CVC Limited

Good afternoon and thank you for standing by. Welcome to the CVC conference call to comment the first quarter of 2021 results. With us today, we have Mr. Lionel Andrade, CEO, and Mr. Mauricio Montilla, Chief Financial and Investor Relations Officer. We would like to inform you that this event is being recorded and all participants will only be on listening mode during the presentation by CVC Corp executives. Once the initial presentation is finished, we will start the Q&A session when new instructions will be provided. Should any of you need assistance during this call, please press star zero to reach an operator. This event is also being broadcast simultaneously over the internet via webcast and can be accessed at www.cvc.com.br where all participants will be able to control the selection of slides, which are also available for download. The replay of this event will be available shortly after its conclusion. Before proceeding, it is worth bearing in mind that today's event may contain certain forward-looking statements that may be made during this event relating to CVC Corp's business prospects, projections, operational and financial goals, and are currently expectations and assumptions of the company's management, as well as information on the business and economic context currently available to CVC Corp. Therefore, Consideration about future events and estimates are not a guarantee of performance and involve risks, uncertainties, and assumptions as they refer to future events and therefore depend on circumstances that may or not occur. Investors and analysts should understand that general conditions, industry conditions, and other operating factors may affect CVC Corp's future results and may lead to results that differ materially from those expressed in such future conditions. I now turn over to Mr. Leonel Andrade, CEO, who will begin the presentation. Please, Mr. Andrade, you have the floor. Good afternoon, everyone. I thank you all for being here with us today. I'm going to talk a little bit about the business in this first quarter, and then I turn over to my colleague, Mauricio Montilla. And then at the end, I will be 100% open to answer eventual questions. I'd like to start my presentation by highlighting slide number four, just to remind you At the end of last year, we talked about strategies, and we included three strategic pillars for the company, governance, sustainability, and innovation. I'd like to highlight that everything is going as expected. And also, according to the focus we've been giving, I would like to say that this is a year that from now on, So we've been with the company for one year. In the first year, our focus was on regulations and have the company on survival mode, avoiding issues, adjusting, correcting controls. But now the company... is looking at the future in a different way based on the modernization of the company. And we will talk a little bit about this. I would like to say that CVC Corp. will be transformed into a totally modern company. And above all, in the way we look and treat our clients. Within this context, I'd like to say that all of the businesses that were planned to take place Even though the first quarter was very challenging, these businesses will take place and all of our investments stand as planned. The first quarter was very harsh. We gave some steps backwards in terms of sales. At the end of last year, we had a strong performance with the second wave of the pandemic here in Brazil, which was, in fact, very severe. We had to give a few steps back in sales, but it did not mean that the quarter was lost. Quite the other way around, it helped show us that a lot of the new practices, especially from a cultural point of view, are working out. I would like to mention the priority we've given to our marketing management. In slide five, I will quickly talk about some initiatives, some strategic initiatives. The first one is VHC. We have concluded our operational agreement with VHC, and the company has been integrated to our day-to-day. In this quarter, we opened 150 new properties. We closed the month of March and the quarter with 352 properties I'd like to remind you that our strategic plan is to take this company to 8,000 properties. This massive expansion will continue, and in the next quarter, we will add another 150, reaching 500 in the near future. I'd like to remind you that this is the only business in worldwide tourism that was benefited by the pandemic. It is the only business, tourism, that has grown. We have seen this on a daily basis, and today we have a very competitive company with a high return rate and also a lot of expertise in this area, and we will continue growing. The rewards program is 100% committed and ready to take place. We are finalizing the choice of our technology platform for the program. We have already mapped and defined all of the different steps. We have concluded the brand definition and have also discussed strategic alliances We have an agreement with Itaú, and I'd like to remind you that Itaú has the largest card program. The card was launched. It was delayed for one month because of the pandemic. All stores were closed because of social distancing. But they are now all open. And so instead of launching the card in April, we launched it in May. and are selling full steam in all of our stores. The rewards program is strong. Throughout the year, we're going to have a lot of new things. Next year will be the year for massive expansion of our rewards program. It is essential to us because of recurrence. CVC Corp never counted on any client recurrence system, be it a reward program or be it a relationship with the end consumer. And I will talk a lot about this later on. Historically, we were the company who helped Brazilians travel for the first time ever, but we had never had a reward program before. Thematic marketplace. We have defined the three niches to launch the platform. We are going to start with the 60 plus, ecotourism, and wealthy. The 60 plus is the audience which will start traveling again, and they have a high capacity of consumption, first of all, because of vaccination. Ecotourism is today very important. We'll have a marketplace working in different segments with a lot of diversity. We're going to start with these three niches. We have already concluded the customer experience. And before talking about evolution, I would like to talk about CBC's network. I am confident that we're going to be the company of human contact and digital contact. We're the only company that will have human contact and digital contact available in there for customers. Our network is our priority. We have already defined different modernization aspects. First of all, we have a clear policy that at our stores, we're no longer having paper. It means that the stores will be more and more digitalized. And in this regard, all of the products are based on communication and QR code. Our clients leave our stores with 100% of their budgets and transactions available, and they can conclude distance transactions in their cell phone. All of the content is ready to work with iPads, eBook. Any client can take our content home and have an interaction a distance interaction with the store. From now on, all of the stores have video calls. Our digital footprint is getting bigger, now including credit card, remote credit card purchases. In June, in the first week, we're going to have a large convention with all of our franchises. And definitely, We will have the CVC of the future store, which will be implemented as of this year. All of the design of the customer experience with a lot of integration. A lot of experience in the stores with content. The stores are going to be 100% digital. This year, we will have different stores with this format. And in the June convention, we're going to announce the whole new design. of our brand, which will display this reality we're talking about here. And of course, the company is celebrating 48 years of existence this month. And we cannot forget that we are the most reliable and traditional company in this sector, which is undergoing a modernization process. Our stores will remain a competitive differential. In terms of evolution, We are proud to have launched this partnership with IUPP Itaú. We have launched all of the new retail banks in Brazil and Argentina. We are now partners of Livelo, Brasil, Bradesco, Espera, Santander. We're exclusive with that. And we are now the official Itaú partner. Everything is going really well. In Argentina, we also have a partnership with Santander and Alessio Banks, which are giants in that country. With that, we are almost exclusive to the bank sector in Brazil and Argentina. We have also launched our online circuits. They have very high margins, the circuits in Europe, and the circuit means closed travels where people start with a guide, an assistant, Throughout their travel, the product is already available online. Whatever was sold physically can now be purchased online. We have migrated our new app to the Flutter platform. We have had an upgrade. Our app will evolve a lot in the upcoming months, starting with content and also dealing with loyalty. All of our products will be available in our app. There is a minor error here. 14 million of contacted clients. There is a typing error here. We started from scratch, are going to have 14 million clients, clients that we have distance relationships that we can contact by means of email, SMS, web push, 100% digital and distant contact. This has grown a lot and we are now directing all of our communication this way. I'm going to give you an important example. In 2021, we're going to invest in marketing and publicity the same amount that we invested in 2019. But in 2019, we spent 85% of our investment in communication. In other words, marketing on television, radio, and newspapers. This year, we're going to spend over 70% of our investment in communication, in digital marketing and performance communication. This is a significant upgrade. We now have the clients, and we'll probably conclude the year with 24 to 25 million clients. And next year, we're going to continue growing until we have 40 million Brazilian clients in our digital relationship. We also started an MBA in-company. I highlight this because it is part of our digital transformation process. We have 15 employees. It is meant for digital transformation. We are investing. We have 50 leaderships in our company working with this consistent activity in different fronts. And, of course, culture and development is essential. We're not going to have a digital department of digital products. or anything like that, we're going to have a 100% digital company with human contact. In the next slide, we have the preparation for recovery. We're very confident that Brazil is going to reach 70 to 80% of its population vaccinated by October this year. I'd like to highlight that today we have reached 20% in Brazil, but everybody expects that for June, July, August, and September, this is accelerated. And in being so, I'd like to highlight that by September and October, we will have higher immunization rates than the United States today. If we look at the United States today, they are investing heavily on the resumption of their activities, all of the hotels, all of the attractions, entertainment, everything going back to normal. The U.S. already expects to have an exuberant summer in terms of tourism. This is what I expect, and this is what we're planning for here in Brazil. We must be prepared, and we have anticipated our activities in different fronts. I mentioned, for example, that we have the Brazilian cruise season for next year. Our blocks and frights are very strong for the upcoming months and the summer. We have an exclusive agreement for Rock in Rio next year, and this is just to talk about some local initiatives. Internationally, we believe that that by mid-next year, international tourism will be strong again. We are already selling and will invest on publicity in the next weeks. We are already selling for the World Cup. We have an agreement of packages and we are the only operator that has sales for physical persons, retail for the World Cup. We are the authorized operator for Expo Jube, which will take place at the end of the year. In other words, all of these are going to be materialized. We believe it will happen. I am almost optimistic in this regard. When I took over in the company, I was considered to be the most pessimistic in the market, and today I am perhaps one of the most optimistic ones because of everything that we can see that is already taking place. And now moving on to slide number seven, I'd like to say our sales and boarding in Brazil were lower than they were in the fourth quarter last year. This resumption. has been consistent in the last few days. May is much stronger. In June, I am convinced it is going to be even better, and therefore it's very likely that we will start growing right now. What makes me proud the most in this slide is how our take rate has gone up. This is consistent. We closed at 12%. In the last quarter, we continue growing when compared to the fourth quarter. And, of course, the improvement when compared to the first quarter last year is huge. The stake rate already reflects the new company's policy. Internally, I always say that our incentives reflect this. I would rather sell eight charging ten than selling ten and charging for eight. And therefore... The margin is more important than the growth, even though growth is very important. We will remain as market leaders, but we will maintain a margin at all times. It is the result of our new relationship with our customers, incentive policies, and dynamic pricing becoming more and more strong at the company level. We are bringing in new science to the company. And then in slide number nine, I'd like to highlight that on the column to the right, even though we have sold less than we did in the previous quarter, our income was higher. And this is the reflect of the take rate. And you can see that this is the fourth quarter with higher revenue, both domestic and international. And even with all of the impact of the second wave of COVID we had, even so, we have boarded over 1,600,000 passengers, demonstrating our capacity to distribute, board, and have our clients traveling. I now turn over to Montilia. I will come back at the end for the Q&A session. Montilia, please. Thank you, Lionel. Good afternoon, everyone. It is a pleasure to be here with you. I will start on chart number 10, talking a little bit about CVC Corp. As Leonel mentioned, despite the incentivization of the second wave of the pandemic in the beginning of this year with the increase of restrictions, which have affected travel plans, In our bookings, we were able to have a positive evolution in revenue with a reduction of boardings, but better revenues than we had last year, especially because we are focusing on the quality of sales, on the mix. The domestic mix is a little bit better, and it helps us with this progression. Another evolution that we're happy to witness is that Once we have maintained our revenue, we have been able to convert our EBITDA at a faster rate. And, of course, we are far from the volume that is required for us to have a positive EBITDA, but we are confident. It is important to highlight what Lionel mentioned about the take rate and sustainability. It's very important to have better sales for our future. And then moving on to the next chart, talking about the financial health of the company. We remain very confident in our capacity to resume businesses. We have a healthy cash in the company. As communicated to the market earlier, we are going to have new captures by the end of September. This will be done for us to pay our debentures at the end of the year and in early 2022. So in fact, we are very confident that we will have the capacity to lead our resumption to start selling again once the company will have less debt And that is combined to the fact that we can anticipate our receivables. We continue investing on digital transformation, including CAPEX and OPEX. Lionel talked about some important deliveries that we have started making. These deliveries combine to the quality of sales, make us very confident that we are taking the right track in the transformation of the company. In the next chart, we will talk about working capital evolution. Of course, we're still at a very typical condition in terms of the working capital of the company. In general and under normal volumes, the working capital was positive. We had more receivables than payables. With the delay of travels and boarding, we have some debt with our clients and therefore our working capital is a bit distorted. It will go back to normal once our commercial structure of credit offers, which is still similar to what we had in the past. But it's important to mention here that Even though we have had some delays, especially in terms of boarding, we are still very strong, proactively talking to our clients. We offer credits for future use. And in some cases, we offer vouchers directly with airline companies so that we can reschedule their travels. Another important focus on boarding. It has been challenging because of the second wave of the pandemic. We had a decrease in the airline mesh. It made it difficult for us to readjust boardings, but we remain confident, are working hard to provide good care to our customers, and we have been quite successful in specific cases where we cannot meet their needs immediately. We continue canceling and reimbursing, but this is not at high amounts. We're totally supporting our clients. We have been successful in guaranteeing that their travels will be maintained for future use. Talking about our financial health in the next chart, as I mentioned in the beginning, in the cash flow, we have... In debtness, we are renegotiating our capital with payments anticipated for the first quarter of 2021 and first quarter of 2022. The company will have a gross debt, which is minor. Debt gives us a lot of flexibility to fund any growth or eventual strategies that we have in the future. Another important aspect we discussed last year as the covenants of our debts have been readjusted to conditions that are aligned with the resumption process. We are confident that the renegotiation has provided us an ability to grow and lead our resumption. This is very important for our future. Talking a little bit more about Brazil, In slide number 15, we have already discussed this. The evolution of business in Brazil has been stronger than that we have in other markets. We'll talk about Argentina soon, especially because of the domestic travel. We also have improvements in the trends for profitability because of the reasons we discussed before, dynamic pricing, focusing on the quality of sales and on the mix. That's very relevant for all of us. We will see on page 16 that our businesses in Brazil have more or less the same type of behavior. And, of course, our B2B has suffered a little bit more than B2C right now because there was a more relevant international travel component, but we are still at very low levels. Even so, we have had an evolution, and this is cross-boarding. We have evolved positively in all of our businesses. We are improving our profitability despite a very difficult moment right now, as we had in the first quarter. And now we will talk a little bit about where we are investing our money. We have pursued operational efficiency, especially synergism between different businesses, shared services. unification of suppliers in our contracts. This is doing really well. We have an impact on expenses and margin. These efficiencies have been reinvested, as mentioned before. We have worked strongly in IT. We are trying to improve the operational aspect. Also, the support to our initiatives in the area of clients especially CRM, dynamic pricing. This is all essential. We continue investing on governance, operations, finances. This is important to make sure that we do not have surprises in the future. And therefore, we're very happy that all of these processes are improving. fast but this is something for the midterms we will have benefits in terms of operational efficiency that will be observed from 2022 on talking about quality sales and then we have a final comment about brazil in our own financing which is very specific to brazil we have closed this quarter with basically 42% of the sales. 4% was done by our own funding, a little bit lower than our past average in the first quarter of 2020. We had 11% of our own financing, and then six in the fourth quarter, and now 4%. These reductions, of course, have some market aspect, but it's also due to the fact that with implementation of new tools, we're focusing a little bit more on the quality of sales, and we have also created more adequate credit conditions. This is doing really well, actually. And when you look on the first graph, you can see default payments within the month. It decreased a little bit in March. In April, it went back to normal. We only had some very specific cases. Some cases of remarkation and then payment is pushed forward. But the trend remains extremely positive. We're very confident that all of these changes will continue helping the company to have healthy sales with positive margins. My last comments are seen on page 20 about Argentina. We can see that there has been some progress, even though in the first quarter in Argentina, we had a greater impact, especially because of the restrictions in Argentina, both in terms of the reduction of domestic and international flights because of the second wave of COVID that significantly decreased boarding. And then there was a decrease in profitability resulting from less boarding. And things become slower because of local and legal restrictions in terms of operational synergism. Having said that, I turn back to the operator so that we can start our Q&A. Ladies and gentlemen, we are now going to start our Q&A session to ask a question. please press star 1. To review the question from the list, please press star 2.

Our first question is from Joseph Giordano from JP Morgan Bank.

Good afternoon, Leonel, Montilia. Thank you very much for accepting my question and congratulations for the consistent improvements. I'd like to ask three things. The first one has to do with what Lionel commented. We will have a recovery in growth in the second quarter. I'd like to better understand how this works between B2B and B2C. And of course, now that I will start my second question regarding the takeaway, we can see an evolution in B2C, we reached 8% in B2B, but I'd like to understand how you see it within this new pricing model, what the difference is between a domestic package with air flight and an international package, just for us to have an idea of the take rate difference. at the time of resumption because it seems to me that the takeaway goes up initially and then it normalizes at a lower level. I would like to better understand what the take rate will be in three or four quarters. Thank you very much for your questions. From the point of view of growth, the second quarter is going to be very challenging in terms of boarding. There will be pressure, of course. In April, still had everything closed. We are resuming now in May. But sales have started. In May, in the last couple of weeks, we have seen strong sales. I would say that we are talking about B2C and B2B. Perhaps our best month of the year. compared to last year June is going to be very strong as well a lot of people are planning for the July vacation and they are buying for the end of the year as well because it's worthwhile and the prices are still very good from the take rate point of view and of course We expect that as of September, we will have an explosion in sales for the end of the year. September, October, November will definitely be the period where we will have by far the best sales. The current take rate seems to be sustainable in the next quarters. We will have minor variations. Internationals start growing. The take rate for international travel is lower, but greater than our historic average. I am totally available to help with future modeling. This requires further studies, but one essential thing here is that the take rate is not an opportunity. We are at this level because we had one transaction or because the pandemic brought one or another opportunity. We have this level of take rate because everything has changed in the company. We have changed our policy, the way we incentive people. We have changed especially the way we apply pricing. We started our new pricing with what is more profitable, for example, freight. We are already following a strong pricing policy. and with risks. We're now going to start with hotels. By the end of next year, 100% of the company will have dynamic pricing and algorithm pricing. The idea for us at the end of the day is that each client will have different prices, but the take rate is here to stay at a higher level. Of course, I do not have a lot of controls on the market in the long run, but when we look at the next four quarters, we think that the stake rate is quite sustainable, as it is now. I hope I have answered your question, Joseph, and thank you very much once again. Perfect. It has helped a lot. Thank you very much. The next question. It's from João Paulo Andrade Bradesco. Good afternoon, everyone. Congratulations for the results, Leonel. I wanted to ask about the thematic marketplace. How do you see the potential of this initiative in the long term? Thank you very much. Thank you, João. Thank you for your feedback. It is soon to congratulate us. We have a long way to go. but I hope that we will deserve these compliments in terms of sustainability and profitability of the business. Regarding the marketplace, first aspect, this market is huge. This market has never had scale. There are numerous... different actions in Brazil and worldwide. We have small and large companies focusing on tourism for the best age or health tourism. But we've never had any company that combined everything to generate scale and high capacity of distribution and reliability. And this is what we can provide to this business. And now with the decision of our three initial pillars, the marketplace has an enormous potential. It is not going to be exclusively a thematic business. It will be linked to our reward program, generating business. For example, we, CBC Corp., have included hundreds of businesses thousands of travelers in Fortaleza, just to give you an example, every year. And therefore, our capacity to take clients and influence clients as we know them and as they are 100% connected with us during their travel by means of the app, our capacity to influence these clients to a local thematic program, a park, a restaurant, and so on and so forth, is very high. These clients can win more points in our reward program, for example. Of course, these points are paid for and encouraged by our partners. Our marketplace is not going to be passive. It's going to be 100% active in terms of directioning what we do, but we have segmented products. with competitive price. We are investing in our platform. This platform will be available in the future months. The marketplace may represent something as 10% of the size of the company in terms of volume and editor. This is a plan This is something for 2025 and the long run, five years from now. It's not a support product. It will be a business in itself. Clients will be able to use it digitally, and it will generate business for all of the contacts and physical sales in our stores and our partners. I am available.

I thank you for your attention, and I hope I have answered your question.

The next question is from Eric Wank from Eleven Financial. Good afternoon. Thank you for accepting my question. I have two questions. First of all, I wanted to understand if you have any update on travel agencies. And also, since you talked about marketing expenses for the year, could you give us some details of other expenses for this year with all of the initiatives that you're planning? What can we expect in terms of expenses for the rest of the year? Thank you very much. Thank you very much. First of all, Autonomous agents or brokers, this is the only aspect I didn't touch upon. When we talked about the launch on our investor day about these autonomous brokers, I said it was going to be the last initiative of the year because it requires other activities that we cannot make available in the short term. These autonomous brokers will remain. They have already been mapped in terms of technology, but we haven't started yet. I think it will only be available early next year because of prioritization and availability of things that we have to carry out. The novelty here is that these autonomous brokers will be a platform that to be made available both for B2B and B2C. Autonomous brokers will be available for our franchises to operate by means of their stores. They will be able to develop it, and this has increased our potential for the distribution and this capacity to move the company from the physical point of view, reaching our clients anywhere with assistance. I apologize. because I cannot tell you anything now. But in the next call, we'll be ready to talk about this. In terms of marketing expenses, I'm sorry, companies' expenses, not marketing only. This year, we are investing 130 million BRLs in technology and clients. Client means the development of the CRM platform.

adding dynamic pricing platform.

We will conclude the year with 24 to 25 million clients. This requires a lot of investment, as well as investment in technology. We haven't stopped. We have the support of our shareholders to continue developing our digital platform. We call it the MAP project internally in the company. This investment, even though it is very high, a large part of it is considered as OPEX. It has not led to an increase in the expenses of the company. We have a series of savings that are not seen today because they are mixed here. This year, we do not have any pressure with expenses in the company regarding the first quarter trends. Early next year, as Montilia said, we will start having our returns. We have invested strongly in the developing new modeling of integration and back office automation of internal processes. which will lead to significant cost reduction later on. Perhaps the main year for us to see cost reduction will be 2023. In 2022, we still have a lot of investments to make. Our projects, especially the MAPA project, will be concluded at the end of 2022 when the company will have captured all of its efficiency in terms of technology. Of course, the technology is something that we have to take care of for the rest of our lives. But what we're investing in right now will be concluded at the end of 2022. I hope I have answered your question, and I thank you very much. Ladies and gentlemen, once again, if you want to ask questions, press star 1. The next question is from Fernando Queitiando from Porto Seguro Investments. I'd like to have an update on the additional capitalization by September 2021 of $440 million as arranged for 2020. Has this process evolved? This question will be answered by Montilha. Montilia, please. This is an excellent question. As I commented before, this capitalization is anticipated for the end of September. When we negotiated, we announced Citibank as the leading bank in this process.

But we are still with an ongoing project It is planned and should take place as agreed upon before.

We are discussing with the union leaders and are working on it. It will take place on September 30 probably. The market conditions are favorable. And therefore, for the time being, we're very optimistic about it. The next question is from Rodrigo Mota from GLPG Capital. Could you give us an update on the process of new liquidity events happening?

I will continue with this answer.

The original capitalization has been planned. The company will always evaluate the market at different time points. For the mid and long term, we will try to have a mix. As I commented, the gross debt of the company has been considerably decreased because of the processes we had late last year and early this year. This gives us a lot of possibilities. We will have some remaining debts in the long run, and we will always evaluate the market and specific opportunities so that we can become more efficient. Right now, we don't have a plan, but it's something that we are considering. And as I mentioned before, we have a lot of opportunities to fund this because of the resumption of businesses and good perspectives.

We have a reduction of our gross debt as well. The next question is from Joel Andrade Bradesco.

Thank you for taking another question. The new store model is interesting and I wanted to better understand it. Could you tell me a little bit more about it, about the magnitude of investment and timing so that we can better understand it? Thank you.

Joel. Thank you for the question. We're going to have a better answer for you and the market in early June.

That's when we're going to launch this model in the convention to all of our franchises. I can tell you that the new store model has been designed and anticipates a strong transformation of the experience. I will give you a simple example. Today, all of our stores, I will exchange the paper window. If I close an agreement today with a new airline for a new product, this won't reach the windows. And we do not have any interaction with the clients in their travel experience. They don't have a video. They don't have a totem. At the end of the day, they do not have any interaction. Our stores, regardless of the platform, have a strong paperwork interaction. This will be over. Stores will have an electronic window with a centralized command. And we, within minutes, can change the whole windows for all of Brazil. The stores will be very modern. and have a capacity for the consumer experience. Travel usually starts before purchase, and the purchase process is based on it. Our problem is not having stores quite the other way around. The stores are a competitive advantage, but it's important that they are efficient instead of being high-cost and non-sustainable. The idea, of course, is that we are now going through a moment of cash contingency. We won't be able to transform our network within a few months. It will take 12 to 24 months. But the idea is to start this year and we will disseminate and have models that are accessible this year with new stores. And Perhaps I'm not being very specific, and I apologize for that. It's not fair that I launch or provide additional details before my franchises, which are priority number one. All details have not been decided upon yet, but we are totally going to review our distribution model with an upgrade in terms of modernity. It's amazing, really. Thank you, Joelle.

Perfect. Thank you, Lionel. Ladies and gentlemen, to ask a question, press star 1. We're now ending the Q&A session.

I would like to give the floor back to Mr. Andrade for his final remarks. Mr. Andrade, please take over. First of all, I would like to thank you all for your attention. I'd like to quickly reinforce some aspects. We are going through a new moment for the company. In the first year of my mandate, we made adjustments whose main objective was to recover the credibility of the company. Thanks to your support and to the support of the market, we were able to evolve in this regard. All of the stakeholders, starting with our employees, shareholders, strategic partners, marketing, trading, airline companies, hotels, hotels networks, service providers, are much more confident about our future. And now, as I mentioned, we're going through a new phase. We are transforming our company based on modernity and science. This month is the company's anniversary. The company will celebrate 49 years at the end of May. We will now start celebrating the 50th anniversary of the company. We're living this crisis much stronger than when we were when we started. I would like to invite you for the new sustainability program that will be launched next week. A strong sustainability program, the first one in Brazilian tourism. That's when we celebrate the company's anniversary. Another essential aspect is that we're very careful regarding our focus on our profitability, as you've seen. This is our number one priority. We have strong margins. They are sustainable. Our competitiveness has increased. We are going to be the company of human and digital contact, probably the only company that will merge the two things. We have a team that is totally committed to this. We are investing in the transformation towards digital culture. It doesn't mean having apps available only. It's a long-term project, focuses on recruiting, change of culture with the right incentives. We will transform our culture so that we can really be a better company. And then on the other hand, I'm confident that the end of the year will be very gratifying with life going back to normal. CVC Corp., the only company that did not dismantle its operations, is totally competitive and will resume growth in Brazil and in Latin America with a strong focus on Argentina as well. I thank you all for your attention, for your support, and also for your support on our day-to-day. Myself and Mauricio Montilla are available to answer any questions you may have. I wish you a wonderful week and thank you very much. CVC Corp Results Conference Call is concluded. We thank you all for your participation, wish you a good afternoon, and thank you for choosing Chorus Call.