Minerva S.A. (BEEF3) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. Welcome to Minerva -- the video conference on the material fact released by Minerva Foods yesterday. Here with us today are Mr. Fernando Galletti de Queiroz, CEO; and Mr. Edison Ticle, CFO and IRO. We'd like to inform you that this presentation is being simultaneously translated. Interpretation is available by clicking on the interpretation button. [Operator Instructions] We'd like to clarify that any forward-looking statements that may be made during this video conference regarding the Minerva's business prospects, operational and financial targets are projections of the company's management, which may or may not occur. Investors should understand the political, macroeconomic and other operational factors may affect the company's future and lead to results that differ materially from those expressed in such forward-looking statements. Now I'd like to turn it over to Mr. Fernando de Queiroz and Edison Ticle. We will start the presentation. Please go ahead, gentlemen.

Good morning. Thank you, everyone, for joining us this morning. I will give a very brief presentation, and then we'll move on to the Q&A session. On Slide #2, We share what was bought and what was announced yesterday. So 16 slaughtering plants, beef and lamb plus 1 distribution center in Chile. These assets are located in Brazil, Uruguay, Argentina and Chile. These were slaughtering and deboning plants that were owned by Marfrig. Almost all operations, except for processing operations from Marfrig and some other plants that were used in order to support their processing operations. These assets supplement our international footprint. They will enhance our geographic diversity also strengthen our beef operations in South America, particularly exports. We believe that, that may grow by 30%. And also, it also supplements our lamb operations, diversifying operations in Chile. 3/4 of lamb operations will be in Australia, 1/4 in Chile. As for operational metrics, our slaughtering capacity is almost 13 heads of beef per day and 6,500 heads of lamb per day. And our estimate, and once again, we are acquiring assets. We did not have access to any balance sheet. So this is our estimate based on geographic location based on our own operations. And our net revenue estimate is approximately BRL 18 billion and estimate EBITDA of BRL 1.5 billion, considering the plants and the current management of such assets. This is a point I'd like to stress. And just to share how we worked on the numbers. So if we worked on our numbers for last quarter divided by the number of heads we would have for beef BRL 7,100 and for lamb BRL 1,100 and our capacity by 80% and adjusted to beef, especially the 3 plants that are not in operation right now. So as the assets stand today, the estimated revenue using our metrics per beef and per lamb, which will be around BRL 17 million. This is a very easy math. There is no magic bullet. So go over the numbers that we presented in our second quarter and the heads slaughtered of beef and lamb. What about the deal structure? We estimate or I should say that the firm value is BRL 7.5 billion. And yesterday, we made a down payment of BRL 1.5 billion from our cash. And we also have a firm commitment credit line from JPMorgan. And 18 months in order to consider how this bridge loan will take place. Now moving to the next slide and talking about the assets. As I mentioned, we are buying assets in Brazil, Argentina, Chile and Uruguay. So in Brazil, you can see the plants in the map, plus a distribution center located in the city of Itupeva. The installed capacities of approximately 10,000 heads and a very good geographic distribution and that will supplement our current geographic location. In Uruguay we are buying 3 plants, capacity of slightly over 2,000 heads per day, also supplementing our current Uruguayan footprint. Moving to Argentina. We are buying a plant with daily slaughter capacity of 750 heads. Also, in a region that is not where we are present today. And finally, in Chile, a lamb plant in Patagonia, 6,500 heads that is the slaughter capacity, and that will also enhance our position. So It will really supplement our current portfolio, adding value in our ship operations. Now I'd like to turn it over to Fernando so that he can go over the rationale of such transaction.

Good morning, everyone. You all know Minerva's strategy and the geographic diversification is a growth pillar of our strategy. And this operation increases our geographic presence in Brazil, Uruguay, Argentina and adds a new country, Chile, adding value to our lamb operation that we currently operate in Australia, particularly focusing on the international market. And this is very important. First, to establish the #1 platform regarding beef efficiency in Latin America. So today, that is focused in Dubai. So I would call it a plug and play to our operation. Just as Edison mentioned before, this acquisition is not bringing SG&A. So when we talk about the headcount, we are talking about those who work at the plant, so it will generate cash. Besides that, the second important point, our operating and commercial synergies. Economies of scale, obviously, also commercial synergies, as I mentioned, especially regarding exports, and we estimate that, that will add 100, 200 bps to our margin and improved efficiency also not regarding price, but mainly diversification also on how we can speed up or not our operations and also the reach -- our reach will increase. We will strengthen our presence in different markets. So it will -- if we go over to what happened after the pandemic, many markets observed the consolidation, food services, particularly outside Brazil. And we are strengthening our companies so that we also are stronger in our future negotiations. This opportunity to grow is really an opportunity that we had to take advantage of. We have been examining the opportunities for more than 10 years. And you know that I believe that now we have reached the level of maturity, both companies. Also with regards to confidence between the companies and that allowed us to take this step forward. And we believe this is a win-win transaction that also strengthens our leadership regarding beef in Latin America. We also increased our efficiency in risk management and also increases our presence in premium markets fitting our strategy. In next slide, we can see the Minerva's future footprint. So we are adding 16 plants, so 40 plants in different regions. And that will also increase our reach. We are very close to producers that also enhances our efficiency. That gives us this capacity of also experiencing the regions closely. And you can see here the number of plants of a lamb. And you can see the percentage and where we stand regarding our geographic diversification. So when we go over our capacity, we achieved 52% of our production capacity in Brazil, 15% in Paraguay, 15% in Argentina, 2 very important countries. We have also enhanced the capacity of Uruguay to 11%. And as you can see, this where beef is a unique footprint. It's unique worldwide and the way it is structured. And I'd like to once again highlight the fact that this cannot be repeated. We are not going to see a company with such capacity and geographic presence. And for lamb, 75% in Australia, 25% in Chile. And that also allows us to reach premium markets. If we put everything together, this environment and this win-win structure for both companies, this allowed us to take this step, move forward. We are confident and we know we can generate value. Obviously, we will face some integration challenges, culture challenges. But this is the 20th M&A operation that [indiscernible] carry out together, and that strengthens our integration also on how we efficiently carry out risk management and how we lead that to operations. Now let me turn it over to Edison once again.

Thank you very much, Fernando. So on Slide #7, let's talk about the financial highlights. So LTM for the last quarter, you can see here our net margin EBITDA, and a leverage of 2.7x with assets that we are adding from Marfrig and once again based on our best estimates based on second quarter numbers. Net revenue of BRL 18 billion, EBITDA of BRL 1.5 billion, and I should say that assets will also add to our cash. So we estimate that the CapEx will be approximately BRL 300 million, EBITDA of EUR 1.5 billion and the debt in order to acquire the plant BRL 7.5 billion. So that will cost us BRL 800 million per year. So these assets will generate BRL 400 million as cash. So we believe that this is a very comfortable scenario considering also leverage. The assets position is unique, just as mentioned by Fernando and that also help us to carry out a quick deleverage. If we bring together the operations, we estimate revenue of BRL 46 billion, EBITDA of BRL 4.3 billion and margin of 9.1%. So if we take into account synergy. If we go over our background of 19 M&As, we will improve our base by 200 points, which we had before acquisition and usually in 18 months. If we look 1 year ahead and if we consider synergy of approximately 70 basis points. So having our margin moving from 9.1% to 9.8%. We're talking about EBITDA of BRL 5.1 billion. Revenue that increases by 10% and that will generate a free cash flow of BRL 5.2 billion. So we can get BRL 1 billion plus BRL 400 million from assets, and we believe we can generate another BRL 700 million, BRL 800 million of free cash coming from synergies. So our leverage in 12 months will reach the same level that we see today. Is that a challenge? Obviously, it is. But our track record of 19 M&As that have been carried out all the integration process and also all the value that was added in every single acquisition. So we increased our revenue 50x over the years that we have been managing the company. Another highlight that we find important. The cost of indebtedness is very conservative. It is also related to our bridge. So obviously, we know that some other opportunities will be presented and will make the decisions in the next 12 months. And just as Fernando mentioned, we are buying assets. So we are not bringing the management structure. It's just a variable cost. And because we are increasing our capacity by 44% regarding slaughtering and processing, that means that we are diluting our fixed cost by 44%. And that will reflect on our improved margins in our operations in the next months. And finally, moving to Slide #8. Here some sensitivity analysis. And I'd say they are very conservative, down to earth, margin EBITDA 1 year ahead. So 2024 between 9% and 11%. And then we need to extract from 0 to 200 basis points of synergy. And we also present the corresponding EBITDA generation of the free cash of -- and also our net debt and our leverage metrics. So being very realistic, just as we close the deal and 1 year ahead, so if we consider closing the deal December and if we examine the end of 2024, we'd say that our leverage may be between 2.2x and 2.9x, depending on how synergies will be taken advantage of in this new Minerva. And once we close the deal and analyze the pro forma numbers, our leverage going over numbers of the second quarter of 2023. We believe that, that go to 2.3x, not to take into account the time line for that closing and also additional leverage until we close this deal effectively. Once again, this transaction includes assets that generate cash. I'd like to stress this point. It's very important despite being 100% leverage, then also being very conservative regarding that, these assets will generate cash to our operation. And finally, is a final message, just going over the benefits that will brought about from this transaction to be the #1 in beef efficiency and also the largest in Latin America. We will also increase our geographic diversification. We will increase our slaughtering capacity by 44%. So more than 42,000 heads of beef and 25,000 heads of lamb. Also an opportunity to benefit from operating and commercial synergies, we will have access to more than 100 countries with regards to exports. We will also be the largest number of plants certified for export to China, approximately 7,000 heads per day to China, a very diversified industrialized portfolio and premium brands. So we will increase the volume of our brands, and that will increase rentability and commercial opportunities. And finally, it strengthened also our platform for value generation. It reinforced our leadership, so we are occupying privileged position regarding synergies and also our international reach. Now I'd like to turn it over to the operator so that we can open for the Q&A session. Thank you very much.

[Operator Instructions] Our first question comes from Ricardo Alves with Morgan Stanley. Please go ahead, sir.

Good morning, everyone. Thank you for this call. Once you examine the assets, what draw your attention. Then last night, you talked about Tangara Da Serra and some other assets that might be interesting. So can you please add more color about the initial conversations you had with Marfrig. And as I mentioned that the idea is not to open new -- the 3 new plants, but perhaps that could be a strategy. And obviously, that also leads me to ask about plants that have access to China. Do you see the possibility to access the Chinese market and some other regions. I'd like to also ask you to talk about Uruguay. Obviously, it's a consolidation strategy in Uruguay. So what can you share about Uruguay and some other regions? And another very quick question about -- but then show questions from the competition agency antitrust related questions, regarding concentration of presence in some specific markets. And let's say that you may see a delay. Are there specific mechanisms in order to effectively close the deal?

Ricardo, let me start with the antitrust agency. We will follow, obviously, the regulation of each country, but we do not believe that we will take more than 12 months so that we can close the deal in all countries. And I can also tell you that we are working already so that we -- and our -- the maximum time line that we foresee considering the different jurisdictions is 12 months. With regard to what you mentioned about what led us to focus on that is how these plants supplement our operations. And Minerva also improved our geographic arbitrage market access geographic position. Today, we have a centralized structure in Dubai to sell to international markets. And our reach is very big, 17 offices. We are also reaching new areas. So in this post-COVID market in which we observed consolidations to have a stronger company, the most efficient platform regarding beef. That certainly makes sense to us. And for those of you who follow the market, we had already examined this opportunity over the last 15 years for many times. So now we are more mature, both companies, and to us, this is a win-win transaction. And our team also has never been so prepared, especially when we talk about risk management, culture, technology, business intelligence. So we are ready to make this move. And you also asked about Uruguay. Uruguay is certainly a very important country, especially considering that it holds the best sanitary condition, and that is very important to us, considering also how important diversification is to us. And with regard to sensitivity analysis and the numbers of the second quarter, we did not include the BPU. And once again, the closing shall take place tomorrow by the end of August. And then in September, we will also start to operate BPU. We have already obtained the ratifications, now it's just a matter of handling the business to us. And that should take place by the end of this week. So numbers are very conservative because it does not include a very important margin and revenue coming from BPU.

Our next question comes from Mr. Thiago Bortoluci with Goldman Sachs. Please go ahead.

I have 2 questions. When we try to compare the implicit margin in the EBITDA numbers that you presented for Marfrig, my number is approximately 8.5% EBITDA margin. And that also compares to 7% to Minerva. So we are talking about more of 200 base points to be captured. So is there any structural reason that indicates that assets that you are buying should have a margin that is below Minerva's current margin. So in order to consider efficiencies? And also my second question is about leverage. I know that you are not going to provide us any guidance, but considering the potential gain in efficiency, not to mention also the organic growth of cash. So do you believe that Minerva will reach 2x leverage by the end of next year?

Well, to answer your first question, the answer is no. We do not believe that these plants will not be in operations and presenting the margins that we achieved today in 18 months. It's a matter of quickly integrating them. And then have them in our Minerva's management. So all the risk management tools, our channels, many other instruments that we have available. And we know we are more efficient that -- than the average. So we know that there are some quick wins and low-bearing fruit that can also support our -- and enhance our synergies. As for your second question, -- can you please repeat your question? Leverage Okay, yes. Well, the sensitivity analysis, we try to be very conservative. So we work with a more optimistic and a less optimistic scenario. What I can tell is that when we close this operation. If everything happens as they happened in the previous 19 acquisitions, it's very likely that in 12 months, we will go back to our current leverage of 2.5x, 2.7x.

If I can ask one more quick question. Perhaps it's more to Marfrig not to, but just in order to try to understand, in Marfrig's presentation and the EBITDA of the asset that you are acquiring, they report or mentioned something closer to BRL 750 million. So how do you explain this difference presented by you and Marfrig?

Okay. So our estimate, Thiago is what we generate every unit per head. So each company, they have their means to allocate costs. They also have their own specific policies, particularly regarding internal transferences and processing. So we do not know exactly because they depend on internal policies. So there are many other issues, depending on, for example, how you use a marketing budget, for example. You may, for example, present revenues more to one side or the other. It doesn't matter how you do the math. But obviously, the major question is what you just mentioned.

Our next question, Gustavo Troyano with Itau BBA. Please go ahead.

Actually, I have 2 questions related to the same issue. The investment required to achieve the margins that would reach the current Minerva's level in 18 months and also working capital and CapEx. So how much working capital will need to be burned in order to achieve the top line you mentioned with the ramp-up of the plant. And also with regards to CapEx, the BRL 18 billion you mentioned, do they take into account the reactivation of the plant and will it take further investment -- nonrecurring investment in order to reach that level.

Well, the answer is no. We are not considering, as I mentioned during the call. We are not considering these 3 plants going back to operations. So it's a mess. So you open a spreadsheet and then you go over revenue per head of beef and lamb and then you will reach that number approximately BRL 18 billion. So as for CapEx, just for maintenance, so the plants are running at a level that are similar to ours. And they should keep doing that until they have the [indiscernible] and as for working capital, in order to be more efficient, we estimate that it may take investment of BRL 500 million, BRL 700 million in 12, 18 months. So it's not something that will take place at once. As the operations are handed over, we will do the ramp-up, we'll improve and that may require up to BRL 700 million of working capital. This is the investment that will be required in order to benefit from the synergies and to achieve the margins we mentioned.

Gustavo, I'd like just to add that the seller has many efficiencies and considering the previous integration processes we've learned, but for this specific case, we have a very good idea of what we will find. So we swapped plants in the past. So Várzea Grande, which was ours for Paranatinga, which belongs to them. So we already went through an experience of knowing what is different in our management system. And that also allows us to expedite this integration to keep the best practices and to increase efficiency.

Next question, Pedro Fonseca with XP. Please go ahead.

Congratulations for this deal. Just a follow-up on what Edison mentioned about synergies and you do have a great track record. But considering the previous 19 M&A, what would bearing fruits or where do you think that you can find the synergies in a more easier way and also considering maturation? So this is my first question. And my second question, Edison already mentioned that there are some proposals about the takeout of the bridge given by the bank, but considering the time line. So what can we expect regarding the takeout of that bridge?

It's difficult for us to determine deadlines, but to us, it's a priority to consider the best structure probably, it will be a basket of operations in order to take off the bridge. We are not in a hurry, but we will certainly also take opportunity of the windows available in the National and International markets. The time line for these operations will meet what is necessary in order to generate also free cash and also to benefit from synergies. So we'll keep the capital structure favorable to us and with less debt. Considering synergies, Pedro. One of the most important is the commercial synergies. I mentioned in my -- our presentation, 17 commercial structures in order to serve the different markets. So if our trader is selling 10 or 20 containers, they also increase their strength. And I see a lot of synergy in the previous plugs, we know how important that is and how strong that is. As for risk management, that is another commercial issue, and that allows us also to expedite or not the plants according to seasonality according to also producers generating more value to producers than to us. As for production, Certainly, there will be many learnings. We'll have to learn. But there is also the strong interest in aligning our teams. Just to give an example, we had a competition for different areas of [ plant ] and plants. And we assess the best practices that will be transferred to all units. And that was really transformational with Minerva. This is just another example of management on how we can effectively accelerate the process. Just giving once again the example of Paranatinga and Várzea, in which many of these models were implemented. So we are very optimistic. We believe there is room not only to implement our system but also to learn and improve Minerva as a whole.

So just a follow-up question. Edison talked about the main assumptions about estimated EBITDA. So 1,700 for beef and 1,200 for lamb. And you also mentioned capacity, 80%, if I'm not mistaken.

Yes. 78% to 80%, depending on the plant. But the average is very close to 80%.

Next question. Antonio Luiz Gomes with Ninety One.

Can you hear me?

Yes.

Regarding the financing of the bridge loan. You mentioned that you're looking for windows in national, international markets. So what about interest rates? So what kind of split do you have in mind? What plans do you have regarding this finance. You told us that you don't know about the time line, but can you share more about the issue because the market is volatile?

The strategy is to follow and once we find an open window and conditions that make sense to us, we'll take opportunity and carry out the takeout. The idea is not to be tied to a single instrument, but also consider other options, not only capital market but also bilateral, also working with banks. So there is a broad menu. And according to the market windows. And as for the cost, we will examine and with our best regarding cost, so that cost can be the lowest possible and also considering the time line.

Okay. My second question is about rating agencies. You have talked to Fitch and SAP, what is their take on these transactions?

We'll talk to them today. They show conversation. Now the transaction is welcome. It increases diversification. Our company will also increase, criticism may be Minerva's size. So if we diversify more and if we increase our size, that is welcomed, especially when we talk about the leverage, it will not be close to the covenants that we have. It's still very comfortable vis-a-vis covenants and also we expect a quick deleverage and considering our track record, once again 19 acquisitions over the last 14 years.

My last question is about -- it may sound like a basic question but how are you going to work with Marfrig regarding beef?

Well, we negotiated an agreement regarding supplying that to some of those plans.

[Operator Instructions] I'd like to turn it over to Edison so that he can go over written questions. First, 2 questions are in English. First, from gasoline Janssen. Her question is, when to expect to effectively close a deal well. The antitrust issues should be over in 12 months. What about EBITDA generated?

Well, I have already answered that. Our estimate is very good, especially considering our EBITDA and the characteristics of the assets that are being bought. We estimate that without synergy, they will generate BRL 1.5 billion of EBITDA. And how are we going to finance the transaction? Well, with that, we have a committed credit of BRL 6 billion from JPMorgan in 18 months, and then we will consider how to take out that bridge. Second question from Nikolai. What is the expectation regarding leverage by year-end? Well, if the transaction is not concluded by year-end, then our leverage will stay on the current level, 2.5x, which is the leverage that the company has been presenting over the last 18 months. How do we plan to manage logistics? Logistics is a very important synergy point. So we will also increase our bargain capacity. And I'd like to remind you that one of the industries when we -- which we also saw more consolidation was with regards to shipyards. So that also makes us stronger. The other question was about agreement in providing products to these new plants? No. Most of the cattle is bought on the spot market and this is how we are going to keep on our operations, and we will also have some long-term agreements that will allow us to provide some special products, but we will keep the same dynamics, just the way we operate today. Question from Jean Mendosa, the BRL 1.5 billion of EBITDA. Well this is the EBITDA that was calculated based on our experiences considering the assets that we are acquiring. This is our best estimate of what they will generate without considering allocations or sub-allocation of costs between different divisions. Next question from Rafael from Uruguay. Minerva will now have 7 plants plus the 3M BPU 3 more. Well, we have 6 plants in the content. Do we plan to close any of them. No, we do not plan to close any plant. Rafael, BPU was not included because we have not taken over yet. So just the 3M that is 3 that we have acquired plus BPU. So your math is right, 7, but we are considering just the 3 that we already own, plus these 3 that will be acquired according to our outlook. Next question from [ Bairs ] and we issue a bond in U.S. dollars before closing the deal. Well, that is one of the options for the takeout. It's on the table. It's just one of the options that is currently available. We have more questions about funding. So we are examining all instruments. Can we consider capital markets? Yes, with regard to security bonds, yes, local debentures, yes, also local loans, yes, our [ internalized ] international loans, yes. We have a very broad menu and we will probably combine some of them. Next question about the dividends from Fidelity. What's our plan regarding dividends, considering increased leverage. Our policy will be maintained, leverage equal to or below 2x by the end of calendar year, our policy is to pay at least 50% of our net revenue as dividends. We will keep that policy. But once we conclude the deal, we will leverage the company above those levels. But if we are correct regarding synergies, we will go back to the target of 2.5x and then we will once again resume our dividend policy. We may have an interruption regarding the minimum policy for a year when our leverage level will be higher. Question about synergies. In ESG and the value chain of the plant. Obviously, yes, we will also implement the benefit, the best practices coming from these plants that are being owned. What about also if we see any changes in the share in the local market or not. Well, the idea is to keep on doing what we do. We run a weekly matrix that will give us the optimal breakdown between local market, export market, considering different cuts in every single market and also how much we can allocate of those cuts in each market. So our innovation area is also improving and expediting the process becoming more efficient. So if we took 10 minutes to run the model and have 30 outcomes today that runs in 1 minute with more than 100 potential outcomes. So more options, more efficient, faster and that certainly is one of our differentials regarding management, and that's also important in the decision-making process. And that also help us in attracting synergies and improving margins. So the mix will be determined week after week. So Today, that would be 65/35 or 70/30 export local market. We have record considering the strategy over the last couple of years of dividends and keeping the same policy. Would you consider anything to increase to deleverage faster? No, we consider acquisition with that because we are very confident considering our track record that we can also deleverage our company and generate free cash. I believe that is the last question is about our plans regarding dividends once again considering our increased leverage. Once again, we will keep the policy and we expect that in 12 months, we can go back to the leverage equal to or below 2.5x and pay minimum 50% of net profit as dividends. One more question from BPA Asset Management. What's the percent of the total production capacity? So it's about our supply agreement. So how much we will supply to Marfrig? It's really negligible considering what we are producing. I can tell you that it's approximately 2% of what we expect to produce in 1 year. Okay. I believe these are all the questions. Let me turn it over to Fernando first for his closing remarks. Oh, we have one more question.

Our next question is from Lucas Ferreira with JPMorgan.

Considering the future and you have already reached a very good scale in South America. You still see opportunities to keep on growing in this region or it would make more sense to focus on Australia in the midterm and expect leverage to go down to the current level quickly. And are you considering other acquisitions in the next 12 months? Or will that depend on future opportunities? And last question. Considering the yield at the plants, do you see any opportunity?

Well, as we mentioned, in top of Paranatinga with Várzea Grande, we learned that we have the possibility of capturing value and of what we can add. So we always examine opportunities. And I think that the secret is really to consider new techniques. As for new acquisitions, the answer is no. Now we are facing this integration challenge and Minerva is very focused. We have a high discipline. So we will focus on this integration and also in working with these assets once they are handed over to us. So conservatively, just as we did in every single acquisition that's happened before. Well, please let me add the plans for growing in Australia have been rolled out in the short and midterm. The focus is to digest and integrate these acquisitions. And I believe that this is a work for 2 years. So for 2 years, we are out of M&A. Now we need to extract value from what was acquired, reduce leverage, pay debt and also to resume the payment of dividends aggressively just as we did in the last couple of years.

Our next question comes from Rodrigo Almeida with Santander. Please go ahead sir. Please, Rodrigo. Mr. Alves, you can go ahead. It seems that Mr. Alves is having some issues with his microphone. With that, we end this Q&A session. Let me turn it over to Mr. -- to the CEO for his final remarks.

Well, thank you very much for joining us. Minerva has always been very transparent and very clear regarding every single transaction. So with this new acquisition that we have announced today, our intention is to consolidate our policies regarding risk management and apply our know-how from the previous 19 acquisitions. But I'd like to highlight our team. Our team is very mature, is ready and prepared for this transaction. So this is taking place in the optimal moment. And I would like to commend our team for everything they have done and on how we have generated value in every single front in everything we have learned over the years. So I'd like to thank you all. We are available to answer any questions you may have or to any ideas, please you can get in touch with us for anything you might need. Thank you.

Well, the video conference of the Minerva's material fact is now concluded. If you have any questions, send us an email to [email protected]. We thank you all for joining us, and have a great day. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]