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

Good morning, everyone. Welcome to the Ourofino Day 2023. Most of you are aware of our history of our heritage. And we are here in order to update you towards our strategics of the pet health. For those of you who are following us for the very first time, welcome. My name is Juliana. I am Ourofino collaborator, and I'm very proud to be part of the history for 12 years. So now we are live streaming from our headquarters, Cravinhos, the countryside of Sao Paulo State. And now we have our plants here, our labs, and also our administrative department. And for the second year in a row, we are promoting the Ourofino Day in our studio. Yes, we have these structure with Ourofino and also the -- all the structure. We also have the Amigo Pet. Ourofino is the first vet company of Brazil according to the industry for the pet health. So we act in other sectors of the pet health. However, we are just starting. And we have endless possibilities to reimagine the pet health. You can be visionary. However, in order to find -- to understand the future, you need to challenge the key requirement and to provoke the way you think at every single day. When we seek for a [ training ], we then rely and we do something that's huge. And your dream might be the dream of thousands of people, those who inspire you, those who provide you joy and you can also be inspiration for others. Life has [ straighted ] once we think about a better day. We hold capacity to produce and the world thank us. When we've got a more strengthening relations then you start to understand our purpose. The more we take into consideration this principle and the current moment, we are then able to think about the future, and we want to go beyond. We want to connect our lives through wellbeing, health, growth and understand a new relation. We want to keep a very constant movement, long lasting. We want to challenge the current moment, and that is essential for all of us. We are Ourofino, and Ourofino is each and every one of us. Yes, we are Ourofino and Ourofino is each one of us. Many people, they are very curious and ask why Ourofino? Ourofino is the homage of a city in the south of Minas Gerais state. Confidence is a city where our founders were born. So then we've learned how to challenge the conventional thinking by seeking superior results. So we've planned for the Ourofino Day 2023, and we will be here until noon. You can also ask questions using the chat and at the end of the presentations our Board of Directors will be at your disposal in order to answer your doubts and queries. So we have here Kleber Gomes; Marcelo Da Silva; Strategic and New Businesses Development Manager, Angelo; Research and Development, Ferdinando Almeida; and our Directors of -- from our business units, Fabrício Oliveira from Production; Veronica and also [indiscernible] who is under control of the International Operations. We also have [indiscernible], who is our People and Sustainability Manager. So we are now starting and Kleber Gomes is going -- he has a team formed by 1,200 collaborators. And Kleber is going to complete 3 years for Ourofino. However, he started as -- he started many years ago. Yes, but it's going to be 16 years and 3 years in the Board of Directors. I'd like you to please go through that. Have a nice day. Thank you.

I'd like to thank you for being here and for your availability to be here. So we've planned this event very carefully, and we want to provide you a very useful information. So then for your decision-making process. So thank you very much for your presence. And we would like you to be here for the whole time. And we will be able also to answer all the questions that you might got. So as Juliana mentioned, when I joined the Board of Directors, April 1, 2020, it was in a pandemic, and I was taking over a new position. So we've got an ambition, and we want -- and we truly want to be the most admirable company in Latin America, which means that we are growing even more, and we are the fastest organization on the market. And what moves us on a daily basis? It's a purpose. We wake up every single day to reimagine the health live, the health -- the pet health by enhancing the livestock as and provide the support for our farmers. We have growing population and people, they need to have protein and technology enhances productivity, availability -- food availability in our world. Besides that, technology allows us to have sustainability for the livestock, for the production of proteins and the consumption is also about sustainability. Our purpose also comprehends company animals. So we want to enhance the livestock, pets, dogs, cats who are part of our lives, Oftentimes, animals, they bring us a very good position in life. So it's very good to have a pet. And our purpose -- be very novel, our purpose to come here is about the pet life. However, we also have got some values. And one of the first questions that I mentioned here at Ourofino was to go through to develop new strategies, along with our team who have got the possibility to support us in our 3 values, they are very important and they are very powerful. Why is that? Because everybody knows it's very clear. So we want to play to win, we want to take care of people and we want to connect the world. We have the connect with the world. We are a technological organization. We have developed research and development department, and we want to have technology in our DNA. But that wouldn't be possible if we didn't have a very good team. And that is towards the development journey and it's all about our people who will be able to support others, our customers, our partners and also the communities. That is our guideline. And we need to seek for new instruments and tools in order to know about our future and to align our purpose. We want to be the most admirable organization in Latin America. And we've got very good results. Talking about culture, I'm going to be showing you -- and I'm very proud to mention that Ourofino is the #1 organization for the agribusiness, and we've got this prize. We know that the agribusiness is very important, and the GDP is also important for a country. We have giant organizations in the country, even though we are the very first one, considering the Great Place to Work Certification. We are acknowledged by FIA as one of the best pharmaceutical organizations. And if we take into consideration our segment, we are the best pharmaceutical company on the market. We also are #1 considered the great places to work. In a macro view, we've got very good prizes, 11th largest industry in Brazil and we are among the 150 organizations that are very good to work from. So we have this rank. We are in the 52 position, considering all the companies in the sector. So we want to have a very good environment to work and we are in the right pathway. We also have got different learnings towards innovation, which is about being the most admirable organization in Latin America. And I would like to emphasize of the ESG innovation, that we are among the rank. We are in the second position of the agribusiness technology. Only Embrapa is in front of us considering this sector and we are in the front line, considering the agribusiness. We are also acknowledged by the Abrasca Award 2022 as the best sustainability report. We then have our intention, our availability, our transparency considering sustainability. We have received the award of the best organizations for Latin America. And also -- and we also want to take into consideration the Europe, South America, and Ourofino is one of the most admirable organizations in Latin America. So we are the single pharmaceutical organization that has got this certification. And this certification is very complete considering compliance, integrity, [ social ] responsibility and we are very proud for this acknowledgment. And we are being acknowledged by our customers. Last year, I went to [indiscernible] and I was able to see the milk production. So we've got the award of Agroleite. So we were recognized in the field from customers. We also have got prizes [indiscernible] that is very specific for our sectors. And last year, we've got different prizes. And for the very first time, we've received a climate [ trophy ]. And we don't want to have complaints from [indiscernible] and we deal with that in a very appropriate ways, which has resulted for this very important prize. But as I've said, we want to be the most admirable and renewed organization on the market. So that's why we are providing high-quality products in the industry. We have launched 18 new products are launching for pets, dogs, cats, and Angelo Melo, Fabrício and Veronica, who are the Board of Directors. And these -- this product range is aligned with our purpose, our trends. And we also seek for new markets. We want to explore new markets. We want to spread. And I should also mention about our international pathway. We have got subsidiaries in Mexico, in Colombia. And we also act in different organizations. So we have a very good market penetration. And one of the very important thing is our portfolio. We want to take products from Brazil, and we want to import abroad. So we have got the registration of products in our locations. We have got some products launched in 2022, and we also have got different products that we have developed. And we have our International Operations Director, [ Hui ] who will be here with us. I should also explore the topic about ESG. And I've said that at the beginning that we are very attached with sustainability. It is our core. And in advance 2022, we have created an independent committee. And we have got also our metrics. We want to hear the interest public, and we want to know what's relevant for the organization in order to focus and go through and thrive. We've got 6 topics, and it will be better explained by [indiscernible] who is our Director. However, results for us is something that we seek at every single day. I'm very satisfied with the results from the last 3 years. We have got 68% of our revenue, and we've strengthened our indicators by generating cash flow and a very important management system. And Marcelo will be jumping up on these results. And as far 2022, we have a very impressive brand, and it's the very first time that we've reached BRL 1 billion, 15% of our revenue growth and 20% of adjusted EBITDA. And we are very proud in order to be in this rank. 2022, we've got growth from that and considering these results, we have a strategic -- we have a strategic stakeholder, Mitsui. We have shareholders and billions of dollars investments. This organization is very influence in Asia, and they have been investing in Brazil. It's a proud for us. We are here embracing these new partnerships, and we are looking for the future. Mitsui opened doors for the Asian market. And we know that most of the molecules are discovered there. So then we also want to import our products and medications for Asia. And to conclude, I would like to talk about the future by emphasizing that here at Ourofino, we're a cross and open organization. And we believe that the world is giant. In order to capture value and have good strategic options, we need to explore new markets and we should also have a goal. So I'd like to thank you and I will return at the end for the Q&A session. I'd like to thank you for your availability to be here, our investors, our shareholders and partners. Thank you very much for your attention. Thank you.

Thank you very much. We want to go for -- well, after the Ourofino Day or in another opportunity, we'd like you to have a virtual tour. So please use this QR Code so that you'll be able to see our facilities and you'd be surprised. We are also providing here the link on the chat. So we want to know 2022 results and the financial pillars that sustain the future of our organization. We have a CFO, Marcelo.

Good morning. Thank you for your presence here. Good morning, everyone. It is our pleasure to be here. And considering this strategic plan, we have developed. So I'm going to start with the financial results on 2022 and I also want to have a reflection of our history. And we were able to grow 68% of the consolidated liquid revenue, 15%. And all of that is optimized, considering the triggers that we've got from the strategic plan from 2019. And this growth is very sustained. We are a highlighted organization. We are the largest organization in Brazil. We [indiscernible] very relevant plannings, and we want to become the most admirable organization in Latin America. So we have this expansion in our business units. As for the segment of animals and production that we commercialize products for the livestock, we've got 14.7% in 2022, and we accumulated 64%. It is very important to answer why is that very relevant? We have these [indiscernible]. We have a client base of 5,000. We have a very good and impressive product portfolio that allows them to go through all the therapeutic areas. We have a huge team -- huge work team. And we are focusing on the production, the application of our products appropriately. As for animals, we've had 14% growth. And having this effect considering the pandemic, this moment was during the pandemic. People, they were having social distancing, so pets were a very important thing for our -- for the human kind. We have technicians that -- we are the leader organization for the production of medications and considering the markets for the supplements product range and Veronica is going to be talking about that. As for international operations, we've got a growth of 18%. And this growth is considering the amplification, we have our core in Mexico and new products. We've got this new market share and the opening for new markets. It's important to emphasize that besides expanding our geographic and demographics expectations is a very natural head towards the inputs. And this is very important for the industry. We've got a very relevant growth. And as for EBITDA, 93%, 20% of increase. The expansion of EBITDA, we were able to have -- even though we've got adversities in the pandemic and logistics issues, we are strongly working in order to preserve our image. So we have a simultaneous actions in different parts of the organization. And within our industry, we want to have a better operational lever. So we have a very high quality index and a premium pricing. So we grew from the last 3 years, and we are enhancing the growth of the organization, image and our G&A, we are then able to improve our EBITDA. So the combination of our growth and our G&A, we were also able to increase our EBITDA even though we've got investments in research and development. The combination of operational market expansion, customized, allowed us to grow 13% in 2022. We've -- as for all the business lines, we preserved the margins, product positioning, reduction of cost, combining with the preservation of our personnel. All of that allowed us to generate BRL 157 million in our cash flow revenue. Thus, that shows our capacity of growth, and we have a very consolidated agenda. We have organic growth. And in 2022, we've got the acquisition of stem cell. So we have the operational cash flow growth. And we've got 1.8% -- 6.8% to 10.3%, we've improved the capital structure of the organization. So we have 10.3% of that year. And our cost is around BRL 3.4 million, BRL 3.5 billion. This very appropriate result and considering the current situation on the market -- on the Brazilian market, allows us to keep going. So we have 80% of this composition, and now we are growing. I would like to conclude 2022. And I want to thank you for your reliability by emphasizing our purpose and we will be for 2023 -- and we want to provide you improvements. We have a business environment that is somewhat complex due to some specific reasons and we want to advance considering the business. We have our drives of growth and Brazil is highlighting, considering our organization. We are very important, and we have this representation on the market. So we should never neglect the market opportunities, considering the productivity and technology. We will be expanding on the Latin America market. And we also have a very robust cash flow, low leverage. And we have the customer service -- top-notch customer service. And one of our assets is our brand. We also want to have a very good access. We have an industrial plant where we are able to produce and manufacture different products. So that's why we are very content to go forward. Thank you, Jul. Thank you.

Thank you, Mr. Marcelo I'd like to invite you -- those of you who are following us today, we also like you to please check our sustainability report that is integrated. So we've provided here the link on the chat, and you will be able to see this complete material work of our organization. Well done, so for us to talk about the pet health, we have endless opportunities, services, possibilities to provide to our customers and partners. The strategic development of new businesses, we have a partnership with the development and research. And Angelo Melo is here with us. Angelo, thank you for your presence.

Thank you, Juliana. Thank you, everyone, who are following us. Of the Day, Ourofino Day, thank you our shareholders. It's very good to be here once again and talk about our businesses. And the new products that we are providing and launching on the market. Our work here, especially what we are doing in the current moment, well, it's about growth. Growth is the foundation. Sustainable growth generate value for our shareholders through the satisfaction of our customers. In order to grow, what do we need? We need to have a product range. And the products, they go on a market from two sides. We have internal combination and open innovation. And we also complement the open innovation using the transformation of businesses. So that is very clear and we were able to provide this purpose. So the question is, where do we seek for new ideas? Where is this so? And one very important point for these information, new services, it's about the macro trends for each segment on the market. But more specifically, considering the macro trends, we should never forget that it's all about the health, healthy people, healthy animals and that changes our approach considering the development of products. And producers, they are subjective to these macro trends and the global trend as well. So this is extremely important for us in order in order to cope with the market. The increase of productivity is extremely important for producers for the livestock, cattle and sustainability -- sustainability is also linked with technology. So the new products innovation and the capacity to take this information -- to spread this information is very important for the decision-making process. So this is a very important point for us. Another very important point is the prevention versus treatment, where we have good opportunities, practices of betterment. And another important point is the role of antibiotics. Even though we work with prevention, antibiotics will always be used and that generates opportunities for us. And to complete, it makes a whole sense if everything is aligned with the pet health. So we have the ESGR and we will be talking more about it. As for our macro trends and animals pets, it's about the humanization of pet owners and animals. So today, we consider our pets as family members. So that's why we are very attached to the product profile, development, prevention and treatment and also the specialization for health care professionals. To date, vet clinics, we have orthopedics, cardiologists and so on. Thus, we will have a broader industry. Considering this strategic trend, we were able to define the strategy. And we have strategic steps. We will not get into much detail, but we want to show you the lines of products that were delivered from these strategic process. So we have any additives, nonantibiotics, especially for the livestock agribusiness, and this market was dominated and we have a huge opportunity. So we brought our first product range. It is very important, it is a single choice for the prevention. We've had -- we've launched 2 vaccines recently along with the other 2 from the past. So far in total, we have also medications and now we have different operation lines. And one important point is about the supplements. And considering owners and pets, supplements have a very important role. And these supplements, they support the treatment that is prescribed by vets. So we also have added value. It also complements the prescribed treatment from vets and the brand, Ourofino is a reliable brand. And we want to transform that to the market. So well said, we have these strategic set of steps and we need to deliver things, and we were able to deliver 18 new products considering our product portfolio by enhancing and boosting opportunities to generate businesses and bringing innovation to the market. We had 18 new products that came from the platform that we've acquired. So these products, we have the integrated innovation, a range of products, internal development. We have a national partnerships and also international peers in Europe. So that's why I'd like to emphasize our assumption. Well, [ talking ] about our identification process in order to find new opportunities, but we also need to think that in a short or long term, we need to consider products that will be launching in the future. Ourofino has always been acknowledged by its technology, state-of-the-art and innovation organizations. And we understood that we have a better opportunity. So this year 2023, we decided to separate new businesses. So we have a new Board in order to deal and cope with different relations and [ rupture ] products. So that's why we are bringing innovation to the market. And we also consider startups. So our wealth. Our team had the opportunity to assess 105 opportunities and all of them are very well aligned, so then we were able to approve 19 projects. And we also have the new products. It's about the open innovation for the pet health, the pet health care. So we have open project from the biodiversity. And we have [ Boticário ] ownership. We represented animals health care in [indiscernible] in Brazil. So we started with different opportunities. So, we have been choosing as the second largest organization, the fastest organization on the market. We are very proud. So today, we have different opportunities considering our sales pipeline. We've got 84 opportunities in different steps of our pipeline, 31 new products delivered since 2020. So thank you for your attention. I will hand back to you, Juliana.

Thank you very much for your attention. So as I was saying, a strategic development. We have a synergy with research and development. We have a very robust team of professionals here at Ourofino and we have here Ferdinando Almeida. He will be talking with us. Good morning, Ferdinand.

Hello. Good morning. Thank you for all of you. And it's the second year. So I was talking about the advances for 2022. And I also would like to mention about our future view and the perspective for the pet health market, the health care. So it's important to start by mentioning the overview of the governance model, research and development that we have adopted here. We were talking about the integration that we have between the Board of Directors. And it's extremely important to bring light and to talk about the development process. So we have 6 steps since the idealization when we have the very first assessment for new solutions, new products and that needs -- and we also have the development of products, detailed research, then we have a deeper look and the product that we are providing. We have all the technologic strategies with our partners. So thus, the first phase is our initial development of products and also the industry itself. So it's not only about the product but also the assessments and efficacy, efficacy proven and a regulatory agency that is in charge to support us considering our product launchings. We have worked in each of these steps with a well-established criteria in order to be pretty sure that all the financial resources, they will be bringing a return considering the deadlines that the organization and shareholders are expecting from. So those of you who are following us for the very first time, we would like you to note that we've defined our strategic plan and the development of biological products, vaccines. It is a growth strategy that we've got. And within these strategy, we started to develop some platforms for the development of these vaccines. We have these recombinant and conjugated vaccine platform. They are well known in the industry. So we are working with that, and we want to be well aligned with the market trends and technologies which makes the whole sense for us to have these platforms. Everything is well established in our productive plants. So we also work with the stem cell system. And on the stem cell system, we've got this new product on the market for 3 indications of diseases. And we are also able to leverage the platform for new indications. So that's why we have been working in the development of new products, considering the stem cell systems. We also have platforms for -- that we use in nanotechnology, which is extremely important and it opens a range of opportunities. For instance, we work with molecules that would not be compatible and in nanotechnology, so it is very important that we don't have only one single product range, we also are seeking for new products. We need to emphasize our development for the release, and the controlled release of pharmaceutical products. For instance, when we administer the medication for -- in an animal that allows us to be able to work in a better environment. We can also have a better administration -- an administration approach. And we also need to have a team, researchers, that is very important for us considering all the budgeting. Sometimes, we have a development -- we have a development team, and we have 96 professionals dedicated to research and development. And 30 professionals dedicated exclusively to biologic products. And we also have here a level of -- we have this product [indiscernible] 31% PHD. So we've talked throughout this event about the impartation of the integrated innovation for our progress. And I'd like to emphasize that we've developed throughout the years, and we are still seeking for new partners, new consultants. We have 23 strategic partners that work for the development of products and innovations in different product phases. And now we also have 6 international peers that are very relevant for us considering the know-how and expertise in order to boost our development and research. And now we have Mitsui, which is our new partner. So we have a better approach. And the number of partnerships, we are able to -- with this partner, we will be able to grow even more on the market and we will have a better development for the development of products and solutions. In order to have all of that, it is very important for us to have a very strong financial health and the company has evolved in the last few years. And I would like to emphasize the commitment that Ourofino has with the animal health care industry. And taking into consideration not only Latin America but also the other markets that we are acting on. So since 2019, we've got 7% of investments, 7% of the net revenue for the development of new products. And of course, our effectiveness is measured by all the results that we've reached and achieved. And I'd like to emphasize some specific products that we've launched in 2022, Angelo has mentioned about some, and he has provided a macro view of it. So I would like to emphasize about the product range and our portfolio of our animal health care industry. On the left side, we have -- we have a painkiller, Beniv. It's an innovative product for the pet health, injectable IV. And due to its innovation for the market, we were also able to contemplate the Fast Track category. So once we register the report -- the map, we have this disruptive and we were then able to have this licensing. And we now are able to understand this need for the market. So there is another emphasis, the line -- the product range of our supplements, both for cats and dogs. And it's important to emphasize how these products were manufactured and the technology that is behind. It is not about one single supplement. But we thought for specialists in the market, so we have a Consultancy and Advisory Board. And we are taking into consideration the qualitative aspects, the quality of each and every input and also quantitative in order to enhance the market, and we want to have a physiological benefit that oftentimes we don't take into consideration. So we have products that support and we also have products that are focused on pet anxiety. So we also understood, mainly considering the aging of dogs and cats population, some animals, they have agglutination problem. So we've got 2 types of presentation. One is a paste, oral, and we've got different reports. This is a differential. And obviously, we also have the snacks -- the snacks product. This is very important for us. So it's also about this time line. So these products, considering the time and development, we are now having a transferring of technology in order for our plant to be able to manufacture in a large scale. So we have biologicals, not only that, but we also performed the delivery of our protocols of registration. We have 4 potential products, and that is also extremely important for all of us. We are well established considering our strategic planning. Thus, we've got 58 projects under development. So my team is working for the development of these solutions. And from 58, we have 22 that will be for our livestock portfolio. And we have 13 projects for the swine products and 23 for our pet. So it's very important to emphasize that for our strategic planning. And we are committing to provide a high quality customer service and products. As for the future, our role is to be highly -- to be very attached and dedicated. So we've had the price 100 top start-up. So we are inserted in the innovation ecosystem, not only in Brazil but also worldwide and having this macro view. So this partnership is along with the development team, and we are able to leverage even more by seeking for agility and bringing new solutions that will allow us to leverage our growth in a faster way. As for our ecosystem, the ecosystem of the organization, we have other types of organizations. For instance, we've got different opportunities on 2022. We participated in ramps of opportunities with partners. So -- as for other industries, we also would like to have more partners in order to have best-in-class technology. We should never leave behind our pillar and having this digital bill, we have the development and research program. So we are using artificial intelligence to discover new molecules in order to have the chemical prediction of formulations, even before. So we have here the artificial intelligence, and we have this huge opportunity to decrease the costs. And also, we will be able to be more accurate. And considering all the new structure. We have also the ESG, our research and development. So we have formulations, analytical methods, bioanalytical and sustainable. Thus, we are boosting our ecosystem and the environment that we work. So we seek for the use of products for the well-being of animals. We have in our commercial product line, packagings that are recyclable. This is a continuous work for the next products. We will be focusing on sustainability. And also the primary packaging, the vials from pharmaceutical products, we want to use materials that are composed by nonpetroleum derivate as well as sugarcane. And we also have our ESG pillar, new methodologies for the project management, the governance, and we are always seeking for benchmarks. So then we will be able to have relevant indicators in our decision-making processes. And we also want to evolve with these projects and we would like to have even more -- we would like to assure that all our products are high quality, and I will be answering your questions. Thank you for your attention. See you. Thank you.

Thank you. So did you know how we seek for innovation for our pet health care portfolio? How can we access the market? So now we will be able to understand the business units. When we talk about protection animals, Ourofino has one of the most complete animals portfolio. And this business unit represents 74% of the organization turnover. Fabrício is here and he's in charge of that. Thank you.

Thank you. As Juliana mentioned, I am a vet and I've been working for 17 years. And since 2020, I'm in the Board of Directors, and I want to provide quality for the health care of animals. So you've seen this technological package. So we have studies in order to improve our products. So we have a solution package. Some of you are watching us for the very first time. And I would like to mention how it works here in Brazil. Our commercial structure, we have a sales team, sales reps, they sell our products to wholesale sellers. And we also have a bridge it -- we have this connection with technology. And then we generate positive results. So as you are aware of, the relevance of Brazil considering the pet health, we are very relevant to provide information and technology. Ourofino is positioned in the market, BRL 7 billion for the pet health. Our performance, the last 3 years, we were able to grow 64.2%. It is very outstanding considering our structure. And then with that we were able to have 4.4% -- a 9.4% of market share. However, that was only possible because we have a giant team of professionals in order to [indiscernible] our business. We have more than 110 items in our portfolio and business opportunities and more than 110 options for the productivity. So we have a different way that we access the market. We have approximately 4,000 customers directly. And through our wholesale sellers -- wholesale we have almost 20,000 point of sales throughout Brazil. So we are reaching producers, and we are spreading our product range. So we want to have renowned products on the market. Our reproduction line, pesticides. These products are in the wishing list and it assures producers to have a very relevant result for their business. So it's very worth it to use our solutions. And then we can have more productivity in our -- in the livestock. So I also would like to have a division. We have a production animals. We have cattle, horses. And we have more than 80 technicians specialists that are specialized in technology, which guarantees state of the art platform. We have more than 50 models customized to our producers. Our sales team access the market in a very polarized manner. And above all, we want to be closer to our customers. We've talked about the culture. So it's very important to be very close to our customers. And we also want to anticipate pains of the market in order to have a better overview. So this is the market, and we also have commercial peers. As for poultry -- as for the poultry and swine, in addition to all the technology that we have, we've launched new products for the protection of swine and poultry. So we have this one health platform. We want to access the market. We want to strengthen our presence. Thus, we will also be able to support other segments. Besides this structure of swine and poultry, within our restructure of production animals, we have technical and marketing segment, which makes easier our direction of actions. So we want to take all information and transform into data so that we will have a better solution for the producer in a faster and more practical manner. Thus, we will be able to achieve the results. All of these set of strategies allowed us to have a growth of 14.7%. It's superior considering the market. And we are very firmly going forward. That is the way we access the market and how we understand that we've got new opportunities. And above all, it's about responsibility to foster our business in the country. We know about the difficulty to cope with the challenges. So we have had a very important change. We have the Ourofino income pool. We have a TV show, Canal Rural channel. We have Ourofino. We've ads and propaganda that will make us to be more inserted in the market. So besides our strategy, our brands and products, it is also important to foster technology. As I said, swine and poultry is a new opportunity within our business, we've mapped out a new pillar of opportunities. And this year, with this change, we now have a TV show dedicated to swine and poultry. It's a TV show that there is in Canal Rural, so that we will be able to achieve others. So we've had a very important issues in order to foster our business. In the past, Ourofino, we had the intention to leverage our business and to make it -- to scale it. So we've launched the iUse -- iUse Saber. We innovated in the way that we provide information and provide knowledge. So I'm very proud and pleased to show you our purpose because we want to reimagine our view. And also that health care, we have more than 6 billion of rural fields in Brazil. And it's impossible to be in person in different locations. So the iUse help is a tool -- telecommunication tool that provides guidance and support for the market. So this is a brand-new platform that is for our customers. If you are one of our customers, so please access the iUse help. We'll be able to support you. So we are on the TV. We have the platform, iUse help and the iUse platform. We also have the easy ordering. So that is for resale. This app is available for our customers, and it makes easier the relation with our customers. So it was a desire that has turned into a reality for us. And then will you be able to access our market, scaling our technology, technicians and the whole chain. The result of all of that is the acknowledgment that we had in the field -- in-field acknowledgment and also our customers. I'd like to thank you for your support, and we are committed to provide best-in-class products. Juliana, thank you. Our commitment is more than only providing solutions to customers. We want to improve productivity considering the animal protein. Thank you very much for your attention. I will be at your disposal for our Q&A. Thank you for your participation.

It is very good to see this technological evolution in order to provide access to our customers. Thank you. And Veronica Martins is our Managing Director of the pet division. This business unit has a very good performance. It's about long-lasting relations. Veronica is here with us. Good morning, Veronica.

Good morning. Good morning, everyone. For me, it's such a pleasure to be here another year to talk about pet. Well, the pet market post-pandemic is fostered by 2 factors. The first is the increase of the number of dogs and cats and also the expenses for families. This cycle had been against during pandemic due to social distancing, home office, this proximity with animals, we had many animals that were adopted. So 2022, we've got back to regular levels. And that is considering a macroeconomic context, a global macroeconomic context that was not very favorable because several expenses we were not having during pandemic. But now post the vaccine, we are now having these expenses back. So we then leave this parcel of expenses for the pet. However, we have been extremely positive market, which is about also humanization of pets that has been happening for many years. Our market, pet health care, it is very important to mention medical specialties in the pet industry and specialist vets, they demand very specific products, services, solutions that were not required before, which is very good for us. So just remember, if animals are being well treated, thus, they will live longer and new diseases might also appear. So that's why we also need to improve the product range. So we have positive aspects that to foster our market. So it's extremely positive that we take the products to the market which is different considering what Fabrício has mentioned. Our access is made true that. So we need to have a network of suppliers, a team with more than 500 professionals, 30,000 stores. So we, at Ourofino, we are working quite good of the industry. And we also have this relation between Ourofino and doctors. And that's -- the influence in consumption habits of animals. So this is very important for us. We have a team that they visit that. We also have products. Well, so this work and the social media capacitation, all of that ensures that our product range to have a better market share. And as Kleber mentioned, our purpose is to reimagine pet health care. So I would like to have to approach here the last launchings. 2020, we had these this product line that is extremely different, exclusive technology for dogs and cats. We have a Maxicam solution, is one of our strongest brands in our portfolio, but we have a new introduction -- a new presentation of it. It's a solution for our better application for cats because cats, they are very important as well. They had a very index of growth. So cats are very important for this product line. 2021, we had these diagnose online, in which vets would be able to use it in a very practical manner to provide a diagnosis of animals. In 2022, we had many launchings. We have this team sell product based osteoarthritis that are very complicated and dry conjunctivitis. And this year, we had a privilege to help to have the animals and provide a quality of life. [ Beniv ] as you've heard before, a unique compound and also our expansion of our supplements -- of our range of supplements. So it is extremely important to talk about the supplements because their products that are very relevant simulation -- formulations. These products, they have added value and they have a recurrency of use. So the differential, as you can see on the video, in snacks are very easy. Animals acceptance tends to be better in this formulation because we know how difficult it is to apply medications in pets. And it's important to mention that or the cartridge -- the paper from our packaging, we have a 100% sustainable paper. So then we decrease the wrong discard. And the market is even more digital and everything is digital today. So that's why we have created the iUse Saber. It is a platform of content from stakeholders, and we provide relevant information for vet specialists and we are launching this month, the iUse pet, which is the app to have the connection with the -- with owners and vets. So then you will be able to input your pet information, the history. You can put vaccination information, medication, label, prescriptions. So for you -- for all of you who have pets, you can download it, and you can put all information. And to conclude, I would like to emphasize about our strategy of the expansion of animals, not only considering the medication market, but all the markets. And this picture, it shows our ecosystem strategy. So we are able to see the amplitude of our line, the SKUs in different segments, prevention and control care, steam therapy, supplements, we have a different brands of supplements, our digital initiatives, diagnosis. And this strategy is based up on some assumptions. The first is that our 4 products, they bring differentiation, both in its presentation, uniqueness but we are always seeking for innovation. And the relevance of this whole portfolio, we have products that are widely used in the industry. And we want to gain reliability and confidence from vets and customers. Thank you very much for your attention.

Thank you, Veronica, for your participation. And now it's about -- we want to talk about Ourofino health care. We explored for 16 countries and mainly Latin America. We have subsidiaries that are integrated in Mexico and Colombia. And just for you to understand, the importance of these countries is that -- both countries, they represent almost half of the Brazilian market. We have [indiscernible] who manages international market. Thank you.

Thank you, Juliana. Good morning, everyone, Ourofino 2023. So we have a giant team, Kleber Gomes, all the directors -- and we also have an industrial operations team, [indiscernible] for quality of life department, quality assurance. And I'd like to share with you some very important aspects considering the evolution of Ourofino and the international businesses, the solid drivers of growth. Our global growth considering the demand for animal protein, poultry, swine, fish. Latin America is key considering the supply of proteins, and we are very certain on the market. Even considering farms, technicians, sanitary protocols, reproductive protocols in order to improve the health care. With all these drivers, 2022, the structure that we have for Mexico, Colombia and the other countries where we are acting, we have commercial peers, and we are working for the expansion of our businesses in each area. As for 2022, we had a consolidated result superior to 18%. And then we were also able to achieve -- we were able to achieve 111.2%. So we act as the expansion of the portfolio. We have in smaller countries as for instance in Central America and the LatAm expansion, product expansion that we have a very important work. We will have this year, 68 approvals of new registrations, new packages. And that allows us to have these partnership. So let's take into consideration the markets where we act in. So Mexico is very important. It's the sixth global producer consider meat and poultry, seventh global producer of swine and milk and the first in the production of milk in Latin America. Mexico, 2022, it showed a concentration of production of meat and milk in larger groups and the food industry. So it is very important in this market. We have more than BRL 9 million of -- we have the -- we have calf expectation, and it also has a very good technological assistance. We have a very large consumption for poultry. We have the poultry protein leaving from 17 to 20 kilos. And as for beef, we have a higher cost. Mexico also consumes a high level of milk. So Mexico is also a very important milk producer. We have 378 eggs for -- considering the production of eggs. As for the Animal Health care, 2022, $625 million, 3% and the total market for all these species, and where we act the -- we had these 9% to 10% and 1.3% of market share considering the total market. So our participative market share, we had 5.4% of market of participative market share. And even considering beef, swine, we still want to fulfill some gaps. And we have this large market in Mexico. So what are we doing? Access to the market is extremely important. With our business partners, suppliers, the distributors, we have the model, in which -- we have a successful model considering customer service, our systems. And in 2022, we amplified our end customer foundation, 109%. So we amplified our field work. And we want all the customers to try our products. So as for the other market that we have another subsidiary, Colombia is a very important market for us. It's the third pet health care market, Latin America. And it's the 17th global producer. So Colombia has a livestock that represents 3.6% of the GDP. So it is a livestock that has got 9% to 10%. I went to Colombia. And before, it was BRL 23 million of the consumption profile, but now it has increased. So we have 36 kilos of poultry consumption. And as for beef, it's the second protein, third is swine. So this slide, we have from 9 kilos to 13, 14 kilos and some states, Mataji or others, they consume more than 20 kilos per capita. So it's a very consistent work. And the market versus Ourofino market share, we have a market total estimated in 2022 of BRL 250 million, 7.3% of participative market share. So we want to go forth. And the total market share of all these species, it decreased in Colombia, 3.3%, but we still have got improvement in that market. As in Colombia, before our strategic team and our partners, we've reached almost 4.8 points of sales. We have a well-structured system and more than 13% of growth in the client base considering the generation of demand. We also launched, in Colombia, original products. And this is extremely important. The third pillar for international strategies, we are present in 14 countries. And we have 4500 points of sales and we will be able to grow almost 20%. So this generation of demand is made through our partners and our team considering the capacitation and technical specialization. So as a summary, we are able to see international expansion. We have 2 subsidiaries, Mexico and Colombia, access to the market, new products. And 2022, we've got this new strategy of the portfolio. And for 2023, we have 60 launchings. So we have 8 or 10 SKUs, more than 60. And we are providing this range of products. We are bringing 4 products to be launched in 2023. And most important, we want to have access to the market. 2023, we've reached Chile and the Dominican Republic. So as a conclusion, in 2023, our focus, we want to strengthen the generation of the demand by replicating the Mexico and Colombia model, the business model. Specifically in Mexico, we have a demand for growth, opening and consolidation of new strategic channels in Mexico. We have different regions that we are not present, and we want to improve in this manner. The increase of penetration and the growth of the health protocols and animal productivity. It's not only about delivering products, but also considering the cost benefit ratio. We also want to strengthen the customer experience. And I use the iUse because it's now a reality for Mexico, Colombia, and we've generated possibilities of new standards. We also provide information. We want to generate at a better journey. So as far to new markets and our objective is that we want to go forth considering this possibility of expansion and also taking into consideration Asian market. So we want to evaluate the possibilities. And we want to take into consideration the Asian market. And Indonesia, we were able to promote our products. So as Ourofino, we are taking into consideration what we've built 2020 to restructure and establish a foundation 2021. We worked with the consolidation. 2022, 2023, we want to expand our portfolio and diversify segments. For instance, vaccination of swine, Colombia, Mexico, Latin America and 2024, 2025, we want to acquire markets. Even considering this strategy, this new strategy, this new business model that we have from Ourofino. Thank you very much for your attention. I will hand over to Juliana.

And so we are mentioning here, we will then have the Q&A session, okay? So here, on the tool kit bar on the bottom, there is a Q&A button, so you can click there and ask your question. The last presentation of our event is the main resource. Here at Ourofino, we have the Ouro fans, those who connect with our purpose. You can be one of the Ouro fans. We collaborators, we have a common characteristic. We are just passionate about what we do. As for the culture and sustainability, and ESG, we have here [indiscernible]. Good morning. Thank you for your presence here.

Hello. Good morning. Good morning, everyone. I am very proud of what we are building for the future because people make a difference. We have a team of engaged personnel accredited to the purpose of this organization. In the beginning, Kleber Gomes mentioned about our purpose to reimagine pet health care. And this purpose guides us through 3 central values: play to win, care about others and connect with the world. They are the triggers and they foster all the numbers and strategies that you were able to see to be present in the organization. I'm very proud and honored to talk about GPTW. It's a consultancy and Advisory Board that ran a poll. 80%, 90% of our people are satisfied with our practices of people and culture. Another very interesting data is that these survey asks what is the reason that makes you be here? 30% answered that -- the answer is that it's about professional growth which means that people can build their careers. However, the most outstanding value is about [ 37% ] of our people. They responded that they want to align their personal values with the organization's values. And do you know why we are very proud from this number? Because we had 150 best companies here in Brazil, and we have 80% of the rate. So we have this alignment of personnel and organizational values. So this progress is conducted at every year. And I'm very proud to show this evolution. 2021, we were in 83 position. 2022, we evolved to the 52. In the year, it's about 31 positions that made us to increase. Effect that makes these this to be continuous is to emphasize our programs and also the organizational culture. 2022, we have the people personnel who were able to have opportunities. It's also about self assessment. And a very profound feedback and accurate. And as a consequence of these very robust development, we also have the meritocracy. And people from Ourofino they were able to be acknowledged due to their behavior and deliveries. We truly believe that our leadership makes us to go forth. So we continued our development of leaders, individual and collective. Leading ourselves means that we will be able to lead others and the whole organization as well. And strength from this leadership is about our diversity and inclusion. We are also very happy to provide you this data. We know that the agri business, 19% of women, they occupy leading positions according to the IBGE. We have 37.2% of women in the leadership. In our high leadership, 33% of women in the high leadership. It's not only about the number of women and gender, we also are monitoring -- we are also monitoring the salary equality. In Brazil, we have the wage difference between men and women in leading positions. Brazil, 78% and [ OFSA ], 92%. The more we promote women, the better it will be for them to start their career. Both me and Juliana, we are in a higher level. It's not about a leadership that is only for men or women, it's for everybody. The GPTW brings to us a concept, GPTW for all. 54% of our leaders in 2022 are considered for all leaders, leaders who aggregate and who can generate connections between people, business and our culture. By respecting diversity widely, leaders do not believe that. So 2022, we were able to reach 51% of the evolution of internal opportunities. 51% of vacancies, they were held with our people. So we reached a healthy level. 50% of positions fulfilled according to the internal acknowledgment of our personnel and the -- also the experience from people from the market. In order to ensure the preparation of our people and our future and challenges, we have developed iUse In, is a continuous learning platform, where our people can improve their skills and not only through the system, we've also prepared an environment for a better performance. So we have here this professional engagement and on our whole ecosystem. So you were able to perceive that we have additional initiatives that generate value for our people, for our customers and all of our stakeholders, iUse In, iUse Pedido Fácil, iUse Saber, iUse Help, iUse Pet and iUse [ Davus ]. All of these actions, 2022 brought to Ourofino  very important acknowledgments. Kleber also shared with you that we were voted as the best organization in the agribusiness rank, 2022. But now I would like to highlight about the visionary -- the visionary award. It's not only a Kleber award, but 1,200 people who wake up every single day in order to make a difference, our collaborators. I also would like to share with you our ESG journey, our commitment to build a better future for you and for the next generations. We identified our journey in 2020 in order for us to have an accurate integration, any strategic planning. So we've created the commitment policies, ADS and the sustainable development objectives. Unfolding goals and actions in order to assure that this journey will be excellent. So we have these materiality process, in which we define priorities. We've heard more than 600 people from different target public and we also -- we also provided the result of materiality. So then we are able to have a 6 teams, material teams in order to make the ESG journey to happen in practice. Within the environmental pillar, we have the animal well-being. It is about practices, solutions, animal well-being, considering products and services testing and manage. So it's also about the climate change. We've created our commitment by mitigating the greenhouse effect, decreasing the greenhouse effect. We have here the supply chain management, and we want to diversify our partnerships, well-being and people's valorization. It's about our people, our customers, our community, people that interact with first. And the third one is about food safety. So we want to provide the best animal protein in Brazil and the world. We want to connect with the world our values. So we have research and development and we've used artificial intelligence. So it's about how can we bring the digitalization to our business. This whole ESG journey is possible from the initiatives and participations that we have. We have Advisory Boards, consultancy and all of that is to our journey. And I'm very content to be able to announce our sustainability report. And today, we have provided -- we have developed our ESG website, so you will be able to access it. Thank you very much for all your attention. Thank you, Juliana. Thank you.

Thank you very also. I'm also very content to be here in this organization and contribute to the population. Thank you. Great.

So let's just answer the question. So if you've got any questions, please don't hesitate to send through the Q&A button, our Board of Directors is at your disposal. We are not simplicity. People that we are, we plan every single detail and we think as a whole. However, in an uncomplicated manner. We've reached it outstanding goals by respecting differences and environment. We are a partnership and reliability. Thus, everything will be in Sinton. We are not only entrepreneurs. We are entrepreneurs passioned by what we do. We play to win. We are agile, and we never leave things behind. Why? Because we wake up in the morning with this positive feeling to win, we are focused, engaged, accredited. We challenge the now, and we reimagine tomorrow. We are many, but we are unique. Each one of us have got a different story. Yes, we are like that. We care about people. We dream and we seek for our dreams, and we also realize other people's dreams. We are connected with the world. Our DNA is to be a partner. We seek for it innovation, and we are digital without leaving the humankind behind because we all together are a team. [Presentation]

Great. So let's just answer the questions of those of you who followed us, Kleber is here. First, Kleber. How is the organization seen the macro view and the impacts towards the business?

Well, I'm sorry about the time, we ran a little bit late. So as for the macro overview, we know that it's not the appropriate moment. Macroeconomics, we have a very high interest rate, inflation rate. Inflation is high. And it's very important and Marcelo introduced that we have a very low leverage. We are generating cash flow, and that makes us to think that we are somewhat prepared. And even considering the future at Ourofino, we don't choose the challenges, we try to deal with them the best way possible. So we are prepared to work in this environment. And I'm very confident considering the trends of the organization.

Another company -- another question, what can we await from the Mitsui as a partner?

As you are aware of, we are focused in Latin America. We have a work that is very important to be conducted. And we believe on this market. I see 2 concrete possibilities. First, we want to be more present in Asia Pacific. And Mitsui is strongly investing in animal health care. And we are seeking also for our technology, especially in Japan. So I imagine that the OTC, the over-the-counter products in protection lines, I do see a space for -- to explore this market. We are going to study to develop along with Mitsui market possibilities. And then we will also be able to register new products. But undoubtedly, it is a new way for us to grow.

Now Marcelo Silva. Marcelo, next question. How does the digital ecosystem connects?

Well, that's a good question. I've mentioned in my speech that in Brazil, there is a big opportunity considering the technology. And it's not only about medication and the -- and that -- it's also about the management of animals. Even though we have got the different customers, often times, we don't have -- we are not able to have the visitations at farms. So we want to provide knowledge. We want to teach, to provide knowledge to spread information to producers, farm owners. So part of our strategy is a process. It's about the learning curve. Another important point is to make easier communication. And a third point, considering our ecosystem, is the -- for instance, the iUse is a platform to connect customers, producers. So our strategy will be against considering the market.

Thank you very much for your participation. Okay. We are not going far. So I would like to affirm that our team, Investor Relations team will be at your disposal. Okay. You can access our website, ri.ourofino.com, okay? So you can contact the team. So now CEO, Kleber for the closing.

Well, we know that it's lunch time. Thank you. Well, I'd like to thank you very much for all of you who followed us. It has been a pleasure to be able to inform you about our results. We are very content. We are very confident considering the market, market opportunities. We have one of the best spots in Latin America. We have our digital platforms. We are launching products. Well, in summary, we have a very important financial health, and we are prepared to go forth and make the market drive. So all of our channels are open for you. You can contact us. Thank you very much for your availability for our stakeholders, our commercial partners, our team. Thank you very much for all your attention. So then we can provide the best-in-class solutions to our customers. Thank you very much once again. Thank you for your presentation. Thank you.

Thank you for your kindness. And thank you for being here with us to get to know about our practices. This is Ourofino. We are here to reimagine a health care, and you can access our social network. You can find us on Instagram, TikTok and Linkedin. Thank you for all your attention. See you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]