Grupo Traxión, S.A.B. de C.V.

Good day, ladies and gentlemen, and welcome to the Traction's second quarter 2022 earnings call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Abhi Litson. Sir, the floor is yours.

Thanks. Good morning, everyone. Welcome again. This quarter, Traction posted a mixed set of results. they are very good news given the global macro landscape, inflation, and supply chain disruptions. Revenues are in line with our expectations and posted double-digit figures, mainly driven by the performance of our logistics and technology segment, which reported a growth of more than 21% in revenues and an improved margin. This outstanding growth was mainly due to the success of Traxporta App and the Traction Logistics Platform, which combined recorded a revenue growth of more than 61% in the quarter. We continue to see strong demand in our traditional business line, with very attractive organic growth opportunities boosted by the near-shortening effect. Moving down to the bottom line, you will see that the main difficulty was the increase in fuel costs. As you know, we have experienced a lot of volatility in oil prices lately. Such fluctuations have caused a disruption in product availability, which resulted in price increases. As we said in our last call, we are working very hard to pass such prices increase to our clients. Given the sudden increase and current volatility, the pass-through process is taking a few months, as expected. Nonetheless, we are confident that we will be implementing higher pricing measures in the following quarters. As I said before, it's not a matter of if, it's a matter of when. If you take a closer look at our results, aside of cost pressures, there are many other indicators that are in line with our business plan. We are controlling very well those aspects of the business. Moving on, the company's cash flow positive. Net operating cash flow grew and CapEx plans was according to our goals. On ESG front, we made significant progress this quarter. We continue to bolster our strategy and believe that we have one of the strongest ESG platform in the sector. Tonio will discuss with more detail. With this, I end my remarks. Please, Rodolfo, go ahead.

Thank you. Good morning, everyone. Welcome. As Avi just mentioned, we continue to advance very well with our commercial plan. We see growing demand in our three segments and healthy expansion rates at the top line with double-digit figures. The most important growth was in the logistic and technology segment, which reported significant advances on his three business lines. Our apps and digital platforms continue to gain market share and grow above competition throughout both transaction volumes and increasing client base, which translated into higher revenues of 61.7% compared to the same period of 2021. Last mile solutions show a healthy revenue increase despite the seasonality of the quarter. We rebalanced our last mile fleet. and implemented improvements in our packaging handling processes to optimize transit times. We continue to report consistently service levels about 95%. On the 3PL side, we continue to gain clients throughout an aggressive commercial activity which has proven successful and which will be reflected in our coming quarters. We are also starting to see revenues from our new business that started at the beginning of the year. Moreover, we keep becoming more efficient operationally and we have continued to receive very good feedback from our clients. Moving on, the mobility of cargo segment increases volume in specialized services, especially refrigerated, which has become a sizable portion of our cross-border activity. As a result, revenues per kilometer increased 10.4%, which also reflects some increases in price that we have been starting to apply. Our cargo operations are moving as planned. Finally, The mobility of people segment showed progress on its organic growth activity. This quarter, we started operation with 49 clients for a total of 290 new units. We implemented several new technologies for artificial intelligence programs and other administrative enhancements that are great value-added services for our clients. It has been a very busy semester for this segment. Thanks for your attention. I will now hand it over to Wolf.