Morning, ladies and gentlemen. Welcome to EZTEC's First Quarter 2025 Earnings Conference Call. For those who want to listen to this conference call in English, please use the translation button on your Zoom platform. Hello, good morning. My name is Pedro Lourenço. I am the Head of Investor Relations at the company, and joining us for this presentation are Mr. Silvio Ernesto Zarzur, Board Member and Chief Executive Officer of the company; Mr. Flávio Ernesto Zarzur, Director, Vice President, and Chairman of the Board of Directors; Marcos Ernesto Zarzur, Board Member; Marcelo Ernesto Zarzur, Vice President, Director of the company; and Mr. Emilio Fugazza, Chief Financial Officer and Investor Relations Officer at EZTEC. We inform you that this event is being recorded, and all participants will be in listen-only mode during the company's presentation. Following that, we will begin a Q&A session when further instructions will be given. If any participant needs assistance during the conference call, please request it through our chat, and in case of a connection failure, please reuse the same link or ID available on our website, ri.eztec.com.br. Also, on our website, you can find the slides used on this presentation in the download center. All information is presented in BRL and according to BRGAAP and IFRS, applicable to real estate development entities in Brazil, unless otherwise indicated. Before we begin, I would like to mention that any forward-looking statements made during this conference call regarding EZTEC's business outlook, such as projections, operational, and financial targets, are based on the company's management assumptions and currently available information. Statements about the future are not a guarantee of performance. They involve risks, uncertainties, and assumptions as they refer to future events and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions, and other operating factors may affect EZTEC's future performance and lead to results that differ materially from those expressed in such forward-looking statements. Now, to begin the presentation, I would like to turn the floor over to Mr. Emilio Fugazza, Chief Financial and Investor Relations Officer. Please go ahead, sir. Thank you, Pedro. Good morning, ladies and gentlemen. It's a great pleasure to be here for our earnings call for the first quarter of 2025. We will begin our presentation on launches. As you can see, there were BRL 616 million in the first quarter of 2025, which is a growth of nearly 32% versus the first quarter of 2024. That is not it. If you look on the right-hand side, you can also see that this is the strongest quarter in launches among all first quarters in the company's history. That is not all. The second quarter will have the same magnitude with the launches we are going to show you soon. To talk about this, we will continue on the next slide. We have Agami Park Residences. This is a launch close to our headquarters here in República do Líbano, in Moema. It has BRL 318 million in PSV, 215 and 290 sq m apartments. This is a high-standard building that was developed by the company. During this quarter, we also launched SP 360°. This is a project that originally came from EZInc. It became a residential project, and it is located on the corner of Ibirapuera and Bandeirantes Avenues, very close to the purple line from the subway. It has BRL 298 million in PSV. 52% of it has been sold as of the date of this presentation, of course. We have additional sales to register in the next few days. These are studio apartments, 24 sq m- 35 sq m. The next page shows what we are scheduled to be launched in the coming months in the second quarter of 2025, starting with Lume House. On your left-hand side, this is in Vila Prudente, very close to Dream View Vila Prudente. This is an area that will have two additional launches besides this one. It was BRL 165 million, and it has apartments from 39 sq m - 71 sq m. Sales are also open for all Studios by EZTEC. We're going to report this next week, but it has a PSV of BRL 106 million, and it's very close to another successful launch we had a number of years ago called Sky House in the same neighborhood. It also has small studio apartments, 28 sq m-35 sq m, and it is selling well. Both of these are 100% EZTEC. The last one on the right is a launch in the company called Pop Osasco. This is developed through a partnership that we have that is specialized for Minha Casa Minha Vida. This is an area that already had a successful launch, Pin Osasco. It is very close to Rodoanel in the town of Osasco. Its PSV is about BRL 110 million, and it will have 500 units, which will be launched in the next few weeks. Finally, still this quarter, and this is prepared for a launch, we have Moved Osasco Residence, which is in Bruçocaba Avenue, right in front of the Bradesco headquarters in a great location in Osasco. This is a middle-end enterprise, apartments between 56 and 72 sq m, and this is the first phase, and we will have an additional phase as soon as we have good performance. With that, we hope to reach over BRL 600 million in launches in the second quarter, which will make the first quarter a historical record for the company, the first half of the year, excuse me, a historical record for the company. Continuing with net sales, we had excellent performance here in comparison to the first quarter of 2024, a significant growth of nearly 30%, and gross sales were BRL 414 million, which led to this result of BRL 378 million in net sales. As you will see in the release, this was one of the lowest contract cancellation numbers among the last few quarters. This really shows the solidity of our sales in the company. It's important to highlight that when we compare to the first quarter of 2024, the difference that we have been seeing in sales is, of course, connected to selling our ready inventory. Launch sales have continued to perform well due to our sales force and our campaigns, which have already started to improve our performance. In conclusion, BRL 1.8 billion is our net sales for the last 12 months. So BRL 1.781 billion in comparison to BRL 1.3 billion, which was our level one year ago. The next topic are deliveries, which are reaching BRL 2.6 billion year to date. On the left-hand side, we can see one of our deliveries that took place in the first quarter of 2025, which is Dream View Vila Prudente. This is a middle-end project, 58% units sold, and you can see at FIT Casa Oratório, the tower that has already been delivered, which is a part of the same project. It was delivered last year. This is about BRL 300 million in deliveries. Until the end of the second half, we will have an additional BRL 2.3 billion, or 77% of the units, which is the private area sold, which means that we will have more units to sell, but lower ready inventory in this, which is the highest level of deliveries of our company's history. Let's continue with financial highlights. Net revenue, it was BRL 311 million for the quarter, up 30% versus the first quarter of 2024, and this matches our growth in net sales. When we look at the quarter-to-quarter comparison, from BRL 427 million to BRL 311 million, we have to consider that there are holidays in the first quarter, there is rain, there are school vacations, which naturally reduce our capacity to execute during this time. Historically, when we look at the last 10 years, only two or three years did we not see this trend. Naturally, we see this seasonal effect in the first quarter. Of course, there is also an effect of lower sales during this quarter, which we hope to reverse for the next quarters. When it comes to gross profit, the most important news in the group about the first quarter of 2024 is, or excuse me, 2025, is our growth in gross margin. Over the last year, it was about 9 percentage points, 8-9 percentage points. That is very important. We also have to highlight two things here. As we mentioned, this is a year of deliveries. In deliveries, there is an important effect. First, as we deliver, we also recognize some savings, which are present here in this margin. We also have adjustments to the present value. In some cases, we have to reverse this adjustment, and that has a positive impact on our gross margins. Obviously, the margin that best reports what is going to happen to the group is the ref margin. I have always been saying that our ref margin is around 40-highs, and that's a very good proxy for what will happen for the company on the middle and long term. The next slide shows the company's financial results. This is about one-third of our results. You can notice the stability on the lower left-hand side of the nominal value of the company's financial results. This, of course, is related to cash investments, debt, but it is also connected to our financing segment for end consumers. We understand that there will be a trend to have more liquidity since loan rates are very high in the last few years. You can see there was a growth of financial results, and origination led to BRL 44 million. When you look at this evolution, you can see that the volume of payments is significant. On our release, you can see something even more interesting, which is the duration of these releases, these payments. It is around 70 months. In 70 months, we will receive over 50% of the total amount in this portfolio because we use the SAC table to a high degree, and these receivables are on an average of 10%. The next topic is our bottom line, our net income, which reached BRL 94 million. It's important to highlight that it went up versus the first quarter of 2024. It's an annualized expansion as well when we look at the last 12 months. The company is organizing itself in a number of things, and that contributes to this net income. It's not only an increase in gross margins, but also a significant improvement over the last few years in the efficiency of our commercial expenses and the efficiency of administrative expenses as well. This can be seen in a reduction of administrative expenses quarter on quarter. We are building up results, and this is taking us somewhere different with our current management. With that, we have our capital structure, which has this composition, as you can see on the right-hand side graph. Our holding now has BRL 933 million in cash, and our corporate debt is BRL 681 million. Our holding is absolutely free. If we have a comparison of the cash burn or cash acquisition throughout this period, we will see that at the holding, we had net cash generation. In our total composition, there was some cash burn because we are using more financing. Our construction execution is consuming a part of this. At the holding, there is a good cash proportion. Net debt is BRL 366 million, and this is mostly based on financing. With that, we conclude this part of the presentation on dividends. Traditionally, we pay dividends quarterly. We have over BRL 22 million to pay, about BRL 0.10 per share. The base date will be May 22, with the payment date for May 30th, 2025. This concludes my presentation, and we will hear comments from our CEO, Silvio Ernesto Zarzur. Thank you, everyone, for being here, as Emilio said. I think this presentation summarizes the company's work. Our revenue does not reflect exactly what is happening. We are recovering some of our revenue over the last few quarters. The launches for this half have either all happened or have open houses. We do not have a risk of execution. For the next quarter, we have something like BRL 900 million in approved projects. We are already preparing our sales offices, which will not be opened yet due to an operational matter. We intend to change the company's level in volume of operations and volume of results. This is a new strategy that is gaining traction. When we look at the results, they are not bad, but there is a combination. There is an adjustment between the directors, the controllers, which does not match our capacity. We are all aligned in changing the company's level. As Emilio said, we are working throughout the year on several fronts, as you can see here, reducing the operational part, working on sales. We intend to improve many things to face this challenge. Surprisingly, the market has responded, and this does not depend on us. It is surprising that it is responding. It is interesting because sometimes studios are higher and then medium-sized apartments. It changes on a weekly basis. At the end of the day, this gives us a good result. Since we are a company that is present in many areas, we are diversified, which gives us a demand across all categories at different times. We believe we will have a better performance in the next quarters. That is all. Flávio, any questions? I'd like to welcome everyone, and I'll follow Silvio's remarks in saying that not only are the directors aligned, but we're also aligned with the board. We have a great land bank, which we have had more utilization to generate capital so that in the future, we can have a better capital structure for our current scenario. Silvio mentioned the development line. We also have the corporate products area, which seems to adjust itself every day. We believe that this year, we will also include one of these towers. I mean, for rental, we're not talking about sales. This all makes the market more dynamic, and we start feeling more comfortable with using the assets we have. That's it. Okay, Pedro, shall we start the Q&A? Thank you. We will now move on to our Q&A session. We'll start with questions from the sell-side analysts who cover the company following the previously established order as long as the representative has activated the raise hand function. As time allows, we'll also address questions submitted via the chat. If we're unable to answer within the allotted time, we kindly ask you to send your question with an email contact to our investor relations team, which is available on our investor relations website. That way, our team will be able to follow up with you. T he first question comes from Bank of America from Ms. Carla Graça. Ms. Carla, you may proceed. Good morning. Thank you for taking my question. I have two on my side. This quarter, there was a considerable increase in gross margins, as you mentioned, and this was due to that reversal of AVP of projects close to conclusion. Can you give us some color on how much that affected your margins this quarter and how much of it came from cost controls and price increases, which have helped your ref margin? My second question is, as you mentioned, this quarter will have a record number of launches for the company. Do you intend to continue with this volume in the second half of the year? In the first quarter, you're at BRL 2.5 billion in launches for the year. Is that what we should expect? Thank you. This is Silvio. I'll answer your second question on the volume of launches. We have a large land bank, and we also have a large number of projects ready to be launched. My answer is that if the market absorbs what we want to sell, if we're able to perform well on sales, we will continue. There is also an agreement among us that at the end of every quarter, we are advancing significantly in our operations. We are going to sit down and look at all of the units that we are going to do in the next quarter according to what happened in this quarter. In July, we are going to have a meeting according to what happened in June to decide if we are going to continue having the same level or the same pace in launches or if we will reduce it. I think what I am saying is very clear. Emilio will answer your next question or your first question, rather. Thank you, Silvio. Carla, thank you for that question and for this opportunity to talk about our margins. Carla, there is a graph on page eight of the release which discusses how our margins are made. This graph tells an interesting story. The products in 2021, 2022, and 2023 had a gross margin one year ago in the first quarter of 31%-38%. Low, mid-30s. This is exactly what we were reporting. In the first quarter of 2025, basically everything is in the 40s except for the launches from 2024, which were at around 28%. What does that mean? This tells us a couple of things. First, we have an INCC component. At the levels it is at, this starts to recompose our margins. This is what we saw in the past, and we're starting to see it happening again, given the way we charge from our clients, the amount of money that is paid by clients, and so on. The second part is related to much tighter or more accurate controls of our suppliers and our construction executions. This brings us to the fact that the construction that we're performing right now is in line with its budgets. The third reversal is AVP. You can see that this reversal also brought for our developments, our margins back to 40% in 2021 and 2022. Why am I telling you this story? When you see 28% of the launches in the first quarter from 2024, now in the first quarter of 2025, it is due to our AVP, which is huge. It is based on the NTM of that period, which was 8%. That needs to be taken into account. There are also launches that have not been or portfolios that have not been impacted by INCC. Slowly, our margins will build up again. Just to answer your question, AVP in isolation is less than one percentage point, or it's around one percentage point of the margin. Does that answer your questions, Carla? It does. Thank you. The next question will be asked by Bradesco, by Mr. Herman Lee. Go ahead, sir. Good morning. Thank you. We also have two questions. The first one is about these studio launches. You have launched many in the last few quarters, and there are also a few on your pipeline. I'd just like to understand if this land was bought in the previous plan, or are you focusing on this kind of product right now? I'd also like to ask about Esther Tower. I'd just like to understand if everything is within schedule and how you see the price dynamics in that region right now. Thank you. Flavio or Marcelo can talk about this, but I'm going to start on studios. Our company looks for opportunities, and we work across the real estate market in São Paulo. We want to be present in all categories. Studios, our focus on studios is a consequence that we are occupying all spaces we can in the market. We should have about 2,000 to launch in the next 12 months. You might find this number strange, but we have several projects that have studios in their product mix. They're not exclusively studio apartment buildings, but rather buildings with 60 sq m-70 sq m apartments, but also 22 sq m apartments. This kind of development has worked very well for us with different sizes. This is not a special strategy for the company, but the company's strategy is to work across all different segments in the São Paulo metropolitan region. Good morning, everyone. About Esther, we're excited because now we are seeing a strong demand for renting in the region. Four or five major players have come to us for rental, not at the price we dreamed of, but this is what we have right now. We're willing to rent it and to wait and see if we can get the best returns possible for this. Our schedule, the first tower is expected to be concluded late this year or early next year. The second tower, we will wait for an opportunity for demand to set a real date. If you have any other questions, Herman, does that answer your question or your questions? That was very clear. Thank you. Have a good weekend. Thank you. The next question will be asked by BTG Pactual through Mr. Gustavo Cambaúva. Go ahead, sir. Hi, everyone. Good morning. I'd like to ask you about this large volume of deliveries that you have for this year. If you can tell us about two things. First, what do you believe this volume will be for the company? It seems to be growing. You show that around 60%-70% of your deliveries have been sold, but you will, of course, sell more by the delivery date. Your ready inventory could more than double if you consider this high volume. How do you intend to work on this inventory? My second question also refers to that. Emilio mentioned the own financing portfolio. How do you believe this will evolve with these deliveries, Emilio? It's a tougher scenario. Interest rates are higher. Do you think the conversion from your own financing is much higher than it was historically? You did not deliver as much this quarter, but have you seen a higher conversion for EZTEC's own financing, or is it closer to the historical levels? Do you have any guidance on the size of this? How far could it go? Thank you. Thank you for that question, Gustavo. There's a right moment to sell ready inventory. It's after we pass on the bank units. We have some gaps between delivering the building and posting a sale. We have an exclusive campaign with our ready products, and we are commissioning. This goes into details, but we're looking at different commissions for brokers. They will have a higher premium for selling pieces of real estate that are ready, and we have a team dedicated to that. Besides that, we are changing a direct financing. We're trying to do this especially for products that are ready. We have a net margin, and how much was it? Over BRL 1,000. And we gave discounts. Even selling less, we can sustain our net margins at 30%. We're going to sell a bit more than our competitors. We're going to invest in marketing, and we have our own financing. With all of this, I'm sure that we're going to do well and have a good performance. Of course, there was a strong evolution in the company's portfolio, but I think Luis can talk about this. Thank you, Silvio and Gustavo, to answer your question. I'll give you some color on what happened in the first quarter. In the first quarter, although Pedro mentioned that volume of deliveries in the first quarter, which was about BRL 300 million, we're working with half of Unique Green in the first quarter as well. That's over BRL 600 million. What is happening is that the first rate we have is about 8% in fiduciary alienation. This means that with this BRL 600 million, we're working on about BRL 50 million for our portfolio. Our portfolio will build up more than this, but it also shows that the volume of receivables is more than that. For 2025, our expectation is that within three semesters, we will have an additional BRL 73 million. That's over BRL 100 million. The net formation will be significant given the volume in sales. We are saying that it should be 50% more in our portfolio than we have currently, given the numbers that we mentioned, how much is converting and how much is being delivered. That gives you some color on our expectations, Gustavo. Does that answer your question? It does. Thank you. Have a good day. Thank you, Gustavo. Have a good day. The next question will come from Citibank from Mr. André Mazzini. Go ahead, sir. Hi, everyone. Good morning. Thank you for this call. I have a couple of questions as well. The first is about branded residences, this concept that we are seeing in São Paulo. These enterprises that have these luxury brand names, and you have some great brands as well, like Lindenberg. That is a kind of branded residence as well. My question is, how much do you think that gives you in price if you have a Lindenberg brand and an enterprise in a high-end neighborhood like Itaim versus not using this brand? Does that give you anything tangible? That is my first question. Also, a follow-up on deliveries. You have many deliveries for the second half of the year. 75% has already been sold. Do you have any idea of how many of these clients are pre-approved by banks? Do you have these figures, and how much would that be in all of these deliveries for the second half of the year? Considering that 75% has been sold, how much cash would that result in, and what would you do with it? Thank you. André, about the Lindenberg brand. This is a brand, as you said it yourself, that is not only a name. It also includes some content. All of their projects are developed by them. They have some attributes that they include in their products that we do not in a medium-sized apartment. Not only does it include their attributes, but a part of it is built by them. They also have a customization structure. They are able to be closer to their owners more than we can. It is not only about being a brand. It also provides some content. That is what I had to say about Lindenberg. Talking about pricing, Lindenberg usually has a premium of about 8%. That is reasonable for how much you pay when you have their brand. This is interesting. I usually say that they do not sell apartments. They actually buy Lindenberg apartments. People call them to buy a Lindenberg apartment. is a traditional thing in São Paulo to have these brand names associated to high-standard apartments. People talk to them. They have a strong demand. They built a building for us. We had some land, and we built an entire building so that we could live in with our parents and our children. We are clients. In order not to have conflicts, this was delivered about one or one and a half years ago. Being a Lindenberg client was also a different experience. It was also very good. All of this has an important meaning for us. Their ability to sell is very strong as well. Our association with them has been very good for them and for us. Regardless of that, we are going to work with our brand individually as a high-standard brand. It's not that we're only going to have this kind of enterprise. We're supporting them, and they're supporting us. We have our own brand as well. Thank you, Silvio. André, does that answer your question? Just to answer your question on delivery and cash generation that can be obtained, the numbers—and I always have this here—is this. We have BRL 2.6 billion in VGB. Historically, we have 40% payments on these receivables, André. We still have to receive 60% of this. With that, we had about BRL 600 million of a taken debt. When we finish it, we have about BRL 600 million at the end, plus the 25% inventory. Out of the BRL 600 million, our question always is, how much you're going to generate in fiduciary alienation on top of that? It's between BRL 250 million and BRL 300 million, given what is already happening. We have a net cash generation of around BRL 300 million generated by these deliveries because the remaining will be generated for fiduciary alienation. That is our cash generation. As we generate, the board will assess the best way of seeing what we can do with these resources. Yes, that was very clear. Thank you. Thank you, André. Good morning. Let's continue. The next question will come from Goldman Sachs, and it will be asked by Jorel. Go ahead, sir. Good morning. Thank you for this opportunity. I'd just like to talk about Esther Tower again. Earlier, you were talking about renting this tower, but I'd just like to understand if there are any conversations about a possible sale. Interest rates are expected to go down in the next half. Are these conversations changing? That is it. Thank you. Thank you for that question, Jorel. This is Flávio. Right now, our focus is anchoring buildings and not selling them. We are concluding the first tower, and then we want to continue with the second tower. After renting it, we live in Brazil, so we know that interest rates will settle at some point. When interest rates are lower, then we will look at it. Right now, I do not think this is the right level of return for a building of this size. That is our line of thinking. Jorel, does that answer your question? Yes, it does. Thank you. The next question will be asked by Itaú BBA through Ms. Mariangela de Castro. Go ahead, ma'am. Good morning. Thank you for that presentation. Thank you for taking my question. I have two on my side. I'd just like to get your take on the market, how you are seeing sales evolve, and if you have any fears for this year. The macroeconomic scenario has been a bit more difficult when it comes to interest rates. How much has that impacted your sales? What are your concerns? My second question is if you're seeing any trends to delaying construction in the city. About two years ago, the companies were talking about delays, especially for elevator material. Are you seeing anything similar for 2025? That's all. Thank you. We still have some deliveries that are late. We're fixing all of this. For us, the issue is not the elevator. We have a very strong partnership with that. The issue is still labor. We believe that with the next deliveries, we will also start getting these due dates ready. We have been able to correct costs, but we're also correcting these delivery dates. We have not surpassed six months. This is still within the contract terms. There was also a question about sales evolution in the second quarter and the challenges of having high interest rates. It is challenging, and it's very challenging, but we cannot give a forecast on what is going to happen because if you look at it from outside, it seems worse than it is. If you look at the economy and so on, you would not sell it because it would not sell, but it is being sold. Our margins can be used in our favor. We can use our margins to our favor so that we do not lose all of our volume. If you have a more compressed margin, you do not have any space. This is not something that we should use, or it's not something that we take that much into consideration. In a worse margin, you can sustain your margins, and there's an advantage in having these margins in being more competitive. We release it by the price sold. If prices need to be lower, we can still sell it. If we can sell it at a higher price, we can also have a higher margin. That's not an issue. In any case, we have an uncertain scenario, and that's why we are looking at this on a quarterly basis. We cannot have this expectation that things will not work. If this quarter does well, we will continue on the third and so on. If it doesn't do well, then we will see. We are not going to stop at the expectation that things will do badly. No. We are going to have to experience each quarter to see what the next will be like. The company is at a level in which we can do that. Does that answer your question, Mariangela? It does. Just a quick follow-up. This challenge with labor, is it a specific kind of labor, or is it just general? Yes, in general. It is a change in lifestyle. People no longer want to work in construction. People want to be influencers. They want to be YouTubers. They want to be motorcyclists. We are trying to reduce the number of people we need in construction so that we can work with more industrialized things. Marcelo has been supporting us with that and engineering so that we can reduce our needs. Mariangela is still on this topic. In the last 18 months, we brought in a new engineering director. He's a person who is recognized by the market. So we've been making some changes, changing scores and cranes and so on so we can have a differentiation. In the next years, we're not going to see this issue. Thank you. Thank you, Mariangela. We'll now hear a question from JP Morgan, represented by Marcelo Motta. Go ahead. Thank you, Pedro. Two quick points. First, in your release, we saw that Esther Tower was at 67%, which was the same level as the fourth quarter. Did this not advance? Was there any other reason for that? My second question is how you see funding conditions at the end with these last launches. Do you see any increases when you have this pre-selection of clients? Thank you. Marcelo, regarding Esther Tower, there are two towers. One of them is much more advanced than the other. That is what we're working on to conclude by the end of the year. The tower was never stopped, but it is progressing slowly. We're concluding the heliport at the top, which is a bit more complex, and then we will finish it this quarter. The demand started earlier this year. To accelerate this construction, there is some time to reactivate your suppliers and rehire. That was the time to do it. Now we're going to accelerate everything so that we can conclude the first tower. Sixty-seven percent of the whole since the first tower was much more advanced. That is why we believe it will be delivered at the end of the year if we have any expressive renter. Marcelo, this is the situation. Our way of doing sales gives certainty to clients. They can have their own financing at the end if they do not have the availability of credit. What happened is that in the last 12 months, rates reached 13%-14% a year. What happens is that people's income did not evolve at the same level. There is a natural difficulty for getting credit, but they already have their EZTEC credit obtained, and we know their credit behavior. Our default level is very low. Not only are we at the end, but this quarter, we were able to have a very low number of contract cancellations, which shows how much this portfolio has been adjusted to our current client's situation. It is not that they were unable to do it, but with us, everything has already been approved. Insurance is cheaper, and they feel that there is some continuity. It is likely that if rates go down in the future, they will be able to migrate without making a big effort, which is what they have been doing since 2021 until 2023. That is exactly right. With pricing, with the SAC Table, this is reduced, and it seems to be doing very well. This gives people confidence in signing the contract with us, and this is guaranteed for them. That is all. Marcelo, does that answer your question? It does. Thank you. Thank you, Marcelo. To continue, we have Safra Bank. Mr. Rafael, please go ahead. Good morning, everyone. Thank you. I would like to refer back to launches. I know that you had a high volume of launches for the year, but I would like to understand the drivers that have made you rethink this strategy. If it is speed, if DSO is below what you are pursuing in some projects, or if you are looking at your inventory performance. I would just like to understand if there are any rules that would help understand how much you want to launch for the year. Thank you. Our inventory cannot go up disproportionately in general. It is very simple. Last year, we launched BRL 1.6 billion. That gives a level of acceptable inventory. Let us say we launched more, BRL 2.5 billion. There is a proportional inventory that we can accept. We will not accept a level of inventory that will cause discomfort for the company. Let us say that our inventory is going up, then we are going to work that quarter to reduce it to a good level. If the economic scenario gets worse, if people stop buying for any reason, we have to stop and focus on sales so that then we can have more launches. That's it. We don't have a guidance commitment or an obligation, but we do want to give good results for the company without putting the company at risk. We're going to be conservative, but we also cannot be at risk. Rafael, does that answer your question? Yes, that was very clear. Thank you. Thank you, Rafael. Pedro. Continuing with Santander Bank, Mr. Antonio Castrucci. Good morning, everyone. Thank you for taking my question. I'd just like to ask about your margins for the next launches for 2025. What is your expected margin and how it compares to this ref above 40%? My second question is, what are you thinking about this robust margins? What will be the trade-off between margins and DSO? Would it be worth sacrificing a part of this margin? Thank you for your question, Antonio. Let me start answering your question on margins. I'm going to base my answer on things that Silvio always says, which is we're always concerned about the pace of sales. You cannot launch a project and then have high inventories. As you can see, in the last few years, our inventory has been flat on nominal terms because what we're launching is also very similar. We are concerned about our inventory because it destroys the future prices of our own launches. Margins have this component. It is built over time. We start selling in a certain way. When we recognize how we sell, we see two important things. First, units are sold by a lower price, and that's an opportunity. Clients have to know that they made a good deal when they bought early. It is also marked by VP, which is 40 months on average between the launch and the final delivery of that. It is over 40 months. NPNV now is at 7%-8%. That destroys margins. What happens is that we live in a country that has inflation. It always varies from 4%-6%. If your costs are controlled, clients will pay 30%-40%, and this 60%-70% remaining is corrected by IPCC. These margins open throughout these three and a half years, and that gives us that 40% margins. You see a lower margin in the beginning and a higher margin at the delivery. That graph that Pedro had in page eight shows the company's reality for the past and for the future as well. Some are better. Some are at the average, but this is a reality for the company. There's going to be a mix again when we see our margins. I believe that margins vary according to the market. If the market is not good, margins are compressed. If it improves, we'll increase our margin. If they pay more, then we can increase our margins. Antonio, does that give you some color on this? Yes, it does. Thank you. The next question will be asked by Ms. Ana Júlia from UBS. Go ahead. Hi, everyone. Good morning. We'd like to ask about your cash generation and your dividends, considering this BRL 2.6 billion for 2025. Yesterday, you approved this amount. If you can tell us what the company is thinking about cash generation and dividends for the year. Should we expect more extraordinary dividends? Thank you. Good morning, Ana. Thank you. I'm just going to recap our account on these deliveries. We have BRL 2.6 billion with 76% sold. This 75% sold is on average 40% paid. It is a possible generation of 60% versus everything that has been delivered. Out of the 60%, in this calculation, I have BRL 600 million of real estate financing to pay. The possible cash generation is BRL 600 million, BRL 600 million in debt, and BRL 600 million in generation. In the BRL 600 million in generation, this is an expectation given what is happening right now. This is not a guidance. It is simply what is happening from the first quarter. We have BRL 300 million generating AF. This remains extraordinary cash generation. As it happens, obviously, the board is going to assess if we're going to have some excess cash, but this needs to happen first. Right. If we really do what we are having in mind, the cash consumption, regardless, is important. When you accelerate launches, approvals, and all of that together, it leads to cash consumption. It is about how much the company is willing to have this portfolio. Depending on that, we can have some relevant cash. If we decide to sell this 18% a year, we're also going to have some cash consumption. There is one other thing. This BRL 670 million that we got through debentures and financing, which is corporate, not for construction, we decided to keep it in cash with some arbitration in our favor so that we can prepare for a future extraordinary event. With all of this together, Emilia said it very well. Throughout the year, we're going to have an important acquisition that may consume the company's cash, about BRL 300 million. There's a lot of revenue besides this one. We're going to sell apartments. There are many things happening in the company that generate much more than all of this. There's a number of expenses that will absorb a lot of this. In our business plan, we hope to resolve this for the rest of the year. Does that answer your question? It does. Thank you. Thank you. The last question will be asked from XP Investimentos through Ruan. Go ahead, Ruan. Hi, everyone. Good morning. Just a couple of things I'd like to mention. First, I'd like to ask about your production financing credit scenario. Has anything changed? Are you feeling that this area is tougher? We know that you had mentioned that it could be for the payment of the extra land. I would just like to understand if this could be a source of funding for production for you. Is that relevant? My second question is about the real estate scenario. The impression we get is that although the level of vacancy has gone down around Chucre, occupation has been high because of big renters. I would just like to understand if your demand has been coming from big renters and if that facilitates this process of renting and anchoring the building. Thank you. Just to answer this question about extra, we are not going to use this cash from CRI to pay for extra. This is reserved for the company's cash, and we will use other resources for extra. This is what I can tell you about the company's strategy. This cash from CRI is for something else, but we do not have any plans for it yet. That is all. Flávio or Emilio can answer this question on rental demands or, yeah, demands. Yes. Ruan, these are towers. Each tower is 46,000 sq m. We cannot start by looking for clients for 1,000 or 2,000 sq m. We are really seeking first, as anchors, big clients with a demand of 7,000, 10,000, or 12,000. These are the clients that have been coming to us. You are right. You are not going to find 7,000 continuous, 12,000 continuous anywhere. This is where our renters are coming from. Numbers have been surprisingly positive, the number of options. That refers to what you mentioned. These are the major renters that we are looking at, and they are the ones who are coming to see our building. Thank you. Juan, just to add to Silvia's answer, you asked about production financing. We have a yearly plan. This yearly plan for 2025 was carried out mostly in 2024. This has already resolved a significant part of 2025 by contracting financing. We have contracted financing for a significant part of the launches that we're making in 2025. Of course, we don't see a lower availability, but we see a lower availability at the rates we had been using before. Considering Select Rate levels, it is difficult for banks. A part of the resources we got may be used, but this has not been necessary until now because we have contracted what we need so now. Ruan, does that answer your questions? Yes. Thank you. Thank you, Ruan. Since we have passed our allotted time, I am going to give the floor to our directors for their closing remarks. Thank you all. I think we had a very good quarter given the current scenario. We are happy with how the company is behaving. We are happy with our results. As Silvio said, we are running the company looking at things on a quarterly basis. Thank you. We are still available. Pedro and Emilio are always available. If you have any need, you can come to us directly. Silvio Yamamura has joined us, and he is an important person in the company. We hope we can have Silvio along with us for the next presentations. With his stair tower, he is the one who is renting it. Not only is he renting it, but he has made projections for that area. He is a great contributor for the company. Thank you. I just want to express our positive expectation for the company's current moment. We are still improving. We have to improve a little bit of everything. This is what Silvio is asking of all of us. We are very happy for the demand we have been getting at Esther Towers. This is a majestic, iconic project. We are sure it is going to be an icon of São Paulo. We still believe in Brazil. This is where we live. We believe that it is one of the blessed places for all of us. Thank you, Marcelo. Thank you, everyone. Have a good weekend. EZTEC's Earnings Conference Call is now concluded. As mentioned, do not forget to check out the materials available on our website. We hope that helps you. Thank you for your participation, and have a great weekend.