Moving onto Slide 20 which deals with the loyalty program, in 2012 we achieved our aim of turning SMILES into an independent company as Smiles S.A. ready for an IPO. In February 2013, SMILES S.A. filed an official request for registration as a publicly held company and for authorization to hold an IPO with the CVM, the Brazilian SEC. Today we will wait on a positive sign from CVM to consider our plan. GOL believes that the separation of the business units will add more value to the group. 2012 was marked by measures to strengthening the product.
As you can see on Slide 21, several new products were launched, including SMILES Shopping, miles purchases, the new ticket redemption platform of international airlines products, exclusive flights, a new pricing framework, and new partnerships, among other changes. In addition, with SMILES recorded annual growth of 9% in its client base.
I will now hand you over to Edmar, who will represent our results for the period.
Edmar Prado Lopes Neto - CFO: Good morning everyone in the U.S. Good afternoon for those who are here in Brazil. Thanks Kakinoff. I will move over to Slide 23. Here we highlight the main factors that affected our results in 2012.
The first one is the growth in the fuel price over the year; 18% on average, and especially in fourth quarter, we faced the highest price ever for a quarter in terms of jet fuel in Brazil. This is beyond R$2.4 per liter, and this level of price remains for the first quarter of 2013.
The second issue that we would like to highlight is the depreciation of the real by 17% against U.S. I do remind you – remember you, that in our cost structure, we have 55% of our cost related to the FX. So, these two items alone combined had an impact as for fuel alone of R$680 million in 2012, and remember, that also we are replacing our air fee; I'm talking only about price. As announced earlier in the year we saw also the airport fees going up by 30%. This is another R$164 million that were impacting our results in 2012 beyond 2011.
The fourth item we would like to raise is the Brazilian GDP growth. As everyone knows now that we started the year with a percentage of roughly 4%, the numbers was coming down along the year and at the end we saw – clearly saw 0.9% increase for sure there are the effects of our revenues because still in Brazil demand is very sensitive to price. These factors alone will reinforce our commitments to go deeper in the cut. Please be aware that when we announced the first guidance for the year, we were still looking for maybe a shy growth in terms of fee exchange, but the economic environment did not help us. So we have moved back in the exchanges. Therefore the number of client is 5.4 and the guidance that we have for 2013 are very much aligned with the view that we have of the market size.
Also because of the guidance that I just mentioned, we have decided to anticipate Webjet grounding the planes. We have planes to ground and to return them on possibly throughout 2013, but because of the market size there is the demand which was very big, and also on the cost side, record jet fuel levels, we decided to ground on the planes in November. Also, at the end of the year, we saw that there was an impairment of their expense.