Tegma´s Q4 2017 results

Tegma Gestao Logistica S.A., one of the largest logistic providers in Brazil and the leader in logistics for brand new vehicles in Brazil, hereby presents its Q4 2017 results.

Highlights:

• The number of vehicles transported in 2017 has improved 11% [ 7% in 4Q17] compared to the previous year due to an improvement of domestic and export sales.
• 2017 and 4Q17 gross revenue growth reflected mainly the improvement in the number of vehicles transported in the period.
• 2017 adjusted EBITDA was R$ 134.8 million [R$ 44.7 million in 4Q17], higher than previous year, driven by better operating results of both divisions.
• Net income in 2017 was R$ 103.8 million [R$ 59.0 million in 4Q17], higher than 2016, positively driven by revenue growth, cost and expense control, and positive non-recurring events that totaled R$ 40.8 million in the year and R$ 31.0 million in the quarter.
• Free cash flow in 2017 was R$ 61.6 million [R$ 11.9 million in 4Q17] higher than 2016 FCF due to better operating results.
• Tegma’s return on invested capital (ROIC) in 2017 was 23.0%, vs an after-tax cost of debt of 6%.
• The management has proposed the payment of additional dividends related to the 2017 financial year in the amount of R$ 38.9 million [R$ 0.59 per share]