JHSF Participações S.A. (JHSF3) Earnings Call Transcript & Summary

Good afternoon. Welcome to JHSF Participacoes webcast on the results of the third quarter of 2025. On behalf of the company, Augusto Martins, CEO; Breno Perez, CFO; and I, Mara Boaventura Dias, IRO, are present here today. The slide that this presentation is being simultaneously broadcast on YouTube and Zoom, which can be accessed at the website, ri.jhsf.com.br. [Operator Instructions] Before proceeding, we would like to clarify that any statements that may be made during this presentation regarding business projections are based on assumptions of the company's management and on information currently available. They involve risks and uncertainties because they are related to future events. Changes in the macroeconomic policy or legislation may also affect the projections reported here. Now I would like to give the conference over to Augusto, who's going to start the presentation. Augusto, please, the floor is yours.

Thank you, Mara. Good afternoon, everyone. Thank you very much for being here for the third quarter of 2025. It's a pleasure to be here representing JHSF Group that is really amazing that works 24/7, taking turns in operational efficiency and now explicitly in the presentation that we have prepared to you reporting our results. So starting the presentation, something very important. We are having very significant results, a very good performance with records. And as the nominal values that we are going to report to you is the quality with which it's been going on, quarter after quarter, we have been growing quarter after quarter in our operating results, not just as I said, historical level results, but also very good quality, which is the diversification of our businesses, operations and activities. This is a result that we are obtaining in the main blocks with historical levels, both in development and recurring income. So now starting our presentation, this is a quarter that the fourth consecutive quarter, we are reporting growth and a result that both in development where we have a historical high in development as well as advancement in our construction works and the margins that we practice. Also in recurring income, this is also a record level, the highest number that we are reaching in our operations. We are going to go through all of them, along 4 many quarters in a row, we have been reporting 2-digit growth, which is very significant for JHSF, and this has been for 8 quarters in a row, and we have records in many different lines. And this result once again consolidates the best result in high-income segment in Latin America. Now going to our numbers. Gross revenue grew 38% in the third quarter of 2025, a 33% growth in 1 month (sic) [ 9 months ]. So our adjusted EBITDA grew 77%, reaching BRL 708 million year-to-date and the company's net profit grew 118%, getting to BRL 800 million (sic) [ BRL 890 million ] in the first 9 months. It has been 4 quarters in a row that JHSF has been delivering significant growth in its consolidated results, not just in consolidated, but looking at recurring income, this is another record high for the company, the biggest performance ever in a quarter in year-to-date numbers. Gross revenue grew 30%. We reached BRL 1 billion in revenue. So adjusted EBITDA (sic) [ gross profit ] grew 40%. Our EBITDA (sic) [ adjusted EBITDA ] grew 33%, the adjusted EBITDA getting to BRL 452 million [ year ], and our net income grew 43%, getting to BRL 795 million in 2025. This is a new record historical levels, but the financial indicators in our recurring income segment. And as important as these face values, the results that we are reporting in recurring income. So going down another level in quality, its numbers in itself and the number two is the breakdown between all these lines. So we have the recurring income and another segment in development. And something else that is highly motivating is the breakdown of businesses that we have in the recurring income segment. More than 20 years ago, when the company went from development -- moving to development and recurring income. First, we just have -- we had shopping malls, then Fasano, then the airport and our most recent business of recurring income, which is JHSF Residences and Clubs. And all these results are mature and they have a share of our results that is significant, providing us even more -- improving our results, and this is the only system of recurring income in Latin America. The development of our businesses make us even more confident about the company's strategy in balancing 2 businesses of recurring income and real estate development that I'm going to mention to go over. So our first business of recurring income, the malls, pioneering the shopping malls, and we are above 2 digits for 8 consecutive quarters. We are leaders in the market in sales and occupancy rates. It's the biggest growth in the industry. So sales have grown 18% in the quarter and 14% in the year against an average of 2% in the year. This is significant leadership. It reflects the quality of our businesses. I'm going to explain, so Cidade Jardim Mall has grown 16% in our shopping mall businesses in the quarter and 22% in the year, we have the best occupancy rate getting to 99%. Our operations are fully occupied, reflecting the quality of our operations and the operational mix that we have and rentals have also grown above inflation with relevant indices. So the activities in our malls, and this operation is getting more and more relevant, both in growth and occupancy is the curatorship and the unique mix that we have in our shopping malls. JHSF for a long time has had specific areas allocated to mix and curatorship. It's a strategic department for us. And for many years, JHSF is a pioneer in fashion retail, which is to bring brands to Brazil in an exclusive way. And these 2 areas working very hard represent the operational success of our malls. Not by any chance, the main Brazilian and international brands choose our malls for their main stores, sometimes operating only in JHSF malls, and they choose our malls to develop their flagships with us. So as recently announced, Chanel chose Cidade Jardim Mall to have its flagship store with more than 1,200 square meters unique in the world. There are only 3 others in the world with everything that Chanel does just as Tiffany that chose Cidade Jardim Mall. And so it's the only store in addition to the store that they have on the Fifth Avenue in New York and it's Tiffany apartment where customers will be received with super special services, accessing unique services. Same thing happens with Dior, Prada and Hermès. So our malls with this unique creatorship of brands and also the unique creatorship of restaurants. So our malls have food courts. All our operations are connected to our gardens. So JHSF shopping malls are open-air malls and the restaurants complement our operation in a unique way, transforming our malls in lifestyle centers. So the JHSF's operation in shopping malls is developing them in a unique way in Latin America into lifestyle centers rather than shopping centers only. It's something unique that our system permits also combined with our restaurant operations and exclusive restaurants that we have, including Loulou, a very -- an important restaurant from Saint-Tropez in France. And so they are unique operations that we have as it happens with Makoto, for example. And then since the birth -- we have been working in a strategic way, and we are selecting more and more in exclusive way brands and operations to be together with us. So this advance is reflected in our results. Gross revenue grew 13% in the quarter and 17% in year, getting to BRL 297 million (sic) [ BRL 289 million ]. Gross income got to BRL 182 million with 9% growth in the first 9 months and adjusted EBITDA is BRL 150 million, a growth of 28% is the highest ever. In addition to our malls, we are advancing with our new operations. So we have a new mall in Boa Vista Village. The Town Center is a renovation of JHSF's unique system, combining our operations and this lifestyle center instead of a shopping mall, combining our operations. So -- and the construction is almost ready, and we are opening still this year, a very large open air with a very large area, many exclusive brands. It's a mall whose heart is a catholic church at the center of a small village and the gardens are organic vegetable gardens that will be connected to the store that is part of Boa Vista Village and connected to the entire JHSF ecosystem and the surf club and our hotel. And very soon, the school, Porto Seguro is going to be there just as Albert Einstein Hospital with their hospital, making it more and more complete. So Recently, we opened a health center inside Cidade Jardim Mall, an area of more than 2,000 meters of leasable area. And there is a new availability of services with a ski and snowboarding center and meeting -- serving our customers, making it even more complete and unique. In addition to Boa Vista Village, the constructions of Faria Lima Mall are underway. They are advanced. It's going to be the main mall in Faria Lima because it's not just a mall, it's a lifestyle center. And the operation of the shopping center, unique restaurants connected to this project, this multi-use area. We're going to have the first social club in the city of São Paulo, referencing the significant clubs in London and New York with high income that use it intensely these modalities. So in Faria Lima, we have the main point of Faria Lima in the crossing between Leopoldo Couto and Faria Lima, there's going to be a social club and also a hotel connected to that venture, another tower on top of that. So once again, the next project will certainly be a highlight in that region. This is a unique project with unique that only JHSF ecosystem has delivering to our customers. a complete operation for their lifestyle. Now moving to our next recurring income unit with hotels and restaurants, Fasano Group. This is another quarter of record, the largest EBITDA in the year, getting to BRL 60 million. Our operation remains -- continues to advance in a significant way. And this is more and more part of the fair prices of our operations. If we look at the advance of average area growing 13% and better say the average daily rates growing 9% and average cover grew 8% and our results grew 13%, getting to BRL 113 million in the year. We are very happy to announce these numbers. We are very proud of them. So a group such as ours has an increasingly more global operation internationally, and we have international recognition as an extremely significant operation in the high-income segment, reflecting the soft opening of our project in Sardinia, a beach club inside the JHSF project. This is the first time we are exporting this high-income ecosystem. It's the first time we went outside Brazil in Punta del Este which is very successful and now taking it to Europe, Sardinia a super important destination in high income destination for high-income segment. So a complete Fasano hotel designed by Israeli architect, golf course, Fasano Villas and then booths where -- and plots where people -- our members will be able to build private homes, private beaches. So now we are going -- we're taking to Europe to that destination, the unique ecosystem that we have. And we also have a village mall there, just as Boa Vista Village, retail operations connected to this ecosystem, taking to the customers that are there with us to service in all dimensions and we are very excited with that operation. This is going to grow twofold in the medium and long term. We have 5 new hotels contracted in expansion, Fasano Miami, Fasano Sardegna, Fasano Cascais, Punta del Este and new operations that we are going to announce soon, even increasing even further the operations of our group. Now moving to airport, our third business in recurring income. The airport has full of records during the quarter. Everything you see, all numbers are the best numbers ever. So it has grown 65% in movement in the quarter, growing 60% in the year. It grew 46% in the quarter and 43% in terms of liters of fuel that is the best -- the biggest Executive Airport in Latin America in terms of number of aircraft. It's the biggest airport in Brazil in terms of landing and takeoff in terms of private aviation. And we're now opening the fifth expansion with 4 new hangars, new yards and taxiway, and we get to 80,000 square meters. And we have 130,000 square meters of areas, including yards and hangars. And it is one of the biggest operators of executive aviation, both in SGO and MRO that is aircraft maintenance. It's one of the biggest in the world and increasingly more acknowledged by our customers with excellence in quality. Because of this success. We opened the fifth expansion sold out, and we have a sixth expansion with another 3 hangars and patios contracted for 2026, and our area is going to grow twofold. Our current operation is going to double, which provides us huge operational leverage. So we are very happy in the results and especially with the prospects of future prospects of growth. We are going to continue to be responsible to taking on and occupying the expansion so that they have full use, they're fully occupied and that we have increasingly good results. Now moving to our most recent in recurring income segment, which is JHSF Residences and Clubs. It's very relevant for us today. This is a business unit that connects with customers in a unique way. So this makes them stay with us for a long time, good quality of life. And most of our interactions with our customers takes place in these clubs and residents operation. So JHSF, we have a specific dedicated department for entertainment and lifestyle of customers that is related to the clubs to provide unique experiences and to provide even greater quality in processes and intersection of these customers with us and this activity in these unique clubs that we are developing, and this product is focusing on high-income customers and the performance also has records. We have 97% occupancy rate for these units, practically our entire inventory is leased, more than 40 new units leased in the third quarter. We have almost 140,000 square meters allocated, showing the size and the share that we have in the investments that we invested to develop this portfolio that provides increasingly encouraging or exciting results. We grew 138% in gross revenue, getting to BRL 165 million in the year. We grew 134% in gross income, getting to BRL 142 million and adjusted EBITDA grew 120%, getting to BRL 130 million in the year. So this is a result of the success of our clubs, the of membership, both in São Paulo Surf Club that we are already operating the pool for our customers for a while. And now later this month, we are going to open the entire club. So in December, São Paulo Surf Club will be fully operational. And the other clubs, Fasano Tennis Club is connected to this lifestyle center of Cidade Jardim that is exclusive for members with Fasano. So this is a [ record ] club, unique operation in retail members only, and this is a huge success due to the perception of quality and details in the finish that it has. So the advance of these 2 clubs provide us these amazing numbers and the speed at which this unit is moving forward. And this is an activity that we will look after and expand further and further. There's new activities that are going to come in the next months. New clubs will start operating. So every operation that we open at São Paulo Surf Club and Fasano Tennis Club, we are going to have a new club in Boa Vista Village, Boa Vista's Golf Club exclusive for members and very shortly in Faria Lima and then [indiscernible] in the lifestyle center that is going to be our project in Faria Lima that will pioneer many musical activities, restaurants and everything with unique curatorship that is going to add more and more flow and results to this unit. Now as I said in the beginning, the company is very, very happy, very motivated because both in recurring income and in development business line. So in development business line, aside from the pandemic, is the highest sales volume for a quarter with a growth of 36% compared to the second quarter of 2025, getting to BRL 400 million sales contracted. We get to a gross result growing 53% in terms of gross income, reaching BRL 455 million in the year. And then gross profit, we grew 137%, getting to BRL 342 million. Adjusted EBITDA grew 131%, getting to BRL 291 million. The success of real estate development operation is a reflect of the strategy that the company has been adopting for some time to strengthen further and further its recurring income business line so that we can improve further and further recurring income business line to control our launches, to control the offer of products and especially to increase even further the quality of this project. Our apartments and homes are delivered almost ready with everything ready at a very high level of detail. So the strength of the recurring and the results, so the company is more and more accurately. Moving forward with our projects, looking at the economic cycles of the company so that we preserve the value of our inventory, our operations and obtaining the highest margins in the market. So we have an increasingly better control of quality. We are managing inventory in the offer. Quarter after quarter, we are demonstrating that we have the right strategy, balancing risk and speed of launches for our operations that is reflected in the unprecedented numbers that we have had this quarter. Of course, this number is also a consequence of our unique projects that JHSF developed with very exclusive architecture and design, exclusive suppliers that is reflected in our results. We are moving forward with our projects fast Reserva Cidade Jardim is advancing. The construction is moving forward, very advanced and all our projects are very strong. And this quarter was very motivating for us, reinforcing and proving how good our strategy is. Before giving it over to Breno and starting more about the capital, I would like to stress that the company's approach of having a unique ecosystem, the strength of the connection of these brands and businesses, customer service, these lifestyle centers, quarter after quarter, this it has confirming that we have the right strategy showing that the 2 business lines, both Recurring Income and Real Estate Development are advancing with mutual contribution between the 2 business lines, and this is increasingly more reflected in the margins of our business, which means that we are on the right path. Breno, could you please continue addressing the capital structure of the company that has been making it possible for us to have these excellent numbers.

Thank you, Augusto. I would like to show the continuing work in terms of liability management. In the last year, we were capable of raising about BRL 3.2 billion in the capital market. This was our inflow. At the same time, we could reduce the cost of the debt to the lowest levels ever, and we could also increase the duration of the company's debt to 5.7 years. It's also important to highlight that today, the breakdown of allocation of the debt in the capital market, about 95% of the company's debt is the capitals market, demonstrating the confidence of the capital market in our operations and also as we are delivering our results through our financials. And we have a level of average considering the investments that we have made in the last years that is very okay, very good. This is an indicator that we really monitor. So our net debt we have -- so net debt over EBITDA in the last 12 months is 1.88x and net debt over net income is 0.38x. A year ago, we had a cash coverage of 1 year. And today, we have approximately 5 years of cash coverage. So this EBITDA with this capital structure has made us -- has provided and made it possible for us to have the major investment that we have been having to increase the Recurring Income business. So I would like to mention our deliveries in 2025, quite a few, not. So we have had the hub of offices in the power plant. This is where our office is. We also delivered Fasano Tennis Club, the last club, the last one that we have just recently delivered. We have Fasano Al Mare Beach Club in Sardinia. We have opened new 4 hangars plus yards in the airport totaling 130,000 square meters. At the end of this month, we are going to open São Paulo Surf Club, very close to where we are in Cidade Jardim Park. And before the end of the year, we are going to open Boa Vista Village Town Center, our new shopping mall in the year. In 2026, with lots of things in the pipeline, too. We are going to expand the airport again with another 3 new hangars and new yard areas. We are expanding the ground floor of Cidade Jardim with exclusive stores, as Augusto said, many changes that we are implementing in the mall to make it -- to be able to keep it in a way, a super exclusive shopping mall that we have here, new phases of São Paulo power plant and Phase 2 of the power plant. And the new JHSF residences, the new unit that we have built very successful our homes for lease that are new homes getting into the portfolio because we have a waiting list in some projects. And we have Phase 2 of our Fasano Hotel in Sardegna. We are going to open the first phase. We're going to have a soft opening in 2026. For 2027, we have the amazing mall in Faria Lima, Faria Lima shops, very exclusive, very differentiated with unique experiences in addition to super exclusive brands. We also have a few international hotels that will start operating, Fasano Miami, Fasano London, La Barra, a new hotel in Punta del Este. We have the new phases of Fasano Sardegna, Fasano Cascais and Fasano Cidade Jardim that will be ready after 2027. Also because of demand that we are monitoring closely for the airport, we are expecting new expansions of hangars and patios. We're also going to open the new Grand Lodge Hotel in Village, Grand Lodge will be ending at the end of the year. There are some deliveries scheduled to and we are going to have new JHSF Residences is getting into the portfolio. As you can see, there is a lot. A lot has already been delivered, and there is a lot in the pipeline. So the company has been investing continuously and the results that we have been producing that makes us very confident to continue on this path. On the last slide, we have a little bit of consolidated recurring income because many people print to analyze the numbers. So this is an overall wrap-up because we have already explained lots of details. Thank you so much. We'd like to thank everyone. And I would like to give the floor back to Augusto.

Thank you, Breno. So as I said in the beginning, this is a very special quarter, really emblematic because it's not just in terms of our business, the results of our businesses. As I said, we are setting records in many business lines with very important advance, but also the company's capital structure and also huge dedication and major focus on this approach, leading the company to the lowest spread and capital cost. So very significant increase in duration. So it's almost from 1 year to 5 years. So a good leverage that is responsible considering the amount of the investments, 1.8x (sic) [ 1.88x ]. So the company, not just with its businesses, but with a very responsible approach in terms of its capital structure, very significant advance of almost BRL 3.5 million in the capitals market, 95% of our debts in the Brazilian capitals market, which reflects the risk perception of our operations, and this work. And this structure that is very well done by our team, providing us the possibility of continuing significant and relevant investments of all our units, both in recurring income and real estate development business lines, and we are going to continue delivering all the projects that Breno mentioned. Before opening for the Q&A, I would like to thank all the JHSF team. This amazing team, amazing work, work with such dedication that is really unique, a team that is on 24/7 so that our customers are always receiving good service being well taken care of. This represents JHSF showing the great operations that we have. My special thanks to all our customers for the trust without their trust and support, nothing of this wouldn't exist. You are the reason for JHSF have to exist. And I would like to thank all other partners that support us that work together with us so that we can build this ecosystem, that's a leader in Latin America, increasingly more global and relevant with unique operations that we deliver in our lifestyle center. Mara, please.

Thank you very much, Augusto and Breno for the presentation. Let's now move to the Q&A session. [Operator Instructions] Our first question comes from Gustavo Fabris from BTG.

Two things about Real Estate Development. The first one is quicker. So I would like to understand more about the Surf Club to understand how you think and what you're expecting to launch and how you're going to do the launch. So we had talked Phase A and everything to understand the timing. This is the first one. And the second one is about the Reserva, if I'm not mistaken, last quarter. So there's to be in the project. So is there any timing for the launch? And do you have any strategy in mind to keep one part of it for rentals and sell the rest? So how are you going to deal with it?

Gustavo, thank you very much for the question. I'm first going to talk about Reserva. We have separated the 4 towers, we have set aside half for the company to retain 4 lease for JHSF Residences business line. So we're going to have the curatorship, furniture, decoration and everything. So we have a waiting list with our rental units. So we have separated half for lease, and we are selling the rest. And it's -- if you drive by, you can see -- if not this month, but I think that before the end of month, you can see the visible part of the construction. It's moving on well. It's very iconic with very high demand. São Paulo Surf Club Residences, which is a real estate project connected to the club, facing the club. We -- first, we want to open the club completely full. And once it's on, it's live, and then we'll prepare the launch of this real estate project in phases. We are going to have about BRL 2.5 billion depending on when and how we launch the product. So it's going to be very attractive once the club is operational. With Reserva, we don't know exactly the number of units that we are going to retain for rental, but we are going to separate a portion of it for lease. These were your questions, right, Gustavo. Our next question comes from Matheus from Santander.

I have 2 questions. The first one is, I think that you said in the release that there were some cost reimbursements in the quarter in terms of Real Estate Development. Could you give us a little bit more color about the reimbursements? Is it a one-off impact in the quarter? Should we expect anything looking into the future? And question number two is the legal settlement. Could you give us some more color on that? Is it in line and the CapEx, all of this?

So I'm going to start with the first question. So it was a one-off reimbursement that is not material for our bottom line. So in your numbers and valuations, you don't need to worry about that. It's a reimbursement of expenses that we do. And -- so this is a one-off event.

Thank you, Matheus. Thank you very much for your question. As to the civil public lawsuit, so this lawsuit that we had, it was pending and depending on the total conclusion of this lawsuit, and the public prosecutors did something very important, terminating this. The public interest civil action in a way that is very positive for the action, JHSF contributing even further to the social development of the region with many actions that we announced in now a material fact. So it finalizes and ends the process. So we really wanted to end it -- this, and we had -- we committed to the market that we would keep up to date in terms of the public interest civil action. We ended it. It settled in a way that is very positive for the region. It's a contribution -- even greater contribution that JHSF provides to the social aspects of the surrounding areas.

Now next question comes from Herman Lee from Bradesco BBI.

We have 2 questions. [ Number one, ] you have very strong operational KPIs in sales, lease, everything. So recently, we have been seeing retail as a whole in Brazil warming up sales. How do you see the dynamics? Is this what you see or maybe JHSF's portfolio would be slightly more defensive? Second, number two is the -- how is JHSF seeing in the system ecosystem? Can it become a vertical?

Herman, thank you for the question. It's nice to speak to you again. Well, first of all, in the presentation, I mentioned our growth and the overall growth of our industry, considering high-income shopping malls. I think that overall, more and more these consumers will be looking at what these spaces, the project they go to provides an experience while they are there in terms of having a special time, if they're going to buy something. So the special performance of our malls is a unique model that the JHSF has in Brazil and Latin America, as I said, is in advance and turning shopping centers into lifestyle centers. So it's an integration between all the activities that we have in our malls. And quarter after quarter, this has been demonstrating to be a very strong sales generator, providing very good results for these operations. This work of being able to gather exclusive brands in our projects and different activities more than just a shopping center, and this has been providing to these customers. They are not going there just to buy something, and this is an evidence. Average time that customers spend in our malls or in our shopping centers is much longer as compared to other projects. And this is because of the format we operate in. So our malls, all of them are open air. So shopping Cidade Jardim looks different during the day, if you go there early in the morning, it has one color and one light. If you go in the afternoon and at night, it looks different. It's a different environment or lighting. And this is very much related to nature, to a garden to an open space, different from other malls and other operations in a closed environment that is kind of sealed. So this natural environment of our shopping centers is something very unique and special about our brands. So all our malls are open. Catarina fashion outlet is completely open. Town Center is going to be open. Faria Lima is also going to be surrounded by many rooftops, turning into a garden too. So -- and the curatorship of these -- the unique brands that we have in these areas right from the beginning of our operations are being strategic about connecting all the brands with us is being reflected in a special way. And I think this is a little bit of the formula that we have been practicing. And more and more, we will develop new activities. So our center is another connection for customers. So people want to look after health, well-being and something exclusive that they can do in the health centers. So we want more and more to take different dimensions of the lives of our customers into those centers so that when you look at the ecosystem as a whole, that's why we have this very special and outstanding performance. As to BYS International, this is an international company, leader in both lease in Brazil. We are completing this acquisition maintenance of the founding partner that has the know-how as we did before. We started it in a phased way, knowing about the operation. So we have the same. So we want to deal with this segment of boats, bringing to this ecosystem another operation that is connected to this very special lifestyle. And also having JHSF as a very special partner. As I said, first of all, we are going to start this process. And when we joined with Fasano, it was just a hotel and today, it's so much bigger. But we are always very well organized and responsible. But looking very much at an industry that has a huge growth, the industry of boats and the lifestyle of high-income customers, we want to provide them more and more options for them with the boats, the airplanes, the restaurants and everything. So we want to have this unique ecosystem.

This is very clear, Augusto, and congratulations.

Okay. Great. We have received a few questions in writing about the investment firm. So let me just drink some water.

So we have announced clearly a material fact about the market, about this transaction, which is a significant transaction and the company is still in its silent period that is longer than originally reported in our material fact. It's transformational, not just for the Brazilian market. We are working with lots of dedication so that the operation evolves in the best way possible, the company continues advancing with that regard. This is a transaction of almost BRL 5 billion for the development of the company. They will be allocated to this firm. So in terms of our projects and real estate. So this is ready. And we are taking to this investment instrument, this operation. And in doing that in a clear way, so we have the income businesses in the company. Also, there is a significant land bank of almost BRL 40 million for launches in the mid and long term, considering the curve of the project. So once this transaction comes through, we -- so the inventory is going to stay segregated in this investment company and the company with its income generation businesses expecting to have a stabilized generation in the midterm. We have more inventory in real estate for future launches that we may or not execute through this investment company or any other new investment companies that the company may open. This is a significant and important transformational transition and transaction in our financial Investor Relations team. So the whole company is very much dedicated with care, diligence and responsibility looking after this transaction. So that soon it's ready, we are going to announce to you. It's a binding agreement.

So there are many questions about dividends. Well, the management has not yet made a final and official decision for next year. So soon as we get to a decision, we are going to announce to the market and shareholders the payout of dividends for next year. Augusto and Breno, I think that because of time, we have some other questions here that I have received. But if we didn't answer to you here live, we are going to answer it still today. Thank you very much for your attendance. Please come back.

Thank you so much for your time for being with us on this presentation. And the company is going to work, continue to work and operating strongly with responsibility so that we end 2025 in an exceptional way. Thank you so much.