Q2 2019 Earnings Call
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Although announced nearly 17.
1700 megawatts of offshore wind awards, including 880 megawatts to Sunrise wind the partnership between Eversource nor stead.
700 megawatts represented the largest offshore wind award to date and in United States.
And major first step in reaching new York's target of 9000 megawatts by 2035.
We are targeting an in service date for our facilities 2024, and we signed a memorandum of understanding with Con Ed in the New York Power Authority to work together on certain transmission facilities relating to.
Winning bid.
We expect to complete negotiations with the state on a contract for the project within a few months.
And as you can see from the slide this is our second successful bids that we've made in New York with sell sell for being the first and most advanced.
This slide provides you with a summary of where we won contracts to date.
Where we are in the federal siting process and when we expect the facilities to enter service in Rhode Island. The PSC issued its written decision in June approving 400 megawatt contract that is part of our Revolution wind project a contract for a separate 200 megawatts of offshore wind from Revolution was previously approved by Connecticut regulators and a contract for another 104 megawatts is now before PURA.
In terms of future RFP is I'll turn to slide six in Connecticut, Governor Lamott signed a bill on June 7th that authorized the state to procure another 2000 megawatts of offshore wind by 2030 with an RFP for 400 megawatt starting within two weeks of the Governor's signature preparation for the RFP is now underway and is expected to be due in late September .
In awards in November .
In Massachusetts.
The state issues the Commonwealth second offshore wind RFP in May.
Requesting bids for at least 400 megawatts of offshore wind, but as they did in the first RFP. They said bidders can also offer up to 800.
Megawatts for as little as 200 megawatts of offshore wind.
We are currently evaluating investment profile and timeline for both the Connecticut, and Massachusetts, RFP in order to develop and refine appropriated strategies.
We continue to view our partnership with doors that is terrific combination.
Of two highly performing organizations that view risks financial return thresholds and operating excellence. Similarly.
Or said is the largest and most successful developer of offshore wind in the world.
We in new England flat, just utility with a strong with strong stakeholder relationships in the deepest knowledge of the region's bulk power delivery system.
And one of the Industrys strongest financial profiles. This combination of attributes continues to make us very competitive in the region offshore wind solicitation.
We continue to expect our offshore wind partnership will provide a significant source of earnings and cash flow growth as the offshore wind turbines and to service beginning in late 2022.
We expect that the awards, we have one will continue to enhance our current five year earnings growth profile as we move into 2024 and beyond.
As we've noted previously they are likely be increasing competition for future offshore wind solicitations in new England, and New York, We do not expect to win.
All of the state solicitations that are ahead, but when we do when we are confident that it will be with a disciplined bid that would allow us to achieve returns that are well above those in our regulated business and commensurate with the profile of offshore wind business model.
That concludes my.
Comments and now I will turn the call back to Jeff and I'm going to turn the call over to Paul and just to remind you how to enter questions Paulette.
Thank you if you have a question. Please press Star then one on your Touchtone phone.
I'll now turn the call back to Jeffrey Kotkin.
Thank you Paul at our first question. This morning is from Mike Weinstein from Credit Suisse. Good morning, Mike.
Hi, good morning, guys.
Hey, Thanks for the update and thanks for the update on on the equity plans going forward.
How much of the offshore wind.
I guess.
At this point.
As everyone has been announced already in the expected to be in that guidance range that you've already put out there or is any of this announcement.
Guidances.
Mike. This is Phil how are you doing the our current guidance the 5% to 7% range goes through the 2023, so as I've said before.
You know when you get to 2023 really only be south for which will be fully in service for for year, and then revolution wins will be coming in during the year. So those projects are baked into the guidance that we have the sunrise wins will come in beyond what our current guidance period is and we'll pick that up when we update our guidance.
On our year end earnings call.
And what kind of returns are you expecting in these investments.
What we've stated is that.
On a unlevered basis.
Of course that has publicly stated that they target and we would support sort of an unlevered return about 8% that translates into a mid teens.
IRA we interfere in the Eversource world.
Got you and also.
Has the rating the rating agency action on the downgrade that have any material effect on your earnings guidance going forward.
No it doesn't.
Just wanted to check on that.
All right, thanks, very much I'll get back in queue.
Thanks, Mike next question is from Sophie Karp from Keybanc Good morning Sophie.
Hi, good morning, guys.
Thanks for taking my question.
Hi, just wanted to ask you philosophically what is your appetite for project similar to NTP, maybe scale and complexity are you now outside of the offshore wind well, obviously, you're participating sort of how do you think about that going forward.
Thank you welcome to the Eversource call.
Hey, your voice.
Yes.
Region has a.
Aggressive targets for carbon reduction and.
Strong appetite for clean energy solutions so.
There's nothing on the drawing board that.
What we see right now other than the offshore wind opportunities that were involved with.
But I am certain that in the future as the region's needs.
Change and as more clean energy requirements come into play that other projects could develop but right now.
There is nothing in our plan and nothing in the drawing board for the region. That's that's not already been.
Non stop there.
Got it. Thank you and then on that Sherwin, obviously, there's been headlines about the issues that Evan grades have been with the permitting on the federal level.
What are your thoughts on that and I, obviously, you've given yourself way more time to deal with that as far as the timeline goes but generally.
If you could just give us some color or thoughts on how you expect the permitting process to shape up.
Sure.
You know not knowing specifically what.
Their situation as you know the details would be.
You know in their court, but but really from a eversource and Eversource horse dead side, we recognize how important.
Siting and permitting is the success of these projects and we're we're focused in our siding efforts to filing complete siting and permitting applications really based on.
Borrow offshore site investigations, we've done a lot.
A lot of upfront work you know our approach is to complete an extensive amount of survey work to that.
Fullest extent possible.
Prior to submitting applications, we think thats, the best way to make it through the permitting process.
You know what our projects we've had a fleet of survey vessels, we've spent millions of dollars.
To assess the characteristics of our lease areas.
That's that those are critical to the filing of a complete application.
We were the first.
In the U.S. to the to develop and deploy these measurement boutiques that are going to lease area to study wind speed in wave heights. So we put a lot of effort into.
Thoroughly investigating the sites before moving forward.
We also understand that Theres constituencies out there that you have to address the fisheries industry.
We have a full time liaison.
We've modified our wind farm layouts to avoid impacts and our design. We were the first developer to announce changes in proposed turban layouts.
Based upon input from local fishermen so.
You know that plus the fact that.
We were the first developer to partner with a group called the responsible offshore development Alliance and really it provides.
Our unique partnership for how fisherman can provide direct input to us so really that combined with the combined strength I'd say of the Eversource endorse that teams in this area I think really is a differentiator.
Great. This is a great comments and thank you so much I'm going to jump back into queue.
Thanks, So can you just help me.
Next question is from Steve Fleishman from Wolfe Good morning, Steve.
Hi, good morning.
So just a couple of things first.
So could you just clarify the I think in the past the Revolution wind.
Even though it starts in 23, it was really not going up.
Benefit till after the forecast period is that still the case.
That's correct Steve.
Okay.
And then is there any information you can give on a.
Pricing for Sunrise, when dinner or any idea what that will be made public.
As I mentioned in my comments, where we're probably a few months away from finalizing.
Contract.
With NYSERDA the expectation really is within 30 or 60 days after that so after that period at some point the physics isn't expected.
Disclosure of pricing.
Okay.
And then.
Just a it sounds like.
Maybe you could give a little more color on the comments on.
Financing future growth and the offshore wind so.
It sounds like.
High level thought process is that.
As the first projects come on they generate.
Cash flow that helps to basically fund.
On the new growth.
That that's kind of a high level, how you're thinking about.
Yes so.
Okay, and then in the early years of those.
There's a.
A significant amount of cash flow that's generated from projects once they go into service.
And that will be used to fund and finance some of the construction cost as we go forward and okay really.
So I think that that helps us and that really.
Yeah, I get to the conclusion that other than doing some minor.
Aftermarket issuances, we have no future needs for block equity.
Okay. So that so for example that might be as you are going to book.
You're gonna get the ITC from those projects.
Oh, and then you can kind of reinvest that into the growth projects.
Right. This cash generated from from that Okay. So correct.
Correct, Okay really that that should.
No as I've said that that should really if you take that and.
The success, we've had on the future project that really should should allow us to and we expect that our growth will accelerate beyond the midpoint of our five to seven as we as we move forward here, so really right.
Okay and then just one other question on on the offshore wind. So just in terms of the actual booking of the accounting.
For the tax credit or how are you planning you know a rough sense of how you're planning to book.
The accounting of the Itcs.
Yeah, the booking of it would be over the life of the asset over the life of the contract so over a.
Time period, So you know or you could look at so that's one option yeah. There is to do it over a 10 year period. So we're sort of looking up at both of those at this stage.
Okay, but it's going to be you're not going to you're definitely going to spread it out.
Yes, correct.
Okay.
Alright, great. Thank you.
Thanks, Steve. Thanks, Dave next question is from Praful Mehta from Citi. Good morning Praful.
Good morning, guys.
So maybe just picking up on the tax side and just to clarify on the ITC is be yeah assumption that the sharing of the ITC and the depreciation will then be based on the ownership percentage or is there a disproportionate to sharing more tax equity component related to any of the tax credits.
So when you look at the the partnership is a 50 50 and I guess, the best way to look at it as you get as many.
Ins and outs and gives and takes but the economic value is shared 50 50 between the two partners.
Right. So the economic value. We don't go so the combination I'm assuming of cash flows and tax credits, but you could split the tax credits different from the 50 50 is that is that a fair way to understand it any category could be you know within the category split differently than 50 50, but the.
You know if one categories 40, then another area, where we have to be 60 that offsets the overall, but all the categories that that relate to the economic value I shared 50, 50, but if not each one of them has to be 50 50.
Got you and just remind us your tax profile post the 2022 time frame you honor for tax cash tax paying at that time, that's correct.
Got you understood. That's helpful. And then in terms of the equity offering Youve talked about 12 million shares being done or sometime theater is there any color you can provide on how to think about matching off the timing.
Oh the forward with it with when you would want to do it depending on when the Capex kind of hits just to understand that timing.
Sure. The the forward was put off for a year. So the expectation is that by the end of May of next year.
Those 12 million shares would be issued.
I got you. So you would delay that as much as you can effectively is a good way to think about that.
Yeah, I think that the best way to think about it is we would assess what our needs are.
And what the opportunities are and be.
Again be opportunistic about when we do it but with where we're not going to issue before we need it that's correct.
Understood and then finally, just on the growth profile that you talked about the five to seven there really wasn't any northern pass in your.
Forecast through 2023 is that right from a growth perspective.
Right.
But that the capital investment.
What was removed from our plan that is correct.
Right. There was there any underlying base their earnings are any of you do you see or anything else in.
A related northern pass that goes into Fourq in the plan.
Yes, there was that I think we've talked about that that there.
In addition to you know, earning a return on the on the investment you know under the.
The transmission service arrangement that we have that there was you know kind of three to four cents of a few DC.
Annually in that.
In our forecast so.
We know that that will not occur but were very comfortable in our reaffirming our 5% to 7% target.
And I will say that.
For the remainder of this year.
You know because of the impairment that they'll probably be about two cents.
Okay. If you do see that.
You know have been booked had the project.
Ben active that will we will not be rate, reflecting but that we will as we always do you know look for ways and I'm confident that we'll find opportunities to offset that.
You know for the rest of this year and going forward.
Gotcha Super helpful and just to confirm the five to seven so you're still comfortable within the midpoint of that range, even threw out through 2023.
Yes that is correct.
Well I really appreciate it guys. Thank you.
Thank you Paul and keep novel next question is from Paul Patterson from Glenrock Good morning, Paul.
Good morning.
I wanted to.
Touch base with you on ultra winded.
This decline in place cap.
Legislation I guess, the the amendment to sort of eliminate it.
And just sort of how you view that in the in the context of offshore wind economics I mean.
It's kind of a dramatic move I guess on the part of the state legislature and the governor.
How should we think about that in the context of.
I guess, what Massachusetts is experiencing.
Thanks for the question, Paul I hope everything going well so late late last night.
I think you're probably referring to or maybe caught up with yet that.
The cap in Massachusetts, there was legislation that.
I'm not sure if again the governor actually signed it early this more thing or will be signing it but effectively that does lift the cap for one year. So for the next for this upcoming solicitation.
There are the cap in Massachusetts is removed and I think that's just.
In a recognition that there's many things that they hadn't thought of at the time when the cap was was instituted but they still are focused on you know class going forward. So the legislation was you know passed by both the Senate and the house that that remove the cap for this current solicitation. So there there is no Cal.
Oh, it's Kevin solicitation and is that because I guess, they feel that the economics are such that we might see higher prices and in this upcoming solicitation.
As opposed to.
What was the cheap previously is that that's safe to say.
Yeah, I think there is recognition if you've kind of follow the the different proposals that were out there Paul.
You know folks really.
Honed in on this but the tax credits changing you know they when they pass the legislation. They you know they were at 24 or 30% and you know they've been reducing each year. So I think that there is a recognition that all other things being equal if you if you lose.
Or have lower tax credits that that's going to impact the pricing.
So rather than sort of engineering every particular.
You know aspect of the bad they just decided it's easier to just remove the cap and for a year and then go forward.
Okay, and then on the Connecticut grid Mod.
Oh, I'm sorry, but this is what's the timing that you're expecting on that.
Well, the Oh, I'll, just give a little bit of history there that.
No. This was a docket that.
You know has been completed and now all the testimony has been done but you know in the interim there's been some there was changes there the Katy dykes, who is the chair of pure.
Has moved or you know sort of been moved into a higher position and there's no new a new chair at Connecticut. Pure then there was legislation, Connecticut to increase the size of pure by adding two more.
Commissioners. So there's been you know a little bit of evolution in the Connecticut PURA. So right now we believe that that is certainly one of the issues that is on the front burner of the of the.
Agenda at Piura, but it's hard to say precisely when we expected I mean, we do expect it to come out this year.
And we have been working on proposals that we would make in response to it so that we're ready to go when when something does come out but just to refresh your memory. This this is not a prescriptive per se order that we're looking at that's coming out the expectation that it will be more directional and then ask each company to submit specific proposals to address it. So in the anticipation of that we are working currently on our specific proposals again, so that we're ready when the when the order comes out.
It's been kind of dormant there, though I mean for for like a since January something it seems to me and I'm. Just wondering if you expect an order, though just to sort of show up or is there any other process.
That that'll happen between between or will there be something else that's going to be in other words.
Should we just think it's are we just waiting for the order now is that pretty much where we're at.
Oh, there's no indication that there is any other process that would be done. So at this stage were just awaiting an order okay and then disappoint me on the battery stuff how do you see the economics of your your your battery investments out. These at the peak or does that mean, we're hearing different things from different players in the sector around the country.
You know cheaper than a peaker that kind of thing.
When it's combined with renewables or what have you I'm just sort of wondering since you you highlighted the the deployments that you're making your service territory.
How do you see that how do you see the economics of that.
Going forward.
Well as I described in our applications, there's many different applications for the for the storage and you know its some of it is purely based on cost displacement of a peak a resource some of it has to do with reliability providing.
Battery storage as are our application in Provincetown on the Cape really provides you know an opportunity to improve reliability. There and you know then we don't have to construct a line.
Through through you know the national Seashore type of thing. So so there's certainly a a myriad of benefits price being one of them emissions being one of them a reliability being one of them and I think battery storage as a package can address a lot of those things and then if you can combine it with.
Intermittent resources. It even has a has a better application. So certainly there's opportunity cost to come down I believe in that in that area as as there's improvements made in storage technology, but I think the early applications are going to kind of prove some of these things out and why we feel very offered.
Have a great opportunity here to really demonstrate the real value that it brings on many fronts.
Okay, great. Thanks, so much guys.
All right. Thanks, Paul next question is from Travis Miller from Morningstar, Good morning Travis.
Good morning, Thank you.
On the Green Bond just wonder if you could talk about your decision to go with that type of bond versus are obviously traditional.
All right and then how much capacity do you have to continue issuing.
Those types of bonds given the pricing you got.
Yes.
Thanks for the question Travis I'd say that if you look at the bottom line. We believe that we are pricing was tighter green bond than it would have been in a.
And then I will turn them issuing a you know a non green bond.
Oh.
[noise] issuance for for where we need it. So you know pricing. There's certainly a lot of interest are you seeing profile really contributes to.
Attracting investors.
As you know with the green bonds, there needs to be a green reason.
To use it and certainly as we move forward with all of our clean energy applications, there could be more opportunities to issue green bonds going forward. So the.
I guess the capacity for them is dependent upon you know what you're doing that screen and we do a lot of things that aren't green. So I would expect that we'd have.
Much more capacity to issue Green machines as we as we move forward I can't give you a specific dollar amount or application right now but.
You know the the basis for the Green bond that we did issue was the you know the $500 million a year that we spend on efficiency in some of our other.
I mean initiative so.
Those become more and more part of our business, there's more and more opportunity to issue those green bar.
Okay and do those have to sit not the ones you issue I know how to sort of the parent but is there opportunity or capacity to.
Issue Green bonds down of the utilities for some of the stuff the batteries or anything else that you're doing.
This one is that in fact this one was at at and Star Electric So.
Oh, absolutely can go at utilities.
Okay, I guess I'll ask the reverse none [laughter] could you do it can turn into a paraffin cultural and you can go both ways yes.
Okay. Okay, and then just real quick clarification on the equity how much would you have needed if you weren't doing the offshore wind those are in need there either on the parent <unk> refinancing side are done at the utilities.
Oh, what we said and what we would continue to say as we had as you know we have a robust 13 billion dollar capital program.
You know for.
Forecast time period.
And that combined with the activities we were performing in the wind area really drove the need for the.
For the equity issuance no I I I hesitate to allocate X amount to one category versus the other but certainly when you look at.
We do have a robust capital plan that was a big driver of that need.
Okay, Great I appreciate the thoughts.
Thanks, Rob. Thank you Travis next question is from Julien Dumoulin Smith of Bank of America, Good morning Julien.
Hey, good morning, everyone. How are you.
Good how are you.
Good excellent. Thank you so just coming back to some of the prior question on tax, but I was just curious do you have any more specificity you can talk to about both the specific itcs your tax fear that you're gonna agenda to try to qualify for each of the different offshore projects and also just to come back to what is the amortization. Your I know this was kind of indirectly asked earlier, but I just want to be very specific about it and I in the end I recognize that you may not have yet made up your mind with respect to these decisions either.
Thanks for the questions Julie I I'd say that.
The specificity, we've given on the on tax years or whatever to say that you know they were appropriate considering the timing of when we bid and what the construction schedule would be but we have not.
Nor would we plan to identify you know a specific year a specific item that that type of thing, but I I will say that we've accounted for being conservative or you know, having a schedule changes et cetera in our in our tax planning.
Ah profile so.
No more specific than that at this stage in terms of the.
The number of years, you know I'd say I I pointed out there's different ways of showing that.
Obviously, you know you get cash in early and then you could you know reflect that so we would do it in the most attractive way, but still evaluating you know we're still evaluating how what best fits into our you know our tax profile going forward, it's hard to try to say what that looks like right now, but we're going to make the best use of that in the years ahead.
Well or let me frame it this way perhaps.
By the time that you're ready to roll forward your outlook to 24 or will you be reflecting a decision with respect to tax recognition in that guidance right. I mean, this would seemingly be a pretty material piece of.
Of of how you establish a future guidance I would think yeah sure I'd say they'd have to be some baseline assumption that that we would make there that would be appropriate to discuss.
Got it and then just to come back to problem question earlier about the value sharing I had thought that ore said it confirmed that they indeed, we're going to provide you with their tax credits as a quality tax equity.
Counterparty, but can you elaborate that I mean to the extent possible about how they any in you are talking about monetizing their tax.
Component and also if possible how you would think about recognizing that again in your income statement to the extent to which you are.
Taking on their portion of tax credit.
So as I said you know there are many categories to divvy up the 50 50.
Economic value of the partnership and certainly is a eversource has more of a.
An ability to to utilize more efficiently that the tax.
Benefits of the partnership then you know we'd be foolish not to you know sort of make that determination. So I'd say at this stage Julian that you know the specific how that's going to work and what the numbers are still in flux, you know still something that.
You know we look at all the time as part of our partnership what makes the most sense for the partnership returns going forward and how we can best utilize.
The financial profile in the operated <unk> operational knowledge in fact of each party to be the most successful financially and operationally here. So.
So you know.
I think it's just common sense that if somebody can better do something let them you know rely on them whether it be constructing something if there's a better tax appetite. If you can finance cheaper. So all of these different items, we're going to pick the best way to do it and if that means that that category isn't exactly 50, 50, so be it but the overall division is going to be 50 50.
So somebody's sorry quick.
Yeah. Good for him of these decisions evolve as you go go through time.
Got a quick clarification, if I can summarize here.
How do you think about the equity net injection needed for these offshore projects again, the thought process being.
Trying to tie back the balance sheet the equity raise here against your your outlook over the five year period, how do how should we think about these projects and I understand that there are cash flow profile shifted pretty dramatically depending on specific year, but upfront, 30% equity how would you frame it.
I'd say the way that you should look at in the way that we've guided is to say it but you should assume that it's sort of an eversource profile cap structure and that would be 64.
Okay, great. Thank you very much for your patience.
All right you're welcome.
Thanks, Julien next question is from Andrew Weisel from Scotia, Howard Weil Andrew.
Hi, Thank you good morning, everyone.
I had a question on your appetite for more offshore wind so you've committed to 50% of over 1700 megawatts, how big would you be willing to let that business go get for you.
Is it a question of the earnings mix or the balance sheet or the physical lease capacity space and what would happen with the partnership with the worst Ed if you when they want it to move at different paces.
Thanks, Andrew and I guess this is a question of a bigger it is bigger better I guess is the nature of your question but.
You know our lease sites can handle no 1000 megawatts of capacity and that's where we're at.
In partnership with with Eversource and of course that in and really I'd say, there's not a race to get to the full capacity. There's there's many.
Thousands are on the drawing board of offshore wind RFP ease and needs that are expressed in new England and New York.
And those come in you know over many many many years and.
Our lease areas in my view are the are the very best I mean, you look at.
The proximity of where they are to shore you look at all the wind speed and other dems characteristics of those sites and I would.
I'd, rather have my size than than anything else out there. So there'll be there'll be plenty of opportunities to grow. This as we move forward, but we're going to do it in a way that is disciplined and we're going to look at each RFP a in terms of what the schedule is what what we already have on our plate you know what we can do going forward and what the financial profile is of that RFP. So you know so it has to be not necessarily bigger, but it has to fit the profile and be a financial added financially additive to what we're doing going forward.
Okay. So notwithstanding costs I know you can't get into the details forbidding reasons, but it sounds like you will be pursuing all of these reasonably aggressively right.
I didn't I didn't say that I said, we would look at each one and make a determination as to you know what the schedule.
That the RFP is looking for what we already have on our plate. What we think the financial you know the bid price would be what that would.
I mean in terms of returns and then we would make a determination.
You know based on that in terms of what our bid strategy would be for each specific RFP.
Okay got it and just to confirm am I right that for all of these offshore wind projects. The interest will be capitalized and therefore, it will impact cash flows during construction, but not earnings is that the right way to think of it.
That is yes, you are correct.
Okay, Great and one last one if I may how do you think about affordability in new England, given the higher cost of these projects I understand that your utilities are in rate freezes, but over the next several years is affordability a concern, especially given the high starting prices for rates in the region.
[noise] affordability for our customers is already are always a primary concern as well as.
As well as their reliability and the quality of service that we provide so certainly affordability.
Energy supply cost affordability of our own distribution rates affordability is top of list for customers and top of our list. So we continue to evaluate that and you look at that in relation to what the alternative is okay. So so if you're in a region that as we are in the three states to serve and in a region that has very aggressive carbon reduction targets you need to see how is it that you're going to meet those targets and provide the level of capacity in service to customers that they deserve so.
You know.
What might seem like high cost to some is relative depending on the region you're in and the alternatives that that you have but certainly affordability is important to us.
Thank you very much for the details.
All right. Thank you Andrew next question is from Mike Weinstein at Credit Suisse Mike.
Hi, guys.
One quick follow up I just wanted to know if you heard anything from FERC on.
Transmission or are we using that decision.
On that Oh, I'm, sorry, if I missed this answer earlier.
Mike that Didnt Miss any answer on that that the answer is that we have not heard anything from forever.
Well the status of our four open or we complain.
Okay, Yeah, just wondering because they've been actually issuing a few decisions lately. So just wondering if there's been any movement.
Yeah, nothing that that we're aware of other we've seen.
Okay. Thanks.
All right. Thanks, Mike we have nobody else in the queue. So we want to thank you all for joining US. This morning. If you have any follow ups, so feel free to give us a call or send us an email. Thanks, a lot and have a good day.
Thank you ladies and gentlemen. This concludes today's conference. Thank you for participating you may now disconnect.
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