Ladies and gentlemen, welcome to the video conference of results for Sequoia Logistics with reference to the second quarter of 2026, from the 1st of April 1 to the 3rd of June. Today we have with us Sr. Leopoldo Bruggen, Director- President and Director of Investor Relations. We inform that this presentation is being recorded and we have simultaneous translation. The translation is available on the button "Interpretation," for those who are accompanying the conference in English. It is also possible to silence the original audio touching on the option "Mute original audio." Clarify that any declarations made during this teleconference relative to the perspectives of business of Sequoia, operational goals, and financial goals constitute projections of the directors of the company, and therefore may or may not come to pass. People should understand that macroeconomic and political factors may affect the future performance of the company and lead to results which are materially different than those announced here. The company does not assume any obligation to update these projections due to new information or future events. To initiate the presentation of the results of the second quarter of 2026, I now pass the microphone to Mr. Leopoldo Bruggen. Thank you all for your presence. It is a pleasure to present the results of the second quarter of 2026. Thank you for the efforts of the controlling team, controllership team, as well as the doing auditors to deliver this ITR on time. The numbers of the quarter demonstrate the evolution of the company and its agenda of operational focus and cash discipline, complementing the financial restructuring initiated in 2023. We have grown with responsibility, amplifying significantly our profitability. We have generated positive operating cash, and we have concentrated our business on logistics and banking objects and the expansion of our B2B business. The financial data presented here were extracted from the quarterly information on the 30th of June 2026, submitted to revision, limited revision by the independent auditors. On slide number two, we present the operational focus of the company, which is to remain the largest player in banking logistics and grow in the B2B. In the quarter, we did 21.2 million deliveries of banking objects, maintaining stable volumes and reinforcing our position of leadership in that market. Our network of deliverers of franchise networks reaches 1,632 cities through 412 franchisees, franchise deliverers, covering the entire national territory. The network counts far more than 5,000 deliverers who are contracted by the franchisees with continuous expansion to elevate the quality of service. We attend 152 clients, including the largest banks, fintechs, payment companies, and benefit companies. A relationship higher than 12 years with the largest private banks in the country. This translates into approximately 60% participation in the market in the private couriers and logistics of bank objects. Based on the internal estimates of the company. We inaugurated a new operating unit for logistics of payment machines. This unit is located in Barueri and counts with 900 sq m of space, 750 pilot positions, and two docks. This unit, together with our network of deliverers, permits the company to attend the demands of our clients and of the manufacturers of these payment machines. The scale, capillarity, and long-term relationship continues to be the pillars of our business. On the next slide, number three, we present the principal financial indicators consolidated for the quarter under the logic of responsible growth and focus on cash. The net revenue of BRL 137 million, growth of 7.8% in relation to the first quarter of 2026. The net profit was BRL 25.4 million, an advance of 176% in relation to the previous quarter, with a gross margin of 18.4%. The adjusted EBITDA reached BRL 30.7 million, a growth of 96.8% with an adjusted margin of 22.3%. For the first half, the cash generation reached BRL 29.3 million. This performance reflects the improvement in productivity, closing of the B2C operation, which happened in April of 2026, and the continuity of the management of the legacy liabilities. For the quarter, we received BRL 28.3 million from the sale of the assets of the B2C, together with a total of $7.5 million being recognized in accounting, a gain of BRL 14.8 million. On the next slide, number four, we present the demonstration of the summarized results. The net revenue grew from BRL 127 million in the first quarter to BRL 137 million in the second quarter. While the cost of our services offered fell from BRL 118 million to BRL 112 million, raising the gross margin from 7.2% to 18.4%. Productivity has been increasing every month, permitting increases in the improvements in this margin. The accounting losses was reduced from BRL 77.1 million in the first quarter to BRL 7.2 million in the second quarter, an improvement of 90.6%. This result still contemplates financial expenses of BRL 21.1 million, depreciation and amortization of BRL 15.6 million, a goodwill of BRL 16.6 million, and legal provisions of BRL 4 million. Provisions for receivables of BRL 0.8 million, and rescissions for the restructuring of BRL 2.1 million. The largest part of these last ones have no cash effect, no immediate cash effect. Our dedicated legal team is working on this substantial civil and labor-related cases. For the operational improvements with the exit from the B2C and the management of this legacy liability, the adjusted EBITDA went from BRL 30.7 million with a margin of 22.3%. It was positive in BRL 30 million with a margin of 22.3%. We show the composition of the revenue by business line. The banking logistics registered BRL 137 million, growth of 7.9% in relation to the first quarter of 2026. The performance was sustained by 7.2 million deliveries per month, approximately 60% of market share among private couriers, and a gradual increase in the average ticket with volumes that are stable from quarter to quarter. Beyond the improvement in margins, we inaugurated a center for the operations of banking machines, of credit card machines, and we're doing an internal work for technological innovation for logistics of these objects. On the B2B, the revenue was BRL 19.7 million, a growth of 57.9% with more than 400 partners registered, and an advance of contracts of full truckload to large industries, and an operation of milk run operations between hubs and marketplaces. The B2C operation was closed in April of 2026 with the sale of the Damon Mega Sorter for $7.5 million with the cession of the leasing contracts and distribution program of the voluntary retirement of workers. On the next slide, number six, we present the reconciliation of the adjusted EBITDA to give total transparency about the quality of the results. Starting from an accounting EBITDA of BRL 29.5 million positive and adjusting the effects of the recurring operations, that do not reflect recurring operations, the negative EBITDA, B2C discontinued, and the provisions for legal and labor cases and losses in accounts receivable, the accounting gain from the sale of the assets of B2C and in undeductible expenses and adjusting accounting adjustments beyond the rescissions from the restructuring. In this way, we arrived at an adjusted EBITDA of BRL 30.7 million, growth of 96.8% in relation to the first quarter of 2026, a margin of 22.3%. On the next slide, number seven, we detail the management of our cash, which is our priority, our number one priority. For the quarter, we have generated operating cash of BRL 19.1 million. It came with a negative impact of approximately BRL 3 million of the operation to B2C, which was closed in April of 2026. We maintained our operational suppliers up to date without any late payments, valuing the franchisees in our network responsible for almost 400,000 deliveries per day. We received BRL 28.3 million in the quarter from the sale of the assets of the B2C, together with $7.5 million, which was leaving us with approximately BRL 10 million to receive in the third quarter, our receivables for the third quarter. We have also destined BRL 24.2 million for the reduction of legacy liabilities, including BRL 2.5 million for the liquidation of the short-term obligations from the plan of Extrajudicial Recovery, and BRL 5.6 million with reference to the first payment on the transaction with PGFN. In the first half of 2026, generation of operating cash added up to BRL 29.3 million. Anticipations from the banking clients which were amortized are being recomposed, maintaining virtually stable our financial flows and focusing on the reduction of the labor cost legacy, civil and tax losses. In the next slide, we present the capital structure and the debt structure. The cash closed the quarter at BRL 46.2 million, before BRL 30.9 million in the first quarter of 2026, reflecting the sale of the assets of B2C and the generation of operating cash. The net debt was reduced from BRL 289.9 million, was reduced to BRL [280.9] million. The net equity remained negative in BRL 252 million and presents an improvement in relation to the first quarter of 2026, reflecting the continuity of the restructuring currently underway. In the first half of 2026, there was an increase in the capital of the company of BRL 566 million through the mandatory conversion of debentures into shares. The accounts receivable grew with the expansion of the B2B portfolio, while loans and financing remain in the process of renegotiation, with long-term payments concentrated in 2029 and 2032. We are continuing to advance with the tax negotiations and the management of these contingencies. On the next slide, number nine, we resume the financial restructuring and its effects on the capital structure of the company. Three fronts reduced our debt and sustained the operational continuity. First, the Extrajudicial Recovery plan, which was approved judicially in March of 2025, with the adhesion of creditors of approximately 54% of the credits covered. This generated a reduction of BRL 148 million in liabilities. In the second quarter of 2026, BRL 2.5 million were liquidated, the last short-term obligations, leaving only the parcels for the payments for 2030 to 2033. Secondly, the transaction with the PGFN, signed in April of 2026, reduced by 82% the federal tax liabilities of approximately BRL 631 million to BRL 112 million, to be paid in 15 months in cash or through a note authorized by third parties. The first parcel payment of BRL 5.6 million was paid in the second quarter of 2026, reducing the balance to BRL 107.1 million. Third, capitalization through obligatory conversion of the debentures into shares. The increases of the capital of BRL 566 million in the first half of 2026, and the remaining debts, which will come due only in 2029 to 2032, with a short-term amount being renegotiated for the third quarter of 2026. These three fronts, combined with the exit of the business lines, which were money-losing, in the case of the sale of the B2C, should permit the company in the expectation of our management to generate operational cash to amortize this legacy and recover the growth in a rational way. On the next slide, number 10, we present the perspectives anchored in the core business and in cash discipline. Our strategy has four pillars. First, the concentration in the core business, logistics for banking objects. Approximately 60% market share and a selective growth in B2B, which advanced 57.9% in the quarter. Secondly, monetizing the assets of the B2C assets, the BRL 28.3 million received in the second quarter of 2026, and approximately BRL 10 million to be paid in the third quarter. Thirdly, investment in technology, including [Non-English content], the use of artificial intelligence for the improving of deliveries, and a data lake which will generate each payment in real time. Fourth, the expansion of our own network with franchise deliveries and the increase in the volume of POS machines. We have now reached the end of our presentation. We closed the second quarter of 2026 with important advances, growth in revenue, strong expansion in our gross margin, adjusted EBITDA of BRL 30.7 million, operational cash generation, positive cash generation, and the continuity of the reduction of the liabilities from the past. We continue as a reference in logistics for banking objects in Brazil with national scale, long-term relationships, and an operational platform which is now more focused than ever, lighter, and more disciplined in terms of cash. We reinforce that this presentation refers to declarations which are subjected to risks and uncertainties. It is informative in nature and that the complete information, including the ITR from the 30th of June of 2026, are available on the sites of the CVM and on the investor's relation sites of the company. Remember that management metrics, which are not accounting, as in adjusted EBITDA, generation of operating cash, and legacy liabilities, are not objects of revision or audit and should not be considered in isolated way, in substitution of accounting information that may not be comparable to the metrics announced by other companies. For this, we conclude the presentation of the results of the second quarter of 2026. Thank you for your participation, and we hand the word back to our moderator. We here close the video conference results of Sequoia. In case of any doubts, the relation investor team is available through the email ri@sequoialog.com.br. Thank you for your participation, and we desire you a good afternoon and wish you a good afternoon.
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