Good morning everyone. Thank you for waiting. Welcome to Santos Brasil First Quarter 2023 conference call. With us here today we have Antônio Carlos Sepúlveda, Chief Executive Officer, Daniel Pedreira Doria, Chief Financial and Investor Relations Officer, and Ricardo Dos Santos Buteri, Chief Commercial Officer. At this moment, all participants are connected in listen-only mode, and after the presentation, there will be a question and answer session when further instructions will be provided. I would like to remind you that the earnings release and the presentation are available at the company's investor relations website, where the replay of this event will be available. Before proceeding, I would like to point out that forward-looking statements that may be made related to the business perspective of Santos Brasil, as well as projections and potential operational targets are beliefs and assumptions of the company's management, as well as information currently available to the company. Forward-looking statements are no guarantee of results. They involve risks, uncertainties, and assumptions because they relate to future events and therefore depend on circumstances that may or may not happen. Investors and analysts should understand that general conditions, sector conditions, and other operating factors may affect future results of the company and may lead to results that differ materially from those expressed in such forward-looking statements. I would now like to turn the conference over to Mr. Doria, who wil l begin the presentation. You may proceed, sir. Good morning. Thank you for attending our call. I hope you're all well. Antonio Carlos Sepúlveda is by my side as well as Oteri, our Chief Commercial Officer. The main topic for the first quarter of 2023 is the drop observed in handling of containers of around 14% year-on-year, worsened by the strong but imperfect comparative basis of the first quarter of 2022, mainly in the Port of Santos. Having said that, 2023 is proving to be a challenging year in terms of container volume. Our expectation is that the quantities projected for the next quarters will stabilize the decrease that was recorded, although we do not rule out even a slight downturn in terms of volume at the Tecon Santos, our main asset. What seems clear to us, however, is that this 14 year-on-year gap should close. Therefore, we should not expect an imbalance between supply and demand capable of impacting the current running of Santos Brasil's business. In the first quarter of 2023, the main impact was on import, especially consumer goods. The flow to which the company is most exposed, which explains the loss of market share of Tecon Santos in the first quarter, which reached 38%. At the beginning of this year, the exports of commodities, which tend to be more resilient, also dropped, given a global inflationary scenario and economic slowdown in several buyer markets such as the Euro area and China. In any case, even with a decrease in the number of containers operated at the Port of Santos, the use of our terminal remains high. The other container terminals also recorded a decrease in the comparison of the 1st quarter of 2023. The Container Terminal Colúmbia registered volumes 14% lower in the annual comparison, reflecting the slowdown in exports of minerals and agriculture commodities and also the cabotage in the region. In addition, the Container Terminal de Itaguaí was affected by the downturn of cabotage with a drop of 9.5% in handling of containers in the 1st quarter of 2023. Regarding TVR, the vehicle terminal at the Port of Santos, there was a slight increase, close to 2% in volume in the first quarter of 2023 compared to the first quarter of 2022, with 55,358 vehicles handled with an increase of 6.1% in exports and a greater share of heavy vehicles in the mix, which reached 11% of the total operations. Three percentage points above that of the first quarter of 2022. The emphasis on exports of agricultural machinery and construction equipment. Finally, Santos Brasil Logística's bonded warehousing operations were impacted by the drop in imports at the Port of Santos, with a 13% drop in the volume of containers stored at CLS. On the other hand, there was a growth of 3PL integrated logistics operation as a result of a commercial strategy based on customer segmentation and improvement in the level of service. In the first quarter of 2023, the distribution centers registered an increase of 20% in the volume of pallets handled, totaling 282,000 units. As expected, the financial result of the first quarter reflects the lower volume of port terminals. Net revenue remained relatively stable, totaling BRL 427 million in the quarter, which represents a 3% year-on-year decrease. EBITDA amounted to BRL 153 million, 15% below the first quarter of 2022, a margin of 36%. In other words, 3.5 B less than year-on-year. Net income was BRL 46 million with a net margin of 11%. Logistics. Tab, however, presents the growth of 14%, 40% and 13% in EBITDA respectively, mainly due to the increase in the average tickets and a more efficient management of the storage and integrated logistics contracts. In the case of GEB, due to the greater participation of heavy vehicles in the mix. It's also worth noting that the first quarter of 2023 marks the first positive contribution of EBITDA from liquid bulk terminals, which reinforces our confidence in the value generation potential of this business unit. Even with just a few months of operation, our contracted capacity already exceeded 2% utilization with a reasonably diversified customer base. From the second quarter onwards, we will gradually begin to observe an improvement in the company's margins and financial indicators, mainly due to the good composition of prices practice, including the quay services offered at Tecon Santos, in addition to the resizing of costs and expenses then projected for a higher throughput. As I mentioned in our last call, Santos Brasil's gain is not volume for volume's sake, but being ready to capture future demand for higher value-added services and cargo with great operational efficiency and prices that adequately reflect the quality of its assets and the excellence of its operation. The volumes observed in the first quarter of 2023 did not change our strategy in any way, nor do they raise any concerns about the growth potential of Tecon Santos and our other port and logistics assets. For no other reason, we invested BRL 86 million during the first quarter of 2023, BRL 67 million of which allocated to Tecon Santos, continuing the expansion, modernization, and infrastructure improvement with the aim of continuing to be the largest provider of handling of containers capacity in the Port of Santos with a high level of service. Santos Brasil is committed to reaching at least 2.6 million TEUs of cargo capacity by 2026. A 30% increase from the installed capacity as of last year. It is as if the company were a new medium-sized terminal in the Port of Santos, but with all the synergies, high return and high potential for generating value of Tecon Santos. In this alone should be around BRL 400 million in 2023. Starting next year, we're going to slow down this inward. The other unit should absorb a large part of the payments projected for 2023. The liquid bulk unit received about BRL 11 million in the first quarter of 2023, with the lowest CapEx we've identified with the start of the expansion works. Today, Santos Brasil operates a capacity of 50,000. It will initially be cold, and in the second phase will reach around 200,000 cubic meter in 2026. We end the quarter with cash and cash equivalents of BRL 541 million. The net cash of BRL 248 million. We continue optimizing the capital structure throughout of 2023, including via distribution of dividends to shareholders. Next Monday, May the 16th, we will distribute around BRL 45 million in dividends. Moving on to my final remarks, I would like to highlight some of the initiatives and results related to the sustainability agenda. Santos Brasil was elected for the fifth consecutive year as one of the best companies to work for, being certified by the Great Place to Work, the GPTW, which demonstrates our commitment to invest human resources and continuously develop our employees. Finally, the company was chosen as the third most influential company in ESG in the digital field, according to the report ESG Evolution in Brazil, carried out with the UN Global Compact in partnership with Falconi and Stark consultancies. In addition to having won the ESG award, we won the Great Reboot because of the telemetry project that are implemented in the business units. I thank the top managers who congratulate everyone on another quarter of important achievements. Now we are available for the Q&A session. Feel free to ask your questions, and thank you very much. We are now going to start the Q&A session. For those who wish to ask a question, use the function Raise Hand that is in the bottom part of your screen, so that microphone can be unmuted. If you want to send your question in writing, you can use the Q&A button also at the bottom of the screen. The raise hand questions are also going to be answered live quick while we collect the questions. Our first question comes from Diego Mendes with JP Morgan. The line is open, sir. You may proceed. Diego, you may ask the question. Let's move on to the next question. Lucas Tody Your line is open. You may proceed, sir. Thank you. Good morning, everyone. Thank you for the call. I have two topics to be addressed. I'd like to understand your comment on your prospects for volume for the year. Speaking in the light of the guidance that was provided in terms of the consolidated results, I had some questions when you made some comments. You said there can be a downturn of volumes in relation to the first quarter. What do you see in terms of lineup for the rest of the year? Is it fair to say that we're going to consider minus eight for the year? I would like to understand the rationale behind it in terms of numbers and in the consolidated terms. The second topic, maybe, Antonio, you can help me out. We have seen some movement of the BTP for anticipated renewal from the regulatory point. What do you think this could increase in terms of capacity for the BTP? Because I think this is something interesting for the government. What have you heard in terms of capacity on their side? These are my two questions. Thank you. Lucas, this is Ricardo dos Santos Buteri speaking. I'm going to answer the first topic about volume. I can say that the first quarter, according to what we experienced in the past seven weeks, we saw recovery volume in every trade, in every surface, especially in the consignation of Asia to Brazil, which is already above 90%, shows us that we reached another level. In the previous call, we mentioned that the trend is that in the last fortnight of March, this curve would resume. What I can say to you, since the lineup is public and can be disclosed to you, we have the consignation above 90%. We came from 60,000 or 70,000 containers in the May asset, which is the Tecon Santos, to close to 100,000 boxes a month. I'm not only talking about this moment, I'm also talking about the previous month. The resumption volume has been confirmed. It's completely different, about 40% of what we experienced, especially February, where we had the worst downturn in the last five years. What we can say is that consignation has been normalized with the larger ships. They are doing what we call a revamp of ships, with the ships with 11,000 containers. This is how we predicted the future. When we provided you with a guidance, we had a vision of the downturn of the first quarter, and we built the guidance based on what we had experienced in terms of lineup that would be applicable to the months of April and May. Consider everything that I'm saying to you is that the peak season will go back after the third quarter of the year, and the guidance that was provided by the company is being confirmed in considering the results because of the results that were recovered, and also as a result of the renegotiation and also the improvement of the mix. This confirms all the negotiations which are underway. This is Daniel. I would like to add something. Our guidance has a certain level of flexibility. If we go to the bottom of the guidance, it would be... It would account for a downturn of 8%. There would be a growth. That happens because our visibility happens every week, and that would depend on variables and factors which are not controlled by us. Only to summarize what's said before, as we see it, we understand that this is going to be in the meeting point of the guidance, and it would stand a little downturn. We're going to be very close to the medium-term or the medium way. This is our best estimate, and this is something that is being updated every week. As we get information, we provide the update to the market. Hello, this is Antonio Carlos speaking. I'm going to add to what Daniel and Ricardo have already said. I believe that the first quarter was really out of the curve. We handled about 76,000 containers. If compared to last year, we had a year of average of 90,000 containers, and we have a terminal prepared for 120,000 containers. This is the average for the quarter. What we have shown is a lot of resilience, and this was driven by the cost control that we have implemented at the company and also the operations. We have an operational leverage, which was very, very strong. When we look down the road, April is a public number. You can have all the figures, and you can see that at Consantos we have reached 95 containers. We have handled the number, which is also underway. The loss of commodities and cargo, and also imports of vehicles. We noticed a big loss in the first quarter. In addition to the recomposition of our prices, I mean, this was not included in the results of the first quarter. This will be registered only after April. This, all those items allows us to be confident that we are going to deliver the guidance we provided. No other quarter of the year is going to be similar. Your second question in relation to BTP. BTP extended its agreement, and it contemplates the occupancy of the entire area according to their full strength. Probably they are going to optimize the area, the yard, and they're also going to enhance equipment. However, this has no meaning in the general balance. I would say that any capacity is going to be easily absorbed by the growth that Port of Santos presents, considering the current situation of occupation. We cannot forget that there is another shipbuilder that brought Log-In, Log-In is likely to be included in the integrated logistics of this shipbuilder. This is a shipbuilder that works with BTP. We believe that this increase in capacity is likely to be consumed with an increase in transshipment that is likely to happen in the Port of Santos. As Ricardo said, there are larger ships being allocated for Asia and Europe. For sure this is going to demand the use of transshipments, diverse ships. This is something that is going to continue increasing our business. Thank you. That was very clear. Thank you very much for the answers. Have a good day, everyone. Our next question comes from Gabriel Rezende with Itaú BBA. Gabriel. Gabriel, your line is open. You may proceed, sir. Danielle, Ricardo. Danielle, Ricardo, thank you very much for the space, for my questions. I would like to do a very quick follow-up in terms of volume. I would like to understand how you see the evolution of the mix for the quarters in the future, considering the rising of February of the monthly level. You mentioned in the release that there was a drop of full containers that impacted the margin. I would like to understand the mix of imported and exported items may be impacting the profitability of the company. I also would like to add that the business assessment that's likely to be relevant for this half year. How is the space and what will be the quarter most impacted by the assessment, and how is the sales negotiated with the client? Are clients willing to reach a favorable outcome in the negotiations? Gabriel, good morning. This is Ricardo speaking. We have already unmuted your microphone. In relation to the two points you asked, its evolution, as Antonio Carlos mentioned or added what he said in terms of exports. Cargo, beef, there was a stoppage because of sanitary reasons, and there was an impact because the average tickets when we receive all the services All the payment of the services, of all the services related to the beef are very relative. After the commercialization was approved, everything went back to normal. The mix where we saw this loss was a ticket which was more favorable. It's a ticket that we were used to realizing. It's already resuming and there's no prospect of any stoppage down the road. There is another one which is the bonded warehousing. Regardless of the Port of Raja or the Santos, regardless of how they had this, they were impacted. It's just natural when we have no longer a bottleneck, we can add services and there are no additional scales, and there's no possibility of the players of Tecum to bring in the problem home. One other point, even with number of containers already invoiced at a lower volume, we understand the stake and the revenues of our logistics area group. The promoters range, and we're retaining ship value when we have our new customers. We see an effect that regardless of any downturn in the situation, we are sustained. In the next we have the opportunity to start cargo. The secondary zone can depend on the downturn in the sense. As I gave in the first answer, see many possibilities of cargo. The point is that the years are there at a very heated pace with a very good end product, and the volume of cargo was growing, and there is no prospect of downturn. These are talking about the evolution of the mix. There is no likelihood of downturn up to the end of the year because we are talking about ore companies and the mining companies, and we already have the line up and also all the forecasts receive all the cargo. This is a mix related to general cargo projects, logistics and general cargo. The second point you asked about the adjustments. We continue with the same strategy that we adapted with the main clients of the company that has a large market share. The strategy is underway, which is the recognition of the balance of the company and the focus of the company to generate the best level of service of the company and maintaining the capacity. We are always improving the SLA of every ship that comes into the terminal. You asked about the month. What's the month where this impact is going to be more relevant? Out of the nine, we're going to take adjustments. four will happen up to 31st of July 2023. As of August, out of the nine agreements, four of them will have their negotiations already gone as of August. We'll see a new territory in Asia and as well, so that we can complete by the end of March and beginning of June, so that we can end the negotiations because we start the negotiation 60 days before the termination. Thank you, Ricardo. Have a good day, everyone. Our next question comes from Victor Mizusaki with Bradesco BBI. Your line is open, sir. You may proceed. I have two questions on my side. Could you give an update on the discussion of the M&A in logistics. Have you made any headway in terms of acquisition of new assets? The second question is also related to volumes. If you think about the volume of first quarter and thinking about TEUs and tariffs volumes below $50, I would like to understand if this impacted the volume of the first quarter. Can be an important driver along 2023. Do you see any other type of product that we should be monitoring that can provide us comfort in terms of recurring volume along 2023? Thank you. Hi, Victor. This is Danielle speaking. In terms of M&A and logistics. Nothing is on our radar. We have considered this different growth. We came to the conclusion after doing lots of analysis and studying assets. We understand that our best bet is in organic growth of this business unit that has a long way to grow in the area. Integration is our focus. That's why we say integration to the port assets. This is the focus of our company. We look at the logistic market, which is very diversified, risk after in Brazil. There are not many assets with these characteristics that we have. This is not where we are looking for growth. Where is the positioning. I think the strategy of the company is very clear. We are growing in containers and also in bulk. This is what I shared all this in my speech. Since Brazil is building a new exercise terminal and the return is very high. We are investing in the short cycle in terms of capacity. We also have room to move on to 3 million TEUs in the next five years as of 2026. We are talking about 1.1 million TEUs. This is basically the way we see it. Of course, if opportunities emerge, the company would have the financial capacity to consider an acquisition. Now, nowadays, we understand the biggest return is increasing the efficiency of Santos Brasil. The same would apply to liquid bulk. We are likely to reach 200,000 cubic meters. We are going to have 1/3 of the capacity of Port of Itaqui. We have a very experienced and very well-formed team. The idea is to have a small terminal but with high utilization rate. We are always on the lookout for acquisitions that would bring in a lot of value. Nowadays we have those three directions and those three pillars are very well devised. I'm going to turn the floor to Ricardo so that he can talk about volume. Victor, I understood your comment, especially in relation to the impact of tax and of a product up to $50. The answer is no. No, there is no impact. When we look at the world of containers, this has to be considered. The influence of the downturn in volume in the first quarter is not going to have any influence as indicator. Why is that? Because industries have high storage levels. There was something related to low consignation of Asia and the blend sales that we had in the period. This is something very connected to demand. We see values higher than the tariff on this regional value. We have another business, as I commented before, which is the segment of the fractionated cargo. The news I would like to convey is that there was no downturn in our processes or, as we say, the view lane as a technical ledger, the processes of the businesses that bring freighted cargo. This import did not have any impact. The number of B/Ls budgeted, analyzed the B/L, especially within the first quarter, and continuing with integration in the past months is above. This is not only because we have a new agreement. Simply, there was no impact of this nature in the first quarter, the reasons were different, as we have already mentioned. Okay, thank you. Our next question comes from Guilherme Mendes with JP Morgan using the Q&A tool. Good morning. Thank you very much for taking our questions. First question, what's the resumption of volume for the next month in terms of services, imports and exports and cabotage? Which ones are going to have more influence on volume? Second question, what's the optimum capital structure for the company? What would be normalized payment of dividends? Thank you. Thank you. Guilherme, thank you very much for your question. The resumption of volume levels is extremely compliant with the percentage that we have observed in terms of cabotage transshipment. Imports becoming much stronger because when you observe the consignation of the ships, and we have the on-time estimate of each ship that is loaded, and we know exactly how many items are coming in, how much of imports is coming in. I can say that imports is going to resume by the increase of consignation from the services from Asia. This is the most detailed information that we have in relation to the ships and the strait. Now, in terms of cabotage, it has already resumed pre-pandemic levels. It has already reached the normal level. What is going to grow when compared to the first quarter of 2022, as Asia are coming with more cargo. We see difference in the transshipment because there was a drop in of 31% in transshipment level. I would think, I would focus on transshipment or cabotage. All these have already been normalized in the... especially in the seven weeks as we observed not only in Santos, but also in other ports that we have. Guilherme, adding to what Ricardo said, there are two macro effects which have a very big influence in the Port of Santos. China is more active in terms of economic activities and started to purchase more. The other is the sugar increase. This impacts the consumption in the northeastern region and also affects the cabotage. We still haven't noticed in April or in the first quarter the effects of those ones that I mentioned. In April, we felt the effects of increase of imports. I believe that at the second quarter and the beginning of the third quarter, we are going to start noticing the effects of increase of imports, cabotage because of those two factors. Dividends and capital structure. Since last year. The company started to pay a lot of earnings. We used the reserve balance to increase the distribution. If I'm not mistaken, we paid $0.70 per share, a payout of 95%, if I'm not mistaken. We can keep the same level of payout. Why is that? Because cash generation is increasing and the CapEx is going to be lower. As of the next year, we are not going to use so much CapEx. Why is that? Because the essential works for the acquisition of equipment to reach the optimum capacity at the Santos have been invested. At Itaqui, we managed to invest 80% of CapEx with the Banco do Nordeste with very attractive rate. I would say that it's the cheapest and lowest interest rate in Brazil. We have a good problem in our hands. We have a cash level that will not be equivalent to the interest. Maybe we're going to do something else or maybe a buyback or reduction of capital. This is not being discussed yet. I can say that Santos Brasil is going to be a value company, and we are going to present growth in the next five, seven years. I'm quite sure about that. We're going to be a value company because we are going to be able to pay earnings to our shareholders without impacting our expansion. We can also see the possibility of new acquisitions, because the balance sheet would provide support for that. The company, in other words, is going to continue to be de-leveraged because there is no need in the short term to take any loans to finance its growth. Those who wish to ask a question, you can use Raise Hand function so that your microphone can be unmuted, or you can send a written question in the Q&A button. Both are located at the bottom of your screen. Please wait while we collect your questions. Having no more questions, I would like to invite Mr. Doria for his final remarks. Once again, I would like to end the call. Thank you very much. I hope to see you again next quarter in the earnings conference call. Have a good day, everyone. That concludes Santos Brasil's conference call. Thank you for participating, and have a nice day.