Compania Cervecerias Unidas, S.A.

Before we begin, please take note of our cautionary statements. Statements made in this call that relate to CCU's future performance or financial results are forward-looking statements which involve known and unknown risks and uncertainties that could cause actual performance or results to materially differ. These statements should be taken in conjunction with the additional information about risk and uncertainties set forth in CCU's annual report, in Form 20-F filed with the U.S. Securities and Exchange Commission, and in the annual report submitted to the CNF and available on our website. It is now my pleasure to introduce Mr. Patricio Jotara.

Thank you, Claudio, and thank you all for joining us today. We are facing a challenging and volatile macroeconomic scenario. In this context, we need to focus on maintaining business scale and recover our margins. On the positive side, In terms of business scale, in spite of a decline in our consolidated volumes in the second quarter, considering a high comparison versus 2021, we reported double-digit growth when compared with pre-pandemic volumes. This is the second quarter of 2019. Thus, our business scale remains strong through a constant improvement in brand equity and excellence in sales execution. On the negative side, Regarding margins, these were negatively impacted by strong external effects coming from higher price and commodities, a sharp depreciation in our main local currencies against the US dollar, and higher inflation levels impacting our costs and expenses, partially offset by price increases in all our categories and geographies. In summary, during the second semester, We will decidedly continue with our revenue management efforts along with efficiencies to recover our profitability sustained on a solid business scale. Regarding our consolidated results, our revenues expanded 18.8%, boosted by 22.4% rise in average prices in Chilean pesos, while volumes contracted 2.9%. The better average prices in Chilean pesos were mainly explained by revenue management initiatives and price increases. EBITDA reached 32,471 million Chilean pesos, down 47.3%, and EBITDA margin decreased from 13.1% to 5.8%. The weaker financial results were mainly associated with, one, higher costs from raw and packaging materials. Two, the depreciation of our main local currencies against the U.S. dollar impacting negatively our U.S. dollar denominated costs partially compensated with export revenues. And three, costs and expenses pressures associated with an accelerating inflation in our main geographies and higher oil prices. The price efforts mentioned above were definitely not enough to offset these external effects. Hence, the need to strengthen our revenue management initiatives in the coming quarters. Regarding net income, we totalized a loss of 10,465 million Chilean pesos versus a gain of 18,968 million Chilean pesos last year, caused by the lower BGA mentioned above, and a higher loss in non-operating results, the latter mostly driven by higher net financial costs owing to a larger debt. In the Chile operating segment, our top line expanded 3.7% due to 7.3% growth in average prices while volumes declined 3.4%. The higher average prices were explained by revenue management initiatives partially offset by a negative mixed effect in the portfolio. Lower volumes were caused by a high comparison base and a less favorable consumption environment. Gross profit contracted 19%, mostly as a consequence of cost pressures, and a 17.6% devaluation of the trillion peso against the U.S. dollar, affecting our U.S. dollar denominated costs. MSDNA expenses grew 5%, and as a percentage of net sales, increased 43 basis points, where efficiencies helped us to offset expenses pressures coming from higher inflation and oil prices. In all, EBITDA reached 23,711 million trillion pesos, decreasing 59.1%. In the international business operating segment, which includes Argentina, Bolivia, Paraguay, and Uruguay, net sales recorded a 70.9% rise as a result of an increase in average prices, while volumes contracted 1.7%. The better average prices were mostly explained by revenue management initiatives in all the geographies. In terms of our geographies, volumes in Argentina and Paraguay expanded versus pre-pandemic levels, while Uruguay was flat and Bolivia declined. Work profit expanded 73.7%. MSD&A expenses as a percentage of net sales improved by 235 basis points. Efficiencies compensating higher inflation and other cost pressures. Altogether, EBITDA reached 1,072 million chilean pesos versus a loss of 2,223 million chilean pesos last year. The wine operating segment revenues were up 16.7%, explained by a 17.4% growth in average prices, while volumes decreased 0.5%. The higher prices in Chilean pesos were mainly explained by a positive impact on export revenues from depreciation of the Chilean pesos versus the U.S. dollar, and revenue and mixed management initiatives in the Chile and Argentina domestic markets which permitted us to partially compensate higher costs in packaging materials and inflationary pressures. Consequently, gross profit expanded 13.6%, MSD&A expenses grew 17.9%, and the percentage of sales increased 26 basis points. In all, EDBA reached 11,788 million chilean pesos, a 9.1% rise. In terms of our main international joint ventures, in Colombia, volumes remain growing double digits in the second quarter, given by beer and malt. In terms of financial results, our increase in business scale together with revenue management initiatives allowed us to improve last year's profitability levels in spite of cost pressures and the recent devaluation of the Colombian peso against the U.S. dollar. In Argentina, our debut with Aguas Danone de Argentina S.A. showed strong top-line growth led by volumes and prices. Now I will be glad to answer any questions you may have. After repeating that our main challenge during the second semester will be decided to continue with our revenue management efforts along with efficiencies to recover our profitability sustained on a solid business scale.

Thank you. If you would like to signal with questions, please press star 1 on your touch-tone telephone. If you're joining us today using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. You'll hear a tone indicating when your line is open. At that point, if you would please state your name and and company name before posing your questions. Again, that is star 1 if you would like to ask questions, star 1. We will go ahead and take the first question.

Hi. Good morning, everyone. It's Fernando Rivera of Bank of America. Thanks for taking my questions. I have two, both related to Chile. On one side, Can you comment what were the dynamics between consumption at home and away from home during the quarter? And how do you expect these two channels to behave ahead of a less verbal consumption environment? And my second question is related to beer. Can you talk about how the demand behaves between premium and non-premium brands also during the quarter? And what is your expectations concerning

of these two segments ahead thank you okay thank you fernando for for your question look on-premise consumption in q2 9 2019 this is before pandemic was 10.6 percent and q2 2022 was 6.2% after being zero in the middle of pandemic. So we have recuperated two-thirds of the volumes, more than the volume, two-thirds of the proportion on total sales represented by this channel, and we expect to recover the remaining third very soon because things are moving to normality. This is regarding this. And regarding premium, before pandemic, premium used to be 25% of our volumes in 2019. During 2021, this percentage jumped a lot because of the enormous amount of money retired from pension funds and the money and the government's payment to consumers. So these figures on average in 2021 was 40%, but beginning in 30% at the beginning of the year in 2021 and ending more than 50%, almost 55% in December 2021, which is a lot. In Q2, In Q2, this figure is 43%. So we have declined from the top, which was 53% or 55% in November, December 2021, to 43% in Q2 2022.

Great. And given that you expect less thermal consumption environment, Is it fair to assume that it should continue declining the proportion of premium brands?

It's difficult to say, but we expect this to happen. And this is particularly challenging for us because for many years, Fernando, with inflation being 2% in Chile, or 2% to 3%, we're able not to increase nominal prices of beer and gaining more men and improving our profitability by two elements number one the increase in the in the proportion of premium on one hand and the increase in the per capita consumption on the other so we're able to increase the scale and the profitability of our business without increasing nominal prices today this is absolutely impossible we need to increase pricing try to increase prices and but it was not enough in July again, but it's not going to be enough because inflation is too high, cost pressures are too high, and because we are decreasing the proportion on premium in our portfolio. So as I mentioned in my introduction, revenue management is going to be key in the coming months, and we are focused on this.

Great. Thank you so much. Thank you.

Thank you, and we'll go ahead and take the next question.

Hi, good morning. It's Fernanda Siles from Credit Suisse. Thank you for the opportunity to ask questions. You're on my side. I have two. Along the same lines as the previous questions, I was just wondering if you could comment on the consumption and dieting achievement. If you've observed consumers trading down, and what's the outlook for the rest of the year? And my second question is, given the acceleration in volume across all the regions, does this change your pricing strategy going forward? And how do you see the competitive environment within this context? Thank you.

Thank you, Fernanda, for your questions. I mean, the comparison against the second quarter of, 2021, it's impossible because we grew our volumes by more than 30% in that quarter. That is the reason why we are decreasing our consolidated volumes by 2.9% compared with that quarter. But again, when we compare the volumes of Q2 2022 with Q2 2019, which was the year previous pandemic we have grown our consolidated volumes by 11.4%. And double digit in beer in Chile, double digit in non-alcoholic in Chile, and consolidated base 11.4%. And accumulated 22 first half of the year compared with accumulated 2019 Perhaps first half of the year we have grown our volumes by 16% and beer in Chile, non-alcoholic in Chile by more than 20%. We expect the trend for the future probably to be stable with little levels of growth. It's difficult to know, but we think that 2023 volumes are not going to decrease but they're not going to increase importantly i would i would say that they will increase low single single digits we're just beginning our budgeting process and we are preparing ourselves for a for a very low level of growth even uh stable volumes in 2023 compared with 2022. in a scenario like like these um waiting management initiatives and uh deal with our expenses and decrease our expense and be more efficient is key. And all our efforts in the second half of the year are going to be in that direction. They're not going to be enough to save 2022 probably, but we are betting for a much better 2023 indeed. And regarding competitive scenario is difficult. It's difficult to know, but the cost pressures, inflation, and devaluation is being saved by every player in the industry. So I could imagine that the competitive environment will move in that direction, but of course we don't know because it's unpredictable.

Perfect. Thank you so much.

Thank you. We'll take the next question.

Good afternoon, everyone. Thanks for hosting the call and for taking our questions. We also have two. Patricio, I think previously in the first question, you mentioned that you placed two price hikes year to date, but this is not yet enough to cover fully your cost inflation, right? So I was just wondering, what is incremental pricing that would be needed in order to theoretically offset the ongoing cost inflation? And what is your plan to attack this going forward throughout the second semester? This is the first question. And the second question is regarding efficiency, right? Obviously, the transformation plan has yielded strong results over the previous quarters, but competition is high and the operating environment is a little bit challenging, right? So, I'd just like to know what is the buffer for further efficiency to partially protect our margins going forward? and how this fits with your need to continue to invest in brand equity in order to protect your market share. Those are the questions.

Thank you very much, guys. And we did experience a brief interruption in the conference. Please remain on the line. Thank you. It's okay. Please resume.

Thank you.

Yes. Tiago, I made a complete answer to your question, but then I realized that the line was not there. So I don't know if you listened to the answer or if I go again to the answer.

Not at all, Patricio.

Okay.

At least on my end, I didn't hear. Sorry.

Perfect. I will go again then. Thank you very much. As you mentioned, you're right. I said that we have made, during the year, in the year, two price increases. The first one was in March, April, and the second one in July. So the results of Q2 just incorporated the first price increase, but did not incorporate the second price increase as it happened in July. And you are right, as I mentioned before, the two price increases are not enough to compensate the huge pressures we're having on inflation, cost of raw material, inflation, devaluation, and we'll have to make more revenue management initiatives in the future. The amount on how much we should increase to fully compensate and to recuperate profitability in 2023, Our goal, I cannot disclose this, but we are committed to moving in that direction.

No? Sorry, go ahead.

No, no, no. That's it. Are you there, Tiago? Did you follow my answer?

Yes, yes. Perfect. Just one question. Do you think there is a space in the short term for consumers to absorb further pricing?

I think yes, because it's a phenomenon which is happening in almost every category in Chile. In the case of beer, probably we were not fast enough as we should have been, we should have done. And we think yes.

I'm sorry for taking longer, guys, but I'm just not sure if you follow my final question. I had one regarding efficiency and the role that it might play on profitability going forward. For sure, we know that the transformation program we have in place has yielded strong results, right? I just wonder how much further room do you believe there is for efficiency and operating leverage to help you protect profitability, knowing that competition is catching up and you will probably need to revamp marketing and investments into brand equity, right? So how does the equation fit and how much efficient it could be another lever for you to protect profitability going forward?

This is a very good question. Number one, I have mentioned it many times and I will repeat, we never reduce marketing expenses to improve our profitability because brand equity is key in our business to protect our market shares and to protect our business scale and to protect our ability to increase prices. Because without brand equity, you cannot sell volumes nor prices in the market. And our brand equity indicators are getting maximum levels in Q2 2022. And we are very happy on this result because it will give us a lot of confidence on the fact that they're moving in the right direction. This is number one. Number two, to keep scale key in our business. This is the reason why I've mentioned during this conference call the fact that our scale is there because if you lose scale, it's very difficult to keep efficiency. Having said these two things, I will go directly to proficiency. We have done many things, but everything we discover new opportunities to be to be more efficient and we have the transformations if you plan in place we are placing the we are placing the objectives for 2023 and there's still room in many areas to be more efficient in sales and safe execution definitely in our factories factories indeed in logistic and distribution indeed and we just implemented sap replacing people's software in our operations and we are just stabilizing these and we bring a lot of efficiencies on the administrative side coming from this. Again, our business at the end of the day is about grant equity, scale, ability to keep market shares, ability to have good prices, and the ability to operate with a high level of efficiency. Those are the basics in place that we should establish, and we are moving with a lot of determination in all these elements to recuperate profitability because we feel uncomfortable on the profitability of Q2 definitely, and we expect to improve definitely profitability, particularly in 2023. I'd like to say to my teams here in CCU that it's possible to have a bad year, but we are never allowed to have two bad years in a row. And we are putting all our efforts to have a good 2023. And again, we feel comfortable in our ability to do this, particularly because the brand equity of all our portfolios are the maximum levels in And we know what we need to do, and we are going to do this to recuperate profitability.

That's all. Thank you very much. Very clear, Patricio. Thank you.

Thank you, Tiago.

And we'll take the next question. Hi, Patricio and team.

Thanks for the space for questions. This is Felipe from Scotiabank. So kind of a follow-up on Tiago, because you took a little bit of the question that I had, which was why you were a little late on pricing, because it was fairly evident that in Chile you only have to carry over pricing. But you already mentioned that you increased prices in July. So let me follow up and ask about your competition, because one of the concerns we've had is that on the dust hedge and you don't – So in theory, if they are hedged, they should be able to stick a little longer with their current prices. So just wondering how you saw the competitive environment in July after you priced. Did your competition move up with you? And how have you felt the consumer react to that?

Extremely difficult to know, Felipe. In March, increased prices in Chile and competition took one month in some channels and two months in other channels to follow. In the meanwhile, we lost a little bit of market share. Then after two months, they finally followed us. In June, we recuperated the market share we had previous March, the previous price increase, but in the meanwhile, We lost market share. We're just in this crisis last week. We don't know if they're going to follow or not. It's impossible to know. Probably we're going to lose market share for a couple of months and if they finally follow us, good. If not, we are determined to adjust prices because we need to do this to recuperate profitability in our business.

That's very clear.

Thanks a lot for that caller. And let me follow up with another one on Argentina. You guys were not alone in this. There's about half of our coverage has operations in Argentina, and the numbers have been all over the place because of the difference between inflation and devaluation. So I'm just wondering if at a certain point, whether you explore to kind of separate Argentina as a different bucket, just so it doesn't I guess, muddies up the numbers in the rest of the international division. Do you guys ever contemplate something like that?

Yes. I mean, you're right Felipe. This has happened in Argentina many times in the last, I don't know, 20 years where inflation moves in one direction and they keep the money with the Argentine currency without the valuation. So you make a lot of money, but it's a kind of, but it's artificial money. And then, they catch up with with the exchange rate producing a huge evaluation and your results in your dollars uh deteriorates a lot and then you catch up while inflation comes and you could adjust prices has been it has been our life in argentina for for many years and uh it's a roller coaster uh argentina in this sense and this in 2023 They evaluate more than inflation probably we're going to suffer in our results. I mean, a huge proportion of the results in international business comes from Argentina. So the international business in Argentina in terms of EBITDA and EBIT are not too different. But let's think if it makes sense to separate or not. Felipe, I prefer not to give you an answer. not to give you an answer now, but again, if you consider the whole results of the international division, Argentina represents a huge proportion.

No, that's very clear. Thanks so much for the call. Maybe I'll do a last one on hedging. I think in our coverage, and I don't know if this applies to the rest of the analysts in the line, but I think you're the last company that doesn't hedge, that doesn't do raw materials and FX hedging. And it gives you less time, I guess, to react, right? When you have very sudden moves, like the move you had the last quarter on FX, or just the last two or three months, actually. Do you ever contemplate maybe exploring... starting a hedging policy or is this something that the board has completely scratched out and it's not even being considered?

I mean, I'm going to say something obvious. I mean, if you know that raw material is going to increase its price, indeed it's a good idea to hedge. And if you know that raw material is going to decrease its price, it's a bad idea to hedge. It happens that you never know what is going to happen. And if you hit long term at the end of the day, you will be paying a high cost of raw material because you you you would be paying the cost of raw material plus the margin implicit in the contract to to hit the price of raw material. So long term to hit it's a bad idea because you will finish paying a high cost of raw material. It's true that if you do not hit, you face more volatility. but you do not destroy value. And at the end of the day, to face volatility and to feel the impact of a change in the cost of a raw material immediately, oblige you to move faster in taking the necessary adjustment in your business to cope with this change in raw material. So it's not just a matter of, it's not a matter of the board, indeed it's a matter of the board, but it's also a matter of the management. We are completely convinced that it's not a good idea to say that we will continue keeping these strategies, Felice.

No, I'm just, that's what we're clearing up. This is a lot of color about how you guys are thinking about it. So thanks a lot for that. Appreciate it.

No, please. Thank you.

Thank you. And we'll go ahead and take the next question.

Hi. Hello.

This is Enrique . Thanks for taking my questions. I also have two, both of them in Chile. The first, if you could just please give a little bit more details on the performance, performance in beer and non-alcoholic categories. doing Q2 and how that builds up to the volumes that you delivered in the quarter, I think it would be very helpful. And the second, Chile, in terms of your margin recovery during the second half of the year, still a lot of moving parts, but for Q3, I think the effect is playing a little bit against quarter on quarter, but you have the improved, I think, commodity prices and also the price hikes that you did. So, Just thinking if it makes sense to think that Q2 should be our low point in margins in Chile, meaning, right, if Q3, it should already start to put some recovery. Thanks very much.

Thank you, Enrique, for your questions. Look, I think that the best way to represent how volumes in Q2 were in Chile is to compare them with Q2 2019. And if you need this comparison, beer in Chile was 11.5% higher and non-alcoholic 19% higher. And if you take the whole semester, so the first half of 2022, and you compare with the first half of 2019, beer in Chile is 20.8% better and non-alcoholic 20.4%. We have increasing volumes in a very good way in the last two years, because from 2019 to 2022 to have three years and 21, 20, 21% growth means 6 to 7% growth per year in the middle of this pandemic period, which is very good. So if you're comfortable on on this. In an answer made before, in a question made before, excuse me, my answer was that regarding 2023, expect the economy to be very weak, and we assume that volumes are not going to grow, are going to go very easy. We have budget in 2023. Having this in mind, then if volumes come, good news, but I prefer to budget assuming that volumes will not grow, and to prepare the company to make money, to have a profitable 2023 under this scenario. Regarding margins, it's difficult to say, but I think that Q2 was the bottom, and I expect to recuperate margins definitely in the rest of the year, but particularly for 2023. We're putting all the focus of management on fully recuperate margins on 2023. Are we going to be able to do this? Yes or no? It's impossible to say, but this is our focus to recuperate the good margins we had the previous 2022 in 2022.

That's very clear. Thanks very much.

Thank you.

Thank you. We'll take another question. Hi, everybody. Thanks for taking my questions. This is Lucas from JPMorgan.

I'm wondering if you can discuss a little bit of your performance in here in Chile in the different channels where you sell. So in particular, you're suffering in any specific channel. So on-premise, off-premise, and within the off-premise, how do you see key accounts versus mom and pop, so channels that have probably you have better profitability through feeling more pain. So just wondering if you can give us some visibility on each of the channels in particular. And then just to follow up on the cost side, as you just mentioned that Q2 probably marks the bottom in terms of profitability. We've been seeing obviously the commodity prices falling in the exchanges. I'm just wondering if real life, when you bid for, let's say, barley, if you already get lower prices, or if it's just more of a, let's say, financial reaction or sell-off of the exchanges, but how the sellers are behaving. Are they already giving you lower prices for key commodities, aluminum, barley? You can comment on these trends. Thank you very much.

Thank you, Lucas, for your two questions. I will answer the first question and then I will ask Felipe Duvernay to go to the second question. So regarding channels, after the price increase in March, beginning of April, we lost a little bit of market share while our competitors didn't follow. And as I mentioned before, in June, we fully recuperated our market share in all the channels. We have a very good market share in on-premise, or extremely good market share, but in on-premise, a good market share in mom-and-pops and a little lower market share in supermarkets. But if you consider these three channels, in June, we got some market shares in between them. I was very comfortable with this. Felipe, go on. I'm very good at brand equity again, which is key, because behind the market share, at the end of the day, you have the brand equity of your brand. Felipe, please, on quantity. Lucas, yes, of course, we have seen a decrease on commodity pricing in U.S. dollars. As you mentioned, aluminum, grains, sugar. But what's happening is that this effect that is positive for us has been jeopardized by the higher exchange rate. Because remember, all commodities are traded in U.S. dollars. So if you look at the dollar price in Chile has been more than 900 pesos per U.S. dollar compared to last year where we have in quarter two 715 It's a huge devaluation of the currency. All the commodity reduction has been jeopardized by the US dollar impact. This is the reason why Patricio has been very clear on that we need to continue to increase prices. We are not at the point that the different forces like exchange rates and commodities to be compensated each other. So, and again, specifically for barley, we need to wait until next season because we are dependent on harvesting Chile and Argentina, so it's difficult to focus. But this is the reality.

Perfect. If I may, sorry to squeeze in another question regarding capital allocation, how to think about your CapEx this year, anything that you can push forward to next year, and then on eventually buybacks, how to think about that at these levels?

Okay. I will take the first question regarding operational CapEx, let's say. So we published in the 20F our plan for 20... we will continue with this. However, we are very careful in reviewing each project in a project-by-project basis because, of course, we need to see, for example, mix changes, how the mix will evolve. So we are in a very volatile environment. For example, premium has been decreasing, as Patricio said, from the top. So premium reached 55%, and then we are moving towards 40%. But in our view, premium would remain higher than 2019. So we need to review, for example, if we need to invest in our capabilities to do more premium brands, et cetera. But for the time being, in 2022, we keep our capex For 2023, of course, we are starting our budgeting process in September, and then we will be very carefully reviewing, given different changes in portfolio, market dynamics, consumption, how these capex would evolve. That certainly is something that we will be reviewing very carefully during the last quarter. No, I don't have an answer for your second question regarding . There's nothing to say about that. No. Okay?

Thank you very much.

Thank you. And we'll take the next question.

Good afternoon. Andrea from . I would like to ask a follow-up on the target for 2023. So we're talking about thinking of 2023 in terms of volume, margins, and EBITDA generation like 2019, or is an average between 18 and 19. So trying to understand what would be a normalized level of profitability in 2023.

Thank you, Andrea, for your question. I think we're thinking in 2018 adjusted by inflation because when inflation was 2%, you could compare figures and nominal terms in inflation. We're living today in Chile. We need to adjust figures by inflation. So if in 2018 we make 100, we'll make our best effort to 100 plus inflation in 2023. We have putting all our focus on moving in that direction. Are we going to be able to do this or not? Of course, it's impossible to know, but we are definitely trying to recuperate real currency profitability in 2023. This is our purpose and our goal today.

Great, thank you. And if I may, a follow-up on the TAPEX plan for this year and next year. So from the plan announced in the 20 years, how much is flexible? How much you can post? I know you have a lot of liquidity, but maybe you want to reserve some liquidity for next year, thinking of a lot of uncertainty about consumption and the recession worldwide. So how much is flexible and you can postpone to the following years when you can have more visibility?

And yes, I mentioned before we're expecting volumes not to increase in 2023. We expect to recuperate profitability by revenue management, by efficiencies, not by volumes. Eventually, some volume is going to be there, but it's going to be very small. Consequently, we have enough capacity to cope with the volumes we expect for 2023 and 24, which was not necessarily what we considered when we put the figures on the last 20F. So we are adjusting our CAPEX for 2023, but we do not have a figure to share with you, but we're moving in that direction. Nevertheless, I would like to add to Patricio, of course, as I said, we will be reviewing the 2023 figures accordingly. Also, prioritizing the CAPEX project that, for example, bring us high level of efficiencies, this would be very important. But certainly, There is, of course, as you mentioned, a carryover. So during the year, it's more difficult to adjust this year, but certainly for 2023, it would be an adjustment in reality.

Perfect. Thank you very much.

And that does conclude the question and answer session. I'll now turn the conference back over to you for any additional or closing remarks.

Thank you very much. As we mentioned before, During the second quarter of 2022, we face a challenging and volatile macroeconomic scenario, which will probably remain in the short term. In order to face this, we'll focus on three key aspects to recover our profitability. Number one, maintain or grow our business scale. Number two, increase price supports, our main categories and geographies. And number three, expenses and cost efficiencies to our CCU transformation program. This is not the first time we have faced such a challenging scenario, but we are sure that with the mentioned strategy, we will be able to overcome it as we have successfully done it in the past. Thank you very much.