Randoncorp S.A. (RAPT4) Earnings Call Transcript & Summary

Well, good morning. So good morning, welcome. I hope you are very well. It's a huge pleasure to have you here with us during this morning, this event that happened in a hybrid way with participants in presence here at [ E3 ] and also those who see us in an online fashion of Randoncorp on YouTube. I am Carlos [Technical Difficulty]. I'm journalist [Technical Difficulty] ceremony for me. This is an honor to be here with you throughout this morning. So for Randoncorp to be connected to its investors and further stakeholders is essential for us to continue building tomorrow together. That's why, in addition to the broadcasting in Portuguese Randoncorp will have [indiscernible] translation into English in addition to sign language interpretation. During our event, our executives will present the challenges, the outlook, strategies. Of course, so Randoncorp will follow with its purpose as it was shown during this institutional film, connecting people, wealth generating prosperity. The presentations will take place in 3 panels, i.e., growth avenues, innovation, disruptive innovation, pillars of diversification. We will also have 2 Q&A sessions in which everyone can participate, of course, we ask you to participate to enrich further the content of our event. So participation is very important both for those here with us present as well as those who are online with us. So we will access the QR code that you can see here on the screen or behind the bench for those in presence here. And then you access the QR code to request your participation. For the in-person audience, we will bring the microphone to you as per your registration order and for the online audience, I will read your question. If it is not possible due to the time constraint to answer all questions live because the IR team will contact you after the event. We also inform that this event will -- is being recorded and will be made available on the Randoncorp YouTube channel and also IR website, ri.randoncorp.com. Well, so to open officially our event, I invite our Executive VP and CFO, Paulo Prignolato. So Paulo, welcome. A round of applause for Paulo, please.

So good morning. Good morning, ladies and gentlemen. Thank you very much for those in presence with us and also those who are remotely with us. It is a pleasure to be here in this downtown, thanking the partnership with [indiscernible]and before starting during the coffee break, we were talking about downtown of Sao Paulo and the old days, and we are very happy to be here during this time telling a bit about the history and once more, I hope you participate, post questions, and say things. And we have a very interesting day today prepared especially for you. So what will be our focus during this event. We will be talking about the focus on long term, mobility, global thought, line of thought and diversification. Therefore, this event was built especially in order that we could focus on these topics. And today, we have here with us in the participation Cesar and also Sergio who is our CEO. Before starting, it's important to talk about our governance structure. So today, we are a company in Level 1 B3 in the stock exchange market, and we have the shareholders' assembly [ fiscal ] board and administration board that today's headed by David Randon who is the Board Chairman and Alexandre [indiscernible] and also 3 advisers who are independent, Carolina, Pedro and [indiscernible]. We also have our Chairman, which is Daniel Randon, sponsors of our ESG brand reputation, Ethics and Compliance Committee and Executive Board composed by the [ C ] level. Sergio currently will be part of the segment. I am the CFO and DIR and Sergio is Superintendent, Technology Director, who will talk about our future projects. It is important to stress our development regarding corporate governance that especially developed a lot throughout the last years. And this is a journey for Randoncorp. So we started complying to 2020, below 61% and in 2022 we reached 78.3%. We are very proud to say that our compliance today is bigger than those companies that are listed in the stock exchange market. And we keep on developing. It is important to stress that we disclosed a few months ago and again to established a committee of individual that is known as statutory body that will be advising decisions by the administration board, and we are listed company. Therefore, important to mention our whole public commitments regarding ESG agenda. These commitments we disclosed to the market 2 years ago. And this also is a journey throughout the 74 years of history of Randoncorp. Always important to stress the commitments we make and which are developing. They -- today with the support of leadership and investments that are evident, but always stressing reducing 40% of our greenhouse footprint by 2030 just to landfill residue distribution and effluent treating up to 2020 (sic) [ 2025 ] and doubling women in leadership post. And Zero serious accidents, no doubt the innovation, ongoing agenda, which is part of our daily affairs to increase the year net revenues through our products, something that we will talk a lot during this presentation. Now I pass the floor back to Carlos. So we will move forward with our event. So thank you, and I hope you make the most of this event.

Thank you, Paulo, for the opening, putting within context of everything that is happening now. I will ask -- let's show you another film because we have many. We are multiple, several places throughout Brazil, with a passion to part our way, inspired and mobilized by dreams and people and individuals innovating, creating solutions for the challenges on a daily basis. We are searching for prosperity, which is shared, which respects our relations with the planet and individuals, always has space for more in new IT, new product and user service, creating a sustainable future jointly with a new way of thinking and doing mobility. So we are made up by those that known in the world as dynamic as ours to keep on movement is key. Therefore, is how we follow. With the appetite for tomorrow and being bold and daring to lift the future. We are relentless, and we are always moving and development to connect people, richness, wealth, generating prosperity. So Randon companies are now Randoncorp. [Presentation]

So that is it. This was our film manifest of Randoncorp. Now we will have our first panel and to talk about the growth avenues of Randoncorp, I'm pleased to invite to join me on stage. Sergio Carvalho, CEO of Randoncorp. and Chairman of Fras-LE mobility. So please welcome Sergio Carvalho.

Thank you, Carlo. Can you hear me properly? So it's a pleasure to be here with you, and I stress please be welcome those in presence and those remotely with us. We are here on a set up very cool, beautiful day in Sao Paulo, we had cheese puffs during the welcome coffee, so this talk is for sure, and it's a beautiful morning for all of us. So I would like to start refreshing and recalling that all that we are as a company today, we have 16,000 employees, 32 operations in 8 countries, 9 centers of distribution, 8 joint ventures, 4 advanced units and our products can be found in more than 120 countries. Net revenue consolidated 2022 BRL 11.2 billion and we invested between R&D, invest -- organic investments, investments in organic during the last 5 years, approximately BRL 3.0 billion. So we have invested a lot in preparation of our company for the future. But before talking about the future, let's talk about the short term because I think it's in everyone's mind, the short term, I mean, it's the current year of 2023, perhaps the next 12 months, if we want to look things this way. And we are experiencing a mix of behavior of markets that we are present. Therefore, we have used scenarios of truck and buses market with the advent for [ scenes ] of Euro 6. There was a [indiscernible] by the previous conflict that we reflect difficulty [Technical Difficulty] but also difficulties regarding pricing of new vehicles with new technologies. The segments of semi-trailers we have seen the performance with the previous years, the segment of replacement of our performance, which is a huge segments linked to the export also performing well. And all this for us is one more evidence of what we have said frequently for all of you, which is the model of more resilience for revenues that we are having of Randoncorp. Many see us as the semitrailer manufacturers, which is true, but this part represents 1/3 of the company revenues. Important today, even though those moments are more difficult now that we are experiencing now in these countries, we keep on growing our revenues, perhaps not at the same pace -- speed and pace as before, but to keep on growing, so this is the evidence of what we have said frequently here. The interest rate, we don't need to address this. It's on 24/7 news every day. So saying that it is good, we need to control the inflation. We see no economy effect, so we are under border of a new process where the interest rate will be reduced, the exchange rate has impacted negatively. Our international business is slightly -- so raw material inflation very well. We have managed to reduce substantially our cost in raw material and several uncertainties that this in our environment -- political environment uncertainties in Brazil and also in the global scenario. So we have a new government office, new views, proposals, tax reform and many of the projects that we have underway that are being advanced even though with the change of government and a worldwide uncertainties, geopolitical, which is an ongoing concern, not only the war in Ukraine, but the impact on commodities worldwide. Taiwan, China, the dispute commercial one that is stronger and stronger between the North American and the Chinese, representing a big risk and also representing a big opportunity for those that are correctly positioned. In our view, it's expressed in our [indiscernible] that we, every month publish. We had foreseen most of what has been true. But we are calm. We know what we have done and what we forecasted is correct. Our revenues are growing to consistent margins as we had an accelerated growth what we consider for next year. And this year, it's from BRL 10.5 billion to BRL 12 billion revenue. So our chart is very clear and you can note there is a growth in participation that's even bigger only in the foreign market that is reflected in [ 2003 ]. And the minimum margin is 13% and the maximum is 16%. The result of our first quarter. We delivered 16.6% of margin EBITDA, and we are very solid financially speaking. We are investing proportionately to the size of our company that's very relevant. Despite that, we already have the leverage that's extremely controlled, 1.5% our EBITDA. So how do we grow accelerated, one renew technologies for the future. At the same time, our core business is taking us, as Paulo has said, in a responsible way. We are controlling very well our leverage and we have improved our secondary market within the cost of our debt in BRL is 5.1x below the market in [ chip-away ] companies. It shows the good work we're doing, obviously. And also, the team is working well. And the banks are considering our company very well, and they are safe and they feel safe the way we are taking. Concerning resilience of our business, explaining and comparing the first quarter of 2023 with '22, BRL 2.7 billion this year compared to BRL 2.5 billion in former year. It's not the same rate in terms of growth that we presented. But despite adversities, we're still growing. The implementing segment for us is 29%, very close to the previous year. And the big drop has to do with production of trucks specifically Euro 6 [indiscernible] . You see the drop concerning that. And the replacement, we are growing well in the foreign market. I will tell more about it. It's more, more this in this case, and the financially speaking, digitally speaking, we are growing more in our technology area as well. What we repeat despite having a very difficult moment concerning production of trucks, it's substantial in our market. We are giving job to 2.7 billion, it represent growth in the first sector of the year. And if you compare the revenues that we are having, we are maintaining the growth recently -- we are almost in the third quarter. And information about these 3 verticals in business what impact our revenue. You see that in the vertical, our company, our automobile company talking about the semi-trailers and the trucks and the replacement of the semi-trailers are the most important ones. And concerning the semitrailer is associated to agri business and a small growth in the non-agri segment. And also concerning export to Argentina and the production to and exports to Chile and South America in general, the economies are very difficult positioned. You see the blue bars. So is it working? Can you see the drop over BRL 176 to BRL 84 million. But above that, you see in the orange one, it's for American market contributing to our growth with BRL 156 million. So we are representing vertically in the first quarter. Concerning the auto parts for instance, we representing decrease. It has to do with the Euro 6 and trucks as I've already said. There is a drop in the consolidated value domestically speaking as well. And this stable one in the implementation segment. On the other hand, our mobility is presenting outstanding external part, a very specific situation for Argentina and a big client that we have that has done some adjustment in terms of stocks, giving a reduction in our revenue in this quarter. The domestic market for reposition for sending mobility is going very well. So it's BRL 376 million. It's a big growth. The inventories are growing. So -- you see now BRL 839 million. We are strong as a company. We know that there are moments that in some segments will be down, but the others compensate that there is a balance. So again, it's a very delicate moment for our business. But we are betting that we will have positive results, as we are growing in assembly. And when you consider the horizon is sustainable growth in 2016, if you compare it to '22. You see the revenue of BRL 2.5 million so it came to BRL 1.2 and BRL 4.2 bigger. So it has been doubled and almost tripled and our EBITDA, it is 10.5 times in growth. Our net profit and the result is almost 9x. Our CapEx going together with our views of the future with growth that are very exponential in order, we are sustainable in our journey in the future. If on one hand, the past is a legacy, the future is a raw material that we have in the present. We will show what we are doing now over the last years, if following the results and then we show our view concerning the future and how we're taking our growth to the -- our company to the next stage of growth. Talking about mergers and acquisitions, we have recently an operation of [indiscernible] in Campinas, totally automated by our own company, Auttom, producing articulations for the buses with a technology that is high class and it is state-of-the-art, our partner, the German Partners was taking this solution to Germany, sorry, to do the same thing there. So distributions from the mobility part. Several of you have been there in the beginning of this process of transfer. So in the south of Brazil, the rest is [indiscernible] mobility is this center of distribution present. We have a new distribution center in [indiscernible]in Santa Catarina, and we have an automated line producing our trucks and 100% automated for sending our vehicle bodies. So we have in Argentina, our consolidation. In the past, we had 4 units. Now we are under the same roof with modern installations, and we are creating now a joint venture with [indiscernible]. We will talk about the subject. We have an automated line, and there is a new state of that, that we are presenting. We have [indiscernible] operation. It's a lot of warehouses, it's also automated. The factory that we announced 2 months ago [indiscernible] electromobility and the buy of these assets. We are having the auto parts presence as well in the United States has happened last year in November. We are going very, very well, very happy. So this is relocated in Mexico, which is much more adequate for our type of business. We created Randon Venice, and now we have the same tools in part of the south, and this operation is going very well, much better than we thought. And recently, beginning of February, we announced that the geographic purchase, we're expanding our path of mobility with this, replacing warehousing and the company that works with software. Software is the key of the digital world. It is very difficult to find professionals that work with that. It's a big challenge. So we have to protect our intellectual property. That's why we've done this movement to have access to the development of software. That's the future and also to create solutions and protect the same, it's equally important. So many things happening in this segment. In terms of new products and services, new business as well. And the system was selling both. And what we are doing now -- what will detail better for selling the mobility with new materials, we have to compare the business in China, in India. We have a team working there. There is a lot happening there. New business for our auto parts market, rentals market. It is a telemetry product that we launch, it's going very well. And we are not producing because we do not have the same conductors now, but there is a very big differentiation. I've already mentioned concerning our auto parts, the modular platform that we'll talk about as well, Randon SMART and nanoparticles. We are producing more normally now. You're going to talk about it as well. And the sales of the e-Sys system, the same talk is happening since last year. We have projects of big [ sys ] for trucks, for special vehicles as well. And exports of containers and also trucks and long trucks that we're exporting to U.S. And what I have mentioned is using international methodologies. This project is a product with low volume. In the case of railways, change of the design contributes to reducing the greenhouse emissions in 46 automobiles in 1 year. It's a unique project that we developed and we adopted a new methodology that is professional and global, its auditor. And we can use the auditing and it will be our first project to be developed according to this methodology, and we use it in other products as well. We have a new machine. You've seen in our manifest. The center is there, mobility. It has been changed recently, and we will go into details. So there are lots of things that are good. It's just a sampling of what we've done in the past recently. It's not only the financial results that are good. There are adverse situations, of course, but we are taking care of people, investment, governance, environment. So what do we have to do to build the future that we look for? And we have split and we talked with you previously about the North, the strategies that we take. What are they? They are not strategies that are specific of the units, the laws that we take care of are company principles, mantras, our idea, what's vertical regardless the country we are, we are in line with the best thoughts about that. For years, innovation technology is key for us, is a differentiation. No company will survive without it having technology and you will have differentiations. Focus on the client, it's cliche, everybody repeats that. We do it over the last decades, but what you want is a real focus, creating solutions for our clients, solutions for the clients of our clients. So as long the clients are happy, you are adding value. They will maintain the business and they will expand with our business. So internally working, domestically working to have the focus on the clients to be a very important point. So as we said in the past, diversification, 30% of replacements in the international market. The economy is going well. The strength in Mexico are fine. Business is not going well. If you're not producing so much, naturally, we have to do more maintenance. So use the present assets, doing replacements. And normally, when the economy is not so good, there is a devaluation of the currency, but normally. So if you are exporting, so in the transpiring of the exchange, you have some gains. So it is being robust. We want to be robust financially, but we also want to generate a performance that you have good flow supporting our projects in the future. So synergy is very important for us. Our surname should be synergy because everything we do without synergy, we don't do. We do not buy a company without defining where the synergy will come, not only in that business, but in the interrelationship with the other companies as well. It's so important for us being a company where people want to work, our principles, the way we are and do and our values and experiences and ESG, we already mentioned. So again, it's not only the strategies, the loss that we take and the principles of our companies. So now talking a bit our strategical plan, but normally we don't speak that clearly. Last year, we always dealt with this in the past more confidential-wise, but several elements we brought to the public knowledge, so we feel comfortable by dealing it with you well presented. But one thing is to share information, other one is to copy. So to get an idea that you should effective someone do it equally and execute it, it's more complicated. So we will share with you now some pieces of information regarding our strategical plan, which is the basis of what we have than the results we are showing our growth. Everything has to do with the point of view that we have of the future and strategies and how we execute everything that's happening today as you will see as follows. These are points that we addressed years ago. So our process involves strategical guidance, which are business principles. We have a 1-year plan, which is the operational plan. So the execution, we have to follow the plan. This is sure. Then a 5-year plan and 10-year plan. 5-year plan is more strategical. It's not operational. It is rich in strategies, less rich in figures. And 10-year plan is more a future point of view regarding positioning, no figures linked to it. This is an in-house structure, very detailed plan with lots of information, but the process is the way it is, is what we are showing. So what you see on the screen has been disclosed for some years, especially through the fast world and mobility first that we developed in '17. This slide is exactly what we used in the past and something was shown perhaps with different colors, but this slide is our original plan. And I would like to explain further why we have developed this plan 6 years ago. First, to create a powerhouse of replacement or refreshment. And at this time, '17, we talked about electrification. As we speak today, autonomous vehicles, but the level of knowledge was very limited, various [ grid more ]. So what will happen with this? What will be the effect on [indiscernible]? We didn't have the level of knowledge we have today. Therefore, back then, our view was the following. If by magic, next week, Monday, 100% of cars will be electrical, replacement is based on the population of those cars on the field so we will be protected. If the technology change live switch, we will be protected. So investing on replacement was a safe harbor for us and is being profitable, resilience and the variation of trucks manufactured during 10 years had varied, 270 for the peak and down. So replacement had variated 40%. There's variability, yes, but not as much as O&M businesses. So it's profitable and it was core for us. That's why we chose to do these investments. That's why we bought Fremax and bought Nakata. All this was part of a plan developed by them. All we have followed had been planned on the long term. Well, the second bar, diversifying the O&M business into advanced materials. This also we defined 6 years ago. And what was the thought back then? Repeating. We don't know what's going to happen with technology. Nevertheless, we know that the trend of removing weight from vehicles regarding the source of energy of these cars, electrical batteries, batteries, hydrogen. The lighter vehicles become less energy they will need, and this we cannot go again. So cars today have less components and steel compared to the fact that why we invested in this journey. That's why we have today the smart control slides, that's why nanotechnology appeared. All this foreseen 6 years ago in the developments that followed, the public knowledge in the recent past are linked to this development. And the third business of embedded electronics, we have launched recently our telemetry system smart, Paulo -- excuse me, will talk about it and the expansion of business in different geographies, international markets. But back then, our focus was more towards the emerging markets. That's why we doubled our operation in China and went to India. So this was our plan as auto parts and back then, Randon companies. This was the auto part plan and cars was part of the auto parts during this time. So we had to define the Fras-le and auto parts Randon 2 years ago. We divided. So being -- dividing all these histories and telling it everything we did in the past, I hope you can see that this was all planned 5, 6 years ago, and we are now executing exactly what we have program with slight deviation in one case is what we have been able to deliver solutions before what we have planned. So this is the past. Now what our future plans now? What are we going to do during our new journey? Always abiding by our guiding strategies. We will keep on now expanding this platform that we have created this powerhouse of replacement reports. For the same reasons, you can see market stability, cash generation, lots of synergies, investing on replacement. You must have the relation of capital versus the revenues you generate is more favorable here than the transaction. Purely industrial or manufacturing cars. So this is keeping on expanding this well-succeeded replacement powerhouse. This is a small film. I don't know who will play the film. Let's see if it's going to work. Yes, Fras-le. So this auto making that happened during last April few months, showing our booth and how we participated in this special fair. Important points for you during this segment that was a huge success this fair as all, I walk through the aisle of the fair trade sales ,#1 of a huge European multinational home and gigantic in fact. So we walk through the aisles and that said, we must invest on the replacement market. And I thought, yes, but we decided to do this 6 years ago. Something good we did back then because we were already in this part. And when we talked with our clients, we don't have specific figures launched. Our competitors many times are not listed companies to know our position in the marketplace. But what I know of the top 10, of the 10 -- top 10 Brazilian distribution company, 7 say we are the big ones for there. So a good chance for us to be the biggest company on the replacement segment in Brazil, taking -- going over international companies. So all this that we have developed in this project in '17 and '18. So the special fair was a huge success. We were congratulated for what we did, but it was a reflect of all this work and execution by our team. The second element and there's an aero cover that I will go back and address it later on, it was international expansion. We already shared it with you. We want to reach 30% of our revenues in international market, but there was a variation. Previously, we've talked about emerging markets. Now we are more focused on major economies and strong currencies. For several reasons, U.S.A., especially is the biggest market worldwide speaking and has resilience in its revenue, strong currency, more cultural development. So within China, the culture is quite different. It goes back, the whole certain values. It's a huge challenge comparing both countries. So dealing with American transaction is similar to we, Brazilian. So the manufacturing plants indicators are similar. There are differences. Of course, there are. But it's more closer to what we do to us than when you are in Asia. Several synergies in the regions, international synergies include. Another important strategy for us is this priority given to development of smart materials. So this is also an extension of what we have been doing but giving more speed and body and investments, not only for using this smart materials in our products but also mainly creating new avenues for growth. Likewise in terms of reasons, one cannot go to a gas price reduction improvement for clients, everything to do with ESG. But here, it gives a competitive edge and we can protect the industrial property. And this is very important for us. No use developing something, very cool with advantage for 6 months, 1 year. The competitor will copy and you lose it also here with our compass and nanoparticles technology, we can do things that we -- no need to sell to competitors. We can retain the technology for us with patent and everything thought about it. So this is extremely important for our future. Now the participation in electromobility. This is a huge market electrical vehicles, buses and trucks, airplanes and ships or electrical, everything electrical today. This is a giant market emerging, and we want to be part of this market. And we have strong initiatives in this sense to be tapped. And finally, the existence of ecofriendly products to reduce the footprint of CO2, everything we have been doing, I gave the example of this railway shoes, the mobility sensor will drill down on this, has to do with our objective. So these are our views and strategies for the future, but you can notice there are several arrows that are erased. It's not too food for thought, but these subjects, they have confidential aspect we cannot share it with you. So our plan is more extensive than what I'm showing you. Perhaps one of these, we will bring to public knowledge before the end of the year. But this is the equivalent to the chart you saw with yellow arrows at the beginning. And I hope in 5 years, we can look back and say the same things that we said. Well, this is our revenues journey. I think I'm way beyond the given time. Yes. Well, it's confirmed. BRL 2.6 billion, reaching BRL 11.2 billion in 2022. This is our guidance for this year. So we have a clear view where we want to reach in this new cycle. We know the size of the company we want to reach. We know the route of how to reach it, and we have this track record of delivering and doing what we have said, of course, obviously, for several reasons. We don't have the freedom to disclose the timing and values, but the message is that there is a plan, and it's detailed and it's part of the strong of -- point of Randon Corp. When we adopted this plan on development and process included, we start to be more consistent in our deliverables. So this is the message we pass through sharing a bit without stressing. There is a strong process with you. And thank you very much, and I apologize for taking more than needed.

Thank you, Sergio. The pieces of information presentation, it's good to see how the company is laying down, it's preparing its future. Before the next panel, I know how important your feedback is important to Randon Corp. We will have now a moment of interaction. So I will post 3 questions using the [indiscernible] platform. So prepare your mobile phones, including those online with us. You will answer the questions, recall how I explain accessing the QR code that will appear on our screen. You will have approximately 30 seconds to answer each one of the questions, and we will show in real time the answers. So let's participate. So I will prepare the first question. Now, how do you rate the current market moment for capital goods companies? How do you rate the current market moment for capital goods companies? Okay. I haven't noticed. Okay. So let's test again, 3 questions, I will show them -- so it's working. Okay. So Cesar is -- who will speak on the second panel, the Superintendent Director, Cesar, will share with us about pieces of innovation, disruptive innovations of Randon Corp. So Cesar, welcome. We have advanced you a bit.

So thank you, [ Carla ] and all yet indeed. I thank also those who are following us online. So now some of you have followed things with us and have heard about. I always start talking about our innovation in product, but I would like also to use this moment and start by talking about processes. We have worked on with a strong [indiscernible] as you mentioned, some of the things we have done in manufacturing. And we have also this strategy in this sense. So we have invested in a consistent way during the -- in these 4 pillars, which I deem them very important to sustain this growth. We have to provide protection, we must give to our businesses and to keep us connected decision and have for [indiscernible] as things have to do. So we have worked strongly on these 3 verticals. We have looked for developing tech solutions in manufacturing of [indiscernible]. So we mentioned the project of automation on the plans of lost income [indiscernible]. The whole concept of this plant was developed by us [indiscernible] customized for the type of product as [indiscernible] briefly touched. The Chairman guys came here. I said you're doing like this. Yes, and it's ours. We have a package on it. So we, as partners, can share, but we are [indiscernible] the market solutions that can seem to be the biggest thing, but presenting a competitive advantage lies in our process. So talking about creating processes and machinery [indiscernible] will guarantee competitiveness we need and protect us of what we always do [indiscernible]. If I buy a super equipment that will triple my productivity, perhaps my competitor will receive this instrument before because the lid that sold to me will be sold to him and I have already bought it. So we want protection, of course, automation is our strong point. We have invested a lot in automation. So I will talk about -- more about it. We have invested in robots, and we are using it intensely and looking for efficiency in quality guarantee of our processes. So focus, talking about [indiscernible] process handling our parts, we are not talking just about efficiency. We will talk about safety. And also all the concepts of what we know of in the smart manufacturing, some rather call it Industry 4.0. I like smart manufacturing because what we are doing is to create, in fact, through and put intelligence in our manufacturing. So let's say talking about something new. I don't know if you all heard I was talking about it. We are working strongly on the building of a proprietary manufacturing investments. So we have a complexity at [indiscernible] because our business is very diversified. So buying a platform that's ready and trying to customize it will not work out. We will not be able to protect also part of our know-how, which is part of our productive process. So we are creating our platform. It has a name [indiscernible]. It is a path. You can see we have here, a long plan of development. We are already advanced in the phase of visibility, searching for transparency following the logic beauty what will be our smart plant autonomous for the future. So there is a rate that I have to mention. The BT is a big stop for this structure. So again, our movements are integrated. And yes, we have people that are very good and help us in this construction of this manufacturing system. And as I said, the order to be efficient, we have to have more automation [indiscernible], but there are more than 40 automated projects being implemented over the last months, and I can guarantee that we are almost with 50 solutions in terms of automation, either on the companies when I'm talking about process, I say it. So 10 [indiscernible] automation process, but we're investing a lot in manufacturing technology, showing the results in our operational cost and the [indiscernible]. But I always repeat, and I hammer on that. I talk about product. I do some background as Sergio said. If you see the headlines, 2 years ago probably, and if you consider what Sergio comments on our initiatives in TED and the electrification strategy, [indiscernible]. All that leads to the consolidated strategy that is being confirmed. What you see in the middle of the screen, that's very important. It adds funding and you have to have places to find solutions in terms of electrification. They will [ distinguish ] what is necessary, so the composite and the gains and the operation in the environment, you have to balance the [ Internet ] in terms of waste, the composite material, artificial intelligence, what we do in the composite area when most of the international sources that are international, we have translation of international papers showing in line and consistent working in this direction in terms of composites. What we are working and I reinforce with that, and we are sharing this information here. When we discuss electric mobility, it is more than necessary. It's vital. If you are in the automobile company, if you talk about mobility, it's not linking to exclusively talking about battery or engines -- electric engines. If you talk about mobility, you're considering hydrogen. You use a solar fuel, there is a [indiscernible] involved that is a transformed involved that transforms hydrogen in electric energy. So if you reduce using these technologies, the footprint, of course, you go via electrification even when battery is not the biggest source of energy, but the track will be electric. So we have to consider that strongly. You see examples. I will talk more about it. What we're doing in this as talking about embedded electronics, it's another source, another vertical of our movements in the economic adverse technology. You're talking about intelligence in our products. You can have any product offering the market, but it has to bring information, deliver data in situations that help the anticipation and the building of a [indiscernible] brand that is prevented and sound generating a better product and equated to the market, understanding the use and appliance of the application of that project from the part of the client, delivering the best with the client with data. Data is the future -- is the product of the future. A solution portfolio is here not only the total [indiscernible] talking about all the auto parts, they have to talk. They have to show their condition, what they need, what they feel [ between inverted commas ] to understand efficiency in our operations. Of course, [indiscernible] has pinpoint materials that are very important, a very important source. We are investing a lot with effort. We have competent people working with us. I was visiting for [indiscernible] after selling the [indiscernible] to a better place. We have in [indiscernible] many projects together. Material for us is a source as part of our strategy. But again, Brasilia is reducing the waste gain, not only that, we are considering other things like efficiency in the batteries, a series of initiatives that are very interesting concerning material. For selling electric mobility, we have to mention issues. Most of you know it. You're giving classes about it. You heard so much that you can explain better than I do, but we have trade in the market in the end of last year, Sergio, I repeat your sentence. Sergio said, I believe it did not happen in having the biggest event in transport in Germany and seeing there a solution that is inspired in our solution. It is 4 years after we have launched it. So we are happy with this solution. It did not stop. It's generating opportunities. And some of it, I would say it's not a limitation only to the road increment, but we have few solutions presenting for the agri business to transport our equipment or selling mobility and logistics. People are looking based on the [indiscernible] of our solutions. We have a vast range of products, and we are finding some solutions that we did not consider in the beginning. Now our -- the use of our product is there. So we cannot give many details, but we can tell you that we are advancing and integrating solutions with a new audience. So what I just talked about with other people, the solution is hybrid to, let us say, a [ no truck, ] you can consider the [indiscernible] the old one, we can use and have a hybrid solution. Imagine the new technologies, if we embed everything electrically with solutions, considering the size of our country, considering this aspect of infrastructure that may be a drastic technology change or the affected tails in business like ours. We have to be flexible. We have to adapt and promising things are happening. And very soon, we'll bring news to you in this area as well, but did not stop what we talk about electric mobility. We did not stop considering only batteries. We also presented solutions of reticulation, use of solar energy, sun energy, solar energy, using the trucks that are using the reduction of fuel. So the secret is not in the harbor. It's in the electronic logistics, taking decisions. So we have inputs in the building of the algorithm, when the vehicle has access in the Internet that reason that we are [indiscernible] where we have the role [indiscernible]. So the position on the road -- so what's the direction for saying the [ sun ] in that period of the year? How is it climbing, how is the weather. So we're taking the net data. So we're talking about generating that I say in a big truck circulating in our region, it was in [indiscernible], the research, almost 1,000 kilo-watt [indiscernible] in terms of the economy. And so we -- it's saving you see if you consider the upper part of the truck and the laterals, we use this energy if you consider when you have whole interference [indiscernible] because you have to cool the material that is in the area. So it also offer in terms of energy that's being transformed. It started to be a solution, not a problem. So when you have [ refers, ] you have to consider that when you consider the footprint is our responsibility as well when we talk about electronics. That is a case that I always label success case. We developed a partner solution for [indiscernible]. It is a solution that's been used by our auto parties of [indiscernible] that it was initially applied in [ Rome ] methods. And we tell that in terms of efficiency and response, that's the best solution that we have in the market. Of course, there are thousands of solutions that are already integrated in our products [indiscernible] as well in the peers of the market. But we start bringing [indiscernible] and it's not a good technology. In the past is not so common. It was not a priority. It was not in the place of product that some don't have in the past now. We do, but we do not limit to that. We've seen the launch of Randon Smart. This is a solution that was developed by this team. That's not only building a software or interface absolutely well accepted in the market. [indiscernible] mentioned when you've seen Randon smart, the operator said, God, that's what we needed. There were solutions, but they were not complete. We do not match things. You have a complete solution that we believe is the success for our products. It's just starting. We call it Phase Zero because the V1 was bigger the V0. So we had a free vessel that was well accepted. What are we considering with distributions, not only telemetry, of course, it's important, but delivering the data with intelligence, getting what we had as having more eletronic, information [indiscernible], sales or intelligent [indiscernible], algorithms that are created, as I say, the owner can in before the driver, give information. As I say, maintenance is necessary. So perhaps it's adequate to use. So we could affect the life of the product. So everything has to be considered before hunt, we have to feed with concepts and give a better use for our products. So work with this kind of concept, not only sending data. This is a standard for what we have to do is send an intelligent data, useful data. And we are very happy to say that we have the feed bad of the market, considering what we've done with this type of solution, and it's working well. I can also mention about materials as Sergio has said, is one of our priorities, and we talk about material, not only about aside, as we see here, we say things that are new about new concepts in terms of material reinventing some more materials, look for alternative solutions in several parts of the group. We develop growth at international. If we just completed as a involvement we're seeing globally. And we deviated and maintained international projects with research. What I want to say is that we do not limit ourselves towards [indiscernible] to us. We're looking for technology everywhere in places that are not [indiscernible] if we add to the product, we do. We believe is something that we have in fruits, and we have given more and more of that with Props [indiscernible] at integrated advance in our chain in our solutions for the [indiscernible]. We have some very in mind. We've done really advanced technology, a part of our the automotive [indiscernible] on the market, it generates value and connectivity is placed by the priority and Corp has never generated gain market the month as we have delivered in the last month. So it's the like that on what's happening all over the world, EV Corporation via creating technology and protecting this technology via the international bill. That's what we are doing. We have talked about [indiscernible] and we have to talk about [indiscernible]. I started our initiative with Atlantis technology, local cost solutions, you see other types of materials. We know an export, you know it, hundreds of thousands of parts in the market, not only in random [indiscernible] but also to supply the market. The photos you are seeing on the screen very [ Fenatran ], who is the producers of charts in the market are players. Everyone knows that setback has not be neutral to their vehicles. Actually, it's a new mechanic horse that is used and solution embedded [indiscernible], a distribution in the market in seat of several. The CEOs can hire not in the same boat, but fees and the second and closer and easier and they place in the market. The solutions are having important impact. We're discussing with the head office people from a broad set, we want this type of product as well. A player has got a [indiscernible] on it to my part abroad and they say, "Oh, nice, you have it here." So it's not disruptive, it's a challenge we have, looking for a solution that the market will accept a setting solutions that are coming now adverse technology and providing business is a relevant asset. We are delivering what we wanted to do. It's a transformation. When we talk about comps and composite material that technology and [indiscernible] is going so well. There are all the technologies we study and we improve that will be delivered to the year to post in order to be explored in the market. And it seems that it's not like that. It's pretty cautious to say, but it isn't. We've given only the first metal step, very small. What we see, we can do much more with [indiscernible] and the copper side material. When you consider that accretively and partly, I summarized on the screen in a simple way. That's what we see. Transformation in new raw material. It's not hear without the purpose, enter things that we are bringing and also big reality is being installed in objective material the image you see on the screen, most of them are products that are already embedded in new solutions that we have for our clients as well, we're conceding to protect via processes -- production processes. Our view is very clear where we can get, what we can reach when we consider the end product in our company but also solutions that are embedded in other clients in all the markets. So we have ahead of us that's very bold. I have to talk also about the 9-1. I have to tell you, of course, last time we discussed it, we said that we had around 20 projects going on. Now we have 65 projects being developed in nanotechnology. How are we working with that? In fact, we are several areas in the front when I discuss it with you, I can tell that we do have solutions in the market. Building another ones and all the pros are embedded approximately, let's say, 65 initiatives. We always say about [indiscernible] that we've developed together with them. It's a non restructuring one, and we always refer to this thing. And of course, it's painting is a solution, of course, our business we or a sub-prime is a line of business, a solution at our company [indiscernible] on the screen showing there. So you see the pad, we can revise the product. I say revisit. It's not only using the painting that's not structured and that is obtained in the market. It's a market that requires north of the states or is utility companies there. Their requirements are very tough on selling. But also this solution and this technology allowed an important reduction in energy expenditures. Both for cure time and the preprepared of the part. Technology is not only limited to nonstructured paired with the functional [indiscernible]. We went beyond this paint allow drying technologies to be used that not long ago were not allowed for this type of product, because many time generated on some type of imperfection. But now these parts, they drive in minutes. We are talking very, very short time intervals with expenditure of energy. We don't use high temporary tools for [indiscernible] concept with microwave is completely different than uninstructed paint allowed us to use. And I place this is just the first one. It's just water-based. Only patent chemical products, we have a wide range of those products. And we don't have to use hot houses because they are very major. We will have novelties that we presented in the marketplace. The partners and other initiatives with other players, which are related here with lines of product that our partner does not do and so forth. Therefore, just on the chemicals front, it's where we did the first [indiscernible] is bringing revolution as we have combined with and will do it, and we are harvesting the fruits from this [indiscernible]. There's another front that was shown. We have a line of products being developed, but we are seeing this line as much or more transformational than the corrosion subject, which is the impact of nanoparticles in metallic and products. So we found a modular on grade because we have a huge capacity installed in the group. We have after tech with a capacity of product more than 120 tonnes of found the gray iron. So we will research this line of product. And down here, you see a wide range where we think we will have present impact which are substantial. And we have a [indiscernible] also. One of the things we have this hub here, there have been some countries manufacture aluminum. So imagine comparing aluminum hub with a casted iron, the difference of cost because aluminum because it demands reduction in weight amongst other things. We are challenging ourselves to transform casted iron to aluminum and weight closer to the casted iron weight. This is one of the challenges we are posing when we challenge ourselves. We will deliver. So if I'm telling you is because we are close to reaching our purpose. So these are things very relevant within our landscape that we are presenting. But if I talk about the 65 projects, and several initiatives that are very mature and close to becoming reality will take the whole afternoon of today. But I would like to make it clear that [indiscernible] has expended horizontal opportunities. We have 2 things, as I mentioned. Yesterday, I came from Santa Catarina, where we have Nione where we have interesting things. We will have to change its site and place in a different region. It needs more space and also be closer to certain hubs. So Nione is flying, and we are very, very happy with what we are seeing happening over there. And of course, Lucas will be mad at me. You tell but you don't tell, really a thing. So one of the arrows Sergio did not mention, I will repeat what he did, but we still want to present during 2023. At most 2024, a tech novelty that is quite interesting that we are working on. It is a new arm, but we want to show and we are happy with what we have seen for the reaction of those we have presented. It will be presented as a concept. It's a cool business. We are working on that shows the capacity technical wise of the group that we built within [ Oncor ] to develop and work on line solutions with the demands. We understand that worldwide automotive or global, if you rather will request from us in a very short time, so I probably to deliver a bit early, but I think I would in a given time. So thank you very much. I think we will have more opportunities.

Please stay with me on stage. You gave us some extra time. Thank you very much. I promised 10, but I delivered 2. So I'm still owing times, amazing to follow innovations that you have shown as now we will do a solo. I ask Sergio to join me on stage and [indiscernible] join us on stage, and I invite now the Investors Relationship Directors, Esteban Angeletti, please join us on stage, investors. And so we will have a Q&A moment, right? So just to stress, as we organize things, you can sit down. Now we have our QR code for the question you access on behind your batch. It is available. So Esteban, you have the floor and enjoy your panel.

Thank you, [indiscernible], and all those with us in presence and remotely. Just stressing this section can be accessed by QR code on screen behind your badge, place your name. So -- and those who aren't present, will follow an abide by a queue. Online, you also have a queue with the our IT, and we will receive questions in written. First question, Lucas [indiscernible] please.

Just to advocate my rights, we always want more than you can show us. So you know the importance of keeping some secrets. But excellent. But I think it's a question a bit mixed with both panels from Sergio and [indiscernible]. These events are good for us to reaccess the strategy planning on the long term. I found especially interesting during your presentation Sergio when we saw the auto parts in 017 and there was an element perhaps of medium term. The third bar and into the management segment, electricity management of components on auto industry. And when we look what is being developed today, we have one more focus on material processing. I perhaps this is a migration due to adjustment perhaps of what is the core competence of the company, powerhouse, as you said, about materials, composite materials and different processes for different products. It seems to be something more compliant to what is the metal mechanic things of the [indiscernible] understand a bit this adjustment of roadmap of what the company has to do, but I want to understand how much you understand that you are distant and what's lacking perhaps regarding core competencies development to encompass the embedded electricity that Sergio mentioned so much. Perhaps we noticed this is a bit more distant than the whole hard core of the comp in terms of science, technology embedded. But I would like to know how your distance and what you're doing to catch up this. So this becomes an important line of growth for the company, medium and short term.

Well, thank you, Lucas. Well, could that the first question is not the implement of semi trailers and about new technology and so forth. So I pass the question to Sergio and Cesar, but truly the point that the market is asking a lot. Yesterday, we attended the conference, and they started to ask this. How much in addition to product, we are truly becoming a platform that might be possible to offer it to the clients and including competitors, [ Marcelo ] and [indiscernible], please?

Well, I will start answering Lucas. Thank you for the questions. And [indiscernible] will join and give his point of you, if necessary. First, your perception, it's very clear and you read things in a very clear way. There are those technologies which are more close. Let's say, if we could rank all those strategic plans, there's no doubt that smart materials have priorities and impact, which is higher. For us, then embedded electronics in the equals. But there is no way we cannot be part of this. If it's not that important. So we are including this because we cannot be out of this. So today, as an extent digital world, all solutions talk amongst themselves and talk with the vehicles or we will talk among themselves. In fact, I've already talking and talk with cities. Therefore, we must have perhaps products or platforms that will allow us to evolve within this [indiscernible]. So software development, it will be vital. That's why we hit the development of DP, so we can have more power regarding solution development [indiscernible]. [indiscernible] we are growing in the own open ABS system, but we don't have intentions of becoming or competing with all the integrated driving system hours with directions of operation systems and controlling a substantial share of these of the future. These proposals there exist on the side of big companies and worldwide companies. We believe these companies in this new world they will have to control something if they do an outsourcing of our technology. What will they have left for them? So they will have a huge added value control. So we want to have specific solutions for our products and specific solutions in this space that will allow us to go hand-in-hand with assembling content out mobile companies. It is noticed by the automobile companies as a threat. We don't want this position. So I would say the main deficiency, according to my point of view and [indiscernible], feel free to pose your view this need, we have more competency in the development of software and DV and that worked on supermarkets, benches and airplanes, a strong group that's alike to our tech group that very competent for the industry. It will be a cool thing. So even fighter jets included. So I will at. We don't want to change the space. We are occupying the industry. We must be updated to keep ourselves in this space. So most players we have in a way embedded in our technologies. In fact, there are players which are big. Some are big clients we have. If we are not prepared and updated tech wise, understanding the impact on opportunity related to electrification of those companies regard -- components regarding materials, we can go without saying. So we must be updated. And if we don't use the expertise that we have white comps is not within [ Fastly ]. [ Fastly ] has a competence in materials since its first day, we have brakes and parts. It's not a composite, but it's a material. So a high level of complexity. So this technology, we sold this tablet within the brake pads also included. So we are without part of this part. We will be sitting behind it or at the bottom. So we want to keep on sitting on the front seats of this business because we are sure that the auto industry will change basically, but not exclusively, the directions we are pointing towards.

Next question by Victor Mizusaki.

I have two questions. The first one says, you mentioned several fronts of innovation, new products. So my first question is what you see regarding difficulties in a go-to-market strategy of these products. Also, as we mentioned regarding the issue related to the hub price, is something important. Your client will not only look at payback, but price. And the second question regarding this, thinking about materials, how do you see the opportunity of expanding for out of the automotive sectors?

I would say there's something we cannot evade. And we even have an in-house name for it. Perhaps not the best one, but answers part of your question. Yes, we still live with [indiscernible] buses. There are a lot of new things, and I was just saying, I think, with [indiscernible] during the welcome coffee that we -- when we reach to validate and present a solution, we have a framework of validation. We present to a certain client, perhaps our client is still one of our bigger industry. So the simple space of validation that repeat itself to whom -- what is being said because it's new. It's there. It's a challenge that is well addressed amongst our plans, and we are not in the [indiscernible] yesterday. We need new things. We have to respect cycles. The automotive industry and overall compared to the industry, it's a traditional one, very conservative, so steps of firm. So we have this address and for us even because we lived with this was dealt at an easy way. At least, of course, our expectations to be able to place it faster, but we have an advantage that perhaps some of our competitors do not have. We have an in-house captive market, which is the automotive decision. An example of the first [indiscernible] solution. The first was handle implements, the second[indiscernible] other interested clients. So I think we have an advantage of embedded, so [indiscernible] implements first client. So I think this is the advantage of in-house client and relevant point for our new technology strategy. Of course, there are those things we have to visit, other markets, clients, and we are expanding. So I will answer your last question, I was dealing with cosmetic industry because your solution was understand by the solution as important. So it is a bit out of the [indiscernible] doesn't have to limit itself. If there's opportunities, let's look in brace, and it's a huge big player, I cannot speak in details. We have a nondisclosure agreement signed, but these guys want to see how this technology can help. And this is walking forward, I did know -- did I answer your question?

Yes, Sergio. Thank you. The active demand is so demanding then perhaps the outside. So you have to be very -- it forces you to be good in price and cost. Well, very good. Thank you, Victor, for the question. Now following, we have Gabriel from [indiscernible].

Just one thing. Now regarding Randon's smart telemetry solutions amongst other solution. I would like to know more how do you think it will be the development of this long-term implementation and perhaps confirming the moment we are is going to be a deployment throughout timeline, how it can to be -- just to have an idea.

I recall the Randon Smart launched on the end of the year. We have [indiscernible] there leasing. We have jointly handled smart coupled in this solution that says a fee-free. Well, first point I would like to place, of course, the strategy of Randon Smart has a focus on the marketplace, but we also understand the need to speed this process when we started to think forward. You cannot bring a solution of leasing of products without considering some control, what's happening with them. So again, taking your answer as a link, we are a big client by ourselves, and we understand as present today. You are in the market, but you have to have your product talking to your clients, the end users. I'm not talking about the drivers. Our product helps the driver, the user -- the end user, but it's also support for the management. So it maybe I'm being very bold, but what's very valuable is not on the horse is on the lorry. So I have to understand the product is behaving this way, guaranteeing that if you perform correctly. There will not be a failure on the road where there is no access to maintenance. So having this type of intelligent aspect, I have a feel that if you compare what you have in mechanic courses, you will have a lot to go on concern availability of data. But it's part for our business for our clients, mainly. So the objective having the client is using -- taking the limit, taking the most of the products of that resource is paid for. So it's an asset, it's availability. We have to prevent, it's something that is very important if you have a product on the road.

There is something else I'd like to add. There is a change happening in the industry, mainly what refers to big logistic companies. They have an environment that's more favorable for the product with the smart value that I say, the big logistic companies or shipping companies, they have to take care of their product, the iconic horse and truck. So the trend is having a big split. It's not only the horse or all the time on the truck. It is much more expensive. The horse is much more expensive. So the truck may be their stop for discharge. So let us say having the separation, the control that's done via big training associated to the mechanic horse, you see we're sending the trailer, we have two things here. The same trailers can be used to and this is the ability and more viable for the shipping company is to do the management of the product. It's happening now in the background in a way. That's not so rapid, but it's happening.

Thank you, [indiscernible]. Before carrying on with Q&A, a question that's always placed from the part of the investors: Maybe you're considering that there are many fronts where you can act and invest, what you do the placing of the capital? How do you do in terms of allocation? How do you do the leverage? And what's the decision for the investment? How do you manage the investment versus the available capital? If you want to comment, it would be good for selling the price in ducted capital.

Thank you for your question. We always look for balance between financial discipline. That is the leverage and carrying on with growth; organic growth and inorganic growth. So placing the capital is basing on criteria of prioritization. So it's formed by our Executive Board and the other components, the COOs of the verticals. And it's important when you are taking a decision in the Board committee, you are, in fact, considering what's better concerning prioritization for Randon Corp. So we are taking the chance to do the management and very well, not only with the capacity of doing everything simultaneously, but we give priority along the cycles. That's what we do with the parity maintaining the financial discipline. Resource restraining is also showing efficiency of course, the projects, the first cut is the adherence to the strategic promise. As Sergio has pointed out, our avenues we take in terms of growth. The first startup, the decision is the relation of this project concerning our strategical planning. Unfortunately, we have just time for one question. We have another Q&A panel later on. We did not have chance -- if you did not have a chance now -- next one will be there for you. So at [indiscernible], can you hear me well? [indiscernible] for the event, very interesting. Seeing that the strategic planning is done with master topic for you. So when we consider the Randon as a group is always a reference in innovation, in new products, the best. The example that you've seen abroad. The question is concerning the exception in the domestic market. Looking for new geographies maybe it's a strategical reference as well. What's the perception abroad, in mature markets. I would like to understand was an increment launching of the pre-mode less expenses with metallic parts. How has it been accepted in the market abroad? If we can have a second question as well, concerning the seat. We are [indiscernible] and the business model is it for sale or it is for a leasing model in -- I think that in the future, the role is important to do this equation in faster way.

Okay. Good questions. Thank you for presence. And this is a challenge, accepting product. We are globally growing. It's not a market like the United States, not the domestic market. We have the challenges in the foreign market, but it's a winner of opportunity. We have no prejudice you for the questions. In fact, the more we innovate and be disruptive, the better for the implementation and exception of the product. We always mentioned there are 3 phases: the adopters, awareness -- it has to do with ESG. And these are the companies that are there focused on ESG and I adopt the solution. And after that, [indiscernible] is clear. So you see the adoption in mass -- mass adoption. But it's hard. What we can see is that we try. As Sergio has commented, the foundry, the nano particle, the challenge we have. We have to have the same way of the hub concerning in the United States 85% of the trucks have aluminum. So the market is being transformed to reduce the size or the waste, sorry, to use aluminum, it's happening there in the United States and [ aluminum ] is much more expensive than the traditional material. This is our focus, our objective. The strength that you do to convince the market it's already -- the aluminum hub is already developed. So it proves that it's done in this way with nano particle. It has a performance that is [indiscernible]. It's costs us less. So it will be easier to be accepted this rate. The segments abroad concerning the remote. They are very conservative in the United States. When you bring solutions that are very interesting, they may smile at you and say, Okay. I'll buy 100 units, I'll test it for 2, 3 years if the operational cost is correct, I will buy more but before that, no. European people, they go deeper with new technologies. They have another behavior. So what we want to implement is finding ways and answers to have this time shorter. In 1, for instance, we learn that time -- or maturing time is disruptive for validation, et cetera, it's bigger from the part of our clients and what we have internally according to our expectations. So in the United States, we are just breaking paradigms. You mentioned the assembling. Okay. We have 2 or 3 surplus of the semitrailer with technology that is very well advanced. We have it according to the American standards. It's happening. They are trying. So maybe the necessity over the time, people will be more open to validity of this product. We started. It may not be 100, 200 units, but with 3 units we are operating with modern stuff. So we are progressing new products. I will mention that in the next quarter, concern our modular platform which has a set of advantages, it is a break of [indiscernible]. It's a way and opens [indiscernible] to use all these materials that are alternative that we eliminate in welding and so they're protected. I don't know if I answered the question the way you expected, but it's always hard. The more you have disruptive process, the modern the protection for the market. That's the second question. [indiscernible], it could be a vehicle or [indiscernible], let's say, in case of do you have [ any ] information about this? I believe I already answered. Okay. Thank you, Carla. So it's -- so a round of applause for them. Your participation as a [indiscernible], we'll have more opportunities of Q&A in the end of the next panel, okay. Now we have a small break and we'll come back with more content to you. Thank you. Therefore, those that are here with us. [Break]

Okay. We are back with the transmission of our Randon Corp, 2023. And I will now start on the sequence with the questions. This is an interactional moment with you. Please prepare the mobile QR code on the screen and I will place the question, and you have around 30 seconds to answer them. We will follow the results together. Let's start. Ready. At home, online people. I don't know if they are at home, but they are online. So let's take the participation of them as well. And the first question is, how do you classify the present moment, the market moment for the coverage of capital good? How do you classify -- we already have answers. It happens very quickly in the platform. So the alternatives positive with good perspective, positive with caution, [indiscernible] negative with a bias of improving or negative. So some time, [indiscernible], let me know the right time to restart. How do you classify present moment for the market, for the capital good companies? So we have more or less a result. 45%, okay, it's going up and down. classifying as positive with caution. Good, next question, in your view, which of these growth avenues you consider the most important one for the future of the company? In [indiscernible], which of this growth avenues you consider more important for the future of the company? Reposition or replacement internalization. I've not seen it well, please. Massive concept of ceremony that does not see well. So innovation, ecofriendly products, carbon footprint, digitals on financial service or other alternatives or none of them. We have the answer with more votes, 46% internationalization. Good. Third and last question of this round to grow, it's necessary to invest. It means more leverage in terms of finance. Historically speaking, M&A, [indiscernible] and the capture of synergy was the level of leveraging for the next expansion cycle. Maintain the same level, close to 1.5x EBITDA over the last 12 months, 2x EBITDA of the last 12 months, 2.5x of the EBITDA of the last 12 months, up to 3x or up to 3.5x over the last 12 months of the EBITDA. Let's check. The answer is voted, 51% up to 2x the EBITDA of the last 12 months. Right. Thank you for your participation and carrying on with our event, we'll talk about the pillars of -- diversification pillars of Randoncorp, so will invite again Sergio de Carvalho, the CEO.

It's not only you that don't see well, I'm with you, I also don't. I'll talk a little bit about the diversification pillars. And what's good was any news. What I plan to talk. The content has been approached by server, so I'll skip that part. I'll go faster, to other topics. Carolina, you don't have to tell me that I'm using most of the time already. So we have many projects. We've talked about strategies, many projects are happening. We've selected some of them which are with more impact, more transformational to share with you. The way to see this slide is in the vertical way. You see our units. Our business verticals, the assembly and the automobile companies, the auto parts, the financial services, digital services and advanced technology area. In the horizontal, you have progress that there are linked to products market and down there associated to governance. So in the case of the Auto build companies and assembly or whether we use a modular program, as an example, Randon SMART has already been explained. And the control in the company and the new organization in the vertical of business, we are enthusiastic about it and like to share it with you. Concerning mobility, we will talk about Composs, the energy, auto [indiscernible] and the exposure of the power housing and abroad and with a new trademark with the new parts of the mobility and the merger with other companies. Sergio has already mentioned, and what we will not talk about is the expansion of portfolio. We are not free to discuss it now, and internationalization of the company and the expansion concerning replacement and also in the agri sector as part of our [indiscernible] concerning auto parts. And we will talk about allocation and has [ skills ], that's our Randon Bank with services as a service providers, advanced technology, Sergio has already mentioned and will go rapidly considering NIONE where we have around 40 projects for FY 2023. I do you not mention that because it's not permitted yet. And we also have the part of batteries that we can discuss. That's what we've planned for this section. Starting with the [indiscernible]. Let's talk about our platform, the model on the program. If you prefer a modular program, okay. So new modular platform. [Presentation]

This is modular platform, our modular program we have presented [indiscernible] and it was mentioned the last time we've met. And this program for us is transformational program because it reduces our manufacturing costs and it's extremely important in this set and several optics. Instead of produced manufacturing, a big product with lots of welding, difficult to handle. We're doing really with smaller components. Easier for use to obtain productivity gain. And it improves for our clients, [indiscernible] huge reduction of weight business case for our clients, it's more attractive. We don't have to invest on capability inspection. You have to expand on a current platform, just the painting of a huge set already assembled is very expensive to expand capacity here. It is small environments in order to paint the parts. But the paint is just 1 example, the cost and investment linked smaller regarding this type of concept, smaller logistic costs. So we manufacture the basis in some places of Brazil, and we send them to different places to receive the trailers and the body, let's say, of the product. Imagine the logistic cost of shipping these bases, even though if you have 2 or 3 stack, it's a very high cost. In this case, you have the components and assemble is done close to the which segment or end client. It brings more flexibility. It's just like a level game. This -- the pieces -- assemble differently. And therefore, it takes you to different options. So this product is under production since the beginning of this year, but in a way which is an [indiscernible] so we have important investments made this year and next year in order that we can have a production step or written very good. We have units in Chile, Colombia, and we just launched the [indiscernible] site with this new technology, so you can see the weight reduction, which is a big advantage for our clients. And if we have all the 30,000 national products. We manufacture more than this today, but on domestic market. This would be a reduction of 25,000 tonnes of steel, 1,250,000 of diesel leaders on the shipping of raw material or 25,000 tonnes of load per client per trip. If each of the 30,000 products were used in this, just to give you an idea of the potential this has. I talked about flexibility. So a chassis in different setups, this possibility of assembling and [indiscernible] flexibility is higher, but logistics -- wholly components like the [indiscernible] to contain less action to export and this will make easier substantially once live. And the last product is Sider, 1,000 kilos light. It does not use welding 70%. We didn't eliminate 100%, but 70% of it. And I'm showing this presentation, a huge advantage of the structure that enables to use all of those technologies or different materials that Sergio has mentioned here. If it was welded, it had to be still with steel. But here, we can screw 1 place all the bars in [indiscernible] to use composites in this way, and we will show you a bit of this. Now we talked about Randon SMART. I think we shouldn't address further, both for fleet management and maintenance management. All this was quite well addressed here. And also in addition to all these advantages, we believe that the knowledge of the use will enable our engineers to project products more fit for use and information about load, use, roads and so forth in real time and amount higher, not necessarily real time, but higher amount of pieces of information, allowing us to engineer products that are fit for use for this type of application. So -- as I mentioned, we are heading forward. We are not selling more Randon SMART for joint and other clouds, lack of semiconductors, semiconductors is lacking. So for the plan and foresee of operation. This software is one that we disclosed at [indiscernible] where a big manufacture of European trucks that we assess. It's at the top of the list of being the best truck. So our solution and said your solution is quite superior than ours, which made us quite proud of what we are doing. And all this will be commercialized through our automobile company vertical in the project as we showed. Now going back to several group 4 or 5 years ago, we thought this journey. And in terms of market, we already mentioned a huge objective of vertical automobile companies going to U.S.A. with a bigger footprint. For all the reasons we addressed strong currency, huge market states, there are 2 new entities that are [ ACT and FTR ] they both entities controlled, not only -- they follow let's say not 100%, and there are the port of containers, which followed differently. Uniting both we are talking about 400,000 semi-trailer per year. So we reached miserable 5% of the market, 20,000 products. So it's a huge market. But adopting the strategy of crawling, walking and then running, we have presented this during the last time we met, our beginning was through the acquisition of Hercules and exports of platforms to the states. Focus on niche segments where there's money and don't want to go after the volume, but we would -- we want to go after the margin and we did it. And becoming a [indiscernible] learning how to do in this current country the first phase. The second phase, we want to expand the portfolio of products, still focus on niche segments and further phasing. Some news in the future, then we want to enter the mainstream manufacturing, how volume -- value cost we need a distribution network to do so. But we don't want to be part of the American market, like the American companies do. Our wish is to place different technologies. We want to place a level of verticalization, which is bigger than what they are used to. They're very horizontal there. And also with more automation and modernization, more than manufacturing plants. We bought Hercules, which is going very well up to date by the end of the first quarter, 1,729 units plus 1,250 export units. So projects that one very well, we will launch the products using the premises of Hercules and expand its premises also that we are revamping. So the authorizations are going back to the -- to new time [ 130, 140 ] years like this. So we are investing substantially to improve this operation with Hercules we keep looking for the right opportunities in the respect of merger and acquisition. This is our intention for this market. And the last point regarding our automobile vertical has to do with governance, which has 1 month organizational structure of our vertical. [indiscernible], which is our CEO of this vertical keeps with this position. He works intensely on this project. But our organization -- recall guys, this is the mother company, 74 years of history, and we're organized it in a way which is very conventional, group of engineering reporting to leadership or operations likewise, commercial likewise. So all the control of P&L directly would go to the hands of [indiscernible], our CEO. But the business now in 2017, BRL 1 billion. It's now business, BRL 4.5 billion. This is the business in a market highly complex, and we fit for use our organization and [indiscernible] what we have on our verticals, and I was talking the paradigm successfully because we have 74 years of history. Always operate in the same way. So we believe we -- through this new organization where we have two responsible for the dramatic market products, high volumes and they are the one focus more special products. We have another leader P&L for the foreign market and the P&L focus on railways and trailers and other products. And we also have the replenished or replacement part, which is more corporate [indiscernible]. He's the leader will keep on winning response replacement. With this, we give more attention for the market, we are closer to the market and speeding up this development and adoption of new technologies and high speed, which is very important in this type of segment. We then compete with those companies that have different protocols. They don't have our standards of governance, our war is more difficult because we have standards of governance that most of our competitors don't need to comply with, but we have to increase our speed and reaction in market scenarios, and we will reach this through this new organization we have disclosed, and it was very well received by the whole market. Well, now talking about our movement control vertical, which is mobility, several product sales has already explained better of composite materials, those projects in production, other projects in the pipeline and -- this is the first product through 65% reduction in weight mass and also now the next project to link the automobile [indiscernible] he mentioned. So I will go briefly and this picture or layout has the purpose of giving you idea of the potential of these new technologies linked to materials. So this is a picture of modular platform where we do it, we can place bars of this product in composite material -- but not composite material that's our competitors can't do. They do have a platform like this, we can do the same. Our advantages that our composite material has the durability and resistance with proportional prices and more accessible. That's what we managed to obtain with compost. Composite material will have it for 30, 40 years or even more sales and help me here -- for a very long time, but innovation we brought is that we managed to create these materials that reduce strongly the weight and with [indiscernible] very reduced the relation cost benefit we changed. This was the biggest development we bring to the game. So we can change the central beams. We can change the bars, composite material in a bump, on the hub of roads, nanoparticles, the drum and nanoparticles [indiscernible], we have projects advanced in this sense. With all this, we managed to reduce in 44% the weight of this set. This is a huge advantage. Imagine the advantage we have with this, and we will obtain in the future. And also, these technologies, we can protect it, and this is our major objectives here. A small film about compost. [Presentation]

For composites using our scale economy maybe. Once we bought 18 tonnes of resins for year, we buy 8 tonnes of glass fiber per year, so we had a scale economy resulting for the material friction, but more -- some more ingredients resulted in us reaching all this performance of having big advantages at a price that's extremely attractive for our markets. So this was mentioned by -- before. This is just the beginning of the beginning of the beginning, a technology within the 4, 5 big technologies linked to composite materials. And we have 1 type of component within 1 technology only, but we have some several other advancements happening. And what's happening is that of all big manufacturers of truck in Brazil. We have programs underway with all of them, except for one. But this one has colligation with others, and we believe that when the colligated or associated will have a product material and they will ride with us. But the headquarters in Europe or United States of these companies, they are starting to see this type of technology, not by [indiscernible] as an example, started here now, they want to take it over there. So we believe that this technology will fastly -- develop for the headquarters of this company. We launched our pads, energy, [indiscernible] energy the first pad developed for EV or hybrid vehicles this [ use is ] quite different. We see electrical EVs, all the electrical system to break so naturally this braking system on the wheel is cold. We will never reach those normal temperatures of operation because it's always cold. So cold pads, the brakes are not that good. So this is a different material that allows more efficient brake. Even if you're not using your brake pads on your wheels. [indiscernible] there's no transmission making noise -- engines making noise. So the action of the breaks of [indiscernible] is initial. So this is a EH Energy hasn't -- a noise system more efficient. And because this type of vehicle, the pads last more, so it will rust. It's the trend. So it always, it exits manufacturing with our nanoparticle painting that increases durability. We did not think this will be any champion in sales, but in terms of technology where it presents the pioneers and this solution, we will take you through different countries also. Now how to expert for replacement is one of the strong points of [indiscernible]. This is our platform [indiscernible] to expert. We started as a E-catalog, as I mentioned with Luciane during the break -- coffee break in fact. We pass through the list of products that is printed. Now we created a digital platform auto expert for this purpose. But technology has developed. And today, we launched the first project in Brazil mechanize where you went with the plates of your car and it will say directly what part you should buy. This is especially important because many times during the year, you used to say that you're the owner of such a brand and more than a year and so forth. Sometimes the braking system changes during the year. So it's not a piece of information and -- you obviously want to buy the certain spare parts. In the e-commerce is return of spare parts because they never buy the right one, only the mechanics does it. So here, you can identify exactly what's the spare part and the software, this app developed also in order to say where do you live? You place your postal address, and you can find the spare part in your neighborhood where you are. You don't have to see where it is. And so from then on, it's a progress because the parts you go to your mechanics, if you feel like subsequently. So auto [ expert ] is a success case for us. You see the amount of hits that people refer of their use. So it's fundamental mainly for the mobility phase and every Randoncorp companies -- they are using this program. Firstly, composite and other companies that work with replacement. The market is carrying on or growing, the fleet is getting older, so it's necessary to do the replacement so the commercial vehicles, et cetera. We have this experience, the first space. It was a successful one, the first capitation was in 2016. We have many business and these transactions are a success case as well, very good one. And we recap and we will now follow this new journey. And in U.K., for instance, technically speaking, it's a geographical area that is different from the rest of Europe, Continental Europe. The fleet is as weak as the Brazilian 1 almost us. And so we will go in [ blue collars ] there and we are sure that it will be another successful case. Our objective is carrying on with this expansion of our powerhouse -- replacement powerhouse, mainly in abroad -- in markets abroad, but we also consider opportunities [indiscernible] as currently speaking. So Mexico, our neighbors also in Europe. I already mentioned Asia, we spent 3 years without going to China. It's not our priority now, but we'll go back there, sometime. And we are expanding concerning services using the know-how that we have with in powerhouse. We recreated this technology, this management that we have a manual, and we want to present our initiatives via the governance. We have further mobility it has been developed and it's similar to our background in Randoncorp. The company that works with friction material that has been modified over the years grew very financially. And there was some confusion in the market. Fras-le, what does it mean? Is it friction material? Or do you want to see -- Fras-le is a company that's [ owned of ] Nakata, [ et cetera ]. So we have the need to communicate better. That's why we stability -- Fras-le Mobility that represents the parent company. And every time you see a trademark with the word Fras-le does not mean only friction. Fras-le Mobility is the parent company. So all of them that you see on the screen, all over the world, they are part of this portfolio of Fras-le Mobility. Now what refers to product, the [ ET ] system, electric traction system, Sergio has placed that. And the system, as mentioned, it's advanced technology if you compare to technology shown last year in Germany. We are commercializing in Brazil, we export the product to Chile, mainly using this technology. We have projects associated to lorries and buses. And we have the [indiscernible] is a full vehicle and is used in the restrained environment and growth environment. All the advantage of this system is already elaborated. They are already elaborated very well. So [indiscernible] concerning our Suspensys, and we launched 3 months ago [indiscernible] for the manufacturing of [indiscernible] and battery as well, sorry, [indiscernible] and batteries. [Presentation]

We launched the investment of BRL 60 million in this operation the same year. This was a gradual investment and the intention is producing a mass up to 1,000 sets. The sets are traction system with the electric parts and the batteries in the system. We also have materials that are very innovative in our N-Series has been placed here, [indiscernible] using normal technology in case of curve that we have in this case, using aluminum in the hub as they use in the American market. But any other use involving that the alloys, we can develop with better performance. We are ending our resources, and we will present it on research and we'll present next year. Internationalization. Clearly, the United States, you have projects export starting from Brazil and carrying the opportunities that will be in terms of auto parts in the United States. We want to expand in the agribusiness. We have already started around 35% to 40% of our revenue in a group that's linked to agribusiness, specific focus on the agribusiness, let us say, auto business where we want to be 10% concerning the parts in the agri segment, working with all the suppliers, Holland [indiscernible] et cetera, [indiscernible] and all the implementing companies. The replacing markets, as you note, in the first panel, we presented the drop of revenue. But let us say that the auto parts grew and increased and expanded our portfolio, that's the objective in every vertical of business. And our service area, digital services originally it's Randon Bank and the Consrcios. Now we have the insurance companies, [indiscernible] is a company that you heard about in the launching process and also [indiscernible] that was acquired before the company is domestically speaking, also services with new technologies, supply technologies and several areas of action are considered. And going ahead, Addiante can be, as the name says, going forward, Brazil is [indiscernible] what refers to range of heavy vehicles if you compare to the United States, the segments of [indiscernible] box, 30% of the American market the transactions are done via leasing or rental and segments like containers, 95% of them are via leasing. Here, we have a joint venture with Addiante and actually with agribusiness, [indiscernible] box, and we have a very strong service here. Our work is with part of the plan already prepared, the employees required. The expectation is in 5 years' time, this business will be very, very big. And last but not least, acknowledging the advanced technology, the vertical one, electronics, embedded electronics in target materials 40 projects for this year, approximately, we don't have how to approach it now. But let us say for sure, a very important point, as Cesar has mentioned, 75 projects associated to 18 different technologies, segments that we cannot share details with you now. But on the graph, you see the presence and promptness, and some of these businesses are commercialized already. Some of them are under production. Some are crossing this line. So the projects are advancing. Any time we talk about it, the number increases. It's a potential increase, and we are very sure that this growth will happen, and it will be a giant differentiation, a mammoth business for us. My last slide, just to summarize, we talked of our future view, the planning and execution. What we want to pass as a message to you is that this experience, there is a strategic plan. And we know where we are heading to, and we have been very happy to say that the execution of this plan is okay. We're delivering everything we promised. So very important projects internationally speaking, in [indiscernible] North America, all the verticals, industrial verticals of business, not only the automobile companies, but -- not only the mobility, we have all the news that we are implementing reposition -- replacing of parts that were important that we've seen in your comments, diversification is also very important. We want to carry on with this growth. We knew the 2003 (sic) [ 2023 ] would be more difficult. It was clear 4 years ago that this would not be easy, what would happen. So it was part of our plan. So again, we are seeing quite concerning what we supply to you, innovation and competition. And also trust in our company. Thank you very much for your attention. I pass the floor to Carla.

Thank you, Sergio. But stay with us because we have a sequence now concerning interaction with the audience. I ask you to like, use the mobile, the QR code and also on the [ badge ]. What's the first question? If I do not see, Sergio helps me reading it. First question here, with the growth of revenues and margin. The -- what's below this historic media. This indication and the valuation of the paper. Let's see or the room alternatives for that. So depending, on the domestic market, the cyclic innovation level of governance improvement of the company as a market. Brazil risk all the alternatives -- so 30 seconds for you to answer. So now what are the factors that you consider that may impede the innovation of the role of the company? What's the action here? I think that we have the answer, Randon Companies associated to cyclical sectors and concerning stock. Over the last few years, we have practice recommended concerning governance in your opinion, what should be the prioritized [indiscernible] of corporate governance? What's the priority? The alternative, only common shares, expand the committee, concerning the assistance to the administration in terms of advice and so take a long of 100% accessing a new market. Now we have 85% access to new market. So I thank you for your participation and we now start with a new moment, Q&A. I invite Paulo, Cesar, and Esteban to take the floor again. Reinforcing that you can place your questions via the formula that you have, the QR code with the participation of who is online and who is here with you using your budget. So Esteban takes the floor again.

Thank you, Carla. Now we regain with Marcelo Motta that was waiting in the last section. So Marcelo, please place your question.

Two questions. The first about automation that you commented in the first part of the event. I believe that we have 2 or 3 plants in this robotics. So understand if you have any internal study, what will be the potential of -- in other plants? And in terms of investment, what would be the potential of economy of cost? And a question that is related to the capital structure. And the first question that you had is research. So it could be a set of [indiscernible] corp. Today, you have several segments and you do think that in long term, you can have any spin off just to capture for bigger companies that will go faster? Let's say, in this view that most of people have that having been a cyclical company. So let's see a corp with some spin-off of the initiatives, okay?

Thank you, Motta. Fantastic, the points you addressed. So Cesar, the first part of automation you answer and then Paulo will answer the second part of the question.

Talking about automation. We have some, let's say, fixed rules. No, but we have been working when we have entry new plants with new product concept. I wouldn't say it's not full automated, but a high level of automation. So if you visit [indiscernible], it is already automated operation. The new operation that we set up some months ago, perhaps more than 1 year. Here in [indiscernible] as Sergio mentioned, it is [ borne ] fully automated. Therefore, we have worked in this direction. We give priority to projects. Yes, we have [indiscernible] need many times connected to the demand of that unit sometimes in expectation of fast improvement of the operational costs. But we have a team that work before, let's say, yes, before the process of building automation processes, which is [indiscernible] that utilize our plants. So we are using this type of tool in a prework to make the decisions of where we have better games and direct earmark our energy to speed up this automation process.

Thank you, Cesar. Now Paulo.

Thank you for the question. I think this is a very pertinent question. So how is our mindset regarding our debate. First, today, we have 2 companies with -- we tried listed. So last year, we needed to do a follow-on of [indiscernible]. We were challenging ourselves. It was the [indiscernible] world of [indiscernible] momentum or thinking of a different structure within the same entity. And at that time, we thought these distinct avenues of growth business, perhaps to capture more value different shareholders. We decided to do the follow-on and uphold both companies listed. Another important example is [indiscernible], an investment where we bought it was built in and born in a different format with 2 partners, each one with a stake of 50%. So we toppled the [ Paradigma ] in our way of opinion, this makes possible that in the future, we can think about bringing another -- more partners. Now looking [indiscernible] on the trailers and auto parts. The beauty of the business is in its verticalization. So our mindset is related to this verticalization. So we -- at least we can say today in the middle term, we see no possibilities of changing this design, bearing in mind what we built throughout these 74 years and the growth avenues per se. So we analyze each case and future projects. NIONE is one of them. We built the format that even to divide future risk, we could perhaps in specific projects, bring other partners so we cannot generalize what we do. We look at the portfolio in each one of the projects.

Thank you, Paulo. Now, Motta, thank you for the question. The next question is by [ Felipe ] [indiscernible]. Please take the floor, [ Felipe ].

So congratulations for the event. My question is, you presented the strategies of the company for North America. How do you search this for the region? [indiscernible] in Mexico and even Randon, as you mentioned, the operations going [indiscernible] perhaps it's a feasible operation for this region because it's cheaper and closer to the USA.

Perfect, you mentioned a bit. We have an operation in [indiscernible] and Suspensys recently moved to [indiscernible], which is a site more opportunity in our belief. And Sergio, would you like to address is Mexico is part of the expansion strategy of USA? And what could we do in that region to optimize or speed up the penetration to the American market?

Well, no doubt, Mexico is part of our strategies. Suspensys, as mentioned, is there. Fras-le Mobility is there. Also, we have [indiscernible] its radar. But we would rather at Randoncorp to focus more in USA. The reality our 3 geographies, composing North America has changed. We had NAFTA, the free-trade agreement that we call USMCA. And with this new agreement, we lost several advantages to manufacture in Mexico. So labor must have at least $16 per hour. So Mexico, you went there because labor was more interesting there. This does no longer exist. So there's a feeling by American -- manufacturers in U.S.A., very strong, not against Mexico, but especially because of China. So this movement of -- by American manufacturer, it's important during the talks in commercial talks in North America. So we do believe that being there, manufacturing there and say we are made in America will bring us an additional benefit to our companies even though that several components, depending on the product we are referring to are those coming from Brazil. So we don't have that sort of rejection that the Chinese product has. So the China subject is quite important because it's one of the few and only subject that can bring the liberals and conservative parties together and they go hand in hand and say we agree with this. This is so rare, but this view that we must have a market more strong and going back to invest in strategical projects in that geography. In semiconductors made in U.S.A. to remove that fear from Taiwan, the control of Chinese is very strong over there. So yes, it's a long answer. Mexico is important for us. We have more plans for Mexico, but the biggest impact on our side will be mostly the U.S.A.

Perfect. Thank you, Sergio. Now we have 1 more question by Luis [indiscernible]. Please, Luis.

Two questions. The first one, I would like to address further the dynamics of truck prices, influencing the sale of Randon Implements. We had this shift of technology, strong increase in prices. I would like to have a knowledge of your side regarding what can happen during the next months regarding trucks prices and the impact perhaps by selling implements? Second question, if you could please address further the challenges you are facing regarding acquisitions recently made. We know there are opportunities abroad in its markets, but I imagine that some challenges will prevent a fast growth, as you would wish to implement. What are the main challenges and perhaps opportunities also?

First, [indiscernible] thank you. I think both questions are addressed to you, but very important question by [indiscernible] because [ Alo ] published the news of [indiscernible] launched a new line of products where the cost of prices was not as high as the previous line, the launch in [ Fiat ] had an addition of 25% on its price. This new line, just 15%. So this is a flag regarding this question.

Well, I would say that's the way of thinking. We had the event of [indiscernible]. And we do believe that much of the manufacturers of trucks were too eager and the addition in prices was huge. Two of these manufacturers were more -- they held their horses, let's say. So they started the year with their portfolios and their wallets filled. And the market shows, I'm not going to pay that much. I will wait I have these 2 sources, these trucks are more accessible. And this process -- this normalization is already happening in a clear way. The way each one of those its approach changes varies. One said I could reduce my cost and I can offer you a truck at a lower price, I can change -- do some -- any changes and reduce cost, but the point there, the key one is that there is a normalization of fit for use of prices, and this is happening. And this is very good for our segment. Now -- and for -- now the second question was regarding -- challenges regarding M&A integration, the main challenges we have faced. Well, I would say we have 5 business verticals at different levels of maturity regarding M&A transaction. Our movement control mobility because it started first in than a higher amount, I would say it has a domain on this process, either being the negotiation process, defining prices, the process of developing synergies because in our book without it, we don't do the transaction. It's not the value of closing or multiple of it. It's the post closing that counts, and we work strongly on this. And the integration per se, [indiscernible] use buying something beautiful and say I'm the one playing the cards here. Because with this, you lose talents and big advantages will be lost that these companies had. So example. Strongly, [indiscernible]. We looked Nakata and say they deal with the market in an exceptional way. It's a huge name. And they have a relationship with the vendor base, not client relationship but partnership relation, they have a marketing, which is very strong. We must learn what these guys are doing in addition to the words and presentations in PowerPoint, truly learning things. So what we did, we will not change several things. During this first year, we'll keep on like this acting and then we will harmonize, understanding better. And then when we have learned what they truly did good. These good things we brought for the other part of us. Likewise, the industrial side, Nakata was not that good. We got the expertise we had [indiscernible] Fras-Le Mobility. And we took this to the manufacturing operational dumpers. So the integration process is very important. And you have several elements we wish sometimes to say, let's take our people of ethics and think about -- they will -- normally we do this and procurement by so forth. All this had to be skilled in a speed where the acquired company can acquire, and it will not cause disruption. So the other units are evolving very well. They're going well. Good example on unit that did not have this experience of acquisition, which is a vertical [indiscernible]. We acquired [indiscernible] in U.S., very disruptive for us, and it's going fantastically well to more coincidentally on this subject, we have a meeting with our Board of administration, where we have to do a recap of 19 transactions we did during the last years, but the history over there is very positive. So we acquire and invest approximately BRL 1.5 billion during these acquisitions and the recurring revenues, BRL 2.7 billion, approximately 98% what we did is going so well. So as a group, we are well optimizing this process that's so critical. And as for the international side, which is the concern is regarding the awareness that works in Brazil, not necessarily will work well in other countries. So you must have this minimum of competence of looking and say, well, my product, the way of management here is fantastic, but over there, it does not work. So if you think it's going to get everything from here and place it over there, it's quite childish in spite of many doing the same mistake, you -- sorry, I just quoted. So we are going very well. We have -- it's a concern, but we have several transactions, many in fact. And we are going very well within this sphere.

So I think the track record of integration is one of the strong points and important point of our growth strategy. Now before moving on, I must touch a subject that many of you came to me and mentioned during the coffee break. It's a question of [indiscernible] which is regarding the new market, some asked if this question is not made, please pose it because until I'm fulfilling what they asked. Paulo, how do we see the new market possibilities of integration? Is it hot, is it cold?

Well, thank you very much for the question. This is a question which we don't have any concerns. And actually, we have to be crystal clear. So we always recall we have a commitment to evolving our governance. And this is evidenced by our compliance to [ CVM 506 ]. So to date, we have a higher compliance than those companies that are listed in the market. There is no plan in our side in the short and medium term to migrate for the new market. But we have this commitment of step-by-step keep evolving with our governance. Therefore, today, we have Fras-le with only one class of shares. And so particularly, if there's a migration, perhaps we would be a bit closer in the case of Fras-le, then Randoncorp. So as the first stage, Fras-le then Randoncorp, but these things can change because of several factors. But our commitment with governance involvement is up and kept.

So thank you, Paulo. Regardless of the category of new market or not. We are safe on knowing investment on governess of the company transparency. Now a question by [ Igor Araugio ].

Briefly on my side, one for Paulo, another one for Sergio. Now planning of the next 5, 6 years, how do you see high capital turnover? You know -- we know Randoncorp [indiscernible] of capital, you mentioned this. How are you seeing in terms of percentage [indiscernible] of the box you have today? Then I can say the second question.

Thank you, [ Igor ]. Paulo, you could start.

Well, we do an analysis of priority. We could not touch all -- move all the projects simultaneously. When we talk about organic investments, we do an allocation based on the generation of cash for that veritcal. So we decide by commitment of early part of [indiscernible] project. Of course, several moments, there are certain verticals that we are seeing in the auto parts and acquisitions. We made of founding companies that require more capital especially because they want to place -- be placed within the same standard of automation, productivity and safety, which is our motto. Now when we are talking about inorganic investments, we have projects in all verticals. And exactly, we hope within the cycle to grow in all verticals, perhaps, in some of them, likewise, the financial services vertical, we're talking about bank, Consrcios and we saw [ ABB ] or [indiscernible]. Perhaps we have to bring partners to share risks and be able to grow with a good allocation of capital. But we have projects in all verticals, and we will keep on growing, analyzing cash generation of each one and earmarking part of this generation for organic investments and inorganic investments. Of course, Fras-le set a different momentum because it is the follow on. So it has an important substantial cash amount, and it's important to keep on the journey of growth. That's why we have to treat it a bit separately.

This question complements [indiscernible] as question into M&A. What do you see in this strategy? What do you see in the new technology, the new markets to be excessive? Obviously, there is a question in terms of new technologies or new markets, what is missing to add to the portfolio?

Thank you. I think that in terms of technology, Cesar and Sergio talking about markets, but we've already explained the focuses in the North American market more mature technology. So it's difficult to foresee what's going to be necessary in terms of technology. We have our verticals, our directions to explore our technology. I don't want to repeat myself. The concept of mobility will change, the proportion will change. I think that some spoiler presented here was talking about electric mobility. It's not only the engine and battery. There are other concepts involved. Generation of energy that's not in this new matrix. We are researching a lot in this segment. It's not only repeating and insisting, but it's viewing the material was something key. We invested on that. And as Sergio has placed electronics is necessary. It's not our main proportion. It does not have the same importance of the materials, but it's also important. I do not see any other technology that is as big as outside this umbrella. I think that this umbrella is big, but it's on purpose because that's what we have to go.

Thank you. Sergio, do you want to complement about markets?

Okay, it's a comment that it's not about technology only, it's cooperation. We are crossing a period in an environment that is transforming very quickly. And we do invest in new product platforms that would last 20, 30 years. Now it's 5, 6 years, and that's more and more with a shorter life and we have to invest more. And we have to learn with that, cooperate more. So if you lack with certain technology instead of wanting to build it up at home domestically, look for people that can supply you necessity as long as they come and cope up. Looking for more cooperation is a theme that's so important, we have to cooperate more.

Perfect. Thank you, Sergio. Last question, [ Lucas Melter ] that is online. Lucas, thank you for being here with us. Sergio, we have the possibility of exploring the importance of replacing our portfolio as it is giving revenue in the movement control. So what the turnover movement. So using the vertical in the automobile companies and spare parts as well, so what's the ways of the revenue in these verticals?

Lucas, thank you for your question. The objective is the growth of the replacement in our [indiscernible]. The growth is for the auto parts as well. And the objective, the percentage, it's a metric that is very difficult to foresee because we will not put aside the opportunity to conquer new business that are different as long as we have success with them. So we will not tell people, don't quote about that. Don't look for that because it's more domestic. It's more the auto part, it's more the automobile companies, let's say, metric [indiscernible] the percentage in the international market, which are focused on we want to grow there. But if there is a big business in Brazil, let us say, unless a company that is in Brazil, [indiscernible] company that's big. Of course, we will try to gain that also, of course, it will interfere with the metrics that we're having abroad. But we have big companies in Brazil working with us. So it's difficult to pinpoint what's the percentage because it's very dynamic, and the first objective is growing. They grow in a robust way, so both. So every opportunity, if it's profitable, if it's good harbor and safe harbor. The expectation is there to grow. We're concerning mobility for instance, the control of movements, the vertical one. Each product that we sell to a company, we sell [ place ] for replacement as well. It's not that we don't like this segment. We do like the segment of the [ automobile ] companies, but product portfolio we have takes us to a percentage that is bigger when we have replacement. Of course, in the auto parts Randoncorp, it will not be with 80% of replacement, but we want to get 20%. Our [indiscernible] our target is having the present 10% and reach the 15% or 20%. So every unit has its objective of growth.

Perfect, Sergio, clear to us. I thank you all for the questions. Reinforcing that those that were not answered, we can use the [indiscernible] over the week to answer. And I pass on to Carla again.

Thank you for the participation of each of you. A round of applause to everyone. Thank you very much to the persons that placed the questions and took part online way. Now carrying on, we invite to the floor Lucy Sousa, Executive President of APIMEC Brasil for her message. A round of applause to her.

Good afternoon. [indiscernible] Brazil, analysts or the investment professionals, it's a pleasure being here with Randoncorp in [indiscernible]. I'm always happy to be with the meeting here with you, present and online ones, hybrid. And I would like to celebrate this remeeting [indiscernible] delivery, the activities -- 23 years of activity of [indiscernible] associate meetings with our association. Sergio, I deliver it to you and representing your team the time of partnership that we have. I thank you very much for it. Thank you. I reaffirm that you have to -- please use the form to assess and do the assessment of our meeting with lots of content, of course, you're being in the participation in the best of the year. So this form that you answer is very important to contribute to that. Thank you. Let's take a photo together. Thank you.

Thank you, Lucy, for your participation and presence. Sergio, [indiscernible], please. Now your final message. Please, the floor is yours.

Thank you very much for your participation here. Everybody that is online as well, those that are here presentially, we thank you all. We're at your service to answer all the questions as well and carry on with our dialogue. I hope that you are leaving the place with the idea that we have a planned journey for the future, and we are executing what we had and programmed and wanted to do in the [indiscernible] are performing now. This future journey is key, is positive, is cool. Everybody as analysts or investors, I want to do that with you. Thank you very much, and have a good afternoon, all of you.

Thank you very much, Sergio. Thank you for your participation, each of you, okay, fulfilled mission. And I thank the participation of everybody here for being here, spending this morning with us, people that are online that followed this program. And we also thank [indiscernible] for receiving us here with all the support and APIMEC Brasil. So now I invite you all to take part in the research that we have, you have a form, please fulfill before leaving the place and deliver that to the reception. It is very important to know your feedback in order to have a better program in the future. Online, you're receiving via e-mail. And bear in mind that our event has been recorded. It's in Portuguese and in English. This recording is available at the website, relation with investors, the randoncorp.com, in our YouTube channel as well. And we close our Randoncorp 2023. It was a big pleasure being with you. See you next time. Thank you.