Unipar Carbocloro SA
BOVESPA:UNIP6

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Unipar Carbocloro SA
BOVESPA:UNIP6
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Price: 44.7 BRL -1% Market Closed
Market Cap: 5.1B BRL
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Earnings Call Transcript

Earnings Call Transcript
2023-Q2

from 0
Operator

Good afternoon, and welcome to the Second Quarter 2023 Earnings Conference Call of Unipar. [indiscernible] and our IR team. We would like to inform that this event is being recorded and that all participants will be listen only mode during the company's presentation. [Operator Instructions] The slide selection will be controlled by you and the audio of this event will be available on the company's website after it's completed. [Operator Instructions] Before proceeding, we would like to clarify that any forward-looking statements made during the conference call regarding Unipar's [Indiscernible] Financial Global Operations and projections across constitute base and assumptions of the company's management as well as information currently available to the Unipar.

Forward-looking statements are no guarantee of performance as they involve risks, uncertainties and assumptions because they refer to future events that depend on circumstances that may or may not occur. Investors and analysts should understand that general economic conditions, industry conditions and other operating factors could affect Unipar's results and could lead to results that differ materially from those expressed in forward-looking statements. I would now like to give the floor to Mauricio Russomanno who will start the presentation.

M
Mauricio Russomanno
executive

Good afternoon, everyone. Welcome to our conference call. Today, we'll discuss the operating and financial results of the second quarter of 2023. As usual, I will start by presenting an overview of the market scenario and the company's performance and then our CFO, Marco Rabello, will provide details of our financial results. It's important to start this conference call to [indiscernible] about the economic scenario and the situation under which we operate. The petrochemical industry [Indiscernible] expected downward cycle in the commodity prices and international markets, which affect all companies operating in the segment across the globe.

In addition, I would like to point out that we have been facing a great [Indiscernible] with the consideration of the Russia, Ukraine war, which impacts production chain, cost inflation to accelerate globally affecting input and the demand for profit. As a consequence to the economic austerity measures taken globally and in Brazil, such as interest rate hike to contain the effect of this instability and that worsening the impact on several sectors among them, construction, steel, mining, the chemical industry depends on those factors.

As a result of this adverse scenario has low demand in global markets, international industries are directing products to Brazil at even lower prices. This is because these international players are favored by a significant structural advantage in the cost framework with lower energy cost, better taxes and more efficient logistics. For example, the price of natural gas in the United States is on average around $2.5 per BTU, the [indiscernible] Brazil, average cost is [indiscernible]

In other words, it necessary to consider the so-called [Indiscernible] when we think about the competitiveness of the sector that has suffered from a significant increase in imports in recent years. I would also like to remind you that last week, the Brazilian Association of Chemical Industry released a report that indicated an additional reduction of 4.6% in the national demand for chemical products for industrial use in volume in the first half of the year.

The [indiscernible] average price of the imported products with a drop of 28.2% from January in the annual comparison with an impact on national prices which recorded a deflation of 9% in the same period. Despite a one-off fall in recent months, the share of imports has remained at very high levels such as the current [Indiscernible] that has persisted since the beginning of the year. We have an idea of this growth just observe that in the period 2009, 2010 the share of imported products stood at 29%. In view of these numbers [Indiscernible] chemical industry is facing a challenge in the competitive area.

In this term, it's always impossible to compete with an imported product which has the structural advantages as previously mentioned. The scenario combined with adverse context of interest rates, drop in commodity prices and the impact of the production chain as a whole and reflecting in the sector figures in Brazil, as we have mentioned in the past 2 quarters. It's important to point out, however, that even under pressure by external factors, Unipar continues to do its part.

We achieved solid results and [indiscernible] financial and operation at healthy levels. We recorded our [Indiscernible] Unipar history when we look at our EBITDA. In addition to proceeding with our investment plan, holding a long-term vision and its execution with discipline [Indiscernible]. In the first half of 2023, we recorded BRL 178 million in CapEx. This number is significantly higher than the years posted in the first half of 2022 when we allocated BRL 75 million.

We are a capital intensive company and [Indiscernible] low in price which are part of the company's multiyear brand. We will have broad investments this year 2023 and in 2022, and all the investments already made have been translated into operational improvements, productivity gains and increased production capacity.

It was already expected that this would be a year of lower results actually compared to 2022, which was a year of historic record. But given the first scenario, we understand that our results are very positive, and we remain firm in our mission [indiscernible] implies with our strategy based on five pillars. Sustainable growth, operational excellence, competitiveness, human culture and sustainability. This is the support for our deliveries in the future.

On the next slide, we will bring information about our continuous evolution in this direction and the transparency in the data we provide every quarter. I begin by highlighting the operational performance of our plants. The investments made in [indiscernible] and the ongoing maintenance improvement and modernization work have brought us to a comfortable level with solid and positive results.

In the second quarter of 2023, Unipar's consolidated capacity utilization rate stood at 82%, a reduction of 2 percentage points. We have a very close [Indiscernible] quarter, when we reached 84%. It is important to point out that Unipar's index is considerably higher than the industry average of [Indiscernible] according to [Indiscernible] data and the highlight for the quarter, important to mention the operation of the Cubatao unit with 90% capacity utilization in addition increase in PVC production volume in Bahia Blanca by 14%, both in comparison with the results obtained in the first quarter of this year.

Within our pillar of sustainable growth, expansion plan for our Santo Andre plant which celebrated 75 years of operation on July 25 entered its final phase , in line with our widely communicated schedule and confirming our execution business [indiscernible] project which received a total investment of BRL 100 million, started its ramp-up with the connection of the [Indiscernible] that have been delivered in April as reported in the first quarter of 2023.

We reaffirm the start-up deadline for the second half of the year. The new structures will be reasonable for increasing capacity by 50% of [hydrochloric acid] for the unit. This is a highly demanded input in the manufacture of chemical products used in the treatment of water and sewage, which with the maintenance of the main rules of the sanitation framework continues to be highly relevant in the industry. I would like to point out that in this expansion, the [indiscernible] equipment with new technology consumes 18% less energy than equipment of the previous generation.

Furthermore, the new furnace, we chose produce a steam and as a result, we do not need to use the [indiscernible] reducing our emission by around 2,000 tons of CO2 per year and [Indiscernible] of consumption of cooling water compared to the [indiscernible] which do not produce steam. It's also important to highlight the construction of the new Unipar plant which will be installed in the petrochemical complex of Camacari in Bahia which is on schedule and its operation as scheduled to start in 2024.

Design from modular technology, which allows better capacity expansion, new factory reinforces Unipar's positioning in the Northeast, the most deprived region and where the greatest development in sanitation is expected in the next 10 years. When in operation, the units will have a total capacity of [Indiscernible] tons of chlorine and 22,000 tonnes of caustic soda produced according to the [Indiscernible] most modern and acquisition criteria available ensuring the smart use of energy and other inputs. In Argentina, we are reaping the benefit of Bahia Blanca with investment [Indiscernible] years, we made a bit more efficient in order to expanding the chlorine capacity.

With this, we will offer hydrochloride for the first time in Argentina market. The industry has a high demand for this product. The operation should start in the fourth quarter of this year with a capacity to produce 50,000 tons a year, which can be expanded up to 90,000 tonnes per year in the future when [Indiscernible] serving logistic options to make and [Indiscernible] our other geographic expansion initiatives. The offer of hydrochloric acid is still low in Argentina, and this input is essential for the development of lead engine, which continues to expand.

[indiscernible] offer, Unipar is strategically positioned to capture such an opportunity. Presented at Bahia Blanca unit also allowed us to expand the production capacity of [Indiscernible] cost exposure rising from the current 18,000 tonnes a year to 31,000 tonnes by the end of 2023. At [indiscernible], we have already started to prospect new customers for this product. I would like -- I would like to take the opportunity to update the information on the program of Unipar, renewable energy, self-production initiatives [Indiscernible] our strategic priorities, as we have disclosed there are structuring projects with high impact, both from an economic and sustainability point of view.

We reached 36% of production of renewable energy and the consumption of our plants in Brazil and also started the production of green hydrogen, resulting from the advances of our [Indiscernible] production partnership. In April 2023 the [indiscernible] joint venture with Atlas Renewable Energy or Photovoltaic energy generation in [indiscernible] Minas Gerais obtained for definite entry into commercial operations through an official order by [Indiscernible] and with the execution of an additional PV to supply Renewable Energy through our production of [indiscernible] to kind of [Indiscernible] complex in partnership with AES Brazil in Bahia has 18 of its 25 with turbines in operation and supply renewable energy to [Indiscernible] to the Cubatao plant as well.

Cajuina wind complex, partnership with [Indiscernible] generation of [Indiscernible] Energy in Rio Grande [indiscernible] start operating has been placed later this month in August. We are building the future in which '25 will have access to energy price predictability, cost reduction to charge exemptions, carbon foot print reduction, green hydrogen production, and new green products. By 2025, 100% of all energy to supplier plant in Brazil will come from renewable energy, 80% of which will come from self-production and 20% from long-term contracts.

Together, the 3 project will have an installed capacity of 485 megawatts of energy, electricity, which 190 average megawatts will be consumed by Unipar's plants. On Slide 8, we'll discuss sustainability. So along with our results release, today, we present in society and to the market, the second Unipar's sustainability report with data from 2022. We document all of the rules of global [Indiscernible] GRI, and uses the reality metrics as the basis where [indiscernible] report in the material which brings together 121 indicators is a great [indiscernible] of our data and sustainable impact project.

This work involves the entire company [indiscernible] involving employees from 15 different areas in addition to specialist external consultants. In addition to our report, which describes our solution in sustainability, another important step in July is our first participation in the Unipar Group with 3 units in the index of climate resilience of the carbon disclosure [Indiscernible]. This is one of the main global references on the climate issues. And we took an important step towards the transparency of our information on the topic or [indiscernible] visible in our daily life was recognized in the 2023 ESG [Indiscernible] Award. Unipar won the ESG commitment category.

Finally, I want to point out that we also continue to direct attention to the social aspect. As I have [Indiscernible] , this year, we are supporting 43 projects around [BRL 50 million] with the objective of replacing approximately 900,000 people are focused defining our sustainability guideline is on development with investment in projects related to sanitation, education, cultures, or social action. I always highlight some projects here. At this time, I want to draw your attention to specific projects that strongly represent the pricing we have taken.

First is the one closing campaign which involve Unipar's 2023 in addition to the members of the consultant community councils [Indiscernible] which provides more than 600 [indiscernible]. To complement the donations [Indiscernible] blanket as estimate for such a mobilization, the donations were directed to different institutions in Brazil and Argentina. Another relevant projects, which [Indiscernible], a partnership at Unipar's [Indiscernible] was to inform and provide population with services of assistantship, leisure and culture and matters related to health, [Indiscernible] between events brought together around [indiscernible] people who took advantage of an expensive programs with medical, dental [Indiscernible] wellbeing and psychological assistance [indiscernible] center and also environment and social requirement activities [indiscernible] image is a [indiscernible] have no fees and a for the tile gaining dignity and self-esteem. I turn the call over to Antonio Rabello, our CFO who will provide details of our financial results, and we'll talk more about the scenario.

A
Antonio Marco Rabello
executive

Thank you, Mauricio. Good afternoon, everyone. It's an honor to have you to be with you. As a result will begin. I will now go through the financial highlights for the second quarter of 2023 as well as the year-to-date results in the first half of 2023. Moving on to Slide 11. We recorded net revenue of [ BRL 1.3 billion ] in the second quarter of 2023, a 16% reduction when compared to the first quarter of this year. This is a reduction in international prices, both for caustic soda and PVC and the drop in PVC sales volume in this period.

These effects can be observed when comparing in the second quarter of 2023 with the second quarter of the previous year 2022. Regarding the distribution of revenue by type of product we observe a slight increase in the share of chlorine and derivative in relation to other product also due to the drop in international prices of Caustic Soda and PVC since chlorine and derivatives have a local price dynamics and are reported in [indiscernible] Moving on to Slide 12. Net revenue for the year was [BRL 2.9 million] 15% lower than that of the second quarter of 2022 mainly due to the drop in international prices. Regarding the distribution of revenue for our product, we [indiscernible] detain comparison by quarter increase in the share of chlorine and derivatives.

On Slide 13, down of consolidated COGS, which was BRL 827 million in the second quarter of 2023, a 13% decrease when compared to the first quarter of 2022. This was driven by the drop in PVC production and sales, resulting in lower consumption of raw materials, price reduction of some input as ethylene and natural gas. Now moving on to Slide 14. In the first 6 months of this year, accumulated BRL 1.8 billion, 13% reduction when compared to the second quarter of 2022 with the distribution between variable fixed and depreciation at the same level as posed over the previous half of the year. On Slide 15, we see that the EBITDA in the quarter was BRL 370 million, a 24% decrease when compared to the first quarter of 2023, for the reason previously explained, international prices and sales volume.

We would like to reinforce that our operation in Argentina characterized as a higher inflationary is currently subject to the application of IAS [indiscernible] the second quarter of this year, the application of this rule and the exchange variation of their [indiscernible] generated a negative effect of BRL 38 million on the EBITDA compared to 35 million [Indiscernible] year with no cash effect for both cases.

The effect of this [indiscernible] results from the combination of [Indiscernible] on our income account with a counterpart in the financial results and the difference between the conversion of the results in real EBIT closing exchange rate of the reported period and converting the average rate of the accrued period. On the same slide, we see a net income of BRL 180 million in the second quarter of 2023, a 26% increase when compared to the first quarter of this year.

On Slide 16, let's move on to that slide, we indicated that the accumulated EBITDA and net income in the first half of the year of 2023, with EBITDA margin in the first half of the year was 30% with BRL 860 million generated and once again we make reference to the impact of the application of IAS 29 and exchange duration of the peso. This is noncash effect in the semester and stood at BRL 73 million. Net income was BRL 439 million, 27% higher than that of the second half of the last year, which had a negative noncash impact from the [indiscernible] funds from [Indiscernible] resulting in a relevant financial expense in that period.

Moving on now to information related to debt on Slide 17. The net debt is negative at BRL 33 million, and there is no concentration of maturities in any specific year. We have no major upgrades in gross debt when compared to December 2022, and we maintain appropriate cash position of BRL 1.3 billion. This demonstrates the company's commitment to financial health and potential strategic business in addition to the evolutionary comparisons with the previous quarter and previous semester carried out in the call.

The comparisons of results of the first half of the year in comparison to the same period of last year are also contained in the earnings release and in audited financial information such as the results previously disclosed. This generation on Slide 18, where we present the cash flow for the semester shows that the operation generation stood at BRL 922 million, more than enough to make the commitment related to the payment of income tax, ratio contribution, amortization of financing and CapEx. We ended the period with a robust cash position of BRL 1.3 billion, as I mentioned previously.

Moving on to Slide 19. We would like to highlight the positive variation of unit [indiscernible] in the last 3 months with appreciation of 16%. We would also like to highlight an important milestone for Unipar, which was reaching more than 100,000 shareholders in our current base. A relevant growth when compared to the approximately 30,000 shareholders that we had at the end of 2021 and 60,000 shareholders at the end of 2022. This demonstrate that we are complying with what the [Indiscernible] with transparency and a relationship of trust with the financial markets, which is reflected in the attractiveness and interest of our shares that are traded on [Indiscernible].

Finally, I would like to mention the nonbinding proposal we made for the acquisition of shares, [indiscernible] the proposal was presented on June 10, those details were disclosed in a material fact on the same day. The proposal expired on [indiscernible], the company continues to discuss with the [Indiscernible] holders directly involved in the operation. Any new proposals should only occur after the due diligence of [Indiscernible] development negotiations [Indiscernible] shareholders of other transactions. Any update will be duly disclosing to the market in accordance with current law. Unipar continues to apply in transparency and [indiscernible] acted throughout the process. We are now going to open the Q&A session.

Operator

[Operator Instructions] The first one is from [indiscernible]

U
Unknown Analyst

I would like to know about the offer. I understand there are some limitations related to a process like this. But I would like to understand the information you can disclose and how [indiscernible] and the assets are different from the other players. And now we're asking if the company is interested in the offer.

A
Antonio Marco Rabello
executive

Thank you very much for the interest in the [Indiscernible]. As I said, we cannot disclose all the information, but answering all the questions. Yes, a continuous in process. As we mentioned during the speech, we continue interacting with the stakeholders, and we continue driving for success in the operation, is a long asset. We have been negotiating for 4 or 5 years, and we continue looking for a format that would meet everybody's expectation. And answering the question first, one of the drivers is that we are to be part of this project in terms of leverage and financial structure.

It is an advantage that we have. And in relation to the other players is that we are operators in the sector. We have deep knowledge in petrochemical as I mentioned. And we operate in different segments and different plans and plan to have currently owned by [Braskem], we are an operator focused on industrial performance and we believe that the company just [Indiscernible] that was structured from acquisition and mergers from different plants along its history in [Indiscernible] and many other companies that were part of the company and with all this information in the petrochemicals, and we are sure that we are going to bring a lot of action focused on development so that we can make a path of all [Braskem's] efforts [Indiscernible] advantage a lot. And in addition to all, we are everything in company and in [Indiscernible] not only to the sector, but to the company and to the country as a whole.

Operator

In addition to the question from [indiscernible] if this negotiation is not successful, what are the -- as for the company, are you on or [Indiscernible] other M&As for organic growth?

M
Mauricio Russomanno
executive

[Indiscernible] our sustainable project or greenfield projects, as they are all aligned with the important land we established and we continue all this direction. And in addition to that we continue observing opportunities in the market with other M&As and the company continues for the purpose. [indiscernible] which are all aligned with Unipar's. So we are on lookout for assets that would complement our portfolio so that we can double our size within 10 years.

Operator

Another question from [Indiscernible] can you provide an estimate on cost reduction for the future with this ramp-up for energy production.

U
Unknown Executive

Energy generation projects that have been developed in the past few years will be in the ramp-up moment, obviously, only 2024, we'll be able to have the full effect of the benefit of [Indiscernible] production. These are the benefit of the company as a whole and also to the EBITDA we do not usually disclose the cost involved at this time. Those who continue with us in terms of investment, we'll start observing those effects in a more clear way when we'll be able to provide the details on our results.

But for the time being, we are not able to disclose them.

Operator

We have 2 questions related to crisis of chlorine -- of soda and PVC, [Indiscernible] ask about -- about [Indiscernible] international market. And if the [indiscernible] at this time. And the other question is about the [Indiscernible] of PVC, expected for the end of this year and also for 2024.

M
Mauricio Russomanno
executive

Thank you, [Indiscernible], for your questions, and we can see in the result of the second quarter, even the price is adjusted for [indiscernible] still had a profitable term with positive income in spite of the levels lower than those on last year at [Indiscernible] pricing, we are still able to operate at a profitable EBITDA -- on the second quarter was [28%]. So obviously, we had to resort to other dimensions in order to offset the drop in the market [Indiscernible] variable prices, improvement in fixed costs.

We needed to look at different products in our portfolio and have different pricing in other markets, in addition to the team and operation that contributes in a significant manner in this regard. The company will have the policy of not providing guidance, but what I can see [Indiscernible] we have to be on the lookout on the PVC market, the civil construction market is very relevant that we have to [indiscernible] what to happen in the construction market across the world. And the [Indiscernible] conditions and the interest level will play out.

And this will provide a guidance -- or guideline of what's going to happen in terms of PVC prices. As to caustic soda this is more scattered, but there are some industries which are very relevant [Indiscernible]. So these are areas where consumptions are very high, of [aluminum mining].

Operator

We received the question related to a drop in interest rates [Indiscernible], I believe you have already answered this question. There's another question.

What led to the remittance [Indiscernible] Argentina? And what was the amount that was allocated in the [Indiscernible]?

A
Antonio Marco Rabello
executive

Thank you very much for the question. So maybe it was not very clear during my speech, we did not bring resources from Argentina in 2023. I refer to an operation that was made in the third quarter of 2022. We made some comments about this during the speech, to talk about the net income comparing the period and we raised why the net income was lower than the current period. We did not bring the resources in this direction in 2023.

Operator

We received some questions related to dividend distribution of dividend. Does Unipar have any plans to distribute totally events [Indiscernible] forecast and the distribution in August and November last year. So I can see there's a repetition of this question. It's just natural in this period of the year.

M
Mauricio Russomanno
executive

I think that, first of all, when we look at the situation of [Indiscernible] commitment to pay dividend, it also line with the execution of CapEx, when we consider the main pillars and when we consider the [Indiscernible] sector of the company, considering that this is a year when we expect a lower -- so if we pay any dividend we will be from [Indiscernible] line so we are going to wait for the end of the year in order to have more clarity and more trust in the results of the company and also the cash generation in order to define the distributions and also related to the volume of dividends that will be distributed to [Indiscernible] about the interest on equity.

And payment of dividends and any [Indiscernible] of taxation. The addition of dividend discussion was not in the media in the previous month. And we have observed that [indiscernible] in more intensive way and the possibility of taxing the dividend. We will to continue the update. Actions are implied, nothing will change. We are going to continue distributing dividends according to the one that the company will take. And also, we are going to look at the cash generation to make the decisions on dividend distribution. And we are going to continue using the same previous practice with the idea of a 25% of the results of the company.

This is according to our policy.

Operator

[Indiscernible] there is more as a question as [Indiscernible] on the results. And what about energy generation and [Indiscernible] there is a new plant. We established -- are you considering new partnerships with AES or other electrical companies?

M
Mauricio Russomanno
executive

For the company, as I mentioned in the beginning of the presentation, we are working [Indiscernible] for the operational the first one is to come. We have 18 of the 25 [Indiscernible] solar contract started operating 2 months ago and we are receiving proceeds from the past and the other [Indiscernible] at the figure. So we have 80%. And the 20% [indiscernible] in terms of energy industry market. And we are going to [Indiscernible] the goal of having renewable energy up to 2025. [indiscernible] another expansion, we will decide whether we are going to have another complex or if we [Indiscernible] what we have. We are still evaluating all the options. So we're in a very favorable for those long-term contracts.

We are on the lookout on the market, and we are going to provide update briefly.

Operator

[Operator Instructions] question comes from [indiscernible]

U
Unknown Analyst

Could you tell us more about the green hydrogen plants in the production of the chlorine which [Indiscernible] is a products.

M
Mauricio Russomanno
executive

Unipar has been introducing hydrogen for a long time. What happens to the hydrogen today. There are 2 [Indiscernible]. One is to burn natural gas and it's used in the operation itself because it's cheaper [Indiscernible] than the gas, and we have favored cost -- and this is why [indiscernible] producing in Cubatao plant related to our own operations. The [Indiscernible] that is produced in a [indiscernible] We do not use it in the operation, but we sell the hydrogen, different clients in the market. And with this transformation of renewable energy to create energy and our input [Indiscernible] water and salt, so hydrogen will be green. We are already producing it. And the point is how will the market behave in terms of pricing on the fees and [indiscernible] green hydrogen.

So we continue using green hydrogen in our operations. And in the second half of the year, we are going to launch. We are still certifying all , but we will have green products that will be accounted for in terms of carbon to our clients as [indiscernible] or at the moment, we may [Indiscernible] hydrogen to the market. It is economically feasible or adequate and if the industry and other factors would be interested in using this specific hydrogen.

Operator

Another question, [indiscernible]

U
Unknown Analyst

Congratulations on the results in relation to share buyback, the market value, rotation of the share to start the repurchase profit with [Indiscernible] what's the method used.

M
Mauricio Russomanno
executive

In the same quarter of this year, we renewed our program of share buyback and the calculations made on 10% of all the negotiations of our shares in the past few months. So we have a term of 18 months, have to be compliant within this program. And this is a variation that we consider that time to time when we decide how we can best use the liquidity of the company and what we believe that is likely to happen in the future.

There is no -- there's no fixed range. This is a calculation that made every period. And will also depend on liquidity and the cash of the company. And then we define what would be the volume of share buyback. But we do not have a definite range at the moment.

Operator

We conclude now the Q&A session. I'd like to turn the call back to our officer for annual remarks.

M
Mauricio Russomanno
executive

Before wrapping up, I would like to thank our employees who work again [Indiscernible] and in the past few years, despite of all the adversity have been taking all the challenges, improving operations, improving the management, needing to not only excellent results, but also results which are confident and [Indiscernible] when the market is not [Indiscernible] as the prices are lower. We feel that we are much better prepared than we were at the time of the COVID pandemic, so the company's much prepared to all the partners [Indiscernible] work with us every day to [Indiscernible].

As a group, we are going to continue moving forward into this journey side of market, which is different growth [Indiscernible] past few years, we have been to continue making investments or investments or long-term investments that will prepare the company to the future. And we are going to continue implementing our holistic strategy based on the [Indiscernible] and for that purpose, we count on the support from our board and also everyone support so that we can continue implement other programs and we would like to thank all [Indiscernible] client, partners who have been ever closer to us and have been working in a more cooperative way, which is so important for all of us, especially now for the new concept that [Indiscernible] last year on the ability where we want to cause a major impact working together.

Everyone is an ecosystem, and this effect will be even greater. We have a [indiscernible] has been bringing excellent results with a positive [Indiscernible] the more community as a whole. I would like to reinforce that you like to maintain [Indiscernible] transparent and closer to the financial market analysis and everyone who are with us along our journey. And we will continue delivering consistent results to have a better company. Thank you, very much and we are available should you have any other questions.