JHSF Participacoes SA

BOVESPA:JHSF3

Earnings Call Transcript 2021-Q3

[Mara Dias, executive]

Good afternoon, everybody. Welcome to JHSF Conference for the 3Q '22 earnings result. Thiago Alonso de Oliveira, CEO and CFO; and myself, Mara Boaventura Dias, IRO, are present here today. The presentation will be recorded. [Operator Instructions] This Quarter, we have Caroline, interpreter of Brazilian sign language, in order to increase accessibility in our communications. This meeting is being transmitted simultaneously via YouTube through JHSF Participacoes page via webcast where you may dial the presentation, which can be accessed on the Investor Relations website at ir.jhsf.com.br. This quarter, we'll also be transmitting via TC station. [Operator Instructions]

Before proceeding, we would like to clarify that any statements that may be done during this conference call regarding business prospects, projections and operational and financial goals of the company, our beliefs and assumptions of the company's Board of Directors as well as any information currently available, they involve risks and uncertainties because they refer to future events and, therefore, depend on circumstances that may or may not occur. Changes in macroeconomic policy or legislation and other operational factors may affect the future performance of the company and lead to results that differ materially from those expressed in such future considerations.

Now I would like to give the floor to Thiago, who will begin the presentation. Please, Thiago, you may proceed.

[Thiago de Oliveira, executive]

Thank you, Mara, for the presentation. Good afternoon, everybody, who is here with us. And before we begin commenting the details of our results in 3Q '21, it's worth mentioning or emphasizing a quarter in which we saw almost a return to normality in relation to the hours, opening hours, of activities that have been quite affected by the pandemic restrictions, especially in shopping malls and retail and also restaurants.

What we will be seeing through the presentation when we go into details is that the company has seen in every business front the clients came back very quickly in those activities that were more affected, what for us translates in the fact that the clients still bet and want to come to those places that the company develops and cares with so much attention, so much quality, with excellence so that we go on in our proposal of transforming quality of life of our customers.

All this is possible because we have a team of almost 4,000 people who, independent of the period we're going through, followed with their mentality of waking up early, going to bed late, in order to take quality and excellence to our clients. So on behalf of the whole administration, for them, I give our deep thanks in relation to the results of one more quarter that was challenging in many aspects but, at the same time, our shareholders were rewarded because of the results that we're going to present on the next slides.

So on Slide 3 of our presentation, to talk about real estate development. Here, we are making a comparison of sales of 3Q '20 against 3Q '21. We see a change that is quite expressive between one project that the inventory is almost over, which is Fazenda Boa Vista, and we still have values to extract from that development that are associated to accounts receivables in houses for rental that the company invested throughout the quarter, and I'll talk about this later on; and a migration to 2 projects that had a little bit smaller participation last year, which is Boa Vista Estates as well as Boa Vista Village. And so we see the continuity of our activities, of sales activities, in real estate coming from this development.

When we see the 9 months, we see a growth of 56% (sic) [ 46% ] between what was finished last year and what's being finished now in 2021. In terms of net revenue if we compare with 3Q '20, we sold 14% more. And if we compare to 3Q '19, there was a growth of 265%. So as far as revenue is concerned, we saw a very important growth. And equally expressive is the growth of EBITDA in the same period of 2 years, and still an EBITDA growth considering the second quarter of last year.

And this is a bit of what we will be talking about today, our EBITDA margin just like our gross margin, every time we have a mix of products, so the 2 upper graphs of this page, where it's heavier in land plots and less in build project, which is more like 3Q '20 than 3Q '21, we'll see a higher gross margin and EBITDA margin that's also higher and vice versa. We closed this quarter with an operational margin or better gross margin in real estate of 72% (sic) [ 73% ]. And when we look at the market, and we see the reference companies in the market, we'll see numbers between 25% and 45%. So 73% that we have for gross margin is a figure that we find good, not to say extremely good, so variations that we can see of 5 points up to 10 points from one quarter to the other. They always have to be seen in relation to this mix reinforced. Every time we sell more plants, the margin will be higher, the growth in EBITDA margins. Every time we have developments, so we have a reduction in those margins as compared to the land plots.

Next page, talking about shopping malls and digital retail. A piece of data that's important for us is that in the comparison of the third Q '19, before the pandemic, the sales in the shopping malls grew 47%, quite expressive. And we also brought a comparison comparing to the third quarter of last year, which was the quarter where we had starting to get out of that process of restriction, but that was not as yet a normal quarter, not as normal as this year. And there was also an important growth around 74% in the store sales.

What does that mean? It means that as soon as the mall opens, the customers go back to the malls. They start buying again in the stores that are working with us. And for us who are there on a daily basis, following that moment in the shopping malls, it shows that our decision back there to really stay hand-in-hand with our partners and be flexible with them in relation to rental payments allowed us to preserve the quality of the mix of the shopping malls. And every time the client went back to the shopping malls and found the same stores and the same people there, they were well served, and that was converted in purchasing, in sales actually.

When you look at the right, operational indicators, the growth of the indicators are all above 35%. So here, corroborating that previous indicator of sales in stores, a strong figure, and we emphasized there the growth of the indicators in relation to what happened in 3Q '20.

And before we go to net revenue, I would like to emphasize for all of you that the company, different from most companies that have business in shopping malls and that report results in the market, decided not to have a linear revenue. So what we're showing here for you is what actually happened in '19, '20 and what's happening in '21. So the growth of our net revenue against 3Q '20 is 73% and, if we look at last year, 129% of growth.

In terms of adjusted EBITDA, we grew 41% against 2019 and 271% as compared to 3Q '20. So in this division of digital retail and shopping malls, in shopping, occupation rate quite healthy; and occupation cost, quite healthy. Growth of the net revenue, more than 300% vis-a-vis 2019 and 200-some percent vis-a-vis 2020. When we look at digital alone, CJ Fashion grew 123%; and CJ Concierge, 324% (sic) [ 374% ]. So there is a demonstration here of how much not only we preserved value but we generated value in the company's assets throughout the last 2 years.

And now next page, looking at hospitality and gastronomy. What have we seen? Growth of average daily, 37% vis-a-vis '19, 21% against '20; RevPAR, 41% against '19, almost 29% against 2020. Net revenue grew 34% before the pandemic and 150% against the same quarter last year where especially hotels were more affected here. Hotels and gastronomy were more affected because of the lockdown.

In terms of number of couverts sold, we grew almost 65%, 120% against 2020. And we saw a growth of almost 65% of delivery orders against 3Q '20; average couvert, 12% growth against '19. And the growth of the mean couvert in 2021 had 2 effects to be clarified. The first, the time, the hours, were limited in July. What affects wine sales especially is that changes the composition of average couvert, and also more participation of the product, Gero Panini, which is a project with a lower ticket, mean ticket. If you exclude that, the average couvert grew in our restaurants. And finally, we saw EBITDA grow against 2019 more than 100%, and we revert to a negative EBITDA of BRL 7 million in 3Q '20 last year to BRL 16.4 million in this last quarter.

Now airport. In terms of airport, we have been showing you growth of airplanes in the garage, and we can see this in the growth of net revenue. And this growth in hangars is not as yet 100% reflected in the growth of movement and also not in the growth of fuel volume used to fuel these airplanes. In spite of that, we grew almost 90% the amount of landings and takeoff year-to-year and almost 130% in the volume of aviation fuel that was provided in the airport, so the airport that was inaugurated at the end of 2019 with 2 hangars.

And last year, in this time of the year, we were finishing an expansion that took it to 5 floors, and then we started the process of second expansion now that adds 6 more hangars to the airport. So the conclusion of this second expansion, we will have 11 hangars and, afterwards, 17. So we still see the airport as a business that has solid foundations. And that now with this flexibilization or going back to not having so much restriction, we have more operations and sell more fuel with better performance than they had in the last quarters.

Now next page, Page 7. So in a consolidated way, what happened to the company? How were we before the pandemic? Where are we at right now? We grew 166% of the net revenue. If we look at the third Q last year, we grew 35%, the net revenue. Gross profit grew 270% against 2019 and grew 20% (sic) [ 19% ] against 3Q '20. Looking at adjusted EBITDA, we see a movement that's quite similar to what happened in gross profit, 300% higher adjusted EBITDA against 17%, considering the same period last year. And also regarding net profit, 127% against 23% compared to last year.

So in spite of our gross margin having dropped a bit because of the mix of real state, this quarter was richer in finished products. And there was a growth in hospitality and gastronomy, and the gross margin is lower and due to growth in the malls where the gross margin is less than real estate. All that helps us to explain this variation in the margin, gross margin as well as EBITDA margin.

If you are curious and you want to go in further detail, you can take a look at the results release of the company where the mix of gross margin as well as EBITDA margin is better explained if you open segment by segment. And if you have any questions, please contact us through Q&A during this teleconference or through our e-mail and we can then provide you with my more information.

Next page, Mara would like to comment something since you have helped us to take ESG forward.

[Mara Dias, executive]

Thank you, Thiago. During 3Q '21, we did a very important work quite consistent in the diagnosis of the company, where are we at in relation to business sustainability, and now we started the fourth Q, where we want to get to. So we are finishing our goals and long-term commitments to ESG. So it's a consistent work, and we'll soon be disseminating our goals.

And we describe some of our actions. I just want to emphasize governance. We have members that are independent in our Board, 75% are independent. And for this kind of company, I think it's one of the highest ones that we have analyzed and studied. So there is a level of governance that's quite good, and all these members are part of some committee. We have 7 advisory committees. So we will soon have interesting news on goals and commitments.

Summarizing with everything that Thiago said, we had a quarter as compared to 2019 that we were above, especially considering the malls and hospitality that had to be closed, those operations, so they are better now, better than 2019. That was quite a good year. And also after October 25, we paid dividends anticipating at the end of the year. We paid BRL 125 million and, adding to what we had paid in May, almost BRL 270 million in 2021.

And with that, I finish my presentation, I would like to go to Q&A.

[Mara Dias, executive]

[Operator Instructions]

[Thiago de Oliveira, executive]

Mara, as you collect questions, we will leave this page. For one more quarter on our webcast, for those of you who can help these institutions that are here, that we're now nominating, you only have to point your camera in those who can donate. This is what we have been trying to do in the solidarity actions, not only do in the pandemic, but these are organizations with which we had some relation before the pandemic. And now during the pandemic, we decided to increase our participation and also to disseminate more of these institutions whenever we have the opportunity of talking to our investors or those people who are interested in getting to know better our company.

[Mara Dias, executive]

Thank you, Thiago. There are some questions here. One of them, you touched on it during your presentation. Could you explain about the operational margins. What was the impact? What did we see? What kind of impact we saw?

[Thiago de Oliveira, executive]

It's a very interesting question. And we know that DRE in the balance, some of the activities that are quite different. So when we commented that there was a drop in the gross margin, we're talking about 8.9% of gross margin, but we are forgetting that there was a growth in the gross profit of almost 20% for the company. We had BRL 263 million since last year and BRL 312 million in the third quarter this year. So nominal grew. And I think everybody lives on the nominal, and we understand the percentage. And we have to be able to do the analysis, and we're here to help you understand why this percentage may vary in a company like ours.

So within the real estate segment, the variation will come from the composition between land plot sales and product sales or finished products. When we look at our margin of finished products, it's above that interval of 25% to 45%, which is the figure that we see in the companies that are well known in our market as the most efficient one in this process. So we believe that our margin is quite healthy. And when we see land plot sales, we think the margin is better than that.

Second important point to bear in mind is that with the growth of retail activities, in digital, within a sales unit that we call recurrent sales, which is non-shopping mall, we also have to understand that the more the digital grows, the more retail grows, the percentage margin will drop in spite of the nominal margin growing. So if we look now to the 3Q '21, our margin dropped from 73% to 64% in this division. On the other hand, we doubled the nominal margin.

I am saying this here to say that the percent of margin is important, yes, but more important than the percentage margin is what's going to change it and what's happening in terms of nominal margin. So although the margin fell around 9 percentile points in this recurrent sales, we doubled the nominal result. And we're happy with that type of result.

If we do the same analysis in restaurants and airport, we'll get to the same conclusion. We started at a negative margin last year. You all know how difficult last year was. So we had a loss in gross result, and we revert to that to a positive result of BRL 20 million. So we had a variation of minus BRL 3 million to more than BRL 20 million. So this is the variation we had in terms of gross result. And what about this gross margin of hotels and restaurants? Since the total is smaller, it generates an effect in the consolidated margin.

And everything I said here applies when we look at the EBITDA margin of the company. So in the consolidated EBITDA, we lost 8.5 points. However, if we look at the nominal margin, we gained BRL 39 million or we grew 17% of the nominal EBITDA of the company. So it seems for us good growth in spite of a small margin loss, operational margin loss, as I have mentioned.

Nevertheless, if we look at the net margin of the company, it dropped from 49% to 45% for BP. So on the other hand, the company is delivering this quarter BRL 40 million more in net profit as compared to last year or 23% more. So nominal margin grew in spite of a reduction of a percentage margin that is justified by the mix of the incorporation of real estate by the pickup of recurrent sales in the consolidated that has higher participation and with less operational margins and also resumption of hospitality and gastronomy.

[Mara Dias, executive]

Thiago, I have a question here, explain cash generation in the third quarter and the 9 months.

[Thiago de Oliveira, executive]

Just starting before cash generation, we're talking about a 9-month period where the company generated BRL 730 million for their shareholders. And this money, the same volume shows that we had expressive improvement. And the current liquidity, it grew BRL 711 million. What does that mean? More assets and less equities. So the balance is being done. The same company that generates BRL 730 million, that improved in BRL 711 million.

We had 4 large investments that, considering the nature of business where this money was invested, which is real estate, they will go into the operational cash flow. And these 4 investments are an investment of BRL 65 million in the construction of houses in Boa Vista to a rental, 13 houses that we have there with a value of BRL 260 million versus the investment of BRL 65 million. So we invested BRL 65 million, and we generated a business of BRL 260 million. So it seems to us that a fourfold more is a good return rate.

Second business we did, we expanded the area of Boa Vista Village project, buying BRL 55 million in land plots that will generate a general sales value of about BRL 400 million. So to invest BRL 55 million to sell BRL 400 million also seems to be a very good return rate that will be generated to our shareholders in the future.

Third investment. In the middle of last year, in August, we acquired a terrain in the city of Sao Paulo by BRL 150 million and the payment would happen in the end of next year. We had this payment conditioned to an update according to inflation. And we decided to not remain on that risk of PCA, and we had a discount of almost 10% in the debt. So we anticipated this payment, around BRL 150 million, to the 3Q '21 when it should have been paid 3Q '22. And this land plot, BRL 150 million, generates for the company with a project that we call Rio Park, which is a project that we estimate BRL 1.5 billion in PSV and also a shopping mall of 30,000 square meters. So we imagine a good return for the company from the use of this cash.

And fourth element. Now during the third quarter, we bought an area of 6 million square meters in Boa Vista Complex. In this area, we paid per square meter BRL 23. So this is BRL 140 million, and we imagine to have a PSV generation of BRL 7 billion. So if we look at the net margin of our real estate activity or even the EBITDA margin, we can understand how much we'll get back of this BRL 7 billion of PSV to face the investment in buying that land plot. So the fourth Boa Vista plot, Rio Park plot, the additional plots of the village in this project of the houses, are not investments that the company will repeat at every quarter. But all of them were conducted within the third Q '21.

Second point that I would like to emphasize in cash generation, and I apologize if I'm giving a long answer, but it's important to understand. Throughout 2021, we grew our receivables portfolio more than BRL 540 million, and they are indexed to INCC or IPCA or IGPM. If you want this breakdown, please, in our results release, it's quite open there for you to understand. So it's a working capital that the company has established cash for that, and that's being well paid because of those indexes.

And out of this BRL 540 million that we grew the receivables portfolio, BRL 700 million or almost BRL 1.2 billion will come in the next 365 days. So my message, the cash has been invested in the land plots and was also invested in accounts receivable, in the plot with a margin that is robust in receivables with a mean short term. And in spite of that, the company increased its current liquidity in BRL 711 million. If you have any questions, please ask us.

[Mara Dias, executive]

You have commented that buying plots is important, and there are some companies about that. Could you comment about the perspective of real estate, especially in the scenario of increased -- about the land bank and how do we feel this new scenario.

[Thiago de Oliveira, executive]

Okay. About land bank, the company has 3 areas where it concentrates its land bank. The first one is Boa Vista Complex, where we have a total of investment, Fazenda plus Village plus Estates plus Fourth Phase, about 28 million square meters. Fazenda Boa Vista, as I commented before, during the webcast, is almost also 12 million square meters. Boa Vista Village, 3 million square meters. And between Boa Vista Estates and the Fourth Phase, we have 12 million to 13 million square meters. So out of those 28 million, 12 million are okay, 3 million are under construction, Boa Vista Village. And of the 6.5 million of Boa Vista Estates, we started selling land plots in this land bank in the second quarter of this year.

To share large numbers with you, we acquired the area of Boa Vista Estates in August last year, paying BRL 134 million. And we sold, between the second and fourth quarter of this year, a small fraction of the whole thing. But that is a total of almost BRL 400 million. And the Fourth Phase of Boa Vista, Fazenda Boa Vista, has not been launched, but our preliminary studies indicate a PSV of around BRL 7 billion. So we should have BRL 7 billion for Faze 4, BRL 7 billion for the Estates and BRL 4 billion for Boa Vista Village. If you want those numbers in detail and more precise figures, I invite you to go to our Investor Relations page in our website and go inside the spreadsheet where that is quite dissected, so to say, and with very precise figures.

Second area of land bank that our company has is in Sao Paulo. We call it Cidade Jardim. It has the project that is under construction, which is Fazenda Cidade Jardim and 3 large land plots that the company has in the same complex. The data of PSV estimates are also in the spreadsheet that I mentioned before. And there is a third area where the company has a land bank, which is Parque Catarina, that is the same site where Catarina Fashion outlet is, Sao Paulo Catarina International Executive Airport, and we're going to have Catarina Town. So there, you also have the distribution of that area and the projection of PSV that the company sees for that area.

If we were going to bring these numbers together, our estimate for PSV is between BRL 35 billion to BRL 40 billion based on areas where the company has investment for 10 to 15 years, in areas that are quite consolidated. In the case of Sao Paulo Complex, Cidade Jardim, Parque Catarina, outlet in airport and Boa Vista Complex because we have already demonstrated in relation to Fazenda Boa Vista, just like the figures that we presented for Boa Vista Estates as well as Boa Vista Village.

Another question that came about that, Mara, was about what we can expect regarding the interest rates impacting that segment. It's not just our company, it's not just Brazil, it's the world. Every time you have real interest rates that are high, we have real estate activities suffering some type of deceleration. And the opposite is true. As a company, we are all the time looking towards these indicators and understanding where the company has its capital exposure and where the company has its scenarios to manage this land bank.

And we like to emphasize the land bank management because a feature that we have, and it's different from most companies that construct in Brazil, many of them are based in swap agreements. And these agreements generated, the companies had obligation to finish the project so that they can do the swap. In our case, what we make different is, as I have described before, we buy the land bank. So we can sell it when the moment is favorable to us. Since the margins in these projects are quite bold, quite robust, as I have presented here, we go through scenarios where the sales slow down. And that does not force us to lower the price of land plots that have high value, and that can be sold in a better moment when there is reacceleration of sales flow.

[Mara Dias, executive]

Thiago, there are many questions here about the decree by the government that flexibilizes commercial airplanes in private airports. Is this positive? Does it have impact? Are we going to review the model of the airport?

[Thiago de Oliveira, executive]

I believe that for those who develop an airport for executive airplanes and still looking at that as its business plan, it has little representativity. However, for those who are more skeptical in relation to believing in the existence of this segment of executive aviation, we, today, JHSF, are the biggest executive airplanes operator in Brazil. So there is a perception that there is another deep plan shall this market not be as promising as what we pursue. So objectively for us, in the short term, that does not make much difference. But if you were skeptical, maybe you should not be so skeptical about this investment.

[Mara Dias, executive]

Thiago, there are also some questions about a project of Usina Sao Paulo and our expectation about Pinheiros.

[Thiago de Oliveira, executive]

For those who don't follow closely, Rio Pinheiros in Sao Paulo is a river that, for many decades, it received sewage and, therefore, the river smells bad and the surroundings of the river really are bad. In the last few years, there is huge work by Sabesp in the sense of as a company responsible for collecting treating sewages to avoid that the sewage is thrown in the river. And with that, the improvements can already be seen regarding the quality of the water of the river and also relating to the quality of the surroundings.

When I mentioned the land bank, I commented that part of the land bank is in the surroundings of Cidade Jardim. And that land bank is quite close to this area of Pinheiros river that is going through the cleaning, not just the water but the margins also are being revitalized. So you have bike lanes there. And a linear park is being organized there, just like we have seen happen in large cities of the world that have reorganized, so to say, their rivers. And we may mention Paris, London and there are many, many, many.

And we saw from the concession that the company, MI, did to an area that connects to margins of Pinheiros river that are exactly in front of Parque Cidade Jardim. So much of our land bank is an area where we have interest that it is pretty in line and that will value the city of Sao Paulo as well as the land bank that the company has. So this is the reason why we acquired control of that concessionary. They have a concession of 23 years, which JHSF hopes to leave a legacy for the city, for MI and for our clients in relation to the development of this area of the concession.

[Mara Dias, executive]

Thank you, Thiago. There is a question via TC station, asking you to talk about the 5-year perspective. I think you mentioned a lot, real estate, land bank projects. Could you talk a bit about the other projects within the growth project of our company?

[Thiago de Oliveira, executive]

We have mentioned a lot that there is an expressive PSV that derivates from a land bank that is paid in that we are comfortable in relation to the timing of developing it. And much of this development that we see to the future generates growth avenues for recurrent profit or revenue, 5 projects that we have, one that's almost finished, which is the expansion of Cidade Jardim Shopping. The second is the expansion of Catarina Fashion for next year. We should have operations by the end of the year. And the third one that we have is a project within this land plot that we bought in Rio Park and that we anticipate in 10 years the payment. We mentioned a bit of it. The fourth project is the construction of a shopping mall within Boa Vista Complex, more specifically in Boa Vista Estate.

And the fifth project is a project that the company is developing in Faria Lima Avenue at the corner of [ Lupo to the Magallanes ]. If you are from Sao Paulo, we're talking about the heart of the financial center of the country like Wall Street. It's a region that for many years, our company has invested in apartments, residencies and commercial buildings that have been sold, where we operate 3 restaurants and where soon we will be operating Fasano Hotel in that region. So it's an area that we are very present as a company, and we do not have our participation with this area of shopping malls that will open room for us to grow in that shopping, of retail activity and, at the same time, the activity of restaurants. So shopping malls, 3 growth avenues, expansion in the 2 most important shopping malls that we have, always healthy malls, high occupation rate, 2 projects that are projects of mixed use, Rio Park plus Boa Vista Complex and, at last, greenfield that we have in a neighborhood that we know for many years already that is in Faria Lima.

Looking at hospitality and gastronomy, we have some growth opportunities for gastronomy in Brazil but also abroad. We, in some occasions, have mentioned movements towards the U.S. So we should have in the next coming months, after a period quite impacted for gastronomy in New York, we should inaugurate New York Fasano. And the same movement should go to Miami very soon. And we're also looking at some opportunities in other cities, not only in the U.S. but also in the main European capital. So we're looking more towards abroad in the growth of the division gastronomy more than towards Brazil.

And when I talked about the airport, I guess I mentioned that we're also seeing a growth from 2 to 5 hangars, from 5 to 11, from 11 to 17. This is what we want to do throughout the next coming years. Our goal for the airport is to have an amount of airplanes, that are based in our airport, around 250 airplanes. If you don't know much of this market, Brazil is the second largest market in executive aviation, and the city of Sao Paulo concentrates 40% of the flights. So we saw here an opportunity, a huge market not well served by commercial airports, on what kind of service they provide to passengers of executive aviation. And therefore, an opportunity of market gap that we are filling step-by-step. In less than 2 years, we are already the largest operator of executive airplanes; or better, the largest company for hangars for those airplanes. And we intend to keep growing on top of a fleet that is large and keeps growing.

[Mara Dias, executive]

Thank you, Thiago. Excellent explanation. I think it's quite clear, and we have almost 1 hour here. And I think we were able to answer all the questions we had. If there is anything left, I am available at our website or by our telephone. And I invite everybody to visit us. We are back in our office. In the future, whenever possible, if you're interested, you may visit our investments, our assets. Many have been there. And Thiago, your final considerations, please.

[Thiago de Oliveira, executive]

Once again, Mara, thank you for your help in regards to the webcast; to everybody who participated for the time they dedicated to listen to our message for you. It's never too much for us to thank our clients for the support they have provided us, our business partners for trusting us to promote their spaces for their business. And to our team that is relentless, we're very proud to be part of this team. And I also want to thank for the energy, dedication and the focus and quality and excellence in everything you do. For all of you here from the internal team who are here with us, on behalf of the Steering Board and of the directors, I really thank you for all your dedication to our project. Thank you all, and stay well.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]