LATAM Airlines Group SA (LTM) 2012 Q1 法說會逐字稿

Good morning, my name is Lynn, and I will be your conference operator today. At this time I would like to welcome everyone to the LAN Airlines Q1 2012 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. (Operator Instructions).

I would now like to turn the call over to Mr. Pete Majeski of i-advize Corporate Communications. Sir, you may begin.

Lynn, this is Pete Majeski from i-advize. Is the call open?

Hold on one moment. Yes, it is. Good morning. My name is Lynn and I will be your conference operator today. At this time, I would like to welcome everyone to the LAN Airlines Q1 2012 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. (Operator Instructions). Thank you.

I would now like to turn the call over to Mr. Pete Majeski of i-advize Corporate Communications. Please go ahead, sir.

Thank you, Lynn. Good morning, everyone. Welcome to LAN Airlines first quarter 2012 conference call on this, the 14th of May 2012. Today, LAN Airlines management will discuss their earnings release per their press release distributed yesterday evening.

This call is for investors and analysts only. If you're a member of the media, we request that you refrain from asking questions and contact LAN Airlines directly.

If you have any difficulty during this call or have any questions, please contact i-advize in New York at 212-406-3693.

Please note that certain statements regarding the Company's business outlook and anticipated financial results constitute forward-looking statements. These expectations are highly dependent on the economy, the airline industry, international markets and therefore are subject to change.

And at this time, it's my pleasure to turn the call over to Mr. Alejandro de la Fuente, LAN's Chief Financial Officer for his presentation. Mr. de la Fuente, please begin.

Thank you, Pete. This is Alejandro de la Fuente, Chief Financial Officer of LAN. With me here in Santiago are Luis Eduardo Riquelme from our Passenger division; Alvaro Carril from our Cargo business; Andres del Valle from our Corporate Finance Department and Gisela Escobar, our Investor Relations Officer. In addition this quarter, we are joined by Hernan Pasman, CEO of LAN Colombia, who will be able to give you additional insights as to the development and operations of LAN Colombia.

We hope that you have all been able to access the webcast presentation that is available on our website for a better understanding of our results for the first quarter 2012.

Okay. On slide 3, you can see the main highlights of the LAN's results for the first quarter. LAN reported net income of $76 million, 22% decrease compared to the first quarter 2011. Operating margin reached 7.2%. The decline as compared to last year is due to 15% higher fuel prices only a part of which were recovered through higher yields.

The difficult environment in the Cargo business reflected in weaker traffic growth, continued investment in the development of the operation of LAN Colombia, and finally the one-time charge of $14.3 million resulting from the successful completion of the collective bargaining process of two unions during the quarter. Nevertheless, passenger demand remained strong in most markets providing the basis for a 16% increase in passenger revenue. This allow us to offset part of this negative impact.

Turning to slide 4, you can see (inaudible) in our operating margin for the first quarter 2012. Fuel prices increased 14.7% compared to first quarter 2011 generating $65 million in higher fuel costs excluding the impact of fuel hedging gains. That impact was partially recovered through increased revenue per ATK mainly due to higher yield in both passenger and cargo operations and higher passenger load factors. Passenger yield increased 2.2%, and cargo yield increased 4.7%.

Margins were also impacted by the one-time charge related to the union negotiation as well as by continued operating losses at LAN Colombia as we advance in building up our domestic passenger operations in that track. Finally, LAN continues to recognize ongoing expenses related to the merger with TAM, which amounted to $2.1 million during the first quarter.

Taking a closer look at passenger operations on slide 5, you can see in detail the evolution of the business during the quarter. We continue to experience very solid traffic trends in most markets. Traffic grew 14% while capacity increased 11.3%. Consequently load factors reached 82.9% which is a record even considering the high season. Yields continued to increase driven by higher fuel surcharges showing an increase of 2.2% over the first quarter 2011.

LAN continues to expand passenger capacity throughout its network. As you can see on slide 6, passenger capacity expansion this quarter was driven by regional routes within South America. Growth in the regional business as a result of the continuous strength on LAN (inaudible) as well as commercial activities focused on stimulating demand for travel within South America.

Regarding our domestic operations, routes within Chile continue to be a growth driver as well as Colombian domestic operations while capacity increased by over 20%. This expansion was partially offset by decreased capacity on long haul routes to Europe as a result of itinerary changes implemented in 2011, mainly the cancellation of the Madrid and Paris routes in July 2011.

Overall LAN's passenger capacity expansions remain highly diversified which provide us with significant flexibility to adjust capacity deployment, due to the demand conditions in different markets.

Please turn to slide 7 for an overview of LAN's cargo operation. The Cargo business is facing a more challenging environment reflecting the situation in global cargo market since mid-2011. LAN's cargo traffic increased 1.5% during the first quarter, whilst capacity rose 2.3%. This led to a 67.4% load factor, slightly lower than 2011. We have not taken delivery of any new freighter aircraft since January 2011.

In addition capacity is also impacted by decreased availability in the belly of passenger aircrafts due to a very high passenger load factor. On the other hand, the low increase in traffic during the quarter corresponds to weaker cargo demand in the region, increased competition in routes into Latin America as well as new regulations in Argentina that reduced imports during February 2012, which was partially offset by growing Chilean export market.

LAN Cargo continues to focus on profitable growth and to strengthen our market position in the region. Cargo yield increased 4.7% during the quarter as a result of higher fuel surcharges, improved revenue management practices and optimization of itinerary.

On slide 8 you can see in detail LAN's cost for the full quarter. Total expenses increased 17.7%. On a per unit basis, cost per ATK increased 11.9%. Excluding fuel, cost per ATK grew 8.4%. The main cost increases were related to 15% higher fuel cost and a decrease in the fuel hedge gain from $22 million to $14 million.

The $14.3 million charges in wages and benefits is due to the completion of the collecting adjoining process with LAN's pilot and administrative unions and consolidation of LAN Columbia operation. Fuel cost for the quarter increased 27% mainly driven by $14.7 increase in price and 7.4% increase in consumption. In addition, LAN recognized a $13.6 million fuel efficiency gain compared to $21.9 million fuel efficiency gain in the first quarter of 2011.

On slide 9, you can our fuel hedge position for the upcoming quarters. Our financial hedging strategy in addition to our fuel surcharge policy applied on both passenger and cargo operations, which allow us to recover a significant percentage of higher fuel cost. As you can see on the slide, we have hedged approximately 50% of the estimated fuel consumption for the next for the next three quarters of 2012 and approximately 5% of the estimated fuel consumption for the first quarter of 2013. We have continued increasing our hedge position and are in the process of hedging an additional 10% of our estimated fuel consumption for the third and fourth quarters of 2012 and an additional 5% for first quarter 2013. At current prices, out total hedge position is generating gains for the coming quarters.

On slide 10, you can see our net fleet deliveries for the coming years. During 2012, LAN expects to receive 12 airbus A320 family aircraft to operate domestic and regional routes as well as nine Boeing 737-300s. We will also take delivery of the first Boeing 787 Dreamliners becoming one of the first airlines in the world to operate the smaller and efficient aircraft.

During 2012 the Company's fleet plan also includes the sale of five airbus A318 and the return of two leased Boeing 767-300 while also returning three of the Boeing's 737-700s operated by LAN Columbia. Regarding the cargo fleet during the second half of 2012, the Company expects delivery of two Boeing's 777 freighters second half of the year although we continue to have confidence in the significant growth opportunities in domestic and international markets in Latin America.

Please turn to slide 11 to see our estimates for ASK and ATK role for 2012. In our passenger operations, we expect capacity growth of between 12% and 14% driven by a net increase of 13 passenger aircraft in our fleet including the first two Boeing 787. On the cargo side, we have revised our target for cargo capacity growth in 2012 from 7% to 9% to between 3% and 5% as a result of a more challenging demand and competitive environment in the global cargo market.

By this we expect to continue showing healthy and profitable growth for 2012 and the coming years and to maintain high margins relative to our industry peers. We continue to see robust demand in passenger operations and significant growth opportunities in both passenger and cargo markets throughout Latin America. LAN is well-positioned to benefit from expansion opportunities in the market which operates while maintaining our flexible and diversified business model and a strong financial position.

Finally, I would like to give you an update on the merge with TAM. Please turn to slide 12. LAN and TAM have successful advanced in meeting all the requirements for the completion of the merge. On May 7, 2012, the Brazilian CVM granted consolidation for the very situation of the LANs CBR program, which was assigned the bigger symbol LATAM 11. On the same day, the CBM and the west granted optimization for the registration of the exchange offer in the field. On May 9, 2012, the FEC declared effective registration statement on form F4 relating to the exchange offer and combination clearing the way for the exchange offer to commence in the United States.

Finally, on May 10th 2012, LAN commenced the exchange offer for TAM shares simultaneously in Brazil and in the United States. The exchange offer is currently scheduled to remain open until June 11, 2012, and auction would be held on April or June 12 2012. Once the transaction is completed, LATAM Airline Group will become the largest airline group in the region and one of the largest in the world.

We currently expect to combine synergies arising from the proposed combination to increase LATAM earnings group, our annual operating income over time by between $600 and $700 million before the precision on taxes which came in four years after completion of the transaction of the total expected annual pre-tax synergies between $170 million and $200 million may be achieved within the first year after completion of the transaction.

We estimate one-time merger cost of $170 to $200 million. We also expect to benefit over time from $150 million in reduced investments instead of (inaudible). During the last month, LAN and TAM together with our consultants have been working in the integration planning although continue to be two separate companies and are unable to share strategic and confidential information.

Prior to day one, we plan to have -- coordinated the process and information distance that we allow us to join information and report as one single company once the merge occurs. After day one, we will start working on the integration of the business unit as well as the cultural integration of both companies. Our objective is to start as quickly as possible to generate these tax synergies. We are still confident with the current $600 to %700 million, synergy has an effect. Now, we will be pleased to answer your questions.

(Operator instruction). Richa Talwar, Deutsche Bank.

Just a few questions from my side. First, can you just flush out some more detail on what's going on with your Columbian operation? You already stated that you are seeing additional cost pressures there and I am hoping you can may be update us on the status and when we might start to see that business turnaround or is that contributing to the bottom line?

Well, we have partners, a few in LAN Columbia that explain to you the future development in LAN Columbia.

Hi, everyone out there. My name is Hernan Pasman, I'm the CEO of LAN Columbia and thanks for having me here today. Well, if we turnaround, we could see that in Columbia the operational turnaround is almost down and we believe due to get to LAN standards in terms of service, in terms of one-time performance. As an example, we got the Company from 45% on-time performance to 80% today and which certified the offset during last year. So we are on LAN standards in terms of safety standards as well.

Financially, it's taking a little longer than we expected to turnaround the Company. We are expecting -- initially we thought that we were able or that we might have been able to turnaround the Company during this year. And it is going to take a little longer than expected and it's due to because we are investing, we're still investing in the Company and in the operations and we think we might be able to turn around the Company by '13.

Okay. So this year should be expect like a breakeven or maybe more of a loss from that operation?

Well, this year it's going to be -- this year, I think, it's going to be more of a loss. I mean, we think the business is going to turn around by the second semester. Well, then if we are close to breakeven, our expectation is to be close to breakeven from the third quarter and be profitable on the fourth quarter. But that's not going to get it throughout the year.

Okay. Is there a number where you could quantify how much money they lost this past quarter?

We can talk about the investments if you want. I mean we did invest in this Company for a while. We expect that the invest in this Company around EUR140 million, including all these losses that we had last year and this year. And it was multi -- the initial investment was around $125 million. And while thinking -- basically, we think that the loss for the first quarter is going to be around EUR25 million.

Okay. That's helpful. Thank you so much. Secondly, just on dividends. We noticed that you had a 50% dividend payout ratio for 2011 and that just seemed a bit the high side. I believe you are required to payout at least 30% of distributable net income and I was hoping if you could walk us through why it was relatively high this year?

No, this year, no, we would pay dividends in January according to 2011 results. And then we completed that payout to be 50% based 2011 results. But going forward, we don't have any clear policy. It's just that we are obliged minimum by law to distribute 30% of the previous year's net income. So that's bottom line.

Okay.

So going forward we don't give any guidance on dividend payments.

Also the 50% for 2011 is in line with what we have paid in the previous year. Our dividend policy since 2007, 2006 has been between 50% and 70%.

2006-2007, right.

Okay. All right, thank you guys. Okay. I will let other people ask questions now. Thank you so much.

[Eduardo], Goldman Sachs.

The first one is regarding the cargo business. You know we saw, I would say, a softened first quarter in terms of cargo demand and the April numbers that were released a couple of weeks ago were are also very light. So I was just wondering if you guys could comment a little bit about what is the outlook for cargo demand in the coming quarters, what are the main products that where you have seen a deceleration. And another point is you still have, LAN still has two freighters to be received I think this year. So if demand does not get back, would you reconsider those deliveries or what can you do to accommodate a softer demand on higher aircraft deliveries?

Hi, Eduardo, this is Alvaro Carril from the cargo division. And yes, as you said before, we've seen a decrease, a deceleration on the cargo process starting in the second semester last year and continuing in the first semester of this year. This is mainly what we call southbound cargo meaning southbound cargo is cargo coming from the U.S., Europe and Asia into Latin America.

This is mainly investments or high tech products, cellular phones, computing and things all related to consumer electronics or the investment for the industry here in Latin America. As the growth of the countries here has been decelerating a little bit especially in Brazil because roughly 40% to 45% of all this, the traffic that we brought into Latin America goes to Brazil. And as Brazil has decelerated a little bit, we have also seen that cargo flows has been coming down a bit or not growing at the same pace that we were expecting.

On the other hand, the outbound cargo, the northbound cargo, as we call it, which are the export from Latin America to the rest of the world, mainly perishables, have been improving mainly the salmon out of Chile that has been recovered almost 100% of what was its peak 3 years ago. It's back again. So exports in Chile have been growing a lot and also exports out of the other countries mainly Peru, Colombia and Ecuador. Colombia and Ecuador with flowers mainly for the Mother's Day and also for Valentine's in February, all were up compared with last year. So this balance from inbound cargo, southbound cargo which is down and export cargo which is up.

What we see for the rest of the year regarding this two fares, we have plan for this fares and further more we are going to replace part of our [ECMI] capacity. We currently have two (inaudible) that are flying for us and we are going to do basing this capacity with a new infrastructuring.

And also we are expecting to increase our itinerary in Europe using the 777 and also we are going to be using the 777s to increase our operations into Latin America replacing the 767s to destinations such as Brazil, Chile and taking the 767s that we are going to be pushing out because of the interest to posses those markets. The '67s we're be find them to expand our short hauls flights out of Miami into Bogota Venezuela and Central America.

So can we say that we know, just to see if I understood it clearly, can we say that most of the additional capacity on the cargo side will be basically a replacement to existing capacity? So which means (inaudible) capacity coming from this traditional freighters will be more or less limpid. That's the idea?

It's going to be one-third of each of the three ideas that I mentioned. One third will be replacing ECMI capacity. One third will be increasing our European operation. We are currently flying four 227s and two 767s. The 67 is nor really the right aircraft to fly to Europe. So we are going to be replacing those with 777s. But it will be the one-third also -- last one third will be an increased operations mainly to short haul routes out of Miami. With the 767s there -- we are going to pull out on the long haul routes out of Miami that will be replaced with (inaudible).

Okay, it's clear. And just a second question now on the passenger business, guys. Just to understand also your fleet plan for passengers is also quite aggressive especially compared to other Latin American airlines especially in Brazil companies are re-guiding their fleet plan. So you are adding around 10 more than the 10 aircraft this year and another 13 aircraft next year.

So I was just wondering if you see a real demand to fill all those seats and you don't expect any impacts on the load factor yields or would you consider maybe a reduction or a slowdown on the fleet plan. If you think the passenger demand is decelerating falling what we have seen on the cargo business so far just want to get your impressions about the fleet plan on the passenger side and so.

This is Luis Riquelme from the passenger division. So we see that the current fleet is in line with what we expect the growth to be in the market and especially thinking of new opportunities that we expect with our eyes with integration. But still we have some what you're seeing in slide 10 is [negative] increases. There is some flexibility regarding the A340s and the 777s in the next year. So this plan could be affected downwards depending on the final conditions of the market. So at this moment, we're pretty confident with the flip side on the arrivals we are having.

Also what is important to mention is that by the end of this year, the last quarter, we're expecting the arrival of the 777 and that has been a very efficient aircraft. It will give room to increase operations to certain markets, that with the current fleet we believe we are not the right aircraft, and that will mean that we have much more efficient operations to certain markets outside Latin America.

Okay and do you have an idea of how many aircraft you can collect in your fleet plan? Is demand really slowed down or just like it could be like five, four or ten aircrafts? What is your flexibility in terms of reducing the fleet plan?

Yes, we have like two or three leases ending next year in the case of further expense and also we have the possibility to get rid of A340s. That's what a fleet of five aircrafts in the fleet. So we have the flexibility of around four -- sorry, eight or nine aircrafts. Also some of the aircrafts plans have to be based or some of them already are, so one of the alternatives also is to get rid of some of the aircraft currently ours. So we have five or six (inaudible).

Okay, thank you very much for the answer.

Nicolai Sebrell, Morgan Stanley.

I was wondering if you co talk a little bit more about wages and the wage increse as we saw in the cost lines. How much of the increase we saw is recurring? And just curious about what kind of increase you saw in terms of wage increase that workers see in their paychecks that you gave for this year. And is this a contract that last just a year and you'll do the negotiation again next year or is this the multi-year contract? That's the first que.

And then second question, if you co talk a little bit -- well, I guess, you've already talked about cargos so let's skip that. If you co talk about Argentina, you discussed Colombia, but Argentina, obviously, I am surprised when I looked in some of the graphs that you showed.

Even Argentina growth has done pretty well despite of the noises coming out of that country. So if you can just mention a little bit what your outlook there is, if there's been any more issues like what happened at the park key, the regulatory changes there that pertain to you guys. And how much or what the outlook is for market share considering that the income that there is obviously not one of the best operators. Thanks.

Yes. Hi Nick. Regarding the wages and salaries line, the increase that we saw this quarter as we mentioned was in part related to the collective bargaining agreement. We have two unions that finalized their collective bargaining during the first quarter, one of the pilot unions as well as the administrative union. The important thing here is that these were anticipated negotiations. So we negotiate prior to the actual base of the agreement and we signed four-year contracts with these unions.

So that means that the conditions that are set out are for the next four years and there is no negotiation before that. So that's obviously a positive news. There is some limited but some real wage increases in these contracts. Outside of that, the increase in wages is related to inflation in each of the domestic markets.

And in addition to that, the rest of the increase is due to the fact that we've been seen increases in the actual number of employees in preperation for the growth that we have coming in, in the following quarter as well as the fact --

Okay, can I just ask one to each other, How in terms of real wage, increase is probably like what 1% or 2%?

The part with inflation, yes.

Okay, perfect.

But inside in the contrast, there's additional wage increases to that, different for each of the unions.

Understood.

So now the follow-on was just about Argentina.

Yes. Well, regarding Argentina, we have been seeing positive results given the fact that we had an increase in the fare ban. As you know that fares in the domestic market are regulated and there was an increase during the first quarter. So that has had a positive impact as well. But we don't have -- I mean we've also increased some capacity there, but we don't have market share targets significantly different to the position that we have today. So our strategy in Argentina hasn't changed.

Okay, so Argentina is more of a stay state. You are not firstly taking, shooting it for the market share, at least not on purpose?

No.

Great. Thank you.

Savanthi Syth, Raymond James

Just a quick follow up on the cargo side. So what's the capacity growth on a quarterly basis? I am assuming it will be towards the end of the year, you'll see some year-over-year bigger year-over-year growth because of the aircraft delivery.

This is Alvaro Carril from the cargo division. From the cargo division, yes, we have -- we have currently our fleet is 700-767, two 777. The two 777 that would be coming in by the end of the year with the sense roughly a 15% increase in our capacity or less.

Okay. So you will see a lot of the negative year-over-year declines in capacity in the second and third quarter?

No, I mean on the market, we've seen at the moment an increase in capacity and all the competitors including our additional capacity during the commercial year is what you mean. So no, we ve seen this year and then it was received by the end of the year, he's having increased competition. So we see the solution, but we will be in the market for the -- for on this year and whole of the year. So no, I don't see capacity pulling out, but on the cargo business, it's very -- I am telling it changes very fast in shortage of time.

So if peition is too strong, there is a big chart that some of the capacity can pull out very fast. We don't foresee nothing like that at the moment, but if something like that happens, it can happen in (inaudible).

Okay, and then just my follow-up question. Just on the synergies we are talking about, thinking about your experience with AIRES and how long it's going to take them to get that business profitable, taking longer than you had anticipated, what's the level of confidence with this synergies being targeted with the LAN-TAM merger and the deliverables there?

As I mentioned, we feel confident with the the current $600 million and $700 million. So I think we are now bigger than but that's why our estimation is --

And then maybe with the first year's synergy, is that more back-half loaded in the first year or how should we think of once the acquisition takes -- the closing finishes, like how -- what should we think about the time line on being able to move forward and bring those synergies?

The $200 million that we mentioned for the first year, well, is for the first 12 months after the close. And then they should begin to occur probably towards the second half of that first year which puts us in sort of the first part of 2013 different from the recognition of the one-time cost which will probably occur pretty shortly after the close of the merge. So during 2012, we'll expect to have recognized more of the one-time cost and to start recognizing the synergies towards the end of 2012, beginning of 2013.

All right, thank you.

(Operator Instructions). [Ryan Centhope], Citigroup.

I am going to keep it very brief. I'd like to know if there's a chance that LAN-TAM doesn't join either global alliance and stays independent. And the second one is after the merger, will TAM level debt be considered nonrecourse for LAN-TAM? Thank you.

In Tam, the alliance we have not decided yet. It is something probably we will analyze after day one. And in terms of --

In terms of (inaudible) we still have not made a decision regarding a time set. That is something to be analyzed post day one. So we may have ideas but those ideas are not yet happening. But going forward on the lead after the combining, it's going to be linked to LAN-TAM, of course. That's (inaudible) going forward because we have (inaudible) perspective on future price financing.

Okay, very clear. Thanks a lot, appreciate it.

You're welcome.

(Operator Instructions). Fernanda Rodriguez, AFP Habitat.

Yes, my question is about merger growth. How much of the total merge growth; how much is it and how much is already being included in the previous quarters?

Meaning the cost of the merger?

Yes, the likely value growth or stuff like that.

I figure the outcome and -- for this quarter it was $2.2 million compared to that last year $15 million, plus in 2011 (inaudible).

How much is for 2012?

The total cost that we estimate after day one are approximately $170 million apart of the --

Yes, it is a one-time (inaudible).

Okay. And how much of this has been including previous quarter?

Well, as Alejandro mentioned, we recognized last year approximately $15 million of cost relating mostly to season expenses.

Last year this quarter that was $2.2 million.

Okay, thank you very much.

Welcome.

Richa Talwar, Deutsche Bank.

Just one here on the guidance with regard to the synergies. Just wondering as we're modeling it out, what -- maybe if you can provide a little bit more guidance as to what cost items might start to affect the synergies to know that even later in the first year?

Are you talking about the $170 million cost estimate?

No, more like the $200 million benefit I guess. I mean, what items are going to start naturally reflecting that improvement?

Well, I think we'll -- I mean, for now just the synergy estimate that we provided is just that. We don't -- obviously we're working to achieve most of these synergies as quickly as possible after the close and they are both revenue and cost opportunities that can be implemented quickly, but for now we can't really provide much more insight.

Okay, fair enough. Thank you so much.

(Operator Instructions). Nick Sebrell, Morgan Stanley.

A quick follow up on the other expense line. I was curious in terms of the increase, what -- how much of that was related to the merger and then were there other one-time items maybe not related to the merger, but other outsourcing fees or otherwise? Any details you can give on that would be helpful.

The $2 million related to the merger transactions. But for the rest, the biggest increases are in advertising and marketing and in reservation system expense.

Okay, in the reservation system, does that have to do with an improvement that you're doing -- I guess obviously you said it's not related to the merger. So it's something separate, is that right?

No, it's not related to the merger. It will -- as you know, we are planning a change in our reservation and in inventory system later this year. And so we had ongoing cost for the last couple of years related to the rollout of that.

Could you remind me -- sorry, go ahead.

It's nothing specific to this quarter.

Got it. And if you could remind me what system you use for revenue management and reservation facilities. Do you use one integrated system like Sabre or something else?

No, well, right now we have an inventory system which is an Iberia-development inventory system and we have a reservation system which is (inaudible) and we are switching over both of those to Sabre starting later this year.

Perfect. Thank you.

(Operator Instructions). There are no questions at this time. I would like to turn the call back over to Mr. de la Fuente for any closing remarks.

Thank you again for joining us today. Please feel free to contact our Investor Relations department if you have any additional questions. We look forward to speaking with you again soon. Thank you very much and bye.

Thank you. This concludes today's conference call. You may now disconnect.