Braskem SA ADR

Ladies and gentlemen, and thank you for holding. Welcome to the BrazFam conference call to discuss the results of the second quarter. Today, we have with us Mr. Roberto Simões, the company's CEO, Pedro Trepas, the CFO, and Pozana Abonio, the investor relations director. We would like to inform you that this event is being recorded, and during the presentation, All participants will be in the listen-only mode. In doing this, we will begin the question and answer session, then further instructions will be given. Should any participant require assistance during this call, please press star zero to reach the operator. Both the audio and slideshow for the presentation are being broadcast simultaneously by a webcast and can be accessed through the website www.spam.com. Please bear in mind that the forward-looking statements that may be made during this conference call regarding to the company's business prospects, operating and financial projections and polls are based on beliefs and assumptions of the company management, as well as on information currently available to the company. These forward-looking statements are no guarantees of performance. They involve risks, uncertainties, and assumptions as they refer to future events and depend on circumstances that may or may not occur. General economic conditions, industry conditions, and other operating factors may affect the company's future results and lead to results that differ materially from those expressed in the forward-looking statements. I would now like to turn the conference over to Rosana Abollo, the Investor Relations Director. You may proceed, ma'am. Good afternoon, ladies and gentlemen, and thank you for participating in Braskem's earnings conference call. Today, we will present the results for the second quarter of 2021. Let's go on to slide number three, where we will speak about the petrochemical scenario in the quarter. In the second quarter of 2021, petrochemical spreads continue to improve. This pandemic is mainly explained by a healthy global demand in the period and supply constraints in the United States following the UD winter storm in the country's Gulf Coast. In the second quarter of 2021, the company had recurring results of 1.8 billion reais, 198% higher than in the first quarter of 2021, representing 12.69 reais for common shares and class A shares. For the entire year until the end of the quarter of 2021, Rustam had a net profit of 9.9 billion reais. I would like to highlight that in December 2020, the company had accrued losses of 4.5 billion reais. At the end of July 2021, the company reverted to a profit of 5.4 billion reais. We go on to the next slide. Slide number six. shows the highlights of the Brazilian operation. In the second quarter, the utilization rate of crackers in Brazil was 76%, down 6% to a point vis-a-vis the first quarter of the year. This lower utilization rate is explained by the scheduled general maintenance at the ABC Petrochemical Complex in Sao Paulo. In the Brazilian market, prices have decreased in relation to the first quarter of the year due to the normalization of demand in the region but still at healthy levels. On the other hand, exports increased during the quarter. The recurring operating result for Brazil was of around 1.1 billion, but was up 20% above the first quarter of the year. We go on. Next slide will speak about the latest developments for the tax regime for the chemical industry. the special tax regime known as RAKE was created to improve the competitiveness of Brazil's chemical industry by reducing the fiscal fees tax rates levied on purchases of basic petrochemical feedstocks. In March of this year, the federal government proposed to terminate RAKE through a provisional measure. After discussions and modifications both in both houses of Congress. In June, it was passed by the federal government, and this was sanctioned by the federal government and converted into federal law 14,183. The law provides partial reductions of the rate in four years until the special regime is fully terminated in January of 2025. We will speak about the geological event in Alagoas. The charge on the left presents the provision balance related to the geological event in Alagoas at the end of the second quarter. The balance registered was 7.7 billion reais, and during the quarter, Breskin reversed provisions in the amount of 72 million reais. The graph on the right presents a disbursement schedule of the total balance of provisions of $7.7 billion. 58% was recorded under current liabilities and 32% under non-current liabilities. The company can now predict with certainty that future developments in respect of this matter or its related expenses, and the cost incurred may be different than those currently estimated or provisioned. Still speaking about the geological events in Alagoas, we will speak about the new allocation programs. Brunskamp continues to offer financial compensation to the families living in the Ritz area. The number of families allocated was 15,807, which means 96% of families in this area have been relocated, reinforcing the company's non-negotiable commitment to allow families to live in safe areas. The number of financial compensation increased by 50% with an acceptance rate of the proposals that needed the naming of high levels. Regarding the payments made under the scope of the program, about 1.2 billion Hais had been disimbursed until the end of the second quarter. Now, these amounts were considered since the beginning of the program. We go on to slide number 10, where we present the main highlights of the United States and European operations. In Europe, the capacity utilization rate rose by 20 percentage points. In Europe, the utilization rate increased than in the previous quarter. due to the rebuilding of inventories and meeting the demand in the region. In the United States, the sales volume in the quarter grew by 14% compared to the prior quarter, setting a new quarterly record. It reinforces our leadership in the U.S. polypropylene market. The segment recurring operating results in the second quarter was $493 million, 56% higher vis-a-vis the previous quarter. In the next slide, we will speak about the highlights of the Mexican operation. In Mexico, the capacity utilization rate stood at 58% in line with the prior quarter, reflecting the highest supply of ethane by Pemex in June, which was partially offset by the unscheduled shutdown due to isolated instability and power supply to Braskem-Aideza. The sales volume for the quarter was 155,000 tons, a growth of 15% when compared to the first quarter. The segment's recurring operating result in the second quarter was $200 million, a growth of 113% when compared to the prior quarter. We go on to the next slide to speak about the company's cash generation. In the quarter, Breskin recorded positive operating cash generation of around 1.5 billion reais. The main positive impacts were the strong recurring operating results and the monetization of Peacekeeping's cash credits in the quarter. These positive impacts were partially offset by the negative variation in working capital and higher income tax paid. We go on to slide 13 to speak about the company's progress in reducing the gross debt level Given its robust cash position and strong cash generation, the company completed several liability management operations in the second quarter, totaling $643 million per day reduction. In the first half of the year, Braskem reduced its growth debt by approximately 16%, which represents an amount of $1.3 billion. Additionally, Bras King also concluded in July of this year additional operations to reduce its gross debt of around $355 additional million. As a result, the total deduction during the year has obtained $1.7 billion. Well, we end up doing work and continue to maintain a very long-term maturity profile and a strong liquidity position with a maturity concentrated in the long term. The average debt term was around 14 years. Now, the current liquidity position is sufficient 78 months. It is important to highlight that in May of 2021, the risk rating and usage rating upgrade inductees out went to positive, which reflects the company's permanent commitment to maintaining its liquidity position and cost discipline and to reducing its leverage ratio. Now, let's go to slide 15, in which we will talk about corporate networks. With the objective of being reassigned as an investment-grade company, GRAS can continue to reduce its corporate leverage, reflecting its solid credit metrics, the leverage ratio of its dollars. And in the quarter at 1.1 times, this is the drop of six times in the last several months. We would like to highlight it as the lowest leverage ratio presented by the gain in history and the relevant achievement for the company's credit metrics. Well, the thing is that it maintains a robust cash position and a very long debt maturity profile and is committed to efficient capital allocation and cost discipline to be reassigned as an investment rate company. Let's go to the next slide now. It is important to highlight on this slide that the main factor and a lot of the rating agencies, the company has delivered important progress regarding corporate leverage that can continue to reduce this leverage ratio, which in the second quarter, which is the lowest level ever in terms of making it a strong liquidity position, but can make it a quarter with a robust cash position of $2.3 billion. This is above the minimum established in the financial policy. Barstain also continues to deliver consistent cash generation through the cycle in cash for $2.1 billion during Q1 and $1.2 billion . It is important to note that the company remains committed to capital allocation and . to be reassigned as an investment-free credit company. Now we will talk about the transfer for that .

Already not.

Currently, in addition to the recurring annual gains of $147 million in Stage 4, March, that's in the state of Michigan, Stage 1, 2, and 3 that will generate recurring annual gains of $292 million total, $440 million until 2023. I'd like to highlight that the company's previous record annual gains of around $140 million. A new initiative . Now on slide 18, we will talk about highlights in regarding . I used to be involved at the . Now, the social dimension recognized for . in recognition of recognizing the efforts of companies that promote the culture of gender equality of women and the recognition of the results of the equality and inclusion program in 2020 marks the 30% and leadership in the economic dimension, but it's important to advance compliance and governance practice. And the second folder was certified by the ISO 37001, an international standard that is done to provide anti-bribery management for the resource, and commitment to always I think there is a lot of action to be done. For example, at the general meeting in about July, working up to the committee and to the science committee, which was held by quite a number of members that were appointed by a list selected by the next time. Here, we want to the innovation and technology problem. At the end of July, there were 120 projects in the program that were $2.4 million in D.C. And out of these problems presented environmental impact. Until March, there was a relevant contribution of new rates, and the results of this company represent 15% of On the next slide, we will talk about the petrochemical scenario 2021 and 2022. Based on the latest forecast disclosed by independent consulting firms, EE and PBC spreads are expected to remain at some level One is 2022. The highlight is the spread of folic acidase, which are expected to remain at levels above the uptick of the petrochemical industry. On slide three, we will talk about the some scenarios for folic acidase in the similar way to the expedition protein, and you will see that you saw in the previous slide. External consultancies are projecting found peak stress for 2021 and 2022, especially in the U.S. for which forecasts are falling for spreads to widen the third quarter of the year. On the next slide, you will see the short-term perspective for Brazil It is expected higher essence production and normalization operations in the Cracker Navy in terms of sales volume and increase in total sales volume is expected with the maintenance of the prioritization strategy for service-resilient South American markets. three massive stretch will remain at levels above the industry up cycle in contrast to spreads for bp and pbc which are expected to narrow in the period in the ufc outlook for pp production and sales is to remain stable in relation to the second for the pp property spreads in the country remain at some level means we do to continue growing the demand and bp in the region In Mexico, the capacity utilization rate of production provides an expectation of higher from the U.S. Resale logging should increase due to higher availability to product . In Mexico, levels in line with the previous order. Now our next slide. In this slide, we can note that Ruskin remains as an interesting investment opportunity in the global petrochemical sector. Although Ruskin has achieved important advances over the recent period, its multiple remains discounted compared to its peers. We would like to highlight that Ruskin is a global company with characteristics similar to its peers in the U.S. with a well-diversified seed stock profile, leadership position in its market, amongst others. Now, by 2016, to conclude today's presentation, on the slide, we would like to recap the company's main priorities for 2021. The two main priorities are concluding that processes related to the deal, logical events in Alagoas, and reliable supply to . And we continue to make important advances toward resolving both of these issues. can also remain highly committed to its financial health and to the efficient allocation of capital with the objective to be reassigned as an investment-grade company. Another priority is strengthening public and reputation. and innovation and digital transformation. The company's priorities are improving the effectiveness of its innovation action and accelerating its digital transformation. And last but not least, Brooklyn continues to make progress in implementing its ESG commitment with the goal of becoming an industry reference in ESG. Lastly, we want to reinforce That's ACR, and we'll always be a key focus on breastfeeding operations as a perpetual and non-negotiable value of our strategy. That concludes today's presentation of breastfeeding results for the second quarter. Thank you, everyone, for your attention. Now let's go to the Q&A session. Ladies and gentlemen, we will now proceed with the Q&A session. For investors and analysts, if you have a question, please press star one on your phone. If your question has been answered, you can withdraw yourself from the queue by pressing star two. Please pick your hands up when posing your question so we can ensure optimum sound quality.

Please hold while we pull the questions. The first question from from JP Morgan.

Hey, good afternoon, . The first question refers to your capital allocation. As you showed in the presentation and referring to your cash, you seem to have a very good outlook. you have accumulated profit, which is quite high. Therefore, the natural question that emerges is what should we expect in terms of dividends for the second semester, which is the discussion regarding this. The second question, you refer to the United States. and the situation that is happening there. There was an isolated event. If you have any plans and how are you going to work with the market in reference to the United States, and what are you going to do in terms of arbitrage? Good afternoon, Ricardo. Thank you very much for your questions, actually. When it comes to capital allocation, as you mentioned, of course, it is necessary to think about higher dividends and continue on with our leverage policy. Now, we have made a decision that states that the payment will be below 2.5%. This will enable us to think about dividends that will be above the minimum rate. And at present, we are at 1.1, which in truth is very low. It is perhaps the lowest in our historical trend. Therefore, it is natural to pay out dividends, something that we have been doing. And I believe that it would be reasonable if the scenario continues on as it is to once again revise this issue. We have as yet not made a decision. Once again, this is something that we are discussing. And once we come to an opinion, we will disseminate it. Regarding the price of PP, this mismatch comes about for a certain reason. The market there is somewhat weak. Because of some issues related to the pandemic and to other issues in Asia, for example, we have a greater availability of BP. And what we are lacking are containers to extract this from the area. And in the United States, we have the situation where the market is quite balanced. And the prices, of course, will reflect this situation. We base ourselves on market prices, of course. The market is in a situation where the prices have increased and we're, of course, taking the most of the advantage of having higher margins in the United States. The market has become regionalized in terms of prices. Brazil, once again, is still where it was, but the United States and others have taken off. They have become unattached from the market prices. So we see in a scenario that while it lasts will be quite positive, and I do believe that it will endure until at least the end of the year. If there is a recovery in this, perhaps the price will increase. It depends a great deal on the supply and demand dynamic. And it all will depend a great deal on the logistics outflow that will happen in North America. Now, you have come up with a provocation that we shouldn't look for markets that are more connected to the United States. Now, what we have assessed are sales from Brazil to Mexico. We export from Brazil to other regions, and this has been included in our sales and operation methods. We include all of the possible regions, and we are revising to see where our exports will go. The great priority, of course, is the domestic market, but regardless of this, in Mexico, We do a reference with the United States. We have no BP contract in Mexico. We have assessed all the possible opportunities Once again, it's a supply and demand dynamic that has become regionalizing. Of course, we have to focus on the supply part, and we do believe that this will continue to exist for some time. And when it returns, we truly do not know what will happen. Thank you very much, Pedro. Thank you for the response. The next question from from Morgan Stanley. A good afternoon and congratulations for your quarterly results. I have two questions. The first referring to cash generation. At the beginning of the year, we have a significant working capital and good cash generation. I would like to better understand what is happening with your consumption of working capital during the year. We still have very high spreads, and I think that they have reached a peak during this semester. My second question I would like to better understand what is it that motivated that very timely shutdown in Mexico? What is happening with that instability in terms of electrical energy and when you will have a resumption of the production there? Thank you, Guillemi, for your questions. When it comes to cash generation, as you mentioned, We have had important investments in working capital during this quarter. Of course, this is a fact, and Hosanna alluded to this in the presentation. As we have published several times, we have a feedstock management policy, and the feedstock that we import we are able to sustain in the market with terms of up to 160 days. Historically, therefore, we have making the most of these lengths in terms of payments that our suppliers have offered us. What happened is that we are in the situation of a very strong cash generation, perhaps a cash surplus, We have paid off several debts to decrease our exposure. But evidently, if you pay cash, you will obtain a discount. Therefore, we took the decision to look for side payments. There was no need to lengthen the payments. we decided not to lend some payment to suppliers. We have reduced the payment term, and this has a one-off impact on our working capital. The second point that was relevant, or perhaps the most relevant of the three points, is the second, and it refers to the price of resins and seed stock or raw material when we carry out our procurement When we make up our feedstocks, if the price increases, this will demand greater working capital. In the third place, we had a refurbishment of stocks. As you will recall, last year we had a great deal of sales, and the sales have been strong this year as well as last year. I will refer to Brazil. We sold more than 1,600 times per quarter, and in the Second quarter, we sold 1.5 million tons. When we looked at this curve, we decreased our sales somewhat, and we were able to restore some of our inventories that were somewhat below their normal level. And this is a little figure that is included in this calculation. And, of course, there could be the possibility of absorbing all of these working capitals who are operating cash to avoid any sort of indebtedness. And, of course, this is very important and would be a good sign of Breskens' sound financial position. These were oscillations in the electric network. in the National Electric Network in Mexico, and this caused a failure on our automation emergency system. It is the initial automation of our complex. And we had to stop. It was an emergency shutdown because of a lack of And this triggered the shutdowns of the complex. The emergency shutdowns always have a big impact because we have to carry out some type of maintenance. And this well-generated production lost during the month. I can't remember if it was May or June, but it was 16,000 tons of production. that were lost. Since June, we have been running daily with no production prescriptions because of this event. We still have a feedstock restructure, but the event took place in May. Yes, I just received this information. Therefore, it was an isolated event. The impact was, well, 15,000 tons in production, but this has already been recovered. Thank you very much. Our next question from .

Good afternoon.

Hello. On dividends and capital allocations, I would like to see a number of points. You mentioned that you would pay something above the minimum you would need a leverage before two times, 2.5 times. But we are going to come back to normal and this is something that you mentioned and that the the leverage will increase at a very low level. But I would like to understand that in addition to your leverage target, is there an optimum level of growth that is a little bit longer? So what are your priorities between paying out dividends and paying out dividends? There's some type of breaking point here. Well, this is a good question, David, because we can discuss our financial strategy and how we see our corporate leverage. If you've seen our history, well, our net debt is between $5 and $6 billion. We have been growing. It's providing an excellent result with 89% of occupation rates. So our margins are very high in the U.S. and very attractive now. We could even explore the higher net debt if we have that exchange between $5 and $6 billion. And if you see this level and how policies, cash management that is highly conservative, I would say that a gross debt up to $7.5 billion, give or take, would be something reasonable. And I believe that we can coexist with this with no problem. You will see that there were moments where we exceeded the 8 billion. But if you see our history, the 7, $7.5 billion, it's okay. And we can coexist with this level. Now, we ended the quarter with a gross debt of $6.8 billion. So it is below the level that I consider reasonable. We paid out $350 million in debt. And in July, after we paid these debts, we have a cash position that is slightly lower above the optimum point for that scheme. So when you see $203 million of surplus of cash and the increase of our leverage of about $1 million, I think this is an excellent structure of capital, and this optimizes our equity. So we see dividends on one side because we want to pay out our shareholders because for three years, they haven't received dividends in high time. They received their dividends and the optimum capital structure, so we are under, so we're not under leveraged. So you can see that there is space here. There's a lot we can do here, lots of maneuvering. Next question from . Thank you, and congratulations for your results. Two questions. Number one, after seeing your presentation, slide 25 drew my attention, and you showed that . and being a very important asset in terms of investment. And you showed that. And its multiple remains is kind of compared to its peers. So is there something that the management could do to unlock the value perception? And is there something in the sales process to think that that chain will be sold as a whole or separately? What could you tell us in terms of value perception My second question is you discussed this in other opportunities, but is there is a private investor?

If there is something that could be done jointly,

Are there any potential opportunities or synergies to carry out joint businesses that could give you some type of additional return? Good afternoon. It's good to talk to you, and thank you for your question regarding the Pierce-DeSalle Well, you can just see the figures, and the figure shows us that there is a discount. This is the fact that the discount was lower in the past. Ten years ago, Breskin had a discount, but it was 10%. And Breskin was a company that was 100% Brazilian, 100% based in Naphtun. We diversified. And we went after other sources with international exposure, with exposure to other types of feedstock. So, our growth in the past year, in my view, should have diminished this discount, and the discount today is 40%. We believe that this discount is not reasonable. I believe that as the market caught up during the first quarter and the beginning of the year, there was a higher discounting of five times the S.A. time. Now we are seeing the... What happened was the peers multiple dropped. We continue believing that discount is not justified. Our logic, we follow a solid logic, and we are strongly inserted in the petrochemical industry. I have never heard these times because this is a highly experienced business that has a strong dimension. So when we see our figures and we compare it to our history, this does not make sense. And perhaps you know better than I do, there is an uproar of the investors. There was a rally of 150% during the first quarter. Is this still going to go up? So perhaps this is what is happening. We're trying to see why we have this distorted, exaggerated perception that we want to show the market that we are a modern company. We have the best petrochemical producer in the world. In terms of safety, we are the best in the world with a great potential of growth. and recycling. We're thinking about the future. We're thinking about recycling. That is important. Black market is challenging and something that provides growth and we are positioning ourselves properly and also renewables. We have a new platform. Nobody has what we have and the potential of growth is overwhelming. So yes, the market is Well, we have to show the market that we have all the reasons and for not having the discount that we have today. Regarding ELAM, well, we know a great part of the team that is assuming ELAM, many of them used to work here in the past. These are people that are very competent. And we're waiting for the right moment to talk to them. But we believe that it's still not the moment. It's not the moment to embark in a deep conversation, but when we find the right moment, we will sit and talk to them and try to find synergy. But we already have an idea. We have some ideas, but of course, we want to listen to their ideas and I believe that they're being a grateful mentor in the more eastern area. Thank you. Thank you very much for your response. The next question is from Barbara from JP Morgan. Good afternoon and thank you for taking my questions. I know that you have a goal for the final amount so that you can reduce your leverage. Thank you. Hello, Barbara. How are you? To be very frank, we do not have a goal for growth debt we do have an in-house goal for the net debt but of course this is not made public it's simply a reference to help us in our financial management the we have uh communication with the market when it comes to dividends because this is very important and our figure for leverage all uh In dollarized terms, the figures that we gave you are simply a bench work for you to think about what would be a comfortable level for us, a comfortable limit for us. Thank you, thank you very much. We would like to remind you that should you wish to pose a question, please press star one. Please wait while we pull our questions. Once again, should you wish to pose a question, please press star one. Please wait while we pull our questions. We have a question that came into the chat from Ben Ivinson from Nova Scotia Bank, who asked, strategically, we are interested in investing more in the regional diversification, or if there are some chemicals where we would like to have a greater exposure to vis-a-vis what we have at present. Ben, thank you for the question. I would say the following. The regional diversification has been an important part of Braskin's strategy. We have invested considerably outside of Brazil in greenfield projects in Mexico, the new BP plant in the U.S. These are our largest investments abroad. We have also invested in Brazil during that period in PBC, in Bahia. We are currently undergoing an expansion in the south of Brazil. We have balanced our investments both in Brazil and outside, but the magnitude, of course, of investments in Brazil was much greater than abroad. This is because of our diversification logic. we are interested in continuing to follow up on the Asian market. We have a good platform in the Americas, a significant operation in Europe, a sales operation that is greater than the industrial one, and concentrated mainly in Holland and Germany, but extending throughout Europe as a whole. And What we have that is proportionally smaller is Asia. We have an office in Singapore and another in India. We have our eye on Asia, and we consider it a new potential source of investment if we think of the renewable products. Asia is very important for that, and because of this, We're thinking of both of these avenues for growth, a growth in renewables and PBS. And Asia is very important when it comes to this product. And along with this, a regional diversification based on products that we already have, but where we can foresee a significant growth potential, especially in Asia. When we speak about other products, we are always assessing new products that come about, an acquisition, something novel. The new in-house processes of technology and innovation are mainly focused on renewables. We're speaking of new products. and this is the type of development that we are seeking but we are open to partnerships in the regions where we already operate south america and we're open to different products it will depend on different opportunities the strategy is not to diversify just to diversify we want to value what we have now, but we will be looking at what is available. If you look at the more obvious projects that pre-hug in Brazil, in the United States, this is what is of interest to us. We foresee great growth in new products that will be very much linked to renewables. Our next question comes from Barbara from JP Morgan.

If you allow me a follow-up, please.

Your sale of assets and the controlling company, which is the vision that the company has in terms of the sale of assets, if there's any assets that presently would not be deemed strategic that could be put up for sale. If you could give us more color on this, please. Barbara, thank you once again for another question. I'm going to put that question in the context of what we observed last year. In the second semester of last year, we were at And as you know, we were working with all the possible opportunities to reduce our leverage. We included the sale of assets in these possibilities. Now, the assets that we understood that in the scenario of deleveraging, we could disinvest We thought of that equation value and the impact on the company. And of course, we were not able to come to a conclusion. All of the Breskin assets internally are for sale. It all depends on the size of the check and the pressure that they bring to the table. And well, this is how I would state this. Press Games does have a commitment with all of our shareholders, and we're going to do what will be best for all of them. Now, if we receive an amount that we will think that is lower than the check that has been put on their table, as a natural part of the business, of course, we will assess this. Now, on the other hand, if this doesn't happen, There is no request from anybody to sell assets at present. We're supporting the process, but we're thinking of escaping breast cancer, not selling off parts of breast cancer. This is the way that we are thinking, and this is the guidance that we have followed. Simply to complement this, while this discussion is being held with the shareholders at Brass Camp, we continue to seek for all possible business opportunities to create value to continue to manage our company.

This is the greatest value. That is very clear, and I have a last question. A follow-up perhaps on the appropriate level of debt.

Obviously, the present day cycle will change going forward. Which would be the appropriate debt level if you could remark on this? We are comfortable because if you see our metrics, our metrics today are fully aligned and we're comfortable with them and we believe that the investment is great and we see our metrics and figures. a level much, much better level than any investment rate company. So, we believe that this should be recognized by the rating agency. We have been dialoguing with them, but at the end of the line, they're the ones that decide. So, we see the figures. We see the facts. We analyzed different scenarios and how we were able to lower our net debt and our growth debt. You know, we are within the matrix of all of these agencies. And even though we're paying out dividends, we would like to remind you that to post questions, please press star 1. Please wait while we collect all the questions. We are bringing to an end our Q&A session. I would like to give the floor back to the company for their final comments. Well, I would like to thank all the participants for taking part on our earnings results call, and I would like to . This was an additional good order in all regions. Secondly, we continue with our trajectory to return to the investment grade. I would like to reinforce here that we have had significant deliveries that were presented this afternoon with a reduction of our gross debt representing $1.7 billion until the end of June and recording the lowest leveraging of the Breskin history of 1.1 times. And in 12 years, the company leverage will reduce six-fold. And in the future, we will maintain a very sound position with a very good length and profile for the debt, as you could hear during the question and answer session. Additionally to this are commitment with ESG exists, and you can see considerable strides in that area. We have changed the board. We have a compliance committee, and all of this has had a very positive impact. And we do have two independent members. And finally, we truly have confidence that the cash generation in the following quarters will be very good. Everything points to this and our operational cash will continue at very comfortable levels. I would like to reiterate our continued commitment towards productivity and competitiveness of all of our operations, the cash generation of our business, And, of course, we want to continue to work with all of our shareholders. Once again, we would like to express our thanks, and we hope to see you again during the release in the third quarter of this year. Thank you very much. We passed a conference call, and here we would like to thank all of you for your participation. Have a good afternoon.