Earnings Release 4Q15

Transcription

1 Monterrey, Mexico, May 27, Grupo Famsa, S.A.B. de C.V. (BMV: GFAMSA), a leading Mexican commercial conglomerate in the retail, consumer credit and savings sectors, announced today its earnings results for the fourth quarter and full-year These audited financial statements have been prepared in accordance with IFRS and the interpretations valid as of December 31, Figures are expressed in millions of current, nominal Mexican pesos, unless otherwise stated. Highlights Grupo Famsa Famsa Mexico Banco Famsa Famsa USA Grupo Famsa posted a 8.3% growth in its Consolidated Total Sales in the fourth quarter 2015 Consolidated EBTIDA remained almost unchanged vs 4Q14, amounting to Ps.354 million Famsa Mexico s Total Sales growth trend accelerated in 4Q15, growing by 8.9% Personal Loans, Motorcycles and Electronics contribution stands out in the sales mix of the quarter Banco Famsa s Non-performing Loans (NPL) Ratio was 9.8% as of December 31, 2015, 440 bps that as of year-end 2014 (14.2%) Bank Deposits recorded a significant growth of 24.5% YoY, totaling Ps.18,359 million as of year-end 2015 Famsa USA s Total Sales in MXPs increased by 4.2% in 4Q15 Personal Loans and Famsa-to-Famsa Sales performed as top drivers, recording a higher dynamism than the rest of the categories in 4Q15 Consolidated Financial Results 4Q15 4Q14 % % Net Sales 4,755 4, % 16,377 14, % Cost of Sales (3,223) (2,553) 26.3% (9,322) (8,065) 15.6% Gross Profit 1,532 1,839 (16.7%) 7,055 6, % Operating Expenses (1,392) (1,636) (14.9%) (5,991) (5,817) 3.0% Other income, net 5 16 (68.4%) % Operating Profit (33.8%) 1,124 1, % EBITDA (0.0%) 1,670 1, % Net Income (103) 47 (317.6%) (59.8%) Gross Margin 32.2% 41.9% % 45.7% - EBITDA Margin 7.4% 8.1% % 9.7% - Net Margin (2.2%) 1.1% - 0.9% 2.5% - 1/14

2 COMMENTS FROM THE CHIEF EXECUTIVE OFFICER The continuous strengthening of our operations in Mexico drove a 8.3% growth in the Consolidated Net Sales for the fourth quarter Our Consolidated EBITDA for the full-year 2015 amounted to Ps.1,670 million, an increase of 15.8% vs In 4Q15, we launched advertising campaigns designed to enhance the profitability of our store network and continued to improve our credit origination procedures, through a timely estimation of our customers payment capacity. These initiatives were reflected in the rise of 8.9% YoY in Net Sales that Famsa Mexico posted this quarter. Additionally, the increased efficiency of our credit-granting procedures, combined with the enhancement of our collection model throughout 2014 and 2015, continued to have a positive impact on Banco Famsa s Non-Performing Loans (NPL) ratio, which has declined 780 bps., from 17.6% in June 2014 to 9.8% in December The constant and sustained improvement of this indicator reflects the implementation of a comprehensive strategy to make the recovery of loans and collection of nonperforming accounts more agile in each of the different cities we operate. In Famsa USA, Net Sales grew by 4.2% in MXP during the fourth quarter It is important to note that we continued to observe dynamism in the origination of Personal Loans and Famsa to Famsa category. We are committed to consolidating the 2015 positive results as we go forward. In 2016, we expect to achieve an annual growth in Consolidated Net Sales in the range of 6% to 9%, and an annual growth rate in the range of 12% to 18% in Consolidated EBITDA. Humberto Garza Valdez Chief Executive Officer 2/14

3 Business Segments Famsa Mexico In 4Q15, a higher dynamism was reflected through the innovation of our commercial initiatives; resulting in a notable increase of Famsa Mexico s sales volume. Total Sales in Mexico rose by 8.9% during the An important part of this growth was a result of our agility to leverage opportunities originated from the strong seasonal demand of El Buen Fin and the Christmas season. In addition, Famsa Mexico offered attractive promotions that were highly advertised, such as 99 semanales o menos (99 per week or less, referring to 99 pesos) and Más barato que en USA (Cheaper than in the USA), thereby driving demand for core categories. During 4Q15, sales volumes of Motorcycles and Electronics grew by 14.5% and 12.0% respectively, YoY. Banco Famsa During 2014 and 2015, Banco Famsa implemented diverse initiatives to improve the performance of its operations, driving a careful monitoring of credit indicators across our different locations and regions, as well as the timely deployment of collection teams; thus improving the tracking of debtors, while offering payment alternatives according to our customers financial capacity, and thereby reducing the bank s credit risk. Consequently, Banco Famsa posted a substantial improvement in its (NPL) ratio, which dropped to 9.8% as of December 31, 2015, 780 bps below the highest record of 17.6% posted in June Banco Famsa: Non-Performing (NPL) Ratio 17.5% 17.6% 15.5% 15.4% 16.4% 16.5% 14.8% 15.1% 15.7% 16.2% 13.5% 14.2% 13.3% 11.5% 9.5% 11.9% 10.4% 9.8% Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar'14 Jun'14 Sep'14 Dec'14 Mar'15 Jun'15 Sept'15 Dec'15 Source: Banco Famsa For the full-year 2015, Bank Deposits, distributed over 1.2 million accounts, totaled Ps.18,359 million, 24.5% above those as of year-end 2014, reflecting the successful campaign designed to expand our deposits base that was implemented during the final quarter of the year. As of year-end 2015, Bank Deposits represented 66.9% of Grupo Famsa s funding sources. It is important to note that 90.0% of these 3/14

4 deposits correspond to time deposits, reflecting the trust that we have generated in our expanded customer platform. Additionally, Banco Famsa s average cost of funding dropped to a new record low of 4.1% during 4Q15. Interest on Bank Deposits totaled Ps.180 million in 4Q15, increasing 3.3%, while accumulated Interest on Bank Deposits as of year-end, 2015 fell 1.5% to Ps.685 million. Banco Famsa: Bank Deposits 4.7% 14,752 10,695 15,491 15, % 4.4% 10,901 10,787 16,501 11, % 18,359 13, % 4.8% 4.6% 4.4% 4.2% 2,475 2,998 3,298 3,572 3,456 1,582 1,592 1,622 1,751 1,831 4Q14 1Q15 2Q15 3Q15 4Q15 4.0% 3.8% Demand Deposits Time Deposits Time deposits with optional availability Avg. Cost of Funding Source: Banco Famsa Finally, Banco Famsa continued to implement its credit portfolio diversification strategy, growing the base of productive loans to Ps.4,009 million in 4Q15, 37.7% higher than that of the previous year. The NPL of its commercial portfolio remained stable, at 2.1% as of December 31, Famsa USA During the last three months of 2015, Famsa USA posted a 4.2% increase in MXP Net Sales. Excluding the foreign exchange effect, the origination of Personal Loans and Famsa-to-Famsa Sales (a sales system whereby our customers can purchase products in the United States for delivery in Mexico) continued to show strong dynamism, growing in USD by 36.0% and 38.2%, respectively, in 4Q15. 4/14

5 Business Units The following breakdown of our network of stores and bank branches is presented to clearly illustrate Grupo Famsa s business units results. Retail Stores & Business Units Floor Space (m2) Banking 4Q15 Openings Closures 3Q15 4Q14 % YoY 4Q15 4Q14 % YoY Total % 566, , % Stores % 519, , % Famsa Mexico % 448, , % Famsa USA % 66,434 64, % PL USA Branches % 4,150 2, % Banking Branckes¹ (0.2)% 40,791 40, % To be Conv. Bches.² (13.7)% 6,133 7,140 (14.1)% (1) Most banking branches are located within Famsa Mexico stores (2) Acquisition of branches from Monte de Mexico, S.A. de C.V. closures refer to acquired branches converted to banking branches. Consolidated Financial Statements Net Sales Segment (1) Includes sales of non-retail businesses (2) Includes Banco Famsa Net Sales Same Store Sales (SSS) 4Q15 4Q14 % % 4Q15 4Q Grupo Famsa¹ 4,755 4, % 16,377 14, % 7.2% 6.3% 7.7% 6.3% Famsa Mexico² 4,221 3, % 14,239 13, % 8.2% 7.5% 8.5% 7.5% Famsa USA % 2,027 1, % 1.3% 0.4% 2.2% 0.4% Others % % Intercompany (240) (221) 8.9% (830) (702) 18.3% Q15 Consolidated Net Sales totaled Ps. 4,755 million, rising 8.3% vs 4Q14. This result was mostly due to the continuous improvement of operations in Mexico driven by advertising campaigns designed to stimulate the demand for durable goods; reaching a solid growth in sales and capitalizing the benefits of the strong seasonal demand of November and December. Accumulated Consolidated Net Sales totaled Ps.16,377 million as of December 31, 2015, increasing by 10.2% vs During the second half of the year we experienced accelerated growth in Famsa Mexico s durable goods sales, posting a 9.5% growth for full-year Famsa USA s sales rose by 15.9% YoY in 2015, driven by stronger dollar. 5/14

6 Similarly, Grupo Famsa s Consolidated Same Store Sales (SSS) grew by 7.2% in the quarter and 7.7% for full-year 2015, boosted by the 8.2% and 8.5% growth of Famsa Mexico s SSS for 4Q15 and full-year 2015, respectively. Consolidated Sales Mix $4, % 18.0% 16.5% $4,755 $14, % 14.6% 13.3% 10.6% 9.8% 10.6% 12.6% 13.1% 17.3% 15.8% 17.4% 20.1% 15.1% 18.6% 15.7% $16, % 4.4% 5.4% 3.9% 5.2% 5.3% 6.0% 5.8% 11.7% 10.0% 13.0% 16.4% 18.7% 20.6% Computers Motorcycles Electronics Mobile Phones Appliances Furniture Personal Loans Other 4Q14 4Q Cost of Sales The 4Q15 Consolidated Cost of Sales rose by 26.3%, reaching Ps.3,223 million, in line with a higher volume of sales and higher allowance for impairment of loan portfolios*. The accumulated Consolidated Cost of Sales for full-year 2015 was Ps.9,322 million, 15.6% above that of the previous year. Gross Profit Consolidated Gross Profit for 4Q15 decreased, by 16.7%, to Ps.1,532 million. The quarterly Consolidated Gross Margin declined by 970 bps, from 41.9% in 4Q14 to 32.2% in 4Q15, as a result of higher promotions on the sales floor and a rise in the allowance for impairment of loan portfolios* Accumulated Consolidated Gross Profit as of December 31, 2015 was Ps.7,055 million, 3.9% above The accumulated Consolidated Gross Margin as of December 31, 2015, was 43.1%, a decrease of 260 bps. YoY. * For more detail, see Notes 2, 5.2.4, and 8 of the audited financial statements for the year /14

7 Operating Expenses Accumulated Consolidated Operating Expenses, comprising selling and administrative expenses, grew 3.0% in 2015, growing from Ps.5,817 million in 2014 to Ps.5,991 million as of year-end This increase largely reflects a rise in Famsa Mexico s operating expenses during the full-year 2015, resulting from higher origination expenses and a larger number of stores. Selling and administrative expenses related to Famsa USA s operations grew by 12.1% YoY in dollar terms, as a result of the new branches for personal loans that opened in This increase is equivalent to 33.8%, in MXP, due to the depreciation of the MXP vs. the USD. EBITDA Segment EBITDA % EBITDA 4Q15 4Q14 % % 4Q15 4Q Grupo Famsa¹ ,670 1, % 7.4% 8.1% 10.2% 9.7% Famsa Mexico² % 1,643 1, % 10.1% 7.8% 11.5% 10.1% Famsa USA (116) (6) - (15) 88 (116.7%) (23.1%) (1.3%) (0.7%) 5.0% Others (29.1%) (7.4%) Intercompany (0) (0) 22.0% (0) (0) 26.9% (1) Includes EBITDA from non-retail business (2) Includes Banco Famsa Consolidated EBITDA for 4Q15 remained virtually unchanged from the 4Q14. The Consolidated EBITDA margin decreased by 70 bps., from 8.1% in 4Q14 to 7.4% in 4Q15, reflecting a higher product cost of sales and the rise in the allowance for impairment of loan portfolios. Accumulated Consolidated EBITDA for the full-year 2015 rose by 15.8%, reaching Ps.1,670 million, and the Consolidated EBITDA Margin expanded to 10.2%, 50 bps. above that of Financial Expenses, Net 4Q15 4Q14 % % Interest income % % Interest expenses (214) (127) 68.0% (755) (692) 9.0% FX gain & losses, net (59) (178) (67.1)% (462) (215) 114.5% Total (270) (305) (11.3)% (1,213) (906) 33.9% Consolidated Financial Expenses, Net for fourth quarter 2015 fell by 11.3%, reaching Ps.270 million. Grupo Famsa recognized a foreign exchange (FX) loss of Ps.59 million, compared to a FX loss of Ps.178 million in 4Q14. Accumulated Consolidated Financial Expenses, Net, as of December 31, 2015, totaled Ps.1,213 million, 33.9% above those of 2014, mostly resulting from the effect of the devaluation of the MXP vs. the USD. Accumulated Interest Expense for the full-year 2015 grew by 9.0%, reaching Ps.755 million, compared to 7/14

8 Ps.692 million in The accumulated FX loss in 2015 was Ps.462 million, compared to Ps.215 million in It is important to note that the exchange rate changes recognized in the Income Statement are neutralized by 52% with the revaluation of dollar-denominated assets recorded in stockholders' equity during the full year (foreign currency translation adjustment). Net Income In 4Q15 a consolidated net loss of Ps.103 million was recorded compared to a consolidated Net Profit of Ps.47 million in 4Q14. The Consolidated Net Income for the full-year decreased by 59.8% YoY, from Ps.371 million in 2014 to Ps.149 million in The main drivers on the result were a higher allowance for impairment of loan portfolios* and the depreciation of the Mexican peso against US dollar. Financial Position Summary Representative Items 4Q15 4Q14 % Trade Receivables, net 27,139 23, % Trade Receivables, net 22,606 23,402 (3.4%) Rights to Collect From Related Parties 4, Inventory 2,453 2, % Stockholder s Equity 8,141 10,280 (20.8)% Trade Receivables Regarding Trade Receivables account, a miscalculation was identified in the procedure for grouping certain portfolios in 2015 and prior years that were considered in the valuation and when recording impairment of the aforementioned portfolios in accordance with IFRS. As a result, allowance for impairment of loan portfolios and corresponding deferred taxes increased, decreasing Grupo Famsa s Stockholders' Equity by Ps.2,100 million. The Company signed an unconditional payment guarantee agreement with no reservation, for an amount of Ps.5,091 million, which was considered as Collection Rights from related parties, since it is virtually certain that the collection will be performed. The present value of the guarantee as of December 31, 2015 was Ps.4,534 million. These collection rights are classified as non-current assets in the statement of financial position. As of December 31, 2015, the consolidated balance of Trades Receivables, net of estimates for nonperforming loans, was Ps.27,139 million, 16.0% above year-end This balance includes Collection Rights of Ps.4,533 million. * For more detail, see Notes 2, 5.2.4, and 8 of the audited financial statements for the year /14

9 Debt Debt & Indebtedness Ratios 4Q15 4Q14 % Net Debt 6,906 5, % Gross Debt 9,101 7, % Interest Coverage Ratio (1) Annual figure Net Debt as of December 31, 2015 totaled Ps.6,906 million, 16.3% above that of This increase reflects the effects of the devaluation of the MXP vs. USD, which was partially offset by a higher cash flow generation; reflected in the 18.1% cash rise, increasing from Ps.1,858 million in 4Q14 to Ps.2,194 million in 4Q15. Similarly, the balance of Gross Debt as of year-end 2015, excluding Bank Deposits, grew by 16.7% vs The devaluation of the MXP vs. USD was the main driver behind this increase in Gross Debt. 61% 57% 17% 20% 22% 23% 4 Q Q 1 5 Debt Certificates Credit Lines Foreign Debt 862 1,256 4,241 2, Debt Certificates Credit Lines Foreign Debt Stockholder s Equity As of December 31, 2015, Grupo Famsa s Stockholder s Equity was Ps.8,141 million. During 2015 a miscalculation was identified in the procedure for grouping certain portfolios of that year and of prior years that were considered in the valuation and when recording impairment of the aforementioned portfolios in accordance with IFRS. As a result, allowance for impairment of loan portfolios and corresponding deferred taxes increased, reducing Grupo Famsa s Stockholders' Equity in net terms by Ps.2,100 million. Likewise, such loan portfolios were secured with the support of the controlling shareholder and founder, who owns approximately 70% of the shareholding of Grupo Famsa, with the dual purpose of maintaining the value of the business as well as protect the public investors. It is important to mention that Grupo Famsa continues with the collection efforts of such loan portfolios, and has a period of 18 months starting 9/14

10 December 31, In case the guarantee becomes effective, it would not represent a dilution to the public investors, as the balance of Consolidated Trade Receivables would decrease and an increase in Grupo Famsa s cash and / or fixed assets would be recorded. For more detail, see Notes 2, 5.2.4, 8 and 19 of the audited financial statements for the year Recent developments On February 11, 2016, Standard & Poor s ratified the B global scale rate of Grupo Famsa, and improved its outlook from Negative to Stable. On January 28, 2016, Grupo Famsa successfully concluded the US$33 million full-payment of its commercial paper with HSBC Bank PLC, thus reducing the balance of its dollar-denominated debt by 11%. With this transaction, the balance of the Company s dollar-denominated Gross Debt as of the date of this report was US$271 million; thus reducing its exposure to foreign exchange rate fluctuations. Forward-looking statements This report contains, or may be deemed to contain, forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The future results of Grupo Famsa, S.A.B. de C.V. and its subsidiaries may differ from the results expressed in, or implied by, the forward-looking statements set out herein, possibly to a material degree. 10/14

11 Analyst coverage Since Grupo Famsa, S.A.B. de C.V. ( Famsa ) securities are subject to the rules and regulations included in the Reglamento Interior de la Bolsa Mexicana de Valores (Interior Rules and Regulations of the Mexican Stock Market), the Company would like to inform that, in compliance with that stated in Disposition of the said Rules and Regulations, the following financial institutions provide formal coverage over its stock: BBVA Bancomer, Credit Suisse, GBM, Interacciones, Santander and Vector. For further information on this coverage, please visit. Technical Notes and Bases for Consolidation and Presentation Credit Portfolio: Banco Famsa s business model focuses largely on Consumer Credit, therefore the weight of such credits in the bank s portfolio mix differs from that of the standard financial institutions in the Mexican-banking sector. Consequently, Banco Famsa s results and figures are not directly comparable with those of the aforementioned. Net Financial Expenses: They are primarily comprised of the Financial Expenses corresponding to financing instruments and foreign exchange rate effect. Non-performing Loans Ratio (IMOR): The calculation of IMOR in this Quarterly Report includes Collection Rights in Banco Famsa s total Credit Portfolio. These rights correspond to loans that are discounted via payroll. Due to an accounting reclassification that came into effect in July 2013, they are excluded from the Credit Portfolio used for the calculation of the IMOR indicator for the Mexican National Banking and Securities Commission (CNBV). Percentage rates of change: Percentage rates of change presented in this Report are calculated according to the consolidated financial statements contained herein. 11/14

12 Consolidated Financial Statements Grupo Famsa, S.A.B. de C.V. and subsidiaries Consolidated statements of financial position Thousands of Mexican Pesos 31-Dec Dec-14 $ % Assets CURRENT ASSETS: Cash and equivalents $2,194,323 $1,858,271 $336, % Trade receivables, net 20,889,791 22,545,028 (1,655,237) (7.3%) Recoverable taxes 953, ,492 81, % Other accounts receivable 1,845, ,091 1,030, % Inventories 2,452,557 2,121, , % Total current assets 28,335,519 28,211, , % NON-CURRENT ASSETS: Restricted cash 311, , Trade receivables, net 1,715, , , % Rights to collect from related parties 4,533, Property, leasehold improvements, and furniture & equipment net 2,065,452 2,506,459 (441,007) (17.6%) Goodwill and intangible assets, net 276, ,673 (48,740) (15.0%) Guarantee deposits 118, ,798 10, % Other assets 668, , , % Deferred income tax 2,196,445 2,291,167 (94,722) (4.1%) Total non-current assets 11,886,741 6,896,402 4,990, % Total assets $40,222,260 $35,107,597 $5,114, % Liabilities and Stockholders equity CURRENT LIABILITIES: Demand deposits $14,478,945 $10,135,219 $4,343, % Short-term debt 4,190,162 3,129,548 1,060, % Suppliers 1,627,793 1,305, , % Accounts payable and accrued expenses 1,152, , , % Deferred income from guarantee sales 206, ,868 (14,980) (6.8%) Income tax payable 55,922 24,392 31, % Total current liabilities 21,712,427 15,333,098 6,379, % NON-CURRENT LIABILITIES: Time-deposits 3,879,884 4,616,324 (736,440) (16.0%) Long-term debt 4,910,533 4,666, , % Deferred income from guarantee sales 102, ,216 (1,544) (1.5%) Deferred income tax 1,353, Employee benefits 122, ,922 15, % Total non-current liabilities 10,368,506 9,494, , % Total liabilities 32,080,933 24,827,488 7,253, % Stockholders equity: Capital stock 1,704,085 1,709,173 (5,088) (0.3%) Additional paid-in capital 3,812,903 3,873,961 (61,058) (1.6%) Retained earnings 1,972,385 4,090,052 (2,117,667) (51.8%) Net income 146, ,367 (223,397) (60.3%) Reserve for repurchase of shares 233, ,426 40, % Foreign currency translation adjustment 240,396 14, ,476 - Total stockholders equity attributable to shareholders 8,109,869 10,250,899 (2,141,030) (20.9%) Non-controlling interest 31,458 29,210 2, % Total stockholders equity 8,141,327 10,280,109 (2,138,782) (20.8%) Total liabilities and stockholders equity $40,222,260 $35,107,597 $5,114, % 12/14

13 Grupo Famsa, S.A.B. de C.V. and subsidiaries Consolidated statement of income Thousand of Mexican Pesos 4Q15 4Q14 % % Total revenues $ 4,755,480 $ 4,391, % $ 16,377,080 $14,856, % Cost of sales (3,223,118) (2,552,574) 26.3% (9,322,402) (8,065,116) 15.6% Gross profit 1,532,362 1,839,352 (16.7%) 7,054,678 6,790, % Selling & administrative expenses (1,391,933) (1,636,346) (14.9%) (5,991,419) (5,816,698) 3.0% Other Income,Net 5,069 16,044 (68.4%) 61,165 48, % Operating profit 145, ,050 (33.6%) 1,124,424 1,022, % Financial expenses (272,365) (305,429) (10.8%) (1,216,645) (907,688) 34.0% Financial income 2, % 3,995 1, % Financial expenses, net (270,268) (304,747) (11.3%) (1,212,650) (905,924) 33.9% Profit before income tax (124,770) (85,697) (45.6%) (88,226) 116,954 (175.4%) Income tax 21, ,162 (83.9%) 237, ,405 (6.7%) Consolidated net income (103,292) 47,465 (317.6%) 149, ,359 (59.8%) Controlling interest (102,412) 48,339 (311.9%) 146, ,367 (60.3%) Non-controlling interest (880) (874) 0.7% 2, % 13/14

14 Operating activities Grupo Famsa, S.A.B. de C.V. and subsidiaries Consolidated statement of cash flows Thousands of Mexican Pesos Profit before income tax (88,226) 116,955 Depreciation and amortization 545, ,278 Allowance for doubtful receivables 1,689,702 1,241,556 Loss on sale of property, leasehold improvements, furniture & equipment (53,446) 1,535 Estimated liabilities for labor benefits 19,932 18,722 Interest income (3,995) (1,764) Interest expenses 1,439,909 1,387,827 Trade receivables (5,581,389) (3,183,391) Inventories (331,244) 53,160 Other accounts receivable (1,241,882) (93,307) Suppliers 331,491 (300,539) Accounts payable and accrued expenses 131,339 (84,126) Income tax paid (44,294) (49,255) Demand deposits and time deposits 3,600, ,725 Interest to bank depositors (678,651) (698,653) Exchange gain and losses, net 775, ,872 Net cash flows from operating activities 511,301 78,595 Investing activities Acquisition of property, leasehold improvements, furniture and equipment (255,844) (194,493) Acquisition of intangible assets (8,710) (16,477) Proceeds from sale of furniture and equipment 305,890 12,321 Interest received 3,995 1,764 Net cash flow used in investing activities 45,331 (196,885) Financing activities Interest paid (734,299) (665,136) Proceeds from current and non-current debt and bank loans 1,212, ,390 Payments of current and non-current debt and bank loans (674,917) (458,226) Increase of capital stock and additional paid-in capital - 1,476,391 Share repurchase, net (25,442) (67,343) Net cash flow from financing activities (221,793) 471,076 Increase in net cash and cash equivalents 334, ,786 Adjustments to cash flow as a result of changes in exchange rates 1,213 (3,607) Cash and cash equivalents at the beginning of the period 1,858,271 1,509,092 Cash and cash equivalents at the end of the period 2,194,323 1,858,271 Notes to the Financial Statements: For a greater depth of analysis, we recommend referring to the Notes of our Financial Statements at 14/14