Fleury SA
BOVESPA:FLRY3
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Fleury SA
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Good morning, and thank you for holding. Welcome to the Grupo Fleury conference call referring to the results of the fourth quarter 2018. We have with us today Mr. Carlos Marinelli, the company's CEO; Mr. Fernando Leão, CFO, Legal and IR Officer; and Mr. Rodrigo Penido Paes Manso, Senior IR Manager.
We would like to inform you that this event is being recorded. [Operator Instructions] This event is also being broadcast simultaneously through Internet via webcast and can be accessed at the address www.fleury.com.br/ri, where the presentation is also available. You can watch the slides at your own convenience. The replay of this event will be available soon after closing. We would like to remind you that the webcast participants, through the website, can post questions for the Fleury Group.
Before proceeding, we would like to clarify that forward-looking statements made during this conference call referring to the business outlook of the Fleury Group, projections, operating and financial goal are based on beliefs and premises of the company management as well as on information currently available to the group.
These future -- these forward-looking statements are no guarantees of performance as they involve risks, uncertainties and premises. They refer to future events and depend on circumstances that may or may not occur. Investors and analysts should understand that general conditions, conditions of the sector and other operating factors could impact the future results of the Fleury Group and lead to results that differ materially from those expressed in the forward-looking statements.
I would now like to give the floor to Mr. Carlos Marinelli, who will begin the presentation. You may proceed, sir.
Good morning. I would already like to thank all of you for your presence at our conference call for the fourth quarter 2018. The year 2018 was important to consolidate our brand and for our diagnostic medicine platform.
We had strong growth in the regional brands in the most competitive markets like São Paulo and Rio de Janeiro. Our value proposition, of course, is servicing physicians and health operators. At the same time, we moved forward with the Fleury brand in the health market, increasing our participation in the value chain and creating a platform for health. And we're occupying a space where we can generate greater efficiency based on the brand excellence to contribute with a more sustainable model for health.
Our diagnostic medicine platform is in full expansion based on regional brands in the markets of São Paulo with the a+ brand and in Rio de Janeiro with Felippe Mattoso and the + brand. We have new Patient Service Centers to strategically increase our offer of strategic services, setting ourselves aside because of our excellence.
In Slide #3 of the presentation, we would like to show you the main financial highlights for this quarter. Net revenues had a growth of 12.5%, totaling BRL 654 million. During the year, we had a growth of 11.8%, achieving BRL 2.7 billion. Cancellations represented 1.4% and remained stable. In 2018, we maintained this 1.4% with a 27 basis points improvement.
EBITDA reached a margin of 22.2%. During the year, the growth was 11.8% with a margin of 26%. Our net income reached BRL 58 million with a drop of 10%. The variation during the quarter was impacted by a one-off effect in depreciation and financial expenses. Disregarding these one-off effects, we would have had a stable result compared to the fourth quarter '17. In 2018, we reached BRL 332 million, an increase of 3.4%.
We had robust results in operating cash flow that reached BRL 212 million with an increase of 89.8%. In 2018, we reached BRL 701 million with an expansion of 32.5%.
Return on invested capital was high, reaching 41.2%. During this period, we made significant investments for the development of our business, creating new units, enhancing the existing units, renewing our equipment parts and strategic projects.
Finally, yesterday, we announced the payout of dividends referring to the results of 2018 in the amount of BRL 217 million. Along with the other amounts paid out, we reached a payout of 95% and a dividend yield of 4.8%.
On Slides 4, 5 and 6, we present the new units inaugurated as part of the expansion plan. Between October and December, we inaugurated 9 units, 4 of the a+ brands in Rio de Janeiro and 3 for the a+ brand in São Paulo. In Rio de Janeiro, the Labs a+, the units were medium sized and have MRIs. With this, we have increased our portfolio with units in Flamengo and other regions.
In Rio de Janeiro, we also increased the offer of our premium brand with large units. The large unit is in Barra da Tijuca, a strategic site for the brand, and we have an ever-growing audience for our services. This unit has full services, including 2 MRI equipments.
We have another unit in Botafogo, concluding our offer in the south of the city in São Paulo. With the a+ brand, we opened 3 units in regions with an important flow of potential clients, in Chácara Flora and other regions.
We ended the year with 36 a+ units in São Paulo, increasing our CapEx clarity after 2 years of beginning our expansion plan. We reached a total of 53 new inaugurated units, totaling 19,000 square meters of surface area. This has enabled us to capture market share and also offer more services to our customers.
We now go on to Slide #7, where we show you the operating highlights. We have just announced the signing of the contract for the acquisition of the LAFE brand in Rio de Janeiro. We're awaiting approval of the Administrative Council for Economic Defense. This will increase our platform in the region with 32 Patient Service Centers and exclusive offer of Clinical Analyzes, a segment in which we have constant growth.
We also announced the acquisition of Santécorp, a company that operates in health management services. This is an important channel to offer solutions for corporate health and care coordination. We continue working in personalized and precision medicine segment through our R&D department.
We have completed our diagnostic portfolio in oncology. We're now testing drug resistance to fight lung cancer, targeting the most accurate drug treatment for each case. We also have inaugurated the Fleury Lab that will enable us to be more expeditious and more efficient in our transformation.
We're beginning with innovation and transformation of new products. We participated in the TechEmerge project in Brazil through the World Bank International Finance Corporation. We're working with 3 international start-ups. And among these projects, we're developing new technologies in health with a use of artificial intelligence to detect early on [ dementia ] and abnormalities in CT scans and noninvasive tests for the detection of ulcer-causing bacteria.
We have more than 130 start-ups in diagnosis in Brazil. We also have 10 -- 15 projects and new technologies and B2B within our hospital operation, and we have 2 new hospitals we're working with in the first quarter of 2019. In January, we began operations in Casa de Saúde São José in Rio de Janeiro. And in January -- or February, we began operations in the recently inaugurated Sírio Libanês Hospital in Brasília.
Therefore, we will continue presenting the operating highlights for this quarter. The NPS reached 76.8%, which shows a high level of differentiation that we have in our services. I would also like to register the awards received by the company in the fourth quarter. Because of our excellent service, we were considered the best brand in the country in diagnostic medicine by the Ibero-Brazilian Customer Relationship in [ this year ].
And because of our customer service, we got the first place in a survey carried out by Revista Época and the Reclame Aqui Portal, involving 8 million clients in the portal. For the second consecutive year, we were part of the most valuable brands of Brazil. We are the only company in the health area to achieve this.
In terms of sustainability, for the eighth time in the health care category, we were part of the sustainability index, and we were chosen to become part of the Business Sustainability Index of B3.
I would like to highlight that in 2018, we increased our market share, strengthening our presence in diagnostic medicine through our brand portfolio, which has made us highly competitive. In a very challenging year, we're open to the needs and the opportunities of the sector. And we have a range of services in the Fleury brand, where we're beginning to offer services and diagnostic medicine.
Now once again, we're including the therapeutic chain in -- as part of our services. And we are going to begin orthopedic and low complexity services.
Another strategic pillar shows that we're fully confident that the foundation for these different initiatives is based on the excellent and the good services offered. With this, the result of change in the present will enable us to have longevity in a sustainable way for all shareholders.
I would now like to give the floor to our CFO to continue on presenting our results, and I am available for questions and answers.
Thank you, Carlos. A good day to all of you. We continue with the presentation on Slide #9, where we speak about gross revenue by business segment. In the quarter, we had a growth of 12.2%, amounting to BRL 7 million (sic) [ BRL 70 million ]. The growth shows the strong development of regional brands in Rio de Janeiro. Now if we don't consider the units that come from IRN and Serdil in the first and second quarters of 2018, the growth revenue had an organic growth of 7.4%. As part of this context, our Patient Service Centers had a growth of 2.8%, or 6.4% if we consider only organic growth.
Now in regional growth, excluding Rio de Janeiro, the growth was 45-and-some percent. During the quarter, we concluded the integration of IRN and Serdil brands, equaling out our accounting operations and this in terms of revenues and expenses for the term.
Organic growth represented 11%. The regional brands in Rio de Janeiro had a growth of 14.8%. The Fleury brand had a retraction of 0.8%. And finally, our operations in Hospitals had a growth of 12.2%.
The graph to the right carries out the same analysis for 2018. Total gross revenue grew 11.3%, adding up to BRL 2.9 billion. This is without considering the units of IRN and Serdil. Growth revenue had an organic growth of 8.6%, with a highlight for regional brands, excluding Rio de Janeiro, and a growth of 11.7%. Once again, we emphasize the growth of the brands in Rio de Janeiro with BRL 9 million. And for the Fleury brand, we have further retraction of 2.6%.
Now if we speak about regional brands, excluding Rio de Janeiro, we had a growth of 45.6% in gross revenue and 15.4%. Now in São Paulo, we had strong organic growth of 29.6%, representing 50% of our operations.
As mentioned by Carlos, we inaugurated 3 units of the a+ brand. And this didn't have very much impact in the growth that we had this semester. In the operations of the Northeast, we also had a growth, and this growth was consolidated as of the second semester of 2018.
The regional brands had an increase of 14.3% in gross revenue, and these are the consistent results that we have seen in Rio de Janeiro.
We have also had a growth in the Felippe Mattoso brand. We inaugurated 6 Patient Service Centers in Rio de Janeiro. Now the Fleury brand had a retraction and a gross revenue of 9.9%. All of this is due to the reduction in beneficiaries in the last few years and the changes in health plans.
The results from premium market showed that it is beginning to become more stable in the last few months. Despite the very challenging scenario, we have been able to grow in this market because this reflects the perception of quality that people have of our health services. Now we're again in the search for new customers for the Fleury brand.
In Slide #11, we show you our expansion plan. We had an expansion of 53 units in 2018. This represents a new area of 19,400 square meters. And most of these areas have less than 24 months of operation. Therefore, they're still going through the curve of maturity. The graph to the left shows you the increase of efficiency. We reached 100% during the quarter. In 2018, this indicator reached 98%.
In the next slide, we speak about cancellations and revenue totaling BRL 64 million in 2018. We reached BRL 2.7 billion.
In the next slide, #13, in the graph to the left, we speak about our cost structure. During the quarter, we had an increase of 12.5%. We had only a growth of 10.8% in terms of our cost/net revenue ratio. We're working with cooperative care on the coordination of care and the cost with health plans. As a counterpart, we also had a significant increase of 42% in operating expenses.
I would like to highlight the effect that we had due to the integration of Serdil and IRN brands, representing BRL 5 million as costs during the semester. In terms of operating expenses, we had increase of 17.8% and 29% in terms of expenses.
Once again, in the expenses/net revenue ratio in the same period of 2017, there was a onetime effect due to some fiscal debit. In 2018, the growth was 17.8%, reaching BRL 305 million in the ratio with net revenue. We also worked with a different mix of brands with a highlight to our regional brands.
We go on to the next slide to speak about EBITDA with an increase of 22.2%, reaching BRL 145.4 million. We had operational gains and margin gains. Once again, the EBITDA was 145.4% (sic) [ BRL 145.4 million ], an increase of 11.2% vis-à-vis the previous year. In 2018, the EBITDA margin was up 11.8% with a stable increase of 26%.
In the next slide, #15, we speak about the net income. That reached BRL 58.2 million for the quarter with a reduction of 10%. The margin had a decrease to 12.4% vis-à-vis the fourth quarter in 2017. This is due to onetime effects of financial expenses.
Once again, we have that amount of BRL 5 million for the consolidation of Serdil and IRN brands. We reached BRL 331.6 million, and this does not include our noncurrent assets. Otherwise, our net income would have been very similar to that of the previous year. Once again, net income totaled BRL 331.6 million, a growth of 3.4%.
In the graph to the left, you see our operating cash flow that had a strong expansion of 89.8%, reaching BRL 212.1 million. Now the EBITDA conversion reached 32.5%. Now this is due to a better cash situation because of our receivable -- reduction in the term of receivable. And we obtained -- well, we reached an increase of 32.5% vis-à-vis the previous year.
To the right, we show you our CapEx that reached BRL 141.4 million, an increase of 39.8% in the fourth quarter of 2018. We once again invested in start-up projects and in our digital projects. The CapEx reached BRL 323 million for the full year, an increase of 9.5% vis-à-vis the CapEx for the previous year.
The ROIC remained at high levels, reaching 42% almost for the semester and showing a reduction in our investment plan. In our NPS score, we reached 76.8% with a reduction of the level that we normally have.
In the next slide, #18, you can see our average daily trading volume. That reached BRL 40.9 million.
On Slide #19, we would like to show you the payout of dividends, BRL 217.3 million referring to the full year 2018 added to -- while distributed total amount represents BRL 315 million, a 95% payout rate with a dividend yield of 4.8%.
On Slide #20, we show you our IR events calendar.
Having concluded the presentation, we will go on to the question-and-answer session. Thank you for your participation.
[Operator Instructions] Our first question is from Mr. Joseph Giordano from JPMorgan.
I would like to explore the trends in the Fleury brand. I would like to gain a better understanding of the pressure that you feel from the operators. You always say that this is very difficult. But I would like to better understand what is happening in terms of your change in the collection model. We see that some players in the industry are working with flat rates for the health operations. The second question I would like to explore, how should we look upon these new initiatives in terms of how management that will leverage the brand and have an impact on revenues? Which is your collection model and the business model that you're basing yourselves on for this segment?
Joseph, this is Carlos Marinelli. Thank you for the questions. When it comes to the payment model, we have observed several initiatives everywhere. And we have broadly discussed this and have worked proposals that include this topic. We have to be very careful with the risk, as you mentioned. We're not a risk company. We're not a company that has specific mechanism or competencies for risks. We have to work on a different model. That will include risks but always from a viewpoint where we have limits for the risks with an understanding that we are covered in certain situations. This is not saying that we're not going to do this. But we have done this with a necessary care to deliver true value to the system. We shouldn't bring the whole systemic risk to the company. What we have done is to speak about this openly with several operators. We're holding discussion on how these models would be and which would be the range of our actions. It is our understanding nevertheless that this has to be accompanied by other types of negotiations. To give you an idea, we have discussed this broadly in a context where we include primary attention with other models. We can take on a certain level of risk as part of a specific model where we have a clinical protocol that will guarantee that we can work with certain cases with expected practices. We firmly believe that the operator, the insurance companies and health plans consider risk as their main competency. Of course, we will always cooperate to reduce this risk. We also cooperate to guarantee the sustainability of the system but always, as part of our value proposition, our techniques, by knowing our shortcomings to act in this field of risk, which is not our main focus or our main competency. We are moving in that direction. We're considering several models to be able to share with in well-organized scenarios, and we will have some novelties in the near future. When it comes to the new services that you mentioned, this is a [ reasoned ] price for the speed with which we implement new services. Last year, we included Santécorp in the company. This has generated new business for our business in the company. We are guaranteeing a better use of assets in the company and mainly helping payers to also attain better results because of a better management and care of our portfolio, this brand sustainability to the system. Another important novelty that we inaugurated last week was the merger of some units. Last week, we inaugurated the first phase devoted fully to these -- at our [ bottom ] units. It is a winning project that has the characteristics of excellence and differentiated share of the Fleury brand in a very sheltering environment, different from what you normally observe in the market. We do not only work with service, but throughout the entire chain, carrying out partnerships to be able to offer a full solution, bringing better results to operators not only in the field of medication but also organization of treatment and of course, the best service to the customer with high satisfaction levels. We strongly believe that this initiative can and should leverage our present-day business with a lesser need for investment in assets and of course, maintaining our return on invested capital. This is a trust for the Fleury brand. It is a trust for other brands, and we have to continue to believe in this combination of business, our usual business and the diagnostics business.
Mr. Guilherme Palhares from BTG Pactual would like to pose a question.
To continue on with the question previously, considering that your regional brands are very important in the percentage of your revenue and as you have made new acquisitions and opened new Patient Service Centers, what are you going to do to maintain your margins going forward, considering this new business mix for the company? And how is the company going to try to protect its profitability due to the growth coming ahead? During the presentation, you spoke about this premium market that seems to be stabilizing. In previous calls, we mentioned that this market has a single-digit decrease. Now which is your outlook of this market and which is the outlook going forward? And you also spoke about your increase of market share in this premium market. And what underlies your increase in market share? Those are my 2 questions.
This is Carlos Marinelli addressing your questions. First of all, to speak about margins, I think we have a quarter to celebrate this because we have had an expressive growth in regional brands, maintaining our margins. This is within a scenario with an important amount of PSCs under ramp-up. Jointly, we are opening new PSCs. We have pre-operational expenses that are important, the ramp-up of these PSCs and at the same time, we have been able to offset headwinds by maintaining our margin. There has been an expressive increase in our margins because of the rapid ramp-up. This enables us to maintain our margins. And unfortunately, something that could offset our performance in the market. The performance is not the one we would wish to have. It's the one that we are able to have in the premium market due to the market conditions in the last few years. And even in years with a [ steeper ] fashion, we continue to grow in this market, so this specific moment of flat growth for the Fleury brand. If you look at the entire year, we do have some growth. And we have become -- we have gotten very well prepared for this brand. We're going to expand when convenient and capture market share with a strong expansion in regional brands with a business that has proven to be highly feasible and guarantees these flat margins that historically are the highest margins in the sector and oftentimes, above those of other sectors. Once again, based on a partnership with the entire value chain where prices do constitute a difficulty, we're in a scenario where we have to cooperate in terms of price. This profitability arising from the efficiency of our operation, price reduction and a growth in actions, that leads to a sustainability of margin. When you think about the outlook of the premium market, perhaps the most important thing to say is that it has become more stable. We do not see a scenario of growth for the premium market, but we no longer see a drop when we observed that drop of 6.7% in the last quarter. It was a sign. We thought that there was a slowdown in the Fleury brand in the last few years. But we were still higher than the market in general, and we continue to see this. We see that we have higher margins than the market in general. And why do we have this conviction? Because we have partners who also work in the premium market. We have secondary source of that information to read the market, and this shows us that even due to the slowdown in the premium market, we continue to grow as we did in 2018 at rates that are lower, of course. This means that in a shrinking market, we continue to grow and take market share. When it comes to the outlook, as I mentioned, everything that we have seen at the beginning of the year point towards greater stability in this market and perhaps a reaction, although it might be a minor reaction and stability. As I mentioned in the last question, we're also capturing this market not only in diagnostic medicine. Our proposal is to expand our value chain with services that will represent solutions for operators, for physicians and patients by absorbing those items that have an impact on the value chain and adding value to everybody, guaranteeing the usual sustainability with greater efficiency. This is our outlook for the premium market. And I highlight the high and intermediate segment that are a reason of price for us because of the growth that we have had and the return on invested capital, the maturity of the units as was highlighted. All of this, once again, makes us be ever more engaged to continue on in this path.
Mr. Fred Mendes from Bradesco Bank would like to pose a question.
I have 2 questions. The first refers to a drop of revenues of 7%. If you could give us more color on what happens here, prices and volume. And if you could think about a margin expansion, a relevant margin expansion for some of the regional brands.
Thank you for your question. Could you please repeat the first question? We were not able to understand it.
Regarding the first question, if you could speak more about your drop of revenue of almost 1% in the Fleury brand. And I would like to gain a better understanding of what represents price and volume.
When it comes to this drop, there's nothing that we can clearly point to that refers to either price or volume. Because of the market dynamic, we have a concentration of some portfolio. And oftentimes, in negotiations, we tend to work more with one portfolio or other with operators, but this has not been made very clear for us. I think it's due to a general drop in the market. We see a market that shows a drop of 0.8%. Everybody speaks about this, observes this and perhaps it's an issue of downgrade and price restriction in companies. It's a very small variation and it is very spread out. These trends continue to be the same. When it comes to the margin mix of regional brands, this is a fundamental issue for the future. Diluting fixed costs has become very important in our new PSCs. We no longer have the preoperational costs, that is to say without revenues in these regional brands and guaranteeing a higher volume to have operating efficiency for the brand. What we see going forward is something that stimulates us to continue on this path of strong growth for regional brands, a gain in efficiency, and all of this translates into a healthier margin environment.
Our next question comes from Mr. Marco Calvi from Itaú BBA.
My first question is a follow-up on the ramp-up of regional brands. When we look at the evolution of gross margin, there was a growth for the semester. My question is the following. If we face a scenario where the growth of revenue in the brand is similar to what we have seen now and if we have stability in the rebrand, is there the possibility that the company will have an expansion of gross margin cash flow in 2019 based on the ramp-up of the regional brands? My question is, where are we when it comes to the potential for growth of the regional brands? And the second question, year-after-year, we see an increase in net revenue. And let's imagine a scenario where revenues have an evolution similar to what we saw in 2018. Can we imagine the dilution of the SG&A during the year therefore?
Marco, thank you for the question. This is Carlos speaking. So this is the objective. Of course, in regional brands, while it is very important for the group as a whole, if we look 2 or 3 years ago, we see that they have become ever more relevant with a great deal of growth. This is a strategy that was set up in the past. We knew that because of the economic recession and growth limitations of the past, the great thrust for growth would end up being the regional brands, although we are fond of the Fleury brand. Although we consider the brand as being a highlight in the company, perhaps a flagship, and we do everything to maintain it healthy and growing, economic conditions would lead us to greater growth within the regional brands. We carried out the expansion at the right time. We have obtained a significant ramp-up. This reduction of costs can be seen clearly. And because of price and positioning issues, we do have a growth in regional brands that is higher to us than the growth of the Fleury's brand. Now as part of our platform for growth, as we presented in third quarter and in a highly challenging scenario in 2018, we're very confident that we're on the right path. And for 2019, of course, we want to gain even more efficiencies, dilute costs further such as SG&A. We work with this incessantly day after day to ensure better opportunities for efficiency and dilution. And of course, this allows us to have margin gains. This does not necessarily mean a margin expansion for the company. We do have new projects. We have personalized and precision medicine. The expansion, we have decreased the speed of expansion since 2018. We do have a very important PSC, that is the [indiscernible]. So the future plans, when we look towards the long term, is stability in both chains and making the necessary investments to become a relevant player and a private [indiscernible] player in the health sector.
Mariana Hernandes from Crédit Suisse would like to pose a question.
The first question refer to your ticket dynamic. We see that it has had a growth during the year. And the dynamic of your brands, and how does this relate to the changes in laboratory exams and analysis? And another very important factor is the reduction in costs. What is that we can expect throughout 2019? Will these costs be more stable?
Mariana, this is Fernando. To speak about the ticket, this reflects the group as a whole, a group that has become more efficient, and we have several revenues here. We have a mix. The mix of Fleury, the Fleury brand, the impact of the price increase that took place at the beginning of the year, approximately 15% of the broader Consumer Price Index. So there are some drivers that were decreased while others increased. Now the impact that we have from the price increase has been given. It was of the amount that I mentioned. If we look at the broader Consumer Price Index last year, we also work with a brand mix to try to neutralize this impact. Regarding the second point on the variation of personnel costs as part of the percentage of revenues, we should remember that a variation of mix is important in this context. We have had significant gains in our cost management for personnel. We had a reduction of costs with benefits. And we believe that this issue is very important when we've debated in the market. Now the change of our revenue mix also has had an impact on this ratio, on this proportion. We're not estimating a continuous improvement in this line item. We are moving towards an enhancement quarter-on-quarter with the greater maturity of our Patient Service Centers. At present, our pace is somewhat different compared to the pace that we had in the last 2 years. Therefore, this coming interplay of the new Patient Service Centers show that this is a positive benefit. And through this cost reduction, we are attaining a certain level of maturity after 2 years of arduously working on cost reduction.
And if I could have another very quick follow-up. The number of exams seems to be dropping. At first, there was a more accentuated drop. And where does this trend come from per region?
Mariana, this is Rodrigo. The drop in the number of exams per card was a drop of 5% during the quarter. It shows you the following. Per operation, we have had a growth, a growth of approximately 2%, which is quite historical. So while we speak about a mix in operations in Rio de Janeiro, we see a drop of number of exams per patient card. Once again, this is the mix effect that leads to this higher drop.
If you allow me to complement your question, this is Carlos. It all depends on the mix, if we grow in terms of images, and we had a great deal of growth in terms of Serdil and IRN, we have images now. Images represent a single exam, one test scan, one ultrasound, one MRI. Now the other exams normally include a larger number of exams. A physician will tend to request a series of exams, a blood test, cholesterol, the -- for CH. Now it's natural that when you're comparing MRI with a blood exam, we're speaking about a single image, a single exam requested compared to other exams.
[Operator Instructions] With this, we would like to end the question-and-answer session by returning the floor to Mr. Carlos Marinelli for his closing remarks.
Thank you for your participation in another of our conference calls. In truth, 2018 was a highly challenging year. But with these figures, we end one more cycle by showing how vigorous the company is not only in terms of revenue but also net income, EBITDA and a strong cash generation.
We think that 2019 will not be less challenging, although we do have a very positive outlook. We need to see the positive impact of all of this in our business and in the economy as a whole. We're highly confident that this strategy for the continuous consolidation of the sector and an expansion of activity will bring sustainability to the system.
And we have precision medicine offering new solutions not only to physicians but also to patients. And this has been a winning strategy in 2019.
I would like to thank all of you for your presence, and we hope to see you in the next conference call or in our interactions in the market. Have a good day, and thank you very much.
This will be -- the conference call ends here. Thank you very much for your participation. Have a good afternoon.