Grupo Traxión, S.A.B. de C.V.

Greetings. Welcome to the TRACSEAN Second Quarter 2021 Earnings Call Results. At this time, all participants are in a listening 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. Please note this conference is being recorded. I will now turn the conference over to your host, Abby LeJane, Executive President and Co-Founder. You may begin.

Thank you. Welcome to Tracción's call. I am very proud again to deliver a very strong financial and operating outcome. Tracción moves forward according to plan. It's important to have in mind that the company has consistently delivered remarkable results, even with the pandemic. 2020 was a record high period for us. This year, as challenging as it has been, we continue to improve our past growth, which I believe is especially relevant given the macro landscape. The first half of 2021 looks very good. Revenues have grown 27% compared to the first half of 2020, while operating income and EBITDA have expanded 30% and 19%. respectively. Margin is over 20%, which is consistent with our long-term goal, mainly due to seasonality and to our logistic business, which carries a lower margin than traditional business lines. But perhaps the most important financial figure is the very impressive expansion of almost 57% in net income during the first six months. Moving on, our logistics and technology division continue to expand as we record significant progress. It is important to highlight that during the first six months of the year, this segment has grown almost 55% compared to the first half of 2020. In terms of our traditional business lines, there is an increase in consolidated kilometer volume, mainly driven by the evolution of our organic growth plan. In addition, we continue to improve the company's incremental ROIC as traction asset-light approach gains more relevance in our business. Moreover, in terms of sustainability, we released our integrated report of 2020 with all the proper information and development achieving ESG. You will notice a great progress. We are working to obtain two ISO certifications in terms of anti-bribery and compliance management. We'll keep you posted on the evolution of the process. Finally, Traction is very well positioned to capture the expansion of e-commerce. Since we do not see any kind of slowdown related to this channel, Quite contrary, we expected to continue to penetrate. With this, I conclude my remarks and will hand over to Rodolfo. Please, Rodolfo, go ahead.

Thank you, Avi. Good morning, everyone. Thanks for your attendance. One of the most relevant highlights this quarter is the expansion of more than 144,000 square meters in 3PL logistic warehousing. As a result of a strong commercial activity, with both new and existing clients. There are still many opportunities in this business, and we are very well positioned to capture them. Our commercial muscle is probably one of the strongest, and we carry much better margins than our competition. On a special note, we started operations of warehousing in the auto industry with two clients. Moving on to the last mile solutions, we achieved several developments as well. First, we continue to grow as we increase our package handling volume by 23%. We expanded our national footprint by more than 8% and started a cross-border operation in Tijuana-San Diego border for e-commerce clients. Furthermore, we kick off our first internally developed cross-doc solution for e-commerce, which will enhance significantly these processes. In terms of cargo, you can see a healthy expansion, both in revenues and kilometers, which was mainly driven by organic growth in our dedicated fleet format for specialized services. We have enhanced our presence in the cross-border market and managed to generate more kilometer volume in this service. Tracción continued its fleet expansion and renewal program as budgeted. and initiate an implementation of a newly developed transportation management system through Traxporta app to optimize, control, and better manage our fleet, which will further enhance our productivity and continue to ensure our high-quality services. Finally, as you can see, our personal transportation fleet show an expansion compared to the same period of last year as a result of our organic road plans as we continue to see very attractive opportunities in this segment. It is important to mention that we continue to run this segment with over-demand, mainly due to social distancing measures implemented with industrial clients. In that matter, we're currently mapping out a potential reduction in such over-demand and the eventually reopening of schools. Well, with this, I wrap my remarks. 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.