Ctt Correios Portgl Sa

Hello and welcome to CTT's first of 2026 results conference call. This event is hosted by Mr. Guy Pacheco, CEO of CTT, Mrs. Joana Freitas, CFO of CTT, and by Mr. João Sousa, CCO of CTT. Please note that this conference is being recorded. For the duration of the call, your microphones will be disabled. We will have a Q&A session at the end of the presentation and analysts will have the opportunity to ask questions. To do so, simply click on the button to raise your hands and we will give you access to the microphone. If you are dialing from a phone line, press star 9 to raise your hands and star 6 to unmute yourself. I'll now turn the call over to Mr. Gui Pacheco, our CEO.

Good morning to you all and welcome to our first half 2026 conference call. I would invite you to start in page 4, where we see our core business, CEP and mail services continuing to perform strongly, with temporary headwinds on Caceda as players anticipate the new regulatory context of the minimis. We had a very healthy organic growth of 6.3%, with strong contribution from our SEP business, also a strong contribution from our mail-in services, that is these guys by the effect of elections, that accounted for 8.6 million last year, so if we account we also had a strong contribution from mail, and bank contributing 7.4% to the growth. Our EVs declined 8.4, despite a good contribution from our SEP business and a very strong contribution of Melon Services, with Cassez giving this anticipation of the regular time context, waiting on the evolution. André Almeida Almeida Almeida So organically growing almost 21% and overall growing 24% in volume, so very strong growth. And with the very good news of diversification, we see on the right side of the slide a strong diversification from cross-border non-EU Tier 1 to other kinds of players, namely Iberian players and EU sources in marketplaces that continue to grow. Marcos Ferreira Marcos Ferreira Marcos Ferreira Marcos Ferreira Revenue growth above volumes with sequential acceleration with organic growth growing 21.2%. Our EBIT also growing 5.4% with a very robust margin that is normalizing, although some mixed and full inflation impacts were felt. and we are actively managing profitability with a number of implemented actions in terms of optimization of line oil handling and last one. On slide seven, we see our early validation On the GEV of DHL synergies, where we continue to see significant synergies of 17.5 million euros, a big portion of that coming from revenues, 40%, and then 50% coming out of operation efficiency and support functions. We know that the GB gives us more than scale, gives us commercial reach, network density and operational specialization, which are key to building a stronger e-commerce platform in Iberia with its enlarged offering and more strength on operations. On slide 8, we see the customs clearance activity that remains under pressure. The business environment remains very volatile, caused by regulatory volatility, changing inflows and airport shifts, but we are taking concrete actions to protect profitability. We are reducing Our workforce and optimizing temporary workforce while actively managing our facilities and warehouse in order to protect the decline in revenues and strongly decline on EBIT that you can see on the shot. We chose to spend a little bit more time explaining the trends around this business As we see this strong impact in the customs business driven by two regulatory chains, one affecting only the Spanish business, that is the introduction of the G4 regulation, And the anticipation of what has been implemented in the 1st of July, that is the end of the de minimis exemption, where all goods below 150 euros will be charged a 3 euro per product fee per category. Noting that in November is to be expecting an additional fee of 2 euros per parcel that will bring still more volatility. So, stricter regulation in Madrid and supply chain reorganization are in anticipation of the new regulation is what is driving the change of volumes as CTT or CACEDA has different market shares in all these airports. And we are seeing volumes moving from Madrid to Eastern Europe and Central Europe, namely Benelux. In Eastern Europe, we have strong market share in Poland, so that is good news, but in the central European part, Casseza is not as strong in the market, and that is driving the decline in share and those volumes. But we see this as temporary, and we see the market evolving to B2B clearance and fulfillment, where we have strong capabilities, And this regulatory reserve is creating opportunities that we are already acting on with strong leads from a number of marketplaces in Iberia within this combination of clearance and fulfillment that bring us comfort that the reorganization of the business will evolve André Almeida de Almeida The Regulation Anticipation or Impact on Cacerda. In EBIT, not the same dynamics as the incremental margin of the customer's business is putting pressure on margins and our EBIT is declining 26.9 but I would highlight this Various marked different dynamics between the two businesses and highlighting that we see on customs these as temporary in nature. And with that I will pass the floor to João Sousa to guide you through the mail and financial services.

Thank you Gui, good morning all. As you can see on slide 11 Second quarter confirms strong acceleration in saving placements driven by higher subscription limits, attractive interest ratings and growing digital adoption. At the same time, health plans continue to scale, reinforcing the diversification of our service revenue base. Also, we see that in our insurance services. On the left side of the slide on public debt placements, we can see that average monthly public debt placement reached 547 million in the second quarter of 2026, up to 60% when compared with the last quarter and up to 40% year on year. Topo's subscription amount to approximately 1.62 billion during the quarter, reflecting a very strong recovery from the customer demand for savings products distributing through our CPP network. And this performance is driven by three factors. So, Iger's savings certification, as you know, subscription limits was I guess the subscription limit last year was increasing attractive interest rates and the customer continued to confidence in this kind of low risk saving products. Also, I would like to highlight that digital channels continue to gain relevance. Digital savings subscription are representing around 12% of all transactions. And in May, it was May becoming the best month ever, surpassing 20 million from this channel. The outlook of public placements looking ahead remains very positive. We continue to see a strong customer demand from saving certificates, supported by the attractiveness of this product through a customer placement. And at the same time, the launch of the new treasury certificates generates additional demands from customers seeing longer investment horizons. It's important to highlight that we are not seeing a meaningful cannibalization between these two products. So we see an increasing and not a cannibalization. So on Pantrader, we see new customers come to our stores or to our digital platforms. And so that's the way we see an outlook very positive until the end of the year for these saving products in our network. On health plans, we continue to perform pretty well. As you can see on the left side of the slide, the number of customers reached 55.8 thousand customers represented the growth of 13% versus last year and 90% versus 2024. This growth validates our ability to develop subscription-based services and create customer relationships behind our traditional postal services. We are doing this on the health plans and also in the insurance services and creating these new services in our retail network. In summary, we are seeing a strong acceleration in savings placements, supported by both our physical and digital channels, and outlook for the next quarter remains favorable, with strong demand for both savings certificates and now this new product that will launch in 6th of July. At the same time, health plans and insurance continue to grow, reinforcing the diversification of CTT services portfolio. On the next slide, slide 11, Sorry, slide 12, where we see the mail and service revenues. Despite the challenging cooperation based created by the May of 25, because we have these legislative elections, mail and service revenues delivered a very solid performance. Because if you exclude the only one-off effect, revenues grow, Saving Placement Accelerates Significantly and Business Solutions Appendix Continues to Expand and in that way profitability improves materially. As you can see, revenues reach 127.9 million in the second quarter of 26 compared with 130.4 million in the previous year. However, this compression is significant if it impacts The contribution from the Portuguese legislative is one-off. If we exclude this, we can see this growth of 5% quarter-on-quarter. The growth was driven by savings placement, business solutions, and the resilience of the address mail revenues. I would like to highlight these address mail revenues that The address mail revenues declined 7.5 from 88.9 million compared with 82.2 million items or ever the revenue impact was sustainability lower. This means that excluding the election in fact address mail revenues would have declined only 0.9 demonstrating a significant revenue resilience. This continues to demonstrate our ability to manage the structural decline in physical mail While protecting both revenue and profitability. Also, like we saw before, sales placement also continued to increase the revenues and productivity, increased 56.1%, reaching 1.3 million in the second quarter of 26, and the total subscription increased 40% approximately 1.62 million. Business Solutions, the revenue increased 7.8 reaching 19.6 million during the quarter. This becomes a huge asset to our diversification in this business unit. We see also a very positive outlook until the end of the year and also a very good way to André Almeida de Almeida Almeida de Almeida 149%, highlighting the strong operational leverage that we have been doing in this segment. And so that we can see that this business area that can be very, very positive, because even you increase the saving certificates, these revenues, you are seeing an increase of margin much higher than coming just from the revenues of the saving certificate case. Sorry. And now I pass for Joana.