Now I know that logistics isn't easy. I hope you really enjoy the day today. Thank you for your trust, thank you for your transparency, and you can rest assured that our expectation today is to hear from you, and is to share all the hard work in six months, actually, 144 years of hard work. Today, in addition to investors, we have many analysts, we have some members of the Hering family that received us with a lot of TLC, myself and Roberto, in these historical headquarters, that since 1880 have been on this mission, and we wanna honor this legacy. About our agenda today, we're calling this Day One instead of Investors' Day, because it's literally our day one. Two exact weeks since our conversion of our ticker to AZZA3. So we're going to talk about our purpose, our mission, our culture, about our operations model, governance, interaction, internal interaction, as it's so important for our business. We're going to talk about the board of directors that will be very relevant in this, in building all of this. We'll talk about the enabling fronts that the team was able to work on that in just six months. We have part of this in value generation, how we see that, and that was published in the material fact today. We'll also talk about technology and systems. After that, we have two big cases of the Azzas 2154 group. One of them is everybody's expectation, the work that brought us this far, and Roberto, who's going to talk about Hering. After that, the global case, that the Farm team had the capability of make it even more exponential, and give you more light, working closer to Roberto, where he really showed his ability in delegating and offering autonomy to people so that they could shine. Farm Rio. After that, we have final remarks, five minutes, coffee break, and even more important than that, Q&A. And then we have one hour for the visit. With the change in the Hering core product, the style team is located here in this center and area to create products and samples so that we can be very fast, and our time to market gets even faster. So my friend, my partner, Roberto, floor is yours. Thank you, everyone. Thank you for your presence. I hope that you really enjoy the day today, so because we're going to explain all the upsides that we've seen back then in the deal, to bring more transparency to all of you of what we believe and the potential to generate future value for our business. Correct? Yeah, definitely. It's a long story. Today, we're here, August 15, 2024. Yeah. Less than a year ago was our merger. It was a long. We dated for a long time, right? It was well-thought, well-built. Remember that picture? June 2021. I wonder what went through your mind when I called you and right, and talked to you about Hering. I called you and said, "Roberto, I'm at Copa in Rio de Janeiro." We never talked before. I don't know how I got your phone, actually. It was a cold call. No, actually, you called me once. You wanted to sell some brands. That was 2017, right? So I had your phone... And but if I just wasn't in Rio, I said, "Well, I have to go to Rio, get a room at the Copa, and talk to him." So yeah, I was like, "Wow, what, why does he wanna talk to me?" You know? And with the militia in Rio, kinda crazy. Yeah, it was really interesting, 'cause he called me, and he's like, "Are we gonna be fighting?" And he's like, "Congratulations on your courage. I really admire you. I wanna get to know you better." And then I understood what you, where you were coming from. I congratulated you. It's pretty interesting thing. It's really hard to hear that from the competition. Alexandre wasn't my competition, though. He's the one that tried to butt in here. Yeah. But anyways, then try to mess up things. But anyways, kidding, and it was great to get to know you. In Rio de Janeiro, we're very competitive. I was talking to Rony, right? We're kind of friends, but we were the competition, too. We were never that close with the Reserva team, and now I am. And Alexandre, I thought we're gonna talk as the competition, but actually it was a great conversation. I told him about where we came from, how we started, and then a year later, I had you over to my house for dinner. Yeah, it was worth it. It was for my birthday, and you said something that was very important. You were saying why we should be together, and you said, "Obviously, Alexandre, everybody wants synergy and value generation, but there's a bigger purpose." I created Animale with my sister in the '90s, was in São Paulo Fashion Week for many, many years, and I can see that fashion in Brazil is losing it, and our merger could generate value that goes much beyond growing revenues and margin, and long-term value for fashion in Brazil, and that's what really won me over. Yeah, I started off at 19, and I could see how hard it is to be an entrepreneur in this industry, so we talked a lot about how we can foster the fashion industry. Brazil's a creative country, and we have to take that creativity to the world, and that's what Farfetch's doing, with very skillfully doing that. My dream today, and a bit about our culture, the culture of the Soma Group, we don't work just for the money. Everybody's passionate about their brands, the brands they created, and how we can create these brands and make them long-lasting. So it's like a mother-daughter relationship, father-son relationship, and that gives us more robustness and guarantees more longevity. Time went by. It was 2 years, almost 3 years of a number of interactions and dinners. I've lost a watch once. I was leaving the Copa with Roberto. Yes, sir, we have a first call. Let me interrupt you. Pickpockets got him. That's what happened, and I had to be at the Copa at 8:00, and when I was close by, there was a lot of traffic. Vidal and Sasha was with me. It'd take me 20 minutes to get there. I'd be late. So I saw a motorcycle taxi, and I just jumped on. When I got at the Copa, and I didn't even see that someone stole my watch. I'm the guilty guy? Come on, come on. That's... Only someone from São Paulo would say that, that I'm the guilty guy. Anyways, this process started in 2024, a moment where I say that where from the pressure comes the union. It's undeniable that we live in adverse scenario. Everything's even more complex, and we talked in the beginning of the year, January 3rd, if I'm not mistaken, I said, "Roberto, let's have some coffee for real this time. We've been dating a lot, but now I think we can generate a lot of value if we get together, and I think it's time for us to make things happen." And everybody's been a part of that story. Important date's missing here, February 4, where I had the honor to open up my house and receive everyone there. It was kinda crazy. We signed at midnight on the 5th. So we were having pizza. Everyone, everyone was there, and that's when I had the pleasure of having Thiago over. So in the six months, it's like a whole lifetime, right? February, when we had the huge assessment, we mapped out a number of different consulting firms. We decided which one, what the investment should be, and March 5th, we kicked off the project. It was the fashion Fusão Arezzo, Soma, and Hering, that's what it stands for in Portuguese, and the team was awesome. And on March 25th, we got the Brazilian Antitrust Agency approval, the CADE, and then the process, we have Renata Moro from the integration. She was beyond just a consulting firm. She really dedicated herself to establish our code, and that's set in stone, which is how Roberto and I will work. We had a great meeting at the Birman home, and Roberto, you can remember that final hug that my dad gave us. Can you tell us about that? Well, first of all, when I went to Alexandre's home, he gave me Anderson's book, and for people who know him or have heard about him and who are starting from scratch or are in the industry, the book is awesome. And in Arezzo, we have, like, Zara and accessories and Campo Bom. Birman and Alexandre created accessories for Zara really fast. I met him a while back at a talk. We really admire his work and Alexandre's work, so I had an opportunity for the first time to meet him personally and meet Anderson personally. Few words were said, but it's a huge long-term vision that he has and a perception that he has that he still has a bit of some difficulty in communicating, but he's very clear in his mindset, so it was great, the hug he gave me. It's kind of like he was really welcoming me in his company. "I'm picking you as a partner."... Definitely, it was a difficult half year. I know that you lost your father, and I can feel the pain, and we had a very strong connection. Anyways, moving forward, we had the first challenge, which was the naming. So Katia Barros, she was our godmother, I'd say. She was incredible. We were in a deep naming process, and Roberto wanted 2154, something stronger. Can I tell that story? Well, I have a thing with the number three. Everything that adds up to three is great. So everything every time I bought a quota in a store or a brand, it had to add up to three, and then he came into my turf, and then when we did the math, it added up to three, and I'm like, "He's gonna do good. It's gonna be a great business." And so anyways, in the naming process, and based on everything that Anderson said and what I read in the book, we have to pay tribute to the people that somehow have more experience, and even to Fabio Hering, who taught me a lot of things. Mrs. Uta, Ingo, the entire Hering, Hering family is here with their legacy. Yes, we have to pay tribute to these people that started, and our mission is to continue this project. So I had that number. It has to be 2154. There's something about that number that appeals to me. And then Alexandre. Everybody's probably thinking that Alexandre picked the name. No, it wasn't him. Katia did that. And so we went to the Farm headquarters in that beautiful picture, and once again, we let him pick, my dad. So we had the leaders meeting, over 120 people. We didn't disclose that. Then we went into the blueprint phase in defining our actions, our action plan. June 18, when it was approved in the general shareholders meeting, and then we had a pre-meeting with the board. It was very positive. We announced that on July 1st, and on the 12th, on a Friday, that was a very important day, the second meeting of the team. So since May 25th, we had three meetings with over 120 people. Now, we got to get that better, get the figures better for 2Q. July 31, we had Boris Groysberg from Harvard that gave us a very important vision and a case that everybody knows about Scott, and with a lot of focus and clearly defining the strategy. On August 1, the day of the closing and the go-live, and after that, we had another meeting with all of leadership. It was a deep process, a lot of learning, exchanges, pain, a lot of sleepless nights, and we really trust in what we planted for this step. Snapshot that everybody knows the numbers. LTM, BRL 1.7 billion. Revenue is BRL 12.7 billion, 34 brands, and then we're gonna have four different brand clusters, so you can understand our mindset in terms of allocation - allocating capitals, number of stores, franchises, multi-brands, and 24,000 people that we are responsible for on a daily basis. Our motto, created by Thiago since 1880, we're here at this headquarters on the path to 2154. About the naming, and to explain everything that the process created, we'll be very quick on this. So just wanna let you guys know that the slides aren't in sync. So the four principles that guide us - Passion for our work. These are items in common that shows us who we are and how we want to be seen. So fashion, that's our work. We go beyond. We have stylists. We have shoemakers, retailers. We're restless creators and entrepreneurs, passionate to always do it better and more. So it's important to show people that we do have our style, we respect that, and we see that the diversity is an add-on and generates a lot of value. Yeah, definitely. This is pretty much what I saw. So Arezzo is from initially industrial company like Hering, so from the first generation, and on the other side, we were retail, and we go into being an industrial company. So we have different perceptions, we have different value levers, and obviously, we believe in one thing, they believe in something else, and we're working together. So obviously, I was afraid, but I've learned a lot. I understood Alexandre's mindset and how he sees his business, and somehow, the same thing happened. Yeah, in March, at lunch that we had, you taught me a lot of things. We understood each other, respected each other, and understood that we had complementary visions. I'd like to say that in the past six months today, I think of my business in a different way, regardless of the merger. I do. We probably had a very romantic mindset about the pipeline growth, brain strength. All of that is very important and will continue to be, but Alexandre gives us the sense of urgency, and what is actually supporting that? It, profit, cash generation, little capital employed. So across time, I understood that, and I understood that that will make our company have more investment capability and growth capability, and I'm sure you learned something from me, right? More than anything, it's the way that you supported Farm Rio's growth, and you were very hands-on. You gave them autonomy. Like Fabio told us, you set a very clear frame in generating capital for investment and in stores, but you gave them freedom to fix things, grow, and do things their way. Can I say something? Yeah, when that thing starts blinking, we're out of time. We do have an entrepreneur culture, and we encourage that autonomy. I think that, Farm International has Fabio's hand on it and many other people, but, we need to have freedom to try and make mistakes. Otherwise, we don't know really what is going to happen. So in our culture, I hope I contaminated Alexandre. Just leave them, leave them make mistakes, because it will generate a learning curve and speed up the learning of the executives of the company. Yes, we have power to go beyond, and our dream is to go all over Brazil. Azzas is a dream to reach our destination, which is 2154. We're gonna talk a lot about this number that goes much beyond numerology. My father, the founder, in a talk, he saw. Hering is almost 250 years old. My father was born in 1954, so each action we take is towards 2154. Boost the creative Brazilian power and elevate our fashion in our world. This is a short video for you to feel what is the spirit of Azzas 2154. The greatest fashion group in Latin America is born. Elegance em cada voo. Beleza em cada conquista. Asas. Azzas. Woo! Good morning, everyone. It's a pleasure to be here with you once again today in Blumenau. We're gonna talk about the model of action of Azzas 2154 that we built in the past 5 months. I'm here representing Alexandre, and Adriana representing Roberto, so we can talk about the 7 great topics. First, an internal diagnosis, benchmarks, and brand days. We have to make an assessment of this process. Then, we have the archetypes. We are gonna establish the blueprint, how we positioned our action model, and lastly, the structure and governance that we are implementing right now. So Bianca? Thank you, Vidal. First of all, I started the company 6 months ago, so it was together with the integration process, and I was starting to work the next day. I'm very happy to be here to talk about culture and people. We want to show how deep we went to be able to diagnose what, in fact, could boost us, but can also pull us down. So we did a deep dive for internal diagnosis to understand that we have talents, acknowledge that merger is a point of brilliant minds, either by their trajectories and how we got here, but also the talent present in the group. Our greatest fear is that we can join these talents in a way that respects what brought us here in the first place and our differences between the companies. So this movement puts on the same side the greatest talents of the fashion world, and we can be as big as we want. We can have the size we want. So that's the first point. Second is passion... we have a passion that is visible, and not just for the brands. We have leaders that are inspiring and really love what they do, and this goes throughout the entire organization. Executive leadership is complementary to the leadership that we have in the rest of the company, and the organization's adapted to the movements that happened throughout the years. So it's a group with amazing brands that have a soul, and they inspire. It's we want to keep the imprint, entrepreneurial spirit, so this is what we heard about. Creativity, the power of the brands and the potential for growth come from preserving their identities and their creators. So we're a group of brands that, in most of our brands, have their founders behind them. So there's this strong identity. You're gonna see we talk about Katia Barros and Marcelo. There are many opportunities to increase at Azzas 2154 and risks of non-cooperation. The opportunity is great, celebrating the difference, diversity, success, progress, and accomplishments. A lot of good people, strong people together. Based on that, we had our internal diagnosis, and three takeaways that went throughout the entire integration cycle, and that are with us in this process. First, it's important to acknowledge this moment and understand where we're coming from, what companies are these, and the greatest takeaways are increase, integration between our partners, Alexandre and Roberto, and also the other leaders of the company. So this is something that we did very deeply. You're gonna see, Alexandre talk about the source code. Alexandre and Roberto, being in the center with the successful vision, and it's key to address the role of each one, so this was one of the things that we discussed deeply. The value of the group is in the brands, and we have... The brands are a reflection of the people and the culture. We have talent, passion, and creativity. We also needed to be able to list the priorities and all the opportunities that we need to prioritize. The two groups come from incredible journeys, and still many paths to grow, and for that, it's important to stabilize, so that we can later think about synergies. The engagement of leadership throughout the entire creation of our model; we had several meetings, and 85 people interviewed in this process. We were able to hear everyone to be able to reach this model, hear their needs, giving space for people to contribute with goals and metrics so we don't miss opportunities. The archetypes that Vidal was mentioning and the platform that we call Azzas 2154 will give life to a governance that we will show soon, and also carry for our people, understanding that that's our main asset. Generating an environment of culture and integration is great, and also communication. The source code was built considering the reality that we have, but also translating intentions, motivations, and visions that we have for the company. Based on that, we defined our weights of prioritization in which we want to advance consistently and evolving constantly. We wanted to shield our business so we don't bring distractions, and with the less friction possible. We are a company that is listed. We need to consolidate the data. We also need a management system that is well-defined so we can have one single view of all the results of our brands, and based on that, make the best decisions, and also have the right people in the key positions, so that we can boost everything we need to deliver and ensure value generation in specific opportunities, so we can define priorities. Based on that, to reach our ambition of have maximum benefit from the integration process, we need to create a house of brands in which we can perform the most of each business. So we define the business platform, which is Azzas 2154, and 5 BUs. We have 4 business BUs and 1 industrial BU that can cater to all the others. Each BU has their own CEOs, we already communicated that, who is responsible for ensuring results, both quantitative, but also the positioning of our brands. Each BU has its scope of action and the archetypes that are specific to each one, and the CEO of each BU has flexibility and a defined budget, so revenue and margin, to be able to close the results of each BU. And these are the brands in each category, and we'll go into them now with Vidal. Vidal? Thank you, Bianca. Continuing with our assessment phase, we start our benchmarking process. We split that into two moments. A moment of benchmarking, external benchmarking, where the integration group focused in London and Italy, brought the main fashion brands and main fashion groups, so we can understand how they're organized, their processes, trends. Points of attention that they have been working on in their management and positioning. What was the conclusion of all that at the end of the process of a deep dive in how each of one of these groups operate? We don't have one single model that is a winner. We don't have two companies that are organized the same. Each company organizes themselves differently. However, we could learn the elements that they have in common, and that are in practice in their operations that could and should be differentials for the model that we are working on for 2154. So we had 15 insights that we brought in-house to challenge our business, from the way of the CEO acting, the model of each BU operating, the way to preserve culture, autonomy, people development. All this was translated into the model that we will see now. Next, we deep diagnosis of an internal benchmarking. And how did we call that? Called Brand Days. Each Brand Day had a deep assessment for each brand, 2-3-day meetings with managers, directors, specialists, of the 5 main points of action of the brands involved. We have the DNA of each brand, so who we are, how we do things. Next, the structure. How are we organized? And then governance. What is our business model, management model? The vital aspect, so our sell-out throughout the months, and a vision for the future. So I'm gonna highlight how we could make all this tangible and see the product of each one of these steps. This map shows a snapshot that illustrates everything that is behind the DNA of each brand. So we can see here a brand DNA, the identity, the culture, what is the soul of the brand, how it was born, how does it work, its strategy. So we're talking about positioning, design, go-to-market model, and we did all the mapping, the way of managing. This snapshot has also detailed information for each one. We have from Arezzo & Co, Animale, Farm, Hering, Arezzo & Co. This is an illustration for you to see how deep we went in-house, so we can seek the best operating models to strengthen and improve all of them, and all the synergies that we have, so we can join the knowledge from... in a way that no other fashion brand can do in Brazil. We just have to make it work. The second axis is structure, so understanding in our structure, our talents, hard and soft skills, what we're have to strengthen, what we have to change. We're gonna standardize, develop, on the change inside, transform, and work with our people and time, and team. About governance, our, as a performance and meritocratic company, how are each of them organized, and how can we align and work even better in our company? The vital flows of each brand, the magic of where things happens. This is the beauty of the model that we have that will be replicated and even improved in the group. In 12 months, how we develop the calendar and how do we do things? Lastly, the future vision value. We also map the challenge that each brand faces strategically, where we see potential to advance in gaining margin, revenue, the unit that we have in each one, as well as level of maturity and the capacity to expand. Now, I'm gonna show you the blueprint, as I mentioned, where we have the archetypes that we see. We have four models of possible ways of operating in the group. First, in a very centralized one, that we call it operation model, in which Azzas 2154 creates a lot of management, and then going through models that decentralize, which is to manage, direct, and the least centralized, which is to oversee. Let's say, almost like an investor that allocates capital, places the challenge, and at the end, just wants to see the result. We chose, after all this study and diagnosis and talk, which would be the best for our model? It's the one of guiding. So we have Azzas 2154 Group guiding the operations of each BU. The platform challenges each one of the BUs according to the business opportunities, market opportunities, because we get feedback from all of you as well, that the BUs have their own identity and autonomy to operate, respecting their cultures, and that is the way to develop their talents. And how do we get there? We can start with this guidance. We're at the beginning of this merger, so we split the BUs according to the model that they have today. The first BU, which is shoes and accessories, and the industrial BU, the way they operate now, it's the closest that we had at Arezzo & Co. We have women's apparel, men's apparel and lifestyle already in the guiding model, and this is what we want in the end game. And democratic apparel, which is management, in which we have many exchanges and synergy with Thiago. So it's about directing, and there's a bridge for us to cross. There's a maturity process and actions to be implemented that are mapped in each business unit, together with Alexandre, Roberto, and their respective CEOs. And even the 2 business units that we already have the direct model, we have a lot of homework to do to get to a point where everything is seamless in terms of interaction. Now let's move on to implementation, so we're going to talk about the framework and governance. So for the framework, given everything that we've seen in the assessment process, we have 5 golden rules. The first golden rule is our people: respect, retention, and increasing the potential of our talents. We know that here in our company, our main asset is our people. It's a creation company. It's a creative company. We don't have many tangible assets, and the model on its own doesn't give us many disruptions, so the impact, especially in the brand team, is very small. We have little friction. The model with a group with well-defined four business units and a group of brands, on its own is born with stimulus for development and a pipeline for everyone. Regardless of their business unit and where they... and the brand, they already see a potential for growth within the brand and within the business units and the group, and geographically. You can say it's infinite possibilities. The beauty of the business on its own offers a lot of attraction and engagement for people. The second golden rule: the strength of the group is in its brands, and brands are made of people and cultures. So preserving the way we act, ensuring the authenticity of each of the brands, and we'll show you later on how that works. Third golden rule: business unit is responsible for the results. So here we have the opportunity to guarantee that the brands are autonomous, to have their own management, so they own the result, they have accountability, and they are the locomotive of our business. Fourth golden rule: the archetype of directing will be built across time. And fifth golden rule: the key of success is in the relationship between the business unit and the platform. So how we organize, and we'll see that in governance, where we have a model, and the platform supports and encourages added value for the business units. So this is the organization. This is a clear snapshot. So Alexandre is the CEO and CCO of the Azzas 2154 group. Five business units, starting off with the industrial business unit, and after that, the four business units. So, shoes and accessories, women's apparel and lifestyle, men's apparel and lifestyle, and democratic apparel. This is the platform where we have the CFO, CHRO, CTO, CMO, CIO, and everybody we need so we can offer the support to the business units, as well as a shared business center. Excuse me, shared services center. And we have standardized indicators to guarantee meritocracy and clarity in the results expected. All the indicators or KPIs are common to all of them. The authenticity space, where each brand is individual in terms of VM, design, marketing, and monobrand channels, and the core businesses in each business where they can service all of the brands under them. This is clearly translated according to the organization chart, the same indicators for each business unit and what we expect from the platform. Now we go into governance. So how is all of this going to work? What is the objective of the governance that we've created? In this, we want to ensure the protection and the actions of the differential of each business unit and its brands, while at the same time, we can have more value from the platform to the business. So we have a clear north, so mid and long term, and practices short term. So all these rights are divided into results and creation. When we look at the calendar, we have governance that will require a lot of discipline and clarity of what we expect with what's going to be done. So on the two top blocks, we have rights with less frequency because they're mid to long term. On the bottom, more in the short term, so higher frequency, and the clarity of what we expect, of who's a part of that. So we have the model of action of the Azzas 2154 group. Now, moving on to a new front of construction. We did this one with Egon Zehnder as our partner, structuring the board of directors. So we start off with an acknowledgment to the time and transparency that, of everybody that dedicated themselves to this, because one of the most important aspects in structuring the board was to hear the investors' expectations. Way back, Anderson would say, "Listen to your investors because they see the market abroad, they see everything. They can bring in insights and perceptions that in here we cannot see." So we have 6 very important products that, together with the international and external national benchmarks, are the foundation of our construction. So the role of the board, what's the governance and role of the chairman, and consistency of the board? How do we retain talent? Integrating culture, how that's gonna work, and capital allocation and risk management, and how that's being done. Those are the main products that came from the diagnosis with the investors group. In addition, the benchmarks that Egon got from companies outside Brazil, many of them are from these fashion groups that we've seen here, and other companies with good governance practices in Brazil. So we have a board of directors with 9 members. Pedro Parente is our chairman. We have two other independent board members, Anna, Ruy and four members appointed by them. So three committees: audit, statutory people, compensation and sustainability, and integration and strategy. Governance already works... is already working. We've had meetings with the board of directors. The first one are already taking place. All of them have been scheduled till the end of the year, and governance, moving forward, will mature. I'd like to thank all of you in your collaboration in building such an important right for us. Sachete, to talk about the enabling fronts. Good morning, everyone. Welcome again to the headquarters of Hering. Thank you for your time. We're going to talk about the enabling fronts. It's very technical, but very important for the company. It's important to show the level of priority and care that we've been handling this in this project. Starting off with the Bain & Company's support, thank you, Gabriel, with the work, a long- very long-term partner that we've had, and work of all together of the companies. Azzas has been around for a while because the team has- that has created the enabling fronts started to work together in May. I can't mention everybody's name, but I'd like to acknowledge Gabriel Lobo. He was a great partner and friend since day one, since the beginning of the negotiation until we got to this result. And the entire group of Arezzo & Co. and Grupo Soma or Soma Group, that's now working as Azzas. This part starts off with legal, what's mandatory, what's regulatory, that we have to comply with to deliver this company according to the minimum standards and comply with governance, and the Brazilian Securities and Exchange Commission, CVM, and others. And since we had little time from May to July 31, we've been building that role. But regulatory is the minimum mandatory requirements that we have to comply with. In addition to that, we've broken down this plan into critical path. Critical path must-have, which is regulatory, mandatory, and critical path that's extremely important to deliver value for, in this company. So in this cycle, we started to build the pillars of how we're going to manage this company. So reports and organizing the basis for sell out, sell in, revenues, rules, all of that was standardized. So the management rights that were in a different way, we can see them integrated now at the frequency level and integrated the way the companies operated. So Arezzo looked at sell out every Monday with brand, store, multi-brand, franchise, revenues, margins. Soma had their own frequency, and now Roberto and Alexandre can also do that. They also have that information from day one, and that makes us very agile in that. So the report is important for you to act on the information. If we had different reports, together, we, we'd be together as a company, but probably wouldn't be adding value for being together. So as of the first day that we've started, August 1st, we were already bringing in value by exchanging information, and that's only possible because a lot of people worked together to build the enabling fronts before that. In addition, we have what's outside the critical path. It's not regulatory, it's not the minimum to operate and generate value together, but a lot of is still to be done. Internal audit, sustainability, finance, they're still doing a lot. You know that we still have different systems, so a lot is still being built, and in the next 1 or 2 years, we're gonna have to build a lot. We're going to have to pile up these activities in constant evolution. Practices, policies, all of that has to evolve, but all of that is being done with a lot of caution and generosity, as Roberto always mentions, the care and the respect to the brand culture is being preserved. We've been making gradual changes in the department, starting with corporate, but we will respect the moment for each step, so it's not traumatic and so that we don't destroy value in the company, and evolve fast in management matters and union, but that we continue to generate value through our brands. So where are we at? We're at day one. In this last part, we have a project that's bigger, and in the day one project, we set up a 100-day project, and that considers everything that's coming, everything that we haven't done yet, but it's important for us to have a company that's unified and well-managed. You don't have to read all of this. There's a lot of information. It's very... the slides are very busy. I just wanna give you visibility of what we've already built and everything that's going to be done from now on, so that we can build a company that will last till 2154, and not just next year. So you're going to spend more energy to have very solid foundation for this company. So there are fronts in tax accounting, FP&A. The report is public domain. You've probably had access to this on the website. We... I won't go through everything. Sustainability, there's a lot of people, and like Vidal and Bianca mentioned, we will respect the culture of each business unit and take care of people in different ways, but some things are mandatory. They're regulatory, government information, benefit rules, and so on, and so forth. A lot to be done in legal, management, audit, IT. So the idea was to tell you what was done, where we're going. There's still a lot being done, and we will use the culture that Roberto had already built at Soma and Alexandre and Arezzo to bring the companies together, but always structuring that. So the proportion of this union is much bigger, but it's structuring and will be built to last a long time. To close the chapter on enabling fronts, I'm going to talk about a discussion going into IR, because this is our audience here, so we're going to communicate how we will communicate the company from now on. Data that will be disclosed, data that will not, because today the practices are different. So we'll have to unify this, and we're going to start sharing with you, so you get ready for that, and see how you will receive data from our company, which is unified as of the third quarter. For that, we've used benchmarks. We don't have that many relevant benchmarks in Brazil, which is a house of brands that has different groups and verticals. So we used international brands, starting off with Europe, LVMH, the information that they have, how they handle the business units, what they open up and not, if they give details on the brand and the business unit, go into gross margin, if they break down channels or not, what channels they open, they break down, and which ones make sense. In Brazil, we have franchises, and that's completely different. So if we should consider B2B as a single channel, and we also looked at the U.S. market. So the best references that we found are Tapestry and the Capri group. They're footwear companies that have different brands in their model, to use them as the benchmark in terms of the best way to communicate, and give you as much transparency as we can. But obviously, having some sort of consolidated data, because if we open the 34 brands, I think it would be difficult for you to model that, and it would be very complex. So the conclusion we've reached and what we're thinking of is... This is our vision. So from the start, respecting what was communicated by the company, we're considering the model of a consolidation which will unfold into four major business units or verticals. So we have footwear and bags, women's lifestyle and apparel, men's lifestyle and apparel, and democratic apparel. So in those business units, we will break down the biggest brands or more relevant ones in terms of revenue, just to have... but not everything, so we can have consolidation. In terms of channels, we will talk about own stores, e-commerce, international channel, because now we have bigger international relevance, and B2B consolidated, multi-brand, and franchise in one single package. We'll still debate that. Obviously, this isn't fully defined, and we will read and listen to you, but this is the best model that we believe in. Then we can give you visibility, transparency, as well as a model that can offer consolidation, because 34 brands would be very difficult to analyze or forecast. Excellent, Sachete. Congratulations to your entire team. Excuse me. Now, we're going into value generation, our purpose. This was deep work, months of analyses, and we've reached this pipeline with a comprehensive view. This is medium to long-term. We've defined this into three phases, and the first one is worth noting. The first one alone is where we truly trust, given the granularity of data and a track record to present guidance to the market through the material fact, as you've seen. It's focused on the top line, and we'll show you how we got to those figures. Three pillars. The first one is supplementing the footwear and bags in the Soma Group. What we've been able to deliver in Reserva and Reserva Go, pretty much 20% of the revenues come from that. So we'll talk about the how-to and what-to in that front. And as Roberto mentioned in the beginning, our origin as a company, which was an industrial company to multi-brand. So 1972 up to 1991, Arezzo only worked in multi-brand, so we have a legacy, as Hering does. More recently, so to speak, since 2011, after our IPO, Bain & Company was the go-to-market for Schutz, where we successfully delivered. We had a granular analysis, and since 2011, we've been showing during the Investor Day, the granularity that we have in the Brazilian geo-economy, divided into micro-regions, understanding the market share we have, and obviously, the share of wallet of each region, and the way we work in apparel wholesale. Myself, Roberto, Gustavo, Charles, we want to disrupt that, going from a cycle from 4 collections per year to at least 8. Going from commercial reps and self-employed commissioned people that sell in brick-and-mortar to a hybrid team, considering reps and consultants that are actually hires of the company, that have targets and sales bonuses with a digital showroom, so we can expedite the time to market. So we trust that that's already feasible at Hering, and what we've presented is the upside, in addition to what is the track record at Hering. And last but not least, is our dream of bringing in the entire management of categories for footwear and product production to shorten the time to market for apparel. So here, at Hering headquarters, I'd like to emphasize the invitation so you can understand the migration, and where the styles teams have the capability of create and seeing their prototypes, instead of 3 months, 3 days, expediting the process. So we know that the responsibility in season is huge. We're gonna talk about expenses. Sachete is gonna give us a snapshot of these three fronts that are mapped, but we're not going to disclose yet how much this will generate, in the future. We're gonna do that for the revenues of 2025: logistics, marketing, technology, and SG&A. We also have a CVM for Hering and our business of apparel. We are doing that just for knits and not cloth making. We're also going to talk about managing the multi-brand channel, and a responsibility in-season for Azzas 2154 company. With 11 million customers, we have huge capacity. When they go into the Azzas group with their credit card, they become loyal. So that's for 2026, so we are sure there's a lot of value on the table. And also, the retail full potential. We have data points, segregation in regional clusters, consumer A and B clusters. If it's a store in the mall or a street store, and the best performance of each brand, we will have 54 sub-clusters in Brazil, and a benchmark for 2026, and the Farm Global. To talk about the three fronts that are already mapped, footwear and handbags, multi-brand, and responsibility. We're also going to commit of BRL 685 million, BRL 72 million, and BRL 214 million for multi-brand and improvement in our assortment of continuous items, and replenishing of in-season fashion models. This is the initial numbers of Hering. Farm, together with Marcelo, Roberto, and Fabio, will present their numbers here. Thank you. Thank you for this project. I wish you success. Good morning, everyone. The main issue in creating Azzas is what we can do better together. We know that we have many opportunities, both in capturing synergies, but mainly in developing initiatives that can, in fact, change the game. We started to think about these value levers in way back when the talk started between Roberto and Alexandre. And when we had the merger, we hired the consultancy to do some work on each one of them. The first initiative, we have these blueprints that are oriented towards revenue. The first is for footwear and apparel and clothes. We know that footwear is a very relevant category for all the fashion brands. On the left, you see brands that are more oriented towards value, that have 7%-10% of their revenues in footwear. And in red, these are when we think about Hering. And more affordable luxury and luxury, the percentage of footwear increases, achieving 20% of the total revenue, and these are two good references when we think about Farm. In-house, we have a success case, which is developing the footwear and accessories for Reserva, Reserva Go. Until 2020, this was a licensed line of products, then we had a transition from licensee to our business model, Arezzo & Co, with communication and innovation, and control of product engineering, production, distribution, and strong multi-brand distribution. And the results were very quick. In 2021, we had great results and revenues, and we've been having consistent growth ever since. Today, shoes and accessories at Reserva stores account for 20% in owned stores in revenue, and even more in multi-brand. This way of developing these lines of footwear for the clothing apparel brands are split into four pillars. First is developing product to meet the brand's DNA and bring this DNA in a footwear line. It's also very important, since the beginning, to identify what are the types of products and key categories that have commercial potential, and also the range of prices. Next, we have to develop the gears that make this process possible to continuously develop collections and the main artifacts of the collection. And our method to forecast the lines that we call Prev, and also reading the sell-out that feeds this process. The third pillar is to understand the differences of the distribution channels, and lastly, management, what this means inside the brand, inside Arezzo & Co. And for that, we are going to develop that in time like we did with Reserva. We have an entrepreneur spirit. We like to be entrepreneurs. It's part of our culture. Right in the first weeks, we started to develop a footwear line for Hering, and we launched them in the middle of May, and we already had some very important learnings. We saw that the injected footwear can translate the happiness of the brand, and with huge potential. We also discovered that the flats are a key category for the brand, and the high summer collection will bring models that will become bestsellers. At Hering, the first collection, although the sales were more spread out, we already identified that flats and sneakers sell well. We also are discovering what is the price range that works for each of these brands, and you will see these collections in the stores. About the gear to make this happen continuously with all the learnings that we get every day, we created a calendar and a prep that we called, which is the expectation. We have 5 collections per year, and they match very well with apparel, and this allows us to benefit cross-selling of shoes and apparel all the time with our multi-brands and franchisees. Managing these distribution channels, we learned from Reserva that all the mono-brand channels, franchise, and e-commerce are from the distribution center. The multi-brand is managed by Arezzo & Co, and the distribution is done by us. So this is how each one of these channels work, and this is very clear for us now. In 2024, we will have, with this footwear project, BRL 40 million additional revenue in Farm and Hering in the summer, which is selling now in May, and strong launch at the stores and e-commerce. And in August, we launched the high summer collection, and in September, we have the first collection of shoes matching the apparel being sold to the entire brands, a group of brands, that will generate revenue and develop our business even further. Now, for the second value lever, which is the potential of the multi-brand channel. We have four pillars developed on this front. The first one is to look at the customer segmentation and study of a detailed study of the market share per region. This is inspiration to adjust the sales policy for each market. In addition to that, we need to know the frequency of collection and potential of using the showroom, and developing mechanisms to replenish basic product that for Hering are very relevant. Automatically, even being a multi-channel brand, it's a pillar to inspire the sales force, and this front will be worked in detail with you soon. Going to the third front of phase one, which is our capacity to respond faster to demands in season, we know that to improve our sales results, you have two ways. You can do a better forecast or react quicker on what is needed. About better forecast, we established a calendar and assortment plan, so we can have more structured data. Also, our business has a lot of B2B, so we have to receive the orders in time, and our sales team will capture the best forecast for our products and new products. When we talk about reacting faster, we are going to allocate products, but also develop reactions in season, and this is our focus at Hering. We have the belief that we will build a platform that will synthesize this management model, and allow each brand to work better in our forecasts for products and better distribution, and react more and more in season. We're absolutely sure that this is possible and will generate consistent and growing results. Talking about these models of quick replenishing, most of you know this concept. It's very common in fashion. You have products and models that don't change throughout the year, so they have a long, useful life, so it's much easier than the seasonal products. And we already have all the well-known colors of the stage of the season, and we also have new products in fashion, and due to its characteristics, they can be replenished, and we have also the newness and the main trends in fashion. So the models in season are associated to each one of these styles. At the base of the pyramid, where we have the essential products, the program is very important, but we also have... In the franchises, we have a special distribution and improve the sales in that pyramid. In the seasonal products, which is also very important for Hering, the level of rupture is still high, and all the decisions are taken before the sell-out, and we need to reorganize the processes, integrating some decisions, and maybe 40% of that confirmation will allow us to have a better result on the seasonal. For the newness and we need the fabrics for these products. If we build programs, considering that already forecasting and organizing with the production chain, we will have 20% of the products being replenished in season. And all this together will lead us to have better operation indicators and the essentials and seasonal, we will have reduction of ruptures, and in seasonal and core, we will have quicker sales. We will be able to react based on the sell-out, and as a consequence, we have a less markdown. Two aspects that are key for us to do this, the first is focused on a few raw materials. So for essential and seasonal, 3/4 of the sale, which is a high volume, is focused on 11 fabric bases. They account for 40% in newness and core. So having these fabrics previously produced and well-organized orders with our own production industry, this will give us conditions to go forward in this direction. And lastly, the phases of implementation. We start with replenishing essential products and all the steps of confirmation of the season products, and then the next season, we start the repeats, forecasting the calendar, and we continue with this path for our own stores and the 25% of franchisees. This study with Hering possibilities will take us to that number that Alexandre mentioned, and we still have a lot to do in-house. At Farm, Gustavo Rudge, my partner, will show you how these. we are reaching these potentials. Thank you very much, and now I invite Rafael Sachete. I'm the only one who calls you Rafael, right? Yes, thank you. Just continuing with value generation and some things, are synergy and explaining, like Alexandre said, we start with phase one, and, we're bringing you a lot of flavor of what we're doing. It's not just the mapping of value that can be captured, but we need an execution plan as well, that, tells us how much resources we need, the teams, the teams that need to be engaged, and part of this front, are of these fronts already are capturing value. Schutz is already coming to the stores, so it's a long-term implementation plan, so we can achieve the numbers that you've seen, and irrelevant facts. It's a long-term project. We're talking about May to the beginning of December, and we have other phases taking place as well. I'm gonna give you some flavor of what it is. It is huge, but it has to be done with care. This is the pyramid of SG&A, where we have also the main accounts of SG&A, and this is what we're working on right now. We talked about logistics, G&A, without S, marketing, and technology. This is the size of the money, BRL 1.8 billion. They will be used with care, criteria, and we know that you expect, and the company expects to gain streamlining in G&A and S, so we can generate more value for the shareholders, continue to grow, and financing the dream of the company. So how is this G&A split up? So behind the zoom that I'm showing you on the slide, there's a lot of work behind that analysis, the main team and our team working with these figures, so we can have a perfect plan and the all the different values. In logistics, obviously, we have scale, huge scale for logistics expenses, and we have optionality for the contract volume, and there's a possibility of renegotiation and the possibility of assessing the logistics routes. There's trucks going everywhere with the Hering trucks. Why not cross with other brands from the group, and even optimizing the distribution centers, 'cause they're in different locations, and we can use that, so we can gain speed and cost efficiencies in such a big company? It's not G&A. I took the S out. Now let's go into corporate. There's some simple savings. We'll spend less with this Brazilian CVM or SEC, which is the CVM, just one fee and an overlap in positions. It's not that we're downsizing. We want to grow the company, and we really want to grow revenues. So we want to grow without growing the corporate framework and generate leverage or use the framework from the corporate structure to help out the business unit. There's over BRL 300 million on the table, and here we have the breakdown per business unit and main accounts. After that, in the basis of information, there's more details. We also have efficiencies in terms of contracts, so service companies, companies that operate with banks or financial costs. Given the rating and the size of the company, they should drop from now on with the union that we're presenting. Marketing expenses are relevant. Here we have two significant blocks: the marketing investment and performance marketing. That's related to sales, but there's also concentration. When we talk about performance marketing, we know where they're going. They're going to the big players, and with an optimized framework or by buying these services in a direct way, one brand buys direct, the other one buys through an agency. We're exchanging best practices already and finding opportunities to spend less on those fronts without having any impact on what we're investing to build a brand. Because we live off our brands, and we have to continue to invest in them. We need those funds to invest in them. But we can do the same we did before with a little less money, bring in efficiency, and care better for our brands, and direct that money that's left over to the brands that really need it. Investment in technology, which is very relevant, and technology expenses. Thousands of internet links. We have dozens of own stores, franchises, systems, software house, development, and not just the monthly expenses, but also CapEx costs. Today, the CapEx is relevant in the company, and that's important to support digitization and the constant evolution that our customers require. So now, with doing this investment jointly and shared, or even by sharing best practices, we will definitely have relevant synergies to capture as well. Like I said, this is just an overview. The objective here isn't to go into the details or give you any guidance, just to give you an idea of the G&A and SG&A that's involved. This is a roadmap, and when it's the front, number two is going to happen. The last item is very important, and we've matched these dates in the calendar so that we can build our budget for 2025 with the results of the synergies. A lot of work is being done so we can get this done, and in 2025, in the budget, we can already show the efficiencies or most of them captured for next year's budget. Now we're going to talk about the deal expenses or investments in the deal. We've already given you guidance this morning, but that was a consolidated figure. We want to give you more flavor and visibility. That's a sensitive aspect, but extremely necessary. We have pre-deal expenses, so that means attorneys, banks, the CVM, everything that was necessary or mandatory for us to get to the deal, so that's BRL 30 million. After that, we have the integration and the synergies and consulting firms that are helping, BRL 44 million. That'll happen in 2024. They have beginning, middle, and end. They should end at the end of 2024. And here, this is a breakdown per quarter, so you can see where we're investing those funds. And also for communication, launching the new company, brand, all the work that was done, we have an investment of BRL 11 million in that case. Lastly, our people. This was already part of the association agreement. It's, it's public domain since the day, day one, where we've announced, and this is a retention bonus for talent, so people really help us. We have an incredible team, and we need all these people in the short term, so we can build what we believe in as a company. This was already considered. Part of it is not leaving the cash flow on day one, and we'll recognize that in the income statement as of now, so we can have full transparency of everything that's involved in this transaction. And two, I know that you're careful with money, so we want to talk about other level levers and synergy, and not just things that are expensive. So I'll give you more aspects. There's the tax part now. I won't open up the entire strategy 'cause there's sensitive information, but I can talk to you about levers and where we can extract important points. So as you know, we've been informing that the company will have a relevant interest on equity base. The Soma equity comes in as the capital reserve, and that leads to a base of interest on equity. So combined, it would be over BRL 8 billion in equity, and you know how much that would be in interest on equity because you know, and that makes our effective rate significantly lower. It will help. The premium from Hering is very important because now, as we are together, we'll have the best financial and tax and operational strategy to capture and use all of that. We have a high tax loss in the international operation, working with the team, so we capture that through the international Farm because we have significant profitability and spending on income tax. So how we can bring together the operations to reduce that effective effect and the cash disbursement that we have to finance, and I hope that we can burn that credit fast because- and that the American operation will continue to give us a lot of profit as it does. Another item that we gave little visibility are cross lawsuits. We don't open that to the market, but obviously, each company gets to a result with no appeal, that is no, no longer appealable, and you can use unappealable in one company from the other. We can exclude one subsidiary under Rio de Janeiro that has, a lawsuit, or we can do that through Arezzo or through Azzas, and with that, we can have significant gains. We're not giving you guidance, but we have expressive numbers in that case. We have a significant advantage to capture as of January 2025. Now, we can't do that because we still have to drop down some corporate taxpayer numbers, but we will get that as of 2025, especially in some of, the cases mainly related to payable. And lastly, we have the... In the income statement disclosed for Arezzo two days ago, we mentioned a change in the system. I talked to some of the sell side and buy side some, and we'll have an important repercussion that we will recognize in the third quarter. We'll go back 5 years in the calculation of income tax and social contribution of Arezzo, and going back to that, that would give us a better base, because we've changed the format of the calculation, adapting that to the Soma model, and there's no discussion that we should pay, if the base is higher than the subvention, so we have a higher credit to recover. Most of it, we can bring it into the cash in 2024, and the rest is coming as an accrued loss that we can recover in subsequent years. So all of that is mapped out, being executed. We still have some tax fronts that are working and connecting to logistics. So it's important to show you, and show that we have fertile ground to capture synergies, and easier. We don't have to sell more bags or shoes or apparel. In the... It's about back office doing their work correctly and well, and then we can generate value for the company and support its future. Now, I'm gonna hand over to Maurício and Alisson to talk about the IT area. Good morning. Now, to continue with the presentation, this is Alisson, my partner, and we're going to talk about the intensity of the technology work that we've already started to build. So the work was based on the perspective of using three major drivers. The first one is understanding the technology situation with all businesses integrated, so efficiency, assessing the technology as a big lever for business performance, and obviously, the layer of innovation that's brought on by technology. As you can see, this work lasted 10 weeks in the first phase, mainly focused on the diagnosis, but we've already received solid lessons in this diagnosis that gives us the basis for the roadmap that will begin to be executed as of now. So many hours, and it was intense. Many teams, over 130 hours of interviews, over 40 meetings, and we're a house of brands. We're also a house of tech, and I have to say that our teams are in the Disney world of technology, and we have a number of technological opportunities. So over to Alisson. Good morning, everyone. I'm the Director of Digital and Technology at the Grupo Soma. So when we started off this work, Maurício, I talked to him and I talked a lot about the importance of understanding, at first, having a good diagnosis of our technological area. We have many systems. We are a verticalized chain, so it's very important for us to have a very clear roadmap. We have four business units under discussion, so we believe that we should go through eight major blocks. So first of all, macro processes, applications, ERPs, architecture, data, infrastructure, cyber, and IT governance. In those eight points, we created a work group with the... So it was very interesting. I had the pleasure of meeting a lot of people from Hering in the merger, and now with Reserva and Arezzo. There's a lot of great people in our group. So this type of work really showed us the potential of talent that we have in the company. We have a very important characteristic here, because we don't use technology for the sake of it. We're a business company, and technology is very close to the business to generate value. I've been with Soma for 10 years, and I've been through many departments. Today, I was originally in technology, but I've also been a director in other departments in the group, and during our journey, we added a lot of technology, and we mapped out all the company processes so we can have a good conversation about synergy. So what are the macro processes that are related in with each business unit? Can we use the best practices? So when we talk about algorithms or good visibility of OTB, and, or and push and pull. So there are many different tools that we can discuss, always using the talent, and that's what I'd like to say in technology, because we're talking about many different languages and models, so we have a lot of different talent in the company, and we need to know who the best people are and the best technology so that we can have a very fertile environment for technology and innovation in general. For that, we've used a framework, so we have benchmarks, best practices, comparisons between the business units, and SWOT analysis. The main deliverable here are the diagnoses and recommendations of what we can do in the business units with technology, and we're starting on a good journey to exchange the best practices, and the tech of the technology with all of these business units. To conclude, technology permeates all the fronts that were shown so far. This work is already happening, so when we talk about Schutz, Hering, Farm, there's already intensive technology work. But some of the topics were prioritized with projects that we're developing, and therefore, the resources, so that we can deliver more value in a priority way, manner. These topics go through ERP, and it's not a big bang. It's... The companies are solid. It's just more solid architecture integration so that we can really have all the control in our hands. The data layer, like what Alexandre said, using the value of over 11 million customers, so unifying in a single vision, view of our customers, that's very important. We're developing that, as well as everything that we monitor in sell out, sell in, and the results in the businesses. Information security, we already set up a group of good practices, implementing tools together, and governance is how we work, that Alisson and I are working together with all the teams to determine how the technology will add more value, generate more value, and preserve the company, and generate scalability for each and every one of us. Thank you. Over to Thiago now. Thank you. Good morning, everyone. It's a pleasure to have you here in our historical headquarters. This is where the first big plant was born in 1910, so it's a very important moment for all of us. I'll tell you the Hering chapter story. It's the oldest brand, the first of all in the Azzas Group that began in 1880, so I'll tell you about that moment. I'm the sixth generation, and I'm here to write another virtuous chapter of this history that is already very memorable. Since 1880, Hering, it's a company that is constantly evolving, that challenged Brazil in times so difficult to develop, with important transformations, with its DNA in the industry, going to B2B, and reaching a reality of B2C that's increasingly stronger, being recognized as a brand portfolio manager. The respect of this story is the starting point for everything that we're building in the next chapters. Very well monitored at the end of the context, since 2022, we received Roberto as a great partner. He's a passionate entrepreneur, as I call him, and more recently, the enthusiast, relentless Alexandre Birman wakes up at 5:00 A.M. and says good night at midnight. Four months of intense experience and exchanges. We went to Goiás, to Campo Bom, to Blumenau. We visited stores, we interacted with franchisees, and went to the north of... and the northeast to do a roadshow to learn about their secrets and how they're doing so well in those regions. And it, it was an incredible journey of a lot of- with a lot of learning. And with the four months of a lot of coexistence, that was intense. I'd say that a symbiotic relationship was born, not just between Alexandre and Thiago, but Arezzo and Hering and the companies. Many of the similarities between the companies and B2B and segments and everything, you already know about that between them, but there are many other... And some of the characteristics of the Arezzo model that can be used in apparel and help us to break the paradigms. Obviously, we need to map up things, and each segment has their specificities, but we see initiatives that can be done jointly, increasingly more. So in the afternoon, we'll have a sample of that, breaking paradigm, to show how we can reduce our time to market in apparel. And if maybe not make a T-shirt faster than a pair of shoes, but faster than the competition. So we'll see that our research and development is very inspired and dynamic, based on the visit to Campo Bom, and a lot of new ideas will come up. If the group has a mission of developing many synergies, the relationship is symbiosis between the models, the companies, and the assets. This is an event that happened one month ago on the opening of this R&D, and also the largest collection of the year. Of myself, Alexandre, whole Hering and Azzas team, more than 500 people, with the sales team, not only to see all the commercial strategy for summer, but also to deep dive into the soul of this headquarters, this new moment of experimenting in this excellent R&D center. If I had two good, relentless partners, I have also a full team that was polished for the past four years of fearless young talents that, works collaboratively and collectively, and with successful journeys in retail and fashion, and with growing chemistry. Victoria, Philippe, Tess, Maria, Gustavo, Fausto, Carol, and all the others here, I'm sure that we will- you will be able to talk to them in the break and get other important messages. They're gonna be at our visit, at our R&D center this afternoon. We will land at the Hering, store. I saw our fall collection yesterday that's going to be in the stores, and already a result from this development process. The journey that we started four years ago was to build a value in the brand, and when we brought this mindset, maybe people might think, "Well, a brand, Hering always has brand." Yes, it's one of the greatest at assets. 99% recall, but it also had some barriers of consideration, brand margin, online experience, and store experience, also a distancing from its proprietary identity. We stopped being a brand to become just a store, and that's very little for the asset we have in hands. Since then, we conduct and are transitioning through generations with this team that received the baton to evolve the attributes of the brand and build a successful path. The brand value is the base of everything that we are building. So here are some very recent information. So we go for a very high brand recognition, and also some restrictions of purchase consideration, and we are seeing consistency. It's important to be consistent, both in consideration, visits, and intention to buy. These numbers are very positive, and considering our clear focus of men, women, AB1, 25/34, the main evolution are exactly in our target of gender, age, and socioeconomic, class. So more than 10 percentage points evolution in consideration, 25/34, 8%, 8% increase in visit from women. So this concept that we're bringing of mega stores and digital is very powerful, and it's the right path to go. Once again, Hering is a highlight in our top of mind research. Top of mind, answering the question: What is the first brand of clothes that comes to mind? It's in the second position here, ranked second. Another important information, this internal data, our customer base, that is growing consistently year-over-year. We have a balance between new customers and average expense, and also a very high reactivation, number, and also a change in demographics. My job, my feminine. Our target is becoming younger and more women. Now I'm gonna talk about this change of brand, a very strong work. It's a marathon, it's not a quick race. We need high confidence levels to evolve consistently. And communication, the key message is retrieving this DNA and the heritage of the brand. A brand from 1880 has a lot to say, and at the same time, with the modern language, speaking with the spirit of time, bringing re-signified basics, and also with the help of influencer and digital, and never forgetting the commercial dates. Another important point of our brand is that it's a great gift, so we continue very strong in our commercial communication for these dates. The most recent commercial was this partnership of Bruno and Bernardinho for Father's Day. Now, a little bit of the Hering that we want to be proud of from now on, and I'm gonna share it with you A, Hering. This is Hering. Mother's Day, Hering with mothers Sabrina Sato, Mônica Martelli. Valentine's Day, Hering, Sabrina Sato, Nicolas Prattes, Gabriel Leone. Valentine's Day, Malu Borges and João, Calça 1990, the wish piece of clothing of the season, Brazil's basic, the basic in music, Father's Day Hering, iconic duo joining fashion. This is the new moment of Hering. I'm sure that this timeline from the past six months of campaigns really conveys what we're looking as brand positioning, communication strategy, and brand experience. So here are some indicators of reach, engagement, conversion, and each of each action, each content, and always a joining of the idea, an influencer, and aesthetic fashion influence. This is what we built to create a new brand image of Hering, and the results are very encouraging. What summarize all of them is 36% increase in brand recall in the past six months. This synthesizes all this work, and publishing fashion content has to be all the time. We saw peaks in events and celebration dates, but we can bring more consistency 12 months of the year when we talk about fashion, product launches. After all, the product is what we sell. To conclude communication and content, we need to have an incredible purchase experience. So we're refining our experience in social media. With e-commerce, things change. We started with a microcosm, our website, mega stores, stores to change the look of the stores. People wish certain products in the online experience, and they have to have the same experience in brick-and-mortar stores. So this started in 2020 with the store at Morumbi, and more and more we're applying the same rationale of technology, project, and product. So we have to evolve continuously, respecting the economic-financial feasibility. So in a short time, we went from Morumbi to Ipanema, and now 3D photos of this project that is bringing back our facelift at Ibirapuera Mall at the end of September, beginning of October. A facelift also in Morumbi, and we're gonna test a warmer, more humanized store. And what we can capture with this new experience, in addition to sales, qualitative indicators, so an NPS above average, high conversion rates, women, younger consumers, and these are some of the indicators that we have with this new experience in brick-and-mortar stores and in digital. This new experience is an incredible turn from 2019. We felt that we were way behind during the pandemic, and Soma was growing exponentially, and we made a huge effort for new purchase experience, customize this experience, review our CRM, be more effective in media, and I feel that we are reaching maturity, not in growth numbers, but in methodology and operations, and the past results are very encouraging, and we think that there's a huge potential here. Expressive increase in growth, in sales conversion, and the turning point was have a very ultra-personalized experience, in our app, achieving 44% of conversion for Hering. It's sales with maximum quality and very low cost. Our cost is much... Our ad cost is much below market. And digital is not just a friction experience, but it's to generate desire, and it's also a platform of relationship that we have with our customers. So we're very excited about this. I will show you more details about our online experience later. 1 million users, 349% growth in revenue, 290% revenue in women, 244% in sessions. We're seeking innovation... to deliver the best experience, contents, and novelties to be inspired, features to make your life easier.... Your personalized app. And strategies and push. Segmentation, the right message for the right customer. Luiza, you abandoned me. Your piece is waiting for you at Hering App. Now, let's talk about product. After all, this is what really boosts our strategy. For the past years, I had... One of the greatest missions here is to create a team that had enough repertoire to evolve the product attributes in our portfolio without losing our DNA. We were distancing from our proprietary identity. So I'm very happy to have Philippe and Tess with me to transform Hering's product, this new face we gave to our products. I was talking about the before and after the video. If we brought a video of 2015, it would be easy after nine years. When we compare year-over-year, the work of the same people, we have significant improvement. That shows we're in the right direction and continuous improvement of our portfolio. I wanna hear from franchisees that we are getting the most for our products. And where is this contribution coming from, from the sell out? What are the programs? I would like to highlight three of them. Ribana is our stuffing. It comes from our proprietary development. Linen has been very important at the stores as well. It's casual, but it adds value. It has Hering's face on it. We've been having a very good performance. The third example has to be with the collaboration of brand. Basic clothes making, and this is becoming a perennial line and it receiving dedicated space. In men's apparel is to rebuild the men's basic wardrobe. It's not just jeans and T-shirts, it's much more. It's the essential wardrobe for all categories. If your closet catches on fire, you're gonna go to Hering to replenish everything. I would also like to highlight linen and our main basics with a facelift. Sometimes we are... We do the best in the best way. We're also growing our premium basic line. If you were here three years ago, we would see more T-shirts from the competition, and now we have you as heavy users of our products. We have... It shows that we go much beyond just T-shirts. It's been a very important point of our portfolio, but we have new technologies, and that has had a very special place in our products. The third highlight is sports. This is an immaterial line of products still, but has been showing interesting growth. It's very nice to see a line used for audience. So we had an incredible increase with the audience of 18 to 24 years. The youngest audience of Hering, high-quality products, that is going head-to-head with the main brands in the market, and week over week growth and feedback that is very important for the brand. And how does this product land on these channels? When you are building brands, you have to get everything right. You have to transform experiences, but how many points of contact, how many customers will this new message reach? Our time to market is 8 months, and our campaign planning is 2 months. How can I take this faster and reach more people? The starting point was to accelerate our D2C. Hering until 2029 was an 80/20. Today, it's 60/40. So own stores, we expanded the mega stores that joins brand positioning and translates the best experience of the journey, and digital at full price, and a completely remapped experience with a lot of customization. These two channels have been showing interesting results. I would like to reiterate that the brand strategy is being successful, and our mission now is to scale it for all the channels and all the points of contact with our customers. So we reiterate our confidence in digital, that this year will achieve BRL 400 million. Very confident in these figures. When we were the ugly duckling of digital, today it's the brand with the greatest sales in the Azzas group, and we have sophisticated app, reducing the average delivery time and several other investments that are important for our portfolio. So that we can achieve that milestone, that number that we really trust in, in digital. To add to the D2C strategy, 43 stores at the end of 2023, 55. Owned stores, franchises, expressive growth, zone of excellence in NPS for younger female group and more satisfied. Here is the guideline for opening, so at the end of 2027, 121 stores. That's not the maximum potential that we have. We will analyze that after each inauguration, each new store opening, so there's very attractive in terms of CapEx, return rate, and dilution of fixed costs. So commercial performance, good profitability, that's very good for the brand. We have five franchisees from the 25+. It's worth exchanging experiences with them and asking the obvious questions: "How many stores will you open in the next months?" So now moving on to our current anguish. So if we trust the brand strategy so much, and B2C is responding well, how can we scale that faster in B2B franchises, multi-brands? Because franchise, we're doing the foundational work, improving the chain and in execution, not just VM and but also the purchase. Right now, we have asymmetric aspects and a lot of things in results. In the past years, we had 40% of the chain to a better classification, and 80% to the best clusters in the excellence program. These are the weights of what we're focusing on in trying to pursue operating excellence in the chain. Our big partners, so these are the top 25 franchisees. The group is very active, and they have an open channel in our meeting rooms, in our office. They talk to us a lot, and with them, we have a new dynamic of pre-purchase so that they can help us in assertiveness and demand, using insights and more encompassing knowledge to be more assertive in the purchase and act faster. They perform above average in pretty much all the indicators. They're multipliers of good practices in the chain, and without a doubt, they will and will be a part of the strategic turnaround of Hering in franchises. We have a long tail that's more resilient. In addition to the 25+ ambassadors, we have to have fertile ground with active listening. So when we look at this survey that was published one month ago, we had good. It was well-welcomed by the chain, and the satisfaction level, financial and general, is higher and much higher than the market benchmark. This was done by the Praxis Institute, and they conduct surveys for the big franchise chains in Brazil. So the final question is: "Would you do the business, do it all again?" So 83%, two percentage points greater than the market, said yes. The other very relevant channel and historical channel, I would say it's where it all pretty much started. It's multi-brand. It went through many different proposals in the past years. Today, we're very solid in the south and southeast, and a huge gap in other regions. We also see high dispersion when we look at the size of the city, customer profile. In the past years, we see.... The good news is that we see an adult getting stronger year over year, and the smaller lines suffering less, and also concentrating on kids. We see rescuing the relevance of the big customers and some of what, of a challenge in the long tail. So through this snapshot, we start to fine-tune our commercial strategy with the support of Bain & Company in all its expertise. This is a vision, in fact, with no surprises. We have market share levels that are very high in the south and southeast, mainly driven by mono-brand. Shares that are less relevant in multi-brand, and a huge opportunity in the north and northeast and other metropolitan regions, including Rio de Janeiro. So there's brand work to be done, regionalization of portfolio, making the calendar better, as well as public relations actions. I've captured a lot of insights in the seven-day roadshow with the Arezzo & Co. in the northern northeast. Their numbers are amazing, not only in wholesale, but also in monobrand in those regions. In addition to the brand work, there's also important work in re-signifying the sales force and increasing the productivity that we will explore even further. So this is the same mandala as Cassiano. It's the basic mandala of managing a B2B channel with customer segmentation, incentives, policies, how to structure the sales force, and what's the best way to serve. There's a lot of disruption based on the Arezzo & Co. inspiration in terms of representative profile, time to market, and incentives, policies. So we're strongly exchanging information with the commercial teams, not just through the project, but the total vision of the channel. And the output of the project is to seek two major levers, and expanding the footprint focused on the less mature markets that I mentioned, and a gain in share of wallet of our best customers through cross-selling and strengthening our basics line. So we started with high summer work to capture quick wins and restructuring the sales force, not only in the number of commercial reps, but also in their quality, their profile, and in the way they act. Also, houses and offices that represent the group, and educating them and focusing on regionalizing the portfolio and local influencers to build a brand that's not that solid or strong when we talk about the hotter regions in the country. And it can also... Monobrand can help multi-brand. We've opened mega stores in Fortaleza, Recife, Salvador, and the main capitals in the northeast. And could take advantage of monobrand to learn more from multi-brand, so many aspects that will lead us to capture more in these markets where we are not that mature. On share of wallet, we're working on two fronts. So we customize the policy even more and break it down, so we can distinctly encourage different profiles. So for the big ones, an incentive to cross-selling, if they don't buy men's, they can buy women's, and for the family store, guarantee that they have the complete journey, even for kids. Working in the showroom for cross-selling of categories and basic selling in season, and guaranteeing availability in this channel as well. So it's not a work of volume, share of wallet, it's about increasing frequency. You have to be careful with the inventory levels of these customers. You can't try to extend the line too much because of limitations, surface limitations that they have. So it's about buy more collections, more assertive manner, and have healthy inventory levels. Lastly, we have news. Alexandre and Cassiano mentioned that firsthand, so we have new categories. In addition to sports, we have the big launch of shoes at the end of September. They brought in the numbers that were fresh, all show qualitative figures. So for the first time, Hering will have full look, head to toe, with proprietary images, exclusive products built together. It's important to have distance from the Arezzo profile and have its own proprietary message and the right price point. With a launch program and a lot of 3D resources to present that, the best way as possible, the new line that's coming up. This is what the mega store looks like. And it's time for the final message. So to stress our strategic pillars, the first step, generate desire for the brand. Focus in AB1, men, women, 25-34 years of age. The brand experience that I mentioned, each part of it, how do we scale that up to all of Brazil, to all the channels, so B2B can catch up in performance and brand enchantment with B2C? Unrestricted use of digital as a platform of knowledge and relationship with customers. A fundamental block, innovating in product, never leaving our proprietary style and generating perceived value, continuous improvement to our basics. Launching new proprietary technology, being the Brazilian Uniqlo, developing partnerships as a part or independently. Strong B2C that gave us the tone of the new experience, and that the new experience is quickly absorbed by B2B. To have a chain that's with less dispersed and more homogeneous results, and expressing brand better and a strong multi-brand. Coverage model for all regions, selling in more mature markets and selling more to our customers because the product, a complete solution, is the best solution for our customers. And our mission is not just to guarantee vigorous growth, it also plays an important role in the group's portfolio in terms of profitability. So we see margin being expanded through a channel mix and sales. We did our homework and G&A, because cost pressure is from the low growth in the past years and now in the business unit. So but we do have room to continue to grow, low capital demand, and maintain itself as an important asset in generating cash to finance new projects for the group. Three moments of this presentation: the challenge of the childhood friend, the identity gap, an outdated experience, retraction in B2B, and cultural transformation with a new strategic focus. We received an incredible company with a precious asset, so it's now time to go into the virtuous cycle. That's why we're in the team. We recognize the evolution in language, aesthetics, purchase experience, product innovation. The D2C test has already worked. It's unique, it's strong, but we have to scale that experience up fast to B2B. We really count on the 25+ as our multipliers, so that we can go into an era that's about expediting. Everybody in this room is anxious for a new rhythm at Hering, and we're the first ones to wake up in the morning with that feeling. And to speed that up, we really count on the support and sponsorship of not only Alexandre, but the entire Azzas team. There's a lot to be done in R&D and GTM to prioritize launches and more profitability. As Cassiano mentioned, our model is restricted to part of the period and part of the channels, owned stores specifically, so it's important to extend that to all channels and all layers of the pyramid. Full potential reactivity. Scale the brand experience that's enchanting, incredible, and has good commercial results in mall and digital to more places in Brazil and all channels. Multi-brand, that takes up all the places that it has to all over Brazil, especially in warmer regions, and that we can have a long-lasting relationship which is financially feasible and win-win situation for our customers. And the cherry on top project that Alexandre is an enthusiast, which is the launch of shoes. It's an incremental revenue and will translate not only into more sales, but into an incredible solution for total look for our customers. So this phase began on August 1st or February 5, where we started to interact, and the group is really energetic and feeling the responsibility heavy on their shoulders in a good sense. So let's go for it. That's Hering. Thank you. Okay. So I don't have much time. I'm gonna do this as fast as I can, so we can give the visibility about Farm. I have an issue here. There you go. Okay, now we're good. So I'll talk about the current context, and then I'll talk about Farm, et cetera, Farm Latam, Digital 2.0, Farm responsibility. or responsivity, and Global Farm. I'll talk about the current context and how we see our business unit, which used to be Soma ex-Hering, and now it's the current women's business unit. Current context. So after the deal, this is how I've split up the assets that we have in the business unit. We have Farm Global, 20% share. We have Farm Rio, which is a very big operation that we have in the business unit, so we have 33% share, and we have 47% share of the other brands. I'm gonna show you how they've behaved, how this portfolio has behaved in 2021, 2022, 2023. So we were gonna show 2024, but unfortunately, that's not possible yet for logical reasons. So we had a CAGR of 23% in these clusters combined in Farm Rio, and Global delivered 47%, Farm Brazil, 22%, and the rest of the portfolio, 19% of the CAGR. This is what we call other brands. Just to simplify communication, we have CAGR from Animale, that's 16%, CAGR of NV, 24%, Maria Filó, 12%, Cris Barros, 40%, Foxton, 33%, Fábula, 25%, and the last one's not that significant. When we move on to Farm Brazil, we can see in 2021, 2022, 2023, a CAGR of 22%. For Global, we see the CAGR of 46%. Now, to go back, this is what I believe in. The main synergies in this deal goes through giving me more time, so to speak. We know that a CEO has a number of different commitments, institutional commitments, boards, committees, investor relations. You take up some of our time, and I'd like to help you guys out, so that's an important synergy. When I look at this in-house, we have a very high track record growth. I don't allow less than 15% growth per year. When I look at the portfolio, when you say other brands, this portfolio was pretty much forgotten during that period after the IPO of the company. There's still a huge opportunity, and Animale, it was distant from me, and now we're going into the multi-brand because we had 6 months resting, so it's going into multi-brand. Maria Filó has a turnaround for 2024. I can't show that. It really motivates us. Cris Barros, 40%. So that's not going to be an issue to achieve the sustainable growth, at least, 15%. And in Farm Brazil or Farm Rio, we have a solid CAGR of 22%, and then we're going to go deep down into Farm Brazil to see the options in growth, because that will support the 15% growth. And lastly, global was something that we really got right. People ask, "Why don't we go faster? Why don't we grow more?" I think this is the thing that we got right the most. And when we started sending money to the U.S. and the operations there, Fabio was an entrepreneur. He started off from scratch, understand the market. So now we have deeper knowledge, specifically because we didn't have much money in the beginning to make things happen. And Farm Global will continue to grow at a rate of 25%. We're not going to stick with the same strategy, because it's no use to throw gas in an operation and make it grow 60%, 70%, or 80%, because as it grows, we also have to learn, so it's very passive. If you go too fast, then it's gonna be an issue, and then could be a huge risk. So consistent growth at a rate of 25%. As we grow, we learn, we get things wrong, we fix them. We don't have a benchmark for this operation. We don't have an e-book about how it's done, so we're just being pioneers, trial and error, and correct, and we're doing well. This is Farm's ecosystem, and I would like to call my friends here. I have very little time. I would like to talk about Farm, et cetera. I would like to call Fabio. I'm going to speed up. What I'm gonna say are very important things. Farm Brazil, everyone talks about global Farm, but Farm Brazil has less possibility to grow, but Farm Brazil is growing strongly. I like to say that if you don't grow, you reduce or disappear. I'm very aggressive commercially. I came from sales, and the organic growth, that's a given. We opened 17 stores. And we can explore much more this brand strength that we've built throughout the years. We're working with several projects, Farm et cetera, Farm Global, Farm Latam, and other projects in the productivity pillar. I'm gonna speak for the first time about this new project that can be the size of Farm in the following years. It's incredible, and I'm going to comment about it. It's called Farm et cetera. The capacity of Farm to expand its brand, to explore products that are related to lifestyle. These products were always in the collections, like Care and other partnerships. For our surprise, with a project called Me Leva, Take Me, we understood that we could, it could turn into an extension of the brand and not an isolated line. A new brand with the name Farm, but with a huge potential for growth. It's a brand expansion project, and it has with a line of products that are related to Farm's lifestyle. I'm just going to mention Me Leva. Me Leva was a project for casual sneakers, and it would grow little by little every year. Then we started to launch other products like backpacks, wallets, suitcases, and we were surprised with the market's response, and this is what happened. From this understanding of 2021, I had this in my head. I sat down with Kátia, Farm's founding partner, but the boss of Farm is Kátia Barros. She almost is the boss of Soma. I sat down with her and said, "Well, this is what we have. Let's set up Me Leva." She said, "Stop." She understood the importance, because she was an accountant from UFRJ, and she's a genius in fashion, so she also knows everything about the business. She said, "No, this is not how we do this. We need a project, almost like a new brand. Let's work with marketing, branding, the entire structure to work in favor of this project," which Me Leva didn't have before. I said, "Okay, let's do this." We used other lines to add to the portfolio of these Me Leva products. So we had candles, sheets, everything that is part of this new brand. The Little Findings, which is a project of mine that we started five years ago, that is very successful. These are gifts that are related to Black Friday and Christmas. We do this in Farm stores. We're gonna bring this to the new project as well. The partnerships, some international, like Adidas, Havaianas, Starbucks, Flamengo, the soccer team. This partnership is great. We're gonna bring this to this portfolio, so it's gonna be a huge project, which by chance, I just heard that we closed the flagship at Garcia d'Ávila in Ipanema, so the project is gonna start with two flagship stores and some items from Global that will be part of the portfolio of this huge project. I'm personally spearheading this project. It's my project, sharing daily tasks that I had before to be focused until I deliver this project in full, and in time, it will have the power to become a new Farm, as I said, in just a few years. So this is first-hand news for the market, but it's the vector for growth for Farm Global. Just to put into context, the trust I have in this project, when I learned that we were going to start the project, I decided to test some of the products. I got some Me Leva products, got all set up the store very quickly in one week, with all the diversity of our products, products that we already had. The stores were in ideal malls. They were in mid-sized malls. We set up the store in one week, and we were hugely successful. The sales of this pop-up, this way, without any campaign or anything, sold closely to what a Farm store sold. So we decided to speed up the project and knew it was gonna work. These are some of the items that we're gonna sell. And to conclude my talk, we saw another great possibility. The problem with fashion and retail stores is innovate their audiences all the time. Farm does this very well. It's a brand that speaks to young behavior in its core, and it's been in the market for 27 years. So these reinventions of what the brand is, products to continue crunchy, which is how we call it internally, this project also meets this power. When I saw the pop-ups, I only saw teenagers, and we know that 8-15-year-olds today are kind of lost in terms of the choices they have in brands, and it's a way that they learn about the brand and its diversity. So this is very important for the future of the brand as a whole, and a great addressable market with affordable price range, and this is my bet for the future, in addition to other products that Alisson will talk about now, which is our Latam project. Well, to talk about Farm Latam, I'm gonna first explain how it started. I did several e-commerce analysis to understand where the flow was coming to our websites, and I saw that we had a relevant flow from people from South America, neighboring countries. I brought this to Marcelo, and Marcelo is an enthusiast and very entrepreneur, and he said, "Well, let's catch a plane and visit some of these countries to see how Farm could go to these countries." We went to visit some of the malls, and that was, like, four months ago, so it was a little while ago. We saw a market fit of our product from Brazil, very similar to enter these countries, unlike Global, that has a specific audience. Here, we see possibility of selling products from Brazil... both from the aesthetics and the price point of Brazilian products. We also understood in our discussions that it's a relevant market. When we add all these markets, there's a possibility to explore a market similar to Brazil in terms of size. So it's an interesting market for us to explore. For 2024, we decided that our strategy was going to explore wholesale and digital. The first half, we sold BRL 4 million in both wholesale and digital, and now we're working to expand this revenue. How? Just going into the levers for digital, we opened domains in the main countries. Today, our websites are in these countries listed. We send products from Brazil, so we have logistics partnerships with an acceptable lead time, and we are being successful there. We talked to some marketplaces that are big size in Latin America. They have a relevant flow, and Farm wants to explore these marketplaces to sell our products there. And since Farm is very Instagrammable, they p eople already have brand awareness, even without a brick-and-mortar stores, we have a good brand recall in South America. So there's a possibility to explore seeding and communication and social media with Instagram. So we did some jobs, and we think this is a good lever for growth, copying Global, and for Global, digital was a good catalyst for sales. The other lever is multi-brand and brick-and-mortar stores. We already are in 22 multi-brand in 11 countries, so we have a team to advance in this front, working with franchises. We have partnerships to open franchises, and a flagship in some strategic markets can be relevant also to expand our brands. So this, these joint initiatives, it took 2, 3 months of the first half, gave us good traction, and we believe that it can be a good lever to grow Farm Brazil for the next few years. Not just speaking of LatAm, but about digital. Farm is a brand, as you all know, extremely digital. We achieved BRL 180 million. It accounts for 40% of our revenue in B2C. We worked strongly on digital at Farm. We go from the code of the seller to inventory, but we concluded or advanced for the past two years in connecting of multi-brands and omni-channel. A multi-brand sells Farm, so multi-brand can sell through digital platforms. So this type accounts for BRL 46 million in sales in the first half. Doing the math, compared to revenue, you can see the size of the potential of using multi-brand capillarity for digital products and selling our inventory. We also understood that there was the possibility of connecting multi-brands inventory in with our digital inventory. So when you buy at Farm's website, you don't know if it's gonna come from the distribution center, a store, or from a multi-brand. So they're all connected, and we can ship to the end customer. And GMV accounts for BRL 27 million. We account that in GMV because of the inventory. So we're talking about more than BRL 70 million in the first half. And omni-channel is not just inventory, it also comes from the content generated, the role of the seller. We have a 2-year program, training our sellers, generating content, understanding how they communicate. We know that each seller will have their way of communicating, so we brought the universe of multi-brand to conduct this work of digital sales. So we check our potential. More than 400 sellers, more 1,000 contents to support this revenue. Now, we work with connection of omni-channel services, so we have our digital wallets, the possibility of each one having their own digital wallet, and that's very important when we talk about multi-brand synergy. Can we use a wallet for another customer that uses more brands, since everything is connected? So it's not unlike the schematics of Farm. So a gente, a gente tem o cashback. We're using cashback. Sometimes people don't know how to do a digital or physical cashback, and we have this connection with omni-channel services. And in mobile point of sale, if we don't have the product, and multi-brand has it, you can sell the product to your customer with the inventory of a multi-brand. So the power of the services are being explored and will grow greatly in the next two years. And lastly, our app. This is how it grew for the past months. It achieved 41%. It's also a backbone, shared with Hering. So we improved the app and improved the app for all the brands. So usability, understanding, analytics, generate a lot of value, so that's something that brought a lot of power for Farm in the past few years. And what about the future? I think we connected, we did a great job. I split digital. Farm is very digital, and we can be even better. I split into three blocks. First, it's a purchase experience in digital channels. We invest greatly in technology, and we have to customize our app. We need to deliver the right product for the digital customer. What is the product? How do you deliver a search? How should we build the category pages? So these are things that we're working on in technology. People talk about customization, but we want to go to a multiple segmentation of customers to populate our digital channels the best way possible. And lastly, for this lever, streamlining our media. A lot of analytics, a lot of intelligence to have the best investments in media. We've been testing several models. Some already showed 9%-13% improvement in using media to improve revenue or reduce costs, so we can better understand this, and we need good teams, good analytics capacity for good decision-making. So with the three digital levers, we can make Farm more and more digital and more and more powerful. Thank you very much. Now, Gustavo. Good afternoon, everyone. My name is Gustavo. I'm operations director for wholesale at Soma. I'm going to talk about responsiveness, and also, purchase improvement as a whole. We're gonna talk about some other things. It's pre-season, not only responsiveness. We have three moments in which we can improve our purchases. First, pre-season, before selling for wholesale, which we, we call bids, and then after the wholesale purchases. And the third possibility, which is the reaction of retail, what actually sold in our own stores. This is a little bit about what we learn in each one of these steps. The first step, pre-season, which is the big test, we applied at Farm, the product pyramid concept. We start from the base of the pyramid models and things that are already established at Farm that we repeated many times. We just changed the pattern of the fabric. We have other similar models, and some are very innovative at the top of the pyramid. A lot of brands work this way. What was the innovation for Farm? We added another dimension of the quality of the pattern that we almost like a matrix. The quality of the pattern comes from a technology we already had, which is very assertive, and our sellers and stylists talk about the quality of the pattern. And when we combine the quality of the pattern with the power of the model, if it's already established, we reach a cluster that we see at Farm. In 30 days, we already have 40% of rupture in our stores. We did this together with the Bain. That brought a benchmark of the market, so 20% of rupture, and specifically in this cluster, we can increase purchases without having a rupture. And the second part is the reaction in wholesale. So we have the proprietary model that we created in 2018, 2019, and then gains in 2021. I'll show you later. And with Hering, the model was stopped. We had 20% of our purchases after the wholesale showroom. Today, it's under 5%, and we see a potential of 20%, 30%, 40% of the purchases after the showroom. So in the middle, you can see the lead time. We have 23% of our products with a lead time from 90-120 days, and that enables us to buy all of the product after selling wholesale, and today it's less than 5%. The second part of the chain of 44%, with a lead time of 120-165 days, enabling us to buy part of production for retail, and then later on, we can-... go further after reading retail and the longer chain, import chain, one third of the Farm sales with over 165 days, and we can apply that model. Lastly, we have the reaction to retail model. We did some math, and believe it's the most assertive out of all models. If we had the information when we're buying, that would be excellent, but we don't. So we've seen that Farm products are very concentrated in just a little raw materials. So if we consider three bases, we can cover 35% of Farm sales, and those will definitely be the candidates to test the retail reaction in a more aggressive manner from 30 to 45 days. It's a challenge, but when you see a Zara chain that's really fast, that inspires us to expedite in some suppliers, some of our products. And lastly, when we look at the power of those models, the first one we haven't tested yet. It's still on the spreadsheet. The second one, retail reaction, we tested in 2021, like I mentioned. So the turnover at full price of the products that did not have that reaction was 66%, and the ones that did was 73%, so we gained 10%. This year, when we started focusing on improving the models that we were working in the past six months, we improved the power of that model that we had interrupted in 2021, and now on the spreadsheet, we can see that we'll grow 25% at full price. We're gonna test this. There's no guarantee that we'll reach 72, but it's already a given that this model is much better than what we did in the past. And then when we go to retail reaction, in wholesale reaction, we have 72% turnover at full price, and retail gives us more assertiveness, but it doesn't increment our profitability as much, even though it does. It goes up to 85% of turnover at full price. And then how much we gain in revenues for every BRL 100 million, each one of these models, that will give us a proxy of revenue gains and gross margin. These are Farm figures as well. We've already applied that back in 2021 to Animale. It can be applied to all of our portfolio. That's what I had to say today. Now I'll hand over to Fabio. Good afternoon, everyone. I'm going to talk about the Farm Global Project. It gives me a lot of responsibility with Azzas 2154. 2154, but as a Brazilian executive in a successful case abroad, so that's why we're so proud of it. Let's recap the timeline of the internationalization process. We had the first international experience with an Adidas collab that is still available today, so that was the first scent of success of the Farm aesthetics abroad. And then in 2017, we launched the first project with Anthropologie, and it still lasts, that collab. In 2019, after a year and a half preparing for this project, we launched Farm in the U.S. in Soho, a dedicated site and an exclusive partnership in wholesale with Shopbop. In 2022, we get pulled by Europe, so the first experience is with Le Bon Marché in Paris. We already talked about that last year. In 2023, we launched the dedicated partnership in Europe with our second site at a location with distribution and a local distribution center. In 2024, we launched a dedicated site for the UK.uk, so the third site in our two first stores, standalone stores in Europe, one in London and the other in Paris. In 2024, we start expanding through the franchise channel to another location, our first store in Dubai, through a partnership with the Chalhoub Group, which is one of the main groups in the Middle East that operates LVMH, and so on. Well, today, now we have 4 stores in the U.S., 2 stores in Europe, 3 franchises, 4 concessions in Paris, 1 concession in London, over 670 wholesale points of sale in the U.S., over 210 in Europe, and over 260,000 customers active on our base. So it's a fast-growing case with and brand acceptance and desire in the international market, which is not easy. It's very hard to find a case that is that accepted that fast internationally, with a CAGR of 99% between 2019 and 2023. In 2024, I'll show you, we have over 20% of growth that Roberto mentioned before. The expansion came through 6 strategic pillars that guided us and continue to guide us. The first one, unique positioning and brand proposition, so Farm LatAm expands through Farm Brazil, and for global, we created a new brand positioning, considering the international market that has a different ecosystem, not just in operations, but also in competition. So we position ourselves in contemporary brands that are above fast fashion and under affordable luxury, with the brand positioning that's affordable for both audiences, trade up and trade down. However, with sophistication that we have through the aesthetics of the prints, that really sets us apart from any of these other brands. From the beginning, we were multi-channel. We want to include these channels increasingly more. Today, we're present in the main department stores in the U.S. and Europe. Europe, we still didn't have Selfridges, and now we have a big project with them in the upcoming quarters, and now we're having access to other department stores all around the world, such as Middle East, Australia, India. So that expansion in Europe will open up the doors in other locations. From the start, we highly focused on e-commerce, and that enabled us to distribute the brand quickly in an exponential gross growth. We surfed the wave of the pandemic and post-pandemic with fast digitization. It's a channel where we have a very good margin, over 80% in e-commerce, and enables us to have high profitability. Brick-and-mortar stores. Today, the profitability is in line or above the operation overall. Today, we have 4 stores in the U.S., 2 in Europe, and 5 concessions, which is a vector of growth for the operation and important. Third strategic pillar, product differentiation. We always knew that the print aesthetics was what would set us apart the most in the international market. This is an image of our ski collection. We've been talking about it for a while, so this really shows, goes to show how the print aesthetics really brings on differentiation and a number of possibilities. And I can't wait to see Farm Etc., because in global, it's going to be a significant growth factor. And product differentiation, which we've been working on, increasing the occasions for use, listening to wholesale when comparing to other brands. So other brands that are still bigger than us and these players, where do they act and that we don't? And why aren't we that successful? So we've been taking that opportunity as well. In terms of sourcing, it's worth noting that we are completely structured to have scalability in terms of supply. In the international market, we're still small, and the supply framework is huge. So the number goes from one third to half, almost half production in China, one fourth in India, and one fifth in Turkey, and a bit in the others. But in these three countries, we switch, depending on the geopolitical context, exchange rate. So we have two scalable. A lot of scalability in the supply plan. Products are distributed directly to our international distribution centers, two in the U.S., one on the East Coast, one on the West Coast, two in Europe. The most recent one is in the U.K. So the growth in U.K. above expected, we had some logistics costs, and import costs, and tax costs, which is above what we wanted. Today, with the distribution center in the U.K., is w e're over that, and profitability in Europe is a bit greater than the U.S. because of the exchange rate and other matters, and even the gains in efficiency with that distribution center. The fourth strategic area, our strategy is to create brand awareness. From the start, we supported ourselves on five pillars, and we've been very diligent in working on all five. First of all, wholesale. Using wholesale as a brand presentation tool for a very qualified audience, fashion consumer, generate trends, opinion leaders. So each one of the department stores where we open, we use them to tell the brand story. And when it goes... they go into our world, we take good care of our customers. Second pillar is the influencers, celebrities, community, working on the spirit that Farm offers, the aesthetics of Farm products, making people want to talk about it, that want to post wearing it. We talked a lot about how much celebrities and influencers use Farm products and post it in an organic manner. Third, our digital media strategy, in that case, paid. So once again, the Farm product has indicators compared to other brands that are much higher. The efficiency of those indicators are higher than others because of product aesthetics, the prints, and how it comes up in social media. Fourth is a collab strategy. In a partnership with other brands that also present us to their audiences in geographies where we're not that known yet. We still use the collabs a lot at, like, Starbucks is in, in France, like we did last year. Levi's in the US should come back among others, our physical experiences, and Farm has that bias of doing them in an enchanted manner, where customers are immersive in the brand environment, be it through store, pop-up, party. And this is the activation that we did during Fête de la Musique in Paris, during the Marais opening. As the fifth pillar, we have an innovation pillar, and Katia always stresses that, that we're always bringing in new things to the brand. We have a number of examples. We've been investing a lot in 3D program, and the labs program is helping us out so we can have visibility and quality in improving our 3D models, so we can even sell a product before a prototype, in addition to a number of things that we do in terms of innovation. And last but not least, a pillar that might be essential for the brand as we expand to Europe, the ESG pillar, and Farm is very organic in the brand. We use the hashtag #naturelovers a lot for the brand, so it's a pillar where we're already seen as a brand that's connected to sustainability. We're B certified. We've planted 1.5 million trees since we launched global, just with the money from the operations there. 100% of the operation is carbon neutral, and many other diversity initiatives. So where we're at? This is a recap of where, of how we got here, and what's our current moment. In 2024, which we disclosed yesterday, we grew 28% in this first quarter, with an indicator that makes us really happy, which is growing profitability. We grow the EBITDA by 91% this year. So a bit of the problems that we had last year, and Roberto mentioned in the call the day before yesterday, mentioned during last year, they're 100% resolved, and the European margin is very good, and the U.K. is very high. So that goes to show that we can put gas in the tank again, because the margin is good, and it's leading to cash that we can invest, right? Another indicator that makes us very comfortable for this future are the wholesale indicators that happened first. So when we look at the chart on the right and the sell-out, the key accounts in the first half, it grew 21% year-over-year, and that semester-over-semester, and that's not bigger because of Saks. They're having some difficulties, and we're very diligent, and only delivering when they pay us. So our accounts receivable are under control with them, because we are very careful. Other one- other players are above 25%, and that reflects on sell-in. This is everything that we're going to sell this year, and now we've already grown 31% year-over-year. And now we're gonna start the spring showroom, delivering in the first quarter next year. So the budget indicators, given the sell-out in the first half, they're already very positive or- and in line or even greater than what we expect in growing the operation overall next year. These are some stores in this period. This is in Chelsea, King's Road, and it's a spectacular store. It's a case of culture, among other things. It's a phenomenon. It's over 60% of what we had planned, and I was talking to Alisson, it's probably the biggest chain... Or excuse me, the biggest store in the chain of the whole Soma Group in women's apparel. We're opening two more in London. Talk about that. This is Paris, the Paris store we opened two months ago before the Olympics. An amazing store, a great point of sale. They're selling a lot, so we're very happy with that. Melrose in L.A., this is our flagship on the West Coast of the U.S., opened one month ago. Very happy with this store. Huge, a lot of natural light, beautiful store. These are stores that we've signed the contract and will open soon. Washington, D.C., this is the design for the store. Brooklyn and New York, that's not the design, that's just a picture. Upper East Side, Madison, should open by the end of the year. Two other stores in London, so Marylebone by the end of the year, and Carnaby, first quarter next year, strengthening our positioning there. New concessions, we opened at Galeries Lafayette in the first half of the year. We also opened Samaritaine in Paris. So in Paris, we have four concessions, plus another store, and in London we have three stores and two concessions soon. Franchises, this is our store in Dubai. It's a spectacular project, a new project for mall stores. It's a huge phenomenon. It's reasonably above what the partner thought, our partners, Chalhoub, it's much above what we had planned. They're already looking for other stores for us to open in the region, another one in Dubai, Saudi Arabia. So that makes us very, very confident of this expansion. Mykonos, another step in a project that we have for summer and European beach places. We did this process with a lot of care, so this brand wasn't just a summer brand, and this store is another example, and also Bodrum in Turkey that we reopened after last year. And next year we're already ready for a store in the Hamptons to strengthen our strategy. For wholesale, to capture new boutique markets, we launched a showroom in Milan to go into the boutique market in Europe, which is more important than the United States, because it doesn't have stores like Nordstrom and other department stores. We also have a showroom in Amsterdam that is for the Netherlands, and we have a temporary showroom in Miami focusing on these beach location stores in the United States. Our strategic pipeline, what should we expect for the next three years? Where our focus is. Geographically, we're deeply focused in the United States and Europe as direct operations. An even greater focus on the four capitals: New York, L.A., London, and Paris. This is where we're gonna invest more on. They are opinion leaders, cities that communicate to the entire world, so we want to have a very strong brand in these capitals. And when you look at the store openings, it's mostly in those regions. For expansion through franchisees, we have Greece, and Turkey, and the Middle East, and also starting three other regions: Mexico, India, and Australia, which Mexico is influenced by the United States, and India and Australia as former U.K. colonies. In terms of brick-and-mortar stores, which is another expansion pathway for the next years, United States, we already showed before, but we already mapped potential for 40 additional stores in the U.S. We're not gonna open them all in the next three years, but we already have them mapped. We'll continue to open stores with a lot of care, like we've done so far. I talked to Alicia, they are... Our spots are very well chosen. We're not going to stay in bad stores for long. We've mapped 20 stores in Europe for expansion. The more the brand is known, the more people want the brand. In terms of product, we have a great evolution to be done in our apparel portfolio assortment. We have 180 SKUs in Brazil. We only have 80 in Europe. We can develop this even further for use cases and other. Oh, we're gonna relaunch shoes. We've been working on that 100%, working with Arezzo team, also handbags and accessories, expansion of beachwear that goes hand-in-hand with the project of the beach locations, and exploring new categories like Farm, etc., that is coming soon. This is a first glance of our showroom for shoes by Arezzo. This was launched last week. These are actual pictures from the product and the showroom. It already brings a lot of improvement for department stores. Everyone is excited. These are pictures of the campaign, products. For me, this is a handbag that will be a bestseller without any doubt, with several prints and handles, with in wood like bananas and fish. So it's gonna be a bestseller, in my opinion. This is a selection that the department store has already made at our showroom. The orders will come through throughout the months. Nordstrom, Saks, Shopbop. And lastly, our great goal is to become the number one contemporaneous fashion brand in the world. It's not Brazil or Latin American, it's the number one contemporaneous brand in the world. Thank you very much. Fabio, representing Farm's team with Roberto, I'm very proud. In the five months we've been together, Roberto gave us freedom to interact, and congratulations. Very proud, and the showroom in Paris will be a huge hit now, and it's September during Paris Fashion Week. Yes, we're doing temporary showrooms today, but given the expansion, we just closed a very good contract with a very big location. We're gonna have a huge showroom and a farm experience, B2B, institutional, and an office there. So it's gonna reopen in September. You're gonna be there with us. Yes, definitely. To conclude this important moment, and thank you for your attention, we're gonna have a brunch to have something to eat. I just want five minutes of your attention to wrap up. Roberto, thank you for your trust, for the opportunity to spearhead this collective of 24,000 people. You're all brilliant. You're all representing 24,000 hearts direct with our suppliers, franchisees. I'm sure that we will have a lot of work, love, and passion, and humbleness. Important points that are the base of how we are going to bring together this vision, generating continuous return for all of us, which is allocation of capital, be it financial capital, which is important, but also human capital, our time, our energy, our attention. For that, we did an analysis that went very deep. It's simple. Simple means putting complicated in an easy way to understand. So we put our brands in four great clusters, because each brand has a strategic goal. Each phase of the brand needs a specific type of attention, and consequently, resources allocated. I'm gonna start with two brands that are legacy brands, and coincidentally, they're the oldest, Arezzo & Hering. They account to 53% of our business. Two brands, the CAGR, at the beginning, we were surprised because they're very high, and we want to speed the growth, but today we're victim of our success. Look at the CAGR of Arezzo & Hering in the past three years. Two brands with similar channels, B2B and B2C, and it's worth mentioning that when we talk about B2C, there was a switch. One fourth in each channel, Arezzo & Hering have 44% of B2B and B2C. Most of B2C is from e-commerce, a very profitable e-commerce, with, unlike other players that needs to buy media, it brings very good margins. We have two brands that are in a turnaround, brands. We're very strict in that sense. They have decreased sales. We don't want any brand on that layer. We want brands with growth. We only have two that account to 10% of our sales, and Roberto is going to put attention, and these brands very soon will come back to our group, which is Animale and Schutz. And 44% of our sales come from brands with strong growth. These are the figures. They're very impressive. Reserva, 33%; Farm, 28% of CAGR. Vans, with the licensing in 2025, we're gonna go back to pre-signed contracts. So we have a group of brands that are growing fast, and they will have capital generating through these mature brands that are the cash cows, and they need less CapEx to expand. Most is through multi-brand and franchisees, and these are the brands that will bring most of the resources, and time, and money. Then we have brands that are still defining their strategies. They're important brands for our future, but they're constantly being analyzed. They account for 5% of our revenues. They're important for our business, but they're still in a maturing phase. We have to leave them for some time to see how they will go in our strategy, but these are interesting brands. And we have new brands that are seeds for our future, but still have a very low percentage of our total. Looking at the column on the vertical, we have the added value per channel. Franchise is a BRL 2.5 billion; owned stores, BRL 3.4 million, 28% in e-commerce, as I said; BRL 2.5 billion with proprietary e-commerce with high margin, 20% of our business. The multi-brand, we call retail. It's a cash cow channel, because all the investment to manage the brand since you create a product has to be paid by the B2C channels. When you put a multi-brand, gross profit it generates is almost the bottom line, because it already has all the expenses added. You just have variable sales expenses. It's a channel that we will invest in to grow our international share, well represented by Farm Rio in our operations that needs adjustments to continue pull back for shoes, but still important for our growth, and it accounts for 9% of our revenues. We plot these brands on this chart. The size of the ball is the size of the brand, and here you have the CAGR of the past three years and the percentage it accounts for in our group. So it's very clear to see and understand where we're gonna invest when we put the blueprint with the mature brands, and the mature brands will fund the blueprints. And this is a constant cycle of our strategy, and we review them every year to define how we allocate our capital. Thank you very much for your time. Thank you for your dedication. I'm very well impressed how your work here. I'm proud, and also communicate officially. I'm gonna invite Bianca to thank her for the leadership as strategy, IR, investor relations, and a person who I'm a huge fan. The word he uses the most is to be eventful. Thank you, Tobias, for being part of our time. I have a lot to learn from you. And we went all over Brazil to prepare this day. Thank you for your leadership. You and Luiz, and Bianca will create this governance that will be very important to maintain the rights, the routine, and Bianca and Luiz will support me as chief of staff to have discipline in carrying out our agenda. Thank you very much, all of you. I wish you success, Tobias, welcome. We're gonna put wings towards 2154. Thank you, Tobias. Now, I know you're all tired. It's a lot of information. So now just update our agenda. We're gonna go to brunch, then we come back at 2:30 P.M. for a Q&A. We reduced a little bit the time of Q&A, just to 40 minutes, but I think it's enough. We saw most of it now in the presentation. And then we have a plant tour from until 4:00 P.M., which is really worth going to see the value, the process change. It was revamped, and you all can all see how it changed, and you can feel that it's really worth it. It's great to walk around and see the culture. We will conclude before 4:00 and 4:30 with a coffee break, and then we will go to the airport. I'm sorry for the delay, and we'll talk later. All the information is in the presentation, and you will get them. Thank you very much. Hi, everyone. Good afternoon again. Just to recover some of our time, we've changed the agenda. If everyone could take their seats so we can resume our activities. Try to stick to the schedule that we agreed on before lunch. Thank you! Pessoal, vamos aos poucos se sentar. Desculpa ser chato aqui, sou bedel, mas só pra gente- I'm sorry to get on everyone's case, but we need to stick to our schedule. Oi, eu já passei. Pessoal, sentar. Posso pedir pra todo mundo ir se sentando? Thiago, tem... Acho que agora tá mais fácil. Pessoal, boa tarde! Boa tarde a todos. Vamos lá. Good afternoon, everyone. Então, pro nosso Q&A, mesmo modelo- Let's move on to the Q&A, saying, as always, we have four people to answer here. If we need any help, we'll ask for help. Just raise your hand, and we'll hand you a mic, so you can ask your questions. Thank you. Das fileiras, do começo pro fim, pra ordenar. Pode ser, pessoal? Can we Oi? kind of, take the questions in order, in the order that you guys are seated? É, deixa pro final. Bota o Q&A mesmo, por favor. Boa tarde, pessoal. Rodrigo, da Claritas, aqui. Tenho uma dúvida em relação à parte de - a primeira alavanca de sinergia que vocês- Good afternoon, Rodrigo speaking. I'm sorry, the volume is too low [Foreign language] I'm sorry, we're not getting the audio. [Foreign language] If you could, the question is something about the Reserva comparison to Reserva, if they replicated their case. [Foreign language] But I couldn't hear everything. I'm sorry. Rodrigo Rodrigo, your question makes a lot of sense. It's a reason for a lot of analysis on our side. So let's start off with a breakdown. There's an essential aspect of that volume, which is Farm Rio Global. In the past, in 2021, if I'm not mistaken, there was an initial request from Nordstrom, Nordstrom, $10 million, and where the category management wasn't that well segmented in Farm, because it's a very unique product. There's a technical know-how in manufacturing that's very interesting behind it. And Fabio, remember when I bought Farm Rio shoes? 'Cause I was really upset. At Nordstrom, they had a table with 50 SKUs from Farm, and I'm like: "No, they're not gonna sell it." I wasn't giving the shoes the evil eye, but I was like: "Come on!" And then I showed Katia. I bought 3 pairs. I took it to my team down south, and I said, "Make the same product with our DNA in shoes, to make it commercial without losing the identity and make it fit even better." And I forgot about that. In February, when they were visiting our plant in the south, and I talked to Katia about that, and I was like she was like: "Yeah, that's different." So Farm Rio has a huge weight in volume here. We're talking about 20-25. So with the addressable market is much greater than Reserva. And then we're talking about a category that's shoes and bags, in Reserva, it's just shoes. So bags has a high percentage, especially in premium brands, where you have project, considering Cris Barros, Maria Filó and Nati Vozza, and that's bags, and Brazil needs premium bags. Schutz can get a part of that segment, but there's still, when we had Victor Hugo, Maison Saad, so their bags at 2,000-3,000 BRL, that are much cheaper than an imported one, 'cause that's gonna cost 12,000-15,000 BRL, because they're imported, and that are greater than the shoes that sell them, like Schutz and Arezzo. That's what gives us that volume. In addition, there's future growth and the results of 2023, you're talking about 2027, like Roberto mentioned, the CAGR, and you considered that amount on the percentage that would be lower than that, but your question does make a lot of sense. Should we go in order? Yeah. Can we go one row at a time? Well, we have 20, I think, questions. Well, sorry, I couldn't hear the question. Well, uh You're talking about Hering? Yes. Okay. I'll talk a little bit about what I mentioned in my presentation. We believe that first we have to prove the case of the new value proposition that was effective and adhere to the client, and the data is very much focused on own stores and digital, and it's time to scale up that experience. The first step, positively influence part of the chain, so the 25 greatest groups that are 25% of our revenues, so that they multiply in the chain. The best way to multiply knowledge is with proven results. The performance of own stores and digital, that's much higher than the average of the chain, and the performance of the big groups, that's also bigger than the average of the chain. It's the best reference to guarantee more effective results. For multi-brand, to answer the second part of your question, has less to do with the recommendation of assortment and purchase planning, but how we're gonna review not only the value proposition for the channel, but also the dynamics of our sales channel. So in terms of the value proposition is, consider the... rethink our customers, the fact that we have different customer profiles. So small customer requires incentive for frequency, the big one needs to focus on volume and depth. Big customers needs to know how to replenish in the biggest programs. Our incentives policy was very strict and tough, and with the work with the consulting and also the Arezzo case, we can customize our policies and ensure the correct incentive for each action and each sale. So we treating each customer cluster and region in a different way. I'd mentioned the north and northeast, a tactical plan is completely different. You need to regionalize the portfolio, you need an events calendar that fits with the region. So in the granularity of our business, we're aiming at different elements and attributes, a different way to play the game, so that we can ensure more uniform results. So the way to achieve it is much different when we compare small, mid-size, and large franchisees, customers, and regions. At the end of the day, it's about creating and operating standard in handling each, everyone, every reality on a case-by-case basis, so mass customization and a way to prove the results in D2C and franchisees. I think our mistake in the past was trying to impose a reality without effective results and a strong brand Time and movement is very important here, and more than imposing, is let them buy into that value proposition. So it makes a lot of sense about how to reach the small ones. Now, about the franchisees, franchisees. We're facing this challenge in the footwear brands, so especially in Arezzo. The relationship between the franchisor and franchisee is not a relationship between two taxpayer numbers. It's a taxpayer number with an individual taxpayer number. When you consider the 25+, and they're here, and I'd like to thank you for being here, there is a very close relationship. They breathe the business. It's really hard to reach 300 and 400 franchisees in the same way, so it's a process to get closer to them, and there's a supply model that we're discussing in changing the long tail, and that starts on Monday. There's a similar challenge that the small franchisee, they want more diversity. So that in terms of product assortment, they don't go deep into all the sizes. They buy more units than they should, and their store should actually be a store about selling the basic that are timeless, but they want the assortment because they want fashion. So that's a challenge with the long tail. And when you consider small franchisees, they're, like, 20% of the total, so we're gonna work on the 25 plus, and then the other 25%, and then we'll have 20, 25% that we're gonna have- we're gonna work with them in the medium term. That's about franchise. That's correct. We've been talking a lot, and we've seen some common dilemmas between Arezzo and Hering. Something that we like to say when we manage a franchise channel is assertive empathy. So we have to be directive in the recommendations, but we have to have some room for customization, because at the end of the day, Brazil is very diverse, and there are regional characteristics that matter and impact the customer in different ways. So an ideal measure that's not just ordinary is to understand and comprehend the different needs of each region and customer, and based on a directive plan. So that's the approach that we will aim at getting the same results that we have in own stores and digital and 25+ to the rest of the chain. So as Thiago mentioned, there's the digital way to do B2B, that you can increase capillarity, so it's. That's a reality, a paradigm that we've been discussing. And Gustavo, who's responsible for wholesale and Soma, that the multi-brand store owners, they want to touch the product. They want to see it. And e-commerce customers buy it without touching the product, so that's a different profile. It's a paradigm shift, and we have to find a way for them to buy without going to the showroom and using reps. So that will increase the share. To add to what Alexandre said, some criticism on our side, that we didn't consider GTM in apparel in the pandemic. Sure, did that. They did that with samples all over the country, and now we have a second big bang event, which is the union of Azzas to use that as an example of good practices and explore that model in apparel as well. Good morning, this is João Soares from Citi. Two points: first of all, about... A little more about international. You mentioned Farm Global. The opportunity is clear to expand in footwear. There's the department store demand. We understand that, but how would we fit in the existing operations in the U.S. as well? And in a more comprehensive manner, how do you see cannibalization? And last, I'd like to understand if my understanding is correct, but it seems like there's a lot of opportunities in synergies and revenues to generate incremental revenues, guidance based on incremental revenue, but I'd like to hear the expenses. Alexandre, you Alexandre, you mentioned SG&A and logistics. Where are more opportunities? I feel like it's in logistics, but if you could share a little more about that, so we can quantify that and understand the order of magnitude, that would be great. I'll start with the second part. You're absolutely right. Globally, be it through a merger or union of big houses, of brands, the improvements come in G&A in most of the cases, but the big value, the big gains are from revenue levers. That's what we're proposing. From the start, as it was informed, we were clear that the main lever that motivated Roberto and Alexandre and the groups to merge were the revenue levers, and we have more to show phase two and three. They're gonna give us that. It doesn't mean that we're gonna give up on the expense synergies, and they're quantified about where we're gonna spend our time and invest the resources we have. You mentioned something very important. Logistics, logically, has a significant impact in G&A. Always thinking that whatever the customer doesn't see is where we have more opportunities in leverage and improving efficiency. So you don't see logistics. They don't see the logistics, the trucks carrying or the tax, or having an Arezzo product inside an Arezzo & Co distribution center or Soma distribution center. All of that will lead to value, in addition to the power, the size of the check that we spend. We'll be able to decrease freight costs, so we see an opportunity. We mentioned marketing. It's not lowering our investments in marketing. It's doing the same we did before with less money, and we see different practices. And in all those different practices, we're already capturing a lot of synergies in the day-to-day. We've learned from each other. In the Arezzo day-to-day, in Arezzo & Co, we operate one way, buying digital media, sometimes, if it's an agency paying a fee, a lot of money involved. Soma has a different model. They created a mini agency, and they buy direct the media from big players. The cost changes. Obviously, you'll have G&A, but if we can get what they have, what's best in those line items and do better, we have a lot to capture. Today, we decided not to give guidance, and we'll be focused, we'll be loyal to that. So we'll soon have the how-to of what we're going to do and what has to be implemented, and then we'll have the budget for 2025 showing that already. So for the U.S., our strategy for 2024 and 2025, it continues intact, and the co-op of the operation, improving profitability and accepting a drop in revenues. So it's time to bet on the expansion of Farm. In 2025, we'll consider merging the international operations, bringing in better practices, but today we don't wanna mix things yet. So the strategy is also about knowing what not to do. So if it were, it working, reducing the pressure, sales, more investment in marketing after that's all reduced, when operations are at an interesting level, and healthy, with a loyal audience and excellent customers. Even in shoe business, right, Fabio? We have best practices. The commercial director in-house wholesale and shoe business helped in that, and even a recommendation of merchandising agency that's been to Brazil talking to Katia. So there's a lot of interaction backstage, but we still don't have a change in the strategic direction in shoe business to start to invest again, and open stores, and resume growth. But definitely, that's part of our dream. We still have that long-term vision. So, but for the next 12 months, we'll maintain strategy as it was defined in 2023 before the deal. About cannibalization in a more comprehensive manner, what have you been doing to avoid that? What can you share with us? Pricing, for instance, how can you mitigate that risk? Do you mean apparel? And shoewear. Oh, Roberto, you can help me. For the shoe brands of the Arezzo & Co legacy or Soma. The cannibalization, the competition between the brands that you're, you're gonna launch shoes in at Hering and the Soma Group, how does that compete? How would you avoid competing and cannibalizing the Arezzo & Co brands? That's a very important question, because we control that through the brand. People don't buy fashion for it being a product. It's not rice. You're buying a brand that has a specific design, design. In multi-brand stores, there is a competition, so the store owner can trade off products X or Y, but they won't give up on the brand. So each brand has their own challenge. In mono brand, additional sales. We don't have an expectation. It's starting now, it's gonna go to other brands, and in the short term, the customers would go... I don't think it's gonna be total look when they go there. It's not that they're going there for a shoe. So you're gonna add a shoe or a bag, the salesperson will be trained for that. So it's supplementary sales, so we can gain more market share in that category. That's the idea. I'd like to add. We're talking about women's operations. Historically, we lose a lot of sales in shoes because of what he mentioned about, Alexandre, mentioned about total look. It's an incremental sale. It's a sale that would not happen at Schutz, or Arezzo, or anywhere. It's the moment she's in the fitting room, working on her look. It's not cannibalization, it's a more. It's an assortment that adheres more to brand positioning. Today in Brazil, it's really hard to make good, quality accessories, especially shoes, that fit with our brands at the price that we need. So now we have a huge opportunity. Okay, thank you. On the first visit to Campo Bom, why don't we why didn't we think about doing Hering shoes before? Such a powerful brand like Hering. The main supplier and developer in Brazil wasn't available. It was off-limits. Good afternoon. Joseph from JP Morgan. What was interesting is how you built this proximity. I would like to understand the more difficult side. If it happened, what were the friction points to create this governance, this framework, to run the company? And Alexandre, when you look at Grupo Soma, do you see a lot of levers for Arezzo, maybe even to lever even more a growth for the brands? For Thiago, you're in the fourth or fifth generation of Hering. What will now really make the company go forward? What will improve? When we look at Hering, we still see the growth a little below what was expected. So what will make that growth really jump forward? I think that the first thing, our greatest asset is the brand, and it was hurt in the past years. The data that we brought from research show a new moment of the brand, be it by the evolution in aesthetics, language, communication, and it's now being perceived little by little by the end consumers. It's a long journey. I think I used the word marathon in my presentation, but we're starting to reap the fruit. We've been revamping the B2C stores that will prove that. We've been very limited by the volatility of our multibrand. We need to be consistent and ensure a more healthy relationship between sell-out and sell-in, which is the secret of a virtuous cycle for B2B and B2C business, and we start to see a new moment that is very close. When we start looking at the product, which is what we see, and a healthy price in the South area, when stores recovering flow, and more visitors, and more purchases, it's a plant that we're planting. I would love that there would be several factors, and that we could evolve our brand, develop all the channels, and grow all over the country. But in addition to the brand traction, we have the adjustments. We're fragile in some regions because we lack customization and regionalization. And the past two, three years with Soma were very important, because we got close to creative people, incredible brand cases. A brand was deeply supported by channels. Maybe because of the competition, we were not in. We weren't fighting brand against brand. We were fighting store against store, and I even challenged some of our executives to say that our value proposition was to have the same product, more expensive and later. So I think that rescuing our identity, our propriety, DNA, something unique and ours, and going back to delivering value, it was the starting point. The maturity for 722 stores will come with time, and I think it has to be supported on other practices. We still see a dispersion of results, of cost, by replenishment, purchasing, visibility of merchandising. We have a long road ahead of us with a lot of work to bring the same level of service to all our stores, same level of productivity. Can you repeat the question, please? Because there were three of them, I kind of lost. What are the points of friction when you were building your relationship? Okay, I'm gonna talk about the friction points. We already did several M&As. We did a big one with Hering, and our greatest deal in our life will be... That will be the biggest forever. In a process, first, it's like dating. We need to know each other. We have to respect each other and be careful. From the beginning, we established a mantra, that our relationship would be based on transparency, respect, and generosity, which is more or less the way that I was successful, even if with smaller M&As in the past. We did have moments of would not agreeing. The amount of decisions we had to make in the short term, sometimes it was more in one direction, sometimes in the other. But at the end, it was very positive, because that had access, and have a different point of view of retail, much more focused, as I said, on the B2B, on cash generation. Governance brought some tense moments, but I think Alexandre was very sensitive to understand the impacts of what could happen, and with the Soma Group, and destroy value of the whole company. I personally, these six months were for learning, for growth, and getting close and the learning the culture of Arezzo. And afterwards, we didn't have any major discussion, or argument, or rupture. To be very honest, in face of everything the market says, I was a bit concerned, but it was okay. It's nothing that was different from other deals we made in the past. Today, I'm very comfortable in my position, the governance that was built, with the relationship I'm building with Alexandre, that is based on a mature relationship of two executives, people who have a huge responsibility. I'm very comfortable with this process and very optimistic for the future. Excellent. I would like to compliment... Sorry, with Roberto, Thiago, and me. We had a very important moment when we were discussing who we would choose for the board, as chair of the board. You were angry with me, and we stayed a few days without talking, and then we did fix it, and I think that's part of a relationship. We had several of these small moments. You were I was waiting for you, and in New York, and you didn't go. So let me say something. That happens in every M&A. It's the same thing. We wait two, three days before we talk again, then we talked, that was it, nice, but it's exactly like everything else I've experienced. About Hering, I have some important things to say. First, with the relevance and importance that you have, at the end of your question, you said something, "What are you going to do different now for the market to believe in you?" The answer's simple. Answer is deliver results, and that's a logical question. Where do we have more influence? On the customer. With the middleman, it's more difficult, so the world is round. There's no way to do things different. I know we need patience and time, but if the channel, if I have the customer in my hand, and they're more adherent, I increase traffic, average ticket, conversion, and increase sales, you're gonna see in August - August would be even better than the BRL 50 million that we had in July. So it's consequence of what was being done here. You have to understand the strength of B2B, and by default, it's a matter of timing, and time will tell if you come from a negative base, and you become positive, you're growing, right? And then you're going to getting higher and higher. But if we get to the low digit, two digits, I'm happy. So, you're gonna see that when you go through the plant tour. I'm gonna tell you three things. One is very pragmatic and practical, one is for the future, and the third one, more subjective, but with the value of risk. There's a cultural knowledge of management plus autonomy, and we've been learning a lot of that with Soma. Going back to what, Roberto said, we see value in giving space and freedom for people to be entrepreneurs. Second point is a little bit more distant, about international operations. The way that we explain it and implement it, it's not gonna be 2025 yet, because we can't establish strategic plan so quickly. We're gonna leave the American operation of shoes to cool down a bit, but afterwards, we're gonna come very strongly, even in Europe. And more pragmatic, it's a feature that is very relevant, which is... Alisson mentioned, being able to digitalize and put an omni version for the multi-brand stores. So they can sell inventory from the own stores or vice versa, and that's a great idea. Luciana already talked to me today, and I said, "It's not like turning on a TV. It needs a little bit of time," but it's BRL 200 million being invested in the system with the same volume of e-commerce, so this has to be implemented for the beginning of 2025. So these are three examples. I could give you even more. Good afternoon, Rached from Goldman Sachs. Alexandre, the question that you just answered, you mentioned that the direct channel is much easier for you to reach quickly, and the channel where you have middle people is more difficult. Thinking about the strategy for Hering, do you see any risk of changing... cannibalize the multi-brand channel, and this have a more structural impact on the operations? I would like to understand how you see the omni-channel from Hering in 10 years' time, if you try to migrate to DTC or if that's relevant for your strategy. Thinking about the levers that you have for multi-brand, for DTC, putting a unique assortment is relevant, but this not necessarily is 100% applicable to multi-brands that offers more basic products. I want to understand how you think this. I can start answering. First, our coverage model is thought to be multi-channel, exactly to avoid cannibalism. The best example is most of our digital network is not a competitor of the franchisee, but a partner. Hering today, the customers start in digital, and then they go to the brick-and-mortar stores two times the frequency, our omni customers do that. If we look at the markets, we have greater opportunity to grow in multi-brand and in franchise. In the north and northeast and Rio de Janeiro, those are markets very little accessed by digital because of logistics, challenges in shipping and delivering. So there's complementarity in these channels, and they have to be thought that way, integrated. Thinking about the assortment of the multi-brand channel, I think I mentioned we have a segmentation model that is unique, but with adjustments for each region, reality, ethnicity, financial and social profile of family stores, large retailers, small boutiques. So naturally, we have to adjust. When I started going into multi-brand, the most thing we had was white T-shirts, but that's not true. You have legions of consumers that are good consumers of basics, and you're gonna have small boutiques deep in Brazil that like unique products, fashionable products. So we need a very unique and distinguished mix. So we have to be aware of all this to decide on the assortment of the channels. I would like to add two points. First, the relationship is exactly the opposite. When you open a store, a mono brand, you increase brand desire, so that's historical, and that led to our expansion in the past five years. Second, our focus as a company, a multi-brand company, is a great generator of bottom line, because all the expenses to create product and brand are already used in the B2C channel. So when you do B2B, you don't have to increase area or structure. So it's something that I've been highlighting. On Tuesday, we had a great launching for Showroom, and we had the power of all the sales directors of all BUs. We have Mr. Eduardo really investing in Rio de Janeiro. We're gonna strongly work in that direction, and we're gonna be more and more bringing the power of fashion to multi-brand. So multi-brand will be a huge priority of ours. Just to exemplify what Alexandre said, our recent collection of high summer that is being sold in the channels in a region, a city in the northeast, Salvador, where we had a huge gap in performance. We recently opened two operations, one mega in Salvador. We had a calendar of events with local influencers, and this generated a lot of multi-brands. This is where we have the highest delta of growth, and that shows that this strategy and the combination of channels pays itself very quickly. We have time for two more questions due to time constraints. So we can get your questions in writing, and we'll answer them later. Thank you for taking my question. Isabella from UBS. Congratulations on your event. I would like to talk about international expansion, especially Farm, because it's a great avenue for growth, and I think that especially Global has been reaching huge markets. You highlighted some places where you're acting directly, US, Europe, and in others, you're gonna have distributors. If you could detail the strategy, how do you choose the countries? Which ones make sense being there directly, and on those, what are the challenges in terms of brand positioning? And actually, is it just increase and become denser where you're already at, like France and England, or do you start in several countries, consolidating the overall idea? What are you thinking about and how to face these challenges, both of brand, sales, and logistics, when it's through distribution or where you're at directly? The strategy that we had was very clear. First, we went to the U.S. market. We positioned ourselves there with a few stores. We had a very strong e-commerce in the U.S. market, but without possibility, at the speed that we wanted, to open brick-and-mortar stores. We understood, due to capillarity and volume in e-commerce, that we had already planted a very good seed. People already knew what Farm was in the U.S. market, and we went to Europe. When we put our foot in Europe, you opened the world to yourself, who unlocks retail, and the brands in the world that shows these brands is the European market. And then we start. algumas, algumas propostas, como a gente: "Ah, vamos fazer, vamos trabalhar com franqueados nos Emirados Árabes, vamos trabalhar com franqueados na Índia". E que a gente tem sido muito cuidadoso em relação a isso pra escolher parceiros. Escolher parceiro errado, a gente vai ter dor de cabeça. Então, nosso foco hoje, basicamente, é Europa e Estados Unidos. We have a lot of market to gain in those two places. Brand strength and positioning, up, for me, that's completely in Katia's hand. She's the most competent person to carry on that work. She's very smart. She has a team that works with her. And Fabio mentioned about going back to activations. We're gonna come back with activations next year. Not that we need it, but to support the brand in the long term. And the short-term strategy is US and Europe, and then the long-term is going into Asia, but with the right partner, with a very positive negotiation for our side. I was able to follow, I'm very proud to see what Fabio is doing with, his team. Like Fabio made clear in his presentation, there are three countries with high growth: United States, that affects Mexico, then England as a hub with high growth in India and Australia. There are several agreements being established through local partners, like we did in the Middle East with Chalhoub, one of the largest store operators in the Middle East, with exceptional results. So those are the monobrand stores, two incredible spots, and France is still a priority. For that, the beach cities really help. We're thinking about Saint-Tropez for 2025, but the focus is still, Europe and United States. Good afternoon, Pedro Spinelli from Safra Bank. I'd like some more information. So you mentioned the House of Brands. What will be your role? And even when you were talking about the brands that are maturing, the brands that are turnaround, so how much will you oversee that, manage that, to change the meaning of re-signify the brand, or when do you get to the point of direction only, so the brands are going the way that you want them to go? Excellent. Thank you for the question. Maybe you might remember Vidal's presentation. It was very dense. We have governance that's very well-established, be it by the archetype or the management rights that we will implement. So we have a strategic planning cycle, budget cycle, monthly reporting, weekly reporting, and weekly interactions, and also the ones that are every six months. So within that governance, discipline, respecting those rights, we will decide where to invest and how to invest in moments where the brands need more of a turnaround. And Roberto and I are working closely on cases that we showed here. They're the only ones, even though they're just a couple of percentage points, but not growing as they are. So Animale and Schutz are working together, exchanging best practices. They're pretty similar in terms of number of stores, customer profile, product mix... oh, customer profile, and that's how we're going to go through, Azzas 2154. It's very well-structured. We start next week, the budget cycle. It gets very clear here, Farm Rio and Hering as our priorities for 2025. É, acho que em benefício do tempo aqui, então a gente agradece as perguntas. Well, we'd like to thank you for the questions. e agora o Thiago vai começar- and later on, we'll- Bom, o convite é- answer your questions. Thiago? 1 hora. Sinta-se à vontade. A gente vai sair em 2 turnos. We have less than an hour. We'll have two groups. É a líder- If you have a white badge with Tess. If a black, you have a black badge, then you're with Felipe. Vem pra cá! Então, se eu não seguir... Não mexer nesse apoio nos slides, nos slides. Bom, pra quem... Acho que a maioria de vocês os conhece. I think most of you know them. She is our product and business director for women's and kids, and Felipe is for design. One's been with me for three years, the other for four. You know, ele trouxe os atributos Young team, and they have all the necessary attributes for us to build that together. So they're responsible for the product innovation pillar, and not only that. So they'll split you up into two groups: white badges, black badges. We'll see 100% of the area, the prototype center for men and for women. So I'd like you to pay attention to the materials library. So we have development from Hering and third parties. That could be the place where everything is born for Farm, for Hering. See the technical form for creation, you'll see the teams working together in a collection that we recently delivered. So for fall, and focused on geography and everything else, and everything's close together, a continuous flow. As we mentioned in our presentation, all of this is an inspiration of the model, Anderson Birman model, that we saw in Campo Bom that gives agility, speed, and innovation. So I hope you like the routine. And afterwards, we're going to the place that enchants everyone the most and proves the work, which is the stores. We'll have the first contact with the fall collection that go to the stores. So black badge goes first, white, wait here. You'll start in different, different sides. And we'll begin the event where we received you close to the yellow house. That's the first home of Hermann Hering, our ancestor. And a celebration and a toast. A toast. Oh, I thought it was gonna be a gift. Okay, everyone. My last message, obviously, that a merger this big, a merger, that we have to be well aware of, so that we don't miss anything. But I'm leaving this cycle of signing and closing very happy and satisfied, looking at people and, and looking at the brand directors. When I look at them in their eyes, they're very happy with the opportunity. People that have perspectives in gaining in scope and work. The Soma Group is about entrepreneurship, accountability. So today we concluded the closing of the operation, and I'm very happy. Very, very happy, because I think it's the best for our business. This dispute between Soma and Arezzo was, in a way, destructive for both companies, and now together, we add on to each other. There's a number of people that are aware of the cultural aspects. Out of this, companies will have a new culture and we'll see a bit of the best culture of each one and build a new culture. We're happy with the new challenge, with the new moment. It's a new cycle that's opening, and I hope, and I'm absolutely sure, that we will prosper. Because between Alexandre and I, and all the control blocks, there's a clear alignment in the long term. We're all on the same page about what we have to do. So I'm very happy. Thank you for your trust, Roberto. Thank you everyone for participating and coming all the way down to Blumenau to be a part of this baptism, so to speak, of Azzas 2154. Even though we have over 134 years on our path, it's just the beginning. So these conclusions are a result of our thoughts. I won't read them now. They'll be available in the presentation. We worked hard to get this far, and the teams are in line, ready. Synergies are clear and mapped out, governance is well-established, and the alignment is well done. You can count on us. We'll work hard with a lot of work, passion. We'll fall, we'll pick ourselves up again and do a great job, and on the path to 2154.