Domenico Ghilotti: Good morning. I have a question on the cost inflation, because you are mentioning sort of the supply chain disruption that hopefully can be more temporary and can abate during 2023, while we see more structural cost inflation. So if you can comment, if you see specific issues on some markets or some divisions? And then, just a clarification on your guidance, when you are saying that there is a 100bps of negative impact on OI margin for 2023. So you are mentioning a higher D&A from the investment in installed base that is probably more structural, if I understand properly. And then, you are mentioning also an ongoing restructuring in Italy that can be hopefully more a one-off. So if you can give us some color on the two contribution.
Max Chiara: Yes. So, Domenico starting from the second part and in order to help you deconstruct the numbers. So, effectively what we see is a $25 million plus $25 million D&A increase year-over-year. The first $25 million comes on the back of the installed base growth. So, it’s structural as you said. The second $25 million is associated with this new IP license agreement we recently concluded that will allow us to effectively capitalize expenses. And so, you have to capitalize first and then depreciate the expenses. The first tranche of that depreciation comes into play into 2025. But effectively the second item does not impact all-in-all the numbers because you have the positive $25 million in the EBITDA and you have a negative $25 million on the D&A.
So, net-net the OI stays unaffected year-on-year. The restructuring program in Italy is the third leg. It was a three-year program that was launched back in 2021. So, we anticipate the final leg to materialize at the end of the year and that’s the remaining bulk of that number. Going back to the inflation instead. So, I think here as well we have to deconstruct the numbers a little bit because otherwise you would come out with a wrong impression. I can tell you that the underlying structural inflation impact for both gaming and lottery in — for our business has been around 8% this year. On top of that, in gaming, we had about 20% of one-off costs. Some of those we expect to recede right away in 2023 because we have correct — course corrected our supply chain structure and the other half is probably going to fade away in the following year.
So, that’s in a nutshell where we are and what we expect in terms of inflationary impact. Obviously, there is some inflation that will kind of escalate in some of our supply contracts because they have an adjustment in a year based upon the latest measurement but this is definitely expected — covered by our outlook. And again, we’re going to continue to watch very carefully the inflation metrics as they come to fruition month after month and we’ll have opportunities to affect eventual negative impact from either looking again at our pricing or finding additional efficiencies in the organization.
Domenico Ghilotti: And just a follow-up a clarification on when you were referring to the headwind from supply chain disruption, what you’re referring, so were you including the general cost inflation that you have seen or more specifically the issues in that–?
Max Chiara: The 62 is all-in. So, respectively, is spot by — last by purchase price variance, structural bill of material cost increases, inbound freight, outbound freight, all the different components that over the year have affected the cost. But again, in a nutshell one-third is expected to fade in 2023, one-third is expected to fade out in 2024, and the remaining third is probably a structural increase in the cost.
