Inversiones La Construcción S.A. (ILC) Earnings Call Transcript & Summary

Hello, everyone. Thank you for you for joining ILC's Fourth Quarter 2023 Results Conference Call. Today with us is Pablo Gonzalez, ILC's CEO; and Rosario Letelier, Chief Development Officer of ILC. 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. Pablo, you can start with the call.

Thank you, Gustavo. Good morning, and welcome, everyone. Thank you for joining us on this, conference call. We will talk about the results and the main milestones we achieved on 2023. To start, maybe talk a little bit about the results. As you may see in the chart, we closed 2023 with a CLP 182.6 billion. This is an historical recurring result for ILC with an ROE, that is close to 20%. This is an outstanding result. It's important to mention that we see the long-term return on equity for ILC more in the area of 12% to 13%. And this result represents close to 25% over the bottom line in 2022. This is part of what we call our growth and diversification turnaround process, which we think ended in 2022. In terms of the composition for this result or the breakdown, you may see in this chart all the contribution from each subsidiary of ILC to this result. The main milestones in 2023, in the case of Banco Internacional, we took control over Autofin, the auto finance company we acquired last year. And we made a capital increase of CLP 25 billion over the year. This is something that was planned to support the growth pace of the bank. On Confuturo, we will speak a little bit about how the market or the annuity market recovery from the last -- from the previous years. The performance of the alternative asset portfolio. We started, as we have mentioned in the past, private equity plan investment 10 years ago, and we are now harvesting the maturity phase of that decision. In the case of the pension funds, we are still in the process of restructuring our operation in terms of being able to offer to our customers alternative products for these savings out of the mandatory saving products of the AFP. We started a branding process with Prudential. Prudential allowed us to use their brand on mutual funds here in Chile and in Peru. In the case of Red Salud, we started a very strong alliance with Cleveland Clinic to improve our operations, the quality of our processes and the network process or the network consolidation process that we started 8 years ago is continuing on track. In the case of Vida Cámara, you will see that we have developed during 2023 a new supplemental policies or insurances for individual. That's something new. This company was very focused on pool group products. We grew substantially in 2023, much more than the industry. We grew in terms of the number of beneficiaries by 33%. And in Consalud, you will see much better results due to the lower loss ratio. And at the same time, this lower loss ratio was the result mainly of increasing fees, which, at the same time, the main consequence of that was that we lost customers and the size of the portfolio of customers decreased by 20%. As I mentioned, if you think on ILC, we take a look -- a very quick look since the IPO. On the first stage of the IPO, we named that phase business consolidation. We did some acquisitions, some restructuring, some divestments in order to focus our efforts on 4 segments of businesses. We enter into a 5-year phase, we called growth and diversification process. And what we see for the coming years is a growth process. It's a growth stage, especially with focus on 2 of our businesses, Banco Internacional and Confuturo. For different reasons, Banco Internacional still have huge opportunities in terms of growth due to its size. And in the case of Confuturo, as I mentioned in the first or second slide, is that the market is recovering from a minimum or from a historical minimum size in 2020. Let's talk a little bit about on what is the composition of this result. As you know, and we have repeated this several times, we -- one of our main goals over the years was to diversify our source of income. You see on the chart that we ended 2023 with 4 different blocks representing 20% to 30% each of them. This was not the case 10 years ago. We were very, very dependent on the AFP on the pension fund business. And something that we are starting to communicate is that, on the long run, we are switching our goal of having 1/4 of each of the businesses contributing to the result to 3 businesses or 3 areas of businesses contributing 30% each of them, more or less, and health 10%. Why is that? It is because we see -- our view is that we -- the growth rate on the annuity and on the bank business is going to be higher than the other 2 businesses, pension and health. Let's talk a little bit about on each of the division -- on each of the businesses. On the banking area, you see on the top of the chart, the growth rate of the industry, which is the dark blue line compared to the light blue, which is Banco Internacional. And you see that Banco Internacional is very flexible. We grew a lot just after the -- or before the pandemic. We catch up with the industry during the pandemic. And over the last 18 months, we again increased our growth rate much more than the industry, as you may see in the chart. So again, Banco Internacional is growing much more than the market -- than the industry. And it's very flexible in terms of adapting its strategy depending on the market conditions. Other relevant elements, sometimes we don't see -- we want to compare our results and everything with previous year. But if we take a couple of years and we compare the bank since the acquisition, at the end of 2015, you may see that on commercial loans we multiplied by more than -- close to 4x our market share. On consumer loans, we multiplied more than 11x our market shares -- our market share. And in mortgages, 2.3x what we were at that time. So in summary, the growing process of the bank over the last 8 years, it's been outstanding, and we continue on the same path. Some metrics on solvency indexes, we are very similar to the industry. On collateral coverage, we still have a strategy in which we have much more collaterals than the average of the industry. On non-performing loans, very similar to the industry, there is some gap there, but it's because of the collateral. Remember that the non-performance loans ratio consider the whole loan. There is no adjustment on collaterals. But if you adjust that 2.9% by collateral coverage, you will see that we are below the industry. And in terms of credit risk, we improved on the domestic side from a single A risk rating to AA and AA- rating. And from the international standpoint, we didn't have risk rating and now we are BBB+ and BBB by S&P and Fitch. Again, same story, we closed the gaps with the industry. We acquired a bank in 2025 -- in 2015, sorry, that was far away from the industry in any metric, in any ratio you see. Now we are on the average of the industry and in terms of performance, very close to the top performers of the industry. More numbers, we are growing on the retail segment. Remember that the story when we start a couple of years ago, was very focused on the commercial side, but we are open the room for the retail with a different strategy. A digital approach. You may see that in 2022, we didn't have any checking accounts or just a few checking accounts on the retail segment. You see the numbers -- the figures there. On consumer loans, the same thing, without the size of the bank in 2023. In deposits, we almost doubled in 1 year in terms of number of customers. And in credit cards, we increased by 40%. All of this made under a strategy that is very leveraged on digitalization process of digital products. So without entering into the classical retail segment strategies of investing a lot on the branches, on sales force, on brand, this is fully digital. We have a lot to tell you about how and what we have done on that side of the equation. On the commercial segment, we grew 40% in customers last year, 30% in line of credit, almost 3x in cash management or 3x in Comex. So again, more figures -- the more figures you see, the more strong the conclusion that the bank is on the right track on our -- under our strategy. In terms of profits, the gross operating result grew by 17%. A portion of that, which is in the light blue segment of the bar is the acquisition of Autofin. But when you see the dark bar, you see that the core business of the bank or taking out or excluding the acquisition grew. In terms of risk expense, very similar to the previous year, except again for Autofin, which is something new. On the efficiency ratio, we gained 160 basis points. And when you see all of this reflected on the result of the bank, we ended up with a historical result of the bank, an ROE of 18%, more than CLP 55 billion of net income. So we feel that the bank, again, is in the right track. We are supporting that. And we expect the bank to contribute to ILC more than what its contributing now. In the case of Confuturo, the first relevant thing here, as I mentioned in the beginning is the incredible recovery of the market. You see on the top of the graph, the gap between the annuity rate and the programed withdrawal rate, which is one of the main variables that determine the size of the market. And on the bars, you see how the market went down during the pandemic for different reasons, the withdrawals from the AFPs, the uncertainty and people waiting for the decision of retirement. But when the pandemic ended, you see that the people started to choose more annuities, the market grew, and we are in a market of USD 105 million, which is similar to the best years before the pandemic. We grew a lot again on 2023, 150% in terms of annuity premium compared to an industry that grew 41%. Some changes we have mentioned in the past that are relevant for this market recovery. The first one is that the requirement for being eligible for annuity change in January 2022. So in other words, more people now is eligible for the annuity product. And on the other side, a new product that was launched in 2022, is what we call the scale annuity. Scale annuity is an annuity in which you can increase the amount of the pension for the first 5 years, up to 2x the annuity. So in other words, it's a product that is very competitive to the program we grow, despite the gap on the interest rate you see as is the moment now. So we are very confident that these markets continue to be a strong market, a growing market. And with our flexible strategy, you see in the chart, of being able to sell more or less depending on the investment opportunities we see, you can see that our market share lies from 7% or 8% to close to 15% without changing the company, without moving the sales structure, the sales force, which is key for our performance. This is another way to explain what I was mentioned. When you see the evolution of the channels we used to sell annuities, you may see that we increased a lot what we call the direct channel. This direct channel is a channel in which the customer go directly to the company through the call center, through a branch, through the website without an advisory, without a sales agent. This is something good for the customer because the pension increase. There is no fee. There is no commission on that. And on the other side, allows us as a company to be more flexible and to no -- not to be so dependent on the sales agent. You may see that the company in 2018 had close to 300 agents. Now we have 80. And we sell more annuities now than 5, 6 years ago. And to the right, another key element of the company is the efficiency. This company -- we doubled this company in terms of AUM since the acquisition at the end of 2013. And when you see the SG&A in real terms in Chile and U.S., which is the dark blue bar, you see that the company SG&A is exactly the same over the last 6, 7 years. Even though we are managing more than double or more than twice the size of the AUM of previous years. And when you translate that to SG&A over AUM, in other words, how much we are spending based on the size of the AUM, you may see that we improved. In terms of the efficiency, where we were spending 66 basis points over AUM in 2018, now we are spending close to 40 basis points. So all that gain in terms of efficiency is -- goes directly to an improve on the spread we are making on this business. In terms of investment portfolio, I would say that the main changes or the main reallocation of this portfolio were done on previous years. We are now in a phase that is more fine-tuning. We see opportunities on the real estate side. We see opportunities on the lending side. And with the current scenario of interest rates, we see much better opportunities on -- even in domestic fixed income, which was not the case on the last 2, 3 years. This has been key for the success of the company, trying to reallocate the assets, trying to invest more on stable assets. CPI adjusted with more deals than the fixed income -- than the domestic fixed income. And when you go to the results of the company, this is a chart that shows the results since the acquisition. You will see that before 2021, this company or the long run of this company was in the area of CLP 40 billion. Now we see the long run of this company in the area of CLP 70 billion to CLP 80 billion, very similar to what was the case in 2023. 2021 and 2022 were outstanding years and very pushed by the result on private equities. We see more regular and recurrent profits on the coming years, on the coming months. But when you see the ROE, we acquired a company that was making 0. We made some improvements, being able to reach 5% to 9% of ROE. Now we are in the area of 12% to 13% of ROE. So it's close to a bank, which was not the case before, and which is not usually the case on this industry. On the pensions side, brief summary on our operation. We are -- we have presence in 3 countries, as you know, Chile, Peru and Colombia. We are very market leaders in Chile in terms of size, in terms of the segments. In Peru, our strategy there is to be very efficient. So we are very -- the performance of our funds, together with a very efficient operation, gives us the capacity or the ability to compete there. And in Colombia, this acquisition was -- we took control of that company at the end of 2019. We have been working on a process with a focus on redefining the commercial strategy. Remember that in Colombia, the disability and survivor insurance is part of the business. We have done a lot of improvements on that, but there is still room for making that operation more profitable in the coming years. If you put these companies together, we are the second player in the Andean region with close to 4.6 million affiliates on AUMs of close to USD 70 billion. Let's take a look. There are a lot of figures there in this chart, but some comments on Chile. Chile is a mature business, and we are market leaders. But even though we are market leaders on this mature business or industry, we were able to increase the taxable income per contributor. In other words, the strategy that Habitat started 10 years ago of moving to mid- to high-income customers is -- continue to work compared to the industry. And we are not growing in terms of contributors. Why? 2 reasons. One is because of the auction of newcomers to a labor market. Remember that in Chile, since 2009, there is an auction every 2 years in which all the newcomers to the labor market, it goes to the lowest fee AFP that won the auction. So then that makes us very difficult to gain organic growth. And on the other side, more than the number of contributors, what we focus on is the taxable income of the total contributors, meaning that if we lose 1 contributor that is making $1,000 and if we gain -- if we lose 2 contributors making $1000, and we gain 1 contributor making $2,000, that's better for us. When you see that in terms of the number of contributors, it's not a good figure, but when you see that in terms of the income, it's a good deal. Efficiency. We are the most efficient operation in the country. This is a very -- it's a strategic focus of Habitat, the efficiency. And when you see all of that translate into the profits, excluding the reserve result to avoid volatility on the reserve, you see that the income of Habitat Chile increased by 9.5%. Some comments on Peru and Colombia. On Peru, unfortunately, withdrawals in Peru -- remember that in Peru, we charge on AUM. It hurts us -- all the companies in the industry. Peru now is in the middle of 7 withdrawal process that is expected to be approved. We don't know, but it's expected to be approved. So every time you have withdrawals, you have less AUM. Given that we charge based on AUM there, the revenues move down. In terms of Colombia, we increased their revenues on 2023. Remember that in Colombia, the fee is the same for all the companies. It's 3%, but the result of our commercial strategy and the result of our capacity to restructure the portfolio of customers is giving us good results. And if you put everything together, the operation of Peru and Colombia of 2023, in Peru, were very similar to what they were in 2022. And in Colombia, a little bit lower, given to legal expenses that are arising and arriving from different cases of customers. Colombia is a very judicialization or -- judicialized country, which is hurting us. In terms of the project, we have 2 focus on growing. One for a potential 4th market, as we have mentioned in the past. And the other one is the development of voluntary products on the region. In Chile and Peru, we are starting to use the Prudential brand. We are developing an asset management company. It is an organic growth. It's going to take some time. As we have mentioned in other opportunities, we don't expect this to be relevant in terms of the bottom line, but it's a very strategic movement based on being able to capture customers that they want to go with the voluntary savings or different alternatives -- or different investment alternatives other than the 5 funds offered by the AFPs in Chile and the 3 funds in Peru. On the health side of the equation, I will switch to Rosario to talk a little bit about Red Salud, Consalud and Vida Cámara.

Thank you, Pablo. Hi, good morning, everyone. And as Pablo said at the beginning of this presentation on the healthcare sector in Red Salud, we had a strategy -- sorry Pablo, can you -- thank you. We had a strategy based on 5 -- sorry, 4 phases, 3 of them already took place in the past 8 years. And now we are moving to phase 4, which is the consolidation of the healthcare network with the focus on having the same user experience all across the network and also in the -- all the medical processes. So the path and our vision to 2025 is more or less the same that the company has been performing and putting in place in the past 8 years. In terms of EBITDA and EBITDA margin, the company has moved from CLP 30 billion to CLP 40 billion neighborhood in 2016, 2017 to a neighborhood of CLP 70 billion in the past 3 years, which has shown also a very steady performance in these years, which also has a contribution in net profit as we will see in the next slides. In terms of activity levels, as you can see in the 2 graphs above on the left side, medical consultation and images, which are mostly related to outpatient services. Red Salud had shown about 5% increase in activity, which also has had a contribution in terms of revenues and EBITDA. And as you can see, we have a decrease in surgeries compared to 2022. We have to remember that 2022 was a year we've shown an increase on activities due to all the lag due to a pandemic of 2020, 2021. So it's a higher base of comparison. And also, we have seen a change in the complexity mix in 2023, which partially offset the decrease in activity in terms of revenues. In the graphs, in the below part of the slide, you can see the outpatient and dental centers, which showed an increase in EBITDA. And we have been performing well also in hospitals in Santiago and regional hospitals with marginal decreases on EBITDA margin due to higher cost increase, mainly due to personnel expenses because they are driven by inflation and real adjustments. And this is a very intensive in human capital -- this is an industry that is very intensive in human capital. On the insurer side, as you can see on the graph on the left side of the presentation, Consalud shifted its mix from private health insurance around 50%, now only representing around 40%. And the increase was mainly in the public health insurance, which is FONASA, that now represents around 45%. We think this is a shift in the mix of the company that was partially due to the pandemic and we had -- which has sustained in 2022 and 2023 and shows that Red Salud is a good substitute to a public health network and also has been -- has proved to be very cost efficient in terms of operating in this segment of revenues. When we see Red Salud before this shift in the strategy in 2015 compared to 2023, the company has almost tripled the EBITDA generation. And the mix has shifted taking more [ protagonism ] on outpatient and dental centers. And also, the company has improved -- has shown an improvement, sorry, in the hospitals in Santiago due to investment they performed in the past and has shown profitability in the past years. On the insurance side, here, you can see a graph which shows the evolution of beneficiaries from Consalud and Vida Cámara since 2014, where Consalud was around 80% -- represent around 80% of the mix. And as you can see in 2023, this mix is almost 50% each of the 2 companies. As Pablo mentioned in the beginning of this presentation, on Vida Cámara side, the company showed a growth above 30% on beneficiaries and also in premiums. And on the other hand, Consalud showed a drop on beneficiaries around 20% due to higher cost for the insurance. As you can see, Consalud is #3 in terms of beneficiaries and contributors in the market. And Vida Cámara is #4, which -- and the company has shown a dealership in this industry, considering the high increase that we already mentioned in the beneficiaries space. To close this chapter, we can say that here, you can see how the whole health sector in the company is composed throughout the years. In 2023, we reached CLP 48 billion in terms of net profit with a higher composition or participation of Consalud in this net profit, Red Salud around CLP 15 billion and Vida Cámara around CLP 1 billion. So on -- just to close, as we said before, Red Salud still showing higher levels of demand on the outpatient services with a reducing patient activity, but a more complex mix, which has shown also very good results in terms of EBITDA and net debt. On Consalud, we had higher revenues due to GES premium adjustment. And this has also an impact on lower gross ratio, and we also saw a reduced medical leaves, which has been a trend all throughout the year. On Vida Cámara, as we said, beneficiaries grew over 30%, and we have higher claims compared to 2022, that the company has shown very good performance throughout the year.

Thank you, Rosario. Let's move to some data and some information on our financial position. As you know, we have a very structured and well-organized amortization profile. We have -- our strategy is to have mainly 4 sources or potential sources of funds. One is the domestic banks. As you may see in the chart, we only have one bank loan going around, that is vesting at the end of this year. We have domestic bonds. We have the 144A bond that was placed in the market 2 years ago. And we also have a potential access to the private debt market in Europe and other countries that is developed. So we are very flexible. We have a lot of room with potential financing each of these sources. In terms of net financial debt, we -- is very similar to the one we had in the previous year. As we have mentioned over the last, I don't know, 5, 6 years, we don't have any plan to increase our net financial debt. We want to keep these levels of debt that gives us a net financial debt-to-equity ratio on the area of 0.3x. We have a lot of liquidity. The liquidity is coming from 3 different sources. One is the funds we still have in cash or in liquid assets that came from the placement of 144A bond 2 years ago. The use of proceeds of that of that bond mainly is to refinance debt, which is what we have been doing over the last 2 years, and we're still in that process with those funds. On the other side, there is an investment portfolio, what we call our investment portfolio is a very low risk, fixed income investment portfolio on Chile. It's a very historical portfolio. It's around USD 80 million. And what we call cash and equivalents, are gaps between the dividends we are receiving and the dividends we are paying to support future developments, future capital or equity needs that our subsidiaries may have. In terms of the performance of the stock, you know that 2023 was a very positive year in terms of the recovery of the value -- of the economic value of the company. If you compare the performance of our stock to our companies in the market is the top performer of the year, and if you compare the performance to the index return over the year 2023, it was more than 6x the return of the index. Dividends, we just announced on Tuesday, we released the proposal from the Board of Directors to the Shareholders' meeting in terms of dividend. And our plan is to pay a second dividend based on 2023 results of CLP 450 on top of the CLP 150 we paid last December, we ended up with CLP 600, which is a dividend yield of 6% on the -- sorry, 7% of the existing price. So we are still in the same track of having a dividend yield above -- the dividend yield of the index, which is the green line on the chart. And the other relevant element is that if you take and put together all the dividends we have paid since the IPO, not including -- without including the -- what we announced this -- or the proposal we announced this Tuesday, we have paid close to 80% of the value of the stock on the IPO. So we are still in the same commitment and the same delivery on the promise we made on being a very good dividend yield player compared to the market. Some wrap-up and conclusions on 2023 on the coming future. When you see our main plans and goals on each of the subsidiaries, you see that in Habitat, as I mentioned, a potential 4th market is something that is -- something that we would like to. Voluntary saving products, continue developing the offer outside the mandatory savings business. And in terms of the Andean region, we still see opportunities of consolidation on sharing best practices and gaining some synergies out of the 3 operations we have. Confuturo, organic growth is there. It's a consolidated industry. We are very strong there. We have a strong market share, strong size, strong efficiency that makes us very positive on taking advantage of this growing market. Investments is always the variable or the main variable for that business. So we're still looking -- and we are continuously looking for a value of the spread. And as I mentioned, efficiency is a key to succeed on our strategy of Confuturo. Banco Internacional, we still see a lot of room on commercial loans growing on that segment. Again, the market and the industry is continuing a consolidation process. We're very concentrated. So we see a lot of room for niche bank as we are. The digital approach to our customers is there. Probably the main challenge is to promote and to do more marketing on the products we have, but the solutions from a technological standpoint are there and are strong solutions. And there is always -- we are always looking for potential in organic growth given the size we have. For health, as Rosario mentioned, we're still in the process of the consolidation of the network. The Vida Cámara development over the last year is a very relevant proof that we are flexible, and we are prepared for regulatory changes, especially in that industry. And the alliance with Cleveland Clinic, I would say that's a great starting point to continue thinking on other alliances or to develop more of the alliance with them. This is a starting point, but we have a lot of expectations on the coming future on what we can do and develop with them on the coming years. So thank you for being here. We are very confident in the company. As we mentioned, we are very confident on the coming future. And I would say that we are proud of our results of 2023, which, as I mentioned, are the top results of the company during its history. I don't know Gustavo if we have some questions.

Pablo, thank you for the presentation. And there's a question from [ Donovan Keith ]. He asked for, what are your thoughts on the current pension reform in Chile and the impact on your company?

Well, the pension reform, as you know, there are 2 key elements on the pension reform. One is the ownership of the increase on the contribution rate or in other words, how much of the increase in the contribution rate is going to individual accounts and how much is going to subsidized pensions. The other key element are the reforms to the industry or to the way the industry is organized. On the end of January, the reform was -- some elements of the reforms were approved on the lower chamber, and it moves to the high chamber. But the -- let's say, the heart of the reform, which is, again, how much on the increase on the contribution is going to individual account and how much not was not approved. So the reform that enter into the high chamber is at, let's call it, a [indiscernible]. So meaning that the elements on what was approved in the lower chamber are not enough to have a discussion. So my view is that the discussion somehow is going to restart or to reset on the high chamber. The other element is that the support on the ownership of the increase on the contribution rate is very, very strong. Any poll you see on that, you will see that 70% to 80% of the people want the money on their own account. So they want solidarity, but without their money. They want solidarity with taxes. And that's an open discussion. But if you see the news, if you see the -- how the Congress is turning and is speaking on this, I would say that more and more is the center to right wing political block is very committed to protect the ownership. Why is so important then? Because if there is no agreement on the ownership, it's difficult to think on a reform, okay? And then we are entering into an election process at the end of the year and then next year. And so the discussion is going to continue on the high chamber. It's going to take time. This is not something private. This is in the news that the new president of the labor commission on the high chamber mentioned that given the type of bill that was approved from the low chamber, they need to reset the discussion. They need to hear expert, and they will take the right time and the proper time to do that. Gustavo, you are in mute.

Okay. Thank you, Pablo. There's another question regarding the mandatory health insurance. The question says, could you please provide us with an update on the regulatory situation regarding mandatory health insurance?

Well, again, if we put ourselves at the end of January, in this case, it's the opposite way, because it was the high chamber. The high chamber approved a law and was delivered to the low chamber. Different from pensions, the law that was approved in the high chamber is very complete. So the discussion in the low chamber is being focused on details and some indications and details to the law that was approved in the high chamber. What are the main areas of discussion? One, remember that there is a way to calculate a return that we don't share the criteria, but it's the law, it's a justice that agreed that to return some charges we made to our customers over the last 3 years based on what we call the risk factor table on the way we applied that, or the industry applied that. And there are different ways for that calculation. One way is to do the calculation on case-by-case and the other way is to think on our portfolio of customers, or a pool of customers and calculate this -- or recalculate these fees based on the pool. The difference between these 2 ways or these 2 approaches for the calculation is $450 million to the industry on one side and USD 1.2 billion -- or USD 1.4 billion on the other side. So in the high chamber, what was approved was the way to calculate this more similar to the $450 million. After that, a group of senators from the government -- from the government in coalition, they went to the constitutional court arguing that this part of the law was not -- was unconstitutional. The constitutional court delivered the result of that a week ago or 10 days ago. And they agreed that it was unconstitutional, not the calculation. It was unconstitutional this article of the law, because this article was not supported by the government, was supported by the high chamber. And in Chile, all the matters related to social security are exclusive from the government. That's the result of the case on the constitutional court is not that they made an opinion on the way that is -- the calculation was made, they made an opinion on the way that article on the law was introduced. So with that, we return to the discussion on how it's going to be the calculation. That's part of the discussion that is being taking place now. Last night, the government introduced new articles to the law. The most -- I would say that the most relevant is one related to -- after doing all these recalculations on the price or the planned price formula, there is a cap on the price. So nobody can pay more than 10% than that they were paying 1.5 years ago after applying all these adjustments. I would say that's the main one. What's the calendar for this? The voting will start next week on the low chamber. Given the dynamics on some parts of the law that were not approved, some were approved, so given the dynamic and let's call the legal or the Congress techniques, this will end up on a mix commission. A mixed commission is a commission of 10 Congressmen, 5 from the high chamber, 5 from the low chamber that they, at the end will agree on a law. So sorry for being so confusing on the explanation, but after this process, what we expect is that we will have a law at the end of April, beginning of May, okay? This -- we expect this to be a hard law. We, as a company, we will -- we are rethinking on redefining the strategy of Consalud to face this new law. And why the time line is that? Remember that there is a resolution from the Supreme Court that forced the government to implement this resolution as of mid-May. So if there is no law, they will have to ask for an extension. But our view and our guess is that it's difficult to have to receive an extension from the Supreme Court, given that the last time they gave an extension. The message or the wording on the resolution was very clear on -- it's not like this, but very clear in terms of -- this is the last one. So it might be an extension, but probably if it is the case that there is a law approved, but they need some days or some weeks to do the publications and to all the final legal process of a law approved by the Congress. So in summary, the discussion is being -- is under -- is being taking place. The voting process is going to start next week, and we expect to have a law at the end of April, beginning of May. Gustavo?

Okay. There's no further questions. Okay. Thank you for everything today. Thank you all for attending this conference call. If you have further questions, feel free to contact our IR team.

Well, thank you again for joining us, and as always, very open to meet and to have -- to address any questions you may have on the company. Have a great rest of the day.

Bye, everyone. Thank you very much.