BRF S.A. (BRFS3) Earnings Call Transcript & Summary

Good morning. Welcome to BRF Day. It's a pleasure to be here with you to talk about the future and to see how BRF is prepared for the challenges. In 30 years, the world will have 9.7 billion people. And according to FAO studies, in order to meet the growing demand, the supply of food will have to double. The challenge is not only feeding the world but to meet ever more diverse and complex demands. Research show that there is a wish for healthier and sustainable food, easy to use and with taste. According to Kantar, health and well-being are in the center of global habits of eating and drinking. Combining those trends is not easy for any company. However, BRF is one step ahead in this journey. The company has strong brands with a culture of operational excellence, integrated systems and operates with interdependence, more than 90,000 employees, more than 260,000 active clients in more than 130 countries with about 10,000 integrated farmers and more than 40 plants. All this BRF ecosystem is founded in principles and commitments to take quality food, safety food with integrity and sustainability to millions of people across the world. And the BRF team has been working with a lot of education, discipline and consistency in a journey that has been enhanced as of 2018 with a new management cycle. Some results are known to you: The company reported an increase in profits of more than BRL 3 billion in 2 years and a leverage rate that is half of what we reported in 2018. It evolved the ROIC by 76% from 5.80% to 10.20% and double the percentage of revenues in Brazil from innovation. However, the progresses have not been financial only. The turnover in the leadership, for example, went from 28% in 2018 to 8% in 2020. In terms of operational efficiency, BRF has shown a reduction of 71% in losses and 40% in idleness. BRF has been showing consistency in its strategic commitment. And during the pandemic, all its knowledge about the management of this chain, which is living and complex, has been put to test during this period with a lot of interdependence, financial discipline and innovation. In addition to continuing delivering the necessary results to be stronger in the present moment, the company has also devoted itself to writing a new chapter focused on the future. And this is the plan we are going to get to know today. [Presentation]

Good morning, everyone. Thank you very much for being with us today, a moment that marks a new stage of success in the BRF history. We're here to begin a new chapter of our history, a chapter that speaks about the future. But before moving on, I would like to acknowledge and thank all BRF's team and to the Board of Directors for having brought BRF to the level at which we are today. We have worked with a lot of energy and humility as well, close to the operations and listening to all of those who are part of this long, living and complex chain. With that, we learned the importance of interdependence, the adequate balance between push and pull and efficiency and dynamism of our integrated planning. We have established and implemented processes, procedures in a robust management system that deploys targets across the entire company, seeking productivity and efficiency at all stages of our chain. As of today, with memory and the strength of our legacy, with the learnings from the recent past, we look into the future. We project BRF to the next 10 years. What will this BRF be like? A global company of food with ever more practical products and tasty, of high value added and with a portfolio of strong brands with quality and reliability, taking the leading role and operating as a transformation agent, always following our purpose of promoting a better life from the farm to the table. The results that we have delivered demonstrate that we have the discipline and the maturity to start a new cycle of growth. Over the next decade, we will grow with safety because we know and we understand the importance of interdependence, and we know how to manage all this living, long and complex chain. We have a robust management model in full operation with clear guidelines and aligned with our long-term strategy, a model that is in place in all areas of the company and that gives us flexibility to make decisions at the right time. We work in an interdependent manner and connected with habits and customer -- customs of our customers. We are on a growing digital transformation journey, and we will operate in all channels and expand our operations worldwide, taking food where the consumer is and in the way the consumer wants, aware and even anticipating their demand, offering convenience and ensuring availability no matter where. Digital transformation is part of our daily lives, of our processes, of our initiatives and our culture, which is in constant evolution. We have competitive advantages that are hard to be replicated that support our growth strategy for the consistent and sustainable generation of results and return to shareholders. These competitive advantages are the basis of everything we do, and we will do it. Today, you will know more about each of them along of our event. We will talk about our people with their best knowledge and commitment. As to the current digital transformation, we will cover, and we will also talk about on the continued search and our obsession for productivity and operational excellence, efficiency in all links of the chain as to the sustainability strategy and about the strength of our brands and our commercial structure, something that no other company has or will ever have. We are ready to start this journey that we will take in steps what will bring confidence for us to keep growing consistently and profitably. We set clear goals with ambitious results to get where we want. We will do this consistently with financial discipline, continuous operational efficiency and excellence in its execution, keeping our essence, all that aligned to the commitment to look after people and the environment. We look into the future with enthusiasm and trust. Today, half of our revenue already comes from added-value foods and with the strength of our brands, and we want more. We will reach over 70%, generating more value to our shareholders, our consumers and for all society, always in a sustainable manner, making our part for all without neglecting our planet. This will be the BRF of the future, and this is what we will show you today. [Presentation]

It doesn't matter the language which is used. History shows that companies are made by people. Investing in human capital is one of the best foundation for growth and evolution. And this generates engagement and solid relationships in the long term. Companies with high levels of engagement increased by 20% the return to their shareholders according to a Gallup research involving 7 million employees across the world. People are the basis for the construction of a high-performance company. The first competitive advantage that is presented by BRF in this transformation journey. That goes through digital transformation, involving processes, culture, tools and organizational culture.

Hello. People and digital transformation were fundamental to our new chapter of growth. And these will be ever more relevant. Let's talk about people. Let's look into the future. So it's important to understand what's the starting point. In 2018, we have a scenario of high turnover with our leaders. We needed more stability. We formed a senior team which is committed to the long term of the company. As you saw, we reduced this turnover by over 70%. But it's no use only talking about the past. So let's talk about the future. In order to ensure in the future and also to have the talents required by the company, we have implemented an annual plan of -- succession plan. We identified more than 400 potential leaders, and we are always looking for diversity in our leadership. In Brazil, we are a role model in the Board of management. We have [ to women ] in their representation. In 2018, we were -- we had [ 16% ] women in leading positions. Today, we have reached 22%. And today, we announced a commitment to reach at least 30% of women in the high-level positions by 2030. Diversity enriches with different viewpoints, different opinions that would contribute to innovation. In addition to that, it makes our leaders to reflect what society is and what consumers are like. We have assumed recently, together with other 10 companies in the consumer goods companies, a public commitment for racial equality. We have important steps to be taken and will spare no efforts to do this. Another important point for us to reach the excellence level as a global food company is that we have to have a strong culture to attract and engage, develop and retain the intellectual capital of the company. And with that purpose, we have implemented the best management -- talent management practices. We strengthened our employment efforts, and we attracted more than 60,000 candidates to our company. We have also investing strongly in our teams. We have about 10,000 contents in our digital academy. We nearly doubled the number of people with educational support at the company. We have partnerships with renowned educational institutions for our technical areas. We are going to close 2020 with about 2 million hours of training hours, and we are going to increase this number. In 2021, we are going to increase by 40% of investments in training, and we are going to double our exclusive digital content by 2025. And we are offering an engaging experience in the streaming platforms of the market. Working at BRF is a reason for -- to be proud of. Only 7 companies (sic) [ companies in Brazil ] were listed as the best employers according to Forbes, and we are the only food company in Brazil among those companies. In the latest survey that we conducted, we saw that 96% of the respondents said that we are adopting the correct measures to fight the pandemic, and BRF is one of the best companies to work for, with a strong culture, with leaders who are ever more prepared, effective talent management and a focus to promote an inclusive and diverse environment. We're ensuring the engagement of our employees, and we are providing the intellectual capital to deliver the results in the future. And speaking of the future is also to talk about digital transformation. At BRF, digital transformation is used. Technology to transform our culture and processes and tools, accelerate the business that is in place today to build the business tomorrow is to be digital internally to go to the market, relate to different stakeholders in a digital manner. One year ago, we started the construction of this digital journey. We increased our investments in technology by 20% in 2019, 40% in 2020. And for the next 5 years, we have built a solid road map of investment initiatives in technology together with each area of the company. We have 52 projects underway, which are going to provide support to the productive strategy and growth of the company. 19 initiatives have already delivered more than BRL 30 million in results. To conduct this plan, we have already trained more than 1,200 employees in agile methodologies, such as QUAD, design thinking, among others. And this is just the beginning. We are going to invest at least BRL 700 million in the next 4 years. We have a digital transformation strategy incorporated in all areas of the company, and you will notice this. In the area of people, we made headway in the digitalization of processes. We also promoted the digital inclusions of more than 70,000 employees that started to access online services and information. We have virtual assistants that would -- received more than 20,000 tickets. And we have been working in a new way in using technology. We want to use all the potential. And we created a digital lab to have cooperation across all areas of the company to increase the connection with start-up partners, and we want to double pilot -- the number of pilot projects. Our progress has the recognition of the market already, and digital transformation is key. We are going to make it even faster because it has a direct impact on our productivity, the way we work. And it enhances even further the relationship with our employees, clients, integrated farmers and investors. We have a strategy of digital transformation that involves people that will promote the growth of the company. BRF of the future will be more digital, inclusive and diverse. We will grow with the support of a strong leadership that will make us different from the other players of the market. [Presentation]

[ Mrs. Altemia's ] example in the city of Montegrosso shows how the use of technology positively impacts productivity and improves the relationship and every link of the chain. 81% of BRF's integrated farmers have experienced some level of innovation. These are initiatives that combine artificial intelligence, big data and machine learning apply across the industry with our 4.0 systems. This is the key for excellence and operational improvements, another BRF initiative.

The culture of excellence is in BRF's DNA. This is why we are permanently moved by the challenge of ensuring operational excellence using our programs and actions. We minimize our losses, improve our input processes and our overall procurement. And more than that, to incorporate the 4.0 industry into our operations and actions, I'm talking about a set of initiatives that could generate up to BRL 3 billion in gains by 2025. About 60% of this decline in spending comes from better using our resources. We will leverage our suppliers across the world and increase our number of electronic bidding. We'll decrease the number of emergency purchases and exclusive vendors and improve and optimize using materials a better way, reducing waste and improving animal nutrition. In order for that to occur, we have what we call SEO, the Operational Excellence System. This brings us a set of assumptions that allows us to improve productivity, become more efficient and reduce costs. And it's also widely replicable across the world. It also ties into our digital processes. By 2025, all our BRF units will operate at an advanced SEO position. It's no secret that we have complex operations. From the farm, we go to our plants and then distribute to over 130 countries. This is why we have been investing in ways to improve our processes. BRF is completely involved in its digital transformation. We have great investments and cutting-edge technology to improve even more our processes with safety and in a sustainable way. Our company has great competitive advantage when it comes to innovation and 4.0 industry. We're talking about an ecosystem that includes 10,000 integrated farmers, over 50 plants and involves over 70,000 people. An innovative action and adoption of new technology grants us exponential gains and could be replicated across the entire chain. We are in full digital transformation process paid by consistent management and a long-term vision. We're implementing our Industry 4.0 project in 2 fronts: our digital plan and our intelligent plan. Our digital factory provides speed in our processes, providing more gains. The smart factory brings this Industry 4.0 systems, such as online integrations, providing insights into advanced analytics models. At our ag farms, we advanced with our Industry 4.0 processes to collect data, which were previously collected manually. Digitization improves our conversation with our integrated farmers network, which generates more value to our partnerships and helps us improve our engage -- their engagement with our processes, especially in sustainability. We are pioneers in actions that improve animal well farm -- welfare and security. This is integrated into our products. We can offer our clients and customers safety because we have, from breeding to genetics, all of the safety. This ensures a level of difference -- of security that sets us apart. We can use sustainably our water and energy resources, preserving animal welfare and biosafety. When we look to 2030, we see that our operational safety is very important to our growth journey. I've been talking about our strategic and long-term strategies. Now when we talk about short-term strategies, let me show you some of our 2021 commitments. We want to reduce by 3% our use of energy and water. We want to mitigate by 40% our inflation and reduce by 25% our operational expenses, by 34% our factory expenses and increase our operation gains by 3%. That way, we'll be ready to proceed looking to the future.

It's impossible to talk about the future without acknowledging the importance of combining knowledge and technology to improve this, which is yet another one of BRF's competitive advantages: the management of its production chain from end-to-end, including technology across the entire process.

Here at BRF, we have an integrated chain from farm to table, which generates important gains in synergies. We work in animal genetics and the formulation of feed and go to the house of our customers to deliver our products. Every step of the processes, we work to generate efficiency and identify and fight losses. We're working in an increasingly volatile market, but our processes, structures, tools and especially our team gives us a competitive advantage that's all the greater and leaves us less exposed to changes in commodity prices. We work the BRF way. We watch how the market is moving. We anticipate scenarios, generate consistent information and work speedily. We are in different and very specific fronts. We will ensure supply at a competitive cost. We will work focused on information, tools, physical structure and be very close to consumers. We've developed exclusive econometric tools and have implemented digital tools for sales that will develop into an online and off-line center via [ our grain app ]. This platform is already managing our supplies across the chain. That way, we've gained speed and reduced our costs on daily rents. This already allows us to analyze satellite images. With that, we've identified opportunities. The evolution of the system will allow us to track every direct purchase we make. All of these data, images, information from the market and from our team are available at a consolidated way in our smart center, allowing us to manage them in real time. We're also developing artificial intelligence tools that will help us with our purchases. Our financial and business tools will ensure greater operations in future purchases. Improving our financial models will be even closer to our farmers with choices to meet their needs and bring us loyalty, increasing our direct purchases. Segregating our sales and operational structure, we will gain focus and dynamism. We'll increase direct purchases, and we'll also use [ sorgho and DDG ], which have already provided savings of over BRL 200 million. We'll increase our storage capacity and invest in flexibility and gaining more agility, being ready to receive all sorts of raw material. We'll increase our ability to crush soybeans and [ meeting by ] 50% our internal oil production. The whole structure is to maintain and expand our competitive advantage that we already have in the market. We've talked about the importance of grains, but we're a long chain requiring interdependence. We have an experienced team that is undergoing a number of cycles in this industry. Our operations were tested this year during the pandemic and showed its resilience. We gained even more confidence. We've made specific arrangements. We've operated in flexible shifts, increased our logistics capacity and, more importantly, implemented an integrated decision model. We managed to face this period with a lot of connections and guaranteed operational continuity with low impact in the face of the situation we were facing. Another example of this integration is our agility in the face of new license plans. We took up to 60 days since licenses were granted to start production. Now we can do that in a matter of hours with great agility, the result of the integration of all links in our chain. We've improved all our supply and inventory management models, which has been crucial to face and overcome this pandemic. The new models will improve our services and serve well our customers and will incorporate smart solutions to connect information from end to end. By implementing an integrated planning system, our demand forecasting models will guarantee integrity and more transparency in our information. We're developing an integrated information center, which will allow a systemic vision of our expanded chain, which considers not only the links in our chain but also other external factors which impact us, such as the climate, the actions of competitors and foreign exchange variations. The purpose is to anticipate scenarios and further enhance our decision-making process. In addition to all of this, we have developed a review model of our footprint. This will support our growth, and we will consistently advance. We will find the best answers for an effective growth, ensuring operational flows and taking into account aspects of sustainability and access to labor. We have already identified growth potential and are advancing rapidly. This will also help us to define growth paths in the long run. Initiatives like this ensure integrated management from end to end of our chain. We also have major logistics operations handling over 350,000 tons of products every month in addition to all our inputs and animals. Our management and operations team is doing a great job, allowing us to optimize productivity continuously. We've already managed, for example, to reduce loading and unloading times by 50%. This came through a [ black belt ] program that's already been recognized and awarded in technical forums. We are continually reviewing our distribution network, always seeking logistics and tech sufficiency. Our sea freight today uses an optimization system which is regarded as the best way by international organizations. We've implemented a B2B portal, digitized our entire order cycle, eliminated paperwork and gave more visibility. Our client can track his entire order from placement to delivery. We became swifter and closer to our clients. In 2020, we reached the lowest accident rate in our history, strengthened our transport, health and safety program, and we will continue to progress, developing new initiatives with transportation companies and deliverers. We will expand the use of embedded technology and focus even more on accident prevention. We're striving to obtain a rate of 0 accidents. In all these fronts, we are being supported by our digital initiatives. We already have our [ commodity smart center ] in operation. The analysis of satellite images is already a reality. Automation software already runs a large part of processes. Our operational transport control center allows us to monitor 100% of our fleet. Our planning is supported by optimization models. We are making headway in implementing our Logistics 4.0. Using artificial intelligence and data science, we're building our integrated information center. Looking at all of this, our logistical operations, our planning and procurement of commodities will increasingly be a competitive advantage for BRF. We are on track to get to 2030 as one of the largest and best global food companies. [Presentation]

Clarice's family has already noticed that investing in sustainable technology brings good results. And the benefits of combining growth with sustainable growth, we see that the benefits are not only at the end of production. More and more, this topic has been very relevant and influences the purchase decision. Look at the figures. According to IBM Research involving 19,000 people in 28 countries in June this year, 57% of consumers are willing to change their purchasing habits to reduce environmental impacts and 77% consider [ more -- or moderately very -- moderately or very important ] for brands to be sustainable or environmentally responsible. So adopting policies and adopting guidelines for sustainable practices are all essential for the growth in the long run.

Our purpose to provide a better life is connected to our commitment to society and the planet. That's why the growth of BRF in the next 10 years will be aligned by the sustainability strategy, which permeates all business areas of the company. Our promise is to ensure the sustainable growth of our chain. Along those lines, our efforts of sustainability are going to be ever stronger in 2030, highlights in the monitoring of [ green chain ] and the sustainable use of water. We are going to ensure the traceability of 100% of biomes in the Amazon, and we're going to keep being a pioneer in the well-being of animals and ensure that we're going to have 100% in collective areas for piglets. The use of water and the use of energy of free, clean sources are going to be our priorities. Our objective is to reduce by 13% to the use of water and encourage the use of clean energy. 93% of the energy we use comes from renewables. In 10 years, we want to have 50% of our energy consumed coming from [ self-generation ] from clear sources, such as solar and wind energy. By 2025, we want 100% of our packages to be recyclable or biodegradable, encouraging the circular economy. As to social aspects, we reinforced transparent dialogues with society, and we are going to keep -- we'll keep on developing the communities and encouraging innovation and knowledge. As to social's perspective, we want to have more education and inclusion. We are going to invest at least BRL 400 million in social actions up to 2030, contributing to the development of communities where we operate. We believe that a sustainable company is built by actions and consistent choices. We promote the listening channel. We listen to employees, integrated farmers, investors, clients, consumers, all society in general. We define clear targets, indicators to provide transparency to this transformational journey. We are going to offer transparency to the consumer using monitoring in the purchase of the purchase of grains and a sustainable agenda against deforestation. Our targets will be consistently monitored by our sustainability committee. We know what we have to be done. We are on the transformation journey. We are determined to be transformational agents in this story and leaving our sustainable footprint in everything we do.

We know what is to be done, what is right to be done. It's very important to understand this commitment to the future. And we have to understand that this topic is taken seriously here. BRF has invested, in the last 2 years, about BRL 500 million in actions that reinforce the respect to the environment in all production chain. The company is on a pioneer journey, providing well-being for animals with cage-free chicken use, and we do not use antibiotics as growth promoters. And the company is a signatory of the Compact Global (sic) [ Global Compact ] of UN. And the company is listed in B3 in the sustainability index. The Global CEO, Lorival Luz, is here at the studio, and he's going to tell us about how this commitment to the environment is reaffirmed every day. Lorival, good morning. Thank you very much for being here. What does it mean for BRF to be a sustainable company?

Well, Marcio. Good morning, first of all. First, I would like to say that I'm very happy to be here today with you to talk about our future vision, which is aligned by sustainability. To BRF, being sustainable is more than a commitment. This is part of our essence. The plan that has been devised by Neil and presented by him just now is a plan that involves all the company. It's also something very important. As of 2021, the target ESG sustainability will be part of our compensation programs, all the variable compensation programs of our company. We will have specific targets that are going to be deployed for the company in order to ensure that the plan is being duly executed. In addition to that, we are creating a new vice presidency with institutional relationships, reputation and sustainability in order to provide a clearer focus. For this position, we have invited Grazielle Parenti, who since 2019, has occupied the position of Institutional Director of BRF. And she will now have the mission of providing continuity to his excellent work that has been done so far -- that was being done by Neil so far. We want to be an example, and we want to be a transformational agent. Our plan is to grow with sustainability, generating value to everyone: society, the environment and investors.

It's important to notice how consistent the ESG practices are at BRF. I know that there's something new for you to disclose to us today.

Yes. Today is a very special day for all of us and also to our community of integrated producers, which amount more than 10,000 across the planet. And to disclose this news, I would like to invite somebody who is very important and somebody who is already part of our journey. And she's been -- and this person has been with us for a long time. And I'm going to invite Andre Brandao, President of Banco do Brasil. Good morning.

Hello, Lorival. Good moring, everyone. Good morning, everyone who's attending this event. It's an honor for me to be here with you. It's such a very important event. Thank you very much for having invited me. I think you have already mentioned lots of interest things. Your event is great. And Banco do Brasil is a bank for businesses. And we have been partners for more than 50 years now. And it's a bank which is very aligned with the ESG principles. So if you allow me, I'm going to make some comments about what we had in our meeting. About 45 days ago, I visited the main partner of Banco do Brasil. And I visited you, my partner and friend, Lorival. We talked about partnerships. And Lorival showed me this agenda, showing the importance of the sustainability at BRF, and we started discussing what we could do. And then he raised some issues, and then we wondered why not try, as he mentioned, to change all the energy grid of all integrated farmers of BRF so that everybody will use cheaper and renewable energy. We discussed this topic, how we could go about it. And then we imagined -- we visualized all the integrated farmers using solar energy. And we even visualized where to place the solar panel. And today, I'm here to announce what is going to be the first step of this dream so that we can start. So we are launching a new program together called Banco do Brasil and sustainability, which relates to a fund to the facilities of the integrated farmers. So we developed an internal solution. We have no support from any government in the agribusiness, and we devised the solution with 0.65% fund with 1 year of a grace period. And we want to involve the integrated growers to be part of this. And I believe that this partnership should be encouraged, and I would like to be part of it. And I would like to be part of this transition to renewable sources of energy, which are more efficient in order to decrease the cost of production. So I'm very happy here. This is just the first step. Lorival and I are aligned, and we are determined to make this process go further. I would like to be ever more present with you. And we are going to involve other mills, other facilities, anything we can do in order to improve the company costs and also to direct to a more sustainable energy source. I would like to thank you for the invitation again, and I wouldn't like to take much of your time. I would like to say that Banco do Brasil is the bank for the agribusiness. And I wish your event to be very successful. Good luck, and I hope to see this materialize.

Thank you, Andre. It's a pleasure to have you here. Thank you very much for having accepted our invitation to be here in our event to talk about this very important topic and also to talk about this partnership to make a sustainable future come through. And this program, only to add some information, we are going to start with the integrated farmers at first. And about BRL 200 million is going to be available to our integrated farmers. And we assume the commitment of making some -- or installing some solar farms. And this is our focus. We are very happy with the project. We are confident that our producer and partners are going are adhere to this project. And together with the bank, we are going to build those solar farms in order to meet our own demand and also to ensure that we will have 100% of our energy required by our businesses met by renewable sources and with high level of generation. So this announcement reinforces the leading role we take and the commitment that we have to encouraging the growth of our integrated farmers. And we have this commitment to sustainability to our -- in our long, complex chain.

Thank you, Andre Brandao, and thank you, Lorival, who talked about the energy efficiency for the integrated farmers of BRF. We are now going to start a new chapter of the future that starts today. Every [ pack ] trend shows that BRF has knowledge about the market. And we also understand the consumers and the market, know brands that take quality food to the consumers, keeping a relationship of confidence and affection.

One of the major competitive advantages of our company is to have a place of strong brands and credibility. We have iconic brands which are recognized by our consumers, and we have a leading position and relevant in global markets. The quality of the strength and the credibility of our brand is not something that can be bought. It's something that is conquered by serious and correct work. Confidence and trust is what moves people to choose our brands. Hence, quality is essential for this choice. In Brazil, we are on the table of 9 out of 10 Brazilians. We reach 95% of the municipalities. For our projects to reach our consumers, we have a structure, which is difficult to be replicated, more than 260,000 clients, which are supported by a direct sales structure in a logistic network at a global level which is specialized in refrigerated products with a single and unique capillarity both in the Brazilian market and in the halal market and international market. No other companies in our sector has this capillarity. In addition to that, our brand's dialogue are conversed with different generations of consumers. Our products are part of your daily life at different moments. To mention some of them, Sadia is the most valuable brand in the food segment in Brazil, evaluated in $2 billion. It's the frozen food brand which is most remembered in 2020 and the favorite of consumers. Perdigão is the brand that grows in terms of preference in the past few years. It's the one that entered more households in 2020. And Qualy, Qualy is the margarine brand which is preferred by more than half of Brazilian. And most remembered one is an absolute leader in the category: Banvit is a brand that report nearly 80% growth in market share. It's the leading brand in Turkey, the second largest halal market in the world. It has 39% of preference among consumers in the country. In that market, we are also present with the brand and local production. We are also leaders in halal market, where we are present -- we've been present there for over 50 years with Sadia as our local consumers refer to what we mentioned as Sadia that hold 38% of their preference, and it's top of mind in the region. We are going to be present wherever our consumers are and the way they want us to be. Our brands are key factors in our growth strategy. And that is why we are going to strengthen our brands even further, adding value, innovating and making our business ever more profitable. We are going to maintain and expand our relevance and leadership in the markets where we operate so that we are going to be ever more present in the lives of our consumers. With a focus on consumer, we are going to follow our path of innovation and growth, launching new categories, products and services, all differentiated. In order to build this path for our growth we started from a detailed analysis of the trends and consumption habits of -- across the world. We evaluated different regions, channels, and we prioritized according to the main consumption trends, growth potential, scale and synergy. And based on all this, we defined 4 priority avenues. The first one is to strengthen our business and propel our brands, our relevance and leadership in the markets where we operate. With a focus on adding value to products and services, we worked in a determined way in search of productivity and operational efficiency. The second avenue is to expand to new markets, channels and categories. We are always aware of the consumption trends and the needs of our consumers with the broad portfolio and with greater added value by means of agile innovation using recognized and innovative brands. The third avenue is to increase our internationalization. We are going to have local prediction in different regions in the largest consumer centers. We are going to seek [ synergy in energy and portfolio ]. And our fourth growth avenue is to connect and serve our clients and consumers according to their preference channels, enhancing the digital platforms. At BRF, we are going to have the consumer in the center of our strategy and in our decision-making processes. We are going to deliver what the consumer wants, how the consumer wants and where the consumer is. This is our ambition in our starting point. [Presentation]

We believe Brazil is a market full of opportunities, both to increase per capita income and to develop new business categories and models. We will lead the change in food consumption in Brazil focused on added value, increasing our revenue with profitability and effectiveness. We're the market leaders in 9 of every 10 Brazilian home. We have the brands customers want the most. And we have innovative products with high capillarity and differentiated products. These are some of our competitive advantages which are difficult to replicate. We'll be even more innovative with 10% of our revenues in 2023 coming from new products and services in line with the needs of our different customers with high added value and excellence in its execution. Our brands have different value propositions that complement itself -- oneself's value in different audiences. Sadia, one of Brazil's most valuable brand with growing preference, expands its penetration with new brands added to the welfare trends such as Sadia Bio, Sadia organic, Sadia veg and strengthening our premium lines with Speciale and adding even more convenience with the release of our mac and cheese. In Sadia, our strategy is to advance our innovation to be in line with new trends and be present in every consumption opportunity, create new experiences for our customers and advance our brand. Perdigão, the brand that has grown the most over the last few years, has expanded its penetration and consolidating its position in the industry with its strong flavors. With Perdigão, we will expand our presence in situations such as barbecues. We will also expand our value-added segment with Perdigão [ Ultra ]. Qualy is a market leader which has been 15x the top of mind margarine brand. 1 of every 2 Brazilians prefer our brand. We'll advance to new consumption occasions, adding value to the margarine segment with functionality, and strengthen our use in culinary uses. We will increase our portfolio of brands with Claybom, Deline and Sofiteli to advance in the spread lines with products such as cream cheese and cheese. This will be done in stages. Seeking new avenues for growth and placing our customers at the center with new channels and services, we adopted 3 assumptions: the first one, marking some trends and across generations; the second is high potential for growth; and the third, synergy with our business. Our focus is in customers and meeting different demands and needs throughout the day with solutions which are healthy, flavorful, practical and sustainable. And we'll remain focused in expanding the categories where we operate. About our strategic priorities through 2030, the demand for ready meals is growing worldwide, driven by changes in lifestyles. Customers want more and more convenience every day. That desire creates a great opportunity for growth for BRF, where our absolute calling will be put to practice. The demand for ready meals is not being supplied by the market, which is walking sideways. The scenario is completely favorable. 53% of working citizens do not have time to cook, and 61% of Brazilians state they do not like cooking. We will seize this opportunity with our knowledge of food options, creating new lines with our ever-present quality in addition to growing focus in health and sustainability. Being customer-focused means to give them what they want all the time. In addition to that, Brazil offers a great potential for growth in the swine products market, which is 4x higher when compared to other protein sources such as beef. When we compare per capita consumption in more mature markets, there is great potential for development locally. Both the United States and Europe show a per capita consumption that's more than double that of Brazil. This has attributes that sets it apart, great cost effectiveness for consumers. The space for value-added and brands in our portfolio allows us to obtain higher margins. And there's still low penetration in this market with only a 65% footprint. Today, BRF is a strong leader in the industrialized swine brands and the mainlines of the market with salami and baloney. Our priority is to have a lot of added value in pork with the strength of our brands and distribution and constant innovation. To give you an idea of the opportunity the Brazilian market offers, the entire food universe is over BRL 800 billion, and the categories where BRF operates account for only 17% of that. This makes us extremely confident in expanding our portfolio to other segments that show synergy with our business, such as spreads and vegetables, which allow a value-added and brand increase. We have an immense opportunity at hand with a focus on our ability to provide what consumers want, wherever they want. We are taking strong strides in our business model and digital platforms where we will be present so as to better serve our clients and consumers. We will strengthen our collaborations with retail and our digital initiatives while advancing it with our marketplace, bringing custom-made solutions to improve our level of service. We want to understand our customers even more and exceed expectations, providing the best experience with our products, services and brands. We have just opened our first concept store, the Sadia market, with digital solutions and fully integrated with the at-home market, our online brand. We've already been recognized by our customers and brands as an important digital player. We're moving forward with full strength, and we're absolutely confident that our revolution in the Brazilian market is just starting. [Presentation]

Today, we are extremely relevant in 130 countries and we have control of 10% of the total production of protein in the world. This provides confidence to intensify our production and -- at the local level regardless of the import. Now our priority of investment will be directed to hold the other 90% of local production. With this expansion strategy, we are going to be holding 50% of the global market. And with this, we are going to make advances in our globalization in market with high added value and scale, bringing synergies of innovation portfolio and brands in addition to reducing the risk. This is our vision. This is our aspiration. We are now going to see what we're going to do and how we're going to do it to get there. We follow with international strategy, which was defined in 2018, that has 3 levers. The first one is focused on exports. And we are going to develop a structural program to strengthen them. So financial sustainability is very important for BRF. And we are not going to reach it if we do not provide -- ensure -- we do not ensure the exports. And also, we are going to expand our footprint in Saudi Arabia and Turkey. Turkey is very relevant to this region, and our target is to consolidate our leading role. The business model in Turkey focus on high added value with traceability and differentiation of the product. And then we have the third lever, the global expansion that means to be present locally in most important added-value centers. Synergy is also one of our main strengths. And with synergy, we understand that we can add value in different steps of the chain in the markets we operate. We put all our efforts in reducing and improving the efficiency of production and distribution. And with this, we can penetrate in the market for industrialized products and improve our share in the international markets. Our focus is in accessing the markets with high value of added -- value-added products with innovation, financial sustainability and the stability in results. When we look with the lenses of added value, developed countries are major opportunities. And in this strategy, we look at Asia, North America and Europe. The global market of food amounts to 242 million tons. We are restructuring the strategy that considers brands, product portfolio and scale. We have strong brands recognized at the international levels, such as Banvit and Sadia. And this is fundamental with markets that are looking for food security and looking for quality. We renovate -- we have renovated in those markets. From exporters, we're going to go to local producers, not with commodities but products with added value both to retail and foodservice. In the next 10 years, BRF is going to set apart from the competition by adding value with innovation, sustainability and the enhancement of the portfolio and also providing stability in the results. [Presentation]

At BRF, we have new businesses under development, and we are going to speed up the transformation in different categories. As of 2014, we have observed a growing demand at the global level with -- for new sources of protein that is driven by different factors, among which the concern with environmental causes, new diets, lifestyles that drive the growth of different types of diets, such as vegetarian across the world, more access by means of foodservice and more presence of this type of food at the supermarkets, sharing spaces with animal protein and dairy products, increase in investments of -- in this market that has attracted about $5 billion in the past 5 years, constant evolution in innovation and technology, improving taste, texture, scale, health ability and also by reducing the cost of production. We see a new generation of products that mimic proteins using textures of -- and improving textures and taste of animals, such as dairy products and beef and chicken meat. And we have increased the penetration frequency of this. And this will be done by increasing the penetration of frequency, increasing the share which is still small, less than 3% of the total of processed protein. Even though it is still a market necessarily in evolution, this new segment has a high-potential growth. And BRF will take the leading role and will have the capacity to lead in this food revolution that promises to be the major transformation of food in the sector. We are very relevant in the category with the launch of our Sadia Veg&Tal in the beginning of this year. We hold 1/4 of the segments of nuggets. And we have appetite for even more. With the mastery of new technologies with extrusion models, protein isolation and also the combination of current and other assets, we are going to lead this transformation in the country. But we are not only talking about protein that has grown a lot. Our pets have been fed better and more. And this has been one of the markets that has grown the most in the past years, growing more than 2 digits at an annual level. Brazil is already the second largest market in the world, second only to the United States, with a current market of BRL 20 billion. And for 2030, it's estimated that the market potential amounts to nearly BRL 40 billion. And this growth has been -- is driven by the verticalization of the cities and by the humanization of animals that brings about different needs for the feed of these -- of 4-pay friends. The premium, super premium brands are the ones that are going to be favored the most. Today, BRF is already present in those segments with the brand -- premium balance and super premium good, which has grown 8x in the past years. The synergy with our chain provides us with competitive advantages as to costs and quality. We are already the second largest producer of feed in the South Hemisphere. In our company, we have the main ingredients for the formulation of the feeds. And this will ensure us more efficiency and low production costs both in terms of -- because of the scale when we purchase grains and also by the access to specific input, such as hydrolyzed protein and oil -- special oils that are already produced inside our company and we provide to the pet feed market. All those synergies brings us advantages in a market which is difficult to replicate. In addition to that, we have access to the distribution channel of the traditional retail segment. And we are going to evolve in the specialized retail market and also the technical market. In order to lead this project and to take part in this, part of the company, we have a purchasing company led by Mr. Maganhoto, ex CEO of Royal Canin Brazil, who is very experienced in the sector, and he has just taken this position at BRF. BRF will be 1 of the 2 largest food companies for pets in Brazil. In 5 years, this new growth, pets, that are going to be followed in Brazil are broadly replicable in other regions, in other geographies where BRF operates. And this is going to provide us with new opportunities and new growth avenues for the future. [Presentation]

We can see that the plan is ambitious, new products, regions, categories and channels. What will be our -- will equate this? Providing return to investors. To answer those questions, I have here Mr. Lorival Luz. And with all the opportunities that you wish to capture, what will be the size of the company in 2030.

Marcio, first of all, I would like to say that we are going to grow with safety and discipline. As you all saw along this period, we have prepared ourselves in all those fronts. We are ready to grow and add value, leveraging our competitive advantages which sets us apart, expanding our market value and size. We are going to continue offering food, which is ever more easy to use, more convenient and with the quality when the client, the consumers want, whatever they want and the way they want. We are going to transform and lead the ready meals market, whose demand is growing, considering the trend of consumption habits of our consumers. This is a market with a potential to reach BRL 16 billion, more than 4x its current size. We are going to revolutionize the market of added value pork. Sidney presented and said that this is a market with low penetration with a great potential to increase opportunities fivefold. We are going to expand our international presence. We are going to be relevant, and we'll have a local presence in the major consumer centers of added value. We are into access markets that represents 1/3 of the global consumption. We will capture more than BRL 20 billion in revenues in those markets by 2030. We are going to be among the leaders in the pet market, which is a segment that tends to grow 12% a year, and we are going to reach this market that's going to reach BRL 40 billion. We have unique competitive advantages. And our business has an enormous potential to be replicated in other regions where we operate and where we will operate in the future. We are going to lead the segment of meat substitutes that promises to be the major transformation sector in this food area. And this is a market which is still in the beginning, but may reach BRL 13 billion, and we are going to watch closely all those trends and lead this transformation. We are going to invest, at the organic level, more than BRL 55 billion in the next decade with resources, funds generated from our cash generation. And we are also going to use different credit facilities and sustain the profile of indebtedness with average maturity term of 9 years to sustain those investments. Those inorganic investments will be evaluated according to our financial discipline. We are going to grow with safety and with consistency. Throughout this journey, we expect careful levels of leverage, 3x EBITDA and net debt. We are going to be very fast when to take opportunities, but we are going to be very prudent, very careful in order to protect from any adversity. We plan the execution of this plan in 3 phases. First, from 2021 to 2023, we're going to invest in the diversification in different regions. We're going to lead the transformation in Brazil in ready meals and also consumption of pork. And we are going to make headway in new businesses in the pet market. At the end of this first phase, we're going to nearly double the net revenues that will reach about BRL 65 billion, and we're going to double our EBITDA. At this phase, we also plan to start paying dividends. In the second phase, from 2024 to 2026, we are going to be favored by the added value that has been included in our portfolio and the strong generation, and this will support the continuity of the investment and also the consolidation of the dividend payout. In the international market, 45% of our revenues will be generated from added-value products with the strength and presence of our brands. Up to 2025, we are going to grow our revenues in Brazil in more than 60%. And in this phase, our net revenues and EBITDA will have grown by 2.5x when compared to the current levels. In the third phase, from 2025 to 2030, we are going to start a maturation phase of most of the previous initiatives, and we are going to accelerate the capture of economic value and continuity of investment. At the end of this third phase, we plan to reach net revenues of more than BRL 100 billion with the portfolio with value-added products of more than 70%. Our EBITDA will grow by 3.5% as compared to the previous -- the current levels with margins above 15%. The net profit margin will reach about 6% and the ROIC, about 16%. And with this planning, we are going to consolidate our leadership position as a global food company with high added value, strong brands, high-quality product and even more admired. This is our ambition, this is our vision, and we are going to reach those objectives with sustainability as a central part of our essence with transformations in all lengths of our chains, strengthening our culture and combining growth with value generation. We have a solid plan, a detailed plan. And just like we delivered our objectives in 2018 and 2019, we are going to repeat this in the new phases with the best brands with our differentiators and working with ethics and transparency, we are sure that we are going to reach this future device for the company, and we'll make BRF better and bigger. And at this opportunity, I would like to invite the Chairman of the Board of Directors, Mr. Pedro Parente, to talk to us and convey his message. Thank you, Pedro. Let's keep distance and to keep the safety.

Well, I can still say good morning, well, actually 10 minutes past good morning. So good afternoon to everyone. But I'd like to say how happy I am to be here. And I'm happy for many reasons, the most important of all because of everything we've heard from our team of executives, what we heard from Lorival. And I think my role here is a lot more to convey to everyone watching us, our investors, clients, potentially collaborators as well. Two things that I see as critical: First of all, as Lorival said, I am the Chairman of the BRF Board of Directors, but today, I'm not here only on my own behalf. I'm here speaking on the behalf of the BRF Board of Directors, the entire Board. And this process that has brought us here today, the process of formulating our strategies and strategic processes was spectacular. We relied on our entire strategic planning team, our Executive Board and also our administrative board at every step of the way. We've revised, we've discussed, we've participated. We've approved each step that were shown to you here today. This is an extremely sound plan, a bold plan, but it's also a plan with a very important characteristic. We know where we want to go, and we know how to get there. And we, at the Board of Directors, saw that in detail. Now one last takeaway which is very simple. What brought us here today and what allows us to do what we're doing, which is to announce such an ambitious plan as a journey where we promise and we deliver. We have been at the helm of the company for 2 years. We found a company that was fraught with problems, but what everything we set out to do, we did. And the authority I'm asserting is the authority of someone who works hard to deliver what they promise. And the team, led by Lorival, came up here today and have the boldness and the courage to introduce such an ambitious plan. Thank you to everyone. That's the message I have for you today.

Thank you, Mr. Parente, Chairman of the BRF Board of Directors. As you saw, this was a very clarifying presentation. And it's good to see how BRF or how prepared BRF is to face the challenges in the future. Now we'll have a Q&A session so that everyone watching us have an opportunity to hear everything that they wanted here about this process BRF is preparing. [Operator Instructions] If any of your question stays unanswered, our Investor Relations team will be available for any additional questions, and we'll reach out to everyone in the question line so that every question is answered, which is why it's important for you asking your question to ask it as concisely and straightforward -- in a straightforward manner as possible so that everyone has the chance to ask their questions. So now I'd like to invite to the stage our Vice Presidents, Carlos Moura, Sidney Manzaro, Vinicius Barbosa. You can please come on up; Leonardo Dallorto, who will join Lorival here in our studio; and participating remotely, we will also have Neil Peixoto, Patrício Rohner, Bruno Ferla and Alessandro Bonorino. Good afternoon, sirs, and thank you for being with us today. Our first question comes from Ms. Isabella Simonato from Bank of America. Can you hear me, Isabella?

I can hear you.

You can ask your question.

I have 2 quick questions. The first one is about the first and second revenue growth stages and EBITDA growth that you're talking about. When you talk about in 2025, '26, will grow by 70%, that means that the revenue of the international market will grow more than 3x over the next 5 years. What I got from that is that all the CapEx that you mentioned is organic. And I'd like to understand how will things occur in the international market. I see that you're looking at different regions besides Saudi Arabia. So how will that be organically in a relatively short time to build such a large and profitable platform? I would like to hear some in-depth ideas about that. Also, the 55% CapEx, is it 55% organic or not? And when we look at that, that would imply about 20% gains, which is a lot more than what the company has been able to achieve historically. So I'd like to understand a little bit better how will profitability move to such a higher standard and -- considering everything that you want to accomplish especially internationally?

Well, first of all, Isabella, thank you for your question. This is a very comprehensive question. I would like to make a few points and then share the floor with Patrício, who will talk a little bit more about the international scenario, as will Carlos Moura. In general, what I had to share with you is something that really sets us apart. Our company will focus its ambition and initiatives on being more and more a company of high value-added products, which will bring stability to our results. And that is not only in Brazil but also internationally, where our local presence and local production will focus on industrialized products with the value-added brands. So increasingly more, we will benefit from the strength of these brands. That's the trend. This explains some of the reasons why we expect higher profits, higher returns moving forward. It's what I talked about. We're moving from a 50% high value-added products, including the domestic and international market, to 70%. So the profile of the company is changing. The profile of the company will adjust increasingly more toward high value-added food products. So after this -- giving you this introduction, I would like to give the floor over to Patrício, who is here with us today, and then I think Carlos could add a little bit about our CapEx.

Perfect. Isabella, thank you for your question. It's a shame that I can't be here in presence as I did in previous years. But a little bit picking up on what Lorival said, it's exactly that. We will have a combination of organic and inorganic growth. We have large capacity to expand our production in the Middle East and Turkey, including the last -- the latest acquisitions we made in Saudi Arabia. And this will increase our capacity to offer even more value-added products, which provide us much higher margins and profits, sustained by our brands and distribution network. When we talk about other markets where our huge avenues for growth are, what we're trying to achieve are mature markets with a lot of scale. So when we talk about Europe or the United States or Asia, our first movement will be inorganic. But a lot similarly to what we have been doing here, we will go into markets where we have the ability to develop our distribution, our talents and from then on, achieve organic growth, gaining even more scale. We have everything that provide our global synergy. We're the world's largest poultry exporter. And that allows us shorter times, allows us to get to many more countries and have these platforms where we can achieve not only the local market but also the regional markets in each one of these areas. I don't know if Carlos has a little bit more to add to that but -- so this will be a combination of organic and inorganic growth.

That's exactly that. Thank you, Patrício. Isabella, pleasure to talk to you. I think another point about our CapEx that we should stress is that the cost by ton of our investment will be lower, considering that the company already has the area to do that, already has assets with which we can leverage our operational advances. And every CapEx approval goes through a very detailed process where we assess every aspects, including ESG and environmental processes, which will become increasingly important in our decision-making. So the combination that Lorival mentioned and Patrício developed on, we will have a lot of financial discipline which already permeates our organization.

Thank you, Carlos. Our next question comes from Leandro Fontanesi from Bradesco. Can you hear me, Leandro?

I can hear you perfectly. I'd like to ask you about growth. You've just mentioned your international expansion, but I wanted to -- I wanted you to clarify how will you add to this growth moving into different segments. Lorival talked about pet foods, but when I look at your statement, this increase in your EBITDA will come from these segments in what percentages? If you could please paint a slightly more colorful picture in that sense, I would really appreciate it.

Thank you for your question. Well, we're going into the pet food market. This is a market we expect to see high-growth rates that may come to BRL 40 billion. Our goal is to 1 -- to be 1 of the 2 most important players in this market. And this is a market where we see higher margins than the ones we have today, so margins over 15%. What we're saying is, yes, this will be a relevant business. And it's not just that. It's not just this initiative. As I said, we have initiatives where we see growth according to changing consumer habits in terms of having a greater -- a higher demand for ready meals. And we will also invest in that by releasing new products and going into new lines. And with our existing brands and our existing distribution network, we will lead this change in the market and consumer habits. And as I said, this is a market that could grow to over BRL 20 billion. So this is a major opportunity. And just to give you another example of a great opportunity is what Sidney mentioned about pork sales. There's a structural change underway and a change in the profile -- the consumer profile. Now who can seize that? I think this is something we can do with the credibility of our brands, say Perdigão. We can introduce new alternatives, new products as well as new opportunities, which will allow the per capita consumption of that type of protein will grow approaching the levels of other proteins. So there are a number of avenues for growth, which will allow the share of new -- let's call them, new products as well as an increase in what we are calling high value-added products with the strength of our brands, which will grow from the current 50% to 70% in the future. We will continue to export our products overseas, but more importantly, we'll expand with innovation, with investments and the presence of our brands and products, which are increasingly practical, healthy and with high quality. We could maybe create some simulations for you with these avenues for growth in mind. Thank you.

Thank you, Lorival, and thank you for the question. Our next question, Mr. Marcel Moraes from Santander.

I commend you on the shortness of your answers. And I'd like to talk a little bit about the 3 stages you mentioned really well for the next 10 years. What do you expect in terms of cash conversion over this period? I know that this will include a lot of working capital. If you could please paint a picture for us of how you see your CapEx changing over this period with some concrete examples.

Thank you, Marcel. Carlos, who's right here beside me, could maybe talk a little bit about not only how our cash generation management will go about, but also our capital structure, talking about leveraging and obviously the average maturity for our debt, which is currently very, very long with over 9.5 years average payment maturity.

Thank you, Lorival. I think it's very important to contextualize how our cash generation has trended over the past few years. If you consider our last 9 months, our cash generation developed consistently, which brought us to a very robust cash position. And over the course of this year, even with the COVID-19 pandemic, we were able to take a number of steps to strengthen our capital structure, even issuing coupons. We issued $800 maturing in 2050, but pre-liquidity, our operations, both Brazil and abroad, were able to help us to structure our balance. So we're now with a solid balance with an average debt maturity of 9.5 years, which now allows us to invest over the course of this first cycle. So this will be a cycle where we will sow our growth, growing our margins, growing our return rates. And so we will have a slightly narrower cash generation. It should improve at the beginning of the year. And in the second stage, that cash conversion will be at about 25%. Depending on the level of dividend payments we'll have, we might come to a cash conversion of over 30%, 30% to 35%. Obviously, that will depend on how much we'll be able to explore our opportunities and how our investments will mature. But according to the plan we've devised, those are the conversion rates we considered.

Thank you, Marcel, for your question. Now a question from Marcel Duarte (sic) [ Thiago Duarte ] from BTG.

I have 2 questions for you. The first of them, in your revenue growth plan, even thinking in the BRL 100 billion in 2030, if you could detail for us the growth in -- the average growth you see and the growth in common. The second question is if you could go a little bit more in-depth in how these investments will be distributed over the next 10 years, especially during these first 3 stages.

Thank you, Thiago. I'm going to address your first question and then turn the floor over to Carlos so he can talk a little bit more about our BRL 5 billion CapEx. Your question about what the average price will look like. Our plan and all the initiatives we have envisioned go beyond the average price and volume issues. And maybe this could be a short -- shorter-term discussion. Initially, what we want is to have this long-term vision, including new markets, new categories, new businesses, new opportunities. That, for me, is slightly beyond the question of whether the average price next semester will go up or not. What we're saying here is we will retain our management and our obsession for productivity, gains in scale, and operational efficiency. As you saw and as Vinicius said here, we already have a very expensive work that's already been developed, and also as Leonardo presented. So it's just a summary to say that these gains will come from our efficiency and our new lines of business. And the average price is only a consequence of supply, demand and the trends we might see in the costs of the several different markets where both we operate and we'll operate. On that note, I turn the floor over to Carlos, who will talk a little bit about our CapEx.

Thank you, Lorival. Quickly, the first cycle, about BRL 18 billion; the second cycle, an additional BRL 18 billion; and from '27 and 2030, something amounting to BRL 19 million (sic) [ BRL 19 billion ] of total investment. And this will include the performance of the new investments and the maturation of all the investments. And these all can be -- suffer some adjustments.

Thank you very much for the question. The next question is by Lucas Ferreira with JPMorgan.

It's a very aggressive and daring plan. Lorival, my first question would be, what would you -- make you lose sleep in your growth plan? And I would like to talk about the competition. The second point would be the income of the Brazilian household. Do you believe Brazilians will have enough income to increase their consumption? And the third point is something that you have been mentioning some years, the internal team of leaders at BRF. And this is something that you mentioned in the latest BRF Day. So you said the leading team is already adjusted to deliver this plan. So I would like you to talk about the 3 points.

I'm going to address those 3 points that you mentioned. Competition or competitors in general, how I see competitors? Competition is healthy. It helps us improve our service quality level, our product and how we provide services in general. So I believe we understand competition. We respect our competitors. And what we want from them is to play in the same field to level the field. We want to work with the same rules using the same weapons and under the same conditions. If all competitors work with FX, transparency in a sustainable manner, I really believe that this is going to be better for the consumer and better for all the markets. And this is how I see it. And we are going to be working ever harder to provide the best product and service to our clients and consumers. In relation to your second point you mentioned, which is related to the household income, of course, this is a very important topic to everyone and Brazil as a whole. But we should not forget that we are operating in the food sector. And as Marcio mentioned right in the beginning of this event, the population is growing. And this growth of population for the next years will demand ever more food. So what do I mean when I say that? Even with the effect of maybe lower income, the demand for food is and will always be growing. What may happen is that there may be some changes of speed one year compared to the other. And this is why we are devising our 10-year plan. We're not talking about 6 months or a single month. And we are not going to be looking what happened in the past, and we are not going to be saying, "Oh, this week, we had better exports in comparison to the same period of the previous year." We make decisions based on studies. We study market trends, consumer habits and what's ahead of us. And this is what's going to define the future and the success of BRF as a company from now on. And you mentioned the third point. I can't remember. Oh, internal leadership, yes, people. This is an extremely important point and you said it well. If we consider 2018 and backwards, the turnover of our leaders was really high, including CFO, COOs or other executives or other C-level personnel. Today, I'm confident that, first, we have the best executive team, the best vice president team in the market. And at the global level, I understand that no other company has the quality, the experience, the engagement and will to do of the team that is joining me on this journey. And this shows the stability. And we have been together already for 2 years, and this is how we are going to stay for the future, for the years ahead of us. And we are working on the formation and the succession of our managers. As Bonorino said, there are programs that include many hours of training that will ensure together with the business management initiatives. This will ensure the culture and the knowledge of the company. And you have seen that -- the level of engagement, the level of satisfaction of our employees. And these are rates that have grown a lot in the past, reaching nearly 98%. And we have achieved this by doing the right thing, looking after people at all times and being honest, working with our heart as to the care of things and people. And this is what's going to bring the engagement, the stability to deliver this plan and our future vision.

Thank you, Lorival. Thank you, Lucas, for your question. Now we are going to move on to Luciana Carvalho's question with Banco de Brasil. Can you hear me, Luciana?

Yes, I do. Can you hear me?

Yes, we can hear you.

Okay. Congratulations on the event. I would like to touch upon this [ mercato ] concept store that you are developing, and we can see that it's undergoing some growth and you want to reach the target of 70%. Could you provide some more details how you're going to go about it? So where are you going to store -- the stores and how long?

Thank you, Luciana. I'm going to turn the call -- or turn the floor to Sidney, who can provide more details about this topic.

Thank you very much for the question. Our strategy to place the consumer in the center point, which is the main point of this process. By placing the consumer at the center, we are expanding our relationships by means of B2C, both including Sadia market and [ mercato ] at home. But this is a journey of experiences involving the consumer. When we get to know, we go deeper into our knowledge and we master the consumption habits in different areas and different occasions. We opened our first store, [ mercato ] Sadia, and we have an expansion plan of adding 10 other stores, but this is an initiative to be ever closer to our consumer. So this is part of our strategy of go to market in which by means learning about the consumer, we can perfect our process in launching products, in positioning our categories and even improving the service level. And by means of B2B and 2C in the retail market, we can migrate and expand this knowledge so that the relationships and the interactions in the retail market can be ever more promising and growing. So this is a growth strategy to learn more about the consumer and transfer all the knowledge to our clients and partners.

Sidney, thank you very much. Thank you all. Unfortunately, this was the last question asked online. Thank you very much, Luciana with Banco de Brasil, who asked the question, but the Investor Relations team is going to be available for any clarifications you might have. And all the questions that were in the queue will be answered, and all the questions will be clarified. I would like all this team, Neil, Patrício, Bruno, Alessandro for being here with us at this event. And I would like to thank you, especially. We are nearly at the end of our event and Ms. Lucy Sousa, who is the President of Apimec, is going to award the seal of assiduity.

Hello, Lorival Luz, Global President of BRF, our team, associate members of Apimec and other investment professionals, it's with a great honor that we deliver the seal of assiduity of 38 years. This is the longest time that a member has been with us. So these 38 years of partnership is an important moment for us. And I would like to thank you for the partnership.

I would like to thank you all on behalf of BRF for having attended this event, and have an excellent day. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]