Earnings Call: Q4 2019

Feb 21, 2020

Good afternoon, and thank you for standing by. Welcome to the B2W Digital Company's Q4 2019 Financial Results Teleconference. Here today with us is Mr. Raul Lapagies, B2WLRO and Mr. Fabian Ticavi, Losersamerica's IRO. To allow for a better follow-up of this webcast, we'd like to suggest that you use the PPT available atri.bichaw.digital. This Next, we will open for questions and answers when further instructions will be provided. The webcast replay will be available after it ends for a week. Before proceeding, we'd like to clarify that any forward looking statements made during this conference call regarding B2W's business prospects, financial and operating projections and goals represent the beliefs and assumptions of the company's management as well as current information available. Forward looking statements are no guarantee of performance. They involve risks, uncertainties and assumptions. Therefore, they depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions and other operating factors may affect B2W's future performance and could lead to results that differ materially from those expressed in such forward looking statements. Now I'd like to turn it over to Mr. Jaume Lapages. Please, sir, you can proceed. Good afternoon, everyone, and thank you for your participation in our call to announce the results for Q4 'nineteen. This call is especially significant because it is the time when we conclude our 3 year strategic plan from 2017 to 2019. I will start on Slide number 3 with the quarter's highlights. In the Q4 2019, total GMV reached BRL 6647 1,000,000,000, a growth of 30.9 percent. Marketplace saw a growth of 47.2 percent, reaching BRL 4267,000,000, accounting for 64.2% of the company's total GMV. Also noteworthy that the result was driven mainly by exceptional Black Friday event we had. For the 9th year in a row, we're leaders in traffic and sales during that seasonal event. Using the EBIT figures as a reference, we had about 40% of market share on Black Friday. Customers once again chose our platform for their purchases. They trust our reputation, the quality of our delivery and the service that we provide at B2W. In the quarter, we also reached important operating results with the addition of 8,000 new sellers and 9,800,000 new items. On Slide number 4, we will be addressing the highlights of 2019. Total GMV reached BRL 18,778,000,000, a growth of 25.1 percent. Marketplace reached BRL 11,589,000,000, up 49.7 percent and accounting for 61.7 percent of the company's total GMV. We closed the year with an assortment of 29,500,000 SKUs, 46,800 sellers come active to the platform. We have thus exceeded our initial objectives of closing the year with 20,000,000 SKUs and 40,000 sellers. Now moving on to Slide number 5, we can see our cash generation flow. Q4 2019, we generated BRL479,000,000 in cash, a growth of BRL265,000,000 when compared to the same quarter of 2018. In 2019, cash generation totaled BRL190 1,000,000, up BRL 429 1,000,000. The company has thus closed the year with a net cash position of about BRL 1,000,000,000. The results from 2019 show that we have reached and accomplished an important balance in our business, which allows us to grow and generate cash at the same time. On the next slides, we will highlight our 3 year plan main accomplishments in 2017 through 2019. On Slide number 7, we can see that after a year of transition from sales from 1P to 3P in 2017, we picked up speed in growth, closing the 3 year plan with a CAGR of 80% in GMV as opposed to 12% of growth of e commerce in Brazil. We have thus been able to associate the transformation of the company's cash generation profile with gains in market share. On slide number 8, we show other highlights of the same period. Total GMV moved from BRL12 1,000,000,000 in 2016 to about BRL 19,000,000,000 in 2019. Marketplace moved from BRL 2,000,000,000 of GMV to about BRL 12,000,000,000 with a stake in total GMV moving from 18% in 2016 to 62% in 2019. The numbers around sellers and SKUs grew exponentially for the last 3 years. Total connected sellers to our platform moved from 4,700,000 to 46,800. The number of SKUs moved from 2,700,000 to 29,500,000, dollars a growth which was tenfold between 2016 2019 under both indicators. Lastly, cash generation moved from a consumption of BRL 1,600,000,000 in 2016 to a positive cash generation of BRL 190,000,000 in 2019. That sharp growth is driven by the digital platform we put together, as we can see on Slide number 9 going forward. In 2016, we showed for the first time our digital platform, which has been going through constant transformation and allow the company to move from e commerce to a hybrid business model, which is the best possible combination of 1P, 3P and digital solutions. Likewise, just as our digital platform is attractive for customers, it has also become attractive to strategic partners as such as suppliers and marketplace sellers, generating a network cascading effect, which led to a virtuous and powerful cycle. The combination of digital platform with our financial model, which is very optimistic about this new cycle starting 2020 and going through 2022. Our dream is to more than double our size as we continue to generate cash as well. As said on Slide number 10, we are ever more prepared and motivated to transform customers' experience, offering everything at any time, anywhere, which will direct our decisions to maintain, retain our current customers and attract new clients and customers. The convenience for customers addressing different occasions for consumption will guide our growth base and will drive or will be driven from the intensive use of algorithms, data and analytics, aiming at improving the digital experience of our customers. The focus will be to become even more relevant in customers' everyday lives. Everything, anytime, anywhere can be translated into a continuous increase in the offer of products and services, improving and expanding our availability and delivering wherever the customer wants. With that, we have the objective of reaching over 100,000 SKUs and over 150,000 sellers at the end of 2022. To accomplish that training of growth, we continue to invest in the creation of a complete ecosystem, which includes our mobile platform, Lex, O2O initiatives and Ami, as we will detail as we move forward in the presentation. On Slide 12, we show the evolution of our mobile platform, which already accounts for more than 80% of traffic. We closed the year with an installed base of 31,000,000 apps and an MAU of 22,000,000. I'd like to highlight that in 2020, we ranked number 1 among the most downloaded apps, both under Android and iOS platforms. On Slide 13, we highlight LIGHTS, our shared management platform for logistics for both Americana and B2W. Currently, we operate 18 distribution centers located in 7 states on top of 200 hubs, 1700 physical stores for Americanas, an asset light platform to distribute, which counts with more than 5,000 connected vehicles. With that, LATs is the largest transporting company of e commerce in Brazil. In B2W, LATs operates 100% of our 1P deliveries besides offering logistics solutions for 95% of the marketplace sellers in 2019, over 50% of all purchases made at our site, 1P and 3P, were delivered in up to 2 days. On Slides 15, 16 and 17, we highlight the growth of our initiatives for O2O for both Americanas and B2W, which have been helping to improve customer experience and have been growing significantly as well. In the past 12 months, O2O initiatives combined exceeded DKK2 billion in GMV, a growth of 153%. On Slide 15, we highlight the click and collect. In 2019, we became the largest pickup point network in Brazil with over 8,000 connected points, including Americana's stores, sellers' outlets and partnered outlets. We operate in over 5,000 cities in Brazil, and we offer access to service to 99 percent of all Brazilians. On Slide 16, we highlight the PEGI NALOGA OJ, which is available across the 1700 stores of Americanas, allowing customers to buy online and collect the product in up to an hour. That purchase mode is quickly growing and has reached, in December, the level of 100,000 orders being placed. Moving on to Slide 17, we highlight the ship from store mode, which is available in over 100 cities in 13 states, totaling 300 implemented stores. The service allows customers to buy online from the closest store and allow them to receive that in up to 2 hours at the address they have chosen. On the next slides, we'll be talking about Ami, our fintech and mobile platform for the Americana's universe. In only 18 months in operation, Ami has shown impressive results, having reached 6,500,000 downloads. In the year last year, and it became more relevant within the Americana's universe, increasing its presence in B2B brands and finalizing the rollout to the 1700 physical stores. On Black Friday, Eni sold over BRL 800,000,000 in TPV, accounting for 17% of all online sales across Brazil. Throughout the year, we also sped up our growth strategy outside the platform, the so called off us. The trend includes some important partnerships as shown on the next slide, Slide number 20. The idea is to speed up our presence in the physical world and in the online universe. Ami has established partnerships with different credit cards and different retail technology platforms, including Cielo, Stone, Mastercard, Lynx and VTechs. Currently, Ami already operates in over 1,500,000 commercial outlets. In December, we signed a partnership with Banco DO Brasil for credit card offerings. This partnership is one of the initiatives aiming at developing our business plan to provide credit for both customers and store owners. This way and as observed on Slide number 21, Ami has been moving forward with its strategy to become a one stop app in the market. For that, we need to have a complete app servicing all needs of the customers and from retail store owners. Today, we have already made available 35 features, allowing us to be present throughout the day for clients and customers. So 2020, we're really excited about AMI development, and we will have more new things coming in our road map for that functionality. On the next slide, I'll take the opportunity to update you on the initiatives, which we introduced in December on our Investors Day. As for the opening of new DCs, 3 of the 7, which were announced, have already been opened. Throughout 2020, other 4 DCs will be opened in the states of Parana, Spiritu Centro, Cera and Bahia. We already have an office in the city of Shenzhen in China. And this year, we'll open a second office in Hong Kong. Last month, we started the rollout of the EMI Pro, a PBV and ERP mobile solution with the launch of the lite version, a self-service model in which the store owner downloads the app and already has access or immediate access to the full solution. About our partnerships, we are now concluding the integration with Snam. And till the end of the Q1, Almir will be available in over 400, stores 400,000 stores. The credit card with Banco DO Brasil is still in development phase and will be launched in the first half of twenty twenty. Pedala and Curie companies are already integrated to our operations, both for LEDs and LE Flash, allowing the use of new delivery possibilities right now in the cities of Rio and Sao Paulo only. Another highlight we showed in December was our dream of reaching 100,000,000 items by the end of 2022. As we said back then, we have closed the year last year with 29,500,000 SKUs, which leaves us very confident that we'll reach the proposed challenge. On top of that, American Express has 6 stores under the digital model already at work. This new model is highly integrated with other O2O initiatives with a highlight for pickup at the store and to the assisted sales of all the assortments made available by D2W. Lastly, before we move on to the Q and A, on Slide 23, we'd like to thank our team for their dedication and enthusiasm. Having the best people around is an essential part of our strategy. In January 2020, we were certified by the Great Place to Work, an important acknowledgment, but we continue to evolve and engage to reach increasingly more challenging targets, always with a focus on the client. We have built throughout the years a top rate digital team with a technological DNA and which breeds innovation. Our team is the best possible combination of young people, young talent and experience. The 13 acquisitions of companies we conducted between 2013 2015 were responsible for the acquisition of many new talents. We are proud of all the successful onboarding processes and of the high retention index we have of all those bright minds. Currently, we have over 1500 developers who are building the B2W of the future. In the past years, we have reinforced our EVP, employee value proposition, emphasizing our brand, which is already as recognized as other global technological companies. These were the main highlights and main comments I had relative to our performance in the Q4 of last year. We now have time for some Q and A, and then we will address questions you may have. Thank you very much. Thank you. Ladies and gentlemen, we will now start our Q and A session. Our first question comes from Thiago Macruse from Itau. Please you can proceed. Hello. Actually, this is Elena. Thank you very much. First question we have is actually related to KPIs. Can you share anything about KPIs, logistics? We have seen many initiatives in which it we have the impression that logistics is really improving. But we'd like to have a better understanding about how much of that converts into sales. So can you now change the time frame from 48 to 24 hours? And the second point, we'd like also to better understand AMIR Digital. We understand you are now sorting out some KPIs according to some points of sales. But what is on and off platform so that we have a better understanding also about its penetration outside your platform. Hi, Elena. Good Thank you for participating, and thank you for your questions as well. As to your first question about our logistics initiatives, I think our main focus now is geared towards breaking down delivery times for both 1P and 3P. It's important to mention that our main challenge today is at 3P. We have been working towards building our logistic network. As I mentioned throughout the presentation, that results from a combination from different DCs. There we have 18 DCs, a combination of that with hubs, the use of brick and mortar American stores for pickup locations. So that O2O integrated vision has provided one of our main competitive advantages. So on top of having a proprietary network in terms of logistics, which was put together dedicated to e commerce, we also have under the Americana's universe all the penetration that all the physical stores have, and that's unique to the business. When you look at this on a combined kind of the stores, physical stores plus B2W, that's our main competitive advantage when you compare with the competition. So we started using that to favor 1P. And today, 100% of the 1P deliveries are operated by LATs. And throughout the years, we have been able to manage to build that also under the 3P. We have a piece of data saying that 95% of our B2W sellers are already using at least one of the solutions provided by LATs. And when we look at the sellers front using LATs solutions, we have 2 main KPIs: delivery times, cost of delivery, which on average provide a benefit of around 50% when you compare that with market solutions, both in date and cost and number 2, when we improve the quality of service provided. We shared with you some of that during our Investor Days back in December, but for the past 2 years, our 3P grade converged towards our 1P grade. In other words, we have the same level of service for both fronts. That's unique in the market, and it was only made possible because of our network. Looking forward, we are ready to make a big leap when we look at O2O. So ship from store, for example, which are already present in over 300 stores, we can deliver to customers in under 2 hours. That's really transformational in our business and our industry, transformational for our customer base, serviced by B2W and LASA. So we have a series of initiatives we have been talking about lately, which without a doubt will transform delivery dating into those they will no longer be counted in terms of base, but in terms of minutes. As to your second question for Ani, it's quite strategic for us, the on us and off us. It's important to remember Ami has been operating for only 18 months. It's a very recent endeavor, but which has delivered quite significant results. As I said, close to 5,000,000 downloads in 18 months. So we're not breaking that number down, but what I can share with you is the 800,000 BRLs in PBV during Black Friday, also an impressive number, accounts for 17% of all transactions made in e commerce on Black Friday in Brazil, very impressive. In 2019, we focused in bringing relevance to AMI under the under economies universe on us. And last year, we started other partnerships, as I said, to speed up that movement and increase Ami's participation of software. This year, 2020, you can be sure that we're going to be going even faster and increasing our presence outside the Americas universe, which now sits at 1,500,000 stores, which work with them, and we expect that number to grow exponentially in the coming months. Our next question comes from Joseph Giordano from JPMorgan. Actually, I have some questions. Where we see an increased integrated operation between Americanas and B2W, not only in our logistics, but how much of the company's GMV is coming from this combination between Americanas and B2W. So I believe that RASA is probably the major seller of this company. And also, we see an increase in assortment of the company also coming from Americana. So I'd like to ask you to please talk about the growth within marketplace. And also, can you please quantify that a little bit? I believe that this is a little bit above the company's leverage. And finally, can you please talk a little bit about your in China, private labels? And also, how can that have an impact on Americana's growth? And also considering some exclusive sellers from B2W Terrassa. Joseph, good afternoon. Thank you for your questions. After your first point about the O2O, it's the first time we share that data in our release that total GMV coming from those operations exceeded BRL 2,000,000,000 in 2019. So we can see it's becoming increasingly relevant. When we look year on year, all those initiatives grew by 153% in terms of GMP. Largest Americanas on Black Friday was the largest seller in number of SKUs, and it's important to mention that how our assortment complements within. So we have a lower ticket. So in GMV, we're not the main seller. But when we look at the number of items, the number of tickets, we rank way up. And that only serves to reinforces the beauty of this integrated universe. A lot of synergy and when we look at our customer base, we see many opportunities. So I do believe we have moved to a different level last year. And for the next cycle, 2020, 2022, we expect to have a high level of integration. And we made it a point of announcing that on our Investor Day. We do believe we're going to be changing to a different level or moving customer experience to a different level because opportunities there are quite relevant, quite clear. When you talk about giving access to an item within 2 hours to the customers, We are also including the possibility or the endless possibilities that we have with Ami. So we will be increasingly more relevant in customers purchasing everyday habits. So instead of buying a beer in Carnival with money, they'll be using honey. They might buy online and pick the merchandise up at a gas station, at a post office location. So there are endless possibilities, any many combinations. So the Americas universe as a whole has is positioned in a very unique place in the market, a place that nobody has access to. So the next cycle has to do with the best use we can make of that favorable position. As to your second question, that's a very recent initiative. It was launched in March, has already shown positive results, that cross border strategy. We have over 30,000,000 connected items in our assortment at the end of 2019. That's an operation that we're talking about, which has less than a year. And many new things going forward will be announced. But it's important to mention that it complements B2W's assortment base, just to give you an idea. When you look at the B2W's average ticket, it's over BRL 300. When you compare that with the cross border AVer ticket, which is at BRL 100 BRLs, so it's a new item, which is complementary to another item. And that, of course, reflects our customer base. For example, in November, the high sold item was a cross border item. And the cross border operation was the one that brought in the highest number of new customers. So we are very, very happy with this operation, and we have no doubt that it will be a very important contributor to our dream of increasing the company. I'd like to ask you to repeat your final question, please. I forgot what it is. Operations in China. So can you please comment if you're going to have also some exclusive assortment? And with that being conflict with American Osmano. So what can you share about it? Okay. Thank you. In China, we have opened an office in Shenzhen. A second office will be established in Hong Kong this year. And we're not focusing only on cross border operations. The intention is to have a basis in China, a very important country, especially in terms of supply chain. So when we look at our own brand items and important items, the operation in China gains a lot of relevance. It will help us survey new items and reinforce our strength in those products. And as for the cross border front, the idea is to identify new sellers and bring them in. So that's a point for us to bring more new talent. We see a lot of potential in working with the excited with that. But it's still a bit early to give you a more extensive follow-up. But the strategic decision was that to reach 1P and reinforce the connection of new sellers and bring them into the platform as well as new suppliers. So can you please clarify the 2,000,000,000,000,000,000,000,000, I think there is a Pericam collect and there is part of it that is having LASA as a seller. So can you please try to quantify that for us? Thank you, Joseph. Yes. It's quite strategic, right? We cannot disclose those numbers. But at the end of the day, it's important to emphasize to have multiple combinations to access. Just as a reminder, today, we have pickup at the store. The customer might buy something online using B2W's website and then pick up the product up in up to an hour from the one of the Americana's store. We have the ship from store model already operational in over 300 stores where customers receive products in up to 2 hours at the address they have selected. With the ship from store, we have been building our own proprietary platform, the Cloudflash. And the 3rd model is the Click and Collect. We closed the highest or largest pickup point network in Brazil, over 8,000 pickup points, 5,000 cities and we have the endless shelf approach, which are shelves within American Stores where they can find B2W's assortment in great availability. And we are also rolling out the old to old for the sellers' stores because based on our data, sellers 80% of sellers also have physical stores. I won't be able to give any more numbers, any more color on that. But when you combine all of that, we're talking about EUR 2,000,000,000 GMV in 2019, a growth of 153%, and that's just the beginning. Again, for the next cycle, with the new OTO initiatives, we expect to have an even stronger relationship with our customers. Now Gustavo Oliveira from UBS has a question. I'd like to continue this conversation about China. So what impact do you see in this inert supply chain? And what impact has coronavirus on that? Are you monitoring that? And also, you already have a penetration. You already see the contribution, of course, further in your business. So what impact would that have in growth? Today, it may be still low, but I'd like to understand what you foresee the future how do you foresee the future? Gustavo, good afternoon. Thank you for your question. As to the coronavirus situation, the first point you raised, we have been following up on that very closely. 1st and foremost, we empathize with all the victims. It's not just or not merely a business issue. Real people have been affected. Human beings have been affected. And but when we look at the impact on business, the current scenario is still not very much or very predictable, especially in terms of the effect that coronavirus might have on the chain from end to end. Our first measure was to reinforce our inventory. We have been doing this since early in the year, especially in terms of smartphones and other electronics. We have heard that some suppliers have shut down. So our first initiative was to reinforce that inventory. We do not expect any material impact in the short run, especially because we were getting ready for it early on. But in the mid- to the long run, it's difficult to predict, as I said. We are following up on that. But I don't think anybody has an answer of what or how that might play out in the economy as a whole. So and again, we have reinforced our inventory. So for the Q1 and early Q2, we are well positioned to provide and supply in terms of assortment. As for the cross border issue, as I said, it's a very recent operation. It was launched early last year. Our main vision is to work in terms of complementing our inventory, is to meet a new demand that we saw emerging from customers. So it is quite complementary to what we already do. We have seen very positive results so far, as I mentioned just now. But when you talk about impact on cross border, the coronavirus on cross border, the main impact is on delivery dates. Once again, we have been working hard around that situation. The first initiative was to expand delivery dates and delivery terms. Cross border customers already expect a longer delivery term. So it's, if you will, easier to accommodate all those anxieties. So the effect of the cross border on the whole is not very significant. Our vision as for the cross border front is more geared towards the longer run. We were quite diligent. We have increased delivery terms, and we are quite confident that the effect on the company's total GMV won't be major. All right. Thank you. I have a second question. Can you please give us an update on the FEMECO? I do not know if you have already had this meeting. They are talking to operators. And also, what are your expectations regarding regulations, regarding also taxation? So how are you standing for those negotiations? Thank you, Gustavo, for your second question. As for the Fenercom issue and in that chamber, we are quite favorable in providing more transparency to marketplace transactions. We see that is very positive for customers, for sellers, for B2W, for all stakeholders involved. It's important to operate legally. We have been very active in those discussions, and we are totally in agreement with the Chamber's decisions and understand it. When we look at the marketplace, of course, it is a very recent model in Brazil. So we are moving towards having a single proposition. And we are close to getting there, a proposal which will be supported by us and all the authorities and class associations that represent retail and e commerce. From the very beginning of the market based operation, we have developed a series of controls to assure a good quality service to clients, especially in terms of technology and verification processes, not only for products, but for invoices and so on. Today, we have 100% of control end to end. We require invoices on 100% of sellers through APIs. We can check if that's being done. We have also put together a compliance committee for marketplace with the objective of ensuring the legitimacy of our sellers and all the items we just sold through our platform. So we are totally in agreement with that, and we do believe it's going to be an important step for the maturation of e commerce in Brazil. We need to see those measures in place in Brazil to have a marketplace where everybody is working on the same playing field legally, and that's it. So the single proposition that you just mentioned, do you believe that this is going to be implemented next month? Or is it already being negotiated? Can you please address the content of those negotiations? Gustavo, it's not our proposition or proposal. I cannot give so because of that. I cannot give you a time line. But the main focus is that we have reached a common sense involving class associations and the government. So again, it is only normal to have discussions around that. It's a new process. So there are conflicts of interest, different opinions, but we have reached a common understanding. So from now on, going forward, we understand that, that proposition of proposal will play out in a very positive way. Our next question comes from Robert Ford, Bank of America Merrill Lynch. So what's your take on food market considering the acquisition of the NOW Supermarkets? And also, what kind of model are you considering for these new categories? Robert, thank you for your question, and thank you for participating. And also thank you for your good words on our results. We are also very happy with the numbers we have presented. It was quite transformational, as I said, for the whole company. We are all very motivated to start this new cycle 2020 through 2022. With those results, we have moved to a different level, no doubt. As to your question specifically about the now supermarket chain, it's very much in line with our strategy, which is a strategy where we aim to offer a complete assortment to customers. Our topic as our team, as you know, is everything, anytime, anywhere, we see a very low level of participation of e commerce and supermarkets. There are other categories which might be similar with that profile. In other words, categories which have low penetration and high potential, they're all targets for us. We have been working hard to increase our presence in those long tail categories. Marketplace has been instrumental in that. And helped us add assortment to the platform. So when I look and in my presentation, I mentioned that when I look at the numbers, within 3 years, we have increased tenfold our assortment items, over 10,000,000 SKUs. And we want to reach over 100,000,000 in the next 3 years. So the supermarket category is part of all the context. And it has this feature, which is high frequency of purchase. For e commerce in Brazil, it's like about 2x a year. When you look now supermarket, it's 10 times as frequent as that. So one of the reasons, one of the drivers that led us to make the decision of buying, of acquiring that operation, the NOW Supermarkets. So we are starting this operation with know how, speed, experience. We are very happy with the team. We are now onboarding the supermarket to our americanos.com platform. We are conducting some usability tests right now to be able to define a rollout timeline. So we expect now to follow a very organic growth path using all our platform. The platform the V2500 platform will allow them to grow very fast. And the potential there is because we have this logistics asset, the now scrubber market, they had a crowd shipping platform. We have our own crowd shipping platform, the Omni Flash. We have made 2 acquisitions, Pedara and Courier, to speed up AMI Flash. And on top of that, we have LETS, which has national penetration and with the necessary know how in delivering different types of products. In other words, logistics integration is key for us to be able to operate in those categories. We are quite happy with the acquisitions. So and it's part of our broader objective of reaching the number of 100,000,000 ASKUs by 2022. Well, thank you and congratulations once again. Our next question comes from Guaras from Goldman Sachs. Well, good afternoon, everyone. Thank you very much. So the cash flow has changed. We can say that you have achieved the target you had set. But I'd like to ask you to please clarify or elaborate on how do you see this revolution moving forward? There are many opportunities out there in the market when we think about e commerce in Brazil. But at the same time, we see some tensions also in the environment. So considering the strong results you have shared, So I'd like to ask you to elaborate on what is your take for cash flow in 2020 and also for your CapEx, not only for 2020 and also for 2021? Thank you very much. Hi, Emmanuel. Good afternoon. Thank you for your questions and comments. As to your first point, cash, we did have quite a significant evolution in the company's financial model, which combined with our digital platform, it's also very optimistic as we look forward to the next 3 years. For that cycle 2020, 2022, our 2 main priorities will be to speed up growth as we continue to generate cash. Those are the company's 2 main focus. To reach that, we have, of course, several initiatives in place. And throughout time, we'll give you more detail as we move forward. But once again, I have defined priorities, which is to speed up growth and to continue generating cash as for the CapEx for the period. Of course, we need to continue to invest in the platform, especially in the O2O initiatives. And in the army front, when we look at the CapEx relative to the investments in building that platform, it tends to grow nominally. But as a percentage of GMV, it will tend to become lower CapEx throughout those 2 years, well, it will start the cycle this year at a more robust position because we need to make investments. And throughout the cycle, CapEx is likely to fall both nominally and also as a percentage of GMV. So that's how we see CapEx going forward. Thank you. Well, with that, we'll close the Q and A session. Now I'd like to turn it over to Mr. Roni for his final consideration, final comments. I'd like to thank you all for participating in our call. If you have any questions or comments, our IR team remains available to address those. Thank you, everyone. Have a nice day. With that, we close the B2W webcast. We'd like to thank you all for your participation. Have a great afternoon. Thank you for using Chorus Call. Thank you.