Good day, ladies and gentlemen, and welcome to the Enel Américas second quarter and first half 2025 results conference call. My name is Victor, and I'll be your operator for today. This presentation contains statements that could constitute forward-looking statements. These statements appear in a number of places in this presentation, and included statements regarding the intent, belief, or current expectations of Enel Américas and its management with respect to, among other things, Enel Américas business plans, Enel Américas cost reduction plans, trends affecting Enel Américas financial condition or results of operations, including market trends in electricity sector of Chile or elsewhere, supervision of regulation of the electricity sector in Chile or elsewhere, and the future effect of any changes in the laws and regulations applicable to Enel Américas or its subsidiaries.
Such forward-looking statements reflect only our current expectations, are not guarantees of future performance, and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity, in the equity capital markets, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere, and other factors described in Enel Américas integrated annual report. Readers are cautioned not to place undue reliance on those forward-looking statements, which stay only as of their dates. Enel Américas undertakes no obligation to release publicly the result of any revisions to these forward-looking statements except as required by law. I would now like to turn the presentation over to Mr. Jorge Velis, Enel Américas Head of Investor Relations. Please go ahead.
Thank you. Good afternoon, ladies and gentlemen, and welcome to our second quarter 2025 results presentation. I'm Jorge Veliz, Head of Investor Relations of Enel Américas. Before we begin our presentation, let me remind you that on July 1st, Giuseppe Turchiarelli was appointed as our new CEO, replacing Aurelio Bustilho. We would like to thank Aurelio for his commitment and contribution to our company, and welcome and congratulate Giuseppe on this new challenge. In the coming slides, Giuseppe and our CFO, Rafael de la Haza, will be presenting the main figures of this period. Let me remind you that this presentation will follow the slides that have already been uploaded in the company's website. Following the presentation, we will have the Q&A session. If you want to make a question, please send it through the webcast or write us to our corporate email, ir.enelamericas@enel.com.
Now, let me hand over the call to Giuseppe, who will start by outlining the main highlights of the period in slide number three.
Thank you, Jorge. During the second quarter of 2025, we had an important increase in investment in grid business of 26%, isolating the currency devaluation impact. This reflects our commitment to our customers to improve service quality and to be a more resilient company. In generation, we increased by 5% our production, mainly explained by higher renewable capacity and better hydro condition in Colombia and Central America. EBITDA in this quarter reached $1.06 billion. If we isolate the impact coming from currency devaluation, EBITDA reached $1.16 billion, which is 17% higher than the same period of last year, mainly explained by better results in distribution in Argentina and Brazil, and generation in Colombia and Central America.
Thanks to the deployment of the funds that we received from the sale of Peruvian assets, we have been able to reduce our debt levels, and financial expense decreased by 37% this quarter compared to the second quarter of 2024. Finally, let me highlight that as of this quarter, due to the accounting reasons, our operations in Peru are no longer considered discontinued operations, meaning that its results are included in the operational part of our financial statements. Before going into the details of our operational and financial performance of the period, I would like to present an update of the regulatory topics that we are facing this year in slide four. During 2025 occurred several regulatory news in our region.
Beginning with Argentina, on June 30, we signed an agreement with CAMMESA and the Secretariat of Energy regarding the settlement of our outstanding debt of EDESUR with CAMMESA. This agreement sets the timing and amount to be paid, improving the previous condition in terms of offering a payment plan of up to 72 installments, giving a 12-month grace period, applying a lower interest rate, and changing the indexation of part of our debt from energy price to interest rate. This agreement allow us to recognize a positive impact of $99 million at EBITDA level and $59 million at net income level. This, along with the tariff review completed on May 1, allow us to have a better visibility on results for the coming year. Also in Argentina, Enel Chocón current contract expired in August 11, and we are waiting for the standard condition to be published.
Also, we are closely following the potential sector reform that is, at this moment, in early discussions, and among other things, is proposing the possibility of signing bilateral energy contract and assign a minimum contract level for distribution companies. Moving to Brazil, the concession renewal process is moving ahead with some delay regarding the original timing. For Enel Rio, Enel technical team has already issued a favorable report confirming full compliance with all legal, regulatory, and operational requirements. For Enel Ceará, Enel São Paulo, we still don't have official news, but we are confident that despite the delay, the process is moving ahead as expected. In Brazil, we are also following a sector reform that is under discussion. The key pillar of this reform are tariff justice, market liberalization, and sector balance reviewing subsidies for the new renewable generation. We expect to have news about this in the coming months.
Finally, in Colombia, the commercialization tariff revision process is moving ahead. While the distribution tariff process, the new guidance for the process were published in July 25 and are open for comment until September, acting as the first assessment step for the process. In generation business, a law project draft that caps at 5% the energy sales of hydro projects in the spot market is under discussion. Now, let's analyze our investments in the fields in the coming slides. During the second quarter of the year, our CapEx increased by 5% compared to the same period of the last year, reaching $739 million. This is mainly explained by higher CapEx in Grids, in Brazil, and Argentina, and in generation in Colombia. 52% of the total investment were devoted to Brazil and 35% to Colombia.
We see that Argentina is becoming more relevant in terms of investment, with 15% of the total investment. In terms of business line, 72% of the total CapEx was allocated to Grids and 27% to generation. Regarding Grids CapEx, this quarter grew by 16%, and investment devoted to the network of Grids increased by 39% compared to the same period of last year. Let's now analyze Grids operational highlights in slide 6. Electricity distributed reached 26 terawatt-hours in the second quarter, basically flat compared to the same period of last year. This is explained by higher sales in Colombia and Argentina, offset by lower sales in Brazil. Regarding number of customers, we had an increase of 420,000 in the last twelve months, reaching 22.8 million customers.
Smart meter increased by 31%, reaching 1.7 million in this period, mainly due to the deployment in São Paulo. Net RAB and net RAB per customer increased 12% and 10% respectively, isolating the impact of the currency devaluation. This reflects the significant investment that we are doing in our network. In terms of quality indicator, we can see that SAIDI improving all subsidiaries except for EDESUR, while SAIFI show mixed results. Finally, regarding energy losses, we improve in Enel Ceará, and remain flat in Colombia and São Paulo, but increasing in Enel Rio and EDESUR. This is mainly consequence of higher temperature registered in the period and higher injected energy. Let's continue with generation operational highlights in slide 10. Installed capacity reached 12.9 GW in this period.
Compared to June 2024, capacity increased by 0.1 gigawatts due to higher renewable capacity in Brazil. Let me underline that 98% of our capacity is renewable. We're currently working on additional 0.5 gigawatts of capacity under construction. These are two solar projects located in Colombia, Guayepo III and Atlántico, which will be concluded between 2025 and 2026. Regarding energy balance, we can see that in this quarter, we increased our sales by 6%, reaching 17.6 terawatt-hour. From this, 10.6 terawatt-hour coming from our own production, and seven terawatt-hour coming from purchases to spot markets and third parties. The increase in sales is explained mainly by Brazil, and to a lower extent, Argentina and Colombia. Now, Rafael will comment on the financial results of the period in the coming slide.
Thank you, José. Buenas tardes a todos. EBITDA this quarter reached $1.06 billion, an increase of 7% compared to the second quarter of 2024. If we exclude the negative impact coming from the currency depreciation in Brazil, Colombia and Argentina, we get to an adjusted EBITDA of $1.16 billion, which is 17% higher when compared to the second quarter 2024. This result is mainly explained by better results generation in Colombia and Central America due to better hydro conditions, as already explained by Giuseppe, and higher tariff indexation in distribution in Argentina and Brazil. In addition to this, in Argentina, we have the already mentioned extraordinary impact for about $99 million coming from the agreement with CAMMESA, as already mentioned as well.
Adjusted net income reached $0.19 billion in this quarter, which is 172% higher when compared to the second quarter of last year. The increase is mainly explained by higher EBITDA and lower financial expenses. Funds from operations reached $0.59 billion, an improvement of around 42% compared to the same period of last year. This is mainly explained by lower financial expenses and lower tax rate when compared to the previous period. On slide 10, we will see this quarter's EBITDA evolution and breakdown. Starting from $995 million of EBITDA on the second quarter of 2024, we see that generation had an increase of $36 million, mainly explained by Colombia and Central America due to better hydro conditions.
Grids improved by $129 million, including the $99 million from the agreement with CAMMESA already mentioned. In addition to this, we have better results in Argentina and Brazil due to tariff adjustments. Customers, a slight decrease, while in others, we are considering around $10 million coming from the currency depreciation from the operations in Peru. With this, we get to an EBITDA of $1,164 million for the second quarter 2025, which represents 17% higher than the same period of 2024. FX has a negative impact of around $102 million, resulting in a reported EBITDA for this quarter of $1,061 million. From our reported EBITDA, 37% came from Brazil, 35% from Colombia, 13% from Argentina, and 4% from Central America.
In terms of business line, Grid represents 62% of our EBITDA, Generation 35%, and Customers contribute with 2% of the total. Let's analyze cumulative EBITDA breakdown in slide 11. For the first half of the year, we see that all our business lines have significant increases when compared to the previous year. Generation increased by $883 million, mainly due to better hydro conditions in Colombia and Central America. While Grid grew by $124 million as a consequence of better results in Argentina and the agreement with CAMMESA. In others, we are including our operations from Peru, which amounted to $16 million for this period.
With this, we get to an EBITDA of $2,305 million, which is 11% higher than the same period of 2024. FX has a negative impact of $226 million, resulting in a reported EBITDA for the first half of the year of $2,077 million, in line with the same period of 2024. From our reported EBITDA, 49% came from Brazil, 38% from Colombia, 8% from Argentina, and 5% from Central America. In terms of business line, Grid represents 60% of our EBITDA, Generation 37%, and Customers contribute with 2%. Now we will focus on the cash flow of our company in the following slide, which is slide number 12.
Starting from an EBITDA of $2.08 billion, we see that the net working capital of the company for this period amounted to -$0.55 billion, slightly higher than first half of 2024. Tax paid during the period amounted to $0.2 billion, a lower amount compared with the last year, and this is mainly explained by a lower taxable base in Colombia. While net financial expenses, that you see in the center of this chart, also improved, reaching $0.26 billion due to lower debt compared to the first half of 2024. With this, funds from operations amounted to $1.06 billion, which represents an amount significantly higher when compared to the same period of last year.
After investment, $0.95 billion, we get to a positive free cash flow, and this is very important, I underline this item, of around $120 billion. Let's now analyze the debt of our company in the following slide, which is slide number 13. Gross debt amounted to $5.9 billion, an increase of 13% compared to December 2024, and this is mainly explained by FX impact and higher growth in Brazil. Net debt reached $4.2 billion, an increase of 97% compared to the end of 2024. This includes positive free cash flow of $0.1 billion, as explained in the previous chart, in the previous slide. Net dividends paid for $0.8 billion.
Extraordinary operation for $0.9 billion, mainly related to the tax payments in Peru. I remind you that we paid more than $600 million for the capital gain that we obtained with the sales completed in Peru, in 2024. Due to the payment of the second installment of the pension fund in Enel São Paulo. FX, as you see in the right part of this chart, FX has a negative impact of around $0.4 billion. In terms of currency and country, we see that EBITDA Brazil remains as the largest contributor, while the debt at the holding level represents 10% of the total.
Finally, regarding the cost of the debt or the debt, we can see an increase for this period, moving from 10.3% - 11.1%, explained substantially by higher interest rates in Brazil. On the next slide, the final slide of this presentation, Giuseppe will conclude with some closing remarks. Giuseppe?
Thank you, Rafael. We continue focusing our investment in growth, aiming to improve our services quality for our customers. EBITDA improved mainly due to better results in distribution in Argentina and generation in Colombia. We continue improving our FFO, mainly due to lower financial expenses, and we keep a solid and flexible financial position, which allow us to execute our CapEx plan.
Well, thank you, Giuseppe and Rafael. Thank you for your attention, and now we will begin the Q&A session. First question coming from several analysts is regarding the concession renewal process in Brazil. If you can give us an update on how the situation is moving ahead.
Okay. For what concern Enel Rio, Enel has already issued a favorable technical report confirming compliance with legal, regulatory, and operational requirements, as I said during the presentation. Enel board meeting held on June 24, one of the directors requested a delay on the vote for further analysis. This simply introduced some uncertainty about the timing, but we don't have any kind of doubt in terms of the result. We remain confident in a positive outcome, subject to the board final votes and subsequent confirmation by the Minister of Mines and Energy. For what concern Enel Ceará, the renewal process has been assigned to a director, and it is currently under review by Enel technical team, which is also analyzing a quality improvement plan submitted as a part of the request.
For Enel São Paulo, the process has yet been assigned to a director.
Thank you, Giuseppe. The coming question, regarding generation business in Brazil, do we expect negative impact coming from poor hydrology and curtailment that we have seen during the year?
Well, regarding the generation outlook, the level of the reservoir in the southeast region currently stand at 64%. Basically it is in line with the level that we had in 2024. We have seen a slight reduction in hydrology in the last few months, but it is important to consider that the rainy season in Brazil begins in November. It's normal to have a reduction in the reservoir at this point. Regarding the curtailment, as of June 2025, Enel Renewables operation in Brazil has been impacted by the current curtailment volume of approximately 1.6 terawatt-hour, basically due to the transmission line availability that is clearly outside of our control. The estimated EBITDA impact for Enel Américas totals around $45 million year to date.
We are, in any case, working closely with the system operator and the CCEE, the Chamber of Electric Energy Commercialization, in order to address these bottlenecks and minimize the curtailment risk going forward. Additionally, we are working on potential recovery mechanisms through existing regulation or legal alternatives where applicable. In this context, the recent publication of the guidance PN 115 by Brazil's Ministry of Mines and Energy, which allows thermal power plants to voluntarily reduce inflexible dispatch during the surplus periods, is a positive signal. Once implemented, this measure could help release pressure on the transmission system, improving overall efficiency and potentially reducing short-term curtailment.
Thank you. Now moving to Argentina. We have received a couple of questions regarding the El Chocón bidding process.
Okay. Let me remind you that the El Chocón concession original term finished in August 2023, but has been extended since then, and now the expiration date is August 11 of this year. The Ministry of Energy is preparing the terms and conditions for a public tender, as well as for other major hydro plant like Cerros Colorados, Salicura, and others. As of today, the official bidding terms, including duration, remuneration scheme, and operational obligations, have not yet been published. Due to this, our current expectation is that the expiry date will be delayed until the terms and conditions for the public tender are published. We continue monitoring the situation and are prepared to assess our participation once the final conditions are released.
Thank you. In Argentina, now that there's greater clarity on the rules of the game, could EDESUR become a candidate for sale?
EDESUR continues to be a part of our company and is fully included in our 2025, 2027 strategic plan, which in a certain way anticipates the growing contribution from Argentina over the coming years. We are encouraged by the recent positive regulatory signs in the country's sector, including steps towards regulatory modernization. We are continuously evaluating all business segments as part of our portfolio management, but right now EDESUR is not currently under strategic review for disinvestment. We will continue to monitor the evolution of Argentine regulatory and economic landscape, but as of today, we remain committed to the operation and its role within the group.
Thank you. Going now to Peru.
Yeah.
Can you give us an update on the process of securing natural gas supplies for Enel Generación Piura?
Well, regarding the latest development, let me remind you that Peruvian government has recently awarded Lots I and VI, both currently in the license agreement signing phase. In both cases, we have initiated discussions to secure access to the gas, either through concession agreement or formal expression of interest. These lots are expected to become operational by October 2025, which should enhance gas availability and competition in the northern market.
Thank you. Now, another question from Andrew McCarthy. When do you expect to refine the group's future capital structure, given the company's current balance sheet leverage?
Well, thank you very much, Andrew, for your question. This is a very good question. Just to remind you, as I mentioned before, that following the divestment of our assets in Peru that we completed for both businesses, distribution and generation, Enel Américas entered 2025 with a strong financial position and low leverage and a relevant amount of cash that you know. This has provided the company with the flexibility needed to navigate key developments such as the distribution concession renewals in Brazil, as Giuseppe explained before, and tariff adjustments across the several countries in the region in which we operate.
The funds were used mainly to reduce expensive debts, mainly in Brazil, to capitalize our activities in Brazil to finance our CapEx needs for the following years, to reinforce the networks and to avoid new debt, taking into account the current level of interest rates in the country. As these regulatory and operational uncertainties are progressively resolved, we'll be in a better position to assess our outlook and potential decisions. Of course, this is something that we are periodically monitoring and evaluating. You saw in the previous slide when we commented the net debt that we'll more or less double the net debt of the company from December 2024 to the first half of 2025, the company remains close to 1x net debt to EBITDA.
It's a very solid, a very flexible financial situation. We expect to have a better clarity on this front during the second half of the year, but for the moment we think that is the right position. Thank you, Andrew.
Thank you. We'll move ahead with a question from Fernando González about PIS/COFINS. If the 10-year thesis is approved by the Federal Supreme Court on August 13, what would be the impact on your three distribution concessions in Brazil?
Okay. This is a very good question, Fernando. Thank you. Thank you very much. At this moment, at this stage, as you know, there are no material updates to report at this stage. The recovery process remains under administrative and judicial review at this moment. As you mentioned it correctly, the case is scheduled to be discussed by the Federal Supreme Court on August thirteenth. Regarding the constitutionality of a law which mandates the full transfer of PIS/COFINS tax credits related to ICMS exclusion to other issues is still under discussion. No news. Let's wait what is going to be decided mid-August. For the moment, this is the visibility that we have.
The potential impact on our distribution companies for sure are growing, particularly on the interpretation of the statute of limitations that is applicable to credit transfer. We continue monitoring the process closely and let's see what is going to happen, the next month.
Thank you. Rodrigo Mora, about Peru, how much tax did you pay to the Peruvian government on the sale of the assets?
Thank you, Rodrigo. Good question. Previously we commented, if I am correct, in page 13 as well, the total amount of taxes paid in 2025, due to the capital gain obtained in Peru with the sale of distribution and generation business. The amount that we paid for this year was around $600 million. To be precise, it was $590 million, taking into consideration the rate of the FX, Peruvian soles into dollars. The payment corresponds to the 2024 income tax, I repeat, to the sale of our businesses.
In addition to this, just to remind you, the total amount of the taxes paid in, we paid as well in 2024, a portion of the total taxes due, to the SUNAT, no? Making the total payment for this transaction, for the whole transaction, distribution, and generation, a total payment of around $640 million.
Moving to Colombia, also from Rodrigo Mora. Could you provide us with an update on the government decree that seeks to force hydroelectric plants to sell all their energy to regulated customers and not leave any energy available for sale on the spot market?
Okay. First of all, this draft decree that has been issued by the Ministry of Mines and Energy in April 2025. The target is to limit the spot market sale by other generation to a maximum of 5% of their output. Clearly, the measure is part of a broader public policy aimed to reducing the spot market volatility, especially during the periods in which we have a low hydrology, and encouraging long-term contracts in to enhance price stability. The proposal requires that at least 95% of the hydro generation has to be sold through contracts. ANEEL has submitted formal comments on the draft supporting the goal of greater stability, but raising concern about the measure effectiveness in addressing the root cause of volatility, and warning also about the potential to limit investment and undermine market freedom.
If you think about the direct impact for what concern our assets, Enel Colombia exposure is very limited, as vast majority of our generation is already sold through long-term bilateral contracts.
Okay, thank you. Regarding the guidance that we announced to the market, also from Rodrigo Mora and some other analysts are asking to know if you're going to update the results guidance for this year. At profit level, we see some difficulty to reach the figures that we presented in the plan.
Thank you, Rodrigo, and thank you, Javier Suarez, that is connected as well. I think that you have the same question at hand already. Well, as of today, we confirm the 2025 guidance communicated in the strategic plan of the company announced in November last year for the period of 2027. While we acknowledge the perplexing volatility and the macro environment has persisted in some of the core markets in which we are operating, no relevant extraordinary events for the moment have occurred that could warrant a revision of our outlook at this stage. I repeat, at this stage, we are confirming the guidance in both in terms of EBITDA and in terms of net income.
Our year-to-date performance remains aligned with internal expectations, and we are confident in our ability to meet the lower end of our full-year targets. We continue, of course, to monitor macroeconomic and regulatory developments closely. Based on the information available today, no justification for adjusting our guidance.
Thank you, Rafael. Now moving to Argentina. Could you explain the positive one-off in the agreement between EDESUR and CAMMESA? I'd like to understand whether the payment for the energy owed is through an additional charge to Cuadro Tarifario, meaning paid by consumers, or whether it would impact plan B, meaning the remuneration of the distribution company.
Yes. Yes. Thank you. Thank you very much. As mentioned during the presentation, on June thirtieth, EDESUR signed an agreement with the Secretariat of Energy and CAMMESA to restructure its outstanding commercial debt. This agreement sets terms and conditions for outstanding debt with the previous agreement, and improves the conditions of debts that are already under payment agreements. These agreements do not imply any additional tariff adjustment for consumers and the company. This is very important, okay? No additional tariff adjustments for consumers. This is just an impact in our balance sheet due to the agreement reached. That's it. As a result, Enel Américas recognizes a one-off positive impact that we have mentioned before of around $99 million at the EBITDA level and $59 million at the net income level in the second quarter of 2025.
A reduction in terms of net debt of around $100 million. This agreement, along with the tariff review implemented on May first, provides in Argentina better clarity and visibility over the sources of finance allowing for the coming years.
Thank you. Now, a question from Francisco Paz from Santander. First, excluding the asset disposals in Peru in 2024, what factors explain the net income performance?
Thank you, Francisco. Yes, as we show in page number nine, we are seeing a 172% increase in terms of net income for the second quarter of this year when compared to the same quarter in net income for both years. This is mainly explained by a better performance in Argentina, mainly the distribution business, which reported positive figures in this second quarter of 2025, compared to a loss that we registered in the second quarter 2024 due to the debt with CAMMESA in this period. This is the main difference.
One item that we, let me say, registered in the second quarter of 2024, but we do not see in this quarter in Argentina, and I repeat, a better performance in this country, particularly in the distribution business.
Thank you. Second question from Francisco: What actions take the company to be protected against FX impact in Brazil and Colombia?
Okay. Thank you, Francisco. Again, no news here. We have a natural hedge as we issue debt in the same currency of the cashflow generated in every country in which Enel Américas operates. This is a natural hedge, I repeat, and we are comfortable with this situation. In the case of the dividends, we hedge the dividends of each country to avoid the FX risk. This is a real hedging. Every year, we hedge the potential FX impact of the dividends, let me say, forecasted in the strategic plan of the company for every year, for the tenure, and we hedge those dividends to avoid the mentioned FX risks.
We operate in local currency in every country, so the impact in our results is only a conversion effect when we consolidate and when we translate the local currencies into dollars, which is the functional currency of Enel Américas here in Chile. No news here. Thank you.
Thank you, Rafa. Last question from Francisco: Could you give us an update on hydrology expectations for Colombia and Brazil for the rest of the year?
Yeah. For what concern Brazil, as I said before, the reservoir level are currently at 60%. In line with the last year. Rainy season, we said, begins around November, so probably the situation should improve by the end of the year. For the moment, we don't see any relevant risk regarding the hydrology in Brazil. For what concern Colombia, the reservoir level are above 80%, and the drought that we suffered last year is no longer an issue. We expect to maintain with a good hydrology level for the rest of the year.
Thank you, Giuseppe. We received another question from Fernando González about the agreement with CAMMESA. This $99 million impact is a one-off event, and is it all cash?
Well, thank you very much. Yes, it's a one-off event. At this moment, it's not a cash item. As I said before, this will reduce the level of net debt that we have due to the accumulated debt with CAMMESA in the past for around $100 million. This is the effect. No cash impact at this moment. This is something that we have in the future, but for this moment, it's a one non-recurrent item, let me say, with the impact that we have already mentioned, $99 million in terms of EBITDA and the impact that we have already mentioned in terms of net income.
Thank you. Question from Juan Felipe Becerra. Thank you for the presentation. Could you provide more color on the $91 million loss in impairment losses from IFRS related to the worsening in expected credit loss? What were the main drivers? Should we expect this level of impact to persist going forward?
Well, thank you, Juan Felipe. This is mainly explained by our Brazilian operations, particularly in the distribution companies of Rio de Janeiro and São Paulo, and we managed approximately $66 million. We are continuously monitoring performance and actively driving initiatives to improve the collection efficiency within these entities. That's it. Thank you.
Thank you, Rafael. It seems like we don't have any additional questions. We have covered all the topics. If anything is pending, please send us an email to investor relations email. As there are no more questions, I conclude the results conference call. Thank you for your attention.
Thank you. Have a great day.
Thank you.
Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.