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

Welcome everyone, to SIMPAR Day 2023. It's a pleasure to host this event. I am Fabiana Panachoa, a journalist. I've been here before. It's a great pleasure. I thank you for coming on behalf of SIMPAR's executives and their companies. So thanks for being with us. I'd like to thank you that are here in person SIMPAR, announce you that are following us online with simultaneous broadcasting, and you can also take part of SIMPAR Day 2023. Thanks for attending. [Operator Instructions] SIMPAR Day 2023 is a huge opportunity for you to know more about SIMPAR, its companies and also understand a bit better how this group based on people, culture and managing is creating value, transforming its businesses and how it will continue to develop from now on. It's important to remind you that presentations that we are going to show today are going to make some simulations that are not guidance [indiscernible] company projection. The known objective is to help [indiscernible] and also the contents today may include some forward looking statements that refer to future results. And remember that it depends on market position, general economic condition, and other factors that may lead to different results. All that said, it's important to tell you that this event is starting. So we enjoy the opportunity those of you who are in person [indiscernible] or its subsidiaries. [Operator Instructions] We are going to put the agenda today, we are going to start with SIMPAR CEO and then the company [indiscernible] And then as the executives of each company finish [indiscernible] coming back to make a comment on the presentation. [Foreign Language]

But we work a lot to try and explain to you what we have been doing and where we are going to. So very briefly, I'm going to start a bit with our story. Focus on the last 3 days, what we have set to the market, what we have built and what we've all been saying without guidance, but what we believe will be our business, our companies in the next 2, 3 years' time. That's our objective for today. So to start the presentation. Here, we have a sentence saying people, culture management that creates value and transform our business. We believe our greatest asset is our people, our team. More than 47,000 employees is spread through out to different businesses and operations. Our acquisitions. We acquired companies, but not taxpayer numbers. We bring people to our group, and we believe this is the foundation of our business culture. We have a different culture. I'm not saying it is the most right or wrong, but it is what it is. It is what we believe in our principles. And we have a managed model that is very clear, value our people, paying attention to our customers, not only to serve customers, that's what they pay for. But it's more than that, anticipate their needs and by anticipating their needs we created all these businesses and creating value, we create value to our customers, our shareholders and ourselves, and we transform businesses. Quite simply, I believe that we are just starting. We have still a lot more to do. And how we do transform business. We started with the [indiscernible] company that became the largest logistics with the largest portfolio by anticipating customer needs. That's where the rent-a-car business, the truck rental business, all the other businesses started. That is transformation. We are the only logistic company that developed with the largest portfolio of services. And why is that? Some people think that we wake up and everything is that. We have been planning and executing for a long time. And with that, we transformed our business. Rent-a-car until [indiscernible], we didn't have rent-a-car service as we have today with diversity of cars. When you got a car from a car rental company, it seems that you were being scrutinized. Today, it's not like this. 50% of the Brazilian fleet had no air conditioning. So we have to put ourselves in the shoes of our customers, anticipating their needs. And that's how we transform businesses. In Brazil, we don't have operational listening. But if you demand, you [indiscernible] trucks, machinery or equipment. So that's it. Focus on customers and also on the longevity and perpetuation of our companies and relationships. Very briefly, here, my father founded the company in '56. He was a trucker and he sold closed. He worked a lot in providing services. He created a transportation company. I joined the company in '81, I was 14. [indiscernible] I took over the commercial department. I say I had no plans, but I had the instinct. I wanted to show to him and I knew at 21 that 75% of our revenues came from 3 customers, almost 2 [indiscernible] and then we started to rent cars in the end of the '80s. We started to rent trucks in the 90s. In the 90s, we started to diversify services, and what did we seek? Long-term relationships and to be the inside customers' facilities, no longer being a transportation from A to B. But I have to do the math to sell to customers, but also to my father so that he would buy in my page. We had 120 trucks at the time, 280 employees. So I have to patch to customers to my father, so that I could continue doing. So in the '90s, we had huge transformation. My father was building his successor. Now I know at the beginning of the 2000s, we started to see people in the industry. And because we provided such diversified services rental car, truck rental, people from the industry started to make a difference, bringing the view of the industry. And then we started to offer integrated services to be closer to the customer businesses to try and anticipate what the next business was going to be, and that's how we developed from 2000 to 2010. In 2010, we we've had still a company completely professional, but family-owned. And then as my father as part of his succession in the past, I thought it was time to go public. Again, to give our customers more comfort with the quality of ourselves. So we went public in 2010 and continue to develop and we had the opportunity to acquire [indiscernible] and from 2010 onwards we've always had plans with contracts working together with customers, never left to the real economy. Never got excited with anything that did not have solid [indiscernible]. We never raised money that was not linked to assets that were going to provide services. I'm sharing that with you because that's part of our plan. The continuity resilience of revenues, people in the front and doing business. This is not a company that just seeks growth. This is not a business that is some of the parts that we are going to sell, and we are going to leave. We want to do business that will give longevity to our companies. Some of you that know me for more than 10 years now that I've always looked into the eyes of shareholders, analysts, investors and that I want to relate to the market as we do relate to our customers. And sharing with you, we had a final movement from 2020 to 2023, and this cycle we are going to share with you. 2020 was the pandemic, but that really marked the lives of everyone. But it was very close to SIMPAR Day that we had 2021, where we shared some things that we wanted to do at next steps. And here are some of the numbers that you can see. That was the transformation from 2010 with the size of employees, assets revenue of 2.3 billion to 23 with an average annual growth of 23% a year. And getting to 2020 [indiscernible] direct employees, 10 billion, almost 11 billion revenues in '23, 47,000 employees, 34 billion of revenues, 8.2 million EBITDA and almost 290,000 assets. So this is the cycle of transformation. If you think of it, remember, we shared our intention note guidance of what we work to do in 2020, we restructured our companies at the beginning of 2010. We started to separate companies. JSL was still a holding and the company is starting to become independent. These were companies that were born inside the company. They had business [indiscernible] in the rental of trucks, cars with drivers without drivers. But we felt the need to restructure and not only because of restructuring per se, people wanted to know each business in separate. We wanted to have our succession. And we don't want to lose agility regardless of size, of people from the outside, oh, not restructuring, what for? Is it to raise money? No. More than that, it's a succession. The planning and development of each business, and the people that had to be closer to customers. So the reason for the restructuring, SIMPAR, the independent companies, JSL, then the IPO of [indiscernible] then the follow-ons that all the acquisitions in the last 3 years is strategic complementary acquisitions you're going to see during the presentation that really transformed after they required. If you see the price paid and the investments, we don't invest in what we buy. We invest in what we think we are going to have together with those we acquire. And that's just behind our acquisitions, and that contributes to our ecosystem, the capacity of our people, our greatest assets. And this is what we've done in the last 3 years. Now where are we going to? What's the next step? The foundations of each company are ready for them to continue to grow. You have teams, stores, people that are trained and qualified to continue the cycle of development, very much focused on extracting value of everything that was built to generate more businesses, operational excellence. Nobody is perfect. Life is made of options. From 2000 onwards, we knew we could consolidate dealerships. We knew there were logistic companies to acquire. But you know we don't want to lose track of our focus with our people and your support. We don't want to lose track. We have to establish priorities. So from 2010 onwards, first we did Movida. Then we went public. We separated our companies. So the priority now is to focus on operational excellence, efficiency, explore all results and extract value of everything that was created. Growth is possible, but it's a consequence of that. We are going inside a new cycle. And in the cycle, we show the transformation in the number of employees and the number of assets that are highly liquid, revenue, stores. it seems simple, but see from 300 stores to 500-plus. In 2018, probably we had 200. For that, you need to train people. Those that clean restrooms, regional directors, regional managers, all that was created from 2020 onwards. Without the macroeconomic scenario that you know, interest rates going up, stagnation in 2020, COVID, high interest rates. You name it, inflation, but we are here working hard, not listening much to what people say, but focus on our customers to develop with customers, people more and more services, developing, everybody, people that our business is to acquire companies. Now we have been transforming organically, working hard together with our customers. This is what we believe in. And now going into fads. People say, e-commerce, the last mile, even inside the companies. E-commerce is good. It's okay. It's a service that will continue to exist. But you have other options. We are also in e-commerce. How do you supply to the industry? How do you take products to consumers? We are in the last mile, but I cannot do it all. Otherwise, we are going to get lost. So we have focus. We listen to people, but we have choices. And our choices led to this result. We have a strong base of [indiscernible] operating assets, and we always have much to do and to improve [indiscernible]. So this is a bit of what we have done. Next steps. I already said that, but it's a strategic plan, focus on efficiency, trying to capture the maximum value, continuously improving results and having possible growth as a consequence. We want to grow that we have to have priorities and consequence. But the scale is a given now. And each company has its own owners that are making the operation happen at different kinds. [indiscernible] has continued development, and it is trying to develop even more. CS Brazil, is a smaller business, public services, passenger transportation, we have been divesting. There are other businesses that generate more value, concession in the long term. So we have a great time to extract value and when we're building, you can't have operational efficiency. And now it is the time for us to enjoy that, focus on our customers that bring us revenues. And there, we are going to create more value.

Yes, we still have a lot of information a lot of opportunities to consolidate this segment organically or through acquisitions. We'll keep on doing that. And there are 2 assets we're just starting. CS Infra has a lot of assets, and there's the BBC, which is a very supplementary service or banking service to our businesses. So these are the 3 companies and how they stand with revenue resilience and making a difference indeed for our businesses. Looking ahead, '24 onwards, we look at efficiency and operational excellence, generating results and growth will ensue. Well, let me just share the status in our previous SIMPAR Day. Once again, we're sharing what we think this is not guidance, don't value our assets based on what you're saying. It's up to you to come up with our valuation. We're just sharing what we have been doing. Here are the listed companies. For the next 4 years, that's the direction we're going. This time frame has expired by 50%. So we came up with these numbers back in 2021. Gross revenue is 88% of what we set out to do. Movida, not only the fleet but the revenue results EBITDA, it's at 82% of the fleet. You'll see how much revenue we generated at 82%. And then Vamos, that is already at 60% despite the scenario in the truck industry, only 50% of the time. What about the unlisted companies I had original a group of dealers with [indiscernible] million revenue. And we shared -- we believed we would be on the top car dealers groups in the years to come. And today, we are ranked among the top 3 car dealers in the country, 27 brands, 108 stores, the bank now. Let's develop that within that ecosystem and we are just beginning. CS SIMPAR has a great quality of its portfolio. We're not doing CapEx to hurt other businesses. When I talk about development, all of our companies, no exception has -- or have their own capital structure without resorting to follow on, we don't have need for capital. We're not making decisions and then looking out for credit out there. We're just going to do that if we believe it can generate more value, not as a need, there's no need for that per se. When we look at CS SIMPAR, we're not going to use capital that would jeopardize other businesses. We have been surgical in small businesses or midsized businesses that can generate a lot of value. Let me just remind you of our structure. These are the 7 companies under SIMPAR. SIMPAR is a small holding company, but not only for investment purposes, we're not operating within the companies, but we were hand in hand to make sure the planning, scheme is being implemented according to the Board. We are next to the HR departments to make sure the people are aligned with our values and culture, and we spend a lot of time managing the people portion of the business. People come to us to understand what the strategic decisions are, M&A we look at these opportunities from the SIMPAR point of view. We have a compliance communications and sustainability departments and the legal department as well. We also have these departments independently in each 1 of these companies. We monitor them to make sure the strategy is being implemented and you have the chance to hear from each 1 of these businesses, [ CSI, Automobi ] and the Board or 2 independent board members in each 1 of these Board of Directors. There are committees in those companies that are not listed, our governance is very agile. We value our culture and we monitor our businesses very closely. I believe that having governance, but being simple, people with the ownership mindset -- Being simple, that's 1 of the differences we can make to generate more profit and more value to our businesses. There are no politics involved. You have nimbleness, you have governance and you have development, and you can rest assure that the teams will deliver. Well, this is what I wanted to share with you. We're starting a new cycle, now focused on efficiency, operational excellence and generating results for our businesses. I'll turn it over back to Fabiana and you have the chance to hear a lot more from each 1 of those businesses. Of course, we have to hire people that are better than ourselves. That's 1 of the lessons I've learned in my professional career, so they can contribute more -- can do more than what we did before.

Let's continue with our agenda. Thank you, Fernando, for your opening remarks. Okay. Let's start with the business presentations. Let's start with JSL and then Fernando will be making a brief comment after JS presentation [ Ramon Alcaraz ], [ JSL ] CEO; and [indiscernible] CFO of JSL.

Good morning, folks. It's great to be here. Thank you for being here too. Myself and [indiscernible] will be talking about JSL, and I would like to invite you for the JSL Day on the 28th. We can discuss JSL businesses in further detail. All right, right off the bat, let me just say that JSL is a leader, but there's something important behind it. Being first is 1 thing and keep yourself there, maintain your position is something else. We've been leader for 22 years. I've been in this industry for 40 years. I started out in the largest company back then, unlike Fernando, I don't come from a family of carriers. I studied engineering. I parachuted down in this industry and that company no longer exists. The top 10 companies, 30 years back, they no longer exist. So being or surviving in such a fragmented market for 22 years as the number 1 company, that's no easy feat. But with that excellence and quality in everything we do. We don't manufacture nothing. We manufacture services. Services are provided by people. Our customers are not concerned and don't worry about it whether we are #1 or not. Just yesterday, I had a call with 1 of our clients that has 5 buses. They don't care whether we have 1,000 buses or 2,000 buses, they want to be serviced in those 5 buses and they want to make sure that whatever -- if 1 of those 5 buses breaks down, they want to know that there's a company behind that to replace that bus because their problem is that employees don't get to the plan. When you walk into a McDonald's restaurant, worried about whether they're #1 or #2. You want to have a good, hot meal, and that's it. But if you travel to a foreign country, you walk into a McDonald's restaurant, you can rest assure. You'd be eating a known product with good quality inputs. That's what we do. We have to be big as a company as a structure, but we have to think about the customer. Customers would like to be treated as if they were the only one. And this is something very important that we do differently unlike other companies in this industry is the diversification. We diversified in services. We are throughout the logistics chain, end-to-end as we put it. Raw material, mining, pulp and paper, primary industry and then secondary industry and then transfer storage, internal movements, logistics all the way to the end consumer. We're not in the last miles Fernando put it, but we are in the middle mile with FCJ. We're supplying that entire supply chain, so to speak. But we are in many different industries over 16 industries in total. As I said, pulp and paper, mining, beverages, food industry, automotive industry, chemicals, gas. So that gives us resilience. It's a natural hedging, so to speak, in search an unstable economy in the past 3 years, not only in Brazil, but throughout the world. But at the same time, generating value, creating value to our customers, to our own employees generating sustainable results that can move us ahead. Let me now talk about numbers in Q3 in the last 12 months. We are at 8.3 billion company of gross revenue. EBITDA was 1.4 billion. We are present in 8 different countries. One of them with not neighboring country, which is South Africa. We acquired 8 different companies in the past 3 years, including this last quarter, we celebrated our third anniversary since the IPO. This is some sort of a rendering of accounts. Over 30,000 employees, we are the largest company in the group in terms of employees. 2,300 assets, 1.4 million cubic meters and over 50 regional offices. And this is some sort of rendering of accounts, as I said, since the IPO. You, back then, believed in what we said, and this is again, we're rendering accounts. Revenue grew by 153%. And an additional 5 billion in revenue, but which is even better, results were even better, 210% growth in EBITDA, similar in terms of profit, despite all the fluctuations of interest rates we've had, and we doubled our ROIC, from 7.3 to 15.7. This can only be made possible through our scale and the expertise we've acquired in the over 65-year period. Note put it, and I'm going to reinforce that this is our #1 asset, people. We're not a plant. We do not manufacture anything. We produce services, and we depend on people. What makes us stand out, not the 23,000 assets. It's not our trucks, machines or brands. How the machines can purchase that too, maybe not this amount, but they can purchase so they can render services. What makes us stand out is the quality of our people. It's not only a matter of having good professionals in our team, is to have a team that is aligned with the common goal. Just yesterday, if you watch the game, last night on television, Brazil and Argentina. You have -- there's no point in having 11 great players. I think we had our best 11 players, maybe better individually, but the difference is in the harmony, in the purpose of the common goal. That's what makes a team win. People speaking the same language and looking at the same goal. Investment capacity that made a huge difference in recent years, especially with higher interest rates, difficulty to get some credit lines. That makes a difference in businesses that require CapEx. Another huge difference that separated the man from the boys as they say. And I'm referring to the capacity to have adjusted contracts I've been in this business for almost 4 decades when I started out back in the '80s and '90s. We had 2-digit inflation rates. And we lost track of that. Many of you haven't experienced that 2-digit inflation rates a month. Just last year, diesel prices going up by 25% vehicles doubling in price, and we had to go back to customers and renegotiate contracts 3, 4 times a year. We had to be nimble. Diesel prices went up by 25%, but we are used to it, not last year. Many companies didn't do their homework and were not nimble enough and they've witnessed their margins dwindled. And let me now talk about the managerial model for these new acquired companies. That's what usually -- that's what actually makes a difference. Despite SIMPAR manages these acquisitions, this is a shared model. Many people ask us whether we are purchasing new companies, how many companies are there on your radar, how many companies are acquiring next year and so on. Of course, we are considering acquisitions, but not at any price or at any cost. We do believe there are some acquisition fundamentals. And I mean, companies that operate in supplementary industries be it because we're not that strong in those industries or in other industries, we're not present. Culture or cultural alignment, that's the #1. Dogs do not hang around with foxes. So we need companies that have an aligned culture or a culture that can be easily aligned. Companies where management is experienced and have that high-performance culture because in deep down, what Fernando said, is we're not purchasing the company up today. We're purchasing the company, it will become tomorrow, with our investment capacity. So growth potential that's key. And there's another very important point. Since we want companies that keep on performing with the teams that are there. It's very important to keep the managerial team of that company of that business. We're not purchasing assets. We wouldn't need a company to purchase assets we're acquiring know-how and we depend on people for that. And what added value can we contribute, access to capital assets that will help them grow commercial advantages so that they can be in industries that were not before, growth capacity given the JSL size and the cross-selling potential. Customers or their customers can become JSL customers and vice versa. Okay. What's the result of all that? Let's take the last year? 22% revenue increase when you take Q2 of '22 and Q2 of '23, 33% EBITDA increase. I'm sorry. I'm sorry. Q3 -- or Q2 of '22 and Q3 of '23, 22% and which is even better, 33% EBITDA increase, growing for growing for sake, that's not important. We have to grow with sustainability. And that's exactly what I referred when I talked about industry alignment. When we take the 8 acquisitions and the other 7 and 1 of them was a digital company, these are the industries on your left, 60% connected food, beverages and consumer goods. These are industries that are way more resilient, less sensitive to crises we've seen in the economy because these are high turnover products, agribusiness, chemicals, gas, and when you take the 4 industries, we usually break down logistics, cargo, storage, urban distribution and dedicated operations we've grown in all industries, 50% in cargo because it has more volumes. We've increased our market share in storage by 18%, 20% and dedicated operation 14% in urban distribution.

Let me just make 2 comments about this slide.

Go ahead.

When we compare the number of these acquired companies, we're not including FCJ and ASS transportation. These were acquisitions in 2023. These are just for 6 companies. Every time we acquire a company, we can extract about 2% margin due to consolidation year-on-year, you can see the margin growth from 20.8% to 23.1% in these acquired companies alone. When we acquire a company, there's still EC transportation that have just joined our portfolio in '23 and FCJ. We can extract value from these 2 new acquisitions in 2023 as well.

This is proof of what we've been saying the blue lines or the blue curve shows growth companies or what would be the growth based on the last 12 months' growth but for the acquisition. If they were to keep the same growth rate their revenue would be the blue curve and the red curve is what actually they grew after the acquisition, TPC, for example. It was on the rise. Absolutely, but it was below 10%. That was an 11 percentage point increase 18% [indiscernible] come from. Again, that rate changed by 8 percentage points [indiscernible] it doubled its size in 2 years and Marvel the same thing, a very substantial growth. Since I've come from an acquired company, I know that my experience, what changes the before and after, the courage -- it's a smaller company, you have to be wise. Let's say, if I were alone at [indiscernible], I wouldn't have gone to South Africa because that would be a much bigger risk. It's not because I want it. I have to be wise. But now with JSL this risk has changed a lot. You hit -- you put your pedal to the metal. The potential was there, but we are just being more cautious. And just to add in terms of growth [indiscernible] is what is the weight of the CapEx acquisition in our balance sheet. So we made an exercise looking at 2023 to answer the question. When you see the reported net debt at JSL, you're talking about 4.5 billion. If we discount the CapEx effect and the effect of the net debt of acquisitions. So I'm talking about payment of acquisitions and also the net debt that we consolidate in period, we are going from 4.5 billion to 3.1 billion. So our net debt would be [indiscernible]. Now EBITDA. We've removed all our cost centers that is projects related to the CapEx that was made. Remember, we always have an implementation period and between the date of acquisition, CapEx until the full generation of value of the assets in our balance sheet. So we have [indiscernible], which is the consolidation of the 294, then we have the leverage from 3.1 to 2.5, [indiscernible] This is just a settlement of accounts and amount that I always mention when we interact, which is the company's capacity to generate cash. How do we create [indiscernible] in the business? We see the movement of net debt. And I'm just looking at the Third Quarter 2023 and I go 12 months [indiscernible] I go from 3.1 billion to 4.5 billion. CapEx rose 1.6 billion in 12 months. We paid the acquisitions, 107 billion, and we have a financial result in pocket of 837 million. So we generate in the period, 1.3 billion in cash. So that's my capacity to grow without pressuring leverage. Can I go to the next slide. That is another piece of information. Here, we are talking about the EBIT of the company and the percentage of the [indiscernible] interest curve. So we, as mentioned, reprice contracts, cost of capital, efficiency of scale, EBIT [indiscernible] here to a much more suitable level to the company's cost of capital. Now, we've had a stable leverage of 3x in 2020, 3.1, 3.09 excluding the effect of the acquisition. So a stable leverage and what we see now? We see an inflection of the interest rate curve in a much larger operational base. So we are entering a new cycle of conversion of operating results and net profit. So my pricing base has been updated. Contracts have been repriced whenever possible. And we are reducing interest rates and spreads. We had 2 upgrades in credit rating of the company by Fitch and S&P, and that's helped us in the most issue of debt [indiscernible] with less 150 base points. So that is going to help us. The work in the operational results to our net operating results. Well, to close out 15 minutes is so little, but anyway. Yes, 1 second. It's a settlement of accounts. We talked about 8.4 billion in the Third Quarter. In the last 12 months, if we had IC transport in FSJ in the last 12 months, with their own revenues, not even considering their growth, we would be at 9.6 billion. That is we are already a company of 10 billion, very close to the guidance of 2021, 2 years before. And if we make just simple projections, this is not guidance, just simple math. It's control C, control V. You get the same organic growth that we've had in the last 3 years, and project that for the next 3 years, we will be a company of 16 billion in 2026. If we get the same average of acquisitions in the last 3 years, and project that for the next 3, we would be accompanied by 2026 of 21 billion. This is not guidance. It's not a promise. But if we did what we did in the last 3 years, for the next 3 years, that are the numbers. And again, based on 3 pillars that I truly believe in. And as a preacher or a priest, I say that whenever I have with our people, customers. They are the reason for us to be. And if we don't have excellence, we cannot keep customers. We don't grow. Our business is made of people, as I mentioned before, engaged people that have the same purpose. This is what to make us all do something different, subsidy results. This is what support us and help us move on right. Thank you very much. And I'm sorry, I passed a bit of our time.

Thank you, [indiscernible] at JSL.

I have 2 or 3 comments just to complement what you said. One, the quality of the company's suppliers. This is phenomenal, lots of [indiscernible], having the companies independent with their own missions and objectives. This is for models we have been very accurate. But static synergies of costs, and I'm reducing the opportunity to tell you that efforts you're showing, our margins are made of our capacity, scale and cost. Price is the competition that sets. Sometimes people do less match. So it has to do with cost and management. And this is very important for us to see. Second thing, [indiscernible] talked about IC, a huge company, quality, operational efficiency, works with hazardous products. It is fantastic, which is a company that needed to have price rates [indiscernible] with their customers. And this is something that we are going to do. But we don't buy companies that need transformation. As a service company before they need transformation, they have a problem with revenues. And if customers see that you are hurt, you leave and the bad ones stay. So we are very careful and we do that quite surgically. And in a nutshell, the transformation in truck prices in recent years, they need for CapEx and the generation of revenue on top of that is very strong, and this is part of our DNA as a whole. So people think. So your business is struck. Now we have a huge part of that is asset like. We have a lot of JSL in JSL [indiscernible]. There is [indiscernible] some equipment, and it is JSL that provides the packaging of the equipment. So JSL has to charge right to keep with the customers. And our margin is based on our capacity to execute. So thank you for the wonderful job you have been doing.

[indiscernible] contributing to JSL's presentation. Now we are going to invite [indiscernible] and John Bosco from [indiscernible], welcome.

Thank you. Good morning, everyone. Thanks for attending. If you don't know me, I am [indiscernible] CEO; and [indiscernible] who is the CEO of [indiscernible] that is an important part of [indiscernible] and we have some slides to share with you to talk about [indiscernible] operation. I'm going to start my presentation with an important statement, which I think is a pillar for the creation of value in our business model. Our business model has several things. One that is very important, which is the company's scale [indiscernible] to have commercial conditions from OEMs and coverage to provide services to its customers. So scale is 1 of the key points to create value in the business model in which we are created. As this slide shows what we've built in the last 3 years that allowed the company to reach an important scale in all perspectives. First, we show the company fleet that more than doubled in the period now with 214,000 cars but not only fleet, revenue and threefold increase and infrastructure today have 253 rent-a-car stores throughout Brazil, like to used vehicle stores at this structure, together with the team that was built and qualified a huge management effort enables the company to be supported for the new cycle of development and value creation in the next 2 years' time. This is an important achievement because it will support company performance from now on. Moving on with the presentation. I think this is a very technical side, but I think it's very valuable to try to show you clearly all the actions and initiatives that we are implementing in our business model and how they contribute for the marginal creation of value from now on. So here is a chart that shows the return on invested capital of the cost we bought and they're not so favorable bank terms, not in the ITO mix and other economic factors that you know. So these are the cars we bought way back when -- and that we still have about 30,000 in our feet. [indiscernible] we brought the contribution with each initiative of the company. Things that have already been implemented and others that are ongoing. But first, as I mentioned, is a dramatic change always going to before, and then make terms with, oh, yes, in terms of prices and terms. So the commercial terms that we have today with the cost that we have been buying as of the Third Quarter, almost 16,000 cars, contribute with an extra 4 percentage points of ROIC seeking up the card we had in our fleet until the end of last year. And then we had other operating initiatives that transform the way we operate the business. If you take a look at the breakdown of the rent a car, return on invested capital, we know that asset turnover is the main driver of value creation. And areas are very much focused on extracting the best productivity in each stage of the asset cycle. This 1.8 percentage points shows that we increased the occupancy rates from 77% to 82% and the yield dropped 3.3% to 3.8%. [indiscernible] speaking, a car that is not operating has an invisible cost, not only funding, but you have to have larger infrastructure, you have to service the car. So we have to have the most productivity possible to have the car operating the most time at the right price. And we've done that. You saw that in the results of the third quarter, that was the delivery. And until yesterday, productivity is even better than this. behalf the initiative that was implemented that you already saw in the third quarter that contributes with 1.7 percentage points in the return on invested capital to the life of the assets in the company and thinking of extracting the best productivity of each stage, we listed 3 major KPIs that really change asset turnover. When we took a look at the return on invested capital, the cost we had, we saw the 3 indicators, the major factors. First, the start of the cycle between buying the car and having it available for rent. It would take from 30 to 35 days in the past, almost 1 month in a cycle of 18 months with a car that is not generating revenues and is still paying interest. So we reduced that to 16 days. And in the end of the cycle, when you remove, you retire the asset and then you sell the assets, it took 21 days. Now we are taking 12 days. And to the psyche of the current store, 8% of the costs were not available for rental because they were under service watching or any other activity other than being rented. So we reduced that to [indiscernible] and that let us have a gain of 1.7 percentage points. So this is where we are today with all initiatives implemented. What is ongoing now? First, we have clear that changing the fleet mix as we are doing. So we have a ticket of 85,000, and we are now at 81,000 in the third quarter. We want to get to 779 in the end of the year with the same daily rate. This is a gain of profitability per car that together with the pricing tool that we are developing together with McKinsey to be implemented still this year as some improvement in commercial conditions will contribute with an extra 0.9 percentage points. So that is going from a top 3.8 to 4 contributing with almost 100 basis points in the return manifested capital, marginal profitability. And now we are focused on managing costs and expenses. We worked on the top line, the main cost of P&L, which is depreciation and commercial conditions. And now it is about extracting value by reducing costs, not only by decreasing meaningless fixed costs and expenses, but also by changing the fleet mix. Remember, the average ticket we bought was 90,000. And now we are going to 77,000. That reduces maintenance costs significant, which are important costs for the company after depreciation, perhaps the second most important. And that will lead us to a marginal ROIC of 12.5% to 13.5%, with a spread from 3 to 4. And for this segment, I think it is very appealing to any shareholder. In addition to the [indiscernible], we have a segment inside the company that has a very important allocation of capital, which is fleet management and outsourcing long-term contracts. And why do you have the most allocation of capital? Because it is a more mature business operating speaking, we've proven stable profitability. You saw the EBITDA margin that was 74% in the third quarter. And it's a benchmark in the market, but we think the business still has scalability, and we can extract even further margins. And here, you can say update of the growth of the business and what we expect towards 2025. We improved profitability even with growth [indiscernible] 2.6 to 2.8. The share in fixed assets went from 52 to 56. And we want to get between 60% and 70%. We take you from 2.7 to 2.9, delivering a return on invested capital between 14% and 15%. So in addition to the natural profitability, it also brings predictability and resilience to our cash flow, which is important to retrofit the company's investment cycles without leveraging the company further. Here is the drill down of the GTF and the 120,000 cars we have today to the 160,000 we expect in 2025. [indiscernible] management general sourcing, we have 3 businesses. The first B2B that's rental to companies. We also had special vehicles rentals. CS [indiscernible] going to talk about that. And we still have an [indiscernible] business, which is the subscription cost, which is undoubtedly something that really gets us very excited in terms of potential growth, but that we are still structural to advance to a new cycle of development. That is wider has the growth of this business is perhaps more conservative than what I believe, but we are just starting the lines for this business to grow. So I'm going to turn to Joao, just going to talk about perhaps the main business we have in fleet management outsourcing. And then I'll talk about Movida's consolidated numbers.

Good morning. It's a pleasure to talk to you about CS products. So as Gustavo mentioned, CS is focused on the rental specialty, customized cars with a complete dedicated service structure, specialized services, and we work with public and with private owned companies. We are everywhere in Brazil. We have 11 [indiscernible] shops, 497 employees that certainly make the difference in our business and a commercial alliance with approximately 4,600 specialized suppliers. We always say in CS that within the environment we work, we have the best governance practices for you to have an idea until September, the close of the quarter, we took part in 200 electronic bids almost 6 a week of average. So a very intense activity at the highest level of governance. And we have the recognition of the United Nations and also ISO 31. So you see in the last 12 months in the close of the quarter, we had BRL 978 million in gross revenue from services, annualized BRL 1.1 billion and the highlight here is our contracts, as Prasad mentioned, long-term contracts on average, 35 month loan. When you get to the limit of 6 months, we would have a backlog of BRL 5 billion with an average time of 47.4 months. And here is a bit of what we built in terms of value creation in the last 3 years when we don't have the third quarter '20 to the third quarter 203, gross revenue grew by 307%, gross revenue from services 235%. So very strong growth since 2021 in full synergy with Movida. And here, I also highlight the fleets that we get through the bids we take out and partly in terms of balance. We are part of public bids, there is some menage and the customer can sign the contract within 12 months. And in our history, 66% is actually contract sum. So we closed the third quarter with 15,920 with this optionality for the next 12 months. And then we have the last item, which is also expected to be more. And these are states that can be part of the minutes of other states that if they don't have to go through the bid, we call that the rent. So we have the option also to protect services to this step. We analyze the project, and it to anew, but we don't have to have their needs for you to have the right as we call it in Brazil, you have to first have the minute. And this future exercise again it's not guidance, but this is what we believe in for the future. We have mapped the market, everything that we have in the hands of government, public companies, state-owned companies public private companies. Our targets are these companies up to 100,000 companies and you have this number of cars that have not been outsourced yet. So it is a very underpenetrated market. So the CS fleets of 45,000 cars. And here on the side, we talk a bit to why we believe the 55,000 cars that we start to show. So the third quarter, 45,000, we already have other deployment, 3,500 when I talked about the 66%, 65% on average of minutes that are converted into contracts. We would have another 10,000 cars and in the cycle of '24 to '25, we have 12,000 cars in the last 12 months we improve 8,000 cars deployed more than 12,000 per year, so we consider a volume that is extremely doable. And then we have a projection for maturity, losses, which is also natural in the business. So that will lead us to 55,000 cars. It looks easy, but it's not. Here the presentation is easy, but in real life, it's not. And here the highlights of what we believe and what our values are. Today, we have the foundations ready for the dilution of costs to have really differentiated services in terms of reach and synergy, consolidated structure. We've restructured the used vehicles departments in the third quarter. We are selling the vehicles of 2, 3 years old. And in the state owned service, we believe that what has the most value is that the minutes that are to last 12 months are expected to last for 24 months and you would have the option to be higher than not only 12, but also to 20 products. Remember that our contracts would be 36 months and now the limits could be from 5 to 10 years time. So here, we can have a change and improvement in the business as a whole. That's it. Gustavo.

Finally, let me show you the status of our planning exercise and what the next steps are. We've been talking about the construction of the company since it was acquired, the scale, everything I talked about in my presentation. We're now focused on operational excellence to extract as much productivity from our assets, process improvement, controls, focusing on asset management throughout the different cycles. We talked about in our last earnings call, liability management to reduce our leverage, to help us in the spread ROIC AD. This is what we've been doing throughout the year. From that point on, we start generating value, creating value to shareholders. So the focus onwards is to generate EVA. So we need that ROIC spread between 4% to 5%, given the profitability of the 2 businesses will help us and what makes us feel very excited about it is that there are no attributes in that improvement. That is something very different from what we've seen. There are no high groups in there, going back to basics, purchasing the right cars operating with operational excellence and selling them with the expected margins and then we'll be able to reach those expected margins. And there's also that 10% to 15% fleet growth. And why is that? Because with that growth with ROC, we can generate a lot of value, a lot of EVA. And that is based on a balance sheet with that 3x leverage. So our balance sheet is very healthy. We have access to credit lines because our balance sheet is healthy, and it will feed back in that cash generation cycle. That's a new phase given that security that the operation gives us so we can generate that marginal value. We'll be able to see that in Q3 and Q4. That concludes my presentation. Thank you.

I'm going to get in the way anyway. Let me just make a couple of comments about the Movida business as from 2020, we had 120,000 cars. That's part of our strategic planning exercise some 3 years. It's not a matter of mistakes that cars were very expensive. That was our case back in 2020. There were no cheaper cars. We had no entry-level cars. Our decision was to make an investment on what we had at that time and then have cars to offer to customers. We had 120,000 CS fleets, at about 28,000, 27,000 if I'm not mistaken. At Simpar, we delegated our shareholders or minor shareholders to decide on that the merger with Movida, you approved it unanimously. We were part of that assembly. You had 148,000 cars. Today, we are at 215,000. That was only possible because we had to purchase, what had to be purchased. We had 1.2 million new companies that rented Movida cars in the past 18 months. If we hadn't purchased, we would have to say no to our customers. And they were -- of course, we're depending on government approval to merge. That was part of our strategy with the new management team, that transformation. Now we have to improve results, to have operational excellence. We're concluding the mix with more expensive cars. Now we had an entry-level mix. 30-odd percent, and we keep close track of that. That was the group's #1 and 2, and it would give upgrade because we didn't have those cars. We acquired them. We conquer these customers. Revenue did not reduces. CapEx goes down. Now we're purchasing the mix we want and we need. The upgrade is about 15%, 8%, 10% would be normal. And we are adjusting the fleet, just like Moscatelli, showed you. Let me just make a comment. The fleet mix can bring maintenance costs down. In 12 to 14 months, you'll contribute and when you sell used cars, you can have better prices. So the changing or the change in that mix will bring in benefits later down the road, and we are purchasing the mix we want, commercial conditions changed. We're back to pre-pandemic conditions. And what about scale? What is the purchasing price because the other one is very big. The bigger the ship, bigger the storm without due respect, right? Still when you purchase, there are no differences today. Car manufacturers need to sell. And they're not wanting to -- they're not willing to sell to just one, maybe #2, #3, and the sunshine for everyone. Car manufacturers need that settle. We've been able to purchase cars. Our scale is fundamental. It's great to reduce costs. You've been doing great work. We're very pleased with the results when Jerome talks about GTS. At CS fleets or [ Fortis ], we are prepared for special cars, government-owned because there are so many mixed economy companies, and we have top infrastructure that is second to none. And even when you increase RAC with all the adjustments, we'll be able to reach that 70% level. The government companies, private companies, if they make the right calculation, they will rent, they won't buy cars. Just in conclusion, you have to stop open new stores. We have to keep on improving processes all the time. There's no need to hire, to train people. It's only natural to recycle your staff, but not from scratch. Thank you once again. I think it's important to share the way we see that transformation at Simpar. Thank you. Thank you so much.

Thank you, Moscatelli [indiscernible]. Moving on, Vamos CEO, Gustavo Couto and the Dealer's Director, Christian [ Reinl ]. Welcome, guys.

Thank you [indiscernible]. It's great to be back here at Simpar Day. I'll be sharing the stage with Christian, he's been with us for 6 years, taking good care of our dealership network. And now -- we're now has taken over our agriculture dealership. But let me quickly remind you of the fundamentals of Vamos. We have the foundation to keep on growing. We have not only been delivering sustainable growth. Net revenue was fourfold when compared to 2020. The same thing happens to EBITDA, a 4x increase. And net profits, despite higher interest rates almost at the same rate, not only showing that we've been able to grow the company, delivering profitability. And at the same time, we have built the foundations so that we can keep on growing consistently. If you have been keeping track of our company since the beginning, when we talked about developing a digital platform that would be able to leverage growth by providing good internal control so that we could provide good management, not needing to increase fixed costs. Now we have an asset base. Market value is worth BRL 16 billion. We've invested a lot less than that. These assets were purchased at the right time in the right way, market value, they are at BRL 16 billion. We can almost pay our net debt almost twice if we ever needed that just by using our asset value, they're very -- they have a lot of liquidity that can be showed through a used car network. That's the largest network. We sell 100% of our fleet. It's ready for the company's growth in the following years. It's not only a network of used car stores, but it's integrated one. We can purchase, sell, rent. We can sell new and used cars. We had an incredible top network. They did not exist overnight. It was a natural growth and a gradual growth of that network. We have over 3,600 employees. We had less than 1,000 back in 2020. This is an internal team with a very low turnover. We can serve our customers very well, therefore. In the past 3 years, actually, our NPS is the goal of our -- of all of our executives. We're almost reaching that excellent level. 72, which is the maximum rank in NPS. This is high performance goals for all the teams. Again, the ecosystem is there. We have the rental business, leading brands, the largest and best used network of shops we can customize, provide customized services with independents, we have partners in these companies that are very supplementary in nature with a lot of commercial synergies out there. So my #1 message, the foundation is there. The fundamentals are there. They're solid. They will help us keep on growing in the next years to come. Over to you, Christian.

Let me talk about the dealership now. We've implemented a major transformation in their structure and in the product diversification. We have a wider coverage. We operate independently so that we can have speed so that we can run the day-to-day business. We operate, we work with brands that are very important, and we're very proud to represent them in these different regions. Back in 2019, we had only 2 brands, Transzu, Volkswagen's with Transzu and Valtra, the tractor brand. And in recent years, the transformation can be seen in the number of stores and the different brands or the number 5 brands now, 77 stores. We have Volkswagen trucks. In Sao Paulo we have [indiscernible], we have a wider coverage. Valtra tractors, again, and I think another important niche in agribusiness, Comex, in yellow line, loaders and excavators and Toyota with the forklift and the 15 stores of almost used cars to sell used cars. Our positioning is strategic for the business. We operate in areas that have a lot of potential, and we are developing industries that are supplementary. They can purchase a tractor or an excavator or even a truck. We are in important areas, agribusiness, for example, Undoubtedly, we'll keep on expanding because we have tractors. We have combines and heads. So the Brazilian fleet, it's an old fleet. It needs a renewal. That's why we have the trucks and the entire country needs infrastructure investments, logistics and all of our products can help us in that direction. Back to numbers. Our revenue is over EUR 2.7 billion. This is what we have seen in the past 12 months. Our EBITDA margin from only [ 8.6% ] it gets to 13.2% last year, was a very important year for all the dealership. All of them had excellent results. Numbers came down a little bit this year, but those margins will build back to getting better because we focus on costs in years in which there are no volumes. We work on cost. We have bulk sales, parts and services, that gives us a lot of margins, and we operate. We work to maintain that loyalty numbers. We have 15 used car stores. They are identified as such, and we have over 25 of our dealers are prepared to serve customers that would like to purchase a tractor or a truck or a machine that are used that gives us some comfort. We know we are prepared in the area of dealers. Sales was 164, now 615. That preparation of those numbers or POS is from 17,000 products, tractors, combines, machines over 3,100, doubled the number of SKUs. So that's again the drivers of our results. Well, let me go back to rental. The message is consistency. During the pandemic years, we knew that trucks were appreciating. So we had that inventory. Our rented fleet was always 95%. It went down to 76.5%. That was part of our strategic planning. We had to have the inventory to start that year. We've been growing very substantially in the rented fleet. That's the red bar. It has been growing consistently. And when we provision the inventory for 2023, that was competitive. We had to appreciate we could deliver right away and good profitability from those contracts. These inventories are going back to normal levels, and this has been very healthy. Since 2019, we had a tenfold increase number of customers. That means more and more customers are experimenting the rental, and they sign a second contract. Our backlog reached almost BRL 17 billion. The implemented CapEx, the CapEx we give them when we sign a contract and start generating revenue back in 2022, almost BRL 5 billion. And in the last 12 months, we maintained the same pace. Capital goods, machines, trucks, equipment, they've been decreasing because of higher interest rates or problems in each specific industry. Last year, just like Christian [indiscernible], was a very positive year for the capital goods. This has been a very more -- a difficult year, but rental has been keeping track of the best year we've had so far. Rental EBITDA remains very strong, almost at 90%, as you can see. And used machines [indiscernible]. The network expanded a little. There was integration, operational excellence, dealers and used cars, we not only grew our revenue by increasing fixed costs very little, but we have been able to maintain good margins in the past 2 quarters. We had over 30% -- over 30% margin in the past 2 quarters, when we sell used equipment. We have discontinued that guidance of 100,000 assets. The value changed. We ran this exercise. We've had the average ticket and our trucks, machines and equipment appreciated. If we were to consider the invested capital for those 100,000 essence, that would be equivalent to 75,000. And in that sense, we would be at 60% in terms of the amount invested, which in the end is interesting. We are at 60% by September 2023. So we are on track based on what we had planned out, making that adjustment. When we take into account the appreciation of assets, especially in trucks and machines as you well know. Back to our capital structure, our balance sheet, we're now on the deleverage cycle. We had that peak in the middle of this year due to the purchase of Euro 5 products. So the route is now on the downturn. Our marginal debt cost is coming down. Interest rates will benefit that spread in ROIC will expand because interest rates will be coming down and our long-term contracts have formulas that will help us readjust contracts based on inflation rates. Once our Euro V inventory dose that we had purchased last year, as we have been saying, this has been going down gradually. So these in the quarter, it will be normalized. And there's something else that is very important. There's a huge opportunity to reduce our working capital. We had higher inventory rates in the rental business, in agribusiness, our working capital was unusual. That's not normal. And it's not usual, so we have over BRL 1 billion in opportunities. Accounts receivables, inventory, supplier lines, we're going to bring that with the cost management that will give us that concept of operational excellence, which is key to the future of the company. And finally, let me give you -- let me propose this exercise. If we were to take the past 21 months, we have been delivering 400 million, 500 million month after month. That's the implemented CapEx, as we call it. If we were to project based on what we've done in the first 9 months of this year, projecting the best year of Vamos history. That was also the best year for the capital goods industry. That's 2022. If we were to repeat that number in '24 and grow that by a little amount in 2025, we'll be able to almost double the EBITDA for rental in 2 years' time, almost doubling the company's EBITDA in 2 years. That means consistency, predictability. The foundation are there. We've already done. We've already done that for 2 years to do that in the next 2 with interest rates going down, many people postponed the renewal of their fleets, agribusiness infrastructure trucks, that fleet will have to be renewed. If you make a good calculation, you won't purchase, you will rent. You have the possibility to almost double just by doing what we've been doing in the past 2 years. We are very excited with that outlook. We had the foundations where the fundamentals are in place. And what's more important, we won't need more capital. We don't need equity operations. We can do that by the cash generation of our contracts and using the debt market. You can have their growth rate, leveraging the company at the same time. This is my final takeaway. We're talking about consistency in rental, efficient working capital management at the dealership, and we'll be able to deliver results and adding value to shareholders. Thank you. Once again, I will be back for the Q&A.

Very quickly, we are running out of time. Let me just make a couple of comments and [indiscernible]. All the dealership, what happened to dealers in agribusiness, I'll be honest. The dealership business is supplementary, but it's independent. It's a separate business. We are positioned with the dealers and the trucks in the best regions with an excellent brand. And you had that agri business network, which gives us a very advantageous opportunities in the Brazilian Midwest, to even have the opportunity to rent equipment. But the dealers won't be able to change the rental business, which is the great cash generation. On the other hand, it's independent. So the market was frozen. There was a major drop in trucks, but that was actually frozen machines. That's the -- that's a partnership is all about. When you receive that, you sell it, you adjust your inventory levels and dealers, you are asset light. You don't manufacture. You represent when you represent your purchase whatever you want. But it takes some time in some when you don't have results through revenue. You do that by cutting costs. That's what they've been doing. And it will be normalized in 3 to 4 months, you have in the right inventory level, and we start afresh. You can adjust your structure depending on market conditions. I had to share that with you. On the other hand, when we talk about asset value, you are all concerned about selling used trucks. We have people to buy it, but it's a very premium product. And why is there very few can afford a new truck, a 5-year truck. The average fleet age is 20. Those that have a 20-year-old truck, who purchase a 5-year old truck. So our assets have a lot of liquidity. And it's the same for [indiscernible]. You have an average contract maturity of 37 months, some cars it go up to 50 months. The plant will readjust prices based on the difference of the price you purchase, when you sell it, the price changed a lot, not only because of the pandemic, the inflation rates was the driver behind that transformation. So we are -- you have a company in which assets have a lot of liquidity. There's a lot of demand. We're the only supplier of these large volumes with these assets at 5 years of age. So the dealership is ready. They've already sold BRL 600 million and there's more demand to sell even more. Thank you. Thank you so much.

Thank you, Couto, Christian. Thank you, Fernando, for your comments. Before we start with automobile. Antonio Barreto, planning VP, he will be making an initial comment, and then we have CFOs, Automobi CFO, Antonio Cavalcanti. First, Barreto.

Good morning, folks. It's great to be back here. Let me talk about Automobi very quickly, and I'll be back to talk about other topics. So we're very pleased. How can I share the screen here. When we talk about that in imparts in 2021 and then last year. And I'll be talking about the team that runs the business, let me give you the current status. In late '21, we announced the acquisition. We had Automobi in the middle of 2022, BRL 500 million. That's what we allocated and [indiscernible]. We had 7 acquisitions since then. We are the more diversified group in terms of brands. We represent almost all car brands and some motorbike. When talking about revenue, we don't know. Many groups include trucks, agricultural machines, but in this group, these are just 4 passenger cars. We have some scale, one of the largest groups in the country. Let me talk about people. We had the management committee, Fernando, Julian and myself. We worked very closely with the managers and the companies are broken down by different presidents. After the Q&A, the 3 of them are here, [indiscernible], luxury brands told you premium brands and Ricardo, Honda and Toyota. Let me just explain that they run these businesses as if they were independent companies. That's very similar to what we've been doing with the JSL business. But of course, there's a consolidated corporate structure run by [indiscernible], CFO, who has been with us for almost a year. He'll be talking about the company in further detail. I'll be back in the end. And I'll be doing that for some of the companies, showing you what we did, what the acquisitions were, the current status and where we believe we'll be able to go in a short-term basis over to Cavalcanti now.

Good morning, everyone. It's a pleasure to meet you. I am Antonio Cavalcanti, and I'm going to go through how we are -- what we did in the last 18 months when we decided to invest and increase our stake in light vehicles and what we see from now forward. So I think it's a very interesting exercise to introduce Automob. As it was said [indiscernible] structure. We have the largest portfolio of brands, 25 years of history, our [indiscernible] in Sao Paulo, as we had mentioned. So we work with 27 brands in 108 stores, 5 states, 18 municipalities. Altogether, based on the last quarter '23, BRL 9.5 billion, almost 129,000 vehicle sold. That is our structure. And it's important to emphasize that our corporate structure is already sized for the current and future challenges. That is we are prepared to grow. And why do we focus on the portfolio of brands? And why is this so important to us? First is our breakdown based on sales, excluding direct sales to rent a car companies. So we have the share of each of our 27 brands, and that makes it easier for us in periods of transition and seasonality of some of the brands and also boost opportunities of each one of them. We are distributed as [indiscernible] with 59% of units sold and 41% of our revenue mix, 21 [indiscernible] control with Hond and Toyota with 22% of revenues, 15% in luxury and 34% of revenues [indiscernible] leadership and 6% and 3% led by [indiscernible]. It's important to say what we did when we decided to expand our share in the market. So starting with [indiscernible] pre-acquisition, we had at the time, BRL 900 million in revenues. In 18 months, we had a 12-fold growth with revenues reaching EUR 9.3 billion. That was meant through 7 strategic strategy, of which quality [indiscernible] points are still being fully integrated to Automob subject to pending issues, customary in the state of negotiation. But we have important growth after acquisition in each of the acquired companies. We had acquisitions in the total amount of EUR 5 billion, plus the BRL 9 billion of [indiscernible] and we went to 9.3, growth of 60% after acquisitions. That based on managed tools added to automob and Simpar's ecosystem and the people acquired our brave assets and acquisitions. So that also translates into a new ecosystem to boost synergies. We focus on implementing and expanding our portfolio of this with 20 dealerships in the [indiscernible] and Brazil. We are only in 5 states with potential 21 states and the federal to explore. I [indiscernible] about the work performed, recognition of the OEMs we work with, and we're able to be appointed in 26 new points of sale in '23. Remember, [indiscernible], 26 recently opened. So if we capture the value of this recent open to dealerships, we haven't still captured all the sale and the recognition by OEMs that came to the country. We were one of the few groups that are working with [indiscernible]. So let's think about [indiscernible] the value and transformation, preacquisition and today. [indiscernible] had growth of 700% in net revenue reaching BRL 6.2 billion in the last 12 months third quarter 2013. EBITDA with growth of 404%, reaching BRL 347 million. Net profit, BRL 116 million. We're able to keep the level of return on invested capital even after the investments pay at 15%. Leverage is still at a level that is cultured and gives us stability to [indiscernible] the business. That's basically because of gains of scale, synergy discipline capital and investment in people. All that said, how do we see the market in which we operate, what are the potentials. It's huge. The domestic market has huge potential to consolidate. If you take a look at the breakdown of the group that operate, we have 4,063 dealerships. They grew with the highest share with more than 50 stores are [indiscernible] very, very segmented.

The groups with the highest share with more than 50 stores [indiscernible]. This is a market with low penetration. If you see more mature markets and we are talking about the U.S. The ratio between inhabitants and vehicles is very different. In Brazil, we have 1 vehicle for almost 5 inhabitants. In more mature markets, it's almost 1:1. And how has the market performed in last years. We have Brazil's new vehicles market, with a peak of 2.66 billion units in 2019. Then a bit of a [indiscernible] thinking of our market share and excluding sales to better performance, which is 0.1% market share. And if we think about used vehicles market, which is a market 6x bigger, 13 billion units without a player that is a reference even more fragmented, we had only 1% -- 0.1% market share in a total market of BRL 1.4 trillion. Now, let's take automotive consolidation strategy to reach a whole new level. We want to see more mature markets with consolidated group's major consolidations. The U.S. market, which is 4x bigger than ours and then the reference players analyze their share in the market, new and used vehicles and in reference the largest groups had an average 2% market share of the total market. And then in a theoretical exercise of what we could seek, we have the following. Today in 2023 we have consolidated for new and used vehicles, 0.7% market share. If we think that we can get to the average of the North American players, our obsession is to go past that of course, but with 2% market share, we would reach BRL 28 billion revenues in automotive. So lots to be developed and explored. Now think about how we could transform? We have already made several acquisitions. We grew 12x in 18 months, but we still think it's possible by means of the main levers, people, as I mentioned, that have made the difference in the company so far. A mix of new and used vehicles and their share in the total sales of dealerships. To give an example, what is now, that is the base of automotive at that ratio of used and new vehicles of 120 to each 1 new vehicle, 120 used to 1. Now with the different companies we acquired, we are at 0.6%. So there is huge room for us to increase our share. Also working with F&Y. We have dedicated populations, the best partnerships to provide services and integrated team with new M&As. Services that make a difference, sales, focus on customers and increasing the share of services that can be provided like body shop, painting and others. The best practices in efficiency that comes from SIMPAR'S confidence and obsessive focus on costs and capital discipline and new M&As. That make us believe that we can go from BRL 9.3 billion today and reach double the size in 2025. Just as a reminder, we grew 12x in 18 months, and we still believe there is room to grow. Likewise, as we have this levers, we also think that many of the synergies we are just capturing of newly acquired companies and the new structure can generate further value and we believe we can get to even better numbers. So the message is that the foundations have been built and we are ready to grow. I'm going to turn back to Barreto, and thank you very much.

Okay, quickly the idea is not for automotive nonlisted companies. I don't have much time. People spoke a lot and now I'm going to go fast. I'm going to tell you about our plans and how we see that from SIMPAR's perspective. Of course, you are much closer to the listed companies. You are used to that. But in nonlisted companies, we have our plans, our objectives. Sometimes, we move faster as we did with JSL. But I see a huge parallel as we built JSL extremely fragmented market, Cavalcanti showed the numbers in the United States the major players have 2% of the market, but they grow as we do. It's very impressive. It is not a mature industry, not even things at West, and they are far more advanced than we are. But anyway, when we started mid '22, we invested BRL 500 million [indiscernible] BRL 60 million, equity value of BRL 800 million to BRL 900 million in SIMPAR with the acquisitions made so far and we used the third line numbers as reference, we get to almost BRL 500 million EBITDA and grew 7.5%, 9.5%, EBITDA of listed companies in the market, equity value EBITDA, lots of listed companies into us. So using this valuation, our 79% [indiscernible] the acquisitions, 3 of the shareholders became our partner. [indiscernible] is one of them [indiscernible] is the other. So we kept 79% of auto market. Debt valuation would be from BRL 2.6 billion to BRL 3.5 billion with the numbers we have today. In our plans and projections that Cavalcanti mentioned to grow in used cars, organically and through M&A, we're capping a mix of that, and we can grow faster in 1 area or the other, but getting to this growth then doesn't have to be 2026. If we work hard, it can be even earlier and considering the operating efficiencies, gains in synergy marks, used cars sales and et cetera, we want to get to 7% to 8% in EBITDA margin. With debt a bit less than 2x because of the acquisitions, working capital and using the cash generation, so we would need the valuation with SIMPAR's share BRL 5.8 billion to BRL 8 billion. This is to share with you our plans, it doesn't mean that we are going to get there exactly at this point in time. But this is what we are thinking, considering what we have been doing so far, where we are going to get with automotive and it doesn't stop there. Extremely fragmented market, a couple of countries showed the numbers. We are just starting the transformation of a still incipient business in Brazil. Fernando, your final remarks.

Thanks, Barreto . Thanks, Cavalcanti. Okay. Very briefly, otherwise, people are going to tell us to stop. We are focused on acquisitions. You were not within a group that is just acquiring things for the sake of it, merging companies and not knowing what is going to happen in the future. We take care of our people, not socially speaking. We take care of people because we believe they are the ones that made the company. Each of the 3 businesses owners would be the CEO of the company. We have the foundations ready, with a leader for each group of brands prepared for the growth [indiscernible] shared with you because these are different businesses, different regions and different customers. And our specialty is to provide customized and differentiated services. And this is why you have to have business leaders prepared for growth, be it in luxury, premium or economical cost. And we did that and we are focusing our backlog operations in [indiscernible]. Corporate is in [indiscernible], where we have our [indiscernible] centers. With separated areas, separated names of companies, we make agreements with the people that are coming to us. [indiscernible] 60% without considering the 3 last acquisitions that are not under our management yet. We believe in growth from 70% to 75% considering the [indiscernible] 30% comes from the appreciation of vehicles. But 40% cash from the people we have ahead of the business. This is how we see the dealership business. And just to share employees want to believe in the dealership business. In the U.S., you have operational lease in financing, you know everything goes. What I mean is that 60% to 70% of the cars there are still sold with people that don't go to brands they want to buy or 50%. So we don't believe that the world is going to end in subscriptions or rented cars. There will be a mix. And SIMPAR's positioning without the [indiscernible] bring dealerships that are going to be a point of service close to customer and customers are going to be more loyal, working with OEMs and really setting us apart from the competition. How do you do that? It's simple. You have to take a car to the dealership. It has to be fixed overnight if it is a service. I have a friend that is here and asks me. He said, "I want to schedule maintenance. But no one offers me a rented car while my car is under service." We can do that with our test drive cars or our used cars. You have to have centers for body shop and painting. You don't have to have that in each dealership. So customers come to dealership, they can buy, borrow, sell, finance. It's a point of relationship with the availability of light vehicles and focus on services. And remember, you have a part of percentage of cars that are service cars, rent, Uber, ADcars, people tend to work with that. Just an example, to close. If you don't put the subscription car, if you don't want a rented car, but don't want to have the headache of a car. We know how much is the maintenance of a car that runs 1,000 kilometers, 2,000 kilometers. So why not have -- like a health insurance, you pay a fee amount and maintenance is included. Each one of us would like that, no matter what happens, fire to the engine, it is a source of income, and they come and service their cars with us. This is the transformation of the dealership business. In addition to numbers, revenues and margins and our capacity and the capacity of our team that makes it happen. If you have any specific questions, they are here for doing that. The transformation of our business is through organic management, organic growth but in the capacity of the debt to manage and execute and acquisitions have been very precise. We are very big in some regions or are acquiring complementary businesses. In at least 20 stores 9 brands. So we are there. It is a pocket of business until a dealership that is located in [indiscernible] in Toyota close to where we are. So these are the types of acquisitions we believe in to transform the value of our business. It's not acquiring per se. It has to make sense, bring synergy to really transform us in size. Thank you, Cavalcanti. Thanks all of you that have made it happen. Thank you.

I'm going to thank Cavalcanti and Barreto about automotive. Fernando, thank you as well. And Barreto is going to stay with us because now we are going to present CS Infra. Barreto, thank you again.

Okay. Sometimes you know we are frustrated that our listed companies are not valued that they should. We mentioned they are listed companies. So the presentation tend to be slightly different. I'm going to focus on numbers less than explaining what it is. You already know what it is. So very quickly, we have some investments in infrastructure, focused on services. Each one of this business with independent management, some of them with partners and people do the day-to-day as if they were business owners. So I'm talking about SIMPAR's perspective, talk about each one of them and refer to each one, as I talked about automotive. Talking about some of the [indiscernible] what we expect for the business. So first concessions, to start with. You are going to have the numbers in the next slide that 1.5 years ago, we took over the concession. It was an auction. Now we started with renovation work. So 2 parts in the year completely without investments in the hands of the government. The objective was to renew the infrastructure and transform the operation. So renovations are to invest BRL 600 million in 1, 1.5 years. In the beginning of '25, construction will be completed and new transform operations, partial decrease in revenues, EBITDA, et cetera. There is a specific funding from BNP. That is a specific bank of the region with subsidies. So the capital structure is all in place, and we are executing CapEx. The highway of [indiscernible] was also recent. We took it over 1.5 years ago, 280 kilometers. 200 kilometers maintenance and 80 kilometers was to be picked. We are completing that in the end of the year. In the beginning of the year, we are going to have all the CapEx invested, 200 kilometers and 80 kilometers of pavement, 3 top classes, we already delivered 3, The 4th is to finish in January. So as of January, it is no longer free of risk. We will have the [indiscernible] revenues and the government counterpart. We have a production of [indiscernible] if it doesn't happen, what was expected in the bid, the government will increase its spend. So we have a very well protected flow. Also with financing from BNP and subsidies. PRT [indiscernible] the most mature asset we built commuters in the city of Sorocaba, bus corridors for urban mobility and the terminals that have already been built. We built 2 corridors. We are ending the third one. So I would say it is the most mature assets of the group's concessions. Then Ciclus, the largest waste treatment center in Latin America. Here, we are finalizing the re-adjustment of the contract and expanding it. Very soon, I'm going to show you the numbers. And most recently, we got the concession of [indiscernible] of the historic center. The idea is to have the municipal market. We are working on that and new CapEx to build the market with parking space and revenue comes from the parking, the rental or the lease of the market stores and also marketing and advertising. As a counterpart of the government. We're going to start with the bulk of the municipal market now to be completed by the end of next year. So also plan to be a mature asset in [indiscernible]. To talk about each one of them, the history I mentioned investments of BRL 700 million and here, just a side comment before we talk about the future. We started operating as soon as we signed the contract, even without CapEx invested, we had revenues of BRL 188 million with EBITDA of BRL 32 million, with almost 0 CapEx in the period, just take over and change the operational management of the ports. From now to '26, we have the CapEx BRL 700 million and modernized the port structure. And multiply its capacity for the transportation of cargo, both our imports and exports that will meet the revenues to BRL 400 million and in this first phase BRL 180 million to BRL 200 million EBITDA. We believe the asset to be mature. We are going to increase also silos for the export of grain by 2024 with marginal investments with the cash flow of the business. And then this maturity, we are getting to BRL 325 million to BRL 400 million EBITDA. With the contract extension -- I'm trying to go fast, we get 70 years concession. So without going too much in detail, discounted cash flow and going to the complexity of valuation, we got listed companies that do the same. With equity value from 9x to 11x -- equity value EBITDA of 9x to 11x. In the short term, we believe this is a BRL 1 billion business in equity value. And in 5 years' time, BRL 2.5 billion to BRL 4 billion in equity value. This is how we see the ports [indiscernible] . Here, a smaller business that we are just completing the work. Just for you to have an idea of what the maturity is going to be like, full year '26, BRL 100 million in revenues, BRL 50 million to BRL 60 million EBITDA and deleverage the investment. Total investment, BRL 300 million net debt to equity from BNP. So in '26 we start to deleverage and thinking of market multiples, just highway concessions, we would have a business of BRL 41 million to BRL 100 million [indiscernible] we have partners there. And at the relevant asset as relevant as the port is Ciclus. As I mentioned, we are just negotiating the final adjustment of contract. And this is an exercise for us to think of the Ciclus EBITDA if we optimize important things to us. Resume the sales of carbon credit. We have 6 million carbon credits. We can generate 1.5 million a year discussion on the protection of gases. One of the by products of the landfill is gas production today from 22,000 to 25,000 cubic meters an hour. We have a contract of 16,000 as a surplus. We generate energy, and we have still decided whether be able to have a biomethane plant [indiscernible] but this is monetizing the surplus, monetizing gas, carbon credits and also we adjusted [indiscernible] So we go from BRL 326 million to BRL 625 million and EBITDA goes to BRL 300 million. And we had an exercise a bit broader because we don't have listed companies in Brazil, but we have some in the world with an important work on waste treatment. These companies are trading from 12X to 13x equity value to set about BRL 2 billion in the treatment station alone. I'll be talking about the other assets later on. But we haven't added all the parts up, but I will be showing you that in a slide, including all the assets and other that are not included in this one. I'm sorry, I was brief to make up for the time, we're running late.

Well, feel free to make any other comments. I just came here to make a comment. When you look at the water treatment plant that's happened in other industry, [indiscernible] when we look at what we're doing in infrastructure, let me share with you. We'll not be hurting any other project of SIMPAR, it won't jeopardize capital to invest in infrastructure that would require a lot of CapEx. We don't have the capacity. We don't have the financial structure to do that. We are looking at these projects, less CapEx required, focused on services. When you look at the treatment plant, you have the logistics to treat waste in Rio, Ciclus, BRL 300 millions to BRL 600 million in 2026. In 2024, it's already BRL 520 million, BRL 530 million in revenue. It's not further down the road. Now you'll be able to see that get spilled. You'll be seeing those results next year. When you look at the port, we have the direct revenue, and there's also the indirect revenue. What does that mean? It's used for fertilizers. They import fertilizers. You could have a bin, we could deliver that directly. You could provide a supplementary logistics service. We're counting on the business itself, BRL 10 billion was the EBITDA, not even at full capacity. So we are focusing on businesses that can provide services. Well, the market has really been impacted, brought the market down, and we are building a shopping mall, an entire infrastructure around the downtown area of Cuiaba. And again, an independent company. They have their own CEO, their own managers, their own business plan, it's not within CSI. That's why we are resorting to experts that can do that and do that well.

Thank you. Barreto, Fernando. Moving on, BBC Digital. Paulo Caffarelli, BBC's CEO.

Thank you. Good morning. It's great to have you here. First off, let me introduce [indiscernible] , our CFO is in charge. We are the youngest child of the SIMPAR Group. That's why we came in last. But it's just as important. Let me tell you a little bit of our history. It's a bank that came out of a leasing company back in 2014. In 2021, we received approval of our Central Bank to become a multiple S4 bank back in December 2021, that happened. In May 2022, we've introduced the first banking product, our CDC, our #1 product to operate as a bank. Of course, we have other products. But CDC is our number -- our cash cow. We've been working for 18 months, our main goal is not only to develop the bank to make it grow and make it a competitive and efficient bank. We contribute to the SIMPAR businesses. Again, our #1 goal is to be that catalyst and contribute to the growth of the SIMPAR Group. When we sell that the group sells light vehicles, heavy vehicles, new used cars. We play a major role in that sense. But let me point out something that I believe it's important every time we talk to analysts saying we have no privileges because we are bank that belongs to the group. Our focus is to remain competitive. We will gain that operation if we can pull it off. Otherwise we won't be awarded that operation. There are several banks that operate in the group, and we compete with them. So when we talk about financing new, old, light and heavy, we work with Vamos/Transrio, Movida and [indiscernible] Movida sells over 70,000 cars a year. Movida has 107 dealers generating a lot of volume. Of course, so this is a snapshot of the bank started out as a leasing company. It became a bank back in 2021. These are the results for the past quarter. That's what the bank looks like today. Assets amount to BRL 800 million. Credit portfolio includes 80% in CDCs. You have that leasing revenue every now and then resort to leasing, but 80% is CDC, direct credit to consumers. When you look at the last 12 months, we could generate BRL 500 million. That's the bank's capacity. That portfolio of BRL 648 million will give us a receivables portfolio of BRL 900 million. This is, again, very important to us. Collection, BRL 573 million. When we talk about RI, Polo, Dennis, your concern is what is the delinquency rate? Our delinquency rate is 2.37%, [indiscernible] which is the Central Bank ranking, the Central Bank. The latest publication back in September is 4.3, that's the market average. So we remain at the appropriate delinquency rate. And 2 important things that show how conservative we are. The average entry level is 30%, the down payment. The average down payment is 30%. We remain very conservative. And the average maturity, our duration is 45 months -- 25 months. So the average is 45 months. Our average -- our average is 25% to 30% of all the financial operations of the group. Can we do more? Yes. But it has to do with competitiveness, the funding costs and also our capacity. You have to have the funding and the capital to back it up. Moving on. When we compare what we were and who we are today, that's the company -- the leasing company back in 2020 and the BBC Bank in 2023. Our asset portfolio was BRL 255 million. BRL 800 million today, as I said, a 45% CAGR. Credit was BRL 175 million is now at BRL 648 million. That portfolio that generates those BRL 900 million, as I said, origination was about BRL 100 million. Now we are at BRL 500 million. Cash generation as a financial institution was BRL 37 million. Now we're talking about capital interest. We are at BRL 100 million today, and I can be proud to announce that in July, we are making a profit. When you set up a bank, you have that initial cost commissions that you pay upfront. Profitability return will happen as payments are made when you reach that BRL 100 million. We, of course, are in the black. Catch -- our collection was BRL 143 million. Today, our portfolio is BRL 573 million. Delinquency was 4.32%. We are at 2.37%, a 1.95 percentage point decrease. Basil index -- Basil index, rather, was 12.74% is now 16.97%. We are a multiple bank as I said. We are a commercial and a leasing portfolio. There will be other projects down the road. The initial product was CDC. Now in November, we are introducing a working capital product and full plan so that we can operate in some stores, some dealers. Movida, for example, they have stores. They've been selling Movida cars for almost 10 years ever since the start of the company basically. This is good for some operations there as a side business. Our core business will remain the CDC. And I think Fernando will be pointing that out. And Fernando makes sure that he says that to me on a daily basis as to how conservative we are and we should be. We're not competing with [indiscernible] Itau Santander, we actually support the SIMPAR businesses. But above all, we have to be careful enough. We're not a different element. And by doing so, we have to remain very conservative. This is just a snapshot, 58% of our portfolio in terms of volume, in terms of value rather is from heavy vehicles, 42% from light vehicles, the average ticket for heavy trucks are bigger. When you look at the contract level, we had 9,000 contracts, 80% those are from light vehicles, 20% from the heavy vehicles. That set of changes. We have to have a lot of light vehicle contracts with smaller tickets and a few with heavy vehicles with higher average tickets. For dollars, it doesn't matter whether you are S4, S3, S2, S1 bank on top of talking about people, IT, information security. We have to be extra careful every day. And business information, all the information we need so that we can adapt and adjust the bank. So we have to have a diversified collection of sources. When we were a leasing company, we had to issue those lands, they were very expensive instruments. When we implemented the bank and the CDC product, at the same time, we are now part of the collection platforms. We're partners of several other banks. When we use platforms since investors, especially individuals, they're focused on the FGC guarantee. They become an important funding supplier for us. Their funding is at a very reasonable cost, and it gives us conditions to compete with major banks. Of course, we don't have the same margins of large banks, but we can have the same rates, the same prices. This is key to us, I'd say. You have to have funding so that you can become competitive and the capital structure, and I'll be explaining that in further detail. Let me now address what the bank will be in '24 onwards. Of course, we remain solid and strong here. We're generating results. And at the same time, we would like to contribute even more to the success of the group. And we have a long way to go to expand our participation even further. This is a snapshot despite of what our colleagues have said about their own companies. Look at the size of this ecosystem so we can provide financing. Out of 108 dealers, Movida used cars, 92 stores, Vamos has 77 stores. And let me remind you that we are the payers of everything that JSL pays for its partners. So the BBC pays out 100% of everything we pay throughout the year, BRL 1.2 billion a year in terms of payments, on behalf of JSL, that's an important branch of our activities. So that helps us establish that relationship with those customers or those truckers. So we have -- we're offering the digital experience to these customers. So it's a long-lasting relationship. They've been rendering services for over 10 years with JSL that help us establishing that long-term relationship. Moving on. Again, this is another exercise. We believe it is very feasible when you look at all the plans and when you look at our track record in the past 18 months, the performance selling new, used cars, light and heavy vehicles, and that's the way we see things. In 2026, we truly believe that once we manage to maintain or even increase our origination by 2026, origination volume in 12 months can reach BRL 1.2 billion. Our portfolio at BRL 648 million today, it would increase 4.3x, BRL 2.8 billion. Our portfolio then be closing to -- will be close to BRL 3 billion. I'm not talking about outside of the group operations, just within the group's ecosystem, these BRL 2.8 billion will generate receivables reaching almost BRL 4 billion. So we truly believe in that. This is what we've been doing shows that we're doing the right thing in that direction. When you look at annual growth rate 34% in origination 63%. Well, in conclusion, this is my takeaway message. Would like to show you how robust the bank is. A very solid bank requires these items. Asset structure, 99.9% has actual assets as a warranty as collateral. Of course, I'm talking about trucks, cars, but this is important. The quality of our portfolio. 96% of that portfolio has low rate -- low risk rating. ABC customers account for 96%. If I cut that to AB, 90% are A and B customers. Again, it's a reflection of the delinquency rate of 2.4%. From the get-go, we have that digital DNA. Fernando has supported that process substantially. We're looking for the best solutions in the marketplace for everything we needed to put the bank together, integration platforms, payment systems, systems for origination purposes, the relationship we have with the dealership and the relations we have outside that ecosystem. And again, the fact that you're digital, that helps tremendously throughout the process. When you look at the market and you research the marketplace, you will realize we can provide much faster operations when compared to banks that have been in that business for quite more time -- for longer. We are self-sustained. How much money is the SIMPAR going to inject in the bank? Our calculations indicate that we still have need according to the plan we submitted to the Central Bank. Next year, we'll be needing BRL 85 million, in 2025, BRL 80 million. As of 2026, we will no longer need resources for that allocation of resources because the PMT generation will provide us with that independence to be able to operate according to the conditions we believe are healthy. As to profitability, every exercise we run as of July, we are in the positive side, our profitability will be appropriate to the market standards when compared to large banks and midsized banks. So that operation remains very significant to us. 30% of what we have today are not in the SIMPAR ecosystem anymore. So we take good care, make sure that everything that happens outside the SIMPAR Group is done taking into account the methodology, the technical analysis that we do for the group, remaining conservative, as I said before. Again, this is where we operate today. Outside, we have about 25 respondent banks that generate operation. Credit analyses are conducted by ourselves at SIMPAR with the same rigor we do things internally. And we still, in the future, being a bank specialized in mobility, a niche bank you will be able to compete with the top 5 banks. Brazil, Santander, [indiscernible] , you have to have capital funding and you have to be [indiscernible] it's difficult to set up a bank. International experiences is proof of that. We want to be a niche bank specialized in mobility to fund light vehicles, new vehicles, heavy vehicles, used and new vehicles. So that's our main goal. And we do believe we're heading in the right direction. I believe that next year, we'll be able to show you how much we have come along that way in that direction. Thank you.

He comes last, he's more experienced and he's a great speaker. Anyway, all jokes aside, let me just share a couple of things because Caffarelli mentioned 98% of these operations is for vehicles and trucks, cars and trucks on average, 30%, 30%, that's a down payment, right? Down payments amount to 30%. Assets we're familiar with. It's in the business we're familiar with, and the quality of the assets is great. It's important to share there. When we talk about the ecosystem, we'll keep on having people that would like to buy a truck or a car and there are used cars, and then BBC will finance that. We have about 20%, 25% of the volume we make. That's how you get to know your customer better. That's what I believe in. Are you doing something outside? Yes. Of course, you have to look for other opportunities elsewhere with the same rigor with even better conditions for the bank itself. What can be done? Movida has over 1,200 store owners that can purchase a car. You can give the guy with a credit and the vehicle is the collateral, and they have the asset to sell. It's a full plan for both the dealer, the bank will be a business generating returns. We're so concerned about the business, someone as Caffarelli with a lot of knowledge. That's only proof of our concern. You have all the regulations that must be followed. We have opportunities inside the ecosystem but we want that quality and security, and thank you, Caffarelli, for the good work we've been putting into this BRL 1 billion is for truckers. [indiscernible] we're paying over BRL 2 billion a year for truckers, BRL 2.1 billion. Okay, BRL 2.1 billion. So they're backstabbing you. There's some numbers to be updated. That's something what we call the letter of freight, you give them and they will exchange that, and they'll have to pay a discount. Those truckers that work for us or any company of the group will have a digital account, 60% to 70% upfront. And when they deliver, they get the rest of that payment. We're helping truckers out. What we're doing, what we have to do. Most companies don't do that, unfortunately. So we'll attract even more truckers, but that will give Caffarelli, the track record of truckers to give them credit in the future so that they can purchase a used truck in one of our networks to contribute to those that are not willing to rent. They are willing to purchase a car or a truck. That's the rationale behind all the integration of the companies. It's day-to-day business for us, but those of you outside may not see that. This is only -- the only opportunity we have to share what we're doing internally. Let me just make a comment. It's difficult to talk about after the boss.

The boss is the customer. people that rent our cars out there. Want to talk that delinquency rate is at 2%. People may have problems throughout that financing the leasing contract. We can help out these customers through the other channels of the companies. I've failed to mention that. Thank you. Thank you, folks.

Thank you, Caffarelli, Fernando. That concludes the presentations section of our conference. We'll be inviting sustainability committees and we'll be looking at the sustainability. Mr. Fernando Antonio Simoes Filho.

Good morning, everyone. almost good afternoon. I'm going to be brief, bringing you a bit of the history. But first, I would like to thank you to talk about this topic that I love in the company that I have a history with and speaking on behalf of Paulo. Paulo is the Director of Sustainability and it was best to put me to talk to take care of the event. But well, I already said that last year, but I bring it back again. This is our governance structure in ESG. We have 4 sustainability committee, all listed companies immediate to the broad, [indiscernible] as members of our committees together with the CEO of each company, in addition to the committee of SIMPAR. Having us together in all committees has brought synergies and exchanges to the group seeking best practices and looking towards the same direction and focus. They are all very similar factors in terms of social environmental challenges. And we also have this executive academy, where we discuss topics with the group's directors to deepen and expand knowledge. In addition to that, we work with 5 dealers on the day-to-day. So we have materiality studies to understand relevance impacts and risks, are more mature now, then we have action plans and goals to be monitored by the committees. Also important to mention is that execution of plans and sustainability challenges is developed by each team. We believe that a lean group should have the role of P&L, but sustainability has to be part of the business culture and not responsibility of the specific area. And with this action, then we work with external validation, certifications, indexes that also help us show what we do. And finally, communication and transparency to the market in what we have been doing. Our material topics are sixth in which we identified risks and positive negative impacts, and also opportunities that we can be better in our business with more efficiency, more revenues and more connected to what we need to be in the future. So that guides our work lines. I'm not going to go into detail, but I will talk a bit about ESG, environment, governance, social work what we have done in this last year. In environment, I think the highlights are emissions, we had a huge increase of emissions, but lower than the growth of the group. So if you take a look at our blue line, which is our indicator of intensity of emissions is way below the target that we established in the bond of 2021. So we are advancing there. Altogether, we [indiscernible] first because the group as a whole grows and also because we are improving our inventory of emissions. The main highlight this year is that Movida had its emission reduction targets certified in September by the science-based target. It is the second rental car company in the world that has been certified. I don't know if you know the science-based target, but it is the best platform to validate carbon reduction goals of companies. So people say they are going to be net 0. They are going to be distributions by x percent, but it is the SBT that validates these targets, and we are talking about a 50% reduction of emissions until 2030. But more important than that, the exercise that SBT professed to improve the inventory of emissions and other factors. So I think today, we have a very good inventory, the good practices off of me that are being taken to other businesses. For you to have an idea of the challenges in Movida, 99% of emissions are Scope 3. So it depends on the relationship with our customers and suppliers so that we can reduce emissions. And another challenge will be through good practices and how we compare our inventory to others. And we have to be careful not to compare apples to pears, but do better each day in our inventory. And I think this is the major accomplishments that we had in environment. In the social area, the group grew by 12% in number of employees with women 16% plus. So to say, we have 28% women in the group, 22%, I'm sorry; 12% in leadership. Our challenge is remaining operating position. So we have a training program for women to grow and for us to have more female leaders, but we had the focus on women and the steering wheel to bring truckers and machine operators that are agreement. Insurance companies know that women are better drivers. But in the industry, we still have a huge bias that some professions are more male. And we qualified a huge number of women and also change the mind setting fliers. Human resources started to understand that we can have qualified trained women that sometimes are just not seen. And another important point is that we have our apprentice program qualifying more than 700 young people to start working with us. And now the program is purely almost an entry door in the company for them to develop and also work with very vulnerable gangsters, sometimes in foster homes. So it's a part of our social work, but also a huge opportunity for the group to reduce turnover and have more people working at entry levels. I think these are the main points in social. And in terms of governance, just as highlights, but what shows our culture and our values are the operations with related parties since we weren't public. We had 4 transactions with related parties. And in all of them, that is all transactions where we have some kind of relationship with related parties we let the minority shareholders to decide, and we follow them. That shows our profile. I don't know of any groups that do that in 100% of transactions. That shows how we value and respect the minority shareholders. And still talking about our culture and governance. We have the Board, very lean, but 40% with independent members, trying to get to unanimous decisions. If there are different views, we have to sit down on this and that reflects in our governance model. And we enhanced our policies. This is not new things that we already taking to practice, but that we understood that was very important to be documented and spreads throughout the group. As a result, we have all the certificates. We improved our rating in all certificates. Most of them, we are best-in-class in Brazil, with our ratings. And in addition, the IS [indiscernible] for the second year in a row, SIMPAR joined the ISE together with Vamos and Movida for '22, '23. So this is a very important sustainability index. And to close, I'd like to bring a bit of a view for the [indiscernible], we're always straightly looking into the future one to a year's time, but now we want to have a more long-term view for this agenda. Climate change, carbon 0 that is part of society, and we are insisting the process in the sectors in which we operate. We've done a lot that we have to have a long-term agenda for the topic. Safety, also very exposed to that. We have the negative impact. The highest risk is the lives of people but also efficiency and cost reductions on working the topics. So very relevant for the business. Productive inclusion, projects as we have with the young apprentices but also opportunities of decreasing turnover, increased hire, having people that are more loyal to the company and also contributing to society by hiring people that have a difficulty in finding jobs. We've had very interesting cases with female workers, mechanics and also institute. It's very important to us and that works with the quality of life of our truckers. We are starting a platform to focus on financial education, but several other training to improve the lives of truckers and their family members. It is very challenging, but we have the knowledge, we know the segment in practice, and we want to create value and improve the topic in society as a whole. I think that's it. And of course, again, I'm to be open for your questions. Thank you very much.

Thank you, Fernando. It's so good to see how your focused and connecting this to the business agenda. We are going to have the opportunity of talking about that in Q&A. Now I'm going to have Antonio Barreto to talk about management strategic plan and M&A. Welcome back.

Thank you. Bernard, I think the insurance company prefers female drivers, but I don't know. Okay. Jokes apart, I'm going to talk a bit about execution. To share with you some changes that took place. In fact, we added a team to our structure. But before that, I think Fernando said that, I didn't because I was talking about something else. But just to highlight, we do not have a position for the sake of acquisitions. All the acquisitions so far took a long time, tough negotiation, seeking a fair price to us and for those that are selling. It is always a long-term process and where people meet those that want to sell, choose us to sell, and we choose the ones to buy. Good companies with structure capacity to grow all of them without exception follow this line, and we haven't changed, and we will not change that. But just retrospectively speaking, perhaps you saw that in [ Denys' ] presentation, from '18 onwards, we grew compound growth of 31% and acquisitions that is acquired companies grew in EBITDA more than in gross revenue. So when we talk about organic growth, is the combination of the base companies and the growth of the acquired companies. In the case of JSL with more maturity and acquisitions, some companies doubled size, improved margins and results. And that has happened, and we want to see the same with bottom up. Everything is very recent. We haven't seen numbers without nonrecurring effects. But I hope next year, we can prove that everything that we saw at the time of acquisitions when [indiscernible] showed you the bar, I think was the first time some of the dealers that we bought with organic growth that almost doubled in 1.5 years. I'm not talking about a long period of time. So if and if we have a change of profitability in the short term, we think the capacity to grow is huge more than everything that's part of the business. So just to show you how acquisitions have been performing within the group. Then the questions today, we didn't have in the presentation because that was not objected but very quickly, as we're seeing that we invest, we see a potential to develop without exception. We do not have any activity in which the industry is to mature or we are too big. But JSL were a lot. JSL operates in several service segments with logistics and is developing in each one of them. It's not that we are a company that has monopolies of activities. We are far from that. So that is just graphically shown for us to tell you that no segment we are too big or we can't develop any longer. Movida, obviously, the addressable market is something we believe in, not only the rental car, but also replacement of products, people that stop leasing to rent. So we still have a small share in a market that's huge and under evolution. Infrastructure, we have one operational productivity performed. So again, huge universe of possibilities, and we are very responsible. We are not in many things, but we see organic growth for infrastructure. For example, I was asking a bit before waste treatment, for instance, we go into auctions to gain concessions in other regions and create an operation from scratch as we did with cycles to have diversified and bigger assets. This is an example of what we could do. And we believe all changes in the sanitation framework, all the ESG agenda helps us with the treatment of waste. Automob, the numbers we showed, 0.8 in a market of 2 million cars that is very, very well repressed. This is an industry that had 4 million cars a year. So we are in a downward trend. The used car market is much bigger. We are just starting. And the most using [indiscernible] presentation, the addressable market is company fleets. So we are just starting as well to develop each one of the business. We are not in a rush to grow, but I'm saying that we have potential in each one of these businesses to be able to be part of the development of the sector as a whole. Talking about infrastructure and execution, as I mentioned. I've said it before that in the area I work with, we have some teams, one that works with M&A for all SIMPAR companies prospecting, negotiation and execution of acquisitions, a specific team for M&A execution. We also have a very relevant team that works with the following day. So we buy, we separate things, but that does not happen out of magic. We have an integration team that supports the acquired company, connect them to SIMPAR Group and monitor the life of the day-to-day of these companies, particularly contract management. M&A contracts have long life, and we have to take care of that. We have more than 20 contracts that this area takes care of. So integration, synergies and contracts. And finally, my position changed at the beginning of the year, the name of it we have been talking for a while, and we are looking for someone to create a management area within SIMPAR. What's the objective? Now we have a person, a management director that is putting together a team. The idea is for the team to work with SIMPAR's subsidiaries with continuous activities in management, focus on best practices, cost reductions because large companies, [indiscernible] mentioned a project talking about McKinsey. Sometimes that's the way you have to optimize processes. Our idea, of course, is to work with third parties, but also to have an internal structure that works on the day-to-day to help companies. So people dedicated to each of the group's companies under the leadership of [indiscernible] has more than [ 30 ] years experience in strategic consulting and people focus on each company under the governance of SIMPAR. So it's still very recent work. We are just starting to structure the team but using a sample of work developed by this team. I'm not going into too much detail, but the idea is to improve revenue, reduce costs, reduce expenses, network with suppliers, inventory, customers to optimize our asset base. If we use their track record in our companies in reduction of expenses, we see BRL 750 million to BRL 1.7 billion a year. When everything is in place and implemented. In theory, that's how much you can have. Optimization of balance sheet, we have no estimates because that depends on the day to day of each company. Go to talk about [indiscernible] to reduce inventory levels, improve working capital. This is being done, but these are activities in which a closer dedicated team can be more proactive and enjoy benefits faster. And once again, this is for the long term to develop and monitor companies a long time. So great intelligence in company. Finally, what can we expect from now onwards? JSL, we believe that with all cash generation structure and scale, we have the needs to continue with strategic movements, good companies that add value and improve JSL structure, Automob, everything very recent before our contacting us, and we are monitoring the market strategically, being very careful with what we do. And yes, intra, just to show what's to come, but we have a lot to develop in what we have today. But lots happening in Brazil, very few players looking into smaller projects as we do. So we may take part of things, but it's not the main focus now. Post M&A and management, post M&A I did not mentioned, Fernando talked about that. We are very much concerned about people soon after the transaction is announced, we talked to the people, get to have the note group because we want to develop the people inside SIMPAR. Management, as I mentioned, the new area and the leadership. And in planning, we do not only take care of acquisitions. Few people know. But any discussions on partnership with suppliers, investors, are things that we discussed at SIMPAR's level. So we might have a minority divestment of assets. And sometimes, when we see huge gaps of amounts and distortion in what to invest, we might have a transaction with a mature asset. So we developed some assets, and we might close cycles of capital for new movements of development inside the group. Once again, today, all about the numbers. But this is not a projection. This is a discussion that we have internally talking about holding discounts and how the market ceases. On the top chart, we talk about the sum of the parts that these company at stock market price. And the obvious in the companies, all materials that Denys used as an assumption that they come in at net equity. So most of the analysis I see is this [indiscernible] billion minus assets, SIMPAR would be valued at BRL 8 billion, because at the stock market, it was at 6.6%. The discount is 21%. But we don't believe this is such a simple math. In the bottom chart, you have the current EBITDA that were released in the third quarter of subsidiaries. The exception is the highway that I think is the operating number. We had no reference. Other than that, we used actual EBITDA. And we got the references of multiples of comparable companies, I talked about [indiscernible] cycles, highways, Fords. And for the listed companies, we had the same announces. For JSL, companies abroad that do similar activities. Movida, we saw players in the domestic market at 9.2% and Vamos, a mix of domestic and international companies, and we got to [indiscernible] 9.2%. Listed companies are long, if you consider the event of discounts we have with that to BRL 33 billion against the BRL 11 billion that we have as market value, normally compared to [indiscernible]. So we would go from BRL 12 million to BRL 37 billion. BRL 37 billion minus the holding debt is BRL 33 billion. I'm not talking about a holding discount. If it's BRL 15 million, if it's BRL 20 million, then it works for us to have a holding premium, not the holding discount because we transform the cycle business, perhaps we are going to get there, perhaps not now. But whatever you have between 36% and 6% would be a holding discount to an adjusted value of assets. So this is an exercise we try to see things differently. We see all our assets discounted and the holding discounted. So it is a double discount. So it's just to share with you the kind of things that we monitor in the company to try and understand gaps and what kind of conversions we should have. Well, this is the end of my presentation. I'm going to be open for your questions.

Thank you. Now we are going to carry on with SIMPAR Day 2023. And I'm going to invite Denys Ferrez, Financial VP and he is going to talk about the finance and capital structure of the holding. Denys, welcome.

Thank you. Hello, everyone. It's a pleasure to be with you, for those that are online, thanks for attending. We have investors, analysts, thank you for the work covering the company. Thank you. Now I'm going to tell you about some financial aspects of the business. I know we have new initiatives. That's what I'm going to talk about represents 94% of our EBITDA. But the other day, I was talking to rating -- credit rating agency. And in the past, we made the commitment to reduce our leverage. And at the turn of the year, leverage went up instead of continuing its downward trend since 2016. And what I said was the [indiscernible] you invest more and more, then I said, listen, we are a lot more conservative than you think. And he was talking about the purchase that was an early purchase at the change of Euro 5 to Euro 6 trucks that, in my opinion, was very defensive and improves the productivity of companies. What seems to you be something that goes against what we say is the highest benefit. So sometimes numbers alone do not tell the whole story. So that's why I decided to bring this as like to. I know many of you are very much acquainted with that. But that is what enables the group to be one of the largest players in the country in terms of credit access. Our allocated capital is basically [indiscernible]. What does it mean? I don't need to have an asset that has no use. If I am a management of factory plant, that can have capacity of 50 to 90. You have the assets there. Not me, if it is producing. You have it. If not, you adjust. We did that in the pandemic, from March to April, we did that later on, the results are much better. But what we did was to reduce our assets based on the estimate of results that we had. We did what we had in hand. So the first item is very important. All that said, we are some of contracts, contracts that have a time to end. And in the end, thanks to everything you heard today. We have a huge degree of renew long-term contracts, but that bring us item number 3, which is the sale of the asset. The sale at the end is very important because it keeps a significant amount of what was invested. I always say the following. I cannot buy half of a truck. If in thermal cycles or in JSL cycle, you pay BRL 100 million in a truck and then you have a depreciation of BRL 50 million and in the end to sell for BRL 50 million, you are not going to pay the BRL 50 million, you're going to pay the BRL 100 million. But then in the end, you have the residual value of BRL 50 million that in my opinion, the 15 years, I think, is a proven value regardless of recession of COVID, the quality and demand of the secondary market for these assets in the country makes me believe this is cash. This is not an assumption accepted by the financial market, but my point is the following: Financial leverage apparently is a lot higher than the leverage of the business. Let me show you a couple of exercises. But let me show you the track record between estimates and the residual value. However, since the IPO in 2010, has been consistent throughout the 15 years and the blue [ line ] represents the margin. So we know the environment and we know the quality of the assets we own. We only invest in what we know, just like Fernando put it. Maybe the speed of growth may be interpreted as something aggressive, but our vision is conservative, just like Caffarelli described the case of BBC. Well, let's first understand this. When we look at the time frame of maturity dates of these assets. What are the present values here? Let's look at that monetization scale starting September 23, they're worth BRL 24 billion. Okay. exercise number one. We start out with the consolidated net debt, 31 billion for Q3. We reduced that present value. When I talked about the truck that I purchased 400, but I sell at BRL 50 million, different times, present value, BRL 24 billion, I reduced the net debt that you can see and then bring in other balance sheet items, supplier accounts for plan acquisition of payables, receivables and I get to that BRL 13.6 billion September 30. Those BRL 13 billion or almost BRL 14 billion. If you were to compare that to this number here on your right side, BRL 7.3 billion. This is just for the EBITDA or the service EBITDA you wouldn't be it would be fair to bring in the assets I would be counting that twice. BRL 7.3 billion -- those BRL 13.6 billion, the leverage is 1.9x with the holding take in there. It's a 3.7 index x EBITDA. So the sky will take 3.7 years to pay that I'm trying to show that using the same basis, BRL 3.7 billion, our number would be 1.9%. If you remove the holding from it, the debt of the holding, without that, anything or nothing could be developed. That would be 9.7 operations. So that would be even smaller. It's 1.3x. So that you can take away that feeling of when you speed things up, no one knows whether you can generate money or cash. So this is the first exercise. The first example. Onto the second now. Let me give you some context. These are the listed companies that account for 90% of net debt and 94% of our EBITDA. And we use the following scenario. We'll be operating all contracts all the way to its maturity. There will be no renewals and no new contracts. Two questions come to mind. Number one, if you do that, can you pay your debt? Fine, you can. If you pay your debt, how soon can you pay that? All right, we ran that exercise for JSL. It will pay before Movida and then before Vamos and how young the companies are that has to do with the growth rate of the companies and contracts times. These are longer here. But this is very short, you would be able to pay all of your debt in 2.5 years, including the holding and paying interest because the other exercise is static, BRL 3.7 billion, you do not include financial expenses. But here you do include them, smaller or shorter than the number you see in the financial market. including interest, if you remove the holding company, what would happen? They'll be able to pay up in 1.8 years. This is huge cash generation that is implicit. You can't understand how much it can grow, not needing capital. That was exercise number 2. Onto exercise -- okay, these are the 2 exercise. Let me now compare the 2. BRL 3.7 billion, that the standard we use in the covenants analysis, EBITDA multiples, how soon, how long it would take you to pay that up. 1.9 the [indiscernible] present value from assets a lot smaller than BRL 3.7 billion. And the one on the right, including interest less than BRL 3.7 billion. It's BRL 2.5 billion. So in conclusion, the leverage of our business is a lot better. The leverage of the business is a lot smaller than that of the financial leverage. If you analyze credit, you have a hard time attributing value to cars, trucks. It can be a little more, less. You wont to be selling everything even in the middle of a crisis. When you look at the secondary market, fortunately, I've been through all crisis, 2008, recession COVID and I've seen the capacity to monetize given the quality of our assets. So we are very comfortable if you are on the hand side, if you're originating -- originating contracts regularly throughout the years. Let me address SIMPAR more specifically. The first aspect I would like to point out is that we have been focusing on liquidity, BRL 2.7 billion. If you are at home in blue -- dark blue, that's cash, amortization flow, light blue is consolidated. I'll be focusing on SIMPAR, BRL 2.7 billion available cash, amortization flow is very long. When you combine these 2 elements, you can feel comfortable that we will be able to plan out and make the moves when need arises and according to our strategic planning. Let me talk about SIMPAR -- we talk about the speed of us since growth is discretionary, you're not obliged. You have to grow. You can always change that pace. Let me draw your attention to this detail at the bottom. This is not what we planned out. This is just a hypothesis. Nothing that the company has done in the previous 65 years. That's nothing we've done in the 15 years, I've been with the company. When you take the net debt in Q3, let me go back in time. No projection, removed from the net debt, all the growth effects to see what the leverage would be when compared to September. From BRL 31 billion, you removed BRL 6.8 billion of CapEx, other investments made in '23 added into the LTL... I can get to BRL 24 billion in terms of adjusted net debt right next to the EBIT was BRL 8.4 million. You have to remove the growth contribution to that 12-month period. So you come down to BRL 7.2 billion. So instead of 3.7x that we showed you, we would have, in that case, BRL 3.3 million using the classical financial methodology, not the 3.7%, 3.3% without growth. And now another exercise, if you were to take the 3 controlled companies that are public, running the SIM exercise, the weighted average was 3.1x for Q3. And if you apply the same methodology, you come down to 2.5x. So 2.5x is much smaller in a very short period of time. Out of those 2.5 since we want to operate under 3, if I were to apply those 3 times, you have some 0.5x leeway for the EBITDA. So that would really flow between BRL 2.5 billion, BRL 3.4 billion when you take into account SIMPAR, that would amount to BRL 2.1 billion, which is in the September upshot, 55% of the total net debt of SIMPAR, another important aspect of SIMPAR. And the third element I would like to bring, I use Barretos' presentation for that purpose. On this side, you're familiar with that. You add up all our stakes in these companies, BRL 11 billion in total. On the other side there on the right, what Barreto gave you that visibility based on market averages, the potential is BRL 5 billion. When you put the 2 things together, you have BRL 16 billion. As the result, we have built ever since we had the longest debt back in 2017. 7-year maturity and then '21, we repurchased it, and we reissued it for 10 years, and we would tell creditors that were trusting us at the time that we wanted to rebuild our asset bases that was much bigger than the amount we're loaning. So in that combination, real or potential, at BRL 16 billion, 4x more than net debt of SIMPAR despite market values is only 6.6. Anyway one day at a time, and I'll be doing the further down the road will be -- we'll cross the bridge when we get to it. Anyway, this is something important I wanted to show you. Cash and maturity dates will help us operate despite not meeting it, anyway, this is what we've seen in our public companies. It's only natural for most of you, how you analyze the performance of the company from the IPO up until today. SIMPAR's investors are looking at how much they've invested up until today, not from the IPO. JSL, IPO was September 2020. It increased fivefold the net asset backed in a 75% TIR. Movida, that went through that huge transformation we've seen today, and we believe that our kids, our children, look nicer than they are. It has generated 4x more than what I've invested at. It has multiplied by 4, 28% TIR. And Vamos, last but not least, it already multiplied 12x, 154% TIR. I insist on showing that because we have to be creative in finding ways to keep on growing as far as funding is concerned. I would like to invite those of you that want to come along to, tag along with us. If you think about it, this group has come here. We're just one credit line in 2009. That was the only credit. All the goodwill you had for the equity of SIMPAR. If you remove that returns are astounding of the money that came from outside, which was very little by the way. So the wealth generation capacity and value generation capacities are huge. My time ran out, I'm out of time. So my takeaway [indiscernible] SIMPAR allocates capital and high liquidity assets. We've created several alternative -- alternatives throughout the years to generate a lot of value not only to manage its liabilities. By reducing our leverage will help us -- will allow us to benefit from all the operational profit. It's not EBITDA, it's operational profit. It was multiplied 34 times ever since the reference when we had the IPO. That growth rate for 2020 must be 60% to 70% a year. I'm not talking about revenue, I'm talking about operating profit. So when you think about improving capital structure in the direction that Fernando has given us, this is going to be the same process you've seen in other groups. So when you change the speed, the standard value will show -- will be seen, will be evident. Anyway that's what I had to say. Thank you.

Thank you, Denys. In conclusion, Fernando Antonio Simoes will join us for his closing remarks, and then we'll have the Q&A. Over to you, Fernando.

Thank you, Fabian. I'll be quick so that we can move on to the Q&A. And there's lunch. I know you are in a hurry, Anyway, I'll be very brief. Thank you for attending online. I will be able to give you lunch home, but you can come and join us next time anyway. Let me briefly describe the social activities we've been involved with, Fernando, my son has been helping. It's only the latest fad. Basically, because of my dad's background, we're always -- he was always concerned about our employees or the communities where we operated. So I didn't have that need. But anyway, both my parents had a tough upbringing. But that started with himself. That was demand -- there were demands on a daily basis. So he created that institute back in 2006, focused on where we operated safety labor, where my kid -- my child, worked with us when he was minor, and then he joined the company later on, some 4, 5 years ago, one of the Board members invite him. I think it's time to reinvent the institute to think about this new cycle, taking into account ESG principles. He accepted the challenge and has done wonderful work, has been leading the sustainability, but now [indiscernible] involved environmental safety, inclusion issues, taking good care people. We have a channel called Connected To You, [indiscernible], for all 47 employees, psychologists, health services, lawyers, oftentimes, people don't have any other means, and we do that in a very organized fashion. He talked about women. We have women, workers in terms of inclusion. We have been training women as drivers, as forklift operators, and they do excellent work, you end up contributing in a different way to the betterment of societies. So we want to be integrated with the societies and the communities where we operate. It's part of our sustainable development, just like government has to do with governance with results, having profit, taking good care of people to develop and be part of society. When we talk about infrastructure, we've been talking about small and midsized businesses that we see as an independent business. We can associate, we can have partners and we can generate more value. Denys has been working with us for 15 years. The IPO was 2010. Numbers reflect data from 2009. But anyway, when talked about leverage, let me share with you this. The Vamos transformation, Vamos was a company 3 years ago. It was seen by many people. We've been renting equipment for over 25 years. We've been working in the industry for a lot of time. but the company has transformed itself in the past 3 years. The investments we made, the scale it has today. I'm sorry, it is second to none because of the ecosystem is great. It was only possible because of the CapEx, the transformation from Movida, how can you pull it off? Have you seen all the results of all that CapEx volume at the Movida. This is what stands out. I'll be very honest with you. We look at the depreciation business on a weekly basis or even on a daily basis. We do that in an organized fashion. I mean, with more people at the table every month and every 60 to 90 days, we look at the controllership level. How do you look at it on a weekly basis? You see, you take what was sold for how much, what's the accounting value, the market value. The company is not going to purchase anything that does not have assets with no liquidity, you don't buy something you don't know how to sell it later on. You have no buyers in the future. Throughout my track record, I'm 56. I'm not that old, I started young. I've seen many people get lost along the way by purchasing the wrong asset. We're not doing it here. This is what gives us liquidity and turnover so that we can continue to expand. Let me talk about the current situation, how we are positioned in conclusion, 2 slides and we're done. I'll be very humble here. We started -- we start each day to do even more. I can't recall any of the better times. We have people -- a lot of people that are aligned with cultural value with attitude to execute with efficiency to extract all the results in a sustainable fashion. We're not going do -- we're not pulling any stunts just to have better numbers. You could show wonderful results. If you don't do maintenance, you won't be -- if you cut down maintenance, you have better results, but then you won't be able to sell your assets. I'm trying to explore all the infrastructure with pillars of fundamentals. We have systems, we have people, but it's even more important than that we have value and culture that is truly embedded in the organization. I hate to talk about the management before and after the M&A. We pay very close attention. And now synergy comes in, JSL showed that better results, synergy or synergies brings more revenue, less expenses. So we are at that cycle. Once again, let me point out, this is the last slide. Solid balance sheet for every company controlled by SIMPAR. You've seen presentations from each companies. We sit down with each one of the CFOs since -- as a holding company, we do that on a weekly basis to understand the business plan this year, next year, cash flow, what is selling, what they're not selling. Every week, every simulation we do that with that business plan you've seen from each one of them. Thank you. All of them no exception. We do that with their own balance sheet, the way they are developing their own history. Deleveraging of the holding. As a Board member, I'm very happy with our results, governance, the Board member makes a huge difference in the way we operate at SIMPAR and all the controlled companies. I'm humble enough to say that I don't know what will happen if we didn't have that board. The people that can contribute, but the Board can make a difference because he makes you think, my son talked about it. We respect shareholders. We respect our Board. I have come up with a meeting or I entered the meeting with an idea, and I come out with a different idea. They actually changed my mind. And our mission as executives is to deleverage the holding company, and you see that happen. It's part of our strategy as a shareholder. Maybe in the midterm. Maybe bring that to 0. There's some tax inefficiencies, but that debt was planned so that we could build everything else. Otherwise, you wouldn't be able to do that. And I'm talking about assets with a lot of liquidity, just like Denys, but how are we going to do that? Of course, we respect and learn from you. But you have the impression they have only listed companies. I had to show you some of the unlisted, we registered Automob so that we can interact with the market with... [Statements in English on this transcript were spoken by an interpreter present on the live call.]