Ladies and gentlemen, welcome to Ubisoft's full year 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question, you will need to press star 11 on your telephone. I will now turn the conference over to Yves Guillemot, Chairman and CEO of Ubisoft. Please go ahead. Your line is open. Welcome everyone, thank you for joining the call today. While the past year was challenging for the industry and for Ubisoft, it was pivotal for the company. We reinforced our strategic focus on our biggest opportunities, initiated a meaningful cost reduction plan, and provided additional development time for our strong pipeline of content. We have implemented significant evolutions throughout our organization over the past 3 years, and we will continue to adapt to the fast-moving environment. The industry's prospects are promising, and Ubisoft has a great opportunity to transform its brand into truly global phenomenon and build an increasingly recurring business. As such, our 2023/2024 lineup will reflect our key strategic pillars with new releases across big brands and long-lasting live games. Before I let Frédéric detail our full year performance, I would like to spend some time on Ubisoft unique organic development model. It relies on a robust iterative design process which proved successful to enter the open world and live services markets. Our commitment has been that it will allow us to successful, successfully enter the free-to-play segment. While mastering free-to-play is hard and it is very important to remain prudent, recent developments are encouraging. We believe these are first visible signs that we are on the right path to bring our brands to significantly larger audiences. One of the recent positive development is the XDefiant closed beta that received strong viewership, community feedback and retention. Similarly, we were very happy to see that the gameplay reveal of The Division Heartland has been well received by players. We also expect Rainbow Six Mobile and The Division Resurgence upcoming tests to illustrate our progress. While it is still early, and again, let's remain prudent, we are clearly making visible iterative progress on which we can build the next steps toward ultimately delivering a breakthrough in this market. I will now let Frédéric detail our full year's performance. Thank you, Yves. Hello everybody. The industry continues to shift towards mega brands and long-lasting titles that can reach players across the world, across platforms and business model. In this context, and considering the challenges Ubisoft and the industry have faced, our fiscal year performance came out in line with our recently revised financial targets. Q4 net bookings stood at EUR 313 million, reflecting the trends observed this year with lower revenues from back-catalog and new releases. Additionally, there was no significant new release this quarter, while Q4 of last year benefited from a strong release slate with Assassin's Creed Valhalla: Dawn of Ragnarök and Rainbow Six Extraction. Last year also included the Game Pass partnership on the Rainbow Six franchise. Fiscal year 2023 net bookings reached EUR 1.7 billion, down 18% year-over-year. Back-catalog net bookings reached EUR 1 billion. Across console and PC, unique active users stood at 133 million this fiscal year, slightly up year-over-year, and MAUs stood at 36 million, slightly down year-over-year. We have provided details on the performance of our key franchises in our press release. I will just highlight the positive momentum of Rainbow Six Siege in a highly competitive environment, the continued engagement records delivered by the Assassin's Creed franchise, as well as the growing net bookings for The Division 2. We continue to create amazing experiences, content and updates for many of our titles years after release. Our teams have been supporting Rainbow Six Siege for 8 years, Far Cry for 6 years, The Crew 2 for 5 years, and both The Division 2 and Anno 1800 for 4 years. Total digital net bookings reached EUR 1.5 billion and represented 85% of our total net bookings. PRI stood at EUR 1 billion, representing 58% of our total net bookings. Within the PRI category, mobile amounted to EUR 543 million. As a reminder, this figure includes the upfront revenue link to the mobile licensing partnership announced last July that was fully booked over the first nine months of the year. Let me now go into the details of our earnings. Starting on slide eight with our PNL. Gross margins stood at 87.5%, broadly stable year-over-year. SG&A were down 6%, reflecting lower marketing expenses that were partially offset by the expected increase in our structural costs. After a strong 18% growth in H1, our structural costs started decreasing with second half down 2% year-on-year and down 7% at constant exchange rates. I will review R&D in the following slide. Non-IFRS operating income stood at minus EUR 500 million, in line with our revised financial targets. As usual, please refer to our press release appendix for the full IFRS to non-IFRS reconciliation. Of note, the non-current operating expense includes a restructuring charge of EUR 21 million incurred in the second half. Turning now to slide 9. PNL R&D stood at EUR 1.4 billion, up significantly year-on-year, mostly reflecting the EUR 500 million of accelerated depreciation. For its part, total cash R&D was up 11% year-on-year. It reflects the investment in our biggest pipeline of products ever to support our upcoming multi-year significant top line growth. After a strong year-on-year growth of +17% in H1, cash R&D growth materially slowed down in H2 to +5%. Looking at our cash flow statement on slide 10, free cash flow stood at minus EUR 426 million versus minus EUR 282 million in fiscal 2022. This mostly reflects the decrease in cash flow from operations, as well as the increase in working capital requirements. Non-IFRS net debt stood at EUR 662 million, and available cash amounts to around EUR 1.5 billion. We expect positive cash flow from operations in fiscal year 2024 and the upcoming years. I would now like to provide an update on the cost reduction plan we announced back in January. Among other things, we are implementing a tight control on hiring, targeted restructurings, the continued convergence of our technologies, and real estate cost reduction initiatives. We are already starting to see the results from the actions we have implemented. Total headcount is down by more than 700 since the end of September 2022. The slowdown in growth for our cash R&D, coupled with the reduction of our structural costs that I mentioned earlier, led to an overall non-variable cost structure of around EUR 1.75 billion in fiscal 23. This is approximately EUR 35 million lower than previously anticipated, of which EUR 25 million thanks to our tight control on recruitment, and for the rest, to favorable exchange rates. Most of this EUR 35 million figure in, is cash and did not materially impact our PNL. We are on the way to deliver at least EUR 200 million of non-variable cost reduction over the next two years, taking the fiscal 23 base of EUR 1.75 billion as a revised reference. Before I turn to forward-looking comments, I will say a few words on our organic iterative-driven business model, which will resonate with Yves' earlier comments. As you know, our model is more talent-intensive and requires time for the iterative design process to fully deliver. Another way to look at it, and that demonstrates in a striking way how it is significantly different than most of our peers, is to look at the level of intangible assets on our respective balance sheets. As you can see on slide 12, we have developed internally a large portfolio of IPs with significantly lower levels of intangible assets. This is an important consideration when comparing operational metrics, but it also comes with material accounting differences. Ubisoft intangibles, mostly made of the amount we spent on R&D, impact our free cash flow figures and adjusted earnings. This is why we believe once our strong investment over the past 4 years will start to pay off, along with our increased focus on our biggest opportunities and cost reduction plan, the true return on capital employed of our organic model will be more visible. Today, we confirm our guidance for fiscal year 2024. We expect strong net booking growth, non-IFRS EBIT of approximately EUR 400 million, and positive cash flow from operations. Our strong top-line growth will be driven by a significantly larger lineup of new releases to support the development of big brands as well as long-lasting live games. Development of this year's lineup is progressing well with big IPs like Assassin's Creed, Avatar, Rainbow Six, and The Division, as well as on long-lasting live service titles like Skull and Bones, The Crew Motorfest and XDefiant. More will be disclosed at our upcoming Forward event. On the free-to-play side, while it is important to remain prudent, recent developments are encouraging. We expect the upcoming pulse points to continue to illustrate our iterative progress with the 6-week closed beta for Rainbow Six Mobile that starts on June 6th, the next tech-testing phase for The Division Resurgence this summer, and a closed beta later this year for The Division Heartland. On the cost side, we expect R&D and SG&A to end up at the high end of the historical range of respectively 35%-40% and 25%-30% of net bookings. Please note that fiscal 24 R&D will see a meaningful increase in performance-based royalties and profitability bonuses, as well as profit sharing. As I said, we are already starting to see the results of these actions. In fiscal 24, we expect our non-variable costs to continue to decrease, with the majority of the impact to be seen in fiscal year 25. We will provide updates on targeted restructuring and the disposal of non-core assets as we reach the relevant milestones. A few fiscal 24 housekeeping items for modeling purposes. The stock-based compensation is expected at around EUR 65 million. The non-IFRS net financial charge is expected at around EUR 45 million, reflecting higher financing costs. The non-IFRS tax rate is expected at between 30% and 35%. The number of diluted shares is expected at around 140 million. Looking at Q1, we expect net bookings of approximately EUR 240 million, reflecting general prudence and the fact that there will be no significant new release. We are now ready to take your questions. Ladies and gentlemen, we now begin the question-and-answer session. As a reminder, if you wish to ask a question, please press star one one on your telephone. We are now taking the first question. Please stand by. The first question from Charles-Louis Planade from Kepler Cheuvreux. Please go ahead. Your line is open. Hello. Good evening. Thank you for taking my questions. I have 4. The first one, can you tell us what explained the quite steep sequential deterioration of the net bookings growth in Q4? Is it the fact that there was fewer recognition of the mobile licensing agreement? I'm just curious to hear what happened in Q4. My second question, we have not heard much on Skull and Bones recently, whereas if I'm not mistaken, the game was slated for the very first part of the year. I'm just curious again to hear if the game has been delayed internally and same question for Assassin's Creed Mirage because we have seen a couple of, you know, press report about about it. Third question, sorry, on XDefiant. Again, if I'm not mistaken, the game was not officially slated for fiscal year 2024 previously. What made you change your mind? Is it the success of the closed beta? When can we expect the game to be released? Finally, also, if we could, you know, give us more details on the weak free cash flow generation this year, especially the very unfavorable working capital outflow, whereas there was no major release during the year end. Also, I see the debt rising. What should we expect in terms of free cash flow generation in fiscal year 2024? Thank you. Thank you, Charles-Louis. On your first question, as we had mentioned earlier, the full upfront fee for the licensing mobile agreement was fully reflected over the first three quarters of the year. Naturally, there was nothing in Q4. As I mentioned, the reason for the reduced Q4 versus last year is that we were coming from a high base last year with the combination of the launch of Dawn of Ragnarök, Rainbow Six Extraction, and the partnership on the Game Pass on the Rainbow Six franchise. On Skull and Bones, we are very happy with the progress the team is making on the game. We are doing lots of play tests and research with external partners. The game is progressing well, and it will be like other games at the Ubisoft Forward. you will hear more then. Yes. We're very pleased with the latest polishing and balancing work that was brought to Skull and Bones. As you've mentioned, we are conducting regular tests, especially through our insider program, and feedback is really good. We'll tell you more soon. On the XDefiant game... You had first a question on Mirage. What we can say that as we said, we will hear more about information on our lineup on June the twelfth during our Ubisoft Forward event. Stay tuned for that. On XDefiant, yes, as we mentioned and we've been very happy with the result of the closed beta. As you mentioned, we need to stay prudent, but the reception from players has been really good, and there's still some work to be done. We now have a good enough visibility indeed to announce that XDefiant will be released in fiscal 24. On the cash side, yes, naturally, as we had a small slate of new releases, we did consume cash this year as expected. The working capital requirements increase is primarily related to increasing working capital from taxes, and notably due to the fact that we, of course, recognized tax incomes this year with no cash in, as well as a reduction in other liabilities, and notably a reduction in provisions of bonuses, as well as profit sharing among other elements. In terms of what we can expect for fiscal 2024, we will have a positive cash flow for operations on the back of a very powerful lineup. That will state change, of course, the level of cash in together with the first impact from our cost reduction program. So we are looking at cash-positive cash flow for operations for fiscal 2024 and beyond. As you have noted, we are now relying on the stable EUR 1.5 billion of cash and cash equivalent. So that stayed stable over the last two months without any new financing. Thank you. Just to clarify on XDefiant, you said we have now enough visibility to confirm the game for fiscal year 2024. Yes, indeed. Okay. Thank you very much. Thank you for your question. We are now taking the next question. Please stand by. The next question from Omar Sheikh from Morgan Stanley. Please go ahead. Yeah, good evening, everyone. I've just got a couple of questions if I could, please. First of all, I wonder if you could just talk about the comment you made about the Assassin's Creed headcount within the total development staff. You said you're gonna increase the headcount allocated to the franchise by 40% over the coming years. Could you talk about the extent to which that's gonna be a reallocation from other games? Or is that gonna entail the total headcount going up? Then if you could maybe just sort of put that in the context of your broader plans about the portfolio going forward. Mm-hmm. Are there any plans to further streamline the number of franchises that you support after the seven or so franchises that you chose to end in the last 18 months? That's the first question. Secondly, I just wanna just clarify, Frédéric, if I could, on the cost reduction. You said the majority of the cost savings would be, the PNL cost savings would come through in 2025. Just wanna clarify that point or confirm that point. What will drive the cost reductions in 2024? Is that gonna be, more kind of, you know, focus on minimizing headcount increases? Is there anything structural in terms of disposals that you're assuming there? Finally, I guess related to that, I'm not sure you gave some guidance on cash R&D in 2024, fiscal 2024. It'd be helpful if you could give us some color there too. Thanks very much. Thank you very much. Yes, Assassin's Creed, the resources will come from other games. It's a reallocation of resources to go to Assassin's Creed to grow the brand big time. It's really in our focus to put more emphasis on our own brand. Yes, we continue as well and together with this focus on our biggest growth opportunities to accelerate our effort also on the long-lasting live services. Notably, not only, but notably on our biggest brands. On the cost savings, yes, I mentioned that we'll have an impact of cost reduction in fiscal 24 with an even bigger impact in fiscal 25 and even more so in fiscal 26. What we what we can say that we will pursue what we've kicked off with a good momentum since the beginning of January. That will be a combination of a very strict recruitment control, while making sure of course, that we continue filling in critical jobs, as well as making sure our production are well, well-staffed. And we'll continue hiring top talents. We will pursue some targeted restructuring like we started doing a few months ago. And we will proceed with the sale of non-core assets, but we'll share with you more information when we pass specific milestones. In terms of guidance on cash R&D, total cash R&D will go up in fiscal 2024 versus fiscal 2023 on the back of a stronger performance-based royalties and stronger profitability bonuses and profit sharing. When you exclude these variable elements, the fixed part of our cash R&D will go down. In total, in fiscal 2024, we can now expect our total fixed cost base to go down, including structure cost as well. Okay, thank you. If I may just follow up on Assassin's Creed. Could you give us a broader idea of what proportion of your development headcount is currently involved with that franchise? Today we have around 2,000 talents working on the franchise. Perfect. Thanks a lot. You're welcome. Thank you. We are taking the next question. Please stand by. The next question from Nicolas Dempsey for Barclays. Please go ahead. Yeah, good evening, guys. I've got three. First of all, regarding the net bookings for fourth quarter 2023, did those come in lower than you had hoped they would when you gave us an update in January? Or were you always understanding internally that more than 10% decline would be an 18% decline? And if it was worse, what caused that to be weaker? Second question. You've been helpful there talking about cash R&D. Should we therefore expect that gap between P&L R&D and cash R&D to be back to sort of something like a historical level closer to FY 2022, which was EUR 400 million-ish? Should we be thinking about that kind of gap or a notably smaller gap in FY 2024? The third question, EUR 240 million in Q1, you said you're being prudent there. I understand that there are no new releases and that you don't have the benefit of some large ones for the last few quarters. I don't think you've done a number that low since one of the quarters in FY 18. How much prudence are you taking here? Why would it be lower than you've achieved for really quite a long time? Yes, thank you, Nick. On your first question, yes, our net booking came in line with expectations and as well as our EBIT for the full year as part of our revised guidance mentioned in January. In terms of the gap between PNL and cash R&D in fiscal 2024, it's planned to be material on the back of a big lineup to be delivered as well as for the outer years. On the medium to longer term, we should expect the gap to reduce notably due to the cost reduction program. On the Q1, yes, we are reflecting a general prudence in our back catalog that will be the biggest part of Q1. is about consistent with back catalog rhythm we've seen in Q4 of fiscal 2023. Okay. Thank you. Thank you. Thank you for your question. We are now taking the next question. The next question from Nicolas Langlet from BNP Paribas Exane. Please go ahead. Your line is open. Yeah. Hello. Hello, everyone. I've got three questions, please. The first one on the free-to-play initiative in full year 2024, are you able to share kind of revenue and adjusted EBIT contribution you expect from PC console and mobile free-to-play initiative? I remember in the past you were cautious on the first year profit generation for those games. Is it still the case for full year 2024? Second question, taking into account the market conditions, the pipeline and your focus on non-variable costs, what is the midterm ambition in terms of adjusted EBIT margin? Do you see a potential to go beyond the previous peak at 22%? Finally, you mentioned the generative AI and the work you have done already. Curious to get your view on whether you think it could be a lever for margin or better ROI in the mid to long term. You plan to mostly reinvest the gain, you can generate with this tool. Thank you. Thank you, Nicolas. On your first question, yes, considering this is the first year of first fiscal year release, we of course want to stay prudent in terms of profit contribution for our free-to-play game. We expect a limited contribution for this first fiscal year. As we said, we are very happy with the progress, but of course, we need to stay prudent on that point. On the second question, yes, on the back of a very strong lineup for next year's, we expect significant top line growth as well as significant EBIT growth. Yes, we plan to progressively get back to around the levels where we were over the last years. On the LLM, in fact, we think it will really improve our games. We expect creativity to grow a lot using those models. It will also improve the workflow. It will give more time for our teams to improve the quality of our games. It will also give an opportunity for players to also have more access of those games to actually be part of the creation of events and content in those games. There's a lot coming out, coming there. We also have a lot of data in the company from all our brands that we will be able to take advantage of, to create, you know, easily lots of content. it's really good, and we have been working a lot on that in the last few years. it will be a good growth coming from that. Okay. Yves, when do you think we will see the first real benefits of those tools? Is it something in two-three years, or it's more of a medium-term horizon? We see benefits already every day from the people using those systems to actually improve the their workflow. In the games it will take a little bit more time. In the creation of code, in there are lots of places where it's already beneficial. Okay. Okay, thank you very much. Thank you for your question. We are now taking the next question. Please stand by. The next question from Mike Hickey from The Benchmark Company. Please go ahead. Your line is open. Hello, Yves, Frédéric. Good evening, guys. Thank you for taking my questions here. First question, you sort of touched on this, but just looking at your pipeline here in your 2024 guide, just curious your confidence level here that you can deliver five premium games this year, including 1 that's still unannounced, just given the challenges the industry has had in terms of delivering content as planned. Curious how many of these 5 premium games are planned for 4Q? I realize there's none in the 1Q. Obviously, 4Q sort of elevates the perceived execution risk on those premium games. Second question, guessing, Frédéric, you're not gonna give out unit expectations, but just curious qualitatively if you can rank your five premium games this year in terms of their contribution to 2024 on sales. Third question, from me from us, on XDefiant, I think it's common practice to pay influencers to play the beta game. Curious if in fact you did pay influencers to play the game and what you view as a positive reception to that game. Thanks, guys. Thank you. We have been giving lots of time already to our games and to make sure they could be polished and well of good quality. We have good visibility on when they can come and with the quality they can come. On the XDefiant game. In fact, the way we did the beta is we gave access to it, and we gave a chance for people to also join in with the Twitch Drops, and that really helped to drive a lot of people in the game. We didn't do much of recruitment. It came really naturally. Yeah, Mike, on your question around the timing of release dates. We haven't said anything yet, but, you know, we have more information during the Ubisoft Forward event, so please stay tuned until June 12th. On our premium games, yeah, we said that we're coming on with big franchises. We have, of course, stronger expectations from Avatar, from Assassin's Creed Mirage, notably, and from the game that is still to be announced. Thanks, guys. Are you planning a Just Dance this year? Just Dance 23? Yeah. As usual, we have Just Dance that is now part of a live model. Yes, you'll have another great content for Just Dance this year. Yes, we changed- All right. Thank you two. Last year, where now the game will come. We'll have updates, regularly with new songs. Nice. Thanks, guys. Good luck. Thank you. Thank you, Mike. Thank you for your question. We are now taking the next question. The next question from Thomas Singlehurst from Citi. Please go ahead. Your line is open. Yeah. Good evening. It's Tom here from Citi. Thanks for taking the questions. Two, if it's okay. I am conscious that your guidance for revenue is qualitative on purpose. You know, the strong growth is exactly that. Consensus expectations are for revenue in 2024 to get back towards, if not slightly above, sort of peak levels for it to be effectively your best ever year. Are you still comfortable with that, or does the lower base from 2023 mean we should be less aggressive in absolute terms? That was the first question. The second question was coming back to generative AI. It's great that you've outlined how you're using it, which, you know, as I say, seems fairly extensive. I'm just interested whether you think there is a change to the competitive landscape as a consequence of these tools, or do you think the data you have is enough of a sort of barrier to entry for, you know, to make sure that you can maintain a competitive advantage in producing high quality content? Thank you. Thank you. Yeah, Tom, on your first question, I can only reiterate what I said. We expect a strong growth. We have a very powerful lineup. As you know, in terms of comfort, we have already exceeded EUR 400 million in EBIT three times in the recent past. We think that with the lineup that we have ahead of us, yes, we have a good level of comfort. Generative AI, I think what we can't say about how much it will increase competition and diminish barriers to entry. What we can say is that what we have with data and the know-how we have with LaForge on working on those models and making sure we can create bots and other things is something that will help us to improve the experience for players. This will be able to drive lots of revenue. As you've mentioned, what is very important, beyond the fact that we've been working on this model for quite a while, is that we have a huge set of data that we use to train our models. That's very clear. Thank you. Thank you. Thank you for your question. We are now taking the next question. Please stand by. The next question from Eric Sheridan from Goldman Sachs. Please go ahead. Your line open. Thank you so much for taking the question. Maybe just an update on what you're seeing broadly in terms of global consumer habits with respect to gaming. Over the last couple quarters, we've talked a lot about different varying levels of performance between large IPs and small IPs and more established IPs and emerging IPs. Wanted to know if we get a little bit sense of what you're seeing across your portfolio. The second or follow-up question would be that with so much IP coming to market in the next 12-18 months, how do you think about the challenges or the opportunities of launching IPs into that broader consumer landscape? Thanks so much. What we see is, live games continue to perform extremely well. When you are able to install a game, in this market, you have the possibility to generate revenue from it, on the long run with a good, gross margin and EBIT. On the other side, you have big brands that are also generating more revenue. We, we are pushing on both sides, increasing the visibility and access to our big brands, in having the possibility for Assassin's Creed and Rainbow Six and The Division to be also on mobile and have access to lots of territories where they were not as big. That will grow their revenue and if the those mobile versions do very well, they will also help to generate revenue on a regular basis in the years to come. Maybe if I could just ask one follow-up. Would there be an element you could give us in the sense of how marketing needs to be allocated if the consumer environment's volatile, to think about what marketing inputs need to be aligned against launching IPs in this kind of environment? Thank you. In fact, on the mobile games, it's very much pro-performance marketing, so it's, you have to put a certain amount at launch, but you can accompany the growth of the game quite a lot if there's a good retention and monetization. We will actually increase marketing if we see that there's a good return on investment. That's why we're taking the time to really optimize the KPIs, ahead of launch so that we can size marketing the right way. Thank you so much. You're welcome. Thank you for your question. We are now taking the next question. The next question from Adrien de Saint Hilaire from Bank of America. Please go ahead. Your line is open. Thank you very much. Good evening, everyone. Hopefully you can hear these questions. First of all, Frédéric, could you please perhaps recap how much the contribution was from the mobile partnership deal, both in revenue and EBIT for fiscal 23? Well, do you have any other conversations with any other stakeholder around signing other licensing partnership? That's the first topic. Second topic on sticking with partnership, where do we stand with Tencent? Have they actually increased their stake in Ubisoft? Are there any projects going on with them? Maybe thirdly, sorry to press you on the guidance point, is there any range perhaps that you could provide whether we're in a single digit range or whether we're in the double digit range? That could be a helpful start. Thank you. Hello, Adrien. On the mobile licensing agreement, as we said, it was a very meaningful partnership on one of our biggest brand. We didn't give the precise terms. What you can see from our historical trends on mobile is that the increase has mostly come from this partnership. We also had the contribution of the partnership with Netflix, but to a much smaller extent. In terms of partnership, you know, we have regular partnerships with a number of players. It's been the case for quite a while. We've been able to partner with big entertainment players, big tech platform or video game players. There is more and more need for content from these partners and that's why we're happy to continue value the strength of our high quality of AAA IPs, and that will continue in the future. On Tencent, we continue to have a good business relationship with them and we are working on different projects together that we feel are going to be very profitable for the company. So, it's a good relationship that continues to grow and be very successful. In terms of stakes, as per the AMF statement from end of January, they had 9.2% of the voting rights and 9.99% of the share capital. In terms of the net booking growth, I, as I said, I can only reiterate what I said. We expect a strong growth on the back of a very powerful lineup. We'll be happy to show more of the strengths and the color of the lineup during the Forward event. Thank you very much. You're welcome. Thank you for your question. There are no further question. I will now hand back the conference to the management for closing remarks. Thank you very much for all your questions today, and have a good morning or good afternoon. Thank you. That conclude the conference for today. Thank you for participating. You may all disconnect.