Raia Drogasil S.A. (RADL3) Earnings Call Transcript & Summary

Ladies and gentlemen, welcome. We are here, once again, in another RD Day. Unfortunately, we cannot meet in person as in previous years, but we are gathered here online. First of all, I would like to let you know that we took all the necessary care. We're still in a pandemic. I am here not wearing a mask. But behind me, you'll see that there is a team wearing masks all the time. The production team and everybody took a COVID-19 test to make sure that we could have this meeting. This is the 10th RD Day. We are now celebrating 10 years of existence. And just like in the first RD Day in which discussed the plans for this new company for this new venture that was just starting out, I think today is no different. We're speaking of a new RD, a digital company that's prepared to work in platforms and to drive its digital culture. We have a very rich program today with many dynamic presentations in which most of our executive management will speak together with members of the Board. And we'll be able to shed some light on our strategy and our evolution ever since we started with this new strategy, and we'll also disclose some plans that you're not aware yet. So without further ado, I would like to now hand it over to Marcílio , our CEO, for his opening statement.

Good morning. Thank you so much, Eugênio. Good morning to all. I'm very happy. This is the 10th edition of RD Day. And of course, this is a very unique situation for us. We are broadcasting this meeting. We are very good at on-site meeting. So I would like to apologize in advance if there are any technical glitches, but I think that we're really mastering this art now. This is the third online edition. We had one on September 30, another one on May 17 on sustainability. And we'll start today by giving you an account of everything we have achieved based on the plan introduced on September 30. So to get started, I would like to now hand it over to ACP. He is speaking from home, and he will give us his message. Can you see me?

Yes, Marcílio, I can see you. Good morning.

Yes, I always like to announce him like this. I remember last time we had a meeting of 10,000 people, and this is how we did it. So please be welcome. We are here with an audience of investors watching us from afar. Good morning, ACP.

Well, first of all, I would like to thank you all for participating. All of you, ladies and gentlemen, who are here to listen to our plan, it's always a reason of pride for us to have gathered this audience. And this nickname I have, ACP, has become my moniker. Before, we have different names that were used -- it was my familial name -- and ACP, Antonio Carlos is my name, Antonio Carlos Pipponzi. I led the expansion of Droga Raia from the early days. I have a degree in engineering. So from this very technical background, I ended up working with pharmacies. I led Droga Raia for 34 years. And now after the merger, I'm now Chairman of the Board now for 10 years. I would like to give you a very quick time line of -- I don't have much time to speak, just in minutes, but I would like to go back to the early days of RD. And our goal at that time was to expand geographically. It was a race. We wanted to open new stores and getting there first to the finish line is what make the difference for us. And I think that we executed this plan very well. We had 4 years in which we made use of our intelligence, market intelligence. Still today, we have been becoming more sophisticated and developing a very refined strategy. We have occupied spaces in all Brazilian states. For several years, I have worked in retail. And I can tell you that it's very difficult to be a strong company outside of your origin market. Usually, you can master your origin market at an additional 2 or 3. But with the growth we experienced, we were able to secure a very strong position in all markets. Of course, we have competitors, but we are very relevant players. And when I -- let's imagine that our deviation in sales is 12% up or down in every state. This means that we have a very relevant market share in all of those markets. Well, we have said in previous events, "Well, what about the lower-income classes?" Well, expansion has been able to embrace all of those classes. We always start with the lower-income classes, and we are able to be successful because of the quality of our offering. But now that the higher-income centers are now saturated, we were able to move to the outskirts, to the peripheric areas of cities. And we have some major breakthroughs in that. I'm referring to the markets of Para, Maranhao and Rio Grande do Sul and Santa Catarina, for example. And our return rates did not decline. In fact, they have accelerated. We are in a process where we have smaller potential. Our average income is going down, but our return rates are climbing. This demonstrates our strength as a company. We can create a valuable offering for all social classes. So with our 2,400 stores and if we continue on this growth trajectory, that continues to accelerate, we'll have extraordinary growth. Even if we stopped here, because of all of our strengths, we would be in a very enviable position. So what happened in 2018? We reviewed our strategic plans, and we saw with a lot of clarity that our physical expansion would be key for us to implement a digital strategy. It became crystal clear for us that we didn't have a separation between e-commerce and brick and mortar anymore. It was an omnichannel world where the customer didn't have to go into the store walking and paying for his purchases at the cashier. Thanks to digital technology, we can switch back and forth between physical and digital. Only a very small amount of our clients uses e-commerce. So our business is about relationships. Our business is done on the stores. And our strengths include proximity with the clients by -- we know that capturing clients is something with a very low cost for us because they're very close to us. 70% of our customers are around 1,500 meters away from one of our stores. So low cost of customer acquisition, the ability to gain the loyalty and also attract those customers to the online business. And with this proximity, we can sell them, not only products, but also services much more quickly. So these strengths create a very important entry barrier for other digital entrants. So we had an opportunity of increasing our share of wallet as well because we keep adding new customers to our base, especially when we move to the outskirts of the cities and the noncapital areas. On the other hand, what must we remember? We know that we want a higher ticket in every purchase, and all of this will drive exceptional growth. As if this was not enough, now 1.5 years later, we started seeing that the health market is consolidating. So we can go further than retail. We can become health ecosystem by adding all types of services into our structure. And why are we so strong? And why is there such a huge potential? We generate a huge volume of data on a recurring basis. 45 million customers walk into our stores, and they give us this ability to store their data on a recurring basis. This doesn't happen elsewhere in the health industry. For example, you can visit a test diagnostic lab 3x a month. We are talking about 3x a week on loyal customers. And all of this, of course, enhances our chances of conquering more consumers. So we are growing more ambitious. We will continue investing and being strong on physical and digital retail. It's on this layer that we'll add products in our marketplaces and services through the health platform, always resorting to our strength. So it's an extraordinary moment. One of the most promising I have seen in my 34 years leading the company. And I would like to finish by saying that to put everything into place to implement these plans, we need a strong team, and we have been very successful in that. We renewed our senior managers, I'm not talking about the VPs. We made some important changes. We also opened new jobs. We attracted major talent, and we have now a solid team. Of course, we have the challenge of transforming technology and keeping those talents in our staff. And at the same time, something that's also very important, our governance and our Board are very active. There's a strong separation. There are 5 committees that also contribute to the strategy and enhance our activities with their knowledge. We have increased our Board with 2 more Independent Board Members. We have now 5, with different characteristics and talents. And we are now prepared to implement this project, in which we won't leave our mothership behind, which is retail, but we'll look to new perspectives. Because now we have a broader range of products and also of services. And what is our greatest goal? What can we achieve with all of this? We may become the largest company in Brazil promoting well-being. We know that aging is something that adds to our bills in the country. We know, for example, that the solution lies in prevention, in reducing the numbers who fall ill -- the numbers of people who fall ill. So we'll start by reaching the markets the way they are, but we'll also veer our strategies towards the lowest-income segments. C1, C2 are some of our targets. So thank you very much for this opportunity of speaking to you. Marcílio, I hope I didn't take much of your time.

Thank you very much, Mr. Antonio Carlos Pipponzi. It's great to know that you're here to support us in this very innovative strategy. We were able to hear Antonio Carlos speaking about this renewal. And he mentioned some very important points of the new company that we are fostering. I know that you're watching from home. Please let us know later how it went, and thank you for supporting us for these 9 years that we've worked in the company. Have a great one. Thank you, Antonio Carlos. So let's continue now with Cristiana Pipponzi. She's our next speaker. She's a member of the Board, and she is the person leading the Sustainability -- she's the Head of Sustainability Committee at RD. So she will speak about this transformation that couldn't be complete if the company didn't take its leading role and went beyond retail, thinking of consumers and other stakeholders. Okay. Cristiana, you have the floor.

Good morning, everyone. It's a great pleasure to be here to talk about the sustainability, such a hot topic and something that has gained a lot of space in our agenda. As Eugênio and Marcílio said, we had a very important meeting in May this year in which we presented our 35 2025 sustainability commitments. And the idea for today is to give you a little flavor. We have chosen some of these points to share with you how this fits our higher-level strategies at RD. The 3 important messages that I would like to begin with. Could you please change the slide? So the first of all, as Antonio Carlos has mentioned, our strategy that all of you have heard about is the result of a reflection process based on the changes affecting society, digital, the transformation of health that also created some important avenues for RD and sustainability. I think that we are -- we have clarity on the fact that people are now becoming more aware, and there is a greater urgency in addressing the challenges we have in sustainability and both with the threat of climate change. So it's great to be able to look at those strategies and to see possible solutions for those transformations. And we have to speak of our privilege of building a business that, indeed, has avenue to resolve people -- as outcome, people's better health. That means our strategy served us. That's what we know. If we look back 10 years -- in 10 years' time and look at what we've built, we know we have the conviction that we have left a better society. We've made a better society, because our business addresses the issue of improving people's health care, especially in fostering and prevention. And we know that the business goals has a lot of challenges when it comes to the fact. And that's why we created such a comprehensive robust agenda, filled with commitment so that we can mitigate negative impact and amplify all the potentials that we have for regenerative actions. We really like the infinite symbol, the horizontal 8, because this is how we can work more and more. That means business growth drives positive impact, and business strategy is sustainability, and ultimately leads to a better society. Now the third message is about the commitments themselves. Like I mentioned, this is actually available in this QR code. Please feel free to scan. And we've organized our 2030 aims in the list. One, healthier people, healthier businesses, healthier planet. We have 8 major aims, and we have also -- so 8 objectives and 35 goals. It is important to highlight this because we've spoken about this at the release event. And why are we actually stressing publicly these goals and objectives the way we're doing it? Because we have a decade ahead of us, and we know how important it will be in terms of defining the future of the society that we'll be living in, with veering objectives straightforward public aims. So our understanding is that we have to accelerate this agenda. And a major point for us, it is the comps, just do our thing, and that's it. And that would be enough to solve complex problems. So make it public. Undoubtedly, bring a lot of people with us. So we need to take on this protagonist role and make -- change everybody's role and not just a 1 person role and agenda. So here, we have some of the goals that we've defined, as 2030 important goals. So by the way, we're at your disposal. Available to schedule conversations and deep dive in every topic. But here we have 8 objectives that we're highly asked about in discussions that we carried. When we speak of healthier people, what do you mean? There are 2 aims connected to employees, to staff. So in order to reach healthier people, we're speaking of staff, customers and society and community, meaning the most vulnerable population. So we have 2 staff goals. Because in our human journey, when it comes to strategy, it goes through a major cultural change. So on top of our retail DNA, we have to place this other layer of a health care company, and this movement has to come from inside out. So here, we have 2 major goals that have been set, and we've been experiencing several things. We've been trying things in health conversion for the inside audience and objective is reduced by 50% of risk factors of employees monitored by the RD's health habits promotion program. And we also have the commitments to offer to -- programs to 100% of employees mapped with chronic disease. So they're invited to be part of our healthy habits promotion program. It's been very rich when it comes to constant learning. The other goal is Community Healthcare. So we do private investment in a more effective way. The pandemic has been a milestone, not only for our company, but for major organizations, to all organizations when it comes to private investments. The BRL 25 million being donated to hospitals, distributors all over the country, special far rural -- farfetched regions, rural regions, remote regions. And here, the goal is to reach 3 million people in a situation of social vulnerability through our integral health initiatives. We've been carrying out great work in placing all our assets and our network at the service of this private social work, like the case of hospitals, where all our stores had a major role in ensuring that resources would get the right time, the right way and consumed as demanded. Now for healthier business. I've highlighted some diversity goals we've carried out. In terms of the work, Marcílio will dive deeper about the topic, where the objective is to achieve gender equality in all functional categories at RD's headquarters, pharmacies and distribution centers. We also want to increase black representation, getting 50% of all black people in leadership positions. And as for job opportunities and development -- and career development, I think everybody knows about our career development opportunities not just about a salary and a job, but we have means for career development. And with that, we hope to provide 10,000 income-increasing opportunities every year and with -- for many years to come. Now for healthier planet, we have the 2 goals. One is reduce green gases and emissions and offsetting. As for emissions, the objective is to reduce Scopes 1 and 2, meaning within the levels below 1.5 degree Celsius. And that is compared to our mapping from 2020. And as to the offset point of view, we have set our goal at 115%, also based on 2030 but Scopes 1, 2 and 3. So as you see, the agenda is more comprehensive than this. But I've just highlighted some goals so you can take the temperature of our ambition where our focus is when it comes to the sustainability agenda. I'm going to wrap by highlighting the fact that we are available at your disposal for discussions and conversations. We have been exchanging -- there's been some great constructive beneficial exchange with all of you. We've been consulting with experts about the 35 objectives before the release in May. So it is a pleasure to dive deeper and talk and evolve in this journey. Thank you so much. Thank you for your time. And now I would like to invite you to watch this video about our commitments. [Presentation]

I am so happy to see in such short period of time this work of sustainability, what we have achieved and what we have still to come in the next years. Now let's continue with Marcílio Pousada, our CEO, who is going to cover strategy. Now he's joining us on stage. Meanwhile, ask questions. Submit your questions on the chat. And at the end, we'll have a Q&A. And we will address your questions and comments. Marcílio, the floor is yours.

Thank you, Eugênio. Thank you, Kika. It is very nice to see the ESG agenda getting stronger in our company. It is not something new. We've been speaking about this for some time, but now we're more organized, put together better set. So I'm going to go back to our business. So the dynamics for today, meaning, how are we going to work today and tomorrow? Look, the event is not Marcílio's regime. The event is VPs speaking to you strongly. Let me give you a strategy overview. And then I will go pass the floor to VPs so they can cover more ground. Now how did the strategy come up? Meaning, what was the starting point for us? We started exploring this when we noticed -- with the coverage of our company. The 2014 project was the North project, meaning to occupy with efficiency the entire retail network covering Brazil, and we executed that very well. And indeed, we are a drugstore that are fully represented in every region where we're at. Our figures are quite impressive. But if you look at what we, per store, our native market, what we made in Sao Paulo and the rest of Brazil, the difference is very little. And the number that makes us proud with the regional occupation is that we are 44.1% of the Brazilian population has a store of ours at 3 kilometers. So that's what the North project are all about. And then what's the next step? What's next then? So we've put together this plan. We always have this piece in documenting hands. In every presentation, if you look at our presentation before 2019, 2020, we had a North project document. And now we have this document that we call our 2025 strategic plan. How did we do this? First, we looked at our company's purpose, to closely mind people's health and well-being at all points of life. That would strengthen and move us and drive us. And it is come and serve. And I believe it's contemporary. This is the purpose that has driven this business for 100 years now. So let's keep it up. Let's keep it moving. Looking at our purpose, being confident in that, we've worked more strongly on how to make it more a sustainable company, with the infinite symbol like Kika showed you. So everything we do at the company, we can give back to the society and generate a win-win impact for all. So we looked into this carefully, and they're working full-on in our company now. Now most important point about the -- of this plan is leading an organization that is pharmaceutical drug store retail kind of profile. Now thinking about an organization that delivers a wholesome health care to customers? Meaning, our business scope is more ample, more comprehensive, meaning we're looking after at different points with customers. And there's a shift in mindset. Why? Because customers also -- actually come to customers. When we come to health care, the entire health care chain, we are the ones that have most contact with customers. We are the ones who actually are part of customer's life at all times. So this is what's best: to be part of their lives working so that we can deliver integral health. So if it's 360 degrees, if it's integral wholesome, we need to have other strategies, other drivers. So the 3 pillars are -- the pharmaceutical retail pillars. One, new pharmacy, more omnichannel, more of a health hub and using all the facilities -- enable all the facilities of omnichannel. Second it's a marketplace. It's about a healthcare products marketplace. And third, it's also a healthcare platform. So that would be the ecosystem that encompasses all. Now in order to do so, we have to properly work on our enablers, which are at the bottom of the screen. Now at our company, we actually speak about this. There was a VP last year that would say all our meetings are about accountability. Our -- this meeting and my VP is about being accountable about our plan. To show you to actually report our responsibilities. So let me tell you a little bit about new pharmacy, and what it's all about. Our new pharmacy had an ongoing digital business happening. Now remember, April 2018, we placed all our pharmacies -- all our drug stores, it was 1,900 stores, in pick and pay. So you would purchase online and would pick up in under 1 hour at the store. And there was pioneer, the whole of Brazil kept this ball rolling, and was not only the main urban capital, cities like Sao Paulo, all over. When the pandemic hit, we thought, obviously, we'll benefit from the digital business with the pandemic because we knew we would grow. The digital business is now nearly 90% of our business. And it started showing growth rates that -- it's actually exponential, meaning it's still growing even with the pandemic actually getting better. So yes, customers want to stay online to make purchases. And so people purchase online, and the brick-and-mortar store has a crucial role. One, in order to help download apps. Plus, for delivery. 80% of our orders are made straight at actual drug stores. I was looking at a report the other day, and our figures are very interesting. It's getting more decent from regular pharmaceutical download access, and it's getting closer to digital purchase as a whole. So this is already a reality. It's already here. And this is what the new pharmacies were about. And yes, the new reality started -- working came with the pandemic. That made -- that really pushed business and made major growth nearly 3 million pre-COVID tests up to -- and I remember telling people, let's make this business. Let's have 1 million tests. 1 million tests in the first year. We got nearly 3 million. But most important about the test is to re-signify the pharmaceutical role and the drug store role. So the health hub, together with omnichannel, is already happening. It's already taking place. And our work now as executives is to keep this business at the pace we're at. The second part of our strategy relates to marketplace. Now we imagined not from one marketplace creation, but the marketplace for health care in Brazil. Meaning, using our entire capital, our market penetration. 2,400 stores all over Brazil to help enable customers' life to have access to health care products, beauty products and well-being products. So this is the beginning of the business. Further explanation will follow. Only 230 sellers now. And we've started to understand what our relationship with seller is like? It's different from a regular vendor kind of relationship. We need to understand what it is like to manage so many SKUs? We have usually 13,000 SKUs. Now we have 60,000 SKUs. And the importance of having full due diligence when it comes to marketplace. We need to properly -- offer proper products that's quickly affordable. Shipment affordability also matters. It is not only placing affordable products in the platform, but it actually makes a difference and its successful shipment-wise. So that's full offer to our customers of something that we've always done really well in the past 100, to actually make products get to customers' life. This is what the marketplace is. This is the initial strategy to further discuss later. The other strategy is our health platform. It has already been launched. So later, we'll hear more about -- well, we acquired tech.fit and it became Vitat, and Vitat came with some applications. So we saw that we're now feeling what it's like to have an app with 40,000 users. Or how to have a website that's filled with content that tries to drive improvements in health care and well-being. And we will have our 40 million customers to learn about this through our context. So we have launched the Vitat app. We are now connecting marketplaces, both product and services. I visited our store in Avenida Paulista, our flagship store. We have a team that is doing measurements, blood sugar. And this, of course, is giving a new meaning to the pharmacy. We are raising this to a new level. The strategy is now gaining traction. It's still fairly new to us, and it will make progress very quickly as we digitalize our relationship with consumers. So what is important for us to talk about? Just like what we did in 2014, the strategy itself doesn't stand on its own, unless you have new competencies in the company, what we call enablers. We need to make sure that the company is transforming as well. And this is what we saw in the new hires, the new team that's going to transform the company. Enablers are very important, and we'll see about them today, both focus on people. Susana will speak about the transformation and how we view this company. We'll talk about the customer-centricity whereby the lifetime value of the customer is assessed. We are very good at knowing how much is sold through each store. Now we need to find out the value of each customer. Understand their journey. This is a huge transformation, and we'll have to assimilate this concept to understand what the funnel is like, the life cycle for this customer. We also set up some assets to enable the top level B2B logistics in Brazil. Our 12 DCs distribute products for 75% of our stores. I think that this was essential for us to really occupy Brazil. And now we need the humility to understand how to best use this asset base, both the DCs and the pharmacies, to make fast deliveries under 90 minutes. We do this in all major capitals, but this is a very important goal for us. The 1P logistics and 3P logistics addresses the seller markets. For example we want to offer distributors our Para market, for example, and to use our capillarity and logistics to deliver products for a consumer in Para. And this is also an enabler we judge to be very important. Then we have technology, agile organization and data digital culture. Well, we've been working on this since 2018 with quants and changes in technology, trying to explore the 4 quadrants of technology, which is loosely coupled and uses micro services and puts focus on data, not only transactional data, but the customer journey data. We have systems on the cloud we have transferred, and they're assembled and organized based in micro services. We also use an agile team. So technology is close to each of the divisions and units so that we can engage everyone in this digital transformation. So the 4 vectors are very important to support these 2 enablers. And finally, we have our debentures. We'll start participating in the acquisition of start-ups, not only acquisitions, but also we want to understand -- gain a better understanding how this open innovation market can benefit us. So we have made a few acquisitions along there. We'll make a few more. And I am certain that this will bring us innovation and competencies that we lack and that we're going to develop. tech.fit is a clear-cut example of that. You see Bruno. He is full of vitality. He loves to talk about Vitat. We would never have gone into the specialty market if we haven't bought Panvel. We could have but with a very small volume. And for Panvel now leads several of the specialties markets. So we need to open the company for the world. And this is what our debentures is all about. And you'll see a lot of this in this meeting, and you'll be able to speak to the VPs. We are still in the digital world. Maybe in the future, we'll have a more hybrid meeting, but we know that digital is good because it really increases the number of watchers and spectators. So, well, we have also the ESG agenda to talk about. For 100 years, well, the 2 companies have always made moves towards that direction, trying to underscore the value of the brand for society. So in the last 18 months, with the support of Kika and the Sustainability Committee, we established some targets, goals. And when you look at the 35 objectives that Kika showed us, and you start seeing how this influences the targets of each of the division and unit heads, we have some programs, for example, healthier people that also focuses on mental health. We have donated BRL 5 million. Well, it's not only about the donation, but it's important to see the impact on the surrounding communities in 6 different locations. It's wonderful to be able to give conditions to people to become healthier. Because this affects not only inside the walls of the company, but also outside the walls. We want to go beyond the commitments made to the market. We'll now help society, as a whole, to change and to become more diverse, more inclusive and to expand our diversity to the world. We took a sense of diversity. All of this helps us with our gender equality targets, which is 1 of the 35 we talked about. And we're working to make a healthier planet. We have finished our carbon emission inventory. We have targets for 2030, but I think that we'll be able to get to that sooner. Now we have environmentally aware disposal in all of our pharmacies. And next year, we'll have almost 90% of all of our pharmacies powered by renewable energy. So it's wonderful to be able to make this link between strategy, with the backup of our team to make society fairer, better and where we'll have more business opportunities and where everyone can prosper. So this is an agenda that has been really incorporated by all of our executives. And what's even better is that we have made the link with our strategy. So it was just a quick message that I had to share with you. And I'm almost done with my presentation, together with Eugênio. And please talk to us if you have any questions. Eugênio, you're next, and I'll be around. Eugênio, you have the floor.

Thank you, Marcílio. I think that -- well, I think this was a very rich overview. We'll now have Marcello De Zagottis, Commercial & Marketing VP, talking about our customer strategy we have now. We implemented this new agenda. We'll talk about the new pharmacy and the platform and a few enablers.

Good morning, everyone. It's a great pleasure to be here with you. It's really a pity we cannot be together on site, and I will be talking about customer. We talked about the digital strategy, our health strategy. Marcílio has talked about the customer enablers. I'll talk about loyalty and several other important initiatives that are underway. So just to get started, we are leveraging and growing relationship channels with our clients. As you can see to the side, we have our coupons with exclusive offers. They are very important for the business. We have been personalizing and scaling up those coupons. We deliver 20 million coupons like these to our customers every month. It's one of our great strengths that drives both customization and scale. And we have been tapping into digital to enhance our interactions with customers. I think that Marcílio has mentioned the app as an important milestone. We are accelerating the downloads of those apps. There are 2 aspects, both sales and acceleration of the channel, and it's also relationship, too. We now have 14 million downloads of the app historically, and activation of offers now represents 35% of our sales. So as you enhance the relationship via the app and via digital, we see also -- we have some actions on Facebook and e-mail marketing. All of this improves our digital presence. And in a few months, we'll be launching new communication channels with our clients to create new ways of talking to them. For example, they will be able to use the in-store terminals on the counter. The same one that's used by our pharmacists and clerks. So we are really working hard to improve our relationship channels. Something that's also very important to us is get to know your customer. We are obsessed about it, obsessed about learning what is the customer's lifetime value and what are the factors that increase their loyalty towards Droga Raia and Drogasil. So how can we increase this value as well? We have been analyzing the funnel. We have 41 million active customers in our database. But just as important as the size of this database is its qualification. So going after the high-value customers is really key. And also finding out what are the value levers so that we can capitalize on these high-value customers. So here, we see the major segments, beauty, child. So here, we see the size of the base and also their average monthly spend. The average spend of those more strategic profiles, as we call them, is much above RD's average spend. So when you think of the -- really how much each of those segments is worth, you see that it's necessary to use a different type of strategy when acquiring those consumers. In our strategies, including digital, when we consider the rationale behind digitalization, we have some indicators that prove how important it is. For example, with customers that buy in the digital channel, when they start buying on digital, they end up spending 25% more. This is the rationale behind the omnichannel. Once the app is installed in the mobile phone, you expand lifetime value and average spend. So this is one of the main levers. And Univers is another very important lever with an increase in visits to the store once they start using our Uni's benefits, 35% above the comparison. And when you think about the customized offers, for example, digital offers via the app, you see that there is a very important increase in average spend of 20% to 35%. So we're studying the different combinations of customer profiles, what levers drive greatest value and how and when to activate those customers. And to make the wheel turn and to gain more scale and precision, we're changing the way we work in marketing. While we have talked about digital and the work, we have been doing squads, but we are also adopting agile principles in our DNO divisions. So in marketing, we are creating the growth strategy. It means that we'll consider and analyze clients not only based on the transactions and life, but rather on the lifetime value. And we'll have integrated teams working on activation of clients and value conversion. We will introduce agile principles to work on strengths and to optimize our activities continuously, all with the purpose of increasing the customers' lifetime value. We have now 2 squads that are focused exclusively on customer activation, one focusing on customers with low intensity of relationship and that are not identified and another squad focusing on the high-intensity customers. For next year, we'll have 3 more activation squads. And this is how we will materialize this culture of looking to the customer and understanding what drives their satisfaction. Another very important initiative that I think is worth mentioning. Actually, we talked about it last year, is Stix. This is our loyalty program. It's a joint venture with GPA. We have been in operations for 1 year now, and we have some very exciting indicators. Here are some numbers for you, but we are capturing the highest value customers. Here, we see the customers' average. The customer as they register on Stix, they usually spend 2.5x more than just an RD client. And when they start redeeming -- once they start redeeming, they usually spend 4.4x more. Stix customers are much more loyal than the RD average customer. They redeem much more. Some other indicators, just to show you the value of the first year of Stix. We see also more tryouts of catalog. Usually, they are products that the customer has never bought before. This is very important because it also increases the range of products they buy from us. We are also happy to say that we are now able to accelerate the redemptions. I think that the magic moment in any loyalty program is when you redeem your points. And we see customers really engaged in this program. From all of the Univers, the total points we distributed, 67% of them have been already been redeemed. This is way above expectations. So I think that this wheel is turning and driving loyalty. And all of this leads to higher tickets. We still have just a few measurements, but we see an increase of 5% in average among the Stix participating customers. So we're feeling very excited, and there will be a lot more to share with you in the coming months. We'll be announcing some novelties and other things that will really make Stix even more attractive. To give you more flavor on our digital strategy, I will focus firstly on the customer relationship. Marcílio has already talked about this. 14 million downloads of the app. This is really a very impressive number considering it's just 18 months. And during a pandemic, our digital channels have 30 million visits a month. So we have really fleshing out a strong presence in digital, an expansion of 80% and of 750% in relation to the number of clients who buy on the digital channels. And I think that even more interesting is this comparison between the monthly active users in the app and the downloads per month on the other side. It's a comparison with some of our major competitors. And it's interesting to see, our advantage, both in MAU and also in downloads, considering the 2 most important players. We have 2 to 3x more active users, and 7x more downloads. And if we consider the relationship with those players, you see that it's really disproportionate. So we have been very fortunate in leveraging the strength of our brand. Our 2,400 stores, the customer service we provide, with digitalization, we leverage the stores. We're not investing in, Google or Facebook, it's an investment that's much lower than this, and that really explores the capillarity and the strength of our stores. And the results are seen both in downloads and also in the monthly active users numbers. That is one of the portraits of customer engagement. This really demonstrates the strength that we have and how we are attracting customers and how they are helping us have a better relationship with them. All this expansion, digitalizing our customers and helping with our loyalty program, what is the impact ultimately for us? And here, I have some indicators and a very interesting outlook, that the more -- the biggest growth has been driven by loyalty, by customer loyalty. So today, we have an active base of 41 million active customers. Out of those, 10 million customers are what I mentioned before, that their profile is strategic customers as we call them, of high value, high integration engagement. And out of this base, the ones that relate more with us, that uses us most frequently online and off-line, we are growing this base in 20%. That is the growth in the past 12 months. So this way above the RD base. So loyal customers, we are increasing their frequency by 6%. And on top, the revenue of loyal customers is [ expecting ] the past 12 months' performance over 12 months is 30%. The loyal customer in our business has been the main growth driver, also thanks to other strategies like expansion, digitalization. But it's majorly about customer having -- making use of the expansion because there's the app, the brick-and-mortar store close to them. And all of that will be detailed further. So everything that is being done: good customer service at the store, pricing, sourcing, all that enable, help drive actual loyal customers at our base, and that's how we've been growing. And now I'm going to speak -- to close my presentation, I want to share with you 3 recent initiatives. These are important bets. Some are becoming -- turning into reality. Others are now at the beginning. But they are very important when we think of customer loyalty strategy. The first is what we call CUCOHealth. We actually -- we purchased CUCOHealth -- we acquired CUCOHealth because they offer digital patient support program. That means they do patient adherence to the treatment, buying medicine and confident rollover. And the average customer treatment is low. When we look at RD indicators, continued medication is 4 months, and that is a global issue. Half of everybody leave their treatment, so there is a treatment adherence issue. So we're doing a lot of work to expedite treatment adherence because this is a public health issue that has major impacts when we talk about populational health, and it's a major business opportunity. So we bring the entire CUCO expertise, and we connect to what we've created at RD, meaning medication beneficial products. We continue to use medication and we're going to continue with our pharmaceutical services that Raduan will talk more about. So this is an important bet that you will -- shall follow pertaining to health reality when it comes to treatment adherence. The other topic that I think has a bit more track record because it's been 4 years in the making, and this has been a great year is the RD Ads. RD Ads is a strategy to monetize the consumers' knowledge from our database, meaning so that we can get into media business. Our expertise is quite strong as to knowing data sets, knowing what customers buy when, so we have the ability to segment actions, no one else can do it. And by the end, we can actually measure the impact and the return on every action. That is a major competitive advantage at RD Ads. And RD Ads has been growing significantly. So our growth has been BRL 300 million (sic) [ 300% ] in relation to past due to that. It is a product that has a financial materiality result, very relevant result in our business. So it's because it has 300% growth in ads revenue. So more news to come, and we're scaling and taking off RD Ads. So we've got the 1 year of lots of things happening in that way. We're expanding. And here below we show you the advertisers. They can use all of our channels. And we're bringing new channels: through post, our magazines, too. Now we're starting to leverage Vitat. They have a -- the important traffic, important flow, and we're starting to leverage the Vitat channel so that we can do media with our consumers. So we see growth, an important strength in RD Ads-wise that has become material this year, and we are very optimistic looking at 2022. In wrapping, I think my last message, and looking at the commercial perspective, we are expanding a lot, our product range. We spoke about marketplace, Varela will give further details on the point. But last year, I showed you. But now it's even more interesting. When we speak about -- it's actually becoming real. Now we have 60,000 SKUs, new items in our portfolio, and we are currently working in expanding our portfolio in categories that we've already worked on before: OTC, beauty products. And we are including natural therapies, moving body, smart diet, beauty. So now we see with new things, very encouraging to expand our portfolio. And Marcílio will talk more about our company strategy for the next 5 years for integral health. And that is a fundamental aspect, meaning we can't offer 360 degrees health care with only 12,000 SKUs. Now we're at 60,000 SKUs. More will come and will become more relevant when it comes to purchase to -- and offer more and more categories, always in the health care, beauty and well-being universe. Thank you so much. This is it from me. I have -- I'll be happy to address any questions or comments you may have. Back to you.

Thank you, Marcello. Thank you for your presentation because this customer work has been moving quickly. And undoubtedly, it is fundamental for the new pharmacy, but for Vitat and the marketplace. Now still on the topic new pharmacy, I would like to invite Renato Raduan. He's VP of Pharmacy Expansion and Multichannel Operations. He's going to speak about store operations, about the advancements that we have made service-wise because pharmacy is about digital and health care put together. And I think Renato will be able to show the evolvement.

Thank you, Eugênio. Good morning. Welcome. Good morning, everybody. It is a pleasure to join you one year later. And I remember this R&D Day exactly last year. Now like he said, I'm going to focus on the customer experience we want to provide, what we call new pharmacy. Last year, I spent a lot of time trying to explain what the new pharmacy was all about, what was behind the words new pharmacy. Obviously, I'm not going to reexplain this, I'm just going to show you how we've been evolving. But it's worth our while recapping briefly of what we mean when we say new pharmacy. In short, in a nutshell, it's an evolvement, when it comes to experience and proposition value, re-innovate, upgrading and putting together the old pharmacy best and new pharmacy best. So when we started designing our strategy, this is what -- the customer feedback. There was a bit of nostalgia. They actually miss the whole relationship between pharmaceuticals, pharmacists and customers. And this human, close relationship because it's very much based on well-being, on health care, so they actually -- customers actually miss in current pharmacies. But they want this aspect, this humane proximity, old pharmacies of human and specialized contact. They want to rescue this humane aspect they really enjoyed from the old days. But they want to add that to the current experience when it comes to digitalization, convenience. So it's about adding the old and the new, especially the old when it comes to health care-based human experience with the current, modern when it comes to shopping experience convenience. So this is what I presented in the past meeting -- last meeting. And before it was a concept, and now it's become more of a reality because we've been making important headways in the 2 pillars. The first pillar is the pharmacy being a health agent kind of role. He is not just another retailer, regular, commonplace retailer, but rescued the health care agent role in local communities. This year, we evolved, I believe that 2021 -- I'm going to share some figures -- but by far, it was the strongest year for pharmaceutical services in our history, and that helps position ourselves as a health care agent and not so much as a retailer. Obviously, the wind blew in our favor when it comes to COVID tests, for example. Marcílio showed you the figures. So basically, we've done nearly 3 million tests since the beginning of the pandemic. So 3 million active customers went to our store not to purchase something but to get a health service, just like the old days. So this number is very relevant. First and foremost, obviously, we're proud of the service we provided and what we have made for communities and how we could support this population at this point. But also, there is more to it. There is a perception. There is a rescue of the pharmacy being back to a health care agent, belonging to my community and not just a retailer. And I don't mean only COVID tests that is the major leverages of services this year and vaccine. We believe in our role in the vaccinations. It is about preventive health care, vaccination. In all other countries when we see all services provided, vaccine is a major flagship. When we speak of Walgreens, CVS, they actually see vaccine as a major driver of flagship. And most -- and soon will be vaccination site protagonists. If you look at 2019, for example, as soon as it's being cleared by legislation that drugstores could actually apply vaccines, we only had 28 pharmacies with the infrastructure ready to apply and to give vaccines. In 2020, we took another step and 46 rooms ready. And another step, and in 2021, this year, we had 117 pharmacies close to our customers supplying vaccination services like flu shots. And now we have 260 stores with the entire vaccination infrastructure ready and now in the process of being cleared by law to get to another 200 stores. So we get to 2022 with the other exponential growth of pharmaceutical services being provided, especially of vaccines. So as you can see, 7,000, 12,000, 67,000, 2022 we see even more aggressive, bigger numbers to support a flu shot campaign and other vaccines served. And there's the element that no one knows, it's about the private COVID marketplace. Nobody knows if the private market for COVID shots will exist. No one knows. If we can offer in the private market, COVID shots, no one is more ready than we are with 260 stores ready, with all the facilities cleared by the legislation to provide this service. So we've evolved a lot with the 2 flagships there be, the COVID testing and flu shot vaccines. Those are the 2 main most relevant services. But listening from customers' feedback to rescue the community agents, we are actually working on creating a new experience and expand the services that we offer in our community. Before, in the old days, it was 1,500 stores with the one stall, cold and sterile, on the back for injectable applications. Now we want to redefine this room to make it more welcoming, more -- with the facilities more geared to health care service providing. You can see on the right-hand side, the whole retrofits that we've been doing to actually meet these criteria. And we are exponentially increasing the portfolio of our services that we can offer through 1,500 pharmaceuticals, with pharmaceutical services currently have a room. They're going to be retrofit, and they will be able to offer services. And more services, meaning more comprehensive services in a -- so it's more ample service providing, like you can see on the slide. And we'll have tests and vaccination taking place here. Now to do lab remote testing, we need larger facilities. The infrastructure investment in equipment is bigger in refrigerators, et cetera. So now we have 20 pharmacies with this entire infrastructure. So if I have 2 or 3 in a -- in the 1 neighborhood that apply vaccines, that is not as recurrent. People take the 1 vaccine per year or 2 vaccines per year so we think it's enough. But glycemic blood pressure and other tests and lab can actually take place. And we want these services for blood glucose measurement, pressure measurement, bioimpedance, et cetera. Now to increase the rescue of old pharmacy, it's not just about service providing, it is one of the rescue elements that we have in our customers' imagination with a nostalgic feel the old pharmacy. But beyond that, they want the presence, a relationship with a pharmacist that is more of a protagonist. When they remember, Mr. This, Mr. The Other, they remember people's names, who the pharmacist was, who was the person in their neighborhood that saw his father, her mother, who would measure their blood pressure. So you see it's not just about providing services. But in their daily lives, in all service providing, the pharmacists become more relevant, have a protagonism. So the conversation is more about health care offering, not about product and price, so that the relationship is stricken, and we have a long-lasting bond. So as you can see, as more pharmacists spend approximately 3 years in every pharmacy. So the idea is to keep them for longer. And they end up leaving because they're promoted or they're transferred to another store. So actually, working on having means to keep pharmacists in their own communities so they can actually form stronger bonds, long-lasting bonds. And now systematically, in our entire network, it's being very well evaluated, the pharmacists, we have been measuring this. As they see customers with a pain or acute condition or anything or that they have just been diagnosed with a chronic condition like diabetes or hypertension, and pharmacists realize, they actually offer to make a phone call. And the phone calls are follow-up phone calls in the next days just to check if everything is well so they can provide some guidance. This was launched in September. And in 1.5 months, basically, we've made over 100,000 follow-up calls to customers who decided to -- who opted in to get this kind of follow-up by pharmacists. This is gesture of health care. And it's not a bot calling customers nor it is a central with an unknown person, a random person calling. It's that person that you saw at the store in -- face-to-face. That person will call you 3 days later to check on you. So that took -- that has extraordinary strength. So beyond the pharmaceutical services, to re-signify the role and the protagonism of pharmacists in people's everyday life and keep on creating this closeness, this relationship with customers like we had in the old days. So this is one of the roles of pharmacists, to rescue health care providers' roles and the pharmacist role from the old days. Now we've covered what we do best now in modern days, what brought us here, the experience where all our stores on corners offer parking and all that with brick-and-mortar and improved also customer service online for online shopping. So I brought this to you in other circumstances. But now speaking about the off-line world, as in when customers actually get to stores, we -- our satisfaction score is at very high levels, very well-rated. I've brought this before. This is a Net Promotion Score (sic) [ Net Promoter Score ] we call. It's NPS or NSS. The question is how do you rate our service. And we bring -- everybody voted 5 or 1, 2, 3 so that we get to these levels. So we see numbers going up. It's one of the main factors and one of the drivers for the success that we have had recently, and we reached 88.5%. And from now onwards, it's going to be harder to grow because the 88.5%, we have approximately 92% of our customers who vote and rate 5, but we have approximately 5% who vote 4 and 3% that vote 1, 2, 3. And as we see now, 92 minus 3, these are the numbers. From here onwards, we can't keep this curve accelerating, but it's always close to 90%, it's a major victory, and a message from our customer conveying to us that he is incredibly happy with the experience he has. Still, in spite of being happy, it is still an obsession by us for every pharmacy, for every community to give the next step: training our teams and pursuing and finding the best team, people who make a difference in the team insights and improving processes to help this service providing. We've been working for some time in improving counter procedures. So we have a frictionless service with digital prescription, a number of initiatives to make all procedures more agile. One of the major complains we hear in our pharmacies and other competitors too when we do customer survey, there are some services that would take way too long. They just want to quickly buy the 1 product and in and out. But if it's a controlled product, it takes way too long with the system. So we're trying to gain efficiency that way. We're going to keep on working to create a new self-service terminal. I think it's going to -- we want to somehow help and rebuild a terminal kind of service to help. A more personal and agile, simple example. For example, sometimes you have a client or a customer that uses Crestor, for example, anticholesterol drug. So if somebody has asked me 2 or 3 times, "Okay, you can sign up for this product." If I said I don't want to sign for it, then the next time I visit, I don't want or the clerk shouldn't have to ask me that. But if I have -- even if I have given this information often, they keep on asking this question for convenience. And so we're trying to rebuild our service terminals like this. We will have the most relevant questions being shown, and so that we can eliminate the repetitive questions that are needless. And so we have been maintaining our high satisfaction scores, and we're still doing our best to improve the back-office service and also training for our staff. Well, numbers tell the truth. We wouldn't have had this exponential growth unless experience was improving. We have some tailwinds, COVID is one of them when we consider the start of the pandemic with a level of BRL 240 million and 7% of the sales. So yes, the pandemic did help, but we were able to provide service. After that, the pandemic didn't cause the effect from the second quarter to the -- second quarter last year to the second quarter this year. So this is, in fact, a sign of how the experience is improving and how customers are using those services more. The app has been our rising star and our bet and, in fact, our triumph. To have the app installed in their mobiles is something that creates a stronger bond with our customers. It's different than competing on Google with other competitors. So the app had 50% growth of all orders. 50% are originated by the app. And besides the orders, it's used for exclusive offers, to check on the Stix points. So this is our major bet. We have been successful so far in directing our customers to the app. And our pharmacies and clerks are now also promoting this strategy. 14 million downloads, 80% of download apps take place at the pharmacies with the support and encouragement of our clerks. They supported the customers and they tell them and explain how to log in and download the app. Besides that, our base of 2,400 pharmacies, they are our competitive edge. Without them, we wouldn't have built such an important digital operation without a well-known, reputable brand, without our customer base of 40 million people. And with inventories close to our customers, we would never be as relevant as we are today. So when we consider the stores that originate ship-from-store services, so all of the stores support digitalization because, in any of them, you can buy online and click and collect. From the 2,400, we have 700 pharmacies that are still used as a dispatch point where shipments are made from the store, especially when it's the closest point of inventory in relation to the delivery address. So when you consider, for example, Rappi and other delivery apps, 80% of the products shipped come from our pharmacies. And finally, just to finish, this is an indicator that we'll be showing you more and more. This is something that was unique in 2019. Our pharmacies were at 5 minutes of the population. And today, we have 27% of the population at 5 minutes from one of our pharmacies and more, 44% of our population at 3 kilometers. And this is really unique. It's not a platform. It's -- well, you can all try to build something a little better or a little worse. But having this client -- this customer base and having inventory that is close to 44% of the population, this is really a key driver of our omnichannel strategy and success. I'm not going to show you the numbers, I just wanted to remind you how our digital business has grown based on this base of 2,400 pharmacies that are very close to the population. It's all for today. Eugênio, I hope to see you next year again.

I hope to see you, too. I think Raduan has made it very clear how much capillarity is fundamental for digital. The store is the center for our customer acquisition. It's the shipment origin of many deliveries. And to continue, I would like to invite now Fernando Varela, our Digital VP, to speak about the marketplace. This is the first year of the marketplace. We have recently gone live with it. And Varela, please give us some color on the plans.

Okay. Let's talk about the marketplace. I'm very happy to be here once again for another year. This is an operation, an MVP operation, that started exactly 1 year ago. We have 60,000 SKUs. Many more than on the stores, 230 sellers in operation. We have a website, app, Drogasil. And the website, Drogasil, will be launched after Black Friday. We have several existing categories such as personal care, drugs and beauty. So we have, for example, also L.O.V.S. and some other products. For example, to understand customized health, we are now working on several verticals within this marketplace with 3P products. And this, we have from chamomile tea to wheelchairs being sold in the marketplace. But for us, the benefits go beyond that. For example, during the pandemic, we realized that there was a breakage of some products, for example, oximeters. And the marketplace was able to close this gap. Another advantage of the marketplace is the sale of products in association with services. What we weren't able to do before were offering or doing assortment tests with low risk, being able to use the long-tail offerings in some of the existing categories such as collagen. So the benefits go beyond our expectations and show that we have to offer a complete health portfolio to our customers. Some of the examples we have moved into, orthopedics, [indiscernible], Kutiz. So we're working in a different way than in the past. So what is the most important strategy? We want to be the one-stop shop for well-being and health for our customers and sellers. And we look at customers, they're at the center of everything, but the seller is seen as a second type of customer that we have to cater to the needs of, so we have operating efficiency front, expansion of channels and platforms and also GMV increase. What is operating efficiency? We want to offer this one-stop shop with the utmost efficiency for both customers and sellers. We need integration, so can we really ride this wave. And we want to increase GMV growth as well, increasing share. So as we analyze those pillars, there are some levers that we can use. For example, we have operational efficiency, operational management of sellers, financial management. We can also build a seller center, of which I will speak more. In increasing GMV, what are the levers for that? How can I activate the sellers? How can I enhance my competitiveness, how to expand my portfolio, how to make the app more engaging and driving more sales? And finally, we can talk about RD Services. Marcello has touched on this, the RD Ads. But I'll talk about our RD FIN and RD LOG, financial services and solutions that are offered to our sellers. So the seller becomes a customer that we need to attract, engage and relate to, as I said. The levers can be transformed into a digital funnel. And we can analyze the company and work based on attracting, engaging and relating. This is valid both for customers, the end customers and for sellers. They become a special type of customer. And the value levers are used to drive the growth of our marketplace. I also wanted to highlight a project that I think very important, which is the seller center project that we have been developing. What is the seller center? This is where the seller maintains our relationship -- the relationship with us, for example, stock, product, price entry. They also see the financial cycle, payables and receivables. They also manage their operations in our marketplace. So the seller center is really important because it touches all points of the digital funnel. It attracts, it engages and also retains the sellers. So this is one of our focuses for 2022 in the marketplace. Besides that, how are we going to market the RD Services? RD Services are services dedicated to the seller. So information needs to be provided. We almost offer media and ads. We offer data. How did the seller perform in the marketplace, what does the conversion funnel for the seller look like? In terms of financial services, we could also offer them some credit lines. We could become actually an acquiring company. This is something we're thinking about. And we will give a lot of focus as well to RD LOG, using our logistics network, our internal distributor, operating with our 2,400 stores, to reduce delivery costs and time for our sellers. And there are several possible combinations using RD LOG, for example, the seller can make the deliveries in our DC, and the DC delivers to the stores or the store makes the deliveries or you have click and collect at the store. Or we can go and get the products at the seller's with a smaller structure. There are several combinations possible from the simplest to the most complex. But of course, we want to cater always to the needs of both sides of the spectrum, both consumers and sellers. So going back to the long-term profile, the extended view, we have now deliveries in which the seller makes the deliveries. In the second phase, we want to onboard a massive number of sellers to drive growth in the marketplace. Then we'll have catalogs because we want the stores to participate. We'll have 50,000 people serving people, caring for their health. They think health -- when consumers think health, they should think of Droga Raia or Drogasil. Or for example, if they have an arm with a problem or something or they have a headache, we need to cater to their every needs. So the participation of the stores is key in this process. We want to encourage. We want to expand this. I am certain that the stores will be the first ones to use this product because they want to offer the full range of products to customers. So it's going to be key for next year. And another important point that we'll have on Phase 2 is the advancement of logistics. With more maturity, we want to step up RD LOG with fulfillment and cross-deliveries, using the seller store space and also thinking of regional marketing. So when we think of the extended view, this is what we want in terms of projects. It's a very challenging scenario but also it will make a great contribution to the company. So now I'll hand it over to Bruno Pipponzi. He will talk about the health platforms, and I will be back to speak about digital in a while -- in a little while.

Thank you. Thank you, Varela. Good morning, everybody. Good morning to everybody who's watching. It's always a pleasure to be back. Last year, I had the opportunity -- for the first time, I had the opportunity to share about the platform, the health platform. And I think this is the time to get back to this and dive deeper and speak about the progress that we have made in the past 12 months and how we've been preparing to put this platform up and running and embedded in RD's strategy. Now to begin, it's always good to get back to the concept really that we explored quite a lot last year. So our health platform is actually an expansion of our value proposition. As you can see, we are about a platform that connects a new pharmacist, the pharmacy that is being well presented. So the health platform is about aiming to deliver health care solution with service providing that connects to the market -- to this value proposition to transform care and the way we relate to our customers. We always have highlighted this point about strategy, with being customer-centric and with health care journeys that can be supported by the platform. So the view is of our platform, that by relating to customers and bringing integral health care providing, includes content, product and services to truly deliver new solutions. So this is a very conceptual view. We discussed this deeply last year. And since then, we've evolved. Before we actually get into products, I think it is important to understand how this has evolved in the practical aspect, in every day of the running of the company. The project has been happening since the beginning of 2020. And since the first semester, it was an RD internal project. It was an area within RD. And we had a small group of professionals that were getting involved in the strategy. So it was a very intrinsic kind of project connected to the RD as everyday life. From the second semester on, it took life. We structured a more robust team to make the platform happen. And the team slowly, gradually took autonomy. There was self-agency when it came to the R&D operation and he got together to one of the start-ups that we acquired, tech.fit, that Marcílio spoke at length about and the merger, tech.fit with RD Health, so -- at a more autonomous level, created a new organization. So it's a spinoff of a new company that was created in the group. And in the second -- and Vitat in Q2 2021. So it is my pleasure to officially -- it's a pleasure at Investor Day to introduce this new group of people, this new spinoff within RD global strategy, engaged in building the health care platform with this new concept and new brand. And since we've released, we did the launch in June 30, we did Vitat internally. Then we started get things rolling, releasing and trying to have the projects on the ground, interacting with customers. And then Q3 and Q4, the project got stronger. And Vitat is now even more evident to customers in stores. Now to introduce Vitat and give you a more concrete view, I would like to play the video. It's a 2-minute video to tell us -- to tell you a little bit what Vitat is all about from the customer point of view and what we want to introduce to the world. [Presentation]

So there you go. We launched Vitat on the 30th or June 30. And this is the video that shares a little bit of the story. And here on the screen for you, we have the main message by Vitat. We introduced Vitat as a brick-and-mortar and digital network that connects people and services and products to enhance health care providing and transform your health into a daily experience. So like I said in the beginning, what is Vitat, the concept of -- the platform concept? This is the translation. It's a more practical -- in a nutshell, it's more about addressing everyday challenges that people face to keep up their health, nutrition, exercise, sleep. And so it is to follow up specifics, and it connects the off-line and the online. The off-line and online, we speak a lot about omnichannel. So we speak about real integration and digital health care solutions is to integrate services and products in the off-line and online with no distinction. And the delivery has to be omni, so that we can indeed meet the demands of the customer at all points, so be together in all touch points. So you can see the facilities at the bottom of the screen with -- they're called Vitat Spaces. And in the upper part of our slide, we have the portal and app. And with a lot of content creation, we've been creating podcasts that speak about healthy living so that it becomes part of a health care strategy. Now another detail, now let's dive deeper then. When we speak about the components and the platform structure, I think here, we have a very clear objective view. Marcílio, in the beginning of our conversation, spoke about this, but here is diving a little bit deeper. The Vitat platform, this is how it's framed. We have -- it's threefold mainly. The bottom, you have the 4 pillars that we call them fundamental product and service delivery part of this entire ecosystem. The first is the product marketplace. Varela spoke about the marketplace. We're speaking about 60,000 SKUs. More and more will see this marketplace growing with new portfolio, with new categories that is part of the whole well-being, health care journey. Then we have the services marketplace. For 1 year now, we've evolved a lot. And this service marketplace is composed of a very ample network of pharmacies that are growing their business. So we're speaking of 20 Vitat Spaces, 350 Your Health spaces, 1,190 Services Spaces and lab -- and medical offices, with partners now connecting to our ecosystem. So this is the one arm where we bring services off-line, part of an ecosystem that is also -- that is brick-and-mortar, connected to the online. Then we talk about telehealth with 4 specialties because when I speak of telehealth, it's about teleservice providing. So it's remote contact with health care providers. They can be physicians, clinicians and nonclinicians like psychologists and nutritionists. So we want to connect them remotely too. And then we speak about the fourth pillar. These are well-being and care programs, addressing the self-care programs, everything related, nutrition, sleep, exercise, mental health and prevention. So we have over 150 programs embedded in our platform with several product distribution. So after the platform layer, we go to the app layer because the platform underpins an app base that can be modeled and developed independently. But all of them are supported and underpinned by the platform. So we've got 4 apps. Three more profound apps, I'll tell you more about. And the one, Vitat app. Vitat is about integral health that is also the one that actually takes the name of the platform and whose job is a bit more comprehensive. Then we have the growth channel that is the third layer of this platform. And here, we create the concept of healthy living through content channel. By Vitat, we can actually address everyday issues from the content point of view because people engage on healthy living through content generated. So this is a strategy. In reality, the growth channels are the ones that generate the entire alignment and demand to apps that connect to platforms, offering products and services. So this entire -- there's 3 layers working together. The whole mechanics is essential structure framework of our Vitat platform. Here, I'm going to get into more details as to the point of all our frameworks. So we have the service marketplace, the pharmacists. We're also going to talk about the programs. And then I'm going to close speaking about the apps, so you can better understand what each one is all about. Now moving on to service marketplace when we speak about pharmacists because I'd say our core strategy is very much pinned on this close relationship with customers like Renato was talking about. Today, we look at our health care hubs in 3 main block or clusters. The first is the Vitat Spaces. Vitat Spaces are pharmacies where the Vitat concept is materialized, with the service-providing space integrated to pharmacy product selling -- retailing. So they are ample, more complete space, service-wise, and have an integration level that is quite high with all programs and solutions that we bring in the platform. So they are spaces -- I have the service menu on the left-hand side. So you have health programs, health guidance, body -- and blood pressure control, diabetes control, injectables and insulin injections. So there is a very integrated logic with all other services that we offer in the platform today. And then the second group, 350 units by the end of the year, which is called Your Health. I don't need to talk much about it because it's been presented before. But this is -- are pharmacies that have been rebranded. So they're under a new concept, more health kind of concept. We developed the team that -- we trained the team to do so. And now these rebranded pharmacies have very robust services. And somehow, they are now integrated and part of the health care platform. This integration level will grow. And by the end of year, the 350 units will be fully integrated. Then we have the third hub with 1,190 units that provide pharmaceutical services that will be about your health. These are more simple services. As you can see on the screen, you see the room. It's a simpler room with simpler facilities, but 180 stores that bring pharmaceutical services such as vaccines; and 1,010 stores where we have injectables and COVID tests. So this is our health hubs today. So these are the components. They should evolve a lot in the next few months, and they will connect to the health -- to the Vitat platform. Important to understand that it will work as an ERP, meaning it's going to connect in our entire service network. So besides of having centralized management and operation pipe, you'll be able to have scheduling not only integrated with these pharmacies but also with the platform. The 1 health record that takes all data and integrates into 1 database support the pharmacists. These store systems will develop features to support the work of pharmacists in customer service. We'll also integrate CRM channels to expand the relationship of that service providing. And that's where all the connection of the pharmacy service will take place, connected with all other stakeholders in the ecosystem. So you'll be able to schedule teleconsultation, schedule lab exams and all other services and programs that are part of our platform. So this format really matters because very soon, this will all be integrated in the Vitat platform. Now the other part that I want to get into details is about the programs and care paths because we usually say that Vitat value offer is very much about product, services and programs. Programs address specific topics for people and pain points for people. So we have programs about mental health, movement, nutrition, sleep and preventive care. So here, we have here examples that everybody can see. So we have programs like sleep checkup, programs for COVID specifically, programs for emotional balance and especially for people who have chronic conditions like high blood pressure. And here, we have examples of how it actually becomes true in real life. For every program you download, you have daily content of product and services. So this is the example of the one of the exercise programs where we bring daily training so users can make use of. Plus we connect product and services in this program according to the journey. So here we have the one example of e-health, telemedicine taking place, so that the training program can be set up offered by the program. So you see, this is an example. And more and more, we'll be investing in these programs. Today, 150 programs in all the fronts I was speaking of, and these programs are built by partners, by partner companies, by start-ups that are that experts in these verticals and bring value to customers. Now to close, let's speak about the app portfolio. So these are the apps that are supported by the -- in the Vitat platform. Today, we speak of 4 apps. Maybe down the line, we may develop other apps on other topics. That will all depend on experience and see how we learn this whole process. Now thinking about a starting point, we have 4 deep, what we call, deep apps. One is about healthy eating, nutrition. These are apps that are well-rated with diet and health with 430,000 (sic) [ 430 million ] downloads. So 50,000 active users and 3,300 subscription programs. Tecnonutri is another healthy eating program, nearly 2 million downloads, monthly active users, 275,000, with active subscription at 55,000. And Workout is the other app that is more focused on workout programs really. And this app is newer. It has 47,000 downloads with 6,000 active users and active subscription at 500. So these are our deep-dive apps. And more ample, crossing all areas, we have the integral health app, Vitat. Vitat will direct weight loss programs and workout programs and will refer customers to other programs once it detects more specific interest, like nutrition. So this is the purpose. It has 110,000 downloads, 92 (sic) [ 92,000 ] active users. We're nearly close to 100,000 active users. It's still very new but, at this point, being experimented and being assessed as a solution that connects programs, services and products to deliver these integrated models. So this is the overview of our apps. And here, in closing, I have for you a little bit of our view as -- it is a time line, really, of what we intend for the next months, years to evolve this entire strategy. Like I said in the beginning, the difference at Vitat launched between June and July. From this launch, from this release, we've been accelerating continuously in our app because we're still running several tests to understand exactly what the solutions that fit better for scalability. Now we're at a phase that we can actually start up. I'm actually validating products. So the whole platform today, it is an ample, comprehensive ecosystem that enable us to test a bunch of solutions using an ample network of pharmacies. So we have 20 hubs, very soon 350 units to serve as a lab for all this. And our expectation is that, as of next year, at some point, first or second quarter, we will drive these according to validated solutions. So thinking about 2020, objective was to accelerate Vitat products with others that have more robust figures and integrate our entire pharmacy network and health hubs in the platform. So by the end of the year, we will get to 50 health hubs. By this year, we will finish with 20. Next year, 50. And we will have all network stores offering services, all connected to the platform with the RD Health. So this is our overview. This is what I wanted to share with you now. And let's get Varela back onstage. He will talk to you about technology.

Okay. Let's go. I'll start my presentation with a question. What's the meaning of digital transformation? What is its impact for the organization? Well, very clearly -- well, digital transformation is putting the customer in the center of everything. And it's also about understanding the customer service, the customer journey. We can have a team or a squad or a group and we need to organize it in such a way that we live the customer journey 24/7. For a squad, we need, first of all, a vision of the digital product, we need to work in an agile environment. We're then empowered to create. We need a design-thinking perspective, CX, CI and UX. We also need a decentralized IT organization and high volumes of data, telemetrics, real-time data, high volume of data. For that, you need the support of the cloud to get scalability, thinking of variable cost rather than fixed costs. You should use micro services as if they were Lego pieces. And this is what will help you imprint some speed in your operations. So customer-centricity, teams or squads, agile, design thinking and technology as the backbone. So when we take this concept of digital transformation as applied to RD, we did this 3 years ago. We opened several new projects in the organization. So we launched our digital business 3 years ago. I think that -- in this group, I think the average age is around 26 years old. So they are real digital natives working on this journey. Then we worked on the data. We set up a data lake on the cloud. We transferred the data there. The data analytics division was born during the pandemic. And today, we have 52 people, both data scientists and data engineers, and we want to double the size of this team with a vision on unique customer vision. Fail fast is also one of the principles, use cases based on smart algorithms. So from the technology point of view, it was a complete turnaround. We are now working with digital natives. We have expanded our team. And today, we work on 2 major projects that I would like to show to you, micro services and our -- we are rewriting all the systems that are customer-related. It's very complex. You have to rewrite all of those processes and services in a digital format with a different way of thinking of digital without having the store suffer. It's just like changing your tire while the car is running. Now we have half of those projects also on the cloud. It's a new configuration with new parameters. So there's a level of complexity that's inherent to micro services projects. We hope to achieve at least 60% of our objectives with faster validation in our environments, faster go-live and also in our automated tests. So we have worked very hard in the last 2 years to lay out the foundation for this digital transformation and IT. So it's very important to underscore this to you. And how can you measure? Because it's a different type of measurement when we think of digital today. I think that the most important metrics are how many tasks do we have? How often do we do it? What is -- what are the failures? If there were failures, how fast did we resolve those issues? So those are very important metrics: time of delivery, failure and changes, availability and the like. And when we talk about data, data is the thread leading the transformation. We have set up a smart algorithm to have a unique view of the customer. We are still complementing this initiative in some areas. We have advanced in the data lake. 60% of our data is now on the cloud, a major improvement. And finally, what about information democratization? How can you make sure that the team has access to this information, especially now that you have 60% of your data on the cloud? What we are observing now is that our people are using more information to fail fast. And we have use cases, use cases with smart algorithms for store cannibalization. Price elasticity is another project that we're working on right now and seller evaluation. I was talking about the sellers, and it's really useful to use smart algorithms to compare your sellers in terms of time of delivery, reliability. It's a constant, ongoing evaluation and assessment of sellers that you can put in place. We want to achieve high-scale customization. We have started working on this with the segmentation of the hubs, with tagging. It's very important for you to have a stamp on each of these events so that you can understand the conversion funnel that Marcílio has shown us with this unique view of the customer. And what's the secret sauce? What's the architecture that is putting this together? I think that the keyword here and the banner for 2021, indeed, analytics is this. You have to create a customer platform at a very large scale. We have the CDP, as we call it. It's a customer platform that can be quickly customized. As soon as he walks or she walks into the store, you can send a customized offer and that this is not easy when you're talking about millions of customers. And it's also important to make the distinction between digital and physical events. So we are now working -- we're partnering with a consulting firm to develop this ability. Now moving on to the lower part of the chart. We set up this team, the N2D team in 2019. It has become an incubator of journeys for the company. So we have squads that work with loyalty and well-being and other areas. We have now 36 squads. This is how the marketplace came to life, and we'll have probably 44 squads by the end of 2021, making progress in agile product design, always with data and technology as our drivers for growth. Let me highlight another very important point. When you work with squads, what's the relationship of the growth of the company and the customer journey? There should be a connection. External stakeholders should be seen as investors in those squads. They are almost as angel investors for this start-up. So the value stream concept, the concept of the investor and the squad members should be driven by a spirit of entrepreneurship. So we have the -- this person in the squad. He's not a manager. He is a product developer. So the value stream concept is something that we have developed this year together with our partners, and we really want to create a shift in mindset because it's essential for our digital transformation. We have countless objectives. It's a technical bottleneck, first of all, because we have to break down the company services into smaller components. It requires a change in software architecture. So there is a huge involvement in change management. Before, we had systems analysts. Now they have become DevOps. They have to think of development and sustaining the business. They are now part of the squads with a much broader job description, but we need the support of developers. So there is a technical bottleneck associated with this. It's difficult to create tracks. And I think that the keyword for '22 is productivity. With everything I've talked about with all of those deliveries, foundational deliveries, we'll see a higher number of deliveries being measured by the 4 metrics I was referring to. Developments in people management, how can we attract people? How can we change our recruitment procedures? This is a challenge we have discussed for many years. Susana will talk a little bit about it next. We also have the company culture challenges, the digital mindset, the dev mindset, change management, thinking as entrepreneurs. The IT turnaround today, 50% of our team members are digital natives. Others are becoming digital natives. So there is some inertia to overcome. We should have a unique customer view in the company as a whole. And finally, how can we get the job done without forgetting some of the threats we face today? We have cybercrime to think about. We have a strong team to fight those threats. And finally, how can our dev ventures help us increase the pace either through partnerships, M&As or with the support to a small start-ups? It's important to think together and to look for solutions together. So it's important to team up with our dev ventures to promote the digital transformation process in the organization. Thank you very much, Eugênio.

Thank you.

Thank you, and I hope to see you next year.

No, even before that, Varela. Don't worry. Well, the Investor Day, the showcase of everything we have done in the previous year, but great presentation. Thank you so much. I think it shows how complex it is to implement digital transformation. It's much -- it's easier said than done, as we know. So we cannot be arrogant and say that we have completed it. But I think that we are actually moving in the right direction. And to talk more about this transformation, the cultural transformation, let's hear it from Maria Susana, our VP, People, Culture and Sustainability. In this scenario of so many changes, people are fundamental. Unless we have a very engaged and aligned culture, we won't make it happen. So let's have it from Susana.

Thank you very much. It's great to be here on this RD Day. I will continue this discussion. And I hope to give you my contribution on how we view our people and how we can also evolve our culture. And Varela has given you a preview, a little preview of what I'll be talking about. I think that Marcílio has touched on these points together with Kika and my colleagues. RD uses a very complex and ambitious strategy with many interconnections. It's a transformation that occurs in 3 dimensions. So let's go back to what we said this morning. We need an important change in the codes of business. We will focus now on health care. We also have the marketplace for health projects. It's a very important strategy but on a digital means. So naturally, digital transformation is what will keep this project growing. And finally, we want to promote health through health platforms. It's the integral health. We want healthier employees and healthier customers. So we are strategic enablers in the area of people, and we also promote the evolution of our culture. We all know that it's not easy to make complex transformations in a complex organization, especially in a world with so many fast-paced changes. I'm referring here to COVID crisis that's now 2 years in the making, and people management has been tested and tried during this time. Vulnerability rose to the top of the agenda because emotions were running wild. And emotional health gained a different importance. People were working from home in an improvised way, having to deal with family crisis from improvised offices. And the world is becoming more authentic. People are more genuinely expressing their emotions and thoughts. And if you work for organization, you try to meet those new [ demands ]. And especially when you look to the pandemic that we're now leaving behind, thankfully, you can see that the transformation that requires -- the digital transformation requires a new skill set. In an ambidextrous company like ours, we have a legacy of almost 2,500 pharmacies that fulfill our value proposition on a daily basis. And at the same time, we need to build an environment that is attractive, warm and welcoming for those who can drive our digital transformation. So as I said, we need competencies, new skill sets, and we need to train our employees in such a way that we can reskill and upskill our workforce, which is one of the hot topics consulting firms always talk about. So with this perspective, it would be only natural that we stopped for a moment to look within. It's impossible to deliver such a complex and different strategy. We just couldn't keep with business as usual as before. So first of all, we reflected upon our own area. We redesigned people management, and this is how we set up the corporate agility hub. Before, it was part of N2D, as Varela might have mentioned, which is our digital business area, and then was expanded into RD as a whole. And we are now implementing the agile methodology all over the organization. And all of the VP offices now have initiatives in that sense. And of course, here, I'm speaking more of the C-level and of the different components in our corporate structure. We started thinking not in silos. We didn't want to think on -- in boxes anymore. We looked at the different business dimensions, the areas that can capture value in operations, the areas that create value, including agile digital and the health platforms and other areas that make valuable available, including our back office. And we needed to make a few choices as well. It was a very intensive program of changes. We decided to focus on the strengthening of N1 and N2. Here, I'm referring to the heads of departments and N2, all of our executive staff. This is a journey. They are not short-term initiatives that they're at least medium to long term. And this is how we started to strengthen and to foster a favorable environment for digital transformation. Now I want to share how we address the N1 and N2 issues. I think in the past 3 years, we've been investing a lot on our human assets, bringing -- finding the perfect blending. And what we have found is that, in fact, we've expanded our investment in people as we bring executives with different backgrounds and different profiles than what we have before so we can expand our strengths. We also -- part of -- we were also part of all assessments, all executives and VPs finding a full agenda -- a full development agenda to increase our capacities so we are better prepared for the long-term deliveries. And I think the result is basically natural really. It is the strengthening of our pipeline -- of talent pipeline, pursuing a prosperous future for R&D. The other choice is how we create this environment, this favorable, enabling environment for digital talent, everybody who is so desired by the markets, by the industry. So it is a privilege of ours to find new ways to appeal to these people and retain and bring them loyal to our purpose and our value proposition. And we've been investing a lot on corporate education. We created at our RD University the Digital Agile Academy. And at Digital Agile Academy, we address the development and hiring people, entering people to be trained plus our executive development with most important business school. We just actually finished graduating in 2 groups. So this is what we're talking about. We have revisited all our capturing, retaining and incentive processes. And our onboarding is very different because people have come with different expectations. And this entire language is being adjudicated through good partnerships with several partners and stakeholders that help us to navigate in this new environment, new for everybody. With all that, what we begin to conclude is that the brand is now more appealing in a different way. And you were speaking about the 5 RD employee brand. It goes through culture strengthening and leadership of thinking and interesting media, spontaneous media with public opinion that we know we will always be object to them. There will be object of media and public scrutiny, always update and looking to the future with spontaneous media and public opinion, attraction and retention of digital talent. How can we materialize that? Internal communication has a voice. Meaning it has a dome that engages people differently. We have several initiatives to foster and strengthen our culture in very open and democratic actions like our round table talk, open talk with -- about sustainability and friends of RD. And Marcílio, every time we announce a live, he is always there, present and very much of a presence, always being very engaged. All executives are appearing differently in -- growing in professional medias like LinkedIn, which is about feeding your soul, for example. So what we're trying to position in this public environment is translating RD, speaking about initiatives, but in a very colloquial, very friendly manner. And RD has always been very low profile and now is beginning to occupy this different space with the media, adding some important mediums to generate engagement and reposition us as a brand. So I'm going to -- I'm really close, Eugênio. Speaking of culture, so what we want is to preserve our soul and our purpose, fully protect it. So we understand that our purposes is comprehensive, is specific, is modern, and it's engaging enough to invite our teams to join us in this journey. The culture is the way we do things. It evolves and evolves daily and evolves greatly so at this transformation moment. That's why we'll pursue partners who really speak our language, who really go to the same sources that we go for RD, and we are in full implementation. And I believe that if you ask me, if we were here speaking, if we had this presentation with a live audience and you asked me what inspired us, it's not just about digital talent. It's other -- it's more than this. It's everything that has been shown should prove that. What we need to keep faith and loyal to and keep building is an organization that has a meaning and offering relevant experience to our nearly 100 -- to our nearly 50,000 employees. They are at the pharmacies. They are in distribution centers. There are [ several shop ]. They are in our headquarters, they're at home, meaning they're experiencing several different scenarios and we want to be relevant to all of them. We want to resignify this, and we wanted this purpose to speak deep and connected with what we're building together. Eugênio, this is it for me. Thank you so much.

Thank you, Susana. I think your presentation was very rich, very interesting. And it makes it -- and you made very clear how much the world has changed. It's not about the company choosing their employees. Actually, employees are choosing where the organizations they work for. And we have a lot of assets for that. We engage where people are happy. They're working towards a purpose. RD is not to sell things. It's to look after people's health. And I think that echoes with everybody, and that's what we've been bringing and that is enhancing and growing our company. Now I'm going to move on to our last presentation. That is about speaking -- and speaking about a recap of our market view of things that have been shown and also share a little bit of what we expect for next year. So the first thing is to remember that we are in a very privileged industry. Our industry is very fragmented. We have a small share. The old networks have -- even when combined, have a small share, but the growth rates are very expressive, always above inflation. And this is real in growth, as explained by the rapid population aging. If you look on the graph, it shows that this decade and the past decade are the sweet spots of this transformation process, with 4% of aging population growth rate. And RD is more than ready to keep leading this consolidation in the marketplace in this industry. We're going to finish the year, like she said, being present in all states of the country. We are reaching 450 municipalities in Brazil. And we will still have a low share even in Sao Paulo, where it's nearly 26%. We still think there's much to grow. And more in other market share is even lower than this. So growth opportunities are there, ready. And the other major differential in RD is that we grow in a blue ocean, meaning we have a brand position in all markets. There is no penetration barriers. And that's why we look at how we perform market by market. So here are all the states where we are present for at least 1 year. Actually, going to correct Marcílio another set. We don't sell close to Sao Paulo. The few states that are below Sao Paulo are close to Sao Paulo. But the most states in Brazil, we sell way above what we do in Sao Paulo. So we can sell. Add the competitions' territory more than they do and we profit more than they do. So our state with the least amount of sales is still above BRL 750,000 per mature store. In all the states, we have EBITDA and mature at above BRL 90,000, the exception of the one state in the Northeast due to tax reasons. So it shows the expansion strength, and it will be amplified. Last year -- last month, we communicated new guidance. We opened 260 new stores, keeping the 240 originally promised. So 260 new, and we're going to keep with expansion of the main diversification of portfolio that we've been doing, meaning end market expansion grow over the country and with a lot of focus on hybrid stores and popular stores that place us in lower-income populations. Speaking of C class or lower-income class, I want to talk about a partnership that is very strategic. Maybe it's the most important, historical partnership is that Univers credit card, not very well known by upper classes, but Univers is the biggest popular health care provider in Brazil. They have clinics called AmorSaúde. They have their own card. Now they have over 5 million families that pay BRL 25 per month to have consultations at popular fees, an average BRL 25 to BRL 30 per consultation. And now this card may -- has over 1 million monthly consultations, physician visit consultations plus dental consultations, and 90% is lower-income class, C and D classes. So now we have are the bills being paid like gas and now they have a wallet -- they had this partnership with other networks. And now we are the exclusive network that will do the Cartão de TODOS, that's called the cards for all. So we are doing this through Univers with the beneficiary [ Cartão job ] and wallet plus bonus in the wallet card. So everything to pull more customers. Look at the map. This is Sao Paulo, our main state, and you can see the -- and the strength of the Cartão de TODOS in class C and how much this expands our growth with this audience. Now we speak about traditional levers. And we are -- like with the card and now we have -- we're going to speak of the strategy 2025. We spoke about the new promises. We have 41 million customers in -- active customers in the past 12 months. Out of those, we have 5.3 million what we call loyal customers, and they represent 13% of the customer base. And they make nearly 60% of their revenue from RD. Out of this group, there is a subgroup called omnichannel. They use more than one channel, therefore. So we're speaking of 1.5 million omnichannel customers. Half of those represent 85% of the digital sales at RD. So what is our challenge? First is to bring more loyalty, take people from that buckets, from other customers and turn them into loyal customers, and do their own digital onboard and make them a multichannel customers. And why does that matter? Just looking on the right-hand side, up about. First, a loyal customer buys 5x more in a year than a regular customer, 22 times. And when they become omnichannel, they actually buy much more. They buy nearly 40 times in a year. This is how often they purchase, and it's very difficult to find this in Brazil in retail, even harder in the Brazilian omnichannel retail space. These are high numbers, 5 figures, and they actually validate us to be a relevant player in digital, not only in the health care but also in marketplace. So this growth in visitation shows how digitization matters. It's not just to sell more because there's more and more channel. It's to have customers to spend more and become more loyal. And together with frequency, there is the average ticket that is also linear. And in the end, the spending grows more. And we're progressing a lot. We got 1.5 million digital customers, nearly doubled all that in 12 months. And that also drives to a download base that is incredibly high. That grew 2.4x in the same period. With that, what happens to our digital selling? It gets to a BRL 2 billion plateau, RD digital. If we were a separate company, it -- we would be the sixth biggest from a drug store network, 8% to 9% participation rate -- share. And I want to tell you things that have been said before but give you a different outlook. If we speak about origin channel, where tickets are actually made, app is half and it's growing fast. And it will be a major channel, but 80% is mobile, meaning modern channels, differently from other competition -- from the competition. When we look at our origin channel, telephone sales is minimum. Delivery and of -- it's 15% of our orders but mainly half if we look at financial because the ticket is lower because of the difficult prescription. When we look at the delivery, we also see this struggle. 87% of low orders come from store, an important point. We have 63% of low orders delivered in channels where it costs 0 or low cost. Why? Pick-and-pay is half of the demand and cost 0, and the neighborhood delivery is cheaper than motorized delivery, [indiscernible]. So we see where demand origin and the cost, logistic cost because household delivery will be similar to everybody. But motorized delivery is much slower, the weight that it has when compared to other business. And our entire network has services available at 4 hours and our focus next year is to reduce this service providing. So here, I'm going to talk about the marketplace. What is different in our marketplace? The fact that it's an omnichannel marketplace. It is health care marketplace. We're going to have ample portfolio of beauty, well-being, et cetera. That's well understood. But what is our differential? What is -- how -- what is our secret sauce? And what is unique about our assets? 90% of A class within a radius of 1.5 kilometers for an RD store. This is convenience that includes parking, et cetera, and stores are acquisition -- customer acquisition is matching where digital onboarding takes place, where they download apps, and in the stores where actually purchase orders are made. Digital customers do use brick-and-mortar. 98% of digital customers are omnichannel. Only 2% are full digital. So if you look with no brick and mortar, there is no value proposition. But we believe even with the multichannel, this omnichannel value proposition is innovative and makes us to have a low logistic cost kind of offer. Example, if you buy a 3P from a seller product, tomorrow, you can come and pick a product at any store. More marketplace has a bit to do. And I'm not talking about a mall store or street store. I'm talking at the best corners in Brazil, so the use of the existing structure. It is to buy and pick is better than actually home delivery because it uses the 11 distribution centers, thousands of stores that will make all our products to get to stores. So omnichannel is vibrant. And it will generate more offers with the endless shelf. So it's going to be very dependent and it gives you great opportunities to win. Varela spoke about this. I don't need to repeat, but this is the year 0 of marketplace. This is NVP. Now they are starting to get to -- but it's still -- we have a nice seller, greatest portfolio. There's great intense learning and the challenge is to scale this and improve the services that we give. Bruno has given you the latest on Vitat, and this is another area where omnichannel is so important. So we have the 4 apps, health -- we have 4 healthy apps, lifestyle apps, lots of solutions and many, many customers that we inherited from tech.fit, but we're building our own online consultation programs and other offerings. In integration with the health hubs, until the end of last -- next year, you'll be able to schedule services in the app. You have your patient record on the app with a vaccination card. Think, for example, of a diabetic. Every month, they can check their HA1 levels. And all of this, of course, will create huge potential. And speaking of the perspective for next year, we will continue on a solid growth route. Our expansion has never been as vibrant. We are expanding to 2,600 stores with digital. Of course, we'll have an echo in the mature stores because digital customers spend 20% more. So the consequence -- the positive consequence will be felt in the stores. So we believe that there will be a very robust top line growth next year and also in the future. And what we want is to do this in a sustained way a little more or a little less depending on the year, but digital will be a key lever for our growth. And before we speak of margins, it's important to understand the impact of inflation on it. This is the IPCA curve. There was a moment in which accrued inflation was 5.2% to 7.5%. So in the end, inflation continues to grow along the year. So this increase in prices only reflects the average inflation rates. But with some positiveness in the first half of the year, we were able to counter that effect. But in the second half of the year, inflation is creating some pressure. So according to the focus guidelines, inflation will be lower next year. And as a result, when we will have the price increases of drugs. And since the inflation is going to go down, the average IPCA will be around 6.5%. So as such, we will be able to recover the margins, which is exactly the opposite of what we see right now in the second half of the year of '21. We also have the currency pressure, the costs, energy costs on the rise. And so probably, the council of drugs will allow greater price increases, which will be positive for next year. So when we speak of profitability, what we expect is that we will maintain our margins. We can't give you specific guidance but we're talking about magnitude. We believe that gross margin will remain stable. We continue expanding our investments in digital. We have other strategies such as pricing and white label. All of this will be able to secure a flat but healthy gross margin. And with the positive price transfer scenario in as far as even with the acceleration of digital and some of our expenditures, we'll be able to balance things off with a neutral store contribution margin. At G&A, we have been making many investments in G&A. So our entire digital structure, as Varela described to you, the marketplace, digitalization, nothing is a free lunch. It requires investment. We have the luxury of having controlling shareholders that aim at the long-term profitability. So those investments that were made, we're able to counter any of those constraints. But I think that we'll be able to maintain this level with the investments that were made as the SG&A will be in line with revenue. So with a flat contribution margin, flat G&A leading to a similar margin next year, similar to what we have this year. This is what we expect. And just in closing, let me talk about our long-term vision. We are -- we have an existing business that's very healthy, but we are now building or reinventing 3 of our businesses, new pharmacy marketplace and health platform. We believe that each of them can contribute value, add value. So as customers get used to digitalization, this will be the table stakes. It will be the key conditions for a pharmacy to be competitive. When a customer downloads an app, they want top quality like Nubank, like usability as in Rappi, Magalu. The bar is very high, and we are walking towards this level. We have made great progress, but there's still a way to go. So when we think about the omnichannel with a top-of-the-line app that will eliminate the pain points for the customers, unless you have that, unless you can offer that to your customers, you won't succeed. So digital is going to be decisive in the future, especially in the area of new pharmacy. As for our marketplace, we want it to become a benchmark for beauty, personal care and drugs in Brazil. Many people -- so how are you going to convince the customers on the free market to use your marketplace? If you remember, our customers makes 40 purchases a year. So they don't have to come to us. They are already on our side. They will find more products, and they will become more loyal because buying from a pure-breed platform is something we need to give visibility to all of this, and this will come naturally. In health platforms, we're working on B2C to develop a full platform. We will also want a B2B version of the platform to help companies reduce their costs and improve the health of their employees. But 1 plus 1 plus 1 is not equal to 3. There is a multiplication effect because, as we know, the brick-and-mortar customer will also be channeled into the platforms. So there will be a multiplication effect of the customer life value. And it's a very powerful combination. Our aspiration is that in the marketplace and the platform will be material in 5 years but transformational in 10 years. This was the wrap-up I was hoping to make. And now if you have any questions, please write them on the chat. And Marcílio and I will sit together in a couple of minutes, and we'll try to answer your questions in the best way we can. So putting the pieces of the puzzle together, we are living in a moment of very intensive transformation. 10 years ago, I said we are creating a company. Now we are recreating this company, reinventing our core business with the new pharmacy. We are creating 2 new businesses, the platform and the marketplace. Both of them have a synergistic effect on each other, and we're going to multiply the customer lifetime value. And I think that the opportunities for adding value are just exceptional. So let me now call Marcílio and let's get ready, let's get prepared for the Q&A.

Here I am, Eugênio. Thank you very much for this wrap-up. I think it was a very good summary. So we are here prepared for the Q&A but in social distancing.

First question from Thiago Macruz. Up to now, the migration to digital world, especially in drugs, was always something relating to the store experience, but there are many marketplaces that improved their services and that deliver products on day 0. I think he's referring more to the aggregators. Now the question is, do we envision a risk of competing with those players?

When we think about the competition with those players, our business is the healthy and generic players. It's not as easy to sell, I don't know, a TV together with shampoo. There is one player in this market that grew in this open framework and is a little more prominent, but we believe that our assets is our network, our chain of pharmacies. We don't want to deliver in day 0. We want to deliver in D plus a couple of minutes. For example, where I live, there is a pharmacy -- I don't know, one block away. And I think that with drugs, we're under regulation, and this is the right way of working with these products. We believe that in drugs, we will get a boon from omnichannel because we'll be able to offer the same services we have in the pharmacies online. So for example, we know that it's important to improve the customer experience. And this will be represented by some new services such as subscriptions or alerts for the chronic patients who needs to refill their prescriptions.

So we don't really think the marketplaces will go that route because they want to sell everything from TVs to shampoo. We know that beauty is a more open market. They are participating in all those channels but we -- when we think of health, it's a totally different ballgame. The top enemy of any player is our capillarity. Nobody else has this capillarity. And this is routine for us. You are driving to the office and you stop at the pharmacy. It's easy for you to arrange the stop. So a marketplace that doesn't have that level of capillarity won't succeed. Today, we showed our sales. In percentage of orders, it's 15% digital, but in terms of revenue, 7% to 8%. So it's half the average ticket because we don't go into prescription drugs because there, you need another type of service. You need a partnership with the pharmacist now to buy Tylenol or shampoo. This is something much easier. But prescription drugs is a totally different ballgame. I'm not referring here only to the regulatory barriers. Who is going to -- how do you view the development of the platform and the new services in our team?

I think this is an important message. I was sitting here with some investors here. I think that it will be omnichannel structure. There's a lot that you need to do. You have to look at the client -- at the customer from the basis of the funnel, how to engage the customer. It's pretty much the same, but the cost of attracting this customer is very different and the cost of serving this customer is different in other digital channels. So what we have observed with downloads and as we began offering the application download, it's too low. So the pharmacy will encourage customers to download Vitat. This is what we are planning to do. We want pharmacies to be trained -- our team will be trained to offer the best possible for our clients. So when we think of the customer acquisition cost, especially in the new verticals marketplace and health platform, we believe that we have an immense competitive edge by tapping our workforce of 38,000 people that will offer the best to the customer. So the acquisition -- customer acquisition cost is different. We're not selling TVs or we're not there selling sneakers. We are doing what we have been doing best for 100 years, which is caring for the integral health of those customers. So I don't really believe that you'll have a problem with customer acquisition costs like other marketplaces.

No, the difference is that we have this customer base. That's a striking difference. Danniela from XP. Can you tell us the current status on lab test being collected at the pharmacies? Are you engaging in partnerships? Yes, the health surveillance agency is discussing this together with Ambra Pharma so that we can collect tests at pharmacies. We are doing several things that in the past were just unthinkable, such as vaccination. So if you go take a COVID test in the pharmacy, you see how we are concerned with your safety. There's always a very clean environment of pharmacists talking to you, explaining the results. So we learned how to provide those health services. And I think that customers and the sanitary authorities now understand we can do it.

But of course, there are other ways of collecting tests, for example, on a customers' phone. So there are many opportunities. And I think that one of the evolution of this market, there's innovation. I think part of this innovation will benefit the pharmacies. I remember 6 years ago, Eugênio and I visited Boston together with Ambra Pharma, the pharmacy association. We wanted to support this idea that pharmacies could apply vaccines. And COVID was the fire test there. I went to France. And if you compare COVID tests in Brazil to what I saw in France, it's just insane. So we have made great inroads in legislation and everything, of course, to promote integral health to the population.

Next question from Joseph Giordano. What will the rollout of logistics and the seller center would be in the marketplace?

That's the easy one. We have just started up. Let's break down the strategy in 3 chunks. In the first chunk, I think that we gave you this clear message today that in addition to exploring our capillarity, omnichannel is here to stay. Omni-hub is here to stay with an exponential impact. I have an adviser who says, "Well, this is not slight growth. This is really off-the-charts growth opportunity." So we are not -- we are setting up -- we're creating the marketplace. So the seller center and the aggregate business such as RD log, RD finance, all of this is extremely important. It's not going to be a quick journey. We have to create many services on the marketplace and we are certain that making that delivery is the most important part. So we're -- now we're trying to understand how we can help customers and sellers to deliver on the value proposition quickly. I think this will happen along in 2022. Our logistics team is working on it and it will take place in '22. This is when we'll see logistics become connected to the marketplace. And at the same time, we'll add more sellers. But a word of caution. I don't believe that sellers today have a good experience on the marketplace. For example, look for crutches on the marketplace. You get 750 items. Do you think that the retailer curated those results? This is not probably what happened. So we need to offer crutches to the customer, and 4 or 5x closer to their home. So we need a vertical business, and this is how we will grow. We are not building based on one marketplace. It's the largest and best in the country.

A question from [ Beatriz Souza ]. With associations gaining purchasing power, how are you going to reach the regions with lower purchasing power?

I think that Antonio Carlos and Raduan always expressed this concept very well. Our expansion starts in the capital cities with higher income population and we pan out from there. So we have seen the structural change in the mix of stores. So naturally, we're opening more stores for the middle class up to C1. But even the high-income classes in the elite premium neighborhoods in Sao Paulo and Rio de Janeiro, they are very affordable and they serve just any type of customer. Everyone can go there. However, we believe that partnerships just like in the TODOS card would be an excellent way of expanding our customer base. We also believe that omnichannel is a very good option to bring the customers closer, especially to the pharmacies we are opening in the more remote districts of large cities. So of course, this is our strategy.

And when we think of our competitive advantages, it's very easy to think of scale, right, because scale is what will lower your SG&A costs, but the difference in our numbers is not only scale but rather efficiency. We have the highest number of sales per store. We have stores with BRL 900,000 in average. And in Sao Paulo -- side of Sao Paulo, we have average sales higher than in the city. What this shows, and I think that this is very important especially when we make the comparison with other places, it's not purchasing power that makes the difference. It's execution. It's the store we can feel, trained staff, digital. It's replenishment. We have a full range in any location. For example, you can visit -- we can visit, I don't know, a C-class store, and we'll have branded drugs. So a small pharmacy can also develop through associations and cooperatives. This is important. But I think that our execution potential goes far beyond that at RD.

Okay. This is -- yes, I think we have your closing statements, Eugênio, right?

Yes. Before I hand it over to Marcílio, I want to thank you all. We are at your service. And I hope that next year, we will have some road shows and on-site events. Thank you very much.

I'll stand up for you to see me better. We are learning how to talk to the camera. Thank you so much for participating. Once again, we had the opportunity to show how up-to-date our strategy is, how we are able to drive transformation by agility and the use of data and by understanding what customers want so that we can better serve them. We are now moving on to a higher level. If you have followed our progress in 2014 with the North project, you'll be able now to get where we are moving to. It's a development process, of course, but we have the competencies needed for it. With changes in our staff and team, we need great people to back us up. It's important for us to have these people in the company. For 2 or 3 years we have been putting together this team. So we see that we have a role to play in the eyes of society. And please be sure that we'll have many more RD Days, many calls to show you what we are delivering. Thank you so much. Thanks to the Board and to the team working with me. Thank you so much and see you on our next RD Day.

Thank you. Thank you to the presenters as well. Let's give them a big hand. [Statements in English on this transcript were spoken by an interpreter present on the live call.]