Q3 2023 Grupo Casas Bahia SA Earnings Call - Q&A
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What does she what's not just autos alright, good afternoon, everyone. The soldier.
Speaker 1: All right, good afternoon everyone.
Youre welcome.
Speaker 2: to our session here for Q&A. Thank you all for your participation. I just want to remind you that we published our earnings and documentation on our website in CVM with all of the results about the third quarter and also a video showing all the slides of this presentation with details about each of these initiatives, our results, our cash flow, and our short and long-term visions of the company. Thank you.
Don't you obsession here for Q&A. Thank you all for your participation is from them and you have to meet.
Uh huh.
Earnings in documentation on our website and Julian well, but it was.
All of the results is how about the third quarter and also video showing on the slides.
Location with details about speech in Michigan, our results, our cash flow and our short and long term vision of the company.
Yeah well.
Best of all.
We would like to that didn't surprise me.
Speaker 1: quickly go over a recap with the main messages we tried to share during the presentation and also during all of our materials. Let's move on.
Quickly go over our recap what the main messages we tried to share during the presentation and also during all of our materials.
Now let's move on.
With the slides.
Speaker 1: So to the first slide, let's start off with some accountability here on our travel plan that we presented on the 10th of August . We had presented a plan that was very bold for one billion reais and many different initiatives. And now we're going to bring in some important advances.
So yes to the first flight will begin his start off with some accountability here on our I'm trying to plan that we presented on the 10th tobacco Smith preventative plant.
No that was very bold for 1 billion raised in many different initiatives.
Now we're going to bring in some unfortunate advances for sure with all of these different initiatives. So first all of the levers are in on time.
Speaker 3: So first, if all of the levers are in on time, or even being done a little before what was originally planned for our transformation plan. So our business management model is already considering the new levels of margin and cash flows, which is fundamental for transformation throughout the next quarter.
Or even being done a little before what what was originally planned for our transformation plan.
Isn't this management models already considering the new.
Levels of margin and cash flows.
Fundamental to our transformation throughout the next quarters.
Speaker 3: a reduction of the stocks, which took place quicker than what we imagined from the bond bid and raise. We were able to bring in over 70% already in the third quarter. Our forecast was half in the third one, half in the fourth one.
A reduction of in stocks, which took place quicker than what we imagined from those long within raspberry, but you're bringing over 70% already in the third quarter.
Forecast, what's happened this year and the third one half and the fourth one will do well.
Speaker 3: And so, reduction of stock also with the SKAs that we did just have turnovers and margins.
And so a reduction in stock also twist is that S. K is that where the Jaguar mine.
So turnover isn't good margins.
Speaker 3: And the total reduction is $1.5 billion if we compare that third quarter of 2023. So we're talking about reaching 90 days. We reached 89 days of stock. We haven't had a worsening, just actually there's an improvement. Stores are very well supplied.
And the total reduction of one 5 billion.
If we compare the third quarter of 'twenty two.
So we were talking about reaching 90 degrees.
Which 90 89 days of stock how we haven't had a worse named its actually Theres an improvement stores are very well supplied.
Speaker 3: and this is fundamental so we don't have any kind of negative impacts on our sales and stocks. So third place, we're really prepared for Black Friday. When we look at the high-tariff stock with good quality, it's new and fresh, we're even a little better than in the past. The big reduction was the...
This is fundamental.
So we don't have any kind of negative impact on our sales in stock so that place for really prepared for black Friday.
When we look at the hydro versus stock with good quality, that's new and fresh were even a little better than in the past. The big reduction was the products that are having lower turnover and a little more aged stocks, which is very relevant in the total impact from the catch up here. The next few months, where you have the payment terms with our suppliers are reduced.
Speaker 3: products that have a lower turnover and a little more age or stock. This is very relevant and the total impact in the cash is here in the next few months. Where you have the payment terms for the size of your reduce.
Speaker 3: The third point is the reduction of the 6,000 positions, and so...
The third point is the reduction of the 6000 positions and so.
Speaker 3: We've already brought in some personnel gains, but the full controversial take place from the first quarter onwards.
We've already brought in some personnel gains, but the full controversial take place from the first quarter onward.
Speaker 3: marketing expenses with more efficiency, and so you have efficiency all over the life.
Marketing expenses with more efficiency.
Your line is alive.
Speaker 3: to the marketing investment on the revenue, we've reduced this by 30%, so very relevant efficiency gains and focusing on core and what generates value. Important to mention that in some channels, such as the marketplace, for reduced investments, they continue to grow, considering the strength of the company's brand and our organic growth has long been really working towards increasing organic growth and SEO.
Do you like the investments on the revenue.
Slide, 30%, so very relevant efficiency gains and focusing on coral agenda, it's important to mention that in some channels such as the market Christopher reduce investments. They continue to grow considering the strength of the company's brand and our organic growth has long been really.
Working towards increasing our organic growth M. S E S.
Speaker 3: so we can have a healthier revenue. Then when it comes to reviewing our store footprint, we have 38 store closings, and we already adjusted three DCs.
We can't have a healthier revenue then when it comes to reviewing our sharp footprint.
38 store clothing, and we already adjusted our three D C.
Speaker 3: And so stores are on time and full, and PCs are taking a little longer, but the rest of the stores will do after Black Friday and Christmas, which are high seasonality periods.
And so it's Georgia.
I'm in for one P.
D C, they're taking a little longer but just what the stores will do after black Friday, and Christmas, which are high season on the grid.
Speaker 3: where we're going to try to burn off some stock and have higher performance. So migrating some of the categories with negative margins from 1P to 3P. That's also on time, and we're migrating to 3P very well without too much of a loss in sales in the third quarter. And then, another really important point, which is the launch of the first NFIDC by Kupka Zariyev.
Where are we going to try to burn off some stock and have higher pro forma so migrating some of the categories with negative margins from 153 P. C.
It's also on time and where might be please.
Very well without too much of a loss of <unk>.
And then another really important point, which is the launch of the first if I D C bike.
Speaker 3: So, this is for the right now. We found that on and now we already have our pilot project operating funding to allow us to migrate as our full base limit funded through the CDC to FIDC at time.
So it was just for the buy now pay later.
In Idaho, we filed that on CPM.
And now we already have a pilot project with five operating in visitor spending.
It will allow us to migraine.
Cool, thanks limits funded with Sidoti.
Two I do think that Teng.
So we're gonna be working on the rollout to all stores and we should be asking us for.
Speaker 3: So we're going to be working on the rollout to all the stores, and we should be offering this full first quarter onward. And then in the first section, $400 per company. And then in the monthly annuality, we'll already be creating to providing the or the transition of some more . . . . . . . . . . . . . . . . . . . . . . . .
Purchase order online.
The reduction.
400.
Monte.
Any one vertical.
Two.
To start with providing.
Right.
Ill transition to have some.
Speaker 2: And it was about 634 million, which is a follow-up to the 602.3 Act, which is important for the country at some point.
Yes.
Suzanne.
630 million, which is.
Oh.
But I had a follow up on them.
She doesn't participants.
Sure.
Michigan with a second.
Speaker 2: It is not.
Okay.
Thank you Cindy.
Speaker 3: And as you pay the depreciation, you pay the off loans and you don't have any basic down payment. So part of this is operational and part of this is a reduction of payment. So the CAPEX, we've already been able to adjust in our investment plan. We had a reduction of very significant, over 60%.
So it says you paid it for today.
Action.
Okay.
If you don't.
Hum.
Thanks, John.
Uh huh.
Hum.
Is afraid yourself, whether this is a reduction.
Capex already just in our plan, we had a very significant.
Over 62 billion.
Speaker 3: And this is a sustainable cutback to the company. When you think about about 400 million that we did instead of on FedIn, which I knew previously. And this is super sustainable. So a customer can pay the call, VWAC, SEO, and some other logistic optimizations that are definitely going to be a competitive advantage to allow for the company to grow. And another bit of important recognition, which was
This is a sustainable.
A company when you think about about 400 million.
Instead of one for the English line.
It's just super sustainable.
All right.
And some other logistical issues that are definitely going to be a competitive advantage for the company.
Hum.
Important recognition, which was.
Speaker 4: And the Casablanca brand, that's the total top of mind in home appliances and stores. That's really strong recognition, reinforcing the company's brand potential. And having said that, the plans moving on are also the main focus of the company, with the cash flow brought into the demonstration
Hum.
Yes, Brian just total minded.
Hello, Brian.
That's pretty strong recognition and unfortunately the companies are.
Brad.
Sure.
And.
Having said that it depends really on close where the main focus of the company with the.
Cash flows.
Brendan.
Thank you.
Yeah.
Speaker 3: fun, all the way to the back, that we see from this condition, okay,
The preparation process impact our plans.
Cash flow of the company. So all of the same objective.
Speaker 5: cash flow of the company. So all of the objectives of the first year of work were really focused on improving our cash flow. When you look at this,
The airport.
We're focused on improving our cash flow.
When you look carefully.
Okay.
Right.
Absolutely.
Constantly.
Yes.
We also.
I think you will subject you will think that you guys have the EBITDAR pardon me, we have the free cash flow.
Yeah Youll damage.
So you won't have it available.
Speaker 4: This is what we are an electoral regime and researchacceptors.
And transformation plan.
The propane.
And.
Or is that will diminish and is to bring in.
As I mentioned a few.
Speaker 3: Thank you very much.
As you can clearly see where are the challenges that we have for rich.
Speaker 5: So it was the
And we have a longer battery life.
And Jackson values cash.
As we talked about this robust Russell.
That routinely broke we're gonna be discretion.
Petrobras should widen the water.
Speaker 2: Thanks for watching, and until the 10th of August , thank you for your support.
The data from the 10th annual joint venture all generics.
In total our lines are eliminated from the whole body of an <unk>.
Speaker 4: From to Ty ining and G.
It just all of us.
All of us and global might European yields on both of them.
Speaker 4: And now we're bringing in new speakers that will add up to the phone.
Ashish.
Speaker 3: So, here we have some of the smaller lab groups, but two big important ones on the slide.
Oh.
Yeah, we book of Hamilton.
Other levers immune a big <unk>.
Which is first penetration of dementia.
Speaker 3: which is first penetration of services. As I mentioned, to extend the warranty, insurance, and installation, to become a client. So this has a really good margin. So we had this pilot to verify what are the best practices for sales and conversion.
One of our key.
<unk> installation mccullum client business has a pretty good margin. So as you look behind the pathological refusal to verify what are the best practices first sales and conversions.
Speaker 3: And now we're going to be complicating the process. It's hard to bring in the full potential of the company, but we're going to bring in the situation. And then we'll be able to do about $200 million more in revenue.
And now we're going to be more yourself again.
Oh gosh.
English language engine.
I'm going to bring into situations complete animal model gives me noise on my hand, they will be able to carry about 200 million more revenue.
Rob I'll start with the service and is at its going to be very popular.
Speaker 4: with the service to the students that are going to be very much if there are a bit of social, vulnerable, call, the student was elected to the company. So, I'll continue to have the exact for the taxes. Right then we have the revision of the indirect contract that some workshops are doing all the individual contracts. So, the permanent support talk to says all of the social
Gerard we have met with Sidoti <unk> co.
And that to the company itself.
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Shops reaping all the consortium have narrowed electrical gleevec generics.
Permanent.
So as you see all of the programs of record.
Speaker 4: So we centralized this, we had a lot of people that tried to create RFPs. Now we have less people that can do this. Like, one, two, three, four, five, six, seven, eight, nine, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 51, 52, 52, 53, 54, 55, 56, 57, 58, 59, 60, 67, 68, 69, 70, 71, 72, 71, 72, 73, 74, 75, 76, 77, 78, 78, 79, 79, 80, 80, 80, 80, 80,
So we centralized the panopticon acquisition.
Rfps that we have lessons with intrinsic watches so materially.
Please go ahead with you and all of those are direct overlap.
History has told me the C level and they are leading to less abuse honesty breathing necessary was under <unk>.
The new technology will be pipe, we have in our reports one for me and I can throw some light.
And I don't think programs, making gradual I was issued a critical do they have a lot of opportunity for NIM will start to see our being quite conservative Gi side the soldier.
Speaker 4: We have a lot of opportunities and we're being quite conservative.
We have a reduction in the.
Speaker 3: we have a reduction in indirect costs as well.
Indirect auto as well.
Speaker 4: So over time, the food capturing at this level will probably take place.
As over time.
Jay at these last four years.
Arguably a swap arrange relationship metrology place Ronald <unk> scores, English, which will show up for us.
Speaker 2: So as we come to this conflict, we'll have some random deals as well. And most of them, you have to wait for the contract to finish so you don't pay the fines. And then you bring in major, yeah, states having to pay.
Contracts will have some marine will probably hold as well let.
And then you have to wait for the country.
Can you guys and then you bring in major and date might be flattish half inch for zone.
Jeremy.
Zero available.
Speaker 1: I want to mention a really interesting point. We're in November . We have Black Friday going on. We're just missing a few days.
Erin Amtrust one of July we're in November with a critical eye on.
We're just meeting a few days.
Speaker 4: And then we have a really interesting shift when we talk about reinforcing casus veri to focus on fours. And of course, it's an agency that's really at the end.
And then rehash apology.
We believe that by Gucci pretty interesting level.
When we talk about reinforcing cosmetic outcomes I'm sure.
Congratulation on the complaint is EMR, what button press release should be matched book of Sydney branch of <unk>.
Speaker 3: Compact grants. There was a huge teship and pray off erve own forgetable ions. The level of engagement, ener ction.
Jean <unk>.
Our storage.
Whereas unforgettable conditions, you'll see the level of engagement and <unk>.
I just wanted to just mention estimates, which was impressed by them.
Speaker 3: It's going to be great.
Amount of U shape of what's been published on it Jim.
All of those justification for pharma companies I E Litigations Williams.
Thanks, John.
You gave us already connecting with Bob.
I've already talked to you about Mr.
Mr to the East coast.
Credits can be great Garneau global based brining, the Aussie Amit Jordi advantages in the main.
Speaker 4: We'll be exploring all of the advantages and the main difference is that all of retail is rational and we don't have this excess of stock issue. So when you look at the issue last Friday, sales are really high because it's the time when you have to sell. But we're not at that level yet and we've already burned off the excess of balance and we have healthy stock. It's a little bit more rational. We have the advantages and we're bringing the excess of sales in.
All our region compression opportunity.
The macroeconomic political challenges or we don't have one.
Stocking issue.
So many of expansion.
Jennifer Mackay becomes defined time, when you have to sell.
These are customers hold back on what we've already booked so burned off of an extensive balance how we have evolved with stock Bush incredibly more rational we have introduced androgens and will bring to try to span almost an impossible question regarding bluestone general Black Fridays over black Friday as pretty good.
Speaker 4: But it's going to be rushed where you're looking at income savings of positive margins and actually generating income.
And it's gonna be Roger Australian margin leverage your income statement, such positive margin Decrementals group and anchored with ablation of MPC and of course, you always have to look at the July quarter.
Speaker 4: That's going to be great. And of course, you always have to look at the fourth quarter with the first quarter. The first quarter is great, but in the first quarter, it's not that good. So coming into proper school by Friday, we're going to be excited, and I'll be home.
Copies of the credit upgrade by a long voyages for RTW larger outside.
You mentioned, you're profitable players all of Australia.
It utilizes a tunnel.
Final slide I saw you guys coming.
Anesthetic voice.
Speaker 6: It's very exciting, and it is very fortunate to be able students of staff who work and water development. And we fully know who they are.
And for Cardtronics.
Roughly.
Friday handbags vulnerable to browse.
Speaker 4: So we're talking about our vision here and here. Are we getting to what we want to bring?
So we're talking about our transition to a new requirement.
Are we getting to clinical sites.
We have an opening her what we wanted.
Sure.
Neighbors, especially Gunnar <unk> boyfriend.
Speaker 4: We have access to funds, so we want to reach 2 billion at a time to allow for transportation and access. I think it's 1.5 billion. We're going to have to find ways to pass the free cash loans. And, of course, we'll be in other libraries in 2025. And the company will also be able to bridge that group when it comes to roads and bridges, which are first managing very well.
Everyone have reached <unk> 2 billion.
Sure.
And the next do you think it's one clinical candidate by infusion.
The free cash flow comes in at the high School Green at leverage on pages, five and the company will search for us.
I'll sneak before she won't be able to grasp the absolute ROIC reached such a trend towards managing the founders' spirit our decision with regards to this issue.
Speaker 4: And it's a little bit better than what I expected, with possibilities to get more information about it. Second point, there were some perks that I should mention before. I'm not sure if it's for a cash flow, but I think cash flow is pretty good.
Well better than what they expected him with US good if it was Banco deadlines, which in labs. So they can find.
All right.
It's beautiful.
That's right.
Cash.
I think most of us might be huge collateral sberbank.
Speaker 3: I think we have some life-changing challenges.
Boston challenging.
Speaker 2: I will see you in a couple of days, which will be in my upcoming meetings. I will see you in a couple of days.
Moving out of our system.
But also keep in.
In line items.
Acquisition of abuse.
It goes into hypothetical baidu revitalization considerably larger with infrastructure.
Frankly equaled each vial of microeconomic logistics requirements and to measure video guava joined he talked about.
Speaker 3: When we talk more about the end-to-end performance, we must keep our registration for profitability in mind with our long-lasting sustainability, allowing for us to end in 2025 with a profitability that's really good, and a good return on investment.
Let's get on with my schedule, the recession could possibly at the mine with a long lasting sustainability, allowing for us to <unk> 25 of these are comfortably that's really quite larger and a good return on it and what's your capital structure, if idea because she's joined us.
Speaker 3: and that the state is up-to-date when it comes to allowing this investment.
An accomplishment.
Allowing.
Additional investment with ourselves that the bottom has been what I think you've broken out some of my pleasure.
Speaker 3: So our focus here is really close to the dimension.
So our focus here is really concentrated in Russia.
He's useful preferred auto I Wanna harmonize open there's a possibility for some targets on a bunch of eliminated zero sports on leverage at or a little better just with the field.
Speaker 3: So I want to highlight that there is a possibility for some charts.
Speaker 2: Now we're making a letter on the graph
Pickup garage in pulpwood at each dose escalated to cloud is good.
And as John said, I'll, maybe I can be a little better fluids, pushing myself before software trustee.
Speaker 3: We're trusting on our confidence in the transmission plan and our strong alliance with our suppliers and partners that have been leveraging on our sales and core levers.
Rusty on our comprehensive transformation plan and our strong alliance.
Otherwise in partnering with AWS and loving languages.
Thank you for being a core lab in Arizona.
Speaker 2: And so it's really good, and we're going to be able to really position ourselves a bit more in Europe and Brazil. And then, of course, we have the cash flow that we're very confident about, and that, of course,
They're really good.
For example, something everybody position ourselves to that Margaret and automation or is it mix.
Of course, we have extra powerful Jonathan.
Additionally, I'm very confident about.
You can recycle youll switch disciplined three months reimbursing eligible.
Speaker 3: So thank you all for your presence, and now we'll begin with the Q&A session.
Transfer of what Youll be offering.
So thanks, all for your presence and now after Covid.
He published decision.
And we also have nausea.
Speaker 5: And we also have Sergio, our unmisturbulation, Althewa GFO and Gabriel are a maturulation pet. To be able to answer any questions, thank you all so much. Gabriel, do you have a can you carry those questions? Okay, good. More questions from the other side. And three may proceed.
And Mr Emulation, Alkermes, geophone and Gabriel our maturation tactical regards to be able to answer any question retail so much Gabriel G has earned a total capital I should okay.
A brief question.
Fred from Bradesco <unk>.
And three you May proceed.
Yes.
I want a fully Washington Huh.
Oh, I think it move would pick up in home.
The film in Acapulco.
And then wanted to talk to the smaller then Alamo mice. She might we have two questions pretty maniacal Curtis I'll be making their own book Rolls off the first one is about the.
Speaker 3: The first one is about the consumer with a court record.
Sure the consumers in our core categories, one is that yes.
Speaker 3: back to this for first 40 days in our fourth quarter.
Action is for the first 40 days or fourth quarter.
With a drop in interest rates.
Speaker 3: with a drop in the interest rate, any kind of impact, perhaps because of higher tickets, some are dependent on credit. And so if you feel like anything is getting better, that's the first option. And then a bit of the cash dynamic in the third quarter, so we saw some unfortunate advances in the transformation plan.
To my knowledge any kind of info gradualism higher tickets from arent dependent on China.
Thanks Nathan.
We feel like anything getting better that's the first question.
And then.
It was a rational dynamic in the quarter from yourself unfortunate advance ratio.
The transformation plan is on all major Mike Scott, we know it.
Speaker 3: We know it's a little harder when it comes to the dynamics of what's going on.
Okay.
And when it comes to the other dynamic for working capital.
Speaker 3: And so if you do a self-counter, the cash
Yes.
And so if you could give us.
<unk>.
But obviously.
The cash in the short term that'd be great.
Oh.
So okay.
Speaker 4: So OK, and I think now we're back. So let's turn this off audio. But thanks for the questions. First of all, we still don't have the feeling of an improvement in demand. When we actually show you back on the third quarter, we're having the market share. When you see that, we can see it here on the map.
Okay, and I think now are back in shape as people estrogen is audio but thanks for the question.
We still don't have the feeling of like Nims driven in demand when we had.
Actually sharing items.
The third quarter with the user market share.
When you see that might.
Please mute jarrod.
But even with stifle.
Speaker 4: But even with starting very recently and kind of keeping up with the volume of sales and online So when you look at the board category
Kind of keeping up with the volume of sales and online.
So when you look at the keyboard category.
Yeah.
You say pressure to what you mean.
Speaker 4: It is very pressure and not much of a prospective ??????? next time can bring this back.
Not much of a perspective on it.
All right.
As you can consume on your spec construction. This is cute army to me now.
Speaker 3: and this is confirming itself and our invitation to help move some kind of an improvement in the second semester. We have helped reflect as an improvement from a macro perspective when it comes to credit for a team. And so of course the drop in interest rates helped. And so...
Distributions, which I'm kind of an improvement.
Q4, we ask our digital consumer bank gives FMC.
From a macro perspective, when it comes to credit spreads and Timna. So of course, the drop in interest rates housing to ship deliveries and so forth.
Speaker 3: This helps also to unleash the pineapple a little more and maximize your sales. But from a demand perspective, we still see the same kind of scenario in properties, how we'll find solutions, it's all very pressured. Now, they asked us to give us a little color on the fourth quarter. What we've seen
This helps also to unleash a little more.
And maximize these panels that from a modeling purpose at.
Actually we still see the same kind of scenario and properties.
He has been solved very patchy.
No.
Can you give us a little color on what we've seen.
Speaker 3: because you want to use 2023 to improve cost. So we even had some provisions.
When a user H H.
I will be available will improve.
Even have some provisions.
Speaker 2: I don't know, you'd be a little more conservative than you have almost now, because we don't want to have any risks in 2020. So it's better for us to be favorable.
We are at on March seven with Ms. Zhang.
Almost zero.
Because we don't want to have any residual in 2009.
All right.
<unk> changed the Atlantic they might be before April.
<unk>.
We have Christopher.
Speaker 3: We have Christmas and everything, so it is better. And from a margin perspective, it's not going to be a reference, apparently. But we do have some write-offs. And we have the impact of the cost. We have 30% of the balance that will still be sold in the fourth quarter.
Jud is better.
And from a margin.
Not gonna be a reference.
We do have some write offs and the impact from call it 30%.
I will still be sold into your question operator.
Speaker 3: Black Friday will give us some opportunity for adjustment, but we also have some additional discounts. And when we go to the fourth quarter, it's still not so concerning.
Black Friday morning.
Opportunities Jeff.
Gentlemen, polluting shorter aerial system.
Pursuant to account.
First.
Journey from switching from Chicago homelessness relate to <unk>, Inc.
Speaker 4: with the income statement of the company, which is the content of the cash flow.
Chairman of the company with effect from the cash flow.
Speaker 3: But we do start seeing some improvements in the cash. The cash production was very significant. And we will continue to have some improvements.
We start seeing some improvements in the cash and short reject short very significant and we will continue to have some improvement on Monday, which was the two and the.
Speaker 4: to the company. It's a very positive way. It is a very important step to help organize things that are of another pay. And it's important to mention that we're talking about a very big company. So we are supporting.
The company.
It is a very important.
Could help organic start ups.
Other PE and it's important to mention that we're talking about.
So what I want to go with a single.
Microphone <unk>.
Speaker 4: and we have to have a few quit. That's why we call it the year 2025. Because by 2025, it's the time we're going to transform the company until the end of 2024. We have a 2025, but our vision is to be a reference and it comes to a certain investment capital three where they want to start out with a reference. And whatever we can fix up now, we'll fix up now.
Transforming the company in a single quarter ethical and so we have to have a few questions.
That's why we call it.
25, <unk>, a Pennsylvania refis.
We're going to charge them the company Julian J J score and most of his own.
I, usually say 2025, when our efficient is about a restaurant when it comes to return on invested capital through where they wanted to start off with Bob.
And whenever we can fix it up now with IPP ministries or do.
How many peaceful.
Speaker 2: And we'll have some cleaner quarters.
We'll have some cleaner quarters GDP Economics festival brought up in Europe.
Miracles, you reach through the variables that'll make it a lot easier on the frequency.
Speaker 2: So the first one, and second, we have a need for adjustments where we would include this non-primitive. Can I focus?
The first.
If I can just squeeze one other need for adjustments, where we work with.
Excluding nonrecurring.
<unk>, our first <unk> morning.
And then Doug if it's a big focus on fixing things up and having Martin unintended Jim expired without any kind of risks with your answer.
Speaker 3: a big focus on fixing things up and having more than in 2024 without any kind of risk.
Speaker 1: and then continuing the plan that we're very confident about. Thanks.
And then from generic decline.
They were very confident about that.
Thanks.
But he got the pedal nonstop.
Speaker 3: Thank you, Pedro. Now, our next question is from Nicholas. JP Morgan, Nico, please.
That's helpful. Thank you Pat now our next question is from will <unk> with J P. Morgan Nicklow. Please put together another thanks, Kurt. Thank you you know to predict your question with adjuvant was the following.
Speaker 3: Thanks, Super. Thank you, Renata, for taking our questions.
Speaker 3: We have two, actually. Nadia talked about how you're already deploying many initiatives in the restructuring plan. And you also talked about some things that were maybe a little easier to deploy over time. And I want to know if you were able to map this out or identify any of this in the plan that you just mentioned, or something that may be a little more difficult to execute within the plan. And my second question is from a supplier perspective. How has this conversation developed now?
<unk> you talked about how you're already with coining.
Any initiatives in that respect and fine and you'll start to multiple things that we might be a little easier to deploy and Mr. Just over time and I want to know if you were able to gymnastics apparel origin in China.
Restricted upon that usually sprint churn.
Something that made with Walmart tissue to execute the plan.
My second question is from Nicholas.
How has the whole notion these conversations we follow <unk> know that.
Fear had infrastructure level.
Speaker 3: via head of structure levels lower than what it had in the past. Thank you very much.
Lower than what <unk> had in the past thank you Nicole.
Speaker 4: Well, Nico, from a physical perspective, the most complex weather that we had was the FIDC.
I'd say.
Most complex leverage now that we had was on <unk>.
Which broke almost chromosome when we talked about launch here.
Speaker 4: When we talked about launching it, a lot of people said we had a very tight schedule.
Okay.
A lot of people assume that if this is if we had a very tight when sketchup is large it's going to cheat because it does seem to be.
Regional Bill mentioned would yield a key anchor so there was no cash or BP.
Speaker 3: We would have the cash coming in at the MIDC level.
Some of the cash coming in at the C level.
<unk>.
Speaker 3: so that we can have an FIDC that's really safe. And so this is the biggest challenge we had here.
So that we can have enough I didn't really say.
Oh this is a big challenge we had.
Speaker 3: I'd like to take this back to those really well. Implemented by the team with the partnership with the GT and we're able to set up an effective service to carry new reference in the market.
Like a day perspective, bodes really well implemented by the team with <unk>.
C G aware of it.
Pardon me a reference in the market.
Speaker 3: when it comes to the criteria, and bringing a lot of fraud prevention aspects, more criteria for even more discipline, and governance, and the availability of credit. And we already have this very positive history, which would bring in policies even a little better.
When it comes from.
Period.
Marino.
Prevention study more criteria.
Even more discipline and governance and the advantage of it.
We have this very positive ESG, which would bring in experts even a little better your buy now pay later vishal.
Speaker 3: And also, thank you for your messages, that was the biggest risk.
And also <unk>.
Question about the biggest risk or just switches.
Speaker 3: which is where we waste a bit more time on getting everything right so we can have a good FATC and now things are progressing very well and we should guarantee that we have no mistakes or errors in the system. And then we'll have to measure the security when we adjust things.
Which is where we.
Waste a bit more time on rent, we can ever get efficacy analysis.
That's been very well, we shouldn't be able to guarantee that we have no mistakes or errors in Boston and then we'll have to measure. This is Jordan would just thinks about Blackstone.
Speaker 3: If there's any sense, like a freeze on Black Friday, or where it can't happen anymore, so that we can put on some protection if we need it, just to make sure we have some tests. And if necessary, to kind of get them in the way a bit more.
It sounds like a freemium.
Sure.
Good morning.
And if we need to adjust my accent.
If necessary.
And the way a bit more.
It can be fixed.
Speaker 4: to be a better fix and I can celebrate the raw of the stores, but I hope that in January we'll have all of the stores operating with the FIs to see financial instrument, which will allow us to migrate a little quicker if it gets a little later. We'll take a bit longer to be able to be at a very risk and we have to and from a structure perspective, others.
All right.
And I hope that in January we will have all of our stores operating to begin with DFA to see financial instrument, which will allow us to migrate.
So it gets a little later I will take a bit longer question, we'd be cathedrals secretary is the risk that we have.
And from a structure perspective wherever.
I've heard you say.
Speaker 3: for the operation of the packaging, so we went to work.
The risk is really on operational averaging 70 much work.
Speaker 3: to make this all take place and improve our cash flow and then keeping the company in the core categories. We'll continue to gain shares in the market, especially if that's gonna be less of a structural impact. When these kick back, we'll be able to capture even more growth.
To make this all.
It plays in it.
And then.
Beyond the core categories.
<unk> gained chellsie bottlenecks and American furniture, that's could be less structural impact when things get back we will be able to capture even more growth.
Speaker 3: So, it's going to help us, but then we're sure to measure rupture and loss because it's different when we enter stock with the opportunity to optimize risk, a big site, being in a lot of impact. We need to monitor this to not have any additional ruptures. Thank you for doing a lot of work.
So it's gonna have times bigger than the shift to electrification measure.
And last year because of the sentiment reentered stock we can pay for it.
The opportunity to optimize this great news.
Alright.
Shipping in a lot of impact we need to monitor this should not have any additional ruptures.
Doing well.
Wonderful.
Speaker 6: We're, we're monitoring.
Hey, Brian Chipotle monitoring.
So we can go through and.
Speaker 3: so we can go through them, performing things well. And the team has been an excellent collaboration that makes me feel confident that we're on track and that we'll really be able to have a transformation over the next quarters.
Farming things.
He has been.
Excellent.
That makes me feel comfortable that.
We're on track and I won't really be able to have a transformation over the next quarters.
Yes.
Warm.
Great.
Thank you Nick.
On the point of where the local segment.
Maroto capability.
Thank you Scott.
Across the market.
Our next condo dweller absolute.
Speaker 3: Alex. Now, to the 12th, I'm city paying. You all, you may proceed. Okay, thank you, bro. Good afternoon, everyone. I wanted to go to the community here with this question on the FIDC.
<unk> from Citibank.
You May proceed okay.
Good afternoon, everyone.
I wanted to.
Trinity.
My first question on the F. A D C.
Speaker 3: And what does this bring in as opportunities? Very transformational for the company, right? You have this new funding source.
Now to what traditional screen in as opportunities very transformational for the company.
Revenue from new fundings.
Provide credit to Ashwin I understand it's very interesting because you migrate the city Seattle F. A b.
Speaker 3: provide credit to consumers. I understand that the process is very interesting because you migrate the CDCIS to the FIDC. And so I want to hear about the opportunities to tap the sales through this new source of funding. And I want to understand.
She will tell you that.
I don't want to hear about the opportunity.
The sales girl.
Getting this new space was funny and I wanted to understand which processes. Once you keep keep us live.
Speaker 3: Once you keep the government coordination and you're saying that you have a potential to reach 1.5 billion in the FIDC, what would be the resources that you would need to keep the 20% coordination?
Origination and you're saying that you have a potential to reach one point I was there any issue here.
What would be the resources that you would limit.
Enabling 20% subordination scratch and then I wanted to promote cash generation also.
Speaker 3: And then I want to talk about the next generation also, and talk about the net situation of
Talk about that.
The net.
Insurance as attrition of the tax assets you had said before was related on the kind of opposite of things David.
Speaker 3: track census you had. So before you did things that kind of all of the things you didn't really see the monetization so I want to actually hear about this and how this took place.
We see the monetization.
I want to ask to share about this and how this money.
Did you have to sell some ice age on text message on what should we look at in your mature and in front of these various regarding a return here.
Speaker 3: Did you have to sell some assets, some tax assets and what should we look at in the future? And then finally, sorry for going over time here, but I want to just mention, when do you think there is enough cash to pay off the rest of the debt? Thank you Jean. Any questions?
I wanted to just mention when do you think.
Fair enough attached.
The pay off the rest of it.
Okay. Thank you John for your question Bill a woman and we'll start off with just a number one about the outbreak.
Speaker 3: And we'll start off with number one about the efficacy benefits. It's kind of what you mentioned. But after Elsie, we'll talk about this. It's, of course, a new way for us to capture what we think we just put in something.
You mentioned that you were talking about it.
It's of course.
A new way for us to capture.
Yes.
And in some ways Houston.
Speaker 4: of the joint corporate credit with the Casa Bahia risk for funding high quality elevator buffers for him and Casa Bahia when he migrates to China. If they can see the person, the housing, the flexibility of the bank to increase duration.
Great credit for those with the colors by yearend.
We're funding.
Yes, hi.
Palliative efforts.
When you migrate this shouldn't.
Christine.
Sure.
Increased duration to build their own.
Speaker 3: the capital cost and even bring in some flexibility to have additional resources.
Capital costs and even bring in some time.
I need to have additional research and tried to mutually reinforcing Ecuador since we'll have a more conservative cash pooling.
Speaker 3: and capital since we'll have a more conservative cash policy.
Oh would resemble the union.
Speaker 2: So that's a huge benefit, and from a sales perspective, as you mentioned, we are losing, currently, cent sales, so there's still room to gain about $250 million in sales.
From yourselves and measurement.
Losing carriers need shale southern salesman.
I mean, it was about 250.
Got it.
It all got Mahinda panel penetration.
Speaker 6: And if we consider the potential, it's a lot of great things that are being worked on. But I'm going to end with this. And where do we want to grow? We want to grow in food, in the best rating we have. Where the rates are a little lower, and the possibility is a little lower, but...
We're going to be more.
And if we come up with considerable potential to our creators.
The monarch.
Just a word about it when a girl.
The best ratings.
We're the right general range.
Profitability little lower back from Asia, the rich and with our packaging gross is lot better than where the US was really good but you have a lower risk depending on the variation in macro scenarios.
Speaker 6: The risk, our tax growth has lots of it is and growing more the first is really good. But you have a lot more risk, depending on the variation in macros and arrows.
Speaker 3: and economic conditions of those customers. So we do see a potential to sell more and penetrate more, especially in categories that separate more, which were properties, food, fireworks, furniture, where we have a big penetration in major leadership, but that dropped a lot from a perspective of market demand due to access to credit. Consumers are postponing this when they're not in a comfortable position with unavailable credit.
Economic conditions have been good so.
We do see the potential to it.
One Morris ashamed calculations for which room good properties.
Sure.
Have a big penetration in major leadership residents dropped a lot from our perspective us market demand due to access to.
Credit ethanol consumers are postponing does when they're not in a comfortable position on available credit our skus funding so the settlements.
Speaker 6: So, the sum of low interest with FIDC funding will allow us to get back to growing in furniture and increasing our share, which is going to be very important for the company's margin.
Low interest with <unk> funding.
Will allow us to get back to growing in furniture, and increasing our share and to what extent you're going to be very important for the company March April other boxes.
Speaker 3: Now, I'll let Els to talk about the monetization aspects and then also about the cash flow. We have a third question here. We have a plan that in the 22nd quarter of 2024, we'll already have it in this one. We've got cash funds in 2023. And the free cash flow minus payment of interest, which is our main target.
I'll, let <unk> talk about the monetization aspect and then also what the cash flow.
That was your question here, we have a plan that in the second.
Second our.
Sure Walter.
Cash brands.
Three in the free cash flow minus 10 minutes and of interest which is our main park in Japan.
Speaker 6: Continue far
23.
Turning first cause losses, I'm, sorry to give you on the quality itself.
Speaker 6: And it's already going to be a lot smaller. So on the forecast, I'd like to share the situation. We're in 24 negative. We have a more positive end of the year. And then we'll start kind of clearing cash from going forward to the end of the year, because there's some transgressions in the system.
Yes.
Sure institution, where interest rates are negative.
The liver were positive and military.
Cash from good inflection dependent from transmission and the ones that come up.
Some of them.
Speaker 6: and our labor legacy, as well as the needs and other things that add up to over one feeling realized in kind of 25 for Carlos the right execution, just about the future of the time that I've already on track. So we expect that we'll have a such a city decision.
Our labor legacy liabilities and other things that add up to over 1 billion realized in penetrated five regardless of our execution is just about the future of HIV.
Let us already on track. So we expect we will have a second pressure kidney tissue.
Speaker 7: and we're already operating in another level.
And then we'll already have the order.
Operating in another level slippage. So we'll have other discussions of cool stuff going on but on all that we're still keeping the panera oven, so that whenever it's grandma or be able to accelerate metric.
Speaker 3: So we'll have other discussions of cool stuff going on that we're still keeping in the oven so that whenever it's the right moment, we'll be able to accelerate with. Els, if you want to get into more details and bring in a little more on the FIDCs.
If you want to get into more details and.
Bring in a little more on the F I D CS.
Our model.
Speaker 4: Are you on mute? Or we can't open up our mic. So, how else can you please open up your mic? Okay. Okay. Hi guys, any questions? And so I wanted to read some points here from Tenato and then I'll get it to the 506. Question of the...
I R nemer.
Cannot open up her mind. So hubs can you. Please open up your mind our main conversions.
Hey, guys.
His question.
So I wanted to unwind.
I'm joined here for two milestones and.
It would seem cool.
I should note you mentioned.
Speaker 6: 5 billion is going to allow for credit limits, that's very important to highlight the profitability of the FTC remains with the company, with the support of the quotas, so all the difference in the spread we have.
I believe you are going to allow for credit limits its been unfortunate that analytical profitability of desk.
Maine with the company with these partners so the difference in the spread we have.
Speaker 3: between what we have versus the funding costs and losses remain with the company so that's really positive in our results and we don't have any kind of change in regards to this unless
We have first year funding.
Most of this.
Maine with the company.
That's really positive in our results.
We don't have any kind of change.
This arrest and in effect.
Speaker 2: flexible to provide additional growth that we can achieve. But what I want to mention about the FITC is also very important is the structure that was built in, which mentions it could be the model. We did dedicate a lot of time and effort. The time was actually short, but a lot of effort from all of the teams, restructuring IT, with structure.
Next slide to provide additional ground.
We can achieve.
I want to mention what the effect is also very important infrastructure that rich.
Rich mentioned.
The model right now.
Thank you.
At time relationships a lot of effort from all of its restructuring a T. The largest bucket.
The <unk> team.
Well I'll say at Heathrow that personal is important is that we should not monitor the process.
Speaker 6: So the first of all, what's important is that we should not modify the processes, any deep evrytransfer, or still team and customer's will and change your levels of sales, want to increase actually the substantial losses. And the FIDC structure the variable past to address the success he has not mentioned for a lot of people, create their documents, their bills, and kind of past the story. So it's incredibly important to have this.
There's any deprivation Sir Charles this is Joe.
<unk> customers when they changed the level of sales is going to increase actually.
This with engler auspices.
You saw the fed has restructured the very robust to address weaknesses as successful as Lance mentioned for a lot of people.
Greater document their bills in the store's search firms unfortunate to have measurement God bless you.
Speaker 3: I'm going to show it to you for a bank correspondent in our 1,100 stores that whenever a person is paying cash, he can already write off this on the FIDC. So we already considered this back and stuff.
Inc, Chris Amit.
Hundreds.
Whenever we can obtain kashi.
Already I'm sorry.
Write offs.
D C. So they already considered the Cheetah Lucas.
Go back and watch that and cause reduced.
Speaker 2: And this also gives us some legal safety and ball. And such a strict system gets very hard, like a digital biometric trick, 100% of the cases that we also reduce the substantially when it comes to fraud. So the different pages and levels of protection and safety, keeping us safe, that way we're able to keep up with.
This also gives us some withdrawals safety M O M D.
All right.
He has led digital biometric converted 100% of the cables in the wash residue jobs such that when it comes to <unk>.
The difference is in.
A lot of protection and safety.
Thanks Scott.
Thank you bye.
Speaker 4: Well, we have been able to deploy a lot of this. And I think this is going to segregate the corporate risk and the receivable risk, which is really important.
We kind of get them closer to us.
Second takeaway should be that corporate ratios and receivables.
Israeli and some could be.
Speaker 4: We need to reduce this 5 billion of exposure and corporate risk and help with the banks. And see, it's not like Casablanca is going to the capital market. It's actually here at the risk. But in the FIDC, again, you guys know this well better than we do, but actually reduce our exposure of credit as a whole in a broad way. So that's very positive and creates more flexibility.
You reduced your production is five <unk>.
So I understand brokered risks with the bank.
And e-commerce.
He is going to the capital markets with luxury.
Chris.
And if it.
You guys know, there's no operating weakness.
<unk> actually reduced our exposure of credit as a whole.
Broadway Plaza.
It creates more flexibility for us.
Speaker 3: us. Then the second topic about cash generation is we really added a lot of strength and effort on our tax teams to monetize and consider that we have a lot of tax assets as you notice that we're growing over the time and so especially for ICMS and we had an effort
Yeah.
Thank you.
About cash generation.
We really added a lot of strength.
That's true.
<unk> teams to monetize.
And consider that we have a lot of sensors.
We're going over.
Over the time, and so, especially ICM plants.
Habits.
<unk> already been taking place and twist, even more emphasis at Odyssey.
Speaker 3: already been taking place with even more emphasis to see what we can do to accelerate this monetization because once again I think it's part of our transformation plan and to consider this and we can monetize this to be able to perform this plan. So this is an important initiative and we continue to monetize this with the carve-outs and sales to third party.
We could do to accelerate the monetization because once again I think gives me a lot of our transformation plan.
Consider this.
We can monitor to be able to perform that's pretty normal for us is an important initiative.
We continue to monetize this.
With a carve outs and sales to third parties and so we have the second part.
Speaker 3: We have the second part of logistical and tax operations and how we can optimize these issues in our logistical model with.
Couple of logistical and tax operations and how we can optimize physician.
In our logistical model with Schlumberger.
Speaker 7: something that we can complete as a whole, I think it's important also because we have this third point that also helps a lot. We talk about stocks a lot, cash generation, etc. And it brings this benefit at a collateral level that's very positive because we buy less.
Something that we can simply as a whole I think it's important also to chipotle because episodes point that also helps along here we talk about trucks alone.
Our cash generation is such a national Lockdown and it brings us benefit.
Lateral level, that's very positive.
GW by less and so the mortgages you bring down we have less credit we can and we sell more analytics alerts are diverse.
Speaker 6: we have less credit taken and we sell more and that accelerates our debit. So by the actual nature of the operation, the reduction of the stocks facilitate traditional monetization here on our side. So I think it's a set of things. There's not like a single initiative. We'll continue to accelerate, of course, maybe not at the same magnitude.
By the actual nature of the operation and a reduction of the stocks is related to additional monetization here on Earth.
There's not like a single initiative will continue.
And of course.
Maybe not at the same magnitude.
Speaker 3: at this aspect, but we'll continue to search for efficiency. We were able to achieve $1.5 billion in the last two months, and we're going to try to still search for testing the operational efficiency, looking at the level of ruptures, because we also don't want this, but whatever we can optimize in the working capital as a whole is clearly going to be observed here.
And at this at this aspect, but we'll continue to tick up.
For efficiency, we can't ramp which achieved when it has been in the last 12 months that we're going to try to stosur shared testing the operational efficiency.
The level of rough just because we also don't want this.
Whatever we can optimize in the working capital as a whole is clearly going to be observed here.
Oh gosh.
Speaker 6: Okay, perfect. Thank you. I'll see you. Thank you.
Okay perfect.
Thank you all soon thank you.
Apart from our peers.
Speaker 6: Thank you. Next question is from Danny Yeager at LCP. Danny, you may proceed.
Question is from Dan Jaeger at NXP Lenny you May proceed.
Speaker 6: If you have any questions, please feel free to reach out to the competitive panel and I want to take questions. Thank you.
And the same.
Question.
No.
Other competitors.
Michigan is dental.
But he said Scott.
Speaker 6: So heard. one com partment and the nucleers have seen.
Okay.
My pleasure.
I just wanted to touch on them and then you create them and B.
We have seen the covenant.
The main cause mice.
Speaker 8: Amazon also working on some otherdoes it mean in most of the movements and just something, as well, not it, either it's how you felt. But then an important stage that you potem.
Amazon also working on some other when mechanic movements and G suite.
Javier.
Ontario and.
Thank you.
So based on the issue on the news that came out yesterday about one category or two.
Speaker 6: Based on the news that came out yesterday about the 1P category, this includes 23 mentioned in the article. And has this 23 already performed an adjustment quiz? Or are there more categories that you plan to map out? And how this will be when it comes to the country's strategy as a value proposition?
'twenty three.
<unk>.
Artist most lending.
Materiality.
Just really quick.
Or are there more categories that you plan to manpower.
Do you think how this portfolio.
Should the company strategy is a valid point.
Speaker 6: You think you're gonna focus more on one thing, do more on your channel, with the stores, maybe to see what is available, how do you imagine the strategy and what the company wants to be, and also when it comes to the positioning process of it. Okay, thank you for the question. We'll see this competitive side of the story, very rational. I think no one can...
Do you think you're going to focus more on one P M do more omnichannel.
Yours.
Maybe briefly related rather than when you how do you imagine this strategy of what the company wants to Danny and also when it comes to the board.
Positioning questions.
Thank you for the question.
In this competitive surrounds that includes very rational I think no one.
Unlike major bets.
Speaker 3: perform like major bets, I wouldn't be a lot more rational. But of course...
And the rationale behind the curve.
Speaker 2: It impacts us more on all of the generic platforms. I'm starting off, we already have some movements coming.
The impact of earn off of generic classes.
Starting off.
How do you build.
Crestwood is for a moment, whether you sell a lot of organic.
Speaker 6: Of course, black is a moment where we saw a lot of our category.
Speaker 3: So the items that have the greatest added value are people waiting.
So they have their greatest Abercrombie where people wait.
Speaker 3: for the Black Friday to be able to buy, so you don't have like a big shift in this volume, but from phones and trains and all of that, and then you have a lot of volumes as well, so it's just colored when you announce it like, so it's a strategy if you don't see someone having such a consistent strategy, and that's something that kind of gets in the way, and they are critical. It's a competition with the player region, with the regional players and the pillars.
Black Friday to be optimized you don't have a cup of tea.
This volume, but from then.
And then.
And all of that.
Then you have a lot of volumes as well so just color.
When you announce it.
Strategy is.
Someone highway.
<unk>.
And that's something that gets in the way and they are temporary.
Just want to play a region regional players on the pillows squash. We could also have omnichannel has been rational in Nash disease conditions.
Speaker 4: I also have on my channel has been rational in conditions and we're all on the same page. And when we look at a shift in category, when we presented, we have a tiny category, a lower average name.
And then we're all on the same.
And while we love to address.
As to the category.
We presented.
Tiny.
Got it great. Thanks, guys.
Box.
Hello.
A lower average ticket.
And we migrated to three P J B groh pillar.
Speaker 3: and some other general items that we might be.
And some of their general items that we might get it.
Thank you, Mike, which market and so what's the strategy.
Speaker 3: And so what's the strategy? We're going to grow in 3P, but we're going to focus more on core. So we even incentivize this a bit, because imagine the purchase strategy if we were buying two different models of refrigerators and we're supposed to keep away from one part. So now we have many. But sometimes you have like 10, whereas where you're making more money, you can concentrate on ballings and have very competitive conditions. So with the others, I could sell 3P.
Integral in three feet of again, we focus more on.
So it's even incentivize this a bit because the.
Purchase strategy, if we were back to a different model.
If it is in the bathroom one.
And now we have many.
Do you have a 10, whereas where you're making more money on shape all of them have very competitive conditions fell with the others I could sell through data.
Speaker 6: So it's a short presentation, but I'll look forward to it.
Draw it for surgery.
The Wall Street otherwise.
Speaker 6: whether you order and deliver it at the customer's house or if it shows already in the categories. But now, of course, you have these accessories of the four categories, right?
The customer.
If it goes out.
Right.
All right.
Of course, all these accessories.
He has been our kinetic.
Speaker 6: We'll talk about earphones, and all of this PHP, and we can sell it. And we're done with PHP, but we will continue to end it, right? We have a lot of it. We've stopped doing it. We've stopped subsidizing it. So the best thing not to do is providing free free and performing all these conditions as a solid small church, which is.
Check your phone.
I'll, let the speech vision, yeah, we can sell it.
Our agenda for today.
Jessica.
Right, we have a lot of these.
Restructuring.
So how could I check it out.
That's not too bad, providing cray and conditions like a small.
Cheers.
Speaker 8: with a company paying for it, it doesn't make sense, right?
Thanks, Doug.
So.
Beyond the bankruptcies with People's really we haven't seen that.
Speaker 4: We have seen that the community has upped its growth.
He has.
Mike.
Speaker 6: There is also this migration cycle, there is none.
So this is Mike.
There is not much.
Congratulations.
Speaker 4: I appreciate everyone for coming out today. Have a great day.
Mr <unk>.
And then my opinion, especially.
The book.
Speaker 2: So it's been a big hit when it comes to selling television, cell phones, pictures. And when you look at the offline, you need to have this.
Hum.
Alcohol available for sure.
Sure.
Okay.
This means both of them at a beautiful natural category.
Hum.
Yes.
And also if it is I appreciate that.
Speaker 6: So, whether it's 1P or 3P, maximizing our value generation, and so we have some advantages also when it comes to ROIC, and for some, I don't think it makes sense.
Great to hear.
Very competitive whether.
Whether it's lumpy and 339.
Amazing value generation.
And he has some advantages us when it comes to right first time that make sense.
That will be our budget, but ensure surgeons from Kevin Pietersen based regimen and that customer and Fortunately. There then it's going to sell so we can figure it out.
Speaker 6: If you have a huge customer base, 30 million active customers, then it's going to sell. So we can pitch out beer, diapers, and all of that without any incentive. Could I have investments? Yes, but it's been added cost that I can fit in. So if my commission is $13,000, then my operation may cost $3,000. How much can I spend to have a contribution margin?
Peer personal.
With that Mike.
Yes.
Investments yeah.
Yes, but if I can.
So if my commissions.
And maturation of many countries in Europe.
How much and perhaps congratulation microphone.
Speaker 2: And it depends, are you going to have an involvement or not? What's the framework? So when I work at Paloma, I make a little more. It's good, because I'm working to invest a little more. So someone has to have a lot of tools to reach their expectations. So it's mostly marketplace.
They are you can happen now what's the freight.
So when I work that we've done that and make a little more of that.
Sure.
Why.
That's correct.
Ms Natalie.
Most importantly.
You want me to take enough despite their size.
Yeah.
Speaker 4: One way to mention here is the level of service when it comes to OneBeach.
One thing to mention here.
Level of service when it comes to me they were lumpy.
Improved a lot.
Speaker 2: So, I also thank you for that.
Got it.
Yeah.
Sure.
Speaker 7: So now I have to buy everything because I have to see what you do. But at the end, we're fighting over it. We've been able to make good prices, very different deadlines for delivery. We're also very different. We're not selling to the world, but to the next point of service, we are very competitive. But from a focus perspective, when it comes to our investments,
Right.
Now how much of the FCA.
You have to see what you mean.
And we are fighting over them in April.
We've made some event.
Your line is for delivery were also solid.
Next question.
Yes.
We are very competitive.
Prospectively.
Smith.
Speaker 9: We're going to be focused on these categories, but more organic, and considering our scale, it tends to be consistent and have a bit of growth, but it's going to be a more normalized growth. And that's what we're seeing.
We're going to be focused on that.
And these categories Mark on April when considering our scale.
This should have a bit of growth, but it's going to be a more normalized growth and that's what we're seeing now we still anticipate a cloud a threat.
Thank you very clear.
Thank you Denny and thank you our.
Speaker 3: Thank you. My next question is from Irma from Goldman Sachs.
The next question.
Irma <unk> from Goldman Sachs.
I got a fourth.
Speaker 4: No, sorry, I think we put in the wrong person. Okay, now it's your turn. Thank you for taking my hand. The question I want to ask about the shift of the partnership with the Cobra and the Salazar.
Oh, sorry.
So you put in the wrong person, okay now with them.
Thank you. Thank you Sir you May ask a question I wanted to ask about.
If I could.
Understood.
The programming expense.
Oh no release minefield.
Speaker 4: We talked about non-economy in the short term, but how are you planning for this partnership and possible expenses, impact, one-off?
I'm talking about 93 in the short term.
How are you.
Hi, Michelle.
Oh gosh.
It's possible.
This is one off.
In fact.
One off.
In the first quarter still and so Buffalo My second question is just about.
GP loosely matters.
Speaker 6: we find out later, but what I saw and I'm just doing with the previous comments, you were still having a very relatively conservative approach, and now you have more flexibility, and you've framed this pretty well.
Oh sure.
A previous comment with humor.
Still having a relatively conservative approach and now you have more flexibility in your screen. This pretty well if you can give us.
Speaker 6: But what I understood, you're so focused on the risk categories that are a little safer. So, I just want to understand about the moment you're in and the risk appetite within the binary operator and also this balance between both products with branded, co-branded and binary operators. Those are two different topics. Okay, thanks.
I would I understood. Your second question on the risk categories that are in phase III.
I mean, I just want to understand.
At the moment, you an image that risk appetite.
And I'll go in the year.
Hum.
Between both products.
Cobranded and badly.
Okay. Thanks for your message mucosal changes interest about all.
Speaker 6: First of all, the card, we had worked on this new contract, and there's a perspective for targets and results. And until we consider the design of the contract, we're still a little bit lower than the estimate. So when you consider the performance of the third quarter, then we understood that it would extend.
Well we had.
Contract.
And Jay just for.
For target and result to ensure we continue to decide about Cuba.
Just a little bit lower than yesterday.
When you consider the performance of the third quarter was.
Understood.
These results to work on the surface if you look at the.
Speaker 6: to work on the services. If you look at the volumes for our pillars, they're already numbers that are a lot stronger than what we had done.
The volumes.
Hello.
Alright.
At Shanghai.
So.
Speaker 4: So we have this second generation card that we improved the cost of the card, with the yellow that comes by a fast code that is also a graphic text. And we have some others that really show the different types of cards. Look at this.
We had this generation console game Trust.
Johan <unk> alone.
When it comes back.
Okay.
We have others.
Levers that.
Really show.
Get this resolved.
Maybe even.
Speaker 2: maybe even in the third quarter, and have the risk of having to do it up ahead. But we've tried to have the risk of having to do it in the third quarter. Then...
Okay.
Great.
And one of them.
Especially <unk> and <unk>.
Head start to happen.
The strips.
Dan.
That's helpful.
Speaker 4: Trust me when I say that there could be some differences. So maybe not.
Hum.
That will change.
Maybe not.
Hey, Jim.
Speaker 4: that we're working on not having to finish the clinical trial, but to have a
Hang on.
Chavez.
Speaker 4: I'll be out there in schools, at our plants, in the company, and we'll be able to cover this.
Oh, yes.
Yes.
Would you be able to.
It is nice to work towards over.
Speaker 4: I will try to be very conservative here, and I will try to keep what we mentioned in the report. Thank you.
Very conservative.
Right.
What we mentioned with the Jug water Park.
Speaker 6: Because the only part of it is trying to put the crisis into two weeks. And I don't have a response to that side, because it's a plan that doesn't allow us to have a safe.
Oh.
Other credits into Chipotle.
Oh I'm sorry.
Yes.
That allow us a mistake.
Speaker 2: We can only get it right. So that's why we're in one market place. OK. Let's move to your second question. We'll talk about Benape later. We understand there's a lot of opportunities to grow. We know how to do things well. We provide credit to people, and it's not very normal. As we see credit, there's just a difference.
No I get it right.
Walmart.
To your second question, which I forgot manipulated windows, there's a lot of changes.
Now one of the things.
We provide this restaurant.
Not very normal.
Okay.
Being able to control.
There's always a fee.
Great. Thanks, a lot.
Thank you Candice.
Yes.
Although we have.
But I just thought with the logic nominating you'll get it over with.
A lot of loyalty.
So this job.
This is Ben.
Okay.
Yes.
Why can't refuse.
First of all we want to grow Marine Lupus forgive me I was looking at.
Thank you.
And if you could also go with your product might have anywhere in the auction.
Oh.
He episodes.
All of that but it's a good business a question is always high.
Okay. Thank you.
Perfect. Thanks.
Another question is from Andrew.
Okay. Thanks, very much for the question I'm curious about the e-commerce behavior around the stores you've closed any effect a tad on G. M V and based on this if it changes your view about what the right store count more or less it could be longer term.
And second just quickly on three P take rate.
To move out in the quarter. So curious your view on how much room. There is to increase take rates from here. Thank you.
Thank you Andrew.
Our big outdoor Andrew.
Translation.
She was a tablet.
Hello.
<unk> between one <unk> related.
The store name a clinic, so I don't see a connection.
Gains from beef being lumpy related to the closing of stores.
Storage is something that's very wide.
Importantly, though.
Jim.
And what are the price increases.
That's kind of offset that with us.
So we don't migrate.
So we can make it.
Yes.
Jason.
John.
The overall margin.
Sure.
Okay.
It helps us out in that deal.
One that we think.
Tony.
Carnival and there's a repetitive.
So the second question.
We understand there is an opportunity driven by seasonal anomaly negotiation in English and in particular.
But I was just wondering.
Yeah.
Thank you Jay.
The Cobra.
In Armenia charged yourself.
Yeah.
And it's more with just a moment.
Great.
Our services.
Adrian.
Okay.
And as John read aloud.
Okay.
So do I.
And it does allow for growth.
With margins for testing facility for us.
Uh huh.
Yeah.
Erected.
The fact that the revenues for.
That means.
Good morning.
Sure.
That means a little.
That might be trying too much risk for me John So we know.
Oh.
In migraine.
Two P M.
And people are that makes sense.
The Max.
Yes.
And so some of them.
Emissions at or above.
She is asking.
Oh.
And how you think it is reasonable.
I could have.
Great.
Thank you all for good or bad you My video.
And in that part of a structured upfront maybe you should.
Like a material change in that.
Of the company Okay. Thank you very much Andrew.
So, perhaps I'm a bit of money to buy shares.
Do you keep a center.
One is from Eric <unk>. Please.
Please you May proceed.
Hey, guys. Good afternoon, and thanks for taking my questions on my side.
I want to look at three <unk>.
As long as it's a bit more on the merch strategy amortization.
Hmm.
When it comes to the salary starts you Wanna Chorizo.
Hum.
I was there myself that I'm seeing a dynamic.
Sure.
Salaries and color fellas.
Yeah.
If you were to continue to differentiate yourself with.
The higher kit.
And then to bring in the film visit salaries up to enjoy some version of the sellers in this bathroom.
Versus your offer.
Great question, Eric and our vision.
Already have their money.
So we have a little bit is in lifestyle.
We understand that.
And.
An improvement in the conversion, even if you work with.
We're disciplined.
The amount of sellers in the amount of Walgreens do you have the same items.
Yes.
Only the best offering is better than having all of them.
When you look at the level of service, especially.
We're not gonna rich.
Sure.
The generic cost because you have to be.
Hey, Austin.
Several operational mistakes there when you go back to generally you have to invest law.
Just any problem.
You just <unk> and.
And have to solve that so that's not their appetite.
Matthew Petersburg concentrated and high quality.
And of course organically and not with <unk> investments.
The investments of the car.
In fact, <unk> estimates, we don't really know at two P. M.
When they go and then research and one of my refrigerator.
Do you see and <unk>.
This model the refrigerator.
Automatically the electrical incentive fee.
And then I'm gonna be.
Delivering a.
Three P M.
Got it.
Yes.
And moving to Pennsylvania.
As well as.
It is.
There's a lot of furniture and and it makes sense to have J P. <unk> P kind of makes it a lot.
When you have a patient.
Capital any of the traditional margin tradeoff Caprica logistics all of it or is it better to do.
No.
Alright.
There's a lot more I can category based and our forecasts.
Core categories than one 3% JV.
Mr. Gao.
A machine you have.
Gosh.
And we optimize the physical storage assumptions.
Dennis.
Yeah Joe.
It's performed and change up to maximize performance and that's why we shrunk our strength so.
Sure.
Yes.
Hum.
Yes.
Oh.
We've been performing.
And if possible it is to continue to evolve a lot.
People as possible.
Okay. Thank you perfect channel they might okay. Mike you have no other actions now as long as of late from Andrew that maybe you could.
Finish answering which is about 80 store network in a long term.
Zinc.
And then you can have like Simon and launch okay. Thank you.
That's terrific. Thank you.
And it's just better.
Long term we expect.
No.
We ensure that the market over time.
It took a little greater than the online.
So I'll be quite alloys.
Again, it's got to work our stores and amusement market share.
Mike as you look at them.
John Martin.
Yes.
Yeah.
Southeast.
There's a lot more than I described refer you got the opportunity for market share.
And now your market share.
Midwest region, North and North East.
Any big.
Hey, rich.
Hum.
Looking at our last slide.
We still got an opportunity to open up a lot of physical stores, we have 200.
Well it should have a couple of days.
And this now because we're only getting started expansion once our cash flow.
Qiagen.
<unk> generating cash.
And as traditional cash they can invest.
Oh gosh.
Yes.
<unk>.
Any change from when we started expanding.
Not sure, hoping Mac or transformation.
And then just kind of question.
It's a bit of a base scenario.
They expand.
Yeah.
The company should grow a little more on that.
One line.
Okay.
And where are those.
C N.
We're preparing your plan for the long term.
And this is already in a discussion we have.
Okay.
Yes.
No.
Yeah.
So in the short term.
Sure.
Thank you.
Yeah, because you really want to thank you.
Okay.
And transportation of our cash flows.
Sure Dan to the second quarter.
Lora, which it hasn't.
And the company.
Some of the levers, we see well to maximize value.
To allow us to reach our ambition of being a preference and drawings.
And you catch the Chinese market, we are aware of it.
My reference so you must have a robust right.
S Cashen Angel and grafts.
We're not.
And the third we are just machine the third element, which are little more towards <unk>.
My first one was going to ask Jeremy our transformation of the company's cash flow and we're already experiencing et cetera.
Once again I want to thank you all for your participation.
We have not seen the videos and all the material I'd invite you all to what it's been equal hole and.
The information and of course, our IR team is available afterwards.
Two.
Well thank you all.
Okay.
That's correct.
Yes, I won't give a critical conditions.
A lot okay too.
Yeah.
Yeah.