Earnings Call: Q3 2024

Nov 8, 2024

Summary

Q3 adjusted EBITDA rose 17.8% YoY to BRL 187.6 million, and revenue grew 15.7%; insurance and credit/consortium led growth. Management expects momentum to continue while prioritizing debt, cash discipline, and selective M&A.

Good morning, everyone. Welcome to Wiz Co's earnings call on the results for the third quarter of 2024. Simultaneous translation is available by clicking on the globe icon, labeled Interpretation, located at the bottom bar of the screen. When you select it, choose your preferred language, Portuguese or English. English listeners can mute the original audio in Portuguese. Simply click on Mute Original Audio. After the presentation of these results, we will start the Q&A session. You can send your question using the Q&A icon of the platform, which will then be answered by the Wiz Co representatives present. If your question is not answered during this video conference, the investor relations team will contact you later to answer your questions. Before proceeding, we would like to clarify that any statements that may be made during this conference call regarding Wiz Co business prospects, projections, operating and financial targets, constitute beliefs and assumptions of the company's management, as well as information currently available to Wiz Co. Forward-looking statements are not guarantees of performance and involve risks, uncertainties, and assumptions as they refer to future events, and therefore depend on circumstances that may or may not occur. Investors and analysts should understand that general conditions, industry conditions, and other operating factors may affect Wiz Co's future results and may lead to results that differ materially from those expressed in such future conditions. Introducing the Wiz Co team, we have with us today Marcos Vinicius de Oliveira, CEO. Lucas Neves, CFO, and investor relations director, and João Resende, investor relations manager. I now give the floor to Mr. Marcos Vinicius, who will begin the presentation. Go ahead, sir. Good morning, everyone. Welcome to our earnings call with the results of the third quarter of 2024. Before I hand over to Lucas, I would like to share a brief message with you. We concluded another quarter of great achievements, and we are satisfied with our Wiz Co way of making things happen. If I had to choose just one word to represent our latest results, it would certainly be consistency. We know what needs to be done. We have expertise in how to do it. We have the right plan to guide us and the discipline to turn it into action and generate consistent results. This space is only maintained because we have some moving targets that we pursue quarter after quarter with great determination, generating value for our shareholders, strengthening proprietary technology, using a customer-centric approach, prudence in our short-term management, and achieving consistent long-term results and generating value for our shareholders. This is a quest that inspires us and guarantees figures such as those you will see throughout this presentation of results. To begin with, I would like to celebrate the incredible BRL 187 million in adjusted consolidated EBITDA, up 17.8% on the third quarter of last year. Our consolidated net profit was BRL 88.5 million, a performance 20.8% higher than the same period last year, while the parent company's net profit net income was BRL 50.2 million, an increase of 13% when compared to the third quarter of 2023. Disregarding the effect of impairment write-off of Polishop Seguros with a non-recurring impact of BRL 4.3 million, our parent company net income would have reached BRL 54 million. In the last nine months, our adjusted consolidated net income reached BRL 323.3 million, which means a growth of 28.9% compared to the same period of last year. In the same period, we grew by 25.7% in adjusted consolidated EBITDA, which represents a result of BRL 511.4 million. This is a significant result, marks a new all-time high in the first nine months of the year for both indicators. Achievements made while we grew organically, with no acquisitions since 2022 and a decreasing run-off. Although the Brazilian macroeconomic scenario presents challenges, we have shown resilience and flexibility to overcome adversities and build solid results. Even in a quarter in which the Selic rate rose again, we managed to deliver historic records in both our insurance and credit and consortium segments. In the insurance segment, we closed the quarter with an EBITDA of BRL 129.8 million, a result 33.4% higher than the same period last year and 7% higher than the second quarter of 2024, the last historical record we had. The good work is the result of the combined operational performance of our business units. It is worth highlighting the results of bancassurance leveraged by BMG Corretora, BRB Seguros, and Inter Seguros, which continued to expand its portfolio this quarter and reached the incredible mark of 3.4 million active contracts. Also, in the insurance segment this month, we published a notice to the market informing our investors of the operation that formalized the exercise of the call option by Wiz on shares representing 9% of the share capital of BMG Corretora. These action positions with 49% of the business unit's share capital, and does not change at all the company's governance. We remain steadfast in our aim to expand and diversify our operations and generate value for our shareholders. In credit and consortium, we saw Promotiva and Wiz Parceiros perform strongly to deliver an EBITDA of BRL 28.3 million, a record result so far, surpassing the same period last year by 49%. We know that this consistency is only possible because we have solid processes and a fair, effective governance system that is practiced on a day-to-day basis in our company. Last quarter, we implemented the governance month in all of Wiz Co subsidiaries, and we brought together Wizards and important market partners to discuss the topic at the event called Governance in Action: Strengthening Values and Building Sustainable Futures, where we analyzed everything we have already built, and we focused on where we want to go in terms of compliance and organizational culture. At the end of this meeting, I was full of pride because it was a meeting dedicated to our non-negotiable values, and I was certain that we were on the right track. Another piece of good news that reinforces our commitment to excellence and the group's continued growth is that we have been ranked among the largest companies in the country according to Valor Econômico Ranking 1,000 and Exame Ranking Biggest and Best. According to the latest ranking, we are also among the 50 largest companies in the Brazilian insurance market. Achievements like these are only possible in a dynamic business environment where synergies and innovation are constantly encouraged. As far as innovation is concerned, we remain focused on connecting with the market of the future through our technological platform, Wiz Pro. Comprised of sales, management, operations, and engagement modules, we developed new features in all these fronts over the last quarter. There are now six business units using the tool in their commercial day-to-day work. We are in the final stretch of the year, and we feel very confident that we will close 2024 with plenty of reasons to celebrate. We will keep our guard up in short-term management activities and will be assertive in the company's cash management. We have the recipe to make this year a period of great achievements. I must send my deepest thanks to every Wizard who helped us build these beautiful results. They are an indispensable factor in the recipe I mentioned before. The strength and passion of each one of you is what drives us. I would also like to extend my thanks to the members of our board of directors and committees who continue to reinforce the decisions made by the statutory board of Wiz Co. Thank you very much. I will hand over to our CFO and Investor Relations Director, Lucas Neves, who will continue his analysis of the results of the period. Lucas, go ahead. Thank you, Marcus. Good morning, everyone. I am going to start the financial presentation on slide 3, where I will talk about the main events and operational and strategic highlights in the period. Let's start by highlighting the ongoing advances in our proprietary digital platform, Wiz Pro. Our commitment to strategic investments in technology strengthens our competitive advantages, guaranteeing the flexibility and speed required for increasingly robust results in our distribution channels. During this period, we developed new features in the three modules that make up the tool: sales, management, and operations. The solution is now part of the commercial routine of six of the group's units, Paraná Seguros, Promotiva, Omni 1, Wiz Concept, Wiz Conseg, and Wiz Parceiros. In the sales module, we refined the margin consultation processes and evolved in the product catalog, portfolio management, and assisted sales by making payment links available by email and WhatsApp. On the management front, we improved sales force administration. Finally, in operations, we delivered the omnichannel service module, created automatic flows for renewals, and made progress in accreditation structures. Moving forward, we would like to highlight the conclusion of the operation that formalized with the exercise of the option to buy 9% of BMG Corretora's share capital. With this action, Wiz now owns 49% of the business unit. This operation does not result in any change in the BMG Corretora's governance and is in line with Wiz's vision of growth in the context of expanding and diversifying its business unit, especially in channels with high profitability potential through the sale of insurance and financial products, exploited with our know-how and expertise. Continuing with the highlights, the period was also marked by the record issuance of BRL 938 million in insurance premiums, 22% higher than the same period in 2023. This milestone is yet another reflection of the consistent delivery of results and reinforces the robustness of the Wiz group. Finally, we would like to highlight another record-breaking quarter for Inter Seguros. The unit now has 3.4 million customers in its portfolio, once again reinforcing its leading positions in digital insurance product sales operations in the country. The result is 115% higher than the same period last year and 32% higher than the second quarter of 2024. It is also worth highlighting, among the unit's records, the historic achievement of BRL 24.4 million in net income, a result that is 50% higher than the third quarter of 2023. Now, moving to slide four, we present the financial highlights of the third quarter of 2024. We posted BRL 265.3 million in net revenue, up 15.7% on the same period last year. Excluding the net revenue from Caixa run-off, there was BRL 215 million in revenue, 21.1% higher than in the third quarter of 2023. This growth was mainly driven by the performance of the insurance segment, with a 24.6% increase in revenue, as well as the credit and consortium segment, which had growth of 27.6% versus the third quarter of 2023. It is also worth mentioning the adjusted consolidated EBITDA of BRL 187.6 million in the period, up 17.8% vis-à-vis the same period in 2023. Adjusted consolidated net income reached BRL 120.8 million, a result 12.6% higher than the same period in 2023. Moving on to slide six, here is a summary of our consolidated results. In the third quarter of 2024, we reached an EBITDA of BRL 187.6 million, 17.8% higher than the third quarter of 2023 as a result of the good commercial performance of our business units and our focus on operational efficiency. Now, consolidated net income. We had growth of 20.8% vis-à-vis the same period of last year, driven mainly by good operating results. The parent company's net income attributable to controlling shareholders reached BRL 50.2 million in the third quarter of 2024, 12.7% higher than in the same period of last year, with an expansion of BRL 5.6 million. Moving on to slide seven, we can see the effects considered for our adjusted perspective. In this quarter, we made no adjustments to EBITDA, presenting only the adjustments made in the first quarter of 2023 related to severance costs. In net income, we adjusted the non-recurring effects with no impact on cash that occurred in the lines below EBITDA. We would like to highlight the adjustments to depreciation and amortization, which amounted to a BRL 36.6 million rise in the period in expenses with amortization of intangible assets recognized with the acquisitions of BRB Seguros, Promotiva, and other business units, and also an adjustment of BRL 8.6 million recorded for the impairment partial write-off of the intangible asset in the subsidiary Polishop Seguros, which represents 50.5% of the balance of the asset. In the financial result, we adjusted the effects of the adjustments to present value, AVP, of the future installments of the acquisition costs of the company's investees, as well as the adjustments for inflation of the accounts payable for acquisitions. In income tax and social contribution, the amounts posted refer to the tax effects of the adjustments made to the depreciation and amortization and impairment lines and financial result lines. Therefore, we ended the quarter with an adjusted net income of BRL 120.8 million, a result 12.6% higher than in the third quarter of 2023, with a year-to-date total of BRL 323.3 million, 29% higher than the same period in 2023. Moving on to slide 8, we assess the breakdown of the parent company's result. In the third quarter of 2024, the parent company recorded BRL 75.4 million in EBITDA, down 2.4% compared to the same period in 2023. The result was mainly impacted by the reduction in net commission revenue from the run-off of the Rede Caixa operation. The record commercial performance in several of the company's business units boosted the equity line. In this line, the parent company recorded BRL 47.7 million, a result 30.6% higher than that presented in the third quarter of 2023, due to the better performance in participation in the results of the subsidiaries as a counterpart to the recognition of equity in the realization of identifiable assets previously recognized in depreciation and amortization, having been reclassified to the MEP line as of the fourth quarter of 2023. In net income, the parent company reached BRL 50.2 million in the third quarter of 2024, representing a growth of 12.7%. This performance was driven by an improved financial result, mainly due to the reduction in financial expenses related to monetary restatements on acquisitions, and by the good commercial performance of the company's business units. Now on slide 10, we begin the presentation of results opened by segment. The reconciliation of the result by segment and the consolidated results can be found in the appendix to this presentation, and also in the earnings release document. In the first half of the year, 80% of the net revenue came from our current operations. The business units consolidated by Wiz in the insurance segment accounted for 56% of our current results. We continue to see a strong movement towards diversification of results, coupled with a continued revenue growth. This performance was only possible due to our focus on delivering the company's strategic objectives. On slide 11, we continue to present the operating performance of our segments. Starting with the insurance segment, we reached, in this quarter, BRL 151.2 million in net commission revenue, an increase of 24.6% compared to the same period last year. This performance was the result of yet another quarter of a record commercial performance in some of the segment's units. In particular, BMG Corretora, up 34.1% on the previous year. Wiz Corporate, up 28.6% in gross revenue. BRB Seguros, up 24.7% in ex commission revenue. Also noteworthy mentioning the performance of the Inter Seguros, which achieved another record quarter in a row, reaching BRL 44.8 million in net revenue, a growth of 45.9% vis-à-vis the third quarter of 2023, registering BRL 9.7 million in equity for Wiz in the period. Now, moving to slide 12, we will present the units that distribute consortia and credit, Promotiva and Wiz Parceiros. In the quarter, we reached BRL 42.4 million in the net commission revenue in the credit and consortia segment, up 27.6% on the same period last year, and an EBITDA of BRL 28.3 million, up 49% on the third quarter of 2023. This result reflects the good performance of the Promotiva's operation, reaching BRL 32 million in net commission revenue in the quarter, hitting a new milestone of the unit's highest ever revenue. Wiz Parceiros reached a net commission revenue of BRL 10.4 million in the third quarter of 2024, 3.2% higher than the third quarter of 2023, and reached the issue of BRL 2.8 billion in credit and consortium letters, 108.4% higher than the same period last year, as a result of the Acelera Porto commercial campaign, which had a strong influence on that performance level. On slide 13, we present the services segment made up of the Wiz Concept unit and the Rede Caixa run-off operation. In the third quarter of 2024, the services segment saw a 4.3% drop in net commission revenue compared to the same period of 2023. The unit remains focused on the profitability of the business and ended the period with an EBITDA of BRL 4 million, 10.8% higher than the third quarter of 2023, expanding its EBITDA margin by 2.3 percentage points, reaching 17.2% in the period. Finally, with regards to the Rede Caixa run-off, we present the result of the inventory of revenues related to the sales made up to February 14, 2021. In the quarter, this line added BRL 46.3 million in EBITDA to the company, a result 2.1% down on third quarter of 2023 due to the 2.9% decrease in the revenue from the operation. Now moving to slide 14, I would like to highlight the main points about the corporate results and below the EBITDA line. In the third quarter of 2024, the lines below EBITDA showed an increase in depreciation, amortization, and impairment of BRL 10.5 million, mainly due to the partial write-off of the intangible asset impairment of the subsidiary, Polishop Seguros, in the amount of BRL 8.6 million. This write-off, carried out in the third quarter of 2024, represents 50.5% of the current balance of the asset, which had been granted in the amount of BRL 14 million to be amortized over the exclusivity period. We posted a financial result of minus BRL 14 million, with an improvement of BRL 9.1 in relation to the third quarter of 2023 due to the reduction in the financial expense of the adjustment for inflation of accounts payable for acquisitions for the settlements in 2024, totaling BRL 9.3 million. Finally, our CSLL expenses in the period grew by BRL 11.7 million compared to the same period last year due to a better operating result in the quarter. In the third quarter of 2024, we recorded an effective rate of 34.7%, mainly due to the effect of expenses that are not deductible for the purposes of calculating IRPJ and CSLL, such as adjustment to present value and capital losses. Now moving to our last slide 15, we present a composition of our cash flow in the quarter. In investments, the flow of BRL 10.5 million refers mainly to the adjustment to present value, AVP, of the acquisitions made by the company. In financing, the flow of BRL 87.3 million refers mainly to, one, the payment of the sixth installment of interest of the company's first issue of the debêntures in the amount of BRL 14.7 million. Two, the payment of BRL 10.9 million in interest and amortization of principal of loans contracted by the company and its subsidiaries. And three, the payment of BRL 69.7 million in interest and principal on the loan entered into the shareholders of the company's controlling block, according to the material fact published on February 2, 2024. Finally, in the quarter, BRL 44.7 million was paid in dividends to non-controlling shareholders of our subsidiaries. Therefore, we ended the quarter with a consolidated cash balance of BRL 250.4 million and BRL 39 million in cash at the parent company. That concludes our presentation, and we will now begin the question and answer session. Thank you. Thank you. I will now turn over to João Resende, who will start the Q&A session. I would like to remind you that you can send your question using the Q&A icon on the platform, which will then be answered by the Wiz Co representatives present. João, please go ahead. Good morning. It is a pleasure to have you here in our Q&A session. We have some questions here. Let me start with the question posted by William Varengard from Itaú BBA. William is congratulating us for these solid results, and he asks about the operating performance of our main business units. He reminds us that the growth of revenue, excluding commissions, was over 20%. He is asking whether this pace will continue. What about the main factors that have driven such growth? Thank you, William, for your question. I will start answering this question by saying that we understand that indeed, we expect to be in this growth path. We expect to keep growing at a fast pace to optimize the profitability of our business. Another important point is that we will keep on strengthening our competitive advantages through proprietary technology, such as our Wiz Pro platform. Another important point is that we have countless paths of opportunity, avenues of opportunity we can tap into with our channels, the channels we already have, including the ones mentioned by William. So we see opportunities in new products, improvements in the current journeys, and advancements in penetration in different areas. Another important point that is worth mentioning is that we also see the commitment of all these companies we partner with so that we can keep improving our insurance results. Although the Selic rate is increasing, we see the willingness of these business units in partnership with these companies to continue in a path of growth. So we feel comfortable with that. Lucas, would you like to keep commenting on William's question. Well, I would just like to first thank the Wiz Co team. We had solid results in this quarter. Almost all of our business units had a strong growth, which consolidates the work we've been doing. I do not want to take too long in my answer, but I think that each business unit has its own dynamics. So BMG, for example. BMG insurance teams worked very strongly to work on eligibility. Bmg Med was also a product they launched that had good performance. We also had good results in the lenders, so insurance products. This is not just because of the increase in origination, but also because the team worked very strongly to increase penetration and launch new products. BRB Seguros also improved in terms of origination average ticket. They also launched new products. We see similar things happening there. Promotiva, for example, their operation has been very successful in increasing the number of partnerships, its strategies. Banco do Brasil improved the business that it had, so now we can expand our network of regional agreements and also increasing the number of partners we work with. This is a highlight for Promotiva. Now, talking specifically, you asked about Corporate and Inter. There is another question related to Inter, and I do not want to repeat myself, so I will answer that later. As to Corporate, there are also different actions there, and I think that one highlight is Corporate's ability to deliver tailor-made solution consulting services, very complex services in what we call wholesale bancassurance. Lucas, I would like to ask you to answer William Varengard's second question. He asked about the improvements we had in our financial results, whether we will keep the same levels of this quarter or more similar to other quarters. Objectively speaking, we are de-leveraging the company, as you can see in the figures you presented. There is some variation in our financial results because although we had swap in some of our loans, we have some mark-to-market that sometimes make differences in our results in mark-to-market. I think it will range between BRL 14 million and BRL 20 million in financial expenses, which will be something between what we achieved in the second and the third quarter. Okay, now we have another question of Vitor Mendes, an investor. He congratulates the company for their results, that he was really impressed with the results of the Interbank, and he would like to know whether the strong growth rate is reflected in the results of the broker company we are partnered with. Thank you for your question. Let me bring you the figures first. Inter Seguros posted a BRL 64 million result year to date, and Wiz owns 40% of this operation. So about BRL 25 million is what we call equity equivalent in the Inter Seguros operation. I think there are two highlights here. The Interbank itself is growing a lot its operation. The profits of the bank also is increasing a lot, its different lines of credit, and the broker company benefits a lot from that. I think that we have good value proposition there, and the product journey is also very good. So we are able to add life insurance in a very smart way, offer consortium products that are also part of the bank portfolio. So adding up the good moment that this channel is going through and also a good focus by providing products that are easy to work with through an app. I think that this is what justifies these good results we have had at Inter Seguros in there. We do not think that this is a mature operation. There is yet a lot to come, and that is the impression we have when we talk to the insurance broker team. Ricardo Buchpiguel from BTG Pactual has two questions. In the first one, he reminds that the company's leverage is dropping this quarter. He said that we made the prepayment of the loan with a controlling block, which reinforces the need to extend our indebtedness because of the lack of liquidity in the short term. With this heated market, should we wait to roll out this debt this year or just wait for next year? What will be the dividends payment if this debt is expanded? Thank you for your question. Let me answer that in steps. First, I think that my main priority this year is to take care of our capital structure, especially when you consider the rollover of the debêntures, not just lengthening the debt. I think there are two factors that are combined that we want to expedite this process through that. The net income of Wiz is 45% higher than last year, and our debt market is heated up. I think this is a good moment for us to provide something good for the company and to do that in the long term. The short term. Also, he asked about dividends payment and rebuy of actions. Well, this is a financial question. What is the best way we can allocate this capital surplus of the company? I think first, the capital structure should be fine. That relates to your first question. We also need to see the flow to pay the obligations we have in the company. When we see the size of the debt loan versus our size, it has more to do with the profile of the payment due dates, rather than the size of it. As a second question to that, how can I allocate capital to generate as much value as possible to investors? If there is an acquisition that could bring us value, we can analyze that. If the return rate does not make sense, we can analyze the possibility of a share buyback program, and also make changes to dividend payment. We need to finish our homework, analyzing the capital structure, and only then we can make these decisions related to operating capital. Also, we have another question of Pedro Calisto that is aligned with some of the answers you already gave, but about the continuous drop in the company's indebtedness. So what can we expect in terms of financial expenses in the following quarters? He is also asking about the future of the cash of the company. I have covered that in a previous answer, and we talked about that in our last call. We are constantly looking for opportunities in M&A. These results of this quarter is capturing value, but also generating value to our partners, to our banks, and the operations that we have. This is part of our business to assess market and the market opportunities. We need to be prudent. Our capital cost is going up because the Selic rate is going up. So we need to give return and above the capital cost. In terms of execution of M&A margins, we need to be very cautious in choosing them to making sure that we generate value and that we have very good cases of value generation. Evandro Medeiros from Suno asks about Promotiva. He's saying that it's reaching a good space in terms of origination of Banco do Brasil, and there is a true alignment, apparently, between the bank and Promotiva. He asked us to comment on the scenarios and impact if Promotiva's contract is not renewed because it will end in 3 years' time. Let me address that first. Maybe Marcus Vinicius has something to say, too. We want to generate value to the bank and bank correspondents. The more value we generate, the better our negotiations will be to renew this contract in 3 years. We are very pleased with it, and we believe that there is a very relevant agenda in terms of what we want to do with this channel, whether it is expanding the network in terms of bank correspondents, maybe specific solution for portability, maybe also selling embedded insurance or maybe a combined insurance sell. Also increasing sales in terms of consortium. Making the best of this experience in other channels. The more we can build in this agenda, the more bank correspondents we'll get, the better it'll be for the chain and for the bank. I think that consequently, we can renew this more easily. I'd just like to add to what you said. In addition to what you mentioned about Promotiva, our journey is already on a way, using our technology tool Wiz Pro that gives us more opportunities in terms of margins, payment of commissions, and other types of features that are already part and running at Promotiva. This also shows the value proposition that we bring through our participation with the bank, and this is why this possibility of being in this channel is possible and doing a good job. Marcus, I'd like to take the opportunity that you're here. Rafael Almeida, a Wiz investor, asked whether there are perspectives of investments in new businesses in the short term. Thank you for your question, Rafael. The latest inorganic acquisition we made happened in December 2022, Promotiva, back in 2022. We had a cash position, so getting dividends from subsidiaries puts us in a place where we can deleverage our business very well and to resume our inorganic growth. Our net debt reached BRL 447 million in the third quarter of 2024, and that means a BRL 168 million drop vis-à-vis the third quarter of 2023. We have an EBITDA of participation, just as a reference, where we see a reduction in leverage. Almost 1 time the EBITDA. This means that we have at hand the possibility of resuming inorganic growth. Of course, this transaction will take place if the assessed target is synergistic with the company's growth strategy and if the conditions is compatible to the capital cost of our company. We have a pipeline today of about 30 to 40 opportunities that focus mainly on bancassurance, and that will be a good fit. And those will be good opportunities in terms of value proposition to grow the business. I wouldn't say that this is ready to take place, but we have mapped some opportunities in the ideal timing and conditions. Of course, we can implement them. Thank you, Marcus, for your answer. I have a question from Vanderlei Silva from Sigma. He would like to know what we can expect from Wiz in terms of payout. Vanderlei? Vanderlei. Yes. Thank you for your question, Vanderlei. Just reinforcing a point that we'd always like to address, we've always paid dividends. We like to have these actual metrics, so part of the profit is distributed to our shareholders. This is healthy for our business. One point we'd like to reinforce is that we reduced our payout levels last year, one year ago, to retain more rates at the company and to deleverage the company. Now, one year later, we see the effect of this initiative we implemented a year ago. We had a substantial reduction of the net debt of the company, and we can do a lot with this capital. The first important point is, if the net income is growing by 45%, wherever the payout is, we are increasing dividend distribution anyway. The second point I'd like to highlight is that a capital cost structure that is more efficient allows us to, again, use M&A in business that makes sense, analyzing share buyback programs, and also a way of returning this investment to make the cash that is in the company to make more money than its capital costs, and one way to do that is giving it back to shareholders. But this does not change the fact that we are increasing our net income a lot in the controlling company, which will translate into more dividends to the company. Thank you, Lucas. Now we have a question from Jamar Filio, an investor. He congratulates Wiz for its results. He would like to know what is the Caixa run-off participation regarding the parent company income. Run-off accounts for about 20% of the net revenue of the company. When you look at EBITDA, and I'll use that EBITDA by participation in this example, it will be less than half of our business. Just for you to understand how much we need to. This is a smaller point in our company, because most of the operations keep growing year over year. We are reaching now the last question. That's Leonardo Roma's question. Again, an investor who also congratulates Wiz for the results, and he would like to know about the partnership with Polishop. Just to give you some context, Wiz purchased part of the insurance company Polishop had, and the Polishop operation was significantly reduced since that acquisition. They reduced the number of stores by half since we purchased that operation. Over the past quarters, the company has reduced its expectations of return that we had. This only reinforces how the Wiz results are strong. Let me give you one example. This quarter, we posted BRL 50 million of net income, and we made a partial write-off of the Polishop investment that had a BRL 4 million impact. As we reduce that over the year, this expense will no longer exist. The current results, excluding this write-off of Polishop, would have been BRL 54 million. We still had a good growth in spite of this write-off, so maybe this balance is going to be a little bit lower in the future. As we mentioned today, before, although this was an investment that did not give return as we expected, it was a small investment in our portfolio. When you look at the whole composition and the basket of investments we had, we see more benefits than loss. Well, there are no further questions, so now we are moving to the end of our Q&A session. I would like to thank you for your participation. The investor relations office is at your service, and I would like to now conclude this meeting. Thank you for your attention. This concludes the Wiz Co earnings call. Thank you for your participation. We wish you a good day.