Grupo Traxión, S.A.B. de C.V.

Greetings. Welcome to Group O Traction 1Q26 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 that this conference is being recorded. I will now turn the conference over to Abby Litschein, Executive President. Thank you. You may begin.

Thank you and welcome everyone. I will start with a high-level overview before handing it over to the team for further detail. We continue to experience disruptions in our cargo division, primarily driven by macroeconomic and geopolitical uncertainty. The current tariff environment has resulted in irregular demand patterns, reduced client activity, and pressure on volumes. This in turn has intensified pricing dynamics across the transportation industry. Looking ahead, We anticipate 2026 will remain a challenging year. We expect continued volatility in demand and operations, ongoing pressure on pricing, and temporary increases in fuel costs. As you know, our contracts include fuel pass-through mechanisms, which serve as a natural hedge against oil price volatility. We will begin executing these clauses shortly. However, there is typically a lag before their full effect is reflected. Most important, we view the current fuel price movements as temporary and less severe than those experienced four years ago. In this context, we are taking a disciplined and proactive approach. We are implementing a series of measures designed to mitigate downside risks and protect our financial performance. These actions include a reduction of approximately 500 million Mexican pesos in capex, a comprehensive reorganization of our cargo division, a reduction in the asset base, potentially up to 25% of the fleet, a reconfiguration of our administrative, operational and commercial back-office functions. At the core of this plan is the rationalization of underperforming assets. By cutting down the least profitable units, we will reduce associated costs and expenses, generating an immediate and sustained positive impact on margins. In parallel, we see an opportunity to migrate part of this demand toward Traxporta, our asset-like platform, enabling us to retain client relationships while improving capital efficiency. Ultimately, this strategy allows us to shift from a capital-intensive model toward a more scalable asset-like structure. We expect this transition to enhance efficiency, improve asset utilization, and strengthen the resilience of our business. These initiatives will also drive higher productivity across our existing resources and new capacity generated this year. while supporting our objective of reducing leverage by year end. At the same time, we will continue to reinforce our operational infrastructure and financial flexibility, positioning the company to respond effectively when market conditions improve. Thank you for your attention. I will now hand it over to Rodolfo. Thanks, Abi.

Welcome, everyone. Good morning. I would like to speak about the main disruptions that have affected our business. particularly the cargo mobility segment that comes mainly from three fronts, demand, exchange rate, and fuel price. In terms of demand, last year, during the weeks after the so-called Liberation Day, we started to experience erratic demand from clients of many industries, mainly automotive, electronics, and industrials in general, which disrupted overall supply chains that in the end impacted our logistics operations. Such disorders in demand happened through most of 2025 and have continued during the beginning of 2026. Moving on to the exchange rate. As you know, we have several multinational clients that have strong footprints in Mexico and large export operations into the United States. With a stronger Mexican peso and a weaker American dollar, such clients face financial challenges as they get the same amount of dollars for the goods they export, but they receive less Mexican pesos. with their cost and expense structures in local currency. That has diminished their operations, which has had an impact in traction, as we experienced two phenomena. One is a reduction in operating volumes due to the decline in our clients' activity, and the other is that we have a portion of revenues denominated in American dollars, which has the same negative monetary effect as with our clients. Finally, the recent military conflict in Middle East has caused volatility in oil prices, which altered our fuel costs in March. As you know, we have a pass-through clause and are currently working with clients to put such clause into effect. However, we do not foresee this conflict going for much longer. Having said all of that, I think you can see what has happened more with our operations with more clarity. We are starting to see some clients returning to previous operational levels. There are others starting to make decisions they put on hold last year. We hope to see some signs of normalization in the next quarters. With that, I end my remarks. Thanks for your attention. I will now hand over to Wolf.