Camil Alimentos S.A. (BVMF:CAML3)

Camil Day 2020

← View all transcripts

Dec 11, 2020

Welcome, everyone, to our 1st virtual commute day. It's a pleasure to have you all with us. I would like to start by telling you a very brief history of our growth, which I divided into cycles. The first from the company's inception until the end of the 90s, when we experienced organic growth mostly. And by the end of the NIDA's in early 2017, We not only had organic growth, but also a very strong inorganic growth. Throughout this period, we had 3 private equity funds, who assisted us and the company learned a lot from them through this inorganic growth process. Throughout these past 20 years, not only the company entered into new categories like in Brazil or sugar and fish, but we also entered into new countries, Uruguay, Chile, and Peru, and all of these are leadership positions with leading brands not only here, but abroad as well. And this 3rd phase which are considered to be post IPO is when the company started writing a new chapter of its history. We we faced 2 very hard years, not only Camille, but all of the rice industry faced the same dire moments, which was in 2018 2019 and now in 2020, when we were faced with the challenges posed by COVID-nineteen. During the pandemic that started at the end of March, the first measure taken by the company was to introduction of a crisis committee that met on a daily basis in that crisis committee operated in 3 fronts: 1, we had to ensure the ongoing operations that not only I'm referring to maintaining the operation of the industry, but also maintaining the entire supply chain, direct and indirect inputs as well as the entire logistics. And also, we had great focus on maintaining the liquidity of the company. There was another very important front involving the safety of our employees. We introduced several safety measures during the entry and exit of our employees, and we had to provide a lot of training because of the pandemic protocols and these trainings are still ongoing. And this is one of our ongoing concerns because we don't know whether the second wave will come or not, but anyway, the company reinstated all that previous work. And the 3rd front involves social responsibility. The company focused on helping the communities where we operate where we have our plants. This is our first focus of operation and Camille will also participate in several donation companies we donated a lot of food products in an attempt to minimize the impact of the pandemic. This slide shows an overview of the company in the last 12 months ending in August. Just as a reminder, our fiscal year goes from March through February. So our first half of the year ends in August. So in the last 12 months, the company's net revenue was 6,600,000, EBITDA in the last 12 months also ending in August was $674,000,000 and The company sold 2,200,000 tons. Our operation in ballpark figure, 70 70% is in Brazil and 30% is abroad. Our main brands in each one of the categories and in the countries, as you can see from the slide shows that we hold a leadership position or we are number 2, like in rice, our main brands are Camille and Namurado. In Sugar, Unile, and Dabaja, fish, cocaine is the main brand. And here in the other countries, we have Samano in Uruguay, Petapel in Chile and Costenio in Peru. And here down below, This is just a breakdown of that seventy-thirty ratio. We see the revenue in Brazil of 4,600,000 and revenue were brought of 1,900,000 BRLs. Our business model is extremely resilient. And if you look at the chart on the lower left part of the slide, we have a long series of almost 12 years and that shows that our EBITDA margin during this period vary between 10% 11%. Therefore, even in years where there was a drop in GDP or during a very recessive scenario like 20152016 and 2020 as well. We clearly see that the company continues to perform its margins in steer remains between 10% 11%, despite the dire scenario. It's also very important to mention our segment and obviously come is able to transfer prices. And this is why our operation is so resilient. So any spike in prices or price reduction in raw materials are transferred in a very short period of time. And to illustrate that point, we have at least rice prices where the company poses a new price almost every week. For beans, sometimes we have more than one price a week, And this shows that this transfer dynamics is very quick. Now speaking a little bit about our growth strategy, we have 3 major or 3 major objectives. The first is the market consolidation. When we look at the rice market, Camille has 13% market share. The 2nd player has 5%. This is a very fragmented mark it. Therefore, the company works hard to consolidate the segment, both for rice and beans. Also, the company wishes to enter into new categories as we have done in the past with sugar and fresh The company has many synergies with the wheat chain, coffee chain, All of these categories are in tune with our company just like it was with Sugar and Fish. And also we want to grow our footprint in South America. We are already present in Uruguay, Chile and Peru, And we now wish to enter into other countries like Columbia, which is a country that in our view could be very interesting. And to conclude in summarizing everything I said, I believe Camille's strengths are that we have a very large distribution network, not only in Brazil, but also in Chile and Peru. Our brands are leading brands, all of them with high brand recognition with premium prices, our business is very resilient and this resilience comes from this capacity to transfer prices and also the fact that we are able to promote a diversification of categories and also we can diverse in geographic areas. And we follow the same lines that we did in the past 15 years. We want to consolidate some of our segments and we enter into new categories and we want to look for new categories outside Brazil in the countries where we are already present in other countries where we are not present yet. In addition, our team is very prepared to continue managing the company the same way we've been doing so far. Therefore, we have a very sound leadership with very strong ESG standards. Now I'll give the floor to Flavio. Thank you. Luciano, thank you very much Good morning to everybody. It's a pleasure to be with you today to share some of what we experienced in 2020. This has been a very unusual year to all of us and in regards to what happened to the company, we will elaborate a bit about our results this year in food industry, it was a very positive year for Camille. And also, there were some important highlights. Just to list a few highlights in regards to dividend payout this year, we recently announced a dividend and interim dividend payout of CHF 150,000,000. 1,000,000 interest on equity in December. And this is combined with a 1,000,000 that we already paid out from January through September. Certainly, this shows that the company is capable of generating cash, distribution of proceeds has been done in a rational fashion. And this is also combined with our 4th buyback program that was announced in the last quarter or 4000000 shares to neutralize any effect of the call option of the officers of the company. This year, in financial terms, we maintain our focus in the operation liquidity was something extremely relevant in the first quarter. BRL1.2 billion to face any contingency that we could encounter and more recently We already started doing some asset management. We did some funding in Brazil, we had another debentures issue to expand the tenure and fund our costs. Also something that we did and it's in the radar of the company and our stakeholders and the board is the introduction of an ESG committee. We are putting together this ESG structure in all governance spheres starting from the board going all the way to our operations. And in addition, we are doing some extensive work to with our NDRs online conferences and live sessions, we were able to reach over 2200 investors. We received a lot of acknowledge from the market. We received some awards, as a company from our suppliers. Therefore, despite being a difficult year for everybody, This was also in a year where our work has been acknowledged. Now talking about the financials of the company, this year, we encountered very positive dynamics for our business. The pandemic put a spotlight on the food industry because it had been a bit forgotten in the past years. And now the year's trust the importance of being a company that provides basic staples. We started our fiscal year in March and that was precisely when the pandemic was announced in Brazil At first, we noticed an increase in demand coming from all of the stages the change starting with consumers, then retailers, and this then was replicated throughout the industry. Basically, in all of our markets, we experienced a positive impact in terms of volume both in grains, sugar and fish because fish is a seasonal segment, but we had a positive performance and the same dynamic was noticed in the international market. Certainly, this is combined with an increase in prices of the main inputs mainly due to supply and demand conditions in Brazil. Also, the depreciation of the Brazilian BRL. So the company had a significant performance. And by the same token, the company was able to recover its profitable levels. Therefore, by the end of 2020, when we look at the results for the last 12 months, ending in November, we arrive at almost 1,000,000,000 in revenue. This is a significant recovery in terms of our EBITDA reaching CHF 674,000,000 in the last 12 months. And also this shows the recovery of our profitability level of that now is close to 10% which is the historical average of the company. To elaborate in some of the different segments in Brazil, rice was the segment where we were able to post a more clear recovery. In March on the onset of the pandemic we noticed very strong increase in demand coming from consumers and therefore affecting the entire chain. This together with this very unique dynamic in the market because there was strong demand in the domestic it. And at first, Brazil became a very cheap country and we started to export rice. And because of that, prices had an important recovery, mostly stemming from this unique demand. And as we were able to transfer prices, the company in turn was able to recover its historical profitability levels when compared to the results from last year because things were different this year when compared to last year. Now looking at the beans category, with beans, the dynamic was a bit different this year, maybe not as severe as in rice when it comes to demand. But by the same token, the demand for this basic staple was quite high. And the company in the segment posted a positive performance throughout the year. Now when we look at the sugar segment, Unileom brand remains very strong. And we also noticed that this year in the sugar segment, things were a bit different. In regards to volume, we've been operating at a sales level that is very similar to what we had a significant one when we draw a comparison with the last quarters of last year. And what happened in this segment in regards to profitability is that our profitability is slightly below our historical levels. Despite sugar prices in international markets, the gross price of sugar internationally has covered. This year, we were not able to see the same recovery dynamics that we experienced last When we look at the fish segment, we also had a very positive scenario. Financially speaking, first of all, in regards to volumes, we noticed An additional demand in this segment during the pandemic months, Well, I must remind you that this segment is seasonal. And on average, it had a better performance than expected. During a period where demand is lower. And now, financially speaking, We are reaping the benefits of We did some important work to improve industrial efficiency. We also adjusted prices in our go to market strategy. And all of that combined allowed the company to caused significant results in this segment. So before I move forward and give the floor to Renato, I would just like to conclude this summary of the year on a positive note. It was a difficult year, not only the company, but I think the entire world had to adapt And this different reality showed how important it is for you to be a company that offers basic staples and the capacity to recover of the company. We were able to have good volumes and also to make all of the necessary price adjustments. That when we look from now backwards to the past, we will close these last 2 quarters posting historical members of the company in almost all of our indicators. We were able to show operating resilience. We also showed financial resilience because we have support from our main partners, we are in a leverage trend that allows us to pursue our strategic goals. Having said that, now I give the floor to Renato, our operations officer who will talk about what we did in this past year. Hynato, welcome. Good morning. My name is Kenneth Cessor. I am the operations officer at Camu and I cover industries and inbound and outbound logistics of the company. I would like to give you an idea to you what is it when we talk about Brazil operation? We cover North Northeast need West, South And Southeast. We have 14 plants all over the country, 13 distribution centers, and most of them belong to our own units. And we have 2 drying centers where we received the rice We store it, dry it, and then we send it for processing in one of our units. We basically have about 500 suppliers more than 500 SKUs produced through our plants. And just to give you an idea about the transportation facility and what we do in company, we load more than 11,000 trucks a month, and we perform over 22,000 deliveries. In addition, we have a transportation company that works both with our own fleet with and third parties. And in our case, this is a very good opportunity to learn more about new technologies, to get pricing opportunities and to understand the chain much better. We have approximately 16,000 customers and we produce 125,000 tons of it. This is just to give you an order of magnitude of what we do here. Now moving to our next slide of last year. I had a presentation about the main focus and the highlights of my area of responsibility. So I'll start from there. I'll tell you about what happened, what did not happen, and what still remains the focus of the company in 2021. So just as a recap the previous presentation, we said that our focus was productivity, automation, the energy grid, and routine management. We made a lot of progress throughout 2020 in all of these fronts. We deploy productivity using control items and the efficiency control of the plant. We introduced that process in our newest planted Baja, And now we are maturing this routine to later unfold it to the other units. At Baja also, we've as an automation, we introduced robots to increase our operation efficiency, both at Vaha and in the grain plants, we can say that all of our units are already fully automated in terms of palletization. And with that, we were able to increase our operating performance in the play We have a pilot project, and we are now developing the executive project of a an energy grid for another power generated based on the burning of the hull. This is a project to be deployed this year and routine management was something that we implemented in all of our units. All of our indicator management, PDCA, you know, results analysis. This is something that we do every day through PDCA. And with that, we can manage our results and make the necessary corrections. Indicators and what happened in the last year. Last year, I mentioned 3 pillars: safety, quality and operating a efficiency in terms of safety and accidents in the last 3 years, we did some significant work in the company. We paid a lot of attention to that, and we were able to lower by 75% of the total number of accidents. We deploy PDCA, meaning that we analyze everything that had happened, and we made, and we made decisions based on the parade of Kirk, based on accidents, we define golden rules together with the people with people management people or the do's and don'ts of safety and based on that, we also elaborated the behavior part of the team. And now we have to maintain all of that. And And also convey that to our leaders because the leaders are responsible for our safety. While I am in charge of the safety and security of all the plans and then the manager of the plan, supervisors, and so on and so forth. And this is not something that you start and then you stop because Our ultimate goal goal is 0 accidents. This is the goal of the company. We already have several plants with 0 accidents for over 3 65 days. With quality, we introduced SAC or customer service based on the number of complaints of our products, we were able to post a reduction of 45% through management practices, and processes. One of our plants was certified and recertified this year at IFS 22,000, and we are very proud of that. This is one of the only rice packaging plans to be certified. And we are very proud to be part of the Selective team. And now we are about to introduce a sender checklist. One management is in place. We have to ensure that all of these standards are constantly reviewed in order for us to continue to had an improvement of 10% in cost mainly by reviewing tariffs. We had a lot of bids for service review, and we worked hard to reduce energy consumption by 19%. We also increased our performance management of our units, we reduced by 30% the number of overtime hours. There was something that was not so good because our maintenance at expense was 5% higher than what we would like, but our focus this year is to reduce that KPI. And in terms of raw material, we were able to improve our our industrial production. We have to constantly focus on reducing all these KPIs, but we made good progress. And for this year, we still maintain the same focus. We have to take OER and unfold that to the other units, our grain plant should roll out this technology to help people learn and have all of the the measurements under plan. Not only it's important to talk about volume, but also line efficiency. Automation, we are rolling out a lot of automation processes in our units. Particularly with the use of robots for palletization and information management, for decision making, we are now in the executive process to build a thermal plant. And the idea now is to start the licensing and execution phase. It's a longer process, but it should be ready in early 2022. And we are just concluding a new plant. We are moving our former plant in Villa and Astacio to Osasko, it's a state of the art plant, and the bulk of the production is for beans, but the plant will also produce some rice packaging. And this new planted space with all of the has all of the routines that we already deployed with efficiency management, indicator management and all of the automation that we had in the other plants. And with that, we will give important leaps to reduce cost further in this unit after it moved to this other new address. And this should be finalized early next year. And now Talking about logistics, this is another area under my responsibility. We focus on 3 major pillars: service level, inventory management and cost reduction. In terms of service level, we utilize OTIF last year, and we're able to grow 35 percentage points in that regard. And this led us to receive some awards from some of our suppliers as one of the best suppliers in the delivery chain because we're able to improve our service level. And this was basically due to optimization and tracking of our deliveries in Sao Paulo in Rio. We are just concluding the pilot phase And until the end of the year, we want to roll that out to all of our other operations in terms of Control Tower. This is something that is already starting in the new plant, but we want to centralize all of the tracking of our deliveries in a single room. This will be developed throughout next year. This is one of my own individual targets. And all of the delivery management of the country will be fully automated. This will improve our performance because it was difficult for us to manage all the deliveries, but within the new process, we will be able to improve our service level and quality as And finally, the cost to serve. Last year, I told you that we were focusing on the causes of production allocation, meaning where to package some brand while at the same time, we would optimize freight costs, utilizing tax incentives, and also optimizing the location of the plant. This year, we will also focus on the cost to serve the moment I leave the plant what is the delivery cost for every order? We want to be able to measure that so we can we can make improvements in terms of truck occupation and the opening of white areas and what will be the most interesting white area. Firstly, thinking about this cost to serve. This is a very important initiative, and we have to do that work together with the sales team. In terms of introduce SNOP also based on artificial intelligence. We build a demand plan that looks at previous years and makes a forecast for the future together with the sales team. And when we get together, we cross all the information and make a decision about what to produce and what to deliver the following month. We are just beginning with this process. It was initiated in the middle of this year. But we already had all the back office ready before the system was in place to have systems to analyze demand and where you would place your collaborative demand and further we further down the line, we will be able to have a more assertive decision in terms of inventory management and have a better service in the supply chain. We included Power BI in the rest of the company. All the management of my era is now in the Power BI since them and we can make better decisions. And the focus is to improve further because we have to improve our sales forecast because with that, we believe we still have a lot of opportunities to further reduce costs and improve the service level. Last year, we focused on freight because this was one of our major challenges. We were able to have a 13% reduction in Fredpur Hall this was based on the numbers of last year, but he can say, okay, you reduced that because your earnings were higher. Okay, true, but we were able to post a 28% reduction in terms of warehouse per ton. We focus on optimizing truckload, improvements in minimal orders and load charts and daily control freight prices through controlling the carriers and truck hook, which is having all the trucks part to make better distribution and deliveries in the fixed routes with the port. And we also have better management of our fleet, and we are initiating another process to acquire fuel through our own transportation company because we want to eliminate all of the intermediary margins. And that amount can be captured internally. We are running a pilot plan and the idea is to roll that out next year. So in summary, all of the logistics initiatives for this year for 2021, is that we will put a strong focus on the cost to serve, looking for margins optimization, looking at the orders through the simulations from the plants. We want to be more efficient in our deliveries and we are still maturing as an OP. We just gave the first steps, but we still have a long way to go in this process in the organization. The Control Tower will be deployed next year and that we will be more accurate in terms of delivery information, and we will digitalize logistics because this is an ongoing trend in the market. And we want to do the same thing and work towards having a more digital logistics and more efficient one. And the rollout of our fuel station, this is something that we kept from one of our operations, and we believe we can extend that to the entire country. So basically, these are the projects that we have in the pipeline for this year. I think we made enormous progress last year, but we are certain that we still have a lot more to do next year and the years ahead. I think we have a long way to go to look for better operating efficiency, both in logistics and in the industry. But all in all, we make important progress to continue to grow. So that's all I have. I would like to thank you all very much for participating and certainly I know we will have some time for Q and Hello. My name is Andreasilia. I am the supply officer in an export market of Camille Alameda. So I'll start by talking about the purchase of indirect materials. We operate with 2,200,000 tons of material in addition to packaging and services. We continue to work as we told you last year during coming day. We work on the freight tables for international and domestic freight, port, brokers, their mortgage and port storage. We are also pursuing the curement bids as we said last year with Ariba and the bids we are just concluding the last bid for IT, telephony, IGP, and other packaging items, smaller packaging. The market landscape has also favored experts. The depreciation of the Brazilian BRL from March onwards allowed us to double our export volumes COVID and how it impacted our company. We experienced some difficulties with supply or several segments in March on the onset of the pandemic. The packaging companies considered to be essential activities. And this was a cause of concern because we had to increase our inventory to prevent a stock out. In March, when predictions were very bad in terms of GDP, many plants that are very far away from our own plants like steel, plastic and cardboard. They decrease their activities. They There was a decline in their inventory levels due to the GDP drop. And in April, the government came with the emergent 8, where that injected more than BRL 200,000,000,000 in the economy. And because of that, demand increase of financially, whereas supply curve did not move as fast because companies had to resume their activities, reconnect their blast furnaces, and supply of cardboard, plastic, regimes, and and other inputs also increase like, swiping oil, which is an important input in the fish segment now going to raw materials with rice. The landscape was highly impacted by COVID-nineteen. There, I look at it expectation for supply and demand. We knew that the year end inventory was low, 144,000,000 you know, production was normal, import was normal, slightly above 1,100,000 tons. Estimated consumption, and we had been correcting the numbers because we experienced a growing consumption of rice and exports of 1,500,000 tons. And what do we see now at the end of the agricultural areas that exports exceeded our expectations, Brazilian ports exceed 1,600,000. Our projection is that issued with 1,800,000. The year end inventory that by the end of this year, by February 28, 2021 was supposed to be 18 days. The estimate is that this year and the inventory should fall to 9 between 9 to 10 days. So the crop season 2021 would be very short in terms of inventory. Mostly aggravated to what I show you here on the side, which is the impact coming from our pursuit. Production and decline both in Brazil as well as in Argentina, Uruguay and Paraguay. Mainly impaired by they will experience a significant drop of about 300,000 to 400,000 tons, and the entire block should experience a drop close to 6 100,000 tons in their harvest for next year. This will certainly impact prices. Here, I show the Brazilian map and the participation of every state in their the commute ranking for rice in Hilgrange Dussou is the largest hub of Camille's processing with 85% of the total processing capacity And we use the 3 major, allocation models of plants in Brazil, the model that applies to HUGO de Du SaultOK and that's where the bulk of the rice production is located. The Sao Paulo and Rio model, that's where the rice consumption is located. And we have a model for zones that receive high incentives and that is Pernambuco and Goias. These three plant model is applied very successfully. And I would also like to highlight an investment in Uganda Du Sulphur last year And that was the investment on a plan for rice origination in Petrito. So we went from a purchasing zone where we process 85 percent of rice, covering 70% of the competitive rice of of rice purchase to almost 82% of a very competitive purchase because we are located in the midst of one of the largest producing areas. So this plant of Domino is not an industry, but it's only for drying and storage. We believe that with that, we will be able to improve our performance of competitive supply prices. Here, we have a chart that shows the evolution of rice prices during this year. We started the crop season, but in February, the exchange rate was approximately 4.40. But as of March, the pandemic, there were several other aspects that came to change that curve. 1 is the depreciation of the Brazilian real. And the other is the year end inventory shown in the previous chart. The other fact is that the government injected a lot of money in the economy and this increased the consumption of the basic staple. Also, many parts around the world were shut down, especially in the main rice exporting countries. And they did that in, in an attempt to to increase food safety. And with that, Brazil became more competitive in exports and the Brazilian rights denominated in U. S. Dollars was very competitive. The market started to face an increase in prices because of high demand in the domestic market and the price can continue to grow and and it grew into August very strongly with a lot of sales in the domestic market, a lot of exports and prices were spiking until in August, it came to the same levels of the Mercosso until August, Brazil is much more competitive than Uruguay, Argentina and Paraguay. But in August, Brazil had to go to market soon to buy rice because it realized that he wouldn't have enough inventory to face sales until the next season, but it when it went to America. So we realized that Paraguay, Argentina and Uruguay were in the same situation because they were also exporting to markets. And they didn't have enough rice for us to buy. And so the Brazilian market, not only the Brazilian market, but the market in the rest of Mercosu, because as Mercosu cannot supply all the rice needed by Brazil, we would need to prior rights from other markets, mainly markets from India, Thailand and the U. S. And the government acted quickly in order not to impact prices to consumers. So in September, they removed all of the import tariffs on rice rice coming into Brazil. Import tariff is about 10 for rice in hull. And the government 0, the taxes, and it included us in an exception list and gave us a quota 400,000 tonnes. What we saw was that this was a very prudent measure from the government because it stable prices around $115,000,000. And this is what we see now. We see flat price. For next year, we see that due to the year end inventory, La Nina will continue to be very very firm, and we see that unless we have a very serious exchange impact next year, prices will be flat with no major variations because this year variations were really strong. Prices vary from 45 to 5th 50, a reais to 115. This has been one of the highest price variations in rice prices. Next year, price levels will still remain high, but the variations will be much lower. When compared to this year. Now moving to beans, I would also like to talk about our plant distribution from last year to this year, the highlight is that we put together a plant in CASK in Parana and we concluded the plant in a Parisi dejiguayana. Once again, a Parisi dejiguayana not only has some incentives, like we said before, but in beans, that area has a vocation to work with beans, goyas, is probably the 3rd or 4th largest producer of beans and the planting, Parana, the reason why we chose Parana is that Parana is the main producing region in the country. Our plant is located in Casa is a very modern plant, very efficient, and they are right in the middle of the beans production region in Barrana. With that, with beans, we were able to get the same thing we have for rice, great we are present in the major producing states of the country. And with that, we have greater popularity. We have a good structure for beans and rice, and we have buyers in all of the units of the country. And that gives us real time information in addition to knowing where the market is heading to and regions where it's easier, others that are more difficult in this allows us to plan our supply and to have tax gains. And this is important for beans. Now as of for next year, we expect to see still high prices. Well, we don't like it very much, but there are a lot a lot of speculators in the market. KONabi is anticipating a small acreage reduction the crop season will go from more than 3.1000000to3000000 Therefore, there will be a significant yield reduction, also soybeans. People are fixing soy prices around $140,000,000 to $145,000,000. And because of those prices, people will not be so encouraged to plant beans and growers believe that soybean worthing 140 beans to be 2 to 1, so they should be worth it to 80. Well, this variation is not so direct because you have to factor in consumption by price, but price has been as it is. There might be some drop in consumption. Another important aspect is climate. The slack of rain that affects rice, crops, and bean crops is affecting both crops because of the drought. Therefore, When we look at beans, we think the prices will be more sustainable. Sugar, once again, there will be a global deficit of around 2,200,000 tons. Brazilian production will be good. Sugar is more attractive than ethanol. The mix used to be 65% ethanol and 35% sugar. But as sugar prices are good, this mix should change. We should see 55% ethanol and the rest is sugar. And because of the Brazilian crop will increase to about 41,000,000 tons and the sugar market is is fixed in the New York exchange and the London exchange, but it's mainly fixed in New York. Our next crop season to be harvested in April, 55% of the prices are already fixed and the prop to be harvest in April 22, about 20% is around a fixed at very good prices. The New York historical levels was about 20 12.60 and this year, the average was 13. Pound weight, and this is very attractive to, to sugarcane producers. And this will put upward pressure in the market. It will be bullish. Well, there is an issue with India because once again, India may introduce subsidies Well, it's not certain whether they will introduce subsidies or not to help the population in the field because they use subsidies to, to help growers in the fields. And if India introduces the subsidies, there's may lead the market to go down. Climate again with Lanier maintained climb the weather very dry in Sao Paulo and this should also leads to lower yields. And in turn, we believe that the market should also be firm with sugar. All of the agricultural commodity have a bias of being, you know, flat in the next crop season. Now looking at the fish segment. As I said, in the beginning of my presentation, that was the segment of the company that was the most tense because of steel and cardboard and also the fish raw material. We buy from the domestic market, but for 4 years in a row, Brazil did not produce sardines. So we had to buy from Oroco where we have long time suppliers, 10, 12 beers, and we also develop suppliers in no month. Of course, live there was not easy either because they had problems with the pandemic. The ports were closed. They had to introduce protocols but around May, we were able to grow our volume and prevent stock out issues. We have a domestic fleet that is very loyal. We have the best tuna fisheries. They are all they've been our suppliers for a long time. They're loyal to us and there was a tuna fishing in the domestic market was good. And we also have a variable of alternative, which is to buy tuna from Ecuador. There, we already have a lot of certified producers, but certainly the competitiveness of Brazilian tuna is much better. And to conclude, I would say that our expectation for next year is quite positive with almost all of the agricultural commodities posting sustainable prices in order to mitigate risk. We are still very attentive to the market behavior. I believe that having plans all over Brazil with our popularity and the fact that take advantage of all of the tax benefits and the information on time and real time information we have, we are able to anticipate most with rice, we are not only, not only we are in Brazil, but we are in Chile, Peru, in Uruguay and in all of locations, we polarity. And with that, we can anticipate moves and then be more assertive in the market. We are also very concerned with technology. We deploy the Ariba system that allowed us to have a better management of all of the interact inputs. We We have a better management of all the categories. And with freight, we can anticipate moves. We use the different logistic modes both in terms of, you know, international freight, highway freight. We are very much alert and attentive to the market moves, and we are humble enough to learn and continue to grow. That said, a good event and thank you very much. Good morning. My name is Cristina La Roude. I am the Marketing Officer of Comenity Mesa, and I'm here to talk a little bit about our plan of 2020 and the outlook for 2021. 2020 was a very unusual year, Anika Mu once again showed the relevant of its purpose to feed relationships with the strength of its brands and a strong relationship with consumers. Brazilians had never cooked that much. Every he went back to the kitchen and Camille as very few companies knew how to support this move with brands that are part of people's everyday lives. With commute, we were quick to adjust our campaign and we adopted the theme, home cooking with commute. Home cooking is so good, and the base of our diet is rice and beans. And to do that, we partner with HIPAA Global who is our ambassador to talk about the importance of rice and beans, the different ways to prepare rice and beans, and the different varieties with that combination of rice and beans. We have whole rice, cut back to rice, oriental rice, and Rita more than anyone else through a hub of content was able to to bring all of these range of different preparations of food, teaching people how to store and prepare the food. And we had a marketing program during the entire quarantine. And every 2 weeks, which I would produce alive, showing how to prepare the food and with some important hints. And In the other weeks, we had another influencer working with niche strategies like vegans, flexitarians. And with that, we we were close to our consumers throughout the year. And Onio, this beautiful brand that has just celebrated 100 and 10 years of existence, we produced a new campaign called Uniel Transforming Your Days. What is our tradition when you own transforms the suites and the suites transform our days, bringing those good memories of happy times around the table. The campaign began during the pandemic. It was initially filmed remotely. With small stretches of lives of consumers and the suites that are part of the lives of these families. But with CokerO, we were betting in the frequency of consumption. There are enormous nutritional benefits when you combine tuna and Chardine in the diet of families. There is still a very small the for one person anticipate that sardines and tuna can become important ingredients in a recipe like Mokeka, like they can be using risotos. And this is the avenue we've decided to pursue. With that, our brand have never been so with beans, with Camille and sugar with Munoz as the most remembered bread in the southeast according to all of the auto category. That made us very proud, and we should be thankful to our consumers and clients who make these brands irrelevant. This year as well, The brands had a good performance in terms of market share. And with Sardines, we were able to recover our market leadership. But the company also understands that there are many other opportunities that go beyond that. We have a full portfolio of brands. We operate in different market tiers, and we also embrace regionalists. We have a brand, like Carretero, is a very significant brand in Rio. Paisjour is another leading brand And we also believe that all of these brands At the same time, we understand that when consumers go back home, new opportunities will appear market opportunities and we knew how to address them through distribution and scale and also added value like whole wheat items, addressing healthability, cake mixes. And this is one of the categories that grew the most during the quarantine because people went back home and they needed that cozy feeling of drinking coffee with a piece of cake and also Asian food, the natural sugar lines, like brown sugar and botanic sugar, all of these lines posted impressive growth during this year. But we are not only talking about products. We prepared our marketing strategies to address all of these consumer trends. And we embrace 4 trends this year. Practice, so health ability, and rationality. Therefore, in our social media strategies and strategies over the web, had a lot of posts and content through reader lives or other influencers who talked about all of these aspects that add value to the lives of our consumers. Digital ecosystem of our regional brands. Now brands like Babara, Pescadoun, Paolo, Navorado, etcetera, they have their own website and their own pages on the social media, activating and being closer to consumers. Also this year, bringing entertainment to consumers was also very important. We were betting on our content strategy with all of our brands, but the same time, we partner with other movements in society with lives from singers where we participated donating products and also bringing entertainment to our consumers. Those were huge proud with Lewin Santana, lives from Diego Nogueira, still addressing regional business. And we supported that with Cajepeda, we had Joelma in the north And mainly, we participated in the actions by Coupa UNICEF and now on Christmas This is the 3rd year that we support an action called Christmas with, with no hunger. Now looking towards 2021, we believe that people will continue to cook at home either due to food safety or because it's safer for them to be home, and we will continue to support them through our social media strategies, our influencers and wives. This year, in particular, we are celebrating 110 years of O'Neil, And to make this Christmas, even sweeter, we are responding to all of the media posting, and we will launch a book of 100 and 10 years of Unio. It's a big book it can be used as a coffee table book. And in that book, we will have some iconic recipes from so many decades of recipes. This is a brand that co creates with consumer products, services, and so many other things that people like. We will also talk about the most requested recipes on our website and the stories behind it. This Christmas many families will not be able to be united, but we will try to make them feel united through that special recipe that they share every Christmas that now everybody can make it because it will be on the book. This brand also has a very strong strategy from influencers that will talk about the book, the paper packaging, to recall our history and everything we went with a major promotion. This is the way we found to thank all of our consumers and we want to leave you with a sweeter world. And with that, I say goodbye. Thank you very much. Good morning, everyone. It's a pleasure to be with you today. I'm Max, the commercial officer of Camille. I will briefly tell you a little bit about our strategy, how we navigate it through the year, and how we dealt with this very unique an unusual year, commercially speaking, and how do we see the market looking forward? Well, Starting with the way we are operating in the market, we divided our strategies always remembering, of course, that we keep in mind that we want to pursue relevant organic growth. And therefore, we have different strategies to different objectives. To that end, we created 3 blocks. 1, it's called, you know, share. The other one is synergy. And the other one, we called white areas. With that design then, we drew up our strategies to pursue our objectives in each of these areas. Very briefly, these blocks were divided into regions, products, and relevance, the relevance we have in every area. So when we talk about protecting our share, we are talking about Sao Paulo, Eugene it in the Northeast. When we talk about synergies, we are talking about the south Indian Jira of the state of Sao Paulo. And I would like to refer to the meeting of synergy for us. That means regions where we have a relevant brand or a relevant product. And then we use this relevance of that brand or product to leverage the sale of other products, so as to gain relevance in these these regions. White areas, this is a major challenge we have. We then listed the North Minas and the Cerro Goias. And then we move to the 2nd phase of the strategy, which consists of how we would operate in each of these blocks in terms of channels, customers, and certainly actions. Here, looking at this example in this slide in terms of protecting our share, we focus on cash and carry, large retail, and distributor and our strategy to operate in these areas where we have larger relevance being also market leaders we we have a much more effective presence. We work with JBP as one of the largest customers. We participate in the activation of networks with a with Tableaui platforms. And also food tasting in the sales area. Therefore, all in all, we have a whole package of allocation of actions and market investments in a much more intensive way. In regards to synergies, we focus in the large retailers and distributors and distributors are more focused on distributing fish other added value items. We had several campaigns with distributors. We carried out some promotions. We had promoters in the shops, and we increased the store base of our promoters. And in regards to the white areas, our strategy focused mostly in large customers, basically cash and carry and large retailers. And in this regard, we have logistics optimization due to the low sales volume in some regions. And therefore, we started operating in regions where we are not so relevant, but we were very effective working with less customers but with high, you know, sales, volume. And we, we have a plant in Goias, And there, we were to activate customers to help us expand our strategy from large retailers in the cash segment. Now regarding processes, what are we doing in that area? Processes. We've been working to facilitate the lives of people in the field. We understand that the less attrition on the side of seller the better will be the productivity on their side. We are also working to improve our sales processes. This What we want is to make the lives of sellers a lot easier. We try to improve order taking We try to give them a better management information so that it will have better information to give to their clients We had already several upgrades and in a good development of our Salesforce, which is our automation sales tool. We were able to leverage the member of SKUs sold inside our customers we were also able to leverage you know, suggested products because oftentimes we see within the same region, some customer selling a different mix than the other. And so this suggested item allows the salesperson to purely see what type of product that customer wants their they should buy and that they are not buying or maybe they are not buying a good enough volume and the volume could be increased. So that is facilitating sales and increasing volumes. In regards to sales processes, we are focusing a lot on that 360 degree view, allowing the salespeople to see the status of the order in every given moment and therefore, they can respond to customer much faster. They have better visibility of the order. They know where the order is, what's the status of the order, and this automates the entire process and by the same token, it facilitates the entry of orders the flow of orders as well. We are working to deliver orders much faster. And in terms of KPI Management, we made very good progress in terms of managerial information. We are enabling sales KPI in our sales system, which is called Salesforce, sales reps can easily see their sales status and synergies products in the several categories purchased by the same customer and what their goals are. It it is much easier for the salesperson to monitor his or her own performance. With that, we have productivity gains, It is easier for us to analyze the information and This is updated on a daily basis, and now we are working towards having all that updated online to gain time and be more efficient. And finally, I think it's important to highlight how we navigated through the year. With the pandemic, I think it's worth mentioning that we were after all present in segments that if experience higher consumption, higher demand, people were were home, and therefore, they consumed more food. And that was very good. But on the other hand, When we look at the entire world of sales, There was a big shift. What we saw was the appearance of more ecommerce, especially in regards to basic products and food staple was not so strong back then, but even much so with basic products, but with the pandemic ecommerce really picked up. And how did we deal with that. We began to have a stronger participation on e commerce of our own customers. We have encouraged and participated with them in their own ecommerce. And at the same time, we are also selling through other channels like Amazon, Mercado Libre, which is B2C and B2B as well. Within the platform of Compre Agora, just as an example, that's a a tool that sells to small retailers. We are working with that as well. We are also looking at some market gaps. And with all of that progress, we had in an increase in demand of niche products like Resota RISE and these products increase on a monthly basis. We are trying now to leverage sales in these niche markets. And in terms of the structure of the company, we introduced a new management area for the development of new businesses. The main purpose of this new area is to look at market opportunities and take advantage of them Second point I would like to mention, which was also a big challenge during the pandemic period is how could we have our sales people working from home where we were used to traditional sales when the salespeople would visit our customers. They go. They offer their products, but all of a sudden, everybody is home. Customers are at home. The sales reps are home. We were posed with the challenge of creating a routine to our salespeople. And at the at the same time, we had to be efficient enough to set up a contact with all of our customers, and that contact has to have the adequate frequency. At the same time, we be able to offer our entire portfolio and make sales. To be honest, I was really surprised when I saw the results I think we managed to do that quite well. We have a large number of sales people individuals and firms, I think that the agility we have in our capacity to convey to our sales team what the new routine was going to be. This really helped us to have a strong footprint in the market and be very active even though we were distant from our people. And another aspect which reflects the strategy that we had in our blocks is how we are operating with trade marketing. We had to make important adjustments to our service model the way we serve the market regarding activation for motors and merchandising, And all of that had to follow the strategy outlined for each block. We now have different models just to mention one example, in the case of promoters, we have some service models that check frequency type of supply product channel for every region. And according to show strategy that I mentioned at the beginning of my presentation. We also created a regional trade marketing our service level is very unique when you compare to Greater Sao Paulo where we hold a leading position, our service level is different when compared to what we have in Goias that is a white region. With all of that, we managed to deliver good results. We may we still have a lot of improvements along the road, but we make great progress. And right now, for the commercial area, adaptability is a very important bus word. And we had to be quick to make the necessary adjustments to our strategies because this has been vital towards ADCOME Thank you very much for your participation and attention. And we are now available, I mean, to clarify your questions. And to answer your question. Good afternoon. I'm Erica Magalliance, Director for People In Management. May I become you And today, I have some highlights about our area of people and management during this commute day. We are more than 100,000 employees between Brazil and Latin America. This year, we ranked among the 35 best companies in terms of people management according to Marissa and Valor survey. We also ranked among the 5 best companies in the segment between 3000 to 7000 employees with an engagement rating of 92% and 80% in the Prosperity Index. And we grew in all aspects and questions of the survey. Our social initiatives this year diluted more than 1,500,000 in campaigns with the involvement of our employees through volunteering actions. We also adhere to the movement do not fire on the onset of the pandemic. And that had the purpose of avoiding an unnecessary turnover in our operations. Our competence mapping cycle is on its 3rd year. And this year, we expanded the scope. We increased the number of people, and the process was 100% concluded We also reinstated the engagement of our communication, introducing Kamyo Komeni Kassel, which is a communication app that allows most of our employees to increase engagement. And with that communication became more fluid. And as part of that app in the last few months, we added Camille Valoriza. Camille Valoriza is a program that acknowledges the work of our employees within the scope of the Recwen Assert program of Camille. We also so intensified the communication this year due to the provincial prevention protocols of call it, 'nineteen, we send a lot of communication, we made campaigns and all of that as part of our quality of life improvement as part of Kamiu Saudabi Program. At Kamiu Academy, we consolidated the sales and business schools and knowledge multipliers. And in addition, we increased our technical capacity building program, offering programs related to the business school, the our own initiative where our employees talk about our business to our other employees. We expanded the management minute, and we introduce Camille Flakes. That's a platform for onboard ability, following a 360 degree model through virtual reality. Yet this year, despite the fact that our volunteer turnover being below 3% with a 30% reductionvisavis our lost time accidents vis a vis the year before, we had an investment of 1,000,000,000 a year all of that aiming at improving working conditions and the capacity an increasing capacity building in our units. In terms of management, we are now in the 2nd cycle of our strategic drivers. And this is due to the work we do to the fine targets and defining priority projects with 100% of eligibles with defined goals and other registered through performance models. We reinstated all of our management rituals. We had enormous challenges with digital this year, and we consolidated our monthly results meeting even on even on online mode, our spotlight meeting, that's a meeting where we point all of our KPIs and we were able to maintain our morning managed meetings, even though they were all mine. Still talking about projects, we utilized the methodology for planning and execution of other projects. And all of the projects were very successful with significant results. And we were able to also, train the career track of commute. This happened in the past few months. And this is a tool that will help improve the career of our employees. And as part of ESG, group for inclusion within Camille with a whole agenda of actions for the entire company. And along the same lines. Here, I have some pictures. This is just an example of our school 100% digital. We do not want it to be 100% digital because we believe when all of this is over, we will favor a more hybrid mode, which is a trend to help develop our team. And also here, I have some other examples of Camryukonic sale. And we then move on believing that education and leadership are important pillars for Camille's management. Good morning, everyone. This year, as in any other year, we always face new challenges. And this has been quite unique because when the pandemic began not only in Brazil, but in all of the other countries where we operate that coincided with the beginning of the rice harvest. This is a very single moment This is a moment that is very busy. And by no means, we couldn't afford to lose that moment, which involved receiving the harvest that usually in all of these countries, it happens just once a year, except for Peru. Therefore, we just encounter a brand new situation. Nobody experienced that before, and therefore, we had to put in practice a lot of new protocols to contain the situation We had to introduce new operating standards in order to preserve the health of our employees. And with that, to maintain the work in motion. This post an enormous challenge, and we were able to overcome that challenge. And we did did that very successfully. We did not encounter any problems during that initial phase of the harvest. We introduced important operating and hygiene standards in order to limit the spread of the disease and this was used as an example to other companies in the industry and even the Ministry of Agriculture of Uruguay when they wanted to put in place some operating standards for agricultural industry, they found inspiration in our own standards in Uruguay. In Peru, it was very difficult to operate because there were too many restrictions on the part of the government, the Peruvian government at first, decided to be very restricted in terms of the movement of people operational companies We always we were always classified as an exception company because we work with food but with all of the limitations, it was even difficult for us to comply with all of the requirements in terms of authorization for our people to move around. There were limitations of time. We had to have own our own transportation for our employees. And in Chile as well, there were very limited government standards and this was very much present in the lives of people and companies and also in Uruguay. But amazingly enough, Uruguay was the country that this far had the lowest level of contamination and in Peru, the most restricted one This is where we see In fact, right, on the 1st months after the harvest, after we overcame all of the difficulties and we were able to put all of the the rice into our silos. We experienced spike in demand. At that time, we didn't know whether it was just speculation in people that wanted to anticipate their purchases because they knew that what would happen or whether people would be able to leave their homes. And so whenever they had an opportunity, they will stock up. So right at first, we experienced an high peak of demand, not necessarily consumption, but a high demand on our sales. Then we were positively surprised because we were able to maintain a higher sales flow when compared to previous years. Well, in fact, for several reasons, not only look at reasons, but international reasons as well, this led prices to increase, particularly produce in rice. In turn, this at first, gave us the opportunity to improve our gains there was some restriction in consumption. Demand came down vis a vis the final demand from consumers. Yet our sales to supermarkets and other distributors continues to to perform well because they were getting organized in terms of maintaining good levels of inventory. At the beginning when things were not yet very organized because the market had to react, some of our competitors found it difficult to buy their supplies. And in our case, we took advantage of that opportunity, and we were able to grow sales and increase profitability. Then with time, things became more normal, they became more normal in terms of demand in prices, but prices then were much higher when compared to the previous crop season. And this is now impacting consumption. Every country different situation, but let's say in the case of Chile, where we have greater economic stability, It is difficult for the supermarkets now to accept because they are very concentrated in their purchasing power and even consumers are having a difficult time to accept all of these price increases. In commodities, kitchen, oil, etcetera. And consumption is also lower now And in turn, this allows us, let's say, not to buy merchandise. Unlike in Peru where the per capita rights consumption is much higher. And it's also in Peru where we were able to transfer the costs, not completely, but on average, we were able to transfer most prices, but we're assembling on consumers because consumers saw their income level come down substantially and the economy has been quite affected by the recession. In Chile, I mean, people have money, but they are not used to eating a lot of rice and legumes. And therefore, it's difficult for us to transfer prices because consumption is low. In Peru where demand is higher, but on the other hand, people cannot afford to pay higher price. In the case of Uruguay, where we are merely exporters because what we produce 92% or 90% of what we produce there is exported. The domestic market in that country had a normal behavior with regular transfer of prices. But in terms of exports, which is our main business here. I would say that this is where we find the best behavior as a result of this pandemic. Problems in the 50 countries to where we export all the time. And every year, they encountered a lot of supply issues, but we were able to to fulfill much of that demand and the competition, especially with Argentina, in Paraguay and the U. S. And we have also some competition coming from Asia. Even though Asia has a lot of rice, They experienced a light drop in production, but take issues. And they are having problems in terms of exporting because of lack of people, a large spread of the disease and a lot of contamination. And that's why the ports are not fully operational. There is also lack of containers because the containers are not returning to the markets where they came from. And I would say that in other destinations like Central America and Europe, our sales are starting from Uruguay are performing quite well with price increases that cover our cost of raw material. Therefore, with this backdrop Uruguay, someone called Uruguay, is the company that is posting very good performance when compared to the same period of the year before. And this stems from this international demand that we were able to serve. In terms of Chile, where there are some restrictions in consumption. It's a more mature market with a better income level. And there we were able to transfer prices to consumers. But consumption is dropping in that region, but we were able to maintain good profitability despite the lower volume. In the case of Peru, which is our major challenge where demand would have been higher, but the population cannot afford now to pay for this more expensive rise or a more expensive products and vegetables. They I think they are eating, products of inferior quality they're eating probably more potatoes because Peru produces a lot of potatoes. With that, scenario, we are performing well year on year. I said not only in volume, but also in terms of profitability, And in this next those because things are, I would say, quieter. And the price levels are historically really high, one of the highest, and this in turn affects the cost for the population of lower income. We and people are migrating from leading brands to other brands with lower prices. I mean, lower costs, this does not exist because raw materials are also more expensive. And and at times, some brands are experiencing severe losses in profitability. Well, in our case, we are performing well. I mean, as the Rama material is not so abundant. We have to value it and put it in some of our most important brands. But this we if we only think about share or market value, we did not had any issues with our market share. Our market share has remained the same or is even higher. But by looking at the opportunities, you could think that we could be selling more, but then we stumble into the aspect of profitability. The expectations for the next crop season, if that should start in March of next year, February March. Our expectations mirror the planting season that happened now And the most important issue now is lack of water. There is scarcity of water in the south of Brazil, including Uruguay and in the North And Northeast side of Argentina and Paraguay. And this really affects an impact the largest rice producing area of Mercosu. There may be an issue of acreage reduction in these regions. I mean, productivity or yield will be good because this scarcity of water is followed by good lighting and good average temperatures. And this is what rice requires. Now in terms of grains, like beans and other crops, The crops are mostly irrigated with central pivot, so yield should be good. And the trend for next year is that the supply I mean, it will be business as usual, but maybe slightly slower when compared to previous years. But the major thing that could affect the market and could probably keep prices still high is the lack of an initial inventory from one crop to the next because in view of this present demand, probably the carryover from one crop to the next will be very low, historically speaking. Therefore, we will have to count on the future harvest to supply the following year. So this is true for the entire American Sue region and in part, it's true for the U. S. Another competitor. And I would say that in terms of our next crop season, these the supply would be stable or flat worldwide. But in Asia, there still have some surplus, even though it has been carried over in the past years, but the production in the year experience some reductions. And in Marco Sue, that is an area where production and yield will be lower in comparison to previous years. And without the carryover from one crop to the next, this will have an impact on price levels, regionally, and probably the determining factor to establish relationships from 1 crop to the next will be the exchange rate, particularly in Brazil, the main producer and consumer. And this is what will lead to some possible lack of rise in the domestic market. If the exchange rate is favorable in terms of reaching, let's say, 6 rails for 1 U. S. Dollar, this will generate exports of rice. And By the same token, there will be scarcity in the second half of the year. And if the exchange rate performs the opposite it goes in the opposite direction, Countries in Maricosu will probably will experience some expectations of lack of rice, and maybe we will have to resort to my concern. Well, with that scenario in mind, we in a couple of months, we will put together our budget plan for next year And I would say that today the biggest uncertainty is the exchange rate. Well, With that, we Thank you very much, Renato. Thank you to all of the other directors we would like to thank you very much for joining us during this Camille Day. This year, unlike previous occasions, we are using you know, my platform. So this event is being carried on online. In case you have questions, please use the platform to send your questions we are compiling all the questions that we already received. And just in a few minutes, we will open for Q And A. So that our officers can we will then proceed with the reading and the answer of all the questions. We had a small issue during the transmission of Andre's presentation. So, Andre I would like to ask you to continue your presentation where you stopped, which was when you were talking about beans. So we will listen to your presentation again and starting with the beans part. So last year, we see that the year end inventory, we'll continue to be Unless we a very serious exchange impact, various Next change prices will be flat. Next year, we'll be very for market wage. No major price variation because this year price variation is very intense. To a 115. This has to 115. Highest price This has been one of the highest price variations we've had. Next year, price levels will still remain high. But the variations will be much lower when compared to this year. Now moving to beans, I would also like to talk about our planned distribution from last year to this year The highlight is that we put together a plant in Casa in Parana and we concluded the plant in Aparicio dejiguayanel. Once again, Aparisiba Juayan and not only has some tax incentives, like we said before, but in being that area has a vocation to work with beans. Goias is probably the 3rd or 4th largest producer of beans, and the plant in Perena, the reason why we chose Perena is that Perena is the main producing region in the country. Our plant is located in Casa, is a very modern plant very efficient and they are right in the middle of the beans production region in Varunah. With that, with beans, we were able to get the same thing we have for rice, great popularity. We are present in the major producing states of the country. And with that, we have greater popularity. We have a good structure for beans and rice, and we have buyers in all of the units of the country. And that gives us real time information in addition to knowing where the market is heading to and regions where it's easier, others that are more difficult and then allows us to plan our year, we expect to see still high prices. Well, we don't like it very much, but there are a lot, a lot of speculators in the market. KONabi is anticipating a small acreage reduction the crop season would go from more than 3.1000000to3000000 Therefore, there will be a significant yield reduction, also soybeans. People are fixing soy prices around $140,000,000 to $145,000,000. And because of those prices, people will not be so encouraged to land beans and growers believe that soybean, you know, worth a 140 beans should be 2 to 1, so they should be worth it to 80. Well, this variation is not so direct because you have to factoring consumption by price, but price has been as it is. There might be some drop in consumption. Another important aspect is climate. The slack of rain that affects rice, crops, and bean crops, is affecting both crops because of the drought. Therefore, When you look at beans, we think the prices will be more sustainable. Sugar, once again, there will be a global deficit of around 2,200,000 tons, Brazilian production will be good. Sugar sugar is more attractive than ethanol. The mix used to be 65% ethanol and 35% sugar. But as sugar prices are good, this mix should change. We should see 55% ethanol and the rest is sugar. And because of the Brazilian crop will increase to about 41,000,000 tons and the sugar market is fixed in the New York exchange and the London exchange, but it's mainly fixed in New York. Our next crop season to be harvested in April, 55% of the prices are already fixed and the crop to be harvested in April 22. About 20% is around a fixed at very good prices. The New York historical levels was about 20 12.60 and this year, the average was 13 pound weight. And this is very attractive to to sugarcane producers. And this will put upward pressure in the market. It will be bullish. Well, there is an issue with India because once again, India may introduce subsidies. Well, it's not certain whether they will introduce subsidies or not to help the population in the field because they use subsidies to help growers in the fields. And if India introduces the subsidies, this may lead the market to go down. Climate, again, with La Nina, maintained climb, the weather very dry in Sao Paulo, and this should also lead to lower yields And in turn, we believe that the market should also be firm with sugar. All of the agricultural commodity have a bias of being flat in the next crop season. Now looking at the fish segment, as I said, in the beginning of our presentation, that was the segment of the company that was the most tense because of steel and cardboard and also the fish raw material. We buy from the domestic market, but for 4 years in a row, Brazil did not produce Sardines. So we had to buy from Morocco where we have long time suppliers, 10, 12 beers, and we also developed suppliers in no month. Of course, live there was not easy either because they had problems with the pandemic. The ports were closed. They had to introduce protocols. But around May, we were able to grow our volume and prevent stock out, issues. We we have a domestic fleet that is very loyal. We have the best tuna fisheries. They are all they've been our suppliers for a long time. They're loyal to us and there was the tuna fishing in the domestic market was good. And we also have a viable alternative, which is to buy tuna from Ecuador. There, we already have a lot of certified producers, but certainly the competitiveness of Brazilian tuna is much better. And to conclude, I would say that our expectation for next year is quite positive with almost all of the agricultural commodities posting sustainable prices in order to mitigate risk. We are still very attentive to the market behavior. I believe that having plans all over Brazil with our popularity and the fact that we take advantage of all of the tax benefits and the inform information on on time and real time information we have, we are able to anticipate moves. With rice, we are not only not only we are in Brazil, but we are in Chile, Peru, in Uruguay and in all of these locations, we have good suppliers in Argentina and Paraguay, So in all of these areas, we are increasing our popularity and with that, we can anticipate moves and then be more assertive in the market. We are also very much concerned with technology. We deploy the Ariba system that allowed us to have a better management of all of the indirect inputs. We we have a better management of all the categories. And with freight, we can anticipate moves. We use the different logistic modes, both in terms of international freight highway freight. We are very much alert and attentive to the market moves, and we are humble enough to learn and continue to grow. That said, a good event and thank you very much. Good morning. My name is Christina Laa. Thank you, Andre. Now we will proceed with the Q And A session. Please use the webcast platform and our Investor Relations team. They are also receiving questions through WhatsApp and our IR page. The first question comes from Isabelle Simone from Bank of America after such a strong 2020 in terms of volumes for sugar and rice, What is your expectation how much of that you think will come from market share gain in both categories? That's a very good question. In fact, our first half was very strong. We think that this probably or obviously came due to the pandemic and also lower consumption through the food service and all because everybody started cooking at home or eat from home, and then there was a declining inventory during that period. I think during our last quarterly results call, we talked about the effects of coronavoucher overconsumption. Our expectation is that this additional money was mainly earmarked for lower price rice people that didn't have that much access, but as they received the emergency aid from the government, they could afford to buy other products. And as in our main brands in Camille is not that much present in that market, we didn't have any direct impact We also believe that with the end of the emergency aid or the food voucher, the impact extra company will not be so, so strong. And as we see high specs and declines in GDP. In our industry, we do not feel a lot of impact in terms of increases or decreases in consumption. This is due to the resilience aspect of our sector. The effect that we are seeing now or this increased sales in the first quarter shows that some of the countries experience an acceleration, but soon, we should resume regular sales levels. Now we see because of inventory levels, there will be smaller sales. And I mentioned what happened in the industry in October, But now to be more direct in terms of answering your question after putting things into a perspective, the company is constantly looking for a 4% to 5% growth in volumes. This is our aim. And in order to do that, we are constantly investing in to gain scale and in the past years and months, we've been focusing quite strongly in this area. And as Andre was saying, we've had new plants. Last year, we also invested in a new plant for sugar packaging. Just to mention a few examples to illustrate what we do to increase our efficiencies. And certainly, as a result, this brings about more profitability, and it helps us consolidate our our intent to consolidate the market. I believe that the number I mentioned between 4% to 5% is what the company has performed historically. Also, I mean, removing their recent past, you know, after the IPO, we had a strong move just just a reminder, maybe I, I may be anticipating the answer to another question, which is usually happened. Raw material prices usually have a very strong impact in our segment. Our industry usually transfer prices. Therefore, the significant increase of over 100% in the prices of rice that we had this year. I mean, it's done. And in the 2 years following the IPO, which were hired years, were years where we experienced price drops or price levels that were extremely low. And at the end, I mean, this is bad for the entire industry, not only come you alone. Just to mention a few numbers in 2018, 2019, Rice experienced an average price bearing between 40 to 45 BRLs this year the average should be 80 BRLs, the price for 50 kilograms of rice and beans throughout 2018, the price vary between BRL 100 BRL 100 BRL 120 BRL. And currently, the price was between 25300. And sugar that used to be about a 1000 barrels per tonne is about now 14 or 1500 per tonne. And these are the costs of our raw materials. This shows that the company is now at a new level, and this level is very good for the entire chain, not only our company, but our suppliers, retail, this helps us to dilute costs. Once again, the company worked diligently in an attempt to get more efficiencies and certainly with that, we gain competitiveness. Once again, without giving any guidance, this demonstrates what we see looking forward in terms of volumes. The next question comes from you to Kitiki from JP Morgan. I think you already talked about the pricing expectation for Rice next year. But we also noticed that this year, Brazil exported a lot of rice during the year. And Ian wants to know whether we believe that this will continue to happen next year and may as well limit the supply from Mexico and how would this impact prices? That's a good question. Speaking a little bit about the rice crop season, think Andrea already talked a little bit about that. And I did so during our last earnings result call because it would very much depend on rainfall the end of October, November, and early December. In fact, rainfall was was not as expected was very, very weak. And because of that, I think we should expect a lower crop season in Gil Grand Jesus. I've heard a reduction in yield of approximately 3.5%. And therefore, production and Brazilian consumption should remain fair. Obviously, exports depend on the exchange rate and international prices. But during our last earnings results call, we mentioned a price expectation for next year ranging around R70 to R80 BRLs. But considering current conditions, I think we lean more towards 80 than 40, but we still have to see any impact on production in the next coming years. The next coming days. Exports should then increase the effect of lower yield and higher supply in the Brazilian market. And this should lead to a similar effect that we saw this year when Brazil had to import in this cause internal prices to go up. Being more conservative, the company remains with that range between 70 to 80, but leaning more towards 80 today. Thank you, Luciano. Our next question comes from Felipe, he's an individual investor. Is about IBG survey that show that rice and beans consumption has been dropping in the past years. How does the company see that in terms of demand and also the fact that you operate in this industry? I have 2 comments here. This is also a very good question. The first comment is that Our industry, I mean, the rice industry conducted a survey a few years ago, showing that there was a slight decline in Percepta consumption. But when we look at historical data, Kornabi, population of growth, this leads us to conclude that they that there is a slight decline in per capita consumption. So despite the fact that there has been a slight reduction this year, the market has not been growing or the reduction has been very mild. This does not change. The expectation or the ambition of the company because our market is highly fragmented. As a reminder, Camille's rice market share in Brazil is around 13%. The second the second competitor here around 5%. Therefore, our consolidation possibility is very large in the Brazilian market. Even considering this slight decline in capital consumption. This is not a concern of the company. The trends that I just mentioned of a possible stability or about reduction is something that we've been monitoring for the last 10 to 15 years, and the landscape has been the same. And during all this period, We were able to grow, and we were able to move towards consolidation. Eventually then, if there is further reduction in per capita consumption, this could also be a trigger for us to increase the pace of consolidation. And this may at the end, you know, lead to the exit of smaller players in the market. Therefore, this is not an issue of concern for the company. Thank you, Luciano. Our next question is from Clarissa Fernandez. She's also an individual investor, and maybe Flavu can help us here. The question is the company has been delivering extraordinary results, especially during this year. And what will be the projection looking forward? We announced a dividend payout and entering dividend payout of BRL 150,000,000 in addition to interest on equity on the 3rd quarter. So how does that combine to the results of the company and what is the outlook looking forward? Flatika, thank you very much for your question. When we talk about catalogation policy in an optimum structure. What is our policy and our best practices? Camille does not have any written policy about dividend payout, but in practical returns, since the IPO we've been paying approximately 25 percent of the accounting net income rather than the adjusted net income of the company. But this year, in terms of result, we performed very well. Therefore, our results were good. And this debate about how much capital we will allocate for the payouts to our shareholders, this is a constant issue debated by the board. And in view of this exceptional result that we delivered, we decided then to pay out 150,000,000 barrels of interim payout, which is in addition to what we usually do. And this comes as a result of the positive earnings and results posted by the company this year. So the question also is what do we see looking forward? I think that what we see if we look towards the future is paying that 25 percent dividend payout on that income. And certainly, we are constantly monitoring to see whether there are further possibilities to pay anything extra. What I would like to reinstate is that even though, we we had a very significant interim payouts. The company continues to have a very good and sound financial position in this year because of this result. The company has reduced its leverage And when we look at the remainder of the year, we believe that this will continue to be settled in view of our positive results and Seasonally, this is a period where we release working capital and we release cash. Therefore, our leveraging should remain low and Once we combine that with significant results, this gives us more breadth to continue to pursue our strategic objectives and to make acquisitions. Therefore, the the size of the check we can sign today, it's it's higher than that of last year. Therefore, to conclude, in terms of dividend payout. We had this interim dividend payout, but this does not remove our possibility to continue investing in organic or inorganic growth Thank you, Flavio. Our next question from Luciana Carvalho. Of Brazil, her question is about the company's growth strategy, whether you could give us an update about the acquisition of pet food in Chile. And if you could tell us a little bit about the main opportunities you see in the period post pandemic, Luciano said that we intend to enter into new categories like wheat and that we intend to expanding to South America. So what would be the categories or the geographies where you believe that you have better opportunities? Well, thank you. I will start answering a question and we'll see on O'Canad. In terms of our acquisition in Chile, has not been concluded yet. There has been a formal approval by the regulating agencies authorizing the acquisition, but what happened is that earlier this year, the company had a quality issue in its main product, And that led to a recall of the main brands into a reduction in the company's operation until they were able to take all of the necessary measures to adjust the formulations of the products. This had then an operating impact on the company. Therefore, all of the conditions of the contract were not met. Therefore, we continue to wait until the company gets back on seed and has good results in terms of sales and production. And then we will discuss again and see how we will conclude the transaction. And in strategic terms, we still believe that this is an acquisition that makes sense. When we look at Chile, the pet food market in Chile is growing, And Chile, that industry had a lot of synergies both commercially and logistically, even though it may not seem to be an obvious target, it would make it made sense in Chile. Therefore, we are still waiting until the scenario clears up and then we will sit down to revisit that agreement. Now speaking about the company's growth strategy, It remains the same as in the past years. We intend to consolidate the grain market in Brazil, and this can come through organic growth or through acquisitions. We also wish to entering to new segments in Brazil as we did with sugar and fish, and that was a very good experience. Therefore, the company believes that high turnover categories are have very good synergies with our operations. Coffee makes sense, which makes sense because the company therefore has been looking for opportunities in these areas. Now looking outside of Brazil, Chile as the example of the pet food is an example of diversification in Peru. We also have great opportunities to consolidate the market. We have a good market share in the market package rice, but in Peru, more than 80% of rice consumption is still in bulk. In Brazil, it was like this back in the seventies. Therefore, we are getting ready for this migration, and we believe that this will also happen in Peru. And in addition, the company is looking at other countries in South America. I've been saying that Colombia is an old desire of the company. We've been monitoring the Colombian market for quite some time. And we've been constantly looking for opportunities in that geography. So as Flavia said, the company is financially sound to do that. We are more prepared than ever, and we are constantly looking for these opportunities. So this is our growth strategy looking forward. Thank you, Luciano. There is another follow-up on Luciana's second question. And adding to what you said, when you refer to your growth strategy and your capital structure, that the company throughout the pandemic period, the company was concerned to preserve its cash and liquidity position. Lawview also talked about the leverage levels that are coming down and they are being reduced. You talked about a dividend payout issue, but how is your capital structure from now on and how does that relate to your strategy to grow, expand and to make acquisitions. Well, thank you. Just As a recap, earlier this year on the onset of the prices, we adopted a conservative position to preserve our liquidity. So back then, we got some funding, no, in Brazil and Abroad, and we were able to raise almost BRL 1,200,000,000. At the time, that was a short term debt. It was expensive. The cost was high, but that what was available. And we in Brazil, mainly in Brazil, we are now starting the refinancing of the debt. We are now extending the payment terms. So from the 650,000,000, we basically refinance that amount to 4 to 5 years at lower cost. This also shows that the company is capable of adjusting itself and to managing things that are doing all the liability management so that our capital structure can be well supported. Now looking at leverage levels, we understand that today, we are at the suboptimal level. In terms of restrictions in our contracts or agreements, is up to the limit of 3.5 times net debt over EBITDA. And today, that level is much below that. Once we look at the alignment of our capital structure, our capacity to leverage in our strategic objective, we would like to find ourselves in the leverage level above what we have today for some good reason because we were able to conclude some acquisition that is relevant And we always say that the priority in an acquisition is through leveraging or net debt over EBITDA ratio where when we can generate higher higher value. So looking towards the future, we wish we could work with higher leverage because of our capacity to execute some acquisition that can be relevant. Thank you, Bobby. Our next question from Leo Fontanesi. From Bradesco. Just changing gears a bit, he would like to learn more about the company's strategy related to your channels throughout time. We are seeing the consumption migrating towards cash and carry. And how do you see and how did you see that during the pandemic period and looking towards the future? Well, cash and carry is a channel that grew substantially in the last few years. Camille is very strong in distribution in the Southeast region where cash has been very important and with a very good footprint. Therefore, this experience with cash and carry, something that the company has experienced for a long time. I believe that this will grow also outside the Southeast region. And we also believe that we will be able to serve on that growth wave because we've been living with that for a long time. There are 2 major features in this cash and carry system. And one of them is that, obviously, I mean, they are some of our largest because customers, but I always say that it's it's like we mutually depend on one another. We have this, a very large customer, and they need us because they need to have some good suppliers. And therefore, there is a ball a balance. So we have them as our partners, and our expansion process to outside the southeast is also helped by them. So they are helping us with this because of this long time partnership we have with them. Now I just forgot the second point I was going to mention. So, okay, let's move on. They are important. They grew a lot and they continue to grow. They are good customers to negotiate with, but above all, there are good partners. And we've been this relationship has been around for a long I mean, I remember now what was my second point. I mean, the company, like other companies, Camille, with them, we never tried to have a different brand or different packaging. This is not so common when we hear other companies in the way they want to operate with in this cash segment, we try to exploit this strength point from them and the growth also. This was the second question I remember earlier. Thank you, Luciano. Now let's get into a topic that has received A lot of questions, and this is related to ESG. We have a question now from Andrew Matos, And how is the company positioning itself vis a vis green policies? We see a lot of move in that Russian towards a sustainable society and Gustavo Troyano from Itau BBA. Said that this is a topic that is gaining a lot of momentum in a short period of time. And we would like to hear from Camille, how the company is getting prepared to face this new reality. We learned that Camille just introduced a new ESG internal committee, but probably if you could give us some more luck in terms of what you're doing and whether you would also have any evaluation targets from the board or the company visa BSG. Thank you very much. In fact, this is a very current question. As you said it yourself, this topic has gained momentum. And It's present in all of our conversations with investors and conversations with members of the board. This topic is increasing in relevance. And once we look at Camille, and, or governance and sustainability practices. This topic has been amongst from the very beginning. It's part of our DNA when people started to provoke us and do ask us about what we do in relation to ESG, we arrived at the conclusion that we were doing a lot of things, but we were not so well structured and even to be able to answer to all of your questions. Because it is present throughout our organization in order for us to structured this topic better, then we put together a committee. This topic, it's present from top to bottom of the company. Our board has talked a lot about that, whenever we talk about governance and governance is has to do with how we can make this company perennial and have all governance structures working independently from the controlling agent. And because of that, we revisited all of our committees and all of our all of our initiatives. So as as of next year, we will have an ESG committee that will focus on these three topics. We will also introduce and a strategic community to monitor and to evaluate, to do strategic planning, and results monitoring, evaluation, M and A screening. We also have a financial committee in charge of risk assessment and a policy of hierarchical authorizations we have a committee for people in management that will do an evaluation, not only of the company, but but all of the incentives plans and how we include this management culture in the company. We also have an audit committee in this past year, we turned that committee into a statutory auditing committee that complies with all of the requirements set up ICVM. We also introduce our tax committee. And even though we are a controller company, In our board, we have 7 board members, and 4 of them are independent members. We have some independent board members that have the skin on the game, they also have a stake in the company's capital, and all of our board members have extensive, experience, and they're interested certainly in the good performance of the company. Therefore, ESG has been a constant concern of the company. When we refer to the ESG committee, we also put together very clear guidelines. For us, ESG goes beyond being just an internal debate of the company, but it also involves all the other stakeholders, being our shareholders, customers, suppliers, employees. And we are very pragmatic in the company. We are putting some land magnifying alliances to discuss some actual topics we want to make our choices and understand what matters to our stakeholders. And then focus on what matters because we understand it as the system is so broad. Certainly, we won't be able to embrace the portal, but we want to make an impact on the things that we decide to do. To the end, we are putting together some working groups that we'll report to that statutory committee that responds to the board. And just to give you a few highlights of think that we are already doing. In regards to the environment, 95% of our energy, of our power is renewable energy. 40% of it comes from our own production through the burning of the rice hull. In terms of supply, we are very much concerned with the origin of the grain, We also look at how we can foster growers here. We we give more than 150,000,000 barrels helping growers now small and midsize growers. Or people who has a higher credit risk, but this is part of our contribution to society. On the social front, particularly this year where we had the pandemic, we offer more than 200 tons in donations and we picked as a focus of the communities surrounding our facilities where we operate. I mean, in the geographies where we are present and where we think that we could make a difference, giving back to society. In terms of people, we are concerned with diversity and inclusion. And Erica just talked about all of our initiatives in terms of health, work safety is on our priority list and and that involves not only Erica's department, but everybody else's as well when the employee goes to work. They want to be sure that they will go home at the sound. Nobody wants to see accidents in the company. And still on the ESG topic, for the next fiscal year, we decided that the entire executive. All of the executives would put ESG in their own areas. And Therefore, the entire company put their hands in the pocket because at least part of the compensation, the variable compensation for next year will come once all of the goals are fulfilled. So we tied the goals to the variable compensation of the of our management. And we decided to monitor that through symmetric today. We are still in the initial stages of this process. We are discussing what are the most relevant topics, but the idea is that we will elect some projects and some indicators and also that we elect the targets and then that we start communicating these goals to the market so that everybody can monitor Well, I'll try to combine some questions because I see 4 questions on the same topic. Maria Limica, she is if it's an individual investor, Karma also isabella Simoneato from Bank of America, and he from JPMorgan. The question is about the company's acquisitions and how is the pipeline for next year and where it would make more sense for the company to invest. Given the addition of pet food in Chile, whether you're also interested in investing in pet food in Brazil. Moreover, how do we see the timing and the main categories that we see looking forward? Which ones would be more feasible and whether the investments would come, not only through acquisitions, but organically as well. Well, most of the strategy in the industries that we believe to be interesting. I think that pet food, as Flavia said, in Chile, that was an operation that had great synergies with our distribution and our operations in Chile. In Brazil, as we did in Chile, we can evaluate some opportunities that may be out of the oxpress just to use a different expression, but they also have been tuned with our strategy. We are not going to get into different segments just for the sake of the opportunity. In fact, it has to have some strategic alignment. Sense to us and it has to have synergies. As I said before, the company is very well prepared now to give the next steps. Every time the company looks at a new segment, we try to enter this new segment through acquisition, never organically. And that thing also happens when we enter into a new country is always through acquisition. We believe that this accelerates our learning curve and it helps us operate better in that segment. That's how we enter in your buy, Chile, and Peru, and this is how we enter into the sugar and fish segments, and it will be the same way. And this is how we will enter in these new segments in the countries I mentioned before. In summary, we remain prepared more than ever, as Flavio said, with low leverage, which allows us to seek for larger opportunities. The company is now at a little level of results. Therefore, opportunities can even be better. And in my view, what's more relevant is that the company will follow on the footsteps of what we did in the past. We have our metrics to value the assets and to do the valuation of the new opportunities. And we will not let go of the we've been doing it in the past. It may take a little bit longer than maybe we want it, but we will do things the way we You have always done it because this mitigates risks and possible mistakes. I think this is what I had to say about that question yet. Okay. We have just one more question from Heno Orischis from Infinity Investment Group. What is the ROI level that the company looks for whenever they analyze a new project? Well, thank you, Hana. That's a very good question. When we look at any investment, we try to be very analytic when it comes to approval. We look at payback and all of the other metrics. And our objective is to have a 15% ROI. ROIC. Historically, this is what the company has delivered. And I think that as an additional comment, This is part also of what is the appeal of Camille as a company. When you look at our business model, We have a growth pillar because of this dynamics of organic and inorganic growth in is another very strong pillar that is resilient. So that is the chart we always show that shows a 10 year line EBITDA of around 10.11. This resilience and results stability is one of the strengths features of Camille. Therefore, when you combine a company that has resilient results, we don't really have that urge to invest in our conversion index of EBITDA to free cash flow it's quite high. So let's take a reasonable result. If you take a reasonable result and stability this generates further leverage capacity that in turn is translated into a very interesting return on equity. And to make a long story short, I think this ROE is very much related to our business model and all the strengths that Camille has as a company. Thank you, Flavium. Well, we finalized all the questions we had, if there are further questions, please feel free to do so. Our IR team is here available to you after this event through all of our channels, be through our website or the area. And now I'll turn the floor back to you for your final remarks if you would like to say anything else. I would like to conclude by thanking you very much for joining us. I've said it in other occasions that for us as executives of this company, and I can also say that in my capacity as shareholder. This year, we had mixed feelings because we are going through this pandemic. On the social point of view, we have large economic issues, but by the same token, the company is posting record numbers at levels that we've never experienced before. So this is a mixed feeling of a great accomplishment because of our performance whereas at the same time, we're very much concerned with the population and with the economic and social aspects of the country and being more pragmatic, the company has always prepared itself to face diversity. As Flavia said, resilience is part of our DNA. We've been posting stable results. The company tries to always be better prepared and ready to face competition. And at the same time, deliver growth. In a year of great difficulties, this was a big task for us. So we have this feeling of mission accomplished and we acknowledge our good results. So that's it. Thank you so much for joining us. Thank you for participating in the event. As Guilherme said, we are available in case you have any additional questions. Thank you and have a good day.

• Slides