Good morning Thiago, Elias, Caio, and Cassiano. Two questions from our side.

If you can comment on the excess of gold stock which is on your balance, and for how long this will guarantee your production and the pass-through of prices during the next few months in the gold. The second topic, if we can examine this, if you can comment on the position of prices in the assortment in Life, we can understand a little bit how is the production of the lower price entry-level products and the higher price products, and how do you see the possibility of pass-through in prices over the next months?

Thank you, Guanais. This is Thiago speaking.

It's a pleasure to be talking to you again. Thank you for the question.

It's very very important what we're focusing on here in the in the business. It's a competitive advantage of the company, our stock of gold above tho- that of our competitors, which gives us space, a little more space to make our strategy of price positioning and price marking in the accurate timing to not surprise negatively our clients.

In our considerations, we mentioned that we had 8 months of gold in the raw in the raw material, and we need a little bit less than half of that to run our productive process. Over the year, we're going to be making some some meltdown of print of finished products in gold and also to lengthen a little more this necessity for the avoids necessity of purchasing gold from third parties.

In this the beginning of this year, we have the gold raw material in the format of finished of the gold which we have in these two formats and the rate of exit of the sign of the products and the purchase of new products of new raw material, whether it be in the format of purchasing in our stores, we also have a long period of time to position ourselves our in a price to pass this through to the current levels of the price of the commodity of gold. We have 18 months, at least 18 months, a bit above that period of time, to be able to reposition ourselves the the gold with gold prices.

We have quite a bit of time to re- to adjust to that. Since we have this the second question has to do with the prices of Life, this also applies to both categories, to share a bit of a little of the levers what we can work on in at home, and historically these levers.

The first thing is the product engineering with respect to X or Y to offset eventual to improve our profitability. To cite a few examples of what the clients can do, we can design lighter products from zero, we're going to talk about lighter bracelets, lighter products where the design does not compromise the quality of the surface of the products and the touch of the product permits us to look at this perception of value.

It's a very big job. The methodology of production, historically it was preponderance and about the direct conditions, when we saw everything that's possible to in each one of these methods, the due to direct function, we make a product which is 20% to 30% lighter just by the product production methods that we utilize.

In gold, we have invested in modeling more products to use this technology, hiring a team of 2T- 2D and 3D team to get the current portfolio the of jewels that we have and applying this technology, maintaining the continuity at the factory and passing this to the store with a comp- a product with 20% or 30% less metal, avoiding the need to repositioning our prices looking at these commodities. We can also increase our margin about monetarily.

This is the other other alternative that we have in here in the in the house, we see this and we're always looking at these possibilities. Another another lever that we have is the internalization.

Look at the vocation of the factory and what we have purchased from third parties instead of producing in-house, and invest again in the process of prototyping and sampling and playing the the demand, we can make our our products in-house, cuz in-house we're able to have a better control than in than in the portfolio of the of the subsidies. We have these other alternatives.

Also it's worth mentioning that we have categories which are which we do within the jewel jew- jewelry category and the subcategory and other subcategories, but in principle we do the management of a markup of jewelry as a whole is going up and also diminishing the necessity of increasing prices and the positioning of the Life products, vice versa and vice versa as was last year. We have a multi-metal company, and in this scale and we have also silver, and we work with a dynamic a long-term and short-term, looking at these questions in the subcategories within these metals.

We see within Life, for example, products which are more comparable with the competitiveness competitors, which represent a certain percentage of our prices, 10% or 12% of our company, and these we have a comparability with the market and better elasticity in terms of passing through prices. The commercial products and the collections within Life, we have a elasticity which is slower in the repositioning of prices.

In the categories within Life and Vivara being worked on and a cost-plus structure in terms of what is comes with the commodity prices. Beyond that, we have the work being done, a project being done of the optimization and efficiency, in fact, in manufacturing, so that we can have a reading of the demand and the production line which is more constant, and products which are continued in collections with a better planning permit that the factory itself, we are able to have better efficiency, and then we have efficiency in the factory and avoid also having to raise prices in the short term.

I hope I gave you a long answer, but it's a little bit more the ration- the rationale in relation to how we see the pass-through and positioning of prices. As we look at all of the initiatives, internal initiatives, and we balance all of these things in the medium, the short and long term, we at the first in the first quarter we have done a price positioning with these price with these brands in different magnitudes by category, and we're monitoring the elasticity and we see space to continue over the year to continue passing doing as the commodity prices remain at their current levels.

As we look at what was done, it gives us visibility that the management of the markup, when we look at the short terms, we look at levels which are equal to those that were which we are practicing.

Very good, thank you very much. Thank you for the two answers.

Thank you, Guanais.

Good morning. Thank you for taking my question.

Welcome to the official results call, Thiago. Have two from my side.

First, I would like to explore a little bit more your comment you made about I think it was on the video about the opportunity for the reduction of stocks in the stores in the volume of pieces, and also connecting this comment as you mentioned with the expansion of the affiliates and the soft guidance which you've given on the acceleration on the number of stores, even in this more challenging scenario of raw material costs. If we can look at similar levels or even higher levels of profitability, what we can imagine, what we see in the way of opportunities without compromising your sales, since we see this inverse movement in the last year, year and a half, and understand a little bit what is being done to improve so that this can be done without compromising the sales, and talk a little bit about this point.

Also looking at Life, I'm going to go back a little bit with this subject of competition and its position. It would be good to understand a little bit more about how you're thinking about the strategy for that brand.

We see Pandora very strong in this question of their moment in the bracelets and charms, in pieces which have been very strongly involved in that, and we've also seen that Life is a little bit it's commercial lines in these angles in the Moments line, but also looking at this focus in the windows, we see this point. I want to see what's your strategy on these different categories that you mentioned.

If you could give a third, but that's connected with this question of Life, if you can also comment that you didn't cover in your first question in relation to the levers to evaluate the new composition of mixtures of metals in a global way, the leagues which are covered in the composition of these products, if there's any metal which isn't silver or gold, and how do you see eventually a new line in this direction to pilot this product with a mixture which is cheaper and a covering which is more premium?

I'm going to divide this with the reduction of our stocks in the stores, and I'm going to continue to talk about the strategy of the Life brand and the alloys that we'll be utilizing.

Hi, this is Cassiano, and thank you for the question. In relation to our vision of the management of our stocks, we look at a overall view on the evolution.

We look at these categories of products, and it's important to mention that our finished products is two-thirds of our total, and we look at the overall management of the chain of management and looking at the total value of our stocks. We're also working on two fronts.

The first of them has begun with the demand and the increase of the visibility of the projection of the demand, as well as the model of supply of the stores, which is the assortment of each store. The second front, we're talking about the policies both for raw materials as well as finished products in the availability and the employment of capital.

Another front is the consumption of both in raw materials, such as gold, and chains as well as the Life lines. The fourth front is looking at the continuous with the reallocation of pieces as well as the lower performing items.

In the vision of our policies of covering, we have looked at the current numbers. Looking back to 2006, the gold, as Thiago mentioned in the question, we have today 8 months of stock, and we plan to reduce that by half with looking at the need of suppliers and the different components of raw material where we have approximately 11 months of stock.

The reduction will go through the analysis of the materials, searching for the materials with development of new products. This makes the products more lengthy, and we have the potential for a expressive reduction of these stocks.

To answer your question about what you can expect of this work with the total results of stocks, looking both the finished products as well as raw material, we see potential in this first movement to go back to historical levels of coverage, 400 to 450 days of stock in a gradual way and a controlled way, since we have an expressive seasonality during the year, and the comparisons are always with comparable periods. Once again we have success, and we go to the second movement, which is to look at the continuous work in the management of products and the intergroup management of the stock acquired in doors.

Thank you, Cassiano. Going forward, as far as your strategy for Life, what we see is the movement of maintaining Life with the perception of a complete jewelry store.

Beyond the categories of collectibles, we also have commercial collections and a public which is a more wide-ranging public, and the brand is 15 years this year. We're at this moment in the history of Life to make it a special year in terms of launching products.

It's a characteristic, as we always comment, to be very much used for presents, and it's also a brand which has lots of variations in price. Connecting with your last question, was a question of the alloys, it's a duty that we have to study this question always and go back to answer as Guanais said, we're studying this question as these other levers.

Also it comes in as one of the levers that we have, and we have to see what is the positioning that we have to do with having a complete understanding of what this means in relation to the dynamics of this market. We respect and having a global operation and looking at the company in the different movements.

We think there is space to study these alloys, and over the year getting a little more knowledge about our market. Before we get to this question is lots of things to do in-house, as we commented, and with technology in the factory.

In the question of Life specifically, only 58% of what we sell is produced in our factories. To understand exactly what we have the vocation in these other 42% to do in-house in the factory to maintain the freshness in the stores and also buy something from outside which makes sense.

With 42% could be inferior, depending on the investment in our part and in team and processes, to be able to get to a level, and this obviously will offset the increase of the need for repositioning of prices in the brands. There'll always be a consequence as we look at, and we have competitors, as you mentioned, who is introducing this.

Look at the receptivity of this and react to it or anticipate it. At this moment, with the testing that is being done around the world and we're very close to this topic to understand the changes in the dynamics of the silver market and how we maintain the evolution of the Life brand, differentiating more and more from the Vivara brand, gaining its own life, but maintaining its sophistication of being a jewelry store, which differentiates itself from the other local competitors, and it puts it into a category or be in the costume jewelry category, and positioning it differently from them.

Thank you for the question, and also welcome to you, Cassiano. Thank you, Daniel.

A couple questions from my side. The first is about the gross margin, which is important to understand how you will behave with this gross margin for the third quarter was something deliberate on the part of the company, your investment in the fourth quarter with the increase of your turnover of your products which sell more slowly.

I talked about Black Friday. We saw

how much, in fact, you are comfortable with this strategy that this a one-time for the fourth quarter, and how much this strategy for the first quarter, or for the short term, as you mentioned, will go back to the dynamic of preservation of gross margin. If I understood correctly, your first question about the markups and year-over-year and this dynamic of gross margin, which appear very concerned about the price of the commodities.

The second point is probably what you mentioned about the elasticity. This is something which for us here on our side is almost impossible to calculate, how much if you pass through prices will it affect your volumes.

Specifically in this question of Life, talking about Life now, due to the silver prices, whatever you can share with us about how is the dynamic at the beginning of the year of elasticity, is being relevant? It happens, but nothing very relevant due to the markup and the not very high markups that we see at same-store sales for Life in these two questions.

Thank you.

Thank you. It's a pleasure to interact with you.

I'm going to also invite Elias to help me with this answer, specifically in relation to the quarter that's beginning. In the management of gross margins, you have the component of the markup, and within the markup you also have the way I've started to look at it inside the company, you have initial markup, which you hit right, and then the final markup, which is a consequence of the discounts that you have to give and the depth of these discounts and the wideness of these discounts.

If you have to discount 70% on your products and average discount of 30%, and you have 40% for your final markup. Looking at the data that we analyze here, I'm going to pass this to Elias.

We saw an entry markup was at the levels that would maintain the falloff of gross margin in the fourth quarter due to the discounts which were offered. The tranquility that we have is a entry-level markup, and then the discounts which were deliberate for the company to be able to follow this strategy.

Looking at linking this up in the first quarter in the same analysis of markup, already considering the final markup and not just initial markup, in the first quarter we see stability in relation to the same quarter in last year. Even though the gross margin is not just markup, you have other components in gross margin which influence such as CMV, which it affect the final markup.

We have the component of optimization of the factory, costs of importation, which do not necessarily are in the management that we do of the markup, which we are not able to look at product by product. If we had to include these other effects, we would not have the precision that we have in the management of the markup as we look at this at the closing of the month and several other effects.

These other effects, which are principally the effect of the optimization and efficiency of the factory, in this quarter the data which was analyzed in the quarters of 2025 of increased production, we've had a factory which is more efficient in the first quarter due to the optimization of stocks and the planning of the factory. This is as far as gross margins, that's my comment.

Before I pass it over to Elias, as far as elasticity, this concern that you commented on is very valid. It's obviously something that we monitor, and there are categories in Life in which we see greater elasticity than others.

Looking here, for instance, category by category and price level by price level, understanding what we're able to position without impacting too much our volume. Then the strategy of the jewels, because jewelry we have a greater elasticity, in Life a little bit less elasticity, but we're going to manage the gross margin to the company as a whole.

These are company-owned stores, we have to look at the P&L of the stores, and we have to look at it store by store, but we also look at the company overall, but not taking away the necessity of looking at specific gross margin of each category, but for each one of us there are other levels which we can work with to demystify this. I'm going to pass this now over to Elias to talk a little bit more about gross margin.

Thank you for your question. This is we've been able in a way that is very consistently to be successful in our strategy of the quarter from last year.

We did we looked at We saw this on Black Friday principally, where we selected several quantities a quantity of items that we always put on promotion on sale, thinking that how to put together the strategy of optimization of stocks with the strategy of of looking at this using this commercial period in our favor, and looking differently this year to do a a bigger acceleration in the amount of sales and concentrate sales in these products, we gave a bigger discount on this level of products which we put on sale, and it was very, very successful in this in the measure that we the send sales were concentrated in these items. We see here at the beginning of 2026 a return to the normal level of sales and pricing.

On Black Friday, normally we had a very relevant increase in quantities, which is no more this year in watches and jewelry. We had excellent receptivity in our products for our products, and we saw also very important changes Life growing almost 50% year-on-year in the digital, and also what Thiago brought, which is important, in the category has as a pres- present category, the pleasant market, and online sales has brought to Life.

Now looking at 2026, the first quarter, as we know, is not so representative of sales when we look at the whole year, but we have already did done the the price adjustments in Life, and we also have several other adjustments over the year along during the year, which is part of our strategy as it always has been. Looking at 2025, we understand that, as Thiago said, we had we maintain our markups, which is stable as we have been maintaining, and we have opportunity to be more efficiency in our gross margin since in 2025 we had the factory which was still in the process of ramping up and gaining efficiency and maturing of the professionals that we've hired, and even with the subsidies, it was very strong in the third quarter in the fourth quarter.

The comparability in in a compare with the first quarter where we have this comfort to us. I think that gross margin is part of the value of our day-to-day here.

We're also comfortable with the routes for 2026, also talking about this

Hi, everybody. This is Joseph Giordano.

Thank you for taking my question. Welcome to those who are new to the call.

I wanted to explore with you a little bit more, the focus on the generation of cash and the question of focusing on the tax credits and the assets of the factory. It was clear that there'll be some pressure on margins due to that.

I wanted to look at with you, Thiago, a little bit about, as you mentioned at the beginning of the call, that you run your stock with the raw materials that you have, which you reasonably have 8 months versus 4 months, of 8 months to pass through prices, a cushion which is quite long of stock. I wanted to see how we should look at this in the credits and the discounts on the revenues over time.

We understand that last year was perhaps a wider band than it might have been this year, once this focus is consuming the stock and generate cash. How can we quantify up until where this might fluctuate, and what would be the value of the regime of this line?

Also, compatible with that, is how do you see your stocks might get from their current levels for the consumption of long term? We also see this movement that tends these credits in the long term.

Hi, Joseph. Good to talk with you.

As you mentioned, your question, the answer to your question, and as going pass it over to Elias, we've tried to in this beginning of the year to re- present a little bit of how we analyze the business internally. Our management of the markup, which we spoke a lot bit quite a bit about in these last answers, we don't take into consideration the subsidies and credits.

That's something which is is considered by itself in our management. We're going to over the next quarters and next years show what we have to do with these subsidies and credits, and to see what we need to do with the with these gross margins, and which is something that we manage internally.

This dynamic of sometimes having lots of subsidies in one quarter because the factory had a bigger need for production, which was the sales associated with the final clients, and this winds up bringing a results which is not reflected necessarily in cash. This is oscillates in the first in each quarters.

We're going from the level of the last 2 years in these subsidies went up from above reven- revenue to 8.5% of revenue in 202- 8.4 in 2025, but in other years it was closer to 7, 7.5%. In 2024, we had an increase in production, in 2025 beyond that we had the the entrance of the distribution center in Espírito Santo, which had an additional stocks carrying stocks, which gave us help us to maintain this level even though in the second semester we had a line a level of production which was more in line with the sale and reduction of stocks.

When we look at 2026, these credits and subsidies in the year of 2025, which was 330 million reais, when we look at the DC in Espírito Santo in a full year of operation and the needs current needs for with all of the previous answers for the utilization of gold and a raw material that we have of 8 months of stock, we see that this volume, absolute volume of credits, between 30 and 30 million is more or less what we should deliver for 2026, assuming our premises of growth and internal production. With that, we also have an impact in all the lines and comparisons.

Let's try always to isolate these two effects, both going up, as was the case in the year of 2025, this year helped us. We took out January for this for the effects of and the and the fourth quarter which winds up changing it, but the annual vision is the same.

An important point is the metric of in generation of cash, how much of the EBITDA will turn into cash in a recurring way. I think that historically we have a level in the years of 2024 and previously which grew up quite a bit.

This is another indicator that we're able to accompany of how much EBITDA will turn into cash, and it's a number which I have seen we'll have bigger demand from the board for the cycle the cycle of cash conversion and the working capital compared to net revenue and cash conversion. Though obviously the company, which is ready to turn into net cash again, this this vision of generating cash will not be a necessity for indebtedness, gross indebtedness, but also for the health of our business on the EBITDA to bring higher levels of return.

To generate the same earnings with capital gains as well as the business, which is higher than in the previous scenario. We're going to be bring this indicator to the table and we're going to be starting to communicate this more clearly.

Just to finish up what he's saying, the effect here that as the reduction of inventories and this lower level of use of the factory, which we've been having since the first quarter of last year, this is reflected in our subsidies. We also see starting from the second quarter of last year this revenue from subsidy being lower and also being offset in the second quarter by this distribution center in Espírito Santo, and the third quarter of last year was very strong with these subsidies.

In the first of this year we have much lower production than we had last year. We're producing roughly half of what we produced last year, and this is partially offset by the Espírito Santo distribution center.

We have a lower level than we had last year in nominal terms. Over the year, the production of the factory, should maintain more or less the same level that we had in the second, third, and fourth quarters, and the Espírito Santo center to offset this number, and so we think that this number will be very close.

Naturally, with the reduction of these inventories, producing less than I'm selling, we have the opposite effect than we had in 2024 with the deferred income tax being deferred. In the end of the day, we recognize the sale at the cost of the product, and the unrealized profits, the CONIPA and are in fact passed to our financial statements.

The accounting effect, which means that we have this remission of this deferred tax, but does not have any cash effect on business. The cash effect is brought by inventory efficiency, the effects of the subsidy, and not of the income tax effects.

The effective rate, when we look at the cash rate of the company, it should remain very close to what it was in recent years this year.

Thank you, Joseph. This is Cassiano, also complementing the last part of your question.

Talked about the expectation of time to arrive at our historical levels of days of stock being 400 or 450 days, we see this as a continuous process, with great responsibility due to our sales rhythm, our velocity of sales, but we see a horizon of 20 to of 12 to 24 months for this movement, and then we're going to look at the second movement, the management and efficiency of inventories.

Thank you, everybody. It's good to see you here.

I have here three quick questions. The first is, looking at the 2026, the effect of subsidies due to seasonality over these different quarters, if we understand that in your mind is this due to the increase of commodity prices, the management of markups, what should we imagine in terms of pass-throughs for the gross margins during the year?

The second point is, in relation to expenses, when we saw the plan elaborated to compensate the increase in commodity prices, we saw adjustments in expenses, and naturally we have an increase in marketing expenses. I want to understand your thinking about these expenses in 2026.

Finally, if you allow, we see the PIS/COFINS credits, if there's more opportunities looking at your point, Thiago, in relation to these cash. If you can, the reduction of inventories, how do we imagine this conversion?

Is this a recurring thing that you want to have or to understand your management, your mentality regarding that?

Hi, João. Thank you for your question.

We the following. The gross margin for the year, trying to bring this vision of stable subsidies, has a series of factors which influence it.

We want to remember here that we did during 2025 and 2026 a year in which we gained more efficiency in our factory, starting with we're producing more, and over the year this has helped the efficiency of the factory. We had a Black Friday which is very promotional, as we mentioned, but when we look at breakdown by categories, we see that between jewelry and watches and Life that in this process we see commodity prices going up, we have an opportunity to elevate our gross margin.

In the jewelry line, for instance, beyond the values, we have a huge buffer with which we can increase prices, reposition prices where we understand which is the correct price, and gain margin in this period of time. In Life, this work of generating value is a very hot theme in the company.

We're developing a lot of new products, we're changing several products, the internalization which we began in 2023, and today we have a labor pool with a great deal of maturity, which also brings us the comfort that we're going to be able to bring all the knowledge that we've gained over these years with gold and apply it to the silver market. In watches, the negotiation that we've done to increase our markups continues this year.

During the year, it's not a year in which this will be the biggest highlight in terms of gross margin, but we understand that there are opportunities for us to bring increased gross margins starting with the work that we've done in 2025. Afterwards we're going to look at other lines, we see that we've had more marketing expenses in 2025 than we had in 2024, and I think we reached a more stable level in that line, about 4.5% of our net revenue.

We've had less inaugurations in 2025, we're going to have more in 2026, which will have pressure on our sales force expenses, all to gain in the other lines of repeat expenses. We have the line for logistics and freight, which was very strong in the first quarter of 2025, which will not maintain the same rhythm in the second quarter of 2026.

We did a lot of reallocation considering that the first half and this will continue, but when we look at the whole year, we see this more in line with revenue. The other lines we'll see in the quarter, such as CRM, which has increased the expenses in the fourth quarter, bringing a little bit less expenses during the rest of the year.

Winds up with one question or another, the potential to continue maintaining or gaining profitability during the year. Then looking at our cash generation, this should be the highlight of the year.

We have a big opportunity for us to continue growing and maintaining the high level of profitability. At the end of the year, we had lots of returns, and we do this generating cash.

What we've been working on, and these are the points which we can expect for the year. As far as credits and taxes and PIS/COFINS, this is part of the business, and this is part of any company in Brazil seeks tax efficiency and how to optimize our operation.

However, there's nothing structural, going forward. These are incremental changes which will

Thank you for your answer. What do you think is possible when I think about cash conversion of the inventory and the cash cycle?

What is the conversion of cash that you see?

This year, naturally, we're projecting to purchase less raw material, especially gold. With the optimization of our inventories, we expect it'll be a year with cash generation higher than we saw in a more stable period.

We see a year in which the percentage will be higher during the year, and looking forward this should also return to levels which were lower and more similar to what we've seen in the past. We understand that there's lots of space to hit a percentage number, but we understand that it's going to improve a great deal the level that we see today.

Good morning, everybody. Thanks for taking our questions.

The first question, Thiago, you mentioned about the release and in the release you mentioned that in the third quarter you will come back to a dynamic of pass-through of prices. I wanted to understand much more from the standpoint of the consumer, how do you observe this in practice, the elasticity during 2026, if you said consistent growth, and how do you understand this will bring any impact in the first readings of the beginning of the year?

I'm not looking for guidance, but much more to understand your perception of the consumers. Also, if you can look a little more at this window of 18 months of the pass-through of prices.

How can we think about this eventually? We look at the raw material costs.

If there's any opportunity, is this something that we should see, to keep in mind, or due to the high level of inventory that you have, especially in raw material, if we have very little chance of seeing movements in that direction, but thinking much more about the context of raw materials should continue with this during the rest of the year. Thank you.

Thank you for your question. I'm going to start here, and then I'm going to share it with my colleagues here.

I think that from the standpoint of the consumer, when we talk about jewelry and gold and in the Vivara brand, and we see elasticity that the price increase obviously is very positive, and what we're seeking in terms of quantity, there are categories in which we have stable quantities. We see this within gold, the resilience, a very high level of resilience in this first quarter.

Obviously, in moments such as this, in the recent past these were not things that we lived through, we're looking at when in this category we're able to go to this excellent level of elasticity that we have seen. Looking at this period, more than 10% of our stores, we visited more than 10% of our stores, and we only see this has been decades of work with the team of the founders of the company, closing these points and the principal shopping centers all over Brazil, corner stores in the principal corridors.

This is something else that has to be taken into consideration obviously when you're positioning your price and your brand, and there's no national competitor in our price points with the capillarity, anywhere near the capillarity that we have. We understand that the locations, when we look at the top 10 stores, we have stores in the north of the country, large stores in the northeast, which are not necessarily in the principal centers of the Rio, São Paulo, BH axis.

It's a company that works with all of Brazil in a relevant way. In our conversations with shopping centers and the operators of shopping centers, we see clearly our relevance within the mix in the categories of the shopping, and working always to give us excellent condition, excellent locations, because they know that this for the public of the shopping is good.

It's good for the shopping center. On this side of the pass-through of prices, we've sailed in an ocean, a very good ocean, when we're talking about the gold market.

When we talk about silver, it's an ocean in which is also comparable. Not to be repetitive, but it's something that we have seen in some categories and subcategories within a high level of elasticity, and we also have a work of product engineering which in our reality has to be done where we can position our collections and our commercial areas in a way which we're able to offset some of this effect in the products as well.

Bob Ford from Bank of America, please go ahead. Thank you.

Good morning. Thanking for taking our questions.

As you have migrating to a bigger investment in marketing, how do you measure your return on the investment, and if necessary to migrate to more, how can we understand these investments and how long this process would take? Finally, how many stores of these recent store openings compared to previous store openings?

Thank you, Bob. We gone we've come back to making the investments in marketing aimed at the branding.

These investments do not have the same metrics of return on investment in the short term and the conversion that we see in digital marketing, but they are very important to build the brand in the long term, maintain the strength that Vivara has built and the awareness in the mind of all of our clients. All these branding investments, whether they be in the channels, in physical channel, thinking about events, etc., or whether they be in in the digital world, they all have have long-term returns.

When we see what happens on the growth of the digital digital in the quarter of 82%, almost 82%, this investment has come very much anchored in the investments in media and performance, which we saw in the fourth quarter, and also in the new app and the personal shopper team, and the higher availability of stores. We also maintain a return in our investment digital investments above that which we've seen in And looking at the branding, we see them as separate measurement, the behavior, and I'll pass this over to talk about this a little bit.

We see that these the previous stores of Life, the previous store openings of Life, since they've gone into shop smaller shopping centers and shopping centers in the interior, they start off with the smar- the lower level of investments and we we but

they have a lower expectation of return on investment, but but we understand that they will shake out arrive in opportunity that we always projected above 35%. That what we've seen in practice is that these stores have been reached their maturity more quickly than we thought, even faster than the third even ahead of the third year, which brings us the confidence, the comfort that even when we put a Life inside of a shopping center which already had a Vivara, we see the combined sales of these two stores improving.

The grouping of 2023 and 2024, but also the previous harvests of previous store openings have reached more and more quickly reached the maturity that we projected and which is necessary to return to reach hit these return on investments of 35% to 40%. This gives us comfort that we can we have space for a lot more Life stores in Brazil, and that's why we've made this this guidance higher than what we had in 95 in 2025 of 55 to 65 stores, and that a lot of these store openings will happen in shoppings where we already have Vivara stores and where we have identified potential sales in shoppings how how much we can sell Life even with these Vivara stores in the same shopping, and we open a shopping a store a Life store in these same shoppings, we have a better performance than we had previously by itself.

We're very satisfied with the behavior of these 2023-2024 stores, and we were ready to open up more stores going forward.

Thank you for your question. This question of new alloys, we're going to use the the sequence of understanding all about the product engineering and the types of categories, and the alloys are within these studies on an ongoing basis.

We have the advantage, a very big advantage, that we have a factory, we're able to test and react very quickly. Not It's It doesn't seem to be rocket science to evolve to alloys which are which have a positioning and a perception which may be gold coated or rose coatings, and you have a res- an excellent receptivity by the clients.

This is something that the they were prepared to react as necessary. This will not require a bigger investment in production?

No, the process the the production process where you create this alloy, all you have to do is test it, test the quality, the reception, and I think that in the in the production process understand that we have a line dedicated to an alloy, to a certain alloy, to not have any any loss of productivity, but that does not require any significant investments above those which I mean. If it was a stainless steel covered in platinum, is the same for you?

Steel, let's see.

Yes.

Okay. Today, Life already does steel with platinum.

The category specifically has already adopted this practice since it's founding. Thank you all very much.

Midia from Morgan Stanley. Good morning, everyone.

Thank you for taking our questions, and thank you, Thiago and Cassiano. Two questions from my side.

What I seen in the video, you talk about the level of internalization is about 86% and Life 80 58%. I understand that one of the levers to mitigate this increase in the prices of silver, I want to understand if there's any guidance for you to increase even more this penetration specifically of Life and what we should think about the velocity of Life to reach the same levels of internalized production that Vivara currently has.

The second question, Elias, is also a follow-up from the previous question. You commented that the ROIC of the new stores is reaching the desired level more quickly than imagined, and I want to understand the data that you shared of the return per square meter showing that the new stores are growing, but they're growing more slowly.

I wanted to reconcile if you are, in truth, if you have the ROIC truly lower or is there another explanation for us to be able to make these numbers tie up?

Thank you, Alexandre. This is Thiago speaking.

Afterwards I'll share this with Cassiano and Elias to add. For the question of internalization, we see space to continue evolving in the Life even as much as Vivara itself, which is 86%.

You have to naturally invest in team, in the product design team, and also investing in a model of supply, the development of the collection. The lead time when you buy a finished product is lower than the lead time when you develop a product in-house.

Naturally, we have beyond these initiatives, we have the initiatives of transference of the SKUs, which today in a new function so we're reinforcing the team for the product development, design from 3D to 2D for factory samples. This is the initial bottleneck, and we also have the bottleneck of understanding the vocation of the factory for certain types of pieces to maintain the parts and the quality necessary to be able to have the receptivity of the clients.

The factory also has to do its homework to know the methodologies and ways of working to bring these parts, these pieces that we have been purchasing outside. We have to sell what the clients want, and not necessarily what the factory wants to produce, whether it be by vocation or by volume.

This is our goal, our guiding saying, and to be able to produce these products, to not take advantage of the factories around the world and bring us velocity and innovation and to test these stores and the strength of being verticalized and these products in-house, it would be a waste. Having said that, these percentages that Life has is a good way to go forward, and even these jewelry on the long term we're able to increase.

Thank you, Alexandre. This is Cassiano, and adding to Thiago's answer, we have had in February a visit to our factory in Manaus, which is a motive of great pride and it's very impressive the capacity to produce different types of products with the same level of quality and flexibility.

This decision to produce internally or outside of Brazil is seen by the product, looking at the possibilities, in fact, as Thiago mentioned, space to increase the internalization both in Vivara, which is in 86%, as well as in Life, which is 58%. There's another possibility for this, and we're evaluating the different types of products to see what makes sense due to the allocation of the factory and to start to migrate.

As we also have a second opportunity here, which is the integration, even higher integration between the planning of demand and the factory, and together be able to take the best possible advantage of this investment. This is a giant potential for us looking from the store to the client, and looking at this motor to make our business more viable.

Talking about the Life ROIC, we see the stores which we opened in the past in '21, '22, and even earlier, with less data than we have now, but they opened in shopping centers with high sales potential, and the sales of those stores grew the brand was consolidating and became better known, and the sales continued to evolve. We see that the return on investment that we projected previously we actually way past that in the original stores, and it leaves us very comfortable that the brand has tremendous potential.

Looking at the products in the more recently opened stores, as I mentioned, they start off with a potential sales which is lower. This is within the other lines of the area that we're looking at, and also the invested capital that we're putting to that store.

We start off with lower expectations in these shopping centers which have Life. They have a Life together, it's very important for the construction of the mix, and in many cases we have to have an allowance to build our store.

Gradually we see the evolution in our store model so we can have a CapEx which is lower, a CapEx which continues to bring all of the quality that we wanted to be seen, but also influences on the size of the store and is reflected in the need for storage of products at each store. We don't necessarily have to have so many drawers to save so many, we're able to save on the construction costs, which is one of the most expensive parts of building the store, and we're able to take advantage of part of the windows, take advantage of the air conditioning and the electrical installations in ways that are more efficient in the CapEx for store, which helps us to reach the ROIC that we have projected, even with sales per square meter that are lower than imagined.

When we look at the 2025 stores, it's very recent, and the most of the stores opened at the end of the year, but for 2024, those stores are on average getting close to what we projected. It's still in the second year, incomplete years of operation.

They still haven't reached the ROIC that we understood is correct initially, but we're seeing this improve consistently as time goes by. We're very confident that 2024 will continue to evolve, and that store by store, looking at this history, some have already arrived at the desired levels and others are on the way.

The 2025 stores are very, very recent,

looking at 2026, we're going to bring more details of how these stores from '24 and '25 have been behaving and then reaching the return on investment that we projected.

Hi. Thank you for taking my question.

I wanted to explore a little bit more the pipeline of innovation in Life. You mentioned that you see a lot of old stock over the fourth quarter to open up this space for the new collection.

I wanted to understand how should we think about the timing and impact of the sales over 2026, and what will be the counterpart in these stocks, how these new launches will fit into the company's plan of reducing the number of items per store? You can give us more details about that, that'd be very interesting.

Thank you.

Thank you, Felipe. To start, I'm going to start with your answer.

This is Thiago speaking. Life is on a on the way of having more and more commercial collections and diminishing eventual the elegance of the questions.

This is a route which we're following. With gold at more and more expensive, more and more scarce, and the price line we have we have silver and and chains and so forth of the Life brand in these categories.

This year we celebrate 15 years of that brand, and we're very strong on our launches, and we want to maintain the participation of products which are launched less than 12 months ago, which is our innovation period, to bring freshness and and follow the trends in that world. This last part in relation to how we see this in stores, and we see the first movement of this this new relevance of new stores and launches, and even in the category of Moments we see more launches during the As we mentioned, the brand is maintaining itself fresh, current, and a vision of we have to separate the stocks which have to be diminished from those which have to be increased.

When we look at the total stock of the company, we know that the tendency is to be reduced, but there are subcategories in which we have to increase because it's selling, it's reacting well, and so we aren't going to be pressured by this total stock and miss and miss the opportunity for sales. All the stores of Life all the Life stores today, which we can optimize stores by the sales people, by the sales being more efficient, we're going to increase these products which we perceive a a good turnover and a good entry.

That's very good, thank you.

Good morning, Thiago, Elias, Cassiano, and IR team. Thank you for taking my question.

I'm going to be very direct with respect to your time. Two two very questions.

As far as the pass-through of prices which you mentioned in the first quarter, can you give more detail, what was the magnitude of this pass-through and how much you are behind in relation to the commodity prices, especially in silver, which is the major doubt that we have? That'll be great.

Also the second question about the debits of IPI for the tax reform and with the losses of 2021 to 2024, I want to understand what was that in 2025, if this doesn't apply, and so you recognized if these are one-offs or these are something that we need to pay attention to going forward. Thank you.

Thank you, Isabella. The magnitude of the pass-through of the company, the practiced in both categories in the beginning of the year, as Thiago mentioned, each category has its own Vivara has that accretive, which is in Life has separate this performance.

As far as our costs, we look at the gold at the factory we have between 20% or 30 20% or 30% below the spot price, but it's very important, these are finished products, which naturally there's a gap which is even bigger. There's a buffer of finished product which is much bigger than my raw material buffer.

As we mentioned here, eventually to evaluate these pass-throughs and consider this dynamic of expansion of profitability of that category. As far as the IPI, thank you, Isabella.

We, along with many other retailers, the generator of the IPI for the imported product this was judged by the Supreme Court, and the changes had general repercussions. We adjust our operation, and we do the importation of finished products utilizing the trade, and so therefore this was done in 2024, and 2025 we already run in this new format.

Beyond changing how we do our importation, we've recalculated how much we should have to pay here in IPI, and we made this payment for the periods from 2021 to 2024. With that, we close this question in 2025 without any type of effect beyond that which we already reported as a non-recurring expense.

The operation in 2025 was done in this new format. There's nothing in this non-recurring adjustment which you need to think about to put into your models going forward.

Very good, very clear. Thank you.

Thank you all for all your questions. Always very rich, this interaction, and I think that the call had a very high level of participation as we like, and I'd like to close here reinforcing a little bit the enthusiasm and energy which is in the company currently, and the level of leverage and growth that we see in our business, core business, which is very big, and the category management, and as we mentioned, a very high level of generating products, the opportunity for expansion, physical stores.

We did not comment here, we had the opportunity for e-commerce and other opportunities in relation with our clients, and It's a company which has strong bases and a very difficult to be replaced by its international competitors, and we're going to strengthen all of these strengths and maximize our returns for our shareholders. We're very, very excited about the year of 2026, with all that we have to do going forward and all that the company has a solid structure to help us to execute a very, very strong year.

We're going to now close the call, and we're placing the entire IR team at your service for any answers or perspectives that you might have in our results. We desire you all a great weekend, and especially for 2026 for everybody.

A greeting from us. The video conference of results for the fourth quarter of 2025 is now closed.

The IR team is available for any other questions you might have. Thank you for your participation, and have a good day.