Good morning, ladies and gentlemen. Welcome to Minerva's video conference to disclose the results of Q4 2022 and the year 2022. Today with us are Mr. Fernando Galletti de Queiroz, CEO, Mr. Edison Ticle, CFO and IRO, and Ms. Tamara Lopes, executive sustainability manager. We inform you that the presentation is being recorded with simultaneous translation into English. The translation is available by clicking on interpretation. For those listening to the video conference in English, you may silence the original audio in Portuguese by clicking on mute original audio. The presentation is available for download from ri.minervafoods.com under presentations. During the company's presentation, all the participants will have their microphones disabled. Later, we will begin the Q&A session. To ask questions on audio, click on the Q&A button and state your name and company. Once your name is called, you will receive a request to turn on your mic and ask your question. Questions may also be asked in writing by clicking on the Q&A button and stating your name and company. We would like to clarify that any forward-looking statements that may be made during this video conference relate to Minerva's business outlook, operational and financial targets, which are based on the projections of the company's management and may or may not occur. Investors should understand that political factors, macroeconomic factors and other operational factors may affect the future performance of the company, thus conducting to results which differ materially from those expressed in such forward-looking statements. To open this video conference, I now turn the floor over to Mr. Queiroz, CEO. Good morning and welcome, thank you for participating in this video conference to disclose the results of Minerva Foods for Q4 and the year 2022. We closed the year demonstrating its operational, commercial, and financial excellence, delivering a sound set of results which demonstrate our sound corporate strategy and consolidate our leadership in South America as one of the main players in the global animal protein market. Despite the volatility in 2022, through our consistent focus on operations, Minerva again was able to deliver a good operational and financial result. We prioritized cash generation, a sound capital structure, and the creation of value to our shareholders. In 2022, gross revenue was approximately BRL 33 billion, and adjusted EBITDA was BRL 3.1 billion. That is a net income of BRL 655 million, generating cash flow of BRL 647 million in the year. Additionally, our balance sheet at year-end had its lowest leverage since 2007. Net debt over adjusted EBITDA was 2.15x, which reflects our strategic direction towards maintaining a sound capital structure. In 2022, we continued to diversify geographically to mitigate against risks and increase opportunities. At year-end, we further consolidated our footprint in Australia with the acquisition of ALC. More recently, in the beginning of 2023, we increased our portfolio in Uruguay by acquiring BPU Meat. We also moved forward in our sustainability agenda and have delivered on the commitments as assumed during the year. We have now become a benchmark company in the animal protein sector, which attests to the quality and integrity of our products and allows us to access the international market for beef. We also made efforts in the carbon market through the Renove and MyCarbon programs, looking for a more productive and efficient chain with lower carbon emissions. In terms of value generation for the shareholders, we would like to highlight the dividends, which at the end of 2022 should total BRL 337 million, that is BRL 0.58 per share. The payout was consistent for the third consecutive year and is one of the main drivers of our business strategy. Again, it attests to our commitment to generate value for the shareholders. Before moving on to the results presentation, I would like to talk a little bit about our views for the global outlook and how our strategy and business model allows us to be in a unique position to capture market opportunities. The international animal protein market, especially beef, has very positive outlook and a sound foundation, especially in South America. The increase in availability in animals ready for slaughter, together with the restriction in the American market, allows us to have unique opportunities for exportations. There are sanitary difficulties in some of the main product producer regions. Such as the outbreaks of African avian fever, swine fever, and avian flu in America, Europe, and Asian countries. There is also a very volatile market in the grain market. This is a favorable context for South American exports, especially for those who are located in different geographies. The global offer of beef is increasingly restrict. This should further increase with the restrictions in North America. According to the USDA, there will be a reduction of approximately 10% in 2023 alone. On the other hand, there is increased availability of finished cattle in Brazil. This creates great expectations for 2023, 2024, and contributes to make South America, with its grass-fed cattle, to be more competitive internationally. We should have new commercial opportunities, such as the recent approval of Brazilian beef for exports to Canada and the new plants that have now been approved for the Indonesian market. The next few months should be impacted with the opening in China. The consumption is going to go up and put pressure on importers' inventories. Food service and institutional consumption in tourism and events are gaining traction week after week, and this should have a positive impact on volumes and export prices, especially as of Q2. Again, speaking of our results, we were very strong in the distribution in the domestic market. We are selling more to food service, niche and premium markets. Q4 always sees a higher consumption, in 2022, this was further heightened because of the World Cup. There was more consumption, this allowed us to perform better in the domestic market. We are also working on innovation under our corporate venture capital pillar, we have invested in start-ups such as Foodtech Liv Up. We have also been focusing on e-commerce and marketplace, which help us become closer and closer to end consumers, thus allowing us to have a better distribution to the domestic markets. We are also working on advanced analytics and focusing on data analytics of tools and artificial intelligence, which allow us to have greater precision and speed when analyzing scenarios and tapping arbitrage opportunities. This mitigates against risks and allows us to maximize our commercial and operational efficiency. On slide two, I'm going to give you the highlights for Q4 2022 and the consolidated figures for 2022. In terms of gross revenue, it was BRL 7.3 billion in Q4 and reached BRL 32.9 billion at year-end, a 15% growth year-on-year. Exports totaled 69% of the gross revenue in 2022, a 17% growth year-on-year, and is one of the main factors of the company. The performance of our exports reflects the global demand for beef and attests to our commercial expertise in serving the international market. We are now going to talk about our operational profitability. EBITDA Q4 was BRL 608 million, and the margin was 8.9%. EBITDA in 2022 was BRL 2.8 billion, an 18% increase with an EBITDA margin of 9.2%. Adjusted EBITDA includes the performance of ALC in the year 2022 and was BRL 3.1 billion. In terms of net income, it was BRL 655 million in 2022. We also generated BRL 647 million in cash and allowed us to maintain the dividend policy. Again, I highlight the operational, commercial and financial excellence of Minerva Foods, and especially our competitive advantage coming from our geographic diversification, which allows us to arbitrage different markets. This allows us to control risks and ensure greater profitability. In terms of capital structure, in Q4, net leverage was 2.15x, measured as net debt over adjusted EBITDA, the lowest since 2007. This liquidity is comfortable. We have 7.1 billion in cash and a debt duration of 4.8 years, which allows us to feel comfortable and have great flexibility. We are also improving our capital structure, and in the quarter we repurchased $14 million relating to the bonds maturing in 28 and 31. Year to date, we repurchased and canceled BRL 1.1 billion in debt, which attests to our commitment to a sound capital structure with a better risk profile. Edison is going to give you a little bit more color about that. In the quarter in December, we advanced in terms of geographic diversification by completing the acquisition of ALC. We are now the leaders in the lamb and mutton market in Australia. We also announced the acquisition of BPU in the beginning of January, which increases our footprint and capacity for arbitrage. These initiatives are part of our strategic direction. We want to increase our footprint to maximize commercial opportunities to achieve operational synergy and to consolidate our position in the market. Our ESG agenda has also improved, and in Q4 we saw great achievements. 100% of conformity in the audit carried out under the supervision of the Federal Public Prosecution Office in Pará. We have also moved forward in terms of the carbon agenda, which is very important for us. At the end of October, our subsidiary, MyCarbon, sold 20% of all the carbon credits negotiated in the first auction of the voluntary market organized by the Sovereign Fund of Saudi Arabia. This is one of the pillars of our business model. We also develop strategic actions to generate value in the carbon market. Tamara Lopes is going to give you a little bit more color about our progress in that agenda. As I said, we made yet one more investment in our corporate venture capital initiative and invested in food tech LivUp. This increases our exposure to marketplaces that are niche markets and have a high potential for growth. One of the main pillars of our management, the generation of value to the shareholders. In 2022, in line with our dividend policy, the management is going to propose in the shareholder meetings to be held in April, the payment of complementary dividends amounting to BRL 208.6 million, BRL 0.36 per share. In addition to the BRL 128 million disbursed in August, Minerva will distribute BRL 337 million. That is BRL 0.58 per share in dividends to our shareholders. A payout of approximately 50%. For the third consecutive year, we have distributed dividends in a robust way and have proved that we can have financial discipline and create value at the same time. On slide three, I'm going to talk to you a little bit about the operational and financial performance of Minerva. Once again, at the end of 2022, we saw our position consolidated as leaders of beef exports in South America. We hold a 20% market share in the continent. This reflects one of the main competitive advantages of our business model. Geographic diversification, which increases our ability to arbitrage market distortions and allows us to maximize our competitiveness in the global market. You can see more details about the exports consolidated for 2022. Asia was the main destination. Totaled 50% of the revenues, with China accounting for 43% of the total, followed by the Americas, the Commonwealth of Independent States, Europe and the Middle East. You have the breakdown of the gross revenue for Q4. Unlike other quarters, Asia was not the main driver of revenue for the company, which was a consequence of the strong restrictions imposed by Chinese authorities and impacted the performance of the continent. We also increased our domestic distribution, and this was especially important at the end of the year. The Americas was therefore the main driver of gross revenue and accounted for 42% of the total, with a highlight for Brazil and China. We have great trust and expectation that the Chinese market will go back to a kind of normal at the end of in the next few quarters, and this will drive up the prices and volumes of beef in the next few quarters. We are very optimistic in relation to beef, the beef market. Because of our diversification and the inclusion of Australia, we have now an increased access to the international market and have maximized opportunities for arbitrage among markets with a focus to reduce risks and increase profitability. The outlook is therefore very promising, and the strong imbalance between supply and demand allow us to have relevant opportunities. There are high scale markets such as the Asian market, premium markets such as Canada, the United States and Western Europe. The outlook is also good in Latin America, Middle East and Eastern Europe and Africa, which traditionally have more volatility and present better opportunities for arbitrage and maximization of value. We continue to focus on our strong business model, maximizing our competitive advantages, investing in innovation and niche opportunities, risk management to allow us to have more efficient logistic and commercial solutions, focusing on value generation and our chain of stakeholders. I now turn the floor over to Tamara. Good morning and thank you, Fernando. In 2022, Minerva Foods moved forward in its ESG agenda. We want to be carbon neutral by 2035, as established in our commitment to sustainability of 2021. The company led efforts to fight illegal deforestation in South America and climate change. We have been pioneers in combating illegal deforestation in the value chain, and we were the first company to monitor 100% of the direct suppliers in Paraguay in 2021. In Brazil, the company already monitored 100% of its suppliers in all the biomes where we operate. In Q4, the company moved to monitor direct suppliers in Colombia, where now 80% of the suppliers are monitored, and we want to achieve 100% by the end of 2023. In Argentina, 90% of the suppliers are monitored, and we plan to achieve 100% by the end of 2030. In Uruguay, we have completed the mapping out of the local, social, and environmental legislation. The geo-monitoring system used by Minerva had its efficacy proven in authorities in audits carried out by third parties in 2022. Minerva Foods again achieved 100% of conformity under the Conduct Adjustment Term of the State of Pará. This is an audit carried out under the supervision of the Federal Public Prosecutor's Office. It's one of the best results amongst the major players in the market. In 2022, for the ninth consecutive year, we achieved 100% of conformity under the Livestock Public Commitment signed in 2009, and 100% of conformity in the third audit carried out by third parties in Paraguay. All the reports of these audits are public and may be accessed on our webpage. The company has demonstrated its efforts to improve the traceability in the value chain in 2022, and we have increased the engagement and training of our ranchers as regards the use of SMGeo Prospec, which allows detailed surveys with access to the history and conformity analysis from a social and environmental point of view. This helps our partners map out risks before carrying out any sales. In 2022, the company distributed to partner ranchers more than 800 free vouchers for using the app. At the institutional level, Minerva Foods was awarded recognition for the development of its ESG agenda and for the quality, clarity, and transparency of the information provided on its 11th sustainability report. The company was awarded the Best Sustainability Report award organized by ESG Investing under the Consumer Goods category and was among in the Best in the World award promoted by Hallbars Sustainability Research Organization. In external assessments, the performance of the company at the environmental level was analyzed in Q4 under the Carbon Disclosure Project and achieved the same level achieved in 2021 under climate change, forests, and water security. With this result, Minerva Foods has been included in the portfolio 2022/2023 in the CDP Brazil Climate Resilience. For the third consecutive year, the company was also listed under ISE B3 and CO2 and Carbon Efficient Index ICO2 B3. On slide five, we see the results achieved throughout 2022 under the Renove, a program that engages ranchers to implement low-carbon emissions cattle growing. Through Renove, Minerva Foods exported CO2 Neutral certified beef to clients in the United States, Spain, Italy, and Chile. Partner ranches, the company's plants and logistics operations had their carbon footprints audited and certified with CO2 Neutral by an independent organization with certification systems valid in more than 100 countries. The offsetting of emissions needed to neutralize all the process was sold by MyCarbon through carbon credits coming from tree planting and forest preservation projects. Additionally, the Renove program was also pioneer in generating and selling carbon credits coming from livestock in Brazil. To that effect, cooperation agreements were signed with ranchers which supply to Minerva Foods, which ratifies the interest of both parties to convert from traditional husbandry practices to regenerative practices, which increase productivity and either remove or reduce GHG gas emissions. In December 2022, we published the study Potential for Mitigation of GHG Emissions in Livestock: The Minerva Foods case study. This was carried out by Embrapa and FGV Agro. Get balances of 23 ranches which provide the company, and they were calculated using GHG Protocol Agropecuário, thus showing the potential of good practices to contribute to fighting climate change. MyCarbon, a subsidiary of Minerva Foods. Minerva MyCarbon has sold 20% of all the carbon credits in the first auction of the voluntary market carried out by the sovereign fund of Saudi Arabia. It was the first initiative of the carbon voluntary market in the region, a total of one million tons of GHG were sold as carbon credits, which are audited and certified. Lastly, in Q4 2022, MyCarbon signed a partnership with Mercuria Energy Trading, one of the major actors in the energy market and climate solutions to generate carbon credits from more projects in the Amazon. The partnership attests to MyCarbon's ambition to create financial opportunities to preserve nature, thus furthering actions to fight climate change for a low-emissions future. We continue to focus on achieving the targets and objectives established in our commitment to sustainability. All the information is updated about our ESG agenda, this information may be found on our site. We are committed to transparency. I now turn the floor over to Edison, who's going to give you details about our operational and financial results. Thank you, Tamara. We are going to slide six. In terms of operational performance and gross revenue in the quarter and in the year, the external market accounted for 62% of the gross revenue in Q4, and 69% for the year. In terms of breakdown per region, exports from Brazil achieved 62% in the quarter and 70% in 2022. In the international operations, exports accounted for 68% of gross revenue in Q4, and 73% for the year. At year-end, there is more consumption in the domestic market as a result of holidays, Christmas holidays, and also the positive impact of the World Cup. On slide six, as you can see on the right-hand side, you have the breakdown of revenue by origin. Brazil is a big highlight. It accounts for 47% and 49% of the gross revenue, respectively for the quarter and for the year. Under others, we have the former trading division and also our activities in Australia. As of Q1 2023, we will also give a breakdown of the Australia information as we do for other countries. Here we see the benefits of our strategy towards a geographic diversification, which allows us to arbitrage market. This strategy will be even more consistent with our footprint in Australia. On slide seven, you see the net revenue, which was BRL 6.8 billion in Q4. In the consolidated for the year, net revenue was BRL 31 billion, a 15% year-over-year. EBITDA was BRL 608 million in Q4, an 8.9% margin. In 2022, EBITDA totaled BRL 2.8 billion with a 9.2% margin. The adjusted EBITDA, which includes the ALC performance in 2022, was BRL 3.1 billion a year. In Q4, we saw lower prices and volumes in the Chinese market because of the restrictions imposed due to COVID. This had an impact on the performance, especially in October and November. With the flexibilization of restrictions in China, we are optimistic for the year. The resumption of the Chinese market is gaining traction. There is an increase in food service, mobility of people, and there are more events and other drivers which accelerate consumption. Also, as you know, the stocks are very reduced and inventory is very reduced. There should be a gradual recovery in the next few weeks, which should contribute to drive volumes and prices up, especially after the second quarter of 2023. There are also problems with the supply in the States, and this allows us to be positive. Although in the short term, there might be problems in Brazil because of the atypical case of BSE. But if we look at the next two-three quarters, the situation, the outlook is positive. The scenario is one of optimism. Despite the restrictions that may be made on Brazil, our footprint allows us to export to China from our operations in Argentina and Uruguay. On slide eight, you see our leverage measured as net debt over EBITDA and also adjusted with the pro forma EBITDA ALC. This was 2.15x the lowest since 2007. The adjusted EBITDA reflects the organic performance of Minerva, plus the BRL 262 million of EBITDA of ALC in the 10 months before the consolidation. The adjusted EBITDA for 2022 is BRL 3.1 billion. We have been able to reduce our gross leverage, which in 2018 was close to 7x, and in 2022 is now 4.8x. We have been very disciplined in improving our capital structure, in reducing leverage, looking for a better risk profile. This is a commitment of our management and we have been very successful. We are known now as a company that has a healthy capital structure, generates cash and pays dividends. This also came from the repurchase of bonds since 2018 and 2020 to date. We repurchased BRL 2.6 billion in bonds and canceled them. We reduced debt and we managed to deleverage, and this was helpful to help us deleverage. On slide nine. You see that at the end of 2022, net income was BRL 655 million, a 9% growth year-on-year. The performance in the quarter was impacted by the restrictions in the operations with China in Q4 2022. On the right-hand side of the slide, you see the operating cash flow, which was positive in BRL 1.1 billion, and the consolidated for 2022 it was BRL 3.1 billion. Even if we consider the strong growth in revenue in the last few quarters. On slide 10, we are going to talk about free cash flow, which in Q4 was positive in BRL 268 million. If we exclude the effects relating to the completion of the acquisition of ALC. If we build up the free cash flow in the quarter, we start with BRL 608 million in EBITDA, CapEx BRL 289 million in maintenance and expansion in the operations outside Brazil. We have working capital, which was positive in BRL 470 million in the quarter because of a small exposure to China, and therefore the cycle is shorter and this protects working capital. The financial result was BRL 520 million negative, which was impacted by the foreign currency hedging, interest hikes, interest rate hikes, which have been taking place in Brazil, and the free cash flow was BRL 268 million. The net impact of the acquisition of ALC on our cash flow was negative by BRL 401 million, which reflects the investment made of BRL 802 million, and also the positive working capital of BRL 402 million. After the adjustments, we have a negative figure of BRL 133 million. For the year, free cash flow was approximately BRL 647 million and includes all the impacts of the acquisition of ALC. We start with BRL 2.8 billion. CapEx was BRL 1.7 billion, which includes the disbursement of BRL 802 million for the acquisition of ALC. We have BRL 878 million coming from working capital. If you add all the various variables, we have a free cash flow of BRL 647 million in 2022. Despite the negative impact of BRL 401 million due to the acquisition of ALC, the net cash was BRL 663 million in the year. The result of the free cash flow does not include the BRL 328 million in dividends, which we distributed in the last 12 months. Our commitment is towards generating value to the shareholders. In the last five years, the company generated BRL 5 billion in free cash flow. If we look back to 2020, we generated BRL 3.5 billion, and we have paid out BRL 1.1 billion of those. This should be added to BRL 208 million in complementary dividends, which will be distributed in 2023. We have worked to reduce leverage, to improve the capital structure, and to generate value via payout of dividends. On slide 11, you see the bridge of the net debt. At the end of the previous quarter, net debt was BRL 6.5 billion. You see the free cash flow, BRL 268 million. We had the non-cash effect of BRL 182 million from derivatives, which increased our debt, and we had the non-cash effect of BRL 98 million, which have to do with the currency variation of the portion of our debt which is denominated in foreign currency. We have the net impact of the acquisition of ALC, which increases our debt. After we set up the bridge, Minerva closed the quarter with a net debt of BRL 6.7 billion, slightly above the debt of Q3. Our financial discipline and our pursuit of a sound balance sheet will continue to be a priority in 2023. Fernando and myself have been very vocal about maintaining a healthy balance sheet and capital discipline. We feel comfortable to continue to focus on operational execution and our strategies to create value for the shareholders while maintaining a very well-structured and healthy balance sheet. As I said previously, net leverage at the end of the quarter was 2.15x, the lowest since 2007. If we exclude the positive impact of the yearly EBITDA of ALC, net leverage would still be very comfortable at 2.3x. The position at the end of Q4 was very comfortable. We had a cash position of BRL 7.1 billion. In terms of debt, 56% of our debt is denominated in foreign currency. We have a hedge policy whereby we maintain 30% of the long-term exposure is hedged, and this has been very efficient, especially given the recent volatility in Brazil. The duration of the debt is five years, and 85% of the debt is in the long term, as you can see in the amortization flow. On the right-hand side, we show the liability management efforts that we have been implementing. I said in the last few calls how active we have been in repurchasing bonds. We did the same this quarter. We repurchased and canceled bonds maturing in 2028 and 2031. This amounted to $14 million. Looking back in the year, we repurchased and canceled over BRL 1.1 billion. In the last three years, we did so for BRL 2.6 billion. We continue to pursue a less costly capital structure with a better risk profile, which reflects our commitment towards financial discipline and generation of value to the shareholders. On slide 13, you see a little bit about our initiatives to generate value for the shareholders, which is one of our priorities. In line with the good financial and operational performance of the company and respecting our policy regarding the income, we announced that Minerva Foods is going to propose to the shareholders meetings the payout of complementary dividends for BRL 280 million. That is approximately BRL 0.36 per share. Once approved by the shareholder meetings, this dividend should be paid in the beginning of May. We have been trying to maintain a healthy capital structure and increase our capacity to generate value for the shareholders. On the left-hand side, you see a summary of the payouts of this year, BRL 336.7 million or BRL 0.58 per share. This considers the early dividends paid in August and the complementary dividends, which are going to be approved hopefully by the meeting in April. In the last three years, Minerva distributed BRL 1.3 billion or BRL 2.30 per share, thus abiding by its minimum payout policy of 50%. This is in line with our strategy to generating value to the shareholders. Additionally, if we consider 2020, 2022, we paid out $2.8 billion in repurchase of shares and bonds in the market, and we are also creating value for the shareholders by repurchasing shares and debt. Financial discipline and our commitment to a balanced capital structure has been respected even when we make acquisitions and grow. This is one of the main pillars of our company. To end, I would like to say that Minerva Foods aims to be a company that pays out dividends, and this is only possible with the dedication of our team, with our focus on generating cash and improving our capital structure. This allows us to pay out dividends to our shareholders in a consistent manner. I now turn the floor over to the operator to begin the Q&A session. Before we begin the Q&A session, I would like to turn the floor over to Mr. Queiroz. Good morning. Before the Q&A, I would like to give you an update about the atypical BSE case in the state of Pará. Last week, a rancher reported the death of an animal in a ranch. It was not in a processing plant. This has given rise to the protocols of OIE. According to that protocol, we are required to send in proof, and the result has been given. It's an atypical case of BSE, we are waiting for the counter proof. This should have no effect for countries, sorry, which import Brazilian meat. China has a special protocol, according to this protocol, Brazil has to take some attitudes. The Chinese ambassador was officially informed today by the Minister of Agriculture. We are now waiting for the counter proof. A Brazilian mission is going to China. We don't think this should have any major impact on our exports to China. The issue here is not having the problem, but how Brazil deals with the problem. The Ministry of Agriculture has been extremely diligent and acting very decisively in dealing with the problem. I would like to give you also some good news. We just received information through the press that Brazil is going to be able to export to Mexico. It's a major. As you know, there are restrictions in the finished animals in America and now Brazil will be able to export to Mexico. This will enable us to grow our share in exports to South America. I now turn the floor over to the operator so we can start the Q&A session. We will now begin the Q&A session. To ask a question, click on Q&A, state your name and company, and once your name is announced, you will receive a request to turn on your mic, and you can then ask your question. Questions may be also asked in writing. After stating your name and company, write your question on the Q&A icon. First question comes from Mr. Ricardo Alves from Morgan Stanley. Good morning. Morning, Fernando, Edison. Thank you for the call. Edison's comment was very interesting in one of his remarks about the inventory in China, and I would like to focus on China once more. Before the BSE case, can you tell us what you saw in your negotiations with Chinese traders? We see lots of news, at least before, what happened yesterday. We see news in terms of prices being 10%-15% higher. Have you noticed this? Do you think there's going to be a new level of price? In addition to the inventories which Edison said are low in China, what is the main difference? Is it timing? It was in September 2021 that a similar situation happened. Now we are going to talk about February. What do you see today that could trigger a faster recovery in addition to the inventories being low? About Argentina, the performance in Q4 in terms of revenue, there was a 50% drop from one quarter to the next, this was a big surprise. There was an adjustment to happen, the volumes were lower than we expected. Can you give us a little bit more color about what happened in Argentina? What is the outlook for 2023? We saw a spike in the local market, a spike in the price of cattle in the local market. What's going to happen in the future? Thank you. Good morning. Edison and I are in Dubai, it's afternoon, we are closer to China. We have been here for the last five days with the major Chinese clients, traders. What we see is that there was an effect in the price. There was an increase. Since the announcement was made on Wednesday, the price per ton increased by $300-$400 per ton. The market is optimistic. China is now recovering from the lockdown. People are moving around, traveling, and food service is shooting up. Beef consumption has increased as well in the households. It's good to see what food service industry thinks about it. The meat packers, the processors, the retailers also are saying that the outlook is positive. Their inventory is low. What happened since the end of the year with the restrictions, we saw less shipments to China, and the pipeline takes from 90-120 days. We see that they, in China, are concerned about this. The prices are therefore being driven up. As regards the opening regarding BSE, the Minister of Agriculture has been very active, has been very good in managing the situation, and China is one of the priorities of the new government in Brazil. The President's agenda includes a visit to China, which should happen at the end of March. This tends to have a positive impact from a political and commercial point of view. This should shorten the timings, and China should be consolidated as a good partner. And as for Argentina, Ricardo, I have been talking to you about our concern about the macroeconomic situation in Argentina, measures that the government had been implementing to discourage exports. Our reaction was to reduce the operation as regards the fresh beef for exports. We stepped up the processed beef operations. The margins are good. We worked with the trading down that happened in the country, and we actually benefited from it. We should continue that way unless we can see things improving in the profitability in terms of exports. We are focusing now in Argentina in processed beef and processed products until we have greater visibility relating to favorable conditions for exports. We are not going to put any capital or operational efforts into exports. Cattle now is a reserve of value in Argentina. They are expecting a devaluation of the currency. The cattle in Argentina is the most expensive in South America. We are now working with other origins to arbitrage them, that market. Thank you, Edison. Thank you, Fernando. The next question is from Mr. Troyano from Itaú BBA. Good morning, Fernando, Edison. There are some points I would like to explore about ALC. First one is about the outlook. The EBITDA for the year was above what you expected, as disclosed in the material fact you disclosed at the time of acquisition. What is the outlook relating to an improvement in margin relative to the cycle or synergies for 2023? Also still about ALC, the GNA has increased in the quarter. Does this have to do with any integration costs, past M&A? The last question has to do with the allocation of capital. Does Australia still make sense? The ban may not last as much as it did recently, given what you have said, but is there an intent still to diversify, especially in Australia, which is a region you have showed interest in in the past? Thank you for your question, Gustavo. This allows me to explain some things relating to ALC. The surprise happened at the sales front. Prices are higher than we expected if we look at the niches ahead, especially lamb produced in Australia. As regards the numbers, the hike you saw in SG&A, BRL 25 million-BRL 30 million, has to do with expenses like advisor fees, lawyer fees, auditor fees, some government taxes and rates, which we have to pay in Australia, and this amounted to BRL 25 million-BRL 30 million. This canceled off the effect of ALC in the EBITDA. If I had adjusted the EBITDA for these non-recurring expenses, I mean, we decided to be very conservative. If I had been more aggressive and had made the adjustment, the EBITDA would have been BRL 638 million. These expenses canceled out the income we got from ALC in two months. People are saying, "Oh, the results were even worse because you have ALC." The answer is no. This EBITDA comes from Minerva without ALC. The EBITDA that ALC contributed was canceled out, so to speak, when we recognized these expenses that had to do with the deal. As regards the strategy, we look at Australia, as we said before, in terms of geographic diversification, in terms of strategy, it makes sense. These, ad hoc events don't change the strategy. There's also something relating to the cycle. Australia now has the largest herd of lamb in the last 15 years, 80 million. Australia is therefore very competitive. The export platform is very strong, and we can penetrate more markets through Australia. It's one of the other synergies, is the commercial structure that we have, especially in countries where the ALC didn't have a lot of presence, like the Middle East and other markets. Minerva has become a one-stop shop. We have lamb and beef, and our teams work with a more complete portfolio, a better one that creates synergies. Within Australia, there were lots of intermediaries, and one of our strategies is to disintermediate these clients. We want to be closer to the customers. Geographic diversification is one of the pillars of our strategy. Thank you for the answers. The next question comes from Mr. Almeida from Santander. Good morning, Fernando, Edison. You talked about Uruguay. We saw what happened in the second semester of last year. There was less slaughter, but things seem to have improved. Can you give us a little bit more color about Uruguay and about what's happening in terms of strategy? What is the availability of finished animals there? What do you see in Uruguay? As regards to hedging, you said in the release that 30% of the FX exposure is hedged relative to 40%, which used to be the case before. Why is that the case? Is it related to the cost of hedging, which is now higher? What was the impact of that on your financial results? If I may, in regards to ALC, which new markets are going to be open with ALC? You talked about India. Which new markets can you now penetrate, apart from the Middle East? Do you see any major disruption in other markets? I'll take the ALC question. We are in Dubai and in a trade show, which is the most important for the food sector, including beef. We have launched Minerva's lamb. It's not only ALC, we have two other plants, so we have four plants now. ALC focused on the U.S., Japan and Korea, which are very important markets. We are disintermediating these sales. We saw how this drew attention of over 100 companies, including from India. These companies were at the launch of Minerva lamb. We saw the potential not only for us to be present in more markets, but also to tap the synergy and sell more beef as well. First, about Uruguay. We have said in other calls that the outlook for Uruguay is good for 2023 in terms of cycle, availability of finished animals. We have seen that as of Q4. The adjustment in the slaughter numbers, again, allowed the margins to improve. We are very optimistic in terms of finished animals. Just to give you an update, we believe that at the end of Q3, we will have all the approvals needed. We can close the deal with this company that we acquired in Uruguay. There is also more drought, and this may put pressure in the prices. This may increase profitability, but it depends on how the weather is going to impact the pasture in Uruguay. The drought must be more severe than before. The outlook in Uruguay is good. There is a reversal in the cycle. 23, 24, 25 should be positive in Uruguay. In terms of the hedging, we have a hedging policy that includes a matrix that has to do with the exposure of the company, the leverage and the cost of hedging. The cost of hedging has gone up. The spread is huge. The interest rate differential is huge, and because of the cost of hedging, we have to choose a new level of hedging. Because the leverage was below 2.5 and the hedging was above 8% per year, then we become less conservative in terms of hedging. According to this matrix, we took the hedging level from 40% to 30% to decrease the costs. The cost of BRL 198 million in the quarter is composed first by an appreciation in the currency of 20% and then the carry cost, which is above 8%. Practically 1% a month, in three months, 3%. This is a very gross calculation. If you take into account the appreciation, the loss of capital and the cost of carry, you have a fairly high cost. We are very efficient in rolling over the hedge, the NDF, and now the minimum is 30%, given the cost and the company's leverage. There is no additional cost. We do this on the average point for the quarter, when we realized that the rolling of the hedge was above 8% a year. Thank you. That was very clear. Our next question comes from Mr. Tiago Duarte from BTG Pactual. Thank you, Edison, Fernando. Good afternoon. I would like to focus on the prices. You seem optimistic about the prices in China. The delay is also a very clear issue. I would like to focus on volumes. Quarter-on-quarter, we saw the volumes drop in all the divisions except for Uruguay, which has to do, I think, with what Edison said. There was a decrease in the slaughter numbers by 3%. This drew my attention. Could you tell us how much this drop in numbers have to do with Argentina? When can we expect a recovery in the slaughter given the availability of cattle? This should be going up rather than down. I would like a little bit more color about the volumes. SG&A. Speaking of S, I would like to focus on freight. If we look at the freight market today, I would expect a certain normalization in the beginning of 2023. Should we expect freight as a% of the sales expenses go down in the beginning of the year? These are my questions. Thank you. As regards volumes, there's nothing structural. It has to do with the situation in Brazil. We have the problem with China in October, November because of the lockdown measures and so on. In Paraguay, there were problems with the weather, and we had to slow down the slaughter. In Uruguay, I have explained those already. The drop in slaughter was higher than 13%. This is. This has to do with the situation. Structurally, the scenario is the same. We expect to increase the volumes this year. It's not guidance, but if we look at the market, we believe in 2023 we can have the same kind of growth that we saw in 2022, 10%, 15% in terms of volume, in the organic part of Minerva without taking into account ALC, and we maintain that. This is part of our budget. Again, Q4 was affected and Q1 is going to be affected by different situations. It's not a structural problem. In terms of freight, in the sales expenses, if you look at the numbers in Q3 and compare them to Q4's, there is a reduction that can be seen. As a percentage of the revenue, because the revenue was lower, the impact was greater. We don't foresee further increases in freight prices. There should be a normalization there. We don't expect any surprises there. Just wrapping what you said about volumes and prices, it's no guidance, I understand that. But I'm just trying to understand the top line. You believe it is reasonable to talk about prices year-on-year, 2023 to 2022, with volumes growing 10%-15% in organic terms? Yes. Given what we see in the market, if I'm conservative, I think the average price of freight... Being conservative, if you look at what happened here in terms of the increase in prices that we saw, the prices this year should be higher than the average price last year. If we want to be conservative, and we think in terms of flat prices, the volumes should grow between 10% and 15% this year. There is a major reduction in the United States, 10% in production, and this will create a huge gap in the beef market, in the protein market. Somebody's going to supply. Opportunities are going to be created somewhere in the world, and we will most certainly be able to supply this market, these gaps. If we are conservative, we can say that we can expect a growth in volumes in the order of 10%- 15%. Next question comes from Mr. Palhares from the Bank of America. Good morning, Fernando. Good morning, Edison. I have two questions. On the financial side, there was a smaller demand of China in Q4, and this had an impact on the working capital. What has changed? How does that change? Edison gave details in terms of cash generation, and we know how important this is for the company. How has this changed, if we take into account China? The company has repurchased bonds. As we compare the bonds, sorry, with Minerva's peers, there is still an opportunity in terms of debt. When you look at the scenario where the leverage is low and a scenario with exports, where there are problems and countries facing problems, do you think it is possible to continue to repurchase the bonds and thus lower the average cost of debt, or is the company going to wait until the interest rate changes? In terms of working capital, I gave a little bit of an explanation about what happened. China has a cash conversion cycle which is longer. Once you reduce the sales to China or you sell elsewhere, you have more working capital available, especially when this happens in the beginning of the quarter. The average term for China is 40, 50 days. If that happens at the beginning of the quarter, you have more working capital available. With a strong recovery of China, this may require more working capital. You have to work on the ROIC, on the R-O-I-C. When we look at the operations in China, the return is higher than other operations. It makes sense to invest that capital, especially considering our leverage, which is at very comfortable levels. As regards repurchases, we are active. We will continue to repurchase bonds. The current situation opens more opportunities for us to repurchase bonds. This, together with the canceling, allows us to improve the financial cost. In the last two, three years, we bought back BRL 2.6 billion in foreign-denominated debt. We canceled that, but the basic interest rate in Brazil went up, so it doesn't make much sense. If you look at the financial expenses, it is more or less flat, even with an increase in the Selic rate by 800, 900, 1,000 base points in 18 to 24 months. We repurchased bonds, we reduced our financial expense, but that was more or less offset when the money became more expensive in Brazil. I can only think about repurchase in the future because rolling debt in the international market doesn't make sense. The base rate is higher, the risk premium is higher. What makes sense is to use part of the operating cash to repurchase bonds and reduce financial costs. The next question comes from Leonardo Alencar from XP. Hello, Fernando Edison. It's two questions. One is a follow-on about Argentina and Uruguay. Just to help me understand a little bit more about the industry, Argentina is more limited in terms of meeting local demand and Uruguay as well. Is it the same thing for other players? Could this reduce the supply in the market to serve China? In terms of portfolio, what is the portfolio like in terms of China? How can industries capture this opportunity? The other question has to do with the price of animals. This has gone down. In the future markets, it has gone down. In 2021, there was a bigger effect in terms of the interruption of supplies. In terms of the cycle, is it ranchers that are going to lose out the most and you're going to maintain your margins? First, about Argentina. Argentina and Uruguay. Uruguay has the capacity to supply. Argentina has the capacity, but the regulatory situation there is based on quotas now. There is a potential. Remember, the market believes that there is a limit of time, which is not that long, for China to recover and to be again an export destination for Brazil. As regards Argentina and Uruguay, in the next four years, we are going to see a reduction in the supply in the United States, and Argentina and Uruguay are going to take up that space in those markets which are supplied by the United States, and that includes, of course, the domestic market in the United States. We are optimistic with Argentina and Uruguay. The question there has to do with the quotas that were imposed by the Argentine government. In terms of the price of cattle, the supply in Brazil, we had years of ranchers retaining the animals and now there is a greater supply. We believe that the supply is going to be good in terms of the supply of cattle. The market should be more stable despite the issue with China that could affect us. Just one more thing about United States. Had the quota been fulfilled? Has anything been done to tap that opportunity? There is a quota for South American countries to the U.S., but there are also the markets that the U.S. won't be able to export to. There are opportunities in both ways. The price differential, the price gap is growing so much that some products are now feasible outside the quotas, even if you consider the tax. Some products now, if you compare them with the domestic market prices, some products become really, like, interesting. Our next question comes from Mr. Boiati from Banco Safra. Good afternoon. Thank you for taking my question. Most of my questions have been answered, I just wanted a little bit more color about the NAFTA region without considering Mexico. What has been the penetration in NAFTA countries like? With this more restricted cattle cycle in the United States, has this been allowing you to have a greater market share? If we include Mexico, how does that change the picture? What cuts does Mexico buy? Are they the same as the other regions? Are they different? What about carcass in Mexico? How does Mexico, as an export market for Brazil, changes the whole picture? About the domestic market in Brazil, what has the demand been like, and how has the company performed in terms of sales channels? As for NAFTA, there has been a reduction in terms of the supply of cattle and beef, consequently, the U.S. exports a lot to Mexico, basically cuts for processing. This is complementary to what Brazil and Argentina have been doing. From the information we gathered, our exports to Mexico will not be subject to quotas. This allows us to have greater opportunities to work in that market. We are very optimistic with the approval of Brazil for exporting to Mexico. In terms of the domestic market, it is suffering a bit. Families and households are in greater debt. There is less income available. We see a trade down, and we have been focusing on cheaper cuts, on cheaper products, but we are trying to work more on the premium market. Our platform in Argentina, Uruguay and Paraguay, we have been bringing niche products, especially with two brands that we have, Cabaña Las Lilas, produced in Argentina and Uruguay, El Estancia, produced in Brazil and Paraguay. With this, we are penetrating a niche market increasingly more. We are prioritizing our distribution to food service, special retailers and these premium markets, so we are less subject to fluctuations. Premium markets are not as elastic. The premium cuts are being very successful in the domestic market. The next question is from Mr. Romano from Bradesco BBI. Good morning. I have two questions. The first one has to do with China. You have answered part of my question in the Q&A, but I would like to understand what happened in Q4. There was a significant reduction to gross revenue from 33% to 25% in Q4. Edison said that the demand in China was weaker in October. Why did that happen? When we compare the revenue with the public data about exports, there was an even more significant reduction than we see in the public data. You also spoke about Argentina, but what happened? The second question has to do with the gross margin. Quarter-on-quarter, the gross margin has remained flat despite the drop in revenue from exports. What were the main drivers for that? Maybe the addition of Australia. These are my questions. Thank you. In terms of China, I don't know what data you're comparing our data to. In China, this is very clear. It went from 50 to 25 because of the measures, the lockdown measures, which hurt sales, especially in the first two months of the quarter, and the major reduction on the revenues from Argentina. That is because China accounts for a larger share of the exports from Argentina than the exports from Brazil. The relative share of China in our exports was relatively higher than what you saw in the Brazilian market as a whole. We managed to keep the gross margin because of risk management. We have our model, and whenever we see that margins are favorable, we try to lock those margins. In the exchange rate, for example, we were locked before the appreciation, so we were able to secure gross margins from Q3 to Q4. We managed to get margin stability by managing risk. This is a strategy we have in place. We have, you know the Beef Desk. The Beef Desk is a daily forum, and we work with every one of the origins, and we assess the three main variables of our business, the price of beef, the price of cattle, and the foreign exchange. We look at the exposures, the gaps, and we make decisions whether we lock or don't lock. Looking at the gross margin, in some cases, the EBITDA margin as well, but we work mostly with the gross margin. When the gross margin is at a level that we think is good, we lock the variables so as to ensure we get the result and reduce the volatility of our cash flow. Thank you. Our next question comes from Mr. Tavares from XP Investimentos. Morning, thank you. My question has to do with the balance sheet. You gave us a breakdown of suppliers, there is an account that you call agreements, Convênios. I would like to understand some points. How is that dealt with in the balance sheet, and what about the costs relating to the payment of interest? Have you seen any impact in costs after the Americanas situation? You give me an opportunity to speak about it. We have this note there, this account, agreement, suppliers. This has become weird in the market after the Americanas issue. This is just a commercial operation with suppliers. In our case, what we do is we have a credit limit available to ranchers. This is between us, the rancher and the bank. The rancher wants to anticipate that, they take the risk, we receive from the bank a percentage. We don't change the characteristics of the negotiation with the supplier. This is set in stone under IFRS. This is not a bank operation. Given that the conditions are agreed with the rancher and these conditions do not change, the conditions may be changed between the rancher and the bank using our credit limit, because we have a better risk profile before the bank. The rancher then has the possibility of obtaining discounts and raising capital at lower rates. This is described, as I said, in the note, in the explanatory note. You can read the note, or I can read the note, but this is exactly how we do it. It is a commercial operation, and we use that in the correct way. That is the commercial relationship between the rancher and us continues to exist as it is. Just, the second question is, has there been any change in costs after the Americanas event? Yes. The cost is not ours, as I said. There was an increase in costs. It's not only for this operation. The credit market is seeing a more complicated situation after Americanas. All the spreads are up. The banks made major provisions. When you have an event like that, it was a large retailer that had a good reputation. Its controlling group was well-known. When something happens, it's difficult. Banks have to be more selective. When they grant credit, they naturally increase the spreads for all the segments, not only for retail. The effect is not only in the drawn risk. It was for the credit market as a whole. Thank you. We will now ask Mr. Ticle to read the questions that were sent in writing. There are some questions on the webcast, and I'll move to the first. We are asked to make some comments about the financial impact expected from the BSE and if there is a downside risk if we export, not from Brazil, but from Uruguay or Argentina. BSE has closed Brazil. We expect that it's not going to last long, but of course, if we cannot export to China, there will be an impact on revenue, EBITDA and margins for the time that this market is closed to us. We had a more conservative expectation for Q1. We are very optimistic for Q2 and Q3, but for Q1, yes, we thought the results would be weaker. With the BSE, we are expecting lower revenues and margins. Is there a downside risk if we ship from Argentina and other places? No. Exports from Argentina and Uruguay should be able to achieve a higher profitability if Brazil is unable to export. Of the total exported to Brazil by China, what percentage can be exported by other countries? That's hard to answer. It is a decision we make on a weekly basis. In theory, if it makes sense, I can take all the volume that I could export from any other country, and export everything to China, but this is not what happens. There are some cuts that have a better return in other markets. The front cuts perform better if they're exported to China. Why are the beef prices low in Q4, and what is the outlook for the rest of the year? China plays a very important role in these statistics. If you sell less to China, this has an impact on prices, and that's why you saw an impact on the results of Q4. Q1 will be difficult, especially after the BSE situation, although we think this is not going to last long. But we prefer to be optimistic for Q3 and Q2 2023. The other question is, can I discuss the M&A strategy for 2023? What types of deals would we like to make? Would we be comfortable in growing net leverage if an attractive operation came up? This is all in theory. What I can say is that we have a very responsible strategy for allocating capital. We exercise discipline. Last year, we made an important acquisition. We are now leaders in terms of exporting lamb from Australia, and we used part of our operating cash flow, which was generated last year. With this, we managed to grow by a major asset, pay out dividends, and reduce leverage. Each operation is an operation, which each deal is a deal. We look at each deal, each deal from a strategic point of view, but also how it's going to be included in our balance sheet in a way that we can maintain healthy capital structure and still pay out dividends. For this, we have to keep our leverage equal to or below 2.5x. I think these were the questions coming from the webcast, I now turn the floor over to Fernando for the closing remarks. Thank you. Thank you all. I would like by thanking the Minerva team. Last year, we celebrated 30 years since the foundation of Minerva, and we have been listed in the stock exchange for 15 years. We were only able to achieve that because of the dedication of our team, for the partnership, for working together. We have always been exporters. That's why we focused on diversifying our geographies. This allows us to reduce volatility and to generate value regardless of what happens anywhere in the planet. Our job has been to improve arbitrage. On the purchase and sale fronts, we want arbitrage to have a strong impact. This is possible because of our culture. Our team speaks the same language, thinks in the same terms, and this allows our company to be ready to innovate, to be ready to continue our journey towards implementing our business plan. We focus on diversifying from a geographic point of view, on being closer to the consumer, and we also have sustainability as one of our pillars. Thank you so much, and we remain available should you want to discuss anything. Thank you very much. The video conference is now closed. If you have any questions, send your questions to the IR team. Thank you very much for participating, and have an excellent day.