Grupo Traxión, S.A.B. de C.V.

Greetings and welcome to the Traction Second Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I'd now like to turn the conference over to your host, Mr. Avi Lichtstein, Executive President of Traction. Thank you. You may begin.

Thank you. Welcome again, everyone, to our earnings call. I hope that you and your families are okay, and I'm deeply sorry for how the contingency has evolved and hope that we return to normal soon. Despite the negative landscape, Traction delivered solid results. Perhaps the most relevant aspect to highlight is that net income grew more than 100% compared to the same period of last year. This very positive outcome was mainly driven by our resilient business model and the capability of the company to react during the contingency. Rodolfo Wolf Antonio will take you through the most important details of the quarter that brought this excellent result. We continue to keep a close control on costs and expenses that resulted in significant savings that boosted margins and net income. we managed to achieve a very effective asset utilization despite of the global landscape. Regardless of the downturn of some industries, we were able to allocate our fleet toward different sectors of the economy that were demanding our services and take advantage of our competitive position. This was possible because of the strength of our commercial muscles, the diversity of our service portfolio, the excellent relationship with clients and the flexibility of our fleet. We managed to provide expanded capacity to some existing customers and even to create new clients. This is proof that we have one of the strongest commercial forces in the sector. When I founded Traccion, I designed a resilient business model based on diversification, discipline, and innovation. I'm proud to say that this was precisely what helped us to weather the storm of the second quarter. Since we became public, we have talked extensively about the strength of our business model. Now we are seeing the benefits. Having said this, I just wanted to confirm our guidance for the year and reinforce our commitment to continue operating efficiently and profitably. In terms of innovation and disruptive technology, I'm very proud to share with you that this quarter we launched two applications. The first is called Traxy, a mobility application for people commuting through which users find predetermined routes and they sign up for rides. This way they go safe, comfortable, and on time. It was launched early than we intended and support medical staff to commute safely and totally free of charge. The second is Traxporta, a digital platform through which we connect clients that require cargo services with pre-certified freight operators. With this application, Traxion promotes an asset-light model based entirely in technology and know-how. Finally, as many of you already know, we released our first integrated report in June. We disclosed both financial and non-financial information. Two years ago, Tracción started a long, consistent journey to integrate sustainability into the business. Our institutional approach, client orientation, and operating excellence are the result of many decades of accumulated experience and leadership in each of our business units, as well as of our commitment with people, the environment, and the development of Mexico in general. I will now hand over the call to Rodolfo. Please go ahead.

Thank you, Avi. Before talking about second quarter highlights, I would like to talk a little bit about the industry and our company. Regarding the pandemic situation that the world is facing, we are very proud to be part of an industry that has and will continue to have an important role in the recovery of the economy. This business has high barriers of entry, and requires a deep know-how to be successful. Our business requires scale, innovation, state-of-the-art technology, and extensive safety protocols. Every day, our fleet moves people throughout thousands of kilometers under the highest quality standard, operating with the utmost efficiency and close monitoring. By being successful in these areas, We have been able to build a strong and profitable business, integrated by prosper companies that have been running for several decades. Traccion has an extensive and diverse client base that has been assembled throughout years and years of hard work and operating excellence. It is precisely our Star B platform that has enabled Traccion to seize opportunity and continue running under adverse circumstances. such as those of the second quarter and the COVID-19 pandemic. Having said that, let me watch you throughout some relevant aspects of the second quarter. Even though our kilometer volume decreased more than 18%, our revenues grew 6.9%. Most importantly, the negative effect of the pandemic did not pass through the bottom line. Wolf would give you more details over the financial shortage. We managed to achieve these outstanding results by being disciplined, innovative, and diversified. We were extremely active in commercial terms. Our sales force stayed in close contact with both existing and new clients, and we were able to gain new business and expand the capacity of some of our current accounts. On the operational side, we started the quarter with some uncertainty. But as the period evolved, we were able to set up operational platforms in a good, steady rhythm. For example, in cargo, the auto industry was completely shut down, and we had to shift our fleet to other sectors such as retail, consumer, and food. We rebalanced our fleet in record time, and we proved that our commercial team is the best in the industry. Our logistics segments show a significant increase in operation. Deliveries grew as the e-commerce channel gained momentum, and the last mile in warehousing business grew following the new consumption trend in this contingency. In terms of personnel and student transportation, even though schools and industry shutdowns Because of the importance of social distancing, several existing and new clients expanded their fleet to try and offer their staff the safest way to get to work by avoiding public transportation. Tracción was able to use the idle fleet to provide expanded capacity to both existing and new clients, mainly throughout its strong commercial muscle, operating excellence, long-lasting client relationships, and state-of-the-art technology platform. By mid-June, operations started to normalize. It was a very complex quarter. It was a great test for the company, but especially for our management team. And I am very proud to say that we have proven that we do have the best transportation and logistics team in Mexico. With this, I finish my remarks. I will ask Wolf to guide you throughout our financial information. Thank you.