CVC Limited

Português ou inglês. For those listening to the video conference in English, there is the option to change the original audio to Portuguese by clicking on Mute Original Audio. We inform you that this video conference is being recorded and will be available on the company's R&D website, www.cvccorp.com.br.ri, where the full material of our results is available. It is possible to download the presentation also in the chat icon, including in English. During the presentation of the company, all participants will have their microphones disabled. Next, we will start the Q&A 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, so you must activate your microphone to ask questions. We advise that the questions be asked all at once. We highlight that the information contained in this presentation and any statements that may be made during the videoconference regarding the business perspectives, projections and operational and financial goals of the company constitute beliefs and premises of the company's administration, as well as information currently available. Considerations futuras não são garantia de desempenho. Elas envolvem riscos, incertezas e premissas, pois se referem a eventos futuros e, portanto, dependem de circunstâncias que podem ou não ocorrer. Investors must understand that general economic conditions, market conditions and other operational factors can affect the company's future performance and lead to results that materially differ from those expressed in such future considerations. Today, we have the presence of the company's executives. Fábio Godinho, Director-President of CVC Corp and Felipe Gomes, Financial Director and of Relations with Investors at CVC Corp. I will now pass the floor to Mr. Fábio.

Please, Fábio, you can speak. Good morning everyone, welcome to another CVC Corp results conference. Here who speaks is Fábio Godinho, CEO of the company. Well, passing here financial and operational highlights of the third quarter of 2024 is the fifth quarter of our new management. The first quarter that we announced the results was the third quarter of 2023, We are now announcing the fifth quarter, which is the third quarter of 2024. Many news about the company's evolution in these last five quarters. A very important quarter, especially in some relevant items, both EBITDA and company cash generation this third quarter of 2024. Starting with the growth part, a super important item for us, store growth and growth of confirmed reserves in our stores, both new and current. We had 90 open stores, including Brazil and Argentina, in the third quarter of 2024. and 191 stores opened in the first nine months of this year. We had already broken the record of historical opening of the company in the previous quarter and again, right in the next quarter, we surpassed again the historical record of opening stores, both in Brazil and in Argentina, showing the confidence of our franchisee base in the CVC business and also in the world business in Argentina. even in a challenging macroeconomic environment in Argentina. We still show a very high confidence in our franchise base, both in Brazil and in Argentina. Reserves confirmed in Brazil, B2C, growing 10%, in a quarter where the industry grew around 5%, the local aviation industry, so we are already growing far above the industry. in B2C and in B2B, as we have been talking about in the last few semesters, finally returning to present growth. Remembering that our strategy was, from the first moment, to privilege the profitability of the business. We are delivering a third quarter with an EBITDA margin of 11 times higher in nominal numbers than it was in the year over year, which was in the third quarter of 2024. And now, growing, top line, year over year, now that there is no longer the comparison with miles, we already naturally, as long as there is no longer this comparison, we return to grow, but with the correct take rate, with the correct profitability. Talking about profitability... The key point of our management, the main point of our management, as highlights within this quarter, we had, for the first time, passing R$ 100 million in EBITDA in a quarter, now R$ 125 million in EBITDA, this is a growth of almost 30% year-over-year, and a growth of R$ 280 million, comparing year-over-year, the 9%. first months of the year versus nine first months of last year 161 percent increase Brazil quarter to quarter right here over here is increasing sixty percent profitability EBITDA with B2B growing eleven times now showing growth in the top line and growing 11 times the profitability of B2B, this very much driven by Recture Advance, which is our air consolidator. So excellent results in our B2B, in Trend and especially in Recture Advance in this last quarter. putting excellent profitability results and now combining growth along with profitability in the third quarter and this is how it should behave in the future. We also have 34% margin of EBITDA in the combined of CVC Corp companies, you have 9 percentage points of growth versus the previous year and almost 40% of EBITDA margin in Brazil and then we are already going back those numbers that the CVC historically presented in the times before the pandemic. There were other numbers now in this third quarter that we are going to address here in a little while, that will also be coming close to the levels of 2019, which is our interest, to go back to the numbers that we did before the pandemic, and this is already coming, especially in this regard of the margin, we are already delivering now, this EBITDA margin, which still has more space for this to develop forward. Another very important point important, countable liquid profit in combined operations of CVC Corp for the first time after 20 trimesters presenting countable loss, everyone knows here, turning the campaign, the level of depreciation that CVC has due to very large contributions, right, that are the current run rate, but very far from the reality of CAPEX in previous years. This item does not fit in the company, so it weighs a lot on our depreciation account in the quarter, but even so, for the first time in 20 quarters, after 20 quarters, CVC returns to present countable liquid profit both in Brazil as in Argentina. And this represents R$ 340 million of improvement in the last line in the last nine months of the year. R$ 340 million of improvement in the last line, which is quite significant for nine months. This all reverberates in a much better capital structure than we had five semesters ago. A grande highlight aqui é 118 milhões de reais de geração de caixa operacional no terceiro trimestre de 2024. Como a gente sempre falava, o P&L, a gente no primeiro trimestre já fez a virada para positivo da companhia, que foi aquele 93 milhões de EBITDA que nós fizemos no terceiro trimestre de 2023. A geração de caixa operacional, por ser em função de... de variação de saldo de balanço demoraria um pouquinho mais que tinha que aumentar o EBITDA, melhorar a venda, diminuir o working capital, melhorar a questão dos produtos exclusivos e tudo isso já vem dando resultado. Lembrando que no segundo trimestre de 2024 a gente já tinha gerado mais de 30 milhões de geração de caixa operacional e agora com essas melhorias Increasing, we already see with 118 million cash generation in the third quarter of 2024, an improvement of more than almost 210 million reais. Ieroverir versus the third quarter of last year, a very important improvement in the most important item that we look at the most. dentro aqui da companhia, que é a geração de caixa operacional. Então, agora, todas essas medidas que a gente vem fazendo, tanto do P&L quanto de balanço, já começam a dar esse resultado nesse QPI, que é o mais relevante para nós aqui, que é a geração de caixa da companhia. Remembering here, with these 118 million of cash generation in the third quarter of 2024, we ended up reaching the same level of cash generation that the company was generating in the third quarter of 2019. at a time when the company was worth six times more in the market cap than it is worth today. We had with that and more the debt renegotiation, 239 million of reduction in the company's overall debt, with that we had a rating, we got a rating that at that moment it was seven notes better than what we had in the S&P, so we got a triple B rating, in FIT, which really makes sense of the balance and the P&L of this company that we have today and not of the company five semesters ago. So now it really comes back to reality, the company's rating level and, along with that, the debt profiling that you followed. né nesse último trimestre aumentando o prazo reduzindo o custo gerando uma alavancagem de 1.2 vezes a dívida líquida esse é um número que acho que muito pouca gente prestou atenção dentro dessas últimas movimentações que à medida que a gente vai gerando mais caixa à medida que a gente renegociou a dívida à medida que a gente aumentou o EBITDA alavancagem da companhia caiu brutalmente hoje of the liquid debt, if you consider the EBITDA of the last 12 months, which is a very low leverage compared to what we had when we took over the company five trimesters ago. Talking now about opening stores, this item so important to us, both physical stores here combined with our digital sales, where we make the conversion of this in physical stores. Remembering that the conversion that we have in digital is around 1%, the conversion of sales in physical stores is 25%. In other words, that's why we prefer to sell much more within this FIGITAL model, and not 100% online. Because 100% online, when we sell 100% in digital, it's 1% conversion. When we start in digital and finish in the physical store, but without the need for our client to go to the store, we do this... através do nosso CVC Zap a conversão é 25 vezes maior e isso é que faz com que a gente aumente tão rapidamente essa nossa base de lojas nós aumentamos só no Brasil 72 lojas novas No terceiro trimestre, mais uma vez batendo o record de histórico abatido já no trimestre anterior, mais uma vez superamos o record histórico de abertura em um trimestre, lembrando que desde que nós voltamos na companhia nós abrimos mais de 230 lojas novas. in these five quarters since we returned to the company in June 2023. In mid-2023, 42% of our PDVs were in the capitals and 58% in the interior, and within this new profile of the stores, we increasingly increase our presence in the interior of Brazil, with 68% of stores in the interior and 32% of these new stores in the capitals. And why do we increase this in the countryside? The key sales conversion elements in the capitals are obviously the CVC brand, which is the most remembered brand in Brazil. Now, for the 14th consecutive time, we won the Top of Mind award da Folha de São Paulo, que é o mais relevante do mercado de marketing do Brasil, mais uma vez a CVC ganhou no mercado de turismo e férias, então a marca CVC é um atributo chave para conversão, mais preço. Então o mercado de capitais, principalmente as principais São Paulo, Rio de Janeiro, Brasília, é um mercado que os elementos chave de conversão é marca CVC e preço. Ao passo que no interior, a marca CVC tem uma relevância, continua uma relevância muito importante, but the regional relationship of our franchises makes a huge difference as an element for conversion. Besides, it's where the GDP grows more, where the population grows faster, it's where Brazil is growing and where it's going to grow a lot. much stronger, the CVC, making the strength of the brand and making the regionality, the regional knowledge that we have through our master franchises and through our franchises in all states of Brazil, throughout the interior of Brazil, this irreplacable penetration, an irreplacable competitive advantage that the CVC has within the tourism market. And we have been expanding We have been beating these opening records because one of the main vectors are new stores, cheaper store models and with a return, with a TIR and a payback much faster for our franchise. So we have modular stores, kiosk stores and the light model store that we also launched last year, which has 70% less capex, 70% less... OPEX operational costs and much more demilitarized and fast this installation is also an example of our kiosk. So it greatly reduces OPEX, greatly reduces CAPEX, increases TIR and greatly reduces the payback of these new models for our franchises and that's why we and obviously combined the model of of digital sales, right? CVC is the only one in Brazil that can generate the lead on the internet and convert it into a physical store throughout Brazil with this level of regional penetration. So this is a very important advantage also for our franchise and this is also one of the reasons that we have received several conversion interests from traditional travel agencies so that they can become the flag for CVC because it is the only way das agências de viagem tradicionais entrarem nesse mundo digital, porque hoje sozinhas elas não vão ter escala para investimento em marketing, para gerar campanhas digitais, para fazer gestão de CRM, para fazer inteligência artificial, para ter o CVC Zap, todo esse sistema, todo esse arcabouço de tecnologia e inteligência artificial que a gente entrega para nossas franquias, para maximizarem a venda, tanto no modelo digital, quanto no modelo físico, quanto nessa combinação também que é the Fijitão model. And that's why we've been signing several new partnerships with Rede de Posto Ipiranga, Açaí, where we already have six open stores of this new modular model, Atacadão, which already has two more stores that we have already opened and we are opening a number of others, Carrefour. Rede Angelone Regional, and a series of others that are in the process of signing. And within this work that we do to identify new points of sale, we already have 800 points of sale, both in hypermarkets, within attackers, or in the parking lot of attackers, and parking lot next to drugstores, and other points on the street or in shopping centers, just looking for franchises. We already have 800 points mapped Com viabilidade pronta, P&L, viabilidade econômica pronta, só em busca de novos franqueados para fazerem essas aberturas dentro desse nosso ambicioso plano de crescimento de IPDVs nos próximos anos. Combinando crescimento de lojas no interior, através da venda de modelo FIGITAL, com CAPEX e OPEX muito menor para o nosso franqueado. And now, to make it a little more tangible, how are all these stores that we are opening going, right? Because it's a little scary to see the number of PDVs, right? How much? We are more than this year, we are going to more than double the opening record of new stores at CVC Histórico, which was in 2018. CVC opened 128 stores, we will probably double O record histórico da CVC. Agora, como estão indo essas lojas? Como está a performance dessas lojas? Então, vamos tangibilizar um pouquinho. Então, tem alguns exemplos aqui de reabertura de lojas que fecharam na pandemia, novas lojas em capital, novas lojas no interior, em cidades médias e em cidades pequenas. Então, nós temos aqui o exemplo de Ribeirão Preto. Em Ribeirão Preto, nós já temos sete lojas. Essa é uma reabertura in a population of almost 700 thousand inhabitants, and we are the expanded radius, which is where we arrive, through our FIGITAL reach, to 1 million, more or less, inhabitants. This store, we reopened in May of this year, is 170% of our expectation, and 40% of this sale is already through the FIGITAL format. A new store that we have already opened in Aracaju, we have four stores in our fourth store, It's already 130% of our sales plan. Aracaju, a city where we have grown a lot, the Northeast as a whole, especially in Sergipe, has been growing a lot. Almost 30% of the sale of this store starts on the internet, but converts to physical. But not necessarily the customer there in the store, but closing through CVC Zap, the digital tools that we have, through the assistance of our seller inside the CVC store, through our franchises, our franchise base that has a very relevant regional knowledge. Other two examples that we have to give in the interior, Dourados. Dourados, Mato Grosso do Sul, we opened our fourth store there, a city of more or less 250,000 inhabitants, it goes to almost 300,000, with the expanded rail of the REACH that we have at FIGITAL, we opened in the middle of this year, it is 300% above our sales expectation, the fourth store in Dourados, almost 45% of the sale of this store, já é através do modelo Fígital. E uma cidade pequenininha, uma cidade que certamente se não houvesse o modelo Fígital nunca estaria sendo aberta pela CVC, uma população de 36 mil habitantes em Sarzê do interior . . . . 46% of sales in FIGITAL. So it shows the success that we are having, both in reopening and new stores in the capital, stores in medium and small cities in the interior, combining CAPEX, cheaper OPEX lower for the franchise and the sale in the digital our franchise today no longer depends on the client entering through the store door because today he has a client coming in through the store door and through the computer door and artificial intelligence and all the technology framework that the cvc delivers to him so he can maximize his sales more and more and the conversion of these leads that we send to each store Now I pass the word to Felipe Gomes, our CFO, who will talk about our financial results of the third quarter.

Thank you, Godinho. Good morning to everyone. Let's talk a little bit about the capital structure. I think we made a great advance here for the company over the last few weeks, the last few months, where we were able to restructure our main debt, which are the debentures. So, here in this picture, we have on the left side the rating elevation that we had, so we recently received a rating from Fitch BBB, which is a big advance for the company in relation to the last ratings that it had been achieving in recent years. This classification does not exist well in Brazil, but it is considered investment grade, investment grade level, which is very important for us. We even brought here some premises that are in the FIT report, which drew our positive attention, of how they are seeing the company. So, a growth in margin and profitability, the improvement in the structure of the debt itself, which we are talking about here in this picture, a tourism sector in expansion, which they see, just like us too. We are the leader in the travel agency sector and the participation of exclusive products, which has also helped the company a lot in the capital of Giro and in sales in general, also highlights of the FIT report. On the right side, here in the picture, we bring a comparison of what the debt was like and how it was after this refining. So we have the columns there, where in the lighter blue were the payments, and then in the darker blue how it was, and I think these two boxes below sum up well, so we had a debt. debentures of R$ 710 million. We recently made a prepayment of R$ 160 million. So now, currently, our debentures are of approximately R$ 550 million. The way it was, it was a debt with a duration of one and a half years and now with 3.1 years, so we more than double the duration of the debt. And the cost is also very relevant for us, we had a CDI of 5.5% and went to a CDI of 4.5%. Remembering that, in fact, this comparison is up to a CDI of 7%, which was the original debt. So the company made an extraordinary payment last year to reduce this tax from CDI of 7% to 5.5%, and now CDI of 4.5%. Ah, and also very important for us, together in this renegotiation, from March of next year, this debt has a pre-payment clause, that is, the company has more flexibility to be able to think about other future structures, if possible. Well, now let's go here to the B2C page. So, in the first frame, On the left, we have the reserves confirmed. So, we had an increase from the third quarter of 2023 from R$ 1.345.000.000 to R$ 1.483.000.000, an increase of 10%, 10.3%. Without the impact of Rio Grande do Sul, it would be an increase of 12.4%. and in the 9 months an increase of 8% and without the impact of Rio Grande do Sul of 10.3%. So now here in the middle box of liquid revenue and take rate, we see a small drop from the third quarter of 2023 to the third quarter of 2024 of 0.4%, going from 218 million to 217 million. A good part is explained here by an extraordinary event in the third quarter of 2023 with bastante detalhe no release de resultado. Quando a gente vai para a análise do ano, então nove meses vinte e quatro contra nove meses vinte e três, a gente tem um incremento de nove por cento na receita líquida e do take rate de doze ponto seis para treze ponto um por cento. No terceiro quadrinho aqui da página, a gente tem o share de produto exclusivo, So Godinho has explored this point a lot and it is a very relevant point for us. In fact, the company has been working hard to increase this number and we have now reached close to 20%, which was a relevant number and that we have been pursuing. So we end the third quarter of 2024 with 19.5% of exclusive product participation, an increase of 9.3 percentage points in relation to the third quarter D23. And below we have some highlights, I think practically all of them have already been covered by Godinho at the beginning of the conference. So we talk here about the increase in exclusive product, which helps a lot in turnover, as we always say. There is an important issue here for us, which is the same-store sales growing 5% in stores outside large capitals, in the interior. which is also one of our focuses. There is also the question of the extraordinary effect of the third quarter of 2023, where we had a positive impact on the extraordinary revenue of 14.8 million reais. Without this effect, the take rate of the third quarter of 2023 would have been 13.6, which is much more in line with the third quarter of 2024. And in addition, as in the last quarter, we bring here the impact of Rio Grande do Sul on sales and liquid revenue. In the case of B2C, it was R$ 25.9 million in sales and R$ 9 million in liquid revenue. Now, moving here to the B2B page, in the first box on the left, we bring the confirmed reserves. A very important quarter for us, where we resume the growth of B2B top-line reserves. As we have been saying in the last few quarters, we needed a clean base quarter, without the impact of the millers and without the whole issue of the new, more profitable negotiations that we made with the agencies. So, in this first quarter, let's say, of a cleaner comparable base, returns to present growth with profitability, which is very important. Without the impact of Rio Grande do Sul, we would already be talking here about a growth of 2.1% in B2B. When we look at the nine months still impacted by the first trimesters of the year, with this issue of the millers and the contracts that we broke, which did not bring profitability to the company, we still see a drop of 8.2%. Without the effect of Rio Grande do Sul, it would have been 7.3% in the first nine months of the year. Moving on to liquid revenue and take rate, which is where we've been focusing a lot here at B2B, which is the issue of profitability. In this growing quarter, we also managed to deliver a higher liquid revenue, 5% or higher, and still a continuous growth of take rate, reaching 6.3%. In the year, 9 months against 9 months, we have a growth in liquid revenue, very expressive, of almost 16%. and the take rate going from 5.3% last year to 6.4% this year. Some highlights down here, some also already mentioned by Godinho before, the growth of the liquid revenue itself, which we talked about, which is profitability, the question of growing again after a few trimesters of drop in the top line and increase in take rate and liquid revenue, now also growth in the top line, A very important issue for us, the RA, which is our consolidator of airlines, returning to the leadership of the sector, and with a very adequate level of profitability, to our view, so another relevant information, and an increase in EBITDA in the segment, in the B2B, of almost 11 times compared to the third quarter of 2023. Moving now to the page where we bring the information from Argentina. Despite all the internal issues that we have been following from Argentina, political and economic issues, we maintain our position that we notice on a daily basis, together with the team, together with the company, an improvement in the business environment in the country. and there are already some signs of economic improvement that we hope to accelerate over the next few quarters. So, despite the whole challenge, we continue with a positive EBITDA, a strong cash generation, with liquid profit, and we've been winning the market share over the last few months. So, going to the left box of confirmed reserves, we continue to see the drop in the top line, but each time we see a drop smaller than in the last few quarters. So in the first quarter it was a drop of almost 50%, in the second it was already in the house of its 30% to 40%, and now we are already talking about a drop of 22%, being that a piece of this drop is a tax issue, of a tax that was reduced on the purchase of credit cards in the country. So a piece of this drop ends up being due to the tax issue. So, when we look at 9 months of 2023 against 9 months of 2024, we have a 37% drop in the top line, in the confirmed reserves. When we take this issue out of the tax impact, which doesn't make any difference at the end of the day, For CVC, for being a money that was completely repassable to the government, we saw a drop of 19.6%, 9 months against 9 months, 24 against 23. Moving on to the liquid revenue and to the take rate, we see a very similar drop with one of the confirmed reserves. The liquid revenue in the third quarter of 2024 against the third quarter of 2023 falls 22%. The take rate remains at 7.1%. When we look at the nine months, a very similar decline, a decline of 22%, but with the take rate rising from 6.7% to 7.8% year-on-year, nine months against nine months. The highlights of Argentina here, we have already said that this decrease in the sales gap, that is, it is falling less, we are already beginning to see this drop being reduced a lot, quarter by quarter, and we hope that it will soon reach a point of inflection. where we can start to show growth and no more drop. And despite the drop in revenue and EBITDA in the nine months, the company in Argentina recorded a liquid profit of practically R$ 30 million until the year to date, until September 24th, which is a very positive number for us. Another indicator of improvement in the business environment and a belief in economic improvement are these new franchises that we have been able to open. Argentina has also been beating its franchise opening records in recent months. So, only in the third quarter of 2024, we opened 18 new franchises around the world, which is our B2C brand in Argentina. and 29 during the first 9 months of 2024. So we end the third quarter of 2024 with 143 stores open, 143 franchises open in the country. And then there is another issue that always helps the company a lot, due to the dynamic of capital turnover in Argentina, which is positive, the unit continues to generate a good cash flow for the company. We now move on to the page where we bring some consolidated information about Brazil and Brazil with Argentina, liquid revenue and expenses. So, starting with the first picture on the left of liquid revenue and take rate, in the quarter we have a drop of 3.2% in liquid revenue. A large part of this value coming from Argentina, which we just mentioned, removing all the impacts of Rio Grande do Sul, the revenue would have practically been flat, even with the Argentinean issues. When we look at the year, 9 months of 2024 to 9 months of 2023, we have a growth in the liquid revenue of 3.7%, without the effect of Rio Grande do Sul of plus 5.8%. Again, even with all the questions from Argentina. And the take rate rising in the company, in CVC Corp as a whole, from 8.2% to 9.3%. The second box is a box of DNA expenses about liquid revenue in Brazil. And here we talk specifically about Brazil, the number that we come... showing a lot, so in the quarter we have a small increase of 3.6%, going from 135 to 140 million reais. There are also some extraordinary expenses that we describe a little better in the release, so we continue with our commitment here to maintain the expense always below inflation and as close as possible to maintenance in absolute values. In the year, and then it is even clearer to present, we have a drop of almost 9% in the expense in the DNA, going from R$465 million to R$423 million, and a very expressive drop in the percentage, going from 64% of DNA expenses on liquid revenue to 52.3% in the nine months of the year. And again, going back to the third quarter, closing the third quarter with 45%, which is already a number closer to our goal. The big positive impact here was the restructuring of the framework that we did over the months and the continuous review of contracts that we do all the time here at the company. to hold the DNA a lot, as we've been talking about. This time, this quarter, we also brought an extra picture that we didn't have in the last quarter, which is the sales expense over the confirmed reserves, so we can also follow this number. It's a number that, this quarter, presented itself very positively. We had a reduction of R$67 million last year to R$52 million this year, and then the ratio of sales expenses over the reserve fell from 2.4% to 1.8%. And in the nine months, when we look at the year-to-date, also a drop from R$ 183.6 million to R$ 155.2 million, a drop of 15.5% in sales expenses in relation to the reserves also confirmed in Brazil. Well, now we go here to the page where we also bring here some consolidated results, here in this slide Brazil and Argentina, so we even make a break here between Brazil and Argentina, some indicators and we bring here EBITDA and liquid result, I think the main information of the picture for us, that we are very happy here, is that, as Godinho also said, since 2019 that CVC Corp. did not present, did not register accountable liquid profit and in this quarter it happened. So starting there, in the first picture, at the top left, we have the adjusted EBITDA of the quarter, so looking at Brazil, Separated from Argentina, Brazil grows by practically 60%, going from R$ 74 million in the third quarter of last year to R$ 118 million in the third quarter, now of 24%. An increase in margin, going from 24% margin to 38% EBITDA margin. Argentina, based on what we've talked about before, a drop in its EBITDA, so it went from R$ 22 million of EBITDA in the third quarter of 2023 to R$ 6.5 million, a drop of almost 70% in the EBITDA of Argentina, quarter by quarter. And when we look consolidated, Brazil plus Argentina, an increase of practically 30% in EBITDA in the third quarter of 2024, going from R$ 96.6 million to R$ 124.7 million, reaching a consolidated 34% margin against the 25.7% in the third quarter of last year. Going to the bottom box, where we have the information of profit, liquid loss of the quarter, we see this strong reversal in Brazil, coming out of a loss in the third quarter of R$ 23,111.3 million, going to a profit of R$ 1.5 million, an increase of R$ 112.8 million between the third quarter of 2023 and the third quarter of 2024. In Argentina, we see a drop in liquid profit from the third quarter of 2023, which was 23.8, to the third quarter of 2024, which was R$ 12.9 million. But again, despite the entire scenario in Argentina, still presenting a positive countable liquid profit. In the consolidated, we leave a loss of R$ 87.5 million in the third quarter of 2023 for a profit of R$ 14.4 million in the third quarter of 2024, an increase of practically R$ 102 million from the third quarter of 2023 to the third quarter of 2024. Going to the last two charts, here on the right side, we have the accumulated adjusted EBIT from the nine months, that is, Brazil and Argentina. So we reach R$ 281.2 million in the first 9 months of 2024, an increase of 161% in relation to the same period of 2023, which was R$ 107.6 million. And the margin goes from 11.4% to practically 29% of EBITDA margin, 9 months 24 against 9 months 23. The adjusted EBITDA of the last 12 months, the LTM, we have already reached R$ 367.7 million in the LTM24, that is, in the last 12 months, an increase of 228.6% in relation to the LTM of the same period of 2023. So we go from R$ 111.9 million to R$ 367.7 million of EBITDA. And the accumulated liquid income of the 9 months below. In the first 9 months of 2023, the company had a loss of R$ 382.4 million. And now, in the 9 months of 2024, we are accumulating a loss of R$ 42.1 million. An improvement in absolute values of R$ 340.3 million. in this analysis of the nine months of 2024 versus the first nine months of 2023. Well, we now move on to the last page of our presentation, where we will talk a little bit about the capital structure and where we also have very positive information here regarding the company's evolution over the last few quarters. In the left box, which is the box that shows the generation or consumption of operational cash, In this third quarter, the company had a very interesting performance, where it reached R$ 118 million in operational cash generation. So, in this chart, we brought the evolution of some of the last quarters, since the first quarter of 2023, where it is very clear from where we started to where we are now, coming out of a consumption of operating cash of R$ 274 million in the first quarter of last year, to now reach a generation of operating cash of R$ 118 million. When we compare the third quarter of 2024 with the third quarter of 2023, where there is this line with this arrow, we go from a consumption of R$91 million in the third quarter of 2023 to a generation of cash of R$118 million in this third quarter of 2024, which gives a difference between one quarter and another of R$209 million. Another very interesting information, Godinho explored right at the beginning, with this generation of operational cash that we had in the third quarter, we went back to the same level of 2019, so it's been a few years that the company couldn't to generate such a positive cash flow in your operation. On the right-hand side of the general debt, which was a novelty that we introduced in the last quarter, we bring a little more detail about how the company's general debt is. So, going straight to the second line that is highlighted in blue, we have the liquid debt, so we have a very expressive reduction of the company's liquid debt from the third quarter of 2023 to the third quarter of 2024, coming out of R$ 639.2 million and going to R$ 433.7 million, a reduction in the liquid debt in a year of R$ 205.5 million. Then we bring other information that we know is relevant about the credit cards, about the receivables of the company's credit card. So we increased the level of unanticipated receivables, that is, that we can access if the company wants at some point. So we go from R$ 440 million to R$ 487 million, that is, an increase of R$ 46.8 million, that is, in addition to reducing the liquid debt, we still have more receivables to anticipate, if at any time it is of interest, and the receivables already anticipated, which is the line and anticipation of receivables, a very small variation of R$ 793 to R$ 806 million, of R$ 13.7 million. So when we add up all this information, that is, the company's liquid debt plus these receivables receivables to be anticipated and already anticipated, we see a very expressive drop of R$ 991.7 million to R$ 753 million, that is, an improvement of R$ 238.6 million. Another very important information for the company is to follow its leverage degree. According to our debentures and our creditors, we make the leverage account for the company's liquid debt on the last 12 months EBITDA. And in this quarter, we reach a leverage level that we consider very comfortable for the strategy, for the capital structure of CVC, of 1.2 times. So, we have a leverage index of 1.2 times liquid debt over the EBITDA of the last 12 months. Well, we have now reached the end of our presentation. Thank you for your time, and both Godinho and I are at your disposal to answer all the questions that may arise. Thank you.

Now we will start the Q&A session. Remember 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, so you must activate your microphone to ask questions. We only ask that the questions be asked all at once. Our first question is from Victor Rogatis, from Itaú BBA. We will open the microphone for him to speak. Please, Victor, you may proceed.

Good morning, guys. Good morning, Godinho, Felipe and the entire CBC team. Thank you for answering our questions. First, I'd like to know what your expectations are for liquid debt by the end of 2025. And I'd like to thank you if you can give us an answer for drivers of improvement, both in terms of EBITDA and turnover. And my second question is about Brazil's G&A, specifically, how we should think about the evolution from now on. you can think that this line could evolve in inflation or possibly even below inflation in the next few months. Thank you, guys.

Hi Victor, how are you? Felipe speaking, thank you for the question, I will answer both of yours here. Thinking first in liquid debt for the end of 2025, as we, and you have already anticipated the issue of the return on capital, we see that it will continue to maintain the same fall rate that we have been presenting in the last few semesters. I don't want to talk about numbers specifically, but I think for sure this liquid debt will reduce over the next few semesters, and we think that it will be at the same pace as it was in the last two or three semesters. When we think about EBITDA and turnover capital, I think that for 2025 it will come a little more by EBITDA than by turnover capital, but in turnover capital we still have space. This issue of exclusive product has really shown us which has a very strong impact on the company's liquid capital reduction. So there is still room to grow, a little less than it has grown so far in terms of speed, but there is still room. So I would say that this reduction will come 60% per EBITDA, 40% per capital return in the next few semesters. Thinking about the DNA, we haven't changed much what we've been talking about, the idea is to hold as much as possible, keep as much in line as possible, in line with inflation, so when you ask if you can imagine in line with inflation a little below, Cada vez vai ficando um pouco mais pressionado, isso é natural, os low-ranked fruits a gente vai colhendo e aí vai ficando um pouco mais difícil. Então, acho que manter esse nível de DNA com inflação e com crescimento voltando ainda mais a partir dos próximos semestres, acho que é um nível saudável para a companhia. Então, no fim do dia, o ratio desse DNA contra a receita deve continuar caindo, essa é a nossa expectativa, tá bom?

Just a quick follow-up, Fê. In this speech about the GNI in line with inflation and the growth of the top-line coming, with the opening of stores, etc., would it be possible to think that this GNI, as a percentage of the liquid revenue, could hit maybe 40 low?

That's the idea, between 40 and 45. That's our mantra here. Lower the 45, which we already achieved in one quarter or another, and keep it in this house, yes, without a doubt.

That's great, guys. Thank you.

Nada.

A nossa próxima pergunta é de Rubem Couto do Santander. Por favor, Rubem Couto, pode abrir seu microfone.

Good morning, guys, how are you? I wanted to hear a little bit about your expectations of B2C in Brazil. I think there are several moving parts here in the TRI starting to enter the TRIs, this acceleration of opening stores, the effect of the improvement of products, even S&M Storys above inflation, when we make the adjustments here. How are you seeing the dynamics from now on, fourth TRI, next year, is to accelerate this level that we saw now in this third trio, or keeping this pace is already what you are currently working on. And just one more word on this issue of spending, there in the selling line, can you also keep this level that is running there in the year a little below 2%, is that the idea? Thank you.

Hi Rubem, how are you? This is Godinho, thank you for the question. Talking about growth dynamics, I think it is also very much based on how the market capacity comes, market capacity, price dynamics, how the market operated Q3 and how it will operate Q4 and Q1 next year. In Q3, we had a reasonably difficult market here, both domestically and internationally. Companies are lowering prices, which, on the other hand, is positive for CVC, because you stimulate this holiday passenger, which is very sensitive to price, internationally. And domestically, you also had a price drop and a difficulty in terms of catch-up and RPK in function of the SK that is placed in the market, that is, to occupy the growth of the seats that were made available for sale. So we even had the retail numbers, kind of sideways, throughout July, August, September, it was not a month, well, if we can see more or less by the numbers of the other airlines, performance specific to Brazil, it was a more difficult quarter and we are seeing already in October and this half, let's say, of November, an acceleration So we are better in the Q4 than we were in the Q3. So we believe that companies have been continuously putting more capacity in the market, in the domestic market, and in the international, and in the Q1 of next year, this will continue. So we have a good dynamic in terms of growth of seats in the national and international airlines. The hotel remains in a very healthy environment for us. with average rates in a slow fall, but already with some fall, so it doesn't continue that strong growth that was of the average rates of the hotel both national and international, so this has already calmed down, it has been falling, not very deeply, but it has been falling a little bit every quarter, which also continues to continually stimulate this passenger, this passenger of leisure, so we see a growth for the next quarter that we came from B2C, right? With regard to Q3, yes. We expect an improvement.

Well, just taking your question about sales expenses, yes, this number that you calculated there, which is a little lower than 2%, it's in the 1.8% range, the idea is to keep it below 2%, something varying around this 1.8%, And what will allow us to grow absolutely is the growth of the top line. We will keep this percentage between 1.8% and 2%, but with the top line growing more now in the next few semesters, absolute numbers accelerate and help us a lot.

Perfect, guys. Thank you. We remember 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. A sessão de perguntas e respostas está encerrada e agora gostaríamos de passar a palavra para as considerações finais da companhia.

Well, guys, with great satisfaction, we just delivered the best set of results since we took over the company five semesters ago. A series of points here that are worth highlighting again. First, another record for opening stores, with practically 70% of these stores being opened by existing franchises in our system. which shows a great confidence of those who are already participating in our business. We opened 190 stores between Brazil and Argentina in the first nine months of the year. We are talking practically about the level that Rayadrogasil has been opening in the first three quarters. There is no other retailer other than Hydrogazil that is at this level of opening up stores. It is an important point that is worth highlighting and people who are in the system are continuing to invest in CVC, so it is a good indication. Double-digit growth once again in B2C, back to B2B growth, as we always said, it ended in comparison with the millers, we grew again, but with EBITDA 11 times higher than what we had in the previous quarter, with Recture Advanced back to leading the rankings. of sales within the consolidator segment, within the largest, in the main air companies in Brazil. EBITDA of three digits, finally passing R$ 100 million, with R$ 125 million in the third quarter, generation of almost R$ 120 million cash in the operational, at the same level of 2019, of the same quarter of 2019, which is a very important milestone for us. Again, I don't want to talk too much, when the company's valuation was six times higher than it is today, now with the same cash generation level in this specific quarter, the first liquid profit after 20 quarters. marking negative earnings per share, and a brutal reduction of leverage. This has always been an important theme of ours and of the market as well. We reduced leverage. When we joined the company in early June, the leverage was 5.7 times of liquid debt and EBITDA. Today, we fell in five quarters from 5.7 to 1.2. So, all these points, I think, demonstrate the profound knowledge that the team has. that we brought from the sector and especially from what we have been doing at CVC, this is nothing more than the continuity of the commitment that we took with our investors in the follow-on. Everything that we went there and promised, now is the continuity that we have been giving and delivering, quarter by quarter. Now, to continue the strategy, of more exclusive products, more forms of alternative financing, more physical stores, especially in the countryside, combined in this sale of FIGITAL. With that, we finish the second phase of the execution plan at CVC. Do you remember the first two quarters of 2023, which was the third and fourth quarter of 2023? It was the Back to the Basics phase. So I will give culture, I will change the management, adjust the management, adjust the governance, put the company's main strategies, fix the part of the expense, which is what we did. In 2024, we called this phase Foundations. that we were creating the financial, strategic and operational levers so that from 2025 onwards we could have this new CVC, this CVC of the next 50 years. And very recently we did an off-site with all the management of the company and also the board of directors of the company, where we crystallized with this what is the vision we have of the company for 2027. to the end of 2017, this cycle of the next three years. This only at CVC, only at CVC, derived 103 action plans that we have to be implemented in 2025, 2026 and 2027. And these action plans are basically focused on five pillars, which is where the company will focus in this 25-27 cycle, which is this third phase of CVC, which is a phase of focus on innovation, focus on growth, but obviously never giving up the level of profitability that we have now, including expanding it as we go deepening these strategies. Now, these five focal points of the company from now on, first, advance in technology, advance in price competitiveness, reinforce o nosso core business e outras alavancas e nichos de crescimento em mercados que a gente ainda atua, principalmente em mercados no Brasil. E tudo isso suportado com um robusto plano de engajamento do nosso time, que nós vamos divulgar aí para a liderança no nosso encontro de líderes ainda essa semana. Agora, tudo isso está sendo feito desdobramento mutuamente, PSC, no Balanced Scorecard, junto com a liderança e agora é foco em execução, de 25 a 27. Foco em execução, que é a grande fortaleza da história da CVC. Então, pessoal, muito obrigado pela atenção e até o próximo trimestre.

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