CVC Limited

Good morning, everyone, and thank you for waiting. Welcome to the Conference for the Publication of the Results of the Second Semester of 2024 of CVC Corp. I highlight those who need simultaneous translation, that we have this tool available on the platform. To access, just click on the Interpretation button through the globe icon at the bottom of the screen and choose your language of preference. Portuguese or English. For those listening to the video conference in English, there is the option to mute the original audio in Portuguese by clicking on Mute Original Audio. We inform you that this conference is being recorded and will be available on the company's RI website, www.cvccorp.com.br.ri, where the full material of our results is available. During the presentation of the company, all participants will be with the microphone disabled. Next, we will start the question and answer session. To ask questions, click on the Q&A icon at the bottom of your screen and write your question to enter the queue. When announced, a request to activate your microphone will appear on the screen, and then you must activate your microphone to ask questions. We advise that the questions be asked all at once. We emphasize that the information contained in this presentation and any statements that may be made during the video conference related to business perspectives, projections and operational and financial goals of CVC Corp. constitute beliefs and premises of the company's administration, as well as information currently available. Future considerations are not guarantees of performance. They involve risks, uncertainties and premises, as they refer to future events and, therefore, depend on circumstances that may or may not occur. Investors must understand that general economic conditions, market conditions and other operational factors can affect the future performance of CVC Corp and lead to results that differ materially from those expressed in such future considerations. Today, we have the presence of the executives of the company, Mr. Fábio Godinho, CEO of CVC Corp, and Felipe Gomes, CFO and DRI of CVC Corp. I would like to give the floor to Mr. Fábio. Please proceed.

Good morning everyone, this is Fábio Godinho, CEO of CVC Corp, and I would like to thank you for your time and presence here. Another presentation of our results, this time the second quarter of 2024. This quarter is a very important quarter for us, since we completed, at the beginning of June, that is, in the middle of the second quarter, a year of the new management. And this year is when it starts to mature. And we start to have, in our numbers, more important, more remarkable reflections of all the strategies that we have been putting since the beginning of these last 12 months, from the beginning of June 2023, when we went back to the company. So we made all the changes within those four pillars that we always talk about, governance, culture, executive team and strategy. Within the governance part, as we know well, Today we have a reduced council than we had before, with a deep knowledge of the tourism market and also of the financial market, thus giving much more assertiveness and agility in the decisions da companhia junto com o management. Isso sem falar no alinhamento de interesse entre todos os acionistas minoritários, uma vez que hoje no Conselho a gente tem os maiores acionistas da companhia. Então isso tem um alinhamento... very important to go forward, something that we value too much. Without a correct governance, no other aspect could have a positive impact. Governance is fundamental and we have always had this vision, the first thing we organized in the company. The second point is the return of the appropriate corporate culture, the culture that CVC Corp has always had, a culture of sales, a very strong culture, focus on execution. of proximity with the tourism market, with our franchises, master franchises, with travel agencies and with suppliers, and mainly with a pride of belonging by part of our team, of all our collaborators. So, it's about this pride of wearing the shirt of the CVC Corp brands, be it in Brazil, seja na Argentina. Então, governança que foi ajustada, cultura corporativa ajustada. Obviamente, o time executivo da CVC, CVC, como a gente sempre fala, é uma companhia leve em ativos, uma companhia asset light, então o time de gestão, ele é determinante para os resultados da empresa, foi determinante até agora para essa virada dos resultados da empresa nos últimos 12 meses e certamente fará muita diferença dentro da estratégia que nós estamos colocando pros próximos anos, né? Então, toda essa movimentação que nós fizemos nas peças aí do time executivo, isso tinha um efeito muito grande, mas não só nessa primeira linha de report pro CEO, né? Que hoje são... São 12 reports diretamente para mim, mas também em todas as 170 funções de liderança, né? Primeiro, a linha, segunda, terceira linha de report. Hoje a gente não só tem uma linha de comitê executivo muito fortalecida, né? E com os melhores profissionais de mercado dentro de cada vertical que tocam, mas também os níveis de baixo. Então, uma estrutura hierárquica para... sucessão desses outros cargos muito fortalecida e pronta para os próximos anos. E por último... the issue of strategy, as we always say, exclusive product, alternative form of financing, Fijita model sales and stores in the countryside. Exclusive products, little by little, we've been improving and you will also see, again this quarter, another significant improvement due to this and other actions also of the company's operational cash generation, there is already an improvement in the dynamic of turnover important now in the second quarter. Remember that we always say that there are the three gears for the company's cash generation, the take rate, the expense, the CAPEX and the OPEX, and the working capital for the company's operational cash generation. The take rate, the CAPEX and the OPEX had already adjusted and the working capital as a balance account, It takes more time to be adjusted, despite the working capital. This dynamic has already been much better in the last few quarters. It had not yet been positive, which was now in the second quarter. So, very much in function of this strategy of exclusive products, which not only improves the company's financials, the generation of operational cash, as a strategic point, owner of the company, so very, very favorable, which are products that only have in the CVC store, exclusive negotiations, both air and land, national and international, within the company's main destinations. The second fundamental point of our strategy, and that has also had some positive effect, will have more within the next few quarters, but it has already begun to have some positive effect not only in the working capital, but also in the top line stimulus, especially in B2C, forms the financing alternatives. not only the CVC table, something that we will not extend this penetration of the table, we are at a very low risk of inflation in our portfolio today, and we do not see an increase in risk, nor a very representative increase of what we already have today, but there are many banks entering our marketplace, many additional financing forms, Felipe will talk a little bit more about it later, So this also has a stimulus from the dynamics of the working cap, because we have a tendency to reduce the exposure of the CVC table, and also a sales stimulus at the end, because there are more people wanting to finance our clients, the packages for our clients, o que é muito importante. Então, dentro do propósito da CVC, como a gente sempre fala, nós somos uma empresa de turismo e o nosso propósito é prestar assistência ao nosso passageiro. Então, dentro de prestar assistência ao nosso passageiro, também uma parte da assistência é ele ter maior flexibilidade quando ele for pagar o pacote para uma família, que hoje é um ticket médio relevante, for any Brazilian family, it is very difficult for people to travel alone, so this bill comes for one, two, three, four passengers, so it is really an important ticket, and as a service to our passengers, it is also important for us to remove this family from the limit of the credit card and not consume this limit that today families use for consumption within their daily expenses. and not your annual vacation. That's what we want, to have these differentiated ways of financing and this is already happening. Third point, the sale of FIGITAL. We are improving more and more, we are gaining relevance in stores, the conversion is increasing, the lead acquisition cost is decreasing. So, we see a very important and positive learning curve here within sales. It is also an important factor of this very good growth that we had in the second quarter, especially in B2C. So, a lot of this is due to the improvement of FIGITAL and, finally, stores inside. We will talk a little bit about this later. The implementation of the strategy is already in rapid growth because Fiji, along with new store models, allows CVC to leave the previous strategy that it had before the pandemic to enter only in cities with 100,000 inhabitants, because it depended on 100% of customers to physically enter the store to buy. your package of travel. Today we can enter cities of up to 15 thousand inhabitants, we already have several examples that we opened stores at the end of last year and this year, well-known stores in cities between 15 and 25 thousand inhabitants, which was a new market for CVC, right? That opens a huge, huge market for CVC, we will be able to open stores in almost half of the municipalities of Brazil, when before we could, with the previous model, a model that was 100% physical, not digital, we could open stores in, at most, 10% of the municipalities of Brazil. We put this, this addressable market, times five. So this was the second quarter that we will start talking about the main highlights now. Well, going to the highlights of the results of the second quarter, we divided here a little bit in growth, profitability, and governance. In this quarter, we opened 60 stores, adding Brazil and Argentina in the second quarter, surpassing the historic mark of inaugurations at CVC Corp. Never since the beginning of the company's history All the companies together had opened 60 stores in a quarter. And also in a semester, CVC Corp has 90 new stores between the first and second quarter, which is also a record for the company. Closing, as we said, and entering a closure within a normal speed, they closed 12 stores, 6 stores in each quarter. So, it accelerated a lot the opening pace of stores, we already beat the quarter record of the history of CVC, we beat the quarter record of the history of CVC, within the normalized level of closure of... And also the important number, we opened 5 stores in Argentina in the first quarter and 6 stores in Argentina in the second quarter. This is super important to see this commitment of our base. de franqueados na Argentina, mesmo em função de todo o aperto monetário que está fazendo o governo local, a gente abrindo 10% de novas lojas da base que existia. Hoje a gente está com 125 lojas in Argentina, where we opened 11 stores in the first semester, a very turbulent economy semester, showing the resilience of our business. The highlight that we had here in the growth part this quarter was 16% growth in the confirmed reserves of B2C. We were coming from a more flat quarter due to the difficult comps that we had in relation to the first quarter of last year, which was a very large growth, but with a negative margin. We privileged, as we always say, margin due to the growth that was in the first quarter of last year, this year, and now we're back with profitability to print an important growth of 16% within B2C. We are talking about a same store sales in the 10% range. All the numbers, including all the problems and the catastrophe that we had, that Brazil had in the state of Rio Grande do Sul, que pegou cheio o mês de maio e o mês de junho, né? Pegou dois dos três meses, né? E dentro do B2C, as lojas do Rio Grande do Sul representavam 7% do nosso faturamento. Se a gente excluir the effect of Rio Grande do Sul, only the sales, not excluding the landings, the loss of sales for the landings in Gramado, this is not excluded, but only the sale of the stores of Rio Grande do Sul, the rest of the stores in Brazil, grew 21% from the second quarter of last year to this quarter, also taking the effect of Rio Grande do Sul, we have left a semi-sorcery of 10%, to 12%, that is, it was a month of quite solid growth. It is important to remember that, according to ANAC data, capacity within the domestic market grew by around 3% and the yield of domestic airlines in the second quarter fell by 9, 9.5%. So, the domestic market is falling globally, in terms of aviation, in the second quarter, versus the second quarter of last year, and the CBC winning 16%, which already starts to signal an acceleration of the market share gain. The international market also, in the second quarter, had a drop, of the rates of the order of 14% and 15% overall. So, it's a market that has been falling in price throughout this first semester, and then it has been stabilizing in smaller numbers, or flat, compared to last year, and then CVC starts to demonstrate a share gain, but with rentability adequate to the capital investment remuneration. This is a respect that we have, and that we have always confirmed this issue of not making growth at any cost, we prepared ourselves with adequate take rate, with exclusive products, within an adequate team, and then we start to deliver a better growth dynamic, with adequate profitability and with a better working capital dynamic, as we will talk a little later. Another important point here to be mentioned is the growth of the liquid revenue, which is the revenue that comes from the company's take rate, which grew 21% from the second quarter of 2023 to the second quarter of 2024. This shows a new market share gain with the recovery of the take rate. So, increasing sales, increasing the take rate. B2B is a... A clear example of this recovery, we are closing a gap that came in function of that comparison with miles and the organization that we did right at the beginning of last year, of the customer portfolio, customers with inadimplency that we took from the base, customers with very low or negative profitability that we also took from the base, and this at the first moment had a drop, of gross books, quite significant, but that was not reflected in the fall in profitability. Quite the opposite. So, as we had the strategy of returning to the separation of brands, we came, little by little, reducing the growth gap a lot, but with a profitability much above the previous year. A good example here, obviously, is the RA. The RA, in the first semester, In 2023, it presented a negative EBITDA of R$ 2.2 million. In the first semester of 2024, the RA is giving a positive EBITDA of R$ 58 million. This is only the difference of the first six months, even with a 10% drop in Gross Bookings, but with a drop of 10% in gross bookings, an increase of 40% of the liquid revenue and also a reduction in expenses. So it comes out of a negative 2 million EBITDA to a positive EBITDA of 58 million in the first six months of this year and now already... não tendo esse efeito da comparação com os milheiros, e também já voltando a tracionar e ganhar cheiro dentro do mercado de consolidação, a gente já mês a mês deve começar a apresentar números positivos já de comparação dentro do segmento do B2B, aí no terceiro trimestre e também no quarto trimestre em diante, ou seja, a partir desse segundo trimestre a gente já deve ter top-line gross bookings positivos. Bom, no tema de rentabilidade, o primeiro ponto é a manutenção do take rate dos patamares históricos desde que a gente entrou nessa faixa de 9%, então crescendo 1,6% versus o segundo trimestre de 2023, já nessa faixa que a gente entrou. that we have been positioning the company since the third quarter of last year, a very important adjustment EBITDA turn, but even so, with the adjustments being much less representative, we had a lot of balance adjustments, cleaning the house, fixing the balance last year, and this year, as well as the closing of stores, the adjustments in the P&L to the adjusted EBITDA, the non-recurring, are much smaller. So, for example, we presented here 70 million EBIT within all the companies of CVC Copium, an improvement of 87 million reais against the second quarter of last year. Just for you to have an idea, only in Brazil, the companies in Brazil, B2B plus B2C, left the second quarter of 2023 from a negative EBITDA of R$ 30 million to a positive EBITDA of R$ 60 million. in the second quarter of 2024, a turnover of R$ 90 million, only in Brazil's numbers. You also have, in Argentina, a quarter that was the worst quarter of the year, a quarter in which consumption, due to all the restrictive measures of consumption to lower inflation, which has been successful by the local government, but logically with a profound impact on the consumption of the Argentine people, and obviously within the travel segment, which is a discretionary purchase, it is impacted, even though it is In the worst quarter of the year, Argentina had a liquid profit of R$ 25 million, only in the second quarter of 2024, and positive cash generation. This shows the resilience of our business model also in Argentina. that even in the prior quarter of the year, gave a very substantial number of liquid profit, generating an important cash flow for the company. In Argentina, we also had a drop, gross bookings in the second quarter, also in the first quarter, but there were two factors, let's say, more or less half of this drop was due to the drop in the effective volume of sales, in quantity, in value, in the passes, and the other half due to the reduction of travel taxes, so the taxes, this does not impact the part of profitability and liquid revenue, which is just a pass-through in our panel, but the other half, this one, has an impact due to the reduction in the volume of sales, although we have already seen in recent months, in recent weeks, an improvement little by little, so we believe that the worst is behind in terms of the demand for travel in the Argentine market, and this year we are not only seeing a recovery of the volumes in the last weeks and months, as in this first semester we had a relevant market share gain according to IATA data. So when we recover, and that's what we're feeling now, we'll have a position in terms of market share in the Argentine market much more important than we had in the same period last year, 12 months ago. So, this is in relation to our operation in Argentina. Cash generation of 35 million reais, already counting the cash generation of EBITDA, already discounting the expenses with CAPEX and also discounting the variation of Working Capital. This is the highest number, the highest value of the cash generation of CVC Corp in the last 18 quarters. And, at the end of it all, which is a very relevant agenda for the executives here at the company, the adjustment of the company's capital structure, the structure to unhook the company. So, in the second quarter of 2024, we also had a reduction of R$ 345 million in the company's liquid debt compared to the second quarter of 2023. Well, in terms of governance, we had the election of Matheus Bandeira, who was already our advisor and a very active one, he has been getting to know the market and the CVC business model more and more every day. Today he is very present, he has participated in all the main discussions together with other advisors, Gustavo Paulos, but quite present along with the management, we chose Mateus as the new president of the board of the administration and once again CVC ranked as the best score of all tourism companies by the RA1000 board within the site, which is the reference of NPS for consumer, which is the claim here. So CVC, within its greatest purpose, which is to provide assistance to our passengers, this is an item that we value a lot, to be a leader in terms of quality and NPS by our customer, and we are already in the third consecutive quarter with the R.A.1000 seal of the claim here. Well, it's nice to mention our solidarity campaign that we did for the victims, due to this tragedy that affected the state of Rio Grande do Sul. As soon as we had this news of practically the closure of Salgado Filho, Salgado Filho closed on the first days of May. We only had one month within the second quarter. We talked to CEO of Gol, CEO of Azul, CEO of Latam, and also in a partnership with Jamef, one of the largest land carriers in the national territory, we made a campaign where all CVC stores worked as points of collection of donations for families affected by the Rio Grande do Sul disaster. the CVC organized itself as the largest private point in Brazil for the collection of donations to the state of Rio Grande do Sul. And with this, the largest campaign of the tourism segment, by far one of the largest campaigns of Brazilian retail, and we collected more than 236 tons for the families of Rio Grande do Sul. Well, within this section of the opening of stores, we had a growth of 41 stores in the second quarter of Brazil and 69 stores in the first quarter of 2024, breaking the opening record. and within the normal level, aligned with the normalized history of the closing company, which is around 6 stores per quarter. And then we already see that the opening of stores of these new safras already comes exactly within the profile married to our strategy. So, within the opening of the 2024 stores, there are practically 70% in cities of the interior, which is where the population grows more, where the GDP grows more, where there is much more adherence to the CVC brand, also assistance, also... in interest and demand for alternative ways of financing, combination of physical sales with the advent of digital, which is what we call FIGITAL, so these stores have already been very successful, especially our store that is 150%, 200% of the sales curve above what we were expecting. And a very good news is that more than 50% of these new stores are made by CVC franchises, demonstrating the strength and credibility of our brand, of our management with the current franchises. And then, within this quarter, that will have much more fruit in terms of this opening of the store, several contracts that we are doing with market chains, retail chains, drugstores and, among others, retailers, to make stores inside Store in Store and also stores in parking lots, stores together of the flea markets and hypermarkets too. So, several big networks in Brazil have been looking for us and we have signed several partnerships that are already giving results and that will be much stronger for the next few months. Well, within the general highlights of the second quarter of 2024, it was this, an important quarter in terms of growth of top line, growth of profitability, generation of positive operating cash, opening of stores, continuous cost reduction of the company, so a lot of news in this second quarter of 2024, based on all the back-to-the-basics that we did in the implementation of these strategies in the last 12 months, they begin to give a more pronounced result from this quarter as well. Now I pass the word to Felipe Gomes, who will talk, will deepen here within the operational and financial results of each business unit of CVC Corp in the second quarter of 2024.

A hug. Thank you for the word, Godinho, and good morning everyone. So, following here on slide 7, we highlight here the confirmed reserves, the liquid revenue and the company's take rate. So, looking at the top left, when we talk about confirmed reserves, in the second quarter of 2024 and the second quarter of 2023, an increase of 16%, going from R$ 1.273 billion to R$ 1.477 billion. Without the impact on Rio Grande do Sul, this growth would have been even greater, of 21%. When we go here to the top right, we see a very expressive growth there, of liquid revenue, ranging from R$ 126 million to R$ 149.5 million, an increase of 18.6% in the quarter, and when we compare the quarter to the quarter, also a very expressive increase of 16.6%. In the items below, we have the highlights here of 2024, these highlights have already been well explored by Godinho previously. Moving on now to slide 8, which is the B2B slide, we also bring here the comparisons, quarter against quarter, semester against semester, both of confirmed reserves and liquid revenue and take rate. In the second quarter 23, these confirmed reserves of B2B were 1 billion 466 thousand, and in the second quarter of 2024, 1 billion 395 million reais. Remembering here what Godinho has already said before, we have the question here of the millers, right, that the company decided to stop making this sale, this sale had been made until May of last year, so it's a little dirty comparison here, right, in quotes, and also the whole issue of focus on profitability, where we redid several contracts there with the B2B agencies, which also brings a little dirty comparison between the quarter and the quarter, but that now, from June 24th to the third quarter and on, this comparison begins to be more correct between one number and another. So, in the confirmed reserve in the quarter, a drop of 4.8%, also with the effect of Rio Grande do Sul, if we exclude this effect, it would be in the house of 3.2%, In the semester against semester, a slightly higher drop, 12.3%. And then it has to do with what we said, that this comparison starts to get cleaner in the second quarter than it did in the first quarter. So that's why in the semester the impact is still a little higher. When we go to the liquid and take rate revenue, which has everything to do with what was said in the focus on profitability in this B2B segment, We see this expressive increase in liquid revenue coming out of R$ 74.5 million in the second quarter of 2023 to R$ 93.1 million in the second quarter of 2024. And CEMES against CEMES, also a very expressive growth of 22.4%, coming out of approximately R$ 145 million to R$ 177 million. and a very expressive take rate increase, coming out of 4.9% in the first semester of 2023. Again, where we had the issue of millers, there were some contracts that were not advantageous for the company, coming out to 6.5% take rate, which gives a very big impact. And on the bottom line, the highlights of B2B, which again have been well explored by Godinho previously. We now move on to slide 9, which is the slide from Argentina. As said before, we have been noticing an improvement in the business environment in the country, but there is still a question of reducing the purchasing power of the population, which also directly impacts sales, although in recent weeks we have been noticing an improvement at this point. When we go to confirmed reserves, We have a drop here from the second quarter of 2023 to the second quarter of 2024 of almost 38%. When we look at the semester, this drop is bigger, which in a way already starts to show an improvement of a quarter compared to the previous quarter, from the point of view of confirmed reserves. When we look at the liquid revenue and take rate, in the liquid revenue this drop is even smaller, because there is also the question of... of sales with tribute, and this tribute reduced. As Godinho said, this was just a pass-through of revenue. So, that's why the drop in liquid revenue ends up being lower than in confirmed reserves. And maybe the good news here is that the take rate is still rising, going from 6.4% to 7.6% in the quarter-to-quarter comparison. When we look at the entire semester, We have a drop in revenue of approximately 22%, going from R$143 million to R$111 million, but with an increase in the take rate from 6.5% to 8.1%. I think the big highlight here for us in Argentina is that despite this drop, of sales and with an effect on EBITDA, the liquid profit has been showing strong in this quarter and in the year itself, which in a way also shows the business resilience there in Argentina. Moving on to slide 10, which is the consolidation of the CVC Corp's results, with a lot of emphasis here on the increase, mainly in EBIT, from quarter to quarter. Following the picture here, on the top left, we have the liquid revenue and the take rate. So, in the second quarter of 2023, the liquid revenue was R$ 269 million, moving now, in the second quarter of 2024, to R$ 294 million. an increase of 9.2% and, in the semester, reaching R$ 611 million, with an increase of 8.2% compared to last year. And the take rate going from 7.4% in the first semester of 2023 to 9.3% in the first semester of 2024, which reflects the company's strategy to focus on business profitability. On the top right, we also have fixed expenses and an indicator in relation to the liquid revenue of Brazil. Here we talk about the business in Brazil, so the expense falls. de 156,6 milhões de reais no segundo trimestre de 2023 para 142,4 milhões de reais no segundo trimestre de 2024, o que faz com que o indicador de despesa fixa por receita líquida caia de 78,1% para 58,7%. Quando a gente analisa semestre contra semestre, também uma queda de 329,3 milhões de reais para 283,4 milhões de reais de despesa fixa, with a drop in the 78.1% indicator to 56.7%. Below here, we have the analysis of the adjusted EBITDA in the quarter, in this highlighted picture. So, the company as a whole, CVC Corp, comes out with less than R$16.2 million of EBITDA adjusted in the second quarter of 2023 plus R$ 70.3 million of adjusted EBITDA in the second quarter of 2024, an increase of R$ 86.6 million of EBITDA, going from a margin of minus 6% to a margin of practically 24%. When we open between Brazil and Argentina, No Brasil, a gente sai de uma EBITDA de menos 31,3 milhões de reais no segundo trimestre de 2023 para uma EBITDA de 60,8 milhões de reais no segundo trimestre de 2024, um incremento de 92,1%. In Argentina, we have a drop of R$ 14.9 million in EBITDA from the second quarter of 2023 to R$ 9.5 million in the second quarter of 2024, a reflection of the drop in sales that we saw in the previous slide. O EBITDA ajustado acumulado do semestre, a gente tem um incremento em relação ao ano passado de 145,5 milhões de reais, onde a gente sai de 11 milhões de reais no primeiro semestre 23 para 156,5 milhões de reais no primeiro semestre 24, elevando a margem de 2% para 25,6%. We now move on to slide 11, which is the last slide of the presentation, where we bring here the cash flow and the company's overall revenue. On the left side of the cash flow, the great highlight for us here is the operational cash generation, that is, in the second quarter of 2024 we had an operational cash generation of R$ 34.7 million, which is the best cash generation in the company in the last 18 quarters, since the third quarter of 2019. and we ended the second quarter of 2024 with R$ 244.2 million, a drop against the second quarter of 2023, more explained by the entire debt service that the company did during this period, and with a policy of less anticipation of receivables, which is clear in the next frame, which is the frame of general indebtedness. So in this picture, if we go here line by line, in the first line of gross debt, a drop of practically R$93 million, quarter by quarter, going from R$891.9 million to R$799.2 million. millions of reais o caixa que a gente acabou de comentar né saindo de 646 para 244 milhões de reais e quando a gente olha essa métrica aqui de dívida líquida um incremento de 309 milhões de reais porém explicado pela toda a questão das antecipações recebíveis que são as duas linhas seguintes né então When we look at the unanticipated receivables, that is, the balance of receivables that the company has to use to anticipate an increase of R$ 380.9 million, leaving R$ 116.4 million of unanticipated receivables balance in the second quarter of 2023 to R$ 497.3 million in the second quarter of 2024. When we look at the balance of unanticipated receivables, that is, the value of unanticipated credit card receivables, we also notice an expressive drop of R$ 1 billion. reais no segundo trimestre 23 para 778 milhões de reais no segundo trimestre 24 ou seja um saldo de recebíveis antecipados de cartão de crédito inferior em 273.2 milhões de reais which reflects in this last line, which is the sum of the company's liquid debt plus these receivables, where there is a very expressive drop of R$ 1.181 billion in the second quarter of 2023 to R$ 836 million in the second quarter of 2024, that is, a reduction here of this general debt of R$ 344.8 million. Well, so we ended the presentation and now we are at your disposal here for the questions. We are at your disposal, both me and Godinho.

Thank you. Now we will start the Q&A session. Remembering that to ask questions, you must click on the Q&A icon at the bottom of the screen and write your question to enter the queue. When announced, a request to activate your microphone will appear on the screen and then you must activate your microphone to ask questions. Let's go to our first question, which is from Bob Ford from Bank of America. We will open your audio so that you can ask your question. Please proceed.

Good morning, Fabio, Felipe, how are you? What are you thinking about Available Seat Miles and the demand for domestic travel and its implications for bookings and take rates in the second quarter of 2024? In addition to this, the debt continues to be relatively high. How should we think about the development in the medium and long term? Thank you.

Hi Bob, this is Godinho. Good morning and thank you for your question, thank you for your attention here in our call for results. I will answer this first half, which says about capacity dynamics for the second semester and Felipe comes in to talk a little bit about the individuation. Excellent question, thank you. And what we saw in this first semester of the year was an almost flat domestic ASK, it came with a net 1% growth of ASK, not ASM, not miles as in the United States, but kilometers here in Brazil. and with 15% growth from the international market. So it was an important capacity of growth in the international market and kind of flat in Brazil, where I think the industry expected the market to fall a little bit, because It was expected that Gol would lose more aircrafts than it actually did. Gol had an excellent renegotiation with the dealers and it went very well. In terms of capacity, it was not so affected. So, the re-dimensioning of the Maré that it did last year, it didn't get any worse this year and it should come back in the second semester. Now it received new deliveries from Boeing that were delayed. And then, in this expectation of Gol having lost more aircraft than what was not confirmed, the other two companies accelerated the inclusion of capacity. So what was supposed to have been negative in terms of capacity in the first semester ended up growing by 1%. And then, as the economy in Brazil did not come, and the issue of interest and inflation, as everyone has been following, did not come as strong as the industry imagined, what happened was that the yield, which is how much is paid for every 100 km flown in Brazil, fell 5%, and in the international it fell 15%. So this is a dynamic for leisure trips that is somehow positive, that you are having growing capacity in the market, even if it is marginal in the national and important in the international with 15%, but this drop in the average rate ends up somehow stimulating our customers to make the purchase decision and we believe that this dynamic continues for the second semester. We see the international growing in this range of 15% and the national positive, but low single-digit, let's say so. maybe a mid, single digit within the second national semester with a flat rate or a slightly negative rate, which is very positive for our sales dynamics. We had this first year of management an approach of the air companies, of the main partners of CVC, of the three here of the national and the main of the international, we had a great re-approach, today we have completely different conditions from what we had last year, so the price competitiveness of CVC today, both domestically and in the main destinations of the international, it is completely different from what it had last year, and then the result that happened now in the second quarter, is the growth of bookings in B2C, which was 16%, with an important increase of 1.6 points in the take rate. So, growing and gaining share with an increase in margin. And we believe that this dynamic can continue and is happening throughout the second semester, because this market dynamic must continue.

Hi Bob, Filipe speaking, how are you? Thank you for the question, I'll talk a little bit here about entitlement. This is actually a very relevant item here in our day-to-day of the company, of the executives, and our idea is, over time, what is the company's cash generation, which we are starting to notice now, and strengthening in the next few semesters, and increasingly reducing the leverage the company's leverage. In addition, there is the question of reducing this debt, which is one of the focuses, but there is also a question of changing the profile as much as possible, and as soon as possible, we have been talking a lot with our creditors and start making a migration from the current debt profile that we have, which today is the main one, migrating to receivable anticipation, which then enters more into the company's day-to-day dynamics and also with better rates for CVC. So I think that's a bit of our idea here over the next few months, reducing this leverage and also improving the format of this debt.

Thank you, Felipe. Can you comment a little about the bookings and boardings for July as well, please?

July was a positive month, a very important month. So it was a third quarter month. The third is an extremely relevant EBITDA. So it came in line with the growth that we that we expected, both nationally and internationally, even with the issue of Rio Grande do Sul. For you to have an idea, Bob, our stores in Rio Grande do Sul, the recovery is being so strong that even during July, even without the date, for the opening of Sagado Filho, today we already know that half of the flights return to operate in October and the other half is already reestablished in mid-December, but even before we knew that, we had the sale of the stores in Rio Grande do Sul 90% of the July sale of last year. 90% without having the airport, without having the date of the airport, just selling the flight from January onwards. So we had a positive dynamic in July, as far as we imagined our budget. Congratulations, Colínio. Thank you very much.

Thank you, Bob. A big hug.

Thank you, Bob, for your question. Our next question comes from Victor Rogates from Itaú. We will open your audio so you can ask your question. Please, go ahead. Thank you, Felipe.

Thank you for taking my question. I have two, actually. The first, I think you already answered a little partially, which is the bookings dynamic for the second semester. But you commented a little here about Brazil, if you could share a little the expectations that you have here also for Argentina, I imagine that it starts to improve here in the sequential speaking. And then my second question about the financial result, I think it was a positive surprise when I looked at the result. And I wanted, if possible, for you to comment on the sustainability of this line for the next three months. Thank you, guys.

Hi Victor, how are you? Thank you for the question. I'm continuing, let's go. You take Brazil and Argentina, the dynamic of bookings. What we see in this first semester is nothing more than what we said would happen. What did we say? In the first quarter, we will privilege profitability. So B2C had growth 0 to 0, because we had tough comps from the first TRI of 23 versus 22, had grown 50% year over year, but with an extremely negative margin. What happened? We grew 0 to 0 in B2C, but with a much better margin. that we said it is possible to maintain this sales level with a much higher take rate, generating cash, generating a much more representative EBITDA result, which is what happened. In the second quarter, we had a growth of 16% in P2C, maintaining this strong growth of take rate, that is, we grew sales, we gained share and increased the take rate. It was three at once in the second quarter. in the second quarter, and that's what we imagine this maintenance of this take rate line, around 9% more or less, with also growth in the B2C dynamics. Remembering that in B2C we finished last year with about 1,100 stores in Brazil, at the end of the first quarter we finished with 1,185 stores, If we repeat more or less this performance only in the third quarter, which we opened as a store in the first quarter, only that is already 15% more of stores, right? So if we had zero Semi Store Sales, it would already be... would grow 15% only in Brazil, right, without growing sales, even the stores, being that we just delivered a same store sales of 10% even considering 0 to 0 in sales of the stores in Rio Grande do Sul. So I think we have a good perspective there for for B2C in Brazil. Within B2B, it's also nothing more than what we had talked about. We discontinued the mill, discontinued a series of deficit clients, from the point of view of profitability, from the point of view of credit. Then what happened? In the first semester, in the first TRI of last year, it was 15% drop in bookings, but a very big increase. of the profitability and the liquid revenue. Then, what happened in the second quarter? It decreased the drop gap. We went from minus 15 to minus 5, with a 25% increase in the liquid revenue, which I talked about in this first part of the call, the RA. in the first semester of 2023 versus the first semester of 2024, it fell 10% bookings and increased 40% the liquid revenue. This is a company that will make 5 billion reais per year. 10% drop in gross bookings, 40% increase in liquid revenue. It came out of an adjusted EBIT from the first semester of last year of less 2 million to more 60 million. of positive results in the first semester of this year. And what we imagine now for the second semester, where we don't have these miles comparisons, is that little by little we already see growth within the B2B line as well. So growth in B2C, growth also in B2B. Argentina, We are much more focused on maintaining positive cash generation and maintaining positive liquid profit in this extremely recessive moment. In the second quarter, we had a liquid profit in Argentina of R$ 25 million. in the worst quarter of the year. Positive EBITDA, positive cash generation and 25 million reais of liquid profit in the company. Even with 37% drop in bookings, but then part of it is just the flow-through in the result that reduced the package sales tax. In fact, the liquid revenue was 25% less. What we see and what we expect is a gradual recovery. They think the recovery will be like Nike's sushi, that it falls and then it gradually recovers in a growing trend. That's what we've seen. But in this market fall, we've gained a lot of market share in Argentina. of the modality of selling in dollars in stores, we were very agile in various tactical issues in this moment of difficulty in the market in these first two quarters and we won a relevant share. We keeping this, along the second semester, which is when little by little we are recovering the market, we believe that we will only return to the level of 2023 in at least 2025. So, very likely, there will still be a negative in the second semester of this year, but... softer than these falls that we had now in the second quarter, which should probably have been the worst quarter of the year, but still generating positive cash, positive EBITDA, 25 million reais of liquid profit. So this is what we are seeing as a trend for the second semester of this year.

Hi Victor, Felipe speaking, how are you? Just about your question about financial results, how do we see the sustainability of this over time? Without a doubt, we see it as sustainable in the way it is, so it is a trend line, this improvement, because if we take all the spending part there, the idea is that everything continues, that each time we have a little less financial income, the interest on the receivables is also falling, we have been doing good negotiations with the acquirers, that's why more and more we come back to this, give a little of the company's debt mix, which brings a gain. Maybe the part that has a little more uncertainty within these lines is the other financial receipts, because a piece of this comes from a question of conversion of the dollars there in Argentina. The expectation from what we talk about and is very close to the day-to-day, which will continue, there is not much reason for this number to have any change, at least in the next few months. And the part that has a question here of market marking, of hedge contracts, also varies a little according to the change, but as a trend line and as a continuous improvement, it is sustainable, this is our way of seeing it.

That's great, guys.

Thank you. Thank you, Victor, for your question. Our next question comes from Rodrigo, from Rix Capital. we will open your audio so that you can ask your question. Please proceed.

Hi guys, thank you for the question. There are two questions. If you could comment on the expectations of the revenue drivers for the third quarter, given the sales trajectory in the second quarter and also a little about July and how do you expect the take rate to oscillate? So just to have an idea of how the main drivers should evolve. And if you could also comment a little If the expectation of revenue growth in the third quarter allows you to maintain a trajectory of drop in expenses and if you can comment a little about the operational leverage on the EBITDA margin per quarter.

Hi Rodrigo Godinho, how are you? Thank you for your question. Well, the drivers of the third quarter's revenue is what we've talked about. Within B2C, we continue on a very positive trajectory of store opening, where we opened 85 stores in liquid in the first quarter. I believe we repeat this first quarter only in the third quarter. So, there is a very positive dynamic of opening points of sale, not only in Brazil, but also in Argentina. In Argentina we opened, even with all this recessive situation of monetary pressure of consumption within the country, we opened 11 points of sale in the first semester. and we must open at least that over the third quarter. So this is an important driver, store growth, and we must somehow continue the increase in same-store sales, only now we had, even considering the fall in Rio Grande do Sul, 10% of same-store sales within B2C. So this 16% growth that we had in the confirmed reserves, this will naturally become a reserve consumed throughout the third, fourth quarter. So, in the third quarter, we are already with practically 70% of it sold, So we can have a good visibility that will be a quarter according to our expectations. The fourth quarter is still missing a lot to sell and the airlines you see that they are stimulating a lot, there was a mega promo from Latam on Monday, this week, which is absolutely out of the norm, which shows that the demand curve projected by the airlines, the real versus forecast curve within revenue management, is moving down. And then they make this promotion so that there is an adherence to this curve and it ends up stimulating the market and CVC is very benefited by these movements. So, you have this driver of stimulation, as it has an additional capacity, always coming from the domestic market, which was not expected, due to the restructuring of Gol having been more positive, on the part of the fleet than everyone imagined, then you end up with a more weakened economy, on the part of the power of consumption, interest, inflation and everything else, you tend to the players of the airline and also from the hotel industry to stimulate through price, which is always positive for the leisure market and also positive for CVC. B2B, we end up growing, as we said, in a way that does not compare the base with miles, and then we already have a year of work and we are clearly gaining share. When we cut, we follow our market share position in the IATA rankings, both in Brazil and in Argentina. In Argentina, when we started this work a year ago, we were the second and today we are the first in the international market emission ranking in Argentina, which represents 85% of Argentina's travel market. is very important outside the country, it is emissive, different from Brazil where the majority travels inside the country, in Argentina the majority travels outside and we are the leaders, we took the leadership And in Brazil, for example, in B2B, as we cut the deficit customers, we fell to the third in the consolidation market. And today, little by little, with the correct take rate and with a reduced spending base, we are slowly recovering the place. and today we are there every month, especially within the main companies, we became the first emissory company within the consolidation market. So we have this positive drive that should last. And in Argentina we also have a surprisingly positive opening of stores in the first quarter, which we must repeat the first quarter in the third quarter, the same thing that we have done in Brazil. Now, the market has recovered in Argentina, but it will only return to the level of last year next year, so it must reduce the gap negative, but it should not have growth throughout the second semester. That's what we said, and July came according to our expectations. With regard to expenses, I think Felipe can comment, but there must be a drop in the percentage of liquid revenue, I don't know if so nominal.

Hi Rodrigo, how are you? Felipe speaking. That's exactly what Godinho said, we've been commenting, the company has gone through two big movements in the last year, at the beginning of this year, of spending cuts. So now what we see a lot inside here is doing everything to keep this number in absolute values, stable, that is, when we do this, clearly we are dropping expenses, because there is a decision, the supplier contracts have some corrected, and what this brings in the end is the percentage increase and each time this expense index on revenue is falling, so this should continue and will continue, When you ask a little about operational leverage, what we have, again, I think these big movements we've already done, now it's a much more fine-tuned job here, renegotiating the supplier, doing technology projects that help us later in efficiency within the company, but there are still a lot of things. I think the good news here is that we still have a lot of things to do. So, again, a maintenance of this expense in absolute values, with revenue growth coming, as Godinho already said, for the third quarter. So, this indicator of revenue spending is certainly falling, continuing to fall for the next few months.

Thank you, guys. Thank you, Rodrigo, for your question.

Our next question comes from Rubem Couto. We will open your audio so you can ask your question. Mr. Rubem is no longer connected to the call. We will move on to the next question, which is from Mr. Nicholas Lahan, from JP Morgan.

Mr. Nicholas, we will open your audio so that you can ask your question. Please proceed.

Good morning, guys. Thank you for the call and thank you for answering my question. Most of them have already been answered, but I have a more general question. I wanted to understand how you are looking at the consumer's financial health, right? Because when we look at the most discretionary companies listed in Brazil, no one is... percebendo uma melhora muito marcada em consumo. Então eu queria entender como vocês estão enxergando a saúde financeira dos seus clientes e como vocês enxergam que isso poderia mudar agora na segunda metade do ano. Obrigado.

Hi Nicolas, good morning, thank you for the question. Felipe, if you want, you can also complement me, but we have, within this expansion that we made of our credit table, we are seeing a very controlled inadimplency. Of course, we will not accelerate much more than the working capital that we have employed here, Now we have another movement that is to increasingly substitute our credit table for financing with other banks, Santander, Bradesco, among others, other alternative ways of financing, to continue the financing that we have with the FGTS anniversary loan, credit with signature, public officials, PicPay, credits in the free market, financed through the free market, PIX parceled in the free market, so you have a series of this, it is a great priority of ours, to take the client from the limit of the credit card, to have an alternative way to the credit card so that he can finance his trip in a quiet way, without interfering in this use of the credit card rotation that everyone is behind this limit, right? We want to surf in this blue ocean of having an alternative way of financing and month by month, quarter by quarter, we are decreasing the share we have of credit card within our sales. However, Within this question that you asked about the financial health of our consumers, we have increased the credit table in the last few quarters, but we see an unemployment that is very under control, around 2%, more or less, and less and falling now. So, of course, we dose well this issue of how much credit is given after the landing, because this is really the risk you run, is the post-landing credit. If the guy gives a default before the landing, you simply cancel the trip. The trip is being restrictive, but for now, yes, without any surprise, without any negative surprise. As the airlines and hotels have an additional capacity coming to the system and the economy does not respond at the same growth rate that the players who have the assets expected to come, the demand part is what happened in the first semester, low price. So they lowered the domestic yield, lowered the international yield, because they have more capacity available than they demand, and this is an environment where CVC usually has a favorable demand, because it stimulates leisure, And within Lazer, 52% of Brazilians think about CVC. And then we really capture this demand very strongly within the stores that we already have and also in the new stores that we have been opening in the interior of Brazil with great success.

I think it's good that you said that, Nicolas. Good morning, Felipe, speaking. I think maybe just a point here to add a little, thinking and responding also in a generic way, what we feel, we follow a lot here the consumer confidence index, we saw that in July there was a drop, but in CVC, specifically here in our world, which is tourism, which is travel, we still feel a resilient demand, we have this a very strong trend, which reflects in the confirmed reserves. The month of July is also, so far, among the numbers that we have of the month that closed, also strong. So, I think we also believe a lot in a slightly structural change of desire, of consumption by experience versus consumption of material goods, and in this tourism is very So I think that on our side here, for now, despite some drops in consumer confidence, on our side we still don't realize it. And more specifically in the financial health issue, Godinho was already well, we continue with our indexes of inadimplency here controlled and recently even with some drops. So I think that from the point of view of CVC, that's it.

Well, that's super clear. Thank you for your time and for the answer.

Thank you, Nicolas, for your question. We would like to inform you that the question and answer session is closed. And now we would like to pass the word to the company's final considerations. Mr. Fábio Godinho, please proceed with the final considerations.

Cool, thank you for everyone's presence, we had a very positive result for the first time, despite the fact that in the last few quarters we have been improving a lot, reducing the cash generation a lot in the negative, compared to previous periods. But finally, in this second quarter, we come with a generation of cash, already discounting the working capital, the variation, already discounting Capex, EBITDA, so it already delivers a positive generation of cash of 35 million reais, an important growth of B2C. with the growth of same-store sales, with the growth of take rate, a growth of liquid revenue and substantial positive profitability in B2B, still with less than 5%, but which will probably transform into growth, as we were already talking about this in the previous trimesters, now in the next positive trimesters, of the B2B dynamics, and Argentina is very focused on profitability, positive cash flow generation numbers, relevant share gain in this first quarter, and then, as the market recovers during the second quarter, then we close this growth gap again, but always looking at the cash generation and profitability as a priority there in the Argentine market and then we also see the growth, the commitment with our franchise base in Brazil, following our aggressive expansion plan that we had for this year, confirming ourselves both in Brazil and in Argentina. Okay guys, so thank you very much and see you next quarter. A hug.

The conference of results for the second quarter of 2024 of CVC Corp. is closed. The Department of Relations with Investors is available to answer other questions. Thank you very much to the participants and have a great day.