4Q19 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 Q4 2019 results.

• In 4Q19 net revenue has increased 3.0% in the yearly comparison due to the growth of both divisions.
• In 4Q19 the quantity of vehicles transported was 229,300, 12.6% higher in comparison to the previous year, reflecting in a 29.0% market share or a gain of 2.5 p.p in comparison to 4Q18 and the quarter´s average distance was 1,072 km, 1.7% above 4Q18.
• 4Q19 adjusted EBITDA was R$ 67.8 million. For comparison purposes, if we disconsider impact of IFRS 16, adjusted EBITDA was R$ 60.9 million, 16,1% of margin, 110 bps above last year.
• 4Q19 net income was R$ 43.4 million, 24.3% higher than 4Q18.
• In 4Q19, free cash flow was R$ 13.6 million, influenced positively by IFRS 16. Not considering it, free cash flow would be R$ 3.4 million vs R$ 1.5 million in 4Q18.
• 4Q19 return on invested capital was 41.3%. If we disregard 3Q19 tax credit, it would be 32.6%.