SIMPAR S.A. (SIMH3) Earnings Call Transcript & Summary

[Presentation] [Technical Difficulty] [Interpreted] Sorry. Let's see now -- good morning to you all. Let's start the day, the right foot, inviting the company's CEO, Fernando Antonio Simoes. Please, Simoes. Welcome.

[Interpreted] Thank you, Fabiana. Thank you, everyone. Before I start, a big word of thank you. I thank God for the opportunity to be here. People say some people are lucky. I believe that luck is closely linked to God. And throughout our history, as you will see, we were very fortunate and very lucky also. We found good clients. We had a very good DNA, but we also came across very good people throughout those 60 years the company has. And for the last 12 years, some of you know, we've been going through a major transformation. Thank God. Very happy to be here. And I also like to thank you on behalf of our 36,000 associates for us to be here. It's because we have people now hard at work from distribution all the way to the other end of the chain so that we can be here to talk to you today. So on behalf of everyone here at the company, thank you very, very much for your participation. I know we have over 380 people here. The company has been going through transformation, and we are very happy. And this is a very special day for us. And I have to tell you, we have people here, some more, some less, but everybody nervous to try to do the best possible job in presenting numbers to you. Just as we relate to clients, we want to relate to client in a long-standing, long-term relationship. So I'd like to thank my team, who's been working hard for the past month for this day to present things the way we do it. And we are ready across 3 different pillars. Nobody made suggestions. It's everybody working on their own. The only guideline was to define who we are, where we are and I'd like to know if I were you, where we are going, where are we headed, so that's something we're going to be touching upon today. So thank you so much once again. CS Brasil -- we have a slide. And we also have CS Brasil CEO, João Bosco, here with us. And today, he is conducting that in a totally independent manner. So everybody is here to present our thing what we do in a very detailed manner. So this is our origin. If you do not know where you're coming from, you do not know where you're headed, we were founded 65 years ago by my father. He started as a truck driver. We diversified. I started working at 14, I'm 54. So I've been in the market for 40 years now. We are diversified in the 90s with business units within JSL. This -- without as a business unit, those -- we then -- we went public in 2010. So much more than the money we had a focus on governance, on a long-term survival of the company. When it comes to trust, our governance, and we are very proud of our family origin. And we transformed in a family company into a professional company. We're working on succession, diversification, and leading the business. So that was the main reason we went public back in 2010 to diversify. In 2015, we were still operating as a holding company, but also as a logistics company, but working as a holding company, transforming our BU and independent companies, trying to be more agile, trying to generate value and of course, defining the company's corporate structure going forward. This was dictated by our Board of Directors, and I'm very thankful to our Board for their guidance. And this was done to prepare for the reorganization, which took place in 2020. For the fourth time, we decided that what our shareholders decided, we would follow-on on their votes. So whenever we had anything from [indiscernible] they happen the same. So we provided shareholders with the decision or the power to decide, and we accepted their decision. So we created SIMPAR in 2020 with an independent company, 7 companies. As Fabiana said, you'll have to -- you'll have an opportunity to follow what's happening across all companies. So what happened in the past few years? We always look for funding at financial institutions in the market. So we couldn't get it wrong. We needed to understand what clients wanted, what clients need, what kind of services they need. Asset light or asset heavy, I'm not really sure, but our business changed. We have everything under the same umbrella, but -- and we learned how to acquire, how to buy and how to manage assets. If I may say, the company has been doing this for over 60 years. We only accelerated in the past few years. And for that, you have to have a close link with automakers because if you're not mine, you have to be together with them as partners. So when you have people buying, everybody is happy, but you need to be together in difficult times as well. That's what we believe in, in being simple and being humble. Nobody can do anything by themselves. Today, we have 36,000 employees, as I said. We have over 1,000 hubs across Brazil with client services for the past 10 years. We've become one of the largest groups in Brazil. And you'll see some of that story here today. And we believe that it is very important to look at the way we got where we are. If I may say so, you will see the willingness and the power of organization that we have and the ability we have to go even further. The main distinguishing factor in the company is people. People are important for any business, for an industry. But the service industry depends solely on people, and we do have excellent people in our group. and they fascinate the client. They are not an asset, right? Of course, everybody has trucks, cars, buildings, but people make a difference. And through people, we were able to create strong lengths with our clients. So -- and we have a mission to work as executives who own the business with a focus on executing our strategic planning, delivering results, which are sustainable. We're not here in passing. We are here to stay. And we believe that as owners today we have compensation which are -- compensations which are based on guidance from the Board. Compensation is based also on recognition and which are sustainability and profitability. And sometimes, it's more growth than profitability with new services and so on, but we need to have results. That's what fuel our business. We created a year ago, a program for partners for 10 executives. We want to have partners with us. And those 10 executives are here, and we want to have more throughout time. We want their share to increase the business, of course, in a very responsible, healthy way. The company will only change in the long run. So in the long run, those who are with us will be also benefited in terms of sharing results. So over 130 managers, who have variable compensation linked to their actions and a long-term alliance. So with those people, the company has grown, has expanded, but the roots, the foundations are there. I'm not simply the owner, right? The owner, of course, does everything, including work on the succession plan. So we have the guidelines here. We have culture and values, which are very strong. But we have over 88% of our people who say they are happy to be working here. If you contact the main managers, they've been at least 5 years with the company. So we grow. We have people joining, but we people who have been here with us for a long time. We have hired 11,000 people. Out of those 11,000 new employees, 50% [indiscernible] so this is a very well working machine, 4,000 of our workers were promoted last year. And we have a very strong training for our employees. On average, they train 6 hours a year, all employees. So that's how we try to make our business survive in the long run. And we have, of course, thrive to help our clients without losing our culture and our value. And that's how we are organized. Our governance today, we have SIMPAR, a company which are totally independent. So here, we have the 36,000 employees, CEOs, companies CFOs, each company has their own targets, their own objectives. They need to deliver results. We do not have a company generating revenue to the detriment of the other. So we have to understand deeply what we do. We're not buying power points, right. To have this presentation ready for today was a challenge for us, but we like doing it. We have 4 Boards for the listed companies, but we do have committees for those companies which are not listed. And I say that SIMPAR is close enough to provide support, to contribute and to make sure the targets set by the Boards are met. Planning is done by SIMPAR, but not close enough to hinder their advancements, their progresses. Today, we have 17 committees, and I have to confess that the Board makes a difference. It is very important to have a board. And our Board members are very complementary in terms of finance, different backgrounds, and we believe that makes a difference. That's what we mean when we say they are complementary. And we are ready to start this new development cycle. When we talk about the companies, we have the different companies taking up the group. I talked about our management model. We do have a management model, which is somewhat different to -- of being close to businesses, focused on customer needs. Many people say that we're not focused on customer needs. We have had clients who have been with us for 60 years. Movida was the first company to bring imported vehicles to the rental business. Customers want to have their needs satisfied. Sometimes they don't express their needs, but you need to try and understand that. We come from transportation from logistics and that origin, led us to focus on customer needs and our suppliers' needs. I cannot buy an asset that cannot be sold. They cannot offer something to clients that they do not need. So we offer services to make our customers as well as possible to our businesses. Culture and value, we've mentioned, diversification, resilience our companies have several different services within the same company across different segments. So you have JSL Logistics. You also have food, pharma, agribusiness. Movida, we have used cars, new cars. We have industry. So that's what we believe in, in diversification throughout the real economy where you are key to people's lives. They cannot leave without that service, the service we provide. With that, you may have lower margins, but you are much more resilient. That's our strategic vision. You'll see that we're going to looking forward to our next 10 years, but without missing out on our way to do it. Simplicity, people, profit and we like to serve. So the way the companies are structured today and then each one of those CEOs who will be able to touch upon the status of where the companies are, some of the companies you will see have been moving forward. You've seen some acquisitions we've made. We do not obsess by synergy, but we need synergies with sustainability. So you have companies being acquired, they become owners, and we maintain the owner -- their founder or their succession or maybe we change that as well, but we do it responsibly. It's not an ambition of growing per se. The idea is to meet customer needs. That's how we are. We have different owners and you'll have a chance to see this in more detail as we move forward. Here, I'd like to ask you to please look at this very careful. This has a company -- our company in the past 12 years. We grew revenue by 20% a year. Our EBITDA grew by more than 25% and net income grew by 29% for the past 12 years. If you move to the right side of the slide, you see the past 6 years. The past 6 years, if you look closely, you'll see a gross revenue, BRL 7.3 billion in 2016. But if you look at first quarter of 2022 and you include the companies which have been acquired, we go over BRL 24 billion in revenue -- gross revenue. And if you do the same exercise for EBITDA, and you see the growth for the past 6 years. What's the bottom line here? Those numbers are here. But what cannot be seen here in Q1 alone this year, we had BRL 2.5 billion in net CapEx. If you analyze the past 12 months, you have BRL 10.5 billion in net CapEx. That revenue is not all included here. That revenue is coming our way. And if you look at the slide closely. This can be translated like that and very responsibly to show you where we are headed. In 2021, a year ago -- SIMPAR was created 1 year ago. So in 1 year -- a year ago, we said we gave indications of where we were going. And today, I can say, in 2020, we had BRL 2.3 billion. If you do the same exercise for last year, for 2025, we'll have BRL 4.8 billion. Just for us to think about this, we have delivered in Q1 2022, BRL 5 billion in EBITDA, so that, to some extent, shows where we are headed. As we mentioned before, what we promised for 2025, we delivering 2024 BRL [indiscernible] billion with a lot of hard work, respect to customers and respecting our values and our culture. That's for you to see what we're doing. And when we go through the respective presentations, you'll see who we are, where we are and where we are headed. And with that, you'll be able to have enough subsidies to anticipate what's coming on in our energy, our happiness and we are ready to do a lot more in the coming years when compared to what we've done. Thank you very much for your attention, for your participation here. So some of the members, but -- we are happy to be able to say when we talk about reorganized the company behind our organization, we have simplicity, focus on the customer, agility, but also the succession of all of us. Today, we have succession plan with leaders leading by company. Each one has their own succession plan, and we have specialists. We cannot be specialists across all businesses because we have different fronts, but we do have people who are specialists, and we are fully energized to carry on with the transformation. Thank you very much, everyone.

[Interpreted] Thank You, Fernando, for your words. That was a great opening to our event. Now I'd like to invite to the floor, Denys Ferrez, CFO and IRO for -- at SIMPAR. Welcome, Denys.

[Interpreted] thank you, Fabiana. Good morning everyone. It's a pleasure to be here with you. Thank you for joining us either in person or online. We chose a few topics to address today. Whenever we talk about SIMPAR, this is a group that grows so much, allocate so much capital, we have equity, we have debt. So there are many topics to be addressed. But today, we chose to focus on 4 items: Interest rates, everyone has been talking about inflation and inflation impacts interest rates. Then, the dynamics of investments and cash generation as a result. Capital structure, we're going to reaffirm some commitments made last year, and then we'll have a reflection on the value of SIMPAR shares, and our value creation model. Because SIMPAR is a holding, so we chose a business model with the aim of generating value. So interest rates. Well, we all know that we have hiking inflation rates all around the world. And how does inflation impact our numbers. Looking at our balance sheet, we have here on the left-hand side, our assets and inflation will lead to an increase in the value of assets. Now when it comes to our liability, the inflation will lead to hike in interest rates, which will increase our financial expenses. Okay. So what is the magnitude of all these impacts, balancing one and another? Because our debt exists for the acquisition of assets. So the debt is linked to the acquisition assets. So when we look here at our assets, we have BRL 22 billion in assets and the current value is BRL 26 billion. So another BRL 4 billion that have not been included in our balance sheet yet. But that will depend on the depreciation of our existing base. And then on the right-hand side, we have 2 different analysis. And the first one, if we look at the CDI increased projections from today in the futures market versus my debt stock, I have an expectation that my financial expenses will increase BRL 340 million throughout the year. But oftentimes, we think about long-term interest rate exposure. But here, I brought you an expression that we use in home equity, which is back book. Back book is our contracted debt. How -- what is the deadline for us to recycle our existing debt? We recycled this debt in 1.7 years' time. So here in this exercise, we have the projection of increase in CDI, and we multiply by the recycling time of our debt, which takes 1.7 years. That lead to a total of BRL 540 million in 1.7 years' time. So when we compare the BRL 540 million in 1.7 years versus the valuation of assets, which is the item that is linked towards that, then we have BRL 4 billion in asset value versus BRL 540 million. So this relationship will buffer the impact that we expect ahead. So if you see the results of the first quarter and you're thinking about what's coming ahead, so remember, we were talking about margins. We have only the additional here. So you might say, well, there is a part of the first quarter that you consumed to deliver those results. Yes, it's true. But even if you normalize the numbers and you continue using part of these BRL 4 billion, it is still higher than that additional financial expenses that we expect. So we've been doing this for 6 to 5 years. That's how the group has been growing. With the valuation of assets in the snapshot of the first quarter will exceed the expected increases within that existing debt recycling time. So that's the back book. What about the front book? Front book are all the transactions that are happening today with the new interest rates with the new asset value and other pricing conditions that you recalculate. And life goes on, of course, and the company adjusts to that. And of course, our contracts have an inflation memory. In 65 years, the group operated more in an environment with high inflation rates than the opposite. So we're used to that. Well, this slide shows us a bit of the cash flow dynamics and the transformation we're going through but we're also setting expectations for the right time frames. On the left-hand side, we have the following information. Net invested capital gross minus sales from 2018 until the last 12 months here in the first quarter of 2022. And on the right-hand side, you can see when you can expect the benefits of those investments coming into our results. So first of all, an important piece of information about the dynamics of our investment. Our fixed capital is modular, flexible and adjustable. That means that you can have that aligned with your demand. If the economy is slowing down, you can shrink it in the other way around. Of course, considering the profile of our businesses and the needs of our customers. So with the resources we have, we believe that we'll be able to continue growing even in a recession. But in a plant you build, you have CapEx for maintenance, and you have difficulties here and there. And that's really important to have that flexibility. And that's something we have because of the characteristics of our operations. So you're on the left-hand side in this chart, you can see that we have invested year after year. Even during COVID, and that confirms that our businesses are part of people's lives, and they add value to people, even when you need to rationalize resources in a crisis, it makes sense to use our businesses, our services, either rental of heavy equipment or our logistics services. Okay. Having said that, we have a level of investment exchanges that was quite important. From 2020 to 2021, you can see that we almost tripled our investments. And in the last 12 months, this has matched the level of the investments indicated for the year of 2022. If we see the last 12 months accumulated numbers. And we have here our EBITDA that will accompany our investment levels, as you'll see here. And this has to be like that because most of what we do is connected to long-term contracts. But then you can say, well, you also have some daily rentals or monthly rentals. Yes, that's true. But most of our contracts are long term with 5 years maturities. So we have a lot of visibility of the cash flows. And if you have daily contracts, you also have flexibility to adjust the size in a market that has more volatility to adjust for high seasons and then revert that when needed. If we annualize the EBITDA of the first quarter, once again, the last 12 months explain a bit of what our group is all about, and credit analysis usually look at the last 12 months, unfortunately. But the current levels tell us much more about what we can expect ahead of us than the last 12-month numbers. The annualized EBITDA is BRL 6 billion, 20% higher than what we saw in the last 12 months. But it's like we're building a wall, one brick after the other and getting larger and larger, day after day. Now if we look at the profile of the investments that we made on average, it takes 90 days to start generating cash. So if you look at the net investments made in the first quarter of '22, BRL 2.5 billion. Of this BRL 2.5 billion that represents 3x the investments that were made in the first quarter of '21. Of that, BRL 2.1 billion were invested in expansion, as you can see here on the right side. Now if we put 1/3 per month for -- per month of the first quarter of '22, what can we expect in terms of cash generation? What I do in January will give me results in April. And then what you invest in February will give you another 1/3 in the month of May. So added to what you got in April, you reached 2/3 of your cash generation contribution of the first quarter. And then when you finish investing in the month of March, in June, you see all the benefits of the investments made in the first quarter. So the first quarter that will be able to show you the results of the investments made in the first quarter will actually be in the third quarter of '22. That's important to highlight that. So if we think that in the fourth quarter of '21, we invested 3.5 billion most of it in expansion. This has not brought results in the first quarter. So this is dragged down because that's the time it takes for us to generate cash in our company. So we're still to see these results. But this volume of capital has already been registered in our balance sheet. It has already had a financial impact, but we're still to harvest the fruits of those investments. So our current numbers don't show what the company is. So you have 2 companies here, the one that you have already built and the one you're still building. So if we run an analysis on what we already generate, considering that growth is optional, you have a cash generation versus company value that is very strong. Well, since we allocate a lot of capital, we grow a lot. And of course, we're committed to our capital structure. Just as a reminder, we had a leverage peak in 2016 that was 5x. And that was because we were establishing the foundations of what we are using today. We had investments in Movida, which is a business that requires scale. And from then on, and of course, that also compressed our returns back then because we were building something that was our ramp-up phase. But after that, we were committed to decreasing our leverage. And from 2016 onwards, we focused on the maturing of these returns, and we had the support of the equities market. So we did not waste any growth opportunities. And at the same time, we brought the leverage down. In May '21, we had a reference of our commitment, which was to finish the year with leverage that was lower than the previous year in terms of net debt over EBITDA. So in May '21, we had closed 2020 with 3.5x. Then we were able to reduce this rate to 3.4x in a year that we invested almost BRL 9 billion, 3x what we had invested the previous year. So since investment is discretionary, everything we do considers both sides. So we're thinking about building or creating more value, but we also want to keep our commitments. So in addition to the size and magnitude of our investments, not many companies invest that much with that commitment of decrease in leverage. In the first quarter of '22, we reached a leverage of 3.3x. And the commitment is made at the end of the year, as you know. But since we changed the levels and if you look at the magnitude of the investments, you'll see that was great. If we look at the results in the first quarter, they doubled compared to the first quarter of the previous year. And this company in terms of leverage. I mean we have to look at the quarters ahead, when we'll have the results of the investments made. So what we call the running rate of our leverage is simply the annualized results of the first quarter. So we would be at 2.8x leverage. What I mean is that the apparent leverage does not represent the operational leverage levels in which we're operating right now. And once again, growth is optional. So we reinforce our commitments to continue reducing leverage gradually until we are below 3x. We have capped our liquidity and our long profile for debt. So both for the consolidated numbers and for the holding, we still have 7 and 9 years for our debt maturity. In terms of liquidity, cash is 11.5% for SIMPAR. SIMPAR holding is in light blue, as you can see here in the chart. And if you have BRL 2 billion in lines that are available, but that have not been withdrawn, and with metrics of coverage and liquidity, what we have in the consolidated has 7.5x, the short-term debt and in the holding 11.2x. So that means almost up to 2031. So to conclude, because I'm running out of time. I have here a chart for you that reflects upon our business model. When we choose to have SIMPAR as the holding of other companies, that has been done so because we believe this is the best way to generate value and to give individualized personalities to each one of the businesses. Of course, we have the leaders here for each one of the companies and -- when we listed Movida in 2017, we went public for many years. SIMPAR's value was only Movida's stake. We already had JSL because JSL was the origin of everything, and we were already developing Vamos. So in our first attempt of having an IPO for Vamos, then the market started to see value here. We could not reach an agreement in terms of prices, but they saw the execution happening, and we had a second attempt and the market recognized that in the SIMPAR value. And then we had the COVID-19 pandemic and the market was still following Vamos' numbers. So we had the IPO of JSL, then the IPO of Vamos. And then here in blue, you'll see what you call a holding discount. So our estimates is that what you see today in SIMPAR's value, the implicit value, we have at least a 36% holding discount. But that's not the most important part, in my opinion. The most important part are the numbers for value creation that we see here on the left-hand side. When we look at the performance and the market value of the company is created by far in the stock exchange, I look at the equity numbers. So in the case of Movida, we have had a 441% value generation, Vamos 1,752% and JSL 254% value generation measured in August versus our equity value. And down here, you have companies that are in an initial phase of transformation -- of value transformation. So we believe that the value transformation of these companies will be much greater than what we see here. And you'll hear from the leaders of those companies in order to better understand the opportunities we see ahead of us. That's all I wanted to share with you. I will be available for questions, and thank you very much for your time.

[Interpreted] Thank you. Please be sure to send us your questions and think about your questions posted questions at the end of the session. We'll have a Q&A moment. I'd like to invite Antonio Barreto to stage now from SIMPAR and he'll be talking about strategic planning. Welcome, Mr. Barreto.

[Interpreted] Thank you. Good morning, everyone. It's a big pleasure to be here with you at SIMPAR Day. In the past, I said it would be very nice to be able to do something in person this year, and it happens much better. I'm not very at ease holding a microphone, but this is much better than doing this online, looking at a camera or at a screen. I am Antonio Barreto, Strategic Planning Director here at SIMPAR. And at SIMPAR today, we consolidate all activities across M&A initiatives from all controlled companies. We have a dedicated team to execute all transactions. We're going to be showing the numbers in a moment, but we look at many, many things, but we especially look at everything we've done so far. And we've had hard negotiations in the past. But fortunately, we've been able to create value for the group. And we'll be going into details about that further down the presentation. But what we do and we want to continue doing is to continue to grow, expand to establish strategic alliances in a very complementary way for some businesses and with a lot of attention being very selective at what we do. Something we mentioned last year, which is part of our planning, which is our globalization process, we have been working on that agenda. But to be as transparent as possible, we are even more careful than when compared to what we do here. During the JSL Day, I said we've been looking at opportunities across outside of Brazil for a long time, and we are surprised with the level of multiples for each transaction. The current increase in interest rates across the world tends to be favorable to us. So things now start to make sense, and we'll continue to look closely at those opportunities. So we might do that in a more organic way, just as JSL has been doing and others through strategic alliances or acquisitions -- small acquisitions at that -- so that we can start diversifying and going global. And lastly, we continue to analyze infrastructure projects. We have not been participating in the more recent auctions. But -- and Denys mentioned that in the current environment with the current interest rates and the opportunities we have, it doesn't yet make sense for us to move from previous projects that we want recently to other larger scale projects. So from January onwards, we had -- we made 14 or 15 acquisitions or strategic movement. I'm not going to go into detail now. As for infrastructure, we won the concession for the POE highway and Ciclus was incorporated into the CS Infra. And I'll be talking about that in a moment in more detail when we talk about CS Infra. As Fernando and Denys already mentioned, those strategic moves are still not showing up in our earnings statements. This is for Q1, of course. So the revenue for the group, BRL 15 billion, but we still have coming in another BRL 5.8 billion, coming from those acquisitions, which have already taken place. Some of them are in the process of legislative approval especially around car dealerships or vehicle dealerships, but very well advanced conversations with automakers. For the older acquisitions, we have had the approval of all automakers. We need to now wait for the approval of the consumer defense agency. So that number will lead us to BRL 20 billion in combined revenue when -- year-to-date, 12 months of all acquired companies. So the M&A moves have helped in this transformation. So we did this very simple exercise. So we -- first we were very, very hard in our negotiations, and we only go after what makes sense for the group, of course, for the sellers as well. Of course, we are very careful looking at the multiples we are paying. So as for JSL, where we have more mature acquisitions, we made acquisitions at slightly below 5x EBITDA. That number already updated. It will be down to [ 3.4x. ] And when we include all the synergies that we have at a minimum level, that number will go down to 3x in theory paid by the acquisition. So a 38% move. And if I may, those are very accretive acquisitions. We choose good companies, well-managed companies that provide good results and that we can contribute somehow. As Fernando said, in the case of JSL, specifically, the companies we bought have been growing 30% a year with the support of the SIMPAR Group and of JSL. We'll continue to invest in that agenda, but we have had good results. For Vamos, the same. Here, we have the effect coming from the dealership business that we bought and which grew significantly, and moved from 4.3x to 2.5x EBITDA. And Movida, we went from 5.6x down to 4.9x EBITDA -- net debt EBITDA. For the auto dealerships, we do not have those numbers yet. Maybe next year, we'll be able to show those numbers for the dealerships as well. So I'll be talking about each of the lines of business. As for Vamos first, complementary acquisitions, as I said, as we did before, we bought a forklift dealership operator, and then we became the largest company for the leasing of that kind of equipment. And we continue doing that to complement Vamos operations to gain scale and to continue to develop those complementary businesses. For automobile dealership business. We are fortunate that the model we created was very well received. Very good groups have been coming to us with good margins. And we'll continue on that path to create scale across the dealership business. So we should carry on developing that consolidation move. And as for BBC, the bank, [ Fernando ] will be talking about this later today. In the past, we were not a bank. Today, we are a bank, so we can now offer new products and services, that development will happen in a very organic manner. JSL, once again, we are looking at different opportunities. When I -- the moment now is quite complex for small and mid-sized transportation companies. They have more difficulties in passing along their costs. The impact of financial difficulties is higher in their balance sheet, but we continue to work in a very strategic manner, being very cautious. We've seen very good opportunities, but we need to be cautious because of the moment. I did not this on purpose. We have just filed a relevant matter announcement just now. And we have acquired 100% of Truckpad. Truckpad is a platform for freights that's a material fact. They've been in the market for 10 years. 1 million freight a month, that's equivalent to a few billion BRLs. We've known them for a long time. I have been talking to them for a long time, and we were fortunate enough to be able to finally acquire them. We will take over the liabilities of BRL 10 million. And I don't want to disrupt the presentation, the event today, but this just came in, this material factors just filed, and I want to make this aside. Truckpad will continue to be an independent platform, doing what they do with small and mid-sized transportation companies and working with the shippers as well. And we will also benefit from our ecosystem. So when we combine Truckpad with SIMPAR, we'll be very favorable for them to become more profitable. They can sell financing lines and other products that we have in our ecosystem. And on our side, we will be able to use a technology, which was created 10 years ago and speed up their digital transformation. The digital transformation will transform our overall shipping business. That's important for JSL. It's asset light. It's a scale business. And we do believe that this combination would be helpful. This was not supposed to be announced today -- our team is hard at work, and it happened today, right. So we continue to have the strategic and complementary moves just like this one that we are announcing now. Movida, as we've done in the past few years, something isolated. That's a business where we don't have many transformational moves and doesn't make sense actually because we're very efficient in organic growth. So very complementary once again. And we do have a view of reaching more mature, larger markets and perhaps going international. CS Infra, as I mentioned, we are still looking at it, very responsible way, a very high-return project, always with a view at a focus on services. You won't see us get into projects where CapEx is too high, right? So we continue to look for brownfield projects or operational that will contribute to our results. So overall, that's what I had. I'll come back to talk about CS Infra, and I'll be updating you on some of the projects from our last part today. Thank you for your attention, everyone.

[Interpreted] Thank you, Barreto. He'll be back in a moment to talk about CS Infra. And now I invite to stage Fernando Antonio Simoes Filho. He is a Board member at SIMPAR. He also coordinates the Sustainability Committee, and he will be talking about the ESG agenda for the company. Welcome, Fernando.

[Interpreted] Thank you. Good morning, everyone. It's a pleasure to be here to be able to talk about the ESG agenda and especially to talk about how we see those topics linked to the value of our business. So a few points I have mentioned, and I did mention that before, last year, but I would like to reinforce. Number one, our governance model. We put together a model, which has been working really well. An important thing to say is that when we look at sustainability to link that to the company's strategy that came from the Board as a guidance from the Board in 2018. That's when we created the Sustainability Committee, and I was invited to lead that committee. Today, we have 5 companies that have their Sustainability Committees. And the CEO participates is an active member of that committee. That's very helpful. And [ Priscila ] and myself are the independent members of all those boards trying to contribute with synergy across all agendas for each company we have work groups, those work groups. Well, sustainability topics need to be executed in the everyday activities of the business. So we understand that the sustainability teams always small, right. That will help with strategy with management, but it has to be ingrained in the company's day-to-day activities. And the Executive Academy, where we have specialists from outside to talk to us so that we can learn with whatever is happening out in the field. We need to be humble enough that we -- to know that this is a new agenda that we all need to go through this learning curve. In 2020, we listen to all our stakeholders, and we put together this metrics. And just to emphasize, we call it AESG including economic -- EESG, we include the economic pillar, those are the pillars of sustainability and that reinforces our look that -- when we talk about stainability, we also talk about financial numbers, financial results value generation in the long run. That's also very important for us. So we have 8 topics. In summary, we have over 50 projects linked to sustainability under the group, which are monitored by this committee and over 30 indicators being monitored across ESG drivers. I'll be going through environmental, social and governance in more detail, to try and emphasize how we see the way value is connected to our business. So when we talk about climate change and the environment, that's an important topic for us. Of course, today, we have a program to manage our missions, which is quite robust. We have been improving, but that paves the way for us to understand our missions and how we can be more efficient on that front. And then we connect that to our business when we look -- especially when we look -- many, many companies, both domestic and international, are suffering pressure to pay attention to their carbon footprint. So this will be a distinguishing factor for all companies. And that will help us make our customers more [indiscernible] in more detail. 3% of our fleet is electric, Like electric cars. This year, 10% we bought -- this year, we bought 10% of our electric vehicles manufactured. Movida has 0.4% of our light vehicle fleet. So we are actually pioneers in this agenda. And we're not just doing aggressive moves without thinking about it, but we try to understand what our customers need and wish so that we can better know how to innovate in the sector. So we do have a target, which is to reduce emissions. That's our commitment in the long run, 15% reduction by 2030 and emissions intensity followed by 2030. We're moving well along that path. 2021's numbers came out at 9% below what we had projected for last year. So we are on the right track to exceed that target in time. That's an indicator we have linked to our bond system. And also talking a bit about our ecosystem and how it contributes to that agenda. Our fleet renewable, our average age is very low of our fleet. That's important, at the customers, and that's quite important. And we manage emissions. We also learn the type of impact that emissions have on communities, newer fleets emit less CO2 and other polluting gases. And that does have a very significant impact locally on health and other economic areas. And that's one of the values that come from having a young fleet, and that's what motivates us to approach society and the government to awaken the need to bring that age of the fleet down. So how we would work in terms of neutralizing CO2, how to bring that number down to 0 and have a carbon-neutral environment. So in addition to offsetting that, we can also work on biodiversity, which is also important for the economy. So when we look at that from the ecosystems point of view, you'll see where that impact will come, and this will be specifically important in the agri business front. So we are talking about the environment. But we know -- we are aware rather of how that connects with our customers and businesses. Also important, sickles and other business, we brought to the group for us to be able to understand how the thing can become a biogas. Sometimes, we can use that to fuel our trucks in addition to generating carbon credits for the ecosystem that's also very positive. We have a major challenge in terms of emissions. The Scope 3 that represents more than 65% of our total emissions. We're also pioneer in the sector as we look closer at that. We need to measure emissions generated by our clients, customers, our truck drivers and outsourced truck drivers. And we are now working on monitoring all that. And the idea is to foster assets which have better consumption patterns, pollute less, use other fuels and also other programs. As we have the Toyota, one of our clients to offset CO2. We have carbon-free program in Movida, Carbon Zero at Vamos, all of those programs focusing on having a carbon-neutral environment. And we want to make sure that it also depends on our customers for us to move forward. In terms of social. This year, we had climate survey, and we are very happy with the numbers we got. Another important program, which is the one called Connected to You, the Ligado em Você, which is a way for us to supporting our associates and family members across different personal aspects. Health issues, legal matters, drug addiction, so we need to be talking about mental health as well. That's a program that has been in place for over 10 years, and we have been stressing the ways we communicate that to the group. Today, we took on a target of training 1,000 young people in vulnerability issues so that we can hire them at company at the end of the training. We are focused on poor kids starting at 16 years of age. And at 18, they need to move away from government housing. So we have a social approach to that, trying to offer jobs to them and when we provide them with opportunities, opportunities that they would not have elsewhere. We're also sending a positive message to our associates in improving our turnover. So the focus is here is how to hire those kids at a higher scale. We had a pilot program last year, and we are now scaling that up. And we're also working in technical training and also women in the job -- women to drive trucks as well. Very interesting project we had in place. And we analyzed how women could do that. We have a very small number in the group, but they have much better operational indicators than man do as truck drivers. We tend to think that driving trucks is a men's job, but we do have plenty of opportunity here. We do have women who have -- who are licensed to drive trucks but cannot find a job. So we are now hiring those women. They have fewer accidents. Insurance companies know that while insurance policies for women are much cheaper than for men so as we analyze [indiscernible] that this is also an opportunity. So we're going to work on that topic to increase efficiency as well. We're also working with our employees who will mentor the young population and the Julio Simoes Institute is now focusing on valuing professional truck drivers as well. When it comes to governance, this is the third year in a row in which we have an integrated annual report. So this reinforces our belief that sustainability is integrated to our business. We do not have a separate sustainability report. That's why we believe it makes sense to have an integrated annual report. So this is the third year in a row that we have released our integrated report. We want to improve our rating at many different ratings like MSCI, ISE B3. We have 2 companies in the group there are holding and Movida and CSA, we also have Movida and SIMPAR as the best companies in the industry in that ranking. Now finally, to conclude just a few highlights in the environmental sphere. Everything we've done shows how much we believe this generates value for the business. And having cycles now in the business to generate carbon credit is another interesting step we have taken for the governance sphere. Last year, we had the incorporation of CS Frotas and CS Infra. This is the fourth operation in which the group chose to go with the minority voting and that was a unanimous approval. That shows how much we value the relationship with our investors and their view in our governance process. And finally, at diversity, we also see value not only in gender diversity, but also diversity to complement our team skills. We have an indicator, when we look at the holding, we look at the consolidated of all businesses. And we have more than 19% of females in leadership positions. But when we look at the market and market like comparables and the holdings that are listed to not use the same logic of having all consolidated numbers to have that indicator. So when we look at the holding alone, we have 45% female in leadership positions. So that would be a better comparison to other holdings. 45% of females in leadership positions. And in the program connected to you, Ligado em Voce, we had over 4,000 services provided last year. So that shows how much we value our people and our employees. So that was all. I wanted to show you the connections between this agenda and our business. And I want to say again that we're not going to be the most aggressive companies to take on long-term targets. We have taken on a few targets. It's true, but our commitment is to have deep consistent deliveries in the short term because we know this generates a lot of value for us, in the long term, and also in the short term, in the relationship with our customers, loyalty and relationship with our employees as well. That's what we believe in. So thank you very much. And I'm available for questions later.

[Interpreted] Thank you, Fernando Simoes Filho for your presentation. It was great to hear about the ESG initiatives at the company. This makes all the difference, and it prepares the company for the future. All companies that are acting, the ESG arena have a higher likelihood of succeeding. Okay. Now let's start with JSL, I would like to invite JSL's CEO, Ramon Alcaraz, to start this session now with the SIMPAR companies.

[Interpreted] Thank you so much, Fabiana. Good morning, everyone. It's a pleasure to be here in our SIMPAR Day -- I mean, it's a pleasure to be in another SIMPAR day. Last time, I think I spoke too much more than I was supposed to. But now after a year, I can say with a lot of confidence that it's a pleasure to be here. We had a great year, a difficult year, of course, but a year of great evolution. Our industry was impacted by this change in the national and international scenario, but we have a very cohesive team that was able to neutralize all of those impacts and continue growing as you'll see. So who is JSL? Well, it's not just a coincidence that I am the first to speak here today. JSL was the first company to be created. It's like the parent company. It's been around for 65 years now, and I'm very proud to be head in this company and to be able to share our numbers with you. So who are we? We are the largest logistics company in Brazil. And we also have the largest portfolio in this end-to-end process. And the beauty in logistics is that this is what makes society as we know possible. That's what connects the raw material to the industries and then to final consumers, covering transportation, storage and the whole process. And JSL is present in this chain end to end. So we act throughout the whole cycle. We have different types of operations. We have dedicated operations, cargo transportation, storage and urban distribution. So we are involved in the extraction of the raw material sometimes. And we also cover transportation, storage, and we also cover the last mile distribution. And what is nice about our business, is that we are part of the real economy, even if the purchase is performed online, which is something that became very common during the pandemic for the product to arrive at your doorsteps. There's a whole physical process to make this feasible from the raw material, throughout the whole chain until the product reached -- reaches your doorsteps. And JSL is present in this chain from end to end. And we're also present in 16 different segments: the primary industry, pulp and paper, mining, retail, food, beverages, electrical appliances, inbound and outbound logistics, and this creates a natural hedging for us, in a typical scenario like the one we're going through right now, not only in the domestic market but also in the international market, this has made all the difference for JSL and the growth numbers I'll share with you will show you that. Of course, there are some segments that have been hard list hit than others -- more hardly hit than others like the auto industry. But we have retail with exponential growth, especially in the food and beverage industry. And also commodities, mining, pulp and paper are also industries that are going through a lot of growth. So this creates this natural protection to us even when we go through uncommon times, like the ones we're going through right now. And as Fernando usually says, we have this total focus on serving our customers. This is part of our DNA. And as proof of that, you can see the number of years we've been serving most of our customers. Some of them have been with us since the beginning of the company, 65 years ago. But if we look at our top 10 customers, you see that we have a 22-year history working with them. We've had a very consistent growth process since our IPO. In the end of 2020, we grew by 83%. And once again, even in challenging times like what we're going through right now. And the independent management model of the acquired companies, we have just announced the acquisition of Truckpad. And the Truckpad so in all of the acquired companies since the IPO. All of the acquired companies continue doing what they know how to do. And of course, we work closely with them to provide them support, not only with capital structure but also to capture all synergies, but we keep our distance so that they can continue working independently and doing what they do so well. And proof of that is our numbers. JSL has grown 21% in an organic way when we compare the first quarter of '22 to the first quarter of '21. That is quite a relevant growth, especially in challenging scenarios. And the acquired companies when compared to themselves have grown 31% in the same period of time. That's another proof that this management model is very successful. And what gives us pride? While our 25,500 employees, considering JSL and all the acquired companies together, we have over 300 branches, not only in Brazil, but also in another 6 countries, 5 in South America; and 1 our first experience of the group outside our neighboring countries. We have crossed the Atlantic and we have reached South Africa. That's a very interesting experience in an experiment so that we can grow in other continents. Of course, it's a hard work to adapt to new cultures, but we're constantly learning and that's what makes us evolve. We have 1 million square meters of storage space. That's another very important segment that we have, and that has grown considerably, not only with JSL, but also TPC this year and over 50,000 truck drivers. And the acquisition of Truckpad is very much related to that. That's going to enrich our business even further. Now let's talk about numbers. We like to keep our promises. And we even like to exceed the numbers we have promised. During our IPO, we have promised a GDP plus 7% growth, but we have actually grown our GDP numbers plus 12%. So we have exceeded our promise by 50%. We also said that we would have an organic growth of BRL 700 million. We had a BRL 2 billion growth in revenue. So almost 200% more than we promised. And EBITDA of BRL 510 million was promised, but we reached BRL 758 million, so 50% above what we promised in challenging times that were not forecasted when we did our IPO. Net profit of BRL 170 million was promised, but we have reached BRL 273 million, so 61% above what was promised. And our ROIC, we said we would have 9.5%, but we actually delivered 13.5%, which is over 50% above what we promised or 4 percentage points above those 9.5% ROIC. We said we would have a leverage of 3x our EBITDA, but we have delivered 3.2x our EBITDA, very close to what we promised even with all that additional growth. So as I said previously, we have grown by 82% since our IPO, so an exponential growth. In our SIMPAR Day, a year ago, we gave you some guidance saying that our expectations was to grow 3x, threefold in 5 years, but in 1 year, we were able to grow 57%. So we are halfway the growth promised. So I think the guidance was small, right, Fernando. I think that by 2025, we'll be much larger than that. Now let's talk about results. The results have already been released. We talked a lot about that during our JSL Day. But now let's look at the actual numbers. Comparing the first quarter of '21 -- '22, with the first quarter of '21, we have had a 50% growth. Of course, that also includes part of the inorganic growth because not all companies were included in the results of the first quarter of 2021. But even with the organic growth, we grew 21% at JSL and even more in the acquired companies. In terms of results, our EBITDA grew by 72% comparing the first quarter of '22 with the first quarter of '21. And there is no question that the acquired companies held us here. We had greater growth and a more focused result and that reinforces the importance of our strategy, which is to give autonomy for the companies to continue working and doing what they do best. And this ROIC of 9.10% to 13.90%, so an expressive growth of return over invested capital, but it's not all roses. We went from a Selic of 2% in the first quarter of '21 to a Selic rate of almost 12% in the first quarter of '22. So a sixfold increase in the Selic rate, and that will impact costs, of course. So due to our financial expenses, we had a small retraction in our net profit, but that's all part of the game. What are the actions we believe in? What are the actions that support us to continue delivering these results? An assessment and redesign of all contracts because with the increase in input costs, some of the contracts might have a deficit. So we need to negotiate, renegotiate these contracts or even terminate some contracts if need be. We haven't had to do that so far, but we are prepared to do it if we have to. And one thing I usually say here at JSL is that we're focused on reducing costs and optimizing resources to do more with less. And I know it's pretty to say that, but much more than saying we walk the talk. We have decreased our fuel consumption. We are more productive. We can meet the same volume with fewer trucks. We optimize our back-office processes to do more with less people and more important than that, something we've been doing, which is to grow the company's volume without having to increase your headcount in your back-office because you can optimize your resources. And of course, we are investing more and more in efficient projects to centralize and digitize our back-office processes and the acquisition of companies. That's very important. The M&A area led by Barreto, acquiring companies that have come to contribute to our results. That's exactly what has been happening. And renegotiating with customers, we've been doing a lot of that recently. I had not seen the need to go back to a customer to renegotiate a contract more than once a year in the last 25 years. But now we go to customers 2, 3, 4 times a year to renegotiate prices. And that's always a complex zone. We have to pass through those increased in costs to our suppliers. And of course, we don't want to do that. We don't want to be passing this through to consumers. Otherwise, we have even higher inflation rates. That's what we saw in the 80s and 90s, but we're working together with customers to create opportunities, and that's what explains our high cross-selling levels. At the end of last year and in the first quarter of this year, we have celebrated more than BRL 4.5 billion in new contracts with an average validity of 45 months. So this is what will guarantee our growth in the coming months. And of this BRL 4.5 billion, 75% of them -- of that was cross-selling. So we are closer to customers to negotiate due to price increases, but we're also identifying opportunities to be able to grow. And here to reinforce what Fernando just said, but also shedding some light on JSL and also reinforcing what we have already announced, Sylvia Leão has joined the team as a Board member at JSL that brings, of course, gender diversity. But in addition to that, she is an expert in people, and that's our main pillar. Over 25,000 employees, she has already taken part and some meetings has helped significantly in providing a more technical focus on our people area. Alternative vehicles, such as electric buses, gas-run buses as well. We've done that with some clients. And we also believe in hybrid alternatives, using gas and combustion. Fernando has mentioned it, but once again the voc quer, voc pode plan, you want you can. Thousands of employees will be taking part of that. We are also true delivers in safety. We have been awarded several prices as the safest company in logistics from Petrobras, Braskem, Suzano and others. We also believe that having younger fleets is also important. And coming close to the end of my presentation, my time is up, but a final important message. Even though we are the largest company in the market, twice as much or 3x as bigger -- as big as the #2 company, that's not important. It's important for us to look ahead. And when we do that, it's an endless highway that we have ahead of us. The logistics market in Brazil, represents over BRL 1 trillion. Of course, that number changes. Not everything can be touched by us, but be it BRL 1 trillion, be it BRL 800 billion, whatever the number is, it is a huge number and also a very fragmented number. We do not account for 1% of this market. So we have a lot to grow when we look ahead. It's a mindless highway as I said, and we want to be ready to achieve all that. And what we believe we can do for that to reach that? We believe in a strong leadership, which can be seen by everything we do, professionals, which are aligned with our culture and values. And with experience to ensure the long-term survival of the company, [indiscernible] is going to be here forever. So we believe in succession, also to diversify business service and customer. We have 16 segments, as I said, high level of service rendered to our customers. That will be our foundation going forward, a very strong capital structure as well, providing the ability for us to acquire other assets and also to support large contracts and also investment in technology, the last bullet point. That is the way for us to become a company of the future, to be the company we want to be. So the acquisition of Truckpad speaks to that. In addition to having a service in a product, it will help us in the digital front as we look to the company's tech advances. We want to be technological. We want to be digitalized. This will provide better access of information to our customers, our employees, our contractors, and that's what we believe in. And we believe we are on the right track to deliver a lot more than we have already delivered, even though we are, of course, quite proud of what we've accomplished. Thank you very much, and I remain available for questions at the end of the session.

[Interpreted] Thank you, Ramon. Very nice to hear to what you had to say now from JSL, straight to Movida. I'd like to call stage Renato Franklin, who is Movida's CEO.

[Interpreted] Thank you, Fabiana. Hello, everyone. Good morning. Very good to be here once again for us to talk about Movida. You've witnessed the transformation happening at SIMPAR that fuel us very much. The potential of what we have ahead of us. I'll be very brief, very objectively, basically 4 takeaways I'd like you to leave this meeting with. First, we do have a clear strategy. We have had that since early on looking at customers and trying to identify what they want. When we came, people thought we were crazy to offer cars with air conditioning. And they said, "you were crazy." And I told them, this is not our client. Our client is not the ones who want a cheaper car. We want retail customers. We want people who like new cars. We identified that HB20 from Hyundai was a good bet. So we established a partnership with the company back in the day. People thought we were crazy and HB20 today is the object of desire, and we launched premium cars, imported cars. Of course, it's not material, but that serves to meet customer needs, they become loyal customers who will rent other types of cars. That has driven our growth. Growth is a consequence of those innovations. Also innovation in digital. We're the first ones to have cellphone apps, web check-in, our used cars e-commerce platform, which helped us significantly during the pandemic. We have our carbon-free program since early on. So sustainability is nothing new for us. And it's not my doing. This was already here when I got here. And that has all made us stand out among the competition. We talked about growing GTF since the beginning to provide the stability for the company, and we have been growing GTF organically with a different value proposition, and we were fortunate to have CS Fleet led by Joao Bosco, and that helps us position ourselves differently in the market. If you analyze our numbers, that has been a major transformation. And we also lead that mixed economy factor way ahead of the pack. Our stores are also different. And since the beginning, our rental stores, they offer a place for kids to play. It is more comfortable, more attractive. We changed the industry in that front. And when you look at used car stores, completely different. In the past, they said this is a premium facility and some customers thought wise before entering the store. They thought prices would be higher because of that. Now what's the best store to sell an SUV or expensive cars? Our stores. So we have a better structure to offer the products that we have. And we have been talking about that since the beginning. It's not a long -- a short-term strategy. It's a long-term strategy, and it started back in 2014 when we began building a different type of business. We identified that it was an unmet demand for the kind of product. As Fernando said, we have invested in ASG. It is the only listed company in the world certified as a big company in the car rental market. And that, of course, provides a lot of credibility for us. So look at the numbers. Quite different from 1 year ago. We had 18,000 cars, now 192,000 new stores. New stores help us have the right price. I have more sales channels, I have more customers, and I can charge the right price with slight variations to offset gains and losses. That's how you grow sustainably, BRL 8 billion in revenue, BRL 1 billion in net income, way above what we had last year and still a lot to cover. When we talk about this, that's the first message, right, the first takeaway, a different position, a different strategy from early on. Second message. That transformation provides us with scale which is enough to compete with any player out there. We'd not -- did not grow for nothing. We knew we needed scale. This is a business based on scale. You need to buy high volumes and benefit from discounts. We had a significant gap with some automakers, not anymore. We bought 6.5% of all brand new cars in Brazil, the highest buyer of cars in Brazil in the last quarter. That provides the scale that we need. Today, we can compete with any size competitors. Now we can choose the automakers we want to be partners with, so that we can compete with any player. So that gives us a more selective stance to invest what we want. We can identify whether or not our investments bring returns or not. In addition, we were the only ones who reviewed the fleet. We are the only ones that we used our fleet that's a big distinguishing factor. So we are more motivated. You arrive at an airport counter, and you'll see the difference. Everything is new in our booth. Everything is booming. We are different from the others, a different type of energy. And customers realize that. 82% of NPS were the main indicators for the company. We have also invested in management, you've seen that. We've been talking about our price transformation, and we have been delivering more transformation than we promised. And some people who ask, is it possible? And it was. Inflation is there, and we pass those increases along. Growing is optional. Having the right price is not, and that is a commitment that we have with our customers. Cost and expenses we have the lowest cost, the highest productivity in the industry. Whatever indicator you pick, we will be more efficient at Movida. That gave us a 15% increase in margin. In the last cycle, we had a robust growth. So growing cost money as Denys showed, have CapEx, and it takes 3 months for you to get that back. So it costs money. If I have reached the scale and now we are growing differently, we'll capture the benefit from that new scale down the road and I'll now decrease the cost of growing, and we tend to increase margins at the end of the day. Growth with profitability, we have shown our ability to grow to execute. Nobody can doubt that 70% of growth, a ROE of 34%. We are being returns and growth with discipline. A very strong history and the transformation, which has been very -- to talk about the transformation, I have some numbers to share with you. To go back to the first slide and to give you the third message I have, what would be the third takeaway. The transformation is large. We cannot compare Movida's today with Movida's last year when we had our SIMPAR day. Last year's SIMPAR Day, we said what we wanted to be by 2025, we have a guidance for fleet and profit. And people would say, is it possible? How are we going to do that? And it's done. Most of that transformation is accomplished. It grew 75% our fleet, 60% when compared to 2020, in terms of growth of the fleet. And revenue, 100% of growth, 360% in EBITDA. The EBITDA growth is quite important. Back in the day, we said you now have an EBITDA of BRL 1 million. We already envisioned an EBITDA of BRL 2 million. And the same thing goes now. When you look back and you see 2.5, we're talking about 3.5 because that's the current EBITDA for Q1, without considering the EBITDA relative to the CapEx of Q1. So a lot to be captured going forward in terms of growth and which makes our balance sheet very comfortable for us to expand the company and generate return with discipline, but also exploring opportunities with a focus on customers. So let's do what we need to make money, and we'll do what we can to improve the company. With that, profit at BRL 1 billion, the third quarter where we have BRL 1 billion of profit in annualized terms. And I highlighted 4 items of our execution capability, which are relevant for what's happening right now in the market: Number one, proper pricing. Pricing will be adequate to the income tax -- sorry, with the interest rates that we have. We have the proper price, and we see the size of the market, not the other way around. It's not a growth target, and then set the price accordingly. You have Fernando talked about electric cars. We have 600 electric cars. When we launched the Audi was the same thing. We will do as we see demand growing or decreasing and invest accordingly. And that has helped dilute our costs. And then we gain margins when you increase prices, several costs remain the same. Part of the price is mix and part of the price is inflation coming from the services that we provide. Alliances with automakers, that's what Fernando just said. When they need us, we are there for them. When there is a shortage of cars, then they are there for us. That's what I call [indiscernible]. When market was restricted, we received more cars than the competition under the same commercial terms. So it is a strong sustainable alliance. Customer positioning, which is adherent to customer needs. How do I show I am best positioned. We grew 80% of revenue from services. So we gained shares -- share across all businesses because customers are choosing us. It's not because we believe it's better because customers believe it's better. And a younger fleet is one of the attributes, and we will have that for a long time even if those the competition decides to renew their fleets. Now we are way ahead of them by now. And I'm going to go now to the fourth message, which consolidates the first 3 messages. What is the fourth and final message. We have reached our scale something close to 200,000 cars, 47% growth, which happened in about a year and 2020 was the year of the pandemic, so we're not really counting it. So it was a very strong growth, 60%. For our [ 260,000 ] guidance, I need to grow between 8% and 16%. In our track record, we have never grown at that level. We always grew much more than that. Was it more difficult to do that? Daily transforming, growing 70% or is it more difficult to adjust that incremental increase of 8%. It's a different level of comfort that we have. Of course, there are execution challenges. There's a lot to be done. We are still in the first steps, but we're talking about a different level of growth that brings profitability, and we will deliver that when we look at that 2025 guidance at a very comfortable level because we have already anticipated most of those deliverables for now. So last year, they asked us if we were going to be able to do that -- if we need equity to do that. And we said, no, we don't. Look at our EBITDA -- annualized EBITDA and look at the real leverage, the run rate. If you look at 3x EBITDA, which was stable even though we grew 70%, which proves we had cash generation enough for that. Today, it's 2.4x because the annualized EBITDA is at 3.5, not including Q1 CapEx. In other words, my leverage is even more comfortable than the one -- the annualized number that we see now. That's why we only need to grow 8%. So can we accommodate that? Of course, we can. Anybody can see that we are at a very comfortable position to execute our plan. Now on the other side of the slide and talking about profit. We delivered BRL 1 billion and they say, well, for used cars, you are not there yet. We know we planning to normalize that for used cars as well. Then we have interest rates going up. And in theory, that will reduce profit here, but we will increase revenue in rentals. We have not yet captured the benefits coming from that scale. We'll start capturing that now. When you look at used cars, you see a gain in scale, which is quite large. So when you look at the nominal value for used cars, the impact is much lower. You may losing margins, but in nominal terms, you can deliver the same results. So all of that provides us with comfort and reassures that when you have that net income guidance for 2025, it is quite comfortable. It is a guidance which is within plan, and we are working to deliver and when possible to even anticipate while generating value. So we are committed to ensuring a good spread of ROIC over that cost and also delivering at the same time. That's the final message. Movida did a great transformation. What we have ahead is a smaller transformation without changing the numbers because there's a lot to be captured in terms of profitability, revenues are going up. But in terms of CapEx of transformation, especially relative to the size of the company, it's a totally different scenario. So our plan now is to generate value and to be recognized as a different company. What I showed here is proof of that we are in our first steps. As Fernando said, what we have had is very exciting, but it's a very good start, which reassures us that what we have ahead is much better than what we have seen now. So quite happy once again. Thank you, and I'll be around for questions or comments at the end. Thank you.

[Interpreted] Thank you, Renato. Okay. Let's now start the presentation of Vamos with the CEO of the company, Gustavo Couto. Welcome, Gustavo.

[Interpreted] Good morning, everyone. It's great to be here once again for another SIMPAR day. Our second opportunity after Vamos went public. So this is very great. Maybe we can plan a Vamos day in the future, but we have a lot to cover today. So let's get started. Here on my first slide, I will tell you a bit about who we are, what Vamos does. Well, you already know us, but we are consolidated as a leader in the industry of truck machinery and equipment rental in Brazil. We have the greatest coverage and footprint in Brazil with dealers and shops. And we have an integrated portfolio, a unique model that is hard to copy, and we have a wide range of options to offer to our customers in this very demanding market. We know that the Brazilian fleet of trucks and equipment is very old and inefficient. So we're here to offer alternative to our customers, those who want to buy, sell, rent or exchange. This is our concept, and we do that by having a national footprint, a unique positioning and a differentiated offer. Our business model has shown to be very resilient regardless of what happens in the economic scenario. People often ask what happens when you have an increase in interest rates, GDP recession and other volatilities, that are seen as natural here in Brazil. We have been through times like this before. So you saw that Vamos was resilient in its business model. And we were able to grow regardless of what was happening in the macroeconomic scenario in a consistent way, delivering value to our customers, generating value to shareholders and keeping our profitability levels because people always asked can you achieve that growth together with profitability? Well, as you can see here, we grew a lot. Our CAGR in the last 3.5 years was of 84% on new signed contracts. And it's worth mentioning that these contracts when they are signed, they are long term. 90% of our contracts are valid for 5 years or more, and that gives us enough time to compensate the asset appropriately and adjust for any cash flow variation. And this gives us predictability and transparency. New investors, shareholders, you see Vamos business model in a transparent way as a resilient model. You know exactly what is going on with the company. And that's why we've been able to deliver a consistent net profit growth. We're going to talk about returns later on, but you can see here the growth in our net profit, which is in line with our growth in general. And the growth is not happening in one business unit, but in all of them. Dealers, used cars, car rental, all of our business are growing in a sustainable way and with profitability. And when we talk about having a national footprint, I want to tell you that we are talking about 30,000 assets, the 30,000 assets that are in our balance sheet. A part of it was anticipated in our strategic inventory and we haven't yet seen the revenue from those assets. But there's also a share of contracts that were signed in the first quarter of this year in the guidance that we gave of BRL 4.6 billion to BRL 4.8 billion of CapEx for 2022. And in the first quarter, we have already made 1/3 of that. And this CapEx here has not yet been included in our results. It has not impacted the annualized net profit yet. So the pace we have right now is much greater because we already have dedicated assets. We planned ahead for all of this. And we have the H&M (sic) [ HM ] acquisition, and all of their assets have not yet been included in the first quarter results because we incorporated that company in the beginning of April, as you remember. So -- not all of our fleet has impacted our revenue in the first quarter. So this growth with profitability has not been seen in full yet, but this is going to be delivered in 2022. Now if we look at our EBITDA and our future revenue, you will understand what's going on. Our annualized revenue has had impressive growth over 200% looking back 3 years, and our EBITDA has grown consistently at a pace of almost 200% in the last 3 years, and a contracted future revenue that has reached BRL 8.9 billion contracted in the end of March. I usually say that if we didn't have a team working hard there at the end of the month to secure yet another strong month, we would have a 150% growth only on top of what was contracted in the beginning of the year, and we have yet another 9 months of hard work to secure that even more robust growth. And as Renato said, they are anticipating the projections they had for 2025, and we're working hard to do that in our company as well. We've been able to do that already, and we'll continue doing that throughout 2022, regardless of what we were already able to deliver in a very sustainable way throughout the first quarter of 2022. Now when we look at the transformation strategy of our company, this is based on some very important pillars that we already talked about, but a long-term relationship with OEMs is key. When the pandemic started, many OEMs had to shut down and their employees were laid down, but we work together with the OEMs. And we made purchases because we knew that the growth of Vamos was really important as a whole. So we were there helping with increased productions at OEMs and serving our customers even in times of uncertainties. And we made important moves and you have seen the results we have achieved in the last 2 years. So this is an example of what we do, and we've been doing that throughout our whole history. This hasn't started with the creation and foundation of Vamos, but this has started since the very beginning of the SIMPAR Group. Now the purchase of new trucks, we more than doubled the number of trucks that we purchased this year. This shows that our business model has become viable, a feasible alternative to our customers. We have a media campaign. And you'll see that in the campaign that those who do the math don't purchase trucks. They rent trucks and the companies that are maturing and they understand all of the benefits that go way beyond efficiency reaching cost reduction. So companies that are going through difficult times can reduce their costs through this model, which is renting their fleet. And by doing so, we've been able to increase our representativeness. And people ask, well, you offer these benefits of creating an inventory, planning purchasing and all of that? Is that sustainable? Well, our numbers show that we have had great discipline in executing our strategy and how our business model cycle has been sustainable as a result. We have a complete services portfolio, as I said. So we're not talking about commercial synergies only, but also operational synergies. These are assets that complement the business of our customers for agri business. We have forklifts. We have tractors and trucks. And when you think about other logistics services, we have the same assets available. In the infrastructure, we also have assets and services that complement each other. And this is something that we built not in 3 or 4 years, but in decades, because we learned to do what we do by managing the JSL fleet. We used to be a department within JSL. And many of the people, who are working at Vamos today already had this expertise, already had this experience from JSL, and they are helping us take our company further ahead. We have 11 used equipment stores, but I also sell at Brazil, in the Midwest. I can sell used trucks in our stores and dealers in that area. So we're able to integrate our stores and have much more than these 11 used equipment stores because we can integrate with our dealers and offer used trucks to our customers no matter where they are in the country. Now when we look at our competitive advantages. I really like this slide because you all know that Vamos is developing a business model that is a pioneer in the company. But we started doing that in the 90s. When we signed our first rental contracts. But we didn't have the focus, the energy and the dedicated team to further develop this opportunity here in Brazil. But then based on the experience accumulated throughout over 2 decades when we created Vamos in 2015-2016, we focused on developing this market as a pioneer in that market. And that gave us a scale and a leadership position, and we have become a company that is much larger than any other heavy vehicle fleet owner in the country. You know the numbers. We have market intelligence, and we make all types of sales available for fleet owners and others, but we also provide license to a much greater volume. We have a much bigger fleet. And because of our scale, we can benefit from all of the volume that we have. And the scale matters not only for the purchasing, but also for the turnover of assets. We have customers, for example, that had to change their asset profile during the pandemic. They had a certain profile with higher tonnage, but then they started offering less mile services, and they had to adapt their fleet to a lighter fleet. And we had scale. So we were able to plan this swap of trucks with the customers and extend the contract with customers, creating customer satisfaction with a newer fleet and adapting to what they need. That's the benefit that scale brings and asset turnover as well another benefit of our business model. Just so you have an idea, we were talking about you want you can, voc quer voc pode, which is a program we have in our group. We incorporate that in our people development program. We depend on our after sales services. And training our mechanics and our team is really important. So we have people development programs in the regions where we operate, but we also train the people that will be the future of our company. And this scalable business model. As you know, we use technology in everything we do. You saw a map in the first slide. And in real time, you can see -- I was going to try to show you this here in real time, but then Mr. Gustavo said, what if the Internet crashes because of that. So I'll save it for another opportunity. But we can monitor our fleet in real time. This gives us market intelligence, fleet control services to customers. So by tracking our fleet and with embedded technology in our fleet, we can monitor it in real time. And we've been doing that with intensive use of technology, as I said. And you saw our numbers, the numbers -- I mean the growth is coming in all our business units, return on equity and return on invested capital even with that great volume of investments that we have to do before and with the transformation of our inventory levels, we are able to preserve and even expand the return on invested capital. I said this is a resilient model, BRL 9 billion in contracted future revenues. That's a great backlog, that gives us alternatives for our company's growth. That's important to highlight. It's not only about predictability, but a very robust and healthy portfolio of revenues that will offer us a wide range of possibilities, not only in terms of cash generation, but other structured operations that can come from the significant backlog and growth opportunities. I've been a customer of the group for 10 years. I have that privilege. And whenever I look at this, when Fernando came to me and introduced the idea of Vamos, I said, well, this is a business model that meets the needs of most of our producers and logistic companies in the country. Because we have this consistent value proposition of reducing costs, having a lighter balance sheet, tax efficiency, agility, productivity, efficiency, and that brings us an amazing growth opportunity. And finally, we told you we're going to reach 100,000 assets by December 2025. We expected to close 2021 with 23,000, 24,000 assets, but we closed with 26,000, not to mention H&M (sic) [ HM]. If we include H&M (sic) [ HM ] that is going to be 30,000 assets in the end of 2021. So to get to 100,000 assets in 2025, if the fleet stagnates, I mean the addressable market here is huge. And we are going to account for 2.9% of the addressable market of trucks in Brazil. By 2025, we are going to account for 2.9% of the addressable market. Even with the large -- being the largest company here in this industry, we're going to account for only 2.9% of the addressable market. This market is huge. And you say, well, you're going to have 100,000 assets, you're going to be selling 20,000 assets a year. In 2027, 2028, we're going to start selling 20,000 assets a year. We're going to account for less than 5% of the sales of used trucks in the country. Today, we're 0.5% only. So this is a very fragmented market. And although we look at this and we get very excited to understand that we have this huge growth opportunity, but when we look at the size of the opportunity, we get even more excited because we have a long way to go, and this is only the beginning. Thank you so much for your time. I'm going to close my presentation now, and I'm available for questions later. Thank you very much.

[Interpreted] Thank you, and let's move on with the presentations of the companies, and we'll now have the presentation of CS Infra, one of the youngest companies in the group which shows the company work in infrastructure products. So to talk about the CS Infra, I think I'd like to invite back to stage Barreto, who is the Planning Director at SIMPAR also. Thank you.

[Interpreted] When people back to stage and say it will be brief, nobody does that. I'll try to be brief on my end. So just to provide a little perspective. I am here representing several people, and I'll show you the people we have hired, but we do not have a CEO per se. So that's why I am here on behalf of everyone else. But we will have somebody to represent the group as the CEO. And if I may, I'll talk about CS Brasil, Joao, is here. He is the CEO of CS Brasil, who will be available for questions. But just to be sure, CS Brasil was part of 2 strategic moves here within the group. We worked with CS Fleet, our public services and mixed economy, which moved to Movida and the infrastructure products were under CS Infra. So what we have in CS Brasil now? We manage fleet with labor as well. We had passenger transportation business. We still have some legacy, but the main activity today is fleet management with labor, which is growing by 15% a year. It's a good business, and it's managed by, Joao, just so you know, right? CS Brasil does not have its own presentation, but just to give you a glimpse of where they stand. So what have we done for last year, we created CS Infra. They received the assets which were under CS Brasil. I'll be briefly going over each one of them. And that we have Ciclus coming over from the family. And as Fernando said, JSP delegated at minority shareholders was a unanimous vote. And Ciclus is now part of CS Infra. So CS Infra was emerged from all those moves, quite diverse. We do have a residue treatment arm as well, also a highway industrial Piaui and also -- and BRT Sorocaba as well. And as I said, we have evolved significantly. We bought people -- we brought people from the market, specialists in their business. Marcos Tourinho is well experienced in the sector, especially in the port front. He is the leader of CS Portos. So they are leading the other 2 business. I'll give you a snapshot of that in a moment. Now we also lead highway in the group. Renato in and BRT and Adriana was already leading her business. So just as a reference, in terms of maturity for those business, Ciclus is the only one which is mature. So this group of projects leads to an EBITDA of about BRL 500 million and a net income of BRL 200 million. So very well structured and mature and profitable businesses. Now briefly updating the highway in Piaui. We have been moving along really well since we took over and we started the maintenance of the highway. We started the civil work. So -- it's being well received by the local community. I haven't included any pictures, I apologize, but it's moving really well. And we expect that by the end of the year, we'll have the toll plazas installed. So a relatively small CapEx and no time, we'll be starting to have some revenue in flux. And we will also count on funding from BNB. And it is now in its final phase of approval with very attractive terms. And the same thing goes for Aratu. We are taking over in June, and that means we'll take over the operation. They already operate their transportation terminals. So we'll start the construction works to optimize the port and will take over the operations. We have already evolved on the funding front under the same terms that we'll enjoy for the highway, IPCA + 2.4% from BNB. That's the type of project we like and will continue to explore. We are going to make an investment, but we already have revenue coming in right off the bat. So starting in June, we'll take over the operations, as I said. And Sorocaba's BRT, we have already made most of the investments. We have a picture of the terminal, very modern terminals, solar energy light structure. We are already having revenue, BRL 83 million in revenue. And next year, it will become fully operational with its own cash generation. And lastly, Ciclus, the big news this year. Ciclus, if you don't know, it's one of the largest landfilling operations in Latin America. They do -- actually, they manage residue and transforms residue, and I'll explain that in more detail on the next slide. We daily receive 10,000 tonnes of waste. We have a contract with the City of Rio with an agency for residue collection. So that's an operational asset. It does generate revenue and cash and what have we done at Ciclus? In addition to receiving waste and treating waste, we have additional revenue linked to other activities. So this is a way to explain this. This is the current picture of the landfill. You receive the waste and you prepare the structure to receive the waste. One of the main byproducts is gas generation. There is a pipeline within the landfill structure, and that cash generation at Ciclus, it says 21% here, but we are reaching 23,000 to 24,000 in terms of gas production through that operation. Today, we sell those 21.5 -- at least 15,000 we sell to a third-party contractor and they have a biogas treatment plant, and that provides a revenue of BRL 60 million. So at a relatively low cost. The surplus of gas we bought to motors, to engines. The engines will take that surplus gas and generate energy. So that adds revenue of close to BRL 5 million. And we bought another 4 engines already counting on that surplus of gas, and that should become operational in mid-2023. Also important is to generate carbon credits. Today, we generate 100,000 tonnes of carbon credits a month. Today, we have a very important inventory of 3 million carbon credits. We decided not to sell a year ago because prices were not attractive. Prices have improved since then. Of course, the war didn't help. But there is a very positive agenda in Brazil relative to carbon credits. So we will monetize that. Thinking about the stock we have, 3 million in carbon credits and prices are around USD 5. We're talking about BRL 70 million in credits. And another 100,000 monthly generation. So all of that makes Ciclus become a much higher -- a much larger business than merely receiving waste. So that's a very important asset. So for CS Infra, that means a very interesting and attractive type of diversity. So we may be able to do some things to complement those revenues. So overall, that's what I had about CS Infra. And I'll be available for questions or comments at the end. Thank you.

[Interpreted] Thank you, Barreto, for your participation. Very nice to see how things are moving across all [Audio Gap]

[Audio Gap] [Interpreted] values for the segment, which is much more than selling cars. It's much more than selling cars its service, mobility is a lot more. And Automob transmits that to the consumer. I like this very much. It shows a highway, as it's been said, it's an opportunity in this segment, opportunity to grow, especially in Brazil, which is a country which is maturing fast. And I'll now be talking about this new holding. This new holding is made up of SIMPAR as a controlling part. And shareholders that many believe what might did in this challenge of transforming the segment. Let me press the button here. Automob now becomes the holding that will control all the other companies below Original, Sagamar, our acquisition in [indiscernible] UAB Motors here in Sao Paulo. And here, the used car network And I'll be talking about that in a moment to you. Automob, it is one of the largest dealership networks in Brazil. That's very important for us because we were able to join the segment of automakers, and we were accepted across all automakers. And I want to say 2 important things here, which are now part of Automob. We just to be present across all the main brands in Brazil. Today, Automob is the largest group in terms of brand diversity in Brazil. We have 20 brands. The main brands. We have 4 motorcycle brands. They're interesting such as Harley-Davidson, BMW, emotional brands. And we have a shielding operations, which is validated by several automakers, armored operations. People think that dealerships only sell used and brand-new cars. Actually, a dealership, there's a lot more than that. The dealership is an opportunity for services, which can be better explored. We have opportunities for parts, services and all lifestyle segments, especially for emotional brands. If you have emotional products such as Harley-Davidson, for example, just to give you an idea, customer across their journey with Harley-Davidson, they spend as much money in accessories as they spend in their product. So that's what an emotional brand is, and that's of our portfolio now. Insurance, financing, that's a way to make products more viable to customers. And as I said, automotive services, customization and of course, armored transformations. Also important to mention is to have customers at your base throughout the whole journey. Customers oftentimes might change their social status, they might change their economic status. Then if you have a group with few brands, you will lose customers when that happens. Customers will look for brands, who do not have in our portfolio. At Automob, we have the largest portfolio of brands in Brazil. So they will become loyal to our brand. So throughout their, we have products and services to meet their needs. Our geographical spread. It's important to say, we are present in 4 states. Those 4 states account for 44% of the country's GDP, 64 stores that we already have. So what happened with Automob across those few months? In the last 6 months, you saw the evolution, a company that moved from BRL 800 million in revenue to BRL 4.2 million -- BRL 4.2 billion, sorry, in revenue. That's an increase of fivefold through acquisitions. So just to give you a guidance for SIMPAR Day 2021, we mentioned that we would become a reference in the automotive sector. Today, we are here to talk about a bit of what happened throughout the year. We moved to 4 states. We are now operating across 4 states, 19 cities, the largest brand portfolio in Brazil. And we have started working in new segments of the automotive service industry. So those are accomplishments that happen during this year. Transformation through acquisitions, we moved from 530 employees to [ 2,631 ]; 2 brands to 24 brands now; 8 to 6 -- 19 cities; 13 stores now 64. Sales, we have multiplied number from 3,654 sales in retail to 19,000 (sic) [ 16,969 ] used cars, 4,000 to over 10,000. So just to give you the numbers based on what we promised last year and what we have accomplished this year, that shows you the size we have reached and what it can still become going forward. In Brazil, we do not have a very mature car market yet. And to do that exercise, what have we done? We resorted to the American market. In the American market, we see that the main automotive groups have a participation of 1.5% in the automotive industry. In other words, 1.5% of share over the whole volume of sales of cars used and new. And we can transfer that to our reality here in Brazil. Automob, even with all the acquisitions we've made, we only have 0.2% of participation in those segments. So remember that little age for Automob, look at the highway of growth we have now. The opportunity we have to grow in this automotive retail, not only car sales, but in solutions for mobility. This is just an exercise. Now maybe in Brazil and the U.S., people per car, Sao Paulo, that relationship is closer to 2.3 to 3.4. But the Brazil average, people per car is 4.5. When you compare the Brazilian, we're talking about 2.2. Look at this organic potential that we have. The country will grow, people will move up socially and financially. It's a country in its infancy. So we have a great opportunity to grow in an organic manner. Of course, through M&As, acquisitions and also in the long run, we'll be in a position to grow more organically. Well, speaking a bit about the future and about the focus we have invested in terms of cars and what we intend to do in the coming years. First, I talked about our used car network. We talked about an independent network for used cars. Why did I mention that? Because we understand that a used car is the gateway for our customers, the entry level. The cheapest car today costs BRL 65,000. That's why we want to have a well-structured scheme for us to reach entry-level customers. And when we start our used cars -- used car network with the validation from an automaker and a dealership, we'll be able to gain the credibility from those customers, and they will be able to buy their first car. When they joined the [indiscernible], we can load them to all our brand portfolio. Well, diversification of our portfolio. Several brands, as I said, several services and products, that's what we believe is the future. We need to offer customized products so that we can help customers in their mobility journey, an important topic to be a one-stop shop to have an integrated solution for customers in 1 single place. They can buy a new car, maybe they need a financing line or maybe their social line has changed and going to have a customized option for them. So we want to offer them that opportunity as well as a one-stop shop that does not need to be a physical store. That can happen virtually or digitally. So we need to have -- we need to have the same solution for the customers in person and also digitally. Okay. Now an important point with the union or merger of several assets as Renato and Fernando said, our company wants to have other great companies to work alongside us. And more than good companies, we want good people, talented people, people with knowledge of the retail car market and they are part of our asset. When we acquire a dealership, the greatest asset we are acquiring are the people that come along with that company. So when we choose healthy companies, we have great assets in hands and with great assets, you can share knowledge, you can share best practices, and you can disseminate this through your business that gives you agility, good performance and productivity. But of course, we always keep the company's independence and we respect because we are a concession, we are a franchise. So we respect the OEM's guidelines. So Fiat is Fiat, Volkswagen is Volkswagen, and they are all individual and they have their specificities that shall be respected.

Now a topic that everyone is talking about, digitization. Transforming physical brick-and-mortar stores into digital stores. Do you want to do that?

Yes, we do. because we believe that a brick-and-mortar store works from 8 a.m. to 6 p.m., but a digital store works 24 hours a day, 365 days a year. So we want to provide the same experience to consumers, be them in a brick-and-mortar store or in a digital stores. And we want to innovate so that customers can have their journey in the digital channel from end to end or they might start digitally and then visit a brick-and-mortar store and continue their purchasing process there. We believe that in the future, we're going to have a physical channel, the digital channel and also the hybrid channel because cars are expensive, and the consumers might not want to complete their process digitally, but they can start their process at home, sitting on the couch and then conclude the purchasing process in a brick-and-mortar store. So we now have a mixture of the physical and digital, and we're going to work really hard on that platform. And when you have scale, I mean, a lot of our revenue comes from F&I, financing and insurance. So with the scale we have, we're going to be more competitive and we'll be able to negotiate the best conditions with banks, and we'll make use of Simpar's ecosystem and Paulo will be here to tell you about our [indiscernible] Bank that will support us and will bring further opportunities to make it feasible for customers to purchase a car, a service or any other mobility means. That's all. I'm out of time. I have actually exceeded my time a bit, so I apologize. Thank you so much for joining us. This is my first time speaking in front of investors and shareholders. I'm used to talking to our sales team only. So I apologize if I haven't been perfect. This is my first time. So thank you very much.

Thank you so much for your presentation. Now let's hear from Paulo Caffarelli, the CEO of the BBC Bank.

Good morning, everyone. Welcome. It's a pleasure to have you here in person. And I would also like to greet those of you who are joining us remotely. I'm feeling like the last player to take the penalty before the game ends. But anyway, we've been talking about all of the companies in our group where we come from and where we're headed. And all the investments that were made throughout this whole time for organic growth and also growth through acquisitions. So we have to look at our financial branch, our financial arm to see how it can be adapted so that it can be more effective for our reality. The idea of our digital bank is to reinforce our ecosystem. It has existed since 2014. And our goal is to enable us to have more businesses within our ecosystem. This creates a growth avenue, not only within our ecosystem, but also outside this ecosystem as a mobility bank. In Brazil, with the consolidation of banks, when you see 90% of the banking businesses today are in the hands of the 5 top banks. And in Brazil, you need [indiscernible], capital and funding to participate in that industry unless you are a niche bank, and that's our main goal. That's why we are adapting this bank so that we can be increasingly present in businesses involving mobility. So we are working today for you to be able to act within our ecosystem. Everything that generates financial businesses, and then we want to be able to use this expertise to operate as a niche bank in the mobility segment. So time line here. We started in 2014 with BBC Leasing. BBC Leasing ever since 2014, worked with our financing schemes for heavy or light equipment. And then in 2019, we also created the digital account, Conta Digital, which was key for us to establish payment for freights. All of the freights paid by [indiscernible] is paid through our BBC Bank. That accounts for like BRL 1.2 billion in the last 12 months. And a very important landmark happened in December 2021. We were authorized by the Central Bank to transform from a leasing bank to a multiple bank. We got this authorization in December last year. And in January 2022, we changed the way we do fundraising. And now we're able to raise funds at a significantly lower cost than we did in the past as a leasing company. And today, we do that through many different platforms of partners we have in this market. In April, we created the first business of this multiple bank. It's considered a multiple bank because it joins CDC and Leasing. So as a multiple bank, we chose to offer these 2 products. And these are 2 products that are very much related to our business. So starting in April, we operated with CDC only for 15 days, but we reached significant volume. And in May, we are -- we have been consolidating this new step. And what is ahead of us? A very specific focus on legal entities, considering the synergies we have in our ecosystem, loans, financing for shop owners when we see Renato's relationship with the stores at Movida with over 1,000 stores registered. Oftentimes, traditional car stores do not have the same type of funding as dealers do. So that's another point we're going to focus on. And also anticipation of suppliers. We want to prepare this bank and give it robustness so that it can work on all of these day-to-day operations. And then we'll have new products like for individuals, products for legal entities and other payment means. So now we are a multiple bank -- we have a portfolio of BRL 274 million. This is just the beginning. This is going to grow dramatically, but we have digital accounts as well. In the last 12 months, we processed 2.5 billion transactions and we have freight payment, as I told you, 12 months of the year of 2021. And in the last 12 months, we have reached BRL 1.2 billion and field management of around BRL 72 billion. Now just a quick snapshot, so that you understand the magnitude of the Simpar Group and the magnitude of our business and our role in this. When we talk about Movida. Movida sold in the last 12 months, 54,668 used vehicles. On average, half of the vehicles sold are financed. So we're talking about 22,000 vehicles that can be financed. So that's what we had throughout our history on average. Now when we look at demos, both for used cars or used vehicles as well as new vehicles with all of the dealers that we have at [indiscernible] then if we consider Used cars are green and yellow line [indiscernible], we're talking about almost 4,000 pieces of equipment sold in the last 12 months. That's also a significant volume. [indiscernible], they trade brand new trucks mostly, but you also have tractors and other heavy equipment included here in this process. Now at AutoMob, we have over 27,000 used cars sold in this period of time. And then you might say, "Well, but you're not talking about brand new cars. Yes, that's not our focus right now. We are not competitive enough to compete with the OEM banks because of the funding they have, but we're very strong in used vehicles, and we've been very competitive in that segment. When we look at the Simpar world itself, we have 36,000 employees, 5,600 suppliers and we pay -- not to mention our CapEx, we paid BRL 3.5 billion to suppliers in 12 months. That's another point that creates a great opportunity for us, especially when it comes to anticipation to suppliers or payment to suppliers. Now of the BRL 3.5 billion we pay in freights, we have over 36,000 recurrent service providers, right? Actually 50,000 recurrent service providers. So now with TruckPad and with our bank to work in this niche, you can imagine what is ahead of us. Now to conclude, I brought you a snapshot of the potential ecosystem, the potential mobility ecosystem because I told you we want to be a bank that develops businesses within Simpar's ecosystem, but we also want to be robust enough to look outside the group as well. And when we look at the whole mobility ecosystem, we're talking about 70 million people and 1.2 million legal entities. The national fleet vehicles today is of 38 million cars and their age is around 10 years. And when we look at heavy vehicles, we have 8 million trucks that have an average 15 years of operations. When we talk about autonomous truck drivers, the age of their truck is 20. And for companies, the age of their trucks is 10 years. So when we look at the opportunity or the addressable market, this is a segment that is still very incipient in Brazil, and this represents a huge opportunity. And looking at the ecosystem as a whole. App drivers, million drivers. Now the value chain, gas stations or service shops, maintenance shops, 163,000, 170 borders that demand services from our segments. And when you look at consumers, we then individuals or legal entities, 72 million car rentals, 11,000 throughout the country and 8,000 dealers and stores and we don't want to work isolatedly here in this process. Our business requires partnerships, as we said in the beginning. And at BBC Bank, we have already established partnerships that give us opportunities to make businesses outside Simpar Group as well, and that is important to us. The bank needs to grow together with the growth of the group, but we also want to gain robustness to act within this mobility ecosystem. That was all. Thank you very much for your presence here today. It's a great joy to have you all here this morning.

Thank you, [indiscernible], once again, for your presentation. So to complete the presentations of Group's company. I would like to invite to the floor Fernando Antonio Simoes once again, and then we can move on to our Q&A session. Fernando, you have the floor.

I have several notes here, and I'll try to organize myself here during my presentation so that you can understand what we're going through right now. So I'd like to start by thanking the whole team that was here on stage, making clear and objective presentations. I said in the beginning that this is not what we do, and we're very anxious to be able to tell you what we've been doing, but their work together throughout all of these years resulted in the transformation of value to shareholders. This is the result of the hard work of our whole team. Without any follow-on offer, the company was listed in 2010, as you know, and the company has executed its transformation moves and the acknowledgment of that started in 2018, 2019. That's when the market acknowledged our transformation and we -- our shares gained value. And this is something that we executed throughout all of these years in 2013, '14, '15, and the results started to be seen much later here in '19. And you are experts in this. I'm not here to assess or analyze anything, but to share what we're doing. So what I'm trying to say is that we're very happy with everything we've been doing, but the CapEx that was done in the last 12 months has not been reflected here. All of the movements made by CS Infra are not contemplated here. So as far as I see that the transformation that is to come ahead is much greater than that. So yes, you do see our execution, another strength, but we are building a new cycle. I have 2 or 3 slides left so I want to share with you the moment we're going through right now. So when we look at our pillars, how are we positioned? What are we doing? And what are we going through? Very briefly, I'll come first to you until 2015, '16, '17, we had Delma, we had embedment procedures, interest rates going up. very diverse, if I may, a moment as we were building our business. That was a very tough task to our resilience. It couldn't be a more challenging situation. But we navigated through all of that with a lot of dedication. On the next slide. So when we talk about culture, behavior, succession plan, what I mean to say is that those are the basis that will support us for the next coming years. Everything which was done was done because of this great team that we have put together across different independent business units. We wouldn't have done it without those people. We live this business 24 hours a day. I was talking to Denys. Last week, we were at a conference, and we visited an investor. And we talked about people and that we're talking to us and I looked to the side and were arriving, and that's the takeaway as we talk about people and I told my investors, look at those guys, I of the Tiger they really add it. That's what I call succession. When you look at those people who presented today, a few years ago, we did not have CS Infra. We did not have Caffarelli. We did not have we did not have those people, and that's how we execute our transformation on a daily basis. So we are simple, we are agile, but -- our customers, they have cell phones, they can call whoever they want. We live to our business, of course, our families are also important to us. But -- we are in this business, as I said, 24/7 working as a large company and thinking as a big company and executing with discipline. But we are fast, agile and humble. Here, resilience and different sectors of the economy and so on and so forth. I could spend a lot of time but I will be brief to go through the Q&A. But I'd like to share with you 1 final thing. Stop and think when we look at logistics in JS cell, different moments, different results. But look at the fundamentals. We always had a proper fair pricing policy with our customers. We have been made strategic acquisitions, consolidating that and acquiring new growth opportunities. Movida is a casing point. Renato mentioned, Movida has executing their plant, not because they were lucky because they worked really hard. He also talked about HB plan, the cars, the way we treat our customers in summary. The execution has been extraordinary in terms of quality. And that's why we see those results. We are focused on our clients. Today, our average age for the fleet is 9 months. The competition is at 17. Are we wrong or are we right? Would you like to rent or have in your fleet a 17-month old car. That's what I call long-term relationship building. That's what we believe in. At Vamos, can we continue growing like that? We haven't even started. It's a huge opportunity, but are you going to sell trucks at this level. We are talking about 5 years down the road, Brazil's fleet needs to be renewed. And with the dealership ecosystem, that's a totally different ball game. We are -- even when we talk about dealerships as explained, it is a huge opportunity. And today, we have the cloud, the scale put together to address that. This is no longer a company to continue to grow to reach scale to become competitive down the road. That has already been done. Growing today is an option. Our businesses profitability its sustainability. Of course, you've always had sustainability, but not always profitability, but we're here for the long run for the long-term survival. Governance and consistency and so on also important. This all we've accomplished -- we accomplished thanks to our Board, to our governance, to our discipline. Before I move on to the last slide, we talked about the following: what about 2025, 2024? How do I see this company going forward in the mid to the long run? And I'll tell you how we see our business. I have to confess that if we were to go back 10 years in time, I would never say we'd be here today. But we thought we could. We were executing on a 2-, 3-year basis. So we're doing that, but we're also sharing other actions, other moves that will take us further. I'll give you an example here. Number one, we're creating a people commitment at Simpar to look at the moment we're going through, but also to look ahead. We are creating a strategic planning group to look at what we're doing and what we're going to do later. Of course, this planning committee will last for 1 year, 1.5 years but to come up with the basis we'll have in 2025 to start our next 5-year cycle. All of that to make sure we'll have long-term survival and that all while preserving our culture and our values. Of course, we are trying to modernize and ramp up what we do. But we do not want to lose sight of our culture, our DNA. of working with our clients, customers of being agile or being simple. That's key to our performers. New business with good growth potential with profitability, but also respecting in ESG. It is key to do that. you create opportunities with the clients. You do cross-selling. You need to be fine-tuning all of that all the time because we like to complain about Brazil, but it's a country rife with opportunities and you need to do that with responsibility. So we need to work with our business and also explore potential opportunities. Number three, let's start by the end. We are not selling anything. But at par, we need to be open to that. If tomorrow, we need to divest something to strengthen other, we'll do that. We have an open mind about that. Something is not forbidden here, not thinking is forbidden. And why do I say that? Barreto did mention the buses business. They went through a major transformation. It used to be a very important position, but we divested, and that may happen for us. If that will help strengthen the group, that will happen if we're going to go public with other companies in the market. Nobody works to go public, to be frank with you. I value generation. But even more than that, our work does that. And our work might bring about more opportunities to go public, to generate value for shareholders that we contribute to the company's development and that will allow us to bring in more fresh air to the company. I'll make a side company -- side comment now. When you look at those sold and the stay with us, I admire him very much and as part of the company, and he saw people who sold and who remain as shareholders. So we are building a group in which people who sell to us, they remain as shareholders or as independent consultants. So this has been done responsibly. I had no idea about what's going to happen. But I realize that there are lots of people who have good companies. But when they work on their succession, they have come to us to do that. And that has been well attracted by the automakers. So that's where we have a positive transformation. And CS Infra is a casing point where we can share opportunities with a larger market, and everybody wins, the company and shareholders. The growth of our organizational structure that happens every day. And this happens to our people committee. So that we can support this growth. Some people look a decent thing, well, this is crazy. Maybe if you're looking from afar, but if you're close -- but if you're close, I can assure you that we are executing very responsibly. We work with our own resources. We have several executives, as you know, who hold shares of the company. Some of them are partners of the company that you and the market for us to deliver responsibly we need to have that. Nobody can say that for the past 12 years as a loss of company. We have always met with investors whenever we were looked by them in a very transparent manner. We talked about everything with everyone. Even when the market said that we were bucking the overall trend. So we are here to prove that some process processes never materialized. And those companies you have seen here today way and above all that. Our alliance, as I said, is with our customers, they fund us and also a commitment to our people, independent company, as I said, we need to have focus, responsibility and to have agility and going abroad, becoming more international. We need to have a currency mix. We think it's important to have that in our sustainable strategic planning, but we are not in a hurry. Sustainability also means responsibility. So this will be done whenever we feel safe to do it at the right cost, at the right price step by step. So those are some of the few points I'd like to highlight how we see the business going forward to survive in the long term. I'll share something else with you. Some of you know this already. 5 or 6 years ago that having a credit meeting at a bank, I finally understood something about succession. I was told to talk about our succession and I told them for me to be working today, we are growing this fast. It's because somebody is doing 80% of what I did 3, 4 years ago. So succession is taking care of. But the question is the following, if you go out now and you are run over by a bus, what will happen to your company? Then I looked at when I said no, now I understand. I want to know what you're doing today, not what you did 2 years ago. So what I did was put together a small booklet. It's something were to happen to me, what everybody would be doing, could be an illness, an accident or whatever. We were updating that every now and done, and I reviewed it just the other day. Today, I am the CEO of a holding company. I contribute, of course with our managers. We are always taking them to meet the targets, but they are independent. They execute as they want. The execution is now happening. So this old booklet is now -- has now been reduced to a couple of pages, not to mention the other growth opportunities. So succession is something that creates the company across all levels. So that's happening very smoothly. Why? Now moving to the final slide. I have I'm way above my allotted time, I apologize. So what's the potential of Simpar in terms of foundations where we are headed after we talk about what we've done. So we have our gross revenue, EBITDA, net income for through 2022. Annual growth, an increase in margins. We talk about 2022, Q1 in annualized terms, consolidating M&As. There is no CapEx projection, as I said, which was past quarters has not been included here. This is mere pure revenue for Q1 annualized and transformed. That's basically 2030, no estimates at is for you to conclude that. But as a recap, 3 slides, which were shown to you before. And a final thought the transformation of the company's value, all this growth from '21 to '22. This did not happen because of the pandemic. Some segments were transformed by the pandemic the major transformation in our business dropped by the pandemic was that our asset base even for Movida, which has a shorter life cycle, hasn't felt that the car they bought in 2020 is worth a lot more today, and the same goes for the car bought in 2021, and the car bought in 2022 is already up by 9%. Then he'll say, -- are we going to sell that? I do not see -- I never saw used cars being kept in the lot and not being sold. It's merely a matter of the right moment at the right price, but the only company that will have a good used car portfolio to sell, will be ours. When you go to a store and check a 9-month car, it's completely different from a 17-month old car. And are you comparing that with is a brand new car. And if you do the math, you're going to buy a used car. And you talk about trucks, it's the same thing. A new truck is 40% to 50% more than we paid 1 year ago. So that's a very major asset transformation, which is not yet reflected here. And with that, the infrastructure, our store base, everything we had in 2014, 2015, everything is now consolidated. Very focus on customers, the same management model, the same culture and a high growth potential and a lot of sustainability across margins, results and now responsible execution. So if you were to annualize all those numbers, you have a very positive message going forward in terms of development, way above what we did for the past 3 years. We're happy with what we did. We are ready for the next steps, but we strongly believe that there's a lot more to come in comparison to what's been done. Thank you very much. Let's now move on to the Q&A session. Thank you, everyone.

Very well. It's now time for us to move to our Q&A session. [Operator Instructions] So I'd like to call to stage, and please take a start, [indiscernible], Fernando Simoes, and Paulo Caffarelli, welcome come back to stage. We'll start with a question from the audience here in presence, that lady in the back. Over to you, state your name, if you will, the institutional work and then pose your question, it can be directed to the whole group. Who are we missing here, Dennis? Dennis is on his way. So we can get started. You have the floor.

Good morning. I'm [ Lucas Barbosa ] from Santander. And I have a question about AutoMob. That was one of the companies in the group that transformed the most last year. And what is your growth strategy from now on? The company is exposed to 3 segments that can grow a lot. So new cars, used cars and after sales, 3 segments that are extremely fragmented here in Brazil. So can you let us know where you're going to focus more to grow from now on? Is this going to be organic growth? Or do you also see inorganic growth opportunity? And can you also tell us about the digitization of the segment in the U.S., we have Carvana, which seemed like a very interesting opportunity.

Well, we think that AutoMob's growth will be both organic and inorganic. Organic because we can grow by improving processes and by capturing the synergies of the companies that will come to be a part of AutoMob and the best practices will help us optimize sales per point of sales and retain customers in the auto shops. Just so you know, for this first review, we have 80% of customers going back to dealers to do that, to have their cars service. And then for the second review, only 50% of customers go back to a dealer. The best lead or the best customer to buy an accessory or a part is the customer you already have. So you have to work on improving customer retention at the dealers. So we're going to invest in CRM and relationship and marketing to offer customers advantages and benefits so that they continue to come in to our dealers. Now in terms of the digital world that you asked, there are companies that work digitally and other companies that only work in the physical world. We believe that the ideal model is a hybrid one. Yes, we'll still have traditional customers that will buy their cars and dealers, but we'll have customers from the new generation that will want to buy their cars completely in the digital channel. And we have customers that start their process digitally, but they want to complete the transaction in a store. So this is the omnichannel customer. They will negotiate online and we'll bring that negotiation to a physical store to complete the transaction. So this is the union of the physical and digital. This is what we call the phygital channel. That's the best way so that customers can buy in whatever way they want. Now when we talk about a platform with all brands, and we offer this digitally, we can also break geographical barriers, and this is very much related to what we're planning for our brand in the future. If you sell digitally, you can reach consumers even in places where we're not present physically. So our growth will be based on that as well. I just want to add something here. Our organization is very responsible, and we provide support so that we can grow in every channel at all times, simultaneously. And we say that we have the DNA to serve customers. Why is it that dealers cannot work during the night to service your car and have car ready in the morning. And why is it that we cannot sell a product that includes maintenance costs. We have cars that were in 2,000 kilometers a month. So maybe we can offer a car in which the maintenance price is included. So we think that this is going to be one of the main differentials we have to offer in that segment. And inorganic growth, we want to create the largest used cars network in Brazil and this will be used in the platform that he just mentioned.

Our next question from the audience. We have a lady in the back.

I'm [ Loise Porto ] from Itaú BBA. It's a great pleasure to be here with you. You have innovated by inviting sales reps to be here today. So I have a question. It's about your relationship with suppliers. It's very clear that you are extremely relevant to your suppliers today. This is fruit of the work that you've done in the last decades. And with Automob, this is going to be even stronger. So I have 3 main points I'd like you to address. First, price. There seems to be a slowdown in the increase in car costs. Do you agree with that? What about the supply? Is there a better balance between the supply and demand of cars and trucks? And discounts, what is your negotiation like right now? Are OEMs being strict when negotiating discounts?

Thank you very much for your question, [ Loise ], and thank you for joining us for accepting our invitation to be here. Actually, I would like to thank you all for joining us this morning, either in person or online. Our alliance with suppliers is long-lasting pace. It dates from way back. Our DNA is to serve customers, but we also want to be partners with the suppliers because on our own, we cannot go far. I remember when we had the [ Cruzado ] plan in which we had a goodwill in everything. There was a shortage of everything, but we never had a shortage of trucks in our industry. Some of you were children at that day, but the OEMs are still there. And we purchased cars to rent since the beginning of our company, and we have been purchasing machinery since the 1990s in our company. So people retire, but their stories remain because companies are made of people. So yes, we have a relationship with suppliers. So we never have had a shortage of tires or trucks or even cars because of this relationship. And by being close to your suppliers, you know what's happening in the market, you know what the trends are. So our business is like a pie. You have certain prices for wholesale, certain prices for retail, and what we want is to be near our suppliers to be seen as a wholesale customer and share that pie. But we don't want to be attacked when times are hard. We want to have a healthy relationship, and the same applies to cars. Movida grew when no one was buying cars. So of course, God was on our side. The team worked really hard, but we developed our businesses. And maybe if we had different competitors, one of our segments would not exist. And yes, we are also suppliers of the OEMs that provide services to us. So this is a 2-way street with our suppliers. And of course, we're always working hard for them not to increase their costs. But that's a very strong relationship. And the companies are completely independent. So Automob will follow its track as a dealership network, but we will work respectfully following the conditions of the OEMs, and we want to be an important arm for OEMs. But of course, all of the companies are completely independent. Car prices. They have gone up dramatically, but I've never seen prices being reduced. Cars were very cheap in all senses and OEMs did not see any visibility of operating here. Ford left, other OEMs left. And this value transformation happened because of COVID, but it led car prices to a whole new level and also tariff levels that were frozen for a very long time. But the whole mix changed prices, not only cars. So I think this transformation is here to stay. So in retail, you can get discounts depending on what's happening in the market. So yes, I think that the car prices are no longer going up. But I don't see any major difference in prices for the assets we already have or the assets we will acquire. On the contrary, we still have cost inflation. And I think that OEMs learned how to sell responsibly in order to have a profit. And 2 years ago, to rent you would have to use BRL 80 to rent a car here in Sao Paulo. But today, it's BRL 130, and we might have to increase costs even further. So we're talking about a new level of prices and a new level of cars, and that helps the whole system so that we don't go bankrupt. Now the supply. I went abroad and visited a few companies, and I saw that everyone thinks that the supply will only normalize in the end of '23. And we have OEMs here in Brazil and around the world manufacturing 25% less than what they produced before the pandemic. So I think that's pretty much the level it's going to stabilize at. That's the supply we expect. And of course, we don't want excess supply so that we don't have a price problem in the future. So that's what we expect. And Vamos, JSL, that has a bit of assets because it's asset heavy; and Movida, that has made an amazing planning for different moves than the rest of the market that strengthened our partnership with the suppliers; and the Vamos, with the quality of stock it has for the price it purchased, has an amazing competitive edge. So I think that our planning execution has been outstanding. I just want to say something about Vamos. In the case of trucks, we think that the truck prices will go up by the end of the year because of the change in pricing. But Fernando said that we have a competitive inventory. We have put that inventory together at the right point with the competitive prices. And that's going to appreciate our asset base. We are expecting a 25% increase in truck drivers by the end of next year. That's going to appreciate our asset base and that translates into results in the next 5 years because all of the asset base that is rented or that is an inventory in stock will appreciate. Yes. And we see an effect in Vamos and JSL because JSL won't have as many competitors with these interest rates. And if you look at an equipment that if you -- to work, a piece of equipment to work in mining, the price is extremely high. So not many people will be able to afford that. And those that do the math will rent rather than buy because it's much cheaper to do that, especially with this price level.

Okay. Let's have a question from someone online, Victor Mizusaki from Bradesco BBI, say, congratulations on the event. And the question is for Gustavo Couto. Can you tell us about the recall and needs of the first advertising campaign at Vamos?

Thank you, Victor, for your question. Well, we prepared for this throughout time. We prepared the company with process controls and service levels and inventory to be able to accelerate and gain national relevance because we know that the Vamos brand is not that known yet. So we ran that advertising campaign, and we prepared for that for years to start this campaign. Of course, that has just started just 3 weeks ago. But this led to 2 effects. We went from 20, 25 leads a day in the first quarter to 60, 65 leads a day after that media campaign. And another interesting effect was the qualification of leads. We went from 73% of qualified leads. 27% were unqualified leads, and the curious people who are not actually interested in having businesses with us, and that increased to 77%. So this was the target audience of the campaign was right. So the new leads are coming, and we have new businesses ahead of us. We're very excited about that.

Okay. Great. Let's have a question from a man there.

I am from Morgan Stanley, and my question is also about Vamos. So you are reaffirming that you're going to reach 100,000 units by 2025. Can you revisit how much of this scenario will be supported by the experience of the rental market in the U.S.? Are the markets comparable? Do you think you can get some insights or lessons from the U.S. market? And also considering the short-term horizon, Gustavo, you talked about the resilience of the market and the low penetration, but with Euro 6, will there be a risk for hangover next year?

Well, we look all around the globe to understand what's happening abroad and see how we can learn from these other markets. So we looked at the U.S. market and the European market and the penetration of the rental model is much higher there, 25% in the U.S. And this is maturing throughout time, in Europe, 20% to 25% depending on the country. So that shows that we have a great opportunity here in Brazil as the culture of rental is established. The same happened with the light asset segment. There is a cultural change happening in Brazil. And abroad, we have a practice that is based on short-term rentals. We're more based on long-term rentals for 5 years, 4 years, 6 years. 90% of our contracts have a duration of 5 years or more. Now about Euro 6, we have a backlog of the demand here in the Brazilian fleet. Everyone is saying that we're going to have 140,000 heavy trucks being sold, and there is a small drop expected for next year. With the increase in prices of Euro 6, rentals will be even more important, more affordable alternative for those that need because the fleet will be a year older. So you have the possibility of lowering prices, and this is going to be a new growth opportunity for Vamos because any increase in prices and purchases when you have higher interest rates, you make companies think about their alternatives and rental is the best alternatives here with lower costs and greater productivity.

Okay. We have a question over there.

This is [ Lucas Lage ] from XP. I want ask Antonio about CS Infra. In the last 2 years, we saw the consolidation of the platform with the incorporation of BRT from mobility. And then you got -- you won the auctions in [ ARA2 ] and now with cyclos for the environment management segment. What is the strategy now from now on, thinking about your infrastructure? Are you planning to integrate the assets you put together in recent years to reach the maturity level by 2025? Or are you planning to expand the platform by acquiring new assets in the segments where you already operate? Or are you even thinking about diversifying the segments where you operate, maybe road concessions and working in smaller auctions like [ Transera ] did or cargoes at ports? I just want to understand what you're planning for your infrastructure platform and what we can expect from now on thinking about expansion or integration of your assets?

Thank you for your question. Will you help me here Fernando?

In the case of CS Infra, which is even more obvious than what we're doing at JSL, sometimes there are no synergies. You cannot join a Board and a road. You have different managers and different operations. So at CS Infra, I mean we have a holding to invest in long-term contracts, and we're going to focus on service provision. So what are we looking at? Projects that have these characteristics in which the CapEx is not the focus. Of course, CapEx is a part of it, but we want a long-term contract, resilience in revenue, revenue hedging and appropriate financing conditions. That's the example of the projects we had in Bahia and POE that makes all the difference in the project. And when we ran our return analysis, we decided to take part in that bidding process and we were the winners. So in each one of these businesses, I mean, we can invest to consolidate our CS Infra platform that will become even more robust with time. And just like we're doing with Automob, we can use our infrastructure to do the same move here to have this diversified flow. So we'll continue to do more of the same, but being even more careful now because of the hike in interest rates. But I think that the environment is favorable now because we don't have many competitors. In large projects, you have 1 or 2 players. And in smaller projects, we don't even have infrastructure players to compete. So the team that we're putting together in our infrastructure, we want to be a relevant player. But of course, this is something gradual, step-by-step because we want SIMPAR's commitment to leverage and return on investments to be kept.

Just to add, we need to assess the size of that in the long run so as not to compromise our returns, that's what we're going to be looking at. But I'll give an example. Ciclus, the largest residue treatment center in Brazil, one of the largest in the world. They treat 290,000 tonnes of waste per day. So that is directly linked to sanitation projects. But along the way, some of those businesses might come up with so many new opportunities that will have enough size to become independent business. But this would be consolidated under CS Infra, and maybe in the future, we'll have companies working on concession plans. We have somebody with his hand raised.

[ Lucas ] from BTG. I like, Denys, when we talked about the holding discount. Everybody here in this room is speaking about that. The impression I have, Denys, is that the market finds it difficult to price the group's capital allocation when you saw that leverage curve early on. And in Brazil, we still had a 2-digit interest rates, and you were investing to build Vamos and Movida and the market is not paying for that. And today, nobody doubts the valuation of those companies. So when we look at the group today, allocating capital and infrastructure and bank, that's a -- the question is, where do you think the market is leaving money on the table? What are we not seeing there to have that holding discount, the highest holding discount, in history given everything you've put together through our time?

On our end, we have this challenge of showing value creation of what's already closed. The evidence we have when we look at the market is that the market was only able to see that when we formally went public. So it caught your attention about value creation for shareholders. As we invested or injected capital to build those business, not only from the IPO day today, but the magnitude of that growth in value creation is huge, 500% in Movida, 1,000% in Vamos, 300% in JSL, we are already doing that, that is happening. And also, when we look at everything in consolidated terms and you see that volume of capital being allocated with growth, I did mention about a company that exists in the company that we're building. So from the point of view of a company that's doing business, we use the term holding, but again, it is a structure to create value. So within this analysis, the free cash flow before interest of a company, which is in maintenance, if you do a direct math as compared to EV, you may get 50%. But if you remove from EV that capital, which is part of the debt and which is linked to growth, this will add up to 20% of free cash flow. That is a lot. So I think on our side, we do have our homework and communicate the following: SIMPAR is sitting on top of a series of open assets, all of them are growing. And as I see it, pricing is compressed. I don't know if you realized when I show that SIMPAR was negotiating the same thing in Movida for years, Movida's value was almost flat. They had 60,000 cars, now 200,000 cars. So if you are -- within SIMPAR, you have all those levers, Vamos and others, and our potential of Movida plus that this is of creating new value. Our [indiscernible], CS Infra are cases in point. I know we do have a challenge of maintaining our deliverables. So we want to deliver so that we can trust our execution when Vamos came to market. The market was suspicious of execution. We couldn't do any business early on. In the second round, you had a chance to check that what was preached was delivered. And once again, you will observe that we deliver more than we promised. And I can be sure that certainty has to be translated into a [ same part ] engine now, that's what we're trying to deliver now, value for Movida, for Vamos, for JSL and value for what's being developed. When the market has that conviction that the value will be transformed, I should not be able to -- I should not be negotiating at a discount. I should have a premium because of the flexibility and of our accomplishments and of our resilience, not only regular free cash flow-driven crisis, but also opportunities to continue growing both in good times and in bad times. That's how I see it. Maybe Fernando complement.

[ Lucas ], things are worth what they're paying for it. So if it's not happening, it's because we're not being able to explain that. That's how I see it. We went through a phase where we were building life. We're building the foundations of a building. The building is not ready yet, but you see that the foundations were put together. And there are other foundations being built now. Now the question is, is there a strategic planning? Where are you headed? What we went through shows what we were able to deliver. We wake up every day as if it were the first day. I'm not really sure whether there is another group in Brazil that was able to build what we built in the past few years. Different people but complementary people, that's unique, not to mention what we have in the back office working right now. So this was a segment that people thought did not exist. Movida, Vamos, people did not believe in these businesses. People are as well. Interest rates are going up. And what's new? Interest rates in Brazil were never low. Interest rates will go up. You may have lower profit than you expect, but the group will continue to move forward and will continue to develop always responsibly. So that's what the market -- in time, we'll see and happen. Interest rates, that's how I see it. Interest rates have always gone up and they were never low. They were ever high, but assets also transform. And because you have a different negotiation approach even though when you have higher interest rates, asset values, asset depreciation will be always ahead of that. So we're not talking about a company that only has high liquidity assets. That's what we know how to do. That's our DNA. So combined with what Denys said, maybe it will make your lives easier in terms of deciding whether or not to allocate capital our way.

First you, and then you first.

Renata Cabral from Citibank. Thank you for the opportunity. My question is about Vamos. The company has been growing fast. And my question is about customers. What is your customer pipeline like? I'd like to know what's the breakdown across different types of customers, different contracts that you have signed recently and also about contract terms if you are observing an extension of contracts. And also if you could talk about contract renewals. .

Thank you, Renata, for your question. We are very proud to be able to renew contracts at a level of 90-plus percent. That's a commitment that shows that our commitment with customers is strong. And it also shows that the rental model is here to stay. More than 90%, 91% to be precise of our contracts is renewed. The remaining 9% are clients or customers who have shut down an operation. They stopped operating actually. They no longer need a truck or a vehicle. So they do not renew because the asset is no longer needed. But we have no customer burnout or losses today because of that. We have doubled. We have been doubling on a yearly basis. We've been doubling our customer base, and we have been increasing the share with existing customers. We have 2.3 customers -- contracts per customer, 2.3 contracts per customer. In other words, we renewed a portion of the fleet 20%, 25%. They renewed their fleet. They try the service and then they sign a second contract. We have several customers that have 5, 6, 7 contracts with us. And we haven't even reached 30% of the average fleet of those customers. So there is opportunity for us to more than triple the size of the company, if we weren't to stop going after new customers just there. And also, we have prepared -- when I got the company, we had 4 people in the commercial area, a director and 3 managers. Today, we have 60 people across Brazil. Now we have a larger footprint, commercially speaking, and also a very important diversification across different economy sectors, services, transportation, agribusinesses, infrastructure. So we have a share across all economic factors. That's true that the model is here to stay as an alternative to customers.

João Saldanha from SulAmerica. A question for Denys. It was nice to see when you talk about investments vis-a-vis EBITDA and how EBITDA reacts automatically when you increase investments. Not all businesses work like that, right, to see a return right after investments. Now for the past years, that happened as you decreased the company's leverage. But for '18, '19 and '20, you were investing about 120%, 130% of EBITDA in a year. When we get to 2021, you invested twice as much as you made in EBITDA and that proportion has been maintained twice as much investment as EBITDA numbers. My question is -- you are a very bold group. You are confident in the opportunities you have ahead of you on all of that. But my question is, if you maintain your guidance for 2022, in other words, you have investments higher than cash generation and this proportion of 2x EBITDA in terms of investment, if you will have an impact on leverage, can that trend be reversed at some point going forward? Is that scenario we should be looking at when we look at '23, the leverage going up as of 2023?

Well, we made it a point of bringing those numbers here today. I know everybody looked and saw that first strong start, especially when we put Movida together in 2016. What many people do not know is that looking from a broad, you look -- you see the leverage. But inside, the question is, what is my stop-loss? This is not a tech company. I know tech has been in fashion, not so long, not anymore. We work based on net real assets. So when we put together that 5x, I will get to your question in a moment, but we had inside the following view. I'm putting my money in real assets with a discount. Fernando used to say, "I have a discount here." So our risk management view has always been here, especially for those looking in the long run. So looking from the outside, it may have a feeling that it was all based on revenue. But not from the inside, it was based on building a sustainable business. If we did not have the ability to execute, I'd have a way out. Looking forward now, what have we changed from 2010 when we first went public, the first 5-year cycle for the group as a listed company, for the second 5-year cycle from 2016 onwards? So part of that initial effort is to build. All the businesses are already up and running in full swing. And with that, you're already bringing back returns. When we start building a business from scratch, early on, you only spend and spend and spend. That phase is now over. We now have reached a stable level, which is quite positive and sustainable in terms of a return. Having these organizations sitting here in front of you, of course, we're always looking ahead at going -- as expanding, but the commitment is here. What have we done in 2021? You said you've invested much more than in 2020 and you measure that in relation to EBITDA. For 2021, our EBITDA was BRL 2.5 billion, right? Is that the number, if I'm not wrong, 2020, sorry, BRL 2.5 billion. And we did BRL 9 billion, so several times that. But returns followed up on that. So there was the right reason for it to inject more equity into the system which was the Vamos' IPO. And so from then on, we have -- which they balanced. We have no way to dilute that redevelopment without missing out on growth opportunities. Looking forward, I'd like to move the view we see from Movida. Movida had to explain during Movida Day that they would have a balance turn in. If you were to do that, it's much more profitable now, much more in terms of margin. So the business improved. We have a better margin expansion. We do not see companies losing balance from their leverage level looking ahead. And looking forward, we do not see any need. I'll give you a clear example. We -- in case of Vamos, people say, "Oh, they are going so fast that they might need money next year." And I can tell you, we do not see that need. We have several alternatives and they will be revealed soon. And then you'll understand for -- find as much capacity of doing business that we see today. But for legal reasons, we cannot anticipate that this will be made public soon. But we are quite comfortable for 2023 with no capital and always looking at the commitment so that everybody can be reassured that growth will be balanced in terms of capital structure. Okay. João, I can also say, as a shareholder, how I see the business today. The infrastructures are put together, our bases that have been built. So to do more of the same is better. If you have -- the size we have in terms of Movida, I like to thank you for the questions as usually, but it's important to share that with you. His commitment is to deliver returns, to deliver results with his team and so on. And that's being monitored by the Board. When he delivers that, we'll be growing normally, growth with results. Automaker who won't be asking us or questions in relation to others. So today, we do have scale in place, and that is committing to deliver results. Vamos is also delivering results. If there is a business opportunity, we wanted to decrease leverage, of course. But if at some point, this is something different, we can be sure about where we are going. And you can be sure that when we are ready, it's because you have the prerogative of going out of living, I don't. That's all I do. I have a lot invested in here. So I'm always concerned, but with one difference. If you don't like it, you can leave, but I'd be here to turn off the lights, right? But I'll be here until the end. You need to be paying attention to that, but I won't leave that for the competition. With Vamos, has to pay close attention to that, take the competition, the contracts that I know you've grown because you're quite busy because you were capable. But if you leave money on the table and Movida executes, if you have that room, okay, so that's the planning. That's the agility that makes a difference. It's not a passive holding just waiting to see what happens with the investments. We are happy with what's happening, but we are close to them to help. Sorry to expand a thought, but thank you for your question.

Because of the time, we have only 2 more questions. And then if you stay, stay with us to talk to our executives. But for the presentation, just 2 questions.

First, with the acquisition of Truckpad, do you think about connecting your solution offering commercial -- light commercial vehicles rental at Movida and of trucks at Vamos, creating a sort of heavy vehicles rack?

I'll speak about SIMPAR and then Barreto can jump in. SIMPAR, first. Truckpad was bought by JSL, and they'll contribute with their agility in terms of digital transformation, Barreto talk about that. But without a doubt, both JSL -- JSL's interest brought to SIMPAR's ecosystem opportunities for BBC, opportunities for Vamos to offer more or other opportunities as well. Here in this ecosystem, we do have huge opportunities. The platform was ready and this will happen. And it will also contribute for Truckpad to offer services that they didn't offer before. We believe that, that platform needs to be a financial -- needs to have a financial service or services or a larger industry so they need to offer a different set of services. And Truckpad is a company that was built without all that, but it did not include those services. Now it is possible for them to make that leap. JSL will contribute to their transformation. Will somebody stop using Truckpad because of us? Maybe. Life goes on. We can separate businesses. And Truckpad users will surely be able to have more services available than today. So everybody wins for SIMPAR, the companies, for Vamos and for Truckpad as they go through this transformation. Thank you.

Just to add, Truckpad will not become a cost center within JSL. The company will continue to exist with their management, their team, and they will benefit from our system to develop and become profitable or be profitable. And that's why we analyze that for a long time. But we do not believe in it as a separate business. Within our ecosystem, we do believe in it, and we believe strongly in it. It can be profitable. I came to a moment where they were much tech-centered in terms of increasing users. Now we looked at it and we thought about how to capitalize on that base that they have. And with the services we have, we are quite optimistic in terms of transforming that into a profitable business. And on JSL's, we can accelerate JSL's tech development. That was the main driver for that decision.

I agree with Barreto and Fernando. Actually, Truckpad and all the other acquired companies, they are analyzed with a specific product. Truckpad in the future, you will be comfortable for the results. But obviously, the ecosystem is there to transform into better products for the whole ecosystem, including the clients. Today, JSL, finds it difficult to access some customers, some specific services for some clients, but Truckpad do that. Vamos, we share our base across other specific actions. And that will be done through Truckpad as well. So I see a lot of synergies between JSL and Truckpad. And I see Truckpad being a very competitive product in the long run, transforming something which is nearly a good idea into a real product, okay? The last question now. You in the back.

Well, congratulations. I might offer him [indiscernible] question for Caffarelli. Luckily and thank God, you've got the license to be a multiple bank before the Central Bank went on strike. Lucky you. So the question is talking about the company's balance sheet, how are you going to capitalize that? And if you could disclose the size of the opportunity, I understand it was a great insight to invest and this will be good, not only for the companies in the group, but also in the relationship with supply chain and other stakeholders. And of course, you are limited to your disclosures. So what kind of returns you think you may have given all the opportunities you have going forward?

And I'll tell you what I can tell you. We're not listed, but we are under SIMPAR, right? So what is important to say is that we have an equity of BRL 65 million. So if you do the math on the [ basel ] terms, we have room to grow. Also important to say, something I've been talking to Fernando since the beginning, SIMPAR considers BBC, the bank, as an instrument to develop within the system. So if we move forward, as we expect to and if we need capital, and that has been demonstrated by -- to the Central Bank. So as we have a need, SIMPAR will be with us. Our fundraising, sometimes we compete with large banks. Of course, I cannot fund at the same cost so we need to be very creative in the good sense of the word. Like a matter of faith, we need to be careful with our daily spread. As I said, for used cars, it makes sense, be it light or heavy used cars. For brand-new cars, we do not have the necessary cloud to do that now. But also important to mention and which will be a great help, if you look at everything I showed you in terms of light vehicles, Renato sells 50,000 light vehicles a year. So this sells 27,000. We'll sell a lot more. So we can have an expectation in terms of our opportunities already just there. But also something that needs to happen at the same time. It cannot keep limited to leasing. When I talk about anticipating suppliers, when we anticipate performed receivables for a plan be able to find its stores, some stores have been around for 20 years, 30 years in the market. And sometimes, they do not have the necessary funding to go on. So all that model is revolving around that right now. And so down the road, within the opportunities we have, when you have 35,000 employees, when you look at Ramon, 50,000 Truckpad, another significant amount of companies that oftentimes do not even have businesses with us. So Truckpad is also bringing along small and midsized companies portfolio. So that's where the opportunity lies. Also important when I said -- as I said before, we are also looking outside some of the operations we are already doing are not coming from the group. So that's also important for us. Maybe Fernando would like to complement.

I think that shows the responsibility we have when we are starting an activity we do not know very well. So thank you, Caffarelli, to come to join us and lead the bank because that's not something we have expertise on. So money we'll have, that's what I like to say because Caffarelli is here with us. So we have the fish bowl to fish, right? And he'll be able also to fish outside of our fish bowl. So he does have the expertise, even the group, to check whether or not a company is in good health. We'll be doing what we do every day, funding cars and trucks. We might have a residual level at the end of the day, and that's our business. And we have gotten that right repeatedly. That's what I call complementary business. And that's why we have consistency and not becoming a cost center, a bank, which we'll have the results through their competence and business generation without removing resources from other companies. That's it. Well, everyone -- anything else, Caffarelli?

No, thank you.

Well, everyone, many questions were sent. The questions sent online will be answered via e-mail. If you're here, you are invited to stay and talk with the executives in person. Thank you all for your presence. I'd like to invite Fernando to join me here on stage. And thank you for the others. And I'd like to take the opportunity. We're going to come to a close. So please wait in your seat. And if you want to use our hash tag, #simparday2021, please use that on your social media outlet so that we'll know you are following up on us. If you want to review or revisit this event, there is a replay facility at our IR website. The link will be available at our IR website. Just update the page. Fernando?

I'd like to invite to stage the President of Apimec, Lucy Sousa, who will deliver the seal to SIMPAR, a [indiscernible] seal to -- from those years. Nice to have you, Lucy.

Well, good afternoon, everyone. I'm not going to go too long. Apimec has the pleasure, the honor of delivering the seal to you, to your executives, the 12-year seal of uninterrupted meetings with market analysts via Apimec, one of the longest living entities in the market. We are now 52, 2,000 analysts, in addition to 5,035 analysts. Congratulations for the company, for your organic growth for your M&As and for the new projects that you have going forward. Congratulations.

Thank you, Lucy. Thank you very much. Thank you and also on behalf of our 36,000 employees.

And congratulations to you for the job, for the work that you do. Thank you.

Thank you, Lucy.

And we'll now wrap it up. Fernando will now wrap up the event after the official photo. This is the [indiscernible], Fernando.

So as she already said, I'm the one to wrap it up. So that's it. So once again, thank you. Stick around, we have lunch being served. I apologize for my tardiness, but I hope we were able to clarify any questions you may have. We remain available, our teams, to address questions. The event was recorded, remains available. Once again, thank you for your trust and for your time, for those of you here. And next year, we hope to offer lunch to all of you who are also connected. Very happy with the opportunity, and we continue available. And I'll review with our history told on video, okay? So enjoy. Be with God. See you next time. Bye-bye.