Post on 26-May-2018
REGION EMEA PAUL SCHULER REGIONAL MANAGER EMEA SIKA CAPITAL MARKETS DAY 2016
NET SALES EMEA GOOD GROWTH MOMENTUM, FX EFFECT WEAKENS CHF NUMBERS
2,339 2,275
2,470
2,734 2,600
1,500
2,000
2,500
3,000
11 12 13 14 15 16FC
In CHF mn Growth in percent in LC
-1.1% +8.5% +13.3% +5.6% +6.6% (HY 2016)
2
EMEAACCELERATED BUILD‐UP OF PRESENCE
EMEA KEY INITIATIVES & ACTIONS
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Successful integration of acquisitions Further roll-out of acquired AkzoNobel Building Adhesives and Everbuild product
range for interior finishing New national subsidiaries in Kuwait, Djibouti and Cameroon Strengthening of regional Target Market support to drive strategic initiatives Supply chain efficiency improvements
KEY INVESTMENTS
New plants since 2012 2nd plant Russia (Rzhev, 2012) 3rd plant Russia (St. Petersburg, March 2013) 1st plant Iraq (Erbil, June 2013) 2nd plant South Africa (Johannesburg, June
2013) 1st plant Ukraine (Kiev, June 2013) 2nd plant Romania (Cluj, September 2013) 1st plant Angola (Luanda, November 2013) 1st plant Serbia (Simanovci, September 2014) 2nd plant United Arabic Emirates (Dubai, March
2015) 1st plant Réunion Island (March 2015) 4th plant Russia (Volgograd, August 2015) 1st plant Nigeria (Lagos, September 2015) 1st plant Ivory Coast (Abidjan, September 2015) 2nd plant in Greece (Athens, January 2016)
KEY INVESTMENTS ACCELERATED BUILD-UP OF MANUFACTURING FOOTPRINT
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New national subsidiaries since 2012: 2012 Iraq Qatar
2013 Belarus Estonia Oman
2014 Albania Bosnia-Herzegovina Mozambique Ivory Coast Nigeria
KEY INVESTMENTS EXPANSION WITH OWN NATIONAL SUBSIDIARIES
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2015 Ethiopia Tanzania
2016 Kuwait Djibouti Cameroon
ACQUISITIONS IN EMEA SINCE 2012 NEW BUSINESSES SERVE AS GROWTH PLATFORMS IN OUR MARKETS
Company Country Target Market Year
Ruetgers Germany Flooring 2012
Akzo Nobel Building Adhesives Europe Sealing&Bonding, Flooring, Mortars
2013
Everbuild Building Products United Kingdom Sealing&Bonding, Mortars 2013
Klebag Switzerland Sealing&Bonding, Flooring 2014
Duro-Moza Mozambique Mortars 2015
Axson Technologies Global Industry 2015
Addiment Italia Europe Concrete 2015
Total annual sales: CHF 520 million 8
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AKZONOBEL BUILDING ADHESIVES, EUROPE WIDE PRODUCT RANGE IN MORTARS Acquisition of AkzoNobel Building Adhesives 2013 CHF 228 million sales, 550 employees Strong focus on the top quality segment
through its leading brands Schönox, Cégécol and Casco
Significantly extended Sika’s product range for interior finishing – mainly with tile adhesives, floor adhesives and floor leveling products
Product range and sales particularly targeting the professional craftsman
Access to new distribution channels Two large factories in Germany and
France
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EVERBUILD BUILDING PRODUCTS, UK LEADING POSITION IN THE BUILDERS MERCHANTS CHANNEL Acquisition of Everbuild Building Products 2013 CHF 90 million sales, 270 employees UK’s largest independent manufacturer
of sealants, adhesives and construction chemicals
Leading position in the builders merchants channel with strong marketing activities
Improved access to professional craftsmen
Manufacturing facility for full range of construction chemicals with laboratories
With the acquisition Sika became market leader in the UK
KEY PROJECTS
KEY PROJECTS FOLLOBANEN TUNNEL, OSLO, NORWAY
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Project Description Two-tube railway tunnel, 50 km total Construction period: 2014-2021 Sika Products Concrete admixtures: Sika® ViscoCrete® PC-35 Sika Rapid C-100 Waterproofing: Sikaplan® WT 2200-22HL2
KEY PROJECTS BLADE BONDING AT GAMESA, SPAIN
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Project Description Numerous projects with Gamesa (Wind Energy) Sika Products SikaForce® 2K SikaDur® WTG Application: Blade bonding (PU & Epoxy adhesives)
Project Description The project aims to achieve Platinum Leadership in Energy and Environmental Design (LEED) certification. The project’s budget is €566 million. Sika Products Concrete admixtures Waterproofing Roofing Flooring Sealing & Bonding Mortars
KEY PROJECT STAVROS NIARCHOS FOUNDATION CULTURAL CENTER, ATHENS, GREECE
Project Description Shopping Center in Oxford Sika Products Waterproofing: 35,000 m2 of SikaProof® plus accessories
KEY PROJECT WESTGATE SHOPPING CENTRE, OXFORD, UK
Project Description Dumfries & Galloway Hospital - Scotland (Dual System Project) Sika Products Concrete admixtures for watertight concrete, 28,000 m2 of SikaProof ®
KEY PROJECT DUMFRIES & GALLOWAY HOSPITAL, SCOTLAND, UK
KEY PROJECTS GRAND PARIS, FRANCE
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Project Description 200 km underground subway 75 stations Construction period: 2015-2030 Sika Products Concrete, Waterproofing, Flooring and Mortars Main material: Sika® ViscoCrete®
THANK YOU FOR YOUR ATTENTION
AREA AFRICA JEAN DE MARTRES AREA MANAGER AFRICA SIKA CAPITAL MARKETS DAY 2016
MARKET POTENTIAL OF AFRICA Major demographic and
social changes From 0.2 billion people in 1950
to 1.1 billion in 2010 Population will double to more than
2.2 billion by 2050 25% are young people (< 20 years) Growing consumer class
Rapid urbanization 40% of Africans in cities by 2030 More than 1.4 billion people in cities
by 2050 versus 0.5 billion now 65 cities > 10 million people by 2030
Economic growth GDP forecast with average of
6% per year
Huge agricultural potential
Natural resources Oil & gas, metals, minerals…
Main reserves and production
Hot spots
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MARKET POTENTIAL OF AFRICA: POPULATION TO DOUBLE BY 2050 1.4 BILLION INHABITANTS IN MEGA CITIES
Algiers Tunis
Cairo Casablanca
Lagos Abidjan
Accra Nairobi
Lusaka
Johannesburg
Luanda
Addis Abebba
Kinshasa
Nigeria > 185mn
Egypt > 82 mn
Ethiopia > 85 mn
Kenya > 45 mn
Tanzania > 42 mn
S Africa > 55 mn
Algeria > 40 mn
Morocco > 35 mn
Angola > 20 mn
Moz > 25 mn
I Coast > 25 mn Cam
> 20 mn
Tun > 10 mn
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Sika local subsidiaries
footprint covers > 75%
of Africa cement
consumption
MARKET POTENTIAL OF AFRICA AND CONSTRUCTION MEGATRENDS
2015 cement consumption
225 million tons
Infrastructure projects: roads, ports, airports, water, power, telecoms…
Increasing projects in health, education, industry
Growing needs in real estate and construction
55 mn tons
< 1.5 mn tons
2 to 5 mn tons
7 to 10 mn tons
10 to 25 mn tons
Côte d’Ivoire
Nigeria
Angola
Botswana
Kenya
Egypt
Algeria
Zambia
Tanzania
Cameroun
Ethiopia
Senegal
Uganda Gabon
Namibia Zimbabwe Mauritius
Congo
55
10
8
4
2 13
8
3 20
14
22
5
Djibouti
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AFRICA ACCELERATED BUILD-UP OF PRESENCE
INVESTMENTS IN NEW SUBSIDIARIES ACCELERATED BUILD-UP OF PRESENCE
New subsidiaries with full set-up of local production, sales, R&D and technical assistance locally to be close to customers:
2012 : Angola, Kenya
2014 : Nigeria, Ivory Coast, Mozambique
2015 : Ethiopia, Tanzania
2016 : Cameroon, Djibouti
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INVESTMENTS IN NEW SUBSIDIARIES LOCAL MANUFACTURING AND SALES AS A COMPETITIVE ADVANTAGE
Production of concrete admixtures in Angola, Kenya, Nigeria, Ivory Coast, Tanzania, Mozambique and Ethiopia
Sika is the first company to manufacture locally
Improved delivery times
Concrete mix design adapted to customer needs
Customer support on site
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INVESTMENTS IN ACQUISITIONS FIRST TAKEOVER ON AFRICAN CONTINENT
2014 Mozambique, Duro-Moza
Acquisition of refurbishment mortars and tile adhesives manufacturer located in Maputo
Acceleration of market penetration by broadening Sika’s existing product range
Adding new technology segments such as flooring, admixtures and sealants
Investment in expansion of production capacity, quality and technical assistance for customers
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KEY PROJECTS DANGOTE FERTILIZER PLANT IN LAGOS, NIGERIA
Project Description Largest fertilizer plant in Africa with 12 buildings, USD 1.2 billion Sika Products
2 production units: 2,850 tons of urea and 2,200 tons of ammonium per day
Selling admixtures for ready-mixed concrete and precast on site such as :
Sikament® and Viscocrete® admixtures
Grouts, flooring and concrete repairs mortars
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KEY PROJECTS NEW RABAT THEATER, MOROCCO
Project Description
Zaha Hadid project
Theater with capacity for 1,800 visitors
Sika Products
Complex construction requirements especially for waterproofing
Parts of the building permanently below water level relying on SikaProof® solution
Basement waterproofing sales of 18,000 m² SikaProof ® membranes
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KEY PROJECTS IN AFRICA MALL OF EGYPT IN CAIRO, EGYPT
Project Description Super-regional mall of 160,000 m² in Cairo metropolis Sika Products
Concrete admixtures
Roofing systems
Sealing & bonding
Mortars
Flooring
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Offer full range of products and solutions as well as local production
Creation of local employment
Build-up of local R&D
Develop local distributors’ network
Offer technical support to clients
Assistance and demonstrators on site
Enhance quality level of construction
Transfer of know-how
Establish partnerships with universities
Increase in construction and industry skills by providing assistance and training
MAJOR GROWTH POTENTIAL FOR SIKA IN AFRICA COMPETITIVE ADVANTAGE AND STRATEGY FOR MARKET PENETRATION
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THANK YOU FOR YOUR ATTENTION
EASTERN EUROPE AREA ILEANA NICOLAE AREA MANAGER EUROPE EAST SIKA CAPITAL MARKETS DAY 2016
EASTERN EUROPE AREA A REGION WITH GREAT POTENTIAL
4.6% OF WORLD’S TOTAL POPULATION
13% OF THE GLOBE’S LAND MASS (21 MILLION KM2)
219 mn PEOPLE LIVE IN THE RUSSIAN-SPEAKING AREA
RUSSIAN-SPEAKING COUNTRIES
EUROPE EAST
109 RECOGNIZED LANGUAGES (91 INSTITUTIONALIZED)
17 CITIES WITH OVER 1 MILLION INHABITANTS
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CEMENT CONSUMPTION IN EASTERN EUROPE IN 2015 CONSTRUCTION SECTOR IN RUSSIA ACCOUNTS FOR 6.5% OF GDP
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Russia
Poland
Ukraine
Kazakhstan
Romania
Belarus
Czech Republic
Hungary
Bulgaria
Slovakia Serbia
Croatia
Bosnia Kosovo Moldova
Slovenia Macedonia
Montenegro
Growing demand for process materials • Urbanization • Increasing demand for sustainability
and higher standard of living • Increasing demand for
refurbishment and maintenance Fragmented global industry • Many local players • Global presence
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COUNTRIES WITH MAJOR GROWTH POTENTIAL INCREASED INFRASTRUCTURE SPENDING
Russia
Population: 143 million
Longest distance: 10,000 km
GDP CHF 1.190 billion (growth: 6.7% in 2016 and 7.3% in 2017)
Russia is the fifth biggest economy in the world
Turnaround and growth is expected to return to the Russian construction industry in 2016, after two years of substantial contraction (2014 & 2015)
Population: 38 million
Longest distance: 700 km
GDP CHF 463 billion (growth: +3.2% in 2016 and 3.5% in 2017)
Close to western Europe – massive flow of European investments
Industrial sector and infrastructure are slowing down but there is great potential in refurbishment and residential sector
Safe, stable business environment
Population: 19 million
Longest distance: 800 km
GDP CHF 171 billion (growth: 3.4% in 2016 and 5.9% in 2017)
Recovering economy
High potential in refurbishment and residential sector
Poland Romania
SIKA'S PRESENCE IN RUSSIA FOCUS ON REGIONS WITH HIGH POPULATION DENSITY
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EASTERN EUROPE AREA KEY INITIATIVES & ACTIONS
Continue the development of strong local teams
Opening of national subsidiaries
Create local employment
Investments in technical centers and training facilities – know-how transfer
Strengthen the manufacturing footprint to be closer to customers
Localize supply chain to improve cost structures
Use the countries’ natural resources and raw materials
Local production helps to hedge the changes in currencies (especially in countries with an instable political environment like Russia)
Strengthen Key Project Management and specification selling approach
Engage architects, engineers and key customers in technical seminars and training sessions
Invest in other distribution channels
Training & industry technical center (Krakow, Poland, 2013) Office, warehouse including new mortar plant (Belgrade, Serbia, 2014) Mortar plant (Cluj, Romania, 2014)
KEY INVESTMENTS ACCELERATED BUILD-UP OF FOOTPRINT
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New premises including offices (Brasov, Romania, 2015) Polymer (PCE) production in existing site (Lobnya,
Russia, 2015) Mortar production (Volgograd, 2015) Admixtures production (Volgograd, Russia March 2016) Admixtures production (Modrice, Czech Republic 2016)
KEY INVESTMENTS ACCELERATED BUILD-UP OF FOOTPRINT
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GROWTH STRATEGY IN RUSSIA
CHF 6.7 billion of market potential in Russia CHF 2 billion in the Moscow area alone Further important regions are the South and
Volga area with CHF 1.2 billion each Russian construction sector accounts for 6.5% of GDP Highest cement consumption in the area with
450 kg/capita Turnaround in Russian construction industry in 2016:
FIFA 2018 World Cup Construction of Moscow-Saint Petersburg
motorway Construction of Moscow Central Ring Roads Increase in railway construction activity in
Siberia & Far-East Active construction work on the Siberia
gas pipeline
GROWTH STRATEGY RUSSIA
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SIKA'S PRESENCE IN RUSSIA FOCUS ON REGIONS WITH HIGH POPULATION DENSITY
OFFICE IN KAZAN
ADMIXTURE PLANT IN RZHEV
HEAD OFFICE IN LOBNYA
OFFICE IN SAINT PETERSBURG
ADMIXTURE PLANT IN LOBNYA
OFFICE IN YEKATERINBURG 1ST BLENDING STATION IN MOSCOW 2007
2007
2003
2005
2009
ADMIXTURE PLANT IN SAINT PETERSBURG
IN-PAIL TINTING IN LOBNYA 2013
2013
OFFICE IN KRASNODAR 2008
DRY MORTARS IN RZHEV
POLYCARBOXYLATES IN LOBNYA MORTARS IN VOLGOGRAD
2015 2015
2010
2010
2010
2011
2013
SIKA SUBSIDIARY IN RUSSIA ESTABLISHED IN MOSCOW
10 YEARS IN RUSSIA
SIKA’S DEVELOPMENT IN RUSSIA
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ACCELERATED INVESTMENT PLAN IN RUSSIA MOSCOW, SAINT PETERSBURG, VOLGOGRAD
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Localize supply chain in Russia due to the huge import and transport costs
Russia offers good raw materials and important local natural resources Authorities encourage local production, creation of new jobs and use
of local products in the construction sector Moscow has 12 million inhabitants -> mega city concept
2013: extension of production in Lobnya (Moscow) and opening of
new plant in Rzhev (200 km from Moscow) to ensure Sika’s market access to the dry mortar segment
2015: New production site in Volgograd Extension of sales channels in the south Product supplies to the Southern Federal District and the Volga
Federal District Optimized cost structure (transportation and customs) More than 90% of the raw materials used in production are of
local origin
ACCELERATED INVESTMENT PLAN IN RUSSIA VOLGA, URAL AND FAR EAST
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2015: Start of polymer (PCE) production Only plant in Russian territory for polycarboxylates Reduction of logistics costs Optimization of price of finished goods Strengthening of Sika’s position in admixture market Product supplies of admixture raw materials to other plants in
Russia and neighboring countries: Ukraine, Belarus, Kazakhstan, etc.
2016: Start of admixtures production in Volgograd
Satisfy needs of the construction market in the southern regions with high-quality concrete admixtures
Proximity to customers Improved delivery time for goods
KEY PROJECTS LACHTA CENTER IN SAINT PETERSBURG (GUINNESS BOOK)
Project Description The center will include the first super tall skyscraper in the city, a scientific and educational complex, sports and leisure facilities, and an outdoor amphitheater. The 462 meter high tower of Lakhta Center is expected to be the tallest building in Russia and Europe. Concrete pouring of the bottom slab of the box-shaped foundation was registered by Guinness World Records as the largest continuous concrete pour. 250,000 m³ of concrete Sika® ViscoCrete®, Sika® Retarder, Antisol®, SikaAer®-200S 200,000 m2 of facades Sealants, adhesives and membranes 15
KEY PROJECTS STADIUM "ZENIT" IN SAINT PETERSBURG (FIFA 2018 PROJECT)
Project Description The 68,000 seats stadium will host FIFA 2018 World Cup. The project started in 2007 and it will end in 2018. 253,000 m³ of concrete Sika® ViscoCrete® 5-600 SP SikaPlast® 2190 LS 1,100 m² of dry mortars For structural strengthening 1,000 m² of roofing Sika-Trocal® metal sheet type S 65,000 m² flooring Epoxy resins flooring systems
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KEY PROJECTS "TUSHINO 2018"
Project Description Covering 224 hectares, Tushino is a residential area with sports & recreational facilities, municipal and industrial, public and business buildings (5 schools & 9 kindergartens, hotel, shops, hospitals, gas stations, car parking's, indoor football stadium, Ice Palace, Sport center, Hospital and Stadium (for FIFA WC 2018). The project will be completed in 2023. 193,500 m³ of concrete superplasticizers 2,000,000 m2 of waterproofing Sikaplan® WP 1100-20HL accessories, injections 42,000 m2 of roofing TPO membranes for ballasted and green roofs Liquid applied membranes 1,400,000 m2 of flooring Sikafloor® solutions for halls, parking, stadium, kindergartens and infrastructure 40 tons of dry mortars
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KEY PROJECTS NEW RAILWAY STATION IN ASTANA, KAZAKHSTAN
Project Description A new railway station with the trains arriving directly into the six-storey building, that has the capacity of 35,000 people a day. Opening in 2017. 57,400 m2 of waterproofing bituminous membranes, mortars and joint filling systems 5,000 m2 of dry mortars 57,400 m2 of flooring 12,000 m2 of facades SikaSil IG-25®
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Project Description The new generation of VW commercial vehicles will be manufactured in a modern car factory covering 220 ha. Production will be launched in the second half of 2016. 70,000 m3 of concrete Superplasticizers, air entrainers, anti-freeze, Sika® ViscoCrete® 800,000 m2 of roofing FPO membrane and vapor control layer + accessories 345,000 m2 of flooring Epoxy and PU flooring systems for conductive (antistatic) floors 450,000 m2 of protective coatings SikaCor® Steel Protect VHS Rapid 60 tons of dry mortars
KEY PROJECTS VW CRAFTER PLANT WRZEŚNIA, POLAND
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Project Description The new five-star hotel will have 165 rooms, 2 banquet halls for 500 guests, several conference halls, a presidential suite, a spa center with a swimming pool and fitness zone. On the 21st floor there will be a restaurant with a panoramic view of Ljubljana. 15,300 m³ of concrete Antisol®-E 4,500 m2 waterproofing self-adhesive membranes SikaProof® joint filling systems Sika Waterbars® 5,300 m2 flooring cementitious systems, epoxy resins for antistatic floors and PU systems for decorative floors
KEY PROJECTS HOTEL INTERCONTINENTAL LJUBLJANA, SLOVENIA
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KEY PROJECTS "PARK LAKE" BUCURESTI - SHOPPING MALL , ROMANIA
Project Description The biggest shopping mall ever built in Romania, with Sika’s watertight concrete technology. The mall was opend in September 2016. 100,000 m3 of concrete Superplasticizers, fibers and concrete surface treatments 7,000 m2 of waterproofing PVC membranes, bituminous membranes, mortars and joint filling systems 44,480 m2 of roofing FPO membrane for green and ballasted roofs, stone wool, liquid membranes and vapor control layer + accessories 45 tons of dry mortars Epoxy repair mortars, grouts, anchoring systems and adhesives for structural strengthening systems with CarboDur® 1,000 m2 of flooring Concrete treatment systems and hardeners 6,000 m2 of facades Membranes and bonding systems
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KEY PROJECTS SIGHISOARA RAILWAY TUNNEL, ROMANIA
Project Description First major tunnel after 30 years in Romania having the total length of 1,2 km. The tunnel will be finished in 2017. 90,000 m3 of concrete Sika® ViscoCrete® SC-900, Sika fibers, shotcrete, anti-freeze and release agents 40,000 m2 of waterproofing PVC membranes, bituminous membranes, mortars and joint filling systems 13 tons of dry mortars Repair mortars, injections, rigid bonding and grouting systems
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THANK YOU FOR YOUR ATTENTION