Iguatemi S.A. (IGTI11.SA) Earnings Call Transcript & Summary

[Interpreted] Other properties like Sorocaba and the development of JK here in the city. It's an emblem of the city. So these were all projects that we had already been thinking about, markets that we have been studying and this is part of the Iguatemi DNA. And we know that this is always the financial discipline. And in the company, we always -- we were always very careful in the allocation of capital, the discipline, the acquisitions, the evaluations. So the market lived this. So we look at 15 years, 2007, 2008, 2009, the players were extremely aggressive making lots of acquisitions. And we were also very loyal, always very loyal to our strategy. So we were present in the best markets and using the additional value to be able to conquer a partner that wants Iguatemi as a partner. And it's not a partner that pays more necessarily, but it's the one that brings greatest value to a property or to a society. So these pillars with a lot of financial discipline, this is what brought us here and it's going to continue to take us to the next -- through the next decade. So you definitely look and emphasize tomorrow, right?

[Interpreted] So what were the main evolution since the restructuring of the organization in 2021?

[Interpreted] I think that definitely reorganization in 2021 was important. And I would look at the film that would talk about since the IPO. So Iguatemi was the first company in the market to make its first offering of shares, and this is a moment of institutionalization. So you have the regulators, you have the best in the market, the shareholders and the investors, the accompany, the information on a quarterly basis or an annual basis. So I think that our evolution in terms of governance has been happening since the implementation of the IPO, and we were also very careful at the time to take our people, the people who were with us and give them the opportunity to grow. Also strengthening the teams, bringing in other people that could add to the attributes we already had. We strengthened the committees. Today, we have statutory committees, and there's a lot of work. And the committees were not statutory, but they were very important in our governance, and strengthening the Board. We have a Board. And if we look back it was basically a subsidiary and less active. And over the years, we brought people who actually add value, expertise and attributes that we want to look for. So in some moments, there was concern. There's still a little concern. There's an opportunity for digitalization. So we brought people that add to the discussion of digitalization of relationship with the customers and other points of contact. And we also went through succession process, evolution of the governance. We have our Board. We've had it for several years. We have experienced people. There's a person who is a specialist in governance and training and people management. So I think these attributes that we added to the Board and to the committees and to the teams, this strengthened the execution of the company and also the capacity of delivering sound results with wonderful and excellent people working together in the same direction.

[Interpreted] So can you still give us some additional information about how the governance works in practice? So how are decisions made on a daily basis?

[Interpreted] Well, I think today, we have a structure, an administrative structure. Carlos?

Until 2021, he was in the position of the CEO. I was the administration -- part of the administration board. And since then, we already had a decision process that separated the execution and the routine and the day-to-day management from the strategic decisions and the direction followed by the company. So today, we have different committees for our statutory and some that are not. And they talk about robust issues and fixed or variable topics, and things that are discussed. These are all discussed. And one of our characteristics, characteristic of our management model is being there. So we are very close to the company. We're very close to management. We're aligned we're making the decisions together. We are studying the comfort and the decisions that are taken. And if we're not comfortable, we check them out and maybe we have to the call another country or wait a few months to do a Board meeting because you have people who are close making decisions. So I think in practice, these are examples that have worked very well. And this was a natural evolution of our management model. So Cris, who today is the CEO, she's been with us since 2008. So it's almost 16 years working together. So I think this naturally creates this confidence, the facility of working together with the governance model that is going to move over time.

[Interpreted] So Carlos, I wanted to talk about leadership, a recipe for leadership. Is there a recipe for you to become a leader? An absolute leader amongst the luxury brands?

[Interpreted] I think, in fact, it's knowledge. So you have to try and understand how the market works. I think if Iguatemi had this interest back then, and we adopted the segmentation strategy because this allowed us to notice the important nuances of what it was like to have this kind of strategy. And it was a natural path of evolution with the relationship of international brands. So we were pioneers again. And I think this is a word that talks about the history of Iguatemi at the industry of the IPO and these strategies, the segmentation strategy and internationalization as well. And we were able to understand very well how this market worked, and we went abroad and we looked for these brands, and we explained how the country worked and we have a very close relationship. We brought them over. And having this closed relationship, we understood the nuances of how the industry works, learning to internalize this knowledge in our structure, strengthening our structure. So I think it's the only company in Brazil that has a marketing relationship, working together with the customers and our international partners and the national ones, too. And there are those who have a relevance in our portfolio. So all of this provided confidence for these partners looking at Iguatemi as a strategic partner in Brazil. And today, we have a relationship with the best brands, the biggest brands. And I always say that -- it's interesting to see a brand that the [indiscernible] Tupí-Guaraní and Iguatemi is from Tupí-Guaraní. It's a language, and that's an international reference of luxury in the country. So this shows that, in fact, this brand has this concern of knowing how to understand and knowing how to receive these companies in Brazil being prepared for that and being successful. So we're very happy because most of the brands that entered, they only grew up in Brazil. We have 2, 3 or 4 stores, several of them around Brazil, and they show this confidence relationship.

[Interpreted] You always talk about -- and you always remember concepts like pioneering and the essence, work, purpose, the DNA of the group. What are the values of the family that built this culture over time?

[Interpreted] It's a nice question because I think that a few years ago, more than a decade ago, actually, when we designed our family structure, we also talked about these values because on a daily basis, it was very important for us to show this, right, and write this down. And we saw how much these family values are in the company over time. Things like excellence, that concern with content and form. We're very concerned about doing things in an impeccable manner for our customers from beginning to end. So I talked about the design, the quality and this relevant content -- different content. And we're always a step ahead even in marketing, and the events that we promote and the way that we relate. So this is noticed, and this is a value that my family always had. And I think that this is inside the business, and this is connected to the professionals. We see that today, people talk about this. They live this and things like entrepreneurship, this thing about being pioneers and launching ourselves. So not only in terms of malls, but for example, we had our first undertakings that use the malls and commercial and residential buildings. And also in [indiscernible] Santa Catalinas. So I think that we're always -- we created the retail unit in our business. And we're always trying to develop, and we see that this is inside the different verticals in the company, innovation, creativity, entrepreneuring, making things happen, and we're talking about work. So I think it's a family that has a work DNA, And this comes from my father, my grandparents, and we like what we do. We work, we're present. We travel. We're close to business and we like to follow up. We're available to people and we have to talk about the relationship that we have in the Board, with the executives and the executive committee. So being close, being interested and being very present and available for people so that things can happen in a better way. I could talk about several other things, but I would take up all of our time.

[Interpreted] Okay. So we're talking a lot about the history, action and purpose. So I think there is a huge expectation about tomorrow, right? So Pedro, what can we expect from the future?

[Interpreted] I think in the future, we come from a very successful path. And in terms of the future, we're going to continue working with a lot of discipline. In terms of execution with a lot of efficiency. And as Carlos said, one of our values, which is entrepreneurship is the will to continue to grow, but growing with discipline, as we've always done. So we believe that we have opportunities. The market that we work in has growth opportunities, and we would like to be in the best markets in the best properties. So we don't have any mission being the best shopping mall, having an x number of malls but things that make sense in our participation and keeping consistency in our portfolio. So unfortunately, I don't really have anything that is different for what we expect for tomorrow. So let's do more of the same. Let's carry this out in an efficient manner and let's grow with responsibility. So I think this is the way for us to continue to deliver what we've been doing.

[Interpreted] So talking about alternatives to continue growing. I'd like to know from both of you, what is the path to position yourselves beyond consumption? So what can we expect for this sector with Iguatemi in the next 5, 10 or 15 years? And Iguatemi in the first place there.

[Interpreted] So I'm going to repeat the words here. So growth is very close in our daily business. It's disciplined and qualified growth. And I think continuing to be creative, I think Iguatemi is extremely creative and able to do things. So I think continue doing that, looking at the world, looking at the opportunities, and we also talked about pioneering. I talked a lot about this word being open to new ideas. There's a luxury conference that we have and that supports national fashion. There are sponsors for special events that reinforce Brazilian culture, that reinforce business in Brazil. I think that we have a very important role. And I always say this because I remember that many years ago, I was in a conference in Turkey. And somebody asked me, "But how do you see the relationship of the malls with society?" There was always this discussion about there being spaces that are not integrated to the city. And my view was completely different. So I saw the experience in Brazil over time of how the Brazilian society learned through a private, public space. Public use space, improve understand several of the issues that you see over there. So behavior and how malls with the quality of these private spaces with public use, they help the cities to evolve in terms of landscaping because there is a natural interaction. So it's not immediate. It is transforming over decades. So I think the power of being able to participate. And this is a great stage for several topics that are happening in society over time and the aspect. We're talking about -- we have partnerships with several associations and you have different causes that participate in our business, and we have come into contact with them for the first time. So the role of our business and where people have, I say, sometimes you work in an industry, in a gas industry and nobody knows what you're doing. So you have the final product at home, right? But the mall is recognized by the consumers. So if you ask, everybody has an opinion about this business. So I think we have an important value that includes interaction and development and the daily living of the population. Pedro?

[Interpreted] Well, if so anything I'm going to repeat what Carlos has already said, I think, just keeping it short, the novelties that we bring. So we cannot stay put over time. And we saw other markets. We saw what happened with undertakings that get old and outdated. And that's why there is constant search for novelties, participating in people's lives and not only being an isolated -- a purchasing center, right? We're a part of people's lives. If it's for food, if it's for just going out with a family with the kids and several different uses. And I think the dynamics that our undertakings have, that the mall industry has advanced compared to the rest of the world here in Brazil because we are present and we're always trying to bring new things for our customers.

[Interpreted] Okay. So we are almost finishing our conversation here. I'd like to know if you have any final remarks, any messages for our friends and partners at the event?

[Interpreted] First of all, thank you for joining us, everybody who is watching us. It's a great pleasure to be with you, and to be able to talk a little bit about the history of Iguatemi, a little bit of our history together with that Iguatemi, the role of the whole Iguatemi team over time. And I'm sure that Iguatemi is always surprising and it's incredible how you grow. There's always something new. This happens in all of Iguatemis. And I think that when I look at it, when I look at the story, more than 30 years over here, what I see is that every decade, this market has a way of transforming itself and including new things and being able to transform itself not only into a building. It opens up and it puts things in. So I am sure that we're going to continue to see a very dynamic sector, and there's the opportunity of growth and transformation and technology. And this is going to make small spaces extremely interesting for people. And I'm very excited and it's a company that I missed because there are things that I'm not going to see. It's incredible how dynamic the sector is and the capacity it has for transforming and to deliver new things. I would like to thank everyone for joining us. And I think that this Investor Day is the opportunity of knowing a little bit more about the company. I think many people know about the numbers, the strategies, the main things we do. But I think the most important thing today is the opportunity to know our team. I think we have a spectacular team of people who are committed, people who like the business, people who deliver results, who think like the owner, that our hands-on. And I think this is the opportunity to know these people better, to know the areas, to understand the dynamics of the mall and what is behind the numbers and how all of this happens behind the scenes, right, behind the cameras. So I would like to thank you, and I'd like to wish you a great event.

[Interpreted] Pedro, Carlos, thank you very much for your explanation and for the information. Happy to see you and enjoy the event, everyone.

[Interpreted] He's a gentleman, right? Thank you. So guys, I think that it was an extremely interesting conversation. It gave us a great view. And I always feel that something was added when I see this kind of interview that float and what they said a lot was that you need to know the team, right? Is there a better thing than knowing this team with the big boss, with the President and who has been here for 16 years, as Pedro said. Cristina Betts, the President of Iguatemi, please. Let me help you here.

[Interpreted] Good morning, everyone. It's a pleasure to be here with you in person. Some virtually at home or even after the recording. I'm Cristina Betts. I'm the CEO of the company. And part of the restructuring, I was the CFO from 2008 until 2021. And as Pedro said, I've been here for almost 16 years. Well, let me start by saying that it's the first and last time that we did at the Investor Day was in 2008. So we had done an IPO in 2007. We got BRL 500 million. Then we did another BRL 200 million from a debenture, right after that. And then we ran off trying to use this money well, right? One of the first things was to buy what gave us most in Iguatemi São Paulo. And definitely, it was very important for us. And then we made several acquisitions, and we started to make several investments for greenfield shopping malls that started with Brasilia and several others. And then in the middle of all this, the subprime came in. So it was a riot. It was a miss on the market and the global market. But Iguatemi was still strong with all of its growth expectations at line, and we were working. And that's when we decided to do an Investor Day to show the market that we were really very sound in our purpose. We've just done an IPO and we were fine in terms of our growth strategy. So we did this Investor Day at the end of 2008 to show this growth plan, and it was the first time, and we were the first to do this in the market or the only ones to do it for a long time to provide guidance. So we had a short-term guidance for that. Following year, that was 2009, and we also have long-term guidance for commitment to growth. So then you already know the story, right? I think every year, we complied with our guidance, our long-term guidance, and we maintained after 2014, our practice in terms of providing guidance every year. So we always provided guidance plus the 2 years of the pandemic that we removed the guidance because really it was more complicated time, but we always maintain this sort of guidance. And then this year, we're going back to our practice of having an Investor Day. It's the first day since 2008, and our commitment is to do it every year, and we're already planning for 2025, we're going to have an Investor Day in the first quarter of 2025. But today, we're not really going to talk about numbers. We're going to talk about subjects that we don't usually talk about when we talk about the quarters and the conferences. So first of all, maybe the most important thing is to introduce the team. We have a wonderful team that is highly engaged. We are GDPW ever since we adopted this methodology in terms of climate research. And in the 16 years that I've been here, the highest grade we've had is the pride of being part of it. We can have the most admired shoppings, the most valuable ones in the market. But if we don't have a good team, nothing works, right? So I think that today, we really want to open up this channel with the executives of the company and we want to open up this dialogue with everyone. So you know a little bit about our team and also the commitment, opening up other opportunities in the future of talking to each of them. So we have a very strong team, a very experienced team and in love with what they do, and they've been here a long time as well. And first of all, we are -- work very well together. So we support each other and also in decisions. So these years of experience, they count at this moment when we have to make decisions. The second thing that I think is important that we have to talk about today is show how we work on a daily basis. So a very important point in our delivery is our execution. And for that, to be perfect, we need to have methodology, discipline, integration between the areas, a PDCA routine and always improving our insights and what we have to do on a daily basis. We always say this in the company, and I have to see that there are several executives that will repeat. I'm going to repeat a few things that Pedro and Carlos said, and I'm sure that the executives are going to repeat things that we've said because we are very integrated in our values. But one thing that we always talk about is having plans A, B, C and D, we have reserved plans for everything. We practice and we prepare for everything. So we do stimulations in the holding, in the mall, everything is what we have to do. And if there is some surprise someday, something that we never imagined, the next day, we already have a routine for that as well. The third thing that we're going to talk about today is our leveraging of value. And the first one has to do with improving profitability per meter squared in our existing malls. And I think that we did an important -- some important work during the pandemic in those 2 years. And today, we have indicators and Guido is going to talk a little bit more about that later, that are better -- not before the pandemic, but better than before the Recession. So we are already at levels pre-Recession, and we're going to talk about meter square. When we talk about meter square, it's not where profitability comes out. We separate how we work on this into 5 pillars. So the first thing we talk about is the design. So the design is not only how the mall is, the external-internal design of the mall. It's also taking care of what happens inside the mall. So last year, we did more than 400 redoing, so redesigning. So it could be redesigning of the bathroom or the flowers, the flower pots or our skylights. So keeping our assets new is very important. I've had several people coming to me, especially people from abroad when they come to Brazil, and they see Iguatemi São Paulo for the first time. And they say, "Wow, but this is the oldest shopping mall, and it looks new." And it looks now exactly because of the work that we do. And the second pillar is content. In 2023, we had 371 launches. That's 15% of our portfolio. And out of these 15%, more than half were either stores that did not exist there or they did not exist in the malls until then. It's very important, and we talked a little bit about this with the controllers. It's important to have this innovation dynamics. And Chip is going to talk about that and Charles [indiscernible] as well. we had launches happening in 2024 that already were part of our forecast. So a few weeks ago, we had the launch of [indiscernible] in Iguatemi Preto. It was very successful. People were lining up at 5 a.m. to get in. It was really crowded. And now in the middle of the year, we're going to have Outback and Iguatemi São Carlos, I have no doubt that it's going to be very successful. And we're also going to have in Iguatemi São Paulo, the first Loewe in Brazil. That's one of the most desired brands in the world today. And then it was Tiffany at the end of the year in and Iguatemi São Paulo as well. Services. That's the third pillar. Services are many things, but I'm going to give you an example and [indiscernible] Is going to talk a little bit about that. So there's our loyalty program. And inside this program, we have the promotion of collections. This already allowed an increase, 55% of our customers that were registered. And during the promotion, we have more than 20% of sales identified per unit. That's very important for us, for us to start creating a database to have better understanding with hardcore data. The fourth pillar, events and marketing. So we did more than 500 events last year in all of our shopping malls. So it's a simple theater day inside a book store until a Barbie Dreamhouse that we had over here. And during 2 months, you're going to see the images of the Barbie Dreamhouse, if you didn't come. In 2 months, there were 70,000 people who came to see it inside the mall. And the last pillar, and I think Charles is going to talk a lot about this is the operational silence. So everything that happens in the backstage, we don't understand that, but we only understand things when things don't work out, but everything works out well. But this thing about making it work in a visible manner, it makes us have well-being in the shopping mall. And a good example of the things that, that we're always improving is, for example, safety. So we did several investments in the safety equipment, the last analogical cameras. We exchanged them for digital ones, and we put all of our security guards with a body cam, also the audio, not only the image. And we're investing in this so that our service becomes better. And these pillars are extremely important for us to be able to do what [indiscernible] is going to talk about, which is to charge the rent that we deserve from our properties. Okay. The second leverage we're going to talk about in terms of value is organic growth. And I think that our last shopping center that we inaugurated was in 2018. It was the fashion outlet in Santa Catalina. And before that, we expanded in Porto Alegre in 2016. But honestly, with everything that we have seen in terms of sales and the demand for our stores that want bigger spaces or new spaces. Today, we have repressed demand in terms of space. So finally, we're able to go back to see organic growth in the company. So we have already announced a retrofit of marketplace. You probably saw that. And today, we're going to talk a little bit about our expansion in our Iguatemi Brasilia Mall. The third leverage that we're going to talk about today is to use our surroundings to bring a greater flow. So today, we're going to talk a lot about our project around Iguatemi Campinas, which is 1 million square meters area and it's going to bring 50,000 people every day to that -- to the surroundings. It's an incredible area with all the new urbanism concepts. I'm going to ask Claudio, to talk about this guy, who's also going to talk about this. And the fourth leverage is inorganic growth M&A. So we're going to talk it about that. Guido is going to talk about what we can and cannot do. And I think 2023, we ended the year, as you saw in a spectacular manner. We were able to get results from everything that we've been doing over time, and we opened an important space in our balance. We -- it was lower debt over EBITDA. And just in terms of organic growth and the search for efficiency, we should finish 2024 closer to 1.5x, which is quite low. And it gives us a lot of opportunity for anything that we want to do over the next 15 to 18 months. And finally, last but not least, we're going to talk a little bit about ESG. And Dilene, [indiscernible] are going to talk about this. We have great advances -- so we looked at our first sustainability report that was a lot of work. We have to collect all of the information that was spread out. And they have to put it on paper. And then at the end, this shows that we are going to the wrong -- taking the right path actually. And we're going to talk about commitments we've already assumed, our collaborators, our shopping system, our mall system, and Pedro is going to talk about the governance that we have in the company. Well n 2009, going back, we did the exercise of placing the mission, the vision and our values on to paper. So every year, we try and see if we are continuing on track. And the good news is that it has changed very little all of these years. So we have just a little word here and there. We try to make it smaller, to make it more user-friendly, but everything that we have in the essence of what we wrote in 2009, that's exactly the same on paper. And it's nice. As I said, you're going to notice the executives that we use the same words, and that comes from the same exercise. But to talk a little bit about some values that are my favorite, and you're definitely going to hear about this as well. My first -- my favorite is wow. So enchantment and excellence in values and also dreaming with the impossible and we get there innovating as always. And the third one that Pedro said, and I told you that we would repeat things. We definitely are hands on, and we wear the shirt as we say. And we'd like to surprise and enchant people, providing consumption and entertainment experiences that are memorable with a great purpose. Our strategy and our numbers are a result of this purpose. So I hope that today is a great day and every day, go to our shopping malls. I hope you were able to see our execution, our passion to make this work. And now before the first panel, I'm going to put a video of the images of our undertakings and our events. Thank you. [Presentation]

[Interpreted] So you see that? You're learning, right? Always. Thank you. So it was great to follow all of the data that Cristina provided us with, in terms of seeing the growth of the company and looking at what happened over the last few years, and she also talked about what we expect in the future. So there's been all of these growth lines at Iguatemi, and there was a view of the opportunities as well, opportunities that are still going to be seen in the panels today. So I'm going to start the first panel, and we're going to explore this subject. I'm going to call Charles Krell, which is the Vice President for Operations, and [indiscernible] the Commercial Vice President. So please come up on stage. Thank you. Thank you for coming, both of you, and we're going to start with you [indiscernible] because we heard a lot about the leverage, right? The leverage of Iguatemi. Iguatemi has for sustainable growth, right, not just to grow anyhow. So we know that the malls, the closing of the empty areas, that's a very important financial point, right? So Iguatemi has had excellent results in 2023. Could you give us the reason how you got to this?

[Interpreted] Well, first of all, it's a pleasure to be with you today. I'm very happy. I came back to what they mean about a year ago. I stayed for 10 years. I was the Operational Director and the Commercial Director as well over the last 3 years before I came back. I was working in a retail company in the expansion development and it's a great pleasure to be here. I think the great challenge that we had in 2023 is that we separated the work into 4 very relevant pillars for the commercial area. First of all, people. So we looked at our team. It looks a little obvious because people, the commercial team, the main resource is somebody negotiated with somebody else. And I think that the work that we had was to train people better and put the right people in their places and to establish a team that would have a high performance. And the second pillar that we established, I think it has to do with high performance. They were very clear KPIs. And it seems obvious, but it's not that obvious. The commercial team has a series of activities that can also be measured. Not only measuring the end of the negotiation but also the signing of contracts. I'm going to talk a little bit about that. Now the third point is governance. So how are we going to govern the work of our commercial team so that we would be able to achieve the results that we wanted in 2023? And I think the last one was how to mix this up and work with quality and speed. So we never -- we can never lose quality, and that's basically what our controller said, [ Pedro ] as well as Carlos. They talked about the importance of bringing into our business, everything that we have in our DNA in terms of quality and everything that we want to do in carrying things out well. So we worked on high-performance people. We changed a lot of people. We brought new people in to help us in this process. We established very clear trainings, precise and speedy information to provide the best opportunity for our partners and our store holders. In terms of KPIs, just to describe that a little better, how did we see it? Today, we are able to measure exactly how many times something comes in and out of the committee. We can look at individual productivity. How much does it take to get a negotiation through from beginning to end? We looked at the effectiveness of each of our professionals to know how many times this proposal is coming back to our committee. So today, we can have very objective measurements, clear measurements of speed. And in terms of governance, we strengthened our approval committee, so that they would be faster, more objective, less bureaucratic, where everybody would be able to participate in one go and approving that in one go. And that would be very clear with our legal structure, and this has come out as quickly as possible. We would be able to send this contract, accelerating this process and definitely reducing the vacant spaces, which is very important. So where does quality come into this process? It was never set aside in our management. And I can give you some examples. A great example that we have was Zara from [ Giannopoulos ] because it was a very important negotiation for that asset specifically, and it increased the flow of customers, 10 basis points. And then we also had some malls like Iguatemi Porto Alegre. There was a negotiation with Gucci and Dolce & Gabbana. They opened up in Iguatemi Porto Alegre. And this reinforces and this is a clear image of what we work with in this balance between speed and quality of what we deliver, the speed in terms of reducing vacant spaces, preserving our mix, which is a very important value for us.

[Interpreted ] So you talked about the values and everything that you've said, how does this reflect? Everybody wants to know, right? How does this reflect on the results of the company?

[Interpreted] I think Carlos said this, too. So format and the content that's very important for us. And we worked on the form of the content and this reflected on the results. So we finished 2022 with an occupation rate of 92.7%, and we improved that until the end of 2023, 2.4 basis points, ending 2023 with 95.1%. So that's absolutely important. It's the best performance we've since 2018, and this is the reflection of this work we've done. So planning, control, effectiveness, we had a record in terms of contract signing, was 445 contracts we signed. There was a very important change that we also reached and is 26% above the average of the last 5 years. So we believe in this. The form and the content, so the spring results in the end. And I think we were able to do this with all of these pillars that we established in 2023.

Great numbers, right? And we want to know what happens, what can we expect in 2024? How are you preparing for this year?

So as Julio says, who works -- has worked in Iguatemi for many years, and I admire him a lot. He always says something. Always forward, always look forward never backwards. In 2024, we're going to continue to accelerate the consolidation of all the work, the pillars that we established. There's also 2 new directors, 2 very experienced people in the market and they're going to act in their regionals and also in the key accounts that we established inside our partnerships. So these are people who already know about the retail market. They know a lot about real estate as well. And I think the most important thing when we consider -- what we're saying is the opportunity of improvement of our income per meter square. So we also reviewed our commercial tables and we provided a lot more criteria and effectiveness for each opportunity, for each store specifically, always looking at our top tiers, payment tiers, and this brought us great robustness. And this is going to allow us to negotiate better rent per unit, per asset for each customer.

And your explanations were very clear. Everybody understood. And it became very clear about quality. Quality and content, quality and design, quality in the operation and this conversation have showed almost neurotic concern with that. But anyway, Charles, can you explain how I can see the excellence of Iguatemi as a differential aspect the company has?

Well, it's the neurosis. My microphone is working. Sorry, the microphone isn't working. [Foreign Language] So the truth is that everything that we've been doing will result in the excellence in Iguatemi and that's part of the DNA of the company. So the difference is in the mixture of stores, the choice of plants, the landscaping in general, it's from what's complex to what's simple. And the culture of excellence is already embedded. It has been for many years with all the professionals. It's very important. And it's a property and it's an asset, right? And there's no -- if it is not done -- if people don't do things, it doesn't work. And in terms of operational management, many of the processes -- so this task in 16 undertakings distributed geographically around the country. It makes things more complex. The third point about complexity is that we work 24 hours a day, 365 days a year. And after the last customer leaves the customer, we have another 12 hours with construction, with safety, with deliveries. So it's 24 hours of a daily attention to each property and many of them are more relevant in terms of consumption compared to Brazilian cities. And to keep the operational quality with a high-level equipment, we work with 3 areas constantly: processes, technology and people involved in the organizational culture. The well-being of the customer is the primary point of our strategy. That's also according to the salespeople.

You're saying something really nice, but how does this work in practice?

So in this conversation, I'm going to give you some examples that this is the result of decades. Decades of expertise, that was accumulated and opportunities and the absorption of context and practices of the industry and the commerce and the service activities. So the elements of this is incorporated in the management of shopping malls. So if you have any questions, I can explain this better. It's incredible. We have the disciplines involved in management. So we have processes that need details, they painting well or skylight as Cris said. And it's very -- there's a difference between a customer having to go to a shopping mall or wanting to go to a shopping mall or wishing to go to a shopping mall. And we have to think we would like them to go to try and solve something important. And the attractiveness, the different elements, this definitely gives us the motivation. The customer wanting to choose going to what they need. Best experiences, architectural projects, a mix that is tailored according to every place we work in. It's not the same for everyone. It does make sense. Great stores, therefore, very nice events. It is not a ready-made recipe for 1 year or for 1 shopping mall. It's continuous work, eternal work and that it has been like this and it will continue to be like this.

So you gave a lot of color. You illuminate it, at least for me and hopefully for everyone how everything works. But I'd like to go back to [indiscernible]. So all of this reflected in a record sales. So how is this translated into results for Iguatemi?

I think sales, if you worked in retail, I think sales cure everything. So I think sales are the main thing. In our operation, we're retailers, we're real estate in our essence. And I think Iguatemi have robust results since 2019 with significant growth. I think 2023, we had more than 11% of growth, 2-digit growth. And the reflection of this is a very healthy operation. And I think another effect, this opens in terms of opportunity is since IGP-M last year was negative. And we have a double positive event in the results. So first of all, more sales and IGP-M was negative. So this opened up an opportunity for us to improve our income per meter squared. So we started doing this work and we have the fourth quarter last year that ended in 11.1. And we saw that this opens up a window of opportunity to improve our income per meter squared. We started doing this work and when we look at the leasing spreads for renewal compared in last year, 7%. This number is already a negotiated number. So we have this capacity of inserting new incomes in what the store holder is paying now and making it healthy. And with a new table that we're going to have, this is going to be the work that we're going to have. So Cris talked about this a lot in the presentation and we would like to reinforce this positioning of improving our income per meter square, taking in this window of opportunity, increasing sales and also the more healthy occupation by the store holders. And we believe that it's going to be possible to do this work with an effective and clear challenge for this year.

Thank you, [indiscernible]. I'm going to go back to Charles. I have a last question. So this management that is efficient in terms of operational cost. This has contributed to close a positive account, right, in terms of the rent. How have you done this in the last few years?

So I'm going to elaborate a little bit before I answer this question so that I can really answer your question. So it's more than 10,000 items that we check on a daily basis in shopping centers. So there are 16 properties that are very big. So 10,000 is colossal, and it is, but it is divided into 16 units, operating the way that I said, 24 hours a day. So we check the temperature of the different areas, the air conditioning. There's also the working of the parking lot gates and also measuring the floor, if it's shining according to high standards. And also if they're not slippery or not, so we can avoid discomfort and lawsuits. It's a very simplistic view of the enormous amount of processes we work with. We also look for excellence and tangible elements and even in the intangible ones, but we want the customers to also notice this. So I'm just going to ask you for some support to project 2 slides for you, allowing me to make 2 more comments. So we work intensely in what we call the back of the house. So the scenarios before the -- behind the cameras, as was already -- has already been mentioned. So machines, deposits areas that are not visible to the customers, the mentality of quality permeates deeply also in what is not seen by the customer, the discipline, it contaminates. It's a negative word, but it contaminates everybody positively. And another point for this group that is involved in investments. This preserves the value of the unit. The asset value of the units. So there's the disciplinary value of quality, you're also preserving high-value equipment if you're talking about civil equipment or mechanical equipment or any other kind of equipment. So there's a value and the balance and we can't just neglect this in operations. And then over here, we have another 2 support areas. We have dozens of slides and all the shopping malls in areas that the customers don't see, but definitely, they are more beautiful than in my own living room in my home. I assure you and if it's not, but we are going to hear it. We also have -- yes, we're going to hear it, right? Because at a home, you don't say anything, right? I try, but we met me up real quickly at home. So we have a huge budget for maintenance and the installation to work with the shopping malls. There are 3 points. So a high standard for services in general, reliability of the installations of the facilities, if there's an internal crisis. If there's a problem, we attack everything immediately. Everything has to work. And finally, very important, safety of the people who go to the shopping malls. If they are customers, if they are store holders or elementary safety, things about fire, there's huge complexity preserving the tranquility of these elements. The excellence in everything I'm talking about is supported by training, occupancy and always trying to create the effect that Cris also talked about. So now I'm going to show you a third slide. So we have specific programs for all the areas. I'm only going to mention a few, there are many, for example, cleaning, maintenance, landscaping, marketing, controllership amongst others. The difference is not something trivial. You need tariffs, you need money, you need attention and you need persistence. So when you try to copy, you can see that this stomach in this pocket and this quality of management is extremely important. So now I'm going to answer your question, Fatima. So the actions that I talked about that result in attention -- clear attention. Looking at the cost of occupation that supports the negotiation mentioned by CEO. The cost of occupation has 2 main pillars. So it talks about rent and the costs of the condo. So that the store holder can actually occupy that space or those spaces in the malls. Over the last few years, I'm proud to say that we have reduced the occupation spaces in strong currency. We implemented a lot of initiatives that are efficient, which is doing what you do better or efficacious, changing the ways that you do it. And then about this graph that Fatima talked about or asked about. So 2 examples, between 2018 and 2019, we talked about consumption of water in the malls. We implemented a system and there was a physical economy of 12.6 or 16 shopping malls that are the size of a city and this is in 1 year. So changing of the toilet bowls, taking up 9 liters, instead of 9 liters 6. Also other ways of dealing with it. And even better than that, was the result. What do you get on this? In this case, the expressive reduction in the water intake is equivalent to 97 Olympic pools -- swimming pools a year. So that's 2 months of consumption of drinking water in a city like Campinas. So it's extraordinary. The result is extraordinary. Just talking about this. That's one action. Another example, in 2022, we changed all of the illumination. And now we have the LEED technology that has been proven after so many years of promises and results that were not concrete. So we changed everything and in 2022, there was savings of 9.6 in terms of consumption volume. So that's almost $1 million of economy a year. So I'll give you 2 examples that culminate in this graph that you can see over here. And the result of so many different management tasks supporting the occupation of the shareholders. So this made in 2017, and I only got these years, 2017 to 2023, we increased the debit of the store holders 17.5% or 2.5% on average per year against an inflation that was measured by IPCA in 31.9% or in GP 86.4. So guys, it's colossal. It's very strong. It's colossal and it requires a lot of work from many people. So this definitely administrates quality and tries to maintain the cost of the store holder, and this allows for the commercial evolution that [ Guido ] talked about. So we're going to continue working, going to fairs, abroad in Brazil, visiting companies in Brazil and working with expert, consultants in terms of air conditioning, for example, constantly trying to get efficiency or efficaciousness and always looking at costs, which is very important for our store holders or great partners. So I would like to end with a round of applause. What do you think? Thank you very much.

Thank you, both of you. Thank you. Thank you for your participation. Thank you. All right. So now we're going to continue the panel. So I am going to call Satomi, the Mix and Retail Director for Iguatemi. Satomi, please? Thank you. Thank you, my dear. Sit down, and I'm going to sit down beside you, so we're closer. So until now, Satomi, we heard a lot about chair in terms of the curatorship of stores. And this is reflected in the results for Iguatemi and coming to an occupation rate that preserves this quality. And I'd like to know how you balance this? Can't be easy, right? How you balance this equation so that your area can generate good outcomes? Sorry, I can't hear her. Her microphone is closed. No, not working yet. Just 1 minute. I think we're going to have to change for the blocks. They'll just give you a handheld microphone.

Well, I prefer that. I prefer that. Okay. Great. Okay. Everything is going to be solved here. Yes. I'm a karaoke singer, so I like it. So good morning. If you don't know me, I'm Satomi Nanba. I'm the Director of the mix and retail area and also relationships in Iguatemi here. I've been in the company over 14 years. So curatorship, that's part of the DNA of the company, Iguatemi. It's my area of mixing and it's part of what we have in our 16 undertakings, and we do this curatorship locally according to the regions where we are, the experience of our customers. And we believe that it's really differential aspect in terms of the competition. It's a competitive advantage. As Pedro said, our view is a medium- and long-term view. So of course, we want to sign good contracts, we want to have zero empty spaces. We want to increase the occupation, but we want to do this with quality. So not just closing with any kind of operation that's not going to help us to improve the experience of our customers in our malls. So the greatest challenge we have is to sign good contracts and with good curatorship and brands and services. We can do this in a way so that our customers are satisfied. The stores have good sales and, therefore, we're going to have good outcomes, right, good income. So everybody asks, how do we do this? So we developed our own methodology inside Iguatemi, inside my area, where we follow all of the behavioral standards and consumption in different areas in the shopping mall in terms of gastronomy, in terms of buying things for the home services, fashion, and we use these trends according to the needs of the customer, the journey of the customer. And then we're able to transform all of this into retail operations and services. And my area also works with 4 pillars -- under 4 pillars. A very important one is innovation and this is what helps us with behavior and consumption. We create a new operation, we add a new project, we add a new service. We have another pillar, which is planning. And in the planning pillar, we're talking about the strategy and we're talking about the ideal mix for each of the shopping malls. There's also a pillar, which is of intelligence. And over here, we're talking about GPI and KPIs, a lot of research is involved, a lot of studies that we develop internally and also an analysis of the competition and the pillar of relationships. So that has to do with following the journey of the store holders. So we're very close to our store holders. We consider them our partners and are going to help us to develop these operations that are exclusive and differentiated. Just so you know, we have a database of more than 8,000 brands and we maintain this active and updated. How do we do this? We have lots of meetings with the store holders. We're close to them. We're going to know if they're going to grow, if they have any other ideas. We love new stuff. We have a pillar of innovation, as I told you.

And you also love new things. I'm going to interrupt you because we would like to know what's new, especially for this year?

I'm going to tell you. But before that, I'm going to continue to explain a little bit more of what we do because I think this is a great opportunity, as Cris said, for us to expose ourselves so that you can understand what we do and how we do it. So when we're -- we don't really expect a store holder to knock on our door trying to sign a contract. We do the opposite. We go after them. We do active prospecting. We're always listening to what the customer wants and what the store holder wants. And then combining these factors and the analysis of the trends and a lot of trends, we are able to get a good mix of stores locally for each of our shopping malls. There's also an equation [ Fatima ] that is very interesting that we use in citing what they mean. And we say that it's to solving things, taking advantage of this. So every customer goes into the mall and he has to serve everything he needs. And they have to balance this equation well. What does that mean? So what does it mean to get everything done? It means that we have a services area. So you need to polish your shoes, you need to fix some clothes, you need a laundry and we have this service area waiting for our customers. And we also have the other side, which is to take advantage of your life. So you have to enjoy life. So the shopping malls today are not just consumption centers, this is also for entertainment and socialization and we're prepared for that. So the area has to look at this. You have to have this feeling. The mix has to have it.

So just for me to understand the novelties, in this mix, you look at the customer or the store holder or use both, who do you look at?

That's a good question. So we look at both. So the journey of the customer and what does he do in the morning, in the afternoon, at night, what does he do during the week, on the weekend? And we try to put this into retail areas. And also for the store holder, we have an area that is also with us, which is relationships. And we definitely get close to these shareholders, national, international ones and we make events and then we increase sales. So we work together. And then you asked me about the news that we have today for 2024. So Cedar and Cris have already talked about it, but I'm just going to reinforce it because it's really nice. So we're going to have the first store of LAUF here in Brazil in Iguatemi, Faria Lima. So if you're looking at Jonathan, and it's going to be a new collection, it's beautiful. We're going to have this in May. We're also going to have a second store of Balenciaga in Iguatemi, Faria Lima. We're also going to have a flagship from Tiffany in 2 floors here in Iguatemi. That's going to be in October. And we're also going to have here in JK, a new Manioca, the second unit in a shopping mall, and this is going to have a beautiful view. It's going to surprise everyone. And I can also talk a little bit more about how we study these trends because that's what people ask me the most. So how do you -- how does my area, how does my team understand these behavior trends and then transforming them into retail operations. So our focus is always to improve the experience of the customer inside our most locally, in a customized manner, in all of these regions so that our stores are in. But there's nothing better than giving you some examples, right? So in terms of gastronomy. For a while, this is part of a trend. It has been part of a trend that we have followed and people, they like cooking. People like experimenting new kinds of cuisines. They are traveling more and how do we unservice this trend, this gastronomy trend? So I'm going to give you 3 examples. One for example is Oba that we opened in Shopping Galleria in Campinas. Oba already existed in the city of Campinas with a few units, but we wanted for Galleria something that was closer to an employer, a little more sophisticated in the brands and the products and also stronger and more robust. And we called Oba to talk to them. We exposed our project and the fact that we wanted this emporium. There's an area of teas and cheese and a greater offer of noble meat and then we created the sensorial experience and that may also build what we have -- what -- the Oba that we have in our portfolio, in our shopping malls and it's very successful. And we did a project with [indiscernible] and the Oba that we have in Iguatemi, in Galleria as well as in Brasilia. We've also done a rollout in marketplace and offer here is different. It's exclusive and it's according to the needs of our customers. And still within this gastronomy trend, I can also talk about KITCHIN, the restaurants. KITCHIN also existed and it was on the street, small restaurants in Italian and here in JK, I'm looking for a restaurant that could serve, take advantage of -- the customers could enjoy live. So to do everything here around JK, there are several companies that need -- people needed to have lunch and not too expensive. It have to be something quick. And we also wanted a restaurant that was a little more female, lighter sort of food, that women could come here and maybe call friends to have lunch and then extend to shopping in the afternoon. And we also had a customer that asked for a nice restaurant to be able to take his family on a Sunday, on a Sunday lunch. So we called the people from KITCHIN and then we were able to bring this new project for KITCHIN with a menu and menu that could actually serve all of these different profiles at different moments, things that you need in different restaurants. And they accepted the challenge so we built KITCHIN and we also did the rollout, so that's where RIMA came out in Iguatemi, Faria Lima. We also have stores also in Pátio Higienópolis. And the last example that I also like to talk about is the one of ManÃ. So I told you that we have Manioca that is going to open up in JK in October, that is different. But what is the story of Manioca. So Manà is a restaurant, a street restaurant that everybody knows, it has stars. The chef is great, Helena, and she has an appetizer menu, so a tasting menu. So we went there, we knocked on the door and Manà Manioca opened in Iguatemi, Faria Lima inside a bookstore. And then we said, okay, so we have this space. It's a beautiful space with a great view. You can see the boulevard and the parking lot of Iguatemi and we would like a shopping mall version and that's where Manioca came. So it was also a 4-hand project. We could also suggest things for the menu, even the uniforms of the waiters and we also talked about the tables in them and that's how we work.

Yes. Definitely, we were able to see clearly that Iguatemi delivers what the customer wants, in the form that the customer wants. It's not easy to put this up, but you were able to connect all of these different behavioral trends because it's people's behavior. It's on the street. So you bring it in and you make an equation that I think is extremely well perceived by the customers. Thank you very much. Do you want to have some last remarks?

No, I'm finished. Thank you.

Thank you for your participation. Thank you, Satomi. So it's great to learn with all of these narratives. And I also remind you that we're going to have a Q&A session afterwards. So if you want, you can start elaborating your questions. So it's not only myself, [ Fatima, ] who is asking the questions. So we're going to continue this panel. We have one more presentation by [indiscernible], she is the Marketing Director and sponsorship for Iguatemi, but she was not able to be here with us today because she is representing the company in an innovation event in the U.S. SXSW. But she recorded a video for us. So I'm going to ask her the questions. So I'd like to know about the main conquest that you've had in the marketing area over the last few years and especially how she quantifies and monetizes the sponsorship area. Let's go.

Good morning, everyone. I am [indiscernible]. I am the marketing and sponsorship Director of Iguatemi. So first of all, I'm going to talk about how we structure our strategy. So in marketing, we want to understand the experience of our customers and how that can impact our business, physically or digitally. We do a lot of research and segmentation of the customers to be able to design and trace the trends and then direct our communication, our efforts in marketing. So I'm going to divide my speech to 2. First of all, for us to generate the experience for our customers. And the second part is about the assertive investments that we have made in media. Just so you know, we identify 8 different types of customers that come to our shopping malls every day. And each of these profiles and these segmentation has a standard for behavior and shopping and, therefore, makes them different and this gives us great knowledge of all these opportunities. So coming to your question, all of this is reflected in a series of initiatives and actions that are created in the malls as a part of what we do for our customers as motivation or through our campaign for Iguatemi collections. We were sure that this campaign would be a success, and customers wanted to participate and this helped us in the store. It was great. Iguatemi is always bringing this every year for our public and the products are different and innovative and great quality. We are also able to take advantage of the action in the mall to bring a greater flow to our stores. This generates movement and opportunities. I thought it was great. I loved it. I have already got it. I got a bag and some luggage and the glasses, and I'm going to continue because I want more and I even spent more money. I want to be surprised, and that's what we've been seeing in every addition. We're surprised with the product, with the quality, with the details. So I think that we can maintain the level with these great brands that we bring to our customers. And I would really like to have Iguatemi collections all year. Iguatemi collections, the moment with memorable products. So already in our third collection. And there's great engagement. We have the moment of the average ticket of our customers, an increase in the average ticket and also an increase in royalty. We have more than 268,000 gifts that were taken and more than 500 participants. Our first collections happened in the first part of the year. And the third collection that was 2023, we had greater identified sales. And there was a growth of almost 300% in the customers who participated. And all of this is reflected in our own content, exclusive content. And in 2023, it was almost 200 million views. And if you haven't seen it yet, if you were not able to see it yet, it is our platform that has videos and podcasts and other formats. And then we have a very special curatorship for our customers. And this is seen and elaborated by us, and it helps us to look at the -- to get desire from our customers. So it's definitely something that increases our sponsorship. So if it's off-line or in our platform, the Iguatemi 365, we can increase the points of contact with us and elevate the opportunities of our business, creating this great digital ecosystem of opportunities. Our focus this year is going to remain and transform opportunities into new business for our store holders and for our partners. Sao Paulo Fashion Week that we've been doing for more than 10 years is a great example of this. So it looks as the fashion curatorship. We've been in stage for a very important fashion shows. And this year, for the first time, we're going to have the complete addition in our shopping malls, partly in Iguatemi Sao Paulo and JK and the content is going to be connected to this ecosystem and our store holders. And we cannot forget the fashion that is the greatest conference fashion in Latin America. We've had very powerful names in the fashion world like [indiscernible] the Executive Director of [indiscernible] Christian Louboutin from Louboutin shoes and several other important names. So Iguatemi has a robust calendar of events and annually, this moves our malls. Iguatemi Media, we're able to translate these trends and marketing and negotiate more than 650 temporary locations, media, merchandising and also event areas. All of these properties are strategically positioned so that we can stimulate sales and the testing of our products and services. Over the last few years, we monetized all of this with sponsorship and even operating them. So bringing the whole ticket to our revenues. And a great example of this is what we did for Stranger Things. It was a great success. It was with Netflix. So we inaugurated the first store, Stranger Things in JK and Sao Paulo. And besides that, it was an Instagrammable area that was very successful. This experience has been through several other cities like Los Angeles, New York, Paris, Milan, and it definitely mixed our flow and moved our flow. Another super case we had last year was the Barbie event that was a phenomenon. It was the first project of international licensing, where we developed it 100% in Brazil. And with that, we were able to get more than 3 million in terms of tickets. We increased our flow of vehicles and also a relevant participation in the income of the cafe and the store. Barbie was an entertainment -- the best entertainment that we had in Iguatemi in terms of income. And with this change in the strategy of events, we're able to go to the monetization of these events. Always working with exclusiveness and personalization. And now the second part of my presentation, over the last few years, we're able to be more efficient in our expenses, so lower than inflation. And we contribute to our level of occupation, which we have also reported. And part of this is directed to the famous promotion fund. It is responsible for the events and pay the campaigns and support everything that we do in terms of disclosure for our events. And who were more assertive in our marketing tasks and today, our efficiency is greater compared to before. A good example in our area is that today, we are able to save 42% in our costs and in our digital campaign in 2023. So in other words, we're able to talk to the same people but spending less and this is the result of research work that we did in the mapping of our consumers. So our campaigns are going to be more assertive for our customers. We have a great asset, which is the customers. So they circulate on a daily basis and maybe because of our relationship program or the shopping they do through Iguatemi 365 or when they see our view, our content inside Iguatemi. Today, I'm going to talk about Iguatemi One. It is the relationship program for Iguatemi. So to participate, you have to download the app on your phone, and you can take pictures of the invoice, get the CPF and the more you put in, you will have other benefits. So if the events on the campaigns have an important role in the daily flow of our undertakings, we're also able to get this -- make this more profitable. But not only with the objective of getting more customers, but also making it -- monetizing it. Thank you for the participation and it was nice to show you our good results. We're still focused on new challenges.

It's great to hear [indiscernible]. Thank you. She sent us the message. She gave us data and numbers and also showing how much this increases the flow in the mall. So now we're going to be -- for another part. We're going to have another panel. And in the second part, we have 3 people: Dilene Teixeira, the Vice President of Governance, Risk & Compliance; and Joyce Leal, Human Resources; and Daniela Isai, who is management and ESG. So we have all 3 of you here with us? Wish you a good panel and over to you.

Good morning. Okay. Now, it's working. Good morning, everyone. I'm Daniela and it's a pleasure to be here with you to talk a little bit about our ESG area. Well, although the ESG area is relatively recent as part of the structure of Iguatemi, only 2 years. The point is that this has been with us for a long time. And as you saw in the video of -- with our controllers, words like innovation, our concern with the environment, with social aspects. This has always been part of our values, our essence and our behavior. And to show how true this is, 16 years ago, when I got the company, I got one of the social responsibility projects we had in the company, and it's called partners in education. We support some public schools through partnership actions. It's been 16 years. So although it's something recent, it's not something new for us. And 2 years ago, we created a formal structure in the company to look at this topic. And as Cris said before, once in a while, we'd like to take a look at our mission, our values and see what kind of updates we have to make. And when we talk about ESG, it was important for us to incorporate some relevant topics. And we bring the inclusion of different people, our -- looking at sustainable results, innovation always and the impact that we would like to cause in our ecosystem. And looking at our strategy, this is how we saw our material. So intense work talking to several stakeholders, the Board, the store holders, collaborators to be able to look at the material topics for Iguatemi. So we have the translation into 12 planes divided into environmental, social and governance. So when we talk about environmental, we talk about our concern with climatic changes, sustainable construction and you're going to know a little bit more about this later on in the next presentations. Looking at waste management. When we talk about the social aspect, we're not only talking about people, we're also talking about all of our society. And governance, it's important to say that we are always concerned with ethical behavior, not only inside Iguatemi, but looking at our whole chain vendors. And how do we manage all of this? So we created forums, governance forums and Dilene is going to talk a little bit more about our committees, but I can talk a little bit about the people, committee, ESG. It is the organ that looks at the strategy and it makes -- it gives advice in terms of the Board. And we also have the commission of sustainability and it looks at our commitments and our advances, looking at the indicators of each topic. And the ESG squad, it has the objective of managing all of the initiatives that are necessary for us to be able to deliver our strategy. So it's been 2 years. It seems like it's recent, but a lot has happened. It was 2 years of a lot of progress. And we organized our policy for sustainability. We also did 2 inventories in terms of greenhouse gases, we're doing -- going on to the third one. We did training of the company about ESG and compliance. Dilene is going to talk a little bit about that. We had 1 week of ESG training for 100% of our collaborators. Then we have 3 movements in the global impact. Joyce is going to talk about that. And the importance of this commitment, we incorporated ESG, it was 10% weight. And as I've already said, we structured all of our committees in terms of support for advice. We published our first sustainability report, as Cris said, where we consolidated several initiatives, and I recommend that you read it because we're not really going to have a lot of time to talk about it all. And finally, showing that we are persistent in our path, and we received some certifications. And at the end of the year, we started to be part of the [ ESG. ] And the advances are also in the environmental area. Charles brought a few examples for us, but I want to bring you some others. So we had 3 assets that were certified LEED Gold last year. The Sky Galleria. Sky Galleria is in Campinas, it is our last project. The 2 towers of Market Place in Sao Paulo. And also Casa Figueira, it's a beautiful project that you're going to know about more today. We also received a certification in the AQUA phase of the projects. All of our projects are thought of in a sustainable way. And throughout their construction life and operational life, we also take care of that. When we go into waste. We had an interesting history last year. So we committed ourselves to 90% of reuse of waste and 10 basis points above what we did in 2022. And even so, we're able to get 91.2%. And the target for this year is even more aggressive. And looking at our emissions. Now we're going on to the third inventory in terms of greenhouse gases and always trying to get improvement in our process as continuous improvement, and we're going to have an auditing system and we have an audit being done and that's a good market practice. And I think that we don't need to talk about the water that we saved. The Olympic swimming pools and besides what was said the treatment of sewage and also the uptake of water from new areas. So several initiatives that contribute towards our advances on this topic. And finally, I would like to invite you to hear a little bit more about our sustainability report, read what is available and wait for the next one. Because very soon, it's going to be published. So let's watch the video before Joyce comes in. Here in Iguatemi, ESG has always been what we do. We always looked at our environment, for energy, for water, for materials and people have always been central in terms of diversity and also in terms of governance. We have also done a lot of evolution and we decided in Iguatemi to make an ESG report to be able to communicate everything that we do. But more important than that is for us to look at the opportunities that we see in the ESG pillars. The market is used to look at financial indicators of the company. But it's very important to see what the company does with the financial resources. So where they apply these financial resources, what are the impact of those financial resources in society as a whole. And the ESG report helps us to see the opportunities that we have to improve. And what we do well and what we can inspire other people to do as well or help to do better. So besides of this report, sustainability report, you're going to understand Iguatemi. You're going to understand Iguatemi not only in the financial aspects but also the history of our company and you will see how we work with our resources, always looking at long term at our company. All right. So thank you, and I'm going to call Joyce Leal to talk about the social pillar of people.

Good morning. I'm Joyce Leal. I'm the Director of Human Resources and I am more well known as Joy inside the company. It's a pleasure to be here. So our view of human resources is clear for all of our collaborators and our employees. And Cedar made this very clear. So talking about people is very important for everyone. And after they talked about this a lot and how talking about this is important, I'm going to -- I'm bringing a summary in one sentence what our priority is for the next cycles. So our priority is to attract, develop and plan the succession of our team, thinking about the next leadership cycles and sustainability of our business. And for this, it's very important for us to know our numbers and our actions, so I am going to bring a little bit of data about our people. So today, we have about 2,200 employees. Out of these, 42% are women and 58% are men and a very significant fact is that if we look at the leadership areas, we already have the same equality in gender. So women are 60% of our leaders -- 51% of our leadership. We have our directors, there are 60% women and we have 50% of women here in our Executive Committee. And definitely, this is our commitment to diversity, equity, and inclusion. And we chose 4 main things to work in and they are people that are above 60 years of age, women in leadership positions, people with deficiencies and black people in leadership areas. We believe this is continuous evolution. We've been working to improve our indicators. We also invested in a variety of training and development programs for all of our people. Charles talked about several. Cedar also talked about the importance of training our commercial team. And these programs, they focus on developing technical abilities and behavioral competencies. So focusing on the professional development of everyone. I think all of the executives that were here, they are examples of this development. So we had at least 1 cycle we went through. So in these 13 years, I went through different positions. We try to integrate people according to the programs. And then our favorite one is to stay 1 day in a different operation. So this reflects about what happens to how we can improve people's daily lives. I've had the opportunity of being a cleaning assistant, a fire women and a security guard. It's not easy. And all of our collaborators, they participate actively in our Iguatemi Academy, which is our platform for courses and training. Today, we have 290 courses available and this allows us -- 2023 allowed us to accumulate more than 84,000 hours of training. And this reinforces our commitment with continuous development of all of our employees in all levels of the organization. And how to develop leadership is -- since that is our priority. In Iguatemi, we have several programs for all of the different levels of leadership. So I'd like to highlight one over here, which is essential to start the process, which is Ribeirão Iguatemi. It is a program directed at forming the leadership. So started in 2019 and since then, it's more than 380 and a significant increase in 2023. And our social responsibility is also very important, and it's a reflection of our vision and our values. So we invested in projects that increase citizenship, education and improve the quality of life in the cities we work in. Today, we have 3 pillars: education, cities and citizenship. And Daniela has already talked about our partnership. In cities, we work to improve the infrastructure of the places we work in. An example of this is [ parque de polvo, ] all the maintenance and preservation that is done. In citizens, we try to engage our collaborators and society, supporting cases like [indiscernible] and one day of everything that we get from our parking lot is converted to an institution that works with this cause, which is for breast cancer. In 2023, we got several certifications. Cris has already talked about this. And when I saw Charles and Guido talking about people, my dimension of pride and GPTW went up because I think this is the objective of anyone who works in human resources, guarantee that the leadership is engaged with this topic. So for the fifth consecutive year, we are in GPTW. In 2023, we are certified as the best company or one of the best companies to work in, in the retail sector. We were also recognized as one of the best companies in the Midwest and in [indiscernible]. We are also -- we also have a healthy practices, also in the ranking of the diversity and inclusion from Ethos, and we're the only company in our sector in this segment with this kind of recognition. And also for the third consecutive year, we were recognized as top employers. For the first time, we worked in the resilience industry and AON. And we've got a maturity of 85% in the actions for resilience and determination and topics that have to do with well-being and health of our employees. And as we move forward, it's also very important to stop and reflect on our commitment. So Daniela has already mentioned that we took on 3 commitments. So these are the movement of dignified salary. And we believe that this reflects the working environment we have that is fair and feasible for everyone. So now I'm going to give the floor to Dilene to talk a little bit more about governance. Thank you.

Good morning, everyone. It's a pleasure to be here. Thank you for coming, and thank you for the opportunity of sharing with you a little bit of what we do. I'm Dilene Teixeira. I am the Legal VP. And since 2021, I was also in the GRC area. I have already worked in the diapers changing area and I've already controlled the entrance into this building. It's not easy. So since 2021, the Legal VP took on the GRC area. So this is an extremely important subject. And it's the G from ESG. And this is something we're always concerned about. Iguatemi is an extreme -- and a company that's extremely concerned with its processes, its dynamics, the routines. And we believe in this way of organizing things. We believe it's an important mechanism for decision-making. And we also understand that a good governance guarantees a balance of interest among all the people that we have relationships with, especially in the market. So I'd like to remind you that in 2021, we did our restructuring and we also improved our systems and governance mechanisms. And we're always concerned about this. It's important to say this. We have an example in our area. There is a person who's been there for 20 years, she came from the energy sector. And when she arrived 20 years ago, she was already part of our [ Veteran ] Energy Committee, and this shows a way of organizing that is consistent and comes for many years and also a concern with sustainability from back then. So reminding you of our operation was that the IGTI incorporated the area of IGTA, creating 2 classes, and they migrated to Level 1 of governance in the stock market. But this does not mean that there was a loss with regard to governance structures or management of our business. So we were committed to maintaining the same recommendations of the companies listed in the new market, and we continue like that. The exception is in the class of preferred actions. And I think it's important to mention that our preference today has rights that are not commonly used in this class. So we give advantages to our preferred customers and everything is explained in Article 7 of our statutes and this -- in our articles of incorporation, and this was changed because of this operation. Already talked about this. Okay. So within this reorganization, everything that we did to update ourselves in terms of this new moment, not only the growth of the operation, but also maintenance and preservation of culture, which is our DNA. We created 4 statutory committees that did not exist with the objective, the main objective of helping our administration Board in the decision-making. So the first committee that I think deserves to be highlighted here is the one of auditing that is made up of 3 people, 3 members, all of them are independent. They get together 6 times a year or extraordinarily whenever necessary, and it is responsible for following up our financial statements, the work of internal auditing, internal controls, also the management -- the risk management of the company. So it's working actively and there is a very robust agenda with a strategic basis as well, just like the others. The second committee is the one of Risk and Compliance, which also made up of 3 members, 2 of them represent the controlling shareholder and 1 independent, one that is also a number of the Board. They get together 4 times a year, extraordinarily whenever necessary. And they follow our work in the risk area. So basically, the follow-up of our risk map, the probabilities of the impacts, the plans regarding these mapped risks and also our compliance program. And it also became more robust over the last few years. I think it's worth mentioning that although we have this fit that is very clear when we talk about the organization of the processes and governance, we made an important investment to be prepared for this new moment the company is going through. So the legal area took over the GRC area, creating a Board for GRC. And one is auditing and risk that has a manager for auditing and risk. The other one is compliance and governance. And we applied more modern technology. Today, we do auditing based on risk. We also established, as I said before, this program. The compliance program that is structured in 9 pillars. And last year, we also did some training that worked with 100% of our employees. So we went to all the shopping centers, all the shopping malls and some even started at 11 p.m., just a guarantee that we were covering all of the different shifts. We had almost 2,000 employees being trained to be able to understand the importance of the correct attitude, the culture of integrity in the company without a bias because we believe that engagement is the understanding of these topics and it really makes sense. It was very successful and this is how we're going to continue working, trying to reach our objectives. And the fourth committee is about people, culture, and ESG, so it also has 3 members. 2 also are the -- represent the shareholders and the controllership, another one that is a member of the Board. They also get together 6 times a year or extraordinarily when necessary. And it also talk about relevant topics, our employees, our culture. So this follows our cycle of people, our salary structure, our succession plans, the issues that have to do with culture, the DNA of the company that we believe strengthens all of our actions. And also the ESG guidance, which is the objective of our panel and treated by this committee. And finally, the last committee, which is finance and allocation of capital. There are also 3 members and 2 represent the controller, 1 that is independent also part of the Board. They get together 4 times a year, and they follow up all of the financial area, the capital structure, investment, divestment and financing and also provide support for our growth, so doing -- managing our cash. So it's also very important to say that although I talked about these 4 committees that are statutory and formalized and they are foreseen in our Articles of Incorporation. We had another 2 created in 2021. These are internal committees. One is CDI, that is a committee for institutional development. The other one is CND, which is the committee for business and structuring -- digital structuring. So I think we have great formatting, best formatting to help us in our consistent growth in our longevity, always focusing on transparency and ethics, and these are values that we believe in and we never set aside. All of this work was crowned. The several people have already mentioned with the [ ESG B3 and D3. ] And we also have -- we still have a lot to do. We're still very excited and we're very sure that we are following the path that we believe to be correct. Thank you.

Thank you. Thank you, girls. Thank you for your participation and for all of the knowledge and having us go deep into this topic that has been talked about for a long time. And many times, we don't understand how it's done. And before I start the next session today, I'd like to remind you of 2 things. First of all, that, at the end, we're going to have a Q&A session. Usually, there are answers, right? Some places only have the questions and no answers, but we have answers here. So if you want to ask questions, just access the QR code, it's there on the screen. If you're with us online, you can also participate and ask your question. I would just like you to ask only one question per person because we want to try and respect the time. So now we're going to start our last panel of Iguatemi Investor Day, and we're going to give you financial information. And first of all, we're going to talk about growth opportunities, organic growth opportunities. So I'd like to call [indiscernible] and also Claudio Soares for engineering. Thank you. Thank you, both of you. So my first question goes to you, [indiscernible]. So I'd like to start. I'd like you to talk about the strategy of development, real estate development in the business objectives of Iguatemi. So are some of these assets in this stage of maturation, can you tell us how this works? There's no sound, please.

Good morning. Okay. Good morning, guys. Thank you. It's a pleasure to be here with all of you in this Investor Day from Iguatemi. And I think you don't know me. I'm the youngest one here. I've been at Iguatemi for 4 years. And I am the Director of Development and Real Estate Management. So I want to talk about our assets, but I'd like to say that the location are most very important for the maturation cycle. And most of our customers, it happens around our mall, so in this way of influence. And this way of influence, this is how our customers come to the undertaking. If it takes 10, 15 minutes by car and it means that the denser the quality of this and the income, we have more available in our malls and all of our malls were built in areas with these characteristics. So there are large growth centers qualified growth centers in the city. So besides this, besides our undertakings being strategically located in the vectors of growth in these cities, you also have a lot of land where we can develop our complexes and they can become multiuse complexes and then attracting the people around. And this is due to the relationship with great real estate owners and we sell factions for the development of projects, residential projects and offices. And we also create partnership with these incorporators so that we can have these real estates. And I'd like to say it's a huge benefit because besides the cycle, the incorporation cycle, it takes 4 or 5 years for this asset to be ready. It also anchors our malls with greater flow, with greater income. And of course, these incorporators are more attractive to develop new projects around our malls. And we also create a virtuous cycle. So the more people we have around us, the bigger the flow, the bigger the sales, and those sales cure everything, right? And cures are evil, right, as they say. And now I'd like to show you one of our cases, Iguatemi Ribeirão Preto, it's a mall that clearly, according to this image on the left, it shows how was around the land that we bought and now 10 years later, in 2023, completed 10 years and how much this grew, the surroundings of the mall grew. So it was almost 200% growth of new residences and more than 60% of them were Class A, B. Our mall is in an area of about 100 meters squared, and it already have 2 office towers, more than 60 rooms, 25,000 meters squared of private area. And next year, we're going to have a launch of a residential tower, and we sold this to a local real estate dealer. And we also have an ideal fraction that was sold in another office tower. So this shows how the area around actually attract people so that they will do things with us. And something else I wanted to show you is from Iguatemi Rio Preto. In the same way on the left, this is the image of when we bought the land. And now 10 years later, the shopping mall is completing 10 years of age, 2024. And we have more than 100% of this family growth and almost 50% of residences as well. And if you compare with the growth of the city, this was much bigger. And Iguatemi Shopping Rio Preto, it's also an area of 100,000 meters squared and it was also anchored on 3 residential towers. And now 10 years later, there are 5 towers with a shopping malls. So 1 hotel, 1 office tower, very elevated occupation rates in the hotel. Last year, we had the 3 residential towers at a high level, and now we're going to have another. And this is -- there's an ideal fraction and this is being constructed, and this is also for next year. And in 2023, this is an office tower, more than 300 units, and this was a success when it was launched. I'd also like to show a video of the corporate tower of Sky Galleria. Can you please show that? [Presentation]

Thank you. So Sky Galleria is our greatest example of this. In my area, in terms of real estate development, we do quarterly evaluation everywhere we are. And we can see that in Campinas, we have quality products. So we did a partnership with a local -- the local people, and this is for the building of Sky Galleria, and that was very successful. So we have more than 50% of the allocated tower. And then 1.5 years after, we have 100% of occupation. And companies like Itau, [indiscernible] Prudential, Pricewaterhouse, this means a daily flow of 1,800 people translating this into the mall. We have an increased movement, more than 90% of our food court. It has accelerated the closing of our areas and also the reduction. And the development, the active development of our complex, it doesn't bring only slow and income revenue, which can also monetize all of this. And just so you know, we commercialized more than 8 residential -- actually 2 office towers, 8 residential towers. And when these assets will be ready, it's about 60,000 meters squared of private area and now going to bring more than 5,000 people per month circulating in our shopping mall. So it shows that our direction, active direction around our malls. So this contributes to our maturing. And we still have 1 million square meters to commercialize in the selling of fractions. And this is important for growth, especially in terms of the younger assets that we have. And the last data is that these sales, the recurring sales that we have in terms of the shopping malls, this generates BRL 25 million a year. So we think that shopping malls are just shopping malls. But no, it's not enough to be in the shopping mall and having the shopping mall. But anyway, getting everything that Guido told us about this development of the surroundings and projects and things that have to do with it. So there are actually opportunities not only for you. So I heard recently about Mayer. I cannot talk about the cities or things that journalists can talk about. So it's not going to be us. It's another place. But I would just like to have what they need here, he said that. So it's really developing this city. And in this sense, I know that you are going to revolutionize Campinas, and I would like you to tell us a little bit about the Casa Figueira. What is this? How do you think about it? How does the story work?

Okay. My microphone is working now. So first of all, I am Dr. Soares, the Engineering Director of Iguatemi. And I'm very happy, and I'm very excited to be able to talk about the Casa Figueira Project. And it's a very special project because we thought about it 14 years ago when we're inaugurating Iguatemi Campinas. So it's a privilege to be here talking about it to all of you and for our staff here from the company anyway. So thank you very much, Fatima, for the question. So can you talk about qualifying an active densification of the surroundings. And Casa Figueira's maximization of this qualified increased number of people in the surroundings. So Casa Figueira has -- this is 1 million square meters, and that's equivalent to Vila OlÃmpia -- it's a district right over here beside us. So we will be implemented -- we have about 50,000 inhabitants like the total population. And that's equivalent to the second best district in Campinas and Cambui because that was going to be the first one, which is Casa Figueira, right? So it is made up of buildings that are completely vertical. So we're not going to have any residences, any houses. So we're going to be vertical. At the end, there's going to be more than 100 buildings, commercial and residential. Guido you help me, how many square meters of sales do we have there? We have 303,000 meters squared for plots of land to sell, so 1 million. I still have 60% of green areas inside the project, green area or institutional areas. So I want to talk a little bit more about these green areas and what they add to the project. So all of this with qualified architecture directed by us. So it's a very special project. Casa Figueira is very special. And our learning, the way we do it, the way we do shopping malls in Casa Figueira, and I'm going to explain how we use this knowledge that we have over there. And we started the project with urban concept. And the first thing we did was choose a qualified partner, well known around the world to develop our master plan. It was [ Brother Malion ]. So when [ Brother Malion ] started participating in the project, we went to what we call a definition of micro centrality. So it's dividing this 1 million meter squared in parts. And what are these micro centralities? So these are areas where people are going to have leisure, services, commerce, and they're going to live at a distance that is the distance that they can work. And the main centrality is the main anchor, which is Iguatemi Campinas, right beside these micro centralities. And just like in the shopping mall, we have anchor stores. And we did this in the district, which is Iguatemi Campinas. That's the anchor, and that has been consolidated for more than 40 years. So then defining these micro centralities, we started defining the principles of quality of this urban environment. And we were based on the [ Ungel ] principles. And I'm going to ask a test question. Are you prepared, Guido? So do you remember the 4 principles, quality principles of the urban undertaking Casa Figueira? Yes, we have safe, it's alive, it's healthy and it's sustainable, okay? So let's put the answer. Oh, wow. Wow, well done. Well done. You passed the test. Well done. So this is what we want for the area, and let me explain. These are the 4 principles. And effectively, how did we practice this? How did we put these 4 projects or 4 principles in the project? So it's more than 100 actions that we develop to be able to place these 4 principles. And I'm not going to talk about some main ones. So I just don't take too long. So definition of public -- qualified public space is always prioritizing use by people. And project, the project that was seen as more than 60% of green areas, institutional and cultural areas, and defining the use of mixed-use space, commercial, residential, institutional health of different ones and defining standards of architecture. So the project on usual, you're going to see in a minute what they really want to be. And we also have mobility. So the first element is people. And also the implementation of ESG. Daniela has already talked about the project. And in the construction and in the useful life of the project, I'm going to show you how. So definitely, I took more than 20 minutes on the companies, so I'm going to stop here about this. How are we going to guarantee that all of this is going to work in Iguatemi way of being? And it was instituting the association that already existed, and the objective was to maintain and take care of this district. So we're going to stay there our whole lives. We're going to take care of it, and we're going to be the leader of this association. And this is how does Iguatemi do in the malls. And Charles said it well, sound processes. And what are these processes? These are the guidelines of architecture so that we have like a readership in this. And then we also have the Aqua certification that we already have. And we want to use it as a process to maintain this, to make it sustainable. And the results we expect, of course, the acceleration of economic development in the location, generate business opportunities, consequences, generate employment for the adjacent area and also having a creative, collaborative, sustainable form of life and also perpetuity of Iguatemi Campinas, which is the anchor of this business. And then where do we want to get to? So we would like to build a district that is alive. It's for the future. It's for people. And also, we want to get the best one in Campinas, the best one in the City of Sao Paulo. And we want to be referenced in Brazil, and we will be. And we're going to put the video of Casa Figueira. What moves you is transforming dreams into reality and being able to create and build something new and unique. If what is important is to plan the future that enhance you and to place all of your strength and competence, have new encounters and go beyond what you started to think about and knowing that all of the aspects count because every instant is the beginning of a new reality. And even with all the effort that is necessary, you're able to make you change your ways. And the quality and sophistication, all of this is present in all of the details of this new undertaking. Even though causes are necessary to be able to build very well and with excellence, build everything that we want to do. And as a result, we're going to find the balance and harmony in all of the different phases. At the end, every seed carries the tree that it will become one day. So only something is not enough. You have to really make a big effort to take care of it and bring the best of technology close, the best talents, the thoughts -- the best thoughts and hands for what we wish to build. The dream is to put our lives in constant motion. Casa Figueira district, come and be surprised with the future that we have already started building together. Fantastic. So I'm very touched by this video, and I can definitely say that it's very touching. In motion, it's definitely the biggest ingredient in our projects. So everything that I said, and it's always great to be in our project. And the main news is that we have already started Casa Figueira. We have started to make the streets and everything, and we have a short period of construction 24 months. We started in January. That's the main news for you. So I'm going to end here. But I just wanted to say that this is how we work. This is how Iguatemi works. This is how develops it's project, not only this one, but all of our projects, the smallest ones and the most iconic ones, always placing our identity, our culture, our brand and our emotions in each of the projects. So finally, [ Fatima ], thank you very much for the question. Above all, I thank you for that emotion because maybe we only want to think about the investment or thinking about all of the issues in terms quality. But if all of this comes in dry and hard, it doesn't make sense. It doesn't make sense to live, right? So now I'm going to throw you the last question, which is about growth. So how do we see this future? What can you anticipate for us? Yes, of course. That's a great question. And I have the opportunity of talking about our growth. So our shopping malls, they are born modern. And our great mission is in our DNA, as has already been mentioned. And we have the mission of keeping them modern over time. So one of the growth fronts are the development of our surroundings. And there's the flow. There is the revenue that monetizes things for us. And there are other things that we work on the development of greenfield projects and expansion as well. And I can tell you that today, our focus and our priority is on the expansion of our assets in our existing shopping malls because you have greater return, high returns and there's also great generation of value for our company. And there's the addition of these assets. And there's a high demand, and there's the potential for adding new things in this area and for the shopping mall as a whole because there's the mix of opportunity and Satomi can work on the new stores and new trends and also looking at also the new ones. And I'd like to share some images now of our project for the expansion of Brazil, as mentioned by Cris. It's a great example of Iguatemi Brasilia, has a low vacancy rate and there is repression of the luxury stores. This is a segment that brings great productivity per meter squared. And there's also a differential aspect in our malls. And we communicated more than 15,000 meter squared in the shopping mall Brasilia. It's going to go to 50,000 meters square consolidating our presence in the capital of the country. And we believe that this expansion is going to be very profitable because more than 50% of this new expansion will be of satellite stores. This is a segment that has high profitability, and also due to our productivity and construction capacity, right? So this has already been -- the expectations we started beginning of this year, and we're going to take 18 to 20 months, we hope. So besides Brasilia, which is one of the projects that we talked about, and the Sky Tower, the Casa Figueira district that Claudio talked about, I also wanted to show -- and we also talk, as we work with the information of our malls and there's a retrofit in marketplace. So residential tower. And we also have the private area, 11,000 meter squared of private area. And there's an open mall. There's an office with an auditorium with a business center, with a rooftop, with an area for events, restaurants and others like tennis courts, beach tennis courts. This is the first phase of the modernization of marketplace. The 2 next phases, we're going to do the retrofit of the Facade and with the restaurants opening our shopping mall and the retrofit of the corporate areas. And then we also the selling of the fraction of the land. It's a corporate tower, 17,000 meters squared. And as I said, Campinas needs corporate products -- quality corporate products. So until today, we have received calls from companies knowing if there is space on Sky Galleria. So this corporate tower in Iguatemi and Campinas, it connects with the area that we're building, the district we're building, having a flow of customers and people who live there. It is also going to increase our ABL, the corporation and strengthening Iguatemi and keeping its innovation strategy. And it's important to tell you that we work actively with mixed products and trying to improve the surroundings of our business, our core business. Thank you, Kay. Thank you for the detailing of the new projects that are going to come in. Actually, you managed to show very clearly how much Iguatemi puts its unique brand in everything that it does. So thank you very much for your participation. Let's give them a hand. Thank you. Thank you. So guys, we are getting to the last part of our event, our program. I'd like to reinforce that if you're interested in asking questions, please access the QR code and ask your question to any executive. And for the next one, I'd like to call the Vice President of Finance, Guido de Oliveira.

Thank you for being here, for joining us. We heard a lot in the previous rounds about the strategy that is based on robust development of Iguatemi and urban and real estate development. We also heard about the importance of cash generation for the company, right? No companies can survive without that. Several investment possibilities, and this definitely attracts us. And this has been pointed out by all of you. So first of all, I'd like to know if I'm in the right view of the logic that I just presented and how Iguatemi has been concerned about financing its projects.

Hello. Good morning, everyone. I'm going to have to entertain people with numbers. Only legal issues, and now I'm going to have to talk about numbers, right? That's horrible. So I think everybody knows me here. I'm Guido de Oliveira, the CFO of the company. It's a pleasure to have you here with us, on Investor Day. I'm very proud to have this whole team in Iguatemi that did very well in other presentations. But thank you very much for the question, Fatima. It's important to talk about cash generation because we have to finance all of this. And I think we can start talking about our results. As Cristina said, we have been setting records over the last few years. We offset all of the problems that retail sector had during the pandemic, and we had a record year of 2023. So I'm showing you a slide with our results. And over here, we have most of the results from the company, the operational and financial ones. But it's important to show to talk about the results of 2023 that financed the cash. We have to talk about sales. So it was the best sales in this sector, as Cito said, sales [indiscernible], and I always say this. And we sold BRL 18.9 billion. It grew 11.2%. So as Cris said, we always produced guidance in our short-term guidance. We complied with this in 2023. So our net sales grew 14.7%. Our FFO came to BRL 562 million. Our EBITDA, BRL 919 million. And several other indicators, and we were the best in the sector and also the best EBITDA margin in the sector. And the margin is very important because it shows the results of the company. And it's important to mention that the state of the art in the delivery of the indicators, which was the work of the team, these 2,200 employees that Joyce talked about. We brought a growing FFO ever since 2019 until 2023. Our FFO grew 84%. And this year, we're closing 2023 with an FFO of BRL 570 million. This FFO allowed deleveraging of BRL 137 million in 2023 so that our net numbers was 1.96. So definitely, this reduced the net debt of BRL 260 million at the end of 2022 and it's BRL 196 million at the end of 2023. And the year 2024, we start that in a very -- with a very positive carryover, what happened in 2023. So talking about the carryover. We talked about this a lot. But the most important thing is that we start with an occupation of 2 basis points better than what we had in 2023. It was 95.1%. And we start the year very strongly with discounts. We closed the discounts 2023, and this is since the smallest level since 2021. And they are at lower levels compared to what we had before the recession of 2015. So definitely, this is very important. And talking about our guidance. I would put the guidance here just to show you. It's important to mention that we started the year very strongly with these 2 things that I talked about. Another metric that is important is talking about the expenses. So we did this in 2023. I talked about this. And this project generated an important reduction of our expenses, the famous G&A. So we're going to take advantage of this in 2024. So we really believe in the guidance of 2024. And this is going -- this guidance is going to follow 4 pillars. So first of all, the continuous optimization of our portfolio. A lot was said about the improvement of the efficiency with regard to occupation, the take rate in terms of renting the leasing spread, especially the main KPI the company has looking at renewals and new locations. And we also talked about this, Cristina and I and the soft guidance we go from 95.1. We're trying to get to 97 at the end of the year, and we're going to be able to see this occupation going up in the second -- in the second half of the year. We're also still working on cost and expenses. And this is work that is done in Iguatemi. We always focus on this, same what we did in 2023. So in 2024, we're going to have less costs and expenses lower than in 2023. That's very important. The monetization of our landbank. As Kayo said, we've been working on it, and he showed this. Over the last few years, our average in terms of selling lands, it brings us about BRL 25 million. So we continue doing that. And also in maintenance of our -- of the breakeven of our retail operations. So we celebrated in the fourth quarter, we achieved what we promised in our retail area. So all of the retail area, it was done. And we're going to see this operation being positive in the next quarters. So looking at this guidance, which is challenging. So EBITDA margin of 82% and 85%, and 75% to 79% in terms of the total EBITDA margin and a growth of 4% to 8%. And today, it is negative. So we have good news to give you. In January, we have already talked about our sales was 9% -- 79%. And now we can already talk about 11% of gains in February compared to January. And until Sunday, I didn't get the Monday number, it's 7% above what we had in 2023. So it shows that we're doing the right thing to reach the guidance that we have. So we're very -- we're doing very well, our cash generation for 2024. And you are experts on this to calculate our FFO. So if you use half of our guidance about the margin and the total EBITDA, you'll know how much our FFO is going to be. So we're very -- doing very well to finance the investments that Kayo and Guido presented. And also -- we also have BRL 110 million to BRL 190 million. And in the investment, we're going to talk about BRL 200 million. And we're still rebuying shares, about BRL 140 million. So we did BRL 40 million in the second half of last year, and we are also buying on a daily basis BRL 340 million, which is what we're using in our generation to bring the payout and buyback for our shareholders, returning the results. So our generation is doing really well. Thank you. And I think this consolidates everything what we think about, everything that we were able to segment during the different panels. And you're able to tie everything together, showing great growth, very sound growth. I just wanted to ask you about the opportunities about mergers and acquisitions, so M&A. So how do you evaluate the future opportunities in this area? It's very important to talk about this. And there were some shareholders who had to talk about allocation of capital. I'm going to do a panel about it because when we talk about allocation of capital, no, let's talk about that. Yes, we're going to do that. But it's a very important aspect in terms of growth. It's not unique. And I said it and Cris said it, I'm going to repeat it. So the use of our assets, the generation of cash, qualification of our mix and growth, all of this gives us organic growth. So I mean, it's definitely an important part of it. And this has to be done. As has already been said, you have to have financial discipline. And we've been doing this throughout our history. So a lot has been said. But today, we have 757 area that can be sold, and 20% of that was added in our portfolio through M&A activities. So we had several operations that started right after the IPO in 2007, and they're there until today. So these are operations that follow the financial discipline that Iguatemi has, bringing results to the investors and to the company. And all of our M&A processes, as Julian showed, we have financial committee and allocation of capital. We have investment criteria what we follow in the M&A operations as well as in the optimization of the profile through monetization of our landbank. And this investment has to be complied with, and we respect this in all of our governance models. Now when we talk about M&A, we have to talk about the track record Iguatemi has. So it's important to highlight, and everybody have seen this, and it was discussed quite a bit, it was JK. So JK, we bought it with a cap rate when we announced it, looking at 12 months before in June of '20, it was a cap rate of 8%. And then January of '23, it was more than 10%. And today, it is an acquisition that's extremely successful and well done in Iguatemi. Just so you know, the growth of revenue of JK over the last 5 years was 14%. So it is a unique asset that was a very good purchase, and to do it the second best in the country. And it's only an [indiscernible] per meter squared, sales per meter squared and profitability per meter squared to our flagship, which is Iguatemi [indiscernible]. And besides JK, we also announced a small acquisition. But it also shows a little bit about our financial diligence. It was the acquisition of Fashion Outlet in November. We bought 10% of it. It gave us control of the mall, about 51%. So there's no workforce set because there's no vacancy, no vacant areas there, 100% allocated and it grows above our average in our portfolio. And a lot of talks about it because I just think what they need to take advantage of the strategy of sales and who started doing recycling of assets. It was Iguatemi who was the first one, the first company to sold a mall was ourselves in 2012 when we saw that Iguatemi Rio did not have -- do not fit into our portfolio anymore. We sold this in 2012 with a cap of 6%, and that's 18% of multiples and it was a great sale. Another example of financial discipline in Iguatemi was in 2019, when we sold assets and we noticed that there was no more fit with the portfolio, no more fit with our administration, Iguatemi sold [ Annapolis and Casillas ]. We sold these 2, and we used the resources from these 2 to improve our portfolio. And we also bought more from Iguatemi [indiscernible] taking the portfolio of EVP. And then we bought a minority share in Iguatemi [indiscernible], which is the best asset in the south of the country and 1 of the 10 best in the country. And this generated more profitability for Iguatemi, improving the portfolio, polishing the portfolio. And Iguatemi Sorocaba at the end of 2023, it got BRL 100 million. So it's very big. And all of our M&A actions, they respect the returns that are allocated. And we also look at the shareholders' view. And we're also talking about returning to the shareholders and the company. So we always look ahead to generate capital, to generate a return for our shareholders as we able to set in the beginning of his speech. I was looking at 5 or 10 years. So in other words, discipline in M&A is everything. We're going to continue looking at this with discipline and with also returns for the shareholders and going with responsibilities. We don't need anything else, right, all this energy and this excitement and the emotions that we were talking about. So I'm going to ask you to continue. But before, I'm going to ask you to give him a round, yes, give him a hand. So now I'm going to provide the President of Iguatemi [indiscernible], Cristina Betts, to sit down with Guido, and we're going to start the Q&A session. Where are my questions? Cristina, please.

Yours is over here. Okay. Your chair here in the middle. Thank you.

Okay. So the first question, and let's see how long we're going to have to ask them. Okay. So Cristina. For a change, the first question is also it wasn't me, it's you on the paper. I'm not the one who did it. Iguatemi women are majority, right?

The numbers, you have to grow even more, okay? Yes. Let's go. I think that's how you have to do it. I'm just going to look at the list of salaries, okay?

No problem, no problem. Okay. You can see that most of us here are women, right? But that's okay. We're already the women here, but we are also gaining as much as you are. So Cristina, when you talk, you said we have 371 stores that were opened in 2023. And that's what Satomi said about the mix strategy. How do you see the qualification talking about the assets in terms of new operations?

Well, thank you for the question. I think Satomi and [indiscernible] talked about this in their presentations. But it is in our DNA, and I think [ Pedro ] and Carlos talked about this. We always have to look at what's new because this is what makes our malls stay ahead, always the desire also that Charles was talking about. And at the end, this has translated into sales. So our daily work has been this, and we have done it consistently, especially we talked a lot about this on the beginning of the recession and then during the pandemic. We thought about making this churn more intense, maybe removing the operations that are already be coming out, right, and repositioning with stores that are -- they have more desire. They have more desire for anything new we wanted to put in insight what the customer was talking about. And all of this seems to be a small movement, but there are many small movements. And then you have the sales result that Guido was talking about. So during 2024 until this year, I talked about a few stores. Satomi talked about a few stores. It's very important for us to continue forever, to continue this movement of always trying to qualify our malls. So this brings news, this brings flow, it brings sales and it brings greater profitability per meter squared. So when we remove the center that we have in Iguatemi Sao Paulo, stores that were there since the beginning of the malls, since '66. And then you put a flagship of Tiffany, the sales per meter squared to generate that. This kind of movement is what we do in all of our malls. So it's like a [indiscernible], it's the first simple hand, people line up at 5:00 in the morning to get into the store. And that Saturday, the mall was great chaos, longer for chaos, yes, the way we like it because there are lots of people going in. And this is what generates the whole buzz and happiness, the excitement of being able to participate. So it is important. We're going to continue doing this. It's part of our routine, and this is what brings an increase in sales and rent and everything.

Okay. So the production brought together a few questions about occupation, the occupation rate, the cost. And so I'm going to allow you to decide who's going to answer and what actions will be implemented to reach this, and what is the contribution of the brands. So you just talked about the luxury brands.

I can start, and Guido, if you can add on to it. So the work, what we saw over the last few years is that sales went up faster than our rent. And this is natural because when we have our rent, our rent is for 5 years. It's a 5-year contract. So every time we sit down to negotiate, there's time involved. So it's not that we renegotiate 100% of the contract every year. No. Obviously, we have the opportunity of having new locations, that's what we call it. [ Sido ] talked a lot about that, about the vacant areas, all the people that leave and the new ones that come in. And we have the renewals, right? The cases that are in there. We're going to continue, and we're going to renegotiate the contract. So every time we have the sale that is growing faster, this is an opportunity for us to look at what we are charging, rent and the basis rent that we have and the breakeven, which is the percentage that we try to bring to so that we always have a minimum standard guarantee then we continue our work, so that we can continuously increase sales. I think it's also important in terms of the space that we have. Charles also talked about it. It's in the occupation rate when we talk about the condominium. And [ Himab ] also talked about the opportunities of reduction and better use of the promotional fund. So when we have a reduction, it's not only the sales that is outpacing, it's also our efficiency work in the other 2 components in the occupation rate. So all of this together opens up the space for [ Sido ] to work in, for his team to work in. And I think that's what we're doing. Did I forget something? Are you going to add something?

I'm going to add a question to that. Yes, I just wanted to add on to that. Can you hear me? Yes. Okay. So no, it's because we gave a soft guard in reinforcing the team, as [ Sido ] said. It's also important to mention that this is based on remuneration according to the KPIs so that we'll be able to work together with the consultants and the whole operational team and these positive spreads in the renewals and new spreads in the new locations -- allocations. So this is daily work that we have trying to improve the stake rate. So we did our planning, our credit planning. And one of the points is to show the part of rent, that we can improve. And this is work that starts or has already started, of course. And in 2024 and 2025, we're going to have good results. Can you add what exactly is going to be done in the short term? And what is the healthy level for that?

For occupation, we're going to go back to the 97%, which is what we're thinking for the end of the year. So this is a standard that is above the historical average that we have between 2015 and 2018. And remember that we had a recession between 2015 and 2017, GDP went down 7%, and all of our operational data was still positive. So going back to '97, that's the only indicator that we have not gone back to according to the numbers in 2014. Because today, as I've already said, our level of discount is already -- the percentage of discount in the rent is at the same level as 2014. I didn't say this. But our delinquency from December, January and February, it's below our level in 2014. So it's a very important level. In January and February, they were interesting months because we had strong sales, 9% and 11%, and the delinquency is the same as in the best month, retail month. And in January, there are 2 rents to pay, right, for the store holders. So this shows our change in the portfolio, as Erica says. Erica is one of our executives, said we exchanged 1,000 store holders in these last few years. So now we are seeing the results. And now we try to make only 2 occupation points, right, only 2 points to get to 97% at the end of the year. So I'd like to understand how you plan to work on your client basis when you talk about the loyalty programs and the proprietary events, and how this can leverage the results of Iguatemi? I think all of the work, the digital work is important for us because Iguatemi is a consumption company, 0it's a real estate company, but also a consumption company. It's a mixture of both. And our heart, I usually say it's a basis -- has a basis of consumption. But different than the consumption place. We have the store holders. So any consumption company has all of the data that it needs to have of the end consumer, but we have the people in the middle there. So when we have our work in the digital world, so we do 365, when we do the deal, when we do one, when we have the collections, we're able to have information about the end customer first hand. So it's very important because we are increasing our knowledge, our granular knowledge of the customer that comes in every day. And why is this important? I'm going to give you an example. So in our second addition of collections, it was knives, cutlery. When we took a look at the 10 biggest point exchangers and gift exchangers, 4 were men. And it's funny because depending on the price you have, you have a greater incidence of women or men, this one was basically men. It was male. And when we looked at the customers, it was not in our -- these -- they were not in our radar. When we talk about our relationship, when we talk about the 0 level, they were just not there. And so who is this person? We have to understand this better. We can offer other services, other products. So there is a way of working. So on our granular database so that you can address our end customer better. So to understand what they want more data for the mix, so that we can understand in terms of qualification. Satomi talks a lot about the journey. It's very important to talk about this journey. And for us to really be able to, obviously, at the end of all of this, be able to increase sales. But not in a forced manner, definitely addressing them better, serving better. And the beneficiary is the store holders. The customer purchase from the store holder because they sell more. So the work that we do together, if we're able to understand better and then get better access to the data, this is very relevant. So we're still giving baby steps. We're starting. I think we are forming an important database. We're forming a team to do this kind of analysis because it is a different competence, different from what we have in the company. But all of this is going to lead us in this journey of having closer relationships. And not only at the top of the pyramid of our consumers, but with all of our consumers. So we have an aspirational basis that is big in Iguatemi. And we want this aspirational basis to be achieved. And for us to, throughout the lifetime of the customer, we can put him up in this pyramid wherever he is.

And the last question is it's a complement. I think it's not the last one, yes. I think we're going to have more. Yes, we have more. But it's about Casa Figueira. But the person wanted to know a little bit more about the existing shopping malls in terms of sustainability certification.

Well, we've been working on this. This is led by Kayo, and we were able to certify our towers in the marketplace as well as in Galleria that was just inaugurated. And the whole district has certified its work that we have been studying. We've been studying the investments related to the certification of all of our assets. It's not easy at 16 units. And it is slow work. We have to identify the certification points, but it's something that is on our agenda. So it's interesting to say that everything that is going to be created, any ABL that is in the portfolio is going to be certified. So in Brasilia, for example, the parts about retrofit and marketplace and Iguatemi Campinas and the Casa Figueira district as well. And just adding on to that, I think we have this in our plate. And we look at our older assets, everything that is new is much easier, right? And what is old, it was built in another year, right, all of those activities. So we are mapping things and everything it takes. And we have this commitment to creating this road map and understanding the movements to be able to justify our assets. Yes, in the report, we're going to talk about this, our targets.

And this last question, it was really done. It's here. It's written by hand. I did not just invent it. It has to do with what you just talked about. And this is a question that I'd like to make as well. Ever since the pandemic, there was a behavioral change in the consumer. And how should this impact the future of the malls and the company?

I think a lot is said about the pandemic, everything changed. I don't know if everything changed. And it accelerated, that's my opinion. Things went faster in their evolution. And we're talking about the people who were not digitized. And I'd play with my mom, my mom is over 70 years old. And if I tell you her age, she's going to kill me. But we started using iFood to order food. And I remember also now, the malls are the end. It's the end of the malls. And the first day that we open the mall with the masks, with -- and carpets, and the first day we have people. The second day and the third day, 1 week after, it was almost normal. So it's part of it. So we're in this. So sure, we can see the operations and work human, right? We want to be there. And the malls are exactly this. So in Iguatemi, we have this thing about enjoying life. And this means more restaurants. This means more places to exercise and [indiscernible] talked about events. And we see when we when we bring a qualified event something different, everybody loves it. They love it because it's something different in their daily life, and they see Barbie and the Food Scores and Gastronomy, and I saw the Champion's beer in the gallery now with a cover of Coldplay, gigantic. Lots of people. It's incredible. And this is enjoying life. And this is what we can provide to all of our customers. So it's intensification of this part and this is part of the trends. So Satomi talked about the trends. We have to understand where the consumer is going and how we're going to translate, where they're going to the things that we do in the mall. So it could be in terms of stores, it could be in terms of event, it could be in terms of design. So we're saying, so who would imagine that we would get Iguatemi Sao Paulo and we'll take it to the parking lot and it would be great. It was closed, right? Everything was completely closed, right? And the wow, it's exactly what we want. And everybody has to come in and say Wow. And I think we didn't have -- we have this acceleration. And it's our duty and it's our purpose to follow this up and provide this for our customers. And I'm going to get data from Satomi. And I'm looking at her, but she gave it to me. So just to talk about the evolution of the mix from 2018 to 2024. In terms of entertainment, there was a growth of 18%. And this is creativity, and this is bringing entertainment inside the mall and also sports clubs. This has to do with health and beauty. We had an increase of 17% in health labs and beauty services, health and beauty, it was 32% increase. And also the part of enjoying life, the restaurants and -- this was something that Satomi talked about, the example of money. So we had a growth of 39%. So we went from 132 operations in 2018 to 183 now in 2024. And this is something that tells us about looking at the trends. So thank you especially for the opportunity of being here. And this is my number 1,402 events. But I've never seen an event that was so well organized, so carefully organized with such a great number of young investors. I can see this. I want to be there. I can see those in their eyes.

So your closing remarks, Cristina?

So I just wanted to stand up for the closing remarks. I'd like to tell a story from a long time ago, I don't remember what year. And we were doing strategic planning and we're doing a summary for everyone in the company. We went to Cinemark, Iguatemi. And I was coming with Carlos. And I said, Carlos, you know what, the best thing in this company is that we're very rationale, very disciplined. I love this rationality in our company. And then he said, "Me, too. It's great. It's wonderful." And then he started talking about strategic planning. He got emotional. He started crying. Cheers. I mean we're just talking about rationality. But I think that's a bit of our company because we do this every day and I was counting how many times we talked about pillars and discipline. And the method, everybody talked about their area. But Claudio actually brought me back to the story that we get emotional as well. And it's important for us to become emotional because at the end of the day, that's what makes our days in the mall different. So we talked about the wow in our company. It's very used having a shopping mall that functionally is great, but it doesn't make people, it doesn't touch people. We want to touch people. And when we do new things, we have new events. Everything that we do is different. People, they get really excited, and we get excited. And that's why we sold that. We are very proud of being part of the company because we love it. We really are in love with what we do.

So anyway, to close this, I would like to, first of all, thank all the company executives who are here when we start talking about the Investor Day. Everybody has to be together. Everybody has to speak and manage this. And look at what Cris is doing to us. They're putting us to talk. Cris, if you know how to do it, you do it live, right? Yes, exactly. But I think we have a spectacular team. And I have the privilege of being together with this team for a long time. It is great to work with everyone. And I say that we spend more time at work than at home. And if we don't like the people we work with, we'll be in trouble. So of course, we're all here together. And I hope that you notice how well we work together. So I'd like to thank our members of the Board that have helped us in this new governance and the Jereissati & family that has also helped us to put everything into practice, and also you to our analysts and investors. We always try to be available for conversation to be together. It's not always 100% possible, but we try. We have been trying. And today, it's an important point for us because it is the -- going back to our commitment of having an Investor Day, of having our management closer to you and to continue always being together, giving as much transparency as possible to everything that we do. So thank you very much. I hope you enjoyed our Investor Day, and we can continue this conversation outside the Investor Day. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]