T-Mobile US, Inc. (NASDAQ:TMUS) J. P. Morgan Annual Global Technology, Media and Communications Conference May 23, 2022 12:30 p. m. Eastern Time
Participating companies
Mike Sievert – President and Chief Executive Officer
Conference Call Participants
Philip Cusick – JPMorgan
Philip Cusick
Salut. Je I’m Phil Cusick. Je covers infrastructure and compensation as well as media here at JPMorgan. I think Mike Sievert is my first time coming here, president and CEO of T-Mobile. Mike, thank you for joining us.
mike sievert
Thank you Phil. I thank you. Everyone knows you along the way. You don’t have to show yourself for those things. You know, right?
Philip Cusick
No. C it’s a habit. It’s a habit. So listen, I really appreciate that you came. You made an announcement this morning about the company. So, let’s start with the company. It’s probably a little different from what we go on a regular basis. And just say where T-Mobile went: I’m the majority of major corporations and it’s growing to really work with some kind of Fortune 50, Fortune 100 and deep relationships there.
mike sievert
Well, that’s the herbal result of our 5G leadership. As you know, when we created the merged company two years ago, the big purpose was to lead the 5G industry and have the largest and most capable 5G network in the country and identify a really broad network leadership based on our incredible strengths and spectrum, a leadership that would last.
And one of the business outcomes of all this leadership is corporate. We, as a client company in T-Mobile independent, and on the wireless side, in independent Sprint, it is also largely true that we were very little penetrated. Combined market share, lately 10% to 11% and in the accounts of giant companies, companies and governments.
And so for us it is a massive vector of expansion for us because we think of a corporate that, in the 50 most sensitive towns in this country with consumers, we are number one. We are neither number two nor number three. the number one supplier in the largest cities in this country. And yet, with the company, we are a 10 share, while we have the largest 5G network and a really wide 5G advantage in terms of speed and capacity. become a great domain of interest to us.
And what we reported in Q1 is that it’s going exactly as we planned. We are talking about going from a percentage of 10% to a percentage of 20% until 2025. And it’s a developing market. I think after COVID we see CL[ph] lines potentially continuing to grow. And that’s the follow-up. Our percentage gains in the market have been sufficient for us to reach this target at our existing rates over the past 4 quarters. Therefore, it is wonderful to see.
But this is just the beginning. And one of the things we know we want to do as a non-incumbent in corporate is to get much more strategic relationships with the front office, CIOs and CEOs. more about simply bidding on secure tenders. And as a small non-holder, what they would do would be submit an offer, we would find a smart grid and a wonderful price and they would throw us something to partially refine their AT deal.
Now, when we win deals, we take the whole kit and caboodle. And for that, you have to have a date. And 5G ANS, Advanced Network Services, of which we announced some of our advancements this morning, is a big step towards a strategic appointment with the office.
Now, complex 5G network services, such as cellular edge computing, such as compromised networks, are a vital business in themselves with their own feedback that we will upload to the business plan we presented with you at our Analyst Day last year.
But on the other hand, it’s kind of two because while we build a business in complex 5G network services, we also have the opportunity now with the most strategic relationships to get an inordinate percentage of smartphones and tablets deployed by government and corporations. That’s why we talked about it this morning.
We’re in active deployments and testing with a very large minority of Fortune 50, a double-digit number of Fortune 50, very important, not early clinical projects, but ongoing implementations with major airlines, with hospitality, with a giant entertainment company in Florida, with: we announced the sale of GP, which is a good torture control to show what can make the most complex and capable 5G network in the country. Etc. So we are satisfied.
And we haven’t tended in this area to do those little guys of fake press releases where every one of those companies says, we look at things together, like maybe, why don’t they give us a press release?? And that’s why this morning we started talking about it in a more formal way.
Q&A session
Q-Philip Cusick
This was announced with Nokia, Ericsson and Dell this morning. So, however, he talked about two things here. The first is that he talked about getting the market for smartphones and tablets, that is, 10 stocks go to 20 stocks. I’m still interested in T-Mobile’s progress in advancing the stack with businesses, whether it’s helping them with their personal 5G networks or helping them manage their nationwide knowledge network. And what is the progression of overtime?
mike sievert
Well, CIOs around the world are now interested in that. Because in a world where everything has a service in recent years, networks have stubbornly become stubborn. Companies own and operate networks, and it’s a complexity they don’t need. And what proprietary networks?we can supply with Wi-Fi is less than what we can now supply with complex 5G services.
And so everyone is interested in this topic. And that’s why you see all those deployments with us and our competition among the Fortune 100.
And they’re interested for a reason. They need more secure networks. They need committed capacity. They need a compromised spectrum, which means they perceive performance. They need service point commitments and they need everything to be a service. And we can supply that exclusively. Today, our competition also uses it. But remember, we’re still the only ones who have an independent 5G core. And more complex 5G installations require a 5G core, not an LTE core. It’s a big track.
We’ve had it for almost two years, which means we’re not only the only ones to have it, but it’s maturing rapidly in our ecosystem. once, as a voice over 5G radio, VoNR, etc. , where we are leaders in the industry.
And CIOs know it. And so they’re looking for us like they’ve never done in our past of 10 actions. And they ask us to sit down and communicate about it, and together we plan a forward-looking future. And what’s happening, as I said, is that there’s a prospect of two because not only can we satisfy your desires in this area, but again an appointment that also allows us to advance our core business in smartphones and tablets at the same time.
Philip Cusick
So speaking of which, this kind of $60 million corporate responsibility, I mean, I’ve worked in other corporations where, at one point, the company was guilty of my phone. And those days are over. But is it a developing ecosystem?Or will it take action in what is otherwise a solid or declining market?
mike sievert
I mean, with a hybrid workforce, corporations are doing more to enable their connections outside the office. So we see corporate work as a developing area because there is: corporations are striving to find tactics to show workers that they are embracing a long-term hybrid and that they will set it up for success. So, subsidizing part of your home connection is a trend, and subsidizing wireless is a trend we’re seeing. It’s increased, but we see the possibility of it being physically powerful and the continued expansion in the CL area that we might not have been so positive about before COVID.
Philip Cusick
Do you think this is part of the effects on a faster-growing postpaid ecosystem than many of us expected?
mike sievert
Well, it’s a dynamic. The other dynamic we see in the industry is a continuous economic shift from prepaid to postpaid. Therefore, much of the postpaid expansion comes from prepaid. And I could say, well, wait a second. Well, why don’t I see that on the prepaid side?Because now you see a more varied set of connections in prepaid.
So, while moving some relationships to postpaid, prepaid begins to look more like the old postpaid, which means more tablets, more watches, more connected devices to compensate for the arrival of some smartphones. So, it’s a dynamic.
And then the other thing is that it’s purely mathematical. You can see that in our particular competition, aggregate levels are driving industry expansion. If you look at Verizon, for example, that it hasn’t had an expansion of account appointments in the year since and above, yet many net additions to report, those are just calculations. This means that, by definition, they come from adding rows to the database. And that’s a dynamic you see across the industry.
We were more specific there a few years ago when we first partnered with Sprint. We saw insufficient penetration of lines consistent with the Sprint family and went further. But as you can see from our first quarter results, 348,000 net relationships with new accounts, the highest first quarter in our history. Our focus, as we began to tell you a year and a half ago, is on accounts and change, and we are winning the game to change.
Philip Cusick
Is there anything that happens when a visitor or a business or a small business moves from the Sprint look to the T-Mobile look that increases that account number?Or is everything clean?
mike sievert
No. C it’s just an undeniable transfer. What happens is that the abandonment rate decreases and satisfaction increases. And so, as we discussed at the end of the first quarter, we now have 37% of old Sprint accounts that not only use the network, which is practically everyone, but have changed their pricing plans to a T-Mobile type pricing plan and are on a T-Mobile or T-Mobile type phone plan. And when you have that recipe, the network, the pricing plans, the phone plan, it means taking credit for our loyalty programs, T-Mobile Tuesdays and more. 37% complied. And of this cohort, their unsubscribe profile is precisely like Magenta, which for the past 2 years on average has been the weakest logo in the industry.
Therefore, we are very positive about the outlook as we continue to move customers. Remember that this component statistic means that they have been updated. Therefore, this component takes a little time. That’s why we’re at 37% on this metric, as opposed to almost all of the knowledge traffic that’s now on T-Mobile’s side.
Philip Cusick
Àdroite. Je need to delve into this dynamic in a second. But two years, almost, just over two years after the start of the Sprint deal, and it turns out you are, I don’t need to overdo it, but it turns out that it’s coming to the end of the hard part, which is easy to say for my part, I’m sure. But the network integration that’s going to be done, the integration of customers, a lot of things have been done. . As you take a look at this period of a few years, have things gone better than expected, a little cleaner than expected?Were you surprised by something that came out of nowhere?
mike sievert
Well, a year ago, almost exactly a year ago, we celebrated our Analyst Day about a year after the merger was finished and the new venture began. And during that time, we had noticed enough progress to be able to say that this competition The $75 billion merger that creates an NPV could have ended almost a year earlier. And it was: many other people didn’t believe us, but we just stood up and continued the challenge based on what we saw.
Moving us forward one more year, this is still the case. So this incredibly ambitious plan that we’ve put in place is going exactly as we predicted. As we sit here today, I would say we are in the middle of the hardest part, yet thank you for the credit. But we’re complex enough to see the trend lines. notably the largest piece. So this summer, we’ll be very active on that front.
But we’ve already established a speed of execution that we perceive our capabilities, and we don’t think there will be any big surprises to come. Thousands and thousands of Sprint sites have already been taken offline. And everything is going very well. We think we’ll be coming to the end of this year with really extensive work and a few more months for some billing migrations and business-side migrations, et cetera. So we’re thrilled with what’s happening.
The team had two years to plan this. And we didn’t need two years to plan it, but we had two years to plan it. And the team is fantastic. We came up with a wonderful plan and we are executing it with a head. And honestly, it’s hard for me to be objective about it, yet it’s one of the things that I think sets us apart as a leadership team.
Time and time ago in this industry, we are the ones who check for you sure things that will happen one, two and 3 years in advance, and then we go, precisely as we told you. We are not offering a new model business, a new plan and an absolutely new long term every time you meet us. And that’s one of the things that makes us different.
Philip Cusick
He recently resumed his subscriber advice. And we’ve had other projections from some of their peers about whether or not the industry is slowing down given where we are in the economy. Is there anything in terms of bad debts or traffic volumes that we are aware of?
mike sievert
Ouais. Eh well, as you ask me what I see and the casting in the long run, it reminds me that lawyers tell me to mention that I am making forward-looking statements in this filing and that the actual effects may differ and that we have an in-depth discussion of our threat points in our public filings. You’re welcome, lawyers.
Philip Cusick
Well said.
mike sievert
Look, we think it’s going like we said last quarter. The market is a bit more dynamic than it was a year ago. We see globally, and anyone can buy portability knowledge for the industry. comparison with last year. That means a global substitution in the industry, which is the key detail we are looking for is substitution. We are percentage takers. We want to replace. And also, if that doesn’t happen, we do things to stimulate and energize it. And that has been the strategy of the Un-carrier.
But what he sees us doing, when we love global flows, also sees us delivering a plan every quarter that has a balance between expansion and profitability. He doesn’t see us, knee reflexes, switching between being obsessed with earnings and. . . then get stuck on net additions, and then the next quarter doing things like crazy things in the city. We are executing our plan. And last quarter, we had the most productive first quarter in our Un-carrier history with 348,000 net additions, with 1. 3 million postpaid networks, more than AT
And so, and we may have had more. He realized that we exceeded EBITDA. Es we may have spent some of that speed on even cruder ads. In addition, the umpteenth gross addition in this industry is more expensive to obtain. So at some point, you look at it and you say, I like that growth point. It was good.
And then I know my competition has been there, and they look smart. They are smart with what’s going on in their business. And so, it’s a healthy industry. And we know that, as a large-scale supplier to the industry, we are the custodians of this healthy industry. Therefore, we are in a vigorous festival and we are executing our game plan. And right now, in the total industry, it’s very competitive, we love what we see.
Philip Cusick
I mean, it’s very competitive. John Stankey pointed out this morning that I don’t think there was an era where it wasn’t competitive, where we all said, Wow, that’s pretty easy and how long can it last?But do you think there’s some kind of festival point with the arrival of cable and the arrival of DISH?Do you think it’s going to get worse here?
mike sievert
I don’t know. I think we see it now. The cable is doing very well. And yet, when you look at the sum of Cable and Verizon, the maximum of cable companies with Verizon, when you look at the sum of Cable and Verizon, that sum is constant. And it turns out that Verizon has been content to approve in part of its expansion its MVNO partners, which is very enriching for them and a smart deal for them, and they seem comfortable with everything that is happening. But that sector in general, when you mix them, is the same.
reserve army
But what sets us apart is that once you register with us, we have much lower values, there is nothing new there. The same superiority of value that we have had, a margin so comfortable that it has not been replaced over time. And I think right now it’s really vital for consumers, again, not just because inflation is the most important economic factor in consumers’ minds.
And as it continues, I think it gives us the opportunity to stand up and defend price leadership in the industry and remind other people of our pricing position that has made Un-carrier famous. I think now there’s a wonderful opportunity for that. But not by converting what we do, but simply by reminding other people of what we do. And that’s very, very important.
But we can also remind other people that carriers are going to be carriers. I mean, you’re in what AT is.
And so, for us, we introduced in 2015, a prominent Un-carrier movement that we call value lock-in. At that time, we called it the decontract. And that means that, in their service plan, it was given to us. And this is the most productive time for us to remind other people. Because remember, we don’t want increases in the value of this business plan. For the first time in the decade I’ve been here, I guided this last quarter toward ARPU growth. We are now moving towards arpu growth, modest growth, yet ARPU growth, for the first time in our history because other people are settling into our stack themselves. most of our options are now Magenta Max, the most productive expression of the most productive 5G network. And only about 15% of our base is penetrated through it.
And so, other people find their way to our most productive products because the network shows them that it’s worth spending. And that’s why we don’t want to scam other people with prizes. What we can do is remind other people that they are our competition.
Philip Cusick
It’s appealing that I discussed 2015 because that’s when I was taking so many AT shares.
mike sievert
The other thing that happened in this era is. . . Remember, Verizon after repeating over and over again that no one wants the unlimited, has bet everything on the unlimited.
Philip Cusick
I also had a CFO that he replaced at the time.
mike sievert
Good, good. That’s what you have to do. So it’s interesting. And, by the way, there have been years where we take one hundred percent of the stock, that is, all the net additions, more than all the net additions from the industry. This is not the case lately. And again, we may have taken more in the last quarter. You have noticed our speed in EBITDA. And we locate a balance. We went back and forth with our promotions. We are comfortable with the superiority of our price proposition.
And listen, what is another now of the maximum of this Un-carrier vacation that has worked so well for us is that, in addition to having that consistent maximum productive value, we also have the most productive 5G network environments. And we have a lot of things to do to convince people, I understand, however, we have maximum productivity. And so, and it’s just different from what we’ve had. And that gives us, I think, an opportunity that we didn’t have before to be able to look for genuine quality buyers. And that means it’s not about lowering their prices anymore.
Philip Cusick
He spoke earlier of the 1% increase in ARPU. And that’s different from what had been a kind of 8-year trend of ARPU falling by 1%, or so, during that period. And the company has been very focused on sharing. Do you think there is enough call for those who pass through Magenta to follow, more or less, arpu from here?
mike sievert
Well, most of our now is Magenta Max and yet we only have 15% penetration. This suggests that there is an opportunity. How many opportunities? We’ll have to see. I mean, we try to make Magenta MAX not only our most productive product, but also our highest-priced product, which means that when other people go through it, we need them to be delighted, so that everyone wins. And we see that.
So we like the dynamic of how everything plays out. Again, they self-select, which I love. And the satisfaction rates are high, the usage rates are high. We have the highest capacity wireless network ever built in this country. And that’s why we like the fact that those consumers buy and then use, which is a wonderful insulator, because it means they’re less likely to look elsewhere for service.
Philip Cusick
One thing I think about when I consider your unsubscribe and unsubscribe from Sprint consumers is that if I need to leave T-Mobile, I have to pay more, right?Unless you pass through some kind of provider of choice, cable or prepaid or something like that. If I need to move to T or Verizon, I have to pay more. So, like you, it’s attractive when you get those Sprint consumers on T-Mobile plans, we still keep in mind that they’re lower quality, with less credit. Do they have less credit, but keep spinning at the same pace?Or do they really resemble T-Mobile consumers on each and every level?
mike sievert
Well, again, the other people who have been through everyone look like T-Mobile customers. And while it’s true that over the years there’s been crude addition activity that I think is very opportunistic at Sprint, due to the unsubscribe profiles of those customers, many of them are already gone. They are – they have already produced. So, I don’t know precisely what we’re going to see when we’ve done everything, but I suspect what we’re going to see is very similar to what we’ve noticed on the T-Mobile side, which is an adventure from worst to first in the dropout rate.
And ultimately, what the Un-carrier does is attack the sensitive points. And the biggest challenge in the history of this industry is the false selection between the quality and price of the network. We solve that. And because of that, our Magenta logo over the past two years has the lowest abandonment rate in the industry. And it’s from a Magenta visitor base that other people may have made the same complaint about that you just made about Sprint visitors. I mean Magenta has been a pricing provider and yet we’ve reached the lowest abandonment rate on average over the last two years in postpaid. That’s great.
But look, unlike our competitors, we have winds of expansion that are simply different. And one of them that I didn’t talk much about, they heard me talk about small markets and rural areas. They heard me talk about high-speed internet, constant wireless connection. You’ve heard me talk about business and the wonderful benefits we see in it. But in the most sensitive of that, where we are already number one, which are the big markets, the 50 most sensitive markets, the hundred markets, we see, we are not only protecting our castle.
We protect our castle, but we see a wonderful opportunity to stand up to the tens of millions of other people in the biggest cities in this country like Boston, like New York, where we are the number one buyer of quality. Tens of millions of others people have never looked at us seriously because they worry that we are not the best. And now we are. And our responsibility is to give it to other people. Therefore, quality buyers in the hundred most sensitive markets, where on average we are number one or tied at number one, is a vital expansion engine. And then, of course, the Sprint abandonment rate is a tailwind in our company.
Think about the fact that we generated the maximum postpaid netpaintings in the industry in the first quarter and the account expansion ever recorded in our history during a first quarter while achieving an oversized Sprint abandonment rate that we know is temporary, and you get two – for the unsubscribe rate, No?Because not only do those consumers leave us at higher rates than the industry while we paint to complete the migration, but they are also a kind of fake expansion engine on the other side.
Philip Cusick
they in
mike sievert
Yes
Philip Cusick
I think it would be really interesting. They discussed major markets where consumers like me don’t take T-Mobile into consideration. And that’s not necessarily a New York problem. That is, when I leave New York, those second- and third-tier markets that you’re building now are spaces I spend a lot of time in. Therefore, I believe that protecting a percentage of almost 40% in the big markets is not easy. Do you expect to lose a portion of your center while protecting your overall with superior quality buyers?
mike sievert
No, we see an opportunity. Our consumers in the hundred most sensitive markets are very satisfied. They know they have the most productive price and that the network works for them, otherwise they wouldn’t have the lowest abandonment rate in the industry. And so, what we’re looking for is whether or not we can achieve merit by targeting quality buyers, other people who buy primarily online.
And there are many tactics to do so. Word of mouth is very important. The reputation of the logo is very important, but stubborn. But I also think that evidence of torture and references to third parties are important. especially this when they are closer to large-scale deployments.
And I think when other people see, oh my God, the biggest airline in the world or the biggest one, some of the biggest transportation and hospitality corporations that are widely distributed and go to each and every city and operate in this country, T-Portable. And T-Mobile after reviewing a hundred phones from all providers and deciding who will have the most productive connections. And that kind of thing matters.
Philip Cusick
So, thinking about convincing customers, you communicate that you have the most productive 5G network. When do you have the most productive global network? Because he’s very careful about saying we have the most productive 5G network, yet that’s the kind of policy and consistency that Verizon and AT have.
Mike Sievert
Yes. I give more to Verizon than to AT
But what Neville and Ulf did was based on designing a set of rules that we use called client-centric coverage. And what we’re looking for is our more sensible customers, where are they going, is it a moment of torture control? I was in Mount Rainier National Park this weekend, up on a mountain, 5,500 feet above sea level, hunting on the glacier. And now we have. and did a speed check at the National Park Lodge. Somewhere we had buckets two years later. And I got 276 megabits consistent with the moment right in the middle of this log cabin, on the highest parking lot on Mount Rainier. As, however, Mount Rainier receives only about 2 million visitors a year. Of course, it is very far. Nobody lives there. There is no POP, but it is important. And those who put that matter now are driven by capital for us. And when we enter, we don’t just enter. We entered with the full force of our up-consistent with the spectrum and scale, which means that when we enter, we are offering an ex-consistent differentiated experience.
So when you go to that beach or that trailhead or that airport or somewhere far from the rural area, and you see that we’re not just there, we’re much bigger than the others. I mean we are still the only ones with a 5G Strategy in small markets and rural areas. We will be successful in another 260 million people this year with Ultra Capacity 5G.
Verizon said they could get there in 2024. So when I made this joke, other people’s idea was a joke from two years ago that said we were two years ahead in the 5G race and in two years we’re going to be two years ahead. , agree through their own public disclosures.
Philip Cusick
So to my question, is there a point where you see this policy effort through Neville, mountaineers and ski chalets and remote beaches, where Verizon stands now in terms of politics in square miles?
mike sievert
Oui. Absolument. Et especially when it comes to putting what’s important to customers. And that’s, to me, that’s what we’re going to prioritize when we offer a customer-centric canopy. When you enter a market, there is possibly a stretch of country road that allows you to tour the village and even the suburbs as much as you want, but in a small market, if you don’t have that stretch of road that leads to the factory or the nearby village, you can Don’t win. You can’t unless you cover that. So, you want to know where those positions that are important to other people are located. And that’s what we’re focusing on.
Philip Cusick
As we approached the end of Sprint’s network integration, he indicated that his margin began to grow quite quickly. When you see AT
mike sievert
Well, we have other geographic spaces for sure. And that’s it, and we have other degrees of transparency. We are absolutely transparent. They have other activities, which is quite evident, so it is difficult to answer. But what I can tell you is that cash is king and we have a more capital-efficient business model. So, we hired our full spectrum: sorry, we hired all our fiber backhaul. They have capital-intensive fiber plans. And they say, well, it’s a wonderful comeback for us. And it’s very possible.
But the genuine measure will be the generation of money consistent with the dollar of the profit of the service. And we think we’re on a path where we’re going to have the most sensible money production consistent with the service profit dollar in the industry, which is normalizing for all those geographic differences. And that’s why last year, on Analyst Day, we focused so much on demonstrating that this style translates into cash flow.
And you saw it this quarter with significant monetary gains compared to the previous year, expanding our cash flow and then talking about a 45% CAGR in the era of making plans and a reaffirmation that we expect to see up to $65 billion in ’23-’24 and ’25 money flow that will be maximum maximum likely to result in very broad percentage buybacks. That’s our model. That’s what we’re focusing on.
Philip Cusick
Àdroite. Et that dollar-consistent money of income, I compare it to the consistent percentage of EBITDA minus capital intensity, and then that hole is your —
mike sievert
Ouais. Again, because it’s not just because we don’t build fiber to the towers. That’s because we have a higher spectrum portfolio. And when you take all that together, we have a more efficient capital business model. This year is kind of a record capital year with over $13 billion in capital, but it’s moving now to this business plan because we’ve gone through the maximum of integration, the $23 capital will be lower. And you get going to see that EBITDA will be higher and you get going to see the release of money start to take off. And it’s already taking off. So there’s a proven track record of the promises we’ve made.
Philip Cusick
You’ve already been asked to do so several times, but you’ve just won an upgrade to the S watch.
mike sievert
Well, it’s not an express trigger. And I’ll say the same thing I said before, which is that business style provides cash and we see an aspiration of $60 billion in buybacks in 23-24 and 25 with the skill. to start earlier, and that’s still the case today when we look at it. The board is looking for a lot of things as we planned in this. And there is no single trigger. But it’s great to see this potential update coming. We already have Fitch. S
If you look at our money balances right now, we don’t have $60 billion in the bank. Therefore, we hoped to be able to smooth the buyback progress with some debt. And right now, high-yield markets are different than they were a year ago. So, the IG of the relative trading circle is a big step, but it is not necessarily a predicate.
Philip Cusick
Did the rate increase replace any calculation for you to this kind of leverage target of $65 billion in allocated cash?
mike sievert
Because again, it’s just a smoothing feature. I mean, coins are in our plan. And at 23-24 and 25, as we said last year, we’ve noticed our way and see our way to $65 billion. in coins over the years. So the coins are there in the plan. And what we’ve done quarter after quarter is remove the interrogation marks that other people possibly would have had, as we said a year ago, because of our execution. Therefore, we are very satisfied with the position of things in this total picture.
Philip Cusick
It’s a position to quit. Mike, thank you very much.
mike sievert
Impressive. Thank you all. See you later.
Philip Cusick
Thank you all.