William Tang

William Tang inquired about the competitive market for secured lending in Brazil and how Nu's operating dynamics and customer stickiness differ in this segment compared to its success in unsecured lending.

Answer

CFO Guilherme Marques do Lago detailed Nu's encouraging progress, particularly in FGTS-backed loans where it has already captured an estimated 25% market share of new originations. He attributed this to a successful direct-to-consumer digital model. For public payroll loans, he outlined a roadmap of adding new collateral agreements to cover over 70% of the TAM. He stated Nu's competitive edge comes from a superior UX/UI and a lower cost structure, allowing for better pricing and high price elasticity.

William Tang, on behalf of Morgan Stanley, inquired about the specific demand drivers for polysulphate that differentiate it from commodity fertilizers and asked about its current profitability. He also requested an update on the production ramp-up schedule at ICL Iberia following the recent incident.

Answer

President and CEO Raviv Zoller explained that polysulphate demand is driven by its good solubility, high sulfur content, and its organic certification, which is increasingly valued by customers. He noted that its prices are holding up well despite falling commodity fertilizer prices. Regarding ICL Iberia, Mr. Zoller confirmed the target to reach a 1 million tons run rate by the end of 2023 remains unchanged. However, he acknowledged ongoing geological challenges will persist for another 9-10 months, but stated that existing inventory will allow the company to meet its full-year sales forecast of 4.7 to 4.8 million tons.