Earnings Call: Q1 2021

May 13, 2021

Good afternoon, and I hope you are all doing well. We are via, we're digital. We are a powerful ecosystem that's open to innovation. We're a marketplace, and we have customers at the center of our business. Just recently, we had the transition from the transactional retail model to a relationship based platform model, where we focus on the customer base increase, the lifetime value of the customer and the ongoing improvement of the customer's experience. The initial results of this transformation are already apparent, and we're going to present these with you today. The slides for this presentation are available for download on the IR Investment site. This presentation is being broadcasted by our YouTube channel, and it has simultaneous translation into English. We will have a quick presentation on the earnings and results and then after, of course, we'll open up for Q and A. Now I would like to invite Roberto, our CEO, to begin the presentation of Via's results for the Q1 of 2021. Roberto, it's all yours. Thank you, Danny. Thank you, everyone, for joining us during this earnings call. I hope you're all doing well and happy and healthy. We're happy to bring another quarter of In the Q1, if you could maybe just highlight the Q1. Our GMV had a total peak of 27% going to BRL10.3 billion. Our online sales were very much accelerated compared to the Q4 even. Our 1P is growing 123 percent to BRL4 1,000,000,000 and 3P moves on to 124%. Moving on to BRL1 1,000,000,000. R3P already represents 10% of our total GMV. In the Q1 of 2020, this number was something around 5%. Our digital sales represent 55 6% of our GMV versus 33% that we had back in 2020 in the comparable period. An important lever of our digital performance is the online seller. He is responsible for R1.2 billion dollars representing 21% of the GMP. The online sales person has a system, the vendor. Online has the same GMV. Danny, I think we missed your presentation for a second. So I'm going to continue here. And Our online sales rep has the same performance as the 4th quarter. So exactly BRL1.2 billion. And in the Q4, we have Christmas and Black Friday. So that represents significant evolution in this channel that is So important to us. The good news is that we are still keeping up with a strong growth pace in April and also in May now with accelerated growth. And the next slide, If you could maybe switch slides now. Great. So we have our online performance, as you can see on this graph with the graph below is from the sources Compi and Compia. So the survey in the 6th quarter, consecutively, we grew above market Our growth is completely in line with the strategy we have designed and the deployment we are working on. So it's important to highlight here that it's a 6th quarter with this kind of performance. So we just had a little technical issue here with a problem with the slides. So please, if you could maybe solve this, of course. Seems we had a little technical issue with our slide. And we'll just see if we have news from the team at KORUS and if we can solve this problem. Sorry, again, we had a little problem here, but now it seems like it's working. So let's move on. As I had mentioned before, I think we'll go back here. We had an initial quarter with A 27% peak, we evolved to RMB10.3 billion of GMV. Our online sales really accelerated in regards to the Q4 and our 1P has grown 123% to BRL4 1,000,000,000. R3P is growing 124 percent to BRL1 1,000,000,000, And it already represents 10% of our GMV. It's important to mention as well that in the same comparable period, it was representing 5% of our GMV. So our digital sales already represent 56% of our total GMV versus 33% in the comparable period. An important leverage in our digital performance is the online seller that made RMB1.2 billion, representing 21 percent of our GMV. It's to highlight also that our online sales program also performed the same GMV of the Q4 of last year, the quarter where we have Christmas and Black Friday. Good news is that we continue to be very strong at this growth rhythm. April was strong and May also with significant growth. Next slide, please. As you can notice here on this graph, For the Q6 consecutively, we grew above market levels. This graph has It's based on information from Compli Compi. It's public data. And it's important to highlight the consistency of the growth that Via is undergoing. And what's most important is that from the Q3 of last year, there is already significant competition. So I think the concern a lot of investors had in the market about competition that would take in the online market in Brazil and the potential winners of this competition. We've been in this competition ever since the Q3 of last year. And you can notice that up ahead here that beyond growth above market levels, we continue to be a profitable company. So we are more than prepared to really face this intense competition that's already present ever since the Q3 last year. Just take a look at what's going on with the margins among other players in Brazil. Important data here is that this growth above market level that we've been working on gave us share gains. We gained over 8 percentage points in share compared to the period where we took over the company in the Q3 of 2019. So one thing that's really important to look at is the strong and pace growth above market levels that leads to an important achievement in the market share. We had a lot of questions coming in ever since we performed the Investor Day event where we had a lot of questions about our ambitions and prospects for the future of having 20% market share by 2025. We had a lot of people asking us how. Well, the 9 point gain in less than 2 years demonstrates that we have what it takes to deliver our consistent deliveries and our strategy to reach this level. So we're really confident that we have an important pathway up ahead, But it's already pretty much set based on everything we're able to deliver up until now. So in 2 years, we already gained 9 points of share. And 5 years if we will be making the rest of the share that's missing, which is not an impossible challenge. So we think it's possible to overcome this challenge. Moving on to the next slide here. You can see some of our main pillars that we consider to be fundamental for us to reach this ambition. We have a strong omnichannel approach with Financial Solutions and Omnichannel Logistics and Innovation and Customers really at the center of our strategy. So I'm going to try to go over each of these pillars a bit as we talk about the results and what's up ahead, so that we can provide more tangibility on where we're headed. Next, please, Sunny? Well, I'm going to start talking about the marketplace. We are aware that one of the most important components to be able to increase LTV or GMV is recurring. And in order to do this, we are focused on making this year the year of the marketplace. We're going to be offering more assortment, greater categories and generate more frequent consumption. No doubt, To do this, we must have a strong marketplace. In our strategy here for this year, with already 26,000 sellers and we're on track with the 70,000 to 90,000 sellers for this year. So the new sellers entering is in line with our ambition of having 70000, 90000 sellers this year. When we think about the SKUs, we've already taken on an important leap. We have EUR 24,000,000 already. Our GMV per marketplace is already about $1,000,000,000 and we still do not consider the strong growth that we had in sellers and GMV. And this was mostly due to what happened in March and it's not considered in our GMV load. No doubt, It's not only about adding sellers. It's not about the more sellers you add, the better it is. It's about really making the sellers generate GMV on our platform. So we are convinced that we're continuing to add sellers and more categories. And we have a very well designed plan to make these sellers interact with us more and also with our consumer platform, generating a significant increase in GMV. On the next slide, Just to talk about how we're going to be doing this. We in this year, we have important evolution taking place in our marketplace platform. So we have a lot of improvements coming up for the sellers so that we can make their lives easier as they create and manage ads, messages, recommendations and a lot of improvement in the platform and I'm going to talk about some of these. We're going to have the Via Ads. So that's where we're going to have a, advertising solution for all my channels. This is going to be terminating our sales even more. So it's going to be in the hands of our seller to hire all of the ads through our platforms. We will also be setting up a prize club or an award club. So we already have this in 1P. The industry can buy this coin that we call VIVAS, internal currency or coin. And then you can manage incentive funds with over 20,000 sales professionals to really promote the sale of these items. And then we're going to be extending this throughout this year also to the sellers. So sellers are going to be able to hire special campaigns directly with our 20 1,000 sales professionals and really accelerate this so that they can sell these items. And this is going to be done through this process of And in just a bit, the sellers themselves will be able to create their own campaigns. Another item that's really important is our Advantage Club, where it's basically like a loyalty program. So the more GMV and the more services the sellers have with us, the more advantages they'll have in the Via ecosystem. The Credit also is going to be something new also that's really important for us. So besides the anticipation of receivables, We're also going to be launching some credit offers to sellers and also, our payment book that's going to be available. So besides this, you have a lot of other initiatives that are listed. Everything that's listed here is for this year. So Besides this, you have full commerce. So we are going to be working on this, this year still. And we're going to be delivering the full solution to sellers that need this kind of solution. And then we also have that marketplace out. These are two points that are not included here, But we are very much convinced that we'll be able to deliver throughout this year. So well, everything we've proposed to deliver and do Up until now, we delivered and we demonstrated this. The numbers are showing you this. And so now our main concern is really to deliver this very bold plan in the marketplace. We are going to work on this. We are going to deliver it and we want to be the relevant player by the end of this year. And then on the next slide here, Danny. When it comes to financial solutions, another very important pillar is for this Via ecosystem, right? So, You have a lot of new features. But before this, I want to talk about how you organize these services and financial solutions at this moment right now. So I wanted we needed to provide more information on this and now we are providing this information. By the end of the presentation, you'll understand how powerful this service really is with our payment booklet system to really ensure recurrence. So I want to highlight the winning strategy we started in the payment book and how much we've collected in results in just 1 year. So we really started working on this strongly. And on the left side, you can observe our pre approved customer base. And it already went over BRL 14,000,000. So this came together with the significant growth of estimated limits. And there is a limit of BRL 42.5 billion to be able to perform purchases with us with installments. And we would be able to deliver a limit that's a little higher in the capacity to payment. And this increase is greater conversion and recurrence. And in about a year, we started customizing all of the different actions we work on with the payment booklet and this brought in a conversion rate that was very accelerated and also recurrence that was a lot greater than what we already had. And all of this evolution really brought in a more youthful target audience. If you can see the average age range, you can see that we've also reached customers that have a greater income potential. And so these are customers We also have customers that are entering higher income levels. So sometimes they even have a credit card and they're exchanging this option. So, they're going to do this through our payment booklets and occupy the limits. And besides all of this, our essence is still preserved. 46% of the base are customers that don't have income statements or record. So providing credit to these 46% that are autonomous individuals that have no income proof is very complex and we know how to do this. So our numbers demonstrate this. If we could move on to the next slide, please. So this brought in a lot of relevant growth in the share of this payment method in our GMV. We went from 17% share in May 2020 to 33% share in our physical stores. So the payment booklet gained basically double its relevance in the last year. But maybe the most important news here is the recurrence of this payment method providing to this ecosystem. And here on the right side of the graph, you can see that in just 24 months, basically half of the customers went back to performing purchases of our finance So if we consider our average term of payment book of being 14 months, we could state that the customers, When they stop paying, you already start another one. And sometimes when they're lacking one installment, they already start paying another one. So there's a lot of current, and they're basically protected in our ecosystem. It's their credit method to be able to access consumption. And they are recurrent and taking advantage of this credit possibility that we provide them as well as the relationship they build throughout so many years with our brands. On the next slide, please. I want to show you some great news here. If that payment booklet we just saw in the physical store really has that power, imagine it now in digital. So Our solution for the payment booklet is already open ocean, right? We already have 25,000,000 that we already know about in-depth, and they are ready and prepared to perform these credit purchases digitally. So engagement has also grown quarter by quarter. And another very important differential is that with digital, We really rupture once again our physical borders. We've already granted credit to over 500 municipalities where we have no physical presence. We've never had a store in these municipalities. So let me give you some examples here. We provided credit 2 customers in Fortuna in Piawi. We never had a store there in Cartel and Serra, in Miyo Pocky and Mato Grosso do Sul, and Baba, Sulanga and Tocanchin. We granted credit in these cities where we've never had any physical presence. And once again, you can see digital really rupturing and overcoming borders and boundaries, adding on more customers to our ecosystem. Some other good news is that all of this evolution is in line with a very precise customer journey. It's simple and frictionless. 44% of our customers say that this is the only access method for credit. So you can see the level of importance in this tool. And now with digital, there's no borders. Next, Bodani, please. Well, all of this, as I've just mentioned, is really important when they asked us how we would get there with our ambitions during the Investors Day. It's important to mention how we Got where we're at now. This didn't come as a miracle. It came through evolution of our financial service platform. Sales a lot. So it's not like stop, implement and then sell more. It's really the simultaneous real time execution as well as with a strong alignment with our long term strategy. So this is very much in line with our strategic vision and this quick execution of the team. The team at Via is really capable of growing and transforming things simultaneously and quickly and we're not stopping here. We have a strong delivery agenda in the next quarter With a special highlight to the payment booklet on our marketplace, our credit platform for credit as a service. And here you can see our payment booklet, adding up other players to our ecosystem. So This is our ecosystem being expanded through the payment booklet. And you can see a lot of deliveries this Great. So you are used to hearing me talk about the payment booklets and bank keys, but our platform Financial Solutions also considers co branded cards. So we have over 2,500,000 customers active that generated in the past in the Q1 about BRL4.1 billion in TPV. So all of the co branded cards generated BRL4.1 TPV. And so our base also grew. We added about over 200,000 consumers using our cards. We're growing our customer base at our payment booklet also here in our customer base. Next please. Well, just as a payment booklet, just a minute. Benqi is also growing at a very accelerated process. So all of the indicators are very positive. Up until May, we reached about 4,000,000 downloads. So just to remind you that in November, we had disclosed that we had about 2,000,000 downloads. In regards to account openings, we reached 2,200,000 customers with accounts open And also here in May and then in November also, we were considering €1,000,000 accounts. So In just 5 months, basically, we were able to add up 1,200,000 new customers with Bank account. So when it comes to TPV, we've already overcome those BRL500 1,000,000. And we've already started a request for a license together with PACE, the Central Bank, one of the limitations was having SEPP above 500,000,000. And we've already reached this with and we started this request. The total transactions reached BRL900 1,000,000. And in this indicator, you also consider the deposits accounts, which is greater than TPV. So we are in a very precise journey with Benqi. All of the numbers are positive and we have also been following an important journey for acceleration and transformation of Benqi. So now the next journey for evolution of our digital account is accelerated, and we have a very good defined strategy. And we're focused on delivering these items. We'd like to highlight the expansion of BenQ Shop. So this is our marketplace here with the super app, Benqi. We will intensify the what it offers and we'll have a very robust marketplace in the super app. And then, of course, the credit card that will also be coming around this year And we'll also have an account and credit for legal entities. So, for all of the small businesses and entities, but also those that will be in our marketplace as sellers. So it's an additional service that we're going to offer them and also to all of the over 300,000 delivery guys that will also that our crowd shipping has, which is as a plug. Now, we also have a process to approve an operation at CAGI with our FinTech seller to add payment methods and acquire solutions. So we're going to have another vertical to really fill in our platform and ecosystem for financial solutions. Next please, Donnie. Well, as we move on to logistics, Just as the other pillars are very important, logistics is also essential. So considering this robust platform that you can see at the base of this image Here, we can really see that we are leveraged when it comes to the service level and speed of delivery, transforming this robust logistical structure we already had. As you can notice on the top, Our delivery in 24 hours was 7% when we arrived, and it's already reached 42%. And the same day deliveries are already at 15%. If we consider the logistics differential of heavy items that we have, Well, one thing is to have light items in the big centers. Another thing is to perform logistics for light items in all over Brazil and all of the municipalities. Just to give you an idea, this year, we just didn't deliver in about 15 municipalities. All the rest we delivered. So just as we have our payment booklet penetrating in different municipalities, here with logistics that's the same thing. When it comes to light items, we have coverage Nationally and when it comes to heavy items, we also have national coverage with precision index of about 98%. So here, since our logistics are going to be more at the service of the marketplace, then maybe we'll have new categories in the marketplace that have never been seen in any other ecosystems because no one can do what we do with these heavy items in the marketplace. So We may have possibilities for new categories that can leverage this even more through the logistics. On the next one here, Denny. Just as we have demonstrated in the other pillars, this also didn't come from as a miracle. There is a big transformation, a lot of accelerating in our technological platform. And the good news is that we have so many other deliveries and things we're going to be offering in 2021 still. So what is already pretty much accelerated is going to be accelerated even more. So we have this Open Ocean fulfillment. And by the beginning of Q4 this year, We will also be performing the fulfillment in any marketplace. So we want to be the logistical solution as well wherever they perform the sale. And along with this, there's so many other initiatives in our logistics. Next one, please. Well, when it comes to innovation in new business, This is really at the center of our ecosystem at Via. So we have 2 agendas here. 1 is the short term agenda and the other one is long term. So This goes through our huge tech team that was considered the ViaHub, which is the team that's really transforming everything that we've seen here and was demonstrated so far and has been doing this at really accelerated rhythm. And so the team is able to do more and quicker. When it comes to M and A also there are other strategies as well. So just as we worked on with the zaplog where we anticipated 12 or 15 months of ours with Benqi and seller network we're going to be working on now, we really understand that there are other possibilities. We are looking at this in an ongoing manner with M and As that can really accelerate this process very quickly as well as our long term innovation. So our open innovation here is looking at the long term. One of the pathways here is through this TBC that we launched on our Investor Day. And then here, we're really focused on Fintechs, Retail Techs, LogText and MadTech. So marketing logistics and retail as it is And then different possibilities as well for evolution in different fintechs that we can add on here through Benqi. On the next slide, we highlighted the beginning of a new strategic cycle for growth, where the entire Via ecosystem is operating with a single vision, really customer focused and customer centric vision. We implemented this transition model, moving on to this relation based platform that focuses on the increase of the customer base and LTV and continuous improvement of the experience for our customer. So this transition models is already done. Now we've reached a point where we have our ecosystem at a mature level, so we can perform this transition. And Now our main focus is really in the lifetime value of the customer and the customer experience here in our ecosystem. I'll give a little more tangibility with numbers on how some of these examples of initiatives that are already reaching effect and are increasing the LTV. So, we have the significant evolution of our monthly active users in our apps went from 8000000 to 16000000 users if we compare quarter by quarter, which generated an important increase in share from our apps in the total GMV. So pure app already represent 48% of the total GMV, which is really important because this helps us a lot with our customer relationship. It helps this relationship be even more accessible and less And if we were to look at the total for mobile, then we also have another relevant share in the M site that really takes us to the mobile first that's already been consolidated here at VIA. And more and more, we are going to continue to penetration from the mobile and the peer app and the relationship with customers. So, next slide here, Danny. Channels with a special highlight towards the multichannel customer that really highlights our omnichannel strategy. So from last year, we saw relevant increase. And the peer off customers grew 23 and €1,000,000,000 So we're very convinced that we are on the right path And these numbers are better and better. And then when we think about the average revenue per user, the evolution was also significant and it translates that our growth is sustainable. So we are not going to search for growth just to grow. We want to increase the loan level, but together with the April growth. So we're at a sustainable journey and we understand there's really no point in just growing for no reason because there is an abandonment rate. So we're increasing the MAU rate with the ARPU rate. And another important highlight here is that greater penetration of the digital is also bringing an important increase among young customers. So we have more youthful customers. We saw this happen with the payment booklet system, the Kedgejadu, and we're also noticing how this is happening with our full customer role, regardless of if they're in the payment booklet system or not. Next slide. Now another very important example here about how we are searching for greater customer loyalty is through the CB Play. So CB Play is very successful. It is a very precise experience. And in just 30 days, it increased 50% of the amount of download So it's super powerful. And here, there's a lot of news coming. So we can't tell you about this Yes, but this is a real pathway for relationship and loyalty that we will continue to follow and there's no stopping us now with our growth. So another important piece of information here is that on the social network, we're also at another level. In the graph, you can notice the evolution of engagement in the timeline where we overcome other players in the market, positioning our brands as the brands with the greatest sector engagement. On the right side, you can see a little photograph of the month of April. On the left side, you have the history ever since 2020. And then on the right side, you see just the month of April from the main social networks in Brazil. And then you can Our brand is really leading among those three places. Now we have the first and second place in Facebook, And on Twitter, we're on the 1st and second place as well. So an important message here is that there's no point with just having huge amount of followers. What's most important is really the engagement that makes this ecosystem really move along. So we need to generate greater engagement. And if we were to look at the next slide now, Danny, please, you can see our scores here that are already close to the maximum number, which is 5. So we see relevant improvements in the ratings and scores on our apps that demonstrate that our users are happy with the customer experience. Since we have clients at the center, we are focused on a constant improvement of the experience. And in the Q2, we're going to be implementing 500 better improvements. And so just in this quarter, a lot of them are already valid. And then During the entire second semester, we'll have 500 new improvements that really improve usability and certainly will help a lot with our conversion rates as we also improve our final result. So even though our notes are close to the limit, which are 5, we are at an accelerated process to improve our apps as well. And then on the next slide here, we are completely committed to the ongoing and continuous improvement of this customer experience. So the advancement of our NPS that went from 62 to 74 And also in the physical stores, that went from 65 to 75. And here in Hikaimaki, we have significantly advanced. And we are in this pathway and our journey is really explaining that in just a bit, we'll have this as well. And what's not least important, when we look at Procon, this is also valid when we think about customer focus. So resolution rates at Procon, we already have the best rates in the market. If we consider the accumulated amount in the year, we already have this best rating. And if we look at the other 60 days, we also have a 2 point gain, which demonstrates that we are moving along. Even though we already at very good levels. We are still improving our operations with customers at the center of our ecosystem. So this demonstrates how we are extremely focused on being the relationship and consumer platform for Brazilians. And this is where we are headed. Now, Padilla will take over the presentation, and then I'll get back into Q and A. Thank you so much for now. Thank you, Roberto. Can everyone hear me? Yes. So Let's start off with the highlights, the financial highlights and results. This first slide here is the P and L. And here you can see those BRL10.3 billion are transformed into BRL8.8 billion in gross Revenue with a growth of 18 percent, BRL1.4 billion more than the Q1 last year. And net revenue of BRL7.5 billion, growth of $1,200,000,000 19.1 percent better than last year. I'm going to talk about this a lot in the next slides about the gross margins. We had excellent news here. Via is a real important strength of our business with our profitability and the possibility generate gross margins. So the EBITDA is also very robust, dollars584,000,000, 7.7 Just last year, we had 9.8 and then we had some important non recurring effect last year and this 9.8 that are more comparable with the 8.10%. So this small reduction is very much connected to the factor of some stores being closed physical stores being closed in March due to the 2nd wave of COVID. So that's why we reached a net income of BRL180 1,000,000, considering BRL13 1,000,000 last year, over 13 times greater in this quarter. Also a very important factor was that the company recognized a tax incentive that was directly impacting the income tax and social contributions and then we performed this reconciliation of all the benefits that were recognized of about 115,000,000, 117,000,000 referred to previous period before the Q1 of 2021. So the net income comparable to last year are $63,000,000 about 5 times better than last year. Moving on here to the gross income. We in the gross profit, we can have improvement of 1.1% in gains in commercial margins, 110 bps. And this is due to a positive effect of default, the elimination of payments of ICMS and state sales from e commerce. So this really leverages our e commerce in a very competitive way and makes So it's therefore a lot more competitive. I'd say that one point of this total amount is recurrent from the moment when we reopened the stores in the Q2. And then certainly, this leverages and brings even more competitiveness to our E commerce. So, we had 2 important negative impacts on the gross profit, which is basically due to generation of revenue last year in payment booklets and cards and services. This is basically related to the physical stores being closed during basically all of the month of March and Significant gains from 10% in the logistics, leveraged by the online GMP. So We went from $30,700,000 to $31,400,000 This is a number that's very robust, even though There were significant changes in the profile of the sales mix from physical stores to online. So, on the next slide, we are going to demonstrate the bridge of the expenses With sales and administrative expenses, we left from €21,900,000 to €24,500,000 an increase of 2.6 In expenses, this is explained by the following: the comparable base with the Q1 of 2020 needs to be adjusted due to an exceptional effect that took place in the Q1 with the important recovery of some legal expenses. So the comparable basis is 23.6 compared to 24.5%. And then we have a 1.2% growth in the expenses due to the non dilution of expenses due to the stores being closed. This is a second effect. It is, of course, recoverable from the moment that the stores reopen. So then for the 2 next effects with the dilution of the effects with the entire online sales process and the reduction of administrative expenses are here to stay and they are related to this increase in volume of GMV and gross sales, gross revenue for the company. So the 3rd important event for 2020 of 2020 is basically related Benqi. Last year, we didn't have Benqi in our structure for results. And it is still in an initial phase. So we have more expenses in revenue. We have BRL0.20 impact, approximately BRL15 1,000,000. And within the quarter, what is very much recurring in the quarter, we have another increase of 10% in labor claims. We're working on the elimination of this expense, which explains this kind of expense. So if you think of this from a recurring perspective, our level would be leaving those 23.6 to 23.10. This is the recurring level because of the Q1, which demonstrates an important benefit and positive gain of 0.50. On the next slide, we bring in the explanation about the evolution comparing 2021 in the Q1 of the total profit of the P and L considering net profit and income, and I've already explained the effects in the gross income and SG and A. And then of course, we mentioned the first gain in depreciation that was leveraged by the increase in revenue, generating more productivity for our fixed assets. And then the second gain that was very important with financial expenses was also leveraged by the better cash position of the company after the follow on. So we stopped spending money with discounts on receivables from credit cards and this already brings in an important effect of almost BRL100 1,000,000 per quarter. There's also an interesting effect here that we call the R and O, the nonoperational results. This is not a gain. Actually, last year, there was for solutions and last year we started this process of cleaning out these different matters from our legacy. But certainly in this quarter, compared to the previous quarter, there was a reduction of BRL60 1,000,000 actually only BRL10 1,000,000 in this quarter And our commitment is to adjust this to eliminate this expense compared to the previous quarter. And you have a 80% improvement. So that's why we reached the comparable profit of 62,000,000, 80 against 20, an improvement of 5 times And also BRL177 1,000,000 from the subventions of previous periods with the which represents an improvement of about 13.8 times compared to the same comparable quarter in last year. So cash position and cash flow. As you can notice here in the highlight, we have the cash generation highlight and consumption where you can It's very normal to see this kind of consumption in the Q1. It's really seasonal. But despite all of the GMV sales gains, the cash consumption was below last year. And it would way lower if it wasn't due to a company strategy to work on this Inventories that are higher during the entire pandemic period where they have greater scarce safer product. This is good cash utilization because supply chain is resuming operations to normal levels and the company has the conditions to recover this in a very quick manner. So we have a very robust position and non discounted cards. And we have a very good application for our anticipate these payments to suppliers, recomposing this cash with this fund, BRL 651,000,000,000 and this is what we consider the portal of the BRL7.2 billion cash position that is extremely robust and comfortable, which Moving on to the next slide. Just heading on, this is the last slide, then we'll move on to Q and A. So the company was also very successful here with this Month, actually last week. So the liquidation on this Monday of our first debenture connected to sustainability indicators And connected to this, we were just able to have a rating from S and P with AA position that is extremely important for the company that really strengthens our debt profile as low risk debt profile. This debenture was placed basically to the market 90 6% in 23 investment funds basically reopened the market for Brazilian debt as we did in the past and our follow on where we also reopened the market. And basically 96%, so 4% still from bank portfolios that should be also be entering the secondary market. And our is that then we'll have 100% market based structure. So we had 2 thresholds, 1 for 3 years and 1 for 5 years, 77% in the 3 year one and 23% in the longest one. And when it comes to cost, The company sets a new level of cost of debt, cost of debt, and we had the first debenture that was at the with a cost of CDI plus 4.05. Our average cost before the dementia was CDI plus And so if we were to consider this cost of CDI plus 1.95 And the weighted value of the debenture, we're talking about a reduction of 1.55 to 2.10 percentage points in our debt cost, which really highlights the solidity and safety and trust of our investors when comes to that level. That's all we had to share with you. Thank you so much. I would like to thank you so much for your time and investors participating and analysts participating in our call. And then let's move on to Dani, so we can start Q and A. Alberto and Patilio. Here we have our first question from Joseph Giordano. He had his birthday this year. So Joe, you can ask your question, please. Okay. Thank you. Good afternoon, Patilio, Bartenzani. My question well, basically, I have 2 questions. The first one is a little bit related to the e commerce strategy and the onboarding of sellers. How do you look at the competitive advantage or competitiveness in the market? So we've seen some players investing in subsidies And then I'll get into my second question, which is related to tax issues. So temporary credit recognition till when this benefit will be valid? I think it's 5 years from the first CDI operation. And then the second question is about Default in e commerce. So you guys mentioned an explanatory observation about judicial deposits about BRL105 1,000,000 in the legal account. So is this attributed due to default? And if in this case, We would consider this as a reinvestment still. Thank you and congratulations on that And I'll start off here and then Padilla will complement. So in regards to our evolution In the marketplace, we are on track and we committed to dollars $790,000 to the end of the year. We're in line with this plan. Onboard is still positive. And we're already starting off to see some signs of this accelerated onboard and transformation with the increase of GMV. And so we are very much in line with our plan. So in regards to competition, I think it's really important to consider and the market needs to understand this because whenever this kind of competition grows, the market thinks this going to make our life more difficult, but it's important to say, look, it's already a bloodbath ever since the Q3 of last year. We've seen this reflected in the results in all of the companies that operate in the marketplace structure in Brazil. So this bloodbath is not starting now. It already maybe it's growing a bit for some players, right? But our reaction in regards to everything that's going on is what you've seen here. We kept on gaining market share in a consistent and strong manner, we didn't lose margins because of this. So the ecosystem that Via has ever since they arrived, been saying, look, this company has an ecosystem that no one else has in the market. And more and more, this is being consolidated. More and more, this becoming evident because it's not natural to have this bloodbath that's going on in the market and still continue to gain market share and grow a lot more Then our competitors. So this is only happening because we have this powerful ecosystem. The pillars we have in house, no one else has. So we are convinced, if we look at what's going on in April May, we continue to grow above market levels. We are seeing share gains daily with all of these indicators. I continue with a growth rhythm and pace is very accelerated. If everyone's kind of ripping money, then I'm being able to get it right and I'm still winning share and I'm still making money, then I think that should be a positive point for us, right? So we are really focused on that and we want to as much as possible more and more gain more share and preserve profitability. That's our goal. The good news for us is that if at any moment we need to be more aggressive, then we have the necessary conditions to do so because our margins are preserved entirely. So the 2nd quarter is a little more challenging. We had closed in April, so we have a little more challenge in regards to profitability, but nothing that we haven't undergone in the past and we know how to handle this. The tools we have, and we really respect competition. And we think that competition is good. It makes everyone evolve quicker. However, we are not afraid of competition and what's going on in the market. We have been aware, We're consistent and we're confident about the ecosystem we have here and the differentials we have to also win the game in the marketplace scenario. Padilla, I want to pass it on to you maybe to talk about the tax issue. Great. Thank you, Alberto. So two questions that are really important. Let's start off with default. So this is directed to the collection of taxes by the state Without the existence of a complementary or previous law, so there was a decision. Just to remind you, those states would collect taxes also when entering those states when there was an interstate sale online and The company adopted a strategy that was proven to be a winning strategy. The decision took place on February 14th in the Supreme Court at the plenary. And then that vote was clear that whoever had judicial deposits and in lawsuits that had already begun already had the right to recognize the asset and revenue and also has priority to see those resources since they did not appear in the cash in the accounts of the state. So they're in judicial deposits and the lawsuit and decision is very quick in this case, and then you can actually access those resources quicker. It's available in a judicial deposit account, so it's a quicker process. So this increase was really due to default. Of course, We recognize the revenue and this of course accelerates our it makes us more competitive, I think generally speaking, with 3 types of beneficiaries with this kind of decision. So whoever has a lawsuit, whoever has judicial deposits and whoever does not have. Whoever does not have needs to wait for the law, who has these lawsuits open already, need to request the money back from the states. And in our case, we are going to have this quicker because it's in a judicial account and not in the states accounts. So part of this commercial strategy really is important from a legal framework. And we have 15 states sorry, 22 states involved. And our forecast is that the resources will return to the company in the 2nd semester this year already. So This is the default issue, all right? Now in regards to subvention, it's a little different. It happens because the company has fiscal incentives, tax incentives in over 22 states sorry, defaults in 15 states and subventions is present, fiscal incentives of all types within the state. So these are CMS tax credits, reduction in the calculation based. And this represents a percentage in 2020 of about 3% of the revenue for Via goods. And now in the Q1 about 2% of our revenue in goods. So the incentivized part is very low in the total revenue, but it is important because it generates significant values. In the quarter, we had BRL 150 BRL1,000,000 recognized, a certain amount from previous periods and BRL32,000,000 from the actual year. And this already generates the recovery of taxes in the next quarters already. So I have a big a bag or wallet of fiscal credits from all types, income taxes and social contributions. And then this is going to be setting up the amount of reductions in payments that we're going to have throughout the year. So if you would allow me, Joseph, to mention that this is a very important topic for me and all of you as investors to understand we consolidated some charts within our ITR and in the release as well that demonstrate that We have BRL5.5 billion in credit fiscal credits related to sales and BRL1.9 billion fiscal credits related to profits. So we have $7,400,000,000 in tax credits. We also have on Slide 3922 of our ITR, the monetization curve and expectations for monetization in these resources. So I think this is really important if we needed this capital. In 2021, We're expecting BRL 1,200,000,000 monetized. And in to $1,700,000,000 $1,800,000,000 $1,800,000,000 $1,250,000,000 about $500,000,000 each. So we're expecting that for the next 5 years, dollars 6,400,000,000 86 percent of that base going back to the company's cash. Our next question comes from Jerome from Citibank. Good afternoon, Patilio and Roberto. There's 2 points here I wanted to cover with you guys. I think the first one, you guys mentioned a lot about recurrence in regards to The bank and fintechs, the payment booklet, I think it's a normal trend that people would start performing greater purchases of the pay for the installments. But I want to hear about out of this context, What are the efforts to increase recurrence maybe when you think about the assortment? And then, asking a bit about the conversation in the Investor Day both the different categories of potential M and As that you may work on to really accelerate the user recurrence. And I understand that food retail was not considered your priority. But once again, the different categories and increasing the assortment to accelerate recurrence. And the second point, As we consider the inventory, I think it was very clear, Fajardo, what you mentioned, there should be a recovery based on the supply chain as supply chain is normalized right at the inventory level. But can you already have some visibility about this recovery and if maybe in the second quarter there would already be a reduction in the stock levels? And then if we take advantage of this point, what's the mindset on the cash generation for this year? Excellent, Jean. Thank you for that question. Good afternoon. So now in regards to recurrent, I believe that the good news is in our ecosystem is that It does not depend only on products. So we've demonstrated that the payment booklet is also a strong motor lever for recurrence. So customers that really plan to have 14 months of funding with us will have 14 months of contact with us. And 50% of these customers, I convert the new sales for them. So within this period where they are When we look at the other side, all of the initiatives we're working on like CB Play, for example, is an item that generates engagement for us and returns, because customers are more present with us as We include them and supply entertainment for free, for example. We also have announced in the Investor Day that there is an important relationship plan with customers throughout this semester. That's going to be a very powerful tool to intensify this relationship even more that generates a lot of recurrence with customers. So no doubt, We know that to search for this, we need to have a marketplace that is really structured and has a good assortment. And this is what we're building this year. So we've already set up those 10,000 sellers. And We will mention these items that are strong recurrence items. This is what the whole market has. And this is what we're going to have here as well. So we're not contrary to food items. What we're saying is, look, If there's a priority, the number one priority is not this, but it maybe could be priority number 2. Once onboard is accelerated and we have this pretty much in line, then obviously, we will look at any segment that it can ensure the recurrence. So this is our mindset when it comes to M and A and also organic growth that we're going to be providing to the business. I hope to have answered your question. No, I think that's really clear. Thank you. And then in regards to inventory, I'm going to start off here and then, Patilio, end as well. So we are understanding that There is some visibility about the improvement of the index of supply in the industry for the 3rd quarter. So we are already starting this quarter to deaccelerate the stock and inventory levels. But this is and strategic matter for us at the same time. We're measuring this daily. So all of the indicators we're looking at till now lead us to believe that this is possible we'll have more of a flat supply structure in the Q3. If we understand something is different, We'll take a step back. But everything is pretty much headed towards recovery of this level of inventory in this quarter. Great. I think that's pretty much clear. I think the inventory set up an adjustment or increase of the inventory is in strategic, and this is reflected a lot in our profitability, commercially speaking. And I'd say that the regularization or adjustment could bring in BRL501 1,000,000,000 of cash, BRL500 1,000,000,000 of cash back to operations, although we consider inventory to be operation. But as I mentioned, the monetization is about more than $1,000,000 And Our EBITDA is very important for operational cash generation. So if you consider EBITDA And our forecast on sales and you add on these two elements, basically that's our operational generation forecast. So we have an expectation for Strong operational cash generation this year. Perfect. Thank you, Padilla. Thank you for those questions. Great. Thank you. All right. We will move on to the next question now. I think there's also a video question here. And We have the next question now. Mr. Richard? I think we have Richard from Bradesco. Mr. Richard, can you hear us? Well, meanwhile, I'll talk about it. Let's move on with Guilherme from Safre. Okay. And then we'll for the next question. Hi, Guy. How's it going? Gudami, you're on mute. So sorry. All right. Now, yes. Great. Hi, good afternoon, Guilherme. How is it going? Hi, Roberto, Pagila and Dore. Thank you for I want to go back to 2 points. Just very quickly, I think we're already discussing this. You guys already mentioned this and I have a question about this. But It's important for us I think to understand the dynamics that are taking place there. So one is the market share gains that you guys have. We've noticed a very aggressive environment, right? Roberto, you were mentioning this. And yes, I agree with you. We've already seen this ever since the beginning of last year. But this year, especially, for example, we had competitors shifting in their commercial strategies to accelerate growth. So I've noticed that growth is coming around, but it's coming at the cost of margins. So my question is the following. Have you maintained growth? Are you being able to continue to have this growth and really capture sales with the stores closed, with the successful migration with the online and rollout of marketplace, but we've noticed that the margins are still positive. So there are some impacts maybe that are non recurrent with tax default. But looking up ahead, I want to understand that if Should we expect you to maintain this gross margin at this level? Or should we expect that you guys are going to try to defend yourself or maybe this market share gains would kind of give up a bit of margins. How are you looking at considering the performance now and in the relationship with the sellers and customers in regards to margins? So that's a question. And then also the second one is how you are looking at Mother's Day and after Mother's Day, right? I think another concern is that the comparison basis is maybe going to be a little more difficult now. So, you guys demonstrated actually in the release some of the market share gains and results In April, so you've noticed that these sales are reducing because of the comp, but do you think you can keep this kind of rhythm of growth? Well, thank you for that question Guilherme and ask your questions, right, in plural. But this environment that's more aggressive, which I agree is clear is pretty visible once again. We are we have about over 30 years Ever since I've been in retail online, physical, I've already seen retail in so many different ways. But together with me, I also have people with a lot of retail And to be honest, I don't see the market has this kind of aggressiveness that everyone's talking about. I've already been in markets that were a lot more aggressive that actually led many players to go bankrupt. But the market now, I don't really think there's so much of an aggressive approach that everyone mentioned. Okay. Yes, it's a little more aggressive than it was maybe in the 1st semester. But come on, it's very far from of the worst markets I've seen in my career in the past years. So once again, the ecosystem we have at Via, Who in the market has the necessary capacity and the conditions to grant credit to people that don't have any kind of income proof and not lose money in this process. We have what it takes, and we've demonstrated this. We are growing in a very precise manner in the youthful customer categories with credit or access to the products even without credit. So Our logistics are already present in all of the municipalities. So our ecosystem is pretty much ready. But now what we're working on is to bring in more people into our ecosystem. And the more people we bring, the greater it will be, more diverse it will be and the more recurrent it will be as well as more precise. So I basically only see good news up ahead capacity that this team has to deliver, right? Just look at everything we've delivered already. So this big team here at Via has what it takes and the consistency in line with strategy. So when I gather all of this, you really levered this business even more. And to be honest, we always look at this very carefully, all of the different trends that the other competitors present, but we've been able to overcome all of this, maintaining growth. So let's look at May. Now all of my stores are reopened. I am still growing at a significant volume online as well. And I'm still gaining market share as well. So, these actions that competitors have worked on already are already happening. So what am I doing if I'm continuing to gain market share? Well, It's a little difficult to have this kind of comprehension, right, without demonstrating it. But ever since the beginning, we've always said that we have the right assets. They're badly operated and have low technology levels, but we are going to operate this well. We're going to add these technology levels and we're going to transform this into a big in the right path. So but we have advantages because we have things that no one else will have, no one has at the moment. Maybe they will have in the future, But we're going to have spent a lot of 1,000,000 to build the logistics and the history of relationship and credit that we have with these consumers. So to be honest, looking up ahead, I continue to with accelerated growth, consistency and with levels of margins that are similar to what we're looking at now. This is how we are looking at Via Up Ahead. And when we think about the post mother's day period, We are still doing pretty well. We're still growing. We have still had excellent numbers and growth rates. And in the market share measurements, we are still growing above market level. So we'll have even more share gains up until now. I'm not sure if you guys had any questions about that. No, that's clear. I hope I have to thank you. I think the next question is from Richard from Bradesco. Maybe his mic is off. Richard, if you want to just use your audio, that's fine. So while we wait to solve this little technical issue, we have two questions that came in here Sebastian Pajelya from Morgan Stanley. And the question is from the online sales reps. Could we talk about how you structure the incentives for these guys? And do they sell 1P and 3P? And there's another question also about the long tail, how we've been evolving with this as well. So maybe We can answer Andrew's questions first. So about the online sales reps, we are really accelerated. And As we had seen in that graph where we demonstrated, we had BRL1.2 billion, and it's the same number in the Q4, even with all the seasonality that the Q4 brings in, the incentives, There is the same incentives that they have in the physical stores. So there is no big differential I would leverage this or provide something that's not consistent. So it is extremely consistent, this level of incentive that we're working on with the sales reps. And the main difference is that in this evolution, more and more, we are adding intelligence to the online sales reps. And then you also have some news here That's quite interesting. In April, we started this possibility of adding the carne also with the online sales rep. So From the April onwards, they can also have the customer's journey funded by the payment booklet system waste all of their interactions with the consumers. So it's something we're adding a lot of intelligence to. We believe it is It's important to remember that the penetration of online sales in Brazil is still at about 10%. As this penetration of online is becoming greater, then it starts to consider consumers that we already relate to all over Brazil. These are consumers that sometimes already have the habit of using online. So the online sales reps tool is very important to include these customers with new platform. So this hybrid model for online is a very important differential. And here we are talking about levels that no one else is ever able to reach. And this is really due to technology that we added and also the greater of our sales teams. Now we have a huge differential in our sales teams in the stores. When we look at average store with in regards to the market, we have more productivity and more sales per store. So this also added up to our online journey. And Denny, I think that's the question. And the second one was about the long tail. Well, long tail is really what I mentioned before. When this process has been very accelerated, it's going to happen in the marketplace. In 1P also, we have been complementing this, but the strongest acceleration will be in the marketplace. And during this year, we will have an infinite shelf with the perspective of having 70,000 to 90,000 sellers, into our assortment. So now I'll ask Richard to wait just for 1 minute. We're going to have Dani from MacPino. Good afternoon, Roberto, Pagilia. Thank you for answering my question. My first one is going on to the long tail topic also. You mentioned market share gains and accelerated rhythm of growth. But if you could maybe talk about how this seller addition process, and we noticed significant acceleration. So I want to understand how this has been happening. So if you could already share about May, so I can understand if we're still in this rhythm, if there was some kind of a cool down on this. And then in line with the seller addition process, another point I want to highlight and understand is how the incentives you're providing for long tail because you have that cap sales and how this is being influencing the margins and the major incentives for this with the onboarding process? And then a second point, Something you're a little timid about is about the free transportation of freight and cash back. But we've noticed this is spreading out a lot more, not only among marketplace players, but you can also see I want to understand what would help you accelerate these initiatives more. So you started off having them within the loyalty program, But I wanted to understand what you guys would have to search for to be able to accelerate this. And then in line with this also in the food retail. And I think Joao mentioned this category, that's not a priority as you mentioned. So what would make you maybe think that it is a category that needs this right bringing some recurrence to the marketplace. I know that in the payment book that you have this a lot, But I want to understand your mindset from a strategic point of view. Great, Zane. Thank you for the question. In regards to sellers, We started off with May with about 46,000 sellers. So we're at an accelerated pace with onboarding, and it's within our plan. Another piece of information is about profitability. We have a take rate that's about 8.5%. And Once again, this is not well, the take rate has very little influence on our total profitability. So here we have the sky is the limit, and I can do whatever we want as a strategy here. So we do not rely on this business model. And if we need to do something differently, it will impact basically nothing in our total profitability. Now in regards to cash back Brief, Ray, I'm going to ask you something else. Do you think there was a level of share that we're at growing 3 digits More than everyone else, do you think I really need to be throwing away money for this? I don't need to. So what we're seeing here is that if I need to do this someday, we have nothing is prohibited. We have no counter indications. But What we're calling this is basically the throwing away money, right? So we could call it cash back, free transportation, but all of this impacts profitability of the company. So since we're able to have really strong growth, stronger than all of the other players So far that I've disclosed the results, and when we look at the conference call fee numbers, it's greater than the overall market. So why am I going to rip money if I'm growing basically double than what the whole market is. And so if we need to, I know the market really concerned with doing things that could break through with our margins, but we think it is possible to grow and make money. We are still insisting on this thesis, but we will grow. The message is we will grow and gain market share. If I need to be more aggressive with the margins, great, but we have an advantage here. We didn't spend our fuel yet. Now we're growing at 3 digits way higher than the market. If we add more fuel to the business will grow even more. But then it's a bought growth and not the sustainable growth. So cash back, at some moment, just becomes unsustainable. And then when it becomes unsustainable, what do you have to do? You should reduce that and you stop and then you have a drop in sales. So this is an adrenaline aspect that our loyalty program is going to be super complete, But there's going to be differences. We have some subscription programs in the market that have a bunch of other services embedded, But we're going to have strong loyalty programs that are not going to have subscription costs. So instead of cash back, I'm going to provide benefits to these customers so they can really be falling in love with us here. So let me give them benefits so that they can have the interactivity with us. I'm going to give them entertainment among many other aspects about we're going to be doing in our loyalty program, which as we mentioned in our Investor Day, it's going to be between the 3rd 4th So we believe in this a lot more. We think it's more sustainable to work on the customer relationship than just give them some kind of a cash back thing, right? Who will guarantee that this customer is going to come back, right? So we believe in another way through relationship with consumers. And I think this is proving to be winning strategy. So there's no if the strategy was not right, we wouldn't be winning the share and growth that we're winning, right? So And in regards to food retail, we have no limitations in regards to this. That's something as we create to the market when We are working on a more accelerated marketplace process. What is my competitors that are a little more ahead in the marketplace are capturing, I'm going to start capturing with the marketplace now. So we have strong capturing Now for the recurrence and we're really looking at all of the angles and everything that can lead to recurrence through M and A or also to included in our ecosystem through partnerships. So I also have food retail in the middle of this process as well. So you mentioned in the release that you will be expanding super quick deliveries and that seems to be something more related to a ziplock, but not through the e commerce. But could you really help me understand this? Is it within another business unit or would it go through the marketplace again? Azapplog is already prepared to work on this. They've already launched this and Azapplog is an open platform. So it's valid for us and any other players that want to work on this. So for us, it's pretty much ready. If I want to perform Food delivery is pretty much ready. So we're looking at many different players performing different acquisitions. So our solution with Adapt Block is leading us to this roadmap for development. And of course, I won't stop taking advantage of other things that have in house, but I don't want to give you too many spoilers about what we're imagining for the future. So that well, yes, that's clear. Thank you so much. Thank you, Danny. So now we will call our next question. That will be phone based and it's Bob from Bank of America. Thank you, Tani, and good afternoon, everyone, and congratulations for those results for Berto. How do you compare And how should we consider your portfolio growth? Well, excellent. We are it's very comparable, the default rate online and offline. So we launched this platform online in the Q2 last year and We've been really warming up our credit engines for this business, which led us to be very precise now as we go to the open ocean. So we have about 20 some 1000000 consumers open to perform the online payment booklet with us. And these are consumers that we already know about. So as the months go along, we open up more and more customers and we're very secure and confident about this. So the prospect that we have about this is that we can really See the success of the online payment booklet. Searching for we're going to be looking at the offline payment book sales when it comes to penetration. We think it is feasible. But we also think that when it comes to results, it's Super feasible to have results that are close to on the offline payment booklet. So, Benqi is also leveraging all of this and in regards to the payment booklet versus the purchase of products, We will also be providing personal credit and loans through bank using all of the credit engines that we already have structured here. And this segment for digital credit is something that we really hope to be growing in a lot. And then we'll have default rates that are very comparable to what we have in the physical. So that's for customers that already Known as a recurring customer? No. As I mentioned in the presentation, We also have other customers that are known and others that are not known. So we entered cities where we don't have any stores yet. And This is a new customer base that's entering our ecosystem, and we are very accelerated in building the space with all of the necessary concerns. So we're very careful with credit. So we're not going to be starting any kind of adventures here, but we have our feet on the ground when it comes to the payment program. We already proved in this model that we can ramp up this a lot to the new customers and we're going to bring in a lot of new customers to our ecosystem as well. Yes, very similar exactly in regards to default. Great. And what are you looking at when we consider the extra pentacon Right. But no one is really maximizing its value even though it is a big brand. Well, Bobby, we are using it. So we launched the Esa Pompano app in the Q3 last year. And it's been growing. We've been adding some improvements. So we are providing the same kind of treatment as we handle the other brands and really leverage this business. All right. Having said that, we can end the session. Roberto, do you have any final remarks? Roberto? Sorry, I was on mute. But once again, I want to thank you all For your interest in the company and the time dedicated to the company, I wanted to say that we continue to grow and our driver is growth and Our new initiatives that we've considered for the road map this year are already under development and will help to leverage via even more heading towards the growth levels we're searching for and also in regards to market share and customer relationship. As I've been saying ever since I entered the company, we have the correct assets in the company and now we are placing new levels and transforming this ecosystem with consumers at the center and with a huge team operating. So our capacity for strategic planning and for implementation of the strategy is being placed to the test ever since we entered and we've been delivering this consistently. So I consider Via to be an ecosystem that is Dreamly prepared to handle this market that we have currently and the market we'll have in the future. No doubt, this company will be one of the highlights in the business online in Brazil. Warm regard. Thank you so much for your time and attention. Okay. Thank you very much. And of course, the IR team is available for follow-up questions if anyone had any issues with the connection. Thank you very much, everyone.