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In 2020, in the midst of a pandemic, an event that none of us had faced before, our commitment to the right way of doing business was reaffirmed. We worked collaboratively and with courage. In all portfolio companies, people’s health and safety was prioritized, and business continuity was ensured. With extreme agility, all companies developed and implemented contingency plans to deal with the new challenges. Votorantim also ensured that its entire portfolio had liquidity to face a period of uncertainty, while also maintaining financial flexibility to continue investing in efficiency, modernization, innovation and growth. And business growth. And in facing the health crisis, we and the portfolio companies, in partnership with the Votorantim Institute, reinforced our social commitment through immediate and structuring initiatives to fight the effects of the pandemic in the different regions where we operate, demonstrating that collaboration remains strong in our DNA.

This period represented a true test of the evolution of the governance and management model of Votorantim and its companies, which was established in 2014. The leadership of the companies and their Boards of Directors were agile and diligent in the management of each of our businesses, which were impacted in very different ways. They established Crisis Committees, got closer to the everyday operations and took impactful decisions throughout the year. And the results of this effort can be seen today, with operational and financial performance exceeding pre-pandemic expectations.

All companies demonstrated very strong recovery throughout the year, both at the operational level and in terms of cash generation. These factors helped us maintain our investment grade rating by Standard & Poor’s and Fitch. At the holding company level, we prepaid our last outstanding debt, in line with our liability management strategy.

Despite a scenario of new risks and uncertainties, we demonstrated that courage and entrepreneurship have also remained strong at Votorantim. With the trust of our Boards of Directors and our shareholders, we continued to advance our business and portfolio strategies. One example was a transaction announced by Votorantim Cimentos to combine its operations in North America with McInnis Cement by partnering with the Caisse de dépôt et placement du Québec (CDPQ). Also, the joint venture between Votorantim Energia and CPP Investments announced an investment of R$ 2 billion in the expansion of its wind farms, which will increase its generation capacity to 2.6 GW. We also expanded into new segments with the creation of Altre, our real estate investment platform, which was previously a business area within the holding company.

We are consistently advancing the ESG agenda, which has always been part of our DNA through the adoption of pioneering practices since the foundation of Votorantim. Historical examples include our first Annual Report published in 1923, and the fact that, for ten years, we have based this report on the globally recognized Global Reporting Initiative (GRI) methodology, demonstrating transparency toward our stakeholders. The COVID-19 pandemic prompted changes and reflection across society, and ESG-related issues have also gained momentum. Although we have embraced this agenda throughout our history, we continuously seek to take on new commitments and influence our portfolio companies to adopt best practices to ensure the sustainability of their businesses. In 2020, we advanced on ESG from the perspective of the investment holding company by discussing with the Board of Directors the new environmental, social and governance needs in the current scenario and the incorporation of these decision factors into our investment processes. Among our initiatives during the year, we joined the CDP, the largest environmental database in the world, and the inclusion in this report of our contributions to the United Nations (UN) Sustainable Development Goals (SDGs).

Another of our new initiatives in 2020 was the Citizenship Program, through which Votorantim and its portfolio companies sought to foster the strengthening of a democratic culture and encourage the active participation of citizens in public discussions, in such an important year of municipal elections in Brazil—for which we developed a new version of Guia do Voto (Voting Guide). Our practices reiterate our conviction on the importance of our corporate citizenship role and the development of initiatives that contribute to the advancement of Brazil’s democratic culture.

In parallel, during the year we revised our corporate Values in order to portray our DNA more objectively. As a result, our way of being and doing things is now translated into Integrity, Collaboration and Courage.

As I reflect on 2020, I have a great sense of pride in Votorantim and all of our people. Our results go far beyond the numbers. And our collective capacity to overcome challenges is enormous. We have more than 100 years of history of going above and beyond, with very solid values—something that each of us carries every day. Therefore, we remain confident and hope to celebrate great achievements alongside those who join our efforts – employees, business partners, suppliers, clients and shareholders—and to whom we will always be grateful.