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Welcome to Magalu's conference call regarding its quarterly results. For those of you who need simultaneous translation, please click on the Interpretation button, the globe icon at the bottom of your screen, and choose your preferred language, English or Portuguese. We inform that this event is being recorded and will be available on the company's IR website at ir.magazinluisa.com.br, where you can find also the earnings release and the presentation in both Portuguese and English. The link to the presentation in English is also available in the chat. During the presentation, all participants will be in listen-only mode, and later we will hold a Q&A session. To ask questions, click on the Q&A icon at the bottom of your screen and type your name, company, and the language you speak. When you are announced a prompt to activate, your microphone will appear on the screen and then you must enable your microphone to proceed with your question. Questions received in writing will be answered later by the investor relations team. I now would like to turn the floor over to Frederico Trajano, CEO of the company. Please, Mr. Trajano, the floor is yours. Good morning, everyone. Thank you for joining us in this conference call to discuss second quarter 24 earnings results of Magalu. Again, I am here and I am joined by our complete leadership team. Our officers are here and all of us will be available to answer your questions at the end of the presentation. I intend to make a very objective presentation so we can have more time for questions later. And again, we have another exceptional result of the company, given some market conditions, particularly in what relates to interest rates, which are unfavorable. In Q2 24, we posted the third consecutive quarter of net income of the company. We achieved a historical mark of operating margin, of EBITDA, 7.9% adjusted EBITDA margin. This was the margin that was forecast in a consensus for the company for next year. So you can have an idea of how we brought forward this agenda. Since I have communicated in several calls since last year, our focus was to be profitable again. The focus of the company was to resume growth of our results, and this is exactly what we have delivered in the last three quarters, particularly in Q2-24. We reached 7.9% EBITDA margin, and we grew our EBITDA by 62%. In absolute terms, it's not just margin growth. We grew our sales when we grew our margins and we increased our adjusted EBITDA by 62%. This strategy was proven to be assertive, the right one, because in the beginning of the year, we, as well as the market, were forecasting a much different interest rates curve than what actually happened. Since what happened in 2021, I promised myself that I would never again be caught by surprise due to interest rates fluctuations or decisions by the central bank that would be different than we had in the consensus back in 2021. I remember that focus was estimating four and a half. And in the end, the interest rates was more than 10%. So we put together an agenda to speed up growth, to accelerate investments. And at the end of the day, financial expenses are much higher than what had been forecast. The 7.9% EBITDA margin shields us from any bad news in terms of interest rates. This is exactly what happened this quarter. Even with interest rates at a high level, with not so positive outlook, We are delivering profits, net income and results, improving the ability of our team to deliver results regardless of the macro scenario. Like to make this clear, it was the right strategy that was intensified by our team in the first half, particularly in Q2. with this level of 7.9% EBITDA margin. Last time we achieved this number was in 2019, before the COVID pandemic. So we are celebrating a lot these 7.9% and 62% adjusted EBITDA growth and the 37 million of adjusted net income. On the next slide, I would like to stress two important points. What led to the margin increase? It's very clear in our income statements. We had a 2.1 percentage point increase in gross margin. And this 2.1 percentage point increase in gross margin was driven mainly by the improvement of our 1p. A great channel contributing to the increase in our gross margin was 1p, increasing 3 percentage points. As it accounts for kind of half of our sales, it contributed with almost 85% to the increase in gross margin on merchandise, total gross margin in the quarter. And also, The growth in service revenue, which is part of gross margin, particularly financial services. We signed the agreement with Cardiff last quarter. We communicated that to the market. We sold a lot of insurance and other financial projects or products that did really well. So everything grew 11%, 11% growth in service revenue above total GMV, contributing to this increase of 2.1 percentage point increase in gross margin, you know, a consolidated result. So 1P and the growth in service revenue. These were the big drivers explaining the increase in the margin. Louisa Cred is now in equity income above the EBITDA line. Last year, the results of Louisa Cred was a detractor for our EBITDA margin. We had 16 million loss in second quarter 23. This year, we posted 71 million profit at Louisa Credit, a delta of 137 million BRL at Louisa Credit. Still on Louisa Credit, I'd like to highlight, without an agenda of granting more credit, everything came from better NPL indicators that are very healthy and continue to be so in Q3. giving us a very favorable outlook for the second half. So everything that we achieved this quarter in terms of financial results were not due to more loans granted. So it's a very solid result. LuisaCred came back on the game to have positive results, 71 million BRLs. By the way, one of the best quarters in the history of LuisaCred. And lastly, and here I'd like to stress this, because a good part of the questions asked last year and the pushbacks we had from the market last year were about the short-term debt, the maturities we were going to have of 3 billion. But I would like to emphasize that the company paid 3 billion BRO in the first half. A little over 1 billion in Q1, a little over 2 billion in the second quarter, a total of 3 billion BRLs reduction of debt. We are ending our balance sheet of this second quarter with zero short-term debt. Next maturities are pushed to the end of 2025 and the end of 2026. And we did this. not through court supervisory organization or whatnot. We did that with our cash. We did that by improving our margins, our results, and the cash flow for our operations. I think that this is evidence of the company's financial capacity. and with a much lighter agenda now in that regard looking forward. On the next slide, I would like to speak about our sales. Even with this agenda of growing gross margin, I spoke about the consolidated two percentage points increase in gross margin. in 3P, in 1P, but the company still delivered growth. Growing two percentage points in margin and growing the top line at the same time is very, very hard. If you manage a company as complex as Magalu or as any retailer in Brazil, you know that concomitantly increasing margins with this level when we are growing sales is very hard. And this is exactly what we delivered, 4% growth of total sales. And the big highlight? Of our sales in Q2 were the brick and mortar stores, the physical stores. We had the best same store sales number in a quarter since the third quarter of 2020. That's when the stores were reopening. There was a pent-up demand for the physical stores. So this is a historical number. Whenever we face a counter cycle as the last two years, there are some questions from the market regarding the future of brick and mortar stores. Whenever the economy improves a little and the economy is improvement, this is undeniable. We see this in the balance sheets of retailers and the banks. The physical stores are a big thermometer, macroeconomic thermometer. We know that things are improving. We grew 16% in this quarter. And here I'd like to highlight some specific regions. super important regions for Magalu, regions whose stores we opened in a counter cycle, Rio de Janeiro, Federal District, stores that were not mature. Well, they grew more than 20% now in Q2, 24 in the pushed up the average of our same store sales. So we're getting to a point of balance in Rio de Janeiro and the federal district. We had exceptional result in Rio Grande do Sul, despite what happened during the catastrophic floodings we had in the month of May there. We had an extraordinary result there. It was really good. families are buying again for their homes and Magalu was a company that was very present in the state. We provided a lot of support. We had a lot of donations. So our brand name is even more strengthened. We even have a product stamp for sellers from Rio Grande do Sul. So we were a brand that was very sensitive during a difficult moment. And the Rio Grande do Sul population is responding to our actions. They are choosing our stores to buy in this moment of reconstruction when they are rebuilding their homes. So this is really cool. We are very happy to see these results. The continue is very strong. And the Northeast again increasing the average of same store sales for the company. So it's a very good moment for physical stores. 16% same store sales growth. It is a number to be celebrated and it continues in Q3. E-commerce sales. In total, we grew 1%. Marketplace continues to grow 4%. Even more the take rate in this period. The e-commerce online sales focus was to contribute to increase the EBITDA margin of the company. In 1p, the gross margin increased to 3 percentage points, as I said in the beginning. We now achieved a level of 7.9, like I said, which is what is expected. which puts us in a comfortable level, even with a more negative interest rate or an interest rate which is not as positive as we expected. And we get freedom for the second half year. It gives us comfort to unlock the growth agenda. When we increase three percentage points, our margin, well, it's hard to do it and to focus on accelerated growth. The company needs to be focused. The commercial, sales, marketing teams need to be very focused. And they delivered what they set out to deliver in the first half of the year. Now, we're going to balance that with more growth next year. We don't want this margin of 7.9% to fall. We want to maintain that level and up. And I'll speak about some additional drivers such as ads and the FinTech to improve our EBITDA margin. So, We are not going to grow in detriment of the margin. We got to this level and we want to continue to evolve it. But yes, we will be more focused. And we will be reaping the fruits of initiatives that we started in the first half that will help us resume growth in the second half of the year. And I will speak more about them in the future. Undoubtedly, AliExpress is a big highlight. of these growth pillars, the partnership with AliExpress. All right, I'd like to highlight our fulfillment. An important growth driver in the marketplace is to evolve the fulfillment agenda. As soon as the seller migrates to Magalu, fulfillment, conversion rate increases, level of service improves, there's a reduction in shipping costs and a better economics, also for lower tickets. the squadron was then a year we achieved 21 of total 3p orders in magalu fulfillment we already have eight dc's we have an operation in sao paulo in minas we have operations in the northeast we are expanding our operations in the south fulfillment in the northeast has been 100 successful inventory turnover doing really well products arrive products leave with great availability and our fulfillment is different than the market fulfillment once the seller product is in our dc they benefit from the same advantages of our multi-channel approach that we have in 1p for example store pickup in 1p 50 of our items are shipped from store or store pickup or or shipped from store When 3P is also on fulfillment, they'll benefit from the same things. We have about 20% store pickup for 3P, so we are very excited to continue to evolve this agenda looking forward. We want to increase and expand our operation in the South, and we're in a final stage to have fulfillment also in Rio de Janeiro. So the agenda is moving forward really well. More than 3,000 sellers, more than 1 million pieces in storage, 60,000 unique SKUs. Next slide. I'd like to speak a little about... Some initiatives that can increase the margin, which is already historically high, to be even higher. One of them is ads. We completed our go-to-market team. Celia Goldstein joined us in the beginning of the year. She put together the team. We are now finalizing. all the platform improvements which are necessary for us to evolve. We had a lot of deliveries in what relates to self-service, sponsored products, and the big highlight was the increase of this platform revenue, plus more than 40% platform revenue, 3,700 active advertisers, practically 500 million monthly visits, considering visits to all companies of the group. Advertisers on the Magalu platform can advertise in Magalu, Kabum, and the 1,300 stores that we have. There are a lot of TV sets, so we can do offline media. We have just launched the new update of Lu. Lou is also monetizable. It's now part of the Burger King, the first advertising that Lou had for a brand on TV that was now done through Magalu. Lou is also an important source of revenue. We are very excited with the opportunities. the opportunities of the ads agenda. This has been implemented by practically all retailers around the world and almost always in a successful fashion. Some get 500 to 600 basis points of total GMV, with 80% contribution margin. So anything close to that? And if it's not successful, if we get 200 basis points of a percentage of GMV, that contributes to the gross margin, given that it's 80% of the contribution margin. So we're excited with this agenda, with the potential to monetize Lu, because we have a gigantic scale in Brazil with all the platforms we have in our ecosystem. Next slide. Magalu Banker spoke a lot about LuisaCred and the good moment for our services, PIX transactions Magalu Banker offers to companies of the Magalu ecosystem. It's practically in all companies of the group. Estante Virtual, Epoca, Kaboom, Netshoes, all of them using Magalu Bank services. And just like using Megalog services, we have maximum penetration in practically all channels of the ecosystem. But I would like to highlight the big avenue of growth for the second half of the year, which is the launch of the digital DCC. We're in the phase of testing. We have a controlled rollout. Mawadi will be able to speak more about this soon. For thousands of Magalu clients, we should have more than 2 million customers pre-approved. so we'll be able to roll out this system in september this is a product that will help our sales a lot particularly in high tickets where we are leaders but we tend to consolidate our leading position i'd like to remind you that own credit in the offline world has a penetration of about 40 but online it is very low so there is a huge opportunity to drive sales for higher 1P, 3P products through digital DCC. It's a great opportunity for the group. We'll consolidate sales, consolidate our leadership in higher ticket products where we are leaders, and it will help us continue to have positive results and contribute to the EBITDA margin. We are very excited with this possibility. And lastly, this is an agenda that we don't normally talk about in earnings conference calls but which i believe is fundamental because this is the passport for our future in terms of growth organic growth which is the evolution of our level of service magalu in july and we spoke about this in the beginning of the year and mentioned it in prior calls the encanta magalu magalu enchants This year, we focused almost all of our efforts, in addition to focus on efficiency and margin, we focused on improving the level of service to end customers. The best indicator to measure whether we are evolving in this or not is the NPS. Our consolidated NPS is 78%. corporate NPS. In January, it was 67, a significant improvement of 11 percentage points, very much driven by the improvement in the level of service of our marketplace. So it's a strong agenda. Level of service in the marketplace on average is below the consolidated level of service. We conduct surveys by units sold. The 3P has a lower number of So, of the 78, half of the surveys came from respondents that bought on 3P. 3P improved almost 20 points from January to July, so a significant evolution. This is one of the highest levels worldwide in terms of e-commerce level of service, considering important 3P basis. This generates word of mouth. we were not doing that well in the end of last year but we were able not only to improve but rather to reach unprecedented levels for the company even with a high share of 3p we had a lot of improvements time to cancel time to return products first contact resolution rate we had a significant reduction in several claims which was an important item in our gna so we have all customer experience indicators improving not marginally but substantially And today I consider Magalu's level of service undoubtedly the very best in the market. And we will continue to deliver this way above many of our competitors. And I'm sure that even with the growth agenda that we'll adopt for the second half, we'll continue to see improvement in customer experience. I'll turn the floor to Roberto Bellissimo to detail our financials. Then I'll be back to speak a little about AliExpress and we'll open the floor to questions. Thank you.

Thank you, Fred. Good morning, everyone. Thanks for participating on our earnings conference call. So I start here talking briefly about our financial highlights. We've already mentioned $15.4 billion in sales, growing 4% with a strong highlight for physical store performance, with the same store growth of 16%. a great increase on gross margin, EBITDA with more than 60% growth, and net income for the third consecutive quarter with net income and cash generation also being great highlights. And cash position and net cash that we're going to talk a little bit later as well. On the next slide, we detail a little bit more on non-recurring events. This quarter, we had recurring net income of 37 million BRLs. And considering the non-recurring adjustments, our accounting net income for the market was of around 24 million BRLs. And the net effect of non-recurring adjustments was of 13 to 14 million BRLs. And they're concentrated here in two major launches, just to explain. One is a positive tax credit, referring to the review of the calculated methodology of excluding ICMS from the calculation base for PIS and COFINS. So it's a PIS-COFINS tax credit that was integrated to our asset. And on the other side, we made a complement, reinforced the provisions related to default of around 200 million BRLs. which is the provision, it's in our liabilities, there's no cash effect. We had already had a default provision of close to 400 million at the end of last year. And due to the recent publication of this ruling, the legal advisors recommended that we complemented the provision, but it's a non-cash provision still pending the modulation of the effects and the decisions to be made regarding default. And we also have one million reais already deposited in court on our assets side. In addition to these two records, we had in other non-recurring expenses, in part related to closing stores, we closed 17 stores this quarter. of only less than 15 million BRLs. In the same period of last year, we had non-recurring expenses of 155 million BRLs in that line. So we had a significant evolution in reducing non-recurring expenses, which will continue to drop in coming quarters. In addition, the tax effects on this So we again go back to the evolution of the EBITDA margin that's very consistent, passing the main drivers that have been explaining our evolution of EBITDA margin. Again, it includes the growth of marketplace and service revenues, the increase of the merchandise gross margin, the expansion of fulfillment, operational leverage and the increase in profitability. of the physical store channel and the significant results of LuisaCred this quarter. On the next slide, I think the evolution of the EBITDA margin becomes very clear from 5.1% to 7.9%. This came mostly due to the expansion on gross margin that Fred already explained about the evolution of product and service margin. And it also came from the equity income that contributed with 0.6 percentage points. Also note that in SG&A, sales, general and administrative expenses remained stable compared to the same period of last year, very controlled. The allowance for non-performing accounts that also very stable. even considering the relative growth of our DCC portfolio in the last 12 months and the other revenues here that reflect the renewal of the exclusivity agreement with Kardec. On the next slide, we highlight the evolution of working capital in 12 months. We improved it in 1 billion BRLs, significantly improving in terms of inventory reduction, the expansion of the average time for purchases, monetization of taxes. So all of the main working capital points have improved greatly in the last 12 months. This quarter, there's not a lot of seasonality this quarter for working capital, so it remains stable. We have further reduced inventory, so that was offset somehow significantly. because more sellers migrated from the receiving and installment to the prepayment of receivables model, which is not as great for working capital, but it is very good for results for Magalu pagamentos and so on. And now we get into the second half of the year. That's when we have a trend of improvement in working capital getting into the best stage in terms of the year seasonality. And these numbers will continue to evolve in the second half. On the right side, We talk about the financial expenses. We've been significantly reducing our financial expenses since the beginning of last year. This quarter specifically, this dropped 25% compared to last year, 130 million BRLs less in terms of net financial expenses. It could have been even lower. It could have been 30 million lower if it weren't for the payment of the debt maturing in this specific quarter. So due to that payment, we had a prepayment of more receivables. And as you know, when we prepay receivables, we account all of the costs in an advanced manner. So that ends up leading to a mismatch in a higher volume of prepayment, generating a growing non-recurring expense of $30 million. which will be reduced in coming quarters. So the trend for the third quarter, and specifically the fourth quarter, is of a significant additional reduction in financial expenses in nominal and percentage terms. And that, irrespective of the interest rates, we've been working around the interest rates since the beginning of the year. Everyone expected the interest rates to go down faster, But still, we've been able to work around them with interest rates that are slightly higher than anticipated. We're improving and working capital, the capital structure, increasing sales through the PIX payment. And we believe that we have a very positive trend in terms of financial expense reduction. On the next slide. We see the evolution of cash flow with the operations over the last 12 months for this period reaching a record level of 2.2 billion BRLs of operating cash flow accumulated until June, even higher than the cash flow of 2020 and the height of the pandemic. And this is completely related to our evolution in EBITDA growing more than 60%, the improvement of working capital as well, and the reduction of the prepayment of receivables expenses. So due to this improvement in the operations cash flow and the capital increase we've done this year, we've been increasing our net cash position over the last 12 months in more than 1 billion, totaling 2 billion in net cash. On the next slide. we again show you that we've reduced our short-term debt by 3 billion this year. And the total debt was reduced also in pretty much 3 billion. So all of our debt now is in the long term, 4.5 billion compared to a cash position investment and receivables of 6.5 billion. So we have a very high rate of liquidity, even paying those 3 billion in debt. And I'd also like to stress that this quarter, it was very clear how net our receivables are. We discounted two additional billion in receivables. We prepaid more than two billion in debt this quarter and still maintained cash position and investments of two billion BRLs, significantly reducing our bank debt, without affecting cash position and financial investment. Next, again, showing the drop of the delayed payments at LuisaCred's portfolio, significantly getting to 9% of NPL over 90 days and 3% on NPL up to 90 days. It's one of the best levels we've got in our history. The results at LuisaCred significantly evolved as well. As Fred mentioned, it's one of the best quarterly earnings in the history of LuisaCred. And there's a very positive trend looking forward as well. This quarter, there was a reduction in the PDD expenses of almost 20%, funding costs of more than 30%, And we've just capitalized, Luisa Krad, preparing it for a new cycle of more profitability and gradually more growth as well. So with that, I conclude the financial highlights and turn the floor back to Fred. Thank you. Thank you, Roberto. So before we get to the Q&A, I'd like to highlight one of our most relevant product for the company that without a doubt will greatly help with our agenda for the online platform and the growth of our online operation, which is our strategic commercial agreement with AliExpress. It's a unique agreement for both hands. It's the first time that Magalu will list its own inventory 1P products in a third party competing platform. And it's also the first time that AliExpress, who has operations in more than 100 countries, a unified platform for all of those countries, but they'll deliver or they'll integrate their portfolio with a local marketplace. So I'd like to announce here that in the next, on the second half of August, we're going to begin with this partnership less than two months after the announcement. When we announced the MOU at the end of June, That's when we'll begin the sale of Magalu's 1P products in AliExpress's platform. We have high expectations for selling these products there. They don't sell the products that we sell. And the audience of the digital channels held by AliExpress in Brazil, it's 40% of our consolidated audience. So we'll start selling our 1P catalog for a much larger audience with great possibility for growth and sales increase for our 1P in the second half. And we'll start in the second half of the month of August. And in the first half of next month, we intend to launch AliExpress In. So that would be the sale of AliExpress choice line products in Magaluz platform. So there's thousands of items that will be included here in our digital channels. This modality is going to be run through Magalu's Remessa Conforme program. We will collect the taxes of this operation, and we're going to have it on Magalu webpages. You'll find AliExpress products in specific sessions, and it will also be included in the product lines. There are also products that completely complement our product. We're going to provide a much wider range of options to our customers. We estimate thousands of sales per month or actually millions of sales per month of these products, increasing our conversion rates, increasing our audiences. In addition to selling these products, I'm sure that is also going to help In the sense of network effect, it will help the sale of other 1P products at our platforms, as well as products from other sellers. I had a very positive surprise when the sellers, Magalu sellers, had huge goodwill with this initiative because they know that this will bring a greater audience to our platform, more visits, more stickness with the customers, more purchase sequence, and that will also be good for their products. So the way this replicated with the sellers was very positive. And we're going to be with them on the 21st at Expo Magalu. We're going to bring together thousands of sellers at Anhembi. There's going to be a large event. It's been a long time since we had Expo Magalu as well. So this partnership came to fruition very quickly. Hundreds of people from Magalu and AliExpress China, Brazil were involved. implementing this. It's a lot more complex than it may seem, involving integration of catalogs, APIs, shipping issues, and product information reviews, as well as all aspects related to cross-border payments that are complex issues. So our teams were able to implement this in record time, and this will already benefit us in the second half of this quarter. and fully in the fourth quarter. We're going to be very strong when Black Friday comes, and we're very excited with the outlook for the fourth quarter. We've done our homework in the second quarter. We've reached the beta margin that the market expected for only next year. We're in a situation that protects us from any negative possible surprise of interest rates. I don't want to be caught by surprise because of a decision of the central bank anymore. And we feel that one of the main drivers for interest rates decreasing was the American interest rate. So with this news about the weakening of the American economy and the trend of American interest rates going down will be important. There's also the tax aspect, but the main one in my head was the American interest rates. We don't need and we don't depend on any type of good news in that sense. We've proven that. But the trend now is that finally, there will be room for us to get good news, especially for next year. But again, we've done our homework so that we don't depend on that. We're protected against any potential negative surprise in that sense. And now we are consolidated with a growth agenda for the second half of the year without reducing margin. I want to make this very clear, that's not our goal. There's no trade-off in that sense. We have avenues to grow margin irrespective of anything else. With that said, I open to the questions and feel free to ask your questions. The directors are here to answer.

We will now begin the Q&A session. If you want to ask a question, click on the Q&A icon at the bottom of your screen. Enter your name, company and question language to join the queue. Upon being announced, you will see a request on your screen to activate your microphone. Then you must activate your microphone to ask the question. Our first question comes from Luis Guanaes with BTG. Luis, good morning. Vanessa, Freddie, Beto, I have two questions. First, Freddie, you spoke about the evolution of the EBITDA margin. which indeed is close to what you expected for the full year and you achieved it in the first half of 2024. I'd like to understand, is there room for additional gains in the margin due to operating leverage or new initiatives and so monetization of services? My second question is about the partnership with AliExpress, whether we can expect an evolution in the portfolio of services that we can provide to AliExpress. Also considering advertising, fulfillment. These are my questions. Thank you. Good morning, Guanais. Thank you for the questions. I just want to mention that our margin is above what we expected for the full year. What I said is that Magalu's EBITDA margin is in line with what the market consensus was for us for next year. We are way ahead in our agenda of EBITDA margin. We accelerated it. Because the strategic option, Luiz, was that we didn't want to be caught by surprise by a negative agenda of the Brazilian central bank and with financial expenses as happened in 2021. So we had a strategic choice to focus on our margin. I have no target of changing this because in the beginning of the year, everyone expected interest rates at 9.5, some people 8.5, and it is actually at 10.5. This adds financial expenses, takes financial expenses to a different level. For us, the correct solution was to increase the margin, bring our agenda forward. So it's above what we expected. This year, in my opinion, It's close to what the market expected for us in the end of next year. The consensus of the market for this year was 7.4. We are at 7.9 in the second quarter. I just wanted to clarify that. So to answer your questions, we do have growth avenues, ads and monetization of services. I'll ask Edu to speak about ads, Mawadi to speak about services, and then I'll be back to speak about AliExpress. Good morning, Luis. This is Eduardo. Thank you for the question. To speak about Magalu ads, I think that Freddy kind of gave us some highlights in his initial presentation. The main highlights in the first half was Celia joining the commercial team and the whole team that she built during this time since she joined. We have a complete trained team to deliver a lot of results in the second half. We also have a number of technology improvements on the platform to improve the results of the advertisers. So in that context, we believe that we'll be able to speed up even further our growth, which was 40% in this last quarter, Q2. Thank you. Sorry, I was trying to get an update here. I didn't hear your question. Could you please ask again regarding monetization of services? Yes, I'm sorry. It's just I was trying to get an update here about Louisa. Well, you see today, financial services and insurance specifically. Actually, credit and insurance are the two main monetization drivers for services. And LuisaCred has started to deliver part of that. We started with LuisaCred being a detractor of contribution margin. to being now a contributor to contribution margin and at the end of the day insurance has also been a great growth driver of service revenues that you see in the net revenues of the company looking forward we have two big growth avenues for service monetization which is evolving these two themes on digital. So we had DCC, we do have an agenda that is improving, that is evolving in insurance, in our digital assets, year and year growing 70 to 80%. So the trend is that in the coming quarters, we should see even more substantial growth and contribution margin coming from these two elements among our digital assets. Perfect. Super clear, Edu and Mawad. Thank you. sure thank you regarding the question about aliexpress the focus in the coming quarters will be to implement the current stage of the partnership which is selling our products our 1p that tends to drive the results of one being the second half particularly q4 You're going to have one month and a half in Q3, but for Black Friday, we'll come in strong. And AliExpress on our platforms will help a lot in terms of services revenues because we're going to receive take rates of these sales. And this is going to contribute to this number that increased 11% this quarter. It has helped a lot our gross margin. So we're going to have a positive impact starting in September in the last four months of the year. and other agendas will be developed later on it has been complex enough to have this stage of the operation i would like to add visits and sales so their sales on our platform and our sales on their platform so that's already complex enough we'll focus on that once we achieve our goals or over or exceed them which is my expectation we'll be able to expand the partnership to other fronts have a lot of complementarity very few conflict zones there's no reason why the partnership should not evolve but first things first let's do our homework deliver the first stage of the partnership first okay thank you freddie for the answers thank you for the questions louise our next question is from clara lustosa with itaú bba clara