Grupo Traxión, S.A.B. de C.V.

Greetings. Welcome to the Traction First Quarter 2021 Earnings Call Results. At this time, all participants are in a listen-only mode. The 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. Please note this conference is being recorded. I will now turn the conference over to your host, Avi Lisjain. Thank you. You may begin.

Thank you. Welcome again to Traction. I hope you and your families remain safe and healthy. I am very proud again to deliver very strong financial and operating results for the period. As you can see, we continue with a positive trend, especially in our logistics and technology business and in the personal mobility segment. Mobility of cargo grew as well, but we transfer such growth to our tech-driven platform, Traxporta. through which we can grow with no need to invest in six assets. There are two very relevant milestones to discuss this quarter. The first is that we spread out our logistics and technology business lines from cargo to report a third division, the logistics and technology segment. These business lines are supported by technology and have an asset-light approach. which will enable Traccion to grow the top line without having to conduct heavy capex, while both bottom line and profitability improve. As you have been observing, logistics and technology business have gained relevance in our P&L, and we expect these lines to continue to develop, gain penetration, and grow in Mexico. have been very well positioned to capture such expansion. And we believe that this tech driven business will continue to expand within the company over the long term. We are well positioned as well to continue to capture the expansion of e-commerce. And we expect to continue getting new clients as we move forward with our plan. As I have been saying for some time, our technological innovation has been our strongest competitive advantage. And it's precisely such innovation what made us achieve this very solid growth through the pandemic. Shifting gears, the second milestone is that we execute a new syndicate credit facility for 3.5 billion pesos, which enable us to refinance and prepare our former line. Wolf will elaborate more over this matter. With this, I conclude my remarks and I will hand over to Rodolfo Tito, go ahead.

Thank you, Avi. Good morning, everyone. Thanks for your attendance. Perhaps the centerpiece of this quarter are the results of the newly reported Logistics and Technology Division. This segment recorded quarterly revenues roughly about $1 billion, with a margin of 9.5%, in line with our estimates and communication to the market. The progress of this segment was mainly driven by an increase in last mile activity, 3PL volumes, and a relevant contribution of $128 million from our technology-based platforms, which combined show a growth of 160% in revenues. In terms of warehouse area, there was an expansion of more than 107,000 square meters compared to the first quarter of 2020, which is indeed an impressive improvement. In terms of last mile services, we handled more than 3 million pieces in this quarter with a level service above 95%, which is especially relevant since this is the highest volume structure has ever operated. In 3PL warehousing, we started operation with three new clients and continue implementing the latest technology for warehouse management. Now talking about personnel transportation, We started operations with 25 new clients over this quarter, which involved 100 new units and 150 units that were already operating with other clients. Here, we also are in the process of implementing a route management system, which we expect to save us approximately 100,000 kilometers per month. In the cargo segment, everything is running steady. We're maintaining revenues throughout higher volume in kilometers. We haven't kept our high quality service and levels of specialization, which plays us among the first choices to our clients. Since the contingency started, we have seen how consumption patterns have changed, and we have been very active to remain competitive. Finally, in terms of human resources, We conducted training on personnel communication and technology utilization to our last-mile staff and offered leadership workshops to a mid-management level. As you can see, we continue to be very busy in commercial and operating terms. Thank you for your attention. I will now hand it over to Wolf. Please go ahead.