Afya Limited

Thank you for joining us for AFIA's third quarter 2022 conference call. Today I'm here with AFIA's CEO, Virgílio de Bom, and Luiz André Blanco, our CFO. During this presentation, our executives will make four looking statements. forward-looking statements can be related to future events, future financial or operating performance, known and unknown risks, uncertainties and other factors that may cause AFIA's actual results to differ materially from those contemplated by these forward-looking statements. Part-looking statements in this presentation include, but are not limited to, statements related to the business and financial performance, expectations and guidance for future periods, or expectations regarding the company's strategic product initiatives, its related benefits, and our expectations regarding the market, as well as the potential impact from COVID-19. These risks include those more fully described in our filings with the Securities and Exchange Commission. The forward-looking statements in this presentation are based on the information available to us as the date hereof. You should not rely on them as predictions for future events and we disclaim any obligation to update any forward-looking statements except as required by law. In addition, management may reference non-IFRS financial measures on this call. These measures are not intended to be considered in isolation or as a substitute of these results prepared in accordance with IFRS. This presentation has reconciled these non-IFRS financial measures to the most directly comparable IFRS financial measures. Let me now turn the call over to Virgílio Ribon, AFIA CEO, starting with slide number three.

Thank you, Ana, and thanks everyone for joining us today. As we approach the end of the year, we can see AFE delivering strong results at GWEN. as I will show you throughout this presentation. So moving now to page number four, let's start with our quarter highlights. Adjusted net revenue increased 25% year-over-year, reaching R$580.2 million, followed by an adjusted BIDAC growth of more than 19% year-over-year, reaching R$228.7 million, with a margin of 39.4%. This lower EBITDA margin, about 190 BIPs below last year, reflects our effort to develop our new growth avenues in continuing education and digital health services. It's worth mentioning that both segments are accelerating the growth pace quarter by quarter and reached 72% and 59% of top-line growth in Q3 over the same period last year. Net income followed the same positive trend of last quarter and reached R$ 321.4 million, a growth of 66.3% year-over-year, with an EPS of R$ 3.39, more than 77% higher than last year, even considering a higher net debt level and the market interest rate level. These results reflect AFIA's great capital allocation discipline on buybacks and M&A in an efficient capital structure. We also reported another great cash flow generation, ended the nine-month period with R$743.8 million, 34% higher than last year, with a cash conversion of 104.6%. Moving to the second row, to our operational updates of the quarter, we have now reached 2.7 thousand medical seats, with the beginning of the four mais médicos operations along with Giparaná campus, an increase of almost 15% year-over-year. Our number of undergrad medical students has reached almost 18 thousand, representing a 13% growth compared to the same period last year. In the continued education segment, we can gladly see another great recover after the pandemic impacts on practical classes, as the business unit has presented a strong organic revenue growth of more than 72% over last year. Once again, AFIA reported great results on the digital health services revenue, which ended the quarter with an increase of more than 59% year-over-year and more than 30% excluding acquisitions, reaching almost R$45 million in the three-month period. The result reinforced the great opportunity ahead in digital services, and it expanded by the strong ramp-up on B2B engagements with new contracts with the pharmaceutical industry companies and the continuous ramp-up on business-to-physician contracts. Last but not least, our ecosystem reached 286,000 active users, a growth of almost 16% over last year. This represents almost 40% of the Brazilian physicians and medical students market. Moving now to slide number five, The successfully concluded acceptance of new medical students for the second half, ensuring 100% occupancy normal of its medical schools, added to the positive trend on the continued education recovery and the growth in digital services, enabled us to reaffirm our previous issue of guidance for the entire year of 2022. In the next slide, we'll talk about how our business execution remains solid, presenting relevant updates within AFIA's three segments. As previously said, beginning this quarter, we have four News Mais Médicos operations, Abaitetuba, Bragança, Itacoatiara, and Manacapuru, along with Uni São Lucas de Paraná campus, all of them combining totally 228 new medical seats to our portfolio. We have reached an impressive number of 2.7 thousand medical operating seats, strengthening our consolidation as the medical undergrad leader in Brazil. Back in the third quarter of 2021, we were hoping to see the pandemic lose its strength. Now, in 2022, we can finally see our students, employees and partners extracting the best from our ecosystem again. After the opening of six new continued education campuses, we can see for the third time this year an incredible recovery compared to last year, with strong intake processes, new courses being launched, and our practical classes boosting again. On our digital services segment, we are proud to see our tools being able to assist physicians during their medical journey, as, at the same time, we continue to further explore the development of our ecosystem, unlocking new interactions and revenue streams to go beyond the physicians, achieving pharma players, hospitals, labs, and drugstore chains. Proof of that is the engagement on the B2B strategy growth, once we have reached, so far, 61 contracts with 40 different pharmaceutical industry companies. And now, moving to my last slide on this presentation, I will show how our commitment to everything we do is being well reflected throughout awards and public recognition. As a reflection of our great results and actions that are being shown to the market, we are proud to share that for the third time in a row, we have won the Anuário Época Negócios 360 award as the best company in the education segment. And along with that, we are also ranked as the top 50 company engaged with an open innovation in the country. We are very proud of these achievements as they are the recognition of the work and passion of our more than 9,000 employees around a unique vision to transform health together with those who have medicine as a vocation. We can find more information regarding these awards on the QR codes at the bottom of the slide. And now I'll turn the call over to Luis Blanco, AFIA's CFO, to give more color on the financial and operational metrics. Thank you.

Thank you, Virgílio, and good evening, everyone. Starting with slide number nine to discuss the financial highlights of the third quarter. It is with much satisfaction that I presented another strong quarter results for AFIA. Adjusted net revenue for the quarter was up 25% year-over-year to R$ 580 million, reflecting the maturations of medical seats and the beginning of the Formais Médicos and de Paraná operations, higher tickets in medicine courses, and the continual education recovery, mainly due to the interruption of the effects of the COVID-19 pandemic. the opening of six new campuses in important capitals of the country, and new courses launching. Once again, the digital segments has also contributed to the revenue growth this quarter, with the increasing of the B2B engagements and the active payers' expansions in the B2P. For the 9-month period, adjusted net revenue was R$ 1,724 million, an increase of 38% over the same period of last year. Adjusted EBITDA for this quarter increased almost 20% to R$ 229 million, while adjusted EBITDA margins decreased 190 base points to 39.4%. For the nine-month period, adjusted EBITDA was 720 million reais, an increase of 29% over the same period of the prior year, with an adjusted EBITDA margin decrease of 320 base points in the same period. The adjusted EBITDA margins reduction is mainly due to the digital segment, mostly in the performance of MedCell in the residency preparatory markets, the expansion of the continuing education segment, which is still maturing the new campuses, and the increase in expenses in the holding and shared service level. Important to highlight the growth in gross profit for continuing education and digital segments in this quarter. reverting the trend observed in the last year. Moving to the next slide, adjusted cash flow generations for the nine-month period was almost 34% higher year-over-year, totaling R$744 million, resulting in a strong cash conversions ratio of 105%. Adjusted net income for the third quarter of 2022 was R$120 million, an increase of 3% over the same period of the prior year. The third quarter EPS increased by 47% year-over-year and was positively affected by the increase in the operation results the decrease of the non-recurring expenses by almost 63% and the execution of the previous buyback programs. Moving to slide number 11 for discussions of key operational metrics by business unit. Starting with the undergrad programs. our number of medical students grew 13% year-over-year, reaching 18,000 students with operational medical seats increasing 15% year-over-year. Due to the encompass of 228 medical seats related to the Formais Médicos and de Paraná campuses as previously said, Considering our organic and inorganic seeds expectations, we expect to achieve more than 32,000 undergrad medical students at maturity. With our net average tickets increasing more than 9% year over year, we have reached R$ 1,978 million of combined tuition fees, up from R$ 1,406 million from the prior year, an increase of 41%. Regarding revenue mix, 77% of these derived from medical school students and 90% from health-related courses. On the next page, I will present our continual education metrics. As said before, we saw another quarterly great recovery in our continual educational segment, with an increase of more than 42% in the number of students compared to last year, reaching 4,036 students, getting closer to the 2020 figures again. In the quarter, net revenues for the segment grew 72%, when compared to the same period of the prior year. This recovery is mainly due to the interruptions of the effects of the COVID-19 pandemic, the opening of six new campuses in important capitals of the country, and new courses launching, as explained before. Moving to slide number 13, I will discuss the digital service operational metrics. On the first graph, you can see our total active payers, which are those ones that generate revenues in B2P. With a continuous growth trend in this quarter, we have reached 190,000 paying users, a 23% growth compared to the last year. As you can see in the second graph, our ecosystem reached 286,000 monthly active users, representing almost 40% of all medical students and physicians in Brazil, as Virgílio said before. Finally, on our last graph, we can see our digital service net revenues for the quarter. which increased more than 59% year-over-year and more than 30% excluding acquisitions. This organic growth is a combination of the start of the B2B engagements, reaching 61 contracts with 40 different pharmaceutical industry companies, and the expansion of the active payers in B2P, mainly in White Book and iClinic. In addition, since the beginning of the year, we started to break down our digital service net revenue within B2P and B2B segments. So, of almost 45 million of the digital service net revenue in the third quarter, more than 38 million come from the B2P and more than 6 million come from the B2B, since the B2B strategy is still humping up. And now moving to my two last slides, I will discuss our cash and net bet position, also giving more color on our cost of debt. Cash and cash equivalents at the end of the quarter were 716 million reais. net debt excluding IFRS 16, totally R$ 1,348 million, compared to the net debt of R$ 1,109 million in the same period of 2021. The increase year-over-year was mainly due to six business combinations and license acquisitions executed during the last 12-month period, payment related to the share repurchase program, investment activities, and net financial results for the last 12 months, all partially offset by our cash flow generation. On the next slide, you can see a table with the breakdown of our gross debt and our total cost of debt, considering our main debts, the SoftBank transaction, other lowers in finance, and account payables to selling shareholders plus other financial obligations. Our capital structure remains solid with a conservative leverage positions and a low cost of debt. This ends our prepared remarks. As we approach the end of the year, even considering the challenging economic and political scenario, we can gladly see AFIA delivering strong results, with a quarter marked by significant increase in net revenues in our three segments. positive EBITDA cash generations and EPS growth, and a consistent business expansion. I will now open the conference for the Q&A session. Thank you.

So our first question comes from Luca Marchesini from Itaú. Luca, you may now talk, please.

Hey, good evening, everyone, and thanks for taking our questions. We got two questions from our side. So first, on MedCell, we've seen another quarter of decrease in the number of active payers. So can you please provide an update on the competitive landscape in the market? And then secondly, the company mentioned that one of the drivers for revenue growth was the start of the B2B engagements. Can you please provide more color on these contracts and its contribution to net revenue? Thank you.

Hi Luca, this is Virgilio. So about mid-sale, we launched our new products in beginning of November. So the rhythm that we are seeing for new enrollments, the volume of intake of this new season, it's much better than we saw in the rest of the year. So we launched the pre-sale on end of September, beginning of October, but the new product release wasn't good. beginning of November. So all the female version generating more leads and the intake that we are seeing after November is much better than the rest of the year. So the expectation moving forward is that the reduction on mid-cell will be lower than we saw in the previous quarters. Besides that, we are combining mid-cell with Pillar 1. So we have another problem. Mid-cell is just to one product under the Pillar One. So the other product, it's moving fast, and we are also offering continual and tech content for physicians to help not only for residence prep, but also for title prep and other type of programs that will support their needs. So we are seeing a better trend on Pillar One year over year, and MedCell turnaround starting on fourth quarter.

Hi Luca, it's Luis speaking. I'll take your second questions regarding the B2B contracts on the digital segments. The main driver on the B2B revenue growth that you see from the third quarter regarding the second quarter are the contracts that are coming from the pharmaceutical industry. This is a strategy that we deploy here on 2022, and it's been very well received by the pharmaceutical industry regarding the access from this pharmaceutical industry to our physicians' users. uh uh we've been able to to to sign uh contracts uh more than 60 contract contracts to now uh uh this year and uh we are providing the the access for these a pharmaceutical industry to the physician base. This is a trend that we see. We are very happy with this growth and we see that we have a very great room to achieve regarding this kind of service. Just to add, Luca, this is Virgilio.

We just passed what you call the phase one on the B2B contracts. The first quarter we launched the software was a kind of landing, expanding type of contract. So it was more like a service that we have to deliver a short period of time. So our effort right now is not only increasing the number of clients, the pharmacons that we are serving, but also a type of recurring revenues that we can serve from a longer time or for a longer period. Virgílio Ruiz Teixeira Arreola- This type of services, so we are moving on that direction growing a lot, not only the number of contracts, but the book value that we have for each sale opportunity on our pipeline, so this is remains our the biggest bet for the following year and. Virgílio Ruiz Teixeira Arreola- You see, good numbers coming from the beach will be from the following quarters.

Carlos Zarazaga- that's very clear, thank you, Virginia and Luis.

Our next question comes from Fred from Woffa. Fred, please go ahead.

Hello. Good evening, everyone. I have two questions here as well. The first one, I just want to understand the difference between the net income growth and the EPS. You know, we have here 94 million shares to Q21, 90 million shares here. Maybe we don't have the right information. Maybe you're considering Beltersman as a repurchase program. That's why you have the difference in EPS. So I just want to make sure we get that. This will be the first one. And then the second one, if you guys could just provide us at which level of AFE Digital you are, right? At least we understand it's almost like a startup. So you build a portfolio, eventually you start to scale. Then eventually this scale leads to dilution of costs and higher margins. So if you look on a three, five year window at which level of AFE Digital we are right now. Thank you very much.

Hi, Fred. It's Luis speaking for government APS. You're right. We have considered the the treasuries, the shares that we have in our treasury that totals amount of 3.7 million shares that we have regarding the three buybacks that we've done to now as the metrics that we use for these report is the mean in the last 12 months. So as these shares are more than 12 months, then the effects regarding the dilutions, the increase of the EPS numbers regarding the increase of the shares that we have on our treasury, these amounts comes up. So right now we have approximately 3.7 million shares in our treasury. Regarding the second question, I'll begin with that and then Vigílio can connect regarding the ambitions that we have on the digital segments. We see that the digital segments can achieve the 1.2 billion reais as net revenues in 2028. This is our goal right now for 2028. We see that the B2B is where we can get most part of this growth, providing access mainly for the pharmaceutical industry, providing demand for the providers, and provide efficiency to payers. this is our plan the first phase of it is the launching of uh the service of access for the the pharmaceutical inductions what we we we are capturing the the revenues right now but we see this uh uh uh digital seven segment as this opportunity of 1.2 billion reais in 2028.

Hi, Fred. Just to add a point here. So during 2022, I think the main focus was to complete our ecosystem, our sixth pillar. And we did that with the last acquisition of Glick. before seeing our sixth pillar. Having said that, we also saw during 2022 the beginning of the monetization on the B2B contracts. We are going faster than expected on that. We can check also on our figures on top line and also gross margin ramping up and ramping up very fast. So this is a beautiful opportunity in terms of leveraging moving forward. So as Blanco said, we are aiming to have 5% of this aggressive market by 2028, and we are in a good trend to reach that. So moving to 2023, we didn't release any figures to 2023, but for sure the results coming from both segments will be stronger. when we deep dive on continuing education and digital service, when you compare year over year, will be a much better field in terms of top line and also in contribution margin for the entire business and for AFE.

Perfect. Very clear, Virgílio and Luiz. If I may just do a follow-up, and I do apologize, but on the same topic, when I think about capital allocation, right, understand that the AFE Digital still takes some margin from the consolidated business. So, How do you think about it? I mean, what kind of metrics you use? You know, now is the time to accelerate on a digital and pressure a little bit more, more margin. Or I don't want to go to a margin below a certain point. And then we need you to be careful here. How do you think about this? This trade between higher growth eventually on a digital and pressuring margins on the consolidated business? Thank you. Okay.

Regarding capital location itself. I would start saying that we see a completeness of what kind of service we want to serve right now. So the major point regarding capital locations right now is is the amount that we're going to invest in new solutions, in new service that we put within the product. So we see in terms of capital locations itself, it's more... uh business deployments of new service new products inside the existing products so we're going to spend with uh organic capex i would say uh on that regarding the the the the impact that we have on our on our operational results regarding regarding uh the digital itself we see that uh 2022 it's uh it's an year that we we've got negative Sorry, guys. One starts, it starts to repercussions right now, besides the office. Sorry about that. But regarding the results during 2022, we face a negative margins that comes from the digital segments. And regarding the 23 ahead, we're going to talk with a little bit more next year, but definitely 2022 was the lower point with the lower margin, the negative margins. And then we start coming from the positive side as the growth come and that we gain scale and we do not make more business combinations. We start to grow, to do the business development inside of an existing product.

Fred, if I may add here, just a rule of thumb. Between 2020 and 2022, we had a lot of needs in terms of campuses to improve our campuses from the largest acquisition and also launching the Mice Magicals and several new graduate campuses that we are working and operating under the IPMED grant. uh so moving uh to the end of 2022 we have our categories close to 11 of our net revenues so moving to 2023 all these real real estate requirements that we we have uh the previous years i think it's much lower so we expecting to have actually a lower maintenance cap it's recurring capex uh on 2023 that would be something to one to two percentage points below uh 2022. it's a quite positive in terms of uh cash flow and the the great majority will be allocated as blanco said in product development to fulfill the roadmap of our six pillars on the digital health perfect super clear thank you virgil thank you luis

So our next question now comes from Marcelo Santos from JP Morgan. Marcelo, you may now talk.

Hi, good evening. Thanks for taking my questions. I also have two. I think the first question ties a bit to the previous one. You said that you should have the lowest point of margin in the B2B in 2022. Could you broaden a bit the discussion on margins? Could you please discuss a bit what are the building blocks of margins in 2023? What are the the tractors and the supports of margin that we should see in the year. That's the first question. The second question is if you could comment a bit on tuitions for the first half of 2023 intake cycle, given that you probably already set your prices. So what could we expect in terms of tuitions? Thank you.

Hi, Marcel. It's Luis speaking. Regarding the margins for 2023, we didn't release the guidance for 2023. Right now, we're going to release in the beginning of the year within the 2022. There's the results, so we can comment more on 2023 guidance margins over there regarding the tuition fees as we usually do. We put the new prices for new students and for accessing students during September and October. uh regarding uh the the the our core business regarding the the medicine students uh uh most of the the the the units had the ply uh uh readjustments of seven point five percent for existing and for new students. So we can expect an increase of 7.5%. Some units we had a little bit behind that, some units we have a little bit more than that, more on the new students, but 7.5, it's a number to consider for 2023 price increasing.

Marcelo, just adding on the first question about the margins, it's analyzed our three different segments. Under the undergrad segment, we will still mature in our operation. Unigran Rio is our last and bigger position. We are excluding units that are still pending the closing, expected to be beginning of January. But considering that scope, we will see some gross margins opportunity and Leveraging our operation as underground, you still have some opportunities in terms of margin. We just implemented push all the transactional activities to our share services rolling out system. So we have some efficient that we can have from underground here and the maturation from other campuses. but the undergrad operations are very mature, so the opportunity in terms of overall margin is lower. Moving to the other segments, we can see that graduate programs and continuing med education will grow very fast year over year, so the composition will see much more revenues coming from the graduate programs Then we have in 2022, but we still with lower margins than the undergrad so the mix will be better on the graduate problems that will grow faster, but with lower mind so in terms of average. can have a negative impact coming from that. The same dynamic we are seeing on the digital, because digital, as when you take a look just for the segment, will be much better in terms of margin and gross margin. But by the bottom line, we still have a lower margin when you compare to the core undergraduate business. So having said that, when we put everything, we'll still have the margin closed where we are operating, but we didn't release any guidance where will be our range during 2022. Okay.

Perfect. Thank you very much. Very clear.

So just a reminder, if you want to ask a question, please raise your hand. Next question comes from Vitor Tomita from Goldman Sachs. Vitor, go ahead, please.

Hello, good evening, all, and thanks for taking our questions. Two questions from our side. The first one is that there seems to have been a slight decline in non-medical healthcare students in addition to the reduction in non-healthcare students. Could you give us some more color on that and on whether the decline is related to macroeconomic or competitive headwinds? And the second question on our side would be about the B2B access features that you are launching. Do you have any initial sense on how physicians are receiving their changes from their end in their daily usage of digital solutions in their usage experience now that there are B2B access features interacting with them? Thank you.

Thank you, Tomita, for speaking here. Regarding the drop that we have on non-medical health, it's regarding the closing of one distance learning course that we have implemented in one unit that we closed this course during the second semester. It's a course that had a small revenue and a very small margin contribution, so we decided to close to to finish it on the on the on here on the the the end of the first the first semester, and some roughly it's it's something about 3,000 students that we have on all these distance learning forcing in health. uh regarding the the second uh questions uh regarding the b2b features we we see that uh we can uh provide the connections between the the the physicians and the pharmaceutical industry uh uh this is being very well uh received by by by our physicians uh uh and uh uh we can and and because of that that should be very uh very well accepted we can move uh with the expansions in the number of contracts and the number of pharmaceutical companies that we have under our portfolio uh as virginia mentions we have these uh land and expenses strategy when we uh uh provide uh uh uh our service for a specific line of product within a pharmaceutical company, and then we expand within different line of products inside of the same pharmaceutical companies. We've been doing that and providing this kind of service and the physicians are are good with these kind of connections that we are providing.

Very clear. Thank you.

Our next question comes from Marius Cepeda from Credit Suisse. Marius, go ahead, please.

Hello, Virgílio Blanco. Thanks for the time. I have two questions from our side. The first one is about the recent acquisition of Uniti. I understand that the closing is, as you said, is forecasted for next year. But anyhow, how do you plan to make the capital structure to absorb such acquisitions? So are you planning on more debt? What is the capital that you are planning to cope with these acquisitions? And the second, the second question is about the prep courses MedCell. If you are some way trying to remodel it or even trying to rethink about the tickets, any kind of product redesign that you were thinking now that we are approaching the intake for the rest of the year. Thank you.

I will start with that and Vigílio will make some additional points. Regarding units, we are planning to increase that. We are right now negotiating in the final negotiation of this increase in debt to finance the down payment that we have for the unit deal. As you mentioned, we expect to close that in next year. but we didn't close the financial debt of it right now. We are very, very in advance, but we haven't closed it until now, and we expect to reach the final agreement in the beginning of December. Regarding MedCell, we started with that. We've made a complete transformation, a complete re-engineering regarding MedCell. We changed the product itself, we changed the price, we changed the way we adverse this product. and the way we package this product. Starting with the product itself, instead of having a very complete product to fit all kinds of students, we kind of focus it for each one of the institutions that the student wants to pass. We exclude the physical book from the value propositions. Right now, we offer the physical book as an add-on, so the basic package is an e-book of it. Instead of providing all the contents for the students in the first time, we made an assessment of these students and we impact these students with the contents that he most needed to get the minimal grades that is needed for the institution that he wants to pass for this specific subject. If in this assessment, the first assessment, he is performing well, he will be impacted by a very short content and then go to the simulations, the test simulations. And if he's not very well positioned with his grades, so he's going to be impacted by the content that is needed for him to get improved. So we made these kind of changes in product. In terms of pricing, we had increased pricing. The pricing for the 2022 collections, it was around 4.5 thousand per year, per one year. and we increase this pricing for about uh 7 000 uh reais so uh we increase the pricing uh uh for for for the product regarding the the way that we sell the product we we we we we give more more More more protagonist protagonist for our teachers. We've been more on the, the, the, the social networks instead of, uh, of, uh, of Google add-ins. But we, uh, social weddings with, uh, a free will context inside of our, our social networks. And last but not least, we are combing the products to offer what we say that the Pillar One offer. Instead of just offering MedCell itself, now we are offering MedCell combining with mentoring and combining with some features that come from CardioPapers. So we are calling that and offering to our students. And these kind of offers are being very well received by these students. But it's a turnaround of all these offers that we put in place right now.

Maurício, just to add here, just remember that we acquire cardio papers in Alenda Medicina. In those acquisitions, we have many expert physicians that went to entering on our pillar one, helping us to review our product and our offer to the market. So they are influencers, they are experts in each area. So we, as Blanco said, we are giving much more putting our professor our teachers in front of of the student in tailoring the content for each type of residence for each type of problem that they are going to apply. So we have much more experts tailoring the content that help us to change our price and also to revamp our problem. So this is in the very beginning. So we have the Black Friday. That's a very strong process during November. And since we launched, we are seeing very good figures in terms of numbers. But it's still in the beginning where we are going to March, April next year to have our final results from this new season.

Oh, great. An additional compliment to my question. So by remodeling the product, by reengineering the product, do you expect this to change the way you sell and recognize revenues of it? Should it be more continuous now? How do you think about that?

didn't change that uh uh the remodeling didn't affect how we see how we we we capture the the revenues uh of the product so you're gonna keep seeing the the the the seasonality from the fourth quarter in the first quarter uh from from from from itself that's very clear thank you thank you thank you thank you maurice

So with no further questions, I would like to thank everyone once again for joining us, and we hope to see you again in our next conference call. Good night.