[Foreign language] Nosso webinar, nós vamos iniciar com a apresentação dos resultados. [Foreign language] O pequeno é sim. Earnings. [Foreign language] No final, se puder, reservaremos tempo para perguntas. W e'll have time for Q&A. [Foreign language] Normalmente a gente faz. As we normally do. [Foreign language] Ser bem objetivo aqui nessa apresentação. We'll try to make this very objective. [Foreign language] E nós vamos responder muitas perguntas. Based for questions about. [Foreign language] A reunião pública de resultados está no modelo de webinar. Os participantes têm microfone de. Earnings Webinar, or the participants' questions can be submitted by Q&A on the chat. [Foreign language] Conforme cada desejar. I will open up your mic. [Foreign language] Se a reunião for realizada em português. Meeting is also having simultaneous translation to English. [Foreign language] Sim, sim. Just select this option and also in. [Foreign language] Também a gente vai gravar. Sign language in Portuguese, Filipinos. It's going to be recorded and provided on both languages. [Foreign language] Eu vou compartilhar aqui a apresentação. Company's IR website. [Foreign language] No final, nós abrimos o. So I'll be sharing my presentation and, soon after, we'll open up for Q&A. [Foreign language] Muito bem, então. Então. Os resultados aqui do quarto trimestre de 2024 e do ano de 2024. Let me just pull up the earnings in the first quarter. [Foreign langauge] Então, no ano de 2024, nós fechamos com uma receita para são. For the year of 2024, we had. R$ 1.627.400. Net operational revenue of BRL 1,627,470, which is $475 million. [Foreign langauge] Lucro de R$ 341,519. Os investimentos da plataforma Arara são de R$ 1.431 bilhões For the invoice spending on 12% of the last 12 months, with 10.8%. [Foreign langauge] A dívida também nos últimos 12 meses é 7.4%. E a dívida líquida de Irani. The net debt to EBITDA ratio of 2.26 times. [Foreign langauge] Entrando especificamente nos resultados. Getting into the result in the fourth quarter of 2024. [Foreign langauge] Fechando o quarto trimestre com uma receita. We ended the quarter with an operational net revenue of BRL 424,400. R$ 424.000. And the investments in the Gaia Platform. The investments in the Gaia Platform in the fourth quarter were BRL 19,529. [Foreign langauge] Quando nós entramos em 2024, esse revenue. Como eu falei, fechamos em BRL 424,429. As I mentioned, we had a slight decrease in the revenue in the fourth quarter. [Foreign langauge] Isso é uma realidade, né? Our fourth quarter de seasonality. [Foreign langauge] Tem uma atividade pouco menor. The fourth quarter result is a little less active than the third quarter because of the revenue. [Foreign langauge] Em relação ao quarto trimestre de 2024. The revenue result in the fourth quarter of 2024 had an increase of 10.1% of the revenue year-over-year. [Foreign langauge] E o que a gente fez com isso? The EBITDA ended up at BRL 115,398. 115.398. This number is 7.9% below the third quarter. [Foreign langauge] 3.1% acima. 3.1% above the fourth quarter of 2023, with an EBITDA margin of 27.2% in the quarter. [Foreign langauge] Quando nós olhamos o lucro líquido. When we get into the net income. [Foreign langauge] R$ 115.400. We ended the quarter with BRL 186,103. [Foreign langauge] Desse R$ 186,000. From these BRL 186,000, 17 million. [Foreign langauge] Que é o nosso lucro recorrente. Recurring profit. [Foreign langauge] E o não recorrente. And non-recurring. [Foreign langauge] É a nossa ação de exclusão do ICMS, na base tributária do ICMS. Isso, isso. Que é a nossa ação que transita em julgado. Nós tivemos o reconhecimento aqui de BRL 115,400. We also had the recognition of BRL 116,000. [Foreign langauge] No quarto trimestre. BRL 140,000 in the fourth quarter. [Foreign langauge] E aí, quando nós comparamos o lucro recorrente, né? Em relação ao. When we compare the recurring profit. [Foreign langauge] Quarto trimestre de 2023, nós tivemos uma queda. In the fourth quarter of 2023, we had a drop of 30.4%. [Foreign langauge] Em relação ao total. In regards to total profit, we had an increase of 2,524.1%. [Foreign langauge] Em relação ao terceiro trimestre. In regards to the third quarter, we have a drop here of BRL 20 million, a little less than that. [Foreign langauge] No terceiro trimestre. In regards to the third quarter. In regards to the third quarter. Due to the closing. [Foreign langauge] No último trimestre. In the last quarter. [Foreign langauge] Também pela sazonalidade. Also because of the seasonality. [Foreign langauge] De dezembro. Especially in the month of December. [Foreign langauge] Quando nós olhamos o volume de vendas. When we look at the volume of sales in the fourth quarter. [Foreign langauge] Quando olhamos para o mercado, né? Em papel. We look at the market, paper market. [Foreign langauge] Em papel no Brasil. And for the corrugated market. [Foreign langauge] Tivemos uma elevação de 4.1%. That's with an increase of 4.1% in 2023. [Foreign langauge] E uma queda de sazonalidade. A seasonal drop of 3.4%. [Foreign langauge] Em relação ao quarto trimestre de 2023. Compared to the third quarter of 2024. [Foreign langauge] Tivemos crescimento robusto. This was a robust growth. [Foreign langauge] No quarto trimestre de 2023. In regards to the fourth quarter of 2023, it was 4.1%. [Foreign langauge] Em relação ao quarto trimestre. And when we look at parameters a little bit greater 4.7% and a drop of 2.7% in regards to the third quarter of 2023. [Foreign langauge] Nós tivemos. So, in our case, we had, in regards to the fourth quarter. [Foreign langauge] Uma queda menor do que o mercado. We had lower growth in the market. [Foreign langauge] Em relação ao quarto trimestre. This is mainly due to. [Foreign langauge] Os preços, que nós vamos falar pouquinho mais adiante. The price. [Foreign langauge] E que leva a alguma queda de preço. And this is just ahead of that. [Foreign langauge] Em relação ao quarto trimestre. Há uma sazonalidade em relação à sazonalidade anunciada pelo mercado. It's a little more significant. Em relação ao preço do mercado. In regards to the third quarter. [Foreign langauge] Em relação ao preço do mercado. We had a drop of 3.8%. [Foreign langauge] Quando nós olhamos em metros quadrados, nós tivemos uma elevação de 0.4%. And we had com [Foreign langauge] 88 milhões de metros. 0.4% with. [Foreign langauge] Em 3.7% alta. 3.7% below the third quarter. [Foreign langauge] Dessa sazonalidade que nós. Due to the seasonality in the quarter trimester. [Foreign langauge] Em relação aos preços médios. So when we talk. Take a look at the average price movement, which is very important information. [Foreign langauge] Nós tivemos uma elevação em relação ao quarto trimestre. We had an increase in regards to the fourth quarter of 2023. [Foreign langauge] Em relação ao quarto trimestre. In 7.9%. In regards to the third quarter. The average price movement in the quarter. [Foreign langauge] No quarto trimestre. We had an [Foreign langauge] Elevação de 5.5%. Had an increase of 5.5%. M ost of these price increases in the year took place in the last quarter. And so. It's a growing increase. [Foreign langauge] Incremento no início do quarto trimestre. When we consider the prices ever since the first of the fourth quarter. [Foreign langauge] Em 6.5%. Which made the prices on average go up 5.5%. [Foreign langauge] Quando nós olhamos volume. When we look at the volume. [Foreign langauge] De vendas de papel agora. We had the paper for packaging. [Foreign langauge] Papel que nós vendemos para o mercado. And the paper sold to sell. [Foreign langauge] Uma elevação das vendas que a gente teve em 2023. Compared to the fourth quarter of 2023. [Foreign langauge] Uma queda sazonal de 10.9%. A seasonal drop of 10.9%. [Foreign langauge] No quarto trimestre de 2024. Compared to the third quarter of 2024. [Foreign langauge] Em 3.850. We sold 23.852 tons of Flexible Packaging. [Foreign langauge] Em 5.050. Embalsagens rígidas. Em 5.050. 5,600 paper for rigid packaging. [Foreign langauge] Em papéis para embalagens rígidas. Also, papers for Rigid Packaging, which has only sold. [Foreign langauge] Uma venda pequena, porque a maior parte do. Corrugated cardboard. So this false sale because most of the volumes for these papers are transitional. [Foreign langauge] Em termos de tamanho médio. Packaging units. So the average price of the papers for bags. [Foreign langauge] No terceiro e quarto trimestre. Had an increase. [Foreign langauge] No ano. No quarto trimestre em relação ao quarto trimestre, uma elevação de 4.5%. We have this increase. [Foreign langauge] Em relação ao quarto trimestre. Of 4.8%. [Foreign langauge] Em relação ao quarto trimestre de 2023. Increase of 7.5%. Increase of 7.5%. Here you have the average market. [Foreign langauge] E feito do dólar pouco mais alto no quarto trimestre. Which is a little higher than the. [Foreign langauge] Em relação aos preços que se iniciaram. First quarter and also some price increases that took place in the month of December for some papers. When we look at the papers. [Foreign langauge] Nós tivemos uma elevação de 13% no terceiro trimestre. We had an increase of 14.9%. [Foreign langauge] Por conta justamente do aumento das aparas na sequência. Scraps for the year ahead. [Foreign langauge] Que impactam muito os papéis. Which really impact the papers for corrugated cardboard. [Foreign langauge] Quando nós olhamos as aparas, elas tiveram uma elevação de 4.3%. We had an increase of 82.5%. [Foreign langauge] O desafio desse ano foi o seguinte. So the challenge this year was. [Foreign langauge] A reposição dessa empresa. Reposition the cost inflation we've had with. [Foreign langauge] E uma queda. Increase of the price of scraps and a drop of 0.4%. [Foreign langauge] No terceiro e quarto trimestres. In the third and fourth quarters. In the third and fourth quarters. Here we're taking a look at the market as a whole with the data that. [Foreign langauge] No caso da Irani Papel e Embalagem S.A. And then when it comes to Irani Papel, we had an increase a little lower, 73.1%. [Foreign langauge] E uma elevação em relação ao terceiro trimestre. An increase compared to the third quarter of 0.8%. [Foreign langauge] Em relação ao terceiro trimestre. We had a ton of FOB. [Foreign langauge] Resinas, nós tivemos volume de vendas de. Sensing losses. We had a volume of sales that was 31% higher. [Foreign langauge] Maior que o quarto trimestre. 24.6% higher. [Foreign langauge] E os preços também em elevação. And also prices. [Foreign langauge] Por conta do dólar mais alto e também. Also because of the higher dollar increases of the prices. [Foreign langauge] Que é dos produtos do processo. Which are one of the products involved. [Foreign langauge] Que é o breu e a trementina, que são pouco do. That is involved in turpentine. Production. [Foreign langauge] Então aqui então faz-se a elevação de preços. We ended with this price increase in the previous quarter. [Foreign langauge] Encerramos o ano no quarto trimestre de 2023. We started the year with a more favorable condition than what it looks like during 2024. [Foreign langauge] Quando nós olhamos os números de 2024, os números fechados no ano. When we look at the closed numbers. [Foreign langauge] Uma elevação da receita em 2023. We had an increase in the revenue. [Foreign langauge] Em relação ao terceiro trimestre. Inversamente. Em relação ao terceiro trimestre. For 1%. [Foreign langauge] Em relação ao quarto trimestre. Em termos de IDAR. Uma queda de 3%. Em relação ao terceiro trimestre. Impactada fortemente pelo aumento de custos e de aparas. Which may impact the pricing increase. [Foreign langauge] Em relação às margens. Em uma elevação de 3%. Em relação à margem. An EBITDA margin of 22.9%. On the margins. [Foreign langauge] Em relação à margem. Que nós tivemos em 2023. Below the margins we had in 2023, mainly because. [Foreign langauge] Do aumento das aparas. Of the increase in the scraps. [Foreign langauge] Mais composição de preços. Also the third quarter. Reestablishment of the prices. Replacement of the last quarter of the year and in net income we had no ano de 2023. [Foreign langauge] BRL 168,268. São não recorrentes. R$ 168.000. [Foreign langauge] Inclusão desse EBITDA para a baixa. That's due to the exclusion of the estimates in the tax base. [Foreign langauge] Que tivemos em 2023. And this was. [Foreign langauge] E tivemos o. In the judgment of the last quarter. We had a recurring BRL 36 million. Profits. [Foreign langauge] R$ 150.000. And 3.44. [Foreign langauge] Principalmente do. A dormant ERR. [Foreign langauge] Aumento ao longo do ano. And the scrap price. The price adjustments took place only in the last two quarters. [Foreign langauge] Muito bem. So now we have this drop of 20.6%. [Foreign langauge] Em relação ao custo. E também. And also. [Foreign langauge] Do crédito de PIS/COFINS. E PIS/COFINS, que era evidente que não havia mais custo. This is well known in. Where we also had this recognizing change. [Foreign langauge] E também nós tivemos aqui em. We also had some impairments of 18. [Foreign langauge] Que não se repetiram. the closing. Which did not repeat themselves in the closing of 2024. [Foreign langauge] Quando nós olhamos aqui volume de vendas. When we take a look at the volume of sales in total. [Foreign langauge] O volume de papel teve uma elevação. In the whole market and paper, there was an increase of 4.8%. The market grew a lot when it comes to volume of sales. [Foreign langauge] Vigoroso crescimento. It was real vigorous growth throughout the entire quarter. [Foreign langauge] Toneladas como em metros quadrados. In the whole quarter. [Foreign langauge] E no nosso caso nós tivemos. In our case we had an increase. [Foreign langauge] Em relação ao mercado em toneladas. That was higher than the market. In the whole quarter. In line with the market as well. [Foreign langauge] Em termos de preços médios. When it comes to square meters. [Foreign langauge] Nós tivemos uma queda. About average prices. We had a drop of 2.8%. [Foreign langauge] Preço médio. The price change in the average price. Average price increased. We can see the average price below. [Foreign langauge] Então muito mais próximo do preço médio. Do preço médio do quarto trimestre. Do quarto trimestre. To the average price in the fourth quarter. [Foreign langauge] E 2.3%. And 2.3% below. [Foreign langauge] Em metros quadrados. As vendas totais de papéis para embalagem. In the quarter of 2023. [Foreign langauge] Fecharam em 4,323 toneladas. Just 124,000. [Foreign langauge] A mais do que foi no período de três meses. Em quatro semanas. Nós tivemos uma venda de papéis para embalagem flexível. We sell off. [Foreign langauge] Quase 4,000 toneladas a mais do que nós tínhamos no ano passado. In almost 4,000 tons. [Foreign langauge] Que leva a outro crescimento exponencial. E a própria reforma da embalagem flexível. Nós tivemos como dentro da plataforma da Irani Papel. Uma elevação de nossas vendas. All of this has increased our sales of paper for papel commercial. Packaging, which is the paper we sell. [Foreign langauge] Papéis industriais. Industriais. Industrials. [Foreign langauge] E as vendas para papéis para embalagem flexível. And paper for paper flexible. [Foreign langauge] Nós fechamos aqui em linha com 2023. Packaging in 2023. [Foreign langauge] Em preços médios das embalagens flexíveis. The average prices of the flexible packaging. [Foreign langauge] Levemente abaixo. And a little below. In 2023. [Foreign langauge] Os preços tiveram uma. In the lines in this area was a significant increase in the fourth quarter. [Foreign langauge] Em relação ao dólar. Increase to the dollar. [Foreign langauge] Em relação ao dólar. [Foreign langauge] Em relação ao preço. Em relação ao preço. Principalmente nos papéis. Especially. [Foreign langauge] Para embalagens flexíveis. Some price increases in the quarter. [Foreign langauge] Teve uma queda aqui de 1.2% em relação ao ano de 2023. Packaging. [Foreign langauge] Volume de vendas de resinas. We didn't see sales volume exactly. [Foreign langauge] No ano passado. In 2023. Increase of 2.8%. Increase of 2.8%. A 2,000 tons. Increase of 2.9% below and the average price. [Foreign langauge] No ano de 2023. Queda de preços em dólar. We saw a drop. [Foreign langauge] Uma recuperação mais ao final do ano, então teve uma queda. The price to the dollar and a slight recovery so there was a drop of the average price against the average price. [Foreign langauge] Quando nós olhamos a nossa divisão. When we look at the total debt level, we ended the year at 3.680. 3.680. [Foreign langauge] Em dívida total. Com saldo de caixa de BRL 642. [Foreign langauge] We have a dívida líquida de BRL 1,076,000. A dívida líquida de BRL 633. Essa dívida 98% da moeda nacional e 87% estrangeira. 89% da dívida nacional. Em relação ao preço de. Em relação ao preço de. Com uma alavancagem de 2.6%. With a leverage ratio of 2.26. [Foreign langauge] Aqui nós estamos próximos do pico de alavancagem. We are close to the peak of alavancagem. [Foreign langauge] Ao longo de 2024. We had the. [Foreign langauge] E o custo médio dessa dívida de 11.2%. We have a price increase of 11.2% a year in 2024. [Foreign langauge] Quando nós olhamos o nosso ROIC. We got the CER of 11.8%. We reached 10.8%. [Foreign langauge] Houve uma queda exponencial. We had a significant drop in our ROIC over the Gaia platform. Gaia platform investments. We still. [Foreign langauge] Tivemos o aumento do endividamento. We had, at the end, to do. [Foreign langauge] O retorno da plataforma. So we had an increase in the debt level, but we didn't get the full return. As the Irani Papel starts recovering. In 2024. We had 2024 and already captured the price increases we had in the last quarter. In terms of the additional gains we had. In the entire platform. We should be able to have this inversion in the cost in this current year of 2024. Our cost of debt. In the last 12 months after income tax is at 7.4%. Now we have our Buyback Program that is still active and it's been. A strategic definition for the company. To buy back its stock. Excellent investment. We continue to be an excellent asset since our. [Foreign langauge] Nós entendemos que ficou bem abaixo. We consider way below the value. The company's intrinsic value and the expectations for results in the next months and years. We also distributed this year 126.04%. Dividends. Dividends in the last quarter of the year. In the last quarter of the year. Was 9.500. 0.0430. In 0.0330. [Foreign langauge] E no ano 0.52. And the year 14,281. [Foreign langauge] Com dividend yield de 4.82%. Dividend yield of 4.82%. [Foreign langauge] Com dividend yield de 10.32%. Value of 12.12%. Investments. [Foreign langauge] Da plataforma da Irani Papel. Investments. In the Gaia Platform. Investments. All. [Foreign langauge] Estão bem encaminhados. Então os Gaia 1, 2 e 3 são os principais projetos que estão em curva de performance. They are all very performing. [Foreign langauge] E já capturando os retornos da plataforma. We've already captured some return. From the Gaia platform, the Gaia 4 and 5 are the projects. [Foreign langauge] São os PCHs que nós ainda estamos buscando. PCHs. PCHs. [Foreign langauge] Que estão bem mais do que nós imaginávamos. We've been working on getting the licenses for it. It took a little longer than what we imagined, but we should have at least one of these restarted in 2024. Sorry, in 2025. In 2026. Gaia 6, 7, 8, 9, 10. Gaia 6, 7, 8, 9, 10. Which is the new business of resin that's in the final. It's already in final phase. [Foreign langauge] E começa a operar. It will start operating. [Foreign langauge] Provavelmente a partir de maio desse ano, quando nós completemos os equipamentos periféricos. In May this year when we have the. [Foreign langauge] Já instalados. Additional equipment installed. The machine itself is already working and we have the pre-feeder and dryers that's also part of this operation, and that should be installed for the month of May. It's already planned and prepared for the end of this year. We don't have the precise date yet, but the machine is completely planned and all the equipment is being acquired as well to be able to refurbish this during the shutdown at the end of 2025 and the beginning of 2026. In 2026. And this quarter we had, for the first time, we started delivering the efficient carbon index for B3, ICO2, and we're really proud of this with the decarbonization process the company's been working on throughout many, many years. And we've also been recognized as the fourth best industry to work at in Brazil, according to GPTW of Brazil for industries. And we've also been recognized by the house representatives in Santa Catarina when it comes to industries of considered. [Foreign langauge] E o nosso pessoal. And our team in the. In relation to investor. Investor Relations area that are always available to help. In relation to investors. Passing on. Shareholders. Sharing more information on our results and clarifying any other questions that may arise or supplying any kind of information that could be necessary. O divã. To our analysts as well. So we have our Odivan, who's our CFO. Our Director of Finance. And our Investor Relations manager. And the analysts are also leading the Investor Relations area. [Foreign langauge] E a Daniela Amorim. Maurício Piani introduce a Daniela Amorim. We've had the financial area. With Manuel. Specialists. Our financial specialists in the accounting front. [Foreign langauge] E o Wanderson Zavotti. And Wanderson Zavotti and Alexandre. [Foreign langauge] E a Giovanna, que é a nossa analista de novos negócios. Giovanna is also our new business analyst supporting us during this process. [Foreign langauge] Muito bem. Então essas são as informações aí que eu gostaria de passar para vocês. Some of the information we wanted to share with you today. [Foreign langauge] E agora nós nos encontramos. And now we can hop in. To the Q&A session and answer any questions you may have. [Foreign langauge] Obrigado. Thank you so much. Great. [Foreign langauge] Boa tarde a todos. Então. Grazie a tutti. Vamos passar aqui para a sessão de Q&A. Cover the Q&A session now. [Foreign langauge] A gente já poderia colocar aqui todos os diretores. Okay. [Foreign langauge] Vamos lá. Aqui na telinha, né? Vamos já passar aqui então para a primeira pergunta que a gente recebeu do Stefan. First question we received from Stefan at Citibank. Thank you, Stefan. Yes, still so far. Should we imagine that the scrap prices continue in the first quarter of 2025? The price of scrap kept stable during the beginning of the year, but do you still imagine some setback during the year or some growth? And then also about the Neos project and if there's any updates you could share ever since the last Q&A session and the last quarter. Well, in corrugated cardboard, Stefan, we had an important price adjustment in the last quarter, which already appeared in the results. On this increase still. Has a bit in this beginning of the year with the negotiations made in the third quarter. That should impact prices in the first quarter. And we'll then have this movement to recover prices, especially in the second quarter this year. Or at most in the third quarter. In the 2024. Establishing inflation in 2024. [Foreign langauge] Aí que tem para repor de aumento de aparas. That's the scrap. And all the rest with the increases in the scrap. So they started the year of 2025. [Foreign langauge] Com alguma pressão. Relatively stable with a bit of pressure due to pricing in the last month. The market was pretty heated. The month of January was also very good. That seems to be very positive in the month of March. Also has a pretty good portfolio coming along, and that ensures the chance of really reestablishing the margins ever since the beginning of the second quarter in 2025. So. Should move around with the price increases in the next months. This is going to be extended for a few months. We have contracts that are established and then we have to wait or honor in bigger accounts. So the price adjustments take place during a period until the next few quarters. But we're super excited with the beginning of the year because the volumes continue to be very strong. The month of January had an increase of 1% compared to January last year that was disclosed by Empapel. But I want to remind you that the first quarter of last year was also very strong. So we've already had a first quarter that's always already been very strong and we're starting 2025 with growth compared to the same period last year. Our expectation is that despite the monetary restrictions of such high interest rates we've seen, that the market is super dynamic and maybe even allowing for price transfers and adjustments in the next few months. About the scraps, they continue to be pressured, which is a point we didn't imagine for the beginning of this year. Typically, the year has some drop in scrap prices and that demonstrates the market's pretty heated, which is why we have pressure on the scraps in the beginning of this year. We don't imagine this will be that strong, but we haven't seen any drops of scraps so far, any kind of drops in scrap prices as we had imagined for doing this in the beginning of the year. About the Neos platform, which was the last question, we're at the designing phase and engineering of the main project. And so as soon as we have this well-defined pricing and schedule, we'll be able to disclose this to the market. But at this moment, we're still in the studying and engineering phases of the project. Perfect. So we have Marcelo Arazi, he raised his hand. So we'll open up his mic. Hey, everyone. Hi, guys. How's it going? Two points to get into. I just want to talk about the expectation for the year. We see that the paper had a slight slowdown in December with data in January, a little better. We also had some news on the newspaper today by Valor Econômico saying that there should be a moderate optimistic vision for the year, and I want to understand your guys' perspective. And then secondly, I want to know if there's any other initiatives from your guys' side that could maybe accelerate the deleveraging that the company expects to achieve this year and how this could maybe affect the speed of your buyback program as well. [Foreign langauge] Então vamos lá. A questão da demanda. The issue with the demand, as I mentioned. We're really excited because we had some projections and forecasts by analysts from Rabobank and their positive perspectives with growth really strong. Above 3%-4%. We have some segments that are doing super well. One of them is the cold cuts. He's a big protein expert and he has a lot of exposure to this. He's been really close to that cluster of companies that are close to the meats. Slaughterhouses like Seara, Aurora, Frimesa, and others, which have demand that's really strong for exports, and so that brings us great expectations for volumes in this segment. The market overall, they have gone up by the inflation being higher than what we would like it to be in interest rates also. We haven't seen so far any kind of slowdown in the demand, especially now for the food sector. It's a sector that really depends on income levels and employment levels, which is what we're seeing as a whole. So we're really optimistic with what we're seeing so far. Of course, there could be some kind of a slowdown in the second quarter, the second half, sorry, but we still haven't seen this slowdown. And our expectations are that the segments we're most exposed to will have a very favorable dynamic throughout the year. And then about pricing, what we've already mentioned previously, we're also asked the demand to get stronger and stronger capacities also occupied and natural that we reestablish the inflation period. And what's the other point? [Foreign langauge] A questão do programa de compra, né? The buyback program. [Foreign langauge] A questão dessa alavancagem que você mencionou. The issue with the deleveraging. [Foreign langauge] A gente está bastante otimista com relação a esse dynamics in terms of the results. They already can be translated into best margins for the next quarter in terms of the carryover effect of the price increases and also the expectation for new price increases in the next month. Our results are going to be higher and better than what they were in 2024, and that's why the deleveraging process happens naturally. Edgar also raised his hand. Bom dia, pessoal. Hi, guys. Good morning. [Foreign langauge] Tudo bem? Tudo bem. Tem duas perguntas. Uma, na verdade. We've got two questions here. One is a follow-up of the previous question on scraps. I think that we want to understand some points related to. We saw there in the middle of last year that the price of scrap almost doubling with a more limited dynamic in the supply. The floods in the state of Rio Grande do Sul were severe, of course. This price has kept really high ever since we had a kind of seasonality period, and then that has been surprising. But would you consider this a higher price? [Foreign langauge] Ou ainda tem uma questão de oferta que não é normalizada? Possibly some kind of a reduction in the price of scrap. [Foreign langauge] Pessoal, a gente viu que o desconto de vocês já parou e abriu gap. For the E.U., for the paper sector of scrap versus the kraft. [Foreign langauge] Se a gente olhar os dados consolidados, o quarto ano em 2023 versus 2024. O preço já para na base de. The price of the scraps to the FOB basis that were really close to cost. [Foreign langauge] O ano passado fechou ali com uma diferença de quase BRL 100. Close that with a difference of almost BRL 100. [Foreign langauge] BRL 100 por tonelada. Como que isso deve impactar o preço de vocês em relação a para, né? Pode ser. Does this impact your cost, right? [Foreign langauge] Ou pode ter alguma questão ainda. Is this any kind of stability up ahead or pressure to scrap that? [Foreign langauge] E aí minha segunda pergunta, pessoal, é isso aqui no segmento de papel. And then, about the segments. [Foreign langauge] Como que vocês estão vendo a evolução de volumes? How do you imagine the volume evolution? What do you expect for this year? Is there something to be still at the carryover? The entire platform. Share of the paper possible, or seeing a little bit of dynamics in the market? Of course, depends on market dynamics, but how do you expect growth for this segment this year and the growth of magnitude, etc.? That would be great. Thank you. [Foreign langauge] Sobre as aparas, elas entraram mais com aumento nesse início do ano with a bit of pressure for increases in the next year, but this price difference on average compared to what we've seen because the price transfer doesn't happen in the same way. And we also have a loyalty relationship with our suppliers that's really important to us, and that kind of soft increases in the market happen rapidly. So it doesn't go as much as the market, and it also drops in the same speed because of the partnerships we have with our suppliers and the difference in the increase in the prices takes place. But the trend is that it should be close to the OCC number. While in terms of pricing, the scraps market is a closed circuit, right? So you have very few exports and variations in demand that lead to pressure for the pricing and this drop in demand. Right, for getting these scraps to drop. And so we have nothing reasonable for the scraps to continue to go up. So we have a virgin fiber paper, two new machines that were added to the scraps liner exports are not going up at the same speed. So that means that you have an insertion of virgin fiber paper in the system that are very significant. I suggest no increase in scraps and even a drop at some moment in the year. And I think the pressure comes due to the rains and holidays. Well, the end of the year. We at our competitors have a stock of scraps for a few days that's not that big, but that pressures prices when you have a delivery holidays or even days where you don't have this. That pressures prices a little bit. We understood that due to a lot of scraps in the capital, we have an average term of about 10 days to keep the optimal level in the scraps for our operations. So I don't see the scraps getting any more questions from the competitors. We have information from some competitors that are. We can't hear his audio at the moment. Hello, hello. [Foreign langauge] Então, se o mercado está pelo lado, continua nessa dinâmica como está previsto. The market continues in this dynamic in the market of scraps. The market, on the other hand, I don't see the market moving towards price increases and margin increases, and that, of course, leading to a very positive year for the company. So then the other point was about, yeah, Edgar and. [Foreign langauge] Sobre o mercado de papéis. And about the paper market. [Foreign langauge] Sobre o mercado de papéis. Ele está começando a se formar. Vai ser uma recuperação da gente. Papers market. [Foreign langauge] Acho que a boa notícia é a Argentina que voltou para o circuito. A Argentina apartou do circuito. E aí, não sei se tem o quarto tri mais ainda. Então, isso vai ajudar a dinâmica desse mercado. Claro que ainda tem. How could the market dynamic of course still happen? Situation in the U.K., the exports. [Foreign langauge] Consequentemente, o que é vendido aqui no Brasil. Mas eu acredito numa recuperação gradativa. I believe it's still going to be gradual. [Foreign langauge] Mesmo a meses desse mercado. Month after month. [Foreign langauge] Bem tímida. Não vai ser uma curva assim, mas vai ser uma curva leve. It's going to be a slight curve upwards. [Foreign langauge] Fala pouquinho, lindo. Sobre o mercado de embalagens. The paper, the packaging market and this dynamic. I think it would be great to get your opinion too. [Foreign langauge] Puxa, ele é muito animado. I don't want to be too repetitive, but it's really in line with the recomposition and to be very determined and focused and definitely due to the demand we have and also the question of inflation. Also the question of the cost of the paper. And also the inflation. Also the reestablishment of the scraps and inflation accumulated during the period. We're really optimistic that. Believe that things will happen in the second quarter. [Foreign langauge] Agora eu fiquei feliz aqui. Yeah. [Foreign langauge] Obrigado, pessoal. Só follow-up, Sérgio. So follow-up. [Foreign langauge] Eu não queria dizer alguma coisa nessa parte de aparas que cortou pouquinho no final. Odivan, lógico, tem as dinâmicas de mercado, mas tudo isso é mais detalhado. Mas poderia haver alguma questão específica para vocês para chegar ali mais próximo dos preços de vocês que estão mais adequados? Is it scraps? Oh, yeah, that could be it, but I want to remind you that in the South we have scraps prices that are a little lower, so maybe if you look historically, our prices are slightly below on Gucci. [Foreign langauge] Perfeito. Obrigado, pessoal. Yeah, perfect, guys. Thanks. [Foreign langauge] Temos várias das perguntas aqui. Vamos passar aqui para o Guilherme Nippes. Now we're going to Guilherme Nippes for my screen. No chat. And. [Foreign langauge] Tem várias perguntas aqui. Tem cinco. We have many questions. [Foreign langauge] Demanda para o lado e o vínculo de dinâmica de demanda para o lado de cartão ondulado. I wanted to hear a bit about this dynamic. [Foreign langauge] Você também está interessado em conhecer o risco de. You were picking that because I still want to hear about 2025. [Foreign langauge] Vou ler todas elas. So I'll read all of them. [Foreign langauge] Vimos sobre a eventualidade de taxas de preço. We also considered some possible price drops last month. [Foreign langauge] Vimos o inventário, como estão vendo. For corrugated board, and I wanted to understand what the dynamic is like for 2025. The third one is cost. We had great performance in our costs throughout the last quarter, and although we've seen a bit of price pressure on the scraps, could you tell us what you guys expect for the next quarter and do you expect possible conversions that could maybe benefit from this cost effect? And also could you give me an update on. [Foreign langauge] Sobre o cronograma e anúncio do projeto. Schedule for now. [Foreign langauge] E a última quinta oferta de demanda sobre a questão de demanda de. What the environment is like. For the supply. And the balance. What you guys are expecting in the market? With the new projects entering the market. [Foreign langauge] Vamos falar pouquinho de cada uma delas. Could you maybe go over the three ones? [Foreign langauge] Eu posso ler de novo aqui, Sérgio, para. And I can also read the second. And how. The demand for corrugated board. The first one is about demand for cardboard price and cost. Oh, I think that's something we've already discussed, that these demands are good. [Foreign langauge] Fizemos uma recuperação importante. And we've had an important decomposition last quarter. And our expectation of the environment trend is to have recomposition and reestablishment in the second quarter for the price adjustments. And then also the other question about the demand platform and supply and demand market. [Foreign langauge] Nós tivemos aumento de capacidade de mercado. Oh, yeah, we had an increase in our capacity of significant upgrades. [Foreign langauge] De piraticada e de. For more of our competitors. [Foreign langauge] Como uma oferta grande de capacidade. Mas esse ano nós não estamos vendo nenhuma. Nenhuma concorrente se movimentando. Any of our competitors moving towards adding capacity? So this is great news. [Foreign langauge] Capacidades relevantes já foram adicionadas. We saw relevant capacities that have already been added. With the market growing by 3%. [Foreign langauge] Essas novas capacidades elas são exibidas com relativa tranquilidade. Our absorbs with. [Foreign langauge] Sem grandes pressões sobre os preços no mercado como um todo. No big pressures in the market as a whole. [Foreign langauge] Guilherme, se caso não tiver com todos os seus pontos aí, por favor. If you haven't covered the points, please hop in and feel free to come back to us and we'll reinforce them. [Foreign langauge] Enquanto vão passando aqui as outras. Angelo. Okay, so while we go over the next point. [Foreign langauge] Boa tarde, parabéns pelos resultados. O aumento de preços. Congratulations on the results. Increase of the prices for packaging. [Foreign langauge] Gente para repor o aumento total das aparas. Also think. An increase of continuity. We think that this price increase would already be enough to reestablish this. The other questions about the scraps are very important. I believe if the market stabilizes. We also consider a scenario with greater consumption. [Foreign langauge] Eu acho que nós cobrimos todos os pontos, né? We've covered all these points already. We think that recovery in one of the recycling operations that could maybe cause a bit of pressure in the short term. But nothing that would really represent an imbalance in the overall system. At this moment, with this inclusion of virgin fiber, I don't think we'll have major pressure. We have some moments in the market where you have this new capacity coming in for kraft paper when we have a longer holiday. And maybe we have a bit of pressure in the market, but we haven't seen ongoing pressure for an increase in scrap prices in the beginning of the year. Maybe a little pressure, but nothing too relevant, which suggests stability in this market for the next few months. Tudo bem. Só deixa eu ver se foi coberto tudo aqui. Let me just double-check if we covered everything here. The next question is from Daniel Gewehr. [Foreign langauge] Senhor Dan G, obrigado. Dan G. [Foreign langauge] Tem três perguntas aqui. A primeira. Taking my question as three points. First, does the price in the market go up a little bit? And the adjusted negative? [Foreign langauge] Espero que este ano a companhia consiga reforçar a sua capacidade de cobrir o aumento de adjusted prices. Have compatibility with the price increase. With the cost increases, could you give us a perspective on the price range this year? And also how much is the entire platform actually going to positively impact EBITDA? Considering your investments have already been completed. And the third point is considering a volatile market. Wouldn't it be more interesting to have the buybacks and reduce the buybacks and focus on the deleveraging, allowing shareholders to define the best moment to determine their share in the company? The first point about the price of revenues going up a little bit and the adjusted income goes down because of the cost adjustments. The perspective is what's the capacity to transfer inflation to these costs? I think an important point here is if we analyze this sector of corrugated cardboard, it can always consider the inflation, which where you could maybe have a bit of a delay in regards to the moment where the scraps go up and the price transfers take place. But you could always transfer prices with a little slight delay or greater delay depending on the market context. So this price transfer in the second and third quarter was enough to cover part of the inflation that we had with cost inflation that was very significant throughout the year. And so that's why we're moving towards reestablishing or recovering our price ranges in the second quarter, expecting this movement to be able to reestablish the inflation in 2024 and also part of the inflation that was not transferred yet. And with this, of course, we're going to impact the result, the buyback program. Do you want to talk about this, Sérgio? Yeah, the first point here. I think it's important to see the price variations from the fourth quarter and the fourth quarter last year. When you compare this annually, you can see there was a drop in prices in the average in the year. You can see that from one point to the other. You can see this narrow change. There's a different trend. It goes from the low and you start capturing the prices in the second quarter, and that is transferred to 2025. So we already start 2025 with a better price perspective than what we had in 2024. Now. [Foreign langauge] A terceira pergunta fala sobre. The question is about deleveraging, company dividends and buybacks, so for dividends. Could you? The question was, could we increase the dividends? Well, there's a policy that's already predefined by the board. And we have a payout of 50% of the net income if it's leveraged in that 2.5 times. Then we don't have a provision or a reason to modify this policy at the moment. And we have no plans to increase dividends, so the policy must be kept throughout 2025. We'll continue to distribute 25% every quarter, and at the end of the year, if the leverage is below 2.5 times, we'll distribute another 25%, completing the 50% payout and retaining 50% of profits for reinvesting in the company. And the buyback program is really a capital allocation decision. So we do, of course, keep an eye on our leverage always and our debt position, but we don't have that many significant payments that will impact the leverage situation. We've been working on the buyback program, and we understand that the conditions allow for such and in a way where we can actually generate value to all shareholders, which is the goal at the end of the day of this buyback program. Then I think the second question was about the entire platform and what's the positive impact on the EBITDA that's still captured from these investments that have already been completed. A lot was captured already, and that helped with the company's results last year. Despite all of the price increases and scraps, we had an EBITDA that was very close to 24%. Of course, that's not the ideal, but it did kind of compensate part of the cost increases we had last year. This year, with the price reestablishments, we can notice this difference in a very significant manner. So from all of the different return lines, what was not captured yet and that relies on the market still is the line where we have an improvement in the mix of papers and fibers on machine one, which is where you have paper for industrial bags, and the market has really become more difficult. It's been more challenging in the past few years because most of the time we're talking about exports, and a lot of this used to go to Argentina, so that kind of hindered the market for this kind of paper. And in this case, we end up being hindered indirectly, although we don't sell to the cement segment. Since the cement segment is not doing well, they end up adding papers to other segments we're participating in, so it really depends on this internal market dynamic. First, the exports need to get better because of Argentina's recovery, and it's already happening, and secondly, because of the dynamic for the cement market in Brazil, that indirectly leads to an improvement in the consumption of paper for industrial bags, and based on this return line, we still haven't captured all of the returns in the Gaia Platform, so Gaia two considers the increase of capacity in the unit in Santa Catarina, and that's already been captured. Gaia three is the refurbishing of machine two, where we were able to offer performance that's even better than what we expected, and the others are smaller projects that are all performing very well. For the Gaia Platform, I would say that it's an important line that we still haven't captured, which is the improvement in the mix of paper for machine one. All of this will lead to an increase in margins substantially in our sales. And then finally, also energy, right? Power, because there's a moment where the value was really low in the market, and then we ended up not capturing all of the expected returns. We do capture a bit of the returns, but not at the same level as the market prices. Well, Angelo Navas also asked about the platform cycle, but I think that was already answered. And if you have any other questions, Angelo, you can add that to the chat. And we have a question from Shin. How's it going? Good morning, everyone. Congrats on the results. Could you tell us about the Argentine market and the bags market? I think he covered this a bit. How's it going? Yeah, so. Okay. Hi, Shin. How's it going? Well, Argentina has been going through a full recovery process ever since Milei took over the government in the first semester. Prices went up gradually and the payment flows also. But now, in the second semester, we're going back to levels that are almost what we were working on. So maybe a little more to add, but the fourth quarter was great for exports in Argentina and the perspective for 2025 is that we will have a year that's better than 2024, not only for us, but the overall market, because it also helped us to recover the returns that we're missing from Q1. This contribution from Argentina in 2025 will help with the recovery in the Gaia platform as well. Great. So our next one here from Edgar. [Foreign langauge] Obrigado, pessoal. Just one last point here. Since we got into the issue with dividends, I think the company has been historically distributing high levels of dividends and doing good buybacks for shareholders, bringing a lot of returns to shareholders. So one point we had questions considering institutional investors about if maybe it would make sense to have a dividend policy that is a little more connected to the operational generation. I think your guys' policy today is based on the net income, and maybe that considers some non-recurring factors such as repurposing and value of biological assets, depreciation, or even some other decisions like legal decisions that affected the company. So I think this is more of a point I wanted to provoke you guys with. Do you guys consider this discussion maybe of having a modification of the dividends policy to maybe have this due to the operational performance of the EBITDA instead of being a net income issue that is affected by the non-recurring factors? If I can get that one. Great. I can start. About this issue, the non-recurring events, there's also a result of the operation itself. They're not events that took place in the operation, and it's always the sense of these moments, the opportunity to pay off the dividends, and that's always done together with our board, but since we have a liquidity position that is good and we don't have investments expected in the short term, then we understand that compensating investors as established by our policy really makes sense, and normally, when this recognition or this acknowledgment takes place sporadically, they normally have a complete connection between the distribution of dividends and the operational performance of the company, well, we know other companies in the sector also do this, but in our interpretation, you wouldn't really have to modify what's already in the law. What needs to be distributed is the percentage of the net income. This is really connected to our cash situation. When you have a gain, for example, that can be converted into cash quickly. We have no reason to see a dividend payout that is different than the typical scenario in the market as a whole. The actual evaluation of the biological assets, right, where you have this drop in the exhaustion cost, and it's also non-cash, and that kind of offsets each other. From the net income, there's not a non-cash net income that could justify the dividend payout, right? That's why we don't use this payout as a percentage of the EBITDA. We also don't have anything in this line in regards to the operation of the payout because of this. Okay, perfect. Sounds very clear. That impacts you guys a lot less than other companies. [Foreign langauge] Perfeito. Super claro. Obrigado, Sérgio. Thank you, Sérgio. [Foreign langauge] Obrigado. [Foreign langauge] Temos mais duas perguntas aqui do Bruno Oliveira. Two more questions. [Foreign langauge] Bruno Oliveira. [Foreign langauge] A primeira: vemos uma redução desde o primeiro trimestre de 2022. We saw a reduction in our funds the first quarter of 2022, between the growth and the cost of capital in the company, and I understand. [Foreign langauge] Lembrando que o capital sempre é fator. Of course. One of the main ideas of this capital theory is each investor calculates their own loss according to their own cost of capital. Each investor has their own cost of capital, right? The controller has its own loss, but each investor can get the information and calculate their own loss, right? [Foreign langauge] A pergunta é a diminuição do ROIC em relação ao dividendo. So I think that when you consider the cost of investment, [Foreign langauge] Mas qual a perspectiva para os próximos trimestres? Looking to what the perspective is for the next quarter, considering the ROIC and the capital structure. [Foreign langauge] Quando a pergunta é a diminuição do ROIC, a gente enxerga para frente isso. So how do we look at this forward? So how do we enxergar essa curva se reverter? So obviously, inversion in the curve in the next few months will start having greater clarity on the investments and the Gaia platform returns. What happened? Was mainly due to the investments in the Gaia Platform [Foreign langauge] Nesse último trimestre e que nós estamos agora iniciando o processo de desalavancagem e também capturando os retornos que são importantes em 2025. Mas em 2024, In 2024, when there is a greater compensation of the Gaia Platform, we'll see the gains of the earnings from the Gaia Platform. [Foreign langauge] E a outra pergunta aqui é sobre também a plataforma NEOS. [Foreign langauge] O que vocês podem trazer? What you guys can share about greater data on the Neos project and specific expectations that you guys are considering? [Foreign langauge] Os nossos investimentos, eles têm sempre uma visão de long-term business. Investments now are basically to capture returns throughout all life, right? So investimentos de longo prazo. Mas evidentemente. Expansion position. So these are all long-term investments, but the decision of investing now is really connected to this moment with the interest rates that are a little higher. [Foreign langauge] Nós consideramos isso nos nossos investimentos e a gente está sempre tendo uma visão de que os investimentos do nosso negócio estão vinculados a estratégias. Investments are connected to long-term strategies. [Foreign langauge] A gente calcula sempre a taxa real de juros. We always consider the actual inflation. [Foreign langauge] Então as análises que fazem de cálculos de inflação sempre usando juros reais. E aí vai depender muito do mercado financeiro real que interessa o financiamento. Of course. [Foreign langauge] Então, mas a gente navega ali. Hoje você olha uma NTN-B longa lá na casa de sete, a gente consegue acessar outras NTN-Bs mais baratas. We access other funding lines. [Foreign langauge] O mercado de capitais, o mercado de instrumentos, no mix, é o que a gente acaba olhando. E o outro lado que a gente considera do mix of NTN-Bs é esse juro mais reduzido do que a gestão econômica que pode dificultar a venda do capital. Então a gente analisa tudo isso. So we analyze all these factors and of course we consider the scenario how it is moving along. [Foreign langauge] Acho que a gente tem que decidir sobre o momento de fazer. Also understand the right moment to have this new Neos cycle. [Foreign langauge] E tem uma última aqui, a pergunta do Shin. Pode dar racional do valor dos ativos biológicos do quarto trimestre? We're just giving the rationale of the Neos cycle for the quarter of 2024 and the expectations for the second half in 2025. [Foreign langauge] Quais foram os pontos mais relevantes? Which were the most relevant points? [Foreign langauge] Avaliação de dezembro? In this very early December? I'm going to help you with this. The main points. [Foreign langauge] O preço de madeira, a gente calcula, a gente utiliza a média dos últimos três anos para a captação. E o efeito pós-pandemia dos três anos aumentou bastante o preço de madeira, quase que dobrou de preço. E agora está trabalhando com mais estabilidade. [Foreign langauge] E no horto florestal do Rio Grande do Sul, a gente utiliza o preço de mercado atual e o preço médio é de sete anos, então isso varia muito para ficar mais justo. Então a gente utiliza uma média de sete anos. Então para 25, a gente imagina incremento, só que menor do que o que aconteceu nos últimos anos. The increment may be smaller than what happened in the last few years. [Foreign langauge] Mas você pega aqui e consegue precinho para outro. [Foreign langauge] Isso. [Foreign langauge] Excelente. Yes. [Foreign langauge] Tem mais alguma pergunta aqui nesse meio tempo? Regis, vamos continuar. We will be seeing. Any other questions? If not, we're going to wrap up. Regis, if you do have a last question, feel free to hop in. If not, we're going to wrap up. [Foreign langauge] Não está conseguindo abrir o microfone? [Foreign langauge] Se quiser colocar no chat também a pergunta, fica à vontade. [Foreign langauge] Não está chamando. Bom. [Foreign langauge] Bom, eu acho que não está conseguindo ouvir a pergunta da Luana. We'll wrap up here. [Foreign langauge] Podemos encerrar aqui então? We can end the call. [Foreign langauge] Muito obrigado aí pela presença. I want to thank you all for your presence. [Foreign langauge] Lembrando que nós estamos super. And remind you that we're really excited about 2025. It's going to be a wonderful year for the company. [Foreign langauge] Eu acho que a gente está em uma condição muito melhor do que nós iniciamos 2025. Hope we start off at a better position than what we had in the beginning of last year. So we definitely have an important carryover and a great price expectation as well soon after. So that should change the dynamic a lot for our results in 2025. Thank you guys. Have a great evening. [Foreign langauge] Obrigado pessoal. Take care. Good afternoon. Bye-bye.