Grupo Traxión, S.A.B. de C.V.

good morning ladies and gentlemen and welcome to the traxion first quarter 2022 earnings call at this time all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation it is now my pleasure to turn the floor over to your host executive president abby leesting sir the floor is yours welcome everyone good morning this quarter taxion

has turned one year of reporting its logistics and technology segment independently. As you can see, its performance has been excellent and the future looks very promising. Most important is that our digital platform, Traxporta, and Tracción Logistics grew more than 86% compared to the same period of the last year. This is precisely where we see the most expansion and growth in the future. Our asset-light approach has proven to be successful. The company's quarterly results are positive, despite the disruption in fuel costs, which we are working to pass through clients. Bear in mind that this increase in fuel prices was very fast and sudden. It happened in the middle of the quarter, and the pass-through process is underway. This is something we have done successfully many times in the past, It's a normal part of the business. Moving on to our results, we continue to see strong demand in our quiz segments. As you saw, there were many interesting developments in the quarter. Our CAPEX plan is moving on as planned and according to our expectations. On that line, please be advised that due To the disruption in delivery of new units, we anticipated our capex needs since last year, which will turn into a competitive advantage as we will be able to address demand in a more efficient manner than our competitors. As usual, in a moment Rodolfo, Wolf and Toño will provide more color on operating and financial metrics. On the M&A front, in March we announced that Traction executed an agreement to acquire Medistic, a leading company that provides specialized 4PL solutions in healthcare, mainly medicines and medical accessories. With these acquisitions, we entered the pharma vertical through an asset-light approach and within a resilient industry. The most significant synergies we expect to realize are on the commercial front. there are many interesting opportunities to be exploited, together with other relevant operational and financial efficiencies as well. The transaction is subject to regulatory approvals, which Traction expects to obtain in the following months. Moreover, in terms of ESG, I am very pleased to share that since General Traction reports ESG figures and metrics in Bloomberg for everyone to review. We continue to work very hard for our foundation to enhance many social, educational, and mobility programs throughout the country. With this, I end my remarks. Please, Rodolfo, go ahead. Thank you, Avi.

Good morning, everyone. I'm going to start with some highlights in our logistic and technology segment. As Avi just mentioned, our digital platform grew more than 86%. but there are other significant aspects to discuss as well. In terms of last-mile solutions, we increased more than 10% of our daily handling volumes. Our state-of-the-art business model allows us to render a high-quality delivery process in terms of collections, evidence, and real-time visibility. We further increased by 9,000 users our digital app for last-mile services, with a very high retention rate, about 76%. while we continue to bring up-to-date our technology platform. This quarter, we started operating a distribution facility in Mexico City, which will increase our overall output by 30%. Moving on, in terms of 3PL, we increased more than 77,000 square meters of warehouse area, mainly due to new business and expansion with existing clients compared to the first quarter of 2021. On a special note, we started conducting inventories using drones, which will allow us to become even more efficient. Accuracy is guaranteed. No human contact needed. And information gets locked and compared in real time. growth in revenues has softened by increase in fuel costs. Additionally, our refrigerated operations grew 36% compared to the same quarter of last year. We have built a very strong position in the Bahia region for this kind of service, mainly to the border, where we have strengthened by 176% our transfer fleet in order to be more effective in border crossing. Finally, in terms of mobility of personnel, we kick off operations with 70 clients, totaling more than 500 new units, as a result of our effective commercial strategy. We have further implemented more technology to trace better routes and save approximately 400,000 kilometers per month, and the use of boots to improve some processes. In that line, we launched LeapGo, an app whose target is to significantly improve our users' experience. As you can see, technology is now our backbone, and our quarter was a very busy one. I am very pleased with what we have achieved in operational terms. With this, I conclude my remarks and would hand it over to Wolf. Please, Wolf.