CVC Limited

good afternoon everyone and thank you for standing by welcome to the cbc core conference call to release results for the third quarter and nine months of 2022 with us today we have mr leonel andrade the company ceo mr marcelo coppel cfo and investor relations officer and mr bruno brazil financial planning, and IR director. As a reminder, we would like to inform you that this event is being recorded and that all participants will be in listen-only mode during the company presentation. Ensuing this, there will be a question and answer session when further instructions will be provided. Should any participant require 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 may be accessed at www.cbc.com.br.ir. Through the webcast, you can download the slides and flip the slides at your own convenience. The replay of this event will be available shortly after the conclusion. Before proceeding, please bear in mind that today's events may contain certain forward-looking statements which will be made regarding CBC Corp's business projects, projections, and others. These are based on the company management expectation. Investors and analysts should understand that overall conditions, sectoral and operational conditions may impact the future results of CVC core and lead to results that differ materially from those expressed in the presentation. Attaining these results is a result of the environment of risks and uncertainties in which CVC Corp works. The facts and information presented refer to the company and the economic scenario refer to the present day quarter and the economic scenario of 2022. Once again, they're based on Information available to the company. With the conclusion of this legal notice, I would like to give the floor to Mr. Leonel Andrade, who will begin the presentation. You may proceed, sir. Good afternoon to everybody. It is a pleasure to be with you. And once again, thank you for attending our call. I would like to begin speaking about slide number four. Speaking about the highlights of the third quarter, we began with a digital transformation in practice. Approximately a year and a half ago we began this project, putting in investments and more people to be able to build new platforms for the organization. To give you an idea, up to present we have invested 160 million reais. I can now announce that we have concluded the creation of the new platform for all of the CVC stores. We will then see what this represents for the company. Now this transformation has been concluded. This is a business that the company should have done some time ago. we also began our loyalty program the club cbc after some time and we have announced the intention of acquiring owner travel this is a highly digital company that is very disruptive especially in the b2b market with very intelligent distribution, a growing and strong market with digital entrepreneurs. And I do believe that once this acquisition is carried out with owner that should happen at the end of the month, this is our forecast. But once this acquisition has been concluded, we will have a competitive edge and we will be able to create new things for the company and transform CBC into a more competitive business unit. We have also launched the credit marketplace. As you know, we work with the retail companies and we now have this credit marketplace offering credit with up to 24 installments with interest, substantially reducing costs. our dependence on one or two suppliers. We will have multiple credit providers as well as banks and we can use our credit cards in other businesses and not necessarily offering credit, which is not our core business. Now for the quarter, we had a increase in consumed bookings in April. In fact, we had a strong increase, but all of the other months internationally also had a strong increase in we have seen a recovery of tourism and we have been performing with a very strong growth of consumed bookings. Now, in terms of a new differential, the cruises are back and they have attained significant market levels. We have never sold as much this semester as we are selling now, and the prospect continues to move forward very strongly. We had an adjusted EBITDA of $72 million. This is the best we have had since 2019 for the present-day management and since the pandemic started. It shows you that we are making the correct and assertive decisions when it comes to cost, the operational part, and the soundness of the business. We continue to be highly conservative and intend to remain so. Our growth, of course, could have been higher, but this would not necessarily represent better results. We're looking at the company from the bottom up. based on the bottom line to make the right decisions for whatever is sounder for the company and making ever better decisions. This is how we like to work. The operational leverage is growing. Revenues are increasing. and they have been favoring a very healthy recovery of the company EBITDA. On the next page, number five, I would like to refer to this digital transformation and the omni-channel. It is a fact that historically the CVC did not become streamlined. We were the owners of the Brazilian market with distribution in brick-and-mortar stores. We continue to be this way. We have a network of 1,100 stores. We're 20-25% larger than any competitor The second competitor has approximately 50 stores today. So we are competitive in B2B. We hear competitors speaking about the opening of new stores. And we hope that they will be successful, but it will take them years to attain the success that we have attained. Well, this is an edge, but it cannot be sustainable on its own. We have never worked appropriately in the digital world, in the e-commerce world, and through applications. And we... do want to attain success with the audience, which presently is 100% digital and refuses to go to brick and mortar stores. Now, for the first time, this will materialize and CBC will now become part of this blue ocean. We will now be able to compete with our own brand, Of course, with that superior experience and especially with our brand, with products that, of course, work hand in hand with our network of franchisees, enabling us to be the only company in the Brazilian market that can truly say that it works in the omni-channel world. And we intend to do this in a very sustainable way. Now, the new platform is fully operational. It has been fully implemented. It has proceeded according to what was planned. And all of our stores presently have the capacity of operating with this. This, of course, will leverage the upselling and cross-selling, enabling us to be more expeditious, offering a very good experience. And we will be able to reflect this on Internet. through our application and in our brick and mortar stores. This means that, as of now, the CVC store can send to any audience. The seller can visit any customer, any facility, because everything will be based on internet, and this will grant us mobility and, of course, the ease of having this mobility. We go on to page number six. Once again, and this has always been the case, CVC was elected as the top of mine travel agency brand years, light years ahead of any other company. And for the first time, There has also been a recognition for our application, and we were acknowledged for the brand top of mind for our app as well. And this, of course, is proof of how strong our brand is, and this will be fundamental with the use of the new digital platform. on page number seven our loyalty program the club cbc has already been fully implemented digitally in the first semester it will be available in a hundred percent of our brick and mortar stores uh in the uh redemption of points and the accumulation of points And we do have that unique capacity of being a multi-flag program, working with tourism and traveling. We ended the quarter with... 31,000 customers. We continue to grow. Of course, we're using CRM, and this is an enormous opportunity for Synergy. This will become a highly ambitious program, and this program will be for the entire community of business. They will receive a partnerships from banks, from several other sources, allowing for the redemption of points 100% in airline companies and 100% of all of the CBC core portfolio. So we're going to continue to create this differential and we proceed with a great deal of confidence on page number four. Seven, we have launched our financing center, our credit marketplace. What is more important here is that this benefits our working capital as well as benefiting the customers and the franchisees who will be able to work with a great number of banks and with digital and operational expeditiousness, transparency and agility. This, without a doubt, was the quarter with the greatest number of novelties and a delivery of truly essential projects, of course, among several others that are in the pipeline. All of this will substantially enhance the company. Our focus for the coming quarters will focus on operational excellence, through internal gains. We have now aired the entire front office of the company, which is new. There are still some projects that will be launched in the coming three and four months, and we can now focus in-house on the back office and after sales projects. making the company a benchmark in terms of operational efficiency. This will be the reality of the coming quarters. Thank you for your attention. And I would like to give the floor to Mr. Coble, who will speak about the CVC core results. Good afternoon. Here I am on page 10. and I would like to speak about some indicators and results. We have had a significant increase in demand, increase in consumed bookings, and of course this has a repercussion on revenue. When we look at Brazil, the growth was 14% vis-a-vis the second quarter and almost 35% with the past. We're growing 32% when it comes to the second quarter, 22%, and 200% vis-a-vis the same period last year. The net revenue had a strong evolution. Brazil grew 20% and Argentina 45%. All of this in line with the boarding regarding the take rate. 8% higher than what was reported last quarter because of some elements that had greater representativity this quarter. We have been growing quite a bit in the cruises that have a very interesting average ticket. Now the take rate has an interesting dynamic for us when we sell cruises. by using our working capital, we receive our contribution directly and we can sell all of this now without having to use the working capital. In B2B, we see a return in the margins that we had observed in the second quarter, 5.8% of take rate compared to 4.8% in the second quarter. We see a higher share of the non-air traveling. We had almost 20% this quarter vis-a-vis 15% the last quarter. And nationally, we have greater relevance than internationally, once again impacting the take rate. In Argentina, a significant evolution. The take rate went to 7.2 due to several factors. speedier growth in the mix and better prices. In Ola, that is our B2B in Argentina. Now, in the last quarter, the take rate was 6.6, growing to 7.2% this quarter, showing the positive dynamic of the business. On page number 11, we speak about our financial performance growth. Our net revenue is aligned with the growth of reservations and grew 25% vis-a-vis the second quarter and 47% compared to 2021. EBITDA, as mentioned by Leonel, had a recovery, a growth of revenues. We had 51 million reais of EBITDA. In the period, an adjusted EBITDA of $72 million, the highest result since the third quarter of 2019. All of this, of course, aided and abetted by revenues, but also the control of expenses and that had a lower growth and it shows that we have a very good operational leverage in the company with fixed costs under control and of course very interesting growth. When we go on to cash flow on page 12, the cash flow this quarter repeats the efforts and the commitment with cash management without of course sacrificing investments in the digital platform and in the projects to transform the company. We mentioned this at the beginning of the presentation and of course this is being preserved. We began with a robust cash because of the capital increase we carried out in the second quarter of 378 million reais. Now, this cash has been invested in the company's working capital and in growth. In September, we looked at our balance we had a level of anticipations of receivables of 566 million reais. And if you want to go back to our accounts receivable gross, all you have to do is add 566 million, and we ended cash at this quarter at 402 million reais. We remind you that the anticipation of receivables is a management for short-term liquidity. When we look at the company indebtedness on page 13 at the end of the quarter, net debt was 995 million reais without a change vis-à-vis the previous period. We continue working in the market seeking the management of our liabilities. We have some liabilities for the first semester of 2023 and we're working hand in hand with the market to change the profile of this indebtedness which will allow the company to continue to grow and benefit from this operational leverage. I would like to conclude my part and return the floor to Leonel, who will speak to you about slide 15, Flight Plan. Well, thank you very much, Marcelo Coppel. Before we go on to the questions, We have had a very strategic delivery of projects in this company, and this is the way we will be acting in the market going forward. We would like to become consolidated as the first Brazilian tourist tech, both with the digital and brick and mortar stores, adding ever more tools to this capacity. The first is the Club CBC, for loyal customers. There is no doubt that a loyalty program can truly set us aside for the right reasons, and this is what will happen with the Club CVC. We are extremely proud of the fact that doubtlessly this is the most representative loyalty program in Brazil. We have attained 31 million customers with almost 11 million under the area of influence or contactable customers. And we continue to enhance this. This figure does not stop growing and it will probably reach 40 million customers in a very short period of time. Now, we do have that convergence of channels because of the platform. We can continue to follow up on our customers offering similar products regardless of the channel, but also differentiating our offers based on a deeper knowledge that we have of customers. This will turn us into an extremely robust business from the viewpoint of having the customer at the core. competing transforming each customer into our end goal with customization we do continue on with strategic fronts that have to be delivered well the main front of course in the few months until the end of the year we're going to unify the B2B platforms. This means that our 8,000 travel agencies will be operating on a single robust platform for all of our products, whether it is air transportation or land transportation, or C, all of this from our stores. We would like to remind you that we're the only company operating in the B2B market with complete products both for air and land travel. And we are leaders in this business currently. I have referred to how we have been leaders in the market for the 10 years, and we will continue on with this differential business. This is a product that does not use our capital. Once again, this is something that I would like to underscore. There is no need to have to use our own working capital. Another fundamental point in terms of going to market. We are focused on continuing to grow in a very sustainable way and We also want to grow consistently, minimizing risks, and to do all of this in a very transparent way. We are a company with top governance in the market. At this point, we conclude the presentation and we would like to open up for questions and answers. Ladies and gentlemen, we will now go on to the question and answer session. Should you wish to pose a question, please press star one. If at any point your question has been answered, press star two. Our first question is from Eric Wong from Santander Bank. Good afternoon, Leonel, and thank you for taking my question. On the part of reservations. We see a slight reduction in terms of B2C in Brazil. I would like to know if this is an effect of seasonality or if it is too short of a term to think about recovery and what is happening with confirmed bookings in Brazil and this compared to the levels that you had in 2019. The second question, You referred to restructuring. If you could give us more color in terms of what can be done going forward, your gains in terms of operational leverage. Well, thank you very much for the question. I will begin to speak about volumes and sales in general in Brazil. In this quarter, the sales were not satisfactory. Now, which are the reasons for the sales not being satisfactory in B2C? Several reasons. First of all, CVC It is a mass company in the market, and because of the economic scenario with an increase in interest rates, we do feel this impact, a seasonal impact, which is happening at this point in time. This is what is happening with banks, what is happening with the retail market, a retraction of consumption among the more popular brackets, The traveling tickets have increased substantially. We have had enormous inflation in terms of traveling. And of course, this has an impact on the more popular brackets of the population, which is what CBC works with. Another reason is that this was precisely the quarter of the operational transformation in the company change of platform. A very positive thing is that the platform was changed without causing any trauma in the consumers. The customers did not even perceive the change, but of course, this continues to represent a distraction during the period, and there are still some developments for customers to become more familiar with this platform. They had an impact on sales as well. Another reason is that since the beginning of the year, we had scheduled the transformation of our platform as any other company. We stopped investing in the previous platform. Now, there was a strong recovery of the market in mid-year. It became somewhat difficult to put in our competitive products. For example, we could not have the credit marketplace on the older platform. In the case of B2B, if our performance was not very good, we could say that this is due to our conservative management. We don't necessarily do things, especially if they don't seem to be correct or because they will not make money or because they would be based on abusive and unnecessary credit. We continue to base our management on a very conservative stance, especially when it comes to credit. Once again, this is a decision that we have taken consciously, and this is how we prefer to operate in the case of B2B. In B2C, we need to recover credit. And there's an additional point, if you allow me. B2C was always based on brick and mortar stores. This is what CBC had. Beginning now, this will change. In the pandemic, we lost approximately 200 of our stores. And of course, this distribution is lacking at present. We still have some gaps in terms of distribution. Let's look forward and see how we're going to resolve this. We're going to stop having the distraction and we'll now have a more competitive, a faster platform. And once again, we are inaugurating new stores. This will be done in the short term. And our focus, however, will be in the digital world. With our capacity of generating everything on a unique platform, everything will be converging and we will have that so-called omni-channel work. And our stores will become ever more competitive wherever they are going forward today. We will begin to observe this in the first semester of 2023, and we're getting ready to see our competitiveness grow in B2C. I hope to have responded to your question. I will give the floor to Kobo, who will respond in terms of efficiency. Thank you for the question. Now, the operational efficiency was a very significant step that we took with this platform. This eases the customer's experience at the store and it enables us to work more in the back office part. we're going to revise and automate some processes and several of them will be eliminated from the platform. This goes from a very simple example of changing a seat number on a flight, for example, And we will eliminate a great deal of the work that was carried out previously. We're quite optimistic when it comes to the opportunities we have to rationalize this process. And this doesn't mean that we're not going to continue to show you the operational leverage above and beyond what we had obtained. We believe that this will continue to occur during 2023, and this will come mainly from the support from the back office areas. Well, thank you. Thank you very much. The next question is from Vinicius Preto from Bank of America. Good afternoon, Leonel. Thank you for taking our question and congratulations on your results. I would like to explore the opportunity of the credit marketplace If you could remark which has been the adherence of the customer up to present, what you have seen in terms of the approval rates, and how this can evolve when it comes to a market share. You also spoke about your new platform, Atlas. Yes. If you could explain to us the way that this was received by the stores and the project that you have for the coming months. Thank you very much. I'm going to. Refer further to the marketplace, the rate of approval is of approximately 40%, an interesting rate for the market when we speak about CDCs. We remind you that this is a product that is added to all the other means of payment that we have. We don't have the intention of telling the customers what they have to use, but this allows for payment in up to 24 installments, which is a great ease. We have observed that customers have worked with installments of 12 to 15 times. The rate of approval is of approximately 40%. And our expectation is that as our own sales force becomes more accustomed to this and is able to show to the customer that they can stretch their money much further, this will enable us to sell more and offer better products and services and of course the franchisee will also benefit from this process we have rather interesting outlooks in terms of this the initial penetration tends to go to tickets We sell based on tickets with financing companies. And at the same time, this process has a great plus for customers that want to pay in installments in their credit card. They have the opportunity of extending the duration of payment and perhaps travel even more. this for customers that will substitute the credit card with the credit from our marketplace. This is what we are foreseeing for the credit marketplace. Vinicius, I'm going to add something here. speaking about Atlas and how this platform was received by the stores. All of the stores have implemented it. So far, we have not disconnected the former platform. This will be done in the coming weeks. We want to allow the stores to become more familiarized with this new platform. Surprisingly, the performance has been very positive. We have not faced any problems of having to hold back the migration. Of course, we're waiting until everybody has become more familiarized, but the responses have been very positive. And as in any new product, there are some tools. When you change to a more streamlined smartphone, you learn to use the tools the more you explore and the more you become familiarized with the tool. And here the leap will have to be quantic. We had acquisitions that had not been concluded where one product would not converse with another. The efficiency was very low. And now there is that intuitive space in which we operate based on the navigation and with all stores using this day after day. And the platform is extremely easy to use and have several resources that people have not learned to use yet, of course. It's still at its initial stage, but so far the response has been very positive. And this migration is reaching its conclusion. Another point of your question looking forward in the next 18 months, and I say 18 months because we began this process at the end of 2020 because of a matter of survival. we began to invest in 2021 and worked on the development we had forecast that it would migrate this year and this refers to all of the initiatives of the front office allowing us greater competitiveness But we do have a historic challenge in the company, which is the operational efficiency. Everything was done manually in the company, and we never made investments in the integration of our processes. Everything was based on manual transactions. During my management, in a certain way, we... guaranteed confidence in controls and governance. And to have the guarantee of this confidence, we included more employees and we created a culture of checking everything that is being done. I look upon this as an enormous opportunity at present. Our focus is to look forward to conclude the new B2B platform. And all of our work will focus on efficiency work, efficiency gains through the automation of processes, internal processes. With a gigantic company as ours, every process, besides offering us security, has to offer us enormous opportunities in terms of efficiency gains. If you look at the beginning of the year and look at the next 18 or 24 months, you will observe an operational transformation in the company. We will have a highly streamlined company, both inside and outside in the next two years with changes happening day after day. This is our outlook. And of course, day after day, we think about our shareholders and our customers. Thank you for your question, Vinicius. Thank you. Ladies and gentlemen, we would like to remind you that should you wish to pose a question, please press star one. The next question is from the webcast from Luis Felipe from Inter Asset. Leonel and Kapo, good afternoon. Could you give us more color on what is happening with the negotiation of your debt? Well, thank you for the question. I would like to go back to mid-year when we decided to do this. At that point in time, we looked at the market. We had the good news, the good reception in the conversations that we had with those who were holders of our debentures, that they were all very receptive to credit for CVC. But at that point in time, and given that we still had that rationale that we had of the operational leverage and growth in the market, the market was requesting a premium from us and we understood that this premium did not reflect everything we had to do so at that time we decided to work with a follow-on with 400 and some million reais which was done knowing that we would have to have a new conversation with the market, a more productive conversation, not regarding the CVC credit, but the spread of our credit. And based on our beliefs, we could say that our credit spread should reflect this. We saw our debenture, There was a reduction in the rates vis-a-vis the beginning of the year and mid-year. And now, if we look at the company evolution, we believe that these conversations can and can, should become more productive. In the first semester of the coming year, this is what will be done with a higher concentration on the second semester of the year. Now, receptivity or reception of this has been quite broad. This will enable us to continue to grow the company. We're not going to sacrifice the company growth. And we will have a lengthening of our debt profile because of this. Conversations are well advanced. We have been very proactive during this period with the market receiving this change very openly. Well, thank you. The next questions are also from the webcast. We have João Pedroso from TX Invest. It is expected that the loyalty program will represent a certain percentage of the growth of the company. And Vitorino Galindo from Quantico asks, Could you remark more on your expectation of contribution of loyalty programs to your results, cash flow, and company balance? Well, thank you both for the questions. We do not offer guidance, and because of this, I cannot respond to the question. What I can say, however, is that given our relevance and the number of customers we have, 31 million, and our differential in terms of knowledge, we are working with a highly streamlined platform for loyalty. which is an international platform and that has been used by other companies in Brazil. We're entering a world of self-knowledge in this business with a gigantic brand and a top-line platform. This will be the first loyalty program that will be operating in the brick and mortar world as well, because we have the distribution we do. 1,100 stores receiving, selling loyalty programs, transforming any redemption or points accumulation program. So we are confident that this is a very robust program that will achieve a market leadership in terms of its revenues. All of the larger programs in the market have been there for quite some time, a minimum of one decade, some of them for at least two decades, and they have been built through time. It's perhaps too early to say how much this will represent of our revenues, but doubtlessly this will be a significant transformation for the company, something that will generate value and enhance the value proposition of the company. Thank you for the question. Our next question is from Juan Suarez from Citi. City Bank. Good afternoon. We have two questions here. The first, Leonel, I would like to explore the response to the first question. Some companies have a more aggressive strategy and they're losing money because of the increase in the delinquency levels. Market share, this is the first question. The second question, that sequential drop also coincides with a sequential drop in marketing that dropped considerably vis-a-vis last year. I would like to know if this lack of investment in marketing has a repercussion in your bookings and so on. Well, thank you for the questions. Regarding the aggressiveness and B2B that I remarked on, I'm not going to be specific, but the dynamic of this business is credit and working capital. Those who sell the agencies pay us after a fortnight. This is the term that we have with airlines. If I adopt lower terms, I have to use my own working capital. Many competitors give terms to the agency and they're giving them 30, 60 days besides a very high working capital. They're also increasing their risk. and we tend to operate in a very conservative fashion, offering limits to the travel agencies. Some competitors have been highly aggressive, working with limits that are not truly understandable when it comes to credit. We could be selling more, but in this case, we made the decision of being more conservative. And we're also conservative in terms of prices. We believe this to be a good practice. And I cannot speak about competitors A, B, or C. We continue to be in the market. We have gained a share in the international market, in B2B, in the national market. We have lost share in the last few months. This does not mean we will not be able to recover it. When we speak about B2C, that drop that you referred to, we have explained this and its association with marketing perhaps is stretching things a bit. we knew that we would have this change of platform and that we would have other priorities as well as credit restrictions we disinvested a bit however we should underscore that never in its history has a company made digital investments in social media and digital marketing nowadays we are doing this our investments may drop but continue to be highly effective. Instead of operating on open TV or otherwise, or the printed press, And if we have more customers in the stores, it's because of our investments in tools such as WhatsApp. This is something that the stores value. We have not concluded our budget for the coming year. We're still discussing this, and perhaps we will recover our investments in marketing. It's not because we have less marketing that we're having less bookings, but we have been more conservative. Based on the potential of the first quarter, we will begin to recover that market share. Thank you for your question. Well, thank you, Lionel. The next question is from João Paulo Andrade from Bradesco BBI. Good afternoon, Leonel Coppel. Thank you for taking the question. If you could speak more about the CRM, if you're using this in the digital platform. Which is the potential that you foresee in the long term? And what will be the cash dynamic during the ramp up of this platform? Well, thank you, João. Well, CRM represents a mixture of things. Two years ago, we set up this area that did not exist in the company market. It's a customer area with a main goal of transforming the company into a large repository using streamlined tools to get to know the customer better. Obviously, we worked with a team of scientists that were very focused on data lakes, on data science. And we have come to something that makes us very proud, the dynamic pricing approach. From this viewpoint, CVC is one of the most modern companies in the world when it comes to the management of its customer base. And, of course, this will grow as we gain more knowledge. All of our risk products are under dynamic pricing, and this is fundamental in algorithmic pricing as a whole. This means that we begin to have a channel and a more customized action, ensuring that the customers can integrate into the platform. My theory, and I have adopted this practice, I came to Smiles in January and they launched the app for Smiles two years later. Why? Because we spent the first years on creating the app. We invested heavily for two years with the same team that had worked at Smiles with the same management. And now it's time to transform all of this into digital tools, especially in the app, which is already in the stores. You can't have a good platform if you don't know your customers and vice versa. The other question about the cash dynamic. Well, the platform always generates cash and it will always accumulate points. And after some months, the customer will be able to redeem these points. As this grows, it will help the company substantially. Thank you, João. Well, thank you, Leonel. The next question is from web from Yuri from Trilla Investimentos. Thank you for the call for the fourth quarter 22 and going forward. With the conclusion of all of the important projects that are being delivered now, how can we imagine the company Capex? Can you also give us color on your SG&E expenses? Will they continue to be under pressure in the short and medium term? Well, thank you for the question. As mentioned by Leonel, we're going through significant implementations currently. Now, the Atlas project, the unification of B2B, the credit marketplace, the database that was implemented, and the main focus, of course, is the investments that we carried out. We still haven't concluded the company CAPEX for the coming year, but doubtlessly it will be lower than the CAPEX this year and more in line with the CAPEX that we had in 2021, perhaps somewhat below that. The other question refers to SG&A. Now, SG&A will begin to benefit because of the work we carry out in-house. We have offered a better experience to the travel agent, to customers, to channels, and the next focus is to address SG&A through enhancements in the processes and procedures. There will be less pressure caused by SG&A in 2023. We still haven't concluded our budget, but of course it will reduce the pressure vis-a-vis the year 2022. And as we work with greater rationality, with greater simplicity, eliminating redundant systems and processes, we will lift the pressure from SG&A. It's a year where we should be more efficient looking at expenses and not thinking about other ratios. The next question is from Nicolas from JP Morgan. Good afternoon, Leonel. Thank you for taking my question. Most of the questions have been answered. What will happen with the mix of B2B and B2C? What is it that we should expect for 2023? Will there be a new balancing out of the mix? Nicolas, thank you for the question. I have a lower concern in terms of that balancing. Presently, B2B is higher. Only in Brazil, it represents 60%, very roughly. I have a lower concern, but my concern is that B2C will continue to grow. If it continues to grow, regardless of whether it is 50% or 60%, what is important is to have it grow. B2B is also very profitable and has more space to grow. Without a doubt, we're working so that we can continue to increase our market share, grow again in B2C, And it's too early on to speak about this because of the transformations beginning in 2023. All of the projects will be consolidated and hopefully we will have a company that will be less distracted with other issues. We're renegotiating the debt, for example. Now, all of these things draw our attention from the national situation, but everything is in line for this to happen so that beginning in 2023, everything will play in our favor, including the market. The coming year, the market will tend to be very positive, favoring B2C and enabling us to grow. I hope to have responded to your question. Yes. Thank you very much. At this point, we would like to end the question and answer session. We will now return the floor to Mr. Leonel Andrade for the closing remarks. I would like to thank all of you and state that we have just concluded an extremely important phase of the company the transformation the streamlining of the company from the viewpoint of customers products platform and front office this will enable us to better compete And we're very confident in terms of our plan for 2023. We're convinced that we will have an increase in bookings. We will have a very streamlined company. And of course, the best value proposition in the segment where we will be in all of the tourism segments as a leader. We have the best brand in the market and without a doubt, the best team. And all of this brought together enables us to have a great deal of optimism on the future of this business. And we will now enhance the in-house part. And I would like to make a commitment that we will have a great deal of focus and enhancement in operational efficiency, which means to consistently look upon our SG&A to enhance productivity and unify. what I have always referred to a robust and sound governance. And all of this will have a standard behavior enabling us to better manage the company and grow. Thank you very much. This is the last release for this year. Thank you very much for your attention. conference call to release results for CVC Core ends here. We would like to thank all of you for your participation. Have a good afternoon and thank you for using Chorus Call.