Grupo Traxión, S.A.B. de C.V.

first quarter 2023 earnings conference 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. Please note this conference is being recorded. I will now turn the conference over to your host, Executive President Abby Litston. you may begin.

Thank you for joining. Welcome. As you can see, Traction delivered a strong set of operating and financial results. And once again, Quality Revenues and EBITDA posted record high figures in the company's history. There are several details worth mentioning this period. As always, Rodolfo, Wolf, Antonio will elaborate more in a moment. but I want to share with you some thoughts. First, we are seeing increased activity in the most dynamic markets of the north of the country driven by the nearshoring trend. Tijuana, Juarez, and the Monterrey, Saltillo, Nuevo Laredo corridor are where the most expansion opportunities are emerging. As you know, we have a tremendous presence in such geographies. and plan to continue to expand our operating capabilities to better serve our cross-border clients and those foreign companies seeking proximity to final consumer markets. Tracción has a large logistic footprint and an extensive cargo portfolio to render tailor-made solutions between Mexico and the US. Likewise, the company has the absolute largest and most modern people mobility platform to serve factories and industrial parks. In this segment, we are also finding greater commercial activity, and we are very close to complete our growth plan for 2023, which involves a large portion of our capex. Moving on, fuel costs have normalized. This item increased 10%, which is significantly lower than the growth of the revenues. The path to it effectively reflected this quarter, and the margins of our traditional business segments revealed that. Consolidated EBITDA margin came in at 17.7%, which was mainly driven by the higher contribution of the logistics and technology division, which posted almost 50% growth. Finally, TRAXION made significant advances in ESG terms. Toño will give you more details in a moment. What is important to highlight that we continue to strengthen our sustainability strategy according to our leadership commitment. We think that our current ESG framework is one of the most robust in Latin America. And our ratings and standards are proof of such advanced guidelines. We're very excited about the commercial opportunities we see ahead. Thanks for your attention. I will now hand over to Rodolfo.

Thank you. Welcome, everyone. As I just mentioned, there are significant operating advances that I want to discuss. First, Traxporta. our digital cargo marketplace continues to penetrate and gain market throughout different avenues. This quarter, such application posted more than 82% growth in revenues compared to the same period of last year. Second, we continue developing our pharma and intermodal verticals. In this line, I just want to highlight that we currently operate the absolute best pharmaceutical warehouses in Latin America. and we will leverage such capacities to keep expanding such business. There is a great scarcity value in the pharma supply chain. Interaction is a natural player to properly explode such businesses. Third, our co-operations advance ahead of expectations. Cross-border activity increased mainly by volume derived from nearshoring. We have an expansion of approximately 80 refrigerated trailers, which are mainly fresh produce exportations to the U.S. We like this business very much, basically because of its resilient nature and U.S. dollar exposure. Tracción continues to build up a strong reputation in the Bahia region in this service and to grow its market share and penetration into North America. Moving on to the personnel mobility segment, we continue to absorb great demand for our service in the most important economical regions. This quarter, we started operation with new clients and increased capacity with existing ones, totaling more than 200 new buses. Tracción continues exploring new markets where personnel mobility is still a challenge, and we believe that our solutions have an enormous value added for our clients. Finally, our 3PL logistic division posted a healthy expansion to a strong commercial activity and the incorporation of pharma businesses. All that increased our warehousing area in more than 142,000 square meters, an impressive 23.3% growth. As we always say, technology is the most significant competitive advantage and represents the highest barrier of entry in our sector. This is precisely what will continue to enable Traction to keep seizing opportunities that arise from measuring trends. As you see, it was again a very busy quarter on the commercial and operating arenas. Well, with this, I end my remarks. Wolf, please go ahead.