Good afternoon, everybody. It is a pleasure to be with you to share with you our context.

Initially to show you that in the first quarter we had some important changes in the organizational structure of the company. I was chairman, but my history took place in Portobello since the very beginning up to present.

I have always been the company's CEO, and in the last few years I had become the chairman of the board. We thought it would be interesting to go back to that context because of the reality, the moment, and the challenges.

In that context, we were advised by the board. We had Geraldo Luciano, who was a counselor, who has now taken office as the chairman of the board.

One of the first changes that we made was to hire the CFO, Ronei, who has already been our CEO, and I thought he would be the best person to help us in this challenge for the moment. The board remains unchanged, and these basically are the three alterations we carried out in the first quarter.

We're going through a very difficult, harsh, tough market context internationally, as you all know: the war, inflation, high interest rates. I think this is general.

In our case, our domestic market, we're facing moments with record interest rates, and for our business, for civil construction, interest rates are certainly not interesting. The first quarter is seasonal in Portobello, not only in our business, but in the coverings business as a whole.

The first quarter is always more critical in Brazil as well as in the United States. This context is fundamental to assess the company's performance.

We had some achievements, important achievements, this first quarter, and they set forth the challenge for the rest of the year 2026. Our two main fairs, Revestir or Coverings in the USA, these are key moments where we present our launches, the market trends, and this is where we make most of the businesses for the rest of the year.

I can state that we're extremely satisfied with our performance, be it with our launches and our participation in fairs. We were extremely successful, and this gives us confidence.

This gives the company a new breath of air, especially in the commercial part, but also in the industrial part. We're all satisfied with the work we carried out and with the year's start.

Another important moment was the inauguration of our flagship in São Paulo, an icon, in my opinion, when it comes to specialized stores. We're very satisfied with the initial steps that this store has taken.

A key point of our challenge in the first quarter was the one of conversing well in product to be present in fairs, but also the performance of Portobello America. America is one of our challenges.

We're somewhat delayed when it comes to implementing the project there. We have a ramp-up, but we have to increase the pace, and we were able to have an evolution in Portobello America, especially in the distribution channel, a channel that best helps us to put in place our differentiation of products, services, and the growth there was significant.

We had good growth in exports in other countries, excluding the United States, and we're now in a context where 27.5% of all of our profitability is in dollars. This is very positive for the company, and our goal is to increase these figures to go beyond 30% to be on the right path.

This was an important step in our first quarter when it comes to results. I would also like to underscore that we do have some priorities at present that began in the first quarter and that will be executed throughout the year.

Priority number one is an operational enhancement for the company. To enhance the operational results of the company is of the utmost importance, and we have a great deal of room for that.

The market context will continue to be harsh, the interest rates will continue to be high. It's not easy to resolve the wars.

We have a difficult market context. Luckily, Portobello has several opportunities in-house to enhance its operation, and these are our priorities.

These priorities go through the reduction of expenses and, of course, an increase in revenue or mix. As part of our priorities, there is no strategic change.

Our positioning is a winning strategy to such a point that Portobello is one of the full companies working at full steam. What we want is to enhance our margin and improve our results, minor adjustments that we have to do in the operational part.

This is our great priority. The second priority I would like to highlight is to improve our capital structure.

This is a challenge, it's a short-term challenge, and throughout the coming quarters, we're going to make adjustments in our capital structure. As part of that context, we're extremely confident that very quickly—and when I say rapidly, I'm referring to a vision through the next quarter, the second and third quarters—we're going to put everything back on the rails to have our operational part in order.

I would like to thank all of you for your attention, and I will now give the floor to our CFO, Ronei, who will go into the details of our results and our figures.

Thank you all for your attention. Good afternoon to all of you.

It's a pleasure to be back in the Portobello Group. It's always very satisfying to be here.

I was here in 2020, 2022, that very complicated period of the pandemic, and afterwards in a very prosperous period with excellent financial results. I left the company in 2022, where we had the best results, and up to present, they have become a benchmark.

I return at this very important moment, a turning point, a moment where we're going to focus on priorities that do not alter our strategy; they simply allow for an adjustment in the business. In the short term, I want to work with my peers to enhance the operation and, of course, to improve our capital structure.

We're going to speak about that during the presentation. Some of the results still do not reflect, but these are movements that we're making towards those two priorities.

Let's begin to speak about our flow chart simply to give some color to what was mentioned by Cesar. We begin with the board.

We have named Geraldo, who has been an independent counselor in the group, as chairman of the board, taking on the position that Cesar occupied for six years. We have a more active presence of Mauro do Val, who was the CEO of the company, helped us to build the company alongside with Cesar.

He's a counselor and participating closely with me on the transformation fronts. Cesar as the founder, who structured this business during 47 years and returns as the CEO.

I am back in the team as VP for Finance and Investor Relationship, and we have the four CEOs of our four business units who maintain their positions in this new team configuration with the challenge of putting into practice those two priorities for the year. This is the design that has changed recently.

Let's speak about the market before we go into our operational results. The market continues to be under pressure with very dynamic competition.

We have 64% of the industry that is occupied, only 36% of idle capacity, of course, and this pressures the sector in terms of volume, leads to higher price competition and high inventories. As a whole, the industry is operating, but with that vision of idleness.

In the case of Portobello, we're operating at full steam for some time already, and this refers to the graph on base 100 that explains what happened since 2020, what we did until 2022, the blue curve, the gray curve showing the market and Portobello, then the separation of the curves where we focus on one gaining more market volume. We're 110, we grew 10 points in the market, and the market stands at 87, a detachment of almost 13 or 20 points for the last three years.

This leads us to having full capacity. If we speak of the market, the market continues to be under pressure.

We had minor growth in the first quarter, though wet coverings still has a fallen volume by 3%. This is different from the last three years, where in the first quarter we're very aligned with the market.

To speak about the retail and give you an outlook that connects very well with our Portobello Shop, we have a direct channel. The situation is not different here.

We have fluctuations throughout the quarters, not a constant behavior, the construction material market with a performance below other retail segments like drugstores, hypermarkets, markets that grow between 4% to 7%. Our retail business is walking or proceeding somewhat sideways with a negative percentage of 0.5% impacted in January and February with a gradual recovery of demand in March.

In comparison with other sectors of the industry, this points to the need to focus on a balance of our volume and our revenue and profitability equation. To speak about North America, not very different in terms of competitiveness.

There is pressure, competitive pressure. In the last two quarters, there was a significant drop in the imported volume.

This has a statistic effect. The local market is flat in terms of volume, and imports have dropped because of the tariffs.

The fourth quarter, third and fourth quarters, were quite weak, and the local production gained market share, but continues to be the same. The graph at the bottom of the slide is of the utmost importance.

It shows us the housing starts, 1.5 million houses that start up every year, but not with a common evolution. Our strategy in Portobello North America is to gain market share in a rather competitive market and, of course, increase local production.

Now this is the outlook speaking of the industry in Brazil, Portobello Shop, and the North American market. Now how does this translate into financial results?

Demand in this first quarter, we had limp growth. Revenue grew around 1% vis-à-vis the fourth quarter last year, 597 million BRLs.

Now separated by geographic area, there is an important point in reais: we have the foreign exchange effect, because in the first quarter of last year, the exchange rate was 5.80; in this quarter, the exchange rate was 5.20. In dollars, we had excellent share in the export business in Portobello America.

What you see in the graph is a growth of 22% for Portobello America, that's the highlight for this quarter. We had an advance in imports, but this does not translate in the same levels in reais because of the foreign exchange.

We have a drop of 8%, 7.8% in BRLs, 22.7% of growth in Portobello America becomes 10.7% in Brazil. We did advance sideways in the first quarter.

The great highlight was the advance of Portobello America, especially the distribution channel, the specialized stores where we have better profitability. This enables us to choose a better mix for the product and the channel.

This is very important for this business unit and for the execution of our strategy. We had a performance in the Portobello Industry that services the engineering channels walking alongside the market, 0.7% versus the previous quarter, and Pointer, more focused on the northeastern market with somewhat more pressure and price adjustment, allowing somewhat better profitability in the first quarter.

Now in terms of consolidated gross profit, we had a very complicated point in the fourth quarter. Our performance was not good.

Our margin last quarter, our operating margin dropped 31%. We have made strides in terms of recovery.

We're still not at the historical level of 37%, though 33.4% of the fourth quarter had an evolution during the quarter, 32% in February and March reaching close to 35%, of course, a gradual evolution. We had an improvement of 2 percentage points, and the enhancement was because of the mix and the reduction of operational costs.

In Portobello America, we have a more competitive cost. Now to speak about performance per business unit, this is an important slide.

We never showed the performance of units in detail, although this is in our release. We'll once again speak about the performance of our business units and see how the margins behave along the way, separating the price effect, the mix effect, foreign exchange effect.

Here you have a view of the performance of each of them, beginning with coverings. We were able to maintain in the first quarter margins around 38%.

Portobello Shop with a slight drop in revenue, but it recovered. The margin went back to 44% because of our choices.

3.8% drop in revenue refers to that recovery of margin going back to historical levels. We go from 7% to 9%, and the drop of profitability relates to a recovery in margins.

Portobello America, after a very complicated period, we had a strong revenue quarter with 12.2% increase in margin, reflecting the mix, the distribution channel, and operational enhancement at the plant. The next chapter is that of operational expenses.

We have a first sign of our choices focused on expenses. In the fourth quarter, we had a drop in absolute figures, adjusted expenses, with a drop of 218 to 201 million, a drop of 17 million with a reduction of 0.3 percentage points.

The focus here was on sales expenses. We were able to benefit from our scale, working more efficiently in our sales choices, working on Portobello Shop.

The 0.3 comes from sales expenses that increased our sales expenses. We had no significant variation in other line items.

The leaseback operation at the plant of Marechal Deodoro allowed us a gain of 53 million that was recognized in our expenses, and this is what allowed for a positive figure of 43 million, as you can see on the slide. Now to go to EBIT, another important change.

We speak more of EBIT and not EBITDA. We, of course, will continue to speak about EBITDA, but we're speaking of gross margin with expenses based on operational profit, and operational profit will give us that room to cover our financial expenses.

We had an improvement in the fourth quarter. We had 41 million this quarter, 7% of net revenue.

It refers to an improvement in gross margin. We had 4.3% during the same period last year, we did have an improvement in our performance in margin and expenses that once again refer to operational enhancement.

When you translate this into EBITDA, the EBITDA is 94, 95 million. Our level of depreciation and leasing expenses is 50 million per quarter.

41 of operational profit with 53 million of amortization translate into an EBITDA discounting amortization of 95 million. It's an EBITDA with 16% of EBITDA margin.

There's a nonrecurring effect that is important in the comparison of our reported figure, 95 million compared to 75 that we achieved last year, an evolution in the last 12 months because of this nonrecurring effect. We improved the operation, but the EBITDA figures are impacted.

Now to speak about financial expenses, another change in the way that we position ourselves: our operational profit was 40 million, our operational expenses almost 50 million. This leads to a loss.

We don't have anything to cover our financial expenses. This was a problem in the last three years that became aggravated in the last quarter of '25.

We had an evolution of financial expenses because of net debt. We went from 63 to 79.

Now we went from 11% to 13%, which is a significant operational improvement. It will give us a greater base of operational profit to absorb our financial expenses while we create a more structured situation for capital, one of the priorities of this new management.

Now to speak about net income, another quarter with a loss. Operational profit is not sufficient to cover financial expenses.

We have a loss of 40%—the operational increase was not sufficient to cover the increase in financial expenses, although the figure is lower than in previous quarters. When it comes to working capital, and this is an important point in operational enhancement, we're still being pressured in working capital.

Here you see the operational working capital vis-à-vis the total working capital. We have 543 million approximately in working capital, 81 days, although in our statements we speak of 152 million or 21 days.

Why the difference? Because through time, we're using instruments to anticipate receivables that are worth 68 million and some instruments representing 122 million with suppliers.

Now postponing payment to suppliers represents 391 million. Our working capital therefore converses with that 152 million, but in truth, we have 543 million.

Now four or three years ago, we had 400 million. Of course, our business has grown, but it has also grown in terms of days.

One of our priorities is to focus on working capital. It should be 80 days, and in inventories, we worked with 90, 100 days; we're working with 132 days.

This is a focus of our management. What happened in the short term?

We created an agreement with suppliers. We're working with 150 days with suppliers.

We realized we needed to adjust this. We have made adjustments, we lost a bit of working capital.

In the short term, we had a resumption. This impacted some suppliers.

They went from 154 to 128, and we're now working with 21 days. Now this working capital structure, this is a strategic choice.

It consumed part of our cash. 135 million is what we had in the first quarter free cash flow.

Some of this is compromised with our banking debts, 185 million. The cash is somewhat better vis-à-vis the fourth quarter '25, but we paid for suppliers that were consuming part of our operational cash.

We had a leaseback operation, 60 million came into cash. We paid 30 million in CAPEX, net it was 29 million.

In the funding flow, we had 50 million positive. We raised 197.

We carried out an important raising with the National Development Bank, FINAME, for the long term, but we had to pay amortizations in the first quarter of 137. In the cash flow amortization, we had 50 million coming in from funding, 30 million of investments with a nonrecurring gain for the leaseback from the plant at Pointer, and, of course, the operational money coming in more strongly.

Now all of this translates into a working capital cash flow and net debt of 1.1 billion BRLs, an increase of 60 million in net debt. A part was increased in cash, the rest because of our fundraising.

We were able to maintain our net debt EBITDA ratio as 3.93 because our EBITDA is 340 million in the last 12 months. This gives us a leverage of 3.93.

We have amortizations that are significant for '27 and '28. We have 5 billion in cash, 250 billion that are linked to this.

Now in '26, the amortizations are not that significant; they are more significant coming year. We do have to face these amortizations between the second and fourth quarter, 250 million.

This shows you the pressure on our cash that leaves us with this priority of focusing on our cash. We captured a seven-year line from BNDES, the national bank, leading a duration of net debts from 2.1 to 2.8, and we were able to reduce our average cost of CDI plus 1.3 to CDI plus 0.51.

This is the positive factor for this quarter: the lengthening of the debts, although we still have that challenge of amortizations in coming years and a significant debt service. Now to speak about our priorities, an important change in our communication with shareholders, with investors.

Cesar spoke about our priorities. Operational enhancement.

Some of that enhancement appears in the first quarter, but it is still very timid. Secondly, optimization of our capital structure.

To speak of the operational enhancement and what happened, this requires adjustments. When we speak about our historical performance in the last few years, in the last few years, we focused on market share growth.

We had a growth in revenue, but to achieve that revenue and gain market share that appeared in the graph, 23 points vis-à-vis the market, we had to let go a bit of our gross margin. Historically, it was 40%; last year, it ended at 35%, 36%.

We have varied expenses, they also grew by 4%, 5%, and our EBITDA therefore has been at 320 million in '25, for example. The base of our business grew, our working capital grew.

We have an increase of 200 million of operational working capital. This is the model that we're adjusting, and which conditions are important in this new priority for the business.

We're going to grow in volumes aligned with the market. While the market forecast continues the same, the growth will probably come from Portobello America.

In Brazil, we will be aligned with the market. Our revenues should be more earmarked for a better mix.

We're going to change that equation of making more revenue and as we work with price and mix, we will have an improvement in gross margin. If we don't have a growth in expenses, this is an important task in our equation.

This will enable us to have a better EBITDA and focus on working capital. We will take some resources from the working capital to enhance our capital structure.

This is the readjustment of our operational model, our capital structure, how we can generate value in our business, make the most of the assets that we already have, and generate better operational results and financial results. In terms of outlook, our outlook is that the market will not advance significantly this year.

We're in a protected market, a premium market that does have a certain resiliency, but our outlook is that the market will not advance, and we will grow in terms of prices. In terms of margins, we were working with margins of 35% in March; in April, we went back to 37%.

We have changed the way to price our business base in Portobello Industry and Portobello Shop. After three years, we had a 6% price increase.

We're focusing on improving the mix and improving our margin results in plants with greater efficiency at the plants. April already reflects part of these changes, and the expectation is that for the rest of the year, we will work with a margin above 37%, especially for Portobello America that should reach its break-even point.

With a margin above 37% in Brazil and with Portobello America at a break-even situation, our results will improve. We made adjustments in our structure.

We're redesigning some administrative and financial roles, also redesigning the commercial structure, trying to replicate what is the same among our business units. We're adjusting the size of our business, seeking 50 million of initiatives in the reduction of expenses for this year.

This will represent 7% of our expenses base. This should eliminate that inflationary pressure we have projected for this year.

Now we're working on contracts, everything that is variable, salaries, plus the structural initiatives that will lead to a 7% reduction in working capital, as I mentioned. We're going to generate value.

The focus here, of course, is to find resources for capital structure to reduce our indebtedness. We have 550 million, and we can bring our inventory to 90 or 100 days.

Now the second priority mentioned by Cesar, one of the priorities, we've been acting strongly on this. We have been repeating this in our conversations: we're adjusting our capital structure.

We have an organizational structure that doesn't fit into the level of our expenses. The idea is to find a balance, both financial and operational.

We have to do our homework and enhance the operational part. We're going to work on margin, our choices in terms of expenses, working capital, and expenses.

Once all of this improves, we can also work with our partners to find a better structure to reprofile and lengthen our debt. This will put the company back on the right tracks and will enable us to once again be profitable.

This is all from the viewpoint of messages for the first quarter. Now we can now go on to the Q&A.

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Portobello America was chosen as supplier of the year by the Ceramic Tile Distributors Association. Flagship, the first brand flagship with more than 2,000 square meters.

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Very well. Thank you for the question, André.

Let's speak about the strategic part and then about the priorities. Cesar said our strategy has not changed.

It has been the same in the last four years: it's the expansion of integrated retail. We're growing with coverings.

We have Luciano in the reselling and engineering channels and our winning model of integrated retail that continues to be a strategy, and international expansion with Portobello America, our second-largest market. We continue to grow there, and we continue to grow in exports with other countries.

What changes, and I explained this in the presentation, are the adjustments necessary in our value model. We gain share, we left our margin aside, now we're making adjustments to seek operational improvements, generate better results through margin, more stringent choices to improve our EBITDA, and work more focused on working capital.

This is what Cesar mentioned, and I also focused on this: an operational enhancement. Our capital structure is also imbalanced, and we will address this during the year.

You saw in the graph that our volume was aligned with the market performance. What we did was to make choices in terms of an improvement of mix.

As we're increasing price, we see some friction in transferring that price, because after three years, there has been that friction. It's normal in the industry.

There is a curve and everybody is impacted. This is a choice for the short term.

We will make a growth aligned with the market, and we're going to focus on pricing and mix in the short term, of course. If there is any friction, we will go back and increase our revenues.

I'm going to risk myself a bit speaking about Portobello America. I did work on the strategy.

They have two channels for growth: the distribution channel that has been growing, the more profitable channel, or the smaller specialized stores. We also have specific client that is our partner in the USA.

We began creating demand, and we're now migrating to the distribution channel that is more profitable. Of course, we want to grow the distribution channel without losing our vision of others.

As we evolve, as we bring in the right scale and enhance the plant, we can make better choices in terms of mix and channel. Part of the growth of the operation refers to how we put that strategy in practice.

We have been doing this at a certain speed, and we're trying to increase the pace.

Good afternoon, simply to add something, Ronei, there is a context pro-local production. Historically in the USA, we have an importing country.

Now local production has been strengthened because of these imports and the evolution of our plant and our business goes through two pillars: our portfolio and the channel management. This can generate value for the company, but the channel evolution comes hand-in-hand with a portfolio evolution.

Initially, we had a basic portfolio because we were opening up the market. It was the beginning of the operation, the hiring of labor.

As we go on to distribution and more demanding channels, we are able to do what we do very well in Brazil: use our differential design with a specialization on small formats. This is an important driver of value generation here for the opening of new clients and to create margin for our businesses as well.

Several questions thrown into the same question. Let's speak about Pointer Brazil, then speak about Portobello America, and then João will speak about the plant.

When we speak about a margin that is 37%, we have two equations: one for Brazil, one for Portobello America. In coverings, we're going to go back to a level of 40%.

We have been at 46%, 47% in the origin as business. We have lower expenses, they work with expenses of 10% to 12%, the Pointer business with a two-digit margin would be very profitable.

In Portobello America, we're working with a double digit, getting to margins closer to 15%. Portobello America, in the long term, should reach a margin close to 30% once everything has been fully occupied.

That's for the long term. We're speaking of a scenario closer to 15%.

To structure your answer, there is no single lever. All the units have to improve in Brazil as well as in the United States.

In Portobello America, we have to improve our mix to leave that 37% margin and take Portobello America to a level of margin closer to 15%. You spoke about industrial capacity...

A key point in the construction of margin is the channel mix, the products mix, but also industrial occupation. Our occupation used at present is close to 90%.

We began January with greater idleness, but we do have a volume in the United States that will maintain our occupation close to 90%. We're working with innovation and we have significant demand for our clients for new products.

That occupation of 90% capacity will help us to create that margin advance, and then, of course, we have to add a better mix and products.

Thank you all for your attendance. I would like to underscore some points.

We have opened an important channel of communication with investors. RI channel is at your entire disposal.

Should you have any questions about release, we try to bring you more color, more clarity regarding our performance, speaking about points that have not been explored recently, speaking about what we envision for business going forward, our model for value generation. With this new team, with our new CEO, Cesar, we're fully motivated to seek the recovery of our business, to put it back on track once again, and to obtain significant results.

What is more important is go back to having profitability and a positive capital structure. Once again, we're at your entire disposal.

Should you have additional doubts, please speak to our IR team so that we can explain the performance of our business. Thank you very much for your attendance.

We hope to see you at our next call.