Good morning to anyone who's present in person and everyone who's online following our Investor Day for Grupo Casas Bahia. Today is a very important day to all of us. I know that everyone who's been following our journey over the last two years and the whole transformation plan, in truth, has a turning point, a moment when we start course correcting and begin to build the future of the company. We have arrived at this point, and that's why we wanted to have a retrospective. It's always good to have this reflection on what has been done over the last two years, and especially what is the company today and what are the views for this company today and what we are going to do in the future to improve results and enter the value generation journey.
Two years ago, we had two questions. One, that we wanted the answer at all costs, is the company capable to generate value and a good ROI? The other question is, will this company survive? What we've done over the last two years, it was a big risk for this company, transforming the complete operational efficiency, transforming the capital structure, turning and bringing more investment that is more stable. We changed governance and now we are on a path, a fun path of construction, of leveraging things that bring more profitability and more value, things that make us very confident about the future. No one here is a speaker, so we don't feel so comfortable about doing this kind of presentation. I prefer to be every day, Monday, talking about what happened on the weekend and fighting and struggling.
We think a lot of people are more comfortable to be here, not in a day-to-day hustle. No, because this is not our daily life. We are going to open everything very transparently, what's being done and our things that are short-term, things that are in movement happening, and you will see the results of what's happening every quarter. Everything is gradual. There is no silver bullet to fix the company. We are going through the whole process and then we are going to talk about what we see long term. What are the leverages and all the drivers and not about the guidance. It's not about directive. We don't want to establish formal targets.
You can have an idea of how much each driver, each leverage will contribute for our indicators or for the revenue, which channel for our operational margins, and then getting to LAR, AR, IR and what's the future for the next few years and the macro scenario which we influence everything. It's our obligation to have a robust and consistent objective that will offer benefits and will be an upside for our plan. The schedule for today, we'll go over four chapters. The first one, when we talk about transformation plan, everyone is skeptical. When we see other people talking about it, whenever a new management takes over a company, we always have a transformation plan. Here the transformation is real. It's been seen by everyone with very hard decision.
When we take over a company and decide to sell less to improve profitability and focusing what we know how to do, this is not a trivial decision. We've have a lot of results to show for this. We are going to talk about the new leverages that are already in movement. Each executive will present their area and you get to know all the leaders for each area of the company. We lead this company. I say that I also myself represent a group that is very big with more than 30,000 employees creating this transformation. It's not just us. It's every single person in the company. I only do three things here, we say. Select people, define goal, and demand goals, demand results.
We're talking about the path for profit and the vision of the future. Then we are going to have an open discussion, a Q&A for anyone who might have questions to ask. It's an opportunity to explore things in more detail. When we start with the transformation, we are going to try to be very streamlined and pragmatic so that you can have a result for your investment in time. Just going back to 2023, we had high leveraging. You remember that we were doing everything for everyone. I like to joke that it's like an Italian restaurant that is well-known with a huge market share, leader, top of mind, but with the delivery, the app deliveries growing and they decide to sell something different.
Our main thing is the white line, the appliances and the buy now, pay later and the credit. We had low-ticket items that has a lot of turnover with the free shipping, but we couldn't put value in that and generate value. This can demand a lot of capital and investment and compromises the capital structure. We had an event with Brazilian retail in the U.S. that was very damaging to the sector, generated a credit restriction for everyone. We also had a cultural, and we are going to talk about cultural transformation because the retail market, usually to solve problems, we look at about growing GMV, gross profit, but we had to change that mindset. We had the competition issues with all the international company and the general marketplaces increasing the pressure and the competition.
I'm not going to go into the detail in 2023, but within this context, we created a transformation plan that was very robust, presented in 2023 with two fronts. One, paying attention to operations, what we needed to do and improve our cash flow within operations and create a healthy operation because we consumed cash flow and we also had to pay for the financial expenses. We needed to adjust all the operational lines in the company so we could have a profitable business. The second, we needed to have less expenses in the financial aspect. I don't believe in retail as a generator of value. If the macro is not well, we lose money.
We needed to have a company that was light, that was lean, that could focus in the operations and have financial expenses that were compatible with the operational cash flow that we had. When we look at this plan, we had three stages, and the first stage that I like to say, when the emergency is massive, we have an advantage. The cultural change, it's more feasible because everyone knows that things need to change. The first message that we had, cash is king, was very powerful for everyone to understand that we need to remove anything from the way that was an ego trip or that was, we wanted to bring audience in the website, app download, things that were not generating cash flow. We were very focused during the stage about the cash is king idea.
For a whole year we did extremely cash flow generation, tried to monetize assets and get a breath so we could move ahead. We began a second stage of this transformation where we allowed to bet a few selective areas. We wanted to increase the client credit and on other few areas, and how we could do that was with the leverage for investment, but a proportional investment to the capacity of the company at the time, and with a short-term payback. When we reduced the CapEx, many people questioned us. We left for BRL 1 billion a year CapEx to less than BRL 400 million, and we kept most of this CapEx invested in technology, and we will hear about that later.
Today, the company is a case study for all the AI, global AI with productivity, conversion, operational efficacy, and cost reduction. With the use of the AI, we migrated to the technology from physical to cloud data center, and we changed the CapEx, and we had a quick payback, and we could reduce costs. Now we are going to a new stage, 2026, with a challenging macro, but we are standing on solid ground, and we have especially considering the global political situation, we have no commitment to growth. We are committed to the profit, liquid profit, and we are going to work so the company continue to improve so that we can have indeed an internal cash flow that is robust, but with a more favorable scenario where we can capture of market share.
When we talk about transformation, the first thing, we change the strategy. We can remember what is this company, because that's where we brought our strategy from. We're talking about a company with a very wide, large company with very few companies that has the privilege of 95% of the population active as a client. We have 116 million clients in our company, 29 million active clients with purchases over the last 12 months. Because all appliances we change every four years, and with the macro scenario, we can expand that cycle. When the scenario improves, we can have the increase of consumption and with the recurrence of purchase. It's a company with a BRL 45 billion GMV, more than 1,000 brick-and-mortar stores. We have a long history.
It's a top-of-mind company which we're the most remembered company for over 20 years. We have very strong presence with 26% of market share in physical stores and 40% on online. We have a huge potential growth and the largest logistic infrastructure in Brazil with a 24 distribution center, more than 1.1 million square meters, and with an established CapEx. With this outlook of the company, we changed our structure, which was generalist player trying to sell everything to everyone into a specialized appliances and furniture company. When you talk about 3P, we are going 3P for core products. We don't have all our own SKUs because it doesn't make sense with no margin, no return.
Some of them we prefer to sell directly from the for supplier, and we have a take rate. We are the only player national specialize in appliances and furniture, focused only in those areas. Back in 2023, we had 86% of our revenue was in this core categories and 4% and the rest was others. Or the volume that caused a lot of struggle for the logistics and costs with negative contribution. Sometimes we offer free shipping or something like that. We had a short-term revenue consumption. Nowadays, we have 96% of core categories. The rest is the products that is not core, but our structure is being used for that, those sales. For example, gym products.
Everything that is large, the company has a very strong, powerful, sturdy logistic structure for large products. That seller that has a product that is difficult to be transported, they use our supply, and they can, even without investment, without our focus, without paying attention, have good sales. We have some areas that are fitting in that 4% of the revenue. We increase the 3P share, and this helps with the return on invested capital, and we have a 3P core. In the last column, we can see the difference. There's no other player with this proportion of revenue for core or 1P proportion, because then we start to look at our strategy. If you look at the other players, they have at most 50% of core areas and 30% of 1P.
What is the company strategy? Our ambition is to be and continue to be the largest 1P in Brazil, purchasers and sellers of appliances, technology and furniture, and the biggest seller on all platforms in our own channels and other channels, be it general platforms or AI platforms, and now UCP for Google that will launch more sales channels. We will have all the differentiators to be the largest seller. We want to be the largest 1P seller. We have the largest 3P for core T-categories because we have the audience. We have a solution that is very robust for credit alternatives for consumers in these areas when they need to buy now, pay later in Brazil.
We have a journey that we add services, improve the purchase experience of the consumer, and other products that have margins for the company, but improve the client experience. This is our vision for the company for the long term and where we want to get to. Looking at these advantages, we will start to carry out our strategy. What are they? Let's remember. First one, the largest omnichannel platform for appliances in Brazil. Omnichannel serves the customer from wherever they come from with different points of contact with the customer. A strong financial solutions offer with the buy now, pay later, the credit for the consumer. This was very important to show how robust our business model for credit is in the company.
We have a national logistics infrastructure before focused in the company, and now we will see the alternatives. We are opening to third parties with more than 100 clients using our logistics infrastructure. Now we are also discussing deals. We began with the small regional deals, and now we are starting to talk with big players in different areas, national deals that will optimize the allocated capital that we have. Last, the top-of-mind brand that brings us a capability of monetizing everything that we have for appliances, furniture and technology. I'm going to paint a little better picture of the market share. These are Nielsen numbers. Remember, we have appliances, furniture and technology. For furniture, we don't have official numbers. We only have the online numbers that represent about 20% of the furniture market that Confej offers.
Nielsen doesn't have official numbers for that, and we estimate that we have about 15% market share. For all the rest, we have official numbers. Nielsen purchased the old GfK, and they published the numbers in 2025 for appliances and technology, TVs, cell phones. It's BRL billions. In the online market, we have BRL 87 billion and brick-and-mortar stores with 44%. Of course, these are official numbers based on the database information that we get from big players. Theoretically, they adjust to mitigate a possible deviation, increasing the online market. When I sell through other platforms, I notify these sales and the other platforms too. We do not notify how much we sell per platform. They look at the supplier and adjust to mitigate this difference.
We could have new deals that will influence and change a little bit those numbers. If you look at U.S. and Europe penetration, we have a similar number. When we compare one with the other, we understand the Brazilian market is similar to the others. 56% online, 44% in brick-and-mortar. There might be a little bit of alteration, but in a whole big picture, that's what it is. The physical store is 26% of brick-and-mortar store. The online market, it a market where the company before had difficulty accelerating, because if it wanted to focus more capital in the online market to grow and get share and put at the same level of the brick-and-mortar stores, it's better if we use the market of the brick-and-mortar stores.
We evolved our operational performance, so we can improve online and speed up online markets without having to increase our inventory. We can improve the return in our investment. Once we reach at our superior operational level, we can see the market share increasing and getting closer to the brick-and-mortar store numbers. We have a better general entry in the general platform, so about BRL 35 billion of the online market for the general platforms. We didn't have a share in that, and now we do. You can have an idea of the potential that we have on short-term investment return. When we look at the different areas, so we can have a more a better picture. One in three TVs sold in Brazil.
We have the percentages on the screen, and we are looking at numbers that are more relevant. Cell phone, 17%. We are growing less with the cell phone. When we began with the offerings, insurance with a bad macro, with the increased sales of cell phones. We have a sales opportunity for insurance and services that improve the contribution and sales, even with a different gross margin, and this will be talked about later. The white line's 26%. The light seasonal lines, 12%. In IT, we have a smaller market share. In IT, a smaller market compared with abroad, BRL 20 billion. We have 19.8%. We have very big, powerful strength in tablets and the corporate market, which is a big market and that we are not taking advantage of.
Yes, it's in our plans to start to approach. We are not going to look into that today. It's a big potential market. Different players. What's been happening in the region for brick-and-mortar stores? I think it was clear for everyone that's our strength. Online is growing, but our DNA is brick-and-mortar store, where we have a good penetration for credit. Why do I believe in this? When we look at the market share in a brick-and-mortar store, we have the two red and blue states, the two areas, São Paulo State in red and the Southeast, Minas Gerais, Rio de Janeiro, and Espírito Santo states. In this area, our market share is 40%. 38% in São Paulo. 42% in Minas, Rio, and Espírito Santo. White line is almost 50%.
You can see that we have a huge market share in those areas. The company leads, and we are growing similarly to the inflation. We can't grow even more because this consumption for high-value items depends on the macro. Families have debts, so they restrict consumption. Of course, the macro is improving. The growth is better. Currently, we grow based in the inflation. Look at the other areas. Why do we have good growth? If we look at Northeast, for example, in the light green, we have 26.7%, 35% in TV and 31% in white line. This, three years ago it was 15%. We've been growing for a long time. Of course, last year, the financial situation has deteriorated, and we have been more conservative in the credit line.
We do have market, we do have a demand, but we will not speed up our growth until we see numbers that allow us to do this with the conviction that we will have a positive return. We are not here to increase risk. We are here to prepare the company for a healthy growth with profitability. This happens with North and Center with a lot of market potential, but with a low market share and potential growth. Our focus is to grow with same store sales. It's short and medium term, we can open for more. In the South, a little bit different with similar numbers, but we have less market for credit where we generate value, and we have a higher competition with regional companies. We see the regional players in other regions with more difficulty to compete with us.
We see a higher potential growth and more advantageous growth in North and Center rather than the South. The South will be left for later. We have one more factor that is helping us. The market is not growing. We had all the credit restriction all the way back then. What will help us? We have been working on developing new suppliers to the company, and this company is acknowledged as the company that introduces new brands in the market. Our store teams is huge. When we launch a new brand into the market, to build reputation, if you go online, it's expensive. You need a salesperson to say, "This is trustworthy. We use this brand. We have no issues.
If you have issues, you can come and talk to us, and we can solve it with post-sales." Casas Bahia Group became the main channel for Chinese products that are arriving in Brazil. We have been bringing new brands in all areas, and each area have new players. Look at that China how it has been fourth position to second position for us. China is closing close to 25% of COGS, and by the end, it's 21%. If you look at the whole picture, it's much bigger. First, the credit lines. Secondly, these suppliers, usually they want to earn market, so they offer a bigger margin and a longer payment plan. We will talk about this later for our investments. This also helped us with the restriction that we had in the most challenged moment back in 2023.
We're gonna enter into this competition. Obviously, Gustavo's job, he's gonna be leading our commercial team and marketing and e-commerce. It's gonna be a lot easier because he's got competition with his suppliers for the same kind of share. The company is actually getting the bigger share of this with all the capabilities to increase their share. For the ones who really wanna grow inside Brazil needs to offer for Casas Bahia Grupo with better commercial conditions given in margin and working capital as well. We will go over that, you know, we're just talking about that we needed to change our strategy or change our mindset in here. Just to keep in mind of what's been worked so far when it comes to decision-making in a company.
You remember that we used to say that we were just looking at about the whole margin of the modeling of the business because we didn't have anything clear-cut yet. We're talking about a very simple way to look at. We're just talking about the margin one layer in this scenario. What we've done so far is when it comes to decision-making for the entire company team, all the commercial and Luciano's team, so we can actually get to the fifth layer and including all the expenses, the variable expenses of those sales to get to the unit value of each item of these specific layer. Then we have the inventory and the capital storage in here.
Margin four is gonna have the financial actually approach to the consumer. I'm gonna have something related to this, to the payment conditions when it comes to installments and of course paying in cash. Of course, the fifth layer is gonna be the e-commerce, including the operational cost of the store, so we can have a better contribution margin for our SG&A. Of course, our mindset has really changed to know what we're actually gonna buy and what we're gonna sell. Then we're gonna have a follow-up with all of this in a daily basis, of course, with all of our bets in a more efficient when it comes to invested capital.
We have a very strong management mindset, which is way easier to sell the return on investment concept. We created very simple margins in different layers that make clear to everybody what's gonna affect our entire income. I think it's actually pretty easier to visualize those factors. Making a retrospective what's been changed so far, we presented this slide back in 2023, and this is just a few of the deliveries. I'm not gonna go over all of them, but of course, those are a few of the deliveries. When it comes to the transformation plan, of course, they're pretty relevant when it comes to the growth of what's being generated in terms of value in the company as a credit line and physical stores for brick-and-mortar. We didn't have any growth driver inside all of this.
When you have a very sharp reduction and leaving distribution aside, you're gonna have a better core, creating a very stable retail media channel to monetize this entire ecosystem, which is pretty relevant that's been brought to the company as well. We performed a lot of cost reduction, almost two G&A points, almost BRL 30 million saved in savings for organization and structure. Of course, Andre is gonna go a bit further over this. We had a cutback in all company lines to increase operational efficiency, having cities, footprints, and of course, so many things going down the line to make things more optimized. A simple comparison from 2023 to 2025.
That's why I'm talking about this turning point, and I would like to make it a bit more tangible to all of you guys how different we've been running so far. Look at those numbers. When we come to the cash flow, the initial stage, we're gonna have a leverage from 1.8 x to 0.4x. The BNPL GMV is actually set for BRL 24 billion-BRL 26 billion, which is pretty relevant. Of course, we had a lot of inventory freed to make things available, of course, increasing our profit and diluting our invested capital. We have 26% in terms of growth in this specific line. Then we move on from the credit line, on a NIM from 3.5%-6.6%.
We have a 2-point average gain for the EBITDA, moving up for 4.5 percentage points. Of course, we have completely different numbers with another level of operation that will allow us to get in another agenda. Focus the more value generation in the company's future. None of this was actually performed overnight, and of course, none of this will actually be performed overnight. The most important thing of it all is the consistency, the discipline, so we can actually move on improving each trimester in a graduated way. We're talking about nine consecutive trimesters in improvements. Of course, we need to take a few steps back to improve in our levels of production. Of course, having less profit of it.
Of course, the consciousness that we need to have when it comes to company management is not work for the market, not perform in a very good quarter in a fast way and compromise the other, the upcoming quarters. I believe that's gonna be the biggest mistake we can actually incur. We need to actually have a progressive work little by little, of course, having better consistency. You guys have seen this slide time and time again, but we really need to show it to show how consistent and the capacity of execution of this team. That will actually give me you know, the trust that we need to move on and the better results that we're gonna actually lead for the next years.
Of course, bringing improvements and placing it in a place that it belongs when it comes to value generation in a retail market, of course, with different metrics of efficiency over our capital invested. Now Elcio's gonna come up to the stage and to talk about cash flow and our BNPL numbers. Good morning, everyone. Thank you for your presence in here. I'm gonna move on with the presentation. Renato said a lot about all the advancements when it comes to the transformation plan in August 2023. I would like to close this first section with when it comes to net profit and the conversion cycle for all the payments when it comes to leasing and CapEx. Before then, when it comes to the program that we started.
We had the EBITDA reference numbers with the P&L as a guideline for you. We clearly have a turning point back in 2023 in which we already had this, a positive number coming along. We advanced to 2024 and 2025, reaching to somewhere around BRL 2 billion in 2025. We understand and we acknowledge the positive numbers coming along, but we know that it's not enough towards all the expenses that we have when it comes to leverage and the Selic rates that we have in a market. Of course, we need to contemplate all the tax payments of the levels to keep on moving on with the operational level and be very strong when it comes to all the expenses that we have, of course, coming in a very on a transformation balance, of course.
Now we're gonna explain how this journey when it comes to the capital investment since the first slide, since Renato showed when it comes to transformation plan, which is a paramount cycle for us to explain when it comes to operational level, the cash flow and the strategy and net profit. Of course, we need to have a lot of visibility and to make sure the capital structure that we have, which is pretty fragile to work around. There is no way to work with one thing without prioritizing evolution the operational level of the company, which was pretty important. Of course, we have a lot of examples in here and specific moments, crucial moments of our project that started in December.
Of course, this is in a sequential evolution of the sequence of the operational results along with the initial operation. We started back then, and we needed this amount of backup resources. We had somewhere around 50,000 employees, and of course, we had a lot of, you know, stores closing, and all this created a lot of cost. We managed to get BRL 1 billion on the initial follow-on. Then we started working with the refining and all the debts concentrated in the short term. Of course, it would limit the entrance of new suppliers. Of course, we had a very good restructuring in 2024, preparing the balance of the company for strategic movements that we had in 2025.
We had four specific movements and fundamental to the company. The first one was the credit line for the FIDC. In here, we had unlocked once and for all the funding restriction for credit line restrictions, which is pretty important for our company. I believe it was a bit before that, but when it comes to January 2025, we had all the funding restrictions unlocked, and then we started to work on a good profitable credit line. I believe we're gonna have further explanation on this. We had the first conversion back in August from BRL 1.6 billion in debentures and equities.
Of course, when we had MAPA Capital as a main holder of the stock of our company, of course, we had advances when it comes to corporate governance. In the sequence, since our first strategy transformation plan, the first IPO with corporate risk through a FIDC project with a minimal offer, initial minimal offer debt set for BRL 180 million that will actually consolidate the brand and the corporate, the market cap to sum up a final value of BRL 555 million has shown the legitimacy of our transformation plan and how good it would actually become.
I believe the most decisive, the paramount stage of this specific project and then the transformation was the complete conversion of our dividends of our company, making a conversion of around BRL 3.3 billion by the end of December 31. It happened by the end of the month of December, and we managed to actually make it available. I would like to take a moment to thank everyone, all the stakeholders in this specific journey, which were a lot of people to make it happen by the end of it.
Just to reinforce these two specific strategic movements from August and December of what they would really represent, we had a dividend reduction in here, working on the entire profile and the entire transformation of our expenses in here. That's what happened when we make the sum of these specific moments. We had the savings, a tax savings of BRL 2.8 billion for the next five years. In here, we have a capital savings for the P&L in the next five years and a cash flow savings for BRL 7.7 billion for the next five years. In here, we were able to understand the...
Yeah, we're gonna have BRL 7.7 billion less of this specific expenses of which is pretty relevant in the capital structure of the company. On another line, of course, I'm gonna bring a few insights. This is the second one, the second movement. Before the December's movement, on your left-hand side, you're gonna have the expiry dates of each specific segment that we have, which is pretty visual. I believe in 2026, of course, we need to keep in mind if we're gonna have out of the 157, we have 146 already paid. From now on, no expiry dates are actually gonna be outside of the company scope.
We're gonna have all these debts we're gonna be working on in a very strong payback in year 2025. We're essentially not gonna have any obstacles contrary to what we had previously when we were working well for the next years. Finally, we have an overview of how the transformation when it comes to leverage and the capital of the company. Of course, we're gonna have a reduction of 77% of our debts. I'm talking about 77% of debts, essentially moving from BRL 5 billion to BRL 1.1 billion, and the leverage that is actually moving from 2.2x to 2.4x.
Yes, we're actually putting out for you over different points of view how this transformation came along and how what were the prerequisites. Of course, we're talking about profit. Of course, we didn't actually make it there, but yes, we are actually setting the cornerstones and the main pillars to set the journey ahead from now on. It shows clearly the leverage that we had dropping in a substantial way after this specific movement. Then we have the first outcome. Once you have this transformation going on, the risk and reward section starts to change. Of course, for all the suppliers, before the results actually came along, we started to work with the debt profile and the remaining factors of the company.
Yeah, we had this stretching out of the liability management, in fact. We really are not really pushing it. Of course, we need to be more resilient, more robust, improving in all our financial aspects from now on. This is the first movement. We had a replacement of BRL 1.4 billion, which was in a short-term maturity, and we stretched it for a long-term maturity, giving it more, being more predictable, reducing all the financing risks that we had. Of course, we need to renovate all of them. We start to work with them with the specific debt profile, of course, elongating, extending them to.
The remaining debt, the total, the complete remaining debt that the company is actually gonna be set for BRL 2.2 billion for in a short term, moving on through BRL 4.3 billion . Not only in the specific aspect of leverage, but we need to talk about the remaining debt to leverage in looking at a more comfortable position. We had, of course, many scenes of the next chapter of this specific project and the leverages that we're gonna have. We're gonna have a short pause because we're gonna finish. Meanwhile when it comes to numbers and statistics. Now I'm gonna call Dea to the stage to explain how we were able to do this, to perform this transformation up to now. Dea, you can come up to the stage.
There's no strategy, there's no mindset change without, you know, going over for all the people. Dea is the one responsible for communication, sustainability and management of the company. We had a cultural change in a very significant way, and a change when it comes to, you know, the entire change. Not only the cultural change focused on growth, but discipline, consistency, and KPI-focused with audience forwarding of our targets, and of course, specific management routines in a well-structured way that brought along all the results that you guys are seeing on the screen. Dea, floor is yours. Thank you, everyone. Good morning. Thank you once again for being in here with us.
Now we'll go over a bit of how this transformation was performed, the structuring all the offices of transformation with all the initiatives and management model in a very different specific way, so we can actually sustain this transformation and allow us to ingress on a growth stage. Elcio brought all the financial aspects. We had no struggling with the financial issue, but organizational on an organizational level as well. We had by the end of the year 2023, we had the need to revert all the results when it comes to EBITDA results. Beyond all that, we had a very critical scenario of you know, image and reputation, the way that the market perceived us and would bring along a very catastrophic scenario.
As Renato actually mentioned it before. When we look at our internal numbers, it didn't actually go differently. We had three specific indicators, and I'm gonna show it to you right now. When it comes to personnel expenses, fixed assets turnover actually skyrocketed. When we make a comparison for you know personnel expenses back in the year 2022 to 2023, we had a growth of 25% personnel expenses overall. For fixed assets turnover, from 2022 to 2023, we had a growth of 884%. When we talk about Great Place to Work indicators and rates for in a company, we had a decrease of 10 percentage points.
We were left there for two years without having the proper acknowledgement according to our results. Yes, we really needed to have behavior change. Of course, the entire model process of change had to be an entire office to actually have a main role in there. We had, of course, people management office working together to bring those results along. In the first section, when we talk about the culture, we needed to revisit the culture that we had. Of course, we had many companies up until the year of 2023. Each specific company, each specific segment had their own set of values or culture and working as a silo, so it would leave the company in a pretty stuck position, and every daily team would work with their own culture.
Of course, they would not converse with one another. We had duplicate structures in each specific company. We had specific mindsets in a very distinct way. The first work when it comes to culture change was for us to perform workshop so we could perform a culture evolution. All the collaborators, all the employees started with you know, whether anniversaries when it comes to all the offices. We could actually understand what kind of culture we really would like to have and evolve in, and how we would focus on those lines. This is our culture map. Of course, I'm not gonna go into any details in all of them.
When we look at those specific six pillars, when it comes to delivery results, having passion for our people, simplicity in everything I do, total dedication to client, and ethics and integrity. Just to sum up what we're trying to bring in here, we have in a specific culture of being able to deliver consistent results with all the people in the right way. That was the simple way to do it. That's how we performed all the work when it comes to, you know, guidelines and orientation, so everybody could be on the same page. A few specific rituals and cultural symbols which were pretty strong for all of us when it comes to the brand change. We were not anymore retail market, you know, player. We had another strategy coming along.
We needed to start getting back to be Bahia Casas Grupo. Of course, we had other places like Pontofrio, you know, to all the other customers. Of course, they didn't understand the brand just as Ponto. It was not something that was lived in a store by our customers. We get back to actually the brand Pontofrio. It's another change. When we think about the entire cultural experience of, you know, office and retail market, we need to be really close to B&M. When we leave one physical store in Eldorado, we had, you know, this underground department and everybody up above.
When we make this connection to be really able to test what's working out, you know, the reality about the whole feedback, and having this feedback all the time, of course, that was another important cultural transformation. When we talk about our targets in the year 2024, when we made the implementation of targets, once again, we had three years without, you know, a target unfolding. We had an entire company in the dark not knowing about, you know, their overall goals when it comes to you know, business model. Yeah, we spent three years without doing that, and we actually got back to a very specific methodology when it comes to, you know, target unfolding and a corporate targets, of course, is something pretty paramount.
How we would be able to direct everybody into the same line. We have an example of the few slides that have been presented. When it comes to margin four layer, all the employees in the commercial department, when it comes to logistics and commercial planning, are also assessed by on a margin margin four layer. When it comes to margin five, everyone in store operation is actually assessed. So when we look, you know, about by the year of 2024, when the corporate perspective, by the year of 2025, I'm sorry, we had, you know, accountability. We have ENPS. We have cash flow and management and monitoring. We have ESG goals, of course.
For this coming year of 2026, we have the CDC production project, because we're gonna have a project coming by the year of 2027. We're gonna be putting everyone on the same page every year with specific and clear goals for the project. When it comes to ESG, so you guys can have an idea, we had an EBIT result meeting given every Tuesday where we would have so many people taking part in a four-hour meeting. No one would actually re-participate. No one would ever work.
Yes, we reviewed all these mindsets, so we can have an analysis and decision-making with all the right people and a rhythm of help, you know, making every meeting actually look into one another when it comes to the specific planning of the week, when it comes to all the results and the implementation of it all. All these choreographic dance and the meeting change was another cultural transformation as well. We had a few rituals. Of course, when it comes to the annual convention of sales, it was a bit of a doubt of what we were really gonna do.
When it comes to all the leaders, we had more than 1,000, you know, store managers to be, to have everyone on the same page to talk about all the culture and of course, all this information aligned is pretty important. We have all the managers brought together in this specific event and an annual meeting, leader meeting and Bora de Varejão, which is a program where all the collaborators are actually taking part in this specific event. Then everybody gets to be on the same page. All the messages that we need to deliver when it comes to focus in the following month is gonna be related to the specific meeting. When we look at how we've been represented and how we've been represented.
Our collaborators are, of course, the representatives of our customers, which is pretty close to the diversity that we're gonna have when it comes to our customers and collaborators. We have 43% of women in the company, 35% of them being leaders in our offices. We have another program, which is the Dona de Casa program, in which we are gonna actually develop those women when it comes to our store operation and in our offices, so that they're able to have the opportunities to become leaders themselves. We have 50% of our collaborators being self-declared actually as a skin color example. Of course, we're gonna have...
We do understand that our leaders are actually gonna be ready to deal with the collaborators, with our employees. They're also gonna be ready to deal with our customers. Approximately, we're gonna have 23.5% of the Brazilian population have some sort of disability. Of course, we need to have our leaders to be prepared to be able to deal with all the situations. Of course, it really makes a difference when it comes to customer support in that level. Fundação Casas Bahia, I'm gonna open a chapter in which we're gonna be talking about really fast about overall this. We made a recap of these specific areas, so we could make everything simple and of course, be a bit more closer to the business. We re-reviewed all the pillars of the foundation.
Of course, we had young women's reproductive inclusion, and of course, feminine entrepreneurship and financial education. We had this entire history when it comes to foundation, capital and consumerism, and how we're actually gonna work with all this, how we're gonna create programs in terms of this kind of investment. We are talking about, you know, future talents and consumers. When it comes to feminine entrepreneurship, we're talking about women in entrepreneurship area, of course, formal employment. Of course, they're gonna consume all of these products. To increase their income when it comes to feminine entrepreneurship, of course, is gonna increase our customer base as well.
When it comes to financial education, we're not talking about philanthropy as a business strategy and how we're gonna act as when it comes to inclusive credit line and sustainable line. I have three specific points when it comes to renewable energy, renewable economy, and of course, all the taxes and indicators that we have. We have 84%, 94% of our energy park working with renewable energy. You guys can have an idea. Back in the year of 2021, we only had 20% of renewable energy facilities. We had a great focus in all of this. When we talk about, you know, the expenses and the numbers, we have 48% when it comes to avoidable costs using renewable energy in our structure.
In our energy has a very OpEx impact and operational risk because of that, we can have a better level of efficiency when it comes to energy saving in a better way, and when it comes to renewable energy, as Renato just mentioned, you know, we have people buying every four years, and then we have the entire process of when it comes to reverse logistics and recovery of appliances when we talk about, you know, efficiency, operational efficiency of sustainability and recovery. We have all the testimonials on events that we take part in, and of course, it involves a lot of transparency and governance. ESG for us increase the efficiency and the risk reduce when it comes to materiality.
We would only actually cover the impact and the social, environmental impact, and of course, we brought the financial impact along. All of this stage is actually covered by the business strategy. Looking at our council and all the diversity actually composed by all our council members, 57 of them are actually independent and 71 with international experience. We have another education when it comes to multidisciplinary team. When it comes the strong areas which are finance, market and strategy beyond other strong knowledge when it comes to strategy and capital allocation, M&A, finance and capital investment. With all this, we have a very distinct board when it comes to...
At which we can actually bring the independence and the, you know, executive experience and all this portfolio when it comes to decision-making in our group.
Leaders. We changed a lot of our leaders, but we also trained a lot of our leaders, and we focused in their development and salespeople as well, because everyone needed to be retrained so that we could have this significant change. We promoted people that in the cycle stood out, and we brought new people in so we can have prepared people for all these changes. Now, when we talk about excellence in execution and expenses of human resource expenses, we need to talk about numbers. From 2023 to 2025, we reduced 20% in our headcount numbers. This reduced BRL 44 million a year in expenses. It was not just about firing people, because laying people off, as hard as it is an easy part.
Doing this in a productive way with an organizational design, with analysis, and also knowing that at some point we needed to growth and open new positions, as we created new areas, we were reducing our workforce. We worked with automation, and here are some examples where we grew, e-commerce, CRM, and new areas that we created. For example, retail media, supply and pricing, and we grew those teams. Those teams, even being bigger, have an revenue impact that was considerable. When you look at organizational design, we look at it focused on the growth and the future of the business. This is not just about laying people off. How did we do that? We digitalized the sales teams, so we have omnichannel sales. We have data guided or informed decision, AI agent and automation.
I will not go into this because Flavio, Fred and Vital will be talking about this later. Then the news. A presentation changed with a more positive outlook for our results. When we look at that initial slide internally, human resources expenses, we see a reduction of less 35.4%. The position turnover for critical positions decreased in 66%. We began to be certified a Great Place to Work with a growth of 6 percentile points. In 2024 and 2025, we were awarded as one of the best companies in Brazilian retail. What did we really change when we talk about culture? We use the goals.
We have a structured S-cycle for people, leaders that are prepared for change, new suppliers and training, culture for result, and execution focused on discipline. We made our operations leaner and simplified in increasing productivity. We look at the value generation like this. The culture defines engagement. Engagement defines the behavior. When this worker really wants to deliver, the behavior defines productivity, revenue, EBITDA, cash flow, and this all adds value to the company. The strategy defines the path. The path defines the results, and the culture defines the speed. Thank you. Thank you, Diane. This shows how we created productivity and agility to the company. We became more agile. We are close to the baseline of the company and we created evolution. Now we are going to talk about the most important chapter.
What we've done so far is done. Nothing is new. We just reminded everyone of context. The most important thing when we talk about what we did and the whole transformation, it's what unlocked things. From now on, we have a lot of opportunities. I would like to call Elcio here so that we can look at a different points of view that will be unlocked, that will bring a lot of short-term benefits. Then let's talk about the most important one, which is capital structure. We transform things in a huge way, so we change what is short-term, and we have a lot of things to change to add value. The new stage here for capital structure never ends. This will never finish. What we have is the optimization and it's a continuous evolution.
We have three fronts that we are working on. First, capital reduction cost. We are looking for balance and reduction of this cost. Optimization of the profile of our debt. I explained already what has happened so far with the reduction of the short-term and increasing the long-term. We will continue to work with more speed and commercial proposals so that we can monetize assets and other initiatives. The first part, we are talking about two important areas. The first one, part of our financial expenses. In our client credit, we have been hiring and negotiating an important reduction of the funding for the credit, client credit. With over BRL 5 billion, with 150% of CDI for a reduction that is considerable.
The result of this, just so that we have an idea, happens in a gradual process. Every month, we pay our debt and we generate new ones. We have an average period of 14 months. We get this benefit of 3-3.5 percentage points of reduction after one year. This will happen gradually, and it's already defined. It doesn't mean that it finishes. We will continue to look for, over time as we deliver results, reducing this credit spread. This is the first point. The second is to anticipate the receipt of credit card payments, so we don't have to focus on corporate credit, but it does have an impact on all the rates that we negotiate. We try to reduce at least one percentage point.
I'm talking about credit spread here versus what we have today. The reduction of one percentage point. The suppliers, we're talking about the risk of four to five percentage points versus what we had. We're trying to talk about the growth of the company and having more demand in our balance. We had higher expenses, but this is the moment with the new balance to begin to work and renew all these credit lines at better spreads. This is the type of work that is important for us to do over the year. It's important to highlight that when we look at this, sometimes people from on the outside don't understand the change of the dynamics. Back in 2023, 2024, every day, we had to go knock on doors and ask for the credit line, so we keep operations going.
Of course, things weren't so easy, and we paid high rates to keep the company as it was. Slowly, we improved the new lines with better lines, but we still have lines with a higher cost. Slowly, after this balance or even before, people began to look for us with different stakeholders. We changed the profile, increased the availability of credit. We don't have credit restriction in any line. We have credit available for all lines, but there is a pressure for negotiation where we can lower their spread. What's been mentioned are things that are on the table, that have been done, that we have negotiated, and we have a different type of funding cost. This transformation takes time.
Some of the changes have already happened because we have deals with other debtors that they were supportive in the past, so we cannot break those deals from one day to the next. We are changing all of this in a gradual way. We expect that we cannot have a sixth full year because there is this gradual change. If we look at the rates for 2026, the profile is completely different from the beginning of the year. It's very different. The BRL 600 million that we see is the direct conversion and the impact of BRL 7 billion over five years. This is all direct. The indirect is much larger, and we are not mentioning all the benefits that we have for being more flexible to negotiate with suppliers, have better commercial concession.
Because the credit restriction made us go wherever we could, and we couldn't look for discounts because we have different limits. Now our dynamics have changed, and we have more operational, more efficient operations. Again, we cannot change any structure from one day to the next. We have the BRL 600 million that we have. Just about the Selic rates, just so you understand, in the simulation and the analysis, we have direct impact in the expenses. For each point, we talk about BRL 150 million in financial expenses, and that's the impact of financial expenses. With the reduction of Selic rate, we have positive results in our P&L, be it demand, credit lines. This affects us all in a positive way as this goes down. The second part, we'll talk about profile optimization.
We have a transition for a more pressured balance to a more robust situation. We're talking about lengthening of deadlines. The liability management is very traditional, but we want to take care of all leverages. We want to diversify our funding and from a more clean balance, we can look at other options, diversifying new investors and debtors with more involvement of other market stakeholders, so that we can make the power of negotiation and tax and rates more lean and bring us into a lower level of debt. Also the financial flexibility, we can allocate the revenue in a more flexible way. All of this corroborates the capital debt alternatives. Our belief is that in Brazil, everything has cycles.
Companies as big as ours must be stable and flexible. Of course, when we talk about capital costs, the highest, the diversification of capital sources, the more offer we have, and in consequence, we can improve the cash flow. Again, it's not something that we can do just one thing, but each project, each path and each tax credit that we open and the capital flow and new funds, and we all increase that in the second stage and we reduce spread. The third line, new suppliers, and then we have all other alternatives and less cost. Then all of this, each access will allow us to be more flexible, and we gain the flexibility.
When we look about exposure for short-term debt, we have nothing short-term, but we want to have a resilient company for any macroeconomic scenario. We understand that we have different perspectives that will lead us to believe that we will improve, but we also had the perspective in 2023, 2024, 2018, 2019, and all the years. Our life in Brazil, it's always believing the next year will be best. In truth, it always surprises us. Our duty is to have a company that is prepared for any scenario, to generate value in any scenario. If the winds are favorable, we are grateful and capture the upsides and try to generate value. The third pillar, our new leverages are leverages in movement to bring more money, more net flow to the company, and in consequence, reducing financial cost.
Two of them that we announced is the sale of our participation in a financial company. We're just waiting the central bank's approval with the BRL 260 million, is what we receive, but we went over this. It's closer to BRL 300 million. We talked about defaults impact. We're very clear about this impact to add this to the results. What wasn't mentioned before is that behind this, we have BRL 400 million deposits, judicial deposits, that was deposited in the same cases, and we can raise the information. This doesn't happen from one day to the next because we have to look at each state, and this is more bureaucratic. In about one year and a half, we'll be able to find this information more properly.
Again, this is a gradual process and it goes state by state. This is basically resolved. We have some time still to do the operational area stuff, but we have other initiatives that we are working on, some faster with a renewed balance, a lighter balance, and maybe we'll get better commercial conditions so we can improve and carry out our operations. There's a number of things. This is not extensive. We sold Fique Ponto Fuel Bank, and we have the new way to negotiate credit. We have the assets of real estate company. Because of the new condition, we can work on that and negotiate that better with better conditions. We have the tax credits that continue to move ahead. I will mention about that when I talk about the tax reform.
There's a number of things that we are working on, not only to offer operational changes, but other lines that we will invest capital in our company. Again, when we look, this is not completely extensive. There's a number of other leverages that we are not presenting. This is an open company. We cannot show everything. This is just a touch of it. Today, within the insurance companies and warranties, we have a number of alternatives that will bring cash flow to the company and improve the capital structure. Of course, one, we need to solve what's back there and also be more efficient from now on. We reduce what we need to do, the cash consumption with the leverages that we had credit restriction.
That's why we are so sure that the future cash flow will be much better than the past. Thank you, Elcio. We will continue to talk about what's going on for benefits. We talk about store logistics. Operations is the core of the company. Fred leads our operation area, the transformation that has been massive. He had an increase of 40% in productivity and the salespeople become happier, they sell better, and so on and so forth. This has been a path of looking for efficiency. Good morning. Good morning, everyone. Good morning. Now is time to talk about the operation of this strategy. For anyone who doesn't know Fred, he's a Brazilian born in the countryside. We joke. What about this accent? He's French, but he's already Brazilian.
Has been living in Brazil for 15 years, so he's already nationalized and he can bring a different point of view and he helps us a lot in our evolution. Please raise your hands if you don't understand me. I take care of all the logistics and the important thing is we are a great company in Brazilian retail, and this gives us a lot of brick-and-mortar stores that are very relevant and we are very close to our clients. How? We have more than 1,000 stores in 23 states with a logistic mesh that is very robust and helps us deliver to all our client customers. But this is on a quantitative value. It's a competitive advantage. How does that translate? That translates in an increase in our productivities and we decided three strong things to improve that.
First, we reorganized all our stores. We reduced 45% of our stores that were in ICU. At the same time, we improved the mix of stores by street stores and shopping stores because we have a very clear idea of what is the winner in this outlook. That's why we focus at the brick-and-mortar stores were in the best possible. This improved our salespeople journey. Today, our salespeople have everything in their hands through the cell phone, through AI and other things that we will show later. The interesting thing here is that this digitalization is not connected to the revenue. It allows us that the individual efficacy would bring financial results. Also, we had efficiency gains in the distribution centers. We earned 6% in productivity and we optimized the use of our space.
We return more than 100,000 sq m. With that, we grew, but we are making use of the technology in a unique moment. Today, our physical stores are not just physical stores. They have become logistics hubs, and we have more than 250 stores that have this role of last-mile. The interesting thing is that this year, these hub stores will become hubs for big and heavy products. Very few companies have been able to do this in Brazil. At the same time that we have the omnichannel in the stores, our salespeople have become omnichannel. What does that mean? Now, a salesperson at a store, they can sell for the physical brick-and-mortar store, but they can also navigate the entire company through the leads that they receive, WhatsApp, they're the most used tool.
This happened because we made data-driven decision. Now we put in our decision a lot of awareness, science, data and AI. It seems like nothing, but when we see that the AI is present in the salesperson allows for a lot of issue solution that would be a problem for a brick-and-mortar store. As part of regionalization, this ascension and how do we do this every day? With these AI agents. With all the tokens that they receive, they can answer to any demand in any store, in any moment, in any part of Brazil. This is a different way of growth. Of course, this was supported, and I think Renato mentioned well with the logistics that is more and more competitive.
First of all, our national presence makes our network massive, and we can deliver 100% of Brazilian stores today. The most important thing is that the volume of heavy items that we are able to deliver, and as we bring in more and more clients from outside that want to use our network and our CB Full will become a service platform. They can service fulfillment, transport, commerce. More than 400 clients that use the CB Full are so happy and growing. This made a huge difference for us, for our strategy. Of course, when we look at all this, we are ready to grow, to go beyond.
Our growth with data, discipline, a growth that will allow us to expand a structure in a structured way. We have a number of indicators for this, both for socioeconomic, for method, and the idea of what we want as a winner store and a store that could have a positive impact. The participation of the buy now, pay later is essential for our expansion, for example. Using all this data, we mapped 140 municipalities with potential, of which 52 could be prioritized in a quick way. We are ready. In summation, we have a operational efficiency with a scalable opportunity for growth. With discipline, because the scalable growth needs to be sustainable, and this is what I had to tell you. You can see that the operations are more efficient. I think the foundation has been created.
There's a lot to do still. We have the routine. Some stores improve, some change the market. Tax rates increase, and we go back and reevaluate and adapt. The main adjustment has been done, and we continue to get the fruition of all of this. I would like to call for Gustavo. Gustavo deals with marketing and e-commerce. The operational basis is created, but we are not here to grow by selling more. We want to sell better with more profitability, with the optimization of the capital, improving your working capital, so deadlines for payment, commercial margin, and attachment capability of each product that we can add, credit, service, and optimize the margins. Tell us a little bit about commercial and marketing. Thank you all.
It's a great pleasure to be here, and I'll begin to talk about the marketing point of view. It's a very important group for Casas Bahia with a lot of efficiency, profitability, and we have a lot of new things reinforcing our brand, our strength, and our leaderships in our segment. I will show a video that shows a little bit of what we've done in 2025 and 2026. Casas Bahia is one of the strongest brands in Brazil. It's a top of mind for 20 times. In 2025, that was no difference. In the last year, we transformed the marketing with technology, data, and AI. This transformation brought efficiency to our operations. We reduced 50% of cost in campaigns and increases our capability for execution. With this structure, we scaled communications and created sales movements that transform conversation and results.
One example was Live Black Friday, the largest Black Friday of retail in Brazil. We delivered things in real time with the best offers. Of course, our objective is to do more with less investment, and we reach more than 130 million people a month with 30% efficiency immediate. We see the strength of the brand. The preference of a consumer went from 6%-10%. We are present in a number of different social media and shows. This became a wave for the brand with a number of personalities. What do you want, TV or a fridge? And so on. The products lift the sales of up to 190%.
We launched the Zap Bahia with the WhatsApp sales channels, with the digital sales, with AI, recommended products, analyzing pictures and suggesting the best solutions. Today, more than 1 million clients have interacted with this channel, a structure that connects the brand, culture, and consumption, leveraging our results. Our e-commerce has grown 22%, while Casas Bahia group increased 9%. We continue to accelerate results with technology, data, and a brand that is more and more present in the Brazilian people's life. This is Casas Bahia. This is dedication, complete dedication to you.
I think this is the reinforcement of how our leadership is actually coming along on our physical stores. I wanted to look at the dimension of our market. We have 26% of the market share when it comes to white line appliances and one out of our three freezers and one out of three of our TVs are actually sold by one of our groups, and of course, which shows us how good we are when it comes to top of mind. When it comes to capital allocation with a credit line agent, of course, I was just talking about how strong we are with a very competitive approach.
We know that we are a market leader, and we know how strong we are when it comes to preservation of our size and our market share and our profitability. Of course, we want to show the specific space and how Renato was mentioning when it comes to taking back and the acceleration of our digital line with efficiency. This is just a demonstration of the graph since our transformation aligns when it comes to the outage of many categories which were not profitable. From trimester to trimester, we've reduced the size of the company to focus on profitability. Now we've shown that we managed to grow with profitability. Of course, we're talking about a gradual line reaching its highest number by the fourth trimester of 2025.
With 21.7% of growth, our general market share is set to 13.7%. Yes, there's room for improvement with a lot of discipline over profitability when it comes to this. Now we're gonna go over a short video so we can have an overview when it comes to the financial progress for the past couple of years, which is a pretty good résumé of what we've done so far. [Foreign language] I think that the big transformation of our model is not only about what we've been selling and how we are growing. We had this distinct separation over growth and profitability, and I think it can show how it is possible to grow with profitability.
Yes, the customer is the center of it all, and we've been transforming through our CRM and all the data and all the journey with our customers. We had 100% complete digitalization of our processes when it comes to store sales and e-commerce. We've been transforming our commercial model focused on capital allocation and discipline, which I think is pretty central in our commercial system, and making progressive advancements in our system, and of course, reaching sustainable growth. Of course, the beauty of this business is scalability. The more we grow, the better the operational ecosystem improves as a company for improvement. To reinforce, we have our commercial scale.
We have the central pillar when it comes to growth of e-commerce and with a positive margin contribution, which will allow us to advance progressively in our credit lines inside of physical stores with new suppliers, increasing the level of our ecosystem in a very good inventory level with all the other suppliers when it comes to the deadlines, which is I think a bit of our strategy as a whole, as you can see. Just to sum up, just to close in here, just to reinforce what we've been saying so far. You probably have seen it before in the morning.
Just to reinforce, when it comes to our leadership as a player, as a leader in market share in any omnichannel in Brazil, we just announced our strategic partnership with Amazon being a strong player with a lot of customers in a very strategic line, advancing one more step when it comes to being an omnichannel big player, 1P retail seller in a market. That's very good, another partnership coming along, which advances our leading strategy as a 1P player in Brazil. Of course, we have the edge of providing services inside a platform with all of our products being delivered by the company. We have all the customer's data and an incremental service.
Of course, when we closed the first partnership, we had, you know, the conviction of how the cannibalization would actually come along, that we realized that we had a lot more leads going on. Of course, it was a very positive approach. Of course, decreasing all the logistical issues, and of course, we have the opportunity to advance with other lines when it comes to products and services, complementing, which are gonna be pretty relevant to the marketplace. We remain being the 1P player, working on actually supporting the customer wherever he is. Thank you so much, guys. I would like to talk about technology.
When it comes to technology, I'm actually gonna call onto the stage Felipe, not only leading in our technology department, he's been actually being a leader when it comes to the transformation business. Technology is actually a part of all of our leverages that we have now. When it comes to credit line, appliance and CRM and supply, everything drinks from that specific source, and we've been working on the transformation when it comes to infrastructure and been bringing along new technologies to the table firsthand to the company, and of course, increasing our productivity and making a very good transformation process. Thank you, Jas, for all the work that you've done so far. We're gonna let you have the stage. Good morning, everyone. First of all, it scares you a bit, but it's all right.
I'm just recovering from an accident I had. Important thing is to be in here with you and to talk about this very important issue, which is technology inside our group. Just to give you an overview of what we've worked so far, we've been very strong in a platform that connects the entire intelligent catalog and a very strong base of customers and financial solutions and services and logistics in an integrated way, not only with our ecosystem that already works in an omnichannel, but also allowing us to open very strategic partnerships, whether they be white label brands and having the entire showcase with our partners with a very good marketplace and a full commerce, as has been mentioned by Fred before.
All of these technologies will allow us to connect to our partners and our ecosystem and be able to bring along all the capacities of AI, which is a great focus for our productivity and all the results for the company. Talking a bit, we have a few assistants for LLM inside our platform. We have the CRB Heckelmann. It is an app tool which is a navigation that comes along with our customers, supporting them in the decision-making of our products, and of course, helping them out in all the definitions that they have. Of course, it really works pretty well. WhatsApp has been integrated by LLM. BAH.IA, which is an AI assistant inside our store ecosystem.
All of our workforce, our digital workforce is connected on this LLM. When it comes to OpenAI and Gemini, our strategic partners are working with these specific platforms, which are pretty interesting. Of course, they have a pretty relevant usage of tokens. The most important thing is to bring a better conversion, starting from the moment that we are sitting alongside the customer and using these tools. This connection not only allow us to work with LLM when it comes to navigation experience, but we're bringing along a lot of the intelligence drive in all the other ecosystems. I'm bringing along a few examples in here. Our catalog, which is pretty robust, is pretty easy to access when it comes to intelligent solutions to make the registration of our items.
Of course, we're talking about more than 1,000 items per day when it comes to registration. We had another great conversion for item registration engine focused on product intelligence, of course, with more than 82% of conversion. Customization and which is the, I believe the biggest sphere inside the CRM on how to be more assertive, how to be more accurate when it comes to recommendations and bringing the best items along, having a cross-sell pushed up that exceeded more than BRL 3 billion inside of GMV and recommendations and with a conversion increase of more than 20%. Intelligence is actually bringing along all of these results.
Another partnership in a case with Google, not only in Brazil, but in a worldwide scale, when it comes to the efficiency of this implementation. When we talk about the user experience, I believe that our biggest focus was working on the conversion with more customization. Yes, we do not have any more static web pages. We started to actually have a bit more of a context inside the content. When it comes to credit lines, we had it bringing along the journey in a very simple way inside the stores, bringing along more than 60% of the sharing of the digital CDC inside the platforms, when it comes to the online approach.
All the payables platform, we had all the digital wallets in a specific options when it comes to the conclusion of the payment, when it comes to the credit line inside operation. The omnichannel is actually one of them. We had a 360 vision, as said, depending on the partner, we've worked. We can work in an independent way when it comes to the board. Talking a bit more of the construction of the technology. Of course, we have a team composed of more than 1,000 employees, independent CLT workers with more than 200 people actually working in the IT and the Flowxion. When it comes to the cloud computing, we're divided in more than seven journeys.
I believe the greatest focus when it comes to the year 2025 in the last years is to bring intelligence to this kind of development, because more than ever, we need to bring more performance and results to each kind of investment because we know of the real importance of these kind of investments at the company. When we talk about 55% productivity increase, which are gonna be the new features for each developer that we already have. That's pretty relevant. AI is actually helping turn out the new development of new products in the line. Moving along in 2023, we have six physical data centers in a very complex structure coming.
In next year of 2026, we have 100% environment actually situated in cloud environment, so we can bring more, even more productivity for the team, generating physical weight for this entire structure, which is pretty complex because we are a huge company. Performing in this movement, we had more than 30,000 key cloud assets, which is pretty important. I believe it's not. It's the kind of expenses that doesn't bring actually expenses. It brings cost reduction more than BRL 116 million in savings because of this development.
We have more productivity connected with the future in that sense. Talking about the entire drive for this transformation, we say that the data-oriented companies actually has a pretty robust data lake with more than 25 PB of data with more than 5K users, analytic users actually making use of the platform daily in a daily routine. Not only having all of them connected, but of course, we're still working with the AI. We had a very interesting case which, because back in the day, we had a lot of work reading all those reports and all the models, and then we plugged it together with Databricks, an LLM model, which provided us an international prize for efficiency. We had more than a week to bring out those reports.
In real-time now we have all the insights available. We had all the analytics from actually peer-to-peer actually. We had all the behavioral columns actually coming along. When it comes to store managers, and when it comes to the entire store governance, all of it was actually built with a partnership with Antrop and Lucky Box. All of our corporate data having the right scalability in lines. We had an AI excellence culture when it comes to efficiency and data culture. The entire capacitation, of course, all the tools available for them. We have more than 30,000 employees using AI tools. Of course, they've been using them in a daily routine.
Not only that, all of them through a platform are able to build their own agents. Of course, we help them out with all the training, all the capacitation. These individual cases actually help us to actually have a better measure of the metrics. All the AI tools available come very strongly to work with all the team, bringing more than 340,000 sales, of course, coming from year 2023 up to this day. In another focus point, because each automation point is actually pretty good to the client and to our customers and us, bringing more than 85% of efficiency. It's a bit more of the landscape of what we have of the possibilities.
I'm gonna go over a short video to synthesize all the structures. [Foreign language] I just ended up actually running along in here throughout the time. Just to sum up, we're really working with an integrated platform, investing in efficiency and connectivity. Of course, data-oriented processes. Really believing in a new user experience and a new generation. Everybody is talking about, you know, e-commerce and AI commerce. We are really integrated with all those aspects and strengthening our partnerships with Google and OpenAI and, you know, among others too, so we can actually have a progressive growth channel. Because we know it's not gonna be embedded in all the in our journey experience. Of course, we have a lot of potential to evolve. Of course, playing as a channel, as a future channel inside our platforms and our products.
Of course, we are gonna have the brand orientation asking for Casas Bahia Group. We're gonna have the entire fluidity inside this, and of course, we have the investment for that. The most important thing is to always build all of this having a focus and results giving better numbers to the company. Thank you, Renato. Thank you, Jaspeen. As you guys see, when it comes to transformation and technology, we are talking about a real thing that's real going on now, and the need for us to actually speed up a few actions. We have the privilege to have a very robust data platform, a robust credit line, which makes for the perfect laboratory for all the technology platforms.
That's why we have so many global cases, Google, OpenAI, Databricks, and all the other platforms that are acknowledging our company. Of course, they make the right investments. Of course, the results coming along, and we are able to show you guys. Now we're talking about a bit supply and pricing. Flavio, you can actually come along. Flavio has been strengthening our department in a very good thing, which is a nice way to a nice opportunity window for us to be able to reach a better position so we can actually harvest better fruits and have better information down the line and better decision-making opinions.
Of course, we're gonna have better drives, so we can actually have a rupture in the sales department because, you know, inventory management is something pretty complex. There's a lot of opportunities down the line to renew our inventory and increase the products when it comes to inventory management. Thank you, Renato. Good morning, everyone. It's a pleasure being in here with you guys. Now I'm gonna share a bit with you guys of our strategy and our main pillars at which we are developing when it comes to the enhancement of supply and demand pricing. I'm gonna start by supply.
I'm gonna show you a bit of the entire evolution, and to do that, I'm gonna show you a short video so we can have this presentation on a more simplified way for all of you guys. Can we play it along? Yep. [Foreign language] All right, guys. Just to make up for a few concepts, of course, we're talking about a totally integrated department, but of course, with our stores and our platforms, we have a level of capillarity in a very ample way. Of course, we're talking about at more than 1,000 stores and distributed in 23 states. We had this commitment, what is the increase of efficiency when it comes to capital investment.
It brings a lot more availability of products in our channels and our stores, and it will reinforce a sales increase. For that to happen, we had three main pillars in all of this. The first one is gonna be the regional sorting of the product. We had a review of all the store cluster and the entire review of the regional sorting of each specific store, and it brought us to have a more aligned mix of products. We had a sales curve on the rate of 95% of all the regions, and of course, we had an increase of conversion. We managed to enable the second stage because of that, our second pillar, which is the new prediction and demand AI platform.
We had the need to improve the accuracy of the ruptures of the actual to have the decrease of the excess in the specific store. We had this AI model utilization now, and adding inside the model the seasonality and regionality and suppress the demand, which is a bit more robust than that demand. Through all those calculations we made, we had a very good evolution from SKU in each store when it comes to accuracy, which enabled us to create a new supply engine, supply drive. What does it do? It leads another dynamic level to all the parameters that we actually have inside a platform, which is more agile and efficient. We had all the supply, the daily supply demands from...
Rebalancing up inventory in a more dynamic way. It brought along, of course, new very positive numbers with the availability of 20% of store space and a reduction of 23% of store dispersion when it comes to inventory coverage, which is pretty important. Moving along, I believe the second top is gonna be the pricing. Now I'm gonna show you a firsthand video so we can have the evolution an overview of the strategy evolution. [Foreign language]. All right, guys. Inside the concept of pricing...
The first pillar that we have available here, we're talking about the pricing regionalization entirely, of course, it's been boosted by AI, and it places the balances of the, you know, the micro region balance to bring, of course, better profitability. For this to work, the first pillar was to understand the positioning, the market positioning. To do that, we have to, you know, twofold a strategy. I believe that the offline would be a robot to do the best pricing of the market. On the offline, of course, we're talking about more than 1,000 stores and distributed around 23 states and, you know, more than 500 cities. How do we do that?
Along with Fred's team, we created a weekly system for data capture and data collection with our competitors so we can have continuous monitoring, so we can have an idea of the positioning by category of the most relevant items by city, and it brings us a very good relevance for decision-making aligned with the company strategy with a lot of agility. Of course, all of these adjustments are made in a very dynamic way. For this, we had a new pricing drive, and this new drive is actually AI oriented. Through this, we were actually able to drive all of our project to have a better optimization, data optimization performed by it.
Yes, we have a very a robust drive when it comes to the pricing. Third pillar would be the omnichannel pricing, in which we need to understand how the positioning is actually reflected upon the omnichannel concept, which is a result optimization when it comes to channel, a better integration and pricing optimization bringing competitiveness along in the market. I would really like to reinforce a final message in here in representation of the two specific areas, boosted by AI implemented in the business.
We had the commitment with capital allocation investment optimization, of course, have to have in a better on a daily basis through an AI and incorporated AI in our decisions, always taking into consideration all the data to strengthen the agility and decision-making issues, boosting the availability of our products and profitability in the business. That's it. Thank you so much. Thank you.
Thank you, Flavio. In summation, the supply area, we have a great gain with this regionalization because we can optimize the inventory. We have to optimize our showroom, which is the largest in the country, even for other sites and sales channels, and this will help us with the revenue. We look at the regionalization, it's not something that the model evolved. The system wouldn't even allow us to have individual pricing per store. This is very relevant because it was very difficult to transform our system. Remember what Jaski said. When we look at that, from suppliers and physical data center into the cloud, we have the whole transformation of legacy, so the future transformations are also easier. We did a very, very powerful work to get where we are and be able to have these regional gains.
These cross-references is important because sometimes the product promotion would damage a possible gain in another area. Using the product that give us more return and rather than sales, it makes a huge difference. It's a better EBT nominator looking at the ROIC for invested capital. Thank you. Now we're going to talk about the new leverages for financial solutions, and I'm calling Vital Leite. He's been leading this structure for a while, not just the customer credit, but services, insurance, and the whole infratech and banking that we have supporting the company. This is probably the main engine for value generation, and the journey is amazing. Thank you. You have the floor. Good morning, everyone. Thank you for your presence here.
It's a great pleasure to have you all here, and yeah, it's a great pleasure to be able to share with you our financial solutions and what we see of opportunities for the next steps. First of all, we need to have a reference that this financial solution ecosystem is here to extract value for the Casas Bahia scenario. We have 116 million clients and 2.4 million suppliers, and that's why we created three main blocks. Credit, where we try to have a wide portfolio to capture value in all the journey. Services and insurance, where we generate convenience and security for their customers' daily life, be it with us or other moments in their lives. Finally, the InfraTech arm, where we try to create solution for these B2B system for Casas Bahia.
Casas Bahia as a consumer or our partners that also need financial solutions for B2B, and we are maximizing our ecosystems, paying attention to all these opportunities. We begin with the client credit. We have seven great credit solutions with different levels of maturity, and I'm going to look at each one of them during my presentations in the next slides. We'll begin the great driver for digital transformation and growth, which is the client credit line. It's important to mention this in looking at our history, because when we talk about consumer credit, it's a long-term journey, and this is never a 100-m sprint. This is at least a half-marathon or a whole marathon. When we look at our story, we've had a consistent journey.
In this graph, you can see the production level, the Buy Now, Pay Later, clean credit. Last year, we reached BRL 10.2 billion in production of our customer credit, very robust product line, and we doubled our production on these over the last few years. Very few market players can create clean buy now, pay later credit in this scope. Some medium banks can operate with similar portfolios for this type of products. Above all, more than moving forward is changing the layout. We moved ahead, looking at operations and stores, but we also diversified. The digital product, it's our proprietary. We built this product around 2021 with the stores. Then now we reach 10% of everything that we finance online, which is historically generating BRL 1.6 billion in credit.
It's a very profitable solution, and it goes beyond our limitation for brick-and-mortar stores in some areas, and this maximize a lot of our services. As well as growing is to keep the non-payment stable. Non-payment is non-negotiable. We want to grow and overall our conversation, we want to have sustainability and long-term. The non-performing loans is a pillar in our decisions, and we have six years of non-performing loan. With world precedent, we see a very controlled non-performing loans, and we know that that's not easy. It's a daily life with very consistency. When we look at this market, we see competitors in the same situation. We can see how distressing this is, especially during the pandemic.
We are in a moment of the market that is larger than the pandemic, which was the largest numbers until then. We have the margin of the product with the interest, less loss that is extremely healthy. In 2025, we beat our historic numbers with a historic margin. We left from BRL 1.5 billion to BRL 3.2 billion, and the non-performing loans is very stable. We reach BRL 1.6 billion generation or liquid revenue. When we look at the NIM, we can see that is very robust. When we look at the slide, we can see what is behind this driver. We decide in a very significant way this restructuring, and this will be fundamental for the next steps and the next growth cycle for this.
In this slide, we have the whole strategy for the new generation and data-driven and AI models. Casas Bahia customer credit has four important pillars, and that's where we structure ourself. The first one is the statistic modeling. We have 27 production model with more than 4,000 variables, 45 combinations per channel, and this give us the capability of approving BRL 50 billion in credit for approved credit. We have 9 million clients using information that are internal information without looking at the market for this information. It is a type of credit that the market cannot assign to these customers. Customers with more difficulty for getting credit, and history, and profile. This is a proprietary asset and one of our main differentiators. We have the model creation that is very quick.
We have a time of 3 months for the development of the model versus a 12-month model creation, and we are very excited with the next generation that brings a KS of 10% more, and will open more growth for us. Contrapartida, we have customized policies for this new generation models. We have per channel, per product, per segment. When I look at the cell phone is a higher risk than the furniture, and our policy has to consider this distinction. We have customization, behavior scores. The third pillar is the pricing pillar. We have customized models and customized policies by region and channel, and we have a pricing with more than 3,000 combinations to give the return in profitability for each internal area. This makes us. We have an example of the new segment.
I'm always having champion challenges at the same time with a number of policies. If you look at new segments, our four main segments, you multiply by four, I always have. Even though I have a champion policy, 48%. The red 10% are the next policies that we will be testing. We have the 48% for the performance, and we have to think like this with, always thinking what are the next steps are extremely important so we can certify the growth in credit and keep the sustainability. The third is the journey, the retail credit, because the good client has less tendency of bad journey. We went for a 30 fields reduction for one field, only with the social security in Brazil.
It's a 98% automatic decision with facial biometrics, secure digital signature, and the management of the payment installments in our banking app. Our journey pillar has evolved a lot. Last but not least, is the predictability. In credit, even more important than what we will do, it's when we do it. That's why we need the predictability of our portfolio, and we are able to do projections and predictions of non-payment in a very, very firm way. From the moment of the production, I am producing this month, I can predict what's the non-payment situation in the mix of risk. The other sides, like PD 15, 30 are reaching the 30 M2, and I'm already looking 30 M2, which is two months after creation and concession.
We are looking from March into May, and predictability is something that has evolved. Our ecosystems is about the solution engine of fiber connected to the best bureau, all these ones that you can see on the screen, exactly so that we can have the best decision for our clients, consumers. Looking at our pilot factory, we are always thinking about new partners that can add our origination. When we look at the next steps for the Buy Now, Pay Later or consumer credit, something that we thinking is knowing the population of the region, and we do not have that barrier. We operate credit in 92% of the municipalities of the country.
When we look at geographic form in a very capillary way, when we look at the profile of our client, when we think about future opportunity, we separate it in three main personas: retiree 50+, 30-37, and employed 30-37. We have 70% of our profile, 2.3 million consumers. We look at the active population that has this profile. We talk about 64 million people that have the profile where we can tap. We right now only reach 3%. Look at the potential growth of this. We look at the sensibility, and we move forward in this 3% over the 64 million. We're 2.3 million clients, and we produce BRL 10.2 billion. When we move ahead, if I reach 6%, I double the revenue.
If I reach 10%, BRL 34 billion. There's a clear avenue for growth. We think about 10%, 9%, 8% market share. It's not something so unfeasible when we look at about the segments that we are present in. With the line, it's over, white line is over 30%, and so on. It's reasonable to see that we have a lot to move ahead with, and we have clear leverages for this evolution. First, accelerating the customer credit, which is the whole company. I apologize, just a moment. It's a program that we created for the whole group as a strategic movement where the customer credit is the center of the business, and this is the cross goal for the whole company.
We have advanced segmenting by micro region and store that we need to customize even more the credit creation, where we select the variable that is defined by region. A journey of credit creation through AI. You get the client with a journey through AI. We have the sales journey, and we don't have the digital AI-driven sales journey. This is a new avenue to explore, especially for the clients that have 50 BRL pre-approved credit. Finally, the creation that is clear with customized offers for Buy Now, Pay Later marketing and CRM. With that, we can see very clear the great avenues for us to move forward with that. When we look at the second credit product, the credit card, it's also a powerful foundation.
We issued 1.4 million credit cards with BRL 15 billion for the growth of revenue for the company. We doubled in comparison to the few years before. What does that mean? With the client base, 1.4% remains 1.2%. We have new leverage to expand in that. We have a sensitivity analysis that 1.2% becomes 1.4%. We're talking about doubling the cards, and we still have only 2.3% penetration, and that could bring an increase in revenue about BRL 30 billion. When we talk about that, it's about BRL 28 billion on the credit portfolio for credit cards. We have clear leverages for this. First of all is the Pontofrio clearance with 119 stores that are very powerful with a higher average ticket.
We hope for 140,000 cards a year from these stores, and we'll begin to produce in Casas Bahia ecosystem. AI, also in activation and use. We still don't have that for the credit card. A frictionless journey, so the journey can use only store biometrics and hire the card and gain in share for new areas that are not occupied. We are creating a strategy to expand both geographically as well with a great potential. Another product, it's a supplier credit line. We begin to operate with this in a B2B vertical process where we have FIDC and the operation bank operations operating, and we have BRL 22 billion of payments to suppliers a year. There's a huge opportunity to operate credit for them.
The analysis show that if we operate 50%, 10 billion of this volume is almost BRL 900 million of revenue for this line. It adds value for the suppliers and investors. Buy Now, Pay Later is our credit intelligence. It's that we are bringing to other partner ecosystems. The idea is to bring the credit to other environments, optimizing information in our database, giving the credit to our client in buying other industries. It create a transparent checkout with more approval indexes, plug and play. We are talking with great players, be it retailers, construction, tourism, and marketplaces. Here we make. We have an exponential growth of the market and also profitable solutions.
We are officially launching the first player that we will have in this partnership, which is CVC Travel Agent as a funding and financing for traveling. This will expand our credit market and will bring this profitability that we are following in this business. The last one is the private retirement fund loans with BRL 120 billion yearly is a very powerful market. We want to launch this in April 2026. When we look at this market, look at how powerful it is. In the market of 2024 is already a market of BRL 99 billion a month, so it has very little risk. It's a credit with a lot of reach. When we look at our 116 million, many are employees and we have a great opportunity here.
If we look at this for payroll loans, we're talking about if I the 1 billion, if it's 3% of a business, that can bring BRL 6 billion in this production. We even have 5% of the market only, with a very small number. These are the leverages, so store checkout, app in the banQi, in the stores with AI conversations and operating through FIDCs with our investor partners, which is the MO that we already have in the company. The last two powers, personal loan and installments, and we have Casas Bahia ramping the product, and we are developing channels and with a very promising future in our ecosystems. Personal loans we are operating with intention with FIDCs and partners, and we have BRL 400 million with our 60% margin.
Very profitable, and we only have a 0.1% penetration, so we have a lot of opportunity. The consumer purchase pool as well. When we look at the second pillar, which is the service pillar, our service portfolio is very broad, complete. We have extended warranty, life insurance, home insurance, a theft insurance, some furniture for any moment in their lives. It's an ecosystem that we increase the products and the revenue. We had BRL 2 billion revenue in services. This is a very significant business. When we look at the market penetration of these products, how many came from the credit services? 77%. We see that the customer credit is a driver for a number of business. If we were an insurer fourth for affinities with official SUSEP data, Casas Bahia is BRL 1.7 billion.
We would be the largest insurance company in Brazil. We see here how important this ecosystem is if we can position ourselves properly. Looking at the sensitivity analysis that I did for the consumer credit, if I expect some kind of growth with the consumer credit, we can see that the service will also grow along with it. We have a potential growth in a significant way. Well, our final pillar, InfraTech. It is a pillar where we have a proprietary structure that reduces cost and ecosystem control. We have a number of solutions here to guarantee the control and the security in unstable times for fintechs in the market. Proprietary structure for banking penetration is a great business differential, all with our own licensing.
If you're looking to have the payment management, we have direct credit societies, so we can do any type of credit, and we are going towards developing for this license for SCFI, which is the credit society and funding and investment. When we look at our banking penetration system, we already did that to 24% of our Fintech. We have a potential of 76% opportunity to reduce, expand and maximizing use. It's an operational process that is expanding. Core banking for payment, credit and promissory, and we have a lot of 99% opportunity in core banking with this solution within the ecosystem is a rollout objective. We also have the merchant acquiring, and it's BRL 30 million for the TPV.
We have BRL 14 billion for that, and we can maximize that and reduce the cost for the company through this line. We have the investment pillar that we begin to operate as an investment organization and the funding capturing. We can operate with the capturing of funding of sales and apps and the banking penetration and session for the fund that is of financing that sale. When we look at these final considerations, in the same slide, everything that we talked about, the opportunities and the idea was to show all the products that we have. All the products are operating with a lot of room for growth. When we look at 116 million clients, look at the client credit, 2%. Security insurance and services, 1.5%.
You can see all the small share that we have. The more we move ahead, three, four, we have a significant expansion for our contribution. We have a clear avenue with a well-designed plan for us to continue to move ahead over the next few years. Considering this new moment of portfolio expansion and ecosystem for finance, we need a new brand. We began to with the banQi, and I like to introduce you the new financial imaging. For more than 70 years, Casas Bahia is part of Brazilian people's lives. 116 million clients. In 2020, we had banQi to expand credit access. Today, we have over 7 million Brazilians that have bank penetration. With a robust portfolio that is integrated to retail.
We are moving with a complete ecosystem, repayment, credit, loan, and insurance and services, and we build a solid business. In 2025, we have a turning point with a liquid revenue of BRL 37 million, a landmark that shows how mature and sustainable the model is. Now we begin a new chapter. In 2026, banQi becomes Casas Bahia Pay. Incorporate the strength of a top-of-mind brand. More than a change of name is the consolidation of a financial ecosystem that is more and more integrated to retail. If Casas Bahia has always helped Brazilians realizing their dreams, Casas Bahia Pay expand those realizations. Welcome to the new age of financial solutions with Casas Bahia Pay. The complete dedication to your dreams. Thank you all. That was excellent.
When we look at this consumer credit, we see there is a macro challenging environment. We are still growing with BRL 10 billion in 2025 is no peanut. It's very powerful and relevant to when we compare to other market players. Second, we don't prioritize growth. We control the non-paid loans, and we have control, and we are disciplined. Third, we have a great potential for growth, but for all the finance aspects, insurance, credit, services, and so on. This will monetize the platforms. I would like to call Elcio to talk about something that was not talked a lot, but it's something that is very important, the tax reform.
It's important to shed some light because we see important leverages for our business, for competitiveness, that we have the operational execution, and in consequence, we will bring some benefits in mid- to medium- and long term. The tax reform is being discussed a lot in the country, and it has been becoming more and more important. I would like to focus on the retail and our business. It's clear that our main point here is the tax reform is not a tax change. What we're talking about, it's a structure change in a way that the retail will operate. We have the tax reform that will bring the simplification of the system. We will eliminate the distortions and judicial arbitrage that happens in the country. It will bring the taxation to the destination.
It will introduce a split payment context that will reduce the informality in Brazilian retail as we have the tax collection at the moment of payment. We have a huge impact on the reduction of informality as well as on the revenue and the structure of our retail.
Changing a bit of the logic of all the companies as a whole, we're always, you know, used to taking decisions based on the fiscal incentives. Of course, what will prevail are all the decisions for an economic concept. It's always. It should have actually been this way. We have three specific impacts and actually changing a bit of of this competitive retail market concept. We need to have a balancing of the pricing. When you eliminate all the incentives and the fiscal incentives, of course, you're gonna have different prices of the online platform. Essentially, we're gonna have the same profit. We have a crucial difference inside this online platform and the physical one.
Because of the digital-physical differences, you're gonna have an approximate with the pricing of the physical stores and the online platform bringing competition to the field. At the second stage is when it comes to logistics, we're talking about, you know, economic logistics, not on a physical point. Clearly in our company and with the dimension of our logistics, we make, you know, the product actually, you know, run around just because of our physical efficiency. From now on, we will be able to follow with a new mesh, a new network when it comes to the development, a new scalability, because when we talk about, you know, logistics is actually one of our main pillars, and we have the items, of course, we know how to play this game pretty well.
We need proper scalability to have efficiency, and we possess that leverage. Each time, we're gonna have the edge in this kind of play, and of course, we're gonna have the financial impact when it comes to the cash flow and of course, every market, and also having the reduction of informality in this level. I'm gonna go over, have a quick overview of how we are actually positioned and ready for this, for this reform that is actually on its way. Of course, we are still working, when it comes to the system point of view, to completely adequate it, having all the information actually for the government organs. Of course, our physical stores tends to get more relevance and more strength.
There's a natural trend comoving along in a pricing that is making the online platforms have an advantage. The reduction and the balancing throughout the years, and of course, having the complete equalization due to the reform and the elimination of this fiscal distortion of pricings. When it comes to logistics, I've already mentioned it. When we put it all together, our focus when it comes to, you know, brick-and-mortar and, you know, the entire logistics when it comes to the intelligence of pricing and the sorting, which was mentioned by Flávio, all of this operational management is giving us a good position. Of course, the reform will actually shake the tectonic plates of the market.
We are actually anticipating all these steps, and we're gonna be able to position ourselves having better relevance on the adaptation of this specific process. The final item would be the split payment, bringing any impact on cash flow in here. Now we're gonna have a fiscal credit organs, of course, having around BRL 3.3 billion has been turned into CDC-CBS, which are gonna be credited at this moment. Relatively speaking, the entire market is gonna have this impact in a very relative way. We're gonna have all these credit lines available to make an upfront at this specific stage. Of course, it's gonna impact everybody.
When it comes to the point of view of cash flow, we're gonna be able to monetize the expenses if we're gonna have any impact that are they're gonna be placed to the whole market. I believe that we are well-positioned. We really understand what's gonna happen, and we are working on every leverage inside our business to be well-positioned in a very strong way with the tax reform. Moving on to the next chapter, having a quick pause, advancing to the final leg of our stage, we wanna talk about capital allocation and be able to stitch together everything that we put so far for the initiatives and the leverages that we have and how we're actually gonna see this company as a whole.
We talked about all the fundamentals when it comes to the entire five layers and the end-to-end type of program and all. Having a company actually look into the entire concept. We have without having a you know all the financial bureaucracy but be put in a more simple way to the entire company. Then we have the final two blocks. I believe Renato is gonna go over briefly the operational decision when it comes to the layers from one to five and the real allocation of capital, how we're gonna make the real investment and how we're gonna see all of this stage. When we move in here, we obviously. This is our main agenda where to invest each you know set that we have available in the company.
We can actually pick a specific product or a supplier, another category. When it comes to a sales channel, we have many aspects that need to be considered. I believe that the most important point in here, obviously, of course, which is pretty easy to look at. What is the commercial margin of each product in each sales channel? If we have enough penetration, of course, all of this we already know. It's already within our hands. We need to consider the second part of the equation, which, you know, how much am I actually gonna need to invest this kind of in here. When I have a denominator side, this math, it's not a trivial math.
When I have the, you know, the inventory, when it comes to accounts payable, when it comes to receivable, which is pretty real, we have in this lower part of the slide in here, three specific simulations. Just that we can show the margin difference of how different it will actually be and eliminated by the difference of by ROIC. We have this 29% 23%, 39% scenario. The total margin that we're actually talking about when it comes to credit line and penetration here in services, I have a 68-day deadline for the 116 payment medium deadline for this. Of course, the working capital delay is actually set for 25 days.
When I look at my ROIC, it will actually give me 8.5%. I have a value destruction when it comes to the company investment. This is just an illustration of how much actually working to the gross margin is not an efficient and very simplistic point of view. Of course, it will actually destroy our value. We need to optimize these processes and many lines to have a better margin, sometimes a bit better, sometimes making a better asset prioritization, having a bit an optimization. Of course, I'm gonna have a better ROIC than compared to the other lines consuming much more capital. Now we're gonna move on to the effective allocation of the capital of each specific segment that we have invested.
Now we have talked about the three components of the cash flow in here. We had 121 days of this specific project with a very strong adjustment of the inventory. First one, but this discontinued categories and a reduction of the inventory of the oldest products. Now, coming back to the second semester of 2023, we afforded it the maximum level of stress of this machine without any ruptures coming along from 130 days. Of course, making a level of 190. Of course, we would not be able to support this entire process. We manage to have a test, testing it out until we reached a more stable phase near to 90 days.
I believe that the next stage from now on is to be able to optimize our inventory. Maybe the partnerships that we've been working along with with MELI and Amazon still be working with the same inventory to have a more competitive line when it comes to our market. But we have a feel of a deficiency. By actually combining all of this with all the initiatives that we have, distribution lines and supply and distribution rate, and being close to them, being close to the product on a competitive level, to place them in the right place to have a better efficiency behind it all, to have a trend of inventory increase for the working capital.
When we talk about specific item, it's impossible to actually be you know setting up with this. Of course, we're talking about a very huge deadline. Yes, we have a lot of leverages to increase our distribution because there's a lot of room for improvement, and we need to develop a new, better model to adapt to our complexities and when it comes to the entire clusterization of the each specific store, so we can able to operate in this level without being affected by the structure level. Yes, we believe that this trend will happen, and we will be able to deliver in a very progressive way.
There's no you know change overnight and a constant evolution when it comes to bringing all these numbers in a very consistent way. When it comes to all the suppliers, we had a you know deadline of 100-120 days. We had this event back in January 2023. Our competitor and of course reducing a credit contraction in a very strong way, whether it be from the suppliers or the insurance holders. Of course, it was a very important decision that reduced the deadline for the payments for our suppliers compared to the big players. I believe that was the first great movement that we actually faced when we moved in, and that Renato actually mentioned.
The Chinese market moving on and the other players moving to our country, in which we were able to deal with better deadlines. We made an equalization, a proper equalization of the payment, gaining an average of 120 days. What's gonna come from now on? With all this transformation going on, we wanna take back with all the other, traditional suppliers, at least at what we had back in the day, if not more. Of course, we're gonna be working hard for that to happen, but we need to return to an initial stage and a penetration of the new players because they need to keep on advancing, whether it's inside our own portfolio or advancing on the payment deadline.
We see a clear trend considering, of course, all the seasonality that we have, but a positive trend in our inventory and operational levels and suppliers, of course, having the current scenario. Just to give you another point of view, which is pretty important, that we haven't been talking a lot. If anyone could help me actually advance on the next slide. We have accounts payable in here, and generally we have an anticipation of this process. The original deadline for this, because that's what counts, because when I make an advance of the process, of course I have this financial cost, and we need to have an overview of the big picture of the entire situation.
We have the financial cost and operational level take into consideration, you know, the original customer. We have this cash flow inside on a complete level, and we see a reduction curve coming from the last couple of years, presenting a bit of instability when it comes to 115-120 days. That's the kind of concept that we need to work on. Of course, we have the financial costs and again, Selic taxes running along. That's where we need to actually make a gradual improvement when it comes to inventory or to suppliers. Of course, when it comes to customers, it's a bit harder to work with them.
Maybe if we come, you know, with a project of installments of, you know, eight installments, maybe 10%. Yes, it's a bit more complicated when it comes to industry and how the customer is actually gonna pay. Of course, we're gonna have to respect them. Of course, when it comes to the tax rates coming along in a better situation. We're gonna be working more and more in inventory management. When these numbers go down, when it levels up efficiency and the suppliers coming up. Of course, we have the gain of levels of customers and a funding that we have when it comes to installments. The marketplace have a funding for eigh working days, so we have, you know, better deadlines.
The relevance is actually being contributed to reducing those numbers. That's where we're bringing a good potential to reduce in 10-15 days terms in a very substantial of them when it comes to working capital liberation for the company. Moving on. For the next slide, please. Here we're gonna have for the CapEx. We're talking about cash flow here and CapEx, which is again the second pillar. We have a reduction of the first year, but at year 2022, we were pretty strong in that sense. Now we're leaving it on a stage, not you know, a decreased one. Of course, we have better discipline and of course we have a lot of technologies coming along.
We think that we are. That is a part of the structuring of the profitability of the project. Moving on to the next one. In the other capital allocation leverages, of course, a credit line that we have available. Of course, every cent would be the working capital inside, you know, every specific department of the CapEx. Of course, we have the other leverage is still under development. Starting from, you know, from now on, we're gonna be more stable to work with this new leverage, which are the suppliers and the stakeholders and a credit line that we still did not advance on that line, and we did not monetize on that part yet.
The final point is to every cent that we have available, we have the decision-making distributed along CapEx, our inventory, our credit lines and accounts payable to accounts receivable. We have a lot of room for improvement to actually increase our credit lines and to be able to have a better supplier relationship. That's why we have a lot of conviction of the expansion of our return. Yes, we have a last chapter coming along, so we can open up for the Q&A session now. Moving on to the next slide. Now we talk about the path to profit. Basically it's just, you know, the summing up of everything that we've seen so far. This is just a sum up of how the company will actually reach profit.
When we talked about the entire leverages movement, we talked about the main pillars that will sustain operational management, which will bring more sales conversion, cost reduction, expenses reduction. Then we have a few opportunities along the way which are pretty relevant to our company when we think about the usage of AI in many fronts, in a very robust CRM, in a more customized way, which will increase sales conversion and increase our capacity to actually get the better capturing from the client. When it comes to the financial results. We just performed a balance of renewing in the spread that we're gonna have available.
Of course, unlocking other leverages, just like the assets management, which will bring better capital to the table, having a better liability management, stretching the spreads, of course, bringing better result along the line. The third pillar, which is operational leverage. When we talk about, you know, e-commerce growth, and not only in e-commerce, but our physical stores, this is bringing a nominal additional margin. You guys always talk about, you know, the raw numbers, 30% in that case. How much am I really bringing in terms of cash I'm bringing to the company? For the dilution for the G&A, which is pretty relevant for operational leverage. With the macro situation of the way that it is, we're not gonna actually speed it up.
We're not gonna keep the company as it is. Of course, we're gonna increase operational efficiency and bring operational leverage at that level. It will also bring a gain in the specific last pillar, which is the penetration of credit and services and other income sources. You know, we were just talking about the media back in 2023. It was nothing. In 2025, we've made a profit of more than BRL 200 million. Of course, we need to increase those numbers when it comes to credit lines and the digital platform, and of course, the physical stores are bringing actually a better penetration of services. We have those lines coming along.
When I make the credit lines increase, come as a consequence for the other financial services to bring a better margin. All of this bringing, you know, better definition when it comes to strategy. The solid culture to bring our consistency, we will be able to bring tread down this path to profit. Of course, it's not gonna come overnight, so we're convinced that this will actually work out for everyone. The future insight that we're gonna have. Moving on to the next one. I'm not gonna repeat myself. We're just gonna go over a bit of our strategy to be the greatest 1P player.
I really would like to bring a bit of the overview without, you know, a guidance and numbers, but how we're actually gonna be able to see the company in the future. Here's a GMV model at this specific dimension of BRL 44.7 billion . The growth comes from, as you can see on the illustration and graph below, that we see on a short-term business in the next three years, a growth of the e-commerce platform. But when it comes to the physical stores, which is pretty relevant, and look at the GMV indicator, which is pretty relevant. Of course, it's gonna have a better profitability indicator in the taxes.
I have the operational constant here that the growth of the margin. Of course, I'm bringing along financial solutions having additional margin, and we have the total GMV in the final eight. Of course, we have other business entities like other services for third-party suppliers. In-store share of our in terms when it comes to holding so. Now looking at the EBITDA and looking at the company's GMV, that is a reflection of our EBITDA, which is set from 8.8%. Of course, it's pretty. Of course, we want to put it in two specific digits of percentage. We were pretty skeptical about the whole thing. Now having a bit more of a consistency in the process, we're bringing along with the same thing. The gross margin.
Of course, having a bit of commercial scalability, bringing a bit more advantage to our fleet. We have more suppliers, of course, competing for the same market. I have, you know, more service lines that would give us better credit lines. I also have a sales expansion in all those stores and productivity along these three years. When we talk about, you know, open store releases, of course, we're not gonna have anything related to one thing to another. Yet our expansion will be given only after we have a robust cash flow and have a more macro situation and a more than 200 cities in which we're aiming for our expansion.
For the GMV, we have a greater impact when it comes to operational leverage. We're talking about increase of our logistics expenses, but the operational leverage is the most paramount topic inside a G, in a project contributing for a stronger EBITDA margin when we look for the years ahead of our company. Moving on to the next slide, we need to illustrate what's actually happening to our gross margin. Before the tax is moving in and the reform actually coming along. The first block is actually the financial results. With everything coming along with this new balance, having the pillar alone would make the net profit a positive number and a very reasonable coming along.
All the breakthroughs for the gross margin and G&A will make the company become a very good number generator in this specific lane. My final point of view, my final take on this, when we look at this, you know, believing that the entire you know Excel sheet, looking back at 2023, with a lot of challenges ahead of us. Of course, it was pretty hard to make a profit. We would actually look at a scenario in this. You know, we would look at a company that of course would generate a bit of profit, but to generate value, it was a completely different story.
When we actually surfaced and on each opportunity that we had in the horizon, I was convinced that this market, given that, you know, the retail market is not an easy scenario to collaborate and invest in. Of course, there are a lot of opportunities online. We're able to get value generation with a good spread, and then we're gonna create a very good case scenario. I really would like to thank everyone inside Casas Bahia Group and the support from our stakeholders and our council members, all the board members, all the stakeholders, investors, everyone, the customers that have been along creating the story and supported us in a very incredible way and allowed us to perform very harsh decisions.
We had very quick results over all of this. We had this conversation, internal conversation that saying that, you know, it's pretty hard to actually build things up, but pretty easy to actually make things come along. The turning point shows us really that we have a quick fix on the specific circuit. My conviction in here is with a lot of discipline. Discipline is pretty important in this specific scenario because any deviation will actually make things go down. If you have consistency, if you have, you know, this thorough pursuit of this objective without, you know, jumping up along your horses, you can actually deliver very good results in the long run. Moving on to the next slide, please.
If we could open the session for the Q&A now. I would like to have all the executives from Casas Bahia Group on the stage so we can open up with our Q&A session, so we can actually have a deep dive over the topics. Or if you have any other questions related to any topic that haven't been managed by one of our directors. Because normally, these guys are actually working their asses now. To bring them over to the stage and be here is a very profitable opportunity. Thank you so much, everyone. Thank you so much for your participation and presence. All right, guys. Let's start with the Q&A session now.
I would like to, for the ones who's to make the questions, please have a quick introduction so the entire team will actually be able to know you and go straight up to the question. Any questions coming up? Pedro, yeah, I believe you're up now. Pedro Pinto from Bradesco BBI. I would like to thank all of you guys for your presentation. It's pretty cool to see that we remember the presentation that you guys had back in 2023, and it's pretty cool to see all these three years of evolution. Congratulations to everyone. I have many topics to approach, but I would like to strike two specific points in here so we can leave space for my other colleagues to make their questions.
The first one is I'm bringing two points together. The concept of ROIC that you guys are actually bringing to the table is pretty interesting. When we get this discussion along with the topic of actually having better working capital working in a better way. You said it, when it comes to the market partnerships and the marketplace actually increasing their operations, of course, we have the embedded take rate inside the process. I really would like to understand by the time that we have, you know, the proper share inside the total mix, how we would actually get, you know, the proper image of how the concept of the entire ROIC institute would actually be applied out.
Last instance, I believe it's actually gonna depend on the answer. You have a limit target of how much the penetration can actually have a GMV penetration. Strategically speaking, how do you guys actually think it out? The second aspect just to make a connection. Since you know the entire journey up until 2019 up until 2023, maybe Elcio can actually answer me in a better way. We would always strike credit monetization as you know counterbalance as a burden on a labor line. I believe that you guys are pretty you know. You guys already overcame this kind of pain. I would like to see this kind of understanding and how you would see this concept in an overall situation.
Thank you, Pedro. Well, the first question in here about the marketplace ROIC and if we're really gonna have a limit available in our line. When we look at the big picture of the marketplace, we have a contribution margin or the profit for with pre-tax in here. It's not the best margin that we have in the past in the last year, but it corresponds to half of actually half of all my other sales channel that I have available. Of course we're talking about, you know, the concept of demand the profit. It. Yes. It's not even better than what we had considered before. If I increase 1% over the price, it.
I'm not gonna be lose a bit of sales, of course. It's all related to the strategy between sales and competitiveness. If you actually take the action of being the best a pricing player, or if I'm actually a bit more expensive to have difference in specific degrees. We have a life creative and value creative lines in here going in the marketplace. When we've been managing to have a better take rate, which is pretty similar to all of the other customer acquisition lines.
When you have your own channel, you know, when we talk about Google Shopping, CRM or other affiliates and other leverages that we have available to bring our customer to our own channel, our own legacy channel. Given our scalability and our relevance. We know that we have a better profitability inside these marketplaces. Before bringing all those limits together, there is an aspect that is a bit more beneficial than we had imagined. The concept of this, you know, a higher marketplace and the silos concept, we're always gonna have a, you know, cannibalization of some sort in every level.
You know, given all the previous talks that we had and what we already had in terms of numbers and data, it was, you know, the incremental part was more relevant. Of course, we did not take another thing into consideration, which is the cash flow imbued in my own sales channel. The person, of course, making a research of that specific price and is not gonna find that specific item, not only on my platform. If you're used to making use of one platform. Let's say if you guys are not buying a refrigerator, you know, you guys should actually have at a minimum, you know, go on a research on where to buy your specific product.
If you're only buying, making a purchase in one specific place, of course, it makes a lot of difference in my own pocket. Jokes aside, we have, as an important brand, we manage to have a better pricing in a way that, you know, the customer is always gonna have an advantage when it comes to the payment lines, when it comes to ROIC in our company. Of course, it shows a lot of advantage to him. ROIC standpoint. Yes, we have a lot of efficiency and I'm actually being able to relay all this efficiency to the customer in a scalable and a proper scalability. Yes, we see all of it in a proper monitoring to avoid cannibalization.
We need to walk along with the customer and still keep increasing our content in our channel, so we do not create a cannibalization in our channel. I believe that's gonna be the main key area in which we need to monitor in a very close way.
I think the second answer, you remember well the subject, which is a pain for us, being a result of flow. More than BRL 1 billion a year as labor disputes expenses. Last year, we saw from the beginning that it's an area that we were. We had some movement. We implemented a number of tools in the new management regarding the workers' lawsuits, but also looking at the root cause. We went, where were the actual pains that were generating those lawsuits? We have been working in sales point, in management in the store systems, a number of initiatives to improve and things and becoming a more compliant company in this point of view. You see an important improvement in 2025.
We have some legacy lawsuits that are more expensive ones, but they have been dropping in numbers year-over-year, so we have less impact in the whole, and this has been benefiting everything. We will continue to see this gradual improvement, but there's that we don't see those great leaps like when you saw before 2023. We had a substantial improvement. It's an ongoing subject of continuous improvement. It's not a constant pain as we had before, and there's room to continue to improve and be more efficient, especially when we go and look at the root cause so we don't generate new issues ahead. Slowly, in a controlled way, we are improving every day. Regarding the tax that you mentioned at the beginning, all tax gain from monetization offset the labor issue.
Now we are equalizing the labor and tax, and tax is an added cash flow and will help both the operational and we have this added flow. We can monetize it in a more intense way and improving our cash flow over the next few years. Beyond the operational, these two subjects that you mentioned, thank you for your question, are both in the correct path. Nothing happens overnight, but we have the maturation time. I would like to invite Luiz Guanais to ask his question. Please raise your hand. Thank you, Gabriel. Good morning. Thank you for your presentation today. I have two questions, two topics that we need to explore. First is you mentioned over the last slide the growth leverage and margin. One of them you mentioned about store productivity and expansion.
I would like you to go deeper into that. Where do you see the opportunities for new stores, brick-and-mortar stores? Of course, this depends on capital structure of the company and within productivity. This morning, you and the other director explored a number of issues that will help to implement this as one of the main focus of growth. I would like you to go back to this productivity driver. That's the first question. The second one, exploring the partnership with Amazon and Mercado Livre. Could you talk about credit? I know that in logistics, especially with Amazon, as you mentioned, there is an added opportunity for monetization that maybe at MELI, it needs to be developed, but maybe in credit, the risk is small or do you see added opportunities? Thank you for your questions. When we talk about the first question...
I'm thinking about the second question, e xpansion and productivity. Of course, we have a lot of leverages. When we look at productivity, we have a lot of idle time on the sales team. With the e-commerce and new technologies advent, we have a lot of opportunity to use the sales force. Another thing that changes a lot is that our salesperson is a acknowledged specialist in their area. With the start of the AI use, the consumer becomes a specialist in those technologies. The greatest gain was when we put the AI agent to help the salespeople, because it's almost as if they knew how to write the prompt better because they know the product. Please compare this. If you have a long prompt, you don't have the best answer. They don't know the best commercial condition.
When we add the agent within our inventory context with our margins, we can create an argument even to move the client to the best margin product. When I talk about productivity, it's not just selling more. Many times it's selling better because depending on the refrigerator that we sell, it's our ROIs margin, and the other is another one with more productivity. We have incentives that are connected with the commission of the salesperson that take in consideration the ROIC, and we can connect all these points, giving them the basis so that they can turn the sale with the product that is more profitable. There's gain in this sense, and we have basic operational gains like store space. I will let him, Fred, say it a little bit, but there's a lot to gain within the brick-and-mortar stores.
In expansion, of course, we have 200 towns that we see potential, but prioritizing not only through return on investment, but the speed of capture of the market that exists. Where it's faster to bring return to the company, we should focus in the right moment in the countryside of Minas Gerais and São Paulo, where you have the logistic mesh and branding that is powerful. It's a market that is focused on credit, and it's very good. Fred, do you want to talk some? With the productivity, we have the sales through square meter, sales by salesperson, and we have the opportunity to reduce the square meter. But not only that, to optimize the space through sub-location or returning part of the store to the landowners. Other activities together with suppliers that would use the space.
For example, the last few months, we have a mattress store for a supplier so they can sell their whole range of products within our stores. That generates traffic both for us and them. We have our huge scale of products, as Renato mentioned. When the salesperson has no physical clients, but they are connected with the client virtually through WhatsApp of the leads that they receive, we increase the productivity and also to an average ticket sales over the last two years. It's almost 15% only by digitalizing the consumer and the expansion. As I explained, expansion began to add data to make sure that we have an expansion that is focused on our core.
We have this, the brick-and-mortar store that we want to replicate, but we have all the indicator to make sure that this new brick-and-mortar store is profitable. Also the participation of the consumer credit in the sale. The indication that we have microeconomically, we know exactly where the consuming public is. Then we have a partnership with other organizations that will talk about the localization and the crossing with the AI we know in each street and each town, it will be easier to implement our model of store, of a brick-and-mortar store.
As I mentioned in the presentation, we have 52 towns that present future opportunity for expansion. When we talk about marketplace credit, as Vital mentioned, we truly believe that our credit is scalable as a product within our model for other sectors, even if it's the same public that I know well. Of course, we need to consider loyalty to the brand, so we need to pilot and see what the non-working loans are to be considered. When we look at the marketplace and Casas Bahia, we are sure that it's very similar and it's worth making our own. Some marketplace have their own credit solution, and then there is a resistance because they want to use theirs.
We try, and if we have a difficulty, anyway, it will open doors, and there is room for us to do, even in a marketplace where they have their own credit lines. Some of them don't even have a credit line. Chinese-American, they don't have it because it's not their reality, and here we have a lot of participation. Discussions are ongoing, and we think that during this year, we'll see new initiatives that will increase addressable market for our credit solutions, bringing more profitability to the company. Thank you, Luiz. Pedro, do you have a question? Thank you. Good morning, everyone. Thank you for the space. Congratulations on the event. Pedro Caravinha, and I'd like to mention two things. First, in the consumer credit as you mentioned, in Brazil, it's very difficult to predict what's going to happen.
I would like to understand, what can you do to increase the penetration of clients in the 2.2 million to the 60 million that you see as potential? In a more restricted credit scenario with a lighter balance, can you be more aggressive? If there is a product adjustment, what you can do to accelerate that? Still in the subject of the colleagues mentioned with the marketplaces, you have three, four years with the partnership with MELI and now Amazon. It would be nice to understand first, what were the lessons learned with the MELI partnership that you could bring to the Amazon discussion? What were the main subjects? When we think about economics, what were the main conflict points during negotiation? I think regarding credit, Vital probably can answer better. You, and in retail, everything is granular.
When we look at our models, we have a lot of working models. As things get more worse, let's talk about 2025. The macro scenario deteriorated. For example, in Northeast, we have a structured non-payment that is larger. We close sometimes and open other times, so we can keep my KPIs all below a certain threshold, which is the very conservative threshold we have. We are not willing to flexibilize these limits. There is a number of variables that make me close this. We were grouping variables and closing more taps as a metaphor than needed. If we have four taps and within the profile of the Northeast, we close all of them. There's a small opening that we can open.
Each time that I adjust this decision, I reduce rejection or the demands because sometimes we don't completely shut the door. We just need to control better and increase installments or so on and so forth. This alters the behavior. We adjust the variables and work in a more granular way. I can be more assertive in the control of my risk and, in consequence, have a larger credit line with the same hunger for risk that I have today. We want to evolve, and we have a better analysis capacity than we had before. That's it. We, of course, have a macro scenario that is exposed, but we had a non-payment history. Even in the more adverse scenario, we've shown how much we've grown.
Keeping this discipline and negotiation of non-paid loans, we are not opening to new risk. One of the leverage that we haven't looked into is how the sales channeled for credit through WhatsApp can reach clients that we don't reach today. We have a database with 10 million clients with BRL 50 billion of approved credit, and our difficulty is, if I get to this client, I tell them that they have the credit in a easier journey. Many times they don't even need to leave their home, so because they move to somewhere where they don't have stores or high service journey like online. This will unlock new sales with the same public that we have the same risk.
Another leverage, we begin for the first time the model generation where AI begins to generate things that we don't have the human capacity to do because the AI can do combinations that are faster than ours. This will increase the KS on about 10% model. We either capture and reduce non-payment or risk the same, non-payment. Since we have a parameter that we are willing, we will expand the credit with the same risk. Another line is we customize our operations a lot. We customize through segment and others, but we haven't customized by micro region, which is the next arm. We will reach to the customization. For example, in the Northeast, we closed, but the Vale do São Francisco, Northeast is different than another state.
Now we go to another arm and begin to open credit lines in an area that we closed as a macro, but we can open small sectors. Our minds is always risk exchange. We need to reduce one line and open another opportunity. We will continue to operate. For us to project the credit lines, we need to look at our history of growth and see how we can look at the macro scenario if we reduce our spread as we have been doing and Selic is. We can look at the leverage that we haven't discussed, which is a tax reduction, rate reduction. With a new risk, is a new client that is good, but we haven't been able to capture.
Talking about lessons learned, I'll ask Gustavo to mention. We have a lot of lessons learned with the negotiations with MELI, and having lived the process, we can negotiate with more clear clarity our potential with Amazon. Of course, we created a strong position in the market that gave us relevance. The important lesson learned, both for marketplace or e-commerce, but commercial with the suppliers. Here we have more granularity and more information to improve our negotiation with suppliers and have a dynamic that is healthier in a competition setting in the e-commerce. We had the relevance of the platforms that impacted our final price within our internal channels so that we can be competitive within our advertising in the platforms and media and so on. We optimize things very well, both in media and commercial aspect with suppliers.
I think that's exactly it. I would like to add a point that mentions how much scaling is important. When we talk about the platforms, we have a high volume, a sales volume that is huge, and our commercial workforce works in the moment of the purchase, capturing the market as a whole. Of course, we have a daily life, but we can see in a number of moments that we can capture to the purchase, and we have the result and sales for the group. Because nowadays, whoever does this part is the smaller sellers, the smaller partners. With my scaling, my strength and robustness, we can bring this market to us. I think this dynamic was very clear with the growth that is very important, as well as optimizing media, growth, payment methods, and so on.
We clearly can see that we can capture this market through our scaling and power of negotiation with our suppliers. Thank you, Pedro. Do you have a question, Eric? Thank you, Eric from Santander. Congratulations for your presentation. Two things that I have as well. First, looking at the logistics efficiency that you mentioned as a profitability pillar. I like to understand how you look at it as a tax reform. When you look at the footprints that you have, maybe you are better well-positioned with the competition or even against the marketplace and pure e-commerces. When you think about the store footprint and trying to capture better how much better is this positioning. When we look at the supplier issue and the focus on the return on investments.
You talked about the Chinese investment and the market participation, and they were partners in important moments where we're having difficulties with other first suppliers. I'd like to understand what's the potential from now on now that you have a capital structure that is more equalized and what's the gain over the traditional suppliers, those that maybe have a lead time that wasn't so good, and what's the stable line from now on and the ROIC for now on. Quickly beginning by the second question, we see, as mentioned, we want to go back to that time pre the issues with Americanas.
When we look at the deadlines and some increments that we negotiated for March and some for April, we should have at least 15 days for suppliers discount added to the largest mix of suppliers, the Chinese, which will continue to increase of a deadline because this is expected, and we expect more limit with them. Of course, everything we influence, how we look at ROI. If they want to sell, they have to give us a better ROI. If I have leftover credit for each, I can start to have a negotiation that we hope optimizing our profitability. When we look at logistics efficiency, we have an important factor is today we have an idle capacity in logistics. That's why we've been expanding to third-party service. The tax reform optimize our tax networking.
We have so many distribution centers, maybe can increase, decrease. We have to look at the elasticity because if we deliver in one day it's a sales need. If it's two days, it's another sales need. That's why we are increasing the quantity of stores that work with as many hubs for large products because large products made no sense because we did everything through distribution centers. With more capability with distribution centers and sales and refurbishment, if we turn the store as a mini hub a self-sufficient mini hub for everything, we can optimize the distribution center. If we can advance with the logistic services for the large marketplaces, of course, this consumes logistic infrastructure. The refurbishment will be a catalyst for new CapExes.
Instead of optimizing the logistics infrastructure a lot. We will be able to use this infrastructure to absorb services for third parties. Yes, there will be a transformation. It's inevitable. We will have some distribution centers that only make sense because of the tax complexity that we have in Brazil. There will be a transformation and some costs that we will be able to reduce, and shut down some CDs and so on. The reform is gradual. It's not a binary thing that now we have to finish by 2029. Looking ahead, we have gradual decisions to have to see how much we move forward in the third-party services and how much we have available to sub-block, sub-brand, and so on. Yeah, things to add. The important thing is our logistical hub.
It has advanced and will allow us to adapt and evolve according to the tax reform, because it's something that we already have, and we are more and more closer to the end client. We'll be cheaper and cheaper because the cost of the mini hub is better than all the others. It's counterintuitive. The demand quantity and the representativity of the clients that likes to buy, getting the fridge in the store or television in the store is surprising. The cars that fit a fridge are surprising. I certify that if I quiz you will be completely wrong. Though you can use it in small cars, you can put big TVs in smaller cars. People can carry them in bikes, bicycles. They're very creative. Next question. Anyone else? Wellington. Wellington, please. Good morning, everyone.
Thank you for your presence and your presentation. I'm Wellington from Bank of America, and I think when you were mentioning credit, you mentioned a number of products beyond the Buy Now, Pay Later, and the customer credit line, so the payroll loans and retirement loans. I would like to know, looking ahead, how can we understand the expansion of these opportunities? Will they evolve according to your customer credit programs, or will they evolve in a more faster way? I'd like to understand better these credit opportunities and how do we see the evolution over time. If we think about each product having their own specificity, each product meets a specific need. For example, the personal loan, and look at why they're going to use the money.
They say first, the big item is to invest in their own business. 40% of our clients are self-made entrepreneurs, so they need working capital. Many times when they get this, they begin to pay on average of the deadline that they use. They purchase, they pay debts, and they go back. Each product has a different maturation. What we cannot forget is who we're talking about, 116 million, and we know those clients well. The payroll loan helps the clients that is different from the personal loan because those are employed people. They are not purchasing because they have less appetite for a high interest rate as the personal loan. Of course, they have the lower interest rate for the payroll loan because there's less risk. Because they have the payroll loan.
It's connected to the payroll. We have a specific evolutions, and with the market, different markets. We expect a growth due to the low penetration in the segment, 0.1 for a payroll, and if we get 3%, 1% is BRL 1 billion of revenue. They're very promising products with their own journey and path separately from the consumer credit because they have different intention, and we have to look at the global risk of the client or consumer, not forgetting the groups with their own processes. They are promising. We think about similar penetration in our client base, and we have opportunity to create relevant business as well as having the partners connection that allocate capital for those ideas because they believe how much we truly know our clients.
The return on investment for them and market parameters is different. Given our track record, we've been compressing the tax rates and investment, and they have appetite for us to operate. We have the third-party capital and other investments. It's all about moving ahead and getting new lines. Just to finalize, Vital mentioned at the end that the capital allocation, when we look at the strategic point of view, it's a lot stronger in the consumer credit because it contributes with a better margin. We use third-party capital. We are very attractive with our products, with a robust model. We have a track record. We run a pilot, and we are able to attract investment, and we can increase the return on investment for the company without allocating more funds in this area.
Just to complement our idea, we have a different relationship with clients than the rest of the market. For example, while the operator was operating BRL 300 average ticket, we operated with BRL 1,500 for the retirement fund. Why? Because we could get closer to this client than the rest of the market. Those who were in the market a long time, they had BRL 300. Because of our brand and a huge ecosystem is closer to the client who are not in the traditional credit market, it's where we get the opportunity, and that's why we have 64 million clients where we can explore financial resources because they trust in our brand, and we have a reference of a physical space where they can go ask for help and talk to the salesperson.
Good morning, everyone. Thank you so much for... Gabriela from Goldman Sachs. Thank you for the event. I would like to explore a bit on the capital structure that you're working on the working capital that you have. You guys talked a lot about it, and a very important part is, in the presentation, is the asset monetization. You guys showed additional initiatives in the presentation. I would like to explore a bit further if you guys could actually shed some light on what are the concepts that you guys intend to monetize on, in the talks and these lines, and of course, what are the potentials of these administrative lines. We had many leverages available for the company. Some of them are available to us since 2016.
When it comes to physical stores, for instance, we have around seven real estate proprietary stores. Of course, we had a lot of proposals when it comes to the units that made no sense to have a 20-year contract when it comes to that building. I'm gonna give you some money now, but of course, by the end of it, I'm gonna have a payback in a more decent way. We need to have more fair negotiations so we can actually involve in conversations that will actually make sense to the company. We're not here to make monetization at any cost.
We need to be rational inside the concept of a leveraged company with a level of operational efficiency in a very important level with a promising future. We had worked with stakeholders that see this company in that sense, so we can have a better price. We get the real estate, and when we talk about tribute or physical monetization. Of course, many of them are pretty negotiable, and we can bring them this discount rates. Of course, if they're reasonable. Otherwise, we can actually wait it out. Of course, we have a few other assets and more strategic assets in the company in which we can actually monetize on. We have the unlocking of lawsuits, of course. There's an entire process behind it all that we do not do it overnight.
We had insurance companies that are actually bringing along, but we need to get in touch with all the judges. Of course, there's the whole bureaucracy involved to make the unblocking of those resources beyond, you know, FIDC and default that are actually on the line to bring new opportunities. We have a lot of initiatives. Of course, each one of them are actually bringing, you know, a few hundred million reals. Of course, by the end of the day, we're gonna have somewhere around BRL 1 billion to bring to the company. Any other questions? Good afternoon, guys. I would like to congratulate you guys for this entire transformation and the team involved in it.
First of all, I would like to make a question over retail media, because I think it's a leverage that demands too less, you know, working capital when it comes to investment and has a lot of impact. In the context for the upcoming event, which is the World Cup in the second semester, in a category in which of a very safe category for charging for everything that is about to be delivered. I think that the competitive edge that we have is we have the physical stores as the greatest asset of media monetization, different from other competitors that are coming in a very strong e-commerce line. We have the physical stores, and we have a very strong leadership in these categories.
We have the other suppliers that are actually feeding this demand. We have the boost for entire media monetization. I think it's something that we've been preparing for quite you know some time now. We also have the other suppliers that also wanna make use of our resources and be able to monetize and offer their publicity in our stores. When I make the great quantification of it all, having all the portfolio available, I am the biggest player with the highest screen sales in the market. Yes, we make this end subdivision to all of our partners to have that going on.
We think that it's a very good strategy of our group and obviously inside all our e-commerce platform that keeps advancing with our sellers and our suppliers as well. We have this competitive edge that no one has taken part in a way that we do in a country. We're talking about 50,000 screens available. We're not gonna have a real guidance on how we're gonna act on this line. If you really wanna accelerate in more, you know, the diversified player, of course, we had a more feasible way. We don't think that this very healthy method to bring, you know, our customer to another site or to another location.
If you look at the pricings that we have, if we had even more aggressive things, just like, you know, big companies that would actually be able to monetize those things in a very strong way, we would like to prioritize our internal processes. Always counting on the ROIC and the margin that we have available. We cannot allow a supplier to come to us and say, you know, he's gonna pay a very strong retail rate and, you know, be giving up on the other things. Yes, we're gonna, you know, charge you for this specific value. To be there, you need to be in, you know, inside of the group.
Of course, you need to be inside the margin, inside the payment deadline so that it makes sense. Otherwise, it really doesn't make sense for us. We're talking about, you know, an additional profitable profitability for the company. If not well monitored, of course it's gonna become a mess. We really need to look forward working with the partners who are working with a better deadline, working in a progressive way. I think it's pretty important and if we really think in the future, if you talk about, you know, the net profit's not gonna actually represent anything to us. We're really not even actually you know close reaching numbers close to 1%. Of course, it all depends on the platform.
We're talking about very distinct businesses and more fragmented lines, which is actually not our reality. We need to actually reach a number of around 4% to become something relevant. We're gonna have a real reach of pro-growth, which is pretty strong in that sense. You're talking about something in one, two years' time. Is that it? Yes. That would be the line. That would be the sense. Charlie. Well, my second question is pretty specific to Elcio. With the second conversion, MAPA Capital has 85%-86% of the stakeholding when it comes to the entire stock market. So yes, we're gonna have enough profit to make this kinda conversion available.
Now we come to the first movement when it comes to conversion line is gonna happen, coming April. Can you elaborate a bit more of what's going to happen in the market to make a better investment in this kind of transformation? That's well put. Just to give you all the additional information of the first, the MAPA Capital conversion, they retained 85% of our stock market value. The assets that will actually be converted are gonna be converted into the future debenture. It's already been defined. By the end of the first operation, the first diluted basis, MAPA Capital will still have 60% + of the stock market of the company. Yes, we have other partners in playing here.
We had somewhere around 66%-77%. Yes, they remain with the governance from now on. When it comes to the net profit that we're gonna have in the future, historically speaking, the company always had a value always higher compared to the RE. Compared to the next periods, we're gonna have the take-back from a company that's actually driven on a very strong philosophy when it come to profitability with physical assets. I think we're gonna have a very strong rate just like in above this, where we're gonna have a very good curve in this. It will also strengthen all our aspects in the company. That would actually come up to April next year.
Throughout this entire time, we're gonna have somewhere around BRL 1 billion that will actually be added to market cap in the company, throughout the year. We're gonna have 10%, right? Any other questions? Renato, I think you're gonna have the floor for the final considerations in here. First of all, I would like to thank everybody's presence. Here's the message, a final message, maybe if you would, guys, to put it on a final presentation slide. We're talking about, like, an entire different company. It cannot even be compared to the company that we had two years back with very good numbers, with all the leverages when it comes to the financials point of view, with a lot of opportunities to be captured, which is just a bearing fruit of this, the entire transformation.
With all the bureaucracy, with all the expenses that we had in the past couple of years, looking at the bigger picture by the end of the year, it's our job now. It's a less challenging goal that we have compared to what we've done so far. Of course, there's a lot of room for improvement, and I think I'm just gonna leave four main messages in here. We have the structural risk that's been removed. We removed that obstacle out of the way. Say, "Okay, how are we gonna do that? How are we gonna do that? How are we gonna actually take this wall down?" Now we have enough capability to actually get those things out of the way. The second point is the execution.
I think that now we have nine consistent trimesters of delivery, which comes in a very strong way. The third one is you can actually see the kind of discussion that we're actually having now for all the results for the platform monetization. We need to get the current ecosystem and increase credit participation and services participations, retail media participation, monetizing the entire platform that we have available. The fourth pillar is the journey of value generation, is to put everything together with the profit and a lot of discipline, so we can have all the allocated capital in the right leverages, so we can have a growth spread in a very good level.
Yes, we are pretty convicted of our journeys so far, and I think undoubtedly, we're not saying that the retail market is something favorable in a very good way. Yes, the company is really prepared to face any micro economic scenario. To get out of this specific initial stage, we had to start back in a meeting. The surgery had already been performed. All we gotta do is just take all the getting back to root lessons. We're talking about, you know, an entire distinct journey in a platform and value generation. Thank you for your, all of your support. We're always gonna be available, especially our RI department. If you guys need us anytime, we're gonna be available. Thank you so much.
Thank you so much.