Morning and welcome to Movida's Conference Call to discuss the earnings of the first quarter 2024. Today with us we have Gustavo Moscatelli, CEO, Pedro de Almeida, CFO, and Camila Franceschini, IRR Officer. This event is being streamed on Zoom and can be followed on the company's website at ri.movida.com.br. We would like to inform you that all participants will be only watching the event during the company's presentation. We'll then and you'll also be able to send their questions on the platform, and questions are going to be answered by management during this conference call or by Movida's Investor Relations team after the conference call has ended. I'd like to remind you that the content present is going to be in Portuguese with simultaneous translation into English. For those who wish to follow the audio of the presentation in English, please choose the language on the interpretation icon at the bottom right of the platform. Once again, if you don't speak Portuguese and want to listen to the presentation in English, just press the interpretation button on the bottom right corner of the platform and choose the language accordingly. As of now, participants are free to submit questions on the Zoom platform. All you have to do is to click on the Q&A button at the bottom of the screen and type your question. Before moving on, we would like to emphasize that any statements made during this conference call regarding the company's business outlooks, projections, and operation and financial targets are based on the beliefs and assumptions of Movida's management and rely on information currently available to the company. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties, and assumptions since they refer to future events and therefore depend on circumstances that may or may not occur. General economic conditions, industry conditions, and other operating factors may affect the company's future results and lead to results that will be materially different from those in the forward-looking statements. The results discussed in the presentation are adjusted for non-recurring items, and reconciliations can be found in the earnings release and in the fundamentals table available on the company's I website. We'll now turn the call to Mr. Gustavo Moscatelli. Please, you may go on. Good morning, everyone, and welcome to Movida's first quarter 2024 earnings conference call. I'd like to start by thanking our more than 6,000 employees for their commitment and determination in delivering the results at the beginning of the year, which mark a new phase of positive results for Movida. Now I'm going to move on presenting the results, starting with slide 3. We're very excited to announce the results for the beginning of 2024, where we have delivered great results and record revenues, EBITDA, and operating margins. In the first quarter 2024, we delivered net revenue of BRL 3,000,000,000, up 12% from the first quarter 2023. For the first time in history, we exceeded the BRL 1,000,000,000 EBITDA level in the quarter, ending the quarter with BRL 1,590,000,000, a growth of 21%, and EBIT of BRL 612,000,000 a growth of 26% over the same period last year. I'd like to highlight the delivery of adjusted net profit of BRL 62,000,000, reversing last year's loss, and the annualized return on invested capital for the quarter of 10.5%, up 2.5 percentage points over the first quarter 2023 and 1.8 percentage points higher than our average cost of debt. The results, combined with a level of operational efficiency, show a significant change in level ahead 2023 and the start of a cycle of value creation for shareholders. On slide 4, we bring basically the priority work fronts for the company. As a demonstration of our commitment to create value for shareholders, we formalize through guidance the operational projections that are part of our focus on executing the strategic plans for 2024, and we already see important developments in all indicators. Starting with the rental car segment, we started to readjust daily rates and have already recorded a 12% increase in daily rates compared to previous years, significantly improving the Eventual rates products. Even so, over the next quarter, we will continue to adjust the Eventual product pricing. On monthly rates, we started working with them in April, and we'll see the results as of the second quarter. As a result, we have made significant progress in profitability, demonstrated by the growth in yield from 3.5% in 2023 to 3.9% in 2024, represented by the consolidated rate of BRL 130. With the ongoing actions to adjust prices of Eventual monthly products, we are confident of reaching the year's guidance of a yield of 4.2%. On slide 5, we bring details on improvements in used car sales, where our priority is to increase productivity and efficiency of our stores by increasing volume in retail sales and reducing discounts compared to the FIPE table. As you can see in the first chart, we sold 36 cars per store in the first quarter, up 29% compared to 2023, already exceeding the guidance of the year of 34 cars per store. Another important indicator is the efficiency of cars in relation to the FIPE table. In retail, we had a discount of 5.3%, that is better by 1 percentage point over 2023, and in wholesale 16.1%, an improvement of 1.4 percentage points over 2023. In both sales channels, we have already achieved our guidance for the year. As you can see, we had significant improvement in profitability and efficiency in used cars, which is a result of the pricing and distribution tool for cars, both in retail and wholesale. In addition, we brought a new piece of information that has been very important and will be a differentiator in the performance of used cars, which is the change in the inventory mix of cars as a result of the change in the fleet mix that we made over the year. Our current mix has a profile with greater liquidity and sales attractiveness, cheaper cars, and models with greater liquidity. As you can see, the average FIPE price of our cars in inventory has changed from BRL 37,000 per car to BRL 77,000 per car, undoubtedly contributing to the improvement in sales. On slide 6, we bring as priority the greater allocation of capital in the GTF segment, as it guarantees greater profitability and predictability in cash flow, as well as higher operating margins for the company's consolidated results. From 2022 to the first quarter 2024, we moved from 45%-58% of invested capital. If we continue in this pace, we are confident of reaching the guidance of 60% during the year. The second chart of this slide shows the strong contracted growth with annualized revenue of the first quarter this year, reaching BRL 2,800,000,000 of annualized revenue, a growth of 13% compared to the third quarter. Also, I'd like to highlight the EBITDA margin delivered in the first quarter of 74.3%. In addition to the results, we also bring the volume of cars in our balance sheet fixed assets that are being implemented. As you can see in the final chart, among the GTF cars that we have, we have more than BRL 1,200,000,000 to be implemented. That is, that we're not generating revenue until March 2024. Out of this, BRL 395,000,000 have already been paid for. That is, we already have an impact in financial expenses, but we haven't yet had the revenue in EBITDA and income statement. The profile of the contract is very healthy, average IRR of 14.3, monthly yield of 3.1, which generates revenue of BRL 445,000,000 per year. On slide 7, we bring the evolution of our EBITDA margin from rental activity since 2016, showing that now we have reached the best operating results since the IPO. This record level of margins reiterates the assertiveness of the actions implemented and reflects a significant improvement in the use of invested capital and the cost and expense reduction actions that we have taken over the last year, positioning the company for a new phase of value creation. In rental car, the margin EBITDA was 64.3%, demonstrating our new level of profitability in the segment. And in GTF, we reached an EBITDA margin of 74.3%, with consistency and diligence in focus in the signing of new contracts with very healthy margins. On slide 8, we bring our fleet movements. In the first quarter 2024, we saw an important opportunity to accelerate fleet turnover with more efficiency. We had a growth of 4,800 cars in GTF and kept discipline in the management of the rental car fleet, with a reduction of 3,100 cars in the fleet after the end of high seasonality. The total fleet for the first quarter 2024 was 244,719 cars, virtually unchanged from the previous quarter. I'd like to reinforce our focus on the efficiency of used invested capital. In GTF, we grew the fleet by 3.7%, while revenue grew by 13%. In rental car, the fleet was decreased by 3%, and revenue grew by 11%. Discipline allocation of capital supports our commitment to create value to shareholders through the efficiency of the capital invested. On slide 9, we bring the evolution of the depreciation of our assets. Starting with the rental car segment, we saw an improvement in the profile of our fleet due to the purchase mix with cars with a lower average price and commercial conditions with OEMs. This made the average depreciation to be BRL 6,400 per car per year, new cars depreciating between 8%-9% a year. In GTF, annualized depreciation was BRL 7,600 per car, keeping depreciation rates between 8%-9% a year. Slide 10 shows the company's financial consolidated results. Net revenue was BRL 3,022,000,000, an increase of 21% compared to the fourth quarter 2022, and rental revenue grew by almost 12%. It's important to mention that our fleet grew by 7.6% quarter-over-quarter, which demonstrates productivity gains in our operation. EBITDA reached BRL 1.059 1,059,000,000 in the first quarter, an increase of 21% compared to the same period last year and 19% over the previous quarter. EBITDA from rental grew even more by 29% compared to the same period last year. The growth in rental EBITDA was 68.3% in the first quarter this year, an improvement of 5 percentage points compared to the previous quarter and the same period last year, which shows how right the actions implemented in the quarter were for all business lines. EBIT in the first quarter reached BRL 612,000,000, up 26% over the same period last year and 64% over 4Q23. Once again, I'd like to highlight the delivery of our adjusted net profit, which reached BRL 62,000,000ion in the quarter, reversing the losses of previous quarters and marking a new phase of positive results for Movida. On slide 11, we showed the results of all the effort and changes the company has been making through the evolution of our return on invested capital. In the first quarter, return on invested capital reached 10.5%, an important evolution compared to recent years and showing an inflection point to deliver value to shareholders, exceeding the cost of debt by almost 2 percentage points. The evolution, combined with ongoing actions such as increasing the price of rental car, greater productivity in used vehicles, and more capital allocation in GTF, will lead us to growing and sustainable levels of ROICI spread. Now I'm going to turn the call to Camila, the company's IR officer, to present the results of each of our business units. Camila. Thank you, Moscatelli. Good morning, everyone. Slide 13, we begin with the operational highlights for fleet management and outsourcing. As we said before, this line continues to gain representation in our consolidated operations. We closed 1Q24 with a total fleet of more than 135,000 cars, up 18% over the first quarter 2023. Our backlog for future revenue, which takes into account contracts already in operation, is BRL 5,800,000,000, more than double that of last year. Compared to the fourth quarter 2023, growth was 28%. The next chart shows a total of more than 23,000 cars we have to deploy from contracts we signed during the first quarter 2024, growing 264% year-on-year. It's important to mention that the balance includes both the cars we have already bought and are on our balance sheets that we showed in slide 6, and the cars that we're still negotiating or waiting for OEMs to produce. The indicators show the potential growth of GTF for the coming quarters, ensuring greater predictability and stability in total rental results. On slide 14, we move on to GTF financial indicators. Net revenue was BRL 720,000,000 in the first quarter 2024, up 34% over the first quarter last year. Compared to the last result release, that was a 13% increase. In addition to the expansion in the operating fleet, we had sequential increases in revenue per car, reaching BRL 2,300 in the first quarter 2024, up 5% quarter-over-quarter and 16% year-over-year. The quarter's EBITDA was the highest ever, up 48% on last year to BRL 535,000,000 in 1Q2024. As Moscatelli mentioned earlier, the segment's EBITDA margin also reached a record number of 74.3%, up more than 7 percentage points compared to the same period 2023. As a result of a healthy profile of results, EBITDA per car also reached a new high in 1Q2024, with an average of BRL 1,583 per month, or up 29% compared to 1Q2023. On the next slide 16, we show the rental car operating highlights. Total fleet was 110,000 cars in March 2024, virtually stable compared to 2023. This shows discipline in the execution of capital after the seasonality of the segment. The average daily rate was BRL 130, up by almost 3.5% on Q3 for Q23. It's important to remember the evolution we had in eventual rates, which grew 12%, as mentioned before. In the bottom part, we have operating occupancy rates, which are related to store demand and efficiency and rose by almost 2 percentage points over the year, closing the first quarter of 2024 at levels about 80%. Total occupancy rates remained virtually stable compared to the first quarter 2023. Slide 17 shows the rental car financial highlights. Net revenue was BRL 752,000,000 in the quarter, an increase of 9.5% compared to the first quarter last year and 11% over the fourth quarter. EBITDA of BRL 473,000,000 in the quarter was up 13.5% on the first quarter last year. Compared to the fourth quarter, growth was even higher, 27.5%. EBITDA margin for the first quarter reached a new level of profitability, 64.3%, the best adjusted measure reported for the company. With growth of 2.3 points compared to the first quarter 2023, we also showed the effectiveness of our actions to reduce costs and expenses. As a result of our efficiency, EBITDA per car was BRL 1,795 per month on average, up 12.4% the first quarter. Compared to the fourth quarter, the increase was 15.3%. As shown before, revenue per car followed the upward trend and reached BRL 3,106 per month in the first quarter 2024. That, combined to the optimization of capital invested in the operation, led to a 0.4% increase in yield compared to the first quarter 2023, reaching 3.9% a month. On slide 19, we bring used cars indicators. We maintain sustainable performance in the operation with an increase in sales volumes to 23,000 cars sold in the quarter. This is growth of 35% compared to the previous quarter, demonstrating the capacity of our installed structure. Net revenue amounted for more than BRL 1,500,000,000 in the quarter, up 4.3% over 1Q23 and 32% over 4Q23, reflecting the evolution of our pricing. EBITDA margin remained at normal levels for this business line, at 2.5% in the first quarter 2024. Now I'm going to hand over to Pedro, our CFO. Pedro. Thank you, Camila. Good morning, everyone. Going to slide 21, we go a little deeper into the profile of our balance sheets. The first chart shows the evolution of net debt, which in the end of 1Q24 amounted to BRL 12,600,000,000. An important theory is the coverage of net debt by net assets, basically cars with low age and mileage. We proved the strength in 2023, especially in the first half of the year, when we reduced the rental car fleet and allocated capital mainly to liability management, therefore quickly transforming our debt costs. Our leverage was maintained at levels close to 3x throughout the year, with 3.9x in the first quarter 2024. If we annualize the recurring EBITDA of the first quarter 2024, leverage would be 2.85x. As we have already shown in previous slides, most of this potential is in-house, especially with new GTF contracts. I would like to emphasize the strength of our capital structure that enables us to continue to develop a plan with leverage close to 3x, with no need for additional capital via equity. In the lower left corner, the cash balance in 1Q24 was BRL 3,200,000,000, which keeps us in a comfortable liquidity position. Better payment terms and conditions negotiated with OEMs continue to help the company's cash flow dynamics and working capital management this quarter. Our net debt and supplier lines are stable compared to 2023 in the first quarter this year, even with a slight increase of our net assets. On slide 22, we show our debt maturity schedule. In 1Q24, we issued a bond in $500,000,000, maturing in 2029 to pay short-term, more expensive debt. In addition, we carried out bilateral extension initiatives in the amount of BRL 1,400,000,000, extending maturities of 2024, 2025, 2026 to 2027, 2028, 2029. The initiatives combined favor our maturity schedule and enable us to reduce financial expenses by approximately BRL 16,500,000 per year. As we are swapping short-term debt of CDI 2.8% a year with longer debt at CDI + 2.3% a year. These new issues demonstrate the diversification of funding sources and the support that the credit market gives to our strategic plans. Finally, I'd like to remind you that the company continues to have the best credit risk rating, AAA, by Fitch Ratings. I turn the floor back to Gustavo to conclude the presentation. Thank you very much. Thanks, Pedro. Well, finally, on slide 23, I'd like to reinforce Movida's new phase. As you have seen throughout the presentation, the development of operational efficiency combined with a solid balance sheet has enabled us to return to positive net profit at the beginning of 2024 and also an increased return on capital investment throughout the year. Strategic priorities for 2024 are being pursued with discipline. At rental car, we'll continue to focus on repricing Eventual and Monthly rental rates. The first phase of price adjustments in Eventual rates had an immediate effect on profitability and yield, and we'll continue with price increases in Monthly rates as from the second quarter. In GTF, we continue to focus on prioritizing allocation of capital in the segment, seeking even better gains in margin, and with discipline in signing new contracts with the right profitability. In used cars, at the beginning of the year, we saw the capacities to sell at our stores with a physical structure in place and no need to open new stores throughout the year. In the first quarter, we already saw an increase in the volume of sales per store, reaching 36 cars per month, and with discounts going down compared to the FIPE table. In addition, we'll keep discipline in the balance sheet with healthy leverage for the business and a cost of debt that allows value to be created to shareholders without new need for additional capital, as Pedro just mentioned. Finally, I would just like to say that I'm very excited about the company's achievements in this new phase. The indicators give us the confidence to continue working with great discipline in the execution of our strategic plans and focus on operational excellence to extract maximum value from our assets. This enables us to generate the right value to our shareholders, the satisfaction of our customers, in an equation that guarantees sustainable continuous development of our business. I am certain that we are on the right track and confident about what we have to deliver. Now we are going to open to your questions. Thank you very much. Thank you. Movida's conference call is now open to your questions, initially just for analysts and investors. So, analysts and investors, if you have a question, please click on "Raise Hand" at the bottom part of your screen right now or at any time. If your question is answered before it is your turn, please press "Lower Hand" to leave the queue. When you ask your question, please speak close to your mics so that everybody can hear you clearly. Participants can also send questions in writing on the platform by clicking the Q&A button at the bottom of your screen. Please wait while we collect the questions from analysts and investors. Our first question comes from Victor Mizusaki from Bradesco BBI. Good morning. Congratulations on your results. I have two questions. One about the guidance: a yield of 4.2% at the rental car, and now in the first quarter you're already at 3.9. We did our math, considering the increase of 2% and the guidance that theoretically the daily rate to get to 4.2 should be BRL 140. If you think about the remainder of the year, and considering that we don't have too many Eventual rates, Monthly should go up. Our first question is: is the rationale correct? Can you talk a bit about what is going on in April? And also a question about net debt/EBITDA ratio. If we annualize the numbers of the first quarter at 2.85, what should we expect in terms of net debt/EBITDA ratio for 2024? Should we expect by the end of the year to get to below 3 times the ratio? Hello, Victor. This is Moscatelli speaking. Good morning. Thanks for your questions. Starting with the yield guidance, your rationale is absolutely spot on. We started working with rates on Eventual products. As you mentioned, in the first quarter we're able to pass on about 12% compared to last quarter, but the work has not finished yet. Although in your math you're talking about another 6% on monthly rates to reach the guidance. Of course, we are testing elasticity of demand, but we see room, at least so far, to increase eventual rates even further. We are doing, and we'll do that along the second quarter. In parallel, the monthly rates, we started working on that in April, already had results. I can already tell you that half of the percentage you mentioned was already captured in April. So the guidance, as I mentioned in the presentation, has not much risk, and we can have even positive surprises. We do not want to say much because we are not there yet, but we are working hard, and I think all the tools developed last year are being extremely valuable for us to be able to adjust our prices at the rental car without hurting demand and keeping at very high levels, as you could see in the segments: revenue and EBITDA. Leverage. We closed the quarter, the first quarter, with stable leverage compared to the previous quarter. We had high hopes that leverage was going to—we had an expectation, sorry, that leverage was going to go up. But the volume of sales increased by 35%. So the cash flow dynamics are very positive, and so is productivity. So EBITDA is going up. Sales are going up, and with that, leverage is probably going to be stable in the second quarter. And as of the second half of the year, we are going to start seeing a downward trend. We haven't given you any guidance for leverage for the end of the year, but more than guidance, we see a trend. And in the second half of the year, we are probably going to see a lower leverage ratio and stability for the second quarter. I don't know if I answered your questions, but you know, you can also ask a follow-up question. Thank you, Gustavo. They were answered. Our next question comes from \ Guilherme Mendes from J.P. Morgan. Hello, everyone. Moscatelli, Pedro, Camila. Thanks for taking my question. Two questions. First, used car market. If you could give us a bit of color about the dynamics of the sale of used assets, prices of the trends are not so clear in the market. So, how you see, not only the first quarter but April onwards and expectations for the coming months. Second, EBITDA margin. I understand that you had a non-recurring item, a reversal of provisions. I don't know exactly where they were allocated, but the straightforward question is, what kind of margin should we consider for segments, in a recurring manner, as of the second half of the year? Hi, Guilherme. This is Moscatelli speaking. Thanks for your questions. I'm going to start with the used cars. I think, we saw an important, development in the first quarter, not only in volume of sales but also productivity and efficiency of sales, trying to decrease discounts from FIPE tables, which naturally translate into higher profitability and creation of value to shareholders. We increased sales per store by 30% compared to 2023. We reached 36 cars per store with discounts way below last year and already within guidance. For April, we haven't disclosed numbers, but what I can tell you is that April, for all the indicators, is even better. The number of sales was better than 36, and discount was lower than what we disclosed, both in retail and wholesale. So the dynamics of sales in used cars are very good, and I think there are reasons for that. One, volumes and no adjustments that we made in the used car structure. We changed the team, incentives, a new pricing and distribution tool to capture the best value of each car per region. So I think there's a lot of science behind that. And there is one thing: we are starting to enjoy the inventory that we have available for sale. This is new information, but it's very relevant. You see, the average tickets of cars available for sale went down from 87,000 to 77,000. So more liquid, higher demand, and this is just the start. Most of the cars we bought last year to change the fleet mix, especially in the rental car, are still to come to the used car inventory. So the dynamics, I think, cannot deteriorate. As I mentioned, April was even better, and we think this is going to stay due to the changes made. EBITDA margin. We disclosed the bonus reversal, but I think it has to do with the credibility of the company and transparency. Now, the number is irrelevant in our consolidated figures. You're talking about approximately BRL 20,000,000n in the month. In the quarter, this is even less. We just had the disclosure in the month because we had the margin of the first two months. So when you do the math and the numbers don't match, this is strange. But, you know, in consolidated figures, this is not even 1.5%. It's quite irrelevant, but it has to do with the company's transparency and credibility before the market. Business margins, as you asked, we don't see them going down. The margin comes from improvements from the business top line in the rental car, improvement in yields, the quality of GTF contracts with 3.1 yields, and cost management that started last year, as we mentioned before, and is still going on. There's a lot to capture in costs and expenses. So we see no reason for pressures on margin. Quite the opposite. We think we can further improve the numbers disclosed in all segments. Very clear, Moscatelli. Thank you and have a good day. Our next question comes from Lucas Marquiori from BTG. Hello, everyone. Good morning. Thanks for the call. Also, two questions on my side. Guys, what can you tell us in terms of fleet planning for the whole of the year? We think of the beginning of 2024 compared to 2023, a priority on GTF, but final total fleet number for the end of the year. Can we think of growth? Just for us to have a color on that. Second question is your portfolio on the allocation of rights and what kind of costs you are considering for this. Thank you very much. Good morning, Lucas. This is Moscatelli speaking. First, I'm going to start with the fleet. Our guidance was to prioritize capital on GTF, and in the rental car, we are focused on the profitability of the business before talking about growing fleets. So in the rental car, I think we should expect a stable fleet year-on-year, or even a drop, as you saw, of almost 3,000 cars. As a counterpart in GTF, you should expect something close to 10% up, as we've mentioned in our guidance for growth. Total fleet that should be, I don't know, 5%-7%. So low growth. Again, the focus of the company this year is to extract the maximum value from assets and renew our fleet efficiency. So growth is not a priority. The priority for the company now is to create value with the assets we have and deleveraging the company in a sustainable manner. Second question, the assignment of rights. We do that every quarter. The more efficient working capital with the lower cost. And we assign receivables of very short term. So the volume is almost stable quarter-on-quarter. Of course, we see a growth because companies' revenue grow, and the average cost of this line is about CDI plus 1.8, which is quite competitive, and we continue want to continue with assignment of rights because it is a cheaper working capital, very efficient, and does not distort our cash flow because we are working in the very short term. \ Okay, very clear. Thank you very much. Our next question comes from Rogério Araújo, from Bank of America. Hello, good morning, Gustavo, Pedro, Camila. Thanks for taking my questions. I have two. First is a follow-up about increasing margins. On our side, it's a positive surprise. The margins in cost rates are helping. That was expected. But we would like to understand a few things. First, there was a reduction of SG&A in the rental car of 20% year-over-year. Where does it come from? Is it the reversal of the provisions of the bonus of BRL 23,000,000? Is it all on this line or not? The breakdown of costs and expenses. Personnel is going by 12% year-over-year. Perhaps it's the same reason, but I would like to understand the why and what we should consider from now on. Just to try and understand how recurrent these numbers are. Also, we had a deduction of revenues in fleet rental, and I would like to know why we had that and what should we consider from now on. This is the first question, and I'll ask my second question later on. Thank you very much. Hi, Rogério. This is Moscatelli speaking. Thanks for your question. Okay. The margin. As I mentioned before in a question already asked, we expect the margin to be maintained or even better compared to the first quarter. For two very objective reasons. The first is an improvement in revenue per capital invested. As you saw, one of the priorities of the company is to adjust rental car prices. Most of the benefit from margin came from the adjustment of rental car prices together with the cost reduction you mentioned. The yield went from 3.5-3.9. It's a lot of revenue with the same cost base. It's pure margin. Now, the second point you mentioned about costs. It is a priority of ours, and I did mention that in the end of the year. That was the last initiative of the improvements we announced last year to be worked on, and it is still ongoing. As you looked into the detail, we have a huge reduction on personnel. We really restructured the company, downsized our people, reduced marketing costs and other operating costs, and improved company efficiency as a whole. Not to mention maintenance costs that reduced more than 20% compared to last quarter. So I think we have gains in all lines of P&L, and this is how we are going to work, granularly, and seeking efficiency in all lines to capture the maximum value of each car in the fleet. Your second question? Thank you, Moscatelli. The second question is about the impairment you had in the fourth quarter. We did not see an increase in used cars margin, but we believe the reduction in residual value will translate in lower depreciation, not higher margin. In other words, do you have a cushion if car prices go down? You are at a reported depreciation level with normalized margins. And still about impairment, if you could talk about the disaster in Rio Grande do Sul that is unfortunately going on, any estimates to eliminating the impairment in your Seminovos? Do you know the cars that are located in the more hurt areas? So any information will help us at this point in time. Hi, Rogério. I'm going to start with your second question now. The used car margin and the impairment you mentioned. We had the impairment and adjustment in fixed assets in the fourth quarter because we had a mismatch of accounting values and market values. We are not going whatsoever to manage the balance sheet of the company by creating cushions. This is a serious company with governance, and we are going to be as transparent as possible with the numbers we have for the company at that point in time. This is what we did in the fourth quarter, and I did say that clearly. I expect the EBITDA margin in used cars to be stable between 1%-2%, which was delivered with a normalized depreciation of 8%-9%. This is what we planned for, and I don't see any changes there. As for the amount of depreciation that went down here, there is a very important factor, which is the fleet mix. So it's not only adjustments in the balance sheet in the fourth quarter. The fleet mix today, we have much cheaper cars than we had in the beginning of last year. The average fleet costs BRL 87,000 per car, now BRL 77,000-BRL 78,000. So depreciation is going to be lower. So I think these are the two factors about used cars. Rio Grande do Sul. The company, since the start of the tragedy, has focused and engaged all efforts to help our employees and community. Obviously, in parallel to that, our fiduciary duty is to look into the effects for the company, but it's too early to talk about impacts on company assets. Just so you know, to give you some news and not to answer. We have 16 stores in the region of Porto Alegre, 8 for rental cars, 8 of used cars. Out of the 16, one rental car and one used car stores were flooded. The rental car store is in the airport, and we were able to remove almost all cars. Only 10% of the fleet stayed in the store. And it is insured. So now we have to know how much we are going to have in terms of coverage, what's the size of impact, also where the rented cars are, but still do not have final numbers. But just for you to have some color of the size of the potential impact we have or we may have. Thank you very much. Yeah, very clear. Thank you. Our next question comes from Gabriel Rezende from Itaú BBA. Hello, Moscatelli. Pedro, Camila. Two questions. You talked about yield rates for the rental car. If you could talk a bit about GTF, it would be very nice. We see a very strong dynamics in adjustment of GTF rates. If you could talk about the marginal rate vis-à-vis the average rate, that would be good. And also car prices, if you could talk about the negotiation with OEMs. I understand that there is a relevant impact on your management, reducing vested capital by buying cars that are more appropriate. But if you could talk about prices comparing models that are the same, it would be very good. Thank you. Hi, Gabriel. This is Moscatelli. Thanks for your questions. Starting with GTF. We see a very positive dynamic in fleet management and outsourcing, both in terms of addressable market demand. You see that it's growing. As for profitability. So we have been working with customers and sectors that perhaps there is not so much competition. So we are having good profitability in marginal contracts with huge discipline of just moving on with contracts that we are confident about profitability. And that has been translating into better margins quarter on quarter. You certainly have been following that and have revenue per car. The dynamics are the same. Revenue per car grew 17% year-on-year. If you take a look at our backlog, we have revenue of at least 25% gross per car. Of course, we can have some contracts with cars with a higher average ticket, but we have a trend of growing revenue per car in fleet management and outsourcing. Your second question about OEM negotiations. Well, since the end of last year, negotiations have been very good. Maybe similar or even the same as they were before the pandemic. We are enjoying the benefit of asset turnover that we worked a lot last year and better commercial terms from OEMs, both in terms of price and time. We sold 35% more cars if you consider the first quarter of this year over the fourth quarter last year. With that, we renewed the fleet faster with cars with better conditions so that the marginal profitability of cars to shareholders is captured better and faster. So the dynamics continue very positive. Very clear, Moscatelli. Thank you very much. Our next question comes from Lucas Barbosa from Santander. Moscatelli, Pedro. Thanks for the opportunity of taking my question and results. I have a question on leverage. When you take a look at your leverage along the year until the end of the year. On one side, you have the 12-month EBITDA getting stronger, which should help decrease leverage. And the other side, I would like to understand two things that may impact leverage. The first, the supplier line that went down a bit the first quarter. So what kind of stability are you thinking on this line and when? And also receivables. What do you think is going to happen along the year? I know Moscatelli did mention that in the beginning of the call, that you use it much more as a sub for working capital. But I would like to understand what kind of developments you are considering for the year. So if you could give us a bit of color on those two lines and how they connect to leverage, I would really appreciate that. Thank you. Hi, Lucas. Good morning. This is Moscatelli speaking, and thanks for your questions. Well, leverage, as I mentioned before, we are very much focused on keeping a healthy balance sheet considering our business risk profile. We believe that we are at the right level. But if we are able to reduce that a bit, this also is going to create value to shareholders. So it is something that we are focused on doing. I mentioned we should see stable leverage for the second quarter. I didn't mention that before. As of the third quarter, we should see it going down slightly. So I think it's a downward trend for the second half of the year because assignment of rights and suppliers are probably going to be stable as well. No volatility in leverage because of that. So it is higher profitability, more cash generation, and better car sales. With that, we have more cash, more EBITDA, better results, and therefore we are going to reduce leverage. So this is what we considered in terms of leverage ratios for the end of the year. It is also our priority to reduce leverage as of the second half of the year. Second question about the used cars sales. What kind of demand are you seeing in wholesale? In the beginning of the year, people were a bit encouraged about the level of sales, credits being easier. So in wholesale, how do you see it now compared to the beginning of the year? And even retail. Prices and demand. Hi, Lucas. Used cars demand. We see it quite stable. And this is very positive because the numbers were very good in the first quarter. As I mentioned before, April was even better than the average we mentioned, both in volume and discounts compared to the FIPE Table. So the dynamics are very good. And this is a result of several initiatives that we conducted last year. But also due to a better inventory profile that we have today, cars with a lower price that have more liquidity, more market demand, which contributes us to sell it faster and more easily. So we see no changes, and we are not seeing any change in April. As I mentioned, April was even better, and May is doing quite well. In terms of wholesale retail channels, what I can say is that we have a very similar mix in April and beginning of May and the first quarter, which is 50/50. Healthy profile we want to keep in the coming quarters. And so far, no changes considering the close of April and the beginning of May. Very clear. Have a good day. Our next question comes from Pedro Bruno from XP. Good morning, everyone. Thanks for taking my question. I'd like to go back to the beginning of the call and ask about your commercial strategy. Moscatelli, you talked about increasing prices in the rental car segment, especially starting with Eventual rates, still not with Monthly rates. But you already gave us a bit of a breakdown there. I'd like to also look into different rental car segments and try to understand a few things. First, why you started, you know, with Eventual rates? Why didn't you change everything or adjust everything together? And what kind of affordability are you seeing at the front end? How are you measuring that? And if you again could give us a breakdown. On the one hand, it's very good to see discipline in prices and profitability. On the other hand, we see several players thinking this way. And we have a bit of concern about affordability. So just to try and understand your commercial strategy and the rationale behind it? Hi, Pedro. This is Moscatelli. Thanks for your questions. Our strategy to start with Eventual rates is because it has an immediate reflex on the bottom line. In Monthly rates, you know, negotiations take longer and take longer to show. That's why we started adjusting Eventual rates. Monthly rates have to do a lot with B2B relationship. It's a commercial relationship with companies. So you cannot just, you know, use robots and change prices, you know, overnight as we did in Eventual rates. But the process as a whole and thinking about affordability, Pedro. To us, it has been positive because you've mentioned the competitor is also having this bias of adjusting rates. So if you think of the market as a whole, the dynamic is positive. We all want to increase prices, and we are in a learning by doing process. We are testing the price cap so that we are not going to hurt consumer demand. So far, we increased Eventual rates by 12%, which is a lot. And I see room for that given April that had even better numbers. So I think there's still room to increase prices in Eventual rates. We are going to continue doing so. And Monthly rates, as I mentioned, we did have some increase in April. But I think most of it is going to be captured in May and June. Given the dynamics, the commercial relations with companies, it is a different negotiation with companies than on the website. I don't know if I answered your question, but just let me know. Yes, very clear. Thank you very much. Thank you. That completes our Q&A session today. I'm going to invite Gustavo Moscatelli for his final considerations. Mr. Moscatelli. Well, I would like to start by thanking all our employees, as I mentioned, more than 6,000 people that are here every day focused to make the company better to all stakeholders, not only shareholders, but employees themselves, suppliers, and everyone involved in the company's value chain. What I can say is that we are very happy with the results that we are delivering in the beginning of the year, but not satisfied. There's still a lot to be captured. I see that with excitement because I'm here on the day-to-day with the team working hard to improve the numbers. We do see improvements month after month. I talked about April. April was even better. So there's a lot to be enjoyed. We have delivered a lot, but we haven't enjoyed results fully. There is also a lot going on, as we mentioned in the conference call, that will certainly translate into even better results. My takeaway message is thank employees, the stakeholders, analysts, shareholders, everybody that follows us, and saying that we are happy but still not fully satisfied with results. We are going to seek to deliver even better numbers and see you in the next conference call. Remember, the IR team is always available to answer your questions. Thank you. With that, we close Movida's conference call. Thank you very much for joining and have a good afternoon.