Good morning, ladies and gentlemen. Welcome to the results 2Q 2022 of Cyrela Brazil Realty. Regarding the results of the second quarter of 2022. We have with us Mr. Raphael Horn, Co-CEO, Miguel Mickelberg as CFO and IRO. We're informing that translation is available by clicking on interpretation button. You can also mute the original audio for a better experience. Additionally, if you want to access the presentation in English, it can be found at the website ri.cyrela.com.br. During the presentation, all participants will have their mics off. We'll start our Q&A session. To make your question, click on the Q&A icon and type in your name and company. You can unmute your mic after request appears on your screen, and then you'll be in a line, and then you can press asterisk six when you're called to make your question. While we have some statements regarding the future perspectives of business of Cyrela and also operational goals and financial goals, you may understand that political, macroeconomic and other factors can affect the future of the company and lead to results that differ materially from those expressed in such future considerations. Now let me call Dr. Raphael Horn, the Co-CEO, who will start the presentation. Mr. Raphael, the floor is yours. Mr. Horn, you can start your presentation, please. I believe your mic is off. Good morning, everyone. Can you hear me now? Yes, please. Well, the internal and external scenarios demand caution. Even so, Cyrela found good financial and business results due to its strategy to differentiate itself in each launch. We launched 13 business in 2022, so we start- We finish our semester with 43% up considering the first six months of 2021. Pre-sales of BRL 1.622 million, 13% higher. Net revenues were BRL 1.250 million in this quarter, 2% higher than the BRL 1.32 million in the first quarter of 2022. And 6% higher than the BRL 1.182 registered in the second quarter of 2021. Gross margin also grew 31%, and net profit also grew. We are still waiting for our operational results. Well, on slide five, let me talk about the launches. In the second quarter of this year, we have BRL 2.326 million, 21% higher versus the second quarter of 2021. 124% if compared to the first quarter of 2022. In 13 projects launched in the quarter, we highlight Casa Ibirapuera Residences with pre-sales 86% of CBR in the quarter. In the quarter, we reached BRL 1.6 billion, 24% higher than the first quarter of 2022 and 4% higher if compared to the first quarter last year. BRL 1.3 billion in the Cyrela percentage. São Paulo accounted for 69% of our sales. On slide eight, let us talk about our sales speed. The SOS of the company was 43%. Sales speed per launched. We have 32% already sold. On slide nine, let us talk about inventory of Cyrela. By the end of the quarter, we totaled BRL 8.141 million, 30% more if compared to the previous quarter, accounted by the previous launches. The last launches. You can see our inventory breakdown by the right and between inventory to the left. Regarding finished units. The finished unit increased 2.9% if compared to the first quarter of 2022. On slide eleven, let's talk about delivered units. We had 2,744 units delivered in this quarter in 12 projects. The total, totaling 3,646 units in the first six months of this year in 19 projects. Let's talk about financial results. Net revenues was 6% higher if compared to the same quarter last year. Gross profit of the second quarter was 36% compared to 31% in the previous period, and 35% compared to 31% compared to the first six months last year. Net income and net margin are found on the bars, and also grew. Profitability had BRL 151 million compared to BRL 62 million in the first quarter of 2022. In 2022, liquid net achieved BRL 330 million, growing 5.4%. Our return on equity, the net income on the average net equity was 12.3%. On slide 15, let's talk about liquidity and debt. We had BRL 3.9 billion in the debt with BRL 3.6 billion in our cash flow. Out of the total, 80% is long-term debt. Our net debt regarding P&L was 5.4%, 0.6% above last quarter. On slide 16, let's talk about cash generation. In the second quarter of 2022, BRL 48 million of cash burn compared to BRL 100 million in the first six months of this year. Now, Rafa and I will answer your questions. Thank you. We'll now start our Q&A session. Please click on the Q&A icon, type in your name and company. Then when you receive the request, you can unmute your mic and make your question. Wait until we collect the questions, please. Our first question comes from Gustavo Cambauva from BTG Pactual. Good morning, everyone. I would like to make two questions. The first question is that could you talk about the sales of finished inventory? Because it fell during the, I mean, the beginning of this year if compared to last year. What about your dynamics? Are you concerned with that, especially next year? Are you concerned about deliveries, or do you think that will be good? Now, talking about launches, you have a more cautious scenario of the macro context, macro scenario for this period. But you are launching so many projects. What about this dynamic? Thinking about the second half of the year, do you have products to be launched, or are you going to reduce the number of launches? Or maybe are you launching more because the market is doing well or is reacting? What is your perspective? Thank you. Good morning, Cambauva. This is Miguel. Let's talk about inventory. We've been reducing our inventory for the past few years. I mean, what we have left is more decentralized, and it's harder to sell. 30% of our inventory is composed of commercial units. We have very few units in the residential business in São Paulo. Last year, we sold the golf units in Rio de Janeiro, and we have recently more volume in Rio de Janeiro. Now they are re-managing the portfolio. We'll take them some months, but we're not concerned. I mean, we could understand this business beforehand and get ready about the units. Now, talking about launches, the scenario is pretty challenging. It has been a while since we've had seen such a challenging period for the real estate market. Why do you keep on advancing? Well, I would say that it's because we think we have a very good product, top quality product, and with good sales speed, even considering the challenging scenario. We want to believe that when things get harder or when things get hard, we can still or will be still able to sell. Well, we launched Casa Ibirapuera, one of the largest projects, along with SKR in Minas Gerais. Thank God, it was very successful. It's not because the market is good, but because the product is an incredible top quality product with luxury brand and Vila Mariana welcomed us very well. This is not the average. I mean, this is not a portrait of what is going on. Low income is still demanding. We're still launching for the low income households. Yes, this is a challenging scenario, must be careful, but we want to believe that we will keep on launching what we intend to. It's a case by case basis. If the launching performs poorly, we will stop and think. It hasn't happened yet. We are satisfied with what we managed to sell up until now. Let's see, I mean, month by month what happens, and we will keep on evaluating the scenario. Thank you very much. Thank you, Raphael, and thank you, Miguel. Have a nice day. Well, our next question comes from Pedro Hajnal from Credit Suisse. Mr. Pedro Hajnal, your mic is on. Good morning. Thank you for the explanations and for the answers. I have a continuation of the previous question, in fact. While other companies in this very short term, I mean, this scenario is a little less challenging if compared to the past few months. Do you agree with that? Are things getting a little better in the past few months? What about sales speed and sales volume in general in July? The second question is regarding to inventory. Inventory, I mean, you have a very good mix of products in your inventory, so you can make sure products are sold even in this more challenging scenario. In general, your inventory, what would be a healthy pattern? If this pattern we see today is healthy, what is the commercial strategy to achieve that? Well, what about that? Is it about the location of the projects or facilities or architecture? I mean, or is it your business, your commercial strategy? What is it that gives you a better performance in sales? Well, hello, Pedro. Well, July was not a very good month for inventory. July was, I mean, people travel. It's not a very good month in general. We had some launches by the end of June, and they went pretty well. People usually focus more on launches, but because of that inventory, it was not so well. I mean, regarding these comments that things are getting better in the past few months, we don't have this perception. It's not. I mean, the scenario doesn't change. The scenario has improved one month. I mean, one month and in one change in half a year. I mean, the market doesn't change overnight, and nothing could trigger this improvement. I mean, the past five days, we have seen an improvement. In the past month, nothing got better. I don't understand this type of comment. It takes time, as I said. Yes, we want the Brazilian interest rate to decrease, and then there will be a change. There will be a significant change, and the long end will help us that, and we are expecting this. Well, about our success, I mean, I'm not going to tell you about the magic recipe. I mean, just joking. It all depends on how challenging the macro scenario is. We are not magicians. We don't have a magic wand. For now, in this scenario we're going through, our formula, product design and quality has been successful. If the micro scenario keeps on getting worse, we will get worse as well. I mean, we cannot perform magic tricks. I mean, we have been successful until now, but we depend on the interest rate, income, economy. I mean, there's no magic, there's no silver bullet. We are hoping that things don't get worse, because if they do get worse, we will sell less. There's no doubt about it. Well, what we have ready in our inventory, I mean, our goal would be having zero inventory. I mean, we wanted to deliver and to sell everything that we have. If you launch and don't sell, it's a source of concern. I mean, because when you launch and sell 40%, 50% in the first six months, it seems to be a proper sales speed to deliver this project. This is what we see, but the right metric, the right goal is zero ready inventory. We have some pockets, some trouble areas, but this means a mistake when we launch. We cannot launch in areas or in places where we have 10% or 20% on inventory after six months. Thank you very much. Now, Mr. André Dibe from Itaú BBA. Please, Mr. Dibe. Good morning, everyone. Thank you for your presentation, and thank you for answering the questions. I have two questions. Now, regarding costs, what about materials? Can you see some decrease in steel? Now, what about the cost of labor? I would like you to comment on your development investments in the future, in the near future, and how it can impact your launches. Now in the company, in this sense, I would like you to talk a little bit about CashMe, Cyrela's strategy and what is the size of this strategy and the next steps. Good morning, André. Thank you. Now, regarding cost pressure, in this quarter, we suffered a lot with cost pressure. In Cyrela's, we had income reversion of BRL 20 million because of the INCC inversion. There was an acceleration of this. As a consequence of this, we also have JV, which was not listed, and it's consolidating in our results, and which also had a budget overflow, and it would be 33% in the margin if you were to include it. Now, we have seen a certain change in the scenario. We still see cost pressure on cement. The by-products is still volatile. But when you talk about copper, steel, yes, there are some cost reductions that have helped us. Regarding labor, we are in the peak of our size. We have 50 job sites right now. If you look ahead, this volume will be maintained this year, next year, probably. Then we expect to have a reduction. We do not have an additional demand for labor, which we used to have in the past quarters. The scenario is still challenging, even though we do not have so much labor pressure, but we still see risks ahead. Right now, situation is a little better, but it's hard to talk about perspectives because of the global scenario exchange in commodities. What I see is that when it comes to products, we have seen some good points. Regarding CashMe, just for a disclosure regarding CashMe DNA, the income was BRL 43 million, but BRL 70 million inside this DNA, which are associated to efforts to generate new credits. This business will be turning to sales from next semester on. CashMe's DNA will be re-ranked, reclassified. We'll have a change in the impact on the DNA. Now, Raphael will talk about the strategy. Hello. Well, I believe CashMe, as you know, we have made it grow. DNA has grown this past semester for origination and commission, but the DNA grew, and it has to do with our plan to restructure the company and originate more business in our portfolio. We have these products, and we need to look at the portfolio and fixed costs and try to understand how we want to achieve the ROI results for our company. We still need to face a phase of restructuring. DNA is a little ahead, but the portfolio is coming, but it's cumulative. We have almost BRL 1.5 billion in the portfolio, and the idea is to keep on growing. If we do well in the origination phases, we hope to have good business with DNA. I mean, if the origination process is not successful, our G&A will be above the healthy level. We need to look at income and costs, and we are concerned with both of them, and up until now we are in line, I would say. Thank you very much. Our next question comes from Mr. Ygor Altero from XP. Oh, thank you. Good morning, and thank you for the presentation. I have two questions. The first has to do with the Vivaz segment. You were a little more careful because of the inflation, and it's harder to recover in low income. What about your idea now with this new update in the parameters? Are you planning to accelerate this? Second question has to do with your debt. Your debt's pretty comfortable now. Would it make sense to become more aggressive or be more aggressive again to pay more dividends and focus more on profitability and improve ROE? ROI, I mean. What about these perspectives? Thank you very much. Good morning, Ygor. This is Miguel. Let me answer your question about dividends. Well, for the past few years we've been really vocal regarding our strategy to structure our capital structure to provide the maximum return to our shareholders. Now in the past year, we had a changing scenario, which was really relevant. We have a mandatory minimum dividend of BRL 217 million. This is pre-approved. We're trading this, and this is about to be paid. We approve the repurchase program. According to the quote of the day, you would have a size of BRL 160 million. We're talking about BRL 400 million of return to shareholders if we can execute, if we can perform this program. We consider this return to have a proper size to our shareholders considering the scenario. We will always reevaluate this, and if we can see an improvement in the scenario or in the cash flow, we can discuss something extra for the end of the year. Right now, this is the proper size of capital return for 2022, we believe. Regarding accelerating Vivaz or not accelerating it, well, again, we are a company that we like to be diversified. We like to operate in three, in the three brands. It's pretty rare that we say, "Oh, let's accelerate this and not that." I mean, usually we like the three of them. We like MAP, we like Cyrela, we like Vivaz, and we work on the three of them, usually with the same intensity. We rarely say, "Oh, let's accelerate this one, but not that one." Usually the speed is a standardized speed for the three of them. Well, we are not accelerating Vivaz now, but we are not reducing its speed. I mean, the gain will be maintained, let's say. We don't accelerate or reduce the speed in such a fast pace, okay? All right. Thank you. Good morning. Now let's listen to Fanny Oreng. Fanny, your mic is on. Thank you. Good morning, everyone. Good morning, Miguel, Raphael. I have a question, a brief question. I mean, can you share with us your JVs strategy, I mean the listed ones, companies? Are these companies still making sense for you as partners? Do you plan to disinvest in these companies in the future? This is my question. Thank you. Well, hello. Regarding JVs in the States, we are very happy about being their partners. They are incredible partners, incredible operators. And financially, for the group, they meant good business. So we're happy about this partnership. I mean, we don't plan to leave the control group of these companies. We don't want that. It's almost impossible, I'd say. I mean, considering today, I mean, we have a long-term business, and the long term takes time. This is our mindset right now. Leaving the management is very unlikely. This is the idea, the general idea. Thank you very much. Our next question comes from Hugo Grassi from Citibank. Mr. Grassi, the floor is yours. Good morning, Raphael, Miguel. Congratulations on your results. Now I would like to go deeper in the low-income area. Maybe average income, low income in this following sense. In the past year, it seems that you made some moves regarding bringing this pipeline that could be in group three in yellow and green house, Casa Verde e Amarela, and brought a line of access from outside this program. I'm curious about the pro-quota holder. We've talked about CVA reform changes, but I'd like to understand that whether pro-quota holder justifies your attention or if in the limit this pipeline could be reinvested or returned to the Casa Verde e Amarela program. Thank you, Hugo, for your question regarding our low-income strategy. Raphael has talked about our long-term strategy. Now, regarding the impact brought by these programs and these measures, it's hard to assess that the review of ranges and interest rate will impact the capacity of clients to finance their units. Pro-quota holder is not as clear to us yet, but these measures can help us to let in some clients. We don't know the size of it yet. You have other measures regarding deadlines and payroll loans and that can contribute even further. These are some short-term measures. They will last until the end of this year, so we are not changing our lot acquisition strategy based on that. We believe that, yes, these measures can help us in the lot to recompose margin for some of the projects. It was hard to pass on these changes in inflation rates in the past few months. Thank you. Thank you very much. Our next question comes from Mr. Pedro Lobato from Bradesco BBI. Good morning, everyone. Thank you for this opportunity. Well, I have a quick question on lots. What about the feasibility of projects during this quarter and also looking ahead? And what about competition for lots? Are you being able to find better prices or reduction in prices? Thank you very much. Well, a lot. I mean, not lots per se, but the feasibility of any project after 18 months of such inflation made us suffer. We suffered a lot. The market suffered a lot. There's no magic. 2018, 2019 and 2020, these were better times, better years in terms of easy being able to overcome your minimal feasibility in several projects in this past cycle. Now it's harder. There's no magic with such high rates. It's harder to operate, yes. Well, but let me tell you, we are being able to operate, yes, but with less space, I mean less comfort to exceed feasibilities. If you achieve our standard, we are happy. In 2018, in 2019, we were able to go over, but now we are working with the target. It's not as easy to meet the target. About lot or demand for lots, it takes a while for demand and prices to go down. Yes, we have less competition for lots if we compare the situation with 12 months ago. Because most companies, they have their lots, volumes are not growing so much. No one is thinking about growing so much in this scenario. It's a normal thing that the competition for lots is easier now. Thank you, Raphael. Thank you all. Have a nice day. Our next question comes from Mr. Marcelo Motta from JPMorgan. Thank you. Good morning. I have two questions. Could you talk a little bit about your margin? This quarter, the margin improved even sequentially. Miguel said that if we didn't have these readjustments in job sites, we would get closer to 33%. Is the worst over? I mean, we know this is a pretty dynamic scenario as you talked about, some products such as, cement byproducts going up, or and metals going down. What about the second question is about sales. What about the sales of inventory, or what about the pressure on prices not to make clients run with high prices? Good morning. Well, regarding our gross margin, we had some effects of the second quarter, and we recognize with low margin for new launches, 29%. Because 35% of what we acknowledged in terms of income were Vivaz projects, and this is a segment we operate with a lower margin. I mean, looking ahead, we need to consider the launched and not acknowledged projects which have a 34%-35% gross margin, and it's a challenge for the launches in the second semester. INCC was hard and maybe that margin will be lower. If you can stabilize the job site scenario, we can improve our gross margin, but this is a contingent thing. I mean, it depends if we can sell the units with a satisfactory price, and if you don't face other or additional cost pressures. We believe our gross margin will grow a little bit, not substantially, but because we have a lot of volatility, INCC may cause any positive impact in one quarter, but in the medium term, yes, we could see a small improvement, but we're still facing risks regarding inventory and the cost of job sites. Raphael will now answer. Well, regarding prices, sales prices, in the past 24 months, they grew a lot, but below the INCC. Yes, we transferred prices, but it was not as bad as INCC. We will continue transferring these costs to the price, but it's a case by case idea that we follow or a strategy. Project by project, we try to find the best price always, but we don't see a lot of room for price changes or cost transference in this short term. I mean, our main villain is INCC. If it stops growing, we will find a balance because we'll be stabilized. But if INCC grows 1% a month, it's harder to find this balance, and it's hard to transfer these costs. It's really hard. Once again, if you have any questions, please submit your name and company in the Q&A window. Please wait until we collect more questions. We have no other questions, so we'll close the Q&A session now. Mr. Horn, the floor is yours for final words. We'd like to thank you all for your participation in this call. Some people asked about our better performance in this semester when things are harder. I would like to mention two things, to highlight two points. First, our team has a very strong focus on clients. Let me congratulate our team. We do think about our client, the usability, their feel, what they feel. We give a lot of value to that. We cherish that. The second thing I would like to highlight is that a company is made of people, and our team is special. Focus on people here is really high. Our team is really competent, incredible people working within the company in all areas of the company. I mean, our team is the very good one, and this helps a lot when you have a long-term focus, a focus on your staff and a focus on your people, on your clients. This helps. We depend a lot on the macro scenario. Our idea is to make our clients happy. In the long run, clients give value to that. This is what we have tried to do. This is hard, but we'll keep on doing that. We keep on struggling to make our customers and our clients happy. Thank you very much for your time, for this call. We hope the macro scenario gets better because it has been challenging. Also, we hope interest rates fall too, so we can have a more comfortable situation. Even if we have high interest rates, we'll do our best. Thank you very much and see you next call. Cyrela conference and results is hereby closed. If you have any questions, please send your questions to the RI at ri@cyrela.com.br. Thank you very much, and enjoy your day.