CTT - Correios De Portugal, S.A.

Hello and welcome to CTT's first quarter 2026 results conference call. This event is hosted by Mr. Gui Pacheco, CEO 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. Guipacheco, CEO.

Good morning to you all and thank you for attending our first Q conference call. I would invite you to start our presentation on slide number four, where we show a quota of resilient growth with 4.3% growth with our growth areas performing well. Passos and Banco CTT showing growth acceleration. Although, as anticipated, our profitability was impacted by a number of congenital impacts, namely the Middle East crisis and new regulation introduction in parcels, concentrated peak volumes that spilled over to the first quarter, and the storms that affected the centre of Portugal due to the hurricane Christine. And with that, our EBIT declines 35.3% year-on-year on a comparable basis. These events were contained in April, and April is showing strong signs of improvements, with SEP volumes accelerating, e-commerce solutions, recurring EBIT also improving sequentially, and the public debt placements showing signs of strong recovery and should improve further with revision of the limits that government announced last week. On page five, we can see the e-commerce solutions volumes, where we continue to see strong volume evolution with another quarter of acceleration on growth. We posted a very strong 14.3% in the first quarter and April shows strong signs of improvement with almost 30% growth on April. This growth is supported mainly on non-Asian customers with strong volume acceleration. And with this, we continue to see a very strong Iberian structural opportunity that remains unchanged. since the last quarters. On page six, we can see e-commerce solutions revenues growth that remained very solid. SEP revenues increased 14.4% on the back of strong volume growth that we saw. E-commerce solution revenues consolidated, growing on a performer basis 10.2%. The non-SEP revenues, namely on Casseza, were impacted by this continuing of low gross margin business, like handling, and the impact of the introduction of the new G4 regulation in March. Our margin at the impact of these specific events, and as such, we had a challenging margin in the first quarter, regulation peak volumes and middle east crisis introduced volatility in in the volumes throughout the quarter as shown in the instrument detail that we shared on the previous slide and that poses a number of capacity management issues that affected the the margin in the first quarter All those issues were resolved, and as such, profitability in April is showing strong signs of sequential improvement and normalizing. Abidat, I would pass you over to João to take us through the public terms numbers.

Thank you very much, Gui. Good morning, everybody. As we did in the last results call, we start with another section with our growth and diversification areas. As you can see in this slide on the left side, we show the performance of public debt placements. This first quarter, performance was impacted by two main factors. So, the lower footfall in our stores due to several storms that affected Portugal during the quarter. That led to several stores being closed for a long number of days. And also, a demanding of this quarter versus the quarter of last year when... we compared because the last quarter of last year was still benefiting from the cap increase that you see in that quarter, the last quarter of 24, and also the improvement remuneration conditions. The good news is that we already saw a sequential improvement in April, and in addition, the upgrade limits at the end of April already translate into a strong growth in the first days of May. We can highlight that these first days of May, we see two times of public place, sorry, public place death placements in the daily basis. And even in our app, we see a best day ever, like a record in our app in public place death placements. On the left-hand side, we see our diversified services we are doing, so the health plans and insurance. Here, we highlight health plans that even with these lower health falls in stores, we see the customer base continue to increase. Both health plans and insurance products are evolving very positively and helping us to build a customer portfolio. with recurring revenue and great productivity for CDP. On page eight, we see the revenues decline from 128.7 million in this quarter versus 132.2 in the last quarter. This performance reflects two main factors, so the declining mile That is a well-known trend that we are managing with improving in pricing and managing sharing with the big customers. But more important, the reduction in revenues from the savings certificate that I explained before, but it is not a trend. It is a specific impact that we already solved or is already solved, and we are seeing already a positive trend. In the other end, positive in this chart, you can see business solutions and payments, another important pillar in our diversification strategy, continue to grow. This area continues to support the overall performance of this business unit. In terms of profitability, recurring EBIT email services was impacted by lower revenues from these saving placements. Recurring EBIT stood at 4.2 million in this first quarter, versus 7.9 million in the last quarter, representing a decline of 46.6%. And the EBIT margin was 3.3% on the first quarter, versus 6.0% on the first quarter of 2025. Nevertheless, we maintain a positive outlook on this model and others, because continued growth of business solutions And we see, and we already see, this recovering on savings placements in April and these first days of May. And with this, I press to leave.