Earnings Call: Q1 2021

Apr 30, 2021

Good morning and thank you for holding. At this point, we would like to welcome you to the conference call for the group of Fleury for the Q1 2021. We have with us today Mrs. Jean Toutsoy, the CEO and Fernando Leon, the CFO, the IRO. We would like to inform you that this event is being Q and A session. Question and answer session when further instructions will be given. This event is also being broadcast simultaneously over Internet via webcast and can be CYS at the address, www.glauri.com. Brri, where the respective presentation Can Be Fun. You can watch the slides at your own convenience. The replay of this event will be available soon after closing. Q1. We would like to remind the webcast participants that they can post through the website questions for the Fluoride Group. Company. Before proceeding, we would like to clarify that forward looking statements made during this conference call referring to the Grupo Flory business outlook projections. Operational goals and financial goals are based on the beliefs and premises of the company management SEC as well as on information currently available to the Fluoride Group. These future forward looking statements are no guarantees of performance as they involve risks, uncertainties and premises as they refer to future events Q1 and therefore depend on circumstances that may or may not occur. Investors and analysts should understand that general conditions, sectoral conditions SEC and other operating factors could affect the future results of the Fleury Group and lead to results that differ materially from those press in these forward looking statements. We would now like to turn the floor over to Ms. Jean Tsutsui, fiscal year. A good day to all of you, and welcome to the earnings release for Fluorix for the Q1 2021. Here at the Plavix Group, we are success with the acceleration of growth. We believe that the most important metrics for a company based on a healthcare platform the increase in revenue, the number of live service and the ability to integrate new products and services. Fiscal year 2019. We are satisfied with the growth presented in the Q1 of this year, 25.1% Q1 compared to the same period in 2020, reaching a revenue of 964,300,000, Q1, but we want more. It is worth noting that this growth in revenue, in addition to representing strength in our core business operations was accompanied by a significant increase in the live service by the group through SAU GID, our healthcare platform launched in September of last year. Of the approximately 1,100,000 lives service by the group in the Q1 2021, 9.8% came from Sao Jide. The percentage is double that you recorded in the Q4 'twenty. In just over 6 months of operations, the platform has already managed to generate substantial volume of live service. Now what lies ahead? The answer is more growth. It is important to say that in addition to the strong growth recorded in the quarter. We maintained robust results. EBITDA increased 45% visavisame period 2020 reaching BRL285.5 million and net income reached BRL118.6 million, a 102% higher than the result of the Q1 2020. The potential of the marketplace becomes ever more evident when we analyze that this crop of lives was generated only by the B2B business. The B2C version of Sao Didi, launched in February, is still in a pilot phase. Q1. When it is open to individuals from throughout Brazil, there will be a health service subscription with monthly half yearly or annual plans call for the call to call for the call to call for the call to call to telemedicine consultations, routine tests and other offers. In our view, the B2C C version represents an option for access to quality healthcare for all Brazilians. Additionally, the tribute to the sustainability of the entire health sector. No front of the group's operations has expanded more than the telemedicine service. Since it was created up to present, there have been more than 300,000 telecom presentation. However, more impressive, the absolute number is the growth curve. If in June 2020, the company carried out 300 consultations per month. This is done in a single day now. Because of this, in the Q1 2021, the entire volume of 2020 combined and an increase of 104% visavis4thquarter2020 the out of the total number of patients seen in the Q1 of 'twenty one, almost 82% of them were using the service for the first time. Call in order to offer a high quality telemedicine services. With a resolution rate of 89%, Saudi telemedicine has more than 670 hired physicians. The advancement of telemedicine proves 2 of our most important premises for the future growth of the company. The first one is that health consumption Will Be Increasingly Hybrid with patients accessing products and services in person as well as digitally. Q1. An interesting fact in this regard is that almost 40% of the teleconsultations performed by the group originated in places where the company does not have a physical presence, including abroad in countries such as the United States, England and Portugal. The second premise is that the technology and the development of the platform will increasingly offer integrated solution and recurrent services given to the same client. Test. They would go once or twice a year now. The contact is much more frequent and takes place in multiple channels and the service in each channel has the potential to lead the patient to new interactions with the group. An example of how this happens in practice. In the Q1 of this year, SAU GID boosted a revenue of BRL6.1 million in services for all brands and patient service centers, double the amount recorded in the Q4 'twenty. Q1. Although the value is still modest, the growth curve shows the size of the opportunity that lies ahead. Another front that has been expanding strongly in addition to telemedicine is the client home service corresponding to 7.7 percent of the gross revenue of the quarter, an increase of 86% visavisameperiod2020. The Q1 of 2019. Today, the revenue generated by Home Service is greater than any patient service center under any banner of the group. Consumer by being able to identify the new needs of the consumer who seeks convenience of home service. The company was able to capture value and create a strong avenue of growth. Maintaining the pace of acquisitions. In early April, we announced the acquisition of 66.7 percent of the Sao Paulo chain VITA, the reference and consultations and orthopedic surgeries as well as rehabilitation sessions. The relevant part of the investment will be destined to organic and inorganic expansion of orthopedic sessions in the country. Q1. It will also position the company with one more robust offer in this specialty. We already have the Advanced Center for Osteomuscular Imaging. The VITA acquisition is added to almost a dozen of other movements performed in the last 12 months, which contributed to make the company evermore a protagonist in the healthcare sector. As a reminder, in this period we launched the largest healthcare platform in the country, Sao GID. We created one of the largest Corporate Venture Capital Funds in Brazil, Cortex. We started a continuing education service for physicians, Health Professional Students and Residents, Pupila. We acquired the Mossir Cunha Melodical Clinic and the infusion center in Pine Boat. We launched the genetic testing, Plattsporin's DNA. Company. We developed a consultancy service, the integrated care for companies. We now have 6 21 contracts. We inaugurated the Fleury reproductive medicine sector, all of this in the midst of the COVID-nineteen pandemic. The future. All of these initiatives are connected to our mission of providing increasingly complete and integrated solutions for the management of Peoples Health and Well-being. As we have said before, it is precisely because we are a medical origin company SEC that we have a legitimacy to integrate what today is available only in a fragmented way. At Grupo Feuori, shareholders. We believe that the role of companies is to contribute to a better society. That is why for decades, we have adopted the best social, environmental and governance practices we are accelerating on this field. To leverage amount of the work that is already performed by the company. We have announced the establishment of the group's first ESG committee forum by 4 members. The new committee will reinforce Grupo Flory's permanent potential 2 ESG Principles and the Business Strategy and will increase discussions on the topic in the company always thinking of its impact in the long term. In this quarter, we also created in partnership with the Grupo Sabin, the Women's Heart Movement, the national initiative to raise awareness among the female population about the importance of preventing and adopting healthy habits to reduce the chance of developing heart diseases. Today, cardiovascular diseases are the main cause Vitality of Women in Brazil. With regard to governance, I would like to register here my thanks to Carlos Marinetti, who since 2014 has held the position of CEO and his group. He has left a fundamental legacy, laying the ground for several cycles of growth. Beginning now, the company will have as its main sector significant expansion of the speed of its growth that will take place in expansion in the number of live service, acquisitions and the digital transformation with an offer of Evermore integrated services as part of our healthcare platform. Additionally, company. We will continue to move forward to become a benchmark company in all the ESG dimension industry in the direction of a country and a sector that meets the necessary premises of sustainability. In this context, we are certain that Q1. What will be important is our market differential, which is trust, and it is a powerful and mandatory the business, as accessed in the healthcare sector, present in the relationship we maintain with all stakeholders consumer and which makes us the preferred service provider through the leading brands that we have in most of the markets where we operate. Q1. Finally, I would like to thank the dedication of our 12,000 employees and 3,000 physicians Q1 of 2019. In times of an exacerbation of the COVID-nineteen pandemic, the commitment and the diligence of this incredible team 2nd quarter, however more necessary to ensure that the group will carry out its mission of offering quality health to the entire country. The Q1 of 2019. Conference call. I would now like to give the floor to Fernando Leon, our CFO and the with the presentation offering the financial results for the Q1. On Slide 6, we see the performance of consolidated gross revenues for the group. Gross revenue attained its 2nd highest historical level in the quarter, totaling CNY 964,300,000, a growth of 25.1%. The patient service centers presented a growth of 22.9% and a B2B 36.8%. Call. In the next slide number 7, we show you in the top graph the evolution month after month of revenues in the Q1 2021 vis a vis the Q1 2020. We continue to observe the strong growth of revenue in the last month. I would like to highlight the important expansion in the months of January February of 2021 fiscal year from 11% to 15.4%, respectively, considering that the base of comparison for the same period the previous year, that is to say, January February of 2020 had not been impacted. We recorded at that time a 2 digit growth. Fiscal year 2019 in the month of March 2020. As we know, we were strongly impacted by the restrictive measures adopted at the beginning of the pandemic. And now, we present an expressive growth of approximately 56% Q1 of 2019. Now the same growth movement can be observed in the B2B that presented an expressive expansion of 36.8% in the quarter. Thanks to the higher volume of elective procedures the contribution of COVID-nineteen tests in hospitals and reference laboratories. Q1. In the graph below, we show you the share of the COVID-nineteen exams and the results. Quarter. There were approximately 600,000 exams in the quarter. Percentually, compared to the total revenues, the RT PCR and serology test recorded a small reduction when compared to the previous quarter, representing 9.7% of total gross revenues compared to 11.1 percent in the Q4 'twenty. They also represented 7% of the revenues of the PSCs and 22.4% of the B2B revenues. The share of COVID-nineteen exams compared to the gross revenues of the company had the lowest representatives this quarter since the beginning of the pandemic. We now go on to Slide number 8, and we see in greater detail the performance of our brand portfolio. Growth revenue of our Patient Service Centers had a growth of 22.9% in the quarter, BRL 795.5 million. All of the company brands had a relevant growth in the period Q1 as you can observe in the graph. On the next slide number 9, we highlight the evolution of costs and operating expenses. Quarter. In the graph to the left, you can observe that we had an increase of 15.2% in the cost for the quarter. The variation is mainly due to cost with direct material and the intermediation in exams due to the cost of acquisition of reagents to carry out the COVID-nineteen exams and PPE equipment for service in the unit. The cost of personnel and medical services had an increase of 8.9%, representing 31.7 percent of net revenue, a reduction of 4 74 basis points visavisheprevious year, once again recording a relevant gain in productivity accompanying the higher level of demand that we had in our service units. To the right of the slide, we present the operating expenses. The quarter. We had an increase of 12.6%. The increase is mainly due to expenses relating to provisions for participation in profit and the long term incentive plan for the company. We go on to Slide number 10, where we observe that EBITDA reached BRL285.5 million in the quarter, a growth of 45.7 percent with a 31.9 percent margin, an expansion of 4.50 basis points visavis the Q1 2020. Presentation on Slide 11. Net income for the period reached BRL118.6 million, a growth of 102% Q1 when compared to the same period 2020. Net margin was 13.3% compared to 8.2% in the Q1 'twenty. In the next slide number 12, To the left of the graph, you'll see the operating cash flow that recorded BRL199.2 million for the quarter, an increase of 52.2 percent, impacted mainly by the strong EBITDA growth during the period Q1 of 2019. The variation of accounts receivable had a more relevant impact due to the growth of revenues in the quarter Q4 2020 and also in the balance of the supplier's account due to the higher level of investments carried out during the quarter. To the right, the CapEx for the first quarter totaled BRL51.3 million with a growth of 26%. We go on to Slide 13, where the ROIC results of goodwill reached 47.2 percent in the Q1 'twenty one. To the right, we show you the follow-up of the NPS quarter that reached 73.1 percent with an improvement when compared to the Q4 'twenty. Finally, in Slide 14, Q and A session. We would now like to go on to the question and answer session. Thank you very much for your attention. Thank you. We'll now go on to the question and answer session. Mr. Joseph Tordano would like to pose a question. A good day to all of you. Good morning, Jean. Good morning, Fernando. Thank you for taking the question. My first question refers to the foot print that your service centers have, which is the company strategy and which is your medium term guidance that teams to be coming to an end. Are you thinking in more openings? Or are you thinking of rationalizing the footprint. Another thing we have been questioned about is the growth. The we understand that in this Q1, there was quite a bit of noise, especially at the end of the quarter. Q1. I would like to know if you can share with us which would be a more normalized underlying growth. And finally, call. If we could further explore all of the new initiatives, you coming 3 to 5 years, for example, in terms of representativity revenues and EBITDA. Thank you. Good morning. This is Jean. We hope that you are all well. Now when it comes to those questions, Jordan. First, about the footprint of our patient service centers. We would like to remind you that in the last years, we opened up 50 64 units through an organic growth and added 64 units through acquisitions. Yes, we do focus very carefully on all possible opportunities. We just inaugurated a new Flotie patient service Center on Reproductive Medicine. And we, of course, consider new opportunities and new acquisitions in areas where we do not have Diagnostic Medicine. We're very cautious in this and we pay a great deal of attention to all opportunities. Q1 and we should remind you of the growth we have had in mobile services where we don't need a patient service center. The fiscal year. We grew 80% this quarter and we're seeking more opportunities. Now when we look at our present day centers, the Q1. Perhaps we can add other services, especially in the afternoon period where we seem to have a lower flow of patients. Call. I would like to remind you that since the beginning of the COVID-nineteen pandemic, we have all of the safety protocols in the service centers, and we have to make adjustments to service our clients even though we do maintain distancing. 2, we're very attentive to this type of look. And as I mentioned, we're also looking at whatever will make sense to allow us to grow organically and to carry out acquisitions. In terms of the growth of COVID, you observed that this quarter, fiscal year. We have a COVID revenue of 19.7% that is lower than what we had in previous quarters. The Q4. It was 11.1 percent of revenues from COVID. This is a reality. There is certainty in terms of the behavior of the pandemic this year. Unfortunately, we have reached 400,000 deaths. The vaccination program move forward. Everybody is thinking of having vaccination for priority groups until September, but we will continue to have revenues from COVID this year, although it will decrease through time. Fiscal year 2020. We had a robust growth, Jordan, even without COVID, which shows the strength of our brands, the strength of Diagnostic Medicine. And I would like to remind you that we have a large group of people that have stopped carrying out exams to care for their health. In the cardiovascular part, oncology, the the news as part of other strategies. I would like to underscore the figures that we just presented, giving you more visibility of the exponential growth that we have had in number of lives. The telemedicine consult patients only in the Q1 were 177,000 more than the entire year of 2020. Q1 of 2019. This is a trend and SAUJI Ide is growing significantly. Another relevant data when we speak about the platform concept is a number of lives connected to the platform. This figure of 9.8% of live service in the first quarter company from Saudi Day. This is double the previous quarter and shows you how much we can grow. When it comes to new businesses, the fiscal year. Our vision is that we will have hybrid services. And although we grow the digital solutions we also see opportunities of opening up new avenues services that we tend to call other services. We refer to ophthalmology, orthopedics, the infusion of medication, fiscal year 2019, and our vision is to have a large avenue for growth. I think that we still have space to grow patients through M and As and diagnostic medicine to also grow with the new services that are but beginning now, but we have the great opportunity to continue to grow with these services because they're in accordance to the needs of individuals Q1 based on the platform concept, enabling us to have an integrated healthcare during the entire journey. The healthy individual can have the help of the digital part helping to improve his health. Q1. Now when we have situations of disease, you also require physical care. And the fiscal year. This is how we will complement our service portfolio with different specialties to be able to accompany the individual in the Volt Healthcare journey. And without a doubt, this digital transformation will focus on the lives that are connected to the platform and that through time will telemedicine, we can offer telemedicine consultations that offer mobile services where they can come to our patient units. The should they have any ophthalmological problem, they can go to our ophthalmology center, which means that the throughout the patients or clients' lives, we will be able to offer all of the necessary services. Fiscal year. We do have a outlook for robust growth in these new strategies as well besides the digital strengthening. Thank you. Giordano, I don't know if I responded to all of your questions. Please allow me a follow-up to quantify, Zai, especially the part of medication infusion, which seems to be more scalable. Q1. Do you have an estimate of the market size for that? And secondly, you spoke about accelerating the mergers and acquisitions. The month in M and A in the outpatient and diagnostic part. Call. Thank you. In terms of infusion, we began this business using the physical space in our patient service units. We included infusion in the units where we already have an appropriate infrastructure, and we saw that this could be scaled up Swissy acquisition of SEEP in the periods of closing of the business. We're still working, but we have a $100,000,000 of revenues per year to the group with the use of immunobiological medication. Service and this group has 6 patient service units. With this, we also have a higher power of negotiation with our suppliers because we become the more relevant player in Sao Paulo when it comes to the infusion of immunobiological medication and we can spread out to the rest of Brazil. When it comes for growth. Of course, we look upon all opportunities of growth. We're beginning this cycle not only with an eye on diagnostic Biotech Medicine for NewLink and all of the growth that we could have with start ups. Q1. Do remember that we inaugurated CORTEC Center, which is a CBC for HealthTech. So we're looking at all opportunities. Now when you speak about larger M and A, they are also the conference call on the table, but of course, there will depend on other motivations, but all of this is within our radar. Thank you. Thank you very much, Yan. Call. Mr. Gustavo Miele from Itau BBA would like to pose a question. Good morning, Jean. Good morning, Leon. Thank you for the presentation. I have 2 very quick points. Q and A session. I would like to know about the price with the operators. Fiscal year. This will probably be a year that will be below average. And I would like to know if you're thinking about a relevant change strategic dynamic visavis what we have observed in previous years. My second point Q and A session. It refers to the revenues Annual Businesses. Will there be a backlog fiscal year because of the elective procedures and what this represents in the coming quarters. The fiscal year. Will this represent a bottleneck because of this repressed demand that there seems to be? If you could, therefore, refer to this backlog of exams that will have to be carried out in the coming quarters. These are my two points. Thank you very much. Connected. The Flory conference call will be back in a few instances. Conference call. Once again, the call from Grupo Floria is back. You may proceed. We do apologize. Gustavo, can you hear me? Call. Yes, we did hear your questions. I will once again begin the response because we had a drop in line. In terms of the adjustment for operators, we have worked very closely with them and I think everybody follow-up on the reduction of claims of operators in the past. And of course, there's a balance between the treatment of COVID fiscal year 2019 and a reduction of other chronic health issues, but we don't see a great deal of difficulty in terms of a readjustment. Fiscal year. What we would like to underscore is that we have always been very aligned in terms of how to better integrate the system, how to reduce the potential for waste. And this is something that will aid us when it comes to working with a more sustainable system. I will give you an example, Gustavo, when we patients who have a very high resolution rate in 89% of the patients. We're able to resolve the patient's problem through telemedicine. And ensuing this, we propose physical care when it's necessary. And of course, it is difficult because hospitals are now treating patients with COVID. Q1, so we have a greater efficiency in the health care system. Very generally, we're adopting these integrated solutions to gain efficiency, to improve quality and of course to remain sustainable. This is our vision. Now when it comes to a demand for exams that hasn't been fulfilled during the COVID pandemic, yes. We believe that we do have a situation in which many patients, especially patients with chronic diseases have stopped having a very close follow-up. Many have stopped carrying out diagnostic exams and fortunately, fiscal year 2020, because we do have a serious health condition in the country that requires attention. Some diseases, of course, do require follow-up if they're chronic or an early diagnosis. This will avoid a higher cost of the disease. And we have the Society of Cardiology, the Society of Oncology showing that several patients have stopped carrying out their follow-up. Fiscal year. And of course, we will have to begin to focus on this follow-up and we do have some proposals. Group of Flori. We are ready to offer this service. We have teams that have been trained. This. This is something we have done very well in the pandemic. Our personnel is ready. So we are here to offer support to all of the population that requires this type of service. Thank you, Johnny, for the answers. Thank you, Gustavo. Good morning, Jean and Liao. Thank you for taking my question. We do have some questions thinking strategically about the basic business. If you still have room to continue to consolidate the sector and M and A strategy as the Q1. There is quite a bit of fragmentation in the country. Those who cannot follow what you're doing, what do you think about this? Company and the main brand Grupo Floti is a premium brand. And call. If you do have companies that co participate giving coverage to Fluid. Q1, if you could use the platform and enhance the flow of other brands besides that of the Grupo Ferrari. And call. I would like to speak about diversification. In fact, telemedicine will be the driver of this diversification if this is the main vector for the platform. How are you going to get organized in terms of business units going forward because you have very different businesses in hand. Thank you. Call. This is Fernando Leao. Thank you for the question. Q and A question and then Jean will continue to respond to your questions. Fiscal year. When it comes to the M and A, we're continuing on with that. We do have significant appetite for that. And we're looking not necessarily only in the diagnostic market, of course, the fiscal year. We're also looking at additional markets where we have had this growth in other specialties. Call. Yes, there is quite a bit of space going back to your question. There are very relevant markets in the country Q1, where we still do not have a foothold. And of course, this is one of our priorities to look upon M and As, conference call and there are other timely opportunities in other markets as well with the possibility of once again beginning our presence there. The pipeline is quite robust. The team has considerably increased its capacity to analyze and fantastic M and A processes. From the financial viewpoint, the company is extremely well prepared for this journey of growth 3rd merger and acquisitions. We have very robust results, a very healthy cash generation and a leverage and indebtedness that are growth very comfortable, which gives us room to look at several different alternatives, not only in the diagnostic Czech market, but in the other fronts of new services that we are launching. John, questions. Call and you bring out very important themes. The first topic that I would like to highlight is that last year during the very difficult year that we went through. We saw that health became more valued by everybody. We have data that says that even though we have an increase of unemployment in the country, unfortunately, fiscal year. We have also had an increase in the number of beneficiaries in health plans, and we see this deployment that shows that people are valuing their health evermore. And we have had an increase in number of beneficiaries with access to our brands. Doubtlessly, sustainability is a very important factor. Next question. And if we offer solutions that will truly fulfill the needs of the clients, the patients, the physicians. And if we have a greater efficiency in the sector, we will continue to grow with our present day business, the businesses that presently are positioned in the premium and middle and upper levels. What you asked about the platform is very interesting. Call. What is important for us is to have an individual connected to a system that could fulfill all of their needs constantly. Call. All of the health exam results can be put in the platform. All of the health needs can be put there. And then these individuals will be part of an ecosystem. The platform ends helping us in caring for health in this way. The people who truly trust our brand to do this and this of course is highly relevant. We have Fed Intimacy to Care for the Health of All. And without a doubt, this is the vision that we have that we're going to grow through new businesses. We are discussing that view of having business units because, yes, they are somewhat different businesses. Q1. Now we began with the laboratory, then we went on to diagnostic centers. We now have treatment, integrated offers and the platform. And without putting aside the fact that we have other businesses such as the Genome business that had a growth this quarter of 31%. Q1. And if we look at the future of precision medicine, it is highly promising. So very generally, we're quite optimistic with this strategy and more than a strategy, the execution of this strategy, we have a team ready to execute this strategy. Call. Thank you. Thank you very much. Rigatti:] Finisio Ribeiro from UBS would like to pose the questions and my question is very objective. Call. It's a question that I'm going to pose in parts, the Q1, which has been the behavior of the margins if we compare this with the year 2019 2020. My second question, looking forward. And you have spoken about growth and several strategies, fiscal year 2019, which is the impact of SG and A that we signed 2020, 2021. I'd say savings are going to be reinvested. If it Q1. If it makes sense to imagine that the same scenario will be upheld going forward. Hello, Vinicios. Thank you for the question. Let me begin answering it and then Jenny will add to the response. Fiscal year. As you mentioned, we have several moving parts when we look at the company results. And this is the dynamic, especially revenues because of the effects of the pandemic will have a considerable impact. And all of the the differences that we had way back until the year 2019. And there is a growth curve with periods of instability and of course impacting the revenues as well. What I would like to say in terms of margin company is working very diligently on costs and expenses presently. Q1. We understand that it is absolutely necessary to have a core business operation that will deliver relevant results as we continue to grow and gain market. The Q1. This will enable us to enter a cycle of new investments, whether it is in the digital part in Saudi Day with new services, with new platforms, so that we can work based on a financial discipline that we have already embarked on. So we do observe efficiency and productivity gains. And I tend to say that whenever the company gains a few additional points in growth and revenue. We the have that very good role of bringing those additional gains, transforming this in operational leverage, the Q1, and this is how we have been working. Now the second part of your question regarding new fronts for margins that we may have or how the margin that will come from these new initiatives. Q1. Each new initiative has a specific level of margin for that business front, for that business unit. And very generally, some the will have a higher level of profitability than our business at present. Others will have lower margin levels, of course. Tried TO Have Sustainability and we have an installed base of units that is quite large. Q1 and what we're attempting to do is to connect all of this that integrated offer of services that we have through our platform. We'll also leverage the growth of these new specialties, these new services. The Q1 of 2019. When we enter a new business, we will not only leverage the business, but also its profitability. Now the combined margins of the group fiscal year 2019. We will depend on the speed of each of these movements vis a vis what we have going forward. Company. We carried out a relevant acquisition that has brought more than BRL100 1,000,000 of revenues for the unit, which change that this happened at a very fast pace and it will have a relevant contribution in terms of the margin, this additionally to what we are offering to the company portfolio. The smoothies growth as we mentioned and in so far as possible with a great deal of synergy. Q1. But yes, we do need to grow and to build this journey of integrated healthcare. And in some situations, the Q1. If you have many lives connected to a platform, you have a network effect with even other businesses, not only offering our own services, but also offering the services of other parties through our platform. Call. So we can't do this without necessarily having new investments. We become more asset light. Fiscal year. But at this point in time, we're still in a phase where we will have to invest, we have to grow and the efficiency balance, which is what we always look will come when we are able to attain synergy. The focus now is growth, transformation, digital transformation and to strengthen the platform strategy evermore. Thank you for the answers. Thank you very much. Gustavo from Bradesco would like to ask a question. Good morning, Jean. Good morning, event of lives connected to people who have greater engagement. I know that it's very early on, but is there a greater recurrence of Primary Healthcare. Are there any signs of this? And the second question refers to your expansion plan. The Q1, if you will have a long term expansion in the next 3 or 5 years to include this in our valuation. Thank you very much. SABL. When it comes to Saudi Day, we brought you the data of 10% of life. Q1 and through time, we observe not only the growth in the live services growth visavishelast quarter, but also greater engagement. Our goal is to have the individual remain with us for permanent healthcare. Q1 and if they have the need for other services that we will be able to offer them. The answer is yes. Q1 of 2019. We not only have had a number an increase in the number of live service, but also greater engagement, greater recurrence. Q1. And another interesting piece of data, although it is modest, is the revenue that comes from diagnostic medicine the debt that allows us to treat the individual at several moments of their healthcare journey. Fiscal year. When it comes to the expansion plan, as I mentioned, we're thinking of expansions via M and A in the core business Sohrabort through new businesses, and we do have organic business units that we're going to the COUT in those regions where there is room for us to grow more specifically. Thank you, Gustavo for the question. Thank you. Rafael Alves from BTG Pactual would like to pose a question. The Q and A. Good morning, Jean. Two questions at my end, both referring to SAUJI ID. First of all, about the economics on the platform. Q1, if you could comment on the revenue for the Q1. And a large part of this came from teleconsultations. We carried out some calculations, and we would simply know if these calculations make sense us to see which are the revenues coming from the platform and what you're going to do so people adopt SAUJI DEI as your reference platform. Thank you, Samuel. Fiscal year 2020. Simply to clarify this, we brought the figure of RMB610 1,000,000, but this is the revenue of diagnostic Medicines that arise from telemedicine consultations. Call, and it is not 6.1, I'm sorry. Now why did we mention 6 0.1 because in some cases, the revenue will come only from the telemedicine consultation. At other times, when the individual is already in the platform and requires other services. They will also have that service in the other links. The the patients with us and will receive other services that are not necessarily through telemedicine. Q1 to give you an idea presently along with our new businesses. Saudi ID PRAO represents 2% of the total revenues of the PRAOI Group. What is more important is our ability to give trust ZetiZev not only through an increase in the number of lives, but with revenues that will come from these clients investors that will remain with us through their lifetime, fulfilling their healthcare needs. The Q and A session. Question about your conversation with the operators. Yes, we have celebrated these conversations, Sabol, and I think there was a very good urgency of appropriately using resources on-site. I always say that health conference call has several different levels of complexity. Now if you carry out the proper attention at the appropriate level. You improve the cost, you improve the outcome. And of course, this is good for operators in general. Q1, and this is what we are speaking about. We have worked much more closely with operators to offer integrated solutions, the questions and this has been very positive. Thank you. Thank you very much. Thank you, Samuel. Call. At this point, we will end the question and answer session. We will return the floor to Mrs. Satsui for the closing remarks. I would like to thank all of you for your participation in our earnings results call for the Q1 2021 and your interaction. We're beginning a new cycle that will have as its main vector an increase in the speed of growth and the leverage will be expanding the number of lives that we service, intensifying acquisitions and speeding up our digital transformation even more integrated services as part of our health platform strategy. You can be sure that we will be the more relevant company that is present in the day to day well-being and health of people as well as focusing on the sustainability of healthcare in our country. We have a differential in the market, which is the trust of all of the healthcare operators. We are the preferred group for clients and physicians. Myself, Fernando Leo and our team at your entire disposal. You can always count upon us. Conference call. The Grupoillary conference call and here. We thank all of you for your participation. Have a good day.