Good morning, ladies and gentlemen. Welcome to BRP Inc.’s FY 2022 Fourth Quarter Results Conference Call. For participants who use the telephone line, it is recommended to turn off the sound on your device. I would now like to turn the meeting over to Mr. Philippe Deschênes. Please go ahead, Mr. Deschênes. Philippe Deschênes: Thank you, Julie, and good morning and welcome to BRP’s conference call for its fourth quarter and year-end results for fiscal ‘22. Joining me this morning are José Boisjoli, President and Chief Executive Officer; and Sébastien Martel, Chief Financial Officer. Before we move to the prepared remarks, I would like to remind everyone that certain forward-looking statements will be made during the call and that the actual results could differ from those implied in these statements. The forward-looking information is based on certain assumptions and is subject to risks and uncertainties, and I invite you to consult BRP’s MD&A for a complete list of these. Also during the call, reference will be made to supporting slides, and you can find the presentation on our website at brp.com under the Investor Relations section. So with that, I’ll turn the call over to José. José Boisjoli: Thank you, Philippe. Good morning, everyone, and thank you for joining us. Please turn to Slide 4. I’m very pleased with our fourth quarter performance, which concluded an exceptional year, with delivered record annual financial results reaching the highest revenue and profitability in our history. Our team continue to gain market share in our product line in the powersports industry, while managing to supply chain pressure, demonstrating solid execution once again. In fact, our manufacturing and GDP allow us to better serve our dealer and customers alike. Moreover, during the year, we’ve delivered capacity expansion project on time and on budget. Our…

Thank you. [Operator Instructions] Our first question comes from Mark Petrie from CIBC. Please go ahead. Your line is open.

Yeah. Good morning. I just wanted to follow-up on the discussion with regards to margins for fiscal 2023 and then sort of the longer-term outlook. How much of the compression this year do you think is structural versus more temporary with the supply chain? And then could you just talk about the dynamics with regards to pricing? How much of that is in the market today and what you think the opportunity is as we progress through the year? Sébastien Martel: Yeah, good morning. When I look out for next year, we did talk about like a 200 basis point decline in margin. The volume is going to be a positive tailwind for us, probably 100 basis point increase and margin coming from volume, I talked about programs being more conservative as we expect some inventory to build up in the network. And so obviously, we want to make sure that the right level of programs are set there. That’s about 100 basis points of a headwind. And the structural event coming from inflation and then efficiencies, we believe will be with us for most of fiscal 2023, and that’s about the 200 basis point headwind for us. In terms of pricing, we’ve done pricing adjustments in January, and obviously that’s reflected in our guidance. And we do anticipate as well to adjust pricing further come the next model year change. So that happens usually in the late second quarter period. Usually, we do a 1% price increase, but this year, we anticipate that the price increase will be obviously higher than the standard 1% to account for higher inflation.

Understood. Okay, that’s helpful. And José, you highlighted the strong growth that you guys continue to see in terms of new entrants or new customers entering the powersports industry. But wonder if you could just talk about sort of what you’re seeing from existing customers, I think there’s been some ups and downs with that cohort just based, I think, mostly on limited product availability. So what’s your perspective for this year, either versus last year or versus sort of pre-pandemic levels? José Boisjoli: Good morning, Mark. To be honest, not much change. Again, for new entrants, we’re tracking – we’re still tracking about 30% versus historically 20% and repurchase and then it’s remaining, the – then not much change with the existing customers. One trend is up there is the customer more and more are ready to preorder a unit to give a deposit to secure the delivery. And we saw, like I saw in my my notes, snowmobile presales is 100% above last year, watercraft is about 25% above last year, and it’s – it was too very successful year last year, then we don’t see much change in existing customers except the customer is more ready than ever before to secure their purchase sooner than never before.

Okay, understood. I appreciate the comments and wish you all the best. José Boisjoli: Thank you.

Our next question comes from Robin Farley from UBS. Please go ahead. Your line is open.

Great, thanks. Two questions. One is any talks about inventory being down about 60% versus pre-pandemic? And I think you’ve also talked about that in there probably doesn’t need to go all the way back to those levels. How should we think about what amount of shipments would you need just to restock dealers to kind of whatever that new normal will be, if you could help us quantify that as a percent of retail or shipments or something just kind of how we should think about what that restocking amount is? And then basically, the second question on the electric bike market and by the way was that introduction in 2014 is that – fiscal or calendar 2024, the market that when you refer to the 600,000 sort of addressable market, is that like combustion engine motorcycles today that you think become electric? Or can you talk about how big the electric bike market specifically might be in, let’s say, calendar 2025? Thanks. Sébastien Martel: Good morning, Robin. I’ll take the first question and José will take the second one. On the restocking opportunity, there is a big opportunity for BRP to just replenish the inventory. Obviously, the industry has grown – our market share has grown as well. But to put it in simple terms, when I look at the restocking opportunity, it’s about a quarter’s worth of wholesale revenue. That’s how big of an opportunity it is. So – and when is that going to happen? Most likely, as I said, it’s going to happen next year in fiscal year 2024. So with that, I’ll turn it over to José. José Boisjoli: Yeah, good morning, Robin. And then just to make sure, I will repeat a bit what I said in my note in the intro, then…

Is there a percent even if it’s very ballpark of what you think that markets? What percent of what’s internal combustion engine today would be electric by 2025? José Boisjoli: Yeah, this is a tough question, Robin. The – how fast the customer will accept electric is very difficult to predict. We see right now in the car quite a very fast acceleration of those trends. Obviously, there is more offering than ever before. On top of it, there is some restrictions that are coming in many country then and it is trendy, a lot more people want to ride electric, then we don’t have much hard data on this. But we want to be in front of the wave to make sure that we are one of the first to benefit off this trend in terms of consumers and we believe it is the right thing to do and a very good opportunity for us.

Okay, great. Thank you very much.

Next question comes from Martin Landry from Stifel GMP. Please go ahead. Your line is open.

Hi, good morning, everyone. My first question, Sébastien, on your revenue guidance of a growth of 24% to 29%. I’m wondering if it’d be possible to break down the growth between units and pricing? Sébastien Martel: Yes, is that your only question or?

No. No, I have another question. Sébastien Martel: When you have about introduced in terms of pure pricing there for next year, full year compared to this year, you have about a 4% increase coming from pricing,

So, okay. Okay, that’s helpful. Thank you. And then, I believe you mentioned that 17% EBITDA margin implied in your guidance for fiscal 2023. It’s a level that you see how sustainable on a go-forward basis for future years. It’s much higher than your EBITDA margins that you had before COVID, which were around 12.5%. So wondering if you could bridge for us the difference, what are the the puts and takes that explains that uptick in your profitability? Sébastien Martel: Yeah, if you go to Slide 17, which I shared this morning, obviously, there are several Whitsundays, but the main one is, obviously, our business has grown compared to what it was pre-COVID. And also, our footprint – our manufacturing footprint has also changed. We are leveraging our Mexican operations, we have grown in Mexico, and that obviously provides us with a huge opportunity to improve margin through the more efficient and better cost operations. And also, the third element, I think, is the overall environment around sales programs. There were a lot of learnings that came out of COVID, that we will continue applying going forward. And so there’s a few 100 basis points that will be coming from a, I guess, a more, a better managed retail programming environment, better managed inventory as well at the dealer network, these would be the three main elements that would drive sustained margin growth. And when you look at other OEMs, in the past, many of them have been able to sustain these types of margins as well. And one of the big drivers was the volume that came with their businesses. So that’s obviously something we’re benefiting from.

Okay, that’s helpful. Thank you, and congrats on the great results. José Boisjoli: Thank you, Martin.

Our next question comes from Craig Kennison from Baird. Please go ahead. Your line is open.

Hey, good morning. Thanks for taking my questions. Looking at world headlines, they’re certainly troublesome to say the least you’ve got war, oil, inflation, and then central bank policy. I guess first, have you seen any change in consumer trends since the outbreak of war? And then secondly, if we do enter a recession, what are the key pages of your recession playbook for management? José Boisjoli: Good morning, Craig. First, we didn’t see since the beginning any change in customer interests or behavior for our product line. As you know, we stopped delivery in Russia. But for fuel price, a lot of people talk about your price, but the increase in fuel costs is quite high. But this is a low impact in the cost of – for customer, and I’ll give you some number. A snowmobile customer and this is coming from our warranty data. The average customers on snowmobile spend about $500 season average on fuel. Then if you increase 30%, that’s $150. ATV customer is $200 a season, then that 30% translates to $60 more for a season. Then the fuel price, obviously, nobody liked it. But it’s like a minimal impact on the customer ownership for a season. The rate of inflation is – not the rate of inflation, interest rates are quite low. Then when you combine all this, we didn’t see yet any slowdown on any of customer interests. Sébastien Martel: Then if I talk about your question on recession, obviously, we’re a much different company than we were 10 years ago at the last recession. From a just a pure balance sheet point of view, obviously, we have a very strong balance sheet with low leverage at 1.2 times. And when you look at the overall powersport industry in the environment, there is very low inventory in the network. That means no need to put promotions and you’re able to continue to ship units to dealers, so you don’t have to shut off operations so drastically that what happened in 2008, 2009. Obviously, as a business, we’re much more diversified as well. Our product line, more product lines, we also have different product offering in terms of price points, entry level models that are there that weren’t there back in 2008 or 2009. Our business from a geography point of view, as well as well diversified with over $2 billion in revenue and international. Two other points, obviously, our manufacturing footprint in Mexico offers us with a lot of leverage opportunity in terms of efficient manufacturing. And I guess the last point and the key point is that it’s our lineup. We have a super, super good lineup that is very competitive. And so as a player in the market, we believe that we would come out very strong, as demand for the innovations that we’ve introduced recently is very good, then we expect that it would continue to outpace the industry, if a recession were to happen.

That’s very helpful. Thank you. And then just a follow-up on the electric motorcycle strategy, could you give an indication for what you think the margin profile of that business might be when it’s fully mature versus what maybe your core business performs at? Sébastien Martel: Well, obviously, we’re entering in this business because we believe it’s one, a good opportunity for us into what’s the profitable opportunity. And all our businesses, we have, obviously, multiple product lines, and they all have varying degrees of profitability. And we’re not entering into this business because we believe it’s going to be an underperformer versus other product lines. We are leveraging some of the obviously our footprint or supply chain or leadership, or brands. And so that provides us with an opportunity to be cost-efficient. And as you know, and as we’ve said, in the past, we are insourcing the technical know-how, as we’ve done for internal combustion engines, we’re doing the same thing with electric – electrification of our products. And so that also provides us with a cost competitive advantage in order to own this know-how, obviously, you’re – you make usually better profit. So overall, we’re excited about the opportunity. And it’s – it could be a sizable opportunity for us down the road. José Boisjoli: I also would add to Sébastien, you know us, we like to push technology and innovation. I mean, we intend to come with the product that will wow, the customers, we came up with some idea that we believe will make a difference. And we feel it’s a good opportunity.

Great, thank you.

Our next question comes from Xian Siew from BNP Paribas Exane. Please go ahead. Your line is open.

Hi, guys, Sean here. Thanks for all the details. Maybe on market share gains. How are you thinking about that for 2020 – or for fiscal 2023? You mentioned some limited availability hurt, maybe share in some categories for the quarter. But then you maybe that catches up and then you have strong volume expectations. Maybe some help on how you’re thinking about that for next year. And within that, I guess, what are your expectations for resale sales in fiscal 2023? José Boisjoli: Then on the retail, our market share gain, right now, the demand for product and the presales unit are so high that the market share gain depend more on our ability to supply in which product line in which quarter then I give an example. In Q4 because we’re getting into the peak of the snowmobile season, we favor snowmobile at the defend of watercraft in North America because in the North – in the snow belt, you don’t need a watercraft in Q4. Now we are shifting in Q1. And in Q1, obviously, the snowmobile production is done and we’re shifting to watercraft. Then starting from probably for the next 12 months, you need to be careful not to look at the retail by product line, by quarter because it depends a lot more what we prioritize versus the need for the industry and the supply chain constraints we could have. And that’s why I gave the example of the gauge family to better explain the idea. Then in term, obviously, I cannot give you this morning the market shared with planning by product line, but you see the type of growth we’re planning on the top line. Then this will obviously reflect on market share gain. That’s the extent I could answer your question.

Okay, got it. Yeah. And then that makes sense. And then maybe on the retrofit, this quarter you had a nice increase in the units kind of driven by that as you gave them the parts. I guess how many more units are out there in terms of retrofit? I know you’re adding more, but how many more – how do you think about that retrofit evolution to the year maybe? Sébastien Martel: We will continue using that strategy for the year. it will vary depending on the product line and the quarters in the month. But just to give you an appreciation of what it meant for Q4, the retrofit unit, the impact on revenues was about slightly above 5% impact on revenue. It’s our ability to accelerate the retrofitting of units that were there in Q3 that we retrofitted in Q4. Well, that’s the magnitude of it, and I’m not expecting it to vary that much quarter-to-quarter. José Boisjoli: But again, the strategy is to run the factory at maximum capacity. And when we have a missing part that is easy to retrofit, we prefer to ship it to the dealer because that’s easier to ship the component and you have a lot of theater repairing the unit then to serve our customer to deliver a unit to their customer in the season way faster, and this is a strategy that dealer prefer that we do this versus reducing our production and reducing their orders.

Okay, got it. Thank you.

Our next question comes from Brian Morrison from TD Securities. Please go ahead. Your line is open.

Hey, thanks very much. A couple of softballs, José. Just within those retrofits, can just break down by product line? Is that mostly ORVs at this point in time? José Boisjoli: It varies – we ship – we are in the peak personal watercraft season. So if we’re missing components on watercraft, and it’s something that could be refitted at the dealership, we’ll ship personal watercraft, it’s going to vary.

Okay. And then in terms of your working capital, you got a pretty big tailwind. I’m wandering in dollar volumes, what do you think the unwind will be this year? And if I look to fiscal 2024, should I expect CapEx still in that $700 million range? José Boisjoli: For CapEx, yes, you should expect it in that range going forward. And, yes, this year, the working cap should be a tailwind probably in the range of $200 million to $300 million.

Okay. And then last question, just with – kind of you alluded to a previous question this morning, just with world events. Is there any change to your geographic allocation? Like is Europe still going to be a 15% to 20% of your forecast revenue? Or is that what’s in your outlook? José Boisjoli: Well, obviously, we’ve reflected the – our decision to exit Russia and our guidance, and Russia was probably a business over $250 million, or 5% of – less than 5% of our revenues, call it, $200 million to $250 million. Ands so obviously, we’re not expecting a lot of revenue to be generated from that market this year. But the good news is we’re able to reallocate these units to other markets that are in need of units. So we’re not expecting a negative financial impact from our decision to pause shipments in Russia.

All right. And then just the cadence of switches that still $500 million target over three years and and how you should get there is kind of linear? Sébastien Martel: It’s still the target.

Thank you.

Our next question comes from Joe Altobello from Raymond James. Please go ahead. Your line is open.

Thanks. Hey, guys, good morning. Just a few questions on the outlook. I guess, first, you talked about EBITDA and how that’s going to progress throughout the year? Can you get a sense for what the cadence is for revenue, particularly in Q1? I’m trying to understand if a decline in Q1 EBITDA is mostly margin-related, or is there some revenue impact as well? José Boisjoli: Some of it is revenue-related as well. We expect revenue to be probably in line with what we had last year. Obviously, deliveries impacting by – impacted by the supply chain mix as well. But obviously, we’ve had a few price increases compared to last year, which should compensate, but flattish revenue.

Okay, that’s helpful. And maybe secondly, the implied EBITDA declined in Q1, it sounds like it’s mostly supply chain. Is there some commodity unpack there as well? And then secondly, I assume this is industry-wide, it’s not the ERP-specific in terms of what you’re seeing in this quarter? José Boisjoli: But what happened is beginning of the year, a few of our supplier, mainly in Asia was hit by the Omicron variant and some were operating at, let’s say, 50% of capacity. And that created like a whole into the supply of their components, which will reflect in the beginning to Q1. And this is why we give you some guidelines on how the Q1 will be affected.

Okay. But it’s up to the commodities, right? Are you taking any commodity inflation? José Boisjoli: In the, as I said in my question I had earlier, it’s about a 200 basis points impact coming from commodities and efficiencies this year.

Got it. Great. Thanks, guys.

Our next question comes from George Tome from Scotiabank. Please go ahead. Your line is open.

Good morning, guys. Congrats on a strong quarter and outlook. Seb, can you maybe quantify the dollar value that we’ve incurred in terms of costs for supply chain in fiscal 2022? Sébastien Martel: Well, obviously, the math is pretty easy to do, I’ll just pull out my numbers. If you look at the overall margin impact coming from cost efficiencies, or I’d call it at 300 basis points impact coming from inflation and inefficiencies.

Okay. Go ahead. Sébastien Martel: And obviously, most of them happen, I would say, probably in the last eight months of the year. Earlier in the year, it was more tempered in terms of inflation.

Okay, got it. And if we were to look beyond fiscal 2023 with the restocking, can you maybe quantify some of the margin pressures or headwinds you can face from future I guess, unfavorable mix and sales programs kind of coming back? Sébastien Martel: Obviously, we’ve introduced a lot of new products with a richer mix, so I’m not expecting mix to significantly impact us negatively. I’m expecting programs to increase. Obviously, we’ve benefited from a low promotional environment. And my expectation is that next year, we’ll probably have 100 basis point negative impact and that’s going to continue on in the years to come after.

Okay, thanks. And maybe for José, is that $500 million in revenue goalposts that you guys put out for Switch, and when you maybe care to put a venture out there in terms of when – how many years you think we’ll need to attain that number? José Boisjoli: But like I said, when we introduced Switch, we’re targeting to be North of $500 million within three years, and we’re tracking to be there.

Okay, awesome. Thanks a lot, guys. José Boisjoli: Thank you.

Our next question comes from Benoit Poirier from Desjardins Capital Markets. Please go ahead. Your line is open.

HI, good morning, everyone, and congrats for the good quarter. Just coming back on the electric to will market, could you talk about where do you see the revenue opportunity three to five years down the road? How sizeable it could be? Any thoughts about the potential market share and the average selling price overall? José Boisjoli: Yeah. Obviously, Benoit, we are two-year – the production was started in mid – the delivery will start mid-2024, then we are two-year in advance and we don’t won’t, for competitive reason, give too much color on all this. What I can say is, again, phase one off product and phase one of market strategy is North America and European market 600,000 units a year. And you can expect that in time. We couldn’t introduce that family in other region, but we don’t know yet. We need to better do the analysis. And the other thing is there could be other family of product to come. But for this first family of product in North America and Europe, introducing it in mid-2024, we would be disappointed if we will not be not affected billion-dollar in sales by 2030.

Okay, okay, that’s great color. And would you be willing to disclose where those units will get manufacture, José? José Boisjoli: Yeah, Querétaro.

Okay. And now if we look at PWC, obviously, there are some peers – some of your peers that’s troubled in 2021. You were able to gain some market share and one of your biggest peer announced that production costs of 30% in production for 2022. So could you talk a little bit about how views the differentiate from your peers and whether you’ll be able to grab further market share gain for PWC in the upcoming season? José Boisjoli: Like I said, Benoit a few minutes ago, the retail – the demand is so strong and there is so many units presale, that the market share depends more on our ability to supply the product, then our strategy have been to run our factory at maximum capacity. And then if we have backorder, either we retrofit them or the dealer retrofit it. That’s a different strategy than some of our competitors have done who they prefer reducing their production. But our goal is to run Querétaro with maximum capacity and to deliver as many units as we can and physically in season 2022 and season 2023 – fiscal year 2023 because that’s a great opportunity. On top of it, I would say that our product is extremely popular. Watercraft is benefiting of a lot of popularity. Right now, the FISH PRO is doing extremely well. And we will introduce in fall other new products, then we are right now in the I would say a very exciting period for watercraft and we’ll try to benefit as much as we can from it.

Okay, that’s great. And last question with respect to capital deployment, obviously, if we take into account your SIB, NCIB and upcoming free cash flow generation for fiscal year 2023, you’re going to end the year with still, what I would say, a very strong balance sheet. So any thoughts about the capital allocation and whether the two time leverage is still level you would target the longer-term? Sébastien Martel: As we said, we’re comfortable operating within a range of 1.5 to 2 times. And as you’ve mentioned, yes, we have obviously a strong balance sheet and good financial flexibility continue returning capital to shareholders. As you saw this morning with the SIB is a good indication of this. Obviously, we have confidence in the business, we have confidence in the growth as well that we’re able to deliver. And we believe that announcing SIB today is a good step in that direction.

Perfect. That’s great color. Thanks for the time. José Boisjoli: Thank you. Sébastien Martel: Thank you.

Our next question comes from Derek Dley from Canaccord Genuity. Please go ahead. Your line is open.

Hi, and I’ll echo congratulations on a great quarter and outlook. Just as it relates to the R&D spend, historically, it’s been in the sort of 4%, 4.5% range as a percentage of revenue. Should we expect something similar next year? Or will that be going up with the electric motorcycle project? Sébastien Martel: We should expect something very similar next year when you look at the overall decline in EBITDA margin, and that will come from gross margin. But from an overall operating expense, as a percentage of revenue, should be very similar to what we have in fiscal year 2022.

Okay, that’s helpful. And then just in terms of – and I know this is a tough one, but in terms of the – you guys are calling for supply chain issues to relent in the back half of the year, the back three quarters of the year. I mean, what is kind of giving you confidence that that’s going to be the case? Are you seeing some incremental improvements on the hedges today? José Boisjoli: I would say, right now, the main difficulty is semiconductor. The rest there is always some ups and downs, but it’s more manageable. Then right now is semiconductor that remain more difficult. Our supplier – our main key supplier believe that it will get better in the back half of calendar year 2023. And the other one that is a bit difficult is the shortage of container and transit time that sometime is not unplanned. But this is why because our supplier of semiconductor believe it will get better. We believe it will get better in the fall of 2023.

Okay, great. Thank you very much. José Boisjoli: Thank you.

Our next question comes from Cameron Doerksen from National Bank Financial. Please go ahead. Your line is open.

Yeah, thanks. Good morning. I guess just to follow-up on the supply chain question. Is there any, I guess, incremental risks that you see to the supply chain just from this war in between the Ukraine and Russia? I mean, is there any European suppliers that are cause for concern? Or is there any incremental risks around semiconductors that you’re, I guess concerned about? José Boisjoli: Yeah, first, we have no supplier either in Russia and Ukraine, then that’s at least positive. And obviously, a lot of people talk about neon, we know that Ukraine was a big producer of neon for semiconductor company and electronic company. But it seems right now to the – it seems to have found ways to manage that. Then so far, no big supplier or supply issue caused by Russia and Ukraine.

Okay, perfect. And just my second question, just going back to the, I guess, the EV motorcycle, I mean, you sort of touched on some of these points. But obviously, there’s, quite a few other manufacturers and startups trying to build electric motorcycles. So I just wonder if you can maybe detail a little bit more, what is going to differentiate BRP in that market, which right now looks to be a pretty crowded market? José Boisjoli: And obviously, at Can-Am, we won’t disclose too much this morning. We are two year before shipment. But I mean, it’s – you know our track record with product like SPARK, product like the Ryker, product like Sea-Doo Switch. And, again, the new Can-Am electric motorcycle will leverage the existing power – electric power pack we’re developing for the other product lines. And for us, you’re benefiting of a modular electric power pack that will build in-house. And we found ways we believe to come out with some interesting innovation into the motorcycle industry, leveraging, again, the brand, manufacturing footprint, the dealer network done for us, it’s an additional product line that is continuing to build our product portfolio that makes a ton of sense. Then we believe, and this is, I mean, our track record proven, we believe we will become a legitimate OEM into the motorcycle industry.

Okay. And just to follow-up, I mean, I guess obviously, your original plan was to roll out electric vehicle versions of basically all your products over the next several years. This is obviously the first announcement here. But is it still your expectation that you’ll keep to that timeline for electric product introductions across the product portfolio? José Boisjoli: Yeah, our product line will be – will offer some electric model by the end of 2026.

Okay, great. Thanks very much. José Boisjoli: Thank you.

Our next question comes from Fred Wightman from Wolfe Research. Please go ahead. Your line is open.

Hey, guys, I just wanted to follow-up on this semi finished inventory commentary. I think last quarter, you gave us sort of a bridge from the reported dealer inventory number to what that would look like with the semi finished units. Is there any chance that you could do that again this quarter? Sébastien Martel: Yeah, if obviously, we had very little inventory in the dealership that was unfinished. Obviously, what occurred is that we were able to ship a lot of components in the back half of Q4. Just to give you some color, if we had not shipped these components in the dealership, the inventory over a year would have been down in the 20% range, instead of up 21%. So obviously, it had a big, big play in Q4 in terms of inventory availability. And as I said, it obviously helped retail in February as we had a record month from a retail point of view, this past February.

Perfect, guys. Thank you.

We have no further questions. I would like to turn the call back over to Mr. Philippe Deschênes for closing remarks. Philippe Deschênes: Super. Thank you, and thanks, everyone, for joining us this morning and for your interest in DRP. We’ll look forward to speaking with you again for our first quarter conference call on June 3, and we hope to have you with us at our upcoming Investor Day later in June. Thanks again, everyone, and have a good day.

Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.