B3 Sa Brasil Unsp/Adr

Good morning, ladies and gentlemen, and welcome to the audio conference call of B3's earnings results for the fourth quarter of 2023. We would like to inform you that all participants will be in listen-only mode during the company's presentation. After the company's remarks are completed, there will be a Q&A session when further instructions will be given. As a reminder, this conference is being recorded and broadcasted live via webcast. The replay will be available after the event is concluded. I would now like to turn the conference over to André Milanes, B3 CFO, who will begin the conference and be joined by Fernando Campos, Investor Relations Associate Director. Please André, you may proceed.

Thank you. Good morning and thank you everyone for joining our fourth quarter results. I'll start with a few remarks and then I'm going to hand over to Fernando to go into a little bit more detail about the figures for the quarter. We'll try to be brief so we can leave more room open for Q&A. We had an environment during the fourth quarter marked by uncertainty, especially surround the level of interest rates in the major global economies, particularly when the interest rate cuts would begin. In Brazil, although we have seen that process of rate cuts already starting, the level of interest rate remained still at high levels, which I guess prevented a more meaningful recovery, particularly on the equities market. So as I said, a challenging quarter for the listed segment, which was offset by a good performance of our other segments. Here are some highlights for the revenue coming from the OTC and fixed income business, which was, I guess, favored by that environment of interest rates. The revenues that we had during the quarter coming from the Desenhalla program, the performance on the infrastructure for financing unit and the consolidation of Neurotech, which also helped in the comparison to the fourth quarter of 22 and impacted our data segment. In comparison to the fourth quarter, we saw a decrease of 3%, fourth quarter of 22, and stable revenues in relation to the third quarter. On the expense side, as we have been discussing throughout 2023, we were aiming at the lower end of our guidance. That was exactly the number that we ended up delivering. If we compare 2023 to 2022, our expenses remained below inflation, especially if we exclude the impact of Neurotech, which was not present in our numbers in 2022, which we believe was a positive result of our efficient gains initiative that was carried out at the end of 2022. Regarding the growth during the quarter, I think it is worth highlighting and we can potentially explore that in more detail during the Q&A session. Two main non-recurring items that have contributed to the growth that we saw during the quarter. First, there were the expenses related to the operation and development of the platform for the Disney Hollow program. As I said, that contributed on the revenue side, but also on the expenses side and of course, this becomes giving our operational leverage and the size of our expenditure becomes more relevant for the expenses than it does for the revenues. But more than the project itself, I think it has been also an opportunity for us to develop a product which is now an existing product that was reinforced and improved, including in our subsidiaries PD tech portfolio, which could bring new opportunities in the future. And another highlight was that we saw here an opportunity to anticipate contributions to our self-regulatory activity for the following years, in our view at least, that would be sufficient at least to fund our self-regulatory activity for the next two years. And that was only possible given the exercise and the management of our budget for the year during the quarter. In comparison to the third quarter, I think it is, besides those two items that I had already mentioned, we had a quarter where you have the full impact of salary adjustments, which take place in August, some project acceleration, and some other seasonal expenses that typically take place during the last quarter of the year. I'm going to call Fernando now to talk a little bit more about the operational performance, the revenues, and I'll come back after that.

Thank you, Andre. Good morning, all. Starting with the equity segment, ADTV of cash equities reached 24.3 billion reais in the quarter, a drop of 25% year on year, given the impacts of the elections that we had on the fourth quarter of 2022. and the growth of 2% quarter-on-quarter, which is below the recovery that we historically see in the fourth quarter when compared to the third quarter, which is a weaker quarter. We had a pretty stable market cap, so the turnover stood at 136%, pretty much in line with the last quarter. Regarding margins and fees, the stability compared to the fourth quarter 2022, even though we had lower volumes in the 4Q23, reflects the lower participation of foreigners and retail, which pay a higher fee compared to the local institutional investors, which had a higher participation during the quarter and they pay a lower fee. And we had more volumes traded through market-making and liquidity provider programs, which are incentivized, so they also have an impact on margins. On listed derivatives, despite the decline in revenue in low single digits, we see that the performance is good. We had some price adjustments, mainly on the interest rates in BRL contracts, which provided liquidity and volume for the contract. We had an all-time high record in those kind of contracts for the year. So we had a good operational performance with a slight decline in revenues. In OTC, it continues to perform well with the current level of interest rates. new issuances and average outstanding balance of bank funding instruments grew 3% and 8% compared to the 4Q22 and 3Q23 respectively. And also it's worth highlighting the strong growth in Treasury Direct, growth in the outstanding balance of 26% and 4% in relation to the 4Q22 and 3Q23. and the solid performance that we have in derivatives as well, with a growth of 29.9% year-on-year of issuance and outstanding balance, respectively. So, with this, revenue of OTC grew by 15% year-on-year. Finally, in technology data and services, it's worth highlighting the growth in OTC utilization line, a growth of 8% versus the 4Q22 and 2% 3Q23. And it grows with the fund industry in Brazil. And it's well, like Andre mentioned, it's also worth note that the data revenue includes Neurotech revenue for the quarter. Returning to Andre to talk about other highlights of the results and some strategic advancements.

Thank you, Fernando. I think besides talking about revenues and expenses, on the financial results, we saw our financial result for the quarter impacted by the debentures issuance that we carried out at the end of September, beginning of October in the amount of 2.5 billion. remembering that this was a transaction where we've achieved the best rate in the company's history for that kind of term. On the tax side, we had some fiscal incentives that were recognized during the quarter, which have helped to reduce our effective tax rate for the quarter. Our recurring EBITDA, as a result of all of that, Our recurring EBITDA ended up the quarter mounted to 1.5 billion with a recurring margin of 65%. Of course, a decrease as a result of the, mainly the impact on the expenses that we have already addressed. And our net profit to shareholders reached 915 million reais. Regarding our payout, we've distributed 1.4 billion in relation to the quarter, with close to 500 million in share buybacks, 600 million in dividends and 330 million in interest on capital. for the year as a whole, our distributions amount, total distributions amount to 5 billion reais, which represented a payout ratio of 122% of our net income. Regarding some strategic developments, I think it is worth mentioning the launch of our block trading platform in November, which has been operationally and working well, still gaining traction, but doing well. We have also announced in December an agreement with the ASX, one of the main trading platforms for the carbon credit market in the world, with the ambition to develop a platform like this in Brazil, a move that reinforces our commitment to bring new products and solutions to our clients, and also in this case to the ESG agenda. And I think more recently in January, as we also have been discussing other two important advances, we launched weekly options for equities and ETFs. giving more alternatives to our clients and investors. Also a move that we believe could help to improve liquidity in some of these asset classes. And another highlight was that we started the operation of our FX clearing, 100% cloud-based, an important move in terms of modernization of our infrastructure. One of the few perhaps in the world that is currently operating like this, which in our view will enable us to speed up the innovation process as well in terms of FX products. I think that's it. So it's been a was a not an easy year where once again, the resilience of our business model was put to test, where we were able to perceive some of the results of some of the initiatives that we've taken during 2022. I guess we're more confident in terms of the scenario for 2024 and still very committed to our cost discipline. And I think with that, I'll leave the floor open now for questions. Thank you.

Thank you. The floor is now open for questions. If you have a question, please press the raise hand button. If you are connected by phone, dial star 9 for raise your hand and then star 6 to activate your microphone. If your question is answered, you can leave the queue by clicking on the same button or dialing in star 9. Wait while we pull for questions. Our first question comes from Silvio Doria from Safra. Please, Mr. Silvio, your microphone is open.

Hi, thanks for taking my question. I have one question about Demensta. Could you give us more details about Demensta performance in this quarter, especially regarding operational performance? margins, we saw some margin deterioration in this quarter in Demesta. Besides the sea level change, there was something else, something related to the operational side. What could be the margin going forward in a normalized scenario for Demesta?

Thank you, Silvio, for your question. Regarding the Mensa, I think the main reason for the result during the last quarter has to do with some of that that you mentioned, some non-recurring items that affected the performance there. We, together with our partners there with TOTOS felt that some changes were necessary to deliver what we believe is the ambition with that project. So there have been some changes in management. Actually, a lot of changes that took place, particularly during the last the last quarter and the last half of the year. And as a result of some of those movements, the expenses there were affected But I think we've done the changes that were necessary or the main changes that were necessary to perhaps get back into that trajectory of expansion and growth of the business. So I do expect margins to gradually improve over the next few quarters. As a result of that, Jumensa has also recently announced a big acquisition, expanding its offerings and services to the insurance segment now. So we remain very constructive and excited about the potential of this partnership with TOTUS.

Okay, thank you. It was brilliant. Thank you.

Our next question comes from Caio Prato from UBS. Please, Mr. Prato, your microphone's open.

Hello, everyone. Good morning. Thanks for the opportunity. I have one here on my side, please, regarding the Disney Hall program that impacts both your revenues and expenses this quarter. So first, if you could share with us how much was the impact of this program in your expenses. And moreover, the spike revenues seem to be somewhat, I would say, meaningful this quarter with the program. So I just would like to understand the net impact of the Desenrola program this quarter, which seemed to be positive. And going forward with potential new phases, if the margin of this business could be even higher as the platform setup was already done. Thank you.

Thank you for your question, Caio. I think, you know, If you look at the expense side, right, and put together the two main impacts that we've discussed, the expenditure regarding the Desenrola program and the anticipation of the future cash needs for the self-regulatory activity. Between those two, we are talking about a total of between 70 to 80 million reais in expenses. Regarding the program itself, It's tricky to just look at the results for the quarter because there have also been investments prior to that, which have been recognized as CapEx. But our goal here or the result should be positive, even though it's not gonna be a huge return in terms of financial return. It's gonna be positive, the return of that project. But I would look at that beyond what the project itself was. So it wasn't, I guess, important to help the government to achieve its objective, which was to take a lot of people from the delinquency list. It was a very challenging project. We put our skills and capabilities, our product and technology teams to the test. We were successful in delivering that. And we have now a platform which we believe could be used for other purposes, right? So even if not necessarily at the same format as the one we had on the Desenvala program, there are other business opportunities that could be pursued as a result of all the investments that we made to set up that solution that helped to deliver the program. So I would look at that more as a potential opportunity for new products and new services rather than the initiative itself as being meaningful in terms of results generation. Having said all of that, Given that the program has been extended, we should still see some impacts, both from the revenue side, as well as from the cost side, affecting the first quarter of this year as well.

Thank you very much.

Our next question comes from Pedro Leduc from Itaú BBA. Please, Mr. Leduc, your microphone's open.

Thank you, guys. So on expenses, please, again, I know there's some non-recurring effects here, but more looking into how the year ended, your guidance for 2024 implies adjusted expenses up by maybe high single digits at the midpoint related to revenues a bit higher than that. If you can go over a little bit on what your focus areas will be, what you believe is driving these expenses. That'll be the first. And then second, on the financial results side, if there's some volatility in this quarter, if it's natural, something we should see, or if it recovers a little bit into the next. Thank you.

Thank you for your question, Pedro. Regarding the expenses, I think if you look at, let's say, what are more manageable costs or core costs, let's put it this way. If you look at the performance, I think we did pretty well. So growth in personnel expenses, if you exclude differences from comparison basis, you will see that we have delivered well in this area, which reinforces the results of the initiative that we've taken out. And as I mentioned, I think a lot of what we've seen during the quarter has to do with, I wouldn't say like non-recurring necessarily, but things that are more of that nature. So things that not necessarily will remain there forever, right? So the Desiralla program and some one-offs in terms of anticipation of future cash needs. As we have been saying, our goal remains to deliver a growth in terms of the expense side much more in line with inflation going forward. That's what we will be working towards looking at 2024 and the following years. We do believe we have the necessary tools to deliver that. Again, continuously seeking to find efficiencies in areas of our business as technology advances, as we keep revisiting and improving. our processes and activities in order to support any needs for growth in other areas where we believe investments are necessary to keep pursuing new growth alternatives. So that has not changed and that will remain an area of focus for 2024. Regarding the financial results, There is always some volatility because as you know, part of our financial results come from balances that we do not necessarily control. So the average cash balance that is posted by our participants, that generates financial income, can fluctuate a little bit. Besides that, as we discussed, we've raised slightly towards the end of the year the level of gross debt of the company, anticipating some needs already for the beginning of this year and taking advantage of a favourable market opportunity. So I think other than that, there's nothing really that is, I guess, worth highlighting. So there will still be some level of fluctuation coming from that dynamic of third-party cash balances. Thank you.

Our next question comes from Yuri Fernandes from JP Morgan. Please, Miss Fernandes, your microphone is open.

Thank you, Milanese. Fernando, I have one on the financial side also, a follow-up there. When we go to your presentation here, you have the cash and financial investments, right? The PowerPoints. And when we go to the market participants, collateral and others, we saw a decrease on the cash there, like a 25%, 26%, quarter over quarter decrease. But ADTV, because I think most of this is cash collateral, right? And cash collateral in your balance sheet is mostly, you know, stable, actually up quarter over quarter. So my question is, why the line drop this 25%? Like, I think it was from 5.4 billion reais of that cash from market participants going to about 4 billion. So what is driving that? If not the cash collateral, what is inside the others line that drove this decrease? And if I may, just to follow up on expenses, given you anticipated so much expenses, why not revising the guidance for 24 and calling for a better year in 24, given DSM, you mentioned those two years of cash anticipation. Thank you very much.

Thank you, Yuri. I'll start with the last one, and now just make sure I fully understood your first question. But with the last one, as a result of that, at first, as I said, there are some one-offs, right? So if you take the Disney Hala program, but as I said, we will still have some impacts coming from that program coming during the first quarter. And I don't know whether government could decide still to extend further the program. So I think it is still too early to potentially, rather than maybe coming today and revising our guidance and then potentially having to revise it again upwards this time because, I don't know, for whatever reason, the program has been extended. We preferred to maintain our current guidance. But we will definitely, given all of that that we have been describing, again, work more towards the lower range, the bottom range of our guidance than the top range as a result of that. In relation to your first question, I'm not sure whether I fully understood, and you please correct me if I don't, but the main problem here is that looking only at the year-end balance does not necessarily reflect what was the performance throughout the quarter. So, the key... metric here ends up being the average cash throughout the quarter and we can have some significant fluctuations on a daily basis on those balances. So just taking the year end balance as as an indication of that can be can be misleading.

Got you. Yeah, it's slide 12. Like it's basically those two. So basically you're saying that this is end period and average balance should not have been done, should not have been decreased as much as we saw here on the end of the quarter figures, right? Yeah, that's it. Okay. No, that's super clear. Thank you, Milanese. Thank you.

Our next question comes from Lindsay Shimi from Goldman Sachs. Please, Mrs. Shimi, your microphone's open.

Hello. Thank you so much for taking my question today. I'm just trying to get a better idea of how expense growth could be more in line with inflation in the future. Could you give a ballpark of how much of the spike in expenses was recurring? Should we expect 65% EBITDA margins for the next couple quarters? Just kind of more color on that. Thank you.

Thank you, Lindsay. So, yes, as we have been discussing, I guess, if we take out the two main items that we highlighted, meaning here the Desenhalla program and the contributions that were anticipated, future contributions that were anticipated to our self-regulatory activity, out of that, those two numbers together represent between 70 to 80 million Reais of impact on the quarter. So of course, since all of that was recognized in a single quarter, that what primarily explains the margin drop that we saw in the quarter. Going forward, again, reinforcing what I just mentioned, we should see our expenses growing more in line with inflation. That's what happened throughout the year, although we saw that spike on the last quarter. I think here there is room for improvement in terms of how we manage some of those moving parts throughout the year. But you should expect a growth for 24 more in line with inflation, slightly above or slightly below. And I think that's it. So therefore, margins should not remain at that level if it depends on the expense side. Of course, given our operational leverage, our margins end up being much more sensitive to the top line than on the expense side, but you shouldn't expect the expenses to be a drag to the margin going forward.

Thank you very much.

Our next question comes from Carlos Lopez from HSBC. Please, Mr. Lopez, your microphone's open.

Hello, good morning, and thank you for taking my questions. Two of them. The first one, can you reiterate your view regarding the leverage of the company? You are now at 14.1 billion in debt. Last year, you were at 12.2. Your leverage, according to your numbers, is 2.2 times EBITDA. Could you... discuss whether you want to maintain that level. It was one only three years ago. What do you think is appropriate going forward? And second, if you could give us an update on the litigation in which you are involved, and could you please confirm that the litigation regarding the central bank actions is now, I think it's 41.7 billion reais at stake? Thank you so much.

Thank you, Carlos. Regarding our leverage ratio, as we discussed during the last quarter, we saw market opportunity. As I said, we've ended up issuing raising capital at the lowest cost for the company's history for that particular term. So we saw a window of opportunity to anticipate future to do a liability management exercise here and anticipate future needs. We have maturities coming due at the beginning, at the first half of this year. So some of that will be used to pay down those maturities. And that's why we've indicated a lower level target level for this year which if I'm not mistaken is in our guidance at two times gross debt to EBITDA but you should expect us to be working around that level right around two times slightly above that or slightly below I think that's a level that we feel at the moment that it's appropriate for the company Regarding the litigations, I think we had an important development more recently, right? Which I guess most of you have followed. We had, despite all the discussions regarding the casting vote and everything that has been taking place in relation to the to the administrative courts, we had a positive result on our third case, the Goodwill cases, where we had a favorable decision to us That means that this is going to be finally resolved. That exposure will no longer be there, at least for the third case. And in our view, that's an important mark that can help also The other cases, as you know, they are individual cases. So the result, a favorable result in one does not necessarily mean that we will have the same outcome on the others, but it does definitely help a lot. So it was an important advance in that sense. And regarding the other case, there hasn't been any significant developments so far that we could share with you, unfortunately.

On the good will case, thank you very much. And actually, I think that's an important point that you have this decision. But you have not excluded that from the list of potential cases. liabilities in your financial statements, is that right? Because it came after the hearing?

Yes, not yet, because there are still some legal proceedings that have to take place for us to be able to formally consider that case dismissed. All of those would not have the ability to change the favorable result, but we will only update that when this is formally done. But that's the only reason, okay?

Okay, but other than that, this is over. This particular case is over.

Yeah.

Congratulations, that's good news.

Thank you so much. Thank you, Carlos.

Our next question comes via phone. We ask you to press star six to activate your microphone and identify yourself before proceeding. So please press star six and activate your microphone.

Hi, it's Ian White from Autonomous. Hopefully you can hear me okay. Just wanted to ask for a bit more detail, if you could please, on the performance in data and analytics. I'm looking in particular just at the growth you've delivered there sequentially from the third quarter into the fourth quarter. There's a ballpark 19 million rai. Just some help understanding what's happening. Is there an element of sort of one time revenue that has been booked here? Is there some particular traction with some of the newer products that would be useful to call out? How do you see this area kind of progressing over the next few months in terms of the product development and the roadmap that you talked a bit about at the Investor Day? That would be interesting, please.

Hi Ian, this is Fernando. So thank you for your question. So regarding data, the main impact here are two products. And I think it's an important part of the product development and the segment development that we've been doing in data. So there are two products that are mostly acquired by some of our clients in the last quarter of the year. It's the first one, it's a profile for individuals that own cars or own vehicles. So they mainly look at how the buyer or the taxpayer number profile in ownership of vehicles. And this is a annual kind of consultation that the clients do. And so here, this is a product that we have for some time, but we've been able to increase and do some upsell on this product for the cards. And the other ones is what we call the investment profile. So it's also annual. So it's kind of a seasonal revenue that comes from it. And but this product is a new product. The last year in 2022 was the first year that we had revenue coming from it. And that 2022, we would increase that. So this is kind of a seasonal revenue, but it's part of the agenda of product development in data. So it's a good indication for the future.

So if I could just summarize some elements of seasonality here, but also some early signs that some of those initiatives are starting to gain more traction. I think it is still early days, but I think maybe next quarters could provide better indications or how are we in terms of gaining traction on those initiatives, but it is a positive sign.

Thanks very much. That's really interesting. I just, maybe just a short follow-up. You've talked a bit about sort of seasonality and sales that occur in 4Q. Is there a sort of an annualized recurring revenue gap figure or anything of that sort that might help us just understand the run rate for the business versus kind of what you actually delivered in the fourth quarter. I wasn't 100% clear from what you said as to whether the seasonality reflects revenues that only occur once, or whether it was more that the growth happens in the fourth quarter, and then that's kind of a level from which further growth might be delivered in one Q24, if you can sort of understand my distinction there. But if it's an ARR type figure or something like that, that would be really interesting too.

I do understand your point. And it is a one. One, because it is a one-time service, but it tends to occur every year. So it's slightly tricky, right? So it is not a service that is performed throughout the year. It is more of a one-time sale, but which tends to occur every year. And that, so besides, but besides that, a one-time sale that has been increasing. So we might need to go back into a little bit more diving in the numbers to perhaps give you more color on that. But in general terms, that's what it is. But we can maybe try to share more details later on. That's great. Very helpful. Thank you.

Our next question comes from Jaume Rezengi from T. Rowe Price. Please, Mr. Rezengi, your microphone's open.

Hi, guys. Thanks for taking the question. Two basic questions that are follow-ups to what I already talked about. So one on the debt issuance, can you just elaborate a little bit more on the uses of proceeds for that? I understand how much rate is coming in, but I think it's nothing that meaningful compared to what you raised. At least not in the first half of this year. And second point is a follow up to Yuri's question on the third party cash. I think he was referring to the slide that basically says that the third party cash came from 5.5 to 4 billion to roughly 4 billion quarter on quarter. When I look at the balance sheet, there's collateral for transactions that actually went up from 3.3 to 3.6 billion. So I just want to understand what else is in that line that has dropped so dramatically to make up for actually the increase in collateral for transactions. Thank you.

Thank you, Gijama, for your question. And please let me know if I didn't get it right. But regarding the issuance of the venture, we had, if I'm not mistaken, 1.2, 1.3 billion reais maturity of one of our other outstanding ventures coming through this quarter. So this quarter or beginning of next quarter, So rather than leaving that to be rolled over this year, we took the opportunity of a favorable, very favorable market condition last year and anticipated some of those needs. So part of the proceeds from that issuance that took place at the beginning of the last quarter of the year will be used to pay down that debt. that could also be other opportunities of doing some liability management as we have been doing throughout the, probably throughout 2023. And as a result of that, that's why we will target to arrive at the end of the year with a lower level of gross debt as it is indicated in our guidance for the year. But feel free to let me know if there is any points I ended up not covering in my response. And I'll pass on to Fernando to comment on a little bit about on the cash balance.

So, Gemma, for the third quarter, there was some cash that was deposited. It was not for the trading activity. We have an arbitrage chamber here at B3. So there was a cash that was there. coincidentally, just for the end of the last quarter, in the third quarter, sorry, in the third quarter of 23. So that's the main difference between what we see in the balance sheet and what we had on the presentation. So that's the main difference. It was cash collateral that was deposited with us, but not for trading activity and for the arbitrage chamber.

Perfect. Thank you.

Our next question comes from Pedro Leduc from Itaú BBA. Please, Mr. Leduc, your microphone's open.

Thank you for the follow-up. And it is actually a follow-up still, sorry, on the cost side of things. I know you mentioned that a lot has been front-loaded from the government program into fourth quarter. But then there was a point that if the program is continuing, there's also costs in one queue. Did I just want to make sure that I got that right? Right. And then the second question, I want to pick your brains a little bit on margins. There's a mixed effect. But I don't know if you can comment a little bit within that mix, high frequency, any programs there that have changed. Anyway, these are the two follow-ups. Thank you.

Thank you, Pedro. So just to make sure we are on the same page, There have been investments that were made in order to improve and build that platform. And that has been recognized throughout the third quarter and some of that on the fourth quarter. And that, of course, has not impacted our P&L because it has been capitalized we had some of the expenditure on the development side that could not be for whatever reason capitalized and the expenses that we have to run the operation because it's not only the technology we are providing services as well as part of that that delivery uh we had those costs affecting primarily the the mainly the fourth quarter which was when the program uh at least the phase where we were involved really started so some of those costs would also be affecting the first quarter of this year and that's why i said that if you look at the all of those moving parts, we do expect the project to be marginally positive, but we should not look for the project individually as a big, let's say, opportunity of result generation, but more in terms of what other opportunities we have ahead of us now that we have that platform ready and set up. And your second question was regarding margins, right? So... Equity trading. Sorry, say again?

Trading margins, correct.

Yeah. So... There's no, let's say nothing really significant in terms of our pricing schedule that should affect margins going forward. So it will be more a reflection of the mix of our participants. But again, there's also nothing that we believe, at least in the short term, that could change that dramatically. So we will be see some fluctuation month over month or quarter over quarter, according to that mix. But at least not for the short term, I do not expect any material changes to those mixes coming either from market movements or from movements that we are doing in terms of our prices.

Appreciate it. Thank you so much. Thank you.

Thank you. This does conclude today's Q&A session. I would like to invite André Milanes to proceed with his closing statements. Please, Mr. André, you may proceed.

Thank you everyone for your continuous support, for joining our call. Thanks to all the teams that have helped to put all of that together to you guys. As I said, I think it was not an easy year, but we are constructively optimistic in relation to the potential opportunities for 2024. Thank you again for your support. Have a nice Friday and a good weekend ahead of us. Thank you very much.

This does conclude B3's audio conference for today. Thank you very much for your participation and have a wonderful day.