1H 2024 Financial Results Briefing

Good morning ladies and gentlemen, friends from the media, analysts, bankers, investors and CDL colleagues. My name is Belinda and I'm the head of investor relations and corporate communications at CDL. On behalf of the management, a very warm welcome to CDL's briefing on its unaudited first half 2024 financial results. Thank you for joining us this morning. We have quite a big group this morning right here at the M Hotel Singapore, as well as we have a large group that is joining us on live webcast this morning. Now, for today's briefing, in line with CDL's commitment to environmental sustainability, we encourage you to scan the QR code that will be screened up here and to download the following documents that were already uploaded on DSGX website this morning. They include a copy of the detailed financial statement, a press release summarizing the

key highlights of our performance, a presentation deck that the group will be going through very shortly, and for our guests that are joining us live on webcast, you would similarly be able to download these documents on our website on the tab in front of you. I would like to introduce you to the CDR Management Panel in the centre. We have Mr. Quack Ling-Bing, our executive chairman, followed by our ex-co-members, Mr. Sherman Quack, our group CEO, Mr. Quack Aixing, our group chief operating officer, Mr. Chiang Yang-Hong, our group general manager, and Ms. Yong-Yin Ming, our group financial officer, chief financial officer. The format of today's briefing will be in two parts. We will kick off with a presentation of some of the key highlights and then followed by a Q&A opportunity. Now without further ado, I would like to invite Mr. Sherman Quack, CDL Group CEO, to kick start the presentations. Mr. Quack, please. You know what, maybe I might have to use this because I have to stand near the mic for the

computers all the way there. Anyway, thank you. Today, all of you quite formal give me some applause as I come up to the stage as well, though as I'll take you through, we have faced quite a lot of sector headwinds, so I know we didn't exactly release the prettiest set of results, but we have a lot of stuff in the works and we intend I think to further accelerate things as we move forward. So as you can see in the first half of 2024 I mean our revenues down primarily because the same period last year, corresponding period last Last year we had this Piermon Grand, our EC project in Pongong that TOPed in January last year. And as you all know, when EC projects TOP, that's when you recognize the full revenue and profit. And that made it quite hard for us to compare because there was 1 billion of revenue that came in just from Piermon Grand last year. But the truth of the matter is that our profitability has been quite severely impacted

I think by the higher financing costs. So as long as this interest rate environment remains high, it certainly put a lot of pressure on our business. I mean, as you all would have noticed, over the last couple of years, we've been investing quite heavily in recurring income assets on the multifamily side, on the student accommodation side. And many of them are doing very well, but in this high interest rate environment, it's actually quite difficult, I think, to even cover the financing costs. But having said that, I mean, I think we are generally of the view that hopefully next month we will see the first signs of easing as the interest rates hopefully start to taper down and that should lift a lot of pressure of our business. The other thing that impacted us was we had certain projects, not all, but certain projects that are also delayed on the construction side. So in terms of sales value, I mean, over the last few years, we've actually done well, I would say.

But as you know, in Singapore especially, you recognize based on the progress of construction, right, of completion and that. And so once construction is delayed, you know, it's a timing of profit recognition. So unfortunately, with some delays that we faced, you know, over the last 12 months, we didn't recognize as much profit as we thought we're going to in the first half of this year. But as I said the good news is that all that's locked in so that will come in in the next few quarters. In terms of our you know metrics they are what they are. We our share price hasn't exactly performed too well and obviously on 31st May we suffered from the deletion from the MSCI Singapore index which certainly was a blow to us. It was something we were keen to avoid but it's happened and And doesn't mean we can't get back into the index again at some stage, but we will certainly keep powering ahead. Our, for lack of a better term, RRNAV, which revalues all of our fair values, all of our

investment properties and hotels, has ticked up slightly to 1949. So we are certainly at a current share price trading at a very, very deep discount, which which is also why we did some shared buybacks over the last couple of months, although we kind of just put it on hold for the time being because obviously our gearing has gone up, so we're just assessing where we are right now. We can restart it again at some point in the future, but we really do need the interest rate environment to be a little bit more favorable before we proceed forward. And for this year, I think out of prudence, we are so-called declaring a two-cents dividend compared to last year's 4 cents for the first half, but doesn't mean again, we can't do a bigger dividend at year end, right? I think we just wanna see how things pan out and it is a very uncertain environment and costs are high. I think all of you know that in the development side of things, not just in Singapore, but globally, costs have gone up substantially from both labor costs and materials

and that is stabilizing, but really hasn't tapered down. So has put a lot of pressure on the development side of the business too. I won't go into this in very deep detail because I have more slides later on in this day that talk about it, but basically for last year we sold about 588 units with total sales value of 1.2 billion, which sorry for the first half of this year 588 units with a total sales value of 1.2 billion, which I think was a good showing. Obviously much of that sales came from Lumina Grand, our EC that we launched in Bukit Batok West Avenue and we're really glad to see that the take-up has been very strong for that. The truth is, you know, in the first half of this year, Singapore, the whole Singapore market saw a lot lower number of new unit launches, right? I think for last year, first half of 2023, total number of new units launches about 3400,

but whereas this year is about 2400, right, across the whole market. So it's about 30% less than last year. That coupled with obviously in a high interest rate environment, it would cause some buyer caution as well. Therefore resulted, I think, in overall market being weaker than the same period last year. So I think we've seen the numbers already from the URA residential index. I mean, this year, I think we are, for the first half of this year, for the whole market, for new launches were just under 2,000 units. Versus last year for the full year, was about 6,400 units. So this year we are likely, we forecast, I think the general consensus view is that we'll probably end up around 5,000 to 6,000 units for the full year, for the full market. But it is what it is. Prices so far for this year for the Singapore Resi market, according to the URA index has gone up

about 2.3%. And so we are also, you know, general consensus is forecasting that the price increase for the full year will be about two and a half to three and a half thereabouts. So certainly down from I think for the full year of 2023, the price index, the prices were up about 6.8%. So I think after three years of very very strong price increases, I think this year we're starting to see things moderate quite a bit. So aside from Lumina Grand where we've done really well since launching it in January, we have also strengthened our development pipeline locally. We have participated in this and been awarded the design road tender. I'll go more into that later as well as obviously there's this Durong Lake District mega tender that's not been awarded yet and then recently We have seen news for this on-block sale of Delphi where we decided to acquire it back, which makes sense since we own the two plots next to it, which is Claymore Connect, the

retail mall as well as Orchard Hotel. In China, the bulk of our residential inventory that's been launched has been sold. We do have a new project in Suo Toh that we acquired last year so that we are looking to launch it beginning of next year. And then in Australia, we have two projects in Brisbane, but both are also substantially sold. On the hotel side, I think we've all seen very, very positive momentum. Last year was extremely strong year for hotels, same for the first half of this year. No doubt there are some headwinds building up again for the hotel sector, but so far, I think it's been very encouraging for us. You can see red power is up 3 percent, occupancy up almost 2 percentage points, and ARR has ticked up slightly against the first half of last year. And we had certain regions like Australasia that outperformed and achieved a 30 percent increase in red power, but that was mainly driven by the acquisition of the Softel Brisbane

Central, 416 rooms there. And then, of course, we also, in the recent months, announced the acquisition of the Hilton in Paris. On the commercial side, things are still doing pretty well. I think there may be some headwinds ahead, but I think there's still limited supply on the office side, so that helps to keep things in check. So far, I think for first half of this year, for the whole Singapore office market, rents and occupancy are pretty much stable. Same for the retail sector in Singapore as well, pretty much stable. And our portfolio has still held up and been resilient. Same thing in the UK, despite the UK facing more challenges, not as bad as the US but still more challenges because of work from home and all kinds of other stuff. But I think our portfolio in the UK is still doing well. And then obviously that's the living sector which has been a big focus for us in the last few years.

We continue to expand with a couple more acquisitions. I'll talk more about those later and same with our PBSA portfolio. And then on fund management side, I have a slide on that. This one just shows you what our portfolio is like on our books, $24 billion if we fair-valued everything, the IPs and hotels. Our asset base is about $33 billion right now. So we definitely have to push ahead and accelerate our capital recycling, I think, to really start to monetize more of the and unlock more value from latent value from our existing portfolio and the breakdown geographically in business segment is shown there. Okay back to our GTE strategy growth enhancement transformation on the growth side we've continued to deploy capital not as fast as last year I think we've been slowing the pace down last year we deployed 2.4 billion this year so far we deployed 1.1 doesn't include a Delphi orchard because the tender the acquisition has not gone through yet.

It's been awarded but has not gone through yet. It's pending sale completion but so far I think the big ones here are the Zion Road where we partnered with Mid Street Fudosan 50-50 to take down Passaway Zion Road. This is that big greenfield part of that big greenfield plot that's next to Great World City. Great World. More so really pleased with that and that will you know be a strong project for us. We did three relatively smaller multifamily acquisitions in Japan, you know, on very good locations. So obviously the prime one there is Akasaka, one of the three A's in Japan's Central Five Wards that was completed that properly was physically completed last year. So and then the other two, one is in Saitama, which is part of Greater Tokyo. and then the other is Namba in Osaka. The other two were completed this year. So I think it's in line with our strategy that we still try to go for a newer portfolio. So now we have in Japan 40 multifamily assets,

38 already operational two, you know, that will physically complete this year. And so we have a very new portfolio with the exclusion of maybe excluding two or three older properties. whole portfolio's average age is like two years or less. Very, very new portfolio, so you have less maintenance issues and it's a very strong competitive product. And then in the UK we acquired a BTR, a bill to rent, this yard house which is in White City, and it's a forward-funded mechanism and then of course the hotels I mentioned earlier. And then on the right hand side in the pie chart you can see the breakdown of what we've acquired in terms of a buy by asset class. Singh-Rezi launched pipeline. As mentioned earlier, really glad that we have done well on Lumina Grand, 512 unit project. Zion Road will yield over 700 units, and that's coming along nicely on the design side. We're working very closely with Mitsui Fudosan.

We have our Newport residences that's been ready for launch since mid of last year. We're still waiting to see how things pan out before we launch it. This one obviously has the much talked about super penthouse that I worked with the architects, the personally designed as well. So 13,000 square foot on a single floor freehold at the top of this building. But we're waiting to see how things pan out before we launch this project. The good thing is there's no ABSD timeline here. There is QC, but it's all the way down many years from now. So we had the so-called fortune of being able to wait, But we are continuing to construct so so TOP wise there's no issue there Obviously coming up in the next couple of months. We have two very exciting projects one is Norwood Grand It's a project up in Woodlands the last Private residential launch in Woodlands was about 12 years ago. I think it's called

or part of Rosewood or something like that. So it's really, I think it's gonna be very, very strong pent up demand because there's not been any new launch in 12 years. And then we have also Union Square Residences. I know we put in the generic picture showing you the three plots of land, but we have done a really outstanding design and we wanted to save the visuals for when we launch it. We have also done up the show flat already, the sales gallery and show flats already. We actually took over the former Canning Hill Pier show flat. We have revamped it totally. So you won't even recognize it. It's a two-story show flat. So even the staircase, everything has been shifted. I mean, I would say to date, it's probably one of the best projects that we've ever done. We've lifted the bar even more. So can't wait to host many of you at Union Square when we launch it for sale. We will unveil, as I said, more exciting visuals then. but it's a very, very stunning, striking architecture with two tall towers, one for residential, one for office,

and of course, a lot of co-living and retail, spread across some of the heritage buildings as well. And then this tripartite, this three-way consortium of which we are one-third of, launched this cassia, so-called in July last month, and that's 56% sold. And then lastly, there's this launch one in Topayo, which will be only launching next year, first half next year. That's also going to be, I think, a very spectacular project. The last launch in Topayo was by EV, it's called Gem Residences, and that was eight years ago. So the last private condo launch in Topayo was eight years ago, so we think this is going to have very strong demand. We are 50% of the JV together with Fraser's and Secretary House Japanese developer. So that will have us around 777 units. So that's for next year. Okay, this is obviously the JLD, as we call it for short, the Jerome Lake District, the

JLD master developer site. Our consortium was the only bidder, but we haven't been awarded yet, so we're still waiting for news. I would say we bid very cautiously on this, so if we get awarded, I would say that it will be a nice entry point for all of us. Max Labo GFA, 365,000 square meters, so that's just shy of 4 million square feet and is split across 40% office, 40% RASI, which is about 1,700 units, and the other 20% will be for hospitality, retail, and other uses across. So it's a very, very beautiful site and anchored by two MRT stations on both ends of the plot, right? One is existing, the Zhong East huge interchange station and the future Cross Island GLD station. These are the five developers that went in together and I think we have formed one of the strongest consortiums ever, so we should be able to realize a very stunning vision for this GLD site if we are successfully awarded it.

investments, yes, you know, earlier in the year, beginning of the year, I threw out a 1 billion number. We are quite far from that. The truth is, you know, there are several big divestments I have underway, both in Singapore as well as overseas, okay, but those are requiring time to negotiate and those aren't going to happen so quickly. So what you see here are, for lack of a better term, the lower hanging fruit. We sold things like our freehold strata industrial units at CityLink and CityTech. So those two are fully sold out. It was actually snapped up very fast, so I guess freehold industrial units are very sought after. Then there's Fortune Center, which also has seen strong take up. Then there's Sunshine and the venue shops and car parks is basically the remnants of our project last time, the venue at Poit both don't pass here. So that we're also pushing along. So far, I mean, you know, we have eked out 172 million. So quite far short of it, but we do need some of the bigger divestments

take place before we can hit that 1B number. I don't know if they can happen by this year. They may trickle into next year. But the truth is, but the, you know, I think the fact of the matter is they are under underway and hopefully, I hope they materialize sooner rather than later. So let's see how things go. Onto enhancement. These are just some of the AEI's that we completed. I think last couple of years while Pukit has been under a lot of pressure and you know, due to COVID and all that, I mean, visitors, visitor arrivals were down. We took the opportunity to really revamp our very aged shopping mall. So we did a stunning revamp of the whole mall. I was just there recently together with the board And we're really pleased with what has been done there. So extensive AI covering more than 200,000 square meters. We spent about 37 million sing, about a billion Thai baht. And so far, I think we're seeing very strong comeback for this mall as well. And foreign visitor, visitorship is also strengthening.

Likewise, we also spent a similar amount to do up the hotel there. It's a 418-room hotel and all works are now done. It's split between two wings. So we anticipate that this will start to strongly boost our investment properties segment. And then same thing in Singapore City Square Mall. I think the mall has done well for us over the years but has also aged. So we have done a very big 50 million revamp of the mall. Phase one is already completed, including the basement levels. And now we are pushing on to phase two. I mean, there's some of the parts of the basement levels that still need to be done up further, but more or less completed phase one and phase two is ongoing at the moment. So I think we are very confident that once the AEI is done, it will be a very fresh, you know, new look for City Square more. And many of you remember for Republic Plaza Tower One, we spent in excess of 50 million and did up the whole Tower One, which so far I think over the years, we re-opened, so

So we relaunched Tower 1 in 2019 and gained a lot of compliments for what we've done to really brighten up and open up the space, the common areas and do up many of the floors. So likewise I think it's time now for us to do Republic Plaza Tower 2, the smaller tower. So it's a small amount we're spending but we are going to be changing the whole look of the tower as well. And it's going to look very nice after we're done by the middle of next year. As mentioned earlier, I think Union Square is a mixed-use development we're very, very excited about. I mean, we bought the neighboring plot, this central square from FIEs, hospitality trust, and then amalgamated with the two sites that we owned. And so we were very privileged to apply for and get a 67 percent GFA uplift under the Strategic Development Center scheme. And so now this is the breakdown that you see of the ResE, the office, the retail, on the coal living, and we will be doing a very stunning project across this site.

And I think that should revitalize that whole area as well, which traditionally has suffered from a bit of a lack of foot traffic. And I will share more details on that in future briefings. But for, you know, and there's a lot of good news. For the office, for this development, we've also been able to secure some heavyweight tenants in advance, so things are going really, really well. Newport Plaza, as mentioned earlier, we got a GFA uplift, 25% under the CBD incentive scheme, but we are holding back from launching the Resy, but we are continuing with the construction, so we are at the superstructure stage now, and we continue to build. On the hotel side, we are continuing, I think, to convert more of our trophy properties into the M Social brand, which is a brand that has seen much success within our stable of and portfolios. So in London for Millennium Knightsbridge, which enjoys a very prime location on Sloane Street, we are refurbishing it to a tune of 28 million Singh. And this should

be completed by next year. And for New York, this is the downtown in New York, the one that's actually near the World Trade Center, the former World Trade Center. And this we are rebranding it and repositioning it to the M Social downtown New York. And then obviously there's a new build in Sunnyvale, which is, it was formerly an old hotel. We tore it down, we have built a multi-family where the former hotel sits, and then on another part of the site, we're building a new hotel there. So that was anticipated to be the M Social in Sunnyvale. Sustainability leadership, I'm not gonna cover this slide too much, but I think we're very grateful to still be one of the leading companies in the world on the sustainability front, much credit, I think, to my predecessors before me, who started this whole push to make us greener since 1995. And I think, you know, for close to three decades, we've just been pushing ahead with

this mission in mind. And also on the governance and transparency side, recently you would have seen we ranked second as well, our highest ranking to date since this index was started. And we have obtained greater than 9 billion of sustainable financing since 2017. Last part is transformation. As mentioned earlier, our shares were very undervalued over the last few months and even more undervalued now. We have purchased back about 13.5 million shares to a tune of about 18 million. And we continue to watch the market to see when we have opportunities. But as mentioned earlier, I think with the interest rate being so high, I think we do have to put this on pause for the time being, but on the right side you can that's how rational for why we really should be buying shares and old companies. It's one of the best investments and in the business that we should know best. So you know we are strongly I think we're strongly in favor of what we have done on the share buyback side. Fund management side as I

said you know right now I think we have built a very sizable portfolio on the global living sector side as well as we had those three commercial properties in the UK. And you know we hope to be able to unlock the value and monetize it at some stage. You know having all these assets gives us the opportunity I think to inject them into listed on listed platforms. And obviously at the same time we also have two platforms CDL hospitality trust as well as IRE global, you know, both with very different focus and these continue to be strong growth drivers for us. Obviously, you know, we do need an interest rate environment to be a bit more favorable. We need capital markets to be a bit more favorable before I can accelerate things a bit further. But we are working already on some new platforms that hopefully we can unveil within the next 12 months. It all goes smoothly. And for my last slide just to give you a flavor of what we have built

up over the last few years in the global living sector portfolio. This shows you the breakdown by country as well. So obviously we only have one PRS, Private Rented Sector Project, which is the Sunnyvale one. I mentioned in the UK right now we have 2,368 student accommodation beds as well as 1,857 PRS units. And in Japan, we have 2,246 across 40 assets with two to be completed this year, physically completed this year. In Australia, we have two built-to-rent projects that will yield 563 units. So I think we are very confident in this sector. Obviously this sector, aside from Japan, which is still, you know, has a strong spread over borrowing rates over there, but obviously the rest of the countries do come under pressure because of where interest rates are right now, so we do need this to be a bit more of a favorable environment. But suffice to say, I think we built up a very strong and sizable portfolio that gives

us, opens up a lot of options for us to create new fund management platforms and entities. So we do realize that I think we need to continue to push forward, you know, with speed on our capital recycling and something that will become part of our business, ordinary course of business and you will see it year in year out. So we are trying to accelerate that but it will take some time but we are working on that and I see that as things go forward I mean we will start to get into a much stronger capital position and our business will start to be a little bit more asset like a little bit more asset like and I think that will stand us in good stead for the future. At this stage I'll pass it over to Yiming who will briefly take you through the financial highlights and they will open it up for Q&A. Thank you. Thank you Sherman. I'm aware it's very close to lunchtime. I promise to keep this

succinate short. Okay so first let us have a snapshot on the performance of our three core segments. Revenue decline substantially from 1.7b in one half of property development I mean sorry. Revenue decline substantially from 1.7b to $469 million, which I mentioned, largely due to the timing of profit recognition. We're all aware that this segment itself is always lumpy in nature. So, the first half of 2023, we have the EC project which boosted the first half of 2023 revenue. For the first half of 2024, the contributors for revenue and PBT includes Erwel, The Miss and overseas projects such as Incheon, New Zealand and Australia. Notably, our recent projects which are JV in nature, such as Tambusu Grant, Piccadilly Grant and Kenny Hill Pierce, they do not contribute to revenue line. PPT for this segment is $9 million for first half of 2024. Lower revenue translates directly to lower profits for this segment. This is of course exacerbated by the construction delays and high

financing costs for project years to be launched, which is our Norway Grant as well as our Central Mall. Hotel segment, this segment registered 11% increase in revenue, reported profit of $23 million. So revenue growth is really very much from acquisition growth for properties, including our self-fatal Brisbane Central in December 23, Hilton Paris Opera in May 2024, and the soft opening of M Social Bouquet in January 2024. There's of course also better performance as Global Rev Part increased 3%. The higher PPT is really a good flow through from revenue. Notably, there was higher contribution from Grand Copton Hopter Front, which was under renovation in the first half of 2023 and Grand Higher Taipei, which recorded a very good 12.4% improvement in REFPA. On investment properties, again the increase is due to acquisition growth. For St. Catherine's Docks, it was acquired in March 2023, so for 2024 we had a full half year contribution. Tung So Long Mall, the beautiful mall that we all went to recently, has reopened in phases from December 22.

We had of course acquisition growth from living sector for Japan, UK, as well as hotels including the Nitri Premier in Myeongdong, as well as our bespoke hotel Osaka. Increase in PBT is mainly due to higher divestment gains from several core assets. Shriaman has mentioned earlier, CityLink, Warehouse, CityTech, as well as Fortune Centre. So diving a little bit deeper into the hotel operations segment, which reported 11% increase in revenue, 7% excluding the new acquisitions. This slide shows the REFPA by region. So you will notice that we have removed references to pre-COVID years as we have actually already exceeded pre-COVID years by more than 20%. Singapore, rest of Asia, both have increased REFPA of 2.7%. Singapore is driven by higher occupancy, rest of Asia is driven by higher rates. Australasia has an outsize REFPA increase, 30.4%, due to addition of surf hotel respite. New York also did a very good 6.3% REFPA as one of the New York hotels had strong airline

London itself has a 2.4% decrease in REF power due to marginally lower rates in the first half of 24. But having said that, London GOP margin is actually still the highest at 43%. Rest of UK and Europe 3.8%. With Olympics coming up, we do expect the second half hopefully to be a little bit better. So with the backdrop of the REF power by regions, this slide shows the global REF car, REF power increase of 3% driven by both occupancy and rate. GOP margins are very good, it has improved 0.9 percentage points. Regions that do excellently well for GOP margins are Singapore and London. Next we move on to revenue by segment. Revenue dropped 42%. I mentioned earlier hotel operations and investment properties are both good acquisition growth and investment properties increased due to the full contribution as KD, PBSA and the two hotels. So on this note, I just want to highlight that for the two hotels, which is 93 Premier as

well as B Spoke Hotel in Osaka, they are masterlies in nature, which is why they are recorded under this segment. Next on Ibita. Ibita stands at $456 million for first sub-24 comparable to 23. Ibita demonstrates strong cash generation. It's one focus area that we look very closely at. Our target is typically about $1 billion of annual Ibita. So EBITDA for this property segment is a little bit lower this year as made up for by the investment property segment. So in this regard, I wanted to emphasise again the group is a real estate company across different geographies and capital recycling is definitely part of our NDA. Lastly on PBT, PBT declined by 14% again due to the timing for property development and of course in the high financing costs and of course we still have this element of depreciation costs like a broken record, but CDL accounts for our properties at cost and we deputate our properties vis-a-vis the fair value model.

So while PPT has declined 14%, you will notice that our PACME has actually increased 32%. This is because there's lower non-controlling interest in 2024 versus 2023. 2023, the major contributor was an easy project PM1 grant of which the group only owns 60%. So there was a 40% NCI in there. In terms of balance sheet, we continue to have strong and robust fundamentals, strong cash of 1.7b, committed credit facilities of 3.7, gearing stance at 69%, this has increased from 61% in December, largely because of acquisitions of the Hilton Paris Opera, the living sector, as well as we have also paid up for the land betterment charges for Central Mall. Average borrowing costs increased from 4.3% to 4.5%, so we are heartened by the start a rate cut by Bank of England because most of our borrowings are either in-sink dollar which is tied largely to FED and our impulse. So we certainly are waiting for the rate cuts

which will be positive for the group. In terms of that expiry and that currency mix we have a fairly balanced for 2024 we have made arrangements for refinancing accordingly. So 2025 we are also very confident because it relates largely to two projects which are very well sold. So in this regard, we also wanted to highlight that very recently in August, we actually raised a five year, 200 million bond at 3.145%. This rate was very favorable. We took a good window for that. And we do look forward to issue more fixed rate notes in the coming 12 months to average down interest rate. Lastly, foreign exchange rates, you know, we adopt a natural hedging strategy. We do not take speculative positions. And in terms of FX exposure in the key markets that we operate in, we are about 75% natural hedge. Once again, thank you everyone, especially the bankers who have been supporting us with their hand over the Belinda.