CBRE Group's CEO Reviews Completion of ING Real Estate Investment Management Operations in Europe - Conference Call Transcript

| About: CB Richard (CBG)

CBRE Group, Inc. (NYSE:CBG)

Acquisition Call

November 1, 2011 5:00 PM ET

Executives

Nick Kormeluk – SVP, IR

Brett White – President and CEO

Jim Groch – Chief Investment Officer

Gil Borok – EVP and CFO

Analysts

Will Marks – JMP Securities

Sloan Bohlen – Goldman Sachs

Brandon Dobell – William Blair

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the ING REIM closing conference call. At this time all participants are in a listen-only mode. If you have an opportunity – you will have an opportunity to ask questions after the presentation. (Operator Instructions) As a reminder, this call is being recorded.

I would now like to turn the call over to our host, Mr. Nick Kormeluk. Please go ahead.

Nick Kormeluk

Thank you and welcome to CBRE’s ING REIM closing presentation and conference call. Yesterday we announced that we completed the acquisition of ING REIM’s operations in Europe. The purpose of today’s call is to share additional details about this acquisition and its benefit to CBRE.

This conference call is being webcast and is available on the Investor Relations section of our website. Also available is a presentation slide deck posted about 30 minutes ago, which you can use to follow along with our prepared remarks. An archived audio of the webcast will be available on our website later today. Please turn to the slide labeled Forward-looking Statements.

This presentation contains statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our future growth momentum and financial performance, as well as the successful integration of the acquired ING REIM businesses, our ability to leverage the integrated platform to grow our market share and the projected performance of and risks relating to the acquired ING REIM businesses relative to the price we paid.

These statements should be considered as estimates only and actual results may ultimately differ from these estimates. Except to the extent required by applicable securities laws, we undertake no obligation to update or publicly revise any of the forward-looking statements that you may hear today.

Please refer to our third-quarter earnings report filed on Form 8-K, our current Annual Report on Form 10-K, our current quarterly report on Form 10-Q, in particular any discussion of risk factors or forward-looking statements which are filed with the SEC and available at the SEC’s website, SEC.gov, for a full discussion of the risks and other factors that may impact any estimates that you may hear today. We may make certain statements during the course of this presentation, which include references to non-GAAP financial measures as defined by SEC regulations.

As required by these regulations, we have provided reconciliations of these measures to what we believe are most directly comparable GAAP measures, which are attached hereto within the Appendix.

Please turn to slide three. Our management team members participating with me today are Brett White, our Chief Executive Officer, Gil Borok, our Chief Financial Officer and Jim Groch, our Chief Investment Officer.

I will now turn the call over to Brett.

Brett White

Thank you, Nick, and good afternoon to everyone on the call. I think you all are familiar with Nick, Gil and myself, although, many of you have not met Jim Groch. Jim is our Chief Investment Officer. Jim was also the lead negotiator on these ING-related transactions. I don’t think there is an aspect of the acquired business that Jim isn’t fully aware of. And I suspect you’ll be hearing more from Jim during the Q&A. This presentation is split into four sections.

The first section is just a list of headline points I am going to run through with you briefly. Then, Jim will present the slides that discuss the fit between the ING acquired business and our Global Investment management business, and also some fairly deep discussion around the nature of these funds, how fees are paid, those sorts of things. And by the way, we have never in any of our earnings presentations been this open or forthright about the intricacies and inner workings of these funds. So we are doing this, open up the transparency a bit in an effort to make sure all of you understand how these businesses work and how we are paid. Then after the fit description which Jim will do, Gil will take you through the two pages of financials and then finally we will break to Q&A at the end.

So let me begin with why this deal matters. And I have six bullets here I want to talk to you about. First it fulfills our 20-year objective of being the number one firm in each of our six business lines. Now I have referenced this before to you on our conference calls, but this is a very important, very serious thing to us. We set this objective back in the early 1990s. It took us 20 years to get here, but for those of us who were around then and have been working on this for two decades, this is a very important moment for CBRE.

Second, it accelerates our objective to further balance our earnings between transactional and contractual differences. I think all of you are very aware that this has been a top priority for this firm, again for many, many years. We began talking to you about this the moment we went public and we haven’t stopped talking about it since. We have been able to make serious progress in this area, both through the acquisition of the Trammell Crow Company and now the acquisition of the ING Real Estate Investment Management business.

Third, like each transformative acquisition before that we’ve done, our best athlete philosophy allows for a significant enhancement to our already best in class capital. And I think all of you again are very familiar with our philosophy around best athlete and this deal is no different. In this transaction, the overall business is going to be run by Matt Khourie, who ran the CBRE business, but all three geographies acquired – I’m sorry, each two geographies acquired and the securities business will be run by former ING executives who held those roles. And we are very, very pleased to be able to create a senior team in that way and we, of course, believe this is one of the primary reasons this integration has gone so well and we have two teams so eager to get to work together.

The transaction adds over $55 billion in AUM, which will produce significant and recurring services revenues. And we have also talked to you about this before, which is we do not have the luxury of being hired for all the services that the Real Estate Investment Management Company hired. However, in general, we are hired for about 65% of those services and the ING deal brings us in there 55 billion to capture share with and sell into very, very significant synergistic revenues.

Next bullet is something we are actually quite proud of. This transaction was one that was fiercely fought over. There is no deal we pursued in our history that had a who’s who of privately financial and strategic bidders all vying for this business. And when the process started over a year ago, I think that many of them thought that our chances to prevail here were quite low. And in the end we not only prevailed, but we prevailed on all of the businesses that we wanted and we are very proud of that.

And we also feel with some good comfort that we were able to strike a very fair and well-timed price. And then finally, this transaction creates the premier real estate investment management company in Europe, the US, and Asia Pacific. So we now have a real estate investment management platform that is not only the largest in the world, but also spans every major geography and allows us to handle capital clients in a way they have never been handled before. And we think that will lead to great synergy, great transfer of capital across the geographies and great transfer of funds strategies among our own business through best in class practices.

So, with that, I would like to turn the call to Jim Groch to talk about the fit between the two firms. Jim.

Jim Groch

Thank you, Brett. As we looked at the opportunity to expand our investment manager platform, the ING businesses really were a surprisingly good fit in almost every way. Our business was a predominantly US-based business, ING’s business with a heavy focus on the Europe platform securities business, and much larger Asia platform. ING’s focus has been primarily value add and opportunistic – I’m sorry, CB’s business has been primarily value add and opportunistic with ING’s being a heavy, heavy core focus business for the most part. And also just the general fit of the investment management business with CB’s other services business is quite nice.

Please turn to slide six. This gives you a little bit more of the detail of how the CB business fit with the ING investment management platform. If you start at the right, you see the Americas business that is primarily the CB business, actually entirely the CB historical business. If you look at the Asia platform, that substantially came from ING. If you look in Europe starting with the UK, CB had a very strong separate accounts business, ING a very strong core funds business.

Move to continental Europe, a massive core business from ING. And then, we have the two global products which both companies were in. These are very nice businesses. The fund to funds business, both CB and ING were in that business, but you put the two together and you have about 12 billion of assets under management, a very scalable high-quality business with high-quality leaders.

The global securities business, again, CB was in the business but ING as a market-leading position, particularly with a focus on global-oriented funds. So this gives you a bit of an overview of how nicely the products fit by region and focus.

Please turn to slide seven. I would just like to hit you with a couple of points on Europe in particular. First of all, the European platform highly focused on core assets, ING’s business in Europe probably about 97% core assets. And so with that, you see a fairly steady fee stream. Generally modest leverage. Platform was highly diverse by sector, country-specific funds as well as pan-European funds, and also a very significant institutional focus. So all of these businesses are institutionally oriented businesses and generally almost no orientation to retail investors.

The specific fund that’s referenced here is an example of the Nordic property fund. This is an open-ended fund. It’s a core fund. The assets are located primarily in Sweden, Finland, and Denmark. The assets today, the asset base is 95% occupied. It is about a €1 billion fund and the fee stream here is calculated as most of the funds, similar in fashion to must funds, i.e., here’s a 75 basis point fee based on the gross asset value. The values in these private equity funds don’t tend to change radically quarter to quarter. They can tend to move somewhat slowly over time. There is always exceptions to the rule there. And then there are transaction fees and performance fees, which particularly late cycle creates some nice opportunities.

Please turn to slide nine – I’m sorry, slide eight. Slide eight is a reference to a couple points I would like to make on the Asia platform. In this case, the Asia platform is more similar to CB’s platform, but just larger in scale. The focus here is on value add and opportunistic properties, partially because that is the base of opportunity in that region. There are some core funds and as an example, ING has taken over some large core separate account funds as well as other opportunities in the region.

Similar fees are oriented a little bit more to what we might see in the US. The base fees tend to be higher just given that the more active management that is required on value-added opportunistic funds. They also bring performance fees that are significantly higher as well. At this point in the cycle you see minimal of any performance fees, but late cycle, you tend to have some significant opportunities.

There is a specific fund here we give you as an example, it’s the China Opportunity Fund. In this case it is a closed end fund. Most of the closed end funds run target five to seven years for the initial term with extensions thereafter. Here of course the higher performance fund, potential for higher leverage, focus of this particular fund is China and residential. And here you see the asset management fee structure is about 1.5% on equity invested plus performance fees. And we give you a couple of examples of assets that are filled with in that fund.

Please turn to slide nine. Slide nine highlights the securities business. For those of you who are familiar with Cohen & Steers, I would say that is the closest comp to the ING securities business. This is a global securities business. There is no leverage within the funds. And the bulk of the investments are in REIT stocks globally. The fees come off of the asset base, there are some opportunities for incentive fees. And of course this business, the fees and the values will move when the market.

But this is a very high-quality business has performed outperformed the industry benchmarks over a long period of time. And the global focus of this fund was well ahead of most other competitors in the marketplace. The mandates, as you can see on the pie chart at the bottom left, about 55% of the total are in global mandates, so we are allocating that only to individual stocks, but by region as well. Heavy focus on funds and annuities, closed end funds and separate accounts.

With that, if you would please turn to slide 10. And I am going to turn it over to Gil Borok, our Company CFO.

Gil Borok

Thanks, Jim, and good afternoon, everybody. Many of you have seen this slide before. It reflects the significantly positive impact of 120 basis points that the acquired ING REIM businesses would have had on a pro forma basis on our overall earnings for 2010. And this gives a directional indication of the type of margin impact that these businesses could have on the total company in future years.

If you turn to slide 11, just talking about the financing, assuming the maximum purchase prices spent relative to the ING REIM Europe business, and the maximum co-investment is made there, the transaction including purchase price co-investments and deal costs will total about $1.2 billion. This has been or will be funded with $400 million of term loan D that is due in 2019 at a price of LIBOR plus 350, 400 million in term loan C due in 2018 at a price of the LIBOR plus 325 and then $400 million either in cash and/or minimal short-term revolver borrowings as needed to, depending on what happens with the ING REIM Europe situation.

To date, $950 million has been spent. 800 of that obviously came from the term loan D and C, just a very small amount of borrowings on the revolver, about $40 million and the rest in cash. Pro forma for the transaction at September 30, 2011, on a trailing 12 basis, the estimated leverage ratio simply net debt to normalized EBITDA not covenant is about 2.5 times. We have said that before, and just reiterating that, and likewise we have said before and just to reiterate that no equity was used for the transaction.

And with that, I will turn the call back over to Brett.

Brett White

Thank you, Gil. And under the heading of what else you need to know, I have six quick bullets here. So we are now the largest commercial real estate investment management company in the world with almost 100 billion in AUM. The ING Clarion Real Estate Securities transaction as you know closed on July 1 for consideration of $324 million and co-investments of $59 million.

ING REIM Asia closed on October 3 for consideration of $45 million and co-investments of $17 million. And finally ING REIM Europe closed on October 31, 2011, for consideration of up to $540 million of which approximately 440 million has been paid. And co-investments of up to – I’m sorry, of approximately 75 million to be made over the next several months. And as I was preparing this deck last night, I realized that we announced the Trammell Crow acquisition on Halloween in 2005 and here we are announcing this deal as well.

So I don’t know what that means. And the ING REIM 2011 results are significantly outperforming our internal expectations and model, which is good. And finally, contribution to CBRE 2011 earnings per share will be slightly accretive and has been included in CBRE’s Q3 2011 guidance.

And with that, operator, we would like to open to questions. Operator?

Operator

Yes.

Brett White

We would like to open to questions.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from the line of Will Marks with JMP Securities. Please go ahead.

Will Marks – JMP Securities

Thank you. Hello, Brett, Gil and Jim.

Brett White

Hi Will.

Will Marks – JMP Securities

First question on the seasonality of the fees you are going to get from ING and maybe just the overall platform.

Brett White

Right. There shouldn’t be any seasonality to the fees because these are primarily asset management fees that are paid on gross value of the assets. And so there is no seasonality to valuation. Certainly, the incentive fees come through one time a year. And, Jim, do you want to comment at all on the timing of those?

Jim Groch

Yes, it does vary by business, but there tends to be a Q4 orientation to the performance fees. Also the transaction fees hit, generally the transaction volumes are in Q4. But otherwise the bulk of the fees, as Brett indicated, are base fees and they are flat throughout the year.

Brett White

And, Will, I should mention that this business we acquired is quite different, as Jim said, from our investment management business. In our investment management business, you get these lumpy and sometimes very large promotes. This business isn’t like that. This business is primarily all about the management fee. The incentives that are particularly in the Europe business are not very large, nice to get, and material, but not that large.

Will Marks – JMP Securities

Thank you. Second question just on the second to last bullet on slide 12, outperforming internal expectations. I don’t think – maybe you did give us some idea of how 2011 was looking. We know 2010, I assumed 2011 was a growth year and is 2012 expected to be another? Those are putting words in your mouth but any thoughts on that. I know you are not giving specific guidance.

Brett White

No. All I want to say on that comment is what I said which is, we certainly have a model we built for this business when we went through the due diligence process. And my comment relates to that, which is based on that model and how we structure our deals doing better, but not in a position to talk about the balance of this year or 2012.

Will Marks – JMP Securities

Okay. And then, just last question. The 150 million of cost, how does that flow through in P&L, how are we going to see that going forward?

Brett White

Gil.

Gil Borok

Yes. Thanks, Brett. Well, you have already seen some of it come through, through 9/30 and it has been normalized. And that has been about 35 million of cost including financing. The financing part was capitalized. The rest of it was expense. And then so most of it, most of the rest that comes through, in fact all the rest that comes through will be P&L and will be normalized. So we will call it out.

Will Marks – JMP Securities

And based on what we won’t see broken out in the P&L, what does that do to the margin which was running about 30% for that business? Does it significantly reduce it in near-term?

Brett White

Gil.

Gil Borok

Will, I’m not sure I understand the question. Well, what you won’t see in the P&L would be simply the financing costs that go to the balance sheet and then the other costs will flow through P&L, but there will be deal cost or deal related with its retention severance or any of the like and that will be normalized out. So you will see a run rate or operating margin if you will for the business.

Will Marks – JMP Securities

Okay. So in that merger related charges and others, some of it will show up there?

Gil Borok

It will show up there and that will be the deal cost, yes. Sort of let’s call it one time.

Will Marks – JMP Securities

Right. Fair enough. Okay, that’s all for me. Thank you.

Brett White

Thanks Will.

Operator

Thank you. Our next question comes from the line of Sloan Bohlen with Goldman Sachs. Please go ahead.

Sloan Bohlen – Goldman Sachs

Hi. Good afternoon, guys. Brett, just a first question on investor reaction, I know you talked at the onset of the deal when it was announced about some potential for the price interest, I guess float along with where assets under management were for the deal. Can you just talk about the stickiness of the assets under management?

Brett White

Sure, Sloan. I’ll give you a global response to that and I will let Jim add any color that he feels is appropriate. We believe we won this business primarily around the idea that the dedicated teams within the ING REIM business felt that bolting onto our platform would be the best place for them to be and the most likely that they would get an affirmative consent from their clients to the transaction. And during the closing process, that theory was proven out many times over.

And what I would tell you, and these are conversations that I’ve had with investors, that Jim has had with investors, and the ING team has had, the investors also, I think, were relieved that we were the buyer and excited about the synergy that being part of a firm that only deals with commercial real estate will bring to them. They were formerly in a business that was owned by a company that’s not primarily a real estate services firm and ultimately that got sold. They don’t like being sold, they don’t want to be sold again and we are not going to sell them. So I think that globally speaking and generally speaking, the investors were very happy with us as the buyer and very happy with the strategy going forward. Jim, do you want to add anything to that?

Jim Groch

Sure. Well, let’s see, Sloan, you mentioned both the AUM numbers. First, I would just mention the AUM numbers are somewhat volatile with regard to impact from FX as the exchange rates have been swinging all over the place and on the securities business depending on where the markets are. So you can have in a 30-day swing, a 5% movement pretty easily just on those two factors.

As far as the second part of your question on clients and management team, I would just echo Brett’s comments. We have had very, very positive feedback. I think this was a large, complex business, particularly the European platform. And investors were tentative in making sure that none of the – they weren’t impacted in any way by the change of ownership. And I think they were very pleased at the outcome as to the process in the end and how their interests were carefully protected.

Sloan Bohlen – Goldman Sachs

Okay. But just to be clear, there hasn’t been any specific redemption from investors and if not is that period of, I guess, I can redeem any time, but for the sake of the deal it’s closed now. So from your standpoint you don’t expect any redemptions because of the transfer of ownership?

Jim Groch

Yes, I mean I wouldn’t – I can’t – I don’t think we can say there are no redemption securities business alone can have 4 or 5 billion coming in but offset by coming out on any given 30-day period. So, clearly, there is kind of normal course redemptions. But as far as any kind of material redemptions in any of the businesses, I would say nothing at all jumps to mind. We had a modest reserve in our underwriting of the business for redemptions and we really didn’t need to dig into that.

Sloan Bohlen – Goldman Sachs

Okay. And then Brett, I just had one question about a comment you made. Maybe kind of refresh us as to what the cross-selling opportunity is from taking on $55 billion of assets under management and what that means for your other businesses, whether it be brokerage or appraisal? I think you referenced a 65% number. I was wondering if you could kind of elaborate on that.

Brett White

Sure. And the synergy runs both ways. So let me start with the side that you didn’t ask about, but I think it’s equally relevant. If you are inside a real estate investment management company, the perfect world for you is perfect information on the asset class that you trade. And most investment management – real estate investment management companies don’t have that, but they covet it. And in this transaction, we are able to bring the ING funds over and their dedicated teams over, bolt them on to the services company and bolt them on to proprietary research and other things that they will find very, very helpful in their investment strategies.

And if you were to talk to any of them and at some point you get to meet them at our Investor Day, perhaps next year, that’s what they will tell you, is they are very, very excited about the idea that they are with a firm now that had deep, deep knowledge around the asset class. Going the other way, the investment management company is a client and they purchase a huge amount of services each and every year from firms like us.

Historically, our penetration has been around 65%. That, of course, is generalization and it moves all over the place. But it’s better than half and less than three quarters of the business that they put out, we get. It is important to note that in the investment management company all the folks in the property teams or the fund teams have no interest financial otherwise in the success of CBRE, they don’t own stock, they don’t have any of those things.

So their incentives are purely around the performance of the fund they manage and we believe that we ought to have 65% share in every service we sell to everybody. We don’t. We have some selling to do. But investment management folks are smart and they believe that about that percentage of the time they are better served using CBRE and that’s the two-way flow of synergy.

Sloan Bohlen – Goldman Sachs

Great, all right. Thank you guys for doing the call.

Brett White

You bet.

Operator

(Operator Instructions) And next we have Brandon Dobell with William Blair. Please go ahead.

Brandon Dobell – William Blair

Thanks, maybe dovetailing off the last couple questions. How did the retention on the portfolio manager level shake out for you guys when it was all said and done?

Brett White

Yes, again. I will let Jim give you the granular detail. I’m not aware that we lost anybody at any level other than those folks that were redundant, based on the two platforms. But, Jim, did I miss someone?

Jim Groch

No, nothing that comes to mind really. I would say it was a very, very smooth integration in that regard. There’s some overlap in a couple of areas, but those were modest.

Brandon Dobell – William Blair

Okay. And then taking that one step further, what kind of timeframe should we think about for you guys to get all the back-office marketing, all those kinds of functions or processes squared away, integrated, and streamlined down to the usual CB mentality of earning a business? I guess embedded within that is now you’ve had a little more time to spend with the people there, do you see more or less opportunities to kind of get all the global assets on the same platform and be more efficient or is it going to be tougher to do that?

Brett White

Yes, I’ll give you two answers on that and then I’ll let Gil give you the technical. First, subjectively or just looking at the business globally, the integration of those items you discussed, those systems, platform marketing, that is pretty much done. We have been working on that for nine months now and it has gone very, very well. Of course, the test is on that question is when will you see the merger-related charges burn off. And Gil, would you answer that?

Gil Borok

Yes. That, Brandon, I think most of it will be done by June. We could see a little bit in the third quarter next year.

Brett White

Okay. And then in terms of the way we look at the business and we all take advantage of the opportunities that are out there in these two businesses, we are doing that today. The executives at the ING REIM business have been very much in dialogue with our executives. They understand exactly what their roles are. That was part of the deal for them. They needed to understand how all this would work. I think it’s fair to say that in Europe, in Asia in the securities business, if you were to talk to these folks today they would tell you that they are off and running and are very excited about that.

Brandon Dobell – William Blair

Thinking about the funds, a couple questions there. One would be within the global mandates. How do I think about the different geographic concentrations or exposures? And then I’m not sure what the right way to ask this question is, but as you look across the ING business, are there big chunks of funds that are nearing end-of-life, those kinds of things?

I guess just trying to gauge the risk of a decent chunk of assets walking away from you guys. Sounds like it’s not too much of an issue given with how much time you spent with it. But trying to gauge if there is if we should be asking question in ‘12 or ‘13 if there’s decent funds that are coming up for end-of-life?

Brett White

Right and I will let Jim give you the specifics, but again generally this process that ING and their dedicated teams just went through seeking consent from these LPs and separate accounts really fleshed out any investor that had any angst about remaining in these funds. This was their time to get out, and as Jim mentioned, no one did and no one material did.

The burn off of some of these funds, you know, they have open ended funds which live forever. And they have got closed end funds that have a termination on them. Jim, do you want to – do you see any redemptions coming down, large ones coming down the road next year?

Jim Groch

You know there are a couple of closed end funds that are coming up from time to time year-to-year, but nothing of no real heavy concentration. I think as I look at a couple of funds that are coming up, I think extensions are more likely than not. The business, particularly the European business, is more heavily weighted towards open ended funds. So I think there will be new capital raised. I think there will be – there is potential for some closed end funds over time to be realized. But nothing significant or worrisome and no huge concentration in the next couple of years. So I think that picture looks pretty good.

Brett White

And I should also mention that one of the terms that Jim negotiated on our behalf was to create an exclusive mandate with ING for 10 years. Anything they do in the real estate investment management space, they do through us. That’s a very important term because they are a very big player in these funds. We know that we will have their investment now for a decade, which is pretty terrific.

Brandon Dobell – William Blair

And then maybe dovetailing all that for a second. As you looked at the performance, I guess, kind of year-to-date or maybe a different way of asking Will’s question, has the AUM capture or AUM performance been above expectations or is it more on the margin side of the ledger?

Brett White

Just on financial performance. Not AUM.

Brandon Dobell – William Blair

Okay. Fair enough. And final question, I know that there is going to be transactions fees associated with the portfolio. But over what timeframe should we expect to see other kinds of revenues whether it’s leasing or property management opportunities show up out of these funds for you guys?

Brett White

Yes, it’s a very good question. It will work this way. There will be or are at the moment opportunities for the ING dedicated teams to move business now. So if they have been using a service provider that they are unhappy with or they feel for whatever reason CBRE would be a better fit for them, they can do that now. And you may recall, Brandon, that we have made some acquisitions in Europe off-late specifically with this in mind. We had purchased a retail property management business. We are purchasing some people. We are doing things to make sure that we get our share of that business.

But I would say that the bulk of it will move as these opportunities move. So they are not all available today. They are locked up with other service providers. But when the time comes that the business can be moved, gracefully, that’s when I suspect you’ll start seeing more of these come through. But frankly speaking, I would be disappointed if we didn’t see some of them by the end of the year.

Brandon Dobell – William Blair

Okay. Fair enough, great. Thanks, guys.

Brett White

Yes.

Operator

And at this time, we have no more questions in queue.

Brett White

Right. Thanks everyone for your time. We will talk to you again at the end of the fourth quarter. Bye-bye.

Operator

Thank you, ladies and gentlemen. That does conclude our conference for today. Thank you for your participation and for using AT&T Executive Teleconference. You may now disconnect.

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