[MUSIC] Now you know pretty well now what need of funds for operations is and working capital is, right. Need of funds for operations. The needs that I have to operate in my company. I need receivables. I need inventory. And some of that is finances by payables but then that is called need of finance for operations. And working capital is basically the capital that is left after financing the long-term assets. And that capital left is used to finance the NFO. Now, let's look at the diagnosis of the problem. Let's remember what we said before, which is what happens is that as we grow, the need of funds to operate are growing faster than the working capital. Now, basically the growth of an NFO is bigger than the growth of working capital. We each time we need more and more friends, and our working capital, our source of funds is not growing as much. That's where we need more and more credit. If we are to compute that for Polypanel case, look, very simple, I just put here the forecast but then I left blank the part of the uniform working capital. NFO we said that is receivables plus inventory, minus payables. And if we do that for 2008, 9 and 10 we actually get that, right? 730, 913, and 1441. Now, that's the NFO. And working capital it's basically as we said, equity plus long term debt, minus fixed assets. And do we do that for 2008, 9, and 10, and we get that, right. Do you see that the difference between the NFO and working capital is exactly the credit needed in yellow there. So take 2008 for example. The NFO is 730, right. Working capital is 261. So the difference between the two is 469 which is the credit needed. And then the same applies for 2009 and 10 and actually the previous years. Now, it might be helpful to plot it and to see what's going on, right? Just NFO and working capital, you plot it and you'll see what happens over the years. See what happens with the working capital over the years. It's a pretty stable line. It's not growing that much, it's growing. Let's see what happens with NFO. You see what happened with NFO, NFO is growing way faster than the working capital. And the difference between the two is actually the credit. So when you think of a graph that is common like this what are you thinking about? What do you think is happening? It is like a Shark or like a Crocodile, right? And, If you keep doing this over the years, at some point the crocodile will open more his mouth and might be able to actually smash you right. So, it is clear now in the growth that the growth of NFO is actually bigger than the growth of working capital. So, we have a good diagnosis. Growth of NFO is bigger than growth of working capital. And we step back for a little bit and say what would the diagnosis should look like. Well the diagnosis has to be it has to have some characteristics. The diagnosis has to be first, it has to be concise, it has to be brief like keep it simple, right. Otherwise, you won't be able to transmit it to management, you won't be able to transmit it to your clients, you need to be able to say things simple. Second, it has to be concrete, it has to go to the point like avoid generalities. We need to go and go straight to the point. This one has to be clear, it has to be understood by everyone. The less technical terms that you use, the better. And fourth, it has to be complete. We can't have a partial explanation. You need to have a good complete explanation there. So, with this in mind, we only need to go for an action plan. Now, once we have the diagnosis and we know what's happening, we know what this diagnosis, what is the sickness or what is the illness of this company. Then we are able to say, which actions can we take to change this. So that the company is actually sustainable and healthy in the near future, and this is what we're going to see next. [MUSIC]