Nippon Telegraph and Telephone Corporation (NYSE:NTT)
Q3 2016 Results Earnings Conference Call
February 05, 2016 03:00 AM ET
Yasutake Horinouchi - IR
Jun Sawada - Senior Executive Vice President
Hiroshi Tsujigami - SVP, Corporate Strategy Planning Department
Takashi Hiroi - SVP, Finance and Accounting Department
Daisaku Masuno - Nomura Securities
Satoru Kikuchi - SMBC Nikko Securities
Tetsuro Tsusaka - Morgan Stanley
Daisuke Oshidari - JP Morgan Asset Management
We will now start the financial results presentation meeting for the Third Quarter for the Year Ending in March 2016 of NTT. Thank you very much for your participation today out of your busy schedules. I am Horinouchi of IR office, today’s moderator.
First of all, today’s members are the following: Mr. Sawada, Senior Executive Vice President, Mr. Tsujigami, Senior Vice President of Corporate Strategy Planning Department, Mr. Hiroi, Senior Vice President of Finance and Accounting Department. Further relevant members are participating from Corporate Strategy Planning Department, Finance and Accounting Department, and NTT East, NTT West, and NTT Communications. As for today’s presentation, we will be presenting following the presentation material posted on our Company’s IR website. Further, presentation material page one has cautionary statements for you to have a read at.
Today’s presentation is distributed real-time on our Company’s IR website. Further, we also intend to distribute today’s presentation on demand at a later date. I ask for your understanding beforehand. As to today’s schedule, first of all Mr. Sawada, Senior Executive Vice President will make a presentation first of all, and then we would like to entertain your questions. Mr. Sawada, please.
This is Sawada. Thank you very much for your continued support and for your time today. So, let me use the presentation material. Please turn to page two. Let me give you the highlights for the third quarter of fiscal year 2015. In one word, when we announced the first half results, the content or the trend is the same. DOCOMO is in a recovery trend. And overall, we are enjoying higher revenue and higher profit.
First, you see a graph on the left side. First half is the operating revenue. Operating revenue overseas business grew and DOCOMO’s mobile communication revenue, Smart Life area, and SI business revenue increased, which pushed up the domestic business revenue and therefore, the operating revenue is up 3.8% or ¥312.8 billion, which is an increase for the sixth consecutive year and we marked the record high third quarter since we started disclosing our quarterly results in fiscal year 2004.
Now, the lower graph is the operating income. Cost-efficient business management in regional communications and mobile communications segments led to an increase of 23.7% year-on-year or ¥215.6 billion to ¥1,126.6 billion.
Now, there are three highlights. The first point was the higher revenue and income. Second is the expansion of global cloud service. Overseas sales is up by ¥273.5 billion year-on-year to ¥1,422.6 billion and ratio to consolidated sales is 16.7%, up 2.7 percentage points showing steady growth. Now, the foreign exchange rate impact is ¥39.7 billion of this.
Now operating income: Overseas operating income increased by ¥8.9 billion year-on-year and accumulating profit steadily.
Third point is the enhanced operating revenues from network services. Mobile and fixed line broadband services are steadily expanding NTT’s user-base. In mobile services, data plan from second device usage of tablet is strong, and net increase is up 40% to 3.01 million. In Hikari Collaboration Model, net increase reached 510,000 and the number of subscribers reached 3.48 million. With the increase of Hikari collaboration service providers and improvement of sales and marketing structure, number of newly opened connection was 280,000 in third quarter alone, which is 50% increase from second quarter. So quarter-after-quarter, this newly opened connections is increasing.
Next is Wi-Fi, which companies and local governments are actively implementing as useful information service tool. Number of Wi-Fi area owners doubled from the end of last fiscal year, reaching 322 and is growing steadily. Cost reduction in fixed line and mobile access was ¥346 billion. Our medium-term target is ¥600 billion. Our cost reduction is ¥346 billion compared with third quarter of fiscal year 2014. We will further improve operational efficiency and promote cost reductions thoroughly.
Now, please turn to page three of the slide.
Now, the outline of the consolidated financial results was explained earlier. Let me talk about net income on this page. With the increase in operating income and reduction in tax rate from the tax system reform, net income was ¥604.1 billion, up 34.3% or ¥154.1 billion year-on-year.
Now, by segment results, please turn to page four.
First of all, to the left you can see operating revenues, and then to the right operating income. If you look at the bottom part of the bars, this is the regional communications segment. The left-hand side revenues -- the decrease trend has continued, but if you turn to the right, as you can see, with reduction in marketing costs and with reduced depreciation costs due to investment efficiency gains, profit increased 76.6% or ¥100.7 billion year-on-year. This is as a third quarter record high profit result ever since 2004, since we started disclosing quarter results. The fourth quarter, we will experience for the first time in substance moving health [ph] season, a peak business season since the start of the Hikari Collaboration Model. And there are some uncertainties in open and cancelled connections, but we intend to continue to work on multiple cost reductions and operational efficiency gains and aim for target or higher level profits.
And then long distance and international communications, overseas business grew steadily and revenue increased 15.8% or ¥228.1 billion. Profit-wise, primarily in Dimension Data, the existing business sales expansion has progressed significantly, and this resulted in increased utilization; and due to up-front investments into growth area, profit decreased 6.5% or ¥5.7 billion year-on-year. With this being at the bottom also for Dimension Data, the working -- teams are working to pursue cost efficiency and profit and revenue enhancements, and there are supports being put into these activities. Thus, we expect to achieve profit increases going forward.
Continuously in Japan, we will continue to work on thorough cost reductions and in overseas, we will promote cross-selling and efficiency gains through cross-horizontal group efforts and we want to secure profit that we target at. And then, you can see, above the mobile and data communications businesses in the bars, you have already heard the results of the respective companies, but just to go over the key points.
For the mobile communications, the new billing plans revenue decrease impact improved and we also see the usage of second mobile devices resulting in increased packet revenues and these resulted in increase of mobile communications service revenue increase. And Smart Life area also trended favorably. And overall, operating revenues were pushed up further with the network cost reductions from investment streamlining. We worked on cost reduction efforts. Therefore, we increased profit 16.8% or ¥98.2 billion. Last fiscal year, we saw a big decrease in profits, but since then, we are now recovering in a favorable situation.
We are back to the year before last year’s situation. In fourth quarter, we will be seeing the peak season and there will be also actions following the taskforce discussions. There are some uncertainties, but by working on cost efficiency gains, we want to aim at profits at or above the target level. In data communications segment, we saw profit increase 30.5% or ¥17.3 billion year-on-year. We will continue to expand sales and contain unprofitable transactions to secure target profits.
And then page five of the slide please.
This is revision to the NTT Holding Company non-consolidated forecast. Today NTT DOCOMO announced a ¥350 billion TOB of its own shares; to which, like we did the last time in August 2014, the board resolved today to respond amounting to ¥300 billion worth of DOCOMO shares we own. Further, today we decided to receive from NTT East ¥100 billion of special dividends.
Consequently, the dividend from NTT East will be booked in operating revenues and gain from the sale of DOCOMO shares will be booked in extraordinary profits. And with this, the net income has been revised ¥393 billion upwards to ¥681 billion compared to the forecast, announced earlier. But because these are intra-group transactions, will hardly affect consolidated performance. Thus, we are not revising the consolidated performance forecast. These attempts are intended to improve the balance sheet of the holding company. As for cash, taking into consideration financial circumstances and capital efficiencies, like in the past, like -- as we have been doing, we want to utilize cash for growth investment, enhancing return to the shareholders, repaying debt.
And then page six, finally on dividends.
The board today resolved to increase the year-end dividend by ¥10 over the dividend forecast at beginning of the year to ¥60, making the total dividend for the year ¥110 per share. This resolution was made taking into consideration the prior mid-term plan, which targeted EPS target of 60% or more growth by fiscal year 2015 and announced in fiscal year 2012, and it has become certain that we will achieve this target, and also taking into consideration the new mid-term plan that we announced in May 2015 towards which performance is progressing favorably. Under the new plan we intend to grow EPS to ¥350 or higher in fiscal year 2017. As a result, we decided to make this dividend increase.
This is all for my presentation.
[Operator Instructions] From Nomura Securities, Mr. Masuno, you have the first start.
I actually have four questions, but let me begin with the first one. You’ve announced the non-consolidated -- increase in the non-consolidated dividend revenues. And also you’ve also announced that you’ll be responding to NTT DOCOMO’s share repurchase. As a result, net profit has actually increased by as much as ¥290 [ph] billion, I believe. So as a result, then on a non-consolidated basis, NTT Holding’s surplus earnings, how much do you think you’ll have at the end of the year? Of course if I do the simple calculation, I suppose I can do that, but how much of surplus will you end up with at end of the year? Actually, it should be ¥1 trillion I think. And then from the next fiscal year onwards, you’ll be paying dividend based on those surplus and also you might actually finance your share repurchase program and so, you’ll be able to draw down this double surplus. Is that the case?
Well, acquisitions to realize investment for growth and also we have about ¥700 billion of debt on a non-consolidated basis. So, we have to take a look at the overall portfolio and decide the usage of the surplus.
Now as far as next fiscal year is concerned, the net profit -- net income for the NTT Holding Company on non-consolidated basis should actually increase as well. So, you might not use that, but -- next fiscal year, but you might be able to use that in the following fiscal year?
Yes, I think that is the case. And also, the Japanese government’s budget proposal already reflects the sale of government-owned NTT shares, I believe. And so, I think we would like to be prepared for that. So this is included in this initiative.
When you announced the first-half results, you said that if the government were to release government-owned shares, you would like to repurchase those shares. I think you did announce your intentions back then after the first six months. Now, this time around, the government has already officially inked-in the sale of government-owned shares in their proposal, so you will be responding, you will be carrying out your share repurchase, you’ll be buying back from the government?
So, inclusive of the preparation for that, yes, we are responding to NTT DOCOMO’s tender offer in relation to their share repurchase.
Secondly, your regional communications segment is seeing very strong growth in terms of operating income. On a cumulative basis, you have about ¥230 billion or even more. And on quarterly basis, from the first quarter, second quarter onwards, the operating income has been about between ¥70 billion to ¥80 billion. And so therefore for the fourth quarter, yes, this is the season when people actually move and I understand that marketing will be much more robust. So it’s going to require more expense during the fourth quarter. But, how much seasonal factors do you envision for the fourth quarter compared against the first three quarters; how much impact will there be of these seasonal elements? And also, if the increase in the wholesale fiber increases, then you’d probably be able to -- you’ll not be able to reduce your marketing cost even more. So, how do you see the seasonality, the impact of seasonality for the fourth quarter?
Well, generally speaking, in a given year, in an ordinary year, half of the net increase comes during this very busy season. But, as you pointed out, we are now pursuing strategic collaborations, the wholesale fiber. So therefore, there isn’t that much share, if you will, retail fiber that we’re involved in. Now, we have more than 230 partners for Hikari Collaboration, and we are not trying to support these partners who are providing Hikari Collaboration or wholesale fiber. So that being the case, offering marketing support to these partners, we have to identify and calculate how much expenses will be required to offer such support. So, compared against the past quarters, I would imagine that the expenses for the fourth quarter will be somewhat larger. As you are aware, we were thinking of 6 million, but now it’s 3.7 million. So, the overall progress at Hikari Collaboration has been somewhat slow.
So, it depends on how much consumers or customers will flock to Hikari Collaboration during the fourth quarter. So, this is the first experience for us. So, we are being very conservative. The target profit, we’re likely to exceed the target profit, I would imagine. However, at this juncture, it’s very difficult to -- the range of exceeding of the target profit is somewhat not transparent.
I might be somewhat impatient, but I think at the end of February, you will announce your business operation plan for the next fiscal year. And I know that this is the first year for Hikari Collaboration; and for the first year, I think you have had a positive impact of reducing marketing expense. In principal, do you believe that Hikari Collaboration will still have further impact in terms of profit during the next fiscal year as well?
Well, in principal, I think I talked about this when we announced our first quarter results. In two to three years’ time, 30% reduction in marketing expenses could be envisioned for the first two or three years. So that being the case, we still have room to reduce marketing expense for the next fiscal year. However, at the same time, we also have to offer support to our partners. And also if transfer customers are very large, then we are actually going to be losing some of our base of profitability. So, it’s all about the balance.
Thank you very much. Next, I would like to ask about your global business operating profit, operating income, ¥8.9 billion in increase for the first nine month. I think after first half-year, it was ¥5.4 billion. So therefore, I think even for the last few months, you have seen increase of ¥3.5 billion. So therefore, on a quarterly basis, operating income for overseas business has been growing by about ¥4 billion. Now, I was looking at Dimension Data, from October through December, operating income for Dimension Data during these three months. Based on international accounting standards from October through December, I think operating profit is in positive territory for Dimension Data, based on international standard, but not on U.S. GAAP. So steadily, I think cost reduction efforts are beginning to bear fruit and they’re beginning to have positive impact on the quarterly results for Dimension Data. That is my estimation. Can you confirm that?
Indeed, as you point out, for the last couple of years, be it cloud or be it hosting type of services, we have made shifts. And in terms of human resources and platforms, we’ve had to invest so that we could make the shift. And now, we’re beginning to see the benefits of those efforts we made in the past.
When we set the human inter-management strategy, inclusive of the working teams that will support these efforts, result there from fiscal year 2013 through fiscal year 2017, our profit is more skewed toward the latter half. So, it’s like an airplane taking off. And so, I think that’s where we are at; we are about to take off. Now, as far as revenue is concerned, they are doing very well. Operating revenues are expanding, sales are expanding; they are capturing and acquiring customers. And so if further cost efficiency efforts can be made, then I think we’ll be able to further improve the profit. So, we have a very positive take.
Thank you. My last question is about the change in depreciation method. In line with the change, then I think you’re probably going to reflect various items, cost items to offset the increase in profit. As time is approaching, are you able to share with us more concretely how you intend to handle this situation; can it be more concrete?
Thank you. Hiroi here, I would like to respond. As far as the change in the depreciation method is concerned, we are still in the process of studying that, so we have not made any official decision about this matter. Now, in the event that this is to be realized, then we have to consider various things. But at this juncture, as we have consistently mentioned, we have certain things in mind. For example, fixed line telephony-related facilities, with regard to that, we will depreciate those assets as far as possible, and also we want to make efforts so that cost efficiency can be improved. So therefore, as far as details of this particular matter are concerned, perhaps we can talk about that at a separate time. Maybe if we’ll make projections about the next fiscal year, perhaps. And so, we hope we will be able to share with you some information at that juncture.
Next is from SMBC Nikko Securities, Mr. Kikuchi; your questions, please?
I have two questions and my name is Kikuchi. The first question is FLET’s Hikari Collaboration Light menu, Light program that started from January, in my view or in your expectation, and I’m sure it is up to the partner whether the partner will sell aggressively or not, but what is your expectation on your financial performance? What will be the impact on your financial results? And what will be its percentage to the Hikari Collaboration Model? I also want to ask FTTH net add, just looking at the third quarter rather than FTTH net add, a collaboration add seems to be greater. You may not be looking at FTTH only anymore, but FTTH in itself is net decrease. Is this kind of operation acceptable for you?
This is Tsujigami responding, and I want to talk about Hikari Collaboration question. The Light plan, yes, as you pointed out from January, we started wholesaling of the Light plan. The spec is a bit different compared to the Light plan we sell on retail basis, but the point is to develop new demand for fiber. Light, being light users who do not use that much IP; and there are also heavy users of Internet, but there are also usages that use very little internet. For example, wanting to watch video on CATV and on that occasion wanting to use fiber lines; this is one usage. And then home security companies, monitoring signals, which means very little packet usage, but in a sense as long as the cost is low, by combining with the companies service will be a good match and will be good usage. Depending on the partner’s demands and needs, we develop these menus. And these were the customers we have not been able to reach conventionally by NTT East and West. By selling under this new way, we want to develop new demand. But as you point out, how much can we sell, this is something we have to yet to find out because this has just started recently. I would like to refrain from commenting about the outlook.
And then, FTTH up to the third quarter, 440,000?
Yes. As you point out, Hikari Collaboration was 510,000; retail is net decrease of 70,000. In other words, this means out of the new opened connections, collaborating Hikari proportion is becoming higher. And recently, in December, out of new openings, new connections retail versus wholesales is 50-50. This is stock business. The situation will not change overnight, but gradually collaboration side, we expect to increase. And this is exactly what we are aiming for. This trend is as we wanted to see happen.
Thank you very much. And I want to confirm about your earlier part comment, the Light menu ARPU would be down. How much is the ARPU decrease impact?
Which means voice, the regular plan would be better. You don’t want to aggressively sell Light menu. This is how I would expect.
But what is the situation up to the end of January, and things may still develop from now on going forward, but what is the proportion of Light, end of January?
As I mentioned earlier, the Light menu might give you the impression of downgraded menu, but to repeat, heavy users of internet choose the flat menu. And so far, mobile carriers and ASPs were choosing these menus, but for small and medium sized SIRs and CATVs and security companies, their users are light users and very light users, but they still have fiber demand. But catering to this demand, we want to capture new demand for Hikari Collaboration Model. If heavy users of the internet choose this menu, the price will be more expensive and there is no such need for concern.
And this is Sawada commenting. And although we do not disclose this, in reality, we started from January and hardly have sold much yet. Therefore, going towards the end of this fiscal year and into the next fiscal year, we do not expect a major impact as you may be concerned.
And my second question. You have the consolidated financial projection not revised this time, but progress is actually pretty good. And DOCOMO -- and they are trending slightly upside and it’s almost visible that their result will be on the upside according to their financial presentation meetings. But what is your plan now? If there are the unlisted companies that would have fourth quarter major costs or anything that we have to expect as risks, please let us know.
This is Sawada responding. Whether there will be any major risk, we do not expect anything material. But as you know about the market, DOCOMO side has been enhancing share pack; and next week, competitors will be announcing financial results. And whether the competitors will follow DOCOMO’s movement or not and towards the high season what will be the sales points by the competitors, the usage of costs at the end of the year could be different. Fourth quarter is also heavy in CapEx spending in some years. And fourth quarter is a highly volatile quarter, although the word I chose may not be that appropriate, some years we can book ¥200 billion profit or some years less than ¥100 billion profit; it’s quite volatile, can be varied. And this since we do not expect a major risk. Direction wise, we think we can secure profit more than we target for. And this is also the view of the holding company too. But we did not go all the way to revise the forecast. We wanted to follow through how things go.
[Operator Instructions] Next question is from Morgan Stanley, Mr. Tsusaka. The floor is yours, sir.
First of all, increase in dividend; I wanted to ask about the increase in dividend. I suppose you are confident about the outlook of your profitability and that’s why you have decided to announce the increase in dividend and that is to be welcomed. Now, it’s from ¥50 to ¥60. The full year move was ¥110. So therefore, the full year dividend is going to be increasing by 10%. And as far as the EPS is concerned, I think it was ¥298. Right now, you have not changed the EPS outlook either. So therefore, if you add 10%, I suppose it will come closer to ¥230, if I do the calculation. So, I think that is the realistic range that you’re likely to round off the year. So, I guess what I wanted to ask is this: The amount or the percentage of increase in dividend and the actual profitability of your business and the upside to your profitability, I think they’re linked. Is that correct?
I suppose it’s linked. But as far as your projection is concerned, when we made the projection after the first two quarters, I think the EPS outlook was ¥211 and then we made an upward revision at that time. Yes, I think that was about 4.5% increase, wasn’t it? And so after the fourth quarter how much profitably upside is there, I suppose that’s what you wanted to ask. Now Mr. Unoura after the first two quarters said that if we go beyond 70, then we should actually aim for increasing dividend and that’s in comparison with fiscal 2011. 60% is something that we can actually exceed, but 70% that will be ¥212. Will we go beyond that, will we exceed that? Well, I think we’re not going to exceed and that is why we decided to announce increase in dividend at this juncture.
I might be somewhat impatient or hasty in asking the following question. So ¥60 for the second half, considering your operation in given year I suppose -- so, ¥60 in the first half and ¥60 in the second half, I think that will be the good starting point. Is that the starting point for the next fiscal year; is that how we should see this?
The starting line is ¥110 right now, we’re at the ¥110; so ¥60 in the second quarter.
Then what about next fiscal year?
I think we have to take a look at the prevailing situation at that time and then act accordingly. But, we will do our very best.
And another thing, I was following your payout ratio over the years. On average, it was about 35% over the years. I realize that you do not have a payout ratio target per structure. But for some reason, it’s always hovered around this range. So, if that is the case, then from next year onwards -- and I know that you’re considering change in your deprecation method. And in line with that, net income might be affected starting from this fiscal year. So, if that is the case, I was wondering how much fluctuation can we envision by putting that aside? Do you believe that the change in the environment could actually be reflected in the way in which you pay out dividend, or am I being too bold here?
Mr. Tsusaka, as I mentioned midway, payout ratio is simply the outcome of our activities; that is how we see it. So therefore, so at the end of the day, payout ratio is at around mid 30% range. However, if we have a major change in the system and if this leads to increase in operating income, is that going to translate into dividend? I think the basic thinking is that we consistently continue to increase our dividend. In other words, we want to make sure that our shareholders are willing to hold on to our shares over the medium to long term. That is our thinking. And so, it’s not going to translate into increase in dividend in a straightforward manner.
Next, you have decided not to revise upwards your consolidated projection. I know that this is based on a series of processes and your consideration and you decided not to make upward revision. And this relates to your subsidy from NTT DOCOMO, a listed firm; this company is the greatest contributor to your operating income. And depending on the level of the operating income at NTT DOCOMO, it will affect the group. And I know the NTT Holding Company is in a position to instruct NTT DOCOMO that being the case. And in the fourth quarter, if the operating income is ¥140 billion, then DOCOMO can actually already achieve operating income ¥820 billion after the full year which they had set as a medium-term target. Now, as far the holding company is concerned, for NTT shareholders, it’s better that the NTT DOCOMO generates profit. So, are you going to instruct DOCOMO to generate as much profit possible? For example, if the medium-term operating income at DOCOMO could be achieved two years before hand, then I think this will help to improve the motivation of the stakeholders. So if that is the case, I think NTT Holding Company should actually be involved in such decision-making process at NTT DOCOMO. What are your thoughts?
You mentioned ¥820 billion. Last year, DOCOMO’S operating income dropped by as much as ¥100 billion. So therefore, I think in principal, NTT DOCOMO is still in the midst of a recovery process. So that being the case, of course, it’s important that DOCOMO generate profits where possible and that is our position. So therefore, be it cost-reduction or be it alleviating any wasteful capital investment, I think we are continuing to drive them to do that. And we are still vigilant. We do not intend to relax our instruction. So, I think DOCOMO is still in the midst of its recovery phase.
Next is JP Morgan Asset Management, Mr. Oshidari, your questions please.
I have two confirmation questions. The first is Hikari Collaboration. Inclusive Hikari Collaboration, the cost of regional communications you will be changing to sales and marketing support cost and you will be seeing decrease in direct marketing cost, and you will be spending more in marketing support costs, as Mr. Sawada mentioned in his presentation. But what is this nature of this cost? And compared to the conventional marketing cost, is it paid per unit or how is the money spent differently and what is the amount per unit sold different? And my second confirmation question, fiscal year 2017 ¥350 EPS target, ultimately this would be achievable including at the deprecation accounting rule too. And when you have full year results, I’m not sure whether this will amount to the mid-term planning all over again. But, will you be revising upwards your forecast? This is my second point of confirmation.
Your first question; so that the partners can sell much more easier and more conducive for them to sell, we have the system API now under preparation or 24 hour repairs and maintenance, 24 hour repair so that the people will be dispatched on site 24 hours a day. And seasonally there will be campaigns. Thus, nature wise, it’s not like in the past where there will be incentive paid per sales transaction or adding of amount being paid. Cost in order to establish the foundation for work is the kind of cost we’re spending on. I hope this answers your question.
Yes. It’s not per sales transaction, but to make sales more conducive for the partners developing sales infrastructure. That is what you’re building and spending on?
Yes, this will be a platform to support sales. And if you allow me to confirm, one day, we will not be surprised to find out how much cost you have spent. That will not happen, as the unit of money or the order of the amount of money we are spending is at a different level. You will not be surprised. Now, secondly EPS, this is not just limited to EPS because this includes depreciation cost review. There will for sure be a revision. But in that occasion, how much are we going to stretch the target number, how much are we going to raise the EPS target, we will continue to review. And this is the stage we are now in. In the end, a revised number will appear to be a grown number, but compared to today’s situation, will the number be stretched? We are not yet in a position to be able to comment.
How much are you going to stretch? That is also a part of the question. But more importantly, I want to know more simply on an accounting basis when you review revised depreciation method. And other than the depreciation cost rule, your operation is strong in regional communications mobile business. These strong business results will be reflected in the goal as well, right? This is the simple question.
Yes. Whether this is a revision to the midterm plan or would it be a partial revision to the target, in any event, we will be reviewing.
Are there any other questions? If not, then with this, we’ll have to conclude the presentation of the presentation to financial results for nine month ended December 31, 2015. Thank you for your participation. Thank you very much, ladies and gentlemen.
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