4Q23 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 4Q23 & 2023 results:

. The number of vehicles transported in 4Q23 was 175.3 thousand, 6.3% higher YoY, a 24.3% market share, 0.2 p.p. lower vs 4Q22. The 4Q23 average distance was 1,077 km, 4.8% higher YoY.
. Net revenue was R$ 453.8 thousand, 10.8% higher in 4Q23 YoY, stemming from the growth of the vehicle logistics operation (higher volume and distance) and the Integrated Logistics Division, coming from both chemical and household appliance operations.
. The gross margin in 4Q23 was 20.2%, flat YoY. The stability is explained by a commercial discount in the Automotive Division, which was offset by the expansion of the Integrated Logistics margin resulting from the revenue growth
. EBITDA in 4Q23 was R$ 74.1 million (a 16.3% margin, 1.4 p.p lower vs. 4Q22 Adjusted EBITDA), a consequence of the commercial discount granted by the Automotive Logistics Division and the increase of administrative expenses.
. Net income for 4Q23 was R$ 51.0 million, 10.2% lower YoY with an 11.2% net margin (down 2.6 p.p. YoY). Despite the improvement in equity pickup, the lower operating income and the tax credits registered in 4Q22 were the main reasons for the decrease.
. Free cash flow in 4Q23 was R$ 1.7 million negatives due to the increase in cash-to-cash cycle vs September 2023.
. The return on invested capital in 4Q23 was 27.4%, a reduction QoQ, explained by lower margins in the automotive division in 4Q23 YoY and the performance of the Integrated Logistics division in 2023, falling short in terms of revenue and margins
. Net cash in December 2023 was R$ 130.9 million vs. R$ 163 million in September 2023, a decrease explained by the higher cash-to-cash cycle in December 2023 vs. September 2023.