CVC Limited

Good afternoon, one and all, and thank you for standing by. Welcome to the CBC Core Conference call to comment on the third quarter 23 results. With us today, we have Mr. Fabio Godino, the company CEO, and Mr. Carlos Wallenweber, the CFO and Investor Relations Officer. Please be advised that this event is being recorded and that all participants will be in listen-only mode during the company presentation. Ensuing this, we will proceed to a question and answer session when further instructions will be provided. Should any of you 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 can be accessed at www.cbccorp.com.br slash ri where all participants will be able to control the selected 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 will be made during this event relating to CV Corps' business prospects, projections, operational and financial goals. They are current expectations and assumptions of the company. Investors and analysts should understand that general conditions, operating conditions, may impact the future results of CBC Corp. Therefore, in the future, these forward-looking statements may differ materially from those exposed in the presentation. Therefore, everything will depend on the environment of risks and uncertainties and assumptions. The data and information presented After this, refer to the company and the economic scenario that pertains to the third quarter of 2023. With the conclusion of this legal notice, I would like to turn the floor over to Mr. Fabio Godino, who will begin the presentation. Mr. Godino, you may proceed. Good afternoon, everybody. Thank you for attending our call for the third quarter 2023 for CVC core. We see that very gradually we begin to observe the results of our strategy to bring back the original DNA of each company. Working with technology, we can see that the work that we have been carrying out begins to appear. In the highlights, we have an increase of 11.3% in net revenue for the third quarter of 2023, an increase of 160 base points in the consolidated take rate, an improvement in B2C of 10%, and in Brazil, an increase of 10% points, they take rate also much better than the same quarter last year. And because of this, our base of franchisees will now be able to maximize the results and we will be able to employ more people for the stores. After, of course, the opening of new stores, which of course is a very relevant position for us, we identified several opportunities in our business. We had a reduction of 23% in SG&A versus the third quarter of 22, and an increase of 34% in adjusted EBITDA vis-a-vis the third quarter 22, totaling 96 million. And this, of course, is the immediate reflex of all of the activities that we carried out. And the adjusted net income once again reached 36 million reais. In the last weeks, we have returned to the office 100% in person for all of the areas. And of course, this is very important for our efficiency and also to be able to disseminate the culture of CVC. In the next page, you can look at the new governance and shareholders, the board of directors that was elected at the end of August. What is more important here is that we have a board that is fully aligned with the rest of the base of shareholders. that is made up of the largest shareholders in the company. And they're working well with the rest of our base of stockholders. We have members from the Bals family that allow for enormous growth in the sector and also contribute with significant financial gains in the sector. So we're working in a very aligned way, and we, of course, have simplified everything so that we can maintain our focus not only on governance but also on the execution of our action plans for the year. So we have as part of our internal committees, audit risk, the finance commission, the people committee, which of course is important. It's always important to highlight that our team has deep knowledge of the verticals that they act in. We did have some additions to our team throughout this quarter. and we are divided into business units and support to the business units. Now, the general director is Emerson Belan-Casla in experiment, who works with the visual part and upscale operator. We have the consolidator, Elena, who consolidates a part of hotels. And this semester, we have added as the general manager for operations in Argentina. He has more than 30 years of experience in tourism and in Argentina. He was the general director of Copa Continental Aerolíneas and more recently was responsible for 15 countries for AeroEuropa. He's of course very seasoned in each of the verticals that we work with and in the support to the business areas. We have modded in terms of product and pricing, supporting all the business areas that are in yellow. Balaya, who had already begun to work with us, giving technology support to all business areas. And the novelty is the return of Ricardo Pinheiro to the area of CCO and CST. They had been separated, their shared services and their control areas. Now they are once again together under the leadership of Ricardo Pinheiro, especially at CVC, which is where we have a great deal of experience in the part of operations. And Carlos, who throughout this quarter has consolidated other areas, the legal area, the people area, finances, and IR. As you can see, we have a highly qualified team to face the challenges that we have ahead of us, and the results are beginning to appear. I would like to give the floor to Carlos, our CFO, who will continue on with the presentation. Good afternoon to all of you. It is a pleasure to present to you the operational performance for CVC Core. We had a significant enhancement of our figures. We begin with B2C Brazil. We had an increase of 10% in the sales volume, totaling 1.3 consumed bookings. Now, we had an increase of 1%. vis-a-vis last year for several reasons. First of all, a greater advance in the purchase of trips of customers before the pandemic. And secondly, because of a higher share of exclusive products. During the quarter B2 period, B, Brazil represented 10% of consumed bookings and 50% of net revenue, thanks to a substantial improvement in the take rate vis-à-vis last year, 3.6 percentage points. This was caused by an improvement in the operation and a better pricing strategy, of course, to increase our profitability. Net revenue for the quarter totals $208 million, a growth of 34% for the quarter for the year The revenue was $490 million. Now, if we go to the performance of B2B Brazil, we had a reduction of sales of 7.2% for the quarter, totaling consumed bookings of $1.2 million. Now, this is due to the restriction of sales for operators because of their credit risk. and proved to be an assertive measure taken by CVC. We're working towards improving the profitability of our clients' portfolio and improved take rate that went from 5.8 to 6.1 during the quarter. We're not seeking growth for growth's sake. We want a profitable growth of our company. B2B Brazil represented 37% of consumed bookings and 20% of bookings, totaling $238 million for the year. We go on to the performance of Argentina on slide nine. We had a reduction of 54% in sales. This is due to the fact that the third quarter last year was an outlier because of greater flexibility and sanitary conditions for traveling. This corresponds to 90% of our revenue. Argentina continues to grow in the sales for the year with a growth of 16%. I would like to highlight that the take rate of the year is associated to taxes for traveling. In the quarter, the Consumed bookings represented 25% of the total and net revenue 17%, totaling $70 million for the quarter and $213 million for the year. We present consolidated data in the next slide. The net revenue for the quarter was $376 million with a growth of 11%. a take rate of 9.6%, a significant improvement of 1.6%. We continue to be obsessive so we can reduce our administrative expenses. They represented 52% of net revenue compared to 67% in the third quarter of 2020. As a result of the increase of pay grade and reduction of expenses, adjusted EBITDA grew 34%. It totaled 96 million in the quarter with a margin of 26% compared with 21% in the third quarter, 22%. At the bottom right of the slide, you can see the adjusted net income for the quarter. If we exclude past acquisitions, the write-offs, we delivered adjusted net income of $36 million, representing a margin of 9.7%. In slide number 11, we present our capital structure and cash movement or cash burn for the quarter. We carried out a tender offer and repurchased 85% of our debentures. We have a longer or extended program for debentures, and the thick of the debentures will be paid at the end of last year. Our cash represents $222 million. We're working better with the advanced account receivables of our clients. For the quarter, We allowed accounts receivable to increase to 435 million, and we had a reduction of 259 million. This way, we are reducing the financial cost of CVC. It's important to highlight that on November 21st, we will be issuing debentures for the follow-up. This resource will be used to reinforce the CVC cash. I would like to return the floor to Godinho to conclude the presentation. When we speak about the figures, you will see the value generation that CDC is able to generate for our base of suppliers or partners. This is an example of how CVC business can generate value for an air company. We have four quadrants, the digital, the physical, the B2B, and B2C. And you can see the curve of how the price of an airline will increase of specific flights in this company. For example, in the horizontal axis, of advanced purchase, which we call ADVP, and the vertical axis is price. So the more in advance you buy, the lower the price. And this is where we have B2C companies coming in. CBC, Experimento Mundo in Argentina, of course, increasing this system and enabling air companies to close these lower-cost tickets And this load factor is fundamental so that as part of this quadrant, the B2B, where the advanced purchase is of 60 days. Of course, this is what we sell more. These are leisure companies, B2C companies. And this is where we work with significant load factor after the 60 days when it's close to the board game. We end up selling a great deal of quality to the air companies and the hotel sector through TREN, through RA, and through OLA, which are our B2B companies, which is where we are able to add much more company for the airline. One thing. added together will maximize the revenues for the air company. For example, we're adding not only quantity, but we're also adding quality in terms of the revenues of the seeds that are being sold by our B2B companies. And this is what it means to maximize revenue and how CDC can help in this process. We seek out this client in the digital universe, as well as in the physical universe. We are a hundred percent adjusted to this model of sale of tickets, which is the physical plus the digital. And we generate for our stores more than 1 million of sales in the digital online part from the sale of our stores where the client doesn't walk in through the door of a store, does everything through a salesperson computer, but is still serviced with a great deal of confidence. and received the recommendation of a travel agent, of course, to have the best possible traveling experience. And this is how we add value in our business. And it has been a very positive step for our partners who were impacted by our marketing campaigns. We have included this channel for marketing strategy both offline and online. We have worked with a yellow alert. We're now getting ready for Black Friday. We had 300 million of impact only on online by working with open and closed TV, media out of home, M-O-O-H. So, we're taking that 60% of clients who have still come through the door of a store. And in offline, of course, we're working with other digital channels that are working with a million people that have not been serviced in our stores and represent 40% of our stores in the digital channels. And in the next channel, all of this has been solved through our technological innovations. ChatCVC is our first tool. We're launching the 2.0. We will have a third release, 3.0. We have already launched artificial intelligence. As a salesman sets up a package with a destination, this opens up a tab on our sales system that includes all the details, the characteristics of the destination that this consultant is offering. And that way, each of our salesperson can immediately become a specialist in each and every destination that we're selling. And of course, this is thanks to the innovation of our IT team. Many clients come to the CVC stores and ask for hints of where to go. Many people don't know where to spend vacations, and we're doing this allied to the salesperson experience, along with this chat CVC 2.0, where we will have significant action for any package we offer, whether it's a land package, air package, hotel, or special tours at the destination. So this is the purpose and the raison d'etre for CVC, to offer the best attention to the traveler. Another innovation And that continues the process of purchases for vacations. This is another implementation called FastZap. We're speaking of 1 million of digital leads in the stores. Now the management of these digital leads is done through this tool, FastZap. Formerly, this was separated in different systems. Each salesperson would do things differently. Throughout this quarter, we were able to harmonize 100% of the stores by using this tool where we have franchisees and we have been able to have a very clear vision of how many leads we are generating, the time of response for each store, for each lead, which was the level of conversion. And that means we are able to have greater details and a more assertive management. Of course, this integrates with sales and integrates fully with our CRM. Now, to speak about our flight plan for the last quarter of this year, we're quite satisfied to be here rendering accounts for the year. This is something we presented to our investors, and we are literally rendering accounts of what we did in the third quarter and what we're going to be doing in the fourth quarter and throughout 2024. The tripod of our strategy is our exclusive products, alternative forms of financing, and the expansion of physical sales, especially in the hinterlands of Brazil, where we have a more striking growth. In the first bullet, where we have exclusive products, we're going to work with charters, and exclusive negotiations with our partners. Of course, this is the soul of a tourism operator, and this will be the focus when it comes to the product and the company. This will give us a competitive edge that is much greater. We need less working capital when we work with charters, and you pay the air trip only after the plane has left and not before which of course will offer us a more positive working capital dynamic for the company and we will see a much higher take rate for our base of franchisees as well as for the company with the advantage for our consumer that these are CBC exclusive products that we have built within the company. This is part of the DNA that we are recovering once again. With the incredible take rates we have had with B2B and B2C and in the fourth quarter, You will be observing this in a very positive fashion. The second point is to take our client away from credit. Nobody wants to travel with debt. And we want to work with alternative forms of financing. We're working with the FGTS, which is the Guarantee Fund for Time of Service. Something disruptive in traveling. People will be able to withdraw their anniversary bonus installment of a bank slip. We have had extremely low default levels. We have a more cautious management, especially after the boarding. And this is the secret of this form of financing. We also have travel financing from Banco do Brasil, where you can pay in 60 different installments. And Bank of Brazil will make this type of financing possible. And then the expansion of sales and same-store sales. an increase in them, and we had a very sudden increase in same-store sales after we presented this, and we have to guarantee the increase of margins and sales for our franchisees, which will, of course, generate a very interesting position in our base of franchisees. We're focusing on products, on the right marketing, focusing on marketing and after sales experience that is very positive, leading to very important interest and the opening of stores with a focus outside of the main capitals and in the hinterlands. 65% of the stores of CVC is already outside of the main capitals of Brazil, with that proximity, which I think is the word that we would like to use here, where we have great confidence in our franchisees and our partners that control all of these accounts. And of course, we work with our base investors and shareholders. So this is a strategy of a company allied, as we mentioned, to something that will evolve gradually in the coming quarters, an improvement in the mix and an increase in the take rate in all segments. And in the next slide, we would like to show you a survey carried out by SEBRAE and the main consumption centers. First, the dream, the consumption is to travel throughout Brazil and then to travel abroad. After the pandemic, this has had a very strong and positive recovery for home flights, domestic flights, domestic hotels, and now this desire to travel abroad will exist throughout the coming year, and we're making strong investments in this. We're extremely prepared to service this continuing demand for the coming years and the future. And what is more important, when you ask this consumer who it is they remember when they're about to go out on vacation, when they're thinking of tourism, 52% of Brazilians will come up with CVC. So thank you very much for this. Let us now go on to the 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 1. To withdraw your question from the queue, press star 2. Our first question is from from Santander. Good afternoon, everybody, and thank you for taking my question. I would like to hear more about your working capital. The strategy that you have implemented in the last month has had a reflex with profitability in the company. If you could explain to us how this will work. perhaps not a significant enhancement in the short term, but what is it that we can imagine for 2024, which will be the working capital profile because of these two pillars that you mentioned in your flight plan. This is Carlos speaking. First of all, thank you for your question. That is very pertinent. An important thing that we did was to work better with anticipation of credit cards. Within a quarter, you will see that the accounts receivable from clients increase more than $425 million. And if the company needs to work with this grant to comply with its obligations, we can bring this money within the company and work Well, the following day after the advances, money is in the company cash. With the IPO, we worked with less advances. We reduced our financial cost in the quarter, which helped us increase the net revenue in cash. And we're now going to work in a more rational way with the anticipation or advance of acquirers. When we launched the campaigns and worked with marketing with expressive results, our same store sales and sales volume in B2C increased significantly. We enhanced the 10 payments in the credit card and bills for 12 installments What is important, however, is that we offered a greater time for payment with better conditions for clients that pay in six times. In fact, they will continue to pay without interest rates and they will have specific products. For those who pay during more than six months, they will lose this discount And so we have interest rates for longer payment terms. Now, when we look at the mix, the payment terms was concentrated on 10 installments. There were no interest rates. We have made adjustments and 25% of our sales come from the six installments through a credit card. So we have increased or enhanced the payment terms now in payments that are Longer, we don't offer this discount when we're applying a reduced rate. We work with full rates. This means that when we offer longer terms, we become more profitable. On the average, the average term to receive has changed, considering that part of the clients have decided to pay in fixed installments in the credit card, enhancing our profitability. And we can see this in the results of the quarter where we have better profitability in B2C. This is how we have been working. This is our working capital dynamic. Account payable to suppliers has decreased because of a higher number of boardings that we had. greater payment a reduction in the account of suppliers and we have been balancing out the capital the working capital in the company and the cash reduction is thanks to greater rationalization more intelligence in accounts receivable especially in acquirers of credit cards that's excellent that was very clear thank you our next question comes from João Soares from Citibank. Good afternoon, Godinho Carlos. Good afternoon to everybody. We have two questions at our end. I would like to, well, take advantage of the car. The competitive environment has changed significantly. We have two rather problematic players. The sector is recovering.

Which is your outlook for the coming year?

Perhaps it will be more inviting in terms of competition. And I would like to hear more about the take rate of B2C. You spoke about exclusive products. Which is your alignment with franchisees, master franchisees, take rate going forward? Thank you. Hello, Joan. This is Godinho. Thank you for your question. Well, we have two points here, the competitive environment and take rate. Regarding those two players that are no longer competitive, operating in the market one for air travel the other for land travel well the trend obviously will be positive there's eight million reais in gmb that were being generated by these players who will now no longer be available in the market now most of these clients We're demanding products that do not exist for prices that are unreal. And that type of client will stop existing. And for the other part of the clients, we already have a significant flow in the stores in the last two months. But these clients are extremely, extremely sensitive to price. we had an enormous volume of quotes but not a large volume of conversions in b2c for short-term hoardings now thanks to all of the promotional efforts without of course leaving our margins aside we do have Black Friday that promises to be very strong with a significant take rate. Now, we have a strong partnership with our suppliers, with our partners in terms of promotions, and November will be a very strong point in time for conversion for those clients who were asking for quotes and will finally end up buying all of the products and promotions that we're offering throughout the month of November. I believe that the relationship will be important. There's a bit of that macro dynamic that of course helps us, aids and abets us. Now the Tailwinds are always positive. We don't think they're bad. The market is growing and the competitors are basically disappearing from the market. This is a positive macro dynamic for us. But what is more important is the dynamic of the company itself in the coming quarters, in the coming years. We're going to be working strongly with CVC with the right governance, with the right strategy, with this strategy, with a deep knowledge of each vertical and with adjusted cost, this dynamic is in our hands. We have exclusive products that did not exist in our portfolio previously. This of course is one of our strengths. And Carlos mentioned this when he spoke about working capital. The more we gain in terms of share when it comes to exclusive products, the better our take rate because these exclusive products will only be paid for in the execution and not when we're issuing the tickets. And this is what we are doing at present. through this concentration of volume in our air products, a concentration of volume in less partners with more competitiveness, and of course, working with better partnerships. And we also have the offline sales, which is how most of the operators are working with quite a bit of success. We've put aside the credit card. We've created alternatives. And this is part of the help that we will offer to the passengers. And this financing has nothing to do with the company's working capital. We have that FGTS withdrawal for anniversaries that only CVC has in the company. And this will have a zero impact on our working capital. And it goes hand in hand with other alternatives that will take away our passengers from that burdensome credit. And this is the new opening. It's a return of our base of brick and mortar stores. Of course, in the capitals, we're quite saturated in terms of brick and mortar stores, but we are going to grow in the hinterlands of Brazil, where this dynamic is in our favor. We have the macro and micro dynamic, which are in our favor. And this, of course, will be a significant boost for the coming years. This is for the first question. Secondly, when we speak about the take rate, where we have had significant growth once again, and this is nothing but the beginning of our work. We're reporting the third quarter, more than one-third of the sales. The consume bookings were already obvious in the third quarter. Now, in... B2C, we lost share, but we gained margin through renegotiating with suppliers through these exclusive products, which very gradually will be implemented. And of course, this will increase the same store sales. Beginning in the fourth year of the coming year, we see a net positive dynamic of significant new stores. So this is the dynamic that we would like to see for B2C. And B2B that has the highest take rate, has strong growth. We have franchisees who are once again signing contracts with us and they have no working capital. And we look upon the dynamic of B2C in a very positive way. Now in B2B, we want to increase the margins as sales are dropping because we stopped issuing tickets. And of course this had an impact because of the bankruptcy of these companies, along with other companies in the tourism sector. the impact was quite negative from the viewpoint of credit. We did not feel that impact and we're going to increase the take rate of clients that were in a situation of deficit. Of course, they were in a situation of loss. We have renegotiated the credit or we have simply eliminated them from our base. with positive results that we will see in the coming quarters. Now the trend is for this line, this curve, to grow. We already have a positive take rate, and now we want to increase our share and grow the margins, not to gain share at any cost, of course. We have changed that strategy. and we want to grow our share in B2C in the land part, in the air travel, and this is already happening. And of course, this will have a significant impact on our growth dynamic. Well, thank you, Godinho. Thank you very much for your answer. The next question is from Vinicius Preto from Bank of America. Good afternoon, Godinio. Carlos, congratulations for your results. While you said that the franchisees are one of the main elements for the increase of your take rate, could you give us more color on this? The second question is, given your greater focus on working capital. What is it that you expect going forward in terms of default rates, I believe? Well, thank you, Vinicius, for your question. The first question refers to the take rate increase and negotiations with master franchisees. If we focus on the state of Sao Paulo, we don't have master franchisees. Now, the gain in B2C We worked with that negotiation, which is temporary during 12 months with some franchisees. We give them the option that if they overcome the sales goal, we will offset that reduction with their commission. But this is only in the states where the company, of course, has master franchisees. So this increase in take rate is marginal. compared to the negotiation of master franchisees. But everything came for better exclusive products, the renegotiation of products, the gain of renegotiation of products within CBC, and an improvement in mix. That's the first part of the question. If you could repeat the second part of the question.

You spoke about

12 months of payment after the 12 months, do you have any type of deferment? Well, not 100% of the negotiation.

And I remind you once again, You may continue, please.

Yes, I'm afraid our main line dropped. So, Vinicius, if you could please repeat the second part of your question. Which has been the evolution of credit and which is your outlook going forward? Thank you. in our marketplace, which basically refers to the sales that we divide in installments and price. They represented 5% of the company's sales, and this was 100% transferred to the bank that issued the tickets at a cost of 20% a year, which is a very high cost because of the risk and capital of CBC. What did we do, therefore? We increased the volume of financing through banks. They represent 10% of the volume we work with. We also have a credit engine to assess the score of each client where we grant financing, and we have implemented a credit and collection area which had been taken away from CBC two years ago. So we're back with this collection area. We have installed this credit engine and increased the percentage of financing from 5% to 10%. There is still room to grow our credit table nowadays the default is controlled by focusing on details we have a low detail rate we have provisions allowance after 30 days of non-payment and all the rest is left to the bank that gain of 20 percent is in accordance with our results and we don't transfer this cost to the bank that is issuing the ticket. As Godinho said, we are allowing our clients to have payment options beyond the credit offered by CDC. We have the FGTS, the partnership with Banco do Brasil for payment in 60 installments. We're traveling and we're working with other operators to offer a payment portfolio for clients, something that goes beyond the credit card. And this enables our client to travel. Now, simply to conclude this, Vinicius, this is not a reduction or a cut. For everybody that complies with a goal above an X percentage, they will have a specific percentage, so they're not losing their percentages. This was agreed upon. What changes are the 12 months, and this is everybody working together to give that boost so that CBC can gain speed and take off once again. and we're all contributing, the franchises, the suppliers, we all have been able to capture these gains, and we're trying to gain speed to take off. We do have that credit table where we can reach a limit of 15%, but compared to the 35% practice last year, we now have a more accurate rate credit engine, which leads to having a practically nil default level. And we gauge this every day, being very cautious. Thank you, thank you very much. Our next question is from Nicolas Larraina from JP Morgan. Good afternoon. Thank you Fabio and Carlos for taking my question. I would like to speak with you about your expenses. You have carried out a very good management of SG&A. and you have obtained a reduction of OPEX going forward, how much more room do you have in terms of reducing your SGNA? And which is a recurrent value that you could sustain going forward? Thank you. Well, thank you for the question. An initial survey that we did was to remove 100 million from the company OPEX, reducing the higher levels and consolidating the area within CVC. And some areas, well, we demobilized them, especially areas that did not contribute to products and sales in the company OPEX. Our next stage is more surgical, more careful. We still have a significant head count reduction, and this will be done at a second stage. All of the employees of the company, all of the executives, they're working at the office. This gives us efficiency gains. The average ticket is lower. We remind you of this, but the volumes are higher because our operation is now in our hands. We have a gradual improvement of productivity because of the synergy in the area, because of our internal controls and investments in IT. It's difficult to speak about the gains going forward. What we can state is that We will continue to have this material reduction throughout the coming quarters. It will be something more gradual, but there's still a significant part to reduce our SG&A. In the third quarter of 22, SG&A represented two thirds of our revenue. It is presently at around 50% of the revenues. but there is more room for evolution here so that we can continue to gain EBITDA margin. And we're going to sustain and enhance profitability through our sales and reduce, of course, our administrative costs. So there's still a significant part to do that will be diluted throughout 2024. Well, that was very clear. Thank you very much. Ladies and gentlemen, we would like to remind you that should you wish to pose a question, please press star 1. At this moment, we would like to end the question and answer session. I will return the floor to Mr. Fabio Godinho for his closing remarks. You may proceed, Mr. Godinho. Mr. Godinho, you may proceed with your closing remarks. I can hear you now. I do apologize. I was on mute. Thank you so much for your attendance. very happily rendering accounts in terms of what we promised to do during the follow-on. And we're showing you what we're doing in terms of adjusting governance for our financial partners and partners who have deep knowledge of our business. We have our family and others. We have the shareholders and the company board. We have a strategy that is aligned in terms of offline, online, the growth of brick and mortar stores in the hinterlands of Brazil, the right team. We have just concluded these adjustments and we now have a completely new size. This is the business model that will allow us to turn the key for CVC. It has just begun and we will be able to harvest much more in the coming quarters. a results conference for CBC Corps. And here we would like to thank all of you for your attendance. Have a good afternoon and thank you for using CORE's call.