Grab Holdings Ltd Q4 FY2021 Earnings Call

Good day ladies and gentlemen. Thank you for standing by and welcome to Grab Holdings Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. I would now like to turn the conference over to your speaker host, Vivian Tong, Head of US Investor Relations.

Good day, everyone. And welcome to Grab’s fourth quarter 2021 earnings presentation. This is Vivian Tong, head of US Investor Relations at Grab and joining me today are Anthony Tan, Chief Executive Officer; Ming Maa, President; and Peter Oey, Chief Financial Officer. During the call today Anthony will discuss our key business updates and Peter will share detailed insights with you on our fourth quarter and full year 2021 financial results. Following prepared remarks, we'll open up the call to questions, where Anthony, Peter and Ming will respond to Q&A. As a reminder before we begin, today's discussion contains forward-looking statements about the company's future business and financial performance. These comments are based on our predictions and expectations of today. Actual events and results could differ materially due to a number of risks and uncertainties, including those mentioned in our form S-1 registration statement and other filings with the SEC. The discussion today also contains operating metrics and non-IFRS financial measures. The comparable IFRS financial measures are included in this quarter’s earnings material. For more information and additional disclosures on recent business performance, please refer to our earnings press release and supplemental presentation for a detailed fourth quarter and fiscal year 2021 financial review, which can be found on our IR website. Should you have any questions after this presentation, please reach out to investor.relations@grab.com. And with that I will turn the call over to Anthony to deliver opening remarks.

Thank you so much for joining our first ever earnings call as a public company. We had our best year yet in 2021 and I'm so proud of Grabbers and what we've been able to accomplish. Thank you to all our Grabbers around the globe for their contributions in driving Southeast Asia forward. I also want to express our deep appreciation to our driver and merchant partners who continue delivering day-in and day-out. Before diving into the details of our performance for this year, I'd like to spend a moment on the Grab story. Hooi Ling and I co-founded Grab in 2012 with a mission to drive Southeast Asia forward by creating economic empowerment for everyone. Since then, we've evolved into a single everyday, everything super app that enables millions of people each day to order food, groceries, hail a ride, make purchases, and access financial services like lending, insurance, and more, all in one app, and we are just getting started. During 2022, we will continue to be intensely focused on our three key priorities: Firstly, we are focused on winning the hearts and minds of more users across the region by introducing the benefits of the Superapp to more users by being hyper-local in how we serve the region and by delivering even better user experiences and service levels. This will further solidify our category leadership in Southeast Asia. Secondly, we will continue to invest in the growth of our key business segments. We're addressing massive market opportunities and see tremendous headroom for growth in our user base and aiming to drive greater wallet share from our existing users. Third, we will continue to reduce our cost to serve. We want to be the most capital-efficient provider in the market, and this is where our Superapp product strategy provides us with an advantage. With this backdrop, let's dive into the results for the year. We had another record year for Grab with tremendous year-over-year growth that saw us achieve a total GMV of USD 16.1 billion, exceeding our GMV guidance for the year. We also delivered against our adjusted EBITDA guidance as we continue to progress on our path to profitability. This was despite a difficult COVID environment where lockdowns were markedly harsher in Southeast Asia in 2021. GMV grew 26% year-over-year in the fourth quarter to $4.5 billion. As of the fourth quarter, our monthly transacting users are at the highest point since COVID lockdowns began. Our data also shows that in 2021, our users are spending 31% more on our platform compared to the year before. These results bear testament to the resilience and growing relevance of the Superapp and effectiveness of our Superapp product strategy. It demonstrates our ability to grow even in an uncertain environment. On mobility, while we're not completely out of the COVID woods yet, we're progressing strongly towards full recovery. We saw fourth quarter mobility GMV up by 45% quarter-on-quarter. We're also seeing mobility GMV in the first two months of the year, growing modestly year-on-year as well. Consumers are eager to be out and about again, and we've observed greater nuance in how governments are responding to Omicron compared to previous infection waves. Countries like Malaysia and Singapore have gradually loosened restrictions in spite of rising cases, while countries like Indonesia and the Philippines have introduced or reintroduced tighter restrictions in the first two months of the year. We're more optimistic about our recovery than we were in 2021 and we are investing to position our supply base strongly to capture the demand and rebound ahead. Turning to deliveries, it is clear to us that deliveries are becoming more integral to everyday life. Even through the loosening of restrictions, our deliveries business has continued to perform strongly. Not only are we seeing our user base grow, but users are ordering more frequently and spending more per order. Average order values have gone up by 41% in 2021 compared to 2019 before the onset of COVID. Overall, GMV for our deliveries business expanded by 56% year-over-year in 2021. For Financial Services, we continue to see strong momentum. The fourth quarter was another record quarter for us, with a total payments volume for 2021 at $12.1 billion, a 37% increase year-over-year. We're seeing good growth in products like buy now, pay later with fourth quarter TPVs being five times higher than the year before. I'm also excited about our Digibank opportunities. The Grab Singtel Digibank joint venture is getting ready to launch in Singapore this year. We're awaiting results in our Digibank license application in Malaysia, which the regulator has stated they expect to announce within March. We also recently acquired a 16.26% stake in Bank Fama in Indonesia, which we intend to use as a launch pad for our Indonesia digital banking ambitions. A quick point on enterprise and new initiatives: we continue to expand our existing advertising and mapping offerings. While still a small and very young segment, the growth prospects are very exciting and we will continue to sharpen our value proposition with the expanding partner and client base that we are progressively building. In our advertising business, for example, we have tripled the number of merchants on our ads platform between the fourth quarter of 2020 and the fourth quarter of 2021. I want to point out that the fourth quarter was a quarter of reinvestments for Grab and we expect some of this to continue into the first and second quarter. There are three drivers for this. First, we're preemptively investing to recalibrate driver supply to capture a strong recovery in mobility demand. Similar to what was observed in other parts of the world, our driver supply base moderated down amid lower mobility demand in the third quarter. We're investing to pull drivers back even as we continue to find ways to increase their productivity on our platform. Not only are we seeing our driver pool grow, but the utilization rates went up by 19% year-over-year in the fourth quarter and the average earnings per hour grew by 16%. Secondly, we're strategically investing to maintain category leadership in Southeast Asia. According to Euromonitor, we remain the #1 category leader across our core verticals in 2021. We're 3.9 times larger than the next largest competitor in ride-hailing, 2.1 times larger in online food delivery, and 1.3 times larger in payments. The growth opportunity in Southeast Asia is tremendous across our verticals, and we're not the only ones who recognize this. Players in some markets have at times increased their promotion spend significantly. We will continue to invest as appropriate to maintain our lead. While we have a fortress balance sheet to support this, we aim to do it in an efficient, judicious, and disciplined manner. As the category leader, we continue to lead in capital efficiency across the categories in which we operate. Let me share two quick examples. In Singapore, we retained a comfortable lead in category share for mobility while spending an estimated four times less on promotions per ride in the fourth quarter compared to one of our competitors. This represents a 4:1 advantage in capital efficiency that Grab has. In food deliveries, despite competition, we maintained category leadership in the region while driving greater efficiencies from our incentive spend across our core markets. For example, on a per order basis, across competitive markets such as Indonesia, Malaysia, Thailand, and Vietnam, we estimate that our GMV to cost ratios are 25% to almost 100% more efficient than competitor averages. This demonstrates that our platform and Superapp product strategy afford us greater efficiencies in our incentive spend. Not only because of advantages from our Superapp flywheel but also because of consumer loyalty and preference towards Grab. Year-on-year, we are seeing the number of cross-vertical users grow. Users who use two or more Grab services have now reached 56% of our user base, up from 49% a year ago. Their retention rates are higher, and they're spending more on our platform. This, in turn, drives higher customer lifetime value and greater efficiency in incentive spend. Third, we continue to invest into tech infrastructure and talent to support the pursuit of our long-term growth opportunities. We're scaling up our cloud infrastructure, investing more in mapping out Southeast Asia in AI, and in our ads platform. With all these investments, I want to emphasize that we don't expect these levels of investment to persist in the long run. With Southeast Asia still in the early stages of online adoption across our key categories, we see significant headroom for our total addressable market to increase. We're confident that the investments we are making are important, foundational, and ones that we expect will pave the way for sustainable future growth. I also want to underscore that we continue to be laser-focused on our path to profitability. Mobility continues to deliver best-in-class segment adjusted EBITDA margins. Across all our segments, we've seen our adjusted EBITDA margins improve year-over-year. Peter will share more on our margins and how we are thinking about the medium to long term. Looking ahead, I expect 2022 to be another watershed year for Grab for a few reasons. First, we're aiming to launch our very first Digibank in Singapore this year. Second, we will continue to pursue large opportunities in deliveries across both offline and online demand for prepared meals and groceries. So, when our consumers are hungry for anything, whether it's a restaurant meal, a home-cooked dinner, or just something to snack on, we want Grab to instinctively come top of mind for them. Third, we'll continue to focus on the recovery of mobility. This is where we have a proven track record of nine quarters of segment adjusted EBITDA profitability to date. As we march towards profitability, mobility will continue serving as a solid foundation for other verticals and focus areas. I have deep conviction in our superapp product strategy as our right to win. I will continue to aim for the best product experience for our consumers in the market. It is key to how we drive loyalty to our platform while reducing our cost to serve. We continue to stay true to our mission of driving economic empowerment across all of Southeast Asia and remain steadfast in executing our strategy. I'll now turn the call over to Peter for a review of the financials.

Thanks, Anthony. Before I turn to the financial update, I wanted to update you about Grab’s inclusion in the MSCI World Index earlier this week on March 1. This is another significant milestone that will enhance our trading liquidity and improve our visibility to global investors. Now turning to the financials, we ended 2021 with strong fourth quarter and full year results, exceeding our expectations on the top line and meeting guidance on our bottom line. The fourth quarter was our strongest quarter to date, as GMV grew 26% year-over-year to $4.5 billion, driven by deliveries growth of 52% year-over-year. GMV for the year finished at $16.1 billion, a year-over-year increase of 29%, and deliveries GMV of $8.5 billion, growth of 56% for the same period. Mobility GMV in the fourth quarter grew 45% over the third quarter. While we’re still a way from mobility recovering to pre-COVID levels, we’re optimistic about mobility’s future growth, based on this quarter’s strong recovery progress. Mobility GMV for the year finished at $2.8 billion. Overall, across all our segments, we're seeing improvements in commission rates, which is defined as Grab’s commissions before incentives as a percentage of GMV. Deliveries commissions are up from 17.5% to 18.2%, mobility commissions are up from 21.7% to 23.8%, and financial services commissions are up from 1.8% to 2.4%. Revenue on an IFRS basis for 2021 grew by 44% year-over-year to $675 million from $469 million. This marks our highest revenue achieved in a fiscal year. However, the fourth quarter revenue did decline to $122 million from $219 million year-over-year. This is likely due to the strategic investments made in higher driver incentives to meet the strong demands from lockdown re-openings in the third quarter across all markets, and also higher consumer incentives in deliveries as we invested in our category leadership and acquired new users through our platform. We made positive strides in improving our EBITDA margins in 2021. Segment adjusted EBITDA margins for 2021 as a percentage of GMV improved from negative 2% to negative 1%. Adjusted EBITDA margins for the group as a percentage of GMV also improved from negative 6% to negative 5% as we improved commission rates and scaled operating leverage at the segment level. For the fourth quarter segment adjusted EBITDA declined to a loss of $113 million from a loss of $49 million in the fourth quarter of 2020, driven by the investments in incentives focused on segment adjusted EBITDA for deliveries. Our margins improved from negative 3.9% to negative 1.5% from 2020 to 2021, and we see core food deliveries being closer to breakeven, achieving a segment adjusted EBITDA margin of negative 1% for 2021, compared to negative 4.5% in 2020. In the mobility segment, the adjusted EBITDA margin for 2021 achieved 12.4% of GMV, compared to 9.5% in 2020. Turning to regional costs, this remained stable at approximately 4.4% as a percentage of GMV in 2021 relative to 2020. In 2021, we made key investments in scaling further our cloud infrastructure and in critical talent to support the growth of existing business lines and new initiatives off the platform. Our IFRS loss for the fourth quarter was $1.1 billion, which includes $311 million in non-cash interest expense related to Grab’s convertible redeemable preference shares that ceased upon Grab’s public listing, as well as $328 million related to one-time public listing expenses. For the full year 2021, the IFRS loss was $3.6 billion, which includes $1.6 billion of non-cash interest expense related to convertible redeemable preference shares and $353 million related to one-time public listing expenses. We continue to maintain a fortress balance sheet with $9 billion of cash liquidity as at the end of the fourth quarter, including our $2 billion term loan B facility. Our net cash liquidity was $6.8 billion as of the end of the fourth quarter. As we look into 2022 and the first quarter, we currently expect some slight disruptions to our mobility business with some of the minor lockdowns we've seen in certain cities as Southeast Asia reaches higher levels of Omicron cases in February and March. We are continuing to strengthen our driver supply to anticipate strong mobility demand recovery. For deliveries, we expect the momentum to continue as we double down on strategic initiatives, including grocery deliveries. Finally, for financial services, we are focusing on ensuring the successful launch of Digibank Singapore sometime in 2022. With that context, for the first quarter, we expect to see deliveries GMV of $2.4 billion to $2.5 billion, mobility GMV of $760 million to $800 million, and financial services TPV of $3.1 billion to $3.2 billion. From the second quarter to the fourth quarter of 2022, we expect group GMV growth for each quarter to accelerate to 30% to 35% year-on-year, subject to COVID recovery. Looking beyond 2022, we see a path to profitability for deliveries as we expect the segment to reach segment adjusted EBITDA breakeven by the end of 2023 with food delivery breakeven by the first half of 2023. This is complemented with our best-in-class mobility margins of over 10%. We are targeting long-term segment adjusted EBITDA margins as a percentage of GMV for mobility of 12% and for deliveries of 3%. In conclusion, we are pleased with our strong performance this past quarter and for 2021. We will continue to compete in a more capital efficient manner, while driving the flywheel of the superapp ecosystem that continues to spin faster. With this, we remain optimistic about the recovery and growth opportunities ahead of us. Thank you very much for your time, and we will now open up the call to questions.

Ladies and gentlemen, now, first question coming from the line of Alicia Yap with Citigroup. Your line is open.

Hi, thank you. Good evening management and thanks for taking my questions. And also congrats on the first earnings call as a public company. My question is related to the delivery business. First, what are some of the proactive measures that you will implement for more market share in the coming quarters? Would you continue to explore opportunities to acquire or invest in some offline supermarket chains like Jaya in Malaysia? The follow-up question is on competitive landscape. How would you balance your targets for the end of 2023 against market share in light of rising competitive intensity? Would you foresee needing to spend more if competition becomes irrational? Thank you.

Hey, Alicia. This is Ming, thanks so much for the question. Let me talk a little bit about how we think about growing penetration within the delivery market, and then I'll hand it over to Anthony and Peter to talk about some of the growth versus profitability aspects of this. There are really two areas that we're really pushing on to deepen our category position. The first is continuing to lower our cost to serve. The more efficient we become with every single order, the more we unlock the markets for a broader set of consumers. For every dollar that we are investing into the market, we're generating about 97% more GMV than our competition in deliveries. The second area I would highlight is expanding from food to Mart and fresh groceries. The penetration rates that Anthony talked about earlier, 1% for groceries, is really just an indication of how unlocked the market is and what the potential could be if we develop the right products at the right price points.

Thanks, Alicia. Let me give you an update on competition. Some of our peers have increased their spending to try and drive additional growth. We will continue to defend and build on our #1 category position. Part of that includes some high investments but we think of this in a very targeted, judicious manner. If you refer to our earnings presentation, you'll see that the capital efficiency of our spend is much better than our peers. In mobility in Singapore, we're estimating a 4 to 1 capital advantage and therefore, believe we are very well positioned to protect our lead with very targeted promotional campaigns while still financially outperforming the overall category. It's a highly competitive category, but despite that, we are still able to drive greater efficiencies from our incentive spend across our core markets. For example, for every dollar we spend on deliveries in Thailand, we can get almost 2x the GMV relative to our peers. Our category share in ride-hailing is 1%, and 51% for food delivery. This means that what it represents is customers' #1 choice. We have a strong position to respond to market dynamics with the balance sheet Peter talked about, and we are confident in our ability to defend our territory.

Hey, Alicia, if I can just add on a little bit here. On the profitability and the unit economics of our deliveries business, our delivery segment's adjusted EBITDA improved from negative 3.9% in 2020 to negative 1.5% in 2021. And our food delivery business's EBITDA margin improved from negative 4.5% to negative 1%. So we've got the levers to improve the unit economics of our business. Our commission rates are over 200 basis points up year-over-year on our deliveries business. Our average order value is up 41% from 2019 to 2021, and GMV per MTU has also increased by over 30% year-over-year, which will help us improve our unit economics.

Okay, very helpful. Thank you all.

Our next question is coming from Mark Mahaney from Evercore ISI. Your line is open.

Okay, thanks. Two questions, please. You talked about this acceleration in growth during the year to 30% to 35%. Could you talk about what factors would cause those growth rates to come in better or worse than expected? And then on the delivery side, can you talk about the success you've had in expanding beyond food to grocery and convenience as a way to track your expansion beyond core food deliveries?

Hey, Mark. Thanks. I'll take the first one here, and I'll get Anthony or Ming to chime in regarding our deliveries. So yes, we are expressing that GMV acceleration to be between 30% to 35% for Q2 to Q4. Regarding what's driving this growth, we’ve seen substantial traction in our Grab supermarket business, which has been growing tremendously; our GrabMart business alone grew 300% year-on-year. For mobility, with the economy opening up in Southeast Asia and people starting to travel again, we are cautiously optimistic.

Hey, Mark, let me just follow up on your second question regarding expansion metrics outside of food. Our expansion verticals are still quite young, but our Grocery and Mart segments are showing significant potential. While we're not breaking specific metrics out, it's clear our growth in MTU spend includes increased baskets from food delivery but also cross-sells into larger Mart or Grocery baskets. A high percentage of our new customer acquisitions come from our food vertical, which helps funnel into our expansion verticals.

Next question coming from the line of Navin Killa with UBS. Your line is open.

All right. Thank you for the opportunity. If I can squeeze in two questions here. First of all, on the financial services side, the guidance you have provided for the first quarter implies a bit of slowdown. How much of this could be the result of the Gojek Tokopedia merger? And generally, could you discuss the impact of that in terms of magnitude and time frame? Secondly, you talked about Digibank in Singapore and Indonesia. Is there a strategy around Digibank in markets beyond Malaysia, such as Thailand, the Philippines, and Vietnam? Thank you.

Great. Sure, Navin. On the TPV question, we achieved record TPV for our financial services business at $12 billion in 2021. Our on-platform growth was over 50% year-over-year. The Tokopedia merger has led to a decline in TPV from Tokopedia, which we had expected. However, our open ecosystem strategy, which includes multiple partners, positions us well for growth in this area. Now regarding Digibank, we plan to launch in Singapore this year, and we’ve applied for licenses in Malaysia and have invested in Bank Fama in Indonesia. Digital banking is seen as a core segment in our cross-vertical strategy, and we want to leverage our partnerships in each market to develop a vibrant ecosystem.

Hey, Navin, let me touch on our Digital Bank strategy. We're viewing it as a strategic core in our cross-vertical approach. In markets where we have strong partnerships, we see opportunities to create a vibrant digital banking ecosystem. We don't have any other countries to announce today, but we will look at markets where we have strong stakeholder relationships.

Thank you.

And our next question comes from Mark Goodridge with Morgan Stanley. Your line is open.

Hi guys. Thanks for the time. I have one question specifically looking at your steady-state margins. You're highlighting steady-state margins in your delivery business of about 3%. If we allocate corporate overheads, it’s probably closer to 2%. My question is, why do you think Grab is losing market share? Is there any structural reason that prevents you from achieving those mid-single digit levels?

Hey Mark, yes. Our delivery business is still in its early stages, and we’re continually seeing improvements to our margins. It's critical to recognize that our deliveries business has multiple service offerings such as food, mart, supermarket, and express courier services. We're making improvements year-over-year, and we'll continue to optimize our business across all segments as we grow.

Thanks, Peter.

Our next question is coming from the line of Pang Vittayaamnuaykoon with Goldman Sachs. Your line is open.

Thank you for the opportunity. I have two questions. Firstly, can you talk about how the reopening has impacted your business so far? With Omicron still overhanging, how do you see the operating momentum benefiting from people returning to work to create growth? However, do you anticipate any growth rate reversals for segments that benefitted from COVID, such as food delivery? My first question. My second question concerns mobility, specifically the percentage of GMV slipping to only 10%. How should we think about this trend moving forward, especially as we head towards a reopening era? Will you need to increase spending to attract users and drivers back to the platform? How confident are you that you can reach the long term margin, aiming for 12%?

Hi, Pang. Thanks so much. Let me talk about COVID recovery. While we can't provide a specific timeline, we’ve seen eagerness among people to go out and about again. Every time restrictions loosen, we see a strong bounce back in mobility. Coming out of hard lockdown in Q3, our Q4 mobility GMV was up 45%. Deliveries have also grown from strength to strength year-on-year. In fact, there's been a structural shift in consumer behavior favoring our offerings. We remain cautiously optimistic about mobility as people return to work. We'll continue to support our driver partners to meet demand.

Your question about mobility EBITDA, I think you asked about expectations for 2022 and spending this year. We're seeing mobility coming back, and we saw that in the fourth quarter with a 45% quarter-on-quarter growth. We are working to calibrate our driver supply, making investments to ensure that we meet the demand as it rebounds. Our margins are improving as we invest in maintaining a healthy marketplace for both riders and drivers. Our unit economics are improving quarter-over-quarter, and we are confident in driving those margins back up to our long-term targets.

Additionally, our Mart and supermarket segments have seen considerable growth, indicating that our superapp strategy is effective. We'll focus on delivering the best experience for users to retain and capture new customers as behaviors shift post-COVID.

Thank you very much.

Our next question is coming from Piyush Chandra with HSBC. Your line is open.

Yes. Hi, thanks for the opportunity. Can you tell us what is driving a softer outlook for GMV in the first quarter in both mobility and delivery? In mobility, your guidance suggests a decline of -2% or a maximum growth of 4%. And in delivery, it's a decline of almost 2% to about a growth of 2.6%. Any clarity on what's driving that guidance would be useful? Secondly, when do you think mobility GMV will return to pre-COVID levels because in Q1 of March 2022, it used to be around $1.3 billion?

Hi, Piyush. Thank you for your question. The first quarter typically experiences some seasonal effects, and historically, Q1 is our weakest quarter following the holiday season. We also anticipate minor disruptions with rising COVID cases that have persisted in several cities, particularly among Omicron variations. However, we're still confident in our overall business performance. Mobility GMV is already showing positive quarter-on-quarter improvements for January and February. We're expecting by the end of the year to approach pre-COVID levels for mobility if the current trends continue.

And can I clarify, does your delivery guidance include the Jaya Grocer acquisition?

The Jaya Grocer acquisition, which we closed at the end of January, has two months' worth of GMV and revenue baked into our guidance. We're excited about the integration and what they add to our platform as they have 44 stores, and we are looking to grow further.

Thank you.

Our last question comes from Ranjan Sharma from JP Morgan. Your line is open.

Hi, good evening, and thank you for the presentation. Two questions from my side. Firstly, on the delivery side, do you see any consolidation opportunities in Southeast Asia? Would you evaluate these opportunities, or do you believe you have the largest platform, so you don’t need to acquire anyone else? Secondly, regarding the investments needed to drive further growth and deliveries, do you see opportunities in investing in dark stores, acquiring more supermarket chains, or would you prefer exploring strategic partnerships?

Yes, Ranjan. We do not expect to rely on M&A for achieving our profitability forecast. We have a solid organic growth strategy and while we do keep an eye on any available opportunities that may lower costs and enhance service. As for investments, our primary focus is on enhancing our tech platform and improving product experience. We will also need to balance our investment across first-party versus third-party services in our grocery operations.

Thank you.

Our last question is coming from Thomas Chong with Jefferies. Your line is open.

Hi, good evening. Thanks, management, for taking my questions. I’d like to discuss the enterprise and new initiatives, particularly the advertising business, which is a high-margin area that we are experiencing good growth in. Can you provide insight into your thoughts on this area and its long-term potential?

Thanks so much, Thomas. The key competitive advantage of our ads platform is the ability to streamline the process of tracking ad performance closely with GrabPay, resulting in high conversion rates for our merchants. This ensures that, beyond gaining attention, they can efficiently fulfill customers' needs through our vast network of drivers. We're thrilled to observe that the number of merchants on our ads platform has tripled from Q4 2020 to Q4 2021. We'll continue to invest in this area as it matures.

Thank you.

I’m showing no further questions at this time. I would now like to turn the call back over to Peter Oey for any closing remarks.

Thank you, everyone for taking the time to join our call today. We appreciate all the questions. If you have any further inquiries, feel free to reach out to our Investor Relations team or visit our Investor Relations website. Once again, thank you.

Thanks so much.

Ladies and gentlemen, that concludes our conference for today. Thank you for your participation. You may now disconnect.