B3 S.A. - Brasil, Bolsa, Balcão (B3SA3) Earnings Call Transcript & Summary

Welcome to the B3 arena, B3 Day. Those that had the opportunity of visit the premises, I hope you have enjoyed it. In the last 2.5 years, we retrofitted our premises in Sao Paulo. So we have just inaugurated the new building. I hope you have seen the operation centers, trading floor, restaurant as well. Now we're going to have a session of 1.5 hours with Q&A. We're going to talk about strategic vision. We're going to cover about the core business, the listed and over-the-counter. We're going to talk about new initiatives, data, services, technology and platform. We're going to talk about culture and also ESG. And we're going to then talk -- we're going to talk about the guidances that we launched last week for 2023. After that, those who will be here in person, we're going to have 3 groups. We're going to separate you in 3 groups and give you instructions where you should go, you're going to have 3 individual sessions with the executive groups so that you can get to know the strategy and B3 business and we'll be able to interact with everyone. I'm going to share the floor here, depending on the sessions throughout the presentation with 2 executives and so that you can know more about the road map that we're going to show here at B3. I'd like to initially to talk about the strategic vision. So I'm going to be very brief, but of course, we also have here. After 5 years of B3, we have a beautiful journey, and we'd like to tell you about it, a transformational journey, cultural and strategic transformation of this company, it was born 6 -- almost 6 years ago, with BBF&BOVESPA and Cetip. And we did not only change the name of the company, but also we effectively built a journey that what this company would be like, bringing together what the companies that brought us up to here as best practices. We began 2017 with this merger. We invested in the first year in integration with the focus with integration, capture of synergy and so on. And then we migrated a bit about the discussion of the development of local market, focus on local market. There were questions whether the company's strategy would expand in Latin America, where we had opportunity of growth. And then we -- in the cycle, 2017, 2018, it was very clear for the stockholders that we wanted to build a company that would be -- would have credibility, safety, operational excellence and also it could guarantee that it's a robust infrastructure to serve the needs of our customers here in Brazil, but obviously begin also to work the topic, customer focus, on customer segmentation, proximity, agility and products. This was part of our strategy that we wanted to maintain regarding safety, technology and operational credibility. One pillar with the other pillar drawing close to our customer. We launched our culture project as well. We're going to talk about in this transition, 2017, 2018. We're going to talk a lot about several initiatives. And we began to discuss also 2018, 2019, the positioning of the company regarding our actions, how we can work with this new capital markets in Brazil, distribution, the positioning of B3, B23 -- B2B2C. And in 2019, we worked several topics regarding products for individual. We draw closer to individuals and obviously, incentives and also tariffs and local -- with the local market capital and so on. We launched a number of initiatives of financial education. Education hub, it began platforms of information and also communication products with the objective of the goal of drawing the retail market close -- at that time was seeking for the first wave of the growth after the government transitioned 2019, the discussion of interest rate, which was discussed 5% or 6%, so pre-pandemic. So then we had the pandemic, everybody followed. We had an enormous market expansion. We had to then look to inside the company to face the increase of the volume of demand that we had in the cycle, 2019, 2021. And this is what the focus -- focused on in the cycle, assuring support and the growth of businesses that they should be based on technology and also training and quality of services in a historic cycle. So for the capital markets in Brazil. And everybody followed the amount of IPO, the arrival of new individuals, investors in variable income. At the end of 2021, then we resumed. We redeemed the pre-pandemic regarding expansion and diversification of our businesses. After 4 years -- 4.5 years of the company, we saw an opportunity of growth in the adjacencies. And then we began to prepare our -- all our structure for this -- so our framework for this. And then mainly based on data solutions through data governance so that we could work within this new universe of opportunities for data using data. And then we went to the -- we had the first M&A after the creation of B3 in 2017 with the fusion of [ Neoway ]. And then we began to develop this vision of construction of a business of data. Then we get to 2022 in this cycle, ending '22 and beginning '23 with a vision that we are at the new level of market capital in Brazil and all of the things that we managed to get -- came to consolidate the Brazilian market. And then here, we have 2 great opportunities and avenues for growth in our business, which is the solution of data and what involves technology platforms. Here, we now -- regarding strategy, we have an ambidexterity in this aspect. We have a focus -- a very big focus in core business, and the goal is to strengthen our presence in the core business of the company. And this means innovating within this business. It's a very broad agenda for the creation of products and modernization of the platform and agility in time to market to serve the needs of the market and if possible, anticipate the needs of all our business line that the company has so be it on the counter -- over-the-counter and listed. All these products before, the market effectively becomes -- has a stronger demand. This is a cycle that we have. Our products have a long cycle. We launched the product and we need some time for training, so we need to anticipate this regarding this need. This is a movement that we seek new sources of revenue and also the movement for protection of a possible competition coming from other supplier that might have this ability of foreseeing the market needs. So we do not want to lose this ability of foreseeing market needs. So we need a time to market to coordinate this with the participants of the market so that we can have this broad agenda and deliver it for all the participants in the market. Now we understand that, as I mentioned, we have an enormous opportunity of expansion and diversifications of our activities through data solution and analytics. We announced and now waiting for approval for the regulators for the acquisition of Neurotech. We had the assembly today. We had -- and this -- we are waiting for the approval of the regulators, and we see how this will grow in the adjacencies. And now we begin to design a vision that we also should participate for solution and technology services, technology platform around our business. This based on a culture which is very strong, we're going to talk about culture as well. We're going to talk about Project Cultura 2.0. We understand it, there is already a maturity in the company after 5.5 years, where we have to address certain aspects regarding culture that we implemented and created in this company. It's a culture that's leading us to make all the deliveries that we have for this company to advance. So I'm going to call to follow here regarding listed to vice presidents of the company, which is Juca Andrade and Mario Palhares. So you have the floor. I'm going to follow here Juca Andrade, VP of Product and Customers; and Mario, Vice President of Clients and Risk and Trading. We're going to talk about the listed core markets. Now to start off, one of the large -- biggest questions that we have from our stakeholders is sustainability regarding the stock market. We refer to these markets as markets that grew a lot, but we cannot have a mathematical view of perfect or precise mathematical view of what will be the turnover or ADTV daily volume that grew in the last years. So we brought here a few evidence that we have that the Brazilian market changed its level in the last years. So here, we have a graph with historic turnover from B3 in relation to other stock markets. We -- in 2019, we start with a turnover near 100%, which market -- with a market cap per year to 160%, here in the updated data 2022. And it's more sustainable since 2020 at this level over 150%. And also that the ADTV variation that we had at B3 of less 14% of this year compared to last year, which was a record year because ADTV was almost BRL 17 billion in the markets, as we call as also variable income markets. We had BRL 17 billion in 2019, and we had around BRL 30 million (sic) [ BRL 30 billion ] in 2020, BRL 35 billion in 2021. And now we are between BRL 28 billion and BRL 30 billion, which we will close the year. So with a drop of 14%, but very much aligned to the average of the market, global market, some of them are so growing and very far from the drops observed in more developed markets, more than our markets like Korean market, for example. We like to bring as well a bit of this ADTV of this turnover separated by client segment. Here, we see a change in level, which is significant compared to 2019, 2022. So both in the individual sector and local institutional and also foreigners. We see here to the left that the turnover in ADTV for individual was over 250% in 2020, starting upward BRL 3 billion to BRL 6 billion and going back to BRL 4.5 billion this year, understandable because we had a difficult year for variable income with IPOs, which was far beyond what we expected. We talked about in the beginning of the year or last -- end of last year that the interest rate would reach 2 digit, but we are close to 14%. So we see a leap from 2019 to 2022 that ADTV of individual started with BRL 3 billion to BRL 4.5 billion. So we saw the -- we are going to see the actions that to bring these person -- these individuals to the market. Now institutional also changed level. We had a smaller retraction. We started off from BRL 5.3 billion in 2019 to BRL 7.5 billion, which is an average of 2022 over 200% turnover velocity of local institutionals. So we see that with more customers, more funds, have operated in new markets, including the variable income market, but we're talking about PDR and real estate funds. The industry has also sophisticated its turnover and its exposition to assets in the market. And foreign customers started off with BRL 7.5 billion, up to BRL 15.9 billion. So the other 2 grew 50% and the foreigners -- foreign market -- foreigners sorry, grew over 100%. So we wanted to draw this high HFT customers and also proprietary groups who want to draw them closer. They have made use of the volatility in Brazil and the growth of liquidity of the Brazilian market to increase their participation in our market. So therefore, we will talk a bit about all the initiatives that we did with each group, each segment of these clients to give you an idea of the dimension why we again believe the market has changed level. I will start with individuals. We have a structural change, as said. We started to see this more than 5 years ago with a clear change on the distribution sector in Brazil. We have the technology, definitely changing the sector and distribution sector of asset -- financial assets and real estate. We digitalize giving access to products and services that before were just exclusive for those clients of high-income sectors of private banking and democratization was huge in the offer of these products for several segments. We had also a growth that was [ practiced in ] autonomous agents and we have another charge evidence in this. And we also did several incentives in our policy of tariffs in order not to have any barriers for the interest of new individual clients in the universe of the stock exchange. So this was back then in '19, '20, we exempt with the tariff of maintenance for the monthly tariff or maintenance of accounts in B3, and we did at that moment, the exemption of exclusive investors up to BRL 20,000 in the depository of stock. So we don't charge up to BRL 20,000 only after beyond BRL 20,000, we charge the maintenance fee. So this is a huge increase, the participation over here hub of education. So we have the hub of education of [ 20s for board ] invested B3 of this year. So we also integrated the [indiscernible] what we call the B3 investor, help investors. So [indiscernible] investors can invest all their assets in one place, which is the investors area and given initial space. So we believe that this might be one of the paths that CVM is mentioned as open capital market, a way for investors to be in the comment of their own investments using their assets in order to give us escrow, moving amongst brokers and so forth, this can be done through B3. So here on the right-hand side, we can see the movement forward advance of this amount of individuals on depository of actions on shares. We see blue 4,600,000 tax identification numbers of variable income products, not only BDRs, real estate funds, shares and stock, 5,400,000 accounts, and this number as well known was stagnated between '10 and '17, this figure of 500,000, 600,000 accounts of individuals. And also, there was a growth regarding the derivatives market due to the arrival of individuals to some contracts of derivatives, and this will reflect a bit the success of mini contracts launched by the company for some time now. And they were hugely successful with individuals operating, especially in mini contracts of Bovespa futures and mini contracts of dollar futures. So let's see if I forgot something. I didn't talk about all the income of products we have delivered with the launching of RLP and launching of dividends ETFs that explain further this combination of factors that explain quite well the success of the individuals world in here in B3. So we also -- now we keep on which individuals, and we are showing here the average balance, as I mentioned, with average of the positions of individuals here is BRL 2,000. Previously, 5 years ago, it was BRL 20,000. So it's the democratization I just mentioned, the increase of relevance of the inventors of exposure of individuals, more than threefold in growth and almost 4x, it has grown from September '17 to September '22, you see close to BRL 500 million in total inventories of the individuals. And it's important to mention that the new group, there's representatives or by crop, 2/3 almost a bit more of 1/3 I'm sorry, excuse me, of the new crops that are accountable for these inventories, i.e., we have this number was stagnated. It did not capture new volumes by '18. So you don't have the entrance of new volumes. So those who were, they were changing position, but they're not -- we did not have new investors. And here, we have new ones overall 16-fold are accountable for almost 40% of this inventory of assets here at B3. 42% of these investors, they have more than 5 active shares in their portfolio. And 1/3 already have investments made in different assets. 2/3 in fact, they have investments in different assets, not only the stock -- spot -- stock market. So they invest in BDRs, ETFs and real estate funds. And they diversify further their portfolios and they experiment more arrival. If the investments are below volumes, we show we have a company more democratized and obviously, the capital market being easy for the reach of potential investors. And a figure that I find quite amazing is that we have a figure on growing on growth of 1.5 million individuals doing at least 1 business per month. So these are those clients that bought actions stocks in '20 and IPOs and nothing else was done. So every month, they do at least 1 business. And this definitely is the outcome of the new sector of distribution, where upon autonomous agents or bank managers or different formats, the advisers on investments, certainly, they foster and talk and stimulate these clients to be more active on the management of their own investment portfolio. And this is quite amazing that we manage to show this, the size of what was this change regarding the retail investors arriving here at B3. So shifting to nonresident investments, foreigners. We have here an increase, which is substantial also outcome of the [ prospection ] of clients and technology that's available for this. Normally, those investments that are multinational that operate in how voluntary and different stock exchanges worldwide. So they are not those clients that differentiated too much regarding the way they perform. They're quite similar when they perform. So there's a bias and huge against these clients that, in fact, they are excellent in things and their bias towards the HFTs or proprietary groups of trading because due to the knowledge, perhaps it's this -- they are this -- they will have this bias, they foster net-ability. They have technology on their algorithms and the increase substantially the volume of business, which is the way that's more effective for you to reduce the execution cost, either for institution or individual clients. More net-ability, more investments, so in net-ability invested, it's more relevant that NEC or tariff that we are involved in the acquisition of stocks and shares. Therefore, we invest substantially and forced substantially that they come and increase their stake in the company and the turnover of the company. And here on the right-hand side, on the yellow bars, these investors of low latency, not only that we have high frequency of high-frequency investors. But some other investors that are more sensitive to price and volume, they are almost 40% of the average daily turnover. So it's stable turnover regarding growth of that we have reached 160%. We have worked in different aspects of tariffs. The first one, obviously, was the drop of the initial level for taxes levered on these clients. But now this is seldom when you have these clients being these tariffs of high-frequency clients. These are those clients reaching the higher deductions of the company because they are more sensitive and they reach the, let's say, the levels of deeper discounts or day trading, either one or the other. So many times, they reached 80% or even 100% when they are from market of different papers. So we fostered the arrival of these investors with the competitive pricing to generate this net-ability in our market. We worked on the subject of technology with such investors.

Just to complement this point here, 2 aspects that are relevant. The first one that we talk in-house, in fact, this EDS, they are doing a bridge, although short time between buyer and seller that sometimes not of those, the prices matching these HFTs. So sometimes they make things happen. They build the bridge because they hold the position for a short time. The main [ mantra of all ], they made a viable business, both -- in both sides. So do you have the spread? And the second thing that you mentioned, the program formador de mercado, we placed the exemption of pricing and tariffs in these clients, but we want to improve furthermore start looking the quality of the performance of these investors as they are improving the deep execution, the book and the possibility of executing this business. So we look at these things. So more and more, you will see later on, and we have some launching and we disclosed the program, not specific formador de mercado to provide our net-ability, which is the analysis, if that guy is there's a book or taking net-ability of the book. So more and more, we'll see if it is a way to [ incentivize ] the performance of these players.

And also, there's an important subject, it's worth mentioning the prospection of these players, they take time. So we have our international offices now, Chicago, London and Singapore, China, Shanghai. So we have here a cycle of opening with liaison with these groups. That's not ordinary. And many times, if these groups and companies of high frequency do not understand, there are no facilities, technology, competitive prices, they decide not to join these countries, not to enter here. So the opening cycle test simulations they take from 6 months to 1 year. So this evidence how much we are well succeeded by bringing these players, which are important for the maintenance of volumes and new products. And finally, we -- I think we have covered here most of what we had to do regarding this PowerPoint. Now moving for the local institutional investor. We have here an important growth regarding the fund industry in Brazil on the right-hand side, upper part of this PowerPoint. You see that this industry is closed and beyond in the moment, BRL 6 trillion, but even though quite concentrated in fixed income products. And we have done some movements regarding tariffs and products launching for these players and investors. And here, i.e. some products regarding fund listing. The need that these managers wanted to work with their liabilities and have the opportunity to list these funds that were negotiated on secondary market to end a bit with the culture of redeem a net-ability on a daily basis, and this seems how to be a huge strength. So the secondary markets do gain relevance and not redeems of those products of investments. We launched recently, strategy products, EDSes and UDSes that we are investing and fostering so the market understand EDS and UDS and appropriate more discounts, and let's say, the incentives that such products provide. Likewise, the arrival of BDRs due to the regulatory development that diversify and bring an opportunity that is wider for the performance, either for those funds of retail or institutional funds to diversifying products, launching products to assess with international markets and fixed income, international markets to BDRs of fixed income. So today, we have more than 1,000 BDRs and this seems to be a bit of the journey or sophistication of product that we will see in the next years in Brazil with the sophistication of the fund industry. So the lower right-hand side of the chart showing the number of funds in Brazil, it's growing more than 20,000 investment funds we have funds here that are those exclusive funds, but we have all that -- and let's say, more than 10,000 funds, almost 13,000 if we take into account savings account, it's not fixed income. So clearly, there's a trend of diversification and search for multi-market. Not multi-markets in the sense of hedge fund, as we said, but variable in the fund industry in Brazil. So we -- I think it goes to all the other 2 segments that I mentioned, individuals and HFTs. We have here an investment on the relationship dedicated to the group of clients. So it's the -- until we have an [ instructor ] dedicated to buy side. So you saw -- so we know this is part of the coverage of clients. And we have also here included the private pension funds, and we have the instructor of catering for the post sales because it was -- we will talk later on, it's one of the detractors or fosters of our NPS. So this clearly is a need to have a better service branded services. So I saw the clock is working, and I'm quite late in my presentation. So concluding here, we keep on having a medium long-term point of view and view we have a huge opportunity ahead of us. Obviously, we have what we call -- we have a win helping us in favor of us. So a macroeconomic aspect, which is very important in the exposure of the company. But definitely, there are those things that we do. We have a tailwind that helps to develop the market and including our actions. So we are -- we have a huge population that's now having banking accounts and especially for savings account, difficult to justify more than BRL 900 billion invested in savings accounts. So we have 15 million individuals surrounding the B3, being that 12 million exclusive fixed income investors, 6%. So this is a huge opportunity, 20 million, 12 million in fixed income. So here, we have a market cap regarding the lowest one in Brazil when compared to other markets developed. And -- let's say, and similar size of Brazil. So this is a positive view, medium, long term. And to wrap up our listed cycle, first, we'll talk about 2 things. First, we keep on believing that one of the big reasons of the success of listed markets is our capacity to, as I said, at the beginning to innovate within our core businesses. That's why we try to work in a pipeline of products and initiatives that are strong during the next 12, 18 months. It's an art we have to now coordinating all the agents and entities of the market before products are available. And giving priority to well done way. We will extend a lot in this presentation, but in the next one, we can address further these aspects. But just to give you -- in a nutshell what's in our chain, the platform block subject that with our [ stewards asking ] to CVM, which is the outcome of restructuring of Resolution 461 now name 135 of CVM, which is showing the compliance of those clients, let's say, that are impacted by the changes that we are fostering reduction of latency already planned until 2025 projects, let's say, the tech development and competitiveness in technology in the platforms of B3, focusing on international products. We are increasing this. Those we have in B3 '18 or '19, most of them was the export of the capital market of Brazil for the International Stock Exchange. At that moment, we had 3, 4 companies that were substantially that were listed abroad without the option of being traded in Brazil. Today, we have BDR, nonsponsor that due to 2 of these negotiable instruments that are close to 100 million ADTVs per day. So clearly, we want to increase the possibility and options of local investors to have access to products that in a way that's cheaper can be traded here in Brazil in our platforms. And also, likewise, BDRs of Brazilian company is trying to expand the importance of this during the inclusion of those companies of Brazil in these indexes. And also, we have worked in small and medium company subjectives and index in the history that we address if there is space for small and medium companies. What's the fostering our B3 for this to develop what are we enabling and it's part of our agenda. Fractional shares debate that's close to this, we will address this later on tokenization, digitalization of assets and what we can do to be competitive. So we are beyond the Huawei phase of crypto. So it's more hands-on and grounded, we will have to tackle the opportunity of tokenization on more traditional assets and those we know. And the extension of the time is under discussion, not necessarily we should go 24/7, but we clearly have an opportunity to expand the times B3 works. There is clearly specific demand for expansions of certain products and also the time for certain products. We have crypto futures -- future of crypto, it continues to evolve in this journey. We already have 10 ETFs and crypto in the future of crypto, which is under approval with the regulator. We also have the broadening of market training individuals and ETFs with dividends. These are some of the examples that are not only these. Obviously, this is just a bit of what I said. Some of the products that are listed that are in our agenda. But what is most important is the message that we have product team's discussion with clients of this prioritization and also this intention of being ahead of the market in terms of listing products and services that might not have an enormous demand now. But certainly, we've got to prepare this for the demand that will come in the midterm. Now also a topic that has always been very relevant as is in the agenda regarding the internalizations of the PO. I think sometimes, there is a bias or a simplicity, but we want to work with these aspects with the market and a regulator throughout 2023, so that we can clarify certain points that we want to think about deeply not only in the first level. Now some of the questions that we have the intention of answering throughout 2023 through discussion and debates and technical studies and also involved on several market agents and regulators is, firstly, if the size of the Brazilian market is appropriate for the internalization of POs, so if it is, clearly, there's analysis that certain markets allow, we got to use these markets that allow us or should we be more criteria in this analysis base -- to see if the size of the Brazilian market is adequate for this. The second aspect, who is benefited and who is harmed in a market where there is unrestrained internalization. So we have the RLP also, and we were very careful with the regulator to put it restricted and follow up on this, but is unrestrained. Internationalization is as positive, who benefits from this, who are those that are harmed with this? And also, is it fair these discussion we want to have and answer throughout 2023. What are the impacts that we have regarding the concentration of the distribution in this market of internalization. There is a concentration in net ability, is this positive or negative for the market? And how is this impacted in the cost and also the tariffs? Did you only have to look at the execution costs of the retail as an exemption of fee like foreign brokers that they use the [ FIII0 ] or the total cost of execution. What do I mean by this? As I mentioned, the highest cost when we bring market form is a net-ability at the top of the book. So we want to have more net-ability so that we got it exactly out, while what is the trade-off is to remove the net-ability positive or negative vis-a-vis at the cost of the tariff of the pricing. Do we only consider the fees or execution costs? This is another good discussion for us to have to act next year.

Just to supplement the detail here, what we see in the market, North American market, actually, the market would already burn internationalized. So you could negotiate this in the internalized market. The flood that happens in the U.S. almost has 100% or most of it of the retail market, it does stops in the wholesalers, which are the same HFTs that also supplies pricing for the retail brokers. So for this market for the individuals, you have besides the exemption of the -- there is an improvement of spread and also a bit of -- in the central books, for example, it's not so much favorable.

But I believe there is another thing, Juca that I'd like to mention is that when we talk about internalization, we imagine that take away the retail flow. There are 2 effects that are not discussed. One is one that you mentioned, which is going to do with Fed and price formation. The interest of the investors to remain in the bookkeeping, the bookkeeping. So what interest in the -- of the market is to spend time, money and resources to be focused only on the bookkeeping. These people work in several stock exchanges. There should be a better place for them to get money from, earn money. So going beyond the spread, we have a very important discussion of diversity, the quality of the bookkeeping.

Now I see -- I think well, let's go. Now supplementing what Juca and Mario mentioned, how is this discussion being done in other markets, those that have a trend to continue or also releasing internalization or is it a part of negative experience. According to our position, we must point out that B3 is not against internalization. It is against under-strained internalization. But with limits, it can be positive for the market as in the case of RLP in the mini contracts. Now another thing that really bothers us is that the internalization is a way of competition with B3, which for us is a very false argument. It's not true that internalization is a way of competition. If we have to have competition is with other platforms, other stock exchanges can compete under the same condition. Internalization is not a healthy way of generating competition because there is not -- this is nothing that the stock exchange can do to compete with internalizations of peer.

If I can just supplement information, the logic rationale is to compete with the public market. This is another little auto market. So it's taking away the flow from that bookkeeping and to put it in another place.

So the main takeaway message here is that the discussion is valid. It is important. It can, of course, be translated in the evolution of the Brazilian market. It's got to be done carefully with technical expertise to see what is added for the Brazilian market. So we closed the listed group here. Now I'm going to begin in the presentation with the part of over the counter. So with the Vice President of Operations here, we're going to continue you, emitters, and also depository of over-the-counter. So we're going to talk about the over the market for B3. Now showing a bit of the corporative debt, a market that is very core for our over-the-counter market. The stock of the debentures OTC grew approximately 50%. It has been growing healthy and the issuance of the debentures of several emitters, new emitters, not only the infrastructure emitters that has been growing steadily since 2020 issuers. And also, we don't only have debentures, but other instruments of fixed income growing like crisscross and also, we're going to see other assets bank assets, financial assets that has become important. And clearly here, we see an evolution of what we call the DCM market. DCM market in Brazil in the last years. In the past, we didn't have the possibility of an issuer -- Brazilian issuer to do an emission of the debt in a period of 2, 3 years. Today, this is very frequent. We have issued a 5, 7, 10 and over 10 years and it is in the agenda of all CFOs, the access to the capital markets of local debt, a market that calls a lot of attention and quite impressive. When we think that 2019, this market was in the secondary market generated a return of BRL 600 million. And here, we have a secondary market every day. So this market is being in a way, internalized. It's got -- there's nothing wrong about that. It's a market where the customers, the institutional funds and so on that are here, buy side, or even individual negotiation with the brokers. And this has opportunity for us to capture in the following years, be it here in the increase of the number of issuers, the kind of instruments and also the increase of the duration of the average debt and mainly the secondary market for the corporate debt. Another asset I would like to show is that the over-the-counter market, the volume of fixed income, we see that the interest rate is rising. We clearly see an evolution of the issuance of RDB, which is the bank receipts and also CDB, which bank deposit certification, BRL 8 trillion coming drawing close to BRL 5 trillion in 2019, growing with the interest rate and also the growth of last year throughout 2020, the stock of issued of exempt bonds, which is more common in the LCA and CRI and CRA in the financial institution, growing BRL 400 billion to BRL 777 billion in stock. Direct treasury, direct bonds also with the more risk market being more successful. It went sideward, it began to grow strongly in 2022 with 2 million investors and with a stock of BRL 87.5 billion. And another new market here, which is recently launched approximately 2 years ago, CPRs, for example, according to the new regulation, it grew over 100%. And which is predominant in new [indiscernible] services of the market. This shows that our traditional over-the-counter market has been growing significantly, and we follow with the strategy of drawing close to these markets. Everybody knows that we have for over 5 years, several competitors acting in this market, be it the fixed incomes, derivatives, secondary, we have depositories, the competition is much more common within this market, but we still maintain monitoring. We have a market share between 95% to 98%. We can have it with all -- we then estimate that we are over 97% of market share in the product. We certainly have a strategy -- over-the-counter strategy based on the operational leverage. We've always mentioned this. The idea is that the marginal cost for the fixed income clients will decrease depending on the volume. And also clearly, we have a table for discount for those who grow mostly that share with our -- also share with our leverage. We had the programs of incentive or direct treasury that became relevant in the fixed income line of many brokerage, and we launched new products. Mainly for digital banks, we launched, let's say a new platform for digital bank, which we call B3 Linha, a different demand from traditional banks, specific demand as well of consolidation, also cloud processing. So we also had encumbrances and CPRs, CB, for example, markets and new market in Brazil. This is the first experience that must draw closer to the regulated carbon market when we have this market in Brazil. Obviously, going to take a number of years, but we also dominate the CBios market. We launched also the public instrument. And so over-the-counter, the customization of the needs per customer, we understand the difference of the listed markets in relation to the over-the-counter market. We have the [ bias ] that part of the development is going to do with customized for the customer, so we can serve specific needs of a specific customer and not the goal of always standardized and make all the customers operate equally. Our over-the-counter segment, historically, is we adapt to the customers' need, and this is the mindset that we do not want to lose and we understand it is a competitive differential for us. And what else, the market that has been growing, the average of over-the-counter surpassed 18,000. We have over 17,000 autonomous agents. It's a high interest market and had contracted growth, which is very big for the following years. And lastly, strategic pillars of the over-the-counter market before talking about new initiatives, innovation within the over-the-counter in respect of how traditional it is, we have worked the B3 Linha for digital banks. In cloud mode, we are also working with credit cards and duplicate, and we want to have a more speedy team. And for the company, we have an agenda of reducing the time of delivery for over-the-counter customer, have a more flexible architecture, transition it to the cloud as customers are doing, though, we don't want to force a migration to this platform, which we think is more adequate for us. But we want to follow what the customers understand as being their time of movement and migration in their businesses to the cloud, modularization and architecture, which is part of the strategic pillars for over-the-counter, so that we want to have throughout the next 5 years to 10 years of convergence, again, to a new model of over-the-counter. But we don't want to force the customer to invest in technology, if this is not an adequate moment for him. And lastly, here, we see a number of innovations within the over-the-counter world. For example, we have booking -- we have digital process for formulation of derivatives, new calculation of this new platform as well. We want to develop a more flexible platform for that ADTV that I mentioned of 1.6 billion that we continued to grow. So we want a platform that serves the specific needs of each brokerage and the potential market as a whole and also receivables credit card and also private bonds, and also a way of working within other platforms so that we use our [ net ability ] capacity for our competitors even in a sense. But I believe that with this, I then conclude this over-the-counter agenda. I'm very, very delayed. I know we have about an hour now. I'm going to run after it. But [indiscernible] thank you very much. Now I'm going to call Marcos Vanderlei here regarding data. So I'm presenting you, Marcos Vanderlei, VP of the new [ Note ] Funding Infrastructure. [indiscernible] Neoway acquired 1 year ago. So we will talk briefly about our view of what are those business of data solution and try to make it tangible. It's a demand. We have received from many shareholders to make it tangible. What are those [ reasons ] that Neurotech and Neoway, even though not yet improvement, we're going to talk about Neurotech and its product and Neoway and what's our view for this data solution market. First, I would say, the first slide has shown when we disclosed the acquisition, it shows our objective showing that we have a first layer of capture and generation of data input in all the markets we are present; listed, OTC, vehicles, real estate, insurance markets. So we have a lot of access to data information. We cannot sell data. The world is not for data trading. But we have access to different data. Neoway was a platform that managed to capture public data through its big data platform and through also its partners within the big data platform ecosystem. The idea and view we have within this data solution business is to create products for the monetization and transforming this data solution and products that we can truly gain and make money and solve problems of our clients. So this -- here we have some examples of the 6 verticals we have identified and understanding there is an opportunity for monetization of this information, either being through data sharing IP, working APA data, crossing data platform-as-a-service solution, so with some problems of our clients. These platforms are for sales and marketing platform, risk and compliance, legal analysis, fraud prevention, credit management and capital market. These are the platforms. Before talking about making tangible these products with Neoway and Neurotech, what's our wish? Well, we have to go and reach. So we don't have guidance of recipe, but we want our revenue of services and data to grow regarding our business as a whole. So here, we have the main boxes. Listed business, market data, traditional stock exchange, the second bar, market data and analytics of UIF funding units and revenues. Neoway recently incorporated to B3 currently, the revenue 12 months that go beyond BRL 500 million. And clearly, we want this to grow regarding our total revenue. So this is the view that this business will be more relevant through timeline than it is today for our transaction or operation. So why we opt for inorganic growth within our company? Because we understand that we must keep in Neoway and Neurotech 2 assets we went to get in the market, and it took some time to do the acquisition of Neoway and Neurotech. They both have complementary characteristics to our DNA, so we can create a sturdy market of data solutions. So we understand that we have in B3 play. We are -- we have access to client, technology, exclusive data access and capillarity of capture and collection of data, external data, which is friendly, capacity to do with high volume of data, a huge development for go-to-market, launching products through a modern and effective platform and clients really enjoy and are satisfied. So this is one of the main proposals of acquiring Neoway and its clients and their opinion regarding the company. Kadu, it was an expensive boss. We have to justify. They liked very much the platform, so we did the acquisition. And clearly, this was one of the biggest surprise that we've got when clients gave us huge stimuli regarding the fact that they really enjoyed the platform. So Neurotech clearly has its solution through artificial intelligence and machine learning, and it's recognized by the market as the best engine for decision for credit solutions and fraud and classification of the financial industry of insurers. This strengthened a lot of our business and makes us being able through these 3 business union, a sturdy business of data solution is provided.

I think that before moving forward, I think it's worth saying and disclosing information to all of you that given this view that we have in this PowerPoint, all this is backed up by a sturdy process of B3 in the process of governance of such data, both B3 data and the data coming from both companies that we recently acquired. And then in the first slide shown by Gilson, this ecosystem [ aligns ] with system. These partners go through a data governance process within the B3 platform, so we can guarantee the source and stability and functionality and usability of such data. So this was a work huge within B3 that was done and gives you the backbone to scale up this with partners and companies that are part of the group.

And good point. I went so brief through the data capture products, but in the middle, we -- the unit is -- let's say, the mix and how this platform works with this data. Now here is the idea talking about some of the examples on Kadu and Marcos will help and jump in talking about the examples of solutions we have. Here, we listed 4 examples without giving names of products that Neoway and -- understand the Neurotech sales, to understand a better dimension how this liaison among these companies happen towards its clients. First, its sales and marketing case, Kadu will talk about.

And you mentioned something very important in the first slide, which is product. When we talk about 6 use cases you saw here, we are talking about the same platform. In many cases, same data variables that solve different problems. So this is point of the scale. Very important, the 4 examples listed here. The same place solving different problems. The second point, monetization of B3 data that we already have been incorporated to Neoway product. So the 4 examples, 3 have these 3 variables included in Neoway products and this view that we just showed, it's already happening. And fourth, we talk about 40% of the [indiscernible] market and compliance, which has more major products of the business linked to fraud, 5%, 4%, because there's a penetration huge about the segments. So this is important. So marketing, one of the biggest institutions, financial institution today, the platforms of Neoway on the managers of procurement, so analyzing the chain of these clients. And through the recommendation analysis of these clients, they can have a conversion that's higher than of those entity agents. And the monitoring included not only among the central managers. So we have been 7 years with this certain client in the portfolio, the growth rate of more than 100%. When we talk risk compliances, it's a win-win product, and it will be highly incremented with B3 data that we will talk about diligence analysis in depth. So I can look at tax identification number individuals and corporates. And this more specific. the analysis for both cases, the analysis for this client is done with sampling. So we can analyze our clients and suppliers and vendors, automated and monitoring. So it's a shift of paradigm, how compliances work in Brazil in a strong way. Legal, legal analysis perhaps is one of the most complex products in terms of technology. We analyze 400, 500 legal procedures we have today. And for this case of specific use, we do the management of the procedures of the biggest companies of telecom in Brazil. So imagine there is huge amount of procedures being managed. So we understand where these procedures can go based on a historical analysis and case law data. And fraud, the recent case, and it's growing by the way. We are talking about fraud on the acquisition of clients, onboard fraud. We have an embedded product with [ section 61 ] on variable data of use of [indiscernible], which is a Neoway product in the market that we've give an example of B3. And now with data, we can have a differentiated product from what is offered in the marketplace.

So thank you, Kadu. Now talking about Neurotech products. Marcos, would you like to jump in?

Yes. Of course. Thank you very much. Before talking precisely of the use cases, I would like just to do a disclose saying that Neurotech different from Neoway, that works in a market that's quite diversified. Neurotech has a huge focus earmarked for the credit cycle market in Brazil for retail, small and medium companies, where upon it basically has 3 business solution, which is the engine for decision, the process of information of algorithm for credit decision fraud and also within the insurance process. And here, example what we did now. We had a partnership with Neoway before the acquisition, where we have experimented some things. And in Neurotech, not different from it, we have a partnership disclosed since the end of '20, where we are having some tests. And this leads us to be a bit more certain about the businesses we acquired and the potential where we think we want to go. So coming to the cases. The first example is a financial one. A big financial institution in the process to maximize the credit approval process, but not only increasing it, but also taking into account the loss reduction process. Making use of pieces of information that they have, we reached a decision and a solution that the client poses a problem. Interesting, by the way was an important reduction of financial losses increasing 5% of KS of decision here. Another important case is for retail. And here, it's slightly different. Looking towards the process to improve the issue regarding credit approval, crossing better the credit limits of retail and looking for a process to reduce losses, maximizing the approval. There's an interesting case also, a big client of the financial market regarding collections. As Gilson mentioned, these engines, they are both for credit and collections and insurance, also maximizing the recovery of credit of this institution with an important increase in how it may inform and reducing cost and increasing the recovery in this case with its clients. And insurance, a work towards some insurance companies and all scalable. And the example here is a client, but it can scale up to a huge amount of these solutions that Neurotech developed, which is making a process of repricing insurance policies with the liabilities for auto insurance that was skilled here in a huge proportion for the insurance companies working on this area. So it makes more tangible the solution of each one of the companies.

Thank you, Marcos. Also, the purpose was giving you view that clients are, obviously, both companies have, A, important representativeness on the financial sector. We have a wide range of clients from different sectors. And when we talk that -- for sure, we added more than 500 clients of Neoway and Neurotech, clients from different sectors; telecom, pharma, insurance. So the potential is huge to complement amongst these companies to create this business regarding data. Marcos, Kadu, thank you very much. Now moving towards the next part, which talking about digital assets. I ask Nardoni and Jochen to be within this next part. Well, Rodrigo Nardoni, VP of Technology and Cybersecurity -- Rodrigo Nardoni, VP of Technology and Cyber Safety, and Jochen, it's B3 initiative digital assets. So he's one of the founders. Jochen, would you like to start talking about why we created digital assets, so we want to allocate B3 as the offer of tech infrastructure for the digital world.

Thank you, Gilson. During the last edition of B3, we presented the concept of what would be digital assets in the past. So the provider of infrastructure services on the crypto asset value chain. So I would like to talk about digital asset, but this crypto asset, cryptocurrency, but not only cryptocurrency, infrastructure for crypto-ish assets and crypto assets -- and cryptocurrency, I'm sorry. So in the past, it's a set of services we wanted to build on. And '22 was the building year. It was the year we incorporated the tax identification number within the B3 Group. So rendering services regarding to digital assets. And we divided the strategy in 2 pillars. The first one is crypto-as-a-service on the left-hand side, where we have those services focused on cryptocurrencies that with B2C buyers. It is a public to be catered by those institutions that want to render assets to crypto currencies to its clients, translating this. It is an institution that wants to offer crypto assets for end players and customers. There are several steps commercial liaison, either with the exchange of cryptocurrencies or OTC or cryptocurrencies. Typically, you have to send off dollars abroad and much of the net-ability is out of the current. There is a risk side of this. Recently, we saw this happening in the crypto asset world. And here, this service, we are selling to make easier the work of these institutions. So we take over the net-ability provider services. So we engage a partnership with crypto asset partners. The settlement process is used on the exchange rate and reais [indiscernible] and the API and sell this for the institution. Therefore, this service was built throughout '22. And it's mostly ready for this stage of pre-operation. On the other side, the other pillar, institutional infrastructure for digital assets. Here, we look at all value chain from the beginning, tokenization process, generation of smart contract, up to the escrow agent 24/7, making the settlements so forth. This work is still being built, and we have a plan of selling this service in models, so the client can engage just the module of escrow or the platform as a whole. The objective supplying B2B buyers for those with assets on portfolio that we want to make it toking, tokenize these assets 24/7. They need the platform to be more fit for this. So we can engage the service.

So thank you very much, Jochen. It gives you an overview. Yes, we want to work in the crypto and tokens world through simplification, cost reduction on the terms of operations. So the future to have a better cost -- and what it will be this regulation in the future with all our knowledge and license learn, making possible for clients not need to do all these investments. Again, I stress we want to be this provider as a service of options and services that clients. When they are B2B clients, can focus on capture of clients in order that we can use our infrastructure. And the second slide we want to mention here regarding new initiatives in IT platforms, showing the view we try to build that we have a -- we have several opportunities of performance of IT services that are anchored surrounding B3. And we have here a wish and view that we can, yes, search for new revenue sources or services surrounding our positions. So between B3 and its several clients, i.e., individuals, institutional clients, funds for investors, we have several agents that can participate. Our products through them reach the financial market for these clients and several, trading different types of services, very fragmented with demands of simplifying performance among B3 and these clients. So these vendors were close to autonomous vendors, managers, brokers, banks, administrators, custodians. And also, we clearly want to be partners of these vendors and these solutions. Some of them already within inside B3. We have to know how to mold them so that we can -- we have to invest more in these solutions, so they can be monetized. We listed a number of examples here that are under discussion at this point, white label and the brokerization services. We can help eventually or have solutions so that things become easier, so that the brokerage can also have the service with us, billing, microservices and so on. We can add and offer this to our customers, hub buy side, a number of initiatives of products that we want to put to the risk management control, margin control of products that can make the buy side easier. Now APIs of investment as a service -- of investment as a service so that the investment product can be offered outside the traditional pathways. You can buy in this investment in a retail platform. So you can purchase it from another platform and somebody's got to supply this technology. We understand that we have a bias to capture here part of this revenue, which is available in this new setup of services that we have here in the financial sector. We have several discussions that are ongoing, but we are still in the lab working some of these operations, some of these potential partnerships so that we can go to the market. Thank you very much, Jochen and Nardoni. I'm going to follow now with culture. I'd like to call Ana and Eduardo Farias. Well, Ana is Executive Director of People, Marketing, Communication and Sustainability Investment, Social Investment; Eduardo Farias, Director of -- Executive Director of Governance and also Integrated Management. The idea is to talk about the journey regarding culture of B3 in ESG initiative and also portfolio management of what we've been doing. Ana, do you want to start with?

Culture and ESG are together in this strategy. We're just going to show a different angle how this culture happened in practice. B3 has a very strong culture. This then reflect in the attraction or retention of talents that we see, which is very different from the many. In 2017, we had 2 separate companies, and we began to design values and costs. Today, we are among the best companies to work with in the several levels. We developed these cultural aspects and also with the custom easy of integrating people in an environment where people could learn. And this unfold, for example, in segmentation that we mentioned previously. So today, all our customer front is segmented. So we can understand very well what our customers want, and we then transform this in action and service propositions. Now an example that I mentioned not only regarding attraction and retention, something that's important for you to know is that during the pandemic, we maintain the levels of turnover lower than our peers, which was 20% on an average of turnover. This then shows the capacity of understanding our markets. We have talked about the strategy of agility, innovation, understand our customers easier. I'm going to give you an example. When we were designing segmentation of PF, we had to learn who this customer was, what he did, how did he consume. And Gilson showed that the average -- the customer had around BRL 20,000. So it changed then the way he consumes and who is this customer. So we had to change our product placement, our conversation in this network. So evidencing that culture happens in practice from 2022, we now intensify the conversation of agility, innovation and of ambidexterity and answering very fast to the market. Farias is going to talk a little bit about how agility and simplification and NPS works. But it's important for you to understand that we're going to talk more and more about this and how we're going to learn with these initiatives, for example, B3 digital asset and also which is core, which is very strong. Now we're looking at this ecosystem and drawing close to the customers' needs currently. And so B3 then maintains its positioning with a very strong answer competitively. This is a very nervous market, and we've got to be very close to the customer. So how this becomes -- turns into agility and/or simplification?

Well, for us to do all our initiatives, implement our initiative products and services, we organize at home, talked about this portfolio. So we brought our mindset of agility. Agility for us here is not simply execute the product fast. And hear the demand that we hear from our customers. We want to prioritize this internally. We have a very directed focus for the customer. And with this, we have our metrics for success. 2022 was for us a great evolution, which we built our OKRs. So we are very much focused on delivery. And we're very much -- as Ana said, what are the benefits these deliveries have -- deliverables have? Based on what we hear from our NPS, based on what we heard from our delivering of making business, obviously, we have an enormous diversity of several products and services that we offer. We look to over-the-counter. We look at listed, data and also adjacent products. We have individuals, and we have several portfolios that we have here. And how do we segment this client and how we do the best delivery and how do we then make this speed up? We worked a lot on this to improve the culture so that all are focused on a solution of one problem to one customer and not specific for each of the areas. And in the company, we already have over 1,000 people, completely dedicated with agility model and most of it impacted on this model that we have in-house. With this, we had an internal initiative, which we called Simplifica. Clearly, we want to simplify our internal processes so that we can make a better delivery to our clients. We are in our 11th wave. These are 3 month ways where we choose training initiatives so that we can clear the path so that we can become lighter, more agile and deliver things faster to our customer. We thought this initiative would be fast, but we believe that this is still a path that we have to follow so that we can serve our customer better.

We have heard a lot of this and we have measured. So most of it we have, it retrofits this portfolio. So we hear internally and externally so that our platform becomes much more agile and much more simple.

So I want to point out what Ana mentioned. We mentioned that -- we also mentioned NPS in 7 verticals of the customers. So in all the customer segment we work and we are already in the excellence zone of NPS. Obviously, we did not -- we didn't begin in the zone of excellence, but we have improved this. What we don't want in this company that we have people become monopolized or we become too comfortable in or laid back in this view. We want to be prepared to compete in any scenario with the competitors here in Brazil, abroad. And so we cannot have some sort of layback situation in this journey. So NPS, methodical migration to the agile methodology, culture, is all part of this journey. And we are, at this moment, working strongly, this last point mentioned by Ana. So more autonomy, evolution, speed and hierarchy. Now let's go to ESG. I think our positioning, we always say that when we talk about several aspects of governance, mainly beginning with governance, but also about ESG acronym.

We have a double head, so to say. We can explain what this is exactly the ESG, regarding ESG positioning. Before we begin, we have to have very good practice. We are a listed company. Therefore, we have to use the best practices. We are very much connected to good social and governance, good practices and environmental practice. But obviously, what had got to more with us is probably governance and environment. We have a number of practices from the Board to the entry level. We have 3 women in the Board, and also working with diversity. And this was a journey built in here, and we have programs of entry in technology for women. So we then, for these women supported by B3 Social, we bring women in technology, helping their development in-house. We have our private social investment, where we have over 50,000 input because we have also diversity and also socio-emotional integrated NGOs that work and give more efficiency with this kind of social investment. We have management of human capital, which is best-in-class here, which is very clear indeed. And also, we have worked once again on other aspect that goes beyond social, but it's also within governance and very strong cybersecurity. We have a very strong agenda that are donated and conduct and Farias as well, which is part of the agenda. Now this is done and acknowledge, and we can see our performance within the B3s that we have in this portfolio, but also regarding ESG and proxy voters as well. So we are always in best-in-class regarding ESG practice, then we can manage to do this role outside, which is induction of our products and services. Our induction process has got to do -- that the company raised the bar, improved their practice examples that we like. So is the new market that happened 20 years ago where we talk a lot about the rights for minorities. At that time, it was kind of strange. But today, we cannot imagine a market -- this new market without this new market. And ESG, where we proposes that the company then practice -- have good practice of diversity. We have entrepreneurial diversity. We have broken 2 records of the number of registration of companies and applying as simulated for ISE, and we're reaching already with over 70 companies, ISE B3. Now the first stock exchange, they had an issuance of SLB and the first company was just as [ vinculated ]. Our market is audited externally less than 9% of the companies that do this annual report have external auditing. We have a number of actions that has -- that we have done to position our company. Now highlighting 3 of 3 great blocks. In this next year, we are launching the indices [indiscernible] B3, connected with SLB goals. We have worked strongly with ESG data. And what difficulty that we have, how we analyze and standardize and compare this data. B3 already has a platform, which is called ESG Workspace. We have all the data of the company that are in the ISI with comparative responses. This makes us understand the new market and raise the bar of what people are doing. And the carbon market, as Gilson mentioned, we work on several fronts in this respect since the taskforce is to do how -- how to make this carbon market more robust so that we can compete worldwide. And also, we look at our ability to work with registration and transparency for this market. This is what you can expect for next year.

Well, you accelerated here. Farias, thank you very much. I'm going to call in Andre to close and just highlighting our guidance that were published last week.

Well, I will try to do this fast so that we can have time to talk afterwards. Well, we show that we -- we published our guidance on Friday. The first disclaimer I'd like to say is that these figures that we saw of guidance for next year, they still not contemplate financial information regarding Neurotech. As Gilson mentioned in the morning, we had the approval of the stakeholder for the transaction, but we still need some conditions to be fulfilled, mainly regulatory approvals. So these figures do not include Neurotech data. As soon as this is done, we will sit, revise the figures for Neurotech and incorporate it in the guidance and communicate it again. It's worth saying that a more general comment, which most of you have noticed is that we also have the trend more and more to migrate of expenses that previously were classified as CapEx to OpEx. This has got to do with this new way of using to develop projects with many MVPs, application of methodology of agile and the journey of adoption of cloud. So this makes us -- we have less need for the own servers and more expenses with the cloud. So there is a more structural migration regarding the expenses with a heavy weight in the last years for OpEx. Now for next year, we announced on Friday the interval of expense adjusted for core business of BRL 1.4 billion to BRL 1.5 billion. We said that we must grow in our core business, something around the inflation. So this is our goal regarding investment. And showing you a bit of what I mentioned previously, lower -- slightly lower volume of investment in the core in the tune of BRL 180 million, BRL 230 million. And the adjusted expenses of new initiatives. Now, I'm going to give you a little bit of more information about these new initiatives. A very close -- which amount will be BRL 595 million to BRL 665 million here, serving to the market demand. We began to give an investment guidance of CapEx in these new initiatives for next year. We estimate an interval of between BRL 20 million and BRL 60 million and expenses back to billing in line to what was the projection for this year interval of [ BRL 240 million to BRL 250 million ], which is equivalent. This is -- it's important to say that this is a part -- a small part of our revenue. And that usually the growth -- the performance is directly pegged to the behavior of these revenues. With this, we close the guidance with disbursement of BRL 2.435 billion to BRL 2.775 billion. So with an interval of depreciation and amortization and the guidance both for financial leverage as well as distribution of the net profit. We have a leverage of 1.9x, the EBITDA. So distribution of most part of our cash flow generation, which would correspond to 110% to 140% of the net profit. So it's part of the partnership, so partnership of net profit. Now regarding these expenses, there is a migration of CapEx to OpEx and that blocks of new initiatives, I believe it's important to highlight that approximately half of these expenses are related to initiatives that are of project of revenue that are beginning now. The initiative that Jochen brought is an example of this. It's a new initiative that's still beginning. It's still in the maturing phase. So there is a set of expenses. And many initiatives do not have direct effects on the revenue. So although the investments related to the individuals that are in this group, there isn't a direct revenue, but it does contribute to several parts of the rest of the business. And there's another block that represents approximately of the other half of this group, which are those expenses related to those companies that we acquired recently, that where you have business that are more mature, obviously, with the potential of growth quite substantial, but they are more major business. But also they bring a base of revenues, almost the same size of the expenditures. So most of these business, either they reach a breakeven or close to the breakeven. So it is important to give more visibility regarding what we have in this big block of new initiatives and new business more incipient, what are those in this first stage or initiatives that don't bring an indirect impact on revenues and those business that are more major in growth and expansion phase. This is it.

Well, with this, we wrap up our first section.

So I don't know we have to wait next section. What I would like to suggest is the following. We are a bit beyond the given time. We are slightly late, 10 minutes to be more precise. For those who have enrolled, we will have the group meetings now. So my suggestion, those who will attend group meetings and have questions, please, I focus to do the questions and post them during the group meeting and those who will not be part of the group meetings. So I think all here that presented with me, they will be with the group meetings at least 30 minutes. So those that might not be able to be part of the group meetings and have a question, we will open the floor for these guys. So we are open for the questions.

I think everybody will be part of group meetings, which is really good. So it was just -- to be nice, let's say. I think most of them are going to be part of the group meetings. So in order to abide by the given time, let's split to the group meeting. So the RI will be helping us to set up the group meetings. We have 2 rooms in the building on the XV de Novembro. And one room here. And groups will not change. Who will go throughout the groups are the executives. Once you are in the room, just stay there, don't be concerned. We are those who will go from room to room. So thank you very much for your attention. [Statements in English on this transcript were spoken by an interpreter present on the live call.]