CTT - Correios De Portugal, S.A.

Good morning and welcome to CTT's 9 months 25 results conference call. This event is hosted by Mr. João Bento, CEO of CTT, by Mr. Gui Pacheco, CFO of CTT, and by Mr. João Sousa, CCO of CTT. Please note that this conference call 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 hand and we will give you access to the microphone. If you are dialing from the phone line, press star nine to raise your hand and star six to unmute yourself. I'll now turn the call over to Mr. João Bento, CEO.

Good morning, everyone. Welcome to our third quarter results presentation. I would invite you to follow us through the presentation that has been distributed yesterday evening. So if we move to the first slide, slide number four. We have a plot of the bridge of the revenue and EBIT in the quarter with what we call resilient organic growth. Revenue is growing 6%, recurring EBIT doubling that 12% with positive contributions from all the business lines in terms of revenues. This 6.1% growth are in fact 17.2% taking into account the contribution of CACESA. And on EBIT, the performer growth of 12.3% corresponds in fact to 38.1%, which illustrates how competitive the addition of CACESA uh represented to our e-commerce solutions uh portfolio moving to slide number two and with additional um with additional detail on the growth of parcels volumes. We see a comparison between second quarter and third quarter with a slight sequential improvement in e-commerce volumes. But we have to take into account that there were a couple of events very significant in the end of September. that that somehow impacted volumes in the quarter indeed we had this typhoon ragaza in in south asia that kept significant amounts of volumes e-commerce volumes sourced in China in the ground, so they could not fly. Some of them were sent by land, but there were also impacts in the border between Poland, Belarus, and some of the volumes that came through roads were also held in there. And there was also, well, I would say meaningful delay in mail volumes that we can discuss later on. The good news is that all these volumes were merely delayed and they showed up already in October. But on the right-hand side of the slide, we can see that we have a, well, double-digit growth in July, in August, and then in September, a flattish improvement basically for the reasons that we have mentioned. So because of that, we keep quite confident, also because October is looking extremely positive, and we anticipate a strong growth outlook for volumes around 15% year on year for the fourth quarter of this year. Moving to slide number six and moving from volumes to revenues and margin. What we see is an improvement of 36% in revenues that without CASEZA would even so represent a double digit around 11% growth, which is significantly amplified when we move to the EBIT margin, in the sense that with the pro forma of CASEZA, the growth would be very slight, 4.5%, but indeed a 50% growth on EBIT. The good news that we'd like to highlight here is that although, well, despite of these volumes delayed, given the typhoon and the closing of the Polish border, we still see an improvement in margin from 8.7% to 9.5%. That, as you know, is, well, the best EBIT margin for any personal business in the market. So, given the contribution of Casseza, that differentiates our E&P offering. With this integrated model, we continue to drive profitability in parcels, and in that sense, we think that we should signal that. Moving to mail, I will pass the floor to my colleague, João Sousa.

Thank you, João. Good morning, everyone. On mail and other services, as you can see, in the third quarter of 2025, we are already seeing a recovery in address mail, with volumes down only 4.3% compared to a decline of 8.5% over the first nine months of the year. In fact, this improvement reflects a gradual stabilization of the activity after several quarters of more pronounced declines in traditional male volumes. This recovery is mainly explained by the normalization of volumes and the clearance of backlog from major clients, which had a negative impact in previous quarters. And we are seeing also this positive trend already or continuing in October that reinforced this recovery momentum. I would like also to highlight the business solutions that is driving good performance. Business solutions continue to play a key role in supporting both both revenues and margin in the mail and others business area, with a recurring growth of 10.9% year on year. As with these mix of revenues and services, as a result of these, we have a total revenues reaching 341.9 million euros, representing a limited decrease of 1.9% comparing with the previous year. On EBIT, EBIT for the male and other segments took on 2.28 million for the first nine months, maintaining a flat margin of 8.9%. This stable performance demonstrates that our operational discipline on cost control continues to managing these ongoing structural changes in the male market. On slide 8, and now we are going to financial services and retail, we continue to see a sustained performance across public debt and insurance offering. Financial services continue to show a solid and consistent growth. supported by strongest results in public debt products and insurance. Public debt placements up to 167% in Q3 compared with the versus period in last year. Savings certificates maintained like a preference savings vehicle for the Portuguese citizens. And I would also like to highlight that the digital channels for this product continue to perform strongly, and September was the record month for these channels. This also allows us to bring new citizens to this product. Also, we are with a robust growth in insurance and health plans. We are in this strategic to build the recurring revenue streams to continue to deliver health plans. The stock of health plans growth 69% versus the end of last year and almost 12.8% on quarter on quarter. Insurance products also with a very good outlook, performing pretty well. And I would like also to highlight that already in October, we launched a new health insurance that will also allow us to have a new product in this area. And the first numbers give us also a very good outlook for the coming months. Seeing this on this business area, the revenues up to 57% reaching 9.8 million and EBIT up to 44.8% to 5.2 million. This reflects the success of our diversification strategy for this business area. And now pass to Guy.