Good morning everyone. Welcome to another edition of Resultados em Foco.

I am the CFO of Itaúsa, Priscila Grecco, and it's a pleasure to be with you for the discussion of the first semester of 2026 and talking about the perspectives for the second semester and of course answering your questions. To run this live alongside me, we have Alfredo Setubal, our CEO and also IR Director.

Welcome, Alfredo.

Good morning, Priscila. Good morning to the investors, shareholders.

Let's have a nice event, lots of news.

Before going the agenda, we have the simultaneous translation into English. If you wish to listen to the translation, click on the flag for English.

Submit your questions clicking in the message box in the platform and also over YouTube and LinkedIn comments and also using the X platform getting the hashtag #ResultadosItausa. Please take part.

We will start the agenda with our presentation and a brief update on the business environment, getting Alfredo's opinion on the scenario of the first quarter, first semester, and then we will go through the results of the investee companies. We talked about the liquidity management, we also go through proceeds, the declared proceeds, and also by Itaúsa, and also updates for our capital allocation strategy, and then the final ideas by Alfredo, and then the Q&A.

First theme here, which is traditional for our talk, talking about the business environment. We talked about the perspective of reduction of the interest rates and an accelerated geopolitical conflicts that still linger.

I wanted you to get your opinion on how did you see the perspectives on what to expect over the next quarters.

We had the first quarter very much aligned with what we've seen last year. Brazilian economy growing very slowly, interest rates very high, an economy that's decelerating.

An environment that is not helping business. Fortunately, our portfolio has reacted well regarding this political, economical scenario.

We've had great results. We have a perspective for the second semester similar to the first one.

Economy still growing very slowly, even with a bit of a deceleration. We see the consumption of families being reduced due to the indebtedness, which is a lot, very high, regardless of all the incentives that the government has placed in the economy.

Have over R$200 billion, we do not see the economy growing or giving a significant evolution signal. Second semester, we have the elections, which are always an uncertainty factor for the shareholders and consumers: who wins, if something changes.

Our scenario is still of low economic growth. We've seen a reduction of the interest rates.

It's possible that we might see some reduction, and the inflation has dropped because of the low consumption, there isn't an inflationary consumption. There is the energy, Iran war that affects oil, but the economy itself is very slow.

That should be kept for the second semester, but also for next year. Next year, we still have an economy that is very decelerated, inflation still low, but above the threshold of 4.5%, which is the top of the threshold.

It's a scenario that is challenging. We might see a little bit increase in delinquency in the bank, and even the clients of the companies.

It's a scenario that demands a lot of caution. Itaúsa, nonetheless, has a resilient portfolio, well-managed, with companies with results.

Our position is very good in this challenging scenario.

Alfredo, let's look at how we close these results in the quarter. Let's see this challenging scenario that Alfredo has gone through, how it affected the results of Itaúsa and the portfolio.

Let's talk about that our result was very resilient, very solid. Record results reflecting the quality and resilience of the portfolio.

We have R$9.6 billion in revenue, 22% growth. Got an ROE of 21.2%, 3 percentage points above last year.

Non-recurring, about R$1 billion, R$900 million that stem from a controlled non-operational company, Itautec, they recognized gains in legal proceedings and administrative proceedings. The result is here.

When we look at this effect, we get to the recurring net revenue, R$8.8 billion, double-digit growth, 12%, and ROE 19.3%. Our net debt, a bit of an increase in regards to the previous year due to the usage of cash that stemmed from the capital allocation that we've done.

The net debt is closing the quarter in R$1.2 billion, the net assets almost well, 90 almost R$94 billion, and the market value of our portfolio, R$190 billion almost, an important growth, almost 20%. Let's talk about how our shares have worked.

In a very consistent way, we've performed above the market benchmarks in any time frame. So 10 years, our shares are valuing against 234% of Ibovespa.

If we compare with CDI and the dollar, our performance of 437% also is very good. Other time frames, and also what we've performed this year in the accumulated until August, our shares have gone double of what Ibovespa has done in the same period, 15.4%.

Very consistently, we're showing to the market our capacity to generate value for our shareholders. This reflects our remuneration or payout in good results and very consistent, very solid, being reported to the market.

This share, even though it has an important valuation in this time, we have potential of valuing. When we see the discount, we have a discount when I comment of about 19%.

We have the value of the portfolio, R$191 billion, 177 are Itaú Unibanco, R$16 billion all of the non-financial sector portfolio, Itaúsa at the end of June, and we have a discount of 19.5%. The threshold of discount, which would be above what is fair, what is adequate, considering the quality of our portfolio, the results that we presented, but we've seen an evolution that is very expressive.

We started in the year with a discount of 26.1%, and this discount has been, 36.2%, has been reducing in the first semester, and we closed July with a discount of about 19.5%. This discount is below the records of what we've seen with Itaúsa.

The recognition of the market that the company is performing well, and our portfolio has delivered good results, and also recognizing that shares have important upsides with the end of the fiscal inefficiency. Regardless, the discount is still high in comparison to what we consider the target price of Itaúsa and our listed companies.

The discount implicit is about 15.6%, which represents still an upside in our shares of 4 percentage points. This is based in three big fundamentals.

First one: end of the fiscal inefficiency for next year, end of the PIS and COFINS tax in Itaúsa. The main cost is the payment of PIS and COFINS tax over the interest of our capital that we receive over the investee companies, especially Itaú Unibanco.

The last year, that was R$860 million. An evolution, an expectation that is very good for next year that we're going to stop having an expense of R$860 million.

Proceeds non-financial, we've seen a growth that is very expressive. Proceeds had been R$1 billion last year.

We still keep it in the holding, facing our costs of which a great part is due to the payment of the PIS, COFINS tax. There is a combination of the two items, the big two fundamentals.

They generate a great perspective for our shareholders. Three: investee companies and non-listed, NTS, Copa Energia, and Aegea, unlocking value if we have a bit of a recycling in our portfolio, and also a liquidity event, including the IPO that will happen with Aegea.

Very important for our shareholders. Let's talk about the investee companies.

How do we see the results of 2026? We had the bank reporting IFRS, the bank getting to the ROI of 22.8%, R$24 billion recurring IFRS.

The delinquency is under control, efficiency level getting to one of the best thresholds of the bank. Dexco, very good, with better volumes and better mix and better margins in the period.

We also saw advances in the segment of utilities, but here, even though we had an expressive growth and an advancement on the deleveraging of the company, we saw a drop due to the impact of the smallest price of soluble cellulose getting to our investee company. Alpargatas delivering a result that is very consistent with an evolution, 60%, getting to R$354 million as a reflection of all the turnaround process, higher volumes, the international market getting to a recovery that is very interesting, and also a report of the better mix of products.

Motiva, an increase of 38%, R$1.3 billion, a reflection of all the operational efficiency, new conditions, a growth of volume and the rearrangement of tariffs, solidity also to the company's result. Copa Energia, double-digit, very robust, very consistent.

Even though we've seen stable volumes, they are very consistent in having the maintenance of the spreads and an efficient commercial strategy. NTS, and we have the ending of the contracts of the company that was delayed temporarily, but in worse conditions than the ones that existed in the legacy contracts that we've had in the company, reflection of deflation IGP-M on the tariffs that are charged by the company.

A result that was a drop of 16%, but still a robust revenue of R$1.5 billion reported in the semester. Aegea, operational growth very very as expected, very good, an evolution of 48% of the EBITDA, as an evolution, ramp-up, readjustments of the tariffs, and new economies.

It's a solid growth. This has reflected in the company growing consolidated 80% in the period.

In general, all of our investee companies performing very well in a scenario that is very challenging. Going through the net revenue, we see the semester in 22% growth, and we have R$857 million of non-recurring effects, the higher from the investee non-operational Itautec.

Here is the recurring result of R$8.8 billion. A great deal of it comes from the investee company Itaú Unibanco, a great part.

The non-financial sector has contributed R$600 million in the results of equivalency and with a robust growth of 30% semester on semester. Something that we've reinforced in the calls is the rhythm of growth that is accelerated, considering the ramp-up of these new conditions with a lot of growth that we will demonstrate quarter on quarter.

We have the reducers of our result: the cost of the holding, the result, and the financial result that we can comment. Talking about the investee companies in the non-financial sector, growing 34%, getting to R$600 million of which we have big contributions of Copa Energia, NTS, and Alpargatas.

I believe that all the investee companies are contributing positively to our results. The other one is just an accounting effect of amortization that was recognized in the acquisition of the investments and infrastructure assets.

Positive growth of the investee companies. Talking about the composition of our own result, our own results are composed by the tax expenses.

There is no big evolution in the period. We have a stable year on year.

Talking about the financial result, we saw a worsening on the financial result on the period, but due to an explanation that has to do with the profitability of our cash flow, because less a cash flow in the period, we have a usage of cash flow due to the first capitalization that was done in the first quarter of Aegea, but also as an effect with the anticipation of the dividends that we've done last year with the taxation of the dividends. We have the opening of the cash flow one from the proceeds, and then there is an effect in the profitability that was mitigated by the smaller expenses in the period and a reflection of the liability management, bringing a reduction of the expenses, considering that the average Selic rate of the first semester was higher than the first semester of last year.

A positive reflection of the financial management of the company. Liquidity management is something that we've demonstrated our results in the initiatives that are implemented in the last years.

In 2022, we started our process of deleveraging, prioritization, and the reduction of our debt in the company, making lots of movements in the repayment of debts, which led us to a reduction of 80% of our net debt, which is R$1.2 billion in the period, and also an increase of the average deadline of the debt, which is 7 years. An important growth to the scenario that we had in 2022.

At the same time that we increased our debt, we could reduce the cost, and now we are in a threshold that is 11.2% for this average deadline, which is very healthy. We have coverage, which is very healthy, no amortization until 2032, gives us a lot of comfort.

All this financial management was recognized by the rating agencies, and they continue to give us AAA for the risk of credit. Talking about the amortizations, there's no amortization or there's a bit immaterial until 2031.

We have in 2032 in terms of liquidity, we close the semester in R$2.2 billion. We have to comment that this cash flow does not include the value of Itautec, and it doesn't include the capitalization that we've done in our investee company Aegea, R$330 million.

The trend is that the cash flow increases with the two events that we've had in this event. Leveraging very healthy, we have the balance that is very robust, the record results in the balance sheet, very robust, very healthy, and prepares the company for any cycle of investment when the scenario makes sense, and also a project that is economically viable.

This is it. Talking about the proceeds, I think that all the performance of our shares and the results of the portfolio in Itaúsa is also translated into proceeds that are very attractive to our shareholders.

R$2.8 billion in the first semester of billions declared in proceeds, growth of 3% in regards to the previous year. Let's consider that the previous year is a threshold of proceeds that is very high.

A growth that is very interesting for us, and it gives us a dividend yield of 10%, which provides us amongst the companies, we are one of the companies that give dividend yield that is very significant and one of the best in B3. Of these 10.8 billion, we have 2.3 pending of payment, 21 cents per share.

Yesterday at the board, we have the payment date, which is going to be August 28th. These proceeds that are declared in March In June, we will pay this 21 cents per share.

Let's talk about the non-financial sector. I commented that this is one of the fundamentals that lead to the upside of our share, and in fact, we see an expressive growth.

We had the threshold of the non-financial sector, which is R$900 million. This threshold is growing year on year, and it gets to 2025 R$1.2 billion, and if we consider the last 12 months in June, we have R$2 billion of received proceeds considering that we received R$973 million in Itautec.

A growth with non-recurring of Itautec of 27%, growth that is very robust. We continue with the practice of not sharing these proceeds for the shareholders, considering the cost of holding that we have now.

It's a positive expectation that next year we will reduce and the proceeds, they have a trend that is relevant. Positive results, and also capital allocation in the last years in the last cycle of investment since 2027.

We have R$11 billion, and we have capital allocation movements, and here in assets that are in our portfolio, we invested R$1.2 billion in two assets in Aegea. We received R$1.2 billion in investments, we see an opportunity to increase the participation in Alpargatas.

We did an investment of R$100 million in Alpargatas. We have to comment that the return of this portfolio that we created since 2020 2017 got to a threshold of about 16% a year.

Above Ibovespa, above CDI, and close to the return had we invested the R$11 billion in the shares of Itaú Unibanco, we would have very similar results through this. The big results, which is finding assets, relevant assets that would deliver levels of return that are similar to the portfolio, we got, and it shows our assertiveness in the capital allocation process.

Let's talk about the two movements, starting by Aegea, which is a company that we consider a lot of excellency, positive records of turnaround of the concessions that they acquire, demonstrated a record of growth, very robust. We see the company growing the EBITDA, and it's a record which is very consistent of growth, and it has the higher growth by the base of assets that they have in the portfolio that is very expressive.

With an attractive return within what I just showed you, we have the important results of tier Aegea, this investment, an interesting return besides the positive. The company allows for the utilities expansion, which is very interesting to lead us to do an investment in this company of R$1.2 billion, with two movements of capitalization that happened this year, elevating our participation from 12.8% to 14%.

We didn't have any relevant effects in Itaúsa, not expected for the next quarters, and all the funding of the operations are with our own results. We have the impact here, and the second capitalization probably we should use the resources that are going to get from the proceeds of Itautec in such a way that we're not going to have a big impact in our cash flow.

It's important to say that alongside this last capitalization, we also celebrate an agreement that guarantees the protection of the return, this reference of the return of IPCA plus 15% a year, that is given through adjustments of participation in certain conditions established by the agreement, but also in the occurrence of the IPO of the company. A mechanism that also has as an objective protect our shareholders and maximize the creation of return on this investment.

Now looking at the other investment that we've done, we have windows in the market: Alpargatas, also increasing our participation. Alpargatas, everybody knows, it's a very strong brand, Havaianas well known.

It's a company that has presented, after the turnaround process, the operational discipline, a lot of focus in achieving operational efficiency, presenting strong cash generation in the period. We realized that the company still has potentials for growth, and especially with an improvement of mix and with a penetration that is higher in the specialized channel.

Internationalization still in the agenda of the company. We've done a redefinition with the investment on the abroad, with a focus in specific regions.

We realize that there is a lot of potentials to capture this international value. This investment, we've done purchases in the market of shares from last year, and we got R$100 million of investment, making our participation to be 29.4% to 30.6%.

Also, we didn't see a lot of relevant effects in the result, and all the funding was with our own cash flow, that cash flow that I showed, R$2 billion with this leaving of cash flow with this investment. I think it's important to mention that all this acquisition had an average price per share of R$10.8 per share.

If we consider the quote for the closing of the company yesterday, we have an accumulated return on the investment just in this investment which is 24%. It shows the assertiveness of this process of the capital allocation, making this acquisition at the price that is adequate, highlighting the return to our shareholders.

With that, I get to the end of the presentation. Before we go through the closing arguments, I'd like to remember that Itaúsa publishes the news that are relevant for the holding, the Insights newsletter, and also in the social networks.

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Now, I'd like to give the floor to Alfredo. We gave a panorama on the main results, a lot of good news.

I wanted you to do your summary of what you've seen in the highlights of Itaúsa.

Thank you, Priscila. Congratulations on the presentation.

Our investors and shareholders are very satisfied with our numbers. As I commented at the beginning, we are living through a scenario that is very challenging in the economy in Brazil and abroad, and our portfolio has been very resilient to face this.

I'd like to say the strong results. They are still that the main investment, and with a performance that is very superior to the competitors, good risk management, control of delinquency, cost reduction.

The bank is also in a digital journey to face the new competitors. Our main asset, which is Itaú Unibanco, had once again an exceptional performance.

With the infrastructure Aegea investment, Motiva, NTS, and Copa Energia, we had solid results with a good cash generation. Obviously, these companies, they have a big debt due to the business itself that demands an investment in its concessions of trains in the case of Motiva, which is very big, but they are generating cash flow that is enough, facing the financial expenses and facing the investments that are mandatory for the concessions.

The final results would be industrial. Two companies that we have: Alpargatas, which is for the second year showing solid results, Alpargatas growing both in Brazil and abroad, strong cash generation and very good.

A growth process, we have strong plans of growth in Brazil and abroad, a robust plan in the board of Alpargatas. It's a company that is generating a lot of cash flow and a lot of growth and benefiting itself and making Havaianas growing in a sustainable way.

Dexco as well. Dexco has been facing challenges and we've had good going through this period after the pandemic in '22, '23.

The market of construction has retracted, but I think that this year we've shown a good discipline. The company is deleveraging.

We got to levels of leverage that were high, considering the economy growing little, the main market a bit retracted, we could bring the debt, net debt EBITDA to a level three, still high, and we hope to close this threshold in 2.5 this year. The company is recovering market, is operating with better margins.

We are in a good path so that Dexco can generate results and reduce the investments. It's a solid portfolio.

We have the challenges, interest rates still very high, and so that affects the companies that have more debt that have, by its characteristics, such as Aegea and Motiva. We are very confident with the performance of all of them, specifically Itaú Unibanco.

We believe that we are in a good moment, as I told you, with good perspective of keeping profitability at a very healthy threshold. In general, we got into the second semester in a good position, but knowing that 2027 everything is indicating that we're going to have a challenging year, both in Brazil and abroad.

We are well-positioned to face these challenges. We have the share performing above benchmarks, and we've talked about the remuneration for our shareholders, profitability medium to short-term, long-term of Itaúsa, very good, getting to all the indicators.

One of the shares that is more valued, and we have a dividend yield that is very high, 10%, very relevant for our shareholders. Itaúsa still with the practice of passing on the dividends and retaining the proceeds that we receive from the non-financial to pay the expenses of holding, and we're making these investments using our own cash flow in Aegea, in Alpargatas, which are assets that we consider very good, that on the long term are going to give results for a value generation for our shareholders that is very relevant.

We have a very good mix of allocation of resources and results.

Let's get into the Q&A session and answer the questions of the shareholders. We start with the business analysts, the market analysts, and you can still submit your questions, or you can see through YouTube, LinkedIn comments, or X using #ResultadosItausa.

Our first guest, Thiago Batista, UBS. Thiago, the floor is yours.

Good morning, Alfredo and everyone. My question, well, talking about the dividends, you use the dividends for the initiatives.

Do you think that for 2027 that the tax inefficiency and 28 onwards you're going to have an additional dividends from the non-financial? Two, do you study any type of buyback in Itaúsa?

Good morning, Thiago. Thank you for the question.

It's an interesting point, very good, that for Itaúsa over the next years, as Priscila commented, we should from 2027 have a reduction in the financial tax expenses of Itaúsa regarding the PIS/COFINS tax that we pay of the interest of our capital, which our investee companies pay, especially Itaú Unibanco. Priscila commented R$860 million, which is very significant, that will cease to be charged in 2027.

These are resources that we can use in various ways. One of them is replenish our cash flow.

In 2027, we are doing these investments, increasing the participation in companies of our portfolio, we're using our own cash flow. Next year, we will reuse these resources for a replenishing of cash of the holding to see new investments, new opportunities that appear in the current portfolio.

In a second use, would be payment of proceeds of dividends. We will see if this is possible or not from 2028 onwards, where we're going to have more clarity of our cash flow, the investments done, but it's possible.

Not having any new investments, being above the minimum of cash flow that we have for the holding, we could increase the proceeds paid for our shareholders above what we are practicing, which is the payment of the proceeds from Itaú Unibanco. So 2028 onwards, we will be able to analyze it in a more efficacious way due to our cash flow.

About repurchasing of shares? In regards to the repurchasing of shares, well, we are not studying it.

The policy is to do this capital allocation in the investments that we have, studying the increase of participation of the other companies and of the other portfolio. The allocation in this moment is replenishing of cash flow of the holding due to the new investments.

We are not analyzing any repurchasing of shares per se of Itaúsa in the market. We did a repurchasing of this year, but for the long-term program because of the employees of Itaúsa, repurchasing of 5 million, very small, to face the long-term investments of our directors.

Next guest, Eduardo Nishio. Eduardo.

Good morning.

Good morning, Alfredo. Good morning, Priscila.

Thank you for the opportunity, and congratulations on the results. I have a question in regards to the potential unlocking of values.

The first one is the IPO of Aegea, which was scheduled for the first semester of this year. Obviously, the market is a bit difficult.

We have the elections for the second semester, I wanted to know what is the best estimation for this potential IPO? The second question is related to this difficult moment that we're going through, this challenging moment.

2027 should be a year of fiscal adjustments. In these moments, we have the opportunity: you have a strong cash generation, dividends of the investment, increasing that one-off of Itautec reinforces the capital.

Do you see, besides Aegea, that you have a payment in the second semester, do you see any segments that you think that is interesting in other sectors? Infrastructure, something that in Brazil we have competitiveness in regards to the world, and mainly that the sector is kind of squeezed.

Do you see any opportunities?

In regards to the IPO of Aegea, it continues on the table for this moment. Company is preparing for this moment internally from the administrative, controls, governance.

There are some aspects that need to be improved. Having the opportunity, of course, the company needs capital.

The current shareholders, Itaúsa and GIC, did increases of capital in the company, but it's still with a leverage degree with a characteristic of the sector. It's a bit higher than what we would expect.

The IPO is an objective when the moment of the market is possible. As you said, this moment is difficult, the market is closed, the economy is very slow, the international scenario is difficult.

We continue to have a reality that the company Aegea will face and will do whenever possible. On the standpoint of new alternatives, as I commented, we are giving a priority to increase the participation of the companies of our portfolio.

We did Alpargatas, Aegea in the last 6 months. We have other alternatives that we are studying of increase of participation in the companies of the portfolio.

The priority is to increase the participation in the companies that we have investments. Our M&A team is still active.

We are looking for alternatives, but with this level of interest rates and the risks of the economy, internal, international, the geopolitical risks, all of that interfering with our economy, it's difficult to find opportunities that generate a return for the shareholders. The priority is to increase the participation in the investments that we still have, where we know the potential of the companies and we know how they will perform, what are the risks, the qualities, the investments where we have more surety to increase the participation in the portfolio.

Now Rafael Nobre, Safra.

Good morning, Priscila. Good morning, Alfredo.

Congratulations on the results. Thank you for the opportunity.

Mine is a compliment to Nishio's question. 2017, we are seeing a scenario that is a bit more challenging.

Some economists point to a higher risk of recession. When we look at the financial sector, we see a worsening and we can see a credit cycle that is more challenging.

The question is in the sense of the diversification in this scenario: would you consider increasing a bit more the participation in the non-financial sector for the portfolio, trying to find a diversification outside of the financial sector?

It's an important question that you bring, which is the macroeconomic scenario for next year. Certainly, we're seeing 2027 that is very challenging.

We see the economy decelerating, regardless of all the incentives that the government has given for the increase of consumption and social benefits, renegotiation of debt. We're talking about R$200 billion.

We do not see the economy in terms of GDP and consumption growing. Our scenario for next year is decelerating in the economy.

Of course, we can have quarters without growth or even a small recession. Certainly, this will be a challenging scenario, and it will be reflected in the consumption of the families that have a high level of indebtedness.

We are guiding our investee companies and our companies, whenever we have participation, to be on a more cautious budget, for us to do stress scenarios that can give a visibility that is higher should there be a stronger decrease of the economy or an internal, external problem that will cause a problem in the Brazilian economy. It will be challenging from the delinquency.

It's possible that we're going to see a higher growth in general the delinquency. We see results in Itaú Unibanco and the companies itself.

The companies of the industrial are getting some delay. We see several signals that might lead to a decrease in the economy and increase of delinquency.

In regards to Itaú Unibanco, we're very comfortable. The bank has models that are very efficient.

These cycles of deterioration of credit in the financial market has happened for some time. Itaú Unibanco has been able to have a better performance than the newcomers.

Our models and our policy that is more cautious for the risk management gives us a lot of tranquility that the bank will go through this moment with a higher economic difficulty very well. We're very at ease with delinquency, looking at the portfolio of Itaú Unibanco that controls the models.

The idea is to see a solid operation. We don't see anything relevant in terms of delinquency for the bank and in terms of result.

We believe that the bank, because it's very dominant in several segments and one sector is doing well, the other one not so much, but we can keep profitability levels that are very good. This is going to be kept even with the difficulties that we are seeing in the economic scenarios.

We have another guest: Marcelo Mizrahi of Itaú BBA. You can ask your question.

Thank you for the opportunity. Most of the questions were answered, still along the lines of the new investments.

A company that had a situation that was better is Duratex. It's more leveraged, it went through an investment cycle.

When we think about new companies and new investments, we have to think about the portfolio. We don't really talk about Duratex, it doesn't seem to have an additional need for capitalization.

What do you think?

Certainly, thank you for the question. Dexco is doing an investment cycle that is strong between '22 and '24.

This cycle of '25, sorry, the cycle of investments, we increased the capacity. The investment is closed, and I believe that Dexco, from this year onward, is in a process of deleveraging.

The investments were done with the capital of third parties with indebtedness, but unfortunately this led to the investments not giving the returns that were expected in terms of results and performance. We are working strongly with a lot of discipline to improve the results of Dexco.

The level of leverage has been reduced. We've managed to increase, regardless of the difficult construction sector, and we've reduced this indebtedness to 2.7, and we hope to reduce this to 2.5 throughout this year.

Still a threshold that we continue high, but very close to what we would like to reach. I believe that Dexco is in this scenario, the results are better for the cash generation, the gains of share, and we are working with a lot of discipline due to the operational results of the company, and we don't see a need of increasing the capital in the company's capital.

The cash generation is sufficient to do the investments that are necessary, specifically enforced, and facing the debt and the payment of interest. We see a positive growth cycle for the next years.

The company is doing the selling of assets, and it should accelerate the process, the industrial, finalizing the sales of a ceramics in Rio Grande do Sul. We are administrating this with a lot of discipline, the operational side of Dexco, and as I told you, we got into a cycle that is more positive, more virtuous for the results.

We close the participation of the analysts, but we have a lot of questions. I wanted to start with Caio Carvalhal about Motiva.

Do we have the interest of the participation of Motiva with the leaving of Bradesco

that just bought the shares of Well, Bradesco bought the shares of Motiva due to credits and guarantees of credits that it had. We are studying along with other shareholders to do a part of the control with an increase of participation, but nothing well-defined because of the selling by Bradesco, and what is the degree of interest, results, performance.

We're still in a preliminary study. If the conditions are favorable, I believe that the shareholders are going to buy a part of these shares that potentially can be offered by Bradesco.

Bruno is asking questions about new investments. They're commenting if we are reducing the exposure to Itaú to increase the weight and if there is a target for the special participation of Itaú within this portfolio.

Do you have anything else to add? It's good to remember

Itaú is the main investment of Itaúsa. We have a participation of 38% in the capital of Itaú Unibanco, very relevant for the total capital, and the bank is very big.

The biggest Brazilian company, private, it has a result that is very strong, very solid, high profitability. Our participation in the bank is very relevant in our results due to the patrimony equivalence.

It's very difficult to do a really big diversification. Our objective is to keep their participation with the results of Itaú Unibanco 85%, 90% and growing the investments in the area that is non-financial.

It's very difficult. The bank is very big and our participation is very big.

We will continue to create a portfolio. We look at the companies in the non-financial sector as a portfolio.

It's a portfolio that has an important value. We're talking about R$18 billion in real numbers.

That per se would place that portfolio as one of the biggest companies that are negotiated in the stock exchange. When we compare to our participation in Itaú Unibanco, it's small.

We're confident that we can generate value in new investments, and this portfolio, we see potential, and we will continue to do investments in such a way that this portfolio of non-financial companies are ever more relevant within Itaúsa, within the limitations that I just mentioned when the bank is very very relevant. Fortunately, this is an asset that is key for us and maybe this is the company with the highest performance on the long term in terms of profitability.

We are very satisfied with this concentration in Itaú Unibanco, but we will continue to have a non-financial portfolio that balances the risks of concentration.

Alfredo, another question from Marcelo from Alfredo. He wanted to know from Aegea the return on investment agreement, what are the triggers?

IPO would be the only one? Is there any liquidity event predicted?

I can comment that if this is a mechanism of protection that is negotiated with the other shareholders to guarantee the return, a protection of the return of our investment, considering this capitalization plus the previous capitalization that we've done in the company. We have the trigger in two big events: if we have an IPO in the company, we're going to measure the return of Itaúsa in this investment.

If we have IPCA plus 5%, but then we will do a balance of participation involving just the shareholders, and we have the purchasing option with the symbolic price that makes our participation to be adjusted to reach the return of investment, which is IPCA plus 15%. Of course, we have the mechanisms that has a few limitations: there is a maximum number of shares that we can repurchase against the controlling shareholder.

The other mechanism is, if we don't have the IPO, then we can execute the totality of such options of purchase within the maximum number of shares, but we can execute it and then we can increase the participation of Aegea at the symbolic price in such a way that we will highlight the return of investment. This is the way that it works, and the agreement is available should you need to check the results.

I'm going to get the proceeds, which are always coming up. There's a lot of shareholders wanting to talk about this policy of the proceeds, understanding taxation changes and how can this change the practice.

Matheus, Paulo Lancelotti, John Sarno, and others, they are submitting questions on what changes in the interest of our capital, and then the changes here, can we opt for other ways of generating value for the shareholders with the generation?

We have the practice for many years to passing on to the shareholders all the proceeds, all the dividends that are received by Itaú Unibanco. That we shouldn't change, that practice should be followed.

We don't see a scenario that we are seeing a change in the increase of capital as we've seen last year, R$1 billion that we use to do debt, reduce that. We are in a moment that the practice continues.

We continue to retain the proceeds of the non-financial companies in such a way that we can face the taxation expenses, the amortization, and interests that we have due to our debt. We will continue to retain these proceeds, as I told you.

From next year onwards, we will show that we have a reduction of R$860 million in financial expenses due to due to the end of the PIS/COFINS tax, and this will generate a freer cash flow for Itaúsa. These proceeds, we will use them to replenish the cash flow that we are using to do these new investments in Aegea and Alpargatas, and maybe another investee company.

We will continue with the practice of redistributing the proceeds of Itaú Unibanco without any change. From 2028, 2029, depending on the context, we can do new investments or we can increase the distribution of payouts, proceeds, but this is not a scenario that we're going to consider from 2020 only in 2028 onwards.

Payout, very few realize there is a doubt. We've done that throughout the years, a lot of payments in shares with an attributed cost in such a way that it can be used to increase the share the cost to our shareholders.

With the tax reform, there is a doubt if that payout will if it taxed or not by the tax authority. The entities such as Abrasca has done consultations to understand if these paid payouts are subject to taxation in the 10% aliquot, which was done this year regarding the proceeds that the companies pay.

At this moment, we are more cautious. We are doing a clarification, waiting for the clarification if there's going to be taxation or not, and we are not anticipating any payment, any payout for the shareholders while that is not clear, we don't incur in a situation that generates more expenses.

Because bonification, payout is not a cash flow, is more of an accounting movement that generates patrimony. Payout while it's not clarified, we're not going to do anything.

Repurchasing the shares, we've discussed, and about the changes in the dividends, nothing that affects us, because when we receive dividends from our investee, we don't see the taxation, and we've had the practice via JCP, interest over capital, due to the fiscal optimization, we use the same mechanism. I think it's something that we have to evaluate,

of course, if there is a receivable of dividends of the bank. The big base of the shareholders, it's not in the context of the dividends that are received of R$50,000 per month.

The base is still exempt.

Here there is a question that demands clarification from André Bello on discounts. They're asking: what is your perception in regards to the 19.5%, and they're asking if that reduction that we've seen was more due to the valuation of Itaú than the perception of the market due to the tax reform?

I think it's the opposite, because in the end, Itaúsa this year has valued more than the bank, so that's why we have closed discount. If we had a valuation of Itaú, then the discount would have increased.

Itaúsa is valuing more because of that reading of the market that we have an interesting upside due to the end of the fiscal inefficiency. 7 percentage points that we've seen in discount, very expressive, which has to do with the end of the fiscal inefficiency and that potential of the creation of value of the shares for shareholders.

The discount is to the average? It's a bit below average, but in fact, last year it increased the discount

and we are reducing. While the average discount is 20%, discount above what is reasonable, it's more effective taking into account several aspects of expenses of taxes.

It would be close to 15% and we are going to the average, which is a good news.

Here, Alfredo, there is questions of Dexco, which you commented a lot. Geraldo Campolino asking that Dexco has strong brands, but the company was not evolving, and what is our opinion on the subject?

In fact, the company had performance that was, as I commented, an anticipation during the years of pandemic, the construction, so that increased the usage of Dexco and that led the company that did a life cycle of investments that was strong until 2025. Those investments didn't have the return that we expected when they were approved, that generated lower profitability that has more difficulty in payment.

As I told you, we're reducing the cash, we don't have any new investments. We can do the investments, normal ones, for the replenishment of forests.

We got into a virtuous cycle, to speak, for the company for the next months.

A lot of questions about Aegea: Carlos Rodrigues, Raimundo Freitas, and others. If the payment in Aegea can compromise the dividends of Itaúsa?

What are the impacts? What is the measures?

When do we understand that Aegea should get at a balance point in terms of the return of the investment? The process of IPO of Aegea, which is our vision of leverage in regards to Aegea as well.

I'm going to talk about the accounting aspects, impacts in Itaúsa on the representation due to all the accounting adjustments. We reported that to the market, they were impacts R$600 million that we accounted in the balance sheet, getting to the net assets.

It didn't have a reflection in the company, it was a reflection that was accounting to reflect the reduction of the net assets of the company. It's R$700 million, and we did a discount disclosure to the market when we had access to this information.

The question on the impairment test to present due to the representation of the balance sheet, this asset in our balance, what is from acquisition cost, when we do the comparison of the books and the fair value of the company, the fair value is infinitely higher than the accounting value, it doesn't have any index of impairment of this investment. Getting here a question, when do we want to get to the equilibrium point with this investment?

This is a level of return that is very expressive, it is at a moment of balance that is very high with the cost of capital of the company. If we disinvest the same value of the capitalization that we've done, we would have a return that would be very expressive, and it would be very relevant with this investment, it's much higher than our cost of capital.

It's important that we reinforce that the accounting readjustments that were done due to the changes of criteria because of the auditors did not affect the operation of the companies. From the operational standpoint, the company is solid.

We have a higher growth that it has due to the concessions that it has purchased over the last years, gives us a revenue generation that is enormous. Of course, that is accompanied by the investment to connect the houses of utilities, but the growth of revenue that will be seen in the company is enormous.

We see a cash generation that is relevant, that is more than enough, in our understanding, to face the necessary investments and the service to the debt that the company has of these concessions that were acquired. From the operational standpoint, the company is very solid.

It's an investment that we are increasing the participation, and we see a potential for creation of value that is very relevant.

The question is: can this compromise the dividends by Itaúsa?

No. We're using our own cash flow, we have a solid cash flow, and we are using our own resources, and we even announced the interest over capital that are declared, and they are going to be received by Itaú Unibanco, they're going to be paid on August

28th. It's

the normal practice of paying the proceeds through the shareholders of Itaúsa.

Alfredo, Marcelo from Bradesco BBI, and he submitted another question saying the following: the pipeline of investments in Itaúsa should be less in 2027 comparing to 2026 once that the companies are more positive? In that sense, can we expect that Itaúsa will allocate less cash flows in investments and will pay more dividends?

Depends. We are increasing participation, as I commented.

We are studying new investments in the companies that take part in our portfolio. This is occurring, if this occurs, we're going to use the cash flow of the company that still remains.

The gain of fiscal inefficiency to replenish this. In 2027, I don't see that happening.

We're going to see the dividends, the proceeds that Itaúsa pays being the proceeds that we receive from Itaú Unibanco. We don't see any perspective of change in this practice, but we will replenish the cash flow due to the investments done in the current companies of the portfolio.

Another question from YouTube, Fernando Anderson: and we want to get into agro, and is there any prediction for this to happen?

The appetite for investment in agriculture is higher, was higher. We see the sector that is challenged since last year, this year as well.

The price of the commodities are dropping, some companies renegotiating the debt. Agribusiness, even though it's the main one in the GDP, it represents 25% of the GDP, but we were more interested in getting to agribusiness in the past.

Of course, as the analysts have said, difficulties bring opportunities. Our M&A area is active, but our committee of investment has less appetite for agricultural businesses than it was in the past.

NTS, is there any increase of participation in the company? No.

We are an investor that has 8.5%, the rest of the investment is in funds of infrastructure of Brookfield that are several investors sovereign that are in this fund, there is no possibility well, they pay proceeds, unfortunately, there is no possibility of increase of participation from this investment that was a big investment that Itaúsa did. It was very profitable, we recovered much more than what we invested, and they are a payment of proceeds that is very important in our portfolio.

To close, with technology and future: Amauri Vitas asks what is the future of the holding with AI? How do you see using this tool to generate the value for the shareholders?

Juliana Vieira asking: what are the projections of future for 20 years?

I see that technology in AI, which is one of the big themes of this moment, and certainly without a doubt, because it generates abrupt disruption, disrupts the way that the business is done. It's something extremely relevant, and of course, We have to look at that.

From the standpoint of Itaúsa, we've used artificial intelligence in our models for the evaluation of the company's consolidation of reports using AI. We've grown the use, the internal growth and the gains of efficiency within the holding.

The main relevant thing which is related to artificial intelligence will come from our investee companies. All of them are using artificial intelligence in their processes, their controls, big gains of efficiency and gains of quality.

It's impressive what the artificial intelligence that is almost at the inception will bring in terms of benefits for the companies, the society, in terms of improvement of quality of life, and all the aspects that are of the day-to-day will be impacted by artificial intelligence. We've gathered benefits, but the big company that is using artificial intelligence at big scale is Itaú Unibanco.

Today we have models of understanding of our clients for artificial intelligence in our call center, the model of the recommendation of investments to have a use of agents for our clients to interact. More and more, Itaú Unibanco becomes a technology company with a strong use of artificial intelligence, technology in general, to service our clients with big gains potential of gains of efficiency, of costs.

Itaú Unibanco is the big company that should have the biggest benefit of the use of artificial intelligence as a tool for work and gains of efficiency. We are paying attention, I think that all companies I see they're taking part of the board, everybody has their own agenda regarding this theme, and I am certain that this will be a revolution in the companies and in our day-to-day for appointments of medicine, of quality of life.

I understand that this will be a revolution. Then we will go to the second stage.

In 20 years, I don't know how the world will be. It will be a world that will be very different from what we know and what we live nowadays.

I think that technology will be ever more present in the lives of companies and our day-to-day, and I see this in a very positive way, regardless of the fact that as any technology brings risks of fraud, poor usage, but the benefits are they surpass the risks of the new technology. I am very optimistic in regards to this.

It's difficult to predict. If we look 5 years in the past, we didn't talk about this.

Artificial intelligence was internal for the technology companies, and now we have artificial intelligence available in our cellphones. Changes are very quick.

Certainly, we will see technology gaining more space in our lives and our businesses. Considering that we are 50 years of history, Yeah, the big capacities of Itaúsa, Grupo Itaúsa is of adaptation.

We see this at Itaú Unibanco, that we've gone through several crises, changes, technological, and the capacity that we have of adapting to the new technologies and the new realities is enormous. Itaú Unibanco at this moment has shown this as being a reality that is present, using the new technologies, the new tools, in benefiting the clients and benefiting the society, providing products that we will be providing high quality services.

It's part of our DNA to know how to face the use of the new technologies and So this I see with a lot of optimism in our companies, the capacity to use the tools and going through the crisis and new technologies.

Alfredo, we serviced our audience. You have to look at the investors and through email.

We want to know your opinion. The QR code is here on the screen so we can have access to the satisfaction questionnaire.

Remember that in October 6th, we have Panorama Itaúsa, which is an event that we do yearly to strengthen the relationship with our investors and having a unique opportunity to know more about the strategies and the perspectives of Itaúsa and its investee companies. Please pay attention to our communications and don't lose our event.

Thank you for another event. We've covered the main themes of the company, the portfolio.

Thank you for sharing with this event.

Congratulations, Priscila, on your presentation. I would like to thank our IR team, which provides all of our infrastructure so we can run this event live, and we can clarify the doubts.

I think that we covered, in my opinion, all the themes and all the questions of the analysts, the investors, your presentation, the event. I think it was a good event.

I would like to reinforce the invitation for October 16th, the Panorama, where we're going to have the presence of CEO of our investee companies, talking about the strategies, the technologies, which will be a great event. In closing with a positive side, the results of Itaúsa are solid, proceeds solid, solid portfolio, ready to face economic challenges, technological challenges of the future.

Thank you for your participation. See you next time.