Grupo Casas Bahia S.A. ($BHIA3)

Good morning for anyone who's present in person and everyone who's online following our Investor Day for Grupo Casas Bahia Group. Today is a very important day to all of us. I know that everyone who's been following our journey over the last 2 years and the whole transformation plan in truth has a turning point. A moment and we start course correcting and begin to build the future of the company. And we have arrived at this point. That's why we wanted to have a retrospective. It's always good to have this reflection of what has been done over the last 2 years and especially what is the company today? And what are the view for this company today? And what is what we are going to do in the future to improve results and enter the value generation journey. Two years ago, we had 2 questions. One that we wanted the answer. At our core, is the company capable to generate value and a good, and the other question is, will this company survive? And what we've done over the last 2 years, it was a big risk for this company transforming on the completely operational efficiency transforming the capital structure churning and bringing more investment that is more stable. We changed governance. And now we are on a path, a fun part of construction of leveraging things that bring more profitability and more value, things that make us very confident about the future. No one here is a speaker, so we don't feel so comfortable about doing this kind of presentation. I prefer to be every day Monday talking about what happened on the weekend and fighting and struggling. And we think a lot of people are more comfortable to be here and not in a day today hustle. No, because this is not our daily life, but we are going to open everything very transparently what's being done and how things are short term, things are in movement happening, and you will see the results of what's happening every quarter. Everything is gradual. There is no silver bullet to fix the company. But we are going through the whole process, and then we are going to talk about what we see long term. What are the leverage and all the drivers, and now about the guidance, it's not about directive. We don't want to establish formal targets. But you can have an idea of how much each driver, each leverage will contribute for our indicators of the revenue, which channel for our operational margins and then getting to AIR and what's the future for the next few years and the macro scenario which we influence everything, but it's our obligation to have a robust and consistent objective that will offer benefits and will be an upside for our plan. So the schedule for today will go over 4 chapters. The first one, when we talk about transformation plan, everyone is skeptical. And when we see other people talking about it, whenever a new management takes over a company, we always have a transformation plan. And -- but here, the transformation is real. It's been seen by everyone with a very hard decision. When we take over a company and decide to sell less to improve profitability and focusing what we noted, how to do, this is not a trivial decision. And we have a lot of results to show for this. And then we are going to talk about the new leverages that are already in movement. And each executive will present their area and you get to know all the leaders for each area of the company. But we lead this company. I say that also and myself represent a group that is very big with more than 30,000 employees creating this transformation. It's not just us. It's every single person in the company. We do -- I only do 3 things here, we say, select people define goal and demand goals -- demand results. So we're talking about the path for profit and the vision of the future. And then we are going to have an open discussion and Q&A for anyone who might have questions to ask is an opportunity to explore things in more detail. So let me start with the transformation, we are going to try to be very streamlined and pragmatic so that you can have a result for your investment in time. So just going back to the 2023, we had high leveraging. You remember that we were doing everything for everyone. I'd like to joke that it's like an Italian restaurant that is well known with our huge market share leader, top of mind, but with the delivery, the app deliveries growing and they decide to sell something different. But our main thing is the white line, the appliances and by now pay later and the credit. And we had low ticket items that has a lot of turnover with free shipping, but we couldn't put value in that and generate value. and this can demand a lot of capital and investment and compromises the capital structure. Then we had an event with Brazilian retail in the U.S. that was very damaging to the sector. generated a credit restriction for everyone. And then we also had a culture, and we are going to talk about cultural transformation because the retail market usually to solve problems, we look at about growing GMV, gross profit, but we had to change that mindset. And then we had the competition issues with all the international company and the general marketplaces, increasing the pressure and competition. I'm not going to go into the detail in 2023. But within this context, we created a transformation plan that was very robust presented in 2023 with 2 fronts. One, paying attention to operations, what we needed to do and improve our cash flow within operations and create a healthy operation because we consumed cash flow and we also had to pay for the financial expenses. So we needed to adjust all the operational lines in the company. So we can have a profitable business. And the second, we needed to have less expenses in the financial aspect. I don't believe in retail as a generator of value. If the macro is not well, we lose money. So we needed to have a company that was like that was lean that could focus in the operations and have financial expenses that were compatible with the operational catalog that we had. When we look at this plan, we had 3 stages. And the first stage that I like to say when the emergency is massive, we have an advantage. The cultural advantage, it's more feasible, because everyone knows that things need to change. So the first message that we had a cash is king was very powerful for everyone to understand that we need to remove anything from the way there was a [indiscernible] or there was -- we wanted to bring audience in the website, app download things and we're not generating cash flow. And we were very focused in the -- during the stage about the cash king idea. And for the whole year, we did strictly cash flow generation, try to monetize assets and get a breadth so we could move ahead. So we began the second stage of this transformation where we allow to bet a few selective areas. We wanted to increase the client credit and on other -- a few areas and how we could do that with the leverage for investment, but a proportional investment to the capacity of the company at the time. and with a short-term payback. When we reduce the CapEx, many people questioned us. We left for BRL 1 billion a year CapEx to less than BRL 400 million, and we kept most of the specs invested in technology, and we will hear about that later. Today, the company's case study for all the AI -- global AI with productivity, conversion operational efficacy and with a cost reduction with the use of the AI. We migrated to the technology to cloud from physical to cloud data center and we changed the CapEx, and we had a quick payback, and we could reduce costs. And now we are going to a new stage, 2026 with a challenging macro, but we are standing on solid ground, and we have -- especially considering the global political situation. We have no commitment to growth. We are committed to the profit, liquid profit, and we are going to work -- so the company continued to improve so that we can have indeed internal cash flow that is robust, but with a more favorable scenario where we can capture of market share. When we talk about transformation, the first thing we changed the strategy. And so we can remember what is this company because that's where we brought our strategy from -- we're talking about a company with a very wide large company with very few companies that has the privilege of 95% of the population at as a client. We have 116 million clients in our company, 29 million active clients with purchases over the last 12 months because all appliances we change every 4 years. and with the macro scenario can expand that cycle. When the scenario improves, we can have the increase of consumption and with the recurrence of purchase. It's a company with a [ BRL 45 billion ] GMV, more than 1,000 brick-and-mortar stores. We have a long history. It's a top of mind company, which we are the most remembered company for over 20 years. We have a very strong presence with 26% of market share in physical stores. and 40% on online. We have a huge potential growth and the largest logistic infrastructure in Brazil with the [indiscernible] distribution center, more than 1.1 million square meters and with established CapEx. With this outlook of the company, we changed our structure which was generalist player trying to sell everything to everyone into a specialized appliances and furniture company. So when you talk about -- when we talk about we are going 3P, we are going 3P 4 core products. So we don't have all our own SKUs because it doesn't make sense with no margin or return. So some of them we prefer to sell directly from the supplier. And we have a take rig. But we are the only player specialized -- national specialized in appliances and furniture focus only in those areas. Back in '23, we had 86% of our revenue was in the core categories and 4% and the rest was others and the order volume that caused a lot of struggle for the logistics and costs with a negative contribution. And sometimes we see offer free shipping or something like that, and we had a short-term revenue consumption. And nowadays, we have 96% of core categories. The rest is the product that is not core, but we -- our structure is being used for that those sales. For example, gym products, everything that is large, the company has a very strong, powerful study logistics structure for large products. So that seller that has a project that is difficult to be transported. We -- they use our supply, and they can even without investment without our focus, without paying attention, they can have good sales. So we have some areas that are fitting in that 4% of the revenue. We grew the 3P share, and this helps with the return on invested amount, and we have a 3 core -- and the last column, we can see the difference. There is no other play with this proportion of revenue for core or 1P proportion because then we start to look at our strategy. If you look at the other players, they have at least at most 50% of core areas and 30% of 1P. What is the company's strategy? Our ambition is to be and continue to be enlarged of being the largest 1P in Brazil, purchase and sellers of appliances, technology and furniture and the biggest seller in all platforms in our own channels and other channels, be it general platforms or AI platforms and now UCP for Google that we will launch more sales channels. We will have all the differentiators to be the largest sales. We want to be the largest 1P seller, we have the largest 3P for core categories because we have the audience. We have a solution that is very robust for credit alternatives for consumers in these areas. -- when they need by what now plate in Brazil. And then we have a journey that we add services, improve the purchase experience of the consumer. -- and other products that have margins for the company but improve the client experience. This is our vision for the company for the long term and where we want to get to. And looking at these advantages, we will start to carry out our strategy. What are they? Let's remember, first one, the largest omnichannel platform for appliances in Brazil. So Omnichild serves the customer for whatever they come from with different points of contact with the client customer, strong financial solutions offer with the buy now pay later, the credit for the consumer -- this was very important to show how robust our business model for credit is in the company. We have a national logistics infrastructure before focused in the company. And now we will see the alternatives. We are opening to third parties with more than 100 clients using our logistics infrastructure. And now we are also discussing deals. We began with a small regional deals. And now we are starting to talk about with big players in different areas, national deals that will optimize the allocated capital that we have. And last, the top of mind brand that bring us a capability of monetizing everything that we have for appliances, furniture and technology. I'm going to paint a little better picture of the market share. So these are new numbers. Remember, we have appliances, furniture and technology. So for furniture, we don't have official numbers. We only have the online numbers that represent about 20% of the furniture market that [indiscernible] offers. But news doesn't have official numbers for that. and we estimate that we have about 15% market share. For all the rest, we have official numbers. Nielsen purchased to [ OGFK ] and they published the numbers and 2025 for appliances and technology, TV, cell phones, it's billions of reals. And the online market, we have BRL 87 billion and brick-and-mortar stores with 44%. Of course, these are official numbers based with the database information that we get from big players. Theoretically, they are just to mitigate a possible deviation increasing the online market. So when I sell to other platforms, I notify the sales and the other platforms too. We do not notify how much we sell per platform. They look at the supplier and adjust to mitigate this difference. But we could have new deals that will influence and change a little bit those numbers. But if we look at U.S. and Europe penetration, we have a similar number. So when we compare one with the other, we understand the Brazilian market is similar to the other. So 56 online brick mortar. There might be a little bit of alteration, but in a whole big picture, that's what it is. And the physical store is 26% or brick-and-mortar store, and we and the online market, it's a market where the company before had difficulty accelerating because if we wanted to focus more capital to the online market to grow and get share and put at the same level of the brick-and-mortar stores. it's better if we use the market of the brick-and-mortar stores. So we evolved our operational performance, so we can improve online and speed up online markets without having to increase our inventory. Then we can improve the return in our investment. And once we reach our superior operational level, we can see the market share increasing and getting closer to the brick-and-mortar store numbers. and we have a better general entry in the general platform, so about BRL 35 billion of the online market for the general platforms, and we didn't have our share in that. And now we do, and you can have an idea of the potential that we have on short-term investment and return. When we look at the different areas, so we can have a more -- a better picture. One in 3 TVs sold in Brazil, and we have the percentages on the screen. And we are looking at numbers that are more relevant cell phone 17% and we are growing less with the cell phone when we began with the offering insurance with a bad macro with the increased staff of cell phones, but then we have a sales opportunity for insurance and services that improve the contribution in sales, even with a different gross margin, and this will be talked about later. The white line is 26%. And the light [indiscernible] lines 12%. And then in IT, we have a smaller market share. In IT, a smaller market compared with a broad BRL 20 billion, we have 19.8%. We have very big powerful strength in tablets and the corporate market which is a big market. And then we are not taking advantage of. But yes, it's in our plans to start to approach. But we are not going to look into that today, but it's a big potential market. but different liens, what's been happening in region for brick-and-mortar stores. I think it was clear for everyone that our strength online is growing, but our DNA is brick-and-mortar store, where we have a good penetration for credit? And why do I believe in this? When we look at the market share in a brick-and-mortar store, we have the 2 red and blue states, the 2 areas, Sao Paulo State in red and the Southeast, [indiscernible], states. In this area, our market share is 40%, 38% in Sao Paulo, 42% and in Minas, [indiscernible]. And white light is almost 50%. As you can see that we have a huge market share in those areas. So the company leads, and we are growing similarly to the inflation, we can't grow even more because this consumption for high-value items depends on the macro families have debt. So they restrict consumption. But of course, the macro is improving, the growth is better. But currently, we grow based in inflation. But look at the other areas. Why do we have good growth. If we look at Northeast, for example, in the light green, we have 26.7%, 35% in TV and 31% in white line. And this 3 years ago, it was 15%. So we've been growing for a long time. Of course, the last year, the financial situation has deteriorated. And we have been more conservative in the credit line. We do have market. We do have a demand but we will not speed up our growth until we see numbers that allow us to do this with the conviction that we will have a positive return. We are not here to increase risk. We are here to prepare the company for a healthy growth with profitability. This happens with North and center with a lot of market potential, but with a low market share and potential growth. Our focus it to grow with same-store sales. In short and medium term, we can open for more. In the South, a little bit different with similar numbers, but we have less market for credit where we generate value. And we have a higher competition with regional companies. We see the regional players in other regions with more difficulty to compete with us. So we see a higher potential growth and more adventures grow in North and center rather than the South. And the South will be left for later. And then we have one more factor that is helping us. The market is not growing. We had all the credit restriction all the way back then, but what will help us. We have been working on developing new suppliers to the company. And this company is acknowledged as the company that introduces new brands in the market. So our store teams is huge. So when we launch a new brand into the market to build reputation, if you go online is expensive. You need a salesperson to say this is trustworthy. We use this brand -- we have no issues. And if you have issues, you can come and talk to us and we can solve it with post sales. So Casas Bahia Group became the main channel for Chinese products that are arriving in Brazil. And we have been bringing new brands in all areas, and each area have new players. And look at the China how it has been for position to second position for us. And China is closing close to 25% of COGs and by the end is 21%. But if we look at the whole picture, it's much bigger. First, the credit lines. Secondly, these suppliers, usually they want to earn markets, so they offer a bigger margin and a longer payment plan. And we will talk about this later for our investments, but this also helped us with the restrictions that we had in the most challenged moment back in 2023. And then we're going to enter in this competition. Obviously, [ Gustavo's ] job. He is going to be leading our commercial team and marketing and e-commerce, it's going to be a lot easier because he's got a competition with the suppliers for the same kind of share and a company is actually getting a bigger share at this with all the capabilities to increase their share. So for the ones who really want to grow on side Brazil needs to offer for Casas Bahia group with better commercial conditions given in margin and working capital as well. And then we will go over that -- we were just talking about that we needed to change our strategy or change our mindset in here. So just to keep in mind of what's been worked so far when it comes to decision-making in the company, -- you remember that we used to say that we were just looking at about the whole margin of the modeling of the business because we don't have anything clear out yet, but we're talking about a very simple way to look at we're just talking about the margin 1 layer in this scenario. So what we've done so far is when it comes to decision-making for the entire company team, all the commercial and the channel team, just so we can actually get to the layer and including all the expenses -- the variable expenses of those sales, to get the unit value of the -- of each item specifically area. And then we have the inventory and the capital storage in here and margin for is going to have the finance show actually approach to the consumer. So I'm going to have something related to payment conditions when it comes to installments and of course, paying in cash. And of course, the fifth layer is going to be the ear cars including the occupational cost of the store so we can have a better contribution margin for our SG&A. So of course, our mindset has really changed to know what we're actually going to buy and what we're going to say, what we're going to actually sell? And then we're going to have a follow-up with all of this on a daily basis, of course, with all of our bets and a more efficient when it comes to invested capital, we have a very strong mindset, which is way easier to sell the return over investment concept we created very simple margins in different layers that make clear to everybody what's going to affect our entire income and I think it's actually pretty easier to visualize those factors. And making a perspective of what's been changed so far. We presented this slide on back in '23. And this is just a pill of the deliveries. I'm not going to go over all of them. But of course, those are deliveries when it comes to the transformation pain -- of course, they're pretty relevant when it comes to the growth of what's being generated in terms of value in the company has a credit line in physical stores for brick-and-mortar, we didn't have any growth driver inside all of this. So when you have a very soft production living instruction aside, you're going to have a better core creating a very stable retail media channel to monetize this entire ecosystem, which is pretty relevant that's been brought to the company as well. And we performed a lot of cost reduction, almost to G&A points, almost BRL 30 million saved in savings for our organizational structure. Of course, Andre is going to go a bit further over this. And we had a cutback in all company lines. to increase operational efficiency, having cities, footprints and of course, so many things going down the line to make things more optimized, a simple comparison from '23 to; 25. That's why I'm talking about the turning point. And I would like to make it a bit more tangible to all of you guys how different we've been running so far. Look at those numbers. So when we come to the cash flow at the initial stage, we're going to have a leverage from 1.8x to 0.4%. The [indiscernible] GMV is actually set forth to BRL 24 billion to BRL 26 billion, which is pretty relevant. And of course, we had a lot of inventory free to make things available and of course, increasing our profit and diluting our invested capital, we have 26% in terms of growth in this specific line. And then we move on from the credit line on a big margin from 3.5% to 6.6%. And we have a 2-point average gain for moving up for 4.5 percentage points. Of course, we have completely different numbers within another level of operation that will allow us to get in another agenda, focus the more value generation in the company's future. None of this was actually performed overnight. And of course, none of this will actually be performed overnight. The most important thing of it all is the consistency and the discipline so we can actually move on improving each trimester in a grade way. We're talking about 9 consecutive [indiscernible] improvements. And of course, we need to take a few steps back to improve in our levels of production, of course, having less profit of it. But of course, the conscience that we need to have when it comes to company management does not work for the market, not perform in a very good time master in a fast way and compromise the at the upcoming trimesters. I believe that's going to be the biggest mistake we can actually incur. We need to actually have a progressive work little by little, of course, having better consistency. You guys have seen this slide time and time again, but we really need to show to show how consistent and the capacity of execution of this team. that will actually give me the trust that we need to move on and the better results that we're going to actually leave for the next year is, of course, bring in improvements and placing it and a place that it belongs when it comes to value generation. In the retail market, of course, with different metrics of efficiency over capital invested and now [ Emerson ] is going to come up to the stage to talk about cash flow in our BNPL numbers everyone.

Thank you for your presence in here. I'm going to move on with the presentation Renato said a lot about all the advancements when it comes to the transformation plan in August '23. I would like to close this first section when it comes to net profit and the conversion cycle for all the payments when it comes to leasing and CapEx. Before then, when you come to to the program that we started. So we had EBITDA reference numbers with the P&L as a guideline for you, so. We clearly have a turning point back in '23 in which we already had this a positive number coming along. We advanced to '24 and '25, reaching somewhere around BRL 1.25 billion. We understand and we acknowledge the positive numbers coming along, but we know that it's not enough towards the -- all the expenses that we have when it comes to leverage and the [ Selic ] rates that we have market. So of course, we need to contemplate all the tax payments at the level, so you keep on moving on with the operational level in be very strong when it comes to all the expense that we have, of course, come in in a very -- on a transformation balance, of course, now we're going to explain how this journey when it comes to the capital investment since the first slide since we're not a show when it comes to transformation plan, which is and absolute, which is a paramount cycle for us to complain about when it comes to operational level, cash flow and strategy, net profit. But of course, we need to be have a lot of visibility and to make sure the capital structure that we had was pretty fragile to work around. There is no way to work with 1 thing without a prioritizing evolution, the operational level of the company, which was pretty important. Of course, we have a lot of examples in here and specific moments, crucial moments of our project that started in December, of course. This is a sequential evolution of the sequence of the operational results, along with the initial operations. So we started back then, and we needed this amount of backup resources, we had somewhere around [ 15,000 ] employees. And of course, we had a lot of stores closing and all this created a lot of cost in. So we managed to get a on the initial follow-up. And then we start working with the refining and all the debt concentrated in the short term. And of course, it would limit the entrance of new suppliers. Of course, we had a very good restructuration in 24 preparing the balance of the company for strategic movements that we had in '25. And then we had -- for specific movements and fundamental to the company. The first 1 was the credit line for the FedEx. And in here, we had unlocked once and for all, the funding restriction for credit line restrictions, which is pretty important for our company. So I believe it was a bit before that. But when it comes to January '25, we had all the funding restrictions unlocked and then we started to work on a good profitable credit line, I believe we're going to have further explanation on this. And then we had the first conversion back in August from BRL 1.6 billion in a mature in equities. Of course, when we had [indiscernible] as a main holder of the stock market of our comment, of course, we had advances. And when it comes to corporate advances -- and in the sequence, we had the first -- since our first strategy transformation plan, the first IPO with cooperative risk through a [indiscernible] risk project with a minimum of -- initial minimum offer to set for BRL 180 million that will actually consolidate the [ Brent ] and the market capital. To sum up a final value of BRL 555 million as shown in the legitimacy of our transformation plan and how long it would actually -- how good it would actually become, and I believe the most size of the paramount stage of the specific project and the transformation was the complete conversion of other dividends of our company diverse -- making a conversion of around BRL 3.3 billion back by the end of December 31. It happened by the end of the month of December, and we managed to actually make it available. So I would like to harness a moment to thank everyone, all the stakeholders in this specific journey, which were a lot of people to make it happen by the end of it. Just to reinforce these 2 specific strategic movements from August and December of what they would really represent, we had a dividend reduction in here, working the entire profile, an entire transformation of our expenses and your debt would happen when we make the sum of these 2 specific moments, we had the savings -- tax savings for the next 5 years. So -- and here, we have a capital savings through the P&L in the next 5 years. And cash flow savings for BRL 7.7 billion for the next 5 years. So when here, we were able to understand the -- now we're going to have BRL 7.7 billion less of this specific expenses, which is pretty relevant in the capital structure of the company. On and underline, of course, I'm going to bring a few insights. This is the second one. The second movement before the December movement on your left hand side, you're going to have the expiry dates of each specific segment that we have, which is pretty virtual. I believe in '266, of course, you need to keep in mind if we're going to have Out of the BRL 157 million, we have BRL 146 million already paid. So from now on, no expiry are actually going to be outside of the company's scope. So we're going to have all these debts are going to be working on a very strong way back in the year of '25. We're going to essentially be we're not going to have any obstacles contrary to what we had previously when we were working for the next years. And then finally, we have an overview of how the transformation when it comes to leverage and the capital of the company. Of course, we're going to have a reduction of 77% of our expenses of our debts I'm talking about 77% of that essentially moving from BRL 5 billion to BRL 1.1 billion and the leverage that is actually moving from 2.2x to 0.4x. So yes, we're actually putting out for you over different point of views. How the transformation came along and how -- what were the prerequisite. Of course, we're talking about profit. Of course, we didn't actually make it there. But yes, we are actually setting the cornerstones and main pillars to set the journey ahead for from now on. So it shows clearly the leverage that we had dropping in a substantial way after the specific movement. And then we have the first outcome once you have the transformation going on, the risk and reward section starts to change. And of course, for all the suppliers, before the results actually came along, we started to work with the debt profile and the remaining factors of the company. So yes we had this stretching out of the liability management, in fact. So we don't -- we really are not really pushing it. Of course, we need to be more resilient, more robust improving in all financial aspects from now on. So this is the first movement. We had a replacement of [ BRL 1.4 ] billion which was on a short-term administration. And we stretched it for a longer administration given it more -- being more predictable, reducing all the financing risks that we had. Of course, we need to renovate all of them. So we start to work with them with the specific that profile, of course, la extending them to and remaining debt the total -- the complete remaining debt of the company is actually going to be set for the BRL 2.2 billion for in the short term, moving on through BRL 4.3 billion. So not only in the specific aspect of of leverage. But would we need to talk about the remaining debt to leverage looking at a more comfortable position? We had, of course, many scenes of the next chapter of this specific project and the leverage that we're going to have. We're going to have a short pause because we're going to finish. Meanwhile, when it comes to numbers and statistics. Now I'm going to call that to the stage to explain how we were able to do this -- to perform this transformation up til now. You can come up to the stage. There's no strategy. There's no mindset change without going over for all the people and [ Andrela ] is the one responsible for communication, sustainability and management of the company. We had a cultural change in a very significant way. and a change when it comes to the entire change, not only the cultural change focused on growth, but discipline, consistency and KPI focused with audience folding up of our targets and, of course, specific management routines in a well-structured way that brought along all the results that you guys are seeing. So [ Andrela ] .

Thank you, everyone. Good morning. Thank you once again for being in here with us. So now we'll go over a bit of how this transformation was performed in structure in all the offices of transformation with all the initiatives and a management model and a very different specifically, so we can actually sustain this transformation and allow us to ingress on a growth stage. So else, you brought all the financial aspects. So we had -- we had not struggling with the financial issue. But organizational an organization level as well. So we had -- but the end of the year '23, we had the need to revert all the results when it comes to [indiscernible] results. Beyond all that, we had a very critical scenario of image and reputation, the way that the market perceives us and bring along a very catastrophic scenario. Renato actually mentioned it before. So when we look at our internal numbers, it didn't actually go differently. We had 3 specific indicators, and I'm going to show with you right now when it comes to personnel expenses, we had critical assets turnover on -- actually skyrocketing. So when we make a comparison for personnel expenses, back in the year '22 to '23, we had a growth of 25% of personnel exposures overhaul. And for critical assets turnover. When we're talking about the high board members from '22 to '23, we had a growth of 884%. So when we talk about replace work indicators and rates for a company, we had a decrease of 10 percentage points, and we were left out for 2 years without having the proper acknowledgment according to our results. So yes, we really needed to have a behavior change. And of course, the entire model process of change had through entire office to actually have a main role in there. So we had, of course, people management office working together to bring those results along. So on the first session, when we talk about the culture, we needed to revisit culture that we had. Of course, we had many companies up until year '23. So each specific company, specific segment had their own set of values or culture. And working as a silo. So it would leave the company in a pretty stock position. And every daily team would work with their own culture. And of course, you would not converse with 1 another. We had duplicate structures in each specific company. We had specific mindsets in a very distinct way. So the first work when it comes to culture change was for us to perform a workshop, so we could perform a culture evolution. All the collaborators, all employees -- you started with weather [indiscernible] when it comes to Audi offices -- so we could actually understand what kind of culture we really would like to have an evolving and how we would focus on those lines. So this is our culture, map. Of course, I'm not going to go into any details on all of them. But when we look at those specific 6 pillars, when it comes to delivery results have been passed for our people, simplicity in everything I do, total dedication to client and ethics and integrity. So just to sum up what we're trying to bring in here, we have in a specific culture of being able to deliver consistent results with all the people in the right way. That was the simple way to deal with that seller performed all the work when it comes to guidelines and orientation. So everybody could be on the same page. A few specific rituals in cultural symbols, which were pretty strong for all of us, when it comes to the brand change. So we were not any more retail market player. We had another strategy coming along. We needed to get back to be -- to start getting back to cost by a group. And of course, we had a replaces like point of view to all the other customers. Of course, they didn't understand the branch as a [indiscernible]. It was not something that was lived in a store by our customers. So we get back to actually the brand portfolio and another change. So when we think about the entire cultural experience of office and retail market, we need to be really close to being. So when we leave on physical store in El Dorado, so now we had this underground department and everybody up above. So when we make this connection to be really able to test what's working out what is the reality about the whole feedback. Having the feedback all the time, of course, there was another important culture transformation. So when we talk about our targets, and year '24 when we made the implementation of targets. Once again, we had 3 years without target unfolding. So we had an entire company and are not knowing about their order goals when it comes to business model. So we have -- we spent 3 years without doing that, and we actually got back to a very specific methodology when it comes to targeted folding and cooperative targets, of course, is something pretty paramount. So how we would be able to direct everybody into the same line. So we have an example of the few lines that have been presented. When it comes to margin for layer, all the employees in the commercial department when it comes to logistics and commercial planning are also assessed by on margin 4 layer. When it comes to margin everyone in store operation is actually assessed. So when we look by the year '24 when we prospection -- by the year 25, I'm sorry, we had accountability, we have NPS, we have Cash flow management and monitoring, we have ESG goals, of course. And for this coming year of '26, we have the CDC production project because we're going to have a project coming later at 27, but how we're going to be putting everyone on the same page every year with specific and clear goals for the project. When it comes to ESG, so you guys can have an idea. We had an EBITDA result, meaning given every Tuesday, we would have so many people taken part in a 4-hour meeting, no one would actually really participate on no 1 will never work. So yes, we reviewed all these mindsets so we can have an analysis and decision-making with all the right people. And how making every meeting would come along when you -- every meeting would actually look into one another when it comes to the specific planning of the week. When it comes to all the results and the implementation of it also all these choreographic dense and the meeting change was another cultural transformation as well. And then we had a few visuals of course, when it comes to the annual convention of sales, it was a bit of a doubt of what we were really going to do when it comes to all the leaders, we had more than 1,000 store managers to be -- to have everyone on the same page, to talk about our culture. And of course, having all the information on land is pretty important. We have all the managers brought together in this specific event and an annual leader meeting -- and [indiscernible], which is a program where all the collaborators actually taking part in the specific event -- and then everybody gets -- is to be on the same page and all the messages that we need to deliver when it comes to focus on the following month is going to be related in the specific meeting. When we look at how we've been representing how we've been represented. So our collaborators are, of course, the representatives of our customers, just pretty close to the diversity that we're going to have when it comes to our customers and collaborators. We have 43% of women in the company, 35% of them being leaders in our offices. And then we have another program which is a donates program in which we are going to actually develop these women when it comes to store operation and in their offices so that they are able to have the opportunities to become leaders themselves. We have over 50% of our collaborators being declared, self-declared actually been then we're going to have -- of course, we're going to have we do understand that our leaders are actually going to be ready to deal with the [indiscernible] with our employees. They're also going to be ready to deal with our customers. So approximately, we're going to have a 23.5% of the Brazilian population have some sort of visibility. And of course, we need to have our leaders to be prepared to be able to deal with all the situations. Of course, it really makes a difference when it comes to customer support in that level. So from the [indiscernible] I'm going to open a chapter in which we're going to be talking about really fast about over all this. We made a recap of these specific areas. So we could make everything simple and of course, be a bit more closer to the business. So we reviewed all the pillars of the foundation. Of course, we had young wine production inclusion and, of course, [indiscernible] and financial education. So we had this entire history when it comes to fund and run capital and consumerism and how we're actually going to work with all this, how we're going to create programs in terms of this kind of investment. So we are talking about fee talent at consumers. So when it comes to family entrepreneurship, we're talking about women in entrepreneurship area, of course, formally being work and of course, they're going to consume all of these products. And to increase your income when it comes to famine entrepreneurship, of course, is going to increase our customer line as well. When it comes to financial education, we're not talking about philanthropy as a been strategy and how we're going to act this when it comes to inclusive credit line in sustainable line. I have 3 specific points when it comes to renewable energy, renewable economy and of course, all the taxes and educators that we have, we have 84% -- 94% of our energy part working with renewable energy. So you guys can have an idea. Back in the year '21, we only had 20% of renewable energy facilities. So we had a great focus on all this. So when we talk about the expenses and the numbers, we have 48% when it comes to avoidable costs using renewable energy in our structure. So -- and of course, our energy is a very OpEx impact and operational risk because of that, we can have a better level of efficiency when it comes to energy saving in a better way. And when it comes to renewable energy. As Renato just mentioned, we have people buying from 4 to 4 years. And then we have the entire process of -- when it comes to reverse logistics and recovery of appliances. -- when we work about efficiency -- operational efficiency, sustainability and recovery. We have all the the [indiscernible] of events that we took part and then of course, it involves a lot of transparency and governance. So [indiscernible] increased the efficiency and the risk reduced when it comes to materiality, we would only actually cover the impact and the social environmental impact. And of course, we brought the financial impact along. So all of this stage is actually covered by the business strategy. Looking at our counsel and our -- the diversity actually composed by our council members 57 of them are actually panned and 71 with international experience. And then we have another an education when it comes to multidisciplinary teams. So when it comes the strong areas which are finance market and our strategy beyond other strong knowledge when it comes to strategy and capital allocation, M&A, finance and capital investments. So with all this, we have a very a very distinctive Board when it comes to -- in which we can actually bring the independence executive experience and all this portfolio when we come to a decision-making in our group. We changed a lot of our leaders, but we also trained [indiscernible] of our leaders, and we focused in their development and salespeople as well. because everyone needed to be retrained so we could have the significant change. We promoted people that in the cycle stood out -- and we brought new people in, so we can have prepared people for these -- all these changes. Now when we talk about excellence in execution and expenses of human resource expenses. We need to talk about numbers. And from '23 to '25, we reduced 20% in our head count numbers. And this reduced BRL 44 million a year in expenses. And this was not just about firing people because laying people off as hard as it is is an easy part, but doing this in a productive way with an organizational design with analysis and also knowing that at some point, we needed to grow and open new positions, as we create new areas, we were reducing our workforce. So we worked with automation, and here are some examples where we grew e-commerce CRM and new areas that we [indiscernible] for example, Retail Media, supply and pricing, and we grow those teams. And those teams even being bigger, have a revenue impact that was considerable. So when you look at organizational design, we look at it focused on the growth and the future of the business. And this is not just about laying people off. So how did we do that? We digitalized the sales teams. So we have omnichannel sales. We have data guided or information decision AI agent and automation. I will not go into this because [indiscernible] will be talking about this later. And then the news presentation changed with a more positive outlook for our results. And when we look at that initial slide internally, when we look at human resources expenses, we see a reduction of less 35.4%. The position turnover for critical positions decreased in 66%. And we began to be certified a great place to work with a growth of 6 percentage points. And in '24 and '25, we were awarded as 1 of the best companies in Brazil and retail. So what did we really change when we talk about culture. We use the goals, we have structured cycle for people, leaders that are prepared for changes in new suppliers and training, culture for results and execution focus on discipline. So we made our opposition leaner and simplified and increasing productivity. And we look at the value generation like this. So the culture defines engagement, engagement defines the behavior. And when this behavior -- when this worker really wants to deliver and the behavior defines productivity, revenue, EBITDA, cash flow, and this all adds value to the company. So this structurally defines the path. The path defines the results and the culture defines the speed. Thank you.

And this shows how we created productivity and agility to the company. We became more agile. We are close to the baseline of the company, and we created evolution. And now we are going to talk about the most important chapter. What we've done so far is done, nothing is new. We just reminded everyone of context. But the most important thing, when we talk about what we did and the whole transformation, it's what unlocked things. From now on, we have a lot of opportunities. So I'd like to call [indiscernible] here so that we can look at a different point of view that will be unlocked that will bring a lot of short-term benefits. And then let's talk about the most important one, which is capital structure.

We transformed things in a huge way. So we change over the short term and we have a lot of things to change to add value. And the new stage here for capital structure never ends. This will never finish. And what we have is the optimization and it's a continuous evolution. And we have 3 fronts that we are working on. First, capital reduction cost we are looking for balance and reduction of this cost optimization, the profile of our debt. So I explained already what has happened so far with the reduction of the short term and increase in the long term. And we will continue to work with more speed and commercial proposals so that we can monetize assets and other initiatives. So the first part, we are talking about 2 important areas. The first one, part of our financial expenses. So in our client credit, we have been hiring and negotiating an important reduction of the funding for the credit -- client credit. -- with over BRL 5 billion with 150% of CDI for the -- a reduction that is considerable. The result of this, just so that we have an idea happens in a gradual process. Every month, we pay our debt, and we generate new ones. So we have an average period of 14 months. We get this benefit of 3 to 3.5 percentage points of reduction after 1 year, but this will happen gradually, and it's already defined. It doesn't mean that it finishes. We will continue to look for over time as we deliver results reducing this credit spread. This is the first point. The second is to receive -- anticipating the receipt of credit card payments so we don't have to focus on corporate credit, but it does have an impact on all the rates that we negotiate. So we try to reduce at least 1 percentage point. So I'm talking about credit spread here versus what we have today. So the reduction of 1 percentage point. And the suppliers, and we are talking about the risk of percentage point versus what we had. So we're trying to talk about the growth of the company and having more demand in our balance we had higher expenses, but this is the moment with the new balance to begin to work and renew all these credit lines at best better spreads. This is the type of work that is important for us to do over the year. It's important to highlight that when we look at this, sometimes people from the outside don't understand the change of the dynamics. Back in '23, '24, every day, we had to go knock on doors and ask for the credit line, so we keep operations going. And of course, things weren't so easy, and we paid high rates to keep the company as it worse. Slowly, we improved the new lines with better lines, but we still have lines with a higher cost. -- slowly after this ballast or even before people began to look for us with different stakeholders. We changed the profile, increase the availability of credit we don't have credit restriction in any line. We have credit available for all lines, but there is a pressure for negotiation where we can lower the spread. So what's been mentioned are things that are on the table, they have been done that we have negotiated and we have a different type of funding cost. And the transformation takes time. Some of the changes have already happened because we have deals with other debtors that they were supportive in the past. So we cannot break those deals from Monday to the next. So we are changing all of this in a gradual way. So we expect that we cannot have a full year because there is this gradual change. But if we look at the rates for 2026, the profile is completely different from the beginning of the year. is very different, the BRL 600 million that we see is the direct conversion and the impact of [indiscernible] over 5 years. This is all direct. Indirect is much larger, and we are not mentioning all the benefits that we have for being more flexible to negotiate with suppliers, have better commercial confidence because the credit restriction made us go whatever we could and we couldn't look for discounts because we have different limits. And now our dynamics have changed, and we have a more operational and more efficient operations. But again, we cannot change any structure from 1 day to the next. So we have the BRL 600 million that we have and just about the tax rate, [indiscernible] just so you understanding the simulation and the analysis, we have direct impact in the expenses. For each point, we talk about BRL 150 million in financial expenses, and that's the impact of financial expenses with the reduction of Selic rate, we have positive results in our P&L, be it demand, credit lines and this affects us all in a positive way as this [indiscernible].

The second part will talk about profile optimization, so we have a transition for a more pressured balance to a more robust situation. We're talking about lengthening of deadlines -- so the liability management is very traditional, but we want to take care of all leverages. We want to diversify our funding. And from a more clean fund balance, we can look at other options, diversifying new investors and debtors with more involvement of other market stakeholders so that we can make the power of negotiation in and rates more in and bring us into a lower level of debt and also the financial flexibility. So we can allocate the revenue in a more flexible way. And all of this corroborates the capital debt alternatives. And our belief is that in Brazil, everything, everything has cycles. So companies as big as ours must be stable and flexible. And of course, when we talk about capital cost, the highest diversification of capital sources, the more offer we have and in consequence, we can improve the cash flow. So again, it's not something that we can do just one thing. But each project, each path in each tax credit that we opened and the capital flow and new funds and we increased that in the second stage, and we reduced spread. And the third line new suppliers, and then we have all other alternatives and less cost and then all of this, each access will allow us to be more flexible and we gain the flexibility. And when we look about exposition for short-term debt, we have no -- nothing short term, but we want to have a resilient company for any macroeconomical scenario. We understand that we have different perspectives that will lead us to believe that we will improve but we also had the perspective in '23, '24, '18, '19. And all the years, our life in Brazil, it's always believing the next year will be best. And in truth, it always surprises us. So our duty is to have a company that is prepared for any scenario to generate value in any scenario. And if the wins are favorable, we are grateful and capture the upside and try to generate value. And the third pillar, our new leverage or leverage is movement to bring more money, more net flow to the company and in consequence, reducing financial cost. Two of them that we announced is the sales of participation in a financial company. We're just waiting the Central Bank's approval with BRL 260 million of is what we receive, but we went over this, it's closer to BRL 300 million. We talked about [indiscernible] impact. We're very clear about this impact to add this to the results, but what wasn't mentioned before is that behind this, we have BRL 400 million deposits -- judicial deposits that was deposited in the same causes, and we can raise the information. And this doesn't happen from 1 day to the next because we have to look at each state, and this is more bureaucratic, but in about 1 year, 1.5 years, we'll be able to find this information more properly. Again, this is a gradual process. and go state by state. So this is basically resolved. We have some time still to do the operational area stuff. But we have all the initiatives that we are working on, some faster with a renewed balance, a lighter balance and maybe we'll get better commercial conditions so we can improve and carry out our operations. There's a number of things. This is not extensive. We sold the [indiscernible] bank, and we have the new way to negotiate credit. We have the assets of real estate company. And because of the new condition, we can work on that and negotiate that better with better conditions. We have the tax credit that continue to move ahead. And I mentioned about that when I talk about the tax reform. So there's a number of things that we are working on not only to offer operational changes but other lines that will invest capital in our company.

Again, when we look at -- this is not completely extensive, there's a number of other leverages that we are not presenting. This is an open company, you cannot show everything. But this is just a touch of it. But today, within the insurance companies, and warranties. We have a number of alternatives that will bring cash flow to the company and improve the capital structure. And of course, one, we need to solve what's back there and also be more efficient from now on. So we reduce what we need to do, the cash consumption with the leverages that we had credit restriction. So that's why we are so sure that the future cash flow will be much better than the past.

Thank you, [indiscernible]. We will continue to talk about what's going going for benefits. And we talk about store logistics operations is the core of the company. Fred leads on an operation area. The transformation that has been massive. He had an increase of 40% in productivity and the salespeople become happier, they sell better and so on and so forth. And this has been a path of looking for proficiency. . Good morning, good morning, everyone -- good morning. So now is out to talk about the operation of this strategy. For anyone who doesn't know, Fred, it's Brazilian born in the countryside, we joke -- what about the stacks and his French, but he's already Brazilian has been living in Brazil for 15 years. So he's already nationalized, and he can bring a different point of view, and it helps us a lot in our evolution. Please raise your hands if you don't understand me. So I take care of all the logistics and the important thing. We are a great company in Brazilian retail. And this gives us a lot of brick-and-mortar stores that are very relevant, and we are very close to our clients, how? We have more than 1,000 stores in 23 states with a logistic mesh that is very robust and helps us deliver to all our client customers, but this is a quantitative value. It's a competitive advantage. And how does that translate? Let's translate in an increase in our productivities, and we decided 3 strong things to improve that. First, we reorganized all our stores. we reduced 45% of our stores that were in ICU. But at the same time, we improved the mix of stores by street stores and shopping stores. because we have a very clear idea of what is the winner in this outlook. That's why we focus that the brick-and-mortar stores were in the best possible. This improved our salespeople journey. Today, our salespeople have everything in their hands through the cell phone, through AI and other things that we will show later. But the interesting thing here is that we -- this digitalization is not connected to the revenue. It allows us that the individual efficacy would bring financial results. Also, we had efficiency gains in the distribution centers. We earned 6% of productivities, and we optimize the use of our space and we returned more than 100,000 square meters. And with that, we grew, but we are making use of the technology unique moment. Today, our physical stores are not just a physical store. They became a logistic hub, and we can -- we have more than 250 stores that have this role of the last mile. But the interesting thing is that this year, these hub stores will become hub stores for big and heavy products. And very companies have been able to do this in Brazil. At the same time that we have the omnichannel in the stores, our salesperson became omnichannel and what does that mean? Now a salesperson at a store, they can sell for the physical brick-and-mortar store, but they can also navigate the internal company through the leads that they receive, what subs that most used tool? But this happened because we made a data-driven decision. So now we put in our decision a lot of awareness, science, data and AI. It seems like nothing, but when we see that the AI is present in the salesperson allows for a lot of issue solution that would be a problem for a brick-and-mortar store. And as part of regionalization, this ascension and how do we do this every day with this AI agent with all the tokens that they receive they can demand answer to any demand in any store in any moment in any part of Brazil. And this is a different way of growth. Of course, this was supported -- and I think Renato mentioned well, we are logistics that is more and more competitive. First of all, our national presence makes our network massive, and we can deliver 100% of Brazilian stores today. And the most important thing is that the volume of heavy items that we are able to deliver. And as we bring in more and more clients from outside that want to use our network. And our [indiscernible] will become a service platform. They can service fulfillment, transport commerce. And more than 400 clients that use the [indiscernible] happy and growing. And this made a huge difference for us, for our strategy. Of course, when we look at all of this, we are ready to grow, to go beyond and our growth with data discipline, a growth that will allow us to expand structure in a structured way. We have a number of indicators for this. both for social economic for method and the idea of one as a winner store. And I start that could have a positive impact and the participation of the buy now, pay later is essential for our expansion, for example. And using all this data, we mapped 140 municipalities with potential of which 52 could be prioritized in a quick way. So we are ready. In summation, we have an operational efficiency [Audio Gap] discipline because the scalable growth needs to be sustainable and this is what I had to tell you. And you can see that the operations are more efficient. I think the base is -- the foundation has been created. There's a lot to do, too. We have the road team, some stores improve, some change in the market. Tax rates increase and we go back and reevaluate and adapt. But the main adjustment has been done and we continue to get the fruition of all of this. I would like to call Gustavo. Gustavo do marketing and e-commerce. The operational basis is created, but we are not here to grow by selling more. We want to sell better. with more profitability with the optimization of the capital, improving your working facts deadlines for payment, commercial margin and attachment capability of each product that we can add, credit, service and optimize the margins. So tell us a little bit about commercial and marketing.

Thank you. Always a great pleasure to be here, and I'll begin to talk about the marketing point of view. It's a very important group for Casas Bahia with a very -- a lot of efficiency, profitability, and we have a lot of new things reinforcing our brand, our strength and our leaderships in our segment. I will show a video that shows a little bit of what we done in 2025 and '26. [Presentation]

I think this is the reinforce of how our leadership is actually coming along and on physical towards wanting to look at the dimension of our market. We have 26% of your market share when it comes to [indiscernible] and one of our 3 freezers and 1 out of our pre-TV direction sold by 1 of our groups and of course, which is -- which shows us how good we are when it comes to top of mind, when it comes to capital allocation with a credit line engine, of course, I was just talk about how strong we are with a very competitive approach -- we know that we are a market leader, and we know how strong we are when it comes to preservation of our size and our market share and our profitability. And of course, we want to show the specific space and how Renato was mentioning when it comes to taking back in the acceleration of our digital line with efficiency. This is just a demonstration of the graph since our transformation lines when it comes to the outage of many categories which were not profitable, and from trimester to trimester, we've reduced the size of the company to focus on profitability. And now we've shown that we managed to grow with profitability. Of course, we're talking about a gradual line, reaching its highest number by the fourth semester of '25 for 21.7% of growth, our general market share is set to 13.7%. And so yes, there's a lot -- there's room for improvement with a lot of discipline over profitability when it comes to this. And now we're going to go over a short video so we can have an overview when it comes to the financial project for the past couple of years, which is a pretty good regimen of what we've done so far. [Presentation]

And I think that the big transformation of our model is not only about what we've been selling and how we are growing. So we had a distinct separation over growth and profitability. And I think us and can show how it is possible to grow with rep profitability. So yes, the customers are center of it on. We've been transforming through our CRM and all the date and the auto journey with our customers. We had 100% complete digitalization of our processes. When it comes to store sales and e-commerce, we've been transforming our commercial model focused on capital allocation and discipline, which I think is pretty central in our commercial system and making progressive advancements in our system and of course, reaching sustainable growth. And of course, the beauty of this business is scalability. The more we grow, the better the operational ecosystem improves as a company for improvement. So to reinforce, we have our commercial scale, we have the central pillar when it comes to growth of e-commerce and with a positive margin contribution which will allow us to advance progressively in our credit lines inside of [indiscernible] stores with new suppliers, increasing the level of our ecosystem in a very good inventory level with all the other supplies when it comes to the deadlines, which is, I think, a bit of our strategy as a whole, as you can see, and this is some optics to close in here. just to reinforce what we've been saying so far. You probably have seen it before in more just to reinforce. When it comes to our leadership as a player is a leader in market share in an omni channel in Brazil. We just announced our strategic partnership inside Amazon being a strong player with a lot of customers in a very strategic [indiscernible] advancing one more step when it comes to being an omnichannel big player 1P retail seller in the market.

That's very good and not a partnership coming along, which advances our leading strategy as a 1P player in Brazil. Of course, we had the edge of providing services inside the platform with all of our products being delivered by the company, we have all the commerce data and an incremental service. Of course, when we closed the first partnership, we had the conviction of how the cannibalization would actually come along. And we realized that we had a lot more leads going on. Of course, it was a very positive approach, of course, decrease in the auto logistical ages. And of course, we have the opportunity to advance with our wines and when it comes to products and services, complementing which are going to be pretty relevant to the marketplace. So we remain being the 1P player working on actually supporting the customer whatever he has. So thank you so much guys. So I would like to talk about technology. And when it comes to technology, I'm actually going to call on to [indiscernible], not only leading in our technology department has been actually being a leader when it comes to the transformation business technology is actually a part of our -- all of our leverages that we have now when it comes to credit line, appliance and CRM and supply, everything cranks from that specific source, and we've been working on the transformation when it comes to infrastructure, and been bringing on new technologies to the table, for stand to the company and, of course, increasing our productivity and making a very good transformation process. Thank you, Jas, for all the work that you've done so far. We're going to like you to let you have the stage.

First of all, it scares you a bit, but it's all right. I'm just recovering from an accident ahead, but important thing is to be in here with you and to talk about this very important issue, which is technology inside our group. So just to give you an overview of what we've worked toward, we've been very strong in a platform that connects the entire intelligent catalog and a very strong base of customers financial solutions and services and logistics in an integrated way, not only with our ecosystem that already works in an omnichannel, but also allowing us to open very strategic partnerships whether they be white label brands and having the entire showcase with our partners with a very good marketplace and full-commerce as been mentioned by Fred before, all of these technologies will allow us to connect to our partners and our ecosystem and being able to bring along all the capacities of which is a great focus for our productivity and all the results for the company. So talking about we had appeal assistance for LEM inside our platform. So we have the [indiscernible]. It is an app tool, which is a navigation that comes along with our customers, supporting them in the decision making of our products, and of course, helping them out in all the definitions we have, of course, it really works pretty well. with that has been commended by integrated by an LLM. And Bahia, which is an AI assistant in side or a store ecosystem. So all of our workforce are digital workforce is connected on this LLM. When it comes to open AI and Gemini, our strategic partners are working for these specific platforms, which are pretty address and, of course, they have a pretty relevant usage of tokens. But the most important thing is to bring a better conversion starting from the moment that we are sitting along with the customer and using this tool. So this connection not only allow us to work with LLM when it comes to navigation experience, but we're bringing along a lot the intelligence drive in all the other ecosystems, I'm bringing along a field examples. And here, our catalog, which is pretty robust, is pretty easy to access when it comes to intelligent solutions to make the registration of our items. Of course, we're talking about more than 1,000 items per day when it comes to registration. We had another great conversion for item registration and we're focused on productive intelligence, of course, with more than 82% of conversion. And customization which is, I believe, the biggest fear inside of CRM on how to be more assertive, how to be more accurate when it comes to recommendations and bringing the best items along having a cross-sell per that exceeded more than [ 3 billion ] instead of GMV in recommendations and with a conversion increase of more than 20%. So intelligence is actually bringing along all of these results. another partnership in a case with Google, not only in Brazil, but in a worldwide scale, when it comes to the efficiency of this implementation. So when we talk about the user experience, we believe that our biggest focus was working on the conversion with more customization. So yes, we do not have any more static web pages. We started to actually have a bit more of a context inside the content. And when it comes to credit lines, -- we had a grading the journey in a very simple way inside of stores, bringing along more than 60% of the sharing of the digital CDC inside the platforms when it comes to the online approach. So all the payables platform, we had all the digital wallets and a specific options when it comes to the conclusion of the payment when it comes to the credit line and operation. And the omnichannel is actually 1 of them. We had a 360 vision is dependent on the partner. So we can work in independent way when it comes to the Board. talking a bit more of the construction of the technology. Of course, we have a team of composed of more than 1,000 employees in a [indiscernible] workers with more than 200 people actually working in the IT at a [indiscernible] -- when it comes to the cloud computing, we're divided more than 7 journeys. And I believe the greatest focus when it comes to the year to year of '25 in the last few years is to bring intelligence to this kind of development because more than ever, we need to bring more performance and results. each kind of investment because we know the real importance of these kind of investments of the company. So when we talk about 55% of productive increase, which are going to be the new features for each developer that we already have. So that's pretty relevant. AI is actually helping turn out the new development of new products in the line. So moving along in '23, we have 6 physical data centers and a very complex structure on in next year '26, we have 100% environment actually situated in cloud environments. So we can bring more -- even more productivity for the team generating fiscal weight for this entire structure, which is pretty complex because we are a huge company. But performing in this movement, we had more than 30,000 cloud assets which is pretty important. I believe it's not the kind of expense that doesn't bring actual expenses. It brings cost reduction more than BRL 160 million in savings because of the development. So we have more productivity connected with the future in that sense. Talking about the entire drive for this transformation. We say that the data-oriented company is actually is a pretty robust data like with more than 25 petabytes of data would more than 500 users analytics users actually making use of the platform daily in a daily retain, not only having all of them connected, but of course, we're still working with AI. We had a very interesting case, which -- because back in the day, it was -- we had a lot of work creating all those reports and all the models. And then we plugged it together with Databricks, an LLM model, which provided us an international price for efficiency. And then we had more than a week to bring out those reports in real time. Now we have all the insights available. And then we had all the analytics actually point points peer-to-peer actually. So we had all the behavioral columns actually coming along. So when it comes to manage store managers and when it comes to the entire store governance, all of it was actually built with a partnership with [indiscernible] and all of our corporative data, having the right scalability in line, we had an AI excellence excellence culture when it comes to efficiency and data culture, the entire capacitation of course, all the tools available for them. We have more than 30,000 employees using AI tools -- of course, they've been using it in a daily routine. But not only that all of them through a platform are able to build our own agents. And of course, we help them out with all the training or the capacitation. So these individual cases are actually help us to actually have a better manager of the metrics -- and all the AI tools available come in on a very strong work with all the team bring in more than 340,000 -- well, of course, coming out from year '23 up to this day is another focus point because each automation point is actually pretty good to the client and to our customers and us bringing more than 85% of efficiency. So it's a bit of more of the landscape of what we have with the possibilities I'm going to go over a short feeder to synthesize all the structures. [Presentation]

So just to sum up, I -- we're really working with an integrated platform, investing in efficiency and connectivity. Of course, data-oriented processes clearly believing in the new user experience and a new generation, everybody is talking about e-commerce and [indiscernible]. We are really integrated with all those aspects and strengthening our partnerships with Google and Open AI and among others, so we can actually have a progressive growth channel because we know it's not going to be embedded in all -- in our journey experience. And of course, we have a lot of potential to evolve. And of course, playing as a channel, a future channel inside our platforms and our products. And of course, we're going to have the [indiscernible] orientation asking for Casas Bahia Group. We're going to have the entire fluidity inside this. And of course, we have the investment for that. So the most important thing is to always build all this having a focus on results given a better numbers for the company. Thank you, Renato. So thank you, Jaske.

As you guys see, when it comes to transformation and technology, we are talking about a real thing that's real and the need for us to actually speed up the election. So we have the privilege to have a very robust data platform a robust credit line, which makes for the perfect laboratory for all technology platforms. So that's why we have so many global cases, Google, Open AI, Data Bricks and all the other platforms that are acknowledging our company. And of course, they make the right investments. And of course, the result is coming along that we are able to show it to you guys. And now we're talking about a bit supply in pricing. Flavio, you can actually come along. Flavio has been strengthening our department and a very good thing, which is a nice way -- a nice opportunity window for us to be able to reach better position so we can actually harvest better fruits and have a better information down the line and better decision-making opinions. And of course, we have -- we're going to have better drives, so we can actually have a rupture in the sales department because inventory management is something pretty complex, but there's a lot of opportunities down the line to renew our inventory and increase the product when it comes to inventory management.

Thank you, Renato. Good morning, everyone. It's a pleasure being in here with you guys. And now I'm going to share a bit with you guys of our strategy. And our main pillars at which we are developing when it comes to the enhancement of supply and in pricing. I'm going to start by supply. I'm going to show you a bit of the entire evolution -- and to do that, I'm going to show you a short video so we can have this presentation on a more simplified way for all of you guys. And can we play it along, yes. [Presentation]

All right, guys. So just to make up for a few concepts, of course, we're talking about a totally integrated department. Well, of course, with our stores and our platforms, we have a level of capillarity in a very ample way. Of course, we're talking about more than 1,000 stores and distributed in 23 states. So we had this commitment with is the increase of efficiency when it comes to capital investment. So it brings a lot more availability of products in our channels and our stores, and it will reinforce a sales increase. So for that to happen, we have 3 main pillars in all this. So the first one is going to be the regional sorting of the product. So we had a review of all the store cluster and the entire review of the regional sorting of each specific store, and it brought us to have a more aligned mix of products. We had a sales curve the rate of 95% of all the regions. And of course, we had an increase of conversion. We managed to enable the -- the second stage because of that, our second pillar, which is the new prediction and the [indiscernible] platforms. So we had the need to improve the accuracy of the rupture the to have these the access and the specific stores. So we had this AI model utilization now. Any adding inside the model, the seasonality and regionality and suppressed the demand which is a bit more robust than that demand. So through all those calculations we made, we had a very good evolution from a SKU and its store when it comes to accuracy, which enabled us to create a new supply engine, supply drive. What does it do? It leads another dynamic level to all the parameters that we actually have an inside platform, which is more agile and efficient. We had all the supply -- the daily supply demands from and rebalancing of inventory in a more dynamic way. And it brought along, of course, new -- very positive numbers with the availability of 20% of a store space and a reduction of 23% of store dispersion when it comes to inventory coverage, which is pretty important. So moving along, I believe the second top is going to be the pricing -- and now I'm going to show you firsthand video so we can have the evolution -- an overview of the strategy evolution. [Presentation]

So inside the concept of pricing. So the first pillar that we have available here, we're talking about the pricing regionalization, the entire -- of course, it's been boosted by AI, and it places the balances of the micro region balance to bring, of course, better profitability. But so for this to work, the first pillar was to understand the positioning -- the market positioning. So to do that, we have a twofold strategy I believe that the offline would be a robot due to the best pricing of the market. But on the off level, of course, we're talking about more than 1,000 stores and distributed around 23 states and more than 500 cities. So how do we do that? Along with Fred's team, we created a weekly system for capture -- data capture and data collective with our competitors. So we can have about continuous monitoring so we can have an idea of the positioning by category of the most relevant items by city, and it brings us a very good relevance for decision-making aligned with the company's strategy with a lot of agility. And of course, all these adjustments are made in a very dynamic way. For this, we had a new pricing drive and this new drive is actually AI-oriented, and through this, we were actually able to drive all of our project to have a better optimization, data optimization performed by it. So yes, we have a very a robust drive when it comes to price. And the third pillar would be the omnichannel pricing in which we need to understand how the positioning is actually reflected upon the omnichannel concept, which is a reason of optimization when it comes to channel a better integration and pricing optimization, bringing competitiveness along in the market. So I would really like to reinforce a final message in here and representation of the 2 specific areas, boosted by AI implemented in the business. We had the commitment with capital allocation, investment optimization, of course, they have in a better -- on a daily basis through an AI and incorporated in our decisions, always taking into consideration all the data to strengthen the agility and decision-making issues, boosting the availability of our products and profitability in the business. So that's it.

Thank you, Flavio. Information the supply area. We have a great game with this regionalization because we can optimize the inventory. So we have to optimize our showroom, which is the largest in the country, even for other sites and sales channels. And this will help us with the revenue and we look at the regionalization is not something that the model evolved. The system wouldn't even allow us to have individual pricing per store. So this is very relevant because it was very difficult to transform our system. Remember what Jaske said, when we look at that in suppliers and physical data center into the cloud, we have the whole transformation of language. So the future transformations are also easier, but we did a very, very powerful work to get where we are and be able to have these regional gains. And this cross reference is important because sometimes the product promotion would damage a possible gain in another area. So using the product that give us more return rather than sales, it makes a huge difference. So it's a better [ EB ] denominator looking at the ROIC for invested capital. And now we are going to talk about the new leverages for financial solutions. And I'm calling [ Vitale ]. He's been leading this structure for a while, not just the customer credit, but services, insurance and the whole infratech and banking that we have supporting the company. This is probably the main engine for value generation and the journey is amazing. Thank you. You have the floor.

Good morning, everyone. Thank you for your presence here. It's a great pleasure to have you all here. And it's a great pleasure to be able to share with you our financial solutions and what we see of opportunities for the next steps. First of all, we need to have a reference that this financial solution ecosystem is here to extract value for the Casas Bahia scenario. We have 16 million clients and 2.4 million suppliers. And that's why we created 3 main blocks: credit where we try to have a wide portfolio to capture value in all the journey; services and insurance, where we generate convenience and security for the customers' daily life, be it with us or other moments in their lives; and finally, the Infratech arm, where we try to create solutions for these B2B system for Casas Bahaia. Be it Casas Bahaia or a consumer or our partners that also need financial solutions for B2B, and we are maximizing our ecosystems, paying attention to all these opportunities. We begin with the client credit. We have 7 great credit solutions with different levels of maturity, and I'm going to look at each one of them during my presentations in the next slides. And we will begin the great driver the great driver for transformation and growth, which is the client credit line. It's important to mention our -- at this in looking at our history because when we talk about consumer credit, it's a long-term journey, and this is never 100-meter sprint. This is at least half marathon or a whole marathon. And when we look at our story, we've had a consistent journey. In this graph, you can see the production level the buy now pay later, clean credit. And last year, we reached BRL 10.2 billion in production of our customer credit, very robust line, and we doubled our production on these over the last few years. Very few market players can create clean buy now, pay later credit in this scope and some medium banks can operate with similar portfolios for these type of products. But above all, more than moving forward, is changing the layout. So we moved ahead looking at operations and stores, but we also diversified. The digital product, it's our proprietary. We built this product around 2021 with the stores. And then now we reached 10% of everything that we finance online, which is historically generating BRL 1.6 billion in credit. It's a very profitable solution, and it goes beyond our limitation for motor and brick stores in some areas. And this maximize a lot of our services. And as well as growing is to keep the nonpayment stable. Nonpayment is non-negotiable. We want to grow. And over all our conversation, we want to have sustainability and long term and the nonperforming loans is a pillar in our decisions. And we have 6 years of non-payable loan with the world president, we see a very controlled nonpayable loans. And we know that, that's not easy. It's a daily life with very cold seasons. And when we look at this market, we clean products in the same situation, we can see how the stressful this is, especially during pandemic. We are in a moment of the market that is largest during the pandemic which was the largest numbers until then, and we have the margin of the product with the interest less loss that is extremely healthy. And in 2025, we beat our historic numbers with historic margin. We left from [ BRL 1.5 billion ] to 3.2%, and nonperforming loans is very stable, and it reached BRL 1.6 billion of generation or liquid revenue. And if we look at IMO, we can see with -- that is very robust. When we look at the slide, we can see what is behind this driver. We decided in a very significant way this is restructuring, and this will be fundamental for the next steps in the next growth cycle for this. And this likely have the whole strategy for the new generation and data-driving and AI models. Casas Bahia customer credit has 4 important pillars and that's where we structure ourselves. The first one is a statistic modeling. We have 27 production model with more than 4,000 variables, 45 combinations per channel and this give us the capability of approving BRL 50 billion in credit for approved credit. And we have 9 million clients using information that our internal information. Without looking at the market for this information is the type of credit that the market cannot assign to these customers, customers with more difficulty for getting credit and history and profile. So this is a proprietary asset and 1 of our main differentiators. We have the model creation that is very quick. We have a time of 3 months for the development of the month versus 12 months model creation, and we are very excited with the next generation that brings a KS of 10% more and will open more growth for us. Consider we have customized policies for these new generation models. So we have per channel, per product per segment. And when I look at the cell phone is a higher risk than the furniture and our policy has to consider this distinction. So we have customization, behavior scores. And the third pillar is the pricing pillar. So we have customized models and customized policies by region and channel, and we have a pricing with more than 3,000 combinations to give the return in profitability for each internal area. And this makes us -- we have an example of the new segment. I'm always having champion challenges at the same time with a number of policies. So if you look at new segments, our 4 main segments to multiply by 4, I always have even though we have a camp of policy, 48%, the red 10% are the next policies that we will be testing. And then we have the 48% for the performance. And to think like this, we're always thinking what are the next steps are extremely important so we can certify the growth in credit and keep the sustainability. The third is the journey, the retail credit because the good client has less tendency of bad journey. So we went for a 30 field reduction for 1 field only with the social security in Brazil, it's a 98% automatic decision with facial biometrics, digital signature and the management of the payment installments in our bank app. So our Journey pillar has evolved a lot. And last but not least, is the predictability. In credit, even more important than what we will do is when we do it. And that's why we need the predictability of our portfolio. And we are able to do projections and predictions of known payment in a very, very firm way. From the moment of the production, I am producing this month. I can predict what the nonpayment situation in the mix of risk [indiscernible] are reaching the 30 M2. And I'm already looking the M2, which is 2 months after creation and concession. And we are looking March and looking [indiscernible] and predictability is something that has evolved and our ecosystems is about the solution engine of fiber connected to the best [indiscernible], all these ones that you can see on the screen, exactly so that we can have the best decision for consumers. And looking at our pilot factory, we are always thinking about new partners that can add our origination. When we look at the next steps for the by now pay later, or consumer credit something that we think is knowing the population of the region. And we do not have their barrier. We operate credit in 92% of the municipalities of the country. When we look at the geographic form in a very capillary way, when we look at the profile of our clients, when we think about future opportunity, we separated in 3 main personas: Retiree, 50 plus; 30 to [indiscernible]. We have 70% of our profile, 2.3 million consumers. And we look at the active population that has this profile. We talk about 64 million people they have the profile where we can tap. And right now, we only reach 3%. Look at the potential growth of this. And we look at the sensibility and we move forward in this 3% over the BRL 64 million and with 2.3 million clients, and we produced BRL 10.2 billion. When we move ahead, if I reached 6%, I double the revenue. So if I reach 10%, BRL 34 billion. So the avenue -- there is a clear avenue for growth, and we think about that 10%, 9%, 8% market share. It's not something so unfeasible when we look at about the segments that we are present in with the line over -- white line is over 30% and so on. it's reasonable to see that we have a lot to move ahead with. And we have clear leverage for for this evolution. First, accelerating the customer credit which is the whole company. I apologize just a moment. It's a program that we created for the whole group as a strategic movement where the customer credit is the center of the business. And this is the cross goal for the whole company. We have advanced segmented by micro region and store that we need to customize even more the credit creation where we select the variable data defined by region and a journey of credit creation through AI. So you get the client with a journey through AI. So we have the sales journey, and we don't have the digital sales journey. And this is a new avenue to explore, especially for the clients, they have 50B preapproved credit. And finally, the creation that is clear with customized offers for buy now, pay later marketing and CRM. And with that, we can see very clear great avenues for us to move forward with that. When we look at the second credit product, the credit card, it's also a powerful foundation. We issued 1.4 million credit cards with 15B of revenue for the company. We doubled in comparison to the few years before. But what does that mean? With the client base, 1.4% remains 1.2%. So we have new leverage to expand in that. We have a sensibility analysis that 1.2 becomes 1.4. We're talking about doubling the number of cards, and we still have only 2.3 penetration and that could bring an increase in revenue of about BRL 30 billion. And when we talk about that, it's about 28B credit portfolio for credit cards. We have clear leverages for this. First of all, is the [indiscernible] clearance with 119 stores that are very powerful with higher average ticket -- and we hope 440,000 cards a year from these stores, and we will begin to produce in Casas Bahia ecosystem. AI, also in activation and us. We still don't have that for the credit card, a frictionless journey so the journey can use only store biometrics and hire the card and gaining share for no areas that are not occupied and we are creating a strategy to expand both geographically as well with a great potential. Another product, it's as a supplier credit line. We begin to operate with this in our B2B vertical process, where we have [indiscernible] and the operation -- bank operations operating. And we have BRL 22 billion of payments to suppliers a year. So there's a huge opportunity to operate credit for them. And the analysis show that if we operate 50%, 10B of this volume is almost BRL 900 million of revenue for this line. So it adds value for the suppliers and investors. So buy now, pay later is our credit intelligence. It's that we are bringing to other partner ecosystems. So the idea is to bring the credit to other environments, optimizing information in our database giving the credit to our clients in buying other industries. So it created a transparent checkout with more approval indexes, prologued in place. We are talking with great players, be it retailers, construction, tourism in marketplaces. So here, we make -- we have an exponential growth of the market and also our profitable solutions. And we are officially launching the first player that we have in this partnership, which is CVC travel agent as a funding and financing for traveling. And this will expand our credit market and we'll bring this profitability that we are following in this business. The last one is the private retirement fund loans with BRL 120 billion yearly is a very powerful market. We want to launch this in 2026 April. And when we look at this market, look at how powerful it is. And then in the market of 2024 is already a market of 9B month. So it has very little risk. It's credit with a lot of reach. And when we look at [ BRL 116 ] million, many are employees, and we have a great opportunity here -- and if we look at this for pre payroll loans, we're talking about 1B, if it's 3% of a business that can bring BRL 6 billion in this production. And we even have 5% of the market only with a very small number. And these are the leverages so store checkout, app in the banking, in the stores, with AI conversations and operating through [indiscernible] with our investor partners, which is the MO that we already have in the company. The last 2 powers, personal loan and installments, and we have Casas Bahia ramping the product, and we are developing channels and with a very promising future in our ecosystem. Personal loans, we are operating with intention with [indiscernible] partners and we have BRL 400 million with a 60% margin, very profitable, and we only have a 0.1% penetration. So we have a lot of opportunity, and the consumer purchase pool as well. When we look at the second pillar, which is the service pillar, our service portfolio is very broad, complete. We have extended warranty life insurance, home insurance, theft insurance, some furniture for any moment in their lives. And it's an ecosystem that we increased the products and the revenue. We had BRL 2 billion revenue in services. This is a very significant business. And when we look at the market penetration of these products, how many came from the credit services, 77%. So we see that the customer credit is a driver for a number of business. So if we were an insurer or affinities, with official [indiscernible] data, Casas Bahia's 1.7B, we would be the largest insurance company in Brazil. So we see here how Important, this ecosystem is if we can position ourselves properly. So looking at the sensibility analysis that I did for the consumer credit if I expect some kind of growth with the consumer credit, you can see that the service will also grow along with it. And we have a potential growth in a significant way. Where our final pillar, Infratech. It's a pillar where we have a proprietary structure that reduces cost and the ecosystem control. So we have a number of solutions here to guarantee the control and the security in a stable time for fintechs in the market and proprietary structure for banking presentation is a great business differential, all with our own licensing. So if you look and you have the payment management, we have direct credit society, so we can do any type of credit. And we are going towards developing for this license for SFI, which is the credit society and funding and investment. When we look at our banking penetration system, we already did that to 24% of our fintech. We have a potential of 6 opportunity, reduce expand, maximizing use. It's an operational process that is expanding. Core banking for payment credit and promissories and we have a lot of 99% opportunity in core banking with the solution within the ecosystem. It's a rollout objective and we also have the merchant acquiring, and it's BRL 30 million for the TPV. So we have BRL 14 billion for debt, and we can maximize debt and reduce the cost for the company through this line. And also, we have the investment pillar that we begin to operate as an investment organization and the funding capturing, and we can operate with the capturing of funding of sales and apps and the whole banking penetration and session for the fund that is financing that sale. When we look at these final considerations, in the same slide, everything that we talked about the opportunities and the idea was to show all the products that we have, all the products are operating with a lot of room for growth. When we look at 160 million clients, look at the client credit, 2%; security insurance and services 1.5%. And you can see all the small share that we have. So the more we move ahead, 3%, 4% we have a significant expansion for our contribution. So we have a clear avenue with a well-designed plan for us to continue to move ahead over the next few years. In considering this new moment, of portfolio expansion and ecosystem for finance, we need a new brand. We began with the banking, and I'd like to introduce you the new financial imaging. For more than 70 years, Casas Bahia is part of Brazilian people's lives, 116 million clients. In 2020, we had Bank to expand credit access. Today, we have over 7 million Brazilians that have bank penetration with a robust portfolio that is integrated to retail. We have -- we are moving with a complete ecosystem repayment credit loan and insurance and services, and we built a solid business. In 2025, we have a turning point with a liquid revenue of BRL 37 million, a landmark that shows how mature and sustainable the model is. And now we begin a new chapter. In 2026, bank becomes in Casas Bahia pay, incorporate the strength of a top-of-mind brand. More than a change of name, it's the consolidation of a financial ecosystem that is more and more integrated to retail. If Casas Bahia has always helped Brazilians realizing their dreams, Casas Bahia expand those realizations. Welcome to the new age of Financial Solutions with Casal Bahia Pay, a complete dedication to your dreams. Thank you all.

That was excellent. When we look at this consumer credit, we see that is a macro challenging environment. We are still growing with BRL 10 billion in 2025 is no peanut. It's very powerful and relevant when we compare to other marketplace. Second, we don't prioritize growth. We control the nonpaid loans and we have control, and we are disciplined. Third, we have a great potential for growth for all the finance aspects: insurance, credit, services and so on. And this will monetize the platform. I would like to call also to talk about something that was not talked a lot but it's something that is very important, the tax reform, but it's important to shed some light because we see important leverages for our business, for competitive and we have the operational exoneration. And in consequence, we will bring some benefits in the medium and long term. So the tax form is being discussed a lot in the country and it has been becoming more and more important. And I'd like to focus on the retail and our business. It's clear that our main point here is the tax reform is not a tax change. What we're talking about, it's structure change in a way that the retail will operate. We have the tax reform that will bring the simplification of the system. We will eliminate the distortions and judicial arbitage that happens in the country. You will bring the taxing to the destination. You will introduce a prepayment contact that will reduce the informality in Brazilian retail, as we have the tax recollection at the moment of payment, and we have a huge impact in the reduction in formality as well as the revenue the structure of our retail. So changing a bit of the logic of the -- all the companies as a whole were always used to taking decisions based on the fiscal [indiscernible] of course, what will prevail or all the decisions for an economic concept, it's always -- it should have actually been this way. So we have 3 specific impacts that actually change in a bit of this competitive retail market concept. So we need to have a balancing of the price. And so when you eliminate all the incentives in the fiscal sites, of course, you're going to have different prices of the online platform. So essentially, we're going to have the same profit. So we have a crucial difference inside this online platform in fiscal one because of the fiscal differences. You're going to have an approximate with the pricing of the physical stores and the online platform, bringing a competitively sort of field. So at the second stages when it comes to logistics, we're talking about economical logic, not on a fiscal bond. So clearly, in our company and with the mention of our logistics, we make the product actually run around just because of fiscal efficiency. And from now on, we will be able to follow a new network when it comes to the development, a new scalability because when we talk about logistics is actually one of our main pillars, and heavy items. Of course, we know how to play this game pretty well. So we need proper scalability to have efficiency, and we possess that leverage. So each time we're going to have the edge in this kind of play. And of course, we're going to have the financial impact when it comes to the cash flow and of course, every market and also having the reduction of feeling this level. So I'm going to go over -- have a quick overview of how we are actually positioned and ready for this reform that is actually on its way. Of course, we are still working when it comes to the system point of view, completely adequate, having all the information actually for the government organs and of course, our physical stores tends to get more relevance and more strength. So there's a natural trend moving along and a pricing that is making the online platforms have an advantage. So the reduction and the balancing of throughout the years and of course, having a the complete equalization of the -- due to the reform and the elimination of this fiscal distortion of pricing. And when it comes to logistics, I've already mentioned it. So when we put it all together, our [indiscernible] when it comes to brick-and-mortar and internal logistics, when you come to the intelligence of pricing and the sorting, which was mentioned by Flavio, all of this operational management is giving us a good position. And of course, the reform will actually shake the tectonic plates of the market. And we are actually anticipating all these steps and we're going to be able to position ourselves having better relevance on the adaptation of this specific process. So the final item would be the split payment, bringing any impact on cash flow in here. And now we're going to have fiscal credit [indiscernible], of course, having around BRL 3.3 billion been turned to CBS, which are going to be credit in this moment. So relatively speaking, the entire market is going to have this impact in a very relative way. We're going to have all these credit lines available to make an upfront in the specific stage. So of course, it's going to impact everybody. But when it comes to a point of view of cash flow, we're going to be able to monetize the expenses that we're going to have any impact they're going to be placed to the home market. So I believe that we are well positioned. We really understand what's going to happen, and we are working on every leverage inside our business to be well positioned in a very strong way with the tax reform. Moving on to the next chapter, having a quick pause advance into the final leg of our stage. We want to talk about capital allocation and be able to stitch together everything that we put so far for the initiatives and the leverages that we have and how we're going to see -- we're actually going to see this comp as a whole. We talked about all the fundamentals when it comes to the entire 5 layers and the [indiscernible] program and having a company actually looking to the entire concept without having the financial bureaucracy. But we put more in a more simple way to the entire company. And then we have the final 2 blocks, I believe Renato is going to go briefly over the operational decision when it comes to the layers from 1 to 5 and the real allocation of capital, how are we going to make the real investment and how we're going to see all this stage. So when we move in here, we obviously -- this is our main agenda where to invest each set that we have available in the company. And we have -- we can actually pick a specific product or a supplier in other category. When it comes to a sales channel, we have many aspects that need to be considered. I believe that the most important point in here, obviously, of course, which is pretty easy to look at. So what is the commercial margin of each product in each sales channel, if we have enough penetration, of course, all of this we are reading all integrated within our hands. So we we need to consider the second part of the equation, which -- how much I'm actually going to need to invest this kind of in here. So when I have a denominator side is both at -- it's not a trivial math. So when I have the inventory when it comes to accounts payable when it comes to receivable, which is pretty real. We have in the lower part of the slide in here, 3 specific simulations. So just -- that we can show the margin difference of how different it will actually be eliminated by the difference of ROIC. So we have this 23%, 39% scenario. So the total margin of we're actually talking about when it comes to credit line and penetration here in services, I have a 68-day deadline for the medium deadline focus. Of course, the working capital delay is actually set for 25 days. So when I look at my road, it will actually give me 8.5%. So I have a value destruction when it comes to the company investments. So this is just an illustration how much actually working to the broad margin is not an efficient and very simplistic point of view. And of course, we'll actually destroy value. So we need to optimize these processes and many lines to have a better margin, sometimes a bit better, sometimes making a better asset quarterization have 10 optimization. Of course, I'm going to have a better work than compared to the other lines, consuming much more capital. Now we're going to move on to the effective allocation of the capital of each specific sent that we have invested. So now we have talked about the precomponent of the cash flow in the year. We had 121 days of the specific project with a very strong adjustment of the jurisdiction. First one, but discontinued categories and the production of the inventory of the most of the oldest product. Now coming back to the second semester of '23, we afforded the maximal of stress of this machine without any ruptures coming along from 130 days of course, making a level of other 90%, of course, we would not be able to support this entire process. We managed to have a testing it out so we reached a more stable phase near to 90 days, and I believe that the next page from now on is to be able to optimize our inventory, maybe the partnerships that we've been working along with LNA and Amazon. We're working with the same inventory to have a more competitive 1 when it comes to our market, but we have a feel of efficiency. Actually combining all this with all the initiatives that we have distribution lines and supply and distribution at and being close to them being closer to product on a competitive level to place them in the right place, they have a better efficiency behind it all to have a trend of inventory increase for the working capital. When we talk about specific item, it's impossible to actually be setting up with this. But of course, we're talking about a very huge deadline. So yes, we have a lot of leverage to increase our distribution because we there's a lot of room for improvement. And we need to develop a new better model to adapt to our complexities. And when it comes to the entire clusterization of the specific stores, so we can be able to operate in this level without being affected by the structural level. So yes, we believe that this trend will happen, and we will be able to deliver in a very progressive way. There is no change overnight and a constant evolution when it comes to bringing all these numbers in a very consistent way. When it comes to all the suppliers, we had a deadline of 10 to 12 days. So we had this event back in January 2023 and our competitive competitor, and of course, producing a credit contraction in a very strong way, whether it be from the suppliers or the insurance holders. Of course, it was a very important segment, reduced the beltline for the payments for our suppliers compared to the big players. So I believe that was the first great movement that we actually faced when we moved in and that Renato actually mentioned the Chinese market moving on, any other players moving to our country in which we were able to deal with better deadlines. And we made an equalization -- a proper equalization of the payment in an average of 120 days. So what's going to come from now on. With all this transformation going on, we want to take back with all the other traditional suppliers, at least at what we had back in the day if not more, of course, we're going to be working hard for that to happen, but we need to return to initial stage and a penetration of the new players because they need to keep on advancing whether it's inside our own portfolio, or advancing on the payment deadline. So we see a clear trend considering, of course, all the seasonality that we have, but a positive trend and in our inventory and operational levels and suppliers, of course, having the actual -- the current scenario. Just to give you another point of view, which is pretty important that we haven't been talking a lot. If anyone could have me actually invested on the next slide. We have accounts payable. And here and generally, we have an anticipation of this process, the deadline -- the original deadline for this because that's would count because when you make an advance of your process, of course, I have this financial cost. And we need to have an over -- the bigger image of the entire situation. So we had the financial cost and operational level, taking into consideration the original customers. So we have this cash flow side on a complete level. And we see a reduction curve coming from the last couple of years, presented in a few a bit of a disability when it comes to 115 to 120 days. That's the kind of concept that we need to work on. Of course, we have the financial costs and silly taxes running along. That's where we need to actually make a gradual improvement when it comes to inventory or the suppliers. Of course, when it comes to customers, it's a bit harder to work with them. Maybe if we come with a project of installments of settlements, maybe 10 for -- so yes, it's a bit more complicated when it comes to our industry and how the customer is actually going to pay. Of course, we're going to have to respect them. Of course, when it comes to the taxes rates coming along, in a better situation. But of course, we're going to be working more and more in inventory management. So when these numbers go down when levels of efficiency and the suppliers coming up, of course, we have the gain of levels of customers and finding that we have when it comes to installments, the marketplace have the funding for working days. So we have better deadline. So the relevance is actually being contributed to reducing those numbers. That's why we're bringing a good potential to reduce 10 to 15 days the in a very substantial even when it comes to working capital liberation for the company. Moving on to the next slide, please. And here, we're going to have for the CapEx, which is -- we're talking about cash flow in here on the CapEx, we just the second pillar. So we have a reduction of the first year by the year '22, we were pretty strong in that sense. And now we're living in on a stage, not a decreased one. Of course, we have better discipline in. Of course, we have a lot of technologies coming along. And we think that we are -- that is a part of the structuring of the profitability of the project. Moving on to next one. And then other capital allocation leverage is, of course, a credit line to come available, of course, every cent would be on working capital inside every specific department of the CapEx. And of course, we have the other leverage is still under development and starting from now on, we're going to be more stable to work with this new leverage, which are the suppliers and the stakeholders on a credit line that we still did not advance on that line, we did not monetize on that part yet. And then the final point is the every cent that we have available, we have the decision-making distributed on CapEx, our inventory or credit lines and accounts payable to accounts receivable. So we -- there's a lot of room for improvement to actually increase our credit lines and to be able to have a better supplier relationship. That's why we have a lot of conviction of the expansion of our returns. So yes, we have a lot of cheer coming along. So we can open up for the Q&A session now. So moving on to the next slide, now we talk about the pet to profit. So basically, it's just the summing up of everything that we've seen so far. This is just a sum up of how the company will actually reach profit. When we talk about the entire average movement, we talked about the main pillars that will sustain operational management, which will bring more sales conversion, cost reduction, expenses reduction and then we have a few opportunities along the way, which are pretty relevant for our company. When we think about the usage of AI in many fronts and a very robust CRM in a more customized way which will increase sales conversion and increase our capacity to actually get the better capturing from the clients. So when it comes to the financial results, we just performed a balance the renewal in the credit we're going to have available. Of course, unlocking other leverages just like the asset management, which will bring better capital to the table, having a better liability management, stretching the spreads, of course, bringing better result along the line. And then the third pillar, which is operational leverage. So when we talk about e-commerce growth and not only e-commerce but our fiscal tours, this is bringing a nominal additional margin. You guys always talk about the raw numbers, 30% in that case. But how much am I really bringing in terms of cash I'm bringing to the company, for a dilution for the GLA, which is pretty relevant for the operational leverage with this -- the macro situation of the way that it is, we're not going to actually speeded up. We're not going to keep the company as it is. Of course, we're going to increase operational efficiency and bring operational leverage and that level. And it will also bring, again, in the specific last pillar, which is the penetration of credit and services and other income sources we were just talking about media back in 2 was nothing. But in '25, we've made a profit of more than BRL 200 million. Of course, we need to increase the numbers. When it comes to credit lines and a digital platform, and of course, the physical stores are bringing actually a better penetration of services. So we will have those lines coming along. But when I make the credit lines increase make the consequence for the financial services to bring a better margin. So all of this bringing better definition when it comes to strategy, a solid culture to bring our consistency we will be able to break down the path to profit. Of course, it's not going to come up or night, so we're convicted that this will actually work out for everyone. So the future in set we're going to have maybe to the next 1 I'm not going to repeat myself. We're just going to go over a bit of our strategy to be the greatest 1P player. So we would like to bring a bit of the overview without guide us in numbers. But how we're actually going to -- we're going to be able to see the company in the future. So here's a GMV model at this specific dimension of BRL 44.7 billion. So the growth comes from, as you can see in the illustration of repo that we see on a short-term business in the next 3 years, a growth of the e-commerce platform. But when it comes to the fiscal stores, which is pretty relevant, and look at the GMV indicator, which is pretty live, of course, it's going to have a better profitability indicator into taxes. I have the operational constant here that the growth of the margin, of course, and bringing along financial solutions, having additional margin, and we have the total GMV in a final. Of course, we have other business in its like other services for third-party suppliers inside our share of our peer when it comes to [indiscernible]. So now looking at EBITDA and looking at the company that's a reflection of our EBITDA, which is said from 8.8%. Of course, it's pretty -- of course, we want to put in 2 specific digs a percentage. We were pretty skeptical about all the things and now having a bit more of a consistency in the process. We're bringing along with the same thing. The gross margin, of course, I mean a bit of commercial scalability bringing a bit more advantage to our feet. We have more suppliers, of course, competing for the same market. I have more lines -- more service lines that would give us better credit lines. And I also have a sales expansion in all those stores and productivity along these 3 years. So would we talk about open really so of course, we're not going to have anything related to 1 thing to another. But yes, our expansion will be given only after we have a robust cash flow and have a more macro situation in more than 200 cities in which we're aiming for our expansion. And for the GMV, we have a greater impact when it comes to operational leverage. We're talking about the increase of our logistics expenses, but the operational leverage is the most paramount topic inside a project contributing for strong EBITDA margin when we look for 3 years ahead of our company. So moving on to the next slide, we need to illustrate what's actually happening to our gross margin. So before the taxes moving into the reform actually coming along, so the first block is actually the financial results with everything coming along with this new balance contributing that having at the pillar along would make the net profit positive number and a very reasonable coming along. And all -- for the gross margin at G&A, we'll make the company become a very good number generator in this specific land. So my final point of view, my final taken this, when we look at this, believe that the entire acetate, looking back at '23 with a lot of challenges ahead of us. Of course, it was pretty hard to make a profit. we would actually look at a scenario when the -- we would look at a company, but of course, would generate a bit of profit, but to generate value, it was a complete different story. But when we actually serve on each opportunity that we had in our risen, I was convinced that this market, given that the retail market is not an easy scenario to collaborate and invest in. Of course, there are a lot of opportunities in line. We were able to get a value generation of get spread. And then we're going to create a very good key scenario. And I would like to I really would like to thank everyone inside Casas Bahia Group and the support from our stakeholders and our council members, all the Board members, only stakeholders, investors, all to everyone the customers that have been along green in the story and supported us in a very incredible way to -- and allowed us to perform very harsh decisions, but we had very quick results over all this. We had this conversation internal conversation that saying that it's pretty hard to actually build things up pretty easy to actually make things come along. So the turning point show us really that we have a quick fix on the specific. So my conviction in here is with a lot of discipline, discipline is pretty important in this specific scenario, but because any deviation will actually make things go down. So if you have consistency, if you have this thorough pursuit of this objective without making -- jumping up along your horses, you can actually delivery, you can actually make a delivery of very good results in the long run. So moving on to the next slide, please. So we could open the session for the Q&A now. I would like to have all the executives from Casas Bahia Group in the state. So we can open up with our Q&A session so we can actually have a deep dive over in topics. Or if you have any other questions related to any topic that haven't been managed by 1 of our directors because normally, these guys are actually working their assets now so to bring them over to the stay and be here is a very profitable opportunity.

Thank you so much, everyone. Thank you so much for your participation and presence. Let's start with the Q&A session. Now I would like to -- for the 1 to make the questions, please, have a quick introduction. So the entire team actually be able to know you and go straight to the question at who -- any questions coming up? Pedro, I believe you're up now.

Pedro [indiscernible]. I would like to thank all of you guys for the presentation. It's pretty cool to see that we remember the presentation that you guys had back in 2, and it's pretty cool to see all these 3 years of evolution. So congratulate to everyone. I have many topics to approach, but I would like to strike 2 specific points in here. So we can lease space medically make other questions. The first 1 is I'm bringing 2 points together. The concept of Rod that you guys are actually bringing to the table is pretty interesting. So when we get this discussion along with the topic of actually having a better the working capital working in a better way. So you said it when it comes to the marketplace -- the market partnerships in the marketplace actually are increasing their operations. Of course, we have the embedded take rate inside the process. So I really would like to understand by the time that we have the proper share inside the total mix, how we would actually get the proper image of our -- the concept of the entire write institute would be actually be applied out. So in the last instance, I believe it's actually going to depend on the answer. You have a limit target of how much the penetration can actually have a GMP penetration? So strategically speaking, how do you guys actually think it out? And the second aspect, just make a connection since the entire journey up until 2019 up until '23, maybe else we can actually ask me in a better way. So we would always strike credit monetization as counterbalances a burden on a labor line. So I believe that you guys are pretty -- you guys really overcame this kind of pain I would like to see this kind of understation in how you would see this concept in an overall situation?

Just -- well, the first question here about the marketplace, ROIC, and if we're really going to have a limit available in our line. So when we look at the bigger image of the marketplace, we have a contribution margin or profit for the [indiscernible] here. It's not the best margin that we have in the past -- in the last layer, but it corresponds to half of the half of actually of all my other sales channels that I have available. So of course, we're talking about the concept of demand of profit. So yes, it's not even better than what we have inside before. So increased 1% over the price I'm not going to be -- lose a bit of sales. Of course, it's not related to the strategy between sales and competitiveness. If you resolve -- if you actually take the action of being the best pricing player or if I'm actually a bit more expensive to have difference in specific degrees. So yes, so we have a life creative and valid creative lines here going in the marketplace. So we've been managing to have a better take rate, which is pretty similar to all of the other consumer acquisition line. So when you have your own channel. When we're talking about Google shop in CRM or other affiliates, then other leverages that we have available to bring our customers to our own channel, our own legacy channel. So given our scalability and our relevance to, we know that we have a better profitability inside these market places. So before bringing all those limits together, there is an aspect that is a bit more beneficial rather than we had imagined. Over the concept of this higher marketplace and the sides concept. We're always going to have a cannibalization of some sort in every level, given all the previous socks that we had and what we already had in terms of numbers and data. It was -- the incremental part was more relevant. And of course, we did not take another thing to consideration, which is the cash flow imbued in my own sales channel, the person, of course, making a research at that specific price and is not going to find a specific item not only on my platform. So if you're used to making news of 1 platform, so let's say, if you guys are not buying a reference greater, you guys should actually have a minimum go on a research and where to buy your specific product. If you're only buying making a purchase in 1 specific place, of course, it makes a lot of difference in my own pocket with the topic, we have as an important brand. We managed to have a better pricing in a way that the customer is always going to have an advantage when it comes to the payment lines when it comes to ROIC and our comp. And of course, it shows a lot of advantage to him, put ROIC's point -- a few standing point of view. So yes, we have a lot of efficiency on actually being able to relay this efficiency to the customer and a scalable and a proper scalability. So yes, we see all of it in the proper monitoring to avoid cannibalization. So we need to walk along with a customer and still keep increasing in the [indiscernible] our channel. So we do not create a cannibalization in our channel. I believe that's going to be the main care in which we need to monitor in a very close way. I think the second answer, you remember well the subject, which is pain for us be a result of flow more than BRL 1 billion a year as a labor expenses. Last year, we saw from the beginning that it's an area that we were -- we had some movement. We implemented a number of tools in a new management regarding the worker lawsuits but also looking at the root cause. So we went where were the actual pain that we're generating those lawsuits, and we have been working in sales point and management in the store systems a number of initiatives to improve things and becoming a more common company in this point of view. You see an important improvement in 2025. We have some legacy lawsuits that are more expensive ones, but they have been dropping in numbers year-on-year. So we have less impact in the whole, and this has been benefiting everything. And we will continue to see this gradual improvement there that we don't see that those great leads like when you saw before 2023. So we had a substantial improvement. It's in any subject of continuous improvement. It's not a constant pain as we had before. And there's room to continue to improve and be more efficient, especially when we go and look at the root cause, so we don't generate new issues ahead of ahead. So it's slowly in a controlled way. We are improving every day. And regarding the tax that you mentioned in the beginning, all tax gain for monetization offset the labor issue. Now we are equalizing the labor and tax is an added cash flow and will help both the operational and we have this added flow. We can monetize it in a more intense way in improving our cash flow over the next few years. So beyond the operational, these 2 subjects that you mentioned. Thank you for your question. Are both in the correct path. Nothing happens overnight, but we have the maturation time.

I'd like to invite Luiz Guanais to ask this question.

I have 2 questions, 2 topics that we need to explore. First is you mentioned over the last slide, the gross leverage and margin. And 1 of them you mentioned about store productivity and expansion. I would like you to go deeper into that. Where do you the opportunities for new stores, brick-and-mortar stores. Of course, this depends on the capital structure of the company. And within productivity, this morning, you would and the other directors explored a number of issues that will help to implement this as 1 of the main focus of growth. But I would like you to go back to this productivity driver. That's the first question. The second on exploring the partnership with Amazon and Marmercadolivri. Could you talk about credit? I know that in logistics, especially with Amazon, as you mentioned, there is another opportunity for monetization. There may be a may it needs to be developed, but maybe the in credit, the risk is smaller do you see added opportunities?

When we talk about the first question. I'm thinking about the second question and forget expansion and productivity. Of course, we have a lot of leverage. But when you look at productivity, we have a lot of idle time on the sales team. And with the e-commerce and new technologies Advent, we have a lot of opportunity to use the sales force. Another thing that changes a lot is that our salesperson is an acknowledged specialist in their area. But with the start of the use the consumer becomes a specialist in those technologies. So the greatest gain was when we put the AI agents to help the salespeople because it's almost if they knew how to write the prompts better because they know the product. So please compare this. If you have a long prompt, you don't have the best answer. So they don't know the best commercial condition. When we add the agent within our inventory context with our margins, we can create an argument even to move the client to the best margin products. So when I talk about productivity, it's not just selling more. Many times is selling better because depending on the refrigerated we sell, it's margin and the other is another 1 with more productivities. So we have incentives that are connected with the commission of the salesperson that taking consideration the ROIC and we can connect all these points, giving them the basis so that they can turn the sale with a product that is more profitable. There is a gain in this sense, and we have basic operational gains like store space. I will let Fred said a little bit, but there's a lot again within the brick-and-mortar stores. And in expansion, of course, we have 200,000 that we see potential but prioritizing not only through return on investment, but the speed of capture, the market that exists, where it's faster to bring return to the company. we should focus in the right moment in the country side of [indiscernible] and Sao Paulo, where we have the logistic mesh and branding that is powerful. It's a market that is focused on credit and it's very good. Fred, do you want to talk some?

With the productivity, we have the sales square meter sales by salesperson. And we have the opportunity to reduce the square meter but not only that to optimize the space through sub-location or returning part of the store to the landowners all their activities together with suppliers that would use the space, for example, in the last few months, we have a mattress store for a supplier so they can sell the whole range of products within our stores that generate traffic, both for us and them. So we have a huge scale of products, as Renato mentioned. When the salesperson has no physical clients, but they are connected with the client virtually through what's a of the leads that they receive, we increased the port productivity, and also to an average sale ticket sales over the last 2 years is almost 15% only by digitalizing the consumer and the explanation -- sorry, as I explained, the expansion, we began to add data to make sure that we have an expansion that is focused on our core. So we have the brick-and-mortar store that we want to replicate, but we have all the indicators to make sure that this new brick-and-mortar store is profitable. And also the purification of the credit -- consumer credit in the sale. So the indication that we have macroeconomically, we know exactly where the consuming public is and then we have a partnership with other organizations that will talk about localization and the crossing with AI, we know in each street and each town, it will be easier to implement our model of store of our brick-and-mortar stores. As I mentioned in the presentation, we have 52,000 that present future opportunity for expansion. When we talk about marketplace credit, as Vital mentioned, we truly believe that our credit is scalable as a product within our model for other sectors, even if it's the same public that I know well. Of course, we need to consider the loyalty to the brand. So we need to pilot and see what the nonworking loans are to be considered. When we look at the marketplace in Casas Bahia, we are sure that it's very similar and it's worth making our own. But some market in place to have their own security solution. And then there is a resistance because they want to do -- use their, but we try and if we have a difficulty. Anyway, it will open doors and there is room for us to do even in a marketplace where they have their own credit lines. Some of them don't even have a credit line. Chinese American, they don't have it because it's not their reality. And here, we have a lot of participation Discussions are ongoing, and we think that during this year, we see new initiatives that will increase addressable market for our credit solutions, bringing more profitability to the company. .

Thank you, Luis. Pedro, do you have a question?

Thank you for this space. Congratulations on the events. Pedro [indiscernible]. And I'd like to mention 2 things. First, in the consumer credit, as you mentioned, in Brazil, it's very difficult to predict what's going to happen. But I would like to understand what can you do to increase the penetration of clients in the BRL 2.2 million to the BRL 60 million that you see as potential in a more restricted credit scenario. With a lighter balance, can you be more aggressive? If there is a product adjustment, what you can do to accelerate that? And still in the subject of the colleagues mentioned with the marketplaces. You have 3, 4 years with the partnership with Meili and now Amazon. It would be nice to understand. First, what were the lessons learned with the Mali partnership that you could bring to the Amazon discussion? And what were the main subjects when we think about economics. What were the main conflict point during negotiation.

I think regarding credit, Vital probably can answer better. But you in retail, everything is granular. When we look at our models, we have a lot of working models. But as things get more worse, let's talk about 25%. So the macro scenario deteriorated. And for example, in North Sea, we have a structure on payment that is larger and we close sometimes and open all the time. So we can keep my KPIs below a certain threshold, which is the very conservative threshold we have. and we are not willing to flexibilize these limits. But there's a number of variables that make me closes. And we were grouping variables and closing more taps as a matter for than needed. So if we have 4 tops and within the profile of the Northeast, we closed all of them. But there's a small opening that we can open. Each time that I use this decision, I reduce reduction or the demand because sometimes we don't completely shut the door. We just need to control better and increasing installments or so on and so forth. And this alters the behavior. So we adjust the variables and work in a more granular way. I can be more assertive in the control of my risk and in consequence, have a more larger credit line with the same hunger of risk that I have today. We want to evolve and we have a better analysis capacity than we had before. If that's it, we of course, have a macro scenario that is exposed, but we had a non payment history. And even in the more adverse scenario, we've shown how much we've grown and keeping this discipline and negotiation of nonpaid loans, we are not opening to new risk. One of the leverage that we have looked into is how the sales channel for credit through what up can reach clients that we don't reach today. We have a database with 10 million clients with 50 of approved credit and are difficult to ease, if I get to these clients, I tell them that they have the credit in an easier journey. Many times, they don't even need to leave their home because they move to somewhere where they don't have a store or our high-service journey like online. This will unlock new sales with the same public that we have the same risk, another leverage. We begin for the first time, the model generation where begins to generate things that we don't have the human capacity to do because I can do combinations that are faster than ours. This we include the KS on about 10% model. We have a capture and reduce nonpayment or risk the same nonpayment since we have a parameter that we are winning, we will expand the credit with the same risk. Another line we customize our operations a lot. We customize through segments and others, but we haven't customized by micro region, which is the next arm. We will reach to the customization. For example, in the Northeast, we closed but Validos San Francisco Northeast is different in another state. So now we go to another arm and begin to open credit lines in an area that we close as a macro, but we can open small sectors. Our mind is always risk exchange. We need to reduce 1 line and open another opportunity. So we will continue to operate. And for us to project credit lines, we need to look at our story of growth and see how we can look at the macro scenario, we reduce our spread as we have been doing, and Seli we can look at the leverage that we haven't discussed, which is a tax reduction -- rate reduction. And with a new risk is a new client that is good, but we haven't been able to capture. And talking about lessons learned. I'll ask Gustavo to mention. We have a lot of lessons learned with the negotiations with many and having lived the process we can negotiate with more clear clarity our potential with Amazon. And of course, they -- we created a strong position in the market that gave us relevant. But the important lesson learned both for marketplace or e-commerce but commercial with the suppliers. And here, we have more granularity and more information to improve our negotiation with suppliers and have a dynamic that is healthier in a competition setting in e-commerce. We had the relevance of the platforms that impacted our final price within our internal channels so that we can be competitive within our advertising in the platforms and media and so on. So we optimize things very well, both in media and commercial aspects with suppliers. I think that's exactly it. I would like to add a point that mentions how much of scaling is important. When we talk about the platforms, we have a high volume, sales volume that is huge, and our commercial workforce works in a moment of the purchase capture in the market as a whole. Of course, we have a daily life, but we can see in a number of moments that we can capture to the purchase, and we have the results and sales for the group because nowadays, whoever does this pass is the smaller sellers and smaller partners. With my scaling, my strength and robustness, we can bring this market to us. And I think this dynamic was very clear with the growth that is very important as well as optimizing media, roles, payment methods and so on. We clearly can see that we can capture this market through our scaling and power of negotiation with our suppliers.

Thank you, Pedro. Do you have a question, Eric?

Eric, from Santander. Congratulations for your presentation. Two things that I have as well. First, looking at the logistic efficacy that you mentioned as a parent profitability pillar. I'd like to understand how you look at it at the tax reform. When you look at the footprint that you have, maybe you are better well positioning with the competition or even against the marketplace and pure e-commerce. When you think about the store footprint, and trying to capture better how much better is dispositioning. And when we look at the supplier issue and the focus on the return of our investments. You talked about the Chinese investment and the market participation. And there were partners in important moments where we're having difficulties with other suppliers. I'd like to understand what's the potential from now on, now that you have a capital structure that is more equalized. And what's the gain over to traditional suppliers those that maybe have a deadline that wasn't so good. And what's the stable line from now on and the ROIC for now on?

Clearly beginning by the second question. We see, as mentioned, we want to go back to that time were the issues with [indiscernible]. When we look at the lines and some increments that we negotiated for March and some for April, we should have at least 15 days for suppliers in discount added to the largest mix of suppliers, the Chinese, which will continue to increase, an increase of the deadline because this is expected, and we expect more limit with them. Of course, everything we influence how we looked at ROI. If they want to sell, they have to give us a better ROI. But if I have a leftover credit for each I can start to have a negotiation that we hope optimizing our profitability. When we look at logistic efficacy, we have an important factor is today, we have idle capacity in logistics. That's why we've been expanding to third-party service. But the tax reform optimize our tax network. So we have -- maybe we have so many distribution centers where we can increase, decrease, we have to look at it because it was a believer in 1 day a sales need, if it's 2 days is another sane. That's why we are increasing the quantity of stores that work with as many hubs for large products because large projects made no sense because we did everything through distribution centers with more capability with distribution centers and sales and refurbishment. If we turn the store. As I mean, you have a self-sufficient mini-hub for everything, we can optimize the distribution center. If we can advance with the logistics services for the large marketplaces. Of course, this consumes logistic infrastructure. So the refurb mission will be a catalyzer for new CapEx. Instead of optimizing the logistic infrastructure a lot we will be able to use this infrastructure to absorb services for third parties. But yes, there will be a transformation. It's inevitable we will have some distribution centers that only makes sense because of the tax complexity that we have in Brazil. So there will be a transformation and some costs that we will be able to reduce some shutdowns on CDs and so on. And the reform is gradual. It's not a binary thing then we have to finish by '29. But looking ahead, we have gradual decisions to have to see how much we move forward in the third-party services and how much we have available to block to brand and so on. And the important thing is our logistical hub it has advanced and will allow us to adapt and evolve with -- according to the tax reform because it's something that we already have, and we are more and more closer to the end client and will be cheaper and cheaper because the cost of the mini hub is better than all the others. It's counter the demand, quantity and the representativity of the clients that like to buy getting the fridge in the store, or television in the store is surprising. The cars that can -- that fit a fridge are surprised. I certify that if we quiz you, you will be completely round. You can use it in small cars. You can put big TVs in smaller cars. People can carry them in bikes, bicycles, they're very created Creative.

Next question. Anyone else? Wellington, please?

I'm Wellington from Bank of America. And I think when you were mentioning credit, you mentioned a number of products beyond the buy now pay later and the customer credit line. So the payroll loans and retirement loans. I would like to know, looking ahead, how can we understand the expansion of these opportunities will they evolve according to your customer credit programs? Or will they evolve in a more faster way. I'd like to understand better these credit opportunities and how do we see the evolution over time?

If we think about each product having their own specificity. Each product meets a specific need. So for example, the personal loan and look at why they're going to use the money they save first, the big item is to invest in their own business. 40% of our clients are self-made entrepreneurs. So they need working capital. But many times, when they get this, they began to pay on average of the other deadline that they use, they purchase, they pay debt and they go back. So each product has a different maturation. What we cannot forget is who we're talking about, BRL 116 million, and we know those clients well. And the payroll loan helps our clients that is different from the personal loan because those are employed people. They are not purchasing because they have less appetite for a high interest rate of the personal loan. Of course, we have the lower interest rate for the payroll loan because there is less risk because they have the payroll loan. It's connected to the payroll. So we have a specific evolution and with the market, different markets. So we expect a growth due to the low penetration in the segment, 0.1% for payroll. And if we get is BRL 1 billion of revenue. So they're very promising products with their own journey and path separately from the consumer credit because they have different intention and we have to look at the global risk of the client, a consumer, not forgetting the groups with their own processes, which they are promising that we think about similar presentation in our base and we have opportunity to create relevant business as well as having the partners connect and that allocate capital for those ideas because they believe how much we know our clients and we -- the return on investment for them and market parameters is different in giving our track record we've been compressing though tax rates and investment and they have appetite for us to operate. So we have the third party capital and other investments. And we -- it's all about moving ahead and getting new lines. And just to finalize, Vital mentioned at the end of the capital allocation when you look at the strategic point of view, it's a lot stronger in the consumer credit, because it contributes with a better margin. But we use third-party capital. We have -- we are very attractive with our products with a robust model. We have a track rector. We run a pilot, and we are able to attract investments, and we can increase the return on investment for the company without allocating more funds in this area. And just to complement our idea, we have a different relationship with clients than the rest of the market. So for example, while the operator was operating BRL 300 ticket meter, we operated with 1,500 for the retirement fund. Why? Because we could get closer to this client than the rest of the market. So those who were in the market a long time, they had BRL 300, because of our brand and a huge ecosystem is closer to the client who are not in the traditional credit market. It's where we get the opportunity, and that's why we have 64 million clients where we can explore financial resources because they trust in our brand and we have a reference of a physical space where they can go ask for help and talk to the salesperson.

Gabriela from Goldman Sachs. I would like to explore a bit on the capital structure at your working capital that you have. You guys talked a lot about it. And a very important part is in the presentation is the asset monetization and you guys showed additional initiatives in the presentation we would like to explore a bit further if you guys could actually put shed some light on what are the concept of the investment intend to monetize a tax and these lines. And of course, what are the potentials of these administrative lines?

Yes, we have -- we had many leverages available for the company. Some of them are available to us since 2016. When some [indiscernible] for instance, we have around 7 real estate proprietary stores. And of course, we had a lot of proposals. So when it comes to the yields that made no sense to have a 20-year contract when it comes to that building. Okay, I'm going to give you some ones now, but of course, I'm going to have body and of it. I'm going to have lay it back in a more decent way. So we need to have more fair negotiations so we can actually evolve in a conversation that will actually make sense to the company. So we're not here to make monetization at any cost. We need to be rational inside the concept a leveraged company with a lot of efficiency, operational efficiency in a very important level with a promising future. So we had work with stakeholders that see this company in that sense so we can have a better price. And so we get the real estate. And when we talk about credit or fiscal monetization. So of course, many of them are pretty negotiable, and we can bring them this discount rates. Of course, if they're reasonable. Otherwise, we can, we actually weighted out and of course, we have a few of our assets and more strategic assets in the company in which we can actually monetize on. We had the unlocking up of lawsuits. Of course, there's an entire process behind it all that we do not do it overnight. We have insurance companies that are actually bringing on. We need to get in touch with all the judges. Of course, there's interested hope Brokers involved to make the unlocking of those resources beyond FIC and it's all they are actually on the line to bring new opportunities. So we have a lot of initiatives. Of course, each 1 of them are actually bringing bill hundreds of millions of pairs. And of course, by the end of the year, we're going to have somewhere around 1 billion to bring to the company.

Any other questions?

I would like to congratulate you guys for this entire transformation of the team involved in it. First of all, I would like to make a question over retail media because I think it's a leverage that demands to a working capital when it comes to investment and has a lot of impact. So in context, free upcoming event, which is a world cup in the second semester. A very safe category for charging for everything that is about to be delivered.

I think that the competitive edge that we have is we have the physical stores as the greatest asset of media monetization, different from other competitors that are coming in a very strong e-commerce line. We have the physical stores, and we have a very strong leadership in these categories. And we have the other suppliers that are actually feeding this demand. So we have the boost for the intel media monetization, I think it's something that we've been preparing for quite some time now. And we also have the other suppliers that also want to make use of our resources be able to monetize and offer their publicity in our stores. When I make the right qualification of at all, having all the portfolio available I am the biggest player with the highest screen sales in the market. So yes, we make this in serration to all of our partners to have that going on. So we think that it's a very good strategy of our group and obviously, inside our e-commerce platform that keeps advancing with our sellers and our suppliers as well. But we have this competitive edge that no 1 has taken part in a way that we do in a country. We're talking about 50,000 screens available. We're not going to have a real guidance on how we're going to act on this line. But if you really want to accelerate in more diversified player. Of course, we had a more feasible way. We don't think that this very healthy method to bring our customer to another site or to another location. So if you look at the pricing that we have we had even more aggressive things just like be companies that would actually be able to monetize those things in a very strong way. We would like to prioritize our internal processes, but always counting on the ROIC and margin that we have available. We cannot allow a supply to come to us and say, he's going to pay a very strong retail mid and being giving up on the other things. So yes, we're going to charge it for the specific value. But to be there, you need to be inside of the group. And of course, you need to be inside the margin inside of the payment deadline, so that it makes sense. Otherwise, it really doesn't make sense for us. We're talking about an additional profitability for the company, but it's not well monitored, of course, it's going to become a mass. So we really need to look forward working with the partners who are working with a better deadline, working in them progressively. But I think it's pretty important and if we really think in the future, if you talk about the net profit is not going to actually represent anything to us. We're really not even actually close -- reaching numbers close to 1%. Of course, it all depends on the platform. We're talking about very distinct businesses and more fragmented lines, which is actually not our reality. We need to actually put a number of around 4% to become something relevant. We're going to have a real reach growth, which is pretty strong in that sense.

You're talking about something in 1, 2 years' time? Is that it?

Yes. yes, that would be the line, that would be the sense.

Well, my second question is pretty specific to [indiscernible]. With the second conversion, MAPA Capital has 85%, 86% the stakeholding when it comes to the entire stock market?

So yes, we're going to have enough profit to make this kind of conversion available. And now we can the first movement when it comes to conversion line, and it's going to happen right coming April.

So can you guys explore, can you guys elaborate a bit more of what's going to happen in the market to make a better investment in this kind of transformation that's well put?

Just to give you all the additional information of the first -- the Mapa Capital conversion, they retained 85% of our stock market value. So the assets that will actually be converted are going to be converted in the future debenture. So it's a great bit of find. So by the end of the first operation, the first rate basis, Mapa Capital will still have 60% plus of the stock market of the company. So yes, we have other partners in a plane here. So we had somewhere around 66% to 77%. So yes, they remain with the governance from now on. So when it comes to the profit that we -- the net profit that we're going to have in the future, historically speaking, a company always had value compared to always higher compared to the RE. So compared to the next period, we're going to have the take back for a company that's actually driven on a very strong philosophy when it comes to profitability with our physical assets. And I think we're going to have a very strong rate and just like in above, we're going to have a very good curve in this. So it will also strengthen our aspects in the company. They would actually come up to April next year. So throughout this entire time, we're going to have somewhere around $1 billion that will actually be added to market cap in the company throughout the year.

Any other questions? And do I think you're going to have the final considerations in here.

First of all, I would like to thank everybody's present. So here's a massage a final message. Maybe if you would guys to put it on a final presentation slide. So we're talking about an entire different company, not able to be compared to the company that we have 2 years back with a very good numbers with all the leverages when it comes to the financial point of view, with a lot of opportunities to be captured which is just a bearing feet of the entire transformation with all the bureaucracy with all the expenses that we had in the past couple of years, looking at the bigger picture by the end of the year, it's our job now. It's a less challenging goal that we have compared to what we've done so far. But of course, there's a lot of room for improvement. Anything I'm just going to leave 4 main messages in here. We have the structural risk that's been removed we removed that obstacle out of the way, say, okay, how are we going to -- how are we going to do that? How are we going to actually take this all down. Now we have enough capability to actually get those things out of the way. And the second point is the execution. I think that now we have 9 consistent time masters of delivery, but consistent delivery, which is -- which comes in a very strong way. And the third 1 you can actually see the kind of discussion that we're actually having now for all the results for the platform monetization. So we need to get the current ecosystem and increase credit participation in services participations, retail media participation, monetizes an entire platform that we have available. And the fourth pillar is the journey of value generation is to put everything together with the with a profit and a lot of discipline. So we can have all the allocated capital in the right leverage so we can have a broad spread and a very good level. So yes, we are pretty convicted of our journey so far, and I think undoubtedly, we're not saying that the retail market is something favorable in a very good way. But yes, the company is really prepared to face any macroeconomic scenario. So to get out of this specific initial stage, we had a start back in a meeting. So the surgery are have been performed. So all I got to do is just take all the -- getting back to lesson. So we're talking about an entire distinct journey in a platform and a value generation. So thank you for all of your support. We're always going to be available, especially our RI department. If you guys need us any time we're going to be available. So thank you so much. Thank you so much. [This call length has exceeded streaming capabilities. Please refer to the preliminary transcript that will be posted shortly.] [Statements in English on this transcript were spoken by an interpreter present on the live call.]