Morning, everyone. Welcome to another edition of Results in Focus. I'm Priscila Grecco Toledo, and I'm the CFO of Itaúsa. It's a pleasure to be with you to present our results of 2025. Share the business perspectives for 2026, and I'll, of course, answering your questions. To run this live along with me on my side, we have Alfredo Egydio Setubal, CEO and Investor Relations Director of Itaúsa. Welcome, Alfredo. Good morning, Priscila. Good morning to our shareholders, our investors. We are delighted to have you. We're gonna have a great event. We have good news, good results, and let's move forward. Well, before we start to go through the agenda of the event, we have simultaneous translation into English.
If you need, just click in the platform, the English channel, and you can, and you should take part of our event, submitting your questions, comments, or suggestions. Please click in the box of messages in the platform on YouTube via comment and X using the hashtag resultadositausa. From this edition, we are transmitting this event through LinkedIn, and you can also submit the questions via the comment. Now let's see the agenda. We're gonna start by the traditional outlook by Alfredo on the business environment, seeing the perspectives of 2026. We're gonna go through the results of Itaúsa and our portfolio of 2025. Liquidity management, we are gonna talk about this, and we're gonna talk about covenants. This is awaited, and then we're gonna talk about the Q&A session.
Once again, to start, as usual, we have our talk, and we wanna get your two cents on the business environment. 2025 is a very challenging year with high interest rates. How has the scenario impacted our portfolio? What can we have as a normal for 2026?
Well, yes, Priscila. Last year, we didn't have a big expectation on the performance of the economy, the international factors that affect Brazil, and the scenario is confirmed. We had an increase throughout the year of the interest rates. We have the economic growth of Brazil that is smaller. We had an external, you know, very difficult start abroad, internationally. In general, our scenario was relatively favorable. It's a good performance by the bank with the risks very good, delinquency controlled. The portfolio of credit is growing. The bank has done very fairly well.
The companies in general are growing above what is expected. All of this stems from cautious, difficult scenarios and challenging scenarios through the last years that we've done. We have built a resilient portfolio for scenarios that are more difficult. These are companies that are for utilities, infrastructure, natural gas. We have a portfolio that has fended off very well through the challenges. We are very optimistic so that this year we can continue to have this good performance due to the solidity of the portfolio, regardless of being in a challenging environment. Interest rate is high, economy should grow very little. We have an international scenario that is confusing, two wars taking place, elections in October. In Brazil, that is a component of uncertainty. Who will win? What is the policy adopted? It's an environment that demands caution for our portfolios and our investments.
Very well. Let's see how this scenario that Alfredo has narrated has reflected in our results. We had a year of record results. It reflected the capacity of creating value in the macroeconomic context that is very challenging, showing the resilience and the quality of our portfolio. We reported the recurrent net revenue of BRL 16.5 billion, a growth of 11% in regards to the previous years, which has the return over the net assets with a growth of 1 percentage point in regards to 2024. Our net debt reducing 67% in the period, getting to BRL 0.3 billion. The lowest threshold in the last three years.
Our net assets, a slight reduction due to the proceeds that we declared during the FY. Market value of Itaúsa getting to BRL 160 billion. Valuation of 68% in regards to the last year and much higher than the Ibovespa index, which has a performance of 54%. In the same way, the market value of our portfolio with a valuation that is 66% in the period, getting to BRL 210 billion. Also much higher than Ibovespa index. How is this reflected in the valuation of our share? Well, we see through several periods, different time periods, our share performing much higher than the market benchmarks. Ten years, it's valuating 474% in comparison to 271% of Ibovesva.
This differentiated performance is repeated in a very consistent way in the short term and mid-term. I think it's a differentiated performance with another component for the creation of value for our shareholders. Even with this, there is still a lot of upside for the shareholder to capture. The market value of our portfolio, BRL 207 billion. Out of those, BRL 193 billion is referring to our participation at Itaú Unibanco, and our portfolio of the non-financial sector getting to BRL 13 billion in the market value. Let's remember, we have non-listed assets still being considered with the books. Aegea and Copa Energia, which leads us to the market value of BRL 160 billion. It leads us to a discount on the share of the holding of 22.6%.
You followed recently an increase of capital in this year, in March, still with Aegea, which leads us to having a new fair value for this company. We also did an update on the fair value of our portfolio, incrementing the fair value in BRL 3.2 billion, reflecting the new realities of values for this asset. This leads our value of portfolio getting to BRL 210 billion, and it generates an increment of our discount of 1.2 percentage points. The discount is almost 24%. From this date onwards, we're using a new fair value of Aegea to show you and do the follow-up of how our discount is evolving. Alfredo, we had a good reduction of discount in this year.
It was four percentage points since the beginning of the year of reduction, but still there is a threshold that is very high considering what is justifiable of cost of holding. Still very high threshold.
Certainly, Priscila, the discount is reducing. We had a discount in the last months of 25%. Now, with a comparable base of 21%, 21.5, looking at the quotes of the last days, as you showed, if you place the share of our Aegea in the same valuation of the last subscription of the shareholders of the company, this discount goes back to 23%-24%. We've read the research of the analysts showing this exaggeration. This discount tends to, once again, going to 21%, taking into consideration the new valuation of Aegea in our portfolio.
Added to that, the discount is being reduced by the higher conviction of the shareholders and analysts that our fiscal inefficiency will be reduced over the next years. As we're gonna have a tax expense that is lower than BRL 850 million per year, which is a lot due to the end of the PIS and COFINS tax that we pay because of the interest of our capital that we receive from our invested companies. I think our public will understand this number better. All of that has taken to a discount much lower. I believe that there will be the discount that will be reduced as the value that is hidden, so to speak, in our portfolio, such as Aegea, will appear that Itaúsa has been capable of doing good investments with high returns, much. Some even higher than Itaú Unibanco.
Well, let's remember that in this market value, we still consider the Copa Energia at the book value. We know that since the investment, the reference of value has changed. We still understand that the implicit discount in our share is much higher than what we are showing. The market should be following up. There are important assets that should lead to the reduction in the discount over the next few months and years. Let's go over our next issue, which are the results. Let's give a panorama of how it was the performance of our invested companies, starting by Itaú Unibanco. We had the results that were very solid, very robust of the portfolio of credit, delinquency under control, and efficiency levels that are ever better.
Reporting the net income under IFRS of BRL 45.4 billion, 10% growth in regards to the previous year and an ROE 21.8%. Dexco has an important performance of growth in the segment of the performance of the evolution of cellulose, soluble, and still with difficulties in the finishing sector and ceramics. Reported EBITDA growth of 19%, getting to BRL 1.9 billion. Net income, BRL 46 million, a drop from the previous year because of the factors that I commented, but also as a reflection of higher financial expenses and also lesser impact for the reevaluation of the biological asset. Alpargatas, a very positive year for Alpargatas after the turnaround process.
The growth of volume with an improved improvement of net margins, better mix of products, geographies, and also an improvement of the business, international business, that has led the company to do a report of results of EBITDA of BRL 866 million, a growth of 101%. Very expressive in regards to the previous years. The net recurrent income, which is net recurring revenue, BRL 611 million. The growth in the results is due to the demand growth in all the models that the company operates. Also a growth via readjustments of tariffs, and also a reflection of better operational efficiency and a reflection of all the work of optimization of portfolio that the company has done over the last years. Reporting an EBITDA of BRL 10.2 billion and net income recurrent BRL 1.2 billion. Motiva. Copa Energia, positive year.
Growth in volumes in the businesses that a company operates and also an impact in the higher spreads of the business. The EBITDA, BRL 1.3 billion, a growth of double digits. Net income getting to BRL 705 million in the period. Also with the growth of results with a reflection of the IGPM, the contracts, getting to an EBITDA of BRL 7.2 billion, net revenue of BRL 3.6 billion. Aegea hasn't concluded the results. We are presenting the numbers accumulated till 9 months, growing numbers, the economies and reflecting the tariff adjustments and new concessions that got into the period. Even though there is a reflection of higher financial expenses, the company still has an important growth in its revenue of 18%, getting to BRL 1.7 billion.
Alfredo, given your overview, I think it was a positive year with the growing results showing resilience in a scenario, macroeconomic scenario that is challenging.
Yes. These are strong results. Our main asset, which is Itaú Unibanco, has performed very good in terms of results, in terms of growth. In a competitive environment with the incumbent and the fintechs that are growing and occupying their space in the financial sector. The bank has had the capacity to deliver results, to deliver products, technologies, new technologies to the product. To highlight, not to take too much time of our shareholder and investors. Well, first, Alpargatas. I think that Alpargatas we had in 2022, difficult years. The company lost market share. Operational issues, and the results were negative.
Well, we had good results, and over the last years, 2024 had a recovery, and 2025 we see solid results for the company. Recovering its rhythm of growth, the market traction, the recovery in the international market. Rothy's, which is the subsidiary of Alpargatas in the United States, the production of shoes, also a growth of sales, opening new stores, generating cash.
So Alpargatas, they paid proceeds.
Yes. Last year, they proposed a capital reduction of Alpargatas, BRL 850 million, that was distributed to our investors. Alpargatas has recovered its normal, natural rhythm of growth. Havaianas, strong in Brazil and abroad, it's moving along. The negative highlight is Dexco. Still facing many difficulties in the ceramic parts. The wooden panels doing well. Deca is recovering.
Metals and the ceramics, once again, we have had difficulties in the ceramic tiles that we have a competitive market, a lot of offering. Reduced margins. Our expectation for 2025 was that 2025 is the bottom of the performance of the ceramics. We should, from this year onwards, have a recovery. We've seen in the results, the results are very small with the cost of capital and the minimum return. We're addressing some, we're selling some assets that to reduce the high leverage of the standard of our companies. 2.3 about that, we wanna reduce that to 2.5-2.7. We're selling some assets, so Dexco is getting into a scenario that is better from this year onwards.
Okay. Let's go to the composition of the net income.
We closed the year with 16.5 billion with the recurrent, and we didn't have recurring events in the period, and a great deal of our results comes from the invested companies. Itaú Unibanco are the biggest contributor for this result, a growth of 10%. Here is worth highlighting that our portfolio non-financial has contributed with over BRL 1 billion for our results. Another point to highlight is that this contribution has grown through the year 42%. It's a rhythm that is much more faster than Itaú Unibanco, which is obviously a more mature asset. An important highlight in regards to the growth and the performance that is stronger in the non-financial. We have a worsening in this period with the higher expenses, tax expenses. The financial result is stable for the period. We're gonna talk about that.
ICS is an accounting reflection in the period and no big highlight. The contribution of our invested companies, BRL 17.5 billion, it was the contribution in the financial sector, BRL 16.7 billion, and the non-financial with a contribution of BRL 1.1 billion. A growth of 41% with a highlight for Copa Energia, Motiva and Aegea. All are bringing contributions that are important for the period, which is important. The other ones are an accounting amortization that were allocated at the acquisition, but it's an accounting effect. Now, going to the result, there was a worsening of 21%. Here, essentially because of the higher tax expenses, we had the benefit of the higher interest rates of our Itaú Unibanco. We have an impact of higher expenses of PIS/Cofins.
In a year, the expenses paid by Itaúsa, BRL 600 million of PIS/Cofins, and we pay via the IUPAR, the subholding, another BRL 250 million of PIS/Cofins taxes, totaling the BRL 850 million of expenses that Alfredo commented at the beginning of the presentation. This is the last year of PIS/Cofins, so this is the last year that we should have an impact of that expense, which is very expressive of our cost of holding. That's why we expect that during this discount, this will have a less tax expense that will be very representative next year. Another important highlight, our administrative expenses hasn't grown year-over-year. It was stable even with an inflation above 24%, above 4%, and with the impact of the payroll.
Now we have had a reflection of efficiency programs that we implemented in the company, and we could have a delivery of administrative expenses of flat year-over-year, which is another important highlight should do. Let's talk about the financial results. Our financial result is stable, even with the Selic rate growing and impacting the expenses with the debentures. Now, as a reflection of all the liability management that we've done over the last years and we've done in this year, I'm gonna comment up ahead where we did the payment, the refinancing. We saw our interest expenses dropping in a year. Our profitability in the cash flow increasing because of the higher Selic rate, and this was compensated with higher fees when we prepay anticipatedly the debentures.
This is a specific fee that will compensate for the reduction of expenses of interest rates, but with a positive scenario that generates and brings positive perspectives for the year for the reduction of the interest rate expenses because of all the initiatives that we are implementing. This is a positive scenario. Now, the next topic, which is liquidity management. Let's remember a series of initiatives that we've implemented since 2022. Let's remember that 2022 is when we got to the highest debt threshold in a half. Of course, that after the acquisition of the old CCR, which is Motiva. We did the prepayment, improving our debt profile. Since 2022, we reduced our net debt in 62% because we have a net debt of BRL 3.2 billion.
Our net debt has reduced 94% since 2022 at a threshold of BRL 0.3 billion. Also, as a reflection, we've had the servicing of debt and payment of interest in this period. We have a level of coverage of interest very healthy due to the proceeds and also a profile of debt which is about 7.1. It's important that we increased the average term of our debt by 3 years, and at the same time, we had a reduction of the average cost of our debt. Now at the threshold of spread of 1%, which is the threshold that is very healthy. We don't have any amortization, which gives us a lot of tranquility.
I'm gonna show you the agenda and the rating agencies that evaluate our risk contribute to give the triple A rating for the quality of risk of Itaúsa. Going to our amortization schedule, the refinancing and the prepayment of debt that occurred in 2025. This has led us to a schedule of amortization that is very healthy, as I told you, without any payment until 2028. We removed the concentration of amortization that we had in 2029, 2030, 2031, and increased the amortization on the long term, leaving this profile for the schedule of amortization much more aligned with the cash generation expectation of the sector, non-financial of the portfolio as a whole. Here, all the leverage indicators and the profile of debt, very healthy, reflecting the solidity and the liquidity of our treasury.
We've done an important reduction of debt, and this has given us a very positive liquidity position of balance as well.
Certainly. Priscila, we've done a correct reading of the scenario at the end of 2022 when we did our last investment, acquiring shares of Motiva. I believe that what is the scenario that we are gonna have? Well, it's a scenario that is less growth, higher interest rate, with more difficulties of finding good options of investments for the portfolio. From the moment onwards, with this scenario that we pinpointed at that time, we have the process of reduction of the debt and increasing the debt. It was the correct vision. We reduced substantially the debt. A reduction that is very significant. We continue to analyze investments. We haven't seen anything in this period of investments that would justify the capital allocation in new companies.
Taking into consideration that the interest rate, the level of return that is expected that would justify the investment of Itaúsa, we didn't find anything that would justify taking the risk with the difficult scenario. We did well. The strategy worked. In this period, we saw the companies that we invested consolidating in terms of results, strategies, growing. The companies of infrastructure buying other concessions and other companies, so we could grow our subsidiaries. This with a lot of surety, governance, but control of risk. I believe that it was a journey of consolidation of the portfolio that we started in 2017 that was very good, very safe. The companies are growing. The participation of the non-financial companies in the portfolio showing a certain relevance.
Itaú Unibanco is so big and our participation is so high that it's very difficult with the performance that the bank has with this portfolio to have a diversification that is very relevant in our whole. Nonetheless, it shows. It shows results that are solid, a participation of almost 10% of the result. The company is paying proceeds, that's helping our expenses. I believe that this is a great moment. 2026 is still challenging, but the portfolio in the way that it's assembled, it's very resilient for difficult environments, and we will benefit in a favorable environment of dropping interest rates in an economy that is more dynamic. I think we did well. You highlighted an important point. We controlled the operational expenses of Itaúsa. We practically had no growth of expenses, several contracts with providers, technology services.
We kept the expenses of the holding under control, and that's important. It's important that we do this to show that we're doing management that is very diligent of the expenses of the holding. The ratings speak for themselves. All the rating agencies are giving us triple A. This is reflected in the possibility we issued debentures of 10 years, which is very, very rare, at very convenient rates. We did 0.6% above CDI with a 10-year deadline, and this shows the trust of the market and capacity of Itaúsa. It shows the capacity of Itaúsa of seeing difficult scenarios.
Now I want to talk about proceeds. It's awaited by the audience. We've had a very positive year for the payment of proceeds. BRL 11 billion, over BRL 11.8 billion, the highest threshold of payments, 24% increase in regards to the previous year.
This led us to a payout of 76% and a dividend yield of 14.7%. This, if we just consider that the part of the dividends are anticipated, the dividend yield will be 9.5%. Lots of assets, and the third highest dividend yield in the B3 in the period. We had movements of payments. Since 2025, we've done payouts in to our shareholders, and we've done over the last year with the attributed cost of BRL 11.3 reais per share, and it helps the shareholder to capture a tax benefit when they do this investment. Positive news, and we should highlight the growth that we've had of the proceeds in the non-financial sector.
We've seen over the last years an expressive growth that is very much aligned to what Alfredo said, growth in performance more of the financial portfolio. We've had a threshold of 1.2 billion in proceeds and 50% in the average of growth year-over-year, and this has a positive perspective. Remember that these proceeds, we've retained them in the company, facing the cost of holding and administrative and the service of debt and tax expenses, but it shows a perspective that is very positive. Next year, we're gonna have the reduction of the tax expenses. That is very relevant, BRL 850 million less, so it's a positive perspective.
We're gonna be able to pay that. The Itaúsa expense is a tax expense. We are gonna have this per year, which next year we're not gonna have any more. This makes us feel at ease because as you're seeing on the screen, the amortization of our debt, we're discussing about these values of BRL 250 million of amortization of the debt per year. That gives us a lot of tranquility that we can possibly wouldn't need to do any capital facing the amortization of this debt, just the cash flow of the company. This is enough for this amortization. If the interest rates drop, then we're gonna have some resources. These resources can be invested in new investments if the context is favorable, or we can distribute to our shareholders an additional dividend. We distribute usually what we receive from Itaú Unibanco.
We could, depending on the context, we can do additional dividend distribution from the dividends that we receive from Itaú Unibanco. We are well-positioned in terms of results, in terms of cash flow, reduction of tax expenses due to the approved tax reform that was approved, a positive moment.
Very good. Yesterday, there is some news, the approval by the board of the anticipated statement for the FY 2026 of interest on our capital, our own capital of BRL 1.1 billion in net revenue. The shareholders that will have right, they have a position at the March 19th this year, and the payment will be defined, but it will occur until August 31st. Another positive news.
Before we talk about the closing arguments, Itaúsa publishes the news on the holding of our portfolio in the newsletter and the social networks. Please enroll in our LinkedIn channel. You can see our newsletter at Itaúsa. Also at the end of this transmission, please see our satisfaction questionnaire. We can continue to improve this event every edition. Just capture this QR code or click on the button below the transmission screen. Well, we showed a good result panorama. Remuneration that is growing, a very attractive performance of action that is overcoming the benchmarks, and it was very positive. Where we had recognitions, several ones, of the practice of governance, sustainability, transparency and people management. We had the GPTW recognizing our practice of people management. We continue to participate through several years in the main sustainability indices, recognizing our practices of governance and transparency.
Through the consecutive years, we are at the Dow Jones Sustainability Indices. We were recognized by the relationship with the investors, the Investor Day, our transparency, and the board was recognized and awarded by Extel, the Extel institutional investor. It's an award that fills us with pride. Alfredo, positive year in regards to results and also recognition. In a year that we complete 50 years of trajectory, so very important for us.
Certainly. It was a very special year of our holding. At B3, Itaúsa has a very solid, very beautiful governance in terms of investments. It's been a journey that reflects all the importance for the market, for the transparency in events such as this. We are showing our performance, our values, what guides the day-to-day of the company governance, sustainability, ethics, transparency. We try to be sincere with our comments, with the good things and the bad things. With such a diversified portfolio, it's a year that is good. A lot of celebrations, a lot of recognition. Certainly, it's a reason of pride and joy for all of us that work with Itaúsa, the controlling families, this story of success.
Remember, Priscila, that we have 930,000 natural, well, individuals that are part of the shareholders in all the regions and practically all the cities of Brazil have a shareholder of Itaúsa. This being a recognition, it brings more responsibility because we are influencing the lives directly of over 1 million people that trust our strategy, trust our values. This is very nice, and it brings that additional responsibility of allocating the capital of the shareholders in a responsible way without dropping the ball in the responsibility of Itaúsa, the size of Itaúsa. Sustainability, environment, education, and several aspects that our companies, our foundations and institutes work throughout Brazil. It's a very nice year. We have a lot of challenges and opportunities.
Well, Alfredo, it's about time that we are going to the Q&A. I wanted to give the floor so you can do the final considerations. I wanted you to close the event well.
We've gone through several themes. The most important is to highlight our tranquility of doing investments or not. We are a private equity company and investment fund. We are mandated to do investments.
We have the freedom to do it, and we've done this with a lot of success over the last 8 years. We did an investment program that is very solid with a resilient focus. We've performed our shares above the benchmarks of the capital markets and the financial benchmarks. We see the results of 10 years, and we overcome even the CDI index, which is a difficult one to beat because the real interest rates in Brazil are very high. Well, we've performed well. We had good performance. We still have hidden book assets in our portfolio, which the companies will be listed, so increasing the proceeds. So we're gonna have a portfolio that is very robust. There is a portfolio that without Itaú, it's about BRL 20 billion. In Brazil, in a portfolio, that's higher than most companies that are listed in the stock exchange.
Even though it's small in the portfolio of Itaúsa, it's very relevant when we see what the companies are, the portfolio as a whole, and we see that Itaúsa takes part on the Brazilian economy in a very interesting way through leading companies that have very well-known brands from the public. So this gives us a lot of energy, so we can continue the work. It was a good year. Even though we had the internal difficulties, we are well-positioned, we are very good, and now we're going to answer the questions of our investors and shareholders.
Well, Alfredo, it's time to answer the doubts of our guests. Let's start with this block with the questions of the market analysts that we have invited, they can ask their questions live in our event.
Meanwhile, you can ask your question using the message box of the platform via YouTube and LinkedIn or through the comments, or using X via the hashtag # ResultadosItaúsa. Take part. Our next invitee that will take part with us is Daniel Vaz from Safra. Well, Daniel, welcome to the event.
Thank you, guys. Thank you for the opportunity of taking part in this panel. Well, I wanna talk about Aegea. Recently, we talked about the magnitude of value because of the data valuation and the IPO. Aegea has taken concrete steps in the direction of the IPO. We saw the conversion of re-registry at CVM, the hiring of this possibility of offering, but the expectation of the first quarter of 2026 with the volatility, it seems that it closes the window through a determined time We need to know how you and the group of controlling shareholders are thinking about this offering and the timing. The intention is to be ready as the window opens. Second question, follow-up. Do you convert the preferential shares that you have in an IPO, the ones that are right to vote and-
Well, Daniel. Certainly, Aegea is scheduling to do an IPO. They announced that. This first window, as you stated, it was more difficult due to the war and all the impacts that that has brought to the market. But it's a window that the company itself wouldn't be able to exercise, as we're still closing the balance sheets and, you know, they haven't done their quarterly review. Well, this IPO should occur at the end of May, beginning of June.
There might be a favorable moment, using the information that is available from the first quarter of the company. The project IPO for Aegea is still ongoing, being worked at full speed. The banks are hired. We have done the sounding in roadshows in Brazil and abroad with potential investors. In doing this IPO, it will be an IPO that may be one of the biggest ones that we've seen. The company is big. It needs a capital structure that is more comfortable to face new investments, new opportunities that it has. At the same time, deleveraging the results and its debt. We continue with the project IPO. The PN, well, I don't see the conversion. Might be possible that at this moment the company itself will reduce its debt and all of that.
Eventually, there might be a repurchasing of the PN shares, which is capital. But at the same time, it can be considered a debt. Still is very premature to discuss what are the impacts of Itaúsa with this IPO. The probable impact is that it will unlock more value of our investment, which has been very profitable. A part of that has been unlocked with the capital of the shareholders. It showed a valuation that is much higher than the one that we got in with the capital of the company five years ago. The IPO will show an unlocking of this investment, showing that this was a positive investment for Itaúsa. The company has a lot of potential of growth. We will continue to be shareholders of Aegea. Seeing there is potential of growth that it has in Brazil with new bids and all that.
Well, our next guest is Yuri Fernandes from JPMorgan.
Thank you, Alfredo. Thank you, Priscila. Well, I wanted to go back to the point of Aegea. We need to see the IPO of Aegea to see the cost of market or the increase of capital could lead to a re-rating of these assets. It's at the book value, so could there be an unlocking of value or. Well, given that the increase of capital was done at book value. So that's the first question. The question about the discount and the tax reform. Well, I wanted you to reinforce this message. How much do you believe that there should be a discount on this tax expense should make the investors realize that from 2027, a great deal of the discount should stop existing. Once again, to reinforce this message for this story.
Well, thank you, Yuri. About Aegea, since we had significant influence in the company, we account this investment via the equity method. It's not allowed that we reevaluate this asset, and we bring it to fair value to our books. Accounting-wise, even after IPO and after this increase of capital against the value, we cannot bring all the investment to fair value. Accounting, nothing changes. Of course, we start, as Alfredo said, we are going to unlock value. We start to consider the new reference value for the calculation of the discount.
We start to have a vision that is clearer from the market of the real value of the asset. What was the return that we've obtained with this investment? In regards to this, we're gonna have more clarity about the created value with the investment that we've done. In regards to the discount that I can comment, we've seen the movement since last year, when we closed the year with a threshold of 25%, even higher. We closed the discount that was reduced at the beginning of the year, already getting to 21% because of the old methodology, and we realized that with the entry of a lot of foreigners with a base of shareholders of Itaúsa, we realized the market being assimilated and trying to capture this lack of efficiency. Of course, the discount is very high.
We've done a great initiative with the reference of investors. There is a schedule. Well, the foreign investors, they don't know the tax reality of Brazil. They don't have a lot of details of our tax reform. We are going to be more active with the foreign investors. The perspective is that as time goes by, as we see the fiscal efficiency improving, the market will see this in our share. This is what I wanted to say. You want to comment? Next, we have Eduardo Nishio from Genial. Welcome.
Thank you for the opportunity. I wanted to do a follow-up on the discount. If you can tell us, in your opinion, what would be the fair discount of the holding in regards to the sum of the parts, the vision of the management. We can close those triggers.
Itaúsa has increased its discount 2.6%, as Alfredo has mentioned. In a comparable base, this is 21%, the discount. I wanted to confirm, if we priced the PN of Itaúsa, if the discount in our vision would be a little bit above 23%, so there is a discount that is higher. In this part of discount, Priscila mentioned the unlocking of value that you are expecting. Besides the potential of IPO of Aegea, do you see other interesting triggers, such as what you did with Aegea and relevance of Copa Energia in your portfolio, of course. Do you see any similar movements to this? Thank you.
Thank you, Nishio. Well, let's comment. The calculation of the discount. We see important triggers.
The end of the fiscal inefficiency, there is the IPO of Aegea, and it will be clearer the issue of value with this investment. I think that we can have the realization of our portfolio, and I think that that is an important trigger over the last years, over the next years for the discount, reducing, well, the capture of the value created of this investment. Another trigger that is important that we clearly showed is the evolution of the proceeds of the non-financial sector. Last year, we had receiving BRL 1.1 billion of these proceeds. We are still keeping these proceeds in the company, facing the cost of holding. As Alfredo said, we have a perspective that is very positive of these proceeds growing more because of the solidity and resilience of our portfolio.
Consequently, our cost of holding will be reduced with the end of inefficiency in such a way that maybe at some point we can pass on part of these proceeds to our shareholders. The market tends to price this with our share. Of course, this depends on the scenario, the opportunities, but it's an opportunity to be considered. Fair value vision. When we do the calculation, what would be justifiable and considering the end of the fiscal inefficiency from next year onwards, we get to a discount of three percentage points. Of course, we don't see throughout the world holdings operating with a level of discount that is so low.
We don't see that Itaúsa will have such a significant reduction to the point that it will represent just the present value in our cost of holding, which will be essentially the administrative costs that we have and part of the service of the debt that is left in the balance. Yes, we understand that there is a perspective of reducing, because of all the triggers that we see to unlock value of our shares, but not to the point to get into the justifiable three percentage points by the cost of Itaúsa.
This is a technical justification. In Brazil, there is holding, but, and there are others that are, discounted. Well, Itaúsa is a specific holding because 90% of our investment is Itaú Unibanco, so it wouldn't justify higher discounts in our vision.
The other investments that we've done are very good with interest rates that are very high, some even higher than the required return rate of Itaú Unibanco. We see that this discount, because of the reasons of tax inefficiency, the proceeds that are received by the non-financial companies are growing. At higher thresholds, we understand that this discount is much higher than what it should be. It's up to the market to do the justifications. I think that where we have unlocking, Nishio, is Copa Energia. We do not see Copa Energia is generating a lot of cash. It has an EBITDA below 1%, indebtedness. We do not see at this moment no such thing that could do a marking of the investment above the book value.
The company is very stable, very resilient in terms of revenue, which generates an EBITDA annual of BRL 1.1 billion. We can use a multiple that is not very high, and you will see that in a simple math, the value that we have there that can be unlocked is very relevant.
Complement of the PNs of Aegea. We have the value in that we updated. We considered the update just for the ONs. This was the difference of the price and this capitalization, but the PNs are still with the accounting value in such a way that we have a delta with the participation of Aegea via PNs. Here, the next invitee, which is Thiago of Goldman Sachs. You can ask your questions.
Thank you for taking my question. I wanted to know about the administrative expenses. As you move along to the end of the tax inefficiencies, the expenses will be the main financial factor for these justifying the discount. Looking at the performance of this line, we have this visibility in 2025. I wanted to understand what kind of efficiency do you still seek internally, and what is the best way of thinking about the administrative expenses of the holding? Or do you think that there are more efficiencies to capture inte rnally?
Thank you for your question, Thiago. We've done a very important work optimizing the contracts of the company in consulting and technology over the last years, and we managed to do an important reduction of the administrative expenses. We kept a year without a lot of growth in the expenses. We've reduced the reduction.
We did a reduction of expenses in terms of contracts that is very adequate for the reality, the context and the challenges of the company. We see how the expenses are evolving. It's in a more organized standard and inflation, and we are always paying attention to the opportunities of looking for efficiencies. We have a journey of investments in artificial intelligence. That might bring some important results over the next years. For this FY, we see the expenses increasing in line with inflation because of the investments that we've done in technology. The next guest, Eric Ito, Bradesco BBI. Eric, welcome.
Thank you, Priscila, Alfredo. Thank you for the opportunity of asking questions. I have two quick follow-ups. You commented with the response of Nishio and also the comment of follow-up of the portfolio turnover. Maybe selling the assets, you're talking about Dexco. Thinking about the holding, we've heard some potential conversations about NTS. What can you share of turnover? The follow-up is what would you do with the allocation of this money that could come? Would you increase the participation or would it be really just an extraordinary dividend? Second question, the dividend of the non-financial. It increased the participation in this year. What can we think about unlocking the value, increasing the dividend because of the participation of the non-financial? What can you give us in terms of timing in regards to this?
Thank you, Eric.
I think that there is a portfolio. We've done a portfolio management of the participations that we have.
I think that part of this investment that we've done, that we've generated reduction, potential reduction of our tax expenses of the end of the PIS/Cofins, we have the cash that can be used to be amortizing the investment and to increase the dividend, the proceeds that we pay above what we receive with Itaú Unibanco. From next year onwards, I think it's possible to have an increase of dividends above what we pay for the bank and what we receive of the bank, and possibly one of the usage of the excess of capital and cash that we have. We've increased the participation with Aegea. We have this increase of participation. There might be an increase of participation in other companies in the portfolio. At this time we have. We are more cautious.
Let's see what's up ahead. I think it's possible, depending on of having more investment capabilities, the increase of investments or the proceeds for the next year.
Next guest, Lorenzo Giglioli of Santander. Welcome.
Morning, Alfredo. Priscila. Mine is more of a follow-up. Well, you did a great liability management. We want to know if this is over, there might be an efficiency refinancing with a prepayment or did you get to this point of the capital? Have you got to this optimum point of capital? Are you going to focus this extraordinary dividend, as Alfredo said, or given the macroeconomic scenario, will you just have the money in cash? Well, I wanted to get the macro scenario, and we want to understand this scenario.
In terms of liability management, I think that at this moment we are very comfortable with the average deadline that we have and the average cost that we have. We do not see the movements that we do that are justified with the higher debt, even paying the premium for those that have the debentures. It wouldn't justify to increase the deadline with a higher deadline and a lower cost. At this moment, we don't see that the cost of debt, taking into consideration the debentures that are in the market, we don't see a gain that justifies paying a premium for the investors or repurchasing this debt and buying a new debt. In thesis, we have this movement that is practically closed at this moment of liability management. Another question. Yeah, I forgot. About the macro, when you see the uncertainties.
You can, if you can give us a good overview.
I think that there is nothing too different from what is from the market. We work with an interest rate reduction through this year. Depending on the continuity of the war in the Middle East and the impacts in the inflation, eventually this movement will be smaller than what is expected at the beginning of the year. We see a scenario that is better of the hypothesis because the average interest rate of Selic in this year is about the same one as last year. We started last year with an interest rate growing, and it's stable. We see interest rates very similar. From then on, we're gonna depend on the economic scenario, the result of the elections, the impacts of the geopolitics.
There are many uncertainties to do specific affirmations in regards to the scenario of the interest rates. Brazil is at a reasonable position in regards to other movements. We can have important impacts. The idea is to continue with this threshold of economic growth of about 2%. It's not brilliant, but it's possible that it's kept. In a scenario that everything works out in terms of international geopolitics, economic scenario in Brazil and political scenario, that is clearer, we can continue to have a growth that is higher in the 3% range through the next years. At this moment, it's better to work with interest rate 26 still at a threshold of 25 on average and low growth. This is a scenario that we are working, and for us is not a bad scenario for our portfolio.
It is a scenario that allows for growth of the companies, and it allows for control of cost of credit of the bank. That is very good. We see a positive scenario for this portfolio, even not being a brilliant scenario if we consider the potential of the Brazilian economy.
Alfredo, we have another guest, Pedro Baptista, Jefferies. The floor is yours.
Good morning, Priscila, Alfredo. Just a follow-up on the capital allocation theme. With the lower interest rates, leverage concluded, the end of the fiscal inefficiency, and the increase of dividends in Itaú, the return of 6%. Is there a difference of the dividends with the buyback? The expectation is to keep a strategy for the next years.
Thank you, Pedro. We are very disciplined in the capital allocation. We are still studying, the teams of M&A are studying alternatives through these years, but we have this context of higher interest rates because of the public debt. We didn't do any investment in these years, and we opted for the reduction of the debt of the holding, and it was the correct decision. New investments are possible in lower interest rates, real interest rates. A scenario that we have a higher growth of the Brazilian economy with more robust threshold. As we say, we are not a company of private equity. We don't have the obligation of investing, and we don't have a deadline for this investment. We're gonna continue to look at opportunities. It's possible that we're gonna have more opportunities in a more benign scenario, and we will study and finance this investment.
Whether if it's by a cash generation that will increase with the end of the tax inefficiency or if the market is open, we can go back to leveraging the company and increasing the proceeds distribution. This is very premature. It's very difficult to see how the scenario is gonna be for next year. What are the opportunities of investment and the disinvestment itself. We can disinvest totally or partially in one of our invested companies. We can, as I commented, grow the participation in some of the investments that we've done. With Aegea, we've done an additional investment. I think that the idea is the increase of the investment in the portfolio, taking into consideration the cost of opportunity and the allocation of capital in the business. Our cost of capital is 14%.
There is another risk, and these are numbers that you have to look with a lot of ease, and they may have to make sense for our investors.
Alfredo, I think that we've seen all the questions of our invited guests. We have some questions of the audience. I'm gonna select a few. The main theme is proceeds. We had the participation of João dos Anjos, José Tavares, Bernadette Sampaio, asking, the policy of the distribution of dividends for Itaúsa will be kept for 2026. Is there any provision for increasing the proceeds, and is there any possible change given the taxation of the interest of the proceeds?
Well, we're gonna continue to distribute the dividends that we receive from Itaú Unibanco. In a gross manner, disconsidering the interest and the tax over the interest over capital.
This will be the biggest distribution. They are taxed, the other part, came from 15%-17.5%. We're gonna continue with this practice of distributing the gross dividends that we receive from Itaú Unibanco. The additional dividends this year is not likely because we have the tax cost of the holding and as a policy, that would be it. At the end of the year, we'll see if Itaú Unibanco will distribute dividends, additional dividends, as we've done over the last years, distributing what we call the capital excess that the bank has with our management. If we have, we will have additional dividends, and Itaúsa will distribute additional dividends as well. Proceeds. Well, these will be distributed by Itaúsa. It can be in a way of dividend. It can be in repurchasing of shares.
It can be by a capital reduction that wouldn't have the taxation. This is a theme that we will analyze up ahead due to the real understanding over the changes that happened with the tax reform and the new law of dividends. The way that these proceeds that will be distributed, we will discuss them more towards the end of this year. What I don't know if we're gonna do, and it's a discussion and it's a doubt, tax doubt, is if we're going to do the incorporation of the capital with the reserves with a payout. There is some doubt if that distribution of payout would be taxed also with the 2% or not.
For that, we will have to have a better understanding of the lawyers, the jurisprudence, and the understanding of the tax authority to see if that's within that additional aliquot of 10%. The incorporation of reserves is something that we will also analyze in the context of the understanding of the new law that taxes the income above BRL 50,000.
Repurchasing your shares, there is a question of Carlos Eduardo Meireles and Marco Antonio da Silva, José Loca, about the perspective of new subscription of shares. Calling capital.
Over the last years, we had two capital calls to help with the decrease, the reduction of the indebtedness, the policy of reducing the indebtedness. With the tax reform and the end of the fiscal inefficiency, that will generate BRL 8,450 million for a year of excess cash flow. This excess cash flow is enough to face the current schedule that Priscila showed in one of the slides of the amortization of the interest rates of our debt. Taking that into consideration, I think it's very unlikely that we're gonna have to call capital over the next years. But if necessary, we will do so, but I think it's very unlikely.
A lot of the shareholders love it because we did these capital calls in recent years in a private way. Give a discount to purchasing shares, and we had over 90% of the shareholders repurchasing or purchasing shares in this distribution. It's not a scenario that is probable for the next years that we have a need to do an increase of the capital in the holding.
Alfredo, we also had several questions about discount. Santiago Santos wanted to understand about the increase of the results of Itaúsa that are expected with the tax reform. We've discussed that our tax expense is worth BRL 850 million, and if we continue that, this expense will be kept with the PIS and COFINS. Next year, having the end of this fiscal inefficiency, we should see an increase in the same proportion of our results. Here is a liability management question. Marcelo is asking, "Other holdings decided to close their leverage. Is it the case of Itaúsa?" They wanna zero the leverage.
It's not our objective to zero in the leverage, because I agree that a few holdings, and I agree in the general thesis that holdings per se cannot have a high level of leverage. We have 8.5 of indebtedness, we reduced to BRL 3 billion, and we understand that if the position is favorable, we can go back to BRL 8 billion because we have a flow of resources, proceeds that are received that is very solid, very resilient, and they stem from Itaú Unibanco and now two non-financial companies. We have the practice of distributing the dividends of proceeds received by Itaú Unibanco, and we retain the proceeds of the companies that are non-financial.
With the proceeds growing and the end of the tax reform, we generate a capacity of re-leveraging the holding if we have good opportunities and if leverage is a, the good path to do an indebtedness with Itaúsa. Last but not least, we can do a deleverage, calling capital as we've done in two opportunities over the last years. I think it's possible that we will re-leverage if we have good opportunities. If the flow is not enough, then we can call capital giving this discount with the subscription and so on. I think that differently from other holdings, we have proceeds, a flow of proceeds that are recurring that is very solid, that we trust that they will continue to be received by the holding.
It's a position that is very comfortable in regards to our cash flow and how can we use this cash flow to amortize the debt.
Well, questions about Alpargatas. Silvio Siof and Caiuby da Silva. They wanna know what are the plans of Itaúsa for Alpargatas. Are we continuing to take part in the capital, or doing a sale or even increasing the participation?
Well, we had a difficult moment at Alpargatas. We commented over the last years. Management standpoint, we had a few problems. We've had good results in 2026. Our expectation is that the company generates a high cash flow this year. In the national market and the international market. Last year, the company reduced the capital, distributing proceeds of BRL 250 million for the shareholders, and Itaúsa received about a third of that value.
Once again, we're very trusting in the performance of the company. Our investments at Rothy's, which at the beginning was negative, and we did a write-off of part of this investment. Now the company has generated cash flow, has grown, has opened stores. We see the performance of Alpargatas in a positive way for the next years. We are sure that we've went back to the usual performance of the company. We've purchased something at the stock exchange. There is a limit that the new legislation of the Brazilian CVM opened over the next months. We've done specific buying of shares. There is still some to execute of this new limit over the next months. We've executed with a lot of carefulness and within prices that we consider reasonable, this increase in the participation of Alpargatas within this new limit.
It's not very big, and we've increased our participation in the capital of the company.
A question about Itaú, Luiza Araujo and Thiago de Souza, they wanted to know how Itaúsa sees the evolution of the market with the digital banks and how Itaú will be competitive in this scenario.
The bank had some time, 10, 8 years ago, that we suffered with the sudden growth, so to speak, of the FinTechs and many that occupy the market, they wanted to get the clients. I think that we turned the game around with enormous investment in technology. Just so you know, those of you that follow Itaú, now Itaú has, in Brazil, 85,000 employees, and out of those, 18,000 are connected to the technology area. With this big investment, we've recovered. We've worked with the apps.
We transferred our legacy systems to the cloud with more ease of creating the products and apps. Over the next 5-7 years, we come with a journey of reduction of the technological gap in regards to the pure FinTechs. I think that the results have shown that, and I think that this investment in technology will still be kept for some reasonable time in such a way that we can continue to be competitive with these, new banks, these new FinTechs. The banks have had, besides the growth of investment in technology, a strong use of artificial intelligence. This is very relevant. We've used it in credit. A great deal of our models of service are based on models that we will evidently improve with the use of artificial intelligence.
There is an important project of efficiency and reduction of costs through artificial intelligence, through a better activity in the apps. We see the bank very competitive with this new scenario of competition, of the entry of our clients. We removed a big gap in regards to these FinTechs. All throughout these next four or five years, there are still gaps, of course. It's very difficult to manage all of them because Itaú is a multiple bank. We are leaders of all the segments where we work with. Our demand of technology is much higher than the FinTechs that work with specific niches. I see the bank very well-positioned. Itaú is a winner in this scenario of the competition between the new banks, and we are very well-positioned. This is one of the big characteristics of Itaú Unibanco.
We have to be , w e have to know how to be present and not be fearful of facing the challenges of the technology. The bank has an enormous capacity with its culture and the group of executives to face the challenges. We are not fearful of the new technologies. We are always an early adopter of the technologies. The bank, for us, is still a great investment, very well-positioned, and we will continue from the standpoint of our portfolio. This will be the big lever for the portfolio of Itaúsa.
To finish, there are many, many questions, but we already went over time. Perspectives for 2026. Daniel Silva, Patrice Duran, Joel Menendez ask: What is the focus of management in 2026, and the business perspectives of growth for the company for 2026, 2027?
I think we discussed this a lot. We got the strategy right between 2020-2027 with the first investment of NTS, in 2022 when we did the last one at CCR. It was a cycle of investment that was very well received. We found good opportunities. We've grown a very resilient portfolio. The leaders in the sector, brands, resilience, and we went through this recent cycle. We've fared very well with this cycle. Over the last years, we did the deleverage. We didn't stop to look at other opportunities, but with the risk of Brazil, high interest rates, we didn't find anything that is interesting. The future cycles, it remains to be seen how the economy will do, how the policy in Brazil will do, how the geopolitics will fare, the wars, tensions in many places that is reflected in the Brazilian economy.
We're ready for a new investment cycle for some of the investments that we've done that are more mature to do investments in other sectors and companies, and this will depend on the opportunities that will arise. We're very much deleveraged. We can leverage once again if we have good opportunities. As I told you, we're not a company of private equity that will have the obligation of investing in its capital and the shareholders in new opportunities. We don't have the obligation neither of investment or disinvestment. I think that the investments are still good, and they're safe. The companies are growing. Okay, not necessarily we will disinvest. We can leverage once again with a virtuous cycle if the international conditions will generate this opportunity. Let's see the scenario. We do good analyses of the scenario.
We've read the internal and external context, so let's try and bring these investments in a safe way that generate value. Whatever we have, we're gonna distribute to the shareholders. Well, nobody will complain.
Well, Alfredo, I think that we've asked a question. We answered most questions. If your question hasn't been answered, you can get in contact with our team and through our social networks or just send an email to our team. We also wanna know your opinion on Resultados em Foco. Capture the QR code or click on the button below the transmission window, so you can have access to the satisfaction questionnaire. Thank you, Alfredo, for your participation. I think it was great as a contribution, and I think it was a nice conversation with a lot of participation and interaction with our public.
Yes, Priscila, thank you for commanding our, once again, our event. I would like to invite all of you for August. August is almost there. Let's see how we're doing in terms of scenario, international scenarios, local. We're gonna have a better overview of the year, how our companies are performing. I'm very optimistic that with this portfolio, once again, we're gonna have growing results and a performance of our share that is very favorable for our investors.
Thank you. Thank you to all of you that followed us, and see you on the next Resultados em Foco. Thank you.