NHOA S.A. (NHOA) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to our investor call regarding our Q3 2022 trading and operational update in the context of Master Plan 10x. The investor call will be opened by Mr. Carlalberto Guglielminotti, CEO of NHOA Group, and with him to explain all digits about the Q3 2022 trading and operational update will be Mr. Giuseppe Artizzu, CEO of NHOA Energy; and NHOA Group, General Manager; Mr. Roberto Di Stefano, CEO of Free2Move eSolutions; Mr. Stefano Terranova, CEO of Atlante; Mr. Gabriele Tuccillo, Chief of Strategy, Staff and Investor Relations; and Mr. Alessio Caruso, Deputy CFO of NHOA Group. Mr. Guglielminotti will open the call and then we'll leave the floor to Mr. Artizzu for the global business line, Energy Storage; Mr. Stefano for the global business line, e-Mobility and Mr. Terranova for Atlante, the global business line dedicated to EV Fastcharging Infrastructure. At the end of the call, the management team will be available to answer all questions you may have. Please note that this investor call will be recorded. If you could not attend the whole call, the webcast and the presentation will be available on our corporate website on the dedicated page. Please note that all participants will be in listen mode. [Operator Instructions] Before we begin, I just want to point out that any forward-looking statements made during today's call are subject to the risks and uncertainties mentioned in the safe harbor statement, which is included on Page 2 of today's presentation. This also includes the risk that the transactions discussed during today's call remains subject to standard conditions for these type of transactions as well as any other risks and uncertainties associated with the execution of transactions of this type. And as customary, the call will be governed by that language. So with that, I will leave the floor to Mr. Carlalberto Guglielminotti.

Thank you, Tiara. And if I can make congratulations also for your new role of Head of Institutional Relations and Financial Communication at NHOA, but even more importantly, please let me first congratulate with our CFO, Ilaria Scarinci that cannot be with us today as she become mum literally tonight. So congratulations from all of us, Ilaria. Well, good morning, first, ladies and gentlemen, and thank you for being with us today. We are today here to present to you as customary in the context of our Master Plan 10x, our Q3 2022 trading and operational update and the results, obviously, as of September 30. I would now give you the usual general overview of the main results that my colleague will dive later on and more in detail, obviously. I'm going to say our third quarter was another record quarter for NHOA. It was actually driven again and again, if I may, by Energy Storage. As you say, NHOA Energy coupled with a booming rollout in the Atlante, the EV Fastcharging network. So revenues at September 30 reached EUR 100 million at group level for the first time. And this is a record for NHOA. I mean, from the one hand, this is mainly thanks to an impressive 20x growth year-on-year in Energy Storage, but this is also the confirmation of our vision. I mean you will all remember that EUR 100 million revenues was the target we set back in 2017 for our 2020 results, so 5 years ago. And 2020 -- the 2020 revenues and 2020 target eventually turned into something that was unachievable even if the backlog was almost there because of the travel restrictions related to COVID-19 pandemic, if you will all remember. And then eventually, we achieved exactly the same results, so EUR 100 million of revenues, essentially 1.5 years later. And I will never be grateful enough to present our piece with the whole NHOA Energy teams for having achieved this amazing role today after 15 years of technology investments, commitment and if I may also, sacrifice. Because this target has been essentially achieved, thanks to NHOA Energy, our Energy Storage division, the tech heritage of our group, and this is before the potential we have for and we still believe in for Free2Move eSolutions, and this is before the successful rollout of Atlante. Anyway, this is a growth that sees over 200 megawatts online, 100 megawatt hours under construction with now full visibility towards approximately 1 giga online in the coming months. The foreselling our positioning in a solid positioning in the top 5 energy storage system integrators worldwide. And again, thanks to [indiscernible] there and most importantly to our CTO, Daniele Rosati, together with [indiscernible], I mean, along with your amazing teams, you turn this target set back in 2017 into reality. Having said that, on its turn, Atlante keeps accelerating further with now 1,300 fast points of charge online and under construction in Southern Europe, mainly in France and Italy, coupled with almost 2,000 sites in pipeline. And you will easily understand that this is well beyond the pace envisaged 1 year ago in the Master Plan. This isn't the most conservative 2 to 3x faster than planned and expected those. And this is, again, thanks to a world-class management team, led by Stefano Terranova that together with John Arabia Jacqueline, their respective teams are accelerating the Atlante network rollout at the pace that nobody would have ever imagined. Well, finally, generally speaking, this has not happened out of the blue. I mean, the execution of our project portfolio in this third quarter has run according to schedule in all 4 continents, irrespective of the macro headwinds, irrespective of the increasingly complex geopolitical scenario and not to mention the supply chain, global constraints that still are there. And all these give us an increased visibility towards our 2022 revenues, I mean with our H1 results, we already revised upward our guidance from EUR 140 million to EUR 160 million. And what they can now say to you is that we now have full visibility towards the high end of that EUR 140 million, EUR 160 million guidance range and despite the slower-than-expected ramp-up in eMobility. Ramp up in eMobility that, yes, I mean that's a bit disappointing. I can disappoint many of you. But the reality is that fundamentals did not change. Conversion rate is slightly lower, but fundamentals are there. I mean our commitment and the Stellantis commitment did not change. And even if the real volumes are not yet there, we still are committed and confident towards a step change in revenue generation. Starting from Q1 next year with the first concrete signal in this year, but Roberto and Stefano will elaborate on that in a few minutes. Anyway, conclusion is that group top line results are driven by our stationary storage business line, where the continuous increase in backlog and order intake for NHOA Energy, coupled with a stable pipeline of around EUR 1 billion give us full visibility on the NHOA's growth and the growth that NHOA will have in 2023 despite, as I said, the global scenario. And even more importantly, this confirms our Energy Storage business line, NHOA Energy as the growth energy of the group. But anyway, I would like to thank all again and again all our extraordinary people for the amazing job they have done and they are doing and they will do whatever -- whether they work in NHOA Energy or Atlante or Free2Move eSolutions. And I mean, as usual, I don't want to spoil too much of our results and the floor -- I'm very glad to leave the floor to Giuseppe Artizzu, our Group General Manager and CEO of NHOA Energy to give us his insights around the results of NHOA Energy and our global storage business line. Giuseppe, the floor is yours. Thank you.

Thank you, Carlalberto, good morning, everybody. So in the third quarter, we have reported revenues of EUR 15 million, which in our new words, it sounds like a low number in reality as much as we did throughout 2021. I mean the reason by now you are familiar a little bit with our revenue accrual on a work-in-progress basis. So simply we did not have a major battery deliveries for the large projects. And therefore, this is the result, but the projects are all progressing on schedule. So this is exactly what we were expecting. We have more than replaced the backlog converted into sales. So the backlog has increased. And overall on a rolling basis also, our order intake over the last over 12 months is over -- is well over EUR 200 million and it has also increased. Our objective from a commercial perspective in the fourth quarter is to preserve this trend. So we expect a good quarter, a very strong quarter in the fourth quarter and from a revenue-generation perspective, and our objective is to offset that with a new order so that -- to maintain strong visibility as we get into 2023 with a lot of trust in continuing this exceptional growth path that we have undertaken approximately 1.5 year ago. Capacity online has moved to over 200 megawatts. This is given by the commissioning of the first phase of our HePing project in Taiwan. So it's 13 megawatt projects that has been commissioned and has been authorized to provide frequency-regulation services on the Taiwan high-voltage repeat by Taiwan Power Corporation. This has occurred over the last weeks of October. We are now entering from an execution perspective into a way of commissioning. We have 3 or 4 commissionings that are occurring over the next 2, 3 months, including the startup of the commissioning of synergy project in Australia where installation is essentially completed, and it's going to be a long commissioning process, cost commission and precommissioning, we have a substation to commission. So it's quite longer commissioning progress, but installation activities and substantially completed, we have commissioned 3 or 4 other projects, but we have a wave of commissioning between now [Technical Difficulty] next year. We no longer have under construction, the HePing project that is -- that has been moving to online capacity. Our pipeline is stable at around EUR 1 billion. We are working a lot on the quality of -- not only the quality of the pipeline. And we are being extremely selective. So we are not -- we are deliberating not increasing disproportionately the pipeline in order to target projects that are sufficiently large to justify rational allocation of resources. And on the other hand, they are not too large to challenge our financial capacity. We are striking the right balance to have an ambitious path but disciplined growth profile. So again, another great quarter, and I congratulate my team, and I'm grateful to our shareholders for the support that is providing so far, so good. We'll continue on this track.

Thank you, Giuseppe. And let's now move to comment on Free2Move eSolutions results. I hand over to Roberto Stefano for a comment on our figures and industrial challenges behind the challenges that as I anticipated, and please let me reiterate, do not change fundamentals of the project, do not change our commitment, do not change the Stellantis commitment ambition, I mean, sometimes, we -- some projects need just some patience to happen, and we are convinced and we still are convinced that this project will be successful. Roberto, feel free to elaborate, floor is yours.

Thank you, Carlalberto. And using your comments, clearly, I can confirm that I'm personally disappointed on the result, but there are reason and we are fully trusted that the execution that we are -- in these last 2 quarters implemented will give us what we were expecting since time now. So let's first comment the numbers. So we -- you can see that we did a growth of 23% versus H1 this year and plus 31% versus the similar quarter of last year. But what I want to comment is the conversion rate on Stellantis that you can see that this 16%. And remember in our comments that we spent during last trading update -- quarter 2 trading update, I was commenting that the expectation was for quarter 3 to have a rebound starting from September because clearly, July and August, we all know that at least in Europe, the automotive market is not the most important month as weight of sales and our cost and services are clearly paired with the sales of the vehicle. But remember in that I was forecasting that a rebound in September, I can confirm you that just looking at September, the conversion rate result on Stellantis perimeter is above 30%. That means we are achieving -- we are more or less achieving what we were forecasting in quarter 3 starting from September to be back in a decent number. If I want to -- if I comment on my expectation -- the expectation of the company, as Carlalberto said, thanks even to the support of the 2 shareholders. My expectation for quarter 3 folks, sorry, will be to achieve a conversion rate. Again, on Stellantis perimeter in a range between 20%, 30% with a certain stability during the quarter 4. Clearly, this is not just because of rebounds. We did in quarter 1, 2 and 3, a lot of activity jointly with clearly all Stellantis brands and Stellantis customer experience to completely redesign a new seamless customer journey, both for the main 2 channels that we are using to distribute and sell in the market, our product and services that are the dealer channel and for the sales online. These are start to give us a result how we are feeling in -- we are already seeing in September. And last but not least, the important -- one important information, we commented also in the last 2 trading update, the problems that all the automotive industry, not only the automotive industry, the overall industry is having in terms of disruption or supply chain for electronics mainly that was impacting even us. And I can confirm you that this is for us now out of the table. We are fully allocated for the following months. That means our -- my attests to the activity done by the team. Now we are in a safe situation for this for such type of program. Some additional comments that I would like to spend another achievement that we got during quarter 3 that are clearly the start of sale in U.S. because as we commented, we are in parallel, executing the activities in U.S. And I can confirm you that we have already got a relevant backlog and we start officially put the first sales in U.S. field in quarter 2 2022. And clearly, we got [ all the way ] and that means backlog both for the deelectrification where we need to electrify in U.S. and Canada more than 2,500 point of sales -- dealer point of sales. And we're already filling the pipe for the retail customer in U.S. The second important achievement that was an activity, not a simple activity in September -- during September, in 30 days, we did -- and we completed the migration for the whole Stellantis customer from the previous digital MSP, the mobility service provider to our eSolution charging MSP. That means that now from September onwards from 1st of October, all Stellantis customers in Europe are using our MSP. And from the third one that is another important factor for September onward with all Stellantis brand, we are executing by market, by brand dedicated call to action-pairing vehicles with our charging solution. Finally, that is an achievement that is really -- was not so easy to meet with the team of Free2Move eSolution. Our IPO [ Mark Wallbox ] in August got the official certification for safety, conformity and quality from [indiscernible] on top of the clearly official full validation from the automotive industry. So this is the reason why we are confirming our commitment on the plan. We are keep executing even more than before because we are seeing that the growth will be achievable. And as Carlalberto said, what for will be the -- let's say, the achievement of all the action, so the first result of all the actions that we are executing to be ready from quarter 1, 2023 to have a stable growth for the future step of the company. Carlalberto, back to you.

Thank you, Roberto. We can now move to comment and investigate more on Atlante booming results, then I will leave the floor to Stefano. Stefano, floor is yours.

Yes. Good morning, everyone. Thank you very much for the attention. And thank you Carlalberto for the introduction. Just a few days ago, we completed our first year of operations here at Atlante. And I can probably say that this has been a first year of operations full of satisfactory results. First of all, there are many things that went on behind the scenes that you cannot see clearly that do not show up in the numbers that you see, but they were absolutely essential for the results. And for the results that you see today and even more so for what you will see, the results that we will be posting tomorrow. And when I say tomorrow, I mean a very nearby future. The first measure of our success has been on the people front. We have onboarded 80 professionals who are now 80 Atlantes as we like to call ourselves, highly qualified and highly motivated professionals. They have joined us in those last 12 months, when we started with initial endowment of only 5 people from NHOA, 40% female-to-male ratio, which I'm very proud of. And having onboarded both very experienced people from renowned companies around the 4 continents we operate in as well as the young talents, including the onboarding of people coming straight from University, which is another point of pride, I would say. Of course, while hiring people, we have set up the organization and this was only possible at the speed in which we have done, thanks to the full support of NHOA. I want to thank a few colleagues in particular. Ilaria Scarinci, first of all, while congratulating her again, complementing her for the birth of her first child. She was essentially in -- for all the financial-ready process, they had support and acting support. Ludovica Solera supported all the human talent processes, Roberta Romano for the legal and compliance, Chiara Cerri, Teresa Pogliani, the communication pillars -- and by the way, all female colleagues maybe just a coincidence of -- I don't believe in coincidences. So this is -- without them and without the leadership under the leadership of Carlalberto, which has always been inspiring, challenging, of course, but inspiring. And with the stellar support of Giuseppe and Rosati, this will not have been possible. So this is another element of success is NHOA incubated successfully, the second company after having incubated Free2Move eSolution, albeit [ preliminary ] solution, obviously, with the support of Stellantis as well. Then another key factor of the speed at which we operate is the fact that we have a very close need management team. It's only 4 of us. I decided early on to have a small senior management team, myself, Joanne Lavin and Francesco Lamberti where they are at the inception. And then Jacques who joined us from 1st of January. The 4 of us, we work very, very closely together, and I think this formula was essential for us to move at this speed. Of course, we will expand the senior management team. But for the first year, I think this was a very good position. Then, besides the people organization, of course, we had to set up the development platforms. The most obvious to showcase is the business and project development platform. These are the results. You see the numbers you see on this slide. But what you don't see is the other platforms, which are equally important for our [ ACO ] processes and for the -- especially for the future of Atlante. Let me mention, for example, the digital and the technological platforms, both led by our CTO, Francesco. On the digital front, we have set up the Atlante Cloud, which is an ecosystem, let's say, an edifice inside which we will be housing -- we already house them, we will be housing all of the core-operational platforms, digital platforms. For example, the energy management system, which is being developed will be housed inside the Atlante Cloud and will allow to link all of our stations and transform them into energy assets stand-alone and also each of our plants when linked together. Then on the technology side, Francesco's worked on our tech road map, especially closely with Roberto Di Stefano and his teams and Free2Move eSolution. They are, obviously, as you know, they are developing the platform for our e-station, the first one of which with storage will be tested and installed in Q4 and then just a few weeks from now, basically. And then we have an exciting massive rollout plan for 2023. This is on top of the Drosso -- the Drosso project, a unique world-class asset being developed -- being built as we speak -- finalized as we speak, by Free2Move eSolution again with their own proprietary B2G fast-charging technology, a platform upon which the e-station is based, by the way, and which Atlante will acquire as soon as completed. This is -- again, it's such a unique measure of the synergies that we create within the NHOA Group. What [ encology ] road map, obviously also includes working with supply outside the group other than Free2Move eSolution, I mean. And we have a tech watch that covers pretty much all of the relevant hardware and software provided around the globe. Execution was, frankly, the big test that we had to pass in Atlante. Last year, when we launched the Atlante with no real estate assets and no real estate or retail background in the NHOA Group. This was a big challenge, and that was something that we had to prove to you all, to our investors and our shareholders, first of all. And a challenge that we have to prove on 4 countries, by the way. Well, the numbers, again, this allows me to go back to the slide, these numbers, I think, and the map you see underneath clearly shows that we have passed that test. We have passed this, also thanks to Joanne and Jacques efforts in the respective geographies, not at all to be taken for granted because we had said we would start from it and slowly move westwards, but we accelerated and we decided to accelerate at a time when we were still learning. We met with lots of disappointments, of course, in the development phase, especially again for the lack of strong background in that field. But the disappointments, we always use them as learning exercises, learning opportunities. And this learning process will be a continuous one. This is in the DNA of Atlante as in the DNA of the NHOA Group. Meanwhile, I can say that we have found the right formulas, the right partners to work with, and therefore, we have secured enough sites to build out our network in 2022, 2023 is very much, if not all secured, very much advanced for our 2022 rollout. So, in fact, we are developing the sites at a pace which is outstripping our initial plans. So I'm very happy to report the biggest challenge we were facing is past. Not to be -- I don't want to obviously rest on the lower end and think it's over. As I explained, this will be a continuous learning exercise, and we will continue to put lots of efforts in the development and build out. Talking about building, in particular, building, putting stations online is also an area where we had to learn a lot. Although, of course, we have a strong know-how and strong support from NHOA in terms of building out energy assets. But this was a different scale. Many small assets distributed in 4 countries rather than bigger storage systems. So we had to learn and we have to face challenges such as supply chain delays, all the very long lead times that we have to embed in our processes in terms of connecting the stations with local grids once they are constructed. However, these factors are, I would say, they have a one-off effect -- one-off effect in the sense that, of course, after the first year of operations, the opening up and putting stations online will be on a rolling basis, and therefore, the initial delays will be forgotten soon. Finally, I would like to mention one particular achievement, one achievement that I'm particularly proud of the fact that we have been selected and awarded with approximately EUR 23 million of funding under the Connecting Europe facility program. This is a very important program that the European Union has launched to fast track, to accelerate the electrification of the mobility sector, to facilitate the installation of charge infrastructure. And of course, we had to prepare the file at the same time as we were growing the organization. So you can imagine how challenging the exercise was. The final application went in early June, just to give you an idea. Well, receiving those funds will, first of all, accelerate the rollout in all 4 countries because we presented the program covering 4 countries. And even more importantly, it's a sign -- a very important sign of recognition at EU level that Atlante is already a key player for the electrification of Southern Europe. So that, to me, was a very nice way to conclude my short speech is to say also thank you to my teams that worked on this important achievement as well as everything else that we have done in the past 1 year. And of course, again, to say that thank you to the European authorities that have recognized the value of what we're trying to do. And then I think the numbers speak for themselves. What I like very much is the map that we are showing for the first time underneath with the stations in the various stages of development. You see in red, the ones which are online and under construction. Of course, we do not have online any station yet in France, Spain or Portugal, but you can see that we have pretty much covered the 4 geographies already in a quite nice way that shows that our customers will be able to travel freely. This is just the start. The map will soon be more and more densely populated with dots. And that's it, I would like just, once again, to thank all of the amazing people that decided to join Atlante, to join the mission of Atlante, which is an extension of the NHOA mission, fostering the fast-paced change towards an energy world at the remission in our case, the mobility part of the energy portion and be prepared for more excitement to come. Thank you very much.

Thank you, Stefano. And I think we can now move to our Q&A session and together with Giuseppe, Roberto Stefano, together with [indiscernible] for all financial aspects, we are now ready to take any questions you may have. So Tiara, floor is yours to open the Q&A session. Thank you.

[Operator Instructions] The first one will be told by Mr. Pozzi from Mediobanca.

I have 3. First of all, I think in your opening remarks, you mentioned that strong progression in terms of revenues year-on-year. But in Q3, as you pointed out, they were down versus Q2. If I look at the midpoint of the guidance, you probably still need to make EUR 50 million in Q4 to get there. You sound very confident, you can achieve that, and I was wondering if you can give us more color why you're confident. Is it because you have already the delivery schedule for the batteries have firmed up? Or is it because of projects in the Energy Storage are moving through the commissioning phase or you have more visibility on the milestone and revenue recognitions or anything that can give us more confidence to us for the full year guidance that will be appreciated. As a follow-on on this one, maybe in e-Mobility, there's a lot of things going on, as you mentioned in the presentation. I was wondering what is the main driver of growth in the next few quarters? Is it the conversion rate of Stellantis, is it the electrification of the dealerships in North America or the launch of the new product, e-Pro as well that potentially could support the revenues there? And also lastly, the third question, just a recast how many charging points you have at the moment online? And wonder you can give us a sense of the economics there. What I mean by that is do you have an estimation of what utilization rates could be or where they can go on your charging points and how many customers you have per day going through your charging points? That would be helpful. And also lastly, the third question, just a regard how many charging points you have at the moment online -- and wonder you can give us a sense of the economics the -- what I mean by that is do you have an estimation of what utilization rates could be or where they can go on your charging points and how many customers you have per day going through your charging points, that would be helpful.

Thank you think Alessandro. Let me introduce and then handing over to the teams for a more detailed analysis. So on the first one, revenue progression, If you look into the Q3 that is down compared to Q2. Yes, you're right. And you're right also when you say that we do expect approximately EUR 50 million revenues in Q4. And you're right also when you say that we are absolutely confident on achieving that. So the question is why I can anticipate that everything is simply according to the schedule. Yes, obviously, battery deliveries is essential. I'm handing over to Giuseppe to elaborate on that. But let me say that we do have a project, and we are delivering at an execution speed that goes beyond the consequent quarter, okay? So the reason why we share on a quarterly basis, our trading and operational update, and we have always been clear and saying, okay, please do expect volatility because we want to lead in the market for the level of transparency and for the level of financial communication, okay? And so we are prepared for that. But please do not focus too much on that. There's a [indiscernible] to make question because the level of content we had, the level of pipeline we have really goes beyond the concept of quarter volatility. But anyway, I will leave to Guiseppe just elaborate a bit on the level of content that we have for Q4. So Guiseppe and over to you.

Yes. So the answer is quite obvious. We are in the mid-October. So we have a high degree of visibility on the delivery real schedule of equipment that we are receiving and on the actual of other milestone progress including the commissioning of projects. So on a 2-month basis, we are -- I agree of volatile visibility and the potential, so there are some deliveries that are scaled in the second half of December, but the magnitude of those is relatively limited compared to what is instead well inside this year. So we have a high had degree of visibility. And as I said before, we are focusing in this quarter, we are focusing in particular on commercial exports. So the machine is going. So given that the battery environment has stabilized, we are putting a lot of effort on riding the wave in this period to commercialize on other legion price is stabilized and the other commodities that are actually going down. So we are trying to capture that opportunity.

Then on your second question on standard immobility, what is the trigger between the conversion rate is sales, North America and prelaunch I mean all of them are contributing, we'll elaborate on that. But yes, any single point you mentioned is crucial. So maybe slightly less in the short term North America because of the maturity of the market, if you look short term, okay? But in principle, conversion rate, globally sales, the lands and the stability of the Pro and launch of the Pro are essential that the stone all those 3 KPIs compared to between integrators.

No. But like you said in the question there was already almost the answer because clearly, the composition of these 3 factors are giving us the confidence that what we did so far will give us results and growth. There is another factor that I was commenting, I don't remember, it's in quarter 1 or quarter 2, that clearly in Europe, we have been created where in Stellantis there was already in some market relationship with other partners, suppliers. And for sure, these period of time, we even use with Stellantis to, let's say, to migrate from them to us. That means the composition of the growth of the automotive market in electrification our product readiness, the dealer electrification in U.S. and the start of sales in U.S. where the situation is totally different because there was no any partnership, present partnership or something so small that we start really from ground 0 with us. All the composition of this factor and in giving us the confidence that our plan is consistent and solid enough to confirm our commitment on the growth.

On the supply chain, can you give us maybe an indication of the bottlenecks that you had experienced have now been sorted out and we will see a more seamless, let's say, supply chain in Q4?

Yes. It's pretty simple. The answer. Thanks to the support of our 2 shareholders, clearly, when we bought that was May 2021, clearly, there was already a bit of swing, I can say, on the electronic or microchip market industry and there were a company, big corporations that were asking, let's say orders with more than 13, 14 months in. Clearly, at that moment, we were not present in the market, and we were not in our location. Now thanks again to the support of our 2 shareholders we fix the discussion and now we are in allocation with this big corporation. That means that now we are monthly allocated by them and we are monitoring weekly with all this company, everything according with the schedule. Clearly, like I said last time, we are even increasing a bit our stock because this is normal in this period of time to ensure us continuity in production. This was not possible like the previous month, the previous quarter because, again, it was something said that we were entering in a period of time that was very critical, now this has been fixed. We are in allocation. We are receiving confirmation monthly of our allocation and now the stability of the supply chain for us is really in a good shape. And was only electronic, our issue.