We see that the digital segments can achieve the BRL1.2 billion as net revenues in 2028. This is our goal right now for 2028 (ph). We see that the B2B is where we can get most part of this growth, providing access for mainly for the pharmaceutical industry for providing demand for the providers and provide efficient to payers. This is our plan, the first phase of it is the launching of service of access for the pharmaceutical industries, what we are capturing the revenues right now, but we see these Digital Service segment as this opportunity of BRL1.2 billion in 2028.
Virgilio Gibbon: Hi, Fred. But just to add a point here. So during 2022, I think the main focus was to complete our ecosystem, our six pillar and we did that as the last acquisition of Glic reinforcing our sixth pillar. Having said that, we also saw during 2022, the beginning of the monetization on the B2B contracts. We are growing faster than expected on that. We can check also on our figures on top line and also gross margin ramping up and ramping up very fast. So this is a good opportunity in terms of leverage moving forward. So as Blanco said, we are aiming to have 5% of this addressable market by 2028 and we are in a good trend to reach that. So moving to 2023, we didn’t release any figures for 2023. But for sure, the results coming from both segments will be stronger when we deep-dive on Continuing Education and Digital Service when you compare year-over-year will be a much better figures in terms of top line and also in contribution margin for the entire business and profit.
Frederico Mendes: Perfect. Very clear, Virgilio and Luis. If I may, just do a follow-up and I do apologize. But on the same topic, when I think about capital allocation, right? I understand that they’ve reduced still — take some margin for the consolidated business. So how do you think about, I mean, what kind of metrics you use. Now is the time to accelerate on and pressure a little bit more and more margin or I don’t want to go to a margin below a certain point. And then we need to — should be careful here. How do you think about this trade between higher growth eventually in and pressuring margins on the consolidated business? Thank you.
Virgilio Gibbon: Regarding capital allocation itself, I’ll start saying that we see a completeness, what kind of service we want you to serve right now. So the major points regarding capital allocation right now is the amount that we’re going to invest in new solutions, in new raw service that we put within the product. So we see it in terms of capital allocations itself, it’s more business deployments of new service, new product inside the existing products. So we’re going to spend with organic CapEx, I would say on that. Regarding the impact that we have on our operational results, regarding the digital itself, we see that 2022, it’s an year that we’ve got negative — sorry, guys. Start to repurchase right now besides the office, sorry about that.
But regarding the results during 2022, we’ve faced negative margins that comes from the digital segments. And regarding the ’23 ahead, we we’re going to talk with a little bit more next year. But definitely, 2022 was the lower point with the lower margin, the negative margins. And then we start coming for the positive side as the growth come. And as we gain scale and we do not made more business combinations, we start to grow — to do the business development inside of existing products.
Luis Andre Blanco: Fred, if I may add here. Just a rule of thumb, during — between 2020 and 2022, we have a lot of needs in terms of campuses to improve our campuses stronger the largest acquisition and also launching the Mais Medicos and seven new graduate campuses that we are working and operating under the IPEMED brands. So moving to the end of 2022, we have our CapEx close to 11% of our net revenues. So moving to 2023, all this real estate requirements that we have in the previous years. I think it’s much lower, so we expect them to have a lower maintenance CapEx with current CapEx on 2023 that would be something to percentage points 1 to 2 percentage points below 2022 in terms of cash flow and the great majority to be allocated as Blanco said, in product development to fulfill the roadmap of our six pillars on the Digital Health.
Frederico Mendes: Perfect. Super clear. Thank you, Virgilio. Thank you, Luis.
Ana Raquel Torres: So our next question now comes from Marcelo Santos from JPMorgan. Marcelo, you may talk.
