LOJAS RENNER SA — Call Transcript 2025

Good morning, everyone. Welcome Investor Day 2025. I'm Fabiana Oliver, Investor Relations Manager. Our event is being held in a hybrid form, so thank you so much for coming here to Porto Alegre, and thank you all who are online. The event, this event, is being streamed with simultaneous interpretations being provided. It will be recorded, and both the English and Portuguese slides are available on the IR website. This morning, we have had several executives here to present to you our strategies, our ambitions for the coming five years, and how we're going to get there. This is our agenda, how we put together this agenda for today. In the end, after Daniel's session, we're going to have a Q&A session. For people who are here, of course, just raise your hand, and we're going to have, like, we'll be able to answer your questions. And if you're online, please just click on the Q&A button. Now, I'd like to invite the President of the Board of Directors, Carlos Souto, to come to the stage. Good morning, everyone. Oh, it's too loud. Better now? I was so emotional today. It's a great honor to have you here in Investor Day 2025, a very important moment to reinforce the essence of the culture of Lojas Renner S.A., which was built upon transparency, discipline, and trust. These are values that have always guided our relationship with the market, along with a long-term view which is shaped by decades of decisions, pioneering decisions, and a leadership that has consistently placed Renner ahead of the trends in the sector. Our history in the capital market began in 1967 and reached a milestone in 2005 when it became the first Brazilian corporation whose 100% of its shares are negotiable in the stock exchange. In the capital is fully pulverized. This movement not only changed the company, but has also inspired the Brazilian market. The year 2025 is particularly significant. You know, we celebrate 60 years of our existence and 20 years of this milestone in the capital market, which redefined our identity. A history which has been marked by cycles, transformation, constant evolution, discipline to grow, and courage to innovate. We have always been anchored in the purpose of being a reference in fashion and lifestyle in Brazil by making clients happy and promoting responsible fashion. Since I joined the board as President in 2024 with our Vice President, Jean Pierre Zarouk, and all the other members of the board of directors, Juliana Rozenbaum, Chris Eddington, Andréa Rolim, André Castellini, Marcilio Pousada, and Adriano Seabra, our focus has been very, very clear to strengthen the strategy, to preserve the culture, and ensure the generation of sustainable value to all stakeholders. We're always providing support to our administrators and the company itself. We are independent, rigor, we're responsible, and the perspective geared towards the future, guided by our values and aligned with the highest standards of corporate governance. The role of the board is to ensure the continuous growth, sustainable growth of the company by defining the strategic decision, anticipating structural changes, promoting innovation, and strengthening our culture of leadership. We have seen up close the strategic initiatives of the company, ensuring that the opportunities became in results aligned with the interests of the shareholders and generation of value in the long run. Among the important stages, it's more things to get this year. We have reached a milestone which I would like to mention: the approval of our long-term incentive plan, a plan that aligns Renner with the best global practices all over the globe, reinforces our commitment to meritocracy and the alignment to the interests of our stakeholders, and also strengthens our capacity to attract and retain the talents to carry out the following cycle. What you will see today with our executive leaders is, you know, it's a company that is getting ready, getting ready not only for the next cycle, but for the next decade, which is more, will be more digital, more integrated, more data-oriented, and more and more geared towards sustainable growth, profit. In 2025, we have redefined the strategic priorities of Renner through a clear, integrated plan, which reinforces brand reinforcement based on an incomparable understanding of Brazilian customers, strengthening our position as the major reference of fashion in Brazil, a structure of unique products, differentiated and insight-oriented structure, in which we use data, artificial intelligence, and a model of execution that improves the margin, reduces remarcations, and speeds up the time for release. An omni ecosystem which is continuous and scalable, which expands its reach through new stores, better insertion into the digital sphere, and better productivity. You know, it's a strategic facilitator, you know, promoting more engagement and providing support to expansion into new markets. Discipline financial management, which ensures efficient capital with a solid cash flow leverage profile, which is conservative, and a flexible structure, which is efficient as well. In 2026, we're going to see the important beginning of a new cycle of growth and generation of value. On behalf of the board of administrators, I'd like to thank you all for being here. Thank you for your trust and your continuous work, and I would like to thank you all. Thank you all, our staff members, our administrators. You know, all of them, under the leadership of Fabio, have put together Investor Day, which I believe you'll love it. You know, they dedicated, they were so completely dedicated. Thank you so much. And thank you not only for Investor Day, but for all the days in 2025. You know, with their competency and high-quality work, you dedicated yourselves tirelessly to make Renner better each day. Now, I'd like to invite Fabio to come to the stage. Thank you. Good morning, everyone. I'd like to thank you for being here, both online and in person. So, I'd like to say that, you know, for us, both for the board and for me personally, or for all the executives, our focus is on sustainable growth and generation of value for our company. You know, we're focusing on that. That's why we're here today. This is a goal. You know, the goal is to share with all of you some of the ambitions that we have for the coming five years, which are related to growth and generation of value. Also, we're going to share, over the course of this morning, with you guys how we plan to achieve those results, thus maximizing the potential of our assets. You know, we have to reinforce to you that, you know, this is our starting point. We are leaders in the market. We are getting market share. We can get even more and expand our leadership position, leading position. We can leverage even more our, you know, our market differentials, competitive address. We know a lot. We know consumers a lot. We have strong brands which are recognized by everyone. We are unique in terms of the omni model. You know, we have the largest capillarity in Brazil in terms of physical stores with a digital relevance, which is very strong. Putting these two things together, it makes us very, very unique in the market. And by leveraging all that, we have a team which is highly competent and engaged. And all of that makes us ahead, ahead of our competitors. Well, but going straight to the point, you know, we started this period in from 20. We'll start the 2026-2030 period with a platform which is ready. We have invested in it, and we're going to talk about it. You know, we have invested in infrastructure, technological platforms, CV, artificial intelligence, algorithms, database. And our installed capacity is big, and we can grow with profits, with profitability. So this is the moment we've been growing. We've been getting, you know, our performance has been really good since mid-2024. But as Souto mentioned, in 2025, we stopped and looked at things. Okay, what else? What then? We have installed capacity to accelerate, to speed up even more and continue growing and gaining more profitability and revenues, so I'd like to just want to show you this. I saw it earlier before Investor Day. we have published some of the figures that you can see here, and you'll see throughout this session today with notices, relevant data about the indicators of expectations for the coming five years, so this is on our website. We have the expectation with these investments that we did with the initiatives that we will speak of today have an average growth in the next five years between 9% and 13%. More than that, with a gain in profitability, gain in profitability above this coming through scale, through gross margin, but reduction of expenses. We have an expectation in this period during these five years of reducing our commitment of expenses on the net revenue to two-three percentage points coming from the growth, gaining efficiency, also reduction, specific reductions. Another important point, talking about investments we did before, we came from a cycle of investment, 9% CapEx on our net revenue, investments geared towards this platform, this infrastructure, the installed capacity in the database and this model that is ready to grow, ready to grow with efficiency and profitability, so we go to a phase now that our investment goes, it is more normalized. We have an expectation of a CapEx on net revenue around 6%-7.5% in this period annually in this period, but the investment is geared towards growth. More or less two-thirds of the investment is for new stores, refurbishing stores, and digital journey, three points of growth, direct growth. When we align growth in sales, reduction of the commitment of expenses on revenue and a CapEx that is more normalized, it allows us also to be ambitious with a ROI around 20% and with a generation of free cash that is very important that allows us to do all of these investments, operate the company and having an expectation to continue to have a distribution of value to the shareholders in a high level. Daniel is going to explore this more, but we have an expectation to distribute a value between 50% and 80% of the profit to the shareholders doing the necessary investment and growing. Besides this, I mentioned that today, this morning, we published these indicators and a few others, but we also published a new repurchasing program and a new distribution of Interest on Equity. You can have access to this. These are examples that our new program of repurchasing, once again, in an interesting amount, a new distribution of interest on our own capital, are examples of the trust that we have in our company and the generation of value that we have for the shareholders. Well, in our strategy, I was talking about numbers, but it was guided in our purpose. Our purpose is to delight everyone. We want to delight our customer to go above the expectation of our customer and our shareholder expectation, generating more value. We do this guided also by an obsession in the centrality of the customer. Delighting the customer is essential for us, aligned to our value proposition to be a reference ecosystem in lifestyle and fashion. In the past, we talked about our strategic pillars. We call the three Rs, the three objectives where we want to be a reference. We want to be a reference in lifestyle and fashion, in delighting journeys of our customer and responsible btrends. These are the three references that we have worked on for a few years. The published strategy here is to accelerate and make potential, maximize what we were doing with a few other initiatives. It's not a change in the route. It's a continuity with an evolution and acceleration. Regarding the three pillars that we're going to talk about this morning, this is how to win, and the things that make it feasible are the innovation, artificial intelligence. Also, we are working over 10 years with this, not just database algorithm, developing of an end-to-end system to use this, the operational excellence that we have and our team, our people, and our culture. But I would like to call here. I ask you to play a video to see what Renner, Lojas Renner S.A. is today. We are. Oh, we have something. Well, we saw the numbers now, what Renner S.A., some of our brand concepts. We're going to see this in numbers. When we bring here, we are the leader ecosystem of fashion and lifestyle in Brazil. And a few numbers of the last 12 months up to September. These are public numbers. We have in this period over 20 million active customers purchasing the last 12 months that purchased with us, BRL 13.7 billion in sales in merchandise and retail, generated net profit of BRL 1.4 billion and generated a free cash flow of BRL 1.5 billion. Besides being the main fashion brand in Brazil, the most important brand in fashion in Brazil by far, we have a global recognition, also especially in our ESG practices. We are a reference in some of the main rankings and levels such as Dow Jones Sustainability Index, and we are AAA in the rating, in the Sustainalytics rating for ESG, ahead of our peers, domestic peers and global peers. But some of the competitive advantages of Renner are related to what we speak about, the three pillars, the three Rs. When we talk about the three Rs, fashion and lifestyle, a big competitive differential we have, we invested a lot during these years and we continue to evolve is our execution of fashion, our capacity to create incredible, delighting products, assertive, capturing the best trends, translating this to the customer, to the taste of our consumer of the Brazilian market, Argentine and from Uruguay also. Another important point is this issue of the supply chain. We have the best suppliers domestically, an important chain. It's an asset, a competitive advantage, and we have a long-term relationship with them. This is very hard to be built. We have over 20 years of relationship with our main suppliers. Besides this, we also have the flexibility of a global matrix of sourcing, two important assets that we have here connected to this execution of fashion, a network of suppliers that's a differential aid or supply system, 100% omni, 100% SKU based. We have the flexibility, the scale for physical and digital, working piece by piece, ringing speed, granularity, optimizing our assets and our stock also. Reference in delighting journeys, we have the issue of capillarity or physical capillarity, incredibly integrated to the digital. The omni is very important to be present 100% of our customer journey, not just in the physical journey or the digital journey. In both integrated, we have the biggest proximity with all of our customers and the best experience with the omni players also. All of this is made even stronger with a digital platform that booms with AI data. We invested a lot in the last few years. When we talk about data and artificial intelligence, it's present in different moments of our model and the platform. For example, our database that I mentioned, the knowledge of our customers that drives the journey with our customers and products is leveraged by AI that potentializes this convenience and recognition of our customers. Not just that. We go to the end-to-end model. When we capture the trends with more assertiveness, the decision of sourcing the supply, distribution, journey in the store, journey online, recommendations, content, and productivity of the team. All of this, we use a lot of AI, content, database, and this continues to evolve. Besides this, we have also the part of responsible fashion. We are a number one brand in value in Brazil. We are a reference also ESG globally and also financial stability and financial security or safety. When we talk about the market that we are positioned, Brazil, Argentina, Uruguay, the majority of our market is Brazil. We sell fashion, clothing, shoes, accessories, beauty. Here I detail the estimate of the Brazilian market in terms of garments, or apparel. In 2024, an estimate of BRL 132 billion in terms of consumption. And the estimate of Euromonitor is that this market will continue to grow 6% every year in the next few years because we are positioned in such a big market. This is an asset, a competitive advantage, also more than that. If we look at the formal market, the three biggest players only have 20% of the market. It's also a potential, not just in terms of growth in the market, but a gain of share in terms of the biggest players. We must remember that we are the leaders with 10% of formal market. Now, the crunches when we do benchmarking is a lot higher. Our potential is a lot higher due to this. We must remember that we're talking about the formal market. It's hard to estimate exactly the size of the informal market. The majority of the estimates talk about the 40% in informal market. So the formalization of the market brings this to the main players without even mentioning that we are positioned as the player that has the greatest potential to capture this market and grow even more our market share. Besides this, in this market, our positioning is a big asset, a big differential. We are positioned in accessible fashion where we have Renner, Camicado, Youcom, and we see a lot of space to be able to grow and grow more in the concepts we have, the brands we have. We see more space in the same positioning to grow with new concepts. The numbers that we mentioned today that we published that we're going to talk about are about the current assets that we have, the current concepts we have, the current brands, the BUs we have, the current geographies we have in the countries where we already at. There is potential for more. Yes, there is potential for more. We are always paying attention to this. We evaluate all opportunities with diligence, with focus to generate value to the shareholders. We're paying attention to concepts. It can be organic or inorganic. The inorganics, the complexities of integration, possible complexities of integration that are important and overlooked sometimes, or a new country also, the geopolitical issues. The possibilities are out there. It's not about this that we're modeling today's numbers up. Additional opportunities for the future. What we guarantee is we always will evaluate with discipline and focusing to generate value to the shareholders every moment. We have in the last 10 years, let's detail the cycles a bit more. We have an important growth and this important growth up. Part of it comes to do square meters physical expansion. In the last 10 years, around 5% concentrated in the beginning of the period because in the last years we almost did not grow square meters, but we grew with gain of efficiency. The sales grew more 10%. The profit and cash flow increased also. We did this with market share increase. We brought different indicators to compare. PMC and Euromonitor, PMC, we grew over four times that market average. Euromonitor, we grew over 100% of the indicator, gaining market, even more market in the last few years. Obviously, when we look at the main players, we have a different event in the beginning of 2020 when with the pandemic, the entrance of new business models, the indigenous growth of other players cross border that have a higher increase or growth in the market. When we look 2023 on 2024 and 2025, there's a stability of the other business model and a continuity of our growth. When we look at the plot right beside it in terms of productivity, looking at omni players, the data is public. It completes sales compared to the area. Sometimes there are many publications of results adjusted here, adjusted there, category X or Y. What's valid in total? We agree. Total sales that's generated on top of the assets you have. So we're gaining. We were a reference when you look at before the pandemic. We increased our advantage two times. We increased the gap. So we need to see how we can continue in this trend. Well, when we look at also, it's important to bring context to see the cycles, the moments where the growth is coming from, the profitability where it's coming from, and what we see for the future. I brought from 2010 to 2019. It was a moment that we grew a lot, especially due to the geographic expansion in Brazil. That was a moment where we advanced throughout Brazil. There was a boom of shopping centers, inaugurations, a lot of stores, a lot square meter, a lot of our growth, especially in the beginning of the period came from this. Besides this, we started to grow in new countries, new geographies. Close to the end of the year, we opened Argentina and Uruguay or Uruguay then Argentina. In the beginning of the period, we started to test and see the opportunities we understood of new concepts. The Camicado was purchased earlier this in the cycle. Youcom was created in the beginning of this cycle too. They began growing and contributing, you know, minimally at first, you know, in some countries in this period. When we look at the 2022, 2023 cycle, we made major investments in infrastructure, you know, this platform that is ready now with the installed capacity to grow with revenues, profitability. It was built in this cycle, 2020, 2023, you know, not many stores were open. I mean, some of them, of course, you know, we managed our portfolio. We closed some stores, we opened others, but in terms of area growth, no, we didn't have much. We grew digitally, of course, but in the moment, in the moment we were investing in efficiency of our digital platform. It was diluted, but the investments that we made, you know, allowed us to get into the following cycle, and I'm talking about 2024, 2030. You know, we're talking about the numbers, figures from 2026, 2030, but it started in the middle of 2024 and will be leveraged in 20 by 2030, but in that period, we saw that we finished our investments in infrastructure. We diluted expenses on income and improved profitability. Daniel is going to show you a little bit more of that. And now we're ready to do even more to accelerate our expansion and other points. So the growth we had from 2024 to 2030 will be based on efficiency. And on top of that, it will be combined with the acceleration of expansion digitally, of course, with good, good profitability. When we have capacity to do so. But when we talk about strategy, we believe that, you know, there is something that says culture eats strategy for breakfast. You know, we believe, you know, if they're not aligned, yeah, it could be, but we get really, really, we're really concerned about working with culture and strategy together, you know, so they don't like overtake the other, but they can go hand in hand and both of them can succeed. So we developed our strategic plan. We made adjustments to the essence of our culture, but we made adjustments in terms of the evolution of culture aligned with the strategy. Also, the metrics, as you say, you know, long-term and short-term incentives, they're all aligned with this strategic plan, the new organizational strategy, processes, and sustainability. They all converge, you know, they're all stated in this plan. But to talk more about this, I'd like to invite our Vice President of People and Sustainability, Regina Durante. She's going to talk a little bit more about it. Good morning, everyone. I'm Regina. I'm going to talk to you about our people and sustainability strategy. Our strategy, you know, is grounded in four pillars. We start with the idea of cultural evolution. You know, our cultural evolution is in line with the corporate strategy. That's why strategy and culture go together. At Renner, we have established new organizational values, you know, as we have revisited them in a short period of time. And among those values, we chose five. It's important to remember that our purpose here will not change. We want to delight customer. This is what we're here for. And because of that, we have strengthened one of the most important values that we have, clients and customers. That's what we are here for. They are at the center of our decisions to give them what they really want with technology and innovation. The second value is high performance. We know our culture at Renner. See, it's a culture of beating expectations, and high performance elevates that even more, raises the bar even more, you know, because we want to deliver results with more quality, speed, and assertiveness. The third value is people. This is one of the values that are most important for us because we are a company of people, of people to people, and we need to take care of our staff members, giving them an environment, a diverse, inclusive environment for high performance. Fourth value is sustainability, you know, which is today a future, which builds our future. It's the value that ensures that we're going to be there longer, and the fifth value, leadership, you know, the value, which is the propelling agent of all the others and all the behaviors that are associated to it, because leadership is the role model, is a guardian of our culture. Leadership is what makes and develops our talents for today and the future and also ensures that we are always leaders at the forefront. Second pillar is performance management. Here we have two major types of incentives that are aligned with the interests of stakeholders and corporate strategy and executives and staff members' interests. You know, these are important leverages to retain people. The first incentive deals with short-term goals. You know, we have a trigger, you know, the operating results, our EBIT, same thing as main indicators. We have the net operating revenue, free cash flow, and net income. In terms of long-term incentives, we have the following indicators: earnings per share, ROIC, and relative TSR. Our third pillar is organizational structure and processes. You know, this pillar is embraced by our corporate strategy and evolving and has been giving good, effective results. We also have the right team. You know, our team is engaged with 89% of engagement. We have a team that wants to be in the company with 95% of retention among leaders. Our team grows and develops with us with 66% of internal performance in the leadership positions. Fourth pillar is sustainability. You know, it's got ramifications in three major areas. The first one is sustainability and climate solutions, climate circular and regenerative solutions. Our main goal is resilience, you know, and we are very proud to remember that we were the second company, number two company in the world to adopt voluntarily the IFRS S2 report. We are also very proud to say that eight out of 10 power pieces made by us are sustainable. You know, the second pillar is human relation, human and diverse relations. Our goal here is to have a real image of Brazilian society in our staff so we can offer them selections and experiences that are even more delighting and more assertive to them. Today, we have 62% of women in our leaders, 48% of women in high leadership positions, and 34% of Black leaders. Third pillar is the pillar of connections that amplify. It deals with our long-term partnership with our supply chain at national and international level. The strategic partnership is important because it makes our suppliers, you know, have a unique methodology with us and so they can get all the support they need for them to have like social environmental practices, but also managerial practices. Like globally speaking, you know, the best that we have to offer to those suppliers and their management improves too. Today, 100% of our suppliers are certified both nationally and internationally. With all that strategy that I have just mentioned to you and with all the indicators, people indicators, we are certain and we're sure that we have the right strategy and the right people and the right team to deliver even more value to stakeholder and carry out this strategy with certainty. Now, to talk a little bit more about the strategy and give you details about what's next with Renner, please. Let's see. My colleagues will be here with you. Fabiana Taccola, Renner VP, Renata Altenfelder, Gustavo Yuasa, Paula Mazanék, and Alexandre Aires, our supply chain director. Thank you. Good morning, everyone. Welcome. Now we're going to drill down together at BU Renner. We call it BU, but that's our brand, you know. To talk about Renner, I would like to remind you, you know, what we're talking about. Let's talk about this company, this brand, you know, the heart of our fashion here. In Brazil, we are the largest fashion and lifestyle brand in Brazil. Remember, we, you know, we work together with our customer. We love them. We connect with them deeply. And we are recognized as a company with a feminine soul. And to talk about feminine, so I'd like to remind you, most of our customers, over 75% of them are women or females. And they're more or less like they are ranging from 25 to 50 years old, vast majority of them. And they live and they're like upper middle class and middle class individuals mostly. But we also cater to not only feminine audiences, you know, we are a family store. We work with things for men. We work with cologne and perfumes, beauty products, accessories, shoes, kids. We're very comprehensive. What's unique about Renner in relation to our competitors? I think, you know, people, it's important to remember that what makes us unique is the way that we translate collections. That's what we call the lifestyle methodology. This is more like, more or less like, how do you get information that is out there in several systems on the planet and translate that into assertive collections that delight our customers? You know, this methodology, the consistency of this methodology year after year is what makes us unique. You know, Fabio mentioned it, you know, sales square meter is so high. How do we get that? That's not enough. There's more to it. We, you know, there's that nice part, the Brazilian aspect of it. You know, what makes us Brazilian is the deep knowledge that we have of our clients, of our customers. You know, you cannot make caricatures of that. You know, we work real hard to translate fashion with the Brazilian influence. Something very important too. We are recognized by our customers for the quality of our products. This is a reference. We are a reference. And of course, no less important is equally important, you know, for our customers, our value, our products have an aggregate value that is really, really high. And this gives us, you know, this makes us accessible to them. And what does that mean? You know, people, I just as a reminder, Lojas Renner is not only the largest brand of fashion and lifestyle in Brazil. It's not just the largest retail, fashion retail store. It is the most valuable brand in Brazil in terms of fashion and lifestyle. We are the most beloved store and brand. We have the largest number of followers on social media. Our top of mind, you know, is almost twice as big, as large as the second, the runner-up. You know, our competitive NPS among the omni players, you know, we have the largest NPS clients recognize us to a certain. And our share of voice, of course, is really big. Fabio mentioned the cycle. What comes next? How are we getting ready for that? What's the cycle of growth? And to talk about it, you know, the major goal of this new cycle is to evolve from a recognized retail brand to a fashion brand. You know, there's something that we say here internally, you know, we talk about purchasing at Renner, purchasing at Renner to purchase Renner. And then there are three pillars in this scenario. We're going to work with the products and delighting experiences, and we're going to deal with the responsible fashion brand. What do we expect to get out of it? To continue growing in terms of number of customers, to continue growing, you know, having loyalty to our customers, you know, increase the conversion and average expenses. You know, we're the largest store in Brazil in which customers spend more. You know, what else? We're going to be loyal to them. We want to bring them to us, but mostly, you know, we're talking about, of course, increase stock, the margin, and other things. But the most important thing here is to be the most relevant fashion company in our customers' wardrobes, in our closet, in their closets, to have the largest number of pieces in their closets. This is what we want. And to talk a little bit more about it, you know, it's very important. Our first pillar. Renata is going to talk about the first pillar in our responsible fashion. Thank you. Good morning. I'm very happy to be here with all of you. And just to start, I'd like to talk about the brand, Renner, the brand. I'd like to show you a video. And so that's it. This is where we're going to stay. We're going to stay in the middle of it all, you know, between the desire of being myself and the fear of being myself. When did our major expression tool become this? Let's imagine the fashion that we love. With, you know, let's imagine, let's sew, let's take risks, let's mix, let's try out, let's revolutionize. Oh, and breathe. You can reinvent how to do with fashion. Renner has been around for a while, and it'll help you how to experience fashion your way, your rhythm. Please be yourself. Fashion is just the beginning. This manifesto was released in March this year as an invitation for our customers, you know, to recreate the way they see fashion with more authenticity, originality, lightness, with the freedom to be who they are. I'm very proud to say that all the images that are in the video you just saw are images of campaigns that were released after this new platform, Be Yourself. Ou seja, você. But we're here to talk about this strategy. How are we going to construct this new moment? How are we going to evolve into this fashion brand? First of all, we're going to work on delighting experiences in every single point of contact and the omni experience. I know customers, we don't use the words on and off anymore. They are, they have merged. These experiences bring us some narratives that talk about fashion, behavior, sustainability, which is something that's been growing in importance in terms of purchasing decisions. Almost 70% of the people in Brazil today consider fashion, some fashion attribute, consider sustainability when they connect to a fashion brand, and so we gain a lot from it, so we are the favorites of these customers when we do that. Also, we're going to reinforce our fashion expertise. We know a lot about fashion. You know, our lifestyle fashion, you know, we translate fashion for our customers, for what they want, and we are going to do that by connecting with cultural moments and moments of the cycle of fashion in the country. Because, you know, fashion is culture. Also, we're going to use several data, you know, artificial intelligence to boost the emotional connection with them and talk to these customers even more. You know, how are we going to connect with them? How are we going to give them relevant information that they need? You know, customers today, their journey is not like, it's not like steady. You know, today's things are very fluid. And also, we know who these customers are. We know these girls. How do we know them? How do we activate our retailers? You know, first, we're going to look inside, purchase information, market information, demographics, what's happening on social media, what is happening in culture. Also, we're going to, we also do research, very specialized research into fashion, NPS, what they expect, what customers expect, what they believe. What do they believe? You know, we always say that fashion is an expression, tool of expression. When we get dressed, when we, you know, we want to communicate something, even when we believe we're not thinking about it. And so whenever we talk to these women, what are they telling us? They're telling us that their journeys are fluid, they're multifaceted. Fashion is something very important for them. Yeah, it is. And they know that Renner is the most important brand connected to quality. And you know, these figures here on the left make us very proud. When we released our platform in March this year, we did some research. And since we released Ou seja, você Be Yourself, it grew 25 points in recognition as a brand that not only sells clothes, but is authentic. We know fashion, we are original. We have a lot of quality. Knowing who is this woman, this consumer, and what they are looking for, how do we get to them? First, we create these clusters. Don't worry, it won't be one in each box. You change the box during the day. But we create these clusters of behaviors of the consumer. We create content based on this, and we distribute the content in different points of contact, media points of sale, digital, SAC, an event like this. For every point of contact, you need to bring this information. And this has brought results. Our base of customers here, I'm talking about the brand Renner. Fabio was talking about 20 million customers because we're talking about all of our brands. 19 million customers is the brand Renner. It's a base that grew 16% in the last two years. Grew our omni base, also the consumer that buys on digital and physical. And in very important data, we grew 33% in base of loyal and ultra loyal customers. They come more to our stores, the brick and mortar or online. They buy. The average expenditure is over four times as high. We have a very strong brand. We know a lot about our consumer, and we're doing, we're making this invitation to recreate and transform the way he uses fashion, and Renner should be his tool for expression so they can say who they are. I'm sorry, the audio is very low. Here, I want to take a step back. A step back, remember a bit our normal curve of fashion trend so I can show a bit where Renner is positioned. When we look at the normal curve of fashion, Renner is exactly here. What is Renner? Renner is a trend launcher in terms of fashion. We are positioned before the hype, so it is not the trendsetters, so-called the fashion creator, and we approach the entire mainstream, but we position ourselves here due to three important reasons. First one, the majority of our competitors is in the mainstream, the majority of them, so being here in the launch before the hype, you have a capacity to capture value that is higher. The second important point of this is that we are always testing product all the time, and you can discover there's a lot of analytics here, many tools to find out what are the products that will go up, that will explode, that will become hype, or the potential products that will become hype, and having this before the hype, it's an avenue of opportunities and advantages, and there's a third point, more important for me and for us, is more relevant. The mind of the consumer, he starts to perceive that Renner has products that are a trend before the competitor. The visits are more frequent. And you have that mindset of the customer, the brand, a fashion reference and lifestyle reference for this customer. Talking about a productive process, how is Renner? How is Renner? We must remember we have long term, big collections. It doesn't have to be urgent. We prepare for what we choose as a trend, forecast and plan the next season of our collections, big volumes, essential products. This is in long. And you have the in season. And on in season, basically, we have two big blocks of creation of products and collections. First is short term. Short term are smaller collections produced and delivered on that season. Why? We have collabs. You have a space that you leave in your portfolio to be able to react. The more in season, the better to be what? More assertive regarding the consumer expectation. The consumer is being super bombarded. It has information about fashion all of the time. The companies don't have the exclusiveness of information, and some get prepared for this, and many things happen in that season itself, and this process is important. Open portfolios that we work strongly on, and we have the reactivity also, then we're talking about the fast trends. Eventually, you see concerts, a soap opera series, people that are doing something, cultural events worldwide that sometimes something explodes a certain trend, something war, somebody wore something and that exploded as a fashion reference company. That's very important to bring and make available to our consumer, then we use reactivity but not only for that. We use reactivity also when we're testing all the time in the productive process. We're understanding in small batches what is a nice product before the hype. We also scale these products that were assertive. So reactivity for us is to scale product and it retrofits the short and eventually depending on the trend that we observe, it can become even a long term and next season in larger scale. Guys, against reactivity, I give you a few numbers. We started with 5%. Now we're in 20% of domestic. The big objective is to be between 30% and 40% here. Of course, gaining margin, stock turnaround, conversion that is stronger, bringing sales increment also. Capturing trends. We produce the productive cycle of availability of the customer, analyze very fast. This is an important tool. It's not just analyze the past. Remember, this is forecast. It's looking to the future and scale. I want to call Alexandre Aires to tell us how supply is supporting this strategy. Thank you, Fabi. Good morning, everyone. It's a pleasure to be here to present supply chain as competitive advantage, not just for Renner, but for Lojas Renner S.A. Our supply chain area has the ambition to connect the strategy of collection development product that Fabi just mentioned with production, distribution, and delivery for all of our stores and all of our channels. We do this divided in three big areas. An area is of sourcing, responsible for the management, development of suppliers in the domestic chain and international chain. A planning area and supply that makes the best decisions in terms of distribution of product, using technology, artificial intelligence to potentialize the use of our supply model through SKUs. Finally, a logistics area that is able to use the distribution centers and transportation, making the product arrive at the right time in all of the points, stores, and channels also. It's important to say that this supply chain is available to all the business units of Lojas Renner S.A. With this, we can develop an area that supports the entire company with scale, synergy, becoming a competitive differential. I'm going to talk a bit about sourcing. Investor Day of 2023, we signalize what would be the areas that we would act in the following years. I would like to share the advances we had in these areas and the results that we already captured. First, we work a lot in an active triangulation of the acquisition of cloth from the raw material suppliers and finished material suppliers integrated in our collections. With this, reducing the time that we have to develop the collections and have them in our stores. Also, we work intensively integrating the system and supply chain domestically, having visibility end to end, being able to allocate orders with the capacity according to the capacity of the supplier, more efficiently reducing issues of lack of capacity or inefficiency or making the chain anxious. We do this for over 50% of the domestic supply chain. Finally, we work also in the development in the local suppliers, investing over BRL 16 million through partners, 80%, BRL 80 million that generated the adoption of processes that are more efficient, renewal of our manufacturing domestically with 20% gain in productivity and an increase of gross margin of 1.5 percentage points in the 20 major suppliers of the company. If we add this up, we have many benefits. I would like to highlight one, reducing 26% the time of production of a collection until it's available. It's a strategic differential for the company, as Fabi just presented, the capacity to react fast to trends and products that perform in a positive way. Another focus of action of the company during the last few years was to work their supply model. We adopted a supply model through SKUs for all the products in the company. It's a winning model adopted by the main retailers in the world in terms of fashion, and it presupposes that we stop allocating or supplying the stores using packs, which are predetermined packs that we sent all the company stores. These are inefficient to meet the different demands that we see in the consumer market according to each store. Now we operate with an SKU model that allows us to customize specific grids for each store adequate for the standard of demand that we have in each store. The company doesn't do this now. We're doing this for many years, especially for the base and the middle of the pyramid products, basic products where we captured the gains that we mentioned. The gains generate an increase in sales because I don't have a stock break in a few sizes and I push sales in the stores and I stop having, I have bigger margin. I don't have too many sizes that are not being sold. With this, I improve the turnover in stock. With the new distribution center in São Paulo, completely operational since 2024, sized to support the growth plan that we see today, we can increase. We already increased the business model, the SKU business model for all the products. With this, the middle of the pyramid products and the top of the pyramid products, the more fashion products are operating 100% SKU. This implementation brought gains. Increase of the availability of products in stores resulted in sales over 10%. Fashion products increase, an increase of over 10% of the pieces, these type of products. To reinforce the benefits of the supply model, we prepared a video that explains the benefits compared to the per pack model, the previous model. Let's take a look. In this way, omnichannel distribution that uses the scale we have to supply stores, the capillarity that we have in all the states of Brazil, adding this to the e-commerce operation that has a relevant impact associated to the supply model that's precise according to SKUs, allows to support and is essential to capture the opportunities for growth that we have ahead of us. I'm going to mention a bit how this strategy, the combination of the two factors, the two strengths will leverage the strategies we have. When we talk about the increase in productivity in stores, the fact that we are able to have this sorting adequate for each store will result in square meter sale higher, avoiding excess and breaking stock. We have a better result in each store. The same way, the same supply model that's precise allows us to have a gain in sorting in all the sizes of stores, but the smaller sizes that suffered by pack supply that generated excess and didn't allow to restock in a certain size and now is more up. These have the higher benefit. We're going to see that in strategic leverage for organic expansion of the company for non-serviced areas. These size, smaller sizes stores are fundamental. Therefore, the supply model is an important enabler for them to be efficient and to support the future plan of the company. Finally, we have a leverage, which is the increase of penetration of digital. With omnichannel supply that uses the scale that we have in terms of stores, synergy technology operating integrated both channels, we reduce expressively the cost of the operation of the distribution center and the transportation. This is very important for a digital that does not dilute results to grow more in a relevant manner. Finally, when we enable its two components, omnichannel and precise SKU supply, not just for Renner, but for all business units, we create a competitive differential for the other units for the other concepts to grow in a relevant manner, in a meaningful manner for the company. I would like to finish here reinforcing that many results have been captured in this supply chain model, but the complete potential of the model has not been reached. We're going to reach the full potential of this model in the next two years. And with this, create competitive differentials, not just for Renner, but for all the business units and the channels that the company has. Fabi, Aires, thank you. Guys, let's look. People, let's look at our third pillar, the client experiences. And I think at this point, it's important to mention that, you know, customers. Let's talk about experiences to talk about customer experience, customer behavior. It's unpredictable today. It's just unpredictable. You know, you're not in that standard journey, you know, like a process. Then you go there and then you pick your clothes and then you take inspiration. It's different. It is just different. It's chaotic. You know, it oscillates. And when we look at it, look at a company, you know, a company like ours, we want to delight our customers. We want to beat expectations. Renner has decided to be an omni-retail, an omnichannel company because we want to ensure, you know, the same standards of experiences regardless of the moment the customer enters the store and regardless of the channel they are using for each moment. You know, we can't predict. We're going to have to work, address everything and everything. What is it? Is it about being a company that not only addresses and resolves problems? No, it's not like that anymore. But also to be a company that simply generates, it makes things convenient in the light, creates and generates, let's say, a company that creates and generates a sensation of accomplishment and pleasure in consumption and in fashion specifically. You know, this omni-retail today is very much related to that. And by being an omnichannel company, we know that we receive, realize great value in our customers. I'm going to give you some examples here. You know, we open stores in the countryside and big cities. So, you know, whenever we open stores, we get like a 10-20 acceleration of, in terms of the increase in digital sales. When customers purchase stuff digitally, 35% of that, they prefer to pick up in store because it's convenient, and 15% of that, they carry out an additional purchase, and 70% of the people who want to exchange their products, normal, it's only natural. They try something out. They want to use a different color or the size. Out of those individuals, 70% of the exchanges, you know, when they request digitally, they want to go to the store in person, and then 20% of them buy additional items. Our omnichannel base, you know, for clients who are in several channels, we grew over 11%. This customer spends three times more than a single channel customer. If they are a Realize, you know, customer, they'll spend six times more, and so here in Brazil, this is a reality. You know, it's really, really important. Of course, here we got a snapshot of this in our company, but for us, this is part of the process. You know, this omnichannel retail, our digital sales reached over BRL 2.4 billion, guys, 15% of our company. We also have over seven million clients, customers who are monthly, who are active each month, and for the sixth time, we are the best e-commerce company in fashion. Something very, very important here too. We have accelerated, you know, digital sales have maximized the company. It has contributed a lot. I haven't mentioned it earlier, but in more than contributed, it has become, it has materialized into revenues. You see, see those images there, those figures, and if we look at the market, you know, we have 15%. But when we look at Brazil as a whole, you know, the local omni players, we are way ahead of them, almost three times ahead. Go from five or seven, go to 15. But if we look at the opportunities in Brazil, in terms of fashion, we can get the digital sales can get in, you know, we have the pure digital players. We have room, there is room for us. And there's a lot more room when we look at the outside of Brazil. There are more mature countries than Brazil. This is accelerating, but has reached numbers, very high numbers. But I think the most important point here for us is our digital sales. It's not sales anymore or not about sales anymore. It's the largest, window shop, largest window for a company. We give inspiration, you know, we have a new trend almost every day. Today, we work with digital platforms that influences what goes to the runways and also in the store, in physical stores, you know, visual merchandising. You know, this is fully connected to it and most importantly, even more important is, when we look at it, it drives technology a lot, so of course, we talk a lot about artificial intelligence and stuff, but I'm going to give you an example. We have images and pictures of babies here, baby models. Of course, we have images with of babies, of course, but most of them were like still images. Like when we can using AI to humanize this model, you know, it drove over 60% in terms of visits, walk-ins and conversion, especially in babies' products, so it maximizes a lot. When we talk, you know, we had a recommendation engine. It's always evolving. This is a tool, an important tool. It's basic, but the most important thing here is to know how to use it and how much it is evolving into assertiveness. And we have also had, I mean, last year, we have over 135% of revenue growth driven by recommendations. And so, of course, we have like a virtual assistant, but we are getting ready for the most important point that is coming, which is agent commerce. So we're going to start to experience a reality in which we are not going to provide assistance to the end customer, but provide assistance to this customer's agent. And this is a reality now. And if you look at Renner, we are the number one in terms of ChatGPT searches. Good. Now I'm going to invite, let's talk about, continue talking about experience. And now we have Paula from Realize. How is Realize going to maximize all that? Good morning, everyone. It's a great pleasure to be here with you. You know, I see some familiar faces. I've had a chance to talk to some of you. It's really nice to open our doors for you. So we saw that Realize was in very important moments of the presentation thus far. When Fabio mentioned the lighting experiences and Realize as a boost in our ecosystem, when Renata mentioned the idea, the importance of faithful and loyal customers for us to, you know, connect with them better. And as Fabiana has just said, you know, she talked about the importance of Realize in the omnichannel strategy. But before we dive deep into it, it's important to recap on, you know, what we had in 2023 to the Realize today after three years. In 2023, we had a funding company with a hybrid strategy, you know, whose goal was to support the sales of our ecosystem, but also explore opportunities in banking and banking industries. And from then, we understood that was a moment to revisit that strategy because our vocation, of course, is to have our financial aspects totally geared toward the ecosystem. Why is that? You know, we know that we are in an environment with 20 million customers traveling around the stores. And that's precisely for this type of public audience that we want to have the best financial aspects in Brazil. And how we're going to do that? We're going to explore this, how we're getting ready for it to support this movement, this growth for the coming five or ten years. So let's start with talking a little bit about loyalty. You know, really, Realize clients today, you know, they come to the stores physically 50% more in relation to other customers who purchase any financial product. You know, they visit us more frequently. And whenever they go to our store, they spend 150% more in terms of, you know, annual spending. So this is proof that, you know, how much the financial product is actually a powerful boost for spending for expenses in our ecosystem. It's important to remember too that 55% of our clients, of the loyal and ultra loyal customers of Renner today, they have our cards. They all have our cards. This proves that, you know, how financial services can boost and propel sales and loyalty in our ecosystem. When we go to the omnichannel strategy that Fabiana mentioned, it will become more and more relevant in Lojas Renner, yeah, and at BU Renner, right? Today, we have the Realize app. It's embedded into the Renner app. If you use the Renner app, you'll see something like a tab card. And this leads to a high quality flow. There's over 15 million accesses, you know, in the Renner app. And every time they go there to check out the balance, see the limit, you see they have an opportunity to connect with our products and offers. And this can convert into a sale. But also our customers, those who have the cards, they are much more engaged than the others, three times more, you know, in relation to those who pay in different ways. And today, e-commerce sales comparatively to the customers who use other payment methods is 93 times higher. This means that Realize omni is like a perfect match. And we want to boost that even more. We want to make it even stronger as a financial strategy. And when we talk about data, you know, Realize brings data, data that retail itself wouldn't be able to achieve if there is, there isn't a financial company embedded. We have over 4.8 active customers and 99% of high reachability. What does reachability mean? That means that customers, Realize customers, they really interact with the messages we sent them, either push notification, WhatsApp, email. This is a very high reachability, way above the market. This makes us, you know, it makes it look like a Realize Ads, as we can offer our customers the offers, new collections, and they actually interact with them. Also, as you said, you know, today we have two products, two different cards, so for the cards with like Visa or Mastercard, they can also spend outside of Renner, so their expenses, they're spending outside of Renner. It's really important because we know how much they spend in fashion. These are very valuable insights for us so that we can move on with our credit model, but also to translate that into commercial insights for Renner in view of the law, of course. Another important point is the expansion of physical stores. This is a very interesting piece of information. When you look at the participation of Renner cards, you look at the consolidated per share, but in medium-sized cities, you know, the penetration is five points, 5% higher than in larger cities. Because in those cities, the population doesn't necessarily have like bank accounts, and this increases the purchasing power. When we talk about Realize in terms of expanding stores to smaller cities, this is a relevant boost, a very strategic, especially because our credit policies, you know, they're not only, they're not single for Brazil. We have evolved in terms of our models, and today we have credit models per region in some states of Brazil too, because our behavior of clients up north, they will behave different from the clients here in the south, cost of living, per capital income, employability in the state. This allows us to take a different action and be more assertive in terms of credit granting. Lastly, we also have a novelty here for 2026, and you're going to see it firsthand. We're going to release a new card in the second semester of next year. This new card is sustained by a complete revision of our strategy and model because it will have, it will be embedded into the Renner app, but also like in other digital cards like Apple Pay. There'll be an annual policy, annuity policy, you know, which is different from other clients. You know, it's going to be easy. You know, they'll be able to purchase using Face ID only. You know, they'll have a card, but when they get there, they'll not need the card. They'll just show their face, you know, using Face ID and exclusive rewards. You know, they'll become completely embedded. You know, we're talking about rewards that will be in our ecosystem and how do we do that from the structural perspective? Let's talk about pipes and connection of a financial company. I know most of you are bankers and you know that very, very well. First point here is quite innovative. This new card is a unique card. It's 100% like comes with like a Visa or Mastercard, et cetera but there are two credit limits which are independent. One for them is for client customers to use in the ecosystem and another limit for them to use outside of it. It's innovative because no retail financial company does that in Brazil. We're going to be able to calibrate things, you know, our exposure to risk to each profile client, but also we're going to be able to adapt the credit concession to the consumption profile of those customers, you know, our appetite, credit appetite and our policy. It will be oriented to expanding in the ecosystem. You know, we're going to prioritize that. You know, we're going to have like more limit, of course, but obviously if you want to improve our proposal of value for our most loyal customers and for those that, you know, make sense, we're going to be expanding credit to them because we believe it's important. As I said earlier, this brings information that feeds our credit system and brings important insights for Renner, and we have like evolved a lot in terms of governance. And I can assure you that today we have our governance is compatible with the, with that of major banks. And this makes you guys feel really, really safe as we can support our movement of growth. Lastly, I think it's really, really important to talk about the SG&A perspective. You know, more and more we're going to look for automation and AI more and more because we understand that this is an opportunity that we have to drive operational efficiency in the company. And obviously, obviously it will reduce costs. These changes, you know, that we're doing this, these replacements, you know, it takes a while. This transition will take a little while and our costs will be duplicated in this moment. So from 2027, you'll see that this will bring us more efficiency in terms of G&A. When we talk about the technological platforms, we're talking about preparing this company to have to be more scalable and have better performance. Lastly, our segmentation model, you know, it's innovative. You know, I come from the banking industry and we use banking information, bureau information, credit behavior, the model they offer and how do we grant credit. Here, our model is more advanced. You know, we have the traditional model that banks use. We also have begun using a different perspective, the client customer's behavior into retail. We know the parts they purchase, how frequent they purchase things. This is important for decision making. We're going to continue to be focused. We're going to continue focusing, you know, we have evolved a lot, but we're going to focus on low risk customers. It's really, really important to leave a message here with you. The financial company is fully prepared for to support this growth for the coming five or 10 years. And speaking of growth, Gustavo Yuasa will be here with you, our strategy director. Thank you, Paula. Well, we're going to talk about omnichannel. You know, we have excellence in digital sales. Our physical stores are and will be very, very important for Renner for the ecosystem. And we believe that, you know, the digital and the physical should go together. So we are always evolving. Every year there's something new. And since 2021, we have the Hemias model. That flows better. The use of technology, for example, to cash is a global reference. Many have approved. And the highlight to the product to fashion connecting with what Fabi said, but physically, for physical experience in our stores, the brick and mortar store is a competitive advantage. Inside the Renner, why do we have two models? RA Plus, Essential that has all the attributes of RA MICE, ReMICE with the choice of materials that's prepared for an expansion on the choice of finishing, wood, lighting that allows us better results, to have better results. We already have to separate the municipalities between 100,000 to 200,000 inhabitants. We have 90 stores that perform above average stores that we were already able with time to have a model that brings a ROIC that's positive, higher than average from compared to other stores. The essential model does even better. 15 stores in Brazil up to now that have this journey of ReMICE that brings CapEx with better, even better results so the 15 stores, a few examples we have in Icó, Passos, Caldas Novas, cities with a high potential of purchasing and we're doing this expansion in Brazil. Renner concept brings the essential Renner with another experience, a sophisticated store that's evolving little by little. It's going to be the store that brings not only the experience of Renner, but a building of image, positioning, brand, fashion. A few examples like there's a lounge when in the improving proof and social media stores that are more sophisticated, maybe not over Brazil, but we already have 70 of these. Every year we enhance the model since the first store until the latest. We evolve and we continue to evolve. It's very dynamic. We have Morumbi, Shopping Morumbi, Shopping Ibirapuera in Brazil and Shopping Dom Pedro. The most advanced store, more complete stores that we have in this model, this concept model. Renner Essential brings returns above average here. We're refurbishing store, the existing store where we apply this remodeling. We invest in the store. It brings sales, brings ROIC 5%-10% incremental sales every store that we refurbish. To see this model better than these two images. I'm going to play a video for you. Invite you all to visit our stores that are online also. The Americana store and the Morumbi store are two examples of what I showed you here in the back. Americana store is essential. It's the same model that we're going to use to expand in the next five years. We want to open between 140-170 stores, only Renner stores, only in Brazil. It's a part of the acceleration of the expansion. When we do so, we're going to reach, we're going to fill 100% of the cities above 200,000 inhabitants. So we're going to be present in the biggest cities of Brazil, starting from 90-100. We're going to fill this space. And the focus of the expansion will be between 100 and 200,000 inhabitants, considering micro regions where we are already present. As I said before, we have 90 stores in these municipalities, and we will reach 70% coverage in these municipalities, bringing a qualified demand, additional qualified demand of BRL 20 billion reais. This is the market of a profile, a social class that we understand that is addressable, that is very similar to what we have today. It gives us the trust that it is an addressable market, reachable, possible that will bring a lot of results to the company. So much so that the 15 stores that we created, the essential model are bringing the results. We monitor this in a very disciplined way because, as we saw today, these are new municipalities. We do not have a comparison to other existing stores. We potentialize the digital store, the omnichannel. Paula talked about Realize cities where the card is even more relevant. The supply model per SKU for this property is even more important. The precision of sorting in each city that we enter is even more relevant. Everything that I explained for this model is a difference. It's a differential. The expansion is a pillar, strategic pillar. As I said, physical brick and mortar store is important for the composition of the omni strategy. We're very, it's the highest capillarity brand. It gives us steps ahead of the competition. It differentiates us from the domestic players and the native digital players. Fabi, The floor is yours. Thank you. Yours, thank you, Gustavo. And here we finish. But before we finish, let's talk a bit about results. We said many things. It gave you some numbers, but let's do a wrap-up so we can understand a bit. Fabio mentioned, and this is very important, that we already have collected the results since 2024, the results of the investments we made. So we can clear this looking at the nine months, taken as a base to nine months base, customer base. I'm going to use 12 here. We use the active base. Active base last 12 months. We grew over 16%. We already increased the spending, average spending of our consumer in 10%, 24% increase in the inventory turnover. And we're talking about growth, continuous strong growth of sales square meter. you might say, but you didn't grow in brick and mortar, only accelerated digital. Guys, omni retail, it's on the omni brand. It's the future of the business. This is relevant. This is our proposal for our consumer. And here it's over 20% growth. The main thing is what's to come, what we expect of Renner going forward. Again, evolving as an objective for a fashion brand. Besides a retail, fashion retail, it's a reference fashion brand, accelerating our expansion to continue to enter in Brazil that has our target audience, ABC. It exists, and there's a lot of potential out there. Growing our total base of customer, not just conversion. Grow, grow the base, grow the base, grow the omni base, having opportunities, especially gaining productivity. Sometimes you might not see it, but we see it since 2024. We're capturing and we'll be able to scale even more going forward. And of course, supporting in a big gigantic space of digital with more profitability now, having the possibility to increase growth. Also, thank you so much. I finished now. Renner, our brand, Renner. Now invite Gustavo and Barone to talk a bit about the other concepts and Youcom. Let's go. As you saw, we have a detailed strategy for Renner S.A. that we saw more details, the strategy of Renner, which is one of our concepts for the strategy. Part of the strategy is how to expand the core, not just Renner. Renner is very important, yes. But for us to expand the core means also to evolve the other concepts because this way we can meet demand and opportunities that are specific of our customers, over 20 million customers that Fabio explained and even more going forward. The concepts are a strategic pillar, and we do this in a disciplined manner following three big stages. The first one, the understanding of the opportunity, how we can understand the customer. We are the fashion brand that understands the most the customer, the trends of our base, and the potential of Brazil. From there, we can do experimentations. We have a fortress of international sourcing that we can use to test, experiment, be it in existing concepts or new potential concepts for Renner, and its capillarity can be used to do a store-in-store, a way to experiment fast using all of the capillarity that we have to scale the concepts, existing concepts, and possible future concepts. We use this investment, platforms, technologies, digitalization, and data, the entire supply model that we apply in all the concepts. It leverages the ecosystem. We have a unique position in the market to accelerate the current concepts and potential new concepts for the future. Youcom is an example, an organic example created many years ago that is successful, that went through these three stages. Youcom is a case. It's a way to look at the process in a way that works and can be replicated. We don't have just Youcom and Renner. We have an ecosystem with different concepts, each one servicing a different public with a growth strategy that's adequate. Today we're talking about Renner and Youcom because these are the ones that we see the next five years, generation of value, growth in a more accelerated manner, but all of them contribute for the growth of the ecosystem. To talk about Youcom, I invite now Barone to explain the Youcom strategy for the next five years. Thank you, Gustavo. Thank you, everyone. My name is Claudio Barone. I'm the director of Youcom and Ashua. It's a joy to me to talk about our Youcom. Youcom was born from a world reading, a reading of behavior, especially a reading of opportunity, market opportunity. It's this pyramid, the starting point in the past when we started to design the brand. This was the structure that started to connect the dots and started to make sense for us. Youcom was born exactly in the middle of this pyramid, but initially we divided the pyramid in two blocks. The top part, we put the specialized brands, brands that had certain characteristics and the public that had certain characteristics, normally with a strong aspiration, with a high experience, exclusiveness, higher prices. In the lower part of the pyramid, we put the big chains, the big networks. Here, the competition for price is higher, elasticity is harder, scale is important, and brands that have a high reach, they reach many people, many consumers. As I said, Youcom was born exactly in the middle of the pyramid, not as a middle ground between the two universes and the two worlds, but yes, as a big opportunity, a territory where we can deliver an experience and an aspirational that are so strong as a top group, quality perceived that is interesting and simple for a team and for a public. Prices that we understand are higher than the lower group, but more accessible than the higher group. With time, Youcom starts to gain a bit of the strength from the bottom group, with more scale and more reach. Youcom is getting to more people, young people. Now, an important design for the brand, our heart, our core, everything that we do in the company, we do through this design that initially was done in 2018, 2019. In the middle of the heart, there's a word that defines Youcom, which is young. Around the heart, we have the main attributes and all the areas of Youcom. When we think about creating anything, we create from here. I'm going to talk about some attributes, and I won't list all of them, but Youcom is fashion and lifestyle. Our target audience is between 18 and 24 years old. Obviously, they interact and buy the brand 13 years old, 14 years old, 28, 38, 48 years old because they identify with the young lifestyle. I also bring that everything we do is looking at what happens in the world. We have a lot of global inspiration, always bringing for a local translation. Why? Because the youth in Brazil has their own code, their own DNA. Youcom understands and speaks this language. Destination jeans is our key category. We are moved by it. Jeans is a young, fresh raw material that's 70 years old, but it continues to be relevant in the young people's closet. It's a great piece for the fashion for this public. What makes us very proud is responsible fashion because the public commitment from Renner S.A., our public commitments of Youcom. Moving on, I remind you that the first stores, Youcom stores started in 2013 to test a hypothesis, the same hypothesis we had in the center of the pyramid. Once we tested the hypothesis, we start to scale the brand. This plot shows the evolution from 2014 to 2025. Sales are in constant, September LTM. In yellow, I have the evolution of the stores, plots that show a constant evolution, how much the model is strong and how the model is scalable. Now, this speed was only possible because we have worked a lot to make things happen. More than talking about the past, it's important to talk about the next cycle. We have four big pillars, four big avenues that will pave our future. First one is the opening of stores. We understand that the next cycle will arrive at 260-290 stores in operation. We have 152 currently. We understand that the digital has an importance in Youcom. It will gain more importance for the youth. It starts, he connects to the world through digital. Regarding the brand, the brand is gaining strength. It's becoming robust. The brand evolved a lot. We have a clear plan, robust plan so that the brand continues to gain strength and reaches new territories with the years, and lastly, I would like to highlight to you the importance of productivity and the increase in sales areas. We have a large number of new stores. This year only, we opened 17 stores. When you look at all the new stores, you know there's like 30% of those stores are at the initial cycle of evolution in terms of productivity, but they will continue growing. We're going to invest in it. On the other hand, we are all stores. You know they have enormous potential with major results, major sales square meter, and with profitability. In these cases, we can negotiate. You know we have some ambition. You know something really important for the brand. I'm going to show you something here. In 2013, we opened a store in the Anália Franco shopping mall with 110 square meter. After some time, it evolved. It grew in productivity. It became more profitable. And then after five or six years, we got to 190 square meter. We evolved a lot. We increased the area, got bigger and larger, and the store became more profitable in terms of sales. And two months ago, this store was reopened with 350 square meter. So we have done very important things to increase the size, expand the physical spaces of stores. This happens because you know the brand is more mature and also because the market mix has been evolving. Also, all that was only possible because Youcom is part of a robust ecosystem, which is very, very strong, offering us several advantages, you know very important advantages. Some of them are here, you know like SKU, 100% fulfillment, 100% by SKU, international sourcing, technology and data and shared services. Those are some of the examples. On the other hand, Youcom plays a leading role in the ecosystem. You know we make things fresh. We have a young base and bring them to the ecosystem, and we contribute to with a number of things, but the most relevant of all those things is that Youcom has created a model which is specialized, specialized store, which could be replicated. This is important, you know an exchange between brands and ecosystem. I mean, look at the exchange and the evolution. I see the future, and the future can be brilliant and bright, and now, just to wrap up, I want to bring you some figures which make us very proud. Our base, we have over 1.7 million customers, an active and solid base. It's been growing in terms of quantity and quality. When we look at NPS, either transactional, other competitive, you know we operate in the zone of excellence, better than the other players. We don't specialize or massive players, and NPS shows how much clients, customers recognize our efforts, our dedication, and most importantly, the consistency of the brand. In relation to social media, you know Youcom performs a lot better on social media, and I'd like to mention something here. When you look at 2025, TikTok, you know Youcom, among the specialized fashion brands, we are the brand that shows more engagement than the others. Here we got the customer base for extra information, but Youcom is much more than that. It's much more than numbers. We have building things in our everyday life. You know we got a very large base of young customers. They interact, they purchase, they buy, they take an active role, and they identify with the brand. So that's all I had to say. I'd like to invite you guys to watch a video of our brand, of Youcom. Kids are always changing, and so is Youcom because this is what it's like to be a brand. It's to be getting updated every day, know what's happening in our lives and on social media, and obviously jump on TikTok, start trends first. Done. Thank you. Now I want to wrap up with this session, and I would like to invite our CFO, Daniel dos Santos, to come to the stage. Good morning, everyone. Okay, oh, let me make adjustments here. First of all, thank you for being here. It's a great pleasure to see you here in our home. I'm going to talk a little bit about how this financial journey is going to look like, how we can monitor that to generate value. First, before I talk about this new cycle, I would like to invite you to talk about the past because you know the growth cycles that we had in the past will help us understand what we expect from this new cycle. The first cycle runs from 2010 to 2019. This cycle, the company grew 14%, mostly driven by sales areas. You know we almost, by area expansion, got almost three times as large. We opened stores in new cities, in major cities, major urban areas. You know it became really dense. When things get really dense, sales square meter in physical stores, they grew less than the inflation, you know because we had cannibalization. The new stores ended up like taking over the old stores. The investments invested 9% focusing on the new stores. And on the next cycle, from 2020 to 2023, we grew 8%, which was mostly boosted by the digital sales. You know that was, it went from 4% to 14% digital share, almost three times as much. And another feature of this characteristic of the cycle that Fabio mentioned earlier was the investment, were the investments that we made in new capabilities. Those capabilities were intended to make the company more agile, more flexible, and more competitive. And I'm going to get into some specific details here of this new investment cycles. You know where we invest, make investments in, where we made investments in. We had a total investments of BRL 2 million in that cycle. We invested in CapEx and OpEx also. When we look at the investment blocks here and for digital share in terms of capabilities, we invested in a new omnichannel platform. We invested in it. We invested in new features either on the website or on the app. We digitalized our fashion development in logistics. As Aires mentioned earlier, we have a new distribution center, you know, but not only the center, but the new model like the fulfillment by SKU and our distribution center of Cabreúva. It supports our expectations for this new cycle until 2030. It has been built purposefully for that. Data analytics, we use artificial intelligence applied to automation, process automation, and decision making and structures and skills. You know, we have the new data service, technology service, technology divisions to support the AI journey. CRM, you know, we have a studio. Yeah, this very building, you know, this video makes like very several content, several videos, and we made investments in the digital structure. And I want to build on what Fabio mentioned. Well, these investments, they give us a result. But when we look at the evolution of the past two years, you know, we grew more. Our total sales as a group, the omni sales, you know, combining retail, physical retail and digital stores, it grew 19% square meter. we became more profitable with a gross margin of 2% in the same period. Expenses on sales decreased 1.1% and our EPS grew 59% in the period. When we look at the capital structure, you know, higher returns, our cash flow went from BRL 0.7 billion to BRL 1.5 billion. The financial cycle, of course, specifically inventory days, 15 fewer days. And our ROIC aligned with our structured capital. It grew 4.6%. So that's an evolution that makes us really confident that with the new cycle, which I'm going to bring information for you now. What do we expect from this new cycle? So first of all, we expect to increase, generate, grow, generate value, have more profitability. And as I said earlier, you know, we expect to grow from nine to 13%. And this growth will basically come from BU Renner, like in terms of area expansion, store productivity. It will result from area expansion, store productivity, and increased digital sales. It will also be boosted by BU Youcom with investments of 6.7% over the course of this period. Now, I would like for you to take a look at this slide. Let's talk about these growth levers, you know, the expansion model, you know, in new cities. Gustavo said something about it. You know, we can see opportunities from 150 to 170 cities in which we can open a new Renner store. This shows a high quality demand. You know, high quality demand is like a demand involving the social group that we were operating on, and so if we apply the average share, we can have like an incremental opportunity of over BRL 2 billion, incremental sales without cannibalization. You know, given that in these cities we're getting into, there is no Renner store. Something very important here, 90% of our stores, we have 90 stores in over 90 cities with a population of over 200 million people. This is not a new model. It's been going on for a while, very successfully. Some indicators here that I can talk about, you know, the profitability indicators. When we talk about this group of 90 stores in those 90 cities and compare them with the others, you know, first of all, they have a gross margin, which is superior. Second, they have a cost of operation square meter, which is smaller, lower than the other stores. And combined with the fact, combined with the idea of essential store, you know, they have all those features, all the items that are necessary for us to succeed, to delight the customer. You know, with a CapEx square meter, it's super competitive. And the combination of all those factors allows us to have a ROIC, a return on investment, which could be of up to 2% above the other stores. We obviously, we have an SKU model of fulfillment, which propelled this new model of expansion. You know, we have a capability to feed the stores with more precision, with like a personalized assortment for them. Without a shade of doubt, this can propel the performance of these new stores. Another point here is our omnichannel. So let's think a little bit about the evolution of this omnichannel. When we look at the past, the digital channel had like a 3% per share in it. And then one of the characteristics of that is the cost of serving above the physical store. And several investments that we made in from 2020 to 2023, and actually the last movement that we made when we internalized the digital into the Cabreúva Distribution Center, you know, it allowed us to reach the end of 2025 with a cost of serving, which is similar to the cost of serving in physical stores. So for the company, for the journey that we have ahead of us, the company will be, you know, it doesn't matter for us, you know, customers can decide where they want to buy and purchase, either in the digital store or the physical store. Our expectations, well, in terms of growth, we want to grow with the digital channel above the average. You know, this will propel all the other items that my peers have mentioned earlier. Another growth point of growth here is the productivity gain. Well, you know, productivity, omni productivity, and Fabi said something really important about it in her talk. You know, omni productivity is a combination of our growth from the digital aspect with the increase in growth in physical stores. So why is that important? We see, you know, all throughout this journey, you know, in the first cycle, things became really, really dense. We got new stores very close to the existing stores. In the second cycle, we converted the clients, you know, they began to share their sales journey on social media, and then lately, the management managed to boost, you know, they managed to show a productivity gain in omni productivity, of course, which is quite relevant for what we expect, and we are confident that it will continue to be this way. And on top of that, in addition to the productivity gain in mature stores and digital sales, we have the expansion into new cities, which I believe Gustavo Azevedo and I mentioned earlier, and this productivity gain is a major element of our journey, profitability journey. You know, this productivity gain will allow us to boost our operation and allow us to continue reducing the expenses on income, on revenues. Let us not forget Realize. You know, Paula talked about it. First, the major focus of Realize is to help retail, is to boost, propel retail with an integrated journey, as Paula mentioned. You know, have the integration of Realize with the retail, bringing experiences and benefits to clients in a way that Realize could help us increase our customer base and make the existing customer base purchase more and more frequently. Another point that Paula mentioned is the execution of this strategy. How are we going to do that? First, we're going to look for low-risk customers focusing on the portfolio, you know, focusing on the purchase, on the sale at Renner, at the store. Our expectations concerning the operating results is that it will be around 8%-12% of the total EBITDA in the coming five years. Youcom, as I said earlier, you know, sales growth higher than Renner. We expect Youcom to grow, be above the average and increase profitability, so basically, in expansion of stores, the example that Barone mentioned, you know, their older stores need to expand them, and so they have an incremental sales, incremental share in the digital channel. As for profitability, we have gross margin gains, and then operational leverage. You know, this is the fruit of our labor, you know, we can see here. We almost have like twice as many stores over these past years. We expect from Camicado a growth above the average of the market where Camicado is located because it's home decor. This growth will come from expansion of stores, selection of stores, and remodeling of stores, and a continuous increment of the share of digital sales inside Camicado. Regarding profitability, we expect that Camicado will follow to continue to grow in profitability. Camicado, we remember in the Investor Day, we presented the team the great success in the execution strategy through their own brands, exclusive brands. Also, today from the sales of Camicado, around 85% of sales are their own brand or exclusive brands. This allowed, besides the customer experience that is a lot more delighted with the sorting that we have that's different, allows a differential of the sorting we have versus what we have in the market, gaining profitability or sales square meter when we compare to the base of 22, increased in almost 27%, and our gross margin increased 5.2 percentage points in the period. Adding now, looking at the indicators that we follow in this journey, first reminding you the big objective of the strategy is to scale growth and value generation with profitability, and the indicators that will guide our journey that we shared as a relevant fact earlier today was first the annual growth of retail revenue of 9%-13% during these five years. Second, continuous gain in gross margin. The representativity of retail expenses on top of the expenses in retail, we have, we expect the reduction 2.5-3.5 percentage points for 2030 compared to 2025. This journey is the objective we have until 2030. Margin, EBITDA, retail Pre-FS, close 2030 in the range of 15%-20%, above 18%-20% above the period pre-pandemic, more efficiency of capital, be it, as you observed, CapEx that we expect is lower than the growth in sales. We have efficiency regarding the fixed capital of the company. Also, the financial cycle especially motivated with the gain of inventory days. With this, we reach a return on capital of 20% by 2030. This is when we add all the indicators, brings us to this big evolution in return of capital. Talking about capital structure now, first, let's look at the trajectory of the company. First, the company has a strong balance sheet when we observed the last four years. There was a lot of work of lowering the level of debt and keeping the level of cash flow that we believe is adequate to run the operation, be it the retail. We have a strong, consistent cash generation above BRL 1 million. We were able to do a strong distribution of profit to the shareholders. If we look at the last four years, this shows that we returned BRL 4.6 billion through interest on our own capital, IOC, or through repurchasing plan. In the year 2025, it was BRL 1.7 billion when we add everything that we did this year with JCP that we communicated this morning earlier. We have BRL 1.7 billion, more than 100% of the profit expected for the year 2025. Moving on, when we look at this new cycle of growth that we expect, first, growth with gain in productivity, gain in profitability, CapEx around 6%-7%, 6.5%-7%. What we have as a result, this will generate profitability. We generate strong cash flow, and we believe we will do a capital distribution of profits to our shareholders above the market average. How will we do this? A bit for us to understand the logic of how we're going to do this. First, we will continue to have a strong balance sheet that allows us to have flexibility and prudence. We want to execute first the plan that we presented to you and the eventual opportunities that we can see in the next five years. At the same time, have consciousness of the cyclical business seasonality. It's a characteristic of our business, and we must be flexible. Besides this, to deal with political environments or macro environments that are diverse that we can have in Brazil, all of this gives us the clarity that we need to have a strong balance sheet and have flexibility to operate in this environment. The plan that we presented to you is a plan where the generation of cash that we have in the period. We can sustain it with the cash generation itself, six-7.5. The CapEx is observed with a strong cash generation that we have in the period. This way, we don't need to leverage to execute the plan that we presented to you. What would be our strategy of capital distribution? First, we will prioritize JCP, IOC. So there's a fiscal benefit that's important. We will exhaust the IOC first. We will complement the distribution of dividends and/or a repurchasing plan, always limited to the profit reserves that we have and/or our minimum cash. This is necessary. The company believes it's necessary for the retail operation and the financial institution operation. Another important point, we have seen some provocation regarding leverage for an eventual distribution or capital distribution. Continuously, we do internal exercises to look at our capital structure to see if it's optimized or not, to see the best way to give return to the shareholders, especially leveraging and reducing capital. We evaluated, and the conclusion was it doesn't make sense. It doesn't bring benefits for the company and for the shareholders in this moment, given the high interest rates of the moment. What we expect for the next five years is that we can have a distribution of our profit from 50%-80%, and an example of the trust and commitment with this logic that we just presented to you, we communicated this morning. First, the finishing of the plan that we started in February 2025. We executed 94% of the plan, exhausting the reserves that we had to be distributed. We exhausted BRL 1.7 billion, allowed us to distribute in this period, exhausting the reserves that we have for distribution. Relying on the profitability, profit generated in the next periods, we communicated a new plan at the same size as the previous plan that will be executed the next 18 months as we generate new reserves that can be distributed. I finished my part here. I invite Fabiana to talk to us about the next steps. Thank you, guys. Thank you, Daniel. We will start now our Q&A session. Remember, those that are connected online can ask their questions clicking on the Q&A button, sending your questions in writing. The ones that are in person, just raise your hand. Let us organize ourselves. Let's bring everybody to the stage. We bring the mic to you. First, tell us your name, the institution that you're part of, and the questions that we cannot answer here today. Please send it to the IR email, and we will answer them later. I invite to the stage Fabio, Daniel, Fabi, Paula, and Aires. All the executives that came up here today are very close to us, available to answer specific questions you might have. Good morning. Congratulations for your presentation. Fabio, how do you see the evolution of the market structure and what competitors do you have? Where do you see white space as a new concept and how we should think about the addressable market, incremental price points, and lifestyle of a new brand? Thank you for your question and for your presence. I think that the market is making a movement. The biggest movement was in the pandemic and the post-pandemic moment, the entry of players, different model players. Digital growth was very strong. The market reorganized itself. We see growth, a higher growth of the formal players and the big players, entry of new players. As we showed, the market is huge. It's still very pulverized. It's still very informal. So there's a lot of space for the entrance of formal players and for growth, and there's space for everyone. We are positioned better than any of the other players, I believe. If we look at Brazil, 18% of the fashion sales is in digital, 82% is in brick and mortar. We are in brick and mortar and digital. We see a few players that are just digital or just brick and mortar. We have the potential to capture both. Another important point when we look at the others that act on top of this. We invested more. We have bigger capabilities, installed capacity to grow with efficiency. It allows us to have an important potential in terms of growth for the current concepts that we have and future growth of other concepts. We brought the case of Youcom here because sometimes we hear some narratives of, "Oh, you cannot create a brand." We created the youngest fashion brand, the strongest youth fashion brand in Brazil internally. Camicado was an acquisition and was also Youcom and Ashua were born in Youcom. Machine of a youth lifestyle. We have many lifestyle segments inside Renner with the growth potential in Renner. We showed this Fabio and the guys at. But also, Youcom, that's a lifestyle. There are many others. For example, the ones that we have worked on in Renner can be future concepts of specialized business with the same potential for growth also. Your opinion about makeup and perfumery. When we talk about fashion and lifestyle, these are correlated segments inside Renner and future opportunities. We see, especially in Renner, the potential to grow, be it fashion, be it beauty. It's our core. We have potential in what we already do and what we can do in our core, expanding our potential. Thank you. Thank you, Bob. Good morning. Thank you for this presentation for the complete update. I'm from Citi. I have two points more financial. First, I want to explore a bit the improvement in the expense retail, 2.5 percentage points. How much of this comes from operational leverage? We understand that up to now, the big part of the message regarding the expense improvement, the dilution would come through operational leverage unless they cut off expenses. I want to hear a bit if it changed a little bit. If you're seeking efficiency, it would be important, Fabio, Daniel, to mention this here. Fabi. Sorry. Paula. Sorry, Paula. They're similar. There's a, yeah, they're related. Paula from Realize. It would be interesting to talk about retail also. Just one more quick thing. 70% of payout that we think you're giving soft guidance for the next years. It's important to understand looking at next year, especially the discussion we have in terms of tax, how much this can be an extraordinary dividend, how much buyback. What is buyback? I think it's very relevant. We've seen many companies talk about this. I'm sorry, Paula. Thank you for your question, João. The first part of the question is a bit of everything you talk about. A part is dilution due to growth and leverage. A part is a reduction in specific points. A part is, Paula said, in Realize is the optimization of Realize. I'm going to ask Daniel to convey the numbers that we already mentioned before and the part distribution also. What Daniel made clear for this year, we exhausted the reserves, but we can talk about the following years also, Daniel. Yes, yes. Let's talk a bit about the distribution issue. First point, we saw a strong movement of a few companies doing exceptional distribution now, but all distribution is done with existing reserves. That's why I was very emphatic in saying that BRL 1.7 billion exhausted all of our reserves. There aren't new reserves that can be used this year because we distributed all of them in 2025 with the results that were published until now. Now we are forming new reserves. When February, March, when we published Q4 and you compose new reserves, as we mentioned, the priority is IOC. Even with the new taxing, JCP continues to be the first most advantage option to distribute results. After, as we communicated this morning, in a first moment, we have our repurchasing model that is activated will be a way to distribute our reserves. Regarding expenses, it's a component of both. We have a part of reduction, a part of Realize. Paula mentioned, right, Paula, that the balance sheet, you want to talk about 2026 and 2027 onwards, of course. It's important when we look at Realize. The last three years, we observed there was, in fact, a growth of M&A. M&A, that's important. What happens today in the fiscal year? We are in the middle of a digital transformation where we are having our technological catch-up because there was a technological issue in our platform. When you're doing a digital transformation, you continue with the run the business expenses while you're doing the investment of change the business investment. This should finish these parallel expenses between the second semester of 2026 and the beginning of 2027. And from 2027 onwards, you will be able to observe that it will gain the capturing of efficiency from there on or level, especially the variable expenses related to processing costs, how much we can be efficient in our core business. No doubt will bring a volumetry SG&A and total expenses of Realize to a healthier level than we see today. It's important to remember, even in the years where we are a little bit more compressed in terms of expenses, we are growing aligned to the inflation. So there's no relevant detachment that implies that we are concerned today with the financial expenses. We know we have opportunities and we're working strongly to capture them as fast as possible. Even with the platform change in case of Realize, there's nothing detaching from inflation and we see an important reduction opportunity. The others, Daniel sometimes gives us a range of how much comes from reduction and scale. It's important. It's difficult. Range and reduction. The part of scale comes from scale. We're prepared to grow. If the growth comes on the lower range, it comes from reduction. If it comes on the upper range, it's more scale. I have a quick question. Good. I'm Pedro Pinto from BBI. By the way, I want to say thank you for your presentation. Clear, but building upon his last question in terms of expenses, expenditures, let's look at it from a different perspective. You know, Daniel said earlier, you know, we're talking about capital distribution. You know, let's talk about the, you know, sometimes growth may not reach like 9% or 13%. There's several reasons, you know, there might be several reasons for it. And so our expenses will grow way above the revenues. How can you codify that, you know, the expenses? It's very much related to what he said. I would like to understand this a little bit better. You know, we have like downturn cycles, you know, it's so cyclical. Would it be possible still to be efficient? And our second question is about the, you know, Aires mentioned earlier about supply chain. You know, supply chain was really big over these past year, a few years, but today the capital deployed has converged into these 20% of ROIC. Out of these 20%, I would like to understand a little bit about your stock demand. How much flow do you have there? Like, so these are the two questions that I had. So I'm going to start. Daniel, you can start. Answering the very first part. Yes. Even if there's fluctuation in terms of demands. Yeah. That's why our metrics, we use trends as indicators, but we have the potential to reduce expenses over revenues, even if it's difficult for us. You know, we anticipate our scenarios, but if that happens, also there will be situations and conditions to take this path. We have like more initiatives for reduction. But for your second answer, let's talk about expenses. What I think is important, Pedro, is if we do not grow as much as we expect, we know that retail, part of it is variable, you know. So basically, I always talk to Fabio about it. And this is discipline, right? If you have volumetrics, obviously it will adjust your structure to the volumes you have. Obviously, part of your expenses are fixed, but they're fixed. They're not untouchable. So depending on the expectations you have, if it's a cyclical thing or something that will take longer , given some macroeconomic perspectives, you'll have to make decisions to adjust it. But I think the important point here to remember is, I think I mentioned it, the company had the intentions to increase expenses. Why? Why did we increase it? Because, you know, we were a company that operated, 97% of our sales came from physical retail, and we needed to put together a digital structure for us to succeed and be competitive in an environment which is completely different from the environment of five years ago. It's important to talk about these intentions. You know, sometimes we treat these expenses as something we're not, maybe we might think we're not careful in our management. No, we were. You know, we wanted to highlight new structures that we have created, our new capabilities that we put in the game. And obviously, yeah, they added pressure to our results. We know that. But at the same time, they allow us, you know, these, you see these results from these past two years show that, you know, have put together a structure that allows us to continue growing and grow even more. Our distribution center, you know, addresses the need of, let's say, the coming years. It can support the demand of the next five years. Several of these structures of today have allowed us to get into the digital sphere. 15% is much higher than our competitors. And as I said earlier, we managed to reduce the cost of operation of our digital platforms. We expect that the power of the continue growing. Yeah, we are ready for it. We are ready to generate growth and address this growth without increasing expenses. But obviously, there's efficiency in the game. Paula mentioned the example of Realize, but we also have that in retail. You know, out of all the structures and the forms of operations that we have, we know there are many things we can explore. There are internal discussions to execute and carry out these plans. At the same time, you know, we can rely on growth depending on us, but also depending on the macro perspectives. We can also have internal discussions to generate efficiency, and this is stated in this roadmap. It's within the mission, you know, from 2.5%-3.5% of leverage for the coming five years. You also mentioned like stock flow. We want to reach like four times. We want to evolve, you know, our stock. We have been very successful in that. You know, all the supply things related to supply chain that I just mentioned will allow us to operate our stock more efficiently. The idea is to profit even more. You know, our benchmark shows that we have like a 4% per year, but we're going to try to take that path. Thank you, Pedro. Good morning. I'm from BBI. Daniel, I got a question. You know, some people ask me, just want to make it clear. From 50%-80% of payout up to 2030, does that include buyback and JCP? Yeah, it does. That's why I didn't call it payout. We call it profit sharing and so I got a question. If you simply replicate JCP figures that you mentioned earlier this morning, like BRL 800 million, the approximate profit for next year will be BRL 600 million. But it will be, if you look at JCP alone, we're talking about like almost 50% of your payout. You must use that to maximize the results. So the implied reading is, you know, the 2025 buyback will not be as relevant given that with the JCP alone, you get like 50% of your payout. Does that make sense? Am I right? Your calculation, yeah. But Fabio mentioned earlier, we still have the Q4 results whose reserves will be available in February or March. I don't know. We're going to double-check it, but you also have the reserves that you'll generate at the end of the year. And so Q4 is a very important year for the generation of reserves. And as I said earlier, JCP, it consumes like a very specific base in the surpluses. You know, we can use to execute the purchase plan roadmap, except unforeseen conditions, of course. The purchase plan, we got a history, you know, in our company. We have been very successful. But if there's like an external factor that makes us refine it or revise it or take a look at it, we are going to do it. Why not? Due to external factors. But the principles is we're going to repurchase the surpluses and you have 18 months to carry it out, including the years reserves up until those that will be available in the 2027 T1 reference to the 2026 T4. So we carried out two in their full capacity. And so we announced the second and we executed like 94% of it. And as we were almost done, you know, I had a chance to, you know, we announced the fourth that we want to carry out in 18 months. The third one, you know, basically the first one, we did it in up to 10 months, like almost 100%. So we are the fourth period of 18 months. And as the reserves come in, the priority will be on the IOC. And then depending on the stocks and shares, we will try to repurchase. And this is very available to our stakeholders. And question from these 50%-80% by up to 2030, is it like is it a linear average, linear figures from 2026 up to 2030? Or maybe it could be bigger in 2026 and lower in 2030. Well, I would say that in these past few years, we reached over 100% in its entirety. You know, maybe every year it'll be like from 50%-80%. Obviously, it's an estimate, you know, with our current plans, current roadmap. You know, there is a plan that will generate a lot more value, some for stakeholders, shareholders, you know. So the trend is we it should be within this range. A second question, it's related to the guidance. Today's guidance is, you know, with the new long-term tax relief incentive plan. What are the most important metrics you've been using for this long-term incentive plan? And what about the guidance that you're using today? Do they already have an impact on the long-term plan? I'll do the second part. Yes, they have an impact. Absolutely. I think our long-term and long-term remuneration are in line with the plan, with the roadmap. We can, you know, as we said earlier, you know, we're working on what we think is challenging, but possible, of course. We're working on a plan, roadmap that generates value to our stakeholders, and they must be in line. What about the metrics? The metrics, you know, Regina mentioned earlier, we have three metrics. Let's talk about the long-term plan. TSR, relative, relative TSR, ROIC, and the third one is Earnings per share. If you think about in the period of three years, the strategic plan we have put together today and the metrics that are going to be used for them, they are all integrated somehow. The goals we set, obviously, it's going to be a long journey. They're going to be part of the metrics. They will be presented later to the board to be approved and analyzed. You know, so it's going to be making a decision in the beginning of the year for this three-year cycle. Every year, obviously, we have new metrics and looking at what just happened and with new estimations of what is coming next. Sorry, one last question. In practical terms, the three-year CLP. So there is one of the metrics that you mentioned is that you assume in place explicitly a CAGR of per share of 9% and a margin of from 18%-20%. Is that incorporated into it? Yes, it is. It's embedded into it. I got a question. Irma, she's online. She's from Goldman Sachs. Here we have the examples of Youcom and the trust we have in the concept through the opening plan. We believe the time to scale of a new concept will be shorter if we believe so. What are the takeaways in this sense? I just got a second question, which is not related. I'm going to read it to you. Could you give us more details about whether we should think that productivity growth in our plan would be more driven by volume or price? I'll answer the first. You'll answer the second. Thank you for your question, Irma. I would say that, yeah, we learned a lot. You know, if you look at the Youcom, you know, we presented to you earlier, but only gave a presentation on it. It officially came to life in 2013, both Youcom and Camicado, which we purchased in 2011. You know, I think those were the very first takeaways from the new concepts. You know, we understand the way we see it is a growth leverage, very, very important growth leverage. We were learning, we're trying things out. We tried a lot, and then we scaled. And Barone said that Youcom not only is it an example of a brand, a powerful brand. So it's Camicado, of course, but they show that our platform is ready for new concepts and new opportunities that could be scalable. So it's in the beginning, we learned a lot. We tried things out. We did things we never had done before. Of course, from this moment on, time to be shorter. We're going to have like shorter time. We learned a lot. We are ready. We learned a lot from both to try them out, to scale them. And in the future, a new concept will be, you know, a new concept will be in place and grow even more. Price and volume, right? You know, there is a component, a real price component, which would be the inflation, and the rest would be like a combination of volume and mix. On the one hand, we know there's volume in the game, but several initiatives that we are proposing, you know, we could improve our sales mix. It's the value per part, per piece, per item. So it's a combination of both. Now, I'm Dani from XP. I have a follow-up on the margin dynamics. I don't think you mentioned about the gross margin and also supply, you know, the data that Fabi has shared. It showed that the model, you know, there's a reduction in the market down. But if you could give us some more about the gross margin, I know it has evolved. It grew a lot, but I would like to hear from you guys. And my additional question is about Realize. You say, I know, gave me the impression that, okay, you're focusing on the ones, but you brought something related to co-branding, like more flexibility to offer to us. Why is it? I see you brought the data to Fabi. You showed them over the data, but if you could have the environment, it's to be better explored, and then can you connect it with the credit appetite? You know, we're obviously talking about volatility, but a lower interest rate. How do you see that? What would make you increase your appetite? Thank you. Margin, you cannot talk about margin without talking about Realize. I think in terms of margin, we have been talking a lot about it. We see great potential for a slight growth and a higher and an elevated point, of course, with all the gains of this model that allow it. We could have more stock. We have gained a lot from it, but we see opportunities here. You know, we try to show you more data on the things that we didn't talk much about before. I talked about profitability, which results from the reduction in expenses and commitment, but also comes from the gross margin growth. I think this is a kind of a growth that is slight, you know, but we can grow even more. About as for Realize, of course, thank you for your question. Very smart. As we said earlier, you know, we have a new product. It's important that you guys understand the dynamics in your operation. Today, we have a portfolio that is concentrated on a co-branded card. You know, customers have a limit to spend outside of the company and in the company, but from 2020 up until now, grand concession of cards is very much focused on the private label. Why is that? It's important to share it with you that private label is unique. You know, it's very important for credit modeling. You know, it allows client customers to purchase things on the ecosystem and I can monitor their credit behavior. So today, out of 10 cards that we give in the store, this has been a while, you know, a reality for a while. So eight of them are private label. So for some other cases, you know, we have some upper middle-class customers. You know, they also have like a Visa or a Mastercard card. You know, he's got those labels, but they can operate it either only as a private label. There's going to be a limit, which is independent for on-as consumption, and they'll have the prerogative to enable it at any time and increase the limit. So that's innovative in the retail sector because it reduces friction. Today, when I give a client customer a private label, you know, we're going to it's a lot. We're going to have new use plastic. There's an embossing cost. In terms of DNA, it's very good. For risk management, it's got the possibility, you know, gives me the possibility to give customers private label with the on us limit enabled. As I see their credit behavior, I can open and I can expand this on us limit. You know, it's very, very important both for the value proposition generation, but it also gives me the prerogative of knowing their behavior, you know, in terms of consumption, bringing those insights to my credit model and also showing important elements for fashion consumption. This will allow us to have a very adequate operation connecting retail and financial services. As for risk appetite, we have been working on a credit policy, which is being able to support the deal with things very effectively. You know, we remain like 28% or 29% of the sales, and we see there are opportunities here to expand this credit as the macro environment allows. You know, financial institutions, we are here to have a good risk management. We are ready for it. We have capital. We have an adequate model. It will depend on how we will move on, and remember, we have more volatility next year. We are very consistent in terms of model, and with this new product, we are even ready to support the sales expansion. Thank you, Dani. Congratulations for the event. I have three questions. Can you speak a bit louder? Joseph, J.P. Morgan, thank you for the event. Congratulations for the event. Three questions. Looking at the last year and a half with the slide that you presented to us, future growth, the usual for guidance, we have implied a true growth of 4%-5% without distortion, seeing that the incremental area of store is smaller than we saw before due to the profile. What I wanted to explore with you, looking at the tooling of CD, we're in more or less one year with CD almost full power. Looking at the level of efficiency, where do you imagine that you are? You talk about improvement of three points, availability of product at store. To where can we bring this to understand what it brings in terms of productivity? Asking to Fabi, she talked about freshness, 23% between the collection, where we can do more when we look at the climate issue. It wasn't an issue as it has been in the last two years. You have an algorithm evolution. What failed? Do we have the comfort that in the next five years, we have 9%-13% growth? It was a consensus. Maybe it's one point, two points below your guidance with similar expansion. Thank you for your questions. Would like to use the presence of the executives here. I at least can answer the first question about productivity, distribution center, Fabi. You can talk about freshness, responsiveness to climate issues. Okay. Thank you for your question. Do you hear me? Thank you for your question. It's important I mentioned the distribution center is operational since 2024. It was an important stage this year to finish the migration of e-commerce, and they're bringing it to the distribution center. When I look at the efficiency that we have in the supply to the store, the curve is very advanced and the productivity captured. The productivity of e-commerce this year is maturing. We concluded the migration. We're going to capture gains in productivity. The next year, you will see an improvement in the logistics on top of revenue. We'll be seeing next year with the evolution, with the maturation. This also happens with the sourcing, the supply part. We have a curve. I showed the integration of systems with the suppliers is 50% in our supply base domestically. We want to increase this. This will bring important gains also in productivity in the sense of suppliers and connection with development and collections. We don't have an exact number of what is the curve, but I can tell you that e-commerce, there's still maturity to be reached in the logistics operation. Sourcing also, we're going to involve the integration with the suppliers, gain in productivity in the domestic chain, supply chain. Thank you. Yes. If we look in terms of capabilities, the company has it all installed. It has models, predictability, data. We have a system, functional system of building collections with methodology. It's very strong. I would take a bit care to say the error was ours in terms of the decision, not the capability or the condition. You talked about an error, and I want to go back to this. We made a decision to buy an excess in the winter. It's not always good. You don't deal with the next season always well. Looking at the short term, okay, it might have been an error in our minds, a loss in competitive advantage of Q3 with that quarter with the growth of competitors. When you look at the full picture and I'll draw your attention, you look at the film or the movie of the evolution of stock, the construction that's engaged and the productivity that we leave open for the portfolio to really react in season. Capacity we have, we made a decision. You talked about a pain in the third quarter. You were talking about that, right? In the long term, we gained 20-25% of turnaround the last nine months. We increased 1.9 gross margin with one of the highest margins in the fashion retail, and there's still evolution that Fabio has left. We continue to project for this cycle, greater gain in turnaround, more reactivity. We depend on the productive capacity, but reducing the productive cycle is important and it we are having help. We have cases where for 20 main ones, we have a relevant percentage of reactivity and of course, we will increment more. We gave the guidance of more or less leaving reactivity, but not only reactivity. The productive cycle we expect again in terms of speed that will bring us the flexibility. To add here, as Fabi said, well, it's a decision. When we make a decision, we evaluate risk and return. You can lose a bit of sales, but you gain in margin or gain in turnaround, as she said. Of course, maybe looking at today, we can risk more, gaining more sales. Yes. This is an evolution for the model. We're talking about evolution. When we look at what will happen, we adjust and evolve in the processes and the evolutions. We see how we capture even more the risk-return relation. I have a question from online, Daniela from HSBC. I think it's interesting, the feedback and increase in sales that the refurbishing of the stores has brought. The other information, if you can share how many stores we want to refurbish in the last years. And her second question about the implementation, the RFID: I want a summary of the gains that the implementation brought to the company. If you can tell us the areas and processes that count on this tool, if it's already 100% implemented. Well, I'm going to start with the last one, RFID. It's hard to say the gain. It's an end-to-end model that made feasible since 2017. We started, if I'm not mistaken, we started and finished implementation of RFID 100% in the brand in 2017. Renner brand since then 100% implemented. It's not now in 2025. It was in 2017. The others we're still evaluating the cost-benefit and the return. What are the gains? I think it's an enabler to have stock accuracy. We have seen the importance of having inventory stock that's stock that's inventoried frequently to have accuracy of information to manage the stock. Stock is one of our biggest asset people, asset product. It's a huge initial gain that we had in 2017, 2018. After that, also it allowed us to have more speed in the cashier queues. We were able to reduce the lines, the queues of having more products at once. And the work that allowed granularity in the DC to work SKU to SKU, you need to have stock accuracy. I would say it's a big enabler of the digital journey of sorting of stock turnaround, accuracy, governance, many points, but I don't think there's one indicator. It's an old project actually for us. The first part of the question, the refurbishing or renewals, we're going to give annual guidance of the investments per year. We validate this in the shareholder assembly. We propose this in each assembly. We're looking for a horizon in terms of expectation of what we have of CapEx on top of revenue. Probably two-thirds of it will go to store opening, digital journey, and refurbishing or remodeling, and the two-thirds, probably a good part is for remodeling or refurbishing. Maybe in the beginning of every year, we can have a new horizon, a range of new stores. This year, we're going to meet the range that we gave for opening some new stores at the end of the year. We talked about 30-37 stores, and we will meet this. And if we look at the range for the next years that we didn't give a total per year, but we have a potential that we will let you know in the beginning of each year, maybe even be twice as big. It's not the same number every year, but it's an important potential. So refurbishing also bringing good results. We want to intensify the investment in refurbishing. We are renewals. We decrease the cost per square meter. We decrease the cost of the renewals per square meter. We can renew more stores spending less. If I can add, there's an important gain. It would be of RFID. It will bring productivity of per store operational. RFID allows us to get into the Phase in management and the operation of the stores, all the part price, pricing of the product or repositioning of product, operational parts of the store based in people. We gain a lot of productivity and we will, it will give us a gain in productivity. It will help the dilution of expenses, for example, the phase that we are using to gain the productivity. It's still a base. It leaves the customer and enters our operation and our gain. We got to the end of the Q&A. We're a bit late. I passed the floor to Fabio for his final words. Thank you, Fabi. Thank you, everyone. I would like to add, we received a few questions and our intention here was to show what are our expectations and ambitions for the next years. I can answer a few questions to see how it's possible, if it's possible. Our intention was to show the ambition showing it's possible. Three questions that we received a lot and I hope we answered here to give an example about that. One was more constant, a story of growth, of profitability or distribution of values. If you grow, you burn profitability. You give profitability, you don't grow. If you distribute, you don't grow. We're trying to show here and make it very clear. It's a story of growth with profitability that's increasing and with distribution because you generated a lot of value, generate so much cash and value that we're able to grow with profitability and distribution. This growth with profitability comes from the investments that we made in the past, the tests that we ran in the past, the things we did in the last years. That's why we brought these cycles also, and a question that some ask, well, but it's implicit here because in the previous growth, you had a big growth in terms of area. It's implicit here. An important growth in terms of efficiency, yes. Some might ask, but you didn't do this in the past. A growth coming from sales store bigger than in the past. True. It's true, Daniel showed here. We are already doing this in the last few years despite being a big challenge, not just an intention. It is already real. Our growth in the last two years comes from this and the initiatives that we were talking from now on is to maintain this growth and now bringing new leverages like accelerating once again the digital that is very profitable now. We balanced it out the last two years. It grew from 2023 to 2024. Now it gained profitability. Now it's ready to grow. We're ready to accelerate the expansion and to keep that good level of growth with efficiency. A final question that I receive sometimes when we talk about expansion, acceleration also, why now? Sometimes people ask, why now? It's not, it's uncertain. Isn't it worth waiting a bit? Why now? Because the projects are great. They bring a lot of value to the shareholders. We are ready. Installed capacity is there. The team asking to move and we're ready. That's why now. I want to use the opportunity to thank everyone. We finish now our online event. Any questions? We're always available. Thank you guys.

Speaker 16: Good morning, everyone. Welcome Investor Day 2025. I'm Fabiana Oliver, Investor Relations Manager. Our event is being held in a hybrid form, so thank you so much for coming here to Porto Alegre, and thank you all who are online. The event, this event, is being streamed with simultaneous interpretations being provided. It will be recorded, and both the English and Portuguese slides are available on the IR website. This morning, we have had several executives here to present to you our strategies, our ambitions for the coming five years, and how we're going to get there. This is our agenda, how we put together this agenda for today. In the end, after Daniel's session, we're going to have a Q&A session. For people who are here, of course, just raise your hand, and we're going to have, like, we'll be able to answer your questions. Good morning, everyone. good morning everyone Welcome Investor Day 2025. welcome investor day 2025 I'm Fabiana Oliver, Investor Relations Manager. i'm fabiana oliver investor relations manager Our event is being held in a hybrid form, so thank you so much for coming here to Porto Alegre, and thank you all who are online. our event is being held in a hybrid form so thank you so much for coming here to porto alegre and thank you all who are online The event, this event, is being streamed with simultaneous interpretations being provided. the event this event is being streamed with simultaneous interpretations being provided It will be recorded, and both the English and Portuguese slides are available on the IR website. it will be recorded and both the english and portuguese slides are available on the ir website This morning, we have had several executives here to present to you our strategies, our ambitions for the coming five years, and how we're going to get there. this morning we have had several executives here to present to you our strategies our ambitions for the coming five years and how we're going to get there This is our agenda, how we put together this agenda for today. this is our agenda how we put together this agenda for today In the end, after Daniel's session, we're going to have a Q&A session. in the end after daniel's session we're going to have a q&a session For people who are here, of course, just raise your hand, and we're going to have, like, we'll be able to answer your questions. for people who are here of course just raise your hand and we're going to have like we'll be able to answer your questions And if you're online, please just click on the Q&A button. Now, I'd like to invite the President of the Board of Directors, Carlos Souto, to come to the stage. And if you're online, please just click on the Q&A button. and if you're online please just click on the q&a button Now, I'd like to invite the President of the Board of Directors, Carlos Souto, to come to the stage. now i'd like to invite the president of the board of directors carlos souto to come to the stage

Speaker 9: Good morning, everyone. Oh, it's too loud. Better now? I was so emotional today. It's a great honor to have you here in Investor Day 2025, a very important moment to reinforce the essence of the culture of Lojas Renner S.A., which was built upon transparency, discipline, and trust. These are values that have always guided our relationship with the market, along with a long-term view which is shaped by decades of decisions, pioneering decisions, and a leadership that has consistently placed Renner ahead of the trends in the sector. Good morning, everyone. good morning everyone Oh, it's too loud. oh it's too loud Better now? better now I was so emotional today. i was so emotional today It's a great honor to have you here in Investor Day 2025, a very important moment to reinforce the essence of the culture of Lojas Renner S.A., which was built upon transparency, discipline, and trust. it's a great honor to have you here in investor day 2025 a very important moment to reinforce the essence of the culture of lojas renner s.a which was built upon transparency discipline and trust These are values that have always guided our relationship with the market, along with a long-term view which is shaped by decades of decisions, pioneering decisions, and a leadership that has consistently placed Renner ahead of the trends in the sector. these are values that have always guided our relationship with the market along with a long-term view which is shaped by decades of decisions pioneering decisions and a leadership that has consistently placed renner ahead of the trends in the sector Our history in the capital market began in 1967 and reached a milestone in 2005 when it became the first Brazilian corporation whose 100% of its shares are negotiable in the stock exchange. In the capital is fully pulverized. This movement not only changed the company, but has also inspired the Brazilian market. The year 2025 is particularly significant. You know, we celebrate 60 years of our existence and 20 years of this milestone in the capital market, which redefined our identity. A history which has been marked by cycles, transformation, constant evolution, discipline to grow, and courage to innovate. We have always been anchored in the purpose of being a reference in fashion and lifestyle in Brazil by making clients happy and promoting responsible fashion. Our history in the capital market began in 1967 and reached a milestone in 2005 when it became the first Brazilian corporation whose 100% of its shares are negotiable in the stock exchange. our history in the capital market began in 1967 and reached a milestone in 2005 when it became the first brazilian corporation whose 100% of its shares are negotiable in the stock exchange In the capital is fully pulverized. in the capital is fully pulverized This movement not only changed the company, but has also inspired the Brazilian market. this movement not only changed the company but has also inspired the brazilian market The year 2025 is particularly significant. the year 2025 is particularly significant You know, we celebrate 60 years of our existence and 20 years of this milestone in the capital market, which redefined our identity. you know we celebrate 60 years of our existence and 20 years of this milestone in the capital market which redefined our identity A history which has been marked by cycles, transformation, constant evolution, discipline to grow, and courage to innovate. a history which has been marked by cycles transformation constant evolution discipline to grow and courage to innovate We have always been anchored in the purpose of being a reference in fashion and lifestyle in Brazil by making clients happy and promoting responsible fashion. we have always been anchored in the purpose of being a reference in fashion and lifestyle in brazil by making clients happy and promoting responsible fashion Since I joined the board as President in 2024 with our Vice President, Jean Pierre Zarouk, and all the other members of the board of directors, Juliana Rozenbaum, Chris Eddington, Andréa Rolim, André Castellini, Marcilio Pousada, and Adriano Seabra, our focus has been very, very clear to strengthen the strategy, to preserve the culture, and ensure the generation of sustainable value to all stakeholders. We're always providing support to our administrators and the company itself. We are independent, rigor, we're responsible, and the perspective geared towards the future, guided by our values and aligned with the highest standards of corporate governance. The role of the board is to ensure the continuous growth, sustainable growth of the company by defining the strategic decision, anticipating structural changes, promoting innovation, and strengthening our culture of leadership. Since I joined the board as President in 2024 with our Vice President, Jean Pierre Zarouk, and all the other members of the board of directors, Juliana Rozenbaum, Chris Eddington, Andréa Rolim, André Castellini, Marcilio Pousada, and Adriano Seabra, our focus has been very, very clear to strengthen the strategy, to preserve the culture, and ensure the generation of sustainable value to all stakeholders. since i joined the board as president in 2024 with our vice president jean pierre zarouk and all the other members of the board of directors juliana rozenbaum chris eddington andréa rolim andré castellini marcilio pousada and adriano seabra our focus has been very very clear to strengthen the strategy to preserve the culture and ensure the generation of sustainable value to all stakeholders We're always providing support to our administrators and the company itself. we're always providing support to our administrators and the company itself We are independent, rigor, we're responsible, and the perspective geared towards the future, guided by our values and aligned with the highest standards of corporate governance. we are independent rigor we're responsible and the perspective geared towards the future guided by our values and aligned with the highest standards of corporate governance The role of the board is to ensure the continuous growth, sustainable growth of the company by defining the strategic decision, anticipating structural changes, promoting innovation, and strengthening our culture of leadership. the role of the board is to ensure the continuous growth sustainable growth of the company by defining the strategic decision anticipating structural changes promoting innovation and strengthening our culture of leadership We have seen up close the strategic initiatives of the company, ensuring that the opportunities became in results aligned with the interests of the shareholders and generation of value in the long run. Among the important stages, it's more things to get this year. We have reached a milestone which I would like to mention: the approval of our long-term incentive plan, a plan that aligns Renner with the best global practices all over the globe, reinforces our commitment to meritocracy and the alignment to the interests of our stakeholders, and also strengthens our capacity to attract and retain the talents to carry out the following cycle. We have seen up close the strategic initiatives of the company, ensuring that the opportunities became in results aligned with the interests of the shareholders and generation of value in the long run. we have seen up close the strategic initiatives of the company ensuring that the opportunities became in results aligned with the interests of the shareholders and generation of value in the long run Among the important stages, it's more things to get this year. among the important stages it's more things to get this year We have reached a milestone which I would like to mention: the approval of our long-term incentive plan, a plan that aligns Renner with the best global practices all over the globe, reinforces our commitment to meritocracy and the alignment to the interests of our stakeholders, and also strengthens our capacity to attract and retain the talents to carry out the following cycle. we have reached a milestone which i would like to mention the approval of our long-term incentive plan a plan that aligns renner with the best global practices all over the globe reinforces our commitment to meritocracy and the alignment to the interests of our stakeholders and also strengthens our capacity to attract and retain the talents to carry out the following cycle What you will see today with our executive leaders is, you know, it's a company that is getting ready, getting ready not only for the next cycle, but for the next decade, which is more, will be more digital, more integrated, more data-oriented, and more and more geared towards sustainable growth, profit. In 2025, we have redefined the strategic priorities of Renner through a clear, integrated plan, which reinforces brand reinforcement based on an incomparable understanding of Brazilian customers, strengthening our position as the major reference of fashion in Brazil, a structure of unique products, differentiated and insight-oriented structure, in which we use data, artificial intelligence, and a model of execution that improves the margin, reduces remarcations, and speeds up the time for release. An omni ecosystem which is continuous and scalable, which expands its reach through new stores, better insertion into the digital sphere, and better productivity. What you will see today with our executive leaders is, you know, it's a company that is getting ready, getting ready not only for the next cycle, but for the next decade, which is more, will be more digital, more integrated, more data-oriented, and more and more geared towards sustainable growth, profit. what you will see today with our executive leaders is you know it's a company that is getting ready getting ready not only for the next cycle but for the next decade which is more will be more digital more integrated more data-oriented and more and more geared towards sustainable growth profit In 2025, we have redefined the strategic priorities of Renner through a clear, integrated plan, which reinforces brand reinforcement based on an incomparable understanding of Brazilian customers, strengthening our position as the major reference of fashion in Brazil, a structure of unique products, differentiated and insight-oriented structure, in which we use data, artificial intelligence, and a model of execution that improves the margin, reduces remarcations, and speeds up the time for release. in 2025 we have redefined the strategic priorities of renner through a clear integrated plan which reinforces brand reinforcement based on an incomparable understanding of brazilian customers strengthening our position as the major reference of fashion in brazil a structure of unique products differentiated and insight-oriented structure in which we use data artificial intelligence and a model of execution that improves the margin reduces remarcations and speeds up the time for release An omni ecosystem which is continuous and scalable, which expands its reach through new stores, better insertion into the digital sphere, and better productivity. an omni ecosystem which is continuous and scalable which expands its reach through new stores better insertion into the digital sphere and better productivity You know, it's a strategic facilitator, you know, promoting more engagement and providing support to expansion into new markets. Discipline financial management, which ensures efficient capital with a solid cash flow leverage profile, which is conservative, and a flexible structure, which is efficient as well. In 2026, we're going to see the important beginning of a new cycle of growth and generation of value. On behalf of the board of administrators, I'd like to thank you all for being here. Thank you for your trust and your continuous work, and I would like to thank you all. Thank you all, our staff members, our administrators. You know, all of them, under the leadership of Fabio, have put together Investor Day, which I believe you'll love it. You know, they dedicated, they were so completely dedicated. Thank you so much. You know, it's a strategic facilitator, you know, promoting more engagement and providing support to expansion into new markets. you know it's a strategic facilitator you know promoting more engagement and providing support to expansion into new markets Discipline financial management, which ensures efficient capital with a solid cash flow leverage profile, which is conservative, and a flexible structure, which is efficient as well. discipline financial management which ensures efficient capital with a solid cash flow leverage profile which is conservative and a flexible structure which is efficient as well In 2026, we're going to see the important beginning of a new cycle of growth and generation of value. in 2026 we're going to see the important beginning of a new cycle of growth and generation of value On behalf of the board of administrators, I'd like to thank you all for being here. on behalf of the board of administrators i'd like to thank you all for being here Thank you for your trust and your continuous work, and I would like to thank you all. thank you for your trust and your continuous work and i would like to thank you all Thank you all, our staff members, our administrators. thank you all our staff members our administrators You know, all of them, under the leadership of Fabio, have put together Investor Day, which I believe you'll love it. you know all of them under the leadership of fabio have put together investor day, which i believe you'll love it You know, they dedicated, they were so completely dedicated. you know they dedicated they were so completely dedicated Thank you so much. thank you so much And thank you not only for Investor Day, but for all the days in 2025. You know, with their competency and high-quality work, you dedicated yourselves tirelessly to make Renner better each day. Now, I'd like to invite Fabio to come to the stage. Thank you. And thank you not only for Investor Day, but for all the days in 2025. and thank you not only for investor day, but for all the days in 2025 You know, with their competency and high-quality work, you dedicated yourselves tirelessly to make Renner better each day. you know with their competency and high-quality work you dedicated yourselves tirelessly to make renner better each day Now, I'd like to invite Fabio to come to the stage. now i'd like to invite fabio to come to the stage Thank you. thank you

Speaker 12: Good morning, everyone. I'd like to thank you for being here, both online and in person. So, I'd like to say that, you know, for us, both for the board and for me personally, or for all the executives, our focus is on sustainable growth and generation of value for our company. You know, we're focusing on that. That's why we're here today. This is a goal. You know, the goal is to share with all of you some of the ambitions that we have for the coming five years, which are related to growth and generation of value. Good morning, everyone. good morning everyone I'd like to thank you for being here, both online and in person. i'd like to thank you for being here both online and in person So, I'd like to say that, you know, for us, both for the board and for me personally, or for all the executives, our focus is on sustainable growth and generation of value for our company. so i'd like to say that you know for us both for the board and for me personally or for all the executives our focus is on sustainable growth and generation of value for our company You know, we're focusing on that. you know we're focusing on that That's why we're here today. that's why we're here today This is a goal. this is a goal You know, the goal is to share with all of you some of the ambitions that we have for the coming five years, which are related to growth and generation of value. you know the goal is to share with all of you some of the ambitions that we have for the coming five years which are related to growth and generation of value Also, we're going to share, over the course of this morning, with you guys how we plan to achieve those results, thus maximizing the potential of our assets. You know, we have to reinforce to you that, you know, this is our starting point. We are leaders in the market. We are getting market share. We can get even more and expand our leadership position, leading position. We can leverage even more our, you know, our market differentials, competitive address. We know a lot. We know consumers a lot. We have strong brands which are recognized by everyone. We are unique in terms of the omni model. You know, we have the largest capillarity in Brazil in terms of physical stores with a digital relevance, which is very strong. Also, we're going to share, over the course of this morning, with you guys how we plan to achieve those results, thus maximizing the potential of our assets. also we're going to share over the course of this morning with you guys how we plan to achieve those results thus maximizing the potential of our assets You know, we have to reinforce to you that, you know, this is our starting point. you know we have to reinforce to you that you know this is our starting point We are leaders in the market. we are leaders in the market We are getting market share. we are getting market share We can get even more and expand our leadership position, leading position. we can get even more and expand our leadership position leading position We can leverage even more our, you know, our market differentials, competitive address. we can leverage even more our you know our market differentials competitive address We know a lot. we know a lot We know consumers a lot. we know consumers a lot We have strong brands which are recognized by everyone. we have strong brands which are recognized by everyone We are unique in terms of the omni model. we are unique in terms of the omni model You know, we have the largest capillarity in Brazil in terms of physical stores with a digital relevance, which is very strong. you know we have the largest capillarity in brazil in terms of physical stores with a digital relevance which is very strong Putting these two things together, it makes us very, very unique in the market. And by leveraging all that, we have a team which is highly competent and engaged. And all of that makes us ahead, ahead of our competitors. Well, but going straight to the point, you know, we started this period in from 20. We'll start the 2026-2030 period with a platform which is ready. We have invested in it, and we're going to talk about it. You know, we have invested in infrastructure, technological platforms, CV, artificial intelligence, algorithms, database. And our installed capacity is big, and we can grow with profits, with profitability. So this is the moment we've been growing. We've been getting, you know, our performance has been really good since mid-2024. But as Souto mentioned, in 2025, we stopped and looked at things. Okay, what else? What then? Putting these two things together, it makes us very, very unique in the market. putting these two things together it makes us very very unique in the market And by leveraging all that, we have a team which is highly competent and engaged. and by leveraging all that we have a team which is highly competent and engaged And all of that makes us ahead, ahead of our competitors. and all of that makes us ahead ahead of our competitors Well, but going straight to the point, you know, we started this period in from 20. well but going straight to the point you know we started this period in from 20 We'll start the 2026-2030 period with a platform which is ready. we'll start the 2026-2030 period with a platform which is ready We have invested in it, and we're going to talk about it. we have invested in it and we're going to talk about it You know, we have invested in infrastructure, technological platforms, CV, artificial intelligence, algorithms, database. you know we have invested in infrastructure technological platforms cv artificial intelligence algorithms database And our installed capacity is big, and we can grow with profits, with profitability. and our installed capacity is big and we can grow with profits with profitability So this is the moment we've been growing. so this is the moment we've been growing We've been getting, you know, our performance has been really good since mid-2024. we've been getting you know our performance has been really good since mid-2024 But as Souto mentioned, in 2025, we stopped and looked at things. but as souto mentioned in 2025 we stopped and looked at things Okay, what else? okay what else What then? what then We have installed capacity to accelerate, to speed up even more and continue growing and gaining more profitability and revenues, so I'd like to just want to show you this. I saw it earlier before Investor Day. we have published some of the figures that you can see here, and you'll see throughout this session today with notices, relevant data about the indicators of expectations for the coming five years, so this is on our website. We have installed capacity to accelerate, to speed up even more and continue growing and gaining more profitability and revenues, so I'd like to just want to show you this. we have installed capacity to accelerate to speed up even more and continue growing and gaining more profitability and revenues so i'd like to just want to show you this I saw it earlier before Investor Day. we have published some of the figures that you can see here, and you'll see throughout this session today with notices, relevant data about the indicators of expectations for the coming five years, so this is on our website. i saw it earlier before investor day. we have published some of the figures that you can see here and you'll see throughout this session today with notices relevant data about the indicators of expectations for the coming five years so this is on our website

Speaker 9: We have the expectation with these investments that we did with the initiatives that we will speak of today have an average growth in the next five years between 9% and 13%. More than that, with a gain in profitability, gain in profitability above this coming through scale, through gross margin, but reduction of expenses. We have the expectation with these investments that we did with the initiatives that we will speak of today have an average growth in the next five years between 9% and 13%. we have the expectation with these investments that we did with the initiatives that we will speak of today have an average growth in the next five years between 9% and 13% More than that, with a gain in profitability, gain in profitability above this coming through scale, through gross margin, but reduction of expenses. more than that with a gain in profitability gain in profitability above this coming through scale through gross margin but reduction of expenses We have an expectation in this period during these five years of reducing our commitment of expenses on the net revenue to two-three percentage points coming from the growth, gaining efficiency, also reduction, specific reductions. Another important point, talking about investments we did before, we came from a cycle of investment, 9% CapEx on our net revenue, investments geared towards this platform, this infrastructure, the installed capacity in the database and this model that is ready to grow, ready to grow with efficiency and profitability, so we go to a phase now that our investment goes, it is more normalized. We have an expectation of a CapEx on net revenue around 6%-7.5% in this period annually in this period, but the investment is geared towards growth. More or less two-thirds of the investment is for new stores, refurbishing stores, and digital journey, three points of growth, direct growth. We have an expectation in this period during these five years of reducing our commitment of expenses on the net revenue to two-three percentage points coming from the growth, gaining efficiency, also reduction, specific reductions. we have an expectation in this period during these five years of reducing our commitment of expenses on the net revenue to two-three percentage points coming from the growth gaining efficiency also reduction specific reductions Another important point, talking about investments we did before, we came from a cycle of investment, 9% CapEx on our net revenue, investments geared towards this platform, this infrastructure, the installed capacity in the database and this model that is ready to grow, ready to grow with efficiency and profitability, so we go to a phase now that our investment goes, it is more normalized. another important point talking about investments we did before we came from a cycle of investment 9% capex on our net revenue investments geared towards this platform this infrastructure the installed capacity in the database and this model that is ready to grow ready to grow with efficiency and profitability so we go to a phase now that our investment goes it is more normalized We have an expectation of a CapEx on net revenue around 6%-7.5% in this period annually in this period, but the investment is geared towards growth. we have an expectation of a capex on net revenue around 6%-7.5% in this period annually in this period but the investment is geared towards growth More or less two-thirds of the investment is for new stores, refurbishing stores, and digital journey, three points of growth, direct growth. more or less two-thirds of the investment is for new stores refurbishing stores and digital journey three points of growth direct growth When we align growth in sales, reduction of the commitment of expenses on revenue and a CapEx that is more normalized, it allows us also to be ambitious with a ROI around 20% and with a generation of free cash that is very important that allows us to do all of these investments, operate the company and having an expectation to continue to have a distribution of value to the shareholders in a high level. Daniel is going to explore this more, but we have an expectation to distribute a value between 50% and 80% of the profit to the shareholders doing the necessary investment and growing. Besides this, I mentioned that today, this morning, we published these indicators and a few others, but we also published a new repurchasing program and a new distribution of Interest on Equity. When we align growth in sales, reduction of the commitment of expenses on revenue and a CapEx that is more normalized, it allows us also to be ambitious with a ROI around 20% and with a generation of free cash that is very important that allows us to do all of these investments, operate the company and having an expectation to continue to have a distribution of value to the shareholders in a high level. when we align growth in sales reduction of the commitment of expenses on revenue and a capex that is more normalized it allows us also to be ambitious with a roi around 20% and with a generation of free cash that is very important that allows us to do all of these investments operate the company and having an expectation to continue to have a distribution of value to the shareholders in a high level Daniel is going to explore this more, but we have an expectation to distribute a value between 50% and 80% of the profit to the shareholders doing the necessary investment and growing. daniel is going to explore this more but we have an expectation to distribute a value between 50% and 80% of the profit to the shareholders doing the necessary investment and growing Besides this, I mentioned that today, this morning, we published these indicators and a few others, but we also published a new repurchasing program and a new distribution of Interest on Equity . besides this i mentioned that today this morning we published these indicators and a few others but we also published a new repurchasing program and a new distribution of interest on equity You can have access to this. These are examples that our new program of repurchasing, once again, in an interesting amount, a new distribution of interest on our own capital, are examples of the trust that we have in our company and the generation of value that we have for the shareholders. Well, in our strategy, I was talking about numbers, but it was guided in our purpose. Our purpose is to delight everyone. We want to delight our customer to go above the expectation of our customer and our shareholder expectation, generating more value. We do this guided also by an obsession in the centrality of the customer. Delighting the customer is essential for us, aligned to our value proposition to be a reference ecosystem in lifestyle and fashion. In the past, we talked about our strategic pillars. You can have access to this. you can have access to this These are examples that our new program of repurchasing, once again, in an interesting amount, a new distribution of interest on our own capital, are examples of the trust that we have in our company and the generation of value that we have for the shareholders. these are examples that our new program of repurchasing once again in an interesting amount a new distribution of interest on our own capital are examples of the trust that we have in our company and the generation of value that we have for the shareholders Well, in our strategy, I was talking about numbers, but it was guided in our purpose. well in our strategy i was talking about numbers but it was guided in our purpose Our purpose is to delight everyone. our purpose is to delight everyone We want to delight our customer to go above the expectation of our customer and our shareholder expectation, generating more value. we want to delight our customer to go above the expectation of our customer and our shareholder expectation generating more value We do this guided also by an obsession in the centrality of the customer. we do this guided also by an obsession in the centrality of the customer Delighting the customer is essential for us, aligned to our value proposition to be a reference ecosystem in lifestyle and fashion. delighting the customer is essential for us aligned to our value proposition to be a reference ecosystem in lifestyle and fashion In the past, we talked about our strategic pillars. in the past we talked about our strategic pillars We call the three Rs, the three objectives where we want to be a reference. We want to be a reference in lifestyle and fashion, in delighting journeys of our customer and responsible btrends. These are the three references that we have worked on for a few years. The published strategy here is to accelerate and make potential, maximize what we were doing with a few other initiatives. It's not a change in the route. It's a continuity with an evolution and acceleration. Regarding the three pillars that we're going to talk about this morning, this is how to win, and the things that make it feasible are the innovation, artificial intelligence. We call the three Rs, the three objectives where we want to be a reference. we call the three rs the three objectives where we want to be a reference We want to be a reference in lifestyle and fashion, in delighting journeys of our customer and responsible btrends. we want to be a reference in lifestyle and fashion in delighting journeys of our customer and responsible btrends These are the three references that we have worked on for a few years. these are the three references that we have worked on for a few years The published strategy here is to accelerate and make potential, maximize what we were doing with a few other initiatives. the published strategy here is to accelerate and make potential maximize what we were doing with a few other initiatives It's not a change in the route. it's not a change in the route It's a continuity with an evolution and acceleration. it's a continuity with an evolution and acceleration Regarding the three pillars that we're going to talk about this morning, this is how to win, and the things that make it feasible are the innovation, artificial intelligence. regarding the three pillars that we're going to talk about this morning this is how to win and the things that make it feasible are the innovation artificial intelligence Also, we are working over 10 years with this, not just database algorithm, developing of an end-to-end system to use this, the operational excellence that we have and our team, our people, and our culture. But I would like to call here. I ask you to play a video to see what Renner, Lojas Renner S.A. is today. Also, we are working over 10 years with this, not just database algorithm, developing of an end-to-end system to use this, the operational excellence that we have and our team, our people, and our culture. also we are working over 10 years with this not just database algorithm developing of an end-to-end system to use this the operational excellence that we have and our team our people and our culture But I would like to call here. but i would like to call here I ask you to play a video to see what Renner, Lojas Renner S.A. is today. i ask you to play a video to see what renner lojas renner s.a is today We are. Oh, we have something. We are. we are Oh, we have something. oh we have something Well, we saw the numbers now, what Renner S.A., some of our brand concepts. We're going to see this in numbers. When we bring here, we are the leader ecosystem of fashion and lifestyle in Brazil. And a few numbers of the last 12 months up to September. These are public numbers. Well, we saw the numbers now, what Renner S.A., some of our brand concepts. well we saw the numbers now what renner s.a some of our brand concepts We're going to see this in numbers. we're going to see this in numbers When we bring here, we are the leader ecosystem of fashion and lifestyle in Brazil. when we bring here we are the leader ecosystem of fashion and lifestyle in brazil And a few numbers of the last 12 months up to September. and a few numbers of the last 12 months up to september These are public numbers. these are public numbers We have in this period over 20 million active customers purchasing the last 12 months that purchased with us, BRL 13.7 billion in sales in merchandise and retail, generated net profit of BRL 1.4 billion and generated a free cash flow of BRL 1.5 billion. Besides being the main fashion brand in Brazil, the most important brand in fashion in Brazil by far, we have a global recognition, also especially in our ESG practices. We are a reference in some of the main rankings and levels such as Dow Jones Sustainability Index, and we are AAA in the rating, in the Sustainalytics rating for ESG, ahead of our peers, domestic peers and global peers. But some of the competitive advantages of Renner are related to what we speak about, the three pillars, the three Rs. We have in this period over 20 million active customers purchasing the last 12 months that purchased with us, BRL 13.7 billion in sales in merchandise and retail, generated net profit of BRL 1.4 billion and generated a free cash flow of BRL 1.5 billion. we have in this period over 20 million active customers purchasing the last 12 months that purchased with us, brl 13.7 billion in sales in merchandise and retail generated net profit of brl 1.4 billion and generated a free cash flow of brl 1.5 billion Besides being the main fashion brand in Brazil, the most important brand in fashion in Brazil by far, we have a global recognition, also especially in our ESG practices. besides being the main fashion brand in brazil the most important brand in fashion in brazil by far we have a global recognition also especially in our esg practices We are a reference in some of the main rankings and levels such as Dow Jones Sustainability Index, and we are AAA in the rating, in the Sustainalytics rating for ESG, ahead of our peers, domestic peers and global peers. we are a reference in some of the main rankings and levels such as dow jones sustainability index and we are aaa in the rating in the sustainalytics rating for esg ahead of our peers domestic peers and global peers But some of the competitive advantages of Renner are related to what we speak about, the three pillars, the three Rs. but some of the competitive advantages of renner are related to what we speak about the three pillars the three rs When we talk about the three Rs, fashion and lifestyle, a big competitive differential we have, we invested a lot during these years and we continue to evolve is our execution of fashion, our capacity to create incredible, delighting products, assertive, capturing the best trends, translating this to the customer, to the taste of our consumer of the Brazilian market, Argentine and from Uruguay also. Another important point is this issue of the supply chain. We have the best suppliers domestically, an important chain. It's an asset, a competitive advantage, and we have a long-term relationship with them. This is very hard to be built. We have over 20 years of relationship with our main suppliers. When we talk about the three Rs, fashion and lifestyle, a big competitive differential we have, we invested a lot during these years and we continue to evolve is our execution of fashion, our capacity to create incredible, delighting products, assertive, capturing the best trends, translating this to the customer, to the taste of our consumer of the Brazilian market, Argentine and from Uruguay also. when we talk about the three rs fashion and lifestyle a big competitive differential we have we invested a lot during these years and we continue to evolve is our execution of fashion our capacity to create incredible delighting products assertive capturing the best trends translating this to the customer to the taste of our consumer of the brazilian market argentine and from uruguay also Another important point is this issue of the supply chain. another important point is this issue of the supply chain We have the best suppliers domestically, an important chain. we have the best suppliers domestically an important chain It's an asset, a competitive advantage, and we have a long-term relationship with them. it's an asset a competitive advantage and we have a long-term relationship with them This is very hard to be built. this is very hard to be built We have over 20 years of relationship with our main suppliers. we have over 20 years of relationship with our main suppliers Besides this, we also have the flexibility of a global matrix of sourcing, two important assets that we have here connected to this execution of fashion, a network of suppliers that's a differential aid or supply system, 100% omni, 100% SKU based. We have the flexibility, the scale for physical and digital, working piece by piece, ringing speed, granularity, optimizing our assets and our stock also. Reference in delighting journeys, we have the issue of capillarity or physical capillarity, incredibly integrated to the digital. The omni is very important to be present 100% of our customer journey, not just in the physical journey or the digital journey. In both integrated, we have the biggest proximity with all of our customers and the best experience with the omni players also. All of this is made even stronger with a digital platform that booms with AI data. Besides this, we also have the flexibility of a global matrix of sourcing, two important assets that we have here connected to this execution of fashion, a network of suppliers that's a differential aid or supply system, 100% omni, 100% SKU based. besides this we also have the flexibility of a global matrix of sourcing two important assets that we have here connected to this execution of fashion a network of suppliers that's a differential aid or supply system 100% omni 100% sku based We have the flexibility, the scale for physical and digital, working piece by piece, ringing speed, granularity, optimizing our assets and our stock also. we have the flexibility the scale for physical and digital working piece by piece ringing speed granularity optimizing our assets and our stock also Reference in delighting journeys, we have the issue of capillarity or physical capillarity, incredibly integrated to the digital. reference in delighting journeys we have the issue of capillarity or physical capillarity incredibly integrated to the digital The omni is very important to be present 100% of our customer journey, not just in the physical journey or the digital journey. the omni is very important to be present 100% of our customer journey not just in the physical journey or the digital journey In both integrated, we have the biggest proximity with all of our customers and the best experience with the omni players also. in both integrated we have the biggest proximity with all of our customers and the best experience with the omni players also All of this is made even stronger with a digital platform that booms with AI data. all of this is made even stronger with a digital platform that booms with ai data We invested a lot in the last few years. When we talk about data and artificial intelligence, it's present in different moments of our model and the platform. For example, our database that I mentioned, the knowledge of our customers that drives the journey with our customers and products is leveraged by AI that potentializes this convenience and recognition of our customers. Not just that. We go to the end-to-end model. When we capture the trends with more assertiveness, the decision of sourcing the supply, distribution, journey in the store, journey online, recommendations, content, and productivity of the team. All of this, we use a lot of AI, content, database, and this continues to evolve. Besides this, we have also the part of responsible fashion. We are a number one brand in value in Brazil. We are a reference also ESG globally and also financial stability and financial security or safety. We invested a lot in the last few years. we invested a lot in the last few years When we talk about data and artificial intelligence, it's present in different moments of our model and the platform. when we talk about data and artificial intelligence it's present in different moments of our model and the platform For example, our database that I mentioned, the knowledge of our customers that drives the journey with our customers and products is leveraged by AI that potentializes this convenience and recognition of our customers. for example our database that i mentioned the knowledge of our customers that drives the journey with our customers and products is leveraged by ai that potentializes this convenience and recognition of our customers Not just that. not just that We go to the end-to-end model. we go to the end-to-end model When we capture the trends with more assertiveness, the decision of sourcing the supply, distribution, journey in the store, journey online, recommendations, content, and productivity of the team. when we capture the trends with more assertiveness the decision of sourcing the supply distribution journey in the store journey online recommendations content and productivity of the team All of this, we use a lot of AI, content, database, and this continues to evolve. all of this we use a lot of ai content database and this continues to evolve Besides this, we have also the part of responsible fashion. besides this we have also the part of responsible fashion We are a number one brand in value in Brazil. we are a number one brand in value in brazil We are a reference also ESG globally and also financial stability and financial security or safety. we are a reference also esg globally and also financial stability and financial security or safety When we talk about the market that we are positioned, Brazil, Argentina, Uruguay, the majority of our market is Brazil. We sell fashion, clothing, shoes, accessories, beauty. Here I detail the estimate of the Brazilian market in terms of garments, or apparel. In 2024, an estimate of BRL 132 billion in terms of consumption. And the estimate of Euromonitor is that this market will continue to grow 6% every year in the next few years because we are positioned in such a big market. This is an asset, a competitive advantage, also more than that. If we look at the formal market, the three biggest players only have 20% of the market. It's also a potential, not just in terms of growth in the market, but a gain of share in terms of the biggest players. When we talk about the market that we are positioned, Brazil, Argentina, Uruguay, the majority of our market is Brazil. when we talk about the market that we are positioned brazil argentina uruguay the majority of our market is brazil We sell fashion, clothing, shoes, accessories, beauty. we sell fashion clothing shoes accessories beauty Here I detail the estimate of the Brazilian market in terms of garments, or apparel. here i detail the estimate of the brazilian market in terms of garments or apparel In 2024, an estimate of BRL 132 billion in terms of consumption. in 2024 an estimate of brl 132 billion in terms of consumption And the estimate of Euro monitor is that this market will continue to grow 6% every year in the next few years because we are positioned in such a big market. and the estimate of euro monitor is that this market will continue to grow 6% every year in the next few years because we are positioned in such a big market This is an asset, a competitive advantage, also more than that. this is an asset a competitive advantage also more than that If we look at the formal market, the three biggest players only have 20% of the market. if we look at the formal market the three biggest players only have 20% of the market It's also a potential, not just in terms of growth in the market, but a gain of share in terms of the biggest players. it's also a potential not just in terms of growth in the market but a gain of share in terms of the biggest players We must remember that we are the leaders with 10% of formal market. Now, the crunches when we do benchmarking is a lot higher. Our potential is a lot higher due to this. We must remember that we're talking about the formal market. It's hard to estimate exactly the size of the informal market. The majority of the estimates talk about the 40% in informal market. So the formalization of the market brings this to the main players without even mentioning that we are positioned as the player that has the greatest potential to capture this market and grow even more our market share. Besides this, in this market, our positioning is a big asset, a big differential. We must remember that we are the leaders with 10% of formal market. we must remember that we are the leaders with 10% of formal market Now, the crunches when we do benchmarking is a lot higher. now the crunches when we do benchmarking is a lot higher Our potential is a lot higher due to this. our potential is a lot higher due to this We must remember that we're talking about the formal market. we must remember that we're talking about the formal market It's hard to estimate exactly the size of the informal market. it's hard to estimate exactly the size of the informal market The majority of the estimates talk about the 40% in informal market. the majority of the estimates talk about the 40% in informal market So the formalization of the market brings this to the main players without even mentioning that we are positioned as the player that has the greatest potential to capture this market and grow even more our market share. so the formalization of the market brings this to the main players without even mentioning that we are positioned as the player that has the greatest potential to capture this market and grow even more our market share Besides this, in this market, our positioning is a big asset, a big differential. besides this in this market our positioning is a big asset a big differential We are positioned in accessible fashion where we have Renner, Camicado, Youcom, and we see a lot of space to be able to grow and grow more in the concepts we have, the brands we have. We see more space in the same positioning to grow with new concepts. The numbers that we mentioned today that we published that we're going to talk about are about the current assets that we have, the current concepts we have, the current brands, the BUs we have, the current geographies we have in the countries where we already at. There is potential for more. Yes, there is potential for more. We are always paying attention to this. We evaluate all opportunities with diligence, with focus to generate value to the shareholders. We're paying attention to concepts. It can be organic or inorganic. We are positioned in accessible fashion where we have Renner, Camicado, Youcom, and we see a lot of space to be able to grow and grow more in the concepts we have, the brands we have. we are positioned in accessible fashion where we have renner camicado youcom and we see a lot of space to be able to grow and grow more in the concepts we have the brands we have We see more space in the same positioning to grow with new concepts. we see more space in the same positioning to grow with new concepts The numbers that we mentioned today that we published that we're going to talk about are about the current assets that we have, the current concepts we have, the current brands, the BUs we have, the current geographies we have in the countries where we already at. the numbers that we mentioned today that we published that we're going to talk about are about the current assets that we have the current concepts we have the current brands the bus we have the current geographies we have in the countries where we already at There is potential for more. there is potential for more Yes, there is potential for more. yes there is potential for more We are always paying attention to this. we are always paying attention to this We evaluate all opportunities with diligence, with focus to generate value to the shareholders. we evaluate all opportunities with diligence with focus to generate value to the shareholders We're paying attention to concepts. we're paying attention to concepts It can be organic or inorganic. it can be organic or inorganic The inorganics, the complexities of integration, possible complexities of integration that are important and overlooked sometimes, or a new country also, the geopolitical issues. The possibilities are out there. It's not about this that we're modeling today's numbers up. Additional opportunities for the future. What we guarantee is we always will evaluate with discipline and focusing to generate value to the shareholders every moment. We have in the last 10 years, let's detail the cycles a bit more. We have an important growth and this important growth up. Part of it comes to do square meters physical expansion. In the last 10 years, around 5% concentrated in the beginning of the period because in the last years we almost did not grow square meters, but we grew with gain of efficiency. The sales grew more 10%. The profit and cash flow increased also. The inorganics, the complexities of integration, possible complexities of integration that are important and overlooked sometimes, or a new country also, the geopolitical issues. the inorganics the complexities of integration possible complexities of integration that are important and overlooked sometimes or a new country also the geopolitical issues The possibilities are out there. the possibilities are out there It's not about this that we're modeling today's numbers up. it's not about this that we're modeling today's numbers up Additional opportunities for the future. additional opportunities for the future What we guarantee is we always will evaluate with discipline and focusing to generate value to the shareholders every moment. what we guarantee is we always will evaluate with discipline and focusing to generate value to the shareholders every moment We have in the last 10 years, let's detail the cycles a bit more. we have in the last 10 years let's detail the cycles a bit more We have an important growth and this important growth up. we have an important growth and this important growth up Part of it comes to do square meters physical expansion. part of it comes to do square meters physical expansion In the last 10 years, around 5% concentrated in the beginning of the period because in the last years we almost did not grow square meters, but we grew with gain of efficiency. in the last 10 years around 5% concentrated in the beginning of the period because in the last years we almost did not grow square meters, but we grew with gain of efficiency The sales grew more 10%. the sales grew more 10% The profit and cash flow increased also. the profit and cash flow increased also We did this with market share increase. We brought different indicators to compare. PMC and Euromonitor, PMC, we grew over four times that market average. Euromonitor, we grew over 100% of the indicator, gaining market, even more market in the last few years. Obviously, when we look at the main players, we have a different event in the beginning of 2020 when with the pandemic, the entrance of new business models, the indigenous growth of other players cross border that have a higher increase or growth in the market. When we look 2023 on 2024 and 2025, there's a stability of the other business model and a continuity of our growth. When we look at the plot right beside it in terms of productivity, looking at omni players, the data is public. It completes sales compared to the area. We did this with market share increase. we did this with market share increase We brought different indicators to compare. we brought different indicators to compare PMC and Euromonitor , PMC, we grew over four times that market average. pmc and euromonitor pmc we grew over four times that market average Euromonitor , we grew over 100% of the indicator, gaining market, even more market in the last few years. euromonitor we grew over 100% of the indicator gaining market even more market in the last few years Obviously, when we look at the main players, we have a different event in the beginning of 2020 when with the pandemic, the entrance of new business models, the indigenous growth of other players cross border that have a higher increase or growth in the market. obviously when we look at the main players we have a different event in the beginning of 2020 when with the pandemic the entrance of new business models the indigenous growth of other players cross border that have a higher increase or growth in the market When we look 2023 on 2024 and 2025, there's a stability of the other business model and a continuity of our growth. when we look 2023 on 2024 and 2025 there's a stability of the other business model and a continuity of our growth When we look at the plot right beside it in terms of productivity, looking at omni players, the data is public. when we look at the plot right beside it in terms of productivity looking at omni players the data is public It completes sales compared to the area. it completes sales compared to the area Sometimes there are many publications of results adjusted here, adjusted there, category X or Y. What's valid in total? We agree. Total sales that's generated on top of the assets you have. So we're gaining. We were a reference when you look at before the pandemic. We increased our advantage two times. We increased the gap. So we need to see how we can continue in this trend. Well, when we look at also, it's important to bring context to see the cycles, the moments where the growth is coming from, the profitability where it's coming from, and what we see for the future. I brought from 2010 to 2019. It was a moment that we grew a lot, especially due to the geographic expansion in Brazil. That was a moment where we advanced throughout Brazil. Sometimes there are many publications of results adjusted here, adjusted there, category X or Y. sometimes there are many publications of results adjusted here adjusted there category x or y What's valid in total? what's valid in total We agree. we agree Total sales that's generated on top of the assets you have. total sales that's generated on top of the assets you have So we're gaining. so we're gaining We were a reference when you look at before the pandemic. we were a reference when you look at before the pandemic We increased our advantage two times. we increased our advantage two times We increased the gap. we increased the gap So we need to see how we can continue in this trend. so we need to see how we can continue in this trend Well, when we look at also, it's important to bring context to see the cycles, the moments where the growth is coming from, the profitability where it's coming from, and what we see for the future. well when we look at also it's important to bring context to see the cycles the moments where the growth is coming from the profitability where it's coming from and what we see for the future I brought from 2010 to 2019. i brought from 2010 to 2019 It was a moment that we grew a lot, especially due to the geographic expansion in Brazil. it was a moment that we grew a lot especially due to the geographic expansion in brazil That was a moment where we advanced throughout Brazil. that was a moment where we advanced throughout brazil There was a boom of shopping centers, inaugurations, a lot of stores, a lot square meter, a lot of our growth, especially in the beginning of the period came from this. Besides this, we started to grow in new countries, new geographies. Close to the end of the year, we opened Argentina and Uruguay or Uruguay then Argentina. In the beginning of the period, we started to test and see the opportunities we understood of new concepts. There was a boom of shopping centers, inaugurations, a lot of stores, a lot square meter, a lot of our growth, especially in the beginning of the period came from this. there was a boom of shopping centers inaugurations a lot of stores a lot square meter, a lot of our growth especially in the beginning of the period came from this Besides this, we started to grow in new countries, new geographies. besides this we started to grow in new countries new geographies Close to the end of the year, we opened Argentina and Uruguay or Uruguay then Argentina. close to the end of the year we opened argentina and uruguay or uruguay then argentina In the beginning of the period, we started to test and see the opportunities we understood of new concepts. in the beginning of the period we started to test and see the opportunities we understood of new concepts

Speaker 12: The Camicado was purchased earlier this in the cycle. Youcom was created in the beginning of this cycle too. They began growing and contributing, you know, minimally at first, you know, in some countries in this period. When we look at the 2022, 2023 cycle, we made major investments in infrastructure, you know, this platform that is ready now with the installed capacity to grow with revenues, profitability. The Camicado was purchased earlier this in the cycle. the camicado was purchased earlier this in the cycle Youcom was created in the beginning of this cycle too. youcom was created in the beginning of this cycle too They began growing and contributing, you know, minimally at first, you know, in some countries in this period. they began growing and contributing you know minimally at first you know in some countries in this period When we look at the 2022, 2023 cycle, we made major investments in infrastructure, you know, this platform that is ready now with the installed capacity to grow with revenues, profitability. when we look at the 2022 2023 cycle we made major investments in infrastructure you know this platform that is ready now with the installed capacity to grow with revenues profitability It was built in this cycle, 2020, 2023, you know, not many stores were open. I mean, some of them, of course, you know, we managed our portfolio. We closed some stores, we opened others, but in terms of area growth, no, we didn't have much. We grew digitally, of course, but in the moment, in the moment we were investing in efficiency of our digital platform. It was diluted, but the investments that we made, you know, allowed us to get into the following cycle, and I'm talking about 2024, 2030. You know, we're talking about the numbers, figures from 2026, 2030, but it started in the middle of 2024 and will be leveraged in 20 by 2030, but in that period, we saw that we finished our investments in infrastructure. We diluted expenses on income and improved profitability. It was built in this cycle, 2020, 2023, you know, not many stores were open. it was built in this cycle 2020 2023 you know not many stores were open I mean, some of them, of course, you know, we managed our portfolio. i mean some of them of course you know we managed our portfolio We closed some stores, we opened others, but in terms of area growth, no, we didn't have much. we closed some stores we opened others but in terms of area growth no we didn't have much We grew digitally, of course, but in the moment, in the moment we were investing in efficiency of our digital platform. we grew digitally of course but in the moment in the moment we were investing in efficiency of our digital platform It was diluted, but the investments that we made, you know, allowed us to get into the following cycle, and I'm talking about 2024, 2030. it was diluted but the investments that we made you know allowed us to get into the following cycle and i'm talking about 2024 2030 You know, we're talking about the numbers, figures from 2026, 2030, but it started in the middle of 2024 and will be leveraged in 20 by 2030, but in that period, we saw that we finished our investments in infrastructure. you know we're talking about the numbers figures from 2026 2030 but it started in the middle of 2024 and will be leveraged in 20 by 2030 but in that period we saw that we finished our investments in infrastructure We diluted expenses on income and improved profitability. we diluted expenses on income and improved profitability Daniel is going to show you a little bit more of that. And now we're ready to do even more to accelerate our expansion and other points. So the growth we had from 2024 to 2030 will be based on efficiency. And on top of that, it will be combined with the acceleration of expansion digitally, of course, with good, good profitability. When we have capacity to do so. But when we talk about strategy, we believe that, you know, there is something that says culture eats strategy for breakfast. You know, we believe, you know, if they're not aligned, yeah, it could be, but we get really, really, we're really concerned about working with culture and strategy together, you know, so they don't like overtake the other, but they can go hand in hand and both of them can succeed. So we developed our strategic plan. Daniel is going to show you a little bit more of that. daniel is going to show you a little bit more of that And now we're ready to do even more to accelerate our expansion and other points. and now we're ready to do even more to accelerate our expansion and other points So the growth we had from 2024 to 2030 will be based on efficiency. so the growth we had from 2024 to 2030 will be based on efficiency And on top of that, it will be combined with the acceleration of expansion digitally, of course, with good, good profitability. and on top of that it will be combined with the acceleration of expansion digitally of course with good good profitability When we have capacity to do so. when we have capacity to do so But when we talk about strategy, we believe that, you know, there is something that says culture eats strategy for breakfast. but when we talk about strategy we believe that you know there is something that says culture eats strategy for breakfast You know, we believe, you know, if they're not aligned, yeah, it could be, but we get really, really, we're really concerned about working with culture and strategy together, you know, so they don't like overtake the other, but they can go hand in hand and both of them can succeed. you know we believe you know if they're not aligned yeah it could be but we get really really we're really concerned about working with culture and strategy together you know so they don't like overtake the other but they can go hand in hand and both of them can succeed So we developed our strategic plan. so we developed our strategic plan We made adjustments to the essence of our culture, but we made adjustments in terms of the evolution of culture aligned with the strategy. Also, the metrics, as you say, you know, long-term and short-term incentives, they're all aligned with this strategic plan, the new organizational strategy, processes, and sustainability. They all converge, you know, they're all stated in this plan. But to talk more about this, I'd like to invite our Vice President of People and Sustainability, Regina Durante. She's going to talk a little bit more about it. We made adjustments to the essence of our culture, but we made adjustments in terms of the evolution of culture aligned with the strategy. we made adjustments to the essence of our culture but we made adjustments in terms of the evolution of culture aligned with the strategy Also, the metrics, as you say, you know, long-term and short-term incentives, they're all aligned with this strategic plan, the new organizational strategy, processes, and sustainability. also the metrics as you say you know long-term and short-term incentives they're all aligned with this strategic plan the new organizational strategy processes and sustainability They all converge, you know, they're all stated in this plan. they all converge you know they're all stated in this plan But to talk more about this, I'd like to invite our Vice President of People and Sustainability, Regina Durante. but to talk more about this i'd like to invite our vice president of people and sustainability regina durante She's going to talk a little bit more about it. she's going to talk a little bit more about it

Speaker 15: Good morning, everyone. I'm Regina. I'm going to talk to you about our people and sustainability strategy. Our strategy, you know, is grounded in four pillars. We start with the idea of cultural evolution. You know, our cultural evolution is in line with the corporate strategy. That's why strategy and culture go together. Good morning, everyone. good morning everyone I'm Regina. i'm regina I'm going to talk to you about our people and sustainability strategy. i'm going to talk to you about our people and sustainability strategy Our strategy, you know, is grounded in four pillars. our strategy you know is grounded in four pillars We start with the idea of cultural evolution. we start with the idea of cultural evolution You know, our cultural evolution is in line with the corporate strategy. you know our cultural evolution is in line with the corporate strategy That's why strategy and culture go together. that's why strategy and culture go together At Renner, we have established new organizational values, you know, as we have revisited them in a short period of time. And among those values, we chose five. It's important to remember that our purpose here will not change. We want to delight customer. This is what we're here for. And because of that, we have strengthened one of the most important values that we have, clients and customers. That's what we are here for. They are at the center of our decisions to give them what they really want with technology and innovation. The second value is high performance. We know our culture at Renner. See, it's a culture of beating expectations, and high performance elevates that even more, raises the bar even more, you know, because we want to deliver results with more quality, speed, and assertiveness. The third value is people. At Renner, we have established new organizational values, you know, as we have revisited them in a short period of time. at renner we have established new organizational values you know as we have revisited them in a short period of time And among those values, we chose five. and among those values we chose five It's important to remember that our purpose here will not change. it's important to remember that our purpose here will not change We want to delight customer. we want to delight customer This is what we're here for. this is what we're here for And because of that, we have strengthened one of the most important values that we have, clients and customers. and because of that we have strengthened one of the most important values that we have clients and customers That's what we are here for. that's what we are here for They are at the center of our decisions to give them what they really want with technology and innovation. they are at the center of our decisions to give them what they really want with technology and innovation The second value is high performance. the second value is high performance We know our culture at Renner. we know our culture at renner See, it's a culture of beating expectations, and high performance elevates that even more, raises the bar even more, you know, because we want to deliver results with more quality, speed, and assertiveness. see it's a culture of beating expectations and high performance elevates that even more raises the bar even more you know because we want to deliver results with more quality speed and assertiveness The third value is people. the third value is people This is one of the values that are most important for us because we are a company of people, of people to people, and we need to take care of our staff members, giving them an environment, a diverse, inclusive environment for high performance. Fourth value is sustainability, you know, which is today a future, which builds our future. It's the value that ensures that we're going to be there longer, and the fifth value, leadership, you know, the value, which is the propelling agent of all the others and all the behaviors that are associated to it, because leadership is the role model, is a guardian of our culture. Leadership is what makes and develops our talents for today and the future and also ensures that we are always leaders at the forefront. Second pillar is performance management. This is one of the values that are most important for us because we are a company of people, of people to people, and we need to take care of our staff members, giving them an environment, a diverse, inclusive environment for high performance. this is one of the values that are most important for us because we are a company of people of people to people and we need to take care of our staff members giving them an environment a diverse inclusive environment for high performance Fourth value is sustainability, you know, which is today a future, which builds our future. fourth value is sustainability you know which is today a future which builds our future It's the value that ensures that we're going to be there longer, and the fifth value, leadership, you know, the value, which is the propelling agent of all the others and all the behaviors that are associated to it, because leadership is the role model, is a guardian of our culture. it's the value that ensures that we're going to be there longer and the fifth value leadership you know the value which is the propelling agent of all the others and all the behaviors that are associated to it because leadership is the role model is a guardian of our culture Leadership is what makes and develops our talents for today and the future and also ensures that we are always leaders at the forefront. leadership is what makes and develops our talents for today and the future and also ensures that we are always leaders at the forefront Second pillar is performance management. second pillar is performance management Here we have two major types of incentives that are aligned with the interests of stakeholders and corporate strategy and executives and staff members' interests. You know, these are important leverages to retain people. The first incentive deals with short-term goals. You know, we have a trigger, you know, the operating results, our EBIT, same thing as main indicators. We have the net operating revenue, free cash flow, and net income. In terms of long-term incentives, we have the following indicators: earnings per share, ROIC, and relative TSR. Our third pillar is organizational structure and processes. You know, this pillar is embraced by our corporate strategy and evolving and has been giving good, effective results. We also have the right team. You know, our team is engaged with 89% of engagement. We have a team that wants to be in the company with 95% of retention among leaders. Here we have two major types of incentives that are aligned with the interests of stakeholders and corporate strategy and executives and staff members' interests. here we have two major types of incentives that are aligned with the interests of stakeholders and corporate strategy and executives and staff members' interests You know, these are important leverages to retain people. you know these are important leverages to retain people The first incentive deals with short-term goals. the first incentive deals with short-term goals You know, we have a trigger, you know, the operating results, our EBIT, same thing as main indicators. you know we have a trigger you know the operating results our ebit same thing as main indicators We have the net operating revenue, free cash flow, and net income. we have the net operating revenue free cash flow and net income In terms of long-term incentives, we have the following indicators: earnings per share, ROIC, and relative TSR. in terms of long-term incentives we have the following indicators earnings per share roic and relative tsr Our third pillar is organizational structure and processes. our third pillar is organizational structure and processes You know, this pillar is embraced by our corporate strategy and evolving and has been giving good, effective results. you know this pillar is embraced by our corporate strategy and evolving and has been giving good effective results We also have the right team. we also have the right team You know, our team is engaged with 89% of engagement. you know our team is engaged with 89% of engagement We have a team that wants to be in the company with 95% of retention among leaders. we have a team that wants to be in the company with 95% of retention among leaders Our team grows and develops with us with 66% of internal performance in the leadership positions. Fourth pillar is sustainability. You know, it's got ramifications in three major areas. The first one is sustainability and climate solutions, climate circular and regenerative solutions. Our main goal is resilience, you know, and we are very proud to remember that we were the second company, number two company in the world to adopt voluntarily the IFRS S2 report. We are also very proud to say that eight out of 10 power pieces made by us are sustainable. You know, the second pillar is human relation, human and diverse relations. Our goal here is to have a real image of Brazilian society in our staff so we can offer them selections and experiences that are even more delighting and more assertive to them. Our team grows and develops with us with 66% of internal performance in the leadership positions. our team grows and develops with us with 66% of internal performance in the leadership positions Fourth pillar is sustainability. fourth pillar is sustainability You know, it's got ramifications in three major areas. you know it's got ramifications in three major areas The first one is sustainability and climate solutions, climate circular and regenerative solutions. the first one is sustainability and climate solutions climate circular and regenerative solutions Our main goal is resilience, you know, and we are very proud to remember that we were the second company, number two company in the world to adopt voluntarily the IFRS S2 report. our main goal is resilience you know and we are very proud to remember that we were the second company number two company in the world to adopt voluntarily the ifrs s2 report We are also very proud to say that eight out of 10 power pieces made by us are sustainable. we are also very proud to say that eight out of 10 power pieces made by us are sustainable You know, the second pillar is human relation, human and diverse relations. you know the second pillar is human relation human and diverse relations Our goal here is to have a real image of Brazilian society in our staff so we can offer them selections and experiences that are even more delighting and more assertive to them. our goal here is to have a real image of brazilian society in our staff so we can offer them selections and experiences that are even more delighting and more assertive to them Today, we have 62% of women in our leaders, 48% of women in high leadership positions, and 34% of Black leaders. Third pillar is the pillar of connections that amplify. It deals with our long-term partnership with our supply chain at national and international level. The strategic partnership is important because it makes our suppliers, you know, have a unique methodology with us and so they can get all the support they need for them to have like social environmental practices, but also managerial practices. Like globally speaking, you know, the best that we have to offer to those suppliers and their management improves too. Today, 100% of our suppliers are certified both nationally and internationally. Today, we have 62% of women in our leaders, 48% of women in high leadership positions, and 34% of Black leaders. today we have 62% of women in our leaders 48% of women in high leadership positions and 34% of black leaders Third pillar is the pillar of connections that amplify. third pillar is the pillar of connections that amplify It deals with our long-term partnership with our supply chain at national and international level. it deals with our long-term partnership with our supply chain at national and international level The strategic partnership is important because it makes our suppliers, you know, have a unique methodology with us and so they can get all the support they need for them to have like social environmental practices, but also managerial practices. the strategic partnership is important because it makes our suppliers you know have a unique methodology with us and so they can get all the support they need for them to have like social environmental practices but also managerial practices Like globally speaking, you know, the best that we have to offer to those suppliers and their management improves too. like globally speaking you know the best that we have to offer to those suppliers and their management improves too Today, 100% of our suppliers are certified both nationally and internationally. today 100% of our suppliers are certified both nationally and internationally With all that strategy that I have just mentioned to you and with all the indicators, people indicators, we are certain and we're sure that we have the right strategy and the right people and the right team to deliver even more value to stakeholder and carry out this strategy with certainty. Now, to talk a little bit more about the strategy and give you details about what's next with Renner, please. Let's see. My colleagues will be here with you. Fabiana Taccola, Renner VP, Renata Altenfelder, Gustavo Yuasa, Paula Mazanék, and Alexandre Aires, our supply chain director. With all that strategy that I have just mentioned to you and with all the indicators, people indicators, we are certain and we're sure that we have the right strategy and the right people and the right team to deliver even more value to stakeholder and carry out this strategy with certainty. with all that strategy that i have just mentioned to you and with all the indicators people indicators we are certain and we're sure that we have the right strategy and the right people and the right team to deliver even more value to stakeholder and carry out this strategy with certainty Now, to talk a little bit more about the strategy and give you details about what's next with Renner, please. now to talk a little bit more about the strategy and give you details about what's next with renner please Let's see. let's see My colleagues will be here with you. my colleagues will be here with you Fabiana Taccola, Renner VP, Renata Altenfelder, Gustavo Yuasa, Paula Mazanék, and Alexandre Aires, our supply chain director. fabiana taccola renner vp renata altenfelder gustavo yuasa paula mazanék and alexandre aires our supply chain director

Speaker 13: Thank you. Good morning, everyone. Welcome. Now we're going to drill down together at BU Renner. We call it BU, but that's our brand, you know. To talk about Renner, I would like to remind you, you know, what we're talking about. Thank you. thank you Good morning, everyone. good morning everyone Welcome. welcome Now we're going to drill down together at BU Renner. now we're going to drill down together at bu renner We call it BU, but that's our brand, you know. we call it bu but that's our brand you know To talk about Renner, I would like to remind you, you know, what we're talking about. to talk about renner i would like to remind you you know what we're talking about Let's talk about this company, this brand, you know, the heart of our fashion here. In Brazil, we are the largest fashion and lifestyle brand in Brazil. Remember, we, you know, we work together with our customer. We love them. We connect with them deeply. And we are recognized as a company with a feminine soul. And to talk about feminine, so I'd like to remind you, most of our customers, over 75% of them are women or females. And they're more or less like they are ranging from 25 to 50 years old, vast majority of them. And they live and they're like upper middle class and middle class individuals mostly. But we also cater to not only feminine audiences, you know, we are a family store. We work with things for men. We work with cologne and perfumes, beauty products, accessories, shoes, kids. Let's talk about this company, this brand, you know, the heart of our fashion here. let's talk about this company this brand you know the heart of our fashion here In Brazil, we are the largest fashion and lifestyle brand in Brazil. in brazil we are the largest fashion and lifestyle brand in brazil Remember, we, you know, we work together with our customer. remember we you know we work together with our customer We love them. we love them We connect with them deeply. we connect with them deeply And we are recognized as a company with a feminine soul. and we are recognized as a company with a feminine soul And to talk about feminine, so I'd like to remind you, most of our customers, over 75% of them are women or females. and to talk about feminine so i'd like to remind you most of our customers over 75% of them are women or females And they're more or less like they are ranging from 25 to 50 years old, vast majority of them. and they're more or less like they are ranging from 25 to 50 years old vast majority of them And they live and they're like upper middle class and middle class individuals mostly. and they live and they're like upper middle class and middle class individuals mostly But we also cater to not only feminine audiences, you know, we are a family store. but we also cater to not only feminine audiences you know we are a family store We work with things for men. we work with things for men We work with cologne and perfumes, beauty products, accessories, shoes, kids. we work with cologne and perfumes beauty products accessories shoes kids We're very comprehensive. What's unique about Renner in relation to our competitors? I think, you know, people, it's important to remember that what makes us unique is the way that we translate collections. That's what we call the lifestyle methodology. This is more like, more or less like, how do you get information that is out there in several systems on the planet and translate that into assertive collections that delight our customers? You know, this methodology, the consistency of this methodology year after year is what makes us unique. You know, Fabio mentioned it, you know, sales square meter is so high. How do we get that? That's not enough. There's more to it. We, you know, there's that nice part, the Brazilian aspect of it. You know, what makes us Brazilian is the deep knowledge that we have of our clients, of our customers. We're very comprehensive. we're very comprehensive What's unique about Renner in relation to our competitors? what's unique about renner in relation to our competitors I think, you know, people, it's important to remember that what makes us unique is the way that we translate collections. i think you know people it's important to remember that what makes us unique is the way that we translate collections That's what we call the lifestyle methodology. that's what we call the lifestyle methodology This is more like, more or less like, how do you get information that is out there in several systems on the planet and translate that into assertive collections that delight our customers? this is more like more or less like how do you get information that is out there in several systems on the planet and translate that into assertive collections that delight our customers You know, this methodology, the consistency of this methodology year after year is what makes us unique. you know this methodology the consistency of this methodology year after year is what makes us unique You know, Fabio mentioned it, you know, sales square meter is so high. you know fabio mentioned it you know sales square meter is so high How do we get that? how do we get that That's not enough. that's not enough There's more to it. there's more to it We, you know, there's that nice part, the Brazilian aspect of it. we you know there's that nice part the brazilian aspect of it You know, what makes us Brazilian is the deep knowledge that we have of our clients, of our customers. you know what makes us brazilian is the deep knowledge that we have of our clients of our customers You know, you cannot make caricatures of that. You know, we work real hard to translate fashion with the Brazilian influence. Something very important too. We are recognized by our customers for the quality of our products. This is a reference. We are a reference. And of course, no less important is equally important, you know, for our customers, our value, our products have an aggregate value that is really, really high. And this gives us, you know, this makes us accessible to them. And what does that mean? You know, people, I just as a reminder, Lojas Renner is not only the largest brand of fashion and lifestyle in Brazil. It's not just the largest retail, fashion retail store. It is the most valuable brand in Brazil in terms of fashion and lifestyle. We are the most beloved store and brand. You know, you cannot make caricatures of that. you know you cannot make caricatures of that You know, we work real hard to translate fashion with the Brazilian influence. you know we work real hard to translate fashion with the brazilian influence Something very important too. something very important too We are recognized by our customers for the quality of our products. we are recognized by our customers for the quality of our products This is a reference. this is a reference We are a reference. we are a reference And of course, no less important is equally important, you know, for our customers, our value, our products have an aggregate value that is really, really high. and of course no less important is equally important you know for our customers our value our products have an aggregate value that is really really high And this gives us, you know, this makes us accessible to them. and this gives us you know this makes us accessible to them And what does that mean? and what does that mean You know, people, I just as a reminder, Lojas Renner is not only the largest brand of fashion and lifestyle in Brazil. you know people i just as a reminder lojas renner is not only the largest brand of fashion and lifestyle in brazil It's not just the largest retail, fashion retail store. it's not just the largest retail fashion retail store It is the most valuable brand in Brazil in terms of fashion and lifestyle. it is the most valuable brand in brazil in terms of fashion and lifestyle We are the most beloved store and brand. we are the most beloved store and brand We have the largest number of followers on social media. Our top of mind, you know, is almost twice as big, as large as the second, the runner-up. You know, our competitive NPS among the omni players, you know, we have the largest NPS clients recognize us to a certain. And our share of voice, of course, is really big. Fabio mentioned the cycle. What comes next? How are we getting ready for that? What's the cycle of growth? And to talk about it, you know, the major goal of this new cycle is to evolve from a recognized retail brand to a fashion brand. You know, there's something that we say here internally, you know, we talk about purchasing at Renner, purchasing at Renner to purchase Renner. And then there are three pillars in this scenario. We have the largest number of followers on social media. we have the largest number of followers on social media Our top of mind, you know, is almost twice as big, as large as the second, the runner-up. our top of mind you know is almost twice as big as large as the second the runner-up You know, our competitive NPS among the omni players, you know, we have the largest NPS clients recognize us to a certain. you know our competitive nps among the omni players you know we have the largest nps clients recognize us to a certain And our share of voice, of course, is really big. and our share of voice of course is really big Fabio mentioned the cycle. fabio mentioned the cycle What comes next? what comes next How are we getting ready for that? how are we getting ready for that What's the cycle of growth? what's the cycle of growth And to talk about it, you know, the major goal of this new cycle is to evolve from a recognized retail brand to a fashion brand. and to talk about it you know the major goal of this new cycle is to evolve from a recognized retail brand to a fashion brand You know, there's something that we say here internally, you know, we talk about purchasing at Renner, purchasing at Renner to purchase Renner. you know there's something that we say here internally you know we talk about purchasing at renner purchasing at renner to purchase renner And then there are three pillars in this scenario. and then there are three pillars in this scenario We're going to work with the products and delighting experiences, and we're going to deal with the responsible fashion brand. What do we expect to get out of it? To continue growing in terms of number of customers, to continue growing, you know, having loyalty to our customers, you know, increase the conversion and average expenses. You know, we're the largest store in Brazil in which customers spend more. You know, what else? We're going to be loyal to them. We want to bring them to us, but mostly, you know, we're talking about, of course, increase stock, the margin, and other things. But the most important thing here is to be the most relevant fashion company in our customers' wardrobes, in our closet, in their closets, to have the largest number of pieces in their closets. This is what we want. We're going to work with the products and delighting experiences, and we're going to deal with the responsible fashion brand. we're going to work with the products and delighting experiences and we're going to deal with the responsible fashion brand What do we expect to get out of it? what do we expect to get out of it To continue growing in terms of number of customers, to continue growing, you know, having loyalty to our customers, you know, increase the conversion and average expenses. to continue growing in terms of number of customers to continue growing you know having loyalty to our customers you know increase the conversion and average expenses You know, we're the largest store in Brazil in which customers spend more. you know we're the largest store in brazil in which customers spend more You know, what else? you know what else We're going to be loyal to them. we're going to be loyal to them We want to bring them to us, but mostly, you know, we're talking about, of course, increase stock, the margin, and other things. we want to bring them to us but mostly you know we're talking about of course increase stock the margin and other things But the most important thing here is to be the most relevant fashion company in our customers' wardrobes, in our closet, in their closets, to have the largest number of pieces in their closets. but the most important thing here is to be the most relevant fashion company in our customers' wardrobes in our closet in their closets to have the largest number of pieces in their closets This is what we want. this is what we want And to talk a little bit more about it, you know, it's very important. Our first pillar. Renata is going to talk about the first pillar in our responsible fashion. Thank you. And to talk a little bit more about it, you know, it's very important. and to talk a little bit more about it you know it's very important Our first pillar. our first pillar Renata is going to talk about the first pillar in our responsible fashion. renata is going to talk about the first pillar in our responsible fashion Thank you. thank you

Speaker 5: Good morning. I'm very happy to be here with all of you. And just to start, I'd like to talk about the brand, Renner, the brand. I'd like to show you a video. And so that's it. This is where we're going to stay. We're going to stay in the middle of it all, you know, between the desire of being myself and the fear of being myself. When did our major expression tool become this? Let's imagine the fashion that we love. With, you know, let's imagine, let's sew, let's take risks, let's mix, let's try out, let's revolutionize. Oh, and breathe. You can reinvent how to do with fashion. Good morning. good morning I'm very happy to be here with all of you. i'm very happy to be here with all of you And just to start, I'd like to talk about the brand, Renner, the brand. and just to start i'd like to talk about the brand renner the brand I'd like to show you a video. i'd like to show you a video And so that's it. and so that's it This is where we're going to stay. this is where we're going to stay we're going to stay We're going to stay in the middle of it all, you know, between the desire of being myself and the fear of being myself. we're going to stay in the middle of it all you know between the desire of being myself and the fear of being myself When did our major expression tool become this? when did our major expression tool become this Let's imagine the fashion that we love. let's imagine the fashion that we love With, you know, let's imagine, let's sew, let's take risks, let's mix, let's try out, let's revolutionize. with you know let's imagine let's sew let's take risks let's mix let's try out let's revolutionize Oh, and breathe. oh and breathe You can reinvent how to do with fashion. you can reinvent how to do with fashion Renner has been around for a while, and it'll help you how to experience fashion your way, your rhythm. Please be yourself. Fashion is just the beginning. This manifesto was released in March this year as an invitation for our customers, you know, to recreate the way they see fashion with more authenticity, originality, lightness, with the freedom to be who they are. I'm very proud to say that all the images that are in the video you just saw are images of campaigns that were released after this new platform, Be Yourself. Ou seja, você. But we're here to talk about this strategy. How are we going to construct this new moment? How are we going to evolve into this fashion brand? First of all, we're going to work on delighting experiences in every single point of contact and the omni experience. Renner has been around for a while, and it'll help you how to experience fashion your way, your rhythm. renner has been around for a while and it'll help you how to experience fashion your way your rhythm Please be yourself. please be yourself Fashion is just the beginning. fashion is just the beginning This manifesto was released in March this year as an invitation for our customers, you know, to recreate the way they see fashion with more authenticity, originality, lightness, with the freedom to be who they are. this manifesto was released in march this year as an invitation for our customers you know to recreate the way they see fashion with more authenticity originality lightness with the freedom to be who they are I'm very proud to say that all the images that are in the video you just saw are images of campaigns that were released after this new platform, Be Yourself. i'm very proud to say that all the images that are in the video you just saw are images of campaigns that were released after this new platform be yourself Ou seja, você. ou seja você But we're here to talk about this strategy. but we're here to talk about this strategy How are we going to construct this new moment? how are we going to construct this new moment How are we going to evolve into this fashion brand? how are we going to evolve into this fashion brand First of all, we're going to work on delighting experiences in every single point of contact and the omni experience. first of all we're going to work on delighting experiences in every single point of contact and the omni experience I know customers, we don't use the words on and off anymore. They are, they have merged. These experiences bring us some narratives that talk about fashion, behavior, sustainability, which is something that's been growing in importance in terms of purchasing decisions. Almost 70% of the people in Brazil today consider fashion, some fashion attribute, consider sustainability when they connect to a fashion brand, and so we gain a lot from it, so we are the favorites of these customers when we do that. Also, we're going to reinforce our fashion expertise. We know a lot about fashion. You know, our lifestyle fashion, you know, we translate fashion for our customers, for what they want, and we are going to do that by connecting with cultural moments and moments of the cycle of fashion in the country. Because, you know, fashion is culture. I know customers, we don't use the words on and off anymore. i know customers we don't use the words on and off anymore They are, they have merged. they are they have merged These experiences bring us some narratives that talk about fashion, behavior, sustainability, which is something that's been growing in importance in terms of purchasing decisions. these experiences bring us some narratives that talk about fashion behavior sustainability which is something that's been growing in importance in terms of purchasing decisions Almost 70% of the people in Brazil today consider fashion, some fashion attribute, consider sustainability when they connect to a fashion brand, and so we gain a lot from it, so we are the favorites of these customers when we do that. almost 70% of the people in brazil today consider fashion some fashion attribute consider sustainability when they connect to a fashion brand and so we gain a lot from it so we are the favorites of these customers when we do that Also, we're going to reinforce our fashion expertise. also we're going to reinforce our fashion expertise We know a lot about fashion. we know a lot about fashion You know, our lifestyle fashion, you know, we translate fashion for our customers, for what they want, and we are going to do that by connecting with cultural moments and moments of the cycle of fashion in the country. you know our lifestyle fashion you know we translate fashion for our customers for what they want and we are going to do that by connecting with cultural moments and moments of the cycle of fashion in the country Because, you know, fashion is culture. because you know fashion is culture Also, we're going to use several data, you know, artificial intelligence to boost the emotional connection with them and talk to these customers even more. You know, how are we going to connect with them? How are we going to give them relevant information that they need? You know, customers today, their journey is not like, it's not like steady. You know, today's things are very fluid. And also, we know who these customers are. We know these girls. How do we know them? How do we activate our retailers? You know, first, we're going to look inside, purchase information, market information, demographics, what's happening on social media, what is happening in culture. Also, we're going to, we also do research, very specialized research into fashion, NPS, what they expect, what customers expect, what they believe. What do they believe? Also, we're going to use several data, you know, artificial intelligence to boost the emotional connection with them and talk to these customers even more. also we're going to use several data you know artificial intelligence to boost the emotional connection with them and talk to these customers even more You know, how are we going to connect with them? you know how are we going to connect with them How are we going to give them relevant information that they need? how are we going to give them relevant information that they need You know, customers today, their journey is not like, it's not like steady. you know customers today their journey is not like it's not like steady You know, today's things are very fluid. you know today's things are very fluid And also, we know who these customers are. and also we know who these customers are We know these girls. we know these girls How do we know them? how do we know them How do we activate our retailers? how do we activate our retailers You know, first, we're going to look inside, purchase information, market information, demographics, what's happening on social media, what is happening in culture. you know first we're going to look inside purchase information market information demographics what's happening on social media what is happening in culture Also, we're going to, we also do research, very specialized research into fashion, NPS, what they expect, what customers expect, what they believe. also we're going to we also do research very specialized research into fashion nps what they expect what customers expect what they believe What do they believe? what do they believe You know, we always say that fashion is an expression, tool of expression. When we get dressed, when we, you know, we want to communicate something, even when we believe we're not thinking about it. And so whenever we talk to these women, what are they telling us? They're telling us that their journeys are fluid, they're multifaceted. Fashion is something very important for them. Yeah, it is. And they know that Renner is the most important brand connected to quality. And you know, these figures here on the left make us very proud. When we released our platform in March this year, we did some research. And since we released Ou seja, você Be Yourself, it grew 25 points in recognition as a brand that not only sells clothes, but is authentic. We know fashion, we are original. We have a lot of quality. You know, we always say that fashion is an expression, tool of expression. you know we always say that fashion is an expression tool of expression When we get dressed, when we, you know, we want to communicate something, even when we believe we're not thinking about it. when we get dressed when we you know we want to communicate something even when we believe we're not thinking about it And so whenever we talk to these women, what are they telling us? and so whenever we talk to these women what are they telling us They're telling us that their journeys are fluid, they're multifaceted. they're telling us that their journeys are fluid they're multifaceted Fashion is something very important for them. fashion is something very important for them Yeah, it is. yeah it is And they know that Renner is the most important brand connected to quality. and they know that renner is the most important brand connected to quality And you know, these figures here on the left make us very proud. and you know these figures here on the left make us very proud When we released our platform in March this year, we did some research. when we released our platform in march this year we did some research And since we released Ou seja, você Be Yourself, it grew 25 points in recognition as a brand that not only sells clothes, but is authentic. and since we released ou seja, você be yourself it grew 25 points in recognition as a brand that not only sells clothes but is authentic We know fashion, we are original. we know fashion we are original We have a lot of quality. we have a lot of quality

Speaker 16: Knowing who is this woman, this consumer, and what they are looking for, how do we get to them? First, we create these clusters. Don't worry, it won't be one in each box. You change the box during the day. But we create these clusters of behaviors of the consumer. We create content based on this, and we distribute the content in different points of contact, media points of sale, digital, SAC, an event like this. For every point of contact, you need to bring this information. And this has brought results. Our base of customers here, I'm talking about the brand Renner. Fabio was talking about 20 million customers because we're talking about all of our brands. 19 million customers is the brand Renner. It's a base that grew 16% in the last two years. Grew our omni base, also the consumer that buys on digital and physical. Knowing who is this woman, this consumer, and what they are looking for, how do we get to them? knowing who is this woman this consumer and what they are looking for how do we get to them First, we create these clusters. first we create these clusters Don't worry, it won't be one in each box. don't worry it won't be one in each box You change the box during the day. you change the box during the day But we create these clusters of behaviors of the consumer. but we create these clusters of behaviors of the consumer We create content based on this, and we distribute the content in different points of contact, media points of sale, digital, SAC, an event like this. we create content based on this and we distribute the content in different points of contact media points of sale digital sac an event like this For every point of contact, you need to bring this information. for every point of contact you need to bring this information And this has brought results. and this has brought results Our base of customers here, I'm talking about the brand Renner. our base of customers here i'm talking about the brand renner Fabio was talking about 20 million customers because we're talking about all of our brands. 19 million customers is the brand Renner. fabio was talking about 20 million customers because we're talking about all of our brands 19 million customers is the brand renner It's a base that grew 16% in the last two years. it's a base that grew 16% in the last two years Grew our omni base, also the consumer that buys on digital and physical. grew our omni base also the consumer that buys on digital and physical And in very important data, we grew 33% in base of loyal and ultra loyal customers. They come more to our stores, the brick and mortar or online. They buy. The average expenditure is over four times as high. We have a very strong brand. We know a lot about our consumer, and we're doing, we're making this invitation to recreate and transform the way he uses fashion, and Renner should be his tool for expression so they can say who they are. I'm sorry, the audio is very low. Here, I want to take a step back. A step back, remember a bit our normal curve of fashion trend so I can show a bit where Renner is positioned. When we look at the normal curve of fashion, Renner is exactly here. What is Renner? Renner is a trend launcher in terms of fashion. And in very important data, we grew 33% in base of loyal and ultra loyal customers. and in very important data we grew 33% in base of loyal and ultra loyal customers They come more to our stores, the brick and mortar or online. they come more to our stores the brick and mortar or online They buy. they buy The average expenditure is over four times as high. the average expenditure is over four times as high We have a very strong brand. we have a very strong brand We know a lot about our consumer, and we're doing, we're making this invitation to recreate and transform the way he uses fashion, and Renner should be his tool for expression so they can say who they are. we know a lot about our consumer and we're doing we're making this invitation to recreate and transform the way he uses fashion and renner should be his tool for expression so they can say who they are I'm sorry, the audio is very low. i'm sorry the audio is very low Here, I want to take a step back. here i want to take a step back A step back, remember a bit our normal curve of fashion trend so I can show a bit where Renner is positioned. a step back remember a bit our normal curve of fashion trend so i can show a bit where renner is positioned When we look at the normal curve of fashion, Renner is exactly here. when we look at the normal curve of fashion renner is exactly here What is Renner? what is renner Renner is a trend launcher in terms of fashion. renner is a trend launcher in terms of fashion We are positioned before the hype, so it is not the trendsetters, so-called the fashion creator, and we approach the entire mainstream, but we position ourselves here due to three important reasons. First one, the majority of our competitors is in the mainstream, the majority of them, so being here in the launch before the hype, you have a capacity to capture value that is higher. The second important point of this is that we are always testing product all the time, and you can discover there's a lot of analytics here, many tools to find out what are the products that will go up, that will explode, that will become hype, or the potential products that will become hype, and having this before the hype, it's an avenue of opportunities and advantages, and there's a third point, more important for me and for us, is more relevant. We are positioned before the hype, so it is not the trendsetters, so-called the fashion creator, and we approach the entire mainstream, but we position ourselves here due to three important reasons. we are positioned before the hype so it is not the trendsetters so-called the fashion creator and we approach the entire mainstream but we position ourselves here due to three important reasons First one, the majority of our competitors is in the mainstream, the majority of them, so being here in the launch before the hype, you have a capacity to capture value that is higher. first one the majority of our competitors is in the mainstream the majority of them so being here in the launch before the hype you have a capacity to capture value that is higher The second important point of this is that we are always testing product all the time, and you can discover there's a lot of analytics here, many tools to find out what are the products that will go up, that will explode, that will become hype, or the potential products that will become hype, and having this before the hype, it's an avenue of opportunities and advantages, and there's a third point, more important for me and for us, is more relevant. the second important point of this is that we are always testing product all the time and you can discover there's a lot of analytics here many tools to find out what are the products that will go up that will explode that will become hype or the potential products that will become hype and having this before the hype it's an avenue of opportunities and advantages and there's a third point more important for me and for us is more relevant The mind of the consumer, he starts to perceive that Renner has products that are a trend before the competitor. The visits are more frequent. And you have that mindset of the customer, the brand, a fashion reference and lifestyle reference for this customer. Talking about a productive process, how is Renner? How is Renner? We must remember we have long term, big collections. It doesn't have to be urgent. We prepare for what we choose as a trend, forecast and plan the next season of our collections, big volumes, essential products. This is in long. And you have the in season. And on in season, basically, we have two big blocks of creation of products and collections. First is short term. Short term are smaller collections produced and delivered on that season. Why? We have collabs. The mind of the consumer, he starts to perceive that Renner has products that are a trend before the competitor. the mind of the consumer he starts to perceive that renner has products that are a trend before the competitor The visits are more frequent. the visits are more frequent And you have that mindset of the customer, the brand, a fashion reference and lifestyle reference for this customer. and you have that mindset of the customer the brand a fashion reference and lifestyle reference for this customer Talking about a productive process, how is Renner? talking about a productive process how is renner How is Renner? how is renner We must remember we have long term, big collections. we must remember we have long term big collections It doesn't have to be urgent. it doesn't have to be urgent We prepare for what we choose as a trend, forecast and plan the next season of our collections, big volumes, essential products. we prepare for what we choose as a trend forecast and plan the next season of our collections big volumes essential products This is in long. this is in long And you have the in season. and you have the in season And on in season, basically, we have two big blocks of creation of products and collections. and on in season basically we have two big blocks of creation of products and collections First is short term. first is short term Short term are smaller collections produced and delivered on that season. short term are smaller collections produced and delivered on that season Why? why We have collabs. we have collabs You have a space that you leave in your portfolio to be able to react. The more in season, the better to be what? More assertive regarding the consumer expectation. The consumer is being super bombarded. It has information about fashion all of the time. The companies don't have the exclusiveness of information, and some get prepared for this, and many things happen in that season itself, and this process is important. Open portfolios that we work strongly on, and we have the reactivity also, then we're talking about the fast trends. Eventually, you see concerts, a soap opera series, people that are doing something, cultural events worldwide that sometimes something explodes a certain trend, something war, somebody wore something and that exploded as a fashion reference company. That's very important to bring and make available to our consumer, then we use reactivity but not only for that. You have a space that you leave in your portfolio to be able to react. you have a space that you leave in your portfolio to be able to react The more in season, the better to be what? the more in season the better to be what More assertive regarding the consumer expectation. more assertive regarding the consumer expectation The consumer is being super bombarded. the consumer is being super bombarded It has information about fashion all of the time. it has information about fashion all of the time The companies don't have the exclusiveness of information, and some get prepared for this, and many things happen in that season itself, and this process is important. the companies don't have the exclusiveness of information and some get prepared for this and many things happen in that season itself and this process is important Open portfolios that we work strongly on, and we have the reactivity also, then we're talking about the fast trends. open portfolios that we work strongly on and we have the reactivity also then we're talking about the fast trends Eventually, you see concerts, a soap opera series, people that are doing something, cultural events worldwide that sometimes something explodes a certain trend, something war, somebody wore something and that exploded as a fashion reference company. eventually you see concerts a soap opera series people that are doing something cultural events worldwide that sometimes something explodes a certain trend something war somebody wore something and that exploded as a fashion reference company That's very important to bring and make available to our consumer, then we use reactivity but not only for that. that's very important to bring and make available to our consumer then we use reactivity but not only for that We use reactivity also when we're testing all the time in the productive process. We're understanding in small batches what is a nice product before the hype. We also scale these products that were assertive. So reactivity for us is to scale product and it retrofits the short and eventually depending on the trend that we observe, it can become even a long term and next season in larger scale. Guys, against reactivity, I give you a few numbers. We started with 5%. Now we're in 20% of domestic. The big objective is to be between 30% and 40% here. Of course, gaining margin, stock turnaround, conversion that is stronger, bringing sales increment also. Capturing trends. We produce the productive cycle of availability of the customer, analyze very fast. This is an important tool. It's not just analyze the past. Remember, this is forecast. We use reactivity also when we're testing all the time in the productive process. we use reactivity also when we're testing all the time in the productive process We're understanding in small batches what is a nice product before the hype. we're understanding in small batches what is a nice product before the hype We also scale these products that were assertive. we also scale these products that were assertive So reactivity for us is to scale product and it retrofits the short and eventually depending on the trend that we observe, it can become even a long term and next season in larger scale. so reactivity for us is to scale product and it retrofits the short and eventually depending on the trend that we observe it can become even a long term and next season in larger scale Guys, against reactivity, I give you a few numbers. guys against reactivity i give you a few numbers We started with 5%. we started with 5% Now we're in 20% of domestic. now we're in 20% of domestic The big objective is to be between 30% and 40% here. the big objective is to be between 30% and 40% here Of course, gaining margin, stock turnaround, conversion that is stronger, bringing sales increment also. of course gaining margin stock turnaround conversion that is stronger bringing sales increment also Capturing trends. capturing trends We produce the productive cycle of availability of the customer, analyze very fast. we produce the productive cycle of availability of the customer analyze very fast This is an important tool. this is an important tool It's not just analyze the past. it's not just analyze the past Remember, this is forecast. remember this is forecast It's looking to the future and scale. I want to call Alexandre Aires to tell us how supply is supporting this strategy. It's looking to the future and scale. it's looking to the future and scale I want to call Alexandre Aires to tell us how supply is supporting this strategy. i want to call alexandre aires to tell us how supply is supporting this strategy

Speaker 13: Thank you, Fabi. Good morning, everyone. It's a pleasure to be here to present supply chain as competitive advantage, not just for Renner, but for Lojas Renner S.A. Our supply chain area has the ambition to connect the strategy of collection development product that Fabi just mentioned with production, distribution, and delivery for all of our stores and all of our channels. We do this divided in three big areas. An area is of sourcing, responsible for the management, development of suppliers in the domestic chain and international chain. A planning area and supply that makes the best decisions in terms of distribution of product, using technology, artificial intelligence to potentialize the use of our supply model through SKUs. Thank you, Fabi. thank you fabi Good morning, everyone. good morning everyone It's a pleasure to be here to present supply chain as competitive advantage, not just for Renner, but for Lojas Renner S.A. it's a pleasure to be here to present supply chain as competitive advantage not just for renner but for lojas renner s.a Our supply chain area has the ambition to connect the strategy of collection development product that Fabi just mentioned with production, distribution, and delivery for all of our stores and all of our channels. our supply chain area has the ambition to connect the strategy of collection development product that fabi just mentioned with production distribution and delivery for all of our stores and all of our channels We do this divided in three big areas. we do this divided in three big areas An area is of sourcing, responsible for the management, development of suppliers in the domestic chain and international chain. an area is of sourcing responsible for the management development of suppliers in the domestic chain and international chain A planning area and supply that makes the best decisions in terms of distribution of product, using technology, artificial intelligence to potentialize the use of our supply model through SKUs. a planning area and supply that makes the best decisions in terms of distribution of product using technology artificial intelligence to potentialize the use of our supply model through skus Finally, a logistics area that is able to use the distribution centers and transportation, making the product arrive at the right time in all of the points, stores, and channels also. It's important to say that this supply chain is available to all the business units of Lojas Renner S.A. With this, we can develop an area that supports the entire company with scale, synergy, becoming a competitive differential. I'm going to talk a bit about sourcing. Investor Day of 2023, we signalize what would be the areas that we would act in the following years. I would like to share the advances we had in these areas and the results that we already captured. First, we work a lot in an active triangulation of the acquisition of cloth from the raw material suppliers and finished material suppliers integrated in our collections. Finally, a logistics area that is able to use the distribution centers and transportation, making the product arrive at the right time in all of the points, stores, and channels also. finally a logistics area that is able to use the distribution centers and transportation making the product arrive at the right time in all of the points stores and channels also It's important to say that this supply chain is available to all the business units of Lojas Renner S.A. it's important to say that this supply chain is available to all the business units of lojas renner s.a With this, we can develop an area that supports the entire company with scale, synergy, becoming a competitive differential. with this we can develop an area that supports the entire company with scale synergy becoming a competitive differential I'm going to talk a bit about sourcing. i'm going to talk a bit about sourcing Investor Day of 2023, we signalize what would be the areas that we would act in the following years. investor day of 2023 we signalize what would be the areas that we would act in the following years I would like to share the advances we had in these areas and the results that we already captured. i would like to share the advances we had in these areas and the results that we already captured First, we work a lot in an active triangulation of the acquisition of cloth from the raw material suppliers and finished material suppliers integrated in our collections. first we work a lot in an active triangulation of the acquisition of cloth from the raw material suppliers and finished material suppliers integrated in our collections With this, reducing the time that we have to develop the collections and have them in our stores. Also, we work intensively integrating the system and supply chain domestically, having visibility end to end, being able to allocate orders with the capacity according to the capacity of the supplier, more efficiently reducing issues of lack of capacity or inefficiency or making the chain anxious. We do this for over 50% of the domestic supply chain. Finally, we work also in the development in the local suppliers, investing over BRL 16 million through partners, 80%, BRL 80 million that generated the adoption of processes that are more efficient, renewal of our manufacturing domestically with 20% gain in productivity and an increase of gross margin of 1.5 percentage points in the 20 major suppliers of the company. If we add this up, we have many benefits. With this, reducing the time that we have to develop the collections and have them in our stores. with this reducing the time that we have to develop the collections and have them in our stores Also, we work intensively integrating the system and supply chain domestically, having visibility end to end, being able to allocate orders with the capacity according to the capacity of the supplier, more efficiently reducing issues of lack of capacity or inefficiency or making the chain anxious. also we work intensively integrating the system and supply chain domestically having visibility end to end being able to allocate orders with the capacity according to the capacity of the supplier more efficiently reducing issues of lack of capacity or inefficiency or making the chain anxious We do this for over 50% of the domestic supply chain. we do this for over 50% of the domestic supply chain Finally, we work also in the development in the local suppliers, investing over BRL 16 million through partners, 80%, BRL 80 million that generated the adoption of processes that are more efficient, renewal of our manufacturing domestically with 20% gain in productivity and an increase of gross margin of 1.5 percentage points in the 20 major suppliers of the company. finally we work also in the development in the local suppliers investing over brl 16 million through partners 80% brl 80 million that generated the adoption of processes that are more efficient renewal of our manufacturing domestically with 20% gain in productivity and an increase of gross margin of 1.5 percentage points in the 20 major suppliers of the company If we add this up, we have many benefits. if we add this up we have many benefits I would like to highlight one, reducing 26% the time of production of a collection until it's available. It's a strategic differential for the company, as Fabi just presented, the capacity to react fast to trends and products that perform in a positive way. Another focus of action of the company during the last few years was to work their supply model. We adopted a supply model through SKUs for all the products in the company. It's a winning model adopted by the main retailers in the world in terms of fashion, and it presupposes that we stop allocating or supplying the stores using packs, which are predetermined packs that we sent all the company stores. These are inefficient to meet the different demands that we see in the consumer market according to each store. I would like to highlight one, reducing 26% the time of production of a collection until it's available. i would like to highlight one reducing 26% the time of production of a collection until it's available It's a strategic differential for the company, as Fabi just presented, the capacity to react fast to trends and products that perform in a positive way. it's a strategic differential for the company as fabi just presented the capacity to react fast to trends and products that perform in a positive way Another focus of action of the company during the last few years was to work their supply model. another focus of action of the company during the last few years was to work their supply model We adopted a supply model through SKUs for all the products in the company. we adopted a supply model through skus for all the products in the company It's a winning model adopted by the main retailers in the world in terms of fashion, and it presupposes that we stop allocating or supplying the stores using packs, which are predetermined packs that we sent all the company stores. it's a winning model adopted by the main retailers in the world in terms of fashion and it presupposes that we stop allocating or supplying the stores using packs which are predetermined packs that we sent all the company stores These are inefficient to meet the different demands that we see in the consumer market according to each store. these are inefficient to meet the different demands that we see in the consumer market according to each store Now we operate with an SKU model that allows us to customize specific grids for each store adequate for the standard of demand that we have in each store. The company doesn't do this now. We're doing this for many years, especially for the base and the middle of the pyramid products, basic products where we captured the gains that we mentioned. The gains generate an increase in sales because I don't have a stock break in a few sizes and I push sales in the stores and I stop having, I have bigger margin. I don't have too many sizes that are not being sold. With this, I improve the turnover in stock. Now we operate with an SKU model that allows us to customize specific grids for each store adequate for the standard of demand that we have in each store. now we operate with an sku model that allows us to customize specific grids for each store adequate for the standard of demand that we have in each store The company doesn't do this now. the company doesn't do this now We're doing this for many years, especially for the base and the middle of the pyramid products, basic products where we captured the gains that we mentioned. we're doing this for many years especially for the base and the middle of the pyramid products basic products where we captured the gains that we mentioned The gains generate an increase in sales because I don't have a stock break in a few sizes and I push sales in the stores and I stop having, I have bigger margin. the gains generate an increase in sales because i don't have a stock break in a few sizes and i push sales in the stores and i stop having i have bigger margin I don't have too many sizes that are not being sold. i don't have too many sizes that are not being sold With this, I improve the turnover in stock. with this i improve the turnover in stock With the new distribution center in São Paulo, completely operational since 2024, sized to support the growth plan that we see today, we can increase. We already increased the business model, the SKU business model for all the products. With this, the middle of the pyramid products and the top of the pyramid products, the more fashion products are operating 100% SKU. This implementation brought gains. Increase of the availability of products in stores resulted in sales over 10%. Fashion products increase, an increase of over 10% of the pieces, these type of products. To reinforce the benefits of the supply model, we prepared a video that explains the benefits compared to the per pack model, the previous model. Let's take a look. With the new distribution center in São Paulo, completely operational since 2024, sized to support the growth plan that we see today, we can increase. with the new distribution center in são paulo completely operational since 2024 sized to support the growth plan that we see today we can increase We already increased the business model, the SKU business model for all the products. we already increased the business model the sku business model for all the products With this, the middle of the pyramid products and the top of the pyramid products, the more fashion products are operating 100% SKU. with this the middle of the pyramid products and the top of the pyramid products the more fashion products are operating 100% sku This implementation brought gains. this implementation brought gains Increase of the availability of products in stores resulted in sales over 10%. increase of the availability of products in stores resulted in sales over 10% Fashion products increase, an increase of over 10% of the pieces, these type of products. fashion products increase an increase of over 10% of the pieces these type of products To reinforce the benefits of the supply model, we prepared a video that explains the benefits compared to the per pack model, the previous model. to reinforce the benefits of the supply model we prepared a video that explains the benefits compared to the per pack model the previous model Let's take a look. let's take a look In this way, omnichannel distribution that uses the scale we have to supply stores, the capillarity that we have in all the states of Brazil, adding this to the e-commerce operation that has a relevant impact associated to the supply model that's precise according to SKUs, allows to support and is essential to capture the opportunities for growth that we have ahead of us. I'm going to mention a bit how this strategy, the combination of the two factors, the two strengths will leverage the strategies we have. When we talk about the increase in productivity in stores, the fact that we are able to have this sorting adequate for each store will result in square meter sale higher, avoiding excess and breaking stock. We have a better result in each store. In this way, omnichannel distribution that uses the scale we have to supply stores, the capillarity that we have in all the states of Brazil, adding this to the e-commerce operation that has a relevant impact associated to the supply model that's precise according to SKUs, allows to support and is essential to capture the opportunities for growth that we have ahead of us. in this way omnichannel distribution that uses the scale we have to supply stores the capillarity that we have in all the states of brazil adding this to the e-commerce operation that has a relevant impact associated to the supply model that's precise according to skus allows to support and is essential to capture the opportunities for growth that we have ahead of us I'm going to mention a bit how this strategy, the combination of the two factors, the two strengths will leverage the strategies we have. i'm going to mention a bit how this strategy the combination of the two factors the two strengths will leverage the strategies we have When we talk about the increase in productivity in stores, the fact that we are able to have this sorting adequate for each store will result in square meter sale higher, avoiding excess and breaking stock. when we talk about the increase in productivity in stores the fact that we are able to have this sorting adequate for each store will result in square meter sale higher avoiding excess and breaking stock We have a better result in each store. we have a better result in each store The same way, the same supply model that's precise allows us to have a gain in sorting in all the sizes of stores, but the smaller sizes that suffered by pack supply that generated excess and didn't allow to restock in a certain size and now is more up. These have the higher benefit. We're going to see that in strategic leverage for organic expansion of the company for non-serviced areas. These size, smaller sizes stores are fundamental. Therefore, the supply model is an important enabler for them to be efficient and to support the future plan of the company. Finally, we have a leverage, which is the increase of penetration of digital. With omnichannel supply that uses the scale that we have in terms of stores, synergy technology operating integrated both channels, we reduce expressively the cost of the operation of the distribution center and the transportation. The same way, the same supply model that's precise allows us to have a gain in sorting in all the sizes of stores, but the smaller sizes that suffered by pack supply that generated excess and didn't allow to restock in a certain size and now is more up. the same way the same supply model that's precise allows us to have a gain in sorting in all the sizes of stores but the smaller sizes that suffered by pack supply that generated excess and didn't allow to restock in a certain size and now is more up These have the higher benefit. these have the higher benefit We're going to see that in strategic leverage for organic expansion of the company for non-serviced areas. we're going to see that in strategic leverage for organic expansion of the company for non-serviced areas These size, smaller sizes stores are fundamental. these size smaller sizes stores are fundamental Therefore, the supply model is an important enabler for them to be efficient and to support the future plan of the company. therefore the supply model is an important enabler for them to be efficient and to support the future plan of the company Finally, we have a leverage, which is the increase of penetration of digital. finally we have a leverage which is the increase of penetration of digital With omnichannel supply that uses the scale that we have in terms of stores, synergy technology operating integrated both channels, we reduce expressively the cost of the operation of the distribution center and the transportation. with omnichannel supply that uses the scale that we have in terms of stores synergy technology operating integrated both channels we reduce expressively the cost of the operation of the distribution center and the transportation This is very important for a digital that does not dilute results to grow more in a relevant manner. Finally, when we enable its two components, omnichannel and precise SKU supply, not just for Renner, but for all business units, we create a competitive differential for the other units for the other concepts to grow in a relevant manner, in a meaningful manner for the company. I would like to finish here reinforcing that many results have been captured in this supply chain model, but the complete potential of the model has not been reached. We're going to reach the full potential of this model in the next two years. And with this, create competitive differentials, not just for Renner, but for all the business units and the channels that the company has. Fabi, This is very important for a digital that does not dilute results to grow more in a relevant manner. this is very important for a digital that does not dilute results to grow more in a relevant manner Finally, when we enable its two components, omnichannel and precise SKU supply, not just for Renner, but for all business units, we create a competitive differential for the other units for the other concepts to grow in a relevant manner, in a meaningful manner for the company. finally when we enable its two components omnichannel and precise sku supply not just for renner but for all business units we create a competitive differential for the other units for the other concepts to grow in a relevant manner in a meaningful manner for the company I would like to finish here reinforcing that many results have been captured in this supply chain model, but the complete potential of the model has not been reached. i would like to finish here reinforcing that many results have been captured in this supply chain model but the complete potential of the model has not been reached We're going to reach the full potential of this model in the next two years. we're going to reach the full potential of this model in the next two years And with this, create competitive differentials, not just for Renner, but for all the business units and the channels that the company has. and with this create competitive differentials not just for renner but for all the business units and the channels that the company has Fabi, fabi

Speaker 16: Aires, thank you. Guys, let's look. Aires, thank you. aires thank you Guys, let's look. guys let's look

Speaker 9: People, let's look at our third pillar, the client experiences. People, let's look at our third pillar, the client experiences. people let's look at our third pillar the client experiences And I think at this point, it's important to mention that, you know, customers. Let's talk about experiences to talk about customer experience, customer behavior. It's unpredictable today. It's just unpredictable. You know, you're not in that standard journey, you know, like a process. Then you go there and then you pick your clothes and then you take inspiration. It's different. It is just different. It's chaotic. You know, it oscillates. And when we look at it, look at a company, you know, a company like ours, we want to delight our customers. We want to beat expectations. Renner has decided to be an omni-retail, an omnichannel company because we want to ensure, you know, the same standards of experiences regardless of the moment the customer enters the store and regardless of the channel they are using for each moment. You know, we can't predict. And I think at this point, it's important to mention that, you know, customers. and i think at this point it's important to mention that you know customers Let's talk about experiences to talk about customer experience, customer behavior. let's talk about experiences to talk about customer experience customer behavior It's unpredictable today. it's unpredictable today It's just unpredictable. it's just unpredictable You know, you're not in that standard journey, you know, like a process. you know you're not in that standard journey you know like a process Then you go there and then you pick your clothes and then you take inspiration. then you go there and then you pick your clothes and then you take inspiration It's different. it's different It is just different. it is just different It's chaotic. it's chaotic You know, it oscillates. you know it oscillates And when we look at it, look at a company, you know, a company like ours, we want to delight our customers. and when we look at it look at a company you know a company like ours we want to delight our customers We want to beat expectations. we want to beat expectations Renner has decided to be an omni-retail, an omnichannel company because we want to ensure, you know, the same standards of experiences regardless of the moment the customer enters the store and regardless of the channel they are using for each moment. renner has decided to be an omni-retail an omnichannel company because we want to ensure you know the same standards of experiences regardless of the moment the customer enters the store and regardless of the channel they are using for each moment You know, we can't predict. you know we can't predict We're going to have to work, address everything and everything. What is it? Is it about being a company that not only addresses and resolves problems? No, it's not like that anymore. But also to be a company that simply generates, it makes things convenient in the light, creates and generates, let's say, a company that creates and generates a sensation of accomplishment and pleasure in consumption and in fashion specifically. You know, this omni-retail today is very much related to that. And by being an omnichannel company, we know that we receive, realize great value in our customers. I'm going to give you some examples here. You know, we open stores in the countryside and big cities. So, you know, whenever we open stores, we get like a 10-20 acceleration of, in terms of the increase in digital sales. We're going to have to work, address everything and everything. we're going to have to work address everything and everything What is it? what is it Is it about being a company that not only addresses and resolves problems? is it about being a company that not only addresses and resolves problems No, it's not like that anymore. no it's not like that anymore But also to be a company that simply generates, it makes things convenient in the light, creates and generates, let's say, a company that creates and generates a sensation of accomplishment and pleasure in consumption and in fashion specifically. but also to be a company that simply generates it makes things convenient in the light creates and generates let's say a company that creates and generates a sensation of accomplishment and pleasure in consumption and in fashion specifically You know, this omni-retail today is very much related to that. you know this omni-retail today is very much related to that And by being an omnichannel company, we know that we receive, realize great value in our customers. and by being an omnichannel company we know that we receive realize great value in our customers I'm going to give you some examples here. i'm going to give you some examples here You know, we open stores in the countryside and big cities. you know we open stores in the countryside and big cities So, you know, whenever we open stores, we get like a 10-20 acceleration of, in terms of the increase in digital sales. so you know whenever we open stores we get like a 10-20 acceleration of in terms of the increase in digital sales When customers purchase stuff digitally, 35% of that, they prefer to pick up in store because it's convenient, and 15% of that, they carry out an additional purchase, and 70% of the people who want to exchange their products, normal, it's only natural. They try something out. They want to use a different color or the size. Out of those individuals, 70% of the exchanges, you know, when they request digitally, they want to go to the store in person, and then 20% of them buy additional items. Our omnichannel base, you know, for clients who are in several channels, we grew over 11%. This customer spends three times more than a single channel customer. If they are a Realize, you know, customer, they'll spend six times more, and so here in Brazil, this is a reality. When customers purchase stuff digitally, 35% of that, they prefer to pick up in store because it's convenient, and 15% of that, they carry out an additional purchase, and 70% of the people who want to exchange their products, normal, it's only natural. when customers purchase stuff digitally 35% of that they prefer to pick up in store because it's convenient and 15% of that they carry out an additional purchase and 70% of the people who want to exchange their products normal it's only natural They try something out. they try something out They want to use a different color or the size. they want to use a different color or the size Out of those individuals, 70% of the exchanges, you know, when they request digitally, they want to go to the store in person, and then 20% of them buy additional items. out of those individuals 70% of the exchanges you know when they request digitally they want to go to the store in person and then 20% of them buy additional items Our omnichannel base, you know, for clients who are in several channels, we grew over 11%. our omnichannel base you know for clients who are in several channels we grew over 11% This customer spends three times more than a single channel customer. this customer spends three times more than a single channel customer If they are a Realize , you know, customer, they'll spend six times more, and so here in Brazil, this is a reality. if they are a realize you know customer they'll spend six times more and so here in brazil this is a reality You know, it's really, really important. Of course, here we got a snapshot of this in our company, but for us, this is part of the process. You know, it's really, really important. you know it's really really important Of course, here we got a snapshot of this in our company, but for us, this is part of the process. of course here we got a snapshot of this in our company but for us this is part of the process You know, this omnichannel retail, our digital sales reached over BRL 2.4 billion, guys, 15% of our company. We also have over seven million clients, customers who are monthly, who are active each month, and for the sixth time, we are the best e-commerce company in fashion. Something very, very important here too. We have accelerated, you know, digital sales have maximized the company. It has contributed a lot. I haven't mentioned it earlier, but in more than contributed, it has become, it has materialized into revenues. You see, see those images there, those figures, and if we look at the market, you know, we have 15%. You know, this omnichannel retail, our digital sales reached over BRL 2.4 billion, guys, 15% of our company. you know this omnichannel retail our digital sales reached over brl 2.4 billion guys 15% of our company We also have over seven million clients, customers who are monthly, who are active each month, and for the sixth time, we are the best e-commerce company in fashion. we also have over seven million clients customers who are monthly who are active each month and for the sixth time we are the best e-commerce company in fashion Something very, very important here too. something very very important here too We have accelerated, you know, digital sales have maximized the company. we have accelerated you know digital sales have maximized the company It has contributed a lot. it has contributed a lot I haven't mentioned it earlier, but in more than contributed, it has become, it has materialized into revenues. i haven't mentioned it earlier but in more than contributed it has become it has materialized into revenues You see, see those images there, those figures, and if we look at the market, you know, we have 15%. you see see those images there those figures and if we look at the market you know we have 15% But when we look at Brazil as a whole, you know, the local omni players, we are way ahead of them, almost three times ahead. Go from five or seven, go to 15. But if we look at the opportunities in Brazil, in terms of fashion, we can get the digital sales can get in, you know, we have the pure digital players. We have room, there is room for us. And there's a lot more room when we look at the outside of Brazil. There are more mature countries than Brazil. This is accelerating, but has reached numbers, very high numbers. But I think the most important point here for us is our digital sales. It's not sales anymore or not about sales anymore. It's the largest, window shop, largest window for a company. But when we look at Brazil as a whole, you know, the local omni players, we are way ahead of them, almost three times ahead. but when we look at brazil as a whole you know the local omni players we are way ahead of them almost three times ahead Go from five or seven, go to 15. go from five or seven go to 15 But if we look at the opportunities in Brazil, in terms of fashion, we can get the digital sales can get in, you know, we have the pure digital players. but if we look at the opportunities in brazil in terms of fashion we can get the digital sales can get in you know we have the pure digital players We have room, there is room for us. we have room there is room for us And there's a lot more room when we look at the outside of Brazil. and there's a lot more room when we look at the outside of brazil There are more mature countries than Brazil. there are more mature countries than brazil This is accelerating, but has reached numbers, very high numbers. this is accelerating but has reached numbers very high numbers But I think the most important point here for us is our digital sales. but i think the most important point here for us is our digital sales It's not sales anymore or not about sales anymore. it's not sales anymore or not about sales anymore It's the largest, window shop, largest window for a company. it's the largest window shop largest window for a company We give inspiration, you know, we have a new trend almost every day. Today, we work with digital platforms that influences what goes to the runways and also in the store, in physical stores, you know, visual merchandising. You know, this is fully connected to it and most importantly, even more important is, when we look at it, it drives technology a lot, so of course, we talk a lot about artificial intelligence and stuff, but I'm going to give you an example. We have images and pictures of babies here, baby models. Of course, we have images with of babies, of course, but most of them were like still images. Like when we can using AI to humanize this model, you know, it drove over 60% in terms of visits, walk-ins and conversion, especially in babies' products, so it maximizes a lot. We give inspiration, you know, we have a new trend almost every day. we give inspiration you know we have a new trend almost every day Today, we work with digital platforms that influences what goes to the runways and also in the store, in physical stores, you know, visual merchandising. today we work with digital platforms that influences what goes to the runways and also in the store in physical stores you know visual merchandising You know, this is fully connected to it and most importantly, even more important is, when we look at it, it drives technology a lot, so of course, we talk a lot about artificial intelligence and stuff, but I'm going to give you an example. you know this is fully connected to it and most importantly even more important is when we look at it it drives technology a lot so of course we talk a lot about artificial intelligence and stuff but i'm going to give you an example We have images and pictures of babies here, baby models. we have images and pictures of babies here baby models Of course, we have images with of babies, of course, but most of them were like still images. of course we have images with of babies of course but most of them were like still images Like when we can using AI to humanize this model, you know, it drove over 60% in terms of visits, walk-ins and conversion, especially in babies' products, so it maximizes a lot. like when we can using ai to humanize this model you know it drove over 60% in terms of visits walk-ins and conversion especially in babies' products so it maximizes a lot When we talk, you know, we had a recommendation engine. It's always evolving. This is a tool, an important tool. It's basic, but the most important thing here is to know how to use it and how much it is evolving into assertiveness. And we have also had, I mean, last year, we have over 135% of revenue growth driven by recommendations. And so, of course, we have like a virtual assistant, but we are getting ready for the most important point that is coming, which is agent commerce. So we're going to start to experience a reality in which we are not going to provide assistance to the end customer, but provide assistance to this customer's agent. And this is a reality now. And if you look at Renner, we are the number one in terms of ChatGPT searches. When we talk, you know, we had a recommendation engine. when we talk you know we had a recommendation engine It's always evolving. it's always evolving This is a tool, an important tool. this is a tool an important tool It's basic, but the most important thing here is to know how to use it and how much it is evolving into assertiveness. it's basic but the most important thing here is to know how to use it and how much it is evolving into assertiveness And we have also had, I mean, last year, we have over 135% of revenue growth driven by recommendations. and we have also had i mean last year we have over 135% of revenue growth driven by recommendations And so, of course, we have like a virtual assistant, but we are getting ready for the most important point that is coming, which is agent commerce. and so of course we have like a virtual assistant but we are getting ready for the most important point that is coming which is agent commerce So we're going to start to experience a reality in which we are not going to provide assistance to the end customer, but provide assistance to this customer's agent. so we're going to start to experience a reality in which we are not going to provide assistance to the end customer but provide assistance to this customer's agent And this is a reality now. and this is a reality now And if you look at Renner, we are the number one in terms of ChatGPT searches. and if you look at renner we are the number one in terms of chatgpt searches

Speaker 16: Good. Good. good Now I'm going to invite, let's talk about, continue talking about experience. And now we have Paula from Realize. How is Realize going to maximize all that? Now I'm going to invite, let's talk about, continue talking about experience. now i'm going to invite let's talk about continue talking about experience And now we have Paula from Realize. and now we have paula from realize How is Realize going to maximize all that? how is realize going to maximize all that

Speaker 2: Good morning, everyone. It's a great pleasure to be here with you. You know, I see some familiar faces. I've had a chance to talk to some of you. It's really nice to open our doors for you. So we saw that Realize was in very important moments of the presentation thus far. When Fabio mentioned the lighting experiences and Realize as a boost in our ecosystem, when Renata mentioned the idea, the importance of faithful and loyal customers for us to, you know, connect with them better. And as Fabiana has just said, you know, she talked about the importance of Realize in the omnichannel strategy. Good morning, everyone. good morning everyone It's a great pleasure to be here with you. it's a great pleasure to be here with you You know, I see some familiar faces. you know i see some familiar faces I've had a chance to talk to some of you. i've had a chance to talk to some of you It's really nice to open our doors for you. it's really nice to open our doors for you So we saw that Realize was in very important moments of the presentation thus far. so we saw that realize was in very important moments of the presentation thus far When Fabio mentioned the lighting experiences and Realize as a boost in our ecosystem, when Renata mentioned the idea, the importance of faithful and loyal customers for us to, you know, connect with them better. when fabio mentioned the lighting experiences and realize as a boost in our ecosystem when renata mentioned the idea the importance of faithful and loyal customers for us to you know connect with them better And as Fabiana has just said, you know, she talked about the importance of Realize in the omnichannel strategy. and as fabiana has just said you know she talked about the importance of realize in the omnichannel strategy But before we dive deep into it, it's important to recap on, you know, what we had in 2023 to the Realize today after three years. In 2023, we had a funding company with a hybrid strategy, you know, whose goal was to support the sales of our ecosystem, but also explore opportunities in banking and banking industries. And from then, we understood that was a moment to revisit that strategy because our vocation, of course, is to have our financial aspects totally geared toward the ecosystem. Why is that? You know, we know that we are in an environment with 20 million customers traveling around the stores. And that's precisely for this type of public audience that we want to have the best financial aspects in Brazil. And how we're going to do that? But before we dive deep into it, it's important to recap on, you know, what we had in 2023 to the Realize today after three years. but before we dive deep into it it's important to recap on you know what we had in 2023 to the realize today after three years In 2023, we had a funding company with a hybrid strategy, you know, whose goal was to support the sales of our ecosystem, but also explore opportunities in banking and banking industries. in 2023 we had a funding company with a hybrid strategy you know whose goal was to support the sales of our ecosystem but also explore opportunities in banking and banking industries And from then, we understood that was a moment to revisit that strategy because our vocation, of course, is to have our financial aspects totally geared toward the ecosystem. and from then we understood that was a moment to revisit that strategy because our vocation of course is to have our financial aspects totally geared toward the ecosystem Why is that? why is that You know, we know that we are in an environment with 20 million customers traveling around the stores. you know we know that we are in an environment with 20 million customers traveling around the stores And that's precisely for this type of public audience that we want to have the best financial aspects in Brazil. and that's precisely for this type of public audience that we want to have the best financial aspects in brazil And how we're going to do that? and how we're going to do that We're going to explore this, how we're getting ready for it to support this movement, this growth for the coming five or ten years. So let's start with talking a little bit about loyalty. You know, really, Realize clients today, you know, they come to the stores physically 50% more in relation to other customers who purchase any financial product. You know, they visit us more frequently. And whenever they go to our store, they spend 150% more in terms of, you know, annual spending. So this is proof that, you know, how much the financial product is actually a powerful boost for spending for expenses in our ecosystem. It's important to remember too that 55% of our clients, of the loyal and ultra loyal customers of Renner today, they have our cards. They all have our cards. We're going to explore this, how we're getting ready for it to support this movement, this growth for the coming five or ten years. we're going to explore this how we're getting ready for it to support this movement this growth for the coming five or ten years So let's start with talking a little bit about loyalty. so let's start with talking a little bit about loyalty You know, really, Realize clients today, you know, they come to the stores physically 50% more in relation to other customers who purchase any financial product. you know really realize clients today you know they come to the stores physically 50% more in relation to other customers who purchase any financial product You know, they visit us more frequently. you know they visit us more frequently And whenever they go to our store, they spend 150% more in terms of, you know, annual spending. and whenever they go to our store they spend 150% more in terms of you know annual spending So this is proof that, you know, how much the financial product is actually a powerful boost for spending for expenses in our ecosystem. so this is proof that you know how much the financial product is actually a powerful boost for spending for expenses in our ecosystem It's important to remember too that 55% of our clients, of the loyal and ultra loyal customers of Renner today, they have our cards. it's important to remember too that 55% of our clients of the loyal and ultra loyal customers of renner today they have our cards They all have our cards. they all have our cards This proves that, you know, how financial services can boost and propel sales and loyalty in our ecosystem. When we go to the omnichannel strategy that Fabiana mentioned, it will become more and more relevant in Lojas Renner, yeah, and at BU Renner, right? Today, we have the Realize app. It's embedded into the Renner app. If you use the Renner app, you'll see something like a tab card. And this leads to a high quality flow. There's over 15 million accesses, you know, in the Renner app. And every time they go there to check out the balance, see the limit, you see they have an opportunity to connect with our products and offers. And this can convert into a sale. This proves that, you know, how financial services can boost and propel sales and loyalty in our ecosystem. this proves that you know how financial services can boost and propel sales and loyalty in our ecosystem When we go to the omnichannel strategy that Fabiana mentioned, it will become more and more relevant in Lojas Renner, yeah, and at BU Renner, right? when we go to the omnichannel strategy that fabiana mentioned it will become more and more relevant in lojas renner yeah and at bu renner right Today, we have the Realize app. today we have the realize app It's embedded into the Renner app. it's embedded into the renner app If you use the Renner app, you'll see something like a tab card. if you use the renner app you'll see something like a tab card And this leads to a high quality flow. and this leads to a high quality flow There's over 15 million accesses, you know, in the Renner app. there's over 15 million accesses you know in the renner app And every time they go there to check out the balance, see the limit, you see they have an opportunity to connect with our products and offers. and every time they go there to check out the balance see the limit you see they have an opportunity to connect with our products and offers And this can convert into a sale. and this can convert into a sale But also our customers, those who have the cards, they are much more engaged than the others, three times more, you know, in relation to those who pay in different ways. And today, e-commerce sales comparatively to the customers who use other payment methods is 93 times higher. This means that Realize omni is like a perfect match. And we want to boost that even more. We want to make it even stronger as a financial strategy. And when we talk about data, you know, Realize brings data, data that retail itself wouldn't be able to achieve if there is, there isn't a financial company embedded. We have over 4.8 active customers and 99% of high reachability. What does reachability mean? That means that customers, Realize customers, they really interact with the messages we sent them, either push notification, WhatsApp, email. But also our customers, those who have the cards, they are much more engaged than the others, three times more, you know, in relation to those who pay in different ways. but also our customers those who have the cards they are much more engaged than the others three times more you know in relation to those who pay in different ways And today, e-commerce sales comparatively to the customers who use other payment methods is 93 times higher. and today e-commerce sales comparatively to the customers who use other payment methods is 93 times higher This means that Realize omni is like a perfect match. this means that realize omni is like a perfect match And we want to boost that even more. and we want to boost that even more We want to make it even stronger as a financial strategy. we want to make it even stronger as a financial strategy And when we talk about data, you know, Realize brings data, data that retail itself wouldn't be able to achieve if there is, there isn't a financial company embedded. and when we talk about data you know realize brings data data that retail itself wouldn't be able to achieve if there is there isn't a financial company embedded We have over 4.8 active customers and 99% of high reachability. we have over 4.8 active customers and 99% of high reachability What does reachability mean? what does reachability mean That means that customers, Realize customers, they really interact with the messages we sent them, either push notification, WhatsApp, email. that means that customers realize customers they really interact with the messages we sent them either push notification whatsapp email This is a very high reachability, way above the market. This makes us, you know, it makes it look like a Realize Ads, as we can offer our customers the offers, new collections, and they actually interact with them. Also, as you said, you know, today we have two products, two different cards, so for the cards with like Visa or Mastercard, they can also spend outside of Renner, so their expenses, they're spending outside of Renner. It's really important because we know how much they spend in fashion. These are very valuable insights for us so that we can move on with our credit model, but also to translate that into commercial insights for Renner in view of the law, of course. Another important point is the expansion of physical stores. This is a very interesting piece of information. This is a very high reachability, way above the market. this is a very high reachability way above the market This makes us, you know, it makes it look like a Realize Ads, as we can offer our customers the offers, new collections, and they actually interact with them. this makes us you know it makes it look like a realize ads as we can offer our customers the offers new collections and they actually interact with them Also, as you said, you know, today we have two products, two different cards, so for the cards with like Visa or Mastercard, they can also spend outside of Renner, so their expenses, they're spending outside of Renner. also as you said you know today we have two products two different cards so for the cards with like visa or mastercard they can also spend outside of renner so their expenses they're spending outside of renner It's really important because we know how much they spend in fashion. it's really important because we know how much they spend in fashion These are very valuable insights for us so that we can move on with our credit model, but also to translate that into commercial insights for Renner in view of the law, of course. these are very valuable insights for us so that we can move on with our credit model but also to translate that into commercial insights for renner in view of the law of course Another important point is the expansion of physical stores. another important point is the expansion of physical stores This is a very interesting piece of information. this is a very interesting piece of information When you look at the participation of Renner cards, you look at the consolidated per share, but in medium-sized cities, you know, the penetration is five points, 5% higher than in larger cities. Because in those cities, the population doesn't necessarily have like bank accounts, and this increases the purchasing power. When we talk about Realize in terms of expanding stores to smaller cities, this is a relevant boost, a very strategic, especially because our credit policies, you know, they're not only, they're not single for Brazil. We have evolved in terms of our models, and today we have credit models per region in some states of Brazil too, because our behavior of clients up north, they will behave different from the clients here in the south, cost of living, per capital income, employability in the state. When you look at the participation of Renner cards, you look at the consolidated per share, but in medium-sized cities, you know, the penetration is five points, 5% higher than in larger cities. when you look at the participation of renner cards you look at the consolidated per share but in medium-sized cities you know the penetration is five points 5% higher than in larger cities Because in those cities, the population doesn't necessarily have like bank accounts, and this increases the purchasing power. because in those cities the population doesn't necessarily have like bank accounts and this increases the purchasing power When we talk about Realize in terms of expanding stores to smaller cities, this is a relevant boost, a very strategic, especially because our credit policies, you know, they're not only, they're not single for Brazil. when we talk about realize in terms of expanding stores to smaller cities this is a relevant boost a very strategic especially because our credit policies you know they're not only they're not single for brazil We have evolved in terms of our models, and today we have credit models per region in some states of Brazil too, because our behavior of clients up north, they will behave different from the clients here in the south, cost of living, per capital income, employability in the state. we have evolved in terms of our models and today we have credit models per region in some states of brazil too because our behavior of clients up north they will behave different from the clients here in the south cost of living per capital income employability in the state This allows us to take a different action and be more assertive in terms of credit granting. Lastly, we also have a novelty here for 2026, and you're going to see it firsthand. We're going to release a new card in the second semester of next year. This new card is sustained by a complete revision of our strategy and model because it will have, it will be embedded into the Renner app, but also like in other digital cards like Apple Pay. There'll be an annual policy, annuity policy, you know, which is different from other clients. You know, it's going to be easy. You know, they'll be able to purchase using Face ID only. You know, they'll have a card, but when they get there, they'll not need the card. They'll just show their face, you know, using Face ID and exclusive rewards. This allows us to take a different action and be more assertive in terms of credit granting. this allows us to take a different action and be more assertive in terms of credit granting Lastly, we also have a novelty here for 2026, and you're going to see it firsthand. lastly we also have a novelty here for 2026 and you're going to see it firsthand We're going to release a new card in the second semester of next year. we're going to release a new card in the second semester of next year This new card is sustained by a complete revision of our strategy and model because it will have, it will be embedded into the Renner app, but also like in other digital cards like Apple Pay. this new card is sustained by a complete revision of our strategy and model because it will have it will be embedded into the renner app but also like in other digital cards like apple pay There'll be an annual policy, annuity policy, you know, which is different from other clients. there'll be an annual policy annuity policy you know which is different from other clients You know, it's going to be easy. you know it's going to be easy You know, they'll be able to purchase using Face ID only. you know they'll be able to purchase using face id only You know, they'll have a card, but when they get there, they'll not need the card. you know they'll have a card but when they get there they'll not need the card They'll just show their face, you know, using Face ID and exclusive rewards. they'll just show their face you know using face id and exclusive rewards You know, they'll become completely embedded. You know, we're talking about rewards that will be in our ecosystem and how do we do that from the structural perspective? Let's talk about pipes and connection of a financial company. I know most of you are bankers and you know that very, very well. First point here is quite innovative. This new card is a unique card. It's 100% like comes with like a Visa or Mastercard, et cetera but there are two credit limits which are independent. One for them is for client customers to use in the ecosystem and another limit for them to use outside of it. It's innovative because no retail financial company does that in Brazil. You know, they'll become completely embedded. you know they'll become completely embedded You know, we're talking about rewards that will be in our ecosystem and how do we do that from the structural perspective? you know we're talking about rewards that will be in our ecosystem and how do we do that from the structural perspective Let's talk about pipes and connection of a financial company. let's talk about pipes and connection of a financial company I know most of you are bankers and you know that very, very well. i know most of you are bankers and you know that very very well First point here is quite innovative. first point here is quite innovative This new card is a unique card. this new card is a unique card It's 100% like comes with like a Visa or Mastercard, et cetera but there are two credit limits which are independent. it's 100% like comes with like a visa or mastercard et cetera but there are two credit limits which are independent One for them is for client customers to use in the ecosystem and another limit for them to use outside of it. one for them is for client customers to use in the ecosystem and another limit for them to use outside of it It's innovative because no retail financial company does that in Brazil. it's innovative because no retail financial company does that in brazil We're going to be able to calibrate things, you know, our exposure to risk to each profile client, but also we're going to be able to adapt the credit concession to the consumption profile of those customers, you know, our appetite, credit appetite and our policy. It will be oriented to expanding in the ecosystem. You know, we're going to prioritize that. You know, we're going to have like more limit, of course, but obviously if you want to improve our proposal of value for our most loyal customers and for those that, you know, make sense, we're going to be expanding credit to them because we believe it's important. As I said earlier, this brings information that feeds our credit system and brings important insights for Renner, and we have like evolved a lot in terms of governance. We're going to be able to calibrate things, you know, our exposure to risk to each profile client, but also we're going to be able to adapt the credit concession to the consumption profile of those customers, you know, our appetite, credit appetite and our policy. we're going to be able to calibrate things you know our exposure to risk to each profile client but also we're going to be able to adapt the credit concession to the consumption profile of those customers you know our appetite credit appetite and our policy It will be oriented to expanding in the ecosystem. it will be oriented to expanding in the ecosystem You know, we're going to prioritize that. you know we're going to prioritize that You know, we're going to have like more limit, of course, but obviously if you want to improve our proposal of value for our most loyal customers and for those that, you know, make sense, we're going to be expanding credit to them because we believe it's important. you know we're going to have like more limit of course but obviously if you want to improve our proposal of value for our most loyal customers and for those that you know make sense we're going to be expanding credit to them because we believe it's important As I said earlier, this brings information that feeds our credit system and brings important insights for Renner, and we have like evolved a lot in terms of governance. as i said earlier this brings information that feeds our credit system and brings important insights for renner and we have like evolved a lot in terms of governance And I can assure you that today we have our governance is compatible with the, with that of major banks. And this makes you guys feel really, really safe as we can support our movement of growth. Lastly, I think it's really, really important to talk about the SG&A perspective. You know, more and more we're going to look for automation and AI more and more because we understand that this is an opportunity that we have to drive operational efficiency in the company. And obviously, obviously it will reduce costs. These changes, you know, that we're doing this, these replacements, you know, it takes a while. This transition will take a little while and our costs will be duplicated in this moment. So from 2027, you'll see that this will bring us more efficiency in terms of G&A. And I can assure you that today we have our governance is compatible with the, with that of major banks. and i can assure you that today we have our governance is compatible with the with that of major banks And this makes you guys feel really, really safe as we can support our movement of growth. and this makes you guys feel really really safe as we can support our movement of growth Lastly, I think it's really, really important to talk about the SG&A perspective. lastly i think it's really really important to talk about the sg&a perspective You know, more and more we're going to look for automation and AI more and more because we understand that this is an opportunity that we have to drive operational efficiency in the company. you know more and more we're going to look for automation and ai more and more because we understand that this is an opportunity that we have to drive operational efficiency in the company And obviously, obviously it will reduce costs. and obviously obviously it will reduce costs These changes, you know, that we're doing this, these replacements, you know, it takes a while. these changes you know that we're doing this these replacements you know it takes a while This transition will take a little while and our costs will be duplicated in this moment. this transition will take a little while and our costs will be duplicated in this moment So from 2027, you'll see that this will bring us more efficiency in terms of G&A. so from 2027 you'll see that this will bring us more efficiency in terms of g&a When we talk about the technological platforms, we're talking about preparing this company to have to be more scalable and have better performance. Lastly, our segmentation model, you know, it's innovative. You know, I come from the banking industry and we use banking information, bureau information, credit behavior, the model they offer and how do we grant credit. Here, our model is more advanced. You know, we have the traditional model that banks use. We also have begun using a different perspective, the client customer's behavior into retail. We know the parts they purchase, how frequent they purchase things. This is important for decision making. We're going to continue to be focused. We're going to continue focusing, you know, we have evolved a lot, but we're going to focus on low risk customers. It's really, really important to leave a message here with you. When we talk about the technological platforms, we're talking about preparing this company to have to be more scalable and have better performance. when we talk about the technological platforms we're talking about preparing this company to have to be more scalable and have better performance Lastly, our segmentation model, you know, it's innovative. lastly our segmentation model you know it's innovative You know, I come from the banking industry and we use banking information, bureau information, credit behavior, the model they offer and how do we grant credit. you know i come from the banking industry and we use banking information bureau information credit behavior the model they offer and how do we grant credit Here, our model is more advanced. here our model is more advanced You know, we have the traditional model that banks use. you know we have the traditional model that banks use We also have begun using a different perspective, the client customer's behavior into retail. we also have begun using a different perspective the client customer's behavior into retail We know the parts they purchase, how frequent they purchase things. we know the parts they purchase how frequent they purchase things This is important for decision making. this is important for decision making We're going to continue to be focused. we're going to continue to be focused We're going to continue focusing, you know, we have evolved a lot, but we're going to focus on low risk customers. we're going to continue focusing you know we have evolved a lot but we're going to focus on low risk customers It's really, really important to leave a message here with you. it's really really important to leave a message here with you The financial company is fully prepared for to support this growth for the coming five or 10 years. And speaking of growth, Gustavo Yuasa will be here with you, our strategy director. The financial company is fully prepared for to support this growth for the coming five or 10 years. the financial company is fully prepared for to support this growth for the coming five or 10 years And speaking of growth, Gustavo Yuasa will be here with you, our strategy director. and speaking of growth gustavo yuasa will be here with you our strategy director

Speaker 1: Thank you, Paula. Well, we're going to talk about omnichannel. You know, we have excellence in digital sales. Our physical stores are and will be very, very important for Renner for the ecosystem. And we believe that, you know, the digital and the physical should go together. So we are always evolving. Every year there's something new. And since 2021, we have the Hemias model. That flows better. The use of technology, for example, to cash is a global reference. Many have approved. And the highlight to the product to fashion connecting with what Fabi said, but physically, for physical experience in our stores, the brick and mortar store is a competitive advantage. Thank you, Paula. thank you paula Well, we're going to talk about omnichannel. well we're going to talk about omnichannel You know, we have excellence in digital sales. you know we have excellence in digital sales Our physical stores are and will be very, very important for Renner for the ecosystem. our physical stores are and will be very very important for renner for the ecosystem And we believe that, you know, the digital and the physical should go together. and we believe that you know the digital and the physical should go together So we are always evolving. so we are always evolving Every year there's something new. every year there's something new And since 2021, we have the Hemias model. and since 2021 we have the hemias model That flows better. that flows better The use of technology, for example, to cash is a global reference. the use of technology for example to cash is a global reference Many have approved. many have approved And the highlight to the product to fashion connecting with what Fabi said, but physically, for physical experience in our stores, the brick and mortar store is a competitive advantage. and the highlight to the product to fashion connecting with what fabi said but physically for physical experience in our stores the brick and mortar store is a competitive advantage Inside the Renner, why do we have two models? RA Plus, Essential that has all the attributes of RA MICE, ReMICE with the choice of materials that's prepared for an expansion on the choice of finishing, wood, lighting that allows us better results, to have better results. We already have to separate the municipalities between 100,000 to 200,000 inhabitants. We have 90 stores that perform above average stores that we were already able with time to have a model that brings a ROIC that's positive, higher than average from compared to other stores. The essential model does even better. 15 stores in Brazil up to now that have this journey of ReMICE that brings CapEx with better, even better results so the 15 stores, a few examples we have in Icó, Passos, Caldas Novas, cities with a high potential of purchasing and we're doing this expansion in Brazil. Inside the Renner, why do we have two models? inside the renner why do we have two models RA Plus, Essential that has all the attributes of RA MICE, ReMICE with the choice of materials that's prepared for an expansion on the choice of finishing, wood, lighting that allows us better results, to have better results. ra plus essential that has all the attributes of ra mice remice with the choice of materials that's prepared for an expansion on the choice of finishing wood lighting that allows us better results to have better results We already have to separate the municipalities between 100,000 to 200,000 inhabitants. we already have to separate the municipalities between 100,000 to 200,000 inhabitants We have 90 stores that perform above average stores that we were already able with time to have a model that brings a ROIC that's positive, higher than average from compared to other stores. we have 90 stores that perform above average stores that we were already able with time to have a model that brings a roic that's positive higher than average from compared to other stores The essential model does even better. 15 stores in Brazil up to now that have this journey of ReMICE that brings CapEx with better, even better results so the 15 stores, a few examples we have in Icó, Passos, Caldas Novas, cities with a high potential of purchasing and we're doing this expansion in Brazil. the essential model does even better 15 stores in brazil up to now that have this journey of remice that brings capex with better even better results so the 15 stores a few examples we have in icó passos caldas novas cities with a high potential of purchasing and we're doing this expansion in brazil Renner concept brings the essential Renner with another experience, a sophisticated store that's evolving little by little. It's going to be the store that brings not only the experience of Renner, but a building of image, positioning, brand, fashion. A few examples like there's a lounge when in the improving proof and social media stores that are more sophisticated, maybe not over Brazil, but we already have 70 of these. Every year we enhance the model since the first store until the latest. We evolve and we continue to evolve. It's very dynamic. We have Morumbi, Shopping Morumbi, Shopping Ibirapuera in Brazil and Shopping Dom Pedro. The most advanced store, more complete stores that we have in this model, this concept model. Renner Essential brings returns above average here. We're refurbishing store, the existing store where we apply this remodeling. We invest in the store. Renner concept brings the essential Renner with another experience, a sophisticated store that's evolving little by little. renner concept brings the essential renner with another experience a sophisticated store that's evolving little by little It's going to be the store that brings not only the experience of Renner, but a building of image, positioning, brand, fashion. it's going to be the store that brings not only the experience of renner but a building of image positioning brand fashion A few examples like there's a lounge when in the improving proof and social media stores that are more sophisticated, maybe not over Brazil, but we already have 70 of these. a few examples like there's a lounge when in the improving proof and social media stores that are more sophisticated maybe not over brazil but we already have 70 of these Every year we enhance the model since the first store until the latest. every year we enhance the model since the first store until the latest We evolve and we continue to evolve. we evolve and we continue to evolve It's very dynamic. it's very dynamic We have Morumbi, Shopping Morumbi, Shopping Ibirapuera in Brazil and Shopping Dom Pedro. we have morumbi shopping morumbi shopping ibirapuera in brazil and shopping dom pedro The most advanced store, more complete stores that we have in this model, this concept model. the most advanced store more complete stores that we have in this model this concept model Renner Essential brings returns above average here. renner essential brings returns above average here We're refurbishing store, the existing store where we apply this remodeling. we're refurbishing store the existing store where we apply this remodeling We invest in the store. we invest in the store It brings sales, brings ROIC 5%-10% incremental sales every store that we refurbish. To see this model better than these two images. I'm going to play a video for you. Invite you all to visit our stores that are online also. The Americana store and the Morumbi store are two examples of what I showed you here in the back. Americana store is essential. It's the same model that we're going to use to expand in the next five years. We want to open between 140-170 stores, only Renner stores, only in Brazil. It's a part of the acceleration of the expansion. When we do so, we're going to reach, we're going to fill 100% of the cities above 200,000 inhabitants. So we're going to be present in the biggest cities of Brazil, starting from 90-100. We're going to fill this space. It brings sales, brings ROIC 5%-10% incremental sales every store that we refurbish. it brings sales brings roic 5%-10% incremental sales every store that we refurbish To see this model better than these two images. to see this model better than these two images I'm going to play a video for you. i'm going to play a video for you Invite you all to visit our stores that are online also. invite you all to visit our stores that are online also The Americana store and the Morumbi store are two examples of what I showed you here in the back. the americana store and the morumbi store are two examples of what i showed you here in the back Americana store is essential. americana store is essential It's the same model that we're going to use to expand in the next five years. it's the same model that we're going to use to expand in the next five years We want to open between 140-170 stores, only Renner stores, only in Brazil. we want to open between 140-170 stores only renner stores only in brazil It's a part of the acceleration of the expansion. it's a part of the acceleration of the expansion When we do so, we're going to reach, we're going to fill 100% of the cities above 200,000 inhabitants. when we do so we're going to reach we're going to fill 100% of the cities above 200,000 inhabitants So we're going to be present in the biggest cities of Brazil, starting from 90-100. so we're going to be present in the biggest cities of brazil starting from 90-100 We're going to fill this space. we're going to fill this space And the focus of the expansion will be between 100 and 200,000 inhabitants, considering micro regions where we are already present. As I said before, we have 90 stores in these municipalities, and we will reach 70% coverage in these municipalities, bringing a qualified demand, additional qualified demand of BRL 20 billion reais. This is the market of a profile, a social class that we understand that is addressable, that is very similar to what we have today. It gives us the trust that it is an addressable market, reachable, possible that will bring a lot of results to the company. So much so that the 15 stores that we created, the essential model are bringing the results. We monitor this in a very disciplined way because, as we saw today, these are new municipalities. We do not have a comparison to other existing stores. We potentialize the digital store, the omnichannel. And the focus of the expansion will be between 100 and 200,000 inhabitants, considering micro regions where we are already present. and the focus of the expansion will be between 100 and 200,000 inhabitants considering micro regions where we are already present As I said before, we have 90 stores in these municipalities, and we will reach 70% coverage in these municipalities, bringing a qualified demand, additional qualified demand of BRL 20 billion reais. as i said before we have 90 stores in these municipalities and we will reach 70% coverage in these municipalities bringing a qualified demand additional qualified demand of brl 20 billion reais This is the market of a profile, a social class that we understand that is addressable, that is very similar to what we have today. this is the market of a profile a social class that we understand that is addressable that is very similar to what we have today It gives us the trust that it is an addressable market, reachable, possible that will bring a lot of results to the company. it gives us the trust that it is an addressable market reachable possible that will bring a lot of results to the company So much so that the 15 stores that we created, the essential model are bringing the results. so much so that the 15 stores that we created the essential model are bringing the results We monitor this in a very disciplined way because, as we saw today, these are new municipalities. we monitor this in a very disciplined way because as we saw today these are new municipalities We do not have a comparison to other existing stores. we do not have a comparison to other existing stores We potentialize the digital store, the omnichannel. we potentialize the digital store the omnichannel Paula talked about Realize cities where the card is even more relevant. The supply model per SKU for this property is even more important. The precision of sorting in each city that we enter is even more relevant. Everything that I explained for this model is a difference. It's a differential. The expansion is a pillar, strategic pillar. As I said, physical brick and mortar store is important for the composition of the omni strategy. We're very, it's the highest capillarity brand. It gives us steps ahead of the competition. It differentiates us from the domestic players and the native digital players. Fabi, Paula talked about Realize cities where the card is even more relevant. paula talked about realize cities where the card is even more relevant The supply model per SKU for this property is even more important. the supply model per sku for this property is even more important The precision of sorting in each city that we enter is even more relevant. the precision of sorting in each city that we enter is even more relevant Everything that I explained for this model is a difference. everything that i explained for this model is a difference It's a differential. it's a differential The expansion is a pillar, strategic pillar. the expansion is a pillar strategic pillar As I said, physical brick and mortar store is important for the composition of the omni strategy. as i said physical brick and mortar store is important for the composition of the omni strategy We're very, it's the highest capillarity brand. we're very it's the highest capillarity brand It gives us steps ahead of the competition. it gives us steps ahead of the competition It differentiates us from the domestic players and the native digital players. it differentiates us from the domestic players and the native digital players Fabi, fabi

Speaker 16: The floor is yours. Thank you. Yours, thank you, Gustavo. And here we finish. But before we finish, let's talk a bit about results. We said many things. It gave you some numbers, but let's do a wrap-up so we can understand a bit. The floor is yours. the floor is yours Thank you. thank you Yours, thank you, Gustavo. yours thank you gustavo And here we finish. and here we finish But before we finish, let's talk a bit about results. but before we finish let's talk a bit about results We said many things. we said many things It gave you some numbers, but let's do a wrap-up so we can understand a bit. it gave you some numbers but let's do a wrap-up so we can understand a bit Fabio mentioned, and this is very important, that we already have collected the results since 2024, the results of the investments we made. So we can clear this looking at the nine months, taken as a base to nine months base, customer base. I'm going to use 12 here. We use the active base. Active base last 12 months. We grew over 16%. We already increased the spending, average spending of our consumer in 10%, 24% increase in the inventory turnover. And we're talking about growth, continuous strong growth of sales square meter. you might say, but you didn't grow in brick and mortar, only accelerated digital. Guys, omni retail, it's on the omni brand. It's the future of the business. This is relevant. This is our proposal for our consumer. And here it's over 20% growth. Fabio mentioned, and this is very important, that we already have collected the results since 2024, the results of the investments we made. fabio mentioned and this is very important that we already have collected the results since 2024 the results of the investments we made So we can clear this looking at the nine months, taken as a base to nine months base, customer base. so we can clear this looking at the nine months taken as a base to nine months base customer base I'm going to use 12 here. i'm going to use 12 here We use the active base. we use the active base Active base last 12 months. active base last 12 months We grew over 16%. we grew over 16% We already increased the spending, average spending of our consumer in 10%, 24% increase in the inventory turnover. we already increased the spending average spending of our consumer in 10% 24% increase in the inventory turnover And we're talking about growth, continuous strong growth of sales square meter. you might say, but you didn't grow in brick and mortar, only accelerated digital. and we're talking about growth continuous strong growth of sales square meter. you might say but you didn't grow in brick and mortar only accelerated digital Guys, omni retail, it's on the omni brand. guys omni retail it's on the omni brand It's the future of the business. it's the future of the business This is relevant. this is relevant This is our proposal for our consumer. this is our proposal for our consumer And here it's over 20% growth. and here it's over 20% growth The main thing is what's to come, what we expect of Renner going forward. Again, evolving as an objective for a fashion brand. Besides a retail, fashion retail, it's a reference fashion brand, accelerating our expansion to continue to enter in Brazil that has our target audience, ABC. It exists, and there's a lot of potential out there. Growing our total base of customer, not just conversion. Grow, grow the base, grow the base, grow the omni base, having opportunities, especially gaining productivity. Sometimes you might not see it, but we see it since 2024. We're capturing and we'll be able to scale even more going forward. And of course, supporting in a big gigantic space of digital with more profitability now, having the possibility to increase growth. Also, thank you so much. I finished now. Renner, our brand, Renner. The main thing is what's to come, what we expect of Renner going forward. the main thing is what's to come what we expect of renner going forward Again, evolving as an objective for a fashion brand. again evolving as an objective for a fashion brand Besides a retail, fashion retail, it's a reference fashion brand, accelerating our expansion to continue to enter in Brazil that has our target audience, ABC. besides a retail fashion retail it's a reference fashion brand accelerating our expansion to continue to enter in brazil that has our target audience abc It exists, and there's a lot of potential out there. it exists and there's a lot of potential out there Growing our total base of customer, not just conversion. growing our total base of customer not just conversion Grow, grow the base, grow the base, grow the omni base, having opportunities, especially gaining productivity. grow grow the base grow the base grow the omni base having opportunities especially gaining productivity Sometimes you might not see it, but we see it since 2024. sometimes you might not see it but we see it since 2024 We're capturing and we'll be able to scale even more going forward. we're capturing and we'll be able to scale even more going forward And of course, supporting in a big gigantic space of digital with more profitability now, having the possibility to increase growth. and of course supporting in a big gigantic space of digital with more profitability now having the possibility to increase growth Also, thank you so much. also thank you so much I finished now. i finished now Renner, our brand, Renner. renner our brand renner Now invite Gustavo and Barone to talk a bit about the other concepts and Youcom. Now invite Gustavo and Barone to talk a bit about the other concepts and Youcom. now invite gustavo and barone to talk a bit about the other concepts and youcom

Speaker 1: Let's go. As you saw, we have a detailed strategy for Renner S.A. that we saw more details, the strategy of Renner, which is one of our concepts for the strategy. Part of the strategy is how to expand the core, not just Renner. Renner is very important, yes. But for us to expand the core means also to evolve the other concepts because this way we can meet demand and opportunities that are specific of our customers, over 20 million customers that Fabio explained and even more going forward. The concepts are a strategic pillar, and we do this in a disciplined manner following three big stages. The first one, the understanding of the opportunity, how we can understand the customer. Let's go. let's go As you saw, we have a detailed strategy for Renner S.A. that we saw more details, the strategy of Renner, which is one of our concepts for the strategy. as you saw we have a detailed strategy for renner s.a that we saw more details the strategy of renner which is one of our concepts for the strategy Part of the strategy is how to expand the core, not just Renner. part of the strategy is how to expand the core not just renner Renner is very important, yes. renner is very important yes But for us to expand the core means also to evolve the other concepts because this way we can meet demand and opportunities that are specific of our customers, over 20 million customers that Fabio explained and even more going forward. but for us to expand the core means also to evolve the other concepts because this way we can meet demand and opportunities that are specific of our customers over 20 million customers that fabio explained and even more going forward The concepts are a strategic pillar, and we do this in a disciplined manner following three big stages. the concepts are a strategic pillar and we do this in a disciplined manner following three big stages The first one, the understanding of the opportunity, how we can understand the customer. the first one the understanding of the opportunity how we can understand the customer We are the fashion brand that understands the most the customer, the trends of our base, and the potential of Brazil. From there, we can do experimentations. We have a fortress of international sourcing that we can use to test, experiment, be it in existing concepts or new potential concepts for Renner, and its capillarity can be used to do a store-in-store, a way to experiment fast using all of the capillarity that we have to scale the concepts, existing concepts, and possible future concepts. We use this investment, platforms, technologies, digitalization, and data, the entire supply model that we apply in all the concepts. It leverages the ecosystem. We have a unique position in the market to accelerate the current concepts and potential new concepts for the future. We are the fashion brand that understands the most the customer, the trends of our base, and the potential of Brazil. we are the fashion brand that understands the most the customer the trends of our base and the potential of brazil From there, we can do experimentations. from there we can do experimentations We have a fortress of international sourcing that we can use to test, experiment, be it in existing concepts or new potential concepts for Renner, and its capillarity can be used to do a store-in-store, a way to experiment fast using all of the capillarity that we have to scale the concepts, existing concepts, and possible future concepts. we have a fortress of international sourcing that we can use to test experiment be it in existing concepts or new potential concepts for renner and its capillarity can be used to do a store-in-store a way to experiment fast using all of the capillarity that we have to scale the concepts existing concepts and possible future concepts We use this investment, platforms, technologies, digitalization, and data, the entire supply model that we apply in all the concepts. we use this investment platforms technologies digitalization and data the entire supply model that we apply in all the concepts It leverages the ecosystem. it leverages the ecosystem We have a unique position in the market to accelerate the current concepts and potential new concepts for the future. we have a unique position in the market to accelerate the current concepts and potential new concepts for the future Youcom is an example, an organic example created many years ago that is successful, that went through these three stages. Youcom is a case. It's a way to look at the process in a way that works and can be replicated. We don't have just Youcom and Renner. We have an ecosystem with different concepts, each one servicing a different public with a growth strategy that's adequate. Today we're talking about Renner and Youcom because these are the ones that we see the next five years, generation of value, growth in a more accelerated manner, but all of them contribute for the growth of the ecosystem. To talk about Youcom, I invite now Barone to explain the Youcom strategy for the next five years. Youcom is an example, an organic example created many years ago that is successful, that went through these three stages. youcom is an example an organic example created many years ago that is successful that went through these three stages Youcom is a case. youcom is a case It's a way to look at the process in a way that works and can be replicated. it's a way to look at the process in a way that works and can be replicated We don't have just Youcom and Renner. we don't have just youcom and renner We have an ecosystem with different concepts, each one servicing a different public with a growth strategy that's adequate. we have an ecosystem with different concepts each one servicing a different public with a growth strategy that's adequate Today we're talking about Renner and Youcom because these are the ones that we see the next five years, generation of value, growth in a more accelerated manner, but all of them contribute for the growth of the ecosystem. today we're talking about renner and youcom because these are the ones that we see the next five years generation of value growth in a more accelerated manner but all of them contribute for the growth of the ecosystem To talk about Youcom, I invite now Barone to explain the Youcom strategy for the next five years. to talk about youcom i invite now barone to explain the youcom strategy for the next five years

Speaker 3: Thank you, Gustavo. Thank you, everyone. My name is Claudio Barone. I'm the director of Youcom and Ashua. Thank you, Gustavo. thank you gustavo Thank you, everyone. thank you everyone My name is Claudio Barone. my name is claudio barone I'm the director of Youcom and Ashua. i'm the director of youcom and ashua It's a joy to me to talk about our Youcom. Youcom was born from a world reading, a reading of behavior, especially a reading of opportunity, market opportunity. It's this pyramid, the starting point in the past when we started to design the brand. This was the structure that started to connect the dots and started to make sense for us. Youcom was born exactly in the middle of this pyramid, but initially we divided the pyramid in two blocks. The top part, we put the specialized brands, brands that had certain characteristics and the public that had certain characteristics, normally with a strong aspiration, with a high experience, exclusiveness, higher prices. In the lower part of the pyramid, we put the big chains, the big networks. It's a joy to me to talk about our Youcom. it's a joy to me to talk about our youcom Youcom was born from a world reading, a reading of behavior, especially a reading of opportunity, market opportunity. youcom was born from a world reading a reading of behavior especially a reading of opportunity market opportunity It's this pyramid, the starting point in the past when we started to design the brand. it's this pyramid the starting point in the past when we started to design the brand This was the structure that started to connect the dots and started to make sense for us. this was the structure that started to connect the dots and started to make sense for us Youcom was born exactly in the middle of this pyramid, but initially we divided the pyramid in two blocks. youcom was born exactly in the middle of this pyramid but initially we divided the pyramid in two blocks The top part, we put the specialized brands, brands that had certain characteristics and the public that had certain characteristics, normally with a strong aspiration, with a high experience, exclusiveness, higher prices. the top part we put the specialized brands brands that had certain characteristics and the public that had certain characteristics normally with a strong aspiration with a high experience exclusiveness higher prices In the lower part of the pyramid, we put the big chains, the big networks. in the lower part of the pyramid we put the big chains the big networks Here, the competition for price is higher, elasticity is harder, scale is important, and brands that have a high reach, they reach many people, many consumers. As I said, Youcom was born exactly in the middle of the pyramid, not as a middle ground between the two universes and the two worlds, but yes, as a big opportunity, a territory where we can deliver an experience and an aspirational that are so strong as a top group, quality perceived that is interesting and simple for a team and for a public. Prices that we understand are higher than the lower group, but more accessible than the higher group. With time, Youcom starts to gain a bit of the strength from the bottom group, with more scale and more reach. Youcom is getting to more people, young people. Here, the competition for price is higher, elasticity is harder, scale is important, and brands that have a high reach, they reach many people, many consumers. here the competition for price is higher elasticity is harder scale is important and brands that have a high reach they reach many people many consumers As I said, Youcom was born exactly in the middle of the pyramid, not as a middle ground between the two universes and the two worlds, but yes, as a big opportunity, a territory where we can deliver an experience and an aspirational that are so strong as a top group, quality perceived that is interesting and simple for a team and for a public. as i said youcom was born exactly in the middle of the pyramid not as a middle ground between the two universes and the two worlds but yes as a big opportunity a territory where we can deliver an experience and an aspirational that are so strong as a top group quality perceived that is interesting and simple for a team and for a public Prices that we understand are higher than the lower group, but more accessible than the higher group. prices that we understand are higher than the lower group but more accessible than the higher group With time, Youcom starts to gain a bit of the strength from the bottom group, with more scale and more reach. with time youcom starts to gain a bit of the strength from the bottom group with more scale and more reach Youcom is getting to more people, young people. youcom is getting to more people young people Now, an important design for the brand, our heart, our core, everything that we do in the company, we do through this design that initially was done in 2018, 2019. In the middle of the heart, there's a word that defines Youcom, which is young. Around the heart, we have the main attributes and all the areas of Youcom. When we think about creating anything, we create from here. I'm going to talk about some attributes, and I won't list all of them, but Youcom is fashion and lifestyle. Our target audience is between 18 and 24 years old. Obviously, they interact and buy the brand 13 years old, 14 years old, 28, 38, 48 years old because they identify with the young lifestyle. I also bring that everything we do is looking at what happens in the world. Now, an important design for the brand, our heart, our core, everything that we do in the company, we do through this design that initially was done in 2018, 2019. now an important design for the brand our heart our core everything that we do in the company we do through this design that initially was done in 2018 2019 In the middle of the heart, there's a word that defines Youcom, which is young. in the middle of the heart there's a word that defines youcom which is young Around the heart, we have the main attributes and all the areas of Youcom. around the heart we have the main attributes and all the areas of youcom When we think about creating anything, we create from here. when we think about creating anything we create from here I'm going to talk about some attributes, and I won't list all of them, but Youcom is fashion and lifestyle. i'm going to talk about some attributes and i won't list all of them but youcom is fashion and lifestyle Our target audience is between 18 and 24 years old. our target audience is between 18 and 24 years old Obviously, they interact and buy the brand 13 years old, 14 years old, 28, 38, 48 years old because they identify with the young lifestyle. obviously they interact and buy the brand 13 years old 14 years old 28 38 48 years old because they identify with the young lifestyle I also bring that everything we do is looking at what happens in the world. i also bring that everything we do is looking at what happens in the world We have a lot of global inspiration, always bringing for a local translation. Why? Because the youth in Brazil has their own code, their own DNA. Youcom understands and speaks this language. Destination jeans is our key category. We are moved by it. Jeans is a young, fresh raw material that's 70 years old, but it continues to be relevant in the young people's closet. It's a great piece for the fashion for this public. What makes us very proud is responsible fashion because the public commitment from Renner S.A., our public commitments of Youcom. Moving on, I remind you that the first stores, Youcom stores started in 2013 to test a hypothesis, the same hypothesis we had in the center of the pyramid. Once we tested the hypothesis, we start to scale the brand. This plot shows the evolution from 2014 to 2025. Sales are in constant, September LTM. We have a lot of global inspiration, always bringing for a local translation. we have a lot of global inspiration always bringing for a local translation Why? why Because the youth in Brazil has their own code, their own DNA. because the youth in brazil has their own code their own dna Youcom understands and speaks this language. youcom understands and speaks this language Destination jeans is our key category. destination jeans is our key category We are moved by it. we are moved by it Jeans is a young, fresh raw material that's 70 years old, but it continues to be relevant in the young people's closet. jeans is a young fresh raw material that's 70 years old but it continues to be relevant in the young people's closet It's a great piece for the fashion for this public. it's a great piece for the fashion for this public What makes us very proud is responsible fashion because the public commitment from Renner S.A., our public commitments of Youcom. what makes us very proud is responsible fashion because the public commitment from renner s.a our public commitments of youcom Moving on, I remind you that the first stores, Youcom stores started in 2013 to test a hypothesis, the same hypothesis we had in the center of the pyramid. moving on i remind you that the first stores youcom stores started in 2013 to test a hypothesis the same hypothesis we had in the center of the pyramid Once we tested the hypothesis, we start to scale the brand. once we tested the hypothesis we start to scale the brand This plot shows the evolution from 2014 to 2025. this plot shows the evolution from 2014 to 2025 Sales are in constant, September LTM. sales are in constant september ltm In yellow, I have the evolution of the stores, plots that show a constant evolution, how much the model is strong and how the model is scalable. Now, this speed was only possible because we have worked a lot to make things happen. More than talking about the past, it's important to talk about the next cycle. We have four big pillars, four big avenues that will pave our future. First one is the opening of stores. We understand that the next cycle will arrive at 260-290 stores in operation. We have 152 currently. We understand that the digital has an importance in Youcom. It will gain more importance for the youth. It starts, he connects to the world through digital. Regarding the brand, the brand is gaining strength. It's becoming robust. The brand evolved a lot. In yellow, I have the evolution of the stores, plots that show a constant evolution, how much the model is strong and how the model is scalable. in yellow i have the evolution of the stores plots that show a constant evolution how much the model is strong and how the model is scalable Now, this speed was only possible because we have worked a lot to make things happen. now this speed was only possible because we have worked a lot to make things happen More than talking about the past, it's important to talk about the next cycle. more than talking about the past it's important to talk about the next cycle We have four big pillars, four big avenues that will pave our future. we have four big pillars four big avenues that will pave our future First one is the opening of stores. first one is the opening of stores We understand that the next cycle will arrive at 260-290 stores in operation. we understand that the next cycle will arrive at 260-290 stores in operation We have 152 currently. we have 152 currently We understand that the digital has an importance in Youcom. we understand that the digital has an importance in youcom It will gain more importance for the youth. it will gain more importance for the youth It starts, he connects to the world through digital. it starts he connects to the world through digital Regarding the brand, the brand is gaining strength. regarding the brand the brand is gaining strength It's becoming robust. it's becoming robust The brand evolved a lot. the brand evolved a lot We have a clear plan, robust plan so that the brand continues to gain strength and reaches new territories with the years, and lastly, I would like to highlight to you the importance of productivity and the increase in sales areas. We have a large number of new stores. This year only, we opened 17 stores. When you look at all the new stores, you know there's like 30% of those stores are at the initial cycle of evolution in terms of productivity, but they will continue growing. We're going to invest in it. On the other hand, we are all stores. You know they have enormous potential with major results, major sales square meter, and with profitability. In these cases, we can negotiate. You know we have some ambition. You know something really important for the brand. I'm going to show you something here. We have a clear plan, robust plan so that the brand continues to gain strength and reaches new territories with the years, and lastly, I would like to highlight to you the importance of productivity and the increase in sales areas. we have a clear plan robust plan so that the brand continues to gain strength and reaches new territories with the years and lastly i would like to highlight to you the importance of productivity and the increase in sales areas We have a large number of new stores. we have a large number of new stores This year only, we opened 17 stores. this year only we opened 17 stores When you look at all the new stores, you know there's like 30% of those stores are at the initial cycle of evolution in terms of productivity, but they will continue growing. when you look at all the new stores you know there's like 30% of those stores are at the initial cycle of evolution in terms of productivity but they will continue growing We're going to invest in it. we're going to invest in it On the other hand, we are all stores. on the other hand we are all stores You know they have enormous potential with major results, major sales square meter, and with profitability. you know they have enormous potential with major results major sales square meter, and with profitability In these cases, we can negotiate. in these cases we can negotiate You know we have some ambition. you know we have some ambition You know something really important for the brand. you know something really important for the brand I'm going to show you something here. i'm going to show you something here In 2013, we opened a store in the Anália Franco shopping mall with 110 square meter. After some time, it evolved. It grew in productivity. It became more profitable. And then after five or six years, we got to 190 square meter. We evolved a lot. We increased the area, got bigger and larger, and the store became more profitable in terms of sales. And two months ago, this store was reopened with 350 square meter. So we have done very important things to increase the size, expand the physical spaces of stores. This happens because you know the brand is more mature and also because the market mix has been evolving. Also, all that was only possible because Youcom is part of a robust ecosystem, which is very, very strong, offering us several advantages, you know very important advantages. In 2013, we opened a store in the Anália Franco shopping mall with 110 square meter. in 2013 we opened a store in the anália franco shopping mall with 110 square meter After some time, it evolved. after some time it evolved It grew in productivity. it grew in productivity It became more profitable. it became more profitable And then after five or six years, we got to 190 square meter. and then after five or six years we got to 190 square meter We evolved a lot. we evolved a lot We increased the area, got bigger and larger, and the store became more profitable in terms of sales. we increased the area got bigger and larger and the store became more profitable in terms of sales And two months ago, this store was reopened with 350 square meter. and two months ago this store was reopened with 350 square meter So we have done very important things to increase the size, expand the physical spaces of stores. so we have done very important things to increase the size expand the physical spaces of stores This happens because you know the brand is more mature and also because the market mix has been evolving. this happens because you know the brand is more mature and also because the market mix has been evolving Also, all that was only possible because Youcom is part of a robust ecosystem, which is very, very strong, offering us several advantages, you know very important advantages. also all that was only possible because youcom is part of a robust ecosystem which is very very strong offering us several advantages you know very important advantages Some of them are here, you know like SKU, 100% fulfillment, 100% by SKU, international sourcing, technology and data and shared services. Those are some of the examples. On the other hand, Youcom plays a leading role in the ecosystem. You know we make things fresh. We have a young base and bring them to the ecosystem, and we contribute to with a number of things, but the most relevant of all those things is that Youcom has created a model which is specialized, specialized store, which could be replicated. This is important, you know an exchange between brands and ecosystem. I mean, look at the exchange and the evolution. I see the future, and the future can be brilliant and bright, and now, just to wrap up, I want to bring you some figures which make us very proud. Some of them are here, you know like SKU, 100% fulfillment, 100% by SKU, international sourcing, technology and data and shared services. some of them are here you know like sku 100% fulfillment 100% by sku international sourcing technology and data and shared services Those are some of the examples. those are some of the examples On the other hand, Youcom plays a leading role in the ecosystem. on the other hand youcom plays a leading role in the ecosystem You know we make things fresh. you know we make things fresh We have a young base and bring them to the ecosystem, and we contribute to with a number of things, but the most relevant of all those things is that Youcom has created a model which is specialized, specialized store, which could be replicated. we have a young base and bring them to the ecosystem and we contribute to with a number of things but the most relevant of all those things is that youcom has created a model which is specialized specialized store which could be replicated This is important, you know an exchange between brands and ecosystem. this is important you know an exchange between brands and ecosystem I mean, look at the exchange and the evolution. i mean look at the exchange and the evolution I see the future, and the future can be brilliant and bright, and now, just to wrap up, I want to bring you some figures which make us very proud. i see the future and the future can be brilliant and bright and now just to wrap up i want to bring you some figures which make us very proud Our base, we have over 1.7 million customers, an active and solid base. It's been growing in terms of quantity and quality. When we look at NPS, either transactional, other competitive, you know we operate in the zone of excellence, better than the other players. We don't specialize or massive players, and NPS shows how much clients, customers recognize our efforts, our dedication, and most importantly, the consistency of the brand. In relation to social media, you know Youcom performs a lot better on social media, and I'd like to mention something here. When you look at 2025, TikTok, you know Youcom, among the specialized fashion brands, we are the brand that shows more engagement than the others. Here we got the customer base for extra information, but Youcom is much more than that. It's much more than numbers. We have building things in our everyday life. Our base, we have over 1.7 million customers, an active and solid base. our base we have over 1.7 million customers an active and solid base It's been growing in terms of quantity and quality. it's been growing in terms of quantity and quality When we look at NPS, either transactional, other competitive, you know we operate in the zone of excellence, better than the other players. when we look at nps either transactional other competitive you know we operate in the zone of excellence better than the other players We don't specialize or massive players, and NPS shows how much clients, customers recognize our efforts, our dedication, and most importantly, the consistency of the brand. we don't specialize or massive players and nps shows how much clients customers recognize our efforts our dedication and most importantly the consistency of the brand In relation to social media, you know Youcom performs a lot better on social media, and I'd like to mention something here. in relation to social media you know youcom performs a lot better on social media and i'd like to mention something here When you look at 2025, TikTok, you know Youcom, among the specialized fashion brands, we are the brand that shows more engagement than the others. when you look at 2025 tiktok you know youcom among the specialized fashion brands we are the brand that shows more engagement than the others Here we got the customer base for extra information, but Youcom is much more than that. here we got the customer base for extra information but youcom is much more than that It's much more than numbers. it's much more than numbers We have building things in our everyday life. we have building things in our everyday life You know we got a very large base of young customers. They interact, they purchase, they buy, they take an active role, and they identify with the brand. So that's all I had to say. I'd like to invite you guys to watch a video of our brand, of Youcom. Kids are always changing, and so is Youcom because this is what it's like to be a brand. It's to be getting updated every day, know what's happening in our lives and on social media, and obviously jump on TikTok, start trends first. You know we got a very large base of young customers. you know we got a very large base of young customers They interact, they purchase, they buy, they take an active role, and they identify with the brand. they interact they purchase they buy they take an active role and they identify with the brand So that's all I had to say. so that's all i had to say I'd like to invite you guys to watch a video of our brand, of Youcom. i'd like to invite you guys to watch a video of our brand of youcom Kids are always changing, and so is Youcom because this is what it's like to be a brand. kids are always changing and so is youcom because this is what it's like to be a brand It's to be getting updated every day, know what's happening in our lives and on social media, and obviously jump on TikTok, start trends first. it's to be getting updated every day know what's happening in our lives and on social media and obviously jump on tiktok start trends first

Speaker 16: Done. Thank you. Now I want to wrap up with this session, and I would like to invite our CFO, Daniel dos Santos, to come to the stage. Done. done Thank you. thank you Now I want to wrap up with this session, and I would like to invite our CFO, Daniel dos Santos, to come to the stage. now i want to wrap up with this session and i would like to invite our cfo daniel dos santos to come to the stage

Speaker 14: Good morning, everyone. Okay, oh, let me make adjustments here. First of all, thank you for being here. It's a great pleasure to see you here in our home. Good morning, everyone. good morning everyone Okay, oh, let me make adjustments here. okay oh let me make adjustments here First of all, thank you for being here. first of all thank you for being here It's a great pleasure to see you here in our home. it's a great pleasure to see you here in our home I'm going to talk a little bit about how this financial journey is going to look like, how we can monitor that to generate value. First, before I talk about this new cycle, I would like to invite you to talk about the past because you know the growth cycles that we had in the past will help us understand what we expect from this new cycle. The first cycle runs from 2010 to 2019. This cycle, the company grew 14%, mostly driven by sales areas. You know we almost, by area expansion, got almost three times as large. We opened stores in new cities, in major cities, major urban areas. You know it became really dense. When things get really dense, sales square meter in physical stores, they grew less than the inflation, you know because we had cannibalization. I'm going to talk a little bit about how this financial journey is going to look like, how we can monitor that to generate value. i'm going to talk a little bit about how this financial journey is going to look like how we can monitor that to generate value First, before I talk about this new cycle, I would like to invite you to talk about the past because you know the growth cycles that we had in the past will help us understand what we expect from this new cycle. first before i talk about this new cycle i would like to invite you to talk about the past because you know the growth cycles that we had in the past will help us understand what we expect from this new cycle The first cycle runs from 2010 to 2019. the first cycle runs from 2010 to 2019 This cycle, the company grew 14%, mostly driven by sales areas. this cycle the company grew 14% mostly driven by sales areas You know we almost, by area expansion, got almost three times as large. you know we almost by area expansion got almost three times as large We opened stores in new cities, in major cities, major urban areas. we opened stores in new cities in major cities major urban areas You know it became really dense. you know it became really dense When things get really dense, sales square meter in physical stores, they grew less than the inflation, you know because we had cannibalization. when things get really dense sales square meter in physical stores they grew less than the inflation you know because we had cannibalization The new stores ended up like taking over the old stores. The investments invested 9% focusing on the new stores. And on the next cycle, from 2020 to 2023, we grew 8%, which was mostly boosted by the digital sales. You know that was, it went from 4% to 14% digital share, almost three times as much. And another feature of this characteristic of the cycle that Fabio mentioned earlier was the investment, were the investments that we made in new capabilities. Those capabilities were intended to make the company more agile, more flexible, and more competitive. And I'm going to get into some specific details here of this new investment cycles. You know where we invest, make investments in, where we made investments in. We had a total investments of BRL 2 million in that cycle. We invested in CapEx and OpEx also. The new stores ended up like taking over the old stores. the new stores ended up like taking over the old stores The investments invested 9% focusing on the new stores. the investments invested 9% focusing on the new stores And on the next cycle, from 2020 to 2023, we grew 8%, which was mostly boosted by the digital sales. and on the next cycle from 2020 to 2023 we grew 8% which was mostly boosted by the digital sales You know that was, it went from 4% to 14% digital share, almost three times as much. you know that was it went from 4% to 14% digital share almost three times as much And another feature of this characteristic of the cycle that Fabio mentioned earlier was the investment, were the investments that we made in new capabilities. and another feature of this characteristic of the cycle that fabio mentioned earlier was the investment were the investments that we made in new capabilities Those capabilities were intended to make the company more agile, more flexible, and more competitive. those capabilities were intended to make the company more agile more flexible and more competitive And I'm going to get into some specific details here of this new investment cycles. and i'm going to get into some specific details here of this new investment cycles You know where we invest, make investments in, where we made investments in. you know where we invest make investments in where we made investments in We had a total investments of BRL 2 million in that cycle. we had a total investments of brl 2 million in that cycle We invested in CapEx and OpEx also. we invested in capex and opex also When we look at the investment blocks here and for digital share in terms of capabilities, we invested in a new omnichannel platform. We invested in it. We invested in new features either on the website or on the app. We digitalized our fashion development in logistics. As Aires mentioned earlier, we have a new distribution center, you know, but not only the center, but the new model like the fulfillment by SKU and our distribution center of Cabreúva. It supports our expectations for this new cycle until 2030. It has been built purposefully for that. Data analytics, we use artificial intelligence applied to automation, process automation, and decision making and structures and skills. You know, we have the new data service, technology service, technology divisions to support the AI journey. CRM, you know, we have a studio. When we look at the investment blocks here and for digital share in terms of capabilities, we invested in a new omnichannel platform. when we look at the investment blocks here and for digital share in terms of capabilities we invested in a new omnichannel platform We invested in it. we invested in it We invested in new features either on the website or on the app. we invested in new features either on the website or on the app We digitalized our fashion development in logistics. we digitalized our fashion development in logistics As Aires mentioned earlier, we have a new distribution center, you know, but not only the center, but the new model like the fulfillment by SKU and our distribution center of Cabreúva. as aires mentioned earlier we have a new distribution center you know but not only the center but the new model like the fulfillment by sku and our distribution center of cabreúva It supports our expectations for this new cycle until 2030. it supports our expectations for this new cycle until 2030 It has been built purposefully for that. it has been built purposefully for that Data analytics, we use artificial intelligence applied to automation, process automation, and decision making and structures and skills. data analytics we use artificial intelligence applied to automation process automation and decision making and structures and skills You know, we have the new data service, technology service, technology divisions to support the AI journey. you know we have the new data service technology service technology divisions to support the ai journey CRM, you know, we have a studio. crm you know we have a studio Yeah, this very building, you know, this video makes like very several content, several videos, and we made investments in the digital structure. And I want to build on what Fabio mentioned. Well, these investments, they give us a result. But when we look at the evolution of the past two years, you know, we grew more. Our total sales as a group, the omni sales, you know, combining retail, physical retail and digital stores, it grew 19% square meter. we became more profitable with a gross margin of 2% in the same period. Expenses on sales decreased 1.1% and our EPS grew 59% in the period. When we look at the capital structure, you know, higher returns, our cash flow went from BRL 0.7 billion to BRL 1.5 billion. The financial cycle, of course, specifically inventory days, 15 fewer days. Yeah, this very building, you know, this video makes like very several content, several videos, and we made investments in the digital structure. yeah this very building you know this video makes like very several content several videos and we made investments in the digital structure And I want to build on what Fabio mentioned. and i want to build on what fabio mentioned Well, these investments, they give us a result. well these investments they give us a result But when we look at the evolution of the past two years, you know, we grew more. but when we look at the evolution of the past two years you know we grew more Our total sales as a group, the omni sales, you know, combining retail, physical retail and digital stores, it grew 19% square meter. we became more profitable with a gross margin of 2% in the same period. our total sales as a group the omni sales you know combining retail physical retail and digital stores it grew 19% square meter. we became more profitable with a gross margin of 2% in the same period Expenses on sales decreased 1.1% and our EPS grew 59% in the period. expenses on sales decreased 1.1% and our eps grew 59% in the period When we look at the capital structure, you know, higher returns, our cash flow went from BRL 0.7 billion to BRL 1.5 billion. when we look at the capital structure you know higher returns our cash flow went from brl 0.7 billion to brl 1.5 billion The financial cycle, of course, specifically inventory days, 15 fewer days. the financial cycle of course specifically inventory days 15 fewer days And our ROIC aligned with our structured capital. It grew 4.6%. So that's an evolution that makes us really confident that with the new cycle, which I'm going to bring information for you now. What do we expect from this new cycle? So first of all, we expect to increase, generate, grow, generate value, have more profitability. And as I said earlier, you know, we expect to grow from nine to 13%. And this growth will basically come from BU Renner, like in terms of area expansion, store productivity. It will result from area expansion, store productivity, and increased digital sales. It will also be boosted by BU Youcom with investments of 6.7% over the course of this period. Now, I would like for you to take a look at this slide. Let's talk about these growth levers, you know, the expansion model, you know, in new cities. And our ROIC aligned with our structured capital. and our roic aligned with our structured capital It grew 4.6%. it grew 4.6% So that's an evolution that makes us really confident that with the new cycle, which I'm going to bring information for you now. so that's an evolution that makes us really confident that with the new cycle which i'm going to bring information for you now What do we expect from this new cycle? what do we expect from this new cycle So first of all, we expect to increase, generate, grow, generate value, have more profitability. so first of all we expect to increase generate grow generate value have more profitability And as I said earlier, you know, we expect to grow from nine to 13%. and as i said earlier you know we expect to grow from nine to 13% And this growth will basically come from BU Renner, like in terms of area expansion, store productivity. and this growth will basically come from bu renner like in terms of area expansion store productivity It will result from area expansion, store productivity, and increased digital sales. it will result from area expansion store productivity and increased digital sales It will also be boosted by BU Youcom with investments of 6.7% over the course of this period. it will also be boosted by bu youcom with investments of 6.7% over the course of this period Now, I would like for you to take a look at this slide. now i would like for you to take a look at this slide Let's talk about these growth levers, you know, the expansion model, you know, in new cities. let's talk about these growth levers you know the expansion model you know in new cities Gustavo said something about it. You know, we can see opportunities from 150 to 170 cities in which we can open a new Renner store. This shows a high quality demand. You know, high quality demand is like a demand involving the social group that we were operating on, and so if we apply the average share, we can have like an incremental opportunity of over BRL 2 billion, incremental sales without cannibalization. You know, given that in these cities we're getting into, there is no Renner store. Something very important here, 90% of our stores, we have 90 stores in over 90 cities with a population of over 200 million people. This is not a new model. It's been going on for a while, very successfully. Some indicators here that I can talk about, you know, the profitability indicators. Gustavo said something about it. gustavo said something about it You know, we can see opportunities from 150 to 170 cities in which we can open a new Renner store. you know we can see opportunities from 150 to 170 cities in which we can open a new renner store This shows a high quality demand. this shows a high quality demand You know, high quality demand is like a demand involving the social group that we were operating on, and so if we apply the average share, we can have like an incremental opportunity of over BRL 2 billion, incremental sales without cannibalization. you know high quality demand is like a demand involving the social group that we were operating on and so if we apply the average share we can have like an incremental opportunity of over brl 2 billion incremental sales without cannibalization You know, given that in these cities we're getting into, there is no Renner store. you know given that in these cities we're getting into there is no renner store Something very important here, 90% of our stores, we have 90 stores in over 90 cities with a population of over 200 million people. something very important here 90% of our stores we have 90 stores in over 90 cities with a population of over 200 million people This is not a new model. this is not a new model It's been going on for a while, very successfully. it's been going on for a while very successfully Some indicators here that I can talk about, you know, the profitability indicators. some indicators here that i can talk about you know the profitability indicators When we talk about this group of 90 stores in those 90 cities and compare them with the others, you know, first of all, they have a gross margin, which is superior. Second, they have a cost of operation square meter, which is smaller, lower than the other stores. And combined with the fact, combined with the idea of essential store, you know, they have all those features, all the items that are necessary for us to succeed, to delight the customer. You know, with a CapEx square meter, it's super competitive. And the combination of all those factors allows us to have a ROIC, a return on investment, which could be of up to 2% above the other stores. We obviously, we have an SKU model of fulfillment, which propelled this new model of expansion. When we talk about this group of 90 stores in those 90 cities and compare them with the others, you know, first of all, they have a gross margin, which is superior. when we talk about this group of 90 stores in those 90 cities and compare them with the others you know first of all they have a gross margin which is superior Second, they have a cost of operation square meter, which is smaller, lower than the other stores. second they have a cost of operation square meter, which is smaller lower than the other stores And combined with the fact, combined with the idea of essential store, you know, they have all those features, all the items that are necessary for us to succeed, to delight the customer. and combined with the fact combined with the idea of essential store you know they have all those features all the items that are necessary for us to succeed to delight the customer You know, with a CapEx square meter, it's super competitive. you know with a capex square meter, it's super competitive And the combination of all those factors allows us to have a ROIC, a return on investment, which could be of up to 2% above the other stores. and the combination of all those factors allows us to have a roic a return on investment which could be of up to 2% above the other stores We obviously, we have an SKU model of fulfillment, which propelled this new model of expansion. we obviously we have an sku model of fulfillment which propelled this new model of expansion You know, we have a capability to feed the stores with more precision, with like a personalized assortment for them. Without a shade of doubt, this can propel the performance of these new stores. Another point here is our omnichannel. So let's think a little bit about the evolution of this omnichannel. When we look at the past, the digital channel had like a 3% per share in it. And then one of the characteristics of that is the cost of serving above the physical store. And several investments that we made in from 2020 to 2023, and actually the last movement that we made when we internalized the digital into the Cabreúva Distribution Center, you know, it allowed us to reach the end of 2025 with a cost of serving, which is similar to the cost of serving in physical stores. You know, we have a capability to feed the stores with more precision, with like a personalized assortment for them. you know we have a capability to feed the stores with more precision with like a personalized assortment for them Without a shade of doubt, this can propel the performance of these new stores. without a shade of doubt this can propel the performance of these new stores Another point here is our omni channel. another point here is our omni channel So let's think a little bit about the evolution of this omni channel. so let's think a little bit about the evolution of this omni channel When we look at the past, the digital channel had like a 3% per share in it. when we look at the past the digital channel had like a 3% per share in it And then one of the characteristics of that is the cost of serving above the physical store. and then one of the characteristics of that is the cost of serving above the physical store And several investments that we made in from 2020 to 2023, and actually the last movement that we made when we internalized the digital into the Cabreúva Distribution Center, you know, it allowed us to reach the end of 2025 with a cost of serving, which is similar to the cost of serving in physical stores. and several investments that we made in from 2020 to 2023 and actually the last movement that we made when we internalized the digital into the cabreúva distribution center you know it allowed us to reach the end of 2025 with a cost of serving which is similar to the cost of serving in physical stores So for the company, for the journey that we have ahead of us, the company will be, you know, it doesn't matter for us, you know, customers can decide where they want to buy and purchase, either in the digital store or the physical store. Our expectations, well, in terms of growth, we want to grow with the digital channel above the average. You know, this will propel all the other items that my peers have mentioned earlier. Another growth point of growth here is the productivity gain. Well, you know, productivity, omni productivity, and Fabi said something really important about it in her talk. You know, omni productivity is a combination of our growth from the digital aspect with the increase in growth in physical stores. So why is that important? So for the company, for the journey that we have ahead of us, the company will be, you know, it doesn't matter for us, you know, customers can decide where they want to buy and purchase, either in the digital store or the physical store. so for the company for the journey that we have ahead of us the company will be you know it doesn't matter for us you know customers can decide where they want to buy and purchase either in the digital store or the physical store Our expectations, well, in terms of growth, we want to grow with the digital channel above the average. our expectations well in terms of growth we want to grow with the digital channel above the average You know, this will propel all the other items that my peers have mentioned earlier. you know this will propel all the other items that my peers have mentioned earlier Another growth point of growth here is the productivity gain. another growth point of growth here is the productivity gain Well, you know, productivity, omni productivity, and Fabi said something really important about it in her talk. well you know productivity omni productivity and fabi said something really important about it in her talk You know, omni productivity is a combination of our growth from the digital aspect with the increase in growth in physical stores. you know omni productivity is a combination of our growth from the digital aspect with the increase in growth in physical stores So why is that important? so why is that important We see, you know, all throughout this journey, you know, in the first cycle, things became really, really dense. We got new stores very close to the existing stores. In the second cycle, we converted the clients, you know, they began to share their sales journey on social media, and then lately, the management managed to boost, you know, they managed to show a productivity gain in omni productivity, of course, which is quite relevant for what we expect, and we are confident that it will continue to be this way. And on top of that, in addition to the productivity gain in mature stores and digital sales, we have the expansion into new cities, which I believe Gustavo Azevedo and I mentioned earlier, and this productivity gain is a major element of our journey, profitability journey. We see, you know, all throughout this journey, you know, in the first cycle, things became really, really dense. we see you know all throughout this journey you know in the first cycle things became really really dense We got new stores very close to the existing stores. we got new stores very close to the existing stores In the second cycle, we converted the clients, you know, they began to share their sales journey on social media, and then lately, the management managed to boost, you know, they managed to show a productivity gain in omni productivity, of course, which is quite relevant for what we expect, and we are confident that it will continue to be this way. in the second cycle we converted the clients you know they began to share their sales journey on social media and then lately the management managed to boost you know they managed to show a productivity gain in omni productivity of course which is quite relevant for what we expect and we are confident that it will continue to be this way And on top of that, in addition to the productivity gain in mature stores and digital sales, we have the expansion into new cities, which I believe Gustavo Azevedo and I mentioned earlier, and this productivity gain is a major element of our journey, profitability journey. and on top of that in addition to the productivity gain in mature stores and digital sales we have the expansion into new cities which i believe gustavo azevedo and i mentioned earlier and this productivity gain is a major element of our journey profitability journey You know, this productivity gain will allow us to boost our operation and allow us to continue reducing the expenses on income, on revenues. Let us not forget Realize. You know, Paula talked about it. First, the major focus of Realize is to help retail, is to boost, propel retail with an integrated journey, as Paula mentioned. You know, have the integration of Realize with the retail, bringing experiences and benefits to clients in a way that Realize could help us increase our customer base and make the existing customer base purchase more and more frequently. Another point that Paula mentioned is the execution of this strategy. How are we going to do that? First, we're going to look for low-risk customers focusing on the portfolio, you know, focusing on the purchase, on the sale at Renner, at the store. You know, this productivity gain will allow us to boost our operation and allow us to continue reducing the expenses on income, on revenues. you know this productivity gain will allow us to boost our operation and allow us to continue reducing the expenses on income on revenues Let us not forget Realize. let us not forget realize You know, Paula talked about it. you know paula talked about it First, the major focus of Realize is to help retail, is to boost, propel retail with an integrated journey, as Paula mentioned. first the major focus of realize is to help retail is to boost propel retail with an integrated journey as paula mentioned You know, have the integration of Realize with the retail, bringing experiences and benefits to clients in a way that Realize could help us increase our customer base and make the existing customer base purchase more and more frequently. you know have the integration of realize with the retail bringing experiences and benefits to clients in a way that realize could help us increase our customer base and make the existing customer base purchase more and more frequently Another point that Paula mentioned is the execution of this strategy. another point that paula mentioned is the execution of this strategy How are we going to do that? how are we going to do that First, we're going to look for low-risk customers focusing on the portfolio, you know, focusing on the purchase, on the sale at Renner, at the store. first we're going to look for low-risk customers focusing on the portfolio you know focusing on the purchase on the sale at renner at the store Our expectations concerning the operating results is that it will be around 8%-12% of the total EBITDA in the coming five years. Youcom, as I said earlier, you know, sales growth higher than Renner. We expect Youcom to grow, be above the average and increase profitability, so basically, in expansion of stores, the example that Barone mentioned, you know, their older stores need to expand them, and so they have an incremental sales, incremental share in the digital channel. As for profitability, we have gross margin gains, and then operational leverage. You know, this is the fruit of our labor, you know, we can see here. We almost have like twice as many stores over these past years. Our expectations concerning the operating results is that it will be around 8%-12% of the total EBITDA in the coming five years. our expectations concerning the operating results is that it will be around 8%-12% of the total ebitda in the coming five years Youcom, as I said earlier, you know, sales growth higher than Renner. youcom as i said earlier you know sales growth higher than renner We expect Youcom to grow, be above the average and increase profitability, so basically, in expansion of stores, the example that Barone mentioned, you know, their older stores need to expand them, and so they have an incremental sales, incremental share in the digital channel. we expect youcom to grow be above the average and increase profitability so basically in expansion of stores the example that barone mentioned you know their older stores need to expand them and so they have an incremental sales incremental share in the digital channel As for profitability, we have gross margin gains, and then operational leverage. as for profitability we have gross margin gains and then operational leverage You know, this is the fruit of our labor, you know, we can see here. you know this is the fruit of our labor you know we can see here We almost have like twice as many stores over these past years. we almost have like twice as many stores over these past years We expect from Camicado a growth above the average of the market where Camicado is located because it's home decor. We expect from Camicado a growth above the average of the market where Camicado is located because it's home decor. we expect from camicado a growth above the average of the market where camicado is located because it's home decor This growth will come from expansion of stores, selection of stores, and remodeling of stores, and a continuous increment of the share of digital sales inside Camicado. Regarding profitability, we expect that Camicado will follow to continue to grow in profitability. Camicado, we remember in the Investor Day, we presented the team the great success in the execution strategy through their own brands, exclusive brands. Also, today from the sales of Camicado, around 85% of sales are their own brand or exclusive brands. This allowed, besides the customer experience that is a lot more delighted with the sorting that we have that's different, allows a differential of the sorting we have versus what we have in the market, gaining profitability or sales square meter when we compare to the base of 22, increased in almost 27%, and our gross margin increased 5.2 percentage points in the period. This growth will come from expansion of stores, selection of stores, and remodeling of stores, and a continuous increment of the share of digital sales inside Camicado. this growth will come from expansion of stores selection of stores and remodeling of stores and a continuous increment of the share of digital sales inside camicado Regarding profitability, we expect that Camicado will follow to continue to grow in profitability. regarding profitability we expect that camicado will follow to continue to grow in profitability Camicado, we remember in the Investor Day, we presented the team the great success in the execution strategy through their own brands, exclusive brands. camicado we remember in the investor day, we presented the team the great success in the execution strategy through their own brands exclusive brands Also, today from the sales of Camicado, around 85% of sales are their own brand or exclusive brands. also today from the sales of camicado around 85% of sales are their own brand or exclusive brands This allowed, besides the customer experience that is a lot more delighted with the sorting that we have that's different, allows a differential of the sorting we have versus what we have in the market, gaining profitability or sales square meter when we compare to the base of 22, increased in almost 27%, and our gross margin increased 5.2 percentage points in the period. this allowed besides the customer experience that is a lot more delighted with the sorting that we have that's different allows a differential of the sorting we have versus what we have in the market gaining profitability or sales square meter when we compare to the base of 22 increased in almost 27% and our gross margin increased 5.2 percentage points in the period Adding now, looking at the indicators that we follow in this journey, first reminding you the big objective of the strategy is to scale growth and value generation with profitability, and the indicators that will guide our journey that we shared as a relevant fact earlier today was first the annual growth of retail revenue of 9%-13% during these five years. Second, continuous gain in gross margin. The representativity of retail expenses on top of the expenses in retail, we have, we expect the reduction 2.5-3.5 percentage points for 2030 compared to 2025. This journey is the objective we have until 2030. Margin, EBITDA, retail Pre-FS, close 2030 in the range of 15%-20%, above 18%-20% above the period pre-pandemic, more efficiency of capital, be it, as you observed, CapEx that we expect is lower than the growth in sales. Adding now, looking at the indicators that we follow in this journey, first reminding you the big objective of the strategy is to scale growth and value generation with profitability, and the indicators that will guide our journey that we shared as a relevant fact earlier today was first the annual growth of retail revenue of 9%-13% during these five years. adding now looking at the indicators that we follow in this journey first reminding you the big objective of the strategy is to scale growth and value generation with profitability and the indicators that will guide our journey that we shared as a relevant fact earlier today was first the annual growth of retail revenue of 9%-13% during these five years Second, continuous gain in gross margin. second continuous gain in gross margin The representativity of retail expenses on top of the expenses in retail, we have, we expect the reduction 2.5-3.5 percentage points for 2030 compared to 2025. the representativity of retail expenses on top of the expenses in retail we have we expect the reduction 2.5-3.5 percentage points for 2030 compared to 2025 This journey is the objective we have until 2030. this journey is the objective we have until 2030 Margin, EBITDA, retail Pre-FS, close 2030 in the range of 15%-20%, above 18%-20% above the period pre-pandemic, more efficiency of capital, be it, as you observed, CapEx that we expect is lower than the growth in sales. margin ebitda retail pre-fs close 2030 in the range of 15%-20% above 18%-20% above the period pre-pandemic more efficiency of capital be it as you observed capex that we expect is lower than the growth in sales We have efficiency regarding the fixed capital of the company. Also, the financial cycle especially motivated with the gain of inventory days. With this, we reach a return on capital of 20% by 2030. This is when we add all the indicators, brings us to this big evolution in return of capital. Talking about capital structure now, first, let's look at the trajectory of the company. First, the company has a strong balance sheet when we observed the last four years. There was a lot of work of lowering the level of debt and keeping the level of cash flow that we believe is adequate to run the operation, be it the retail. We have a strong, consistent cash generation above BRL 1 million. We were able to do a strong distribution of profit to the shareholders. We have efficiency regarding the fixed capital of the company. we have efficiency regarding the fixed capital of the company Also, the financial cycle especially motivated with the gain of inventory days. also the financial cycle especially motivated with the gain of inventory days With this, we reach a return on capital of 20% by 2030. with this we reach a return on capital of 20% by 2030 This is when we add all the indicators, brings us to this big evolution in return of capital. this is when we add all the indicators brings us to this big evolution in return of capital Talking about capital structure now, first, let's look at the trajectory of the company. talking about capital structure now first let's look at the trajectory of the company First, the company has a strong balance sheet when we observed the last four years. first the company has a strong balance sheet when we observed the last four years There was a lot of work of lowering the level of debt and keeping the level of cash flow that we believe is adequate to run the operation, be it the retail. there was a lot of work of lowering the level of debt and keeping the level of cash flow that we believe is adequate to run the operation be it the retail We have a strong, consistent cash generation above BRL 1 million. we have a strong consistent cash generation above brl 1 million We were able to do a strong distribution of profit to the shareholders. we were able to do a strong distribution of profit to the shareholders If we look at the last four years, this shows that we returned BRL 4.6 billion through interest on our own capital, IOC, or through repurchasing plan. In the year 2025, it was BRL 1.7 billion when we add everything that we did this year with JCP that we communicated this morning earlier. We have BRL 1.7 billion, more than 100% of the profit expected for the year 2025. Moving on, when we look at this new cycle of growth that we expect, first, growth with gain in productivity, gain in profitability, CapEx around 6%-7%, 6.5%-7%. What we have as a result, this will generate profitability. We generate strong cash flow, and we believe we will do a capital distribution of profits to our shareholders above the market average. How will we do this? If we look at the last four years, this shows that we returned BRL 4.6 billion through interest on our own capital, IOC, or through repurchasing plan. if we look at the last four years this shows that we returned brl 4.6 billion through interest on our own capital ioc or through repurchasing plan In the year 2025, it was BRL 1.7 billion when we add everything that we did this year with JCP that we communicated this morning earlier. in the year 2025 it was brl 1.7 billion when we add everything that we did this year with jcp that we communicated this morning earlier We have BRL 1.7 billion, more than 100% of the profit expected for the year 2025. we have brl 1.7 billion more than 100% of the profit expected for the year 2025 Moving on, when we look at this new cycle of growth that we expect, first, growth with gain in productivity, gain in profitability, CapEx around 6%-7%, 6.5%-7%. moving on when we look at this new cycle of growth that we expect first growth with gain in productivity gain in profitability capex around 6%-7% 6.5%-7% What we have as a result, this will generate profitability. what we have as a result this will generate profitability We generate strong cash flow, and we believe we will do a capital distribution of profits to our shareholders above the market average. we generate strong cash flow and we believe we will do a capital distribution of profits to our shareholders above the market average How will we do this? how will we do this A bit for us to understand the logic of how we're going to do this. First, we will continue to have a strong balance sheet that allows us to have flexibility and prudence. We want to execute first the plan that we presented to you and the eventual opportunities that we can see in the next five years. At the same time, have consciousness of the cyclical business seasonality. It's a characteristic of our business, and we must be flexible. Besides this, to deal with political environments or macro environments that are diverse that we can have in Brazil, all of this gives us the clarity that we need to have a strong balance sheet and have flexibility to operate in this environment. A bit for us to understand the logic of how we're going to do this. a bit for us to understand the logic of how we're going to do this First, we will continue to have a strong balance sheet that allows us to have flexibility and prudence. first we will continue to have a strong balance sheet that allows us to have flexibility and prudence We want to execute first the plan that we presented to you and the eventual opportunities that we can see in the next five years. we want to execute first the plan that we presented to you and the eventual opportunities that we can see in the next five years At the same time, have consciousness of the cyclical business seasonality. at the same time have consciousness of the cyclical business seasonality It's a characteristic of our business, and we must be flexible. it's a characteristic of our business and we must be flexible Besides this, to deal with political environments or macro environments that are diverse that we can have in Brazil, all of this gives us the clarity that we need to have a strong balance sheet and have flexibility to operate in this environment. besides this to deal with political environments or macro environments that are diverse that we can have in brazil all of this gives us the clarity that we need to have a strong balance sheet and have flexibility to operate in this environment The plan that we presented to you is a plan where the generation of cash that we have in the period. We can sustain it with the cash generation itself, six-7.5. The CapEx is observed with a strong cash generation that we have in the period. This way, we don't need to leverage to execute the plan that we presented to you. What would be our strategy of capital distribution? First, we will prioritize JCP, IOC. So there's a fiscal benefit that's important. We will exhaust the IOC first. We will complement the distribution of dividends and/or a repurchasing plan, always limited to the profit reserves that we have and/or our minimum cash. This is necessary. The company believes it's necessary for the retail operation and the financial institution operation. Another important point, we have seen some provocation regarding leverage for an eventual distribution or capital distribution. The plan that we presented to you is a plan where the generation of cash that we have in the period. the plan that we presented to you is a plan where the generation of cash that we have in the period We can sustain it with the cash generation itself, six-7.5. we can sustain it with the cash generation itself six-7.5 The CapEx is observed with a strong cash generation that we have in the period. the capex is observed with a strong cash generation that we have in the period This way, we don't need to leverage to execute the plan that we presented to you. this way we don't need to leverage to execute the plan that we presented to you What would be our strategy of capital distribution? what would be our strategy of capital distribution First, we will prioritize JCP, IOC. first we will prioritize jcp ioc So there's a fiscal benefit that's important. so there's a fiscal benefit that's important We will exhaust the IOC first. we will exhaust the ioc first We will complement the distribution of dividends and/or a repurchasing plan, always limited to the profit reserves that we have and/or our minimum cash. we will complement the distribution of dividends and/or a repurchasing plan always limited to the profit reserves that we have and/or our minimum cash This is necessary. this is necessary The company believes it's necessary for the retail operation and the financial institution operation. the company believes it's necessary for the retail operation and the financial institution operation Another important point, we have seen some provocation regarding leverage for an eventual distribution or capital distribution. another important point we have seen some provocation regarding leverage for an eventual distribution or capital distribution Continuously, we do internal exercises to look at our capital structure to see if it's optimized or not, to see the best way to give return to the shareholders, especially leveraging and reducing capital. We evaluated, and the conclusion was it doesn't make sense. It doesn't bring benefits for the company and for the shareholders in this moment, given the high interest rates of the moment. What we expect for the next five years is that we can have a distribution of our profit from 50%-80%, and an example of the trust and commitment with this logic that we just presented to you, we communicated this morning. First, the finishing of the plan that we started in February 2025. We executed 94% of the plan, exhausting the reserves that we had to be distributed. Continuously, we do internal exercises to look at our capital structure to see if it's optimized or not, to see the best way to give return to the shareholders, especially leveraging and reducing capital. continuously we do internal exercises to look at our capital structure to see if it's optimized or not to see the best way to give return to the shareholders especially leveraging and reducing capital We evaluated, and the conclusion was it doesn't make sense. we evaluated and the conclusion was it doesn't make sense It doesn't bring benefits for the company and for the shareholders in this moment, given the high interest rates of the moment. it doesn't bring benefits for the company and for the shareholders in this moment given the high interest rates of the moment What we expect for the next five years is that we can have a distribution of our profit from 50%-80%, and an example of the trust and commitment with this logic that we just presented to you, we communicated this morning. what we expect for the next five years is that we can have a distribution of our profit from 50%-80% and an example of the trust and commitment with this logic that we just presented to you we communicated this morning First, the finishing of the plan that we started in February 2025. first the finishing of the plan that we started in february 2025 We executed 94% of the plan, exhausting the reserves that we had to be distributed. we executed 94% of the plan exhausting the reserves that we had to be distributed We exhausted BRL 1.7 billion, allowed us to distribute in this period, exhausting the reserves that we have for distribution. Relying on the profitability, profit generated in the next periods, we communicated a new plan at the same size as the previous plan that will be executed the next 18 months as we generate new reserves that can be distributed. I finished my part here. I invite Fabiana to talk to us about the next steps. Thank you, guys. We exhausted BRL 1.7 billion, allowed us to distribute in this period, exhausting the reserves that we have for distribution. we exhausted brl 1.7 billion allowed us to distribute in this period exhausting the reserves that we have for distribution Relying on the profitability, profit generated in the next periods, we communicated a new plan at the same size as the previous plan that will be executed the next 18 months as we generate new reserves that can be distributed. relying on the profitability profit generated in the next periods we communicated a new plan at the same size as the previous plan that will be executed the next 18 months as we generate new reserves that can be distributed I finished my part here. i finished my part here I invite Fabiana to talk to us about the next steps. i invite fabiana to talk to us about the next steps Thank you, guys. thank you guys

Speaker 16: Thank you, Daniel. We will start now our Q&A session. Remember, those that are connected online can ask their questions clicking on the Q&A button, sending your questions in writing. The ones that are in person, just raise your hand. Let us organize ourselves. Let's bring everybody to the stage. We bring the mic to you. Thank you, Daniel. thank you daniel We will start now our Q&A session. we will start now our q&a session Remember, those that are connected online can ask their questions clicking on the Q&A button, sending your questions in writing. remember those that are connected online can ask their questions clicking on the q&a button sending your questions in writing The ones that are in person, just raise your hand. the ones that are in person just raise your hand Let us organize ourselves. let us organize ourselves Let's bring everybody to the stage. let's bring everybody to the stage We bring the mic to you. we bring the mic to you First, tell us your name, the institution that you're part of, and the questions that we cannot answer here today. Please send it to the IR email, and we will answer them later. I invite to the stage Fabio, Daniel, Fabi, Paula, and Aires. All the executives that came up here today are very close to us, available to answer specific questions you might have. First, tell us your name, the institution that you're part of, and the questions that we cannot answer here today. first tell us your name the institution that you're part of and the questions that we cannot answer here today Please send it to the IR email, and we will answer them later. please send it to the ir email and we will answer them later I invite to the stage Fabio, Daniel, Fabi, Paula, and Aires. i invite to the stage fabio daniel fabi paula and aires All the executives that came up here today are very close to us, available to answer specific questions you might have. all the executives that came up here today are very close to us available to answer specific questions you might have Good morning. Congratulations for your presentation. Fabio, how do you see the evolution of the market structure and what competitors do you have? Where do you see white space as a new concept and how we should think about the addressable market, incremental price points, and lifestyle of a new brand? Good morning. good morning Congratulations for your presentation. congratulations for your presentation Fabio, how do you see the evolution of the market structure and what competitors do you have? fabio how do you see the evolution of the market structure and what competitors do you have Where do you see white space as a new concept and how we should think about the addressable market, incremental price points, and lifestyle of a new brand? where do you see white space as a new concept and how we should think about the addressable market incremental price points and lifestyle of a new brand

Speaker 12: Thank you for your question and for your presence. I think that the market is making a movement. Thank you for your question and for your presence. thank you for your question and for your presence I think that the market is making a movement. i think that the market is making a movement The biggest movement was in the pandemic and the post-pandemic moment, the entry of players, different model players. Digital growth was very strong. The market reorganized itself. We see growth, a higher growth of the formal players and the big players, entry of new players. As we showed, the market is huge. It's still very pulverized. It's still very informal. So there's a lot of space for the entrance of formal players and for growth, and there's space for everyone. We are positioned better than any of the other players, I believe. If we look at Brazil, 18% of the fashion sales is in digital, 82% is in brick and mortar. We are in brick and mortar and digital. We see a few players that are just digital or just brick and mortar. We have the potential to capture both. The biggest movement was in the pandemic and the post-pandemic moment, the entry of players, different model players. the biggest movement was in the pandemic and the post-pandemic moment the entry of players different model players Digital growth was very strong. digital growth was very strong The market reorganized itself. the market reorganized itself We see growth, a higher growth of the formal players and the big players, entry of new players. we see growth a higher growth of the formal players and the big players entry of new players As we showed, the market is huge. as we showed the market is huge It's still very pulverized. it's still very pulverized It's still very informal. it's still very informal So there's a lot of space for the entrance of formal players and for growth, and there's space for everyone. so there's a lot of space for the entrance of formal players and for growth and there's space for everyone We are positioned better than any of the other players, I believe. we are positioned better than any of the other players i believe If we look at Brazil, 18% of the fashion sales is in digital, 82% is in brick and mortar. if we look at brazil 18% of the fashion sales is in digital 82% is in brick and mortar We are in brick and mortar and digital. we are in brick and mortar and digital We see a few players that are just digital or just brick and mortar. we see a few players that are just digital or just brick and mortar We have the potential to capture both. we have the potential to capture both Another important point when we look at the others that act on top of this. We invested more. We have bigger capabilities, installed capacity to grow with efficiency. It allows us to have an important potential in terms of growth for the current concepts that we have and future growth of other concepts. We brought the case of Youcom here because sometimes we hear some narratives of, "Oh, you cannot create a brand." We created the youngest fashion brand, the strongest youth fashion brand in Brazil internally. Camicado was an acquisition and was also Youcom and Ashua were born in Youcom. Machine of a youth lifestyle. We have many lifestyle segments inside Renner with the growth potential in Renner. We showed this Fabio and the guys at. But also, Youcom, that's a lifestyle. There are many others. Another important point when we look at the others that act on top of this. another important point when we look at the others that act on top of this We invested more. we invested more We have bigger capabilities, installed capacity to grow with efficiency. we have bigger capabilities installed capacity to grow with efficiency It allows us to have an important potential in terms of growth for the current concepts that we have and future growth of other concepts. it allows us to have an important potential in terms of growth for the current concepts that we have and future growth of other concepts We brought the case of Youcom here because sometimes we hear some narratives of, "Oh, you cannot create a brand." We created the youngest fashion brand, the strongest youth fashion brand in Brazil internally. we brought the case of youcom here because sometimes we hear some narratives of "oh you cannot create a brand." we created the youngest fashion brand the strongest youth fashion brand in brazil internally Camicado was an acquisition and was also Youcom and Ashua were born in Youcom. camicado was an acquisition and was also youcom and ashua were born in youcom Machine of a youth lifestyle. machine of a youth lifestyle We have many lifestyle segments inside Renner with the growth potential in Renner. we have many lifestyle segments inside renner with the growth potential in renner We showed this Fabio and the guys at. we showed this fabio and the guys at But also, Youcom, that's a lifestyle. but also youcom that's a lifestyle There are many others. there are many others For example, the ones that we have worked on in Renner can be future concepts of specialized business with the same potential for growth also. Your opinion about makeup and perfumery. When we talk about fashion and lifestyle, these are correlated segments inside Renner and future opportunities. We see, especially in Renner, the potential to grow, be it fashion, be it beauty. It's our core. We have potential in what we already do and what we can do in our core, expanding our potential. Thank you. For example, the ones that we have worked on in Renner can be future concepts of specialized business with the same potential for growth also. for example the ones that we have worked on in renner can be future concepts of specialized business with the same potential for growth also Your opinion about makeup and perfumery. your opinion about makeup and perfumery When we talk about fashion and lifestyle, these are correlated segments inside Renner and future opportunities. when we talk about fashion and lifestyle these are correlated segments inside renner and future opportunities We see, especially in Renner, the potential to grow, be it fashion, be it beauty. we see especially in renner the potential to grow be it fashion be it beauty It's our core. it's our core We have potential in what we already do and what we can do in our core, expanding our potential. we have potential in what we already do and what we can do in our core expanding our potential Thank you. thank you Thank you, Bob. Good morning. Thank you for this presentation for the complete update. I'm from Citi. I have two points more financial. First, I want to explore a bit the improvement in the expense retail, 2.5 percentage points. How much of this comes from operational leverage? Thank you, Bob. thank you bob Good morning. good morning Thank you for this presentation for the complete update. thank you for this presentation for the complete update I'm from Citi. i'm from citi I have two points more financial. i have two points more financial First, I want to explore a bit the improvement in the expense retail, 2.5 percentage points. first i want to explore a bit the improvement in the expense retail 2.5 percentage points How much of this comes from operational leverage? how much of this comes from operational leverage We understand that up to now, the big part of the message regarding the expense improvement, the dilution would come through operational leverage unless they cut off expenses. I want to hear a bit if it changed a little bit. If you're seeking efficiency, it would be important, Fabio, Daniel, to mention this here. Fabi. Sorry. Paula. Sorry, Paula. They're similar. We understand that up to now, the big part of the message regarding the expense improvement, the dilution would come through operational leverage unless they cut off expenses. we understand that up to now the big part of the message regarding the expense improvement the dilution would come through operational leverage unless they cut off expenses I want to hear a bit if it changed a little bit. i want to hear a bit if it changed a little bit If you're seeking efficiency, it would be important, Fabio, Daniel, to mention this here. if you're seeking efficiency it would be important fabio daniel to mention this here Fabi. fabi Sorry. sorry Paula. paula Sorry, Paula. sorry paula They're similar. they're similar

Speaker 16: There's a, yeah, they're related. Paula from Realize. It would be interesting to talk about retail also. Just one more quick thing. 70% of payout that we think you're giving soft guidance for the next years. It's important to understand looking at next year, especially the discussion we have in terms of tax, how much this can be an extraordinary dividend, how much buyback. What is buyback? I think it's very relevant. We've seen many companies talk about this. I'm sorry, Paula. There's a, yeah, they're related. there's a yeah they're related Paula from Realize. paula from realize It would be interesting to talk about retail also. it would be interesting to talk about retail also Just one more quick thing. 70% of payout that we think you're giving soft guidance for the next years. just one more quick thing 70% of payout that we think you're giving soft guidance for the next years It's important to understand looking at next year, especially the discussion we have in terms of tax, how much this can be an extraordinary dividend, how much buyback. it's important to understand looking at next year especially the discussion we have in terms of tax how much this can be an extraordinary dividend how much buyback What is buyback? what is buyback I think it's very relevant. i think it's very relevant We've seen many companies talk about this. we've seen many companies talk about this I'm sorry, Paula. i'm sorry paula Thank you for your question, João. The first part of the question is a bit of everything you talk about. A part is dilution due to growth and leverage. A part is a reduction in specific points. A part is, Paula said, in Realize is the optimization of Realize. I'm going to ask Daniel to convey the numbers that we already mentioned before and the part distribution also. What Daniel made clear for this year, we exhausted the reserves, but we can talk about the following years also, Daniel. Thank you for your question, João. thank you for your question joão The first part of the question is a bit of everything you talk about. A part is dilution due to growth and leverage. the first part of the question is a bit of everything you talk about. a part is dilution due to growth and leverage A part is a reduction in specific points. a part is a reduction in specific points A part is, Paula said, in Realize is the optimization of Realize. a part is paula said in realize is the optimization of realize I'm going to ask Daniel to convey the numbers that we already mentioned before and the part distribution also. i'm going to ask daniel to convey the numbers that we already mentioned before and the part distribution also What Daniel made clear for this year, we exhausted the reserves, but we can talk about the following years also, Daniel. what daniel made clear for this year we exhausted the reserves but we can talk about the following years also daniel

Speaker 14: Yes, yes. Let's talk a bit about the distribution issue. First point, we saw a strong movement of a few companies doing exceptional distribution now, but all distribution is done with existing reserves. That's why I was very emphatic in saying that BRL 1.7 billion exhausted all of our reserves. Yes, yes. yes yes Let's talk a bit about the distribution issue. let's talk a bit about the distribution issue First point, we saw a strong movement of a few companies doing exceptional distribution now, but all distribution is done with existing reserves. first point we saw a strong movement of a few companies doing exceptional distribution now but all distribution is done with existing reserves That's why I was very emphatic in saying that BRL 1.7 billion exhausted all of our reserves. that's why i was very emphatic in saying that brl 1.7 billion exhausted all of our reserves There aren't new reserves that can be used this year because we distributed all of them in 2025 with the results that were published until now. Now we are forming new reserves. When February, March, when we published Q4 and you compose new reserves, as we mentioned, the priority is IOC. Even with the new taxing, JCP continues to be the first most advantage option to distribute results. After, as we communicated this morning, in a first moment, we have our repurchasing model that is activated will be a way to distribute our reserves. Regarding expenses, it's a component of both. We have a part of reduction, a part of Realize. Paula mentioned, right, Paula, that the balance sheet, you want to talk about 2026 and 2027 onwards, of course. It's important when we look at Realize. There aren't new reserves that can be used this year because we distributed all of them in 2025 with the results that were published until now. there aren't new reserves that can be used this year because we distributed all of them in 2025 with the results that were published until now Now we are forming new reserves. now we are forming new reserves When February, March, when we published Q4 and you compose new reserves, as we mentioned, the priority is IOC. when february march when we published q4 and you compose new reserves as we mentioned the priority is ioc Even with the new taxing, JCP continues to be the first most advantage option to distribute results. even with the new taxing jcp continues to be the first most advantage option to distribute results After, as we communicated this morning, in a first moment, we have our repurchasing model that is activated will be a way to distribute our reserves. after as we communicated this morning in a first moment we have our repurchasing model that is activated will be a way to distribute our reserves Regarding expenses, it's a component of both. regarding expenses it's a component of both We have a part of reduction, a part of Realize. we have a part of reduction a part of realize Paula mentioned, right, Paula, that the balance sheet, you want to talk about 2026 and 2027 onwards, of course. paula mentioned right paula that the balance sheet you want to talk about 2026 and 2027 onwards of course It's important when we look at Realize. it's important when we look at realize The last three years, we observed there was, in fact, a growth of M&A. The last three years, we observed there was, in fact, a growth of M&A. the last three years we observed there was in fact a growth of m&a M&A, that's important. What happens today in the fiscal year? M&A, that's important. m&a that's important What happens today in the fiscal year? what happens today in the fiscal year

Speaker 16: We are in the middle of a digital transformation where we are having our technological catch-up because there was a technological issue in our platform. When you're doing a digital transformation, you continue with the run the business expenses while you're doing the investment of change the business investment. This should finish these parallel expenses between the second semester of 2026 and the beginning of 2027. And from 2027 onwards, you will be able to observe that it will gain the capturing of efficiency from there on or level, especially the variable expenses related to processing costs, how much we can be efficient in our core business. We are in the middle of a digital transformation where we are having our technological catch-up because there was a technological issue in our platform. we are in the middle of a digital transformation where we are having our technological catch-up because there was a technological issue in our platform When you're doing a digital transformation, you continue with the run the business expenses while you're doing the investment of change the business investment. when you're doing a digital transformation you continue with the run the business expenses while you're doing the investment of change the business investment This should finish these parallel expenses between the second semester of 2026 and the beginning of 2027. this should finish these parallel expenses between the second semester of 2026 and the beginning of 2027 And from 2027 onwards, you will be able to observe that it will gain the capturing of efficiency from there on or level, especially the variable expenses related to processing costs, how much we can be efficient in our core business. and from 2027 onwards you will be able to observe that it will gain the capturing of efficiency from there on or level especially the variable expenses related to processing costs how much we can be efficient in our core business No doubt will bring a volumetry SG&A and total expenses of Realize to a healthier level than we see today. It's important to remember, even in the years where we are a little bit more compressed in terms of expenses, we are growing aligned to the inflation. So there's no relevant detachment that implies that we are concerned today with the financial expenses. We know we have opportunities and we're working strongly to capture them as fast as possible. Even with the platform change in case of Realize, there's nothing detaching from inflation and we see an important reduction opportunity. The others, Daniel sometimes gives us a range of how much comes from reduction and scale. It's important. It's difficult. Range and reduction. The part of scale comes from scale. We're prepared to grow. If the growth comes on the lower range, it comes from reduction. No doubt will bring a volumetry SG&A and total expenses of Realize to a healthier level than we see today. no doubt will bring a volumetry sg&a and total expenses of realize to a healthier level than we see today It's important to remember, even in the years where we are a little bit more compressed in terms of expenses, we are growing aligned to the inflation. it's important to remember even in the years where we are a little bit more compressed in terms of expenses we are growing aligned to the inflation So there's no relevant detachment that implies that we are concerned today with the financial expenses. so there's no relevant detachment that implies that we are concerned today with the financial expenses We know we have opportunities and we're working strongly to capture them as fast as possible. we know we have opportunities and we're working strongly to capture them as fast as possible Even with the platform change in case of Realize, there's nothing detaching from inflation and we see an important reduction opportunity. even with the platform change in case of realize there's nothing detaching from inflation and we see an important reduction opportunity The others, Daniel sometimes gives us a range of how much comes from reduction and scale. the others daniel sometimes gives us a range of how much comes from reduction and scale It's important. it's important It's difficult. it's difficult Range and reduction. range and reduction The part of scale comes from scale. the part of scale comes from scale We're prepared to grow. we're prepared to grow If the growth comes on the lower range, it comes from reduction. if the growth comes on the lower range it comes from reduction If it comes on the upper range, it's more scale. If it comes on the upper range, it's more scale. if it comes on the upper range it's more scale

Speaker 4: I have a quick question. Good. I'm Pedro Pinto from BBI. By the way, I want to say thank you for your presentation. Clear, but building upon his last question in terms of expenses, expenditures, let's look at it from a different perspective. You know, Daniel said earlier, you know, we're talking about capital distribution. You know, let's talk about the, you know, sometimes growth may not reach like 9% or 13%. There's several reasons, you know, there might be several reasons for it. And so our expenses will grow way above the revenues. How can you codify that, you know, the expenses? It's very much related to what he said. I would like to understand this a little bit better. You know, we have like downturn cycles, you know, it's so cyclical. I have a quick question. i have a quick question Good. good I'm Pedro Pinto from BBI. i'm pedro pinto from bbi By the way, I want to say thank you for your presentation. by the way i want to say thank you for your presentation Clear, but building upon his last question in terms of expenses, expenditures, let's look at it from a different perspective. clear but building upon his last question in terms of expenses expenditures let's look at it from a different perspective You know, Daniel said earlier, you know, we're talking about capital distribution. you know daniel said earlier you know we're talking about capital distribution You know, let's talk about the, you know, sometimes growth may not reach like 9% or 13%. you know let's talk about the you know sometimes growth may not reach like 9% or 13% There's several reasons, you know, there might be several reasons for it. there's several reasons you know there might be several reasons for it And so our expenses will grow way above the revenues. and so our expenses will grow way above the revenues How can you codify that, you know, the expenses? how can you codify that you know the expenses It's very much related to what he said. it's very much related to what he said I would like to understand this a little bit better. i would like to understand this a little bit better You know, we have like downturn cycles, you know, it's so cyclical. you know we have like downturn cycles you know it's so cyclical Would it be possible still to be efficient? And our second question is about the, you know, Aires mentioned earlier about supply chain. You know, supply chain was really big over these past year, a few years, but today the capital deployed has converged into these 20% of ROIC. Out of these 20%, I would like to understand a little bit about your stock demand. How much flow do you have there? Like, so these are the two questions that I had. So I'm going to start. Daniel, you can start. Would it be possible still to be efficient? would it be possible still to be efficient And our second question is about the, you know, Aires mentioned earlier about supply chain. and our second question is about the you know aires mentioned earlier about supply chain You know, supply chain was really big over these past year, a few years, but today the capital deployed has converged into these 20% of ROIC. you know supply chain was really big over these past year a few years but today the capital deployed has converged into these 20% of roic Out of these 20%, I would like to understand a little bit about your stock demand. out of these 20% i would like to understand a little bit about your stock demand How much flow do you have there? how much flow do you have there Like, so these are the two questions that I had. like so these are the two questions that i had So I'm going to start. so i'm going to start Daniel, you can start. daniel you can start

Speaker 14: Answering the very first part. Yes. Even if there's fluctuation in terms of demands. Yeah. That's why our metrics, we use trends as indicators, but we have the potential to reduce expenses over revenues, even if it's difficult for us. Answering the very first part. answering the very first part Yes. yes Even if there's fluctuation in terms of demands. even if there's fluctuation in terms of demands Yeah. yeah That's why our metrics, we use trends as indicators, but we have the potential to reduce expenses over revenues, even if it's difficult for us. that's why our metrics we use trends as indicators but we have the potential to reduce expenses over revenues even if it's difficult for us You know, we anticipate our scenarios, but if that happens, also there will be situations and conditions to take this path. We have like more initiatives for reduction. But for your second answer, let's talk about expenses. What I think is important, Pedro, is if we do not grow as much as we expect, we know that retail, part of it is variable, you know. So basically, I always talk to Fabio about it. And this is discipline, right? If you have volumetrics, obviously it will adjust your structure to the volumes you have. Obviously, part of your expenses are fixed, but they're fixed. They're not untouchable. So depending on the expectations you have, if it's a cyclical thing or something that will take longer , given some macroeconomic perspectives, you'll have to make decisions to adjust it. You know, we anticipate our scenarios, but if that happens, also there will be situations and conditions to take this path. you know we anticipate our scenarios but if that happens also there will be situations and conditions to take this path We have like more initiatives for reduction. we have like more initiatives for reduction But for your second answer, let's talk about expenses. but for your second answer let's talk about expenses What I think is important, Pedro, is if we do not grow as much as we expect, we know that retail, part of it is variable, you know. what i think is important pedro is if we do not grow as much as we expect we know that retail part of it is variable you know So basically, I always talk to Fabio about it. so basically i always talk to fabio about it And this is discipline, right? and this is discipline right If you have volumetrics, obviously it will adjust your structure to the volumes you have. if you have volumetrics obviously it will adjust your structure to the volumes you have Obviously, part of your expenses are fixed, but they're fixed. obviously part of your expenses are fixed but they're fixed They're not untouchable. they're not untouchable So depending on the expectations you have, if it's a cyclical thing or something that will take longer , given some macro economic perspectives, you'll have to make decisions to adjust it. so depending on the expectations you have, if it's a cyclical thing or something that will take longer , given some macro economic perspectives you'll have to make decisions to adjust it But I think the important point here to remember is, I think I mentioned it, the company had the intentions to increase expenses. Why? Why did we increase it? Because, you know, we were a company that operated, 97% of our sales came from physical retail, and we needed to put together a digital structure for us to succeed and be competitive in an environment which is completely different from the environment of five years ago. It's important to talk about these intentions. You know, sometimes we treat these expenses as something we're not, maybe we might think we're not careful in our management. No, we were. You know, we wanted to highlight new structures that we have created, our new capabilities that we put in the game. And obviously, yeah, they added pressure to our results. We know that. But I think the important point here to remember is, I think I mentioned it, the company had the intentions to increase expenses. but i think the important point here to remember is i think i mentioned it the company had the intentions to increase expenses Why? why Why did we increase it? why did we increase it Because, you know, we were a company that operated, 97% of our sales came from physical retail, and we needed to put together a digital structure for us to succeed and be competitive in an environment which is completely different from the environment of five years ago. because you know we were a company that operated 97% of our sales came from physical retail and we needed to put together a digital structure for us to succeed and be competitive in an environment which is completely different from the environment of five years ago It's important to talk about these intentions. it's important to talk about these intentions You know, sometimes we treat these expenses as something we're not, maybe we might think we're not careful in our management. you know sometimes we treat these expenses as something we're not maybe we might think we're not careful in our management No, we were. no we were You know, we wanted to highlight new structures that we have created, our new capabilities that we put in the game. you know we wanted to highlight new structures that we have created our new capabilities that we put in the game And obviously, yeah, they added pressure to our results. and obviously yeah they added pressure to our results We know that. we know that But at the same time, they allow us, you know, these, you see these results from these past two years show that, you know, have put together a structure that allows us to continue growing and grow even more. Our distribution center, you know, addresses the need of, let's say, the coming years. It can support the demand of the next five years. Several of these structures of today have allowed us to get into the digital sphere. 15% is much higher than our competitors. And as I said earlier, we managed to reduce the cost of operation of our digital platforms. We expect that the power of the continue growing. Yeah, we are ready for it. We are ready to generate growth and address this growth without increasing expenses. But obviously, there's efficiency in the game. Paula mentioned the example of Realize, but we also have that in retail. But at the same time, they allow us, you know, these, you see these results from these past two years show that, you know, have put together a structure that allows us to continue growing and grow even more. but at the same time they allow us you know these you see these results from these past two years show that you know have put together a structure that allows us to continue growing and grow even more Our distribution center, you know, addresses the need of, let's say, the coming years. our distribution center you know addresses the need of let's say the coming years It can support the demand of the next five years. it can support the demand of the next five years Several of these structures of today have allowed us to get into the digital sphere. 15% is much higher than our competitors. several of these structures of today have allowed us to get into the digital sphere 15% is much higher than our competitors And as I said earlier, we managed to reduce the cost of operation of our digital platforms. and as i said earlier we managed to reduce the cost of operation of our digital platforms We expect that the power of the continue growing. we expect that the power of the continue growing Yeah, we are ready for it. yeah we are ready for it We are ready to generate growth and address this growth without increasing expenses. we are ready to generate growth and address this growth without increasing expenses But obviously, there's efficiency in the game. but obviously there's efficiency in the game Paula mentioned the example of Realize, but we also have that in retail. paula mentioned the example of realize but we also have that in retail You know, out of all the structures and the forms of operations that we have, we know there are many things we can explore. There are internal discussions to execute and carry out these plans. At the same time, you know, we can rely on growth depending on us, but also depending on the macro perspectives. We can also have internal discussions to generate efficiency, and this is stated in this roadmap. It's within the mission, you know, from 2.5%-3.5% of leverage for the coming five years. You also mentioned like stock flow. We want to reach like four times. We want to evolve, you know, our stock. We have been very successful in that. You know, all the supply things related to supply chain that I just mentioned will allow us to operate our stock more efficiently. The idea is to profit even more. You know, out of all the structures and the forms of operations that we have, we know there are many things we can explore. you know out of all the structures and the forms of operations that we have we know there are many things we can explore There are internal discussions to execute and carry out these plans. there are internal discussions to execute and carry out these plans At the same time, you know, we can rely on growth depending on us, but also depending on the macro perspectives. at the same time you know we can rely on growth depending on us but also depending on the macro perspectives We can also have internal discussions to generate efficiency, and this is stated in this roadmap. we can also have internal discussions to generate efficiency and this is stated in this roadmap It's within the mission, you know, from 2.5%-3.5% of leverage for the coming five years. it's within the mission you know from 2.5%-3.5% of leverage for the coming five years You also mentioned like stock flow. you also mentioned like stock flow We want to reach like four times. we want to reach like four times We want to evolve, you know, our stock. we want to evolve you know our stock We have been very successful in that. we have been very successful in that You know, all the supply things related to supply chain that I just mentioned will allow us to operate our stock more efficiently. you know all the supply things related to supply chain that i just mentioned will allow us to operate our stock more efficiently The idea is to profit even more. the idea is to profit even more You know, our benchmark shows that we have like a 4% per year, but we're going to try to take that path. Thank you, Pedro. You know, our benchmark shows that we have like a 4% per year, but we're going to try to take that path. you know our benchmark shows that we have like a 4% per year but we're going to try to take that path Thank you, Pedro. thank you pedro Good morning. I'm from BBI. Daniel, I got a question. You know, some people ask me, just want to make it clear. From 50%-80% of payout up to 2030, does that include buyback and JCP? Good morning. good morning I'm from BBI. i'm from bbi Daniel, I got a question. daniel i got a question You know, some people ask me, just want to make it clear. you know some people ask me just want to make it clear From 50%-80% of payout up to 2030, does that include buyback and JCP? from 50%-80% of payout up to 2030 does that include buyback and jcp Yeah, it does. That's why I didn't call it payout. We call it profit sharing and so I got a question. If you simply replicate JCP figures that you mentioned earlier this morning, like BRL 800 million, the approximate profit for next year will be BRL 600 million. But it will be, if you look at JCP alone, we're talking about like almost 50% of your payout. You must use that to maximize the results. So the implied reading is, you know, the 2025 buyback will not be as relevant given that with the JCP alone, you get like 50% of your payout. Does that make sense? Am I right? Yeah, it does. yeah it does That's why I didn't call it payout. that's why i didn't call it payout We call it profit sharing and so I got a question. we call it profit sharing and so i got a question If you simply replicate JCP figures that you mentioned earlier this morning, like BRL 800 million, the approximate profit for next year will be BRL 600 million. if you simply replicate jcp figures that you mentioned earlier this morning like brl 800 million the approximate profit for next year will be brl 600 million But it will be, if you look at JCP alone, we're talking about like almost 50% of your payout. but it will be if you look at jcp alone we're talking about like almost 50% of your payout You must use that to maximize the results. you must use that to maximize the results So the implied reading is, you know, the 2025 buyback will not be as relevant given that with the JCP alone, you get like 50% of your payout. so the implied reading is you know the 2025 buyback will not be as relevant given that with the jcp alone you get like 50% of your payout Does that make sense? does that make sense Am I right? am i right Your calculation, yeah. But Fabio mentioned earlier, we still have the Q4 results whose reserves will be available in February or March. I don't know. We're going to double-check it, but you also have the reserves that you'll generate at the end of the year. And so Q4 is a very important year for the generation of reserves. And as I said earlier, JCP, it consumes like a very specific base in the surpluses. You know, we can use to execute the purchase plan roadmap, except unforeseen conditions, of course. The purchase plan, we got a history, you know, in our company. We have been very successful. Your calculation, yeah. your calculation yeah But Fabio mentioned earlier, we still have the Q4 results whose reserves will be available in February or March. but fabio mentioned earlier we still have the q4 results whose reserves will be available in february or march I don't know. i don't know We're going to double-check it, but you also have the reserves that you'll generate at the end of the year. we're going to double-check it but you also have the reserves that you'll generate at the end of the year And so Q4 is a very important year for the generation of reserves. and so q4 is a very important year for the generation of reserves And as I said earlier, JCP, it consumes like a very specific base in the surpluses. and as i said earlier jcp it consumes like a very specific base in the surpluses You know, we can use to execute the purchase plan roadmap, except unforeseen conditions, of course. you know we can use to execute the purchase plan roadmap except unforeseen conditions of course The purchase plan, we got a history, you know, in our company. the purchase plan we got a history you know in our company We have been very successful. we have been very successful But if there's like an external factor that makes us refine it or revise it or take a look at it, we are going to do it. Why not? Due to external factors. But the principles is we're going to repurchase the surpluses and you have 18 months to carry it out, including the years reserves up until those that will be available in the 2027 T1 reference to the 2026 T4. So we carried out two in their full capacity. And so we announced the second and we executed like 94% of it. And as we were almost done, you know, I had a chance to, you know, we announced the fourth that we want to carry out in 18 months. The third one, you know, basically the first one, we did it in up to 10 months, like almost 100%. But if there's like an external factor that makes us refine it or revise it or take a look at it, we are going to do it. but if there's like an external factor that makes us refine it or revise it or take a look at it we are going to do it Why not? why not Due to external factors. due to external factors But the principles is we're going to repurchase the surpluses and you have 18 months to carry it out, including the years reserves up until those that will be available in the 2027 T1 reference to the 2026 T4. but the principles is we're going to repurchase the surpluses and you have 18 months to carry it out including the years reserves up until those that will be available in the 2027 t1 reference to the 2026 t4 So we carried out two in their full capacity. so we carried out two in their full capacity And so we announced the second and we executed like 94% of it. and so we announced the second and we executed like 94% of it And as we were almost done, you know, I had a chance to, you know, we announced the fourth that we want to carry out in 18 months. and as we were almost done you know i had a chance to you know we announced the fourth that we want to carry out in 18 months The third one, you know, basically the first one, we did it in up to 10 months, like almost 100%. the third one you know basically the first one we did it in up to 10 months like almost 100% So we are the fourth period of 18 months. And as the reserves come in, the priority will be on the IOC. And then depending on the stocks and shares, we will try to repurchase. And this is very available to our stakeholders. And question from these 50%-80% by up to 2030, is it like is it a linear average, linear figures from 2026 up to 2030? Or maybe it could be bigger in 2026 and lower in 2030. Well, I would say that in these past few years, we reached over 100% in its entirety. You know, maybe every year it'll be like from 50%-80%. Obviously, it's an estimate, you know, with our current plans, current roadmap. You know, there is a plan that will generate a lot more value, some for stakeholders, shareholders, you know. So we are the fourth period of 18 months. so we are the fourth period of 18 months And as the reserves come in, the priority will be on the IOC. and as the reserves come in the priority will be on the ioc And then depending on the stocks and shares, we will try to repurchase. and then depending on the stocks and shares we will try to repurchase And this is very available to our stakeholders. and this is very available to our stakeholders And question from these 50%-80% by up to 2030, is it like is it a linear average, linear figures from 2026 up to 2030? and question from these 50%-80% by up to 2030 is it like is it a linear average linear figures from 2026 up to 2030 Or maybe it could be bigger in 2026 and lower in 2030. or maybe it could be bigger in 2026 and lower in 2030 Well, I would say that in these past few years, we reached over 100% in its entirety. well i would say that in these past few years we reached over 100% in its entirety You know, maybe every year it'll be like from 50%-80%. you know maybe every year it'll be like from 50%-80% Obviously, it's an estimate, you know, with our current plans, current roadmap. obviously it's an estimate you know with our current plans current roadmap You know, there is a plan that will generate a lot more value, some for stakeholders, shareholders, you know. you know there is a plan that will generate a lot more value some for stakeholders shareholders you know So the trend is we it should be within this range. So the trend is we it should be within this range. so the trend is we it should be within this range A second question, it's related to the guidance. Today's guidance is, you know, with the new long-term tax relief incentive plan. What are the most important metrics you've been using for this long-term incentive plan? And what about the guidance that you're using today? Do they already have an impact on the long-term plan? A second question, it's related to the guidance. a second question it's related to the guidance Today's guidance is, you know, with the new long-term tax relief incentive plan. today's guidance is you know with the new long-term tax relief incentive plan What are the most important metrics you've been using for this long-term incentive plan? what are the most important metrics you've been using for this long-term incentive plan And what about the guidance that you're using today? and what about the guidance that you're using today Do they already have an impact on the long-term plan? do they already have an impact on the long-term plan I'll do the second part. Yes, they have an impact. Absolutely. I think our long-term and long-term remuneration are in line with the plan, with the roadmap. We can, you know, as we said earlier, you know, we're working on what we think is challenging, but possible, of course. We're working on a plan, roadmap that generates value to our stakeholders, and they must be in line. What about the metrics? I'll do the second part. i'll do the second part Yes, they have an impact. yes they have an impact Absolutely. absolutely I think our long-term and long-term remuneration are in line with the plan, with the roadmap. i think our long-term and long-term remuneration are in line with the plan with the roadmap We can, you know, as we said earlier, you know, we're working on what we think is challenging, but possible, of course. we can you know as we said earlier you know we're working on what we think is challenging but possible of course We're working on a plan, roadmap that generates value to our stakeholders, and they must be in line. we're working on a plan roadmap that generates value to our stakeholders and they must be in line What about the metrics? what about the metrics The metrics, you know, Regina mentioned earlier, we have three metrics. Let's talk about the long-term plan. TSR, relative, relative TSR, ROIC, and the third one is Earnings per share. If you think about in the period of three years, the strategic plan we have put together today and the metrics that are going to be used for them, they are all integrated somehow. The goals we set, obviously, it's going to be a long journey. They're going to be part of the metrics. They will be presented later to the board to be approved and analyzed. You know, so it's going to be making a decision in the beginning of the year for this three-year cycle. Every year, obviously, we have new metrics and looking at what just happened and with new estimations of what is coming next. The metrics, you know, Regina mentioned earlier, we have three metrics. the metrics you know regina mentioned earlier we have three metrics Let's talk about the long-term plan. let's talk about the long-term plan TSR, relative, relative TSR, ROIC, and the third one is Earnings per share. tsr relative relative tsr roic and the third one is earnings per share If you think about in the period of three years, the strategic plan we have put together today and the metrics that are going to be used for them, they are all integrated somehow. if you think about in the period of three years the strategic plan we have put together today and the metrics that are going to be used for them they are all integrated somehow The goals we set, obviously, it's going to be a long journey. the goals we set obviously it's going to be a long journey They're going to be part of the metrics. they're going to be part of the metrics They will be presented later to the board to be approved and analyzed. they will be presented later to the board to be approved and analyzed You know, so it's going to be making a decision in the beginning of the year for this three-year cycle. you know so it's going to be making a decision in the beginning of the year for this three-year cycle Every year, obviously, we have new metrics and looking at what just happened and with new estimations of what is coming next. every year obviously we have new metrics and looking at what just happened and with new estimations of what is coming next Sorry, one last question. Sorry, one last question. sorry one last question In practical terms, the three-year CLP. So there is one of the metrics that you mentioned is that you assume in place explicitly a CAGR of per share of 9% and a margin of from 18%-20%. Is that incorporated into it? In practical terms, the three-year CLP. in practical terms the three-year clp So there is one of the metrics that you mentioned is that you assume in place explicitly a CAGR of per share of 9% and a margin of from 18%-20%. so there is one of the metrics that you mentioned is that you assume in place explicitly a cagr of per share of 9% and a margin of from 18%-20% Is that incorporated into it? is that incorporated into it Yes, it is. It's embedded into it. Yes, it is. yes it is It's embedded into it. it's embedded into it I got a question. Irma, she's online. She's from Goldman Sachs. I got a question. i got a question Irma, she's online. irma she's online She's from Goldman Sachs. she's from goldman sachs Here we have the examples of Youcom and the trust we have in the concept through the opening plan. We believe the time to scale of a new concept will be shorter if we believe so. What are the takeaways in this sense? I just got a second question, which is not related. I'm going to read it to you. Could you give us more details about whether we should think that productivity growth in our plan would be more driven by volume or price? Here we have the examples of Youcom and the trust we have in the concept through the opening plan. here we have the examples of youcom and the trust we have in the concept through the opening plan We believe the time to scale of a new concept will be shorter if we believe so. we believe the time to scale of a new concept will be shorter if we believe so What are the takeaways in this sense? what are the takeaways in this sense I just got a second question, which is not related. i just got a second question which is not related I'm going to read it to you. i'm going to read it to you Could you give us more details about whether we should think that productivity growth in our plan would be more driven by volume or price? could you give us more details about whether we should think that productivity growth in our plan would be more driven by volume or price

Speaker 9: I'll answer the first. You'll answer the second. Thank you for your question, Irma. I would say that, yeah, we learned a lot. You know, if you look at the Youcom, you know, we presented to you earlier, but only gave a presentation on it. It officially came to life in 2013, both Youcom and Camicado, which we purchased in 2011. You know, I think those were the very first takeaways from the new concepts. You know, we understand the way we see it is a growth leverage, very, very important growth leverage. We were learning, we're trying things out. We tried a lot, and then we scaled. And Barone said that Youcom not only is it an example of a brand, a powerful brand. So it's Camicado, of course, but they show that our platform is ready for new concepts and new opportunities that could be scalable. I'll answer the first. i'll answer the first You'll answer the second. you'll answer the second Thank you for your question, Irma. thank you for your question irma I would say that, yeah, we learned a lot. i would say that yeah we learned a lot You know, if you look at the Youcom, you know, we presented to you earlier, but only gave a presentation on it. you know if you look at the youcom you know we presented to you earlier but only gave a presentation on it It officially came to life in 2013, both Youcom and Camicado, which we purchased in 2011. it officially came to life in 2013 both youcom and camicado which we purchased in 2011 You know, I think those were the very first takeaways from the new concepts. you know i think those were the very first takeaways from the new concepts You know, we understand the way we see it is a growth leverage, very, very important growth leverage. you know we understand the way we see it is a growth leverage very very important growth leverage We were learning, we're trying things out. we were learning we're trying things out We tried a lot, and then we scaled. we tried a lot and then we scaled And Barone said that Youcom not only is it an example of a brand, a powerful brand. and barone said that youcom not only is it an example of a brand a powerful brand So it's Camicado, of course, but they show that our platform is ready for new concepts and new opportunities that could be scalable. so it's camicado of course but they show that our platform is ready for new concepts and new opportunities that could be scalable So it's in the beginning, we learned a lot. We tried things out. We did things we never had done before. Of course, from this moment on, time to be shorter. We're going to have like shorter time. We learned a lot. We are ready. We learned a lot from both to try them out, to scale them. And in the future, a new concept will be, you know, a new concept will be in place and grow even more. Price and volume, right? You know, there is a component, a real price component, which would be the inflation, and the rest would be like a combination of volume and mix. On the one hand, we know there's volume in the game, but several initiatives that we are proposing, you know, we could improve our sales mix. It's the value per part, per piece, per item. So it's in the beginning, we learned a lot. so it's in the beginning we learned a lot We tried things out. we tried things out We did things we never had done before. we did things we never had done before Of course, from this moment on, time to be shorter. of course from this moment on time to be shorter We're going to have like shorter time. we're going to have like shorter time We learned a lot. we learned a lot We are ready. we are ready We learned a lot from both to try them out, to scale them. we learned a lot from both to try them out to scale them And in the future, a new concept will be, you know, a new concept will be in place and grow even more. and in the future a new concept will be you know a new concept will be in place and grow even more Price and volume, right? price and volume right You know, there is a component, a real price component, which would be the inflation, and the rest would be like a combination of volume and mix. you know there is a component a real price component which would be the inflation and the rest would be like a combination of volume and mix On the one hand, we know there's volume in the game, but several initiatives that we are proposing, you know, we could improve our sales mix. on the one hand we know there's volume in the game but several initiatives that we are proposing you know we could improve our sales mix It's the value per part, per piece, per item. it's the value per part per piece per item So it's a combination of both. So it's a combination of both. so it's a combination of both

Speaker 11: Now, I'm Dani from XP. I have a follow-up on the margin dynamics. I don't think you mentioned about the gross margin and also supply, you know, the data that Fabi has shared. It showed that the model, you know, there's a reduction in the market down. But if you could give us some more about the gross margin, I know it has evolved. It grew a lot, but I would like to hear from you guys. And my additional question is about Realize. You say, I know, gave me the impression that, okay, you're focusing on the ones, but you brought something related to co-branding, like more flexibility to offer to us. Why is it? I see you brought the data to Fabi. Now, I'm Dani from XP. now i'm dani from xp I have a follow-up on the margin dynamics. i have a follow-up on the margin dynamics I don't think you mentioned about the gross margin and also supply, you know, the data that Fabi has shared. i don't think you mentioned about the gross margin and also supply you know the data that fabi has shared It showed that the model, you know, there's a reduction in the market down. it showed that the model you know there's a reduction in the market down But if you could give us some more about the gross margin, I know it has evolved. but if you could give us some more about the gross margin i know it has evolved It grew a lot, but I would like to hear from you guys. it grew a lot but i would like to hear from you guys And my additional question is about Realize. and my additional question is about realize You say, I know, gave me the impression that, okay, you're focusing on the ones, but you brought something related to co-branding, like more flexibility to offer to us. you say i know gave me the impression that okay you're focusing on the ones but you brought something related to co-branding like more flexibility to offer to us Why is it? why is it I see you brought the data to Fabi. i see you brought the data to fabi You showed them over the data, but if you could have the environment, it's to be better explored, and then can you connect it with the credit appetite? You know, we're obviously talking about volatility, but a lower interest rate. How do you see that? What would make you increase your appetite? You showed them over the data, but if you could have the environment, it's to be better explored, and then can you connect it with the credit appetite? you showed them over the data but if you could have the environment it's to be better explored and then can you connect it with the credit appetite You know, we're obviously talking about volatility, but a lower interest rate. you know we're obviously talking about volatility but a lower interest rate How do you see that? how do you see that What would make you increase your appetite? what would make you increase your appetite

Speaker 14: Thank you. Margin, you cannot talk about margin without talking about Realize. I think in terms of margin, we have been talking a lot about it. We see great potential for a slight growth and a higher and an elevated point, of course, with all the gains of this model that allow it. We could have more stock. We have gained a lot from it, but we see opportunities here. You know, we try to show you more data on the things that we didn't talk much about before. Thank you. thank you Margin, you cannot talk about margin without talking about Realize. margin you cannot talk about margin without talking about realize I think in terms of margin, we have been talking a lot about it. i think in terms of margin we have been talking a lot about it We see great potential for a slight growth and a higher and an elevated point, of course, with all the gains of this model that allow it. we see great potential for a slight growth and a higher and an elevated point of course with all the gains of this model that allow it We could have more stock. we could have more stock We have gained a lot from it, but we see opportunities here. we have gained a lot from it but we see opportunities here You know, we try to show you more data on the things that we didn't talk much about before. you know we try to show you more data on the things that we didn't talk much about before I talked about profitability, which results from the reduction in expenses and commitment, but also comes from the gross margin growth. I think this is a kind of a growth that is slight, you know, but we can grow even more. About as for Realize, of course, thank you for your question. Very smart. As we said earlier, you know, we have a new product. It's important that you guys understand the dynamics in your operation. Today, we have a portfolio that is concentrated on a co-branded card. You know, customers have a limit to spend outside of the company and in the company, but from 2020 up until now, grand concession of cards is very much focused on the private label. Why is that? It's important to share it with you that private label is unique. You know, it's very important for credit modeling. I talked about profitability, which results from the reduction in expenses and commitment, but also comes from the gross margin growth. i talked about profitability which results from the reduction in expenses and commitment but also comes from the gross margin growth I think this is a kind of a growth that is slight, you know, but we can grow even more. i think this is a kind of a growth that is slight you know but we can grow even more About as for Realize, of course, thank you for your question. about as for realize of course thank you for your question Very smart. very smart As we said earlier, you know, we have a new product. as we said earlier you know we have a new product It's important that you guys understand the dynamics in your operation. it's important that you guys understand the dynamics in your operation Today, we have a portfolio that is concentrated on a co-branded card. today we have a portfolio that is concentrated on a co-branded card You know, customers have a limit to spend outside of the company and in the company, but from 2020 up until now, grand concession of cards is very much focused on the private label. you know customers have a limit to spend outside of the company and in the company but from 2020 up until now grand concession of cards is very much focused on the private label Why is that? why is that It's important to share it with you that private label is unique. it's important to share it with you that private label is unique You know, it's very important for credit modeling. you know it's very important for credit modeling You know, it allows client customers to purchase things on the ecosystem and I can monitor their credit behavior. So today, out of 10 cards that we give in the store, this has been a while, you know, a reality for a while. So eight of them are private label. So for some other cases, you know, we have some upper middle-class customers. You know, they also have like a Visa or a Mastercard card. You know, he's got those labels, but they can operate it either only as a private label. There's going to be a limit, which is independent for on-as consumption, and they'll have the prerogative to enable it at any time and increase the limit. So that's innovative in the retail sector because it reduces friction. Today, when I give a client customer a private label, you know, we're going to it's a lot. You know, it allows client customers to purchase things on the ecosystem and I can monitor their credit behavior. you know it allows client customers to purchase things on the ecosystem and i can monitor their credit behavior So today, out of 10 cards that we give in the store, this has been a while, you know, a reality for a while. so today out of 10 cards that we give in the store this has been a while you know a reality for a while So eight of them are private label. so eight of them are private label So for some other cases, you know, we have some upper middle-class customers. so for some other cases you know we have some upper middle-class customers You know, they also have like a Visa or a Mastercard card. you know they also have like a visa or a mastercard card You know, he's got those labels, but they can operate it either only as a private label. you know he's got those labels but they can operate it either only as a private label There's going to be a limit, which is independent for on- as consumption, and they'll have the prerogative to enable it at any time and increase the limit. there's going to be a limit which is independent for on- as consumption and they'll have the prerogative to enable it at any time and increase the limit So that's innovative in the retail sector because it reduces friction. so that's innovative in the retail sector because it reduces friction Today, when I give a client customer a private label, you know, we're going to it's a lot. today when i give a client customer a private label you know we're going to it's a lot We're going to have new use plastic. There's an embossing cost. In terms of DNA, it's very good. For risk management, it's got the possibility, you know, gives me the possibility to give customers private label with the on us limit enabled. As I see their credit behavior, I can open and I can expand this on us limit. You know, it's very, very important both for the value proposition generation, but it also gives me the prerogative of knowing their behavior, you know, in terms of consumption, bringing those insights to my credit model and also showing important elements for fashion consumption. This will allow us to have a very adequate operation connecting retail and financial services. We're going to have new use plastic. we're going to have new use plastic There's an embossing cost. there's an embossing cost In terms of DNA, it's very good. in terms of dna it's very good For risk management, it's got the possibility, you know, gives me the possibility to give customers private label with the on us limit enabled. for risk management it's got the possibility you know gives me the possibility to give customers private label with the on us limit enabled As I see their credit behavior, I can open and I can expand this on us limit. as i see their credit behavior i can open and i can expand this on us limit You know, it's very, very important both for the value proposition generation, but it also gives me the prerogative of knowing their behavior, you know, in terms of consumption, bringing those insights to my credit model and also showing important elements for fashion consumption. you know it's very very important both for the value proposition generation but it also gives me the prerogative of knowing their behavior you know in terms of consumption bringing those insights to my credit model and also showing important elements for fashion consumption This will allow us to have a very adequate operation connecting retail and financial services. this will allow us to have a very adequate operation connecting retail and financial services As for risk appetite, we have been working on a credit policy, which is being able to support the deal with things very effectively. You know, we remain like 28% or 29% of the sales, and we see there are opportunities here to expand this credit as the macro environment allows. You know, financial institutions, we are here to have a good risk management. We are ready for it. We have capital. We have an adequate model. It will depend on how we will move on, and remember, we have more volatility next year. We are very consistent in terms of model, and with this new product, we are even ready to support the sales expansion. As for risk appetite, we have been working on a credit policy, which is being able to support the deal with things very effectively. as for risk appetite we have been working on a credit policy which is being able to support the deal with things very effectively You know, we remain like 28% or 29% of the sales, and we see there are opportunities here to expand this credit as the macro environment allows. you know we remain like 28% or 29% of the sales and we see there are opportunities here to expand this credit as the macro environment allows You know, financial institutions, we are here to have a good risk management. you know financial institutions we are here to have a good risk management We are ready for it. we are ready for it We have capital. we have capital We have an adequate model. we have an adequate model It will depend on how we will move on, and remember, we have more volatility next year. it will depend on how we will move on and remember we have more volatility next year We are very consistent in terms of model, and with this new product, we are even ready to support the sales expansion. we are very consistent in terms of model and with this new product we are even ready to support the sales expansion Thank you, Dani. Congratulations for the event. I have three questions. Can you speak a bit louder? Joseph, J.P. Morgan, thank you for the event. Congratulations for the event. Three questions. Thank you, Dani. thank you dani Congratulations for the event. congratulations for the event I have three questions. i have three questions Can you speak a bit louder? can you speak a bit louder Joseph, J.P. joseph j.p Morgan, thank you for the event. morgan thank you for the event Congratulations for the event. congratulations for the event Three questions. three questions Looking at the last year and a half with the slide that you presented to us, future growth, the usual for guidance, we have implied a true growth of 4%-5% without distortion, seeing that the incremental area of store is smaller than we saw before due to the profile. What I wanted to explore with you, looking at the tooling of CD, we're in more or less one year with CD almost full power. Looking at the level of efficiency, where do you imagine that you are? You talk about improvement of three points, availability of product at store. To where can we bring this to understand what it brings in terms of productivity? Asking to Fabi, she talked about freshness, 23% between the collection, where we can do more when we look at the climate issue. Looking at the last year and a half with the slide that you presented to us, future growth, the usual for guidance, we have implied a true growth of 4%-5% without distortion, seeing that the incremental area of store is smaller than we saw before due to the profile. looking at the last year and a half with the slide that you presented to us future growth the usual for guidance we have implied a true growth of 4%-5% without distortion seeing that the incremental area of store is smaller than we saw before due to the profile What I wanted to explore with you, looking at the tooling of CD, we're in more or less one year with CD almost full power. what i wanted to explore with you looking at the tooling of cd we're in more or less one year with cd almost full power Looking at the level of efficiency, where do you imagine that you are? looking at the level of efficiency where do you imagine that you are You talk about improvement of three points, availability of product at store. you talk about improvement of three points availability of product at store To where can we bring this to understand what it brings in terms of productivity? to where can we bring this to understand what it brings in terms of productivity Asking to Fabi, she talked about freshness, 23% between the collection, where we can do more when we look at the climate issue. asking to fabi she talked about freshness 23% between the collection where we can do more when we look at the climate issue It wasn't an issue as it has been in the last two years. You have an algorithm evolution. What failed? Do we have the comfort that in the next five years, we have 9%-13% growth? It was a consensus. Maybe it's one point, two points below your guidance with similar expansion. It wasn't an issue as it has been in the last two years. it wasn't an issue as it has been in the last two years You have an algorithm evolution. you have an algorithm evolution What failed? what failed Do we have the comfort that in the next five years, we have 9%-13% growth? do we have the comfort that in the next five years we have 9%-13% growth It was a consensus. it was a consensus Maybe it's one point, two points below your guidance with similar expansion. maybe it's one point two points below your guidance with similar expansion Thank you for your questions. Would like to use the presence of the executives here. I at least can answer the first question about productivity, distribution center, Fabi. You can talk about freshness, responsiveness to climate issues. Thank you for your questions. thank you for your questions Would like to use the presence of the executives here. would like to use the presence of the executives here I at least can answer the first question about productivity, distribution center, Fabi. i at least can answer the first question about productivity distribution center fabi You can talk about freshness, responsiveness to climate issues. you can talk about freshness responsiveness to climate issues

Speaker 16: Okay. Thank you for your question. Do you hear me? Thank you for your question. It's important I mentioned the distribution center is operational since 2024. It was an important stage this year to finish the migration of e-commerce, and they're bringing it to the distribution center. Okay. okay Thank you for your question. thank you for your question Do you hear me? do you hear me Thank you for your question. thank you for your question It's important I mentioned the distribution center is operational since 2024. it's important i mentioned the distribution center is operational since 2024 It was an important stage this year to finish the migration of e-commerce, and they're bringing it to the distribution center. it was an important stage this year to finish the migration of e-commerce and they're bringing it to the distribution center When I look at the efficiency that we have in the supply to the store, the curve is very advanced and the productivity captured. The productivity of e-commerce this year is maturing. We concluded the migration. We're going to capture gains in productivity. The next year, you will see an improvement in the logistics on top of revenue. We'll be seeing next year with the evolution, with the maturation. This also happens with the sourcing, the supply part. We have a curve. I showed the integration of systems with the suppliers is 50% in our supply base domestically. We want to increase this. This will bring important gains also in productivity in the sense of suppliers and connection with development and collections. We don't have an exact number of what is the curve, but I can tell you that e-commerce, there's still maturity to be reached in the logistics operation. When I look at the efficiency that we have in the supply to the store, the curve is very advanced and the productivity captured. when i look at the efficiency that we have in the supply to the store the curve is very advanced and the productivity captured The productivity of e-commerce this year is maturing. the productivity of e-commerce this year is maturing We concluded the migration. we concluded the migration We're going to capture gains in productivity. we're going to capture gains in productivity The next year, you will see an improvement in the logistics on top of revenue. the next year you will see an improvement in the logistics on top of revenue We'll be seeing next year with the evolution, with the maturation. we'll be seeing next year with the evolution with the maturation This also happens with the sourcing, the supply part. this also happens with the sourcing the supply part We have a curve. we have a curve I showed the integration of systems with the suppliers is 50% in our supply base domestically. i showed the integration of systems with the suppliers is 50% in our supply base domestically We want to increase this. we want to increase this This will bring important gains also in productivity in the sense of suppliers and connection with development and collections. this will bring important gains also in productivity in the sense of suppliers and connection with development and collections We don't have an exact number of what is the curve, but I can tell you that e-commerce, there's still maturity to be reached in the logistics operation. we don't have an exact number of what is the curve but i can tell you that e-commerce there's still maturity to be reached in the logistics operation Sourcing also, we're going to involve the integration with the suppliers, gain in productivity in the domestic chain, supply chain. Thank you. Sourcing also, we're going to involve the integration with the suppliers, gain in productivity in the domestic chain, supply chain. sourcing also we're going to involve the integration with the suppliers gain in productivity in the domestic chain supply chain Thank you. thank you

Speaker 14: Yes. If we look in terms of capabilities, the company has it all installed. It has models, predictability, data. We have a system, functional system of building collections with methodology. It's very strong. I would take a bit care to say the error was ours in terms of the decision, not the capability or the condition. You talked about an error, and I want to go back to this. We made a decision to buy an excess in the winter. It's not always good. You don't deal with the next season always well. Looking at the short term, okay, it might have been an error in our minds, a loss in competitive advantage of Q3 with that quarter with the growth of competitors. Yes. yes If we look in terms of capabilities, the company has it all installed. if we look in terms of capabilities the company has it all installed It has models, predictability, data. it has models predictability data We have a system, functional system of building collections with methodology. we have a system functional system of building collections with methodology It's very strong. it's very strong I would take a bit care to say the error was ours in terms of the decision, not the capability or the condition. i would take a bit care to say the error was ours in terms of the decision not the capability or the condition You talked about an error, and I want to go back to this. you talked about an error and i want to go back to this We made a decision to buy an excess in the winter. we made a decision to buy an excess in the winter It's not always good. it's not always good You don't deal with the next season always well. you don't deal with the next season always well Looking at the short term, okay, it might have been an error in our minds, a loss in competitive advantage of Q3 with that quarter with the growth of competitors. looking at the short term okay it might have been an error in our minds a loss in competitive advantage of q3 with that quarter with the growth of competitors

Speaker 3: When you look at the full picture and I'll draw your attention, you look at the film or the movie of the evolution of stock, the construction that's engaged and the productivity that we leave open for the portfolio to really react in season. Capacity we have, we made a decision. You talked about a pain in the third quarter. You were talking about that, right? In the long term, we gained 20-25% of turnaround the last nine months. We increased 1.9 gross margin with one of the highest margins in the fashion retail, and there's still evolution that Fabio has left. We continue to project for this cycle, greater gain in turnaround, more reactivity. We depend on the productive capacity, but reducing the productive cycle is important and it we are having help. When you look at the full picture and I'll draw your attention, you look at the film or the movie of the evolution of stock, the construction that's engaged and the productivity that we leave open for the portfolio to really react in season. when you look at the full picture and i'll draw your attention you look at the film or the movie of the evolution of stock the construction that's engaged and the productivity that we leave open for the portfolio to really react in season Capacity we have, we made a decision. capacity we have we made a decision You talked about a pain in the third quarter. you talked about a pain in the third quarter You were talking about that, right? you were talking about that right In the long term, we gained 20-25% of turnaround the last nine months. in the long term we gained 20-25% of turnaround the last nine months We increased 1.9 gross margin with one of the highest margins in the fashion retail, and there's still evolution that Fabio has left. we increased 1.9 gross margin with one of the highest margins in the fashion retail and there's still evolution that fabio has left We continue to project for this cycle, greater gain in turnaround, more reactivity. we continue to project for this cycle greater gain in turnaround more reactivity We depend on the productive capacity, but reducing the productive cycle is important and it we are having help. we depend on the productive capacity but reducing the productive cycle is important and it we are having help We have cases where for 20 main ones, we have a relevant percentage of reactivity and of course, we will increment more. We gave the guidance of more or less leaving reactivity, but not only reactivity. The productive cycle we expect again in terms of speed that will bring us the flexibility. To add here, as Fabi said, well, it's a decision. When we make a decision, we evaluate risk and return. You can lose a bit of sales, but you gain in margin or gain in turnaround, as she said. Of course, maybe looking at today, we can risk more, gaining more sales. We have cases where for 20 main ones, we have a relevant percentage of reactivity and of course, we will increment more. we have cases where for 20 main ones we have a relevant percentage of reactivity and of course we will increment more We gave the guidance of more or less leaving reactivity, but not only reactivity. we gave the guidance of more or less leaving reactivity but not only reactivity The productive cycle we expect again in terms of speed that will bring us the flexibility. the productive cycle we expect again in terms of speed that will bring us the flexibility To add here, as Fabi said, well, it's a decision. to add here as fabi said well it's a decision When we make a decision, we evaluate risk and return. when we make a decision we evaluate risk and return You can lose a bit of sales, but you gain in margin or gain in turnaround, as she said. you can lose a bit of sales but you gain in margin or gain in turnaround as she said Of course, maybe looking at today, we can risk more, gaining more sales. of course maybe looking at today we can risk more gaining more sales

Speaker 12: Yes. This is an evolution for the model. We're talking about evolution. When we look at what will happen, we adjust and evolve in the processes and the evolutions. We see how we capture even more the risk-return relation. Yes. yes This is an evolution for the model. this is an evolution for the model We're talking about evolution. we're talking about evolution When we look at what will happen, we adjust and evolve in the processes and the evolutions. when we look at what will happen we adjust and evolve in the processes and the evolutions We see how we capture even more the risk-return relation. we see how we capture even more the risk-return relation

Speaker 16: I have a question from online, Daniela from HSBC. I think it's interesting, the feedback and increase in sales that the refurbishing of the stores has brought. The other information, if you can share how many stores we want to refurbish in the last years. And her second question about the implementation, the RFID: I want a summary of the gains that the implementation brought to the company. If you can tell us the areas and processes that count on this tool, if it's already 100% implemented. Well, I'm going to start with the last one, RFID. It's hard to say the gain. It's an end-to-end model that made feasible since 2017. We started, if I'm not mistaken, we started and finished implementation of RFID 100% in the brand in 2017. Renner brand since then 100% implemented. It's not now in 2025. It was in 2017. I have a question from online, Daniela from HSBC. i have a question from online daniela from hsbc I think it's interesting, the feedback and increase in sales that the refurbishing of the stores has brought. i think it's interesting the feedback and increase in sales that the refurbishing of the stores has brought The other information, if you can share how many stores we want to refurbish in the last years. the other information if you can share how many stores we want to refurbish in the last years And her second question about the implementation, the RFID: I want a summary of the gains that the implementation brought to the company. and her second question about the implementation the rfid i want a summary of the gains that the implementation brought to the company If you can tell us the areas and processes that count on this tool, if it's already 100% implemented. if you can tell us the areas and processes that count on this tool if it's already 100% implemented Well, I'm going to start with the last one, RFID. well i'm going to start with the last one rfid It's hard to say the gain. it's hard to say the gain It's an end-to-end model that made feasible since 2017. it's an end-to-end model that made feasible since 2017 We started, if I'm not mistaken, we started and finished implementation of RFID 100% in the brand in 2017. we started if i'm not mistaken we started and finished implementation of rfid 100% in the brand in 2017 Renner brand since then 100% implemented. renner brand since then 100% implemented It's not now in 2025. it's not now in 2025 It was in 2017. it was in 2017 The others we're still evaluating the cost-benefit and the return. What are the gains? I think it's an enabler to have stock accuracy. We have seen the importance of having inventory stock that's stock that's inventoried frequently to have accuracy of information to manage the stock. Stock is one of our biggest asset people, asset product. It's a huge initial gain that we had in 2017, 2018. After that, also it allowed us to have more speed in the cashier queues. We were able to reduce the lines, the queues of having more products at once. And the work that allowed granularity in the DC to work SKU to SKU, you need to have stock accuracy. I would say it's a big enabler of the digital journey of sorting of stock turnaround, accuracy, governance, many points, but I don't think there's one indicator. It's an old project actually for us. The others we're still evaluating the cost-benefit and the return. the others we're still evaluating the cost-benefit and the return What are the gains? what are the gains I think it's an enabler to have stock accuracy. i think it's an enabler to have stock accuracy We have seen the importance of having inventory stock that's stock that's inventoried frequently to have accuracy of information to manage the stock. we have seen the importance of having inventory stock that's stock that's inventoried frequently to have accuracy of information to manage the stock Stock is one of our biggest asset people, asset product. stock is one of our biggest asset people asset product It's a huge initial gain that we had in 2017, 2018. it's a huge initial gain that we had in 2017 2018 After that, also it allowed us to have more speed in the cashier queues. after that also it allowed us to have more speed in the cashier queues We were able to reduce the lines, the queues of having more products at once. we were able to reduce the lines the queues of having more products at once And the work that allowed granularity in the DC to work SKU to SKU, you need to have stock accuracy. and the work that allowed granularity in the dc to work sku to sku you need to have stock accuracy I would say it's a big enabler of the digital journey of sorting of stock turnaround, accuracy, governance, many points, but I don't think there's one indicator. i would say it's a big enabler of the digital journey of sorting of stock turnaround accuracy governance many points but i don't think there's one indicator It's an old project actually for us. it's an old project actually for us The first part of the question, the refurbishing or renewals, we're going to give annual guidance of the investments per year. We validate this in the shareholder assembly. We propose this in each assembly. We're looking for a horizon in terms of expectation of what we have of CapEx on top of revenue. Probably two-thirds of it will go to store opening, digital journey, and refurbishing or remodeling, and the two-thirds, probably a good part is for remodeling or refurbishing. Maybe in the beginning of every year, we can have a new horizon, a range of new stores. This year, we're going to meet the range that we gave for opening some new stores at the end of the year. We talked about 30-37 stores, and we will meet this. The first part of the question, the refurbishing or renewals, we're going to give annual guidance of the investments per year. the first part of the question the refurbishing or renewals we're going to give annual guidance of the investments per year We validate this in the shareholder assembly. we validate this in the shareholder assembly We propose this in each assembly. we propose this in each assembly We're looking for a horizon in terms of expectation of what we have of CapEx on top of revenue. we're looking for a horizon in terms of expectation of what we have of capex on top of revenue Probably two-thirds of it will go to store opening, digital journey, and refurbishing or remodeling, and the two-thirds, probably a good part is for remodeling or refurbishing. probably two-thirds of it will go to store opening digital journey and refurbishing or remodeling and the two-thirds probably a good part is for remodeling or refurbishing Maybe in the beginning of every year, we can have a new horizon, a range of new stores. maybe in the beginning of every year we can have a new horizon a range of new stores This year, we're going to meet the range that we gave for opening some new stores at the end of the year. this year we're going to meet the range that we gave for opening some new stores at the end of the year We talked about 30-37 stores, and we will meet this. we talked about 30-37 stores and we will meet this And if we look at the range for the next years that we didn't give a total per year, but we have a potential that we will let you know in the beginning of each year, maybe even be twice as big. It's not the same number every year, but it's an important potential. So refurbishing also bringing good results. We want to intensify the investment in refurbishing. We are renewals. We decrease the cost per square meter. We decrease the cost of the renewals per square meter. We can renew more stores spending less. If I can add, there's an important gain. It would be of RFID. It will bring productivity of per store operational. And if we look at the range for the next years that we didn't give a total per year, but we have a potential that we will let you know in the beginning of each year, maybe even be twice as big. and if we look at the range for the next years that we didn't give a total per year but we have a potential that we will let you know in the beginning of each year maybe even be twice as big It's not the same number every year, but it's an important potential. it's not the same number every year but it's an important potential So refurbishing also bringing good results. so refurbishing also bringing good results We want to intensify the investment in refurbishing. we want to intensify the investment in refurbishing We are renewals. we are renewals We decrease the cost per square meter. we decrease the cost per square meter We decrease the cost of the renewals per square meter. we decrease the cost of the renewals per square meter We can renew more stores spending less. we can renew more stores spending less If I can add, there's an important gain. if i can add there's an important gain It would be of RFID. it would be of rfid It will bring productivity of per store operational. it will bring productivity of per store operational RFID allows us to get into the Phase in management and the operation of the stores, all the part price, pricing of the product or repositioning of product, operational parts of the store based in people. We gain a lot of productivity and we will, it will give us a gain in productivity. It will help the dilution of expenses, for example, the phase that we are using to gain the productivity. It's still a base. It leaves the customer and enters our operation and our gain. We got to the end of the Q&A. We're a bit late. I passed the floor to Fabio for his final words. RFID allows us to get into the Phase in management and the operation of the stores, all the part price, pricing of the product or repositioning of product, operational parts of the store based in people. rfid allows us to get into the phase in management and the operation of the stores all the part price pricing of the product or repositioning of product operational parts of the store based in people We gain a lot of productivity and we will, it will give us a gain in productivity. we gain a lot of productivity and we will it will give us a gain in productivity It will help the dilution of expenses, for example, the phase that we are using to gain the productivity. it will help the dilution of expenses for example the phase that we are using to gain the productivity It's still a base. it's still a base It leaves the customer and enters our operation and our gain. it leaves the customer and enters our operation and our gain We got to the end of the Q&A. we got to the end of the q&a We're a bit late. we're a bit late I passed the floor to Fabio for his final words. i passed the floor to fabio for his final words

Speaker 12: Thank you, Fabi. Thank you, everyone. Thank you, Fabi. thank you fabi Thank you, everyone. thank you everyone I would like to add, we received a few questions and our intention here was to show what are our expectations and ambitions for the next years. I would like to add, we received a few questions and our intention here was to show what are our expectations and ambitions for the next years. i would like to add we received a few questions and our intention here was to show what are our expectations and ambitions for the next years I can answer a few questions to see how it's possible, if it's possible. Our intention was to show the ambition showing it's possible. Three questions that we received a lot and I hope we answered here to give an example about that. One was more constant, a story of growth, of profitability or distribution of values. If you grow, you burn profitability. You give profitability, you don't grow. If you distribute, you don't grow. We're trying to show here and make it very clear. It's a story of growth with profitability that's increasing and with distribution because you generated a lot of value, generate so much cash and value that we're able to grow with profitability and distribution. This growth with profitability comes from the investments that we made in the past, the tests that we ran in the past, the things we did in the last years. I can answer a few questions to see how it's possible, if it's possible. i can answer a few questions to see how it's possible if it's possible Our intention was to show the ambition showing it's possible. our intention was to show the ambition showing it's possible Three questions that we received a lot and I hope we answered here to give an example about that. three questions that we received a lot and i hope we answered here to give an example about that One was more constant, a story of growth, of profitability or distribution of values. one was more constant a story of growth of profitability or distribution of values If you grow, you burn profitability. if you grow you burn profitability You give profitability, you don't grow. you give profitability you don't grow If you distribute, you don't grow. if you distribute you don't grow We're trying to show here and make it very clear. we're trying to show here and make it very clear It's a story of growth with profitability that's increasing and with distribution because you generated a lot of value, generate so much cash and value that we're able to grow with profitability and distribution. it's a story of growth with profitability that's increasing and with distribution because you generated a lot of value generate so much cash and value that we're able to grow with profitability and distribution This growth with profitability comes from the investments that we made in the past, the tests that we ran in the past, the things we did in the last years. this growth with profitability comes from the investments that we made in the past the tests that we ran in the past the things we did in the last years That's why we brought these cycles also, and a question that some ask, well, but it's implicit here because in the previous growth, you had a big growth in terms of area. It's implicit here. An important growth in terms of efficiency, yes. Some might ask, but you didn't do this in the past. A growth coming from sales store bigger than in the past. True. It's true, Daniel showed here. We are already doing this in the last few years despite being a big challenge, not just an intention. It is already real. Our growth in the last two years comes from this and the initiatives that we were talking from now on is to maintain this growth and now bringing new leverages like accelerating once again the digital that is very profitable now. We balanced it out the last two years. It grew from 2023 to 2024. That's why we brought these cycles also, and a question that some ask, well, but it's implicit here because in the previous growth, you had a big growth in terms of area. that's why we brought these cycles also and a question that some ask well but it's implicit here because in the previous growth you had a big growth in terms of area It's implicit here. it's implicit here An important growth in terms of efficiency, yes. an important growth in terms of efficiency yes Some might ask, but you didn't do this in the past. some might ask but you didn't do this in the past A growth coming from sales store bigger than in the past. a growth coming from sales store bigger than in the past True. true It's true, Daniel showed here. it's true daniel showed here We are already doing this in the last few years despite being a big challenge, not just an intention. we are already doing this in the last few years despite being a big challenge not just an intention It is already real. it is already real Our growth in the last two years comes from this and the initiatives that we were talking from now on is to maintain this growth and now bringing new leverages like accelerating once again the digital that is very profitable now. our growth in the last two years comes from this and the initiatives that we were talking from now on is to maintain this growth and now bringing new leverages like accelerating once again the digital that is very profitable now We balanced it out the last two years. we balanced it out the last two years It grew from 2023 to 2024. it grew from 2023 to 2024 Now it gained profitability. Now it's ready to grow. We're ready to accelerate the expansion and to keep that good level of growth with efficiency. A final question that I receive sometimes when we talk about expansion, acceleration also, why now? Sometimes people ask, why now? It's not, it's uncertain. Isn't it worth waiting a bit? Why now? Because the projects are great. They bring a lot of value to the shareholders. We are ready. Installed capacity is there. The team asking to move and we're ready. That's why now. I want to use the opportunity to thank everyone. We finish now our online event. Any questions? We're always available. Thank you guys. Now it gained profitability. now it gained profitability Now it's ready to grow. now it's ready to grow We're ready to accelerate the expansion and to keep that good level of growth with efficiency. we're ready to accelerate the expansion and to keep that good level of growth with efficiency A final question that I receive sometimes when we talk about expansion, acceleration also, why now? a final question that i receive sometimes when we talk about expansion acceleration also why now Sometimes people ask, why now? sometimes people ask why now It's not, it's uncertain. it's not it's uncertain Isn't it worth waiting a bit? isn't it worth waiting a bit Why now? why now Because the projects are great. because the projects are great They bring a lot of value to the shareholders. they bring a lot of value to the shareholders We are ready. we are ready Installed capacity is there. installed capacity is there The team asking to move and we're ready. the team asking to move and we're ready That's why now. that's why now I want to use the opportunity to thank everyone. i want to use the opportunity to thank everyone We finish now our online event. we finish now our online event Any questions? any questions We're always available. we're always available Thank you guys. thank you guys