TOTVS S.A. (TOTS3) Earnings Call Transcript & Summary

I'm almost removing my mic because when I went up, I couldn't see the amount of people. Well, there's a lot of people here, there's about 70, 80 people. I'm almost talking to you without my mic because it's such a nice crowd. It's great to be with you. I know that some people have come from other states and even from abroad to be with us today. We are so honored with your presence here. As I had already mentioned in other opportunities, we had this idea that I think it's great to do our Investor Day here within our annual client event. And it's a great opportunity for us, for you, investors, analysts, to get to know our -- let's say, our kitchen, to know exactly how our life works with our clients, what the client thinks about us, where are his problems, his difficulties, the opportunities. And so I believe it's a big success, the format we've had so far. I hope you are really enjoying it. My presentation will be fairly quick. And I'm going to tell you what we believe in, our beliefs and we believe that everyone can grow. What moves the company on a daily basis, what gives us energy to do such an event with this amount of people, with this amount of companies, I was here at the end of the event, somebody came to talk to us. The guy has just started within a family group from Goias, BRL 2.5 billion in revenue, Gustavo was telling me, I was in Belem the other day and I met a guy from retail that I never heard of and he has BRL 4 billion revenue. Somebody else just came up here to take some pictures, said I am a client. I've been with TOTVS for 30 years. I am from PLE. We have the company that exports an essential raw material to create medicine against COVID. So our country is incredible, and it has so many amazing opportunities. This allows us to have a lot more confidence that everyone can grow. This is what moves our work. And of course, when we talk about building and 3-dimension ecosystem, the only way to make this happen is to work together. The view that we have as many of you have seen, in the presentation I made to the clients really is to become a trusted adviser. This is a very important position and it makes a lot of sense when we are talking about small and medium-sized business, and the heart of TOTVS as they've been telling you for many, many years, it's exactly this small and medium-sized companies. Many times, they don't have the same resource level and even human level in technology to be able to put together complex environments that gather different parts and need a huge degree of integration. What they seek, whenever possible, is to find the trustworthy partner who can address their needs from A to Z. And this is our role. This is what we're trying to do. This is our value proposition. As we said, we've commented a bit earlier, this wasn't our value proposition in the beginning. We didn't even have a way to have such a wide proposition such as to improve the result of our clients. When we built 3-dimensional journey, we didn't have the elements for a value proposal, a value proposition that is much bigger. We are working and moving every day to build this. We do this through a combination of 3 dimensions that we've been building. What's our portfolio like, it's a question that you ask yourselves all the time, how far do we want to get to? This is the width, the depth of products that We are working and moving every day to build this. We do this through a combination of 3 dimensions that we've been building. What's our portfolio like it's a question that you ask ourselves all the time, how far do we want to get to? This is the with the depth of products that TOTVS wants to have. We already have a portfolio that is the most important, the bigger portfolio in the market for management, not only talking about back office but also vertical applications that give us this depth and this adherence within this segment. When a manufacture client listens to the level of knowledge and it reflects within their products, this makes all the difference when we are closing a deal and when we are retaining this client. This applies to any other segment that we operate in today within our management. In business proposal, we are working to build the most complete portfolio, and here, this is still a very fragmented market. It's a new market that is growing, but it's still an extremely fragmented market. Usually, you will find companies that will do a part of what the client needs. And once again, when we talk small and medium business client, it's very difficult for them to put all these pieces together. The logics we have for business performance is really to complete this picture that will give the journey from A to Z to our client. The whole issue of attraction, retention and dealing with these clients in every possible way, it will be available to our clients in TechFin, FinTech, which I'm sure there will be questions about, talking about the approval that we've had from the Central Bank in Brazil. What we want is to give you a full experience for you as a company with a high level of integration with our products that is very different from what's available in the market now. When we look at Safra, Daycoval, very competent banks, very successful banks for companies, the level of experience that is given to people, it's still very old fashioned. And what we want is to provide a totally different journey to this client, having a portfolio that is complete. Of course, this is not going to happen overnight. It's going to take time to develop, and it's normal, but that's where we want to get to. Why can we build that and maybe nobody else can because we are focused on SMBs, and this only works for small and medium businesses, a big company usually doesn't need this from the same partner. And even if they needed it, they sometimes they're afraid of having it and the small and medium-sized clients, they aren't. And this gives a slight intensity and the proximity and the relationship with our clients and working with them in a different way than any other because we are a big company, we are a sophisticated company. We have -- we are the pioneers for good and bad. We have to test many things, many things have to be adjusted. But our learning curve is ahead of any other player in the market, because our regulatory environment, technological environment, has changed and has changed to better and has improved for people who are joining the market now. And because we have to that BRL 1 billion investment annually in technology, we have this edge. I know I've run out of time, but I'm going to continue a little bit longer. What are our objectives. To multiply many times our addressable market when we look at what TechFin and business performance, and we're talking about an addressable market that is 7x bigger than the addressable market we have within RP. It's an acquirent that will allow us to grow and grow for many years to come. Of course, we want to increase our competitive advantages. One of the big values that we have is the capacity of renewing retention of clients and the more we can embrace this client, the more we're going to have this capacity of retaining our clients. It is essential for us to embrace our clients and of course, their average ticket growth, we want to lead in every technology. At the end of the day, we want to become the catalyzer and the aggregators and all the technologies, is it cloud, is it AI, is it big data and the trusted adviser role, we understand that we are this vehicle, bringing these technologies to the client. Always improve margin when we're talking about 3 dimensions from the same client, we are talking about cross and upsell, they have a contribution margin that is bigger. And of course, this is going to bring us a better bottom line. And of course, we're always looking way ahead. What we're building now is TOTVS 20 years in the future. We want to lead in cloud, in big data, in AI. We have here some interesting information the use of cloud has been growing, as you know, for all of us. In the last 3 years, our cloud business has grown 3x. When we talk about new sales with cloud, we are talking about starting from a basis that it's already 180 degrees. And when we talk about attach rate, penetration of cloud within our base, we are starting at 100 basis and now we're at 140. In big data, some of the initiatives there are very innovative that we've been implementing within the company and also within our clients. And even in AI, we have a test volume and practical applications especially within business performance that it's amazing. I'm sure TOTVS will be a leader in this business. So moving towards the end of my talk, this journey is transformational. TOTVS in 5, 10, 20 years, will be a very different company from what it is today that it's already very different from what it used to be 5, 10 years ago. As you and the board have always said that management has to add a new fingerprint within the company, and that's what the strategy has been bringing a new fingerprint. But this will take years, 2019, the design, '20 and '21 building it, 2022 a lot of testing, 2023, definitely accelerate and converge. And what does it mean to accelerate, converge and integrate? It is to transform 3 businesses that still have a stand-alone side that is very important, including because a part of this new business, this new dimension was built through M&As. So to transform everything into a genuinely integrated journey for our clients, our work will be complete when this figure becomes effectively a reality. Now we have advanced a lot the convergence points, and just the position points have been growing on a daily basis. And we have no doubt that looking into the future, this point of conversion of overlap will be bigger and bigger. This was it. Thank you, Maia. I give you the stage.

Good morning. I would like to thank you for coming here, those who came in person from Sao Paulo or from the other side of the city or they came from other cities in Brazil to join our event. Others came from abroad to be able to participate in the event and those who are also participating remotely and dedicating some time to be able to see what we're doing. So thank you for your time. Thank you for your attention, and I hope you can take advantage of everything. And for those who are here in person, this event is for customers. This is a specific track where we work with the Investor Day, as Dennis said, but after the Investor Day, you have access -- free access to the tracks outside, you can check the interaction, the prospects, the partners, with our teams. And you can also see the company working in real life. Thank you very much. Okay. So I'm going to be very brief. It's basically to show you a broad view of the business. And then you can go in deeper -- my colleagues will go in deeper and you know that many people already talked to me throughout the year. So I don't want to take up too much of the time talking, but it's basically to bring you a few important messages, okay? So the first thing is that TOTVS has never had, we can actually say this, has never had the privilege of being able to focus only on growth. It's always been a company that ever since it was born, also looked that productivity -- profitability, sorry, to be able to support the business. And when the attention in the market was not on profitability, the company never lost focus. So [indiscernible] as administrators of the company, it does have the mandate of growth as well as profitability. So we have not lost site profitability and sustainability of the business longterm. And to remind you of some numbers from the company in the last 12 months, BRL 4.2 billion in revenues and operational cash of BRL 1.2 billion, and these are numbers that reinforce what I just said, and when we compare the operational management of the company, and it's in 12 months, this reinforces what I said. So the company looks at growth as Dennis said and going into these new aquariums and new businesses and also helping our customers and it also enhances our opportunity in our market, but always looking at profitability. Now out of the 3 businesses, this message is extremely important for everyone just to have in mind that the company is diversifying itself in terms of working with the customers and it is adding different characteristics to its business. We mentioned this last year, but it's always important to remind you the original business in the company. So there's high visibility, the model is proven and there is a lot of growth potential, but the characteristic is that the reaction is slower. So I say that the companies they grow first and then they look at the management, and there is a reaction time according to the market that is slower, right? So that's part of the nature of the business. So this new business, a business performance, for example, we bring operations or businesses where the reaction time is much faster, you're more connected to the account -- customers' accounts. So the reaction is very fast. On the other hand, this also brings a degree of predictability that is smaller compared to the management system. So when we talk about digital commerce, this is according to seasonality, and it's great for us to be able to capture the moments of the market. Of course, this also brings seasonality in the business. And the same thing, there is TechFin. So performance with regard to management, it is in the middle of the way when we look at the business model, but when we go into these models of the business, we add these new different models. And when we look at management, it's based on profit or recurrence action. So what is not a recurrence, it's going to get there. So implementation is for you to get to the recurrence. And those who are still based on the licensing model, it's why it's going to be recurrent. So recurrence is the final objective. Business performance also has this characteristic, the characteristic of a recurrence is very strong, but there's also something transactional there. So GMV of this capacity of capturing and participating in the growth of our customers as well. TechFin on the other hand, is purely transactional. So it's business made up of transactions. So it's completely married to the volume of transaction. This brings a degree of predictability that is smaller. So in a scale of predictability as shown on the screen, its management and you have a TechFin, that I just talked about, characteristics, which I talked about. And then you are halfway between both. And speed in terms of capturing in these moments of the market, the business performance of the TechFin, they are much faster. So we add new features for the company, new capacities and abilities, not only on a daily basis, but as a company as a business and for you as well. And then over here, some numbers just for us to look at. When we talk about management, it is a long-term job and still very low maturity, this has already been mentioned here. And the only reason for the explanation of TOTVS growing more than 20%. That was between '20 and 2022. And this is a market that can still bring a growth and we estimate about BRL 36 billion in terms of business performance that grew 48%, and there's a potential of multiplying this 11x and this is still a new market. And TechFin growing 28%. And of course, we know that according to the credit market, there was a negative result in terms of TechFin market, and it's a huge market in relative terms, in terms of growth as well when we compare with other markets that we are present in. This slide over here that Dennis presented in the plenary session. It brings us something that's very important because sometimes we strongly look at something in the business, something of TechFin and performance. And making people look especially in capital markets, as if it were something mature, a mature business, something that has no potential, but it is a market that still has a lot of growth potential. And if we look at Brazil compared to [indiscernible] Brazil is very far from level of maturity in the average that we see in these countries. And so we still have a lot of room for improvement in management. So it's always important to remember that don't lose sight of it. And finally, let's remember that an important part of our construction of the new businesses and the reinforcement of our position has been built through partnerships and you have seen how we are able to be very active in joint ventures and joining forces with other players in the market, the company has always had this. It is a company that works in its open concept. And I think that this is going to be present in the new business even more and M&A also has an important role in strategy that the company has, reinforcing or defending the management business and giving greater depth in the vertical solutions, increasing our cross-selling potential or opening up new markets for us. These are some examples that we brought from our first forum in 2019, and this strategy was placed and put into action. And of course, you remember this, but it's important to say when we talk about Gesplan in our position which is an example of depth of our presence in certain verticals that opens up opportunities cross-selling and human resources, for example, in our markets, especially in terms of business performance [indiscernible] and we have a huge universe and of course, new business tends to benefit more from M&A because it's still building. And there is a very important role of M&A in building these businesses. So we have a lot of M&A involved, the cash flow of the company in the last quarter, it's quite strong, as you saw. And of course, this gives us a privileged position to be able to continue these transactions, the different natures and purposes for different roles inside the execution of this strategy in the current movement of the company. So the message is you should probably expect other transactions, and this game is still very strong on the side of the company, okay? So now let's keep going to Abel and go back to the presentations of my colleagues, and enjoy the day.

Good morning. Welcome, once again. everyone. And my challenge today is to show you through numbers, how human capital in TOTVS leverages our strategy and not the opposite. So I'm going to spend these minutes with you to show this. But before I go into the numbers, I think something that is very important, I don't know how much you saw in the first presentation, Dennis showing this, and it's very important. It's connected because we designed strategy and the culture and the culture has to fight for it. And over here, it was together. We understood that the culture makes the design strategy feasible. So when we look at our purpose, we have our customers that can grow, but there's also a society that grows with us and especially our customers. So -- and especially an internal strength to be able to get to where we want to get. And when we rewrite the purpose, so is our culture going to help this 3D strategy or not. And valuing good people, this is very common for the next day, you go into TOTVS and you say, oh these people are great. And how much knowledge, right, and how people know what they're talking about here. But we can say that we are moved by results because when you go into TOTVS, you notice how our rituals lead to this. And saying this in our culture is very important because it's not discordant. So either you take care of people or you focus on results. No, in TOTVS, we do both of these things. We prepare ourselves to do both. And when we talk about technology. Technology is also everything. It's the last technology, the best technology and our culture already tells us who works with us. We invest in the technology that makes it feasible. The technology that is for our customers. So the technology that is going to make the customer's life easier, that is going to make them more profitable land this also helps us to direct things. Why? Because we want long-term relations with our customers. So technology has to make it easier for them. And the last few, there were 3 that became 5. It is the fundamental direction of our strategy, which is collaboration. So when we collaborate, we are stronger. We collaborate always? No, not necessarily. We have moments where each business is moving at its own speed. Let me talk about the strength of collaboration. We have this [indiscernible] able to run the wheel of strategy. And then it could be just on the wall and directions are transformed into the [indiscernible] development and then we start rewarding the people who have these culture directions and therefore, we're able to create this positive cycle. So this is extremely important to make the strategy work out, putting things together with a culture not moving separately. Going into our cycle, we could always talk about the journey for collaborators. It's not something that is completely isolated. So our first point is that we want to become a brand which is desired and since we are moving in this journey and we're working on the employer brand strongly over the last few years, we have recognized some important things. So it's a recognition of [indiscernible] that was 3 years ago in Glassdoor, which is a site that evaluates employees and employers without any interference of the company. Over 700,000 CVs in our talent bank. 700,000 is a lot of people for us to search through in this bank. In 2022, it was more than 20 TOTVS hired and what happens when they enter the company. So first they have an eNPS, which is 98. So the TOTVS say, okay, it's all right. it's according to what you're saying. So it's a 98 grade when they come on board. And there's 39% of our positions from 2022 being filled in by women and more than 36% by people. And this is our work. So this is a diversity in communication according to the employee brand and to the most attractive companies [indiscernible]. So we put this brand over -- we build this brand for talent. But it's still use attracting. If the truth is presented and the truth is presented for the fourth consecutive year. amongst the best companies to work in. And over here, I'd like to say [indiscernible]. In 2022, it was chosen as the best companies to work in the categories of women and ethnical and racial. Our diversity policy, we have already reached manifest and saying we are and we want to be. So making this invitation for everybody at TOTVS, they can be who you can be and also increasing our pool of talent. And we made the first edition of our program that was directed. It was people with incapacities. It was called [indiscernible]. So we just did this. We specifically looked at have these people to increase the pool of talents in people with incapacities. And in Instagram and our size -- in our site, we are noticed. And it's not just attracting and engaging. People have to stay knowledge has to stay with us. In 2022, we had 22% of reduction in the people that wanted to leave. And we have attrition. We had the employees that, that left us, excluding the years of the patent, and we had 76% of the turnover in the market. So we're doing better, not only when we look at the current evolution, but when we look at the market movement as well. Our strategy made 93.6% of the talent stay with us in 2022. And due to many factors, I highlight our long-term incentive program more than 900 TOTVERS have shares of the company in our program, and we chose them. People are going to receive this. We also moved 8,000 TOTVERS, more than 2,000 in some kinds of groups either promotion or some training or something in 2022. And this brings us to an average of time of 5.7 years in the company. So we also increased its average 10% and you probably follow up the numbers that [indiscernible] and they are usually 1 or 2 years that people remain there. So this [indiscernible] how to keep people at home here, and it helps with the evolution. But it's no use just retaining. It's no use to just attracting and engaging and retaining. We also have to have people who are ready to work. We have invested a lot in our talent pipeline in more traditional programs such as the trainee system or the young apprentice that has been completely reformulated and it has rates -- greater rates of participation from the market. But I would like to talk about our own programs. So we do it in the same way, but differently. We have 2 programs. One is Speed to Hero, a Start Tech and a Speed to Hero is specifically to accelerate the tech career. So we hire people at a certain level, and we invest in these people's education. And at the end of the program, they're already in a higher level. There's a retention rate of about 91%. And the program that is important. So we're moving over to the third stage -- third Speed to Hero program. And Start Tech that was a challenge that TOTVS proposed that TOTVS maintains the U.S. of the social opportunity Institute. And there are so many people in the market, so many young people in the market, and we have to go into the companies. The positions are not what people are being trained for. So we said, okay, let's bridge this snap. Let's bridge the gap of people who are ready to work and haven't studied what they need to get into the market. So we work with the TOTVERS and iOS came in with [indiscernible] with the hard skills and TOTVS became the mentors teaching people to work. We had more than 400 hours of training, almost 100% of the students. They were certified and we've already placed in the market in TOTVS as well as offering it to our ecosystem 53% of this group. And for now most of them in TOTVS and we are marketing this model to other companies because we don't want to compete. We want to collaborate and cooperate so that more companies will develop these models such as Start Tech. And when we look at the research, we know that the main reason for you to stay in a company and the main reason for you to leave a company, these are opportunities for growth and development. In the TOTVS University line, we have the winning model, which is a model that TOTVS produces the content. It is recognized for this content and the network defines what it needs to learn and the priority of this content that is going to be placed. We grew 53% in terms of hours of training versus last year. And when we look at TOTVS, it is more than 393,000 hours of training, this content also go to the customers. So the TOTVERS produced the content, and it's already 2,500 hours in 2022 of training for our customers as well for them to [indiscernible]. And this is what I would like to leave you with. So I'm now going to call [indiscernible] I'm available to answer questions. Thank you.

Affirmed with Sergio. We have 100 investors online, a much bigger number than last year. I've been talking about the changes we've been doing in distribution. We made adjustments in the franchises. We've changed the services and we share what's beyond and what we've been doing for sales with data science, we've been exploring the data sciences subject for many years. The franchises, the distribution channels, and we've been doing this back stage work that we've been doing. And now I'm going to tell you a little bit about it. Things that might be new to you, things that you might still have doubts and about what we've been building. We have a lot of intelligence to show you in all the years of experience that TOTVS has built. So we've built many tools to have integration, to have data. We've also built tools to have a capacity issue. Me being a TOTVS sales person from, for example, PLE, I can see the potential from that client with real data. And this information is available for everyone to optimize and help this process. So going through each one of the tools we have that it's our own. We have it as a customer success within the market. But we decided to build it because of all the info we have from Brazilian companies within our system, we looked -- we thought about looking, we have an article to look at. We have many important tools. We have tools within TOTVS for the success team and the TOTVS' team where we can have the 360 degrees point of view from the client. If you look at tech, this is available for our resources, our talent and it helps a lot within this tool, and we've built everything and we've built a lot of information relating to our clients. And they can see the client's white space everything that we have from TOTVS, everything that we don't have and all the opportunities they have. We can value that, put a value in the white space. And to be able to extract this from this white space that I commented, these are true information. We've just changed the name of the client because the data is going public. We have information. We can't, of course, talk about the revenue from the client but we use a very good tool, what products they use, and we also have artificial intelligence to help and provide us with new solutions that have another fit. So it pushes over new playbooks and activities for our client to combat. This feature, this tool moves to every dimension of TOTVS. We have a lot of this. So we can identify the opportunities in specific issues. And we can tell which competitor they use and the information of this client within the tool. An important issue is that this data is safe with TOTVS. This is common in commercial areas that they take the data with themselves to other company, and we end up losing tracking, but this belongs to TOTVS. It's when you join they can -- when people work at TOTVS, they can access it. We have AI behind this to the clients such like this, they use APC, our cloud solutions. Within the cloud solution, we started this work. So I can within my clients know which one have clients, what technology they have. And if they have, for example, a technology that is too old, that is old fashioned and what they need. So then I can approach this client. Gustavo is going to talk about that specifically by knowing what infrastructure problems they have. This for me is a huge differential. I'm not going to take a client to sell our cloud solution if they have just bought, for example, many servers. I will talk to clients that need cloud solutions. So artificial intelligence is fully connected in the commercial area. This is something that we don't open up publicly. We've been building that for many, many years. It needs a lot of technical data extraction, but it's already available for the sales force at TOTVS. We also have migration cases, but they are outside the usual models and people that can generate more income and revenue to TOTVS. And this has been done for many years. We've built a few years back, an index that we call IMG, the maturity and management level that we've built within the product area. So everything that we've been showing you here has a lot of support from the technical areas at TOTVS. We have built it [indiscernible] which is the Institute of Research -- Economical Institute of Research. And we can see what tools they're using. So I can compare. This is not a white space. They already have the TOTVS solution. It's how deep this usage of the tool is, and this is available to the client. They have access to understand and know how they can use the TOTVS technology and compare it to their peers. We have this a lot in production. We have many companies in Brazil that still manage their production through Excel on paper. And the company that automatizes their production has a huge gain. So we start comparing this usage of the depth of the tools by the client. So it's available for the -- to the sales force, our value engineers use it, but the client also accesses it and compares it. So they have the TOTVS solution, but maybe they're just using it partially. And the more they use our solution, the better the walk in the adherence with us in the long term. If they use it in depth, they probably won't change solutions. They won't leave us, they will keep on using it. So we have built this tool with [indiscernible] through statistics. And this is for us, but it's also for the clients. We have a road map of solutions that are made available to the clients. We don't have 100% of our products yet, but we are building it for every TOTVS solution, within the data as well, which are everything that the client can do compared to the benchmark and they can see comparison with their competitors. All of these are real time data that is available to this client in depth and there is an indicator of how much they use the TOTVS solution within the tools and all the options that we have, the framework of tools that we have we have, We have the take rate from the TOTVS client that they invest in TOTVS every year, comparing to their revenue that we use on a daily basis, it is used a lot within our company. It gives the sales force room to advance and using new solutions, they have our product, our solutions that they don't have a lot of value in monetary ways. So we have room for us to advance in this client's take rate, the more we advance in the new dimensions, the higher our take rate. When we only had management solutions, we were limited to a specific take up rate. The more we join our dimensions, then we can provide better solutions to this client. So this is also available for -- to the sales force. And last but not least, the indicator of attach rate, which is the amount of clients that have more than one solution from the TOTVS dimension. More and more, we intend to have this cross-sell between the dimensions, we have the cross-sell between our solutions, for example, somebody that uses us for payroll, but then they use it for capital management. So it's a way for us to measure the cross-sell among the dimensions of TOTVS. So this is already available. The salesperson will know if they have more than one TOTVS solution available, this all becomes to use daily for salespeople, for services or client support, really becomes a data cockpit tool that allows us to be more assertive when we are going to go and sort of attack this client. I think that was it from me. I will pass the floor on to Gustavo, who will be here with you guys. We'll continue with you guys later on.

Good morning guys. First of all, if you've seen me talk in other events. You're going to think I'm a little bit -- if you think that I'm going to speak a little bit slower, you're going to think maybe I'm medicated, but it's not. It's just that I've got some feedback from the translators when I was on stage before. And now I'm going to take it a little bit slower to help them. So we have talking about Gartner and it talks about other clouds for specific purposes, adopting specific proposals, clouds because for you to migrate it has no implications and the value that you have by doing this kind of approach and how you've chosen to do that. And in our case, the TOTVS Cloud is a specific purpose cloud -- and we didn't -- we don't think about load and having a huge service catalog, for cloud for general purposes. We are always focused on bringing this to our products bringing the best possible solution, doesn't matter what mode he's working on or maybe even with IAS, our generic infrastructure service is, in general, connected to some specific service from one of our clients. They have [indiscernible] solution, a verticalized solution and then they need to integrate with the legacy products, which are the solution they have there. That can be a complexity for him to get this and hire this from another cloud. So they can have this from us. Another important thing to tell you is that in Brazil, such a big country, the Telecom's theme is very relevant, very important. It can make it not viable the adoption of cloud services in some regions. So we are growing our availability areas, but it has other collateral aspects. There are positives to SSL. It mitigates risks in and other problems, of course, because we have some clients in this availability zones and it gives us a much higher capacity when -- if we need it and something else I want to share with you, Dennis has just commented on that. We have the satisfaction that we've reached a very good point that we've grown 3x in the last 3 years. And that's fruit of the characteristics we told you about. Why have we had this representativeness, this relevance in the client's agenda. Because of all these characteristics. The first one I'd like to mention when they hire a cloud service, they talk about service levels for infrastructure. We always deal with that as service levels from that. It's your system on working. Doesn't matter if it's a component of infrastructure or a component of software that we are offering you. But an interesting characteristic of this issue that our cloud has a specific purpose. Also, we have gains -- gain in productivity as we have a specific purpose, we automate, we offer experiences that will be easier for him to manage, and we do this to support them the way they actually need it. So thinking about real cases of what we see in migration cases. The client showing us their growth, grow at 30%, 40%. And also cost reduction. They've had huge cost reduction when they moved over to our cloud services. Something else that I wanted to comment at you. I didn't mention this when I had our first talk, we talked about change in the clients' experience. We're also doing that in our back stage. We're also doing it from our end. So here I bring you some numbers from an initiative that we called digital cloud delivery. I got some real cases here for us to have an implementation. It took us initially 21 days now for migration, it used to take 30 days. Now we've been doing it within 5 days all the steps that we were able to make much faster to show them that the service is available to them. And we made this experience simpler without issues, much easier to hire, to really for them to have this from us and also getting a hook from what Apendino just commented. He said that we started this exercise because of cloud. But here, we have some very interesting data. We've got a universe of opportunities that we believe were interesting opportunities to explore, to be explored by our commercial teams to commercialize cloud and the assertiveness rate that we had in this group was 92%, so with those parameters, we use data, telemetry. What we have from knowledge from our client, it has provided so many new options to our clients, and we've been able to have a 92% rate of assertiveness and to bring many more businesses to us. [indiscernible] has already mentioned, but we've been using everything that we have to look at attributes, the health of our applications, how the system is performing at the client's company and to allow us to explore the opportunities and share this with the clients and talking over with the clients. Another theme that was mentioned, we have intensified this [indiscernible]. Why does that don't make so much sense to us. It has an obvious connection with extension of functionalities from the RPs, all our management problems have transactions there and financial transactions. But definitely, a lot of them have this level of detail, a more professionalized professional level. And we are practicing that we just planned doing this with integration. We have been thinking about all the issues. We have also clients in another RP basis. So we're not just talking about options that we can explore in the TOTVS basis. Also, in basis of other products from market RP. In TOTVS, the initial advantage is integration with prepared models for integration to happen very simply, very fluidly without issues. When we are talking about TOTVS, we're talking about using Gesplan as well. Another thing that I mentioned to you guys, the HR and human capital agenda, human experience that we've been using XM. I've brought you some examples to share with you of offers that are being launched, taken on the synergy of what we have in the transaction and what we are bringing as proposals for humans of course, and they are complementing that with acquisitions we made and partnerships we made to strengthen our portfolio. Something interesting that I would like to bring on to your attention, especially as investors on the company, and we've brought a very interesting design for our Feedz because we've been able to make products from the TOTVS portfolio and also from the Feedz portfolio with the same look and feel to the client. And I go to a client that used to be Feedz, and I sell another module that has been produced by TOTVS and he is using that product he is going to have a Feedz. And the same thing goes the other way around. When I sell a Feedz solution to originally TOTVS client, he is going to have the [indiscernible] look and feel of Feedz. We then have the clients with better understanding and they are happier. So we continue with the strategy of strengthening the huge potential that we have from transactional area. And we have the same competitive position when we talk about HXM. So we are continuously looking with product teams. In some agendas, they are permanent. We are always talking about this. So functional evolution deepening within the functional capacity from the product. So it's a continuing agenda doing the modernization, so of course, adopting new assets, new characteristics that are aligned with what we have in the market, but also we are revitalizing this and aggregating technology, new technology to products that are already and have been available to our clients for a long time. Also talking about customer success. The more participation we have from SaaS Solutions and PIS models within our portfolio, we can substitute the approach for more traditional, more reactive to a more customer success approach. And then we can approach them, and we can ensure that they use our new solutions, they are not just reacting to some doubt or some event that we've had. All of this helps us to have very interesting indicators -- if we look at our 4 last months, we've grown 13 points in our INPS. And last but not least, we're going to share with you what we've been doing towards data regarding data enforcing not only with the clients, but every time that I'm able to talk about this all the work that Apendino mentioned, that I've mentioned in cloud, and all the possible solutions that we can offer to the clients, they are part of a big journey. We have the transactional data that we've been working on. We can get that data and work on them with the tools that we have available to the correlations and transform that into relevant things to our business. So this journey translates that data can be in the client's house. It can be in one of our applications. It can be a third party and the context of the event, if we can share this and whether by using AI or big data, change that into a business model. On our left-hand side, I have an example that I shared with the clients. I don't know if it's got video. Are they showing video? Well, here, it's still conceptual. We are going to have that in different formats in the products. But the idea is for you to have it into any part of a solution, you have insights and seems relating to the context that we have and also have an action. And I had a slide related to this and what can we do for management and any dimension of the company associated should that insight have had. All the products are going to have similar characteristics according to the identity and of course, respecting the different features that we have in each of them. So my time is up and for me, it was a slower model. I hope I helped the translators. Thank you very much.

What is our value in terms of segmentation? So we're working on these products for them to have, first of all, the best software that you -- for that segment of the economy you work in. And the second thing is the distribution that we -- today is specialized and with these changes how the customer sees us. So if you're a building company, you're going to talk somebody who works in a company, if it's an industry, how do you control this? And if it's a distributor, how do you improve the stock? And this is the work that we've been doing. They talked about this a little bit, but it is looking at when the companies compare our products with other software houses and so just they find somebody that sales. The sales [Technical Difficulty] and they can see the language that he is communicating. And the second thing is we have a product for practically all the different segments of the economy, and our products, I'm going to bring one of the segments over here and then we want to talk about this individually. What is segmentation for us? Why do we talk about segmentation? So I'm going to bring you a case of logistics. So this is important information. So we're talking a lot about cross-selling. But there are still many opportunities. So 59% of our customers use more than one solution, right? But more than 56 customers don't use more than 3 solutions though we still have lots of opportunities to enhance the number of customers because we know that our customers grow. So they start with an industry, and they start with the distribution, then they see an opportunity to start producing the product and then he shows -- he makes up an industry and then there's the retail and then it's 2, 3, 4 and then there is an importer, and it's really, really very common. And we have the small- and medium-sized companies who are our customers and entrepreneurs are created. So you have the time to find new opportunities and having software that helps the company in this journey is definitely much easier. And every time there is an opportunity or an idea for a business, you have to buy things again and start from scratch. Normally, they're able to do this in the products. And we, as a company, we've already talked about this, we've already thought about it in our P&P department, making the customer being able to expand and use his product. Okay. So now we have an example of what is a specialized product? So over here, I have the logistics suite. We have invested a lot in it over the last few years. And the proposal is to allow any company that is a producer, an intermediate, a distributor, an importer whatever they are, they are connected to the same platform. So they are able to -- in the first part, they are able to manage the TMS and something that is not stuck to the RP. So if he has processes and RP that generates a product and -- in WMS. They want to do it differently, and there is a distribution according to different places and being able to work with the marketplace in an integrated manner, not having to download it and put this file in other place if you see how much that delivery costs and then you signalize this in your network and in a third-party network, you can do this integrated manner. You want to know where the products are. You're able to integrate with thousands of platforms, monitoring of trucks or whatever and then this should come to this place, and we have deliveries in the same place. So how do we do that? We wanted to create a platform that is uncoupled in terms of management to be able to connect with the same number of scenarios, and we started specializing segments. When we talk about medication, it is completely different from distributor, the concept is the same, [indiscernible] going to be able to do all of this but the way that you configure it, the way that you control it, the way that you [ traction ], the product changes and our solutions allow you to do that. They control the norms, if there are any norms, the control of how to do it, the documentation, the best route, the route of a heavier or lighter product. All of this is connected and -- connected with our products, and they're going to get to the 4.0 logistics. So what does this allow? It allows us to not have great logistics, where they're going to spend a lot of energy to do something that has a big value and it could be 7% to 15% depending on where you are. And it's not the -- or in your company. This is part of logistics, and this is where you spend part of your energy. And the product is exactly for you to structure and something else that we did. This is a software that helps in the management of the order of arrival of the trucks and where the priority is, extremely depth, really specialized because those who have great logistics operations, it makes a big difference. And it cannot be a spreadsheet or common sense, no, it's how are you able to organize yourself internally to be able to address logistics in a faster way with the lowest cost and in a more efficient manner. We talked a lot about AI. And if you have time, I suggest you go to our stand or AI stand. It's right here next to the exit. So you can see -- so AI for us is not going to be the replacement of our users or customers, no. It's going to be an entity or a person or a service. It is going to allow the customer to make the decisions. And AI is going to make a decision for the product to identify that the need to buy something and I'm doing that. But it's going to give you all of the arguments that you need to have and checking if you're going to really buy this product. And we call this the digital personal adviser. So the strategy is if I'm going to work with Brazilian companies in Brazil and Latin America, now we are enhancing to the digital area. And this is going to be applied where we've worked with different examples. And therefore, we have control in terms of logistics and revenues, and we're looking at optimization of routes of transport. And we know this is a process that sometimes can have some preference or it's just too much work you can do in a simpler way and AI, identify the problems, identify that you should send it through this route, or the route that you choose is not the best one, always in the way that it can support, it can be supportive. So the final word is going to come for the user, of course. But there's all of the thinking behind that. So you have support for your decision. And finally, for me, this is very important. So how can we do all of this? Or how have we done this? We have worked on the stability of the product. And our customers, they need a stable products. A software product that is unstable or has bugs, it really gets in the way of the growth of your company and when you're going to do additional revenues, you're going to [Technical Difficulty] customer, your product is not ready. So we have done generic work trying to reduce the quantity of bugs in the maintenance that comes. So the graph that I'm showing you is what we got to in 2022. We have 40% less than what we have compared to 2020. And remember that during this period with [ acquisitions ] and the strategy of getting things together so the complexity of the product as a whole. We have done important work trying to reduce the incidences of bugs, problems that, that customers talked about. So this is intelligent rationalization, and we spend PND with bugs and solutions that provide more value to the customers. So when customers are with TOTVS, they will know they will have a more stable product, they will support the operations and all the things that generate value to them. We can also use our [ PMD ] intelligence without having to add things to the company all the time, generating addition. So that's it. Thank you very much.

Good afternoon, everyone. I wanted to talk about -- whenever I find it possible, I'd like to start with what we talked about last. So I have the opportunity of talking to -- at our latest release of our results. And it was a channel that was different. It was online. It's not this great stage, 31 meters squared, 101 feet or 27 somersaults given by [indiscernible]. I want to see how he does that. At that moment, we were able to share with you our change and our evolution in this strategy of definitively putting RD at the center of our strategy but also the place -- the place where we would continue to build this dimension and we continue to expand this dimension because in RD, we found not only a basis of technology or development and technology and an engineering team with very high performance, the benchmarking of the industry, but the model of the market has eased a lot and 2 products that are part of CRM and in fact leaders in the marketing, which is RD station and CRM. And since that conversation, that was 3.5 months ago, we have been working a lot on the family, and the family has been expanding. So first of all with Tallos, which is a conversation solution. It's also been presenting [Technical Difficulty] so it offers all of the resources necessary for you to conduct your journey through WhatsApp and conversations. And then we have a partnership, this is for Shopify in the world, which is the highest commerce platform in the planet, and they made this partnership with us. So this gives us a distribution capacity, the very intense and absolute here in Brazil. We also acquired Lexos, which is a very important component in our e-commerce strategy. So it brings an integration with the marketplace. So this has a lot of evolution, and we have very strong players such as [indiscernible] and today, practically all of [Technical Difficulty] have some sort of modality available with products in the marketplace. So Lexos [Technical Difficulty] our e-commerce suite, but also the capacity of impacting the exposure of the products from all our customers directly in our RD. So it's a very important technology addition for us. And Exact Sales [Technical Difficulty] also an absolute [Technical Difficulty] in the capital sales engagement schedules either to adopt technology [Technical Difficulty] journey of a salesperson when they need a contact. And when you have algorithms that buy the best product [Technical Difficulty] technology that is going to help you and also incorporating not only with the existing solutions as we see in the last quarter, bringing [indiscernible] 100 million profiles not only in terms of transaction but structured in the web and also with our RD. So off-line transactions, so it's the first platform in the market that is able to give you intelligence in the online and offline journey with the volume that we have according to the channels we have. And [Technical Difficulty] that brought the capacity of not talking about AI in the ING or in the future, things that we are planning and commercializing this point that helps us in our journey and especially in the journey of our customers. And besides that, we also started incorporating this new business performance in our team with the expertise it has, it's outbound the corporate sales, more complex sales, and it's also a strong work in connection with this ecosystem of business performance for everybody to continue working and also the connection of the ecosystem of [indiscernible]. We're talking about the customers or our franchises. And I'm going to try to talk about each one of them very quickly, important points of where they position themselves and the important points of each of these capabilities. So besides the acquisitions in the last 3 months we did, for example, the launching of the Advanced plan, and over here, it's very important for us to talk about the importance of the business performance strategy. So not only because of the representation or greatest source of revenue, it's the best results we hear, but it also learning process [Technical Difficulty] system and the launching of Advanced brought us not only great things for the product, but also gave us greater capacity for our performance to get leads but your capacity to generate campaigns that follow up the growth and maturity of our customers. So our customers were thinking about asking for this and as Advanced was launched, the difficulty we have even to pay large customers, it became a new avenue of growth for us. But besides Advanced, Shopify also brings an addition to our portfolio to the capacity of fleet to the market [ with the product ] that is a benchmark product in global industry but it also brought 120,000 customers from Shopify that are an immediate target for sales or upselling all of our performance. Lexos is integrating very strongly with our customers, and I put the number over here, 47%. 47% is the average growth that we see in the Lexos customers after they adopt our platform. Later on, I'm going to reinforce what we want with all of this and one of the major [Technical Difficulty] is to grow, making our customers every time we see a capability where the success factor is the growth of our customers, this is according to our strategies. Tallos is mainly what we're most proud of in terms of growth and adherence to the customers and doing business such as conversations through WhatsApp, this is a [indiscernible]. So all the companies are trying to find solutions like this and Tallos is a very important piece in our creation and construction. And these are the engagements, and this is -- when we talk about AI and this is definitely for us to go into -- go into the space of AI. So recently, we [indiscernible] the road map that we have, and this is with the coming of Exact. We're going to be able to use engines with our own technology, we're going to be able to accelerate this sort of thing. And we have a stand just outside where you can see a little bit more of each one of this where you can see an integrated journey from the moment that the client needs to understand more and know more about the clients to the e-commerce experience. And now that they were saying how do I create traffic? How do I do it and integrate the journey? And how can you do that? And on one hand, we are expanding our solution portfolio. It should be a [ piano ]. I've started to make it very clear that we are still in the building process. This is very intense, and we had a very important portfolio with many leaders in each category. It's -- but our project is to go beyond that. We also have a capacity of creating new capabilities. So we are moving from single to products. We are evolving from a company that is a single ICP, from a client that makes the decision-maker that has the pains that makes us have better cycles from many GCPs. We are moving from a unique model from SaaS [ from recurrence ] and now to explore many ways and the take rate process and also for messaging. We are evolving from a go-to-market model, and we practice what to talk to our multiple go-to-market models to capture everything. From agencies -- 2,200 agencies that are agnostic where we have a very strong value issue for many models, channel models. And many of you have asked about that and have wanted to know how can we mix the secret sauce of RMB, an agile company with a lot of technology within the ecosystem with the secret sauce from TOTVS that has the flexibility and that allows you to get market share, take rate from the client retention, capture the growth more than any other category and be resilient. When you have this level of amplitude, this is amazing. And I want to tell you all -- say hi to all of you because you're all here, it's a huge challenge that we have to build this new company. But this will allow us to have retention, resilience that is huge. There's huge capacity. I've skipped magic when I talked about the capabilities because I wanted to pause for a moment and show you some things. I think hardly you've gone to a technology event where they didn't talk about AI. And of course, we are converging in terms of AI technology, where we have message use. We have a lot of computing power. But what's missing and what's going to be the core of our strategy for the next few months. And of course, not just that, but for the short term, for the long term to bring applied AI scenarios. So once the novelty has gone, they're surprised, and the same way that we build the software that we did that in the journey of the marketing professional will populate each moment of this journey, when you need to understand and create the flow and the best promotion, you're going to have AI agents, helping you in this space. To have AI agents so that every person, every function can be scalable so that each function can produce more. I brought you an example that is risky, that it's live. I was able to show you before I uploaded it and it worked. We are going to replicate such a scenario. What have we done? The magic solution is on top of many AI engines. If we use just ChatGPT, I'm sorry if I'm repetitive here. But how does it work the biggest part of combination of learning engines and so on? So if we are saying, for example, rain always falls and -- the rain in Spain always falls in the plains. We know that, it's understandable. We are doing the opportunity for you to have full control -- after control. Can you tell him what he needs to learn? So you have an experience of uploads, you click on the files you want and then that's what you have to do. So 3 words -- 3 -- you have an icon, this interaction with this agent can be done in many ways. And we can show you here in a way that it's done for the chat. And once it's defined, it's -- what's it going to look like. You're going to be an agent from the TOTVS Investment Council. Some answers you can provide, they are ready and they are standard. And here, you tell them what you're going to do for training. And this training is where you are going to choose what you want to input. So you just input it. You move on from a file within your computer. We got just 2 files here. The first one was our last resource, our involving file. And the second one was an audio that I sent yesterday, I'm going to tell you what the sentence was. You can take a picture of this QR code, it's live, it's working. Okay. All the questions that you've always wanted to ask Sergio and for some reason, he didn't answer to you, you can -- they will be asked by the bot. Any idea what was the audio I sent? And I swear it was just one audio, just one sentence. Every question, any question about future please say that we give no guidance. So here you're going to see this experience, please test it, ask questions what was the R&R from the last 3 master. What was the profit? What was the performance? What was the Techfin performance? And you're going to see within one document, we associate every available mechanism within the internet but customized for an applied scenario. This was an adaptation. What was the scenario -- applied scenario that they were going to be selling there? People specialized in sales or presales or SDR. When you talk to a specialist, there is a bottleneck. They will update a lot of things. They will then be translated and they can answer for that person. Where is [indiscernible]? Is there around? I think he's there making things look. He is from Florianópolis. He only trains the engine via audio. It can already answer because he is from there and he's speaking the same way that he does. So this kind of answers are coming from the engine work and very easily it can be connected to websites, and probably the next Q&A you have will be -- and answered by the engine. So quickly to finish off what are we doing as far as integration? The focus is a big part of the effort we are making to build all of this, all these capabilities. There's a lot of effort for integration. We are seeking strong integration intra business dimension performance, a huge focus on understanding how we can have synergy for the go-to-market strategy with many opportunities in the many ICPs we have. We are bringing a huge expert in research and development for efficiency, for monitoring each one of the stages and with people of engineering and synergy and governance, huge governance with the R&D team. We're going to have billing and centralized -- within some of these capabilities, how can we promote the expansion of the -- expansion of the R&D system for us and for our clients? They are here, the biggest agencies we have in the R&D system, and they're all connected. They are all incentivised to lead this portfolio with the same success we've had with R&D station markets. We are also invested in integration with management -- system management. We are starting this and these are points that we already have and an integration with sales and distribution, and we have all the incentives normalize between our internal management teams for sales and distribution of the projects. And we have more integration with control of our financial results and to manage this to have -- to be able to predict to have predictability. And we end up running into many opportunities of synergy of technology and products. Since starting with a centralized agreement, a company that runs SaaS added between TAIL, R&D, TOTVS. I think we are one of the biggest, if not the biggest S&V client from Google. And the best cloud. It's going to be benefited very quickly in a very short term. We have a solution exchange that were done as a main player within the business performance evolution. The electronic signature engines that we have that can help this management issues and everything is happening very organically, very quickly. And we do want to create more than just the biggest ecosystem from the categories of solutions that we have for marketing, for sales, e-commerce. We want to become the biggest platform. And what we're going to have waiting for us to -- from [indiscernible] that has such a great result such as this. We are always going to have 3 things that will be present in everything that we do. We have an inheritance that is very clear from RD. Every technology part to every solution will come connected to a native effort that we have for education, more than a marketing automation solution. R&D educated the country in digital marketing. Exact Sales is the same thing. Tallos is the same thing for data sciences, applied to marketing. We're always going to have an effort connected to this for the ecosystem. We are not exclusive for SMB. But our focus is SMB, small and medium enterprise SMB. And in the widest spend, all our pricing strategy, our product strategy has to do with education, with social abilities. Can I have a quick approval cycle we fix and a specific problem that somebody will have, and they are making decisions, they are decision makers. We have quick cycles of interaction, sales and pipelines. And more importantly, all the solutions have a direct impact in the technologies. We have very good technology, good products, but if that doesn't impact on the result of our clients, we won't get that glue that we want for what we want to build. And the result of that, guys, I'll leave it to you as a reflection, it's a unit of business to being able to deliver very positive results, not just for growth for recurring revenue but projected revenue from the first trimester, but a margin of contribution that is very similar to very well-established businesses. So there is a growth machine of -- with all the proof that we need to show. We are going to have a very relevant dimension. Any comparison of these numbers with their peers, the value is huge. And now I will call Eduardo to this to talk about Fintechs.

Today, we're going to talk about Techfin Fintechs. The Techfin has 2 turbines. So we have the supplier Techfin and we're going to say how the business is today. I'm going to talk about the future part of it for what has been approved by the Central Bank. And it's an essential that will get us closer to this future. So as you know, we have a representation of the supplier business with a very strong business. There a lot of focus. We found our niche, and we built an invaluable proposal, and we're going to build strategy and how we're going to do that or the Techfin growth, what is focused right now to a supplier -- a turbine supplier using the final model. We're going to talk -- the funding model. I'm going to talk a lot about that, making the model more intelligent just-in-time model. For you who know that funding model historically, it has a dynamic where you stock funding them to distribute it, to create -- this mechanism has an inefficiency model, and we start designing this new model. We are building a much more efficient model, which we are calling just in time, where we're going to have a lot of funding available and then we will be called on demand, and that's the calling optimization of the funding model, and besides that and even more important, it's preserving the exceptional track record of the company. So here, there is a clarity -- strategical clarity that is very strong. If necessary, the company will grow less, but it will prioritize its excellent track record with a very low loss, which we always talk about. The lowest loss in the company when we compare segments, and this will strengthen what to be done in the presence of the supply. In parallel, a Techfin turbine -- we're going to have 2 things happening, what we're calling foundation from approval after CAT, we got the permission with exchange with Itau that allowed us to accelerate as much as possible that the sustainability tripod from Techfin. Together with the largest banks, [indiscernible] mentioned, and this is for the building of a portfolio and it has to be a toothbrush portfolio, something that the customer uses 3 times a day, so we're going to talk about frequency and this expansion of the portfolio is to be supported by 2 fundamental pillars; funding, and we're going to explain a little bit of the just-in-time model that I just talked about. And what we understand, which is the jewel of the crown, which is the secret sauce, which is the first model of credit in [indiscernible] based on [indiscernible]. So this is data that we have together with our partner, Itau, it's the data that allows us to make discussions, but it's data that nobody else has. So we are accelerating the data agenda, and we also changed the structure, and we put the data science from the tech [ firm ] to the new credit area. We received a partner from the bank, and we understood that the focus along to make a [ science ]. So prepare the growth according to these 3 pillars, that's what we've called the [indiscernible] as Mala said, considering profitability starting to look at sub synergies, together with the suppliers in terms of the structure, and we're sharing this with the some teams talking about the financial, the legal area, human resources, but -- about the business. We're beginning to collaborate. We're having exchange of information between the product areas, the credit areas and commercial destinations, thinking about new distribution channels for these conversations. And these are happening as we speak. So these are important places of synergies, so we don't have unnecessary redundant factors being created in the company. And we're going to talk a little bit about the model, the secret sauce, which is on the next slide. Right. So, going into the view of the future. So we noted that there's going to be growth supplier, and that is basically according to an efficient funding model and also due to distribution and the exchange of information that we are promoting in terms of products. And naturally, because of the proportion of the 2 turbines, greater growth from the turbine JV because there is a challenge to looking at everything that we saw for -- there's a of creating a portfolio that fits and that addresses all of the needs of the financial services of all the customers from TOTVS. Remember that the supplier has a lot of focus according to the niche. It's a player, and we're going to amp to this proposal that with a portfolio that addresses all of the TOTVS customers, not only in terms of credit, but also in terms of cash management on other [indiscernible] products. So the growth is going to be [indiscernible] by the expansion of the portfolio. And in our reading, you have 2 variables. You have whether it's extremely simplified. Dennis talked about B2C. I'm going to talk about this tomorrow. So naturally, financial services and in other markets, you have the adoption of certain technologies. First in B2C. Normally, it's a young population, and this adoption is going to B2B. And in B2B, as we saw in other situations, it's according to the pyramid when it comes to the middle of the pyramid. So what is the key secret over the obsession that we are going to have in JV. It's to simplify the user's experience. So quick money and a few clicks and then embedded finance with every touch point that we have in the management software. So this is something else we're going to have. We're going to have the context for an offer, and this is going to be extremely simple. And the second fundamental variable is the relevance. So we're going to talk through the data for you to have the context and to know the perfect timing of offering in that touch point of the management we offer that is compatible with what the management data shows. And this is going to be based on RP credit. We brought Itau [indiscernible] has been in the market for many years, and we're not going to improvise our partners we're bringing in and with a lot of experience, a company with a lot of experience. They also have the or operational team, and they're going to work with this experience and this is the [indiscernible] data that I was talking about. So over here, we have to remember that what is beautiful in Brazil and around the world is the combination -- the terrific combination of expertise to the agility, passion, the lightness of the total technology intelligence that is going to pop relevance that will result in increased quality, and that is that we get through the management of data and the expertise. I talked about the touch points. So we work together with Gustavo and Marcelo's team. And yesterday, we spent a long time talking about this and touch points, the interactions of the customer navigating and we're going to generate insights of that customer. This insight is going to [indiscernible]. So really exploring these touch points that the customer manages and they recognize this to TOTVS. And what we see in this model with all of the expertise that will have credit strength of the funding of the bank. So we're going to talk about abundance. We're going to talk about just in time about the competitiveness of funding, expertise in terms of products, and we talk about the digital account. So we're not reinventing the wheel. We have differentials in our accounts but to support Pillar banking as a service behind it. It comes from with the experts. And finally, maybe the most important part in this whole thing. It's easy to loan money. It's difficult to get paid back. So I think the main expertise is the one of risk management, and this is what comes into this new area. So the capital we're having for JV. So what do we want to try and learn with this portfolio with this too fresh portfolio. So we want to get coverage and have the breadth that TOTVS has, have several segments and very internalized frequency as well. I think we talked a lot about credit. We talked about the supplier and the credit naturally as a project, you're not going to fire these days. It's not in every one -- it brings a lot of profitability, but it does not go by itself reps and the frequency that we the main thing is this is a consequence of the portfolio of the U.S. that is extremely simplified and several conversations that we have with the customers, and that's fundamental to whoever gives me the money before, pay more and we'll do it. And with the relevance of the data we obtained this main thing which when we talk about a digital account, our customers have accounts in 4 or 5 banks. And the expectation is that they're going to close these accounts. Now the expectation is to have a lion's share in this relationship, and we're going to create the incentives that are necessary so that the TOTVS customers or the TOTVS suppliers, everybody, in a way to have a translational -- so that the customers will feel the benefits of using the JV for credit and for a transaction. So what is the translation of these concepts in terms of the portfolio? What is the priority that we have, which is called Wave 1 of the [indiscernible]. So that we have -- this is what we call the vision [indiscernible] so first of all it's a digital account. It's genuinely ERM banking or banking, sorry. And what is the differential aspect that the customers realize its integration with [indiscernible] presentation, we're going to bring some of our customers to conciliate into one account just one account. They manage 4 or 5 accounts. So we're going to bring the effect of productivity and efficiency through the integration with RP of the whole transaction made through that account and automatically going to conciliate with RP. And this product is for everyone. Everybody will have the financial model and RP to benefit with the integration feature. [indiscernible] already have [indiscernible] and it has a great market for this, and it's going to be the first cross-selling in our digital account. And it's going to be an ocean across [indiscernible] for us to be able to offer credit. So the digital account actually gives you the movement, and it shows you what can be left as a warranty because you can see the daily movement customer is going through it. This is going to open up opportunity for us to introduce the moving capital and this is what is hired to customer companies, and the choice of B2B credit has to do with the previous slide where we talk about -- when we talk about our credit journey with core business and longer-term business products for manufacturing, customers for manufacturing, which is a great sector inside TOTVS, this is what is going to allow us to navigate on the pyramid and in all the segments that is very representative. And this is TOTVS in Brazil and based on the economy, and we need to have credit for the customers in the service segment. And that's the rationale working -- with the working capital and [indiscernible] credit is a business that we operate well. We have 3 reasons for us to prioritize, we verticalized to priorities. So first of all, we estimate that TOTVS has a system of 10 million out of the 36 million CLTs or people work who work. We have a great influence in this world and then through partnerships. We had a great -- we found a great fit. We did a series of tests -- and we know how to sell and we can also activate a very interesting thing in our portfolio. So more business, and it's also going to be extended. We're going to have a better portfolio. And with the working capital, we're going to expand our portfolio and the management of the portfolio, that's where the national Gustavo talked about this as well before. We are very strong in humans the consigned product is something that we can fit into this other RTP, which is the Human Resources Manager, and we can fit benefit insurance and there's another pool of cross-selling for a second persona. First of the financial manager and then the human resources manager. We're also going to move on to a multi ICT model. Well, portfolio, as I said, naturally [indiscernible] this model is called indirect monetization of data. So they get the consent, they bring the data to the data lake and this is monetized directly through propension models, segmentation models and looking at commercial intelligence and pricing as well. Dennis talked about this and getting to a price per customer that reflects the data that we find in the management model for that customer. And also the different offers. So comparing with [indiscernible] is not the strongest or the fastest, but it was a player that was always in the right time, in the right place, and we want to have what [indiscernible] have inside the area where we make the [indiscernible] We're talking about getting into the business because of this -- now then to leave the customer. So we can look at the operational data and they can understand when sometimes in the credit area, you have to get out before your competitors. And finally, we have the funding intelligence and changes. And why is this a game changer for JV because it brings the funding model, and it's more efficient. It is more abundant and also more competitive. So it's efficient because it's just in time. So it is going to be [indiscernible] and distributive and when you see that it's already stored together with the cost and it's abundant naturally because of the strength of the partners. That's one of the reasons why we're having this marriage [indiscernible] and to be infinite funding implication work and then competitive because it's more competitive with the supplier or the fintechs and other areas of the market. And having said that, we preserve, as I said last year, towards to remember the principle that JV is going to have an autonomy and freedom. So it's not a contract obligation, right? This is a privilege that we have in terms of Itau. It's not an obligation. So this comes up once in a while. And JV can and ensured look for funding in the market. And this is a sacred principle, our relationship with our partners and JV should maximize its financial results, trying to find funding wherever it is a favorable -- or as favorable cost. And finally, here in my reading. I think this is the most important thing. So this is with access to what Itau is going to do with the portfolio. And this is what Dennis said, and we're going to preserve the beauty of the asset-light model, which is light, which is SaaS. And in practice, it supports itself because it has low regulation, and you have an APT license direct credit. This is what the central bank offers, and this is to provide new new things so that the new entrants can get benefits in terms of the new regulation? And also, we're talking about asset life providing the -- or protecting the FDIC model. So we're going to preserve the previous model that the operation ready shows is very high. And the third thing is self-sufficiency and funding. So over here, we have 0, 0 dependency on the management business to provide funding for the operations. So it is self-sufficient and this is a very important point because you're going to have all of the growth necessary without depending on the dimension. So we want to get integrated with the dimension, but we want to have the funding dimension. We want to be integrated to that and then looking at the very low-risk model. So we estimate that about 2% we consider the subordination that we have in the current model and the coverage. So how safe the current portfolio [indiscernible]. And we have the complete portfolio, and this is where the Fintech feed. So this is what we understand. That's one of the differentials and especially the main ones we obtained with the society we have with Itau. [Statements in English on this transcript were spoken by an interpreter present on the live call.]