MRV Engenharia e Participações S.A. ($MRVE3)

Okay. So let's get started. We have even more people attending. Of course, there's always traffic, especially on a rainy day in Sao Paulo. But in respect to those who are here already, let's start. So good morning, everyone, and it's a pleasure to have you here for another MRV Day now for 2026. We're going to spend the morning with you. We plan to make presentations for 2.5 hours, and then we have the Q&A session. So we believe that around 12:30 will be done with the presentation and the questions. So it's a pleasure to welcome you for the Investor Day 2026. Let me show you what we'll talk about. Rafael will have a recap -- make a recap of 2025, what we plan to achieve, what we met and where we are in our plan. After that, we'll talk about 2026, 2028 that we now call the cycle of operational excellence because we finished the operational and financial turnaround. And now it's time to aim for greater profit, optimization of employed capital and greater returns. Then [ Rafina ] will talk about real estate development, what he is doing to buy more land with swaps and what we can -- what are the opportunities to expand the margins. And then the operational manager will talk about the state checks, Minha Casa, Minha Vida market and how we'll make the best of these opportunities to grow volume. Then Ronaldo, our production VP, will talk about linearity and production sequencing. How can we increase the speed of production and what we can earn in terms of advantages with production and optimization of capital. And then I'll come back and talk about indebtedness and how all those initiatives combined of improved margins and improved capital employed will bear results. And then [ Matheus ] from Memphis Board, who is also part of the Board of Resia will talk about Resia a bit more, give you an important update where we are in the Resia strategy and what we think about for the future. Then Eduardo Fischer, our CEO, will make a -- talk about the main takeaways. So now to start, I would like to call Rafael Menin. Let me have a sip of water here. Good morning, everyone. Thank you for coming to the event, for attending the event. It's a pleasure to be here, myself, Eduardo, our team, so we can be able to tell you what we are doing looking forward. The first topic is the recap from 2025. But -- the most important is to show you in depth the number of innovative actions and differentiated steps that will certainly place MRV again, as a unique company in the low-income segment of housing in Brazil or affordable housing in Brazil. MRV were without -- we did not make the MRV event in person for 3 years, and now we're back. And we have some commitments that we made to our shareholders because we want to once again be a company that generates cash because for many years in a row, we were a company that after the IPO had the best operation among all listed companies in our industry, our segment. That cycle, which started in [ 2026 ] '16, '17, then pre-COVID, we had a wonderful cycle with a lot of wonderful numbers, cash generation in the first 3 years of COVID. And then a lot was done. So the company wants to once again be a major cash generator and simplification in geographic terms as well as in our portfolio of products. A greater sequence of products in every region we operate in. So we're going to concentrate our production in a smaller geographic region that will allow us to optimize our manufacturing logic and we'll have a lighter balance sheet, be asset-light. What has happened so far? Geographic simplification. We used to be present in 130 cities or towns. And today, we are present in 80 cities, that may look like a lot, but in -- we are in 28 regional core centers. For example, in the Sao Paulo metropolitan areas, we operate in 5 or 6 cities or towns and the same applies to Belo Horizonte, and that applies to all metropolitan areas in Brazil. So there are 28 regional centers. It's not easy in our segment to have a knowledgeable team with all these geographic dispersion. And this is a major differentiation that only MRV has. This has been built for many years, matured, improved in terms of team processes and market knowledge. The last city we started to operate was Manaus 15 years ago or rather in 2015, more than 10 years ago. So we've been improving the gross margin for 26 quarters. And the good proxy for gross margin is the gross margin for new sales. We have been disclosing that figure for 2 to 3 years. We talk about the gross margin of new sales, and that continues to increase with a delay of 18 months, so the gross margin -- the accounting margin becomes the gross margin of new sales, which has closed the year at 35%. Cash generation in the third quarter -- in the fourth quarter was very good. That was the first quarter in the year in which we were able to balance the 2 main operational metrics that provide balance in cash, which is production and transfer of units to Caixa. During the year in the many conversations we had, we discussed that. And maybe the only or the main mistake of the company last year was not being able to balance these 2 metrics in the first 3 quarters of the year, production and transfers. In the first 3 quarters, there was a delta of 5,000 units, causing us to postpone cash generation. In the fourth quarter, these 2 metrics came together. So we produced closely to 10,000 units and transferred 10,000 units with a generation of cash of BRL 182 million, showing that the profitability of this production cycle is better and better. In terms of capital allocation, we've been managing to buy more and more land of high quality with swap agreements, very well located and the net operating revenue and cost continues to drop. So naturally, with time, this capital allocated, which is very high currently, we still have BRL 2.3 billion of capital allocated in land, the land bank. Rafael will talk more about that in detail, but we'll release a lot of capital in coming years from land. Now I'll talk about what matters most. We are now calling it the excellence cycle. We are absolutely certain that this will be a wonderful cycle for MRV. First, that applies to all the companies that operate in this industry is that external factors are wonderful now. The housing program, Minha Casa, Minha Vida continues to be improved. Many important changes have taken place recently, not only in this administration, but in the previous one, also important changes were made to the program and will continue to be made. A new change will be made, and we'll discuss it. It will be in March or April, and we'll talk about that also. So demography, demographics, willingness to buy a house, a funding for these customers with interest rates that start at 4% plus TR, so slightly above inflation. So there's no credit facility for individuals in Brazil as cheap as credit for affordable housing. In addition, in the state -- at the state level, state governments have announced a greater involvement in order to boost the MCMV program, providing state checks because customers from these low- to middle-income segments do not have a lot of savings. So these checks are a way to help people buy their own homes. And the most recent aspect that we call the development of regulatory frameworks of the cities. Sao Paulo was the first city to really tackle this issue that we believe is the main pain point for families who live in the metropolitan areas. So being able to live in an area that is safe with utilities relatively close to work or to public transportation, Sao Paulo started this movement 10 years ago with the approval of the new master plan that's been authorized and the concept of centrality. So how do we bring the lower income populations to the central areas of the city that have better utilities and transportation services, public services in general. Sao Paulo used to be -- the city of Sao Paulo used to be a market of around 20,000 units per year. Last year, it amounted to 100,000 units. So the market multiplied by 5 in approximately 5 years. So that did not happen because the income of the population improved. Of course, the program and affordability improved, but that happened because people who live in Sao Paulo with a lower income have the capacity or are able to choose from a wide variety of products in excellent areas of the city, close to subway stations, close to work, areas with lots of schools, children care centers in hospitals. So 100,000 apartments per year, let's imagine an average family with 3 people. We're talking about 300,000 people from Sao Paulo that will be able to live in much better areas of the city that they currently live in. So within 5 to 10 years, 3 million people in Sao Paulo will be able to live in a better area of town. And that totally changes the market dynamics. Given this fact, what we see for the whole country is that more and more cities and towns are making the same movement. So that has no fiscal cost for the local authorities on the contrary because that provides many benefits. It reduces costs, traffic. It improves management of public health services, education services, utility and -- like water, sewage and electricity services are simplified. That's a good example of something that's happening now in Belo Horizonte, Recife, Rio de Janeiro and many other local authorities have adopted the same agenda. So there is an understanding of society that about the lower to middle income segment that when the federal, state and local levels act together, that boosts the size of this market enormously. So this is the housing deficit, which is impressive. Despite this mature program that has delivered 400,000 units since its launched in 2019. So the MCMV program has been around for 17 years. But unfortunately, the housing deficit in Brazil continues to grow. We have a blurry annual budget of 500,000 units per year, the new units per year, but we need the money to fund customers and companies. And there is a funding of BRL 568 billion that's the largest in history by far. Young people want to have more flexibility, less assets and properties. However, having your own home still is the main dream of young people in Brazil. 93% of them want to have their own homes. And state subsidies or allowances, [ 23 ] BRL 1.3 billion has been allowed or awarded in benefits, subsidies by state checks. As we've seen discussions going on at the local level, the state that still don't have that support are discussing how to provide support -- additional support to the MCMV housing program. So we believe that from now on, other states would also start to have local subsidies.

Okay. We have mentioned the change in cities milestones and the change that, that brings about to Brazilian cities, the impact on Brazilian families as a whole. Moving on. Even more important than the external context, of course, the external context goes for everyone. But what sets us apart internally is that MRV is clearly the company which is exposed to the largest market in Brazil. The 28 regional hubs accounting for 53% of the Brazilian market. And we have a footprint in those markets and have had that footprint for years. It's a very special asset, and we've talked about this with you over and over. Of course, that adds complexity to the operation, but we've been doing that for so many years. We have put together teams. We have a mass knowledge to conduct the operation in such large scale, 40,000 units a year, 28 regional hubs. So MRV is the only company able to operate at that scale with excellence. I'm going to focus on the internal levers, which is the major topic of today's event. Two main mottos we follow here in the company, 2 mantras, if you will, our teams talk about it all the time, and they are. Number one, we were able to have an important recovery of our margin in the past few years. We moved from a very low margin, our worst year ever was 2022, and we went up to an accounting margin of 31% and a new sales margin of 35%. And what's ahead now? Can we grow even further? Our team is sure that the answer to that question is yes. As for capital employed. That was the focus of a lot of debate. The company has a huge balance sheet now, especially allocated across land, [ pro-soluto ] and some assets for construction. We're going to be touching upon that in a moment. And also a larger than desirable stock or land bank, if you will. Thiago will go into more detail about what we did last year and what we're going to do this year with even more effort to get the company's DSO at a different level now. And how do we go about that? We call that margin expansion, an equation, if you will, to go beyond those 35% I mentioned. So we start with our land bank, of course. It's an important cost for us, land. Rafael will talk about the land that we have bought in 2024 and 2025 and the land we're going to be buying this year. Those lands will be high quality. This is the land purchased in barter agreement and cheaper land than we already have in our historical standard. A second topic is the product conception. Ronaldo and Rafael will be touching upon that as well. Product emerges from 2 main important levers. Number one, it is linked to what cities allows us to do today. Cities have been more flexible in terms of allowing us to have more efficient products, more affordable. In addition to changes in legislation, we also did our homework, have been doing so for the past 2 years to have a more efficient engine. But if you have cheap land and if you have a good conception of the product, that's no good if the execution is not top quality as well. And I am confident that our production team is the best production and execution team in the market, the only team which is ready to execute over 40,000 units a year across 28 regional hubs and do so very efficiently. And lastly, price. Thiago will be talking about all those levers in a moment. Our price, right, Thiago, our price for the past 4 years had been going up above inflation, and this will be the same thing for 2026. So the combination of all those 4 variables of that equation will lead us to an even higher profitability than what we saw in Q4. As for the balance sheet, optimizing our capital, we have a huge opportunity here. Last year, we had the image of a water tank and a huge water tank. We have brought that level down a bit. Now there is an opportunity to look that the half empty glass is that the water tank is still huge. The half full glass is that with the actions in place, we'll have a water tank of land throughout years reduced in level. We'll have capital to be liberated, which is going to be huge in the next few years. Also important to mention, which is linked to production, reduction of fixed assets also offers an opportunity. Number three has to do with VSO. And Thiago will touch upon that, and we'll show you a more adequate number, challenging still, but more adequate, and we plan to execute that throughout the year to deliver different VSO from last year. And lastly, accounts receivable -- accounts receivable rather. For the past few years, we've seen numbers that need to be brought down and the pro-soluto after delivering the units. So the combination of those 4 variables throughout the quarters will lead us to a much more efficient balance sheet than we have today. And then at the end, Kaka will show you a matrix comparing profitability and allocated capital, and he will run some simulations for return on investments and return on equity. In addition to being in a market which is quite strong and which is improving across the 3 administrative levels, federal, state and local in addition to being a company that will certainly be one of the most efficient in the industry. We have some features that set us apart. Number one is that we have a strategic footprint. We have a footprint in a mature manner for many, many years across the country with a very strong team in all those regions, people who know the market really well, brand -- if you are buying a house or an apartment or a home, it's the most expensive asset assembly can acquire. If you have a brand which is well known and appreciated by the industry, that takes a lot to build, takes a long time to build, and we do have the strongest brand in the industry. As for expertise, which links back to the first aspect I mentioned, we built 40,000 units in 2013. So we're talking about 13 years executing at the same level, very large scale across the country and an accumulated know-how of many, many things we did right, a few mistakes, but combined provides us with a know-how level that only MRV has. And of course, the team is ready, which is also linked to the other aspects. Given the past 2 years, which were quite challenging, I can say that the team is really engaged with a lot of appetite to show to deliver a company which will be epic -- also a source of pride for us. It might sound like common sense, but it's not. It is to be able to build 40,000 homes a year to deliver a product which is so important for the people and to operate in an industry which is highly transformative. That makes us a unique company, unique company with the scale necessary, working with ethics. We do impact 120,000 Brazilians every year. So we have the ability to change the lives of thousands of Brazilians every year and have an interesting figure which is the following, and that changes every year, actually. 1 out of every 100 Brazilians lives in an MRV unit. And in the cities where we are present, 1 in every 50 Brazilians live in a unit built by MRV. In some cities where we have been operating for years, 1 in every 15 inhabitants in those cities lives in a product built by us. So it is an incredible feat, which makes us all very, very proud. Also important, reputation. This is a survey conducted by a well-known institute -- within the industry. We have -- we rank in the Tier 1 reputation level, an interesting piece of data is that if you are an MRV client, you place reputation at the excellent level. So if you are part of our ecosystem, you have bought a product, if you live in an MRV unit, you are likely to place our reputation at an excellent level. That's what the survey shows. To wrap up, Brazil, we are now building when I say we, I'm talking about myself, Fischer, our VPs, our managers, our team, our directors, we are absolutely sure that the company we are managing, that we're building every day. This company will -- is and will be the best MRV in history and the best company in the industry. So I'm not going to be briefly going over Resia. Resia is a thesis we strongly believe in the multifamily market is a huge one, very promising with high demand. It's a market that went through a difficult cycle, where we had oversupply across many cities, interest rates through the roof for a long time and that clearly had an impact on Resia. We also had internal aspects. We didn't get the execution right when we had to. We've talked about this. We worked across different fronts. At the same time, we added complexity to the company, which was a problem, but that's what has to bridge. But even though we like Resia's thesis very much, the mandate from our management, the mandate from the CEOs is for us to focus on Brazil, given all the context, when I talk about Brazil, we talk about several difficulties and specifically about our market which is very good. The mandate from the management is for us to focus totally on Brazil. That's a strategic decision around Resia, right? So we're not going to start new projects under the current corporate structure. That does not mean Resia is over. No, we like Resia. We are now studying alternatives to approach Resia. The company will live on, but within a new corporate structure. If you are a shareholder of MRV, we will see Resia being separated, right? It will be in the next 2 years, we have [ Matheus ]. We will show you a snapshot of where we are and where we will be so that in the coming quarters, both the assets and liabilities on Resia will be negligible within the MRV structure. This is what I had to start. We will have time for Q&A at the end. But now I'd like to turn the floor over to Rafael Pires, who will be talking about the first phase of our engine of our industry, right, Rafael, over to you. Thank you.

Thank you. Well, good morning, everyone. It's a pleasure to be here with you this morning. You talk with Kaka and Augusto in your everyday operations. But for us to have a chance to be here and chat with you, show what we do, it is truly very nice and very important for us. And I will start by linking to Rafael's presentation. He just mentioned that this cycle '26, '28 will be the best cycle in MRV's history and that we will deliver the best MRV in history and the best company in the industry. And I'll show you the first phase of that process. So I have to tell you the following. The best MRV in history is already a reality here. We have a strategic footprint, which is quite stable and in place. We already have business starting with great margins with good capital allocation, something we never had. We have today installed capacity to transform land bank into products on the shelf, which is huge. We are well positioned to be able to capture the opportunities in large cities. So in the next 20 minutes, I'm going to be moving across those 4 pillars, margin expansion, capital, people and client. I'll prove to you that what I'm telling you is true. The best MRV in history is already present. It's already here. Talking about capital expansion and our margin, this is the conveyor belt of real estate. We split that in 2 major phases across that conveyor belt or that treadmill. That's when we buy land. We buy land in a very disciplined way. It's a very important asset, the main input for a company, a real estate company, and we have a footprint. We have defined as target. And with that, with increasingly better costs and payment conditions. That cycle directly impacts margin expansion and in optimizing capital allocated. The second phase of that treadmill, it's land bank management. How do we take those inputs within the treadmill, the huge amount of land that we have and make sure that we have a linear process so that we can allow the continuity for a new cycle to begin, especially operating in such a complex market. If we could focus on the first phase, which is the purchase of land and what we've done for the past 2 years on that front. What we call strategic footprint, Rafael has already mentioned something. And we cannot forget that not long ago, we were operating across 128 cities in Brazil, quite complex in that respect for a company that wanted to be a company with a linear manufacturing process. We handpicked the 28 regional hubs I mentioned. And since then, we have been focusing on those hubs. Then -- when I talk about 28 hubs, as an executive of the company, I have the obligation, of course, of delivering the results. I have 2 other obligations, which is to mitigate risk and to ensure the company's continuity. When we have 28 hubs that mitigates risk in a very efficient manner and a very concrete manner. We are here in Sao Paulo today. We see legalization in Sao Paulo is going through a difficult moment. If I were present only in Sao Paulo, I would be very much concerned. Of course, Sao Paulo is important. Of course, we are concerned. But with 28 hubs, if that generates some delay, I have something or a way to offset that. In addition to that, when we have that smart dispersion across Brazil, I'm exposed to markets that have very high demand and low competition. Some markets I look and I see better VSO, I can buy cheaper land, I can operate having very large margins. So that dispersion makes a lot of sense. It was handpicked, as I said, it's not a coincident. It's not by chance. And that did we do last year. We were able to buy 71,000 fractions on those 28 hubs, 97% of those lands concentrated across layers 1, 2 and 3, which in addition to mitigate geographically, we also mitigate the funding risk. We are concentrated on the first layers of the program, 1, 2, and 3, as I said, and we are confident that -- if we have some funding restrictions in the future, we are operating across the lower layers, and we are across Brazil. And that, of course, helps us mitigate risk and assures our continuity. Does it make a difference to be stable? Of course, it does. It makes a world of difference. We have a team which is trained, knows the area. Rafael said, the last [ TD ] we joined was 10 years ago. I was there in Manaus to start operations in Manaus. It's a huge work. You need to learn the legislation. You need to learn a new culture. It is a level of complexity, right, [ Brado, ] to train a new supplier network, and we're doing the opposite now. We are reducing the operation in those 28 hubs. The operating risk at MRV, the risk equation, this is 0.

So if we were saying, oh, we're going to start operating a new state in a new town, but it's not our case. We're stable. We're doing what we know how to do in the same regions and for a long time. And the consequence of is this because we are knowledgeable, because we have a network of brokers, and we've been able to reduce the cost of land. This indicator of the cost of land according to the net operating revenue is the best way to know if I'm paying too much. And we're able to reduce from 11% to 9.9%. At the same time, we're doing things that may seem [ antagonic ]. Well, you're paying less for the land, but you're decreasing your payment terms. Well, that means that you're probably buying land in cheaper areas. No, we paid less for the land. At the same time, we were increasing the concentration in capitals a lot. If we are concentrating 28 city centers, now we are concentrated in capitals -- of the capital cities without paying more for it. This has a direct impact in the same variable of the margin equation. So land is bought at a lower price in areas that allow for higher prices of units. We paid less for land. We bought more, but we increased the percentage of land swaps that's -- we reached 93% of everything we purchased, we purchased with a swap condition and otherwise, we're going to pay after launches -- and that has a huge impact in the first variable of the equation of our capital optimization equation. And we remain very confident that operating in the areas we know with the brokers we have and our team, there's no reason for 2026 to be any different from this. Since I'm talking about employed capital, last year, I made a commitment in front of all of you at the same stage. So let me talk about that promise. I said that something that I was worried last year was the size of capital invested in land. It was BRL 2.4 billion, and we reduced it by BRL 300 million last year. So we are absolutely sure that we are on the right track. We'll continue to reduce that figure. Our expectation is to reduce to BRL 1.9 billion in 2026, and I'll be here in '27, '28 and '29 to make sure that I deliver on my promise to reach BRL 1 billion in 2029. And this water tank will continue to lower the level because this water tank of amount of money paid, only there's one incoming source, which is land bought. And today, we are buying with high levels of swap. And there are 2 exit ways for this water, which is acting on the land bank and the second tap that we created last year, which is recycle the land bank. So that shows the quality and power of the land bank of MRV. We're able to sell BRL 258 million in assets by recycling assets without the need to report any loss in these assets. So they are good assets. There is a market for them. So we'll keep that tap open because we want to make the balance sheet asset-light. So as you've seen, a lot has been done last year, but there is more. The second part with this land bank management, we remain highly focused in 2 important things. First is the early legalization of the land bank. This is extremely important and strategic and linearity. Having a land bank as big as ours and an operation as big as ours, we have to think as a factory. How can we translate that to our operation? This is an example. Some of you may know. This is a typical town of us, '26, '27, '28, the best MRV in history is here. Today, I'm buying the land that is for 2029. The land for '26, '27, '28 has been bought, has become -- is legal already or regularized. And when we look at the mode production lines. Thiago knows when the products will be launched when the boats have to be produced, and I'm buying land in a certain town. When we say this is the purchase plan for a certain town, this is my basis. I look at the year 2029 and says, oh, there's a lack of a product in the downtown area of the center. So I enable the purchase plan for a certain part of that town. We decide that with 3 people, Ricardo helps me, Ronaldo looking -- decides what I'm going to buy according to the need of the product. And we decide on a strategic way market by market. So at the DI, we say that stores never close, a plant never stops producing. So -- we know that in order to be a linear in manufacturing company, we cannot lack products because the commercial team suffers when that happens because then our team will be less efficient and SOS will decrease. If I ensure the supply of land, that will have a good impact on the equation. The impact of hiring someone, training and then closing the construction area. A plant will never be efficient like that. But when we have this sequence of construction works, most better optimization of our assets, of our equipment and better use of capital with a lower unit cost that goes directly to the margin equation. So it's a huge impact. But doing this in 28 micro regions, ensuring the supply of products in a country where we know that the public authorities and agencies are not the most efficient. The only way to do that is to make the -- have the permits earlier, have everything that we depend on the government earlier. So we built a knowledge of the registers of the local city halls. And last year, we issued 52,000 in construction permits and in 2025 and 55,000 in 2026. So we are committed to mitigating risk and ensuring parity. So when I have the product, it's good because if the product is sold earlier than expected, good. I have a ready-to-build land bank. If there's any problem, I have another land that can replace that product. So -- this cushion of legalized products ensures the linearity of our production line. Nobody in the market -- no other company in the market is able to issue 55,000 permits in a year. Well, I've said a lot. So we have the largest team able to buy land bank. We have the highest percentage of land swaps. We are buying land by net operating revenue at the 9.9% rate. And what does that tell about the company? We have to deliver the best company in the industry. Will that do it? Well, the numbers say yes. This is an average of the 3 main players that are competing with us in the market. While we purchased 71,000 on average, the competitors are buying 45,000. The percentage also up 93% compared to 66%. Our land is purchased at lower prices. And our capacity of launches based on our land bank is unparalleled in Brazil. Are we -- is that enough? No, we'll continue to work to do even more. What makes me sure that we can and we will build an even better MRV is that we have a very differentiated team, a very special team. We have 7 officers that work with me spread at the 28 regions and 28 managers that have been with us on average for 7 years. So at least 2 real estate development cycles. It's no coincidence, 28 regional managers for 28 micro regions. Each region has its owner accountability. The person lives there in the town. They are there every day during the weekends, their children go to school there. They know the market, the real estate register, the environmental authorities, the mayor. So that -- the local team is what we call people with a [ capital P ]. Nobody does anything alone. So we have the largest team, and we have to deliver to them the capacity to operate with the highest technology available in the market. The MRV land, MRV [indiscernible] continues to evolve. It's a very powerful tool. Instead of just showing a picture, I'll play a video of the software operating. So let's -- this is the city of Aracaju. It's a simple city. There's a screen that works on iPad, on the palm of our hand. We're able to overlap items. This is the micro regions of the city. I can click on the micro region and see all the information about it. What's the minimum inventory I have to have, current inventory, how many land -- plots of land I have enrolled there. What's the cost? If I may -- if I want to assess the land, I can have a map of competitors on the palm of my hand and have accurate information about the competitor. And when I click on it, I can see everything, what's the price, inventory, how many units they used to have, what's the type of apartment that's being provided, there's a parking spot or not. So I can have an assessment of the market. And when I want to buy a certain land, I want to know about the income of people who live there, and I click on income, and I know what's the average income with the brackets next, what -- for the people who buy there. What about the demographic density or inhabitants per square kilometer? I know how many people live there. So quickly, on the palm of my hand, I'm able to understand the market, the region of the city. And obviously, there are more details. I can see all the land that we own, plots of land that we own, whether it's purchased, being prospected or being legalized already. So we have trackability who has signed when the purchase was made, who approved it, who signed it, what is the purchase terms. So we have the feasibility of that purchase, which is the commitment we make to the company in terms of margin and employed capital. And we're able to compare that throughout the life of that land. So the most advanced software for land management in Brazil is the one we have. And it must be because what we do is so important. Real estate development is a form of art. It's being able to look at a land and to build a dream that someone will dream of later on. So what we do demands a huge focus on the customer. All of us have that feature. Instead -- in addition to being a team that works very hard, we also have a very keen perception of our importance in the life of our customers. And that's why we work hard and deliver. And I'm absolutely sure that we deliver the best value proposition for Minha Casa, Minha Vida program. Well, it's -- what do we do? We do -- it's a real estate. So if I make the wrong assessment and place the swimming pool at the wrong place on the land, there's no way to change that later. If I decide to build entertainment facilities, sports facilities for 100 people, and there are 1,000 people living there, that's useless. So in the very early stages of the project, we have to use our knowledge and use the technology to make the best possible product. We develop real estate projects with 6 people with 3 people, 3 areas together. We sit down together. Ronaldo delivers me parts that are already measured. So if I'm building a condominium for 400 people, I know what's the size of the swimming pool I have to have. So our plants are developed with technology. We have a 5-star checklist with several rules, how far the parking spots will be from the building, the sun insulation or how much sun is the apartments have. And this experience of living, Alexa, is what feeds our brand and generates that perception of value that Rafael showed to you in our NPS. So we are very sure that what we do within our projects walls is the best living experience in the market. But there's also another area, another factor that's closely related to that, which is location. There is a movement of going downtown that's happening in Brazil, Sao Paulo, Recife, Rio de Janeiro, Belo Horizonte is this project is now being discussed at the local level. And we have people that due to previous laws had no other option but to live in the outskirts of the city. And by doing so, they ended up generating for the local authorities, very high expenses with infrastructure of hospitals, schools, commuting time that generates costs for local transportation lines. So people end up living very far away.

Now the country is now bringing those people to live closer to the center of the cities, cities that lost their magic, lost their life. And as you bring people back to the center, you unlock new markets, have amazing VSOs without a sense of public spending that dynamics is only based on legislative actions. You change the working code or norm you are able to transform whole cities. Sao Paulo in 10 years will be a different city. The number of people moving back to the city will generate a very positive impact. So we are quite sure that this is a nice thing happening, and we are ready to tap on that. We are present across all those capitals. We do have products to meet that demand, and we are ready to capture that opportunity and be a very relevant player in this new market, which is now emerging.

Belo Horizonte is an example of that. In the last census saw a drop in the number of inhabitants is a very atypical fact, a capital losing population because the working code was not efficient. Now we are approving a new plan to incentivize social construction. And now we have 120 units now in a place where we have 320. So we were able to triple the PSV in the same land bank, given that centrally located land plots are more scarce. That's exactly what Rafael mentioned. It's not about people moving or changing addresses, but it's about changing people's lives. And I finish here. This is something I want to be recorded. I'm going to be available throughout the week for you to be sure of what I'm saying. The best MRV in history is already here and the best DI in history is also here. Thank you. Thiago, over to you.

Well, good morning, everyone. It is a great pleasure to be here once again to talk about what we are now building in the commercial front to support everything Rafael has just shared. We have a wonderful land bank, have been working well with our products and to transform all that into reality, we need a strong commercial team, a very active, very engaged commercial team to make things happen. Well, it's nice to go back to our mission. Our mission within the commercial team is to sell more and linked to the 2 main strategic pillars we saw before, but with a huge responsibility to expand margin and with an eye on producing our pro-soluto. But more important than that, we have this important mission around this excellence cycle to bring our VSO to a more robust level, as explained by Rafael just now. In the past few years, we have been getting ready for that. For the past 3 years, we have talked about that 40,000 net sales that had to be materialized and that allowed us internally to be ready to start a new expansion cycle, a growth cycle. And how will this unfold? It will unfold with potent launches so that we can gain traction at the launch moment, and that helps the commercial team. Rafael mentioned that our store never closes. It's important for us across the 28 hubs to have recurring launches to maintain our commercial team engaged. And that allows us to ensure a balance between produced and transferred units, and that allows us to generate cash in a consistent manner. Rafael also mentioned our discipline for the past 4 years, and that will continue to be so. We continue to be disciplined, and I'll show you the size, we are managing over 350 construction sites. It's difficult to maintain those prices above inflation. I will show how we do that and a strong focus on reducing our pro-soluto. But it's important to recap. We have been building that journey for the past 2 years. We almost doubled the size of the company in the last 4 years, but we are not happy with that only. It's nice to see that an increase in sales. It's nice to see the increase in prices, how we recovered margins, how we have diluted expenses, as we mentioned yesterday in our earnings call. But a criticism we have internally, that gap that we had in sales in 2025, we were below expected. We planned 5,000 net sales in addition to what we had, and we fell short. We had a gap, especially in the first quarters, but then we gained traction and recovered some of that in the fourth quarter. And we also improved our efficiency in the end of the year. So we're able to sell a lot at the end. We were not able to transfer everything, but that led to some level of inefficiency, which has been addressed. We have been making the most of our state subsidies to offset that. So the states where we had a higher impact, we have one going full steam, Rio Grande do Sul and Amazonas and [ Serra ]. We are now working with the administration to improve the operations. And that is reassuring for us that in 2026, we are planning to reap the results. And why am I so confident? I am confident because that internal structure includes a few things, our footprint, we concentrate our launches in certain areas. We have smart launches, which are complementary to our available portfolio, generating team engagement with desired products, products which are quite well designed, including all the pillars of the company and with a quality that generates power during launch. We have to sell 3 times, as I say. The first one is more complex, is the sale for the real estate market. When the real estate market buys that idea, that's halfway to success. We have no doubt things will happen, supported by a brand strategy, a preferred brand, a desired brand that lends credibility to clients. Ronaldo will reinforce this. We talked about how much the brand provides credibility when you make a decision to purchase a home. Investments and intelligence supported by a lot of people to connect clients with brokers. So we work hard with our sales effort, sales force that we have put together throughout time. So internally, we are well prepared, well positioned. And looking out, as Rafael said, we're now seeing the best moment in the real estate market for the Minha Casa Minha Vida program. It's also nice to remember, and Rafael mentioned that a little bit, the changes in 2026 really helped MRV. They are quite relevant for MRV, more than any player in the market, I dare say. Out of the 28 hubs that were mentioned here, we are present across several capitals. But there are cities where we had a low ceiling and the evolution we saw earlier in the year allows us to find or have products that are more affordable for those cities, allows us to have a dilution of pro-soluto and a gain in margin. It's a perfect combination of the 3 pillars that help foster VSO and also our margin ambitions. Also supported by a new subsidy curve. Just to recap, this has already been executed. MRV has already captured part of that or most of those opportunities, and we continue to do so throughout the year based on the launching plan we have for 2026. And today, we have something even more important, which is the change in the income ceiling. 12% of growth is quite relevant, and I'll show you that in the next slide, the impact that has on the company's stock, slightly lower in Group 2, but quite relevant in Group 3. We will have people of up to 9,600 with a very -- with a much better interest rate, much lower interest rate, making it easier for that income bracket to access the portfolio. And then Group 4, which is less concentrated in our case, but which is also important. And lastly, a change in the ceiling, as I said, BRL 400,000 -- from BRL 350,000 to BRL 400,000 that also allows for a better approach to our stock. We still have 5% of our stock linked to Layer 4 and SBPE and now we start to accommodate Group 4 as well. So only good news. And that, of course, translates into more clients having access to the company's portfolio. We have a curve here where we show the changes and the opportunities provided by Minha Casa, Minha Vida and the affordability issue. And we like to split that a part where I can capture on the same price, a reduction in pro-soluto. And then as I increase funding, I'll give you an example. We have a funding of BRL 183,000 and that increases by BRL 17,000 in this case or a price increase or an opportunity to capture some kind of loss here that allows us to expand margins for our products. We have a very broad scenario where we can see an increase in margin. But the most important point is down here that move in our stock, which starts to accommodate Group 3, Group 2 and Group 1. To give you an example, last year, we had about 15% and 18% of our sales in Group 1, and we can see that we're moving closer to 25% for Group 1. It's a lot of opportunities. That's for the current stock. I'm not talking about what we have in terms of launches in the pipeline for the year. So this is a huge opportunity for us to be able to deliver what Rafael says, our ambition to increase VSO. Is that all, Thiago, you may ask. No. Rafael has already mentioned the opportunities of the state checks, the current ones. It is an important point around operational discipline to use the checks only where we can transfer that at the same speed where we do not have -- or places where we do not have the check possibility. So that's strategic for us. But even better, as Rafael mentioned, the 28 centers account for more than 50% of the market. That's quite relevant. And we're not talking about growth. Those 28 centers grow twice as fast as the other 49% of the market. In other words, the market will continue to grow where MRV is located, and that is very relevant. In addition to that, in those centers, we have 15% of share on average. We look on a state-by-state cases, we are either top 1 or top 2 in the states where we are, a very relevant footprint at the right place with a huge opportunity to grow from 2026 onwards. And that reflects the strength of our brand. Every year, we ask a question, we send out a survey asking what's the #1 brand in your memory when you talk about credibility. And every year, we've seen MRV grow. 35% of people who are asked say that MRV is the #1 in their memory, in their minds. Rafael mentioned the largest company and it's the same thing for the brand. As a brand, we need to lead and boost and drive the industry. And that's what we do to show to an increasing number of Brazilians that it is possible to buy a home and that MRV is the best option. It's the best known, the most recommended brand and the preferred brand. In other words, with the development strategy that we have with a strong brand to support it, we have no doubt that we will have more clients coming to our base. As a reference, 14 million people, single users logged into our site to search for a home or house. Of course, many people are just curious, but they were there. We have their login information. We have an ID for them, and we will work on that for many years to try to get the right moment for that client to buy a unit. I talked about the market. It's a strong market, promising market. On the other hand, we have a well-structured brand, which conveys credibility. What are we missing here? Our excellence cycle and how we are going to execute all of that to make things happen and translate into the company's results throughout the next 3-year cycle, which is starting today. Beginning with the margin expansion, I think the main lever for margins linked to the team is an increase in prices. And we are glad to say that we have been growing in a relevant manner for the past 4 years, not only in the MRV. When we look at 93% of our portfolio, Minha Casa Minha Vida, which is our core, that has also been growing solidly for the past 4 years. Is it easy? It's no easy task. It doesn't happen by chance. Several variables coming into play. The point is how can we grow price, expanding margins and at the same time, ensuring affordability. Two pillars are important to support that. Technology is number one. We manage more than 350 price tables every month. Every month, we have over 1,000 warnings for prices every day, an opportunity here or there for a specific unit or a product to manage that every day. The system needs to be on every day 24/7, sending signs and warnings for our teams and saying there's a chance to increase 1,000, 2,000 to try and find a fine-tuning approach. We have been doing that in a very disciplined manner every day, every month. 350 tables, as I said, on a day -- in a day, 350 with a lot of intelligence, a lot of specificity to be sure we can capture opportunities without losing touch with the affordability concerns of clients. And of course, with all of that, we need to have a simulator in that. You are talking about over 1,000 brokers selling MRV, over 800 brokerage houses. So that has to reach brokers in a simple manner. So for each unit, what are the ideal conditions, the ideal units for that client, that client sitting at your table at that moment, speed, connection to ensure conversion at the end of the day. Also an execution discipline is important. Everything that Rafael said in terms of feasibility links to this point. We need to be able to execute in a viable way. That's key, supported by evolution. So in our partnership with Caixa, we have been showing a series of opportunities based on robust data from the market and how we can improve our assessment methodology, our appraisal methodology. And we have also been doing that with Caixa, also diluting costs, expenses. So we are on the right track to expand margins, and this will go on moving forward. More importantly, 35% of margin was mentioned in Q4 and the question that remains, have we gotten to the ceiling? And the answer is no.

Why am I so sure you haven't reached the cap? Because we're entering a new season. Rafael was talking about the lower cost of land. This continues to appear in 2025 and '26. And this will come from land of inventory launched in '25 and '26. That reflects a series of efficiencies we have captured of things we have learned and start to operate in our balance sheet. Of course, this will happen in the next 2 years, but it will become a reality in MRV sales. So new seasoned increased speed of sales. When we look at our strategy, we have a great ambition for growth. The next double digit for '25 to '26, but it's less than what we're going to launch or not. It's an intelligent launch distributing in Brazil, but we're capturing about the list of permits we have, but 45% of MRV launches will be in 10 cities. That's the power of concentration, and we have a great repercussion in the commercial strength we're building. So optimization of capital. There's only one variable here, which is to sell more. We're going to accelerate sales. Our team is very ambitious and wants to build that in all the 28 centers. And better than that, when we look at the discrepancies, it's not easy to manage these 28 centers. It's a risk protection, but it's not easy to ensure the same speed of sales in all of them. I have 48% running at close to 28%. But there's an important part running from 24% to 28%. So how can we reduce discrepancies through sales power through launches, we're able to boost the real estate market using the products in the right way and how margins will play an important role to support the growth of sales over supply and to -- and especially how we're going to engage the team for recurring sales, recurring launches, recurring success and recurring sales team on site. I'm sure that we are -- our sales over supply will be close to 28%. Well, there is a major attention point here in the portfolio. I'm very pleased to what we're doing. We haven't reached the state-of-the-art yet. There are many opportunities, but we have dropped in the last 2 years very -- in a very disciplined ways in the size of a pro-soluto that has impacted our average term for receivables. So how long it takes us to receive those funds, and we are decreasing those terms. But the major opportunity is in balancing the pro-soluto after we deliver the keys. So we did close to 60% in the pro-soluto after delivery of keys, and we want to reduce that significantly. Launches will help us undoubtedly. A new dynamics of payment terms we are thinking about, and we'll detail soon. But there's also technology. Technology, we're using Robin Hood methodology. How can we give more credit for those who need more to ensure affordability, being able to capture more opportunities from this customer that has a greater financial means by charging a little bit more or receiving earlier -- getting paid earlier. So we are using the technology we have in-house and also external benchmarks. And what we'll collect is a closer or faster cycle of receivables. So I've spoken about growth, margin growth, how confident we have to be to continue to grow the increase of VSO or sales over supply and how this will play an important role in the deleveraging and to optimize invested capital. But people are essential for all of that to happen. We have senior leaders who are heavily engaged in the business as Rafael said. But I want to talk about our strategy. Recapping our strategy for sales channels. In the pandemic or before that, we had a major strength of our in-house team. 65% of our sales were made by in-house team. Our managers were like green blood, as we say, all employees. But after that, we had to rethink our sales model, how to reduce some costs. And we developed a channel that we did not use so much, which was the real estate brokerage houses. And now we have more than 800 real estate brokers selling MRV products. That's in place already. Now we want to grow our in-house sales team. We had to reduce it, and now we're building it back, but it takes some time, but we are working on that. We have started March last year. We discussed this last year. In the fourth quarter, we already captured improvements from that strategy. And for the first time in 3 years, the in-house sales team has sold more than the brokers and external brokers. And our commitment is to have a 60-40 ratio. February, we have more than 4,200 brokers, and we continue to grow, capturing and hiring very talented people. MRV is now attractive to the real estate market and a lot of people are coming to us to join this movement. How can we maintain and ensure the success of this new cycle? I think this image explains it. We have to have an efficient portfolio, many launches concentrated on those 28 centers and invest to mesmerize customers. We didn't have decorated units at our store -- at our shops. Now we open more shops, more stores, they are more better located in the central areas. And we are enchanting this customer, bringing them to visit a decorated unit that mimics a real apartment and people really love that. So 14 million people have accessed our websites, but the database of people who talk to our team, 11 million. 11 million people have entered the purchase process. And brokers cannot keep track of the -- such a huge database. But myself and my marketing and technology team, we are segmenting the databases to get in touch with that customer at the right moment in order to close the sale. So we have a huge team that's engaged, trained and with a good compensation. So this is a cycle that grows and builds, and we are able to deliver a growth of sales over supply with that. And to wrap up, nothing more important than saying that our customer is an important part. We look from the sales team and the marketing team. Every day, we worry about how can we improve this connection between customer, company and the broker. These are 3 important players. We have to ensure that this is a fluid, a good journey because making the dream come true of buying a home is very important. People believe they can and 93% of people believe they do. So we want to make that journey easy uncomplicated. And I have a video to show how we are building that already in execution that will bring great results in this new cycle of MRV. I'm sorry, we were not able to see the video here. The journey to buy an apartment. We have to learn to meet every visitor and map the customer profile. In an ideal world, we have to provide the right apartment to the right customer and find the best approach for that customer. I'm sorry, but we're not getting the original audio from the audience. Okay. Just to give you a good example. It seems complicated, but we're able to connect the brand, the broker and customers. So our commitment is to boost the VSO, sales over supply and to deliver more and more units and to improve the earnings of MRV. Now Ronaldo, the floor is yours.

Thank you. Good morning. Can you hear me? Okay. Well, it's a pleasure to be here for a second year in a row, and I represent a team I'm very proud of, which is the engineering and production team of MRV. And I'm a spokesman for that team that along with other teams of MRV does a wonderful job. My name is Ronaldo Motta, and let's start. First, I would like to say that our role in the company is to produce, produce with quality, with -- in a safe way in the least -- as fast as possible and naturally at a low cost. And I want you to leave here today, leave here with the 4 main messages from the area of production. The first message is that we already are the best and largest engineering team that is able to industrialize construction in Brazil with efficiency and increase in productivity. Currently, there are 22,000 people working every day at the construction sites of MRV producing. This is our workforce, the blue-collar workers that are there. This is why Rafael mentioned in the beginning that we are the power that builds Brazil. Number two, standardization has allowed us to obtain gains of scale and the operational simplification. And while without any trade-off, we increased safety, quality and speed and lower costs. So today, we produce between 180 to 200 apartments per day at MRV. This shows clearly our scale and our power. And so that reaffirms the statement that we are the strength or the power that builds Brazil. We're doing this with a massive investment in industrialization processes combined with high-performance platforms and people. All that combined makes us absolutely sure that we are a unique company in the industry. Only in engineering, we have invested in the last 3 years, including 2026, BRL 100 million. And last but not least, it's important to highlight that all of that is connected from strategy to execution. The cost have a direct impact on the business margin. The speed of production is closely related to the optimization of the balance sheet. The NPS that our customers assess us has a lot to do with us and our customers, and we treat safety as an essential feature of our process because we need to do all that, protecting people who work at our construction sites every day. So we reduced costs to increase the production speed to 4% to 5% per month, which on a quarterly basis would be 12% to 15% per quarter. construction that lasts 20 to 25 months, the NPS 85 and 0 accidents with leave. When we think about the cycle of excellence, we are also based on that cycle in production, but we interpret it in a slightly different way because we need to understand how those pillars connect to all the stages of engineering process. So we will look at these 4 dimensions that are the pillars of the excellence cycle connected to the stages of preconstruction, construction and post-construction stages. We're going to concentrate on the margin growth before and during construction, labor and customer in all the 3 stages of production cycle before construction, during construction and after construction. But I would just like to give you some details before we start. 100% of the actions we committed to deliver on MRV Day last year related to the beginning up to the beginning of the construction have been fulfilled. Many things have been discussed last year here. And so those things have been delivered. And currently, we are focused on our supply of labor and materials at the construction sites along with the management of assets and inventories.

Starting with margin expansion, looking at those 2 phases of the engineering process, I'd like to recover or recap the margin equation presented by Rafael as we started the day today. As per that margin equation, we have in engineering, as he said, 2 of the main drivers that are within engineering, product optimization and efficient execution of the works. That falls under the engineering umbrella and how do we approach that? That's what I want to show you in the next slide. Number one, Engineering does not start at the construction site. Of course, it works before. It starts before. And this is an example of how engineering starts by supporting the real estate development team led by Rafael Albuquerque, starting at the purchase of the land, ensuring that all the implementations are viable linked to the BIM, our technology for projects that we use, reducing future technical risks. So instead of talking about it, let me quickly show you how we do it. Let's see the first video clip, please. We apologize from the translation booth. We do not get the sound from the video clips. You only have the images. We apologize for that. So even before we apply all those elements, all the items from our parts catalog, we have already made available to all our engineering teams, which is a primary consumer of that information, if you will, so that with the support of the DI, which buys the land led by Thiago and with the engineering and production team led by me. Today, we have a catalog of parts, which is robust coming from a single source of information, which ensures standardization in the process. We have tools to simulate costs and deadlines. In line with our analysis, our budget and our time line. Just to give you a grasp of the time, construction work lasts about 25 months and involves throughout time, throughout the execution, we have 150, 200 people working at the same time. We buy from 7,000 to 8,000 items to build a site. So that needs to have standards, of course. And to support all the decisions, we have options so that the choices around leisure, recreational areas and private areas are able to really deliver something which is in line with the expectations of those clients in that region, as Rafael showed, based on the income, based on the demographic density, the competition in the region. So how to combine all that so that we can better develop and sell. We have to be able to estimate prices and time lines. Take a look at how this works. Once again, we apologize from the translation booth. We do not get the sound from the videos. Those products, those parts that we use and implement as we develop those projects, they went through an important process. Last year, I showed you the Luggo project which was linked to Luggo, the toy, which uses standardized parks. That project brought about important results, portfolio simplification because we managed to get reductions of 80% in variability for the types of apartments sold under the Minha Casa Minha Vida program to be able to meet demand from the 28 regional hubs and a drop to only 2 types of units to meet our SBPE line. In addition to revitalizing 50 leisure items in the creation of another 28 leisure items, all of that reducing unit costs by BRL 5,000 per unit. And with perspective of an impact on results down the road. So that's in addition to what Rafael mentioned just now, last year's launches, this year's launches, we see already a better efficiency from the product. That does not include this, right? This is looking to the future. So it's an additional efficiency level to be added down the road. And that has been made possible because we have adopted within MRV, a concept called simultaneous engineering, where we work in a multidisciplinary manner to ensure construction and also decisions being made at the right moment. Of course, making decisions as you execute the works that costs a lot more. So -- and the chance of making relevant changes is significantly lower. So from the engineering point of view, good decisions need to be made before and not after or as soon as possible. And we work with this concept, have been working with it for 2 years now. And today, we have a great team around products and projects with 250 engineers and architects, a multidisciplinary team, which has been able to make all of that possible. And I have a video to illustrate that once again. Once again, the translation booth is not getting the sound from the video, we apologize and we have been connecting all the disciplines I mentioned. We moved from 18 to 33 disciplines today being executed within the BIM, BIM technology. And all those disciplines impact our executive projects, projects around execution as the name says that will guide the execution down the road. And of course, that impacts another concept, which is the BIM compiler. The beauty of the process is that with the BIM, the BIM is a piece of data model. It's not a blueprint. We're able to extract from that model, quantitative data that will guide the execution of the subsequent processes, namely executive budgets, which are done within the SAP environment and all our execution planning, which happens under the project environment, our budget tool and our planning tool. Also feeding a live process of capacity planning so that we can have works starting with the most resources available possible, thus reducing the need for our engineers to work miracles, if you will, at the construction site. Let's see how that works. Once again, no sound from the video and the translation booth. Now everything is connected across data, budget and planning. Less manual work, more accuracy in budgeting, a more reliable database to plan for resources, thus raising the standard of production. That's how we raise the standard between engineering and execution, being ready to scale with efficiency. Okay. All that effort is not concentrated only on the construction planning phase. It starts before in the prework or peak construction phase. As it was said before by my colleagues, we have -- we place an effort on simplifying and optimizing our production chains through sequencing. So what Rafael Albuquerque showed when he talked about launches across 5 regions in the city can be translated into a digital product, which is called [indiscernible], where we are able to -- the yellow dot, I'm not really sure you can see it. The yellow dot is the launch. The orange dot is the foundation work and the green dot is where it comes -- where you build what we call the super structure. Today, we're able to simulate for the next 3 years variations across those 3 dots. What happened at the launch and the remaining of the chain and how we can better optimize the start of the construction, if we can push it back, if sales go really well, if we need to delay it for -- if we have problems with permits or whatever. So we can do that in the better way possible so that we can improve the company's productivity to synchronize the sales of speed of production or VSO. And at the end of the day, boosting margins, cash and diminishing the need to have CapEx in place to buy molds where there is no need for that. That is linked to something our CEO has mentioned. which is the possibility of with that yellow curve to sequence teams and gain productivity in a much better way than we did before, if you do not have the sequencing of events, then we need to hire and train and so on and so forth. That's a bad rationale when you do not have a sequencing ability. And of course, when you do, you have a better ability to improve margins. And then if we go to the construction site, we have the 360 platform, which is our cockpit, the cockpit for our engineers at the work site. It is through that the Work360 that they are able to monitor the construction work instead of talking about the concept, I'll show you how that works, the platform, the 360 platform. We present to you the new 360 journey, a new app and a new portal to monitor the execution of services at the construction site. The 360 portal is where you have all the planning available in a few clicks. All services can be monitored by this platform, by the portal, and it will be automatically shown as a production order on your smartphone. This will make organization a lot easier. Within each OP production order or PO, you'll be able to monitor labor allocation, quality services and the execution of services. Labor allocation will allow you to monitor all available workers from the moment they arrive at the work site, including outsourced employees. The digital FPOs are totally integrated to the service journey. You can make approvals, nonconformities with a few clicks and to finalize production measurement or assessment, the 360 journey will bring a lot of functionalities to make work at the site a lot more dynamic. The future of monitoring is in the palm of your hand with the 360 journey. And all of that leads us to maintain our ambition to reach 4% to 5% a month increase, reducing our -- the number of people that we have for each unit produced. This is a very critical topic in the civil construction industry today. We have been able to reduce that number in the past 4 years, moving from 5.5% to 4.5% last year. And we continue to have the ambition of reaching the level of 4% when we have our current production model in place. The ambition of taking our [ VP ] to something close to 4% to 5% production speed. That means an increase in the speed of production, 0.8% on top of 3.7%, a gain of 25% in productivity, which is feasible, we believe to be feasible, which in practice will translate into better deadlines and lower costs and thus more efficiency. But that's not only a promise that I make in the past few years, we have been monitoring the variation of our unit cost from a cash view, comparing that with our INCC from the pre-pandemic period. And today, we can safely say that 2025 was the year where our variation curve for cost of produced units was below the INCC curve in the same period. And we believe that for the coming 3 years, we will be able to operate our process, our engineering process with all the drivers I have mentioned, some of them at least today so that the production cost will vary at a lower level when compared to inflation that will lead those curves, green INCC and orange cost variation, they tend to disconnect or uncouple with the green above the orange, which is what we want.

To wrap up this process and to show you that what we've been doing is a very serious work with good people involved. I would play a video that shows the importance of this concept of an integrated technology of engineering process at MRV and the -- how this is recognized by the specialists. This journey has started more than 10 years ago. We implemented BIM as a corporate strategy. And today, we operate with more than 1,200 active projects and more than 2,000 users connected. In 2019, we were awarded the SindusCon award consolidating our leadership in the use of BIM. In 2022, we presented a case in the United States about our scale, automation and transformation capacity. 2025 in Holland, we took 2 international cases, how we use data of BIM models to optimize CapEx and how we show -- how we save thousands of hours by using APIs of Autodesk. In 2026, we are the final in the BIM Forum Brazil to along with Vale by showing this work that use BIM in all stages, design, conceptualization, 4D, 5D, attaining expressive strategy gains. And this is -- BIM is not a tool, it's a strategy that supports our operational efficiency, our excellence and our consistent capacity to generate value. Okay. Now moving on to the next chapter of our pillars, which is optimization of capital employed. I would like to show you this equation, and we're going to talk quickly about actions to reduce fixed assets. Our aluminum molds are used to make the concrete walls and what we're doing to reduce the inventory of materials. We believe in the potential to reduce BRL 300 million in addition with these 2 variables added. BRL 200 million is related to assets and equipment. When we standardize the SKU and I'm able to use it for longer, I have to adapt molds less, and we're also able to sequence our projects more, reducing idle equipment, we believe we can build more apartments with even fewer assets. In terms of materials, we also believe that the implementation of a push moldl with the supply of materials and with the material requirement planning concept added to the cleanup of master data. We have 8,000 items used in the construction, 8,000 cost compositions. So that's when we join materials and services that deliver a component, which is a step in the performance of the construction. So the construction has to be planned with these compositions with this level of losses and usage, all of that has to be calculated so that we have consistent data, integrated PAN, P-A-N, integration of BIM, B-I-M and SAP so we can implement distribution centers that will help us to consolidate inventory at these regional centers so that we don't have to have inventories in every construction site, especially a curve items. So when we integrate all that, there is an opportunity to have gains. In terms of aluminum molds, we did a very interesting work, a beautiful work, defining 3 operational nodes. And for node 1, that's the hub of molds of MRV that takes care of the storage of parts that are not being used. We today have industrial warehouses with shelves for storage with control of incoming and outgoing units and distribution. It's a beautiful work that helps us to enable an important reduction of 52% in operational costs as well as to -- in our ambition to capture the reduction of assets. And in terms of material supply, everything we're doing reduce related to the management of data, estimates of construction work, BIM and cloud, all of that enables us to produce more with less inventory, with fewer ruptures in the production lines at lower costs. All of that is done at the same time. So our challenge now is within the construction site limits in a detailed work to identify opportunities for better supply, better logistics floor by floor, room by room in the apartment in all the steps of the production microflow to make sure we increase productivity to reduce terms and costs. And obviously, we don't do this alone. There's a huge team that works with us, our people. And from our people, we want to reinforce that we have a high-performance team that are the sales leader -- that are senior leaders. We today have 350 engineers, work engineers, safety work, construction engineers and working in the -- on the land. They've been with us on average for 7 years to 14 years. So the leadership is very mature and committed. But our work with people doesn't stop here. We are also working with the intermediate or middle management. And these are people we don't talk too much about, which are the people in charge of warehouses and also the construction on the work site. So we are working with the human development team to train them on leadership skills, soft skills so that they can be better leaders on the workforce that's working directly on the construction sites. And that our labor, our workforce is the greatest opportunity and at the same time, the greatest challenge of the construction industry in Brazil. And we are doing a huge work to manage the entire journey of the workforce within MRV. There are 3 major steps, balance between demand and supply for these labor in each of these 28 centers with actions to hire and have an active management of turnover of labor and also making partnerships with several institutes for benefits, being a green blood, as we say. And naturally, all of that supported by an efficiency layer that works on training and productivity. We are strengthening all the links related to people. We have a high-performance team, and we are ready. It's important that you understand that we are ready to grow the production of MRV by increased productivity, therefore, with lower operational risk and increase our capacity as transfers come with increase in the sales of supply with more transfers, we should be able to answer to that adequately. And to wrap up, our customers. That's the reason why we operate. And in terms of customers, we monitor with NPS several points of the journey -- relationship journey of customers with MRV. And we are very proud to say that it has advanced more than 60% going from a global NPS rank of 43 in 2019 to 69 in 2025, which is outstanding. So we want to make sure we deliver the best product and the best service to our customers. And we are not seeing that. Several institutes in Brazil reaffirm that what we do at MRV is a benchmark. Just to highlight Consumidor Moderno, modern consumer, we have been awarded 4 times at Mesc, 4x been awarded Reclame Aqui, which is a place you can record your complaints. We do very well there. So just to reaffirm our commitment to our customers because we will -- this year, we will attain the figure of 550,000 keys delivered with another 100,000 to be delivered. And I want to show you proudly what we deliver at the end of the construction. And then Ricardo Pachon will take over.

That's a lot, isn't it? Well, my role now is to try to summarize what we've seen so far and talk more about the financials, all this improvement in operations, marketing capacity increased and all these operational initiatives we've seen. So first, I'll go through the guidance of 2025, what we attained, and then give you an update on our strategic plan. And then I'll talk about that, about the development of our assignment liabilities. And first, regard the guidance, we had a net operating revenue between [ BRL 9.5 billion and BRL 10.5 billion. We attained BRL 100 million, ] so slightly above the medium point. Gross margin, we have attained -- we had promised between 29% to 30%. We are above guidance with 30.4%. Net income from BRL 650 million to BRL 750 million, we delivered BRL 611 million. We are below -- slightly below the lower guidance of the lower part of the guidance. Cash generation, we promised from BRL 500 million to BRL 700 million, we delivered BRL 58 million, very -- a lot below what we planned. And the main reason is the mismatch in the production and transfer. We produced 5,000 more units than we transferred in '25 with a gap of BRL 600 million that will be captured in future years. In terms of our vision, the vision of MRV real estate development, 40, 35%, 15%, 15%, 40,000 units with an operation with a volume of 40,000 units, 35% of gross margin, 15% of net margin and 15% cash generation. And the first metric of 40,000 units per year, we sold 37,500 units sold. We produced slightly above 40,000. We used to say 40,000 at an average price of BRL 550,000, BRL 10 billion. So it's the second consecutive year that we exceed BRL 10 billion in net sales. So that has been attained. With BRL 10 billion of net sales for 2 consecutive years and high production, we delivered BRL 10 billion in net operating revenues. So that metric was attained. Then the gross margin, out of 35%, the gross margin of new sales has closed the year at 35%. That's for the fourth quarter of 2025. The accounting gross margin is developing 4 percentage points better from '24 to '25 and 7 percentage points from '23 to '25, 31% of gross margin for the fourth quarter in a clear improved upward trend. So we'll continue to improve so that the gap is lower and lower. And when we made this plan 40, 35%, 15%, 15%, we estimated a certain dilution of SG&A and financial expenses in order to reach the 35% of gross margin to 15% of net margin. We are below what we had envisaged for SG&A. We have more efficient expenses regarding revenue. And our gap today is at financial expenses. So our cash generation has not yet attained what we planned, and I just told you why. And from now on, what we envisage is a greater alignment between the number of units sold and transferred and produced. This, with a healthy gross margin, allows us to bridge that gap. Several initiatives were mentioned here, purchase of land and majorly with land swaps and -- but there are other leverages that allow us the conversion from net income to cash to increase in coming periods. And it's very likely that in the future, we'll have more generation than profit during certain periods. And this is the update to our plan, and we remain confident that we'll deliver all the other metrics. Talking about debt, our operational improvement has reduced the leveraging without any adjustment. Last year, we are close to breakeven so this improvement is much more based on the improvement of EBITDA rather than the reduction of the net debt. So EBITDA will continue to improve and so the denominator improves this indicator, and we'll see a more consistent cash generation with a reduction of net debt. So we'll attain even more comfortable levels than we have today. Another important point about that is the breakdown of that. This is the schedule for maturity of MRD debt. The orange bars are funding for construction and the green bars are the corporate debt. The main takeaway of this slide, those who talk to us often know that we try to pay in advance as much as possible. And we start the year 2026 with no need for funding for the next 2 years. We have BRL 300 million corporate debt to mature in the next 2 years that will be paid with cash generation that will be much higher than we have in terms of debt maturing. In construction funding, that is amortized with the receipt of credit. And we have this schedule for -- we can do more liability management. We'll keep an eye on opportunities. But now with a different scenario, we'll raise funds when it's a better moment and not when we need to. Within this topic, we've talked about the assignment of portfolio, the pro soluto and the Flex portfolio. Assignment of receivables is part of our asset-light strategy. And the first is about the Flex. This is the funding of direct portfolio. All the credit that I provide today is a direct credit line, I assign that. We have been able to do this right away. So I assign for the same value. The end customers pay interest directly to the investor of the receivables. We are assigning receivables to institutional groups, institutional investors and individuals. And when the person receives the key, it's a true sale. So it's off the balance sheet, which makes it easier to include -- show the financial statements. So now the pro solute assigned, we pay for financial expenses of this portfolio that is above what we receive from customers. So I have accrued expenses. This pro solute that stayed in our liabilities went from BRL 1.85 billion in the fourth Q of '24. And during 2025, we are assigning trade receivables off the balance sheet consistently that simplifies financial projections and allow for greater, more predictable results. We're able to reduce the pro solute liability by 26%. We ended the fourth quarter with BRL 1.364 billion. In the future, we'll continue to assign trade receivables off balance sheet, and we'll see this losing relevance in the company. And this BRL 1.364 will continue to drop in the next 2 years until it's zeroed. And there will be nothing to discuss about that anymore. And throughout the presentations, you've seen several initiatives to grow margin. And what I allow you is a summary to improve operational efficiency, the new topologies that helps to increase margin. We have decreased the productivity. And the part of capital employed, we have a reduction of inventory. We also have a reduction of the fixed asset in fullness and accounts receivable that I cannot promise it will fall. It won't, but it will grow slower than our sales. We have price going up in the future, volume going up in the future. So our accounts receivable will go up less than our sales focused on a shorter term and our pro solute after delivery, which is also important going forward. So this is a sensitivity analysis for returns. On the left-hand side of the slide, I have a simulation of the return on equity on that plan, 40% 35%, 15%. BRL 1.5 billion of net profit, return on equity of [ BRL 4.9 billion ]. We have between BRL 6 billion and BRL 7 billion in equity, we're talking about a company between 22% to 25% of return on equity, much stronger number than we presented today. And when we get there, it will be the best return the company will have given since the IPO cycle. As for the other simulation, a bit of ROIC, return on investment, BRL 1.5 billion net profit on the NOPAT of BRL 2 billion of the invested capital. We have a chance without affirming to have an important reduction in employed capital. So when we reach that number, BRL 1.5 billion and BRL 2 billion of NOPAT, we'll be talking about a return of 30%, 30% return, a ROIC of about 30%, also the best return indicator in our history since the IPO. That's what I had. I'd like to invite Matthias now to talk about the Resia. Thank you. Over to you, Matthias.

Good morning. We do not know each other, so I introduce myself first. As you noticed, I'm not from [ Minas, ] I'm not Brazilian. I'm from Argentina. I've lived in New York for 20 years now. I'm the CEO of Menfis, for family and strategy and a Board member of Resia. I've been working with the Menin family for 1.5 years. Menfis is a family holding from the Menin family based in the U.S., which has an objective to look at the company's capital outside the operations and inside the operations. The idea is to complement the entrepreneurship business of the family with some more sophisticated analysis in terms of capital allocation, risk-adjusted returns for the Menin family businesses. In addition, I have some involvement in some of the families' businesses. I'm a Board member of [indiscernible], MRV, a Board member of Resia and on committee operation -- operating committee and also an adviser for Resia. The MRV team has invited me to explain what we have been doing before this 1.5 years. I was an investment banker for 20 years, the past 10 years at Goldman Sachs, where I worked first in the American market, working with financial institutions in the U.S. during the global financial crisis. And then for 10 years, I had different leading positions in Latin America. In the past 10 years, I led financial banks in the America and Latin America and Argentina. And then I worked for Goldman also covering Latin America. So the idea here is to -- with only 6 slides to briefly go over the industry very briefly, what we talk in terms of Resia's strategy, what we did well, what we did well, what we have to improve and what we are doing. It's an important word for you is to the word derisking. That's the main takeaway, derisking, Resia's derisking. The sector industry context. We do not control that data. Rafa mentioned, it's a good market, but in the short run, the business has been facing difficulties. So we captured that information to make decisions involving Resia, high interest rates, soft rents, a lot of -- and also excessive supply. So what do we talk with the market? Five things, mainly, streamlining our operation and organization, reduction of the land bank, limit new launches and have an asset-light structure using third-party equity to conclude the sale of ready projects and also to reduce leveraging and generate cash. That's all good, the first 3 points, I think we did well. The last 2 points, I think we need to improve. And I'll be talking about each of those points. G&A, a lot of information on the release, you know about that. This is a difficult type of work, not easy to make decisions. Headcount from 160 to 50. We were confident that, that was needed for the derisking and to decrease the expense flow that the company had. That has already happened, okay? This is past. This is done and over with. We will continue to do, but what you see here is done. We have addressed that expense flow issue. Land bank. We had [ USD 1 billion ] in assets in '24, 1/3 of that was under the land bank. With the land bank, we can do 3 things. You can develop, you can sell, we can wait to wait one of those 2 things later. We decide what to do. Let's place land bank and sales because we want to develop. We have a lot of land bank. The market is difficult and so on and so forth. And I think we did some of that. We reduced by 1/3 our total land bank, and the land bank we had in June that we're going to sell, we sold or either move to impairment. So that's something we did. 7 to 11 land at the end of December. If we include those 2 lands sold in January, that number goes up to 9. So this is happening, okay? Also important. The land bank has 2 problems, 2 issues. One, the amount of the asset. There is no income, but there is a carryover cost. Number two, we need to do something. If we develop that land bank, the land bank moves to projects under construction, but a lot of risk going forward. Land bank, 10%, 15% of the risk which will increase. So not developing means not increase the future risk of Resia. So we continue to reduce the land bank. Projects under construction, that has really decreased because the projects we had in construction now are rented and we do not have new projects, only one new project, which had started before December 2024, which is North City, where we have a third-party structure and it's not part of the balance sheet. So we thought that the future risk of Resia is much lower now. We have a smaller land bank, that land bank will only diminish, decrease, okay, and no risk associated with new projects. As for new projects, we only have the North City in place, okay? Well, that's where the problem is today. We said that we're going to sell the assets in 2 years. We said that last year, we didn't do that. It had to be done, but it was not. Why not? Two reasons because we need to have the projects leased for them to sell. But what we did was the following. The lease values improved. It improved where it had to improve? No. But it has evolved from December '24 to December '25. And today, February, those numbers are even higher, okay? This is evolving, but we have not been able to do it in the time we wanted and in the time we told investors we would because we didn't have those higher sales. We were not able to deleverage the business. We were not able to generate the cash we were expecting to generate. But the cash burn still comes down because we are doing new developments. We are quite focused on this, okay, expenses. Net debt for USD 156 million, that's a negative carry, which is quite important because we're focused on selling or leasing assets. Operating expenses, which is something we control, we have really decreased. Those are the main expenses we have today. And how are we going to solve that? So what are we going to do? What are we doing? We are continuing to reduce our corporate structure and operations. We continue to sell lands, which are earmarked for sales, and we continue to do what we think is right. We need to improve our locations and the sales process of concluded projects this year. So how are we going to do this? There are things we cannot control, the market, consumers or clients who are more indebted now, we cannot control, Trump's actions, we cannot control. We simulated the RPM company, providing consultancy helped us work on that. So we're trying to change that to be able to speed up the speed of leasings. As we're selling land in this past years, which was an easier market, we would lease stable for some plants, would remove the concessions, would call in a broker, the broker would take over the process in a month, would find a buyer and then the buyer would come in or get out. So if the market is good, always good, today, there is more uncertainty as we want to improve the certainty of being able to sell those projects this year, having a direct proactive relationship with the main buyers of multifamily in the past to be able to have a direct relationship with them now with all the properties involved. We're not going to wait for that to happen. You want to have that in place now, understand the price or the cost of the property now so that we can have, within what we control, more certainty when we can do the sale of those assets, which is quite important for Resia. So what we have in our balance sheet today? In the future, I've mentioned land bank going down, projects under construction zero. So the main issue is to solve the existing balance sheet, USD 880 million. USD 508 million, 5 projects, 4 in pre-projects and Golden Glades. USD 60 million land bank, which has already been impaired by 50% only the first phase. This is 2/3 of Brazil's balance sheet, 2/3. Making those sales improves significantly. So we are quite focused on doing that within the time line that we mentioned, which is at the end of 2026. Then we have another land areas. Those are better land that could be developed. And what happened? And yesterday, we talked about Resia will not start a new project under this new structure. We made a difficult decision of not developing those land banks to simplify MRV as the holding company. And because the market is difficult, we continue to look at our bar is a lot higher today to make new developments today. So it's taking a bit more time than USD 108 million, including the minority stakes, manufacturing facility, 2%, 3% of minority holdings and then cash, USD 47 million. This is what the balance sheet is. This is a derisking of Resia. What we need to do? We need to make the sales, and we're working on it, and we're moving forward to make those sales. We're going to simplify the structure. We're going to have new ways to operate the company, releasing projects and maximize value for MRV shareholders. So the derisking Resia. I'm going to speak in English now because it's important and I want to be precise. Okay. To focus on sales and prudent management of remaining assets in the balance sheet. And the last message, we are highly focused and looking at the shareholders of MRV to reduce materially the risk of Resia in the business of MRV & Co. Thank you very much. And I'm sorry for my Portuñol.

I think it's very clear. So wrapping up, we are running a bit late, and I'll be very brief because there are some important messages that were given today. And I would like you to take this opportunity to remember the main topics because a lot was said today. I was watching each of our executives speak and a very important topic mentioned was people. And we talked about people all the time. Our industry is highly dependent on management of people. And at the work site on the field. And this is one of the main differentiators of the company throughout its 46 years and remains so. I was calculating, in total, something close to 110 years of experience in the real estate market have gone through this stage with the people that talk today. That's a major differentiation point for MRV. People who know their business, they master this industry that used to be very craft work, but now it's highly sophisticated. So some messages are important, and I'll close by talking about the state of mind of MRV today. Today, it was said that the market has never been so favorable. A lot was said about My House, My Life, housing program in the past. This program has been through 5 different presidents, administrations, and it remains the same, and it has only improved with new sources of funding in 2025, and this social fund has even improved for 2026. So what's being done in Brazil has a total focus on improving housing and reducing the housing deficit in Brazil. And we have a huge market out there that is beneficial for everyone. But we have the strongest brand in the market. And that makes a huge difference, especially at times when the economy is relatively confused and the strength of the brand is key. And sometimes it's a subjective thing, but it makes a huge difference in the decision of consumers. The increase of VSO sales of supply, when we look forward, what would be the answer to be -- the question to be answered. Yesterday, I said at the earnings conference call, the first quarter of 2026 was considerably better than the same period of 2025, right Thiago? And we remain with our goal to accelerate sales of supply. That's important to balance between -- to accelerate the balance of units produced and sales. But there's something else important that you saw here. As Thiago mentioned, every sale we make now enters an efficiency funnel of MRV that's never been so good. Each unit sold enters this efficiency -- operational efficiency funnel that's never been so good. I've been with the company for 33 years, and it's never been so sophisticated in its processes. And in these last 4 years have been very important in terms of operational efficiency. We tried to show you in the 3 hours what was done in this last year that will improve our pipeline. So our challenge to grow the sales of supply this year will increase sales. So a company that is now with BRL 10 billion in revenue is reaping the benefits of this dilution, and this will continue to happen because the operational efficiency of MRV is at this great level. And I know the industry very well. So there's no other company with this level of operational efficiency and maturity as we have. So we're talking about 35% margin for new sales in which we ended 2025 in a scenario that's relatively conservative. That's what we learned to calculate after the pandemic, but that's not what we see moving forward as everything we're developing becomes operational. That's a strong message. We will -- everything that will be sold this year and we'll sell more at higher speed will enter an efficiency level that's much higher. So this is an exceptional prospect for the company. I see a company that's never been so efficient in terms of return and margin and efficiency. So return and efficiency are in the base of the company and the company's fundamentals. So the company is more profitable, not only because of the margin that's growing, but we have a lighter balance sheet. We are in the beginning of this journey, but we're taking consistent steps as [indiscernible] proved. So the strategic footprint is strategic as the name says. What is happening in Sao Paulo, unfortunately, is a reality of Brazil. This will happen, and it takes place in Sao Paulo and other cities. For us, that becomes an important strategic protection. The company produces in an efficient way in 22 states of Brazil. And the least -- the last state we've entered that was 10 years ago. So we talked a lot about complexity and how this can be a problem, but this is our strength. There is an operational efficiency spread throughout the country. That's an important protection cushion for MRV. And among the mantras brought by Rafael in the beginning, they're all consolidated in the company. If you talk to each of our executives, all of them will say the same, all the incentives we have designed for the top management of the company consider this as a mantra that Rafa mentioned in the beginning. And Matias talked about tough decisions. Yes, they are tough, they are difficult, especially when we believe in what we were doing, right, Matias? But we made those decisions. We talked about that in the call yesterday, and we reaffirm that the decision not to have any new projects in Resia under the structure of MRV. That was mentioned as a derisking decision by Matias, and that's important. It's a very mature decision that will have important impacts for us in the future. And bringing all that together, I've mentioned that for more than once and yesterday also, MRV is a company that runs at a level of production, delivery of units, sales, transfers that you know so well. You know our industry very well. That's a very long cycle that only ends at the keys delivery. Until that happens, there is risk because costs happen increase with some frequency in our industry. Everything that Ronaldo [ Rafinha ] mentioned in terms of efficiency decreases this week for MRV. But most important is the fact that we are already running at that level. So I've been delivering 40,000 units per year for many years. So we launch, we sell, we produce, we deliver, we transfer. The cycle is around and closed for many years. MRV has a revenue that's very close to sales. All the metrics are the same. That means also that is a differentiation point. MRV has the lowest execution risk in the market. The market is strong. There is a huge demand. It's the best industry to be because constantly, demand is higher than supply. That's good for all the companies, but many companies still face the challenge of closing the cycle at a level of growth. That takes time and there is risk involved. But at MRV, we've been running at that level for many years. In cities where we decided to stay, we've been there for at least 10 years. We deliver stability, efficiency, which is a great differentiation for us. When we add together everything we've seen here, the operational pipeline of the company, the lower risk of execution in the market, I can only see 2026, '27, '28 with growing results for the company. I honestly think that MRV is at the position to capture more from this market with higher efficiency and faster than any other company with lower risks given our strategic footprint because we are -- there's no catch-up in sales and transference sales to be made, we have reached that. Now we have to go to the Q&A session. So what's the state of mind of the company today? That's key and hard to capture. The state of mind of MRV is the following. We are the leader company. We believe in what we do. We've been through a turnaround that's now in the past. And now our ambitions have been reset. Thiago talked about growth. We have a very clear view that everything we need to do to go, to move faster is in-house already. that's been built for many years. We're just refeeding the pipeline with greater efficiency. So the state of mind of the company is the highest possible. We have the ambition to do more and to wrap up, as Resia said in the beginning, do to make MRV the best in history, the best and the greatest. And this is our ambition, of all of us. It's also the ambition of the entire company. If you sit down to -- with any executive of the company, this is the state of mind of MRV. The company is definitely at a higher level with a different set of ambitions, and it has all the conditions to deliver the best MRV ever. Okay. Let's move on to the Q&A. Thank you all for attending. And let's have the chairs up on stage for the Q&A session.

Okay. I'll start here.

Bruno Mendonca from Bradesco BBI. I have 2 questions. One about the investment vehicle, MRV. You're talking a lot about prospect of turnaround in cash generation and acceleration of this process. Maybe the end marker of this turnaround for shareholders is the payment of dividends. When you look at the company in those projections, what do you envisage as the timing for MRV to go back to paying dividends? And what are the main indicators that you look into to make that decision with the Board or as an Executive Board to pay dividends to shareholders? And the second question to -- about Resia. It's a strong decision not to start any new projects under the MRV umbrella. However, that also means that removing MRV from Resia -- Resia from MRV to another to grow is different from what we envisaged in the past, maybe unlocking value or investing capital. When you say that Resia doesn't have any new projects, it's officially in the wind-up mode or liquidation mode, what will you do to remove it from MRV while you still believe that -- you still say that you believe in the model?

Okay, Bruno, thank you for the questions. Regarding dividends, a super important point is the cash dynamic of this industry, especially in the low to middle income segment. When we follow with discipline, the project generates cash and during execution. In the past -- in the recent past, this was not true for us. In the not so recent past, that was true for many, many years, so much so that MRV, in terms of dividends, in the previous cycle, we generated BRL 3 billion in value for our shareholders. And in the current model is even more efficient than it was in the past. It will allow us, as [indiscernible] said, the cash generation dynamics can be even more positive than the net income one. As we increase profitability, as we ensure stability between transfer and production with growing margins, the company -- naturally, the company will generate a lot of cash. But looking at the cash surplus, the main focus is to deleverage the company. The company, since the IPO, I mean, perhaps even before the IPO, we've always had a mindset which is more conservative in terms of looking at the balance sheet. For decades, we were a company where we had no leverage at all. And then from '22 to '23, we allocated capital across different initiatives in addition to not generating cash from our cash [indiscernible]. So we already have a surplus of cash, have generated cash in Q4. We do have a robust cash generation now. This will be used first to deleverage the company, take the company to a leverage level, which is low. And then from then on, we'll resume a position where we can also resume dividend payouts. I cannot give you a guidance as for the timing, right? We've talked about operating metrics to increase profitability, to improve return over invested capital. So throughout time, we expect to have growing net profit and growing cash generation. And dividend payout will be a consequence. We first deleverage and then we'll move on to paying out dividends -- dividend payout or buyback or whatever. That's an easy decision to make, more difficult is to have an operation of high quality operationally speaking, in terms of profitability and return on allocated capital. And I am sure that we are on the right track to deliver those 2 items at a very high level. As to Resia, Matias shared the company's balance sheet with us. It was a decision that we made, which was difficult because we believe that the cycle starting now is a very positive one for the multifamily market. At the same time, we need to manage a company delivering 40,000-plus units a year in Brazil and 28 regional centers. That's no trivial, no easy task. We have teams, processes in place. We do have the know-how, of course. But still, we understand that the current moment is -- requires us to focus on Brazil to make sure that the next 3 years, starting now in '26, will be a 3-year cycle, which will be spectacular for MRV Brazil. So we made that decision. So from now on, we need to deleverage Resia, reduce Resia's balance sheet in a way to generate value. Matias showed you the number. It's an important number, USD 800 million in assets. It's a lot of money, and it will make a huge difference for MRV in terms of balance sheet. We could do that fast. It's a trade-off. Do it fast means bring cash in to deleverage quickly. But at the same time, we would destroy some value if we sell too fast. So what we try to do is to have the option of making the sale of those assets at the best possible pace. We didn't get the question in the booth. Well, to have a spin-off of an operation of USD 800 million is complex. In a year, 1.5 years, 2 years, Resia or whatever is left of Resia under MRV is very little. So whatever the design is going forward, it will be a simple movement as we see it. Again, that's a choice, which is even simpler, but we are sure that we'll be deleveraging or recycling those USD 800 million throughout the next periods, quarters, okay? As a complement, until 90% of the way, it's the same thing, deleverage and sell assets. Down the road, spin-off or sale, whatever that will decide it when we come to that bridge. In addition to the split, it's important to highlight, when we announced, we have no developed under MRV from Resia, I have to look at before what we said was we're going to sell and have few developments and to slowly deleverage, selling more than what we do. But we announced, we are going to have fewer projects, and we would retain some land. To do that, you have to model what kind of developments, good or bad, 5 years in the process, a new risk for 5 years. So that's out of the table now. So that's an important change in terms of the risk profile of the company, right? No more projects on the table.

This is Elvis from Itau BBA. Two questions. MRV Brazil, Minha Casa, Minha Vida, you mentioned that the operation wants to achieve higher margins. And you said that the VSO will help on both fronts. But I'd like to understand how you see -- how will this FVSO expand as you reduce pro-solute? And what are the assumptions behind those moves? Changes in Minha Casa, Minha Vida that might come to happen going forward, will they account for that increase in VSO? Or can you do it in a more relevant way through your internal mechanisms that you mentioned during the presentation? And a second question about Resia. Matias did mention this -- mentioned the projects and mentioned also the phases, rent. I understood that you are doing the sale before the lease-up. But as this challenge came up midcourse, this may impact the Vida sales of the projects. So is that plan still valid of selling all projects in 2026? And what would be the risks if that doesn't happen?

[ Fisher ] and Thiago will address VSO Minha Casa, Minha Vida and then Matias will address the second question about Resia, the derisking work we're doing, lease-up and sale, which has a specific dynamics for each market and also talk a bit about the cycle, which is now coming to a close. And looking forward, looking at the margin, it's not something fast, but for the margins, we expect a recovery in the multifamily market, okay?

Good afternoon. I talked about that in my closing remarks. VSO is the main driver for us to bring those numbers in. That's our obsession, if you will. Two things there to mention. What you said about Minha Casa, Minha Vida, there is a change coming up late in the month. Of course, that helps us. It's a positive impact for us to be able to reduce our portfolio so that we can support the increasing prices above inflation, as we mentioned, that's key. But if I were to allocate weight to those things, I would allocate a higher weight to whatever is inside, in-house. Thiago mentioned the need for us to grow our team, our growing teams of brokers and managers, investments in technology and training that we are making for those people. So the external market has never been so favorable, and it does support what we want to do. It might sound contradictory, but it's not. With everything that is happening in terms of external wins providing support, a tailwind, we are able to reach over inflation prices, a reduction in portfolio and an increase in speed. That's all viable. We can already taste that when we're able to see those internal efficiency levers are moving. Thiago will say that in a moment, but I am quite confident that, that's happening in-house or most of it happening in-house. And being in-house, our ability to make a difference is much higher than if we were to depend from external sources. As a complement, the main thing here is balance. We're looking at the improvements in the program with a view from the different centers, and how that improvement impacts each of those regions where we operate? And some we will capture more VSO and others, we'll capture a reduction of pro-solute. And most of it, we will capture margin with all the internal support mentioned by [ Fischer ] in terms of technology, speed and people. And as I mentioned, the reduction of discrepancies of gap. We still have the huge reduction in discrepancies across those centers, and they're being captured through the expansion of our sales team, new launches as we mentioned, having a more efficient portfolio, more connected with the needs of the respective centers and respecting the new ceilings of income and of pricing. So this new portfolio, combined with what we launched last year, will be an important driver for our VSO along with the expansion of margin and reduction of pro-solute. I'm not going to give forward-looking guidance. I've talked about the land bank. We're trying to sell the land bank. When we get a buyer, we have a due diligence and we sell it. The 5 projects, USD 500 million, we have 4 projects in Golden Glades. Golden Glades is a newer project in an area, which -- good industry trends. We have equity partners, a different capital structure. So that project specifically is not delayed, if you will. We just built it recently. It has to evolve. We need to reach the lease-up period. So it's a more traditional -- the impaired projects, those projects are in different stages of stabilization. So one of them is already stabilized. And that's the most obvious one for us to find a buyer, have the appropriate contract and sell the asset. Rayzor Ranch is a smaller, fewer units project. This is moving forward. And then we have 2 others, which are of lower stability, more units, and we are working hard to improve lease and stabilization. And the math that Rafael mentioned is the following. We are engaging investors, potential buyers to try to understand the value of the market value. Today is a stable moment so the math we need to do needs to be very disciplined to sell and generate cash and not have additional losses. I'll give you an extreme example. If I think that [ Willows ] or Memorial will have the same stabilization today as in 1 year, I need to sell. If we're doing a good job to stabilize it and each month we move forward, stabilization increases, it makes sense to wait for a few months to make the sale. That's what we're doing right now. I think the important difference to note compared to the past is that we are monitoring closer lease and sale, not only lease-up and then lease and then sale, we are working close -- monitoring those 2 items closer now. Matias, just, and I also did mention something, we created a funnel to have a more fluid sales process with more potential buyers coming in. But please, over to you. I'm already answering for you, so.

So I think -- well, again, personal disclaimer. I do not know much rent and lease. I know M&As, right? What we discussed at the Board level at Resia and MRV is to provide certainty or reduce risks, execution risks and not risk in process. And a way to do that is to improve lease, but there's a competition. We are the only developer that have a lease problem because the market is soft. The sales process, we cannot define the sale price. That depends on the buyer. But what we can improve is the control, the process, the sales process, not the price, but the process. So we are in very proactive negotiation with the main buyers and getting feedback from them, what the value is, what the value is not, what we could do to improve the value. We're doing that with buyers, potential buyers. And then the Boards, the respective Boards, we need to define when we have a buyer, the right buyer for the right price to make the sale when. Without giving a forward-looking statements, we're talking about USD 800 million in 2024 and July last year. We're going to sell those projects in 2025. This is 2026 March, right? It is clear for us that time has a value. Time is of the essence. So we are working diligently to make those sales within the time line.

Two questions from UBS. The Resia issue of your lease performance in 2024 caught my attention. If you maintain the same performance you had in '24, '25. Now if you maintain the same performance, it would easily reach the level of [ 90 to 100, ] which should be considered stabilized. For the other 2 projects, Memorial and Rayzor Ranch, you may be falling slightly short. But within that context, I'd like to hear from you from the operational part of leasing, what strategy have you been adopting for this year to try and speed up the lease? Have you been providing discounts? The final quartile is probably the most difficult, fewer units, the commercial effort was put in the beginning, so what are the strategies for lease? And my second question for MRV Brazil. In 2027, we are changing gears now to talk about the tax reform. We're now in a transition moment to the new tax law. So what -- where are the discussions, right? Are you ready to -- 2027 to work under the new tax law? And the conversation with brokers and suppliers, where do they stand in terms of price adjustments and so on?

Okay. I'll answer and then Matias will talk about Rayzor. It's very uncertain, the tax reform. We are going -- studying that in depth now. And today, when we look, the main scenario is a migration from hedge to the new model as of 2027 from RET because the special tax regime, that is migration, will have a lower tax impact, especially when you have for MRV, there's [ BRL 100,000 ] that is important for us. At first, there is, in principle, the migration. We -- as I said yesterday, we don't have the sensitivity in our supply chain, what would be an impact for them, especially -- we're talking to them, especially on the ones that work more heavily with us. But even they do not know for sure the impact what will be. We're thinking that it will be neutral, the impact if it changes, this can -- if it's not, there can be change. We -- that's the main decision, but it's subject to some variation because there are so many details that the market is not aware of. So that's the answer regarding the value-added tax. Well, Rayzor Ranch is a property with fewer units. So increasing the lease-up is less difficult because there are fewer units to rent. So then we have to do the job of renting the property. Then we can improve better insurance, make it expenses more efficient, then we have to get the price to generate NOI. Once we are stable, there are people living in the apartments, when the buyer looks at the property, there is a base price, which is the replacement cost. We made an impairment. So we are -- we have an replacement cost. This is a new property built with amenities and people living there that will continue to live because it's a town, it's a city that has lots of people in demand. There is an oversupply issue and there is some time. We don't know when this will end. So first, we have to get stable and then how much I can improve rent to improve the NOI. We don't have the answer. We have to go through the process. If in the process, we changed the company that did the lease-up, RPM is a very well-known company. But this is something that many -- it's a service that many companies provide. So it's -- we changed the company. If we continue to increase the lease speed and improving rent, increasing rent, that generates an improvement. When we did the cost of renting, the cost of the property, how can we compare that to the sales price. Having said that, we increase and sell. If we're not -- we cannot increase, we would have a higher loss, but in order to generate cash and pay the debt and continue with the strategy we have. Did I answer your question?

I'm from Citi. First to Ronaldo. What is your main concern in production, labor, material, this gain in productivity that you need in order to be able to deliver on your budget? What is your main concern currently? And what has the company done to mitigate that problem? And the second question is a follow-up on Elvis' question as well as Thiago's part that would be more related to transfers above INCC regarding projects that have been launched and inventory units. This transfer is very important for the gross margin of new sales and also on sales margin at deliveries. In this equation of improving sales over supply, improving transfers of prices above inflation and reducing pro-solute, how do you think about this spread to INCC because there are so many avenues that you're trying to improve in terms of sales? And I would like to understand how transfers of prices above INCC go?

Okay. As everything in our industry, it's hard to say we have a silver bullet to concentrate on to say, well, this is where we're going to press the button or make this leap that will solve the problem. But undoubtedly, when we look at all the elements within the point of view of engineering, we are sure that the labor -- blue collar labor is the main challenge, not only of MRV, but of the industry. There is a long-term challenge in replacing that manpower because young Brazilians that are born today, the number of people willing to work in construction is smaller than 20 years ago. So naturally, this labor -- blue-collar labor number of people willing entering the market is smaller. And we'll have to make the changes that are possible given the labor issue because that's a given. So working on labor, and there are several points. If you remember the slide I show you, this is a journey that's connected to 8 or 9 initiatives to build the skills of this labor so that we can be the most attractive company of the industry. So we'll be attractive. These people, we say labor, but these people say, and we've seen statement in their surveys, they value their job at MRV because of how they're taken care of, all the recognition programs in terms of safety and health for these people. So labor, for sure, answering your question. And within those 9 items, doing all those things in an orchestrated way will be the main action to be taken to ensure that this labor becomes more skilled, that we can train them, retain them, and therefore, increase productivity at the construction sites to deliver what we kind of promise here.

I think we've been increasing prices for 4 years now. In the last 2 years, we made more higher increases in prices that had significant impact on the recovery of margins. In 2024 and 2025, the price adjustments were closer to the correction of prices, but always above INCC. And I believe that in 2026, it will fluctuate slightly above INCC. But the most important thing is that in the 28 centers we operate in, most of them, because we are larger and have a leadership position in top 1 and top 2, we are the benchmark for prices. So making prices go up and bring -- having this role in the market is important. Some markets are more competitive, more challenging, and you have to dose the adjustments seeking to adjust margins and optimize margins always. And we have to do this in a balanced way with the VSO, it's important to build steps through assessments. So this work with projects that is done in engineering allows us to work with cash to show the value of our properties, and therefore, be able to raise prices.

This is Fanny from Santander. I have a question for Matias. We talked about the development of rental prices, which is slower than historically seen at Resia. Well, my concern is you did the valuation based on a certain moment in time when you made the impairment with an expected NOI and the cap rate at which projects were being sold back then. How comfortable do you -- are you now with the level of the properties were marked at? How do you see those rental prices comparatively today at the prices you had estimated? I know that you based your assessment on a serious institution, Consark. Nobody expected a migration policy of Trump. There are a lot going on. There's a lot going on. And the second point is also there is a discussion in the U.S. about single-family investors not being able to invest in single-family properties anymore. But how does that increase or decrease demand for multifamily projects?

Well, when we made the impairment in July, that was based on the BOVs, brokers, we had to assume untrended NOI and stabilize. So they had the premise that we had -- his mic muted. Okay. So that the assumption was NOI, the same fee plus all the costs, everybody living, that's a value, VOE. That's very simplified. We had several brokers and so. But all -- everybody living with the NOI at that time. How do you compare that to today? In order to reach that NOI, we have to have properties stabilized. If we sell that's not stabilized or less equal should be -- value should be slightly smaller because the buyer has to finalize that. It's an NPV that he has to calculate. The second topic is rent. It's hard to give a general answer because it changes from property to property. Sometimes the rent increases, decreases 5% is less or if it's higher, it's higher. So the main difference is stabilization. If we're able to stabilize the properties and make the sale with a stable property and the market also changes, we can't control the cap rate. Each market has a different cap rate. The cap rate has not changed too much from -- since July. So I think the key to attain the impairment value is to have a good stabilization performance at a similar level of rents of apartments. The second question about single-family properties. There are policies that are changing in the United States, like I said, for single-family investments, buyers that look at Resia's properties are usually institutional market that are bigger institutions and other smaller multifamily experts, but it's a highly developed market. So I believe that this change has little impact on the timing or sales price of Resia. What most affects is what we can control, our performance, and things that we don't control, such as interest rates because it determines the cap rate and also if it's a value-add fund that has more return that cap A+ that will provide less return. So this will give -- provide different returns or buyers that are very active buyers who made developments in '20, '21, '22 are facing similar problems that we are. Those that made many sales in '21, '22 and have liquidity are being more aggressive. So they are willing to increase their exposure in the industry. I believe that this is more relevant than a policy A, B or C from the administration.

This is João Pedro from XP. I'd like to touch on the tax reform on the income statement, income tax. There will be a significant portion of the population that will no longer pay income tax, and we'll be encouraged to report their income. And I would like to understand on your side, what do you expect to change in terms of everyday sales? I believe Caixa will have a new task of assessing credit risk for these new buyers. Maybe those buyers will come to your sales stand. So what is -- what are the customers with informal income that buy from MRV? And how that increases your addressable market and may cause you to change the management of pro soluto and direct sales portfolio?

Okay, João. 30% of our buyers, as he just told me, are people with informal sources of income. So this answer has to be divided in 2 blocks. We have the amount of informal buyers that will become formal buyers. So they are no longer people that didn't pay tax and they will report their income. So Caixa can have a better assessment and Caixa risk assessment team is sitting next to you, so you can talk to them. So the propensity of Caixa to give more credit increases. So someone who used to be an informal income buyer that will become a formal income buyer. And there's also the people who already have an formal source of income and will have additional income. And in the future, the net -- the amount of available income will increase, and therefore, the credit facilities should increase. So first, people change their consumption habits and Caixa is able to measure those changes. And once those consumption habits have changed, Caixa has approved that they have a greater capacity to obtain credit. So there -- both of them are nodding. So I believe that that's what will happen.

Okay. Great. So this ends the Q&A session. Thank you very much for attending our event. If you have any questions that are unanswered, please send us to us and Augusto. We will be pleased to answer them. Thank you very much.