Q4 2022 Adecoagro SA Earnings Call
Speaker 1: Now some words regarding the outlook for 2023.
Speaker 1: Here I want to separate two very different situations.
Speaker 1: One is Argentina and Uruguay and another is Brazil.
Speaker 1: As you may know, the dry weather experience in Argentina and Uruguay during 2022 has extended its effects into 2023.
Speaker 1: production at national level is experiencing considerable losses.
Speaker 1: In our case, being diversified in terms of crop produce and geography.
Speaker 1: gives us the flexibility to make some adjustment to our planting plants towards more resilient crops for this situation.
Speaker 1: However, the weather scenario is still adverse.
Speaker 1: Because of this, we expect yields in our crop business to be lower compared to the past harvest season.
Speaker 1: But let me be clear on this, our crop business is responsible for less than 10% of the company's EVDA and is only one out of three segments that makes up our farming operations.
Speaker 1: In the case of our rice business, we expect better results compared to last year.
Speaker 1: Higher prices and better mix of higher value added products will offset any impact on yield that might be observed in some of our farms.
Speaker 1: In the case of 80, although the cost of cow feed will increase, we expect results in line with last year, because of the more stable nature of this business.
Speaker 2: Now, more than ever,
Speaker 1: We have to continue focus on maintaining an efficient operation in all our businesses and periodically reassessing our cost structure and expenditures.
Speaker 1: Brazil is in a very different situation.
Speaker 1: We have a very positive outlook for our sugar- eighteen generation.
Speaker 1: Over the years we have expanded our sugarcane plantation area and it is currently in an excellent condition. Productivity indicators are solid, sugar prices are trading above 20 cents per pound and we have increased around 5% in 2010.
Speaker 1: a very good operational and commercial flexibility. We operate based on a continuous or non-stop harvest model.
Speaker 1: So we are one of the few crashing.
Speaker 1: I'm the only player producing sugar in Brazil today.
Speaker 1: Whether going normal, we expect our crashing volumes in 2023 to be around 15% higher than in 2022, and this in turn will result in a reduction in our unitary cash cost.
Speaker 1: One brief comment on the ESC.
Speaker 1: We are very excited about the progress made in our biogas project, which transforms vignettes into biogas to be used in the production of energy and in the conversion into biomethane to replace diesel consumption.
Speaker 1: We have already adapted 13 vehicles and expect to test their performance in the upcoming days.
Speaker 1: This is one of the many examples of the initiatives we are working on that results in an improved sustainability profile at the same time that it reduces our costs.
Speaker 1: Together with our ESC committee that oversees all of our developments, we continue enhancing our sustainable download.
Speaker 1: To conclude, we have a year full of challenges ahead of us. However, I feel confident that if we remain focused on reducing costs and follow closely our day-to-day operations, we will continue to generate good returns and value for our shareholders.
Speaker 1: Now, I will let Emilio walk you through the numbers of the quarter.
Speaker 3: Thank you, Mariano. Good morning, everyone. Let's start on page five with a brief note on the rains in Mataroso do Sul. As you can see on the chart during 2022, rains in our cluster presented a 9% increase compared to last year.
Speaker 3: Good precipitation levels throughout the year favor the development of our sugarcane plantation and improve its productivity outlook as we will see in the next slides.
Speaker 3: Let's move ahead to slide six where we would like to describe our sugarcane crushing.
Speaker 3: In the last quarter of 2022, crossing volumes amounted to 3.2 million tons, driven by good cane availability and solid productivity indicators.
Speaker 3: Compared to last quarter of 2021, we increased our crashing by 1.9 million tons. This increase was mostly explained by 2021's lower effective milling days and weak cocaine productivity as a consequence of the frost that impacted Brazil's productive areas due to varyingNE
Speaker 3: sugarcane recover from the frost effects.
Speaker 3: On an annual basis, crashing volume reached 10.5 million tonnes, making a decrease of only 0.5 million tonnes compared to 2021, despite the late start of our crashing activities.
Speaker 3: In our next page, number 7, we show our agriculture productivity indicators.
Speaker 3: Sugarcane yields during the last quarter of 2022 were 24% higher compared to the same period of last year, reaching 81 tons per hectare, and TRS content presented a 12% improvement, amounting for 134 kg per ton.
Speaker 3: Looking at the full year picture, sugarcane yields gradually improve throughout the year, going from 44 tons per hectare in the first quarter until reaching solid levels in the fourth quarter as we expected, whereas TRS content reached 131kg per tonne.
Speaker 3: making a 2% increase year over year.
Speaker 3: increase year over year. Let's move ahead to slide 8.
Speaker 3: where we have our production mix. As always, our production strategy constantly switches to always produce a product that offers the highest marginal contribution provided the high degree of flexibility of our meals.
Speaker 3: During the quarter, on average, anhydrous ethanol in Mataroso-Dosul traded at 19.6 cents per pound, 2% premium to sugar, whereas hydrous ethanol traded at 17.9 cents per pound, 7% discount to sugar.
Speaker 3: We diverted as much as 56% of our TRS to ethanol production.
Speaker 3: At the same time, we took advantage of our capacity to dehydrate ethanol already stored in our tanks. In total, we produced 93% of anhydrous ethanol that we sold domestically and exported to Europe at very attractive prices.
Speaker 3: Production mix for the full year favored ethanol in 65% compared to 62% in 2021. And hydrozethanol during the year amounted to 66% of total ethanol production compared to 45% during last year.
Speaker 3: Let's please turn to slide 9 where we would like to describe our selling volumes and average selling prices by product.
Speaker 3: As you can see on the left chart, ethanol reported a 17 increase in selling volumes to 552,000 cubic meters, mostly driven by anhydrous ethanol sales, which increased by 49Tex.
Speaker 3: Moreover, average selling prices went up by 14% year over year to 22 cents per pound.
Speaker 3: This was thanks to our commercial strategy of cleaning out our tanks at the peak of prices, enabling us to sell 23% of our volume at prices over 26 cents per pound equivalent. Also, having the necessary certifications to export to euro, and also having the necessary
Speaker 3: and the industrial capacity to meet product specifications, granted us the flexibility to sell into the domestic markets and also export markets. We will go into more detail in the following slide.
Speaker 3: In the case of sugar, average selling prices were up 10% compared to 2021, even though volumes sold were down 20% due to lower production. It is worth highlighting that sugar continues to trade at stable levels throughout the quarter driven by a strong global demand.
Speaker 3: Energy selling volumes were down 24% versus 2021 due to our commercial decision to use our bagasse to dehydrate ethanol rather than to produce energy and sell it at low spot prices.
Speaker 3: Regarding carbon credits in 2022, we saw 551,000 cevallos, 9% higher than previous year, at an average price of $18 per cevallo, having captured peaks as high as $40 per cevallo.
Speaker 3: On page 10, we would like to make special remarks of our Anhydraverse ethanol sales strategy.
Speaker 3: During the quarter, the European expo market remained an attractive outlet for anhydrous ethanol production.
Speaker 3: In this line, our commercial strategy during the quarter focused on the commercialization of sugar and the export of anhydrous ethanol, which amounted to 41,000 cubic meters at an average price of $751 per cubic meter or 20.4 cents per pound equivalent.
Speaker 3: At the same time, we built inventory of hydrocessant ethanol either to be sold at higher prices at a later stage or be converted into anhydrous ethanol.
Speaker 3: On a full year basis, anhydro-sethanol sales were 66% higher compared to 2021, on higher volumes sold abroad at more attractive selling prices than in the domestic market. Exports amounted to 123,000 cubic meters at an average price of $1.5 billion.
Speaker 3: 762 dollars per cubic meter or 20.8 cents per pound equivalent.
Speaker 3: Please move to page 11 where we would like to walk you through our overall sales.
Speaker 3: Net sales amounted to $198 million during the fourth quarter of 2022, making a 26% increase compared to the same period of last year.
Speaker 3: This increase was driven by higher selling volume and price of sugar, coupled with higher selling volume of anhydrous ethanol.
Speaker 3: On a full year basis, net sales amounted to $593 million, 13% higher year over year. As explained, this was driven by 37 higher ethanol sales, which fully offset the 12% reduction in sugar sales and 31% in energy.
Speaker 3: Ceballos sales, in turn, reached $10 million in 2022 compared to the $4 million reported in 2021.
Speaker 3: On the following slide number 12, we explain our cash cost.
Speaker 3: Total cash cost reflects how much it cost us to produce one pound of sugar and ethanol in sugar equivalent.
Speaker 3: Maintaining Scapix is included in the calculation since it is a recurring investment necessary to maintain the productivity of the sugarcane plantation. As we are calculating sugar and ethanol costs, energy is considered a by-product and thus deducted from total costs.
Speaker 3: As for the tax recovery line, it includes ICMS tax rebate incentive that the state of Maduro-S?s?l granted us until 2032.
Speaker 3: Total cash costs on a per unit basis in 2022 increased by 25% compared to the previous year, reaching 13.1 cents per pound of sugar equivalent.
Speaker 3: This is explained by a 21% year-over-year increase in total production costs due to lower dilution of fixed costs on lower crashing volume, coupled with higher costs of inputs, diesel and salaries among others.
Speaker 3: Moreover, there was first a 12% year-over-year increase in maintenance capex driven by higher renewal area of our sugarcane plantation, in addition to an increase in cost of inputs for such planting renewal.
Speaker 3: Second, a 24% year-over-year reduction in energy co-generation as we use our bagasse to dehydrate our hydro stocks. And third, a 14% year-over-year reduction in tax recovery due to lower ethanol sales into the domestic market.
Speaker 3: All our power efforts are devoted to further enhanced efficiencies to continue reducing total cash costs. As we continue ramping up our operations in our cluster, cash costs shall go down as more fixed costs will be diluted.
Speaker 3: Please go to page 13 where we present the financial performance of the Sugar, Ethanol In-
Speaker 3: I just see the D.A. during the fourth quarter was one hundred and one million dollars.
Speaker 3: 56% higher year over year. This was explained by the increase in sales and by a $13 million year over year increase in the mark to market of our harvested cane on higher crushing volume. Results were partially offset by higher costs.
Speaker 3: On a non-all basis, adjusted EBITDA amounted to $374 million, 12% higher year over year. This was explained by higher net sales and year over year gains in the mark to market of our commodity hedge position.
Speaker 3: and of our unharvested cane as a productivity outlook has improved. Results were partially offset by increasing cost as we described before.
Speaker 3: Finally, to conclude with sugar, ethanol and energy business, please turn to slide 14 where we would like to briefly talk about the current outlook for 2023. We have entered into 2023 with good sugarcane availability and solid productivity indicators. As expected, this has enabled us to resume our continuous harvest model and to ensure our risks.
Speaker 3: And as highlighted by Mariano a few minutes ago, we are one of the very few sugar, ethanol, and energy producers in Brazil currently conducting harvesting and crushing activities. And for sure, the only one producing sugar.
Speaker 3: Being able to grasp year-round, even during the traditional inter-harvest period, is one of our main competitive advantages.
Speaker 3: While the sugar and ethanol industry in Brazil must rely on inventories carried over from the past year, we are able to supply new production into the market and maximize the product that offers the highest marginal contribution, which currently is sugar.
Speaker 3: Whether going normal, we expect our crushing volume in 2023 to be around 15% higher than in 2022 on account of better productivity outlook and greater sugarcane availability.
Speaker 3: This, in turn, will result in a reduction in unitary cash costs due to better dilution of fixed costs.
Speaker 3: From a commercial point of view, sugar prices are trading at solid levels and there have been positive developments for ethanol prices.
Speaker 3: As of being zeroed since mid-2022, Brazilian government recently announced a gradual return of further attacks is co-finishing on gasoline and ethanol as of March 1, 2023. This will aid in restoring ethanol competitiveness at the pump.
Speaker 3: Now we would like to move on to the farming business. Please go to slide 16.
Speaker 3: We ended up our 2021-22 harvest season with over 1.1 million tons of agricultural produce.
Speaker 3: For the new campaign that we are currently engaging, we have completed planting activities in 267,000 hectares, marking a 6% decrease in planted area compared to the previous campaign. In this regard, we cannot help to mention that La Niña weather event has extended its effects during the beginning of 2023.
Speaker 3: and continues affecting production as of today.
Speaker 3: Almost all the productive regions of Argentina and Uruguay are experiencing losses in their summer crop productions.
Speaker 3: Although we are diversified in terms of crops and geographical regions, due to the lack of soil moisture because of the drought, we had to adjust our planting calendar and reduce area. We are constantly reviewing the evolution of each crop and expect yields to be lower than the previous year.
Speaker 3: On the other hand, our rice and dairy businesses, which were less affected by the drought, have a much better output for the current campaign.
Speaker 3: On page 17, we would like to present the financial performance of our farming and land transformation businesses.
Speaker 3: Adjusted EVDA amounted to $83 million for the full year, making a 33% year-over-year reduction.
Speaker 3: The improved performance in our dairy business, driven by volume and better mix of higher value added products, was fully offset by a lower contribution from our crops and rice businesses into the overall results.
Speaker 3: Results were mainly impacted by higher costs, a mixed performance of yields and lower rice prices. In our crop business, adjusted EVDA for the full year amounted to $27 million, marking a 48% year-over-year decrease. Results were mainly impacted by higher costs in dollar terms.
Speaker 3: driven by global inflation and uneven performance in yields, loss in the market to market over forward contracts and higher selling expenses due to higher freight costs.
Speaker 3: Adjusted EVDA in our rice business was $21 million, presenting a 49% decrease compared to 2021. As explained in prior releases, results were mainly impacted by lower yields caused by the impact of La Niña in some of our rice farms and lower rice prices.
Speaker 3: EBITDA generation was also negatively impacted by higher costs in dollar terms.
Speaker 3: Moving on to the dairy business, adjusted EVDA marked a year-over-year increase of 37% to $31 million for the full year.
Speaker 3: Higher results were explained by an increase in both volume and average prices, as we increased the mix of higher value-added products, coupled with our continuous focus on achieving efficiencies in our vertically integrated operations. Again, lower results were explained by an increase in both volume and average prices, as we increased the mix of higher value-added products, coupled with our continuous focus on achieving efficiencies in our vertically integrated operations.
Speaker 3: Results were partially offset by higher costs in dollar terms driven by the global inflationary environment. In the case of land transformation, although no farm sales were concluded, results reflect the mark-to-market of an account receivable corresponding to the latest sale of farms in Brazil, which tracks the evolution of solving prices.
Speaker 3: Let's now turn to page 19, which shows the evolution of Ade Quarra's consolidated operational and financial performance.
Speaker 3: In 2022, gross sales exceeded $1.3 billion, presenting a 23% year-over-year increase, as well as a new record high for the company. Adjusted,[... guy reaches—
Speaker 3: $433 million in line with 2021, despite higher global costs and a challenging weather scenario. At the same time, we marked the first year of our distribution policy announced back in November 2021. We distributed a total of $71.8 million.
Speaker 3: or 47% of the net cash from operations generated in 2021.
Speaker 3: This was executed via the repurchase of $36.8 million in shares, coupled with cash dividends in the amount of $35 million.
Speaker 3: In 2022, we generated $141 million of net cash for operations, which equals to a minimum distribution of $56.5 million during 2023.
Speaker 3: Pending approval of the annual general meeting, cash dividends will amount to $35 million to be paid in two installments of $17.5 million each, on or about May and November of 2023. The balance will be distributed via buybacks and or dividends.
Speaker 3: as the case may be. Year to date we have already repurchased $5.5 million in shares.
Speaker 3: To conclude, please turn to slide 20 to take a look at our net dead position.
Speaker 3: On a year-over-year basis, net debt was 10% higher compared to 2021.
Speaker 3: This was mainly explained by the financing of our working capital needs to secure our supply chain, along with higher costs of inputs, coupled with the financing of our cappés.
Speaker 3: These working capital requirements are being financed by short-term borrowings in our farming division at attractive rates. Thus, short-term debt was 168 million dollars higher compared to last year.
Speaker 3: Our liquidity ratio reached 1.7 times. This clearly shows the full capacity of the company to repay short-term debt with cash balance without raising external capital. We believe that our balance sheet is in a healthy position, not only based on the adequate overall debt levels, but also on the terms of our indebtedness.
Speaker 4: The floor is now open to questions.
Speaker 4: If you have a question, please write it down in the Q&A section or click on Raise Hand for audio questions.
Speaker 4: Please remember that your company's name should be visible for questions to be taken.
Speaker 4: We do ask that when you pose your question that you pick it up your headset and provide optimal sound quality.
Speaker 4: Please hold while we poll for questions.
Speaker 4: Our first question comes from Henrique Brustolini. Mr. Henrique, your microphone is now open.
Speaker 3: Hi, good morning everyone. Thanks for taking my questions. I have two. The first one on the sugar and ethanol business, I just wanted to hear an update on how you are seeing the commercialization strategy for the year right when we put together.
Speaker 3: business. And more importantly, based on the prices that you are seeing and eventual opportunities for the year, how should we think about the unitary, right, realized selling price relative to what it was in 2022. So that's the first one on the sugar and ethanol. And the second in terms of capital allocation, right?
Speaker 3: leverage ratio is now below the two times threshold. There is more visibility on the sugar and ethanol business in general. So I just wanted to hear a little bit in terms of how you are seeing the levels of capex for this year and what should be the main projects that might come under way right now. Those are the two. Thank you.
Speaker 1: Hi, Enrique. Thank you for your question. I'm going to take your second question and then I'm going to pass the ball to Renato to go in detail on the first question.
Speaker 1: On the second question regarding capital allocation, as we've been telling in all our previous calls and as we explained clearly in our presentation some minutes ago, we are maintaining our policy so it's clear that 40% at minimum is going to be distributed via dividend.
Speaker 1: I want to separate here the two main views that we have. Number one for Argentina and Uruguay, as we just explained we are going through some difficult situations so in this specific scenario we are delaying some capexies and making a lot of progress and detail and get it into the...
Speaker 1: savings, every saving possible all along the chain and we have a, we are doing a very interesting work there that we can go into more details. But this is a situation where for Argentina and Uruguay you should expect less capex and less
Speaker 1: maintain our capex in this specific part of the company. Then when we go to the sugar, ethanol energy business, that things are going very well, the climate has gone to a normal level and now Renato can go into more details. We have some very attractive projects.
Speaker 1: that continue to synergize what we are currently having. That makes us more sustainable, that makes us more efficient, and this is on top of continued planting in this area that we are getting some interesting results in our planting or additional planting of sua kite. So, overall, in the suan atau business you should expect a little bit more capex.
Speaker 1: than in the 2022 and less in the farming business. And then I will pass the ball to Renato to go into your first part of the equation on the commercialization strategy and also if you want to add anything on this Sihuaneseano CapEx specific.
Speaker 5: Hi Henrique. We are positive with the scenario of both sugar and ethanol. So in sugar our strategy is to take advantage of our continuous harvest model. We are currently harvesting in Matthew Gross's soup to produce as much sugar as possible. We are maximizing sugar.
Speaker 5: now in the first quarter. Just as an example, we have already crushed more than 800,000 tons and produced more than 40,000 tons of sugar. And we are producing and selling it against the March contract.
Speaker 5: We feel very good prices, an average between 2022 cents per pound. We can also increase our sugar mix compared to last year. Last year we finished the year with 35% sugar mix.
Speaker 5: we can achieve a mix close to 50% of taking advantage of the higher sugar price. And we are still open in terms of hedging. Our position now we have 40% of our production hedged.
Speaker 5: at an average price of 19.4 cents per pound. In the ethanol we are also optimistic about the scenario. We are maximizing anhydrous ethanol. If you consider our dehydratation...
Speaker 5: capacity, we can produce almost 100% of anhydrous. Anhydrous today in Matagozu-Su is being traded at a price equivalent to 20 cents per pound, very close to sugar. And we are also taking advantage of the export market.
Speaker 5: We have just finished a transaction this week, so the first transaction of the year exporting ethanol with a 10% premium over the internal anhydrous market and I think it's good to mention that to our potential to export anhydrous.
Speaker 5: increased compared to last year, increased by 50 percent. So we can export 40 percent of our total ethanol production, and we will do this according to the opportunities that you see along the year.
Speaker 6: That's very clear. Thanks very much.
Speaker 4: Our next question comes from Mr. Guilherme Paliades. Mr. Guilherme, your mic is now open.
Good morning, everyone. Thank you for taking my questions. Just a follow up, Renato, you already said that you are able to produce 100% of hydrozetanol. When you look at the results, you see that there is some eventual hydrozetanol in the company right now, right?
Can we expect that to be converted to a hydrozetanol or do you seek to continue to have some hydrozetanol sales as well given the tax benefits that we see on the market? One second question here is related to the clarification in terms of the outlook that you design for the next year with a 15% increase in terms of the
At this moment we are thinking in producing 100% anhydrous ethanol using our bagasse as the price of energy is low at this moment, so the spot price of energy is low. So the best use of our bagasse is to get the ethanol and transform it into anhydrous.
And that's what we plan to do right now. If you have those prices react in the future, we might change this view.
The second part of the question, please could you repeat? Sure, Renato. Basically just trying to understand the 15% higher question for next crop season, right? Can you go through in terms of the TRS content when you look in terms of total TRS production? Where should we be looking at for the next crop season?
Yes, I think the weather is very good at this moment. The weather is good, the rainfall is very good in terms of volume and also distribution of rain. So that's why we're expecting a recover of our sugarcane yields.
Of course last year was impacted by the frost, so the yield that we had last year was not normal. So I think this recovery is expected. In terms of TRS, it depends a lot on how the range is going to change.
they use and the TRS content.
Great, thank you Renato.
Our next question comes from Ms. Larissa Perez. Ms. Larissa, your mic is now open.
Larissa, are you there?
Larissa, are you there? We can't hear.
It looks like Ladisa has a technical problem. We'll keep with the next question from Suntash Sisadi. Your mic is now open.
Hi, good morning everyone. Thanks a lot for taking up my questions. So firstly, do you have any plans to accelerate your aging positions for 2023 and possibly even into 2024, given that the sugar prices or the other crop prices might come down from the current levels?
If you think that is not necessary, what would be the rational for that? So that's my first question. And my second question would be on the cost. You mentioned about the potential dilution of cost on higher crushing volumes. So can you talk about your expectation for other input costs as well? And for 2023, should we expect?
should answer another part of the question.
OK, so regarding the costs, as it was mentioned here, we are expecting increase in use and volume of sugar cane processes close to 15%. So that's why we are going to have everybody to be at reaches of 25%. So I'm didn't say I shouldn't be 1933, butAm I right? Representative H that is obviously gonna close at about 40%
fixed cost dilution, we have an important part of our cost is fixed, so when we have more volume and use there is a higher dilution which helps a lot our total cash cost.
In terms of fertilizer in diesel, we expect that the cost is going to be much lower than it was last year. The pressure of cost, the cost is gone. But on the other hand, there are some costs that increase, that offset parts of the diesel.
of the decrease in diesel and fertilizer, which is labor and freight costs. But if you take everything into the equation, we expect the cash costs decreasing approximately 10%.
And regarding the future heads, we are positive with the sugar outlook, even for 2024. It seems that there is a problem in several countries, Thailand, the European Union and especially India.
So India should not release additional export quota. So the market today depends a lot on Brazilian exports. So that's why we think that Brazil is not going to produce sufficient to offset that decline.
and not to mention some logistical constraints in the short term. So in 2023 we are taking advantage of the spikes of the market to hedge our position and in 2024 we are still open waiting for a better opportunity to start to hedge our position.
Thank you.
And Santosh, on the catching of all the Argentina and Uruguay production, it is an embedded market. There are many specifics of the commodities for the local market, so we don't want to be in a degree of rush.
So we have this last question from Larissa from Inta'u. Some of them have been answered, but Victoria is going to read one of the questions that is not fully answered yet.
In 2022, you crashed 10.5 million tons of sugarcane or 0.5 million tons less than the previous harvest year. In your release, you mentioned that the company remains confident about its ability to increase crushing volumes by 15% year over year. Can you give us some more color on how you plan to achieve this increase other than being benefited by better weather and greater...
of course has an important impact here, especially because of the comparison of last year that was very low. But there are a lot of technologies and processes that we are doing that we think is going to increase our use in the long run.
I think a few examples of that is a good nutrition. I think it's important to remember that we are replacing 48% of our mineral fertilizer needs with organic fertilizer. We are self-sufficient in potassium, so it helps a lot the use of the sugarcane.
We have also a very good plague and weed control. We have been using drones to control weeds, and also a lot of biological control to control the most important plagues in sugarcane. For example, the stock water.
We have adopting new variants of sugarcane. In Matthew Prost's tool we have a bio factory that we produce 26 million of seeds, which is very important to release new variants adapted to that particular region, which will eventually produce more sugarcane per hectare.
And finally we have been using a lot of two-row harvester machines. That's very important because we damaged less the row of the sugarcane, improving the longevity and the use of the wrapped sugarcane.
So those are a few examples of technology and procedures that we are using that we think that is going to help a lot our youth in the longer run.
examples of technology and procedures that we are using that we think that is going to help a lot our youth in the long run. Thank you Renato.
Once again, if you have a question, please write it down in the Q&A section or click on raise hand for all audio questions. Please hold while we poll for questions.
Since there are no more other questions, this concludes the question and answer section.
At this time, I would like to turn the floor back to Mr. Bosch for any closing remarks.
Thank you everyone for participating. I hope to continue seeing you in our next event. Thank you. This concludes today's presentation. You may disconnect at this time and have a great day.