Moura Dubeux Engenharia S.A. ($MDNE3)

Good morning to everyone. I'll start our presentation of the results of the first quarter of 2026 of MDNE. I'm Alan Aquino, and presenting the results is Diego Villar, CEO of the company; Diego Wanderley, CFO; Diogo Barral, our Director of Investor Relations. [Operator Instructions] I'd like to also mention you that we -- any declarations that may be made during this conference are based on the premises of the directors and management of MDNE. Future considerations are not guarantees of performance as they involve risks, uncertainties and depend on factors which may or may not happen. Having made this disclaimer, now Diego Villar, please go ahead.

Good morning, Alan. Good morning to everyone. Once again, it's a pleasure to be here with you presenting a little bit about our results. We also have Diego Wanderley, Diogo Barral, CFO and our RI Director. The numbers in the first quarter already indicate -- let us take us to the understanding that of that, which we mentioned during the follow-on and the conferences to which we've been invited and the interactions that we've had with our investors and to our site, we've shown what would be 2026 within our expectations. And I think that one quarter of this year has already been very well reflected in the first quarter. So we're going to talk a little bit about that, talk a little bit about each one of these operational indicators and financial indicators and give a little bit of visibility to you all. And at the end of this presentation, I'll come back for Q&A, and we can go deeper into any questions or doubts that you might have. The first quarter, we closed BRL 1.3 billion in launches. Most important is to point out that we have accumulated in the last 12 months with BRL 5.5 billion in the last 12 months. And they've asked us what would be the size that we were looking at. We said in the medium term, we'd be seeking a level of BRL 5 billion. So more recently, we talk about BRL 5.5 billion. And now we've already completed that goal, the said goal. But some data that I wanted to bring to you as a highlight of our capacity to develop products and deliver them with excellent performance, sales performance very quickly. As every time I bring -- they bring me questions or doubts about demand with buying capacity to buy land and develop products, I said that you're looking at the wrong way, which has never been a problem. We don't believe it will be demand for the MDNE group basically because of everything that since 2009, we have been educating the market and passing information and been showing that there's a positioning of MDNE, the strength of its brand, the strength of its -- the quality of its land and of its team and of its products and to develop the market in the Northeast, especially over the last 5 years of growth that we've seen here, growing above average over the last 5 years. So BRL 5.5 billion, we reached this level. And what we now have to do is to rebalance this. We're very much more exposed in the closed condominium market, which is positive, BRL 4.4 billion was done with condominium market with the lower risk of execution, financing and leverage. So we've opted for that model. Always the ideal to be exposed to all of these options. BRL 1.1 billion was through incorporation or normal development model. And then we're looking at Mood, our mood product and the level of BRL 1 billion. We made a little bit more than BRL 1 billion with the number of sales of Unica, we've already had that. But over each quarter, it will be -- been gaining strength and size and mix of products and the MDNE group close to BRL 5.5 billion, which we've already had. However, balancing the different balance of products, not because we don't want to be exposed in the condominium market because I think that it's more prudent and more cautious to have 2 strategies to follow more in this balancing of our portfolio. First of all, because I believe that the condominium market will not be doing BRL 4.4 billion consistently. So we have caution in that area. Of course, if we can do it, we'll do it. But the second point is it's a business model which depends greatly on labor, specialized labor. And more and more, we're seeing having difficulty in training people, hiring people that are able to maintain this growth, which we have been delivering. Here, I -- the level of growth, the operational capacity of the company to develop business. And so then the other end is selling BRL 1.1 billion in the first quarter is a huge jump compared to the first quarter of last year. The company is at another level. And as I mentioned a year ago, I said that and you can see the results. Now we're going to go to the next level, and we're going to be delivering this within the next year. We're improving what we've promised, and we reached a level of BRL 4 billion of net sales in the last 12 months, 71%, almost BRL 3 billion in condominium and 29% or BRL 1.1 billion in development. That's what Mood is. We launched it and we sell it, we launch it and we sell it. And on average, you can see everything that's been sold in that market has been sold in the condominium market, as much as we're used to, it's been -- sales -- the cycle that's a little bit longer. We've launched Plaza, Corporate, Moura, several projects with very high price levels by high tickets, BRL 10 million, BRL 12 million, BRL 14 million per unit. And we believe that this is sold 100% in a few months. We don't say it's not viable. But even so, we think that it has to be cautious, which is what brought us to Moura Dubeux to a velocity of sales above 50%. And the best VSO and the best sales velocity SOS is among the 3 best losing only to the Minha Casa, Minha Vida company to have another dynamic, which we're also looking at now through our Unica brand. We reached a level of BRL 680 million just in the first quarter. But I think what's most important is not just growth, going just to grow is not anything that we should see and that's something that Moura Dubeux is looking. We've grown with efficiency. We reached a gross margin of 40%. It's what we expected, but it's not normal in the market, not what we see in the market, the growth of the sales with the growth of margin. It's not just in the real estate market, but in the market in general. See people that have grown they said that they're opening -- they're working with smaller margins so that afterwards, they can grow and afterwards, we improve their margins. But in our case, we've been able to do both. BRL 2.5 billion was the revenue of last 12 months revenue, BRL 1.6 billion came from the condominium market with 62%, 38% from the development, almost BRL 1.71 billion, almost BRL 1 billion over time, which is not going to lose its relevance, but we believe that will reduce the relevance, the condominium and grow the development, but as the MDNE group with the Unica brand will grow. So I think what's most important during the follow-on -- most recent follow-on, we commented with you that if we exercise almost the totality of the offer, which we're looking at, which is close to BRL 500 million, we had the capacity to deliver, this year, a number close to BRL 600 million of net profit. We had the basic offering, which we have that we can still have BRL 500 million in profit. So here, deliver at least 1 quarter of this number already in the first quarter, BRL 156 million of net profit. It's the biggest net profit for 1 quarter in the history of the company. It's not -- it hasn't been very long ago and the results talked about BRL 150 million profit for the year. That was the number that those of you who have been covering the company since the IPO, that's the number that we spoke about, which would be the stabilized return on the company of profitability per year. Looking -- and we reached cruising level in more than 6 years since our public offering, and we've already delivering a profit -- annual profit per quarter, which is more important than the number is the net margin, 25%, a return on assets of 27%. It's the biggest -- highest level of any listed company, and it's hard to compete with Minha Casa Minha Vida in terms of profitability. But in the game that we've been playing with the biggest return on 25%, 27%, BRL 120 million of net profit in BRL 505 million in net profit in the last 12 months if a point which I always have called attention to, which is it's not something that we're worried about, but it's a question of caution. We don't want to leverage the company. We have a company with very low leverage, 4% of net debt to equity, it's almost 0. However, in the medium term, it's difficult to be -- I'm very conscious to match growth as we've been growing with generation of cash. However, my major job today from the standpoint of financial indicators is to revert cash burn to cash generation. It's not going to happen in the short term. We have a lot of business trends so it's not going to happen in the short term. The growth of Unica in the short term will consume cash and has that has become a director of generation of cash with CUDI and so forth. So we see if we need to do a follow-on or an IPO, we'll be able to finance its growth. BRL 122 million of cash consumption, not including dividends and had a close of last year of BRL 200 million in dividends this year; already delivered half in the second half dividends will become in the second half of 2026. These are the principal numbers that I wanted to point out to you that I wanted to highlight from the standpoint of operational and financial. I have one more slide I'd like to mention before going on, passing it over to Diogo about how -- which is Unica, have 4 projects already underway, 2 in the first quarter, which is the Wave Boa Viagem in Pernambuco and our Estilo Boa Viagem also in Pernambuco, projects in which we are 50-50 partners with Direcional, which is there, even though they're doing the operation. And Unica Veredes, which is already heading for the issuance of its RI, have more than 50 reserves -- strong reserves in this project, strong reservations. And the only Unica Fortaleza recently launched and already with several pass-throughs with Caixa, and we have in a very short period of time, 4 projects going to deliver the guidance that we have -- going to deliver the guidance that we talked to you about during the follow-on. So this is a reality. So in case you had any doubts about the capacity to quickly develop projects and pass along the results. I'm going to pass it over to Diogo Barral. I'm going to talk to you about our operational highlights and then go under with our finances. And then at the end, I'll be back to come back and talk to you about any questions you might have. Have a good results call to you all.

Thank you, Villar. Good morning to everyone. I'm going to pass through a few more details of our operation. Looking at the launches. In the first quarter, we launched BRL 1.3 billion, more than tripling the volume in the first quarter of last year. And we also advanced 32% in comparison to the third quarter of -- first quarter of [ '20. ] The graph on the side, we see BRL 5.5 billion launched -- as Villar mentioned, this breakdown in relation to the condominium and development and in operation, we're doing very well. We had 20% in relation to the full year of 2025. Following 2 sales, the company has sold a little more than BRL 1 billion in the first quarter. We grew by 88% compared to the first quarter of last year and 48% in relation to the first quarter -- the fourth quarter of '25. With the vision of the last 12 months, we reached the level of BRL 4 billion, and we grew by 14% in relation to the year of 2025. And on the right-hand side, we always bring what we believe are the 2 operational indicators, which are most relevant and which pass safety certification of security to the management team that we're following the right strategy. And during the year, we see both numbers continue at very high levels, very healthy levels. Cancellations, even though we've handled our volume of launches, have increased the number of launches. A year ago, we had 9% cancellations, and we're now down to 4% of our gross sales are cancellations. And when we look at our sales velocity, it continues above 50%. And in the consolidated for the last 12 months at a level of 52% and our VSO of launches SOS of launches is performing very well in the last 12 months and closing the first quarter with 56.8%. Looking at our stock, we closed the period with 3,850,000 mid 2 very strong questions about our volume of stock. We have a quantity of stock, very low quantity of stock compared to our total volume. Today, it represents only 3.3%. It looks at the last quarter, nominally, we have been able to lower even delivering 4 projects during the first quarter, going from BRL 136 million to BRL 128 million to occupied properties. And also our land bank is in a very interesting level. We closed the quarter with 12 months of stock coverage. We also closed the quarter with 57 properties, BRL 10.4 billion in potential sales volume. And the most important is we're continuing in the acquisition of land through swaps, with 65% acquired during -- by swaps and 57% of swap in cash. That's the [ 24 ] on our development model and [ 41 ] in the condominium model. We also delivered 4 projects now in the first quarter. It's very important to mention that the stock are ready to sell. These 4 projects are very well sold already, 3 of them are 100% sold and the other one above 90% sold. During the year, we're planning to have 12 more buildings reviewed for delivery, 4 in the corporate development model and 8 in the condominium model. Also bring the projection bring this number the projection for the next years. We've been able to look at these numbers in 28 8 for '29 and 10 for 2030, 17, 18, I'm going to close with the operational numbers, and I'm going to pass it over to our CFO to talk about some of our financial numbers.

Good afternoon. Good morning, everyone. I'm going to look at the highlights, the financial highlights, beginning at the net revenue. We delivered BRL 650 million in the first quarter, a growth of 43% for first quarter '25, a small fall in relation to the fourth quarter of last year. But it's important to mention that points first in relation to incorporation, the development model, which had a small fall in relation to that quarter, BRL 240 million in this quarter compared to BRL 240 million in '26, '27 and '25 and '26, Mood has begun to participate more in the net profit and the gross profit rather than the incorporation higher level high-class development, which we -- until 2024. And starting now, we are beginning to see a change in the participation in profits. Mood is not as important as the high-level incorporation development projects that we had in which we have participation. And we've been increasing our results to recognize. On the next slide, we've grown quite a bit this profit to recognize. Even though we sold more, the profit still not as evolved because the revenue of the company has come in a little bit lower. In the case of condominiums, it's the dynamic of the profits of the properties that we recognized 3 projects. We had the return of the Infinity in Fortaleza and the turnover of the 2 beach class Pajia and the beach class Milages. These 2 beach classes were 100% sold. The margin is almost 100%. And Infinity had a [ person ] of cash, not as much cash income since the revenue was lower, contributing to a better gross margin as we'll see looking forward. When we look at the accumulated for the last 12 months, we delivered approximately BRL 2.5 billion in revenue, a growth of 8%, looking at the -- with the revenue from incorporation running around BRL 1 billion. Diego mentioned that the Unica has brought results to our financial statements and our balance sheet. This revenue should come in over the next few years. Whereas the condominium market has a revenue of BRL 1.5 billion. Look at gross profit. We delivered BRL 260 million growth compared to the last quarter of '25 and a growth of 11% looking at the last quarter of '25. Most important, the gains in gross margin, which we already include with interest rates, interest capitalized interest, we look at the last 12 months, growth of 12% in profitability, a margin, which is very stable when you look at several quarters consolidated. We've delivered 38% of margin, closer to the standard of margin of the company, but also an important growth of 1.5% in relation to the full year of '25. The partition of [ 20 ] is 35% incorporation. The development margin is linear as was in the last quarters, and the condominium income has a relevant impact as we recognize. It's important to remember that even though we have recognized 3 receipts, we have more coming through in the next recent quarters with the installation in the second quarter, which is natural in our dynamic. We always launch in 1 quarter and recognize it in the following quarter. This is the ideal time to form a group to call an assembly and do the installation of that condominium. And now looking at the expenses on the left-hand side, the commercial expenses. We had a volume which was very close to the fourth quarter with BRL 57 million. However, we sold much more. So we're able to dilute greatly that the fixed costs of that and part of the commercial expense is marketing, and the team commercial is more fixed cost. That's important. We delivered 5.3% in the quarter. And this also happens. When we look at the administrative expenses, it was also a reduction, nominal reduction when we consider the relation with the fourth quarter '25. We delivered revenue almost -- well below 2.7%, which is well below what we've had in our model and viability, which shows a little bit how much the company has been able to grow the operation, at the same time, bringing efficiencies. We've been able to be very smart with our expenses. We have a budget which is very tight. And when you look around the market, you'll see that the level of expense representation of our SG&A compared to revenue is very low. Remembering that we do not have -- we do not call revenue everything that we see because of the dynamic of a condominium -- when we look at the condominium model, it's even lower. And we get to the level of 2.7% when we look at the first quarter of 2026. Looking at the adjusted EBITDA with the interest -- capitalized interest and we look at BRL 160 million in the quarter. We accumulated BRL 570 million in the last 12 months, which is 17% increase compared to 2025, which is an important increase with the addition of only 1 quarter, a gain of almost 2 percentage points in our operating margin, which is very relevant. One thing that we mentioned in relation to dilution of expenses contribute here to the gains of the company. We're still not -- we still haven't reached a stable level of the profitability we've been running. So we still see space to improve. We're going to continue to do what we've been doing and be smart with the expenses and have an increase in margins when we look going forward. Following the net profit, as Villar mentioned, it was the best net profit per quarter, BRL 156 million. We had a very important margin of 38%. If we look at the last 12 months, we delivered BRL 505 million in net profit, which is 27% higher than in the 2026 profit. So we haven't changed our level of profitability. And we're still not generating the profitability that we show -- our orders show as we can -- with the size of the company, we have a dynamic of profitability to recognize when we get to a stabilized level. And the most important for us is to have a return for our investors. The cost of capital is still -- has been very high here in Brazil. And for us, it's very important to have a differential return. So we still -- we've been able to do that at 27% over the last 12 months, very much in line with what we had in 2025 and a little bit above what we have shared with you when we shared the expectation. In fact, operation has been actually doing much better than we had planned. The margins have been better. The size of the margin has been in line with what we have been saying. So that we close our results and we talk about the results to appropriate on the next slide, Alan. In the first quarter, we closed with BRL 436 million. Talking about incorporation, even though we sold more, the revenues doesn't really all come to the results. There's a lot of work to develop. And with that, we've grown by 11% with these results to appropriate to recognize. There's a gain in margin. The Mood has a little bit better margin than the high-level development that we have been running, and we've been able to add 0.4% of margin according -- recognizing in our results. The condominium and closed selling, we had BRL 41 million of profit to recognize much in line. And the administration fees remained in line by 6% with BRL 436 million with the results to recognize. And to close the financial results and look at the Q&A, we bring our cash and our level of debt, remembering that we did the following in January. Had [ free ] of fees and taxes, BRL 146 million in the cash in the company. We paid BRL 100 million in dividends that we had mentioned in December of '25. The operation burned BRL 126 million in cash. Altogether, we had a variation of BRL 240 million in our net debt, which closed the year at BRL 324 million. And now we closed the first quarter with only BRL 84 million in debt, which is only 4% compared to our net equity, which we consider a very, very healthy level. We always talk that we want to run the company between 15% and 20% of net debt to equity. And so this -- we don't bring any risks to our investors, our shareholders. And so we should still burn some cash because we're growing quite a bit. We have lots of land which we have been paying for; projects which we have already launched; and we still have the payments to make on the land. And I think that we're -- this year, we have paid double land payments what we paid in the fourth quarter, which is natural due to the growth, this volume of land. And Unica, as Villar mentioned, we're going to need a little more capital and also the follow-on came to capitalize that. So we expect -- that was expected, as expected to have a cash burn in the fourth -- it's a quarter when we should generate cash. But we should have -- and we should close the year close to 15% as we had commented in you. But just to give you some important data, and we are accompanying the cash flow here every month, every week. Together with Diego, we have a weekly meeting about that. And the model shows that we are close to 2% ahead in reality of the product model itself. So we're still confident that the cash situation is at a healthy level or even a little bit better than what was foreseen. And just to remind you, we have BRL 150 million in dividends, and we'll pay BRL 100 million in the second half. And we have space if this net debt remains low, pay even a little more than BRL 150 million next year, announcing more dividends. We were anticipated that the model has BRL 150 million in the model, and we closed the year with BRL 300 million in dividends. So we have to look at the operations, how we're going to arrive at that level, leaving space as the model shows, we have space to continue in that direction. I'm going to close now our financial points, and we'll go on with our Q&A. So thank you very much.

We will now start the session of Q&A. [Operator Instructions] First question comes from Ygor Altero from XP.

Two from my side. I want to understand how do you see the cost of materials, pressure on materials costs and if you have space to pass through the increase both in the condominium model and the low-income market, and this scenario can bring the company to revise its mix of launches. I see you talking a great deal about growing the low-income area. Does this change your mentality? Or is this still continue your thinking? And the other side I wanted to mention is if you see any impact on sales velocity in the condominium going forward since this is a segment that has done very well and you've been running this very well in recent years. If you think that, in any way, that this can impact to be impacted by this?

Ygor, we had a little technical problem. Can you repeat the first question, please?

As I mentioned, the first question, how do you see your pressure of cost of materials cost space to pass through these costs your condominium in low income, maintaining your margins? Is that clear?

Yes, very clear. Thank you for your question and for opening our Q&A. We have to mark a new road show with you. It's been a while since brings me an agenda with you guys. So we need to do this. First part of the question about our cost with the variation of this. For now, so far in the Q1, there was nothing significant. I have been accompanying very closely negotiations and variation prices for materials due to the shock, the petroleum shock, the momentary shock. I do not believe that this is a long-lasting -- it's very much a momentary thing. and we're going to be of no matter the opportunities to try to bring -- show me your composition of cost and how much do the fuel cost have your materials return derivative, and we'll talk to. But so far, no one has brought me any breakdown of why they should be raising their prices. So far, we have no prices to negotiate in relevance to the market, [indiscernible] Nobody has any relevance in that account. It's just a commodity because nobody buys it. It's more the retailers that buy it. I'll give you an overview. The impact of this above the NCC is irrelevant so far in our medium and high-level construction, just to give you an idea, approximately 1%, the margin of the NCC. That's compared to the basket of prices and that which has been brought forward and that which has already been included. Closed condominium model, this is about the cost. This is cost, not margin. The condominium -- the closed condominium model, we always have space to raise an additional fee on the amount of the quotas, one of the reasons for an increase of an extra fee would be situations like this. So the condominium is protected against this type of increase. The Mood model, we've had in our viability studies, 5% of contingencies of which we only -- is only removed at the end of the project when the project is delivered, and we have a process of changing that number. Up until this moment, we're very well protected in both segments. As far as your question in the first part of your question, which is about the pooling of sales, due to the correction of these costs. We do not put all in the model the correction of the cost, which is equal to the portfolio and the stock. We're very conservative. Sometimes we only include half. If it goes up by 6%, the cost goes up by 8%, and our viability of correction, and the portfolio goes up by 4. That's how we structure the viability studies for -- to protect our results. In fact, if you look at a historic series from 2000 until now, looking at the gross margin of MDNE, the correlation exists. However, variation, the level of variation is many times higher, how much the index has increased. So this protection did this variation. As for the dynamic of demand, we've never -- and I know I've mentioned this to you, in fact to you personally. In our numbers, we always make the decisions. If the price of a sales price brings margin within what we desire and more and more, we've been very demanding in terms of margin to help in the visualization. I would say that we always accepted this margin. We've always left part of the price gains for the client. And we've always judged this to be important because over the cycle of development and delivery, our new clients, he sees that it was worth it to invest in a product of MDNE and it went up in value, it was a win-win. We've never taken the prices to the maximum limit so that all the results goes to us and nothing goes to the client who believed in the beginning of the project. So our SOS is very strong. It continues strong. The falloff is very relevant from 55% to 52%. The base increased greatly, and we raised our prices. La Plaza, which was launched last year, which was approximately BRL 20 million, BRL 21 million, and it came in at BRL 23 million, the same product with the same areas. We've had a real gain in prices. Even so, the SOS has continued very good. I have no concern, not looking at the current situation will have an impact on demand. In fact, going to the second part of your question, which I answered with this is also the fact that many times the question come about our concern regarding demand, land bank, and it should be much more tied to the construction itself. And I would say it's not just the view of the impact of the petroleum shock that we've seen recently with this war between the U.S. and Iran, I would say it's much more looking at the perverse logic that we live in our country, which does not impact only the real estate market, but in all industries that we're always tied every time we grow and we grow for long periods of time, we then hit a ceiling of availability of productivity, not just offering of labor, but labor that's able to grow above proposed growth productivity. In fact, the logic is perverse and it hurts the Brazilian industry. Everyone is suffering with. For example, at least anybody is being transparent every day, it has been more complex to find labor, productive labor cost, labor, not because we have full employment. In this concern, no concern in losing their job. And when he loses job, the public policies in our favor is desire to be unemployed for a certain period of time and informality also permits that. I'm not optimistic about that unless, as I heard recently a proposal that was very reasonable, if we have CLT more than 80 years in existence, the labor laws, it's certainly out of date. And the other option is that if you don't want to have a CLT have contract and lower the number of social benefits, at least anybody who's receiving social benefits should work as a volunteer in the public environment, schools or health or whatever so that we can remove this perverse logic of not incentivating people to go to their first jobs or jobs at the bottom of the pyramid. I think that these questions should come more along the line of the other logic, which is not we are seeing any problems, problems at all.

Next question comes from Herman Lee of Bradesco BBI.

One question from my side. I want to know about your expectation of launches for the year. You've been very transparent about this, but I want to see if we had any possibility of an increase due to demand. And also during the effect of Unica, you have an increase in the participation in the company, if the more stake has an effect of launches which is much higher. I just wanted to understand a little bit more about your current expectations for the rest of the year.

Thank you for the question. Yes, in fact, have communicated this starting at the moment that we've changed share of the shareholder makeup within Unica, we have not changed on the projects, but there is a project has increased and so MDNE in these joint ventures of the Unica projects. In spite of that, we have no major expectation of growing above that, which we've announced, possibly a little small relevant growth above that, not lack of financial capacity. The company is completely deleveraged. It's not due to lack of market or land bank or that we're concerned about sales velocity compared to the related to acquired stock. We have stock. Many of them are in the phase of construction or launches of more than 80 projects that we have underway. I can count on one hand those which have sales performance is below our viability studies. It's natural. We can't hit everyone. But in Mood, we have -- on the Mood that we haven't hit, I also can count on one hand those that are below our expectations. The are below the curve, but well below the level of the rest of the market. What we're delivering is very reasonable. And what limits this growth, it's a question and a genuine question of myself and all of the management of the company and the quality of the product and its capacity of execution within our parameters of viability. And it's not just cost. We're talking about time period, quality, perceived quality, client quality. We're not going to be unresponsible. As we did over the last 5 years, just like we've done in the last 5 years, done very consciously and responsibly acting, there's no way to change this new base to not be responsible with this new level, productive limit. I even mentioned in the highlights -- operational highlights that the rebalancing of the condominium is not due to demand. I have a concern that the demand is still strong. I have a concern to production. We have to be cautious, try to gather optimism and caution. We always make decisions with this premise. And I think that more than ever, we have to be very cautious with the production at levels greatly above that, which we've been delivering here at Moura Dubeux.

Next question comes from Luis from Santander.

I wanted to talk a little bit more about the Unica sales. When I see these launches in the same city, but the level of sales of each one was quite different, they were both launched in the same city at the same month. And I want to understand what justifies this difference in these 2 products, in these 2 launches? And also understand along the same lines, how do you see -- you have 4 launches in the second semester. How, do you see the competition in each city? I know it's perhaps too early to talk about the competition in the second half -- second quarter. But how do you see that so far?

I'm going to let Barral answer, but I'm going to answer the second part of your question. Barral, can answer the first part of your question again.

First of all, forgive me for not greeting you. What we see here in the market of Moura Dubeux, the low-income market, it's the second largest market in Brazil. The demand -- gigantic demand as a percentage -- percentage -- as a percentage is the biggest demand, the less competitive market, especially in the third category, Level 3 market. In the lower level, there's a lot of developers, very small level operating in that program. In any event, houses and apartments and every type of -- with concrete walls, structural walls, everything, every type of construction method in 2025, the third-level market, which is where we're most [indiscernible] is busy in terms of income and capacity of indebtedness, noncompromised income to acquire a property. In Sao Paulo, it was 78% due to the success of [indiscernible]. In our region, only 20% of that demand has been reached. So apartments is up to BRL 400,000 in the third category, which you see the MDNE in Sao Paulo in the city, a product, which is not a low-income product. It's a middle-class product because it's a very huge demand with the price -- the interest rates for the individuals where you have interest rates of 2.5% as we have currently, where there's more space for us to grow and exploit. What I see at this current moment expands certain capitals in a way that is significant. It's not a product that competes directly with us. It has a line of products until the moment has more compact apartments with 38 square meters and with less attributes, less relaxed -- none have almost no garage space. It's a different public than the public in which we're positioning ourselves. I personally feel that in our region, the dynamic does not work in the same way as Sao Paulo because my limitations of garage space is important in Sao Paulo, it's a phenomenon, one of the best capitals where you have the infrastructure of public transportation here is still a very big different have parking space. So it's important that apartments like 59 people approve, they have motorcycles. But we're still not in this segment specifically, our product attends 40 to 44 meters. We have with suite -- apartments to suite. Normally, these apartments do not have suites, but we compete importantly in a strong brand, which hits the penetration in our region. And again, our market share has space for both. And we're here disputing with different types of products. That's the first -- in the first part of the sales performance in Boa Viagem and Wave, I'm going to let Barral talk a little bit about -- he's been following the more closely. 2 products with directional, I'm going to share with him a little bit.

Luis, thank you. The 2 projects, the style is approximately 50% to 55% sold and the Wave is close to 20%. What's the difference in relation to these 2 projects. We look at the operational side of the company, we give this disclaimer. The steel was launched about 1 year ago. And that's one reason why it has had a higher level, much higher level of sales than Wave and Wave was only launched in the first quarter of this year. So the difference in the volume of commercial of these 2 projects is basically both are consolidated bidirectional, and we are giving equivalency with the company is basically that the style has had a longer period since its launch and Wave was launched now during the first quarter. As we -- since we joined these 2 projects now -- just now during the first quarter, we have been very careful to add them to our table of launches. We have 8 projects launched in the quarter, but we give a disclaimer showing that still has more than -- a little more than 1 year since its initial launch.

Next question comes from Gustavo Cambauva from BTG.

Two questions from my side. The first one is regarding Unica. What you see on the way of synergies in this first quarter of operations together with Direcional? How has that been going and vice versa? And also to see if you can be able to discuss the level of launches for 2027? That's my first question. And the second one is a follow-up regarding Wanderley in his presentation. In what phase do you see the company is today in this process of growth of land bank? Do you see the current level in both in size and composition as the ideal level, looking at what you have in the way of a pipeline over the next few years of launches or has it been growing above the few years of launches at the next few quarters? And are you going to see a lot more cash going out to reinforce that land bank in the next period?

Gustavo, in a joint venture with Ricardo at direction, it's excellent, going very well. They are the partners that everybody wants to have a serious company, very competent; with the level of humility, incredible level of humility. I can just say that here, we have a great deal. We're very proud and we're much more really surprised in the way they conduct their business. We're very happy with them. The decision has several different routes in the decision-making and the purchase of land. What is the problem with the certain lands, decisions done together are complementary. It's different; very difficult to have overlapping work. There are some of them we make some final adjustments. There should be 20 or 30 days, I haven't spoken to him because there's been nothing -- the type of disagreement. The team is quite well oiled, and it's flowing very well. So I have absolutely nothing to talk about. I'm not saying that because I mean public, but I also say this privately. I have nothing to worry about in our business, no points of attention or adjustment that I should make. I'm certain that our joint venture will be a long-living one; and the initial result is exactly what we need. For next year, we already have given the guidance of what we expect to do next year. We already spoke that where we want to go. His team is motivated. Ricardo is very -- even more conservative. He doesn't give guidance. He's very cautious. Every time I say he always giving guidance, let's be cautious. Let's not give guidance, but we give the information. In the last 6 years, we've complied completely with everything that we have promised. The pipeline is already out there. No doubt -- there's no doubt at all that this will happen unless there's some huge macro change in the program, which I do not believe. No matter who comes in as the president next year, it's a program that will continue. It's a program -- it's a government program, not a program of the current government. So this is already established. I'll let Wanderley make his question and let answer the third part of your question.

Gustavo, thank you for the question. Yes, of course, we have a level of land bank, which is quite interesting. As you mentioned, it already guarantees 2 years of business plans. We have been able to connect very well the beginning of the payment of these land -- plots of land with the launches of the property, we leave a small cash payment upfront to close the deal, and the principal amount of payments paid over the first year of the launch. So we burn little very little cash, and we'll have a return during the construction of the condominium when it's a high-level property. This also helps us -- a question of the management, capital management. So I think we're very comfortable in relation to the size of this land. Everything that we would launch in these projects, we add to our land bank so that we're able to go up to this BRL 10 billion, which is very comfortable to be able to make BRL 5 billion per year. There may be 1 quarter when we close BRL 11 billion or BRL 12 billion or BRL 9 billion, but we can be running in approximately BRL 10 billion in land bank.

The next question comes from Elvis from Itau BBA.

Two topics here about the condominium market. I want to understand from your side, from your point of view, what is the potential increase very much at the beginning of this. We still don't have certainty, but the tendency that you see any risk, commercial risk? If, in fact, there's a great increase in these extra fees and wind up making the clients here through the condominium model, do you think there's any risk in that sense? And the second question is cash flow. I wanted to understand from your point of view since Unica has already part of that is now attached to Unica model capital -- working capital going forward. I want to understand how do you imagine the need of the dynamic of cash generation for the next few years? And if in any sense, do you think this will change what you have in the way of expectation for the payment of dividends?

Okay, Elvis. First, it's very difficult to respond to the first part, but that's the total certainty. If we look going forward and put significant variations in the NCC costs and I answer your construction cost index, what has been happening and the level which is happening, remove demand, I would say no. I gave an overview of why that was. I wanted to remind you that in 2022, we got to -- we accumulated a 12 months more than 20% correction in the index of construction costs. And in that year and in the following year, we had growth in sales at Moura Dubeux. In spite of that because people started to purchase more real estate, the demand in our region is still very much undersupplied. From 2020 until now, Mercado in Sao Paulo, the quantity of products accompanied the growth of demand. If you look at the number of stock on the shelf, except for the second [ Goma ] government, it was the same. So we're selling a lot more because the market changed [indiscernible]. In our region, it also doubled in size, but the number of products offered has not accompanied the same level of growth so much so that Moura Dubeux is closer, stronger and the ready to sell stock is on hand. Nobody listed -- listed company has such a low amount of stock on the shelf as except for very small businesses might have a number as low as ours. This dynamic of the real estate in the market in the Northeast, we have demand. And this helps in the absorption of cost increase. Even with extra fees, the real estate arrives at the end to the client who wants to sell it more expensive than what he paid with the correction. So the client has a real gain, and that's what's important. If this dynamic becomes -- the inflation could be 5% a year and the less -- there's no loss of traction, you buy an apartment and 4 years later, the market is lower with inflation than what you paid. So it works. That's what takes -- removes demand at the end of the line. However, in our region, it's not the case. However, there was a huge petroleum shock and index close to 30% that is irrational. It's so irrational that there's no way to give an answer to you what would happen unless we can suppose that for obvious reasons that this is going to create a problem. You're not going to be concerned about the problem of the developers. The country is going to be passing through a dynamic problem that's much higher. But I've always said, and I reinforce here and it's important to mention, that we work in extreme scenarios in Moura Dubeux, which is why we would not leverage the company. That's why we have much more exposure in the condominium market. That's why in Unica, we are going to grow, which is not growing as fast as demand in our area in the shortest cycle. And that's why we look to partner with Direcional because of this caution. If there's some more extreme or recession period in the country, our company is very well protected. Wanderley mentioned that what we have in the way of contracting, we have BRL 400 million in fees. But in launches, we have 100 -- BRL 100 billion, we have 0 nonpayment in Moura Dubeux. So we have very great results for the contract and to focus on a company which is very healthy and which will very quickly turn into free cash. So we're going to diminish our business plan with a great deal of performance already in relation to our portfolio, it's very small. Let me mention something. We did an analysis, an extreme analysis considering the that, which is sold, is not able to be corrected above the NCC index at the stock, which is corrected by the industry and we run out of labor. The impact that you saw in [indiscernible] would bring to the maximum of a difference in value of BRL 40 million in our value, which is both in cash and in results for a company like ours. The decisions which are taken here are always taken based on extreme possibilities against which we protect the company. However, to say that we're going to reduce 5 percentage points of sales velocity if the index arrives at the end of the year. It's difficult to say. That's not what happened in the past. When we say that to try and prove an important number like the one which you mentioned the possibility, everybody says where the interest rates and the dollar are going. Most people make a mistake. And we think it's a missed part of your question. The level of leverage did not change. The strategy is the same. We did the follow-on. We mentioned the need for capital to leverage to leverage Unica. And we see our model in parallel with that in growing the company -- the demand for capital. So what we see today is that 2026 is a year which we're going to burn cash. '27 is a year when we're going to generate very little cash. We're always talking after dividends. In '28 and '29, we will generate a volume, a relevant cash model, which will help us to get to a payout of 50% without increasing our net debt. And in 2030, we reach a stabilized level of generating cash, which is equal to our profit. So at this moment, when you should see -- that's how you should see the company right now. This year, we'll burn a little cash. We're going to close the year between 10% and 15% of leverage, already paying the announced dividend. Next year is considering BRL 150 million that we've already mentioned as well as almost BRL 150 million that we see in the model, we're going to wind up with this 15%. We have cash generation close to BRL 300 million today to BRL 200 million to pay this debt, pay the dividend. And then '27 and '28, we have a strong cash generation to be generating a lot of cash in -- through '29. That's our dynamic going forward.

The next question is from Rafael from Safra.

I have 2 questions that I wanted to hit. First, you've already spoken a lot about this about Unica. I wanted to understand how do you see at this current moment is the administrative structure of Unica will handle the amount of launches that you have and the structures in aluminum? And in what stage you are in that business plan? And secondly, I wanted to talk a little bit about Mood and understand a little bit more these recent changes in the Board where you brought the level to BRL 600 million and the income to BRL 13,000? You see more clients in Mood and if you're able to increase your share of Mood in the associated credit, as you mentioned, which is a volume still very small, very low volume of credit for that.

I'd like to change the question and allows us to think about to give visibility to what's happening. As far as the structure of SG&A at Unica, we have the base already resolved with the headquarters here in our headquarters already set up here in our headquarters. The operational directors finalize our team of development -- product development of launches all already set up, segregated from the MDNE structure, and a lot of things using the structure of MDNE itself. And Moura Dubeux and [indiscernible] as we work with all of the teams that are sit down here in the room, and they work for the 3 companies of the group and in several other areas as well with no problem, that which is only Unica or a product or an operation of engineering area of development, land bank, prospect legalization is the same route. We've got our projects approved in the city government, it's the same direction. There's also a synergy, and we haven't -- Mood is a concrete wall for a long time, and we have several already molds, and we have molds already purchased from Moura Dubeux as well, both for Direcional and for the Direcional Mood Fortaleza, we acquired a mold. It's not from the project. It's the only one which we combined with Ricardo with amounts deducted for these molds within the project. So this is working well. And we have no type of problem with that. The second part of your question was about associated credit and this increase -- in relation to the fourth level of the program. In the beginning, in fact, first projects of Mood and Moura Dubeux, and it was not passed through totally, but I would say 50% was passed through, had no exposition of cash and there was no generation of cash. It's very good for us. But a certain moment when some projects in Mood, which are above Level 4, such as the Kennedy Mood shopping finance by Itaú and by Santander, there's no pass-through because these clients do not go through a pass-through, no subsidy of the interest rate for this type of product. BRL 1 million is the price of a Mood apartment. So it doesn't work and there doesn't exist and it doesn't work. Since we got to this first quarter, we launched in [indiscernible], the second Mood in that city, we decided they're only going to offer one price, the small apartment, Mood Kennedy, Mood shopping and, Mood [indiscernible] Very similar to the [indiscernible]. The first 80 clients, 100% higher than pass-through to the economic. So we've already seen what you're seeing. With this change in policy, with this change in increased maximum prices, the changes in incentives made by the government and the biggest pass-through in the under construction through Caixa Economica and the stimulation of the Caixa for this. I would say that we have here a card up our speed. So the other projects in Mood in this level, in this segment, do not have the same performance. I still say we're going to have some positive surprise of Mood exposing less Caixa in Moura Dubeux, possibly less during the entire second project in the second order to be generating cash.

One more question, one last question from [indiscernible]. He asks about dividend. What is the possibility of the implementation of monthly payments due to the taxation for payments above 50,000?

Joao, we have not studied this. It wasn't in our plan. We prefer to do this in lots as we've been doing. For now, I would say we have -- there's not this probability. However, I'm going to give us homework for Wanderley and Barral to look at this going forward to see how this will interfere with us. We will come back to you guys. We'll come back to you. And maybe it was announced in this way. There will be more for next year. For this year, there's nothing else that can be changed because these plans have already been announced.

So having no more questions, Villar, your final consideration.

Thank you, Alan. Thank you and to congratulate everybody in the Moura Dubeux team for these results. We've accompanied our commitment, and we're very, very thankful for each one during this -- our shareholders, like you here on the call, you can. We don't like the word retire. We like to do work hard. I don't want to retire, to generate results for you, not just me or Barral or Wanderley who do any of this happen. The team of almost 8,000 workers already all in love with what they do in a business when you see which is capital intensive, but many also intensive in hourly work hard here. We like this. That's what we value. People have a lot of discipline, a lot of resistance, a lot of creativity and commitment with that, which is our proposition and our project. And all this team, thank you very much for all you're doing. And also thank each one of you for your confidence that you have deposited in us everybody, both on the buy side, on the sell side, every report that you released giving -- recommending the company. And we want to thank you all very, very much. All of us who want to thank you because it's not easy to conquer your confidence. It's very easy to lose it, and we give a great deal of value to that. And so we're very, very committed to that. So I want to thank you all. Have a great day. I want to end the results -- finish the results presentation. So have a good next quarters, next calls and presentations. Hello to all, and have a great day. Goodbye. [Statements in English on this transcript were spoken by an interpreter present on the live call.]