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

Okay. Hello, everyone, and thank you for joining ILC Third Quarter 2024 Results Conference Call. With me is Rosario Letelier, Chief Development Officer of ILC. I'm Gustavo Maturana, 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 5 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'll 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. Moving to Slide 5, we can see the macroeconomic context for third quarter 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 third quarter 2024, reflecting our 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 research return in [ EBITDA ], 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 [indiscernible] in the labor market, which is crucial obviously, for sustaining [indiscernible] activity and consumer confidence. Going 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've seen on the same quarter in [ 2023 ]. Finally the bottom right chart shows the monetary policy rate. The Central Bank revenues, it's in cycle, reducing the monetary policy rate to 5.25% by the end of the third quarter 2024, down from nearly 10% in late 2023. On Slide 6, we highlight some regulatory advances we have seen in the health care industry, in particular regarding Isapres. On May 2024, you may recall, we already reviewing our past conference call, the short loss of Isapres was prolongated in response to a Supreme Court ruling of November 2022. The main aspects of the law and the subsequent circulars are first, price adjustments to the unified Factors Table containing the Circular 343, which was effective from September 1, 2024. Second, Isapres, may not offer plans with prices below the legal contribution. Isapres also had to submit a payment and adjustment plan subject to an approval by the superintendency, which has to incorporate a refund proposal considering the implementation of the Factors Table ruling Circular 343. These have two main considerations. First, the maximum repayment period is 13 years. And also, you can consider the incorporation of an extraordinary premium that cannot exceed the 10% of the contribution agreed upon July 2023. Consalud already received an approval of this [indiscernible], which consists of 0.779 UF per beneficiary. And this considers a ceiling of 5% in the contribution of July 2023, which was below the 1, the low [ per meter ]. And 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 superintendency. Our considerations that are staying low regard the acquisition from the [indiscernible] until this reimbursed amount is already being paid. And also, there is a consideration for the IPSA Index, the remuneration for the next 3 years, which will not consider FONASA in its [indiscernible]. On the right part of Slide 5, you will see -- I'm sorry, Slide 6, you can see the table for each one of the Isapres, its ordinary premium approved by the superintendents. 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% to ILC HoldCo, which is the legal -- where we have this participation. Initially, Baninter granted us options to purchase the remaining shares and so, we could reach up to 100% ownership as of May 31, 2027. That's more or less 3 more years. Next on July 2, Banco Internacional completed its first bond issuance in the Swiss public market, the 3-year unsecured bond maturing on July 23, 2027, carries an annual coupon rate of 2.8%, 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 BNS portfolio in Tender #11, acquiring 6 male and 2 female fractions for reviewing of July 2024 until June 2025, further strengthening its marketing position. Lastly, Vivir Seguros secured a portion of the SISCO Portfolio Tender #7 acquiring one of seven fractions at a rate of 1.73%. And in Tender #8, it acquired two fractions at a rate of 1.84% for the next year. We will also like to highlight that ILC has achieved a major milestone in sustainability, ranking fifth place globally in the financial nonbank industry in 2024 in the Dow Jones Sustainability Index. Our score improved to 73 points, placing us in the 99 percentile, which is an important milestones to our continuous focus on sustainable practice. This marks a significant achievement as it reflects a 62% improvement in our scores since our entry the index in 2016. This year, ranking reinforces our role as a leader in sustainability with the financial -- within the financial nonbank sector and underscores the strength of our long-term [indiscernible]. Slide 10 refers the 5 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 business as we engage in and insurance, strong financial position. As we just mentioned, we work with ESG values and metrics across our activities and subsidiaries. This [indiscernible] framework relatively supports our workers to be leaders in creating social economic value that improves people quality of life. Slide 11 highlights the consistent returns the company has achieved over time, fully aligned with our [ risk strategy ] 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 business. For third quarter 2024, we record a profit of CLP 57.8 billion, a significant increase compared to third quarter 2023, which posted CLP 35.8 billion. This increase of nearly 62% was mainly driven by the improved performance of Confuturo, AFP Habitat and Vivir Seguros. It's also important to note that during the second quarter of 2024, we reported a onetime loss of CLP 31.7 billion, as I said 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, Habitat, Banco Internacional, Vivir Seguros, and Red Salud. Confuturo saw improving investment performance, primarily driven by fixed income and investment funds, along with the release of impairments, which resulted in [ number ] of nearly CLP 25 billion. Habitat experienced a revenue growth along with the increase in average taxable income and also an improved financial market performance, resulted in higher return for legal reserves. In the health sector, Red Salud 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 the decrease in beneficiaries, partially offset by reduced impression costs. Lastly, Vivir Seguros show a high result, mainly explained by the performance of the SISCO #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 #15. As of September 2024, Banco Internacional commercial loans grew by 11%, but above the industry, 1.7% growth. Commercial loans (sic) [ Consumer ] grew by 42%, significantly exceeded the industry 3% growth, mainly driven by the growth in out of [indiscernible] 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 3 key areas: Expanding Its presence in large cooperations for developing its retail banking segment and diversifying its products and funding sources. As shown in Slide #16, Banco Internacional has advanced in developing in retail -- 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, along with an additional 8,000 customers acquired over the past 12 months in the resubsidiary. These developments have expanded the bank's retail customer base, positioned it for continued growth in this segment. The 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 nonclients. Importantly, the bank has formed a strategic partnership with Mercado Libre and Portalinmobiliario, DirecTV and Tenpo, among others, to create cross-selling opportunities between loans, checking accounts and time deposits. We move to the next slide, Slide #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 rate hedging at the end of FCIC program, along with higher interest expenses, mainly driven by USD 255 million from the IDB at the end of 2023 and a 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 '24. The Treasury results fell by 20%, mainly due to lower gains on sales financial assets and loss on foreign currency derivatives, partially offset by higher exchange rate gain. All in all, the gross operating result declined by 16% compared to 3Q '24. Operating expenses amounted to CLP 22 million in 3Q '24, a 7% decrease compared to the same period in 2023, but this reduction was mainly explained by a positive adjustment of CLP 2.1 billion in the intangible assets related to the acquisition of Autofin. This was partially offset by an increase in administrative expenses of CLP 2.6 billion. All in all, mainly due to a decrease in the gross operating result, the operation -- the operating efficiency ratio for the third quarter reached 53.8%, 544 basis points higher than 3Q '23, explained by, as I mentioned, lower operating income. On the next slide, on Slide #18, we can observe risk expenses have decreased during the period, mainly explained by a lower provision for commercial loans, along with higher leases of written-off loans. Total risk expenses decreased to CLP 6 billion in 3Q '24, down from CLP 10.8 billion in 3Q '23. Provision expenses of our gross operating income reached 14.8% compared to 22.1%, same quarter last year. So September 2024, the NPL reached 2.4%, representing a 14 basis point decrease compared to the same period of the previous year. It 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 #19 shows the evolution of Banco Internacional profits and ROAE over time. While the bank has shown sustained growth in profit historically, for 3Q '24, there was a decrease in profit compared to the same quarter last year. Banco Internacional profit for 3Q '24 decreased by CLP 0.8 billion from CLP 11.4 billion in 3Q '23 to CLP 10.5 billion. This was mainly due to lower net interest -- I mean, 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 term profit growth with profit reaching CLP 54.7 billion and ROAE 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 #21, maintain the dynamics experienced during 2023. The average sales rate during the 3Q '24 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 -- I mean, 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 resonance and the long-term trend shows the annuity markets continue to show strong preference. In terms of premium volume, total pension industry premium reached 47.2 million UF in September -- in the third quarter of 2024, 26.6 million UF allocated to annuity premiums. Moving to Slide #22, we see that Confuturo's annuity premiums decreased by 8.3% in real terms. The offered rate sales for the 3Q '24, reached 3.45%, higher than the 3.2% regarding the same period last year. Confuturo [ chipped ] 12.5% market share in annuity sales position for in the industry for this quarter. Total net income -- I mean, total net premium income for 3Q '24 increased, reaching CLP 305 billion compared to CLP 153 billion during the same quarter last year. This increase was mainly due to higher revenue from the Disability and Survivorship insurance, Contract #11, which began in July 2024. This was partially offset by lower revenues from the annuities mentioned before. On Slide #24, we can see Confuturo's investment portfolio performance for the quarter. The investment result grew by 17 -- 18% quarter-over-quarter, reaching CLP 107 billion. 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 possibly to overall results, with local fixed income adding CLP 10.6 billion and it's important to mention, CLP 8.4 billion are related to impairment releases variation and foreign fixed income contributing CLP 2.1 billion. This was partially offset by lower returns from foreign investment funds in this quarter by CLP 2.7 billion. In the next slide, we see Confuturo results in 3Q '24 were mainly attributed to higher premium income and better performance of the investment portfolio. Confuturo posted a profit, CLP 28.4 billion in 3Q '24 compared to [ CLP 175 billion ] in Q3 '23. This increase was mainly due to higher D&S premium income, along with the improved returns from the investment portfolio and fixed income impairment release, were partially offset by lower nonoperating income. Regarding nonoperating income, it decrease was explained because -- due to -- I mean, it decreased by CLP 31.4 billion, resulting in a loss of CLP 17.3 billion. Of this variation, to discern billion corresponds to lower exchange rate and the indexation adjustment results in life insurance with savings, which -- to which [indiscernible] is reversed and has not impact in the Confuturo's profit. Regarding the company-owned portfolio, CLP 0.5 billion corresponds to lower exchange rate results while CLP 3.9 billion decrease is attributed to lower returns from indexation adjustments. Overall, Confuturo's ROE for the last 12 months, ending September 2024, was 15.2% higher than 12.4% recorded in the same period of 2023. Regarding AFP Habitat, as shown in Slide #26. Revenues increased by 4.8% in 3Q '24 compared to the same period last year, reaching CLP 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 Habitat contributors compared to the same period last year. The average taxable income for EBITDA contributors in September 2024 was 20.6% higher than the industry average. This was partially offset by 3.6% year-over-year decrease in the number of contributors. Moreover, legal reserve returns increased by CLP 34.9 billion, reflecting a better performance from funds with higher exposure to fixed income markets from C, D and E. As shown on Slide #27, AFP Habitat has maintained stable profits over time with profit reaching CLP 167.1 billion for the last 12 months, ending in September 2024. While looking at 3Q '24, profit increased by 108% compared to the same period last year, rising from CLP 25.4 billion in 3Q '23 to CLP 52.6 billion in 3Q '24. This increase was primarily driven by higher returns on legal reserves due to the better performance of financial fixed income markets. On Slide #29, if we move to the health sector, we observed a more complex mix in Red Salud with an increased activity in dental services contributed to higher revenues. Revenues reached CLP 186.2 billion in 3Q '24, a 9.1% increase compared to the same quarter of the previous year. Revenues from inpatient, outpatient and dental services grew by [ 95% ] and [ 8%. ] Starting with outpatient and dental activity. There was a 13.8% increase in dental consultation, rising from 83,200 in 3Q '23 to 94,700 in 3Q '24. 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 the [ combinate ] with a more complex case mix. The bank occupancy rate was 74% across the network compared to 67.4% in 3Q '23. 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, and regional hospitals recorded the strongest growth with a 20% increase in revenue, reaching CLP 44.8 billion. Slide #30 presents Red Salud's EBITDA breakdown. For 3Q '24, EBITDA increased by CLP 5.9 billion, reaching a total of CLP 20.9 billion, up from CLP 15.1 billion in 3Q '23. This growth was primarily driven by better mix of services in the inpatient sector, increased dental service activity, alongside improved efficiency in personnel expenses and medical fees. This led to an increase of CLP 2.8 billion in the quarterly EBITDA of 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 3Q '23 to 11% in the 3Q '24, driven by better operational efficiency, mainly in hospitals. As we have highlighted before, Red Salud 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 3Q '24, FONASA represented 48% of Red Salud in revenues. And if we see the last 12 months, this share reached 51%. This reflects Red Salud's strategy to diversify its source of income and reduce its dependence on the private insurer, ISAPRE. Slide #32 shows Red Salud EBITDA and EBITDA margin evolution over time. Red Salud's EBITDA continues to show a sustained high level, reflecting strong performance in both inpatient and outpatient services. For 3Q '24, EBITDA reached CLP 20.9 billion, representing a 39.1% increase compared to 3Q '23. The highlight -- the EBITDA margin also improved, rising from 8.8% in 3Q '23 to 11% in 3Q '24. During 3Q '24, results were driven by 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 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-on-quarter, in line with the industry drop. Consalud's revenue dropped by 15% quarter-over-quarter from CLP 159 billion in 3Q '23 to CLP 188 billion in 3Q '24. Consalud's cost decreased by 4% quarter-over-quarter, mainly due to a 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, ISAPRE Consalud posted a quarterly loss of CLP 6.2 billion compared to a profit of CLP 9.7 billion recorded in 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. Vida Cámara, the contribution marketing for the health and life insurance increased by CLP 0.7 billion compared to 3Q '23 driven by the growth in beneficiaries and investment results. In terms of growth, premium income rose by 23% due to an increase in beneficiaries and lower account receivables 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 3Q '24 compared to 87% in 3Q '23. Vida Cámara reached a quarterly profit for the third quarter of 2024 of CLP 560 million compared to CLP 872 million recorded in the same period of the last year. Now if we move to Slide #37, we will see the financial position of ILC and [ liquidity ] level. Concerning ILC debt and liquidity structure, the company achieved a net financial debt-to-equity ratio of 0.29x. 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 hits from foreign currency pressure of its bond, 144A, placed in the U.S. market. Slide #38 is -- shows the evolution of ILC stock price, something that is very important for us. ILC's 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 rub 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. Going 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 the Confuturo's results. In AFP Habitat, the operation result was driven by an increase in the average taxable income per contributor. And additionally, we saw a stronger performance of financial fixed income markets and their impact on the reserves contributed positively to the overall performance of AFP Habitat. 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 health care coverage costs. On the other hand, at Red Salud reported stronger EBITDA with the early 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 results, primarily driven by its financial subsidiaries, Confuturo, Banco Internacional and AFP Habitat, along with a solid performance from Red Salud. 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. And my apologies because I joined late, maybe you have touched on this already. In terms of the banking business, I mean 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?

Carlos, thanks for your question. I mean, 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. And we have -- we think we have been very successful in this organic pass-through. And 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 Banco is continuously looking for any opportunities like Autofin, which is a financial nonbank with a large base of customers that in a way, merge what the base of products that the bank has. But as they are looking for those opportunities, 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, opportunity in the right timing to speak of.

Okay. And if there are no more questions, perhaps one on the AFP business. And 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 Habitat?

Regarding the pension reform, there are no main changes in the last period. Discussions surrounding pension reform in Chile, I will say remains ongoing. And the main focus of the rate cuts largely stayed at the same. On the primarily 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. So the one is presented in November 2022. The [ core elements ] of the reform, such as the solidarity contribution remain unchanged. Well, 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 2 months. The debate is still centered around the same core issues, as I mentioned. It is also important to highlight, in this business, pretty something, some outcome is challenging because the problem are eventual implementation of the reform will depend on political negotiation and timing.

Okay. But then -- so to be specific, there was also a proposal to concentrate the administrative part of the payments of patients 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 the outcome because the approval and the implementation of the reform will depend on political negotiation and timing on the -- of this. On -- for the -- for your first question, there's -- I will say there's a debate on the benefits that any of the proposal that the government refers could have. I do not know if you...

Yes, there has been a debate regarding the benefits of the centralization that illustrating activities with no evidence of efficiencies -- quantified efficiencies on this. But as Gustavo have said, I would like to reinforce that all this discussion remains open and has timings of every political discussion that we have seen also in the past.

I don't know if there's another question. I don't have -- more people asking. Remember, you can write the question if you don't want to talk in the platform. Okay. If there's no more questions, this concludes today's presentation. Before end the call, I would like to extend our 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. This will be -- I mean, if you want to participate, you can write us to our IR contract, which is in the invitation of this call. That's everything for today.

Thank you very much for attending today's call.

If you have further questions, please free to contact our IR team. Thank you for attending the call for [indiscernible]. And we hope you can join us next month in the Investor Day. Goodbye and see you in December.