Good afternoon, everybody. Welcome to the Fras-le Universe 2022. This event that takes place in a hybrid format in person at the Nakata Complex in Extrema, Minas Gerais state, where the distribution center of Fras-le is located, and the shock absorbers plant of Nakata, and also with live transmission through our YouTube channel. For Fras-le to remain connected with its investors and other stakeholders, it's fundamental to continue to grow and innovating for a better future. That's why in addition to the transmission in Portuguese, we also have translation into English and sign language interpretation. We also have a long-term partnership with APIMEC that once again is sponsoring this event. We would like to explain that the statements made in this presentation regarding Fras-le's business perspective, projections and results, and possible growth are only forecasts and thus are based on expectations of the management regarding the future of the company. These expectations are highly dependent on market changes, the economic general performance of the country and the industry, and can thus be subject to change. During this event, our executives will present the challenges, perspectives, and strategies of the company with the following agenda, Fras-le of the Future Now, which will be presented by our President and CEO, Sérgio L. Carvalho, and then we'll have a business panel with our officer, Hemerson de Souza, Marcelo Tonon, Eduardo Manenti Vargas, and Guilherme Adami. The second panel will be on Pioneering Innovation with Alexandre Casaril and Cesar Augusto Ferreira. We'll have a brief ten-minute break between presentations, and then we will have a panel on spare parts market, a resilient market, with Sergio Montagnoli and Paulo Gomes. To end, we'll have our Superintendent Director, Anderson Pontalti, talking about our radar of operations and ESG. At the end of each presentation, we will have a Q&A session. In-person participants can raise their hands, and our team will bring the microphone to you. If you are watching online, you can participate sending your question through WhatsApp. The number is 55 55 499 626 9709. To continue our agenda, I now invite our CEO, Sérgio L. Carvalho, to start the presentations. Thank you, Jessica. Thank you, Sérgio. Good afternoon, everyone. It's a pleasure to be here with you again. Thank you for your support and participation and those who are here in person and those who are watching remotely. Also, I would like to thank especially David Randon, our Chairman of the board, and Monica, also a manager, who is here for our event. It's always good to get up to date. We had a hard pandemic. We have several sections where we communicated, trying to do our best. In the beginning of the year, we had several sessions associated with the follow-on of Fras-le and the re-IPO. It's always good to have an opportunity to be together and to align our ideas and to share the guidance for the business and to hear from you what you think and to try to answer your questions. The agenda will be, intense and very nice, and feel free to interact with us as well. I would like to start getting you up to date about Fras-le. Fras-le had a revenue of BRL 1.5 billion in this first half. If we analyze this year, we are talking about BRL 3 billion as net revenue for the company, BRL 231 million or 15.5% EBITDA margin in this first half of the year. It's a very good result. If we look at the last three years, we had an EBITDA CAGR of 48%, which is a growth rate of our margin, EBITDA margin, very significant, very good. We are, as we are saying, a traditional company, 67 years of age, more than 7,000 employees. We have a leadership position with many factors in operation, six distribution centers. Our products can be found in 120 countries. We are a public company. Majority owned by the Randon Companies. What we have highlighted more recently is that Fras-le is a consumption goods company with 87% of our revenue, sometimes 90%, is related to consumption goods. We work, operate in this ecosystem, in the independent market of spare parts for automotive, and our dynamics is very different from a capital goods company. We discussed this a lot during the follow-on process, but it's very important to have this clear understanding about our company. We have a global presence, even though our focus is concentrated in the Americas, as you can see in this plot. 60% of our revenue is in Brazil in the light vehicle line and the heavy duty. In the other countries in South America, we have 18% of our revenue also working in the light and commercial lines. In North America, 16% more concentrated in the commercial vehicles. 4% of our revenue is in Europe, Middle East, and Africa, where we operate predominantly in the commercial vehicles line, and 2% of our revenue come from Asia and Oceania. We have a leadership position in South America and Brazil and in North America as well. I don't know if you know this, but around 40% of the American market of commercial vehicles use Fras-le's friction material, both as assembler and as spare parts. We are leaders in North America. We have a global footprint. You can see the pictures of our centro in Caxias do Sul, of Fras-le Controil in the city of São Leopoldo, close to Porto Alegre, Jurid in Sorocaba, São Paulo, Fremax in Joinville, Santa Catarina state, and Nakata here in Extrema, Minas Gerais state. We have all these operations that you can see at the bottom. Our operation in Fayetteville, Alabama. We have our offices in Detroit. We have a distribution center in the Netherlands and offices in Germany, an operation in Argentina, three operations in Argentina, a factory in Uruguay, production in China, production in India, and we have a distribution center in Colombia as well. We have a very diversified business model. This is very important. I was talking with my friends during lunch, and we have been discussing this a lot, the importance of having a business model that is more stable, more robust, and that is not subject to so many market oscillations. In this first semester of 2022, we had 87% of our revenue in the spare parts area, 13% with OEM, 39% with commercial vehicles, and 61% with light vehicles. 40% of our company is from the international market and/or export from Brazil or production and sale in other countries, and 60% domestic. This mix was used to be 55% international, but with the last movements that we did in Brazil, we reduced a little bit our international share, and in the future, we want to increase again the international share. We have a diversification in customers, and in many ways, even in product lines. Today, the friction materials represent 51% of our revenue. Other components like servo brakes, master cylinder, hubs, brake discs represent 18%, suspension and steering, 20% of our revenue, powertrain components, 6%, and others representing 5% of our revenue. I showed the diversity, geographic diversity in the previous slide, and now here you can see how our business is diversified, and this is part of the resiliency that we have in the Fras-le business for revenue, in addition to the fact that the spare market has this characteristic of being very different from the production of trucks and automotives, which is good for us. The 13% in the OEM market doesn't mean that we have an aversion to assemblers. No, we like products that are, or that will lead to a higher replacement percentage. For each pad that we sell to an OEM, we will sell 6 or 7 times more in the spare parts. That's why those, that percentage becomes a much higher percentage as spare parts. That's. It's not that we have aversion to OEMs, but it's not that, but we like products that will leads to this type of mix. We work in several segments. As I said, we have a focus in recurring and non-elective products in the braking system where we have friction material. It's the origin of Fras-le, our most traditional product, but we have brake drums and pads and brake fluids, and this is in the category of products that are wear products. You need to replace them, but you don't have other option. You need to replace it. It's not like if you crash your car, you can keep driving it, and it's not a problem. If you don't have a brake pad, you can wait for one week or two weeks, but you need to change it. Without the steering wheel, we won't drive your car. We like to have a portfolio of products that fits this category of components that wear, components so will lead to replacement and components that you have no other option. If there is a problem, you need to replace it, and this is part of our strategic vision. All the movements that we've done are aligned with this business view that we have. We have a strength, and I'm talking only about the distribution in Brazil, the independent market in Brazil. We have a structure with more than 12,000 SKUs. We have five distribution centers in Brazil, and we are in consolidation. You had the opportunity to visit the facilities here and seeing this process. More than 39,000 square meters of area in distribution centers only in Brazil and more than 47,000 positions of pallets associated to that. We have a lot of strength, space, and structure to serve our spare parts markets. At the other end, we have 340 distributors in Brazil, more than 1,300 delivery points. A large number of the Brazilian shops works with maintenance. There are some that work only with some types of repairs. Those that work with us and with replacement, we have 75,000 shops that have Fras-le products in Brazil, and around 90% will have Fras-le products. We have a sales force with 87 people, professionals, sales professional and support professionals. We have all this structure to serve the clients that is so key in this segment. It's difficult to say if we are the largest in Brazil in this segment because our main competitors do not share their information, so we don't have very clear. It's not possible to affirm that. What we know is that we are there. We are maybe the top one or the second largest in Brazil, something like that. What we are showing is that we have the largest distributor, number one, and the tenth following the ranking and our positions. The largest distributor, we are the largest supplier for them. The second largest, we are third and fourth, we are the largest for them. The fifth place, we are the second. In the sixth distributor, we are the first, and seventh, eighth, ninth, and tenth, we are the third largest supplier. There's a large gap between the first and the second. The top one there is much bigger than the others, so I guess you can make a mental calculation, and I think we are there. We are probably the largest in Brazil in the spare parts segment. We have well-known brands, Fras-le, Lonaflex, Controil, Fremax. Now we are developing NAKATA also. We work with light vehicles, commercial vehicles, and motorcycles. We received awards in other years and this year as well. We received an award by Sindirepa as the best one in the year in several product lines, aftermarket. Also, we were awarded, and Nakata is the preferred brand of mechanics as top of mind. In the other years, we received awards, and we continue to receive, and this is very important for our business. We have this very robust and diversified mobility model with a global presence with customers in all sectors, resiliency through diversification in markets, segments, and geographies, and also customer base. I understand. You want more free time. Your meetings are now moved to next week. Here is a song for you to start the day with. Okay. Come here, mate. Time is on my side. Am I. Time is on my side. How are we building this future? I don't want you to get lost in this slide, but we have this vision. This vision was published in our sustainability report. This BRL 4.5 billion is not a guidance. This is an ambition of our company. This was published in our sustainability report. We have a process of strategic planning that sometimes I joke with some of you that if we were to give a lot of details of our plan, we would need to eliminate you because this is confidential. What we can say is that everything that we've been doing is aligned with a strategic view. We have a one-year plan. It's an operational plan. The budget, how much we want to achieve the next year, this is very important. We have a 5-year plan, and this is where we invest a lot of energy to create this plan, to discuss what the competition could be doing, what are the market trends, what is going to happen in each geography. Based on several items and trends and changes in the law, we develop our plan. Based on the previous cycle, and we have already shared this with you right in underscoring several opportunities, we create a plan, and we say, "Look, we want to create a powerhouse in the spare parts for several reasons." It's a profitable business. It has a more resilient revenue. It has a cycle that is more robust. It doesn't vary so much. In the last 10 years, the production of trucks has varied 370% between the top and the bottom of the curve in 10 years. Trailer is 280%, and spare only 40%. There is variation, but it's much less than the OEM product. We had this reason to invest in this segment, and we wanted to see what was going to happen with electrification, with self-driving vehicles, what was going to happen with these technologies. We wanted to buy time to think about this all. That's why we decided that investing in spare parts is important, and that's why we did all these movements. We already shared that. The second point of this plan was related to investing in smart materials. Everything that is becoming a reality now, Smart Composites, NIONE, it's related to that which we defined five years ago to be our strategic plan. What was our reason? Again, our crystal ball here, we don't know exactly what's going to happen with new technologies. We were starting five years ago to understand better what was going to happen. We knew that, the lighter the vehicles, the less energy they are going to consume, be it in a diesel motor or engine or electric motors. This is a trend, so investing in smart materials is another safe harbor for us, and that's what we've been doing. The third point of this plan, we were talking about to become more global, to increase our share in some geographies. Everything that we've shared to you in the last few years is related to all that. We have our plans for the next five years. Some part of that plan we have shared with you in the sessions that we had in the beginning of the year as part of the follow-on. This is a strong point of our success. As you have a plan, and our plan involves a lot of details, and this detail here increases the chance of being successful. It's not a plan to say, "Look, I'm here. I want to come here," and you don't have any idea of how we're going to get there. Those that make plans like that, those are desires, those are intentions, but you can't call it a plan. To call it a plan, you need to have detail, you need to have strategy, and you need to have execution. This process, we're bringing it here to say that it's a robust process that this management team invests a lot of energy to create and does this all year round. Strength of management, it's a very important item. Maybe it doesn't have so much glamour as talking about new technologies, but you can have the best business model, you can have the best market position, the best name possible. If you don't have management, if you don't have capacitation, the speed that people can destroy a company is scary. Three years, five years, you can get a huge empire and decimate it. You will see in the talks that will follow, the Fras-le team that will share with you, and you're gonna feel the competence, the experience of the team, the international experience that the team has, the diversity, the inclusion that we have. The capacity, the motivation. It's a very strong team. It's one of the strengths of Fras-le to have a good management team. It's not a Superman that does everything. If the Superman would leave, then the company would collapse because it's just one person. There's not a Superman. There's a management group that's very strong, extremely capable, and this is one of the big strengths, despite not having so much glamour as talking about nanotechnology and materials, right, Cesar? But it's extremely important for a business. We have our ambition, ESG ambition. You can see, I'm not going to read it to you. I want to mention one of them, which is the reduction of greenhouse gases in 40% by the year of 2030. We are well in that direction. We have a map how to get there, several actions, a long plan. Our energy matrix that we mentioned with pride, a Brazilian matrix that's very clean from hydroelectric. For this, the energy of these hydroelectric plants is not considered clean. This is one of the villains of greenhouse gases. We have a very robust plan that involves heavy investments. We have today inside Fras-le company since July this year, an operation in China generating 20% of our own energy with photovoltaic cells. By the end of this year, our first investment, heavy investment for the future years to meet this objective. The emission itself is what we brought to the public one year ago. The work that we do behind this is greater and deeper and than what we brought to the public. The developments in terms of product, circular economy, there's a lot more than we do than what we brought to the public. The last 5 years, we had a variation in Latin America where we were among the top 10. We are in the top 3. We can question this. Maybe we are in the number one position. It's hard to be precise. We increased our share in terms of numbers of countries. Today, we have 49% of our revenue is not associated to friction. We have 17 operations, industrial operations and distribution centers compared to 6 that we had in the past. We mentioned in other opportunities, in the last five years, we had a growth in our revenue of 3.2 times folds. This semester, we're in the same path. We are in the same growth rate, quite large. Our EBITDA grew 3 times the last five years. We continue to grow at a very good rate. We have many more brands recognized by the market. Therefore, we have created a lot of value for all of our shareholders. This slide I've shared with you all of our expansions and greenfields that are associated to one of the three axes, either internationalization, increase in capacity, or portfolio expansion of the channels, if you would like. The first cycle has been done. We're working on cycle two expansion of our company. We had record production. This very capable team that you see here has been great. Just to give you a few numbers, maybe that doesn't make a lot of meaning to you, but I can guarantee these are wonderful numbers. 65 million brake lining in the heavy line. We are the biggest heavy friction material in the Western world, maybe in the entire world. The numbers in China are hard to trust and get a hold of. So I can't say we're the number one in the world, but in the Western world, almost sure. The 2.2 shock absorbers, 4.7 discs, 2.6 million actuators, brake actuators, 6.1 bearings. These are components of the suspension and the steering system. These numbers are very good. Looking into the future, we will continue in our journey of innovation to bring new technologies. We're going to continue to do acquisitions. We did a follow-on process to have a good financial leeway. Thinking about continuing with our robustness, we don't want to change too much and make our model fragile, exposed. We will continue with diversification. Yes, we will continue with internationalization. In terms of technology innovation, we have a panel. I'm sure this will be presented and discussed in detail. Just to give you four examples, Nabi, a different material that doesn't use resin. We were able to eliminate resin in the friction material we did in our lab. Correct me, Casario. 25% reduction in cost, and we reduced the press time from 29 to 1 minute. Technology, wonderful technology, and we're gonna use it for other products. ESG in the heart, surreal how important it is. Auto Experts that started with a e-catalog, today is becoming a platform, a sales platform, a wonderful future, a reference, a national, a domestic reference. Smart Composites, we spoke about this division of Fras-le that will be a strong arm of Fras-le in the future. Huge potential. Nion, NiOne, we talked and other opportunities. It's still crawling, let's put it this way, but we are very optimistic with the future. There are wonderful things happening. This will be extremely important for the future of Fras-le. In this industry, we have changed our operations. During lunch, we talked a bit about this. We have new technologies for the industry that we're bringing and creating in-house, some technologies through Auttom, through our RTS and Randon Tech Solutions. When you visit our operations, you're gonna see more and more all of our equipment, our solutions generated in-house. If you imagine a cell like this and it costs BRL 1 million, when we have the expertise and the know-how to do this in-house, this solution for us costs BRL 650 thousand instead. Sometimes 600 thousand, sometimes 700 thousand. If you have this defined, if you save 30%-35% per cell, we will be able to do many more cells, and as time goes by, we will have an advantage with the competition, compared to the competition, a lot larger. Even if they have the financial means to do the same investment, they will pay more than we pay here. We have the expertise. It has been a success story, and we decided to purchase Auttom to continue and accelerate this success story. We want to have, yes, a competitive advantage through our processes, industry process that we can protect and do more with less. Does it make sense, guys? Finally, always valuing people. This is extremely important in our culture. Listening, recognizing, motivating, taking care of health, security, environment, safety, preserving our values. This way, we are doing our part to keep your life in movement. Another part of this we have shared with you in other occasions. Some are new. What is important is you know that we have a plan, we have a future vision that is very clear. We have a plan on how to get there, and we are building a track record. Those that follow us closely can see that what we spoke years ago that we would do, we're doing it, and we're surpassing it, and I'm sure that we will continue to grow at a high rate, overcoming expectations, delivering great results, and creating value. Guys, thank you so much for your attention. Enjoy the event. We're gonna have very nice debates. Get your questions ready because the best part of the talk is the Q&A session. Thank you so much. Hemerson. Thank you, Sergio. Now we will start the panel business view, where the executives are gonna talk about business diversity mentioned by Sergio. Now invite our Investor Relations and M&A, Hemerson de Souza. Hemerson de Souza, I'm sorry. Good afternoon. Thank you everyone that's present here in Minas, in Extrema, and those that are listening to us through our digital channels, YouTube for Fras-le. It's great every year to talk about Fras-le Universe and talk about what we see for the future and what we're doing for our business to get better. Give me 30 seconds outside of the operations agenda as an IR of Fras-le, because this panel maybe is new, and it has a unique objective. Many people, many of you were away from the Fras-le case for some time. We understand Fras-le has a lower liquidity. We're still growing as in the capital market, and due to the follow-on event that we had this year, we called it the re-IPO, a lot of people are re-seeing Fras-le. We wanted to bring to you today the main executives of the operations to talk about product, to talk about potential, to talk about opportunity, and we will have time to show what we can do better. What we have for the future to make this company better. Especially, I'm gonna start, I have the privilege to talk with operations from the units that I'm responsible for, and I'm gonna talk about Controil. Controil, we joke that Controil went to Fras-le a milestone in 2012 because Fras-le, we were working on light line a little bit more modest, and at that time, light line was 20% of Fras-le business. Today, light line is 75%. Heavy line, 35%. We turned this around with Controil. It showed that line, light line was good. There was a nice potential for growth. Then new business came in. We grew in pads. We grew with Fremax, Nakata, and light is 75% of Fras-le. We have a number still about 400 employees. We have a market share of 20% in the main lines of Controil to show you how much we can still grow in terms of support and market service. This company did BRL 170 million. We took some time to tune it, fine-tune it, but we can say that operational, because some are distribution, Controil is one of the roundest companies in terms of operation. We have very good margin in this business. We got the pace right, and we have grown in a singular way, and we have great business object of perspectives. We're going to increase capacity because we're selling well. Almost nothing international, only 5% is export in the Americas. We have robust opportunity and spare parts like any other business of Fras-le, very robust, and we have a lot to grow. 20% is available to advance. Some lines a little bit less, some line more, but this is 80% of the use that we have. We know how much important it is for the brand to grow. We have an offer, relevant offer, and the possibility to broaden the offer, what we already offer at Controil, and we have an important know-how to maintain the polymer manufacturing for in Nakata also. The second operation that we have leadership is called Fremax. Fremax is in Joinville. It's an acquisition that we did in 2018. Also an operation that is very important in what we assembled in terms of powerhouse for spare parts. They have a turnover, a revenue of BRL 300 million, and we're rounding this. We have a unique difficulty. We have 100% capacity taken. We can't grow. We are at the limit of that site in Joinville. We have created alternatives here. We're talking to be able to grow. The fact is, if we had two Fremax, we would sell two Fremax in terms of market demand. It's a company that has 40% of its sales for the international market, very concentrated in spare parts and basically light line. 5% heavy line. It's an area that we can expand, but the demand in this area is a little bit less when we compare to the light line. Important, Fremax is a premium brand anywhere where we are at. In Europe, U.S., South America, recognized as premium. This opens doors for Fras-le in some more demanding markets. We can broaden our offer to continue to grow. We have a broadened capacity in this unit, but it's an Achilles heel for us. The demand that we have today, what we receive is 50% greater than what we can offer. It's obvious that this is a path. To use resources for volume one, we give more capacity to Fremax. For external market is one of the most important expansion fronts. US especially, and Europe has been a market. The demand of this component very much, and unfortunately, we cannot support these markets the best way possible. Finally here, we have also, I answer for Fras-le Europe, and Europe has a specialty. Europe is the access to the command cabin. Why? Because a lot of the OEM market happens, a mature market, very hard to be operated. We have there $27 million in sales, and this is 25% Fremax and 75% Fras-le heavy line. We don't sell brake pads, but a huge opportunity, so huge, we have designed a strategy to be able to advance. Anderson is gonna talk more about this. An agenda that can involve acquisitions in Europe so we can purchase fast track, so we can sell faster and access relevant markets for us also. I've shown this, our slight presence, which Sergio showed, 4% of sales to Europe. Despite being a hard, complex market, it's a market that has a lot of opportunity. Obviously, we have a distribution center. We have an office in Germany. We have a team dedicated, a support position to service the factories. It's a relevant challenge for us. Not impossible, though. Finally, I will finish my part regarding operations. I think that now, Guilherme, I'm gonna pass the floor to Guilherme that's gonna talk about the operations that represent in Fras-le Universe. Thanks, I'll be back. Thank you, Hemerson. Good afternoon, everyone. It's a pleasure to be here with you. It's very good to see some familiar faces. We were missing this proximity with the audience, and we're very happy to be here. I'm Guilherme. I'm responsible for the light vehicle lines, friction, and pads, and in addition to this, I am responsible for the Fras-le aftermarket for Latin America, from Mexico down. It interacts with the other businesses in exploring the potentials for this region. Quickly I will start with our 2 light vehicle line companies. Fras-le, we have a light vehicle operation in Caxias do Sul and another one located in a strategic region in Sorocaba, close to all the system companies and the assemblers, the OEMs. It's very important for our company. In addition to the light line, it can work as a leverage for the other categories. These two operations, they include 860 employees. Most of them are in Caxias. 750, more or less, are in Caxias, and the rest are in Sorocaba. Jurid is a JV that we have with a foreign company. Of course, our participation is larger, and Fras-le is leading this business. Both companies, Sergio mentioned 1,100-1,200 points of sale. There's two operations with 800 points, 14 product lines, and 4,000 SKUs. I think this is a specific thing that we've been learning. Emerson mentioned our historical resistance to this, to the light line, and maybe I could translate that this brings a higher complexity in portfolio because each car, each brand in the same year, we were talking during lunch, the same car from the same brand can have a different, pad. There are some cases where we have three or four types of pads for the same car in the same year of manufacturing because they change the cars, and they adapt the parts. This brings a lot of complexity, but we are leaders, as Sergio said. We're adding the market share of two operations. We have also the Lonaflex brand, so it's Fras-le, Jurid, and Lonaflex, and a little bit of Nakata. When we purchased, they also worked with friction, so 38% adding up all our companies and for pads, 22%. This is almost BRL 400 million in revenue. 80% is from our participation in the spare parts in Brazil's. This explains the growth path that we have, exporting more and seeking to resume through Jurid the participation in the OEMs. In the past, Fras-le had a participation or a presence, a significant presence in light line in the assemblers, and for several reasons, we moved away from that business, and with the acquisition of Jurid, we resume to explore this line. When we look at the growth levers, without a doubt it's growing Latin America. It's a little bit more difficult to export to the United States and Europe from Brazil, so we need to think in a different way for that region, so our main driver is in Latin America. It's our backyard. We have operations, we have distribution centers, and we have people to sell. What prevented us from growing was the portfolio, but through some strategies, we were able to overcome that barrier, and we are going to explore more the LatAm market. Without a doubt, the OEM business. With the incorporation of Jurid, we are increasing our level of technology and knowledge of the market. We've won a first assembler project two years ago. We were named for another one, and the number of quotations that we are receiving, a lot due to this international logistics, this is a window of opportunities that was open to us, and we are exploiting that. To conclude, the motorcycle business, we already participate both in pads, so Nakata is well established in this market, and we want to use the synergies with Nakata. I didn't mention composites in our presentation, but we've been developing this segment. I'm with the business development and sales and others with the research and development, and when it becomes stronger, it comes to my team. I don't have a slide here because it would be redundant with what they are going to present, but Casario will talk about this later. Composites is within my team. Advancing and talking about the region that we call SSC, it's Spanish-speaking countries, so all the region from Mexico down, except for Argentina and Uruguay, that we treat them differently because they have a very specific scope. This is the SSC region. I brought some numbers here. 40 countries, 400 million inhabitants, and 81 million vehicles in the fleet. We're talking about twice the size of Brazil in fleet and population. It's a very significant region. We have a presence, a strong presence in linings in the commercial line. We always had, Fras-le always participated well in this business. With incorporation of Nakata, in the same way, we have a important relevance. I brought here the principal, the main products for the region with important market share. We have a sales force that is very representative. We have five offices in Ecuador, Peru, Chile, Colombia, and Mexico. We have a sales force to explore this region with all the synergy of new companies that are part of the Fras-le team. We will have the right team to explore this region. We also have, I believe, five or six years our warehouse in Cartagena. An interesting data, Cartagena represents a third of the sales in the region. We've been growing our warehouse, and we have a stock close to the customer, and this is allowing us to bring more, to access more businesses in the region. It was an important movement that we did due to this logistics issue. This is a differential and an advantage for Fras-le that we will continue to explore. Now, talking about potentials, without a doubt, it's continuing to incorporate new product lines of the companies that we acquire in this DC of Cartagena. If you looked before, our operations were concentrated in linings, and as we incorporated Fremax, Controil, and Nakata, now we have a mix of light vehicle and commercial vehicles. Very interesting, the region. There's space for Controil, for pads, for shoes, and Nakata, and all the business units together with this team have been working on increasing the portfolio to take advantage of these opportunities. To close this chart, if you look at Mexico and Colombia, we're talking about 70% of the fleet, and they are the two large target markets where we are investing our time. Pontalti is going to talk more about this. I know you are all curious about this. With all the funds that we capture in the follow-on, without a doubt, Mexico is a destination that is part of this strategy, and there's a very important look to it. To close, we are in Argentina and Uruguay, the easier region in the country, in the world. There is no problems. Everything works well. You can sleep peacefully. No reason for concern. All jokes aside, I, we have a very well qualified team, and it makes us very confident. It's a team that has more than 40 years of experience in the automotive market, and they are certainly listening to us. Argentina concerns us, but it doesn't concern us because the team that is there is very good. We have four operations in the region. Sergio mentioned we have three in Argentina and one in Uruguay. The only one that is a factor is Fanacif. They produce linings and pads in Uruguay. This was very useful during the pandemic. Many orders came for linings, and having Fanacif for us, it was very interesting. Eduardo is going to mention the opportunities for blocks. Fanacif was a wild card within this new world that we saw in the last two years. We have operations of Fras-le and Armetal, a distribution center very similar to this one where we are. We'll open a new address in the next month. Farloc is packaging, packager of brake fluids. We have a leadership position in almost all areas. Fras-le is a well-known brand, just like Fremax and Controil. We have a very important position, and it occupies an important position in the consolidated of Fras-le as a whole, with almost $56 million in net revenue for 2021. The big opportunities there, always looking at the risk as well, is to continue to grow by increasing portfolio. There's lots of things that Nakata launched that is just a plug and play in that region. We share the same chain, the same. There's a lot of synergy. Everything that Nakata is a leader here, the idea is to mirror it there. That's the path, and I'll be available later to answer your questions about this, and I'm certain they're going to come. That's what I had to say. Jessica, with you. Thank you, Guilherme. Now, I call to the stage Marcelo Tonon to continue the presentations. Thank you. Good afternoon. I would like to thank. Also, I will use 30 seconds to say thanks to your visit here in the Nakata complex, and especially because now in September, we'll be celebrating 2 years that we are part of Fras-le, that we are a Randon company. Doing this event of Fras-le Universe, this first in-person event after COVID here in the Nakata complex, fills us with pride. On behalf of the 513 protagonists of Nakata, we would like to thank you all for your presence here, all the management, the V, the board members, and everybody who is watching us. Talking quickly about Nakata comes to consolidate the powerhouse of spare parts. Nakata is an acquisition that brings to the Fras-le group a portfolio of products that is extensive and a portfolio of wear parts just like the friction line. We have most of our products, I say that they don't break. Our products, they suffer wear, and they need to be replaced. They are not of elective choice, they change, they have a useful life and after that, they need to be replaced. Just as I said, we are 553 employees. We have 15 categories of products. Of those 15 categories, one category is manufactured by us here in Brazil, which is our shock absorbers plant. If you are here, you have the opportunity to visit today. Fourteen product categories, we have agreements of manufacture with more than 100 companies around the world. Basically, Nakata in 14 product categories, it does the development, the product specification, it verifies companies that have capacity to produce. We transfer technology for the production and quality control, and we hire those companies to manufacture it for us with our brands. These companies, we call them co-manufacturing, and usually when we discuss these companies, when we talk with those companies, we always say to them that they are our manufacturing arm there, and we are the commercial arm for them here in the region. With that, we have a very prosperous and respectful relationship. Our main product lines is a line that Nakata is celebrating 70 years. It was founded in 1952 by the Nakata family. The first product was suspension and steering parts. We are market leaders in that with 18% of market share. Our... Which is not our main, our most important product. The most important is shock absorbers. In revenue, we are still the third force in the market with 15% of market share. However, with 2020, when we had the vote of confidence of Fras-le and Randon that allowed us to change the factory in Diadema to Extrema, from that moment with this new factory, today we already have a growth in shock absorbers of 22% compared to our last year sales due to this new plant, which is still working at 50% capacity. We have room to grow, and we have a strategy designed to grow and occupy this capacity. In constant velocity joints, we are the second force in the market with 19% of market share. In addition to this operation in Extrema, where we have the shock absorbers plant and the distribution center, which is not more a distribution center for Nakata, but a DC for Fras-le, we today are distributing the Controil products and Fras-le, Lonaflex, some Randon products, and for the next months, we will be distributing the Fremax products as well. The problem is that Hemerson has Fremax sold. It will be just cross-docking done here because everything that is produced, if we had two Fremax, we would sell everything. There are good things coming. In addition, we have an office in Osasco. Hey, Tony Rickardsson here. This office is where the management part is and engineering of the other fourteen product lines. It is located on this site. In 2021, we were close to BRL 700 million of net revenue. It's a spare parts company, independent. We have a small sale to special clients. Our business, 98% is spare parts, and especially our business was for the domestic market. Why is that? Because our plant of shock absorbers in the other site where we manufactured didn't have the competitiveness that it has now, and the other products are products that we bring from the world that we develop, and we hire the manufacturing abroad, and re-exporting it from here is very difficult because the clients will need to pay twice for the tariffs. We will have our warehouse in Colombia. The parts don't go through Brazil. We use the same suppliers base that we have around the world, and Colombia brings the products directly from our suppliers without going through Brazil. In the same way in Argentina, we have that abroad portfolio available. In Argentina, we need to consider the situation. There's some specifics there, as Guilherme mentioned. Our growth path, the Nakata brand is a brand that became a spare part brand, and it had to establish its place in spare parts business, even facing all other strong brands. With all that work, we reached this status of being the preferred brand of mechanics, and today we are the first or second brand most remembered and chosen in the product categories that we work at the point of sale. Another opportunity that we need to consider in this market leadership and market share in key lines, especially now in shock absorbers, where we have a factory, a modern factory that is receiving more investments in automation. We'd be more competitive. We think that there's still room for some M&A and/or greenfield, but for selected products because it needs to have the competitiveness that we need to localize it, but we need to do some localization a little bit better, working strongly to consolidate the one-stop shop of parts. Our main path for growth will be to leverage all the structure of the group to grow in OEM and export with our shock absorbers plant. A bit of Nakata, that's what I wanted to share with you. I thank you for the opportunity, and we're available later for any questions. Eduardo, please, it's with you now. Thank you, Tonon. Good afternoon, everyone. It's great to be here with you. It's my second opportunity to talk a bit about the commercial sales line. Leaving aside the light line that Hemerson spoke so well and Guilherme and Tonon, now we go to the heavy vehicle world. Our world of heavy is divided in four operations. We have the ones in Brazil, in Caxias do Sul. We have factories in China, factory in India, and factory in the US. Talking specifically about our operations in Caxias do Sul, we have over 1,300 employees. As Sergio mentioned, this factory, the biggest factory of friction material in the world. Nobody produces what we produce under one roof, not even in China or India. Some companies we had the opportunity to get to know. With this operation, we manufacture the pads and shoes and linings for over 125 countries. We have over 12,000 SKUs in this operation, producing parts for all of these continents. It's an operation, when we talk only about Brazil, that delivered in 2021 BRL 580 million. Our growth this year will be two digits plus. We have 49% of our market is for exports, 36% in spare parts, 8% OEM, and 7% of our business is already for rail, which is a huge opportunity that we have not only in Brazil but also abroad. Even with 8.2% market of OEM, we have 90% of market share in Brazil. In other words, from every 100 cars, trucks or buses, I'm sorry, 90 come with our product. We have in Brazil almost 50% market share for spare parts and 80% for rail. When we go to the US, our factory located in Alabama delivered $49 million in revenue, $47 million. A good part of this manufactured in Brazil, and it already has 50% market share. These are updated numbers, 50% market share in the US market. We are leaders in Brazil, we are leaders in the US, we are leaders in Argentina, we are leaders in the Americas. With this opportunities, of course, we have opportunities in the Americas we can grow. We must defend the market share that's so important for us. The big growth opportunities are in Asia, Europe and Middle East. In Fras-le China, located in Pinghu, we already have 150 employees. We have an operation, new operation since 2017. We have a new site with 1,500 sq ft. We've already produced 300 SKUs. We have lining and pads. That's why in the future I'm gonna talk about our trading company. We already have a good structure in China. Last year, with all of the challenges of the pandemic, we had a revenue of BRL 17 million in that operation. This year, we're talking about higher values. Even with the lockdown, it does still happen in some provinces of China. Our growth strategy is very much based on the selling to the Chinese market. We must grow in factories in China. We have closed, especially for commercial pads, we already offer to some factories our product to China. To a Fras-le distributor is present in all provinces. We have a plan of growth that will be a more robust growth for the next few years. We have our trading company that we started in 2019, where this facilitates the acquisition of products, consolidation of cargo and exports for all of our customers throughout the world. This shows that with Nakata, with Fremax, with Controil, we can do a purchasing sales operation to avoid domestic taxes. As it was mentioned in June, we started our first plan for energy, solar energy, where the roof in our operations 10,000 square meters, generating 20% of the capacity for that operation, and having a discount in our electricity bill on behalf of the Chinese government. In that country, there's a lot of subsidies to generate green energy, and we're using this. Our newest operation, when we talk about a commercial line, it's our ASK Fras-le. I don't need to tell you that the Indian market is huge. Not as huge as the Chinese market, but we're talking $200 million, a market of $200 million in these last years. This operation started in 2019. We are growing at a fast pace in terms of revenue. We just closed this year our first sale to Tata, the biggest manufacturer in India. If we are in Tata, we are going to second and third testing our product, or we will be approved this year. This gave us a revenue of $13.4 million. This year, we're going to grow over 10% in this operation. 12% of the business is factory, and 48% domestic market. I must remind you that by 2019, even Fras-le selling to over 125 countries, we didn't sell any spare parts to the Indian market with the amount of barriers to enter that market. This year in India, our revenue just for their domestic market, we should do more than $10 million. A new revenue that was untouched until now. We're talking about 350 employees and 330 SKUs, producing only lining and brake pads, brake lining and brake pads. When we look at our opportunities, we can't separate strategies only Brazil, only Asia. We have to look at the whole. I joke with my team because I say we play the World Cup. We struggle with the Chinese, we struggle with the Indians, with the Turks, with the Europeans, with the Americans. Our product must be competitive all over the world. We closed 2021, $950 million. We've surpassed $1 billion in revenue this year. For next year, we have an expectation of higher growth, seeing that our operations, especially in Brazil, have their capacity. As at full capacity, we have space in China, in India, in Uruguay to grow revenue. Strategies, looking at each one of our markets, and we divide this in markets. The one in blue here are the Americas, where our strategy is to defend this market. The growth in the American market will happen when we talk about a change in technology. The drum brake to the disc brake change. We're gonna give you more details. We have a strong penetration potential in some places where we don't sell yet. We have a growth opportunity in the rail, railway market, not only Brazil, especially in the U.S. market. Besides other international markets, in India, strong growth, robust growth in OEM and in spare parts. Seeing this is a $200 million market, as I mentioned, we're gonna close $10 million this year, so there's a lot of growth potential. What's the strategy in India? We must have competitive pricing, as I said, to fight with the Indian, with the Chinese, and to penetrate in the African market right next to India, in the Middle East market right next to India, we must be competitive. That's why we have the strategy of having a factory in India. India is growing. It's the sixth biggest economy in the world. They're gonna grow over 30% in commercial vehicles in this year. In China and Asia Pacific, growth in domestic market is a market. If we look at China plus South Asia, and Oceania, it's a huge market with huge opportunities in the Asian market. As I mentioned, diversification in our portfolio with our trading company, we can purchase disc, shock absorber, cylinders, pads, and send to, in a container to a final destination anywhere in the world. We have M&A opportunities that Anderson is gonna mention later. Okay, on my behalf, that's it. Jessica. Thank you. Now we have a small discussion with the main executives. They're gonna answer some of the questions and detail some of the subjects. I invite to the stage Hemerson, Eduardo, Guilherme, and Marcelo Tonon. Thank you. I will start asking a question. Everybody must be curious to know, Hemerson said and Tonon talked about the Fremax capacity. We're at capacity over 50%, but nobody gave us an answer what we're doing as a company to solve this, quote-unquote, issue. It's great to sell, but when we don't have capacity or the demand is above capacity, this ends up being an issue. Hemerson, if you can clarify this topic. Thank you, Jessica. Capacity at Fremax is a problem since we purchased them in 2018. The company had at that time something like 3 million in terms of annual capacity in parts. We invested a lot there. We did two times the friction line, created assembly lines. We invested in machining. If we compare to the same, we have around 5 million parts, but a disc brake can have 6 kg, 12 kg. Depending on the size and the portfolio of the sale, we're gonna have 4.8 million, 5 million parts. We've gone over 1 million parts since we purchased them, and we are operating to do this 1 million more parts. We use generators with diesel. When we did the business case, it seemed wonderful because we could sell more, but the price of the diesel at the time was BRL 3. Now it increased a lot and we have this impact in cost. Even so, Fremax is very competitive. We can have a production price and access to the market. We have a premium product, very well-made, very well-received, which brings a few challenges because we have a few ways to grow. The first one is to seek a base of suppliers that could give us a route to do the machining ourselves, the product with manufacturing, which would restrict the price that we could access this material in the market because we're very competitive at Fremax. We're looking at this way, using international production base. We've checked into this. The second opportunity is we have a project design to put a substation to substitute the diesel energy for normal electricity because we're limited in terms of electricity in Joinville. With this station, we can grow another 1 million parts. We're looking into this, and we're very close to be able to convert this license, to be able to build a substation. This is a 12-month project. Another way out, we're looking at M&As, possibility of growing through acquisition, be it competitors or factories that can be converted. We didn't have success in the approach we have had. At least two or three years, the management has looked into this. We almost designed a future strategy, a green field. Because with everything that we have today, we have a process to manufacture discs at Fremax that's well, very well-designed. Maybe we're the only ones in the world that we do things the way we do. To have an idea, we use in the metallurgy, even for every 1 kilo of iron that we melt, 90%-91% becomes a part. It's a global benchmark. A normal process that uses other processes different from ours, this is 60%, 70%, 65%. We're very efficient. We use electric energies for this, and we have very clear the balance of use of resources. We have very little waste. We wanna replicate what works in a new plant, and this is a 3-year project. We have many ways, many directions. We didn't decide for one, but soon we're gonna have higher capacity and produce Fremax products where we are. I hope I answered. It's not. It's simple, it's not easy, but we're working nonstop to be able to do this as quick as possible. Thank you, Hemerson. Still talking about capacity, I will link this and ask Manenti. You talked a little bit about taking capacity in Caxias factory. Recently, we talked in a recent release with investors to talk about a shift, the six-by-two shift. Can you mention this shift? What were the gains when we implemented this shift, and what's the expectation? Well, first, let's talk about our moments, why our capacity is at limit. Not overnight, but the volumes came all of a sudden. When China stopped and the world stopped, especially with taxing of imported products by the Americans from China, there's a high demand that came to Fras-le. Looking at Fras-le Brazil, we absorbed this demand. We gained new projects. We only gained these new projects because we had the capacity in other factories. Today, our global footprint allows us to transfer orders that we would produce in Brazil to Uruguay, like we did to India, to China. This move in the beginning of the year allowed us to gain new orders, new markets, especially the North American market, where we closed important deals. Two deals that when we add them up, it's over $10 million. We saw that the factory in Brazil could deliver more. Together with the team, the legal team, the union, together with the union, the workers' union, we approved a special shift that we call six by two that allows us to work on Saturdays and Sundays, increasing the capacity in Caxias do Sul in over 10% without investing more, just hiring more people and making the operation run 24/7. Today, with this new shift that was approved two months ago, today we are ramping it up. Next month, we are going to deliver an installed capacity 10% higher than what we had previously. I remind you that we have idle capacity in China in two shifts, in India in two shifts, and some in Uruguay. Today, our capacity problem, when we're talking about brake linings, is solved. Perfect. Thank you, Eduardo. I think it's very clear. Now, I will ask a question to Tonon related to the supply chain. In the last years, we lived chaos in the global supply chain, and we are seeing many companies revealing their supply chains being less exposed, especially to Asia, and I wanted to understand how Nakata sees that and if you're following that trend. One moment, in this moment when this discussion starts, there are lots of people that are hurt. It's still painful because we had COVID, we had lockdown, we had sea freight reaching unimaginable levels. There were ships who were lacking containers, people. We need to move away from this a little bit and look from a perspective that is more. We need to see the next day and understand it. First of all, Nakata has this business model for 20 years, and during these 20 years, we developed more than 100 suppliers. We have today more than 100 suppliers in our portfolio, and most of them are in Asia. For no product category, we have just one supplier, and for no product category, we have just one active suppliers. There are some categories that we have up to five suppliers active. All that happened, and it's true, but. Our suppliers, more than suppliers, they are business partners that see in Nakata an opportunity to place products here in the country, and especially they need our specifications, they need our know-how of product development and processes to be able to place products that meet the quality requirements of our market. We have a chain of partners that is extremely reliable, that made a lot of effort during the pandemic and the lockdown and COVID to keep us supplied. In addition, since we are a large shipper, we have partnerships and with the freight companies. For us, this complexity shows that we need to do some localization and change some geographies that like, just like we are doing for shock absorbers. We're already increasing the nationalization of this product, which is today unviable due to the transportation costs to export. For other categories, we are very comfortable because in the first of all, China and India or Asia, they produce more than 80% of the global consumption of IM. If we look at our numbers in suspension and steering, we grew almost 10% compared to the same period last year. Shock absorbers, 10%, transmission parts, 18%. We got all the containers that we needed and all the ships that we needed. I believe that this relationship with the chain, we need to adjust all the time. We already have very good people, and this is allowing us to serve our customers well. To conclude, since Guilherme said that in Argentina everything is all right and so there are no problems, I would like to address this better. We have this important exposure in Argentina, and I wanted you to talk a little bit about the challenges to operate there in the current economic scenario and what are the risks for our operation. Thank you, Jessica. We are not here to paint a scenario better than it is. They have 70% inflation. The population is getting poorer every year. More than 40% of people living under the poverty line. The exchange rate devaluation is very strong, so it's a complex scenario. I start saying that we have opportunities because the people who are there, this is not the first time they are going through it. It's. They're already in the third or fourth cycle of hardship. Maybe this is new for us, but Fras-le also operates in Argentina for more than 30 years. Even before this process of acquisition, we were already there, and we were living this universe, and this management staff that are there, they have this history. This is some safety for us because the management there is done daily, and I've been visiting the country often. It's important to know that we have there people who are navigating this sea that is new for us, but not for them. Every day something is new and a new story. We're putting several things into place, and I can say that our scenario is more positive than the global scenario when we compare with other industries. We are very present there in several movements in the local industry. Comparing us with our peers, we are in a better position. We did not stop any client, and our default from clients is zero. We have been able to match our payment deadlines, so we have zero default. As you know, Argentina has put into place some rules for imports and payments to foreign markets. We suffered more in July when the rule was implemented, but from August, we were able to make it right, so this allows the flow from suppliers to work. We have a solid base of suppliers, so they know if we need to pay in 180 days, they have this history of being part of a group that will honor its commitments. Everything is working well. So that we don't lose value of the money that we generate there, we are investing in inventory. Our inventory is healthy, it's well-positioned, and what is not in inventory, we use some financial instruments to protect our margin until things get better. My time is up, so I can answer your questions later. Thank you, Guilherme. Now, I would like to thank the executives for your answers. You can please take your seats. 1.65 millimeter trimmertråd. 1.65 millimeter, det är det vi ska ha. Bra att passa på nu när det är så fint väder. Nästan till kassa två. En komma... Nästan till kassa två. Vänta nu ska vi se. 1.65. Oj. Det var nära ögat. Tappa nästan tråden. Hej, Tony Rickardsson här. Vill du veta hur mycket din bil är värd? Gå in på viköperdibil.se. Ange bara biluppgifterna så får du snabbt ditt försäljningspris. Sedan säljer du på en sån här. Vi köper din bilstation. Mitt tips, ta reda på ditt pris direkt på viköperdibil.se. At the end of the presentations, all the executives will be available to answer your questions. Now we will start the panel on innovation. It's pioneering and innovation. Now I call to the stage Cesar Augusto Ferreira. Thank you, Jessica. Good afternoon. Good afternoon to those who are watching us online. Well, we understood and congratulations, everyone. I hadn't seen the content of the business people. It's very motivating and interesting to see the growth of Fras-le. We make this movement moment with you every year. With the pandemic, we became further apart, but we try to keep this connection with everyone. It's very nice to see that the business has only grown. What I want here is to bring the view of what supports this group to develop their business. I'll tell a little bit of what we are doing in manufacturing and in you looking at more advanced technologies. Maybe some of you have heard of this in the other events. I was very focused on product, but this time I'll bring more the view of how we are thinking to address our manufacturing and improve the productivity. I brought this chart to show all the fronts that we have. Those are the units that we have in this group that are under my umbrella. We have an Institute of Science and Technology, IHR, that supports Casaril's group. He's going to talk later for the development of new solutions. NOBI came, NIONE came from here, Smart Composites and Casaril will then, with Guilherme, they are transforming this business. Sergio Mendes and NIONE and nanotechnology and how this is progressing. We have interesting things to tell and I will talk more about our other initiatives, RTS and Auttom, that are two units that we take care to strengthen the processes of manufacturing of the Fras-le group and the other companies that we support. I cannot forget CTR, which is a laboratory to develop their products. I will start to talk about advanced technology or process. Fras-le, just like other companies, we understand that taking care of its process and looking for differentiation is one of the leverages of the growth of our business. We know that competition is higher and higher. We are entering more competitive markets. If the solutions for products are efficient and attractive, if you are not supported by a good manufacturing solution, maybe we won't be able to use this or maybe we will lose because if we only buy machines and don't make this accessible, we can be eaten by our competitors. We defined this. This is already defined for a few years. It gained more highlights since 2019, but what we call verticals, the fronts that we are working on to improve and invest, put more energy on to have our manufacturing more aligned and prepared for this promising future that was presented here for our business colleagues. Sergio mentioned, and I will highlight, we believe that we must study and bring solutions for machines and special solutions when we talk about smart materials and niobium. It's not only the product, it's the way that we produce and the means that we're going to do it to ensure that we have the chain and the efficiency to deliver the solution to the market. Of course, we cannot talk about advanced manufacturing if we don't talk about automation. We are being provoked and we are proposing several projects of industrial automation. Fras-le has increased the number of robots in its factories strongly in the last years, and I'll bring some numbers to show you this. It's to bring this profitability and better use of our assets and to keep us more or always attractive as a business. If you are here with us, you visited our facilities of shock absorbers of Nakata, it was already conceived to not have forklifts. We know that this is a problem. There's break of flow, accidents. Thinking about solutions to change the handling in companies is one of the things that we defend, and we cannot abandon other concepts like smart factories, which is also called Industry 4.0. We prefer to call it smart manufacturing. We want to give more visibility, collect more data, seek efficiency, and improve the way that we produce our products. Bringing some numbers here. In the last three or four years, Fras-le invested BRL 21 million in this type of technology, talking about manufacturing. As I said, 88% of growth of automated cells. We can see a strong investment to transform our factories, making it more and more modern, investment in training and qualification. I have 45 belts trained in all levels. BRL 3.4 million in gains, or we can call reductions, or gains in efficiency in labor force, and this reflects in productivity gains of 27%. Those are numbers, significant number in a short time. This shows that there's a lot of M&A, there is a lot of growth, but we are also looking to our structure. We are 60-something years. We are close to 70, but we are looking also to modernizing our factories, and those are the numbers that represent what is being done. Now, talking more about products supported by IHR and CTR and providing the support that the team and Casario need to continue evolving in products. I always bring the same slide. If you know me, you'll say, "Well, I am tired of seeing you talk about this," but we've been talking about this for a while, and it's becoming closer and closer, and it's becoming a reality. I came back yesterday. I arrived at 5:00 A.M. from Europe. I was at IAA. Lots of our colleagues were there as well. We are seeing solutions aligned to this coming in the next year. Talking about electrification, some assemblers, there were like one or two that were not electrified. This is what they are showing. We know where this comes from, self-driving solutions. This vehicle here is already being sold or in presale, is still being leveraged. It's already running in some distribution centers in Germany. This, we've been showing for a while. Of course, use of materials, all these technologies, especially batteries, its strong weight is efficiency in the automotive chain, both for cargo but also leisure. You're spanning energy to transfer weight. It's mandatory. We're seeing this more and more present, and we are seeking for it, and we're bringing these leverages to our businesses. I won't get into more detail, but this slide is five years old. I always bring it. Everything here you know already, and we defined clearly the strategy that we wanted to design and where we were going to operate. We've been working stronger in this, focusing on smart materials. This is the main thing that Fras-le is raising. As I said, weight reduction, seeking sustainable solutions, using different designs, more intelligent designs. This is our advantage. I used to say it's not just replacing the material, but it's rethinking the concept. Casario's team does that very well. We started in IHR. We brought all this knowledge, and today, Casario will bring several new actions and solutions that are being used for this concept of material. There is more and more people interested in this, seeking performance and seeking improvement. I brought this chart because I think it represents us when we talk about innovation. This curve is not, I didn't do it, but the path of everything new follows this curve. There's the pioneer, the first adoption. Then it starts to see economic feasibility, starts to grow. When this is confirmed, there's scalability, and it grows a lot. We were a bit lucky because we defined a strategy that is so well-aligned that we can already be doing these first two steps as the early adopters and maybe this leverage growth exactly because this was the point that we embraced. All the solutions in smart materials that are being thought about, they have as a premise to be economically viable. They bring the ESG and weight reduction. If they don't have economic viability, we don't consider them potential business. This curve gives us this view that massification and scalability of the solution will happen quicker than we expected. Yeah, I know my time is up, but I will use two more minutes. You continue to be my friend. It doesn't stop there because we have other ambitions. We have a well-defined roadmap to leverage these technologies and support the teams of Fras-le in the growth of this business. We are convinced if you were there, we'll see this use of this material more and more aiming at efficiency and weight reduction, and it also will have an ESG result. I can't leave here without talking more about NIONE. I know my time is up, but I need to talk about this. Niobium, NIONE, we were fortunate. During the research that we did looking for solutions and materials, we found a way to obtain the nanoparticle of niobium pentoxide in a scalable way, so we are able to produce with a good economic viability. We patent this in the world, and we are exploring this technology with several partners. Here, just to give you some numbers, the title is not correct, but niobium market, essentially micro niobium, is around 110,000 tons. Just to give you a reference of quantity in the size of the market in the world. This market is divided more or less this way. In other words, there's a lot of use in steel, automotive, metal, ores, 93 material, and 7% others. We're looking into the others. High concentration is China, Asia, and India. The rest is the rest. More or less we know where the high hubs of consumption of this technology is and where we're attacking. Here I show in a very broad way but a very clear way what are the potential business niches where we can attack. To be honest with you, all of these fronts, we have projects tied to them. Of course, everything is linked to this potential that we identified of this element, of this particle. So we're talking about solutions linked to energy, linked to, devices, metallurgy, resins, so forth. All of these projects, all of these benefits that we were able to identify with this raw material, we're exploring in different projects. To give more capillarity, like Cesar said, I can't tell you everything, but I'll try to tell you a little bit. All these projects represent initiatives related to those fronts, some with a higher level of maturity than others. This is a live chart. These dots, they move, and we're trying to bring them to that zone identified in red because this is where we understand that we transform the solutions into real business. For this, there is investment. We have a base, research base that will leverage the business growth, but this is perfectly aligned to our roadmap, the way that we designed the unit's growth. It's evolving a lot in the direction we want. This is the most important message I can give you, and soon we'll tell you more of what's going on. After going over time, I will say goodbye. Reminding you, we have the CTR, a great tool to develop solutions, especially for automotive. Not only reminding you that Eduardo tried to win me, he put after 10,000 square meters of solar panels. In China, we're gonna do 15,000 meters. We're gonna see who has the highest green energy solution. Jokes aside, yes, we should have a CTR with an important step for the group's energy transformation. I'm sorry, but I went over time. Bye-bye. Thank you, Cesar. To continue this panel, I will invite the director, Alexandre Casaril, to continue with the presentations. Thank you, Jessica. Good afternoon. I won't introduce myself because they've mentioned my name. I had around 150 people dedicated to bring innovation and to foster the business with innovation in the Fras-le Group specifically. Different from Cesar that is more connected to the fronts of mega trends of disruption, here my message to you is how we transform research, development, innovation in business, in turnover, revenue, market share. Starting with the first message that I wanna leave with you, our expertise, the backbone of our technology is material engineering. It's in this, it's through it that we generate competitive differential. This is a reality today, but it's in our culture. This is historic in Fras-le. I bring to you some milestones that are in our history, in our journey. For example, when this discussion was starting, Fras-le started to invest in a technology, a platform without amianto as innovation. Without asbestos, sorry, and the ability to gain traction with the car manufacturers that were following Europe, so that 10, 15 years later in the beginning of the years 2000 when the opportunity was there for the US market with our partner to have a great position that was mentioned by Eduardo and Sergio also. This belief in innovation and the vision of future trends is what allows us, and allowed us to have a good position in the US market. The same way in the beginning of the year 2000 when before ISO 14001 being a reality and the ESG agenda being a reality, we already invested an effort for the development and the reuse, recycling of the waste in our processes. Many years for us, it doesn't have a landfill. We've turned a problem in our manufacturing process a competitive advantage. The same way, in the beginning of the year 2000, this is very interesting case because I was participating in this R&D case. In the beginning of the year 2000, we bet on a platform for brake lining, for compatibility of a drum. It's a technical specificity that in around the year 2010 we were able to have the capacity to give an overlife of the American market lining that now 10, 15 years later we see that it turn into the brake disc brakes and a new technology allowed us to have a different technology and where we were strong and our partner was strong, this is what gives us the market share that was mentioned. Coming to the current days, in 2014 when 2 US states started to restrict the use of copper in friction materials, and I will get a bit technical here, but I dare to say that copper is the backbone of commercial brake pads, and this is how it has been in the last decades, culminated in an agenda that in 2025 wants to eliminate, and this is gradual, this material. We bet in a final solution. In 2016, 2017, we bet in a solution. Instead of the intermediary, we went straight away to this development, and this has allowed us to dare in the front of a development of disc brakes that I'm gonna share with you soon. Bringing to the most important research project that we have in Fras-le that was mentioned, NOBI, an idea that started in Fras-le engineering. Many of our engineers, they're not traditional engineers in terms of design. They're connected to research, and that's why they're masters and doctors, and that's how they're trained, because they have strong innovation. NOBI is our umbrella, research umbrella, maybe the most important project with which we want and we bet in the generation of competitive differentials to generate new product technologies, new materials, bringing competitiveness to this, but also allowing, enabling opportunities in terms of process. With materials, we create a competitive difference, and we think and we want to create competitive differences that are own, singular to Fras-le. Not only use what's the best in the market as process technology, but create specific processes that are hard to replicate and give us a competitive edge against our competitors. This is nothing new to Fras-le. It shows our potential, our revenue, BRL 65 million in commercial line. In Caxias do Sul, one of the most productive processes that started with designing in 1990 and has been perfected since then. A very productive, automated process that's very competitive. The same way, Fremax, it was mentioned, Emerson mentioned, I don't want to be repetitive, but the way that Fremax designed their productive process, it was designed specifically for disc brakes. That's why it's designed, and this is where it brings competitiveness. Hemerson mentioned also, we don't have in other companies that we know, and we've looked into this, trying to increase our capacity, looking at other opportunities. The other companies don't have the metal yield that we have. Nakata has a difference in their process in the shock absorbers that's traditionally done with solder, and we do a different process. Different manufacturing process is in Fras-le DNA, in our idea of competitiveness. Enabled by NOBI, we have different fronts, development fronts. This was a case that we had last year that was mentioned also. We were able to bring the NOBI technology for railroad, lowering the time, increasing productivity of the same asset threefold, lowering the cost and the product in 30%. This is how we will go forward. We have opportunities, and we have development fronts in several product lines. Now I want to show you two cases of the different development fronts that we have, ADB or pneumatic disc brakes. As Eduardo mentions, this is where we have the big opportunities for commercial vehicles. It's a market segment that we know very well. We're very strong in brake lining. We know this market. We understand the technological axis of the decision-makers, basically Europe, headed by Europe, but also strong in China and the US. Here is where we dare to explore and seek new business fronts due to several factors and competencies that we have, market factors and our competencies. First is the copper-free legislation. This legislation of copper, the ADB technology run for these disc pads is seen as an opportunity. Fras-le globally, at least in the Western world, is one of the few companies that has the technical resources to support a development wave like the one demanded by copper-free legislation. It started in two U.S. states, but it was assimilated by the North American market and assimilated by other markets in this north axis. We have, according to this, the composition Fremax, and I mentioned Fremax. We have how to verticalize components. A disc brake is done by the friction manufacturer, but we have other metallic components. A verticalization is relevant for our competitiveness. The same way, the capacity to invest and innovate in the manufacturing process, that bring the variable cost competitiveness, as Sergio mentioned, and also our reputation. We are very much recognized, especially in the Americas and the U.S., by the Fras-le case of market leadership. AM and OEM in the US is recognized by the US market, recognized by the players, by our potential customers, and we are well-known in Europe and China. Pneumatic disc brakes is a big opportunity front to. I cannot forget to mention Smart Composites. This is another business connected to the megatrends in automotive industry. We believe in this. Composite materials is the part of the future of automotive industry. That's why we are investing. This connection between IHR allowing technologies, IHR, technologies and processes for Fras-le that expands this as a business. We had a first case here of Randon, as Sérgio, César mentioned, a technology that was enabled with a business case, with application in Randon Implementos. This is a strength that we tell. To be in Randon Group is a strength. Randon's equipment track traction system allows us to look into new trends in the market. With this, we are expanding. I brought here three examples of projects that we are developing with car makers, three of many in the pipeline. We are also building this expertise in composite materials that is unique in Brazil, without a doubt. There's not a lot of competition. The ones that we can attack, that we can develop competencies in terms of design, simulation, manufacturing with the laboratories infrastructure, test field, and with test track and competencies of resources, which is our people. Here, I finish, Jessica, and I give you back the floor. I'm available for questions. Thank you. Now we are gonna organize briefly the stage to receive the debate about this panel that will be mediated by Hemerson de Souza. I will invite Sergio, César, and Casadio to return to the stage. Well, first, it's not easy, 90% market share in spare parts. Casadio brought a path that what we did. When we talk about research development, we're thinking not only about what we have to do, but above all, what we can do different, and being able to explore in different markets in a more robust way in the future with new solutions. Here we have two important things. I will try to be brief in my approach. To César and Casadio. It's raining in Minas Gerais. Those that are listening from home will hear the rain. Yeah, it's good because we had a drought. Well, especially for you, Casadio, it's very good, your rescuing of the history, the evolution that we had as Fras-le that allowed us to have the leadership position today in different markets. I'd like to understand how much, Casadio, you in your vision as a leader in engineering at Fras-le, you said it well, you're responsible for giving support to create the connection of what is thought in the future to become a product, to become revenue, to become a result. How close we are of this legacy of technologies that involve this brake, that involves ADB, pads, NOBI. What's your feeling? The path that Fras-le has gone, has trailed, and how close we are to making this a revenue, especially in brakes, and you can talk about what we have in the pipeline in terms of Smart Composites. It's important to bring several comments that help to build a scenario that has to do with what you said. I showed this journey, the history, showing that innovation, development innovation is not something that we're gonna do in the future. It's part of our culture. It's one of our guiding stars. It's strategic. It's in our culture. It's rooted in our day-to-day. It's important to mention that after 2017, 2018, this grew. This vision of how innovation can leverage our business grew exponentially, the expectations, the actions, and the investments. This is important because in this moment we opened several fronts. NOBI started in 2017 as an idea, 2018 as a proof of concept, 2019 as R&D of a specific product, 2020 as validation. It's in the market already. Railway pads is something that was brought with many important dedicated indicators. Bringing an idea, especially if it's disruptive, from concept to the market, it's not simple, a simple process. It's a complex process. It's costly, and it demands a lot of consistency in the proposition. I'm gonna tell you that 2017 was not too long ago. We've seen some ideas becoming a product like NOBI and I1 also. I see many other ideas in the brake discs, brake linings, pads, motorcycles. I see this growing Fras-le in our research center and some already going to validation in the field, and we will have lots of new things in two or three years in terms of new products designed based on these new technologies and these new developments that we are doing or working on today. Thank you, Casadio. I wanted along those same line. I think it's important to validate with those who are listening to us. Both CTR and IHR are companies that Fras-le has as partnership 100%, right? Fras-le has 40% of CTR, and since CTR owns IHR, we have the same share. Actually, IHR uses a patent, and Fras-le receives royalties from the revenue of that company. This is one of the questions that comes to us in terms of support. People want to know what is the size of I1. Is it BRL 50 million, BRL 1 billion, BRL 100 million? We always try to bring the support that this size will only be based on the research. You brought here 17 projects, right? That are mature. Some are close to becoming revenue, and of course, this brings some curiosity. I wanted to ask you in the same line that I asked to Casadio, of those 17 projects, those 6, 7 that are becoming a product, what could be the potential of the market size or investment necessary to turn the key so that I1 can become a company that is well-representative in terms of revenue for Fras-le? Actually, we have an estimate based on the maturity and evolution of these projects that maybe I1 could help or generate something around half a billion reais in the next 5 years. This is our ambition, but this answer is still uncertain because the markets can be potentially much larger than that projection. I talked about this today. We have some birds in our hand and several flying. Those that are in our hand are close to us. We can see in a short period a very strong growth. Those numbers, they can change. We saw an evaluation by a market analyst on the potential market of this company. We are seeing several markets or clients that are interested in this technology. As Casadio said, everything that is new, especially in the automotive industry, and I will make an important comment here, friction is a safety element. You can't add a technology overnight for the market. There's some maturity time. We are in a very important path, and in this year we had a delay of three months in our revenue projection because I have smaller partners. We depend on the markets, but we are on a very important growth curve, and that is aligned with what we projected. Thank you. We know that NIONE is. People always ask about this, so I will now call a short break, five-minute break. If you are at home, you can take your time, have some coffee, and there's a small coffee break here, five minutes, and we'll come back with the commercial part, and we'll do a complete view of our operations panel then. Thank you. If you're watching us, we'll come back in five minutes. Thank you. Hello. We are continuing with our program of Fras-le Universe, and to continue with this event, to talk about the spare parts market, I will call the director of spare parts of Randon Companies and responsible for the Fras-le, the director, Paulo Gomes. Thank you, Jessica, and good afternoon, everyone. Good afternoon to those present here and to those who are watching online. It's a pleasure to be here with you. Let's talk about the market now. We talked about business, about operations. Now we'll talk about market, and I'll start, and then my colleague, Sergio Montagnoli, will continue in the markets panel. We are a global company, as we saw here, and one of the main businesses we are pioneering, internationalization, was Fras-le, present in more than 120 countries. It shows that we have a strong presence in the American continent. In the United States, Canada, Mexico, Latin America, the Brazilian market, we are very strong. If we look at the rest of the world on this graph, both Europe, Middle East, Africa, and Asia, we have a participation. We are present, but in a very, very low way. We have a lot to grow. Our potential market for growth and expansion is large. That's what we wanted to show. Of course, we are talking about market. We need to analyze our business. If we analyze month by month our market of vehicles, if we look at the growth curve, this only for commercial vehicles, it is growing stably, but always growing. In addition, the curve shows the mean age of the fleet, which is also growing. This for the spare business is very good because a used car needs more spare parts. If you look at the future, this plot here for trucks, buses, and trailers, it is a growing trend, 3%. It's for a mature, stable market, but it's still a significant market for us. If we look at the light vehicle market, we're also following the growth. It's always a stable growth, but always growing. It has never dropped, the light vehicle market in Brazil, and the trend is to grow even more. In the future, we see more this becoming more flat, but it will also grow. In the same way, the mean age of the fleet is growing, the mean age, and this leads to more demand for maintenance, which is our main business. Now, we always worked with the motorcycle business, but now we are looking closely this market because Fras-le has friction and works with friction for motorcycles for a long time. When we incorporated Nakata in our group, Nakata is much stronger in this, and they have a more wide offer of products, so this starts to become a relevant market for us. This is the fleet of motorcycles in Brazil, and it's also showing growth. What is our market and our business environment? We are a country with 210 million people. Now I'm focused on Brazil, looking at the domestic market. 210 million people. We have more than 45,000 retail stores, more than 7,000 distributors. We have a fleet larger than 45 million vehicles and more than 70,000 shops, workshops demanding parts. This market as a whole, statistics show that it transacts around BRL 130 billion per year in Brazil. It's a very large market. This is the market where we operate. This is our business, and how can we cover this? It was shown by the other directors of the business units that we have a broad portfolio. We were a friction company before, but now we are a company of solutions for the spare parts market, especially for the undercarriage, as we call it. We have friction discs, brakes, drums, fluids, lining, suspension. We have a portfolio that makes our spare parts powerhouses very attractive for these segments, and this is showing our relevance, our market, how we are in the main product segments. Sergio brought this term here of non-selective replacement. For linings, brake linings, we have 60%, for cars 40%, and we analyze several items if it's selective or not. The first replacement for new vehicles. Let's talk about brake linings. The first replacement, in general, is around 100,000 kilometers. The others happen every 60,000 kilometers, and in 5-year period, the tendency is that this will be replaced 8.2 times, and so on. Brake linings for cars, the first is with 80,000, the others at 60,000, and so on. We have this demand for our products that is very stable. This is what makes us attractive for this market. These product lines here, they represent approximately 70% of our business of spare parts in the Brazilian market. However, we are at a moment, a transition moment. I would say that transition has taken place already. Our business environment from the traditional business where we have, on the one hand, the factories and the merchants, distributors or retail, and the consumers, the workshops and the final, the end users. What's in between and what makes this market different? It's the digital world. The digital world, the social media, the search for quick information, the identification of the part must be very fast. We have social media, e-commerce, websites for marketplace, and many other tools that are interacting between the traditional model and the new digital model. What did we do? We prepared. We made several actions to serve this market and the digital world. Today, our catalog of products is 100% digital, because the print catalog is like reading yesterday's newspaper. It's out of date always. Having this print catalog doesn't work if you're launching new products, new vehicles. We have as a strategy for every new vehicle launched in the Brazilian market, in 30 days, we have the brake pads, the brake linings, and the shock absorbers available. We launched a catalog today from all the companies of the Fras-le group. You type your license plate, and it will identify all the parts that we have for that vehicle. All the parts manufactured by our group. We have constant communication with trainings, tips for the use of the product in this blog that has articles, videos, tips, technical talks. We have our official stores in Mercado Livre, which is the largest site for the sale of auto parts in the Brazilian market. They sell everything, but the parts business is relevant. They have millions of daily searches and thousands of sales per minute of parts. We have the official stores of Controil, of Fras-le, Nakata, and Fremax in Mercado Livre, where anyone can purchase from there, and our closest distributor will deliver. We have our portal of orders where the customer interacts. In three clicks, they can place an order in our portal, and it enters our SAP system to start the production. It's everything digital. With three clicks, we have analytics. We have all the data today. We don't circulate paper anymore. Everything is in our analytics, in our hands, be it on a smartphone, tablet, computer, 24-hour per day. Any place in the world, you can access data for the customers, profitability, consumption curve, sellouts. We have our social media with tips, interaction, and posts, weekly posts. The new product that we are launching to form and to better the commercial area is our CRM. We selected Salesforce, which has the best CRM in the world, and we started to operate it in January this year. What is the main focus here? In addition to the direct customers, we want to have better understanding and be closer to our indirect customers, which are workshops, retail, and fleets. What's the idea? Every visit of our people, we have 87 people in the commercial area. When they are on the field talking with customers, they are recording what's happening there. We are creating this database, and our commercial strategy starts to be designed based on the data obtained by our CRM. We are connected with the digital world. This is our digital transformation that we have in the auto parts business. That's what I had to say. I was brief. Now I want to call Sergio Montagnoli to talk about the market. Thank you, everyone. Good afternoon. It's a resilient market, as we saw, and it's under transformation. I could come here and start saying what brought us here is not what's going to take us forward, but that's not true. What we need is to understand where these transformations are happening, and we need to understand what we need to add to our business. When we look at that, we understand that these changes, they will come in the journey of repair and starting from the consumer. We need to start to see the distribution chain from the perspective of the consumer and the experiences that they have in the different interaction with our brands. You heard us talking about brands here. Why brands are important. Aren't you selling parts for cars and trucks? Yes, but we sell for this consumer that is going to do the repair. Different from buying a smartphone that you pay, you go there, and Paulo gave the example of Mercado Libre. You go there, you purchase, you receive, you pay, you open your box. Parts is not like that. You don't wake up in the morning and you say, "Well, I'm going to replace my shock absorber. I'm so happy." No, that's not how it works. The one who opens the wallet is not the person who opens the box. There's a decision cloud, and both needs to have their experiences well fulfilled so that they continue to buy the brand, and in our case, our brands. However, different from downloading a song or a movie, the part needs to leave from point A and reach point B, and from point B to point C. We had recently a company that entered the business of spare parts in the United States, saying that they were going to deliver parts in twenty-four hours anywhere in the United States. They were not successful. Do you know why? Parts are like pizza. You won't wait 24 hours with your car at the shop to change a braking pad. This part needs to be at the point of sale, the closest point of sale, so that, in fact, you can deliver this promise of 40 minutes, 50 minutes, 1 hour with the part available after quotation and concluding the quotation. What am I saying here that is different? It has always been like that. What has changed? We changed. I'm from a time when you turned on the computer, you went to have some coffee, chat with a friend. No one over here remembers this. Maybe David Randon remembers. You had to wait. It took some time. There was some emotion. You didn't know if it was going to turn on or not. Today, if you open an app and it takes too long, you change, you go to another one. We changed. Expectations have changed. That said, what we propose for this new cycle is a platform in an ecosystem that will meet all these elements, going through the right parts in the right place, having the knowledge of diagnosis and a budget in due time, competitive parts, knowledge of repair, and especially, it must fit the pocket of those who is paying, who is paying the bill. Now I thank you, and I will pass now to Anderson. Good afternoon. First of all, thank you, the state of Minas Gerais. Thank you for welcoming us, Nakata, now, and absorbing the other operations. The guys that are from Minas translating why in the south is Che, so we understand how to talk with the guys here. It's a privilege. I thank the board through Monica and David for being here, the directors of Fras-le, the investors, the analysts, and the ones that are watching us online remotely, digital platforms. I will try to be very brief because many of the elements that are here have been mentioned and approached. A few I want to highlight so we can have this in mind and understand Fras-le's journey up to now, but especially the journey going forward. My mission is to try to help in this context. We spoke a lot about the presence of Fras-le, and I'd like to show this slide without giving a lot of details. It illustrates a bit of our protection geopolitically in modern times, in times of war, in times of lockdown and COVID. It's very important and relevant not to put all your eggs in one basket. Fras-le can put many eggs in many baskets. This makes our business is geopolitically protected. This next cycle, we want to enhance even more this protection. We see this plot with 3.4% growth in our revenue, 24.3%. A part of it is dollar, but a lot of growth and expansion organically and non-organic in these numbers. Going to the next slide, we cannot forget to speak about Randon when we talk about Fras-le, our controlling group, extremely relevant so that the strength of Fras-le together with Randon bring a competitive advantage to the companies. We have different focus. Yes, Randon is more in the cargo and truck implement maker industry, more in the domestic market. Many know that Randon has ambitions talked about in foreign market, and they have important solutions for transportation market, more for the heavy line. Fras-le is a bit different. They have a strong leadership in spare parts in Latin America, mentioned by Sergio, top three, at least a big international relevance for decades, Fras-le. To have an idea, European market, Fras-le is four decades export. We're 68 years old. 40 years we are in Europe, a very mature market. Coming from there last week, I was talking with a client, a customer, the longest customer from that. We have a powerhouse of spare parts with recognized brands, desired brands. With this, we have a combination of businesses that add up, and the synergies are well perceived. The reputation of the brands, they one-up one another. The track record for Randon and Fras-le in terms of historic results are the most favorable ones possible. Fras-le doesn't have one quarter in their history with a negative result. The power of the supply chain is. It's a pleasure to be part of Fras-le and Randon as a controlling group that has the supply chain that Fras-le has. They're shared, yes, our back office, the transaction part, the non-core part, but they're very important to sustain business, this is done in a shared way. Optimization of financing, we have the best access to funding when we participate in a pool of companies that is more relevant. The collaboration and technology, I don't need to mention. César has mentioned this broadly. Casario absorbs and drinks from the source and helps us to transform into business inside the company. We also have an ecosystem of open innovation through Randon Ventures, through Conexo, through the service area. We also benefit from this. We are here with the investors, with CVM, with governance and policies solid, and we help each other, and we add to one another being. Pay attention to what happens in the capital market. This is a bit of a history. Fras-le begins in 1954. Many of you have knowledge of this, but from 2017 onwards, we accelerated a lot. I want to show you the amount of new logos that you see here, and revenue increased in the correct direction, and we became international. We acquired complementary product lines in 2021. We strengthened our position with innovation. That, without a doubt, will bring a lot of benefits in the future. What comes after 2022, I'm gonna tell you in detail in the next slide. We can't forget to mention that our strategy has been successful. Having lunch with Lucas, I said I was gonna say this. He, an analyst—as an analyst, saw that our maturity to qualify and quantify the M&As when they happened was exponentially noticed by the market. At every acquisition, every incorporation, every expansion, we did it quicker and stronger, we captured results. This is maturation. This is a track record that allows us and makes us have the confidence that we can repeat this in future cycles. César mentioned team is everything. We have a team of executives. I hope that everybody has the same perception that I had when I saw the colleagues here. We have a team that's ready to bring the company forward. It's not a team that's ready to maintain the company as is, but a team that can bring the company beyond, take it beyond where it is. I'm gonna tell you about two important examples before I tell you about the future, which is Fremax. To give you numbers, we acquired this company when it had the revenue of BRL 170 million. It should perform near BRL 400 million this year, maybe more, maybe less. The year is not over yet. We doubled it in size in a very short period of time. We have it since 2018, the end of 2018, so a little bit over three years, and we have grown twice in size. We have done several synergies. Sales at the time, we had those sales representatives, and buyer has this now, Montagnoli, purchasing, procurement, the shared distribution. In numbers, we captured over BRL 60 million synergies in a horizon of five years in this operation. Here in the bottom, the text is available for you. The event is recorded, and this has been repeated by all my colleagues. The premium position of Fremax, I like to highlight this. It, as friction and disks, usually, these are the first items to be changed in a vehicle based on Paulo's slide. When you have a new vehicle, you put a premium part, you take care of your vehicle. Positioning Fras-le and Fremax as a premium brand, the first maintenance change in your product is very smart because we pay a premium, usually because it's a new vehicle. I want to keep as close to its original condition as possible. Talking about Nakata specifically, I have two slides. Nakata, when it was purchased, they get a revenue of BRL 510 million. It's now at around BRL 770 million. It's a little bit more. Maybe let's wait for the end of the year. We're talking about a meaningful number. Nakata is with us for two years, and we have a lot of synergies, and we're talking about BRL 100 million synergies mapped out. Not all have been captured because the projects are ongoing. Many of the numbers for the past in the company bring a bit of this synergy, but some are to come in future numbers as soon as they're implemented. We are in this moment in Nakata, our shock absorber factory that many of you had the opportunity to know today, as well as distribution. We concluded between March and April, we finished 100% of the transfer of the Diadema unit to São Paulo. When I talk about March and April, it's when we are at cruise control speed. We removed all extra production costs as we had projected, and better, we are better than the original plan in terms of productivity. In this shock absorber factory, the construction happened in 8 months, and we already brought many concepts, manufacturing concepts, smarter, as Cesar mentioned, cleaner visually, logics, logic flows, minimum risk, no movement, no equipment has movement inside. We're ready to grow 2.5 capacity than we had in Diadema. We have a declared project to get to 400,000 shock absorbers in the market in the future. We're performing around 250, 260 currently. The distribution center is not just Nakata, as it was mentioned. It's already Fras-le, Controil, and soon Fremax. From here, we will service Sudeste and above, Southeast, and other regions will be supplied by the units in the south. We have a more optimized situation for the customer, better delivery window, better consolidation of freight, reducing the frequency of deliveries to the customer, and this brings financial advantages and an advantage in terms of experience for the customer that's very meaningful. Before, we had four trucks, now one to arrive. This is efficiency in the end. That's very relevant for those that receive the merchandise. Fras-le changed a lot in the last few years. The spare parts market has been strengthened. We are a complete solution today. We have opportunities to enhance the portfolio, but I usually say that inside, from the steering to the wheel, we can improve attractivity and offers. The steering system all the way to the wheel, we're not talking only about tire and wheel, but everything that's in between will make sense for us to enhance. Geographies have been reached. The product portfolio is wide, is broad. We have a complete solution. We're relevant, as César mentioned, for our customers. We've fine-tuned what was not working well. We had the courage to face issues, change the production from one side to the other, optimize closing some operations, investing, stop investing where we had to stop invest, so the results could be enhanced. We invested in productivity. Once we invest in productivity, we stop having the capacity because we become more competitive. The market starts pulling us. We have a lot of steps to take in terms of capacity, and the option to outsource production, especially Nakata, gives us speed. When the market pulls a lot, when the market brings a need that's faster than what we can have increased capacity, the fact that we have the possibility to fluctuate demand with an outsource always keeps our factory linear, full production, and as a consequence, the result is stable also. Three pillars for the next expansion cycle, talking about the future here. We want to continue consolidating our leadership in Brazil. We won't give up, be it through acquisition, be it increase in capacity, be it brand positioning, premium price with the brands that don't position themselves, be it on the time to market. We want to be pioneer to launch parts to the aftermarket in all lines of products. We still have gaps, a few, but they exist. Because we capture premium, the quicker in the market defines the price, he surfs the wave of the premium price for longer than the ones that enter later. We have as a goal with the team to be number one always. There's a new vehicle that has been launched in the Brazilian market. We want to have the part as quick as possible and to have the complete solution, one-stop shop for our customers. The other relevant vertical explored by César and Casadio is innovation and technology. The part of automation, as well as disruptive innovation in manufacturing process is very interesting to us. Smart Composites, nanoparticles. These two items can be a boost in the creation of future value for the company in our vision because it offsets the big trends that are out there, very much aligned to electrification, to autonomous vehicle. This can bring and unlock a lot of value for the company, and the capacity of development increases visibility with worldwide OEMs. I included this slide because Casario, four years ago, our engineering was in Caxias. Today, our engineering is in the world. Today, our application manager sits down in Germany. He controls all the applications worldwide because the time zone is very favorable to work with Asia and the Americas. We are becoming global, becoming closer to the decision-makers to be able to capture innovation and technology here. International expansion. We want to do the rollout of the powerhouse that we have in Brazil and Argentina. We have geographies at, like Colombia and Mexico. To talk about the same business model, maybe other geographies that are less relevant also, but we want to broaden our exposure to mature markets also, and we cannot forget to mention Europe, NAFTA, and Asia. NAFTA is not the terminology being used so much, but North America. Asia is a bit distant due to COVID, especially in China, so we're going to scale quicker in the other two geographies first before we advance in Asia. The global R&D, as I mentioned, so we can have this operation, international operation, international expansion, make it happen. The first cycle has been concluded. 2016 was the capital moment. We acquired Nakata. We went to the market. I'm gonna tell you about the follow-on later. We had very adequate choices, secured safe choices. As time went by, we were sure that our partnerships were well. The more robust we became as a company, as a team, it's easier, more intense are the relationship between the Fras-le units to use the synergies that are to come. When we talk about the second cycle, mature market, and global expansion, we want to have the 50, 56, 60% in the international market. We want to use part of the resources of our time to unlock the capacities that have sure sale in potential markets that are very high. As well as we want to focus and continue to exist in a constant way with the technologies that will make us unlock value and create a more robust Fras-le in the future, the smart materials technologies, nanoparticles, and non-organic binders. Here, I wanna thank the market and the controlling group. We were very brave. In the middle of a war, we closed in follow-on. We were about to close a market window. The war happened, and we were able to conclude this with a sacrifice, with an effort by Hemerson's team, Hemerson's team especially. The money is in-house, and what I like to say is the pipeline of projects is getting thicker and in the correct moment as we mature the ideas we bring to the knowledge of everyone. What we are looking more closely, in more detail, without of course discarding other opportunities because M&A can be opportunistic, but those are the markets that we pay more attention. We are looking at some possibilities in Brazil, but we have invested more time in Europe, Mexico, and Asia. As I said, it's a little bit distant, but some conversations are starting to happen where we intend to maintain. We want to expand the product lines, yes, but we don't want to move away from our core, which is from the steering system to the wheel, everything that is complementary and allows synergies to be captured interests us. All the support to distribution or access to market also interests us. Brands with good reputation, geographies that we don't access, but they have a brand that give you access to it, be it single product or multi-product, depends on the situation, could also make sense because then you can optimize your footprint, optimize your product offer, and start to bring to these geographies as well. Also, the incorporation of supply chain. Sometimes vertical-verticalization is important. At times it is not. Incorporation is not only the acquisition of a partner, but it's also as you have access to markets, you can expand your bargaining power with a current partner. Synergies can come from several fronts, but this is just to give you some idea to what we're looking at, and I'm certain that many questions will come along those lines after my presentation. The challenges for expansion in M&A, we are seeking for complementary products, cultural barrier in the acquisitions abroad. It's always more challenging to seek acquisitions abroad, but we have a very international team in Fras-le, people who have already had this experience, and they know how to manage business, international business. Capacity is one of our verticals for expansion. We have a line in Brazil and abroad. We need investments, disc brake discs. We have talked about this. We have two very important processes of automation that are underway. Our light line for some time, it has demanded new incremental automations, and we should invest strongly in this. The innovation part we have mentioned. Paulo was very happy to say this. We need to increase the commercial automation with a data-driven team. The way to sell has changed. The way to capture value isn't on the detail. It's on the decimal place. Selling hot buns is easy, but selling the value-added part on the long tail, it's more difficult. We are making our sales team more professional, both on the front end and back end, to capture all opportunities based on data and the ecosystem where we are inserted in. I must mention that one of the challenges will be the stability of Argentina, and we need always to pay attention. The growth there will always be related to what the Argentinian government and the Argentinian economy allows us to operate in a safe way. The guidance is still valid. I just brought here for reflection to remember that we have a guidance. It just came out due to a follow-on, but we should fulfill the numbers for this year's guidance. Before I talk about ESG, I must show a little bit of our history in numbers. Everything that we've listened to is shown here in this slide. We have a net revenue CAGR that's very relevant of 31% since the expansion cycle. We started in 2017, and we want this arrow going up in the same way with the capital that was trusted to us this year for the next year. We've reached BRL 2.5 billion, and it should reach in 2022. For EBITDA, we have a CAGR of 28, which should be around 14%-16% until the end of the year. If we look until now, we are closer to the top end of the band of the interval, much closer, to 16 than 14. This shows a little bit of the beautiful history that this team and the 5,300 employees of Fras-le did in this last years. In my last two slides, together with Randon, and I like to mention this, we assumed public commitments together, both Randon and Fras-le in terms of ESG. I'm sorry for the slide, but I won't read everything, but we have five important commitments. Sergio also showed this, but I want to make two points here that are important. The first, specifically for the analysts and the people, the market people. Fras-le, when you analyze the questionnaire of good practices of CVM, it have a very important evolution from 2019 to now. The Investor Relations team is doing a very important work, and today we would already have governance level for the new market, the Novo Mercado, with the practices that are already established at the company. This can make the market analysts and the shareholders confident to invest in Fras-le and to look at it more closely. I will take the same approach as Sergio when we say that we need to reduce greenhouse gases by 40% until 2030. I would just mention that we have three verticals or three pillars that are relevant for this to happen. The first is renewables, renewable energies, seeking energy, solar or wind, which are the cleaner ones, and incorporate that into our matrix. The second is to promote circular economy, to make the scrap, the material processed in our units or collected from the market come back to the factory, so we don't have to extract raw material. The third is green products, pro-products that have a smaller carbon footprint, that its whole life cycle in its use or production they demand less energy for its use or production. Two very clear examples are Smart Composites that bring 60% in weight reduction. This is carbon. Looking at Randon specifically, both our hybrid AR trailer and the e-Sys, those are products that need less diesel to transport the same load. I'm mentioning Fras-le but also Randon because we are hand in hand in this journey. This was already mentioned by everybody who came before me. We started with products 100% asbestos-free since 2002. If we see many positive things in our journey, even the circular economy. Today, 10% of what Fremax puts in their ovens to generate brake discs, they recover from their products in the market. They don't need to extract raw material to manufacture the discs. This is already very significant for carbon and also inorganic materials that require much less energy in its transformation process. Our ESG journey hasn't started today. Today, we talk more, we give more emphasis, but Fras-le in its DNA, it has green solutions for the world. Now, I will pass on the microphone to Jessica, and thank you, everyone. We are coming close to the end of our event. I will highlight the invitation for those who are watching us online. Please ask questions through WhatsApp. First I would like to call to the stage Amanda to deliver the attendance seal from APIMEC. Good afternoon. I'm proud to be here. It's a pleasure in this presentation. I will give the APIMEC Platina of 21 years to the company. This is a sign of the commitment that in the last 21 years we were together, APIMEC, the company, and analysts doing this work of governance, transparency, and being partners. All this time in this process of modernization of the capital markets. Thank you and congratulations for the work that you do, and congratulations for this award. I hope that in the next years you will gain the emerald seal when you reach 40 years of APIMEC. Congratulations, and thank you for this partnership. In addition to this award, this meeting is also competing for the Quality of the Year award for best presentation. I would like to ask those who are online, please answer the questionnaire that you will receive by email. Those who are here, you have received a form, so please, I would like you to answer it. I think this meeting here is already among the best of the year, your answer will be important. Congratulations to the company for this seal. Now we'll organize the stage to receive the Q&A session. Meanwhile, I ask you all who are watching us online to send your questions through WhatsApp. You have the phone number on your screen. Now we'll have our Q&A. To answer the questions, I ask to the speakers to take our seats on the stage. If you're here in person, you can raise your hand, and we will bring the microphone to you. If you are watching online, we await your questions through WhatsApp. Lucas Marquiori from BTG Pactual. First of all, I would like to thank you for this event and your presentation. It's very enlightening to follow this journey. My question is related to the final presentation by Pontalti. You mentioned that the company has changed a lot in the last years. I think that since this cycle, you called it the first expansion cycle after the first follow-on, we saw a break, maybe a positive break of paradigm, the company entering, moving forward strongly with this multi-brand portfolio, adding brands of reputation that have value at the end. I wanted to know about these two points, how we should think about this inclusion of brands, and how is this process of replicating the value of the Fras-le brand in these new brands. Can I replicate distribution channel of Fras-le in Fremax and sales value of Fras-le in Nakata? Is this easy to measure and to follow? The second point, which is very interesting, is to break this paradigm that I need to sell only what I produce. We saw one example here of manufacturer outsourcing. I want to know how is this process of maybe not having the manufacturing, but having the responsibility of the commercialization. Those are my questions. Thank you, Lucas. I will receive and forward the questions. I think it's best for Sergio and Anderson to answer this question. Lucas, we answer the first one about brands. The team here, we discuss this every day. When I made a comment about Fras-le and Fremax, those are two brands that already had this premium position because they have a presence in OE and the market already recognizes the brands. They can capture a premium in the market. In Brazil, they work there very closely. When I go abroad, there are moments where Fras-le is more relevant than Fremax, for example. I'm talking about these two brands, and then later I can talk about the others. Sometimes it's smarter for us to expand in the brand, the dominant brand outside, than introducing a new one. I'll give you an example. In Europe, we use brake pads with the brand Fremax because it gained so much reputation in brake discs in the light line that for us to develop Fras-le would take a while. It's smarter to enter with Fremax. This capture of values we are being able to gain. Nakata's team also brought us an important expertise because the fact that Nakata produces only 30% of what they sell makes them. They need to have the IP, a strong IP, to ensure the quality of the product with the added value perceived by the market. They also need to make an additional effort as a brand to gain notoriety with the common packagers that exist in the market. Nakata's expertise of creating market or brand value is helping also the others, and we realize in this last year that all the brands have been able to navigate and to reach more the premium level than the competition, and this is related to brand positioning and the relation between the two. The second question is, I think I'll leave for you, Sergio. Yeah. Talking about the outsourcing of manufacturing. We acquired this expertise. We already practiced this in the Fras-le world before, but especially through Nakata, which brought a lot of experience and know-how in this sense. I would say the following: there's no doubt that outsourcing manufacturing is interesting. You will have less assets. You can add and expand your production capacity, your product portfolio without making a lot of investments. The good moments in the market is going up, you can add with less investments, and when the market is down, you can reduce your orders and you suffer less the impact of market downturns. There's no question that this is very interesting, but you can only do this successfully if you have a strong brand behind, if you have the credibility of the market. Imagine a company that has no reputation and goes to the market and is going to outsource their operation. You won't be able to sell. You won't generate the trust that you need in for the final customers that product is going to work, so that you're going to deliver. The condition is to have strong brands, and we have that, and we have the interest to do it when applicable for a country or geography. We are interested to expand. I see no reason to integrate or verticalize everything that we do, even because that would limit our growth plans. We don't have infinite capital, and we have bold plans, and since we distribute our finite resources, this requires a lot of expertise, and this outsourcing helps us a lot to fulfill our goals. Thank you, Lucas. I will combine here two questions of our listeners from the internet channels. We have a question by Gabriel Rezende from the bank Itaú BBA. Gabriel asks two questions. The first is: It's evident that Fras-le expanded its portfolio, made it more robust, and if we look ahead, what would be the lines that Fras-le could expand? And he asks: Would it be possible to sell batteries, for example? I think Anderson tried to make this more evident in his answer when he talks about that we want to operate at the corner. He kind of removed wheels and tires because there is some expansion in these complementary portfolios, but we look more into geographies today. In addition to seeing potential changes in the portfolio today, maybe the growth is more centered on geographies. I hope I answered. The second question, I want to pass that to Guilherme and Eduardo. Okay? Could they comment on the costs scenario? Today, the company will benefit or not in the drop in the input price. Historically, they can capture, or is it going to be passed on to the clients? Well, trying to answer here, we come from two complex years regarding metallic and chemical commodities. I'm gonna answer under the metallic commodities, and we will add with the chemical. We were starting to see some movement backwards these last few months, but international context is so complex and dynamic that we have been very cautious. During the most complex phase, the big expertise we brought was management and anticipation and movement that was happening in the supply chain. Fras-le was very connected and ahead of what was going on. Our global phase allows us to have a footprint and an anticipated vision regarding the competition. What will happen with this, we can have several strategies. We were able to capture a lot of value in the critical two critical years. Now it's a bit harder to do a reading. Paulo and Montagnoli can talk about this. If there's an expectation regarding the inflation movement that we had recently, and the sheets should start going back, and our customers have followed us. We're monitoring. We have followed with the protagonism and leadership we have. They look at Fras-le, what Fras-le will do. The competition tries to replicate. So we have our role, and the comments that we make here, not only you will be listening, there are other people that are connected that want to understand what is our path. We have a lot of management, and to answer the question, different from other product lines where we act, raw materials are important, but in friction, where I'm answering, they're less important than the process. Productivity, labor, excellence in operation is more important for us than what will happen in the supply chain that we have. That obviously are important but are not as important. I try to be a bit generic. The big advantage we have here in strategy is to be able to anticipate, read scenarios, see if it's going up or down, and with this, use our strategies, apply our strategies. I can say we have been successful these last two years. Eduardo, would you like to add something? Talking a bit about this commercial line that is impacted by the oil chain and chemicals, we had relevant inflations when we compare Brazil with our operations in China, India, U.S. We see strong inflation, especially in Brazil. But as I said in my presentation, we supply parts for the entire world, and we have the possibility to direct production in our operations. We were able to work to passing price on, working with costs, gaining competitiveness. Talking about the future, not just repeating what was said, we saw price stability, not a price reduction like in the metallic chain. We see stability in terms of cost and, as a consequence, stability of price. During the last two years, we were successful passing prices on, represented here with the sales team, especially in Brazil. Also in dollars, which is a lot harder to pass this price on because the developed countries don't have the difficulty of working with inflation as we do. It was hard, we did it, and I think we left stronger from this inflation period. There's a question. Ricardo, can you bring the mic to him? Sorry, the other one. Is it on? Good afternoon. Lage from XP. I want to talk about Guilherme's presentation, the segment, light segment, light line. You said this had more relevance, and it lost relevance to commercials. If after a few acquisitions, Controil and Nakata, the segment has gained more relevance in the mix of the company. Some points I want to hear from you. What are the main reasons to gain relevance in light line in Fras-le? Is it some market issue, you're addressing a larger market, or if it's diversification in Randon Group, a company that's more for heavy? I want to understand the plan when you restarted light line with the integration of the companies and commercial strategy in terms of product and thinking about the future, if the light line is what will continue to be more relevant in the mix or if there's a strategy geared towards commercial, thinking about Randon Group. What is this point to explore with you? Anderson, would you like to answer this one? Thank you for your question. Light line started with Controil in the past. We had, as we said, 20% friction in light line. A lot, the heavy line was dominating until then. When Controil came, we understood that this market has a high value we saw before the acquisition, and the first answer is the one that you answered. The addressable market is very large. We're talking about 46 million vehicles versus more or less 4 or 5 million trucks in Brazil. It's a very sizable market. What are the pains in the light line that are less present in the heavy line? Portfolio. The heavy portfolio is a lot more simple. The level investment is smaller compared to the light line because you need to have a robust offer. You miss. You must cover at least 90%-95% to become relevant. When you're talking in friction, for example, I think 10, 20 reference, we can cover almost everything in the heavy line. In the light line, we're talking about 10 times as much. The scale of the pain comes with this. Looking into the future, we will continue to invest in both lines. The ones that make more sense in terms of profitability, we're gonna invest more in those. If I could tell you today, invest in lining with the installed capacity we have makes a lot of sense, as well as investing in rotor. We have an interest to invest in shock absorbers because shock absorbers, there are some size to grow in the market. If I look at profitability, there are some lines that are more attractive than the others as well in heavy as well as in light line. If I look at market share, we have even more room to grow in the light line. You mentioned 15, 18, 20% in some lines. As Eduardo has mentioned, in the US we have 50%, 90% in trucks here. Looking at market share, the horizon, the sea to be sailed can be more attractive. There is a counterpart. It's more competitive, there are more players in the light line than in the heavy line, because everybody thinks like we think in that sense. Thank you, Lucas. I think it's Ricardo now. We're a bit late. Ricardo. After Ricardo's question, we have time for one more question, so I'll ask three questions. Good afternoon. Thank you for the presentation. Congratulations. I'm very happy to see you personally after this pandemic moment, and I bring three questions, trying to talk about some things that you presented in your presentation, and so we can go beyond. Starting specifically regarding this enterprise of bringing the operation of Nakata from Diadema to Extrema, I thought this was a brave move, seeing that the Fras-le group comes from a region that has a strong tradition with metal industry. Nakata comes from a strong region in this segment, and you came to a geography where where this tradition doesn't exist. As a consequence, we have additional challenges regarding training, attraction, retention of labor, quality, conformity in the productive process. On the other hand, a difference regarding labor cost, turnover. I think it's a new world that brings new experiences to you. I want to hear from you a bit, how is this happening and what opportunities this brings for future business, growth opportunities and greenfield. Everything that you live here brings new learnings for future expansions in manufacturing. The second question is regarding OEM abroad. The only thing regarding OEM that you mentioned was Tata Motors' contract in India. I wanna hear from you if you understand that growth opportunities for you as a whole, be it OEM or aftermarket, as you have an OEM contract allows you to have better reputation in different geographies. If you understand as a priority to conquer new opportunities in OEM abroad, if this strengthens the negotiating position as a manufacturer, as a global sourcing point of view to supply Brazil and abroad, with new contracts in a broader geography with higher bargaining power. If this is a priority to you today, how do you see this issue? I'm here trying to trace a parallel, but I think you can do this in the answer. The third question that is broader is regarding these innovation. You know, process innovation actions. Do you see, regarding everything that you do using data processes, the issue of treating better the distribution, expedition. Do you see opportunities from here? I would like to mention the outsourcing opportunities in manufacturing that you absorb with Nakata's experience. Do you see relevant opportunities to foster growth with a lower investment in, with less capital or cash or investment for the group? In other words, the growth that we see going forward from the point of view of capital allocation, we can see a high, structural growth in the future? That's my question. I will start with Antonio, that's gonna talk about what we mentioned regarding the transfer from Diadema to Extrema. Thank you for your question. I have to go back in time a bit because we are in Extrema since 2004, and we should charge royalties with for all the DCs that came here. Because 2004, when we came here, we were looking for a CD or a DC, and the biggest one had 1,400 square meters. At that time, we had a reason. We're bringing the distribution here. We have a lot of experience in Extrema. When we bring the factory, the main guiding star was the complex, to have the factory together with the distribution center there. It's an industrial region. No, it's not an industrial region. All the necessary care to bring and install the factory successfully is done. We have people, key people that worked in Diadema's operation that came here together with the operation in Extrema, and they continue in the Extrema operation. This operation has been working in a stable way since March, and today we have productivity higher than we had in Diadema. Everything that we are gaining in terms of synergy, even from the aspiration point of view, having both units in it, units here, gives us more opportunities for a workforce that we can capture very well with our people and culture. Why? There are so many people that want to grow in the warehouse segment, distribution, and supply chain, and people want to grow in manufacturing, and we can offer both worlds. In the beginning, it's always difficult to start a new factory. We had high levels of turnover because the people knew CD, but there's. Suddenly there's a factory. Today, in the factory, in less than one year since we was inaugurated, we have the same turnover than the distribution center, and we're very satisfied with the factory in Extrema. I hope that I have answered your question. Now, the question regarding global OEM, I'm going to tell you that in Brazil, we have 90% share OEM in heavy and a little bit less than 10% in light. Right, Guilherme? Currently, it's this. In the U.S., we have 50% share in the heavy Class 8 over there with our partner, and we have a relevant growing share in projects in China as well as Europe. I want to ask Eduardo to help me to answer, looking especially at the heavy line abroad. Thank you so much for that question. I talked about India because it was a contract that we closed this year, and this opened important opportunities with Tata. When we go to the Chinese market, we do have some contracts of supply that are ongoing. Foton, the biggest manufacturer of commercial vehicles in the world, they use our product and OES. Yutong, an important manufacturer of buses, uses our product. Besides a semi-trailer manufacturer, CIMC, the second biggest trailer manufacturer in China, leaves with our product original from the factory. We have Australia, for example. We supply for Iveco Australia from our plant in China. Well, we have many OEM customers in the Asian market already, and we have important fronts in Europe, like Hemerson has mentioned, with the main players, the big companies. We are inside quoting with our team, our engineering team. In Germany, we have access to quotes that we didn't have before, especially when we talk about disc brakes and ADB brakes. Yes, we have many fronts, not only in Brazil, but also international. We agreed I was going to answer the third question. Yes, I think that this innovation journey that César has conducted will certainly bring efficiency where we can transform raw material as quick as possible, convert it into a product, and service our customer. We have our benchmark in-house. Fremax can work with 10 days of stock, so its ROIC goes up. Fras-le has a bigger difficulty due to the productive process. When you look at the brake pads, it has different components. To manufacture a brake pad, you have to have a stock of a product, imagining if a car will need it or not. This chain is complex. Fremax, when we acquired, we knew it, they had the ability to have 10 days of security safety stock. They can quickly adjust to demand. They already brought an increase in ROIC that's very relevant for us. Nakata, since they only have 30% production, they are set light compared to its revenue. The ROIC, if you look at the last few years, the ROIC of the company improved substantially. The answer, we want to replicate this. We want to access markets, majority, with a reputation in the brand where we can optimize the existing footprint to supply markets, access revenues, not necessarily increasing assets. For spare parts, this requires capital investment for the part to be available in the end. It's intrinsic to the business. It's not like a maker, a car maker that knows the sequence of parts that they will produce tomorrow. Here, you don't know the shock absorber. The shock absorber broke, I'm happy. You don't know if it's gonna break or not. You have to have it available or else you lose a sale. Our customer demands this availability in all points of sale. There is a natural investment, especially for a finished product. The answer is team is engaged. We have ROIC reading in-house. We know we need to deliver more with the capital invested. Always. This is what we do. We will need to close our Q&A panel now. Due to time, if you have any questions, we can do it online later. We can schedule that. I'd like to thank you who are here in person in Extrema. We have a select group of investors and analysts who are here, so it was very good to have you here to talk about Fras-le. We will close our event. I would like to thank all our colleagues. We brought the executive force of Fras-le to show what we are thinking about the future, and we hope to see you in the next results call or in contact with the company. I would like to thank those who are watching us through the company's channel. Thank you, and see you next time.