Hi, and welcome to the City Chic Collective Limited FY 2023 results. All participants are in a listen-only mode. There'll be a presentation, followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key, followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. Phil Ryan, CEO and Managing Director. Please go ahead. Thank you, and, good morning, everyone, and thanks for joining us. I'm Phil Ryan, CEO of City Chic Collective, and I'm joined today by Peter McClelland, our CFO. I'll talk briefly on the results, and I'll focus on the strategy to return to profitability, and then talk about our outlook. Moving to slide 3. In 2023, our focus was on right-sizing the inventory and bringing the business back to a positive cash position in what was a challenging environment. We've done that successfully. As outlined in May, we made the decision to accelerate the inventory clearance and are on track to have new and relevant product in our core markets for the key trading periods of Black Friday and Christmas. This has impacted our FY23 results, but puts us in a much stronger position into the second half of FY24. We undertook a strategic review focused on our online and international businesses to assess the best way to return to profitable trading. This was a thorough process, which included the assistance of external advisors and confirmed, firstly, that the opportunity in Australia, New Zealand, and the USA is substantial, and that we'll optimize our returns by focusing our efforts in these markets. Second, we need to go back to what made us great by focusing on three key areas of our business: our customer, our product, and our operating model. Focusing on high-value customers and the emotional connection that drives loyalty is key. In order to do that, we need to reinvigorate our ranges through listening to her and anticipating her needs. We have already simplified the business model and are further driving down costs to rightsize the operation so that it can be agile for all demand scenarios and through all economic cycles. As a result, the first half of FY 2024 will be a period of transition as we clear residual inventory, navigate what remains a volatile market, and implement our strategic initiatives and cost outs, especially in the USA. This will set us up to be profitable in the second half. Moving to slide 5. Revenue was down 15.8%, excluding the 53rd week of trading. However, was up 7% on FY 2021, outlining the strong performance in FY 2022, especially in America. The underlying EBITDA loss of AUD 24 million includes AUD 22.3 million in provisions and write-downs. I'm not going to dwell on FY 2023. It's been a year of balance sheet action. As guided in May, we accelerated the inventory unwind and did what was needed to get our inventory position right. From this action, we have now a much more commercial inventory level in the continuing business at AUD 53.8 million, well below our target of AUD 100 million. This was assisted by the sale of EMEA, an exceptionally strong clearance period, especially in the ANZ business in the second half. This has continued through July and August, as we have even more aggressively cleared out residual stock to ensure we are in a strong position into the second quarter to reset our business, focus on our core high-value customer, refresh our product mix, and deliver on our path to profitability. With the inventory release, we delivered a cash balance at the year-end of AUD 10.9 million, with strong operating cash flows of AUD 29.8 million to the total business. Accordingly, we adjusted our banking facility with new liquidity-based covenants in line with the business' future needs. At the year-end, after the year-end, we sold the Evans assets for GBP 8 million or AUD 15 million. Accordingly, EMEA, which had an operating loss of around AUD 25 million, Australian, due to the accelerated inventory clearance, is excluded from this result. EMEA was challenged initially with logistical issues, and over the last 12 months, we've seen a very tough trading environment. I will talk more later about the positive business impacts of the sale in the presentation. Customer numbers are still around the 1 million mark, with Australia gaining 4% in FY 2023. However, average spend is down, reflecting the economic conditions. She's not left us, she's just pulled back her spend because she's feeling a little concerned. The USA saw a decrease in customer numbers, however, an increase in spend as we've really maintained what we see as our core customer in the US. Moving to slide 6. The overall margin reduction was 18.7 percentage points, around half of which related to trading and half to provisions. The trading margin was 48.7, down 10.4 percentage points on the prior year, reflecting a challenging competitive landscape, especially in the USA, and our decision to accelerate the inventory clearance in the second half. We took $22.3 million in write-downs and provisions for the year in the continuing business. The final provision of AUD 16.8 million includes 5.6, relating to residual US stock, comprising of fragmented and aged lines that we didn't move to the new warehouse. The balance of the provision is reflective of the inventory profile. This reduced our margin by a further 8.3 percentage points. Our fulfillment costs were at 20%, and with further actions, we expect this to maintain at or around 19% of revenue, with the ability to scale with sales, especially in the USA. Supply chain inflation, as already outlined, impacted us materially through the first half and into the third quarter of FY23. Marketing spend was managed tightly with demand, especially in the second half, and for the year, dropped from AUD 19.5 million to AUD 15 million. In operating costs, there was AUD 4.1 million FX-related intercompany benefit to US dollar stock purchases, and this is a non-recurring benefit that is embedded in the operating costs this year. Finally, on Slide 7, we have provided a cash flow bridge, which shows how we went from a net debt position at the end of FY 2022 to having cash of AUD 10.9 million as at the second of July 2023. With that, I'll move on to the work we have done around the strategic review and the outcomes which will steer us back to profitable trading in the second half of this year. And move. Please move to Slide 9. The strategic review confirmed that there is a large addressable market in plus that is growing. The USA is now a $54 billion market with strong future growth prospects, and within that, the channel we play in is the US plus-size online market, which was quantified at $6 billion, and we have very minimal market share. Not only that, it is projected to grow at 7.2% CAGR between now and 2030. The Australian market, where we are the major player at almost 20% market share, is expected to double by 2030. So there is a lot of runway for us to grow. The review also found that the specialty plus-size players are best placed to win on fit and styling that delivers an emotional connection, which supports our actions coming out of the review. Moving to our strategy and the path to profitability on Slide 10. Our strategic review also involved extensive market research on our customer. The results of this process delivered us a path that I know we can execute on. We need to be agile, cost-focused, better dressing business with an emotional connection to her, adding elevated casual lifestyles from our product learnings, especially from our Avenue experience, selling high-value garments to a high-value customer. This was our model, and we know how to deliver this to market successfully. To achieve this, we need to simplify our business and reduce our operating costs, and we are well into this process, and we'll have this completed by the end of the first half, FY24. We've set measurable outcomes from each of the three key focus areas. The first is to amplify our focus on her and our emotional connection. Through the history of our business, we've always put her first, and with the focus on clearing inventory, we've put the needs of the business first and have now returned to focusing on her needs. I know we can turn that around fast with good new product. We've known her for years and really understand who this customer is and how to talk to her. We need to continue to listen to her and anticipate her evolving needs. She is our most valuable customer and is already the largest part of our database at 45%. She has attractive economics with the highest sell price and basket size from both the market research and our internal customer base metrics. To achieve this, we need to deliver a product that she sees value in through fit and styling. We'll focus our marketing investment in two areas: reengaging our large email base through social, digital, email, and other marketing channels, and targeting lookalike audiences. This will deliver higher average order values, increase retention, and drive profitability. The second focus is to revitalize, excuse me, our range and deliver product that delights her. We are simplifying our range to be around 3-4,000 products on our site that will talk to a City Chic lifestyle and price point, and they have high value and fashionable styling. We need to lower the volumes per style and ensure that the products are right for our customers in the USA and Australia. We need to follow demand and be agile in our supply chain and focus on much faster lead times that can deliver products she's demanding, making sure we're engaging with her with new and exciting product on a weekly basis to drive traffic. When we acquired Avenue on the website, this was our strategy: to raise the sell price and deliver a high-value product to this customer to drive revenue. However, as lockdown-driven demand shifted towards conservative tops, footwear, lounge, sleep, and other type of products, we moved with it and, in hindsight, overinvested in these areas to drive our growth. We are now tighter at our assortment management and option count and are buying on shorter lead times with the ability to flex up fast into new product or repeat styles as the customer is demanding them. Through this, we'll create products with increased sell price and deliver a better margin. Our target is to get to 60% gross margin and be on 3 stock turns, excluding stock in transit. The third focus area is to simplify the business and reduce costs. We achieved a lot already. With the exit of EMEA, we have materially simplified the operating model. We've streamlined the supply chain, reducing origins from 7 to 3 and factories from 101 to 61, with more consolidation expected in the next 12 months. We now have 2 global warehouses, down from 12, and we are also trading in 3 countries, where we were trading in 6. All these changes are how we deliver the agility and the cost savings. We are back to a culture of cost containment, where our key focus is delivering a quality garment at a great price through having an efficient business model that can drive lower prices and costs to increase margin. We have focused fulfillment strategy. We have a focused fulfillment strategy, and have already delivered fulfillment at 20% of revenue in FY 2023, and our target is 19% for FY 2024. Including this fulfillment reduction, we're targeting an annualized AUD 15 million in cost savings that will be implemented through the first half to impact the second half and beyond. Yesterday, we implemented a AUD 6 million annualized saving to wages, reducing the support office headcount on the H2 FY 2023 run rate by 35%. This is our path back to profitability and is what we have executed successfully for many years. That's a summary of the strategic review and the actions and targets that came out of it. I'll now talk through the more salient points on the next slides. Slide 11, that gives some great quotes from our customers, and this is a few of the many we get each week. Our extensive customer insights will only grow as we leverage our wealth of customer data, further enhancing our already strong customer satisfaction levels. Slide 12 shows how attractive this customer is and gives further market data on our target customer. She has a materially higher spend and a higher frequency than average, and also identified that in the USA, this is a large cohort of the online market and one that we can target to drive revenue growth. As I said earlier, she is already the core of our customer base at around 45% of the current base, and in quarter four, we saw success in targeting her with a 35% increase in new core customers on our Q3 run rate. This happened from focusing our marketing efforts, as I spoke about above. Slide 13 shows how specialty plus-size retailers can win in what is an evolving and growing market. It shows that focusing on experience through product fit and driving an emotional connection is key to success. This data has confirmed what has driven our business for many years. Slide 14 talks a little more about the second focus area of reinvigorating our product mix through a more disciplined and targeted product range. The key addition here is that we'll create one range for the world that will be more aligned with City Chic price points, lifestyles, and products. We'll create in-season, ranges for both hemispheres, but leverage this around one product stream, where the last three years we've had two. We are really minimizing the conservative value stream of product I've spoken about before, and it is, it is what has driven the lower sell price. In Australia, this has historically been our strategy and operating model, and in the U.S., almost half of our sales are currently with City Chic product, and 49% of the Avenue website customers have already purchased a City Chic lifestyle garment. This product has also been the product demanded by all of our partners. This is not a big shift in mix in Australia and will be implemented in the second quarter FY 2024, with new inventory for summer arriving in September. The USA has forward purchases in the conservative value product for the first half, and will transition mix completely in the second half as we deliver the right product mix that will engage our customer, and we are driving to achieve our targeted 60% gross margin. Slide 15 gives a view of what these products are and what additions came from Avenue to drive the value to her and increase the sell price. The first box shows the City Chic, City Chic strengths that have driven our success for many years, mainly that better dressing, event wear, and better daywear. This is the product we know resonates with our customers in the USA and Australia. The second box shows the targeted additions to our range that come from the learnings of what she sees value in from Avenue in the U.S., and has also been successful in the Australian business. This is a more elevated casual lifestyle with a greater trend focus, and that makes her feel good, doesn't just clothe her, and from this comes that connection. You can see in the third box, we highlight in red where we are really cutting the range and how we drive the customer away from the emotive purchase to the functional purchase. We've stopped this less emotive, low-value product that has much higher levels of competition in all markets. We will reduce our option count from 8,000-9,000 styles to 3,000-4,000 styles on all of our websites. Although this is a shift in focus, it is not a major shift away from our core, and our initial reads in all markets are pleasing. Moving to slide 16. By simplifying, we'll rightsize the business to deliver sustainable and profitable growth to withstand cyclical demand shifts in our core regions. The consolidation of markets, reduction in websites, simplification of supply chains, and the reduction of our range is reducing the business activity facilitating the cost reductions. As I said earlier, we have achieved a lot already in the area of supply chain, and additional to this, yesterday, we implemented a 35% reduction in headcount in the support office in Australia and in the US, with an expected annual saving of AUD 6 million on the FY23 run rate numbers. We are also in the middle of a cost-out program, targeting AUD 2 million in annualized savings, and our logistics target of AUD 10 million that we put out in May has AUD 3 million in annualized savings from EMEA, taking our targeted savings for the US and ANZ at current volumes to an annualized AUD 7 million, of which around AUD 2 million was achieved through the second half of FY 2023. This is how we can deliver a logistics to revenue ratio of 19% into the future. This gives us a target of AUD 15 million in annualized cost savings for the continuing business to be implemented by the first half of FY 2023. Moving to Slide 17 and the exit of EMEA. This aligns with our strategy and enables us to focus on the high-potential US and ANZ markets. In FY23, the EMEA business had a loss of AUD 25 million before stranded costs. Exiting has facilitated a lot of the office restructure to reduce activity and complexity that I outlined earlier. The strategic review identified that pursuing our core customer in EMEA would be expensive, and this was the key driver of the decision to exit, as we felt the investment in customer acquisition was better made in the USA or Australia, ANZ, where we have a proven record with this customer and product. The Evans business was focused on our conservative value stream of products, and this was the global leverage that we thought would drive demand. As we are really minimizing and cutting back this product stream, the decision to exit the market was the right one for the business. Further to this, with the logistical challenges, EMEA was the focus of our inventory build. It has impacted the sales and margin of other regions as we relocated inventory in FY 2023 and into the first quarter of FY 2024. We've dealt with the inventory position and have sold the business to simplify our product purchasing. This simplification of our supply chain into our two destinations and many warehouses, and the reduction in websites and partners, is a significant part of the cost reduction. Of course, the cash injection strengthens our balance sheet. Moving to the current trade update on Slide 19. The decision was made to further accelerate the clearance of inventory in July and August, having a material impact on both sales and margin. As previously outlined, we rebalanced seasonally appropriate product from EMEA to the USA and Australia and New Zealand in the fourth quarter of FY 2023. This inventory has not performed to expectations and has needed heavier promotion to clear. Coupled with the challenging economic environment, this was the driver of our performance so far this year and will turn as we revitalize our product mix and realize cost savings. July and August last year were also very strong trading months compared to the ten months that followed, with sales flat on FY 2022 and the full year down 15.8%. Cycling this, sales are down 33% at a total level, 34% in Australia and New Zealand, and 31% in the USA. We've done what's needed to clear the inventory and get it to a commercial level. We had some work to do in the first quarter, and this has resulted in challenging trade, but we are now in a much better position and have seen strong results on the product that aligns with our future strategy. Moving to the outlook, Slide 18. We expect to be trading profitably in the second half of FY 2024, as we see the benefits of the strategic review and the cost-out program. With the transition of products in the USA starting in the second quarter, but not fully implemented until the second half. We have new seasonal products in market for the key trading periods of the second quarter, and we'll have an improved inventory position in the second half, focused on our high-value range and high-value customer. Slide 19 gives a focused outlook. We've taken the pain on inventory position and are ready to get back to focusing on our customer. We are focused on our key markets that have known brands and strong traffic growth, with large growth potential. We implemented the strategic plan, Focusing on Her, delighting her with product and simplifying the business and reducing costs. We will have a focused and aligned customer base globally that can drive profitable growth. We will drive all of our targeted metrics, gross margin, 60%, logistics at 19%, 3 stock turns, and AUD 15 million in cost out, delivering profitability in the second half. Most importantly, getting back to what made us great, an agile supply chain focused around her, managing inventory with discipline and data-driven decisions, leading to strong unit economics. I'm very optimistic about the future for City Chic, and I have the right team around me to make sure we execute on the key focus areas I've outlined today, which will set us up on a path to profitability. Thank you, and operator, I will now open up to questions. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the headset to ask your question. Your first question comes from Owen Humphries from Canaccord. Please go ahead. Good day, guys, and thanks for taking my question. The first one, just around the inventory levels. I couldn't see it, maybe it was an oversight, but can you talk through the inventory that was sold as part of the UK and EMEA transaction, and two, the levels of inventory as at the end of August? So in respect to the EMEA inventory, there's about AUD 19 million of residual inventory that was being carried at the time or at the end of the financial year. All of that inventory was sold across. So all of the EMEA inventory was sold across. There was an impairment taken on that inventory, so as we sort of looked at the sale proceeds. So that AUD 19 million is sort of goes as part of the sale process. There has been, as we've spoken about before, rebalancing of inventory out of EMEA, across other parts in, you know, the world during the second half, where we put seasonally appropriate stock. We moved that out because that's. EMEA was where we had a high concentration of the inventory build. ... That's also been the product that we've traded heavily through the second half across the rest of the regions. In terms of August, we haven't given sort of specific guidance on that, but we have, you know, we have continued to trade down the residual of the, the EMEA and stock and the, the end of season, winter and summer lines, depending on the season. So that balance will have come down since August, and we start now to see the intake at around, you know, end of August, September, for the new season inventory. On what we've seen in the new season, has been very positive, and looking forward to getting that all in and trading back to where we know we can, especially in Australia. I think that clearance through EMEA in Australia in July and August has really hurt. As we've seen the new product ranges come in, we're getting great results, especially from our lady, as I said, here at home. You know, August, we have reduced the trading stock, and there's a lot more newness coming through, and we're in a good position right now. Good one. Year-on-year is tough with, big, just cycling a bigger comp. Can you just talk through month-on-month, how's that tracking? Maybe August first, July, versus, say, June. Have we kind of stabilized? I know growth is decelerating, but just understand how the month-on-month is tracking. Yeah, I think June, we put in the... You can actually work it through, given we gave our results. I think from week sort of 52, 45-52, we're down 24%. July and August, as we sort of got towards the end of winter, August has been a little more challenging, but as we've come out of August and dropped the new product, we're seeing better results. Your next question comes from Craig Woolford, from MST Marquee. Please go ahead. Morning, Phil. Morning, Peter. How are you guys? Hi, Craig. Hey, Craig. Good day. So can I just ask about the sales base? So the second half continuing business sales base looked to be $120 million. Yeah. You've obviously talked about the year-on-year decline. You know, is that $120 million sales base a good yardstick to think about what a six-month sales contribution for the business is? Or is it still parts of the businesses that are shrinking, excluding the discontinued businesses, of course? Look, I think in the current environment, Craig, that's a reasonable assertion. I think we did AUD 150 in the first half in the continuing business. You know, July and August, as we said, were strong months last year, so I wouldn't expect to be as far down in the first half as what we've done in July and August. It'd be more of that sort of closer to last year. But, you know, in the current environment, we, the second half is normally a little bit lower than the first half, and we've got all the promotional cycles and, you know, less northern hemisphere now with EMEA. So, you know, we think a little bit more than AUD 120, but in the current environment, that's about there. Your next question comes from Chami Ratnapala, from Bell Potter. Please go ahead. Thank you. Hi, Phil. Hi, Peter. Thanks for taking my question. Just on, you know, basically, the second half profitability, or to clarify, the 60% margins and the 19% fulfillment costs you've given. So that we should start, commencing or, you know, being, being sort of reflected from second half 2024, is that correct? We sort of expect that the second half, with the arrival of the new product, the new season product, and also the positioning of the customer with the marketing spend, et cetera, a lot of that work was being implemented through this first half, and you'll start, and as the cost savings are also being implemented across the first half as well, we'd be expecting to see some growth, small growth, I would assume, in the second half of next year over the previous. And you'll start to see that margin, that margin improvement come through. You'll. The fulfillment costs were effectively running through this year, so you should be achieving that definitely in the, you know, in the second half. And then the cost savings, we've sort of outlined, you'll have those being implemented in the first half, so your second half run rate, you know, be contributing into the second half run rate. So we'd be expecting to be trading profitably in the second half. And when you're looking at that cost base, you also need to take into account a couple of those one-off benefits to this year being the FX gain, et cetera. But that's where we're sort of expecting, you know, some top-line growth in the second half, margin improvement, and cost contributing to be sort of a small profit in the second half. Once again, if you wish to ask a question or a second question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Sam Teeger from Citi. Please go ahead. Hi, Phil. Thanks for the presentation this morning. I just wanna ask two things. Firstly, do you think discounting actually drives more volumes in this category? I guess what surprised me is how weak the sales have been while you've been doing clearance. And then just in terms of the costs overall, we're just hoping you can step us through what the cost of business should be once all the restructuring is complete? I mean, should we take the underlying cost of business of AUD 132 million on slide six, minus the fulfillment costs of AUD 54 million, also on slide six, and then minus another AUD 15 million for the cost out, that gets you to the low 60s. Is that the underlying cost of business after all the restructuring is done? Let me answer the first question. I'll let Peter answer the second question. I think that's the thing in this category. You don't necessarily drive more transactions with promotion, and what has hurt us in July and August is, I've taken a view to clear the product that's residually sitting there, and we've done an excellent job, especially in Australia. We are, you know, well and truly above our targets of stock turns in Australia. And what happens when you discount, you don't actually drive more top-line revenue. That has been a something I've observed. I think I've said it to the market before, since the start of our business in 2006, you know, we have a tight customer base. I also think when you look in Australia, the customer volume increased a little bit. It was down a couple of% from December, but really it's the amount she's spending, and I think that comes from how she's feeling at the moment. And what that says to me is, she's just reduced our spend and to grab what demand we could and use the product that, you know, really, as I said, that return product didn't do the job it wanted. That has really impacted July and August. And that's why as we come back into summer, we'd expect to be getting back towards, you know, what was the top of last year and hitting those numbers through September, October, November, December. I think, does that answer that question, Sam? Yeah. Thank you. I'll pass you to Pete on this last one. Yeah, and just in terms of, you know, looking at the slide, the six where you're trying to extrapolate those numbers through, a few things just to caveat, and then I'll drop into the assumptions and improvements in a second. There is within the FY 23 cost base, AUD 4 million FX benefit, which related to the settling of intercompany accounts, et cetera, that you wouldn't expect to flow into the future year. And there was also about AUD 1.2 million of reversal of prior year LTIPs released into the P&L. So you need to sort of adjust the cost base for those. Then in terms of the 15 million, breaking out fulfillment costs, but just looking at the wages line and the other costs, there's about AUD 8 million of wages and other costs, benefits that will come from the full year impact of those cost out programs. So you wouldn't expect to see them all throughout this year if that's an annualized benefit. But it'd be reasonable to assume you'd get, you know, sort of 50% of that benefit, but the exit run rate will be reflecting that AUD 8 million of cost savings. Within fulfillment, there's a number of things happening within there. We sort of said that there's AUD 7 million worth of, you know, annualized benefits based on the current run rate. Now, that's gonna be impacted by inflation, inflationary pressures, and also, somewhat impacted by volumes as well. Of that AUD 7 million, there was, AUD 2 million was already recognized in this year because of the changes that were put through and, and sort of affected the second half. And then you get an incremental benefit of, of AUD 5 million for the following year. Your next question comes from Sam Haddad from Petra Capital. Please go ahead. Oh, hi, Phil. Hi, Peter. Hey, Sam. Just wanna understand a bit better, just wanna understand a bit better the cash position of the business. You've exited the financial year with AUD 10 million net cash. That excludes proceeds from the sale of Evans, I believe. And can you also just- Sorry, can you repeat that? Sorry, Sam, I didn't grab that. Can you repeat it, please? Yeah, just wanna understand the, the cash position of the business, better. Just as we go through the first half, so you've exited the financial year with a net cash of AUD 10 million. Then you've got sale proceeds to come through, from Evans. Is that correct? Yes. Then can you talk about what you need to buy in terms of seasonal product, in terms of working capital investment as we go into Christmas? Thank you. So you are correct. The cash proceeds from the sale of Evans comes through in this first quarter. And then really, I mean, the cycle, as you know, I mentioned before, we will start to see intake coming in the end of sort of July, you know, beginning of September, we start to see. Sorry, the end of August, beginning of September for the new season. So that product typically lands over that period of time, and then you've got payment terms for when, yeah, payment terms for the payment of those accounts. So generally, what we'll find is, you know, your working capital needs are higher in the, you know, the back end of the first half. And then as you're generating those cash flows, inflows, that's what brings the sort of cash position back down into balance. Your next question comes from Craig Wolford, from MSD Marquis. Please go ahead. Hey, guys, I'm back. Obviously, one question at a time. The other question, just to clarify with your measure of profitability for the second of 2024, is that on a post AASB 16 EBITDA basis? It's on a post, but you could also assume it's there for pre as well. You expect to be profitable on a pre AASB 16 basis? In the second half. In the second half. Okay, great. Thank you. There are no further questions at this time. I will now hand back to Mr. Ryan for closing remarks. Well, thank you all for joining us and for your questions. I'm very excited about what's in front of us. We have a clear path to what is really the way forward for our business and something that I know we can execute on. I thank you for all your support over the last 12 months, and I look forward to catching up with many of you over the next few days. Thank you, everyone. That does conclude our conference for today. Thank you for participating. You may now disconnect.