Earnings Call: Q3 2022

Nov 8, 2022

Hello? Good morning to all. Good morning, ladies and gentlemen. In the name of Ambipar and the company, I wish you a warm welcome. We are obviously very happy to be here talking to you today. The company's strategy is an assertive strategy. Our numbers tell that story to you. The company has grown. Be it the environment, be it the response platform, they have really been adding value that adds value to all of our investors and our purposes. Our objectives are to give you your financial returns while the company grows sustainably with the purpose, the ESG purpose, the sustainability purpose, the decarbonization purpose. So these are very positive moments when we are able to see that the company's work and effort can be clearly demonstrated in our numbers and results. So here we have our great team. Thiago that we all know very well, our CFO, Dennis, our response COO, and Yuri, our M and A director. So once again, thank you so much. And now I will pass the word to Thiago so he can go into some numbers with you. So it is really a great pleasure to be sharing such amazing results with you. And these results make us optimistic. We're very optimistic in terms of the company's future being that we have been showing with numbers and results, what we can do, and how we're able to integrate so well. So we brought this team in to share some concrete examples with you about how we can integrate Synergize and how we have integrated in Synergize. So please and Yuri will be talking to us on those subjects. But let me go over some of the numbers of the quarter's numbers with you. So we presented in this quarter a growth, when compared to the second quarter to the third quarter of twenty twenty two of 59%. So vibrant growth thanks to organic growth. We like to emphasize that organic growth is our root growth. So we separated acquisitions from this quarter and compared it to without acquisitions, there was a growth of 21%. So this shows that AmbiPar is sustainable. And AmbiPar's legacy also grows a lot. Obviously, acquisitions and inorganic help a lot. But in inorganic and general growth, we have always been able to mesh organic and inorganic very well, which has been proving returns for our shareholders. The gross profits, it has 57.2% growth. So we outdid ourselves when compared with quarter to quarter, and we're going to talk a little bit about how we were able to assure all this growth. Terms of EBITDA, almost 80% above the third quarter of twenty twenty one. So strong EBITDA growth and strong margin improvement when we look at EBITDA. This thanks to acquisitions. As I mentioned in the beginning, we are able to capture the synergy, and there's a lot to come. So I'm sorry. We had a technical issue. Sometimes this happens, but let's keep moving here. So so growth of 59%, gross profit of 57, EBITDA 69%, and highlighting our margin improvement of 1.6 percential points. So improvement in margin and revenue, and that's a fruit of environment and response, which has also been able to capture quite a bit in this sphere. So we'll talk about this throughout the presentation. You can switch slides, please. So here's a little bit of our financial results. As we mentioned in the first slide, when we look at net revenue for the quarter, we're talking about an improvement of fifty nine point one point six. When we look at the, I always compare quarter by quarter, we can see 22%. So an increase of 14.8%. So impressive growth in terms of the last quarter, which shows that we are on the right path in terms of synergy. Over the last nine months, when we look at the growth of 59.1%, as you can see in the first what you saw in the first slide, that's 59.1% with gains and margins. So next slide. In terms of gross profit, which is something we're repeating here quite a bit, given the fact that we have been able to have expressive growth in margins in terms of gross profit and in terms of thanks to our cross operational and synergy work as well as some effects which are temporary from the second quarter and then in the third quarter. So the second quarter, we had an increase in prices. And now besides what we've been able to pass on to the clients in price, the fuel prices went down. Of course, as the prices go down, we were able to improve and control our price also. So margin increases in terms of the last quarter and 57.2% when I look at the accumulated for the quarter. So strong growth in gross profit of 68% points when compared to the other TriMet, the other quarter. When we look at gross margin, as I mentioned in the last slide, here I think we can specifically highlight AmbiPart Response's work in the last quarter where we had a drop in margin and a mix of prices, inflationary prices. And here, the margin gain came because of the inflationary price as well as the operational cross selling. So we don't wanna see this as a business with margin seasonality. What this is just something circumstantial that happened and that we also committed to improve in the third quarter and we did so. So you can see the response margin increasing environment as well. And here you can see the months where we didn't have as much expressive growth in our international businesses. Now international businesses have seen a small drop in margin, but I think we'll be able to bring that up to 30% very soon. And in terms of EBITDA, as we mentioned in the first slide, this is also EBITDA, which came in very strong, 69% higher than what was expected for last for last quarter of twenty twenty one. And when we look at this EBITDA in terms of the second quarter twenty twenty three, '20 '20 '2, quarter by quarter, we see a strong growth of environment as a reflection of the gross margin I mentioned here. I think Dennis is going to explain what we did in terms of cross operational and synergies with response in the third quarter, which increased our gains in margin that were the margins we're now being able to show and which we believe will be maintained over time. In terms of our accumulated, also we mentioned in the first slide that the growth is of Well, now I've talked about EBITDA margins in the last slide. So now discussing a bit of the gross margins and response, which was recovered in the second quarter in the third quarter, thanks to the decrease in fuel prices, we also see the group going up back to 7% also because of our repricing for clients. And potentially, we'll see this gain of margin vis a vis and the scalability that we gain as we standardize operations for environment as well as response and gain more and more synergy with our integration. Next please. Here you can see a little bit of our EBITDA calculation. So because of our legal responsibilities, we have to put our EBITDA math in. So our EBITDA is pure EBITDA. It adjusts within net profit, and then we'd reach the 272,600,000.0 EBITDA for the quarter. When we annualize this, the company has in fact gained an upper hand, gained us and set itself out. So we always look at them, do this, make this effort and include the annualization and the release. So this challenge for this way of presenting EBITDA in a trimester every three quarterly, able to compare bananas with bananas and oranges with oranges. So we reach the standard of this billion rands in EBITDA. So 1,000,000,000 in EBITDA. So the company extrapolating the 1,000,000,000 in EBITDA, which obviously makes us very confident for next year, which we believe will be a strong year with robust growth. So here are the net results. The company ever since last year, it's been it's been one year that after we con one year post IPO. And after that IPO, we started to leverage in the market so we wouldn't lose the opportunities for growth. So we have then seen robust financial growth because of this improved leverage, but which is still within the expected. So so this is below three, and we've always committed to that and are committed to monitor that on a daily basis. This interest rate is also going to be decreasing over time, and this is also within our program within what we expected for the investment of these results investment of these the results from these investments and we are also sure that this capital investment has caused the returns that we're now sharing with you. So it's all very much within what we had planned for this quarter in terms of growth and vis a vis the integrations and synergies which we will be talking about, which are strongly responsible for this capital gain. Next, please. Here you can see the consolidated net gains besides the gain in margins that were slightly pressured because of the financial results. We see the trend of an increase of this net profit because of the decrease of the interest rates. By the end of the year, we have the perspective of more gains in this area. As we all know, we will be making we'll have we have the SPAC funding from response. So our level of net debt will also decrease, which will bring us more potential for increasing this net income. As I mentioned, net debt has been flat even though we have been increased captures this quarter. We had a very interesting capture with a green debenture. We partnered with Bank of VITAO to work on some marketing and publicity material about this. We're very satisfied with that capture since it brought in a lot of funds to the company and increased our profile improved our funding profile. So we are improving our profile by using the strategy of fundraising with third parties and accelerating our growth. So we are very aware of our debt profile. It's always below the three points that we are committed to, and we are improving our funding as we move forward. And this has been a very this methodology has proven very successful. CapEx? Something we're asked about a lot? It's something people ask us a lot about, and it's really complicated. We, have the separation of what's account in effect with IFRS 16. So, with that capitalization regarding the lease contract for long term, which have not involved any cash, we also have the realized profits through the loan. We can reach this CapEx in the third quarter of twenty twenty two. About CapEx, we want to highlight once again that it is part of the growth. So we performed the CapEx considering the perspective and certainties that we will have the engagement of these contracts. There was CapEx also in the response front as you mentioned in the release for the new acquisition. So we're increasing the fleet in the Fly One with helicopters, which is where we have Ambipar Response Air and Marine Dracares as well with some other accounts. But we're, of course, always looking at this issue for the forward topic. So we're gonna be allocating this to bring in more revenue. So this growth is really due to topic that's very strategic. Providing using this for contracts that can be standby contracts or other long term contracts that bring in a lot of returns. So we've been very precise in the allocation of this resource. I just have that's important to highlight. So this investment also brings in returns that can be seen in this quarter already with the reduction of third party services and the composition of the COGS, which really improves margins. So this could be an interesting fact. So we can see the returns on CapEx in a short period of time after the mobilization in this situation with third party services in the COGS. Okay. Perfect. Thank you so much. We can move on to the next one. Well, I'm going to pass the call to talk about acquisitions. We had a different disclosure here in the last quarter, and here we want to demonstrate how the acquisition behaved after this some of the acquisitions we've made. So Yuri will cover this topic. Thanks, Shagel. Good morning, everyone. We have a history that's very relevant with these amounts of acquisitions performed by the company. We have a critical mass with the conditions to present a statistic that can really confirm the company's potential to create value. What we're trying to present here is a performance indication with the net revenue. We created some segments that are charging within the environment business and also geographical ratios in response. But what we've noticed is that with some exceptions in response like Sam, where you have an asset, we were extremely focused on improving the profitability, not necessarily looking at revenue evolution. We with this exception, we have a performance when it comes to the evolution of the net revenue and not only with this modeling, but also with what these companies were presenting before the day of the exhibition. So to give you some more details on the mechanics and mathematics, you could be able to reach a normalized scenario where these transactions happen in different timings. We took a look at the performance of the companies when it comes to revenue monthly, immediately prior to the transaction. And we compare this performance with the average revenue monthly that these companies had from the day of the acquisition up until today using this average. So as you know, these acquisitions took place since our IPO. And so we're talking about a maximum limit of two years to six months using an average of 1.5. We could maybe take a look at these indicators as revenue growth within the period, which are rates that are pretty strong and certainly higher than what we modeled for, which already indicates value creation in regards to the multiples we paid that was very relevant. And more than this, it also indicates the capacity that AmbiPath has to leverage and accelerate growth in these assets. So before we pass the floor on to Dennis and Chris that will give you some concrete examples of how we do this, I wanted to call your attention in regards to the response with how there's this correlation between potential to accelerate the development of these assets for geography. So today, as we have a platform in Brazil, it's really well established, very consolidated. When it comes to assets, have been operating with customer relationship. And when we bring in this new company, the potential we have to accelerate the development of this company is huge. And we see this phenomenon take place in Europe and also in The U. S. And I just wanted to emphasize the presentation we recently organized in The U. S. With the acquisition of Whit O'Brien, which will help us accelerate the speed in which we capture synergies upon the assets required, and that will, take place in the short term. Well, I think this really demonstrates our capacity for integration operationally. The members in Brazil, really reinforce this with this platform that we've established and the integration, with the M and A team, operational team, and all the diligence process done within the company's entire system. We have a capacity to provide immediate plug and play. We can provide more speed to these integrations. And so the numbers bring this in a very solid way, and we're turning this between Europe and North America. And so some examples we can see in the commercial process where we can analyze some opportunities in the company with everything that we were not able to handle before. But now through cross selling, we can fit this into each of the business units and bring in this revenue in house and from an operational perspective. So within the operation, we can see opportunity the entire portfolio of services, really characterizing what we presented ever since the beginning, which is our main assumption, which, where we can really become a one stop shop player, where we can deliver all of the services to customers, within, the situation the position that AbbVie Park positions us on this. It's something that we can already do in a very accelerated way, between different geographies. We have major operations underway. And I have an example here, with a big emergency that we've been working on in Gibraltar. So we can already integrate Teams in Latin America and North America and Europe, with the know how, the knowledge, how to manage emergency call between physical towers. And all of this has been, taking place in a very accelerated manner. So other operations like in North America with the end, earthquake event ended up devastating a big part of Florida. We also have, a team in North America working with operational synergies and also operating in some different work such as The U. S. These are some samples among many others that we demonstrate capacity for operational synergy and speed in this integration, and we can perform this in a very quick manner within strategic planning. That was very well established for the company. Very well. Exactly, Dennis. That was a great overview and summary, but I will try to get things backwards and once again tell you how the company was very precise in its strategy when we began with these two verticals, environment and response, as they are synergetic among each other and they can generate more value for the company and our customers and investors. So this model, we've noticed more and more with each position, we've been improving the model, performing some platforms in environment and in response. And it's important to highlight that everyone needs to visualize this clearly with different platforms in these two verticals. And so when we think about environment, we have the repurposing that is still undergoing a very special moment for the company with contract renewals, bringing new contracts to customers, for this platform. And then this continues to be an important option within the environment segment with important margins and an important geographic presence. So understanding the difficulties in the market, our local customers, with this, where we've been bringing this post consumption and post industry as well with all of the types of packaging that are in the market, really complying with the environmental legislation, which is so important, meeting the environmental legislation and bringing in more value to the company. So this is something we started working on. The acquisition of Bidas there was also important achievement that generates financial value and social value as well, which is the development of the cooperative spread around all of Brazil and that also bring in more access to recyclables, whether plastics, paper, glass, etcetera. And so we're following this important process in circular economy where we really have restrained end of the market. And and before it can really, within this, circular economy business, really surf through this wave, in this Blue Ocean, I'm sure. So, we also have the topic related to compliance and, this is also undergoing very important growth because more and more, industries, for mid size and small size that we would like to access the market, which we've already been able to achieve. And, more and more people have been engaging in this topic to be able to read the legislation. Of Of course, with decarbonization at COVID twenty seven, we're gonna be present. We're actually sponsoring, that event. We're very much involved in this topic. It's a topic that has been, growing a lot. And so when we view this platform in a very integrated manner, and these companies that we're acquiring really understand the purpose and can interact and have access to this type of material. And we see this based on the numbers with how we're really being very precise, which is the same case as the platform that we designed for response. Perfect. You can move on to the next one, please. So now I'm going to talk about the acquisitions in the third quarter. First of all, we can start with international and then we'll talk about national. Okay? This was an acquisition we performed in Canada focused on the environmental licensing, consulting services. It's a very important target with super attractive conditions for Ambipar. We're reinforcing our intention of really developing this market that's been very promising and has really compensated us with extraordinary results. And CPA is a company that is a national company and positioned us in a very important market. And it's an element that is very strategic from a perspective of environmental protection and CPA brought in a team that was very skillful, which was a very good acquisition. It's already brought exceptional results. And so we're also, Sertanki, which is a company that specialized in cleaning tanks, very strong relationships as well. And this is our first operation in Las Vegas as well, which is also a drug screen that made us very excited. We've identified some great opportunities there through the investments through this period. So then we also have all of the co processing work as well, and we've been inserted in different cement companies substituting the petroleum coke. We already have other companies performing this, and Blue will complete this geographic presence located in the, Sierra region. So, we also have Berlice, which is working on reverse logistics with a 600 ml bottle and Heineken bottles. So it's a really important market. They recycle. Both of them are focused on one of them is focused on the pool models and the other one is just on the straps and glass straps and also the circular economy. As we have said, I already mentioned. This is an important acquisition for the development of this process in a franchisee model and also in a structuring model so that more and more we can have access to all of recyclables, so in all segments. All right, we can move on to the next one now. So that's pretty much it. And now we're going to open up for Q and A and after we'll have the closing remarks. Yeah, I just want to take advantage of the opportunity to discuss the opening of the training center in The US, which is an important milestone and achievement in the history of the machine to, and for response at a global level. It's one of the biggest training centers around the world, 70 square meters 70 square kilometers. Sorry. And we participated with the response executives in this inauguration in Colorado and The US with the presence of the American government, in the transportation sector. And, this is where Ambipar has become has begun their operations with a major process for the training and operations in North America and the opening with the Amipar customers in North America and around the whole world because our training centers have the capacity to receive and welcome customers from all over the world. So I'm going to move on to questions and answers. I know our time is a little tight. The first question here, but we can talk about the strong growth in the third quarter of twenty twenty two. And if this was new customers or customers that were already serviced, I will answer here. It's a bit of a mix of both because we always talked about how we have a possibility to also have this, important share of wallet. So within customer sites, we can grow a lot. Sometimes we start with one production plan and then we add new plans from those customers, which is example here, big paper companies or even pharmaceutical companies, or even within the customer's side, due to their organic growth and also new services we incorporate. So we start up with this service and as we perform the acquisitions, we increase the addressable market and portfolio of services and grow in that customer. But with new customers, I'll pass the floor on to Chris so she can talk about these points in case a little more. This is really important, as I will mention, because throughout the time we've been working here, our work has really been doing this. So the first thing is we wanna keep our activities in the customers we already work with and be able to transfer, these adjustments to prices, have a very healthy financial financially healthy contract. We'd also talked about, how we were readjusting these accounts and transferring increases in seasonal prices, etcetera. This is a very important topic to commit what we have to the company and to you. And we have some renewal processes also for contracts that are very important. We were able to capture, especially the management and repurposing with new customers and many others that we were able to work with new for new industries in the paper and pulp sector, which are very significant contracts. We're deploying new contracts and also the circular economy, which generates more value. So we have many opportunities within the circular economy and this generates, of course, some value within management contracts. And so what we were really valuing with the circular economy concept, When I think about this integration and this mix and environment, this generates a lot of value to the company. So Dennis is going to talk about this a bit with the new response contract. While response has also been at a growing curve with many different operations and contracts that have been growing in the company. As we had already mentioned in the last conference, the issue with the fuels, which was an important point. We've been working with the transfer, and also so we can also work with the use and consumption of the coal, which is also a reflux in our last result. So I'm going to pass on to the floor to Lorenzo's question with relevant CapEx related to the verticalization of the process that is underway and if you have synergies and more margin gains. So, yes, it's relevant CapEx and it's part in the release. And we also disclosed this as well. Part of the CapEx has been, this process as well with the prioritization of our assets and activities, but also the standardization of this process with PERSE also with the l one. And in the closing, we'll probably talk about widow brands as well. That will certainly bring in a potential for growth that's huge here with the transformation acquisition and it's also helped with margin gains as well in the North American market. Third party services and, for this to happen, it was necessary to have a markup. So, yes, we've already discussed a bit and the question was, is this CapEx going to help to improve the sales and margins in this quarter? How many months ago was it performed until it became operational? Could we expect this improvement in the margins and more sales with CapEx additions will continue to happen in the next quarters? Yes, this certainly is what we were discussing during the presentation. This question came in the beginning, so maybe we've already covered this in the presentation. So the average term per CapEx, I don't know, would be like three months. The market changed, we've been talking about this with the market for the OEM. That's been really changing. So the average term for the delivery of equipment is six months, and we continue to maintain the commitment. This, of course, also considers third party hires. So while I don't have my own internal equipment, I would have to perform the allocation outside. And so what's interesting to notice is that when we talk about this a lot, and I'm gonna once again invite you all to really visit and all of this, which is a huge opportunity to give you a little more tangibly on everything we say, during the session here. So you can understand this process of the closing, with the evolution of the CapEx, how this operate how this works, and so that we can really even deploy this. So the CapEx really represents the following. We are at a very special moment in the company. We are bringing in new contracts with new clients and new customers for the company. And this is providing more tangibility. And that's why we always suggest that you come and visit our operation. So one more question from Wagner here. So he asked if this was used in the new Bumera factory. And the, access to the new raw materials. Well, yes, I think this is a set of factors, and I can't say it's just about the, what the decision is due to Boomerang. I think there was an important level of growth and all of the other cases also had important growth. So when I see the individual growth, I would not like us to look at this individually anymore, considering one company or another, but as a platform and I will always mention this, Circular Economy because this is a platform that really is integrated in a synergetic manner. So, one business and what I wanted to say is that the circular economy business is important for the company and it brings in very good returns. So we're always gonna talk about this as a set which is gonna be a lot easier for people to understand because if not, they're gonna be just a bunch of different acquisitions. Right? Yes. So the platform in post consumption is that mechanism that retro feeds itself. So, that's why I didn't wanna talk about this per company, but really, by the business because one supplies the other and that was always the focus of AmbiPar and these, circular economy points. So Osaldo is an individual investor, and he wants to know about if there's any should he find investment basic, sanitation? We always look at industrial waste, actually, from the environment perspective. So to be very quick in my answer here, no. Then we have a question from Juan from PWCE, and he's asking about the low performance in the LATAM the response shares and if there's any positive for this. What happened is that in the first and second quarter, for LatAm and response was a very big emergency that took place in Peru. It was a very big fuel distributor in the marine segment. And for the third quarter, we did not have any major events in response to the attempt. But for the fourth quarter, we already have this. We are currently at an emergency in Uruguay that's very big and also another big emergency in Chile. So most probably, we'll get back to the response LatAm revenue that's very strong in the fourth quarter. So, here, Luis is talking about, the probable recovery of the ICMS tax and the fuel cost. This is it's gonna be transferred to customers. Right? So there was a temporary effect. It takes a little longer for you to be able to achieve the price transfers and adjustments. It's a negotiation process, and you have to align some type of negotiation that's a little tougher. But we've been able to transfer this and, we are always very much protected with the financial economic balancing of the contracts and we always get back and request this price adjustment as part of our day to day activities right now either because of fuel costs or any other input that increased its inflation price above inflation. So another question from Gonzalo, congratulations on the results. And is it reasonable to expect an improvement in the margins in the next quarter as the company continues to gain scale? What's the behavior of margins in the entire environment, right? So, yes, it is reasonable to consider this. Scale does bring in an improvement in margins, of course. But when we talk about environment, we have an improvement of margins a little smaller than when you talk about the growth per revenue, because a % of the costs are variable. But yes, we have had some scaled claims. And when it comes to the total waste management, which is our main focus when you grow within the customer, you have a single contract manager and you have operational scales that bring in margin gains, both consumption, post industry access to raw materials and also, scale gains and margin gains, even the decarbonization work. So, yes, it is reasonable to think this. Within response, you have this patent standardization of the operations, bringing all of this into the platform, the response platform. And then the behavior of the margins between environment and the cell. DeSalle has been growing in that side with the environment. Last time, it's just all DeSalle. And it grew after the acquisition by 17%. So it's been growing a lot. And we've been able to deliver good results in regards to the Dow. Now it became AmbiPar environment. So Gonzalo and Chile and you're going to see an important gain in the brand. So it's all going to become AmbiPar environment with Chilean territory. When it comes to margins, this is an ongoing process and, the SAU has reached an important improvement in margins. And so we committed to deliver the margin on a short mid term, that's from two to three years. But it's important to mention that when we talk about this call, we are also sophisticated services more as that we provide there. So whether this is, with the repurposing, with the paper and pulp industries that are very important in the region, and also the construction of the project, the Gilead project that's gonna add a lot of value in the region, bringing this complementary process just as we have this circular economy topic. We are also transferring this technology with all of the technology and the platform actually. So when you generate value to these customers, the margins and returns naturally take place. And so what we considered a major value, including the participation of services, with this is a project that's under construction, and there's an expectation for delivery in May 2023. So Leonardo from Atreus Investments has asked about if we would and this is a consolidation effect as well, and this is worth explaining once again. And that slide on the organic growth after the acquisition of the companies really sums up this effect from the controller. So I think that's pretty much it. We have minority shareholders also growing that are more profitable. On the other hand, we have the debt level of the holding, which is, with the interest rate also impacting a bit of net income of the income. So as the curve in the interest rate also, has this trend to drop, the net income will also grow and this, of course, becomes more has more cohesion when you look at the numbers. But it's a consolidation effect that demonstrates that companies have been performing very well, as you can see in the integration slide. So, Julia from SunSun there, talks about just two follow-up questions about the growth, maybe just more to an increase in volume. But what we've seen as trends in the next quarter with the average return rate that you expect in the response to contracts that were hired through for cars and drywall. We've already talked about three questions in one, right? Yes. So this case is a bit of both. We had an increase in volumes, as commercial structure, biophilicum, as well. With these meetings with them, we've invested a lot. And primary process we mentioned to really accelerate this growth. So, yes, there is more credit generation. And if you look at the market, for the next year, especially, after COVID twenty seven, which have an increase in prices. But we also have very interesting projects when it comes to carbon. First of all, reinforcing the teams, and the commercial team, that's very different, Direct technical, and so we have many new projects that will take place from next year onwards. It's very important for the new projects that already existed there at that moment in the harvest. And we've already been able to commercialize and then the price also with the overall market reacting very well when it comes to the carbon prices. So once again, Coke is always moving along in a stronger way in Brazil, having a very important commission where besides Ambiqar every year we have a project that is very bold for Brazil and we believe that by the end of COVID twenty seven, we'll have a real booming market in this decarbonization segment. So for next year, we have very strong optimism towards the growth and returns. And so the second question is about the average level of return in the response contracts. So what we mentioned with Taiwan and Dragaris, they really follow, with our pricing model. And so it's great to talk about this. One of the main points, when we perform an acquisition is really about the pricing and how we can add our expertise in pricing. Ampere, of course, has years and years of experience, of how to operate, make the contracts and price them in the best way by bringing these returns that are reflected by our numbers. So, so they follow that target of 24, 20 five percent. And we, at least saw this growth in Taiwan with, a private contract that's very interesting that will lead to, revenue about almost R1,000,000 per month. And so that's very important. Yeah. It's not only about revenue, but also about the returns, right, on invested capital. And so, here we have on the status with the tax deal. We've already gone through the second phase of requirements for PCC, and now we're just waiting on the bureaucratic issue to be able to perform the closing of the deal. What we believe is that, unless we have any unexpected duration, by the end of the year, we should have the closing of this deal. I think now we have Maeda from XP asking about, well, first of all, thank you and congratulations on the road on the results. Can you give us a bit more of the trade off on the CapEx and the uses of third party services and which would be these. Well, once again, during the presentation, we spoke about this a bit. And I think Dennis, couldn't give you an example even with response on how the structure is and, how we take a look at emergency services with our own assets, looking at what our acquired companies were imagining before and how we can bring in this greater margin level. So I think, the team that already visited Novo Odessa and Amvicar, you probably visited our, control tower and we've already had the opportunity to demonstrate how we operate this. We have this, hub within our control tower that performs the management of resources from third party, for regions where we don't have our own structure, to be able to solve some scheduled, emergency, some other equipment that would transport waste, etcetera. So we have a diligent area inside the tower, and we identify the zones and regions where we have high demand. And we've been substituting and implementing machines and equipment in the regions to be able to substitute third party hires that used to be done before. So this is happening in a very dynamic way. So at response, this is how things work. Perfect. And then, finally, I wanted to have a Yuri talk about what O'Brien's a bit and others, and the other one's already talked about this. We talked about the perspective for carbon credits, which we talked about a bit. One talks about the last time CapEx as well that we've already talked about a bit as well. So I think we covered all of the main questions. And the last one here before I pass the floor to Yuri is really about the exchange of part of the debt from the real to the dollar. Hence, we're keeping eyes open in the market. We've been looking at this closely with our advisors and we're really keeping eyes open towards any change opportunity to exchange the expense above our cash generation, which will provide so we can be more and more present in our EBITDA process. So, thank you, Chuck. Guido brands is a brand and company that is really well known all over the world, on a global level. There's a portfolio of customers of over a thousand hundred names that are all customers that are blue chips. They're extremely renowned and well known in the market that hire Widow brands to perform logistical management, especially in the ocean operations. But essentially, it's a company that works on management and consulting and services under the conversion for cash conversion is very high because it's a business model that is a lot lighter from a perspective of CapEx allocation. For Ampere, it's extremely strategic because there is a rule that is applied to whatever is spent with management to not even be 10% of the value allocated to the execution of that emergency. And we're talking about a company that last year made $200,000,000 in revenue. So, through Willow branch, you have about $2,000,000,000 from a perspective of equipment allocation, upon performing and executing the emergency. So this is the market that we're present in, historically. We plan to work more and more in this sector, and it's a relevant opportunity for us for Ambipar to expand its operations in the North American market. Especially, I wanna remind you that your customers, at Willowbrands, operating different modalities, ocean, highways. And since they're mostly companies from the oil and gas segment, petrochemical suppliers, and transportation companies, they demand this level of service and the other modalities, and many of them actually are our own customers out of out of The US. So they know Amipar with, Amipar to have strong credibility to service them. So we've also, acquired widow brands from CCAR, which was acquired it was acquired from, a private equity fund. And that's a company that has all of the necessary procedures and governance management processes, compliance processes. So it's a real complete platform that will be very useful for us to continue our accelerated growth. And as I mentioned before, it's a platform that will really allow us to capture the synergies more with a bigger volume of synergies in the next, periods, we're going to be working on. Perfect. That's it. Thank you. So the time goes by quickly. We would love to stay here for more and more time because we have a lot to share and stories and everything. But I just wanna thank you all for your time and availability today. The company is open to and available to clarify any other questions you may have. I would like to get back to extending this invitation to whoever has not mentioned about that sale yet to really come and get to know us closer and perform the site visit at our operations so that you can have a tangible perspective. I wanna thank God also to give us the strength, to really be able to run after our results and earnings and achieve them. And for the next quarter, we hope that we have a lot of good news as we did today. So once again, thank you so much and have a great afternoon. Take care. Bye bye.