense, resulting from the pandemic, but would exclude other financial impacts such as waived late fees and additional interest cost.
Our Pennsylvania subsidiary has filed exceptions to the ALJ recommendation recommended decision highlighting among other things the favorable decisions. We have received in other jurisdictions, we expect a final Pennsylvania deferral order addressing these matters later in the third quarter.
Moving on to slide 15, I want to provide a few details on the very favorable debt offering we executed in May the company successfully completed a $1.1 billion debt offering in support of our $10.4 billion 5 year capital plan and to refinance approximately $327 million of high coupon debt.
We issued $550 million each of 10, and 30 year debt with coupon rates of 2.3% and 3.5% respectively. These are the lowest rates American water has ever achieved on a public debt offering and is representative of the companys healthy balance sheet and strong credit profile and we're pleased to have achieved such favorable.
<unk> to the benefit of our customers.
Moving on to slide 16.
To reiterate Walters comments earlier because of our strong performance and continued focus on execution. We are affirming our 2021 earnings guidance range of $4.18 to $4.28 per share.
We are also affirming our long term earnings per share compound annual growth rate of 7% to 10%.
As shown on slide 17, and as our results demonstrate we continue to deliver on our earnings commitment. We believe that delivering on results combined with our strong earnings growth and superior dividend growth expectations provides excellent value for our shareholders. We continue to outperform our peers and as you can see on this slide.
Currently we have delivered a total shareholder return of 126% over the last 5 years outpacing our peers in the Philadelphia utility index as well as the S&P 500 index.
And with that let me turn the call back over to Walter for some closing remarks.
Thanks, Susan and before we move on to your questions I want to take a few minutes to talk about our ESG highlights over the last 6 months.
We've been hearing from stakeholders that they'd like to receive more ESG data on an annual basis. We've published 2 new documents on our website first we made our environmental policy more visible by posting it on our ESG page. We also posted an ESG data summary, which will update annually.
We also continue to implement best practices and respond to surveys and reports for example, just last week, we submitted our annual CDP climate change response, which highlighted highlights American water's efforts to address greenhouse gas emissions and risks associated with climate variability as we've discussed previously since 2007 through year end 'twenty.
On 'twenty.
We've reduced our greenhouse gas emissions by approximately 36%. This means we're close to where our goal of a 40% reduction by 2025.
I also want to mention our recent recognition as a top score in the disability equality index for a third year in a row. We firmly believe we are more successful when our work force reflects the communities that we serve we're proud to be recognized by <unk> to be an ally to those with different abilities for.
Finally, as a reminder, we will be publishing in posting our 2019 to 2020 sustainability report this fall.
With that we're happy to take your questions.
We will now begin the question and answer session to ask a question you May Press Star then 1 on your Touchtone phone curiously on speakerphone. Please pick up your handset before pressing the keys withdraw. Your question. Please press Star then 2 at this time, we will pause momentarily to assemble our roster.
Our first question today will come from Shar <unk> with Guggenheim Partners. Please go ahead.
Hey, good morning, guys.
Good morning, Shar share.
So just a couple of questions here.
So first starting with the sale of the New York utility, what's where are we in the process versus kind of your expectations and guidance on what is the potential creation of these kind of water authorities you mean for the process, assuming the governor signed for them.
Well, we continue to work with Liberty cooperatively to get to the end point of selling the systems and we do believe that this sale will happen we're.
We're working with with the Commission staff with the commission with the Governor's office to advance this sale.
A lot there as far as the north shore water authority of the South for water authority. There was legislation passed waiting governors approval. That's just all part I think of how they're looking at this on long island to get this deal done. So again, we continue to work in a cooperative way with everybody to get to the endpoint. We're confident that this will this will happen.
Got it got it and then the infrastructure Bill in D. C. Authorizes almost I think 15 billion for Upa water funding in millions annually for like programs like lead production week reduction in sewer overflows do you sort of see this as a crowding out of sort of the <unk>.
Private capital like yours slowing.
Slowing potential muni acquisition growth or is it kind of a drop in the bucket for from a national perspective.
Yes, thanks for that Shar, and we welcome the attention to the water and wastewater industry.
Significant investment that's needed over the next 20 years.
We've talked many times about 1 trillion needed. So while this is good money to be put to good causes theres still a lot to go and again, we're just happy to be in the discussion with the administration as far as in the infrastructure plan.
We do think the money set aside for.
Yeah.
Yes.
Led service on replacement and also the P. Fast treatment is good and it will help many communities out there.
But again, it's a drop in the bucket compared to the overall spending this necessary and we don't see it impacting in any way our investment or our growth in the water and wastewater sector through acquisitions.
Got it got it and then just lastly, it sounds like.
Monitoring county is getting closer to filing for eminent domain for the local system assets from Cal M. There is a third party study that's I think for coming based on the June 28 growth could we just get an overview of sort of what this process could look like from a timing and valuation perspective.
Well as we know this is a multiyear process.
And right now they're working through getting getting approval from the local agency formation Commission.
And then once they get that approval.
You've got to go through a series of different trials the right to take trial, and then evaluation trial and so again it will take years to work through that but the first step is getting through the what's called <unk>.
Getting their approval before they can they can move forward with the condemnation.
Got it fantastic Thanks, guys Thats all I had.
Thanks Shar.
Our next question will come from Ryan Greenwald with Bank of America. Please go ahead.
Good morning, everyone.
Any additional color you can offer at this point around the Grand jury subpoena, whether it be timeline for resolution of potential applications as the process plays out.
Okay.
Yeah, Ryan It really is nothing more we can say it's ongoing our disclosure is everything that we can say about it at this point.
Got it and then.
You guys highlighted a couple of new state Legislative items, and then obviously the on for Bill at the federal level any key safety Youre watching for here just in terms of other constructive legislation that could come up that might be in earlier days, though.
Well in Pennsylvania, There is a Senate bill that's right in line with the water Accountability Act water quality Accountability Act. So we're tracking that.
That's working its way through in the Senate and then it will be introduced into the house over there. So we're expecting that to progress progress. This year in 2021, so keep an eye out for that that would be the fourth state as you know we were working with.
Missouri, and Indiana to get theirs and also start here in New Jersey. So we're we're thrilled that Pennsylvania is moving forward with that.
Great and then maybe just lastly in terms of the New York American water sales piggybacking off. The earlier question is the expectation that the whole New York American water operations would ultimately get sold on Liberty or do you expect the carve out with the new authorities.
Yes, we're working through that we do expect the.
The sale to go to Liberty in its entirety and then they would work through whatever comes after that.
Great I appreciate the time.
Thank you.
Our next question will come from <unk> Chopra with Evercore ISI. Please go ahead.
Hey, good morning team. Thanks for taking my question Jeff.
Yes.
Hey, Walter just a quick clarification on the on the New York American.
Susan I think you mentioned in the last call that the sale doesn't impact.
Whether new York and ends up being sold or not doesn't impact.
On a molecule equity and timing on the equity is that is that still the case.
Yeah, that's still the case for cash.
Perfect and then maybe just real quick.
Quick things on 2021, Susan just market based.
<unk> continued to be down this is the second consecutive quarter and you mentioned claims expense can you maybe just elaborate on that a little bit.
Still sort of the Texas event from Q1 dragging on for Q2 are what are their claims and sandbox for the.
Service territory, there there are more adverse than others.
Yes, let me make just a couple of comments and Walter can certainly weigh in I think the weather event that we saw on the first quarter in Texas, and Illinois that was really isolated to the first quarter, but we have seen a continuation of sort of higher claims experience I think really largely driven by more agile at home activities, we've got more for.
Folks at home and there's more pressure on systems, and so we're seeing more failures and more work being done.
By the the HOS team and so that that claims experience has been a bit higher than we would've expected.
And I think you can also expect higher claims just simply from growth in the business, we've seen more of that occur.
And there's also a little bit of higher marketing expense, we didn't call that out specifically, but a bit more marketing expense as we continue to introduce new products throughout the HOS territory. So it really is a factor I think of.
The pandemic itself and just.
Just a bit higher experience than we would've anticipated.
Got it that's Super helpful. And then just 1 last for me can you just share the July.
Sort of weather experienced across our service territory.
Well again, we benefit from having diversity across geographic diversity across our system. So we have seen some wetter than normal conditions in some areas, but offset by drier than others, but.
Overall.
I'd say again, some additional precipitation in some areas and others not so.
But all we can say at this point our guys.
It sounded like more like neutral okay. Thanks, guys much appreciate the time.
Our next question will come from <unk>, Kim with Goldman Sachs. Please go ahead.
Thank you at.
My first question is on the pace of M&A tuck in acquisitions. It seems like you guys still have a pretty healthy rate going there.
Good annualized customer addition rate debt.
That we should be embedding maybe in the 5 year plan and that might be net in your plan as well.
Yes.
On a half to 2.5% we're around $50.60.70000 customers a year is what.
You should think of in that term.
And again, we continue to build our pipeline we continue to build on our pipeline ensuing we've increased it from $1.3 to $1.3 million. We continue to have discussions with communities across our footprint because we can provide solutions and thats what theyre looking for so we're really proud of our efforts there and we just continue to build that pie.
The plan and we're really proud to have 37 different deals.
Signed up waiting to get regulatory approval across 8 different states. So the growth is not just happening in 2 or 3 or 4 states is happening across our footprint.
Understood.
Just a little bit more broadly.
As we see just continued increased focus on where that's at the federal level or state level on water infrastructure and water quality and whatnot.
And you guys always provide the breakout of the different investments you make on an annual basis, whether it's pipes sourcing others, where do you think.
The most upside opportunities exist as we.
Go through time, and if there's just to address some of these increased focus on on the guidance is that more technological advancements that we might be baking in just curious on your broader thoughts.
It's a real combination I would say.
Looking at the categories that water quality and resiliency are going to continue to get a good size of our investment and maybe even increasing over time, just because with all the storms and the weather variability out there we need to continue to make sure that our systems are resilient and we need to continue to address the emerging contaminants like like P fast and others. So it's going to.
It's going to require a significant investment.
Hopefully that answers your question.
Our next question will come from Jonathan Reeder with Wells Fargo. Please go ahead.
Hey, good morning, Walter and Susan a couple for you.
Start with Missouri, Walter the revised infrastructure surcharge program.
Is that going to allow you to extend the time between rate cases, or the fact that it kind of encompasses a wider range of eligible spend as a kind of keep you on that 3 year cadence.
And we will continue to evaluate that Jonathan we're just really thrilled that we're able to expand the program outside of St. Louis County.
<unk>.
Our teams worked hard to provide the input to the commission to see how important that is that we invest across our footprint and Missouri. So we're excited about that and also increasing the cap. So we can make more investment before we have to go into a rate case. So it may contribute in some way too.
On the timing between rate cases.
Okay.
Shifting closer to U, Pennsylvania, what's the latest on the commissioner appointments to fill the open sea plus commissioner suites.
I know governor works.
Through his 1 nominee back in May is there any any updates along those lines.
None none here.
The Pennsylvania Commission has always been great to work with.
Reasonable on their treatment towards us and we expect that going forward.
Okay are you assuming for maybe.
What do you anticipate in terms of the timing of the close of the York wastewater deal.
Is that assumed by the end of this year in order to get to that 300 million Emma.
M&A capital deployed.
Yes, we're assuming at this point the first half of 2022, we submitted our application on July 1 the commission is looking at it.
Once they deem it complete then.
Our processing and we again, we think first half of 2022.
Okay, so without it.
Struggled to get to that 300 million based on what's in the Hopper is there something I'm missing on our <unk>.
Can you just have enough pending deals that close.
Excluding the New York wanted to get you to that $300 million are or is that something that might fall a little short. This year, but then next year is going on more than offset it.
With New York deal.
Yes, let me say, we are confident in the $1.9 billion number.
And Thats.
That's from obviously the investment in our systems and the acquisitions that we're making.
Okay, and then maybe Susan going back to <unk> question.
Omar services.
The claims I guess, where.
Year to date, there are more in line with historic levels. How would you know the market based businesses year to date EPS compared to last year when it make up the entire 5 cents.
Lower Delta.
Yes, I think Thats, a fair way to look at it.
We've just seen.
Much higher claims experience.
And then we have in the prior periods and we really think again much of it is related to more at home activities.
The business continues to grow we continue to execute on our partnership arrangements.
We continue to look for new products and rollout new products in that business. So I think the business is just.
It's fundamentally doing what we had set out for it to do this claims experience.
Issue is 1 that I think again, it's directly related to just activity and.
We will hopefully see that mitigate some as we head into the latter part of this year.
And into next as we hopefully, although it's difficult to sort of imagine that on a day to day basis. These days, we'd returned to some sort of a normal.
Environment, where people are sort of out of the homes and backend work environments.
That really is the primary driver I would say the rest of the businesses is operating as we'd expect it to.
Gotcha, Yeah came on to getting back on that normalcy, okay. So it sounds like.
Other than that going well weather.
Yes.
Price.
On the kind of the claims level for some reason that does on I guess.
Overall trajectory of <unk>.
Our market based business to about 7 of 10% is still very much I guess kind of where you would expect it to be absolutely does.
Had a temporary hiccup.
Yes, I think that's right and that's the way to look on it.
Okay, great. Thanks, so much for taking my questions a day.
Thanks, Jonathan.
Ladies and gentlemen for conclude our question and answer session I would like to turn the conference back over to Walter Lynch for any closing remarks.
Thank you for joining our call today, we value your participation in the work you do on behalf of your clients, we hope that our open and transparent discussions give me confidence in our company and the investment of our stock.
You have any additional questions. Please call the IR team there'll be happy to answer them, thanks, again and be safe.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.