Braemar (LSE:BMS) — Preliminary Results for the year ended 28 February 2022

0:01 Good morning, and welcome to the BRAEMAR Shipping Services PLC preliminary results for the year ended 02/28/2022 investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted any time via the q and a tab situated in the right hand corner of your screen. Simply click q and a, scroll to the bottom, type your question, press send. The company may not be in a position to answer every question received during the meeting itself. However, the company review all questions submitted today and publish responses where appropriate to do so. Before we begin, we'd like to submit the following poll. I'd now like to hand you over

0:31 to James Gundy, CEO, Nick Stone, CFO, and Trish Simmons, COO. Good morning. Good morning, ladies and gentlemen. My name is James Gundy, CEO of BRAEMAR PLC. My left is Chris Simmons, COO, and on my right is Nick Stern, CEO CFO. Morning. Morning. Now Nick's gonna run through the slides, but we're gonna, firstly, obviously, go talk through those slides with you. We'll obviously, as said, there'll be a q and a at the end, and and we'll go from there. So first of all, I wanna say, like, thank you and, obviously, for the awaited accounts for for 2122. And double sets, we mentioned the RNS. I think it's important to say it's just excellent for that the business has been going according to plan and the strategy I had coming into the business back in January 21.

1:23 I can say it's all working as far as we want it to do. So ex executive's trading performance, revenue's up, profit is up, transaction volume's up, and debt, of course, is down. This outperformance was due to us in outstanding personnel and our competitive advantages, optimized resilient business model, enhanced brand enabling growth. Motivated team, uniting, and driving big changes. That we've all done for sure. Slide two, Nick. Strategic steps. Successful delivery of noncore business, dispose shipbroking and dispose shipbroking corporate fight emerged. And this was obviously a key factor for me, as I said to you very beginning in in January 21 when coming in. I was very keen to remove the non ship broken business from folks exactly what we knew and understood.

2:11 Rebuilt the foundations, redefined strategy, strengthened balance sheet, on track to double profits by 2024, our focus is generating more growth and enhancing revenue and profitability.

2:27 Great results. Right. So I'll cover the next few slides and talk a little bit about the results, and then we'll go back to talking about the broking market or the ship broking market. So our trading results, as James has said, revenue is up, profits up, margins up, all the indicators are heading in the right direction. And it's important to notice in this and also in our expectations for the coming year that although the markets are positive for us at the moment, we've also had transaction growth. And although market share is very, very difficult to measure in this industry, the fact that we are growing transactions in last year when actually in certain areas, volumes were down, is a good indicator that we are doing the right things opposite that market share.

3:24 We've also had investments in people and technology, new offices over the last couple of years, which have which we are now seeing coming through in the positive returns and the increases in the main KPIs in last year and in the year that we're in. So then turning to the actual financial summary. Underlying profits were up by 31%. The statutory reported profits were up by over 200%. I will talk a little more on the next slide as to what the difference is between those two measures. But the underlying operating profit, which is our key measure looking forward, was up by 31%.

4:10 The forward order book, and that is business that we've contracted but not yet invoiced, was up by 15% and has grown by another 14% since the year end. Operating cash flow was up by 61%. We have an increased dividend, which is covered 3x, and bank debt has been reduced by 69%. So lots of very positive indicators within these financial statements. The stronger balance sheet we have enables this process to continue, whether it be via M and A or continued investment in people and technology.

4:58 On the next slide then, we'll look at the actual headline numbers. Revenue was up 21%. Important to recognize that the comparatives here have been restated to exclude Corie Brothers and Wavespec that are included as discontinued operations in these accounts, having sold those businesses during the last year. Underlying operating profit was up by 31%. We've seen an increase in operating margin from around 9% to over 10% in this period. Now I mentioned earlier the reported profit. This is the statutory profit, which includes the result of the discontinued operations.

5:47 There is some 7,200,000 in the numbers, if you look at the RNS, for profit from those discontinued operations. It's a mixture of trading profit from Cory Brothers and the disposal of Cory Brothers and our stake in an old business that was called a Qualys BRAEMAR that was sold towards the beginning of last year. So 7,200,000 in total, around half of that was the disposal of a Qualys BRAEMAR. It was something over 5,000,000 of trading profit and disposal profits from Cory Brothers, and then there was a loss on the disposal of Wavespec. Wavespec, if you had looked at the numbers previously, was a loss making business that we disposed of in March 2021.

6:41 The next measure then on here is the operating cash flow, and that's cash generated from the continuing operations. So very strong growth in that during the year as well. As a result of strong operating cash flow and of the disposals in the year, our net bank debt was down to GBP 2,800,000 following the receipt of the first installment of the CORI disposal. The transaction was completed on the January 28, and 6,500,000 of cash was sitting in solicitors' bank accounts on the twenty eighth, and therefore, we weren't able to include it in our balance sheet.

7:26 But that money was received on the March 2, and the net bank debt we are showing here of 2,800,000 was after the receipt of that CORI monies. The dividend for the year was 9 p, up from 5 p in the previous year. It was an increased dividend based on previous expectations that will be recommended to our reconvened AGM in October. Then finally, on here, the forward order book, 50,000,000. Most of our revenue is denominated in dollars, we'll touch on the impact of that later in presentation, up 15% from the prior year. I think we've stated in our release that it's grown by another 14% since year end. So the positive story in terms of that KPI continues.

8:25 I will then hand over to Tris, who's gonna talk about a little bit about the the the revenue split by desk within the business. Alright. Thanks, Nick. I think on these pie charts, really, the, the the big demonstration here is where we were in 2016 versus where we are, end of last financial year. But you can see, you know, in 2016, we had a business that's very much dominated by deep sea tankers, versus 2022, a much more diversified pie chart, which, you know, has been through strategic investment by us in in other products and and growing headcount on desks. So I think it's fair to say coming out of last financial year that, you know, the the only, the only sector within that pie chart that we saw a fall in revenue was on deep sea tankers, which, post COVID, deep sea tanker rates were extremely low, some of the lowest we've seen in in over a decade.

9:26 However, we still maintained a a good a good revenue stream through that product and actually increased our transaction volume by 25% during the year, most notably due to new new hires that we had made in the previous year in establishing a Geneva office that specialized in clean tanker broking. If we move on to the next largest sector, dry cargo, dry cargo was a year of extreme volatility. We saw Capes trade up to a higher than excess of $85,000 and then back down to to a rate that was low as $5,000. I mean, certainly, the, the transactional volume that we did increased through the year.

10:14 We did benefit from the higher prevailing rates at the beginning of the year, but the revenue maintained, fairly constant throughout the year despite that big amount of volatility within those rates. Moving on to our other sectors. Sale and purchase, obviously, another huge, huge area of business for us. Some some real sort of constraints within that business on the new build side through, lack of availability in yards. But the the flip side of that has been, an extremely busy secondhand sale market, which which, again, enabled us to

10:54 to post near record revenues within that sector. And and certainly, that trend has continued through into this year, which I can give you give you a breakdown on on where we are so far on on all of these sectors for the first five months of this year. Offshores and renewables, again, oil and gas industry and renewables, very, very busy coming out post COVID. We saw, you know, double digit returns year on year, for that sector us as a business. Securities, we've invested very heavily in, in a dry cafe business and associated technology, which during the year, we saw we saw revenues increase by as much as 400% year on year. So a a very worthwhile investment.

11:40 Corporate finance, all all credit to to to what we've mentioned earlier in the in the the integration of corporate finance with the shipbroking business model. A lot of transactions were completed in in in in unison with with our S and P desk, basically capitalizing on the on the S and P's customer base and and the corporate finances skill in in restructuring within that business.

12:12 Finally, moving on to specialized tankers. I mean, specialized tankers is a very broad sector for us, but I think the most notable gains in revenue for that year and certainly coming to this year were through LPG and LNG. LNG, we have various new vessels that were delivered last year, plus some long term charters that we were doing for a couple of customers that we regularly work with that have continued through over the next five years. LPG, we we have some good relationships that enable us to to do long term charters on some of the larger vessels, which has continued through this year as well. And without going into too too much detail about how it performed so far this year, I think for for most of the segments within there, you know, the biggest change has been in deep sea tankers where we've seen rates go from a decade low to to a three to 400% increase on some of the vessel sizes, which, I think we could possibly see a swing between the deep sea tankers and dry cargo percentages within that pie chart, but still dry cargo even with what I would say are more normalized rates this year, year on year, in the first five months, we're still looking at revenues being up in excess of 50% versus last financial year.

13:40 Yes. So next page then is our headline KPIs that we publish regularly. I think it's probably important to recognize that the most significant KPI we have, and James mentioned that mentioned earlier, is to double our operating profit over a period of five year four years rather. And that started with the operating profit measure of 8,900,000 in 2021, which included the Corie Brothers profit and therefore, a target of $18,000,000 within those four years. So that's the overarching KPI. Within this chart, you can see some of the constituent parts. We track revenue in dollar terms.

14:28 Clearly, the foreign exchange rate has a material impact on how that's measured in terms of sterling, but it's important that we measure it in dollars so that the core message outside the exchange rate is clear. We also record and review the revenue per head. It's very important to recognize and to monitor how the individual brokers and teams are doing. And that then flows into the operating profit margin, which again, we've seen an uptick in the current year and expect to see continuing in the next two years. I mentioned the forward order book previously. And although you can see in most of these measures, a little bit of a downtick post COVID as volumes dropped off, the last year and certainly in the current year, all of these indicators are now going back in the right direction.

15:29 And then the final chart is on our total leverage. This was very important a couple of years ago when we weren't paying a dividend, and we'd indicated that we would look to see the total leverage to EBITDA ratio below 1.5x on a consistent basis before we return to a dividend. And you can see, therefore, the direction of travel in that. I think that measure last year, I think, was well below 1x. And hence, the decision to restart paying dividends last year and continue with some dividend growth in the current year. I will now hand back to James to talk about shipping market outlook.

16:19 Yeah. I think this slide here is important for you to understand because shipping is and I've been doing it for some thirty five years in the ship working world, and I haven't seen shipping this exciting as a forward projection for for whatever. So so there's so many fundamentals here, whether that be to do with ESG, whether that's due to the fact that we've probably seen a 30% shrinkage of of yard capacity since 2008 in the last crash. And the fact is that the fleet is aging, thus potentially looking is is is a stronger position. Also, it's worth bearing in mind in 2008, it was a lot easier to contract a new building because probably you were able to borrow 90% of the of the value I. E. Loan to value as opposed to now more like 60%.

17:14 So there's a lot more equity being put into the into the the ships. So what does that suggest? That suggests that the freight rates will maintain strong. It's obviously good for a ship broker with stronger rates. And and I feel I feel so for that, and I think that presently you can get a new building probably now. It's 2025 going into 2026. And there's a there's a large amount of it's being potentially hitting a certain age. That's gonna obviously impact on that recycling business. So we will see a lot of that's what's going to the beach, as we say.

17:53 So at the moment, as far as that's concerned, I think you can see on the next pay I think the next gives you a bit of that. So here is here is just showing you what's been happening. I think you could say, now everyone's hearing about the container market out there for the last couple of years. Yes. I mean, since COVID struck, the container market went through the roof. That already was a fleet that was very aging. So it was a rush to the yards to build more ships against long term contracts. That's also a fleet that is under pressure for

18:30 for emission free because the likes of Amazon, Nike, all these companies are trying to to move their goods carbon free. So we've seen a lot of dual fuel, which is being built. That's taken away even further capacity, so it's not allowing dry cargo and tankers to build. Thus, the curve starts going the other way as far as ships. If you take the tanker market in 2008, we were seeing 85,000,000 barrels a day at OPEC that fell to low 70s after the crash. It went to a new high of about 105,000,000 barrels per day pre COVID, go back to mid 80s, Now it's back above the one zero five. So you can see where the where the sector's going and what on what's happening. So at the moment and and in dry cargo, that's also an aging fleet because that was overbuilt in 2008.

19:20 Now we've seen we're now seeing ships go to the to to be recycled after

19:27 with the the rates coming off again. And even in the even the offshore market, and that's amazing. That was definitely hit massively as the oil price went negative. And we saw a lot of vessels being also taken out of the fleet, and that hasn't been replenished. So if anything, this this builds for a future of stronger rates, obviously, stronger rates for for a shipbroken business. It's important, and I think that I'll say this towards the end statement as well, You know, because shipping is cyclical, it's hard necessary even sometimes for ourselves to work out which is the right market to but with the shipbroking business like ourselves that has covers every sector, then you're pretty well hedged out by investing into a into a shipbroking business. I think we can go to the next slide. I think we I think this is basically showing you the order. I mean, LNG is obviously is a sector. I see there's been some questions on LNG.

20:22 I mean, LNG has been definitely been a sector that we've been very much involved in. We've built our desks, you know, within London, Geneva, and Singapore. We've been very much involved in new building contracts. Those prices are pushing to very high numbers of $240,000,000 per vessels. These are big transactions for us to do. You know, as as these commodity prices I see, you know, you're mentioning there, hit new highs. Obviously, other commodities come into into to replace those commodities. For example, it could be coal. It could be oil. All these were involved in. And in fact, our coal desk had record record years as well. So that's roughly where it isn't these these are

21:02 worth reading that, and there's even further information on our preliminary results as well on this. What's what are getting here? Now this is import this is an important factor, I think, because everyone asks a question, and everyone knows being in the public arena, it's all about the growth and making sure we make strategic moves in the right direction. So I'll let I'll let Tristan explain a bit more about our growth strategy and where we need to build and what desks and what and global offices. Yeah. Thanks, James. I I think, first of all, I mean, the the that table is fairly self explanatory. If I try and say what we've done so far in the in the last two years, I think identifying products that we don't have good coverage on, and also regions where perhaps we're not covering those customers in the best way we possibly could is it it is key to to building our business,

21:54 and we have done that. If if we look at, obviously, London, you know, we're we're we're fairly well covered on on most products. I think we do have scope for to to do an increased spread of derivatives, however, you know, potentially away from shipbroking, and and there are some synergies with other products that that we can certainly capitalize on, and we're looking at those. In Europe, I think the the most notable changes that we have had in the last few years is that we opened in the office in Geneva. We had a bit of a hole in our tanker business on clean tankers. We successfully hired a team of half a dozen clean brokers that certainly contributed a lot to that transactional increase in volume for last year of 25%.

22:43 We've also put we have two two very senior dry cargo brokers sitting in our office in Geneva. Aside from Geneva, we opened an office in Athens. Obviously, Greece is a is a very owner centric business for us. We felt the need to have a presence there.

23:03 But since, you know, opening it as as a as a satellite office for the S and P desk, we've diversified into other products. We have a container broker, and we have two Panamax brokers now in in in Athens, all all all successfully transacting with people that we wouldn't transact it with before.

23:22 The Middle East, I think there's a real shift in in trade pattern taking place at the moment. I mean, where traditionally we had a very small office in Dubai, I think us and a lot of competitors are starting to grow that presence in Dubai. I think that the the ability to transact with customers based in The Middle East is increasing.

23:45 And I think, you know, rather than traditionally, we would have had people sitting in Singapore, you know, attempting to do a little bit of business. I think that we we see the importance of having people locally to actually engage those customers locally, and that's something that we have done. We've we've we've moved into a larger space to buy, and we have more products, brokers there covering different products. The big big obviously, APAC, I don't know if if you many of you are familiar with the fact that we have a very successful dry cargo business in Australia, probably one of the largest transactors on certain vessel sizes there. They continue to grow their business. Likewise, Singapore, we're very fortunate that we have a a well respected senior MD running our office for us that that certainly has been able to get us entry into new products and hire new brokers.

24:41 The most notable, I suppose, opportunity here on this board across all of these products is The Americas. Sort of steps that we've taken to change that are in process. We have various potential partners that we want to work with. We recently offered opened another office in Houston, which we have, we have four people working on there, which was a new business for us. We have a US flag business in The States. I think so there there there are notable holes in our business that we are looking to to fill. As I said, you know, we we we have various partners that we'd like to work with on that. Good.

25:28 Right. I guess we can come to concluding concluding of our presentation. It's almost upwards. We're obviously on track to down double down line operating profit to 18 within four years as promised in October 21. We feel confident about that. Growth in fixtures, volumes, that's uncorrelated with market rise and generating alpha growth. This is also proven. Enhancing BRAEMAR's brand in office and people

25:58 launching as sustainable offering, strong balance sheet. That was obviously very, very important to me to get that debt down. And go for growth, m and a, good pipeline opportunities available. So yeah. Nick, that. So so so I'll do this I'll do this. Yeah. Let's do that, James. So mentioned previously, the forward order book is up a further 14% from year end. We're seeing volume growth. It's an important factor within these results and our forecast for the current year. And we've seen the product diversification that Tris has talked about in some detail, and all of that reduces the exposure to the natural cyclicality within the different elements of the shipping market

26:53 and improves our economies of scale. That increased scale and the focused strategy gives us an ideal position to seize the opportunities that

27:10 clear to us. And again, Tris has talked a little bit about that. We've we gave a separate trading update yesterday morning with the results, which made it very clear that our results for the year to February 2023 are going to be much stronger than last year and stronger than previous market expectations. We've given a clear indication of an operating profit of at least £20,000,000 Within that statement, we also disclosed, though, that of that 20,000,000, 5,000,000 is attributable to the strength of The U. S. Dollar at the moment. And if you look at a core underlying operating profit of 15,000,000 on a more normalized US dollar exchange rate, and in terms of our ongoing KPIs of growing the business and doubling to 18,000,000, it's why we're not declaring a victory on that just yet because we need to get the the underlying operating profit on a more normalized basis up to that level so that we effectively have a range which is underpinned of that 18,000,000 level.

28:31 Right. Thank you, everyone. Yeah. So now I was gonna conclude. So thank you, obviously, once again for taking time to listen to our presentation. I'd like to thank you for that Yeah. Questions. Yeah. I know you have some questions. I'd like to think the fact that there's gonna be some some questions coming across. I'd like to see think that we've we've turned the business around, and we've pushed the business forward. So let's have some questions here, guys. Fantastic. First one is Oh. Was gonna say I was gonna say, know, just just in case you got quite a few that have come through. Was just gonna say, ladies and gentlemen, do please submit those questions. I just want Nick and the team to take a few moments to review those. We'd like to remind you that a copy of the slides along with the published q and a can be accessed via your investor dashboard as well. And Nick, if I may just ask you just to read out the question where appropriate to do so and just distribute it to the team, that'd be great, and I'll pick up from you then.

29:18 Will do. Thank you, Paul. So I guess this may be initially for Tris, but James also. How do the increased commodity prices impact the business? And what impact has the gas crisis had? So I'll I'll start from a commodity perspective, and and then James can give you more detail on how it's gonna affect the shipping. And, obviously, the the the biggest shift that we've seen in commodity prices is the the inversion between, JKM gas prices, so the delivered price in in Asia versus the European gas price, which I think we've seen a, you know, €33 switch in that arbitrage that was open, the arbitrage to the East now closing.

30:09 I think the big problem that we have here is is actually getting your hands on gas to be delivered in Europe, and or, you know, I'll let James answer this next question, the the availability of fleet to move that gas when it's available. Yeah. I mean, look. You'll see like, you I mean, obviously, any commodity price of any sector moves to to all time highs. Obviously, the then there isn't there's a degree where you will move into different commodities to, obviously, to take that shortfall. But as far as gas, and we're already seeing it, it's it's on the you know, it's it's in the newspapers. It's everywhere. The fact is that, obviously, what Russia is doing to Germany, and, of course, Germany have got to move now strategically to protect their position. And what's their alternative? The pipeline is closing. Their alternative is to taking LNG in shipping formats, and that's obviously what they're trying to do. So that's only a positive to us because it pushes the rates up and causing obviously, rates higher rates and the fixing is obviously better for us as a broker to take that through.

31:18 Obviously, we are seeing a lot of, in fact, a lot of shipbuilding site being built as well on LNG. So, yeah, at the moment, commodity price is moving too high. So it's obviously it might affect one sector because it gets to a certain point where it's too high to be shipped. But then, of course, that falls into a different sector. It's what I mentioned at the very, very beginning because we cover all these sectors. One goes up, one goes down. And, of course, having the securities desk, derivatives desk, these guys are trading nonstop on the back of either a market falling off or going up. So, anyway, I hope that answers your question. I I think just just just to add to that, James mentioned earlier that we we've seen an increase in activity on our on our physical coal, and and I think that's very reflective of of the of the high gas prices and a move by utilities because they have the ability still to actually burn coal instead of gas and, obviously, coal potentially being more readily available and easier to transport.

32:20 Yeah. Okay. So the next question is is very closely related, and and, in fact, it's probably been partially answered, but it's the the fact that Europe will be importing more energy by ships in the coming years. How will it impact your business? Okay. It's it's just it's only a positive because with what's happened at the moment recently, and I don't like laboring on the fact that there's been atrocities at the moment within Ukraine. But the fact is a lot of lot of products have moved out of the Baltic Sea into Europe. Now, obviously, with those embargoes and sanctions being in place, that oil product has to come from elsewhere. That could be from South America, maybe from The Middle East or Far East.

33:11 So that's gonna create a longer haul movement, which is obviously beneficial for us as a company and obviously beneficial for shipping in terms of ton miles is obviously is is good for shipping. K. Thanks, James. So next question I I will answer is how much of the 31,000,000 accrual in note four to the accounts is accrued bonus? And reality is that the majority of it is, for for those who haven't been involved in this discussion before, we pay 65% of desk operating profit out in bonus. And therefore, in a successful year, the bonus accrual on the balance sheet at the end of the year will go up.

34:05 And clearly, in a less successful year, then that element of of cost acts as a bit of a a shock absorber. We do pay some bonuses in the middle of the year for certain desks, but the majority of bonuses are accrued during the year and then paid post year end. So the answer is the great majority. Next question, James, is how do you expect M and A to play a role in achieving your growth targets? Or will you look more organically in order to keep the debt ratio down? I think I think to answer that question, it's gonna be a bit of both. What you need to understand and the last obviously, the big m and a deal was, what, six years ago when BRAEMAR ACM merged.

35:00 It's these these big these big mergers are never easy to because obviously, there's a culture difference, so it's obviously I'm very aware of how that's it. But the fact is the business has now got into position now. I feel it's it's it's strengthening and feeling strong. The balance sheet's strong. So we're becoming more attractive. The business is about consolidation, so that's already you we can feel we we see the approach coming to us. Obviously, being in the business for, you know, for some thirty five years, I'm very aware of the of what was right and what's wrong, and and Trist two being in the derivatives market for the same sort of period. So I think we'll I think we'll be able to attract some great some star players as we have done already in the last three or four years, but I feel we're even stronger now.

35:49 So small m and a deals are potentially on the wrong horizon. That's one thing we're looking at and key hires. And down the line, who knows what's the right move to do, whether we look at a bigger deal or we don't look at a bigger deal. But at the moment, we're feeling we're feeling, you know, pretty sweet, and that's where we are at the moment, and we'll take advantage of that. I I guess the only thing to add to that, you know, organically versus acquisition, You know, the the scale of the acquisitions that James is talking about are are immediately bottom line accretive if they took place Yep. You know, which which is different to trying to grow something organically. You know, the the investment line is straight in there, but, again, straight to the bottom line on on the additional profit that comes through. Exactly.

36:35 Okay. Well, thank you, guys. Any other questions? Well, yeah. We we have one final question, which, again, I will answer is how much of the receivables is staff loans? And the answer is virtually nothing. We do have some season ticket loans, but but otherwise, we we're not in the business of lending staff money. Alright. That's right. I was gonna say you've literally covered off all the questions there, guys. Like, thank you very much indeed. Of course, any further questions that do come through, the team will be able to review those, and we'll publish the responses on the investment company platform. James, perhaps before redirecting investors to provide you with their feedback, which I know is particularly important to you and the team, I could just ask you for a few closing comments, please. Yeah. No. Not at all. Not at all. I suppose, as I said before, is thank you for your taking your time to listen to our presentations.

37:21 I'm I'm hoping that BRAEMAR becomes on your radar. I like to think that the business has turned around in the last eighteen months. I'm gonna show you that the management team here is very, very focused. You I probably got a lot of color here on this presentation that shipping is in a very good place. It's not it doesn't feel like it's a quick bounce. It feels like more longevity to that. And secondly, I think there is some exciting things in the pipeline for us. I think it's just definitely worthwhile for you to to to keep an eye on what the stock's doing. I think at the moment, we're at a good place. That's all I can say. Thank you, guys, again. Fantastic. James and Nick Triss, thank you indeed for updating investors today. Could I please ask investors not to close the sessions? You'll be automatically redirected to provide your feedback in order the team can better understand your views and expectations.

38:09 So I need to take a moment to do so, and I know it's greatly valued by the team. On behalf of BRAEMAR PLC, we'd like to thank you for attending today's presentation. That concludes today's session. Thank you, and good morning to you all. Thanks a lot. Thank you. Bye.