Earnings Call: Q3 2024

Nov 15, 2024

Summary

Q3 profit rose nearly 62% YoY to CLP 57.8 billion, led by financial subsidiaries. RedSalud grew EBITDA and margin, while Consalud remained pressured by lower GES premiums and fewer beneficiaries.

Hello, everyone, and thank you for joining ILC third quarter 2024 results conference call. With me is Rosario Letelier, Chief Corporate Development Officer of ILC, and Gustavo Durana, Head of Investor Relations. Before starting, I would like to invite everyone to download from our website a presentation prepared especially for this conference call. The purpose of this document is to go through the main events and achievements for the period, as well as to explain the context and financial figures for each of our businesses. This call will be divided in five blocks. First, we will review the context for the period in order to continue with ILC's consolidated results for the third quarter of 2024. Then, we are going to analyze our subsidiaries' financial results and main highlights for the quarter. Afterwards, we will do an update regarding our financial position in order to close the call with a Q&A section. Now, I will turn the call over to Rosario in order to review the context for the period, ILC's 2024 milestones, and consolidated results for the third quarter of 2024. Hello, good morning, everyone. Going to slide five, we can see the macroeconomic context for the third quarter of 2024. On the top left chart, we can see the returns for the IPSA index, S&P 500, and Pension Fund C. The IPSA index declined 3.6% in the third quarter of 2024, reflecting a continued volatility we have seen in the local markets. Meanwhile, the S&P 500 posted a gain of 0.8%. Pension Fund C, which reflects the nominal return on investments and serves as a good proxy for legal reserves return in Hábitat, grew by 7.2% this quarter, driven by good performance in fixed-income assets mainly. On the top right chart, we have the formal employment rate. After a slight drop to 71.8% in the second quarter of 2024, we have seen a recovery, reaching 73% in the third quarter of 2024, which suggests some stabilization in the labor market which is crucial, obviously, for sustainable economic activity and consumer confidence. Moving to the bottom left chart, you can see the UF in Chile quarterly variation, which tracks inflation adjustments. In the third quarter of this year, inflation moderated with a 0.9 variation, which is higher than we have seen on the same quarter in 2023. Finally, the bottom right chart shows the monetary policy rate. The Central Bank continues its easing cycle, reducing the monetary policy rate to 5.25% by the end of the third quarter of 2024, down from nearly 10% in late 2023. On slide six, we highlight some regulatory advances we have seen in the healthcare industry, in particular regarding ISAPREs. On May 20, 2024, as you may recall, we already reviewed in our past conference call, the short law of ISAPREs was promulgated in response to a Supreme Court ruling of November 2022. The main aspects of the law and the subsequent circulars are, first, a price adjustment to the unified factors table containing the Circular IF/N° 343, which was effective from September 1, 2024. Second, ISAPREs may not offer plans with prices below the legal contribution. Each ISAPRE also had to submit a payment and adjustment plan subject to an approval by the Superintendencia de Salud, which has to incorporate a refund proposal, considering the implementation of the factors table within Circular IF/N° 343. These have two main considerations. First, the maximum repayment period is 13 years. Also, you can consider the incorporation of an extraordinary premium that cannot exceed 10% of the contribution agreed upon July 2023. Consalud already received an approval of this extraordinary premium, which consists of 0.709 UF per beneficiary. This considers a ceiling of 5% in the contribution of July 2023, which was below the one the law permitted. Consalud was the only ISAPRE that saw an increase below that ceiling. The total amount associated with the refund has already been presented and is still pending final approval from the Superintendencia de Salud. Other considerations that are stated in the law regard the prohibition from distributing dividends until this reimbursed amount is already being paid. Also, there is a consideration for the ICSA index determination for the next three years, which will not consider FONASA in its determination. On the right part of slide 6, you can see the table for each one of the ISAPREs extraordinary premium approved by the Superintendencia de Salud. Regarding 2024 milestones, on August 14, we reached an agreement with Baninter to acquire an additional 10.9% of Banco Internacional shares, raising our total ownership to 78.1% through ILC Holdco, which is the vehicle where we have this participation. Initially, Baninter granted us options to purchase the remaining shares, so we could reach up to 100% ownership as of May 31, 2027. That is more or less three more years. Next, on July 2, Banco Internacional completed its first bond issuance in the Swiss public market. The three-year unsecured bond, maturing on July 23, 2027, carries an annual coupon rate of 2.9%, which will be used to fund the bank's lending operation and diversify its funding sources. Both Confuturo and Banco Internacional approved capital increases plans this year. On April 23, Confuturo shareholders approved a plan to increase its capital up to CLP 74.5 billion, with CLP 18.9 billion already subscribed and paid by June 17. Similarly, Banco Internacional approved a capital increase plan of up to CLP 57 billion during its extraordinary shareholders' meeting held on October 18. Confuturo also secured a significant portion of the SIS insurance portfolio in Tender Number 11, acquiring six male and two female fractions for the period of July 2024 until June 2025, further strengthening its marketing position. Lastly, Vida Cámara secured a portion of the SISCO portfolio in Tender Number 7, acquiring one of seven fractions at a rate of 1.73%, and in Tender Number 8, it acquired two fractions at a rate of 1.84% for the next year. We would also like to highlight that ILC has achieved a major milestone in sustainability, ranking fifth place globally in the financial non-bank industry in 2024 in the Dow Jones Sustainability Index. Our score improved to 73 points, placing us in the 99th percentile, which is an important milestone to our continuous focus on sustainable practice. This marks a significant achievement as it reflects a 62% improvement in our score since our entry the index in 2016. This year ranking reinforces our role as a leader in sustainability within the financial non-bank sector and underscores the strength of our long-term strategy. Slide 10 reaffirms the five pillars of our strategy, which have consistently emphasized in our different presentations. These pillars form the foundation of our approach, driving both organic and inorganic growth opportunities. Our focus remains on achieving profitability in our operations, maintaining flexibility in the businesses we engage in, and ensuring strong financial position. As we just mentioned, we work with ESG values and metrics across all of our activities and subsidiaries. This strategic framework directly supports our purpose to be leaders in creating social and economic value that improves people quality of life. Slide 11 highlights the consistent returns the company has achieved over time, fully aligned with our strategic goals. ILC has maintained double-digit profitability, showing steady growth and resilience. As mentioned previously, the company is now entering in a new phase where growth is expected to be driven primarily by our financial businesses. For third quarter 2024, we record a profit of CLP 57.8 billion, a significant increase compared to the third quarter 2023, which posted CLP 35.8 billion. This increase of nearly 62% was mainly driven by the improved performance of Confuturo, AFP Hábitat, and Vida Cámara Seguros. It's also important to note that during the second quarter of 2024, we recorded a one-time loss of CLP 31.7 billion associated with the accounting liability under IFRS standards at Consalud related to the short law of ISAPREs. On slide 12, you can see the net income composition for the third quarter 2024. We recorded a profit of CLP 57.8 billion, as we just mentioned, primarily driven by Confuturo, Hábitat, Banco Internacional, Vida Cámara Seguros, and RedSalud. Confuturo saw improved investment performance, primarily driven by fixed income and investment funds, along with the release of impairments, which resulted in a profit of nearly CLP 25 billion. Hábitat experienced revenue growth along with an increase in average taxable income, and also an improved financial market performance resulted in higher returns for legal reserves. In the health sector, RedSalud improved its results due to a better mix of inpatient services due to complexity, and also higher income from dental services. However, Consalud recorded a loss of CLP 6.6 billion, mainly driven by lower revenues, explained by the reduction of the GES premium, and a decrease in beneficiaries partially offset by reduced inpatient costs. Lastly, Vida Cámara Seguros show a higher result, mainly explained by the performance of the SISCO number 7 contract, which the company awarded. Overall, ILC achieved a total profit of CLP 57.9 billion in the third quarter, where the main contribution came from the financial subsidiaries. Now I will turn the call to Gustavo, which will give you some highlights on each of our subsidiaries' results. Thank you, Rosario. Now moving to slide number 15. So September 2024, Banco Internacional commercial loans grew by 11%, outpacing the industry 1.7% growth. Commercial loans grew by 42%, significantly exceeded the industry 3% growth, mainly driven by the growing Autofin portfolio and digital consumer loans. Meanwhile, mortgages loans increased by 23% above the industry 6.7% growth rate. Looking ahead, Banco Internacional is focused on three key areas, expanding its presence in large corporations, further developing its retail banking segment, and diversifying its products and funding sources. As shown in slide number 16, Banco Internacional has advanced in developing its retail banking division. Since September 2023, the number of retail customers has increased by 96%, reaching 31,200 customers by September 2024. This growth was further supported by the integration of 31,600 new customers through the acquisition of Autofin in August of last year, and along with an additional 8,000 customers acquired over the past 12 months in this subsidiary. These developments have expanded the bank's retail customer base, positioning it for continued growth in this segment. Banco Internacional is actively growing its retail products portfolio through targeted initiatives and strategic alliance. In the consumer loan segment, which continues to offer the best rates in the market, the bank has expanded through digital cross-selling to both clients and not clients. Importantly, the bank has formed a strategic partnership with Mercado Libre and Portal Inmobiliario, DirecTV, and Tempo, among others, to create cross-selling opportunities between loans, checking accounts, and time deposits. We move to the next slide number 17, presents Banco Internacional operating performance for the third quarter of 2024. The net interest and adjustment margin showed mixed results, with net interest income declining 38% due to lower rates hedging and the end of FCIC program. Along with higher interest expenses, mainly driven by $255 million from the IDB at the end of 2023 and bond issuance in the Swiss market in July 2024. On the other hand, net adjustment income increased by CLP 7.7 billion, reaching CLP 19.9 billion for 3Q 2024. The treasury result fell by 20%, mainly due to lower gains on the sales financial assets and loss on foreign currency derivatives, partially offset by higher exchange rates gain. All in all, the gross operating result declined by 16% compared to 3Q 2024. Operating expenses amounted $22 million in 3Q 2024, a 7% decrease compared to the same period in 2023. This reduction was mainly explained by the positive adjustment of CLP 2.1 billion in the intangible assets related to the acquisition of Banco Internacional. This was partially offset by an increase in administrative expenses of CLP 2.6 billion. All in all, mainly due to the decrease in the gross operating result, the operating efficiency ratio for the third quarter reached 53.8%, 544 basis points higher than 3Q 2023. Explained by, as I mentioned, lower operating income. On the next slide, on slide number 18, we can observe risk expenses have decreased during the period, mainly explained by lower provision for commercial loans, along with higher releases of written off loans. Total risk expenses decreased to CLP 6 billion in 3Q 2024, down from CLP 10.8 billion in 3Q 2023. Provision expenses over gross operating income reached 14.8% compared to 22.1% the same quarter last year. September 2024, the NPL reached 2.4%, representing a 14 basis point decrease compared to the same period of the previous year. This is important to mention that now we are aligning with the industry in this ratio. The risk index remained stable at 1.8% compared to 2.5% for the industry. In terms of collateral coverage, Banco Internacional continues to lead the industry, achieving 71% as of September 2024. Additionally, Banco Internacional fully complies with Basel III standards, maintaining a solvency ratio of 15% as of September 2024, reflecting a strong capital position in line with regulatory requirements. Slide number 19 shows the evolution of Banco Internacional profits and ROE over time. While the bank has shown sustained growth in profit historically, for 3Q 2024, there was a decrease in profit compared to the same quarter last year. Banco Internacional profit for 3Q 2024 decreased by CLP 0.8 billion from CLP 11.4 billion in 3Q 2023 to CLP 10.5 billion. This was mainly due to lower net interest and treasury results, partially offset by increased net adjustment income and lower risk expenses. Despite this short-term decrease, Banco Internacional continues to maintain a strong long-term profit growth, with profit reaching CLP 54.7 billion and ROE of 15.9% for the last 12 months, ending in September 2024. Now, if we move to the next subsidiary, Confuturo. The annuity market, as seen on slide number 21, maintained the dynamics experienced during 2023. The average sales rate during the 3Q 2024 reached 3.42%, 25 basis points higher than the same period of the last year. Consequently, the number of people opting for annuities increased by 6% quarter-over-quarter, while choosing program withdrawals decreased by 13.4%. This resulted in a 44% of pensioners opting for program withdrawals and a solid 56% choosing for annuities in September 2024. Comparing this to the previous period, although the annuity premiums is slightly lower than the last year, there is a resilience, and long-term trends shows the annuity markets continue to show strong preference. In terms of premium volume, total pension industry premium reached 47.2 million UF in the third quarter of 2024, with 26.6 million UF allocated to annuity premiums. Moving to slide number 22, we see that Confuturo's annuity premiums decreased by 8.3% in real terms. The offered rate sales for the 3Q 2024 reached 3.45%, higher than the 3.2% regarding the same period last year. Confuturo achieved 12.5% market share in annuity sales, positioned fourth in the industry for this quarter. Total net premium income for 3Q 2024 increased, reaching 305 billion CLP compared to 153 billion during the same quarter last year. This increase was mainly due to higher revenue from the disability and survivor insurance contract number 11, which began in July 2024. This was partially offset by lower revenues from the annuities mentioned before. On slide number 24, we can see Confuturo's investment portfolio performance for the quarter. The investment result grew by 18% quarter-over-quarter, reaching 107 billion CLP. This increase was primarily driven by returns from local and foreign fixed income investments, as well as improved results from local investment funds. The fixed income, both local and foreign, contributed positively to overall results, with local fixed income adding 10.6 billion CLP, where, and it is important to mention, 8.4 billion are related to impairment releases variation and foreign fixed income contributing 2.1 billion. This was partially offset by lower returns from foreign investment funds in this quarter by 2.7 billion. In the next slide, we see Confuturo results in 3Q 2024 were mainly attributed to higher premium income and better performance of the investment portfolio. Confuturo posted a profit of 28.4 billion in 3Q 2024 compared to 175 billion in 3Q 2023. This increase was mainly due to higher DNS premium income along with improved returns from the investment portfolio of fixed income impairment release, were partially offset by lower non-operating income. Regarding non-operating income, it decreased by 31.4 billion CLP, resulting in a loss of 17.3 billion. Of this variation, 37 billion corresponds to lower exchange rate and indexation adjustment results in life insurance with savings, which, due to its fiduciary nature, is reversed and has no impact in the Confuturo's profit. Regarding the company own portfolio, 0.5 billion corresponds to lower exchange rate results, while 3.9 billion decrease is attributed to lower returns from indexation adjustments. Overall, Confuturo's ROE for the last 12 months, ending in September 2024, was 15.2%, higher than 12.4% recorded in the same period of 2023. Regarding AFP Hábitat, as shown in slide number 26, revenues increased by 4.8% in 3Q 2024 compared to the same period last year, reaching 72.3 billion. This growth was mainly driven by fees related to mandatory savings, reported by a 7.9% nominal increase in the average taxable income of AFP Hábitat's contributors compared to the same period last year. The average taxable income for Hábitat contributors in September 2024 was 20.6% higher than the industry average. It was partially offset by 3.6% year-over-year decrease in the number of contributors. Moreover, legal reserve returns increased by 34.9 billion, reflecting a better performance from funds with higher exposure to fixed income markets, Fund C, D, and E. As shown on slide number 27, AFP Hábitat has maintained stable profits over time, with profits reaching 167.1 billion CLP for the last 12 months, ending in September 2024. When looking at 3Q 2024, profit increased by 108% compared to the same period last year, rising from 25.4 billion in 3Q 2023 to 52.6 billion in 3Q 2024. This increase was primarily driven by higher returns on legal reserves due to the better performance of financial fixed income markets. On slide number 29, if we move to the health sector, we observe a more complex mix in RedSalud, with an increased activity in dental services contributing to higher revenues. Revenues reached CLP 186.2 billion in Q3 2024, a 9.1% increase compared to the same quarter of the previous year. Revenues from inpatient, outpatient, and dental services grew by 19%, 5%, and 8%. Starting with outpatient and dental activity, there was a 13.8% increase in dental consultation, rising from 83.2 thousand in Q3 2023 to 94.7 thousand in Q3 2024. Exams also saw an increase of 6.8%, while medical consultation rose 2.1%. The higher revenue in the inpatient segment was mainly explained by increased revenues from critical care units and hospitalizations. The number of surgical procedures rose by 0.9%, while they combined with a more complex case mix. The bed occupancy rate was 74% across the network, compared to 67.4% in Q3 2023. As a result of these operational improvements, revenues grew across all segments. Outpatient and dental centers saw a 3.2% increase in revenues, reaching CLP 71.8 billion. Hospital in the metropolitan region posted a 12.1% increase in revenues, totaling CLP 76.5 billion. Regional hospitals recorded the strongest growth, with a 20% increase in revenue, reaching CLP 44.8 billion. Slide number 30 presents RedSalud's EBITDA breakdown. For Q3 2024, EBITDA increased by CLP 5.9 billion, reaching a total of CLP 20.9 billion, up from CLP 15.1 billion in Q3 2023. This growth was primarily driven by better mix of services in the inpatient sector and increased dental service activity, alongside improved efficiency in personal expenses and medical fees. This led to an increase of CLP 2.8 billion in the quarterly EBITDA at hospitals in the metropolitan region and CLP 2.7 billion in regional clinics, partially offset by a decrease of CLP 248 million in the outpatient and dental centers. In addition, the EBITDA margin improved from 8.8% in Q3 2023 to 11% in Q3 2024, driven by better operational efficiency, mainly in hospitals. As we have highlighted before, RedSalud continues to diversify its revenue sources. The revenue breakdown by insurer shows a growing share from the public insurer, FONASA, which has gained increasing relevance. For Q3 2024, FONASA represented 48% of RedSalud revenues. If we see the last 12 months, this share reached 51%. This reflects RedSalud's strategy to diversify its source of income and reduce its dependence on the private insurer, ISAPRE. Slide number 32 shows RedSalud EBITDA and EBITDA margin evolution over time. RedSalud's EBITDA continues to show a sustained high level, reflecting a strong performance in both inpatient and outpatient services. For Q3 2024, EBITDA reached CLP 20.9 billion, representing a 39.1% increase compared to Q3 2023. The EBITDA margin also improved, rising from 8.8% in Q3 2023 to 11% in Q3 2024. During Q3 2024, results were driven by a more complex inpatient mix, higher activity in dental services, along with improvements in operational efficiency. Regarding Consalud, revenues were affected by the adjustment in GES premiums and a decline in beneficiaries. The reduction in GES rates led to a 5.7% quarter-over-quarter decrease in the average contribution per beneficiary, offset by a 7.6% increase in the base rate at the beginning of this year. Additionally, the number of Consalud's beneficiaries decreased by 7% quarter over quarter, in line with the industry drop. Consalud's revenue dropped by 15% quarter over quarter, from CLP 159 billion in Q3 2023 to CLP 188 billion in Q3 2024. Consalud's cost decreased by 4% quarter over quarter, mainly due to 12% and 6% reductions in total inpatient and inpatient costs, which was partially offset by higher medical leaves costs. The number of medical leaves related to mental health decreased, but the average costs have increased. All in all, Subgrupo Consalud posted a quarterly loss of CLP 6.2 billion, compared to a profit of CLP 9.7 billion recorded the same period last year. This was primarily due to lower revenues from reduction in the GES premium in January 2024, partially offset by a decrease in inpatient and outpatient coverage costs. Regarding Vida Cámara, the contribution margin for the health and life insurance increased by CLP 0.7 billion compared to 3Q23, driven by the growth in beneficiaries and investment result. In terms of growth, premium income rose by 23% due to an increase in beneficiaries and lower account receivable deterioration as a result of a change in accounting model. Consequently, the number of Vida Cámara beneficiaries reached 604,000 as of September 2024, reflecting a 20% year-over-year increase. On the other hand, costs increased by 26.8%, mainly due to a higher outpatient coverage and increase in the number of beneficiaries. This led to a loss ratio of 89.9% during 3Q24 compared to 87% in 3Q23. Vida Cámara reached a quarterly profit for the third quarter of 2024 of CLP 516 million, compared to CLP 872 million recorded the same period of the last year. Now, if we move to slide number 37, we will see the financial position of ILC at an individual level. Concerning ILC debt and liquidity structure, the company achieved a net financial debt to equity ratio of 0.29 times. ILC maintains CLP 194.8 billion in liquid assets to meet future obligation and actively manage its cash through investment aimed to reducing financial carry and hedge from foreign currency exposure of its bond, 144A, placed in the U.S. market. Slide number 38 shows the evolution of ILC stock price, something that is very important for us. ILC stock price, which has outperformed the IPSA index year to date. The stock price increased by 19.9% with a dividend of 7.1% based on the closing price of 2023. In comparison, the IPSA index rose by 7.9% year to date. Now, in order to wrap up and make the conclusion of the period, I will turn the call over to Rosario, as she will mention the main highlights for the period. Thanks, Gustavo. To wrap up, starting with Banco Internacional, we observed a significant contribution from the growth in both commercial and consumer loan portfolios, as well as a decrease in risk expenses along with improved NPL ratio. However, during the quarter, the bank faced a lower gross operating result, mainly due to expenses in rate hedge and lower treasury income. Moving to Confuturo, the annuity market, as Gustavo mentioned, maintained the dynamism we have seen in the past year, and also what we saw during 2023. This, combined with higher investment returns and fixed income impairment releases, boosted Confuturo's results. In Hábitat, the operational result was driven by an increase in the average taxable income per contributor. Additionally, we saw stronger performance of financial fixed income markets, and their impact on legal reserves contributed positively to the overall performance of Hábitat. In the health sector, Consalud faced challenges with losses primarily driven by lower revenues following the adjustment in the GES premium. However, these losses were partially offset by reduced healthcare coverage costs. On the other hand, RedSalud reported a stronger EBITDA, with nearly 250 basis point increase in EBITDA margin, supported by a more complex inpatient mix and an increased activity in dental services. Finally, ILC continues to maintain a strong financial position with its result primarily driven by its financial subsidiaries, Confuturo, Banco Internacional, and AFP Hábitat, along with a solid performance from RedSalud. Well, this concludes today's presentation. We will now open the floor for questions you may have, so please feel free to put them in the platform. Hello? Hello, Carlos. You may ask your question. Yes. My apologies because I joined late, so maybe you have touched on this already. In terms of the banking business, we are seeing further concentration in the Chilean market. Do you believe that ILC and Banco Internacional will be a player in this process, or you continue to grow organically, and that's how you want it to continue? Hi, Carlos. Thanks for your question. The bank has shown in the past and what we see in the future, a combination of maybe both of the alternatives. We have grown organically, outpacing the organic growth the industry shows in the past years. We think we have been very successful in this organic path growth. We've also grown inorganically, for example, with Autofin acquisition of 200% in 2023. So we continue to seek both types of growth in the future also. Just to add that the bank is continuously looking for any opportunities like Autofin, which is a financial non-bank, with a large base of customers that, in a way, merge the base of products that the bank has. But as they are looking for those opportunity, the bank has room to grow organically, both in commercial and consumer loans. Would you say that at this point, there are no particular opportunities that you are looking at inorganically? I would say that we always are looking for opportunities. If there is something on the table, we will say opportunely in the right timing to speak up. Okay. Thank you very much. If there are no more questions, perhaps one on the AFP business. Again, you may have already mentioned this. What do you think are the prospects for a legal reform coming through, and would that fundamentally change what you expect from Hábitat? Regarding the pension reform, there's no main changes in the last period. The discussion surrounding pension reform in Chile, I would say, remains ongoing, and the main focus of the debate has largely stayed the same. One, the primary issues continues to be the percentage of the pension contributors that will be directed towards solidarity or individual accounts. In addition to this, the government proposal in its current form is quite similar to the one that's presented in November 2022. The core base elements of the reform, such as the solidarity contribution, remain unchanged. While there have been ongoing discussion, there hasn't been, I would say, a major shift in the fundamental direction of the reform. We believe the discussion will continue along the same lines that we have seen over the past few months. The debate is still centered around the same core issues, as I mentioned. It is also important to highlight that in this business, something or some outcome is challenging because the approval or eventual implementation of the reform will depend on political negotiation and timing. Okay, but then, to be specific, there was also a proposal to concentrate the administrative part of the payments of pensions, and take that away from the AFP. Is that something which is still on the table? And second, do you think that in the rest of the presidential term, it is more likely or less likely that there will be a change, sorry, an approval of the pension reform? I will say that, as I mentioned, it's difficult to predict the outcome. I will start with your second question. It's difficult to predict outcome because, the approval and eventual implementation of the reform will depend on political negotiation and timing on this. For your first questions, I will say there's a debate on the benefits that any of the proposal that the government refers could have. I don't know if you Yes, there has been a debate regarding the benefits of the centralization of the administrating activities, with no evidence of efficiencies, quantified efficiencies on this. But as Gustavo said, I would like to reinforce that all this discussion remains open and has the timings of every political discussion that we've seen also in the past. I do not know if there is another question. I do not have more people asking. Remember, you can write the question if you do not want to talk in the platform. Okay, if there are no more questions, this concludes today's presentation. Before we end the call, I would like to extend a cordial invitation to ILC's Investor Day 2024, which will be held in Santiago, Chile. The event will take place on December 10 and provides an opportunity to present our strategic priorities, review key developments, and discuss the outlook for our core business areas. If you want to participate, you can write us to our IR contact, which is in the invitation of this call. That is everything for today. Now if- Thank you very much for attending today's call. Yeah. If you have further questions, feel free to contact our IR team. Thank you for attending the call, as Rosario mentioned before, and we hope you can join us next month in Investor Day. Goodbye and see you in December.