Great. Thank you everybody for joining us. Our next presenter is Lavoro. For those of you that don't know the company, Lavoro is an ag retailer that acts as, you know, a gateway to the farm. You know, through their knowledge, through their relationships, their distribution reach, they're able to bring key technologies to farmers going forward. We're very happy to have them here at our conference. Yeah. I think what we'll do is a slideshow presentation that will be delivered by Ruy Cunha, who's the CEO of Lavoro, and that'll give you an overview of the business. We've got 25 minutes total, so if we have a few minutes at the end of the presentation, we'll do some Q&A. With that, I will hand it over. Hi. Thank you, Bobby. Good morning, everyone. I'm Ruy Cunha, CEO of Lavoro. The presentation will be shared. I advise you to please read the legal disclaimers and also the risk factors. Today we're gonna talk about Lavoro, and I'm gonna to introduce you to our company. Just before that, get to know me a little bit better. I've been working in agriculture in Latam for the last 12 years and leading Lavoro, and I'm being with Lavoro since the beginning, since 2018. Lavoro is a company that is changing the landscape of retail in Latam. By the way, there's a lot of changes happening on the retail in Latam. Why retail is actually important in this whole context. Just to give you a quick introduction of the macro story behind Lavoro here. The world needs more food, right? I think this is undisputed. Latin America will be a key component in supplying this food or closing the food supply gap. A lot of food production needs to come from increase in productivity in Latam. This comes with investments in technology and support to small and mid-sized farmers, which are in number, a very significant chunk of the farmers in Latam. This is where the retailers came in. Retailers are the trusted advisors to the small and mid-sized farmers in Latam. They provide products, services, and they provide advice so the farmers can have the best use of their inputs and be more productive. Differently from the large farmers, the small and mid-sized farmers, they're much more dependent, and they rely much more on the retailer in order to be more successful and in order to produce more. Retailers really play a key role in the overall scheme of things here. If I move to the next slide. We believe that Lavoro, as a major retailer, has the ability to have a major impact in this segment, well above the other players, and for a few reasons. Number one is scale. Lavoro is the largest ag input retailer in Brazil. We also have developed a very structured M&A process and very strong M&A capabilities with a team of dedicated professionals that have closed 22 deals over the last five years. riginal founder and we keep a lot of the original team in order to secure a smooth transition. Then we add value to those companies by improving their portfolio, adding new technology tools, adding expertise. In particular, I'd just like to highlight two things. On portfolio, we have an extensive product line in biologics. One of the things that we add to the portfolio of newly acquired companies is the biologics product portfolio, also specialty fertilizers, and we also help them with the digital agenda. As a result, I will show you in a minute, the acquired companies, they tend to accelerate their growth and value creation once they join Lavoro. The next slide, let's see some highlights of the company. First of all, Lavoro operates currently in 3 countries, Brazil, Colombia, and Uruguay. The company has just signed a deal to enter in Chile and Peru. The first key point about Lavoro is a Latin American platform. Now, some of the key characteristics that you see on the right side of this slide. Lavoro is a large scale operation. I already mentioned that we're number one player in Latam. We have almost 900 sales reps visiting clients on a weekly basis. We serve more than 53,000 clients through almost 200 stores. Our net revenues in the last fiscal year was $1.6 billion, and our fiscal year ends in June. Scale is really key. Second point is, Lavoro is a growth platform. Our pro forma growth over the last 2 years was 53% in revenues and 131% in EBITDA. As we grow, the company is also gaining more efficiency. The third key point is the M&A. I mentioned that we have some very specific capabilities, and we have closed 22 deals over the last years, and we do have 10 MOUs signed, which will help us to continue growing in the M&A agenda. Finally, Lavoro is more than a retailer. We have this vertical operation. We have 1 company, the name is Crop Care. That is a company that produces biologics, specialty fertilizers, and imports agrochemicals. A lot of those products, they go directly to Lavoro. Lavoro has their own line of proprietary products that help us to differentiate our portfolio and also to improve our margins. Now, talking about portfolio and technology. I mentioned that technology will be key to help farmers to be more productive. Lavoro offers the four main categories of products that farmers need to be productive: crop protection, fertilizers, seeds, and specialties. So does some other retailers. What is the difference between Lavoro and the typical retailer? Is the size of the portfolio. We have the ability, because of our size, to select the right partners. You can see here we have, you know, in each one of the categories, we have the most important players, even some global players like Bayer, BASF, Corteva. Lavoro has the ability to select between those suppliers the portfolio that better fits to clients in a specific region. If you take a country like Brazil, there's a lot of different scenarios and agricultural needs, Lavoro has the ability to select a wide range of portfolio to better fit the client's needs. In addition to that, I already mentioned we also have a line of proprietary products. The quality of our portfolio is a key component in helping our clients to be more productive. Moving to the next slide. That we understood a little bit of retail and the key highlights about Lavoro, looking ahead, Lavoro has four main growth engines to support our value creation over the next years. The first one is addressable market expansion, and here is related to the whole macro story of growing production in Latin America. The second point is growing our footprints, and this will be done by executing on our M&A strategy and also the opening of new stores. We have the third engine, which is adding new customers. Basically, the strategy here is that by adding new sales consultants with some specific methodology that we have developed, we can serve a larger set of clients. Finally, we also have new sources of value. Here, those are areas in which we can have a very accretive growth, not only in revenue, but also in margins. I'm talking about the expansion in Crop Care and also new areas to us, like entering services and the whole digital arena. Those are the main engines that will help our future growth and value creation. If you look at the slides, our ambition is to grow revenues from $1.6 billion to $3.4 billion in two years. This is equivalent to a CAGR of 48%. The breakdown is related to the engines I just mentioned. We're pretty confident with this plan because the engines are well-known to us. Let's go into a little bit more detail on each one of them in the next slides. Let's first talk about the market. The ag input market is driven by the ag production in the region. Let's take Brazil, which is the major driver in the region. If you take the grain production over the last 10 years in Brazil, it has grown around 70%. Brazil is already responsible for 35% of the global soybean production and 9% of global corn production. The growth in production has been done by adding new technology. For instance, new seeds technology have helped farmers to accelerate their crops. Farmers in Brazil, they have 2, sometimes even 3 crops per year, helping them to be more profitable and having a higher income per acre. This higher income allows them to make more investments in agri inputs. This is driving a lot of the growth in the ag inputs segment. Also like to mention that Brazil has a lot of space to expand the agricultural land. If you just take what is current pasture land and transform it into land for agriculture use, we have an opportunity of 116 million acres. This is more or less equivalent to the total area harvest in Argentina, for instance. There's a lot of opportunity of transforming pasture land into farmland. This is also another example of how we're gonna grow these markets. If you look at this historical growth in the ag inputs market, this market is growing in Brazil, 16% per year. Very accelerated growth. On the right side of the slide, you understand that the growth in the ag inputs market so more investments in technology is also helping farmers to be more productive. The more productive they are, the more they invest in ag inputs. This creates a positive spin, as, and as you can see, not only the income is growing for farmers, but it's also interesting to note that farmers, they have in Brazil, typically one soy crop and one corn crop. You see the corn, which is the second crop that used to be a small crop in Brazil, because of technology, is becoming actually a very large crop. They, they do have like an expansion in their income based on the higher production of corn that they had over the last years. Next slide, please. In addition to the growth in the addressable markets, we have an opportunity in the inorganic expansion. We have more than 2,000 ag input retailers just only in Brazil today. The vast majority of those companies are mom-and-pop operations with less than $20 million in annual revenues. According to ANDAV, which is a major association of retailers in Brazil, 89% of retailers are still owned by their original founders. Out of those, 75% are interested in having M&A discussions because they understand the new retail model that is being created is a retail of large scale and much more sophisticated services. This is where we see a lot of opportunities for Lavoro. Lavoro is the number 1 consolidator in this market. We have developed this technology of finding good companies and making the acquisitions and then making the integration just after. In this chart, you can see the 22 deals that I mentioned that we closed. In addition to this, I also mentioned that we have a pipeline of MOUs. There's a lot of opportunities for further consolidation. In the next slide, you'll see that we believe that Brazil is probably 10-15 years behind U.S. in this consolidation of retail segments in agriculture. This is obviously again an opportunity for us. To explore this opportunity, Lavoro keeps a dedicated M&A team with 15 professionals that only do M&As for Lavoro. We have a large proprietary deal flow with more than 80 targets, 80 potential targets, and we have 10 signed MOUs. In addition to this, we also have a dedicated integration team, 'cause once we acquire those companies, we start the work of value creation. All of that to say that, we do see a lot of opportunities for further consolidation beyond what we already did in Lavoro so far. Once we acquire those companies, we start another agenda, which is the organic growth. We can see on the next slide that organic growth is an important component in our value creation strategy. We do organic growth by two main engines. One is footprint expansion, and the second one is adding customers. Let's talk first about footprint expansion. We have developed a methodology to find the right place to put a new store, and we are adding 20 stores per year, every year, in Lavoro. We currently cover approximately 80 million acres with our current footprint, and we do see an opportunity to expand more 14 million acres in the next 2 years, so 17% expansion, by adding new stores. This is another great opportunity that we see for expansion. Now moving to the next slide. We also have an opportunity to add new clients, and to do so, we need to add more sales consultants. Just so you understand, Lavoro believes that farming is a complex operation, and farmers, they need support in order to take their decisions. We have mapped more than 70 decisions that farmers need to make in their growing season. Sometimes small and midsize farmers are not properly equipped to take those decisions, either because they don't have the product expertise or they don't have the agronomists on the ground to help them to select the right products, and then also to help them to set up the machines. Our approach is to have a massive presence of our consultants helping them to take the best decisions. This is also another differentiation in Lavoro, which is a lot of investment in the sales consultant in order for this guy to be more effective. This includes training, this includes also a wider portfolio, as I have mentioned, and also investments in technology, for instance, sales force tools that help them to be more effective in meeting clients' expectations. Next slide, please. Once we apply those tools, we usually can accelerate the growth of the acquired companies by quite a bit, between 2 and 3 times faster than what they grew prior to Lavoro's acquisition. Here you can see by vintage, the historical growth of the companies we acquired in the gray bars, and then on the blue bars, you see the acceleration after the acquisition of Lavoro. It's a very consistent track record of accelerating those companies. In addition to this, we also explore synergies and help them to be more profitable. I mentioned the portfolio expansion. We also help them to take costs out by plugging them into our shared service operation, and also help them with the basic planning of supply chain and sales. All of that to say that we also explore opportunities for gaining synergies. Next slide, please. On the new opportunities for value creation, we do have Crop Care. Crop Care has these exciting opportunities about biologics and specialty fertilizers, high margin products and very effective products to help clients to reduce their investments because biologics and specialty fertilizers help them to reduce the overall investments and increase their crop yield. Next slide. Our projections for sales in Crop Care are very interesting and aggressive because we have seen the massive growth between 21 and 22 already realized. As you can see in the slide, 23 and 24 growth is also very aggressive, driven by the adoption of those products, future M&As and cross-selling with Lavoro. Next slide. Finally, there's an additional opportunity on services. Those are not captured in our financial projections, we do see a lot of additional opportunities to offer services related to soil testing, financial services, logistics services, so on and so forth. Currently, this represents 0 in terms of revenues in Lavoro. In the future, this will be a great tool. If you look at Nutrien, for instance, which is our comparable in U.S., 13% of their gross profit comes from services. Next slide. In summary, this is the Lavoro flywheel. The more we grow, the more we can invest in services, the more we can invest in portfolio and in technology, we further differentiate the company. This creates a positive spin. Next slide. That will help us to achieve our financial projections. This is the perspectives we have for growth in revenues and EBITDA. We expect to double our revenues in the next years, driven by organic and inorganic opportunities. We expect to multiply the EBITDA by 3 times, driven by volume, better mix with Crop Care, and operational efficiencies. With that, finalize the summary of the company and open up to you guys. Thank you. Thank you so much. You know, I think I'll just. We just have a few minutes here, so I'll kick it off. Just maybe trying to understand if you were to kind of rank for us the margin opportunities as you expand. You obviously, you know, some of these in-house products carry nice margins. There's a services opportunity and then as you consolidate through acquisition, I imagine there's some redundant infrastructure that you guys consolidate. Just let us know kinda how you would rank the margin expansion opportunities there. Yeah. We have three major components of growth in margins. The first one is Crop Care expansion. We plan to grow with our EBITDA margins from 6.7%-9. S omething%. A major part will come from Crop Care expansion. We also have the growth in some high-margin categories, specialty products and seeds. We have dedicated teams to grow those categories. Lavoro has centralized, fully centralized purchasing as well. This should also help in the internal gain of margins in the retail. Finally, we have space for SG&A optimization. Crop Care, better mix and better purchasing, SG&A dilution. This should bring additional 3 points in EBITDA margins for the next 2 years. Obviously there are a lot of other questions that we could ask, but, you know, a big kind of macro one that I think is important for U.S. investors to maybe get a handle on is what you touched on, at the beginning with, you know, Latin America's, you know, rising role, you know, on the global stage in terms of food, export and food security. Can you just kinda maybe contextualize Lavoro within that broader macro trend that we're seeing? Yeah. Lavoro is the leading ag retailer in the region, right? We do believe that the impact Lavoro will have will be major. If you take only Brazil, 65% of the culture or harvest land in Brazil is being handled by small and mid-sized farmers. 65% is in this particular segment that is being served by retail. Lavoro is not only the largest retailer, but is also the one which is actually creating this new model. We have identified in the comparison with U.S., that the Latin American farmers, they are less leveraged, they are more profitable, but they lack the technology to accelerate their production. This is where exactly Lavoro comes in. We will come with better products and better services to help this major part of the farmers to accelerate production. Pretty big impact, I would say. Fantastic. I'm just gonna sneak one more in here. Just in terms of the services, I know you've recently started partnering with Pattern Ag, related to, you know, some soil analysis. You know, what does that do for you in terms of furthering that particular opportunity? Any other kinda pieces of the puzzle you need to put in place for the soil services? Yeah. We signed this agreement with Pattern Ag to bring the technology to Brazil. Pattern Ag has a very interesting product that I would say the technology is not available in Brazil. It is the first step towards the more sophisticated digital agronomy, more sophisticated agriculture with variable rate application. In order to optimize the ag input application, you need to understand your soil. Pattern Ag was preparing this tool for us, and we plan to launch in the market early next year. We strongly believe that this will be a game-changer in the market by adding a lot more information and better decisions to our clients with this specific tool. Fantastic. You know, I think we've run out of time, but thank you, Ruy Cunha. Really great overview of Lavoro. I think, you know, we're gonna be following the story very, very closely to see the next milestones in 2023. Thanks for having me. Thank you.