2Q23 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 in Brazil, hereby presents its 2Q23 & 1S23 results:

. The volume of vehicles transported in 2Q23 was 157.0 thousand, up 14.0% YoY, with a market share of 25.8%, led by the recovery in sales of new vehicles and the sales of Tegma’s main customers. The average distance in 2Q23 was 958 km, 0.7% lower YoY.
. Net revenue was 20.4% higher in 2Q23 vs 2Q22, mainly and positively impacted by the higher number of vehicles transported, the increase in transportation tariffs and logistics services of the Automotive Division.
. Consolidated gross margin was 18.8% in 2Q23, stable YoY, negatively impacted by the performance of the Automotive Logistics Division and positively influenced by an improved gross margin from Integrated Logistics.
. EBITDA in 2Q23 was R$ 58.0 million, with a margin of 15.8%, 0.3 p.p. lower YoY, as a result of the growth in the Integrated Logistics’ margin and a slight decrease in the Automotive Logistics’.
. Net income in 2Q23 was R$ 39.9 million, 30.3% higher than in 2Q22, with an expansion of 0.8 p.p. in net margin, as a result of the operating performance and an improvement in the quarter’s net financial result.
. Free cash flow in 2Q23 was positive by R$ 33.3 million, mainly as a result of the Company’s good operating performance combined with the reduction in the cash-to-cash cycle, as well as the use of R$ 5.1 million in tax credits.
. The return on invested capital in 2Q23 was 29.2%, 1.8 p.p. higher than the 1Q23 ROIC, mainly due to the recovery of the volume transported by the Automotive Logistics Division and the resilience of the Integrated Logistics results.
. Net cash in June 2023 was R$ 145.8 million vs. R$ 151.7 million in March 2023, a decrease despite positive free cash flow, explained by the payment of 2022 dividends and Interest on capital during this period.

Webcast in english
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Friday, August 4th, 2023 | 2:00 pm (EST)

Click here to view the 2Q23 earnings presentation.