Good morning, and thank you for waiting. Welcome to the Pet Center Comércio e Participações teleconference, Petz, to talk about results referring to the first quarter of 2022. With us today we have Mr. Sérgio Zimerman, Founder and CEO, Ms. Aline Penna, VP of Finance, Investor Relations, and New Business, and Matheus Nascimento, Senior Manager of Investor Relations and New Business. We'd like to inform you that this event is being recorded and all participants will be only listening to the teleconference during the Petz presentation. After that, we will start a Q and A session. If you wish to send a question to the company, we would like to ask you to send it via chat. For those listening via telephone, if you need any assistance during this meeting, please request the help for an operator by dialing star zero. This event is also being streamed online via webcast, and you can access it on www.ri.petz.com.br where you will find available the presentation we'll be showing. This event will be available right after it is ended, and all participants can send questions via website to Petz. They will be answered after the end of the conference by members of the investor relations team. We would like to clarify that statements contained in this meeting related to business forecasts, financial results, and targets are mere projections based on the expectations of the management and based on information that Petz has available. Any future remarks cannot be taken as a guarantee of certainty. They are premises because they refer to future events, so they depend on circumstances that may or may not occur. Investors and analysts must understand that overall conditions of the industry and other operational factors can affect future results from Petz and may not lead to results that may or may not differ from the projections here presented. Now I would like to hand the floor to Mr. Sérgio Zimerman, CEO of Petz. He will start the presentation today. Mr. Zimerman, the floor is yours. Thank you very much, and good morning to all of us watching. It's a pleasure to share information with all of you and share the strategies of Petz with all of you. Before we start the presentation, I have a few words to say. In other presentations, I have been saying that Petz is a company that has a double resiliency because first we are resilient in the segment we work on or the industry, and we have a second level of resilience of the company inside the segment. For another quarter, we have confirmed this statement. The pet segment truly has a better performance than the average of the retail, and Petz as a company is performing better than our competitors. Another important highlight during this presentation is that we have various topics that are important. Growth is important, profitability is important, innovation, M&As, all these elements are important. For us, what guides us, we use balance. We don't value just one of these characteristics and favor it and jeopardizing others. We try to balance growth, a strong growth that is at the same time sustainable, working with margins that can fill the growth and the M&A but in a controlled fashion. Innovation can also happen, but everything in a pace that can be absorbed by our results. This is the overall characteristic of how we have been leading Petz in terms of management. Now we're gonna start the presentation. I have some words to say about the first quarter, of course. We have had the opportunity of announcing the acquisition of Petix, which I would like to reinforce is a completely innovative and strategic model that Petix brings as a manufacturer of hygiene pads. They have a huge differentiator in comparison to other players on the same segment. They have a strategic presence abroad, and that brings synergies with Zee.Dog. There is a very strategic issue when it comes to the manufacturing of Zee.Dog pads that today are imported from China. We are now acquiring the correct machines so we can manufacture them in Brazil and we stop losing money on the sea because transportation costs are becoming more relevant, as we all know. Again, Petix, we are waiting for the CADE approval. Our expectation is in the coming weeks, this matter will be completely solved by the CADE, and we can truly start reaping the benefits from this acquisition. Zee.Dog was concluded in the end of December, so this was the first quarter in which we had Zee.Dog results being reported. What I can say is that things are happening with a very positive line in alignment with what we believe and with what we have presented in the Zee.Dog investment thesis. I would like to say that the figures synergies will start showing its first effect in the second quarter, with an expectation of this being concluded in the half of 2023. We didn't have an expectation for the first quarter to bring any results in terms of the synergies with Zee.Dog. What Zee.Dog has brought in terms of pressure on the overall results is completely expected. It's everything according to plan. I have been emphasizing that our priority is integrating or conducting the integration process in a qualitative fashion, doing it the proper way. We cannot destroy the reason why we have acquired all of the companies. I'd like to remind you that we acquired these companies because they were doing something different from us and because we admired the founders of these companies. They are brilliant people who did an exceptional job within the value propositions that they brought to their businesses. We want to preserve and bring scale to the mindset of these founders. Basically, we have two works in terms of integration. We have the work related to accounting, finance, and compliance. Let's say the more, the part of the business that's not so flexible, there's not much room for negotiation here. We are putting great efforts in making this integration happen the best possible way. We have another part of the integration process, which are the differentiators. We are being as cautious as possible so as not to compromise the competitive advantages that these companies have created. In that sense, we have been very successful. I will give you more details about how this process is being carried out. We also had the first committee of the acquired companies. It was a brainstorming environment. We are starting to see all the connections that exist among them. Regarding health or the health vertical, this is a focus for this year. We will continue to understand the laboratory business more and more, and we are planning the pilot for the health insurance plan. Considering our expansion plan, news could not have been better. We are announcing a new record level with 42 new openings in the past 12 months. It's a new record for us, and it's a record of openings in the first quarter as well. We are about to turn 20 years, and we have never achieved that level in 20 years. We opened 10 new stores only in the first quarter. It's also worth highlighting the complexity of this expansion plan, considering the geographic characteristics of the plan. 42 openings is a good number in itself, but it's an even better result when we consider that we opened 42 new stores in 16 different states. We have a very solid national expansion ability, and we are present in 19 different states today. What is a great factor for our expansion plan is that the NPS levels continue to be at very high standards with very low differences between regions, which again, makes us comfortable to know that we are on the right track when it comes to our expansion plan. A reminder about the one-stop shop proposal. This month, I would like to highlight our Petz blog. I think that very few company blogs in Brazil can have this privilege. We have more than 7 million monthly visits on our blog, and this is a remarkable number. When it comes to organic traffic. We are integrating more how we can generate this traffic that is based on a lot of technical knowledge, especially from the Seres team. They have a very clear understanding. They're able to bring solutions to questions that pet owners might have. Even Google is now recognizing that our blog is the best alternative for any questions that are posed on Google by pet owners. Our content part of the business is doing very well as well. Just an update on inflation. I know that this is a topic that affects everyone in Brazil. I would even say that it affects the whole world. What we can say is that the pressure coming from the inflation rate is a reality, and there has been a slight deceleration with some evidence of stabilization, but still at very high levels. We have some stability, but we are still at very high levels. We hope to see some decrease in these numbers in the coming months. These numbers are still very significant. We still have an issue of the impact on the supply chain. We barely solved the COVID issue. Now we have the war issue and other issues in China. Of course, that all these elements contribute to a higher inflation pressure. We have made the correct move when we did the follow-on in the end of 2021 because that put us in a very important competitive position. Because it allows us to support our expansion plan with the resources that came from the follow-on. At the same time, we have the financial strength to deal with any issue that might arise from the inflation rate. Like issues with price increases or if we have to take more stock, if we have any issues in the supply chain to prevent us from suffering from more problems with supply. Having more capital in a moment like this makes a huge difference. I would like to reinforce that the follow-on that we did in the end of last year was a very positive strategic movement that generated a lot of value for the company. There are some very interesting factors regarding the mitigation of these effects. First, I would like to make clear, you can see that in our margins, we have been able to pass on price increases, so the pressure that suppliers are bringing is being transferred. Through our program called My Offers, we are improving the perception that customers have on price. Because prices are increasing, but we can improve the price perception by giving customized offers to consumers that use our app. Our NPS regarding to price perception is at the best historical levels ever, even with the high inflation rate. That shows that we have been able to work with this difficult scenario. When it comes to expenses, we have been able to become more efficient, especially in the digital channel that also helps mitigate effects from the inflation. When it comes to CapEx, we are obsessed with productivity. We are obsessed with knowing how far we can go with the same CapEx without bringing problems to the experience or to sales. We have a very strong effort happening inside the company, so we can optimize the expansion that we have been carrying on with our stores. Just to give you an update on the schedule, I talked that the three priorities for this year would be integration, our expansion plan, and the expansion of the offer of services that we have. Now a quick update on integration. I would like to highlight PIS, which is Petz Innovation Studio, or PIS. This is the only brand house in the pet segment in the world. We don't see that in any other retailer in the world. We can say that this is the first real effect coming from the Zee.Dog acquisition. It's a very strong integration from our Petz team with the Zee.Dog team, working in a single platform and thinking about the company as a single company today. We have different targets for this. These targets are helping us differentiate ourselves. We are no longer a common retailer. We are a retailer that offer not only exclusive products, but especially we are a retailer that offer products that have a differentiator, a product that you cannot find anywhere else, not even in terms of brand or in terms of design. This mindset of engaging consumers and differentiating ourselves so we become a community around this brand, which is the spirit that Zee.Dog has created. This effect is being expanded now to the management of all our brands, and we are very happy to see how fast this is actually becoming a reality. We're very happy to see how this is evolving in a faster pace, even faster than we had anticipated before. This is one example of the use of this platform, when we launch a new product. When we launch a new product, we have integrated communication effort, thinking about the different channels that we have, physical and digital. Social media have 100% proprietary content, and we are very worried about the visual communication that we use with proprietary image only. We are truly differentiating ourselves from the rest of the market, and that reinforces that our challenge is not to be a common retailer, even if we use omnichannel as an efficiency factor. We understand that this is not a differentiator that will last forever. Omnichannel is a differentiator that we have now. We invest a lot on our ecosystem. We invest a lot on content, on design and innovation, and the ecosystem, of course, that we are building. Highlighting our brand positioning, like I said before, many times we would offer the best value for your money. With our Petz brands, there was no concern about bringing innovation, and that was what was changed with the mindset of Zee.Dog. Just to give you an update, the LTM for the Petz brand has reached BRL 80 million, and it represents around 40% growth year-over-year, which is a very relevant growth for the brand. Here we're talking only about the Petz brand. Another interesting piece of data is that for the 25 categories where we are present with more than 300 SKUs, the share of the Petz brand products in these categories are a little bit above 12%. Consumers are really adhering to these new brands. Talking about our expansion plan now. Like I said in the beginning, 42 new openings in the last 12 months. I would like to highlight that out of the 10 openings we did in the first quarter, a record level, seven of them were located outside the state of São Paulo. Recently, I was reviewing these numbers a few weeks ago, and the revenue coming from the state of São Paulo was smaller than the revenue coming from other states. Clearly, we are at an accelerated pace of growing our national presence. For the Seres Veterinary Center, we opened a new hospital in Brasília, the first veterinary hospital in Brasília, a very important market for us. We have almost 140 veterinary centers and 15 hospitals in 10 different states. We are building the infrastructure, we are ready to take the next steps regarding our laboratory services and our health insurance plan. Regarding the expansion of our service offer, in the last call, I mentioned that we have new five VP positions. Four are already occupied. One is a VP for services that will integrate Seres, grooming services, Cão Cidadão, and all new services of the ecosystems. We are currently hiring for this VP position, so we have a full team in the coming weeks. Talking about clinics and hospitals, it's being expanded for labs and the pet health plan, like I mentioned before. We can move on. Talking about ESG, we have almost 60,000 pets adopted, and very important news is that 32% growth in comparison to the first quarter of 2021 when it comes to the level of adoptions. Many times we see it on the media and maybe we hear it in other countries that the number of adoptions grew a lot during the pandemic, and that then there was a deceleration. That might be true for the market as a whole, but for our network is different. We are continue to invest in our adoption program, so it becomes better, so we have a better integration with our stores. We are investing on the digital channel to make the life of adopting pet owners easier, and that has been leading us to these results. We are the largest adoption platform in Brazil by far, for us, this continues to be a strategic movement for the company as a whole. Let's remember that 2/3 of the adopt pets are cats and 1/3 is dog, which reinforces that cats are growing more than any other type of pet in the Brazilian market. Still talking about ESG, we have a partnership with Editora MOL, a wonderful partnership that we have both for the publishing company. They are the largest social publishing house in the world. More than BRL 10 million have been raised with this partnership, and in the last 12 months, BRL 4 million have been raised. These BRL 4 million are given to the partner NGOs from the adoption program. It's a virtuous cycle that we create because the more professional NGOs are thinking about animal welfare and offering the best practices when it comes to adoption, the more they will be ready to receive resources from this project. This project is a huge hit because we offer quality product. They are bestsellers. If we were to compare this with regular bookstores, I'm certain that we would have the best-selling book in that bookstore. That has been helping us significantly. It has been helping us retrofeed the adoption cycle. It's interesting that not only we provide resources or financial resources, but we also use part of these resources today to fund training or on the management of these NGOs. We invest not only in providing resources for recurrent expenses, but also for structural expenses and for the improving of the management of this NGO. It's a complete plan for animal well-being. Group and Petz standalone. Talking about the Petz group, we have had a growth of around 39.9% in comparison to last year. Let's look at same-store sales of Petz standalone in the first quarter, we are talking about 14.2% same-store sales, and the same stores for the mature stores could be close to the high single digit. Very clean. In terms of gross digital revenue, we also had a strong growth. In terms of group, we grew 65.6%, representing 34% of the gross revenue total of the company. When I look at Petz standalone, we also had a very—a growth that's in line with what we have been pointing out to the market, 41.5%. That was what we have pointed out to the market, something around 40%. The same thing is true for the gross profit. We were talking to the market that our idea was, despite the inflation, to work hard so we could able to do the pricing business and keep our gross margins despite the opposite trends, which are the following, a higher penetration of digital in our results and a higher penetration of food. In terms of penetration, it has increased 4% in comparison to the same quarter from the previous year. That brings additional pressure to our results. Digital had a stronger pressure in terms of share of 3%. Still, the pressure on Petz standalone was only of 30 basis points. When we look in terms of EBITDA, we have been mentioning that in the year horizon, because of so many stores that we're doing, plus the backlog of the openings we did in the second half of last year, the pressure would be around 40 or 50 basis points for the year. In this quarter specifically, despite the pressure on the Petz and the gross margin, we were able to make up for that through expenses, whether we're talking about the renegotiation of transportation or freight or rental contracts or the efficiency with more algorithms working to make this investment more efficient. In the percentage perspective, we are becoming more efficient in tErms of marketing performance, and you'll be able to see that that didn't affect this growth in number of downloads and in the use of app. Finally, the adjusted net profit growing 57.7% year-over-year for the adjusted net income reinforcing this trend. A small adjustment in comparison to the accounting net income that refers to our stock option plan that has a non-cash effect. It's important to highlight that it grew 48% in the first quarter of 2022, with a total revenue of BRL 59 million. I have two highlights for you. First, for Zee.Dog, 90% year-over-year growth. With a maturation of hubs taking place still, but still the same-store sales or the same hub sales continue to be very strong, units that we opened a little bit longer ago. The gross revenue of Zee.Dog Brazil was also very strong, 50% of growth. Let's remember that in this case, we did make a price adjustment in the main Zee.Dog products and on the Petz products that are also growing because we are expanding the offer that we have for these products inside our stores. As mentioned in the previous slides, the pressure on the EBITDA margin for Petz standalone for Zee.Dog increases from 20 basis points to 110 basis points. We see this as a temporary effect. The first quarter was a quarter that did not include any synergy in terms of the financial elements. We had synergies of, in terms of brands, our own brands, and the mix of products. In financial points, we start to calculate that as of April, when we are already integrating the hubs and working in a number of initiatives like the service rate, so we can improve this profitability, improving synergies, and maybe reach a value that's very close to Petz when all synergies are updated in the medium and longer term. In terms of the expansion of the store network, like mentioned before, we opened 10 stores in this first quarter, a very significant number for Petz, a record level. Out of these 10 stores, seven were outside the state of São Paulo, which shows our ability to maintain NPS levels even with this huge geographic footprint. In terms of distribution by age, we have 23 stores that are not even one year since the opening, and that's why we reinforce this concept of a slight pressure on the EBITDA margin, because I have these stores that take between four to six months to reach a break even in terms of the EBITDA flow, and 47% of our stores are mature only. In terms of store mix, another interesting indicator that we have for this year is that 46% of our stores are located in other states. In March was the first month in our revenue outside São Paulo was higher than our revenue inside the state of São Paulo. The idea here, I mentioned this before, I wanted to show the differences in terms of growth. Zee.Dog incorporated to the group brought 10% more in terms of growth. Like I told you before, the growth trend for the Zee.Dog revenue will be sustained in the following quarters with the difference that the profitability is going to improve quarter-over-quarter. In terms of digital, we also talked about the digital performance with and without Zee.Dog. Of course, Zee.Dog increases our digital presence because we have now the Zee.Dog app that's very strong and the Zee.Dog website. The representation of digital has grown to 34.5% with more than BRL 250 million in revenue coming only in this quarter, which puts us as leaders in the pet digital market in Brazil. Another interesting indicators is our app. It's becoming more relevant. 67% of digital revenue comes from the app. It used to be 59% in the same quarter of last year. We added that. Our subscription program grew 50% year-over-year. Our subscription program is growing in the number of subscribers and reducing the churn. We don't offer aggressive sales to capture new customers. The good side of that is that the customers we capture stay with us for longer because they are not only focusing on a specific discount or offer that we bring. Talking about our efficiency in terms of performance marketing with the algorithms that we use. Even if in percentage points, we are working a little bit more with the marketing investment, we are still leaders in the number of downloads with our app. Basically, we have the combination of the second and third place in our segment with a highlight of the month of March, when we really took a lead in the number of downloads in comparison to the competition. Just to make one thing very clear, both in terms of gross profit and adjusted EBITDA, I'm sure you remember that in the fourth quarter of last year, we mentioned that we got a tax benefit in December, and this has to do with the whole 2021 period. The numbers that you see here for 2021 in these graphs are already adjusted. What we see in the yellow circles is the margin that you initially had, and it's higher when we adjust this credit to the base. Basically, we are talking about a gross margin that's relatively flat, which shows our ability to do price increases even with the increase of digital and the increase of food in our mix. For the adjusted EBITDA margin, pressure coming from digital and food, but with an effect of the expenses that helped us a lot. Even though if this Zee.Dog quarter affected our consolidated results, we were able to be very efficient in terms of expenses when we look at Petz standalone. Finally, talking about investments, the growth of our CapEx are BRL 45 million focused on new stores and hospitals. 10 stores and one hospital were opened, and around BRL 13 million with a focus on technology and digital structuring our growth with the app, our user experience in the website, and the integration of the acquired companies. In terms of leverage, after the follow-on, we continue to be in a very comfortable position in terms of cash, and this comfortable position is what allowed us to have, since the last year, a more preventive approach to control issues with the supply chain. We know that our suppliers are suffering with late deliveries, with containers, and specific issues with important companies for our mix of products. We were able to have enough stock, so we won't lose these customers once they are already with us. This was something strong that we did in the fourth quarter. In the first quarter of this year, we were going to continue with that. Of course, that our stock increases not only obvious 'cause of this tactical decision, but because of all the stores that we are also opening. Talking a little bit about our ecosystem now. In terms of Zee.Dog, we have the rollout of the supply from the hubs by Petz. This is the first financial synergy of this transaction. Petz with our purchasing power, acquiring from suppliers on behalf of Zee.Now. We are already doing that with some suppliers. It's a synergy that will start to ramp up as of April. This is already happening. The management from Zee.Dog has been mentioning the improvement in the supply. They are losing fewer sales because the use of the Petz distribution center, not to mention the improved financial conditions, because we are acquiring directly from the supplier and not from the distributor anymore. In terms of the maturation of the Zee.Now hubs, we had a very strong growth for Zee.Now, around 9%, but the same-store sales for the hubs or the same hub sales for the hubs that are mature was 56%. These hubs continue to gain relevance. In April, to improve profitability and to make Zee.Now a more profitable platform close to the profitability levels that the digital Petz platform has, we added a fee service of BRL 3.99. It's a fee service that's in line with all delivery apps that offer a super express delivery, and we're talking about a delivery taking place in 30 minutes. In the web Petz website, we offer two-hour delivery, three-hour delivery, but Zee.Now has this value proposition of a super express delivery. This fee didn't cause any sales reductions, churns, or complaints. Actually, we had only eight complaints from the fans, from Zee.Dog. Two other important synergies and optionality, as you know, Zee.Dog Kitchen, we will launch it on May 17th. We already show you a video with more details on the launch. Finally, a synergy that will take place in the end of the year, which is the nationalization of Zee.Pad, which is the pad from Zee.Dog. It's the best-sold SKU. 25% of Zee.Dog Brazil sales come from this pad. Petix, the recently acquired company, will be able to supply that in the end of this year, beginning of next year. That's why we say that in the second quarter of last year, most likely we will have all the synergies taking place in-house. Now the idea is to show you two quick videos with details of the launch of Zee.Dog Kitchen. We also have the reopening of a store in the Ipanema neighborhood in Rio de Janeiro, a space that was designed to create new experience and become closer to our pet owners, and it's a concept that could be replicated to other franchisees in the future. I think this will be a test of concept and a good pilot to understand how this format could be, whether it happens via Zee.Dog or via Zee.Now. We will study this model in the end of this year and beginning of next year. I think the idea is to talk about the feline world domination. We are hosting a lot of events to gather fans from the Cansei de Ser Gato community. We have hosted events in five different states, and these events, they have a long waiting list. Many people, more than 4,000 people have already been registered, and we have nine stores with exclusive and differentiated assortment of Cansei de Ser Gato products. What stops us from having even more stores has to do with supply. In this quarter, we are working strong to have a more robust source. Because initially, their production was a little bit more manual for some products, and here our Zee.Dog P&S will start working stronger on that in the coming months to deal with international sourcing on the same line that we do for the other Zee.Dog accessories. Finally, talking about the synergies that we have with Alexandre Rossi and Cão Cidadão. We have started selling online courses from Dr. Pet to the Petz's customer base. As you can see on the page, this is the homepage of our Petz's website. In one of the You can already see the banner for the online training courses, and they are available for our pet owners. We have dog training, puppy training, and we are doing a lot of boosts and activations so Pet customers can access this content and also become Cão Cidadão customers. We are working on the integration between Cão Cidadão and other segments from the pet segment, so Seres is hosting live streams to talk about animal behavior, and this has been a very good experience. Dr. Pet has a huge fan base and a lot of followers on social media, and he has been supporting us on our adoption program. We have created exclusive Dr. Pet content for tutors that adopt a pet. They will receive this content immediately. Finally, franchisees from Cão Cidadão can already create a virtual store. It's almost like an affiliated program to recommend products that they would recommend to tutors, like collars, dog beds. They can already do that via our website. They receive compensation for that, and we lock in that tutor, that customer who used to be only a Dr. Pet customer. These are the main highlights for Cão Cidadão in the quarter, and I think now we can open for questions. Thank you very much. Ladies and gentlemen, we are about to start the Q and A session. To send your question, please send it via chat so the operator can read the selected questions. Our first question comes from Maria Clara from Itaú BBA. Good morning. I would like to understand better the profitability dynamic for the quarter, thinking about Petz standalone, especially considering the gross margin. A pressure of 30 basis points seems to be very resilient considering the inflation rate and digital share. Is this behavior the result of the price increase strategy? Do you have any other initiatives behind that? Talking about EBITDA margin, we were surprised to see the dilution of expenses to accelerate the expansion plan. With the maturation of the new stores, can we think about a higher dilution from now on? Aline, would you like to take that? I think that during the presentation, we talked a lot about elements from the gross margin and the EBITDA margin. The gross margin, we do have these opposite forces, which are the share of the food products and the share of digital. We are working a lot with the Minhas Ofertas program and the price increases for the food products. I would say that we are also working with some incentives that we would bring to the loyalty program or discounts from ship from store that would not necessarily generate all the costs instead of investing more on My Offers program. There is a smaller effect of some tactical adjustments we've made in some of the programs, with a focus on pricing, that impacts the program margin. The forecast for this year, we see a very similar behavior. Probably the pressure on the gross margin that we have will continue to exist, or we're going to see something around flatish and a small pressure because of the trends that might continue throughout the year. Considering the EBITDA margin with improvements of Zee.Dog, we will see an improvement as a whole on the consolidated margin for the Petz group. Without a doubt, that depends a lot on the inflation and how much we can mitigate that in the period with our negotiations. We have been very effective in freight negotiations and rental negotiations. We hope to continue that throughout the year. What doesn't change is our perspective for the year of a pressure of 30 to 50 basis points of margin for a growth that would be above 30% of revenue, and looking only at Petz standalone, I mean. Thank you very much. Our next question from the webcast comes from Danniela Eiger from XP. Good mor ning. Could you give us more information on what you think about the laboratory strategy and the pet health insurance plan that is supposed to be launched by the end of the year? Would it be something organic that could be reinforced through partnerships or M&As? Considering Zee.Dog, you mentioned that the gains of synergy will happen in the next quarter. When do you expect that this operation will generate EBITDA again? And could you talk us a little bit about the evolution of the strategy for the Petz private brand? Okay. Thank you, Daniela, for your questions. I think we have three topics that you mentioned: the Zee.Dog brands, laboratories and health insurance plans. Starting with laboratories, we are understanding what is the best alternative. This is not a decision. Like everything that we do, we don't like to make hasty decisions because that has an impact in the mid and long-term results of the company. We need to be confident about the path we are taking. What I can say is that we are assessing both models. We are assessing if it's better to start this completely organically or if we are going to start via acquisition, so we have a platform that will put us a few steps ahead. This is a very complex evaluation. There are a number of factors that favor one model or the other, so we are deepening our understanding to make the best decision regarding labs. For health plans, we want to offer a vertical health plan. What has been happening is that we are investing in hospitals in different states, building a very extensive network of veterinary centers all over the country, so we can support our health insurance plan. The model that we will launch, the test we will choose for the pilot program, these are the elements that we are still analyzing, so before we launch our pilot program. Only after we launch a pilot program, only after we start to see in reality what it really means to have a health insurance plan, how pet tutors or pet owners see the value of this, what is the payment of the premium in comparison to the service that we offer. Only after we understand all these elements, we will be able to talk about the rollout and the profitability of the system. We try to be very consistent. In the retail segment, we have control of the variables, so we are at an accelerated pace. Now, in matters where we are still learning, we are a little bit more cautious, so we respect the resources that the company has. About the second part of your question, you ask about the positive EBITDA. In our perspective, this is going to happen in the second quarter. Am I right, Aline? Yes. Considering all the leverages that we mentioned, and especially the service fee that we added to the integration of the hubs, we are going to be moving to that scenario of profitability. In our perspective, the first quarter for Zee.Dog is the minimum of what's going to be. We pretty much did not benefit at all from the effect coming from the integration process. We still suffer some additional pressure because of the acquisition itself. We see this as the worst case scenario in terms of results. From now on, we are focusing in a different trend, a trend of improving results in the coming quarters. Now talking about the strategy for our private brands. As I mentioned before, and I would like to use this opportunity to highlight it, we have a very robust strategy for our private brand products. When we think about category management, for example, we put a best, better, good, and first price product. Basically we have four different levels for each product category. Out of these four levels, we are not going to work on the first one only, because the first, option or the first price, doesn't need to be connected to a specific brand. It could be any entry-level product. For the other three levels, we are developing a very robust work, so we can position ourselves with our own private brands or with exclusive brands that might be sold by us. In our perspective, especially for non-food products, we can be extremely relevant with the participation of this global perspective that we have for the positioning of our private label products. This was a great benefit that we are reaping from the Zee.Dog partnership. We are expanding our vision on what is an exclusive brand, what is a private brand, and how we can build that in the coming years. We are very excited about this. Thank you very much. We are ending the Q and A session right now. I would like to hand the floor to Mr. Sérgio Zimerman to make his final comments. Mr. Zimerman, the floor is yours. Well, thank you very much for your attention. Thank you for your time. We started the year with a very challenging scenario, as I'm sure you know, globally speaking. I think you are all following everything that's happening around the globe. Challenges happening in Brazil, political challenges, economic challenges, an inflation rate scenario. We are still very confident and very certain that our investment thesis is robust. Our thesis is countercyclical, so to some extent. Especially in moments of more stress, in these moments, we strengthen our conviction that we need to focus on expansion and build our ecosystem. We are absolutely certain that many opportunities come, especially because other industries in other sectors suffer more from the economic crisis moment. It is the time to reposition ourselves. Once the market comes back like it has happened before throughout the 20 years we have been around, we will be ready and well-positioned to make the most of it. When we were advancing on the digital, the pandemic came, and once again, we are making the most of the turbulent times to really strengthen our infrastructure. Maybe we could have a different perspective. We could focus only on results, but that might generate short-term value without generating mid and long-term results. The name of the game is balance, and this is what we try to do. Thank you very much once again for your attention, and I wish you all a great Friday. See you soon. The Petz video conference is now concluded. Thank you all for coming, and have a great day. Thank you for using Chorus Call.