[TOTVS] 4Q24 - Earnings Videoconference

morning and welcome to the fourth quarter and 2024 results video conference I'm Serio siio head of ir and I am pleased to be here today not only with Dennis but with all the companies we peace as always we'll present the main highlights of the last quarter and the year and at the end we'll open the floor for questions and answers with the participation of all Executives should you wish to ask a question just click on the raise your hand button at the bottom of the zoom platform or if you prefer send your question in writing

using the Q&A button and subsequently the IR team will respond to it before we proceed we would like to clarify that ejections and expectations presented in the video conference for totto future performance are based on current beliefs and assumptions as well as on the information currently available at this time several factors can impact the company's results leading to significant changes regarding the expectations presented here I will now give the floor to um Dennis well good morning and before anything I'd like to wish you a healthy and successful 2025 and also thank you for a fantastic

2024 for totus company has continued its history of pioneering Innovation and boldness which combined with a resilient business model and execution discipline allowed it to navigate the most diverse political and technolog iCal changes with these always coming out better that it went in in this scenario of new changes this is exactly the behavior we are looking for a unique capacity for reinvention turning risks into opportunities the ability to know what's going on around us but always looking for our own angle without fearing adaptation taking unusual path course controlling our own destiny in other words being

the same while always being different in my message I focused on two important messages that the fourth quarter represented a definitive turning point in totus profitability scenario as well as in all of the business units and secondly that 2024 was confirmation that the addressable market for management long way from maturity as Gustavo and Marcelo will demonstrate Through The Bu management at the end I will be back to speak further about this message Point number one is shown in the graphs on slide three the sequential acceleration of Revenue in the fourth quarter to 18% particularly recurring

Revenue came with significant margin gains as Eid du grw 37% year on year Well above the growth of Revenue adjusted profit grew 42% which is more than ID and the free cash flow grew 75% much higher than the adjusted profit throughout this video conference we will show you that the same has happened in all of our business units we are accelerating simultaneously in all of our Avenues and this is is a result of a combination of tragedy and execution now I'll hand the floor to Gustavo bastos who will comment on the results of the management

business on slide number four I'll be back for my final message Gustavo the floor is yours well good morning everyone management bu results contined to show strong growth we organically added 172 million of RR in the fourth quarter and more than 600 million in the year which is to say that we added more from recurrence than most of our competitors earned in total revenue in the year this level of ARR addition combined with a retention rate of almost 99% resulted in 21% growth in recurrent Revenue reaching 1.1 billion hi in the quarter with a highlight

for SAS and Cloud growing 32% over the fourth quarter 23 as in the previous quarter the strong growth in Revenue was accompanied by an increase in profitability eida grew 26% in the fourth quarter and margin was 102 base points above the same period in 23 now the advance in the integration of recent acquisitions and the conversion of igpm to the ipca are factors that should continue to contribute to profitability going forward especially when considering that recurring Revenue represents 89% of the total revenue of the management bu which ended the year practically with 5 billion in

ARR I'll now hand over the presentation to Marcela to speak more about the growth potential for management well thank you Gustavo and good morning everyone throughout its history totas has build a business model that we showed you on slide three that combines three main factors in a unique way that is very difficult to replicate first Brazil software Market especially for smbs which is still poorly digitized with Investments per employee more than 10 times lower than in oec countries it has grown two times more than Brazil's GDP in the last 10 years we don't see this

pace of market growth changing in the coming years and so with the arrival of new technologies such as Cloud Ai and others this will continue second is the increase in our relevance to our clients because of our broad portfolio that continues to develop both organically and through m&a and part ships we are in 12 segments of the economy and with different levels of technological maturity this diversification grants our client base a strong and differentiated resilience helping us to get through times of Greater Market volatility and exploit opportunities and the third is our coverage through a

distribution and delivery model that puts us close to the customers throughout the country being a sales machine that continues to expand and we're working close to Owned units and franchises especially in SMB these characteristics mean the ability to attract new customers and exploit a powerful cross sell and upsell potential in 2023 we got to 100% in 2024 to 33% this is a formula for 23 consecutive quarter of double digit growth and I now hand the floor over to aad who will speak about the Rd station now before speaking about the results what was called business

performance has now become Rd station this is due to a particular advances in portfolio integration distribution and brand awareness Rd station continued to demonstrate the power of this Buu unit economies we achieved the highest quarterly EIT margin recorded by Rd to give you an idea the fourth quarter Eid loan was higher than the entire year of 23 the integration process of the newly acquired companies and scalability will show margin gains over time this quarter we saw good recovery in the sales but the retention rate was lower Visa the average of recent quarters the retention rate

will recover on the left of side seven we have RDP Forest acquisition by total a monochannel operation with inbound sales and support of the ecosystem now when we think about the present and future we have a business unit that is and will continue to move forward we are multi- Channel we have a sales machine we have multi products we have several Acquisitions and Partnerships and a broad management portfolio and we're just imagining what we can do together in terms of integration and we are bringing ever larger customers now this journey of integrated work will be

an additional engine for growth for the customers in coming months now the stickiness with our customers is good we work with customers that are ever more Diversified and increasingly larger in terms of icps I give the floor to Maya good morning everybody a credit production grew 19% in the year and 7% quarter on quarter surpassing 11.7 billion for 2024 spite an adverse scenario in agry business this performance was driven by progress in other sectors of the economy contributing to Greater portfolio diversification and consequently to the dilution of Agri business share of total credit production as

a result of this production performance net revenue from funding grew 32% Visa the fourth quarter 23 and 23% over the third quarter this year this advance in Revenue along with delinquencies that are historically below average market levels and operating leverage led epida to end the quarter at 24.3 million representing uh threefold the EPA of the third quarter and 11 times that of the fourth quarter 23 so a little over a a little uh over a year after the formal start of the joint venture we see this upward inflection point uh in that J curve that

we had mentioned at the beginning uh profitability curve that continues to advance in integration the supplier and pcin operations allowing for greater fluidity and gains in operational efficiency in Investments to build the first Erp banking in Brazil I will now turn the presentation over to Vivian who will speak about people and highlights for 2024 on the next slide will thank you Maya good day to all of you in 2024 we remain committed to the sustainable development of business and economy sustainability for us means resilience efficiency ethics and responsible growth by making totas a sustainable company

and encouraging its system to follow suit we guarantee the longevity of the companies we serve and contribute in a more structured and balanced Market in this sense we made progress in several fields in ethical and responsible governance fit reaffirmed oura plus rating revising the Outlook to positive in addition we remain in the leadership quadrant in risk and opportunities at msci with an AA score and we have maintained our ISS classification at the lowest risk level in people for the fifth time in a row we were recognized as one of the best companies to work for

for the great place to work in the 18th ranking among large companies and once again we are part of the B3 ipt wb3 indices in reputation and image we are among the 150 most Innovative companies in Bor noas award and we remain among the 50 most valuable brands in Brazil uh according to caner Brand finally I would like to highlight social opportunity Institute which continues to be a great Ally and training future talent for the technology Market throughout the years the Institute has trained more than 47,000 young people in situations of socioeconomic vulnerability in recognition

for our dedication iOS was among the best 200 social organizations of the SE do ranking I would like to return the floor to Dennis for his final comment in the beginning of the conference I focused on the quarter's results and now I will talk about a longer view since the developments are not oneof they can also be observed when we look at the last 3 years as shown in the graphs on the slide the sequential acceleration of Revenue to 177% in 24 was followed by excellent gains in profitability as ETA grew by 18% adjusted profit

by 20% and free cash flow by 35% also the left graph shows that in 24 our new levers represented by SAS gist Rd in TCT fin were responsible for 78% of tot's growth compared to 59% in 22 this is another clear demonstration of my point that we have a huge addressable Market that is far from aure in all our business units I would like to wrap up by returning to the second message in my release when the cloud emerged along with SAS a frequent assessment was that they would increase the power of disruption as they

reduced the cost of new entry for new competitors this indeed happened in software Market in corporate software markets however specifically in management software this did not happen the reason is simple the functional dimension of Erp is very difficult for new entrance to replicate and it has greater relevance than the technological and Architectural Dimension where the cloud and the Sass billing model fit in this simple question has led to a lack of understanding on the impact of the cloud on tata's business and that of its competitors in practice the cloud represented yet another gigantic increase in

addressable Market which is still along way from being fully captured by Erp providers the traditional concepts of market share and Market penetration were originally created for Consumer packaged Goods where the addressable Market hardly changes over time as I've said toothpaste has remained essentially the same product for the last 100 years this is not the case with management software over the past few years all the changes in company's business scenarios have been directly reflected in an increase in the functional scope of Erp which means an automatic increase in the addressable market and the arrival of the

cloud has represented the biggest change in short to was able to capture for itself the customers take rate on the entire environment in which their applications run these costs are in most cases greater than the cost of the application itself this has happened over the past decade it and is far from being done it is therefore wrong to consider total's market share as well as the high percentage of companies using management software as synonymous with a penetrated Market the Practical conclusion is exactly the opposite as the addressable Market grows rapidly total's market share means a

huge competitive Advantage now I turn over to Sergio to start the Q&A session well thank you very much and I would just like to remind you about the instructions given on the beginning of the conference to ask a Live question keep your hand raised press the button at the bottom of zoom and I will announce the name and release the audio so to start the session we will start with UBS and Leos alos the floor is yours hello everyone good morning congratulations for the results it's really nice to see everyone on the table my first

question is more about sales and management what Dennis mentioned in the letter and now is very interesting could you please talk a little bit about sales by volume new sales we culated more or less that there was a decrease year over year in the fourth quarter could you please comment what you expect in sales and growth according to volume figures and since avar is participating in the call uh the go to market discussion was very nice I'm curious to know why the name went back to Rd breakdown and I would like you to talk a

little bit about the breakdown today by clients according to their size and also how you see this breakdown in the future I wanted to better understand the of these clients with management since we are discussing cross Cale among the two between the two units well thank you L thank you for your comments I will start and then discussion about our volume in the fourth quarter the fourth quarter was very strong in sales we did really well throughout the year this makes us confident for 2025 I believe we have all of the elements in place for

us to have another important year not only in terms of volume but volume as well our portfolio continues growing our work to reduce the cost of property in TCO is is still very effective which enables us to achieve new clients our sales platform has an amazing coverage this week for example we inaugurated a new office in so Rio prto a wonderful office really amazing for you to have an idea I gave 12 interview to all of the media in the region this makes a lot of difference in terms of sales for new clients and retention

of new cents one day you might be able to participate in such an inauguration this is something that we can consider for the future and you will have an idea of the impact this gives our ecosystem and how this affects different regions in the country and now if you want to add anything about sales good morning thank you for your question we believe that there's room for us to grow the market is greater than what we can pricey we still have a lot of cloud available in the Brazilian Market as we expand our capacity to

meet the needs of the different regions this is ongoing and we can move on for a while regarding the questions about Rd in business performance of all of the products and then having rd's brand inside generated some confusion with our client base because Rd is such a strong brand we thought it would be simpler for us not to communicate two things just to do something for Rd station Acquisitions for Rd which is something different when we look at management because the products are very integrated to extract value we brought the product insides and we now

have a single product suite for R&D so Rd station is the single brand for the whole umbrella makes it very easy for us to communicate with client regard your second question I can't talk about share but I can tell you that uh in the past years Rd has had more advanced versions of its own products for example RCM marketing all have evolved over time and these are the ones that have the best performance they share grow over time in rg's normal client Journey they usually go through the entry level with lower or less expensive plans

and then they evolve to more advanced plants but uh in this case clients are better prepared possibly because of the sales process or maybe because of the size of the client so they already start with a better plan and that contributes for a better performance as we become multiproduct for them to extract value they must be with they must have more advanced plans with that our average ticket is increasingly higher really nice thank you very much and this Inauguration in s we actually wrote about it in Daily this week we would like to be invited

let us know next time well thank you L the next question is by Capi CL your audio is openo your audio is open well thank you very much I have two questions the first one in a followup of Leo's question and perhaps um a little bit higher level we had changes with Avala taking on our D station I would like to know how the strategy changes and how the transition is going to be you please talk to us a little bit about it and the second question is about tech fin which was the main surprise

at least from our point of view this growth in credit production and also the question we ask is uh about the sustainability which is at very different levels when compared to previous quarters and I would like to have your input about this well thank you Thiago I wish you a good day as well once again I will start talking about the first strategy and then AV if needed can compliment this change is absolutely natural r d in totos is like different Gears of an automobile you start with a lower one and you accelerate and change

the gear throughout the process and this change is just another gear which means we're moving we're advancing and from day on this was made clear con convergence is what we you're looking at we want to be the opposite of a holding we are developing a single product Journey with offers to our clients because we see the value in integration and conversion the role we want to play the strategy we're following to ex expand our relevance for our clients this is something that can only be achieved by means of convergence other would like to add anything

well in my previous role I was already in charge of this a good part of what we had already considered in terms of convergence so and we talked a lot about subscription so um it is like Dennis mentioned it's a continuation of work that was already being done and last year with this synergism with the totus and now um I'm playing both roles well regarding techfin yes we see it as something absolutely sustainable once again from the very beginning we clearly mentioned that the creation of JV would have this J curve from a point of

view of profitability and in addition to this curve Tech especially in terms of credit has a bit more to do with transaction it fluctuates a little bit more when we compare it to the management business or the R&D business which in the past couple of years fortun or unfortunately did in fact fluctuate a bit but looking ahead in the longer term and for 25 we are very confident that this is absolutely sustainable perhaps uh mentioned what I had remarked upon before that Rd has had very good performance and the Agri business did have a favorable

year which shows that the operation has had a very good performance and that this situation will end up becoming normalized through our operation throughout the year thank you very much for your answers well thank you uho for your questions next question Marcelo Santos from JP Morgan uh Marcelo your audio has been unmuted well good morning everybody Denise Maya everybody sitting around the table my first question refers to the profitability of the Rd station we're facing a new level of profitability in the company and perhaps this should be considered the base for future periods my second

question if you could speak more about the Rd retention rate what has led to it and which are the assets and the company that you would have to improve or if this is simply a macro issue and you're working as usual well Marcelo let's begin with profitability and the margin of Rd station this is the second quarter where the margin has been double digit even in a fourth quarter I would like to remind you that is normally more chastised in terms of price and naturally of of course this has a significant weight on the cost

and changes in the fourth quarter now despite that event we have a twod digigit margin which shows that of course this is a very Sound business on the other hand I trly don't want you to uh have a fixed expectation that the unit will be delivering two digit margins going forward this isn't sound because of the profile do recall that Rd station is in a market is a newer product it is under construction we have all been able to capture several of the opportunities of course and of course it is more than natural that because

we're capturing these development weaves in the market we will have a speed up perhaps and this could of course compromise the margins that we will be able to deliver in the short term now from the structural Viewpoint is looking upon this operation as something that yes will change its profitability now to address the question on retention I would like to add to what I said at the beginning we have the ideal profile of clients that we have reached with Rd since it has become part of the company now as a mentioned they had a tradition

of working with mono products mono distribution of course it is natural that this will create a very high and structural retention rate as we diversify this to multiproduct offering more solutions to the clients we also enhance our capacity of working with much larger companies uh management clients of average sizes is facilitates our approach to those clients and we will tend to enhance the retention rate the permanence of the client which precisely that it's not something macro there's a great deal we can do to improve this uh we are not fully satisfied and this is not

business as usual we have to deal with some points here and the solution the stry that has been set forth is to differentiate ourselves more in the product that we're offering and also in terms of value integrated with the management portfolio with Rd station gaining relevance in this process were working to enhance this indicator during the coming months it's also important Marcelo to recall if you uh think about that institutional slide that we have where we reinforce the different characteristics among the units in Rd we working with a discretionary budget that is more volatile so

the client can Cass more or less of course everything is linked to marketing and sales and at certain point in time the company believ that if it invests more in sales it can change the situation and enhance the Investments but once again that budget is predominantly discretionary and it's a characteristic we're working with and it's possible that we will not have the retention level that we have in management perhaps on the other hand I would say that there's lsic when it comes to increasing the budget for it for the administrative areas the reaction tends to

be slower because of the Market Behavior but it does bring us a higher and more foreseeable retention R because of its characteristics as abar says this does not mean we're fully satisfied we're trying to work as closely as we can to that retention rate making it as similar as possible to what we have in management but these are different market profiles of course and different solutions thank you for the answers if I could uh gain a better understanding of the following there's an increase perhaps of bur Visa the other period it's because cily you're seeking

gains in your retention rate which is truly amazing but specifically at this point in time there is a certain decrease in retention this movement about our companies beginning to think they shouldn't invest more in marketing to have a better return or is it due to the changes well uh vad mentioned this in his presentation this has nothing to do with the Market Per Se it's something that we control something that we have assessed which of course his assessment is not fully Pro the main factor is what we included in the release that Rd station has

undergone significant changes when you enter a new channel field sales or a new client profile AAR mentioned that Rd has a channel that they're very used to that they work magnificant with with client that come in at entry level and during their Discovery Journeys uh they gain uh more sophistication now in field sales our clients tended to be larger for a series of reasons and they come in with more advanced products uh usually now all of these are operating changes which are not minor changes of course and as Maya mentioned if you have a characteristic

that is somewhat more discretionary which is the case of the Rd product if you don't have customer success if you don't have the client onboarding process fully adjusted yes you will have oscillations in the retention rate this is something that is expected normal when you undergo these changes now the net balance of this change is positive incredibly positive promising significant growth and uh significant and sustainable gains and we have inaugurated completely new avenues as we mentioned in the release and as I underscore here I have no doubts whatsoever that as we progress and knowledge and

the capacity of working with this new challenge putting together new products integrating them into a frictionless journey I have no doubt whatsoever that this will G give us the capacity the skill to recover that retention rate and who knows as Maya mentioned get closer to the thank you that was very clear thank you thank you for the question Marcelo next question from vctor Tomita from Goldman sax your audio has been unmuted you may proceed well thank you for taking our questions we have two questions at R end one uh to think about management you spoke

about geographic location new units let's think about a long-term strategy how much more capillarity can totes have in terms of units in the hinterland of the country how far will you go how worthwhile are these expansions if you could give us your opinion on this and the second question is about the tech fin you had a very strong semester but you expand more on if you had other segments besides agre business or if there are other drivers for this positive performance and the techin work that you carrying out alongside with it thank you uh Victor

thank you for the question and a good day to you let's speak about capillarity this is a question we receive frequently from and this comes from different sources this process we initiated in 2019 it was a process to keep up competition we carried out a geographic design of Brazil and this enabled us to understand this expansion to the hinterland driven by the Agri business as by other uh businesses we have several cities we do have a specific goal uh based on geography for expansion and alongside this we worked with the Consol validation process of our

franchises to make them ever more sophisticated ensuring they will be able to inaugurate offices in new locations or expand the offices like the office of s Jose doto Marcelo and myself will be in simoi the coming week to inaugurate another office this is a Continuum a very positive process and it will continue it will not stop at this point because we follow up areas using that profile following up on clients for the expansion there are states in Brazil that are receiving heavy private investment and around these uh segments of course we have an enhancement of

economy so it's a process of revitalizing offices of inaugurating new offices and going to more remote locations while the logistic situation in Brazil is not easy to be close to the clients so this is a serious discussion when we speak about expansion it will not stop it will not come to a standstill as our software product portfolio is very broad we are able to capture the different Journeys in the industry we will have an audit by Agri business and the whole economic cycle and so uh this makes sense because we can capture the new regions

V Victor regarding Tech yes we had all of the other segments of the economy that contributed for Tech fin to do so well new clients new Affiliates were brought in new products were launched and so uh we closed the year with projects such as capital jitu long credit at levels that are very interesting with grow growth rates that are significant and so this uh end of the year was very very solid across the border in TCT fin which makes us confident that we it will have at least a very nice beginning of 25 in this

business unit anyhow for us it is absolutely essential to do what uh we have called Erp banking it's important that it takes off and um in terms of product and what we deliver as a joury journey I would say that uh it Advanced a lot throughout 24 very clear thank you very much next question from safio your audio is open can you hear us well thank you for taking my question this is a tech fin question so how do you see the dependence on every business diversifying your portfolio is it's going to be important for

you and another question I'd like to ask regarding kex what does how much actually does Toto uh allocate for the cloud and I know that uh it's unfair ask this question but we've seen companies overseas to increase their Investments significantly but for the company how much are you going to allocate in in terms of Financial investment to um AI well I will talk about it a little bit in the past year we've had something in the order of 20% and yes we do try to diversify 20% is a significant amount but uh there's not a

huge amount in the third and fourth quarters it is related to the Harvest Cycles by Tech F and so we have tried to diversify we've tried to expand our possibilities so that over time we're as close as possible to what we have for total we have the advantage of having a very good diversification of our client base and this makes our business more resilient and it's easier to anticipate what is going to happen it is recommendable that we do diversify not only of the companies but of the companies that work with us in techin to

view and regarding Ai and the cloud in general Investments and not only financial investments but also time and attention and care I would like to say that these systems have used a relevant part of our time all of those here on this table but not just us and so we've um evaluated the angles we're going to use the space that toos is going to use and we're definitely going to play a very important role we are moving fast so that we can have a clear view of what we want what we don't want and what

we're going to be and what we're not going to be in terms of AI but I have uh no concerns uh we know that uh there I am absolutely certain that the cloud is a very important enabler for AI in other words cloud is a business in itself and it has enabled so many other things but definitely in regards to AI cloud is essential and I don't know whether cloud and Marcelo would like to add anything here well I would like to comment that uh regarding numbers and kex I would like to remind you that

a lot of the topics of these agendas involve uh kex and Opex not just kex and so we have a significant part including people licensing of software and so on and so forth so that it's not limited to kex only of course a cloud plays a very important role we have the equipment the technical ass asss infrastructure and what is really interesting for us to take into account is that here at totos we always try to apply technology to something which will be made available to the business and the client you will always see us

discussing it more and more and we're going to embed these Technologies for the value proposal of each one of the projects the segments and the business unit rather than being a provider of Technology only so as we show you as Dennis commented that we're working hard to work with all of these Solutions you will see it clearer also in response to another part of the question of course it takes up a lot of time especially for those who are working closely with the project those here on the on the table myself of Marcelo spend significant

time dealing with these topics I would like to complement something here for those who were in Universal totos last year you will have seen how AI has taken sign significant time in the company so this is a relevant topic and has used a lot of time from all of us well thank you very much thank you s the question is from Bernardo than you for the opportunity I have two questions the first is a followup of the discussions on Tac Fin and perhaps on a macro scenario trying to understand your appetite B's data and the

results which have been reported by Banks Show a strong and resilient credit expansion with controlled uh default but we also have a very challenging scenario with high interest rates which will lead to higher default values later on within this context how do you see this and the appetite to accelerate this a little bit further and my question here is on Commerce I wanted an update trying to understand how your ecosystem is working do you think that you are accessing all different layers or do you see any other Niche that might be eventually explored by any

other partnership or m&a do you have any interesting solutions for you in this segment well good morning Bernardo thank you for your questions I will start with techin I would say that uh the appetite is good especially because we have a long-standing history of success in Risk Management we've been through many cycles and the results uh We've achieved we're always very solid in terms of default I would say that uh we are careful and paying attention as we always do but we are confident from day one when we started working with this business I clearly

stated that if we have to choose between growing and uh preserving this good track record we will always choose to preserve our track record but as we Advanced with a credit models based on RP data or by using different uh information that we had no access to in the past we will um use this differential it they prove to be best for us and once again I would say that the level of confidence is good right now but of course we're always careful we always pay attention and uh our priority is to guarantee that we

will have no surprises in terms of losses I will start with the end of your question and avar will complement [Music] it we do not have any comments on links right now basically everything we have to say today we've been saying by means of our releases or relevant facts and therefore there's nothing to add here about eventual m&as we are always very attentive to everything but it doesn't necessarily mean that this will solve our lives totally we're very happy which they are wonderful partner world class you know them really well but we always keep our

eye open this is true for Ecommerce and anything else a a l if you want to complement anything well um we have expectations with a shop time uh partnership we've had this uh expectation from day one weing B2B and Shop we're doing really well indeed really well so the demand is there and this is a business that uh grows at amazing rate a if I'm not mistaken and perhaps you can confirm it but the main shop five plus clients for example which is a more advanced shop by solution they came through our partnership yes this

partnership in Brazil represents the largest part for the largest share for shop five we have an additional percentage from Shopify plus a very relevant percentage which means the client comes in beginning with Shopify Plus without being a client from RD and then we work with crossfell we' had truly impressive levels of new clients in the Ecommerce portfolio and uh in the purchase of management product very clear thank you Denise a and congrat tions for your year results thank you Bernardo to end the question and answer session I return the floor to Denny thank you Serio

for 2025 we foresee the significant challenges that Brazil sees coming up but we consider them as great opportunities for the technology market and of course for Chas our strategy meeting that we held at the beginning of the year had as a moto a single destination with multiple opportunities it is with our clients and our people that we open up the year we have a team that is very clear about what they are going to do and what we deliver 25% of Brazilian GDP goes through our systems recall this we guarantee teach the clients that if

we don't grow and evolve their clients this is our motivation once again thank you so much for participating we hope to see you in the next quarter and thank the team for participating once again