Good morning everyone, and welcome to this webinar to discuss the results of the first quarter 2022 of Grupo Carso. Before we begin, I would like to remind you that this event is being recorded for that, and that information discussed today. Consolidated sales of Grupo Carso improved 41.9%, totaling MXN 49 billion. Grupo Sanborns went up 21.9%, with sales improving at the department stores and restaurants. Condumex grew 1.7% related to higher volumes in harnesses and cables. Carso Infraestructura y Construcción posted a 42.9% increase due to the progress in telecommunication and infrastructure projects and higher oil drilling activities. Carso Energy reduced 13.2% due to Forex variations. Elementia decreased 7.1% this quarter, coming from lower demanding Construsistemas. Excluding Elementia, total sales increased 18%, totaling MXN 40.7 billion. Consolidated operating income increased from MXN 3.8 billion-MXN 6.1 billion, while EBITDA went up 58.6% with lower administrative and selling expenses, reducing 160 basis points as percentage of sales from 13.3%-11.7%. The main increases in profitability came from Grupo Sanborns and CICSA, both of them with a better product mix and project mix. EBITDA totaled MXN 7.5 billion, higher than MXN 4.7 billion a year ago, and Condumex and Carso Energy improved 3.8% and 3.2% respectively. Excluding Elementia, the operating income and EBITDA increased 34.2% and 28.6% respectively. The consolidated controlling net income increased 27.4%, reflecting mainly the improvement in operating results. Explaining the performance by division, the total sales of Grupo Sanborns were MXN 16.4 billion, increasing 21.9%. CS grew 23.2% its total sales, Sanborns 18.5%, and iShop 22.6%. The retail gross margin increased 80 basis points, and operating expenses reduced from 28.1%-26.5% of sales. Operating income totaled MXN 1.1 billion compared to MXN 599 million last year. EBITDA improved 52.5%, and net income reached MXN 915 million compared to MXN 494 million in the first quarter of the previous year. In this division, based on the result of the tender offer for the outstanding shares of Grupo Sanborns SAB, Grupo Carso exceeded the 95% interest. Therefore, an extraordinary meeting was called for April 26, 2023 to request the cancellation of the registration of Grupo Sanborns in the National Securities Registry. Regarding the industrial division, Grupo Condumex posted a 1.7% improvement, totaling MXN 12.5 billion. This increase came from the cable sector, with higher export volumes and higher auto part sales, despite a reduction in the exchange rate and plant shutdowns with major customers. The operating income and EBITDA of the industrial division went up 3.8% and 3.9% respectively. Controlling net income improved 9.7%, going from MXN 1 billion to MXN 1.1 billion this year. Carso Infraestructura y Construcción contributed with additional MXN 3.2 billion in revenues, increasing 42.9% and reaching MXN 10.9 billion. The divisions that had the best performance were infrastructure, showing important volumes in the different projects in this division. Manufacturing and services for the oil and chemical industry, where land drilling increased 75.7% from fluids, directional drilling and repair of oil wells. Pipeline installations, which grew 25.9% due to telecom projects. The operating income and EBITDA in Carso Infraestructura y Construcción improved 81% and 69.6% respectively. Controlling net income increased, reaching MXN 872 million, driven by the sound operating results. In this division, we are expecting higher volumes from the different projects, the pipeline business for telecom and civil construction, where growth is expected during this and the following year in private projects like hospitals. The projects currently in place are the Las Varas-Vallarta and Mitla-Tehuantepec highways, telecom installation services, equipment for the petrochemical industry, drilling of deep wells for Pemex, various services and equipment for the oil industry, the construction of hospitals, and the Escárcega-Calkini section two of the Mayan Train. The backlog totaled MXN 38.1 billion compared to MXN 48.8 billion a year ago. The sales of Elementia decreased 7.1% from MXN 8.8 billion in the first quarter of 2022 to MXN 8.2 billion in the first quarter of 2023. This decrease was due to lower demand in Construsistemas USA. Elementia's operating income and EBITDA increased 24.5% and 6.6% respectively, reflecting cost efficiencies that improved profitability. Controlling net income in Elementia fell 49% to MXN 157 million. The sales of Carso Energy dropped 13.2%, totaling MXN 822 million, with lower revenues from the two hydroelectric plants in Panama, where lower rain levels and spot prices of energy were recorded, as well as exchange rate effects. The Samalayuca-Sásabe pipeline, where we have 100% participation, and the Waha-Presidio and Waha-San Elizario gas pipelines in Texas, USA, where we have 51% participation, received rents from gas transportation. The operating income and EBITDA of Carso Energy went up 3.2% and 1.6% respectively. Net income increased 59.3%. Lastly, in the gas pipeline business, we have progress in the construction of the compression station of the Samalayuca-Sásabe pipeline, which will significantly increase the capacity. With this, I finish my general comments. We can proceed to the Q&A session. Thank you. Please, if someone wants to ask a question, you can raise your hand and we will open your microphone. Alejandro, good morning. You can make your question now. Hi, Angelica and Arturo. Good morning. Two quick ones. Thank you for taking my questions. On CICSA, the results have been about performed, I think all of us. My question is regarding the ramp up of your projects or the current level of income or revenues that you are seeing. When I see that and I see your backlog at MXN 23 billion, you're going to, you know, extinguish your backlog in the next three quarters. What can you tell us about the construction side of the business, you know, for the next 12 months, 18 months? Should we see a deceleration due to this backlog? My second question is on Carso Energy. I'm surprised by the strong decline in revenues. Could you give us more color on that, please? Good morning, Alejandro. Regarding Carso Infraestructura y Construcción backlog and the levels that we are showing at this quarter, let me try to explain. Firstly, the important margin level is because of the high volumes that we are performing in this quarter and in the last two or three quarters because of the telecommunications sector, the oil ones and obviously of the infrastructure. If for the next months, for the next quarters, we are seeing not a lot of opportunities in the infrastructure sector. We are going to continue with the growing in the telecommunication sector and in the construction civil sector one. I mean, we have around MXN 10,000 million backlog for hospitals and another buildings that we are doing for the private sector. As you know, in the public sector, there are no very many projects in bids because of the concentration of the government in the big projects as Maya Train, Dos Bocas, et cetera. We are trying to compensate the lack of infrastructure projects with the telecommunications growth and the construction civil project that we have almost in contract. It's important to say that the backlog that we are informed is not showing the total backlog of the telecommunication sector because we just record the backlog when we sign the contracts. In this sector, we just sign contracts per year. If we can sign contracts for multi-years contracts, maybe the backlog is MXN 10,000 million-MXN 12,000 million pesos more. We have a challenge in the infrastructure sector. I think the rest of the divisions of Carso Infrastructure and Construction is going to compensate for the next year. This year we are expecting to close in very similar numbers that the 2022 year. We have a challenge for the next year because of the. As you know, the next year are the elections in Mexico, we don't expect a lot of infrastructure projects for bids. Regarding the energy sector, the main impact is because of the exchange rate. As you know, the 100% of the incomes in that sector is in dollars. We have a temporary effect in the hydroelectrics in Panama. As you know, as you remember, in Panama, we have the best year of the history in the last year. In the beginning of this one, the spot prices fell down a little. We are reaching new agreements with some customers. And we think we can recuperate the same level that the last year for the rest of the year. We don't see an important effect for the rest of the year. And as you can see, the margin is maintaining, and we have a good expectations to recuperate in the rest of the year. I don't know if that is clear for you. Yes, Arturo. Thank you. Thank you. Miguel. Miguel, you have to open your microphone. Okay. We can let, then, Vidal Lavín, if you want to ask your question. You have to- Hi. Good morning. Can you hear me? Yes. Yes, please, Vidal. Okay. Go ahead. Thank you, Arturo. Thank you, Angelica. Yes, I have a couple of questions. One is regarding your tax rate. It's around 15% in the last 12 months, and it's the lowest in more than a decade. If you want to comment on that please first. Second question is regarding capital allocation. What are your expectations for this year? You have a very solid financial situation with net debt to EBITDA in around 1.2x. If you can comment a little bit on CapEx, share buybacks and dividends, that would be great. Thank you. Yes. Hi, Vidal. Regarding the CapEx for this year, it's going to be concentrate in Elementia and in Carso Energy. We have some CapEx in Condumex for the growth on the auto part business. As I commented, we are talking about MXN 7 billion. More or less, MXN 3.2 billion is for Elementia. We have projects in cements in Mexico and construction systems in the USA, and we are trying to improve our process and our capacity in order to increase our margin and our volumes. In the case of Carso Energy, we are finishing the concept compression station for the Samalayuca pipeline in order to increase the capacity and increase the incomes in that project. In the case of Condumex, as I was saying, we are growing in the auto parts sector because new projects with BMW, GM and other customers. That is the most important CapEx and location for this year. The other question? It was regarding the tax rate, that it's very low versus historic levels and also versus the official tax rate. Yeah. We have some important impacts in the income tax because of the. As you know, our pipelines and other external companies, we consider as functional currency as US dollars. When you have an appreciation of the Mexican peso, as was in this quarter, we have to recalculate the revaluation of the projects, and that has an deferred income tax effect. I mean, that is because of the exchange rate appreciation, that is a, well, a normal situation when you consider the dollar as a functional currency when you have a Mexican peso as an reported currency in Mexico. That kind of impact are affecting the income tax rate. Okay. Finally is regarding the paying dividends and shares buyback. Yes. We are going to pay dividends. We are now finishing the definition. It is going to be certainly more than the previous year, but we are going to inform in the assembly that is going to take place next Thursday. Next 24th, no? 24th. April 24th. We are planning to pay dividends. It's going to be a little bit more than the previous year. We are going to inform on Sunday. Okay. Thank you very much. Thank you. The operating income margin and EBITDA margin, we expect to improve to the same levels as in 2019 this year. I don't know, Miguel. It seems that you haven't heard Angelica. The rest of the in the meeting are hearing? Okay. I will repeat the question was of Miguel Ulloa asking the expectations about the credit business in Grupo Sanborns, the level of NPLs and the credit portfolio. I was telling him that the credit portfolio is around MXN 13 billion, and that we have a credit income around MXN 3 billion per year. The NPLs were at 7.2% - 3%, we haven't gone up to 5%, which is the levels that we had in the pandemic. We are relying on the credit business, also in other initiatives to improve the EBITDA margin, that if you see, we haven't recovered the EBITDA and operating margin of 2019. We are expecting a recovery this 2023 in the EBITDA margins of Grupo Sanborns. Not only with the credit business, but with other initiatives such as the Dax, which is a new store or a new format. Not new, but new in the metropolitan areas, since it's a format that was born in the 80s in La Paz, Baja California, Los Cabos and Tijuana. We have around 28 stores open, and we opened four stores last year in Plaza Tepayac, in Plaza Carso. It's a format of around 500 square meters-600 square meters, which is considered self-service stores because it's beauty products, cosmetics, some snacks, some kitchen items. This high margin format will also contribute for a recovery of the EBITDA margin in 2023. I don't know, Miguel, if you hear this time. Okay. Thank you, Miguel. It seems that Alejandro has another question. Yes, Arturo. Thank you. It's just a quick follow-up on the last two questions, one on Vidal and Miguel. You mentioned the CapEx for this year was going to be MXN 7 billion. That's with a B and that MXN 3.2 billion come from Elementia. If that's true, are you expanding operations in the cement business in Mexico, the U.S.? What's in that, you know, in that MXN 3.2 billion CapEx for Elementia? The other one is on the NPLs. Angelica, I don't know if I got you right, but you said your NPLs at the close of the first quarter was 5%. Okay. Regarding the CapEx, just to clarify, Miguel, billion. We are speaking in English, I think we are talking about MXN 7 billion. Okay? Just for clarifying that. Yeah. Around $300 million, right? Yes. Yes, yes. Okay. As I was saying, MXN 3 billion more or less is Elementia. We have two main projects in that MXN 3 billion. One of them is increase the capacity of Construsistemas in the U.S. We are seeing an increase in the construction industry in the United States, and we are trying to increase in the short term our capacity in Construsistemas U.S.A. On the other hand, we are increase our capacity in cements in Mexico. That are the two main projects for CapEx in Elementia for this year. The rest, as I was commented, is the Condumex growing in the auto parts and cable business, and we are finishing the compression station in Carso Energy. We have some investment in Grupo Sanborns, regarding the Dax stores that Angelica commented, and some iShop stores that we are going to open in this year. That is mainly our CapEx. I don't know if that was clear. Yeah. For your question, Miguel. Yeah. Yeah. That's definitely clear, Arturo. If I may, one more on the expansion on cement. Are you guys able to, you know, to tell us the amount of that expansion? Is that, you know, 500,000 tons, 1 million tons? Would that be a greenfield or a an expansion on one of your current plants? Yes. Give them a minute, maybe Angelica is going to ask the other question, please. Thank you, Arturo. Okay. Well, regarding the portfolio, the credit portfolio, we've gone from MXN 11 billion to MXN 13 billion in 2022. This was a 20% increase. The number of credit cards from 4.7 million to 5.2 million credit cards. The NPLs from 2.9% increased a little bit to 3.4%. If we consider the first quarter of 2023, the NPLs from 2.8% increased a little bit to 3.3%. What I was commenting is that it's still a stable portfolio and the 5% that you were that we were talking about is a comparison because of in pandemic levels we had 5%, but this is not now. We have some NPLs, and the credit income in the first quarter improved 41.9%. Very clear, Angelica. Thank you. You know, we have not the final volume increase in cement, but maybe in the rest of the morning we can show it, send the information because I have not the definitive one. Okay? Sorry. Maybe in the rest of the day, I can send you. Yeah. That would be great, Arturo. Thank you. If someone has another question, you can raise your hand and we will open your microphone. There are no further questions, we will finish this webinar. Thank you for joining us today to speak about the results of Grupo Carso. We hope to speak with you soon. Have a nice day. Thank you.