Companhia de Saneamento Básico do Estado de São Paulo - SABESP

Hello, good morning, everyone. Welcome to SABESP's 2021 Full-Year Earnings Conference. My name is Mario Sampaio. I am the Superintendent for Fundraising and Investor Relations. With us today... Well, let's open for everyone first. So once again, with us today, we have Dr. Benedito Braga, CEO of SABESP, Oswaldo Garcia, CFO and IRO, Marcelo Miyagi, Superintendent for Accounting, and Marcel Sanchez, Superintendent for Regulatory Affairs. Before turning the conference over to Dr. Braga, who will begin the conference, I'd like to Say a few things. This video conference is being simultaneously translated into English and also being recorded. With regard to how you use the simultaneous interpretation, you will find further information on the chat very soon. The presentation and the recording will be available for download at SABESP's IR portal where the press release is already available. Remember that the speakers will take questions only in writing via the platform's chat box. Our conference is expected to last between an hour and 90 minutes. About 45 minutes of which will be set aside to answer questions from analysts and investors, after which we'll have about 15 minutes to answer questions from the media. To conclude this time of guidance, we'd like to clarify that any statement made during this conference about the company's business prospects, projections, and operating and financial targets are based on beliefs and assumptions from SABESP's management as well as information that's currently available to the company. Forward-looking statements are no guarantee of performance. They involve risks, uncertainties, and assumptions in that they refer to future events and therefore rely on circumstances that may or may not come about. Investors must understand that general economic conditions, the state of the industry and other operating factors may affect the company's future earnings and lead to results that differ materially from those expressed in said forward-looking statements. So let's now begin officially. I'd like to turn the conference over to Dr. Braga who will Dr. Braga, please take it away. Thank you, Mario. I'd like to greet everyone who's joining us this morning. We are really pleased to give you some positive news. We are now issuing a material fact with regard to the fact that RSASP has issued today the evidence of our economic and financial capacity with regard to the new legal framework for sanitation. Meeting the demands of Articles 10b and 11b from the latest Federal Decree which determines proving the economic and financial ability of service providers to meet their targets for universal coverage by 2033. This is something that has been published in public documents and for all 370 municipalities Peralta, Maria Alicia Lima Peralta, Maria Alicia Lima Peralta, Maria Alicia Lima Nothing that compromises us in financial terms with regard to the cities of Agudos, Hortalandia, Igarapava, Quintana, Laranjal, Paulista and Santo André, which account for about 3.5% of our revenue. But we are working on that caveat to have it be lifted in the next few days, but we will keep the market informed about that. I'd like to talk a little bit about hydrology and investments. 2021 was as challenging a period as 2020 was. That was mostly because of the pandemic situation. As vaccination began, our situation began to improve as well. But we're still working on the front lines, maintaining our construction work and operations. Over the course of 2021, we invested about 5 billion Reais in this set of 375 municipalities where we operate, which account for 68% of the state's population. In metropolitan São Paulo, within the context of the Tietê project, We had 2.4 million people being serviced within the full sanitation cycle for water and sewer treatment. And within the new Rio Pinheiros program, which is part of the Tietê project, we were able to bring the sanitation system to 516 new properties. or 1.5 million people, which would be enough to fill a city the size of Porto Alegre. That was a very consistent result, which also included great publicity about SABESP's work within the context of the Novo Rio Pinheiros program, bringing basic sanitation to The population and especially vulnerable population within the metropolitan area of São Paulo. We had a very dry year in 2021. Our largest reservoirs, the Cantareira and Autotiete systems reported about 70% of the expected rainfall levels But because of the investment we carried out over the course of the last four or five years after the major water crisis we faced, we found ourselves in a very favorable position to supply clean water to the population. So we enjoy water security. And it is a really peaceful situation for us this year. We have been recommending a rational use of water, but despite the very dry, extended dry season and a conscious water use by the population, we find ourselves in condition to have a steady water supply. So now after sharing this good news with you, I'd like to turn the floor over to our CFO, Osvaldo Garcia, who will talk a little bit about our financial results in the year 2021. Please, Osvaldo, take it away. Osvaldo Garcia Thank you, President Braga. Good morning, everyone. I'd like to thank everyone for joining another one of SABESP's earnings conference to discuss our earnings in the year 2021. We'll start by talking about the overall build volume. We saw an increase of 1.2% in that volume over 2020, 0.7% referring to the increase in the volume of water that was built, and 1.7% in sewage treatment builds. When we look at the consumer mix, we see that the rise was most intense in the residential category with 3.8%, followed by the industrial category with 3.1% and the commercial category with 2.5%. In public service, the volume decreased 2.9% over that period. The metropolitan area showed the largest growth, especially in sewage treatment, reflecting the investment we've made over the last few years to expand our collection and treatment in line with our investment plan. Moving on to the next slide. Our financial highlights will begin with the sanitation services. We saw a rise in revenue by 7.6% with that in the period. Going from 15.2 billion reais to 16.3 billion reais in 2021. Among other factors, what most affected this increase was the enforcement of the average tariff adjustments of 3.5% in August 2020 and 7% in May 2021. Our net operating revenue increased 9.5% from 17.8 billion to 19.5 billion. And that was because of the same factors we mentioned before, as well as the revenue from construction, which contributed 660 million with that growth over that period. Our administrative and sales costs and expenses, including construction costs, increased by 14.6%, going from 13.4 billion in 2020 to 15.4 billion Reais in 2021. If we exclude construction costs, the increase was smaller by 13.5%. The adjusted EBITDA for the period decreased slightly by 0.8%, ending 2021 at 6.4 billion Reais. The EBITDA margin, which disregards the revenue and the cost with construction, has also decreased, going from 45% in 2020 to 41.5% in 2021. Our net revenue ended the year at 2.3 billion, about 1.3 billion reais above what was found in 2020, supported by our positive financial result, which amounted to 2.2 billion. So moving on to the next slide, we were talking about our costs and expenses. And I'd like to start by saying that our operating results over the year were ultimately more substantially affected by the fourth quarter results. During that period, we reported an increase in our expenses, mirroring the easing pandemic-related restrictions which led the company to move back to its maintenance activity levels and also performing not only those maintenance work that was corrected or emergency. We also saw the results of a two-digit inflation rate which affected prices in general and which was only reflected more recently in the rise in prices that was determined by the regulating agency. Another aspect has to do with the water level situation which required that more water was pumped between reservoirs to ensure the maintenance of supply. That increased energy consumption in an environment where prices were already very pressured. In this case, the same increase in the migration from consumption in the captive market to the free market segment was not enough to mitigate those impacts. Now, focusing on the year-to-year comparison, costs and expenses, when we disregard construction costs increased 13.5% or 1.3 billion Reais. It's also important to remember that 2020 was a very unusual year when a number of non-emergency activities were stopped or postponed because of COVID-19. In addition to that, the advance in inflation, which reached a two-digit level in 2021, was another factor that impacted In a widespread way, our costs and expenses. In staff expenses, we'd like to remember that in late 2020, we saw a slash in 1200 employees. And in 2021, another 300 were laid off. Those staff cuts have made up for a wage adjustment The increase in spending on overtime and medical assistance, which had decreased significantly in 2020, returned to their regular levels in 2021, leading in 2021 to a slight increase of 0.3% in nominal cost. Our SG&A, so to speak, A slight decrease at the end of 2020 and have increased by 26.3% and 19.1% respectively, a result of the maintenance, especially corrective maintenance and activities that have been postponed during the height of the COVID pandemic. Our expenses with treatment material increased 7.6% because of the lower level of our reservoirs and as a result, The quality of water has also deteriorated and the increase in prices of chemical components. Our electricity expenses increased 20.4%, especially because of an average increase in our environment tariff and the regulated environment tariff of 18.9% and the free market environment of 2.3%. General expenses, much of growth observed of 21.3% or 212.9 million is explained by the expenses on legal lawsuits, which amounted to 87.2 million and the 78.3 million increase in provision for Transfers to Municipal Sanitation Funds and Environment and Infrastructure Funds Unlike our revenues, the losses estimated with credit and doubtful borrowers were still not recovered. In the year, they increased 198.9 million, a 10.6% impact because of the increase in delinquency. These were the main comments about costs and expenses in 2021. Now, on slide 6, we have the chart for our financial performance beginning with the profit found and reported in 2020 of $973.3 million, showing the movements and the result in the period. Our net operating spending increased $1,693.5 million because of the tariff adjustment that was enforced in May and the increase in overall build volume as well as the increase in the average tariff because of the larger volume that was built in commercial and industrial categories where tariffs are higher. Costs and expenses including construction costs increased $1,966.8 million because of the larger investment in 2021 and the return of in-person activities which had been postponed in 2020 and also the rise in inflation in 2021. Other operating revenue and expenses, excluding that within the equity model, showed negative change by 121.5 million because of non-recurring events that we had in 2020 with the reversal of provision for losses with the city of Mauá. The financial result showed a positive variation of 2,239 million, especially because of foreign exchange movements. In 2020, the Brazilian currency lost its value by 28.9% and 35.7% versus the dollar and the yen, respectively. In 2021, the dollar gained 7.5% in value, whereas the yen lost 3.9% of its value. We are mitigating the effects on our loans and financing contracts. It's important to remember that throughout 2020 we reduced our exposure to foreign exchange to the levels we're seeing today. But because on average our exposure was greater than in 2021, that combined with how the dollar has behaved, that made the negative effects greater. In terms of revenue tax and social contributions, there was a negative variation by 511.6 million because of the larger result in 2021. The result was a net profit in 2021 by 2.3 million. Before I move on to the Q&A, I'd like to go over very quickly about the tariff adjustment that was released in the last 17th of March. On that date, ARCESP issued its deliberation number 1278, which came with a technical note authorizing us to adjust our tariffs by 12.89% which is made up of the IPCA, the Consumer Price Index between February 21 and February 22 which was 10.5437% minus the x-vector of 0.2142% and the general index adjustment for quality in 2020 which was 0.1490%. Plus the adjustment for the ceiling revenue of 1.4040% and 1.5% of adjustment in residential tariffs as set because of the less tariff provision and the tariff structure that was changed last year. The deliberation also determined that the new tariff structure were delayed in its deployment. This advance will have no significant impact for the company because RSASP has generally followed the methodology that had been stipulated for the adjustment, which is to say the tariff acknowledges that the actual revenue was more than 2.5% below the allowed revenue. So, we implemented the adjustments gradually in the structure, applying the additional increase of 1.5% in residential tariffs to reach the target structure in the following years. The adjustment authorized by our SASP and approved by the Administrative Board will be fully deployed or fully put into effect As of May 10th, in addition to that, because this is the first time this mechanism is being applied, the company will ask for clarification for the agency to clarify about its premises and the criteria it adopted. We will keep the market informed about that. And with that, let's move on to our question and answer session. Okay, so I believe everyone has our image now. So this is the time when we will begin our question and answer session. We'll start with questions from analysts and investors, following which we will open the floor for questions from journalists. It's important to remember that you must ask your question using the Q&A function. That's how we will We already have a significant number of questions. And I will start with the first one, which is an extensive. It actually includes three questions and comes from Marcelo Gonçalves. I will read his first question and then we'll move on to the following ones. So he starts by saying about the tariff adjustment. This year, SABESP mentioned in its technical note that the adjustment was 180 million smaller because SABESP did not introduce documents about its commercial programs. Why were these studies not presented for 2021 and 2022? Will SABESP present those studies for their commercial programs? Okay, Osvaldo, you can answer this question. Well, the regulating agency considered an addition to make up for what occurred in the sales segment. We will still clarify how the agency addressed the issue, but we do plan to demonstrate everything so that this correction Returns to our prize composition next year. Well, Marcelo's next question is also on the tariff adjustment issue. The same note includes a mention from RSESP that because of the amount billed with regard to factor K, deducted 200 million reais from the tariff adjustment. So what is factor K and why was there a 200 million deduction from the tariff adjustment? Well, factor K is something that's come. It's right for them to make that adjustment, but it's slightly different from what SABESP expected, which was 189 million. In any case, in that document, we will also address this issue. This is something we are concerned with, and we will look into what the aspects were that they were looking into. So I don't know if I skipped any of Marcelo's questions. I think those were his two questions. So the next question comes from Giuliano Ajeje from BSI. He asks, the tariff in force in Q4 2021 is 2.5% smaller than the one in force in Q4 2020. Why has it decreased? Osvaldo again? Well, I will turn the conference to Miyagi to answer that question. Well, good morning, everyone. The average price takes into account a number of things, including the mix. And we see that there was a decrease in consumption in the low 10 cubic meters and an increase in above 10 cubic meters. So that is driving the mix down. That's essentially it. All right, moving forward. The next question comes from Guilherme Lima. And on that note, if you guys would like to, in addition to your name, also include what institution you're with, I will announce that when I ask your question, okay? So he asks about two topics. The first one has to do with the tariff adjustment in 2022. So could you guys talk about the factor K, which we just addressed? And what, in your opinion, was in charge of the impact of 200 million? And then what is your opinion about the methodology to apply that? And also about the 2022 adjustment. Could you guys talk about the process of acknowledging the commercial programs or revenues from commercial programs Will these programs be implemented? I think Dr. Braga has answered that in part. Would you like to add anything? Well, I think Oswaldo could address the issue of the commercial programs. As I said, these programs These are a way to bring in new customers to increase our volume and reduce our costs at SABESP. We expect to introduce those programs, meaning they're part of our pipeline, but in that document we expect to send to the agency, explain all the details so that in our next quarters we can cover the overall volume. Okay, so Guilherme's next question is, what is your guys' opinion about the decree to prove your economic and financial capacity for sanitation companies? How is that being enforced? And in your vision, what do you expect will be of the contracts that are considered irregular? How long will these contracts remain irregular? Well, the problem with contracts being deemed irregular is that in the act and also the decree will prevent the city or the municipality from accessing funds from the federal government via the Social Development Bank or any other public or state-run bank. And now as to how long will they be allowed to remain irregular, that's a more complicated issue. I don't know if Osvaldo has anything to say about that. But there's a lot of legal uncertainty around all of that. Well, the opinion from our legal department is that the contract is only irregular when it comes to accessing federal funds or funds that rely on federal approval. With regard to maintenance of the contract, the contract will be maintained because it is a perfect legal document that's been signed by the two parties, so there's no The next question is... It comes from... Actually, Eduardo Lazzaretti and Juliano Ajajay asked similar questions. I'm going to read Eduardo's and Juliano's questions very quickly. So there was a decrease in water and sewage connections in Q4 21 versus Q3. Water connections, for example, went from 10.152 million in Q3 21 to 9.84 million in Q4 21. Would you guys care to explain why that increase occurred? Was the concession contract Has the contract expired in any municipality? And Juliano asks, why did the number of new connections within the project New Rio Pinheiros decreased? Dr. Braga, how do we address that? Well, we have a new commercial system we're deploying. And within this new system, we have an update in our register. That led to an update in the numbers of active and inactive connections. And that is why we reported that situation. Would Osvaldo like to say anything else? Well, President, the explanation is exactly that. In Q3, we deployed the Neta system, and as we expected, The register was sort of cleaned up so that we had only the active connections and had more clarity about delinquent connections as well. So let's move on to the next question. Coincidentally It's the same question again from both Eduardo Lazzaretti and Juliano Ajej. They asked about our provisions and PCLD. Eduardo asks, if you guys would please care to comment about the increase in PCLD and what you guys expect in those terms for the next quarters, that would be great. That was the first question. Now, Juliano was a bit more specific. He mentions that the provision for Dr. Braga? Yeah, that's on Osvaldo's realm. Let's hear from him. Well, essentially, our PCLD grew on Q4 in the wake of our introduction of this new system. Until the system is fully regulated, we've adopted a completely conservative stance and held off on any more decisive We expect that to decrease in the next quarters. We've already seen a decrease since February because once the system was stabilized, we once again are moving forward with clearer billing actions. We are being more incisive in that sense. What we expect is, as of the next quarter, that figure will come back to its historical or to its regular levels. So moving forward, we have two questions, or I believe there may be the same question from Juliano Ajeje. He talks about reported and regulated income. Does SABESP intend to ask for a reimbursement of the difference between its reported revenue and regulatory revenue as defined by ARCESP and the change of the tariff structure? And the second is the compensatory adjustment that was reported in the last slide Is it enough to cover the over 1 billion real gap between the reported revenue and the regulatory revenue? Well, those are two questions. First of all, the numbers do not reach 1 billion because we have our figures per segment, but you're right in saying that We are sending this letter for clarifications precisely to understand what the methodology was for this mechanism and also to have clarity over the fact that will our provisions play into that or not. Now, from the conversations we've had, the answer we had was yes. In the next tariff revision, we will have those results In a capitalized way. So our first step now has been precisely to get on the same page about the methodology that was applied in revising the tariff or adjusting the tariff. But we are facing this in a very positive way because everything the agency set out to do in its third tariff revision, the agency did. Our disagreements that must be refined for both this revision and for other tariffs is to understand whether our concepts, the concepts we're adopting and that they're adopting are matching. So we do expect for the next tariffs to include everything that was not adopted by our SESP in the latest adjustment. Perfect. So the next question comes from Claudia Gutierrez. Claudia asks also about PCLD and what is going on. I understand that this has already been addressed. So just for Claudia to understand, we have already addressed the issue in increased delinquencies. Okay, so next question comes from Milene Carvalho. She asked about the postponement in adjusting the tariff. Her question is, this year, RSASP decided not to introduce the change in the tariff structure. Will this be postponed to 2023, or will it be implemented during this cycle? As a result, will your minimum What will the new consumption rate stay in force until what time? It will stay in force until the new tariff structure is put in place. We expect that to be as soon as possible. That the new structure will be implemented maybe by 2023 or 2024. We do not believe it will be postponed longer than that. That's essentially the answer. Okay, Melanie then asked something else. She raises the relevant, the material fact that was issued today. RSASP issued A proviso or a caveat to six municipalities, Santo André included, without their adherence to those contracts, will they be considered irregular? What will the federal concession look like? Well, I think Osvaldo has already answered that. The contracts remain in force. The question is, as we said earlier, is that these municipalities will face more difficulties when trying to raise funds with the federal government. The next question is from Diana Gado, but it's a question that's already been answered. She asks about the number of connections, which decreased in 2021 compared with 2020. The next question comes from Juliano. He says the EBITDA margin reported in 2021 is the narrowest since the water crisis in 2015. So does the company have any plan to reduce its costs? Well, guys, cost reduction plans are always welcome. I'll ask Osvaldo to address that issue. www.sabespecial.com Once inflation starts to go up, we have to sort of chase it with our revenue after the fact. So the movement this year is expected to be the opposite. So once adjusted, our rates will reflect the inflation rates from the last quarters. Now, just as with any company, we have to Thank you very much. Thank you very much. Peralta de Saneamento Básico do Estado de São Paulo Peralta, Maria Alicia Lima Peralta, Maria Alicia Lima Let's move on to journalists. She asks two questions. What are SABESP's plans in terms of being part of bidding situations and what are the projects they're studying? And the second question is about the contract additions. How did SABESP deal with the inability to rebalance considering maturity extensions? What was that rebalancing work done in view of the inclusion of investments? Well, let me answer the first one and then Osvaldo addresses the second. We will be looking into those possibilities when it comes to bidding or auctions. We have no specific program We have a number of municipalities and a number of cities coming after us to join SABESP or to bring SABESP to their system. We are looking into Article 10 of Law 1706. which could maybe open the possibility for us to establish partnerships with other municipal agencies. So currently we are focused on the state of São Paulo, but there's no question that should an opportunity arise that is financially We will look into that, always in partnership with the private sector, which opens a number of doors for us from a managerial standpoint and institutional standpoint. That's sort of the course we're treading. Oswald, if you could please talk about the additives. Well, with regard to rebalancing the contracts, let's separate things so that we make it easier. The first stage was about proving SABESP's financial ability to perform those contracts. So we showed them and submitted the statements proving all of that. Now, the next stage is to rebalance and the financial and economic ability of each of these contracts, because those contracts have provisions about how they should be adjusted, how they should be rebalanced. And that will be addressed in the next revisions and the next budget guidelines as well. So it is very simple. There are still norms that the National Electricity Agency are already putting out, which will affect how we rebalance those contracts financially and economically, such as the levels of supply, intermittent supply, how will we charge for those sums that will not be settled by the end of the contract. So we're sorry that the issue was addressed the way it was, not allowing us to extend Tais asks for details about those partnerships and Juliana Estiga-Rabia also asks something along the same lines. Thais says, what type of partnerships would those be? Would they be with other cities in the state of São Paulo? And Juliana asks, if you guys could please give us more details about how many municipalities would be involved in these new partnerships, as she calls it. Well, these would be specific purpose partnerships with municipal agencies or Partly city-run companies. Now, with regard to the number of cities, I do not have that information yet to share with you, Julian, I'm sorry. Okay. So, we're still waiting for new questions. Remember that both journalists and analysts can ask questions at this point. Let's give it just a couple of minutes to see if there are still questions we need to address. Any additional question, guys? While I'm refreshing my screen, I think we have a new one. Thais is following up on her question about those special purpose partnerships. Would SABESP be the minority partner? Could you please give us any example of what you're studying? Well, the answer is yes, we would be a minority partner, but still with a significant share of the project. I do not have any example to give you right now. I'm just mentioning opportunities that we could pursue, but I do not have at this point any concrete study on that regard. We're still studying that even in terms of how it would work legally.

So we have a number of questions coming in now. So Thais Foucault asks,

Within your new cost reduction plans, do you expect to have any more staff cuts? Thank you. Well, on that issue, SABESP has already streamlined its staff over the last two years, about 2,000 layoffs. So at this point, We do not have any definition about how that cost reduction would be performed. But I wanted to make it clear that we've already reduced our staff. We are now close to 2,900, staff 2,900 strong. So, the next question that came in is from Pedro Furtado. He asks, considering how much the Brazilian currency has gained value recently, do you see any opportunity to reduce your debt exposure in foreign currency any further? So, could you please repeat the question? Okay, so considering the appreciation of the Brazilian real that we've seen recently, do you see any opportunity to reduce your debt exposure to foreign currency any further? Well, we're looking into that so that we can, in the future, present possible devices to make the most of the appreciation in the domestic currency and see what we can do in terms of reducing our Maria, could you please tell us where you're reading those questions from? Well, when I said last call for questions, my window refreshed and I'm seeing more questions now. Are you the only one seeing those questions? I can tell you that. I can't tell you that, I don't know. I can only tell what I'm seeing on my screen. I think we have another question about our exposure in foreign currency. No, you can read it, Oswaldo said. Okay, let me read it, Mario said. It comes from Fabiola Gomes. She asks, how does SABESP expect to SABESP will finance the investments required to meet the targets provided by the new sanitation law or the new sanitation act. Do you expect to have any foreign currency issues? Well, SABESP will give priority to issuing shares in Brazil and raising funds in multilateral and other organs that could be converted to national currency. International missions and movements in foreign currency are not in our plans, but we are still developing that plan. Our investment plan is already settled for 2022 and 2023. And now we will begin to think about what type of devices we'll be using from 2024 onwards. Again, remembering that we plan to reduce our debts in foreign currency, so we do not plan to issue any type of letter that cannot be converted into Brazilian currency. Yeah, that guidance from the administrative board was given because our revenue is denominated in domestic currency. Therefore, funding in foreign currency includes significant risks. So the multilateral agency is already making that change. For example, the IBD is already changing the debt from foreign currency to Brazilian real. So that is corporate guidance about our investment program. Well, another question came in. Let me quickly read it. I think it's been answered already, but there are some details that maybe we could address. Senara Cardoso dos Escobar from the CMA agency asks whether the 200 million reais excluded by RSS What does the company plan to do to have that adjustment? Well, those 200 million refer to the tariff that has nothing to do with the company's economic and financial ability. And as I explained, that is because of the factor K, which we expected to be at about 180 million. And we are now in talks with the agency to understand the methodology that they used, and it refers to the revenue from the polluting load. and the pollution load from the company. Okay, we have another company from Fabiola Gomez. She asks, how much do you guys plan to invest this year and next year? Okay, so for this year, we're talking about 4.7 billion and 4.6 billion next year. Okay, I'm refreshing again to see if any questions are still coming in. Well, Dr. Braga, it's already noon, so I think it's time for us to conclude. All right, so let's make our last call. And Dr. Braga, you decide. Well, I'd just like to thank you, Mario, and thank all of our superintendents and our director who have worked really hard on this financial statement. I'd like to thank the analysts and journalists for joining us. You guys have really been on our necks for efficiency and improvements and rest assured we will continue to improve and also the company is working to provide more water and sanitation to every population in the state of São Paulo and also to bring good results to its investors. The investment program that we're developing for the next five years, programs that will be on average at 4.5, 4.6 billion will account for about 30% of everything that's invested in sanitation across Brazil. That only goes to show how this company vibes, which is in terms of bringing a better quality of life for our state's population and for investors. So once again, thank you all. I wish you a nice afternoon and great business to all of you. Thank you. We'll see you next time.