Good afternoon, ladies and gentlemen, and thank you for joining us. Welcome to the Tower Semiconductor Second Quarter 2025 Earnings Conference Call. This conference is being recorded today. I will now turn the call over to your speaker, Ms. Noit Levy, Senior Vice President of Investor Relations and Human Resources. Please proceed, madam.

Thank you, and welcome to Tower Second Quarter 2025 Financial Results Conference Call. Before we begin, please note that certain statements made today may be forward-looking and subject to risks and uncertainties that could cause actual results to differ materially. These risks are detailed in our SEC filings, Form 20-F and 6-K as well as filings with the Israel Securities Authority, all available on our website. Tower assumes no obligation to update forward-looking statements. Our second quarter 2025 results are prepared in accordance with U.S. GAAP. Some data presented may include non-GAAP financial measures as defined under SEC Regulation G. Reconciliations to GAAP figures and full explanations are provided in today's press release and financial tables. Please note that we have a supporting slide deck that is available on our website and integrated into this webcast. With that, I'd like to turn the call over to our CEO, Mr. Russell Ellwanger. Russell?

Thank you, Noit. Thank you all for joining us today for our second quarter 2025 earnings call. We delivered strong results in the second quarter with revenues of $372 million and result in net profit of $46.6 million. We guide our third quarter revenues to be $395 million, plus/minus 5% and additionally, target a $40 million-plus revenue increase for the fourth quarter over the third quarter. Q3 guidance and Q4 expectations validate our onset 2025 target of sequential quarter-over-quarter growth throughout the year with acceleration in the second half. We announced at the beginning of the year, a repurposing of multiple factories, predominantly towards higher capacity for RF infrastructure, namely Silicon Germanium and Silicon Photonics. This is well underway with Q3 and Q4 expected growth being the first fruits of the execution of this strategy. Demand not only remains very strong but is consistently growing as is our increase in both silicon germanium and SiPho capacity and associated customer qualifications. We continue to invest in capacity and also R&D advanced capability CapEx throughout 2025, with further capacity and capability growth planned for 2026 aligned to our customers' forecasted demand, confident in maintaining our #1 market share position in this growing and significant optical transceiver market. Let's review our second quarter 2025 revenue breakdown, along with some context that highlights key trends, momentum shaping our performance for the full year. Kindly refer to Slide #4 for a detailed breakdown of our quarterly revenue figures. Most notable is growth in our RF infrastructure business, attributed to data center and AI expansions served by our Silicon Photonics and Silicon Germanium technologies. In the second quarter, RF infrastructure represented 25% of corporate revenues, over $90 million in revenues, up from 14% in the same period of 2024, and expected to significantly increase over the next period. Specific to Silicon Germanium, we began volume production shipments from San Antonio Fab 9 for a Tier 1 customer and as well, volume wafer starts in Israel Fab 2 for another Tier 1 customer, providing substantial capacity increase in this growing market on top of the high capacity in our Newport Beach facility, which itself is realizing capacity increases this year. We have also made Silicon Germanium design kits available in our 300-millimeter Japan factory, Fab 7 for which an additional Tier 1 customer is presently in the design phase. For Silicon Photonics, in addition to our existing volume on 400 and 800 gigabit per second, current wafer starts now include a good ramp on 1.6 terabit per second as the industry continues to move aggressively to higher speeds, which is expected to further help market penetration of Silicon Photonics over legacy EML solutions, expanding our opportunity due to the cost and strong performance benefits of Silicon Photonics. In the first half of 2025 we've moved 5x more SiPho products from preproduction to production phase than in the same period in 2024, already exceeding last year's total. This growth demonstrates our platform maturity, strong customer adoption, and efficient operational scalability. Today, most Silicon Photonics products we manufacture serve the transmit function in an optical transceiver module. This quarter, we successfully prototyped a new 300-millimeter Silicon Photonics technology that enables a cost and performance advantage to the receive function in an optical transceiver module. This new technology is expected to see initial production in the fourth quarter of this year, expanding the market served by our Silicon Photonics technology beyond that which we serve today. By leveraging the majority of features in our mature SiPho platform and adding evolutionary customer-partnered improvements to this base process, we've been able to quickly ramp up and achieve high yields for 200 gigabit per second lanes, 1.6 terabit per second optical transceiver products. The transition of 400 gigabit per second lane, 3.2 terabit per second, requires additional and fundamental device, process improvements and new materials, which Tower is aggressively pursuing together with Tier 1 customers. The first of these platforms is anticipated to ramp as early as mid-2026. Slide 5 shows cumulative wafer bill to date for 400G, 800G at 1.6T speed. Presently, we are manufacturing similar amounts of each offering. Looking at prototypes, there's further acceleration of 1.6T with 40% higher year-to-date prototypes at 1.6T, above 400G and 800G combined, serving multiple large customers. We are seeing recovery in our RF mobile business, specifically in RFSOI, which showed a Q2 to Q1 revenue increase of over 20% and is expected to show further increases close to 30%, Q3 over Q2 and targeting further increase in Q4. We've gained momentum with a new North America Tier 1 customer now prototyping several products on RFSOI in our 300-millimeter facilities in both Japan and Italy. Beyond RFSOI, we're innovating with other RF switch technologies. This quarter, we won the IMS Best Paper Award with pSemi, a Marata fully owned company for our PCM phase change material switch technology, achieving a 15 zeptosecond or Ron-Coff figure of merit, being a 4x improvement versus state-of-the-art RFSOI. These switches are being prototyped for both low and high-frequency millimeter wave applications. And importantly, this quarter received a Best Supplier Award from Wisol, a major Korean RF front-end module provider. Looking at power management, the computational complexity of AI processors is increasing, leading to a corresponding rise in power requirements. To meet this need, as shown on Slide 6, we provide a variety of power management solutions with switch devices that have ultra low resistance, advanced digital logic integration, and manufacturing options in our 300-millimeter lines in the U.S. and Japan. Lead customers are now designing to our high-efficiency power delivery solutions for this rapidly growing market. We deliver best-in-class power transistor performance and continue to advance this offering having released device optimization for higher switching frequencies this past quarter. For sensors and displays, we expect a revenue increase of about 20% in the second half of 2025 against the previous quarters and previous year's run rate, primarily due to increases in the machine vision market. We have also begun substantial new activities with several customers, including a leading automotive imager provider and an OLED on silicon supplier, the latter of which has prototypes already in test. These new activities are expected to fuel additional future growth. Looking at utilizations, in the second quarter, Fab 2 in Israel and Fab 9 in Texas both operated at about 60% utilization while repurposing tools to now load high levels of Silicon Germanium and to begin the manufacture of Silicon Photonics. Fab 3 is fully utilized at our 85% utilization model. Fab 5 was at 75% with rising demand for high-voltage power management and Fab 7 300-millimeter was fully utilized, well exceeding the 85% model. In summary, our business continues to advance with significant progress across key platforms. We are well positioned for continued growth and success in our target markets. We are successfully executing to a clear strategy that is translating into tangible financial results with expanding customer engagements and measurable operational progress. We are committed to delivering sustainable and long-term value to our stakeholders. With that, I'd like to turn the call to our CFO, Oren Shirazi. Oren, please.

Hello, everyone. Earlier today, we released our financial results for the second quarter of 2025. For the second quarter of 2025, we reported revenue of $372 million representing a $21 million or 6% year-over-year revenue increase compared to the same quarter in 2024 and a $14 million or 4% quarter-over-quarter revenue increase compared to the prior quarter. Gross profit and operating profit for the second quarter of 2025 were $80 million and $40 million, respectively, each higher than the prior quarter by $7 million. Net profit for the second quarter of 2025 was $47 million, also $7 million higher quarter-over-quarter, representing $0.42 basic and $0.41 diluted earnings per share. Financing and other income net in Q2 '25 was $14.4 million compared to $10.6 million in the prior quarter. This $3.8 million increase was mainly attributable to a gain recorded as a result of a zero-cost cylinder transaction we executed to hedge future foreign currency risk. In this respect, I would now like to describe our currency hedging activities. In relation to the Japanese yen, since majority of TPSCo's revenue is denominated in yen and the vast majority of EPS costs are in yen, we have a natural hedge over most of our Japanese business and operations. To mitigate part of the remaining yen exposure, we are executing zero-cost cylinder transactions to hedge the currency fluctuations. Hence, while the yen rate against the U.S. dollar may fluctuate, the impact on our margins is limited. In relation to the Israeli shekel and euro currencies, while we have no revenues in such currencies, since a portion of our cost in Israel is denominated in Israeli currency, and a portion of our cost in Agrate fab in Italy is denominated in euro. We also hedge a large portion of such currencies risk by engaging zero-cost cylinder transactions to mitigate exposure resulting from our NIS and euro-denominated costs. Under GAAP, the fair value of such transactions is recorded in the P&L., which drove the previously stated financing and other income net increase. Moving to our balance sheet and future CapEx and cash plans. Our balance sheet remains very strong as evidenced by the following indicators and financial ratios. As of the end of June 2025, our assets totaled $3.2 billion, primarily comprised of $1.4 billion in fixed assets net predominantly comprised of fab machinery and $1.8 billion of current assets. Current assets ratio is very strong at about 7x while shareholders' equity reached a record of $2.8 billion at the end of June 2025. Our strong financial position allows us to invest in strategic opportunities that support our corporate vision as follows: we have committed to pay up to $300 million to acquire equipment and CapEx in the 12-inch New Mexico fab. 20% of which has been already paid while the remaining 80% are forecasted to be paid as we ramp up capacity and technology qualifications over the next 2.5 years. As part of our STMicro partnership, $500 million in cash is allocated for the Italy 12-inch fab equipment. We've already invested 85% of it, while the balance is expected to be paid by mid-2026. In addition, for our high-margin SiPho and 5G business, we announced plans to invest $350 million to expand our capacity in our 8-inch fabs in Israel and Texas and in our 12-inch Uozu fab in Japan. This CapEx includes a large portion of capability CapEx for advanced development and high-end RF technology-related projects. 40% of this amount has been paid to date while the remaining 60% are expected to be paid by the end of 2026. All of these investments, including the 5G and SiPho CapEx are fully reflected in our previously presented strategic and financial model. Under this model, we target $2.7 billion in annual revenue at full loading of our existing fabs, including Agrate and New Mexico. $560 million per annum of operating profit and $500 million per annum of net profit. That concludes my prepared remarks. Now I'd like to turn the call back to the operator so we can take your questions. Thank you.

The question comes from the line of Cody Acree from Benchmark Company.

Congratulations on an excellent quarter and a successful year. It looks promising so far. If possible, could you provide more details on which segments you anticipate will contribute and perhaps rank them in order for your sequential growth through the second half of the year?

So first and foremost is infrastructure as far as quarter-over-quarter deltas and absolute numbers, so the Silicon Germanium and the Silicon Photonics. We had stated at the year's onset that on SiPho, we had, had what, circa $105 million revenue in 2024, and we expect to double that in 2025. That's definitely within the second half targets that were given, maybe higher than a doubling. So that's a very important segment for us. And maybe, I don't know, in some summary comments, I might give some more color on what the capacity increases that we're doing there, what that could result in increases against what we're targeting in the fourth quarter of this year. But that's the biggest. Our power management, we're expecting still strong contributions. I mentioned that in the imaging, there was an over 20% increase in the run rate of 2024 and the first two quarters of 2025 in the second half, at least from what we target right now from our customer forecast and that mainly due to increase in machine vision. So those are the areas of growth. But very important on a rebound is the weakness that we had cited previously in RFSOI for front-end module for mobile. That has seen a nice increase from Q1 to Q2, and we're guiding an even stronger increase in the third quarter. So the biggest, again, being infrastructure and RFSOI for mobile, power management continuing strong and CIS adding to it as well.

It seems there's strong performance overall, Russell. Congratulations. Would you say that you are now fully booked for the remainder of the year? If so, do you have any capacity to take on near-term turns business that could enhance your estimates?

We had mentioned a 60% utilization in Fab 2 and in San Antonio Fab 9. We certainly have room there for immediate upsides. But the biggest portion of both of those fabs is focused on utilizing the additional SiGe and SiPho capacity that we've built there, which is to an extent in our hands, to an extent, rests on completion of customer qualifications, but that's within the numbers of the expectations that we have. So we see those utilizations increasing. But as we're doing that, there is room to handle immediate upsides. One of the really, I think, unique features of Tower is that we have a very strong worldwide manufacturing footprint where we're in Japan, we're in multiple sites in the U.S., we're in Israel, and we're in Italy. And by definition, we cross-qualify all of our flows. So as there continues to be questions geopolitically and people get concerned a little bit here or there about tariffs and impacts of tariffs, we have the ability to move customer demands from one factory to another. One of the strong reasons of moving Silicon Photonics and SiPho, both and especially SiPho being very, very high-margin value-add products is, firstly, to have added capacity, but secondly, to be able to serve customers depending on their needs of where to ship products from. So I think we've seen some immediate-term business, especially in the Tonami Fab 5 in Japan, in the power, and we're open to get more. But fundamentally, where we're focused at this point is meeting a very strong, consistently growing demand for the infrastructure, the SiPho and the SiGe. Hopefully, that answered your question, Cody.

It does, Russell. Congratulations on progress.

And the question comes from the line of Richard Shannon from Craig-Hallum Capital Group.

Congratulations on the impressive numbers. I have a question regarding Silicon Photonics. You mentioned previously supporting transmit functions and now moving towards prototyping for some aspects on the receive side. I would like to learn more about that, as well as your expectations for content growth in Silicon Photonics over the next few years, including both the maximum potential and anticipated growth.

For the specific receive function we are currently developing, we believe it is tailored for a particular application. I prefer not to divulge too many details to avoid giving away hints about our project. However, we have innovatively addressed this specific application of the receive function with SiPho in a highly efficient and cost-effective manner. We estimate that this will increase our served market by around 20% for this application. Regarding demand and our anticipated growth, particularly in the fourth quarter, we expect a significant rise in Silicon Photonic shipments. By the end of 2026, we foresee a doubling of customer demand in SiPho, which would require us to double our capacity to meet this demand.

Okay. Fair enough. That's one way to look at it. I appreciate those comments. So my follow-on question, Russell, is in the RF mobile space here. I guess the way I'd like to think about this is to what degree are we seeing this improvement both in the second quarter, and I think you're talking about the third quarter at least, or potentially second half of the year here about this improvement here. To what degree is this cyclical like inventory replenishment and/or share gains here? And to what degree does that play into your comment from last quarter about seeing some strong growth in our mobile in both '26 and '27?

I don't see the 20% growth that we had in Q2 over Q1 and the 30% that we're targeting in Q3 over Q2 as cyclicality. It's hard to speak about cyclicality. But certainly, it's related to inventories having been consumed that had been a function of the very strong 2024. We also have multiple customers that themselves are growing their market share. So that's one way that one can always outdo a market trend is by serving customers that they themselves are growing their market share against others that you might not be serving. So the Q3, Q4 numbers that we're looking at, I think that they're just very basic share gains that we have, and our customers have. Some of what we would be expecting in the latter half of Q3 and Q4 deals with an existing customer that we've had for a long time that has just recently increased their forecast and their POs. What has driven that? I honestly don't know at the moment. There are POs that have come in just recently.

And the question comes from the line of Mehdi Hosseini from Susquehanna Financial Group.

I have two questions. First, Russell, I would like to understand the broader perspective, particularly regarding data center infrastructure. We are transitioning from copper to pluggable technology and eventually to co-packaged optics. I want to know how you see your customers evolving in this context and how you are planning for capacity. Specifically, how do you plan to avoid an excess of capacity being introduced at once, considering there is a convergence among our customers? Additionally, how does the shift in technology from copper to pluggable and ultimately to co-packaged optics influence your capacity planning based on the changing mix of customers? I have a follow-up question.

The first part of your question is not entirely clear to me. However, I believe that pluggables have been a staple for several years, and I don't view them as competing with copper. Pluggables remain essential. The key aspect for SiPho is the shift from an EML solution, which has been dominant, to a SiPho solution. I don't fully grasp the copper reference. Nonetheless, a significant customer of ours at 1.6T has chosen to use only SiPho instead of EML for two reasons related to SiPho: cost efficiency, since it eliminates the need for a separate indium phosphide modulator laser, which is complicated and costly, and the integration of all the passive components. This results in a clear cost advantage, along with a notable performance improvement at 1.6T due to the integration on the PIC. As mentioned in the script, we see the 1.6T as a significant driver for a shift from EML to SiPho, due to its cost and performance benefits. I can't provide the exact percentage of SiPho compared to EML, but I can confirm that demand for SiPho is currently strong and continues to grow rapidly, particularly at the 1.6T level. As we transition to 3.2T, we are collaborating with leading customers to develop the necessary capabilities, which involves creating a 400 gigabit per second modulator using different materials, and we are making good progress with two material types. I expect pluggables will remain strong for a considerable time. Some in the industry doubt that CPO will truly enter the market. While I'm not claiming it won't, we have our own approach to CPO and are progressing with it effectively. If CPO does enter, it likely won't be until 2029 or 2030. Everything we do with SiGe and SiPho will remain in demand, so I don't see this as something we would overlook.

Great. Actually, as a follow-up to it, I want to understand how integrating the modulator into your process technology is perhaps helping you with incremental revenue per wafer? Is that how we should think about it?

For SiPho, the modulator is always part of the PIC. So we're going from using our capabilities for the photodetector and the modulator where we have strong capabilities in Germanium and Silicon obviously, to being able to provide that as part of the PIC. And that is one of the benefits of silicon photonics itself. That's one of the big drivers of it. Otherwise, you're doing things in indium phosphide outside. And as I stated previously, the process to make the indium phosphide modulator in addition to the laser, it's a very complicated process because it's different layerings for both that are done together. So it's many photo steps, asking steps, and growth. Does that answer your question? I'm not sure.

Yes, absolutely. I want to make sure I understand that the indium phosphide alternative highlighted by one or two of your competitors has a cost disadvantage and that your solution is more cost-effective, correct?

Yes, I believe so. But most of our customers still use an EML solution, right? It's a question of that also turning to SiPho for certain speeds, and it appears that the SiPho adoption is only growing at 1.6T, and I believe will be stronger beyond.

Now we're going to take our last question for today, and it comes from the line of Lisa Thompson from Zacks Investment Research.

I'm looking at the numbers, and it really seems like RF mobile has come roaring back. Do you think between RF mobile and our infrastructure, they're both going to come in pretty much the same for the year? Or can mobile even beat that?

Let me take a look. No, infrastructure will be substantially larger, but the mobile sector is also significant. It's important to understand that for infrastructure, we are serving two different products, both of which are necessary. One is the SiGe for drivers and TIAs, and sometimes sold for CDRs, and the other is the SiPho for the PIC. We also have RFSOI and are producing some plain RF CMOS for controllers, but the majority is RFSOI. So, infrastructure is indeed larger. However, considering the numbers from Q3 and Q4, the mobile figures are at a very high run rate, comparable to previous years.

That's great. If you had to describe why it's come back so much? Is it just specific customers? Or is it the market?

I think a combination of both. As stated, we have customers that they themselves are growing market share against their competitors that, in some cases, we do not serve. So that's always a big thing when you're increasing your share of market. And I stated it at the beginning of the year, we had seen, I think not just us, but many people saw a pullback in mobile for the fact that '24 had been a very big growth year in mobile. Nobody wants to short-ship their end customer for the fear of losing SKUs. So they built up more inventory than is needed, not knowing when there would be a glut, so to speak, and that's how you have inventory correction. So at the beginning of the year, certainly sort of inventory correction from everything we're seeing now, it appears that most of that inventory has been eaten up.

No, I think we had a good gain here, like I mentioned in my prepared remarks, that caused the majority of the $3.8 million increase, which is good in financing and other income net from the $10.6 million we presented last quarter to $14.4 million this quarter. I think the number we should expect in the future is the same like the baseline of the $10.6 million. This was a gain from movement in this quarter, but I cannot predict the future. So I would use the same baseline, which includes all the numbers without any exceptional items or one-time, $10.6 million.

And the question comes from the line of Richard Shannon from Craig-Hallum Capital Group.

Let me ask a couple of follow-up questions. Russell, one for you here. Back on the third quarter call of '23, you outlined a framework regarding revenue and profitability. I have two questions about this. How do you believe you are progressing so far, nearly two years in, regarding the margin profile at both the gross and EBIT lines? Additionally, I’d like to push you for your thoughts on the timeline for reaching this revenue goal. Do you have any insights to share?

You're referring to the model of the $2.7 billion? On a margin perspective, I think we're probably outperforming from everything that we're doing. On a timeline to the $2.7 billion, candidly, we are always looking at somewhere at '28, '29 to be there. And I think that's still what our targets are.

Okay, that's helpful. My follow-up question is for Oren. I would like to know if there’s any way you can quantify this, as well as your thoughts on how we should consider the growth in depreciation as we increase our capital expenditures. Additionally, regarding free cash flow, we expect it to be negative due to our significant CapEx investment. How should we view next year? Are we looking at a positive outcome? Any characterization you can provide would be appreciated.

Depreciation is shown in one of the tables in the press release under cash flow, specifically in the depreciation and amortization line, which includes RF amortization, with amounts around $65 million to $70 million per quarter. We anticipate these levels to remain relatively stable, possibly with a slight increase due to the added CapEx raising depreciation, while some depreciation will decrease from previous investments. Your observation about the current CapEx being higher than in the past is valid, so we expect a modest rise in depreciation, but most of it is fixed costs, and I don't foresee it exceeding the $70 million to $75 million we reported for the third quarter. Regarding free cash flow, we've noticed consistent performance in recent quarters, where cash from operations aligns closely with CapEx. This is linked to the total $1.15 billion in CapEx we've confirmed, which includes $500 million for Agrate, $300 million for 11X, and $350 million for SiPho and SiGe. There is still more than $500 million of this which has yet to be disbursed, and this will factor into the CapEx for the remainder of 2025 and possibly into 2026 and some into 2027. I expect the total quarterly CapEx to stay similar now, possibly increasing slightly, estimating between $100 million to $120 million per quarter. However, cash from operations should continue its upward trend as revenues improve, with mid-range guidance at $395 million and a potential target for Q4 even higher. Therefore, cash from operations is expected to rise while CapEx remains at levels reflecting the new $1.15 billion plans.

Now we're going to take our last question for today, and it comes from the line of Mehdi Hosseini from Susquehanna Financial Group.

Yes, two follow-ups. One on OpEx. Should I assume that OpEx in '25 would trend flat to up on a year-over-year basis? Is that a fair assumption? And I have a follow-up.

Yes, we believe that fixed costs and operating expenses should remain stable at the current quarterly rate of approximately $40 million.

Okay. And then going back to the previous question regarding cash flow. You've actually done a good job of funding the CapEx and actually maintaining a stable net cash per share. Is there any plans for the cash? Or should I just assume that you would rather be conservative and just accumulate cash beyond funding the CapEx. Any additional thoughts you can share with us?

Yes. As you mentioned, we see our cash being directed towards CapEx growth, which is why we approved a $1.15 billion CapEx spend over the past few years for the interfab, Agrate fab, and SiPho and SiGe projects. We believe this investment will provide the best returns for our shareholders as we see revenue growth, as Russell described, showing remarkable quarter-over-quarter growth this year. That’s how we plan to utilize our cash.

Dear speakers, there are no further questions for today. I would now like to hand the conference over to Russell Ellwanger for any closing remarks.

Thank you all for joining the call and for your interest in the company. I appreciate the insightful questions. We had a strong second quarter and anticipate an even better third quarter, aiming for record revenue in the fourth quarter. I addressed some inquiries regarding our expansions in Silicon Germanium and Silicon Photonics capacity. We expect to see the benefits of these enhancements starting in the third and fourth quarters. Looking ahead, by the second half of 2026, our end-state capacity will increase by 33% in Silicon Germanium and be 2.2 times larger in Silicon Photonics compared to our targeted shipments for the fourth quarter of 2025, with total revenue expected to exceed $435 million. Importantly, this capacity growth aligns well with our customers' projected demand, which makes for a compelling narrative. We believe we are focused on the right markets, and our financial models are robust, with good ratios for net profit and incremental revenue to margin that should continue to improve. I want to thank everyone for their interest in our company as we engage in numerous activities in the upcoming quarters. We are particularly excited to host our 2025 Technical Global Symposium in China this September and in the U.S. in November. This symposium is our premier technology event, designed to connect with customers and partners while showcasing our specialty analog platforms and aligning on future initiatives for co-development. We will also be at several conferences, including the Needham Virtual Semiconductor Conference on August 20, the Jefferies Semi Conference on August 26 in Chicago, the Evercore ISI Conference on August 27 in Chicago, the Benchmark Tech, Media, and Telecom Conference on September 3 in New York, and the Jefferies TechTrek Conference on September 10 in Israel. I greatly appreciate your interest in our company, and we look forward to updating you on our progress towards our long-term goals, particularly in Q3 and Q4. Thank you very much.

This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.