Ctt Correios Portgl Sa

Welcome to CTT's nine months 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 the 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. Guipe Checo, our CEO.

Good morning to you all and thank you for joining the sub-quarter results earnings call. I will invite you to start on page five. Where we can see the end of the Customs De Minimum Exemption had an heavy impact on the third quarter e-commerce solutions. While we saw Mail and Services and Banco CTT with solid performance, providing a partial offset of the revenues that declined 1.2% organically in the quarter, with a big impact on e-commerce solutions of 14.1 million and that were partially offset with good performance on mail and strong progress also in the bank. On EBIT, a decline was 34.5%, so it was this one regulatory event affecting one segment, especially on profitability, and we are acting to fix it, as we'll detail on the next slides. On page 6, we can see what was the impact of the minorities. On the left side of the slide, you see the evolution of the European market, where we saw progressive growth. The decline of volumes stabilizing around 55-56% decline. The shock was market-wide. As we can see, we didn't lost share. CTT performed well, but the volume decline increased throughout the quarter and this is increasingly challenged as we manage capacity. On the right to the end side, you see the big slowdown on the growth path that we had. So we were growing above 20% on the second quarter, and this impacts the sequentially degradation of the volumes to 2.9% on the sub-quarter. On page seven, We see that our volumes were quite resilient despite these events, and that is because Iberian e-commerce continues to show robust signs of progress. We grew 43% year-on-year on this kind of customers, and in EU sourcing marketplaces, 37%, so strong performance on the Iberian. Thanks for watching and see you next time! On page eight. We showed the big impacts of the mixed change, that decrease of 20% of the chenilles in the volumes that we transport, with a very sudden and marked change on the type of flows, with 24 hours increasing 39.5%, almost 27 for quarter and quarter, The weight that we transport also increased by 1.3 times and we have more scattered pickups with 90% increase throughout Spain. This is because of the change of Chinese e-marketplaces to Iberian flows. These are the impacts on the cost profile that we can see on page 9. Our OPEX grew 4.8%. And this is a function of two things. The cost per item increase because of inflation. We continue to see fuel cost inflation and the change of mix that is driven by the drivers that we saw in the previous slides. and capacity because we continue to invest in capacity with decision made one year two years ago as we envision a profile of growth that was different from what we are witnessing today on page 10 we see also the The good impacts of the new mix as these kind of volumes commanded a higher revenue per item and that is showing through the P&L as we were able to almost offset the volume declines of 2.9 with the 2.4. and this is also good news going forward as we work to fix the economics behind the new volume reality. On page 11, we see the impact of these sudden changes on our EBIT that declined 71% on the SEP side, so volumes decrease, new mix, and the capacity investments that we made for a different volume reality are indeed impacting our EBIT on this quarter. We act immediately. We are adjusting costs to align the pressure in volumes in the new mix, so we are right-sizing our structure. We reduced more than 300 FTEs in our spin and we are reassessing all the new network expansions. We are also acting on the price lever as inflation continues to affect our business. We need to be more efficient passing through those inflation costs to our customers and we need more price discipline on the areas of growth. And we are accelerating volumes outside of the Asian, something that we already see but we want to accelerate further, assuming the same attacker posture in Spanish and Portuguese domestic volumes. and increase the productivity in international outbound volumes using the new partnership and the new offering that we are getting from our new partners in DHL. On page 12 we see Our customer clearance activity that had a deterioration of the revenue in the sub-quart of 2026. Same trends that we saw in the last mile, but with less diversification alternatives. The customs clearance outside of Europe flows are 95% with origins in Asia, and as such, here is pretty much no alternatives of diversification. And that's why we are acting heavily on resizing the cost base. We are accelerating FT reductions in June. We are closing a number of geographies that on this new B2B reality doesn't make sense. and as such we are aligning also the operating structure to these new volumes we are refocusing our network on the new b2b flows we since uh The minimis of 1st July and this new handling fee introduced this past weekend, we see a massive diversion of the flows to B2B and as such we are adjusting our footprint for where we see scalable custom clearance hubs in B2B. and considerating our resources on those corridors that we see migrating for Eastern Europe and Central Europe. And with that we expect to reveal the profitable growth where we We'll see scale resume throughout the year of 2027, with Poland already seeing those early signs. Poland remains profitable and is growing, and we see that growth accelerating in the near future. And with that, I'll hand you over to Joel to give you a call on underbrush units.

Thank you, Guy. Good morning, everyone. As you can see on slide 13 on Melon Services, we deliver a strong performance supported by robust demand of public debt savings products that benefit from higher investment limits that was changing this year and also attractive interest rates. Also, the launch of new treasury savings certificates in July further boost on demand of this product that was very good for our network. And with that, you can see that the volumes increased 105.7% year on year and 45% against the last quarter. I would like also to highlight that our digital channel also continues to perform pretty well, attracting new savers and broadening our customer base of savers. We continue to diversify our offering across our retail network, complementing the logistics and the saving products with insurance and healthcare plans, as you know. And as you can see on the right side of the of the slide, healthcare plans grew by 90% year on year. And with these together with insurance, we are creating and building a customer portfolio that generates recurring revenue that we think is very important for our retail network and for CDT. And finally, I would like to highlight that already this quarter we launched in all the retail network the international offer of DHL and the early signs are very positive so it's also good for the coming quarters this product in the retail network. On slide 14, you can see that mail and service revenue increased 5.2% year on year to 124.3 million euros in P3 of this year, supported by a strong growth of saving placements, like I told before, and also the stable of mail revenues, despite the 8.7% decline of address mail volume. So the pricing of mail is helping us to The quarter also demonstrates that the value of diversification is good for this business unit, so recurring EBIT increased 87% to 7.8 million, driven by 89% growth in savings placements. This translates in recurring EBIT margin to 6.1% up to 3.4% in the year earlier. And with that, I pass to Joana to talk about the bank.