Good afternoon, ladies and gentlemen. Welcome to MAHLE Metal Leve's video conference to discuss the results for the fourth quarter of 2022. This video conference is being recorded, and the replay can be accessed on the company's website at the investors relations section. The presentation is also available for download. Please be advised that all participants will be only watching the video conference during the presentation, and then we will begin the question-and-answer session when further instructions will be provided. Before proceeding, I take this opportunity to reinforce that the forward-looking statements are based on the beliefs and assumptions of the management of MAHLE Metal Leve and on the current information available to the company. These statements may involve risks and uncertainties given that they relate to future events and therefore depend on circumstances that may or may not occur.
Investors, analysts, and journalists must take into account that events related to macroeconomic environment, the segment, and other factors may cause their results to differ materially from those expressed in the respective forward-looking statements. Present in this video conference are Mr. Nathan John Quye, CFO, Daniel Brasil Alves, Marketing and Corporate Communications Director, and Fábio Peres, Finance Executive Director. I would now like to hand the floor to Nathan Quye, who will begin his presentation. Mr. Quye, you may proceed.
Thank you, Rodrigo. Welcome and good afternoon. Welcome to our call, where we are going to disclose the results of the fourth quarter of 2022. It is a pleasure to present those results to you today. This is the agenda for today. This is very similar to other editions. We will start with the highlights, then we will provide an overall perspective of the market. That is something Daniel is going to show, as well as the net revenues, finance management, CapEx, depreciation, and that will be followed by a Q&A session.
Today's teleconference will present the results we had related to the performance of our company in the fourth quarter of 2022. There is a problem here on the slide. I do not think this is the correct presentation. I apologize. This is the presentation from last year. I apologize. In a few seconds, we are going to share the screen with the presentation for this year. While we wait, I can tell you that overall, this was an amazing year for MAHLE Metal Leve, with sales and very positive financial results, much above those achieved in 2021. This is the best result we have ever had in the history of MAHLE Metal Leve. We are very pleased with those figures.
It was not an easy year, as you are familiar with what happened in the market. The difficulties faced in U.S. have reflected in our operations as well. But we were able to complete 2022 with good results. Okay, now we have the correct slide, and I apologize for this mistake. Our net sales revenue has reached record levels, over BRL 4 billion. We completed the year with BRL 4.2 billion, and the first quarter was also a very good quarter, much higher than the fourth quarter of 2021, 21.8% higher than the same period of last year. This is mainly due to our benefits in the domestic market, in heavy equipment, but also in the export market. In 2022, as well as in 2021, we have had very superior results in the aftermarket, especially in domestic market.
We had a drop in exports in the fourth quarter of 2022. We faced some difficulties in Europe and North America. In South America, we also faced problems in Peru, for example, but Daniel is going to talk more about those issues later. The key indicators that we track are listed in the bottom of the screen. We completed 2022 with an adjusted EBITDA of BRL 845 million. This is again, a record level at MAHLE Metal Leve, and the company is very pleased with this result. As I mentioned, it was not an easy year considering all the macroeconomic conditions, but we were able to end the year with good figures. This is translated as a very similar adjusted EBITDA margin with 20%, very similar to 2021, which was 20.1%.
In other slides, I am going to go deeper into those figures, but right now I am going to turn over to Daniel Brasil, who is going to talk more about the sales results.
Thank you, Nathan. Good afternoon, everyone. It is a pleasure to have you here at MAHLE Metal Leve's teleconference. As Nathan mentioned, we are so proud with the record levels of sales and financial results we achieved. On slide 4, you can see the data for sales and vehicle production in Brazil and Argentina comparing 2022 with 2021. In the upper part of the slide, you see light vehicles. Both Brazil and Argentina combined have completed the year with a sales of 1.1% increase. In Brazil and Argentina, you see that in Argentina the growth was much higher in sales and production, much higher than we expected.
In production specifically, the combination of Brazil and Argentina has led to 8.3% growth, and in Argentina specifically, production grew by 23.5%. You see that production results were better than sales. Because of exports, both from Brazil and Argentina to other countries and to Mexico, we have had an increased production. Mexico, Chile and Colombia are the countries that we export to. You see that it totaled 2.7 million light vehicles that were produced. The bottom chart, you see the data for medium and heavy vehicles. There was a 0.9% growth in sales in Brazil, a drop of 0.6% in Argentina. In combination, that total of 0.7% growth in sales combining both countries. In production, 196,000 more trucks produced. In 2023, there will be a new law to be passed related to emissions. This is why we have had an increased production here in Brazil.
In Argentina, 5.4% growth in production and combining both countries an increased production of 8.8%. The level of sales and production for heavy vehicles is superior to 2019, vis-a-vis 2019. It is above the pre-pandemic levels, but as to light vehicles, we are still below the pre-pandemic levels, but still the sales level is much superior. Now, I would like to talk about our perspectives for 2023. We have the year to date of February, and I am going to briefly share with you the information for year to date until February, both for light vehicles and heavy vehicles, and also our perspectives for 2023. For light vehicles, we expect a growth of 1% of Brazil plus Argentina and a 4% growth in production.
The comparison basis is low because in 2022, we had a slow start in the beginning of the year because we still had COVID cases as well as floodings that took place in the country that also affected production. These figures are superior to 2023, but they are lower than the ones we had for the third and fourth quarter of the year. In heavy vehicles, we have had an increase in sales and a drop in production, and there is a new legislation, as I mentioned, and there is a reduction in production. We are selling the vehicles that are stored that still counted on a technology that was related to the previous legislation. Now light vehicles. According to ANFAVEA, 4.1% for sales and 4.2% expected growth in production.
Our projection for MAHLE combining Brazil and Argentina for sales, we expect 1.5% in sales, 1% increase in production. This is our perspectives for 2023, so that is what we expect for 2023. We expect to sell and to produce at the same levels we have had in 2022. There are some car makers that are now making adjustments to their production. They are stopping their production because of lack of components, but also because of adjustments in inventory. We believe that also there is going to be a decrease in interest rates along the year, and that it tends to increase in the second quarter of the year and in the second half of 2023. As for heavy vehicles expectations for ANFAVEA for Brazil is an 11% drop in sales and increase in production. MAHLE's perspectives is aligned with ANFAVEA's.
The combination of Brazil plus Argentina would indicate a similar perspective, a drop in 10% in sales, and a drop in 21% in production for heavy vehicles. That is affected by the sales of vehicles we have in inventory. I think that the data from March is probably going to be affected by the sales from inventory products, but as of April, there may be a higher drop. Along the year, we expect this evolution finishing with the expected numbers as we are sharing with you. Now, moving to slide number 5. This is the data from vehicle production for North America and Europe. A growth of comparing 2022 to 2021, a 9% increase for light vehicles and 7% in heavy vehicles. In Europe, a drop in production, 1.8% drop in light vehicles, 3.4% drop in heavy vehicles.
This is affected by the war between Ukraine and Russia, and we expect these exports in total to increase. We had a total increase of 3.4% in exports this year. Slide number 6 shows the evolution of net revenues. First chart indicates 2021 vis-a-vis 2022. Starting with the last column, domestic original equipment. There was an increase in sales by 22.2%, minus 2% related to exchange rate effect because of Argentinian pesos . The total volume price effect, 24.2% in original equipment for the domestic market. Superior to the growth in the domestic market, which had grown 8%, both in light vehicles and heavy vehicles. Why did we have increase in net revenues? It was a favorable mix of customers also selling tools to new projects and increased market share.
Those are the three main reasons that have led to a superior increase in net revenues compared to the market as a whole. As for export, there was a 3% increase. Exchange rate effect of -3.7%, volume price effect of 6.7%. In exports, this is in line with what happened in the market. Again, increase in United States, but a decrease in Europe. This is very similar to the figures we see in the market. In the aftermarket for the domestic market, there was a 31.2% increase in the net revenue, and if you deduct a significant exchange rate effect of 22.7%, again related to Argentinian pesos, we've had a volume price effect of 53.9%. This is a pent-up demand and a heated demand and also increase in market share. For aftermarket for the export market, a 7.1% growth, exchange rate effect of -1.3%, so volume price effect 8.4%.
As Nathan mentioned, some countries are still facing problems, but still, we achieved an 8.4% growth in the aftermarket segment for exports. So -8.6% in total for exchange rate effect. Volume price effect 25.4%. In total, 16.8% increase. Again, if you remove the exchange rate effect of 8.6% negative, you would have a growth of 25.4%. In the chart below, you see the net revenue comparing the fourth quarter of 2022 vis-a-vis the fourth quarter of 2021. We had an 18.5% growth in total. Exchange rate impact -14.7%. As Nathan mentioned, this is an excellent result, BRL 4.2 billion in sales of the company this year. Next slide, please. Here you can see the consolidated exports by region. There is a reduction in the market share of Europe from 43.3% in 2021 to 36.5%. Consequently, an increase in other regions.
In Europe, both the light vehicles and heavy vehicles markets were decreased, mainly because of MAHLE Metal Leve's distribution. But we've also seen some adjustments in inventory that took place in the end of the year that reduced sales as well. We have this different distribution now, but both Europe and North America are close to 40% in terms of market share in consolidated exports. Now I'll turn over back to Nathan, and I am open to answer any questions you may have later.
Thank you, Daniel. Now I would like to comment about the gross margin. The cost of sales was very similar when you compare 2022 and 2021. It was just a little bit higher because of what happened in 2022. Increase in raw materials prices, increase inflation in Europe, increased energy costs in North America. But we completed the year with a good figure. In the fourth quarter, it was above the fourth quarter of 2021. Of course, we understand that there is a seasonal aspect to the results of that in December. The fourth quarter, usually, it has lower levels than the third quarter, but we completed 2022 with 26.8%, and this is good.
The first half of the year was difficult, and I think that everyone who worked with raw materials felt the same. Next slide, please. Now let me tell you about the expenses we had in 2022. Let me start with selling and distribution expenses. The absolute figure is much higher than the one for 2021, but most of that is due to the fact that the aftermarket segment had very high values, and of course, this has impacted in the selling and distribution expenses. And this is the reason why the absolute figure was higher in 2022.
In terms of percentage of sales, we had this figure because of the inflationary adjustments we needed to make in Argentina. As to general and administrative expenses, the absolute figure is practically the same as the one for 2021, and there was a significant reduction in the percentage of sales, 2.6% vis-a-vis 3% in 2021. We do not have a lot to say about this particular line. We implement very stringent controls of administrative costs. This is why the figures for 2022 are very similar to 2021. As to technology and product development expenses, as in other quarters of 2022, we see a low number here because of the costs for Germany, and it was a very similar cost to the third quarter. Finally, we have other operating income expenses. This particular line includes two different things. We see differences when you compare 2022 and 2021.
In 2021, we felt the impact of PIS/COFINS taxes, BRL 100 million positive in 2021 because of changes in this tax. In 2022, in the fourth quarter, there was a one-off item that was related to a legal agreement with a minority shareholder in December. These were the two things that happened, but they were one-off items. The level of earnings in terms of gross margin, that is not impacted by these expenses. Now I will turn over to Fábio, who is going to talk more about the financial results.
Good afternoon, everyone. Let me tell you more about the financial results. Let me start with the full year of 2022. BRL 58.7 million in total in net interest income that can be related to interest income on financial investments made in Brazil and Argentina, as well as interest expenses we had on loans and borrowings for working capital. In a mix of both sources, we have a total of BRL 58.7 million. Some of them are related to the recovery of PIS and COFINS taxes. In 2022, again, we totaled BRL 58.7 million, while in 2021 it was BRL 21.9 million. The second part here you see about the effects related to exchange rates and loss on derivatives. BRL 57 million related to exchange rate variation in our accounts payable and receivable. This is the net results of the exchange rate minus the hedge operations. Also foreign exchange contracts.
You see that there is the partial compensation of BRL 18.6 million and BRL 44 million, which are related to hedge and also foreign exchange contracts. As to the net monetary variations, we totaled BRL 23 million, and there are others, total BRL 4.8 million. In total in 2022, you have BRL 9.1 million, while last year, 2021, was very similar, BRL 8.9 million. Now focusing on the fourth quarter, you see the main lines, BRL 24.4 million of net interest income. Last year was BRL 7.9 million in the fourth quarter of 2021. You see that the 2.1% vis-a-vis 4.6% last year in exchange rate. BRL 5.5 million in the fourth quarter of 2022, BRL 7.4 million in the fourth quarter of 2021, and that is for net monetary variation.
Here you see BRL 16.4 million in net finance income in 2022, vis-a-vis BRL 3.4 million positive in the fourth quarter of 2021. There was a significant devaluation in Argentinian pesos, but that is offset by the interest rates obtained in the financial investments. They were basically offset. In the next slide, you see our indebtedness. The first chart to the left shows our net cash position, BRL 405 million in the end of 2022, practically the same as we ended 2021 with BRL 508 million. In 2022, we had BRL 414 million in loans and borrowings, while the previous year, BRL 262 million. We had BRL 246 million of net cash in the end of 2021, BRL 91 million in net cash in the end of 2022.
You see the maturities in short-term BRL 209 million and in the long-term BRL 204 million, and you can see the different maturities along time. In short term, we have BRL 209 million for short term, BRL 204 million in the long term. We have payments to make and also installments of FINAME. The average cost of funding shows 24% allocated to FINAME loans, 67% allocated in NCE and ACC. They are supported in euros. EUR 6.87 for FINAME and ACC, NCE in average, in the weight average, we can reach 4.01% in average costs.
There is also part of NCE that is in reais, that accounts for 7.8%. Also 0.7% from Argentinian [inaudible]. In the next slide, you can see disbursements made with CapEx in 2021 total BRL 80 million. Total depreciation of BRL 102.5 million, which accounts for 78.7% in their ratio. But in 2022, we totaled BRL 98.8 million in CapEx investments and total depreciation totaled BRL 98.2 million. Our investments fully covered the depreciation we had. Percentage over sales is 2.3% in 2022, vis-à-vis 2.2% in 2021. This is aligned with what happened last year. In 2022, we were able to make investments that covered the depreciation we experienced. Now we will move to the question and answer sessions, and all of us will be available to answer any questions you may have. Thank you.
We will now begin the Q&A session for investors and analysts. If you wish to ask a question, please press the Raise Your Hand button. If your question is answered, you may exit the queue by clicking the Lower Hand button. Our first question comes from André Ferreira from Bradesco BBI. You may speak, sir.
Good morning. Thank you for taking my question, and congratulations on your results. The lack of semiconductors has improved, apparently, but in February and March, there were some announcements made by Volkswagen saying that they were interrupting their production. Do you expect the supply chain involving semiconductors to improve over time? We have also seen a drop in exports in aftermarket in the fourth quarter. Could you please talk about that and the reasons for this drop? Thank you.
Good afternoon. This is Daniel. Thank you for your question. As to semiconductors, as you mentioned, this is the third year we have been talking about that already. In addition to that, there was a shortage of semiconductors to some OEMs. But I think we should consider demand as well. I think the word challenging describes it. We have been talking about that since the beginning of the pandemic, and we do not expect 2023 to be any different. As I mentioned, our projection for the full year of 2023, both for productions and sales, we expect that those will be similar levels vis-à-vis 2022. If you consider daily sales in 2022, they started very slowly in the beginning of the year because of floodings and the pandemic, then got better in Q2 and Q3.
In 2023, we expect to see a similar effect. We expect also to see a reduction in interest rates. We expect in March to see better results, 10% better in March than vis-à-vis February for Brazil. This is how we expect to recover that so that at the end of 2023, we will have maybe a 1% growth vis-à-vis 2022, both in production and sales. As to aftermarket exports, as mentioned by Nathan, there have been some problems in neighboring countries that have caused a negative impact on sales. That is another challenge. Did I answer your questions?
Sure.
Our next question comes from Marcelo Malta with JP Morgan. Please go ahead, sir.
Good afternoon. I would like you to comment on this agreement you have made with Filta Oil. Could you give us some background? What happened? Can that be reversed in any way? What should we expect? Is that a done deal, or is any noise expected in this transaction?
Thank you, Marcelo, for your question. Yes, in the fourth quarter, we had an agreement to solve a legal problem that we have had many years ago. This has been disclosed in financial statements in 2022. In the first quarter, as next steps to complete this topic, we are going to implement some actions. But in 2022, these figures were disclosed. I do not know whether that answers your question.
It was clear. Thank you very much.
Let me remind you then if you want to ask a question, just click on the Raise Your Hand button. Please wait while we collect questions. The question and answer sessions is now completed. Now we would like to turn over to Mr. Quye to make the company's closing remarks.
Again, Rodrigo, thank you very much. I would like to thank the MAHLE's team, Fábio, Daniel, and all the team that supports us. It was a very special year for MAHLE Metal Leve with good EBITDA results, with good sales. We have achieved record levels in our history, and it was not easy. The whole MAHLE team has worked very hard to make this happen. So working in all the plans, and I know that this was not easy, but we are very pleased to have reached those results. With that, we, of course, also have a significant level of dividends, the best JCP in our history. We will continue building history at Metal Leve. This is one of the best company in terms of distribution of dividends as well. We are now preparing for 2023. Every month is a different month, and everything is different in this new normal.
Let us see what the year has in store for us. Now we see the situation of banks in the U.S., but we are well prepared with a very good team at MAHLE Metal Leve. I think that we can leave our shareholders with peace of mind. In May, we will bring the results of the first quarter. Thank you very much for attending and for dedicating your time to listen to my words in Portuguese, which is not so good. But thank you for your time, and have a great day.
MAHLE Metal Leve's video conference is adjourned. We would like to thank everyone for their participation and wish you a good day.