1Q20 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 Q1 2020 results.

Highlights:
. In 1Q20 the quantity of vehicles transported was 156.7 thousand, 12.6% lower in comparison to the previous year, reflecting in a 25.7% market share or a loss of 20 bps in comparison to 1Q19 and the quarter´s average distance was 1,123 km, 6.7% higher in annual comparison. The second half of the month of March we could observe a reduction due to COVID-19 outbreak in Brazil.
. In 1Q20 net revenue fell 5.7% in the yearly comparison due to the decrease in the decrease of the quantity of vehicles transported in the automotive logistics division, impacted by the COVID-19 outbreak in Brazil.
. 1Q20 operating income/EBIT was R$ 26.8 million, 9.6% of margin, 410 bps below last year’s because of higher expenses and partly because the sharp decrease in revenues in the second half of the month of March after the COVID-19 outbreak in Brazil.
. 1Q20 net income was R$ 19.3 million, 27.6% lower than 1Q19 driven by higher expenses and by the COVID-19 outbreak in Brazil in the second half of March.
. In 1Q20, free cash flow was R$ 59.2 million, higher vs R$ 40.8 million in 1Q19 mainly because of a tax credit that became eligible in December 2019.
. 1Q20 return on invested capital was 40.4%. If we disregard the one-off 3Q19 tax credit, it would be 32.1%.
. The net debt in 1Q20 was R$ 7.6 million, 0.0x the EBITDA of the last 12 months.