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[Interpreted] Good evening, ladies and gentlemen, and welcome to Dexco's Conference Call, where we will discuss our earnings for the First Quarter of 2024. This conference call is being recorded. You may watch a replay of this presentation at the company's Investor Relations website, [ ri.dexco.co ]. You can also download the presentation there.This call is also available in English. Just click on the Globe icon and select English. You may also mute the original Portuguese language audio. [Operator Instructions]Before we continue, we would like to underscore that statements about the future are based on the company's assumptions and beliefs based on the information that is currently available to them. These statements may involve risks, uncertainties because they are referring to future events, which therefore depend on circumstances that may or may not come to pass. Investors, analysts and journalists should take into consideration that any events in our macroeconomic scenario, in the industry and other operational factors may lead to results that differ materially from those expressed in these forward-looking statements.With us in this conference call, we have Dexco's Executive Directors and its investment relations team.We will now pass it over to Francisco Semeraro, who will begin. Go ahead, sir.
[Interpreted] Hi. Good morning, everyone. Thank you for listening in to our earnings call for the first quarter of 2024. I have with me Antonio Joaquim, the company's CEO; and Henrique Haddad from the Wood Panel Division; and Raul Guaragna in the Finishings Division.Starting on Slide 3, we have some important highlights about our performance in the first quarter of 2024. First, I have to say that our net revenue advanced to BRL 1.9 billion, a 13% growth in comparison to the first quarter of 2023, and this was seen across all of our business divisions. Wood Division posted a solid improvement in market share, and forestry -- and record EBITDA levels, which we will comment later on. The Finishings Division has improved in comparison to the fourth quarter of 2023 with cost improvements, and this has also brought more positive results.The company's overall EBITDA totaled at BRL 442 million, an increase of 26% versus the first quarter of 2023. LD Celulose also was impacted by a scheduled maintenance. So there was a corresponding increase in cost, but this was all in line with what had been forecasted. Total recurring EBITDA was BRL 231 million, of which BRL 113 million pertained to Dexco. So, our total EBITDA was BRL 555 million pro forma, a 14% increase in comparison to the first quarter of 2023.We now continue with Slide 4. Our starting point for 2024 was a very low working capital level, around 12% as we mentioned in our last call. Working capital advanced, still at a low level, 17%, still slightly below what we had in 2023. So across the quarters of 2023, we were very flat at 18% in working capital to net revenue, and we're now in line with that performance. So, this is normal behavior for working capital in this part of the year, because we're seeing an increase, a spike up in activities due to increased sales and higher activities at Dexco.CapEx was impacted by the performance that we saw in the Wood Division, which increased demand for wood across our business, and also as a consequence of the businesses we had in the Forestry Division. So, we see the forestry OpEx here on this table.In terms of investments, we also had significant investments for the 2021-2025 cycle, which is seen here on the table in the line, referring to projects. Our plant in Botucatu is at the end stage of its construction and should be started in 2024. So, with all of these factors, working capital and CapEx, we had a cash consumption of BRL 337 million, and we'll see this in our leverage and debt slides later on.So, to talk about debt, debt right now has been flat at 3x to 3.5x net debt to EBITDA. We concluded an issuance of, which was very important, as I mentioned before. And now, with better working capital levels and CapEx and some cash consumption, we had an increase to 3.3x, which reflects the consumption of cash and also improved EBITDA levels. So that's the reason why this is a natural oscillation for the beginning of the year, we usually have more cash consumption here and also due to the investments.I'd also like to highlight the fact that we issued a complimentary CRA, which extended our payment terms by 0.2 years. So this was a very good strategy that we've been executing in the last quarters for liability management, and we're now at a very good leverage level for the moment we're facing.Continuing with Slide 7, let's quickly discuss the wood panels market. Here we're reporting the data that was published. You can see that the market has remained consistent for the first quarter. There was an increase in 17% in total panels, and we see different performance levels in the domestic and foreign market. You can see that the domestic market grew by 10% and the foreign market by 75%. So this is something that we've been mentioning in the last few calls. The comparison last year was very low, and this is reflected in the overall figures. Specifically about the domestic market, we see positive advances in MDF and MDP, which are a positive performance in retail and in the carpentry and furniture industry.Continuing on Slide 8. Our advance in revenue volume and results are also a consequence of our share gains. So when we look at our results, they are positive, higher volumes, and we also see good results from the success that we've been having. It's also important to highlight that these performance gains have been reflected in capacity utilization, which is higher than 90% for this quarter. This also allows us to capture better margins and results through cost of dilution.Our forestry business also did very well this quarter. So, we're very happy to have used these opportunities in a positive way to provide good results for the company and for this division. Our EBITDA was BRL 439 million, up 33%, very close to the fourth quarter of 2023. And the Wood Division also posted record results this quarter.The next slide discusses dissolving wood pulp. We were impacted by a scheduled maintenance shutdown. So after that, we've gone back to previous productivity and occupation levels. This took place in March. Our revenue was not as impacted because we also made use of excess inventory, and there was a slight price reduction, so it didn't impact our revenue significantly. But in terms of the absorption of downtime, costs will be seen in our EBITDA and reported income. Looking at our results pro forma, we see BRL 230 million in EBITDA for the quarter -- BRL 230 million that is -- of which BRL 113 million were captured by Dexco.Next slide. We're going to talk a little bit about metals and sanitary ware. It's been recovering in the first quarter of 2024, but it's still very unstable. ABRAMAT still has a forecast of 2% growth for the industry this year. And their indicator for the industry is quite broad, including many other components and products besides the ones that Dexco trades.On Slide number 12, we can see our performance. Net revenue was up 4% despite volumes remaining flat, and that is the result of some commercial initiatives that have allowed our revenue to grow, specifically due to the mix in metals and sanitary ware. We see a comparison between this quarter and the previous ones, taking into consideration that there was a temporary shutdown and it was very positive and we see that it was -- it went from BRL 22 million to minus BRL 2 million in adjusted and recurring EBITDA. We've also seen higher capacity utilization, especially in metals, which is at 70%.Continuing with tiles on Slide 13. The tiles market, according to the reported data, is showing some growth. Sales have been growing overall. And we also have some in-company studies showing how much of the market is still contracted, although the entire market has been growing by 4% according to this graph, our studies show that the wet process, which is our market, is still contracted. Another important factor is that the industry is still at a relatively low capacity utilization rate, 66%.On Slide 14, we see our results for the first quarter in tiles. Volumes went up 14% versus the first quarter of 2023, and this was also due to initiatives in the commercial front. In the fourth quarter, we had some downtime at the end of the year, which was also unaffected by the temporary shutdown, and our capacity utilization was 53%.If we disregard our RC2 capacity, which was suspended temporarily, our pro forma occupation would have been 74% higher than the industry, which shows how we've been able to react with our volumes, how we have been able to control costs. And this higher capacity utilization has diluted our costs very well and also captured initiatives to deliver better margins. So all of these factors increased market share, higher volumes and cost dilution take us to a positive EBITDA of BRL 4 million from minus BRL 2 million in the first quarter of 2023.We're now going to stop our presentation to play a video about our booth at Expo Revestir, the most important trade show in our industry. We'd just like to show you some images of what we did there.[Presentation]Continuing with our presentation, here we have some of the highlights at Expo Revestir, which you were able to see in that video. This is the main trade show in our industry. As I said, we presented our booth titled Cidade Dexco and there were 200 -- excuse me, 2,400 square meters, where we received over 70,000 people across our booths. They were all designed by renowned architects, and they translate the synergy that we have across our brands.As we showed in the video, we had DEXMOOD, a brand harmonization tool for consumers and architects, which allows them to create solutions using our entire catalog of brands and products and that facilitates their design journey. We also had collabs with renowned names. We launched deep design technology, which will be used in our new Botucatu plant. It's a major innovation for the ceramics market. And we also received some Best in Show awards, especially the special ceramic piece and Brazilian design.Another important thing we did there was to put ESG in focus. We had a talk show where we showed the company's ESG initiatives. We had some dedicated spaces for our sustainability strategy in our booths. And in the Castelatto product line, we showed a new product that demonstrates our circular economy, where we take byproducts of sanitary ware and turn them into beautiful products. At Deca, we're also reinforcing a concept of using water saving products adapted to special needs.At the Duratex booth itself, we presented furniture crafted from engineered wood from the investment we've made at the DX Venture titled Urbem. So, it was very good -- in fact that we were able to show our brands, our launches. A lot of our target audience was able to attend, and we also had some ESG and strategy messages being reinforced. That was all very positive.On Slide 19, we discuss some of the future perspectives. We're still paying close attention to things that may affect Dexco, such as reduced interest rates, higher indebtedness, or domestic indebtedness levels in Brazil and higher costs in construction. Our focus, as we're coming to the end of our 2021 to 2025 cycle, is to produce all of our projects and to transform them into opportunities for the company to have a higher income.I'd like to highlight the Botucatu plant, which will bring us some very important attributes, as I mentioned, products, better efficiency and better strategic positioning to benefit our clients. In wood, our focus will be the production of wood panels as we mentioned. The performance -- excuse me, this division has had very good performance, and wood is still at very good prices. So, this just underscores our interest of paying attention to wood panels and the results that we've been obtaining from them, which have been very positive, specifically for the Brazilian domestic market.Improved profitability in Finishings, having better cost control optimization at LD Celulose [ and pulp ]. We expect to have consistent results in line with what we've been seeing in the last quarters with productivity gains and excellent operational parameters. Eventually, we might see a gradual increase in price since we're seeing a more positive foreign environment.With marketing, we've made several initiatives. We showed you Expo Revestir, but there are many other initiatives that are now taking place. And this all shows how we're focusing on our consumers and strengthening our brands. And this is all related to managing working capital, controlling costs and looking at the returns on our investments.We're going to comment briefly about our operations in Taquari. Last week, we communicated a temporary suspension there starting on Saturday due to the extreme weather event in Rio Grande do Sul. This morning we mentioned that we are gradually going to resume activities. Our industrial and forestry assets were not impacted. So this was basically due to supplies coming in and out of our operations, and also paying attention to our clients to the environment. We're gradually resuming operations there.Production and shipping, we're still monitoring the situation there actively, our operations, our employees and our surroundings. And we're very sensitive to the situation that the community is facing in the region. We've taken the necessary steps to gradually resume our work. And all efforts are being made to normalize our operation in the best way possible. Taquari has 40% of our capacity.We're still assessing any possible financial impacts. But since this was a short suspension, since we're already resuming, we expect that it will not affect the quarter or the year. And we'd like to express our concerns and feelings for everyone affected.We'll now go into the questions and answer session.
[Interpreted] [Operator Instructions] The first question will be asked by Caio Greiner from BTG Pactual.
[Interpreted] My first question is for Raul. I'd like to ask about the costs at the Finishings unit. In 2023, you had excessive inventory. You even had some downtime to reduce it. And it seems like in the first quarter you're still selling what was produced last year. So you still have a high cost inventory. If we compare the cost of what is being produced today and what is being sold, so CPT versus CPV, can we say that CPT is below CPV and by how much? Can you share that? And will that affect margin gains or losses in the next quarters?My second question is also about the demand for wood panels. That 17% increase surprised us. I understand that most of it was exports. But it really draws our attention because it is much higher than the other segments. So where is this strong demand coming from? What segments have been surprising you? And more importantly, what do you expect for the second quarter? Will the company continue gaining market share across the next quarters?
[Interpreted] Caio, thank you for your question. I think you have noticed in our communications to the market that last year we did get affected by idle capacity throughout the year. We had to start several initiatives to correct the excessive inventory that we had to gauge it correctly to what the market was demanding.So, yes, this is different in each business, but in tiles you are correct. Our inventory is still quite high, and it's been going down gradually. It's still short of what we intend to do from now on. But we're also producing at the appropriate levels with our teams now having the right size via VR demand. There was an increase in volume here despite the market going down.Looking at the Deca Division. In metal ware, our capacity utilization rate is much better. We have very well-organized teams, and our inventory will build up as our services improved, but cost levels will be much better. So we expect you have 100% capacity utilization rates. In sanitary ware, we were even more impacted. There was some downtime last year, everything we produced last year that was sold this year does carry a higher cost, so all that needs to be taken into consideration.When we look at products acquired, we're seeing a good level of stability, which is also good news. We expected costs to go up this year, but we haven't been seeing that significantly. So that's also very good for our process. So from now on, we expect to operate at good occupation levels.
[Interpreted] Caio, this is Henrique, to tell you a bit about the panels market this quarter. So, a couple of points. Our base was -- our comparative base in 2023 was very good. So that means that, by comparison, it seems to be overperforming. But when we compare to the previous quarters, volumes have been very solid, and this is across the market. There's no single industry that is much better than any other.So looking at industry and retail separately, the industry started 2024 well at sustainable volumes. Retail is still facing price competition, but it's still following a more stable path. For Dexco specifically, we started the year with strong orders, which very much helped us to improve our market share. And we're now continuing with a second quarter that also seems to be very positive. As we've been seeing consistently, we don't expect significant growth, but it's been very resilient and consistent, which is very important for us because it helps us in managing our production process and so on. So, we feel positive about that. We're doing very well. Last year it was very difficult to fulfill orders. So this year, we feel that we are very resilient there.
[Interpreted] Just a follow-up question for Raul. Raul, you mentioned that you're seeing costs much better. Can you tell us how much per unit in percentage terms it is lower, just so that we can infer what potential margin gains we will see in the next quarters?
[Interpreted] Yes. Caio, we have seen different behaviors across units. I can tell you that it's at high-single-digit differences.
[Interpreted] The next question will be asked by Marcio Farid from Goldman Sachs.
[Interpreted] I have a couple of questions. So, in LD, you have a high level of debt, but with a long payment term. But maybe it is not at the best structured. So, as you operate and pay dividends, it would be important to have a better capital structure. So my question is for Francisco and Antonio. When should we start seeing proceeds in cash and dividends for Dexco? I think it would be more in 2027 or 2028, but if it could be done before that, it would be great.And my question also for Haddad is, it's very clear that wood is doing much better than mix than what was expected. So, I just like to understand, what should we expect for the second quarter and the Wood Panels division? The level we saw in the third quarter is surprising. So, can we still consider that? Also, there was a recent change in the Arauco plant from [indiscernible]. So that will make them have no wood for its operations. So, you're now more isolated in a good way with all the wood you need. So, looking at the landscape, how do you believe the company's -- or excuse me, your competitors appetite will be to continue doing their work with high third-party wood? Sorry for the long question.
[Interpreted] Okay. So let me talk about LD first. I think we have a good understanding of the structure, and that's what has allowed us to have such a good result. So before COVID, we had a plan and we maintained a good partnership with the companies that are behind this BRL 1.1 billion throughout the COVID pandemic. So there was a risk, but all of these partners faced this risk with us throughout all of this time. So now we're at a stage in which LD is providing good cash returns, and we need to honor the commitments that we've made.So, our structure needs to balance itself out with the dividends that we have to pay out. So, we're looking at what we can do, the economic conditions, but we're confident that -- in the structure that we have. And our results for LD will gradually become better. So we hope that its performance will justify the results in dividends that will be paid for our shareholders. I think that's the biggest driver for us.We know that the company is at a very solid position generating operational cash, and that will be a better environment for us to discuss these aspects and maybe even bring dividends into the structure as soon as we can. But yes, we have been looking at LD's performance closely. And although dividends and cash generation are not exactly in our pockets yet, it's almost as if it were. We see results in needs for LD being very balanced by the operation.
[Interpreted] Okay. Farid, let me tell you about the second quarter. We have been focusing on margin improvements in the Wood Panels business, not necessarily only wood sales or forest sales. If you look at our strategy from Raul in the past, we've been working under a principle of optimal use -- optimal capacity utilization. So we're paying attention to these opportunities. At the end of the day, we don't want to waste money. We are at the right performance level.We don't have any visibility, at least on the short-term of having forests, I mean, that's not our horizon. What we could do, we have done, but we're piloting this operation. And that's a relevant point because it's difficult to foresee what's going to happen, but our focus has been selling panels. We're working strongly on that to try to improve our mix with our clients. As I said, being at the right service level, our position is very good, which helps us with logistics. So we're working across several variables. So we're confident that we'll be able to keep a positive trend for the year.Once again, it's not going to be at a different level, but we'll be able to deliver resilient and consistent results without compromising these one-off sales of forestry. Nothing has changed in the forestry market. We're still seeing some great trends, especially in wood and pulp. Arauco itself has been accelerating its Mato Grosso do Sul project to implement a new plant.Suzano very soon will start operating its project in the Cerrado region. There are other projects being communicated and disclosed. And of course, we have Brazil as a country, and Brazil has different regions depending on where you are, circumstances will be different. For us, what we see in the horizon is that there's no potential reduction in the price of wood. Of course, everything is manageable when you are able to replant and adjust your capacity, but we do need time, so nothing happens overnight.
[Interpreted] Marcio, just to add to Haddad and Francisco's statements. We have been seeing for some time that high cost forests are here to stay for a relatively long horizon. This problem in Brazil doesn't have a short-term solution, so we can expect a long time, maybe up to 10 years, for it to be rebalanced again.There are major projects coming up so we see further project in Arauco and Suzano, the operation in Mato Grosso do Sul in El Dorado, which will integrate it into a second line. So, there are projects being analyzed as well in Minas Gerais. So, the market is short of wood and will continue to be so for a long time. So this process really favors the efforts that Dexco have been made to be self sufficient.As a reminder, we continue to invest in our forestry base in the Northeast. We have a number forest ready there, and this capacity will be doubled. So, the company has a solid opposition. And you have to remember other effects. As you said, each company will have its own strategy, but we feel from the clients that they're trying to be in places where supplies are solid. Because really when it comes to wood, things might get worse before they get better. So there will be a long process, there have been new signals that it will get better soon. This has been impacting every company and companies as a consequence, and the wood panels industry will be affected.They will have higher costs, and this might lead to many things. At some point, prices will need to be reset, and in a way that will be positive for us when it happens. And this has made our operation more solid. I've said in previous moments that wood for our operation -- or the forestry operation is the perfect hedge. It's very good. So, if at any moment we see a reduced demand, we'll have -- if we're able to fill up plants and operate our plants, this will give us good results. So, this is what we are looking at, and this is what you're going to see.So, when you ask about quarters where we will not be able to sell forests, don't expect it to happen every quarter. These are structured initiatives. So, in some times like this first quarter, we're going to sell wood. We'll get together to do it and have a more structured operation, but it is an important hedge and it positions wood very well. So, I am seeing a very positive period for the wood division, and don't forget that LD is also in this context.It is also a company that is practically self-sufficient in forestry. It doesn't buy much from the market, and it also benefits from a positive cost. So we will pay attention to any opportunities that we may have to improve our debt. We're always working on that. And we really expect -- well, LD has the most important thing, which is that it's a plant that runs every day of the year except for some downtime -- some scheduled downtime. So we're very happy with the productivity that we've had. We've gone over the nominal capacity. So, we're really starting to see a lot of good and successful engineering at the plant.
[Interpreted] Okay. So I'd just like to ask Raul something, and this is very important. Raul, of course, this is a great moment coming from a place that was not as comfortable. So, to reach that 15%, 20% margin that you mentioned, which I think is -- was your target, how much of your challenge has already been executed? And how much does it still depend on luck or chance or a macroeconomic factor?
[Interpreted] I hope we don't have to depend on luck. The market always depends on luck for some extent. But for our plan, we did not consider market growth. So, we were really confident in the structuring initiatives that we had. What we can see is, the most important ones, the most impactful ones and the ones that will be the most painful, when it comes to the results for the year, have been executed in 2023, but we can't stop.We always need to look at structuring initiatives and other things that we'll have to navigate and pilot in such a challenging market scenario. But I can tell you that everything we needed to do that would have an impact has been done in 2023. Now, as the market improves slightly in deca, but not in ceramic tiles, that is, we should have a better situation than what we had in the past.
[Interpreted] The next question will be asked by Leonardo Neratika from Bank of America.
[Interpreted] Just a couple of follow-up questions. When it comes to LD, Antonio, you mentioned that you've been running above the plant's capacity utilization rate. So I'd just like to ask about any discussions on debottlenecking the plant and what potential volume can you achieve looking at the plant's annual capacity?Secondly, in forestry, everything that we're mentioning here is based on having a very tight inflation scenario. But you mentioned that you reviewed biological assets because of these changes in forestry prices. So, how does that match what we've been talking about the tighter market for the next years? Finally, in this outlook of having strong panels demand, what are the discussions like on price? We're coming into a scenario in which we can start discussing better prices for the next quarters. Is that right?
[Interpreted] Okay. About LD, so in rough figures, this is a 500,000 ton per year plant. Normally, this kind of project gives you some possibilities. We considered that at the beginning without any further investments, but just by fine-tuning and adjusting operations to reach an additional 10%. And we had a plan of gaining 1% a year until we reached 550,000 in the next year. So what we've seen is that we are very close to that 550,000. We have been operating consistently at annualized ad hoc of 540,000.So, I think that the following year will be very close to this level of 540,000, 550,000. And from then on, this is not a plant that can be debottlenecked and made to grow 20%. It has been designed and projected for this process. So, we believe that it will be debottlenecked, but that will require higher investments. But there is a step with low investments -- like that no brain investment, you might be able to elevate this and add 10%. So, getting close to 590,000 or 600,000, and that is the maximum. There's no technical possibility because that would need digesters and so on. So, above that would require a new plant.So we're paying attention to that. Our focus has been capturing the 550,000 with low investments as soon as we can continue running at that level, and we believe that that will be possible with all the use of eucalyptus, it really has been very successful. So we don't have a plan yet, but our engineers, our technicians are working on that, and at the right moment we will have possibilities to do something. Right now, we're focusing on stressing our production capacity without any investments. So that's basically it.Francisco, you can add information to that.
[Interpreted] Yes. Antonio mentioned performance expectations for the forestry assets. According to the accounting rule that we follow, we need to consider a value of this significant asset. And the principles preserve some stability so that we don't bring major changes to our balance, but the price of forests have gone up significantly. So this is something that we mentioned during the last Dexco Day.When we talk about stability, we mean that the standards ask us not to change it in order not to make it too dynamic, but there is some stability. We haven't changed the price in biological assets because we don't want to report major gains, major ups and downs that may happen due to one-off things. But the fact is that there is some pressure due to everything that we mentioned, and it has been higher than what was expected. But we do studies, we look at third-party sources. We try to get as much information as we can to capture an average. But some things have been outside that average.And we're talking about reducing the speed in which it increases. We're not talking about a reduction. If you look at the last 3 or 4 years, it's from 50 to over 200. It has been significant. So naturally, at some point, you would see a deceleration, but not a reduction. But even when it comes to the balance, all indicators show that it's at a very high level. So, it really has been changing very quickly in comparison to the end of 2022, which was the milestone where value started to go up.And the last point you mentioned, Leonardo, was on price. Definitely something will happen in the next quarters. I can't tell you exactly how much. Like I said, we've been monitoring it closely with our clients. We're also looking at our competition closely. But in this scenario, wood costs, rent costs -- land rent costs, we have to consider that there might be changes in price, but our commercial policy is longstanding. It's a little bit more elaborate.We try to curb what is reported as growing. We're close to some areas, most of them actually, where there is a high demand. So we can do that very well to remain competitive. Above all, what we want to make clear is that we're operating across all of these variables. We don't only want to have a profitable variation, right? It's easier said than done, but we're trying to have a fair market share in the market.
[Interpreted] That concludes the questions-and-answers session. Any additional questions will be answered after the end of this conference call by our Investor Relations team. We will now hand it over to Mr. Antonio Joaquim, who will make his closing remarks.
[Interpreted] Thank you very much for participating. I'd once again like to restate the commitment that we've been honoring in the situation in Rio Grande do Sul, where we have a plant, we have significant clients. So we have a protocol ready for situations like this. We're helping our employees and we're in constant contact with our clients who have been affected to different extents. Fortunately, we're starting to see that many clients are resuming their operations. You know that southerners in Brazil are very resilient, so they will definitely be able to get out of the situation with the massive support they've been getting from the rest of Brazil.I'd like to say that our expectations for the year are that the construction material market will recover, but still slowly, meaning that some months will be better than others. We're very confident in saying that we are making all efforts to adjust and correct our course. We have very relevant projects to help the wood division, deca and so on. We have significant projects and we expect to see the results very soon, still this year, in fact. So the effort is still being -- our work is still being done.We see that the political scenario has still been a little bit concerning. When it comes to interest rates dropping and so on, there are still conflicts in the government about that. So, we have to see how it goes. We want to ensure that our clients are serviced very well. So, we've been making an effort with numerous clients about changing showrooms, preparing stores, showing our new products, and we're very glad that we have had a good partnership with our clients. We are sure that good things are still to come.So, thank you very much. The team is still available. If you have any questions, you can contact us. Thank you, and have a good day.
[Interpreted] This concludes Dexco's conference call. Thank you for listening, and have a good day.[Statements in English on this transcript were spoken by an interpreter present on the live call.]