Americanas S.A. (AMER3) Earnings Call Transcript & Summary

Good morning. Welcome to the video conference of Americanas S.A. for the first months of '23. Today, with us, we have Leonardo Coelho, CEO; and Camille, financial directors and IR of the company. This event is being recorded [Operator Instructions] It's important to keep in mind that today's event has a support presentation which may be accessed at ir.americanas.io. Eventual comments made during this presentation regarding the future business prospects, projections, operational and financial goals are based on assumptions made by the company as well as on information currently available. Future considerations are not a guarantee of performance involve risks, uncertainties and assumptions because they refer to future events and therefore, depend on circumstances that may or not occur. Investors should understand that industry conditions and other operational factors may have an impact on the future performance of the company, leading to results that materially differ from those included in these future considerations. The company clarifies that the accounting information is available according to standard comments and the norms issued by the CVM in BRLs. And we would now like to turn over to our -- the Americanas, CEO; Mr. Leonardo Coelho. Please proceed.

Good morning. I am Leonardo Coelho, CEO of Americanas, and I would like to start by thanking the teams that have worked hard in the last 90 days so that we could share the information with you. '23 Was undoubtedly the most difficult year in the history of the company, not only because of the size of the fraud that was revealed, but also because of the need of reconstruction that presented itself. Throughout the first half of '23, after the revaluation of earnings fraud, we worked on the diagnosis of what was not working well in the company. This allowed us to seek the necessary levers for us to return to our essence, a retail company that meets the basic and daily needs of its customers in an uncomplicated way, which are part of the affective memories of Brazilians. And thus, we organized a strategy to attack the problem into 3 layers. Number one, it was to stop the prices. Number two, to start generating cash again and to structure new avenues of growth. The first layer, the so-called stopping the crisis was also divided into 3 fundamental work fronts, unrestricted collaboration for the investigation. Second layer, discussion with our creditors for the construction of a solid Judicial Recovery Plan, which would definitely solve our capital issues. And number three, minimal maintenance of operational functions, which was achieved by a transformation office of the company. To ensure the success, we counted on a team totally focusing on keeping this operation going. And therefore, this group was not involved with the complex process of judicial reorganization nor with the investigation. It worked with operations only. And within this context, we went through 2 main challenges. Number one, and this is still ongoing, establish a culture that would eliminate the barriers existing between the company's businesses. I mentioned it in '22 when we had our call, but basically, the company had 3 main cultures. One of them was an operation based on its over 1,700 stores. Digital area which saw the company as a platform that needed this to be validated. And also fintech, which was a bank that achieved its clients by means of our operations. Today, we have combined all of these different areas and working to combine this culture, which is very important in this phase. The second challenge was to guarantee that the most strategic actions would be open for investments. And today, we can say that we have already overcome the most critical phase. We have a lot ahead of us, and we cannot say that this critical phase that we have already overcome will guarantee our success. There's still a lot of work to be done so that we can generate operational results. We ended '23 with our recovery plan approved by our creditors with an expressive consideration, the amount of credit and the number of creditors, which is greater than 91%. We expect that now with this approved, we will have news in the upcoming days. We had work done along with our creditors, our legal department so that we could design a plan that would meet the interest of the largest number possible of stakeholders that at the end of the day, would generate a healthy capital structure, allowing us to generate results again. And in addition, the strength of the Americanas brand proved to be essential for us to continue operating with our stores. Our suppliers did not leave us in this partnership-relationship guaranteed or supply in the hardest times in '23. We are now closer than ever to building a new relationship phase with all of our partners. Also essentially in this process was the credit line made available by our reference stakeholders, so-called DIP financing. And that allowed the company to keep the stores going with a good assortment, ensuring a healthy level of sales in our physical channel. Our customers were also instrumental in this process of resumption and remained with us ensuring a recurring flow, especially in our physical stores. The digital channel has a higher average ticket and the products are more comparable, but initially, it suffered a lot because it had also a confident shock. In the physical stores, all that our customers had to do was buy, pay and leave in the digital world, especially because we're going through this recovery plan. Things happened in 3 ways: Sellers fear selling their products in our platform because they were not sure whether they would be paid or not. And then on the other hand, the clients also fear purchasing from a company, which is undergoing a Judicial Recovery Plan. This was very strong, and we were really affected by it in our digital channel. But we have been working very steadily and struggling with our customers. And with that, I would say that this initial confidence of crises was to overcome over time. To improve profitability, we focused on our digital channel, adopting a strategy where we dehydrated our 1P, migrating to relevant categories to 3P. We offer the same assortment, but the difference is that instead of buying Americanas they use it directly. And then with the DIP and the immediate payment from our class IV creditors, we were able to minimize the impact to our smaller suppliers, which are more successful in this first moment of prices. And with that, other assets such as HNT ended up benefiting throughout '23. In our last earnings release in November '23, we presented a detailed strategic plan for the different areas. We are still dedicated to that plan. We continue making the important decisions with the controllership of operations so that we have a better decision-making process, aiming at our figures, and this has been done since January, February '23. And therefore, we are developing a unique culture back to basics where everyone works to maximize -- I'm sorry, the result of a single company and on new relationship basis. And this is done with all of our stakeholders. There's a lot to be done. I've mentioned it. There's a lot to be rebuilt and it's not going to be easy. We know that a collective effort is required not only by Americanas but also our business partners. We do believe, though, in the strength of our company and our heritage and in the over 30,000 employees who will continue working together to build the future of the New Americanas. And then moving on to Slide 2. Our plan is to present to you an update on the Judicial Recovery and then talk about the results for the 9 months of '23 and then finalize our strategic plan. It's in a new format, but in essence, it is the same one that was presented in the call of '22, and that was on November 16. And I now turn over to our CFO, Camille, and she will talk to you about what has happened since November 16.

Thank you, Leo. Good morning, everyone. And before presenting the next steps of the judicial reorganization, I would like to thank all of those involved in the 11 months of intense work to put a place -- to put in place, actually, panned that would meet the interest of the largest number possible of our creditors. In the next few days, we will have the approval of our Judicial Recovery, and then it will be published so that we can really put it into practice. We have 2 slides for you, and they are based on the assumption that the approval will take place on February 29, next Thursday. Just to make it easier for you to understand because we cannot control this date. The different steps that had to be fulfilled have been done, and we are now moving towards a conclusion. On the first business day after the publication of the approval. And in case the end of these numbers falls on a weekend or a holiday the next working day will be used. We have also created a portal for our creditors to facilitate sending documents, signatures. You can find a step-by-step in a session with the Q&A, which will help you clarify your concerns. So let's see, so as of the publication of the approval, which once again, our assumption is the 29th just for the [indiscernible] effects we have up to 15 days. And in our example, this will be on March 15 for the receipt of the terms of adhesion from suppliers, creditors, employees. Creditors are up to BRL 12,000, and those with claims of above BRL 12,000, those who agree to settle the claim by receiving BRL 12,000. Those documents will be submitted electronically on the portal. It will be uploaded on the day of the validation of the plan. By this date, we will also have the second financing DIP amount from reference shareholders to the tune of BRL 3.5 billion, this amount is quite important because it will be used for us to settle payments with creditors before the capital increase. Within the 15 days, we also need to disclose the details of the Reverse Auction via a notice to be published on newspapers. By April 1 or 30 days after the approval, we will disburse the funds intended for creditors and suppliers part of the plan. We also pay creditors who have not been paid yet, those of Class I and IV. Creditors with claims up to BRL 12,000 and those with claims above BRL 12,000, and who have agreed or opted to receive BRL 12,000 in exchange by a full settlement. Until that date, also April 1st, we'll receive the terms of agreement from all the suppliers, technology suppliers. And whoever settled with the #I and II Restructuring Option, and also creditors with amounts which were withheld. All of this concerning suppliers, tech suppliers, Restructuring Options I and II withheld suppliers. All those terms have been defined in our recovery plan, just to be sure, it's all defined there. Within 45 days of the publication of the approval, and our example will be April 15, we must disburse the amounts intended for Tech Supplier Creditors. And also, that's when we must convene the shareholders' meeting to increase capital as part of this Restructuring Plan, the BRL 24 billion. Moving on to Slide #3, if I may. So until the 29th, we'll be paying the first installment of the additional amount to creditors, suppliers, employees which are eligible. And then we have the month of May to have a general shareholders meeting to increase capital and restructuring the capital. And then we have until May 31 to pay the first installment for the remaining suppliers. All those deadlines, of course, will depend on the approval date as you can see as footnote, if the publication of the approval happens by tomorrow, which is highly unlikely by now. So this will be pushed to April 30th. So -- but that may happen. So the deadline, May 31 will then be pushed to May 30th. Through June, we have the final phase of the plan. A capital increase, restructuring, buyback of creditors related to the option #2 of the Restructuring Plan, Debentures issuance to the tune of BRL 1.875 billion. As I'll show later, it will be the only remaining debt for the company after the restructuring plan is in place. We have finished an important step of the Judicial Recovery Plan making the payments to creditors. And we'll have a lighter company, a more sanitized balance sheet, and we will finally turn that page. So we hope to close the first half of the year, having turned that page relative to the major steps within the Judicial Recovery Plan. I give the floor now back over to Leo for him to analyze the number for the first 9 months of 2023.

Thank you Camille. So let's look at the operations, first and foremost. As I said earlier -- and you have all seen 2023 was a very difficult year for Americans and all the stakeholders, of course, creditors, suppliers, sellers and even clients, customers involved in the process we all felt that very close to your heart. Right now, we are finalizing the first part of the restructuring plan, as Camille just mentioned. 2023 was devoted to emergency work with intense immediate actions to stabilize the operation and as we started to rebuild the basis, the building blocks for the company all those actions were to some extent limited by the scenario, which was quite uncertain, which, of course, inherent to a company going through that type of crisis ready for approvals and so on. And as a consequence, in numbers, which will be presented today, are considered positive within this context, right? A context in which a company is going through a, through this recovery process, and therefore, a lot of uncertainty around. Today, as Camille mentioned, this uncertainty is less relevant. As we showed last year, the numbers for the first 9 months of the year for 2023, they reflect those difficulties, of course, of the Judicial Recovery, I could mention inventory disruption in the first half of last year. Expenses with financial aids, the commissioning of stores, the commissioning of distribution centers, layoffs, all of that has impacted the numbers for the first 9 months of last year. In addition to the timing to implement the strategic plan, which once again was put together throughout the year. And we also had the company's executives, of course, had to dedicate some effort to investigative processes that took place last year. The highlight for the first 9 months of the year, last year, they lay bare the size of the impact of what we went through, but they also show a start of a new phase for the company. For example, with a gross margin showing signs of recovery and other KPIs also showing promising trends showing that we remain as an important retailer for this industry, which affect the lives of thousands of people. Our total GMV in the period of BRL 16 billion was impacted by the digital issues, especially for the 1P as I mentioned earlier today, which dropped by 77%. Physical stores helped mitigate or partially offset that impact, this was expected within our strategy, but still, it's a relevant impact on our GMV Same-store sales, BRL 8.7 billion, they account for a drop in that KPI. But when we look at the numbers on a quarter-by-quarter basis, we see an improvement in Q3 2023. And I'll give you some more color as we move forward. We closed 99 stores throughout the period, and those stores had a performance which was below par. They had a negative contribution to our final results. And even after several studies, those 99 stores proved to be difficult in terms of recovery, right? The numbers would never be reversed. So and I mentioned back last year, even considering that all our stores are assets for the company, those 99 stores, our decision was, at the end of the day, to close them. But we still have an important footprint, 1,700 stores across the country, and we have a footprint across all the states of the country. As we started to reposition the company strategically even with all the limitations I mentioned, it has already brought about good results. Gross margin, growing 11.1%, reaching 27.7% now adjusted EBITDA ex-IFRS improving BRL 791 million when compared to the first 9 months of 2022, and we managed to reduce net losses by BRL 1.4 billion in that period, a lot to be done, a lot to be covered. I will repeat the sentence. A lot to recover, a lot to go through until we reach stabilization. But we are exactly where we wanted to be at this point. It's a step-by-step process, a consistent improvement process. And as in a video game and every phase, we overcome, challenges are more difficult, but we also become more skilled to face those challenges. Moving on to the next slide, please. Here on Slide #6, we have the new profile of the company's GMV for 2023, which reflects the company's strategy, which is more in line with the level of profitability that we want to reach for the company. Within this context, Digital had a significant slowdown of approximately 77% as I said, in 9 months of the year. And the physical sales also showed resilience, a drop of only 4% in sales over the 9 months, even though the company was going through a very difficult context, inventory issues and so on. And of course, with the closing of the 99 Americanas stores, as I also mentioned. It's worth highlighting the progress we've seen over those 9 months in sales on the physical platform. In the first 2 quarters, we were impacted by this initial difficulty of Judicial Recovery, supply assortment and a more important disruption higher than we were used to historically speaking. So as we move forward in negotiations with our partner suppliers, and supplies started to get more stabilized, our performance follow suit. The same-store sales in Q3 2023 grew by 3.6% and some categories that we call general merchandising show high single-digit growth. So as of the third quarter, and I will go into more detail, in a moment. So as of the Q3 last year, we start to recover our essence and start to show more "normal results" for the company. It's also worth remembering that we adopted last year, the first half, a very conservative profile. As again, this is only normal when you go through Judicial Recovery Process. So we started emphasizing purchases where we were certain of sales and cash generation. We were fortunate enough that one of the main categories in this group, including candy and chocolate, they enjoyed a very strong seasonality in the first half, especially because of the Easter holiday. So on the one hand, this action -- this conservative action led us to have a more diverse mix with few categories and assortment. On the other hand, it was key to generate cash, which has added with the DIP financing allowed us to be more daring in Q3 2023. And we went back to placing our bets on traditional categories, light bulbs, for example, and start to re-zoom our more diverse mix. We moved from a mix, which was more based on convenience purchases in the first half to a more traditional diverse mix in the second half of 2023, which will be the case moving forward. I mentioned light bulb as an example, and I can give you numbers of that advance and the strength of our physical sales channel. We moved from zero market share to something close to 12% in just about 4 months. which shows, of course, our operational focus, we will be able to unlock several growth avenues as we move forward in our physical platform. Moving on to the next slide, please, Slide #7. Here on Slide #7, have the most significant adjustments we did in digital. And once again, they are in line with what we had planned for 2023. In November 2023 when we were addressing numbers for 2022, Camille and I talked about the detail of our strategic plan. And in digital, the idea was to bring operating deficit down to zero by offering products in 1P that will mirror the physical mix for 3P. And it will function as an endless shelf to complement the mix. And in this case, clients will also find what they need. It is actually to reduce the capital and maximize what we can do internally. On the right side graph, we can see a relevant slowdown in the digital platform. because of implementation of this new strategic model and also because of the context of the Judicial Recovery, especially in the first quarter of '23. When P had a reduction of approximately 87%, whereas in 3P, it was approximately 70%. These figures, however, do not show the other side of this story. The profile of the sales made in '23 in our digital sales, we created a pathway for us to achieve a breakeven of the operation. And we are already accelerating some important actions that will lead to a breakeven in the first half of '25. And with that, we started the process where we develop new bases of relationship with our sellers and especially with our customers. Also, this reinforces the importance of our digital channel and the omnichannel strategy of Americans having a reinforcement, which we expect with this new mix, even if the GMV is much lower than what we had in the past. And then once again -- we once again reinforce that GMV is an important indicator as long as it also has profitability. And now moving on to the next slide, Slide #8, we can see a significant indication of the evolution of our strategic proposal. A reduction of our net revenue of 45%, impacted by the deceleration of digital also followed by a relevant evolution of 11 percentage points in the gross margin, going from 16.6% in net revenue in the accumulated 9 months of '22 to 27.7% in the accumulated 9 months of '23. Important to highlight is the improvement in gross margin, resulting from multidisciplinary work and includes different levels of our operation. At the same time that we migrate relevant category in sales, 1P to 3P and rationalize spending on digital marketing and the physical stores, and we also migrate categories of low profitability to 3P. This all strengthens categories where we are reference, have good profitability, assortment and can optimize our logistics network -- logistics supply network to deliver more value to our clients in the digital and digital channels. We are constantly working with the industry. We continue seeking for greater efficiency in our mix and our logistics will continue doing the same. With that, we will have adjustments. We deal with them very regularly. We revisit our own brands and also in the call of '22, the retail media area, which has become more and more attractive for the industry to access their clients and our stores and digital channels. And now moving away from the details in the operations, I turn back to Camille once again so that you can talk about our debt and add to that.

So moving on to Slide 9. And before discussing the evolution of the adjusted EBITDA between '23 and '22, it's important to highlight the rationale of the non-revised pro forma adjustments that we made in '22. In '22, we had an adjustment of approximately BRL 760 million of extra expenses with suppliers and this resulted from our consolidation with our creditors. These debts were accounted for in the fourth quarter of '23, and we adjusted our expenses throughout the year, so that we had a better representation of the company's results. In '23, we excluded the effect of these expenses related to the Judicial Recovery and investigation of approximately BRL 270 million, so that the numbers were on a comparable basis. With these adjustments, we had an evolution of BRL 791 million in adjusted EBITDA even with the SG&A of '23 is still impacted by operating adjustment expenses, closing of stores, expenses with the labor terminations but that still had a significant impact on our EBITDA. In Slide 10, we will analyze the company's debt. The gross debt of the company was very stable throughout this period. It went from BRL 40 billion to BRL 38.4 billion in the third quarter. The main responsible factors for this was the adjustment of a FIDC quota. We also zeroed the cash flow hedge account, and this had to do with the Judicial Recovery request. Also, we had an increase in the deposit line in the order of BRL 1 billion by September '23. And this was only done in the fourth quarter. Our cash position went from BRL 6 billion at the end in to BRL 3.5 billion in September '23 as a function of an operating cash consumption. And also, we had some amounts that were blocked by some creditors, and this will be included in the reorganization of our Judicial Recovery Plan. We've talked about this. This is cash that has been blocked. It's important to highlight that with the approval and execution of the plan, looking at the right side of the slide, the company expects to reorganize its capital structure with a gross debt of BRL 1.875 billion after capital contributions and debt restructuring. And then we only have this debenture left. This is a very important step with our capital structure, reorganized our teams can start focusing on recovering our operations and also future growth opportunities, as we will detail in the next slide. So now I turn back to Leo, so that he can talk a little bit about our strategic plan, which has already been described.

Well, before talking about strategic plan, I will reinforce what Camille has just said. In '23, here at Americanas, especially the high administration had to share the attention given to operations to other things that were done in parallel, including investigation and Judicial Recovery. As of '24 and especially the second half of '24 with all of the approvals of our Judicial Recovery, we will once again and finally have -- our total book is dedicated to operations. This is essential. It will come at a very important moment of our reconstruction. So in Slide 11, we reorganized our strategy. This strategy that was presented in the call of '22. The relevant fact of January 11 and the ensuing prices after the Judicial Recovery, we had to define a strategic plan for the company's recovery and that was divided in 3 layers, stopping the crisis, number one; number two, generate operating cash in a constant manner. And number three, rediscover growth levers. For the purpose of this disclosure, the most relevant layer is to stop the crisis. I had already talked about the maintenance of our operating capacity, the Judicial Recovery and also the collaboration with all of the investigations of the fraud in our earnings results. So initially, we had to stop the crisis so that we could stabilize the operation, and then our clients would keep on trusting our brand and meeting their needs. Also, we had to reverse our cash conditions, and we believe that we were successful when we analyze our NPS and its evolution. Another important aspect of this stabilization phase was the reprofiling of our debts. And as Camille mentioned, to generate a balanced balance so that we could develop our activities in a sustainable way. Under Camille's leadership in December, we approved our Judicial Recovery Plan in AGC, and this approval we had only shows how robust this plan is to accommodate the largest number of interest possible. The recovery front has already been presented in this call and had robust capital increases, also a capitalization of bankruptcy, credit by credit is to rebalance our capital structure. And we are now about to conclude the approval of the recovery plan. My special thanks go to the massive confidence Americanas was honored with, and we reinforce our commitment to continue working hard with serenity and intelligence to unlock the wealth generation capacity of this company. And then on the investigation front, we continue contributing to the ongoing investigations carried out by the competent authorities and also by the independent committee appointed by the Board of Directors of Americanas immediately after becoming aware of the differences in the financial statements. The second layer of our plan will focus on our team in '24, '25. We will seek to accelerate all of the initiatives that were started in '23, and will advance the initiatives of our strategic plans that have not yet been implemented. We will also implement a new store model as of '24. It does not essentially changes the way we meet our clients' need. It has more to do with a more intelligent design in our physical stores. In digital, we have already started the strategic repositioning, focusing on profitability through the migration of different categories to 3P. Also, the strengthening of O2O as a mirror of the physical channel with an integration of Ame in our system as an intelligent discount platform and loyalty as well. We will also transfer part of what we learned from this efficiency packaging '23 to HNT and Uni. In parallel to all of these challenges, we will continuously seek for growth alternatives that will enable the generation of value for our stakeholders. We cannot wait for layers 1 and 2, stopping the crisis and generate operational cash to happen so that we will start considering about the third layer. With this in '24, we created a small group which will intelligently assess growth opportunities, both in physical and digital. Today a year down the road, we can say that we still have a long way ahead of us. And we are driving this -- those several people engaged, skilled, qualified team with a very solid basis to support the strategic plan we have been presenting to you since last year. A lot of work to unify the cultures, as I mentioned, different cultures have coexisted within the company, and we continue to strengthen meritocracy, austerity and working towards reaching one single objective, a focus on the client. As we have this large footprint -- unique footprint and with the affection of our clients' 100-year history, we believe that as we turn the page, it is now up to us to reach the end of this transformative process in a successful way. Let me jump in, if I may. Just to give a break news. Our plan has just been approved. Now we need to wait for it to be published. I just got news that our plan has just been approved. Oh! That's excellent news. So we are 3 days ahead of plan. Now we still need to wait for the publication. So it will happen on the 29th, right? That's really great news. Thank you, Camille. So moving on to the last slide, is our logo just as a reminder and as a thank you as we present yet another chapter of our history, this process of transformation and reconstruction would not have been possible without this team of ethical professionals, people who are fully committed to this upturn and they are aware of our huge responsibility, and I know they will continue to work tirelessly for this company -- for the future of this company nor would we have gotten here without the partnership and trust of our suppliers, sellers, shareholders, investors, customers and so also a big thank you to all of you. And we'd like to renew our invite to join us and have faith in our journey towards the future. Thank you.

[Operator Instructions] Our first question comes from Gustavo Senday from XP.

First, as to the optimization of your footprint you have closed 99 stores. Can we expect another wave of closing stores? Could you identify specific regions where you closed stores? Or was it a more widespread initiative? You talked also about the new model of stores and new configuration of stores. If you could also give us some color on this new configuration of stores? And also in terms of asset sales or divesting, what can we expect going forward in terms of divesting of some assets.

I'll address the first one and Camille will tackle the second one. Okay. All right. So XP, right? Okay, Gustavo. Thank you for your question. As for the optimization of our footprint being quite straightforward, the answer is yes, we will close more stores, yes, just as we will open more stores as well. So that's what we do traditionally in retail and what we have been doing so far, as I mentioned, is we analyze the situation very thoroughly and very conservatively to be sure that we cannot really recover them before we actually decide to close them. As for geographies, they are spread out across the country. If you consider the weighted share of our stores distribution, we are quite spread across the country, but they have a specific feature. We are closing stores, which are usually very small outlets with a chronic inability to get the mix right. So those were the first stores to be closed. But we do, however, another issue with stores that are above 1,500 square meters, and we're also trying to find a model to more efficiently operate those stores. Some perform really well, others not, so we're trying to understand how that dynamic plays out so that we can adjust for those that do not perform. As for this new configuration for stores, we have been very careful not to lose control of our value proposition. I'll recap something I mentioned last year -- 2022, actually, who our physical clients are. They are a [ BC ] income bracket class above 18 years of age from both January. So if we transform our stores into a very sophisticated environment, that would not make sense. That's not what we're looking for. At the same time, we're not looking to provide a place where there is no organization, we do not have a need distribution of asset items. What we're trying to get is to have categories that make sense to those clients, items that make sense to those clients. But above all, they need to be flexible so that we can adjust something which is key, which are promotions, sales, special sales, so to place in the front of the store on a daily basis, those categories which are going through a special sale, we need to be organized to do that, and that's where our new model stands. And that's not going to change. So the way we present the items it will be different, but based on the same essence, the ability to be more flexible to, as I said, work better with promotions and special sales. As to the sale of assets, we're talking about assets, which are part of our Judicial Recovery Plan and also assets, which will be sold HNT, which will be sold. And if an interesting partnership comes up, we also offer our Ame, our fintech assets also up for sale. But again, and this has been said before, there is no liquidation sales for those assets. What we're doing is trying to find good opportunities to divest from those assets. They need to have the best possible use of available cash or funds. Thank you.

[Operator Instructions] This concludes our Q&A session. I'd like to turn the floor back over to Mr. Leonardo for his final remarks. Please, you have the floor, sir.

Thank you. There was one final question, Camille, about -- Camille was it, Warren Buffett says that the most difficult crisis is that related to trust. So what is your plan to regain trust in the company on the part of the stakeholders.

Okay, trust is not regained only by talking. We are now driving a [ transitory ] ship, which moves very slowly. So what we're doing, and that's the way to rebuild trust is to gradually show where we are getting things right, where we are not. And make all our numbers available to all stakeholders and then try to deliver what we have committed to deliver by 2025 to go back to profit in 2025. Nothing outside of that right.

And this was the last question. Once again, thank you for your time. And once again, we are now back on track in terms of having updated numbers for the market, and we hope to meet you in Q4. On March '24, we will discuss Q4 2023. Thank you, everyone, see you then.

Thank you all for participating in this call. We hope this call was fruitful and see you next time. You may now disconnect your lines. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]