Ctt Correios Portgl Sa

Good morning and welcome to CTT first quarter 2025 results conference call. Please note that this conference is being recorded. For the duration of the call, your microphone will be disabled. However, analysts will have the opportunity to ask questions at the end of the presentation. To do so, simply click on the button to raise your hand and we will give you access to the microphone. If you are dialing from a phone line, press nine to raise your hands and six to unmute yourself. I will now turn the call over to Mr. João Bento, CEO.

Thank you. Good morning, everyone. Welcome to our first quarter results conference call. If you bear with me in the first slide, which is slide number four, we believe we had a very decent quarter where recurring EBIT growth was driven by recovery in financial services. Indeed, in terms of revenue, we've seen growth on all three blocks, logistics, bank and financial services, of around 9.5%, while EBIT grew almost 20%, a very significant growth. That was not even higher given the impact of last year's general election. Otherwise, it would have been even more significant. If we move to analyzing each business line, starting in slide number five, I'm sorry, with the express and parcels, we've seen continued growth in volumes, revenue and recurring habits, while with softer than expected volumes, although growing a solid 15%, which we see clearly above market growth. And this volume growth of 15% converted into revenue with a strong improvement, given a combination of price, average rate per object, and value-added services. Indeed, we convert 15% of volume growth into 23% of revenue growth. Habitat margin on the right. sorry, EBIT on the right grew 24.5% from 6.5 to 7 million euros in the quarter. Although the EBIT margin was affected by some operational issues, mainly related with capacity increase, since we keep very focused on providing very high quality, which is vital in this business. I will now invite my colleague, João Sousa, to guide us through the mail-in dollars and retail business areas.

Thank you, João. Good morning, everybody. As you can see on slide six on mail and others, we see revenue flat in mail and other segments compared to the previous year, supported by the price increases and also the continued positive contribution from business solutions and payments. And the same applies to address mail revenues. Of course, on this analysis, we are excluding these extraordinary revenues from the elections that we had in the previous year. So we felt this is a positive trend, continuing to see this baseline revenue stabilization in many others. So excluding these extraordinary elections revenues we saw in address mail revenues, we are practically flat reaching 9.28 million euros. And million other revenues, we are also flat with 170.7 million euros. In EBIT, excluding again the extraordinary effect of the election revenues, we reached 1.3 million in EBIT, representing more than 200% of increasing compared with last year. We also on this area continue to maintain a cost control that which help us to manage the recurring EBIT. On slide seven, coming for financial services and retail. In the first quarter, we continue to observe a very positive trend in public debt placements. Coming from improving by the market conditions like we saw in the last quarter of last year and also in the first quarter of this year. Coming also for the success of the digital channel that we are reaching records every month. And also coming from the growth and diversification of the savers entering over the past year. As a result of this, public debt placements grew by 64% compared with the previous quarter and by more than 400% compared with the same quarter of last year. We maintain in this area a commercial strategy to diversify our services. mainly coming from health care plans and insurance. And as a clear example of this success, as you can see, the health plans, we see an increasing of 26% of the number of clients compared with the previous quarter, falling more than 700% of increasing in the previous year. This translates in more than 123% of the revenue growth reaching 12.5 million euros of revenue and an increase of 126% in EBIT reaching 6.6 million euros. We can say on this area, we have continued to have a positive outlook for the future because public debt going to compare very well against the savings in banks. And also we are just launching in April the insurance for SMEs that we felt that we're going to have a very good success on this product also. Now I pass to Guy, our CFO.