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Bom dia a todos. Obrigada por aguardarem. Sejam bem-vindos a... We inform that this event is being recorded and will be available on the company's IR website at ri.magaziniluisa.com.br, where you can find the earnings release and the presentation in both Portuguese and English. The link to the presentation in English is also available in the chat. During the presentation, all participants will be in listen-only mode. Later, we will hold a Q&A session. To ask questions, click on the Q&A icon at the bottom of your screen and type your name, company, and the language you speak. When you're announced, a prompt to activate your microphone will appear on the screen, and then you must enable your microphone to proceed with your question. Questions received in writing will be answered later by the investor relations team. Now I would like to turn the floor over to Fredy Trajano, CEO of the company. Please, Mr. Trajano. Good morning to all. Thank you for joining us in this conference call to discuss third quarter 2023 earnings. I'm here with the whole top management of the company. We will be available to answer your questions at the end of the presentation. Roberto Bellissimo and myself will present the company's results and then we'll be here for the Q&A. Well, this quarter, I believe, perfectly reflects a very clear direction that we gave to the Magalu teams over the year. From the strategic standpoint, we needed to grow the marketplace, with a respective increase in profitability. And from the technical standpoint, particularly for the 1B team stores and online, 100% focus on increasing the gross margin to offset increases of the file taxes that we observed this year. if possibly increasing market share but not necessarily and when we look at the numbers of this quarter we see that we delivered exactly that it consolidates in numbers this direction that was conveyed to the teams along the year we had a historical gross margin of 30.4 percent historical high the highest in the last six years and we were able to grow gmv five percent in a market context where a part of our results and the volume, which is the part of durable goods, remains challenging. So I consider that achieving this gross margin and still post a 5% GMV growth means that the work was very well done by the teams. When we break down the 5%, looking at the different channels, we see that in physical stores, we grew 2% in the quarter. For physical stores, the scenario started more challenging in the quarter in July and August, and it ended really well in September. We have observed now in October, and particularly in November, very positive physical store sales. So we have 15 days of November. In the last Saturday, we had the best sale for Saturday in the year, with the exception of the fantastic sale that we normally hold in the beginning of January. So we see that the physical stores are picking up again. Of course, we have a comparison base of the World Cup last year, which makes comparison a little harder. But in absolute terms, we are achieving record marks. Last Monday was also great yesterday. And we're very excited with what we observed in both October and in the beginning of November. From the online standpoint, we have two different stories. The 1B story is, like I said, the tactical point was passing through default. We did that in Magalu and a good part of the companies of the group in this quarter. We had less pressure on the teams in terms of market share gain so that they could achieve the ideal margin profitability so that from now on we can grow. So still with a focus on consolidating this in the fourth quarter, but looking at the horizon, we believe that this will continue to grow. Magalu is also concentrated in durable goods. We have a diversification in the long tail of 3P. I'll speak more about that. As durable goods returns with a declining interest rate, the sector is highly cyclical, highly cyclical category. So 1P and stores will be definitely sailing this and will have a tailwind pushing us forward. In November, the perspective of 1P is looking better. but still with the perspective of consolidating our gross margin that we achieved in Q3 and having a full pass-through of default. From the strategic standpoint, speaking about European, I'll spend more time speaking about this channel, which was the big highlight of the quarter. We grew 25%. In Q3, accelerating growth. And if we look at average annual growth for the last four years, for your average annual growth, 51%. So it's solid, but more important than the 25% growth. of marketplace sales gmv and 3p is the increase in marketplace take rate we grew 44 percent our marketplace derived revenues and roberto will explain this better a good part of this growth of gross margin came from 3p and from increased revenues that have been included in our results We're seeing this along the quarters, but in Q3, there was a big highlight for GMV and revenue increase. In 3B, today, the more it grows, the more share gets in the company, the higher our profitability and our operating margin. Next, 3B. In the past call, we said that 3P had become the second most representative channel of the company, surpassing the physical stars and have been operating for more than 65 years. Now 3P has a 30% share of 3P sales as a percentage of total sales. That's the channel we are betting on the most in terms of growth. And like I said, it's been contributing a lot to our profitability ratios. Now, to explain this growth, I would like to speak about increase in the number of sellers. We achieved 323,000 sellers on the marketplace platform in Q3. So we grew quarter on quarter and in number of offers, 114 million offers available on our platform. We don't speak a lot about that, but we have evolved a lot of seller platform. We included this in our earnings release and it's in our presentation as well. We had some very positive changes. Today, our sellers are complementing our platform a lot. Today, they can manage all their stores through the Magalu super app. With the same customer app, the sellers can use to manage the store. They used to have to access a different app. Now they can access the Magalu Super app, make suggestions about the store, look at their reputation, post their offers. So it's a big change that makes life easier for sellers, makes the process a lot more fluid. We also created Magalu Indica, which is a seal, an offer program for our customers so that we can present the best offers from our sellers. So the fulfillment is in Magalu Indica, the ranking of the best reputable sellers, everything is in Magalu Indica, as well as some 1P items. And the items of the company's group that sell through Magalu, Kaboom, Netshoes, etc. are in Magalu Indica. So Magalu Indica is like a seal of quality. It ensures that our customers will have access to the best offers. 114 million offers on your platform, you have to have some kind of curatorship to facilitate the search and the choice of our customers. It helps offering what's best for our customers on our platform. We also launched an alternative to drive interactivity with the customers, which is seller chat, where sellers can interact with customers, offer coupons during this interaction it is chat it's not a q a it's a chat another way to interact on the platform and other platform improvements are being developed and deployed every month Regarding 3P, I would also like to highlight that we have been growing a lot the base of sellers in new categories. The diversification movement at Magalu happens particularly through 3P. We see this in the charts presented by the company. A good part of the new sellers come in new categories. When we look at units sold, 86% of products sold on 3P are new categories that complement our 1P. When we look at GMV, I'm talking about 52% of the total of the group. including 1P. So more than half of our online comes from new categories. The new categories will drive growth and profitability looking forward. To give you an example of these categories, I will mention some families of products more than categories. Families of products that have grown this quarter. In running shoes, we grew 69%. In fitness and bikes, 84% growth. In tires, auto parts, we grew 84%. Vacuum cleaners, we grew 63%. Lawn mowers, 85%. You see, these families of products that we are prioritizing, families that we believe have a positive unit economics, tickets normally above 100, 200 bureaus, And we have the recognition of customers that will sell high quality products, not counterfeit products. We sell brand products and we have the right conditions to sell all of these products. And we are always making improvements for these growing families of products. We want to improve navigation. marketing, and how we publicize these categories to our customers. I want to speak a little about logistics. Another quarter where we improved our fast delivery indicators. 80% of all marketplace offers passed through Magalu entregas or Magalu delivery. If you look at 3P, actually 1P, we are a benchmark. A delivery in up to one day, we increased to 81%. And from the standpoint of 3P, there was a 51% leap from 41% in the prior quarter to 51% this quarter, plus 10 percentage points in a one-day delivery. It has helped 3P, it has helped conversion, and it has improved the NPS of this category. One highlight is the fulfillment. Fulfillment has evolved really well. 14% of 3P orders go through our fulfillment. 2,400 sellers are using this mode. More than eight distribution centers enabled for that. Some in the Northeast, where we did not have that option. I'm sure that sales will increase a lot in that region, which is already important for 1P. 70% of light products are shipped from the Lovato DC, and sellers who join the fulfillment have a 25% reduction of costs. Their conversion rates increase in 25%. What's interesting about our fulfillment is that this is truly a multi-channel operation. Our fulfillment in DC is the same DC of the physical store and of 1P, and we have great benefits in multi-channel, in store pickup. Our costs are lower because our operation shares the 1P infrastructure, and with that, the cost is marginal.

I would also like to talk about Magalu Ads. But before we talk about Magalu Ads, let's talk about the physical stores and their important role in multi-channel operations. We have this slide to show before and after physical points. Many people ask me about physical stores. It's important to understand physical stores not only as a sales channel purely, but also with a competitive edge toward 1P and 3P operations. If we consider physical stores, a couple of years ago, 100% of the orders were sold by the physical store. Today, when you consider physical store at Magalu, 70% of the orders are not sold in the physical store. Take, for instance, orders that go from a natural sellers and drop the product with a drop of agency at the store or Caboon order that was bought on the side and is going to be store pickup or 3P at the store. So it is a point of support, a local point of support to our ecosystem and a competitive edge that helps us with delivery times and level of service for sellers in other times. So it is part of a greater component. of our strategic positioning and our competitive differential on a sustainable matter. Magalu adds a couple of details on monetization. When it comes to take rate, we achieve a maximum pass-through level for sellers. Monetization should come now from other means, and they will come, for instance, from Magalu ads. Here we tripled our revenue at Magalu once we introduced the sponsored Search in the previous quarter, like I said, and now we're also expanding Magalu Ads to all the companies in our ecosystem. This quarter, we had Instalu Magalu Ads in Netshoes, the same platform for all channels of the company and also content channels. The first step to expand to all company channels. Another way to monetize involves our FinTech. Mawad is here. He can tell us more about it. despite the moment scenario we increased by 20 percent tpv at fintech more than 10 billion now 58 entrepreneurs that are in the digital account sellers who are getting their sales via digital account for Magalu Pay, an account that we created for them by 100 million TVP. And we also work on PIX operations for Magalu and other group companies via the FinTech engine, more than 8 million transaction, PIX transactions in Q3, also showing the importance, our importance, bringing us confidence, lower costs. and also showing the importance of Magalu Payments for the whole ecosystem. We also launched a partnership with Bitcoin so customers based on our wallet could also buy Bitcoin. We have a Cyber, a Crypto Friday now actually with discounts if you want to buy currency or coins. cryptocurrency via Magalu ads, you have the cash back. So it's another way to drive this issue. Now, before I turn it over to Bechtel, I would like to highlight our subsidiaries. They also were very challenged with default pass through this year. Epoca between 8 and 10 default downwards and pass through Netshoes 7, Kabul 5, And operations were also fine this quarter, particularly when it comes to net income. Think about net shoes increasing 25% marketplace vis-a-vis last year, 21 million net income leader in the category. Very positive job, better than second quarter. Epoca Cosmeticus has been through a change in the ERP, financially, commercially. The process is always very complex and very intricate. Despite of that, it managed to close net income this quarter and Q4 is very positive as well. very or great efforts by the team and they managed to have a successful pass through and kabum sold 1 billion amazing 30 million net income despite all the default that got in and for the first time in a reclamiaki ra 1000 and also positive results our subsidiaries like i said have met our expectations finally Let's move on to the financial highlights. And very briefly, I would like to share with you the conclusion of the company deployment this year after the board of directors on this anonymous complaint. And this was very stringent, transparent and independent. Nine months of work. led by PwC and Tosini Freire, which is the leading lawyer firm, analysis concluded that the anonymous complaint is unfounded. And they also found and reported failures in the accounting process of some bonuses, and the performance requirements were not fully complied with, with the right competence. So these things were already corrected. So the company checked, confirmed, acted, and let's move on. So now I turn it over to Beto, our CFO, to give you more detail on the conclusion of the process and also the measures made by the company to mitigate the failures that were found. So we're going to dive into this, and we'll also be here for your questions in the Q&A section. Thank you. Good morning, everyone. Thank you for joining our earnings conference call. When it comes to the adjustments mentioned by Fredy, in practice, they led to some advanced bonuses. They were resubmitted, so we revised and we corrected the results for 2022 and first quarter 2023. These results, are now already on the right accounting system on an accurate basis considering all the bonuses that were posted according to the right compliance and the values they refer only to these postings these entries so they refer only to this adjustment in bonus. And the net impact stemming from this adjustment is about 830 million reals on June 30 shareholders' stake. It's worth mentioning that there was no change in the company's cash flow, operating cash flow. and no difference in cash positions, in debtness, no change whatsoever. The adjustment was specifically in the bonus account. On the next slide, we talk about the measures that we've been adopting in order to mitigate and try to eliminate risks. Firstly, considering the implementation of the system that we are deploying and already involves most of our suppliers, We have our own system that works with management of the funds. And just to give you an idea, in 2022, we issued 16,000 debit notes involving 50,000 campaigns of products over the whole year, full year. So we needed to invest in the system because this system validates each and every campaign checked and approved by suppliers and also validating the campaign performance and also checking total sales, for instance, generating the debit note electronically with a digital signature, etc. So the system is very robust. allows us to improve a lot in the management process of our funds and make sure that we are posting as we did already in Q3 with all the bonuses and funds in the right manner on an accurate basis. In addition to systems, We also talked about mechanisms of governance that we deployed in order to segregate different functions. And we also implemented a new process, a new policy, actually, of the commercial purchasing process. And we also revealed the risk and the routine of our negotiations. So a number of measures in order to improve governance and controls. Additionally, there is another launch, another independent action. Apart from the bonus, this quarter we recognize tax credits related to peace coffins on bonus that were received by suppliers in previous quarters up to 2022. This bonus, they were taxed So here we are posting these taxes based on a recent decision by the Supreme Court of Justice with the opinion of legal advisors. So we had a positive impact of 507 million Reals in the company's net equity and also the earnings for Q3. On the next slide, we show a little bit of the effects over time. Bonus adjustments, therefore, in total accounted for R$ 830 million, like I said, in net equity. They lowered results prior to 2022 and results for 2022, but it's important to say that they improved recent results in the first quarter with bonus posted over year 2022. taking into account 2021, so improving the results in the first half of the year. And when we mention the effect of tax credits and also the accrued basis prior to 2022, then we see an impact on net equity prior to 2022 of 189 million, over 2022, 226 million, and in the first half positive at 923, totally 322 million. This adjustment, once again, no cash effect, accounts for 1% of the company's assets and 3% of the shareholders' equity of the company. What about the highlights? Fred already mentioned a lot about our growth in sales, highlighting marketplace operations, an increase in gross margin, Just bear with me for a moment.

I'm going to change my microphone. Is it better now? Moving on to the highlights. Is it still low? Is it better now?