[crosstalk] I would now like to give the floor to Mr. Eduardo Parente. Please, Mr. Parente, you may proceed.
Good morning, everyone. I hope you are all doing well, as you saw yesterday and today in the communication media and reports of various analysts. We are announcing a transition at Yduqs. I am passing the baton to Rosana. I think this transition is extremely positive for the company. From time to time, companies change leadership. More or less, I'm a CEO for 16 years. I'm a board member of other companies. I've been a board member of other companies. I've been a consultant for many years. I've seen many transitions, but I haven't seen such a smooth, well-planned, and well-performed transition as this one. We have an opportunity of oxygenating, taking a leap even further of what we have done.
I think there is a recognition of the board, the market that is clear regarding this leadership team. To bring Rosana is a natural movement. Those of you who follow us in the market for a long time, you've seen how much we have been moving hand in hand, how much we are aligned in terms of values of what we want, both for Yduqs . and for education in Brazil. A process that has been planned for a while. It has been envisaged that it should take place, and we've worked very well on this. I think it is a transition that, obviously, the change is important. We want to make the change. Companies change all the time, and a new person that arrives has even more ability of changing those that are in the position. This is very important.
Rosana is a person that not only has financial experience, that you know well, has operational background, that is strong in technology. That is a challenge for all companies, particularly in education. We are proud to lead this initiative thanks to Rosana's work for many years. In addition, she has very strong leadership. She is a person that knows how to be tough, but at right times, when you're dealing with budget and finance, at some times you have to be tough, and you have to be very respectful and very caring for our 16,000 employees. Are you getting, you know, the shivers? Yes, I'm happy. It's an experience, you know, transition, giving continuity to our strategy, you know, reassures us. This is the main message. We are proceeding or continuing, and this reaffirms the strategy of the company.
This is a transition that does not highlight the change, the strength of the strategy in the past seven years. We were together in the beginning. I told the market about it. I defended all our strategy. I'll keep on defending it. There are great things to be done, and we don't change values, beliefs, and the strategic positioning of the company. I'm very happy to transition in this way. I'd like to openly thank you for the whole process of seven years building together. It's a great joy to have been part of this winning team, and your leadership has been very inspiring throughout the time. You gave us the North Star at hard times, at very happy times, and the tough times. You see the good leaders as a good seaman. You've shown that rough seas build good sailors. We are here with our new IR Director.
Most of you know him. We can tell you anything. We're open to any questions that may come up. Once again, I'm very happy to take this position. I'm humbly happy and proud to be able to take on this position, but humble because I know that everything that we have been building is the work of everyone, professors, with students. We are mere managers here, but those that actually make Yduqs . shine in all its brands are our teachers, professors, the service team, the customer service team, people prepared for this audience that we work with. Before we open up for questions, I'd like to say that this is a time for breathing and opening breathing room for the market. We have acknowledgement of the market of this leadership team and all those of you, Marcelo, Claudia, Camila, and others.
Many of you know that are spread throughout the management of the company as a whole. This is very important. I have been invited to continue collaborating here as a board member. I was appointed yesterday, so I'll still be around offering a little that I know and a lot of my energy in this process. This is the best way of making a transition. We know that you keep supporting us and our board very strong, very well prepared. It will be even stronger with your presence. I feel very comfortable with it. Do you have any questions? There will be. Where are they?
[crosstalk]
If your question is answered, you can leave the queue.
[crosstalk]
[Foreign language]
Good morning, everyone.
[Foreign language] .
Congratulations, Rosana, on your new position. Congratulations [crosstalk] . Congratulations to all of you.
[crosstalk]
Especially on the differences where you plan to innovate.
[crosstalk]
Some comments that were on the press.
[Foreign language]
I don't know if it was an interview with Parente or both of you.
[Foreign language]
There was a bit more expansion there.
[Foreign language]
Moving to a new position, expanding. I'd like to hear from you.
[Foreign language]
How do you see that?
Thank you, Marcelo, for your question.
Marcelo has followed us, at least throughout my whole journey, always following this industry.
Again, thank you for your question and for being here. [crosstalk]
The freedom of starting with the answer, again, to reinforce that the change in management does not change the strategic position anymore. What we are reinforcing is our strategy, and we're going to continue with it. It is a constant innovation strategy and expansion of our capabilities. We are at a challenging market time, as several others we've faced over the seven years of the company. At this time, we always seek the new avenues, the capabilities we have. This will continue happening in a fast way. The story mentioned very well the pathway of growth that we sought, we have been seeking, and we're going to keep on doing that with the discipline we've always had. Our strategy of capital allocation, we actually disclosed on our Yduqs Day, keeps being the same. The focus of the company is a focus on cash generation.
We have the capability of keep on supplying its ability to grow, find our growth pathways, continuing what we've done in the past seven years. This is ten times more complex and capable than it was seven years ago. It was a mono-brand, mono-business. This is learning very beginning. We had medicine that was quite new, and today we have a very much more complex company. Today we acquired Ibmec, and it's a multi-business company, and we have lots of dynamics. Marcelo, one of the strengths of Yduqs . is this diversified portfolio that helps us actually stay on different stages. Certain industries or sectors are on a hype. They may be weaker in the future. Each one is thinking about their business strategy. [crosstalk] , who's in Estácio, he knows he will keep on leading with it and dealing with all the challenges that now.
My seat and my task is to help him invest and ensure that the opportunities will be winning and keep on leading our business with the same discipline as we've always had. We have no news of change. The news is of continuity. Continuity brings lots of changes all the time. That's what we'll keep on doing.
Perfect. Thank you.
Our next question comes from Mr. Samuel Alves from BTG Pactual.
Our next question from Samuel Alves, BTG Pactual.
[Foreign language]
Good morning, Parente.
[crosstalk]
I'd like to.
[crosstalk]
Again, I wish you great success.
[Foreign language]
I can start.
[Foreign language]
This is learning, medicine.
[Foreign language]
This is learning, and I have been.
Our priority, if you look at it, 82% of our EBITDA of 2024 came from business learning, medicine, and the acquisitions we made.
[Foreign language]
[crosstalk] BRL 2 billion in 2017, and we moved to five , it's great growth with those levers.
In the last Yduqs Days, we talked less about this, this two-digit growth that we saw. This is learning on medicine and quite.
[Foreign language]
Lose or 11, and it was a different reality. We worked a lot on gaining levels of freedom with great cash generation, controlling our debts. Obviously, we are going to cash generation that is quite strong. You write quite well about it and are having different freedom. The growth difference, the opportunities perhaps are not so gigantic as those three. They were very obvious there. With M&A, it's quite different with the interest rates that we have today and the level of indebtedness that we have. The focus is different from what it has been. The mantra actually worked very well until last year's Yduqs Day when we understood the potential. All of you complained with us when we changed it. Now, this discussion from EBITDA to net income.
We not only did that, but also the cash generation that ultimately is what matters, and we'll keep on delivering that a lot. I'm reinstating that. This is it, the mantra. We had been adjusting those focus on Yduqs Day, and the last one did not bring those three verticals and priorities of a company. When we launched the mantra in 2019, medicine was small in the group, and today it's very relevant. It doesn't have to move from almost nothing to a lot of things. We have challenges and opportunities there. M&A was in last year's Yduqs Day that was focusing on opportunities. We'll keep on observing opportunities that may arise. Obviously, the ability that we have for cash generation will place us in a time of great opportunities ahead.
When we obviously have more adjusted cost of capital and a lower indebtedness level, we certainly will be better positioned for the right market conditions to resume this position. Brazil is not so uniform as that. We have to react to current market conditions. Specifically answering your question, we have some adjustment there because of what's happening. It's not because we're changing the CEO's seat. Now, we'll change strategies. As I mentioned, I would change the strategy that would be, you know, electoral. I'm happy to be here with you. We are part of this strategy. I've been part of it, and we'll keep reinforcing our beliefs and values when we have to adapt very quickly. This is the future of Yduqs . This will keep on being. It's a very innovative company, and all its moves are very bold, but conservative in its capital strategy.
It manages to do things correctly. We'll keep the identity.
Thank you, Rosana Lobão. Great success. Thank you, Samuel.
Our next question comes from Mr. Caio Moscardini of Santander. [crosstalk]
Good morning, everyone. First, congratulations, Parente, Rosana. I wish you success. [crosstalk] was very successful in transforming Estácio into a multi-brand company that marketed a broader cycle to build those three pillars. This is learning.
The in-person or campus and premium segments are very well consolidated. I'd like to know what will be the next cycle of transformation in the company in your journey as CEO.
Thank you, Caio, for your question.
In the next cycle, I hope we have the same number of victories that we have had over this period that we've had Eduardo with us. I hope it is similar to what we've had with Eduardo too. Guess what will be? It's very difficult. I can tell you what we see, what made us very excited about the future. We're very excited about technological evolution in the world, especially speaking more generically when we talk about artificial intelligence. We're certain that Yduqs . will be one of the leaders in this process, not a mere agent in everything that is happening. We've done several times in the development or progress of Yduqs . We're going to be the North Star in terms of AI as a great transforming agent of education globally. We have three success aspects that I'd like to talk about now, Caio.
One, what are the best ways of teaching students? AI as a booster of this way. How should I teach students? How can AI help me in this process of teaching? How can I prepare our students for this new world? What is a social agent that should come out from the Yduqs . institution better prepared for this new world? How can I use AI to improve the company's operations? How can I be a company that is more capable of making changes, generating more efficiencies in its structure with AI? We have several fronts in each one of those verticals. We have this feature that was Eduardo's, not only of Eduardo's, but the whole management team of first doing and then talking. That's why we don't talk so much about it. It's a great focus of the company.
I'm sure that it will be one of the factors that will outline the story of the company in the next years. Thank you very much, and good luck. Thank you, Caio.
[Foreign language]
Next question from André Salles, UBS.
[Foreign language] [crosstalk]
In the past few months.
[Foreign language]
It's up to you.
[crosstalk]
The guidance in light of this change will impact.
No, nothing. No changes to the guidance. What we believed in the past is not impacted by the change.
The guidance will be impacted over the year based on what happens in and outside the company. That's why we have the commitment of updating you every time we have our earnings. We keep on performing within the plan that we've always had. As I said, nothing changes. The transition has nothing to do with our guidance. I don't know if I quite understood your question, but what has taken up my schedule over the past year is to prepare me for the transition.
Yes, that's it.
Very little has changed. I have gone more deeply.
I was actually involved in strategic planning. Looking at that allows me to be closer to all kinds of businesses. I spent a long time with Aroldo talking about Estácio and Silvio, talking on medicine, and also Ibmec to give more depth to how does it knows every business in depth. This is super important. Obviously, in this position, we have a multi-brand, multi-business structure. The owner of Estácio is Aroldo, of medicine is Silvio, and Ibmec is Reginaldo. We help them a bit to actually lead those businesses. This has been the main focus in the recent times. In my previous position, it was. I have to be closer to them. In finance, you are a bit further away from the day-to-day of students. That's something I love to be at the forefront.
Looking at the reality of our students, I've tried to do a bit of that for now. Though it's been a bit harder in the past few weeks with the new schedule, I hope I managed to do that. Let me add something here that I think is important. Something important is that Rosana has been, has taught here, has been face-to-face with students. We shared a class together, and he was, I was kind of busy, and he actually led the team. He's been in-house for seven years. Background in operations, technology, and finance is the tripod we require here. We have a world of very skilled people in the organization. Just to exemplify, Alessandro, our new CFO, is a guy that has been at Itaú, McKinsey, Financial, at Barclays. He's been here for five years, as you see, as our P&A.
That you have the ability to say, our bad debt, it was a bit like this in the second quarter. When you see personnel cost, this accuracy we've gained in the past two, three years, to have very open dialogue with you, or even more open to you, comes from Aquino's work. Actually, the number of times you've seen myself and Rosana together, you probably, maybe you have never seen us separate. It comes from a cautious planning and a great sound governance that we have within groups with that. We were joking yesterday. Rosana was joking that we should call it Bebeto and Romario in the internal communication. To Vasco's supporters, it was a bit difficult for us. We have been moving hand in hand all the time. We sit side by side.
We have this affinity of thought and value that is great, with opportunities being open for people in the company. To go back to what he said in the beginning, to keep on changing a new guidance to make more changes. Technology is extremely relevant. Rosana is bringing it up along with marketing, growth people, so that we can look at integrated projects in a different way of delivering contents to students. There are many cool things coming ahead. What have you done in the past six months? He spent time with me. We have been together for a long time, about six months. No, actually two years of Bebeto and Romario to sort of have this sort of analogy.
[crosstalk] Thank you for the answers. I wish success to both of you on your next steps. Thank you.
[Foreign language]
Next question from Vinícius Figueiredo from Itaú BBA.
[Foreign language]
Good morning, Parente.
[crosstalk]
Congratulations on the migration, Parente. Success for both of you in your respective positions.
[crosstalk]
I'd like to address this with [crosstalk]
I think there's a [crosstalk]
If you don't know it.
[Foreign language]
Board members are very high level, with different backgrounds, from very profound knowledge in education, finance, market, technology. It's a team that I have to.
Make an effort to be there along.
Great advantage that I have deep knowledge of the business and now need to disconnect, give some room for those that are arriving, Rosana and the rest of the team, all of them growing in their positions.
[Foreign language]
To perform.
Obviously, I'm close.
[Foreign language]
At one call.
[Foreign language]
The distance, I have an important relationship with the government. I follow regulations closely. It will be a bit.
[Foreign language]
To support them. [crosstalk]
We tried to do good things. [crosstalk]
We did not reach an agreement.
A win-win on both sides. I think it's an important.
Opportunity is.
Little consolidated business, there's nothing exciting that we're even starting to negotiate now. It's kind of a cool moment for that. Perfect. You answered precisely that very well. He asked about regulation or changes in the way the focus zero. When you make a transition in-house, one of the strengths is the advantages is this. If we don't change the focus or anything, we keep on working the same way. This is the message about the organization. There's no strategic change. We keep on the same focuses that we had. We're prepared for the new regulation. This is still one of our priorities. We are in a regulated industry, so changes will be made in regulation. We've been a nation in the transformation process. The direction is better quality for our students and our tasks to adapt in the best way possible to keep on fulfilling our mission.
The focus is 100% on those missions. Nothing changes as it's been programmed. As Eduardo mentioned on the opportunities, we keep on believing. He did believe. I think it's important for the industry of future consolidation. This changes nothing. Actually, nothing is in the pipeline. Just on regulation, we face it as something extremely positive, the regulation that came up. Specifically, there are adjustments here and there. We've been very vocal on this. We have the legal framework approved. Many practices that are part of the framework have been part of what we have in-house. Somehow we were commercially hindered by other companies that did not have the same practices. Somehow the intent of the government is clear, as we saw in Osana. We want to provide better quality to our students. We have more uniform practices and higher deliverables practices.
The legal framework can be seen as something negative, a source of concern. It is not. It is positive. We have adjustments made, but from the financial standpoint, a lot has been done based on practices that we already have.
[crosstalk]
Thank you very much for the answers. Success. Thank you, Vinícius .
[Foreign language]
If you want to ask questions, you click on raise hand. Please wait while we collect questions.
[Foreign language]
[crosstalk]
Thank you, everyone. Thank you for the trust you've had on us. Keep on having it in the past seven years and keep on having it in the future. Thank you very much. Those of you who have invested in us, those who have believed in us, we have a very strong trajectory of delivering what matters from the shareholder standpoint, which is cash flow. We keep on strong dividend payers. We had a buyback program that was very successful last year, deleveraging. That allows us to have options to be the owners of our destiny, tap into the best moments of the market. We have a very strong tradition here over these seven years of making capital allocation in a very responsible way. Very good businesses.
We are moving into a time that is very interesting for the market. Difficult year, 2025, but building 2026 that is positive and increasingly more, as I said. We are responsible for our future cash generation and generating better profits for our shareholders. Welcome. Congratulations. It's an honor to be with you here. You're the guy, and I'll keep my eye on the baby. Thank you all very much for being here. It's a great honor to take on this position. Keep on the same strategy, discipline, and capital allocation to tap into our growth and leading this technological transformational world we've always had. We've always been a winning team, and we'll keep on being. Thank you very much.