Q3 2023 Vodafone Group PLC Trading Statement Call
We need to become simpler.
From a financial perspective, our productivity has improved significantly and we have reached a sector leading position.
We've achieved this by leveraging our scale standardizing best practices and deploying digital technologies.
However, we have also become more complex we are not a jive as we once were.
And it does not need to be this way.
As we have moved decision making into the market. We have now reduced the commercial and support teams in the group Center.
We will also ensure that our rigorous industrial model is applied to any operational activity that is shared for the benefit of the markets.
The actions, we've already undertaken will deliver around 50% of the $1 billion Opex target I set in November .
And finally onto growth.
My key target is to continue broadening our price actions across our markets to meet the ongoing cost pressures and support our investments.
We also need to reengineer, our commercial model in Germany.
We have a new management team in place, who have identified clear opportunities to improve our sales and marketing effectiveness.
We will redefine the range of propositions available across our channels as well as simplifying both our front book and back book plants.
We'll also continue to reallocate more investment towards Vodafone business, where we are growing consistently and gaining share in almost all our markets.
I thought it would be useful today to share as clearly as possible what I am working on and what our direction of travel is.
I'll now hand over to the moderator for your questions.
Thank you Margarita reminder, please keep to one question to give all analysts a chance to ask a question.
First question comes from David Wright.
If America, David <unk>, Camra and <unk>. Please go ahead.
Okay, I think of all the clicks I hope you can hear me Margarita and CV.
<unk>.
Thank you very much for taking the call today.
So.
If we just think.
Nick's departure.
Both U.
<unk> suggested there was a frustration with the execution of the strategy the pace of execution.
The strategy.
Now that may or may not be true, but I think the share price clearly tells the story from investors' perspective.
It seems to me today.
That you are changing some of that strategy and.
And in particular, there seems to be more focus on.
The autonomy to local market autonomy for example.
I guess the question I have is to what.
Extends all your empowered.
<unk>.
The portfolio of strategy potential M&A actions et cetera, now for instance.
If.
That was an approach to acquire an asset from Vodafone are you empowered to accept that and I say that again with a mind on reports of potential change in the management structure.
So are you empowered to.
To facilitate large scale M&A.
Guess on that particular point, maybe an update on the UK deal.
Or is that something that is now.
Perhaps not on the agenda so.
So I guess, that's my question to what extent.
Beyond the operational strategy do you feel empowered to change the portfolio or accelerate that part of the original strategy. Thank you very much I hope that's clear.
Very clear David.
First of all let me say that there are no constraints in terms of managing the portfolio.
In terms of of course, I'd say my priorities remain the same.
And I would say two directions. The first is <unk>.
Completing the Taiwan joint venture you have seen the minority tender offer results now coming through and we continue to progress within our target of.
Closing.
The JV by the first half of calendar 'twenty, three so no changes that and.
And then the second priority remains very much consolidation.
Again, nothing changes still four markets we see.
In terms of opportunities for consolidation and these remain.
Italy, Spain, the U K and Portugal and to your question around the UK again.
Continuing.
To progress the discussions with us on our UK merger, which we think would be very important and beneficial.
To us, but also to the UK market more broadly.
On top of that of course, you will have seen.
Completing the sale of Hungary, just yesterday and then completing also the transfer of Egypt into Vodacom in December .
I was focusing in my introduction very much as you pointed out on our organic performance because I think in the portfolio, we need to continue to progress in the direction, we have outlined but it's really important for me that we bring Europe back to growth and we improve.
Operational performance.
We have said today, we are expecting to see a gradual improvement from now on in European performance, but it's really important for me to create the right conditions.
Operationally and Thats, where our focus to the changes that we've made.
As a team in the last few weeks I was mentioning earlier.
Sure.
The evolution of full authority on commercial decisions and customer decisions to the markets. So that we are more agile and closer to our customers.
This simplification of.
Our central functions.
And also.
The changes we've made to the management team.
Was saying earlier the actions we have taken also in the last few.
Few months collectively allow me to say today that of the $1 billion additional cost targets, we mentioned in November .
Actively around 50% is now is now fully operationalized. So I would say chief focus is re acceleration of organic growth for me.
And just to clarify when you say consolidation in those markets.
That could be Vodafone consolidated they could be asset sales just as easily as they could be assets acquired is that correct.
Nothing has changed on our portfolio management criteria you will remember.
I think we have proven also with the recent transaction that we can be pragmatic, we're testing our assets against possibility of delivering return fits within our regional scale and importantly are we the best owner of the business nothing has changed from that perspective.
Thank you very much.
Thank you and our next question comes from Andrew Lee at Goldman Sachs. Andrea. Please go ahead.
Good morning Margaret.
So thanks for your questions and your focus on execution that you highlighted just following on from David's on portfolio management.
Specific question on German commercial momentum.
Highlights of the last on the last call better commercial momentum in Germany.
And you're.
You raised prices in October on the back of that but we've seen west Kpis as a result this quarter.
For us at least tangible evidence of improved commercial momentum has been on the ground.
So the question is.
Seeing that gives you confidence and how do you turn around that pool per foot performance.
Causes crossing play within that thank you.
Thank you Andrew I think this is.
It's an important question for today.
No.
Let me take a little bit of time to go through.
What we see so first of all you're absolutely right.
Our performance in Germany is clearly disappointing.
On the service revenue side, we did stay in November that the second half of the year would be would be the low point for the market as we have the historic losses that were suffered from in the last year flowing through and this is what's happening today.
On the net adds you mentioned the net ads specifically there.
The change in trend issue on this very much the result of our price moves that we did in the middle of November .
So we have been the first to reflect the inflationary pressure in our pricing in Germany, and we are suffering a degree of pain for that negative net adds in fixed broadband and also roughly stable.
<unk> customer base in mobile this is a direct consequence of our price actions that is simply we have seen our gross add share moderating as the as a consequence.
Now the flip side of the volume impact is Apple.
And I think it's important we always look at these two in conjunction and on the outperformed our inflow <unk> actually increased by the same percentage in both fixed and mobile fixed we increased our headline prices mobile will reduce the promotion, but the result was the same of 15%.
Inflow output increase.
Since mid November in Germany.
Now it's worth for me, calling out the fact that the dynamics of the market around us have been very different though in fixed and in mobile.
I would say somehow surprisingly in mobile.
We have reduced our promotions, but the wider market has remained very promotional.
Hi data allowances in particular.
Fixed was a different story because in fixed.
Promotional intensity in the market selling moderated since we've taken our price actions.
The.
But us having taken a price action on the front book on the new customers is also now giving us the optionality to take action on the back book on our existing customer base.
So thats for pricing.
In terms of then maybe operations.
Definitely we have the opportunity to unlock better performance as I said on one end the remedial actions of the <unk> are now complete.
Our systems are working.
If Sean Covey, the impacts on the cable network behind US I think it's great to have seen our net promoter score on the cable network continuously growing month after month after month.
We have invested that and we are now actually back to the level of customer satisfaction that we add.
So thats good however.
The observations.
Making is that as we were busy resolving our.
Operational issues.
The market in Germany is also move dawn move down in terms of retail it's not what it was pre COVID-19 move down in terms of proposition for example.
How many plans are.
Very much in focus.
So we have remained a little bit behind from that perspective, but we have a new team now not just flipped the new CEO , but also a new consumer commercial director and they're busy.
Actively.
Engineering, our sales and marketing approach in Germany and.
In a nutshell, because I know I'm, taking too long Aldo everyone is very interested in Germany.
We are changing Tracy.
First of all simplifying the front book and the back book offers.
In the market. This is something you have seen us doing in the other markets in the last 18 months, but Germany is not done it yet number two we are reviewing the range a proposition that we distribute in the various channels to make sure, particularly weight gain competitiveness in direct.
And then number three we are investing in that.
I would say the quality and simplicity of our customer services.
Let's next.
We continue to see the same evolution on the revenues that we were seeing before.
In terms of Reacceleration, starting from Alto into FY 'twenty four.
These are a little bit the things. We are we are currently working on.
Thank you.
Thank you Andrew.
Our next question comes from Carl Murdock Smith at Robert Baird.
Please go ahead.
Good morning Margaret.
I just wanted to ask if you could provide us with an update on the energy cost headwinds that you gave us.
<unk>.
The updated targets. Thank you very much.
So in a nutshell.
We said, we had a 500 million headwind into FY 'twenty for this is now just under $400 million.
Clearly you have seen the dynamics of the energy markets moderating and we have effectively gone back to our normal hedging policies. So when I say just under four under me and it's on the back of having edge.
80% roughly of FY 'twenty for effectively 100% all the way to December already locked in and then for.
For the final quarter Dale edging to progress during the year together with the PPA plan.
The other element we have now more visibility on is the dynamics beyond FY 'twenty for the full FY 'twenty four headwinds so the $400 million of just mentioned is going to unwind in FY 'twenty five 'twenty six we received from the prices we have locked in with Ppas as well as obviously the former.
<unk> curves.
Fantastic Thanks very much.
Thank you.
The next question today comes from Emmet Kelly at Morgan Stanley .
Please on mute yourself a go ahead.
Yes, good morning, everybody and good morning Margarita.
My question is actually the same as I asked in November which is if you could give a quick update on Italy.
The competitive and pricing trends youre seeing there and any preliminary thoughts margarita on a potential <unk>.
Change in Italy, and what that could mean for Vodafone. Thank you.
Sure.
First maybe starting from the end.
I don't see major movements in our performance in Italy in the coming quarters. There are a number of puts and takes I wouldn't get into we see our business revenue is accelerating.
We clearly will see.
And DNO impacts.
Going away, but roughly similar is that we should expect it to be.
In terms of competition again very very intense.
In general there have been a little changes at the backend of the low end.
For the consumer market, we have seen the lowest price point moving from what used to be five year or two seven euros today admittedly still incredibly low, especially for the allowances that that are being even so we're still selling effectively traffic well well below cost.
So that's the that's not changing.
You mentioned the discussion on <unk>.
I think this is an important point I think there is a clear acknowledgement in.
The new government that the situation of the telco industry as it is today is not delivering sufficient sustainable returns for all the players involved to actually invest in Italy is falling behind on.
On <unk> deployment, even relative to the rest of Europe . So it's a clear issue.
The discussions are ongoing.
Point on the table as well.
Moving from 22% down to the numbers, which is most widely.
<unk> two is 10% and this is allowed by the European rules now so.
So local decision.
The reason why the discussions are ongoing is clearly this request funding.
From from the government.
And therefore is the funding has to be found in the final decision has to be taken but it could be an important step.
To support.
The market that.
Yeah.
Thank you very much.
Thank you Amit.
Our next question. This morning comes from John Kreger at Numis, Jonathan Please limit yourself. Please go ahead.
Good morning, Thank you very much for taking my question and good morning, everyone.
Wanted to ask.
Please about the.
The likely the quantum of the proceeds that you get.
Bonds, it's towers narrow, but the voluntary take over.
<unk> has completed are you in a position to sort of narrow the range a little bit for us. Please.
Sure John .
The number is $6 6 billion.
In the 50 50.
The closure that is being targeted for.
It's a bit higher than it was up.
In November when we talked about $5 8 billion because as a result of the closing of the minority tender offer in Germany, which is giving the JV partners and.
89%.
Ownership level in the near term, we will have higher proceeds.
And you feel comfortable that it will be 50 50 by the time the deal closes.
That's what everyone is is targeting.
And as you know if for any reason anything happening between now and then that wasn't the case, we still have the possibility to sell down our sales, but the consortium is firmly targeting a 50 50 and as I was saying earlier, we are on track to complete by.
Mid 2023.
Thank you.
Thank you John .
Yeah.
As a reminder, if you could piece gets to one Christian to give everyone a chance to ask a question and with that we're going to accrue to Tony at J P. Morgan. Please go ahead.
Thanks, Good morning Margaret.
Hello.
Hi can I ask a question on pricing you mentioned in your introduction that you ate markets now where you've effectively got CPI linked pricing mechanisms implemented.
And I guess I wanted to understand how you think about the sustainability benefits of that.
Obviously, the whole industry is starting to move down that direction, but obviously as yet share prices have benefited so clearly the market's quite skeptical.
What I'd love to understand is a couple of things I mean firstly.
When you think about conviction around these price changes.
How do you marry that versus your comments earlier are more mixed commercial performance in recent quarters. So I guess, how easy or how much confidence you have the price increases can work when maybe the commercial momentum is not quite yet where you want it to be.
And then I think the second piece of it was just on regulation in both Portugal and the U K.
The regulators have commented around the disapprove, but about the scale of price increases the telco industry, putting through can you maybe just help us understand the conversations youre, having with these policies.
And what gives you the competence they wanted to be or do something that could be royalties.
Pricing ambition.
Thank you so.
Three Pos I'd say first of all.
The CPA model itself and we are applying it I think it's really important to introduce this model wherever possible because it's what gives the biggest transparency to the customers. It's very predictable we introduce it into the contracts as we have done in for example, <unk>.
<unk>, where we have started activating the close now in January we have introduced it into the contract in October November and then from then on I would say you keep going.
Two very important aspects for me in the sustainability.
Sustainability of points that you raised on the mechanism. The first is to be very clear and I think this is relevant to your question on regulators as well that these price increases are not going to impact our vulnerable customers.
This is something that we are doing all across Europe , if I take the UK. As an example, you may be more familiar with we have been the first operator in the market to introduce social tariffs on both fixed and mobile.
We have the same approach across all our markets. These social tariffs are not subject to price increases so that the people were really challenged by this effectively protected.
And this is really critical in the conversation with the regulators I would say the regulators are looking for this and are looking for transparency, which I would argue the CPI models.
Our best suited to deliver this as opposed to adopt <unk>.
Price increases.
The second point beyond vulnerable customers that is important for sustainability is making sure whatever possible to maintain alignment on the front book and back book pricing and again, we could discuss separately, where it is possible where it is more difficult, but I think you are saying you are seeing that all.
Across Europe .
The industry is taking action on pricing and it is not surprising given the returns we start from and the cost pressures. We are on there which is why you even have discussions like the one we had with them that before around so.
So actions need to be taken and then to your last point on and I think it's actually <unk>.
Good opportunity for me to really say this very clearly to your last point on volume.
Really think that we need to change the focus.
In the narrative from volume to value.
All we care about or you care about is the net acquired or lost value that we bring in in a quarter. It's not the net adds volume it has to be the full value equation and I think it's really critical you've probably heard me say this before it's really critical at this point in time.
For the industry that that's what we all focus on.
Yeah.
Great. Thanks very much.
Thank you.
Our next question comes from New acts Bernstein.
Please go ahead.
Good morning Mcgovern.
Regarding deals in EMEA contributed to given to the local markets I guess this is really.
<unk> two commercial decisions sage's market junior.
Yes.
What are those technology functions would you consider bringing them closer to the markets even more autonomy to the local studios.
For me, it's all about clarity of accountability.
<unk>.
Let me try and explain how I see the balance that always every group has defined between the regional.
The regional standardization and the local agility.
On commercial performance on certain commercial decision on customer decisions, we always that.
The key decisions sitting with the markets, but with a degree of oversight.
Which over the years, probably sort of builds a little bit far.
Other than I would.
And for me, it's been really important to delegate full autonomy to the markets. They are already and they have accountability. So that there is no ambiguity that decision that they can end to end close to the customers.
The situation is different in scale.
<unk> like technology, where we have a single technology team in in Europe .
Standardizing and driving benefit to scale in our operations has been one of the key levers of our cost performance that we are one of the most efficient operators and it's on the back of that but again in those areas for me. The mission is to make sure there are no ambiguity.
And if.
<unk> activity to be considered.
Scale shared operations. So we want to maintain technology operations sets they need to be managed in a certain way and at certain way it needs to be what I call today, an industrial model.
Which means standardized factories producing for market demand with benchmark to unitary pricing that we can benchmark externally.
And we have done this successfully I would say for many years in areas like procurements in areas like data centers in areas like call centers and shared services.
What I am really keen on is to make sure that any activity that we continue to share is managed according to this industrial model. So that we can get the benefits of our scale whilst at the same time continuing to drive productivity effectively.
Yeah.
Thank you.
The next question. This morning comes from Polo Tang UBS. Please go ahead.
Good morning, Thanks for taking the question. So just a question about etsy slot because they're continuing to build the stake in the company.
The 12% shareholding. So what are they said to you about their intentions press reports have suggested that slot is interested in acquiring verticals. Specifically so would you be open to divesting vertical if the price was right.
Yes.
I'd say on the on the.
What <unk> is saying I can refer you to their public statements.
The recent one in January was reiterating that earlier messages in may as they have added to the stake their re confirmed that in patients to be a long term supporting shareholder.
With no intent of.
Control if you want that's the May statement.
That they have reiterated recently.
You then asked about Vodacom, specifically Vodacom is one of the best assets that we have in the group as you know it's core to our growth performance. Its core also to our returns performance now.
Now clearly the board will always consider.
Any option that can create value for shareholders.
Im just back actually from from Joanna has moved that I need to say it was great to see the first review that since the integration of Egypt, which will complement.
Other markets in which we operate just as a reminder for everyone in Vodacom. We're leader in every single market in which we operate clearly we have growth opportunities through.
Cleantech, there and now with Egypt, we have engineered the integration in order to maximize the synergies financial services, but also digital for the rest of Vodacom sold.
There are clearly very good growth opportunities there in again, one of our strongest assets.
Thanks.
The next question comes from Maurice Patrick from Barclays is on his phone this morning.
See you.
Yes, sorry about that beam internet to breaking it up some.
These barriers so question from me please one on.
On the EU.
So I think the.
The European Union is due to come out shortly with its consultation on big Tech.
Thanks, Sascha towards network capacity, although you've been quite vocal about this in the past, but given that there seems to be momentum building some balls in terms of.
They're lumpy efforts to get the Big Tech Giants to pay for some of the capacity costs that you guys have been.
Having I wanted your thoughts in terms of your conversations.
The likelihood of this going through whether you think below me if it has.
The momentum behind it.
Sure.
We clearly welcome the consultation and also I need to note. The recent statements that you have probably read just in the last couple of weeks first promotional of underlay and then yesterday from Margaret the stagger.
Oh, I think point to a.
A good understanding of the problem now.
We'll have herbs.
Both of them really talking to the impossible position, we are in Europe in terms of returns.
Clear that.
The Big Tech company, which today are driving the top six over 50% of the European traffic.
Introducing new innovations new technologies, such as the meta versus which means that in the coming years. The traffic will continue to grow.
Even faster.
And it's also clear that everyone wants the European consumer to be able to access to these innovations on.
Good quality networks.
I think it's well understood now in.
In Europe that this customer.
Experience is at risk because of the level of returns in the sector. So what I would say is that it's very good that the problem is now well acknowledged and and I think well understood. We have seen the digital markets Act by the way, which has been already issued as of <unk>.
First steps in the right direction in terms of if you want.
Parity of treatment.
Tween the playoffs I don't think we can expect the the telco operators in Europe to bear.
All the hits that will come from this.
The new technologies in this tough traffic growth. So there is a problem and it's good that Europe is now taking steps to consider solutions to that problem.
Great.
Quantifying it at home worker Pizza in the Mr. Shen.
No sorry.
No numbers actually I was thinking that maybe a question for my CFO , but.
[laughter] no CFO today in low numbers.
Thanks Margaret.
The next question comes from James <unk> at <unk>.
<unk> St. James Please go ahead.
Hi, Yes, good morning, Margaret So thank you for the call.
So as I can if I can ask a bit about the EBITDA guidance, please which I see you reiterated.
And the November results, you talked about kind of three drivers for the <unk> recovery that was vertical and as low an anr expenditures in some of your cost out initiatives. So just be great to get an update on where the those three leavers.
And tax for the second half given we're now in February .
Do you see your numbers trending towards the higher end of that EBITDA range or the lower end what are the risks puts and takes around the bottom and top of the range at the moment. Thank you.
Sure in terms of the levers of November they remain the same.
We are progressing on the cost initiatives you heard me say, how much is being operationalized already on the Anr strong.
So big.
Promotions in Germany closed in November and we are now comparing ourselves to a more normal.
Two in the prior year post Covid and Vodacom itself was a bit weak in terms of service revenue growth in the quarter because of the international that have been some.
Access difficulties in the DSD in the quarter for example, but this will reverse.
Going forward. So the three levers remain the same what I would say is probably <unk>.
In terms of evolution since November on order, France, I would call out the fact that the German performance remains disappointing overall.
That's very clear and then from a technical perspective, we had the second devaluation in Egypt that.
That is impacting our EBITDA performance.
At the end of the spectrum, we have add still on a technical basis. You may remember, we had some tax benefits in Spain in the first half. These have continued into the second half so a bit more support from that that we that we originally expected.
Stepping back from all this we are continuing to target the same ranges as before 15% to 15 to end around five one for the cash flow generation.
Is that does that Spanish benefit youre talking on taxes enough to take you to the higher end of the range or is it or some of the commentary on Germany.
Down to the lower end of the range.
I think we need to see we are still at three months to go.
Need to see how the puts and takes adopt James I think today, we're not we're not changing our our guidance range.
Got it thank you.
The next question, we have to smooth is from Jerry Dellis at Jefferies.
Go ahead Gerry.
Hi, Yes. Good morning, Good morning, Yes, Hi, Margaret So thank you for taking my question.
I suppose just coming back to your sort of ambition to restore the European business to growth as opposed to what we've seen for much of the last 15 years is essentially an European mobile is for some of the challenges that take revenue market share and the incumbents and Vodafone that for the most part sort of or on the other side of that.
And I suppose perhaps.
One or two sort of different situations, such as perhaps Deutsche Telekom in Germany, where arguably the.
Benefit on that side is a strong perception customer perception of network quality.
Very good sort of NPS and branding scores.
So as you seek to sort of restore Vodafone Europe to growth you think you can really do it within the current sort of investment perimeter.
I believe that as you sort of really reframe the strategy for the medium and the longer term might not be necessary to invest more in areas such as fiber or in German network quality already just in restoring customer service levels too.
The spot levels necessary for customers to believe in the brand and then how would that fit into the obviously the dividend discussion. Thank you.
Thank you Gerry I see this very much as an opportunity for reallocating resources within our envelopes and really keen NDS heard me talking about this in my introduction today to make sure that we direct our resources.
What really matters to.
To the customers, which is not always I would argue what sometimes we think within the telco industry.
Management teams and four that I've actually spent quite a bit of time with my team here really looking through to the customer insights and what in every market our customers prioritizing in the usual tradeoffs.
Is it a matter of pricing is it network quality is it customer service quality.
And more often than not my perspective is that we are under calling the importance of delivering.
The frictionless seamless simple service to the customers we tend to get very passionate about things that we also generally do well like driving new technologies.
I think there is room to respond better to our customer needs by focusing on the basics of service, which can be digital which can be automated but needs to be simple and effective.
So this is why I've already made a change in the way we run our capital allocation reviews. We have just closed those in the last couple of weeks I mean planning season.
And I want to make sure that the voice of the customer is always sitting at the table effectively when we take those those decisions.
More broadly we have a substantial investment envelope as you know our cost envelop more broadly. Therefore, I think there is room for reallocations in that and in terms of the points you are raising very specifically, which are about the German network and fiber.
Let me say that.
Very pleased to be where we are today with our cable network in Germany.
There were pressures on the COVID-19 because of the different traffic patterns. These pressures have now been fully resolved, which is why we see the benefits in NPS. That's why I was mentioning earlier and on the fiber front.
The way to go about addressing this type of business case for US is definitely the JV, we have set up.
Without these previously so don't expect any significant change clearly we are planning now, but don't expect any material change in terms of overall resource envelope.
Thank you that's very clear thank you.
Thank you.
We have time for one more question this morning from Jakob Bluestone credit.
Jacob please on mute yourself.
Ed.
Great. Thanks for thanks for fitting me in.
Maybe just following on from some curious question about reallocation of resources, you talked a bit about some of the things Youll do more about to drive organic growth can you maybe expand a bit on what are you going to do less of.
It sounds like you are maybe going to spend less on new technologies or what is it you're scaling back to sort of keep the overall investment envelope unchanged.
So really good question Jacob also because IC.
All the changes we are driving as shift.
And it's important to talk about what we shift towards and what this rebalancing effectively means.
And in terms of.
If you want a reallocation from aspect what im really keen to do is simplify the way, we manage our consumer businesses across Europe .
You know that effectively our offers to the customers are today much simpler I was mentioning earlier not yet in Germany, we are getting that.
Simpler offer offers better alignment between back book and front book and simple service that needs to be friction less but we need to ensure that the way we run our consumer businesses and to end all the way from the HQ into the market is I would say fit for purpose.
For the <unk>.
Consumer dynamic fab today in <unk>.
Telcos and this allows us also internally to simplify which is why in the roles reduction we've just executed in the HQ. The most significant impact was commercial.
Areas I think there are opportunities to automate simplify.
And and then you're.
Right size.
Our activities towards the customer needs. So in terms of sources of the extra investment I think that is.
A key shift that we are busy making.
Got it thank you.
Thank you Jacob.
This concludes the Q&A session for this morning, and I would now like to hand back to Margarita for any closing remarks.
Thank you everyone just wanted to say good to see you today.
And they are looking forward to update you on our progress in May.
Yeah.
[music].
Yes.
[music].