Helbor Empreendimentos S.A. ($HBOR3)

Good morning, ladies and gentlemen. Welcome to Helbor's conference for discussing the earnings concerning the First Q 2026. This video conference is being recorded, and you can have watched the replay in the companies. helbor.com.br. The presentation will also be available for download. [Operator Instructions]. Before moving on, I would like to stress that the prospective declarations have the assumptions of Helbor as well as the current information. These declarations may be under uncertainties because they refer to future events. So depending on the circumstances that may take place or not, investors, analysts, should take into account that events related to the macroeconomic environment and other factors can affect the results materially from the ones expressed in the prospective declaration. Here, we have Mr. Roberval Toffoli, CFO; and Marcelo Bonanata, Commercial Director of the company. Now I would like to give the floor to Mr. Roberval, who will start presentation. Mr. Roberval start your presentation, please.

Good morning, everyone. And I would like to thank you all for your -- for joining the first quarter 2026 earnings conference call. It's a pleasure to be with you at this time, joining us. We have our Commercial Director, Marcelo Bonanata, who will lead part of the presentation and will be available for Q&A session at the end of the call. And our President could not be here because he's on a business travel abroad. Now, I would like to mention some highlights of this quarter. As we observed in the fourth Q of last year, the beginning of 2026 was marked by the continued operational and financial evolution of Helbor, reflecting the disciplined execution of our strategy prudent capital allocation and the ongoing strengthening of our project portfolio. During the quarter, we recorded total gross sales of BRL 421 million. So Helbor share was 54%. As regards the launches, we began the year with two new projects, Nova Vivere in Sao Paulo, and Parque Clube Ipoema in Mogi das Cruzes. Together, these two projects total net PSV of BRL 470 million. Another relevant highlight of the quarter, was the execution of the Memorandum of understanding among Cyrela, Helbor and HESA 159 in [ Prinensyento Mobilares ] a company in which we hold an equity interest. The agreement sets for preliminary understandings or a potential partnership in the development of a residential project under the Minha Casa Minha Vida program, on this site of the former Semp Toshiba facility. This represents an important expansion opportunity in a segment with significant structural demand and which may add value to our future portfolio. I will now turn the floor to Marcelo so that may continue with the presentation of the quarter's results. Thank you.

Thank you, Roberval. Thank you, everyone. Beginning our presentation. Talking about land bank, our total potential in bank is BRL 11.9 million with a 72% participation of Helbor. Helbor share, BRL 8.6 billion. As Roberval said, a very important event that talks about land bank was MOU signed with Cyrela or my life and my life with BRL 1.5 million potential in sales of 19,195 CEPACs in this operation. So this is an extremely relevant operation where we already had two important with [indiscernible]. Now this major program. And we see that the economic segment is gaining potential. And we should leave with those who know how to do. So we think this is a very important event for our land bank and consequently, the other products that will come along. Highlight, the two launches we had in the first quarter total 407 million with 33 Helbor share. The first of them is Nova Vivere - Caminhos da Lapa which is the land lot we've been developing for 10 years in partnerships with [ Avega ]. And there is a lot of things. And this is one of the largest assets we have in the company, this FGD of BRL 387 million, with 18.3 Helbor share. And another launch was in Mogi das Cruzes, the first phase of Parque Clube Ipoema. Our city where we can develop several projects that are icons in the region. And this is another project. This was a plant that we have changed into a neighborhood. It became Ipoema. This is the last land lot of this phase of this major land plot where in the first phase, we have BRL 83 million of VGV and we've sold almost 40%. I would like to highlight the two projects were launched late March this year. So we are taking the sales at the end of the March. In the next slide, talked about the contracted sales. We closed the first quarter with BRL 420 million total VGV. We had a relative drop in the first quarter of last year. Last year, this VGV of BRL 680 million include the launch that Cury made in the East neighborhood of BRL 220 million of FG. And so just to make a comparison between the 2 quarters. So it was a decline in relation to last year. And in relation to the fourth quarter of last year, which is normal. We see the sales by segment. And the majority of the real estate under construction and also the launches. Concerning the VSO, there was a drop. We closed the total vessel 12.4%, and there was a drop in relation to last year as well as the last quarter, but in line with the market is doing. So I think it's above what we were observing and what the market is indicated an Helbor share of 10.9%. Now moving to the next slide. We are going to talk about the total inventory, which is about BRL 3 billion with a concentration in the Southeastern region split by category. We have highest share is average high, high average ultra-high. And mainly, I would like to highlight in the next slide is concerning our inventory of completed units, finished units. First, I would like to talk about the legacy inventories determinations concentration, especially in office space, and hotel units that today we are practically we are at the end of it in relation to the legacy units. But anyway, I would like to talk about the inventory of finished units. It's about 15% of our inventory, which is a very healthy inventory as compared to the market. So we are very alert to the finished units inventory. When we talk about -- there is a concentration in two important projects, Figueira Leopoldo, 12 units that amount to BRL 230 million. And one of the highest units. So we have a low inventory of finished units, and we want to keep this inventory to have a less -- a lower carry on cost. We have been working hard to leave it lower and lower. So in relation to deliveries, we did not have deliveries in the beginning of this year. And so Therefore, we had a decline concerning the own land in the quarter. We had a drop in relation of last year of 42%. And in relation to the fourth quarter, 35%, but we also worked very hard to always decrease the time for the own land. So overall team works hard in this area, and the lack of deliveries in the quarter was forecast, but we've been working hard to [indiscernible] as fast possible. And now giving next way, concerning the 18 projects we have under construction in 2026. We still have the delivery of 3 projects that will take place in the second half of this year, then we have for 2027 for 2028 for 2029 and 2030 with one project so far, but we still have some launches in this year. So this is my share and then I'll come back and then I'll give you now to Roberval.

Thank you, Marcelo. Now turning on to Slide #14 that presents the company's net revenue and gross profit and margin. The first quarter of 2026, the net operating revenue totaled BRL 347 million. Representing a growth of 16% compared to the first quarter '25 and 11% on fourth quarter '25. Now this performance mainly reflects changes in the sales mix between the period. During the quarter, 20% of sales corresponded to launch units while 55% came from units under construction from completed units. Compared to the first quarter of last year, we observed a greater share of sales units under construction, which directly impacts the company's revenue recognition dynamics. It's worth recalling that due to the POC methodology adopted by Helbor revenue is recognized according to the physical progress of construction works accordingly. In the profile of products sold and in the stage of development ultimately influence the pace of accounting revenue recognition throughout the quarters. Now the gross profit reached BRL 100 million during the quarter, representing a 6% growth year-on-year and compared to the previous quarter. Gross margin closed the period at 28.8%. now moving on to Slide #15. I we highlight the evolution of the revenue yet to be recognized an important indicator for the visibility of the company's future results. At the end of the first quarter of 2026, the revenue yet to be recognized from sales totaled BRL 737 million, representing growth of 54.9% compared to the same period of the previous year. This increase mainly reflects the strong commercial performance of launches carried out in recent quarters. The gross margin to be recognized close the quarter, 29.3% a level that continues to reflect the quality of the company's future revenues and the maintenance of healthy profitability levels for the projects. Now on Slide 16, we present the evolution of general administrative and selling expenses, reflecting Albert's ongoing focus on operational efficiency and disciplined cost management. In the first quarter of 2026, general and administrative expenses, excluding depreciation and amortization, totaled BRL 25 million, representing a reduction of 1% in compared to the first Q '25 and 10% versus for fourth Q '25. This performance mainly reflects mainly the reduction in personnel expenses in line with a leaner organizational structure in 2026, including at the executive management level, generating positive impacts on salaries, benefits and profit-sharing expenses. In addition, we have the right negotiation of the corporate sales plan that brought a reduction of about 10% in the individual cost per beneficiary. Our selling expenses totaled BRL 20 million during the quarter, representing a 20% reduction compared to the 1Q '25 and '18 versus the fourth Q '25 this reduction followed the lower volume of sales commissions in line with the commercial dynamics of the period as well as lower advertising and marketing expenses reflecting a smaller number of launches when compared to previous periods. Overall, we continue to advance in capturing operational efficiencies while preserving the company's commercial capability and maintaining an appropriate structure to support the sustainable growth of our operations. Now turning to Slide 17, we present the company's net income for the quarter. As a result of the operational and financial factors previously discussed, as well as the financial expenses recorded during the quarter. Helbor closed the first Q '26 with consolidated net income of BRL 24.2 million. Parent company net income totaled BRL 2 million during the period. Now on Slide 18, we present the evolution of the company's indebtedness and liquidity position at the end of the quarter. We closed the first Q '26 with consolidated gross debt totaling BRL 1.9 billion. representing an increase of 5% or 4.9% compared to the year-end 2025. The availability closed this quarter BRL 288 million, resulting in a net debt of BRL 1.7 billion, equivalent to 59% of the consolidated shareholders' equity. Now turning to Slide 19. We'll comment on company's cash flow movements during the quarter. In the first Q '26, we recorded a cash consumption of BRL 54 trillion on a consolidated basis. This performance was mainly impacted by the payment of financial expenses disbursements related to land acquisitions for the Patteo Klabin and Semp Toshiba projects as well as investments in construction work for projects that have not yet reached the milestones required for the release of construction financing, such as they have and in Clube Patteo in Sao Bernardo projects. On the other hand, the nonconsolidated SPs generated 16.5 million in cash during the period, mainly driven by unit transfers at the [indiscernible] development. Accordingly, considering both consolidated and nonconsolidated operations. The quarter ended with cash consumption of BRL 37.5 million. To conclude our presentation, we would like to reinforce a few points. Now we continue to maintain an active commercial management, adopting specific strategies for each type of product. We also continue in the efficient management of our land bank prioritizing opportunities with greater return potential and evaluating the monetization of land plants that are not part of the company's long-term strategy. On the operational front, we continue to demonstrate strong execution capabilities with a lever of 5 developments that together, total PSV of BRL 1.2 billion. In addition, our strategy of selective launches with projects located in strategic regions of Greater Sao Paulo and Mogi das Cruzes, aligned with the most attractive opportunities in the real estate market. Finally, we remain committed to disciplined cost management, leverage control and seeking a balance between growth, cash generation in long-term financial sustainability. With that, we conclude our presentation, and we'll now open the floor for the Q&A session.

[Operator Instructions]. Our first question comes from Herman, BBI. Thank you for the space. The sales event Helbor has generated strong. The condition sales in these events are the same as in the normal conditions. Can we expect more events like this at the end of the year?

Here is Marcelo. First, I would like to thank our question and say that, yes, this year, we still expect to have the opportunity to have the overheads, which is the largest sale of inventory in Brazil since 2015. We take to the whole Brazil, this event, which is a total success consolidated by the sales team and our client. Your first question is that we do not give any further discount that we usually give in our sales stance and point of sale. What we do is that we develop all the opportunities, many of them due to the scarcity of offer of some products that are we are running out of. And we always have special conditions our major partner, Bradesco, with better conditions lower down payments in red projects. We gave 6 months of condo fees. So there is a special condition for the client, but we don't work with any discounts but we expect to continue to have 1 or 2 events this year.

[Operator Instructions]. Our next from Itau. I have two questions. First one, concerning expenses. We saw a decrease of this expense concerning the company's net revenue closer to 6% concerning the history between 7.5% and 8%. Was there any runoff should we expect the same level from now onwards.?

Juliana, here is Marcelo speaking. Juliana, I think that what we can plan is that we had a lower number of sales in the quarter. And then we end up having less expenses in relation to sales. And this is in line with the size we are going to have in the next quarters. Don't you think, Roberval?

Yes. I think that we are going to maintain the same levels as compared with the income. What happened in this quarter was a drop in the volume of sales that generate a reduction in commercial expense.

Another question by Juliana, I would like to understand more concerning the demand in the city of Sao Paulo concerning the high level of inventory. You see this in the behavior of the consumer, especially for ultra high. And is there anything that is impacting the demand?

Well, I think that Sao Paulo is like a country. We have a huge market. And undoubtedly, the offer has been increasing. And as I said, our offer of finished inventory is low, and we want to work on this to keep it low. And as Roberval said, we have to be very selective concerning the launches so that we can have the greatest speed and then have a cruise speed in the ultrahigh segment and doubtedly we had an increase offer. Just to give you an idea, 2 years ago, everything we launched in the city of Sao Paulo we had only 2% of launches with projects with over 150 square meters. We had a higher offer. We had a demand. I don't know if it was printed breast, demand or not. But everything is interrelated as the macroeconomics expecting a drop in interest rates. But in relation to the market, he analyzed carefully what things are happening. We are not focused on the segment. We have a flexibility both in relation to the location in the state of Sao Paulo and segment. We leave [ 2 - 25 ] square meters for apartments of 500 square meters. And this is affected concerning the concentration of products also we also have escape which is the city of Mogi das Cruzes from 25% or 30% of our sales will come from here. We are market leaders, and we can have our projects be realized at high speed with a good margin, and this is very helpful. Just supplementing Juliana, and what you talked about the commercial expenses, we had two effects in the quarter. We had a recognition a greater revenue recognition due to the mix of the projects. And we had a volume of commercial expenses lower, and that's why this percentage was lower. And I think that's why you had doubts in relation to that. But I think that we can consider the percentage. The previous percentage levels because this quarter specifically had this effect.

[Operator Instructions]. Our next question comes from Francisco [indiscernible]. Could you please talk about the highlights with the ultra high level?

Francisco, this is Roberval speaking, we had a higher level of terminations this quarter to the deliveries we had of the projects of late last year is natural from 10% to 15% of the project when you make the deliveries, you also have cases of terminations several elements, lack of sufficient income and I think that this is within a normal level and late to the volume of deliveries we had late last year. And just an additional information is that and Marcelo can supplement my answer. We have a sales team, Marcelo with the sales seem extremely focused in reselling the terminated units. I would say that almost 100% of the units canceled in the quarter, they are properly resale within the same quarter.

Exactly. Francisco, Roberval, was right. So the problem with the termination. If you launch the project 3 years ago, everything was different. The interest rate, and there is even a natural consequence. Some projects are well sold, mainly of these projects, we no longer have inventories. So when we start having this misalignment, our team starts working offerings. Sometimes we can do the termination and the new one after the other. So we've been doing that in this termination of contracts, and we practically have no more inventory of terminations.

The Q&A session is closed. Now I would like to give the floor to Mr. Roberval for the final remarks of the company.

I would like to thank you all for your participation. Thank you very much.

Helbor's video conference has ended. We thank you for your participation, and have a good afternoon.