05/08/2025 Results Presentation Transcription 1H25 Download

Speakers

→ Eduardo Guilisasti - CEO

→ Osvaldo Solar - CFO

→ Daniela Lama - IRO

Moderator

Daniela Lama

→ Good morning, everyone. My name is Daniela remainder of the year, together with Eduardo

Lama, Investor Relations Officer at Viña Concha y Guilisasti, CEO of Viña Concha y Toro.

Toro, and I would like to thank you for joining us for this results presentation corresponding to the first We will then conclude with the financial results for the half of the year 2025. second quarter and 2025 year-to-date, with Osvaldo

Solar, the company's CFO.

Before we begin, please note that on the right-hand side of your screen you can choose the language in For a more detailed quarterly analysis, please refer which you would like to listen. The presentation we to the press release published on Monday, August 4. will be reviewing today is already available on our And if you have any further questions or doubts, feel website in Spanish and English. free to contact me directly.

First, let me read a brief disclaimer. To close today’s presentation, we will open up a

Q&A session to answer all the questions you send us

This presentation contains forward-looking through the platform’s chat. statements based on information available up to this moment and should be considered as made in With that, I now leave you with Eduardo Guilisasti. good faith. These statements are subject to risks and uncertainties beyond the company’s control (The presentation begins) that could cause Viña Concha y Toro’s actual results to differ materially from those stated here.

Speaker

Eduardo Guilisasti

On this occasion, we will take a closer look at the results for the first half of the year. → Good morning, everyone. I appreciate you taking the time to listen to our comments on the second

We will begin with an overview of the industry quarter and, more specifically, the first half of the context, key highlights, and our outlook for the year. I meet with you after each semester and in this noitatneserp stluser

52H1 case, as Daniela already mentioned, we want to put is quite the opposite. everything into context and highlight what we believe are the most relevant aspects of what has happened Since then, we have been adjusting the company to in the industry and how it affected and was reflected this new reality, with implications across all areas, not in our company’s performance. just production, but also commercial, in the way we are adapting our portfolio, rethinking our operations in

In the first place, and I think it is something that our offices to align with this new reality, and reworking always needs to be emphasized, is that to properly how we engage with our distributors. And from our analyze the company’s results, one must understand perspective, in that context, the results are highly how the markets are evolving and the main trends satisfactory. that are emerging. We are undergoing a structural change, as we will see shortly, in the world of alcoholic Globally, we stood out in 2024, and I would dare beverages, mainly because of the pandemic and the to say that we will do so again in 2025, even if the various factors you are already informed about and second-quarter results were not exactly what we that we have discussed throughout our previous would have hoped for, to be honest and clear. But presentations. we are confident that we have everything in our favor to make 2025 another strong year, where Concha y

So, what are those realities, those market trends, Toro stands out at a global level within the alcoholic from our point of view? First, there is a premise that beverage industry. Of course, we always have to be

Concha y Toro grasped quite deeply

that already reading the market and acting accordingly. in September 2022, we saw that the sales results of the wine and alcohol industry were undergoing a Now, I would like to very clearly present some hard structural shift, very much triggered by the pandemic. data about the industry, so we do not lose sight of the context in which we are operating and what will follow

To provide context

2020 was a good year; 2021 was from this structural transformation of our industry. an exceptionally good year, as it was the peak after the pandemic and across many industries, consumption Sales volume is a very solid indicator, especially was absolutely off the charts. That created a climate when we consider the main markets, which we can of great expectation for what the next years would see on the screen. We see that the main markets at bring. the industry level, with the sole exception of Brazil, where there is a very high concentration of sales and

Then came 2022, which started with a solid first there is growth in Brazil (keeping in mind that per semester, but from the second half, especially in capita consumption in Brazil is of 2.3 liters), so the the third quarter, we saw a pronounced drop that penetration of the wine industry in Brazil has been raised concern. And, with the various analyses we steadily increasing lately, and there have been some carried out, thanks to the company's global reach, we very significant increases there. concluded that something was happening that went beyond a cyclical factor. What is unfortunate, so to speak, but is a market reality in which we are working, is the decline shown

The outcome of that analysis and everything that has in the first column of 2024 compared to 2023, and happened since have confirmed for us that we are in the second column for the first six months, or five facing a new scenario. And it must be said clearly: it months depending on data availability. But we can is a new scenario of lower wine consumption. This see that the drop is not diminishing; in some markets will bring a consolidation in the number of companies it is accentuating even more. and brands in the industry. The wine industry is going to undergo a structural transformation, just As background, we have the information published as it did in the past, though in a different direction, by the OIV, showing that world wine consumption as was the case with premiumization, where many has fallen back to the levels of 1961, which shows us new companies and brands were created to take the deep crisis, a structural crisis, as we have been advantage of that historic moment. Now, the moment saying, that we are facing. noitatneserp stluser

52H1

Then there is a growth in the consumption of white Something I want to emphasize here, and it is and rosé wines. We can see, in the red color in the important to keep in mind, and has been part of the background, how that color decreases across all company’s policy since 2018, and thanks to this, the markets like England, the United States, Ireland, company can look towards the future with quite an

Sweden, Chile, Brazil and Mexico. In every direction, optimistic scope, even though there are quarters that there is a decrease in red wine consumption and a are less good than one would like. I am talking about growth in the consumption of white and rosé wines. premiumization. This is an absolutely key factor for our company, and so far, all the results have been

This percentages depends, obviously, on the situation broadly satisfactory. each country had between 2019 and 2024. In other words, there is a growing consumption of white Throughout the overall downward environment I and rosé varieties at the expense of reds. One may showed you earlier, we can see how we have not attribute this in large part to climate factors and also declined in premium and superior wines. And this is to a search for fresher flavors in wine, which are more worth highlighting. We are talking about volumes of typical of white and rosé wines. 5.9% for 1Q25 and 2.4% for 2Q25, which gives us a

3.9% in 1H25. I insist that the second quarter was not

Another aspect is the low-alcohol and non-alcoholic what we had expected. categories, which are growing across all alcoholic beverage categories, very much driven globally in the In the lower-tier and varietals we expected growth beer sector. We can see that there is a preference in this second quarter, which did not happen, but we for products with a lower alcohol content, such as were practically flat, with a drop that, as mentioned the so-called “ready-to-drink”, for example, or the at the time, was very sharp during the first quarter, hard seltzer in the case of the United States. There is giving us a decline of 3.7% in 1H25. In beer and spirits, already a significant market share in the U.S., of about we have a slight gain of 3.5%. In general terms, let us

6%, and 1.6% in the British market. It is still a small say, we are at a 0.7% decline compared to the same volume, but we believe it will definitely keep growing, semester last year. and the company, and this is something I can reassure you of, is already prepared, and we are launching One calculation I made—though I must stress this is products with lower alcohol content, as we will show. an internal estimate with its own limitations—is that if we take a weighted view of the whole industry's

And finally, also among the major trends, in a key performance in the first semester compared to market, although not only in that market but in many, the first semester of 2024, the industry as a whole especially in Europe, there have been tax increases. declined by about 4.7%. This is our internal calculation

In this case, there is a new recycling tax that came at Concha y Toro. And against that scenario, Concha into effect from 2025 onward, as well as alcohol taxes y Toro was practically flat. So I believe that, in this scaled according to alcohol level. We can see in the sense, things must be seen in context. lower bullet points, how the volume has remained practically stable due to this price war that has And then, in terms of exports, Concha y Toro's market developed, but prices have dropped due to a situation share in May rose to around 35.8% to approximately of excess of demand, or rather a lack of supply. This 37.5% in volume. is a reality we face, and I think having our own office there and being first in terms of wine distribution in Here, we wanted to provide a broader timeframe the UK market gives us a significant competitive by including the years 2022, 2023, 2024 and advantage in a difficult environment. 2025. I mention 2022 as well because 2021 was an exceptionally unusual year, as I said, due to the

If we focus now more directly on Concha y Toro, what pandemic. And, as a company, we have set ourselves are the hard data points we can share? First, in terms the goal of surpassing 2022 in volume during this year of volume, compared to what we talked about earlier, 2025, and that gives some indication of where we are in the first quarter we had a consolidated volume drop headed. This is the big bet for Concha y Toro. That of 2.7%, and an increase in the second quarter of 1.1%. is what we are working toward, and our goal is that by year-end we will have surpassed 2022’s volume by a significant margin, within the scenario we are discussing, to then aim in 2026 to get closer to 2021.

As we can see for premium and superior wines, in this first quarter we surpassed 2022; in the second quarter we did not. But in cumulative terms, we are doing better than last year and moving toward surpassing that very solid post-pandemic year.

The situation is stronger during the first quarter and in the second quarter we came quite close. So, during the first half of this year, we are 3.9% above the same period last year, and 2.4% higher than the second quarter of 2024. But the objective we have here is to surpass that benchmark.

Now, let us move to the varietal and lower-end segments. And this is where we have been hit the hardest, for all the reasons we have discussed.

We are far from 2022 in both the first and second quarters. Still, we have clear goals and are committed to reaching 2022 levels during this year, 2025.

In terms of value, the situation improves considerably, of course, due to all the factors that you are already familiar with. We have the premium and superior categories, with 6.6% growth, very steady both in the first and second quarters. I want to highlight this especially because we have experienced fluctuations in exchange rates. The 2024 exchange rate was also favorable. And here we are seeing some very promising figures, showing consistent growth, in

what I would call high single digits

something like

6.5%, 6.6%.

In the lower-end segment, we also grew in value terms during the second quarter. And in beer and spirits, we did quite well, with 16.2% in 2Q25.

In the footnote, it was highlighted that, when analyzing the first semester, sales in value terms were the best in seven years, strongly confirming what we are emphasizing in this presentation.

In terms of quarterly evolution for only wine, we had an outstanding performance, better than all previous years. The target I mentioned earlier, focused on

2022, was related to volume, not value. In terms of value, we have already surpassed it: up 4.1% versus

2Q24, and up 2.6% versus 1H24. noitatneserp stluser

52H1

In the premium and superior categories, we are well above all previous years. This makes us very happy, because it is the basis on which we have structured our commercial area, our company, and our short, medium, and long-term objectives. So, these figures are truly encouraging.

In premium and superior categories, this evolution is clearly visible. In the varietal category, we also managed to surpass all previous years in this quarter, but in the first quarter we declined compared to 2024.

As for beer and spirits, we have increased 3.5% in volume terms, and 9.7% in value.

Before moving on to the margins, I would like to clearly summarize what we have stated, which can be distilled into three key points.

First, a truly complete satisfaction with the performance of our premium and superior brands, which in every respect have shown exceptional performance. We will go into more detail about the three main brands that the company has in that category soon. So, the first aspect is that.

The second aspect is that we are in debt with respect to the varietal and lower-end categories. And we believe that in the second half of the year, this situation should be reversed and begin to improve and grow in volume within those segments.

And in a general context, in terms of volume, our goal is to surpass the year 2022, which was very significant for us.

In terms of gross and operating margins, there is a difference here explained by revenues and expenses from other functions that Osvaldo will explain in more detail, but we see that in the first semester margins were relatively similar, while in the second we dropped, mainly due to inflation, aggressive competition in the varietal and low-end categories, lower volumes, and those revenues and expenses from other functions. In general terms, we are optimistic that we will surpass

2024 in all margins by the end of the year. That is the perspective with which we are currently approaching the year 2025.

I mentioned that the first issue was the decline, and I think that with all the information we have gathered, we can be relatively confident that Concha y Toro’s performance has clearly outperformed the industry and the numbers speak for themselves. Wine Spectator, has grown 177%.

The second aspect I wanted to highlight in this In terms of markets, in value terms, the only market presentation as a trend is the increase in consumption with strong decrease in the first semester was Japan, of whites and rosés at the expense of reds, and how and that is due to the exchange rate and the difficulties

Concha y Toro is responding to that. We have a the industry as a whole is having in Japan to have plantation policy, which you are familiar with, that is profitability. We all work through distributors there, aggressive and well-aligned with market trends, and and there is resistance, this is across all distributors, this is a clear reflection of that. These are additional not just ours, and it shows in the performance of other hectares we have planted in white varieties in 2023 companies as well, at a lower-tier category. We are and 2024, with further projections for 2025, and we countering that trend of margin difficulties by focusing already have all the material ready for planting in 2026. on the Casillero del Diablo brand. That allowed us to

And there is a growing trend in plantations to meet that grow, with the whole Casillero del Diablo universe, demand. This is concentrated mainly in five valleys by 10% in a market where overall decline has been a

where we operate

Limarí, Maipo, Colchagua, Curicó, determining factor. and Maule, where the company will add 637 hectares, figures that are quite significant, for our total white wine In terms of brands, I want to emphasize three main volume. We are meeting that growing demand in the ones. First, we have the Casillero del Diablo universe. right places, with the right varieties and rootstocks, and When we talk about that, we mean everything Concha with those 2.0 plants that I spoke to you about before. y Toro has developed around Casillero, and we are seeing a growth of 4.5%. This encompasses the

I also mentioned our lower-alcohol products. We standard Casillero del Diablo label, which everyone have been launching them in their different versions, knows with the white label, then we launched Diablo,

Casillero Belight, etc., and here we can see how, just and later Carnaval; and with all these brands, the looking at Chile (not the global level), and without concept of Casillero del Diablo universe, we are including Argentina or the United States (which 4.5% up. Then there is Trivento, another flagship follow different market trends), these lower-alcohol brand in our portfolio, which has remained mostly products as a whole made up around 13.6% of the flat this semester, but it has not dropped despite the portfolio in the first semester of the year 2024, and overall environment. And, something that makes us now they are already at 14.4%. This shows how we quite happy is that Bonterra, thanks to the different are aligned with market trends and delivering to launches and the adjustments we are making, is consumers the products they are actually asking for. already perceiving a growth. So, in our three most important brands, the ones driving the growth in our

Other aspects I would like to highlight. First of all, the premium and superior categories, we are performing premiumization, which I cannot fail to mention. We well. Of course, we would like to see growth with reached a very encouraging figure in the first half of Trivento, and we expect to deliver that during the

the year

where we had a raise of 210 base points, second half of this year. going from 54.5% to 55.6% only looking at wine. Let us not forget that if we look back to when we began Don Melchor, of course, is a whole other story, with this in 2018, we were around 38%. This reflects because amid the crisis affecting the high-end wine the change the company has undergone in this sector, where even the top French châteaux and the product category and the success of the strategy's best American and Italian producers are struggling, implementation. It is clear how, despite all the Don Melchor, thanks to that award, has been crises, we have been increasing our share in terms of uniquely positioned in the market. So much so that, premiumization. considering the total volume that Concha y Toro has globally with all its brands, this brand ranked 12th in

We may see it in the figures for our most important value for the company. And that alone, in my opinion, brands. Diablo grew 15.9% in value. Bonterra, a brand says it all: the relevance this brand has gained and from the U.S., a market where we did not perform the promising future we see for the ultra-premium very well overall but still had its main label grow by category, strongly driven by Don Melchor.

7.3%; and Don Melchor, thanks to that exceptional score it got last year, being ranked number one by Looking ahead to the second half and the end noitatneserp stluser

52H1 of the year, very briefly, we expect three major going forward, but must be recognized in the current

developments

first, a significant volume growth financial statements, despite not generating cash across all main brands in the premium and superior flow with their current write-offs. Therefore, while categories. As I mentioned earlier, we are working the result does show a decline, as Eduardo noted, on that and we believe that we will soon be sharing that drop is substantially smaller when we isolate and very good news about how this category continues to clarify these write-offs and adjustments the company consolidate. It is truly where the company’s focus lies, made both in the second quarter and year-to-date. although without neglecting or abandoning the growth of the varietal and low-end categories, but, for our In that context, when looking at the company’s three origins, our main objective is to consolidate and operating result, we have also framed it here with elevate our brands, which will drive our major growth different colored lines. As we can see, the orange line in 2025, 2026 and the following years. We expect to corresponds to this year, and the drop compared to grow, as I mentioned earlier, compared to 2022. We the blue line, representing last year, is clearly a specific hope not to disappoint and that the varietal and low- one-off factor within the broader perspective of our end categories will also experience significant growth outlook for the year. If you look closely, the second in 2025 compared to previous years, so that we can quarter of 2024 was quite exceptional, followed by a move into a stage of sustained growth in both major decline in the third quarter. In contrast, this year we categories, premium and superior, and varietal and are seeing a diagonal upward trend between the first low-tier. and second quarters, which leads us to expect a third quarter that breaks above both the trend of 2024 and

In conclusion, something that makes us proud is the reference line of 2022, which Eduardo mentioned, this new business unit in Pirque, where we have in terms of company volumes. This is reflected in the created the Wine Center for the consumer looking percentages that we have discussed above. for experiences today. We truly believe that what we have built there is absolutely exceptional. It will be With respect to margins, we are in a similar situation.

Daniela’s job to coordinate with you all so that you We have had a margin of 11.5%, which is clearly not can visit the center and see for yourself the significant the target percentage the company is aiming for, impact that we expect it to have on the global wine especially when compared to last year’s 14%, where industry, thanks to what we have done there and the the margin dropped to 11% in the third quarter, strong results that we anticipate from this business whereas this year we expect to see a rising line in unit, which shows great promise for the years ahead. operational margins. We have listed the variations here, but the key point is our future outlook, which we

I will now hand it over to Osvaldo. see as trending upward through the rest of the year.

Speaker

Osvaldo Solar When analyzing EBITDA, the context is similar.

EBITDA is at CLP$36,707 million, which is below the

→ Good morning, everyone. This time, we are going CLP$41,769 million mark from last year, but already to start the presentation a bit differently, particularly above what was reported in the third quarter of last to address the points Eduardo mentioned regarding year. We believe that the outlook, as mentioned, is other expenses and income by function, which have moving in that direction. had a particularly significant impact both in the second quarter and in the first half of the year. When looking at the margins, as we have discussed in some meetings, the margins the company is

So, when one looks at this figure, the operating targeting in terms of EBITDA, this 15% is clearly not result, which you see on screen, it is followed by this the margins we are expecting from the perspective detail, which we believe is important to consider, that the company has planned, and that we should as it explains roughly a third of the drop in results be visualizing over the next quarters of the year. in the second quarter and 75% of the year-to-date This is why we have also included here what was decline. These are all one-time write-offs, related experienced, not only in 2024, but also in 2023 and to wine and associated with the sale of a vineyard 2022, in order to more strongly conceptualize the we mentioned in the first quarter, as well as vineyard company’s outlook, considering the efficiency cost- removals in Bonterra, items that will generate profits cutting adjustments we have carried out, combined noitatneserp stluser

52H1 noitatneserp stluser

52H1 with the strength of sales, which are ultimately what up too much this quarter, as it is not as relevant until drive these results. So, in that sense, looking here the third quarter. Recall that in the third quarter we at the result of the second quarter, we are optimistic see the annual result of our associated company regarding what we should be visualizing both in the Almaviva, which has its results pretty much third and fourth quarters of 2025. concentrated in September, although this year it has performed better due to some additional sales during

A key aspect that we always track and that we this period, these numbers are not especially relevant have wanted to show here once again is currency compared to the overall results of the company. It diversification, as it has had opposite effects over the is just CLP$250 million extra, which shows that our first two quarters. Let us remember that the company associates companies are also performing, but again, has this currency diversification, which we see on what we will see in the third quarter is what counts. the left side, where we notice that some currencies which would not even show up a few years ago have So we are going to focus more on financial costs and been gaining strength. A relevant case here is the exchange rate differences, mostly on the financial

Brazilian real, which had a depreciated movement side. In this aspect, it is worth mentioning the

(this is, appreciative for us) in its currency, which comment we put down there: the 14% drop in financial explains in part why the company’s earnings in the expenses is mostly due to interest rates at 72%, and second quarter show a favorable index of 1.6%, when 28% from reduced capital, which is interesting when looking at the average for the period. The real ended thinking about the future. up becoming our fourth largest currency, surpassing the euro with a 10% share in our basket, and with a We have also shown, just as with the operational lot of anticipation regarding the Brazilian market going result, how these numbers look. What matters here, forward. since we are talking about costs, is for it to be as low as possible, unlike profits, which work the other way.

If we look at the pound sterling, with 28% total And we can clearly see here how this cost is now below weighting, also had a 7.2% increase, which helped what it was in 2024, even lower than 2023, but higher pull the basket slightly upwards. We also see the euro than 2022, which had a level of financial expense that at 6.8%, the Mexican peso with 11% drop, while the we cannot realistically reach again, as the interest dollar is at 1.3%. So, we can see we have a slightly rates that existed in the context of 2021 and 2022 increased basket what we would have had using only are simply not attainable anymore, except in a very the dollar as a reference. specific global scenario. We shown the variations to highlight the impact this has had in the quarter and

The impact, which we can see in the footnote, for this year-to-date, of 18.3% and 19.3% respectively. quarter was CLP$1,153 million in our favor, a very small number relative to operational results and net And let us see here, when we dig deeper into this income, and for the year-to-date, we have a negative result, the continued importance of something we effect due to exchange rates of CLP$2,112 million, have talked about at length on many occasions, which mostly because of depreciation in the Brazilian real is a policy the company adopted before the problems and Mexican peso relative to the Chilean peso. that broke out here in Chile in October of 2019, which has allowed us to generate a steadily result,

And when we go into what accounting standards which have been decreasing since inflation has been define as non-operational, most of the weight comes falling. But when we compare period to period, we from financial costs, a portion comes from exchange still see inflation levels higher than 3%, which is what rate differences, and some from our associated the Central Bank was aiming for in the long term. In companies. We see that we had better performance, this second quarter, annualized inflation came out at with an improvement of CLP$800 million compared 4.48% and, let us remember, we have our inflation to the same period of last year, and we will get into target set at 2.82% annually. So this generated a profit that in more detail because we think it is interesting of CLP$513 million this quarter, and of CLP$1,600 what is happening there. million for the year so far, if we consider the inflation for the year accumulated to be at 4.5% when analyzed.

Regarding the associated companies, which are shown at the end of the table, we will not follow them Here we mention again that the inflation is fixed, noitatneserp stluser

52H1 and therefore, we also have an interesting forward- 3% in terms of net income semester-over-semester, looking perspective. There will probably be a smaller correcting for these one-off expenses, aimed at difference as inflation begins to converge toward improving productivity or lowering costs in the future. target 2%, which is essentially the policy that the So they are forward-looking investments that are

Central Bank has published and is aiming to achieve, being charged today, affecting results now, but if we even when it has been pushed forward a bit in time. do not consider them, we would have 3% growth.

As a matter of fact, the expectative of inflation for July is now between 0.6% and 0.7% percent for the month, In terms of the key indicators we monitor, one very which is clearly quite high inflation if we analyze it in important metric, as we have said many times, is an annual context. return on invested capital. That is the main focus of the

company

ensuring returns on every peso invested.

In terms of financial expenses and the difficulty of Right now, we are at 7.6%. Let us remember that this reaching levels such as in 2021 and 2022, we can indicator is measured on a rolling 12-month basis, so clearly see this in this chart. For example, we included it moves throughout the year, and our expectations the dollar rate from that time, and the average was for this year are to exceed that 8% from 2024. around 1.5%, and we must remember that the U.S. monetary policy rate today is at levels of 4.25%. So it The company’s financial debt has dropped to is impossible to even consider those previous levels CLP$394,072 million. The key here is to look at this anymore. But we do have a clearly downward outlook in context with the company’s financial covenants, on rates, compared not only to the peaks of 2023, which we have defined as financial strength. The first but also to 2024. And there is also a component that covenant is net financial debt over equity, which is at clearly diminishes as those lower rates are factored in. a level of 1.2x, and the company is currently at 0.57x,

In fact, we included rates, like the SOFR rate in dollars, compared to 0.63x in June last year. which is closing the semester at around 3.87%, while for Concha y Toro, this rate is around 4.2% or 4.3%. As for the coverage of financial expenses, we are also

The Chilean peso rate is at 5.1%, which is also clearly clearly at a higher level, our covenant is 2.5x, and we lower than what we experienced in both 2023 and are currently at 6.7x interest coverage.

2024, not to mention the end of 2022 during the crisis. All of this considered, the debt reduction is Lastly, regarding a metric the company tracks, which what is reflected here. does not have to do with a covenant but reflects our internal goal of maintaining leverage around 2.5x on

What is interesting, and why we included this average over time (with some variation depending on chart, is that it shows the outlook for net financial investment decisions), we are currently at 2.6x. We expense, which clearly places us in a solid position were at 3.0x in June 2024, and the goal is to be below when compared to 2024 and 2023. We see a trend, 2.5x by year-end, again depending on investment though there is still growth, that always peaks in the decisions. third quarter due to the company’s debt cycle being concentrated in June, which then affects the third This is the overview, where we reviewed operational quarter. But the trend is clearly below what we saw in and non-operational results, closing with a view of the

2024 and 2023. We have included the year-to-date company’s continued financial soundness. variation of 20.7%, and 14.5% quarterly, which are very interesting numbers and have contributed to the Thank you. company’s overall results.

(End of the presentation)

Lastly, in terms of net income, it is important to explain what we mentioned about operating results Speaker: Daniela Lama being affected by other expenses by function, which are a result of the company making certain write- → Okay. That brings us to the end of this earnings offs. And if we correct this 4.9% fall, and look at the presentation. Thank you for joining us and have a accumulated result, that number actually increases in good afternoon.