Can you provide a summary of Torsa's performance in 2023?

Overall, 2023 was a good year for us. We grew more than 70% compared to 2022, which was a challenging year. We achieved solid financial figures and stability, consolidating our position in most industries with diverse clients. We have demonstrated excellent operational indicators in our operations here in Peru.

Additionally, we expanded our presence in three new markets. We sold nine collision avoidance kits to one of the most important coal mine in Colombia, through our distributor, and ventured into the agroindustry in Peru, securing three major clients. In Peru, we conducted tests to measure temperature, relative humidity, and ethylene. We also initiated a second phase in Chile, collaborating with one of Glencore’s operation to develop an innovative collision prevention solution for small spaces using artificial intelligence cameras. The conceptual engineering has been completed, and we are currently training and refining the AI, aiming to deliver the final product in September 2024.

What potential does this new collision avoidance technology have in Peru?

This technology will open new opportunities in the underground mining market and confined spaces, as well as various plant settings. It will enhance our current collision avoidance system, utilizing artificial intelligence cameras for precision at short distances. The combination of our existing LiDAR-based system with the added camera provides a dual-sensor approach, allowing us to recognize people or objects more accurately and alert the operator more effectively.

Furthermore, this combination allows us to gather more information and offer advanced functionalities. In our market, beyond selling equipment, the crucial aspects are data collection and analysis through data science and analytics. We aim to provide clients with a detailed analysis, identifying issues and suggesting improvements.

How is Torsa’s business model evolving?

We are transitioning from a model based on selling equipment to one focused on providing a complete solution guided by tangible results. We are moving toward a "Solution as a Service" model, offering a comprehensive solution with software and hardware as a monthly rental service. Although we are still in the transition process, we have already established penalties and metrics pointing towards this goal, marking a positive step forward.

This shift involves shared risk. Unlike some providers that operate without penalties, we are committed to delivering an effective solution that incentivizes positive outcomes. In the next months, we will officially announce the contract award with one of our biggest customers, involving 22 units, with additional provisions to expand to more than 100 trucks.

We anticipate that the trend of payment for results rather than just services will grow, and we aim to position ourselves as leaders in this evolving landscape.

Can you elaborate on Torsa’s relationship with OEMs?

We have a very good relationship with Caterpillar and its distributor, Ferreyros, in Peru, as well as with Sitech and Komatsu. This year we will make a significant announcement regarding OEMs. Our solutions are agnostic which means we do not have to restrict ourselves to one product or brand. 

What can we expect from Torsa in the coming months?

We expect significant growth with a clear strategic focus. Our primary focus will be on specific markets, expecting significant expansion within these markets and venturing into new industries. This year, our attention will shift slightly away from Peru as we prioritize expanding into other Latin American countries. We have already started in Argentina, Chile, and Brazil, where we have successfully secured a distributor for collision avoidance and vibration monitoring systems. With Peru currently constituting 40% of our business, we project it to make up 20% starting next year, with the majority directed toward the broader Latin American region. 

In addition, we aim to diversify our sales portfolio to reduce reliance on the mining industry exclusively. Our strategic plan involves entering diverse sectors, including agriculture in Chile and Argentina, the meat industry in Mexico, and hospitals.