Motiva Infraestrutura de Mobilidade S.A. (MOTV3) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen, and thank you for holding. Welcome to CCR S.A.'s conference call, where we will talk about the earnings for the fourth quarter of 2024. We'd like to inform you that this presentation is being recorded and simultaneously translated. [Operator Instructions]. Before we continue, we'd like to clarify that any statements that may be made during this earnings call about the company's future, its business perspectives, operational and financial goals are simply the company's beliefs and assumptions based on the currently available information. Remarks about the future are not a guarantee of performance. They involve risks, uncertainties and assumptions as they refer to future events that may, therefore, depend on circumstances that may or may not come to pass. Investors should understand that the general economic conditions, industry conditions and other operational factors may lead to different results than those expressed. I would now like to give the floor to Mr. Miguel Setas, the CEO of the CCR Group. Go ahead, Mr. Setas.

Hello, everyone. We'd like to welcome you to our earnings call for the CCR Group and for the fourth quarter of 2024. And this is also going to discuss the full year of 2024. First, I'd like to wish you a Happy New Year since it's the first time we're seeing each other since last year. I'm here with Waldo Perez, the CFO; and Flávia Godoy, Investor Relations Director. And we would like to wish you a great 2025. We will start this conference call by stating that 2024 was a year in which we structured our strategy for 2025. And we set our ambitions for 2035. It was a year in which we prepared ourselves to consolidate the transformation that we started based on 6 essential pillars. First, selective and profitable growth with 2 main milestones at the end of 2024. We acquired 2 premium assets, the Sorocabana Rota in Sao Paulo and Lot 3 in Parana, which added nearly 900 kilometers to our road network, an increase of 25% in our Roads portfolio. These assets were acquired in very attractive profitability conditions which we mentioned when we won the bids, in the mid-teens, and this is in line with our strategy of having profitable growth. As a part of this growth, we are going to resolve 2 stressed assets. And this acquisition consolidates, first of all, our contract with MSVia and its bid process will be in May and it also concludes our services in CCR barges, hydro transportation network in the city of Rio de Janeiro which also addresses a concern that we have of making this asset profitable. So these are important assets, which are stressed and we will consolidate in 2025. And this process began in 2024. And as a part of our growth agenda, optimizing our portfolio, we had 2 strategic objectives in our plans. We also have a very strong efficiency agenda. And throughout 2024, that included several initiatives to prepare the company for 2025. We believe that this will be a structuring year for our performance. We concluded this year with a cash to net OpEx above -- excuse me -- OpEx to adjusted net revenue ratio of above 40%. And when we adjust it as to the recurring basis at 40.2%. And we foresee that in 2025, this indicator will be below 40%, in line with our expectations of reaching 2026, around 38%. So in this strategy, we have a couple of examples of what we did in 2024, which we're reducing our headcount. So adjusting the company's investments, we reached the end of 2024 with 620 in our head count. And we also are improving our [ MSO ] through our cost of energy, which was optimized with the transaction that we had with the Neoenergia Group. We are now partners of a wind farm in Piauí, which reduces the cost of energy for us by 20%. And now amounting to 60% of our consumables. So this is also in line with our optimization of our cost structure. And finally, a quick word about our capital structure, our financing system. This will be explained by Waldo. But throughout the year, we had a number of operations and liability management, which has helped us to optimize our average cost significantly. And this generated a value -- a net value of BRL 235 million in gains. This is a strategy that we will continue to carry out. While the market is favorable. We will continue to do it in 2025. And this is also a part of our global optimization strategy for the company's overall cost. I'm not going to go into details about this, but we are also improving our sustainability beyond this operation and energy. We have several goals that we reached in 2024. And the next priority in our plan are having world-class competence, which means investing in technology and in our human resources so that we can have a better critical competencies in the CCR Group. So this concludes my opening remarks. I'll be available at the end for the Q&A. And I will pass it over to the company's CFO, Waldo Perez.

Thank you, Miguel. So let's continue with the highlights for the fourth quarter. We had demand growth in all models, roads had an increase of 1.1%. And this includes passenger vehicles, which had an increase of 12.2% in this period, especially because of increased demand in ViaSul and ViaCosteira. Heavy vehicles had a high -- a lower growth than that. There was a deceleration of commercial traffic because of less grains being transported, especially soybeans and corn and fewer sugar imports. In Mobility, we saw an 8% growth with an increase of 5.8% in the Sao Paulo units, especially because of the lowest unemployment rate in the city since 2012. In ViaMobilidade - lines 5 and 4, demand was up 5.9% and 6.3%, respectively. This was due to more in-office activities resuming. There was also a significant growth in Metro Bahia and VLT Rio due to the 2 new stations that were added to the Bahia Metro, which had an increase of 15.7% of demand. And in VLT Carioca, there was a 31.8% increase in the number of passengers as we started operating Gentileza Intermodal station. Airports, we saw an increase in the number of passengers of 9%. In international airports, we had a 5.8% growth; and in Curacao, 15.3% growth. A strong growth due to consolidated international routes, higher airplane occupancy and more frequent flights. BH Airport had an increase of 24.3% significant growth due to incentives and discounts in the state of Minas Gerais on aviation fuel which increased the number of flights for all of our clients. In the southern and central blocks, we saw good performance, especially because of the increased occupancy rate in airplanes, the load factor. So we had a very positive quarter regarding me. Looking at the costs, we have a number of extraordinary one-off events. Looking at this table, in personnel, we were able to sustain our efficiency in personnel costs. There was no increase in comparison to the third quarter of 2023. The concession fees saw a slight increase of BRL 17 million, but this is due to increased demand. So that was a variable cost, and third parties services, we did see an increase due to higher expenses in pavement conservation. In ViaOeste, this was BRL 51 million; SPVias, BRL 10 million; and RodoAnel Oeste had BRL 5 million above the amount for the fourth quarter of 2023. We also had BRL 8 million increases in Curacao due to hiring temporary teams for the one-off demands during this quarter in the Curacao Airport. When we look at other costs, this was extraordinary effects, most of which were several provisions and the impact in the legislational change on road. So this was a one-off cost. And looking at nonrecurring costs, We have BRL 191 million in construction work and improvements in [ ViaOeste ] to which are recognized as costs despite being investments -- being CapEx. So the OpEx cash to net adjusted revenue in the last 12 months a slight increase of 0.9 percentage points to 41.2%, as Miguel had already presented in the beginning of this call. It's also important to highlight that in this calculation, we considered BRL 120 million -- excuse me, BRL 102 million in extraordinary costs, which includes reducing our investments in barges as they are at the end of their operations and will want to be continued in 2025. And we also had several provisions due to this change in legislation regarding animals on the road. So in order to provide a better comparison, this ratio should be adjusted for pavement conservation of BRL 62 million. So in ViaOeste and MSVia's, both operations are also at the end stages. We had this extraordinary effect, and this was all -- if this was also disregarded, as Miguel said in the beginning, our recurring base would not have this level of 41% will be 40.2%. These are significant one-off effect that we have this quarter. When we look at the numbers in detail, we see that we're on the right track, and we hope that -- next year, we will have an even better results. I would like to underscore that we're focused on accelerating our efficiency reinforcement journey and we hope to be below 40% in 2025. We had growth in EBITDA and adjusted EBITDA margin across all of our models. In Road, it was a 6% increase to our EBITDA and margins went up from 73% to 74%. In Mobility, we saw a 12% increase in EBITDA and margins going to 51% to 52% and in Airports, a 33% EBITDA growth with the margin also going from 36% to 39%. As a result of all this, our consolidated adjusted EBITDA reached BRL 2 billion, a growth of 5.2% in the fourth quarter. So this was a quarter with a very significant EBITDA growth and also adjusted EBITDA margin in all of our models. Our adjusted net income for the quarter totaled BRL 360 million. Looking at our financial results, we can see that it was 4.9% higher than the fourth quarter of 2023 due to an increase of 10% in the company's growth indebtedness. There was also an effect on the IPCA for BH Airport and these effects were partially offset by higher cost capitalization on loans, especially in RioSP, the South and Central Block and ViaSul. The fourth quarter of 2024 has an effective proportion of 41.3% versus 43% in the fourth quarter of 2023. This was due to nonrecurring effects that took place in 2023. The effective rate for 2024 was 43.9%. If we were to disregard the one-off effects, it would have been 40.5%. So again, we're focusing on reducing it. We're on the right track and we expect to have a lower rate so that we can post better results for the entire company. Equating with CapEx, we had all-time high investments in 2024. We're focusing on making the right investments and executing them very well. We had BRL 2.3 billion in investments, up 15% versus the fourth quarter of 2023. And in 2024, we reached the highest CapEx ever executed by the company in a year. It was BRL 7.3 billion, up 18% versus 2023. Our physical execution was also very good. We reached 93.5% in physical execution and the difference was postponed to 2025. So when we look at the financial figures, BRL 1.3 billion in investment will be postponed or transferred to 2025. A part of it are just postponements and a part of it will be work concluded in 2024, which will be paid for in 2025. The main investments during the quarter are here. In RioSP, we had an expansion, expropriations, pavement recovery in the Sao Paulo region. Before I continue with the others, I'd like to underscore a couple of points on RioSP again. This is a project that has the main sites, the Sao Paulo metropolitan region, Serra das Araras, and BR-101. In Serra das Araras, we will have a fee increase of 4% and 100 basis points. And in BR-101, we will see a tariff increase of 6% and additional reduction of the variable [indiscernible] of 6 basis points. So I'd just like the market to understand this because this will all generate value for us in the future. In ViaSul, we saw applications at BR-386 and reconstruction of infrastructure loss because of the climate catastrophe in May. In Urban Mobility, we acquired rolling stock for Lines 8 and 9 as well as systems and improvements in the electricity network. In airports where the South and Central Blocks, we had improvement works related to Phase I-B of the investment plan, and they were all concluded within schedule, and now they're being approved. We have boarding terminals, infrastructure adjustments and operational improvements. So this was a quarter with significant investments, a record in physical execution and also a record in financial executions. We will continue with something I'd like to mention this quarter. Last quarter, there were questions about our updated statement on the commitments for ITR. This is Note 24.2 of the ITR. Here we have an update for our capital structure for 2025 because we want to give further details and clarity on this to the market. We separated our investments into 4 categories, which are Improvements, Maintenance, Commercial Revenue Expansion and finally, Service Level, as you will see here, in the blue box. And this slide also shows different concepts between what was budgeted in our capital plan and our ITR commitment. So this shows what will be made available. I think this makes it very clear in the graph, but if you have any further questions, I will be available for that. Here, we have a summary of our capital budget in 2025. The capital budget, as I mentioned before, has been classified here according to the 4 categories, as you can see how much is an improvement, how much is in maintenance and how much of these investments will generate commercial revenues or will apply to our service level. So now you will have a better understanding of our investments as a whole. I would also like to highlight that 12% represent investments into new businesses. So Sorocabana and Lot 3 in Parana. 10% of these investments may have rebalances or will have a counterpart in revenues. And the results release you'll be able to see these investments for additional improvements. And that will give you more clarity on our capital budget for the year. So let's continue with leverage. We concluded the fourth quarter with our leverage under control at 3.3x net debt to EBITDA, a slight increase in comparison to the previous quarter. But this is all within our capital -- our target capital structure threshold, which is 2.5 to 3.5x. I'd like to remind you that our dividend policy is 1.5% during this time. We will continue to focus on holding company's net debt. We had a redemption of 10.4% versus the previous quarter and a slight increase of 3.8% versus the fourth quarter of 2023. So the net debt for the company is at BRL 3.278 billion -- excuse me -- BRL 3,278 million. We had many disbursements, as Miguel said, we had a liability management from the beginning and we're working actively to refinance BRL 5.9 billion in CCR in order to reduce our cost of debt and generate a VPL of over BRL 235 million. And there are some highlights here like AutoBAn, with BRL 2 billion and SPVias with BRL 640 million in disbursements for the market. Looking at our amortization schedule. Our debt duration went from 5.4 years in December 2023 to 5.7 years in December 2024, an increase. 48% of our debt will be as of 2033. So this is very linear in 2025 and 2026. We don't have a total -- we won't have more than 7% of our schedule. Our balance is robust, and we're well positioned to continue with our growth program. Before I conclude this, I'd just like to underscore our commitment to our strategic plan for the next 10 years. And this is based again on 4 pillars: selective profitable growth, focusing on creating value, having a robust balance and leadership and sustainability. These are the pillars that will allow us to carry on with our strategy for 2035. And I will now give the floor back to the operator who will run our Q&A session. Thank you.

[Operator Instructions] Ms. Fernanda Recchia from BTG to ask the first question.

I have a couple of things to ask about. First, going back to CapEx. I'd like to ask about your guidance of BRL 8.6 billion. Historically, CCR does 70% to 80% of the CapEx they announced. In 2024, it was a bit above this historical range. So if you can give us some color on that. Looking at this CapEx guidance for 2025, should we expect it to be in that 70% to 80% range? Or will it be higher than that? I also like to ask about capital recycling. This week, there was an article in the news talking about the fact that you hired some assistance for that. So this is something that we've discussed in previous calls about divesting on some parts of CCR. And I'd just like to understand what is the time frame for that? Do you think that will be short term. And maybe in airports, it would be good to understand if this will be a airport package negotiation or if you're focusing on specific airports.

I'll start with your first question and then Waldo will answer the next question. Just a brief comment on CapEx. We had a physical execution of 93% to 94%. The financial execution always lags behind. So it was at 75%, if I'm not mistaken. And we expect that in 2025, it will be similar or it may be even higher than 2024. So our goal is always to be close to 95% in physical execution. We hope to increase that level. And in the financial execution, of course, it will come as a consequence. An example I can give is airports. We have disbursements in airports that will only be made in 2025 after the airport has been improved, after it was changed in 2024. So that tends to lag behind a bit further. This is what I have in mind for our physical execution. But of course, we have to understand that the financial execution lagged a bit behind. I don't know if you have anything to say about that, Waldo?

I think that's it. In the last 2 years, we have significant improvements in how we manage CapEx as a whole. We created a CapEx group to spread better practices and also we try to be more precise in how we follow up on the financial execution. So we're confident. You can see that this year, the gap has been only 15%. And as Miguel said, it would have been lower than that if we didn't have these contractual terms that actually benefit us that we only pay when it is approved. And we hope they're going to be more precise in delivering what is in our capital budget. To answer your second question about capital recycling. We are pursuing exactly what we announced to the market during our CCR Day in May 2024. So in the case of airports, we want to derisk this platform. 2024 was an essential year to execute our investment obligations there. And we executed some changes in 14 airports. Some of them have a longer schedule, but most of the investments needed for Phase I-B has already been carried out. And as we mentioned, our CCR Day, our vision for 2025 is that the CCR group understands that the market is very fragmented in airports. So there are opportunities for consolidation. And we wanted to consider these opportunities article that was published this week is not bringing any new information. We have always worked with assistance and looking at scenarios and structuring options. And we understand that 2025 will be a year in which the group will pay closer attention to derisking this platform. And we'll be closer to these consolidation opportunities without any urgency, without any amount hurry, we just want to unlock and maximize our value if there are any transactions. So we will continue with our calendar very calmly without any additional urgency or the remaining portfolio. In the mobility platform, we also have the intention of starting a strategic partnership with an international partner that may help us in our growth projects for this platform. We're also looking at some alternative scenarios, but we don't really have an established calendar for that. So there's no timing pressure. And recycling assets that may be more mature, that can be recycled, we're aware that with high interest rates, we need to we should be closer to our suppliers. So since we are aware of that, our schedule has been adapted to having the right market conditions. In the case of airports, I think you all understand the current circumstances. Most of the airport revenues are indexed in U.S. dollars and of course, in the current scenario with a foreign exchange, this will have a positive impact. So most of the EBITDA in this platform has been concentrated in international airports. So obviously, if at some point, this changes, the market will be informed. But for now, we don't have any transactions or any operations being analyzed or in the preparatory stages according to our strategy.

The next question will be asked by Guilherme Mendes from JPMorgan.

So first, I'd just like to ask a follow-up question on new projects. I think Miguel made it very clear that you are not in a hurry to sell airport or mobility assets. But does that change your project pipeline for 2025 and 2026? The second question is your traffic outlook. We know that in 2024, we have strong models. And is your expectation for 2025 the same?

I'll pass your second question to Waldo. But just to answer the first question, thank you for being here, Guilherme, thank you for your question. And we have a commitment to you and to the entire market of implementing a growth strategy that is selective and profitable. And that's what we did last year. We had 11 bids in roads, and we won 2. And this was a meticulous execution. We had a very slight differences in comparison to the runner up in these bids. So we are doing very precise and accurate work to win these projects that will create value for the group. The same can be said for the new projects, as you said. We're being very selective, of course. Some of these projects are very natural, like MSVias, as you know. In May, we will have a new bid tender to understand if CCR will continue managing this asset. Of course, with MSVias, CCR will take part in that bid tender. We'll also have a private concession for Lines 11, 12 and 13 of the Sao Paulo Metro. We intend to participate. No decision has been made, but we'll see if we can have the right level of risk and returns according to our portfolio. And for the remaining projects, we'll see throughout the year if any of them fit into our profitability goals. But we're very selective, once again, because we are aware of the macroeconomic scenarios. We know that interest rates are high. And therefore, we need to have a lot of caution in allocating our capital. So that's what we will do in 2025.

Guilherme, thank you for your question, and good afternoon. So to answer your question on traffic. First, road traffic depends a lot on GBT -- excuse me, GDP. GDP expectations are slightly above 2%. So considering there's a variability of 1% to 1.5%, we do expect to see some growth within that variability. If we compare January to December, in January, we already saw positive growth, which was higher than the fourth quarter 2024. The year is starting off relatively well. As a reminder, this year, we're not going to have suspended [ access ], which is something that we had throughout 2024. And when it comes to possible upsides, from our perspective, we expect agribusiness to perform very well this year, especially after the second quarter. So we are grounded, but we are very optimistic about the rest of the year.

Andre Ferreira from Bradesco BBI to ask the next question.

Congratulations on these results. I have a couple of points to mention. First, this year, we were talking about [ Sorocaba ] and Parana starting operations with some CapEx, as you mentioned in your publication. You also have your CapEx for MSVias in this renegotiated contract. So I'd just like to ask, what you expect for your leverage for 2025 and 2026? My second question is when we look at CapEx in mobility, in comparison to the initial expectation in 2024 and what was executed, there's about BRL 600 million in mobility that was postponed to 2025, especially in Lines 8 and 9. So can you give us some color on what caused that? And do you believe there will be an investment peak in the first quarter in Lines 8 and 9?

Thank you, Andre. I'll ask Waldo to talk about leverage, and then Flavia will talk about CapEx.

I think 2025 will be a very important year for CCR. We will have a few barges -- excuse me, we'll have the [ barges ] business is going off the company. This is a very difficult asset that uses a lot of our cash. We will also see the end of MSVias, if it goes to a different competitor, if it remains with us, it will be in a different configuration. And we also will finish a business that also had negative EBITDA of BRL 200 million and also drew cash from the company. At the same time, as you said it very well with [ Sorocaba ] and Lot 3, we will have two new concessions that we will take over at the end of the first quarter and in the beginning of the second quarter, which, from the beginning, will have a strong performance increase because they have performance and EBITDA naturally. So with these effects alone, we are seeing a very positive impact when it comes to leveraging. And the investments we will have to make on Sorocaba and Lot 3 will start in 2 or 3 years. Until then, investments in airports will be in maintenance and mobility, we will also see a reduction in investments. And RioSP and ViaSul will be at a lower level. So even with the new concessions, we will have a very compatible level of investments, which will not burden the company's leverage. Our strategy is to be at 2.5 to 3.5x net debt to EBITDA.

Andre, good afternoon. Thank you for that question. And to talk about the postponements we had from 2024 to 2025, as was said before, about BRL 1.3 billion was postponed from 2024 to 2025. And a significant part of this was related to our investment in Lines 8 and 9. Our investment for 2025 and those lines still include some disbursements for trains. At the end of last year, we received the last train, coming to a total of 36. And we also have investments in systems, station, modernizing the company, and we're also investing in electricity substations. We see a recovery of this volume that was postponed for -- during the first half of the year. When we look at the guidance and the capital budget for 2025 specifically for this project, we have also an investment that will likely be rebalanced, as we saw in our earnings release.

Filipe Nielsen from Citibank will ask the next question.

I also have a couple of questions. I'd like to ask about liability management. The last issuances have been very attractive, below the backlog debt cost that you had. So you've been refinancing significant amounts. And I'd just like to understand if there's still more space for this in the future for this kind of operation. And how has the credit market been behaving with higher interest rates and a more difficult macroeconomic scenario? My second question is about your OpEx cash to net debt -- excuse me, net revenue. So we understand that MSVias and Barcas will no longer be in your company, your portfolio is being renewed. But I'd like to understand what else will affect that energy contracts and what else will generate results this year, what do we still have ahead of us?

Thank you, Filipe. I'll let Waldo answer your question on liability management.

Filipe, liability management is something that the treasury directors are always paying attention to. We're always monitoring the fixed income market locally and internationally. And this is a constant effort. So we're always trying to find the right moment for the market, where these refinances make sense, so that we can always bring the cost of debt down. And we always try to have the best debt profile, so that we don't need to refinance in specific years. So this is something we will carry on doing. This is in our DNA. During the year, we had a good moment for that because in 2024, there were several points in which the spread was tight. So we understood that we did these operations at the right time. In January, there was a slight decrease in those opportunities in comparison to 2024, but we still have very good rates. And whenever it makes sense, we will probably have other operations of this sort.

About OpEx cash to net revenue, and Waldo can also add to this answer. As you must remember, our goal is to reach 38% by 2026. We're trying to advance this goal, as you can imagine, we could have compatible results in 2025. We made an effort to identify potential efficiency gains. Our estimation was BRL 500 million, BRL 550 million in optimizing our cost structure. And this is all split the following way: Approximately about half in 2025 and half in 2026. You mentioned energy. That's one of the main ones. We found the potential of 20% reductions, and this has already been partially captured in 2024. But it will go to the in -- the cost of 2023 will affect us in 2025. So BRL 550 million per kilowatt hour dropped down to BRL 400 million. So that's a significant reduction. And this is a part of the goal I mentioned earlier, the BRL 550 million. There is another variable that we mentioned, which is the company's size. And as you can see, we reduced to 620 full-time equivalents. So 620 positions in our human resources structure, so a headcount of 17,080. And optimizing our organization is an initiative that will continue not only because of the concessions that we mentioned that we're no longer continuing. For example, with [ barges ], we have 900 people. And our expectation is that -- I mentioned MSO, but in [indiscernible] you're going to see that cost will be stable. Of course, there's contract cancellations, which will push the cost up, but our structure is becoming leaner and more optimal. Our own holding company, we had 300 people -- 320 people. And now we're operating with around 200 people in the holding. So about 1/3 reduction. So again, our structure is becoming leaner. And we understand that by 2025, this is going to be even more evident. So we're working to reach 38% by 2026. And our mission, our internal challenge for all of our employees is to reach this goal earlier. So I think that gives you a little bit more information about our cost optimization strategy.

We also have to mention three other efforts that we have been making for some time. Two of them should conclude this year. One of them is already ongoing. As is widely known, we want to have auto service in 100% of our road. So this is an effort that will help in reducing our headcount and controlling costs, as Miguel mentioned. So we may see a partial impact of that in 2025 and likely to be even stronger in 2026. This is a strong growth avenue. In the supply area, we're also using more modern techniques that has allowed us to capture gains in how we negotiated with our suppliers at the past. So these results will appear gradually as contracts get renewed, and that reduces CapEx, OpEx. There is a 1% to 2% gain on contracts that we have. And of course, that will have a significant impact to our efficiency. And finally, this might not have so much of an impact, but we're also analyzing if we're going to outsource some areas of the company. So these are just a few other specific examples of what we're doing. So this is part of our efforts to reduce our costs and improve our ratio.

The next question will be asked by Rafael Simonetti from UBS.

I think the main points have already been discussed. What are your main thoughts about this macroeconomic scenario? How do you feel when you have a scenario like this? Are you more selective in your investments? Do you try to reduce CapEx or do recycling? I'd like to understand what the company's strategy is. And if it continues, will that change the way you work in any way?

Thank you for that question, Rafael. Of course, the macroeconomic scenario in a company that works with infrastructure and that has the funding commitment, that does have a direct impact on our appetite for investment. So I think we will maintain our strategy, we're trying to reinforce this all the time. Our investment criteria is very selective. So we showed our discipline in 2024, and it will continue in 2025. Of course, there are profitability requirements. So this is more affected by the macroeconomic scenario. So our capital cost obviously reflects the current scenario. So for all of our investments, we will continue having a spread above our capital cost, which will allow our business to have the right levels of profitability. And this spread, in a worse macroeconomic scenario, will tend to be broader. So we are more selective with the minimum profitability criteria when we allocate our capital. And besides that, we're also doing very rigorous risk analysis. This is something that the CCR Group has been doing it. We want to have a very concrete, detailed and precise understanding of the risks we are taking. So the risk analysis is using statistics, sophisticated methods due to pricing and restructuring the portfolio, as you saw that we started to do in 2024, and that is being executed in 2025 with removal of [ barges ], MSVia and two new concessions, one in a market that we know very well in Sao Paulo and the other one that the group knows historically in Parana. It all relates to our risk assessment. So we're seeking to improve our risk to return a proportion in our portfolio. So we're very driven and disciplined in doing that. We know that any decision to allocate capital that doesn't follow these principles can be detrimental to the company's position. So that's our strategy. We're still paying attention to the opportunities, but we're very cautious. Regarding recycling, I mentioned that with higher interest rates, recycling in itself for the Brazilian market has an unfavorable factor, which is the current rate scenario on the selling side. This is partially true. And it's very well defined in the case of airports, in which a significant part of the revenue over half of the EBITDA for this platform is abroad and is indexed in U.S. dollars. So if rates are detrimental in Brazil, when the dollar is at a higher price, it will be more favorable for our assets abroad. So in relative terms, that gives us better options and gives us priority on what options we have.

I agree with what Miguel said. We're still analyzing opportunities and what we had ahead of us in the market. We have a lot still to come in mobility, and our pipeline is very extensive. We are still waiting for the results in MSVias. But we're looking at this on a case-by-case basis, we're very cautious, very selective. And we're looking at the returns we are requiring. And this, of course, is affected by the macroeconomic scenario and interest rate trends. So we'll continue to be active, but we will be very cautious and selective.

Gabriel [indiscernible] will ask the last question.

Just a question about your demobilization expenses and the new legislation on road animals that you mentioned in your release. What do you expect these expenses to be in the next quarters? Will they come down? Or will they continue being seen in the next results? Just to understand how recurring these expenses are.

Thank you, Gabriel. Flavia will go into details.

Gabriel, thank you for that question. The company had the opportunity of putting these details in our earnings results, but I'll talk about the costs that impacted the company. Demobilization, we're talking about [ ViaOeste and barges ], which are 2 assets that are concluding their concession. So this is an impact that will not be in the next quarters. Labor provision, we saw rulings in labor suits have been coming faster. So the company has adapted its management. And these amounts under discussion is put in the fourth quarter results. It is recurring, but it will definitely be much lower amount than what we saw in the fourth quarter. And when we talk about provisions for road animals or animals on the road, what we also saw was that there was a ruling in the Brazilian Superior Court of Justice, which changed how this was provisioned for. So any accidents due to domestic animals, regardless of the cause, will require road concessions to be held responsible. So we also had a higher provision in the fourth quarter to adapt to this new reality. And the remaining provisions will be at much lower amount. So yes, we're treating these costs as extraordinary one-off costs, and you will not see this in the next quarters.

This concludes the question-and-answer session. Mr. Miguel will now provide his closing remarks and end this call.

Very quickly because I think we went a little bit beyond a lot of time. But I'd just like to say that as Waldo said, we're still committed to implementing our strategic plan. We're focused on creating value. We're focused on having profitable growth with a robust balance that will continue to ensure that we grow and with the sustainable leadership that we have never left behind. But this is sustainability creating value. For example, in energy, we're reducing costs and moving to a renewable source of energy. And I'd also like to say that 2024 was above all, very important strategically. Regarding the 2 assets that were liability for the company, will be closed. As Waldo said, this applies to [ barges ] and MSVias that had negative results. This was almost BRL 500 million in negative results, which are now resolved for 2025. As of next week, we will stop providing the services in [ barges ], and the MSVias bid tender will be in May 2025. We also have 2 new assets that we consider to be premium. When we selected our investment targets in 2024, we were very rigorous in our selection, and we got the assets we wanted to win because we understand they are strategic, premium and scarce in the market. So this will also allow us to deliver on the commitments that we have with the market, a high single-digit growth and maybe even a double-digit growth. And this is our commitment for 2025, so around 10% growth or even maybe beyond. We believe that, that can be delivered in 2025. So thank you for your time. Thank you for the time that you gave us in 2024. We're just starting this year, and we'd like to say that we're very driven, very engaged and very excited for everything we have in 2025. And this will consolidate our 2-year transformation, creating explicit value in a very concrete way. And this is what we will do in 2025. My warm greetings, and we'll see you soon.

This concludes CCR's conference call. If you have any additional questions, you can send them to the Investor Relations team through [email protected]. Thank you, and have a good day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]