Good day, and thank you for standing by. Welcome to the Pernod Ricard Asia conference call. Now, I would like to hand the conference over to your speaker today, Julia Massies. Please go ahead. Thank you, operator. Good morning, good afternoon, ladies and gentlemen. I'm very pleased to welcome you to Pernod Ricard Asia's 2021 conference call w e're hosted today by Philippe Guettat, our chairman and CEO for Pernod Ricard Asia, Now m ost of you will have seen the video we posted on our website this morning i n the interest of time, we will turn directly to the Q&A session. Operator, if you can switch to the conference call, please. Yes. As a reminder, if you wish to ask a question, please press star one. Our first question comes from the line of Sanjit Aujla at Credit Suisse. Please go ahead. Sanjit Aujla, your line is now open. As we'll have a response, we move to the next question, coming from the line of Simon Hales, Citi p lease go ahead. Thank you. Hi, Philippe Guettat c an you hear me okay? Hi, Simon. Yes, can hear you. Fabulous. Thank you. A couple of questions I want to maybe start with. First, can you just talk a little bit about how consumption trends are evolving by category and age demographic in China? clearly, doing very well, as you referenced in your presentation, strong recovery post-pandemic. You talked about the success you've been having recently with The Glenlivet in the 25 to 30-year-old age range. I'm just wondering, is scotch really skewing significantly younger in terms of the demographics, that 20 to 30-year-old age range? How is Cognac faring amongst that age group? Perhaps more broadly linked to that, how are your non-Cognac and scotch brands performing in China? What proportion of your sales now are outside of those two core categories for you? That was my first extended question j ust secondly, I wonder if you could just talk more broadly across Asia about how you expect investment and marketing support in the business to evolve over the next two to three years d o you think you'll be investing consistently ahead of sales growth in the region? Thank you, Simon. The first one, consumption trend by demographics and category in China, is pretty long one and lengthy one. As you know, most of the information we have are based on usage and attitude research, which we run once every two years i t's a bit difficult to really look at the impact of COVID, and I don't think this is a major impact o verall, what we can see is that overall, whiskey has a global footprint, a more national footprint- -a high level of penetration but low level of consumption. While China has a high level of consumption, very much in the two highest consumption provinces, which are Guangdong and Fujian. Whiskey is overall potentially recruiting at a younger age, more some of the Gen Z and younger millennials, while Cognac is a bit more of an upgrade, and therefore really targeting more the 25-40. The younger millennials and up to all the overall millennials. We bring all our efforts as well in recruiting Gen Z, especially in nightclubs and clubs. As far as blended malt, blended malt is growing fast. It's more younger drinkers coming in as well. It's not really cannibalizing Cognac i t's enabling the overall footprint of all spirits to grow in China quite nicely overall but y ou know that we have a lot of education role to play and to continue on that. Proportion of sales outside of Cognac whiskey. It's mostly Absolut, which is doing very well w e have double-digit growth, and you can see it's a key growth area for us. Overall, we are seeing, of course, a bit of Malibu, Cîroc, and the rest, but Absolut is a key growth area and priority for us in China. Strong investment plans ahead of volumes, clearly in China in the years to come. We'll continue, as you said, and through all Asia i t's an educational game and capacity ability for us to recruit new drinkers and to educate more consumers to bring them on board of the category. As a market leader, I think probably benefiting the category of imported spirits is Martell, Chivas, Ballantine's, Absolut, and all our brands then will benefit. Thank you, Philippe. Thank you. Our next question comes on the line of Edward Mundy at Jefferies. Please go ahead. Hi, Philippe. Hi, Julia t hanks for the presentation i have a two question, i ve got three please. The first is on some of your medium-term growth aspirations. I think historically, you thought of India as maybe growing low doubles in mid-teens and China high single to low double. Are those still realistic assumptions for the medium term? The second question is around India and potential deregulation of scotch t here's been some recent reports in the newspapers that the basic custom duty could decrease from 150% down to a lower range. If tariffs do come lower, what does that mean for your business? The third question is really around Transform & Accelerate. I think you talked a lot in your earlier presentation around- -good sustainable top and bottom line growth with Transform & Accelerate between FY 2019 and FY 2021 c an you talk about potential opportunities beyond fiscal 2021 to drive sustainable profitable growth and what next for Transform & Accelerate in Asia? Edward, in fact, medium term, clearly what we had said was the high single digit to low double for China and low double for India. I think at this stage, of course, in the long run, outside of COVID periods, I think this remains pretty relative. This is part of the Transform & Accelerate direction. As far as India and the potential deregulations, that's a very long-term opportunity and a massive opportunity for the whole industry, clearly. In fact, today, there is no specific report at this point, so it's a bit of a question mark. I always said that it's going to be nearly 30 years, that I've been at Pernod Ricard, and 30 years I've been hearing about these potential things coming up so p robably we're closer than any time of this as the U.K. and Indian spirit industry group have been engaging with the U.K. and Indian governments. To secure improvements in bilateral trade and spirits, and we are fully supporting that. Overall, clearly as Pernod Ricard, but at the moment, it seems that things are moving in the right direction but, c learly, it's a long-term play that could be transformative but in the long term. Last, I think your question were about opportunities going forward beyond this year a t the moment, we are very much busy in closing this year. And it's a bit too early to think about opportunities beyond, outside of what you just mentioned at the beginning, which is the indication that we give during the strategic plan of Transform & Accelerate that you just emphasized, except that the path is indeed low double digits. Great. Thank you. Thank you. Thank you. We are taking our next question from the line of Olivier Nicolai at Goldman Sachs. Hi, good afternoon, Philippe and Julia. Thank you for your presentation i have got three questions, please j ust a follow-up on the previous questions. You mentioned revival of Scotch and Chivas among the younger cohorts i was just wondering, would you say that about 70% or 80% of Scotch drinkers today in China are below 30 years old? That would be the opposite for Cognac, essentially, where it is above 30, who tend to drink Cognac t hat is the first question. Second question is, how significant is Hainan Duty- Free hub is today? If it continues to grow, obviously, could it have an impact on potentially on mix or margins? Just lastly, since in your background of the presentation, there is some very nice bar with a bottle of Lillet i was just wondering, since one of your competitors is keen to introduce spritz cocktails in Shanghai, do you see a potential for Lillet in the region as well? Thank you. Thank you, Olivier i think my boss will love your third question i 'll finish with this. First, revival of Scotch is not really a revival of Scotch i think it's a very strong performance of Scotch and of Pernod Ricard Scotch brand in a difficult environment post-COVID-19. Overall we have strong double-digits across the board for all our Scotch brands, which is good. In fact, it's really going back to previous trends that we are carrying before COVID-19 periods. At the same time, in terms of age group, I think it's a bit of a stereotype to say 70% of Scotch is below 30 years old. I think Scotch is very spread out as well across the different category and age category. There is strong recruitment below 30, as well, there is quite strong retention of the category which have been educated 10, 15, or 20 years ago. Cognac is really not only an old man drink at all in China i t's completely the opposite. Co gnac is very strong in clubs and in high energy nightclubs, even stronger by far than Scotch. Cognac is strong as well in meal occasions. Meal occasion is probably more middle-aged, 35-45 business people and as well people celebrating, more family a s well in the club, it's really 25-35-year-old crowd, which are consuming Cognac and enjoying it in the nightclub and parties. I would say it's pretty balanced overall, and quite a good representation of all the different class stages. We are very much investing on both our Scotch portfolio and on Martell, clearly in order to recruit Gen Z and the young millennials below 30. Hainan Duty-Free hub, it's a massive opportunity it' s a duty-free opportunity c learly, this is the way we are playing it for Pernod Ricard. In fact, we are really very much constraining ourselves to travelers in order to capture the needs of travelers who are buying at the airport or are traveling to Hainan and buying it at the airport. It's not necessarily directly cannibalizing and impacting domestic business. It's coming in addition i t's mostly taking over and taking part of the business that we have lost in Hong Kong Airport, Singapore Airport, and the borders between Hong Kong and China. Overall, it's quite a good complement, and it's making up for this business loss with Chinese international travelers who are now staying in China. Not a significant negative impact on mix or margin i n fact, even more positive as probably we can imagine that we have better terms than in airport sales outside of China. [Unintelligible] There could be potential in Lillet, and that's in China, but potentially even more in markets like Japan. That's a brand which is starting, that we have started to, at the moment, to activate as part of our specialty portfolio, together with Monkey 47, KI NO BI, and the range Aberlour, and as well, some Redbreast. I think this brand is starting to see some good traction, particularly more in Hong Kong or Singapore, where we are looking at potentially going beyond that and testing it in some other markets in order to see continued traction. Perfect. Thank you very much. Thank you. We are taking our next question from the line of Sanjit Aujla at Credit Suisse. Hi, Philippe Guettat i have two questions from me, please f irst, China. Can you just talk a bit about how you got on post-COVID versus pre-COVID? Sorry. Apologies. I'm not sure Sanjit is on this call. In fact, I haven't heard only China, but the rest of the question got lost in the echo and the cracking of the line. Apologies. Let me try again. Is that clearer at least? Yeah, that's much clearer. Great. Thank you. Great. Okay f irst question, just on the evolution of the channel mix in China, post-COVID versus pre-COVID. Have there been any significant shifts in things like meal occasion, modern on-trade, post-COVID versus pre-COVID, or has the mix kind of normalized back to where it was? My second question is more on geographic mix. How much of your business in China today is outside of Guangdong and Fujian, and how fast is that growing? Third question is actually more on Southeast Asia y ou really didn't talk about that region in your presentation, and I'd just like to get a feel for how that part of your business is performing at the line on stage and what you're seeing with regards to the recovery there. Thank you. Thank you, Sanjit. China evolution of channel mix, post-COVID versus pre-COVID, what can we say? premium prestige channels, which is the traditional off-trade, has rebounded very strongly and t his is a key engine of growth for Cognac during the meal occasion so a very strong rebound across the board. Modern off-trade is the same thing. Overall, I think modern on-trade, which is the high energy bar and nightclub, this is really booming. After the beginning stage where we had a lower number of outlets with a lower footfall and a kind of revenge spending, people spending more on that w hat we have seen is people footfall has been increasing even to a higher level beside COVID, and people continue to spend quite heavily so p ickup triggers, new nightclubs, and high energy bars opening. At the same time as well, what the big surprise of that is, in fact, normally we used to have seasonality with lower traffic and footfall just before Chinese New Year and after Chinese New Year but, a s Chinese people are not traveling, in fact, they have a high level of disposable income t hey continue to go out strongly and compensate the fact that they do not travel by going into the modern on-trade and spending on imported spirits. This channel has been accelerating. Traditional on-trade remains pretty resilient as well, post-COVID. And of course, search on e-commerce from a low base and overall in terms of our business, but growing pretty strongly and with more entrenched type of consumptions that are here to stay and pretty high base and now quite a significant size of our business for premium brands like Chivas Regal, Ballantine's Finest, and Absolut, clearly coming from e-commerce, will be gaining share as you saw in the video. Geographical mix, we do not give numbers by region. As you can see on the back of the expansion of high energy bar and nightclubs, which are nationwide, clearly this enables the recruitment of new drinkers to Pernod Ricard brands throughout the territory, and therefore outside of Guangdong and Fujian, where we still over-index, but to a lesser extent, thanks to the development of modern on-trade as well, e-commerce would enable us to recruit and educate new consumers outside of Guangdong and Fujian. Southeast Asia, very good question. Here, unfortunately, not very good news overall, as the geographies are very strongly impacted by COVID-19, as you know. Most of these markets either are on lockdown or went back on lockdown on the back of a second or third wave. Sanitary situation is pretty difficult in most of the markets as well, in addition to what we have seen in India. On top of that, we have zero tourists going in markets like Thailand, where 25% of the overall economy is reliant on tourists, and as well business travelers who are very important, in markets like Thailand, but as well, the Philippines, Malaysia, and Singapore. We are trending in a high double-digit decline versus A19 in these markets. We're preparing for rebound. We're really clearly regrouping and ensure that we can rebound, but potentially not before next fiscal and probably not before Q2 of next fiscal. Great. Thank you. Thank you. We are taking our next question from the line of Trevor Stirling at Bernstein. Good morning to you t wo questions on the Asia-Pacific strategy. In the China section of the presentation, we saw a lot of Noblige, we saw a lot of Cordon Bleu, of Chanteloup also. How is Maison Martell doing in China? Are you managing to mix these brands versus the market leader at very, very high price points? The second question about Jameson in the region. I saw a picture in the Japanese section. It looks like you're using a high ball indeed there in Japan. I'm just wondering, how are you flexing the global positioning of Jameson in the region and what potential does it have elsewhere in Asia? Thank you, Trevor. Regarding China, lower, clearly in a high range, our priority is Martell Chanteloup XXO, which has been relaunched, and this is clearly where we really want to put the effort and the brand-building capability because we think this is really the sweet spot of up-trading our range from Cordon Bleu and XO to XXO. Of course, we are seeing opportunity with L'Or de Jean Martell, but this will take more time. First, strategy focus on Martell Chanteloup XXO with a lot of activations and an extremely good overall reaction from consumers. We think this is really the sweet spot given the current both political and economic environment. The rest, lower L'Or de Jean Martell will be icing on the cake, clearly. Jameson, very happy to have a question about Jameson in Asia. Overall, we've been making very good progress with Jameson. You were mentioning about Japan. Korea as well is a market where we've been growing. Southeast Asia looks extremely promising overall, clearly with Thailand. As unfortunately, I just mentioned about the difficulty in Southeast Asia before. Thailand, where we see a lot of inroads, a lot of progress among the hipster category, in high energy bar and, as well in all some pretty leading-edge district of Bangkok. Similar line in terms of leading edge and all the other upscale on-trade bar in Manila. We're seeing as well very good progress in Malaysia and Indonesia with Jameson. For the moment, it's more international strategy in terms of activations, focus on taste and mode of serving, highball or Jameson ginger or Jameson lime, which are the key cocktails and that seems to have a very strong appeal among Southeast Asian. Of course, India is a big priority overall in terms of volumes, but that's more a very educated whisky market. Here, doing very good progress. Continuing as well to be seeing in China, but as you know, we have a pretty strong Scotch whisky portfolio, so Jameson in addition to it, and we are there on feeding mode. Thank you very much. Thank you, Trevor. Thank you. We are taking our next question from the line of Chris Pitcher at Redburn. Good morning, [Unintelligible] h ope you're very well t wo questions from me o n China, you mentioned profitable growth. It is fair to characterize the last seven to 10 years as margin compression as you invested in marketing, route to market, and building out the sales force, and that we should now start to see margin expansion in China, maybe not from fiscal 2021, but certainly from fiscal 2022. Secondly, could you update on a couple of your partnerships, and give us some thoughts on Baijiu in China? How is Wuliangye going in Southeast Asia? Is Baijiu a category you are potentially interested in? Thank you. Thank you. Profitable growth, long-term profitable growth in China, that's always been the core of our strategy, and we didn't see and never had any margin compression. Clearly, there's been some rebasing post the crisis, the anti-authenticity campaign, back in 2012, 2013. We had some rebasing our business more towards the VSOPs towards entry that enable us, in fact, we've captured the middle class and the private type of moment of consumption or after that, we've been seeing quite significant growth of volumes, especially from 2016 onwards, and margin at the same time investing. Clearly, as we are in a constrained category for Cognac, everybody's playing with the same type of constraint. Investing to educate and recruit new consumers, but clearly being able at the same time to leverage volume growth, value growth, up-selling, and the development of our margin. Here I'm talking for Martell, but I think that the whole industry is following a similar footsteps. That's about China, w e invest in plenty as well to be able to leverage more whiskey and recruitment, but as well it's always been with profit in mind. Second question about partnership with Wuliangye, with Wuliangye participation, we're starting to sell. It's a bit difficult to crack some of the barriers, regulatory and import license and to obtain that, o verall, things are taking time. We are starting to, I think, sell in Malaysia and I think Cambodia at the same time as well w e are a bit victim of what we were mentioning before, which is no Chinese tourists, no Chinese business traveling to these geographies i t's really leveraging on the Chinese community, local Chinese community, and there is a lot of education to be done. It's starting, and we are happy with the cooperation, but it will take time. Just in terms of China Baijiu opportunity i s that one you see potential areas that you think is interesting or is that something that you're leaving perhaps to your own domestic market? It's always interesting because it's a massive opportunity overall in massive categories, and especially both in volumes and in value, premiumizing, up-trading. There are very few assets for sales or interesting assets m ost of them are government-owned and controlled, and so it's difficult for foreigners to lay their hands into that and w henever there are assets for sales, in fact, most of the time they're not that interesting, and the P are extremely high. The key question would be how to be able to extract value out of that but, n ever say never so, w e'll keep any opportunity, we'll look at them. Thanks very much. Thank you. We're taking our next question from the line of Richard with BNP Paribas Exane. Yeah. Good morning. Thanks t hanks for the question i have two, please. You mentioned in the video a marketing mix analytics tool in Japan and a key digital program in India. Can you talk about the details of these programs and what does it allow you to do that you could not do before? The second question is on the gross margins in the Asia rest of the world segment. They've been relatively stable at 57%-58% in the past five years. What are, in your view, the most important drivers, either up or down, of the gross margin in the next five years or so? Hi, Richard. The first things about the key development programs that have been introduced by Alexandre Ricard during the latest call in first half results c learly here in Japan, what we're doing is to developing a proprietary marketing model mix, which is aimed in fact at improving the efficiency of our marketing spends and being able to allocate better spends according to touchpoint, different brands, and within key geographies, and all that leveraging artificial intelligence. We're doing similar things in India, more in terms of sales force efficiency, allocation of time, and in order to make sure that we fully maximize the opportunity of our sales and the ability to deploy within the different sales outlets. Regarding margin in Asia, so here, I think clearly what we have is a few key drivers. Of course, country mix is quite critical overall to influencing the level of margins, actually, between China and India, we are a bit at the opposite of the two business models of Pernod Ricard here. One, which is more luxury prestige, and the other one which is more premium brand driven. What we're doing here is can clearly continue to work on pricing. As you have seen, we have taken price up from our side in China and in India in the context of very highly inflationary environment as well here, w henever regulation applies and authorizes us, we'll be taking our price up. One, second, trading, really clearly ensuring that we put more focus behind our top-end brands. This is the case in China with Martell and the high range of Martell, Cognac XO. This is as well the case in India with all the emphasis being put behind Blenders Pride and Royal Stag. I wouldn't say the Beefeater, as well the strategic international brands, Chivas, Ballantine's and Absolut. We also have an implementing and rollout throughout Asia, both on imported brand and on locally produced brands, a group already operating guidelines in order to ensure that we can minimize the cost increase and ensure at the same time as well as cost of operations is kept under strict control. Thank you. Thank you w e're taking our next question from the line of Lauren Lieberman at Barclays. Hi, Philippe Guettat and Julia Massies. Thanks very much for the questions, a couple from me. Just following on from one of the earlier questions on India and regulation. If tariffs were reduced in India, would you look to pass those tariff reductions on to pricing for consumers, or would you look to improve your margins in the country? Secondly, in terms of your product mix in China, do you anticipate more of the growth coming from Scotch from a lower base? or do you think the growth between Scotch and Cognac will be relatively similar? Thank you very much. The second one is related to China? Yes, just China, whether you think Scotch and Cognac will grow at a similar pace or whether you think one of those categories will grow faster than the other? Thank you. Regarding India, clearly, it's a bit of a crystal ball i f really we have some future agreement between the U.K. and India and the tariff were reduced, there'd be quite high and strong expectation for price to come down i think that's quite clear, both from the authorities and from consumer, this will be sufficiently advertised. At the same time, the key issue we're facing with our all our strategic international brands, Chivas, Ballantine's, Jameson, which is a bit off the tariff negotiation, is really price availability, price accessibility. I would reckon that, in fact, quite significant portion will go into price in order to boost volumes and be able to educate a wider number of consumers. Just one specific example, for instance, of Karnataka, Bangalore, which is the IT hub, a bottle of Chivas Regal costs EUR 90. At this level of price, it's hardly impossible. To have even some of these younger IT consultants, even if they are making a lot of money to afford a bottle of Chivas regularly, so it's going to be very celebratory type of an occasion. Probably another part will go in terms of educating and therefore recruiting more consumers and expanding distributions and expanding applications and building awareness and consideration. All this with the long term, of course, profitability in mind, but at the beginning, I think we'll have to do the heavy lifting in terms of investments. China, I wish the time would come, and that's up to many sources, but I'm not too sure that we are still there. Let's hope so. In terms of China, I think as you've seen so far, if we look at the past five years, six years in terms of CAGR, Cognac has, both in terms of volume and value, has grown more or less twice as fast as Scotch whisky overall. Cognac is very dynamic. Scotch had been, in fact, it had been less dynamic, but with a decline of blended Scotch or being flattish, which used to be the bulk of the volume and quite sharp increase of Malt Whisky. Moving forward, we are clearly confident that Cognac will continue to grow at hopefully high single-digit numbers between mid single-digit to high single-digit. Overall for Scotch, we should be in similar line but probably with a higher level of dynamism of malt. I think that's a bit difficult to predict. That's where we stand at this stage, given the current dynamism of both categories, Cognac and Malt Whisky. What will happen clearly, we can anticipate at some stage, there could be some supply pressure on both these two categories, and this could trigger as well potential reappraisal, stronger reappraisal of a blended Scotch whisky, where inventory at a higher level and less constrained w e'll see exactly. This could as well come into the equation. I think this is hoping that we'll have a few years of stability, which has not been the case over the past two or three years. Anything else, Olivia? No, I think we're complete. Thank you. Thank you very much. Thank you. Taking our next question from the line of Céline Pannuti from Morgan Stanley. Hello. Thanks for taking my questions. I have three quick ones t he first one is, how does Pernod's wine portfolio fit into the broader strategy in Asia? Secondly, you've talked about the market growth opportunity in whisky. Could you please also give us some color on how the competitive landscape is evolving as others also get behind this opportunity? Finally, a very quick follow-up on Hainan. Once international travel is back, so longer term, not the near term, how would you expect sales in Hainan to evolve? Do you think it was incremental to travel retail elsewhere? or should we expect some shift back to other travel retail zones? Thank you. Thank you, Céline Pannuti. C ould you again come back on the second question about market growth opportunity in competitive-. Yeah, sure. On whisky, you made it clear there's a very big market growth opportunity i was interested in hearing your thoughts about competition. How is the competitive landscape evolving within the category? Céline Pannuti, the scope is Asia? Asia, yes. Specifically, actually, sorry, I should have clarified. I was thinking more China, actually a pologies. Okay. Thank you. About wine, there is a very strong strategic fit within Pernod Ricard portfolio, clearly, especially in Asia. I think we see a long-term opportunity for growth. Of course, in our must-win markets, China and India, we have very strong positions and a very strong fit both in terms of the portfolio, because it is really catering to different moment of consumptions. This is more female-driven overall. This is more meal occasion as well, and at the same time, more playing on the low and on the low-alcohol players. That end as well, quite a strong fit in terms of route to market. As I was saying, we can invest more in modern trade and as well e-commerce and enabling the whole portfolio and the limited edition in restaurant, the whole portfolio to penetrate better all these channels. Very strong strategic fit in the two must-win markets, but as well in Southeast Asia, particularly Thailand, and in the Gulf as well and w e see as well opportunity in Japan overall across the portfolio. Very synergetic and profitable and growing in line with consumers' development of this segment, which I mentioned before. China competitive landscape for whisky, I think market growth opportunity is pretty well played a s I said, we are a market leader overall in terms of Scotch whisky, strong market leader with a strong benefit from a strong advantage of cap compared to our key competitors. We are playing on four different brands, catering to different type of consumer segments, different need states, and different type of occasions. As you know, between Chivas, Ballantine's Finest, Royal Salute, and The Glenlivet. I think, as I've said single malt at the moment is more buoyant and growing at a fast pace as well, benefiting from the halo effect coming from Taiwan and the Taiwanese consumers and travelers t hat's why as well we have seen quite significantly in Taiwan behind The Glenlivet, which is as well benefiting Royal Salute. I think that competitors are as well, some of them gaining share in this, gaining volume penetration in single malt and other are a bit lagging behind. Overall, clearly, we really want to continue to command a strong and significant market lead and continue as well to educate and recruit new consumers and bring them into the category. Hainan evolution, yes, we see clearly Hainan as a potential new market for our brands, even when international travel will resume. It's not going probably to be next year, in fiscal year 2022, that we see a lot of Chinese travelers outside of China i think this will be gradual. This will take time. Once the Chinese travelers are back on international plans, Hainan will be able to recruit or to bring in new people, new travelers who before were not traveling or traveling only within China or visiting only Hong Kong. They will go to Hainan as a destination both to benefit from the beach and as well from the shopping opportunity so w e think that's going to be incremental to the growth, to the Duty-Free business. Potentially taking a bit of share from what the business used to be done at the borders of Hong Kong and Macau p otentially. Thank you. You're welcome. Thank you. We are taking our next question from the line of Andrea Pistacchi at Bank of America. Hi, good evening, Philippe, h i, Julia. A couple questions, please. The first one on the premium spirits business unit that you set up in China y ou talked about you brought some of the brands. I'm just wondering, compared to your expectations when you set up this as a separate business unit a few years ago? how is this progressing? Initially, I think you were focused on 30 cities. Have you moved beyond that yet? Then I think in a question earlier, you were saying that for Cognac, potentially to grow mid to high single digits in China and Scotch, if I understood correctly, similar to that or a bit more. At the same time earlier, you were saying that you continue for China to grow to the high single digit to low double digit. Just want you to square that a little o f course, there's the other smaller international brands that should all grow strongly, please, m y last question, if I may, is a broad question on route to market. In Asia, you're constantly adapting and assessing your route to market. Recently, you made the changes in Korea, I was wondering what we should expect, whether you're happy with your footprint now or whether we should expect any changes to route to market. Thank you. Thank you. Probably the view in the premium business unit in China, it's really very much in line with our expectation, even doing better. We are just looking at the business case that we built five years ago, a few weeks back, we are ahead, even compared to the initial business case so w e're making very good progress, very happy. As you can see, most brands are growing double digits and even faster. Even during COVID times, in fact, they've been clearly, strongly growing both Absolut and Pernod, and the rest of the portfolio of wine. Further expansion, I think now we are in a high number of cities. From the top of my mind, we should be probably close to 50 or 60 cities and growing t hat's something that we need to check and we'll confirm. Nevertheless, I think expansion is growing and we can continue and we are continuing to further experiment and implement. Sorry, does that mean probably my draft copy? Okay, never going to open this back. I think this is quite a benefit to it and a t the same time, we are either doing direct or being a distribution-led thanks to some dedicated wholesalers. I think pretty much in line and extremely happy with the overall development. China, I can really confirm a high single digit to low double overall for the country. On the back of Cognac, which is probably more mid-single to high single, sorry, to high single overall. Mid-single to high single, for Cognac. We see probably around similar lines, despite the fact that we are over-indexing on blended scotch, which is not doing as well as single malt, as I said. Confirming high single digits to low double digits for the whole of China, I think makes sense overall, compared to the market forecast and progress that we can plan. Route to market, Korea. Yes, we, in fact, moved away and gave the distribution of Imperial. Whiskey, Korean or so-called ex-Korean whiskey, or local whiskey, to an external distributor last year, t hings are going pretty well for Pernod Ricard Korea, as in fact, we're growing double digits. As I was saying in the video, that's probably one of the first time, at least for me, being major corp, that I'm talking about growth in Korea, not even talking about double digits. Very happy about the choice because it's really enabled the sales team to focus on modern on-trade and especially off-trade. The fact is that in Korea, modern on-trade is very much impacted by COVID-19 and continuing to be impacted by COVID-19. A lot of trade is growing fantastically well and is clearly compensating, even more than compensating for the decline of modern on-trade. All our leading international brands are up double digits, in particular, Ballantine's, which is making a very strong comeback a s well, you have seen Malibu, for instance, and Absolut, mostly the innovation of Absolut Juice. No further plan for the time being. I think we'll see opportunities depending on the market situations overall, in terms of route to market change in any other geographies of the region. If there are any opportunities to seize or readjustment to be done, clearly in the framework of our fit for purpose organization, we'll be doing that. Thank you. You're welcome. Operator, do we have any other callers? We don't have any other questions on the line. Please continue. Okay. Thank you very much, ladies and gentlemen t hank you very much to Philippe for hosting this call. Please stay safe and enjoy the on-trade wherever you are. Thank you very much. Glad, great talking to you and all the best and hopefully see you soon at some stage face to face. Goodbye. Thanks very much to all. That concludes the conference for today. Thank you for participating. You may all disconnect.