1H 2021 Half-Year Financial Results Briefing

Good evening everyone and thank you for joining the Thai Beverage First Half 2021 results call. All participants have been placed in a listen-only mode. Later we will conduct a question and answer session and instructions will be given at that time. I will now hand over the call to the presenters Ms. Nam Fong, Ang-Chun Tong-Rong-See, Thai Beth's Head of Investor Relations and the members of Thai Beth's Senior Management Team. Thank you. Good evening ladies and gentlemen. Welcome to I am Tia Tia Beras. The first half 2021 ended the 31st of March 2021 financial resource conference call. First of all, we would like to say sorry for the delay because we have some technical issues,

but right now we can resume and we can start the call. I am now for an answer to Tom Rong's behalf of investor relations. For the call tonight, I will start with summary of the first half results, Then we will open the line for Q&A session with our management team. For the summary of the first half results, total sales revenue of the company for the first six months ended the 31st of March 2021 was 131,252 million baht, a decline of 4.3% when compared to last year. This was due to a decrease in sales revenue of our business segment from the impact of the second wave of COVID-19 pandemic in Thailand.

Net profit was 16,076 million baht, increased 8.7% compared to last year. This was due to an increase in net profit of spritz and beer business. And due to last year, there was other non-recurring costs and deferred tax utilization related to beer business restructuring. Although there was a decrease in net profit of non-alcoholic beverages business and associates, and exchange in a profit to net loss of the food business. Tai Beth Board of Directors agreed to propose an interim dividend payment of 3,768 million baht, or 0.15 baht per share. For the highlights of the first half 2021 results, the company's space business was marginally affected by the second wave of the COVID-19 in Thailand.

is generated sales revenue amounting to $63,876 million. 0.6% decrease when compared year on year. And total sales volume recorded by the business declined 1.2% year on year. Nonetheless, net profit still amounted to 12,866 million

and increase of 3.6% year on year. New to arise in gross profit and a decline in advertising and promotional expenses. The company's BA business recorded sales revenue amounting to $53,978 million in the first half, or a 5.1% decrease compared to previous year. Total sales volume decreased 5.3% year-on-year when including sub-ego sales, and decreased 7.9% year-on-year when excluding tobacco sales. However, the company's net profit for the BA business reported a satisfactory increase of 84.2% year-on-year to 2,214 million baht. This was mainly due to the decrease in distribution costs and administrative expenses. The company's non-alcoholic bearish business generated sales revenue amounting to 7,592

million by in the first half, down 12.6% year-on-year, due to a 14.6% decline in total sales volume. However, excluding non-recurring items for other income recorded in the first half of 2020, the non-alcoholic bearish business recorded a significant increase in net profit from normal operation of 98.2% year-on-year due to food and cost management. Net profit for the period was $333 million. The company's food business recorded sales revenue of $5,885 million in the first half. A 19.9% decrease year-on-year. The food business was impacted by the second wave of the COVID pandemic in Thailand, which caused concern among consumers about dining out at the restaurants. This was also impacted by the restrictions on restaurant

crossing tasks in certain areas. This provides efforts to cushion the impact of COVID by enhancing home delivery and takeaway options and by managing costs prudently. The decrease in sales revenue of the food business caused the business to record a net loss of 104 million bucks in the first half. The company's international business recorded sales revenue totally 29,832 million bucks in the first half, down 3% year-on-year. The revenue for international beer sales declined 4%, mainly due to the decrease in tobacco sales revenue. However, revenue generated by international spirit sales increased by 2% year-on-year due to significant growth of Scotch whisky and Chinese spirit sales. We will now open the call for current air with

our resource. Since we are all working from home right now, tonight we will have Kun-e-Sai will be our MC for the Q&A session. Kun-e-Sai is our director and Senior Executive Vice President and Chief Operating Officer in Thailand. Sirana, please go ahead and open the line for the call. Thank you. We will now begin the question and answer session. Participants with questions to post, please press 01 on your telephone keypad and you will paste in the queue. To cancel your queue, please press 02. Once again, please press 01. Okay, gentlemen, this is Wai-Shai speaking. I will manage the Q&A since we are working from home. This is our first time, so I'll do my best.

So before you ask questions, please tell your name and your organization, and then please ask questions clearly and slowly so we can respond to your questions correctly. Thank you. Please start. Thank you. Our first question, we have Tiki-Tep from Kia-Nak-Yin, Prach-A. Please go ahead. Hi, can you hear me? Yes, yes, please go ahead. Yes, I have just one question. In this quarter your spirit cells decay almost 3% year-on-year. I'm not sure if you can give us a breakdown between the cells in Thailand and Myanmar and maybe an update on situation in Myanmar, including your production facility and sales and overall situation.

Thank you. This one I will ask for Parkhorn to respond to the questions on Spirit and Myanmar. Parkhorn, please. God continue, Taehuk. All right, this is Parkhorn, Chief of the Spirit Business. Since I understand that on our upload, we also show a quarterly breakdown and it's showing the overall spirit volumes and decline. It's just a very small single digit. The questions you ask have a bit of a few for. So in Myanmar, obviously there's a situation there. So the cell volumes in Myanmar decline by mid-team mid-team in terms of percentage for the quarter.

But in Thailand, our white spritz still continue to grow. The reason why the total volume of spritz slightly declined because we have a decline in brown spritz sale is twofold. One is last year, same quarter. we actually have price increase. So there's quite a fair bit of volume loading in the second quarter of last year. As for this year, there isn't. But the overall consumption of browse rate, you could imagine given the disruptions in COVID wave two in January, and it has impacted the consumption slightly. So the two combined showing the browse rate in the second quarter coming down slightly.

So, but overall, as you can see, profitability is indeed done, both second quarter and the full six months have improved in the spirit business. Actually, that's also helping with our other international business in Scotland. Although they're small, they are improving and we also remain profitable. Just to cover on Myanmar situations, We run Grand Royal Risky, the number one whisky business in Myanmar. We own 75% of this business together with our local partners. The situations as of now, I would say as of now meaning as of early May, this first two weeks of May, have improved by a lot. People, if you follow the news in Myanmar, you have seen that in February, there's a lot of disruptions, banking

system shutdown, and continue to disrupt it through the water festival in early April. So then in mid-April, the water festival basically have a 10-day holiday, so the country gone into more quiet. So in the first two weeks of May, the situation today, I must say it's improved by a lot. And in February, we sold, basically in February and March, what we have sold, we have to collect in cash because the banking system is not operational. As of now, we are back to be able to collect money through the banking system up to 80% of the sale, so remaining 20% still collecting cash. And we are paying our employees in cash

because the banking system for the employees are not quite adequate long line at the ATMQ. So in terms of the cash collection, they are back to close to normal. And in terms of logistics, we no longer have any more logistic backup and we have enough supply packaging material and everything for us to continue production. We continue to focus on sale and focus on collections, and we do not have 18 issue of our receivable and our headline sale generally about 10, 15% down from normal period. So I think that's hope give you much comfort as to the some impact that we have to take on with the Myanmar Ops.

Thank you. Right. I have follow-up questions if I may. Since the situation has improved in May, should we expect improvement in sales as well? Have you experienced any improvement in sales? And then the second question, there are certain listed companies in other countries that set provisioning against investment in Myanmar. But just from what you said, I don't think your situation, I mean, the clan royal situation, it's that, it's that severe. Is it fair to say that the risk of provisioning against clan royal investment is low? Is it a fair statement? We do not expect to make any provision as of now to our Myanmar operations. I think the acquisitions that we took on in October 17, there's actually quite a good

size of good views, but we have measured that and we believe the business actually, today the business make more money than when we even bought it and even with 10-15% decline sale, we're still making a good ebita level. So I think yes some of our businesses that operate in Myanmar have to make provisions but our businesses still remain very solid giving the situation. Right. I'm Wai-Shai here. I'm the core chairman of the company. We have to admit that the situation It's very difficult there, but as a chairman of the company, I'm very satisfied, very happy with the outcome. It's a lot better than I expect.

We are now trying to, even though the sales have some pressure, but we try to sort of maintain our profitability there, and the management there is doing well. We have a good management team there and also a good partner there, so I'm still very confident on the DRG or the main business until. Right, back to here that. Hello, to this time I will add in, I would like to add in Kunkua Chi and Kunkpa Python for the audit of KPMG, one of the audit techniques they have to check the valuation, the impairment of the investment to get the result. Yesterday we have the audit committee meeting,

KPMG they confirm by the income at post DCF. They still support our all investment in Taipei and still have no effort for any impairment of the investment of either the good view and then still have the good win, have a head win to go. Yeah, so we are not touching now, we have a head win to compare to our investment so no impact anything on this one. I would like to add to that. Thank you, Mr. Tsai. That's really clear. Yeah. Thank you very much. That's all the questions I have. Thank you. Thank you. Next question, please. Thank you. Next we have Nicholas Tei from Credit Suites.

Please go ahead. Hi. Just a couple of questions for me. I wanted to check if you could update us on the peer market share in Thailand and also, I guess given the situation now, wanted to just understand a bit more on what you can do with your marketing and whether you've seen Boonroat react in any way given that you guys have gained more market share from them over the last year or so. And just wanted to clarify one thing on what was said on the spirits volumes earlier. Am I right in saying that white spirits continue to grow, whereas the brown spirits decline a bit year on year?

So overall, if high spirits a bit flat and the decline is more so in the near-mark side? I will address the second question. So to save time, what are you saying is correct? White spirits keep growing, and then brown spirit, because it's nature, some of them it's consumed on premids, so it's decline. So overall is flat, you're correct in terms of volume. And then the profitability as for part one as mentioned, is still going nicely. Okay, on the beer questions, I would like to address that about Thai beer market address. Lester, please. Yes, sir, thank you. Good evening, this Lester here, heading up the Thai beer business.

You talked about the market share and our A&T spending and how the competitor are going to respond. Let me take that step by step. Our market share at the moment now is close to 40%. So while the market has declined earlier, you heard Kannam Fong give the overview that revenues have come down. The bear market has actually declined by about 10% this year. So while our share is close to 40, we've actually picked up share during this period over the competitor. And we've done this with reduced A&P spending, obviously because of the COVID period. So moving forward, do we think that they will pick up their A&P hard for us to say?

But what we're saying is what we feel internally is that we've done very well picking up share with reduced spending and we would like to keep it that way. So moving forward, we want to focus on the more efficient areas of A&P, spend more on that where we get volume and share returns, and cut down on the parts that don't give us as good returns. So moving forward, we expect to pick up more share and reduce spending compared to a year ago. Thank you. Thank you, Ashraf. Okay, thank you. Thank you. Any further questions? Do you have any other questions? No, I'm okay, thank you.

Thank you. Next, we have Givia from Morgan Stanley. Please go ahead. Thank you. Good evening, Kanon Hx. I just had two questions. The first question was just on the raw material packaging costs. Notice that it's increased for both the spirits as well as the bear business. Just wanted to get a sense on how you're seeing that going forward and should we be expecting some price hikes to be taken to offset that. And a question related to that is just if I look at the implied domestic bear ASPs, they seem to have increased a bit here on here. I wanted to get a census there's a change in mix in the beer space in Thailand or is it some sort of pricing

the high that has already happened? And then this is the last question is on just the quarter to date trends because last year April basically had no sales in Thailand for alcohol but now we are again going into a restriction period. So if you could help us understand on an aggregate basis quarter to date, you know, what are seeing in terms of volume trends for both beer and spirits that would be very helpful. Okay there's three questions on the raw materials on the beer I will ask Dr. Pissnoot to respond that and then spirit I'll ask when for parkour to respond that in term of beer domestic AHP

look into it I don't know whether it's Vietnam or in Thailand but please prepare. On the third questions I'm just respond myself yes you are right because last year April we only say only one one we have a fool with nothing much so the third question is answered now the first question dr. prisoner please yes you are dead right now the comedy phase or eyes up you know sky rocket thing you know but however we are so lucky in the way that we have book you know the BM out you know ahead of the game until next March. Okay, so we are really well safe on the key raw material.

Also the hops, you know, we have already booked in advance. So now I may also help lesser to answer you about the packaging cost of the beer production. We are doing not bad at all. We are doing something like over 60%, but not quite 65 as we packet it. But of course, you know, the budget of 65 or a little bit over that for sure to use a returnable bottle. Thank you very much for your question. Thank you. Thank you, Dr. Pissenu. So, Dibja, you asked this question again, late March, so it's okay. And then on the spirit, on the spirit for platform, we will respond to your question.

Yeah, can you repeat your questions again? The raw materials. Go ahead, go ahead, Dibja, go ahead. Yeah, okay, so some from a couple of others wanting to know that raw material and packaging costs have gone higher, but despite that the spirit gross profit margin also improved. So can you just comment on what's driving that improvement and how should we think about it in terms of April and May if you have any? I know which I answered, but just wanted to get a sense that when you look at it on an aggregate basis, how's the current sentiment on the volume run rate? In terms of, well, I'll comment it on Thailand,

because I think the majority of us, 90% still coming from Thailand. And in terms of raw material, there's a bad part. I mean, there's a good part. It's, well, the negative part is, there's somewhat higher molasses and input costs. People who've seen the news, they know that molasses for this crop is a bit short compared to, So that's why price is moving up a bit. We have changed some, changed the packaging material or changed bottles shape of home-tone browse speed 700 ml. So we switched to 100% new bottle for the time being. And we will, hopefully in the future, we will get more used bottle coming back

in about six months time. But at the positive side is that the collection This is our majority of our volumes in Thailand, actually, widespread and the water, widespread bottle for Wong Kao, the use rate that we can collect and use improving, moving to our target range. So these have started to keep setting each other. That's why we put control on cost for this six months and A and P wise, because these two are six months years ago prior to COVID. Actually, COVID have been around, been really hit Thailand

to late March last year. So the six month prior year actually have no COVID and therefore we have good spending in terms of it. LAP have been tightened because we continue to live in this new world of new normal and both brand and trade marketings. So that's why the two combined giving us a higher profitability. I hope that explains. There is more need for you to take a price hike in spirit. Is that something that would be considered or it's not required given where your raw material costs are locked in? If there is an opportunity to take price hike, I take it any day and every day.

It's just that the opportunities have to be reviewed. I think we run a very profitable business. But in any cost approach, if there's an opportunity to move price up, that will not impact our long-term sale volumes. I think we have certain review. Then last year, six months, last year, we actually took price up on Brown's spread prior to COVID. Yeah. So, when we look at Brown's spread six months on six months, I think the client somewhat have to do with overbuilding stock from price increase and somewhat decline consumption due to COVID and it's not really due to price increase. So I think we are quite safe on that. As far as

white spirit, we haven't taken price increase for the past two years. So you're asking the right question. So we're looking at the opportunity. Thank you Bob. Thank you for our next question, Thank you. Our next question is from Hading. Please go ahead. Hi, thank you. This is Sunday from Hading Löbner. Actually, my first question is on raw material content relation, which you've answered from the previous question. Thanks for that. But I also wanted to ask a bit more question on Vietnam. Two questions there. First would be on the drunk driving law. I know there's been no mention of it recently, but I wanted to ask if that law is still there and if it's impacting volume

trends in Vietnam. Hello. Hi, Ojo. Sorry that we got disconnected from the Vietnam side. Do you have other Hold on, hold on, hold on, hold on, hold on, hold on, stop, stop, stop. Michael, maybe you can answer that. The Decree 100, what is the impact? Any impact? Is it worse or better? Michael, please. I think the Decree 100 is still there and obviously it still has an impact but certainly not as bad as when it was initially implemented in Vietnam. Vietnam. I think people get used to it after the world blast during the current situation. It's very hard to see the impact, especially when the COVID pandemic has shut down a lot

of its causes shut down on many restaurants and pubs and other establishments in some part of Vietnam. So I think that would be the current assessment. Thank you. This is work. I think from our experience in Thailand, same thing happened in the The beginning everybody is so tight, the consumer are tight, really, really excited, and the governments are very tough, and after a while, the consumer used to it, and the government are losing up a bit, actually this is the same thing that I'm seeing now. Thank you. Thank you very much for that. Thanks, that's very clear. The second question is on the new product in Vietnam,

My last update was that it's been launched since last year. You guys had some problems with the channels, with competitors trying to block it. Has there been any update on that in terms of being able to address that issue? And how is the reception of that new product been since it's been about six to eight months now? Has it been launched? Has it been good? Has it been beyond your expectations or below your expectations? Okay, Ojo, let me check with Ben and Ben that is coming back. Is Ben in there? If not, Ojo, I have to leave this question when Ben will come and connect back again, okay?

No problem at all. Thank you. Thank you. Let me move to the next question. We have Qeitan. Thank you. We have Qeitan from CIMB. Hello, everyone. Hi, Ben and Shpant. Can you hear me? Yes, go ahead. Hi, Karanachai. Thanks for the call. Good to hear from you again. I just wanted to check, you know, on the A&P, you have done really well in terms of cost control. But I also noted that there was mention of market share coming up despite this A&P not being spent. Can you just give us some colour on what you have been focusing on and maybe what the measures have been?

have been because previously pre-COVID-19, AMP was actually one of the biggest things that helped to drive this market share. What are the big changes if you could share please? Is it beer or spirit that you're asking? It will be beer. That was Thailand. Okay, let's try. We call for a little bit of fun. Yeah. Thank you. Let's raise your call. After we have finished Bennett, we come back. I'll ask a question to Bennett. All right. Hi Suzanne, it was a last day here. Hi. That's a really good question. What we've done obviously because of COVID, a lot of the big events were canceled or postponed,

mainly canceled, especially at the end of the year, the December period, you know, in December period, there are a lot of beer parks and lots of festivals going on and also during the cool season, lots of music festivals going on. So all those were canceled or postponed to a later date, probably next year. So big savings there. So what we did actually is they used the money for distribution. What we tried to do is to improve our distribution and therefore getting the sales. At the end of the day, it's a lot of sales driven activities now rather than the big events and big, big mega events to build a brand.

OK, because I remember it. That's the main part of this. I see. The last call, I think there was some talk about vans going around and all. I can't remember whether that was more for spirits or the beer side, or is that across the board in Thailand? Is that one of these distribution measures that you are referring to? The distribution that we're doing is more area management. So we get very focused into selling into outlets first. and then it will already sold in to improve the sales per point of distribution. So it's really down to at each particular individual area around the country, our guys are pushing out and getting more distribution,

getting more sales per point of distribution. Okay, got it. So the big effect for sales really is to get our stock out there. So when we increase our stock weight, the sales volumes go up and that's what we've been pushing on. Okay, got it. Thank you. I like to add that because I think there are two wars for both the spirit, the off-trade war and the on-trade war. The off-trade, because of the COVID, we stopped because I think we have to admit that the on-trade, the more you spend money, the more you win, and the competitive spend a lot of money. But on the off-trade, we are

very strong compared to the competitors. We have 1,200 cash rent running around the country covered about 300,000 outlets out of the 450 universe. And then when COVID happened, people are moving back, I mean, workers are moving back to their homes. So they're going to the up country, which will actually we are very strong in that area. We are lucky to increase a number of cash went 200 cash went last year on time with the topic coming in so I think that is the advantage and benefit that we get on the beer side okay correct thank you so so I would like to go back to all your questions since

Bennett is here already Bennett also asked about you to keep a color on the new product on on your Simon shield would you give the response to all your You asked during our quarterly briefing just about a week ago, and my answer is to the same, it's within our expectations, but we think that it can grow even faster, and that's why we invested a little bit more in the first quarter of the year. That's why you see excelling expenses in the first quarter increase. So in short, I think it's within expectations, we think it can improve, and we're investing more in the brand. Okay, clear.

Thank you. Thank you. Thank you. Is there any more questions? Is there? Thank you. Okay. Thank you. I will make a question. We have Pramada from UBS. He's going in. Hi. Good evening. Thank you for the opportunity. My first question is, in mid-April I read from the local papers that the government was talking about potentially increasing excise and introducing new tax measures like for new products that can drink and also tax for existing categories like alcohol. Any in color on that in terms of the latest thinking from the government? You read from the local newspaper what country? Thailand. Oh Thailand, oh I'm in Thailand. So let me respond, let me respond to that question.

I think the government, if they are not busy with the pandemic, they are always talking about hats, right? That's quite normal. But, I mean, we didn't hear anything yet. Normally we will hear things two or three months ahead. At the moment, I can say, I have to say that we haven't heard anything's movement on that fact yet. But I cannot guarantee that the cuts do not increase because at the end of the pandemic, budget year, they probably discussed again the budget year here in September and this year they spend a lot of money on the COVID pandemic things. They may talk about it but I didn't hear anything yet. I didn't hear anything on the spirit or on the alcohol yet.

I mean in response to that I think Kuchapa Nipri was also mentioning that you know as increasing prices as part of an excise management strategy is management going to try to increase prices ahead of potential access increase? No, no, because right now the tax system is based on the price, percentage on price, so the minute you increase, then the tax increase. That's why I believe that because of the new system, now based on your retail price, the government will not increase the tax in term of rate very much because the minute you increase your price, your tax is coming in. So that's what I think what we do. One thing we can

assure you that if anything happens on the tax or tax rate, our policy is to maintain the margin percentage, not even the absolute margin in bar, the margin percentage, which means that if the tax increases 10 bar, we probably have to increase like 14 to cover the margin. That's been practiced during the past 16 years around this company. Thank you. Thank you, Kunisha. And second and last question. With the deferral of the potential BRIPO, are there any other sort of potential strategic actions that management is exploring to maximize shareholder value? I mean, previously in 2019, Kuntapane was saying that he was open to collaboration with international brewers, partly the rationale to look at opportunities to deliver as well

as knowledge transfer, product capabilities transfer, and those rational continue to hold. Are there any sort of other measures that you'll continue to explore to crystallize value? I think what Kuntapana has mentioned earlier is cover everything and we're still exploring that seriously because we still open for any opportunity coming in and then for the shareholders I think we will make sure that we can enhance the shareholder value anytime there is an opportunity that I can respond for Kuntap and not like that. Thank you. Thank you so much and all the best for the quarter ending June 4th and hope the situation improves in that call. Thank you.

Thank you. Thank you. Thank you. We leave that. Thank you. Just a gentle reminder to all our colleagues, if you'd like to raise a follow-up question, you may press 01 on your telephone keypad. Our next question, we have June from Goldman. Please go ahead. Hi. Good evening management. Thank you very much for the opportunity. Firstly, it's a housekeeping question. I just want to clarify for spirit. Just now we mentioned about the roughly flat volume for domestic spirit and the meat kind of decline in the Myanmar side of the volume, was it referring to just the March quarter itself or is it a six months performance? That's my first question.

It's both. We have about mid-team decline for the six month year. Right, so both the quarter and the half year, the six months, the performance is similar like flat and meeting flat for domestic. The first the first the first quarter the first the first quarter declined due to COVID. There was some COVID problem also leading to the election and the second quarter have to do with the the change in political environments. Right understood that's for for Myanmar right yeah. Right. Okay, got it. So, okay, so I wonder if the domestic one is possible that you could kind of break it down for us for the December quarter and the March quarter is the volume quite similar or flat year on year for both quarters?

I think it is flat. Our 6 month domestic volume in Thailand is flat. I mentioned that there's a decline in brown and the increase in white, but very low though. So our overall 6 month number remains about flat compared to last year. Okay. Okay. Thank you very much. And my second question is on the beard side. I do notice that the overall beard in the March quarter itself in terms of the growth margin, there is a slight decline year on year. So, you know, just now I know that the management has elaborated those, but it seems to suggest that, you know, our growth margin are pretty robust, but I

just wonder what it's been causing, you know, some of this growth margin decline in the year. So it looks like the back holds the margin, growth margin is actually expanding year-on-year. So I wonder whether that means implied that a domestic growth margin is under little bit of pressure on the year-on-year basis. Yeah, thank you. You refer to Thailand or Vietnam? Beer. Actually, we only have the overall beer. Yeah, overall beer, we only have overall beer growth margin number. So we can only kind of imply what should be the domestic so it will be good to have more color yeah on the domestic side. On the

cross-market in Cudum, did you notice that you know the reason? I think Cudum H.I. I think the main reason for it is I think it's a no-loot to it that you know the our target recycle rates will not hit yet although we are hitting that direction so less usage of bottles but there's some side increase in in some raw materials costs as well. Okay, thank you, Michael, thank you. Okay. Yeah, not worry. My last question. The renewable usage percentage will be increased. But you are not worried. Okay, go ahead, your last question. Okay, got it. Yeah, like last question is on the refinance, in terms of the debt management,

and then that we refinance the bonds with some bridging loan. I wonder, the bridging loan in terms of the average interest cost, what it is versus the bonds that we pay down. Yeah, so it would be great to have some color on that. Thank you. This is Koon Sidi-Chai. Can you respond to these questions? And Bob can support. Yeah, Sidi-Chai speaking. So I was at that bill a month this year. total positive 0.8 million bucks average cost is about 2.5% for NNAM. But our bidding loan 2 year bidding loan next with the on-mark this year will be another 2 years average cost average is about 1.57% only. I see thank you very much. Thank you, thank you, thank you

Thank you. Just a gentle reminder, if you would like to raise a question, you may press 0 followed by 1 on your telephone keypad now. Once again, that will be 0 followed by 1 if you would like to raise a question. I think that there should be no more questions. At one point you can thank the next please. Ah, Serenad, then we can close the session. So, thank you everyone for joining the Tiber Edge conference call tonight. If you have If you have more questions, please feel free to contact IR Department at IR at typef.com. Thank you and have a good night. Thank you. Ladies and gentlemen, please call.

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