2Q20 Earnings Release

TEGMA GESTAO LOGISTICA S.A., one of the largest logistic providers in Brazil and one of the leaders in logistics for brand new vehicles, hereby presents its Q2 2020 results.

. In 2Q20 the quantity of vehicles transported was 56.6 thousand, 72.8% lower in comparison to the previous year, reflecting a 27.2% market share or a 1.2 p.p gain in comparison to 2Q19; the quarter´s average distance was 1,080 km, 2.1% higher in annual comparison.
. In 2Q20 net revenue fell 60.8% in the yearly comparison due to the decrease of the quantity of vehicles transported in the automotive logistics division, impacted by the COVID-19 outbreak in Brazil, despite the significant growth in the integrated logistics.
. 2Q20 operating loss/EBIT was R$ 9.2 million, due to the drop of revenue from automotive logistics division that suffered the impacts of COVID-19 outbreak and despite the record performance of the integrated logistics division.
. 2Q20 net loss was R$ 4.4 million, a result mitigated by cost cuts amid the drop of automotive logistics revenue.
. In 2Q20, free cash flow was R$ 72.3 million positive despite the sharp drop of the Company’s main division revenues, due to cost and expense reductions and to working capital release in the period.
. 2Q20 return on invested capital was 30.4%. If we disregard the one-off 3Q19 tax credit, it would be 21.6%.
. In June 2020 the Company had a surplus cash of R$ 62.5 million.

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