Dassault Systemes's CEO Discusses Q1 2013 Results - Earnings Call Transcript

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Dassault Systemes SA (OTCPK:DASTY) Q1 2013 Earnings Call April 25, 2013 9:00 AM ET


François-José Bordonado – Vice President - Investor Relations

Bernard Charlès – President and Chief Executive Officer

Thibault de Tersant – Senior Executive Vice President and Chief Financial Officer


Josep Bori – Exane BNP Paribas

Zack R. Ajzenman – Griffin Securities, Inc.

Michael J. Briest – UBS


Thank you for standing by and welcome to the Dassault Systèmes 2013 First Quarter Financial Results Call. At this time, all participants are in a listen-only mode. A short overview will be given followed by a question-and-answer session. (Operator Instructions) I must advice you that this conference is being recorded today.

I would now like to hand the conference over to François Bordonado, Vice President, Investor Relations. Please go ahead.

François-José Bordonado

Thank you, Vivian. Thank you for joining Bernard Charlès, CEO; and Thibault de Tersant, our CFO, for our 2013 first quarter conference call. We held our webcasted presentation in London earlier today and have placed the presentation on our website.

Two brief reminders before we begin. Dassault Systèmes’ financial results are prepared in accordance with IFRS. We have provided supplemental non-IFRS financial information, which is explained in the IFRS and non-IFRS reconciliation tables included in our earnings press release. Some of the comments we will make on this call will contain forward-looking statements, which could differ materially from actual results. Please refer to our risk factors in today’s press release and in our 2012 Document de référence.

I would now like to turn the call over to Bernard Charlès.

Bernard Charlès

Thank you, François-José. Thank you all of you for joining us here on the webcast held earlier today. This morning we reported first quarter financial results, well in line with our objectives and reconfirmed our full year financial objectives. I think we set realistic goals and we achieved them.

Our business focus is on expanding our addressable market and advancing our purpose with our 3DEXPERIENCE strategy. Over the course of the first quarter, I traveled extensively and met with a number of customers and partners. So our discussions, it is clear that they perceive high value of 3DEXPERIENCE in its ability to help them manage the complexity of the business in a comprehensive manner connecting all areas.

We are also making selective acquisitions of companies well aligned with our addressable market expansion and complementing our Industry Solution Experiences. This morning, we announced two small, but important technology acquisitions.

In summary, we are working to deliver on our market strategy on extension of our purpose and this will be visible to you during 2013 in our research and development deliverables with our ambitious roadmap. So stay tuned here.

Let me turn briefly to the first quarter performance. I will leave most of the financial comments for Thibault. And surprisingly, the market environment remained soft, customers’ visibility is reduced and this results in uncertainty and hesitation. So within this context, our non-IFRS results were satisfactory, although our ambition remains higher. Software revenue increased 8% in constant currencies. Our operating margin was stable and our earnings per share increased 10% fully benefitting from revenue growth.

Turning to our regional performance, there were bright spots and areas of weakness. Asia was higher by 8%, followed by the Americas at 7%, and Europe with 6% revenue growth in constant currencies. Looking at software alone, software revenue growth was highest in the Americas, followed by Asia and Europe. In Asia, the results were mixed. India, particularly good quarter. We have strong relationship with both OEMs and engineering service firms working with multinationals and this helps to drive our results this quarter. In addition, we are strengthening our coverage through our indirect channels building our VAR networks.

Korea was also an area where we had a strong quarter. And the softer side was China, but it represents a very good potential for us. So we continue to strengthen our resources. Finally, our results in Japan came in pretty well aligned with our plans. So, here again, not an area of concern.

In the Americas, software revenue increased double-digits in constant currencies. We are seeing good progress in some of our businesses, but we remained focused on strengthening our coverage in total.

In Europe, the slow start to the year was evident. At the same time, we did observe some bright spots. The UK had a very good performance. And Germany, our largest country in Europe, delivered solid results. I think we are well positioned here too.

Looking at our growth by software applications, there were no surprises. Solid work delivered growth of 7% in constant currency, driven largely by recurring software revenue. While EBIT show stronger annuity growth in the fourth quarter of last year, the result in the first quarter and over the last few quarters in total are clear indicator of the weakening economy backdrop.

During the first quarter, our specialized applications performed well. The manufacturing sector with DELMIA has begun to show more opportunities for growth, in particular thanks to our DELMIA applications based on our V6 Architecture.

And in the simulation space, traction for SIMULIA remains strong and is visible across number of industries and in the growing size of relationship with customers. Some examples of excellent new business include Mazda’s adoption of SIMULIA. To enable them to better balance performance and weight of [all steel] car with Isight technology. Isight is the name of the simulation products of SIMULIA.

This morning’s acquisition in simulation further our expertise in this space in Sweden. Autoliv, manufacturer of safety systems, has adopted our 3DEXPERIENCE platform and is using ENOVIA application to improve efficiency with over 9,000 users on a global basis.

O’STIN Russia’s largest apparel retailer in terms of sales has selected our 3DEXPERIENCE platform to support their rapid growth by providing them with a unified environment for design, sourcing and supply chain management.

My final example is SFR, a part of the Vivendi Group and a leading Telecom provider. They are using our Square Clock solution, now called Swedavia store to help them setup new merchandizing campaigns in the stores quickly, and secondly, by giving to the local team in the stores the ability to empower the design of the store themselves. As a result, SFR is now able to literally manage in 3D 850 point of sales and achieve significant improvement in its operation.

First, in the planning, with a 25% reduction in the cost of merchandizing production on logistics, and then secondly, in getting these point of sales operational in a shorter timeframe, thanks to a 50% reduction in deployment time. This is really – reality in terms of adoption by users in the store.

Now today, I would like to spend a few minutes illustrating what we are doing with energy, process and utilities, EPU companies. As we know natural resources are not unlimited while user demand for energy keep rising, adding to this complexity are concerns about costs, safety on the environment for EPU companies, in addition to what is of importance to their end customers experience they are critical challenges to manage such peaks in demand, cost addition of operation, compliancy and those are complex issues and to do all this within the context of ever increasing energy consumption.

So how can we help them change the game? In the last years, we have been introducing two industry solutions experience; one optimized planned construction on sustainable wind turbines. With the demand for energy expected to rise very significantly over the coming decades. There is a need to bring energy plans on faster, on budget, safely with the lowest cost of operation.

We follow optimized plant construction industry solution experience, companies are able to reduce time to start-up on cost using digital plant construction planning. Similarly wind turbine operation need to improve in order to wind energy take place among key energy sources, our sustainable wind turbine industry solution expense is designed to help customers speed time to market with improved reliability on lower cost.

Looking at our customers let me share some example, the first example is ENOVIA, a nuclear specialist in the United Kingdom working with our partner Tata Technology. They are implementing our optimized plant construction industry solutions on our 3DEXPERIENCE platform as well as ENOVIA application software. The business objective is managing first among data for design and construction as well as having complete compliance of information for compliancy and governance.

Moving to China, the leading engineering procurement and construction company in hydro power, CHIDI is using our industry solutions as well as a number of our brands to enable it to deliver plants on-time and on-budget and to enable a massive collaboration effort across projects and departments.

Envision, a leading wind power company also in China is using our wind turbine industry solution experience to enable design process optimization and to be able to use the knowledge to support wind energy on shore as well off shore as you may know, off shore is much more complex.

More broadly our software solutions played to the heart of the need of the wind power sector. First, the blades required very sophisticated surface design which is a key strength of CATIA. Secondly, the blades are done in composite which also required specialized design software, which CATIA offers and finally this product required very sophisticated simulation analysis that is sufficiently robust to do the complex analysis, which we bring also with our similar portfolio.

My final example is in India, where we are working in partnership with (inaudible) to develop a 3D power grid an innovation project with the goal of designing, simulating on virtualizing a complete power grid of CT for energy, water, waste management, traffic management and more.

Now, let me briefly touch on two acquisitions, we announced earlier this morning. First, we acquired Archivideo whose technology enables a very complete and accurate representation of CT. So it expands our capabilities to plan and manage urban developments. Archivideo has a strong relationship with IGN, the French National Geographic Institute. We welcome the team under the GEOVIA with its mission of natural resources on the modeling of the planet.

The second acquisition, FE-DESIGN, is an innovator in design optimization for early-stage product development. It is a very interesting acquisition with a company we already have an OEM relationship with as we embedded some of their technology in SIMULIA. Among its customers are General Motors, BMW, SIEMENS, and Suzlon.

In our option it is the technology leader for non-parametric optimization solution. It is complementary to our parametric optimization capabilities. At this point let me turn the call to Thibault.

Thibault de Tersant

Good afternoon and good morning to all. My comments today are based upon our non-IFRS financial results. In our press release table you can find the reconciliation of our non-IFRS to IFRS data. In addition, revenue growth rates are stated in constant currency.

First quarter revenue results were solid, and were in line with our financial objectives coming in as a high-end of our growth range of 5% to 7% in constant currencies. New licenses revenue results illustrate the slow start to the year, as anticipated, it is quite understandable in the current environment for customers to take their time at the beginning of the year.

Turning to our software results the growth was 8% in constant currencies. On an organic basis software revenue increased 6% taking into account the Transcat divestiture and the Gemcom and SquareClock acquisitions. New licenses revenue decreased 2% in constant currency reflecting the soft environment, as well as the strong base of comparison to last year where new licenses revenue increased 18% in the 2012 first quarter.

The recurring software revenue evolution reflected high annual rate, continued rental activity and usage added to maintenance. In addition, we benefited from a somewhat easier comparison base. If you recall in the first quarter of last year, a portion of renewals normally recognized in that period was pushed out to the second quarter, leading to this year’s favorable comparison base.

In total, recurring software revenue increased 13% in constant currencies this past quarter and we anticipate it normalizing to about 9% in the second quarter.

As I highlighted in February at the year-end earnings results we were anticipating a weak Q1 for services and that is what we saw. We had lower level of new engagements with ongoing service work relatively stable. The gross margin as a consequence was slightly negative.

Turning to our profitability here the results are somewhat satisfactory as we delivered double digit earnings per share growth at 10% and the approaching margin was 29% essentially stable. Turning to our cash flow and balance sheet statements, I would like to make just a brief comment. First quarter cash flow increased 12% to €185 million, principally reflecting working capital improvements of €81 million and non cash P&L items of €29 million. The main components of non cash P&L items were amortization of intangible assets and depreciation of property and equipment.

DSOs improved to 79 days, slightly higher than Q4, but much improved from the year-ago period of 90 days. In light of the environment, I think this represents good progress and a good performance on receivables management.

Turning to our unearned revenue, the evolution here is well inline with our expectations and is largely organic in comparison to the end of 2012 unearned revenue is higher by 15%.

Turning to our financial objective, let me begin with our second quarter. Here we are setting a revenue objective of about €550 million, representing growth of about 7% in constant currency, quite similar to first quarter, a stable margin of about 29% and earnings per share of about $0.80 or 5% growth. Importantly, we do expect to see a positive growth evolution of new license revenue and we also anticipate that recurring software revenue should normalize to a growth rate of about 9% in constant currency in the second quarter as I mentioned earlier in my remarks.

With respect to currency assumptions, we are increasing our Japanese yen to euro exchange rate to 125 yen to euro from the former 120 reflecting the further weakening of the yen. Today the yen is above this rate at already 130 yen per euro. We are leading our US dollar exchange rate assumption unchanged at $140 per euro.

For the full year we are reconfirming our financial objective, which reflect the fact that our first quarter results were well aligned with our objectives. We are fine tuning the revenue range by about €10 million, adding €10 million to our former objective with €6 million coming from activity, €4 million from M&A, €2 million from the better activity in first quarter and €4 million coming from currency. This increase in reported revenue does not change our growth objective in constant currency. It simply tightens the range from a former 5% to 7% to now 6% to 7%.

From an earnings perspective, these changes are absorbed by an assumption of a higher tax rate and a higher exchange rate for the yen for the next three quarters. So our EPS target growth of 2% to 7% remains unchanged as does our operating margin goal of 32% on an non-IFRS basis. The first quarter non-IFRS effective tax rate was 32.4%, but for the full year we expect tax rate of between 33.5% and 34%.

Finally, we also reported this morning that the Board of Directors is proposing an increase in the annual cash dividend of 14% subject to shareholders approval and this is following two years of double digit increases in dividend.

Let me now turn the call back to Bernard.

Bernard Charlès

Thanks you Thibault. Looking ahead we see a year of significant research and development deliverables as we advance our market with 3DEXPERIENCE and work to realize our purpose of enabling sustainable innovations to harmonize product, nature and life. And we see a year of solid financial performance even in a soft economic environment.

Now Thibault and I would be happy to take any questions you have.

Question-and-Answer Session


Thank you. (Operator Instructions) And your first question comes from the line of Josep Bori from Exane BNP Paribas. Please ask your question.

Josep Bori – Exane BNP Paribas

Hi, good afternoon guys. Thank you very much for taking my questions. Let me ask a couple of questions on the acquisitions you have made. On the first one, the Archivideo acquisition, could you maybe elaborate a little bit and how that technology is going to be incorporated into Gemcom if at all or is it just going to be part of the GEOVIA Group and runs separately?

And also on that, I believe you have mentioned this morning on your prepared remarks that they maintain a sub-neutral position model of the earth and I was wondering how this is kept up to-date and if that is part of the economics of this business model?

And the other on the FE-Design acquisition, could you maybe give us some color in terms of what’s the growth rate of those revenues and if we should expect the same rate going forward? I think you have guided for €4 million contribution for 2014, is that mostly subscriptions or includes licenses as well? Thank you.

Bernard Charlès

Thank you very much for your questions. On the Archivideo, first of all, what is unique about that technology is, without going too much in technical detail, it is what we call a [geoactive] technology. Let me just explain briefly. We can read open data source of any sources which are published and recreate on the flight on entire city. For example, in the Paris city, you are open source data, a big data published. You know where are the gunshots, a lot of informations, tweet informations, network information regarding electricity and many of those things. We can read on the flight and because we know architecture style of the city, we can literally reproduce the city result having (inaudible) on taking images. So that’s one piece and this is really very, very normal and very powerful. Of course, it is very useful when you are a network company and you want to manage what we call multi regional on water supply, electricity and many of those things.

Now related to your specific question about how can we get these earth precision. Now multiple sources, again the same approach, open data of agreement we providers of high quality images on information. There are multiple sources along the ground of this information and they have demonstrated that this is a process that works extremely well.

Now it does not require, which I understand as a kind of implicit element of your question, it does require manual work because of course we don’t want to have a back office of people with an army of people trying to capture those data, all this is automated. And the results are quite significant in the something like 220 or 200 plus showcases that they have in different cities. It has been really useful. I have been planning mediation with season in a very efficient way and also for planning of evaluation. We think that will be very, very useful not only in developed countries, but in also for developing countries, and we have project that we refer to back months ago. For example GEOVIA in Mexico, anyway more to say from the (inaudible) another example, where we are doing these kind of things, so that’s will actually reviewed. FE-Design, I’ll let Thibault make some comments and as you notice this morning at the presentation he also explained the technology inside FE-Design, so we can cover a bit full scope, Thibault.

Thibault de Tersant

Yes, Joe that we mentioned $4 million for this year. The company is doing slightly more revenues, but since that product is already in the similar portfolio of course this revenues are already part of our reported revenue and this split between new licenses and subscription is close to 50/50 split.

Josep Bori – Exane BNP Paribas

Okay. And in terms of the growth rate just to give us a ballpark idea…

Thibault de Tersant

So the grow rate historically has been 20% higher.

Josep Bori – Exane BNP Paribas


Thibault de Tersant

And so we would be very appointed not to continue on that plant or even accelerated.

Josep Bori – Exane BNP Paribas

Excellent, thank you very much.

Bernard Charlès



Your next question comes from the line of Jay Vleeschhouwer from Griffin Securities. Please ask your question.

Zack R. Ajzenman – Griffin Securities, Inc.

Thank you, good afternoon. This is Zack Ajzenman for Jay. We have a few questions. First to Dassault Customer Conference earlier this week in Orlando, it seem to us anecdotally by customers think of their work in terms of your point tools. Could you describe the process by which the purchase and use of industry solutions become more prevalent?

Bernard Charlès

Thank you for the question. Okay, sorry for this, I was trying to make sure I got the question well. In Orlando the event was not per se 3DEXPERIENCE forum, it was a CATIA community forum, it’s called COE, CATIA Operator Exchange. So in that context, most of the people that were there are the main interest in design on the work processes with CATIA.

We do ask an American 3DEXPERIENCE forum where we talk about industry processes and industry solution experiences. So it’s not a surprise that we were and it was on propose that we were really focusing on developing the CATIA user community, because the current strategy that we have is to go both way. Worldwide we have event for bronze events, where we developed the user community and we have 3DEXPERIENCE forum where we develop the industry approach. In China, the week before it was a 3DEXPERIENCE forum, we are covering six of the 12 industries, the one which are priorities for us in China. So we were covering all the solutions without having specific description of any product brand. So that’s why the explanation.

Now when it comes to how do we fit all the elements together is every simple all on the common platform, common architecture, architecture name is V6. The common platform is 3DEXPERIENCE platform, and as you know application on an iPhone you can picture that all our application for older brands are behaving on the 3DEXPERIENCE platform which is becoming a business platform, not the technical platform and business platform are behaving exactly like application on an iPhone, which provides incredible flexibility to combine them, supports us in business process on that solutions to industry. That’s in short in a very compact way the overall story about what we have in deploying around the world and which is very, very successful. Right now, in terms of customers understanding and planning for the future.

Zack R. Ajzenman – Griffin Securities, Inc.

Okay, at the same conference, it was mentioned that the active CATIA is now around 470,000 licenses. Could you say how many of those are commercial seats and what might be a realistic objective to the size of base several years from now given your view of the end markets?

Bernard Charlès

We don’t communicate the number of licenses, we communicate by revenues, so I don’t think I need to pass the question to Thibault.

Zack R. Ajzenman – Griffin Securities, Inc.


Bernard Charlès

Next question?

Zack R. Ajzenman – Griffin Securities, Inc.

The company has discarded overall strategy in terms of modeling product Nature and life. The platform is clear as if now Nature with the acquisition of Gemcom. But could you describe your positioning and strategy for life especially in the context of emerging trends in synthetic biology?

Bernard Charlès

There is a lot of development going on there, the current activities we do in life science related to medical equipment, but also to human organ modeling on stimulation. If you participate to SIMULIA conference which will be in Vienna in a few weeks from now, I think in May. There will be presentation on how we are working with several hundreds of universities medical universities in the world to do modeling and stimulation of human organs, bones, skin that’s one piece, this is in existence right now, including vascular stimulation, when you put pens for example in vascular organ.

In the next 18 months they will be a wide collection of more specific what we call bio PLM systems for system biology that are going to be announce on whole out around the world, which is the result of the last five years research and development, that we have been doing with five big companies, and we mentioned that few years ago to the Analyst meeting. But the all out is now going to be done in the next 12 months, so life science is becoming very significant sector of system biology or gains on (inaudible) stimulation on even surgery processes.

Zack R. Ajzenman – Griffin Securities, Inc.

Okay. And lastly when you consider the opportunity to migrate the ENOVIA LCA based, ENOVIA V6 and for new deployments generally, how do you strike a balance between sufficiently utilizing your services capacity versus having your partners such as Tata or Geometric do the work

Bernard Charlès

This is a very important aspect to mentioned, we are going to significantly expand the system integration alliances. We are today very successful activities. For example we (inaudible) in aerospace in Europe, (inaudible) both of them. With IBM in India excellent results in fact (inaudible) project in India, done with IBM Global Services and also IBM in China investing around our solutions. And of course we have Tata Technology many user companies like Infosys on closures. So it’s more by countries industry sectors based on the system integrator policy to invest. on, we are going to expand that because it’s now needed.

Relating to your comment about the evolution of V5 base installation to V-6, as you understand the entire platform of V-6 as a scope of being a business platform and this is becoming an application migration, it’s still business process migration not even application migration. And I think we are on a very good start, we selected our company in aerospace, in automotive. We have great example, we juggle along over, we are probably one of the most comprehensive installation, but also doing a lot of activities, we don’t know group on the world including Dassault activity. And so, it is clearly a business process confirmation more than a software migration and that’s what is the value of the industry solution.

Zack R. Ajzenman – Griffin Securities, Inc.

Thank you.

Bernard Charlès



(Operator Instructions)

Your next question comes from the line of Michael Briest from UBS. Please ask your question.

Michael J. Briest – UBS

Great, thanks good afternoon. Bernard could you talk a little bit about the pipelines of a SolidWorks and we move to a – see a turn off for that, I think we are expecting some product initiatives this year. And then Thibault, in terms of the contribution of Gemcom and Transcat, and it looks like 2% of licenses or software, so it’s about 8 million. That seems quite low to me. Can you sort of talk to the puts and takes of that, Transcat was a reseller so there wouldn’t really be any licenses within that. Thanks?

Bernard Charlès

Thank you, Michael. On the SolidWorks dynamic, I think as Thibault said, overall we think we have all the good pipeline for the year, that’s why we confirm our objectives for this three year. We think that given the pipeline could be better, but as Thibault and I said, as we see economic or hesitation, we are prudent and careful about not over committing. In normal time, I think the pipeline would support higher gross, but we are not in normal time. I think we have certain factors of hesitation, so we want to take them into account. Related to – under the situation for SolidWorks around the world it varies from countries to countries obviously. Based on the level of maturity, we deleted our channel, I will make two comments.

Our priority China is to continue to expand the number of resellers, for example, same in India. But between developed market our priority is to develop what we call multi-application selling. Electrical has been very successful, it could be a more – it has been very successful for SolidWorks customers. Customers work, I mean the analysis has been getting good traction, so we want to leverage composer for technical documentation we want to leverage that. So as you noticed the priorities are still depending on the maturity of the countries.

On the evolution of the kernel, that’s not anymore the way we are approaching. The evolution of the next generation of SolidWorks, what was presented at SolidWorks world, early this year in January was the fact that we are approaching the evolution of SolidWorks to become social, online with new type of additional applications.

The first we are introducing this year is what we call mechanical conceptual which is really something highly needed for mechanical engineers. And this will be done by providing an online social environment that works. We stick around SolidWorks portfolio, supplement that portfolio and use the social environment for designs.

So we don’t plan to replace unless we are added to the SolidWorks install base additional valuable application that users will value, recognize and then will use that’s the adoption process. So there is no plan for migration, the plan is for expansion of the portfolio. And that sum on the time, where the expansion are big enough, the previous generation becomes an add-on of the generation because we believe today the world of design is changing and that is the game we are offering here including online design. We want to be the first, I know the status now working on online tab, browser-based and we now believe then the space open.

We are building the solution to the online through the browser that’s what we are starting to do with 3DVIA product line and other product lines which are coming up.

Gencom and TransCat, Thibault?

Thibault de Tersant

Yes. So in a fact Michael you’re right. Gencom continues into our software revenue and first quarter was about 3 points and the reason why when you net with the TransCat, it’s only 2 points. It is because you have two elements of software actually in TransCat, one is obviously the via margin, kept by TransCat. And the secondary amount is that TransCat also had developed software of its own. So there is also a pure software activity part of TransCat. But both element are in fact attributed to our software revenue.

Also this morning, I clarified the fact that in first quarter of 2012, there were TransCat’s deferred revenue in our total deferred revenue that we don’t see anymore in first quarter of 2013 in order to help people reconcile the level of deferred revenue in this first quarter compared to last year. In an efficient manner this amount was a little bit more than €8 million in first quarter of 2012.

Michael J. Briest – UBS

Thank you. And then maybe could you talk about the acquisition pipeline, I mean obviously there is a couple of nice deals today, but on the smaller spectrum, are there any large deals that one can hope to close in the next six, nine months, you told maybe about two or three for the year.

Bernard Charlès

I wish we could tell you more. But it’s I mean I think there is an understanding that nothing is done before it is done, but it’s clear that we want to continue to the policy that will be no surprise, the same as the one we have been following for years. It has to be consistent with our new purpose, and our new purpose is, have a nice product. And it’s about 12 industries, industry solution expands of those 12 industries. So we will continue to spot great teams, great technology to make this possible and we’ll do it creating hopefully more upside and downside.

One question, I want to come back to briefly is you mentioned the – I did talk on the question of integration of (inaudible). We put it as spot here, yeah, but in fact it is going to be part of the expanse, because when we do grid for cities you do not have only the first modeling, you need to be able to manage system networks and represent many, many things. So we continue to accelerate our integration capabilities for our new solution experience. We are going to be prudent and focused on continuing to deliver on promise.

Michael J. Briest – UBS

Thanks very much.

Bernard Charlès

Thank you. Welcome.


There are no further questions at this time, please continue.

Bernard Charlès

With that thank you very much and thank you for all of you participating to our live presentation in London. It’s a sunny weather in London today, I wish you a great day and of course we are all year to answer your questions on the go. Thanks a lot and thank you for following our company. This is going to be another funny year. Bye, bye.


Thank you. That does conclude our conference for today. Thank you for participating. You may all now disconnect.

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