Cyrela Brazil Rlty S/Adr

Good morning, ladies and gentlemen. Welcome to CERAWA, Brazil Real TSA's Q1 2023 earnings call. We have Mr. Rafael Horn, CEO, and Mr. Miguel Mikkelberg, CFO and IRO, with us today. This call is being recorded and simultaneously translated. You can hear the translation by clicking the interpretation button. To those hearing the English translation, you can mute the original audio by clicking mute original audio. Also, you can find the slide deck in English on the company's investors relations website at www.ri.cerelo.com.br. During the company's presentation, all participants will be in a listen-only mode. After the presentation, we'll have a Q&A session. To ask a question, please click the Q&A button and enter your name and organization. When your name is called, a request will pop up on your screen to unmute your microphone before asking your question. We would like to inform that any statements that may be made during the call related to Cirella's business perspectives, operating, and financial targets are projections made by the company's management that may or may not occur. Investors should be aware that political, microeconomic, and other operating factors may affect the future of the company and lead to results that differ materially from those expressed in such forward-looking statements. To open Cerela's Q1 2023 earnings call, I'd like to turn it over to Mr. Rafael Horn, CEO.

Mr. Horn, you may proceed. Good morning, everyone.

Continuing the good results reported in 2022, Cerela's operation in the first quarter of 2023 showed satisfactory performance. even in a challenging macroeconomic scenario, and uncertainties regarding supply and demand in our segment, the company remained true to its strategic planning of continuing to launch unique developments in selected regions, always offering a differentiated experience for the customer. We launched eight projects in the quarter $1.3 billion, $479 million has already been sold, added to an inventory sale of $1.1 billion. We totaled $1.5 billion in net sales in the quarter, 18% higher than the same period last year. Regarding the financial performance, it showed resilient results at the beginning of the year. $1.3 billion net revenues, slightly above year-on-year. Gross margin, $30.7 billion. Net profit, $164 million. 12.7 net margin and ROEs 12.3. Once again, one of the highlights was the company's low leverage at 6.5% a quarter. The company understands the magnitude of the challenge that the year 2023 poses and will continue to operate with diligence to maintain its positive performance, always seeking to maximize its return for customer shareholders and other stakeholders. On to our operational results now. Thank you, Rafa, and good morning, everyone. On slide five, we'll address Cerela's launches. In Q4, we launched eight new products with a PSV of 1.3 billion, 30% higher year-on-year and 52% lower quarter-on-quarter. The company's stake in the volume launched in the quarter was 69%. Excluding swaps, the volume launched in Cirela's stake was 875 million reals in the quarter. On to slide six, we'll talk about our sales performance. In the quarter, pre-sales reached 1.5 billion reals, a 42% reduction quarter-on-quarter and 18% year-on-year. Excluding swaps, Sales reached 1.1 billion in sales estate. The state of Sao Paulo accounted for 56% of our sales. On slide 7, we'll address sales of speed. The company's CSO in the last 12 months was 49%. Looking at sales speed by launch vintage project launched in Q1 have been 36% sold. On slide eight, we'll talk about our inventory. At the end of the quarter, inventory at market value was 8.7 billion rails, 4% lower quarter on quarter. The change in our inventory can be seen on the chart on your left. On slide nine, we show our finished units. We showed 11% adding the inventory projects delivered along the quarter and pricing of units at market value. Finished units increased by 4% quarter on quarter. On slide 10, we'll talk about delivered units. Cirella delivered 10 projects in the quarter at 2,714 units and a PSV of $1 billion.