Hello, good afternoon to everyone. Welcome to the Universe Fras-le Mobility 2023. I'm Jessica, and I am Investor Relations Specialist at Fras-le, and we have this meeting today along with the executive team of the company. This event is held in person in Joinville, Santa Catarina, the city that is the home of Fremax, one of our business units, and also has live broadcast by our YouTube channel. Before we start, I'd like to reinforce that the information addressed in this event are not a guarantee of performance involved risks and uncertainties in regard to future events, therefore, depend on circumstances which may or may not occur. Fras-le Mobility is a company with the purpose of providing the best experiences to their stakeholders, collaboratively and responsibly, delivering consistent results with an innovative profile. For this purpose, we plan today's agenda.
In a summarized format, Sérgio L. Carvalho will start with a brief word, followed by following speeches. We are not capital goods, depend on the value of being nearby. Then we'll have value being close, then strength of working together, a coffee break, panel growth is a constant journal, mobility routes, the future is already been mapped out. Then we will give out the APIMEC Seal, and then a Q&A session at the end of all the presentations. As we showed you in our agenda, you can interact with us, so send your question at any time throughout this event, so that you can answer it at the end of our Q&A. Just access the QR code on the screen. If you're here in person, you can raise your hand and ask your question at the end of the presentations.
Now, to officially give start to our agenda today, I'd like to invite to the stage our Director of APIMEC, Mana Mainaishi, and the Director of Investor Relations, Emerson de Souza, to give the Quality 2022 Award.
Good afternoon, everyone. Thank you all. It's great to be here, and... We deserve this quality award. I think that the service the company provides to the market throughout the year and answer a lot of difficult questions. You know our team of analysts and market professionals, so it's a pleasure and a source of great pride to give you this quality award from the meeting last year. I think you're super competitive. Just from the meeting today, we can tell how this team has worked towards disclosure, being close to the market and with company governance.
Congratulations, you all deserve this award, and to give you this, it's more than an award. It's thanking you for how well you attend the market, the financial markets. Very quickly, I'd like to say that Fras-le won the award in 2022. We know our size, we like to grow, and this is an answer. It's the quality of our personnel, the market, and what we do every day. Thank you very much. We have great respect for APIMEC. 22 years that we've counted on the support of APIMEC. We know how important you are to the capital markets, and it's a source of pride to be able to collaborate with you. Thank you very much. Congratulations. Thank you.
Thank you, Mada. Thank you, Anderson.
Anderson already commented, but I'd also like to say that this meeting, supported by APIMEC, and they've been supporting us over the last 22 years. Always connected with the future, Fras-le Mobility is connected to the latest mobility trends. This strategy is based on pillars, which project the company towards a more promising future for each of its units, employees, and business partners. Now, for opening words, I'd like to invite our CEO, Sérgio L. Carvalho. Sérgio, welcome.
Thank you, Jessica.
... Everyone, good afternoon. Welcome once again. It's a pleasure to be here with you and to be able to share a bit about Frasle Mobility. You saw on the agenda that Jessica shared with you, it's a very rich agenda. We'll have panels and presentations, and all of this, we hope, helps you understand a bit more where we're going with Frasle Mobility in its new journey. We have this team that's here in white with you. Everyone, almost everyone is wearing white tennis shoes. And we've taken a company which has always been great. If you've covered Frasle Mobility for several years, you know this. It was always a very good company, but in the last several years, this team took what was good and made something much better.
Now we'd like to write another page for the company and elevate it to an even higher level of what we're facing today. What we want to do with all these presentations this time with you is to share a bit about how we wanna take the company to a higher level. I hope that at the end of this presentation, you'll be able to see that we have a history; we're cohesive; we have the capacity to make this happen. I hope you all have a great event, and I'd like to call Jessica back to the stage, who will continue our event. Thank you, Sérgio. We've had a few technical problems with the presentation. Now I'd like to invite Emerson, our Director of Investor Relations, to come back to stage to talk on We're Not Capital Goods. Thank you, Jessica.
Today, I wanna be able to share with you very clearly how different we are, how distant we are from a capital goods company. I insist on stating this, because oftentimes, we'll have a sort of difficulty in understanding the industry or the style or the nature of our business. We have huge respect for the analysts who cover the company, but we know that many or most even, that cover Fras-le, cover industrial companies and companies that cover capital goods. When you cover the companies, they're with these. We need to do our part to be able to show off the differences of Fras-le, and that's my role for you here today. I want to share with you the story of Lucas. I joked around saying that we have a lot of people here called Lucas, so I chose this name on board on purpose.
Imagine Lucas, a head of a household, around 40 years of age, 2 kids, one, the oldest, 17, and a younger one, 7 years old. He does a routine in the morning where they eat breakfast together, they schedule their day, and Lucas will leave his younger child at school, and the older child plays sports. So then he leaves his wife at work and then goes to his job. When he returns in the evening, he'll gather everyone back up. They have a farm outside the city where they want to go and celebrate a special date, a very relevant and significant date. They're buying a new apartment, and their wife is dynamic and fluid. It's in movement. Lucas all of a sudden had a problem. He saw that there was a hole, but unfortunately, he fell in the hole and his car was damaged.
His car was damaged. Oh, man, that's a bad thing. No one expected this to happen. He got frustrated. He said, "We would go to that great event and celebrate the new apartment, but now my car broke down. I didn't see the hole, but it was there. Why? I was driving." Unfortunately, Lucas had some unscheduled expenses. But he didn't want to know if the dollar was at 5 or 3 or 6, if the GDP would be 3% or 4% growth or 10%. He didn't care if there were challenges in certain markets, the agricultural market went up or down, or if there were credit lines to buy or sell trucks, to sell agricultural machines. He went to the mechanic and resolved this problem. The mechanic said, "Lucas, a pivot broke here. I'll have to change it." And I'm gonna tell you something else.
I would put Fras-le. I would use—I would put Controil parts. After resolving all this, Lucas went home, and he was able, still that same day, see his family again, and they went, and they went out, and they were happy. All this happened because life is dynamic, life is fluid, life happens. If we're a company that has a fast response so that Lucas won't waste a week waiting for his car, or won't have to get approved to buy another car. He decided to fix his car. That's our market. Lucas's story happens every day, every day. At any point in time, we need to switch out our brakes, and there's no choice. It's mandatory. If you don't have a brake, you have to switch it out. If your pivot broke, can you drive without a pivot? No. You have to switch it out.
Best of all, Fras-le sales products, this will happen every cycle. Here in another year or two, they'll have to switch it out again. It doesn't matter if the economy is going up or down. Obviously, there are elements which interfere in the dynamic of the business, but we sell parts and solutions to the market. It's here, the fleet that is circulating, that's not connected with production. It's connected with people's day-to-day. Look at the profile of our company. We are a company that developed an ecosystem. We were able to deliver that part quickly. We have a huge network, and Paulo will talk about this, but we're able to be very effective, very quickly to deliver. Going back here, we also have support, which is important. Go back to the slide, please. One more. One more. We created an ecosystem where we have support for parts.
We don't have to manufacture everything because we have sourcing that supplies us globally. That sourcing is quite developed. We can have a reoccurrence of demand, which is much more connected to the fleets that circulate. And yes, we have some things that we sell to OEMs, but the replacement parts, spare parts market is so great that the variations impact us little as a business. And obviously, we created a logistical know-how that with our clients, allows us to be agile and the primary solution for our customers. Please go back one slide. We are a benchmark. We're number one in the market, with over 5,500 employees in over 125 countries, with an EBITDA margin in these nine months so far accumulated 21.4%. 35% of what we deliver and sell, we don't even manufacture.
We use global sourcing, which supports us, and thus we're able to be very efficient in the delivery of our products. Finally, we have a connection that's not just domestic. Almost 40% of what we sell is not in Brazil. We have a footprint that's global, whether it be in production or a client basis, which we support through these brands with our global products in all the continents, in over 120 countries. Almost everything is related to the spare parts market, which is connected to what I told you about Lucas. Last but not least, we have greater space in just regular cars, not commercial vehicles. We're leaders there as well.
But the fact is, the fact that we have a connection with passenger cars allows us to have elasticity to surf the demands the market presents, because the size of the fleet is quite large. Very well. I'd like to thank you, and yeah, thank you for the opportunity. We're not a capital goods company. I hope it's helped you understand this and the dynamics that our market goes through. And I'm available if you have any questions. Thank you. Thank you, Emerson. Recognized as one of the largest global factories of friction materials and as a market leader in replacement of auto parts, Frasle Mobility places high-quality products available to consumers, as well as original parts, OE, for iconic brands with global reach.
... This year, we changed. Now we're Fras-le Mobility, and we can be seen as a company with a new identity. I would like Emerson to return to the stage to mediate the first panel of the afternoon. That will be done by Paulo, the Director of Fras-le Brands, and Sergio Martagnolle, Sales Director, Marketing of the other Fras-le Mobility brands.
Good afternoon to you all. Well, we need to clearly approach the predicates we've built with the Fras-le history, trying to show quickly the capillarity we have. But it's great to hear somebody from the market, Paulo and Sérgio Montagnoli, are the guys that are in the forefront. They define, they have the sales strategies at hand. Paulo, I would like to ask, from the bottom of your heart, tell us, why do the customers see Fras-le Mobility as a different option in aftermarket Brazil? Very well, Emerson. Good afternoon to you all. It's a pleasure to be here once again, another year. Fras-le, we are a group of companies with a vast portfolio. Can you go back just to explain? We don't see in the screen in the front, I can't see what... We are a group of companies.
We started with friction, and we started adding to the product portfolio, correlated. We entered with discs, cubes, drums, light line. We've entered with motorcycles, then shock absorbers, bars, suspension, and we've created a product portfolio with over 2,000 SKUs. These 12,000 SKUs we have, they serve a portfolio of over 20,000 applications. This makes us a company... Oh, here we go. It's an extremely relevant company to the market, essential. We have a product, complete product portfolio. Our salesperson goes out with his material. He gives the entire portfolio to the market for several applications, different vehicles. We cover almost all vehicles running in Brazilian domestic market, with a vast number of options and direction suspension. So with this, what happens? With this, we gain a lot of relevant, relevance in our distribution in Brazil.
If you look at the top 10 distributors in Brazil, we are the number one supplier, most important supplier for 7 of them. From the first supplier, the third, the 10 biggest in Brazil, we are there as the main source of supply. Why? We have a vast portfolio of products. We have many brands. We have many brands, 17 brands in the market, serving all access, high price, medium price, competitive price, economic line. For different lines of products, we have different brands. They don't compete amongst themselves. We are in every niche, different regions of Brazil and the world. You know, this topic of brands, we like to talk about it. It's very recurrent. We want to know, does a brand have a value? And I want to know, brand has a value in reposition or no? So it might be seen different.
Auto parts go in the car. Do you know the auto part that goes into your car? Yes, this makes a lot of sense, because when we're talking about the auto parts market, we divide in two markets. The manufacturers, that the car leaves new, brand new, so the consumer doesn't know what part is in there. But in Lucas, and the mechanic that repaired Lucas' car. This, yes, Lucas opens the wallet to pay, and the mechanic opens the box with a brand to do the repair. So this is a big difference of the importance that the auto parts have for the different segments of market. When we talk about the industry, a brand new car, that the brand is goes in the vehicle and part or aftermarket. What's a strong brand? One more. See that brand, it's not just to generate demand, to repeat the purchase.
You will only do this if the experiences you had with that brand are satisfactory. Here, brands that give out good experiences will make you repeat them, even with small price variation. Wow, I started talking about price. We're talking about strong brands that make their price more resilient. This is value. This is already a value. When we talk about mobility, I will attend to the main brands, brands in Brazil, 17 in the world, but we talk about brands that have Nakata, 70 years. Fras-le will be 70 years old. We're talking about iconic brands, known important brands for the segment, and this is value. Not just for the value itself, but for the entire mobility brand. Am I clear? Yes, you are. We had support materials to bring. We didn't bring a bit of the experience of these brands. You want to tell us more?
Our brands are annually elected by independent institutes. As you want to separate per product, because I have several products. For each product, our brands are among the second and first choice of the mechanic. Making a reference to what I said, the choices, the good experiences generate recurring choices. Recurring choices make your product, the price of your product, be more resilient to variations. Very good, Sérgio. They are elected every year, every brand. That's great. We talked about brand. We said we became a dear company, but tell me, if I am Lucas and there's an issue with my car, it's easy to purchase a Fras-le Mobility part. Where do I find your parts, Paulo? Without a doubt, any region of Brazil, any city of Brazil, he will be well served. We have the Brazilian market is huge, is vast. There's huge coverage.
For example, we have in Brazil over 75,000 workshops, and we are fully convinced if we don't cover them all, we're very close to that. Some of our brands are in... Some of our brands will be there. Some of our brands will serve the mechanic, will serve LucasCar. We have a network. Over 500 distributors in Brazil buy directly our product. We deliver in over 13 points of sale in Brazil, or delivery points. We have all cities mapped out. In all Brazilian cities, over 50,000 inhabitants, we have a distributor or a sales rep in the city. One of our brands, if not all. As I said, we have over 12,000 SKUs. This is diverse. We have five distribution centers, all distributed in Brazil to serve better the different regions.
A lot concentrated in the south due to Fremax Controil in Fras-le, but we have in Extrema, the center of the country, to be close to the market. We have, for example, to have an idea of space, over 39,000 square meters of warehouse to store a product with 47,000 pallet positions. This makes us a huge player. We read about the American cases in logistics and distribution cases. We are a huge case of success made in Brazil, covering all of our market. A strong sales force. What I'm showing you, all of the product families are extremely relevant in the market. Some family, like lining, brake lining, over 50%, truck lining, brake pads, over 30%, but we have products with a lot of path to grow. It's the case of shock absorbers, less than 20%, discs.
We have a brilliant market, a lot of space to grow still, and I'm sure that with this sales force, with this market coverage, with the product portfolio, with the spaces we are occupying in all territories in Brazil, we're gonna grow with the other brands. Paulo, it's great to know that we are evolving our presence. You talked about 75,000 workshops, and that's a lot of people that we need to communicate with, and I want to give back the question to Montagnole. 75,000 guys in the front line, and we need to get... relate to these people, another 30,000 guys to sell to these. When we think, we talk about mechanic, but we use an expression, business agents that are acting in the value chain, because the purchaser, the buyers, the sellers, and the mechanics, brand is very important.
It's a critical success factor. The presence of the part. A piece, a spare part is a pizza. Nobody's willing, the consumer's not willing to leave his car stopped for a week. Luca's not gonna leave his car stopped one week to be fixed. I've left a car one week, stopped, waiting for a spare part. I bet you all have a story like this, but we don't accept this. It's like a pizza. It must be delivered in 45 minutes. Well, we need stock, a chain that provides the best service at the best cost. This we call ecosystem. This ecosystem, if it works well, you provide good experiences, be it for the end consumer, or the mechanic, or the salesperson, right? Mechanic, he talked about 12,000 SKUs, the items, those items, to cover a fleet of 45 million. Let's round it out.
One auto part is small, 200,000 SKUs. How do you find the correct SKU, your vehicle model? That was a pain. But I say it was because I want to show you a video where we will uncover a bit of a solution. It started like an electronic catalog, but I will talk more about it because the topic is how to be closer, right? Let's watch it. Yes.
Auto Experts.
Auto Experts. Welcome to the service platform that accelerates your businesses. A true ally of distributors, retailers, wholesalers, mechanics, and workshops to facilitate your day-to-day in an intuitive, easy way. Very easy to navigate. Several brands available in one place to serve those that need with different functionalities and services to make more agile. Search by license plate. You put your license plate, you find out all the parts available for it. Simple like this. If you want, you can use a comparing filter, comparing products, solving doubts quickly. Where to find, develop so you gain time, find the parts that you need in the closest point of sales to where you are. The platform also brings instructive videos with tips, information, and relevant content for those that sell and use. PDF catalogs. This functionality was made so nobody's left out.
You have the catalogs you want in PDF, checking the parts you want, even offline. And a lot more services and functionalities are coming. Don't miss. Access autoexperts.parts and more. Well, Auto Experts was born to solve a pain, to find the right part. What's the next step in a mechanic's journey? Where do I find this part? Which price is the part? How do I purchase the part? How do I do a better diagnostic? When we look at the ecosystem, we see that up to now, we did a management of it, but without several tools that were brought by the digital universe. When we face the today and tomorrow...... It's not going to be only digital, it's not going to be only the brick-and-mortar world.
From now on, we're gonna dive into the Phygital world, and Auto Experts is exactly the platform that makes this connection with all those agents to provide the best service. We're starting a journey today with a digital, robust catalog. You can find 4,000 points of sales. We just said we have 75,000 shops, so let's say 14,000-15,000 auto parts. We're present in 4,000. No, it's a journey. We still have a path to a long path to go, but we know the path, and this is what we want to show you. Sérgio, I usually say that it's hard to operate in auto parts and not consider a brand. You have an auto parts and not have a brand. The mechanic is gonna ask for it. I saw here 36 million access. Well, I was doing the math.
It's almost 1,000 access per hour and converts in parts. It sells? Sells. More than selling, it gets closer to be present. Of course, the brands are relevant, and we're gonna sell product, but if you have, if you're present in the success journey of the mechanic, this will generate a value that will be constant. With the parts we have today, the brands we have today, it's also for the future. We can grow a lot.
First of all, I'd like to thank you. We can share a little bit more about the commercial side of how we operate. I think we have to go to the short questions. If you have more, there's a QR code. We'll put it on the screen, and after that, we can answer more questions regarding the topic. Very well. Before I go back to Jessica, I would like to leave things nice and ready for Anderson. If you could put a return on the screen, that'd be really great, so we can make the presentation more dynamic. Thank you, Paulo, Sérgio. We'd like to thank Paulo for his participation, Sérgio as well, and Emerson for mediating in our first panel this afternoon. I'd also like to... At any point in time, and the QR code on the screen, and send your question.
In a 70-year history, Fras-le has a solid reputation, recognized throughout the market, leading the auto parts market in friction material. In the brand systems, Randoncorp has almost 75 years of history. Now I'd like to invite the CEO of Frasle Mobility, Anderson Pontalti, to talk about this synergy and the strength in working together.
Good afternoon, everyone. We apologize for some of the technical difficulties, but it's not gonna remove the essence of our event. Thank you, Joinville, this beautiful, exciting city that received us, all our friends, investors, and colleagues, professor, the people from investor relations, everyone who's doing this so kindly. I want to talk a little bit about the past and creating value.
As Sérgio said, making what's already good, very good, but also the confidence that we want to go forward, respecting all the stakeholders of Fras-le, whether it be people, environment, investors, shareholders, employees. That's my main role here. And so, I want to start by talking about what we've just finished talking about, where our ecosystem is supported by a complete solution, which is present in Fras-le Mobility. That Fras-le Mobility is in a place of arrival, not a starting point. So we have a more complete solution than any other aftermarket player in Brazil. The end of card, I'm sure we can navigate other seas with the supply products.... As Paulo mentioned, we have a presence in 18 of the largest distributors in Brazil. We're almost always the most relevant between first and third place, so we have a significant capillarity and market access.
But this isn't just true in Brazil, this is true in Argentina. Fras-le is the market leader in many product lines in Argentina, especially the friction lines and the braking lines, as well as engines. And there's huge space for growth. This leadership in Brazil and this leadership which we have in Argentina, it is a situation where we're learning what works here and we're taking it to other geographies. We've seen this in the Pan-American region, where we have a presence in Colombia and neighboring regions. After we purchased Juratek, we started this journey in Europe, and we're starting this journey in North America as well. Our business and everything we do, everything we think about on a daily basis, has to have this word included. We can't not work with synergy. We want to create value.
At the end of the day, we need to do more with less. So when we look at synergies, this is part of the Fras-le DNA and Randoncorp. We're not looking at the market. We go after what's lacking, and we want something to work better. We knocked on the doors of Fremax, Armetal, Juratek, because we understood that they wanted a value. They wanted to create value, respecting the singularity and the strength of each of these companies which joined us. We wanna understand that as buyers, we're not perfect, but the sum of the good qualities of all the purchased companies places closer to what we desire, what we have in mind. We always say that one plus one has to equal three. In synergy, in terms of projects, it's constant. We have to always be learning.
We have to be challenging between units, geographies, teams, so that we can have a more competitive and appropriate solution. When we look at our brands, Fras-le has a global presence. And so over four decades ago, we conquered the world when it comes to brake linings, and the Fras-le brand is very recognized because of the value it delivers. It's a high-performance product. It's a, a product with zero recall, and in the history of... It's very safe, and I'm not talking about just Brazil, but the world. And so it's hard to imagine this. In Fremax, we had Controil, but then with Fremax, we took an extra positive leap in the perception of a strong brand, a premium brand, a light line with a very strong positioning. It's larger than Fras-le. Fremax has a DNA with very quick releases.
Controil also brought several interesting things. Fras-le, in terms of working with hydraulic pieces, is much more complicated, warranties, assistance, mechanical knowledge, et cetera. And so this is one of the best acquisitions of a publicly traded company in our segment, to add the synergies here. And so we have very unique expertise, where we have knowledge, where we have a flexibility that can act more quickly in periods of higher demand and affect results. And with this, you know that there are other markets that we can affect competitively. Giratec also came with new movements that we promised shareholders, with a stronger step towards the foreign market. It's very successful, delivering more than promised.
We have an objective of collecting GBP 50 million in a year, but we closed last meeting with the capture of GBP 10 million in 5 years, already captured in the first work of year working in synergy. Also, we should be here with Fras-le, but this shows us that we want to grow, and this is Fras-le Mobility. This is what we're, where we're sure that there's space to grow. We continue knocking on the door of co-companies that we believe contribute value to this brand. We continue with our, our agenda, very active in this regard. The results of all this, we see each other as a company with sourcing expertise, logistic expertise, whether inbound or outbound, which is fundamental to what Sérgio and Paulo mentioned. We have the right part at the right place.
We want to have the best offer, whether it's manufactured or outsourced, but we want to be the first option for all our consumers. That's our mantra is to be the consumer's first choice. We have a long path ahead of us. There's a lot that still needs to be built. It gives us a sense that we're in the right direction. I moved a little quicker here. Very proud of being part of Randoncorp. They're not just a shareholder, they are our main shareholder with lots of experience, 74 years of experience in the automotive market, especially the Brazilian market. This allows us to have safety and robustness with brilliant minds to help us calibrate our strategic plans. There are many people helping us, correcting us, and exhorting us, giving us tips.
I think it maximizes all the synergies which are behind the scenes, not just the value chain, but all the others, are being consolidated with a level of professional governance that's at the highest level. This happens when we join our efforts. Another thing that's really positive for us is our history of results. It's fantastic, both for Fras-le Mobility and Randon. We have technologies and products. We have Casaril, who reports to Sérgio, and many people separate from our units. The issue of technology is so that we don't get distracted on the day-to-day with the light and demand, but that we can think and extrapolate, looking to the future. And this has brought a lot of results, and you're familiar with some of them. Like Compos 91, which is fruit of being able to share knowledge and using technology in a joint manner.
Solid governance and policies, as already mentioned. We share our best practices, and we learn a lot together. We share open innovation ecosystem. We have our Randon Venture, we have Conexo, we have all the service area, the entire service area, which has various characteristics which will contribute to an ecosystem. We have an area of financial services for Randon, who is playing a part. So we think that all these products and services can be shared. We have cross-selling, which you don't need to mention. Paulo has not only Fras-le, but also other auto parts. Also, leverage. We wouldn't have the same competitiveness in various commodities if we weren't with Randon. And obviously, we have opportunities to have the best funding conditions regarding of the location or the product, when we seek a financial product. And a bit of our history, just very quickly.
I wanna say that we're restless. We're never stopped. We've already had Fras-le Mobility this year, we have Gera Tech, we've had a Compos, and we continue, and next year there'll be more things to share. So we look at revenue growth, that's very promising. We have only 10 months so far here, with the adherence to the guidance, which was mentioned a little bit ago, but behind all this, we create demand. This is something that is growing the ROI as well. We quadrupled our EBITDA in four years, and we are—we have adequate levels of debt, of debt. We, I acquired companies with low assets for a reason. We're less capital intensive. And so we don't want to compromise our working capital in any way, allowing value creation to be frontline. We generate cash, but we don't consume the cash.
This has to do with our strategic movement to improve performance in all units, growing with market share. We have some of our executive directors here. The secret to all this is the people. We have an experienced team. It was set up before the journey started. It's like the chicken and the egg. We set up a team, and we have a team that can double the size of the company, and they're already in-house. The people that are here have... And there are several that are not here, with the same talent or energy, and this gives us confidence.... That we can take the company to the BRL 8 billion level, starting from the BRL 4 billion where we are at now.
We're gonna continue talking about economies to scale, and acquisitions, and organic growth. It's. We don't do this at any price. There's a way to do it.
There's a right way to do it. This is an agenda that we share with Anderson. ESG is a significant directive for the company. We shared our goals in 2021 to meet by 2025, and we want to reduce greenhouse gases by 40% by 2030, and zero explosion in landfill by 2025. We're also committed to doubling the amount of females in leadership role and reduce serious accidents within our factories. When it comes to businesses, we have the obsession to always produce revenue with innovation, new things that can add value to the customer and improve the conditions for our company. When we look at the planet, we have to look at this tripod. We have to look at... Having a more effective carbon footprint, whether it be the selection of the raw material, the manufacturing process, the disposal.
Also, looking at renewable energy and a circular economy. Fras-le has an initiative in production with technology products that are completely different. We have this new part used for rail equipment. Just this technology, changing the raw material in the manufacturing, using less energy to consolidate the product. Just with this item, we reduced our carbon footprint for the item by 43%. If we produce 10,000 brake shoes with this technology, we produce between 15 and 20 normally, this would represent 46,000 kilos reduction in carbon dioxide. With the equivalent of 46 automobiles. It's a small solution calculated within our company.
When we look at reverse logistics, today, we are collecting around 50 tons per week of brake discs in Santa Catarina, Rio Grande do Sul, Paraná, and starting at the border of São Paulo, bringing it back to our soil, and bringing the material which doesn't require, extraction, mineral extraction. We can reverse this in a circular economy, and it's already a significant part of our inputs, and we're just bringing it back and bringing in new part, and making easier to make new parts. What is relevant and is a source of pride is the green boiler, and this will reduce emission of carbon and greenhouse gases by Fras-le by 60%. Just with this project, we're also gonna eliminate natural gas used and substitute it with biomass. Just carbon for biomass, we're doing it 2%, and for us, it's our key emission point.
This contributes for 50% the goal, or 20% of carbon emissions of greenhouse gases. And this project, we cover... We're investing BRL 17 million to be concluded by the end of next year, in operation 2025. People, by far, the most important. We're working diversity and inclusion, separate three topics: diversity, inclusion, safety, and occupational safety, community. Talking about female career, that is linked to our goal of having twice the number of women. We have clear structured goals in the company, over 200, 250 women in this program today, which is leadership in motion for those that are already a leader. And their journey is for women that are not in leadership, in position, they can understand their calling, their profile, and for each area, this profile makes more sense. Like we have career mentoring for all the women of the organization...
We guarantee that they have the conditions to navigate as equal as possible. This industry is hard. I'm a mechanical engineer. I graduated with 20 students. We had 1 woman when we did the entry test. We have this need in Brazil. With time, it's a journey. As the base qualifies and we incorporate more women in the corporation, we improve at equal opportunity. In university we have 4 groups of affinity. It's a group that we understand more, and make this so everybody can enter happy, in a respectful way, because it brings a lot. When we look at safety, the work is distant, our goal. The last 2 years, we have invested strongly in culture. Culture starts by sharing information.
We have the main risks of the organization are identified and shared among the different people in the industrial areas, and we seek the best solution, the quickest solution, to lower the risk level, that line, that operation. This work is huge. 74 years at 32 productive sites, there's a lot of knowledge, but also many things that need an effort and work every day. Our community arm, I want to bring this picture, the individual. We extended Florescer in several units. Fras-le is the second. We only have Fras-le, Caxias do Sul, and Fremax also has pedagogical support of Florescer that was made by Raul Randon 25 years ago. With this, more children can... You have good practices, removing them from vulnerable situations that we see a lot in our country. Governance, finally, when I talk about governance, we have to talk about product.
We put a lot of product inside. Cesario, the head of engineering, is gonna talk with you. We have invested and grown a lot. The investment in R&D, we believe in organic growth, not only inorganic, and this is a belief. Always creating value, always seeking a better way to do things, an alternative to get far from the competition. This is only done through innovation, serious innovation. Without committing the short term, not affecting the long term with the short term. This terminates it. When we look at governance, our main shareholders, this makes us very proud. We know that our practices in the CVM 586 have a positive adherence. 2023, our indicator is 80.4. Assessment we did above the minimum of 78% for a new market.
This shows the governance level that the company has with being traded since... It's under our radar. We believe the investors and analysts can trust in what we report always. About governance, we've talked about Votorantim. It represents what we represent. It's important to have a brand represent, represent Frasle Mobility in all the ecosystems. We have Sunrise project. We're migrating SAP of all of our units that have SAP for cloud, leaving servers, conventional servers, going to cloud solution, SAP S/4 HANA. This is happening in the turn of the year. The project is going well. It's not a new system implementation. It brings transparency, governance, robust, and re-make it, it makes more robust. An important topic when we look at all the evolutions, risk, corporate risk management, well structured. We have several risks we identified.
For all of them, we have actions, projects, roadmaps to mitigate and eliminate them or control them. More important, we call safe connections, has to do with cybersecurity. It's our main risk. We declared internally, this is what we have done, a huge amount of investment and actions. We created a safety of information department with what I mentioned in 2018, we declared we saw as a risk, cybersecurity. As of May 2022, we created a three-year roadmap where we want to evolve the maturity of cybersecurity in the company. And high levels, in good part of our investments are geared towards here. We have a dedicated team, and our level of governance allows us to say that we're quite satisfied with the obtained results.
We're protected, but the threats are always knocking at our door, more modern, more sophisticated hackers, and we are learning, constantly monitoring and evolving. This is something very serious in the company. We know how many of our competitors, players, and market equivalent have suffered. And we, in some cases, have gotten open doors to talk with the ones that suffered attacks to improve our process and our system to make it more robust. That's what I had, guys. I hope I didn't take you, delay you from the coffee break. We wanna talk about the past, the future. We have more than what we did in the past, and not at any price. We must deliver, respecting what we must respect. Thank you, everyone. Have a great event! Thank you so much, Anderson. In this moment, we have a brief break in our program.
I invite you, those that are watching us online, please stay with us. We will be back.... The next panel gives the vision of support for organic growth for Fras-le Mobility in its strategy. Let's visualize the important avenues for growth in the business without considering our acquisition process. Mediating this process will count on Emerson, together with Guilherme Adami, business director for Light Line, and Marcelo Tonon of Nakata. Let's start the panel asking a question for Guilherme Adami. Guilherme, as director of Light Line and Friction Materials, has also. We know that Fras-le, basically, approximately 50% of Fras-le is composed of friction material. We have consolidated this inside the company, market share that's important in Brazil and Latin American markets like Argentina. How do you expand a line that is so consolidated inside the company?
Nice. Good afternoon to you all. It's a pleasure to see the friends from the last cycles, tell you about the news, novelties. As Jessica said, we're very consolidated in friction lines. I'll try to divide the answer, talking a bit about light line friction and friction in the heavy line. Two segments that have... Despite having friction material, the market is very distinct. I will divide the answer in two parts. Start answering a bit about light line. We have a leadership position in Brazil, well consolidated, with expressive market share, as you can see in the screen. This doesn't stop us from continuing to have a path of growth, basically divided into big avenues. Before we seek the avenues, we must define what we are building. We have this concern in heavy and light. Friction is very competitive segment.
It's a segment that in the lines of Fras-le, we have granular competition with a higher number of players. Even if we want to maintain what we have, we have to do a lot. We do a strategy. We don't design objectives to walk sideways, we wanna walk forwards. Looking at the light lines, talking specifically about friction and light line, trying to translate, leaving our day-to-day, translating for those that are not in tune to our market. We're talking about brake pads that are a pair with Fremax. Emerson's gonna talk a bit. It's a set, disc, and pad that stops the car. Some vehicles work with shoes, especially in the rear brakes, drum brakes, so talking about pads and shoes. Lucas didn't arrive here if he didn't have a pad or a shoe. Other components that we like to talk about, it goes through the portfolio management.
Those that follow the market, the market, the light line was held back with the pandemic, less launches. Now that they were held back, they're accelerated. New cars are coming in this last cycle. Next few years, all manufacturers are making choices, working their niches, each one of their strategy. This will continue to bring a distinct range of vehicles. We will have launches accelerated due to hybrid and electric vehicles, new motors, new configurations of vehicles. Management of portfolio in light line that looks into Nakata, Fremax, Controil, it's a differential. We do this very well. It seems basic, it seems trivial, but it's not. Each vehicle in a same year can have one or two different pads, and manage the portfolio correctly, granularly. It's very important to keep the growth of our operation.
We have a very robust process that I can assure you is a model in Brazil and in the Americas. Guarantees a coverage of portfolio that's extremely robust. Today, our level of launches is the level of Chinese companies. Chinese today, in terms of portfolios, are the ones that do the most good management, and Fras-le in heavies and commercial line was able to reach this level of fluidity, quickness, and speed in development. We are the last cycles of five, six new launches. We launch products to the market. This is new money, the money that we like the most, to arrives first, pressifies first, does pricing first and enjoys the first path. This has been a success. The market shares is of 2022. It's outdated. I can't let you know because the year's not ended, but we've growth on top of our leadership.
This confirms what I'm telling you. We grew, grew well this year. We're gonna bring the new number, and it goes through portfolio management. The new portfolio created in the last three years, I can measure, especially in the light line, in a physical volume that we sell at Fras-le. Friction is 15% of our revenue. We want to keep this pace, a strong pace, a pace that makes us proud. So portfolio management is a way of growth. The second way of growth... Let me skip one in the middle, then I go back to it. Due to several factors and choices, we slowed down on the assembly, the manufacturer's market, and we're coming back stronger. We evolved our factory, evolved the dynamics of doing business with a segment that's completely different than aftermarket, as we always highlight here. We learned how to do business differently.
We're better prepared in term of product and factory, in terms of concept and model, mental model, how to operate the market. We were nominated recently by a manufacturer, automobile manufacturer in Brazil, that made the main one. Last year, we were nominated, mentioned an important project with an important manufacturer. The one that we won this year, one of the main platforms of vehicles in Brazil. This project alone gives us 7% market share. We always talk about Aftermarket. It's always our main path of growth, but we also understand that Aftermarket must drink of the reputation that the manufacturer gives us. The state-of-the-art technology in terms of product and process, we will continue to invest in this path. When we look at the Aftermarket level, they are leveraged a lot more in the commercial line.
In commercial line, you will see it's almost 90% of market share in Brazil. We don't bring this to the light line. It's an avenue to explore, and the moment to explore is very opportune. This is what I wanna let you know, those at home. We have several factors worldwide, global level, that make Fras-le a candidate to enjoy this avenue. We have conflicts in the world. We have a trend of nearshoring. Due to the pandemic and conflicts and logistic crisis we've gone through, this makes local players in the original market change a bit their strategy. The strategy was more global. That was for the mainstream parallel market, ended up benefiting.
We saw a change in this, and Fras-le in a solidified way, also, with the weakening of our competitors, global competitors, we have a very promising avenue ahead of us that we're gonna explore in the next cycles. It's part of our strategic planning. A second path of growth that's very relevant for us, the light, friction light, is very dependent on Brazil, Brazilian aftermarket currently, and seeing the complexity of building a portfolio in light. When we're gonna build a line of 60, 70 SKUs, we can cover a good part of fleet. When we are gonna advance in Latin American market and global markets, we're talking about a 1,000, 1,500 SKUs, and we created this know-how also. We created a factory of launches. Today, the light line can launch a part number 30 days after the car leaves the manufacturing.
Thirty days after the vehicle is running in the streets, you can already put parts. If we had, in the market, a fallacy, if I can say that, that change comes after 2 or 3 years, it's not like this. Projects are not perfect. We have potholes in the road. We have a lot of potholes. We have seen the need of change before the cycle. Many Focuses are out there throughout Brazil. We developed this know-how. We're very fast to launch. We lost 1,500 references in 2 years for Latin America. It's in our backyard that we explored. The heavy line we didn't explore. It was a weakness we had in the white line, we must admit. We're exploring this. We grew 115% in one year. 115% in one year is 1% of the total market.
So imagine now with the portfolio that's created, not only the light line, friction, racing shoes and others. Anderson, Paulo, Sérgio, everybody's bringing to you. It retro feeds the system. Cross-selling and aftermarket is very powerful. We're prepared to attack, and attack is preparing strongly. Controil, also, the synergy has opened many avenues for us in light line, and not only in the point of view of the business, but competitiveness. We have factory capacity in the light line. We don't have to do a lot for investment. We have a continuous improvement culture in our operations. We've gained with low CapEx, very low CapEx, around 5% a year.
This within the light line is very competitive, it's very combative, and that's how we're gonna attack it with launch, with portfolio, with agility, a competitive factory, a flexible factory. We have three operations, one in Uruguay, one in Caxias, in our headquarters, and one in Sorocaba, and this footprint allows us to attack and keep growing. Paulo, answer for the light line. When it's the commercial line, that's not my focus. Representing Alfredo, our colleague, who coordinates and gives direction to the commercial line, but he's in China. But we have a lot of synergy. We have a lot we can talk about our other businesses, and the commercial line is an even stronger position. It's a leader in Brazil. It's a leader in OEM, it's a leader in aftermarket with significant percentages.
Already has penetration in Latin America that's very significant, and a participation of 45% of market share in the United States. We can look at these numbers along with what just says, and says, where does it grow? There's room to grow. We have a lot of room to grow, and I'm gonna divide my answer into two. It's worth noting that the commercial line, it divides into two types of brakes, disc brakes and drum brakes. Each has its own particularity and share within these technologies. Brazil, Latin America, is a market that lives off of drum brakes. We have this leadership position, and we're gonna continue exploring this. This has room to grow from 15%-30%. That's what we're-- our goal is over the next 5 years of strategic planning. We also have Europe, which we can explore, especially when it comes to trucks.
We've already migrated to disc brakes. There are still trailers and carriages which use lining brakes, and so we work in this market share, which is significant, but we don't have. We have the market for India and China. We have a growth of Asian fleet and all Latin America that we don't explore. We're recently in Colombia, and it's impressive, the number of Chinese vehicles that are part of the top 10 of commercial vehicles, something that we didn't see 5 years ago with a lot of American and European models. This is a full line. It is an avenue for us. We're in India and China with factory and a portfolio. I think the main thing for us to not take more of your time, the main driver is the migration of technology.
We're number one player when it comes to drum solutions or lining solutions, and we want the same relevance for this relevance with the ADB or disc brakes. And for the brake pads. Brake pads, we have two major investments this year and two automated lines. It's very important for us to do this transition for technology. These were the biggest investments in recent cycles. We have two automated lines, with the idea of having the same level of competitiveness when it comes to linings. No one produces brake lining with the competitiveness and productivity that Fras-le has, and the same expertise is what we wanna create for the commercial line. The equipment arrived. We're gonna install it in the U.S. It's already installed, actually. It's operating. It started operating at the end of this year, and there are projects for that plant in Alabama.
And we bought a second line, which is arriving in mid-next year and coming to Brazil. We're preparing the factory for this migration. We're already an ADB player in heavy pads, but we want to play big time like we do in linings. There's a lot of projects in the pipeline, and my colleague is gonna talk about that later. We have a pipeline in ADB. It's very strong. The pipeline is growing every year, and Fras-le has been standing out, being a very relevant player in ADB, and I can affirm to you that we're gonna be successful in this transition, and a good part of this success will go through this pathway. We were already preparing this before with this equipment. We're in the main centers today, main production centers for auto parts throughout the world.
We have a factory in India, which is focused on commercial, another in China, focused on commercial. We have a factory in Brazil. We have a factory in Alabama. Our footprint. To do this is ready. We have the formulations, we have technologies, and we have capacity. We mentioned this last year, talking about linings. With zero CapEx, we increased 15%, and we can increase our capacity a bit more. We lived this for some period during the pandemic, living through a restriction and heavy lines, and we resolved this with zero CapEx or minimal CapEx. Thank you very much. I have to ask a question of Marcelo Dunal. In shock absorbers, we grew a lot, not just in shock absorbers, but other lines, and I wanted to understand a little bit about the future. Does the growth continue? What are the opportunities in Nakata?
Good afternoon. We're gonna grow a lot. Before I talk about shock absorbers, we have three years now that we've been part of the Fras-le, and Fras-le put Nakata in growth module. Nakata is entering this ecosystem with strategic investments where we made transformational movements that put us in a growth pathway. So how do we—why do we highlight shock absorbers? That's a key part for our growth. The shock absorber is a market of BRL 3 billion just in Brazil, and if we talk about just the replacement or spare parts, it's BRL 1.8 billion. Nakata inaugurated the factory two years ago, and once we switched the factory from Diadema to Extrema, we created a complex, and we gained productivity, competitiveness, and we placed shock absorbers in the growth module.
In the last two years, we're able to state that we're the second strongest player in the market, but we're... We have around 20% market share. In other words, with this strength, being part of this large group, we're going to challenge the leader, and we're gonna grow our market share. We're well-positioned. To be part of the group brought us access to raw materials that are much more competitive. We're working with more competitiveness and synergy for distribution, and beyond the capacity which we have in the factory, we have our co-manufacturers, which are companies that are approved to produce with our features and specifications. So beyond our capacity, our installed capacity, we have another 3-4 times that capacity to grow. We are already very well positioned in the main distributors.
There are various distributors who want to enter with our shock absorbers, because when we're part of Frasle Mobility, we are seen as a shock absorber for all types of vehicles, not just old cars. Shock absorbers are a journey which is transformational for Nakata, and it's transformational because shock absorbers in Diadema didn't provide results, but changing the shock absorbers to Extrema, we free up the other product lines, which had to subsidize the shock absorber just to generate cash. Now, the shock absorber performs well, and with this, we're growing very strongly when it comes to suspension and steering. Another point, 4.5 B. We're talking about 45 million parts per year. So the shock absorber generating cash grows and makes us be more competitive.
Our second line, where we have a broad portfolio of various products, close up the powerhouse and make a full solution and ecosystem of parts for the market. And not only that, we'd also like to highlight parts for motorcycles. This was always a marginal business with growth and where the pandemic showed us that the auto parts market for motorcycles kept us active during the pandemic, and Nakata ends up being the solution, offering powerhouse for our motorcycle parts. So we expanded our portfolio, and for the next several years, we have a roadmap to be completing a full line for motorcycles, even entering not just in suspension, steering for motorcycles, but the engine as well. So with the strength of the group and with these products, we have a pathway for growth. We have space for growth because we're the first or second.
We're not one contestant, such as it is with linings and pads. We'll be the second contestant in shock absorbers and other products. Yeah, CV joints, et cetera. Thank you. Fremax, those of you who are with us and had an opportunity to visit the factory, what did the situation show in terms of advantages for the company? There's the advantage of people circulating and knowing more of Fremax. We saw the bus we had to exchange out, and so Fremax didn't need to switch out again. Fremax suffered some pain of having limited capacity. The company had around 20% of market share, and we made a giant effort, invested around BRL 20 million. We went from 4 million to 4.8 million parts, which is our current capacity. We put in diesel generators to support additional demand.
It's energy that's not very good, it's unstable and it has various operational challenges, and it's very expensive. When we did this, we're talking about diesel around 3 BRL. Now it's more than 6-7 BRL. Ever since we bought it, we started the journey to get the environmental licenses for that expansion. To show you the pictures of where we're doing that is a source of great pride. You have no idea how many meetings we've had with Julio, who is our main person in Fremax in this field. We had a lot of meetings with the government agencies to get this permit. But at the end of next year or the beginning of 2025, we're gonna have a plant with 60 million additional capacity. Here is a photo which shows the lower left portion, where we'll have a substation.
We're already working to get this ready, and so we've mapped out for Fremax 1.2 million parts. We've mapped out for that unit, other businesses, around 4 million additional parts. And so at some point in time, we're gonna have to make a decision, thinking about a new plant. We even have a candidate for a new plant. We're discussing what state and what location. We've been checking out possibilities here in municipalities in São Paulo. We have our business case on hold, trying to add a lot of the opportunities that we see. We have a leadership position, but we can still do a lot more. As an investor relations manager, not as operations director, I say that we can grow at a single-digit rate, a large single-digit rate, without thinking about acquisitions. There's a lot of opportunity.
We have a lot of market where we can grow and continue to grow, robustness, quality business, quality margins. Now, I'm gonna share with you a question about the market abroad. Are there any opportunities there? How is Nakata in this? Nakata will be a global brand, but to be a global brand, we don't necessarily have to have manufacturing activities. We've already been successful, and we already created a powerhouse, and we launched Nakata brand products in Cartagena, where we have a warehouse. These parts don't go through Brazil. Nakata has co-manufacturers developed in various product categories with the capacity to develop manufacturing for any product. We have no barriers to entry other than know-how and technical knowledge of the product and process, to select the best partners and place these products.
For example, in six months, we put in a full line of motorcycle transmission parts in Colombia, in the Nakata brand. In Colombia, we have a market of 15 million motorcycles on the roads. We're already selling suspension and steering parts from Colombia as well as Argentina. We already have a powerhouse consolidated. We already sell several parts, and so we're just growing more leverage with our co-manufacturers. Give us an opportunity to scale the Nakata brand and the model globally. It's not our boldness. With Juratek, we have the possibility to start now to scale the Nakata brand based on our co-manufacturing, because this co-manufacturing base has this portfolio. We're just gonna adapt our features, and in the future, the U.S. market. So we can scale Nakata without having to think about investment in assets and manufacturing.
But using increasingly these co-manufacturers that we have approved, where we can develop to meet the needs of all these markets and all the powerhouses which we'll place in various locations. Great. We have a long pathway to travel. What about Controil? How about the market share advancement in the last several years? What are the opportunities in this business? I like to say that Controil was a, a second, B-line, second level B-line, and now it's market leader. Our problem there is capacity. I'm always looking at saying, we need, we need investment funds. We bought this in 2012. We started investing more in 2018. We increased our market participation. We grew more than 10 points. Today, we-- they're strong leaders in several segments. We advanced with our exports. We have support from the gains which we had on a daily basis.
The video behind us shows some of the improvements that we did in our factories, putting our house in order and being very competitive. It's a difficult product. It's a hydraulic product, so it has a demand level and a care level that's very significant. Also, it's a braking system, but it goes away from the mechanical contact. It has to be an actuator. It doesn't leak. It's more complex to do a hydraulic product than to do a hard product. And we've had a great journey, and there's a lot of potential. We sell almost nothing to exports. We have our OEMs, we have space to grow in the domestic market. So Controil had around 90-100 million in revenue, now more than 200 million, and we dream of 300, and we think that may be as too small of a dream.
There's a lot of space to grow. And all this shows that we're a company that has organic capacity for growth, going from a follower to a leader. Thank you very much. Let me finalize with the last question. Before you... how you have the composite materials, then, talk about composites. Tell us about Compos. Tell us about this journey.
A bit of history for those that are joining now. This, as a source of research, started at Fras-le more or less five or six years ago, and the business is in being incubated at Fras-le. We effectively started to transform this study, this platform of R&D at the end of 2021. This will complete two years and a half now. Last meeting, I came to tell that we started to supply support for mud stop for Randon Implementos, for trailers. I want to tell you a story. Some of you were at the show and you were able to see the components right after in a very fast, very fast, very quick time. We were able to prospect this business, close this business, to put the factory there. It was 6 months. OEM segment for automotive, it's very singular.
Not any competitor, not any partner, not any product we can do this. We're nominated by IVECO. We can say we have an open partnership with IVECO in this sense. We're supplying all the support for mud stops for their heavy trucks, and we deliver several benefits. The weight reduction, that's significant. The, a lower number of part number, that's the composite, the form freedom we have to create. We put three components in one, supporting the mud stop and the light support and the license plate support. The journey was fast, and the composite technology comes with the process technology and a bit of synergies that Anderson said. Part of Randoncorp brings benefit beyond the synergy of back office and business interaction, synergy in product and service.
The technology, the development of the line was done in-house by Fras-le team in partnership with Auttom, one of the Randoncorp companies specialize in automation, process development, machines and development. The machine, it's not a factory yet. I was joking. Compos is a small startup incubated in Fras-le. Today, it's a production line that in the future will become a unit, a BU, with relevance, so we can speak about it, was created by us. It's a disruptive process, a process that we're gonna see throughout the world to find something similar to what we did. It's been done by our people. This fast cycle gave us, in six months of supply-... the honor of being nominated as the Supplier of the Year. Supplier of the Year in all categories of supplier awards they have there.
Two awards, Supplier of the Year overall, and also supplier awarded in the technology and innovation. This reminds me to a second project, the second nomination we received, for a second solution, together with IVECO, with heavy vehicles that has pneumatic suspension. We created a business. We're preparing the line. Very nice. It will use the line that we already have, so we're going to use better the assets we have. It's gonna be the first composite export. It's 100% Brazil, 40% with Argentina. Due to them, we deliver in Brazil. We start to put composite outside of the domestic market, and I want to draw your attention beyond the material technology, and we're gonna talk more about this, the tooling, prototyping, the issue of automation of the factory is also by Fras-le, by Fras-le core technology. Many things are to come.
We were in an important meeting with other customers. We have a pipeline that's packed. We're not gonna promise here, but every manufacturer has their speed, their need, has their pain. We accelerated here because we had other pains to solve, but we have a packed pipeline. Many hours of engineering have been scheduled already. We have contact with 100% of the heavy vehicle manufacturer in Brazil, talking about composite materials. What's nice about composite, and I said I was gonna mention this, what we're doing in terms of support, like we say, is the first step of composite. Composite is gonna be a lot bigger than that. A lot of new products are being habilitated for 2024 through our research institute, as Ari was going to mention, but new things are coming for the next cycles. Perfect. Thank you.
It's clear that even in a leadership position, Fras-le has Fras-le Mobility, there's a lot to grow. Thank you for your participation. Thank you. I invite now Alexandre Casaril, our engineering director, to present the roots of mobility. Hello, good afternoon, guys. How are you? Basic training. Nice. Let's go. I came here to basically for one message. Fras-le Mobility invests in research and development for innovation, generating competitive differential for our products. This is one of the main leverages to generate an expansion of the business and profitability in the business. Innovation is one of the main pillars of our strategy, business strategy. Half our strategic process, make mobility, not are anchored in research and development. This is the basically the message that I came to bring. I try to illustrate now with some historic facts. This is not done overnight.
A few cases, a few of them, not many. The next few minutes, we're gonna talk a bit about this. Bringing a bit of history of our route. I'm gonna bring five historic milestones. In 1995, we launched the first asbestos-free product. It was a big discussion in this industry. They were starting some demand. This habilitated us in the next ten years to create a position of leadership in the OEM Brazilian market that we sustain until today. We have 85%-95% market share for brake pads, brake linings. It started in the 1990s and consolidated until mid-2000s. It is still seen due to this pioneerism in the Brazilian market. In 2004, we started a recycling journey, recyclability journey to reduce materials, to raise competitiveness.
We have 45% market share for trucks, and due to the competitiveness that this project brought, we guaranteed the recycling of material from losses from the friction line. We stopped sending material to landfill in 2008, about the year before the ESG journey. We have this in other units, but we started this in 2008. This is very nice. I had a participation, a small participation in this project in the U.S. in 2005. NHTSA, the regulating agency for stopping distances, reduced by 34-30% the stock for Class 8 tractors. At that moment, this would be in effect 2009, many of the market players wanted to do a technological change.
The market of drum brakes, which is our strength and our partner, Meritor, there was a movement to change to disc brakes at that moment. We invested in research and development together with our partner, and we offered a solution that met the standards. It's our bet against a market trend, and we have currently, for drum brakes in tractors, over 60% market share due to this. A bet that gives us return until now. 2022, we were bold. We dared to do something that I assure to you, if somebody does in the world, it's not very explicit or meaningful way because it's not widely known. To do a brake, a shoe brake with that phenolic, Anderson mentioned, a meaningful impact in the reduction of emissions of greenhouse gases from cradle to the grave.
But in the company, the reduction of the emission of greenhouse gases in the productive process, the reduction is over 80% in our industry. Now, in 2023, Guilherme just mentioned a bit about Compos. We are the first product that... The first product of composite material with structural function for commercial vehicles with OEM nomination. You had the possibility to see at Fremax this morning. Max Coating paint, nano-structured paint, involves NiOne, and offers the potential performance several times. It's still competitive paint, water-based, with facility for the production line, for the healthy-health of the employees, and we're working to make this a business. We are in a journey of innovation. The company invests historically in innovation, research and development, for innovation to leverage the business. This comes from the belief, this is our tripod, what supports the process, the continuous process.
I would say the culture we have internally. We have a research center in Caxias do Sul City here, in person, over 100 people inside, focused in engineering, distributed in throughout the world, Joinville, Extrema, in the U.S., in Netherlands, China, India, connected to this research development in a continuous process of engineering. CTR, more than a test field, a consolidated center for experimental engineering, for validation in vehicles, and a IHR. IHR, that consolidated as our big hub for scientific knowledge. We go to IHR to connect to several institutions, science and technology institutions, here in Brazil and abroad. As I said, we have people in Fraunhofer, Germany. They were in Canada last week. Through IHR, a big hub of connection, science and technology, not just Brazil, but outside of Brazil also. Now I'm going to talk about a few cases. Research development for innovation. Traditional and disruptive.
I'm gonna bring a case of traditional, a battle that we won against the disc brake, that we had against the disc brake. Now we want to have a leadership position in this segment also. We have a strong, robust, competitive position of technology and financial competitiveness in brake lining. We're working to be one of the major players with technology, competitiveness, presence, also in disc brakes. The two technologies for heavy vehicles, the drum disc and the disc brake. The disc brake and the drum brake. We're working to be a relevant player, maybe a leader, in this segment also. So we're working in this main axis, U.S., China, and Europe. Europe is very much consolidated. China is changing the technology from drum to disc, U.S. also.
We—due to several factors, it's not the legislation specifically in the US, but many other factors, the relationship of manufacturers, many things are making that market change to disc brakes. We enjoy another legislation change here. In 2015, they started the larger legislation, a restriction of copper. It's essential for disc brakes.... We made a bet. It was a gradual restriction.
We made a bet, since we had a weak position at that technological moment in market also, go to the last stage of the technology, we would be less competitive in the beginning of the journey versus our competitors, but we would bet that at the end of it, in the end of 2025, in a stronger position, we would take the direct step, betting that the copper restriction would not only be in California, in the state of Washington, where it's at the legislation, but it would influence the entire American market and other markets also. Onto Latin America, especially China and Europe. And this is happening. We started this journey working materials and friction material. We did a technology journey that started in 2006. We've investing, testing, investment, research, test, investment, research, test. This is it, one of the dimensions.
The other is the manufacturing process. Since we didn't have in 2016, our position was weak. We needed a process that was competitive, that would put us in to be competitive in the market. There are processes that are available in the market, very high technology process, an automated process, which the competitors use, and we bet on the development, not a new technology, but using our expertise, lessons learned from other projects to reduce the amount of investment for the capacity. Even so, with variable cost, that was competitive compared to the market, and it's what we did. We arrive now in the beginning of the party, let's put it this way, where the market is moving. Legislation in California restricts the last stage 25.
It's a moment that everybody's making their moves, and we are in improvement process or already supplying for the main disc brake manufacturers of the U.S. The three systemic leaders, two of them, we have approved products, two products. Three products are being supplied, two with an SOP for next year. We're doing only one product currently. We already have, with the same OEM players. These are global players. We already have business open in Europe and China the same way. We-- They're still challenging us, and we believe that it's feasible to add. Since the beginning of the journey, the business, our first approved product was 2021. Between 2021 and 2027, we're going to add $50 million of new business only in this brake. Now, we're around $7 million already added in the business. We want to get to $20 million in a few months.
We have a journey of getting to 50 million by 2027. That's what we're challenging ourselves, and we believe it's feasible. This is traditional composites. We innovate to disrupt. Composites is a good example, maybe the biggest example. I won't talk about the mega trends of the automotive, automotive industry. It's well known by everybody. I will, from this, recover the belief that it's consolidated, the definition that has consolidated. Automotive industry needs lightness and robustness. We need lightness and robustness because it means energy efficiency, it means reduction of emissions, it means increase in productivity, especially in transportation. When we talk about lightness, reducing the mass, we're talking about making up for electrification. Many things are not. When you remove the mass of the vehicle, that doesn't mean it emits less greenhouse per ton or trip done. We need this. The automotive industry is demanding this.
This is a big potential for composite materials. It's a big message that we need to leave about composite. The specific properties of these materials-
These are the new materials.
These are not new materials. I was talking during lunch with a gentleman. Composite materials are from the 1950s, last century. They were born with the war, evolved, consolidated in the 1990s-
Consolidated.
In the 2000 and the aerospace industry, in the years.
They consolidated, and they expanded their participation, and we think that this is a moment for composite material. We have bet and investigated and invested in research and development in real cases, and our feeling, our vision is that this is the right time. It's a pioneering journey, but the pioneers will have stronger positions in the future, and we'll have the benefit of entrepreneurship and technology. When I commented with Anderson, the next logical wave will have two more certifications with new technologies, new businesses. So we believe that this is a source of new business for Fras-le Mobility. This is the vision of future for this division. I also like to highlight the role of the technology hub and technological certification. Guy de Hermy illustrated our first case with the vehicle.
Line one, to finalize, NiOne case is one that you've had the opportunity to see this story. The story is very well told. The small message I wanted to give you is, NiOne came about after a challenge that there was regarding niobium oxide, and when this challenge was placed, we had an ability to answer it because of another project that we were working on for three or four years. The skills, the people, everything necessary to answer this challenge was placed because of another project. NiOne was born because of another project. This is where we aim at the post, but we also hit the owl, and we're happy when it arrives for us to hit.
So this is one of the major advantages of learning how to take advantage and manage innovation, taking advantage of these opportunities when they appear, when they happen, and we need to pay attention to this. Are we going to have a NiOne every year? I don't think so, but we can have others. That's the message that I have. Today, NiOne is escalating to several segments using nanomaterials, not just niobium oxide, but other things as well. That's the message I have for you. Thank you. Thank you. I want to remind you that you can interact at all times with us online. Just scan the QR code on the screen and send a question. We will have our Q&A panel.
At this time, I'd like to invite to return to the stage our President and CEO, Sérgio Carvalho, to talk about our future that was already designed. The future has already been mapped out. You can see on the screen that we believe that we have a future mapped out. We mentioned other opportunities, that we had a lot of clarity through our processes of where we wanted to go as a company in terms of ambition, in terms of numbers, five years from now. Strategy for us to arrive there is also clear. It's already been mapped out. There are things in our history turned by accident. They've happened because we're well executing a plan which we created ourselves. This view already exists, therefore, the title.
But just to redeem a bit of this last cycle, I think that Anderson already mentioned, and Emerson perhaps as well, we had 2,400 employees. Now we have 5,500 employees. We have nine distribution centers now. Friction material at the time was almost 100%. By—in 2017, it was about 90%, and today it's 48%. An expansion of our product portfolio with three iconic brands that are now five brands, and our market cap was BRL 1.2 billion, and now is BRL 4.2 billion. And there's still a long way to go.
When we look at the guidance that we provided you, I think it was in February of this year, we had net revenue of BRL 833 million in 2017, going to BRL 3.5-3.7 billion, and in these nine months, BRL 2.6 billion. We showed in the ten months, BRL 3.1 billion in ten months. So you can see how we'll wrap up the year in terms of EBITDA, at 15.3% EBITDA margin. We had a guidance a few months ago. We redid our guidance to a much higher performance than we had originally planned, and we're looking at around 21% during these nine months. Our guidance is around 18%-22%, so it's been exceptionally good. International market had an expectation of $130 million.
Our guidance was BRL 230-BRL 280, and the actual number was 209. In the 9 months, we wrap up the year closer to the top line of this guidance. In terms of investment, BRL 45 million in 2017 went to end at 140, that is our guidance, and by the end of October, we had BRL 74 billion, with an acceleration in the final quarter of the year. So great results, excellent growth. We've talked about everything that we've done. We've had problems like every company can have. We don't want to look just to the past, thinking that we know everything, and forget about the future. We live in an environment that changes very quickly. Competition is strong and consumer habits are changing, technology is changing.
If we don't maintain this ability to self-criticize and a desire to improve, that will be the beginning of the end. Therefore, we must pay attention to the future. When we look, starting at 30,000 feet of altitude, you can see, like you do on the screen, a traditional company, but it's a fast-growing company, a financially strong company with a diversified model within the Fras-le universe, with all the diversity of the product line and diversity in terms of geography and product and other types of diversity. A very innovative profile, a lot of commitment to ESG concepts, and valuing people and acting very quickly. We make decisions very quickly here. This is a very important part of our story. When we look at the future, we look at 30,000 feet of altitude, and we look at internationalization, wanting to increase international revenue.
Innovation and technology is a competitive advantage. We want growth with responsibility, controlling our debt levels. We don't want to go more quickly than we're able to. We are committed to decarbonization. We want to work with smart materials. I'm not sure if it's clear to you yet, but that's a core aspect with heavy investment. It'll be a major business unit with a lot of confidence. This investment was done and made and moving in the right direction. We're gonna start our journey. Not that we're gonna start to work with artificial intelligence, we already have done this for some time, but we're going to structure our initiatives surrounding artificial intelligence in a more robust manner. We think this is the time to consider, and we've done enough experiments in terms of management, in terms of industrial environment.
We're gonna start a more robust journey regarding the use of artificial intelligence. Flavia was one of the pioneers in the formulation of the use of artificial intelligence, and so there are various initiatives, specific initiatives, where we can work with a plan in this regard. You have a strategy. It's very clear. I think that's a strong point for our processes. We have a very clear vision. We have strategic planning that involves our ESG goals, but with strategic planning, we have a one-year operational plan and a view forward that for five years and ten years. And when we know exactly where we want to go, that's... We can achieve the objectives that we want. Some plans are more numerical and operational, specifically the one-year plan.
And then we have our strategic guidance, which reflects on the way we think, where the differential of technology is important, the focus on products for clients, our financial robustness, sustainability, and being a company where people want to work using these synergies, which has already been addressed by my colleagues. So the future is mapped, and we're gonna move forward with pioneering spirit and new technologies, developing smart materials. That will be a huge competitive difference, and will pay major dividends. Guilherme already listed the advances where all the OEMs in Brazil are working with us, and we're expanding now to U.S.-based OEMs, and in five years, this technology will be something that we'll, we'll look back on and see that we were right to celebrate. This is the beginning of the beginning of the beginning.
It's a new technology composed within other technologies, and we'll be developing new technologies to bring to the table. Emphasis on products, reducing carbon footprint, and the second point has to do with internationalization, expansion and the presence in relevant markets, internationalization, expansion of replacement, powerhouse, and the best offer with brands and products, as we already mentioned here. Our powerhouse and our diversification. We have a pipeline for M&A, a robust agenda in this regard. We have some projects that are more in a final phase. We have other projects that are in initial phase. We have more projects than we can manage, so to speak, but we have some opportunities here to talk about some of these projects.
But what I can tell you is that there's a lot of good things on the way, and until we sign on the dotted line, anything can happen. Until then, we don't have anything, but there's a lot of good things we're expecting in a not-too-distant future. Our main drivers are our know-how and access to markets. Within our know-how, you saw all our executives make great presentations, and I hope you have the same opinion, which I do. This is an extremely strong team where everyone spoke with knowledge, and this is one of our strong points. We know how to do things. We have manufacturing as a basis. We have make or buy process. We've learned a lot from Nakata in this process, technical competency, technologies, and our intellectual property, all those things which we protect.
And then on access, we have access to the market, the customers, the brands, the portfolio, sourcing, and people. All this, along with what Anderson said, which is synergy. Everything that we do, if there's not synergy, it won't make sense. Sometimes internally, we joke that our last name should be Synergy. It's sort of like an implicit mantra. Any project, if it doesn't have synergy, it won't bring about the right results. And we've been very happy at adding value, doing more with less. We need to change that one plus one is three to one plus one is four. We need to adjust our arithmetic, but there's a lot of good things coming. We operate globally, and the purpose of this slide is to show where we participate in the heavy and light line. Obviously, in Brazil, we always have participation in both segments.
In South America as well, we work in heavy and light. In North America, dominantly in the heavy line. Fremax exports a little to the U.S., yes, and Fras-le sends a little to Mexico, but it's very incipient. We can't consider a strong presence there. When we look at Europe, it's very similar. We have heavy and light, but the heavy is more predominant. Africa and Middle Asia, heavy. Asia Pacific, heavy. The main message is that North America, which is one of our targets, we only act in the heavy line, and we want to participate in this huge market, in the light line as well. Said, in other words, you see in this graph the size of the vehicle population between light and heavy that you have under these geographies. Brazil, Tom and Sérgio mentioned 45, 46 million vehicles in Brazil.
We went to the U.K., and 44, actually, is very giant fleet the size of Brazil. So we wanted to enter the U.K., but the U.S., with 279 million, Mexico with 35 million, almost the size of the Brazilian fleet as well. Canada with 28 million. This is one of the reasons why we think we have great opportunities for growth within Frasle Mobility. Disruptive look towards tomorrow. The company, which was focused on products, today is an automotive consumer ecosystem with smart and sustainable solutions, adding value to our customers with sustainability. Most important messages, which we mentioned today, you can see in this word cloud, we have a strategic planning process. We have delivery of results. We have expansion, significant expansion. We have solutions that are environmentally friendly.
We've created a powerhouse for replacement parts, iconic brands, technologies, disruptive technologies, and things that will make us equivalent to what you find in more developed economies. Our technology is cutting edge for them. It's cutting edge for them, and a lot of people have a hard time believing that. We receive a lot of international visitors leave with their mouths open. Anderson mentioned this, the team is fundamental. People are the center of everything. So once again, I want to repeat what I said earlier, the Frasle Mobility team is very strong. There are excellent leaders here, and there are several others who haven't had an opportunity today that are super strong teams with great talent, and this really gives us lots of certainty that we'll reach our objectives. The strategic pillars, not at thirty thousand feet, but a little closer to ground, is a global activity.
We have global activity, where 40% of our revenue is international, but we have opportunities abroad, and competition is healthy. You saw several people mention that there are several opportunities in the domestic market, and the opportunities abroad are at an even more significant scale. Our house of brands and all these iconic brands, some of them abroad, and those of you who participate with us for several years, remember how we spoke years ago, that we want to create a replacement parts powerhouse. You saw Paulo Gomes say that we're one of the largest companies in the replacement parts or spare parts market. We're larger than many foreign multinationals that are giant and well-known, and this team delivered what they promised, and we're confident that we can deliver in the plan that we have now.
I'm not gonna repeat everything that was already said, but there's a lot of good things happening in terms of technology and innovation. Just to give you an idea, the American market, where we're leaders with brake linings, is quickly migrating to disc brakes. It represented a threat to us. We were leaders in drum brakes, and we had zero participation in disc brakes. We're now trying to go from zero to be the leader in the American market for disc brakes, and maybe in another year, max two. They want to be more conservative with two years. We're going to quickly take on a leadership position for a new product dominated by large companies, leaving from a starting point of zero and becoming a leader in a short period of years. This is a source of great pride.
ESG was something we mentioned a lot, new products, respecting the planet, and we also talked about the customer experience with Sergio Montagnoli and Paulo. The customer is the center of everything. If we can learn to deal with our customer, transforming their journey and facilitating their life, creating value for our customers, business will be increasingly growing for us to increase this growth. We're very pleased with our current performance... and we have a path of how we can go forward. Thank you, everyone. We continue with Jessica.
Sorry if we went over time. Thank you so much, Sérgio. We are getting close to the end of the event. Before we get to the Q&A session, I'd like to invite Mara to come to the stage and Emerson to receive... the CEO of this edition. Thank you, Emerson. It's not just delivering a seal for 22 years. Now, thank you for the commitment, Fras-le, with the market, 22 years. In Brazil, this has a higher meaning, because this, a seal is given by the companies that do this meeting as a routine, finding the market, answering the questions that the analysts have.
In the moments when the market is growing with good news, that's easy, but the Brazilian market, we have hard questions to be answered moments, and the last 22 years, we had moments that answers must be given, and you were present with the market. In 22 years, this is a very important meaning to the market, the commitment to information, independent of what information you're giving, independent of the question that's coming. So the commitment of the company, this has a lot of meaning. I saw in the results, in the award, Quality Award, last edition, the main item that made this company win the award was the commitment and being close to the executive, the closeness of the executives to the executive, to the market.
It's not just delivering a seal for 22 years, but thank you for the partnership, APIMEC, and the management of the company to serve us and having this meeting for 22 years. We will continue this in this journey. This is what guides us. Thank you so much. Thank you, Mara and Emerson. I invite now the speakers to come sit in the chairs in the front of the stage, so we can start our Q&A session. It's mediated by Emerson De Souza. The people that are in person here can raise their hands, and the team brings the mic to you. And those that are watching us online, the questions have been captured during the presentation, will be answered in this moment. You can continue to send in your questions. Very well. So let's start. Jessica Decide. I'm gonna give it who's closer to me, Lucas, to start.
Don't be jealous, the others. I'm gonna start, Lucas Q. Guys, thank you. Lucas, PTG, thank you for the event, for the information. A lot of things we see in the last few years evolving. My question, one of the points that drew the attention during the year of 2023, was what you mentioned in the end session, how much the result of 2023 was stronger than expected, with a review of margin during the year. And then, of course, our exercise here is to debate what's recurrent, what's sustainable. I think the messages confirm the synergy of the information seems to be sustainable, but some people look ahead and have a bias. We see a company at a certain level. We want to understand what's the new level. What of the gain of profitability, sustainable or not?
Where do you think is the new sustainable margin level of the company? We want to know if it's stable or not.
I think the question... I can answer you with several aspects. First, we did create our-- From our results, we have two vertices. One is legacy, the other is being opportunistic. Opportunistic in the good sense. We were competent, being able to seize a market moment where we had high inflation. It wasn't possible to continue to evolve the price, and it's a moment of the turnaround. When there was a price decrease, we were able to rescue, support, no more vendors in terms of reductions. We were able to keep the price at a higher level for some time. We're giving it back for more than a year. We started to do discounts November last year, at Fremax.
But every month that goes by, we notice that we have a legacy, which is the other part. We think about it. The interval that we position our guidance speaks about what we believe in the company. The bias brings the impression of the opportunistic. It seems to be bad to say, eventually, we're gonna see margins dropping. We're very distant from the history of the company. The company did 15% EBITDA. We are adjusted 21.4%, or 20.9%, if you go to accounting. It's a different level, very different from what the company was. The legacy stays, the opportunism. We, as an executive team, guided by Sérgio and Anderson, we must be as competent as possible to leave the opportunity, leverage the result above the legacy position. But we have a different phase. I think Anderson wants to add. Feel free.
Do you want to speak? Anderson said it very well. I would just like to mention that some of the new technologies that we're bringing contributed very little, still. We're still crawling. They bring a margin a lot higher, twice the traditional margin. The point here is, once the new technologies advance and gain space, a bigger space, this will bring a margin improvement also.
Great. Thank you. I would like to thank you for the presentation. It's lovely to be here. Two questions. First one, understand with you if there's any other segments that you would like to enter. I want to hear from the market of batteries. Why not enter the battery market? You had this discussion in the past. It's important to hear from you. How is this currently? And second, I want to hear your opinion about a competitive market.
How has the competitive market changed for you guys?
Well, I want to share. Anderson is going to talk about competitive market. Paulo, Montagnoli can add if it's necessary. Regarding batteries, we can start with this. Sergio can talk about the diversity of items. We have sought a product that's different. It's a high reposition item. You want to start with the battery, Sergio?
Yes. Not with Frasle Mobility, but Randoncorp. We developed our own battery as part of our system, so we have initiatives in this field, but we want to approach, we developed the assembly, the BMS has been developed. We're developing technologies that will improve the longevity of these batteries, but we know that science, through associated materials to batteries, evolves very fast.
We don't want to invest too much in this segment, knowing that in 12 months, 48 months, there might be a new technology that can make the technology that we created 100% obsolete. With Randoncorp, we do have initiatives. We are selling batteries, but we're doing this in a cautious way. The world is investing $ billions and billions searching for alternative materials to lithium, and there are promising materials in the horizon, and we don't want to invest in something that will become obsolete soon. Before I answer about competitiveness, I would like to add, batteries, yes, it's non-elective, it's quick reposition, and it fits our business, but it's not a priority. I would answer it this way. We don't close our eyes to it, but it's not a priority. We understand that there are others that are ahead.
When I look at Underc ar solutions, where our synergy is higher, we have expansion portfolio opportunities in this route. The transmission line is very promising in Brazil. We can leverage in other geographies. We have the part of control, Nakata, for bushings, metal, rubber. There's a lot of space and synergy. Many lines we are still investigating, be it greenfield or in-house investment. There are many product lines that fit in our thesis, and it's not complete. We have a lot of space to expand. When we talk about competitiveness, it grew a lot post-pandemic. It's notorious. It has been set. I would say that average price practiced in the end of this year are lower than the prices than the turn of the year. We had more discount than price increase this year in average, but the results are here. The results have the current prices.
We are able to capture the discounts in the international market with vendors, with the chain, with internal productivity. We have revenue reduction due to price already. Our numbers, the dollar we forecast in last year's dollar was a bit higher than today's dollar. All of this reflects in one way or another in margin. But I would say we have more conditions than ever to compete internationally. When we did the acquisition, Nakata, and all that, we had access to the competitive sources that disturbed us a lot. Now, we shine in Asia. We produce in Asia. We have competitive sources in Asia, be it for Nakata, for Girotech, Fremax in Netherlands. The geography, the dynamics of geography, and the Chinese are buying, trying to recover lost time on the reposition or the aversion of Chinese market, Chinese product in the U.S. market.
They want to allocate anywhere. It's important to remember that we were able to articulate our price dynamic and cost dynamic through Asia. We have pressure, but we have more weapons to fight in this sense also. Next question.
Good afternoon, Lucas of Chase. I stay, continue with Lucas. A topic that I want to explore with you, we saw a lot of data of market share that you shared in your presentation. We see the difference, that you have a higher participation in specific lines with smaller market share. I think that this shock absorbers, at the same time, we see a position of broadly, which justifies this perspective of higher profitability. I want to understand, in market share, what's the real space that you see for market share without foregoing the barrier of higher price?
How much you can gain in market share, similar to Leomas, without having to give price? In ROIC context, I think it's an important metric that you show, but the ROIC of 17%, if you contemplate somehow giving up return to gain market, or if you can gain market share, including ROIC. Depending on the sector, these 2.7 to here. Perfect. I will pass to Montagnoli to answer how much market share we can gain without losing price. But I would like to say that we don't do a disclaimer. We don't open for product line-... It would not be prudent to give the gold to the thief. The competitor is watching the our mobility, but the premium lines we have, the Fremax brand that has a great reputation, they have participation of 22% market share.
Fras-le line has stages inside it, and I can say in the lines, we have that less market share, we have higher profitability. I think it's clear that for us, brand is price. If it's not, brand is price. The bigger the reputation, more interest from our customers and the customers of our customers in working with our brands, more resistant we will be to changes or price reductions. But we must consider that the fleet somehow will age. So if you think about the ratio of the price of the vehicle and the cost of the repair, we must pay attention to this. So I will put together total cost in every stock. We're launching new products all the time. New product for new cars, premium price is higher. Great. For other existing product, for an old car, premium price, smaller.
When we promote premium price that's smaller, you leverage market share. Does it make sense? I will answer that, Sérgio. We have advanced a lot with structures. Acquisitions we made, the Nakata and Tech are the recent car access markets to support customer, strong brands with smaller production asset, asset light. This contributes to be able to launch return on invested capital. I would say that, of course, we have an EBITDA margin that is fatter. It helps a lot the issue of return, more than investing in asset. We have an intention of growing in this direction with high return margins, with adequate market support, seeking for geographies we're not in yet, so the growth is coming from there. And what's organic is more of the same. Leverage, what should bring even more return?
When I look at M&As, Sérgio mentioned, we're looking for know-how and access, then we look at synergies. And we have evaluated not only assets like Nakata model, but ones that have the industrial part. Because when we put in our platform, in our ecosystem, we can explore additional things, product offer, leverage sourcing. The synergy, one plus one is four now, right? Yes, Juan. Would you want to mention? About ROIC. It has to do with the maturation of synergies. We've passed moments we had a ROIC that was more or less stable, then we have the stress of acquisitions-
Stress from acquisitions.
Of all of this, but once we understand the synergies, consolidate the warehouses.
So this helps our management of the supply chain, we get closer to our customers, more data-driven, connected to all this. We sold... In one place, we associate that with the supplier. The company is very dynamic now to be able to manage the capital which we've invested. The movements which we've done were always not wanting all the whole set to be light like Judotech, but at least partially. And this favors the return on invested capital. We can't forget that we reduced our fixed cost significantly. We had historically 24, 25, 26, now we're around 22, and over the long term, we like around 20, leaving the company leaner. And that's the beauty of synergy, doing more with the same structure that we currently have. All right, folks. Thank you for the event. I have 2 questions.
I want to understand how you see manufacturing and what percentage do you think you can have in terms of revenue over the long term, looking at Co-manufacturing? And the second question, you talked about several M&A possibilities in the markets you're looking at. I wanted to understand, how do you look at Latin America? What are the opportunities in terms of market size? What do you see in terms of being able to replicate what you have in Brazil, in markets which are more similar in terms of average freight age, the purchasing power of the population, things like that? So I'm gonna let different people on the team to answer. I have one colleague who will answer your first question, another colleague who will answer your second question.
First of all—
... We have to maximize the use of our manufacturing assets. A good factory is a full factory. The market, without question, is much larger than the installed capacity. To do this, we have Co-manufacturing, which allows us. Today, we have a lot of know-how to quickly allow Co-manufacturing to produce our features in all of our product categories. The speed of putting products into the market and the speed in which we have to gain market share today doesn't depend on the assets in manufacturing, because we can be using Co-manufacturing. But I think the answer is, first of all, all our factories need to be full because this maximizes the use of our assets, and anything we need to grow is with Co-manufacturing.
Putting in a number right now is hard, because what we can do right now is the limit is infinity, because our capacity is infinite, is infinite. Let me just add to that. Today, more or less 35% of manufacturing... Why am I saying that we're not gonna float so much? Whether it's 50/50 or maybe 70/30, depending on the M&As, this all affects this. But as I'm able to have stable demand in a particular location where access to market, for example, Armetal, when we purchased Argentina, Juratek when we purchased the UK, this gives us volume of things which we already produce or manufacture. When I have consolidated volumes, I start to think about the possibility of manufacturing. Obviously, I have the competence for this. So this is the calculation that you're gonna do.
At some point in time, you're gonna decide to make, because outsourcing manufacturing is not a marriage, it's just like a dating relationship. There's several risks. You know the risks. There's not a lot of loyalty, there are some times where you have some issues over quality control or efficiency in delivering what was promised. We lack some of the maturity that we'd like. There's also a problem in China, especially in China, which I've observed, where we have family transitions. This is usually based on an owner or a person. You have to have a second and third sources. These things are very dynamic. We can't go so deeply and expose ourselves to outsourcing too much or too little to keep you from growing as the market wants you to grow. The second part of the answer was about Latin America.
We're very prepared for growth. We have a sales structure which covers the region. We have over 25 people to sell for all Latin America outside of Brazil. The markets start in Mexico with the most relevant fleets. Colombia is another large market. Obviously, Argentina, despite all the economic restrictions, they think over the long term, this will be resolved. We went through something even harder in Brazil in the eighties, but I think that as Brazilians, sometimes we don't notice this. Emerson and I came back from a journey in Latin America. Made in Brazil is very relevant. Brazil, along with our brands, have a lot of brand power, both in Fras-le and Fremax. We even want to select which brand to use in the region, regardless of the brand to use in Brazil.
Most relevant brand we have as in Latin America is Fremax. A lot of the pads we sell with the Fremax brand, with the reputation of Made in Brazil, plus that's very valuable. We did a little homework, and we want to manage our portfolio better and guarantee full success. I think in 2-3 years, we'll be telling a great story, and we'll talk about M&As as well. All this is related to the access to markets, which are so great, we don't have relevance. The Mexican market is even more than what we showed here. Almost 40 million vehicles. A portfolio, totally different than Brazil, but with similar aspects, because for a long time, Mexico and Brazil exchanged manufacturing bases. There are a lot of cars manufactured there that are made here and vice versa.
It's very complex to do this alone, but I think that in Latin America, Mexico closes the circuit. We have a relevant position in Argentina and Colombia, and the other countries wouldn't bring to us any significant growth. We went past our scheduled time. So we're gonna open for a final question?
... like you to be quick. We have some of you are going to another event tomorrow, some of you have flights to catch. We don't want to harm anyone, so we're gonna go with one more question. And if you wanna email us a question, we can answer it at another time. And then if we hear it from Bradesco, I'd like to ask about the growth avenue in OEM. I wanted to understand, Fras-le, 3-5 years from now, what do you see that this segment will represent? What percentages are you thinking of? Related to this, I imagine that the changes in regulations and the regulatory product requirements are more relevant for the OEM, and I wanted to know if there's anything else related to the area which would be a change that would be relevant for you guys.
Because you mentioned that not only is our head of technology, he's also responsible for OEM. I think that Anderson can talk about this in terms of the size we want to have with OEM and system in, regarding the features. The question is maybe centered around the light line. I don't know. I'll start, and then give it to Anderson. One front that we're facing once again is the light line and discs and pads. We decided for several reasons, the possibility of volume. If we do our work right, we'll have a long-term business. So our vision, which we established, is we can't fight over less than 25% of the market share. That's the challenge which we brought internally.
Once we decide to participate in the market with all the resources and everything that we showed you here today, with our research center and all the other strengths, we can't allow less than 25% market share. That's what we're going after in the next several years. Composite journey is very connected to this. It's hard to put in a market share. We started supporting mud flaps. This truck is 5%-6% of the market, will go up to 7, 8, and we have open opportunities to develop with 6 of the top 10 trucks in the Brazilian market. And so we have a view of other components as well. We talk about this, we can be even more clarifying than talking about market share. You mentioned the number 25. That's our target. I think that looking at pads and discs...
I think that your question, what would be the market share for Fras-le? We want at least 25%. I think that in friction, we're not gonna change a lot, this 12% in the revenue of the company. We're gonna keep growing in replacement, very aggressive in how we're growing. Composites don't have any similar product, and so we love OEM because it gives us the chance to leverage replacement in terms of reputation and premium price, but it also pulls us to deliver quality and value with excellent performance. This will bring us a great differential in the market, remembering that all the parts that we sell, you sell 1 at the OEM and 7, 8, and replacement at a higher price than what you sell to the OEM. Say, always 10-15% share.
I think there's time for one more question. Can you give him the microphone? Last question.
Thank you. Federico from Morgan Stanley. I wanted to do a follow-up regarding the first question of Lucas, related to the margins, the dynamic of the margins. I think we can congratulate you for your excellent performance, but at the last quarterly release, you commented some factors which contributed to this margin. I think that there was, like, aspect of costs. There were also other synergies which you mentioned. So to follow up, I'd like to understand a little bit about how much is the cost dynamic and how much is synergy. We had a jump in 5% of gross margin. If you could explain how much is related to costs and how much is synergy? That'd be interesting.
The other thing I wanted to understand is looking at investments from here forward in terms of CapEx. You have guidance for 2023, but historically, looking at the company, you've always done investments based on the generation of operational cash in a relatively conservative manner. I want to understand, from 2024 onward, what are the premises that you'll consider when you think about this CapEx amount? I wanna concentrate. CapEx is always guided by around 20%-25%, around 20%-25% of operational cash flow. I think it's necessary, but as we buy assets, they don't require such investment. We're at a level of 30. We modulated around 25, and I think we'll follow this. Obviously, new projects might demand more, but we want the operation to evolve.
When it comes to the gross margin, I always repeat that there's more legacy to synergy and operational skill and the productivity which we achieve in being more efficient in switching out our sources, all this productivity. There's more legacy there than opportunity. I'm very comfortable. I think we're gonna have a company at another level. It's competitiveness with our customers. We need to sell. Does no good to increase margin if you don't sell. So I can't separate out what's cost or what's synergy, but I can tell you that it's a lot more in terms of the whole collection, in terms of joining all these aspects than any one opportunity. Very well. Those of you who didn't have your questions answered, please, seek us out for us to do this through our investment relations team.
I'd like to thank everyone who's present in Joinville, here at Ágora, at this great center for innovation here in the city of Joinville. And I'd like to thank those of you who are with us in our YouTube channel. We had a great audience today, and we're very happy with the team to be hosting this event for Frasle Mobility once again. We're always available to answer your questions. Thank you very much. We're closed now.