[Non-English content] Good morning, ladies and gentlemen. Welcome to Dexco's conference call to discuss the results of the first quarter, 2026. This video conference is being recorded and the recording will be available on the company's website, ri.dexco.com.br. The presentation is also available for download. We'd also like to inform you that you can listen to this conference call in English. You just need to click on the globe icon and then select the English language. You can also mute the original audio. We'd like to inform you that all participants will be in a listen-only mode during the presentation, and afterwards we will begin the Q&A session when further instructions will be provided.c Before proceeding, we'd like to clarify that any forward-looking statements made during this conference have as a base all of the information available to the company right now, and they may involve risks and uncertainties as they refer to future events and therefore depend on circumstances that may or may not occur. Investors, analysts, and journalists should understand that the general conditions, industry conditions and other operational factors may affect the results presented here. Joining us today, we have our Executive Board and our investor relations team. I'd now like to turn the conference over to Lucianna Raffaini, our CFO, who will start the presentation. You may begin. [Non-English content] Good morning, everyone. Welcome to Dexco's earnings presentation. I am Lucianna Raffaini, the company's CFO, and joining me today are Raul Guaragna, CEO, and Guilherme Setubal, IRO. Let's begin. We're here to share the first quarter results. We'll see that these results reflect consistent progress in the execution of our transformation plan, with important progress in cash generation, margin expansion, and deleveraging. This is a very special moment of Dexco. We're celebrating our 75th anniversary. Let's start with the highlights of the first quarter. The first quarter marks an important inflection point in our operational journey with disciplined execution and a focus on sustainable profitability. Adjusted and recurring EBITDA, excluding LD Celulose, reached a BRL 478 million mark, a significant increase of 38.2% compared to the first quarter of 2025. The ceramic tile division continues to operate in a challenging demand environment, but with improvements supported by our productivity gains and strong expense management. Metals and sanitary ware performed in line with our expectations, consistently delivering improved operational performance, better price execution, and productivity gains. The Wood division delivered another consistent quarter, benefiting from the capture of price increases implemented in the previous quarter. Our total recurring net revenue at Dexco grew 6.1%, going from BRL 1.9 billion in the first quarter 2025 to BRL 2 billion in this quarter. The gross margin also improved. It went from 23.4%- 27.4%. That shows our discipline in price implementation, our improved mix, and operational productivity gains. Dexco's adjusted and recurring EBITDA reached BRL 478 million when coupled with LD Celulose BRL 180 million amount to BRL 658 million. A 23.7% gross margin compared to 18.2% in the same period last year. Recurring net income total BRL 72 million in the quarter. Dexco improved by 78% year-on-year. It still closed slightly negative at BRL 9 million. LD Celulose posted a 35% decline, mainly impacted by lower dissolving pulp. Due to its crisis and to the FX effects ending at a positive BRL 81 million. This represents a 14.2% decline year-on-year, it still demonstrates the gradual recovery of Dexco's operating profitability. Let's move on to our cash flow. The first quarter of 2026 marks a quarter of strong cash generation, supported by improved operating results and structural working capital improvements. Starting from our recurring EBITDA of BRL 178 million, we had a working capital consumption of BRL 44 million. BRL 174 million in sustaining CapEx and BRL 20 million in project investments, representing an 87.5% reduction compared to the BRL 160 million recorded in the first quarter of 2025. I n addition to taxes and other items. As a result, our operating free cash flow totaled BRL 226 million. On the financial cash flow side, we recorded a net inflow of BRL 9 million, as there were no significant principal or interest disbursements during the quarter. This contributed to a total free cash flow of BRL 235 million in the quarter. The working capital to net revenue ratio declined to 17.3% in the first quarter 2026, climbing down from a peak of 18.5% in the third quarter 2025. We can say that we have started on a journey of structural improvement without compromising our operations, and that remains a focus of our transformation plan. Our sustained CapEx was BRL 174 million. Out of that, BRL 127 million referred to forestry OpEx, BRL 41 million to maintenance and BRL 20 million to projects. That is in line with the conclusion of the investment cycle and the company's cash preservation strategy. Cash generation and deleveraging remain our top priorities. Moving on, let's talk about our debt levels. Dexco's financial leverage declined to 2.99x net debt over EBITDA. That represents a debt of 0.36x in the quarter, going from 3.35x in the fourth quarter 2025. This is the lowest level in the last 10 quarters. That is driven by a combination of strong operating cash generation and the concluded in the last quarter 2025. Our net debt closed the quarter at BRL 5.3 billion. That is a BRL 200 million reduction approximately quarter-on-quarter. 87% of the debt is long- term, with an average maturity of 5.3 years, an average cost of 104.6% of the CDI index. As you can see in the chart, the amortization schedule is comfortable and we maintain an excellent liquidity position. There are two important events we'd like to highlight. We concluded the CPR transaction in January, which added BRL 296 million to cash and the timber trading operations, which contributed positively to cash generation as well. Let's now look into the division starting with ceramic tiles. This is currently the division facing the most challenging environment. We continue to execute with a lot of discipline. Let's start with the industry environment. The ceramic tile industry continues to operate with excess capacity. The installed capacity utilization declined to 63.1% in the first quarter 2026, going from 72.1% in the fourth quarter 2025 and from the peak of 74.6% in the Q3 2025. This continues to sustain elevated inventories and competitive pressure on prices. The wet process industry sales volume declined 10.3% in January, February compared to the same period in 2025. From a broader perspective, the market remains 22% below the peak in 2021, showing that the post-pandemic normalization has not yet occurred. Demand continues to be below historic levels and recovery continues to be gradual. The combination of excess supply, weak demand and pricing pressure continues to weigh on the sector. Inventory reductions are occurring gradually. In this context, our strategy is to focus on what is under our control, namely productivity, efficiency and cost discipline. Let's now talk about the ceramic tiles results. Ceramic tiles volume declined 9.9% year-over-year. This performance reflects the weak demand environment that we have just described. Net revenue declined 13.9% to BRL 172 million. However, gross margin improved, increasing from 10.2%- 16%. That is a 5.8 percentage points quarter-over-quarter. That is driven by higher industrial productivity and installed capacity optimization. Adjusted and recurring EBITDA was negative at BRL 3.5 million, with an EBITDA margin of -2%, improving from the 6.2% in the first quarter 2025. We know the environment will remain highly challenging, which is why we continue to maintain discipline and productivity initiatives such as kiln gas optimization through heat retention projects and reduce raw material consumptions, as well as strict cost control and expense management. Let's now talk about metals and sanitary ware, a division that delivered a quarter of strong recovery and solid execution, even within a still challenging environment for the construction sector. The metal and sanitary ware market posted a slight decline in demand in the first quarter across both segments. According to ASFAMAS, the industry gross revenue totaled BRL 245 million for metals and BRL 268 million for sanitary ware, posting modest declines compared to the fourth quarter 2025. There are no signs of accelerated deterioration throughout 2026. An important point of attention is cost pressure, especially copper, the main raw material for the metals division. In response, all industry players implemented price increases. Moving on to this division results. Metals and sanitary ware delivered a quarter of strong earnings recovery, demonstrating that our commercial and operational execution efforts are generating tangible and consistent results. The unit volume declined by 3.1% year-on-year. This slight decline is associated with the industry environment, as we mentioned. It was more than offset by improved pricing and product mix. As a result, net revenue grew 9.3% to BRL 155 million, and gross margin increased from 19.8% to 28.3%. That is an 8.5 percentage point increase. That is due to the following points: the capture of price increases announced in the Q4 2025 and the Q1 2026 also improved productivity and operational management optimization as well. Our adjusted and recurring EBITDA climbed from BRL 8 million- BRL 40 million, and our EBITDA margin increased from 2%- 8.7%. This underscores the effectiveness with which we are executing our transformation plan. Let's now talk about the Wood Division. It also delivered another quarter of strong operational performance. This remains Dexco's most profitable division with 89% capacity utilization. Let's start with the results for the first quarter 2026. We had the domestic panels maintaining healthy fundamentals. According to Ibá data, the total panel volume grew 4.1%, reaching 2.15, MDF grew 10% and MDP increased 2.2% in domestic market. We see that the factory utilization or capacity utilization has remained high. Exports continue to decline, falling 17% in the quarter. This movement reflects the redirection of supply to the domestic market, which continues to absorb volumes at consistent levels and with better profitability. Moving on to the Wood division results. EBITDA margin increased 26.3%, highlighting this division's strong value capture capability. Panel volumes remained virtually stable with a slight decline of 0.6% year-on-year. This volume stability combined with revenue and margin growth clearly reflects improved pricing and product mix. Recurring net revenue increased 8.1%, now at BRL 1.392 billion, and gross margin expanded from 26.7%- 28.6%, supported by improved price capture and sustained business profitability. Adjusted and recurring EBITDA totals BRL 142 million, with an EBITDA margin of 31.8%. A point of attention for the coming quarters. The first quarter 2026 results do not yet fully reflect the impact of higher raw material and freight costs resulting from the conflict in the Middle East. These effects are expected to materialize starting in the second quarter 2026, and we are working to mitigate them. It's important to emphasize that the Wood Division continues to show healthy fundamentals with resilient demand, commercial discipline and price capture. Also with product mix optimization and strong operational efficiency. Now, LD Celulose, our joint venture with Lenzing, where the results presented refer to 100% of the operation. LD Celulose shipped 168,000 tons in the first quarter 2026. A 13.9% increase year-on-year. This performance reflected the plant's high productivity and operational efficiency. In spite of higher volumes, recurring net revenue declined 10.2%, now at BRL 758 million. It was mainly impacted by the lower dissolving pulp prices in the international market and the unfavorable FX effects. Adjusted and recurring EBITDA totaled BRL 768 million, down by 32.1% year-on-year. Dexco's share amounted to BRL 180 million. LD Celulose net income totaled BRL 165 million, down by 34.6% year-on-year. These are the same factors, pricing and FX, that will explain why the slight decrease. Concluding the divisions results, I'd now like to present the sustainability cycle. The 2021 to 2025 sustainability strategy cycle concluded with 16 out of the 21 targets achieved. We're now defining the new metrics and targets for the next cycle, with publication expected by the end of 2026. Some highlights from the completed cycle include a 13% increase in the average score of suppliers participating in the GFD program. 100% of municipalities with industrial operations in Brazil received engagement initiatives. 36% of leadership positions held by women. 9.7% reduction in energy consumption. A 53.6% reduction in waste sent to landfills. 43,000 professionals engaged in training and engagement programs. We're very proud of these results. We're also pleased to share that we published our 2025 integrated report. For 2026, our focus is on preparing sustainability related financial disclosures in accordance to the IFRS S1 and S2, aligning Dexco with the global ESG reporting best practices. We'll now move on to the update on our priority projects. We remain fully focused on the continued execution of our five priority projects within our transformation plan. First, financial deleveraging. We closed the 1st quarter 2026 at 2.99x net debt over EBITDA. We continue progressing toward our 2.7x target. Second, go-to-market. Our objective is to sell better, not only to sell more. Our results reflect our channel repositioning and mix strategy aimed at converting branch strengths into real margin gains. Ceramic turnaround or rather ceramic tiles turnaround. We delivered EBITDA improvement even in adverse environment by focusing on what we can control. Higher productivity, cost management, and disciplined expense management. Wood innovation. We achieved 8.8% growth in unit revenue. Direct export to business is our next value frontier. Fifth, metals and sanitary ware competitiveness. Sustainable improvement compared to one year ago. Sanitary ware automation is the next catalyst for structural profitability. The first quarter 2026 results confirm the consistency of execution of our transformation plan. Each division evolved according to its stage of maturity, and each strategic project generated measurable evidence of progress. Moving on to our outlook for the second quarter 2026. Starting with ceramic tiles. In the second quarter, we expect volatility and uncertainty. This is still a challenging market with a downward trend in volumes. There are no signs of meaningful demand recovery in the short- term, and t herefore, our response is to continue accelerating productivity gains and to further optimize production capacity. For metals and sanitary ware, the focus remains on commercial discipline, improving profitability through margin expansion and price capture. Our key point of attention is how demand behaves in response to the price increases. The Wood division enters the second quarter in 2026 with demand at stable levels and prospects for further price capture. As I mentioned earlier, our main point of attention is rising commodity costs, including urea, methanol and other inputs, as well as freight costs, which may pressure business margins in the coming months. LD Celulose continues to expect another year of high productivity and strong operational performance. Additionally, we expect a possible improvement in DWP, the dissolving wood pulp throughout the year. This concludes the presentation of the first quarter 2026. Thank you all for joining us today. We'll now open the floor for our Q&A session. Thank you. [Non-English content] We'll now start the Q&A session for investors and analysts. Should you wish to ask a question, please click the React button and then click Raise Hand. If your question has already been answered, you can click Lower Hand and leave the queue. Ricardo Monegaglia from Safra would like to ask a question. [Non-English content] Can you hear me well? [Non-English content] Good morning. Yes, we can hear you. [Non-English content] Thank you fo r taking my questions. I'd like to start off talking about deleveraging. I think it's a very important point. Correct me if I'm wrong. In 10 quarters, this is the first time it goes under 3x your EBITDA. Congratulations. My question is, where do you see further opportunities to continue to deleverage? Is it increasing your EBITDA numbers? Can you optimize working capital? With the 2021 to 2025 cycle being concluded, is there any chance to reduce CapEx further down compared to the BRL 800 million? Are there any asset opportunities that you can share with us? There was a decrease in the average debt cost and that supports you in interest rate payments. Are there any other opportunities? I have a second question. [Non-English content] Sorry. Go ahead. I think Lucianna will answer the first question about deleveraging. [Non-English content] Thank you for your question. We have been consistent with deleveraging as we said we would be in these past six months. Starting off with operations, we will see a challenge to sustain these operational gains that we had. Continuing with our maintenance and discipline in pricing implementation. While considering the very challenging macroeconomic scenario and continue to be productive, we've been very disciplined, and we have had substantial gains. We want to sustain that in the coming quarters. That is a challenge of course, but we're quite confident we'll be able to make it. As for working capital, we can see that this quarter has a substantial improvement year-on-year, but we still consume BRL 44 million in working capital. In the course of the year, there is an opportunity to improve our working capital leverage, especially in inventory levels. As for CapEx. When you think about sustaining CapEx, we won't be doing anything that will harm our business in any way. We'll sustain it at the levels we need it. Projects, well, we're getting to the end of this cycle. These BRL 20 million were published in this first quarter, but we have no expectation of this continuing in the coming quarters. We need to continue with operations. Working capital, CapEx is on our radar. These are the structural and operating levers that we have a lot of discipline on. When we talk about non-operational assets, we continue to analyze a number of opportunities in the projects we mentioned, whether they are related to operations or not, sustaining the consistency of what we mentioned. That's why we have the 2.7 target up to the end of the year. [Non-English content] I think this is the most important question regarding our management here to really improve our cash generation potential. 2.99 is a multiple that made us happy. The sign of increase were below three for the first time, and you're right in 10 quarters. We're not only concerned about the multiple. The total amount of the debt is very important. How much we pay for this debt is also very important. We aim to end the year between 2.5 and 2.7. Of course, top line EBITDA are going to be contributing to that, but we are really focused on reducing debt levels. You saw the BRL 200 million decrease in net debt in this quarter, and this is something we're gonna continue to pursue. To get to 2.5, we would need to have BRL 1 billion or so reduction in debt. This is the journey we're on. I wanted to say yes to every part of your question. Yes, yes. We need to enact all of the levers or the levers that we have access to. Working capital is always a big challenge. The CapEx at the end of the investment cycle is also a point. The resilience o th e Wood Division and the turnaround in Tiles and metals and Sanitary Ware also call for the management of the assets. We really intend to maintain our assets. Of course, always allocating capital responsibly. We want to have our assets operating very efficiently. I do not see a lot of room to go further below than what we have already gone with our sustaining CapEx. Any discretionary project is being removed, but the maintenance projects that also will pay quickly in terms of efficiency, they will be continued because they are very important to a long-term industry like we are. We have to maintain our operations well. Ricardo, you had another question, yeah? [Non-English content] I have a second question, yes. Well, there is a war out there and this also impacts Dexco. One of the discussions we've been having with investors has to do with profitability expectations and also the demand concerning the price increases. From what we've, what I've already seen so far in May, are we on similar levels to the first quarter without too much impact on demand, or is there concern to you at this point? I'll give the word to Raul Guaragna, please. [Non-English content] Thank you, Ricardo. Well, this is all very new to us. There are two sides to this situation. When you think about our business' turnaround and discipline, our inflationary management is included. One of our strengths is that we are a sophisticated company. We can cushion a substantial part of these increases. Also, we have a good partnership with our suppliers and with our customers. We understand that we work in a consumption market, it's a slow turnaround market, right? It's not fast-moving, we have high inventory levels, we can be very careful in these price adjustments. Some sectors have to change prices on a weekly basis or sometimes on a daily basis even. This is definitely not our case. We are watching it up close. Everything we've been able to cushion, we did. Everything we needed to transfer onto the end customers, we did. There were two price adjustments, one in December, one in the first quarter. This applies to the Wood Division, and we've been very cautious sustaining our profitability, of course. This is the first part of your question. What I think is the most important part of your question, and we're focusing more, is how the demand is going to be reacting to this, and we're also watching this close. There is a limit to the purchasing power of customers. We see that the demand is still healthy when it comes to our main customers. They've been quite stable in the course of time. Yes, it is a concern to us. The second quarter will be a key moment for us to understand how far thi s is going to go. What we can say is we'll need to stand strong in the second quarter and also in the first part of the third quarter, watching closely what is happening to customers. I've been visiting customers and speaking to them, I've been spending a lot of time doing that, and all of them are quite concerned. It also has been managing everything carefully. Credit levels have been managed carefully as well. It's undeniable there will be some effect on the customer. Ceramic tiles dropped 10% in the first quarter. This is distributors already having lower inventory levels. The same applies to metals. Even though we had lower volumes, we increased our market share. I think it has to do with our internal cohesion and coherence and our go-to-market projects. Also working to be closer with, or closer to our customers. This is certainly a point that we need to be watching closely in the coming quarter. [Non-English content] Just to complement that. We Brazilians are used to going through what we're going through, and we're focusing on what we can control internally. When you look at our results. T Here is a lot of discipline when it comes to expenses. You see a decrease in sales expenses and in G&A as well. We don't know what's in store. This is why we're really focusing on what we are able to control. As Raul said w e have actions to mitigate any impacts. hen you think about wood, for example. When you think about, oil and gas, urea, methanol, all of these inputs. Of course, there is an immediate impact on our cost The prices won't be changed to the end customer so immediatel. Profitability continues to be a very important focus for our levels to remain healthy. [Non english content] Thank you, Lucianna. We hope to have answered your question. [Non-English content] Thank you very much and congratulations on your results. [Non-English content] Marcelo Arazi from BTG, you may unmute your microphone. [Non-English content] Hi, everyone. How are you? I've also got two questions. The first focus is more on Deca. We saw a profitability level that was even better than the market expected it to be. De ca voltar a esse patamar de margem. Thi s is not the first time we're seeing Deca climb back to close to 9%. The other times we saw that this profitability was put under pressure by other drivers. What were the main drivers for this increase and, can we rest assured that this is going to be sustained now? That's my first question. The second question. Wh en you look at LD's results, we see that there has been some pressure on results because of external factors, also the pulp prices. Are the dividends going to be paid earlier to try and support the deleveraging situation of the company? [Non-English content] Raul will start talking about Deca, and then Lucianna will talk about LD. [Non-English content] These are two very important questions In the turnaround journey, Deca had about BRL 40 million, if I'm not mistaken, in the third quarter 2024, if I'm not mistaken. We need to monitor this trend. For some time now, we've been saying that some things are structural. For the very first time, our sanitary ware quality levels are close to world-class levels. That has a BRL 100 million impact on cost. We see this trend improving month-a fter- month, week-a fter- week There's one last part of the improvement project that really helps us believe in this research. In Jundiaí, the sanitary ware automation. Well, we concluded the CapEx this year. we're going to be commissioning and ramping up these machines When this starts operating full blast, we'll see other operating improv In labor and in other fronts. This will continue in the future. As for metals, well, there are many things going on. We established our outsourcing. We positioned our factories here in Braz When you look at supply chain as we've been looking, you see there's an increase in inventories and descending what the levels are and what the demand is. When you start importing, you start generating inefficiency in what you're producing generally. This is being monitored carefully as well. We'll work to make this happen in the coming quarters. The third point. We haven't yet captured pricing changes fully. What do you think about copper? For example, as Lucianna mentioned. Rapidamente, né- Many of the increases hit us quite quickly. There is some time for you to implement the price increases. We were very much impacted in the last quarter. We mentioned this in the last call. Last quarter. We had 1 first price increase. We're having another price increase now, and this will apply into the future. Now, we can't predict. We can't tell if, as Ricardo said in his answer to the first question. You may have an abrupt decrease in demand. This could increase the caution of customers.. The second element is the price increases that will take place in shipping and freight. I mean, copper is a bit more under control. We start feeling the full blast impact of these increases now. What we can say is that we're starting the journey to reestablish Deca to the levels that we are capable of and that we really should be delivering. There may be other hiccups in the second quarter, second and third quarters, but you will see consistent margins in the next seven, eight, nine quarters. This is a plan to unleash all of this potential up to the end of 2027. LD, it continues to have spectacular operating levels. Spectacular operations performance. The speed of maintenance, the delivery of volumes, all is exceptional. What we see is maybe the bottom when it comes to pricing. In the second quarter, now the start of the second quarter, with some trend to dissolving pulp price recovery. Effectively, we start seeing dissolving pulp prices climbing back to normal levels that should support our business. I'll ask Lucianna to talk about the dividends. This is a point we continue to study. It's one of these points that could help us deleverage. It's a minor point in this major strength. [Non-English content] Just to complement what Raul said. Well, there is a limit to dividends. Our expectation for 2026 is to have $5 million to be broken down between Lenzing and Dexco. This should remain for 2026, and we expect the same low flow for the following years. Nothing new there. [Non-English content] Exchange is very favorable when it comes to costs as well The dollar price is below BRL 5. This helps us when it comes to copper and to urea. Of course, this won't mitigate all of the cost increases, but it mitigates it. [Non-English content] This cost is favorable for Dexco, but in the case of LD, it's unfavorable. The effects has the same impact on LD Celulose as well. [Non-English content] That's very clear. Thank you for your answer. [Non-English content] Gabriel Barra from Citi has a question. You may unmute your microphone now. [Non-English content] Hi, everyone. Good morning. Thank you for taking my two questions. This is a follow-up on the deleveraging question that was asked. As Raul said, it's one of the key points in the company's investment thesis. One of the discussion has to do with, amortizing or selling assets. We see that the total debt is going down now. You're likely to get to the 2.7 mark at the end of the year. The asset sales is still a strategy that you're considering in terms of deleveraging? Or could you even expect more deleveraging with this amortization? My second question has to do with wood and also piggybacking on what Guilherme said about cost reduction. You mentioned the cost reductions here in the second quarter. We see the wood results in the first quarter above what was expected. Can you detail out the impact on cost that we can expect in the second quarter? If these results may be due to some demand changes or increases in costs. How do you see the whole equation here for the second quarter, considering this more uncertain scenario and the cost pressure? These are my two questions. Thank you. [Non-English content] Thank you, Barra. We're also answering the question. Thank you for giving us a chance to delve deeper into the deleveraging discussion. This is one of our main project. All of the alternatives that we had been looking into in the past six months, they are still valid, and they continue to be studied. As I said, 2.7 looks feasible, and we're talking about 2.5- 2.7. EBITDA improvements can contribute to that, certainly. I really do want to reduce the total debt further. Of course, the cash generation plays a key role. Other assets continue to be on the table considering their possibility of selling them. We have several factories, several plants that are idle, and all of this is being looked into. You get to some So a few hundred million BRL here. When you add them all up, they're not generating any results, and they're generating costs for us to maintain them with a minimum level of maintenance you need to have. Operations assets or operating assets. We'll continue to assess them. We're really looking with Dexco. Dexco and the whole group always focus on the long term as well. We want to be loyal to our purpose. We want to have the best brands. We want to have products for every environment of the home. This strategy is the backbone. It is our backbone. We want to be self-sufficient in Wood. We want to have the very productive in our forests. This long term results are still present. If we can keep to our long-term strategy and sell assets, this is a possibility that we'll continue to assess carefully. Again, we want to be between the 2.5, 2.7 range, but with a much smaller debt than we currently have. I think this is the key point. The second question had to do with wood costs, right? I spoke about our ability to be more efficient than the competition in wood. We're one of the few companies that can produce our own resin. We can amortize these price increases more competently. We can do hedging. We can increase our raw material or feedstock. We can produce resin. In this first quarter, we haven't yet felt the full impact of the price increases. Urea has climbed 50% in these past months. You see the average cost behavior as it is. We don't expect this to be sustained for a long time in urea, for example. We also announced the price increases about two months ago, one and a half months ago, getting enforced in May, so we see these new prices coming in. In wood we still see healthy demand. We don't see any hiccups here in April or May that should concern us. Of course, June, August are still ahead of us. Seasonality isn't that strong for September, October, November. We have the strongest months for the wood market. The next two to three months, they are important, but we're confident. We're confident that the cost control is being performed diligently, that the price increases are being transferred onto the customers timely. If we continue to have these cost pressure and we have to have more increases in price, then there could be more impact on demand. So far, demand is looking healthy, especially in Wood. [Non-English content] Thank you, Raul. [Non-English content] Matheus Moreira from Bradesco BBI. [Non-English content] Hi, everyone. Thank you for taking my questions. My first question has to do with Deca. Results were slightly higher than we expected, especially due to costs compensating or offsetting for the lower prices. The company strategy was to improve the mix. When you see that pricing went down by almost 10%, which was offset by cost improvements. To that end, does that show any change in the division strategy? Is it focusing more on volume than price? What can we expect in price and cost in the future? My second question has to do with wood. We see that Dexco's volume was lower than the market. It was 1% down year-on-year, and the market grew five year-on-year. This relative performance, is it due to capacity you're operating close to your nominal capacity, or is it a strategy where you're prioritizing products with more value added? [Non-English content] When we think about Deca, and you look at the fourth quarter and the first quarter, and other investors have raised this point, we improved the finished mix, the finished unit mix. We improved the pricing as well. We improved the pricing and the mix of basic items as well. That impacted the total revenue. I think this is the point. We have a massive improvement, or a massive improvement potential in this high-end category in Brazil. We invested a lot in our Deca for different colors. We have nine different colors. The market is really enjoying this. I think we'll continue to improve this mix improvement. This is a point that's more difficult to understand, really. Deca is also a leader in the basic items. The basic items are the ones that go within the wall. You have the finished products that are outside the wall. That's the main point. We got more market share in basic items as well. When you look at basic items and finished items and you combine them, you see apparently a reduction in mix. When you look at them separately, we have increased pricing and mix in basic items, and we improved the mix in finished items. This continues to be a very careful perspective on it. No change in strategy, no. We'll certainly continue to pursue mix improvements. That's a very important lever. From another perspective, the footprint, the capitalization, the reach is very important. We need to deliver metals quickly. In doing that, we get more confidence from the smaller retail. They hadn't been working with Deca a lot. These are products with healthy margins. When you look at the results going forward, the high-end mix improvements should continue. The reach is something that we're striving for. Momentarily there could be a loss of mix, but with an increase in retail, and that's very healthy for our business. Do you wanna talk about Deca? Lu. [Non-English content] I just wanted to add some color. We had a 9.4 increase in net income in Deca. I just wanted to give you some color and number. We did have an increase in unit as well. That was almost 13%. We don't want to sell more only. We want to sell better. I said that when I was presenting the results, mix profitability and our go-to-market. We're repositioning our portfolio, repositioning our channels. Of our sustainability, sustainable. We need to sustain that for our sustainable profitability in the coming months. [Non-English content] Perfect. Now, on the scene of Madeira, I want to Perfect. Now, on the scene of Madeira, I want to repeat to you almost a mantra that we have here in Madeira. When it comes to wood. Which we call optimal occupancy. We have the utilization, right? Madeira does not give up our market share, which has to be equivalent to our capacity share. Our market share has to be the same as our capacity share in wood. Even if it comes with a weak market, which has not been the case this year. We absolutely insist on that. We produce a lot. We have market share equal to capacity share. Market share has to be equal to market share. Available sells and makes a result through Madeira. This has been one of the main elements of success. This has been one of the main drivers for success in Wood and this consistency in the market. The competition, the market has understood that this is how we drive it. With discipline, enormous. We're very diligent in doing it. You have inaudible. What we do here. Maintenance that took place in our panel plants. We have the panel plants that had to reduce and that will impact the volumes available momentarily. When you look at the situation in the long run, you see that wood is quite stable in this model. We don't want to lose any market share. We want to have high utilization, at least close to 90%. With opportunistic forestry deals, opportunities in trading, in surplus wood, not buying wood or buying wood for panels. There are loads of elements that we continue to look at. Nothing really changed. This is a momentary point out of the curve, mainly because of line stops. Nothing, especially nothing due to stopping any lines. [Non-English content] Thank you very much. In Deca, my question had to do more with the, with the price changes quarter-over-quarter. Yeah, we need to compare it to the previous year as well. Thank you very much. [Non-English content] Matheus. Thank you very much. To be punctual, we'll just have the one last question now to wrap up. [Non-English content] Now it comes to Marcio Farid from Goldman Sachs. Marcio Farid from Goldman Sachs. [Non-English content] Saving the best for last. I think a good part- Saving the best for last. The basics have already been done here. The conversations were really interesting here. The discussions were great. We've talked a lot about wood and you talk about demand and cost. There is a supply risk as well, right? There is a supply risk as well, right? The competition is in a much worse position than you are. competitive environment. Thinking about the last two years in competition. More net short or less net long in wood, at least, right? They may have been more net short and less net longer. Just thinking about that in wood and tiles really as well. I know that the sector has changed structurally. Smaller competitors have become more competitive. Just quickly, is there any opportunity for us to see? Is there any opportunity for this inflationary scenario, for this price pressure to lead to impact on supply that could improve the market for you? I was just trying to raise another point. [Non-English content] Thank you, Farid. Indeed, two very good questions. Thank you. Those are 2 very good questions. Thank you. Those are 2 very good questions. Uh, in wood- When it comes to wood. I don't see an obvious exit when it comes to capacity. I don't see any obvious exit when it comes to capacity. Brazil also exports a lot of MDF and some MDP. Certainly, our competitors will prioritize the domestic market. The competition will certainly prioritize the domestic market. If there's any challenge in capacity, will reduce export and that's still an opportunity for us to be consistent in exports in some of the key markets. In the long run, I mean, what is positive in this story is. Panels won't take anyone's nonsense. With the wood availability, the market is a lot more disciplined than in the past. We have the full capacity operation, and people would look at the price later, but this doesn't happen anymore. There's a lot of discipline in pricing. Companies are a lot more cautious when it comes to pricing. You see everyone had increases. Some companies more or higher increases than the one that we announced. Everyone had increases. Some companies more or higher increases than the one that we announced. Everyone had increases. Some companies more or higher increases than the one that we announced. This bears witness to what you've just said. In this case, it could certainly have happened. The company is in a worse situation than we are. Other companies may well be in a more difficult position than we are. Operating panels without wood, well, that's not sustainable in the coming years. I don't see anything obvious when it comes to capacity reduction. Certainly, in the medium-term, eventually, those who do not have a self-sufficient level of wood will have to reduce production. Capacity or regulate capacity, reducing it to lower than your max capacity. Yeah, reducing capacity. This is a very important point in this story. For tiles, this is a very important point to us. What is stated as a fact, the competitors that we deemed small are actually gigantic when you understand the market better. They have good operating capacities, good cost capacities. That really has changed the dynamics of this market. They have invested in capacity as well, and this contributed to this unbalance in supply and demand. 20-25 less in demand and 10%-15% more in capacity. This really changes the competitive dynamic and makes it more complicated. We also need to think about the fact that there are many markets within this market. When we look at the dry purchases, it's more than 60% of the value. This is a world we're now gonna tap into. When we look at the wet purchases, this is a BRL 10 billion playground. This is the largest market we're in. At the base of the market, BRL 5 billion of it. Dexco doesn't have a right to win there. We don't have a value proposition, our operations levels or cost levels there. Nor from a compliance or cost or investment perspective. We have to operate on the other BRL 5 billion. This is a very important addressable market. Our brands, finishing is our formats, the sophistication of the plants, the product, the presence in trade fairs, in Plaza Dexco retail. I think all of that shows us that by controlling costs, getting to an excellent level of operations, managing demand and capacity. While we've been seeing subsequent reductions in capacity, we used to think we could be a 35 million meter, 3 m company. We're smaller than that, but with a profitability level and a value share and market share that are much more relevant. This continues to be a very important element. There are a few companies that can claim they have a share in their high-end market. We have to have matching costs, the right factory utilization. With Botucatu, after this one and a half years struggling to ramp up, we see that the plant is making more sense. [Non-English content] Thank you very much. Congratulations on the quarter and good luck. Th e second quarter is going to be quite important. It certainly is going to be very important. [Non-English content] This is the end of the Q&A session. We turn the conference over to Mr. Raul Guaragna for his final remarks. Nothing much to add at this point. Again, consistency, keeping to our long-term plan, three years to unleash value. We're positioning our brand, our products, our plant capacity. Looking at our teams, reorganizing the tiles and in Deca and Wood, showing all this resilience. 2025 is in the past now. 2026 and 2027 are years for us to really unleash more value. With capital generation, building capability, commercial capability for us to claim our right to grow again in three years. This is our commitment to the medium term. Careful, transparent management. We've been speaking to you very truthfully in a very consistent, disciplined manner. You are, of course, grasping our dynamics more and more. Our medium-term plan. You, like us, continue to have high expectations, right? When you read the report, you see that the turnaround is what it is now. It is a reality. We can think that there will be thunder and lightning on this journey. The second quarter is a key quarter and we speak to the leaders, we speak to the company to explain what we're going through. Really keeping our eye on the ball. We control what we can control. We focus on what we can have more efficiency in. This is the tune we're playing. We believe that Dexco's best years are still to come, indubitably. Thank you very much for your diligence. Thank you for the quality of the reports you've been writing. We're very happy about that. Should you have any questions and you need any clarity or explanations, we're here. We're available to share that with you. [Non-English content] This is the end of Dexco's conference call. Thank you for joining, and have a good day.