 All right, it looks like we have quite a few people logged on now, so I think we are ready to start. Good afternoon, everyone. My name is Paige Jarvie. I am the Global Marketing Coordinator here with PMMI. On behalf of PMMI, I want to thank you for joining the webinar tonight. Today's webinar is a series of webinars, seminars, and events that we have planned throughout the year for our PMMI members. In just a few minutes, we will hear from Luis Dominic. He is the Managing Director and Partner at MILA, and he will cover the findings on the latest 2017 report titled, Mexico Packaging Machinery Market Assessment 2017. Let's see here. Some events and services that we will have at ExoPAC Guadalajara. I want to go over just a few things for those of you that will be attending the show in just a few short weeks. We will have a presentation and panel of end users breakfast. It will be on Wednesday, June the 14th from 8.30 to 10.30 in the morning located at the Hilton. Luis will be presenting some packaging operations in Mexico, and the panel of end users will be sharing their point of view on general situations and drivers for investments in packaging operations. Great opportunity to network and engage with end users as well as fellow members. We also are offering our ExoPAC Guadalajara Agent Directory. You can email me for that if you are interested. We've generated a list based on agents that will be attending ExoPAC Guadalajara as well as local agents in Mexico. The directory will give you information you need to connect with packaging and processing agents, distributors, reps, excuse me, in your target market. Again, other complimentary services available at our booth number 2000. We do offer a daily happy hour from 5 to 7, as well as export counseling and market information similar to what you will hear shortly. We do have interpreters as well, private meeting rooms, Wi-Fi and internet, and a business lounge area. So be sure to stop by when you are down there again, booth 2000. A little bit about Luis. He again is the Managing Director and Partner at Market Intelligence Latin American Consulting Group based out of Mexico City. He's with us today to help tap into the opportunities and look further into the market in Mexico. Luis has extensive experience in analyzing the packaging, machinery, and capital goods sectors in Mexico, conducting many research reports for PMMI over the past 16-plus years. We have a great working relationship with Luis. He again is going to be sharing the updated findings from the Market Research Report, which is available to download in the full report will be available this week, hopefully. I will keep you guys up to date on when that full report will be available. Some quick housekeeping tips before I turn it over to Luis. I do want to bring your attention that you have entered the webinar in mute mode. And if you would like to ask a question at any time during the presentation, please enter it in the chat box that should be located in the lower left-hand portion of your screen. All questions will be read and answered at the end of the presentation. And again, the webinar is going to be recorded. So if you've missed anything or you'd like to go and replay, you will be able to access that on PMMI.org. So without further ado, Luis, go ahead and take it over. Thank you very much, Paige, and welcome everyone to this webinar from PMMI. We will be covering opportunities in western Mexico. We will be covering the whole packaging machine and marketing in Mexico. But the report that we produced is highly focused in western Mexico's region. A brief introduction. My company has been working with PMMI covering Mexico's packaging machine and market for over 15 years. We have produced reports, most of them were we interview end users from the food, beverage, personal care, and pharmaceutical industries mostly. And see their procurement plans, see the perception that they have on different suppliers according to countries of origin. See changes that they are seeing in the packaging machine or in marketing in Mexico. And we try to explain the dynamics of the sector and what to expect for the following two years. This report has mentioned is highly focused in western Mexico. As you know, ExpoPak will be held in Guadalajara from June 13th to June 15th. And the focus of this ExpoPak is highly concentrated in the western region of Mexico. However, the show also attracts buyers from other parts of Mexico. So the recent report that we completed, the key goals are to identify key trends in Mexico's packaging machine and market. We identified 50 packaging machine buyers in western Mexico who have short-term purchasing plans. And we obtained information from these users, from associations, from chambers, from packaging machinery distributors on the dynamics of the industry. And we tried to identify the key aspects and recommendations to assist PMMI members to increase their exports into Mexico. So I divided the presentation in four different chapters. First, we will take a look at the macro environment in Mexico. As you know, the behavior of the economy has a deep impact in packaging machinery. So we need to see what's going on in the Mexican economic and political areas and what the impact will be in packaging machinery demand. Then we will cover the packaging machinery market, market size, trends, how the participation of the different countries is developing over time. We will see the opportunities for packaging machinery in western Mexico and some recommendations or strategies for success. So I'll begin with a brief snapshot of Mexico. We are a country with 121 million people. That's where the 11th largest country in the world. The population continues to grow, however, at a smaller pace than in previous years. So our population pyramid is now beginning to become thinner in the bottom. Our GDP growth was 2.3% last year. In terms of GDP, we are the 15th largest economy in the world, measured at current prices and 11th measured in purchasing power parity. However, in GDP per capita, we run 66 and 64 respectively. This translates into Mexico continues to have a large share of the population living in poverty. So Mexico in reality is not a market of 121 million people. Approximately half of the population lives in poverty and they live in rural areas or in urban cities, but they are not consumers of the majority of the packaged products that we consume. Our inflation last year was 3.4%. The forecast for 2017 is 5%. We are receiving some pressures in inflation because of exchange rate fluctuations and also because there was a 25% increase in gasoline prices at the beginning of the year, and that's having an impact in practically all sectors. Last year we exported $373 billion. We imported $387 billion. So we have a small deficit of $13 billion. Mexico attracted $26.7 billion of direct investment and the Mexican pesos currently trading at 1867. And I say currently because it has fluctuated a lot in recent months. Mexico is a very open economy. We have free trade agreements with 46 countries. This represents that we can trade with practically no duties with 1 billion customers or over 60% of the global GDP. And 92% of our imports come from free trade countries. Mexico passed a series of structural reforms to change several sectors, some of them that were exclusive for the government like the energy sector. Now it's open to private participation. The telecommunication sector also had a reform that is seeking to make it more competitive. We had a monopoly of local telephony and one dominant player in cellular telephony. This reform changed the rules, allows access to the network to small participants, to virtual mobile operators and that reform is looking to bring more competition into the market. Recently AT&T entered Mexico and since they entered a couple of years ago they have grown significantly. We also passed reforms in the fiscal, financial, educational and political areas which are aiming to make Mexico a faster growing and more competitive country in the future. These reforms have opened the doors for wider direct investment attraction and the ultimate goal of the reforms is to create additional jobs. Mexico is right now under a cycle of favorable demographics known as demographic monos which means that the working age population is larger than the number of dependents. In Mexico 37% of the population is younger than 20 years old and 56% is younger than 30 years old. And also following the patterns of more developed countries there's a phenomenon of migration from rural to urban areas. Right now approximately 80% of the population lives in urban areas. Our key economic challenges right now are that the economy is not growing fast enough. Mexico is a country that should be growing about 4% per year and growth rates in recent years have been lower than 3%. In large part the oil sector has impacted Mexico's economic growth. The combination of lower oil prices and lower oil production has translated into a big gap for the government income. Petroleum in Mexico has for many decades been the cash cow of the government. It has represented a significant portion of the government income. Back in the 80s the oil income represented 50% of the government budget. Nowadays it's less than 25%. Actually last year the oil sector didn't contribute to the Mexican finances and not only that but it represented a cost to the Mexican government. The Mexican government had to inject over $2 billion to Pemex so it could meet its obligations with suppliers. So in 2016 there was more fiscal discipline. The deficit wasn't as large as in 2015 but it still represented 2.8% of the GDP. As mentioned we suffered a 25 increase in gasoline prices effective January 1, 2017 and that's creating an inflationary effect. There's uncertainty on the commercial relationships with the U.S. due to the NAFTA revision. Every time Donald Trump tweets something about Mexico or currency, it fluctuates and as a result of the NAFTA review and the policies of the U.S. government towards Mexico we are expecting lower flows of direct investment in the coming years. And also in 2018 we have presidential elections and typically during presidential election years investments in packaging machinery have been lower than years that are not of election. So here's a graph of the recent economic performance. The forecast for 2017.1.5% growth. These forecasts have been increased recently due to the economic performance during the first quarter that was better than expected. And also the NAFTA revision at the beginning we were talking about a possible cancellation of NAFTA. Now it's evident that NAFTA will be reviewed and now it seems that the changes in NAFTA will impact only some specific manufacturing sectors that are not directly related to packaging machinery. So we might have growth similar to 2016 in 2017. In this slide we explain in four graphs what has happened with the petroleum sector. The Mexico soil production passed from 3.3 million barrels per day to 1.9 million barrels per day. Our largest fields in the Gulf of Mexico called Cantarell and Kumalovsap have begun declining. So oil production from those fields will continue to decline in the coming years. Part of the energy reform is to bring private companies to invest in the oil sector and revert these decreasing oil production in the country. As a result of the decline in oil production our oil exports have become less than half of what we were exporting back in 2004. Oil prices as you know they fell in recent years from over $100 to less than $35. In recent months they have been bouncing back which is helping Pemex and it's also helping Mexico to have profits from oil sales once again. And in terms of wells drilled as you see back in 2009 we drilled 1,480 wells and last year we drilled 74 only. This situation is also expected to revert now with the energy reform and the participation of private companies. Our currency as mentioned has been very unstable. You can see in early November when President Trump was elected our currency devaluated in one single day over 15%. And then it devaluated further until Trump took office. Since President Trump took office our currency has been appreciating and now it's back to the levels it had before the election. And the revision of NAFTA my personal opinion is an agreement that needs to be reviewed. It's a 23 year old agreement. When it was signed the internet was just beginning we are now in a completely different world. Trade as a result of NAFTA passed from $290 billion in 1993 to more than $1.1 trillion in 2006 and 2016. NAFTA has allowed for a multi-layered integration of U.S., Mexican and Canadian supply chains. There are very specific studies that show that from every dollar that Mexico exports 40 cents are made in the U.S. So we continue to purchase large amounts of supplies, equipment, components, electronics, etc. from the United States and incorporating them into the products that we manufacture in Mexico. And the graph that I put there shows the manufacturing employment versus the output. We see that the manufacturing output it fell with the global economic crisis in 2009, but since then has been recovering and it has practically recovered the previous levels. But manufacturing employment has not recovered. Now there are studies that show that this is more due to automation than due to NAFTA. And in this graph we see the increase in demand for automation and robotics in recent years. Since the 2009 crisis it has increased dramatically. So this could be an explanation of where the manufacturing jobs are being lost. We don't see that the graph of manufacturing jobs in Mexico is increasing exponentially and that we are taking all the jobs lost by the U.S. These jobs are being replaced by robots and there's a very high correlation between this graph and the graph of manufacturing jobs decreasing in the United States. So when NAFTA is reviewed we're expecting slower FDI inflows into Mexico, especially from European companies who target the NAFTA market. There are several examples of European companies who set up operations in Mexico because they can import raw materials from all the countries where we have free trade agreements, including Europe, and manufacturing in Mexico to sell into the Mexican market but also to the North American market. The Mexican exporting companies are concentrating on diversifying their exports. The nationalistic sentiment increased in Mexico. There were several bi-Mexican and non-bi-American campaigns with all the rhetoric of the wall and the NAFTA revision and that in Mexico is a country full of bad hombres. That created a lot of Mexican sentiment but I would say also anti-American sentiment in a large share of the population. And we saw by interviewing companies that very few Mexican companies are placing investments on hold due to NAFTA revision. The main driver for packaging machinery demand right now is the dynamic growth of the internal market. On the positive side, we see that the internal consumption is growing very strongly. We have a mature retail sector that is increasing diversification. Supermarkets are now targeting different income levels with different stores and these stores require different presentations. So we see that that's a big driver for packaging machinery sales. Until now, Mexico has remained strong bringing foreign direct investment attraction. Actually, during the first quarter of 2017, we posted a record for foreign direct investment attraction since this indicator is measured. The formal jobs are at historical high levels. The government has been doing a good job in formalizing the economy and in creating new formal jobs. The energy reform is translating into new players, new worlds real, and in the coming years we expect a rebound in oil production. The restructure of Pemex and increasing oil prices are making Pemex a stable company once again. The Mexican government has strengthened its fiscal discipline and the budget is every time less dependent on oil revenue. Here we see a graph of retail store sales. They continue with very strong growth despite of the peso evaluation in the first months of the year and in the last months of 2016, despite of higher inflation and despite of gasoline price increases. During the first quarter of 2017, we saw that retail store sales grew more than 5.5%. In 2016, comparing same stores, they grew 5.3% and comparing total stores 8.5%, which showed that there's very dynamic consumption and other consumption growth patterns that remain in Mexico. Now on the packaging machinery market, as you know approximately 80 to 84% of the packaging machinery installed in Mexico is imported. We manufacture some mostly secondary and auxiliary equipment like conveyors, some wrappers, but there are also some Mexican companies manufacturing pouches, filling and closing machines, some cartooning equipment. But still, those are very few and the majority of equipment is still imported. In 2016, we imported $686 million worth of packaging machinery. That's 2.7% more than in 2015 and for second consecutive year is a high historical record. The total packaging machinery market in Mexico is worth approximately $831 million or was worth $831 million in 2016. The main growth drivers, multinational companies who continue to invest in Mexico, the beverage sector and especially the beer sector, which, as you know, are large breweries where sold to foreign companies to have an invest constellation brands like Heineken and these companies have been investing heavily in Mexico in increasing production to continue capturing international markets. The large Mexican groups are conducting strong investments in automation to increase their efficiency. And also we see a large number of small and medium-sized companies investing in packaging machinery to become more automated. Last year, if we split market demand by segment, the beverage sector was the largest buyer of packaging machinery in terms of dollar terms with 29%. The food sector represented 19% and typically the food sector is larger than the beverage sector. But in these last two years, the beverage sector has become the largest demander in large part because of the beer industry. The personal care and pharmaceutical sector represent 8% each. Packaging machinery companies who have local presence they imported 26% of the packaging machinery imported into Mexico with another destination of these machines. But we believe the percentages are very similar to those of direct imports. And other sectors like automotive, like paper, etc. represent the remaining 10%. If we see the imports by country of origin for second consecutive year, the U.S. ranks as first place. But it lost considerable share comparing 2016 versus 2015. Most of this share was lost to Germany that significantly increased its participation in the market. Italy remained in third position, followed by Spain, Japan, France, China, Denmark, the Netherlands, Sweden, Canada and other countries. In Mexico, the U.S., Germany and Italy they battled for approximately 75% of the packaging machinery market and the rest of the countries share the remaining 25%. In primary packaging, we saw that in 2016 Germany was the leading supplier with 29%, followed by the U.S. with 28%. In third place was Italy and in fourth Spain. And we see in the historical graphs how the U.S. had a big peak in 2015 that was represented mostly by the acquisition of American equipment by constellation brands for their huge expansion that is on the brewery in Coahuila. And in 2016, we saw that the U.S. lost significant participation, constellation brands continued bringing American equipment but almost half the value of what they brought in 2015. And Germany increased its participation by also supplying equipment to the beer industry, mostly to Heineken and also to AB in BEF or Grupo Modelo. In secondary packaging, we see that Italy became once again the leading country, the U.S. ranks second and Germany ranks third. And we see here that the participation changes a lot less than in primary packaging equipment but there's also very strong competition between Italy and the German machinery while the U.S. maintains a similar level over time. In 2016, the largest packaging machinery importers, we have one company that is constellation brands bringing $74 million of packaging machinery. And one company that was Heineken bringing $31 million. Four companies including Sabritas, Grupo Modelo, Kraft and Lala bringing between $30 and $20 million of packaging machinery into Mexico. And then another thing that we noticed comparing 2016 versus 2015 was that there was the largest diversification of companies bringing anywhere from $10 million all the way to $500,000 of packaging machinery. What do we expect for the coming years? For 2017, we are expecting a decline in packaging machinery sales, a slight decline. Why? The main reasons are because the beer industry, the huge investments from beer manufacturers like constellation brands, they're near to completing their plant expansion. Grupo Modelo just completed the plant expansion of a new plant in Yucatan. And they're going to begin with a new plant but the equipment for that plant will not come until the end of 2018 or 2019. So we're expecting significantly lower demand from beer companies. If we see the trade statistics for the first quarter of 2017, we see that packaging machinery imports are still up. They grew 6.5% versus the first quarter of 2016. Now we're expecting a decline in the coming months, one because smaller investments from the beer industry and also we're expecting lower investments from foreign multinational companies until NAFTA is reviewed and the new NAFTA revised NAFTA agreement is published. Also for Mexican companies, the currency fluctuations have affected decision making process. Companies that are planning to invest, as more companies are planning to invest $100,000 and suddenly they see the Mexican peso devaluate from $18 to $22 pesos. They put their investments on hold. Now that it's back to $18.6 pesos per dollar, they might move forward with the investments but I believe the majority will wait until seeing that the currency is more stable. And also we're expecting a decline in 2018 because of the presidential elections. And then depending on the outcome of the elections, the packaging machinery demand could back up fairly quick as it has happened in previous elections or it can collapse if leftist or socialist candidate is selected that doesn't bring enough confidence to foreign investors. Now we'll see the opportunities in western Mexico. First, I'll begin by explaining why western Mexico and why PMMI selected Expo Guadalajara to develop Expo PAC. Western Mexico has a population of 31.2 million inhabitants. The population grew 6% in the period 2010 to 2015. It's the hope of Mexico's agro-industries. The states of Jalisco and Michoacán have the strongest agro-industries in Mexico together with Sinaloa. And this area in particular is the state of Jalisco has been very strong bringing foreign direct investment and Mexican investment on the key industries that demand packaging machinery that are the food, beverage, personal care and pharmaceutical industries. In 2015, Mexico attracted $2.48 billion, the state of Jalisco alone, which is 8.7% of the total foreign direct investment in the country. During the first three quarters of 2016, foreign direct investments into the state reached 1.6 billion. Several of these were in food and beverage companies and also some pharmaceutical companies that invested in 36 projects of which 23 were new plants and 13 were plant expansions. 50 companies that we interviewed, they total investments in packaging machinery were between $150 million and $182 million for the period 2017 and 2018. These companies are 25 from the food sector, 11 from the beverage sector, 7 are personal care and 7 are pharmaceutical companies. Also Jalisco is home of the tequila industry in Mexico and the tequila continues to be a beverage that is growing internationally. So the tequila producers, they are expanding their capacity, investing in new lines. Recently, Jose Cuervo, for example, they went public and they raised $290 billion, sorry, $29 billion, which several will be invested in new plants. And Mexican companies from the food and beverage industry are increasing their investments in the region. Here are some of the key projects that we identified. So we see Chocolatera y Barra, who has a very old manufacturing plant right across the street from Expo Guadalajara, where Expo Park will take place. They will build a state-of-the-art new manufacturing plant in the outskirts of Guadalajara city. Mars is investing in a new plant for pet food in the state of Queretaro. Tequila O Julio is investing in new production lines. Bean Boy is investing in plant expansions in several states in western Mexico. He's a pharmaceutical, the largest Mexican pharmaceutical company. He's also investing in capacity expansion in the Jalisco plant. Ave in Beirut and Gopo Modelo, they will set up a new brewery. Most likely will be located in the state of Guanajuato. Kimberley Clark is investing in plant expansions in the existing plants in states like Michoacan and Durango. So as we see, there's very dynamic investments that will demand packaging machinery in the coming years in western Mexico. And that's one of the main reasons why PMMI decided to alternate the show between Guadalajara and Mexico City. So what is in the report that we produced, the detailed analysis of Mexico's packaging machinery market, and 50 company profiles. Each company profile includes a company description, describes the main products that that company produces and how they are packed. We put the images of their key products, the purchasing and investment decision making process within each company, and key contact information of the person, either responsible of purchasing packaging machinery or the first point of contact for new packaging machinery manufacturers. Some recommendations and strategies for success in Mexico. One is to partner a local company. In Mexico, we like doing business face-to-face and having a local representative gives you a strong competitive advantage. Visit your customers. Once you have partnered with a local company or you have a local distributor or rep, we also like meeting the people from the manufacturing plant where our machinery is being manufactured. So visit your customers together with your reps. Stay informed about the target market, their groups on the food industry and the beverage industry on packaging trends in Latin America, in LinkedIn. Use resources offered by PMMI, the Ex-In-Bank, the Small Business Administration, the U.S. Embassy. The state trade offices to speed up your business development efforts. Many companies they don't know but the majority of American states they have trade offices in Mexico. And these trade offices help companies from those states to develop business in Mexico. So these trade offices can help you to identify potential buyers, to identify potential agents. And those services are usually provided without any cost for the companies. So explore through your economic development organizations in your state. If your state has a trade office in Mexico, probably they can help you. The bow time and resources to your webpage it is your image to the world. I have seen a large number of companies not interested in distributing a state-of-the-art company that produces impressive machinery just because the webpage wasn't nice. They looked at the company, they saw the webpage, they didn't understand the quality of the products that they were manufacturing. They didn't see the machines in operation. They only saw pictures of machines that looked from back of the 70s. So it is important to invest in your webpage and be aware that it is your image to the world. As mentioned, personal relationships are very important for Mexican businesses. So try to visit your customers as frequently as possible. And visit Mexico as much as you can. I always say that we have very good food and that's part of the treat of coming and meeting face-to-face with your clients. Some strategies for success are taking into consideration that there is no NAFTA advantage anymore and that's not because of the NAFTA revision. That is because you're competing versus Germany and Italy and Mexico has free-trade agreements with Germany and Italy. So the competitive advantage that US manufacturers have price-wise because machinery imported from Germany and Italy had to pay duties no longer exists and now they compete in equal terms. Service, flexibility and reliability are the more important purchasing decision factors and in many cases are more important than price. So make sure that you have adequate service that you offer flexibility to pack different products in your machinery but also that you offer flexibility when dealing with Mexican companies. Mexican companies appreciate when you are flexible in solving a problem and not charging them a fortune. They appreciate flexibility when negotiating a price. So this term doesn't also apply to the machinery but also to the negotiation processes. Having local services is a competitive advantage and it's becoming a must. The credit options, payment schedules can be strong decision-making points. Credits on local currency are preferred and recently companies are preferring to lease equipment rather than to purchase because this brings significant fiscal benefits. So if you are well established in Mexico and are selling, explore through leasing companies offering your equipment in leasing. It's a very attractive option for buyers. As mentioned, flexibility when negotiating price is important for Mexicans. So save some margin for negotiation. Equipment service packages for purpose are a must and finally invest in developing relationships. I will finish with the number of companies willing to purchase from suppliers without a formal presence in Mexico's past disappearing. The companies are not willing anymore to pay for a technician to come from Germany or from Italy or from the United States. They want that if there is a problem with the machine respond to that emergency problem or malfunction. And it's worth investing in marketing. Most machinery manufacturers they invest in having the best machinery but very few invest in marketing. So look at having promotional videos, promotional materials, a web page in multiple languages. Those are things that help to position your machinery and your brand over the competition. And that's it for my presentation. So if you have any questions, please feel free to ask either by typing them in the chat box or if you want to unmute your line and ask a question please feel free to do it. Thank you, Luis. Yeah, so we will now open the floor up to our audience here. I've got a question. Hang on, Mark. You should go ahead, Mark. We can do you, Mark. You can do me? Okay. You will be able to get a copy of this slide. I do have a question from James, Holly. Setting up local offices, what is the local tax rate? And also is there a profit sharing for employees? So can you repeat the question? Sure. I'll read it here. For setting up a local office, the process for setting up a local office in Mexico is very simple. You need to go to the public notary. You need to get your tax ID registration from the Mexican IRS. Have a local bank account. And meet with all the tax regulations. The corporate tax in Mexico is 35%. We also have a 16% value added tax. That tax is recovered from what you pay that has value added tax. And there is profit sharing for employees, which is equivalent to 10% of the profits of the previous year. Now, there are different schemes where companies can lower that percentage. There are outsourcing schemes allowed in Mexico that do not make the company to share 10% of their total profits. I don't know if that responds to your question, Holly. We'll see if he has any other questions after that. Oh, yes, he appreciates that. Thank you. The next question is, do you have a percentage of food manufacturer exports to the U.S. or to the global market? I don't have the exact figures because there is not the exact measure of the actual food manufacturing of the total food manufacturing in Mexico. But there are estimates that show that 25% of our manufactured food products are exported. And a large percentage of that goes to the U.S. From our total food exports, more than 75% go to the U.S. market. Okay, great. Thank you. The next question is... Where do I see the peso exchange rate by the end of 2017 and 2018? I wish I knew where it will be next month. The peso has been fluctuating a lot as I mentioned during the presentation, and it might sound like a joke, but it's not a joke, it's reality. Every time Trump tweets something about a company that is looking to invest in Mexico and he tweets high-border taxes to that company, our peso is evaluated. And then it recovers when the account is not mentioned in Mexico. So that's an economic variable that has become very strong, that we don't know when it will activate or when it won't be active. I believe that the strong demand in Mexico is driving the economy. I believe that the private sector is the one making Mexico to continue growing and moving forward into the coming years. And as I mentioned, Mexico is looking to diversify its export base. The trade deficit in 2017 is smaller than what we have percent-wise comparing the first quarter. It's smaller than what we have on previous years. And the oil price is going up, and that also helps the Mexican peso. So I believe that by the end of 2017 it will close around the level of 19, between 19 and 19.5 pesos per dollar. And in 2018, the key shooter is the election. I believe that during campaigns the peso will be pressured. It can return to levels of 20 pesos per dollar. And it will all depend on the outcome of the election. If the party that is in power right now or the pan, which is the right party win, I see the peso returning to levels of 19 or 18.5 pesos per dollar. But if the left wins the presidency, I see the peso evaluating once again more than 21 pesos. Great, thanks. And we do have one final question from Mr. Holly asking how difficult is it to find a local manager or managing director, and what are the best ways to find good people to run a local business? Well, for a high level position, a managing director, a country manager, I would recommend using the services of a headhunter. Using the services of a headhunter you can compare different options, you can find people highly experienced in the industry and people who you can ask for references to potential clients on how they have worked with that person. It is not easy to find a managing director or a country manager for a packaging machinery company. The majority are very loyal to the companies they work for. So I believe the best way would be to hire a person that is expert in talent acquisition and have them find that person for you. Once you have that person, they have their network and it's easier to find employees and salesmen and people to form part of their team. But I believe the most difficult part is to find the head, the managing director for your office. Wonderful, thank you, Luis. And thank you for all of your questions. Just as a reminder, Luis will be at ExoPAC Guadalajara and will be presenting on Wednesday, June 14 during the packaging operation and breakfast and presentation. That will also have a panel of end users. So please, again, RSVP to that and get some more insight from Luis and have any questions that you may have come up between now and then answered by him as well. On behalf of PMMI, thank you for participating today. Our information is up on the screen if you'd like to contact Luis or myself. The information for the webinar will be posted on PMMI.org and I will also send a follow-up email detailing all of the information that will be happening at ExoPAC Guadalajara. And again, if you have any questions, our information is here and I will make sure to send you a link to the webinar as well for review. So everyone have a great rest of the day and thank you so much. Thank you very much, please.