Q3 2021 Clever Leaves Holdings Inc Earnings Call

Good afternoon, everyone and thank you for participating in today's conference call to discuss clever leaves his financial results for the third quarter ended September 30th 2021.

Joining us today are clever leaves the C E O Kyle Detwiler and the company's C. F O Hank Hague before I introduce Kyle I remind you that during today's call, including the question and answer session statements that are not historical facts, including any projections or guidance statements regarding future events or future.

Financial performance or statements of intent or belief are forward looking statements and are covered by the safe Harbor disclaimers contained in today's press release and the company's public filings with the S. E C.

Actual outcomes and results may differ materially from what is expressed in or implied by these forward looking statements.

Specifically he please refer to the companies Form 10-Q for the quarter ended September 30th 2021.

Which was filed prior to this call as well as other filings made by clever leaves with the S. E. C from time to time. These filings identify factors that could cause results to differ materially from those forward looking statements.

Please also note that during this call management will be disclosing adjusted EBITDA.

This is a non-GAAP financial measure as defined by S. E. C regulation G. A reconciliation of this non-GAAP financial measure to the most directly comparable gap measure and a statement disclosing their reasons why company management believes that adjusted EBITDA provides useful information to investors regarding the companies.

Financial condition.

And results of operations are included in today's press release that is posted on the company's website.

With that I will turn the call over to Kyle.

Cody and good afternoon, everyone. During the third quarter, we made key operational advancements that a physician does for continued to execution on our long term growth strategy, we sustained you're over a year growth across revenue and gross profit as their U S. Nutraceutical business continued its recovery from.

Last year's pandemic related impacts.

Cannabinoids segment, we have scaled or Portugal cultivation operations and improve their positioning within several court international markets, even as segment level revenue comparisons for the quarter were impacted by variability around the timing and size of our shipments, which can cause our sales activity to fluctuate from quarter to quarter.

<unk> with their continued production efficiencies and growing base with global partners, we are establishing our business as a leading multinational operator within the global cannabinoid supply chain.

Cross several of our core Geography's, we've made meaningful progress and canceling or operational foundation, beginning in Portugal, we completed construction on our cultivation expansion during the third quarter.

This point well ahead of the timing and expectations, we previously provided as well as on budget.

This expansion adds another hundred and 50000 square feet, two or cultivation footprint, bringing her total Portuguese cultivation capacity up to 260000 square feet. With this addition, we are now able to achieve greater levels of productive capacity at the same levels of SG&A, which we expect to leave.

Two increased economies of scale.

Furthermore, this expansion also include key design features that we believe should enhance our product quality and expand our ability to innovate. These include larger air chapels and new fans and improve air circulation as well as a fully dedicated r&d's facility that has new L. A D lights and C O two injection.

Abilities taken together these technologies and expanded capacity improve our ability to stabilize invalidate new candidates genetic varietals, which is an increasingly important and challenging feet.

We also remain on track with construction on a new post harvest facility, which we still expect to be operational and E. U G. M. P certified by the end of 2022.

Our team has worked diligently to begin pathfinder shipments from Portugal, completing shipments of high Thc's flower to Australia at the end of Q2 and even to the United States in October as I'll discuss later with this additional capacity and new capabilities. We believe we are well positioned to serve.

Growing demand among our international customer base with even greater scale inefficiency.

And Columbia, we now have the opportunity to complement are ramping Portuguese flower production, an existing commercial relationships. Thanks to a decree signed by Colombian President Ivan UK. This past July.

Decree allows for the commercial export of medical cannabis flower, which we believe has the potential to double our total addressable market from the Colombian operation.

We were honored to host President do K for this historic signing at our cultivation facility near Bogota, and we remain attempted to further legislative progress on the accompanying resolutions that determined the timelines and guidelines that will govern these new flower exports.

We believe are efficient cost effective production processes significant scale experience selling flower products in Portugal, which is quite a different sales and technical process compared to extracts established commercial relationships and E. U G. M. P certifications, which already include flower product.

Put us in a strong position to capitalize on the sizeable market opportunity. Once subsequent regulations are formally released we're capturing new growth opportunities and market entry points not only abroad, but also here in the United States. After launching the project change lives initiative in June two a 's.

Stablish to Cleveleys brand in the eyes of U S. Pharmaceutical research, we have already announced our first two University research partnerships with a U C Davis and the University of Missouri.

Through supporting projects like these weird leveraging our industry, leading certifications and quality commitments to become a trusted supply partner to U S research institutions undertaking potentially medically significant candidates studies and research further we are working to create new opportunities for.

The advancement of medical treatments and patient access by allowing legal candidates ingredients in pharmaceuticals to cross borders freely.

Lastly project change lives in our ensuing university partnerships demonstrate the potential market entry opportunities on which we are able to execute through a gradual pathfinding cadence and the foundation of trust, we build with all of our partners, whether they're in research or commercial settings.

While this initiative began publicly as a charitable research initiative. We're also very pleased that has led to a historic commercial milestone as well, which I shall speak to later or.

Our early success with project change lives builds on the robust foundation, we have already established in the United States with their herbal brands Nutraceutical business, where sales could continue to rebound nicely from last year's pandemic related impacts and our distribution footprint has grown yeah.

Yet in this market and others I want to remind everyone that we are still in a very complex and evolving operating environment from both the pandemic recovery perspective, and from a regulatory perspective, and the U S alone. We're closely monitoring macroeconomic factors surrounding labor availability wage pressure.

Sure and assorted supply chain and transportation challenges in our nutraceutical business. These.

These haven't had an increasing impact on domestic consumer package, good businesses and Hank will be on shortly to touch on those factors as they relate to our margin expectations for our non cannabinoid segment.

As for our cannabinoid segment aside from the significant regulatory opportunity presented to us as one of the largest producers of candidates flower in Colombia, we were very pleased by the progress we've made with our early commercial ran with customers. This industry and this year in particular has created challenges and we and.

Anticipated several key commercial initiatives to activate late in the year, which have timelines with higher uncertainty. We now expect some of these commercial opportunities to materialize later than previously anticipated.

Some of these delays are related to fine tuning quality standards and product preferences for B, two b clients, which are typically expedited within person visits and these visits have often been postponed or challenging to take place at all due to COVID-19.

Other delays remain the regulatory in nature, such as product registrations audits or other authorizations. Some delays are the result of product availability.

For instance, we are now planning for a quarter or more of delay and the full launch of our Brandon medical cannabis products in Germany, while we did not a mask inventory suitable for a full launch as originally planned we chose to move forward with a soft launch to test invalidate the product market fit as.

As well as our operational capabilities.

Results, so far have been encouraging as the Bachelor product offered sold out to German pharmacies in less than 24 hours, which suggests a growing demand among medical customers in the country as well as demand for our specific product designed far in advance of lunch.

As we deepen our presence in existing markets and continue working to expand our overall footprint. We recognize that there are complex global factors out of our control related to both Rutter post COVID-19 supply chain recovery and cannabinoid exports specific approval shipment and quality control process.

He's however, we have delivered solid execution on the factors that are within our control such as our pharmaceutical grade quality and strong operational efficiency, maintaining a suitable inventory of product is also essential as out of stock alerts are quite common in Germany. So we have decided to.

<unk>, a smooth brand growth at the expense of more intermittent sales even if this moves critical revenue realizations out a quarter or two.

Are incremental achievements throughout the third corps demonstrate continued early progress undergrowth objectives, we expect our advancements in some of these court geography's to help us leverage additional opportunities both within and outside of these markets as.

As well as continue optimizing the value we provide to our expanding international partner network.

I'll have more to share on our strategy and some additional operational highlights later in the call, but first I'd like to turn the call over to her CFO N K to provide more details on our financial performance for the third quarter ink over to you. Thank.

Thank you Kyle turning to our financial results revenue in the third quarter of 2021 increased 3% to 4 million compared to 3.9 million in the year ago period.

This increase was primarily driven by the continued strong performance of our non cannabinoid segment as sales and our nutraceutical herbal brands business continued to make a healthy recovery from last year's pandemic related impacts we.

We experienced some softness in our cannabinoid segment due to lumpiness in our pathfinder shipments and sales cycle.

As we've previously discussed this lumpiness is a function of the many regulatory approvals and quality control checks.

Involved in our production and export process, which can drive delays in shipment completion and individual contract ramp time.

Our ability to provide high quality pharmaceutical grade products and it's here closely to evolving regulatory standards around the world is the central tenet of our value proposition as we continue working to ramp our existing contracts and enter new global markets are all in.

Cost per Gram of dry flour in the third quarter of 2021 remained flat at 15 cents per gram compared to the year ago period. This was achieved largely due to continued cost efficiencies we are driving in Columbia.

Though upset by production costs associated with ramping early stage operations in Portugal.

As our Portugal operation become more mature we continue to expect our costs to drop over time as we capture economies of scale.

Gross profit in the third quarter of 2021 increased 22% to $2.5 million compared to $2.1 million in the year ago period, resulting in a gross margin of 62.9% up 1000 basis points from last year.

The increase was largely due to strong performance and our Neutraceuticals business.

And we believe positions us to achieve our previously disclosed gross margin target up 61%.

While our nutraceutical business has continued to rebound.

We also anticipate that several pandemic related concerns around wage pressure transportation efficiency and the availability of both labor and materials will pressure on margins over the coming quarters.

We are staying closely attuned to these developments across our business and the broader U S economy and remain committed to maintaining the optimal quality and continuity of our operations for our workforce and nutraceutical customers.

Operating expenses in the third quarter of 2021 or $12.2 million compared to six point.

And the ZIP code period, the increase is attributable to in approximately $2.8 million increase in non-cash sure based compensation expense as well as insurance and professional fees related to being a public company.

We have continued to prioritize prudent cost controls across our organization in order to maximize our operational efficiency through the end of 2021 and into 2022.

Net income in the third quarter of 2021 increased significantly $1 million compared to a net loss of 6.1 million in the year ago period the.

The increase was primarily attributable to games on measurement of warrant liability of $9.1 million and gains on debt extinguishment and part offset by the aforementioned increase in expenses.

<unk> to hire shared based compensation expenses.

And the costs associated with operating as a public company.

Adjusted EBITDA in the third quarter of 2021 with negative 6 million.

They're too negative 3.7 million in the year ago period.

The decrease was mainly driven by public company expenses at September 30th 2021, our cash balance was 46.2 million compared to 79.5 million at December 31 2020.

With the decreased primarily attributable to our operating losses and capital investments during the year.

As a reminder, we announced a $25 million financing from Sun screen Bancorp, a joint venture initiative sponsored by sundial growers in July as well as the full repayment of our secured convertible notes.

March 30th 2022 at 90% of par value plus certain expenses.

He financing came in the form of a secured convertible note with a three year maturity and an interest rate of 5% per annum, which was lower than the rate prior 2022 convertible notes.

During the quarter, we reduced our total debt by over seven and a half million dollars.

I am pleased with the progress we've made a news front, so far and we will continue to be disciplined and selective with how we deploy our capital in order to maximize shareholder value.

While our performance proves our execution on our key growth drivers, mainly securing new partnerships between the pathfinder shipments daych within existing agreements.

Can be evolving too impeded and scaled commercial shipments product shipment and supply chain delay have challenged some of our progress towards our previously stated topline expectations for a full year 2021 financial outlook.

As a result.

Now expect a full year 2021 revenue to be between 14 to 16 million.

Add to the previously stated branch of 17 to 20 million with that being said gross margin is expected to remain at approximately 61%.

And we have narrowed a full year adjusted EBITDA expectations from I previously stated range of negative 24 million two negative 26 million to a revised range of negative 24 million to negative 25 million. Despite the reductions to our top line guidance.

We believe our ongoing cost containment initiatives will allow us to achieve our bottom line for cat.

In terms of our capital expenditures, we remain on track with I previously disclosed capex expectations of approximately 10 million.

We will continue to prioritize our strong operational efficiency and remain disciplined stewards of capital as we progress our current supply agreements and seek to pursue additional revenue growth opportunities.

In developing cannabis markets around the World. This concludes my prepared remarks, I'll turn the call back over to Kyle Kyle.

Okay.

Before we open up the call to questions I wanted to briefly review some of the progress we've made in our core geography's subsequent to the quarter.

In the United States as I described earlier, we launched a research oriented initiatives called project change lives while important in its own right. We are pleased to see this initiative open commercial avenues. One example of this commercial Halo effect of course is the milestone achieved of successfully.

Exporting and selling 30 kilograms of high T. H C candidates flower from our Portugal facility to biopharmaceutical Research company a U S. Based D E. A licensed pharmaceutical company that develops federally compliant active pharmaceutical ingredients for plants.

Therapeutics flower product will be used in brc's pharmaceutical development projects. This export serves as an important commercial milestone for us as it continues our progress from a multi year U S. Pathfinding exercise, including her first D E. A authorize T H C and C V D.

Exports to the United States in 2020, we believe these early shipments are positive indicators of an opportunity to determine and execute upon a viable regulatory pathway for U S market entry.

On a collaboration level biopharmaceutical research company is also are important partner for project change lives. So we are proud to continue strengthening this partnership and driving mutual benefits for our companies, including solidifying brc's ability to transact internationally and.

Identifying future joint opportunities that can leverage our shared commitment to strict quality controls and adherence to D E a regulations.

To discuss or U S opportunity in greater depth, one of the primary motivation for requiring herbal brands in 2019 was to gain not just a product, but the capability as we prepare to unveil R. U F. C V D brand, which we believe remains on track to launch in queue for 2021 or 212.

2022, we are focused on developing a timely brand in an accessible price point.

We plan to leverage the learnings we've gained in the U S. C V V industry as well as herbal brands diffuse distribution network to steal the brand.

This will also represents an opportunity to develop stronger direct to consumer capabilities, a common format for most U F. C V D brand today.

This product once you should also yield insights experience and relationships, which may be relevant for a U S. T. H C product launch down the road pending regulatory evolution in the United States. We have already established Cleveleys as an early leader within the Colombian cannabinoid export market with our shipments.

Rising over 55% of the country's total oral solutions isolates and extra cannabinoid exports by dollar value with a dominant share of oral solution and islip too high value and product categories, which are 60 by the company's very certification year to date.

Through July 31st.

We're also prepared to leverage our local operating advantages in Colombia by deepening our presence in the country's domestic market.

In October we announced the commercial supply agreement with farm a lamp P. H L laboratories, a Colombian healthcare group specializing in the commercialization and distribution of medicine dietary supplement and cosmetics under this agreement we will supply the pharmaceutical grade cannabinoid formulations former lab.

For the distribution of magistral medications in Colombia, which are used to treat painful and inflammatory pathologies. In addition to allowing for the commercial export of medical cannabis flower President <unk> July decree expanded the number of drugstores authorized to distribute itself magistral.

<unk> Mendez small can't employed in Colombia, enhancing the availability for patients as such this partnership represents a historic opportunity to provide locally produced pharmaceutical quality products to Colombian doctors and patients given.

Given the challenges of shipping controlled substances internationally. This regulatory development could present, an opportunity for a domestic or a non export demand center of scale for our Columbian operations, which has benefited you asking Canadian licence producers given their domestic source of demand, which.

Does not require international export protocol are growing opportunity within the domestic Colombian candidates market advantage by a national regulatory framework that now offers expanded legal pathways for safe regulated patient access to cannabinoid based medications in fact certain cannabinoid sales.

Including clever leaves products are now eligible for government reimbursement within the country because affordability for patients is likely a constraint on market growth pharmaceutical reimbursement could unlock potential in Colombia, a country with a population of over 50 million people.

Quickly summarize a few of her other emerging markets a ramp in Brazil remains dependent upon critical regulatory approvals of various products progress in this market is gradual as the country's health regulatory agency and visa continues to evolve and learn about cannabinoid based therapies.

We have also made gradual progress in Australia as we work closely for their supply partners to move our partnership for and follow up on the milestone of our first flower shouldn't from Portugal last quarter.

In Israel, we successfully navigated the evolving quality regulations meet referenced on private calls, but if faced some additional delays in 219 commercial relationships do do pandemic related travel restrictions and an uptick in nationwide Delta Berrien cases in August and the necessary fine tuning of products.

Based on B, b client requirements and preferences.

In addition to monitoring the status of quality and regulatory standards around the world. We were of course taken care to follow pandemic related to health and safety guidelines that govern our current and targeted geography as we further ramp or internationally partner network. Despite these headwinds.

As we look ahead, we will work to get our expanded cultivation capacity in Portugal license and ready for harvest to complete our new <unk>, Portuguese post harvest facility and secure E. G. M C certification and to monitor regulatory developments and drive internal preparations for the eventual commencement a flower sale.

<unk> from Columbia.

Across or cultivation and production operations, we remain focused on careful cost management and will work to continue delivering bottomline improvement as we further leverage our efficiencies.

I am grateful for routines tireless efforts to advance or existing contracts work through changes in quality standards and approval processes across our current geographies and source new markets and growth opportunities that we can add to a pipeline. While we are still in the early days of our strategic initiatives the robust footprint we're building.

<unk> is allowing us to play an important and growing role in addressing underserved patient and research needs around the world.

Well now open up the call for Q&A.

We will now begin the question and answer session to ask a question you may across Star then one on your Touchtone phone.

If you're using a speaker phone please pick up your handset before pressing the keys.

Looked all your question first started then too.

At this time, we will pause momentarily to assemble our roster.

First question today comes from Aaron Gray with a Lance Global partners. Please go ahead.

Hi, This is Andrew bond on the line for Aaron Great. Thanks for taking our questions.

Just wanted to ask where you stand in terms of adding other pharmaceutical partnerships and maybe can you talk about whether there are any limitations to having multiple partnerships within any specific region. Thank you.

Oh, great Yeah, Thanks, Andrew for the question.

You know I think we are consistently focusing on the pharmaceutical channel in in most geographies that we the operator I was just in Germany, a couple of weeks ago meeting with F. E Farm for example, one of our first named pharmaceutical partners.

In in Europe, and we continue to work on developing new relationships with new pharmaceutical companies in in our core Geography's as you mentioned.

Pharmaceutical companies do have a a standard is conducting business, which may be a bit different than the traditional consumer products space often contracts are longer and links there could be take or pay components to them pricing tends to be a bit better for suppliers.

Such as Cleveleys, but but once in a while you do entertain exclusive.

Exclusive relationships either for a certain product or product category.

To compensate that pharmaceutical partner, which may be making significant investments downstream for example at the farm is an expert in going to market with pharmaceutical products in the country of Germany. They have a sales force that needs to be educated you know, there's a literature that will describe.

Their products so there's a significant.

And symbiotic investment by both companies and and often to to make the partnership.

More more aligned you know, we we look to engage in exclusivity arrangements from time to time.

Great great. Thanks for that detailed cow really helpful color and congrats on the developments in the corner I'll pass it on.

Our next question comes from the <unk> with Kayla. Please go ahead.

Hi, Good evening. This is Gerald task rally on for Vivian Thanks, very much for taking the questions.

And so on Germany tile would love to get your thoughts on the <unk> on the new ruling coalition the potential.

The calm country Illegalize candidates for adult user extend wreck and if that happens just the implications or the possibility a potentially accelerating E. G. M. P certification any thoughts you can provide there would be helpful. Thank you.

Okay, great. Yeah. So the question Gerald it certainly an exciting time to be thinking about the potential changes in German candidates regulation.

Of course, while there are a number of people, including myself, which are you know very.

Very optimistic that the new political regime structure in Germany, you know often referred to as the Stoplight coalition will lead to a expansion of the medical market and or the accretion of adult use market now none of this has been set in stone the government is still.

For me and there is there's nothing at this point, which can provide.

Concrete.

Certain key on which direction. It could go however, you know as we are very focused on this market I think there are some interesting directions as to go <unk>.

Because the German market has established itself as a pharmaceutical market not a medical market for Kansas, but a truly pharmaceutical market. The dependency of the pharmacy supply chain is likely or could possibly play a larger role in and ate an adult use a market that may.

May or may not require E B M T certification.

As well, even if it's for an adult use product, which I might mentally think is something closer to an O T C product as opposed to how you know an American may think about a kind of adult use product. So I think there's a lot that has yet to be written.

We're not exactly sure how this could work, but you know I think no matter, what I I I personally do not believe that there will be a a neat.

The tall pole in the tent will not be the E. U G. M. T certification from Portugal, I think the tall pole in the tent will be the actual implementation of of the German regulation, but clever leaves is very well positioned already with the E. U G. M. P certified production in Colombia, as well as you know being close in.

Portugal.

Got it that's super helpful caller, Thank you Kyle.

My next one for me is just on the nutraceutical side of the business and C. B D. I I I know you touched on it in terms of route to market and launch in your prepared remarks, but I guess just as you assess the the current landscape now.

Now that things revolving coming out of Covid, just I guess, you're brought outlook on on U S. C. B D as as a category, where we go from here and in particular headed into 20 twenty-two I guess just your <unk> your broad thoughts on the <unk> on the overall use category that'd be helpful. Thank you.

Okay, great and and and thanks for that question.

You know, we believe it cleverly snake the C V. The industry like many new nutraceutical categories has experience sort of a first wave of euphoria, a number of participants entered into that sector and many of them didn't even have sustainable.

No brand or value propositions for for American consumers and so you know there is it appears that there is a bit of a consolidation in the industry. Both in the number of of players that have significant sure as well as the number of players that large retailers.

Are offering this is of course with the backdrop of of significant you know regulatory changes or uncertainty from agencies like the U S. S. Da However, you know we do believe that a C. V. D product has a strong value proposition for the American consumer.

But it.

There is not a brand that we believe addresses a significant opportunity in the low price point and and in a more fashion forward approach to consumer products. I think there is a lot of discounting and it seems to be occurring in the cannabis or in the C. V D World today, even saw products going on.

You know a an installment type marketing orientation, and we think that creates a great opportunity. So I'm I'm gonna be very excited to unveil the brand and its its promise in the next quarter or two but hopefully that gives you a little bit more insight into how we're thinking about it.

It doesn't D. Thank you very much and I will pass it on.

Again, if you'd like to ask some questions. Today. This started then one started then one to ask a question.

Our next question comes from Pablo's <unk> Cantor Fitzgerald. Please go ahead.

This is Matthew Baker on behalf of Pablo. Thank you guys for taking our questions and congrats on the corner. So we have two questions today, Firstly, how much progress you guys, making in Germany, and could you guys give a bit of color and talk about your market share in flower and oils there.

[noise] great. Thanks for the question Ma'am.

I think you know with Germany, you know, we think about the the the market in a couple of different slices. So there is the clever leaves one brand and then there is sort of a <unk> operation and then with each of those categories, you've kind of think about a flower in an X correct market and so I think the social answer.

Your second question about market share in Germany as well.

Our focus and our partnership with Effie farm took a significant amount of time to to develop and it will take us.

Amount of time and energy to to profit from that perch, it but.

We are working hand in hand with them and that product portfolio is an extract focus a product.

Which is a long winded way of saying that you know we haven't begun to enter in terms of revenue realizations.

Or steal that you're in pharmacies.

That that market and we believe that is approaching very quickly and so then if we flip to the far side of the house I.

I mentioned in my remarks earlier that you know we have a a cleveleys brand called <unk>, which is preparing for its true debut in the German market and we had a sack lunch, which sold several kilograms with chronic but nothing on the scale of what we would consider a full lunch. So I think.

<unk> because that panicked sold out very quickly and what's the other day. We believe that is a very positive sign about the product markets. It but you know our next step is the skill skilled at brand a loan check which is today also a single strange. So again, it's a bit of a you know let's learn to crawl before.

We walk before we run.

But I think those are all very positive indications of a bright future for for extra Germany and of course to the question earlier.

No nothing yet that we have factored in for the potential changes in adult use or recreational regulation.

Alright. Thank you for that just one more question regarding your up it seems distribution partners are extremely important in that market. I was wondering if you guys could talk about your your distribution partnerships there.

Oh, Yeah distribution definitely is a critical part H H of this industry and you know as movies controlled substances across international boundaries requires a lot of effort on on both sides of the border. So to speak so it's really a country by country effort you know.

I would say in in Germany, you know the distribution partner is I'm not sure if I would even really use that word you know it's more of of the importation partner, who who works through the various quality steps you know often required to have GMP certification or G. D. P certification.

But you know true distributors like a whole line pharmaceutical distributor you know, we haven't yet sculpted Ah Ah Ah Ah strategy or partnership there I think as we scale up that will become.

More relevant and and as Germany is sort of a a island in and of itself.

You know a distribution path in other geographies is still add still early stage for us it's not necessarily clear that we may may need one again, it really just depends on the particular country.

[noise] got it thank you call.

Ladies and gentlemen, this will conclude our question and answer session I would like to turn the conference back over to Mr. <unk> Detwiler for any closing remarks.

Thank you and I'd like to thank everyone that attended to call today, and we look forward to speaking with our investors and analysts when we report and a fourth quarter and full year results in March. Thank you very much.

The conference has now concluded. Thank you for attending today's presentation and then now disconnect.

The conference has now concluded thank you for attending today's presentation.

<unk> disconnect.