International Biotechnology Trust (LSE:IBT) — Investor Presentation

0:01 Good afternoon, ladies and gentlemen, welcome to the INTERNATIONAL BIOTECHNOLOGY TRUST PLC Investor Presentation. Questions are encouraged. They can be submitted at any time via the Q and A tab that's just situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and will publish our responses where it's appropriate to do so. Before we begin, we will just like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. I'd now like to hand you over to the executive management team from IBT. Elsa, good afternoon. Hi there. Thank you, Jake. And thank you everyone for dialing in today to listen to the IBT fiscal year end results. We have a usual length presentation and then afterwards, we can open up to q and a as Jake said.

0:53 So in the presentation, we'll be discussing who we are for those who haven't met us or heard us before. We will then have a few slides on the results, which is the fiscal year end to 08/31/2026. Marek's gonna talk about the biotech sector fundamentals, and then I'll come back in and talk about our investment process. So in summary, the biotech sector is basically the innovative engine for the pharmaceutical development market. This is where we are primarily invested. The IBT NAV returns have been above benchmark over one, three, five and ten years. And this is our fifth fiscal year of outperformance on the trot.

1:39 In risk adjusted terms, the IBT trust is now peer leading versus other healthcare investment trusts over five and ten years. We have a yield, dividend yield, which is 4% of NAV, which has gone up quite dramatically actually this fiscal year. So shareholders have benefited from the rising NAV. Backed by the team, Marek and I, which I'll do intros to shortly, and we are based at Schroders Unit Trust Limited. So a bit of background as to who we are. We have complementary, skill sets. Marek's background comes from being an entrepreneur actually in the sector. He's founded multiple biotech companies and exited two. And he's worked within the industry in business development and clinical development.

2:27 My background is capital markets, so I've been following stocks within this sector for multiple decades. So the results, we're really pleased to announce this fifth fiscal year of outperformance. IBT's NAV is up 64.7%. The quoted portfolio up just over 70% versus the benchmark, is the NASDAQ BIOTECH index over in The US, which was up just over 50%. The share price return is over 70% at 73.6%. That was driven as well by the discount narrowing from just under 9% to 4%. And the company bought back over 2,000,000 shares during the fiscal year, which helped bring in the discount.

3:20 This slide shows the discrete five fiscal years I mentioned earlier. For those who don't know us, we took over in March 2021 as lead fund managers. We've both been on the trust many years, but as lead fund managers back in '21. And we've had five fiscal years since. And each year in down markets, you can see on the left, we had a down market, we've had flat markets, we've had up markets. And we've managed to outperform our benchmark under those different environments. Another positive factor is that we have been nominated for various different awards that you can see at the bottom of this slide. I think we won one the other day called boring money, if anyone wants to look that up. They're a great group. So that's also positive to get external recognition.

4:08 You can read our annual report, will be on our website, but some highlights from that on this slide, slide eight. 13 transactions, m and a transactions this year during the period under review. And we've had one more since the fiscal year end. Silence, is actually UK company, was acquired by German Merck in October. We've had nine acquisitions this calendar year. Obviously, fiscal year is different to our calendar year. And over a quarter of the fund this fiscal year has been acquired by major pharma companies. Outlook wise, we think M and A will continue. We think it's part of the ecosystem of what makes drug development work. We're quite happy for our companies to be acquired. They do get acquired at very good premiums and then we see it as upfronting the returns that we would have got over time.

4:59 Equally, we're very happy just holding on to the companies as they launch on their own, which they are more than capable of doing. We can shift the funds and at the moment, as at August end, we had most of the NAV invested in revenue generating companies. And I'll go into more detail about this and where we're positioned and our outlook.

5:24 So this goes to... This shows the share price and NAV returns. And what we've done here is we've actually added the the weeks and or months now since the year end because it's a while ago that was our actual year end and lots get... Lots changed since then. There's a lot going on in our sector and we've got politics going on as well with the elections today. So you can see that we've had a pullback in NAV and share price since the year end. And I'm gonna talk a bit what why, what's behind that. So though we've had this great fiscal year, we have had a pullback and there's multiple reasons behind that. And I'll address those as well in the next few slides. This is a sort of more formal way of showing our performance on a yearly basis and you can see this on our fact sheet every month. We also disclose our gearing position on the fact sheet and you're welcome to have a look at that.

6:21 Marek is now gonna talk about sector fundamentals. Thank you, Hassan. And before I start, I think it's important to mention that biotech and pharma has an increasing portion of GDP spend globally. Meaning there's a big tailwind. We have a population that's getting older, which means that they need more health care and the demand has increased over time.

6:46 And we have seen that BIOTECH also is taking over as the innovative engine of this industry. And I will come back to that in the coming slides. After a couple of years of relatively muted performance, BIOTECH has finally started to move and this year have outperformed NASDAQ or S and P five hundred, and especially during the latter part of the year. And that's a very good tailwind for the sector. With that, also it opened up the IPO window, which been fairly closed in the last four years in a kind of semi bear market for the industry, which had a really good performance during the pandemic, which then consequently were affected by higher interest rates, political interference, etcetera. But we have seen, as you can see on this slide, the last six to nine months IPO window has opened.

7:40 But also clinical success stories and companies have been able to raise money on good data, which also is a really good indicator that the industry has renewed interest from institutions as well. What what is very important to mention in this in this sector is that pharma during the last fifteen years have performed very well when it comes to cash flow. When it's come to innovation, they have had a very hard time to generate new new products, new drugs, and innovation has been bit hampered. And as you can see on this, on the left hand side, pharma companies with their major products getting off patent specific years It's just an excerpt of the big patent cliff that is coming for the sector.

8:30 On the right hand side, you can see the other side of the coin, which means that biotech is developing drugs, entering the market, and pharma is scooping them up. And the... This is just a couple of companies that have been acquired in our portfolio during the last year. And as you can see, pharma involvement has been very, very big. This slide, you can also see ten years ago, pharma was the main engine and 70% of all drugs, I mean, was developed from pharma. And as you can see on this slide, over the last decade, approximately similar amount of drugs have been approved, around 50. But what's very much important here is that biotech and academia has taken over as the innovative engine. And during the last five years, around 70% of all new drugs approved emanate from biotech and pharma. So we have seen a division of labor, so to speak. Biotech is taking on the innovative side, develop the drug at a certain stage, whereas pharma takes over and do the cumbersome very expensive late stage trials, the regulatory framework, manufacturing, distribution, and marketing.

9:47 And that has worked very well, which has meant that BIOTECH being able to grow and being acquired by pharma with hefty premiums, which we obviously have benefited from. This is an interesting slide, very busy, but shows you the number of drugs companies that that are kind of coming through in the in the coming years. The ones in the red are companies already been acquired during the last couple of years. But also you can see many of these companies, especially on the bottom side when you see ARG, GENEX, Revolution, etcetera, are companies that by themselves have grown into so big size that very few pharma companies can acquire acquire them, but they can also acquire themselves. But notwithstanding, they also are very, very productive and high growth companies that we are happily owners of.

10:42 Okay. Thank you, Marek. So moving on to our investment process. And those of you that have dialed in before may have seen these slides. But just as a reminder, we do take into consideration macro factors and top down aspects of what drives the capital markets, as well as the fundamentals of the biotech companies we're invested in. So the way we consider things is things like interest rates. So the earlier stage companies will be hit harder by rising bond yields, like the ten year bond yield, has been going up in recent weeks.

11:15 Equally, we've taken into account asset allocation in terms of tilting the fund into later stage companies or earlier stage companies and derisked assets, etcetera. This has enabled us actually to navigate various different environments that we've seen in terms of the last five years. For example, down markets and flat markets and up markets. And actually, we can really take advantage of that because we're a closed ended fund, Having the gearing on the sidelines to use actively and take advantage of pullbacks is a great tool to have in our box and we do do use that. In terms of idea generation, America and I do visit the America often for investor conferences. That's to be expected. Most of our investments are US based.

12:04 We generally have regular meetings. The companies that we're actually invested in, we have much more regular meetings just by telephone, obviously. Risk mitigation side on the right hand side, we do try and reduce exposure going into what we call binary events. So that might be a clinical trial readout or a regulatory decision that we feel has potential risk to it. And in that way, we can preserve capital and it also keeps a lid on volatility. Another aspect of our bottom up approach to companies is we are valuation sensitive. So however much we like the science or the achievements of a company, if we think the multiple is too high, we will step to the sidelines and then look for new entry back into that company, which we've done multiple times. INTERNATIONAL is an example of that actually.

12:58 This slide, the top, I know it's busy but the top section of this slide shows the side that Marek talked about. So ten years ago, internal r and d, pharma r and d really dominated the generation of new drugs coming onto the market. That is now the opposite. So it's BIOTECH that's taken over as the engine of new drugs coming onto the market. And these are approvals by FDA, the regulator in The US. We think that's a shift and makes sense. So smaller companies tend to be more entrepreneurial, innovative, nimble, quicker, and generally all the hallmarks you'd expect for a smaller company to innovate. And the larger companies are less nimble, but they are good at manufacturing at scale. They're good at distribution.

13:43 They're good at marketing. And so they're they're sort of sticking to their knitting. Now, as you know, IP expiries are real problem for the pharma guys at the moment. 400,000,000,000 coming off patent in the next handful of years. And that's why we're seeing a big wave of m and a. So last year, we had nine deals in the fund on the calendar year. And this year, we're already up to nine. So run rates, it could be higher this year. So it's all looking like this is a steady flow of m and a, albeit slightly bolus at the moment because of the bolus problem of IP expiries that pharma are suffering. The bottom part of this slide just shows the life cycle of a drug. From drug discovery all on the left, all the way up to three of the phases, one, two, and three.

14:31 Going to the regulator which is twelve months or so that they consider a drug application and then give them either the stamp of approval or no. They then launch, you get the highest growth of the launch phase at first. That will then mature and flatten out and then there's an IP expiry after about ten years on the market tends to be. Now, we are the the light green focused area. So later stage investments phase three ish and at the regulator and launched. Many of our companies are de risked clinically and through the regulator. So commercial companies and that's why... That's where pharma has been shopping. They really need these revenues tomorrow rather than wait ten years. So that's I think probably why we've had such a high hit rate of m and a in the fund.

15:22 I mentioned about how we think about politics and macro and interest rates and we do consider these things. We've had a big tick up in the ten year bond yields since the year end. That's been part of the reason as to why there's been a big pullback in our names. The the second part, and I... We can't quantify this, but the second part is quite an interesting one. Now, Moderna had a very high profile expected readout for their cancer vaccine, which actually is now called an individual neoantigen treatment INT rather than cancer vaccine. They're trying to emphasize it's a treatment in melanoma.

16:07 Now that was meant to be announced around now, but instead it was announced earlier in the of August, just before our fiscal year end. The knock on effect of their press release, which just didn't give us any data, it just said this worked, was that Moderna share price skyrocketed. And this hit a number of funds, hedge funds in The US who managed a huge amount of money. Now, they went through a period of what's called degrossing. This is all what's been happening since this data. And in order... Degrossing means they get redemptions, they've been caught short on the Moderna trade, they've had to cover their short positions. In order to do that, they need to sell their long positions.

16:54 So the high quality, high good sort of strong biotech companies have been hits as there's selling pressure on those names. And the lower quality names have gone up as they've... People have covered their shorts. And I'm sorry this is complicated, but it's useful to know. Suffice to say, we've seen rising bond yields, degrossing and quietening of m and a as well, I would argue, has also taken some heat out of the sector. So all of those factors is is to explain why the NAVs come off. You'll know that one of our tools in our box is gearing, and you can follow how we gear the trust on our fact sheets, although it's slightly sporadic because it's only a snapshot view at the end of the month. But at the fiscal year end, we were low single digit gearing, and you can see from our September fact sheet that that's increased. And then you can hear from probably what I'm saying that as and when markets retract for no logical fundamental reason, we've got this nice tool to capitalize on on the reduction in prices for these companies.

18:04 We divide the sector into three buckets. So if you can imagine a biotech company going from idea all the way to market, development stage is whether it's still in the clinic, so white coat biotechs if you like. And then revenue growth is when they've launched a product, so it's de risked, it works, it's safe, the regulators approved it. That's called revenue growth, but they haven't yet turned a profit. And then profitable, which you'll all be aware that what that is. So those three buckets is how we divide the sector. And you can see at the end of the fiscal year, so 08/31/2026, we had 27% in the light blue turquoise section development stage. 43% in revenue growth, commercial ready, commercial new launches, not companies.

18:54 And then 32%, is that right? I can't read it. It's so small. 30% in profitable companies. And so turning over the next slide, what we... This is a new slide. We've shown you what the fund looked like a year ago. And you can see here on the left, year '25, half the fund in the bright turquoise, those are the development stage companies. And on the right hand side, you can see that we've cut that back at the end of August. We've doubled down on on the revenue growth names, which we think are the higher quality companies. Those are the guys that have been hit by this degrossing. And then we slightly increased the profitable. So this is the sort of thing we're doing in the background.

19:40 When you invest in IBT, we try and keep an eye on what's going on, not just buy and hold an investment for fifteen years. It's such a news heavy changing dynamic sector. We do like to be active with your holding... Our holdings that you're invested in and try and keep on top of that. The next slide, we show again, it's not very easy to read, I'm afraid. I'm sorry about that. But the purple line that goes along is our gearing position. So this... The whole slide shows our beta, so the risk of the fund and our gearing. You can see that in April 25, we maxed out our gearing to about 20%. That was due to Liberation Day hitting stock market.

20:25 So indiscriminate selling of equities. And then on top of that, we had turmoil at the regulator in The US, the FDA. So we use that as a buying opportunity. We geared up the fund and as and when... As the market recovered, obviously, the natural thing is to reduce our gearing so we can use it again the next time it pulls back. It was slightly sporadic in terms of m and a. So the numb... Every time we had a deal, we had cash coming into the fund. We of course pay out 4% of that cash coming in back to you guys, the shareholders. But the the spikes in cash are m and a deals. And then at the fiscal year end, like I said, gearing was about low mid single digit.

21:12 And we've actually used that gearing facility in recent weeks because of this pullback in the names that we really like. The beat of the fund reflects that. So you can see that the the beta coming down since liberation day as you'd expect because the valuations are improving over time since that big marked sell off. So this slide just shows the calendar year m and a deals for the IBT. We've had nine this calendar year. The latest was The UK company, Silence Therapeutics being picked up by German Merck. And that's the same number in total for 2025. And those of you who dialed in to our post JP Morgan call in February, I think when we come back from JP Morgan, you'll remember the bank is saying the order book is even busier than last year and that's certainly playing out in the deals that we've seen within the fund.

22:10 So how do we do bottom up investing? We've talked quite a lot about top down. What about bottom up? Like I've mentioned, it's a news heavy industry just because your company that you're invested in has the best science and the best data to date, doesn't mean you're not gonna be leapfrogged by someone else going quicker, faster, better. And the way we approach that is if we like a particular mechanism of action, a new mechanism of action or that particular therapeutic area where people have a similar approach. Instead of buying one and holding for long term, we will buy a number of them. That way, it diversifies and hedges us. And then as and when the company matures over time, we can ditch the losers and double down on winners.

22:56 And that's kind of how we think about various different disease areas. So there's some baskets on this slide showing the different disease areas that we like, rare diseases, oncology, cancer, metabolic diseases and central nervous diseases. All familiar, I'm sure to your high unmet medical need and lots of innovation going on in the background by these companies.

23:22 Okay, so again, this is a familiar slide to you but the names have changed. All of these companies here are commercial de risked assets. So they've succeeded going through the clinic, the drugs approved, they're on the market and they're selling to patients. Now, these are the names that historically in the last handful of years have been the shopping list for pharma. So we've lost a lot of the companies that originally were in the... This slide two years ago, and then again last year, and this is our refreshed list. The characteristics, like I said, are that these are de risked. It's like pharma growth. So you don't have that potential to just lose all your money in a in a failed clinical trial.

24:09 And I'll pull out some numbers. I know it's busy, but a third of the fund, so you can see at the bottom 33% are in just these names. And if you were to go out and buy the ETF, say for the NBI, our benchmark, it's only seven and a half percent. So we can tilt the fund into these companies where we think that they are the highest quality, basically. The characteristics we look at are EV to sales multiple. So what we do is we take the twenty thirty expected consensus sales of Bloomberg. This isn't our own models. These are the average of the sales expectations from the sell side and apply multiple to that. If something gets too expensive on that multiple, we'll walk away. Even if it's fantastic science and, you know, they're doing great, we will take take profits.

25:01 And if this multiple goes down to sort of two, three, four, then we'll we'll happily invest. Now, I mentioned INTERNATIONAL, it's one of them. INTERNATIONAL, the top of this list, which is the largest position is by position size. These guys went to seven, eight times and we had to sell the company. And we can't see another company on this list, Revolution, that has just had fantastic data in pancreatic cancer, doubling of overall survival where nothing historically has worked. But because it's so expensive, we're on the sidelines. It doesn't mean there won't be an opportunity in the future to go back in, but we just think it's too expensive at the moment.

25:45 So the next slide is showing our top 10. This is something we announce publicly every month. So you can see the end of September top 10 on our fact sheet on the website. And the final penultimate slide is talking about the unquoted. So at the end of the fiscal year, we... It was the rating in unquoted was just shy of 7%. And the way we get exposure to unquoted is by investing in specialist venture funds. So it gives you that diversification and you get these fantastic so far, fantastic IRRs from these funds. And you get access to these via IBT making up about five to 15% of the trust. That's the kind of the barriers of the waiting. Obviously, that's gonna bob around depending on the performance of both the quoted and the unquoted parts.

26:41 Now we joined Schroders nearly three years ago, and it gives us access to Schroders Capital. And Schroders Capital have a an in on various different high caliber, high performing US specialist venture funds. So this is a great advantage. And we've announced three new funds that we were committed to, TCGX, an Asia fund within TCGX, and Third Rock. So that's really fantastic news. So now we have five funds exposure within that 7% for you guys to benefit from over time. And finally, yeah, finally, before the summary slide, I talked about the discount coming in, which has helped the share price get higher returns versus the NAV return.

27:32 That's partly because I think the sectors become more back in favor and also the investment trust generally, think are becoming more in favor. So that's met... We've met... That's managed to get the discount to close and help us improve the share price, plus the buybacks that we do regularly as and when the discount gets too wide. So that's also encouraging news under... During the fiscal year. So in summary, the sector has seen a nice recovery, especially since the lows of April 25, Liberation Day. We've had steady stream of m and a, which we think will continue. The demand for m and a is still absolutely there. And to put some numbers to that, one of the slides I think Marek showed was about a 100,000,000,000 in in revenues being acquired, but they've got a 400,000,000,000 hole.

28:22 So we still think there's a great demand to buy these biotech companies. Over a quarter of the fund was acquired in the last fiscal year and we have shifted to the revenue growth names in terms of our top down view of this sector, which is slightly more than the development stage this time a year ago. So that is the end of the formal presentation. And I am gonna hand back to Jake to handle q and a. Or do we do the q and a? Perfect. Elsa, if may just jump in there and thank you very much indeed for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the Q and A tab that's situated on the right hand corner of your screen. But just while the team take a few moments to review those questions that have been submitted already, I'd I'd just like to remind you that a recording of this presentation, along with a copy of the slides and the published Q and A, can all be accessed via your investor dashboards.

29:17 Elsa, America, as you can see there, we have received a number of questions. So if I may just hand back to you to address those where appropriate. Sure. And if I pick up from you at the end, that'd be great. Thank you. Okay. So are you increasingly positioning the portfolio towards companies that are likely acquisition candidates? Or does m and a remain an opportunistic outcome of your fundamental stock section process? Yeah. Can I can do that? I think it's a really good question. So how we evaluate companies is the first thing we look at is the unmet medical need. Is this company addressing a disease or or or ailment that that people would be willing to pay for it, or will it cure patients? So irrespective of of that, any good company or project, we we kind of focus on investing in the company

30:06 and the potential sales of the product. If the company gets acquired, we get a imminent premium. But if not, the company will grow into the evaluation. So for us, it's very, very much business as usual. We do not really care. The difference is that we get our performance very quickly. And then we can reuse the money for investing in other interesting opportunities. And also, we... I mean, it's our view that this really is like an ecosystem, and biotech is good at innovating. And, you know, seeing these drugs in the hands of a big pharma company makes sense. Know, they've got the the sales reps and the wherewithal to distribute and market the products. So it's sort of, for this sector specifically, it make... It is sensible that many of these assets go into the hands of pharma.

30:52 Okay, the next question. You mentioned how you tilt and adjust the portfolio to mitigate potential risks as you see them arising.

31:00 Do you encounter much in liquid? No. So these... The this... The question is asking, do we have a problem getting in and out and trading the stocks because of liquidity? And the answer is The US biotech companies we're talking about are multi billion dollar market caps. We can trade very quickly with £350,000,000 in size. So we we don't have a liquidity problem. Next question, how concentrated is the portfolio in individual therapeutic areas, which we're just pulling up? I think that's actually... Is that something you need to put in my fact sheet? Yeah. We do. So this will be on our website. But basically, we have... Thank you. Can you see it? Hold on. Here we go. So the the majority of the funds and has been for a while actually is in rare diseases.

31:50 And we like these because rare diseases as it sounds are diseases that affect a small population. But actually, the totality of this area is quite huge and fast growing. And you don't need huge amounts of money to do the trials because the trials are smaller. You don't need a huge amount of money to launch because there aren't very many patients and manufacturing as well. It suits a small company. And there are some fantastic innovations in this space, primarily because we understand the disease at a molecular level. Not not so much us too, but the the companies that are medical universities, etc, where the actual targets are discovered and then goes on to venture funding. So there's an understanding of the biology, making it easier to find a drug to apply to that. The next one down is cancer. So rare diseases is about a quarter of the fund.

32:44 And then next one's oncology, just over twelve percent. So it's not concentrated in one particular disease area. It's spread across the areas where there's a high unmet medical need. Okay. How do you think AI and quantum computing will impact drug discovery and time to market? You might this impact the quoted sector and your options. How might this impact the quoted sector and your opportunity set?

33:10 Yeah. Absolutely. I mean, we... I've been working with with... In in in the space, in the industry, and we have always used as much computational power as possible because what what you wanna avoid in in drug development is you wanna avoid failures, and failures are very costly. And if if you wanna have a failure, you wanna have it early on. And I think computational power will make that much easier, much faster. You will probably fail much fewer times in early on in development. So that's a good thing. But the challenges will come later on when you when you have to do or conduct real clinical studies in phase twos and phase threes. But a specific question was how it will affect the quota sector early on. What I have seen and asked as well is that pharma is really much going into fishing for early stage projects in China because then there you can... They are very good at actually AI and and computational probably slight improvements of drugs available.

34:11 So pharma is fishing in early stage development, but later stage, it's less, I would say, less crowded because you need to have clinical trials at hand. And we... This is one... Also one of the reasons why we have focused on a bit later stage in our investment process to avoid these potential surprises that often come up when a pharma company strikes a deal with a Chinese company and suddenly Frog Leap is one of the early stage quoted companies. Thank you, Marek. And then I think this is the last question. What do you believe differentiate the winners and losers in the sector over the next year to year... Two years? So you've got the... What what makes a stock a winner in this sector? Obviously, things like hitting a positive clinical trial readout. So there's no change on that front.

35:01 And then being picked up by pharma, obviously, that would be a winner. And losers would be those that do the opposite, so fail. Another angle I think would be a successful launch. So a number of the companies we are invested in, especially at the moment, we need those launches to work. And if they slow down earlier than expected or there aren't really as many patients, that would be a risk. So that's something we monitor closely. This week actually, we're in the throes of earning season. So we've had, I don't five companies report last night after the close. We've had numerous companies before the... Oh, the... It's open now actually. So today, and that's exactly what we're doing every day. So are the sales growing in a healthy way? Do we wanna stick with this position?

35:44 Is this company looking fully valued, etcetera? That's sort of the bread and butter of our job. Think that's the last question, Jake. Absolutely, guys. And thank you very much indeed for addressing all of those questions that came in from investors this afternoon. Of course, if there are any further questions that do come through, we'll make these available to you after the presentation has ended. But Elsa, perhaps before really now looking to just redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and to the trust, if I could please just ask you for a few closing comments just to wrap up with, that'd be great. Super. Thank you, Jake. And thank you everyone for taking the time to dial in. We really appreciate your interest and your investment within IBT. So all the best. Thank you. Perfect. That's great. Could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback? On behalf of the management team, we'd like to thank you for attending today's presentation.

36:39 That now concludes today's session. So good afternoon See you.