Kepler Weber S.A. (KEPL3) Earnings Call Transcript & Summary

[Presentation] Kepler Day 2023. Good morning officially. I would like to hear your answers. So, good morning. Well, welcome those here in presence and those also with us, from abroad and [from net]. We're broadcasting from YouTube. You can share the link with your friends club wherever, you can. The leader in post harvest in Latin America. I am Fernando, senior journalist and will be presenting today. And today, we'll conduct this talk with our executives. So they can give you the important pieces of information on 1 more year of Kepler's. Before I start, I would like to say you can place the disclaimer in our screen. So that we can make clear that the figures presented. No, I'm the one to present the disclaimer. So just a second, the presented figures they are based on current data. So it's very important for you to have access to the pieces of information understanding. With this info already informed, I would like to talk with the attendees, so I can understand what we are looking regarding information. I like this moment so we can look people, they look through their mobile, not to be addressed by me, but I'm using and we are working. They say she is working a lot. So I'm going to [indiscernible], blame your peer afterwards. [indiscernible] what's your company?

[Globo].

What is the most important information you're looking today in this event? What is important for you to know that you want to know from the executives side.

I would like to know the differential. And marginally, because it's this company that will sell the bread basket and not a competitor.

Well, this is an important question for the Q&A. So exercising pressure, now going to this side of the audience. So what's your name?

Matthews.

you come from where?

Logos Capital.

And Matthews, what type of information you're looking for now?

Well, I would like to obtain information regarding sustainability of the business and regarding the company's growth. What makes it difference from its own competitors?

Excellent Matthews. So now we will -- later we will talk more about it. And I'd like to inform you this QR code seen on the screen point your mobile camera to the QR code, and it will open a tab of Q&A. So you can you sent it out there through this resource, and I will get it on my mobile and pass through to the executives. But of course, your participation is very important. We will take you the mic so you can share your doubts with us live. Those from us from far away, you also have a QR code and access and post your questions. Therefore, we will post them here Also, just two words to record this event today. They are on our resilience, consistency and growth. These three words, they have guided the work of Kepler Weber during the last years. This company that will celebrate in 2025, 100 years -- so you will understand further the size of the sturdiness that it is searching for, especially, we want to talk about consistency in the sustainable development, consistency regarding good governance in team. How they treat their own clients and also the development of it's collaborate. So soon, we will show you those who consume pieces of equipment and services provided by Kepler and also that are the life of this company. So all this will be known by you during the event. And also to talk about a new moment that Kepler is experiencing since last July because it's action. It's shares, I'm sorry, are being traded in the new market. I would like to invite you to join me on stage Julio Toledo Piza, Chairman of Kepler Weber. So Julio. Welcome. It's a pleasure to have you here with us. You have the floor, Julio.

So, it's a pleasure to have you here and to be here those with us through the Internet. So I congratulate you all and thank you all to be with us here today, especially because this is my first job was [auxiliar] during the trading floor, and that building 100 meters for here, 16 year we traded cattle and coffee, enough BMS and BMF under this building. The trading plateau for was here beside us for agricultural products. And then this more than 35 years. So we reached this moment. We're seeing the agribusiness company being part of the capital market, so the amount of individuals interested in investors of the highest level to further understand more of Kepler in this sector. So I as a agronomist and an engineer, I feel honored. So it's very special to be here and see what the agribusiness, the momentum has reached Kepler Weber also. And to be in this place. So I'm very touched on being here today and sharing all this with you. But going back to Kepler. kepler went public in 1980 (sic) 1925. It's almost 100 years old company. I cannot think about the company of this sector, agribusiness to have such a long history on the market in Brazil being here helping the sector and connecting agribusiness with the city since 1980. And now during this special moment, the company not only went through an interesting change during the last years, and we will further address the later on and share with you. But now the peak of this during last week migration to the new market that symbolizes different things. The first interesting thing was that we studied the subject of going to the marketplace. We started to look inside. What should we do in-house to change and meet the requirements. We found almost anything. Very few things we had to do, and the company was already ready. So we didn't have to change. It was the company for the new market. We just have to inform the market and then our protocols together with [BNDES], a very interesting process for us, in fact. And during this process of migration to crown this change during the last 5 years during the operational, commercial and financial areas, people will address later, but governance included. The company today is a corporation, and it has referenced shareholders that are very important, but don't have a controlling shareholder. And the process we did during the last 12 months during this transition to corporation was a successful case. So we won three third-parties consultants, and we talk with the shareholders on the basis, understanding setting up a process of forming the new group for the Board. So syndicating the process and strategies of the company, culminating with the election a board -- Advisory Board, very special with very skilled people. So this -- so we are in the new market for Kepler it's beyond this. We are talking about transformation for the governance model, which is very updated, and we will take the company for the next steps. During this fantastic journey that has been during the last 5 years that we understand what we would keep on for a very long time. So I would like to thank you all. Thank you for being here. I'd let hear now the executives of the operation. There's a lot of good things to tell you.

Julio Piza, thank you very much. I will call you back later to answer the questions that will be sent from the audience. And Kepler is working with high efficiency and every thing that agribusiness works on [farm], the agribusiness, ports and terminals. When we talk about food security, we have the DNA of Kepler behind us. The food securities of Brazil and also outside Brazil because much of what is produced in Brazilian crops is exported to other countries. So now we're talking about investment thesis, and we will call now Piero Abbondi, the CEO of Kepler Weber. Welcome, Piero.

Good morning, everyone. It's a pleasure to be here with you today. People online, welcome. It's a pleasure to be here and share a little bit of our trajectory over this past year. Kepler has delivered excellent results this year. And over the past years, and this will become the second best year of our history. This is a robust, sustainable company. And over the next hour, we will discuss and present what we are doing. Now my objective is to show you the pillars of the investment thesis of this development of the company and we have three main pillars. One is the demand for -- the global demand for food. And the second is Brazil agriculture power. So Brazil is more and more great supplier of this global demand. And last, logistics and infrastructure where Brazil is positioned. So we have adapt this in Kepler goes right there. So we are not investing in logistics. We are part of the logistics, the post-harvest logistics and grain logistics and needs Kepler to solve that problem. So we have these three pillars. We will advance and talk about each one of them, global demand increase of middle-class, and higher consumption of protein. So these are the drivers of growth worldwide. So let's talk about growth in population. It was BRL 3 billion to BRL 8 billion. And this demand in food. So this is a global trend, of course, and this population. However, has increased their income and has become more and more located in the cities. So we can see the growth of the urban population in relation to the rural population. And we talk about rural exodus. This is not so appropriate, but what has happened from the last century in industrialized countries and is happening now in other countries is that we have an increase of productivity in the field. The population is migrating to more qualified jobs in the city. So this renders the possibility to have more income and have more quality food so this is the global chain of supply, and this is where Brazil is located. Just to give you an example, we in '23, we estimate that 3 million people will be part of the middle class. So more poor people will migrate to the middle class. This has happened in the United States and Europe, less in the first part of the century and China is going now and in Brazil is also passing through this process. So the increase of income will increase the consumption of protein, of meat. So people will start to consume a higher-quality product. And we call this in Brazil. This as [indiscernible]. This is a Portuguese word, which is the chicken, the meat or the pork. This is what we call the [indiscernible]. So people climb on the protein chain and this we have 70 million tons that we had in the 60s. Now we have 354 million in 2023. We have here the consumption in different countries. The U.S.A. has grown more than 20%. Brazil has quadrupled its consumption, not to mention China. We can see this quite clearly here, 500 million people entering the wealthiest population. We have other countries in Asia as well that will go the same path. Indonesia had 4 kilos and now, they have now 18. So this is demand for food is increasing population. Also, results in the increase of the consumption of protein and in order to produce this protein, we have the feed, which is soybean and corn. This is the base of the growth. And finally, this growth trend in population, we are now at 8 billion and World Bank estimates 8.5 billion in 2030. So this will increase. This is an increasing population, it will increase more slowly, but will continue to grow. And this is where Brazil is located. We are going now to the second thesis. The first one was a global history. And now let's go to the second pillar. This is Brazil. Brazil has become one of the biggest suppliers. And this is where things are happening in the world. We are here showing the main change, and we have Brazil is first or second or third in the main change. We are the biggest and the first soybean producer more than 50% of the world trade and so on and so forth. I will not detail everyone, but and from these 12 and most important chains, Kepler is present in 10 of them. We are present in all of these first time. And no doubt, Brazil has an important role in the food role in the world, and we will continue to have that role. So this shows clearly over the past 10 years, the average growth of Brazil -- in the world, sorry. Brazil has grown 5.50%, but we see here the main producers in the world, Argentina 1.9%, the U.S.A. 0.6%. Europe has decreased. Ukraine and Russia they are important players also decreased, but Russia has here 3.3%. So Brazil is the one that is capturing this great opportunity in agriculture. We have this popular culture. And when we see this, we have the countryside of Brazil is surfing the way. This is where things are happening. And this has a result in the production of grains over the past 3 years. We can also have a 10, 30 years, we will always have 5 and so percent. And over the last year, we have 6.7% and 3% of planted area. And this we are gaining productivity yield per planted area. And Kepler is located right here. We are talking about grains like black beans and [Lentil] beans and rice and also soybean and corn. And this is why Brazil has become such a power in agriculture. We can see it in black, the growth of the first harvest of soybeans. We have grown from 40 over the 30 years to 160. And the second is the biggest one, the second harvest. We call this the in between harvest because it was a small one, there was compared and now corn is becoming the primary harvest in Brazil. And we see many vectors of growth planting in the Cerrado region was not possible in the past. But now in Embrapa, the Brazilian agriculture technology company, has helped the farmers to plant in the surrounding and what regulates the planting here, Brazil is the rain season, which is 6 months long. And according to this rain season, we have different varieties of soybean that we can capture the first and the second crop. This is the only country in the world that has this type of harvest two crop characteristic and no other country has this. And this is the power that we have here in Brazil. We have a location, and we have captured yields in investments in crops and the company Embrapa, that is allowing for this development to happen. And then, I will talk about the third pillar. Kepler is part of the logistics, we have a deficit in storage, and we have difficulty in distributing this harvest. So this is the defecit of storage that we have here in Brazil, 129 million tons. So we have this deficit here in Brazil. So this is a calculation here. Our industry, Kepler and competitors have per year -- they add 6 million static tons of capacity. And in order to close that gap, we would have 20 years. So 400 million tones is not when it is going to happen. And we will have this number growing up, so Bernardo will talk more about the numbers. So we will have another 120 million. So this is not 10 years, it will be 20 years. In order to close that gap in 10 years, I will quote Juscelino Kubitschek. So this is -- will be 40 years in 10 -- it is a 40-year and 10 years plan. So this is not the only question. Let's go deeper in this in detail because this year, we have, for the first time, the first crop, we do not have a static capacity to restore the entire first crop. That means that I have the entire first crop in storage, and I will start the second one. So what do I do? We have here what the media, the social media also say about this. Then we have products that are stored in open air. So we have a loss of quality, loss of yields and it's different because in the silo in the bin, it's all automatic. We have the tractor, the trucks. I have been in a farm in the state of Mato Grosso and in some of them, the deficit of storage would lead this farms to put this products in a place that would decrease their quality. We were here we rehearsing this, but we are going backwards, we are starting to put products on bags again. So this is going backwards. So this is loss of yield. We have also the problem with freight, lack of trucks. So we will be storing this product in trucks. And this is very expensive. I was with a farmer, and it's not that you want to sell cheap. There is no truck to distribute this product. So this is the economic problem. And for the first time, since '24, 19 years now, we have significant deficit in the price of soybean. So we have a significant discounts. Throughout the years, there were small, but now we have now a big discount, and this is money that is being lost, farmers are losing money. So it comes back to our return to the project considering the return on investments. So another reason for the reason to invest. Not to mention food security because this is not price as well. So we will have an acute volatility of products. So we can have this level of price more stable now. And where is this deficit now? Now for region, the South region has a little deficit. The Midwest also and it will have a storage to distribute to the big consumption places into the ports, which is difficult and also in the Northeast, a smaller defiicit, but this is a region that is growing. In terms of where this deficit is located. If we compare to other big producing countries, they are -- they have more than 50% of the capacity in the farm. So they harvest and put it on storage. So Brazil, we have a huge investment to be made to make sure that the grains stay in the origin and then will be distributed to the consumption. And finally, Kepler is located an entire chain from harvest to the port, which is a long way and consumption capital is present in all the segments. And the most beautiful thing here to notice is that we have different drivers that give us sustainability. We are more robust. When we talk about sourcing the farmer, we are close to the producers, the farmers, the profitability of the corn, of the soybean. So when we go here to ports and terminals, we have many investments to be made in roads, water transportation, and this is about exports. And also about consumption, we're talking about feed. We talk about meat. We talk about oil. This is consumption related. And this puts our robustness management in the right place because we manage different risks and different drivers. And finally, we have been investing in big growth vector, and we're delivering this. In addition to the growth of the market, which is the digital market that goes through all this segments in addition to our core business, which is storage, plant management, which will leverage our business, there are other territories like traceability. Traceability is becoming more and more important, and we are an important link of the chain. So we have this harvesting machines. We have 17,000 to 18,000 plants and we go through all this consumption. And with the digital systems, we can also serve this territory as there are others like insurance guarantees, which we will explore in the future of our digital evolution. Just to recap, global demand in Brazil agriculture and logistics infrastructure and Kepler is well positioned in this sector.

Piero, thank you. Piero will be available to Q&A later. We have some questions coming in from people that are participating. So applause to Piero. Thank you very much. Piero mentioned the direct planting, so we cannot remove the coverage of the soil, so we allow that foliage to stay in the soil to leverage the productivity that will be coming back. So I will talk about the growth factors. I have an interesting list here. We have market leadership, governance, acknowledgement from customers, we are top of mind in the segment for 22 years, according to rural magazine. And there is a word that we were talking about a lot, will be the super [decade]. And the person who will talk about this is Bernardo Nogueira, Commercial Officer of Kepler. The floor is yours.

It's a pleasure to have you here, satisfaction to be here. And talk about the presentation here. I will show this slide again about the perspectives and the history. The first thing that this graph shows is how the capacity is not following the production speed. So it's clear in '05, 2000, when we started '10, installed capacities be below our production. So I would like to call your attention for the recent moment '16, how it was done in '16 as Piero mentioned, the farmer would harvest soybeans, store it, then 2, 3 months to be traded and then he would receive corn. Okay. Up to this moment, as Piero mentioned, the rate of return of storage 6, 7 years. But when we join us, status, as we saw here in '23, where during the first crop, it overcome the static capability, and it have a [indiscernible] all the points regarding fleet, collapse of the infrastructure. And this point is important because corn August, September. It's far from the idea, but you can post because not too much rain, cold, but soybeans is more sensitive. So you cannot do in January because you have too much rain and heat. And this will result in all this problems. And one additional point when we or the grower notice this negative premium. What would you do? I will hold back my soybean to have the positive premium. But they hold back into cost [September] core habitat. So it's a snowball. And when we look, if this happened here with 320 million tonnes. We passed, there was a leap here when we look at '16 to date. We say that the storage, it was very necessary for the chain. Always as a grower, cooperative. It was needed the storage, and it was necessary for critical and I stress this reflects on the payback that was from 7 to 3 years, Some regions in the South or in Para 3 years. Well, now looking forward, the consensus of experts when we look consulting service for projection and budgeting. They say the [consensus] 500 million tons in 2023 repeating what happened during the last 10 years. And so it's 2033. So we keep on with the capacity adding, the capacity of the last 10 years doing a projection of this. We live from a critical scenario, we go for absolute collapse. Million tons of soybean without having where to store it generating more losses under ROI from it will go to 6 months. And doing projection looking forward, when we talk about super decade, you like when we talk about super decade and it attracts some views by, during the year of Brazil, he uses this. So this super decade for storage. Likewise, the group will be tight and negative in stress, but it was not to worsen, we have to more than double the capacity -- store capacity yearly. Therefore, this year reflects a bit our optimism on an overall with the storage segment, especially with cattle. Now looking Kepler has this absolute leadership position in the market today. It is 1/3 approximately or a second size in the second place. So we are top of mind the longest top of mind company in the business. So it's a fantastic place to be. I would like to share with you [Paulo] that beauty, but who guarantees that you will browse this wave on the super decade? How you can guarantee you will be surfing this wave and be in a leadership position and strengthening during the last 10 years. So a bit of what I want to share with you. It starts with the client. And looking it, we have 15,000 active clients in our relationship. We do the business with 4,000 clients in 2022. In 2023, we have a growth of clients served in 10%. This is the outcome of actually going after the market strategy. And the premium here talk 22, year, what the prizes we were awarded in the Rural Magazine Award and 36 times the top of mind for the publication [Granj]. So the clients, we will take those clients that visit during the first semester of 2023. So the company is listed here. They were visiting our plant's distribution centers this year. And Obviously, they are very important clients and also reflecting an agronomist like [indiscernible]. When I look at this list, I say, well, [indiscernible] and all the cooperatives [indiscernible] and [indiscernible], they are the most competitive companies worldwide. So they are either exclusive or very close to it with Kepler. When we talk about company's resilience, you have strong resilient clients that don't depend on public policy. They capture resources internationally why so it's pungent clients. So we are with them in this urgency. So also for this 100, the biggest companies of the agribusiness in Brazil. It's almost 10% of the GDP in Brazil. This is the size that we're talking about our clients. So now talking briefly, I would like to earmark 3 minutes for clients to say why they choose Kepler here. Equipment quality, durability, engineering, which is fantastic. We hear a lot about the punctuality. We're very on time. It's almost like an airline company of business. You have the crop arriving to the trading the crop, you must be ready for the 15th December, and that's it. They believe and they trust us we will deliver on time. So also this closeness, the stores of [cities]. They would be close to clients. We work in remote areas of Brazil. So Maranhao, north bounds depending from south of Sao Paulo, Parana, it's not feasible. You must be there offering technical assistance. But before, better than me saying , I quote three clients that will talk with you [Inpasa], which one of the biggest corn ethanol processes. So we have also Copasul the biggest corp of Mato Grosso do Sul. These will be three clients. [Presentation]

Very nice to see this. One of the things, I like to do is go to the field and listen client. I have 20 years' professional history. Nothing is compared to what Kepler has with its relationship with clients, we are close, we are fun and they trust us. It's something very special. Now talking about clients joining the Kepler's team, and I think it's important to see the outlook with more than 473 works delivered in 2022 and all starts with the commercial relationship, visits and understanding what clients need a fantastic team from [Raiani] up there with 23 years up to [Wanderley] with 52 years with Kepler. So, diversity, experience we added in this 112 team members, so many years of storage, very experienced understanding the client and a long-lasting relationship. So it's -- there are years of experience in storage. So it's a relationship that of trust that we have. So what they highly engaged teams less than 1.5% of those that left us during 2022. So that faithful engaged team. And then we have the engineering teams, very expert professionals, more than 100 engineers that sturdiness to the project, it was mentioned. Now going through the plant [indiscernible] talk a bit about the team and the plant, a mindset of development, ongoing improvement, Kaizen, all this again we will address. Up to the setup of those silos storage, it had to be set up. It's just like a legal, 600,000 pieces of standard unit set up on the field with partners, builders and they follow up to guarantee with the quality that we mentioned, and we deem as important. And finally, 1,780, approximately 17000 years in storage with a very engaged team, and improvement of the great place to work saying that Kepler, its an excellent place to work certified in 2023, the base having motivated, engaged team, committed with what we have and do reflect in happy customers and clients as shown in the previous PowerPoint. And when -- one second. The film now we will show you the process of this relationship with clients from commercial project implementation, so Diego is the director [implementation], head in the commercial sector. So, Diego. [Presentation]

Very well -- so moving forward to our clients, so the team is catering for these clients. And the last point of my presentation. It's about the development and evolution of Kepler. We will be 100 years old in 2025, and we are ongoing, developing, growing and so we talk about our distribution centers and the closeness of. We started with one. Now it's 8, and we will keep on growing close to clients, delivering that [spare part] when clients need on time. It's -- we also call development centers. So we are offering training for labor of our clients there. And this is a huge added value because it's a problem for many in Brazil. Another point that Diego mentioned, which is the development of exclusive builders. So ever-evolving Kepler journey with more than 44 today with 1,500 individuals working to guarantee on-time safety when we deliver work, a strategical development very important. So an example of marketing, which is digital to access clients digitally why so they come. And here, we're talking about business generated BRL 8 million -- BRL 264 million last year. This year with BRL 458 million of generated business that entered digitally wise. And this is important for two reasons. The first one is coverage. Today, we have -- we participate of 70% business in storage in Brazil, we are part with a strong digital presence, food for thought in a good sense. Digitally wise, we can increase this. And we see here the figures and the second point is efficiency. The commercial areas that they receive a lead from a client, from a digital bit we can do more with less. So the cost of accessing clients with this is reduced. And the next point is connected units and between backets talking about this evolution that did something out of this world. And for me, one of the most important things happening in our segment today, especially for Kepler. So we have connected units strategy. We started in '09, we moved forward, and we had this leap in 2023 with the acquisition of Procer, and we lead for 1000 units connected. And here, a parallel with like a physician diagnoses, you go to the physician. He would hit your knee, do an x-ray. But today, many Apple Watch monitoring, sleep, walking, so this intelligence that it brings. This is the development we see on the storage segment from the '50, '60, '70 and joining the 21st century in full speed. Now talking a bit what we see. These are the 1,700 connected units. Yesterday, we were talking with [indiscernible] is where production in Brazil takes place to see the failure in, so we have Pantanal, Mato Grosso do Sul, where the farming happened. And we have connected units and the value of this is and then everything starts, which is the core of our business of this 170,000 units is to help customers to lose less to in excess of dry in or in excess of humidity. So the care with the grain. So these units help us to take care of their safe of the production. The second point that has been developed more analog and now and according to our world map schedule for digital development is to have a predictive sales. So if I have 1,700 units, and I realized that 200 of them are full so these are the guys that I will call to offer an expansion. So it's like Gmail. So if you write something on the Internet, you will receive an e-mail on that. And here, it's remote diagnostics. We have a concentration of heating many storage bins. And maybe this is due to the cleaning of the green. Maybe we can provide training to improve the cleaning process not to be result in this heat. So this is predictive diagnosis. And the fourth which is e-commerce spare parts. So how many tons have been through a certain unit. So we have wear and tear of parts. It's like a car. So we do not open the hood of a car anymore to diagnose this. We have all the equipment. And we can do this by e-commerce very efficiently. And last, we talk about data. We have some arrangements and discussions going on. When we have our production -- our yield is known. We compared to the past, the soybean, the corn, if we can work this in a smart way protecting all the data protection loss and confidentiality, we still have value to create. Transparency is important as well, and this can increase the float of the financial industry and et cetera. Let's get back here on the slide. So this is what I want to share with you. This is another video to understand, per se, we had an acquisition in March. We have here Eduardo and Murilo, 2 of 3 shareholders of Procer and they will explain to us their day-to-day activities.

Procer was literally the result of a dream. In 2011, I had the dream of this company to operate the area of grand storage management with software and hardware technology to manage units. Procer solutions are mainly focused on monitoring and controlling the grains that are stored in the units through a system that measures the temperature and the conditions of the grain and provides us with the best conditions for the quality to be preserved.

Talking about the synergies between Kepler and Procer is this because both companies are market leaders to provide full-fledged solution to the customer offer technological machines and software. So we have developed a piece of equipment that has a software interface. And the purpose here is to create profitability, generate return for our customers.

And one of the main pillars of our company is the vision of advisory grain storage service, which is customer success that we call. So we have a team that is specialized in the monitoring on the grain that is going closely with the customer to identify risky situations and the best practice for their storage solutions and to keep the quality for as long as possible. And this strengthens the principles of our company, which is to take care of the customers' grain as if you were ours.

So here just to conclude here that this is the summary of what we have talked here. So clearly, this is a super decade for the agri business and for storage as well. And we are confident that we will keep this leading position, and we will strengthen this leading position. So this is the 3 pillars to have our customers served, have an engaged and efficient team and last business that is in constant evolution. Applause to Bernardo Nogueira, Commercial Officer.

So let's go to the next slide. We talked about the investment basis, and why we talk about super decade and how Kepler is preparing for this. We have the QR code for questions and we are having 3 other officers to provide important data for us. I would like to hear from the audience here if we have any questions for our executives. We'll have a question from the audience here. And then we will also take a look at the questions that are arriving from remote locations.

So let me go there and our officers get here. [indiscernible] Piero Abbondi, will have a panel with these people, Bernardo Nogueira, Paulo Polezi, which is the CFO and Fabiano Schneider product and Industrial Officer. So you are all invited to come to the stage. So let me go up there, so you have the question there. Sorry. excuse me here. So let's go there. What is your name?

My name is Erica. I'm an individual investor. So please pose your question. My question is specifically to Bernardo regarding the search of the company should reduce this services and open these distribution centers. Services is clear to me, but I want to understand specifically distribution center for parts. I have taken a look in the parts that are available online. I am not an engineer, but you correct me if I'm wrong, but there are parts that I don't see any replacements. There are specific parts there. So we go from a distribution center in 2017 to 8 now. So I want to understand before you have distribution center, where would the customer get that part. So the income will increase if you have more distribution centers. I know that these are expensive to build these distribution centers. And I want to know about the specific part. And I also see that there are other parts that you can get somewhere else, like bearings, pumps, electric motors and so on a software. So how can you improve this? And how increasing the distribution centers will improve your efficiency? because it will be easier for customers to get them, right?

It's an excellent question. It is a constant concern that we have to see where the distribution centers are located. I will be objective in my answer. Some of our parts are specific of Kepler and some others we can use in other units. But we also have 50% of the installed parts in Brazil is Keplers. So people would get the parts in Panambi. It would take 3 days to deliver, to ship it or they would go to a local workshop to adapt that part. So this is the first point. When we look to a distribution center, we have a map of Brazil with all the storage units, so we can identify the demand of units in order to establish the distribution center. So we have a perimeter of 5 or 6 hours to -- for the client to receive the part. So this is the rationale. Regarding costs, the concern is the cost effectiveness, and we are looking to this with attention and soon we will provide information on this. Kepler has the privilege of being the central point. So the central place where you get everything. So when you think about post harvest, we will think about Kepler, the main structure, and then you go to accessories like [indiscernible] and other aspects of the unit. So we are starting discussions with these other accessories that make sense to customers, so they can think of one place to go so they can share their costs and we reduce our cost to access the customer to make our operations even more efficient.

I would like to make a comment Piero, if you allow me. So these are exclusive parts, as you mentioned. Yes, but relatively because there is a parallel market. If you see the car automakers, they have their own parts, but -- they also have the parallel market. So if we don't do the part someone else would do this part. So they will copy locally and do this. And what we are trying to do is bring this demand to us. And for specific parts, we want to increase the resale. So it's important to think of the parallel market.

And also, we have a distribution center with 2 main strategies. One is to capture this market of parts. And the other is not important to set a flag because we had a low coverage there in Paragominas city there, and we increased our sales in that place. So we have new negotiations in Sorriso, [indiscernible]. These are cities in Brazil. And we have negotiations that we'll open a distribution center there in your city. I will not give you a discount, but you can save on the freight.

Another question from the audience.

My name is Charles. I am from the HB Capital. And I want to talk about the commercial presentation. I would like to understand the strategic planning logic. How you understand new markets. The acquisition of Procer may have started on an interesting process at Weber monitoring of the storage being information that is important for the financial market. So do you have these conversations internally as a new market. And we also have 3 [ Stentos ]. It's a company that you have a partnership. So is that something that is in the company agenda?

Yes. I will answer. It's an excellent question. And we are working on the next cycle. So if we look over the past 5 years, we had worked on sustainability and we have delivered excellent results to build a robust company. So we have -- where is the growth? So we have clear vectors. The first is market. It's an absurd potential market, and it's up to us to transform this market into demand, like investment turns storage bins or for rental and many things. And the second vector is added value equipment for post harbor operations. For the downstream chain, we go closer to consumption, which is different from the view of the consumer because consumers used to the crop. So we have value added to many types of beans like coffee, improvement of many other grains because we have machines that can be introduced in our portfolio. An example, we acquired Seletron, a company and a brand and also their projects, and we are now selling. It's not that we are doing a business case. I think we sell BRL 20 million this year because these are grain selecting digital equipment. So we have a 360 photo. So if the seed is regular or 2 green, we take it out. So we are advancing on this digital. This is not about form or color. We will also have oil content, protein content. We will measure this. So we have the platform and we would introduce it. And last, the digital. Yes, we are looking into growth opportunities, organic internal projects and also inorganic to acquire companies that will increase our speed in this process. Procer was one and there are others that we are considering. We have meeting of the Board coming soon to define the next steps for the next 3 years and to have a good growth over the next years.

Your name, please? Pose your question, please.

My name is Shin from [ Trigo ]. I was curious about Bernard what you said about digital marketing. I want to understand more about the leads. I thought it was interesting about gathering customer. So maybe we have the idea that the agribusiness is not digital. So I want to understand the digital leaders in this marketing strategy to have more customers decreasing costs and how you can decrease costs by having digital customers.

Yes, we are in love with this object. So I want to talk about this. We can talk -- it's a summary, but we can talk about this later if you want. So we have 15,000 customers in our databases, and we are evolving on the organization of this data basis in order to have a constant relationship with this customer. And until 2022, we will not make a user messages sent to customers to potential customers, direct customers, the moments of the harvest, the PCA. So we engaged with the customer -- it's important because we want to be seen and to be remembered by the entire team. And again, with a significant information and proactively. So this is a good evolution, and I'm so happy because in 2022, we also entered [ the profile, the ore. ] We are the only storage company in the organ, which is the fidelity tool, with more than 100,000 farmers. So this is the idea to be where the customer is working proactively and synchronized with their lives. So if you have a crop, soybean to be synchronized with these customers.

I have a question on marketing now by Gustavo Pushkin. What is the business strategy to convince farmers to invest in storage bins?

Nothing better when they feel on their pockets. And I mentioned now -- we went from a situation where storage was necessary and now it's critical. And in practice, what we are saying is that farmer would come to us, let's send to the corporate. So the corporate was saying, no, I don't have any storage place anymore. So -- they have -- farmers have a list of priorities to buy -- the neighbor is the first priority, -- and then you go down the list. And then the last would be to buy an apartment in the beach. And in the middle, you see storage. As we noticed, the demand that we have this type of thing has increased. So storage is going up the level. So our work is to be present, to be near and to make this process as best as possible.

Now one more question on recalling by the end of the next 2 presentation by Paulo and Fabiano. We will have a round of talks. If you cannot pose your question now, not a problem. We will have more time for this. So what's your name, please.

Well, good morning, everyone. Welcome. Congratulations for the event. You showed during the presentation in a map with static capacity by region. Could you address further, how do you see the demand by region, especially on the Midwest and South. And do you feel any impact to El Nino was it taken into account?

Well, we'll start and ask the help from the -- those in the know here. That map is fantastic is Brazil's agricultural sector. 70% of it's 20, 30 years ago, Parana Grande do Sul and it went upwards and Kepler, likewise, in 2022, Mato Grosso was the biggest date for Kepler Weber first time ever. So we are following the development of and talk about climate factors. When we think about Brazilians of a company, we leaped from in the category becomes more -- becoming more resilient due to this increase lining devastated Paraná, Grande do Sul during the last years with drought, very expressive. And it not affect our sales because we had a mitigation in the North of Brazil Mato Grosso and so forth. Now answering your question regard El Nino. El Nino traditionally, it brings a lot of rainfall to the South of [indiscernible] we even saw now this last weekend and a period or more drought by and we have to pay more attention. And Mato Grosso does not interfere that much, a bit more rainfall, but it's not too big difference. So thinking about perhaps sales of next year, we will see growers more contracted and in the northern speed up in the south, the resilience because we have the models shared amongst different baskets in Brazil. We are into Maranhao, Tocantins, Piaui and Bahia by especially reach where the farmers and agri source develop in this region. The next one [indiscernible] so it's Matopiba.

So Glen, Please take the floor.

Well, when you mentioned the quality of kepler reflecting this in the price because there's a premium for quality, right? And dozens of storage concentrating in small and medium produces how can you convince the small and medium to buy Kepler with a higher premium, higher price compared to competitors.

I start, then you jump in, okay? Well, I just like to get the last question stressing PC. PC record with BRL 6 billion. So we have seen that in spite of being more stock at the beginning of the year, will plan is coming in the grow is more enthusiastic and willing to be in all regions. And go specifically why producer why this small producer will buy Kepler? Well, let's think about 2 segments. One of the cooperative industry agribusinesses that buy more professionally wise where they will go after Bernard with engineering and procurement areas, supply, classic business and business. As for rural also quality, but a lot of reputation referral by the brand, the name and the story goes. And I would like to talk about Kepler history. If we started inland Grand Northwest area, where we had the first commercial soybean crop. From then also Brazil agricultures had some interesting factors, historical ones in [indiscernible] was a crop land with German, Italian growers that came to Brazil and has grown a bit the family. So with 7 hectares, they cannot keep up their family, so they went to Parana, Mato Grosso, Mapitoba, so [indiscernible]. So this is CPG. In addition, now those who were born in the [indiscernible] call us, that's the center. So we have so many CPG Mato Grosso, because they went North Bound. So we have rural through the -- they had a grand parents -- my grandparent both Kepler. So we top of mind 23 years was due to this. So this is a brand benchmark. Now we have to keep brand building and deliverables, rural growers. The thing they do is plant, it's serves cropping. It's not civil works and set up the plant and operate. We must help these farmers to do this. Good deliverables and advantage that they clear notice, we will keep our competitive edge that we have today regarding our competitors that answers a bit the question of this morning. How do you think facing competitors. It's an answer how we want to move forward during the next years and keep in fact, moving forward. And with technology and product Fabriano Schneider would come to talk a bit it was -- it's part of the presentation.

We have time for one more question this side. Please, your name from where are you.

Well, good morning, Carol of Banco Safra. First, congratulations for the event, very important for us to be part of this time and the next decade, the super decades. So I would like to further understand, I know in Brazil, we see in fact that we will have lots of work to do to get a payback. So we must increase our storage capacity. But what's your expectation regarding the foreign market. Today, you have a stake more than 50 countries, a huge market share in Latin America. So can you expect about this market please.

Well, fantastic Carol. I say normally that we have a focused interest in the foreign market, and we foster also the accountable of this area. We have a management department -- and I say it's the most difficult work between Kepler because the merging market so prudent, it's difficult to look at work in Indonesia, Africa. So it is truly a challenge for the organization, but we have a view there. We are Latin American leads, Paraguay, Uruguay, absolute leadership of Kepler and also process units connected throughout Latin America, important to stress this. And also, we did some investments this in Africa. We are attending -- we had trips, trade fairs to enroll and the agricultural region of Africa. And we are paying attention acting strongly on the international business because it's one more basket. We say Brazil, 2 baskets, North and South regions with different business, always thinking about resilience and its international business is an important part of all this rule.

Before going to the next segment, I would like to share with you a bit about my experience during the last 15 years and the investors what they say and traded companies, so most segments of the agri business. I doubt that always is mentioned, it's about the cycle, especially a company like capital goods. There's a part of investors when the buying at the high and what type company afterwards. It is apprehensive. It's natural. So sharing with you how I see this in a nutshell. Well, first, Kepler has this challenge. We are the only company of the sector that's traded in the stock exchange, so it's good. If you say the banks, you can have 15 to buy. But storage, it's just Kepler. We're the only one. So share with you how we see things and perhaps it's easier for you to think about investing in Kepler last year. And when we look last year, Kepler had violent cycles of ups and downs and reach also with a request with composition with creditors in, so most of this group in the company management in doing 2007 and 2008 and there are several things that happen, how to become more resilient. So demand point of [indiscernible],everybody heard it. The previous deductions throughout the year seen, showed the importance of storage and favors the payback. So demand seems to be strong as added. And microtrends in micro corn ethanol that's growing sky rocking. It multiplies the need of storage because the corn ethanol plant runs throughout the year and access of the -- on the low lens only in September. So they have to have invented the whole year. So change a bit dynamics of the market with more granularity. On the demand side, it were quite safe. No, not thinking about demand, which is exogenenous of the company. When we think about inside of company, several initiatives during the last 5, 6 years. That takes us to a very different situation from industrial with Fabian with processes, manufacturing reduction -- reducing manufacturing cost making work capable dealing with market by rate and fixed cost efficiency use, so drop in volumes are better absorbed by the company. And then you have in the commercial area, a segmentation, which is more precise regarding clients. So if we look with all the uncertainties and doubts regarding elections last semester, it was clear that this was year, we started with producers that were more idle -- so we turn the time and say, let's talk with the agribusiness, but not with tax identification numbers, just a number to say so. So we will be more -- we are capable of dosing this. So we looked to debit regarding services replacement. And we created today revenue representing 60% of what was the total revenues of Keplers 6, 5 years ago. So it changes the company. It is revenues with more recurrence. So when you go regarding financial side of the company, we have an exclusive fund created where it participated in a subordinated quarter with all subscribed by BNDES Development Bank of Brazil. Of course, with SELIC at 13 something is more complicated, but you accomodate things, but there are new forms of funding for produce growers that will improve cycle effects and then you have new products and services that are digital-wise and then it's [indiscernible]. Just to make Kepler today is quite different from the one 5 years ago, that was quite different from the Kepler of 10 years ago. It's a different company, less dependent of cycles.

And I would just add, Julio, that perhaps of one of the cycles mentioned that we bet with investments. And today, we have a discipline in investment in CapEx that Julio helps us and the Board very well done. So CapEx is an action that we take care fundly and carefully because we have to uphold it, we have to invest to be.

Well, we have profitable on [indiscernible] Bernardo, Piero thank you for the time being and Fabiano Schneider remain with us on day the first next mission is yours. And now we are talking about compensate in [indiscernible] we have to hear a bit -- on this stage, your accent, while speaking Portuguese I am sorry, Fabiano Schenider industrial and product in direct, and he will tell a bit the development of new products, new technologies, offering more subsides for your arguments regarding the next section of Q&A beyond. In addition to Fabiano Schneider, we will have figures by Keplers with Paulo Polezi, CFO. So a round of applause for Fabiano, welcome.

Well, good morning I will talk -- start talking about operational efficiency. I would like to talk about our guiding lines. And now to everything we do, it's a noble purpose, which is connected with foods safety chain. Everything we do regarding efficiencies related to our purpose. It is done by those the processes and operations, which are quite well defined and we will run throughout this presentation talking about the elements. And I will structure then when you will see during the process in 3 pillars. When we will address products, others will be talking about investments, we have there in the line. We follow within our process and then about the outcomes that we have obtained with this. So this work is following this safe environment, sustainability of business focus on the industry, innovation in processes, automation of systems, digitalization in manufacturing, lean-manufacturing addressed by Julio, which was a great step we did in the company, the issue relevant in continuous improvement related with coal and we can change to better. So this is a process, very strong in our company, especially our customer focus, which is the reason of our existence. Now talking a bit when we say product, Kepler now has a new crop of products and this new crop of products, it's linked to a new development philosophy, which is LPPD, lean product development process disclosed on use, on the automotive industry, and we brought this to our -- into our process because we understand that it generates visibility of the whole chain. We can involve all the players in this process from the internal process and phases of our internal process, but especially here in the market, seeing trends and on our clients to truly develop products that will meet their needs. And with this, we can have a different product and clients can notice this, as we mentioned previously. I'm now talking a bit and addressing some things we are launching now. This year, we have a landmark quite important in Brazil, which was the creation of a first silos dimension standard. Up to then, all that existed and were enforced and were abroad and reelect consensus. So we create [ ABNT NBR 1706,] governing silo dimension. And we are very proud of being part of this and being the main players in the creation of the standard and process. And one of the outcomes of this new process is our new line of silos, meeting and complying with this standard recently approved. As said, Bernardo mentioned a bit expertise of our engineering with lots of study materials assessment simulation. So we reached a new line of products where it's 6.7% more resistant than the previous line, great resistance and its production generate 4.2% less CO2 emissions to manufacture the silos during our process. With this we are also bringing more safety and automation of processes. We incorporated some elements and improved of this product where we work strongly, thermometry, Unity sensors, CO2 and volumetric sensors that basically increased the automation control and level of information that clients can have handheld and also grain converting into something bigger, they can lead the grade in the equipment for a longer time than normally it would be done without affecting grains quality and process. Additionally, this product is quite cool that we just launched it. Outcome of this new crop is sweeping threat, it cleans the bottom silos by the end of discharging process. It cleans by the end. And we brought to this new product technology where we increase safety of the operation and eliminate confined space. So those handling operating the silo is no longer needed to enter the silo as the older equipment would require. And some already still being used that individuals must enter the silo in order to connect the equipment and generates confined space. This new equipment simply eliminated this lead. So spring set screw and we have reapplied for the patent, and we have more than 24 patents approved for product development, which is a point that cause one attention regarding our company. This one more that is being applied for the patent. Now going to another product, which is the dryer. We have launched recently the KW MAX, which is a product that we were able to achieve by engineering in studies with customers. We were able to bring electrical efficiency that is than the previous equipment, thermal efficiency of approximately 28% better. So with less needs for biomass to generate the heat, for which the equipment is proposed and also 28% reduced submissions of CO2. And we have here an interesting number. Only 1 piece of equipment only one cycle of the crop will generate less 271 tons of CO2, only one piece of equipment in one crop and harvest. So this shows how we can evolve and grow in terms of technology, automation and safety of our process and also contributing to the environment. And now let's continue and talk about investments how we have conducted this investment issue in the company. A company now can do within little incremental investments, we are able to increase our efficiency in the process and also increase our capacity to absorb new demands or higher volume of the market. In addition, -- we have a focus. Paulo will show this later. We are focused on the field of our process and also the initiatives of the industry 4.0 because we are looking for performance in the physical processes. So here, we have an example of how we have evolved in terms of automation, some of our initiatives that are linked to the industry 4.0. So we have a robot, laser machine, simulation software and also a high number of connected machines that make our decision make process easier when we have the problem. So this will make the resumption easier and also decrease costs. We also have 1 of the main products which is a new painting process, a new line of paint that we are starting over the past 2 weeks in the [indiscernible] units that completely changes our process, the way how we [ spend ] our parts in our process and see how interesting this is in terms of environmental impact. We have a significant reduction of our CO2 consumption of energy, affluent generation, all of this is connected with the previous process. So the final product quality increase exponentially because we have a better finish of the product and also greater corrosion with this things. And when we talk about technology, it is a line that is connected to our plant management system that can monitor in real time what is going on, the problems, et cetera. And these increases also we also have a decrease in the waste of paint. We would have 60% in ink loss according to the process that we have and now we have at most 5%. So it increases our process and reduces costs, and we also have a significant gain in yield. Now I will show you here to illustrate all the investments that we are making. So you can have a notion. Continuously evolving with important investments in Industry 4.0. Autonomous vehicles, efficiency and safety in the handling of raw materials. New painting line less 40% in CO2 emissions, plus 26% reduction in energy consumption. Collaborative robots, 50% jump in productivity in the welding sector. Part handling robots, 46% higher productivity. Automation of steel cutting and bending 20% gain in productivity. Now we'll talk about the third pillar. So we talked about product development, how we conduct and the benefits of investments and how it translates into practice. So what are the results? In terms of productivity, we are evolving significantly over the past years. And part of that is due to the line process that we have implemented throughout the company with an expressive gain in productivity and reducing losses in waste. This reflects in our productivity delivery punctuality, we have evolved on this aspect as well. We are almost perfect on this, and this reflects what Bernardo said. So the issue of how many customers acknowledge that, that the company will deliver at the time they need. So we have a timing, we must be accurate on this. We have also increased our efficiency in reducing waste. So when we look at scrap reduction, so from '21 to '22, we have a reduction of more than 200 tons of scrap of steel that we have an improvement, which is significant in our day-to-day activity. In our Kaizen, sorry, which are the projects of internal improvements that are unseen, they will suggest and will implement throughout the processes, and this has grown most importantly in our process. And also -- we also have the issue of efficiency of results. We're always focused on sustainability. So we continue to evolve and reducing CO2 emissions, and we are talking about what we create with within the company, electricity. We are working on that as well, water consumption. And we also are evolving in the amount of energy that we are producing from renewable sources. So these are initiatives that, in addition to the results, they are also connected with sustainability of our process. Now to illustrate this to you this process. We will provide you with a video now of our compliance officer and legal officers, Karine Olczevski and also Misiara, which is a management manager will talk about this more in detail.

The base the model of Kepler is based on a strategic plan in a robust culture. We have a team of 140 leaders that develop the strategy of the company on a day-to-day basis with a clear agenda, plans, leadership will work with the teams with the management programs, that are designed for that purpose. So we have a performance management plan and the management and leadership program and also the talent recognition program, whereby we identify the talents of the company. And this is showing our engagement research, where we have a growth of 4%, it has led us to an engagement index of 82%, which gives us proud and leaders show us that we are on the right path on the people development. And this positions us as one of the best companies to work in the state of Rio Grande do Sul.

As the first corporate governance project, we have the structure, governance assessment using the third-party assessment team and we had many benefits for the company that it is engaged in the Board of Directors, investors and this engagement between the Board of Directors and the shareholders was proposed for the Shareholders' meeting of 2023 and has increased the governance of the company. As Kepler is a corporation, we do not have a controlling shareholder, and we have a pulverized shareholding. It's more that we are closer to investors, the better our governance will be which is critical for us. And going to the Novo Mercado, the new markets of Brazil, being listed there is significant for us because it shows that we are ethical and sustainability is the base of our business. The more we grow the more we help to help the world to feed the world by grain and this will have an impact on food safety and the food security in the future.

Fabiano, thank you very much. We will be back soon for another Q&A session. So let's go and show you some numbers now. Paulo Polezi, the CFO of the company will explain all the investments and the numbers that we will present you in 2023. So applauses to Paulo Polezi. Paulo, you have the floor now.

It's a pleasure to be here. It's quite a responsibility to talk about numbers, so many stories and important sales that you provided, Julio went out for a second, but I will be here talking to you. He was quite emotional when we talked about the best. And I also get emotional because I had been working for this company for 3 years. And I have never attended our Investor Day. So I would like to congratulate the team here the controllership, everyone involved the officers, all the partners. The first event was remote online. We had cameras on the studio. So it's difficult for us. And after 3 years, we are here face-to-face with people. We have quite a crowd here, analysts, investors. So I am grateful for this confidence. So I'm a bit emotional here, but let's move on and talk about the numbers and translate into numbers of the story of the company. I am a financial officer for the company, and we want to support the growth of the business to help the areas to make the best decisions. We had partnerships within the company in the most diverse areas. I have 5 pillars that I represent here in silos, and we are focused on financial area -- and for people who need the data and the numbers that are following the company. So let's talk about each 1 of them. The first silo, which is the simplicity of the company. I have a series from 2016, and I explain later why this is during the day, we could also -- could have elected other periods. And we are a company specialized in the market. So 2 messages that we convey here in this slide. We have drivers here. We have a volatility in the first half of the year. So we are focusing on the agri industries. And over the past years, we had a more significant role that we call farms that we had a higher level on this. So the first message if we look here to 2016, international business is 26%. So we show that we can have this discipline. This vision that we have is statistic data, with this data analysis will allow us to protect the business in times of volatility. And the second, is to talk about the R&S, which is parts and services that started small, 8%. And now we are at 14%. It's an important target, but it's 14 of a business that has more than doubled. So partners and services are important for us. So let's pay attention to this diversification of the business and maybe over the next months, we can have more colorful bars here to show that our company is diversifying. The next one -- we'll talk about margins. We also have a series from 2016. And the most important message here is that we have a reached a historical level obviously, 2022 was an exceptional year. We could capture analysts would say there was a way Yes, it was wave indeed, but the company was prepared to capture and serve the wave. So we -- we like those numbers of 2022 because it was 25.3% in average and we can talk about the past 12 months, we are near 22%. And we are in a quarter that we have a seasonality. It's a harvest here, so this is what we have until now. We are positioned at a different level of profitability. And we will talk about this later. This is lower for us, the exposure. So we are confident that we are in the right path. Another look now as I am going down the company's DRE. We will talk about costs and expenses. We have a company that we have a vocation on agri businesses. And -- but at the origin, we are a transformation company. So it's important to talk about the structure and expenses. It's a well-known focus of the company. So we see here the opportunity that we have. We also have here cross control. All areas are owners of our expenses. So we are able to cross expenses and achieve expense efficiency levels. So this will help us to keep the company growing and the expenses under control. Another important step is working capital. So you always have a question on working capital. So I ask my team to provide 2 pieces of information here for us to analyze. So on the right side, we have a historical on the stocks and payment to suppliers and so on and so forth. And we see that we have a balance Kepler, we have an investment thesis because we believe we are a company of a project. So we deliver projects. And because of this, sometimes we have an advance from customers. And when a project is financed up to 80% of this amount, we can receive before deliveries. So this allow us to grow allocating a low working capital. So we had a peak in 2020. It was related to advance from customers. And looking to this graph here on the right side of the screen, we have financial and need for working capital. And this is because of the pandemic because we had intense search for storage. So this is what time the capital was -- it was incredible to see. We were in separate -- we had a surplus in working capital at that time. So it was possible to reinforce our cash and continue to invest. And now despite the financial cycle is low, is under control. We had an inflation in particular regarding to steel, which is our raw material. So this inflation was significant in particular, in 2022 due to stocks. And now I will connect with the data that Bernardo said about the portfolio. The portfolio is positive. So we have a level of stocks that are very good that leave us prepare to capture the opportunities that are coming, that will come over the next half. And now looking at CapEx. It's very important we're bringing you 2 pieces of information to stress this. First, that the category is that we invest increase of productivity, plant automation, IT, safety and remodeling. So we see the biggest focus of the company was almost 80% of increasing capacity and productivity. Therefore, to address the opportunities that are presenting and also more important than this Fabiano just showed you the painting video. We will open next week, grand opening to increase the productivity and quality of our products. So when you look at the CapEx, it's a strategic one in order that the company will keep on having the capacity to grow with cost under control and good payback, historical serial of the CapEx. So you can see approximately depreciation, approximately 3% of net revenues. So historically invested once time the depreciation. Obviously, we expanded further in order to address some strategic investments, the main one is the line of painting and others that Fabiano showed during his presentation. So we are looking look towards CapEx. It's relevant. It's a mission and commitment I have with Piero in order to have a giant CapEx and with quality. Moving forward, connected to CapEx, we have invested capital payback. When I say at Kepler, we have exposure 100% of our business, we've got our capital goods industry. So those of you that analyze the company and follow it, this is a very important indicator to show you if the company delivers payback and it's amazing the payback during the last years, even this time when we provide CapEx of the previous slide, higher one. This CapEx will make and bring cost reduction in future years. So we have increased pressure on the ROI. So 66% is an extraordinary number. And now to be a bit of reference and not something standing alone, I bring you good capital goods companies that are traded in the stock exchange in different sectors. So it's clear that we invested capital payback, it's higher than any of the others in the company in different sectors in the stock exchange. So this is the tip I give you those that like the payback on invested capital, you can see where to invest. Well, moving forward, I will just end my presentation with this. I will talk that all this management grows better profitability helped us to keep a cash flow sturdy position. So we are net cash, so we have more cash than debt. And this ended by the company joining positive flow of shareholders remuneration through dividends. In recent years, obviously, 2021, we have a relevant share of the capital reduction 2021. Most of you know that just recall, we have an investment in capital that was huge through an operation of subscription from the that generated more than BRL 140 million. And we redistribution of capital reduction more than double. So it was of the resulted of the previous year's outcome. So we did the portion for you investors. And now we entered a virtual cycle of growth and cash generation last year. This picture is cash. It's not competence. It's cash 2022 47% of payout. And during the last 12 months, 58%. And we don't see or JCP and dividends. We just disclosed last we will be paid despite BRL 55 million together, adding BRL 55 million here, this number will two. So we have managed to grow the company, make investments do acquisition and even though generate steady cash flow will have a flow of valuable dividends for you. So this is a bit of our discipline, and we hope to keep on enjoying this flow. Now just the last slide, I would like to share with you commitments and accountability in my area, our responsibilities regarding the companies, this is an important point. We will keep focusing on CapEx, always looking productivity regarding working capital and discipline and we don't weigh this. You are very strong with us. For this, you understand it in quarters and more and more, we will focus on the working capital, supporting the company and efficient cost and margin management. And they are the things we want to do throughout the time and investing to the company. M&A merging ecosystems, we talked during the Q&A. We have opportunities, and we will focus on it. We managed to do the first acquisition of Kepler was Procer and others, we've enjoyed. So we kept on moving forward in this area. Another leverage of remuneration. So share purchase, we have a program of sales purchase open today, we will use it. I think Kepler has a very discounted share. So we will keep this and the cash position allows us to do so. And all this being done, what will remain the surplus will be reported as dividends always looking towards growth. we grow dividends follow. So before ending because we talked a lot about resilience, one of the 3 pillars we stressed since the beginning of this event. So you mentioned some moments that Kepler has experienced and what you're experiencing now please give us some examples of those here, the difference and change of one momentum to the next. We need this comparison so we can bring more subsides for the next questions to be posing as follows. Very nice. This point we're addressing is very important many of the meetings I hold with the executives also do with this. We always have this question post. What Kepler made that it's different? What will lead the company to face better the volatility moment and to guarantee this being a robust company. It's a simple many factors we tried. And I was -- had the pleasure of wrapping up with the last slide of presentation to provide you with some information. We set up this pen -- I'm sorry, a bit the amount of figures and numbers, but I hope -- I promise to be brief. The P&L evolution. So we got 2016. Why this year? Because it was the year, the first year that lean methodology was implemented. And since then the company has harvest very important outcomes. So we tried to do this. We could do with '03 -- '13, '14, '18. So '16 was the year chosen and results would not change that much. So you see the top line end of the company revenues for BRL 0.5 billion to BRL 1.6 billion, 3x the revenues. And when we look profitability, we are in a different level. As much as 27 was a magnet year, get this year as an example, the difference is [indiscernible] regarding profitability. If you look within this cost structure, when we get the indicators and divided by the revenue, it has streamed. So 55 to 65, much of the 85, I'm sorry, to 65, a bit of the scale and so forth. And now it's skipping to the lower part and I end with the middle part. Commercial resilience was talked a lot RS is an area that we had in 2016, BRL 37 million, BRL 38 million, BRL 235 million during the last month. So a leap and important recurrent revenues, profitability and so forth. And we talk about the assets we have to cater agri business. We have 2 plants and 1 distribution center. Now we have 2 plants, better, bigger and a distribution sense. So it's a differential competition that no competitor has this. Now talking about the digital side of things, this was not -- we didn't have this agenda on '16. But today, in addition to have the source of all that we position ourselves with this effective technology and process 1,700 units of the base. We think it has a potential to exponentially grow. And then I end with something very important for you, it was talked about the new market. I think that was very important for the company market value reached BRL 2 billion, a very important valuation. And this one, I like a lot the base of shareholders, individuals, it was very small. 70,000, 71,000 and when I talk with relation with investors that we were 30,000 in 1 year, more than 2x it's growth. So something right, we are doing. Otherwise, they would not be into sense gratifying when one sees this. And this also it will daily average volume, and we want to leave a bit of the small cap for another category, but let's keep time to all. Thank you very much. I'm very pleased to be with you. This was the last slide.

So a round of applause for Paulo and a more 20 minutes of Q&A, I think some of you would like to post questions on the previous floor, but we will start providing microphones so you can post your questions. So please present your questions. Our set team will set up the place, and I will invite to join you on stage; Abondi, CEO of Kepler; Bernardo; Fabiano, Industrial Product Director; and Polezi just showed us the figures, Director of IR. So we have the seats. So thank you.

Now we will start. So the mic is already available. We have a first question. And the second here wearing the pink shirt, your name, and please be welcome.

Arnaldo Felizardo from [indiscernible]. Schneider, please, I would like to know Kepler regarding production capacity, the percentage being used, what are the any bottlenecks you might have on the plans for capacity increase?

Very good question. Well, today, we are working, operating at a bracket of 75% approximately. And our plans for investments follow the line of the automation and productivity gain of the 4.0 industry looking for this productivity and the bottlenecks, they are few. And it's possible to, as I mentioned, with small investments that are incremental and pontoon those specific lines. With this, if we have demand in the market at stores, we can fast adapt, adjust our services and cater for our clients.

Now the next question, raise your hand, please. And then 2 more so 3 questions, the [indiscernible]. So what's your name, please?

Flavio, Manager of [indiscernible]. Resources management, my question is technical regarding general solution Kepler. Not long ago, unfortunately, I sold the shares I had because I was scared with the option, but it was -- I was too mature indeed. I didn't research that well. Well, the story tells itself, right? I sold my -- and the payback was absorbed of your shares. And congratulate you all this, they not only use this event during the coffee break and the event, it was very import the store. It adds to the name and value for investors and analysts. My question is one. Following the line of [indiscernible] the option for started the market, has did a brief reserve, I see the sale of both short-term option, this charge of the polypropylene, although low investment, and it seems it has a differential where you can store in more remote areas of a farm. And I would like to know your words regarding what makes the difference one solution for the other and one or the other regard the point of view of growers and opportunities and challenges regarding this tech up?

Flavio, thank you very much for your presence and question. sorry that you sold your shares of Kepler. [indiscernible] it's a very cool solution necessary within the system. But as I said, it's a temporary solution. I will not say a bad necessary thing, but it's a solution that growers or the corporates, they avoid whenever they can because the solution demands lots of labor, it's labor-intensive. It's a slow enhanced on process the [indiscernible] , 2 pieces of equipment, one pooling and the other filling their bags and one putty and loading. So it's a very hands-on process in Brazil. Every 10 minutes I have with clients, 10 complaints about labor. So it's not a path to follow. It's an option when you don't do investment in the physical structure. You use that resource to supply whenever you need. It's a market we investigated, analyzed and we thought should we join this market. We still don't not on this due to its dynamics. It's highly commodity, wise market and there's a possibility of offering the [indiscernible] also within our portfolio with more product reducing the costs, as mentioned before. So I don't see it as a threat for the structure of storage. Again, it's something that's temporary that clients avoid resorting to it. Thank you for the question. Now regarding [indiscernible] if we compare with our sales, not price and it's regarding productivity and quality also Brazil. It's a complicated -- it's a tropical country, different from cold countries. So total cost ownership, it's something that we'll have to analyze during the 20 years of operation. So silos 20 years. So it's not a competitor. It's a solution. They had even colligated with us, were related with us less one of the founders of [indiscernible] and we have to always see a lot new things, personally, they are passionate but a solution. It's our feeling or child and so forth. But but you don't fall in love with the problem. So the problem they want to solution is not our solution. We have the solution, you would be a grower, no money to invest in a whole project. Perhaps investing in the cleaning, drying, it will guarantee a quality product. And then important [indiscernible] 1, 2 years and then it grows next year in 3 years and it grows in silos. It's an ongoing solutions. We can think in solving clients' teams with mixed solutions. We are not competitors. We can complement and leverage our business with this.

Now 3 questions there, Well, good morning. I have 2 doubts specifically regarding capital allocation. The first one, if we can or better say the outlook of the company for the next quarter when you look at cash allocation, dividends and rebuying and CapEx? And the second question would be a bit linking with what market potential, we see Kepler's 2023 is the second best year of the company. And what are you feeling for the next quarters and end of this year, beginning of next, in revenues, cash generation and so forth?

Well, the first question and the second regarding the outlook. So capital allocation will not be different of what I talked with you. Perhaps share your question in 2 parts, investments in capacity, plant capacity. So we are doing a huge process of updating our plant. Always invite you to visit us. We didn't have visiting programs today. We have one. We do it 2, 3 times per year. We invest -- we get the investors, take them to Campo Grande, visiting some clients. So the invitation is here, and it's made. You will see our plans, especially Panambi is experiencing a huge change process for improvement. So we will keep further with this CapEx, the company keeping this level but things was the depreciation, we will keep on with the will be invested on this. The other part of the capital, we always allocate for this inorganic movement, the Procer. We did the acquisition of 50% of Procer using our own capital. We didn't have to leverage than those [indiscernible]. We don't know when it's going to have on its size. But capital structure makes us feel comfortable to move forward and then see how to fund it. With this, all the remaining points, we always follow the policies, reserves internal reserves. We always have to have a sturdy balance sheet. All the remaining, we will allocate and paid through dividends. So we are now in a good moment regarding working capital, i.e. clients anticipations are coming back. So inventories level is good to cater. So it allows us to enter next year with a very good position in our cash. Now talking about the second part of your question. Now about projections, and I will summarize it. I cannot talk too much about this. But we're looking at this the last semester -- sorry, the last quarter, last year, a politicization of farmers withdrawn the investments. So we returned to the historical level from an extraordinary event, the period that we had and the sales were accelerating from May, June. So we now -- we had a portfolio that is higher than the one that we had last year. So we have a good perspective. And according to our mix, as Paulo showed agriculture, legal entities, individuals, we have a good acceleration in legal entities. Soybean and corn, we have to process all these record volumes. So we are doing investments and they are paying back now.

We have additional questions now.

My name is Roberto from -- sorry, I couldn't hear the name of the company. So I would like to congratulate you for the event. I will ask you 2 questions. The first is the concern that we have is when the company has a good cash now start to like acquisitions. How did you start your acquisition, the valuation, the purpose of the acquisitions? What is to diversify to improve yourself? So talk about a little bit of this process and how Kepler can help agriculture to be more sustainable to contribute towards the environment? You talked about reducing CO2, saving water energy efficiency. So how can Kepler help farmers to be more sustainable to contribute to the environment, which is something that we have a demand nowadays in the society?

Thank you for both questions. I will ask you the first one. I talked about acquisitions with us over the past years to build a robust company that generates cash and sustainability in the business and sustainability of the environment, people and governance because these are the pillars of the results. Regarding acquisitions, we have a new cycle. The digital area is an immediate need that we had because we were investing in our digital platform that was launched in 2019. And now we have the opportunity of Procer. I was there in the first board meeting 2 years ago, but it was there. It was an opportunity that came out of nowhere. So we advanced a lot in terms of growth, not only acquisitions, but to internalize our process to be more organic, to be careful in the allocation of capital -- CapEx and investments. As Julio mentioned, we have a good governance in the Board, in the Advisory Board as well. I'll talk about the next 28. We will have a workshop with the Board to talk about these growth opportunities at Kepler. There are many territories that we can advance. We have alternatives. And also, the main point here, the critical path is not capital, is not -- we can buy in cash. We can leverage this company, but we have to leverage the company to have immediate cash results. I would like to jump to -- we have certain math and uncertain father, the Romans would say. But we have a certain and uncertain expenses. So we have to be very careful when we allocate capital. Clear governance is critical, in particular, in our performance are as I mentioned Seletron, a small investment, but it's an excellent opportunity. They are selling to the beans to the coffee mean these are our shareholders. So may change our strategy, never taking both food feet from the ground at the same time, but always within our performance area. I would like to add a comment here. We explore these 3 lanes of growth, one of them is market growth, all these opportunities that you have seen here. The second is value-added, Procer product launches and acquisitions; and 3 would be acquisitions to -- it will be to leverage all this. When we open this line in the middle, which is the market to make you comfortable there is opportunity, but our selection is to be in businesses that are leaders in the market like Procer, companies that have the technology that would contribute to us, but companies that are profitable. We are not a turnaround company. And maybe we can pay more expensive price, but it will be not a nightmare in the future. So we have it clear in our minds. It was a hard process to get Procer but when we got in, now things are easier, and this is our vision. So to accelerate these opportunities with discipline. I would like to talk about the environmental aspect -- we have 10 minutes now. What I can say is that we have a vision that is an extensive vision in both in our internal operations, as I mentioned, product development, and we are evolving advancing. We have [ Carina ] here, and she works on ESG projects, and we will work even more in the end with the customers. What else we can do to our customers in the chain. So we can reduce even more this impact that can be generated by the process. The next question now. Now just to add a comment, we are focusing on products as well. Fabiano showed our [indiscernible] that consumes less electricity, less thermal energy, less particulate. So it's good. The sweep screw because there is a risk of workers going in the silos. So less work-related accidents, ESG. So we are thinking of all aspects. So we have the ICG in our DNA. So we work with the loss in the storage process. We are focusing on products that are serving the economic part, but also the environmental aspect for all our customers. Your name, please? Question?

My name is Raphael from Multiplica Crédito e Investimentos. The first question that I have you have a share of 50% of the installed plant. I want to understand the share of new sales. And the second is about technology. You talked about 1,700 plants that has this installed technology, the sync technology. Have you mapped all the silos that are installed and that can receive this technology? If yes, how many?

Our ambition, I will talk about here, is to have 50% of units in Brazil connected of static capacity and to achieve 50% of static capacity connected in Brazil and 100% of our new units, they go out of the factor with the process automated. So unless the customer would say that we need a specific solution here, but we have Procer working on this. And this is a very intense and proactive work to connect all the other existing units. 15,000 customers share in the agri business with virtual active communication. We can do this. And there are also some elements that are being developed in terms of hardware that we can adapt, the raw of the hardware that we can connect from a connected unit. So this is the way that we are aiming. The share question that we estimate, first we had 50%. Now we have 40% of share. We have a longer life light than our sectors. So we had a higher share, we have a higher presence and we estimate this because we are part of the [indiscernible]. We have a chamber at [indiscernible], which is a storage chamber. So we have some statistics in the [indiscernible]. We have [indiscernible] the steel and cement industry. It's different in terms of the statistics. So we have many competitors. Many of our customers are out of [indiscernible]. And with these statistics, we try to estimate our share, which is 40% or maybe 38%. Most of our competitors don't publish balance sheets. We are on the stage and people are looking to us. We have to do this, but we believe that these numbers are true, they are accurate. And we also have a monitoring on a day-to-day basis. We have a digital system to control the entire pipeline. So every order that comes in and all of our regions is registered in our process. So we have a pipeline. So the order will go throughout the chain. So we know when the order is placed, when, the order is delivered. So with this, we have a success rate. We have a meeting every week, every Friday, to look the entire supply chain to see how we are in terms of sales, plants and supplies because we are selling to now to deliver in December and maybe next year. So we must have factory capacity, deadlines, supply. So we look into all of these aspects. And we had this meeting every week, we have a success rig. We have 100 projects, we lose 50, who did we lose those projects to. So we monitor all of these assets. And our advantage that we have is we have a big share. We believe and we are 70%, 80% of coverage. So we have a good coverage, and we have accurate statistics, which is different from our customers that do not have that coverage.

Mateo from Logos Capital. I want to make 2 questions to understand the resilience of the thesis. The first question is that last year, what the PSA that was delivered to us is different of what was announced. So what do you feel about these 2 past months if the PCA that was announced will be actually delivered? And the second that I would like to comment is about the percentage of farmers that are purchasing of the silos with their own resources, with their all firms, not financed or from the PCA or is closed fund financing?

Your name again, Mateos. Thank you for both questions. I will start here. The PCA, it's about the PCA. We are very happy with the announcement, BRL 6.6 billion, 30% more than last year for a 30% of growth in the total. When we look to the PCA since it was created, except for 2 years in this spirit, I think we have 11 years of PCA. Except in 2 years. It was announced about 100%. In average, it is 70%, 80%. In the other 30%, we remember that in the end of the day, it's not the money from the government. It's a money from the financial market, private and public banks. So it's roughly 70%. So if we work with that statistics, BRL 6.6 billion. And last year was 5.1, allocation was 60%. So we have a flow using statistics from the best higher than ever. So using that we will get to the mark. So this is important. The second point, we had a normative instruction that order, that allocations will be made every quarter. So you can see the cup half empty or half full. Half empty is the critical problems that we can see here. It would be important that this money would flow quickly at the beginning. And the positive aspect is that we will have different farmers involved in the process. So -- and the second part of your question, historically, if we look into this, approximately 70-30, 70% financed and 30% on funds. Over the past 2 years, it was the other way around because they would use 70% of own funds because finances were not available. And now as we have a first half as a figure in credit facilities, we are half. And I think it will stabilize at 50-50. And I think the most important is the announcement of the plan I gave a message of confidence to our customers, and this has helped increase the order portfolio to make the wheel turn not only for Kepler and for our competitors as well.

We have 2 questions 2 more questions. I also have one question here. from the audience online. I would like to know [indiscernible], a conflict about the conflict between China and Taiwan. That would stress the relationship between China and the U.S. So how would the Brazilian agriculture and Kepler benefit from this?

This is about geopolitics, right? It's clear. I'll talk about Kepler. In Kepler, we have 20% of our funds come from China, like steel, boats and this type of supply. If we have any problems, we can change. It's not an electronic compound. It's a simple part. There is no risk on this. And now let's look into this indirectly because we are in the agri business. It's difficult to talk about geopolitics, if there is war or not. Anyway, the flow of food will continue no matter what. We see all this war in Ukraine issue, there is an embargo going, but Russia continues to sell oil in -- continues to sell food as well. And we saw that when the problem started, fertilizers was a concern, but we do not have a shortage of fertilizers. But I believe in case of a war, we will not be affected. But let's talk about other aspects. There is a tension between the U.S. and China and Brazil, as we are a second player. As second, third, we are a power in agribusiness. It's my natural that we can be a supplier. They can be exempt. We can be in portion rather than going into the conflict. And I believe Brazil is already benefiting from the geopolitics because we are a neutral country, and we have this possibility of supplies. Even talking about coffee, over the 5 years, it will be critical in terms of food because we have a demand coming, production of food must grow, the direction of corn to produce ethanol. So countries that are not self-sufficient, like China, Saudi Arabia. So they want assurance for food safety. So I believe that Brazil is well positioned in this aspect. I'm not talking about China only, but the Middle East as a whole of Saudi Arabia. As a supplier of food, we are very well positioned.

The last question, I'll start with you.

And then well, Eric, again, regarding the working capital need. During the quarter, net in '20, the last one when you presented in figures year-by-year. The cost of sold products had increased almost 80%, and the company justified this correctly with exchange rate volatility and commodities. And then I question you back then, what would be the attitude of the company when you were caught by surprise and you said you were setting a perspective structuring in order to do more smart procurement, EDA and so. Now we see the need for working capital is BRL 157 million. I would like to know there was a lot of exchange rate volatility and commodities also. What's the accountability of this sector responsibility of this figure, BRL 157 million? And it's sensitive information, but whatever you can say, how can the company prepare itself to face all this volatility in order to not to have this figure?

Well, thank you for the question. As we have shown, it's very strategic, I said we are a project company. We -- so we Bernardo poses an order today, and we deliver in 6 months, and we don't take risk. So we acquired the raw material bring -- and stop its price and profitability or so. In the past, it was not like that is the question you call us about past quarters. I think the last and before last, the steel skyrocket its price. We have inventories. We had a policy for this where we foresee 3 months of coverage but still went up during a time that was almost 100%, and we had sold in the next replacement was very expensive. So then we update this throughout time. So you can see movements being sharp regarding working capital. And this is adjusted throughout time line. But again, we have mitigating factors, coverage policy and we acquired raw material steel from different points to try to mitigate these effects. Currently, now this increase, we showed a need for BRL 157 million working capital. 2 factors affect this is that the acceleration of demand, especially for farmers from next year to this was sharp. So we still had a view back then that we -- we foresee the future, right or the positive mark for '23. There were deacceleration happened and the steel was prices of last year, current year, 20% approximately. We are acquiring raw material with a better price. We extremely for a more expensive inventory for a cheaper one and reorganize the competition. So I think that first moment was back then. Now we are very sure about this and things are back to normal. So the other question, well, to wrap up. This -- best days, I will talk you with a friend from the investor sector in the U.S.A. and this peer, he invests in agricultural sector and so forth. And he asked me why Kepler? Does not lease the silos instead of selling it. This was our talk. And then he asked me, wouldn't it be more useful doing a lease of cyber, they would do how deduction bracketed this. So I would like to hear your opinion if you thought about this possibility and the energy is the drying plant, couldn't it be supplied by biodigesters or generators in the own plant using waste from it from the stock so forth, animals. So do we have a company of forecast in the future. So well, answering a bit about the lease, we believe a lot in this thesis. In our business plan, we just mentioned we believe there will be natural growth in the market as we are seeing it. But we, as managers, we must look for demand generation. This is the word we use, how to sell more than the average. So the market is growing like this. We will grow 8% per year, 10%. No, we want more, and we believe strongly in lease. But it's simple, but you have to change the feature on. We are working on. First, we did the funding, which is more simple and ordinary, let's say, the own funds move forward as an option for the PCA. Now we are working on the lease still at some points. The first point for lease is it has to be a commodity. It cannot be within the rural farmer property, a sales lease back. It's not a lease so it has to be in a road that has net ability. The contract of 5 years, then is there so forth, no problem. Yes or no. We have to have another client and replace. So it has to be a region with demand and potential and continuity. We are looking for this perhaps Mato Grosso, Para, we think they have potential. And then regarding the ownership of sites, is 100 million, 200 million not important. So we don't want to sell back. We want greenfield. So we must start creating plans perhaps. We are addressing this 2, 3 plants that belong to us that we make it feasible, our own risk. [indiscernible] mentioned 360. We don't sell just equipment, but we know how to build a plant. And then we package this, call someone and set up a bigger fund. And then there's maintenance also equipment like [indiscernible]. When the lessor when he receives the car back, you have to put it in order so the average consumption like a car but it will have some pumps and things like that. You must put in order in the car. So the lessors to work this out there. Those interest, we are working seeing potential clients, big and small. We are working, I think we will have something new next year. We believe strongly because demand generation, if we can put 5, 6 projects like this, 5, 6 projects per year, will be BRL 200 million, BRL 300 million more per year. We had to put this up, we are working on it. The second question, now regarding generation through different sources of biogas, and we are assessing this is under our radar development portfolio, not only gas as a source, but on different opportunities in addition to gas today because this -- we saw a migration that's happening in this difficulty of labor inland. So they use round wood than biomass and now they had a good cost growth, substantial and variables and pulp and paper plants experienced this, and this affected the price. So we are under our development assessing different sources for heat generation for equipment. So we are heading towards the end, and I would like for the final message for those following us who are with us in the arena and YouTube. First, thank you for your interest for our company. We are very proud of what we are doing. We are working during the last years to build this sturdiness and deliver excellent results and maintaining sustainability in the different fronts during the next year. As said, we have been working also with our growth. We believe our company has a positioning in the post-harvest that can be, in fact, a growth platform during this area, not only added value and digital but also different fronts. We have worked strongly on it. Julio mentioned that comes from the Board, governance Board level, we are cooperating. Our shareholders had 20%. So it's an accountability not owned by shareholders, but the Board and the Board of Directors to keep his company going forward. Individuals are main consult. We have our investment on individuals we built administrative structure. We built a new Board. There are old individuals from the company and new individuals invited to be part of this Board. So we are heading towards in the sense of individuals, and we will keep on doing this. So I have full first that Kepler has a privileged position as we showed today due to the fact that we have the global trend. Brazil is very well positioned in this global trend, and Kepler is well positioned also in Brazil. Let's not do crazy things of investments. We always joke we will not buy the company to do turn around. We buy stream company that will add synergy to our businesses somewhere that to bring either commercial industrial, so forth. So we will advance toward this back because I believe Kepler has all the conditions to do so conditions in structure, conditions in financial structure, individuals and positioning in the marketplace. So for sure, during the next years, you will see a development that will happen in this front. And we think a lot in the long run. We have 1,700 collaborators. And I would like now to thank them that without their work, we will not be here. So all part of Kepler individuals, these 1,700 collaborators there aren't because Kepler is [indiscernible] . So you had the opportunity to visiting our plant, our plants a is a bit bigger. You will see the condition of seeing what these sites are doing. To wrap up, I would like to thank the process, those here, those remote. And now let's wait for the next event that will have the opportunity to attend. And feel free to engage our Investor Relations area. And I would like to make a point here that Investors Relations here is available all times at Keppel, Piero, Paulo, Bernardo, Fabiano, please we would like to say goodbye, and I thank the shareholders, analysts guess for embracing the information as participants. This is so important on behalf of Kepler, I make this point of saying the commitment of the company with a sustainable development with the good practices of governance, and we wait you all during the next CapEx day on 2024. So thank you very much. Congratulations and round of applause to all. See you in the next Kepler Day. Thank you.