Ouro Fino Saúde Animal Participações S.A. (OFSA3) Earnings Call Transcript & Summary

[Interpreted] Hello. Good morning, everyone. You are welcome to Ourofino Day, event promoted by Ourofino's Health -- Animal Health. We are live from Ribeirao Preto, São Paulo Countryside. I am Juliana Matthes. I'm a worker here at Ourofino. I work in communication department, and we are going to address Ourofino [ Campo ], Ourofino Pet. So it's an honor to be here with you today. Our Ourofino Day this year is in a virtual way because of the pandemic scenario. I'd like to reinforce with all of you who are watching us and who is here in this event, we are following all these health measures to make sure that we have our safety in place. Ourofino Day will last about 2 hours. And throughout this time, you'll get to know the strategies of our company, our organizational culture, the work of our 3 business units, our operations in new businesses and our performance on financial fashion. And we are talking about the future. We have our feet now and are looking ahead at the future, going after opportunities for our segments. At the end of the presentations, we are having a quick break, 5-minute break, so that you can drink some water, to make a call, go to the restroom. And after, we resume our Q&A session. [Operator Instructions] As I said before, we are following all the safety measurements regarding health. We are going to have very few people on stage, and it's very important to know who you're going to direct your questions to. Our Ourofino Animal Health emerged from 2 visionary ones, Norival and Jardel. They are children friends from [ Inconfidence City ] in Minas Gerais state that was the district of Ouro Fino City. Ourofino Animal Health started its operation in June 1, 1987, in Ribeirao Preto City, manufacturing [ resufine ] powder, it's oriented to poultry and is still in our portfolio today. After 34 years of operations, our company is in the segments of production, animals, pet animals and also local commercial in Mexico, Colombia and other countries. We are very proud to say that we are the largest veterinarian industry in Brazil. And we are part of the team. We are every day willing to challenge the traditional thinking and put into motion our reimagination on animal field. We are Ourofino, and Ourofino is each one of us. We are that simplicity and restless. People like us. We plan each detail. And we think about the whole picture. However, this complicated, we reach [ gearing ] our goals, respecting differences in the environment. We are partnership and trust like this, everything together. And in turn, we are not only entrepreneurs, we are entrepreneurs in love for what we do. We dress up the same shirt, and we play to win. We are agile, and we don't let the ball fall. You know why? We wake up before the rooster sings. We are focused, engaged, and we believe. We challenge now and reimagine after the future. We are many, but we are unique, each one with a life story to tell. We value each step, each conquer, each smile. Yes. We are like that. We take care of people. We dream and pursue our dreams. And we carry out the dreams of others as well. We are connected with the world. Our DNA is to be a partner. We pursue innovation, and we are digital, not leaving the human warmth aside. Together, we are a team. We are Ourofino, Ourofino is each one of us. So Kleber Gomes, our first guest today is -- has been for 14 years in Ourofino animal area, in the Finance department. In 2016, he became CFO, and Relations with Investor CFO. He led strategic planning of our company for the forthcoming years. And in 2019, he became the Vice President of Finance and Product. And on April 1, 2020, he took over the chair of Ourofino Animal Health. Good morning, Kleber. Welcome to Ourofino Day.

Good morning, Jul. Good morning, everyone. It's a great pleasure to welcome you at Ourofino Day, the sixth in our story and the first as CEO. It's virtual and live, we want to be close to you. Nothing is recorded, okay? As you said, our event will last about 2 hours. I hope that every one of you can stay up to the end. After, we are going to make available much information, understanding and the follow-up of the evolution in our business. Let's start by 2020. We know that we started the year with a very good expectation, expecting high growth in the beginning of the year, we had the global pandemic that brought with it volatilities, uncertainties. And it became an unprecedented challenge in history for us as a company and also as individuals. The global pandemic in 2020, it's going to be a mindset inflection point. Once it brought many changes, strong changes and permanent changes that are here to stay. Somehow, it's helped us to restate a certainty that we've always had here in Ourofino. We must be proactive, not active, and protagonists to remain in the market, standing out and following all the evolutions and [ pending ] points. Even the new consumption models, these digital consumption using technology. We have a certainty, and it's a very big one. The face-to-face model is vital. It's going to work together with the digital model. And we believe that human relations is behind each business. They are actually the differential among the companies. We will never lose our [ mees ], our human conditions. As I said before, regardless of the commercial model, access model, business model we adopt and that the other companies adopt, we believe in Ourofino that the passion, obsession for our customer is core. And every day, we go after transforming the customer journey in enchantment. To enchant everyone, this is the way we learned, and this is foreseen in our current culture. We are a company moved by purpose, by values. As you said, we have the purpose of reimagining animal health. So we wake up every day to promote and foster and lead the evolution of ecosystem of animal health. This is really strong and big. We are in the chain that feeds the world. And this makes our employees to be really engaged. Going over the pandemic, how we decided to face up to it. We decided to face up to it with courage and different from everything that we saw in Brazil because there was a dichotomy. And here in Ourofino, we didn't have any question. We established 2 pillars, equally valid. The first one, it was the health of our employees, and it still is. And the second pillar is the health and sustainability of our business. So like that, we faced up all of these in a transparent way with everyone, knowing the challenges and looking back, and we can say that we were really successful, facing up to the pandemic, delivering a great, the best financial outcomes and caring about our partners, employees and the communities where we are in. Leaving 2020 behind, I'd like to start talking about our strengths. Who Ourofino is? Why is it a company that stand out in the vet market? We are ranking third in Brazilian market. It's a market domained (sic) [ dominated ] by big global pharmaceutical companies and global -- Ourofino throughout history, create differentials to get ahead in this market. What are these strengths that we've built? This image is our site in Cravinhos City, near Ribeirao Preto, near [ Anhanguera] Road. It's an excellent site surrounded by universities, helping us to have skilled workers. And our utilities are really up to date, one of the best in the world structure, pondered for many years and vaccines, pharmaceutical products, hormone products and animal defensive ones. It will support our growth in the next years without any problem. We also have technology centers prepared, robust team of R&D. I will talk a little bit more about it, thinking about new solutions for the market. And for sure, this research center makes it possible to advance the plans and bring the best solutions for the markets where we operate in, and customize solutions for the countries where we work in, mainly considering the tropical weather. Throughout these 34 years of story, we built up a well-known and renowned brand well-known in the market partners: vets, store owners, farm animal producers. And our portfolio is very diversified and robust with opportunities for development yet. I'd like to draw your attention to one of the greatest differential of our company. Market access is very important for us. I'd like to tell you that in production animal, our model is different from competition. We go directly to the stores, to farms, production animals. We have about 5,000 customers every month. Pet animals, we work very closely to veterinarians. We pay about 5,000 visits monthly. We are differentiated in the market. We are closer to our customers. And with that, we bring better solutions. After having talked about our strengths, I'd like to talk about an important topic, which is ESG. It's been already discussed. Our company has always had this concern and have always pursued a balance between social, environmental, financial balance. If you want to have more information, we released the sustainability report since we opened the capital. It's not mandatory, but we do so. We released our sustainability report 2020 since March 4. It's available on our portal. There, you can find much information. I'm here to shed light on this topic. Talking about corporate governance and environment and social governance, this is a high level governance that we are having. We have many advisers, independent ones and nonindependent ones. We have Audit Committee, anticorruption policies. They are approved by our Board and released to everyone. We adopt the best practices, even the signatories of UN Pact. The global part is in our sustainability report. We are an industry that generates little waste. We have efficient policies to address the waste. The waste -- the little waste that we do, we reuse water. We use energy in a wise way and our compensation policies for the package or return processes that we generate. So the social aspect is obvious, it's in our major. Ourofino cares about people. It's included in our value since our foundation. And we want to return a little bit of our values to the society, our employees, our partners and customers. We strongly believe in human relations. After all, our strengths are in people. Everything goes around people, revolves around people. If we take good care of people, they will take good care of our customers and our businesses. This we saw in 2020, people engaged, as you can see, plural environment, respecting all diversity. And you can see the shine and -- in the smile of everyone. This is the way that we want to work here in Ourofino. Since 2019, I presented the strategic planning. It was our third cycle of strategic planning. It was about to be finished in 2019. Today, I'd like to speak a little. I'll let the directors to speak more our commitment during execution. The evolution we've had, it's been really positive, the strategic planning in 2020, preparing an agile modern contemporary aligned to trends company with a global vision. It's Ourofino 2.0. This planning started with various important pillars. They are 6. The first pillar is culture and governance. The first action to be taken was a successoree process. It was led at the end of 2019, beginning of 2020. Led by a renowned consulting company that looked at external applicants, but I had the honor and privilege to be appointed as CEO of the company as of April 1, 2020. In addition to that, we foresaw a restructuring in the Board. What I did right away when I took over the presidency of the company considering all the knowledge and vision ahead. Today, we have a renewed team. A team that prioritized Ourofino knowledge and a deep knowledge of the market. Undoubtedly, we have the best team of all the market throughout Latin America. Well, when I took over this position as President, the mandate I received was accelerate the company, mainly regarding products. It was good because I had, had a quick experience with the product. I had a good diagnosis. And we have a series of initiatives that will be shown ahead. I'd like to tell you quickly, and talk about people. We brought to R&D, [ here ], a new Director, he is a Ph.D. with international experience. He had lived for 15 years in the U.S. His name is Fernando Almeda. He's taking care of the acceleration of R&D. And we created a new Board that looks at the future, have the high headlight. Its strategy for new business is being led by a professional with almost 30 years of experience in multinational companies and several segments in the marketing and commercial, is [ Angelo Melo ]. For our next big front in the other countries in Latin America, our international operations, we also have a very experienced professional with almost 30 years of in-the-market experience in the external countries in Latin America. And he's been leading these expansion process is [ Guy Nobrega ]. We have several initiatives. I will not go into further details right now. And we are very aware of the market and the customer journey. In Ourofino, we believe in the [ enchantment ] power to provide a very good service associated with the sale of our products. And we'll keep on working strongly on that. As I said, we had a governance and culture pillar. And as soon as I took over this position, I had a feeling that it would be really necessary to change this land a little, and we started a [ cultural ] evolution process. I dedicated myself, a lot our directors dedicated themselves throughout the year. And there was something very good to listen to people. We did a survey with -- thoroughly made with our founders, the Board, all the employees in the company. They had the opportunity to express the values they see in the company at that moment, and what they wanted to see in the company. The good part is that this was well aligned with my management skills, and we added these 3 values. The first one is play to win. It has to do with ownership thinking. Execution as a team, and we go after superior and sustainable results. The second one is take care of people. It shows our passion for what we do. And mainly, our vocation to go beyond. Looking at our employees, our customers, our partners and at the communities we work in. And the value to connect with the world. It's our brand for innovation to follow the trends. It's our pinch of modernity that has to do with a global view, innovation, digitalization, continuous improvement. Transactions, strategic partnerships. I'm sure that the company today has a solid foundation and the purpose on animal health and the center of value is to play to win for people and connect with their world. So we changed behavior, performance, meritocracies, process. We renovated our utilities, our building. We knocked down all the walls in the building. We are making an all-out effort on culture and evolution. It's welcomed by everyone because they had the opportunity to build it up together with us. Bringing some examples of playing to win, I'd like to highlight the excellent result of 2020. It's unprecedented. It's fruit from our team that reinvented itself and experienced this value to play to it. We care for people. We had [ indentel sections ] and precedented to take care of physical balance of our workers' customers after you see in the presentation of the Directors. It's a record numbers of solidary initiatives. This is the way we contributed in this critical moment of pandemic, and this is care for people. And at the end, we are working very strongly on innovation. We have a well restructured way, design thinking to analyze the alternatives, digital alternatives for our business, and we have several initiatives. We have some prototypes, and we will bring many innovation, as usual. And we are aligned with the customer experience. It must be modified. This is what we mean connecting to -- with the world. And all the strengths that we have, agility, the solid foundations and the purposes and values. We are prepared to tackle all the market opportunities that emerged. Of course, it's essential, and it shows that the business -- this business is resilient and strong. We noticed that after the first uncertainty months our markets started growing again. And for production animals, we saw a scenario that was the following. We had an internal consumption reduction because of food service and restrictions with the restaurants, but there was a high demand of meat export, mainly from Asia or China. They are buying lots of protein and we saw the lack of animal in the field. And then the price of livestock at an unprecedented price and the producer invested to accelerate in the availability of animal to follow the market, and we captured values, and we grew a lot in production animals. Pet animals, we talk about humanization of pets. So we are more and more -- urban people live longer, they get married less. They have fewer children, and they adopt pets throughout their lives. And they treat them as family member. And in turn, they live longer and have more diseases. And that's where we get into place. So we took these -- the effect between the tutors and pet animals, and we observe it daily, closely. And the support is also emotional to the animal owners. After some restriction time and access to stores the market grew strongly. And we capture the value as well, and we go steady with the market evolution. And the commercial opportunities and operations internationally speaking as well was the value of dollar. This favored our exports helping capturing value in a segment that has been growing and will continue to do so in an organic way as well. To wrap up this first part, I'll come back at the end to make a wrap-up. I'd like to mention that we are well prepared as a company. We sowed good seeds this year. They will be reaped ahead, a company based on purpose and values. An incredible team in excellent markets with excellent growth drivers. We strongly believe that this company is prepared to capture much value in the future and the strategic value. Thank you, Ju.

Thank you, Kleber. You come back soon at the end of Ourofino Day. And for the year of 2020, it was a record in result. And the results of Ourofino Animal Health, our Financial Director, Marcelo Silva. He brings the history of this performance and our capital restructure. Marcelo, as Kleber, has been for 14 years in Ourofino. He worked in financial project areas, controllership and finance. Hello, Marcelo, good morning. Welcome.

Hello, Ju. Good morning. Good morning, everyone. As Kleber said, we started the year of 2020 accelerating in the initiatives and projects outlined in our strategic planning, focused on changing and making the company grow. And after the first quarters of expressive results, we grew at 23% in the pandemic scenario. We were obliged to imagine our operation together with our customers and the other links of our network. Although our segment was considered as essential and the activities are authorized to operate normally, the uncertainty in the moment isolation contributed to the retraction of our sales in April and May. Mainly impact factor, it was affected by the circulation of people in the main capital of the country to make sure that our customers would continue accessing our products and services. We intensified the digital access by webinars, virtual business fairs, technical trainings in a long agenda and also financial oriented trainings, work safety and health safety, to help them to direct their actions at those moment that were really difficult. So the rebound happened really quickly. In the third quarter, we saw a great growth in our business lines, influenced positively by the certifications, initiatives with our customers, favorable scenarios for export and protein price. In addition to that, we identified an extraordinary phenomenon. During pandemic, it was the increased number of pets adoption, showing the benefits of pet adoption and human beings, reinforcing that this market is growing virtually in the forthcoming years. So this way, we wrapped up 2020 at a growth of 18% of our net revenue amounting to BRL 700,000. It's important to highlight that good development in our area shows the potential in the markets we work in and also our capability to access them in an efficient and adaptable way. You will notice that throughout this event, each business unit -- production animal, pet animal, international operations -- they have operation strategies outlined and they have in common the customer journey, demand generation and access to adjacent markets. In addition to the strong growth of sales, we reached in 2020 unprecedented results. Our adjusted EBITDA grew by 33%, almost the double of the sales growth. It reflects the gain of gross margin and adjustments by the diligence and the cost management and the project-focused on productivity and production in the company. We made all the actions necessary to preserve the cash flow, but we didn't forget about the investment agenda to make the company grow. The revenue growth, combined with higher profitability and efficient cash flow generation management, made us to have a robust cash flow and closed the year with a relevant result. So the EBITDA dropped twice to once in 2020. We prolonged the profile of the debt, it's [ 3.4 ] of the first quarter. We accelerated the strategic funding. We hired in the third quarter a new financing program, FNAC, amounting to BRL 180 million, and we still have BRL 126 million to be released in the next 2 years. So this credit line possess costs and deadlines really suitable to the process and development cycle of our products. We will keep on in 2020(sic) [ 2021 ]accelerating all the initiatives outlined in our strategic planning aimed at making our company grow. We are supported by a robust cash flow, a low leverage and growth. Our growth will come from internal initiatives, portfolio, launching new products, evolution of the customer journey and also transaction and strategic alliances, allowing Ouro to access adjacent markets and a great synergy with the current operation. I'd like to wrap up thanking everyone who believed in our work and without the uncertainty of 2020. We wrapped up the year at a 22% increase for our shareholders. The organization is committed to generate value in 2021. I'd like to count on your trust and your support. Thank you very much. Ju.

Thank you, Marcelo, for your participation. [Operator Instructions] So Brazil has the largest livestock group in with over 100 million heads, according to the Ministry of Agro Business. Our country is the largest world exporters of livestock and poultry, and ranking fourth in exporting pork meat. We have one of the largest and complete portfolio for livestock, poultry, equines, pork meat. And who leads production animal in Brazil is Fabricio Oliveira. Fabricio has been working at Ourofino in the animal production for 15 years. He has been sales rep, Technical Consultant, Regional Manager, Executive Manager; and last June, he took over the Board of Business Unit. Good morning. Fabricio, welcome to Ourofino Day.

Good morning, Ju. And good morning you all for listening to all -- to us. It's a privilege to be here and be able to talk to you from the production animal unit representing our sales team. Marcelo brought what the market was. Let's talk about the specificity of 2020. There was much emotion, uncertainties and the year of 2020 made us rethink mainly about our path and made us imagine reimagine the way to access the market. As a support, we had a positive market when we look at agri business, and it shows a trend of new sale growth for the next few years. And this help us to put into motion our strategies to see at the producers and develop the work we proposed to do. When we look at specific market, for example, milking market, we see a trend of the production growth due to the increase of the productivity of the herd sanitation and technology in the farm. When we look at the meat market, we notice a trend of growth in price, which favors that the producer invest more in the business and they want increasingly to have more [ versatility ] when putting these -- raising these animal in their property. The market where we are in is a BRL 5.1 billion. We participate at 2.2. We have a market share of 9.4%. And we used this transformation moment, this moment of change and all the adversity that we had to face up to throughout 2020. And when I came here, we had the mission to strengthen our business unit. We had to make our business even more dynamic, lighter so that we could get to our goal in a more accurate way inside our structure, counting on our sales team and demand generation team. This generation of demand is responsible to get to the producers, taking information to them, all the knowledge that is required to increase the productivity. These few team has as its mission to be focused on our customer. It's customer-oriented. We are obsessed by getting closer and closer to our customers. In this year of 22 (sic) [ 2020 ] year with the advent of pandemic, we had to reinvent ourselves. So it inspired us to act in a different way. It was a year that we intensified the training to skill our team. Throughout 2020 over 400 training hours for our technical and commercial team, our salespeople, CTs and our sales rep. And we took training to over 1,000 partners, either producers, livestock vets, store workers, cooperative workers and point of sale. And we impacted over 5,000 people by our webinars, 5,000 participants throughout a national territory. You reimagine the way to access our customers and to be together with our team at the end. So several initiatives that allowed us to get there in a robust way to our end customer. All these investments logically, as Marcelo said just now, brought us superior results, not only the financial result, but mainly our qualitative result. We managed to increase our participation by 14%. Our mix increased by 5.6%, and our demand generation team, together with the producers, was responsible by 26% increase of our demand in the field. So it's been a favorable positive year that provided us a superior result. And 2021, what to expect for this year? And how we've been structuring the year of 2021? 2021, we understand that this is the plasticity year. It's adaptability year to adapt to new shapes, to get even further with our team. In order to do that, we must be well structured. And in 2021, we intensified our pricing program, together with an expert consulting company, to direct our commercial policies and our strategies. To get to our channel, we sophisticate our market segmentation, enabling us to get in a special way to our over 13,000 customers. I'm talking about pharms to address them in a customized, specialized way for each of these partners in addition of our channels, resale, cooperative and wholesale partners. All of this will make us stronger, will give us the opportunity to improve even more our market access. As Kleber said, we have a different way in the markets to access this market, and this brought us here. And now using our database analytics, we are going to intensify our arrival at the end of the flow. And our field team is going to help us generating demand, open doors, so that we can get to a higher number of items and portfolio inside the property. Mind you, here, inside the production and animal sector, we have over 100 items, 100 opportunities to take development to the pharms, and it's there where we want our products to be. We participate in the -- from a market that is BRL 5.2 billion, we participate in BRL 2.2 billion. So we have our directory for strategy and the development of new businesses. We have novelties for 2021. We have 2 products, Hidrat Up and Hidrat Fresh, they are moisturizer that opens doors to nutritional additives, focusing on the animal welfare. We reinforce our reproduction line with Supravac. We have the largest line of reproduction in our country. Supravac is here to add to this group of product to get to the end of the pipeline and assure these are our strengths, a few of them. We are over 200 people in the production of animals unit. It's a huge market, focused on the relation with our customers and taking care of our customers. We have a portfolio with over 100 items that can -- that allows us to get in different ways in each region of this big country. We access over 5,000 customers directly. Things about resale, sales point, among others, that we can access with our wholesale partners. I'm really proud, and I can say our social media can reach over 300,000 followers. Together with Terra Viva, we can be present in over 50,000 households. Its different ways of getting to the producers, to the field pharms, taking information and training to them. This is Ourofino. This is our Production Animals units, together with our database, and all our expertise in the field and our portfolio. We are going to use the digital even more to reach further and further in Brazil. Thank you very much, everyone. Have a good day.

We'll get there. Thank you, Fabricio, for your participation in Ourofino Day. So just reinforcing, you can participate with your question. You can enter your question on the platform on Zoom about the Q&A, okay? And Brazil is the second largest pet market, lagging behind the U.S. only. According to a research done by Animal Health Agency, Brazil can get to 101 million pets by 2030. In the last survey in 2018 [indiscernible]. So they correspond to BRL 54 million; and cats, BRL 24 million. Ourofino operates in the segment of pets since 2000, so we strongly believe how good it is to take care of these relations between tutors and pet. Veronica Martins has been in Ourofino São Jerônimo since 2004. She's a director of this business unit in Brazil, Mexico and Colombia. Today she is here to tell us about the performance of the pet animal performance in 2020, and of course, the next steps. Good morning, Veronica.

Good morning. Jul. Good morning, everyone. It's a great pleasure to be here in this event, presenting our results. And talking about pet animals. It's impossible to talk about 2020 without mentioning, again, the COVID-19 pandemic. It was a year with a social distancing. Home office and the pets, for sure, they had a major role for us. They were our best partners. And what we noticed in 2020 was an increase of household animals. Also the increase of adoption and purchase of pets, puppies, cats and dogs, the pandemic put us closer to pets with their tutors. And as I said before, they've been our companion. They helped us without the social distancing, isolation, so this enabled a growth of an average expenses on animals that helped the rebound of the market, mainly in the month of June. And this collaborates with a resilient aspect in the pet animal market and the emotional part appeal it has. An important point in 2020 was the increase of digital sales. This we observed in the whole market from the small retail that traditional pet store and the big chains that were more structured for that. It was something really important to ensure the service to our customer, the maintenance of the revenue, and this happened as supply and demand for customized services. Customers, they needed the services and the stores, they structured themselves in order to provide this service and have their revenue. Even before this pandemic scenario, Brazil is consolidated, ranking second as the largest pet market in the world with 6.4% of share, behind the U.S. with 50% of the share, showing the biggest opportunities and the high-growth potential that Brazil has to grow in the pet animal market in the world. Ourofino's role was fundamental. The pet market prevails, and it's segmented and fragmented market with over 30,000 point of sales, POSs. And due to the fact it is prevalent, we have many small stores, not all of them, they have access to information. What we did in the beginning of the pandemic, we provided support to stores, chains, distributors regarding the pandemic moment, topics like taxation management, cash flow management, OpEx related to entrepreneurship, social media, how to work in an online environment. We brought topics related to mental health for our distributors. It was the moment that we could exercise and experience our values and our purposes. As Kleber said, we were really concerned about the safety and health of our customers in place. In the beginning of the pandemic, we established a remote service. When the pandemic had allowed us, we started to do a face-to-face work, thinking about the safety of everyone all the time. And we launched -- or our page were defined. It's on our website, the kickoff of the customer journey. So these are tools, aiming at fostering and directing the sale of Ourofino products to virtual partners and the brick-and-mortar stores. More than ever, the DNA of Ourofino is to be a partner, and we experience that. We live that. We carried out several initiatives of enchantment, incentive and loyalty throughout the channels. Actions in Brazil, Mexico, Colombia, our team was essential to make this happen and reach these results. Although we had difficulties throughout the year, we implemented the customer segmentation process. It was mapped in our strategic planning for 2019. It's important to highlight here, the importance of the veteran area. They are the main influencer in the sales of vet meds, and our segmentation work started with these targeted audience. We identified the degree of influence and the power of prescription of these vets, and we rank them in the score from the lowest to the highest, understanding how our resources could be better applied. The second phase of the segmentation process was to map the behavior profile of these vets. We did another survey, identifying the needs, willingness, desires for services and products from them. And we identified 16 possible profiles. Right after it, we carried out our work guide, very practical to be worked with each of this profile that was mapped. Our demand generation team and sale generation team, they are in the field, talking to these vets. They can know the best way to lead with each of these mapped profile and to ensure the implementation of the segmentation process. We count on the largest and best demand generation team. They are vets hired to carry out a visit program to the main vets throughout the country in monthly cycles on products and specific topic. In 2020, we carried out over 50,000 visits for these selected vets, reinforcing that the vets, they are the main link of influence and the prescription of our products to tutors, the owners of the cats and dogs. Mind you, the access of vets is different from Production Animals. And for the fact that the market is extremely fragmented, we count on distributors. In Brazil, we have 41 distributors that works in exclusive areas, selling to over 27,000 POSs. In Colombia, it's more recent. For 2 years only, we have 21 distributors that sell to over almost 5,000 POSs. In both countries, Colombia and Mexico, we've been expanding access and portfolio. Brazilian market of medicine for pets, it's BRL 1.3 billion market. Ourofino today has a portfolio participating in almost BRL 400 million in this market. Our market share is extremely substantial. We have 22% of participation showing our strength in the markets in which we operate. Also in 2020, we carried out 2 launches, big ones. The first one was the Bris line. Bridge lines, it shows our entry in dermocosmetic market. It's a market that we didn't use to act on. It was identified in our strategic planning 2019. It's a high-tech line added value of shampoos and race with nanotechnology, omega, free of allergenic, treats and protects the skin of animals that has a specific need. And we launched Maxicam ROUs. Maxicam is one of the strongest and renowned in the pet market, and we brought this solution with a dosage syringe, making it easier to administer for cats. The cats are really harder to take pills. And thinking about these species that is growing, we brought this solution in 2020. Kleber talked a little bit about the digital initiatives. For both pet animals and big animals, these initiatives, they were done through our robust process of design thinking with several people from our channel to understand the pain of these people, and we are bringing this solution very soon. All these solutions, they have assumption, customer-centric, thinking about the improvement of the experience of the user with the company, resulting in loyalty and return on investment, ROI. I bring you 3 big trends in the market. The first is pet humanization. In this market, the expertise is increasing, and this makes a specific demand for new products, diagnosis and treatments. Second, when the increase of cat population due to the social change of families, the verticalization of the [ CV ]. And the third, the life expectancy of animals that emerge new diseases to come up and new needs to emerge. And these drivers, they are extremely important. They guide us to understand possible product solutions for the market, and they are raising our access. And to wrap up, I bring the main strengths of our pet unit. The first one is the access, the strength of our distributors and the strong presence that we have with them with high capillarity, a robust sales team. Over 400 people in Brazil influence with the vets, using our demand generation program and with the customer segmentation process, our high capacity of multiply knowledge. In 2020, it was over 4,000 trainings carried out for over 20,000 people. And the brand, Ourofino, it's a truth, reliable brand. It's strong together with the vets. And our market, the brand is extremely important because the brand is prescribed. And this is associated with the other things mentioned, they prepare us. They make us able for all the challenges and all the growth opportunities that we have in Brazil, Mexico, Colombia for the next years. Thank you, Jul.

Thank you, Veronica. Let's continue Ourofino Day. Ourofino, animal health, we have subsidiaries in Mexico and Colombia, 2 important livestock poles in Latin America. We act within the sales team, local ones that are taking Ourofino's brand inside the gates of the firms in these countries. We also export to other 13 countries in Latin America, Africa and Europe. And before this business unit, we have [indiscernible]. He has experience of 26 years in this market, working in multinational companies since 2020. He's been our International Operation Director, and now he's our guest to explain the operation of the unit and its future. Hello, [indiscernible]. Welcome.

Hello, Juliana. Good morning. Good morning, ladies and gentlemen. With a much passion, I want to talk to you in these minutes about international operations at Ourofino. It's a very solid company that I joined last year, and I'm very proud of that, and I see the international expansion of business. That's one of the growth pillars of our company. Unfortunately, pandemic, as Kleber said, [indiscernible], that affects Brazil, and it has affected our economical and political segments. When we look at the GDP evolution that closed at 4 points negative comparing to Colombia, that closes at minus 7, Mexico, minus 9. And there are other countries with GDPs even lower, and this impacted our business in those regions. But we reached in the third quarter, we recovered it and we had a solid year. What we did? We adapted. We worked with our teams. We aligned to access markets and to be closer to our customer. This was the leverage that made the difference in our work throughout 2020. So strong teams with expert teams, not only in the trading channel, but also the vet teams talking to our customers, generating information, generating opportunities to experiment what Kleber has just said about the values of -- Ourofino values and culture, mainly for the operation in Mexico and Colombia, a sense of belonging. We are a single company. This strengthened our company and strengthened the commitment and engagement of our teams. And the diversity that we have created opportunities that by remote access and technology use, access the market and be closer to the producer, livestock farmers, our influencers, our partners and vets. Let's talk a little bit about what we did in these remote actions. It was really important to using that critical moment to be close to our sales team. With our teams, our partner teams, we held over 100 meetings. Technology is important to maintain this contact, keep in touch with our teams, to show that we are human, that we are close to them. This was and is very important, our customer, the producers, the end users, the vets. We held over 50 webinars, workshops to take information from our products reaching over 1,500 participants in these meetings. With that, in these actions I mentioned, resulted in the growth of international operations in Ourofino, that Marcelo has just presented. Let's see where we are. So in Mexico, after Brazil is the second largest animal market, it's a growing market, closed 2019 at around BRL 570 million livestock, swine, pets and so on. In our markets where we work in Production Animals, specifically livestock in Mexico, we have a market share of a little bit more of 1%. We can say we have a blue ocean of opportunities to develop, to get our portfolio to the Mexican market. Why Mexico? Why Ourofino decided to be in Mexico? Mexico is the ninth world largest animal producer, and Mexico is the sixth producer of livestock meat and poultry. It's the seventh largest producer of pork meat and milk. So it's very strong in animal protein, and it has a very interesting characteristic that leads to our strategy. So the milk production, meat production is concentrated in high-tech companies, enabling Mexico to be an exporter to the market of the U.S. Putting together these characteristics, Mexico is a favorable market to be present and develop Ourofino businesses. The second operation we have is Colombia. Colombia market, it's really large, one of the biggest in Latin America regarding animal health. It's almost $240 million for all the species. When we look at our participation, in livestock market, we have 2% of the market share. If we divide this market share representing a little more of 50%, we can have better results. But again, to be -- why to be in Colombia? Colombia ranks fourth in livestock in Latin America. It's a substantial participation in the GDP of that country. If you look at livestock GDP, it's almost 4%. It's the 17th world meat production, and it has a very important projection for the future. Colombia, it exports very little. It only looks at domestic market, but it's been -- it has to work on the health plan to start exporting. And it's very similar to the south of Brazil and some regions of Minas Gerais that 80% of the rural property, they have less than 50 animals. So it's -- the capillarity is really large. The strategy is different from Mexico. Another branch that we have. We have operations oriented to distribution in South America and Central America. Where is our focus? We want to be the most admired companies in animal health in this region. So we are really satisfied with developing our businesses in LatAm, and we have local partners that we calculate to have a participation in this market, a little bit superior to 3%. And we have big opportunities to develop these markets with our local partners and developing new partners in new countries, and this is included in the strategic planning. This allowed us in 2 branches to take strong and leader brands from Ourofino in Brazil to keep on expanding it. With the brand from our therapeutic lines, strong lines that we have and start and action in Colombia with a local participation, bringing a portfolio that completes ours to offer better solutions for animals to our customers. Market access has been really consistent in 2020. Even having these advents, the third and fourth quarters, we could see a rebound in this access. When we look at Mexico, where we are present with our local partners, we have over 6,500 POSs. We grew strongly our customer bases in the states, and we increased it by 172% our visits. So access and decrease the distance from our customers in Colombia that we had been following a model in 2019, 2020 to increase our participation, to be with our partners and our team, reaching over 4,000 POSs, drug stores, ag stores. And we grew our customer bases and the users and vets at over 43%, and we have a good number of visits to increase it. 2019 was more focused on trade, and now our presence is more substantial, closer to vets. So in distributor -- distribution, we have 15 local partners. We reached 3,500 POSs, and we have to keep on working on this development. This allows us to work with 2 pillars of Ourofino in its planning, expansion, international expansion, expansion of the portfolio we have close to 35 to 40 products between Mexico, Colombia and other countries and information for Fabricio brought. We have 100 products in Brazil. This expansion, Mexico, Colombia and other countries, we have this geo expansion that we have been working at forehands with legal area, regulatory area to take our products to these countries and to go to the market, to increase the access to zones that we are not in, that we don't cover. These are the pillars of our work. When we look at the future, we are very connected with the value [indiscernible] brought. The first one [indiscernible] aims at the growth of the market and expansion of the product portfolio. It's inside our tactic plan for the forthcoming years, care for people, develop of our sales workforce, improving their performance. And the third value, connected with the world. It's all the initiatives, digital initiatives, and we have our fingerprint. We are starting with some more digital strategies, bringing the experience of the customer in 2021. And the second branch connected with the world, strategic alliances, local partners we have, alliances with new partners, new businesses that we have been developing, and the accounts that we haven't reached. These are the 3 values, really well connected with what we have been doing, and we will keep doing to keep the pillars grow. Juliana, thank you.

So let's proceed with Ourofino Day, reinforcing that we have a Q&A box. We are getting to the end of our presentations. So let's take a 5-minute break so that you can drink some water, go to the restaurant, make a call and then we come back with the Q&A session, okay? Mind you that we have an environment that was created exclusively to talk about our organizational culture. You are going to have a QR code. You were more than invited to access this QR code to get into our website, and you can download our cultural ebook. Come and experience our values together with Ourofino team. And we, from health animal, Ourofino, as we said before, we are connected with the world, pursuing opportunities for our customers and partners, opportunities in solutions and services. We have a robust team that works internally with R&D. And in 2020, it was created the day for strategic development, still working in synergy with R&D. Today, this area is led by Angelo Melo, who started in the company in 2019. Angleo has been executive for 30 years in the animal health market, and he has large experience because he worked in several multinationals. Angelo is here to explain the R&D area. Welcome to Ourofino Day.

Good morning, everyone. Thank you for the opportunity that we are having here to present a little bit the work that we have been doing at a new business board or, as we call it, R&D. Our R&D work is related to the strategic planning. The heart of R&D project is tied to strategic planning. If we were to sum up the strategic planning of Ourofino in 3 words, these 3 words would be financial health, growth and people. Kleber talked about people very much, Marcelo talked about our financial health that you cite in details in our last report, and we will be talking about the growth opportunity that we have with Ourofino and how we have been addressing them. When we talk about growth, this growth comes from the current portfolio. The products that we have in line. And this part was covered by my 3 friends from business units, and we are going to talk a little bit about the growth that we have in future portfolio. This future portfolio comes from 2 big branches. One is the internal branch. It's R&D led by Ferdinando, my friend, and by the inorganic growth, the transactions and new businesses that is in charge of them. There is a strong synergy between the 2 boards. We work strongly and connected as any global big pharmaceutical companies. And this work together. The first question is, what are the segments that I'm going in with my new portfolio, either coming from TDI or from abroad? So this is very classic in the strategic design. We are going to strengthen the position that we have in segments where we already work in. We are going to get more products to the areas we are already in. We got in new segments as well inside the animal health market. And in our plan, it includes the entry in adjacent segments. Adjacent segments is a fantastic strategic discussion. Why do we consider to get in adjacent markets? So it's obvious. These segments, they are very close to us. So as a company, we have the opportunity of serving our customers with these segment. The second reason that is very interesting is when we expand our portfolio to adjacent products, we increase the perception of value that we have in the mind of the vet, the farmers, the end user and also [indiscernible] channels. But we think that at this moment, we are focused on end customer. So we are end customer-centric in the decision-making. Why do they see us as different? Because they see us as a provider of big solutions, a broad company. That's why this effort of getting into adjacent segments. We increased the size of the market we participate in, and we are seen as a higher value for the end customer. This is the reason to be together in adjacent segments and how do we choose the segments we are going to get in, either a segment that we don't work in or in adjacent market. Three things are extremely important. First, the trends of Ourofino. I can send -- can I play in these new markets? The second, the macro trend of the market and does it make it up if I join it? Is this market growing? And the other thing is to know the chain, the decision-making of the customer, the journey of decision-making. Am I in this purchase journey? Do I know it? So these answers are important for us when we decide to get into a new segment or not. Our focus here is to talk about transaction and partnership, which is our external growth branch. When we think about partnerships and transactions, we are talking about and talking to another company to launch or distribute our product or to engage in a partnership or acquisition. The first question is, as Ourofino, what do I take to the negotiation table? What are the trends? Is there anyone interested in talking to me, someone who is willing to do business with me? The first thing is to answer is our strengths. What do I add to this distribution partner? The first thing is the access that we have. It's a workforce, in the sales, fashion selling practice and a strong team to generate demand. I'm not going to further details because my friends, they covered it thoroughly. There is an important point here. What does it mean? These differentiated access. What are you doing there? If I have a strength that is very big and I cannot use it, it doesn't make sense to me. The biggest differentiation point is capillarity. To be side-by-side, whoever makes the decision, even for a production animal or a pet animal, this is an important point. Ourofino, as FabrÃcio said, we reached over 20,000 POSs. So 95% of the POSs in Brazil, they have Ourofino products. So we are the owner of the relationship. We don't go there using distributor. The same thing happens to pets. We go to 5,000 vets. We don't need intermediary ones. I know the decision-making. I know who they are. I know how they behave. I know what works in that store. That's the difference. We reach more people. And we know what to do with this information. How this information is on a top-level CRM with detail, and we can make segmentations as Veronica showed. We can identify many things because this information there comes from our demand generation. We are together with to the final, the end user, the farmer, the vet. And we can identify directly, with our team, what the vet values, what the farmer values, what are their pains to solve the problems that they face in their production or at a pet shop. This makes us different because we can cover the current needs and even more, identify the necessities which are not met and work to develop products internally, different ones, meeting their expectations or the need that they have, but they don't have a service, and we can develop new products or go after alliances in the market. And why Ourofino is attractive? Because we have experience in doing that. We know how to build together. We are used to building things together. And one good example that we have is the work that FabrÃcio's team did with inoculants of silage together with Christian Hansen products, a Denmark company. They have a differentiated line, but they didn't have access or expertise to launch this product and to build the market. This is a good example that we took to the table. All these guys from Cravinhos, Ribeirão Preto City, they respect partners. They have this culture. So this puts us in a good position when negotiating. We discussed how we negotiated why a company would establish a partnership with us. How do we identify opportunities? Do we wait there on Anhanguera Road to give us an offering? No, we go after them actively. Something more simple are the segments where I work, the segment I work. As we heard from FabrÃcio, we have a strong position in animal production. We are protagonists with our broad lines of hormones for reproduction, the broadest one in the country. And logically, we can extend our value perception in the market with the reproductive vaccines. And then we went after a partnership with Dechra from England, and we launched our reproductive vaccine this year. The story gets a little complicated, when I start thinking about market segments of animal health, where I don't work in. And it gets even more complicated when I think about adjacent room spaces close to animal health. We have 3 examples on how to identify opportunities for additives, diagnostics and general typing for reproduction animals. Great. Go here. Our source of analysis is the knowledge of the customer journey, so I mean the decision makers. I'm not talking about access channel, how the farmers buy this product. When analyzing all of that with our database and the knowledge of our team, we understand the great trends inside of the market. This is an example we have for production animal. What's the name there? It's productivity to produce more with less. The competition of grain, soybeans in their form, so exchanging cure for prevention, it's the perception of the end consumer on polystyrene, in Tokyo, the farmer producing to feed the world. It's animal welfare, antibiotics reduction. So we have vaccines, genetics and nutritional additives that FabrÃcio showed. We have alliance with Safeeds and Neogen. We will start to trade genetic establishers from Neogen. Veronica showed the humanization process of that. So it's closer and closer to human medicine. In human medicine, we have intensive use of diagnosis. That's why we have an alliance with Asan Pharm from Korea. And we are going to get to diagnosis market for pets. In summary, we have a clear process, defined the road we executed, and we identified the opportunities of our markets. We mapped -- we have a mapping process for the companies that could be potential partners. We are prepared for negotiations at the table. In these 8 months of then, we have 4 distribution agreements. Our business is to look ahead. We are convicted that inorganic growth works well when combined with organic one. Our business is to look ahead and go after opportunities. Beyond the internal portfolio, as Marcelo showed, the cash flow is healthy. So we can gear a little bit more be daunting because we trust in our opportunity selection mechanism because we've always been centered on the customer journey. It's my simple answer, how to execute this business. We do that with different people, people connected with the world, with our values, as Kleber showed us. And the value that we need here for our strategic alliance is to think global, continuous learning and maybe to get into digital. This is it. Thank you. Thank you, everyone.

Thank you, Angelo. Success with the bank board, okay? All right. We finished our presentation shortly, we are going to have a round of Q&As here on Ourofino Day. Kleber is back to our stage, briefly, so that we can close this first part. Kleber, our Board presented and now what will be the behavior of Ourofino in 2021 and in the forthcoming years?

Thank you, Ju. Thank you, everyone. It was really clear how the company is behaving. So 2020, what was important for us, we had reorganization process; rebuilding of values; restatement of our purposes, goals, pandemic; financial solidity implementation of strategic planning. We are very strong for 2021 for several years, actually. We have a company that is highly adaptable. We could show that in 2020. It's a company guided for our purpose and value, people in love with what they do and a management that is working thoroughly. We brought the level of sophistication in our process. You saw the segmentation that Veronica showed us with the 16 profiles to be really customized to go to the grain. We have a good expectation of the market. We know that the food chain by 2050, it will be really big. And Brazil is the barn of the world. We are the second largest market in the world. We have a big difference from the first. Yet we are very strong with our international initiatives. We strengthened the process of portfolio, organic or inorganic. It's -- it has liquidity, leverage and composed several strategic planning for the next few years. Just to reinforce it, the 3 main accelerators are catalyzers of our initiatives. It is our culture, our unique access to the market. We talked about it throughout the presentations. It's differentiated. Nobody does what Ourofino does. And financial robustness and that we have access to new sources -- resources when necessary. And just to reinforce that, more important of what we do is why we do and then how we do it. We must know about this. This is what we try to bring to you in this event today to assure you that we do things differently in a special way and that we are obsessed by our customers, and we go pursue engagement all the time. And we have a very engaged team to do that. Thank you. Thank you very much. I hope that you have enjoyed it. Of course, our relation with investor team, we are always at your disposal to clarify question. Now we are going to take a break, a short break, and then we come back to Q&A. If you haven't sent your question, let's do so, so that we can direct them. Okay. And we don't want many people to be on the stage. We want to do it individually. So let's have a break. Thank you for your trust. We are together in these processes strongly.

Thank you, Kleber. [Operator Instructions] And within 5 minutes, we are back with our Q&A session. [Break]

We are back to Ourofino Day. And now it's open, our Q&A session. I'd like to thank you for having sent your question to us. The first question we have, at this edge of the stage, to keep social distancing, [ Rui Nobrega ], please. [ Rui ] is coming to our stage. Thank you, [ Rui ]. So your question was done by Guilherme from Empiricus. With the portfolio of 40 products in the international market, potential to negotiate 60 more products, completing the portfolio of Ourofino. This question is the following, about the regulatory parts in the countries that you want to expand. And then, what can you talk about the chronogram for licensing this medicine? What's the process like? All the products are being licensed and how long to see the products being negotiated in these countries?

Good morning, Guilherme. Thank you for your question. I'll answer it partially, the regulatory part. Angelo is going to bring more information about it. So your question is really good. I'd like to bring what FabrÃcio brought 34 years ago, Ourofino initiated with the one process -- product. And now we have 100 products. So 100 products that we work with. We have products, we have participation with the existing portfolio, and we have been working strongly with the regulatory environments that are really demanding in Mexico, Colombia and other countries and our regulatory areas. They will be working very strongly on this chronogram to bring our brands, which are in Brazil and take them there. In a line that FabrÃcio mentioned just now, in the case of Colombia, a reproductive vaccine, we have a partnership here, and we are advancing on this partnership for 2021 in Colombia. And we've been working on other partnerships in segments that we don't have portfolio yet, but we want to be strong at it to take this to anymore reproduction in Mexico, for example. To add to this answer, our friend, what other information can you bring?

Thank you, Guilherme, for the question. Adding to that, we have a calendar, detailed calendar, country by country, product by product, when each of them is going to come in. We prioritize them as an unfolding of strategical planning. We created a calendar of submission per country per product, considering their priorities that we chose as priority. Revenue and the margin of -- for the country was -- were important for the decision-making. We have this scheduled as planning, and we are covering it smoothly. Another unfolding of the question is the need, if our dossier regulatory ones meet the expectations of these countries. Generally speaking, a product that covers the Brazil regulatory rules, they are enough for other countries. Sometimes in Chile, it's a little harder, but we considered it and other markets that we act on, we cover the needs for these countries. It's under control.

Thank you, Angelo. And now to the stage, Marcelo Silva, is going to answer the next question. Marcelo, please. Marcelo, so the question is from Guilherme from Empiricus. He questions about the current capability that is installed in the company. The new products, new segments, do you intend to do it inside the plant or outsource it? And the third, the current structure allows you to expand the segment?

Thank you, Guilherme, for the question. Undoubtedly, we have the best site of solution production for animal health in Latin America. Inside our site, our plants enable us to produce powder, oral, cream, injectable vaccines. This flexibility of having different formulation allows us to have new segments without making expansion investment. We are really good at our current capability and we don't describe the -- to do a partnership or to outsource the production if this is feasible. But capability doesn't concern us. Our plant is flexible. And in addition to our products, we also produce to third parties, other multinationals, and we don't foresee any investment on CapEx on that.

Another question, [ Victor, Jr. ] from [ Small Caps ]. And he congratulates us on the presentation. And after 2020, what about the sales in this beginning of 2021?

Thank you for the question, [ Victor ]. We don't give a guidance of our forecast, but I can assure you that 2021 starts as well as 2020. As Kleber said, the market is warmed up. The drivers are good. And we have warmed up demand. So the year of 2021 is going to grow a lot to generate value as it was in 2020 or even more.

Another question for you from [ Victor ] and from [ Glauber ] from [ PB Investments ]. How do you see the vaccination launches and the perspective of use of the new plant in 2021? They want to know about the idle capacity of biological plant concluded in 2018 and the evolution of it.

Thank you for the question. I'll try to answer it in parts. It's important to memorize in this meeting, and I hope that you understand this process, the following way we've been accelerating all the development of products. The main initiative of strategic planning is to accelerate the initiatives for internal development of the product portfolio and the transactions and alliances. And the areas are reformulated for that. Ferdinando has a team with the experts in several areas. And their mission is to accelerate this vaccination program. It's not a -- the result is not really relevant in the short term, but we are going to have better results. It will happen in the next few years. On the other hand, we have installed the capacity. Our plant is ready. We just need some investment, depending on the type of products. Ourofino is going to have a growth in major improvement as we increase the occupancy of biological plant.

Marcelo? Now please, Veronica. Thank you.

Thank you, Ju. Thank you, everyone.

Okay. We are waiting for Veronica. Veronica is already here. A question for you Veronica from [ Victor ] from [ Small Caps Porro ]. He is talking about pets. He wants to know if Ourofino wants to strengthen up the direct to sales and marketplace to get to know better the customer habits and if there is a planning to produce products for third parties.

Thank you for your question, [ Victor ]. It's excellent today. We already do it. As I said before in my presentation, we already have practices that foster the sale of our products to our commercial partners that carry out e-commerce sales and now with the customer journey, we are going to foster even more the sales through digital channel. It's important to highlight that sales by e-commerce in pet animals, it has a low participation when we compare it with the rest of retail. And when we compare it with the sales carried out in the U.S., it's a much more mature market. So this comparison is always good. We understand that there is growing capacity and we have already done it, and we are going to keep at it in our repricing and trading strategies, all right? And third parties say Ourofino outsources that for several other companies in the sectors. We are open to new proposal and study new possibilities.

Veronica, thank you. Now I'll invite to the stage, Marcelo Silva, for a round of questions that came to him. Marcelo, please. Marcelo, the first question to you. Do you intend to trade the services and the products with third parties, which is the brand Ourofino, or only representative?

So I'll try to bring 2 points here today. We produce our plant, as Veronica said, products, competition products by demand. We outsource the production of other companies. We have the opportunity to represent other brands. The partner with Dechra, it's done by a partner. It's produced by Dechra and distributed by Ourofino. We don't have the intention to trade only our product. We understand that the alliances are important to take up more of these adjacent markets.

What's the sequence of bigness regarding our revenues?

Regarding the announced partnerships, their partnerships announced that they were concluded by the end of 2020, 2021. We don't have a relevant impact. The most impact will be felt in 2021. So in the next quarter, I hope to announce good results and mention what they contributed to it.

And the next question is about the evolution of Ourofino in biological market in 2020. Our participant wants to know about more details about [ Optoseis ] and [ Zika ] virus.

Good questions as well. Thank you. As I said before, we don't have our vaccine portfolio complete yet. Our plant, our installed capacity for vaccine production, is really relevant. We have the biological plant, the most modern in Latin America. I think that some of you have already visited our utilities. And you know what I'm talking about, about [ Optoseis ] cycle, whereas we had a normal volume of operations, but it's still a low volume. Biological is a future project, transformation project. This is the message we have here that the company has technology installed base, a dedicated team to make the biological process something relevant for Ourofino in the next few years.

Thank you very much for your participation. Now we invite to the stage, Angelo. Two question, Guilherme from Empiricus. Angelo, welcome, welcome again. When we talk about partnership, the idea is to do a profit-sharing. Can you talk about the financial structure of these operations in addition to partnership with international companies? The idea is to bring you the products to local companies or to do the way back, taking Ourofino to the partner company operation sites?

Okay. Let's start from the most simple, the end part. We don't have any problems to send our products to someone to sell them in other products as long as this country is not included in the expansion plan. For example, Mexico, no, because we are working there. Some other Latin American countries, they are under [ Rui ] radar but Southeast of Asia, for example. It's possible to do some business there. And the question is if the country is not under my radar, I can take my product there. My record dossier meets the expectations of those countries. Sometimes, the bar is really high. The investment is really high. Sometimes, it doesn't compensate it. And talking about the negotiation model, partnerships, we are totally flexible. We are an open company to the world. As we said before, so it goes through the business model we thought about. As long as it is in accordance with compliance, we evaluate it. If we are going to proceed with it is another thing. Think about the development cycle, discovery, prototyping, advanced development registration. So Ourofino domains the cycle. So apart from molecule discovery, but the rest of the cycle, we muster it. And then we can go after products in any part of the cycle. And then we are going to use our strengths to make this product boom in the market. What are our strengths? We have capital to invest, regulatory knowledge, capability of development with Ferdinando team, capability for registration. We know the rules, regulatory rules in the country, and marketing team to position segmentation and the sales force that we signed, the 3 units. We are going after anywhere, everywhere, the motto, financial model, we discussed it. It can start with a distribution, as we saw here, purchase licensing logically with a multidisciplinary team, and the final word goes to Marcelo as well with the financial rules that we established for our projects, okay?

Angelo, thank you very much for your participation. And now I'd like to invite to stage Kleber Gomes, our CEO. Please?

Is there any question? To me? Okay, I'd like to answer that question. Yes, sure.

The first question is from [ Victor ] from [ Small Caps ]. Regarding the capital structure, the company is considered to be prepared for M&A strategy and to these and which sectors are studied for new acquisition?

Thank you for your question, [ Victor ]. So the answer is yes, we -- our capital structure is good enough for M&A. In the part that we evaluated, as Marcelo showed in the financial scale, low leverage, high liquidity, indebtedness prolonged to the future and also market access possibilities and to restructure acquisition, exchanging shares and these things. We are prepared. We built all of this throughout 2020, and we have transaction pillars for partnerships. Of course, Angelo has just said, we have several possibilities to establish a partnership, not always acquisition is necessary. It's under our radar. We look at all possibilities for acceleration. My term is to accelerate the company. We are well aligned with the Board, Advisory Board and we are aligned with our strategic planning -- the planning. The answer is yes, we are extremely well prepared. The markets will not move away from what was presented here, what Angelo presented here. And I'd like to add to that, for example, some products are Ourofino brand and the third-party brand, but it's exclusive for Ourofino's trading. So we want to have a good partnership, and there are several models to be adopted.

So Kleber in the beginning, we promised a 2-hour event, so let's ask -- 2 hours flew, almost 2 hours. Kleber, this question is from [ Alex Lima ]. He's investor, a physical person related to agri business. He watches us on TV for years. And today, he decided to buy stocks from Ourofino Health Animal. He wants to know if Ourofino is the right company to think about 20, 30 years investment.

Yes, it's -- okay, it's an opportunity to talk about our social media investors are coming from there. It's good that probably he knows the plea Ourofino and our way of acting. This question is excellent. It gives me an opportunity to sum up everything that we saw here today. First, highlighting not in an arrogant way, I'd like to show it in a humble way. This company started from scratch with 1 product, 2 founders, so you see the -- a little money in the house. And now we have this position, ranking third in the biggest market in Latin America, which is Brazil. We are going -- we are striving to be the most admired company in this field in Latin America. We are driven by purpose, values. It's a company that has a very engaged team and a professional team. It's a company that has a strategic planning that is very robust. It's a company that has an enhanced execution planning, and it's a company that can operate in a unique way, making Ourofino a special company. If we talk about 20, 30 years of marketing condition, I understand they are excellent markets. Production animal. We are inserted in the production in the world. We are going to have 3 billion people by 2050. There are places that don't have access to protein. We understand that this is an avenue for growth, and there are other trends. We understand that a protein, swine, poultry, livestock will keep on accelerated, and we want to capture more and more the share of this market. So each one of you, you have an animal, you know this animal. And you saw that Brazil ranked second but against 50% of the U.S. To do a benchmark, the U.S., they have half of livestock of Brazil, and they produce the same amount. Directly? Yes. Market is market. We have all the things to be observed, but I believe we are very positioning in positive markets. Thank you for your question. And then it gives me the opportunity to summarize what Ourofino is. And we are -- why we stand out in this market.

It's midday, Brazil's time. Thank you, Kleber, for your words and presence here on Ourofino Day.

Thank you, Ju. Thank you, everyone. We are always available for having a chat, and thank you for your patience to have to spend these 2 hours with us. Hugs. Thank you. All the best.

So the other questions that came to the chat in our Q&A, they will be answered by our relationship team with investors. So all the questions will be answered. So to wrap it up, I'd like to ask some invitations. I mentioned that we have a space to talk about our organization, our culture, the culture that was changed last year. Kleber talked about that. You're going to see a QR code on your screen. You can aim your camera there and experience our values together. With Ourofino Animal Health, you are our special guests. And please, you can download our cultural e-book. It's on this website. And here, we have our social media. Ourofino is present in the 3 main social media in the world: LinkedIn, Facebook, Instagram. Okay, please feel free to follow our official profiles for our company, these profiles on your screen. And we have YouTube channel, youtube.com/ourofinosaudeanimal. There, you have all the TV programs, Ourofino em Campo and Amigo Pet. Thank you for your company -- companion here. Great Friday. See you next Ourofino Day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]