Earnings Call: Q3 2020

Oct 26, 2020

Good morning. Welcome to Ipira Pharma's Third Quarter twenty twenty Results Conference Call. Today with us, we have Mr. Bruno Oliveira, CEO and Mr. Adomario Coto, CFO and IRO. We would like to inform you that this event is being recorded and all participants will be in a listen only mode during the company's presentations. After the closing remarks, there will be a question and answer session for investors and analysts when further instructions will be given. We would like to inform that questions can only be asked by telephone. So if you are connected through the webcast, you should e mail your questions directly to the IR team @riepeda.com.br. Today's live webcast may be accessed through the company's Investor Relations website at epeta.com.brir. We would like to inform that some statements during this conference may constitute forward looking statements. Such statements are subject to known and unknown risks and uncertainties that could cause the company's actual results to differ materially from those set forwards in the forward looking statements. Now I'll turn the floor to Mr. Bruno Oliveira, who will begin the presentation. Mr. Bruno, you may begin your conference. Good morning, everyone, and welcome to our results call for the 2020. Before I go into the operational performance of this quarter, I'd like to talk a bit about the impacts of the pandemic on the pharma industry and how eBeta is responding to these trends. Seven months have passed since the beginning of the pandemic. So we have been focusing on preventive and chronic treatments, and we are using technology to interact with doctors and drugstores. Over fifty percent of physicians are using telemedicine, and over one third of consultations are, being held online during the pandemic, which also affected prescription, which was regulated in Brazil in its electronic form. So drugstores started adopting e commerce, and, physicians received 80% of their consultations online. And now this level is at about 15% to 20%, which should remain in our opinion. Epata is responding very quickly to these new trends. With regard to media, we consistently increased our investments in e commerce. In 2018, it represented 8% of our total. And now it represents around 22%. And we expect that in 2021, it will represent 30% of our investments in media. So we are able to spread our investments in media across more brands and increase the levels of conversion and sales for our investments. On the medical promotional model, we invented a remote visiting model in 2019 to assess in which positions this hybrid model would work better. We're also using the same models to send free samples without necessarily being there in person. With that, we were able to face the challenges of the pandemic because at the March, we had 1,000 medical reps at home without being able to visit people in person. At the April, everyone was working again on a virtual model. Now we have a hybrid model for visits, which can still be improved, but we do believe that this will be the model that will remain with in person and remote visits according to physicians' needs. On the e commerce side, sales have doubled from 1% of sales to 2% now. For major drugstore chains, this figure is a bit higher. It's still a low level in comparison to other retail areas, but this is a trend that is here to stay and we want to be at the forefront in this area and ahead of our competition. In Re, we launched our e commerce direct to consumer platform, where we have direct sales through our website and where we also can plug the platform into other existing markets and new ones. We also want to leverage ecommerce initiatives with our main clients. We're investing a lot on this front. Our team is 100% focused on trade, digital trade marketing, and we focus on our clients' main platforms so that the availability and appearance of our products is impeccable on websites and apps, the same as we are doing on stores, on brick and mortar stores. We also have a multichannel support network for B2B, which will be implemented by 2021. So we have the biggest physical presence in stores and our consultants are reaching 80 of points of sale, but we still have the potential to service the remaining 20% through digital tools and also by offering an omnichannel solution for clients who are only seen in person to date. We want that the 80,000 drugstores in Brazil can access the special promotions in our products portfolio through our representatives, through our call center or any of our digital platforms. We are looking at the digital transformation, which has been accelerated From 2019, we've created some areas in the company to be focused on these opportunities, such as digital and business innovation departments. With this and other initiatives in the company, we will be at the forefront and ready to take the opportunities that were created during the pandemic. Now to talk about our operational results. Our net revenue reached 1,800,000,000.0, a growth of 8% versus the 2020 or excuse me, 2019. This is the highest value ever recorded in a quarter since we started our operations exclusively for the pharma industry. This was boosted by the sellout performance, which grew 7.5% this quarter, reflecting an increased demand in drugstores due to the higher flexibility of the population movements. So this flexibilization of the quarantine has increased the number of doctor visits and foot traffic in drugstores, which has impacted our sellout. Generics have been our highlight with a two digit growth. And just as in the second quarter, this was boosted by our strong distribution platform, which includes all points of sale in Brazil. Prescription products have had their demand recovering in most business units. We had suffered a strong impact in the beginning of the pandemic, especially in April. And since May, we started seeing a gradual recovery in several categories. The main highlight was dermatology, chronic medications and vitamins, which continue to grow two digits versus last year. But the recovery has still been shy in some categories such as respiratory, orthopedic and pediatric drugs. These are categories that were more impacted by the slowdown in medical visits. In consumer health, vitamins and supplements have continued to grow strongly. They've been followed by sweetener brands such as Zero Cal, which have reached historical market shares. Influenza, where the company leads, had a strong drop in the third quarter just as it had suffered in the second quarter. Our expectation is that their impact will be smaller in the next months since this category has become less relevant in the fourth and in the first quarters. And we already see this behavior in the preliminary data from October. In this quarter, we've strengthened our absolute leadership in consumer health by acquiring the Buscopan brand family. This is a leading brand in the market. And with the conclusion of this acquisition, we've taken an important step for the company. These are strong brands that continue to grow and which will be used to extend lines with future launches in the category. And we have reinforced our VitaSai brand, and we have Adera Plus and three other brands. We also have Maracushima Mochi with a higher dosage. And we also have Blanche CP, a leading brand in skincare. Innovation continues to be the basis for our sustainable growth. This quarter, we invested over $90,000,000 in R and D, the highest amount ever invested in a company in this company in a quarter, And our innovation index reached 33%. We've accelerated our investments to expand our production capacity in Annapolis, and this is at the end stage of execution. Our expectation is to start producing vitamins and solids in the new production plants in December. From the 2021, we will probably see a significant increase in our capacity, which will help us with the growth we expect from the generics and similar area. This area is growing above the market, especially in a challenging macroeconomic scenario, which we will probably face in 2021. We continue to see innovation and increased production capacity without forgetting about profitability and returns on capital for our shareholders. This quarter, our EBITDA grew and even with the negative impact of the pandemic. Besides that, we also had record operational cash generation BRL $455,000,000. Before I give the floor to Adamario, I'd like to talk a bit about this sponsorship we will have for chemical rights with Neochemica Renda. We're going to invest millions of BRL for the next years and will be a great landmark for Neokimica. We'll have higher exposure during games and we'll also have visibility in stadiums. And that goes for Neokimica and other iBeta brands, which will have streaming rights for part of the stadium. But we have a higher expectation for this initiative than just exposing our brands. We see this as a great opportunity to have a closer relationship with our main stakeholders. Our goal is to locate, get to know and to have loyalty with the supporters of Corincios who already know Neuquimica and who have an emotional bond with the brand, starting with health care professionals. And then all consumers from Hipera, we want to get to know their habits and create a loyalty program for them by mapping, engaging and exploring any promotional opportunities we can have, focusing especially on selling new Kimica brands and in the future in other Ipera product lines. We have a dedicated team for this project. We'll start to implement this program in early twenty twenty one, and we hope to collect the results over the next five years. Now I'd like to give the floor to Adomaru, who's going to go into detail on the quarter's results. Thank you, Bruno. Good morning, everyone. So I'll go into details about the results this quarter, starting with sales and also expenses, and then we'll go into cash flow. Overall, we had a great performance, a growth of nearly 8% in gross and net revenue. Returns have been reduced this quarter versus the 2019, and we had a positive impact of the price readjustments of 5% in the second quarter, and volumes also grew by 33%. So growth is quite balanced between sell in and sell out. Growth this quarter was led by the good performance in a few categories, as Biren already mentioned, especially chronic disease products, vitamins and nutritional products, painkillers and dermatology products such as sunscreen as people are going back to their normal activities. And the generics portfolio has also increased by two digits led by an expressive growth in volume this quarter. The strong performance was partially impacted by, a part of the portfolio such as respiratory, pain and inflammation and pediatric products and also anti flu drugs because of, COVID. There was a strong deceleration when we compare it to the 2019. We start to see some recovery in parts of the portfolio as most, doctors are still not having enough, visits, but, flu and allergy drugs should return to their levels in 2021. This quarter, we already start seeing the benefits from the acquisitions and integration of Buscopo, which has basically concluded its sales for this quarter. It was still shy because we only had one month of sales. And now for the next quarter, we should see the full contribution of the BuscoPa and BuscoFeng brands. Gross margins were at 64% this quarter, a drop of 3.5%. This was due to the cost of products sold and also a devaluation of 23% of the BRL versus the U. S. Dollar. We also had an impact from, MIPS because of a higher representation of generics, which was slightly offset by increased prices. Between the exchange impact and the mix, we had a drop of about 4% in gross margin, which was slightly offset by prices. This quarter, we continue to invest in R and D. We had an increase of nearly 45% in R and D as we are acquiring raw materials and hiring personnel, and we're also including new suppliers in our projects. Regarding expenses, we had higher efficiency in expenses with sales, a reduction in trips, a lower level of marketing expenses. There was a strong concentration in media campaigns for the anti flu portfolio launches in the third quarter last year. And this year, we saw a reduction in these campaigns. We also had a reduction of our participation in events, conferences, free samples and promotional materials. In the others line, we had a revenue of about BRL63 million. This included the Buskopan brand, which we had already discussed last quarter, and there were also additional fiscal credits. With that, we finished the quarter with the EBITDA margin above 36%, a growth of 32 versus the same period last year. And it's quite in line with the budget we had for this quarter. Financial results were impacted by lower cash position due to payments, from Buscopo and other bank expenses with fees and other operations carried out this quarter. The IR line has had a positive contribution, especially on, interest over owned capital this quarter and also the suspension in the state of Goias. With that, net revenue was BRL $350,000,000, and the total net profit, grew by 29%. Now looking at cash flow on Slide six. This quarter, we had a record cash generation in a single quarter, $465,000,000. Considering the variation between accounts receivable and suppliers, our working capital investment is still below the net revenue, an increase cash generation. So it was more efficient and covered CapEx investments of BRL 130,000,000 and a part of our R and D investments of BRL 50,000,000. We also had an acceleration of investments in CapEx because of the expansion works for Anapolis, which represented about 80% of our total CapEx. With that, we generated free cash flow of about R300 million. Regarding financing cash flow, we issued a new debenture of BRL 135,000,000 due, by 02/1926. So this was in line with our plan for the beginning of the year for the Takeda acquisition. In our operation, this is more than enough to pay for that acquisition, which should take place in late twenty twenty or early twenty twenty one. We also had a rollover of the financing plan at an attractive cost, excuse me, at an attractive, rate. And we also had income tax retained and we also had a new declaration of interest on own capital, which represents an increase of 15% versus the previous year. This is in line with our allocation strategy and our strategy to return capital to investors. At the end of the quarter, our gross debt was at 5,500,000,000.0, quite concentrated in our gross cash position. With that, we have a solid capital position, a very healthy balance even considering the amount spent with the Takeda acquisition. Our leverage will be around 2x net debt and pro form a EBITDA will continue in line with the portfolio acquired for next year. So that's all I have from my side. I believe we had a very solid result for this third quarter. We're very optimistic that the worst of this crisis is behind us. We're excited for the perspectives for the 2020, where we'll have the integration of the acquisitions we began, and we'll have a higher availability of products with the expansion in Annapolis and a lower impact from the pandemic on relevant categories in our portfolio. So I'll now give the floor to Bruno for his closing remarks. Thank you, Adam Mario. We see a gradual recovery in the pharma industry shown by our sellout. It indicates that really the worst from the pandemic was suffered in the second quarter. So we're optimistic on our operational performance for the fourth quarter and for 2021. This quarter, we took important steps to approve the Takeda brands with the Shentino brand being sold. We expect that important brands from Takeda will be included in our portfolio in early twenty twenty one and will contribute towards our net revenue, making Apera Pharma the biggest pharma company in Brazil. Our strong cash generation has allowed us to invest on our business. Our portfolio has leading brands. We have a strong innovation capacity. And at the same time, we are able to pay dividends for our shareholders and continue to analyze investment opportunities in the middle of long and long term, of course, keeping at a healthy debt level. We believe in the potential for the pharma industry to grow And Ipera is the best positioned company to capture opportunities in this market in the next five to ten years. Now let's continue with the questions and answer session. Thank you. Thank you. The floor is now open for questions from investors and analysts. Our first question comes from Mr. Robert from Bank of America. Thank you. Good morning, everyone, and congratulations on your results. Brenna, what is behind this major increase in R and D expenses? And can you tell us about your pipeline and what organic and inorganic opportunities you see? Secondly, what should we think about the marketing investments? Finally, I was very impressed at your SG and A cuts. How much of it is sustainable? Thank Thank you, Bob. Thank you for your questions. Starting with investments in R and D. Basically, have two changes. What's here in the P and L line is related to maintaining approvals. So it addresses new requirements from ANVISA. This quarter, we also had a higher r and d expense, which will continue to be higher because of the, production transfers to new areas. You know, when you transfer a production from one area to a different area, you have to go through an entire process and make sure that the new machines have the same efficiency as the previous ones and the same efficacy. So that also increased our expenses recently in R and D. There's a new resolution from Monvisa three forty eight that allowed companies in the pharma industry to accelerate their approval process because of the pandemic. So they can get new active principles quicker and new products approved. So we, along with several competitors, have made use of this opportunity to register new suppliers and avoid any supply chain ruptures since we nearly had one at the beginning of the year. So that accounts for the R and D expenses and the P and L line. So what we can capture from that is basically the new products portfolio, which is what we've been investing in focusing on the long term. So investments made now will only have results in two to three years as products get approved by ANVISA. So one point I'd like to highlight here is that our innovation index is quite high. A major part of our revenue comes from new launches. We know and we've said this in many occasions that this is the case. Growth comes from innovation. So that is something that we cannot avoid. And what we're investing in right now will bring us results in a couple of years. And the results we are getting now are from the investments we made two to three years ago. Regarding marketing expenses, they are now at around 18% to 19% of our revenue. We believe that for 2021, it should remain at that level. What we've done is try to, make these expenses more efficient. Media investments, for example, have grown, especially in digital media, which we believe has a better conversion rate. And this is an area where we can split investments across more brands in our portfolio. We can also gauge our conversion better in sales. As we invest in digital media, we have a much better defined target for consumers of a certain brand. So we've been trying to become more efficient, of course, in offline media. We've been negotiating with major channels, broadcast stations. So we've been trying to find more efficiency there. We are seeking opportunities which are more in line with our portfolios. Regarding the G and A cuts, I think this also includes some of the sales expenses we had in our past, such as marketing. We made a big effort now during or after the impact we suffered from the pandemic, And we tried to gain inefficiencies, especially with, marketing expenses. So SG and A, changed as a whole. We're working on our budget for next year, and we believe that some of these gains will be captured next year again. But what we've been trying to have is more efficiency, not necessarily reduce investments. But we want to reach a higher number of, for example, physicians when we talk about doctor's visits. Through this hybrid model, our goal was to see more physicians and not reduce the number of, staff members. Just as with other expenses related to marketing, I think that with the pandemic, the scenario has changed a bit. Conferences are being held online. We are able to have much higher efficiency in our investments. This is not related to the pandemic, but we're also working on having more efficiency in using free samples. So on the G and A and expenses as a whole, we also had cuts in traveling. So it's clear that we can do a lot of the work remotely through remote interactions. And I think this is here to stay. So next year, I think we will be more efficient with our expenses, and we'll be able to generate higher demands with the same investments. Thank you. That was very clear. Congratulations. Thank you, Bob. Our next question comes from Mr. Tobias from Citibank. Hi, Bruno. Good morning. Quick question. Can you give us an update on how negotiations are going? Is there anything you could tell us about that? Also, suffered an impact from the exchange and maybe you've started to recover on that side. So but how do you see margins? You. Hi, Tobias. Regarding any possible deals that the company might have with their authorities, as was said in other occasions, we are doing the best for the company and the best for our shareholders. But unfortunately, we don't have anything we can tell you about that. What we can say, and this is something we've said in other occasions, is that this will not impact the company's business. So when we talk about clients, suppliers, partners, this will not have any impact on our business. We are contributing to with our authorities, and our goal is to resolve this issue as quick as we can. But, unfortunately, I can't give you a time line. I can't give you a time frame. As for margins, Adomario will answer. Tobias, So with regards to gross margins, we have suffered an impact and a reduction since last year because of foreign exchange changes since the beginning of the year. We are basically seeing our margins recover gradually over time as we work with the new level with the new exchange rate. And for the next years, we'll probably have price readjustments that will offset the new exchange rates. For this year, we've already hedged for the fourth quarter. We had already hedged in the first half of the year for the rest of the year, and we're looking at the best level to start hedging for 2021. So this is something we're doing now as we plan the budget for 2021. So two things that will impact margins for the next years are acquisitions. So the products portfolio that we acquired has higher margins than the average in the company. So we should be working with higher margins next year. Gradually as we perform integrations and capture synergies, especially tax benefits and also the new products pipeline. Next year, we will start having a higher number of launches. And in many of them, we'll have higher margins than we have on average in the company, which should also increase margins for the next year and for the following years. Great. Thank you. Our next question comes from Mr. Joseph from JPMorgan. Good morning, everyone. Good morning, Thank you for taking my question. I'd like to understand a bit about what you're thinking about capturing synergies from Buscopan and Buscopo Feng. The acquisition will be concluded soon. So So I'd just like to understand what we should think about for the, synergy curve? And secondly, how is it going with regulators to approve Takeda assets? Should we consider that it will be completed by the end of the year? And finally, how do you see acute medications recovering? This is a relevant part of the portfolio that has taken a hit. So how do you think that will do over time? Thank you. About the synergies with Postgopum, basically, the integration process is over. We've already started to capture from the personnel we got from Beringi, which was very small. They've already been onboarded. So in terms of synergies and points of sale, we've already captured them. Point of sale activities and sales have already been included in our team from day one. I think the next step in terms of capturing synergies will be making production, internal. So one of the steps will be taken now in early twenty twenty one, and it will be completely internalized probably by the 2021. So that's when we will capture 100% of synergies and start 2022 with 100% of our synergies already captured. With regard to Takeda, while we're still going through the process to get everything approved by Kaji. A strong step was selling the Shin Chenon brand, which was an important step for the transaction to happen. And in terms of timing, we believe that it will probably be approved by early twenty twenty one, probably between January and February. But everything is running smoothly according to plan. And as for synergies, we start capturing them quickly as soon as we can internalize these productions and as soon as we are approved. And bringing the production into the company takes a longer time. We have many products, so it will take at least three years for all of the Takeda brands to be produced by us. You had asked about acute medications. We already see a slight improvement in, sellout there. This is happening as, you know, life goes back to normal here in Brazil. We're seeing more doctor's visits. Schools are starting to reopen. So, you know, kids are interacting and going back to normal. And they start getting sick again, going back to, the doctor again, and that is a relief for us. We see that there's a gradual recovery every month for, that part of the portfolio. It's important to mention that we might even have a better level than 2021. As we said, the performance for chronic, drugs have increased a lot. You know, as we had said, it was dropping in, late twenty eighteen to early twenty nineteen, and this has been reversed. So we have good expectations at this new level, This higher level for chronic, drugs will remain and acute drugs recover in the next month. So it could be that the new normal has an even higher sales level for the company. But we'll have to monitor and see how it's going for the next months. Great. Thank you, Bruno. The next question comes from Ms. Ihma Sgarz from Goldman Sachs. Hi, good morning. I'd just like to ask a bit about your competitive environment, both for generics and for similars. Obviously, we've seen a major increase in competition. We know that retail has become more competitive in the last years. So what do you think the current environment is like in that segment? Finally, on retail and the pharma industry, we're seeing many companies obviously reaching the capital market. Of course, this is the moment for them to expand. So I'd just like to know if that has changed anything about your, commercial teams or your, commercial dynamics. Thank you. Thank you, Irma. So to answer your first question on the generics market, The market there is still very dynamic. The category is growing more than, above the average, for a long time it has. So we believe it will continue on that same trend and we might even see that movement increasing in 2021. We know that the economy in Brazil was not as impacted than other regions, especially because government aid, which has now been reduced and will no longer be given. So with that, we believe that the macroeconomic scenario is still challenging and their generics and similars usually perform better. There's a trade down. So I think we are very well positioned for that to happen. We've been investing since 2019 in that. That was a bottleneck for the company in the past. And now if the demand does increase as we expect, we do have the capacity to meet the demand, which should take place in 2021. Recently, we have been able to gain market share in this category, especially through new launches. So our pipeline was focused on brand initially, especially for Buscopan. And now we start seeing a higher presence in our own pipeline and in the business development pipelines through partnerships. So we are now having a higher offer and higher capacity. So we believe that we are very well positioned to capture the growth that should come in the generics and similar segment. You had asked about, the retail in drugstores and how competitive it is. We see that our clients have more capital now, but we haven't seen the business changing. But we do see it with good eyes. For Ipera, it's very good as more players or as major players start having more stores with more points of sale, for us to be able to sell our product portfolio. So as soon as we conclude, the Takeda acquisition will be leaders in the pharma industry. So we see this with very good eyes. Thank you. Our next question comes from Mr. Caio from Morgan Stanley. Hi, everyone. Thank you for taking my question. I'd just like to understand what your gross margin gap is between your different segments. I'd also like to know if you've been able to gain gross margins in generics due to your higher efficiency? Thank you. Yes. Our portfolio, as you know, is diverse in the pharma industry. So we have a strong position in the high margin categories such as prescription products and over the counter products, but also products with lower margins such as generics. Similars are around the middle there. In the case of generics, especially generics, there's a great margin variation per molecule. And it depends on investors coming in and going out in several markets to be able for us to be able to work. And, you know, depending on what molecules are there, that affects our margins. The most important thing with generics is to have a good market coverage with the highest number of molecules possible and make use of the volatility we have in the market, which is normal. As competitors step in and out, we assess what margins we want to have in each molecule. But I think overall, we've been expanding our portfolio through our pipeline, as was said, and our goal is to increase our market coverage by 50%. And we hope to do that in the next years with new molecules. Great, everyone. Thank you. Thank you. The next question comes from Mr. Gustavo from Bradesco. Good morning, Bruno and hello, Mario. Thank you for taking my question. So I have two quick questions. First on marketing, especially television marketing. I'd like to know if you are going to invest more on that in the fourth quarter and how you're doing with your suppliers. For example, with Global, since you have a major contract, Do you see, you know, that you will pay less now and will you pay only what you use next year? Do you have any contracts so that you don't lose money there for not running anything on TV? You also mentioned that you had less expenses, variable expenses with sales. So maybe because of the pandemic, you're selling fewer products that have variable lines or was this due to a different factor? If you can answer that, please. Regarding media contracts for offline media and specifically television, we're still negotiating contracts for next year. So right now, we don't have anything really that we can share, but the negotiation we had this year was very good. We got a lot of visibility and we were able to capture, you know, the best spaces on know, the best time slots on TV and with the other TV stations we work with. So for next year, we're still negotiating, but we will continue to be strong on online and offline media. We usually negotiate these packages together, online and offline. We want to continue to invest, but also increase the percentage of what goes online. With regard to variable expenses, this quarter, we did have a reduction in, PPR and, premiums, what you call variable remuneration, and that was especially for our field staff and field representatives. But I think what had the biggest impact here were the contributions this quarter. We saw a reduction and a part of the reduction we had in the second quarter and the third quarter for Social Security contributions should return on the fourth quarter. So a part of the reduction we had from social security contributions will, return on the fourth quarter. Okay. Thank you. The next question comes from Mr. Gustavo from Itau BBA. Good morning, Bren, Lena, Adelmao. Thank you for taking my question. It will be very quick. I'd actually like to ask about, consumer health. You said it that vitamins were a positive highlight, but on the other hand, we saw a slower performance in anti flu medications. So I'd just like to know what is due to temperature, what is due to COVID, if you see this category becoming normalized in consumer health, especially in the fourth quarter, considering how relevant it is in your portfolio? Thank you. That was all. Hi, Gustavo. Thank you for your questions. I think right now, we are seeing many changes and it's very difficult to know what comes from each part. But we think that the main effect is the pandemic. With COVID, people are staying home or when they do go out, they're wearing masks. We're having less contact. People are walking less on the street. Circulation is lower. So I think that's the main factor. It's more important probably than temperature in terms of anti flu medication performance. As I said in the beginning, we see a reduction of the impact, in this quarter for a couple of reasons. First, people are walking more, they're going out more, and this portfolio is losing relevance now in the fourth and first quarters because of the summer. We're not in the seasonal, part of the year where people have the flu. But how will this market behave next year? It will really depend on how we're going to be doing by next winter with regards to social distancing and vaccines and so on. Assuming that things go back to normal, we think we have a strong growth potential for the category since 2020 won't be a relevant basis for comparison here In our budget, we're looking more towards 2020 excuse me, 2019, much more than having a comparison with 2020. Great. That was very clear. Thank you. The Q and A session is now closed. I would now like to give the floor to Mr. Bruno for his closing remarks. I'd like to thank you all for listening to today's call. And our Investor Relations team is available if you have any additional questions. So please do ask. Thank you, and have a good day.