Please note that this video conference is being recorded and will be made available on the company's investor relations website, ri.grendene.com.br, where the full earnings release material can be accessed. The presentation is also available for download via the chat icon, including in English. During the company's presentation, all participants will have their microphones turned off. After that, we are going to start the question and answer session. To ask a question, go to the bottom of your screen and click the question-and-answer icon, and then input your question. When your name is announced, a prompt to activate your microphone appears on the screen, and you must then activate your microphone to ask questions. We recommend that you ask all of the questions at once. We emphasize that the information in this presentation, along with any statements made during the video conference regarding the business prospects, projections, and operating and financial targets of Grendene, is based on the beliefs and assumptions of the company's management, as well as information currently available. Future considerations are not guarantees of performance. They involve risks, uncertainties, and assumptions because they refer to future events and, therefore, depend on circumstances that may or may not occur. Investors should be aware that general economic conditions, market conditions, and other operating factors may affect the future performance of the company and results in substantially different outcomes from those stated in such forward-looking statements. Today, we have the following company executives with us: Rudimar Dall'Onder, Chief Executive Officer, Gelson Luis Rostirolla, Chief Operating Officer, and Alceu Albuquerque, Chief Financial Officer and investor relations, as well as the company's key managers. I will now give the floor to Mr. Alceu Albuquerque. Please, Mr. Alceu, you can go ahead. Good morning. Thank you everybody for your presence in our video conference to disseminate the results of the second quarter of 2026 and the first half of the year. The quarter was marked by an environment of a challenge in consumption. In this environment, we try to preserve the profitability, operating profitability of the business and cash generation. We have observed signs of recovery, a gradual recovery of our lines. In the domestic market, it remained with the very selective consumption because of this very challenging environment, because of the high indebtedness levels of the population and high inflation rates influencing low-income people. Added to that, the population, especially the low-income population, they have less money on their pockets for consumption, especially to buy non-essential items such as footwear. This environment created a more selective consumer trying to make purchases in the more accessible categories. In the international market, we continue growing in volume, focus a lot more in Latin America. That supported the shipping for international markets. We try to preserve our profitability. Gross margins are stable, positively impacted by raw materials that have compensated the pressure of labor, and a mix of commercial products that are more accessible. We continued very rigorous with our operating expenses in this control. Our net income had a drop, especially pressured by lower financial results because of the extraordinary distribution of dividends that happened in the end of last year, that our net cash flow had a significant reduction. Still, we kept a very robust cash position with BRL 1.5 billion in net cash. Having said that, the second quarter, the volume was up 26.8%, a decrease of 0.9%. This decrease is concentrated in the domestic market where we noticed the volume decrease 1.9%, while in the international market, we observed a growth of 4.8%, focused highly on the region of Latin America and concentrating almost all of our shipments. The gross revenue decreases 3.2%, reaching BRL 731.8 million. The net income has a smaller decrease of 0.4%. The markets have behaved. The domestic and the international one, there was a retraction of 5%, while in the international market, we observed a growth of 2.3%. The gross profit grew 0.6%, it was supported by the good behavior of raw materials, good performance that have compensated the labor in COGS, as I'm going to mention in a while. Gross margin reached 48.2% and 4 basis points. Adjusted EBIT decreased 48.6%, BRL 95.3 million, with a margin of 3.3%, a decrease of 2.2 basis points. It was adjusted by the GGB numbers. Excluding GGB numbers, we have this decrease of 2.8 basis points in our gross margin, and the adjusted net income decreases 48.6% for BRL 95.3 million, impacted by the financial results, especially because of the high distribution of dividends on the quarter. The net margin, recurring one, is a retraction of 17.5 basis points. Going to the detail of every single market. If we observe the domestic market, Division 1, all the brands except for Melissa are in the Division 1. In the domestic market, we observe a consumer that's more selective, concentrating a demand in more accessible categories and channels that circulate more money, like self-service, direct and indirect channels. They are our distributors and our wholesalers that buy our products to sell to smaller markets in neighborhoods. The gross revenue of the brands decreased 7.5%, especially impacted by the revenue per pair because of the commercialization of demand of product with lower prices. The volume have a decrease, a retraction, -1.8%, and revenue per pair, -5.8%. The highlight is the growth of 15.7% in the e-commerce with the Division 1 online brands. When we see the dynamics of selling and sell-out, we observe a scenario that is higher than the selling, indicating more cautious in the reposition of inventories, recomposing inventories for the future. As I mentioned before, the more accessible categories and the channels with more circulation, they have better performance inside the brands of Division 1, Ipanema with the men's segment, with Rider, Cartago, and the boot segment. They are the ones that led the growth. They led the growth in the second quarter. With products with more value added, these products have a more challenging scenario. Talking about Melissa. Melissa grew in revenue 2.6%, volume decreased 3.2%. We observed that as the revenue grows, volume decreases. We have a revenue per pair of 6.0% growth. We could keep our premium positioning and our capability of selling products with more added value, even in this challenging environment. Online, Melissa sales GMV, that take into consideration sales done by Grendene, and by our franchises. Using our online platform, they grew 6.9%. Observing this dynamic of the selling and sell-out of Melissa, we can notice that the selling and sell-out have similar behaviors, indicating a balance between end consumer and the repositioning and the retailers. In the second quarter, we had the World Cup, where we could observe a significant reduction in the flow in the Melissa clubs, the stores during the World Cup. As I mentioned before, e-commerce had a very positive performance, compensating for the less flow in the physical, the brick-and-mortar stores. While the selling just accompanied the increase of the sell-out. We started the second quarter with 438 franchises, when compared to 419 franchises in 2025. In the international market, Latin America just supported the shipping growth. We have positive KPIs of gross revenue in USD and BRL. Gross revenue increased 2.3%. When we look in USD, it was 14.8%, and the volume grew 4.8%. It was supported by the shippings to Latin America. What we could observe in the international market and environment, challenging one, marked by regional conflicts, exchange rates, and our international distributors also were very careful with their inventories. The growth is concentrated in Latin America. Because of the regional conflicts, we can see a lot of logistics disruption. The growth in international freight costs, started with the online sales. The digital channel combined growth with higher profitability and share gains in the domestic sales. GMV grew 12.1%. Volume per pair grows 4.1%. Even with a decrease of 14% in volume of sessions, gross margin grew 2.2 basis points, reaching 71.3%, while recurring EBIT on the online channel grew 10.8%, going up to BRL 1.4 million. The general shares of our online sales in the domestic market on total sales, see 6.3% when compared to 5.3% in the second quarter of 2025. When we isolate Melissa, the online sales represent 18.2% of everything we sell in the domestic market. Here we are showing what impacted the gross revenue from BRL 756.2- BRL 731.8 is a decrease of BRL 23 million. The volume reduced our internal revenue and impacted negatively our gross revenue in BRL 17.5 million. Volume, price, and mix. Volume adds BRL 8.7 million, while price and mix, they added BRL 18.4 million. The exchange rate, the average was BRL 5.4 compared to BRL 5.65 last year in the second quarter. It decreased our gross revenue in BRL 23 million. Starting with our COGS. The reduction of the costs in our raw materials was the main reason for our growth in gross margin, which we had an increase in 0.4 percentage points. When we observe the factors that compose our COGS, as I mentioned before, raw materials that went up from 23% and it's representing now 22.3%. It's a gain of one percentage point, while labor, the share was 0.2 percentage points. This increase in labor reflects basically the payroll. Since last year, we have been observing the payroll costs. With the commercialization of products that are more accessible, we have a dilution of our fixed costs. Also we have an increased complexity of products sold. Even though they are more accessible, we observe more complexity in the production of models. To our operational expenses, total ones, I include the GGB, and I include the results as well. When we invest through a bonus, then you have other costs. When I consider the total expenses, 9.7%, when we do the adjustment, recurrent, the operational recurring remain practically stable with a growth of 1.5%, which is below the inflation. Total commercial is 2.4%, when I consider the expenses, recurring expense of GGB, I have a growth of 1.8%. The administrative and general expenses total, once they dropped 14.1%, when I exclude GGB data, I have 1.2% of growth. When we look to the total commercial expenses and the total administrative expenses, we have retractions of the expense. When I exclude the GGB, we have a growth because this shows the work that was of restructuring that we did in the structure of GGB, where we had significant reduction of the operational structure of the company. Here we can see a graph that shows the impact of our EBIT. Here in the left part, we have the EBIT. The second quarter 2025, it was BRL 42.5 million, and for the second quarter, it went for BRL 9.7 million. Here we see that the net income brought a negative impact of BRL 2.4 million and the negative impact of BRL 58 million. As I mentioned, we have in real estate investment around BRL 1 billion. Basically, the instrument that we use are either these COGS or holdings. When the investment are done in holdings, the return impact the impacts. In the second quarter, we had several project launching. How does the accounting part, the booking part work through holdings? When we do the investment, until a project is launched, we then carry this investment for the value of the main value. When the project is launched, all the profitability is seen during the launching. Last year, we had several project launching that they had retained profitability that was seen in the second quarter. This year, we did not have the launching, so we have a retained profitability to be recognized because there was no launchings of the referred project. All the other items, variation of IOE, oh, sorry, COGS, they helped us to have a positive EBIT. When I do the reconciliation of accounting EBIT to BRL 9.7 million for the adjusted EBIT, we have BRL 6 million of recurring expenses in the second quarter of 2026. Regarding to the GGB, basically referring to operational GGB plus BRL 2 million, which is the inventory for GGB. Here you see the financial result. As I mentioned, we had a retraction of the result of 34%. This reduction is explained because of the low balance invested, 47% that was invested. We had BRL 9 billion invested. In the second quarter, we had around BRL 6 billion. This was because of the payment of dividends throughout this first quarter. We do the adjustments. The real estate project that we launched in the past, I then bring BRL 50 million inside our financial results, and this result is part of the remuneration of the cash flow and not of the operation. When I do this adjustment, our adjusted financial result has a reduction of almost 61%. We have around BRL 1 billion invested in our real estate investment projects, and since its launch, it has a retained profitability of 27% of the CDI. We go more objectively in the first quarter results that are very similar to what we observed in terms of the behavior. The second quarter, the volume grew 0.3%, reaching 52.5% in pairs. The international market had a retraction and the domestic market growth in 3%. Gross revenue drops, the retraction we see both in the international market and in the domestic market that reduced 3%. The gross profit reduced 6.5%, reaching almost BRL 465 million with a gross margin with a retraction of 1.7%. Adjusted EBIT reaches BRL 74.8 million with a retraction of 41%, with a recurring EBIT margin of 7.6%, a retraction of 4.7%. Our adjusted net profit reaches BRL 217.4 million, very much impacted by the reduction of the average balance with a retraction of 2.3%. Here, the items that impacted our revenue, the internal market and the gross revenue. The mix, which is more accessible, it reduces our gross income. We see while the mix price added BRL 65 million in gross revenue. There was a reduction of gross revenue in BRL 42 million because of the 10.5% of devalued. Our COGS, we had 1.7%. Raw material is helping the gross margin with a lower intensity, as we observed in the second quarter. Representativeness of raw material on the net income went 22%. Labor in the first quarter, as observed in the second quarter, it represents 1.6% above the net income when compared to the second quarter. The impact of labor and also the remuneration of the payroll and a better dilution of cost because of the commercialization of the portfolio of items that are more feasible, we have a lower dilution of the cost of labor. Our total operational expenses grew 2.4%, being that the commercial expenses 5.4%, general and administrative expenses reduced 6%. When we exclude the GGB, the total expenses, they grew 0.3% under the inflation of that period, administrative and general expenses reduced 6%. When we consider total expenses, that grew 1.9% when we exclude GGB data. Once again, the same comment about the second quarter, this reduction, when we look to the total with a slight increase under the inflation, when you see excluding GGB shows the strong work that we do to reduce the operational structure of GGB in the past. Once again, the graph shows what impacted our EBIT in the first quarter. In the first quarter, the explanation regarding the equity for real estate investment is the same for the period of the first quarter as we saw in this second quarter, like the first quarter. For example, COGS, commercial and administrative expenses and others, they have added a bit to Grendene. When we consider the accounting-adjusted EBITDA, we had BRL 3.5 million of non-recurrent expenses, and the main components here are CIDE over foreign income. That was an agreement that we did with the IRS because of the new understanding of the incidence of CIDE over the payment of the license abroad, and we had the results of the GGB in this first quarter. The financial result, very similar to the first semester, similar to the second with the average balance, which was 32.5% under. In the second quarter, it was BRL 58 million. The adjusted is BRL 56 million of financial result that impact our EBIT. We do an adjustment for the financial results because this reflects the remuneration of our cash flow and is not part of the operation. Lastly, the retained result of this semester was BRL 191 million. When we take away the reserves, we have BRL 3 million for the calculation of legal reserve, and we have to distribute BRL 114.3 million. As we have distributed BRL 55.7 million in the first quarter, in the second quarter, we still have to distribute BRL 58.6 million. How will they be distributed? BRL 28.6 million will be distributed because of dividends and almost BRL 30 million gross or BRL 24.7 million net through the JCP, which considers these 17.5% of the net value. This will be paid for the shareholders that have shares on the August 23rd. This share will ex-dividend on the August 24th. This is what I had to present regarding the figures of the second and first semester of the year. We have the question-and-answer session. If you want to ask questions, you have to click on the question-and-answer button at the bottom of your screen, write your question to get in the queue. If you receive a prompt to activate, your microphone will appear on the screen, you will ask the questions. We ask you dearly to ask all your questions at once. Let's go to our first question. It's from Julio Cesar. Good morning, everybody. First, the EBITDA margin adjusted in 3% on the second quarter of 2026. What do you consider a connection with mix discount and fixed prices? The second question, on the quarter, they were generating BRL 333 million in operating cash and accounts receivable. What would be the cash generation and working capital today? Sorry, it was just too fast. Thank you for your question, Julio. The first question is in relation to the EBIT margin. It was basically impacted by the commercialization of a more accessible mix of products. In this scenario, in this environment, the macroeconomic environment that's highly challenged, we observe a demand for more accessible products or goods, and that impacted the EBIT margins with less dilution. Reminding that the second quarter is always our quarter with less value because of the seasonality. Is the quarter with less value, where we have less dilution of our costs. For the second half, third and fourth quarters, we will have a recovery of margins, and we will commercialize items with more added value. In relation to the cash generation, as I mentioned before, our business is highly seasonal. On the second quarter, it represents 60%-70% of our sales. We always have to compare the cash generation of the quarter with the same quarter of the previous year. We don't have an alteration, a change in the composition of our working capital components, accounts payable, or accounts receivable. I don't see a different dynamic than the previous years. Our next question is from Bruno Loureiro. Grendene has a solid history of cash generation, we noticed that the dependence of the domestic market is exposing the revenue to macroeconomic local consequences. We operate. What's the strategic barrier? We don't use the idle capacity and for a more robust international capacity. Secondly, in relation to the line of products, the portfolio is focused always on the same categories. Is there a study to diversify for new segments and materials to avoid market share stagnation and to attract new consumers? Lastly, observing the capital structure and productive capacity of Grendene, I would like to know the vision of the directors of the executive officers of the future expansion for new markets internationally as a way to reduce dependence on domestic market. Besides that, what stops Grendene from expanding and diversifying its portfolio, trying to find new sources of revenue and value added, just like Vulcabras and Alpargatas are doing? There are many questions in one, what I understood is that one and three are very similar. It's reducing the dependence on the domestic market and expansion in the international market. We are trying to expand in the international market. Three years ago, I don't know if you remember, we developed a joint venture with the people from 3G in a way to exploit the two biggest markets of footwear, which are U.S. and China, 2024. We dismantled that operation, people from Grendene observed during this period that the expansion for the international market is not something that happens quickly. It's hard to build international brands and distribution channels internationally. That demands financial investments, high ones, time, and education. We've been working very strongly to increase our volumes in the international market. We have been reviewing our international distributors because today, with the exception of U.S. and China, we work with international distributors in every market because we understand that they know their markets more than we do. They have more capacity than us to understand the market. What happens is the international market is also challenging. We have been observing in the domestic market, for example, a lot of imports coming, products coming from Asia, that's not only in the Brazilian market. Asian products, Chinese products, they are invading everywhere, many other international markets. We have been observing a higher competition with Asian markets, not only in the domestic market, but also in the international. What we have been doing. We have been investing in marketing strategies. We have been investing in actions to strengthen our brands in a way to increase a desire by our products and brands in the international market and the domestic one, too. To answer your second question that asking why do we keep always the same categories and materials is, in fact, if you observe, we have a broad line of products and categories. We work with slippers, slides, clogs, wedges, boots. We have a wide portfolio of products to meet the demands of footwear in Brazil and in the world. We are also growing our production of EVA products. They are more comfortable, they're lighter and softer. They have more value added perceived by our consumers. I think we are doing the right movements to grow in the domestic and in international markets. As I mentioned before, the consumer environment, especially of the low-income people, which are 70% of our consumers, excluding Melissa and some lines of Rider. This low-income population have been suffering, and it's been a while. Besides developing new products as we are doing, new archetypes and using new materials, we have also identified that we need to strengthen the desire. We have to increase desire in relation to our brand. Last year, we decided to strengthen investments in media. We hired one of the biggest advertising agencies in the country to help us to reposition and strengthen the position of Ipanema. This is something that doesn't happen quickly. It's something that must be consistent. It takes a lot of commercial efforts to strengthen the desire, to increase the desire of our brands. I think with that, I answer your three or four questions. Now we ended this question-and-answer session. I would like to give the floor to Mr. Alceu Albuquerque for the final considerations. Again, thank you and good morning. Thank you for your presence in our video conference, and we are available here in the IR department to answer any questions, and I wish you a very great weekend. Thank you. The video conference of results for the second quarter of 2026 is now ended. The IR department is available to answer any questions you may have. Thank you and have a great day.