Operator: Good morning, ladies and gentlemen, and welcome to the Loblaw Companies Limited Second Quarter 2026 Results Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. If you would like to ask a question at that time, please press star, then the number 1 on your telephone keypad to raise your hand and enter the queue. If at any time, you need assistance during this call, please press star, then the number 0. Your telephone keypad. Please note this call is being recorded on Thursday, 07/30/2026. I would now like to turn the conference over to Roy MacDonald, Vice President Investor Relations. Please go ahead.

Roy MacDonald: Thanks very much, Colby, and I also officially welcome you to the Loblaw Companies Limited second quarter 2026 Results Conference Call. And joining me this morning is Per Bank, our President and Chief Executive Officer, and Richard Dufresne, our chief financial officer. Before we begin, I want to remind you that today's discussion will include forward looking statements, which may include, but are not limited to, statements with respect to Loblaw's anticipated future results. These statements are based on assumptions and reflect management's current expectations. As such, they are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from our expectations. These risks and uncertainties are discussed in the company's materials that are filed with the Canadian securities regulators. And any forward looking statements speak only as of the date they are made. The company disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Other than what is required by law. Also, certain non GAAP financial measures may be discussed or referred to today, so please refer to our annual report or other materials filed with the Canadian securities regulators for a reconciliation of each of these measures to the most directly comparable GAAP financial measure. And with that, I will turn the call over to Richard.

Richard Dufresne: Thank you, Roy, and good morning, everyone. Before I begin with my remarks, I just want to acknowledge that today is the last day for Michael Van Aelst before he retires. So I want to thank Michael for his long standing support. And so while he is not officially on this call, I hear that he is listening. So enjoy your retirement, Michael. Okay. So we delivered another strong quarter of consistent operational and financial performance. The quarter was characterized by solid revenue growth stable gross margin, a flat SG&A rate, and strong adjusted EPS growth. Delivered this performance while we continue to invest in new stores, pharmacies and optimizing our distribution network. All of our businesses have momentum. Feel good about the rest of the year, and our 2027 plans are beginning to take shape. In the second quarter, revenue, including PC Financial, was $15 billion up 4.1%. Total company adjusted EBITDA increased 5.1% to $1.9 billion and adjusted EBITDA margin improved by 10-basis-points. Adjusted diluted net earnings per common share grew 11.9% to $0.66. On a GAAP basis, revenue was $15 billion up 4.1%, and diluted net earnings per common share $0.64, up 8.5%. In Food Retail, absolute sales grew 3.3% supported by new store growth, while same store sales grew 1.6% which includes a 20-basis-point drag from the right hand side. Our hard discount banners continue to perform well in the quarter with comparable sales close to 4%. Maxi and No Frills remain well positioned for customers focused on value, supported by strong execution in both existing and new stores. As research openings mature and enter the comparable store base, they are delivering strong double digit same store sales growth. This performance reflects the strength of our expansion strategy. Food retail traffic and basket were both positive on a same store basis, and we remain pleased with our market share. We continue to gain share in hard discount, and we are outperforming our peers in convention. Our internal CPI like food inflation metric remains lower than Canada's grocery CPI. Our actual quarterly in store average article price has now been consistently lower than CPI inflation for more than 4 years. This reflects the relevance of our promotions, our effectiveness at pushing back on unjust supplier cost increases, and trade downs by consumers. During the quarter, we opened 11 food stores, including 7 Maxi and No Frill stores, 1 T&T store in Canada, and 1 T&T store in the US. We also opened 3 new Shoppers Drug Mart locations. These new stores contributed to a net positive impact on our gross retail square footage of approximately 1.52.6% in pharmacy. Our new stores continue to perform very well, and we are currently on track to open about 75 stores this year. Our conventional banners also performed well, delivering positive same store sales growth. Fortinos and TNT remain strong, helping our conventional banners continue to outperform their peers. In drug retail, absolute sales increased 6.1%, while same store sales grew 4.6%. Pharmacy and health care services grew same-store sales by 7.5%. Driven by continued strength in specialty and chronic prescriptions. On a same store basis, prescription volumes increased 3.4% and average prescription value increased 5.5%. Specialty prescription growth continues to lead our pharmacy performance. Within this category, we are beginning to see the impact of GLP 1 drugs going generic. it is still very early, but the initial indications are encouraging. Lower generic pricing is being offset by higher volumes and we expect higher revenue higher gross profit dollars, and higher gross margin rate. We will provide a more detailed update at our Investor Day in September. LifeMark delivered double digit sales growth as it continued to experience strong growth in the number of patient visits to its clinics. Front store same-store sales grew 1.3%. Prestige cosmetics, OTC, and baby were strong, while the timing of the Easter shift was a headwind to sales. The underlying strength and profitability of the front store business remains solid. Online sales increased 19.3% in the quarter, driven by PC Express delivery, PCX Pass, our third party marketplace partnerships, the expansion of pick and delivery in marketplace locations. Retail gross margins were stable, up 10 basis points. Retail SG&A as a percentage of sales was flat at 20%. This reflects operating leverage from higher sales offset by incremental costs related to opening new stores the ramp up of our automated distribution facility and the year-over-year impact of certain real estate. The ramp up of our East Gwillimbury distribution center continues to progress and we are making progress on the construction of our second new distribution center in South Caledon. These remain important investments in the long term capability and efficiency of our supply chain. Turning to financial services, subsequent to the end of the quarter, we completed the sale of PC Financial to EQ Bank. As of closing, Loblaw owns approximately 19.9% of EQBs issued and outstanding common shares. We expect to increase our ownership to approximately 25% over time. In connection with the transaction, Loblaw received $625 million in cash, representing the excess--the release of excess capital--cash consideration from EQB and the collection of certain commodity tax receivables. Starting in the third quarter, we will no longer report PC Financial results and will begin to recognize our proportionate shares of EQB's net income within our consolidated financial results as financial services remain important to Loblaw's strategy. As we begin this new partnership, we are excited to continue expanding the benefits of PC Optimum while participating in the future growth of EQB. In the quarter, we repurchased $552 million worth of common shares under our NCIB program for a year to date total of $1.2 billion Our return on equity was 27.2% our return on capital was 12.5%. Looking ahead, we continue to expect our Retail business to grow earnings faster than sales and adjusted net earnings per common share growth in the high single digits. Because the PC Financial transaction closed partway through the quarter and our reporting calendars are different, we will only recognize 1 month of EQB's earnings in the third quarter. Despite this timing related headwind, we remain confident in our ability to deliver net earnings per common share growth in the high single digits. We expect to continue to deliver consistent top line sales growth in the third quarter and remain confident in the long term strength of our retail business and our ability to leverage on our outlook for the year. Consistent growth in free cash flow remains 1 of the defining strengths of our business. It provides us with the flexibility to simultaneously invest to deliver our long term growth strategy while maintaining a strong balance sheet and returning capital to shareholders. We believe this balanced approach to capital allocation is a key competitive advantage and an important driver of long term shareholder value. Given the strength of our balance sheet and growing free cash flow, we now expect to repurchase $2.1 billion of our shares this year, an increase of $200 million to our initial plan. I will now turn the call over to Per.

Per Bank: Thanks, Richard, and good morning, everyone. We are very pleased to report a strong second quarter for 2026. What stands out to me is the quality of execution across the entire business. We are staying focused on the fundamentals: strong stores, disciplined growth, and delivering our customers relevant value and offers in the way they want to shop. The consumer environment remains consistent with what we have seen over the past several quarters. Customers are looking for value. Using promotions, engaging with PC Optimum offers, and making choices across the basket to manage their budgets. That puts a premium on execution. We recognize that customers can choose where they make their purchases and spend their hard earned dollars. And they are responding to retailers that understand and anticipate their needs Consumers are rewarding retailers that offer great value, meaningful service, compelling offers, and an unbeatable selection. We believe we are delivering on all these parameters. And customers continue to reward us for meeting their needs. Every day, our merchant sourcing teams and suppliers work together to better to balance delivering affordable products for Canadians while growing our domestic supply chain network. We continue to onboard new Canadian suppliers, invest in local and help smaller businesses scale alongside us. I am incredibly proud that more than 70% of the food we buy is sourced from or prepared in Canada. And we are always looking for opportunities to increase that number where it benefits our customers. Supporting Canadian suppliers and delivering value to customers are not competing priorities. They do go hand in hand. it is about making thoughtful choices that strengthen our economy while continuing to deliver the quality selection, and value our customers need and expect. We continue to see suppliers come with cost increases, and our approach remains disciplined. We carefully assess every proposal and only accept increases that are supported by the underlying cost. As a result, we have identified successfully pushed back more than ever on unjustified cost increases with guests. Saving hundreds of millions of dollars for our customers. In food retail, our discount banners remain very well positioned. Maxi and No Frills continue to help customers stretch their budgets. And we continue to see strong customer response as we add capacity in underserved markets. We opened 4 no frills and 3 Maxi stores in last quarter. As an example, we are proud to bring the first-ever hard discount store to the town of Lloydminster in Alberta. We also opened our 2nd Maxi in New Brunswick. Where we converted a No Frills in Bathurst and saw sales more than double under the new Maxi banner, a bit better than we expected. And this morning, we opened a new No Frills store in Dutton, Ontario. Which will be the first hard discount store in that community. Providing customers with more choice and the option to save significantly on groceries. As Richard mentioned, our conventional banners are also performing well. After lapping a very strong performance in quarter 2 last year. T&T remains 1 of the most exciting growth opportunities that we have in the company. And customer response continues to be strong, both in Canada and in the US. In June, we opened our first TNT location in California. And it has been a huge success. The San Jose store generated the highest first week sales of any store opening in the history of Loblaw. Hundreds of customers were lined up for hours on the opening day. And the mayor was there to help cut the ceremonial ribbon. We plan to open 2 more California stores in 2026. We are excited to bring the T&T experience to new communities. Drug retail, Shoppers Drug Mart and Pharmaprix continue to grow. it is great to see the role our pharmacy teams are playing in improving healthcare delivery in Canada. Customers want convenient access to care closer to home And our pharmacists and health care professionals are increasingly part of that solution. In the quarter, we brought that convenience to 3 new communities including a new smaller format pharmacy and care clinic in a new residential development in the West End of Toronto. In front store, we continue to focus on making the offer more relevant. For 1 example is the food refresh we are testing in select Shoppers stores. More SKUs at cheaper prices. Early results are encouraging, and we plan to expand the test this year. it is practical retail work, listen to customers, test the offer, learn quickly. And scale if it works. Our pharmacy health care services business continues to perform very well. Our chronic prescription volume continues to grow in the mid single digits. While specialty and health care services delivered strong double digit growth. As the specialty segment begins to evolve with the introduction of generics in the GLP-1 space, we have an opportunity to play a meaningful role in helping Canadians better understand their treatment options and in partnership with healthcare providers help them benefit from safe and appropriate use of these treatments. E commerce growth remains very strong at 19.3%, Our Click and Collect sales remain stable while 40%, led by our PC Express delivery and third party options. We are seeing improving efficiencies and profitability as our growth accelerate in both third party pick and delivery. At Shoppers, we recently rolled out our Buy Online Pick Up in Stores to 500 stores. Offering customers additional convenience in the front door shop while driving an incremental in-store purchase. Looking ahead, we are confident that consumer preference for discount is a long term shift. Our momentum on investing in this area and the differentiation of Maxi and No Frills banners position us very well for continued growth. We believe the diversity of our banner portfolio combined with our scale, loyalty program, control brand, and execution, puts us in a very strong position. As an example, customers have really embraced our summer insiders program, And this is the best and most successful program so far it is also bringing us a lot of new customers. I am proud to add that 1 of our top selling insider products this season is our PC Cherry Tomatoes. And these delicious on-the-vine cherry tomatoes are greenhouse grown right here in Canada. And on tomatoes, that actually reminds me that our president of hard discount Melanie Singh Whenever she's asked about what she does, she answers I am just here to sell tomatoes. And trust me, we are selling tons of tomatoes in hard discount. On a more serious note, our performance this quarter reinforces our confidence in the year. We are serving our customers well, investing with discipline and delivering consistent performance across the business. I want to thank our colleagues across stores, distribution centers, pharmacies, clinics, and store support offices. Their hard work and dedication are what allows us to deliver for our customers every day. With that, we will open the floor for questions. Thanks a lot.

Roy MacDonald: Thank you, Per. Colby, if you do not mind introducing the Q and A process again, please.

Operator: Of course. If you would like to ask a question, please press star then the number 1 on your telephone keypad to raise your hand and enter the queue. If you would like to withdraw your question at any time, please press star 1 again. We will pause just for a moment to compile the roster. Your first question comes from the line of Mark Carden with UBS. Your line is open.

Mark Carden: Good morning. Thanks so much for taking the questions. So to start, can you guys walk through any shifts you are seeing with respect to the health of the consumer? You called out some continued challenges on this front. Any shifts in spend by income cohort or with respect to trade between banners or from branded to private label? Thanks.

Per Bank: Thank you for the questions. And our customers, it is more or less in line with what we have seen so far this year. There are a few examples that customers, they are they are looking more and more for value, more for discount. that is also why in the way that we work, we apply more value both to our discount stores, but also to our conventional banners. And to reach a point before, having close to a 4% discount comp growth I think that is a proof of that. But we are still seeing the customer. They are going for the promotions. And we have seen an increase in our private labels. And also, we are seeing some shift in patterns in how to shop. And a new insight that we just revealed a few weeks ago was that customers are buying more and more into the frozen vegetable area. So it is more than it is more than 500-basis-points growth in the frozen vegetables in our in our hard discount banner. So those customers shop there, they are trying to mitigate their inflation. And they are doing that, also proof that our internal inflation is much lower than the external thing. So I would say customers, they stay conscious, they stay focused on value. it is more or less the same as last quarter with a little bit of more of a move to discount. But that is also because we had a very strong comp last year of 3.5 also on our on our conventional banner.

Mark Carden: Gotcha. that is great color. Thanks. And then at this stage, how are you thinking about fuel costs for the balance of the year? How much of an impact could higher diesel costs have in your P&L just given unsettled situation in The Middle East?

Richard Dufresne: Well, it is very hard. Like, prices went up, and then they started to go down again, and now they are going back up. So it is it is very hard to predict. But, like, when you look at inflation year to date, look, it is still pretty stable. So but as we said in previous quarter, if this lasts longer than expected, like, you are going to see an impact. But right now, we are still seeing our inflation below 3%. Yeah.

Per Bank: And I would add to that, that we have only seen a few of our suppliers coming with cost increases because of fuel. But of course, as Richard said, if it is continuing, then we will expect a few more of those cost increases that of course, we will have to push back on. But we will expect that But we do not expect that inflation will increase compared to where it is now.

Mark Carden: Makes sense. Thanks so much. Good luck, guys.

Per Bank: Thanks.

Operator: Your next question comes from the line of Irene Nattel with RBC Capital Markets. Your line is open.

Irene Nattel: Thanks, and good morning. Just following up on the last question. So you said comps in hard discount were up 4%, which implies that conventional was pretty solidly sort of negative. You just called out the 3.5% comp last year on the promo. But how should we be thinking about conventional and, whether we are modestly positive or modestly negative, and how-- what are the key initiatives to drive value in that channel?

Richard Dufresne: Thank you. Irene, so, yeah, Per hinted, like, I think our conventional business continues to be quite strong. I think when you look at comparing it to the comp last year, like Per mentioned, that total comp was 3.5. Our comp and convention in Q2 of last year was actually higher than our comp and discount. Okay? And I will not go back as to why. Everybody knows why. So that is skewing a bit what is happening now. So the from a comp perspective, you will see and that effect that we saw in conventional started in Q2 of 25 and lasted for also Q3 and a bit in Q4. So you will see that affecting the reported comp, But, like, you look at our top line performance and you look at our market share performance, it sort of signals that our business continues to be quite healthy.

Per Bank: Yeah. And I would add to that we do continue to manage our business to deliver against our financial framework with the comp sales that we are achieving and rest assured that the comp sales will remain as a really key metric for us. And in the quarter, there were several moving parts I think, influence our performance. But on market share, as Richard said, that we gained market shares with our discount banners. We were better than our peers in our conventional business. And overall, we did gain share in the quarter. And then there was a few factors as mentioned in 1 of the scripts, that we had a negative impact from the Easter shift. We had some headwinds from lower tobacco and liquor sales. And then we are also right now seeing a headwind from tariffs impact from last year. Remember, we increased prices on American products directly imported because of tariffs. So they were increased by 25% last year. It disappeared again in October. So that is a short impact swing of about 40 bps right now. It has no profit impact and that will disappear again in October. So we actually feel really strong about our comp sales as well.

Irene Nattel: that is great. Thank you. And I just also want to clarify something that was said in the opening remarks about Shoppers and the impact of the GLP-1. You said that you expect total revenue to be positive, notwithstanding the pricing headwind. Which implies that you expect volume to more than offset. Is that correct?

Richard Dufresne: Yes. Actually, like, we have started to plan for 2027, and it is still early days. Okay? So we are using just preliminary data, but, like, our data is telling us that next year, GLP-1 sales despite the price decrease, should grow double digit, okay, in dollars. And that you are going to see gross profit dollars and gross profit rate grow way more than that. Oh, yes. Okay. Thank you.

Operator: Your next question comes from the line of Tamy Chen with BMO Capital Markets. Your line is open.

Tamy Chen: Thanks. Good morning. So, Per and Richard, it sounds like with the food comp this quarter that it was more a function of the year over year lapse. It does not sound like the consumer changed sequentially as gas prices at the pumps increased. Is that fair to say? And I am also wondering if there is anything to call out in competitive dynamics. I think we have seen on our end, Walmart price a little bit more aggressive. Aggressively lately.

Per Bank: I think the market stays very rational, and I think I think you are right. Not a lot has changed to the last quarter, and there are some different impacts in this quarter. Okay. Got it.

Tamy Chen: And my other question is, where are you in terms of your phase of higher square footage growth for next year? Should we expect that percentage growth to decelerate versus the last 2 years? And how would you characterize right now the industry's pace of square footage growth? Thanks.

Richard Dufresne: Well, we are still running on food at about 1.5. You know? Like and pharmacy is growing a little bit faster. Like, we said 75 stores this year. Like, we think our number next year is going to be probably very close to that also. So I think the pace will be stable. We do not see it accelerating nor decelerating. And it is in, remember, it is in our base now. So as we have said, several times that in the beginning, when we are ramping up building those stores, it will be a headwind. But over time, of course, it will be a tailwind because we do not add additional depreciations compared to the base. Got it. Thank you.

Operator: Your next question comes from the line of Vishal Shreedhar with National Bank. Your line is open.

Vishal Shreedhar: Hi, thanks for taking my questions. Just a quick clarification. I think I know what you mean, but I just wanted to clarify. You said that the GLP sales dollars next year is intended to go double digit. And gross profit dollars way more than that. You are you are saying within double digits but greater than that level of Yeah.

Richard Dufresne: Like, we affect gross mar gross margin rate and margin dollar will grow more than top line growth. that is what we mean. Yes.

Vishal Shreedhar: Okay. With respect to the cannibalization within your comp associated with the square footage growth, Are you able to calculate that, or do you have an estimate of that internally?

Richard Dufresne: Yeah. We do we do have erosion estimates in our in our plan, and so far, we are doing better than our internal estimate.

Vishal Shreedhar: Okay. So are you able to share what the impact is on the comp associated with the square footage growth that you are putting in?

Richard Dufresne: We do not measure it like that, but we do not have that number. Like, we measure it as a percentage of sales. And so and that is the that is the planning assumption we have, and that is what we track. And, and we are doing better than our And it is yeah. And it is not a concern of ours at all. Not ours and not competitors. Yeah. I see.

Vishal Shreedhar: And with respect to the when the new cohort of stores enters into your comp, do you have an estimate of how much that will benefit the comp? You said the new stores are comping double digit. So presumably, it will be a it will be a nice relief as those start to enter into the base.

Richard Dufresne: Yeah. I guess. But think about it. We are gonna finish the year probably have had opened about 200 stores over the last 3 years. Think about half of those are pharmacies and half of those are our food stores. So and the bulk of those are discount stores. So I think you can go play with your model to figure out the impact that has on comp, but it is definitely the more we the more we start to get an impact. And what we have said, and we are seeing it is, like, when these stores get into comp, we are getting double digit double digit comp performance. Okay.

Vishal Shreedhar: And with respect to the ecommerce growth that you are seeing, how is that on your the impact on your operations and on the store experience? Have you hit those thresholds such that the third-party aggregators are placing pressure within the stores.

Richard Dufresne: No.

Per Bank: No. Our operation is absolutely fine. It does not impact our operations. So no.

Vishal Shreedhar: Okay. Alright. Thank you.

Operator: Your next question comes from the line of Brian Morrison with TD Cowen. Your line is open.

Analyst: Good morning. Just high level thinking about your gross margin outlook. We have got many tailwinds next year, generic GLP-1 growth, lower new store and DC ramps and even solid profit streams. I know it is early days, but I wonder if you plan to accept this margin expansion from these tailwinds or if you plan to reinvest in the product or pricing to further drive through market share?

Richard Dufresne: Like, we always want to keep our price competitive, and we always reinvest money in our stores, but you should see a positive tailwind on gross margin, largely on the back of GLP-1 drugs going generic. So that is what you should start to see. And that is what we are planning for. We have invested back in prices in the past, and we will continue to do that in the future to stay competitive. We feel good about gross margin for the next we feel good about gross margin for the next while. Okay. Frank you for that. And then can you sorry if I missed this, but do you have an updated timeline to get your 25% EQB ownership in and I know it is small, but can you just quantify the impact from the timing mismatch of the calendar? Only picking up 1 month of EQB. I assume it is a penny or 2, but it will be offset by the end NCIB. We have a rough estimate that, like, by November of next year, we should get there. Obviously, that is us buying using the rules. But if some blocks were to become available and that could help us go faster. But, like, right now, I think it is sort of November 2027 is the is the date.

Analyst: Thank you.

Operator: Your next question comes from the line of John Zamparo with Scotiabank. Your line is open.

John Zamparo: Thank you. Good morning. I wanted to come back to the pharmacy side of the business, in particular, the Rx comp. And it was a meaningful acceleration you saw in the quarter. I wonder if there is any color you can add here. I think we are all familiar with the long term structural trends of aging population, but it was still meaningful shift upward in Q2. And is it as simple as GLP ones, or is there more to it than that you could share?

Per Bank: Yeah. I think it is mainly driven by GLP-1s, and in Q1, it was not generic yet. So that was helped by that. But we are also seeing very, very strong sales in chronic disease management. So the med reviews and yeah, everything else that our that our pharmacists are doing. But driven by GLP 1, definitely.

John Zamparo: Okay. Just to clarify, think you would said last quarter GLP ones were growing 40% year to date. it is fair to say that accelerated in Q2 then? it is around the same. Yeah. Okay.

Per Bank: Okay. And then secondly, Shoppers, I wonder if you can comment on your shrink reduction initiatives. You talked about this as an opportunity in the past. It sounds like that is being adequately captured this year. And I wonder if you can quantify or describe the progress so far and what remains in 26. I think we still want to reduce shrink even though we are at a very good level right now. We back to pre-COVID levels in Shoppers. So we are pleased with where we are. But of course, we always strive to reduce it. We like the slope at which the shrink curve on shoppers is falling.

Richard Dufresne: So we want to maintain that.

John Zamparo: Okay. I will pass it on. Thank you very much.

Operator: Your next question comes from Christopher Lee with Desjardins. Your line is open.

Chris Li: Good morning, everyone. Sorry if you already touched on this in the beginning. I was wondering in terms of the gross margin for this quarter, was food gross margin largely stable again?

Richard Dufresne: Yep. Perfect. Okay. that is helpful.

Chris Li: And then, Per, you mentioned the refreshes at Shoppers that you are doing is quite encouraging so far. I was wondering, can you share with us a bit more about sort of what you are seeing so far that gives you that encouragement and what is the plan for the rest of the year?

Per Bank: So we have completed 17 stores now, and we have 11 more on the way. And we are still reviewing and adjusting them, and they are giving us some very, very good numbers. And we will I think we will share more when we have the investor Day coming later in the year to get a little bit more into some of the details in Shoppers. But so far, we are very pleased. And for us, it is about a continuous test. And since we will soon be more than 30, is a good indication of that we are we are getting what we want.

Chris Li: Okay. Great. And, Richard, just maybe 1 more for you. Do you still expect the cost related to the East Gwillimbury DC ramp up and the new store openings to start to ease in the second half of the year?

Richard Dufresne: Yep. Yes. Okay. Perfect. Thanks, guys.

Operator: Since there are no further questions in queue, I would like to turn the call back over to Roy for closing remarks.

Roy MacDonald: Thanks for your time, everybody, this morning. We are around if you have any questions, call or drop me an email. In terms of Q3, circle November 19. When we will be releasing our results. And as both Per and Richard alluded, we are looking forward to hosting you all up at our East Gwillimbury DC in September for an Investor Day. Have a great day, everybody. Thanks again.

Operator: Ladies and gentlemen, this concludes today's conference call. You may now disconnect.