Ser Educacional S.A. (SEER3) Earnings Call Transcript & Summary

Hello everyone. Welcome to Ser Educacional's Conference Call for the company's fourth quarterly report of 2021. With me we have Janyo Diniz as the CEO; Joao Aguiar CFO; Rodrigo Alves IRO. Let's start our conference call. We'd like to inform you that this event is being recorded. [Operator Instructions]. Statement done about our -- looking-forward statement, operating financial forecasts and targets are assumptions of the company's board as well as available information. Forward-looking statements are not a guarantee of future performances. They involve risks, uncertainties and assumptions because they are related to future events and therefore, depend on circumstances that may or may not occur. Investors should understand that economic conditions in the industry and other operating factors may also affect the future performance of Ser Educacional, including the different results of the ones in these statements. I'll now hand over to in -- the call, Janyo Diniz, CEO of the Ser Educacional. Please go ahead, Mr. Janyo.

Good morning. Thank you for attending our web now on the fourth quarter 2021 results. Let's go directly to Slide 4 where we present the highlights of the quarter, a period that reflected the main goals we seek to achieve here, consistently increasing our student base, combining organic growth with acquisitions allowing net revenue to grow with resilient results to this challenging period we went through with the pandemic. At the same time, we create avenues for growth to feed our continuing education ecosystem innovating and building new competitive advantages. The growth of the student base demonstrates the success of the implementation of our digital teaching model, which was the main driver of this growth. and became relevant in our business, which we only consolidate file from January, which will double this current student base. The performance of digital education with the growth of our medical course consolidating UNESC and UNIFACIMED, the acquisition made during the year allowed us to grow our student base and operating results in general. And to complete it in this fourth quarter, we made 3 relevant moves to our ecosystem: acquisition of Delinea, one of the largest depending (sic) [ independent] content producers in Brazil; Plantao Veterinario, a hospital for pets in Recife and the creation of b.Uni, our fintech focused on serving the education market are very important for our strategy. On Slide 5, we detail the development of our ecosystem that grow accelerated-ly and create new sources of revenue generate and use for our educational assets. For us, a successful continuing education ecosystem should go beyond offering course to students. It needs to be omnipresent in their lives. This is why we have Ubiqua, our academic model, super important in the market. And students tend to work to study more for a longer time in their lives. For this, we have to prepare ourselves to offer courses and be present in their lives when they are not studying. This is why we are gradually becoming a company that offers B2C, B2B and B2B2C continuing education in a omni-channel offer. And this seeks to be increasingly ubiquitous in the lives of our students. In this concept, we are accelerating medicine -- veterinary medicine and dentistry, and this helps to transform the campuses into real centers of service to the public and university education, allowing us to offer postgraduate and extension courses. This year, this concept will become a reality, and we are creating the CDM Vertical, the CDM course, myriad of courses, which will bring differentiated service to the public in our selected campuses for multi health clinics. CDM, dentistry CDO and Veterinary Medicine, CDMV that will allow us to offer courses in the medical residency, postgraduate and extension courses. We also have investments in Ed Tech last year through the acquisitions, not only of the Delinea, Delinea also of ProvaFacil, both specialized in the B2B market. This year, we will launch Peixe 30, an innovative careers app, that allows companies and professionals to find each other through a search system. And we are also having technical possibilities and also one solution that the professional will be able to follow -- to be followed up in their careers and also with courses that will be with their lives in the market. All participants in the market through the -- we will help all the market participants through the financial services that we will offer in this fintech. And adding the regulated and unregulated markets, we continue to invest in GoKursos, our continuing education marketplace that is developing a source of revenue generation, very important pillar for our company in the medium and long term. That year, GoKursos in -- in (sic) [it] opened its operations in the B2B market and opened its platform to offer courses from info producers of open courses and other educational institutions. And we are very happy with the evolution of GoKursos, and we are convinced that this platform will be an important generator of value for Ser Educacional and it will become one of the most important in its segment. On Slide 7, we celebrate the beginning of operations in December of b.Uni, which has more than 15,000 current accounts open, but still operating in a soft open regime and in the B-a-a-S, a BaaS model, while we wait approval from the Central Bank to operate as this fintech. On Slide 8, we have FAEL, which had its transaction announced last year and which was concluded in January of this year. With FAEL, our digital learning operation, will be boosted and Ser Educacional will become a relevant player in this segment. Our plan is not only have synergies and also leverage revenues by introducing our health and engineering courses on its [ bespoke ] Network. To do so, we are also opening omni-channel units in at least 10 new cities this year. enabling the network of hubs to have important support with complete laboratories, leveraging its sales. On Slide 9, I show acquisitions and new companies that we are opening our continuing education ecosystem, and we are expanding the addressable market. It is an important movement that positions us to benefit from the transformation that Brazilian higher education is undergoing. Now I give the floor to Joao de Aguiar, who will present the results for the quarter. Thank you so much.

Thank you, Janyo. Hello, everyone, and thank you for joining us. Let's go to Slide 11, where we present the operating results of funding. We have a solid growth, especially in hybrid learning. This growth shows that the company was able to take advantage of the recovery in demand and success of Ubiqua. Digital education, on the other hand, continued to grow, but on a smaller scale. This result -- this enrollment result, better speaking, associated with the reduction of student dropout in the -- to pre-pandemic levels. Digital Learning was the highlight of the semester and hybrid teaching had an important development. After a challenging summer, from 2021, we could stop the decline in the hybrid learning students, and we could resume the growth in this segment in 2022, having a stable student base to -- compared to last year. On Slide 13, our hybrid learning student base, including health and engineering course, is close to 70% of the total base. the total student base, including digital education is reaching almost 60%. This explains the resilience of our average ticket over this year, as shown on Slide 14. We have reduced the discounts in order to attract new students. And we had a mix of courses in addition to the entry of 2 new faculties of medicine that collaborated with improvement of this mix. In digital education, the average flat ticket is also explained by the change in the mix. We focused on increasing the volume of students by offering technology courses that jumped from 33% of the student base to [ 42% ]. So we had a positive quarter of (sic) [in] terms of our student base and average ticket. As we can see on Slide 16, we present a 19% of growth which means an organic growth of our digital education, the growth of our medical course through acquisitions and the teaching hybrid, which had a very challenging years. Adjusted EBITDA, on the other hand, grew by almost 11% compared to last year. And we could have the cost of acquiring customers. And we saw a high of our cost because in-person activities, happened and we could resume of on-site activities that led us to spend more third-party services. And the profit had a slightly bigger drop in the margin due to the increase, and we will detail more. In this sense, we believe that despite the challenging 2021, we had a very positive year that positions Ser Educacional to resume its growth with levels in the midst of the COVID-19 pandemic. We see here the participation of having this education system and its participation on the educational medicine courses. We can see the consolidation of digital education here has a bigger participation, which explains our financial resilience in this very challenging period for hybrid education in which fortunately, from the second half of 2021, began the sack of the [ COVID ] resumption of growth that we are seeing for 2020. Today, we have a more solid company resuming we taking top line growth and with better distributed results than in previous years, with hybrid education, representing 39% of EBITDA and 23% in medicine. On Slide 18. We have the comparative results with a more easier way. We can see here the importance of EBITDA in the results of the company, which is 8% of our margin. Another important point is the impact of the noncash impact of the IFRS 16, which is 16% of points and 20% of the net income, which is quite significant and important for us to better understand our results. On Slide 20, we show now our accounts receivable, which shows a very important solution on the sustainability of operational system. Our students have to take care of distance and also focus on our objectives in the income system. This trimester we have the results of the pandemic that the numbers of losing students are going back and we're having better payment with the growth of student space. We can see that PMR is now a little bit of growth comparing to the last year. So we have here a better perspective of this medium receive -- accounts to receive. On Slide 21, we show our income before and after CapEx when we call about the impact in our ecosystem in this flow. We have in 2020, some fees to pay, which have a big impact on our costs. But in other way, we have -- we paid BRL 28 million in taxes, which accounted to what we've been receiving at the end of 2021. We had only the better results in 2021. We could like better and better these numbers. We have -- the EBITDA adjusted this year was more than 70%, which indicates very healthy economic results. Finally, we have on Slide 22. We keep investing on our ecosystem and expanding of the number of unities (sic) [entities] have like a bigger number of rent. And finally, we have our gross net indebtedness, which -- as I mentioned earlier, which has increased due to strategic acquisitions that will help our growth in the coming years and which are still in the initial phase of consolidation in our results as they generate synergies. We went from practically 0 net debt to around 1.2 in this quarter. And after the FAEL acquisition, we will have leverage below 20x , which we believe is comfortable for our operational profile, given our objectives of 2022 to reduce this leverage through generating synergies from these acquisitions. These were my comments, and now I'll give the floor back to Janyo for closing comments.

Thank you, Aguiar. Let's go to Slide 25 where we talk about the gathering of students in 2022. As you guys can see, in 2022, will be a key year developing our hybrid teaching system, where we focus on gathering more than 20% of our students base. We should say here that we are working off managing ticket comparing to the courses and bettering the mix, of course, we have. We have in 2022, the payment -- cost of the course we are looking for a better partnership with the commercial sites and giving better discounts for some students. In digital teaching, we have the scenery a little bit different. We are now in a better position with the acquisition of FAEL, and we have a little bit of lowering of accounts in [ 2019 ]. This -- we have the hybrid teaching system that is going to be a very important part of our base and income growing over 22% and being a possible of growing our efficiency base here. Closing our presentation, we have on Slide 25, the summarize of our intentions. First, we want to integrate FAEL, which combined with the organic growth of our digital education makes us one of the biggest players in this segment in Brazil and has important opportunities to generate synergies and a new revenues of income generating to be working from now on. Second, we are taking a better focus on the hybrid education system, which is going to better our income as itself. We want to continue development of our education further, education acquisition, which after the phase of elaborating and creation of the fronts in which we are operating, we entered the phase of development and expansion, increasing the use of educational assets, creating new sources of revenue for allow us to increase the addressable marketing gaining more and more opportunities in scale and finally. We have to maintain this focus in this culture of being an innovative creative company, which has to a very advanced education technology base. It only makes sense, we are supported by solid cash generation and good profitability in decades in controlled financial leverage. We want to generate value in this transformational moment in the landscape in education in Brazil. Now we open for questions and answers. Thank you.

[Operator Instructions] First question is from [ Luca S. Martin, Kesine ].

First, what you guys are hoping for the application in the remote teaching and presential teaching, I would like to know a little bit about that. And the second question is, if you see a battle in the mix of teaching like the presential teaching in the health field, how important is this for you guys?

Rodrigo here. I'm going to start answering. So when we talk about the ticket, we made a strategical decision trying to give our internal inflation. We understand that the demand on the hybrid teaching system is in a way, pereneous (sic) [perennial]. And in other ways, as we saw in the first semester, that the volume of gathering, new students, we can see a lot of clarity that we are going to have growth in the gathering new students and rematriculation of students on the presential teaching system, when the students are back on site, and we see the work trying to support the prices and the ticket because we see the exchange of 9% going to the base of the students. When you talk about like old students and new students on the presential education system, we try to see that we can give enough discount, but not bigger than the last semesters because the level of discount we give is very big in the sector, what we give, but we have to give this back to the capitation of new students. In this Digital field, we see the consolidation of FAEL, which today has a structure -- is using the structure of Ser Educacional. FAEL by itself grows 10% in capitation of new students because we see here the results of the prices -- the prices of FAEL related to Ser Educacional. So we concentrated on these new brands. When you talk about the price, we don't give the pricing back to the new students because we are in a moment of growth, and we want to grow the student base. And this is going to be very important as we see for the incoming year. Without this intake of new students, this development of the student base is not going to give us in a way, the space to keep growing. I have to talk about Health mix. Yes, the health field is going to be one -- we have like the migration of courses, where the human sized courses are going to the presential to the digital system. At Ser, we have the big expertise in the health field. And we are one of the enterprises in the market with the biggest participation of the health portfolio. So 45%, we are based on health field and with the biggest margin we have in the market and talking about the student base. This tendency, we can talk about here that we have to concentrate having a better service for the population and give this continued education system to better the service in the entities.

I would like to complement this answer. Here, the ticket median as our colleagues, here said and talking about the mix of health. We are talking about unities that are growing, and we are having a growth of new courses. And with that, a new gathering intake of students here.

Our next question is from Leandro Bastos, sell-side analyst.

I have 2 questions. First, if you could mention your renewal process? I know Rodrigo talked a bit about it. And there is the margin, the increase of inflation, so this is a first question. The second one about FAEL. What are your first impressions now that integration is going on and you had 10% higher student intake in this cycle? This is a little better to what you expected. These are my 2 questions.

Okay. Things are within the expected. Inflation hadn't played a role. It's the opposite. We are on the expected. With FAEL, we started integration process. This integration is going smoothly. We are improving our courses portfolio. And with these units open, we will enhance our offer especially in the health courses, which is an area that FAEL is on. And with the support of the super campus, we will support the campus that do not have laboratories, for example. This is the growth we expected. And as we only saw our results in January. And this integration happened smoothly, we started in the middle of the intake of the students. We migrated to commercial systems of Ser Educacional. We are improving both Ser Educacional and FAEL systems. But we still do not do it for a long time to see the results. Let me complement the blended learning margins. The current process is beneficial for the margin. But we had a process that reduced the occupation in the buildings. But we did -- we needed to transfer the price, and we needed to work hard to have re-enrollment. And these blended learning are the ones that suffer the most in our company.

Our next question is from Yan Cesquim, a sell-side analyst from BGT Pactual (sic) [BTG Pactual].

I have 3 questions, and they are short ones. First of them is a follow-up of our colleagues' questions. It's about the first cycle in student intake in 2022 have this online teaching. It has been growing a lot, but there is the integration with FAEL. And I'm sure you need to pay more attention in this student intake, but I would like to know why we have a drop in this acquisition. Second question is about FAEL integration process. I would like to know where we stand and what are the challenges and the opportunities that you see in this integration. And finally, third one is about the pipeline. I would like to know what's the appetite your -- it's a robust pipeline. And where do you see the opportunities in this pipeline? This is it.

Let me try to answer all of them. If I forget something, please let me know. Student intake dropping out in online learning, we are not worried because of it. Because we made some decisions and the -- we have the expected numbers for the digital online learning. 2022 is the year that we are going back to the levels we had before. And when we have a higher inflation there's a competition between online learning and blended learning, especially in the courses where Ser Educacional is stronger. We always need to bear in mind that when the education market has an aggressive pricing in the tickets, enrollment student intake will follow. Maybe we have a nice student intake in volume when we have lower prices. But in adding [ plans ] we will be higher. So we need to prepare FAEL better so that FAEL can use Ser Educacional structure. Our mix of courses should be dedicated to more resilient segments, which is the health one. And we should avoid discuss pricing avoid to discuss tickets in the market strategy. So that we do not have evasion. We do not have dropouts later of our students. In digital learning, we have 200,000 students. So our company has a nice participation of the students. Now we need to have a good integration and make our offer quality improving with good margins. And our digital learning has margins over than 30%. It's better than had lower prices and after that as having a higher dropout of students. With regards to FAEL integration, it's going very nice -- nicely. We would like to have integrated FAEL at the end of last year, and we did that in middle of January. But this was a negative. It ended up to be being a good thing. We could have a student intake process supporting the existing structure. And we -- today, they have a curricular matrix of Ser Educacional, and they use their structure. Now we need to have a commercial -- a higher commercial integration, and we need to sell courses of Ser Educacional and be able to use laboratories and other structures that now we can't use because we integrated in a short time. M&A pipeline we analyze acquisitions always. But today, the priority is to integrate the acquisitions we have done. We need to combine these acquisitions organically so that we have a return of those acquisitions that is higher, and there's the shopping spree that we have been doing in the last 18 months.

Our next question is Vitor Tomita, sell-side analysts of Sachs (sic) [Goldman Sachs].

We have 2 of them. The first one is about student intake. Could you discuss more the competition dynamics in the first Q? There are aggressive things on the online learning. The competition is more aggressively aggressive now at the end of this cycle. And I would like to have a follow-up on M&A.

There's the evaluation of this sector, there are some rumors being made about integration of big companies and some states. Are we having a higher consolidation about the current situation of the market about regulation or we are going to have biased, more focused in integrations? Regarding student intake, Ser Educacional decided that as we adjusted the average ticket for new students and old ones, we decided to keep some sales some discounts that we did in every parts of Brazil. So depending the areas, they analyze the student intake in every place, and we adjusted on it. We do not have a single discount for the whole Brazil, but we need to consider the courses and the different states in Brazil. When we work in a new area, we have more discounts and then we adjust the discounts when people are more used to our brand. By the end of the student intake, there were some aggressive proposals. Sometimes, we offered discounts for a whole semester. But in the long run, this can be dangerous because if we had a great student intake because of prices, we can have a drop out of students -- a massive drop out of the students in the long run because the poor students suffered a lot in this period of uncertainty. And when schools cannot offer good discounts, their prices end up being affected. We are maintaining our average ticket growing and some players had some unique discounts, reducing the average ticket and afterwards, they had to adjust the prices. And we had the problem in the offer, doing the offers as the competition, the big players did, if we do that, the smaller players do so. Now regarding M&A, from the beginning of the year, we changed our strategy. But what I can say is Ser Educacional has a rebuy problem that is on now. We are trusting our project but the cheapest M&A to do so is to rebuy shares. Our shares are with a certain price, and the best path is to have the integrations done to develop these integrations as well to work the rebuying shares in a good way and this is the priority of the company. We didn't discard transactions in the market with a higher volume. Now according to our project development. There are some results that we deliver even with bigger players, and this seems to be the best deal to be done.

Now the next question is Marcelo Santos, sell-side analyst.

I have 2 questions. First, if you guys could focus a little bit in medicine and how you guys see the price competition with your [ conference ]. And then I would like to know a little bit about marketing and how this the evolution of -- digital evolution, how this affects the price in the market field. These are the questions.

Marcelo, the medicine market is doing really well. We have a reduction in the numbers of students and it's historical and it's happening, and we didn't have any problem in the intake of students in medicine this year. What you have in the medicine market, we have more the number of students [ in place ] and because also some enterprises have the right to teach [ game ] in the justice, and then they can open the student places, which in the marketing field, we see this growing of the ticket price is part of this digital development here. We have lots of assets being created here. We have the acquisition of edu techs, and it's going to bring the market to a better level. And we have to see as a natural system that in market, we have some costs that are growing in digital field. But then we have in the other side, the fixed cost of rating and unit is like these are changing moment. We are changing from enterprise that in the past, 90% of the income came from presential education, to be now a business that has the digital system and new initiatives that I have to talk to you about new branches we are opening here as a change in natural development in our system.

Just a little follow-up. When you talk about growing. So we can talk about the growing of the income?

Yes, I think the income is going to be growing.

Next question is from Vinicius Ribeiro.

We have -- when you talk about student intake, we have a different angle. I would like to know a little bit is the difference between the -- in the hybrid system, how is the role of the digital student and the presential, how you see the competition there? How do you think the rentability of the hybrid system when you guys are focusing or occupating the campy (sic) [campus] that's been empty in the last years. When -- I would like to know about the rentability of every individual field. And if this decision was important to focus more on the insight system.

Yes, you -- you're right on point. The digital system has a big margin, has a very nice result. But the hybrid system has an MVP superior which make these courses to suffer a lot the last years. So the business itself might not look as a good business. What we did then was to rise the hybrid system where you have like this capacity of leverage, the operational system, it's easy to better the margin in the hybrid system than trying to better the margin on the digital system when you already have a very good margin. Our digital teaching system here is the more rentable in the market today. So it looks for me that it's a very important position we are taking here to try to leverage the business that have bigger chance to jump forward with better results. So as we started in 2021, the second semester, a better intake for the hybrid system. When we talk about nutrition, where we have like the competition based on them choosing between the digital system or the hybrid system. We prefer that this -- it's better to use our assets when have the hybrid system. This is important for us. It's important to use our unities to prepare those sites for our omni-channel offering. So the more we have the use of those assets, presential assets, we'll be better prepared for the future. Let me talk about what happened during the pandemic, Vinicius. On the Praxis, it makes us a lot lighter. So we can benefit from this system having a bigger volume of students. In 2022, we are going back to a moment where the pandemic goes back. We want to have a lighter enterprise that can be ready for the future, as our colleague here said.

The next question is from [ Carlos Perera ], Analyst sell side from [ CommuniSite ].

As [ Carlos ] is not here, I'm going to read his question. And I have 2 questions. First, when we talk about the acquisition in 2022, you guys have a fall of 70% on the digital system. So you guys have any problem transferring this? I would like to know if there is still a fight on the digital field for intake of students.

Thank you, Rodrigo, and [ Carlos ], for the question. I think we answered already the first, very clear. And the second is when we talk about the costs, we are transferring the median ticket of the market, and we are trying not to go in this price competition fights and -- on the hybrid system, but in the digital system, we see that it's going well, the way we are and it's working for us.

The next question is from Mauricio Cepeda, analyst sell-side.

I would like to ask about the diversification. When we talk about the acquisitions in medicine also you guys should work as other enterprises are doing to treat it as not connect business. When we see about veterinary -- we talk about veterinary, should you guys divide those courses and have, like, distinguish the strategies in the business? And my other question is, when we talk about remote education system, what we call digital system, do you guys see the possibility of saturation of the demand? We understand, as you guys said already, there was a big interest during the pandemic. And now we're going back to a more normal pattern as specialists have been saying, there is already a big offering of remote courses and this is already going to a saturation of the market? And the third question is, when we talk about the third-party courses, you guys are re-taking the on-site Praxis, how this is done? You guys have some partnerships with third parties? And if this should change now, the level of engineering is going to a better level. Do you guys see as development on those courses -- or should you guys internalize?

Mauricio, there was lots of questions here. We're going to answer my expertise here. The market, the health education market as we're getting now, in medicine and veterinary dentistry are markets that are very interesting, and we are going on the first trimester, we're going to focus on the evolution of those business and as well as the digital courses. When we look at the results of this trimester, we opened already on the segregation of the results what we call the new results. So we can see the income of these new acquisitions and how this participate on our general income. So we're going to focus on the segregation on this operational system so we can distinguish between them. We understand health education market can be treated, segregated, separated, and they can be offered separated and as other segments. But they are, in a way, very small in our internal results and some things here can emerge all on separating those assets. I see a problem here that doesn't make sense. I'm going to give now to Janyo to talk about the digital assets.

Mauricio, talking about the possibility of get to the saturation point on the digital courses, I don't see it like that. What I see that after a period of big growth what we have like started in 2020, we see the level of offering is still growing new institutions are growing this market. But this is a market, this is a product of scale. At the end, there will be very few competitors at the end what have to focus here is the model of those courses are going to change as we have recurring on the formation. So that we have like students coming back to us to adequate themselves to the market or what they are having as challenges in the fields to have -- keep growing. This is a big tendency in the digital system -- education system. So maybe this growing is not going to be so fast as it was in the last 2 years, but this growing is going be on place. And we have some changes in the market itself. So in the end, some people can talk about now some older people that are trying to use this system. And now we are having a new public. This is the people who are going to give like a second or third, fourth education, a year extension course. So some courses, focusing on some specific necessity they have. So we have here extension of the period of the client as soon they stay with us. And this is the strategy that we are going to implement this system. So we stay connected to those students along their professional career. That's the idea. I think Aguiar now is going to talk about talk about...

Talk about Ser, we have 3 pillars. We have the monitoring and intake. When we talk about the mix, health mix is a bigger part of our portfolio. The second pillar are the access to the digital platforms. When we talk about digital students, we say about this participation. We have the bigger access to those platforms. The third point, when you talk about the third-party partnerships, when we see this volume as this happens in a way in the last times, when you have like [ Omama ], this third party's partners where they are having -- we are working on those brands. On campus of third parties, we are seeing how this partnership is working. So we have a bigger transfer to those sites with the bigger volume of students and a bigger revenue. We gain on scale in the volume. So we (sic) [we're] not looking for a reduction of that. We're going to see growing of the intake, but we have to see how the internalization of those systems is not going to be possible for us. That's the way we're going to be working forward.

[Operator Instructions] Our next question is Tito, buy side analyst, LIS Capital. I think we have a problem with Tito, so I'll read your question. Okay. They say, was the digital student intake ex-FAEL below the company's internal expectations? If so, what do you intend to do to improve the next digital intake -- student intake cycles?

Well, I don't see this way. We need to pay attention in the combined student intake with FAEL student intake that improved 10%, and our position in the market, we don't believe that our digital learning should be a segment that reduce prices to be successful. We could have a group -- a good student base improvement in the last 2 years. And we believe that our positioning by integrating with FAEL and the reposition of Ser Educacional on the digital learning, we will have profit by doing so. We have a company that doesn't depend on only one market. We need to see the opportunities ahead of us. When one market has the pricing more aggressive, we can reduce our position and transfer it for other markets with a better possibility of growth.

There are no more questions, so we close the Q&A session. And now I hand it over to Mr. Janyo Diniz for the last considerations.

I'd like to thank you all for joining our results, and we are here to help you with other further clarifications. Thank you, everyone. Have a nice afternoon.

The results video conference regarding 2021 Q4 is closed. The Department of Investor Relations is available to answer any more questions. Thank you so much. Have a nice day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]