Foschini Group Limited · JSE:TFG
Foschini — The Foschini Group — FY2022 Earnings Presentation
74 slides from Foschini's earnings presentation, June 2022
Slide 1: TFG Results Presentation
TFG RESULTS PRESENTATION FOR THE YEAR ENDED 31 MARCH 2022
Slide 2: Agenda
AGENDA 01 Overview and Highlights 02 Financial Review 03 Segmental Performance 04 Strategy and Outlook
Slide 3: Overview and Highlights
01 OVERVIEW AND HIGHLIGHTS Anthony Thunstrom Group CEO
Slide 4: Back and better: highlights
Back and better: highlights Market share gains and increased profitability • Resilient operating model, management teams and employees saw us through: • continued periods of lock-down, • intensified load-shedding disruption across SA • civil unrest in KZN and • global supply chain disruptions • Mark
Slide 5: Back and better: highlights
Back and better: highlights Capital deployment and balance sheet resilience Purposeful deployment of capital: Sound capital management: • Organic: • Robust working capital management Major store build out programme (higher stock turns), flat credit book 274 new in SA, despite the growth in credit sa
Slide 6: Delivering on our strategy: in numbers
Delivering on our strategy: in numbers FY22 – resilience fuelling record performance Group highlights Africa highlights TURNOVER OMNI-TRANSFORMATION CUSTOMER FOCUS SOCIAL PERFORMANCE +31.6% E-COMM TURNOVER B-BBEE LEVEL AFRICA STORE VISITORS 6 3 GROSS PROFIT +18% +56% +40.3% LONDON ONLINE VISITORS HE
Slide 7: Driving growth
Driving growth We’re building out our businesses Driving Like-for-Like growth + Whilst investing in growth and capability platforms Turnover >R5bn NEW NEW STRATEGIC +21.3% BRANDS Turnover CAPABILITIES VERTICALS GROUP >R2,1bn AFRICA LONDON AUSTRALIA QR Manu Strong Brand Flat-Circle Homeware: JET +17.
Slide 8: We Put Customers First
We Put Customers First We live our values They’re more satisfied – And there’s More are following More are joining wherever we serve them less hassle TFG Woolworths MRP Increased CSAT +22% -20% Truworths Instore Clicks Superbalist Cottonon Dischem LOYALTY BASE CALL CENTRE CONTACTS Online Takealot MR
Slide 9: We create the most remarkable customer experiences
We create the most remarkable customer experiences Proud to have the finest brands, people and stores B R A N D S P E O P L E S T O R E S Winner: Top Empowerment Platinum Award: Awards for Y.E.S. Sports Store Runners up: Platinum Award: Employer of Choice Clothing store for Men Top 50 Most Top 50 Mo
Slide 10: Customers are putting us first
Customers are putting us first We outcompete Market share gain • Desirability through a portfolio of high brand equity businesses UK GROWTH V MARKET GBP 87m • Superior availability of merchandise from local manufacture despite global supply chain disruption Market share gain SA MENS- AND LADIESWEAR
Slide 11: LABS tackled critical performance areas and made step-change gains
LABS tackled critical performance areas and made step-change gains Transform to be a true omni-channel retailer REVENUE COST PER ORDER 18% ↑ 19%↓ R798m to R942m FY21 vs FY22 MAY 21 TO MAR 22 IMPROVEMENT IN ON-TIME AVG. ORDER LAST MILE DELIVERIES TURNAROUND TIME 10%↓ ↓ 50% • Rapidly built a top digit
Slide 12: We're in this business for good
We’re in this business for good Social performance and leverage Below inflation price +7,176 More jobs and workplace opportunities- R105m In social impact initiatives including enterprise and supplier development and increases across most many supporting GOVERNMENT’S support to COMMUNITIES and NGO’S
Slide 13: Financial Review
02 FINANCIAL REVIEW Bongiwe Ntuli Group CFO
Slide 14: Group | Operating context
Group | Operating context HEADWINDS 2021 FURTHER CHALLENGES 2022 • Significant COVID-19 restrictions • Continued COVID-19 restrictions • R1.5bn COVID-19 support (Govt, Landlords) • Africa: July civil unrest:198 stores looted, c.R750m turnover lost • R700m Jet bargain purchase gain • Africa: Load she
Slide 15: Record performance
Record performance Headline earnings of R3.3bn, up 19.8% on 2020 Profit after tax Turnover EBIT R2.9bn R30.3bn R43.4bn R4.8bn +256% +32.3% +31.6% +769% Tax R1.1bn Gross Profit R21.0bn Trading Expenses Finance costs +40.3% R18.0bn R0.8bn +20.9% -21.1% Other R6.3bn Net bad debt income +49.7% R984m R2.
Slide 16: Group | Turnover
Group | Turnover Like for like growth Record turnover of R43.4bn +21.3% +21.9% +31.6% Online +AUD121m +£112m +11.7% (10.2% contribution) +R7.4bn Cash Sales R34.6bn (+34%) Credit Sales +32.3% +24% (20.1% contribution) +17.8% LFL Billions 10 Year CAGR R30.3bn £309m AUD624m +14.1% Australia TFG RESULTS
Slide 17: Group | Turnover
Group | Turnover Growth in all categories and customer segments Contribution and growth by merchandise category Contribution and growth by customer segment % growth % growth Clothing 82.7% +35.3% Value 35.7% +41.0% Jewellery 3.3% +21.3% Mid 20.0% +15.4% Cosmetics 2.2% +8.2% Mid to upper 42.3% +32.0%
Slide 18: Group | Turnover
Group | Turnover Comparative performance of base business 33.1% 27.6% 22.7% 16.9% 15.6% 16.1% 10.3% 7.3% Full year H1 H2 Q4 TFG Group Competitor 1 TFG RESULTS PRESENTATION excl acquisitions excl acquisitions FOR THE YEAR ENDED 31 MARCH 2022 17
Slide 19: Group | Gross Profit
Group | Gross Profit Group Driving turnover growth without sacrificing margins 48.5% +R6.0bn 52.7% 45.5% 48.5% +AUD80m Africa +£93m 43.2% (41.4% LY) +R3.6bn Jet dilution: c. -1.4% UK 56.8% (42.0% LY) Back to pre-COVID 19 level Billions Australia 64.2% (63.7% LY) TFG RESULTS PRESENTATION Back to pre-
Slide 20: Group | Other income
Group | Other income Credit EBIT Impact of lower interest rate environment c.R540m vs 2019 % of 8.9% 8.0% 6.1%* turnover Interest Income R3.2bn R2.6bn R2.8bn interest rates (225bps) 0.0 19) 0.3 Impact of smaller avg. book size 0.7 0.1 0.7 0.8 Value Added Services 2.4 1.8 1.7 acceptance rates Billion
Slide 21: Group | Civil unrest update
Group | Civil unrest update Total loss of R1.4bn Insurance claim Store impact 198 stores looted 750 646 541 stores re-opened 174 by year-end 55 Millions stores to re-open 173 22 in 2023 Damages Lost sales Damages - SASRIA Business Interruption * All amounts include VAT TFG RESULTS PRESENTATION FOR T
Slide 22: Group | Trading expenses
Group | Trading expenses Continued focus on COST REDUCTION Employment Occupancy* % of 45.3% 44.8% 45.1% 51.5% 41.4% turnover R7.4bn R4.7bn 18.0 17.1 17.0 17.0% of sales (17.7% LY) 10.7% of sales (12.7% LY) 16.0 15.8 15.4 14.9 Depreciation* Other costs R861m R5.7bn 2.0% of sales (2.6% LY) 13.0% of sa
Slide 23: Group | EBIT margin evolution
Group | EBIT margin evolution EBIT up R128m on 2020 (+2.7%) % of Group turnover 13.3% -2.2% 4.9% 11.1% 11.1% of sales +R5.5bn on 2021 Investment costs Labs & Manufacturing c. +R400m Strategy execution 1.5* Billions Base EBIT 2022 R5.7bn 2021 EBIT% ~13.2% Normalised Excluding investments & credit int
Slide 24: Group | Key Balance Sheet metrics
Group | Key Balance Sheet metrics Net Debt* Net debt to EBITDA Cash on Hand 2022: 0.20x R1.0bn 2021: -1.35x R5.7bn 2021: R1.3bn 2021: R4.8bn GEARING 2020: R8.4bn 2020: 1.64x 2020: R3.0bn Debtors book Debtors Days Inventory Inventory Days 2022: 255 2022: 153 R7.0bn 2021: 299 R9.3bn 2021: 169 WORKING
Slide 25: Group | Debt Position
Group | Debt Position Building a war chest GROSS DEBT VS ADJUSTED EBITDA* Debt/Equity ratio* 5.2% 2.2x 1.3x Total facilities 11.3 R12.7bn Available facilities 6.8 6.2 5.1 5.2 R5.9bn 2.0 Debt profile Billions 28% short term debt 2020 2021 2022 *Excluding IFRS 16, acquisition costs, UK impairment and
Slide 26: Group | Inventory
Group | Inventory Stock days down 15% and newness > 60% 177 days 153 days Conservative provisioning R7.7bn R8.4bn R8.3bn R9.3bn R1.2bn (11.0%) 2021: R1.1bn (12.1%) 1.2 1.2 1.3 0.7 1.0 1.7 1.2 Group stock turn 1.3 2.4 (2019: 2.1) 7.5 5.4 5.6 5.8 +28% Billions Supports growth in Homeware, Jet and Spor
Slide 27: Group | Capital Expenditure
Group | Capital Expenditure 377 new outlets opened 17.5% STRATEGIC UPGRADES NEW OUTLETS (EXISTING STORES) 1,600 21.3% 13.2% 13.2% c. +R1.5bn R693m new sales R307m like for like sales growth 11.0% 1,119 942 858 MANUFACTURING LOGISTICS +15m Building local QR units capacity to R213m R25m Millions c.R25
Slide 28: Group | Cash Flow
Group | Cash Flow R5.8bn net cash inflows from operating activities Stock +R1.1bn Free cash flow Trade receivables +R0.4bn R2.2bn FCF % of cash earnings 67.8% Capex: +R1.5bn Acquisitions: +R0.2bn Billions *Illustrative cash flows, full cash flow statement in appendix. TFG RESULTS PRESENTATION FOR TH
Slide 29: Segmental Performance: Africa
03 SEGMENTAL PERFORMANCE: AFRICA Bongiwe Ntuli Group CFO
Slide 30: Africa | Performance highlights
Africa | Performance highlights EBIT Profit R3.4bn Gross profit after tax Other income +30.4% R13.1bn R2.0bn R2.8bn +37.9% +33.7% +6.1% Trading expenses Finance costs R11.4bn R590m +27.4% -24.6% Net bad debt Turnover R1.0bn Tax R30.3bn -19.5% R804m +32.3% Cost of sales R17.2bn +R7.4bn +R3.6bn +21.7%
Slide 31: Africa | Occupancy Costs
Africa | Occupancy Costs Escalations Continued negative rental reversions Avg. 6.0% % of 10.9% 11.1% 9.9% turnover Rent reversions Avg. -14% 662 renewals R Rate per m2 -17.4% on 2019 Space growth Incl Jet: +52.4% on 2020 Excl Jet: +4.8% on 2020 Trading density Billions R33,000 per m2 TFG RESULTS PRE
Slide 32: Africa | EBIT evolution
Africa | EBIT evolution EBIT margin expansion EBIT margin% 17.2% 11.5% 14.3% 11.3% Credit EBIT Impact of lower interest and acceptance rates Investment costs Labs & Manufacturing c. +R400m Normalised 2022 EBIT c. 14.3% margin Adding back Discretionary Billions Investment costs and + Credit Impact *
Slide 33: R5.3bn total revenue inline with revised expectation (post July riots)
R5.3bn total revenue inline with revised expectation (post July riots) % turnover +286% +88% +132% +128% +127% growth 5.1 2.3 2.2 1.9 0.8 1.0 0.6 0.2 0.3 Billions 0.1 Home Cellular Kids Adults Total 2021 2022 *2021 values post acquisition Trading Profit Looting - Store count Clothing margin Homeware
Slide 34: Africa | Outlook
Africa | Outlook Cautiously optimistic • Inflationary pressures • Freight rate and exchange rate pressures • But adequate cover in place • Value/price engineering • Eskom loadshedding Continued expense optimisation • to partially fund new investment costs • Capitalising on our back-office platforms
Slide 35: Thank you
Thank you TFG RESULTS PRESENTATION FOR THE YEAR ENDED 31 MARCH 2022 34
Slide 36: Segmental Performance: TFG Africa Credit
03 SEGMENTAL PERFORMANCE: TFG AFRICA CREDIT Jane Fisher Group Director
Slide 37: Credit performance
Credit performance Store accounts remain in demand New accounts volume 60% Applications Approval rates 1,600 1,400 +123% c.25% 1,200 40% 2021: -42% 2021: c.15% 1,000 800 600 20% Account base Gross book 400 200 2.6 million R8.7bn - 0% 2021: 2.5 million 2021: R8.4bn H1 H2 H1 H2 H1 H2 H1 H2 2019 2020 2
Slide 38: Credit performance
Credit performance Credit health continues to improve Payments 250% 150% 16% Overdue Impairment 125% 12% 13% 19% 100% 2021: 16% 2021: 21% 75% 8% 50% 4% 25% Net Bad Debt EBIT 0% 0% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb March 11% R175m Cash collected % of LY (LHS) 2022 payments on active book as
Slide 39: Credit initiatives
Credit initiatives Collections Tymebank • Collections staff able to work from home (+7% more • More Tyme BNPL live across entire cash collected in FY22 from debtor’s book that is TFG in-store network (mid Jul’22) 6% smaller on average) More Tyme BNPL live across entire • TFG Money Kiosk to be launch
Slide 40: Credit EBIT summary
Credit EBIT summary TFG AFRICA TFG AFRICA % of credit % of credit TFG AFRICA FY 2022 FY 2021 trx’s trx’s % change (Rm) (Rm) Income 1 742,9 13,8% 1 797,1 16,6% (3,0%) Net bad debt (983,8) 7,8% (1 222,4) 11,3% (19,5%) Credit costs (584,4) 4,6% (529,1) 4,9% 10,5% EBIT 174,7 1,4% 45,6 0,4% 283,1% Income
Slide 41: Segmental Performance: TFG UK
03 SEGMENTAL PERFORMANCE: TFG UK Justin Hampshire CEO TFG London _RGB.jpg
Slide 42: Performance highlights: UK
Performance highlights: UK Turnover Increased profitability from redesigned business model +£112m EBIT margin % 5.0% 3.6% 3.7% -98.4% 7.8% Gross profit +£93m 56.8% margin (2021: 42.0%) 408 390 311 309 Trading expenses 225 231 205 196 Restructured cost base 175 83 24 EBIT 16 15 14 £24m 2018 2019 2020
Slide 43: Outlook: UK
Outlook: UK More sustainable business, less reliance on Department stores Lower turnover to 2020, however more profitable business Increased flexibility in property cost base, avg lease length now 1.2 years Investment in technology and in new customer acquisition Positive profit and operating cash g
Slide 44: Segmental Performance: TFG Australia
03 SEGMENTAL PERFORMANCE: TFG AUSTRALIA Gary Novis CEO TFG Australia Dean Zanapolis _RGB.jpg CFO TFG Australia
Slide 45: Performance highlights: Australia
Performance highlights: Australia Turnover Buoyant trade after lifting of COVID restrictions +AUD121m Like for like +15.8% EBIT margin % 7.7% 9.0% 9.9% 12.9% 13.1% 624 Units sold +13.0% 542 494 503 401 Gross profit 345 354 +AUD80m 312 320 64.2% margin (2021: 63.7%) 217 EBIT AUD82m 82 EBIT margin +20
Slide 46: Outlook: Australia
Outlook: Australia STRATEGY STRATEGY Remains unchanged and on track Continue existing Brands growth strategy: Australia and New Zealand Continue investment in Johnny Bigg USA (online site) Continue to build on the Digital Hub - Centre of excellence Continue re-platforming – ERP and digital platforms
Slide 47: Strategy and Outlook
04 STRATEGY AND OUTLOOK Anthony Thunstrom Group CEO REDBAT0450.jpg
Slide 48: A trajectory of strong performance
A trajectory of strong performance Before we look forward 10 year performance 5 Year Revenue CAGR Outlets, Turnover, Market Capitalisation Select mid-/ upper- segment retailers • Delivering vastly superior growth 60 10000 Bn 9000 4.1% • SA’s Fashion and Lifestyle 50 49bn 8000 champion 43bn 7000 40 6
Slide 49: Our BOLTS Strategy
Our BOLTS Strategy Clarity and consistency in everything we do • Our new Purpose and Vision was launched earlier this year PURPOSE We inspire our customers to live their best lives. • It informs our BOLTS Strategy to: o Build out diversified, high-brand equity businesses VISION To create the most re
Slide 50: Our growth agenda
BUILD OUT Our growth agenda diversified, high brand-equity businesses Building out our businesses • Organic growth: More than R2.1bn in Capex investment 15% 16% 17% for FY23 25% 28% • 75% of which is expansionary for new stores and omnichannel investments • Increasing requests for partnerships and/
Slide 51: Pursuing growth opportunities at a new scale
BUILD OUT Pursuing growth opportunities at a new scale diversified, high brand-equity businesses Store expansion and capex deployment Diverse brand and customer mix means there are 353 compelling new location Stores under opportunities development Continue to open in R612m new retail nodes in which
Slide 52: Acquisition performance
BUILD OUT Acquisition performance diversified, high brand-equity businesses High-growth and compelling returns over time R489m R894m R512m FY22 EBIT Phase 8 Whistles Hobbs RAG JET 30% FY22 EBIT return ACQ PRICE R2,950m R101m R278m R2,686m R385m on initial investments Potential Platform leverage Peop
Slide 53: Reflecting on our Australia investment case
BUILD OUT Reflecting on our Australia investment case diversified, high brand-equity businesses Compelling growth in our RAG business +5 years R3.1bn1 R10.7bn2 +245% Valuation* 400 554 +39% Stores R423.7m R921.6m +118% EBITDA 1 Value at acquisition based on enterprise value 2 Calculated as at May 20
Slide 54: Manufacturing capacity build out
OPTIMISE Manufacturing capacity build out sourcing mix and supply chain efficiency De-risking a disrupted global supply chain • 30% growth planned on FY22 Quick Response units in the next year and doubling the 15m Quick Response units in FY22 to 30m units by FY26 • Average own QR lead times more tha
Slide 55: Manufacturing investment highlights
OPTIMISE SUSTAIN Manufacturing investment highlights sourcing mix and ourselves and supply chain efficiency our stakeholders Into the future Re-investing in resilient manufacturing infrastructure and skills Prestige Caledon Prestige Maitland Prestige Durban Prestige Epping TFG RESULTS PRESENTATION F
Slide 56: Leveraging our assets
LEVERAGE TRANSFORM Leveraging our assets our assets – customer into a true data, store footprint, omnichannel talent and product retailer and assortment platform play And transforming into a true omni-channel retailer A key differentiator in our strategy is how we intend to leverage two key assets:
Slide 57: Outlook: Group
Outlook: Group • Various externalities continue to challenge global retail. • Australia’s reopening and robust real GDP forecast of 4.3% is positive. Upward trajectory already observable from Q3 and Q4. Further 35 stores opening will contribute to the top line. • TFG London businesses focussing on d
Slide 58: Appendix
APPENDIX
Slide 59: Additional Financial Information
ADDITIONAL FINANCIAL INFORMATION
Slide 60: Group income statement
Group income statement 2022 2021 % Change Rm Rm Full year Revenue 46 167.4 35 585.8 29.7 Retail turnover 43 370.3 32 950.3 31.6 Gross profit 21 026.8 14 990.3 40.3 Interest income 1 227.0 1 358.4 (9.7) Other income 1 570.1 1 277.1 22.9 Net bad debt (983.8) (1 222.4) (19.5) Trading Expenses (17 968.6
Slide 61: TFG Africa income statement
TFG Africa income statement 2022 2021 % Change Rm Rm Full year Revenue 33 072.1 25 521.4 29.6 Retail turnover 30 275.0 22 885.8 32.3 Gross profit 13 079.3 9 485.3 37.9 Interest income 1 227.0 1 358.4 (9.7) Other income 1 570.1 1 277.1 22.9 Net bad debt (983.8) (1 222.4) (19.5) Trading Expenses (11 4
Slide 62: TFG London income statement
TFG London income statement 2022 2021 % Change 2022 2021 % Change £m £m Full year Rm Rm Full year Revenue 308.6 196.2 57.3% Revenue 6 253.8 4 178.9 49.7% Retail turnover 308.6 196.2 57.3% Retail turnover 6 253.8 4 178.9 49.7% Gross profit 175.3 82.5 112.5% Gross profit 3 552.8 1 756.9 102.2% Trading
Slide 63: TFG Australia income statement
TFG Australia income statement 2022 2021 % Change 2022 2021 % Change AUDm AUDm Full year Rm Rm Full year Revenue 623.8 503.0 24.0% Revenue 6 841.5 5 885.6 16.2% Retail turnover 623.8 503.0 24.0% Retail turnover 6 841.5 5 885.6 16.2% Gross profit 400.7 320.3 25.1% Gross profit 4 394.7 3 748.1 17.3% T
Slide 64: Group expenses
Group expenses 2022 2021 % Change Rm Rm Full year Depreciation 860.6 857.6 0.3% Employee costs 7 366.8 5 816.7 26.6% Occupancy costs 4 660.3 4 170.8 11.7% Other operating costs * 5 655.2 4 636.8 22.0% Total trading expenses before IFRS16 adjustments 18 542.9 15 481.9 19.8% IFRS16 adjustments (574.3)
Slide 65: Group statement of financial position
Group statement of financial position 2022 2021 % Change 2022 2021 % Change Rm Rm Full year Rm Rm Full year ASSETS EQUITY AND LIABILITIES Non-current assets Equity attributable to equity holders 19 137.9 17 211.0 11.2% Property, plant and equipment 3 209.6 2 525.0 27.1% of The Foschini Group Limited
Slide 66: Group cash flow statement
Group cash flow statement 2022 2021 2022 2021 Rm Rm Rm Rm Cash flows from operating activities Cash flows from financing activities Operating profit before working capital changes 9,490.6 6,523.7 Shares purchased in terms of share incentive schemes (244.4) (337.0) (Increase) decrease in working capi
Slide 67: Additional Credit Information
ADDITIONAL CREDIT INFORMATION
Slide 68: Credit key ratios
Credit key ratios TFG AFRICA TFG AFRICA % change March 2022 March 2021 Income (Rm) 1 742.9 1 797.1 (3.0%) Net bad debt (Rm) (983.8) (1 222.4) (19.5%) Credit costs (Rm) (584.4) (529.1) 10.5% EBIT (Rm) 174.7 45.6 283.1% Number of applications 2 830 773 1 271 414 122.6% Accept rates 24.9% 14.9% Number
Slide 69: Our Footprint
OUR FOOTPRINT
Slide 70: Global footprint
Global footprint TFG OUTLETS 4 351 COUNTRIES 24 TFG AFRICA OUTLETS TFG LONDON OUTLETS TFG AUSTRALIA OUTLETS 3 087 688 576 CONTRIBUTION TO TURNOVER CONTRIBUTION TO TURNOVER CONTRIBUTION TO TURNOVER 69.8% 14.4% 15.8%
Slide 71: Footprint movement since 1 April 2021
Footprint movement since 1 April 2021 TFG AFRICA TFG LONDON ◼ Increase ◼ Decrease Chart Title ◼ Total ◼ IncreaseChart ◼ Decrease Title ◼ Total 2 929 274 62 801 3,087 Apr 21 2,929 801 Apr 21 -116 -175 3 087 688 688 Mar 22 01-Apr-21 New outlets Closed 31-Mar-22 Mar 22 01-Apr-21 New outlets Closed outl
Slide 72: TFG Africa footprint
TFG Africa footprint Country STORES South Africa 2 873 Namibia 100 Zambia 29 Botswana 46 Lesotho 21 Eswatini 18 South Africa STORES Gauteng 786 Western Cape 440 KwaZulu-Natal 370 Mpumalanga 266 Eastern Cape 277 Limpopo 273 Free State 174 North West 177 Northern Cape 110
Slide 73: TFG London footprint
TFG London footprint Europe TOTAL Stores Concessions UK & Ireland 491 175 316 Switzerland 35 29 6 Germany 30 0 30 Spain 20 0 20 Netherlands 7 0 7 North America TOTAL Stores Concessions USA 31 0 31 Mexico 24 0 24 Asia TOTAL Stores Concessions Hong Kong 16 15 1 Japan 9 0 9 Macau 2 2 0 Middle East TOTA
Slide 74: TFG Australia footprint
TFG Australia footprint Australia TOTAL Stores Concessions Australia 520 487 33 New Zealand 34 34 0