Good morning, ladies and gentlemen, and welcome to the Howmet Aerospace Third Quarter 2020 Results. My name is Shea, and I will be your operator for today. As a reminder, today's conference is being recorded for replay purposes. I would now like to turn the conference over to your host for today, Paul Luther, Vice President of Investor Relations. Please proceed.

Thank you, Fiya. Good morning and welcome to the Howmet Aerospace third quarter 2020 results conference call. I'm joined by John Plant, Executive Chairman and Co-Chief Executive Officer; Tolga Oal, Co-Chief Executive Officer; and Ken Giacobbe, Executive Vice President and Chief Financial Officer. After comments by John, Tolga and Ken, we will have a question-and-answer session. I would like to remind you that today's discussion will contain forward-looking statements relating to future events and expectations. You can find factors that could cause the company's actual results to differ materially from these projections listed in today's presentation and earnings press release and in our most recent SEC filings. In addition, we've included some non-GAAP financial measures in our discussion. Reconciliations to the most directly comparable GAAP financial measures can be found in today's press release and in the appendix in today's presentation. With that, I'd like to turn the call over to John.

Thanks, PT, and good morning, everyone, and welcome to this morning's call. I plan to give an overview of Howmet's third quarter performance. Tolga will speak to segment information, and then Ken will provide further financial detail. Lastly, I will return to talk to the outlook for the fourth quarter and 2020 financial year. Please move to Slide #4. The third quarter performance was good and in line with expectations, including strong cash generation. Revenue in the quarter was $1.1 billion, down 37% year-over-year, and was impacted by commercial aerospace being down 56% driven by customer inventory corrections. We continue to expect that this is the low point for Howmet revenues while anticipating there could be some lingering inventory corrections that could carry over into the fourth quarter and possibly the first half of 2021. Commercial transportation was down year-over-year, but we had healthy sequential growth to 42%, which flavored the impacts the forged wheels and commercial transportation fastening segment. Moreover, we had growth in defense aerospace and in the industrial gas turbine business year-over-year. The mix of our portfolio has changed with approximately 40% of Q3 revenue being tied to commercial aerospace. Operating income excluding Special items was $100 million and this includes the buyout of an unfavorable long-term contract, which costs $8 million. This hopefully should be the last of the cleanup items over the last year. Segment decremental margins including the contract termination were 37% year-over-year. I had indicated on the Q2 call that the third quarter was likely to be more decremented than the second quarter and reflects that we chose not to take out costs for one quarter and risk not having the people assets in place meet what we expect to be an uptick in future demand. For example, early in the third quarter,…

Thank you, John. Please move to Slide 6. We summarized on Slide 6 the status of our segments. Aerospace segments continue with revenue adjustments that follow slightly different trends. Let me start with the Engine Products. All those strong defense aerospace and industrial gas turbine growth continued in third quarter, commercial aerospace had expected customer inventory corrections and seasonal shutdowns. We continue to expect that third quarter will be the lowest revenue quarter of 2020 and we are ahead of our permanent cost reduction plans. Additionally, we are flexing variable labor and indirect costs with revenue. Regarding our long-term agreements, 2020 negotiations are now complete and we are actively working on 2021 contracts. Our philosophy on price has not changed. The Engine Product segment's biggest challenge continues to be managing the stranded inventory, which had a modest reduction quarter-over-quarter. Moving to Fastening Systems, the Fastening Systems segment follows the lagging, reducing revenue trends mainly due to the timing of commercial aerospace distribution business. The decline in commercial aerospace is partially offsets by growth in fasteners industrial business. Regarding permanent cost reduction, that's the largest number of European locations within our business, which impacts the timing of cost reduction actions, but follows directionally the revenue reduction threat. We are bridging this timing with heavy furloughs and effective, variable cost flexing. Maintaining our critical talent and skill sets is our priority during this period. The Engineered Structures segment has long lead time orders requiring close discussions with our customers to level of their demands for an efficient operating model for the next six to nine months. Permanent cost reduction actions are ahead of plan. Long-term agreement pricing negotiations are complete for 2020, including weeding out unprofitable products. In the Forged Wheels segment, third quarter 2020 revenue started recovering from second quarter 2020. As John mentioned, third quarter sequential revenue was up 42% as top U.S. shipping ports are near or above record levels of volume, which drives tracking demand. We expect continued growth in fourth quarter and have called employees back from furloughs and restarted operations. We have compressed permanent costs and having effective influx in production to meet customer demand. Lastly, we renewed one of our largest customer’s long-term agreement while increasing share with our innovative, lightweight, 39-pound wheel. I will now hand it over to Ken to give more details on the financials.

Thank you, Tolga. Now let's move to Slide 7. So before moving into the revenue and segment profitability, I wanted to note that the third quarter revenue and profit was in line with expectations and better than the implied outlook that we provided on the second quarter earnings call. The improved performance will be reflected in the updated outlook for the remainder of the year. Now to the third quarter. Total revenue was down 37% year-over-year driven by commercial aerospace, which now represents approximately 40% of total revenue in the quarter. Moving to the right-hand side of the slide, commercial aerospace was down 56% year-over-year. Consistent with our previous outlook, we expect the third quarter to be the lowest revenue quarter of the year as customers adjust inventory levels. Regarding the remaining 60% of the portfolio, I would point out that our second largest market, defense aerospace, continues to show year-over-year growth and was up 15% in the quarter, driven by strong demand for the Joint Strike Fighter on both new engine builds and engine spares. Our next largest market commercial transportation, which impacts both the forged wheels and the fastening system segment, was down 31% year-over-year. However, as Tolga has mentioned, we are seeing favorable trends for increased demand and this market improved 42% sequentially. Lastly, the industrial and other markets, which is comprised of industrial gas turbines, oil and gas, and general, industrial was down 4%. I would point out that IGT, which makes up approximately 40% of this market continues to be strong and was up 23%. Now let's move to Slide 8. On this slide, we are providing historical information for the combined segments with an estimated operational view of corporate. Compared to the prior year, third quarter revenue declined approximately $660 million with a corresponding…

Thanks, Ken. Now let me discuss the outlook for the remainder of 2020. We are improving the outlook and narrowing the ranges, the improvement strengthened the sales, increases EBITDA, increases EBITDA margins and less the earnings per share compared to the prior outlook. Revenues in the fourth quarter are expected to be $1.23 billion plus or minus $30 million and price increases are expected to continue. EBITDA are in the fourth quarter is expected to be approximately $255 million plus or minus $15 million. We are once again increasing our annual permanent cost at target to $185 million from $150 million. These are savings realized in the year. Our fourth quarter EBITDA margin is now increased to 20% to 21% from the prior midpoint of 20%. I think this may be the most significant item of our call this morning beyond the good cash generation. Annual earnings per share improves to a range of $0.68 to $0.76. Cash generation in the quarters from separation Q2 to Q4 is strong and unchanged at $450 million plus or minus $50 million despite the third quarter incremental reduction in AR securitization of $45 million. Year-end cash is expected to increase once again to approximately $1.5 billion. The event cash balance includes $95 million of annual reduction in AR securitization and $51 million of common stock repurchases at the average price of $17.36. Approximately $300 million of share purchase authority remains under prior announced Board authorization. Fourth quarter net debt of approximately $3.6 billion, which is an improvement post-separation, which was started out at $3.8 billion. As we move into 2021, you plan to use cash on hand to repay the outstanding 2021 bond maturities. During these uncertain times, we focused on the areas, which we control, including price, variable cost flexing, structural cost reductions, CapEx reductions, and free cash flow. While being prudent with our cash to opportunistically, we pay down debt and we purchased shares. Moreover, a diverse portfolio less than 50% of revenue tied to commercial aerospace is delivering strong results while we wait for commercial aerospace to recover. Let’s move to Slide 17. To summarize, our third quarter was delivered in line or better than the implied outlook. Cost and price leverage has been deployed. We have healthy and improving liquidity with positive cash flows in this COVID environment. The fourth quarter outlook improved regarding revenues, margins and profitability with earnings per share guidance raised. Now let me turn it over to take your questions.

Thank you. We will now begin the question-and-answer session. [Operator Instructions] The first question will come from Seth Seifman with JPMorgan. Please go ahead.

Thanks very much, and good morning.

Good morning, Seth.

John, I’ll have to make my one question about this news we saw recently about Pratt & Whitney planning to start building airfoils in North Carolina. And basically, how you view that, what it might reflect about customer behavior and what implications you may have for Howmet and for your own strategy.

Okay. First of all, we’ve discussed this with Pratt, but when you reflect on the situation in the industry, we work with companies already that have their own casting capabilities. So for example, GE, Roll-Royce, Safran, all have casting foundries. And so that in itself is nothing new to us. And when we look at Pratt & Whitney, in fact, they had their own casting capability until they exited in 2016. So we have a pattern and a history of working with our customers in this environment. So it’s – I would say it’s nothing new for us. We do feel confident in our position as a innovation and technology leader, especially in the hot section of the engine. And indeed, we produce some very specialized plates, which quite extraordinary capabilities for the JSF, which is a fighter jet engine. And if I comment a little bit further, so that you can understand some of the – I’ll say depths in our capabilities. We do go to the extent of building our own furnaces. We have proprietary – core preparation, waxing, and casting processes and measuring and controlling the temperature gradient starting off with an average of 300 degrees Fahrenheit higher than the casting temperatures or maximum casting temperatures of our competitors. So well, one of the things we do is by keeping all of that production equipment in-house and really not – really speaking about how and why we do it in any technical detail, enables us to keep, I think the technology edge, and in particular, the scale that we had with it and the know-how capability. And I think as you know, we’ve been in this business now in the 50 or 60 years. So I think we have all three levels of casting capabilities and all of the sub-processes, and to replicate that – which Howmet has. We probably take in the region of towards $10 billion of capital plus or minus. So I always absolutely expect everything that our customers do. And probably more importantly, we have a competitive environment already with other competitors. Currently, we are the market leader by probably 1.5 times, but I think it comes down to those very unique capabilities that we have and the experience of working very collaboratively with our customers to do the most extraordinary applications, where they already have in-house capabilities. And so this would mark Pratt & Whitney returning to being a having in-house capability alongside GE Aviation, Rolls-Royce and Safran. So hopefully, that covers it up for you.

Okay, very good. Thanks very much.

Thank you.

The next question will come from Robert Spingarn with Crédit Suisse. Please go ahead.

Good morning. John, two things. First, a clarification on what you just said, and then a question. Just specifically on Pratt, how protected is that position with contracts and LTAs, if you think about your overall revenue there. And then just given your visibility on commercial aero, which I don’t know if it’s any better than anybody else’s, but you seem to have the confidence. Want to guide up today to buy back stock. Can you talk about trends from here on that 56% decline in Q3 in commercial aero revenue? How you’re thinking about that percentage number as we go forward the next few quarters. Thank you.

Okay. I don’t think it was much to add to the Pratt & Whitney conversation. We do have a long-term agreement covering menus in place. So I think that’s the good in all of this. So unless anything else, I’ll move on to how we see the balance of year and into 2021 for us. We did call out the third quarter in a previous earnings call in early August that we felt that it would be the low. We felt that it would be the most severely impacted by inventory reduction to that customers. And as you know, we operate both the first tier place directly with Boeing and Airbus. And also a second tier place, in terms of some of the engine parts that we supply to the engine manufacturers. And so you get an increased inventory effect as you go through another tier in the supply chain. And that’s what we felt back in August and try to indicate before also calling out back then that we felt as though the majority of the severity of the inventory reduction. We would try to accommodate and work with our customers to accommodate you sooner rather than later, rather than have it drag out in a long tail. And we are clear that – we’re not completely through this, it’s going to continue and we’ll have an impact into the fourth quarter and in some areas into the early part of 2021. And that’s taking to accounts, the plan increase in Airbus narrow-body sales. We are not taking that into account at this point. But we do feel that revenues will improve in the fourth quarter. And that gives us the platform that we always sought to really get 2021 framed as best as we could. And maybe talk…

Do you see commercial aero trending up sequentially quarter by quarter from here, at least from the down 56% in Q3?

I’m not going to go beyond the fourth quarter at this point. I don’t feel as though, I know enough to really give clarity publicly about the quarter sequential production through next year. I think we need a little bit more knowledge. I’m hoping that the production of Boeing begins to increase next year for the narrow-body, not expecting anything from wide-body. And we await confirmation as the Airbus situation in terms of solidification of that in production schedules, which Airbus did announce their increased up almost 20% in narrow-body production in the halfway through next year. So I feel good that we see an improvement in the fourth quarter mapping out 2021 and what happened in each quarter is just a bridge too far for us at this point.

The next question will come from David Strauss with Barclays. Please go ahead.

Thanks. Good morning, everyone.

Hi, David.

John or Ken, I wanted to go back on your comments on working capital, I think prior you’ve been calling for working capital, but to be a tailwind this year, but it sounded like, now you’re talking about maybe it being a headwind for the full year, but then some inventory release in 2021. So if you could clarify that, and then, I guess, any sort of early indication or early look in terms of how you’re thinking pension next year. Thanks.

So maybe, if I start at a top level to say, why we see working capital recorded differently is to be used this year. And then I'm going to hand across to Tolga to talk a little bit about dropped inventory, what we have this year and then into next year. So let's do in that sequence. And let's say I cover the two points, which is, why used this year and then the pension side. And pass-across to Tolga. So, the use essentially is that AR securitization paid out. It goes through – its fixed working capital and it goes through that line on the cash flow statements. If you exempted the AR of 95 million, then there would be a working capital inflow for the year. So it's a function of the accounting around the securitization. One thing David that I've always felt a little bit uncomfortable about this, we had this off-balance sheet financing which was a carryover from Alcoa. The 2016 separation, a carryover from the Arconic separation, carried that securitization into – which is always been the main curve and wanted to gradually work that down, which is effectively just working down of our net debt of the company and feel that's a good thing to do. And it also improves the interest carrying cost of the company, so that's the principle reason around it. And if you were to do that, you'll see AR improving AP under good control and our inventory is being reduced. So the normal definition of working capital would be in good shape, and it's just a function of this AR securitization paid out, which goes to the working capital line. I will comment on pension and pass across to Tolga. So pension, at the moment, we do see that – the thought basically is that 2021 will be lower. And then 2020 in terms of pension contributions, we'll give you a more exact number on that at the time we announce our fourth quarter results, say early Feb. Tolga, if I could ask you to comment on dropped inventory, both through our Engine and Fastener segments and also the move into 2021.

Sure, John. It's important to highlight that we are reducing our inventory and we are supporting the cash generation. However we feel looking at the scale of the reduction set this stranded inventory in-hand, did they saw in-hand translation, yes naturally under pressure. So the two segments that had the highest pressure on the stranded inventory are our Engines and Structures businesses. So I mentioned that we are working very closely with our customers to level load the demand and the production levels, especially on the Structure side, especially on the long peak time orders. And therefore we project that this stranded inventory will continue into 2021, and we should be balancing curtails on hand within 2021. We are managing also the stranded inventory on the Engine side. And we have some more adjustments if we are working with our customers, but we expect that impact to be much smaller. And we got minimal impacts for the segments like Fasteners on the stranded inventory side that we are actively managing today.

Great, thank you very much.

Thank you.

The next question is from Gautam Khanna with Cowen, please go ahead.

John, if you wouldn't mind opining on kind of the pricing opportunity in 2021, 2022 and 2023. At the Investor Day, you gave kind of a longer term outlook, and I wonder how that's changed maybe relative to 2020’s actual price realization, if you can give us any flavor for that. That'd be helpful. Thank you.

Okay. Thank you. Well, first of all, let me comment on 2020, it's not complete. And you saw the third quarter comparative to the second quarter, the solidification and completion of those – there was a grievance for 2020, so all done. Regarding 2021, the several LTA is involved as always as you know they are different customers, different years, different products, as they all separate. The dialogue as you know covers price, share, share of unique technology programs and, also terms and conditions. I'm pleased with progress so far on 2021. There are a couple of major ones within 2021. And basically I'm going to say to you that everything that we are seeing is going to be consistent with what I've said before, that 2021 will be on the same volume basis a bigger year for us than 2020. This of course plays well into – as you go into 2022 and 2023 when hopefully commercial aerospace volumes get to show increases and hopefully significant increases. And so those increases – price increase do get applied to the higher volume sales. If I look at the current status for 2021, we're currently about 60% complete. So we're probably a little bit earlier than normal in engaging this item through. I expect that will continue to fill-in over the next few months. But the important thing is 60% of what 2021 is now not complete upside. And in 2023 – 2022, I don't believe that will be as bigger year as 2021, but there's not much color I'm able to give you yet on 2022 and 2023 apart from we still see ourselves in the positive side.

Thank you very much.

Thank you.

The next question will come from Carter Copeland with Melius Research. Please go ahead.

Hey, good morning gentlemen.

Hey Carter.

John, I wondered if you could maybe just clarify the share comment you made earlier, the 1.5 times does that imply a 60-40 split and if that's not right if you could correct that for me. And then I just wondered if you might kind of give us a sense of hot section versus cold section, you went to great length talking about the capabilities on the hot section air foils. And I just wondered if you could around that share disclosure, give us a sense where in the engine that might be higher or lower than the aggregate. Thank you.

Okay. When we exited 2019, our share was – the airfoil market was around about 49% plus or minus 0.5% or 1%. Next largest competitor was, it went around 32%, 33%, so it was about 50% greater than next largest competitor. So at an RMS basis, that’s on market share basis, we’re 1.5 times. If you break it down, then our market shares would be higher at the first few blades in the turbine. So we'd be at the hot or super hot end of the – at the turbine where our market shares would be excited. So the purpose of this call in excess of 60% in that area and more. And depending upon the application could be as much as a 100%. So, that gives you some idea of the market share – relative market share and topology within the engine.

Great. Thank you for the color.

Thank you.

The next question is from George Shapiro with Shapiro Research. Please go ahead.

I was wondering in your raise for the year, was that mostly due to how much wheels has recovered and aerospace was comparable to what you saw last quarter, or if you could provide some color on that? And then also the incremental margin on a sequential basis in wheels was like 49%. I mean, what's kind of a sustainable incremental margin for that business. Thanks very much.

Okay. First of all, clearly, wheels is a benefit to us as we move Q3 into Q4. That is not the sole reason for the improvement in the EBITDA margin guide. We're also seeing a benefit in saying that commercial aerospace business. So it's really in all aspects of the business. There's nothing which is currently lagging in our plans or any of the implementation as the cost flexing, no structural cost takeout. So it's across the board. But clearly within that, when I look at and the strengths of the wheels businesses is coming through. And I'm hopeful that our EBITDA as we go – we start up in 2021. We'll be getting close, or if not as good as the 2019 margin rate, even though we know we will not see some revenues in 2021 as good as 2019. In the last earnings call, I did state that we saw revenues in that business, getting back to the 2019 levels in 2022. But I think we are looking forward to margins getting there back to the year earlier than that, given the structural cost takeouts and cost flexing. And basically improved in cost base that we have.

Okay. Thank you very much.

Thank you.

The next question will come from Josh Sullivan with Benchmark Company. Please go ahead.

Hey, good morning, John and Ken. Just the question on fasteners, you mentioned some weeding out of unprofitable products. How much volume did that include? Have you outright exited at any aerospace products in particularly just some color there would be great?

First of all, let me backup and give Tolga bit of thinking time on the Fastener side where – but the exit of the – what we talked about the unprofitable contract, we haven't called out the segment of particular interest. It wasn't fasteners. We're in, I think largely good shape. There's always things you can do to try to look at certain things which are below the performance. But basically this was the agent of something which was loss making and needed to be dealt with to, I didn't want to carry that problem going forward. But maybe as a broader comment on fasteners probably if you'd like to see – where we see basically apart from one or two areas we are fairly good shape.

Yes. I just would like to clarify that. My comment about beating out was on the structure side if your contract is we are in renegotiating our pricing. And in general, it has been very positive for structures and certain part numbers they were historically not good. So it'd be continuously shows the option not to renew those parts. It's in the big picture and that's significant for us and beneficial for the business. And specifically talking about the fasteners, our contract negotiations are going very positive and the renewables have been very good. And we do not really have any specific action to specifically looking to big numbers of contracts that are given us margin issues. But again, overall it has been a very positive contract renewable for all of our segments, including structures, fasteners, and engines.

Is it covered that Josh?

Yes. Thank you.

Thank you.

[Operator Instructions] And the next question will come from Paretosh Misra with Berenberg. Please go ahead.

Thank you. And thanks, John and Ken for all the color. Actually I had a question for Tolga, if I may. Tolga, you've been with the firm now a bit hunger. So just curious, any initial impression as to what you have seen and what are some of the opportunities for the firm that you see ahead? Anything that surprised you? Obviously, very unusual time to start a new role, but would appreciate any thoughts that you could share with us?

Sure. I think, I'd like to start with the comment that continuation of leadership at Howmet Aerospace is key for a success. So, I here being immersed and involved deeply in our businesses since my announcement at the Investor Day, just with the separation of scores and then the COVID-19 crisis. I have been leading to cost containment, cash preservation activities, driving key supplier and customer negotiations. And most importantly, I'd like to emphasize that I have been strengthening the fundamentals of the operating playbook that John is introduced to Howmet last year. And John and I have been working on this operating playbook for a long time. And we have a plan with John that we're rolling out step by step, and we are definitely seeing the results and the benefits of having our disciplines, training playbook in place that we continue rolling busier and real continual, so as our regular process going into next year as well. Does that answer the question?

Yes. I appreciate that. Thanks.

Thank you, Paretosh.

Thanks Paretosh.

The next question is a follow-up question from George Shapiro with Shapiro Research. Please go ahead.

Yes, John. I just wanted to pursue a little bit more of my questions. So is aerospace better in the fourth quarter than you thought it was going to be in the third quarter? And if so, in what way? Thanks.

I suspect the benefit, I mean slightly better volumes than we'd anticipated. So we – so the revenue increase. So that it's not just the wheel. So it's a little bit better there. But that could also be done to conservative assumptions that we tend to do to roll with. I think the cost takeout that you’ve see both on the structural side about cost takeout, do you see that improve that'd be better. And then, probably even more important to create a bigger number than the structural cost takeout is our variable cost takeout, which we've never called out the absolute dollars, because I think reached the relevance about is the percentage and are you getting close to what we call the perfect flex. And we see ourselves flexing our cost base a little bit better, well, across all the areas, but in particular where the [indiscernible] commercial aerospace business. That flexing of the cost base has been at higher order than with – again plan for – again, partly because we tend to plan conservatively and then see if we can exceed it. So that's where it's at. I'm not saying that there is any increase in aircraft build or anything like that, that's not the case, but it could be in the fourth quarter more of the assumptions that we made. But at this point, we feel confident about the revenue lift that we've talked about and the cost takeout, and therefore, the improvement in the EBITDA margins that we've called out, because for us that's all about the platform we enter 2021 with.

Thanks very much for the follow-up.

Thank you.

The next question is a follow-up from Gautam Khanna with Cowen. Please go ahead.

Thanks for the additional question. John, I was wondering if you could maybe frame for us or level set us on why the company is able to get pricing in what looks like a particularly stressed time for your customers. And is it a – is it sort of a rolling one-time mark to market on some of the contracts that Howmet inherited from the legacy companies maybe that were off commercial terms relative to your competitors, and therefore you just kind of reset the market maybe FX, energy, pass-throughs on metal, things like that weren't – you were taking too much risk on the legacy contracts relative to your competitors? Or is it in fact the customers wanting – recognizing the value you guys provide and just you're seeing price inflation in the end market? Because again, I'm just trying to square with what you guys said before your time as CEO. Arconic used to talk about price deflation as a reality in aerospace and used to have floating bar charts that showed it on your slides, and now we're talking about the opposite trend over an extended period in a downturn. So just if you could help square why that is still true? Thank you.

Yes. I mean I'm not able to comment on predecessor management stance toward it. I originate from an industry which is called the, you know what I mean, which is probably more used to price deflation and the attempted commoditization of the input products for vehicle assembly. But even in there, when I always looked at it very closely, getting immersed in the technical capabilities and performance differentiation of the products, so, even there, for example, I don't believe the steering wheel on a vehicle is all steering wheels are equal. They're very different in terms of capabilities, cosmetics and quality delivered. So it really is trying to really understand the performance differentiation of the product. I'd like to believe that Howmet provides that not only in product quality and technology, but also in delivery performance and consistency with our customers. And I've always tried to work collaboratively with our customers to maximize the value for both of us. And so inherently, I've not thought of the aerospace parts marketing quite the same way as the vehicle parts market. I don't believe inherently that it is in a consistent price deflation or anything like that. I think there is product capabilities that most of the parts that are produced in aerospace are technological wonders in their own rights and achieve a level of safety and performance for the traveling public, which is quite extraordinary. And so, my hats off to everybody in the industry, but the second tier level and first tier level are obviously the plane manufacture themselves. But within that, I do think – I don't believe this is just any correction of the past. If there is a correction, it's just – we have cleaned up one or two contracts, which were, let's say, inappropriate item that's…

Thank you.

Thanks, Gautam.

[Operator Instructions]

Thank you.