Vasta Platform - Earnings Call - Q3 2020

Transcript

Speaker 0

Ladies and gentlemen, thank you for standing by, and welcome to the Vasta Platform Third Quarter twenty twenty Earnings Conference Call. At this time, all participants' lines are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Pedro Gomez.

Thank you and please go ahead, sir.

Speaker 1

Okay. Thank you very much and good morning everyone and thank you for joining us in this conference call to discuss Vastas platform's third quarter twenty twenty results. With me on the call today, we have Mario Gu, Vastas' CEO Klobbs Prozacci, our CFO Ilham Himalaga, Vaster's COO and Bruno Zargino, Cognos, IR Officer. During today's presentations, our executive will make forward looking statements. Forward looking statements generally related to future events or future financial or operating performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those contemplated by these forward looking statements.

Forward looking statements in this presentation include, but are not limited to, statements related to our business and financial performance, expectations for future periods, our expectations regarding our strategic product initiatives and the related benefits and our expectations regarding the markets. Our outlook statements are based on our management's beliefs and assumptions and on information currently available to our management. Today's risks include those set forth in the press release that we issued today as well as those more fully described in these filings with the Securities and Exchange Commission. The forward looking statements in this presentation are based on the information available to us and the date hereof. You should not rely on them as predictions of the future events.

We disclaim any obligations to update any forward looking statements except as required by law. In addition, management may refer to non IFRS financial measures on this call. The non IFRS financial measures are not intended to be considered in these relations or as a substitute for the results prepared in accordance with the IFRS. Let me now give the call over to Mario Gil to make his opening statement.

Speaker 2

Thank you all. I would like to start on Slide number five, where we present the main highlights of the 2020 sales cycle, which ended on September. It is always worth stressing that our business cycle does not coincide with the fiscal year, running instead from the '1 year until the third quarter of the following year. Thus, when we refer to 2020 sales cycle, we are talking about the cycle starting on the first quarter twenty nineteen and up to the result of this quarter. Among the main highlights of this sales cycle, we have the subscription revenue that showed a strong growth above 18%, even in a year as turbulent as 2020, where we had to cope with the impact of the pandemic and the migration of the on-site activities to the digital world.

Another highlight of this slide is the strong adjusted EBITDA performance that grew 41% due not only to the increase of the share of subscription revenues that has higher margins, but also the efficiency initiatives employed by the company leading to gain in the adjusted EBITDA margin of 4.1 percentage points in the year. Now I'll pass the floor to our CFO, Clovis Pogeti.

Speaker 3

Thank you, Gil. Hi, everyone. Moving to the next slide number six. As important as observing the results of the fiscal year, which presents strong seasonality between the quarters is to look at the sales cycle as a whole. Here, we can see all the growth that we were able to deliver in this sales cycle.

The net revenue was 16.5% higher than the one seen in 2019 sales cycle. And it is important to remember that this growth of 16.5% is the consolidated one, which means the combination of 18.4% growth in the subscription revenues with a growth of 12.7% in the non subscription revenue. On the other hand, gross profit increased by 21%, while the adjusted EBITDA was even better with an upturn of 41%. The net loss in turn had a significant improvement of 64% in the period, highlighting the solid performance we had in all indicators. Moving on to Slide seven, we also present the subscription revenue for 2020, but from a different perspective.

In addition to showing the 18% growth in the subscription revenue referred to on the previous slide, we also show a comparison with the annual contract value announced for 2020. The difference between the ACV and the subscription revenue is that ACV shows all contracts signed, which is a good indicator for the subscription revenue expected to be recognized in the following sales cycle. That is, it is based on a future perspective. In normal years, subscription revenue tends to behave very similarly to the announced ACV since contracts are signed and the ACV already considers churn, historical returns, price increase, cross sell, upsell and new clients. That's why it is the best proxy for subscription revenues we have.

In 2020, we had a disruptive event like the pandemic, but even with all the pressure brought by the pandemic, the impact on our revenue was only 3% in relation to our initial expectations, which reinforced all the soundness and resilience of our operation. This was only possible because we offer an extremely efficient digital platform for schools, managing to reduce the impact of the migration from classrooms classes to the digital environment and enabling the maintenance of the academic calendar. Notwithstanding the stability of the operation was so good in this period that we were able to deliver a subscription revenue of $92,000,006 very close to our initial expectation. The purpose of Slide number eight is just to reinforce the message that despite the different seasonality that we have within the quarters of the year, with a recognition of results more concentrated in the fourth and first quarters, the result recognition curve in 2020 is very similar to the one in 2019, which lead us to believe that keeping the current perspectives, there is no reason to believe in a curve for this year that would be pretty much different than the one we had last year, plusminus a couple of percentage points.

What we have seen until now in relation to our sales campaign for 2021 is that the result obtained so far is very sound with a strong pace of closing new contracts, which gives us confidence that the fourth quarter this year will continue with the expectation of another being another very strong one. On Slide nine, we present the main financial highlights of this quarter. And we can see that although the third quarter is still seasonally weak, we performed better than the same period in 2019 in all lines. This is clear both in the quarter's performance and in the accumulated nine months of the year. Regarding the number themselves, we can see that the accumulated revenue for the nine months reached $654,000,000 with a gross profit of approximately EUR376 million and EBITDA EUR138 million and a net loss of EUR68 million, well below the net loss of €101,000,000 in the same period last year.

Now I return the floor to Gil to continue with the final with his presentation.

Speaker 2

Thank you, Clavius. Going to the Slide 11, we can see the importance of having a strong and engaging digital platform such as Plural, which has been an essential pillar for the company to ensure the stability of its operation and growth for the following year. Since the beginning of the pandemic, Plural has registered more than 8,000,000 accumulated live classes with an average of 72,000 classes transmitted live per day. Currently, Plural accounts for about 50% of all educational web traffic on Brazilian private educational platforms, showing that it's not only a tool with high levels of engagement and satisfaction, but also an extremely important tool for schools. In this sense, Plural has been essential for partner schools to be able to continue with their school activities and have seen an increasing active participation of teachers and students.

The platform previously used as a didactic support for students gained a key role in the digital school as it was called the transition of classes from analog to virtual environment. And this has had an extremely positive effect on contracts renewals. But Plural has not only operated as a platform for retention and engagement, but also as an important hub to attract new schools. And we could observe throughout the commercial campaign that many students were left helpless during this year and we were unable to follow the school activities plan at the beginning of the school year. With this, we have been able for the first time to capture schools from historic competitors, which started to see Plural as a way to go through the next year without major problems, thus ensuring the sustainability of their businesses.

But our work is not restricted to support in the digital transformation in schools. We want to be more and more a full partner of the Brazilian private school. So I invite you all to move to the next slide. We are now developing a new concept for partner schools to further explore the offer of complementary solutions in a format similar to iTunes. This is the Plural Store, a marketplace for the sale of third party digital solutions with usually international solutions in a revenue share model exclusively for the Brazilian market.

Fully digital solutions are affordable and aligned with this new hybrid school, a model that requires low investment and ensures high return. And with the free trial model, we further believe that we'll be able to capture more and more the interest of the schools providing sustainable growth for this business. Therefore, there is no doubt that from now on complementary solutions will gain more and more materially in next business cycles. And this is why we are striving to add and bring even more options to our partners. But let's go to a little deeper to see what we are the solutions that we are already available on our new platform PluralStore.

On Slide 13, we presented And as I mentioned on the previous slide, we have international solutions with very strong reputation and brands. In the field of STEAM, we have three highly desired solutions, which are discovery education with a range of interactive materials and content of science, math and social studies, Matifici, which has been available on our platform since the beginning of the year with solutions of math games for early childhood education and Cloud Labs, which is a virtual environment that facilitates the experimentation and development of scientific skills. In the field of educational Olympics, we have now available our platform, Plurao Olimpico, which encourages children to participate and improve their performance in Education Olympics. In the field of financial education, we have TingDing, which is a super interesting platform for children financial education enabling them to learn financial concepts.

In the field of product, project methodology, partner with Dreamshaper, which is an online tool that guides the students to practical and motivating learning experiences and problem solving. Finally, in the field of languages, we offer the Carnegie Speech and GePetto two great solutions for the practice of English. Moving to the next slide. In addition to all these solutions, we are building a digital platform that will support the transition of the Brazilian school to this new concept of hybrid schools, which increasingly digital skills and activities. That is why we are making a series of investments in bringing neuroscience to improve the effectiveness and results of our solutions.

The headband that you can see in the image is extremely important for this because it can do the analysis of the brain in real time measuring the concentration level of each student and proposing a content more adapted to the students' attention levels. In other words, what we are proposing today for our partners in relation to the use of technology is not just Amer palliative to assist the schools in going through this difficult pandemic period, but a whole range of solutions that will help with the migration and disruption from the analog model, which is still very much rooted in the academic environment. Moving to the next slide. And for all this content to be delivered and used efficiently, it's essential that each student has their own study too. What we saw during the pandemic was that most families were not prepared to face a long period of social isolation and had in many cases to share the same computer with all its members.

That is why this partnership we made with Lenovo is extremely important for this new life we are leading today, as it allows to deliver the computers with all the academic content already integrated with no cost of acquisition or maintenance, facilitating family planning and children education. We already have 22 more than 20,000 students who have adhered to the learning book model and we believe that such number will only grow in the time ahead. Moving to the next slide. To end this part of the presentation, I would like to show how efficient is this platform model we were able to build, because the beauty of the platform concept is that the day after signing an additional service contract, you have the service available for sale to more than 4,000 partner schools that we have on our platform today. And this additional service can be added through the development of a solution by purchasing a solution or by partners as shown in the PluraO Store slides.

In some cases, it's more advantageous and strategic to purchase a product as we did at the beginning of the year with MindMakers, our robotics and coding solutions for children. The day after the contract was entered, MindMakers solution was already available for all of our farmers and hunters to make their sales and the result achieved in just one commercial cycle was extraordinary. In less than a year, we have already managed to increase the number of new contracts by 80 And we have more weeks to go in our commercial campaign evidencing the success of this strategy. Now I'll pass the floor to Guilherme Melegaros, our COO.

Speaker 4

Thank you, Gil. And to the end of this presentation, I would like to invite you all to see Slide 18. To date, we have already entered into a total of contracts that account for an ACV of EUR835 million for the 2021 sales cycle, which represents a 21% growth compared to the subscription revenue recorded in the 2020 sales cycle. If the comparison is made in relation to the 2020 ACV, that is for what we expected for this year before the impact of COVID-nineteen, the number already contracted for 2021 shows a growth of 17%. In other words, we already have a sound result regardless of the metric that is analyzed.

Considering the 21% ACV growth, 80% of this growth is from traditional learning systems and complementary solutions and 20% from par. But it's also important to mention that the commercial process only ends in late December, early January. And we are confident that this figure would increase till the end of the sales campaign. Now, heading back to

Speaker 2

Gil. Thanks, Malaga. Now, I'll finish our presentation and open the Q and A section. Thank you very much.

Speaker 0

Thank you. And our first question comes from the line of Roberto Atero with Bank of America. Your line is now open.

Speaker 5

Great. Hi, good morning guys. So two questions from my side. The first one is regarding the sales cycle. I wanted to understand how do you analyze the effectiveness of the more digital sales campaign in terms of leads conversion.

Is a very important change in the way the industry adds new contracts. So curious to understand how you think schools adapted to that. And in that sense, given the partial reopening of schools in Brazil, do you expect the coming weeks to be relevant in terms of new contracts for next year? And the second question is regarding the accounts receivable. We saw an increase in accounts receivable year over year in terms of amount and also days of receivables that I suspect are mostly related to renegotiations with existing schools given COVID.

But how do you expect this line next year to reflect the twenty twenty one sales campaign? So those are the questions. Thank you very much, guys.

Speaker 4

For your question, Antero. This is Malaga here. I will take the first one, then I will turn to Lovitz for the accounts receivable. Our sales cycle definitely was completely different from anyone before. Digital played a very, very important role, especially at the beginning of the cycle.

In the first semester, 100% of all the commercial initiatives were digital. And not only the approach was digital, but the offering was digital. We're offering boarding on our Plurau platform to help these schools. So I would say it was twice digital as it used to be. And that was very important at the beginning, and that's create a funnel, a sales funnel that now we are closing new contracts in the second half of the year.

And the next coming weeks, we are working already in a hybrid mode. We are having physical interactions with our schools. And this is actually speeding up the closings that were already on the pipeline. So we still have we are confident that the weeks ahead, we should still perform well on the sales campaign.

Speaker 3

Hi, Otero. With regards to the accounts receivable, you are correct, okay? The increase that you realize is directly related to the negotiations with the customers because of COVID, okay? That's why in terms of the average accounts receivable term comparing to previous year, you see an increase of twenty days, something like this, okay? For the next sales cycle, of course, with everything related to COVID going back to normal, we should go back to what we had in 2019.

One observation only, given the seasonality that we know regarding our business with the fourth quarter and in first quarter in terms of revenues much stronger, please don't forget that from October to March, we can say, the average term in terms of receivables goes up. And then from April to September, it goes down. So in a when you analyze in a sequential basis, we have these fluctuations, okay, but nothing that is already not expected.

Speaker 5

Great. No, that's And super if I may just a follow-up to the first question. Regarding the I mean, the changes and now the larger portfolio of complementary products, how are you designing the go to market strategy for the next sales cycle? I believe I suspect this probably should be more levered on cross sell. But given the number of products and the LTV of those products, just wondering how you're designing the go to market strategy for complementary exclusively?

Thank you very much, guys.

Speaker 4

Hi, Antero. Actually, we changed the go to market strategy on this sales campaign. We are already relying a lot on the complementary products. We have much more products this year than we have on the previous cycle. And part significant part of our ACV growth already comes from the complementary products that plays a very important role on the growth.

And we expect the next GTM campaign will be pretty much the same. We already tailored our GTM to focus on cross sell of these products on our base. So we have events for that. We have sales pitch for that. We have bundles for that.

And it's already customized up and running.

Speaker 2

Hi, Arturo. This is Gili speaking. I would like to add that with the Plural Store, besides the pushing initiatives we have to sell our complementary solutions, Plural Store is a way of pulling the demand from the schools, right? So after I agree with Malaga, but we are also trying to make this trial versions as a way to the school to use a new service, to like a new service and then pull this new service to the school.

Speaker 5

Excellent. Guys, this is super helpful. Thank you very much. Thank you.

Speaker 0

Our next question comes from the line of Diego Arago with Goldman Sachs. Your line is open.

Speaker 6

Yes. Good morning, everybody. Thank you for taking my question. The first question is more like a follow-up on Otero's question and related to your ACV bookings guidance. I understand that the schools have been somewhat delaying some of their decisions, given the very challenging environment related to the school reopening process, right?

And in the sense, can you give us a sense on the upside potential that we could expect in the case that some of those schools would get back to you, which, let's say, a kind of final decision only in the beginning of next year? And also any colors on the ACV growth performance for the learning system and PAR? I mean, what was the year on year growth in each one of those segments when compared to the 2020 ACV? Okay.

Speaker 4

Thank you, Diego. This is Meligan. Yes, what we saw, what we observed on this last campaign is definitely these schools were on a standstill mode regarding to core content. They were reluctant to make changes. So we and obviously, this has two impacts.

We have lower churn because of that, but we have a more difficult campaign regarding new clients also new schools also. We do expect more to come. We have several schools on our pipeline that we have been very close to reach an agreement with them. And we do expect some schools to make the last decision only in January, depending on their expectations about the physical classroom, how it will work or not. We still see some schools waiting to see.

This could be converted in contracts later on the process. So this is a completely new year in terms of sales campaign. And we cannot predict much about the last mile of it, although we have very lots of heated discussions in the pipeline. And more disclosure about what is within the ACV, we'll be able to give later on in the fourth quarter.

Speaker 2

Yes. Adding on that, Diego, I guess we are going to complement this ACV in the beginning of the next year, right? And we will show the breakdown of all the factors that combined are the ACV such as churn, cross sell, upsell and new contracts. Are planning to give the information with the fourth quarter release, okay?

Speaker 6

Okay. Sounds good. And I guess my second question is regarding your pipeline of new products. I know you mentioned a couple of new TFTs and products that were recently launched and are available for your customers. But can you comment about the main goals for 2021?

And if Anthony touched on also on your expectations for M and A with any? Thank you.

Speaker 2

Sure. Yes. As we shown here in this release, we already have a robust number of services and products to the beginning of the next go to market. But we are working in acquisitions in core education and also in complementary solutions, right? I can say that we are in an advanced steps with some of the players we are planning to acquire.

Actually, we are in a due diligence process with a few of them. And we believe that until the end of this year, we will be able to announce an acquisition in core education and a few acquisitions in complementary solutions, right? In complementary solutions especially, we are planning to acquire companies that will complement our technology in plural. So we need more technology in adaptive assessment. We need more technology in writing skills or essays, right?

So that's the kind of acquisition we are looking for at this moment, Diego.

Speaker 6

That's very helpful. Thank you very much. Thank you.

Speaker 0

And our next question comes from the line of Vinicius Ribeiro with UBS. Your line is now open.

Speaker 7

Yes. Hi, everyone. Good morning. Thanks for taking our question. Two actually from our side, both on the ACV.

And I'm sorry for being repetitive. So first of would like to understand if this twenty one percent increase already accounts for the recovery of the COVID-nineteen dropouts, to speak, you showed during 2020? And the second would be on the competitive scenario, we understand that this shift to this new kind of go to market with a more virtual aspect. Does it did you guys see any change when it comes to the competition in terms of prices? Or do you attribute this positive result to a more greater more efficient execution from your end on the conversion of the leads?

That'll be it. Thanks guys.

Speaker 8

Hi,

Speaker 4

Vinicius. This is Melaga here. Going to your first question, the 21% does account for the dropout last year. We do not expect the pre K and K students remain without an enrollment for two school years. So we do account for that on the 21%.

Regarding your second question about the virtual execution and how it changes. I think we were really happy to have Plural because Plural leverage a lot our sales. We're selling a digital products through digital inside sales channel that helped us a lot to bring schools to the sales funnel. But I wouldn't say that that per se closed contracts. What closed contracts is that once we are serving the school, we can get more closer to the school, either in terms of sales, but also pedagogically speaking, and then we convert the school.

So it's still hybrid conversion in terms of contracts. And I agree with you. I think we had a good execution because first, because we have Plurals to offer secondly, because we have an inside sales already working digitally for the last three years. So I think this gave us some leverage or some ground speed on the very beginning. And later on, on the process, the engagement and the cross sell, I think made the rest.

And we are still waiting for the final results in the upcoming weeks.

Speaker 2

Hi, Vinicius. This is Gil. Adding a little bit here, I guess, the way we are bringing new services to our portfolio is also important to the school in this next period, right? We have, for instance, in English, we have English Stars, which is a premium product aiming a school with serving high end, high income families, but we are also bringing to our portfolio more digital solutions that are more aligned with this new hybrid moment, hybrid period to the schools. And also because the target price of those products are lower than the traditional products.

So we are really confident that we have a robust portfolio, not only because the quality of the services are super important, but also because they are more digital than were in the past. And the target prices are more affordable for the period the families are facing here in Brazil.

Speaker 7

Great. Thanks for the answers guys.

Speaker 0

Thank you. And our last question comes from the line of Marco Spinaud with Neuberger Berman. Your line is now open. Hey,

Speaker 8

guys. Thanks for the call. Just in terms of the what you're seeing in terms of student enrollment kind of on a like for like basis at the schools as you look to next year. I'm just curious for a given school have they seen I know they saw dropouts kind of at the kindergarten level, but any comments you can give on our schools seeing a 5% drop in the upper grades, 10%, nothing increase, just to see what's happening at the individual school level, and how that's impacting and if to what extent that's a driver of this increase in accounts receivable?

Speaker 4

Hi, Marco. This is Guilherme here. Let me give you what we have heard from our partner schools. Definitely in 2020, they faced the dropouts for especially Pre K and K at Q2 and Q3. They do the majority of them do expect that those enrollments will return.

We are right now on the enrollment season. So I would say no school right now knows 100% their school the student base for next year. They are right in the middle of the process. They normally start late October. So we are very early on this stage.

But what I can share with you is their sensation, their sensation that the schools are getting back, they are calling back the schools, They are very positive for the next year. Moreover, we had another positive trend that we see. We had several places where the public education was not as bad as the regular public education in Brazil. And many of the medium class parents, they have their kids on public schools. But the service on the public school during the pandemic was terrible.

Pretty much nobody could deliver any service. So some of our partners are reporting, they are gaining students from the public sites, from the public schools. But right now, don't have figures. It's very early on the stage, but we are seeing a positive trend here in Brazil due to the expectations of our partner schools.

Speaker 8

Okay. Thanks. And do you have any I know it's extremely early, but what impact if any do you think a vaccine to the extent that it's available in Brazil kind of in widespread manner toward the second quarter of next year. Any thoughts on how that might impact your business, if at all?

Speaker 4

Marco, we are still waiting to see when the vaccine actually will be widespread here in Brazil. I would say our scenario right now is that these schools will remain hybrid. I would anticipate more here the expectations of a second wave rather than COVID vaccine. So I would say schools are more prepared to remain on the current trends they are. Some are hybrid, some are 100% digital.

But the second wave is still uncertain here. And I would say the schools are really partnering with strong service providers to be able to face whatever is yet to come. And if the vaccine comes, it will be great for everybody. And we strongly believe the digital services will keep on because there are some changes that are cultural changes. And we believe there is a digitalization for K-twelve, not only in Brazil, but worldwide, but will be great for our business and for the country and for everybody to get rid of the COVID-nineteen.

Marco.

Speaker 2

This is Gili speaking. Great talking to you. I guess this is super important. We see that the next year we have we are the best well positioned we are very well positioned to face the new year, not only because we have our products and our services for the full reopening of the school, but also because we can provide our services and products to the schools, if they are closed, if they are partially open or if they are completely open, right? I guess the most important step we did at the end of this year was creating all these new opportunities for the school to teach English in a digital with a digital services such as Carnegie.

And I guess we are very well positioned to face what is going to be the next year. Personally, I believe the vaccine only will be available in Brazil in the second semester of the next year, right? So having said that, I guess we are best positioned than any other player to face 2021.

Speaker 8

Okay, great. Thank you. Thank

Speaker 0

you. And our next question comes from the line of Susana Salaou with Citi. Your line is now open.

Speaker 9

Hi, guys. Thank you for taking our question. We have two. The first one is relating to price dynamic. You could just elaborate on the renewal the schools, how was the dynamic of increasing prices if SASSA was able to make the pass through above inflation that it usually does?

That will be our first question. And the second question is related to the M and A competitive space. It's not only that that's going after the some solutions, digital solutions and complementary content. So just was wondering if the target that Avast is going after, Avast is the sole bidder or if there is some kind of competitive process going on? Thank you.

Speaker 4

Hi, Susana. This is Guilherme here. Thanks for your question. I will take your pricing question and you will take the M and A question. Regarding prices, yes, we were able to pass pricing above inflation as we normally do.

So in this fashion was a regular year. We priced our products, especially with Plural, a little bit above inflation. But another important effect in terms of average ticket is that we had a positive mix, if I can say that. We have new products in Anglo and PH for the high school. So we have the new high school and more than 50% of our school base adopted the new products.

And this has also price increase embedded in this new mix. And as Gil presented, we also have the learning book impact effect, which enhances our mix. We have much higher prices for the learning book, although it's only 20,000 students so far, it's at much higher price. So when you combine pricing per se plus the positive mix impact, I would say we have a very sound price mix increase for next year.

Speaker 2

Susana, could you repeat please your second question?

Speaker 9

It's related to the M and A target. If Basel is the sole buyer for the target or if there's a competitive process going on in any of the targets that you are pursuing?

Speaker 2

Yes. Well, are when we talk about acquisitions, we must remember that we are doing two kinds of acquisitions, right? The first one is trying to buy players in the core education, okay? And we have a target that we are in the due diligence period. This specific target we are studying now, there is a complementary footprint compared to ours.

And also, we believe that is an excellent brand, an excellent reputation, right? In the complementary solutions, we are planning to acquire or the kind of acquisition we are planning to do, it's now it's the acquisitions that will bring a new dimension in terms of technology, right? With PluralStore and also with all the complementary services we already have in our portfolio, we believe that we are very well positioned to offer to the partner schools everything they need in the next year. But we know that we have some gaps in terms of technology. And to fulfill these gaps, we are looking for these acquisitions in complementary solutions, okay?

And again, we are in a divested steps with some of them. And I guess in the next three weeks or at most at the end of this year, we will announce a few acquisitions also in complementary solutions.

Speaker 9

Great. Thank you. Thank you very much.

Speaker 0

Thank you.

Speaker 5

I'm not

Speaker 0

showing any further questions on the phone lines. So I will now turn the call back to Pedro Gomez for any closing remarks.

Speaker 1

Well, would like to thank for everyone for participating on this call and I'll put myself available for any follow-up questions. Thank you and have a good day. Bye bye.

Speaker 0

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.