Motiva Infraestrutura de Mobilidade S.A. (BVMF:MOTV3)

CCR Day 2019

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Apr 8, 2019

Good morning, everyone, and welcome to another CCR Day. This is our 14th CCR Day, and it is a huge pleasure to have all of you with us today. Thank you very much for your presence and also for your interest in CCR. Today, we have almost 300 participants confirmed and the event started a little bit earlier than usual. So people are still arriving and we have a very busy agenda today, a very productive one, we hope. And we have people connected via webcast, both in Brazil and abroad, following our presentations. Thank you very much. This is a very special CCR Day, even more so than normally, because this is a year in which we celebrate 20 years of existence. And I believe that as the title says, this is the beginning of a new cycle, such as we can see on the screen, new management, governance and compliance. I, particularly in the last 10 years, I have had the privilege to follow the growth and the transformation of this outstanding company, which is CCR, that started in 1999 with 5 highways, as we will be showing during the presentation, and became the leader of the segment in which it operates and very successfully exported this expertise to the segments of urban mobility and airports. During the presentation, we will be showing you what changed from 1999 on in the scenario and how CCR contributed to the development of the regions in which we operate in this period. And our perspective, our interest is to continue to grow and give our contribution and be players in the sustainable development of the social economic environment in which we do our business. But in order to achieve this, we must evolve, we must improve. And this will be the focus of our presentation today besides showing a little bit of what we see as growth opportunities. We will be showing you as well the changes that CCR is implementing and preparing itself for this new leap that we expect will happen. Our agenda today is rather busy and very good. We start with a guest, the Secretary for Development, Planning and Partnership, then the Governor of Sao Paulo, Zontoria. After the break, we will have our management VP explaining the changes in management and implementation that we will be doing in order to prepare ourselves to this phase. Our compliance and governance VP also explaining the changes and implementations and how we are strengthening this area in the company and of course, our CEO, who will be talking about growth opportunities. At the end, we will be closing with 2 renowned law firms, Sebastiano Togao and Marcelo Trindacci, giving you a little bit of color about a subject that has been the focus of the market in the last few months, which are the agreements signed by the company. I would like to highlight that after all the presentations, as much as possible, because Natalia and the governor, they must leave, we will have a Q and A session. So please don't be shy. My experience is that sometimes you don't ask questions. So you should take the opportunity because the executive committee is here. So you can ask them all the questions that you usually ask me. So I hope you'll come back and so that this day may give you a contribution for a better understanding of the company's perspective and what the company is doing. In order to start, we would like to call a video that shows the development of CCR. We create bridges. We believe that the difference between the hurdles and the opportunities is rather small. We transform inspiration into action. We are the CCR group. We make feasible solutions of investments in infrastructure. We operate in sectors of highway concession, urban mobility, airports and services. In highway concession, we are present in 5 Brazilian states. Urban mobility, we operate in Rio de Janeiro, Sao Paulo and Bahia. Airports. Airports, we are present in Minas Gerais, in Ecuador, in Costa Rica and Curacao. And of that, we work in many airports in the United States as well. CCR 20 years transforming people's mobility, innovating. We believe in optimism, in creativity and in the entrepreneurship of our over 20,000 people. We believe that each person's enthusiasm leads to the transformation that we need to carry out. CCR 20 years, new perspectives, our purpose is to transform people's mobility into true experiences to value life, to value time, In art, in sciences, in technology, we look for the inspiration in order to carry out transformations. By means of the CCR Institute, we operate with different strategies in order to engage and to empower young people so that they may have a positive impact on their communities. The CCR Institute connects the participants of the product to the exercise of citizenship to new knowledge in order to disseminate values and knowledge and generate value to the whole of society CCR through different paths, but always the same purpose. We have many different accents, many opportunities, but always with the commitment of transforming the communities where we are present. We seek development. We connect development and knowledge. We multiply innovative strategies. We unify development and quality of life. We seek not only to do things different, but we seek to do things better always. CCR Innovation is what moves us forward. Our first guest has a wide ranging experience in project management, microeconomy and mainly acting with the regulation of transports, technical changes and monitoring of priority projects of the federal government, graduated in Economic Sciences by the Federal University of Londina, a matter of Economics of Santa Catarina and expert in ground transportation by the Polytechnical School of Rio de Janeiro. She was management of the she worked for the NATT, Secretary of the Ministry of Transport, also with the civil household of the presidency and currently she is the Secretary of Planning, Development and Partnerships of the Ministry of Infrastructure, Natalia Marcassa. Good morning, everybody. I know it's very early in the day. Good morning, everyone. It's a great honor for me to be here at the CCR Day. For those who know me and for those who do not know me, I'm a professional of the infrastructure sector. I have been that for about 15 years and I have worked for AMTT for the long career there and I had never addressed you. So thank you so much for inviting me. This is very important for me. So all my background, my is in infrastructure. And specifically in highway concession. I have a wide ranging experience, but it is very similar to the path that was followed by CCR starting with highway concessions. And in the last 15 years, I was part of the construction of regulatory framework, the legal framework and infrastructure and mainly in the highway sector. So I participated, that was part of the construction of some of the contracts that this company ultimately won during the auctions. I would like to thank Leonardo for inviting me, the Minister. And unfortunately for you, the Minister was not able to come and I was lucky enough to replace him. And for those who have not had opportunity to listen to him, people who know him know that he's very enthusiastic and he has lot of he's very energetic and he loves what he does and he has a lot of technical knowledge and the ministry reflects all this technical density, so to say, of Taicir. He set up his ministry with technicians, with technical people in the sector. He changed the command of the companies that are under the umbrella of this ministry. And he gave the guideline that the Ministry of Infrastructure and Transport needed in order to carry out the mission that we have to do that to carry out a whole portfolio in many assets in many models, highway, airport, ports and model. And in order to do that, we need a lot of competent people. And even this way, it's very hard. So the minister did his homework. The first one was to put people that really know their job in the adequate places and the adequate positions. I would like to show you a little bit of this portfolio today and I would like to give an overview and afterwards I would like to answer your questions because I think this is very enriching. I would like to know exactly what you're interested in, in terms of our portfolio. And everything I say today can only raise the price of the shares of CCR. So this has to happen. So we took office with a major challenge coming from something that our minister and the remainder of the team were already working in this project. So it was a very intelligent move on the part of this administration because they kept the right people is the thing that you need the most in this country is resilience because if you give one step forward and you give 3 steps back and in order to do infrastructure, you need to be very resilient. So we came to the 23 auctions. We were able to collect almost BRL6 1,000,000,000 in grants, investments for the next 30 years, about BRL7 1,000,000,000 in models that are airports, airport concessions. It was a big hit. We had new players, new entrants in the sector, such as N as a Spanish company, 100% goodwill of this amount, BRL 2,500,000,000 almost in grant for the auctions of the 5th round. And after the airport, we had the auctions of Port lease terminals and it was on the 20 something of March that we had the first four lease auctions. Last Friday, we had the remainder of these lease terminals. They were 10 lease terminals, mainly with a vocation to fuels and we were able to raise 450 additional €1,000,000 in grants. And on the 28th, we had the Norte Su auction. It's the first in 10 years. So basically, it's the first one ever since the railway mesh was done and it was done by Valeck before and not the agency. So it's practically railways since the federal network was privatized. So it was a very big step ahead because we believe the sector has to change and we want to change or we want to add to the transport matrix and the railway model, we wanted to go from 15% to 30% in the next 5 years. And this is the reason why we have to give great strides in the construction of railways. We had already tried to model this one way or another. And for the first time ever, it was a brownfield, in fact. But for the first time, we had an auction, a very successful one. And we had a premium of 100%. The airport was 1,000 and here it was 100 premium. And everything was ready and you can believe me when I say that we spent the 1st 3 months working like crazy so that we could do this. I think it was more than 25 public civil lawsuits besides many other requests in the legal field. So it's really very difficult to do infrastructure in the country. A little bit about the Ministry Infrastructure here. Now the name is the Ministry of Infrastructure, but basically of what we knew about the last change in 2016, what was added was the transit part, which was not ours. So to the Ministry of Infrastructure, we have the Denatran coming on board with all the attributions and the Contran as well. And in fact, it was a very tough decision because today we have 2.5 times more our on the other hand, we understood that there was the whole synergy with transport and many decisions that are made in Contreras are reflected in the daily routine of transports. So the decision was to bring on board the Denatres to the ministry. And talk a little bit about our other companies, the decision was to have technical people at the head of these entities aligned with the new structure, the new message of the government. So these executives have to understand that the companies are important, but at the end of the day, our objective in 4 years is to denationalize most of them, so that the assets may become interesting. And those can be more attractive and also the one that are not too attractive and that have to liquidate be liquidated, then that they may be well prepared for this liquidation. Now talk about concession. The flow of the structure of concession continues to be the same that you are familiar with coming from the last administration with the PPI maintained. And probably the next meeting of the PPI will happen still in April or early May, the latest, and we will be able to qualify the new project. In the case of the Ministry of Infrastructure, it's already in our portfolio. I will show some assets. It's very important because sometimes questions about that well, I'll go back to that later on. But we were very much questioned at the beginning of our administration, not only the Ministry of Infrastructure, but I believe that when you go to Brasilia, you also do this in other ministries as well. And the question was about the overlapping of between the PPI, Ministry of the Economy and the PIPs of Denationalization and the Ministry of Infrastructure. And I think that the message that you could take is that we are working very much aligned. And our objective is to have good projects. Each one plays a role in this patchwork, which is to have an infrastructure project and then auction it and then regulate it and then supervise it. So our obligation is to define the policy and the guidelines the project as the granting power, the PPI in articulation with the government between the government and the market. The EPL is our arm to structure these projects, and the agencies are there to regulate and to oversee the contract. As much as we can, we have as little overlapping as we can. This is the message that I want to convey to you. This is the flow that you are familiar with. And what is new? And I think you should pay attention is the 30,381 norm, which gives a new term for the analysis of the infrastructure projects. In fact, basically, it is like a statement of the project and what are the main characteristics of the project, 150 days before the invitation to bid and the technical area has 90 days to analyze it. And so we believe that this new norm of the court of accounts bring this better situation. And this is the most relevant change visavis what we had last year. EPL, I wanted to bring this slide about the EPL because many people ask about the EPL and variations of and the position of the Ministry of Infrastructure is that we have the intention of denationalize and liquidate whatever we don't need the presence of the state in and where we don't need to operate this infrastructure. But this company allows us to look at the long term and gives us the strength to structure the project. So, EPO is the only one in the Ministry of Infrastructure that is there being evaluated financing. What is new in terms of financing? I think we already had some idea. EPO has already changed this characteristic of financing subsidized interest rates. And I believe that we are all aligned. And we all believe that this is no longer acceptable for the concessions sector. And the first idea of what is about to come was given with the letter regarding not to sue the support finance support letter. The finance is already lower 40%. It could get to up to 50% in the cases where the player cannot access the constitutional funds because in the project you still were able to access Centro AES, Jeff Chiyo, etcetera important work that we are doing in the Ministry of Infrastructure, too. And let's link this with the economy so that we have this as fast as possible, which is the review of the 2,431, the law that regulate the issue of the ventures. We understand that we have a huge opportunity to advance so that we are able to structure more and more is a whole series of improvements that we want to implement and we're already working on our proposal. And it is very important to listen to the market and when we sign the proposal, we will be opening a 1 on 1 with the PPI to listen about the debentures issue. We have already had the first hearing with the law firms. It was more general. So we are working on that. On the other hand, we already have now on 16th 17th April together with the PPI, we will be able to listen to you about the new round of airports. The PMI has already been published for the modeling of the 6th round of airports and we want to listen to you about what can be improved visavis the last round. There was a doubt at the beginning because when we changed to the block option, our idea is to continue to do this in blocks. But we want to listen to the market and learn how we can improve in the airport sector. And over the first half year, we will be doing this for the other models as well. A little bit of our planning activities. The Ministry of Infrastructure, we were able to link the models of the Ministry of Infrastructure in 2016 when we brought to the Ministry Civil Aviation and Ports. And before that, it was the Ground Transportation Ministry and Aviation was another department of the presidency of the Republic. And it was very difficult to explain to any foreigner, well, okay, we are the Ministry of Transport, but the ports are there and the aviation is here. And it was very difficult for people to understand. So this link between airports and ports and highways and railways in 2016, putting them together was a very good thing. And our mission is to integrate this ministry. We to deliver in 4 years a fully integrated ministry. And this is the main thing that we have to do and we have to do this by means of integrated planning today, although it has sports inside the ministry. And in the last 2 years, 2.5 years, we still have new integrated logistics plan. We have 2 separate plans, logistics and ports. So it's very important for us to integrate these models and the pan, the aviation one is separate. So we have airports and we don't have the access. We have many different airport terminals advancing into some lease terminals with some locations that we are not sure whether the cargo will get there or not. So you really have to integrate everything in order to achieve all that. The one before last, our portfolio. I will come back to the slide afterwards, but what we have for the next 4 years is the following. We have BRL140 1,000,000,000 initially in the portfolio because the last project we have not started to model yet. So we don't have the investments here. So it is much bigger than EUR140 1,000,000,000. EUR140 1,000,000,000 is what is already modeled. In highways, our portfolio has almost 15,000 kilometers 65,000,000,000 estimated ports. We are modeling 29 terminals as the 1st dockers company. It has already been approved for qualification of the PPI and very soon, we will have the decree of denationalization of the CODES, which is the company in Espiritu Santo, the first one that we will be modeling. And the BNDES has already launched invitation to bid for this contract. So the DOCS is the first one. It's not going to be the only one. Our ideas in 4 years is to denaturalize all of them. We are studying the models. In principle, the model chosen will be a concession of Asepizza. And the company adocus is the model that we started the least about internationalization. And in the DOCS companies, it will be very interesting to model this besides many lease terminals. So these are the ones that we have already mapped, but certainly, we will have more on board railways. In the period, we will be carrying out studies as new concessions or renewal of the existing network of about BRL67 1,000,000,000 in investment. And I have not placed the grant here yet. And the estimate for the construction and the brownfield adaptation of new concessions is of 2,100 kilometers. And this is very big because we are also dealing with the renovation of the existing ones for an additional 30 years. And we have the 6th round of airports as well. We have already started to model with an estimate of 5,000,000,000 in investments in the 6th round. We are talking about 22 airports divided into 3 blocks. Now I will go back to the previous slide because we can talk about this project in detail. Okay. So the 6th round. Well, we still have 44 airports that are being managed by Infraerdo. The 6th round provides for the modeling of 22 airports divided into 3 blocks. We have the North Block, which has Manaus as the anchor, the center, Goianyue is the anchor and the South, Curitiba is the anchor. So our forecast for modeling is still within this year. We carry out studies in order for us to, by the end of the year, have this already concluded. And next year, starting the public hearing in the court of accounts so that we have the auction by the end of 2020. For the 4 years, we want to end with the 7th round as well and which we intend to do by 2022. The 7th involves the last 22 airports, Centre Du Monde and Congolese will be in the 7th round, be included in the 7th round. Highways going into detail about the project. In our portfolio for this year, we intend to have 3.64, 365 already in the hands of the court of accounts and the BR 1 of Santa Catarina for the next year. We have a very busy agenda of highway concessions bringing to the auctions, Nava Dutra, for instance. And remember, everything that I see here has to cause an increase in the price of the shares of CCR. So the Nava Dutra auction, the stretch that is considered as Consent and CRT 153, besides finishing the modeling of the highways that are integrated in Parana and that we want to grant in 2021 when the contract fire, they expire in November 2021 in Parana. And we are not going to delegate this again. So they are going to be federal concessions, and we intend to carry out the auction in 2021. Besides, we have already contracted studies of an additional 5,700 kilometers of highway so that we may have 21 and 22 portfolios in line. Railways, we had the auction of North Sur. This year, we'll publish the call for Fial, West and East integration, and we are working for that. Also, we are working in modeling Ferroglum. I confess that modeling does face some challenges, especially the financing of this project. So we have had a public hearing, but before sending it to the Court of Accounts, we are making the possible adjustments to ensure the financing of the project because this is a greenfield one. It will take 7 years, as we estimated, to have revenue. And we're creating some innovations in the process exactly to allow us to have the financing because it relates to regulatory assets. And this is a good question for you in a few minutes. And in addition to the concessions of railways that are new ones, another interesting topic here are the renewals and the Polista network. Well, we did have the concession of Nautezu. Romo was took the auction. Also, the Polista network is up for renewal. The Court of Accounts issued a report right after the auction of Natura, North and South. It's 170 pages, this report. Although there are several considerations there and recommendations, What was important is that they did not question anything regarding the regulations. They questioned amounts, but the regulatory part of 3 3,448, the possibility of regulations. There were no questions about that. And this is great knowledge and great advancement for us to move forward in the highway concessions renewals. In terms of terminals, we are still modeling. There are several lease terminals, both for fuel as well as greenfield. We will also have 2 or 3 in greenfield to see this year. We have already started studying other possibilities, and we want to put labor up to concession for next year. We are studying 7 terminals in Parana Agua so that we have a portfolio for 2020 and 2021. And also the DOCOS companies that will be a great challenge for us in the port area. And I have talked already about airports. Now to conclude, there are a few challenges that we face. And for highways, higher amounts of grants or lower tariffs. And so for some contracts, we will be turning that key. This is already a decision made. We are also considering for highways the possibility of having a dynamic tariff, which is something that here in Sao Paulo's contracts we already have, which is when you duplicate when you duplicate that, you have a gain in a tariff. So you have a tariff for a single lane and for a duplicated lane. We believe duplicate lane. We believe this is an interesting incentive for this industry. Also, there is an increase of the toll plaza in that duplication year. But on the other hand, the users also understand that delivery and that's why they're paying more. Also, we have liabilities and bottlenecks. We need to say that we do have problems with the rounds made of concessions, both for highways as well as airports. In 2014, The Ministry of Infrastructure is addressing those issues, and it's very important for us to clean that out, take that out of our portfolio. Just as important it is for us, it is important for the concessionaires and also for the regulatory framework as well, both for highways as well as airports, because these assets do lock investments because they're not moving on. We do have financing related to them. That's not good for the image of the concessionaires that are operating in those areas. So in order to address those topics, we need to work. So we have federal funds for infrastructure. We have 2 of them, 1 from the Marine and the other one from FENAC. And we believe that we will have to forward with the debentures issuing that discussion of guarantees. We're starting to study that. And the capital market, because we do have a portfolio of €40,000,000,000 in investments and we understand that no one will have a corporate guarantee for €140,000,000,000 So the capital market for us will be very important for us in this next 4 years of our project portfolio. This is what I had to bring to you, and I am Well, now we will open the floor for Q and A. We have time for 1 or 2 questions. Natalia, thank you very This is Ricardo Alves from Morgan Stanley. A quick question. You just mentioned the discussion tariff in the new auctions for highways or tariffs or grants or tolls in the discussions. And I would like to understand better why you have that discussion among yourselves. But is there a perception that maybe auctioned assets auctioned for a long time, maybe. Dutra is a good example. Do you have you already have mature assets that have performed? And do you have an idea about how these auctions will be made and maybe new auctions, 364. Do you have a different idea for those? Or are these more complex talks? Well, actually, the discussion now is about to each assets we have to fit the regulation. I mean, we understand for more mature assets that we already have traffic and we know them. Novadutra, for instance, and less investments to be made. Although these are large investments, we also have a larger revenue. We understand that a higher grant value model is applies for assets such as 364, 365. It's already in the court of accounts. It's a lower tariff, the model of the integration South Highway. We intend to maintain as it is. We do not want to rediscuss it from scratch. So for us, it's a matter of which contract, which project applies each one of these concessions. So it's now from now on, several projects will have a higher current value, but not all of them. I am Nelson Lebang. Looking at the pipeline you brought us, I realize that there are many my that's under my that's under my impression only, but I realize that is not much for Sao Paulo. And this is the state that has the largest contribution to the federal administration and ends up lending money at a low cost that is subsidizing the concessionaires to build in other states. And my question is, is this because Sao Paulo is a rich state and it doesn't need the money? Is that the reason? Or are there political reasons to invest in other states and less in Sao Paulo? I believe, that's my belief, that looking at your pipeline, Sao Paulo is like on the back stage. It's like in the second tier. And I should say that I am not originally from Sao Paulo. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] I am from Sao Paulo, yes. Thank you. That's my question. Thank you for your question, Nelson. Well, actually, maybe you didn't see it much here because highways, concessions in Sao Paulo have already been auctioned. We have Nava Dutra, Fenugias and Regis Betancur that have been awarded to Sao Paulo already. We already have concessions. We have ongoing contracts for 20 to 15 15 to 20 years, but maybe it's not there on the details. But for other modes, for instance, we do have concessions and privatizations by the end of the government. We start studying that very carefully, and that's going to be a technical study. But yes, the Port of Santos and Congonhas Airport, they deserve our attention, and they will take longer because of the complexity and the valuation of these assets because probably we'll leave them for last because usually the less attractive assets end up being at the end. And that's why we want to keep them for the end as well. That's why we have Santos Dumont and Congonhas Airport for less because we'll have also important assets at the end with the lower imported assets. But yes, Sao Paulo is in our schedule. Very well. Thank you very much, Natalia, for being here with us. Thank you. Before we turn to our next guest, I would like to remind you that last year we got the auction of CCR Via Sur, En Rio Grande do Sur. And I have a video to show a little bit more about this project. February of 2019 marks the entry of the CCR Group in a new Brazilian state, Rio Grande do Sul by the concessionary CCR VSO. Over 4 73 kilometers of highways will be managed. And 4 highways, BR 290, a freeway between Porto Alegre and Ozzoria, BR101 between Ozzoria and Turis, BR 448 between Porto Alegre and Sapo Calle do Sul and BR 386 between Canoas and Carazin. We will have over 30 cities in the south met by these highways. These highways have a crucial role in people transportation as well as the transportation of industrial and agricultural products in the state. It will connect the capital to the beach, posturing, terrorism, and also it will connect Puerto Alegre to the northwest region of the state, therefore, flowing more products and generating more wealth. We started operations in February of 2019. And in August, the concession area will start working in the other highways, an operation of over 9 operating bases and also with the support to our users. This is the CCR Group stressing its commitment to the development of the country's infrastructure, taking to Rio Grande do so its excellence in highway operations, a know how built in over 20 years of managing the main highways in Brazil during the concession. BRL 5,000,000,000 will be invested in improvement works and these investments will bring more comfort, safety and flow to traffic. So driving the regional economy to value the local labor, a new development cycle, we aim not only doing it differently, we think doing it better always. Well, I'll now bring to the floor our CEO, Leonardo Viana. Good morning everyone. Actually, the governor is almost here. He sent a message. He is on his way, so he should take a few minutes. So I will start with my presentation. And when the governor arrives, will we stop? Because he already has his tight schedule, and he will leave here to open open the Campobello Station on Line 5. This was not planned, right? Very well. As Marco has said himself, the CCR Day, this is our 14th CCR Day. And actually, let's move in back. Can anyone help me? There you are. Okay. So the governor just arrived. I apologize for improvising, but since he is running on a tight schedule, let's have him now and let's hear his presentation. He has just arrived and he's just coming to the room. Think this guest doesn't need any introduction, right? In addition to being an entrepreneur journalist and having founded the Groupe Doria and Didi Group, which is a group of entrepreneurs that are greatly representative in Latin America. He also has been the mayor of the city, and he was elected Governor in 2018. Our timing Well, once again, I would like to take this opportunity to thank you all very much for being here. We are 2 50 here in this room. We have 80 other people with us via webcast. And part of this group is out of Brazil, is out of the country. So it's very nice to see that so many people are interested in this company. Good morning, everyone. In addition to welcome you all, I would like to thank Mr. Leonardo Villana, CEO of CCR, that has just received me here and Natalia Marcaso, Secretary of Planning and Infrastructure Ministry. Thank you for being here. Natalia Alexandre Bautier, Secretary of Metropolitan Transportation Eduardo de Toledo, VP of the CCR Group Pedro Suter, VP of the Compliance Officer of CCR Group and all of you that represent the top management of CCR and guests here this morning in this hotel in Sao Paulo. I would like to start by showing you a 4 minute video that summarizes the state of Sao Paulo government, which is a liberal administration focused on the free initiative that supports the private initiative and private activity and does acknowledge its value. Nothing will be more transformative than the private sector evolving, growing, developing itself, generating jobs, income and helping Sao Paulo and Brazil to grow. This video does reflect what we feel both for national investors as well as international investors. So I would like to invite you all to watch this 4 minute video with me. Brazil. Here is Sao Paulo. We are more than a Brazilian state. We are a nation state, A state that works. The 2nd largest economy of South America with a 640 7,000,000,000 gross domestic product, covering an area of more than 200,000 square kilometers. We are global leaders in the production of sugar, ethanol and orange juice. We have a market of more than 45,000,000 people from every part of the world. Sao Paulo trains and exports the most qualified workforce in Brazil. Sao Paulo is the 4th largest consumer market in Latin America. Sao Paulo is Brazil's largest economy. Over half of Sao Paulo's $58,000,000,000 in exports are concentrating in food, transport and capital equipment. Sao Paulo's infrastructure is also impressive, boasting 2 of Brazil's busiest airports, with more than 50,000,000 passengers every year. We have the largest port in Latin America, in Santos, transporting 130,000,000 tons per year, and also 18 of the 20 best highways in Brazil. Science, technology and innovation also have their place in Sao Paulo. We invest heavily in research, more than $205,000,000 Sao Paulo also hosts a world class science and technology institute, representing investments of over $200,000,000 As a result of this initiative, incubators and tech parks have spread throughout the state, fostering economic and social development. We now have the best HDI of Brazil and the best public safety index in the country, comparable to international indexes. Opportunities are back with projects involving many of our landmarks and strategic locations in various sectors. The best moment to believe in San Paulo is here and now. Pleased to meet you. We are the state of San and we are ready for business. Very well. This is a feeling that we have. Leonardo, about Sao Paulo, a clear and objective view of a liberal administration that does believe in the market. And I personally understand as being the governor of Sao Paulo that there is no other way to bring growth to Brazil other than by having free initiative. The state has to have a regulating of function of de bureaucratizing purpose, making it easy for capital to come in and also the private management of assets that should be in private hands as well. And that's what we are doing in Sao Paulo. I would like to take this opportunity since we're talking about CCR. Leonardo, you and all the management of CCR that are here, our decision to move forward in partnerships is materialized, and this is a decision of the government. The CECIARO Group has several highways under its management here in the state of Sao Paulo. And as you have seen in the video, 18 of the 20 best highways of Brazil are in Sao Paulo, and we expect that within 3 years. 20 out of these 20 best roads of the country are here in Sao Paulo, and that other administrations also can produce this model in highways, waterways, railways, ports, airports. We do not have an individualized view of Brazil that Sao Paulo is doing well and maybe the rest of the country could go well. But we want that other states in Brazil have this just as innovative initiatives valuing the private initiative. If Sao Paulo goes well, Brazil goes well. And if Sao Paulo goes well, it will be a role model for the country. I would like to remind you all, the system Ayangueira, Banderantes, Castello Branco, Raposotavares and also some metro lines, 7 and gold lines and all of that in highways as well as in subways, they will move forward. In the future, we'll no longer have construction works at a halt in Sao Paulo. This is my instruction to Secretary Alexandre Baudier, who is here, Secretary of Metropolitan Transportation and former Cities Minister also Joao Ottaviano, Secretary of Transportation and Logistics and Secretary Enrique Merellis, former Ministry of Finance in Sao Paulo, will no longer have construction works that are not moving forward. We'll resume all of the construction works with private funds, with modelings established by our government, buildings and constructions and PPPs and privatizations. About highways, I can say it again that all contracts that are due in 2022 will be renewed. This is a government's decision. The legislation establishes that possibility, and we will take it. This makes all the process much easier. And also, it brings the concessionaires' experiences that add up years of positive experiences. Then we can say that because we have 18 out of the 20 better highways in the country that they keep on working in the right direction. The government of Sao Paulo does not want to make money with grants, but it also wants to improve the quality of infrastructure in our state. This is the fastest and most objective way of serving the population, the productive sector, bringing down logistics costs and also placing Sao Paulo in the 21st century. We have other ways of raising funds for the public treasury. And the concessions, the fastest and most objective and pragmatic and right way is to renewal the concessions. Of course, we are going to negotiate each one of them so that we have a balance and the advantages for both parties and that they may be implemented very quickly and efficiently with the state of the art technology from the infrastructure viewpoint. And we will also make strides in other programs of privatization, as you saw on the video, the PTT Parana Waterway in the stretch that is within Parana the Sao Paulo State. We are talking with neighboring states so that they may adopt the same modeling of concession for the Piede Parana waterway, which is very healthy, very good. And supplement this for cargo transportation and also tourism passenger transportation. The 23 Regional airports of Sao Paulo State will be considered to the private sector, no exception. The Sao Paulo Diasp, which is the Aviation Department, we invited a former CEO and we having been the President of Infraeru, we invited him for the privatization program of all the airports and we also prepared the opportunity for the use of the airport minister because it would be useless to have airport just to have birds landing. This is not valuable for the private sector because you need regular lines. And now we will have you saw 2 weeks ago, Azul was the 1st airline to announce the use of 6 airports of the 23 regional ones. And this week, we will have GO next week. We will have TAM and the other week, Pasareto. And over the 4 weeks, the definition of Avianca coming from whatever may be possible in terms of the market decision. And that will also spur the regional line. So this is part of an agreement that we signed with the Brazilian Association of Airlines with the reduction. And I would like to say the courageous decision to reduce the amount of the ICMS over fuel air like fuel from 25% to 12%. So this is not a fiscal war. I'm totally against the fiscal war. We are just bringing to the same level the tax because the biggest state have the highest fuel cost in the country and this meant a reduction of lines and the airlines did not fill in their tanks in Sao Paulo, they did that in Rio, in Belo Horizonte or in other destinations. So we evaluated this by means of the planning secretariat and we made this decision and we announced it as a counterpart negotiated with the airlines. We established that as of June 1st, we will have 490 new flights per week in Sao Paulo. Flights getting to Sao Paulo, landing in Sao Paulo and the hinterland of Sao Paulo and bringing about a very strong incentive to tourism and to cargo transport or more added value cargo. And as a consequence, the use of airport that will be granted to the private sector. This is planning. This is the correct view in the medium and the long term and it's very structured. These are not isolated actions. Our administration has the good practice of doing everything jointly and this is why the meetings of our Secretariat are done together. Everybody knows what the government is doing and everybody can cooperate around the good ideas in education, in housing and transport, infrastructure, culture, sports, leisure, public safety and all sectors converge within a dynamic that I learned in the private sector and that we are putting practice in the public sector such as we did in the city of Sao Paulo during 15 months. And in a short while, when we leave here, we will be inaugurated at Campobello subway station, increasing the Line 5 that is a very important line that will be serving over 300,000 people potentially and with the potential of growing further in this view of a growth model, which is based on the market more liberal, less state, more private. And this is how I was Governor of Sao Paulo. And it is not easy to be elected in 2 years' time. I'm not a politician. I did not have a political career. I came from the private sector and I built my career with work, a lot of work. I didn't get any inheritance from my parents. I received just a good example of honesty. And in fact, I received some debt and I was able to pay back their debt. And my parents gave me this example of decency and of honesty. And I started working at 13 and at 61. I'm Governor of Sao Paulo State. And with a very good team, I was able to have a very good very big success in private initiative and as well as in the government. I have the possibility, I have the time, I have my own assets and I do not receive any salary that is to say whatever I receive, I donate. I do this as I did as Mayor. I donate this to charities and this encourages other people to make donations. I do not use a government car. I do not use government funds for traveling. And I do this with my personal funds. And as my life allows me to give this kind of contribution, I do this. And more than that, I am able to bring very skilled people around me and even our adversaries in a democratic regime, of course, you have people who are in power and those who are against you. And adversaries also agree that we have set up a very good team, and there are some people that say that our team is like a ministry and Jean Octavian, one of our Secretary of Transport and Logistics is just arriving here in this auditorium. So we have 220 privatizing projects, that is to say denationalizing projects along the same lines that we did in the city of Sao Paulo. Now under the responsibility of Good Bruno Corvos, Sao Paulo was the 1st city in Sao Paulo to have a denationalization program. No other Brazilian city has ever had a strong denationalization program. And we did that in Sao Paulo, and Bruno is taking this ahead, privatizing the Pacambu Stadium and the parks starting with Iberapuera Park and an additional 5 parks. We are talking about 2 projects that are being considered already and will be implemented in the next 2 months. And so within this year, privatization of the NMB Hub and the funerary system, cemeteries and funerary services, burial services and other related areas and bus stations of Sao Paulo City will all be privatized considering their value and the construction potential. And the Le Chien de Bauji is doing this with the subway stations and the CPTM stations and other initiatives in denationalization. And we brought this policy to the state under strides, consistent strides and complying with the laws, but accelerating such as we like to do. And finally, I would like to say or leave a message to you, a message of optimism and of attention regarding the federal government and the Social Security Reform. As you know, I'm a member of the PSDB. I have been so since 2,001 as an entrepreneur, I understood that as a citizen, I should have political participation in the debate about Brazil. So I have not joined or come on board just to be elected. No, I have been a member for so many years and I only became a candidate 15 years after I joined the PSDB. I am the son of Northeastern people. I am Brazilian above all. And I have in my mind that the government that is elected has to work and we have to help. You don't need any ideologies or parties to be aligned because you have to be aligned with Brazil all the measures, all the initiatives of the Bolsonaro administration that are good for Brazil. Sao Paulo will be supporting and the government will be supporting him. There is nothing that could go against that. There is no need for anything in exchange. It is up to Sao Paulo to ask for whatever is necessary for education, for public safety, for health and mainly in the social arena, not establish this as a currency in order to support the good initiatives of Bolsonaro starting with the Social Security Reform. This is fundamental for Brazil, All of you in the production sector, in the financial sector, all of you investors who have consolidated heavy investments in infrastructure, I say support the Social Security Reform. Don't be silent about it. Just don't support it. You have to manifest. Be vocal about it. Do this for your children. Do for the country that you have adopted, not because you were born here, but because or maybe because you chose to live here. The silence of Brazil brings about a vacuum, a void. You saw how the opposition parties treated Minister Paulo Gueches. That is not a democratic debate. I believe in democracy. I believe in diversity. I believe in contradictions because this makes democracy weak. But screaming and being intimidated, no, I'm against it. The lack of manifestation of the private sector in initiatives, in debates and in meetings, in phone calls establishes a void. And this void is filled by these people who do not want the good of Brazil and who can only ask for free lula, free lula. I don't want a free lula. I want Brazil free from bad politicians. I want Brazil free from totalitarian rulers. And we have to make our joint efforts because if it passes the Social Security Reform, Brazil will change and change after the second half of this year, not only because of a fiscal policy that will give us savings of BRL 800,000,000 to BRL 1,000,000,000,000. It will fiscally solve the problem of the states. It will solve the problem of municipalities and above all the problem of Brazilians who want a job. Almost 13,000,000 Brazilians are unemployed. They are in the streets and many of them are hungry because they do not have an income opportunity. And besides, we have about 7,000,000 of people who are unemployed or underemployed with less than 500 warehouse and they have barely survived. Over 20,000,000 Brazilian who live today in suffering, in need and the reform of the Social Security will be catering to those people mainly. And we must be aware of the fact that this needs a collective effort. It's not an effort on the part of senators and deputies of Minister Paulo Quedes or the government of Reiro Bolsonaro. We Brazilians, we are responsible. We are accountable. Call your friend. Call the member of the parliament you voted for. Call your deputy. Call your senator. Send a WhatsApp, send your message and put it on your Instagram, ask and demand that as Brazilians they give the necessary support to the Social Security Reform, silence will be to blame due to those who are against Brazil. And we do not have one single good memory of the 13 years where we have in which we had populist and totalitarian government that had all this corruption in Brazil and 1,000,000,000 of reals were involved and starting with Petrobras. And at the head of the presidency, we had the beginning of all that. Do you want liars? Do you want these false people offering false hopes to those who are needy? Those who only have unemployment as a chance, those who have hunger as a chance. So put in action your individual capacity, your collective capacities for Brazil. This is what will bring about hope and will bring about solutions. And as of the second half, after the reform of the Social Security approves, then we will have we'll tackle the tax system in Brazil and then the gate will be open for new investments in Brazil, mainly in the sector that you all represent. So these are the words I want to leave with you. We apologize. The governor has to leave that he will be inaugurating the station that is by the way operated by CCR. Okay. Now let's open the let's have the official opening of our event, CCR. We will have now Leonardo Feeney. Good morning once again. Well, now I know how to operate the slide device here. Okay. Once again, thank you very much for being here. And it's a great pleasure to be in the 14th CCR Day. And as Marco said at the beginning of the presentation, this is a very special CCR Day because we are celebrating today or this year 20 years since the inception of the CCR company or the CCR Group. So this is a very important date for all of us. I think the little core, the short course that I took during the intervention, the coffee break, it's not really working as far as the slide changing device is concerned. Okay. It's always very good to remember the definition of our business premises to make feasible solutions of investments and services and infrastructure contributing to the social, economic and environmental development of the regions where we operate. So this is our definition and what we seek. As we are talking about 20 years of this group, I think we should go back to 1999 and make a few comparisons here to our current reality. The paved road network in 1,000. We do not have any concrete data dating back to 2020. And in these 18 years, only 213,000, a very small difference visavis201. The vehicle fleet in Brazil practically doubled during the same period than highway concessions in 1999. We had 29 concession contracts for highways, almost 6,000 kilometers and in 2018, 61 concessionaries, 20,000 kilometers of highways airports. During the same period, we had a growth of 12 from 12,000,000 to 20,000,000 passengers per year. And the subway in 1999, we had 49 kilometers of subways with 2,500,000 passengers per day. And in 2017, we have almost 100 kilometers of rails or subway rails with 4,300,000 passengers. And these figures show us that we still have a long way to go. The infrastructure needs in Brazil are huge. And if we compare to other countries, we lag behind totally. And CCR in 1999 when it was created, we had 5 different businesses and the revenues were BRL1.9 billion. These were the first five contracts that we signed and that helped create CCR. Paunch, Novaduta, Rodunort, Chautobay, and Via Guez. This is was the beginning of our company. The next year no, in 2019, this is our reality. We are talking about 26 businesses, 11 highway concessions, 6 urban mobility contracts, 6 urban mobility projects, 6 airports, 5 concessions and 1 service company and 4 service companies in the group, including Sand, which is our company that has to do with fiber optics. And our revenues went up to practically BRL 11 1,000,000,000 in 2018. The timeline shows that as of 2,002, when Cichar had its IPO and created, I believe some of you remember that in 2002, the company created the Crecer project aiming at this growth cycle that we were foreseeing. And every single year, we had growth events in the company by means of auctions or bidding processes or acquisitions or maybe addendums to contracts, already existing contracts. So this is a very relevant history and that evidences the success of this decision of seeking growth in an organized fashion. In these 20 years, what was our contribution to society? Undoubtedly, the most relevant item is the number of lives that we saved in our highways. And the chart that you can see shows the evolution of that. As of 1996, with Dutra, Dutra had a number of fatal casualties of over 600 casualties or fatal casualties per year. And in 'nineteen, when we took over $520,000,000 in 2018, we have a figure that is still too high. We are not satisfied and we are not comfortable with this number. But it shows the drastic reduction because of all the measures that were put in place in the operation and safety, and we got to 122 fatal casualties in per year. And the same retro, so to say, we see in all our concessions. The next chart shows this more clearly. In each one of the highways, the reduction between the 1st year of concession and 2018. Dutra, 76%. Via Lagos, It was totally different from the previous practice. That is to say no debt whatsoever, no fatal casualties in 20 18. There were serious problems in this highway because it didn't have the division between the lanes. And when we created it, there were no fatal casualties. Autoba, VOS 69%, Autoba 50%. And you can see that the reduction is very significant. In my view, this is one of the biggest legacies of the concession program. And we did the math of the reduction between the 1st year of concession and 2018, 711 lives saved per year multiplied by the number of years. And if we expand this to all the other concessions in Brazil, this figure means 1,000 and 1,000 of lives that were saved during this period. So this is one of the most important legacies that CCR is leaving to our society. Still talking about our contribution to society, I think we should highlight the amount of our investment. We are saying that in 99 up to 2018, CCR invested BRL45 1,000,000,000. In the last 5 years, the average was higher than BRL4 1,000,000,000 per year. This is a very significant figure. And just comparing 2018, BRL2.9 billion in investments. CCR alone invested over 10% of all that the union invested in infrastructure just for comparison purposes, and these are very relevant figures. And still talking about contribution to society, I talked about the BRL44 1,000,000 in taxes collected BRL21 billion restated. Everything here is restated for 2018. Only in taxes, BRL 21,000,000,000 in grant BRL 12,000,000,000. What we are seeing is something around BRL33 1,000,000,000 in cash money that was paid to federal, state and municipal administrations. So I think this should be highlighted. Besides, we also had BRL43 1,000,000,000 in administrative expenses and operating expenses. And the bulk of that is labor, salaries, our associates, our people, we have a headcount of over 15,000 direct employees and something around 45,000 who are indirect. So what you have there, BRL 43,000,000,000 means payment of social benefit and guarantee fund, INSS and also the suppliers or the service people who work for CCR and that in their turn, they pay taxes and they generate jobs. So we consider these figures as quite relevant. And very often, people don't even look at these figures, but we have to see what we are generating in terms of benefits to society. And here's some other relevant data about our operation. CCR has over 3,700 kilometers of highways under management, over 1,800,000 passengers in our 112 kilometers of rails. And CCR today is undoubtedly the biggest operator of subways in Brazil, bigger than the subway of Sao Paulo itself operates lines subway lines. I'm not talking about the metropolitan trains. It operates 57, 58 kilometers and we already have 112 kilometers of reels operated by us. Our airport per year, we have over 22,000,000 passengers, over 2,200,000 vehicles per day in our highways. The service opportunities are over BRL 1 billion. And our company, SAN, looks after almost 5 1,000 fiber optics kilometers. So these are very relevant data and they show our capacity and the size of CCR. And as of now, in the present well, we are looking back and we are telling you what was our contribution so far, what has been our role in society and the size of the company. And from now on, what we want to show is how we are structuring ourselves and preparing ourselves in order to cope with the new challenges. So we are going to break for coffee now. And then Eduardo Toledo and Pedro Suttner will be making presentations. I will come back, and then we will talk about what we see in terms of our growth actions from now on. Thank you very much. So we'll now break for 20 minutes, and we'll be back for the second part of our event. And we'll talk more about our future in terms of opportunities as well as measures new measures by CCS to face the future challenges. Thank you. So let's start the second part of our event. I would like to bring to the floor our Corporate Management VP, Mr. Eduardo de Toledo. Good morning, everyone. It is a pleasure to be here. This is my first CCRD. I had a trajectory that was marked basically by domestic companies. All my professional life was in domestic companies very much driven by capital market. I think the 2 more important or the longest parts of my career were 20 years in Group Ultra from '87 to 2,008. This was a moment in which a private company had its first issuances of bonds at the time in 'ninety seven, then we had our IPO at the time in '99. And all the company's transformation over the years 2000 combining to the then it ended up in the operation of acquiring the Ipiranga company. So in all that trajectory in the Ultra Group, the partnership with the capital market was crucial. Always looking at the combination of the stakeholders' interests with that view that the capital market would have a growing importance in the company's lives. The same type of situation I also went through when I was at OdontoPrev. For 20 years, I was a member of the Board. There, I was also the Chairman of the Board of Directors of the company, right in its IPO in 2000 and 6. And I went through all these recent years of the deal with Bradesco Dental. And I have just ended my cycle now in April 2. So for very few days, I have ended this 20 year cycle. So since the beginnings in the Private Equity, we already had that understanding that we would take the company into the capital market. And after that partnership with the capital market, we would be creating value that would be beneficial to the capital market for the founders, for the shareholders. And this was our motto to benefit all audiences. And the capital market does allow that to happen. I strongly believe that the capital market is a crucial element so that we can have a winning society and a prosperous society. And I think that's a little bit about my professional life. And now I will start the presentation itself. Starting by the organizational structure of the company, CCR, or 2 years ago, has created this structure divided here divided in 4. We have Emperor Sao Paulo, LAMVIA, Urban Mobility and The first one, we would be able to be closer to the concessions to the business units. And this closer proximity would allow us to have the exchange of best practices so that we would have best practices exchanged by these companies. We would be looking for synergies, whatever possible in the operations. But there is a second objective, maybe even more important than the first one, which is the origination of new businesses. When we have very defined focus in a certain industry, the different areas will be able then to develop new businesses. And therefore, to aim competitiveness in new business. And new business is something crucial, special for CCR. The way that we've worked with public services concessions. These concessions do have a period of time. And therefore, we want to maintain business, we want to grow, but maintaining also maintaining the business depending on acquiring new businesses, and that focus is very important for the company. The structure that was created with these different units was completed just by the end of last year, basically with the creation of the compliance department and has taken that area. And also we created a corporate governance area. I have been invited, and I started working there in November 1. Basically has 4 main pillars. The first one is the finance pillar. The nature of the activity that CCR performs is of high capital demand. That capital demand happens to face the grants, the investments that are part of these concessions. And obviously, the financial engineering behind each one of these projects is an essential element in the company's competitiveness. This is an area that CCR has always been a pioneer at in that type of view. It was one of the first companies to go to the new market. It has a strong footprint in the capital market and that issuance is already using the capital market for that. So this is an area in which CCR is recognized for its and I will be able to help with my own experience to continue moving it forward and in order for it to be a key factor that turns this company very special. The second topic, the second pillar is the legal one. So industrial companies have in their physical assets, their main assets. And CCR, our assets are concession contracts. And obviously, the legal understanding of these contracts and the negotiation and the hearing stages, the way the concessions happen, that is crucial in terms of the business sustainability. Obviously, in the past few years in Brazil, we have been seeing a judicialization of relations, but and that is no different in the concessions case. And obviously, this demands much more from the legal area. And once again, I understand this is an area in which the company has great excellence. And I intend to continue this work in the coming years. Our 3rd pillar is our engineering and technology area. Our service providing services, ACTRA, Angelogue and Angelogue ITEC. These companies we can have a huge scale, which allows us much greater competitiveness, greater than any other player in the industry. If we add to that, if we add to scale and competitiveness, also excellence in providing these services. The scale requires us bring in very qualified professionals. If each one of the areas would need to have the different areas, they would not be able to bring such good professionals as we are able to bring into these shared services companies. And this has been one of our competitive advantages for the past years. And more than ever, we now have the challenge of innovation, an innovation which has been a model in the company for the past few years. And clearly, we will find in these actions in our tech area, engineering area also a very important echo, which will allow the company to develop new businesses around the concessions and obviously better solutions of engineering that will allow us to face investments in a less expensive fashion, also with quicker and faster responses to our users. Finally, our 4th pillar is PIP. It is the 4th, but it is the most important of all because once again of the service providing nature. And because of that, people are essential for the company that will provide us that competitiveness. And also having new businesses will depend on people, engaged, motivated people that are able to generate these new businesses. And then I have my own testimony here that I'm just recently been in the company. It is really amazing to see people's commitment to see CR. This is something that really draws our attention. I have been in different companies, and I am always amazed to see this. That's very difficult to get that of commitment. Many companies try to get engagement to have their associates very engaged in the company. And that is very present in this company, and I'm sure that it is one of the things that needs to be maintained in CCR's culture for the future because, in fact, that is what turned this into a special company so far. Obviously, we are now in no times. The world is changing. Brazil has changed in the past few years, and we will have to adjust our culture to these new times. But we'll have to take into consideration these foundations that are very strong and that have caused the company to be very successful so far. And why CCR is a good investment for all market investors. What makes this an attractive company. Basically, I would say that we have 2 main elements here. 1st, the industry. This is an area in which Brazil has important needs. Leonardo has shown us that we have few roads considering the size of the country, so we do have a lack of infrastructure, which is significant. But that for us is a major opportunity. That need for the companies that are in this industry are a huge opportunity. I would say almost even infinite, we can even see a final horizon when this industry will be totally well served. We have years years and maybe decades to fill in this gap of infrastructure in the country. And the moment by which the country is going through is very important. You have heard Natalia and Mr. Doria, and they have clearly shown that. But that's not only a matter of what they said or of this current administration. You see the continuity we had regarding the PPI or Investment Partnership Program in this federal administration, in the Infrastructure Ministry, we see Sao Paulo over the years. So my understanding is that society has understood and now acknowledges that this is the way to go so that public services are rendered in an efficient manner. The private sector, if it is rightly contracted, can bring the efficiency and efficacy in a degree that is unprecedented when compared to the public sector. Obviously, we are in a country with great needs, and we have to use this model so that we can boost the country's development. I think that's very clear to our politicians as well as to society in general. And considering this context, as I have mentioned, does have a footprint and an expertise, capacity and scale, and that's unique in this entrepreneur environment in the country. Adding to that, we have that vision of Capital market, which started in the company many years ago. It's already very mature. And once market investors to invest in infrastructure. To our advantage, we have competitive advantages that are unique, that allows us to provide profitability higher than other players. Added to that, it's a special actions in the market that allows investors to have that mobility in the market. And therefore, the combination is a single one, and it will allow CCR to take a very The company has always been conservative in the way it deals with its debts. We have a policy of not going over 3.5x net debt EBITDA ratio, which is very healthy, very conservative, considering the stable nature of our businesses. Some of you could even say that this we could have a higher limit, but we work at that level of 3 0.5 as our indebtedness level. And obviously, even being at a ramp up cycle of some of our businesses, such as urban mobility and airports. Even if you consider that, you see that we have BRL5 1,000,000,000 in debts of the company. If we use this limit of BRL2.7 against 0.5. We still have room there, and the company can seize other opportunities that are placed, as Natalia and Andrea have already talked about. It's an important element for the capital market. The company has distributed over 80% of its profits as dividends. This is a policy of dividends distribution and also growing using that room of leverage that we have. Therefore, we can distribute dividends in a significant fashion. This is a very important history over the years. And if we look at what happened to the company in the past years, this drop in the price share we had, it happened especially after 2017 that has created a single opportunity for those that want to purchase the company's shares because have the best dividend yield of the 10 years. Therefore, this is a great opportunity to invest in the company right now. Well, basically, that's what I had to bring to you today After Pedro Suter and Leonardo's presentations, we will have some time for a question and answer session, and then I'll be able to address any questions you might have. So now I'll bring to the floor Pedro Suter. Thank you very much. I'm sure this is going to work now, right? Good morning, everyone. I am Pedro, and it is a great pleasure to be here. I have always been an user of many of the assets that we're talking about here today since before was creating, and I am a witness to the value that the company has generated over the years. I came from Rio de Janeiro. I was raised in Petropolis. My parents would drive me up to so I drove all around these roads. I have been a shareholder of this company, and I feel privileged to be here today. I know that I speak on behalf of all the 15,000 employees of the company when I bring to you what we are doing and everything that we are doing to reinforce our governance and compliance programs. So we are all united around these objectives. So I speak on behalf of all of them. Well, I joined the team in November of last year. I've been in the company for a little over 4 months. I am a lawyer, graduated in Rio, and I went to Georgetown to study governance. And right after that, I went to a company called United Technologies. Maybe you do not know them. This is an American company. It's an American corporation that makes around $70,000,000,000 a year. And they manufacture all these elevators, carrier for air conditioning, the Brackenia Whitney turbines. We turn the planes we fly here and abroad. Helicopters, and this is an American company, a typically American corporation. And they are part of the down index. Since they started, they pay dividends such as CCR, very much on time. And they pay since 1932 every quarter. Every quarter, they pay dividends. And this is a company that is the largest supplier. Is the between is the top 5 suppliers of the American government and also NATO government. So as you can imagine, as a company that is the focus of the country and is very much supervised by DOJ, SEC. And that was the environment that I have worked in for 16 years. After United Technologies, I spent a little less than 2 years at Petrobras. I started at the end of 2016 after Pedro went in. I was part of Pedro Ivan and Alex team and the Board. And there, the idea was to have the company less vulnerable to the problems they had before. And I would say that over these past few years, this was the work that was done in the company, and there is still a lot to be done, as you know, but that was a very enriching time for me. And right after that, I was invited to be part of the governance and compliance team of CCR. This is a company that this was already there a new team created in 2015, very much motivated. And here I am, I report, and it's important to say that. It's important to comment this idea. I report to the Board of Directors of CCR. I have an independent structure and a very fit structure, and I have received from the Board all supports needed so that together with the top management team of the company, we can take this project forward. And here, I would like to talk a little bit about the obvious. I want to put things into context and tell you where we are now. We are a company as we are a Brazilian company, a listed company, a concessions company. We make over BRL 10,000,000,000 a year. We are over 15,000 employees in this company over several states in Brazil, Costa Rica, Ecuador, Curacao. We are a complex and very large company. And we are a company that deals every day at every second at every minute with the granting authorities, with the public power, federal executive power, state executive power, different legislative powers that all the time we are talking to city halls, to city administrators, all the stakeholders and the cities with which we relate. And that relationship is very and that relationship is very intense and it is also permanent. It will continue being intense as well as permanent. That is part of our business and our business model, and we need to be better prepared to this reality. And once again, we will always be looking for this relationship for the better interest of our users, our stakeholders and also the granting authorities as well. Well, since the '70s and scandals with the Lockheed Martin selling planes to the West Germany area and also other scandals that have contributed to the development or to the approval of the FCPA, the anti corruption law in the United States. And after the scandals of Enroll Taicl, WorldCom in 2000 and 1, that somehow also have contributed to the approval of the Sarbanes Oxley. It is a fact that the entrepreneur environment has deeply changed. Just out of curiosity, I have checked in the last decade, the amount of fines just for FCPA in the United States has increased 300%. Naturally, this is in the United States. I'm not talking about Europe. And here in Brazil, I do not have the data, but it's much higher than that. And following cases such as Zemens in Argentina, the kickbacks payments to be able to get contracts for personal identification of the Argentinians or the $90,000,000 that GM had to pay to sign the leniency agreement with the American government because they have hidden a failure and there are cars that have caused at least 13 fatal other elevator companies. And I had I was working in this company when this happened in Europe. Also, kickbacks for Legg Mason for the Libyan government, defeat devices of Volkswagen cars and all of these, and I could go on and on, and they said that I have some time, but I could spend the whole day talking about these cases that happened in the last 3 or 4 years around the globe. But I think that really explains certain activism of the authorities and investigation and punishing attitudes that are not the right ones. They are not the ones that you would expect to see in such companies. And here, naturally, this is no different. The environment was already changing. There was approval of 2,486 here in Brazil has also to say the obvious. We are a company we are a listed company, large one, very complex concessions that we will keep dealing with the granting authorities. Therefore, we need to be better prepared to face that challenge. And that's what we are doing. And all of us, and I'm sure that in the last 4 months, I am a witness to the support of the Board of Directors and my call of my colleagues. And we understand that this transformation process will turn us much stronger. And also, this will be a competitive advantage for CCR. Now going to the gist of the matter. Well, CCR has been facing this challenge in a very transparent fashion over the last 4 months. We changed our risk matrix, not only the operating and financial risks because these are very well controlled by the company. Now I'm referring to the corporate and compliance risks. So we redid our matrix and we must know this in-depth in order to know the risks and to mitigate them. This project of revision of our risk matrix is going to be the guiding star of all our actions. And the objective is to look at all the governance of CCR in order to improve the decision making process that has to do with this the middle part. So this is the description of the company's governance, and you see the President of the division's reorganization that we carried out that Leonardo referred to. And we have a collegiate, which is made up by the Executive Board and Leonardo and myself and Eduardo. And the Executive Committee makes decisions, and I report to the Board. And we have independent auditors for governance and you have the Board and the shareholders. So the objective here is to improve the decision making process in order to make it more efficient, more transparent and more traceable. With the Board, we have agreed to deliver the project in up to 18 months. Some changes we have already implemented. And over these 18 months, we will be delivering the whole reformulation of our governance. CCR was the first company ever to come on board of the Novo Mercado. I bought shares at the time. I remember this quite well. And we intend to continue to challenge ourselves on an ongoing basis and continuously improve our governance. The objective is to have a sufficiently structured governance in order to tackle all the challenges that we will be facing that Leonardo mentioned and that he will go in-depth in a few minutes. Here I summarize some of the 12 fronts because gentlemen, I have been working in this area for so many years and the history in Brazil is the IBGC doesn't let me tell lies is that governance and compliance are check the box are a check the box process. This is the reality for most Brazilian companies. When I came to Brazil by United Technologies, when we implemented governance and compliance in a Brazilian company, in a different culture, in a Mexican company because I worked for Mexican company as well and in Argentina or Chilean company, all this involves very important cultural changes. And here, the objective is to deliver or to put some muscle on the skeleton that we already had. Of here is to define very clearly the attributions of our CEO, the Chairman of the Board, our committee coordinators and give more time to the Board to deal with strategic themes because our Board is a little bit too operational today and improve the communication flow in the board and in the committees and the executive committee. This flow should be more symmetrical or might traceable. And more especially, having an independent evaluation of all board members, all committee members and the board and committees and the executive committee. We already do this today, but we want to have a more in-depth evaluation in order to improve this governance instrument. Today, we are already having our matrix for authorization levels. And this is very much based on figures. And the objective here is based on the new risk and compliance matrix, identify some transactions that deserve more attention, more dedicated, more careful attention on the part of the executives, not only based on figures, but we are going to review the whole matrix. And this review, of course, will help us to remove some of the themes that go to the hands of the Board only because of the value involved and leave to the Board more important subjects such as sponsorships and donations and relationship with politically exposed people, our participation in trade associations. And with that, we will naturally strengthen the attributions and the operation of the Executive Committee of the company, which is made up by the statutory executives, and they will be able to make decisions in a more formal fashion and removing from the agenda of the Board some things that have more to do with operations. And the objective is to give more accountability to each and every one of us, all of us who participate in the Executive Committee. And I imagine that the Board will have more time left to deal with strategic themes. Also the policy regarding transactions with related parties policy, the policy of course does exist. We are just reinforcing it. And we understand that with the creation of committee made up by the independent members that will revise the transactions. And by that, I refer not to very small ones, but revising these transactions and help them make their decisions, especially now in this growth cycle. And another policy that we are revising, we are adding to many items here is the succession of our management giving more clear, more specific parameters and conditioning this policy to compliance metrics referred to is not separate from everything. Many people contract a review and then it takes them 2, 3 years in order to start tackling it. And at CCR, we will be doing this on an annual basis and this will be part of our annual target review process and the review of our risks. Although the company is very stable in its revenues, this is a company that lives in a I wouldn't say unstable environment, but changing environment. So we have to review our risks all the time. And another policy that we are reviewing is the compensation and incentives and long term goals for all of us. And I would like to make a caveat here because the program does exist and it has been working for many years, but we are adapting it to align it to these strategic objectives of adherence to our governance and to our compliance program. So recognizing the special circumstances that we find ourselves in, I tell you that we will have a very strong compliance program and matching the operating excellence of CCR. And this is what we are all making our best endeavors to achieve. The program is centered on these 5 pillars and people use this expression in English, which is tone at the top, which is the major pillar. Then the culture of CCR, The third is an ongoing risk management, compliance risks, corporate risks, the structure of compliance itself and also the control environment. And now I would like to say a few words about each one of them. Just a moment. I'm trying to get to the right slide. Okay. So tone at the top. This is a very often used expression, which means that you must have the visible, vocal sponsorship by our leaderships visavis the commitment of doing the right thing, whatever it may cost. CCR understands that it is to the best interest of CCR to have a very clean, transparent and fair game. I would say that we are the best company in this region and we are very well prepared to tackle all the opportunities and all the challenges provided we have a level playing field. This is what we want our leaders to communicate to all the people who work for CCR, also to all the stakeholders, everybody in this room as well that this is a firm commitment that is part of our culture and of our daily commitment. The stone at the top, this is where things come from. We must recognize that the behavior of people is very much impacted by the behavior of our leaders. And all of us expect our leaders to have an above board behavior, not only in their daily lives, but also in terms of communicating these values to all our stakeholders. And this is what I mean by tone at the top. So we will do this together. We will be communicating a lot and this is not a process that starts overnight. It is already being done at the company gradually and we are going to further reinforce it and deepen it. The second pillar is our culture. We must recognize that people behave very much based on the incentives that they receive. And it is important to understand that CCR culture is a culture of very daring objectives, a company that inaugurated this cycle of concessions in the country, a company that is very enterprising. But these objectives are fully conditioned to our culture of integrity of the business itself. So this reinforcement of the culture is one of the pillars of our compliance program. I have already talked about risks extensively. We have a risk area, a group totally dedicated to this process within the company, operating risk, financial risks, compliance risks, corporate risks in general. And we are devoting quite a lot of time to this. And this is part or this is one of the pillars of our compliance program because when we identify a risk and when we measure whether we are really mitigating this risk efficiently, we know if we are going on the right direction or not. Is a very important process for us. The compliance framework, having a compliance framework is vital. I know that this must sound quite obvious, but this function is or has gained a certain status. And the objective or my objective, the objective of compliance area, a strong one, is to cease to exist. When we cease to exist within CCR, when we no longer have a compliance area, it will be because I really have delivered on my mission. I do not believe this will happen in the foreseeable future. However, we will be working in this because the compliance culture, if it permeates the whole company and if it's it has to do with the adherence to our policies, to our culture and having somebody to explain to you what you should do. Sometimes there are doubts regarding the enforcement of a policy, but the more mature it becomes and the more mature the company becomes, the less necessary I am. So and this is my utmost objective. And finally, we must measure and control and certify to see if we are really doing what must be done. Are we doing everything that should be done? Will the control environment challenge us to identify weaknesses in our compliance program and measure if we are right, we are on the right track. Skeleton. The way we are reinforcing a program that already exists, that is to say the skeleton is already in existence for quite some time. We already have a communication channel of our people, our headcount with the executive committees and also a review of compliance of our suppliers in order to give you some figures of a list of suppliers, about 20,000 suppliers, we have already analyzed 100% of the suppliers would have a high risk signs and we have already blocked 30% of them. They are no longer part of our supplier list, an additional 25 we didn't remove, but we blocked them while the remediation is not implemented that we told them they should do. And we are working another with another number in terms of disseminating this compliance culture with our suppliers. So this is a process that had already been occurring in the company, and we just have to fill some gaps and reinforce the program. The objective here is to give more clarity and more security to all our associates in their daily work. And the first major front is the review of our code of ethics and conduct, which is very manual, I would say. It's very dense. This is where we have all the problem. This is classical. I don't think it's very different from many others. And in my experience, our associates need to have tools that may be useful in their decision making process. We are here to help them adding value to the process. So we have to simplify this very important policy and break it down into many different documents that will serve as tools for our associates. And here we are talking about individual policies, more clear, more objective, themes such as relationship with politically exposed people and sponsorships and donations, our participation in class associations and many others that represent risks to our business. One policy that we are implementing this year is the consequences policy. The consequences policy, a clear transparent one, a straightforward one and universal. It's important to understand what are the consequences of non compliance. We need to feel that the compliance system is used. Breakdown, we talk about the policy of consequences, and we also create a group monitoring and investigation tools. The company, as Eduardo said, is very privileged because it has 3 shared services company that operate in an SAP, a very rich database and information, and we intend to use this database with tools of monitoring and artificial intelligence in order to give more agility to the investigation process that the company must undertake in order to mitigate the risks that it is exposed to. And finally, it's important to certify the program, the compliance program. It's important for us to see that we are to know that we already have the solution. And I'm sure that over time, we will be improving on the sketch that I'm sharing with you today. And we are going to improve it with some dialogue with some external consultants that might be able to certify our compliance program. And finally, just to close my presentation, I would like to share with you a belief a belief that has been very strong in these last 4 months in which I have been working for CCR. I feel this every single day. And I'm very happy and very bullish that we will be able to give this final step. As I said before, I believe that all of us at CCR, all of us understand that it is a major competitive advantage for us, our operating model and our management model and even more so our governance program and our compliance program, all these instruments are competitive advantages. And the reinforcement and the sponsorship of these instruments will allow us to conquer more businesses and to guarantee once and for all our sustainable growth. So I'm very happy with this mission that was given to me and for us because we are all together, And I count on your support. This is a very important support, reminding us of the need to go ahead with this agenda. I already have very open dialogue with many of you. We will continue to do so. The company intends to continue to have a very transparent dialogue showing everything that the company has been doing. So I thank you very much for your time and I will be calling Leonardo to come to the stage. Thank you. So now continuing our presentation, I would like to talk about the future once again, how we foresee CCR's future from now on. Well, first, I would like to bring back and to stress once again our pillars, which are the base of our growth and of our assumptions for investments here in the company. 1st, capital discipline. CCR has always favored and valued, and it's part of our DNA, that capital discipline, which is directly related to the 2nd pillar, which is the qualified growth. We really value in value investing in things that we do believe in and that we know about the results. We run detailed studies. And what can be worse than losing a bit in process is to be awarded projects in an inadequate fashion. So we are very careful when assessing, along with our shareholders, the investments that we intend to make. The 3rd main pillar has already been discussed by Mr. Eduardo Toledo and its people management. This is our greatest asset in the company. We are in a continuous process of training of our associates. And this is one of the pillars that is always being developed, and we as well. Our companies have to address it and have to be very focused on it. The company is developing specific projects in this area. We are looking for different alternatives, especially aiming environmental preservation, clean energy. And this is one of our main pillars, and it is one of the basis for our growth. And finally, as Mr. Pedro Suter has talked about, our corporate governance. We are always improving that governance. CCR has always been a significant company governance wise. This is part of our DNA, and we always aiming for this continuous improvement. So these are the main pillars for our growth. Eduardo Toledo also talked about this slide. I just would like to stress it and shown our capacity to face the new investments that will come in the future. CCR today has indebtedness level that is very comfortable. We are our net debt adjusted operating EBITDA ratio at 2.7. It is a very comfortable figure because we may reach up to 3.5x. And we can have with this leverage over BRL 5,000,000,000 if we reach 3.5x our net debt over EBITDA ratio. So we are ready to face all the investments that will come ahead. This chart shows a little bit of that. Actually, to our left, year on year, we have the sources that is our EBITDA generation and our debt. We see that as investments increase, for instance, in 2014, EUR 2 700,000,000 of investments, EUR 215,000,000,000 EUR 3.9 billion, EUR 20.16 billion, EUR 4.2 billion. We also increased the indebtedness level because within our assumptions, our investments are made by debt leverages. And now in everything else. And you can see here, pay dividends, interests, investments and taxes. So it's already time to look for new investments. The company is proving and proving that prior slide, we are proving to have a very comfortable indebtedness level with a lot of room to be able to look for new funding sources for investments. And as Eduardo has already shown in this slide, in this growth policy, we intend to maintain our practice of dividends payment. The company values that. This is a company that is considered a sound one in terms of dividends payment. And we will continue having this practice. And what draws our attention here is that CCR has always paid dividends to its shareholders using dividends generated by its own projects, showing that CCR never used debt to pay dividends. So there was only one exception, 2010, where we had to use €80,000,000 and we had to pay 80,000,000 and that shows our policy. And it shows once again one of the assumptions that are the basis of the company. Also, as far investments from now on, we wanted to maintain our investments in social programs. The company for many, many years is working on it. We believe this is very important. Our focus is always health, quality of life, environment and road safety, culture and sports, education and citizenship. These will be our focus to invest in social programs. We already have a track record of almost BRL300 1,000,000 invested in this area. In the past 5 years, the average is over €30,000,000 a year of investments. So our policy, once again, is to keep moving on with these investments. Vision, which we have the highways except for Sao Paulo. We do have several opportunities, and they have already been brought to us by Natalia earlier this morning. Being studied, we have a few projects for PPIs, 11 projects over 8,600 kilometers of highways, and some of them are already rebidding processes. This block here on the bottom, Concert Dutra CRT, as Natalia said her 2,500 kilometers of roads in Parana that are in the final stage of this original contract. So in the federal government, BNDES is studying, this is not under the Investment Partnership Program. But under BNDES, there are 10 projects that were identified over 5,700 kilometers of highways that should be out to the market starting in 2022. Therefore, we have a large number of projects in the federal area already being prepared to be brought to the market. And still within LAMBIAS, there are some states preparing concession programs. Among them, we can mention Goyas, which already had a bid out. And because of the end of the final management, they decided to suspend, to cancel it. But the current administration is already considering bringing it back to the market. It's almost 900 kilometers of highways. We have already considered this package. These are interesting highways, and they do meet our investments policy. In Rio Grande do Sul, the governor was just here in an event in Sao Paulo. And he did say in this event that there is a program they wish to implement in Rio Grande do Sul, which are over 500 kilometers into lots of highways. And they will have a special condition for us because since Fiasau that we won recently, we also won a lot of competitiveness, thanks to using the synergy and improving competitiveness in the region. In addition to that, there are other projects in other states. Minas Gerais is already considering a new concession program in Mato Grosso do Sul and Mato Grosso. So there are several other movements in different states in country going on. Now for Sao Paulo's infrastructure, addressing the highways in Sao Paulo, The governor has just stressed here that and maybe in the short term, this is the major opportunity we will have, which is to develop businesses within our current contracts. We have already identified 4 of our projects, Autobahn, SEP Villas, VLOS and Renovias. Amounts of additional investments of over BRL3.6 6,000,000,000. These are projects that are already very much advanced, and some of them already have ready executive projects. And now this new state administration is giving these projects a special treatment. And as the governor said, we expect all of that to be addressed very soon. And once again, this is one of the main potential investments in our contract here in Sao Paulo. In addition to that, we have the expiration of contracts that will start now in 2019 with Centro Villas. The government has already announced the launching of this project, and it is being changed. Just to give you an example, the original situation had 2 90 kilometers, and now and there's no modeling done by the state government is going to be over 1200 kilometers. So probably this will be a new idea of the state administration of rethinking the prior model. It will add new highways, and it will increase the network that is going to be granted to the private sector. We are talking about special roads here in Sao Paulo. The government of the state has opened a process with for PMI. And once again, we will be participating marginal roads, these river lane roads here in Sao Paulo. And there is another project of BRL 1,000,000,000 in the coast of Sao Paulo. Now CCR Mobility, this is for urban mobility. We have here Airlines 8 in line of CBTM. This is a project that CCR has participated in the PMI at the end of 20 17. We sent the state government a study. And now the government wishes to start a bidding process. And we will have and this will be in the public consultation. We are talking about over 1,000,000 passengers a day. This is a very important line for Sao Paulo, an investment of BRL3 1,000,000,000. This would be a PPP for 30 years. So this project is already under our radar. We are studying that for a while, and we consider to be an important project for CCR. Also, and this package of this take up for the state, it's been announced a boutique, which is the intercity train. It's called TIC, T I C. It will leave Sao Paulo equal to Americana. And also, it will include Line 7 from CPTM. This project demands over 500,000 passengers with a potential of 750,000 passengers, Dave, sorry. And we are talking about investments of BRL7 1,000,000,000. And it will have an extension of 136 kilometers. We demand a lot of efforts. Still on CBTM here in Sao Paulo, we have lines 11, 12 and 13. CBTM is the train here in Sao Paulo. Lines 112 connect the East Area to Downtown Sao Paulo. And Line 13 goes to the airport of Sao Paulo. The idea is to have a single system with these lines because one competes with another. So it doesn't make any sense to have a bidding process for just one of them. And what we have suggested to the state government was to have a manifestation of interest plan that would include these 3 projects. Okay. Moving on with TIC, it has that lag that goes from Sao Paulo to Americana, but it will have another stress going up to Santos, connecting Sao Paulo and Santos. This is very much in the beginning, that's the initial study. But the idea of the government administration is to move on, and we are talking about over 110 kilometers of rails here. Well, and abroad in terms of mobility, we are following up the subway in Bogota. Subways there yet. And we are following up the subway. They have no subways there yet. And we are following up the project for the past 2 years. We also have participated in meetings with the granting authorities. We are using our expertise here in Sao Paulo to work with them. And the project is now out to be approved, the 5 groups and CCR. CCR is the 6th group that has been enabled to participate in the bidding process, which will be the bidding conditions. And they in order to define that the conditions of the bidding process, they do talk to these companies that are preselected, and this is part of our investments policy as well. And here, we would have investments of $3,000,000,000 3 point $3,000,000,000 and most of that comes from the government itself. Well, considering our current contracts in Costa Rica, we have ARES. ARES. We have already started a negotiation with the granting authority to integrate new investments to the current contract, which will demand some type of rebalancing and term extension. Also in Curacao, we are already talking to the local government and the granting authority an extension of the contract, also thanks to new investments. And the airport of Belo Horizonte, what we are trying to develop to add more traffic and demand and revenue is to have there the logistics hub of the industry and the airport. There is already some indication coming from Federal Revenue Brazil. And we are talking to some companies that are considering going into this industry airport concept there at BH Airport. Still talking about airports. Natalia has shown that now we'll have the 6th airport round. We will have 3 main groups of airports, the north, the south and the center 1. We have over 60,000,000 passengers a year in these airports. Our idea is to continue working on them, studying them and participating in these bids. It's still in airports. We have here the rebidding for the Viracopos airport. Everything points out that it should go back to the market. It looks like negotiations there are not moving forward. And one of the ideas of the federal administration is to bring this contract back to a rebidding process. In addition to that, we have NASP. We still believe more and more in this project. Just remember, in the end of 2018, the federal administration in its national air plan, they talked about the obvious need of having a new airport for Sao Paulo City. And CCR is already developing this project for a few years. We have already acquired an area in Caeras and Cajamar, 13,000,000 square meters. This is a very appropriate area. We have previous studies of area on availability. So everything points out to a possible area for building in new airports to meet the needs of the city of Sao Paulo. And in addition to that, we will have the 7th round, also mentioned by Natalia, with 15 separated in 3 groups with a larger number of passengers because here we'll have Congonhas and Santos Dumont. Here we are talking about 40,000,000 passengers a year. So in airports, we always have alternatives of investments here in Brazil. But this is a global business, and we are always paying attention and checking of different movements. Out of Brazil, In Latin America, we see the secondary market movements, and CCR is following up that closely and checking the interest of participating in this market. In addition to that, abroad in the U. S, we have a company that provides services in most of the largest airports in the U. S. And we want to develop and we are already developing. We started talks to some of these large airports to develop cargo terminals. This is a new business, an interesting niche that we are finding in the U. S. We believe this is a business where CCR really can have an important footprint in the airport market in the U. S. So now we have a summary of all these opportunities. We are talking about 11 new federal highway concessions by 20 21, 10 new concessions from 20 by 2022. In addition to this last item, which are the opportunities to invest in these new contracts of CCR. The investments of BRL 10,000,000,000 in new state of concessions out of Sao Paulo, 5 new bids in the area of urban mobility, with total investments of BRL22 1,000,000,000 and bidding for 2 lots with 37 airports by 2022 here in Brazil. So with all that, we do believe that these are great opportunities. CCR, as we already have shown, is very much prepared and ready to face this new growth challenge. And we're very excited. We do believe that Brazil now will react and Brazil's economy will respond. And so once again, we will have great opportunities to continue our growth process. Now we'll show a video for Line 15 so that we can put together a panel and all the top management of CECL will be here available for your questions. After that, we'll have a panel. We'll have a session with our lawyers to talk about the agreements and about the bids. Thank you. Transport dreams to bring more quality and market. CCR Mobility. CCR Mobility is responsible for concessionaires via Cuatro, a yellow line of the subway in Sao Paulo, CCR CER barge is the waterway transportation in Rio, the VLT from Rio de Janeiro, the light rail vehicle there. As you see our subway in Bahia. And also Via Mobile Dage, which operates the lines 5 of Subway and that will operate Line 17 of La Mona Rio in Sao Paulo as soon as it is ready. In an auction in March 11, 2019, in the Stock Exchange of Sao Paulo, the consortium Via Mobilidade was awarded as next steps. We will have the validation of the documents of the consortium. And if they are approved, the Via Moberdade Line 15 will be the winner of the bidding process. Then they will pay the grant to the government and we will sign the concession contract. From then on, we'll have 2 transition periods. The first one, Via Mobile Adade will be an observer. Just checking the line that is on the hands of the subway in the 2nd period, Via Mobile Dage will operate the line and the subway will just follow it up. After that, we'll do the maintenance, conservation and improvements of Line 15 for 20 years. Today, we have 7.8 kilometers of extension with 6 stations that are already operating. And by the end of 2019, over 4 stations will be operating. The idea is to serve 3,000 people a day. Today, CCR Group transports over 1,800,000 passengers every day. Up to the end of 2019, we estimate that we will have had 2,100,000 passengers per day. And also we estimate that within 2 years, we might reach 2,900,000 passengers every day. With the concession of Line 15, Silver CCR Group extends its participation in urban the largest capital of the country and will count with 50% of the transportation network over rails in the city of Sao Paulo. We will have 60 kilometers when the Line 15 silver, 17 gold and 4 yellow will have their construction works concluded. Another important step in the strategic planning of CCR that aims to qualify growth, adding value to shareholders and also contributing to the socioeconomic development as well as the environmental one. Brazil, CCR Mobility, more comfort to users, more mobility in the cities. I would like to invite the Executive Committee of CCR to come to the stage. I would like to invite Mr. Sebastien Tuzhou to talk about the legal aspects of the self mediation terms and the lineages agreement that were signed by CCR. Good morning. It's a great pleasure for me to accept this invitation by CCR to participate in this event today and talk to you about the measures that were agreed both with the Sao Paulo Public Security's Office and the Federal Prosecutor's Office in Curitiba in Parana due to a series of events that were reviewed, especially as of February last year. For a brief timeline, I would like to mention that in February 2018, the terms of a cooperation of a plea deal were published and in which certain events were attributed to the company. And I was hired as counsel, administrative counsel and together with the criminal colleague, we started an evaluation of what effectively of what had been done or announced by the press really had some basis and the company formed an independent investigation committee chaired by Minister Carlos Veloz from the Federal Court and hiring Tosi Ni Freri and other law firms, especially in control risk to check independently the fact that we're being attributed to the company and published by the press. Both the investigative committee promote by means of the officers' contract, a deep investigation and we as lawyers in a complementarity relationship, we decided to seek information, especially regarding many executives that were still with the company. And as of this moment, we took the initiative of going to Sao Paulo to the investigate certain episodes that were being tackled. And also, we went to Curitiba to establish a dialogue initially with in terms of offering the federal prosecutor's offer, everything that we could in terms of cooperation and to seek to clarify the fact and to dissipate any doubts. And over the year, the independent committee produced a whole series of initiatives with a huge amount of information, a huge amount of documents. But we, lawyers, we were able little by little by means of dialogue with many different people, we were able to put together a whole set of information that showed us at a certain point in time that it was imperative to seek a consensus solution, first with the Sao Paulo Prosecutor's Office and then with the Federal Prosecutor's Office. And this is a theme about it. Marcelo Trinidad, who will talk later will be talking later. But I would like to say that it seems crucial to me. So I bring some news and then I can clarify more in detail. Some news about this agreement. The leniency agreement is a document by means of which the company contract with the prosecutor's office, federal prosecutor's office in indemnification or to repair or remediate damages coming from illicit practices. And at the same time, the company commits itself to implement a program of compliance and integrity program and governance program that are submitted to the prosecutor's office for them to check and accept. And cooperation on the part of the company with the investigations that might be carried out by the prosecutor's office. And in this specific case, the leniency agreement by definition, although well, except it made to the agreement signed with KADE. But even if we have a very short experience, a very short life in this question, for instance. In fact, it started in 2014. But what can we see very clearly already today is that the leniency agreement signed by the companies, they do not progress if they are not based on testimonials together with the evidences that the Committee for Independent Investigation has collected. But undoubtedly, the testimonials of the people who were involved in the fact and they are crucial for us to define the what will happen with this agreement and in the evaluation of lawyers. It was totally essential mainly considering the circumstances of CCR being a group of concessions in public services. Risks went much beyond because public service concessionaries previously had been involved in some illicit acts. So it was mandatory to have the cooperation of the critical people involved, the executives and etcetera at that point in time. And here, I would like to add one circumstance, a very special circumstance, which is the fact that many of the illicit deeds already had the penalties in the statute of limitations from the penal viewpoint, from the criminal viewpoint for many of those accountable, it no longer existed because it was already under the statute of limitations. And because these people would be willing to submit themselves to individual agreements And so this was our major challenge. This company and the controlled companies, well, in any point in time this happened in terms of expressing a structured service and expression that got into all these matters with the car wash operation coverage, etcetera. The company did have a structured department and that had the control of a bank, for instance, that operated wrongdoings on corruption acts or issues involving electoral problems. Quite the opposite, the amounts were not relevant if compared to other episodes that became famous. They were not structured professionally, so to say, in terms of having a structure totally set up for this purpose. And the work by the investigative committee had a more limited scope, so to say, in spite of the huge contribution that they could bring us because the round doings didn't bring more evidence. So the participation of the people, the individuals was very important. So it was a huge trouble for us in terms of persuading their lawyers. And with these individual agreements that the individuals have signed, it was possible for us to put together an agenda defining the scope or the object for the leniency agreement of the company. So starting from there, in Sao Paulo, in December in November 2018, this agreement was signed with the Sao Paulo Prosecutor's Office. And this year, it was possible to conclude negotiations with Curitiba and thus signing a leniency agreement. To specific laws that regulate the matter. And a lot of this legal construction comes from an exercise coming from the investigations that started way back in 2014 within the scope of the L'avanger to the car wash operation and then spread out throughout the state. And so the company signed this agreement. And by signing this agreement first, the compliance commitment is materialized in an already existing program and it ends up being approved and even praised the public prosecutor's office and it's a lot of the program that was presented to all of you today. Within the scope of the remediation, the amount are public and what has to do with the agreement with the Federal Prosecutor's Office, the currency for the remediation amount, which is the 2nd big objective of the agreement was defined based on a basket in which there was a definition of a certain amount to be paid in cash within a certain timeframe. And the second part of this remediation payment would be paid by means of reduction in the tariff chart by the consumers that use the highways. And the company subsidizes the discount that is given to the users of the system that is managed by the company. And the 3rd part was established due to projects in the system that is managed by well, in Roto Norte managed by CCR. So this mix of currency, so to say, was adjusted after many efforts and a lot of negotiation. And today, it will be the object of a ratification that should occur next Thursday by the Federal Prosecutor's Office at the 5th chamber that has the competence to ratify these agreements and then bring it to a judicial ratification. In Sao Paulo, things are a little bit different as the agreement or the currency, so to say, is the Brazilian currency in 24 months at the timeframe. And this agreement was submitted directly to the court. And I was with this judge and I dialogue with him and he determined that the parties involved should manifest themselves and they have already manifested themselves. And he said that it would be necessary for the and in terms of receiving the amount that are already deposited in an escrow account, Under the second aspect, the reparation or the remediation, the agreement evolves so that the company may obtain a total settlement regarding the amount that caused the collective moral damages as they are described, and there are no damages to the treasury. And which has to do with the fact that the company is a concession area of a public service. And the third aspect comes from the commitment in the leniency agreement and which have to do with the cooperation by the company that will be given in terms of the investigations and the way that goes beyond the fact that are directly related to the company. So the company's commitment and once again this has to do with the individuals that signed the individual agreements. And by means of these individuals well, these individuals are no longer with the company and the company will be able to comply with the objective of giving the Federal Prosecutor's Office and the Sao Paulo Prosecutor's Office the necessary information for the full clarification of the fact that ultimately determined the need to sign the 2 contracts. And this is what I could bring to you. And I would like to conclude by saying 2 things. First, I don't know whether you are familiar with that. Due to legal requirements, they happen in total confidentiality. And of course, I know that there were leaks more than once, but they did not cause damage to the company or to the professionals that work for the company. And this confidentiality agreement, one way or another, removed part of the need that the company understood it had in terms of accountability and visavis the people who were involved and the people who worked for the company. And in spite of all the ratifications and the agreements will become public with the ratifications, but the testimonials of the former associates of the company, they will continue to be confidential for some time, so that there is no investigations that are still underway. And the second aspect that I would like to mention is the following. And I bring my own personal testimonial than when information coming started in 2014, 2015. I participated in 3 negotiations of 3 large agreements. And my expectation at the time, 2014, 2015 2016, was that it could be could produce positive effect not only for the Prosecutor's Office and for the Treasury, but fundamentally for the companies that were the signees of these agreements. But this was an expectation that I had about 4 years ago. And today, what I can tell you is that I am 100% sure that these agreements comply with the vital role. They fulfill a vital role for the companies that for different reasons. And it doesn't matter now, but companies that got themselves involved more or less or in these misdemeanors. And I have this certainty because I have this close relationship with the companies and that were involved in these cases and that were able to rebuild themselves. And this has one additional element of emphasis, which is the fact that CCR is ultimately a concessionaire of public services. It was totally essential to sign these agreements and have the guarantee that not only the different companies in the group would continue to have their concessions and maintaining their concessions and with the amendments that are usually necessary. But to have this guaranteed the participation in new projects, in new opportunities, and this is equally guaranteed with these agreements. So my conclusion is that I'm very optimistic today. And this is evidenced by the fact, the recent fact that showed that the leniency agreement and from the competition viewpoint can bring us the certainty. Okay. So these were my words to you. And of course, I will be available to answer any questions that you might have. Thank you very much. Is here and we will leave the Q and A to the end of the event. Now I would like to invite Mr. Marcelo Trinidad to talk about the PIC. Good afternoon, everyone. Thank you for inviting me. Ed, I would like to talk to you about the PIC, which is a rather new theme, not only to you, but to all of us and the other side of the table. These experiences have been appearing recently under the case of CCR, as Arturo Tojo mentioned. But it's huge challenge, a challenge for the survival of the company's businesses. We are here vis a vis situation in which the business itself of the company depends on this kind of adjustment that Doctor. Tushau mentioned, because the survival of the company would be at risk without that. So This is why the cooperation is so much needed and the problems have the company has to show that these problems no longer exist and that they have turned the page on the problems. Without that, the company would not be able to continue its activities. So with everything that Doctor. Dushau explained, we needed to convince people or the former executives of the company to cooperate and to offer their cooperation with the prosecutor's office and the different prosecutors' offices, federal, the state of Sao Paulo and any other that might be required in the future. And this was necessary. And of course, here, we also had negotiations going on, on one hand, negotiations with the authorities and on the other hand, negotiation with the people that had the information. And of course, these people were the ones that knew the purpose of the act that had happened. And as Doctor. Tushal said, there was no accessible internal record in the company capable of giving this information. It was impossible for the current management of the company to obtain this information by means of documents. And without this document, the Prosecutor's Office was not willing to come to an agreement with the company. So this is the reason why the company had to negotiate the PIC with a group of 15 executives that were considered as the people that should be in this PIC and the total amount to be spent. And it's BRL75 1,000,000. And this amount itself, if you consider it isolatedly, is a relevant amount. But when you compare to the potential damage that it helps to avoid to the company, it is quite reasonable and necessary for the company to go ahead. So basically, the Board of the company was submitted to this decision after a long and tough negotiation with these executives that said, well, I will no longer be able to get a job with these agreements that I'm going sign. It will be impossible for me to generate income, and I'm going to suffer freedom restrictive measures and why would I do this? Why shouldn't I negotiate in better conditions for me individually and not among a group of executives? And this is what we see in the newspapers in relation to the other cases. We see this competition between the executives to see which one will be able to tell first. This takes a long time and the company would not be able to sign its agreements quickly and turn the page. And what would happen if and when the company was able to do that, the company would end up spending much more than it spent for these two agreements because ultimately the contribution that the company would give to the prosecutor's office would become no useless. The company by signing the PIC and the contracts with the former executives, the company was able to give the Prosecutor's Office something in exchange that is to say information that these people were obliged to give. Should the company not do this, let's say the company signed an agreement in 1 or 2 years' time, In case this happened, the company would have a major problem and would end up paying much more. And maybe the prosecutor's office wouldn't even accept a leniency agreement any longer. So this was the scenario ahead of us and the Board made a decision of approving the PIC. But as you well know, the approval of the PIC was conditioned to the ratification by the shareholders because one of the things that is being adjusted in the PIC is that the company will not file a suit against the former executives in terms of indemnification regarding the cost that the company will have and is having due to the leniency agreement. Company's viewpoint, you can well imagine that the recovery of these amounts, the chance of recovering these potential credits, given the situation of the executives, be it in terms of their personal assets or the real situation involved that they are in the investigations. So this waiver from the credit viewpoint is no longer so intense because the chance to recover this amount that the company would be spending would be very small, especially if we consider the amount that the company would be obliged to spend should the company not sign an agreement. But it would be important to give this to the former executive because, of course, we would get into a vicious circle and the former executives would never accept to cooperate. So we should consider this debt settled for the former executives. So the Board decided that they would consider this credit as already settled. And this will happen in the next extraordinary shareholders meeting. It will be during the same day as the normal shareholders meeting to rectify the PIC. Besides the amount paid to these executives, well, they will be paid in 5 years' time because as Doctor. Tushau said, in order to comply with our agreement, they have to continue to cooperate. And therefore, we defer this payment over time. And should they interrupt their cooperation and they do not comply with the contract, the company automatically suspend the payment. And besides asking for the money back that is to say whatever had already been paid. So we maintain them encouraged to cooperate. And beside this amount, besides the waiver of their lawyers will be paid by the company and any expenses that they might have. And these amounts are much lower than the total amount of the PIC. I think the final summary of this decision that the shareholders meeting will have to make is the same one as the Board of Directors has faced to make the decision. We have a scenario with the PIC and a scenario without the PIC. With the PIC, there was a leniency company's survival would be at a risk. A risk this would not happen and the company's survival would be at a risk, a risk for past concessions and risk for future concessions. Damage reduction because when you have a lease agreement and a PIC, the Integrity and Conducts program, you have combination of the amounts and the company knows that the subject and it will have to spend that amount because of the subject. In the scenario, without the PIC, it was of financial uncertainty. So can you only imagine how we would communicate to you and communicate the market what was the risk for this company economically and also financial wise because of the uncertainty coming from the not signing of a lenient agreement? What impact would that have in the company's revenues? The ones already contracted and the potential new revenues and in the APIC scenario, we are sure that this will how much this will cost versus an uncertain scenario, which would be the one without the Integrity and Conduct program. And these are harsh words, but we are exchanging the risk for the company to go bankrupt by a path, sure path to move forward. And I'm sure this will be the best decision for the shareholders meeting. And of course, all of this is very new. We are frequently facing the question. No one has done that before. Yes, of course. In fact, it is a situation of a listed company that needs to sign a leniency agreement because of events that were directly connected to the company's businesses. This is an unprecedented situation in the past. We had 3rd parties that came out as the ones to name and being investigated by the public prosecutor's office. Here, the public prosecutor's office came into the conclusion that the company's acts have brought about these wrongdoings. And therefore, we do need to tackle this shareholders' information and information to the market would be as complete as possible. And that's an area that Doctor. Tushar mentioned, where you have to limit the publicity of facts, amounts, names a lot of times, things that we were not able to mention, and we're not able to mention because of the confidentiality around the subject. But in this confidentiality environment, I believe the company was able to provide the market and as well as shareholders a deep amount of information in order to make this decision. And I can say it very confidently, the same amount of information and same quality of information that has been provided to the Board of Directors, so that decision was made in a way that shareholders have on their hands everything that they can have to make the decision. And that seems to me as enough so that this decision is ratified. Now we'll be by Doctor. Tushar here on this table to answer any questions you might have. Thank you. Very well. Thank you, Doctor. Marcelo Trindagi. And we'll now open the Q and A session. Once again, we would like to thank you all for your participation, especially those that are with us via webcast. So with people that we have here in this room and also our audience in the webcast, we have over 400 people. We already received few questions from the audience. Any questions here, whether for Doctor. Sebastian, Doctor. Marcelo or for the officers of the company. There's a question there. Good afternoon, everyone. This is Pedro Bruno. Good afternoon. I'm Pedro Bruno from Santander. My first question is about the PEIC, this Integrity and Conduct Program. Probably that's not only a question that I have, but what is really the incentive that 5 years of wages would give to top management person that probably has already lapsed the time of the facts that are being investigated. So why 5 years for that executive? And how can you consolidate interests of 15 different executives within this process? That's my first question. And if I can add to that, if you could go back, explained it, but I want to better understand it. And what you still need for this rectification, a little bit of the step by step of the process, both in the different prosecutors' offices. So I will start by your question on the incentive, on the encouragement. And then I will turn to Doctor. Tujao to talk about the step by step. Well, Pedro, you can imagine that this was a difficult negotiation, as all negotiations are. And in this case, we did face a lot of resistance to this negotiation. But coming to the public prosecutor's office. And now if they do not comply what they have agreed to do, 2 main consequences will happen, 1 with another one because they did not comply to their commitment with the public prosecutor's office because that's something totally different from what they had done in the past. But yes, I do believe they are very much encouraged to weather because this PSC program has relevant values or also because they would not be complying with the public prosecutor's office. They would not have signed this agreement with the prosecutor's office without the BIC program. But now they have 2 obligations. 1 obligation is to ourselves and another obligation is to the Prosecutor's Office. Well, I would add an observation that is really important. Well, with the integrity and conduct program because of the PIEC, these executives signed plea bargain agreements with the public prosecutor's office. And because of that, they will have to inform all wrongdoings that they have knowledge about, and they have to inform everyone that was involved in those wrongdoings. And the sanction for not fulfilling these obligations with the public or federal prosecutor's office is, on one hand, they will become accused. And the other side, they will lose any benefits, anything that they have gotten with the signing of this agreement. So I am sure that the PIC allows the company to have the better attitude with the inspection agencies because it takes from the testimonies of individuals, as I said, the objective of the agreement, therefore, not only it is certain that will be fulfilled because there is an agreement with these individuals and also because of signing these agreements, they also signed other agreements with the prosecutor's office with a matter that is of life and death. Because if it is proven that these people have lied or have omitted facts, they will be punished just as the same. So I do believe that this is the best practice that you could have for a perfect disclosure, both for the company as well as for the involved players as well as faction agencies. 2nd, the step by step you mentioned. In the state of Sao Paulo, what happens is a single file court judgment, a rectification that has been required, and it's in the conclusion process. I talked to the judge, and I am well informed about that. In Curitiba, the procedure is different. There, with the Federal Prosecutor's Office, there is an initial internal rectification, which is done by an agency that is a chamber that gathers some prosecutors. And they work leniency agreements and other competencies. And by the way, I feel very comfortable about the meeting that we'll have next Thursday when this agreement should be signed because this 5th chamber was previously consulted about the Menezi agreement that would be signed between the public prosecutor's office and the company. But this was a concern that we had with the prosecutors. And we have to consider something that Doctor. Talks about, and it is crucial for us to understand the real dimension of these agreements, which is actually the cost of the opportunity. So these agreements are good because of the contribution they add to investigations. If we come in too late, if we come in at a moment where investigations already concluded with other players already contracted, this commodity will lose value. And they might not even be signed. And it already happened in different cases. So our concern was with this suggestion that you just heard an initial consultation. And so that we know that once the contract is signed, rectified, after having this agreement approved in the Prosecutor's Office and this has an effect of the remediation area. And then there is going to be a rectification or a file court judgment, which is applied for penal effects. That is, once this is ratified judicially, it will have a clause that would then generate effects. And what does this clause state? It says that any person that has had knowledge, any person related to the company, to Norte in this case or to the group of which it is part. So any person that has any knowledge or has had any knowledge of any elements that might be added to the ones already provided by the company and consequently that might better drive investigations, they might ask immunity so that they can have that they can provide that contribution. Then the prosecutor's office will analyze the And if it is worthwhile, it will provide immunity to that individual so that they can have additional information. This is possible because the agreement was signed for penal and purposes in the federal justice system in Parana. Therefore, this is the step by step process. Well, just adding to what you said, Doctor. Tushal, the better demonstration of this agreement for me is what we have there in Parana. Where the other concessionaires that are involved, they are having very significant penalties. They have assets being blocked, also assets blocked from the executives. So this is a very clear sign of the advantages of this agreement. And I would add that companies that will have a hard time in participating in the rebidding process of concessions when the time comes, I think in 2021 or 2022. So the companies that still have a situation far from a final judicial decision, we will have a very difficult time legally wise and well as technically wise to participate in this rebidding process and the process that today they own the concessions. Well, adding to that, Pedro, something that I forgot to mention. These executives also will be able to maintain their prior assets because they will not be sued, not by us and not by the prosecutor's office. They will not be sued for damages. So not only what they will receive, but also they will maintain that. Even that if these amounts that we are paying were not enough to reimburse the company and the public prosecutor's office, they would lose everything they have if they were not signing the agreement. Any other questions? Vladimir Pinto from Kiron Capital. I have two questions. One is about the PIC. If in the investigations, it is clear that if anyone else out the company benefited from the process, we know that the executives will be exempted in case the company approves that? And if you have had any investigations for other contracts out of Parana and Sao Paulo, Are there any risks of another Lienic agreement being negotiated by the company? Very well. I'll start by your second question, and then I will ask you to ask again the first one. Well, if there are risks, well, information that we have today is that the existing wrongdoings have all been identified remediation correspondence that was already said. And so we're limiting ourselves to these two signed agreements. This is the information we have today. What about the first question? Still on the second question, Doctor. Ciorgio, I think and remember, all these executives tell everything that they knew, There is no geographic limitation or any other nature. And their agreement are the agreements they signed will be at a risk if something else comes up. So this is all up. They will be at a risk. So it's very little likely. About the controlling shareholders, I can give you the same answer. The investigations of the company shown that there were no benefits out of the company. Even the benefits for the company, it's questionable. There were wrongdoings, but they were of doubtful benefits for the company. But they were enough for the authorities to apply sanctions regardless of any benefits obtained. And I would stress that we as a company do not have the whole picture. The public prosecutor's office has that picture, and they might know about the benefit of a company, and the company might not even able to identify contract or an agreement on itself if they had found benefits for people out of the company. It would not make any sense, right? So once again, everything makes us believe that company has no problems there, but it really shows that there are no external benefits to the company. And to make it clear that what is being submitted now to the shareholders' meeting is that the There are no other rights or anything else being here at stake for our shareholder. Felipe Vinagre from Credit Suisse. A follow-up on this question. Can we say that in the committee and all clear bargains we have seen so far, there were no material facts that would have you looking for a leniency or an agreement with possible wrongdoing regarding other contracts such as Dutra, Bahia, Rio de Janeiro. These assets that as the market's understanding are not included in the agreement. These agreements are for Varanasi, State of Sao Paulo, and you have other assets that are not included. So can we conclude that the committee have not found any illicit acts or on doings there? I'm just stressing the question because I really want to make this topic very clear. That's what everyone wants to know. What I can state is this. The company, whether coming from investigations or whether because of a executives. The company has no elements that will allow it today to talk about the need of signing agreements, whatever else, for beyond the limits of Sao Paulo and what was the terms of mediation and also Parana. The company has no other indication that similar problems will demand solutions like that. A second question, if you allow me. This is a question for Eduardo. In his presentation, he taught organizational structure. I understood there was a major change in the company. And what caused this change? What was the pre change diagnosis that allowed you to change the system? And what is your function in this new structure? I understand that you have finance, legal, shared service center, people. So what do you foresee of improvements coming from this change? Because from what I understood, you did not have the structure before. And how do you compare that to other companies? That is, this structure came from a benchmark and so it's created this need. Well, before Eduardo answers your question, I have a similar question in here, and it came via webcast. It's from Mr. Alexandre Falcao from HSBC. And he's asking us what has motivated the reorganization, how this will bring operating benefits? And what are the plans? If you may comment on that, about changes regarding process and decision making with this new structure. Thank you for your questions. Basically, the creation of this corporate management VP will try and support and drive the growth opportunities that originate in business. I think that creation of these divisions has fulfilled an important role in terms of proving the origination. But to make that real, we need to have a corporate center, I would say, an area of corporate management that can work towards these opportunities. Obviously, there is another role we should try to find the different opportunities that you see in those areas. So when these divisions were created, this was something with the support of McKinsey 3 years ago. And we identified we clearly identified that of those 26 concessions directly connected to a corporate center to a holding, that's not functional, and it would not allow a close follow-up. That's why we created these divisions. But then once again, we need to have an articulation of this corporate center in order to drive growth and to make decisions about portfolio, about investments in different businesses, possible sales of businesses. This corporate center has this role, which is to manage the business portfolio. And in addition to that, we have the culture. As I said, the company is 20 years old now. Obviously, it is going through a new cycle. And it's going this is going to happen also for the next few years. The country has changed. The companies have changed. The business environment also has changed. And we need to prepare the company for this new cycle. And once again, this area has this role of preparing the company for a new cycle. I would like to add comments. This restructuring process was already forecasted starting in since 2016 when we developed this study with a consulting company. In 2017, our CCR Day, we had already shown that position. The decision of not implementing it right away was because we then decided that first we wanted to implement the 4 divisions. And after having the 4 divisions consolidated, we would be looking for the position. And that's exactly what happened. We implemented the division for a year, 1.5 years. We then decided to add to this reorganization in the way it had been initially imagined. The only new thing was the creation of the compliance vice presidency, which we didn't have in the past. It was already a compliance area working, but it did not have the status of a VP, and it was not related to the Board either. These are recent changes. There's a question there. I have two questions. The first one about follow-up on the PIC and the leniency agreement. And looking from the outside, I would like to understand, because here we are talking about a 5 year agreement in the PIC, is there a legal motivation because of these 5 years? And going back to risk, what have you considered materiality to define that in the other concessions you do not have this risk of a lenient agreement? And second question about airports. It's clear the opportunities that we see for Brazil and U. S. And about other opportunities. Let me talk about the materiality. This when we say materiality, this is the same term that we use in our financial statements, what we can consider to be material in terms of financial statements. So this statement is very much in line with our financial statements already published. And when we talk about materiality of additional values visavis the PIC, Maybe PIC is not even a material value in itself. I will be comparing that with the total amount of the PIC, right? The idea of these 5 years was to maintain the commitment of these executives over the period of the investigations that the prosecutor's office will be doing so that they will continue cooperating. And also, if anything else comes up, they will have to cooperate. If any other issue that comes up and we don't know about it, they will have to cooperate just as the same. If we were to pay everything ahead, if PIA said ahead of time and they would have to cooperate for 5 years, which is basically the period of time that you have for different purposes. And after that, everything else, no, there's lapses. Not that we didn't ask, but the company resisted to that, to paying ahead because this will then maintain all executives aligned. And the company doesn't have to make a full disbursement and discovers tomorrow, one of the executives for a reason or another might not have told all the truth. This is the main reason Doctor. Georgao wants to add anything to it. Before turning the floor to Lau to answer for airports, I have another question from Mr. Roberto. And the webcast, several opportunities have been presented in the airports segment. Are there priorities in this block, specifically Santo do Moll or Congotien? Well, first addressing Victor's questions about This is a project that was already being studied by CCR since 2012. We came into the conclusion, and it's the same government has and has been published recently that Sao Paulo, in a short period of time, will need a no alternative for airports here in the metro region. Viracapos is not an ideal solution for Guarulhos will reach its natural expanding increasing the size of Guarulhos is very complicated. You would need to take people away from the region to have a large to expand the airport. And the problem in Guarulhos, the main restriction in Guarulhos has to do with access. And with that, CCR has developed a project of the new airport of Sao Paulo, which we are calling an ASP, trying to find solutions also for access. In addition to the needed physical piece of land, we do need to improve the way passengers reach the airport. And then we are talking about Autobahn I'm sorry, Banderas and Ayahuenga that really would make the access to the airport much easier. So that's what we are considering about NASB. This is a project that we deeply believe in. Of course, it developed. We have to work on legal and regulatory matters to turn it into a possibility? But it's within our plans. And what was the other question about airports? Okay, the priorities regarding airports. Of course, that is here. It's greatly interested in participating in all the bring forward proposals. Of course, if those investments fit into our investment policy, If they are right to our policy, that will be part of the auctions. And just adding to that, this last auction, if we analyze what happened, it showed some important signs. The main international players participated in prior round, in the 5th round. This time now, they lowered the bar. It was caused off for poor. Also Zurich was not like that. Zurich was very aggressive in this auction. But that already shows us, at least that our understanding is that these international players came into the Brazilian market, but now they already see the Brazilian market in a different way. And they see that things are not as easy as probably they have imagined. It was very clear to us during auction because Francine Lafonti had bids lower than CCR. It is an entrant. It has a different strategy right now and it was very aggressive. But we will continue to pay attention and to participate in all these bidding processes in Brazil. Good afternoon. My name is Gostir. I'm an investor. Could you please explain the history or did you get to the amount to be spent? I would like to know additionally how you explain that other projects are still open in terms of possibilities because as I see it, there are new risks on the horizon or they might happen. The contribution by the company could happen, it could be replicated. Two points. What I have just said is that today, the company and its counsel that work in the negotiation process, both in Sao Paulo and in Curitiba, have no evidence whatsoever, no suggestion whatsoever that there could be any problem besides the ones that were reported, the Sao Paulo Prosecutor's Office and the Federal Prosecutor's Office. And this cooperation, well, these are very long term because they oblige themselves to report all the information. But on the other hand, you must keep in mind that anything that they say that is not true or anything that they do not review will be penalized very seriously by the prosecutors of the reason why we read the conclusion that all these people when they report the fact, they are reporting, in fact, all the fact because either way, it would be irrational to believe that with such a big risk, people would choose to only make available the information piece by piece or gradually. And this is why we are comfortable when we say that today there is nothing that may suggest that any problem will happen on the boundaries of Parana and Sao Paulo. You never have a total guarantee. What we have is concrete evidence that things should stay within the level that they are. And on the other hand, the negotiation of amount, which was your other question, this was a long battle. And I cannot fully disclose everything about it because of confidentiality with the prosecutor's office and they are pending ratification. But what I can say is that both in Sao Paulo and in Parana, the long process not only of definition of the scope and therefore the remediation amount and how this was going to be paid and what kind of currency would be used. And in Parana, because of the basket of currencies that I mentioned, the process was more sophisticated, I would say. But these were negotiations that happened 8 months in Sao Paulo, in Parana. In Sao Paulo, it was a little bit shorter, but it was complex all the same because it involved many variables. And this was the amount both here and there, the minimum amount for an agreement, the minimum amount for an agreement. We have a question from the webcast for to Leonardo Vierna. With the business pipeline piling up and the success of CCR in the auctions, what would be the limit to the appetite of your what is the maximum leverage that the company can reach? And management wouldn't imagine raising equity in order to participate in other options? Thank you, Alexandre Falcone for your question. In fact, we had the opportunity during our presentation that today, the company finds itself at a very comfortable indebtedness level. Our net debt to EBITDA ratio is 2.7 and what is acceptable and what we have already defined with our shareholders is that we could reach 3x net debt to EBITDA. And from BRL2.7 billion to BRL3.5 billion, this would give us an additional capacity of BRL5 1,000,000,000 and it would be more than enough to participate in most of the projects that are being announced. And as Eduardo said, if I'm not wrong, are some of them very important, they are still in the ramp up phase, mainly mobility, Air Force and airport. And our EBITDA goes up and up. And also with that, our capacity improves. So in a much more comfortable position than any other player or most of the other players. Regarding equity, we have a history. After the IPO, we have already had 3 follow ons, and it depends on the situation, the moment, the timing. So we will continue to pay attention to that, and we might go to the market for an equity issue. Lucas Mercari, Banco Safra. Two questions. 2 regarding Rory's side. When we do the assessment of CCR, you always have the 2006 addendums we mentioned. And this morning, we saw the Governor of Sao Paulo very favorable to investment. And if we compare the Sao Paulo state to sign linearity agreement, it seemed to me that Sao Paulo was more friendly in terms of achieving an agreement. Don't you think there is a window there for the company to have a more favorable situation for the 2016 addendums in the Doria administration because it's rebalancing of the suspended access. The balance okay? Lucas, I'm going to answer the first one, and then Paulo Angel will talk about the suspended access. You're totally right, the environment today is different. Just to give an idea, after Jean Doria took office, we, CCR, we met with him 3 times, once per month almost. And the subject that we are tackling with the Governor have to do with these things that have been dragging for a few years. And they are showing a lot of interest in terms of making strides in these negotiations because none of the parties is interested in continuing all these legal disputes. And I think they are favorable to this kind of negotiation, and we are starting to deal with that already. Just adding to what Leonard said regarding the suspended axles. We are negotiating ESP and the government of Sao Paulo State and the negotiations are happening. This theme is more difficult mainly when you talk about tariff adjustment and realigning tariffs, but the negotiation is being conducted and an amendment regarding the duration of the contract. So at any point in time, we might reach a conclusion about the suspended access that were not collected for or charged for last year. Another question? And then last one. First question regarding the PIC. I would like to know if the office or the authorities are aware of this agreement and what is their view regarding this? And another point is more qualitative. How do the other executives and the ones in CCRC, this agreement and say, well, I stayed here and I didn't do anything wrong. And how does it have to do with the tone at the top that was mentioned here? About the authorities, no, the mileage because it wasn't a bottom. This is something that is very clear for lawyers. This is an internal problem of the company. It was a way that it took a window of opportunity that was opened. As stated and was said to the authorities and prosecutors, yes, is that individual sentences, the amount that these employees had to pay, these payments would be made by the company, and these are part of the program that encourages the plea bargain. No, No, I'm sorry. The question was not asked on the microphone. But on the contrary, because it shows the company's commitment of effectively taking to all information available. Once again, I apologize because I'm assisting on this topic, but it's crucial to understand the rationale. I have people that were thinking seriously why they would have to confess things because they were already protected because of the lapsed time. So why going to the court? So once they went to the court, what would be the next would be of being completely correct and honest because they were getting benefits from the public prosecutor's office. And these are things that take time, and that's why this payment of the PIC would not be done in a single installment and I had. So the Prosecutor's Office being very nice. They have plea bargain agreements. They can apply strong sanctions, and they are sure that the agreements will be followed by these I told them that, that the company will be responsible for paying those amounts. I think it would be interesting to explain the dynamics. The prosecutor's office would not sign the agreement without having new information. And the only way of having this new information would be with a plea bargaining agreement because the company would not be able to address the questions and who benefited from this, who was involved, who received it and so on. And who is behind it and who requested it, and only those that participate know about it. So this previous negotiation of the company with the plea bargain players is implicit to the dynamics because if the company did not have this collective cooperation, this would not have happened. Prior cases where we had this collective cooperation and not a disorganized cooperation as we had seen in the past. And here, for us, this was an organized process by the and all the stakeholders are involved. So the public prosecutor's office know about it, and there is no surprise. Actually, prosecutor's office that something similar to this PIC would happen so that the plea bargaining agreement would have happened as it did. Well, when these former Well, when these former executives provide their testimonies, obviously, they have all the onus, Doctor. Chojao has explained, of not revealing the totality of facts and that the company has no control and doesn't even follow-up these testimonies. And people make their testimonies and they have their personal consequences. So for the company, this is way of contributing to clarify the issues. Obviously, this was a way of encouraging them to start contributing and helping the prosecutor's office. And after it starts, it has its own life with strong personal consequences of initiating the process for each one of these players facing the authorities. So once again, this was very important, and that was has been always what the company is working on, which is to find anything, any wrongdoing that have happened. And I believe that this attitude will be moved forward. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] I don't speak on behalf of my colleagues neither today nor ever, but I would like to refer to your question about tone at the top. What the company did as 10, 12 months and where the investigation committee and the assistants have been working on that and have been, it was facing these circumstances in a very clear and transparent fashion, which in my opinion are very specific to CCR, therefore. And we have just one side on vector of this result, which is the PIC that reinforces this tone over the company doesn't have a lot of attrition. It has quite small attrition. And in the last few months, 80 people left the company. So it's a very tough feasible process for everybody who works for the company. And this reinforces the tone, the tone that the company is committed, totally committed and no turning back and doing things right and cuts. And it seems to me quite the opposite. It seems to me that this reinforces the tone and the tone that the company can give to all the stakeholders involved. The amount involved, I'm going back compared to the amount that these executives received as long term salaries and bonuses. This is a way to try to negotiate and creating a way for them to be able to cooperate in this negotiation. But of the people who remain in the company, there is no well, it was worth it. No, not at all because it has to do with people's reputation that it has to do with all the penalties, the penalties that they are suffering. So the tone of the top would never be this one that this one way or another has some degree of tolerance on the part of the company. Let's go to the last question. Felipe from Credit Suisse, Pedro, about compliance and governance. You talked about the review of the instruments of government and control, governance and control. I would like to understand in the daily route team, could you give us hands on examples what changed in the daily routine of the executives in terms of sponsorships and donations relationship with politically exposed people and trade associations. Could you give us some practical examples of this change in the tone for the question? All the policies that you have referred to, they are being reviewed. We do not have in any of these policies an approval we do not have the approval final approval. And there are some practices that the company has been adopting or to this movement that we are carrying on. There is on the part of all the executives and people who work with for the company, all the associates, we always go to meetings with somebody else, with another person and very precise log of the meetings, the agendas, the teams that are discussed with the politically exposed people and the process will be facilitated by the company with instruments to facilitate the operations in this regard. And also, Marcellus, if you allow me, in order to find a noncompliance in the process. Although the policies are not do not have the final approval yet because we are still revising them in order to have the best instrument. We're already working on that. We're analyzing all our suppliers. Our supplier file and we have been reinforcing and we have concluded about 70% of our suppliers, they have already been reviewed and they have been reviewed in terms of risk analysis, compliance analysis. And as I said, many of these suppliers were blocked and some we are trying to remediate. And the objective here is to create the necessary tools, intelligent tools. We are not going to have a step in 18 months. We have to create the instrument so that we may be able to control and to monitor using the CCR database. And another point that I would like to add is communication. We were 3 born in April, we are 8, now we will be 11. And this group of people is has more visibility and these people will have their tasks regarding communication and we will be filling in the blanks that must be filled in the way we expect the process to be conducted. So this is an ongoing. It is still underway. There is no policy approved to show you into, but we are working at full steam. Thank you very much. And I would like to call Leuvina for the closing remarks. I know that everybody is hungry, but I only have one single slide here before I release you. These are the investment possibilities. We have already talked extensively about this, and I would like to focus on this last slide, why to invest in CCR. First of all, our history shows that we have a strong Capital Markets. And this was very well emphasized by Eduardo and we want to use this potential that we have in order to seek new businesses and seek new investments. We also have a shareholder base, which has a long term view, very well aligned investment policy and with our premises. And so this gives us a very big strength in terms of seeking additional growth. And we want to emphasize more and more our associates. They are more and more skilled and qualified. We invest a lot in our people. And today, we are differentiated operators in our highways, and this is recognized by our users in the subway lines that we operate and we seek excellence in our operation. And you can only with our associates, our sound financial structure. Undoubtedly, this has already been shown our capacity to really make these investments. And our predictability, another relevant factor for investors, our capacity to dividends, a very consistent one. And this is very attractive to investors. Our clear strategy, it is well defined, it is public, and we have very sound fundamentals, our decisions, our investment decisions. So a policy that is extensively discussed and reevaluated from time to time with our shareholders, a robust dividend payout, as I said. And undoubtedly, the market where we operate has a very big appetite in the business itself or the market itself by means of project development, developing different differentiated projects with adequate profitability. And this is why we want to invite you all to continue to invest in CCR. And regarding the point that was raised, complied and the tone at the top, of course, CCR is totally dedicated to the best compliance practices. And this is the reason why we decided together with our shareholders to reinforce this area and inviting Pedro to join the factory in this activity. And we want to put in the minds of all our associates that we have to seek the best practices always. This is very clear to us. It goes from the CEO and down to the base of the pyramid. And this is a constant reminder. All the problems that we had happened before 2014. So this has been put in practice for many years. The events that were brought by the media. They precede 2014. So our recent practice is already along these lines. I would like to thank you very much for your presence and thank those who are participating on the web and thank the participation of our controlling shareholders and our Board members, our Governor, Natalia and Marcelo Trinidad, Sebastien Tushaud, join us for lunch. Thank you.

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