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Edited Transcript of PKP.WA earnings conference call or presentation 24-Mar-20 10:30am GMT

Full Year 2019 PKP Cargo SA Earnings Call

Warszawa Mar 24, 2020 (Thomson StreetEvents) -- Edited Transcript of PKP Cargo SA earnings conference call or presentation Tuesday, March 24, 2020 at 10:30:00am GMT

TEXT version of Transcript


Corporate Participants


* Andrzej Banucha

Pkp Cargo S.A. - Deputy Director of the Bureau for Promotion & IR

* Czeslaw Warsewicz

Pkp Cargo S.A. - President of the Management Board & CEO




Czeslaw Warsewicz, Pkp Cargo S.A. - President of the Management Board & CEO [1]



Good afternoon. Good morning. I'd like to welcome all of the journalists, analysts, shareholders and all (technical difficulty). This call is about the earnings results that the PKP CARGO Group has generated in 2019. Today, of course, the top topic in the world and in Poland is the coronavirus because the epidemic threat is the most important issue in Poland.

So at the beginning of our meeting, I'd like to convey to you some of the information about the measures taken by PKP CARGO in conjunction with this virus. I'd like to calm our clients and shareholders that we continue to conduct our freight operations, both domestically and internationally, without any major disturbances because the cargo transport is not subject to any of the restrictions. So our trains are moving across Poland and across the borders without any difficulties. So we can say that the rail situation is much better than other means of transport.

We're also keen on our employees and maintaining our freight operations. And of course, this is a great importance to the economy during the period of this epidemic. And so that's why we've taken special measures to ensure that we don't have people falling sick. So we have our crisis management team. It's been in place since the 10th of March. It has implemented preventive measures within the group. So we have safety procedures that have been devised. We have special sanitary regimes in terms of our employees and, above all, of attraction crews as well as in our dispatching teams and other important functions in the discharging of our freight operations.

So we secure protective means for our employees, including liquids for the purposes of disinfection. So with respect to PKP CARGO and our subsidiaries, we have enabled our employees to work remotely, where possible. Of course, we're fully aware that because of this virus, the global economic trade has become softened. So some of factories in Europe are reducing their production, others are closed or working less intensively because of quarantine-related requirements. This can have an impact on cargo freight, for example, in the automotive industry, we also see that there's a decline in demand for cars. Because of this crisis, we see that the transport of other cargoes is suffering. We hope this is only a temporary state and in some period of time of the post economy. Of course, we're facing a major challenge to our growth. And thanks to the governmental program to support businesses, we'll be able to rebound.

We see growing interest in the New Silk Road to bring in products from -- and cargoes from China because the Chinese factories are coming back online, the ones that were shut down during the epidemic. One example I can give is our [Malaszewicze] terminal on the Eastern frontier. In March, over the last 3 weeks, we've had single-digit growth in transport that came through that border terminal, where we had a double-digit decline in February, and we had a small decline in January. So this is a good prognostic to show that the freight will grow over upcoming months. So this would be a more or less it -- in terms of some prefatory in our conference.

I would like to share information with you and deliver the presentation we've distributed. So I'd like to go ahead and share the results of the Group from 2019. So if we look at the fundamental data, I'm on Slide #4, right now. So you can see some of the key financial highlights. So our revenue was PLN 4.7 billion. Our EBITDA was PLN 816 million, and so it was PLN 723 million, when adjusted for IFRS 16. And so then our EBIT was PLN 143 million and PLN 121 million, when adjusted for IFRS 16. So this gave us basically a 2.9% profitability ratio.

And so now I'll walk through some of the next slides to talk about some of the other factors. For example, we can move on to Slide 6, and you can see basically our freight volume carried in 2019. So we had 108.6 million tons of cargo, and this was 10.9% less than in the previous year 2018. So above all, this was due to the downturn in bulk commodity freight. And so these are the parties that suffered the most during this period of downturn. So the biggest downturn where we had the biggest impact to the contribution was with respect to aggregates. So PLN it was 5.5 million less -- PLN 5.6 million less than in the previous year, and this was because of some of the perturbations to contract execution performance in 2019. And so we look at the plans and forecasts for upcoming years, I'll try to share some of that information with you on subsequent slides, so I want to discuss this in great detail, right now on this slide.

The second segment of bulk commodities, that's quite important to us is coal transport. And so this was lower year-on-year. Whereas in terms of market share, we were able to maintain a similar level as in previous years. But because of the stocks held by power plants, inventories and the purchases of renewable energy sources, especially from Western Europe on account of European regulations, this meant there is less demand for the transport of coal bulk commodities. And as a result, we had a lower amount of freight volume. And so it was down some 6% year-on-year.

And the third key element in decline was from metals and ores, and this was a result of Mittal shutting down the blast furnace in Krakow in April, and that affected us quite strongly. Now based on statements made by Mittal is to fire up production again. Hence so Mittal wants to fire that blast furnace up again, that's a positive signal. This process has been stopped because of the coronavirus epidemic. So we hope that after this pandemic ends, this decision be reinstated, and we'll see production back up online in Krakow. This would be an important signal and impulse for the carriage of metals and ores.

If we look at intermodal transport, we saw an increase of less than 3%. This is a very important market for us. Its relative share is growing of the pie. So you can see that it's becoming more and more important. So 9.5 million tons of cargo in intermodal transport. So this is one of the key axis of our strategy over the upcoming years that we will convert ourselves into a logistics operator, and we'll have a growing market share here in intermodal transport. So following the epidemic, we'll increase the pace of growth here between Asia and Europe, but also within Europe.

So to recap, if I may, the picture of our freight in 2019. So if you look at bulk commodities, these companies that do that had suffered from the downturn in the economy. So if you look at mining groups and others of that sort. So these clients were smaller, whereas in intermodal transport, we can see that the market saw some pretty substantial growth. So can say that the mix in 2019 wasn't so clear. And so this split depends on the entities and the segments, where operations were conducted. And so if you need some explanations about more detailed questions later, I'll be open to any questions you may wish to present after we complete the delivery of the presentation.

As I mentioned when speaking about aggregates, we saw a considerable decline year-on-year. We had a little bit more than 20 million tons in 2019. So we might ask what are the prospects for 2020 and the next 2 to 3 years. We have Slide 8, which gives us a very good assessment of the investments planned by the General Directorate for National Roads and Motorways, and then also the railway authority that has certain plans PKP PLK. So we have more than 1,000 kilometers of motorways and expressways that are in the plan, so 1,064 kilometers.

In Q1, we have plans tenders underway for 296 kilometers of new constructions of motorways and expressways. And the full year, as I said, is for 353 kilometers. So you can see from this table, that a large number of these decisions will be made in the upcoming months. The tenders have begun, some of them have been completed, like, for example, the S5 expressway, so for some 50 kilometers. So this has been completed. So we can say that the documentary speed and the tender speed in terms of selecting contractors is picking up pace. So according to what the General Directorate for National Roads and Motorways have said that there should be some 350-odd kilometers of tenders already decided or will be decided over the course of this year.

So on the bottom of Page 8, you can see what are the planned investments, the CapEx in this road authority of the General Directorate for National Roads and Motorways. So they want to move up from last year's CapEx spend of PLN 15.7 billion to PLN 21.5 billion, and this should be sustained for the next 4 years. So in 2020, we'll see a major growth over 2019, but this should be sustained for the next 4 years. So this is going to be a major year for road investments. So the biggest year will be 2021 with PLN 22.1 billion spent on that.

The same is true if we look at the plans that PLK has. And so they assume that there's going to be a major growth investments over 2019. This is PKP PLK. So in 2019, they -- their spend was PLN 11.1 billion. They plan to spend PLN 16.6 billion this year. So 2021, the plan is lower, but it continues to stay high. So [13.2] is quite high. So based on these 2 forecasts of efforts, CapEx spending by the General Directorate for Roads and Motorways and PKP PLK for railways, we should have a lot of spend there.

Of course, we're aware that there is a risk or uncertainty linked to the current situation involving the coronavirus and what sort of impact this may have on contractors' abilities to run these investments. So this is something that will be monitored. But as of today, the situation looks quite positive.

Perhaps, we can now move on to our financials. So I'll talk about the major parameters we delivered last year. So in revenue, so we had, as I mentioned, 4.8 -- nearly 4.8 -- PLN 4.9 billion. This was down by a little bit more than 7% than in 2018. But this level in 2019 was one of the higher levels for the entire period over which the company has been listed on the Warsaw Stock Exchange.

If we move to Slide 12, we can see our EBITDA PLN 816 million, PLN 723 million at a adjusted basis. So it's lower than last year. But if we look at the full period of our presence on the stock exchange, it was one of the better years than we've had.

If we go on to the next slide, which is EBIT, in the Slide 13. So PLN we had 143 million EBIT after adjustment for IFRS 16 was PLN 120 million. So this is 2.5% EBIT margin. So our EBIT just like our EBITDA was at a similar -- was of course, lower than in the previous year, but it's still one of the higher levels we've had over the period from 2015 until now. So this is something we could see quite clear on Slide 14.

Then we can go on to Slide 15 to see our net result. So our net profit was PLN 36 million, and our net margin was 0.7%. So it's down from the previous year by nearly PLN 150 million year-on-year, but we managed to stay in the black.

So to sum up, we can say that all levels of profitability, the group was in the black in 2019. Maybe a couple of words about our costs. So if we turn to Page 17, we can see the cost, the company generated in 2019. So they're down by 4.8%. This is a result of reducing variable expenses as we had less work done than in the previous year, and that's one of the reasons why this figure was reduced by slightly under 5%.

Maybe a couple of words or comments about these costs on Slide 18. As we look at unit costs. So they're up by 11% because we have a large preponderance of fixed costs like employee benefits. So of course, when we have less freight transport, these costs have a major impact. So we can say that there's not a major difference between the unit cost growth, and the revenues of 3% difference on a unit basis. So it's not a major difference.

So if you look at the next slide, we have our debt ratios. So this is Slide 19. Generally speaking, we can say that we have a safe level of debt. Cash flow -- our operating cash flow was more or less the same. So on investment activity, there's a difference of PLN 200 million, but this is a result of the investments undertaken by the company at the beginning of the year and largely related to strategic investments in order to bolster intermodal transport as well as the international cargo transport. So today, in 2020, here, we will be much more restrictive, and we anticipate substantially less investment expenditure than we had in 2019, 2018.

And so one key pillar we have in mind is the EBITDA we generate. So what is crucial to us as a management team, we want our investments not to exceed the quarterly EBITDA level. As I mentioned previously, our debt ratios are at safe level in terms of coverage and net debt-to-EBITDA, we're at a safe level and a good level. So if you look at available funding sources at the end of '19. So we had PLN 823 million in available funding sources.

Now we can go on to Slide 21. To some extent, this sums up what we've done in 2019, and moves into the future about what we intend or what we're doing now or what we intend to do in subsequent years. So as we've pursued this strategy, we've been able to prepare better for the current coronavirus crisis.

2019 was the first year in which the strategy was in force for the full year, and we've introduced many efficiency and growth-related initiatives. So we had some 13 initiatives. And so I would divide up our activities in strategy into 2 areas. One area is related to processes. The second is related to costs. So on the process side, we've been able to integrate the companies belonging to the PKP CARGO Group, and I'll show you some of the results in subsequent slides. Because as a result of the good results of the overall Group, and they've contributed to -- all these company subsidiaries have made a positive contribution, and we've been able to achieve those levels of profitability, I've already discussed. So this collaboration has delivered measurable results. We have also rationalized and consolidated PKP CARGO International. And in just a moment, I'll share some of the results. And the third crucial process, which also informs our business strength, is the integration of our terminals. We started that in June of last year, and this is something that we're moving -- we're doing at a pretty fast clip, and we'd like to integrate all 27 terminals by the end of this year. That function currently within the PKP CARGO Group, that's more or less related to process.

On the cost side, we've thrown a lot of attention -- we paid a lot of attention and spent a lot of effort to optimize our freight operations because this talks about the cost levels we generate. We've been able to shorten the time of performing these processes. We have inter-area jobs. We have lower reservation fees because we've been able to optimize unit trains. And the schedule, we've digitized this process. And so this is something that we're going to be able to do with more strength in the current year. We're working on this more honestly. And so this has delivered also measurable results. So these are some of the cost efforts that have rationalized our costs.

And the second thing is the number of employees within the PKP CARGO unit, we have 160 fewer FTEs, calculating from 31 December, 2018, to 31 December, 2019. So we're also adjusting our resources, our HR resources. And so that's something we began in 2019. So following trends in the market, especially at the end of the year in Q4, because in Q4, we saw that it was a difficult period for the cargo freight market. And so we saw some of that downturn in 2019. So this was one of those things that -- it was [GDP]. So as I mentioned, the strategy will have an impact on our efforts and what we want to do in 2020 as well.

So as I've mentioned, in 2020, we'd like, on one hand, to focus on operational efficiency, cost effectiveness in our freight operations. At the same time, we'd like to intensify and dynamize our sales efforts. So in 2020, we're going to focus strongly on selling more efficiently in our traditional bulk commodity segments. So we're thinking here about coal as well as aggregates. So we're going to be much more active. We are -- already are much more active on the commercial and marketing because we want to do a lot more here.

The second area that will be subject to greater activity is construction. We're building a very strong position for ourselves as a logistics operator. And here, we see 2 key efforts or processes. One thing is consolidation within PKP CARGO of intermodal transport. And so we see activity in terms of building a full fledged comprehensive offer for our customers, utilizing the strength of our organization in terms of sales and transshipment terminals so on and so forth. And so on a business footing, we'd like to roll this out just as we've consolidated and integrated the business efforts of the group. This has delivered some efforts.

So here, we're going to look at the value chain for ourselves as a logistics operator, and we want to do vertical integration. And so we want to make sure that we're going to be able to build a very strong position as a logistics operator and to give our customers our extensive door-to-door offer. The second thing that will support this process very strongly is we're going to look at our operator trains connections. So just like in passenger trains, we want to make sure that our customers have peace of mind that they know, that there's a train that's going -- or trains going in various directions every day, and they have certainty that their products will be -- cargo will be delivered. So this is a big opportunity for us at present. The current crisis linked to the coronavirus as well as transport across national frontiers. So we know that there's an opportunity here because even though there's less economic activity, the European countries as well as across the world are intensifying their rail transport. And this is one of the responses to the current challenges that Europe has and producers have as well as the logistics companies. So here again, we see a lot of opportunities. So building that schedule for operator trains is something that we're going to be working on over the coming days, weeks and months.

And so I've said a little bit more here about our strategic activities from last year and what we intend to do in the upcoming period. But as I wrap up the presentation, perhaps, I would just mention some of the important elements which I think are noteworthy. So if you look at Slide 22, you can see some of the best prospects for us in intermodal transport as we buy small space system locomotives and flatbed trains or cars or wagons. And this is something that we've launched last year, and this is something we'll continue this year. As I've mentioned, we have some information about key companies within the group to illustrate our activity and the results we've achieved, as I've mentioned. So our PKP CARGO International has effectively diversifies -- has effectively diversified its sources of revenue. And so a lot of their activity, 1/3 was intermodal. And so this shows PKP CARGO International is moving -- is -- team converted from a bulk freight operator, like coal from a single mine in the past. Now it's able to -- 1/3 of its freight turnover is done in the form of freight volume. And so basically, from a rail siding operator, it's become a intermodal or logistics operator. And so this is something that we want to continue to ratchet up.

So as I've communicated to you previously, the financial results are such that even though the revenue has fallen, we see -- so they were lower by some PLN 40 million, but the EBITDA result was basically double. And so in 2018, we had a losses of payments. And so then we had PLN 16 million net profit this year. So if we look at the results of the subsidiaries the EBITDA contributing, making a positive contribution to the overall Group's results. So just like at PKP CARGO International. So we had revenues down a little bit by almost 5%, but the EBITDA result was up substantially, nearly by 80%. And so we moved from a PLN 41 million loss to PLN 103 million net profit. So this shows the impact of some of the positive processes that are underway or were underway last year and will be continued this year.

That would be it from my side, perhaps that was a little lengthier presentation of the current situation and what's happened in 2019. I discussed them at greater length because the current situation is rather unusual, and it's little more difficult to have direct contact. And that's why I wanted to share with you some of the crucial elements and some of our accomplishments and plans for the upcoming future, basically to make sure that you have the full information about the strengths and weaknesses of our efforts. So I wanted to make you aware of the activities we're taking as a Management Board and as an entity. So I'd like to thank you for listening to this presentation.

Just as in previous conferences, it's possible to pose questions. And so now we'll wait for any questions you have by e-mail. And if those e-mail questions come in, then I'll go ahead and try to respond them. If questions are going to be more drill down questions or would require more profound analysis, then of course, we'll respond to your questions by e-mail. So to ensure that all of your information needs are satisfied, so we're not, of course, closing ourselves off in our communication. So if so, questions or doubts arise, we're at your disposal, the entire management team. But now on account of safety and the ability for the management to operate, we're limiting the whole Management Board interactions to make sure that the company can operate safely, as I said at the outset.

And as I wait for your questions, I wanted to emphasize, once again, that the current situation we're facing with the coronavirus has -- is not affecting our operational -- freight operations. So both domestically and internationally, everything is moving smoothly. None of our employees are infected with COVID-19. So the preventive actions we've taken up until now have been effective, and we've been able to defend ourselves against infections effectively.


Questions and Answers


Czeslaw Warsewicz, Pkp Cargo S.A. - President of the Management Board & CEO [1]


Are there any questions?


Andrzej Banucha, Pkp Cargo S.A. - Deputy Director of the Bureau for Promotion & IR [2]


Yes, we received several questions from a variety of persons. The most frequent question is the impact of the current virus on our freight operations. And after the end of the pandemic, do we believe that the intermodal transport will continue to grow?


Czeslaw Warsewicz, Pkp Cargo S.A. - President of the Management Board & CEO [3]


As I tried to present to you, the impact today is that, we're not growing as fast as we would like to grow. So our investment plans had posited that, also infrastructure plan. So today, if we look at recent weeks, we haven't seen any downturn in the freight operations compared to what was done in previous weeks. But this situation does have an impact that we're not been growing -- they're not growing as fast as we would like, and this could be the negative impact.

And if we look at the intermodal transport, after the pandemic comes to an end, like also in the presentation, I gave some data about operations at our border terminal in Malaszewicze, and we see some growth there. And we believe that this will -- the pace will pick up there, especially since we hear that Chinese factories are coming back online. And we believe that the rail has major advantages over other means of transport, especially rail -- sorry, especially marine transport. We're able to bring goods in by a month sooner. So during the first stage, even if the economic trade will be of lesser size between Asia and Europe, because of the speed at which this can be done, the rail network has a major advantage. So we hope that in the upcoming days and weeks, we'll be able to grow even faster.

As I mentioned, there is a decline in automotive. Basically, the automotive transport has died. So there will be a need for rapid transport of cargo, once things come back online. So after the pandemic disappears and dissipates, there will be a need to deliver quickly products to the end customer and to do this faster than other means of transport. So even if the economic activity level is suppressed and if GDP in Poland and Europe shrinks in a key period, we can be very competitive. But of course, we're going to have to observe what's going to happen. We do see some positive signals in terms of transport from China. So we anticipate that this will grow.


Andrzej Banucha, Pkp Cargo S.A. - Deputy Director of the Bureau for Promotion & IR [4]


The next two questions, rather frequent, have already been discussed. But once again, your CapEx plan for '20, 2021 and your staff costs. And talks with tradings. What's the general tone and what can we anticipate have happened here?


Czeslaw Warsewicz, Pkp Cargo S.A. - President of the Management Board & CEO [5]


I've already mentioned CapEx. So in 2020, we don't know what's going to happen with the situation, but CapEx will be much smaller than in 2019. The key pillar, we at the management team have embraced is that our CapEx spend cannot exceed our quarterly EBITDA, and we want to stick to this very strongly. This will depend on when freight will be resumed. One of the three projects to buy is flatbed wagons, using EU funds is ongoing. It's just a strategic direction for our expansion and the needs, we'll have after this pandemic, I hope quickly ends.

If we look at staff costs, because of communication difficulties, this is a topic that's somehow been frozen. The situation is difficult. Our social partners, I think, understand the situation. So it's clear that our HR resources have to be aligned to the freight operations we run. As I mentioned, the headcount fell by more than 160 persons. And so we will undertake these talks. And of course, we talk with the trade unions on ongoing basis. And I think, there's an understanding on both sides that optimizing, rationalizing is necessary. So rationalization of admin expenses. This is one of the areas where we're going to be highly interested, and we'll analyze that the near time -- in the near future, it's a subject of ongoing monitoring.

So we'll be very active in sales efforts. And so we have a bigger role to play in bulk commodity transport. And then we'll see higher intermodal transport, and this is something that we pay a lot of attention to. So it depends on how we're going to be able to expand this market in those 2 segments. And so our activity here to rationalize the costs will be continued. And so in all of our areas, we'll be making analysis in all of these departments. But the bulk of our activity, negotiations will be handled once we're going to be able to communicate with one other on unfettered basis.


Andrzej Banucha, Pkp Cargo S.A. - Deputy Director of the Bureau for Promotion & IR [6]


The next two questions have appeared, it's about the holding of all PKP companies, what would happen and if so, in what form? The other question is about the adjustments to rolling stock in terms of quiet braking and requirements in Western Europe. What percentage of our rolling stock or wagons has been adopted to the new requirements?


Czeslaw Warsewicz, Pkp Cargo S.A. - President of the Management Board & CEO [7]


So the first question about the PKP Holdings. This is a question to our shareholder, PKP S.A., and I really wouldn't want to dwell on that response at any greater length. If you look at our rolling stock and adjustments to ensure that they become quiet wagons, especially the requirements implemented by some EU member states like Germany and Switzerland, if I remember correctly, as of December, it's a requirement to utilize only quiet wagons. So all of the wagons that are used there, already have the proper brakes pads. So there are no risks that ours will not be fitted to the needs. So I think, we're talking about 13,000. But in terms of the specific number, I'll give that if it's needed, greatly. So there's no risk that our wagons can't handle that international traffic, especially between Poland and Germany. Because according to EU regulations, we have time until the end of 2023. So we have a little bit more time. The German regulations and the Swiss regulations at a domestic level have made those requirements more stringent, but we've already adapted ourselves to those more stringent requirements.

Anything else?


Andrzej Banucha, Pkp Cargo S.A. - Deputy Director of the Bureau for Promotion & IR [8]


Two more questions. There's a question about possible responses to the crisis situation. Is the company considering a right offering? And the second question is also about rolling stock. What's your strategy call for leasing more rolling stock or buying -- as becoming the owner of rolling stock?


Czeslaw Warsewicz, Pkp Cargo S.A. - President of the Management Board & CEO [9]


In terms of our activity to adapt to the changing market situation, of course, we react flexibly. Today, the impact of the coronavirus on our operations is not significant. We don't know what awaits us, what the impact will be on other industries. So the infrastructure industry, we're in close links for coal transport. It seems to us that this crisis has fewer interlinks with bulk commodities because they have to be delivered. Perhaps some of the other ones aren't growing as fast as we would like, and we don't see a major collapse in freight, so of aggregates. But having in mind EU funding, aggregates should see growth. But the power sector will move away from coal. There'll be less and less demand for coal transport, but this decline will be more akin to an evolution of several percentage points at a time. And so what would be massive. So if we look at some of the other areas where we're active, we do not see any cause for us to anticipate any dramatic declines. However, we will observe the situation. A team -- a crisis management team has been formed to ensure that we have safe and efficient freight operations. So if there are any deviations, then we'll make the necessary decisions as required to ensure that all of our resources, personnel and other assets would be aligned to the requirements of the market. This is something that we'll see in 2 to 3 months. So we continue to analyze this and adjust our resources.

If we look at your second question about the utilization of our resources, whether or not we're going to lease or buy rolling stock, more than 90% of our freight is carried using rolling stock we own. If we look at the market and its needs, we don't know what sort of needs the market will have in the future. We don't see any reason to ratchet up our rolling stock by buying or leasing it. In the next few months, we don't see that. So we don't see any major activity in one area or the other. We want to maintain the current rolling stock. So having in mind the rolling stock resources we have and we will to use to the best extent as possible if there are going to be different types of rolling stock needed, then we'll try to adapt to that as acquired.

The question -- the 8 -- 7, 8 questions that were asked, which were more or less replicated in the course of our conversation. I'd hope that we -- I've managed to discuss them, and I would propose that we wrap up our discussion about these questions. As I said, if you need any additional information or explanations, we're at your disposal, myself, the entire management team respond to your questions also by e-mail. So in that case, I would ask you to call us or write an e-mail.

So today, I'd like to thank you for your attention, for your attendance, for listening to us during this atypical conference, for the first time, that's been done remotely and without any direct attendee participation. So we attempt to adapt to the circumstances just like the entire company, PKP CARGO. So I'd like to wish you a lot of health and safety in the upcoming days and times. Thank you.

[Statements in English on this transcript were spoken by an interpreter present on the live call].