TRAXION, life in motion. TRAXION, life in motion. In only 10 years, TRAXION has consolidated as a logistics leader and mobility leader in Mexico, integrating a solution or full portfolio solution unique in Mexico with a disruptive solution approach. TRAXION takes care of the entire supply chain from end to end by using the latest generation technologies, a robust commercial force, and a competitive team. It's always been characterized by the technological evolution, financial discipline, as well as the diversification. This is about a history of accelerated growth and profitable growth with a solid commitment of long-term valuation, always surpassing expectations. TRAXION, life in motion. Hello. Good morning, everyone, and welcome to TRAXION Day 2022. I am Ana Paula Ordorica, and I am delighted to be hosting this event once again. TRAXION has greatly evolved in many fronts, but perhaps the most relevant of all would be the technological transformation the company has undergone in recent years. Today's topic is precisely technological innovation. In order to talk about this, we've got Aby Lijtszain, Co-Founder and Executive President, Rodolfo Mercado, the CEO, Wolf Silverstein, Finance Director, and Antonio Tejedo, VP of Investor Relations, who will show us with a lot of detail how using different technologies have played a fundamental role in the growth, the operation, and the strategy of the company. In the last two years, TRAXION has broken records in different metrics and has been positioned as a leading company in the sector. All of this thanks to the design of their business model and focus on technological developments for asset-light businesses. No doubt, TRAXION development has truly been outstanding. I will leave you now with Aby, who will be telling you about the technological transformation TRAXION is undergoing. Also among us are the Board of Directors of the company, who will be introducing different aspects of TRAXION. We will be waiting for your questions at the end of the presentation so that these members of the Board of Directors can answer them. Thank you, Ana Paula, and welcome to TRAXION Day 2022. The technological innovation in the logistics industry is a reality. This is a global trend where the player who arrives first with a competitive technological platform will have an advantage position in all fronts. This transformation, it is a necessary evolution process in order to satisfy our customer needs in an effective and profitable fashion. Technological platforms will be the winners, and they will have a very relevant participation within a fragmented market that's in current growth. Technology reduces costs, increases efficiency, and provides transparency, security, and precision, while it minimizes the intensity of the necessary capital to grow. Therefore, logistics processes are optimized and allow us to provide customers that are more and more sophisticated in their requirements. One of the main pillars under which I founded TRAXION 10 years ago is the technological innovation. In this sense, for many years now, we've migrated to a virtual model based on the latest technology that not only has it allowed us to be placed in an advantage position throughout the pandemic, but it's also allowed us to develop business lines that have drove growth and have allowed us to take leverage in a lot of commercial muscle and operative infrastructure. Perhaps the most relevant aspect is that for us the technological transformation has been the foundation for the development of our asset-light businesses, and it is precisely innovation that will help us to continue strengthening these business lines. Technological platforms, mobile apps, and logistics services that allow us to make money with relatively little investment will grow and will become [audio distortion] of Logistics and Technology, whose scope was to dedicate a segment exclusively for asset-light businesses. As you have seen, this segment has delivered outstanding results, and we hope it will become a greater part of business at a medium term. Particularly, throughout the first quarter of 2022, the income of our digital apps and technological platforms grew over 86%. This business is the one that has the greatest expansion potential within the company. Through this focus, we have gained market participation, increased our service level, our effectiveness, and our profitability. In TRAXION, we work for the supply chain from beginning to end, and we create an added value for all of our interest groups and stakeholders. In only 10 years, TRAXION is amongst the biggest mobility companies in Latin America. We are one of the logistics platforms, 4PL, most important in Mexico. We are in the first places between 3PL service companies that are the largest ones in the company. Nos hemos convertido en uno de los proveedores de soluciones de última milla más relevantes del mercado. We have transformed into one of the suppliers of solutions in the last mile that is the most relevant within the market. Creamos una plataforma digital. We've created a digital platform. Que conecta clientes con transportistas y optimiza sus gastos a través de un marketplace único en la industria. That connects customers with transporters and optimizes their expense through a unique marketplace within the industry. Aplicamos tecnología de punta a nuestros negocios tradicionales para brindar mayor transparencia, seguridad y tranquilidad a nuestros clientes. We apply the latest technology in our traditional businesses in order to provide greater transparency, security, and tranquility to our customers. Esto representa por mucho nuestra ventaja competitiva más importante y es la barrera de entrada más alta en nuestro sector. This represents by far our most important competitive advantage, which is the biggest hindrance for entering our sector. En el segmento de movilidad de personas, somos el jugador más grande. In the People Mobility segment, we are the biggest player. Operamos con tecnología de punta para garantizar la seguridad y la eficiencia del servicio y hemos sido un participante clave en el desarrollo de este negocio en México. We operate with the latest technology in order to guarantee security and efficiency of the service. We have become a key participant in the the service. We have become a key participant in the development of this business in Mexico. Les presento a Gustavo Redondo, quien es responsable de nuestro segmento de logística y tecnología, para que nos muestre cómo funciona la aplicación de Traxporta. Nos vamos hasta uno de nuestros centros operativos. I wanna introduce Gustavo Redondo to you, the person responsible for our Logistics and Technology segment, so that he can show us how the Traxporta app works. Gracias, Gaby. Bienvenidos a nuestro centro de operaciones digitales de Traxporta. Thank you, Aby, and welcome to our digital operations center of Traxporta. En esta ocasión, les mostraré el funcionamiento de nuestro modelo de operaciones digital, un modelo innovador en el mercado, ya que operamos 100% en un modelo as a service que nos permite ser rápidos y flexibles en la estrategia que tenemos de expansión en nuestro modelo de negocio. Today, I'm gonna be showing the working of our digital operation model, an innovative model in the market. We operate 100% in an as a service-like business model that allows us to be fast and flexible in the expansion strategy we have for our business. Por ello, TRAXION ha desarrollado una plataforma de última milla con la última tecnología de clase mundial basada en las necesidades del mercado actual. For that, we've developed a company with the latest technology, a world-class, based on the market needs for our operations. This is an avant-garde platform that places us in a competitive position within the market. Traxporta es una aplicación creada para poner en contacto a clientes con transportistas. Los clientes publican sus necesidades de carga, se automatiza el proceso desde un dispositivo y se ofrecen las tarifas en tiempo real a través de un sistema tarifario, ofreciendo total transparencia para todos. Por otro lado, los transportistas tienen visibilidad de todas de un sistema tarifario, ofreciendo total transparencia para todos. Por otro lado, los transportistas tienen visibilidad de todas las cargas publicadas para así seleccionar la mejor opción de acuerdo a sus capacidades y disponibilidad. Traxporta is an app created in order to put in contact customers with transporters. Customers post their loading needs. We optimize this process through a device to put in contact customers with transporters. Customers post their loading needs. We optimize this process through a device to put in contact customers with transporters. Customers post their loading needs. We optimize this process through a device and we'll get to know the rates in real time through a rating system, offering complete transparency. On the other side, transporters will also have a good view of all of the posted loads, therefore selecting the best option in accordance to their capabilities and availability. Nuestro equipo de operaciones supervisa y monitorea las cargas por medio de una torre de control, obteniendo la ruta estimada, el punto exacto de recolección y el tiempo estimado de entrega, así como el seguimiento minucioso de los eventos de carga, incluido el temporal. Adicionalmente, la torre de control genera el estatus en el que se encuentra la carga en todo momento, brindando así un mayor control y certeza, lo que se traduce en un servicio de valor agregado para nosotros. Our operation team supervises and monitors the loads through a control tower, obtaining the estimated route, the exact collection point, and the ETA, as well as a specific follow-up of all of the loading events, including temporal. Additionally, this control tower generates the status that the load is found at all times, providing like this greater control and certainty, translating this to an added value service for our customers. Al momento de la entrega, se recopilan todas las evidencias de acuerdo con la configuración del cliente, como imágenes de la carga en el momento de la entrega, firmas correspondientes, cantidades y otros detalles relevantes del proceso, dando transparencia y visibilidad tanto a clientes como transportistas. The moment of the delivery, we collect all evidence in accordance to the settings configurations of our customer, like images of the load, the moment of the delivery, corresponding signatures, amount, and other relevant details of the process, providing transparency and visibility both to customers and transporters. El transportista tiene la capacidad de enviar evidencia de manera directa para apoyar la facturación y comenzar el proceso de pago, lo que promueve mayor transparencia y confiabilidad entre ambas partes. Transporters have the capability of sending evidence through their application in order to increase invoicing and starting the payment process, which allows for greater transparency and reliability to both parties. Al final es un proceso óptimo de principio a fin, con clientes satisfechos, transportistas certificados y un equipo de soporte altamente capacitado y eficaz. At the end, it's an optimal process from end to end with satisfied customers, certified transporters, and a highly trained and effective support team. Además de ser la plataforma número 1 en México, Traxporta busca estandarizar la industria del transporte con la de países como Estados Unidos a través de tecnologías que nos permiten realizar los procesos de carga de manera ágil y transparente para todos los participantes. Aside from being the number one app in Mexico, Traxporta looks to standardize the transportation industry with that of countries such as the United States through technologies that will allow us to perform the loading processes in an agile, transparent fashion for all participants. El modelo de negocio de Traxporta contempla crecimiento exponencial. contempla crecimiento exponencial. Traxporta es una plataforma escalable con bajos requerimientos de inversión inicial para satisfacer la demanda de nuestros clientes al utilizar capacidad disponible de terceros. The business model followed by Traxporta undertakes exponential growth. Traxporta is a scalable platform with low investment requirements in order to satisfy our customer needs by using the available capability of third parties. Nuestro enfoque en el servicio a nuestros clientes y nuestra gente es la clave del éxito de nuestro modelo digital. Así es. Hoy por hoy, TRAXION es el líder indiscutible en cadena de suministro. That's right. Today, Traxporta is an indisputable leader in the supply chain. Somos la única empresa en México capaz de servir las cadenas de principio a fin, utilizando nuestra propia infraestructura. We are the only company in Mexico capable of providing supply chain from end to end by using our own infrastructure. Nos permite ofrecerle al cliente 100% visibilidad en todo momento, ser más competitivos en precio, más eficientes en operación y desde luego, mucho más rentables. This allows us to offer 100% visibility at all times to our customers, to be more price competitive, more effective in our operations, and of course, much more profitable. Nuestra estrategia en este tipo de negocios está en conquistar cada vez más mercado en los diferentes servicios logísticos que integran las cadenas de suministro, especialmente las que sirven al canal de comercio electrónico. Our strategy for this type of business continues in increasing our market role in different logistics services that integrate supply chains, particularly those that serve the e-commerce channel. Su penetración ha crecido considerablemente en los últimos dos años. Es importante resaltar este crecimiento y penetración. De acuerdo con el estudio más reciente de la Asociación Mexicana de Venta Online, el comercio electrónico creció más de 27% en 2021, después de haber crecido más de 82% en 2020. La penetración pasó de 9% en 2020 a más de 11% en 2021, comparado con menos de 3% entre 2016 y 2017. el comercio electrónico creció más de 27% en 2021, después de haber crecido más de 82% en 2020. La penetración pasó de 9% en 2020 a más de 11% en 2021, comparado con menos de 3% entre 2016 y 2017. Its penetration has increased significantly. Growth in the past two years. It's very important to Its penetration has increased significantly. Growth in the past two years. It's very important to Its penetration has increased significantly. Growth in the past two years. It's very important to highlight this growth and penetration. According to a recent study, the Mexican Sales Online Association, electronic commerce grew 27% in 2021 but after having grown 180% in 2020. Penetration moved from 9% in 2020 to 11% in 2021, comparing it with less than 3% between 2016 and 2017. En 2021, el canal de comercio electrónico totalizó más de 400 mil millones de pesos, una cifra considerablemente más alta que los estimados inicialmente. Esperamos que el canal de comercio electrónico siga creciendo y penetrando en México de manera más alta que los estimados inicialmente. Esperamos que el canal de comercio electrónico siga creciendo y penetrando en México de manera significativa. En ese sentido, se espera que los marketplaces continúen con crecimiento acelerado. In 2021, the e-commerce channel totalized over MXN 400 billion, a considerably higher figure than the predicted estimates. We hope that the e-commerce channel will continue growing and penetrating Mexico in a significant fashion. In this way, we look for marketplaces to continue with accelerated growth. Que el omnicanal cobre mayor relevancia y que las pequeñas y medianas empresas entren a un ecosistema a mayor escala. Así sucesivamente, cerrar más ciclos comerciales y la actividad cross-border cobre mayor impulso. que las pequeñas y medianas empresas entren a un ecosistema a mayor escala. Así sucesivamente, cerrar más ciclos comerciales y la actividad cross-border cobre mayor impulso. That the omnichannel will take greater relevancy and that small and medium-sized companies will enter a greater scale ecosystem. Therefore, the intent will be a fundamental piece, and cross-border activity will have a greater push forward. Particularly, el cross-border e-commerce muestra un gran potencial de crecimiento y penetración en México al ser uno de los países con mayor actividad de este modelo. De acuerdo con algunos estudios, approximately 65% de los compradores online en México realizan compras en Estados Unidos, China y Japón. Particularly, cross-border e-commerce shows great growth potential and penetration in Mexico by being one of the countries with greater activity in this environment. According to some studies, around 65% of online shoppers in Mexico perform shopping in the United States, China, and Japan. Esto representa para empresas como TRAXION una grande oportunidad de desarrollo de servicios logísticos que utilicen la tecnología como base de valor agregado, como brokerage, almacenaje y manejo de paquetes en aduana. This represents for companies such as TRAXION a huge development opportunity for logistics services that use technology as basis of added value, as brokerage, storage, and handling of packages and customs. En TRAXION hemos desarrollado servicios y soluciones logísticas a la medida con sorting automático multicarrier, fulfillment, logística inversa y soluciones logísticas de media y última milla, lo que nos ubica como una de las mejores opciones para clientes extranjeros dentro del mercado de comercio electrónico cross-border. In TRAXION, we've developed services for logistics solutions that are customized with sorting automatic multicarrier, fulfillment, reverse logistics, and logistics solution of the last and a half mile, which has placed us as one of the best options for foreign customers within the market of the electronic cross-border e-commerce. Todo esto para TRAXION produce mayor demanda de servicios logísticos propiamente desarrollados y competitivos. La compañía está muy bien posicionada para capitalizar todas estas oportunidades de forma eficiente para continuar tomando ventaja de nuestra escala. propiamente desarrollados y competitivos. La compañía está muy bien posicionada para capitalizar todas estas oportunidades de forma eficiente para continuar tomando ventaja de nuestra escala. All of this translates for TRAXION in a greater demand of logistics services that are properly developed and competitive. The company is very well positioned to capitalize on all those opportunities in an agile, effective way in order to continue taking advantage of our scale. Finalmente, queremos aprovechar el uso de la tecnología junto con nuestra gran infraestructura y la gran infraestructura operativa que TRAXION tiene para garantizar el nivel de servicio que nuestros clientes requieren y ser más competitivos en relación al precio. Una vez más, la innovación tecnológica es nuestra ventaja competitiva más importante. Del mismo modo, la innovación y los desarrollos disruptivos son queremos aprovechar el uso de la tecnología junto con nuestra gran infraestructura y la gran infraestructura operativa que TRAXION tiene para garantizar el nivel de servicio que nuestros clientes requieren y ser más competitivos en relación al precio. Una vez más, la innovación tecnológica es nuestra ventaja competitiva más importante. Del mismo modo, la innovación y los desarrollos disruptivos son queremos aprovechar el uso de la tecnología junto con nuestra gran infraestructura y la gran infraestructura operativa que TRAXION tiene para garantizar el nivel de servicio que nuestros clientes requieren y ser más competitivos en relación al precio. Una vez más, la innovación tecnológica es nuestra ventaja competitiva más importante. Del mismo modo, la innovación y los desarrollos disruptivos son características clave que nos han permitido tener una posición de ventaja desde donde podemos capitalizar oportunidades. A continuación, les mostraré algunos ejemplos de nuestras capacidades dentro de la cadena tener una posición de ventaja desde donde podemos capitalizar oportunidades. A continuación, les mostraré algunos ejemplos de nuestras capacidades dentro de la cadena de suministro. Finally, we want to leverage the use of technology along with our great infrastructure and the great operative infrastructure TRAXION has in order to guarantee the level of service our customers require and to be more competitive related to our price. Once again, technological innovation is our most important competitive advantage. Likewise, innovation and disruptive developments are key characteristics that have allowed us to have an advanced position from where we can capitalize on opportunities. Now, I will show you examples of our capabilities within the supply chain. In our 3PL division, we supply storage services to leading international companies. Our most important competitive advantage and key differentiator has always been the implementation of avant-garde technologies that guarantee the level of service demanded by our customers. Thanks to this, we've transformed in one of the key pieces for the functioning of supply chains, and the reliability and precision of our processes constitute a very important attribute within our service offer. Before products get to our facilities, we use interfaces with customers in order to synchronize the transportation from the product to the warehouse. We use technological tools of the latest generation to guarantee the reliability and trustability of the products that accesses our storage in terms of quantity and quality. The use of devices or technological apps used within our operating processes has allowed us to completely eliminate human error and increase the quality of our deliverables at levels that surpass the standards of the different services within the industry of logistics services and storage. The adoption of a high-quality service focused on the end-to-end has allowed us to surpass the KPIs in a firm conviction of exceeding the expectation of our customers. This dynamic keeps us with a disruptive way of thinking in order to constantly challenge the way in which we execute our processes with the commitment of continuous improvement. TRAXION entered the last-mile service when we acquired Redpack in May 2018. For the past four years, we've moved from being a package and messenger company to being a specialist in the last-mile e-commerce solution. We've also increased throughout this period this division's sales over four times and have increased the deliveries of the last mile over three times its original size. Today, it has the capacity of delivering over 15 million deliveries per year with a service level superior to 95% in service. We currently continue with a digital transformation process that will allow us to offer more innovative technological solutions to make the delivery process more agile in a world where customers are more sophisticated, demanding, and want immediate responses with information in real time. We currently have our own infrastructure that allows to increase our delivery time, offer more competitive prices, and keep the highest level of effectiveness. Our portfolio of the last-mile solutions. TRAXION has evolved. Today, we focus on e-commerce, international sends, B2B, B2C, retail, cross-border, consolidated loads, and very recently, we entered the pharmaceutical vertical with business of distribution of medicine and medical accessories and supplies. Our last-mile division is an agile operation that continues to evolve and adapt to our customers' needs. Through this technological evolution, we reinforce the commitment of supporting the national economy while positioning between the biggest companies in this segment in Mexico, and no doubt, as the best alternative for the last-mile solution. Cargo mobility is a basic activity for the country's economy. It's a mature business, completely fragmented and dominated by family companies. However, it still represents huge expansion and improvement opportunities. In this segment, our strategy is to continue upgrading participant capacity through services with greater specialization that have greater profitability, such as cooling load and petrochemical transportation, as well as steel and other materials that might need higher technical levels for their operation. On the other hand, we'll continue expanding our regular load services through Traxporta, our digital app. This will provide us with a greater exposition to the asset-light model of TRAXION and will provide greater operative capabilities in order to increase our specialized services for Cargo Mobility. We want to increase our advantage of customer base by offering them new services with greater capabilities and generating more synergies with this application. As a result, we expect to optimize the utilization of our fleet, meaning generating greater volume, increasing the income per kilometer while improving on the cost. In other words, we intend to take more mileage of our current fleet, selling them more expensive and operating them cheaper, as we've been doing for the past four years. Let's remember that since January 2018, after we integrated the acquisition of Bisonte and the asset of Roncalli, our complete load fleet has grown less than by 7%, while the volume of mileage has expanded in over 16%. This means that progressively, we are more effective without the need of actually increasing our fleet. Also believe it's important to mention that ever since the end of 2018, we have built a fairly strong position in the cooling load business, especially at the Mexico region. Today, we operate at around 300 cooling boxes through Egoba, and we intend to increase such capacity by 20% during 2022. Today, we've got great prestige within this service, and our plan is to continue increasing these capabilities by winning on leadership and market quota, such as we've done with other services. Likewise, within this segment, technology, it is an entry barrier fairly important, which represents our most relevant competitive advantage. With the use of different technologies, we can guarantee a high level of service while providing greater security, tranquility, and transparency to all of our customers. We've developed a technological platform that's fairly advanced and allows us to be one step ahead of the customer needs and far ahead of all of our competitors. In the Cargo Mobility segment, we have a lot of competitive advantages, one of which would be the diversity of our services. Ever since we were founded in 2011, we've integrated a service portfolio, the biggest one and most complete in the sector. All of this through successful acquisition of leading companies in each of their niches. Today, we have leading positions in several services, such as cross-border, especially within the market in Laredo, intermodal load in ports, railroads, regional load, and we operate in different specialized load services that position us as one of the best options for our customers. In this way, we have highly specialized equipment such as loadable, self-move, auto tanks, cool boxes, and other types of trailers that have allowed us to take care of a much vaster market with much higher margins. Additionally, we operate one of the biggest fleets, most diverse, and most modern in Mexico. We've got over 30 alliances with American road operators to guarantee the trust for their service and to the final destination, which constitutes a fundamental part of the supply chain and commerce between Mexico and the U.S. Now regarding technology, we use the latest generation system that allows us to optimize resources and providing transparency and tranquility to our customers. We have advanced accident prevention systems. We've conducted exhaustive tests for IT in some circuits, which have allowed us to change processes and improve routes, fuel consumption, and operator performance. On the other hand, we've implemented digitization processes for deliveries and documenting evidence better with special alarm systems for cool loads. All of the above positions our Cargo Mobility segment as one of the most competitive ones within the industry. The service level surpasses the expectations of our customers. For us, it's a matter of great pride that our services, operative scale, and our geographical footprint contribute to move Mexican economy and commerce. TRAXION is the leader in People Mobility market, mainly towards and to industrial parks. Being the pioneers with over 24 years of experience, we are a very relevant player for the evolution of this service in Mexico. For many years, the expansion of industrial parks has developed to several miles from urban centers, while the infrastructure of public transportation hasn't evolved at the same rhythm. This way, we have contributed to the development of manufacturing centers in Mexico, and those industries which have come to open operations in Mexico are providing them with mobility services of a world-class level. We've developed a very robust infrastructure of mobility services for people with capabilities of execution 24/7 uniquely in our market, taking care of customers in all sizes, shapes, and forms with different needs, but one of the most important geographic footprints within the sector. Not only do we move people, but we supply a holistic mobility solution to big players in diverse industries. We have supported in a very significant fashion the industrial development of Mexico through our scale, experience, and execution capabilities, which are superior. Our fleet is the biggest and most modern in Mexico, which positions us in an advantageous position, particularly with customers who require services with very high-quality services and grand-scale operations that result very complicated to take care of by smaller competitors. It is also a business with very appealing growth opportunities, mainly in the industrial regions that are in constant expansion within our country that present different mobility challenge problematics. At TRAXION, we supply a very effective alternative with high added value solutions, both for the companies as for the users. One of our main differentiators is the technology that we have acquired and developed through time, which can generate financial intelligence and operating intelligence by providing transparency and reliability to our customers, and with many other advantages, it also allows users to be on time, less tired, increasing the productivity and effectiveness they have, which at the same time is a benefit that is translated to our customers. We believe our technological infrastructure with constant innovation focus is difficult to replicate, which allows us to remain one step ahead within the market. Within this segment, we work with world-class customers. We provide our services through different agreements and long-term relations, whose incomes can be predictable and that they have different cost and expense structures that have been previously estimated, which represents another great advantage for us by understanding the metrics and profitability of each of our customers at all times. Likewise, similarly, our experience with this type of customers allow us to respond to our customers' requirements with greater agility and transparency, which has translated in very solid commercial relations with the long term. Now, I term. Now, I would like to introduce Elias Dana, the CEO of our People Mobility division in order for him to show us the capabilities and scale of this segment. Thank you very much all. Welcome to the People Mobility operations center. From here, we manage the operation of our 6,500 units that every day perform over 40,000 trips, go over 1 million km, and mobilize 1.2 million users who use our services to move from and to their workstations or schools. Within the People Mobility division of TRAXION are over 8,000 collaborators located at 25 different cities in the country. They use our technology in order to guarantee our over 500 customers the highest level of quality within their service. Punctuality, security, effectiveness, and profitability through a scalable operative model based on processes and point technology. This operative model has been, no doubt, a key piece in order to increasingly sustain a double-digit growth for the past five years. Just like in the rest of TRAXION segments, in the People Mobility segment, technology is one of our most important competitive advantages. We have developed a very unique monitoring and control platform that, through satellite tracking, allows us to know in real-time the status of our operations and controlling precisely each of our units, operators, and mileage with automated flow of anomaly detection and invoicing, which provides transparency to our customers and ensures a high level of service. Our telematics platform is a very relevant piece for this model. For through this, we can measure different security indicators, such as driving habits and hours of driving. We've also integrated support tools hours of driving. We've also integrated support tools for our operators, such as anti-collision system and other security apps. With this, we can generate information with which we design predictive programs in real time to improve the development of the operator as well as the unit, as well as developing constant training plans by using distance learning tools. On the other hand, it allows us to know the status of our units at all times, just like any type of failure or error, with which we can generate preventive maintenance plans and real-time maintenance plans, which allows us to significantly diminish mechanical failures and accelerate our reaction time, which optimizes the maintenance costs and extends our units' lifespan. TRAXION is a great logistics ally that provides us high levels of added value. We use software design routes that allows to perform the tracing of effective routes and providing a better service, adapting to our customer needs in a better way, monitoring the circuits, and as a result, constant improvement of the profitability for each of our customers. We have been pioneers in the use of logistics optimizers that use advanced algorithms and present different improvements of the operation scenarios. Perhaps one of our biggest strengths would be the connectivity with our users through the LiPU, our mobile app. Each of them has access to information in real time, such as the status of the route, number of stops, notifications, and alarms, as well as their ETA. Likewise, we've designed different technological tools specific for different types of services, such as, for example, our smart control app for managing different teams that allows us to provide better services and increasingly effectiveness for our customers. Every minute, we're collecting millions of data that are being gathered in our data center. With the help of globalized processes of data and artificial intelligence, we can generate dashboards for better decision-making, and therefore, continue increasing the quality, effectiveness, and security within our services. This way, we have managed to build the biggest People Mobility company in Mexico, and most modern one. Our operation will not stop here. Every moment of the day, we're performing some trip, mobilizing millions of people who at the same time are moving the industry in Mexico. Historically, TRAXION has delivered financial and operative results that are outstanding. Particularly, between 2019 and 2021, TRAXION increased their income for over 20%, while the EBITDA increased in over 33%. Also, the net utility increased by 92.4%, and the operating net flow grew almost 8%. Something particularly important, given the complexity that we've undergone through these years. 2020 and 2021 were very challenging years because of the pandemic contingencies. They were also record years for TRAXION in several metrics, both financial, commercial, and operative. These excellent results were given thanks to two factors mainly. The first one is the design of our business model, which is founded in three main pillars: diversification, financial discipline, and technological innovation, which has helped us face the dynamic environment of demand, as well as operative changes. Secondly, the positioning of our supply businesses, specifically those that function through the e-commerce channel, including, and capitalizing the potential and the opportunities of growth and penetration that this channel had throughout this crisis, as well as continuing developing our digital platforms, which allowed us to increase at the same time our participation in logistics services. In February, when we gave our 2022 results guidance, we did it through a very complicated landscape at a global level, altered by the conflict in Eastern Europe, among other factors. Today, the volatility resulting from such conflict prevails, and disruptions in the supply chain are even more pronounced. However, in Mexico, we continue observing very strong demand levels in all three segments of our business, and we're very well-positioned to capture these opportunities through our commercial muscle, our people, and the great operational infrastructure. Therefore, the CapEx plan is moving forward as established, and we expect that delays in the delivery of new units will continue throughout the rest of the year. Nevertheless, ever since 2020, 2021, we've anticipated and planned our needs, which is something that today has become a great competitive advantage that we expect will allow us to cover our customer needs, as well as the market needs, in a much more effective way. As many of you know, for TRAXION, sustainability is key. Since we're leaders within our sector, we must also have therefore the commitment of being leaders in environmental, social, and governance topics. For this, I would like to introduce Daniel Wasserteil, our Sustainability Director, and responsible for strengthening and expanding our strategies. Daniel will give us a little bit more color on what we can expect in the future in ESG-related topics. Our sustainability strategy is based on four axes, governance, people, planet, and group. We're building a very solid strategy focused in continuous improvement and leading in the sector. We report on the most important global standards such as SASB, TCFD, and GRI. We're part of the world Pact of the United Nations, and we respond to the CDP and CSA. In 2021, TRAXION was included in the Sustainability MILA Pacific Alliance Index from the Dow Jones Index family. We operate from a very robust corporate governance with a council of administration that are experts. We had our first member as a woman at the beginning of 2022 join us. As part of our risk management, we have identified the risk of climate change, and we're working for adaptation and mitigation plans. We attract and develop the best talent and promote diversity and inclusion. 37% of our positions of high and middle management are occupied by women. We're working for health and well-being, a proactive approach with initiatives and campaigns for preventive medicine. Also, since 2021, we've been strengthening our programs for training at all levels of the operation. We offer transportation and logistics effective use of our resources, as well as increasing the performance of fuel and ensuring the good development of our engines. Several of our companies are awarded with the distinction of excellent environmental development provided by SEMARNAT by a saving of up to 20% in ton emissions of carbon emitted to the atmosphere. As you can see, sustainability is an essential part of our business model. We have a very robust strategy over the last four years in order to continue being an access point and a reference point within the market. As I've been telling you for many quarters now, TRAXION is taking back the inorganic growth activity. Through this strategy, what we're searching for is to access businesses that will add value to our asset-light focus and will allow us to strengthen our platforms, offer services, as well as technological infrastructure. We have been analyzing several different initiatives in different negotiation process analysis, so we hope soon to be sharing good news with you. As we let you know, in March last year, we just announced the signature in order to acquire Medistik, a leading 4PL company that supplies logistics solution for the distribution of medicine and medical service and accessories through an asset-light focus. With this acquisition, TRAXION will incorporate the pharmaceutical vertical to our logistics, 4PL services, and last mile services, as well as to the e-commerce and consumption lines. This acquisition represents an incomparable value proposition given their high level of service, modern infrastructure, cost optimization model, total traceability, and exhaustive quality assurance processes. The main synergies that we hope to perform are, in the commercial part, we see great potential for multiplying sales within this business line in the short term. Likewise, there are several different operational and commercial and financial synergies that will allow us to contribute to improve the profitability of our [audio distortion] profitability of our [audio distortion]. This business line can generate margins of over 35%. The price that we agreed for this company was of MXN 1.537 billion that will be paid with our own resources and the debt that has come from the available lines. The operation is still subject to regulatory approval, which we hope to obtain soon. Thank you very much, everyone, for your attention. Thank you very much, Aby, and all of our team at TRAXION for this very complete explanation for what they've done and what's coming very soon for TRAXION. We are now opening the floor for your questions, and also for our Board of Directors to be able to answer. Let's start with the first question. This can be in English or Spanish. We will have translation. How do you benefit from the nearshoring trend? The key elements for nearshoring to be successful are logistics and mobility. This is precisely our business. TRAXION has a leadership position in cross-border, extensive exposure to key industries, together with the strongest commercial force and superior execution capabilities that will help clients grow. In summary, the more nearshoring in Mexico, the better for TRAXION. Aby, when you went to [Bolsa], you said you wanted to be in e-commerce, and you did. You said that you wanted the pharmaceutical division, and now you have a very solid division. What can you tell us about today? What is it that you like now? Thank you, Paula. Well, I really like Traxporta's business. I think it has a massive potential to grow, as well as a big business opportunity in the cross-border services. How does this competitive landscape for Traxporta look like? Well, I see that Traxporta has a lot of competitive advantages. First of all, the technology we have. Secondly, our commercial force that we already have within the industry. Thirdly, our operative capacity, our operation capacity. Fourth, our balance solidity. All of this has made Traxporta, 1.5 years after its creation, allows me to estimate that we are four times the size of our competitors in size. In this level of business, scalability and size is very important. What would be your valuation expectation for Traxporta precisely? That's a very tough question. What I can tell you is that I've seen some similar companies that are valuated between five and 10 times in their sales in other places around the world. We expect Traxporta, at a short-term, to be selling over $100 million. This is why, you know, I ask you to do the math. Okay. How important is cross-border businesses and how important can it be? Hello, everyone. Good afternoon. Cross-border business is something that we've been preparing with the infrastructure of the business. It's been growing for many years now. We expect now that the sales for cross-border, like direct cross-border sales for our business right now are at around 25%, and indirectly at around 50%. It is a very important position for a company, and it's a service that we've been working very hard to develop and take care of within the market. How do you expect to maintain quality of service as you use third-party drivers? First and foremost, we always certify the third parties in order to upload them in our platforms. That's the way we guarantee that the level of service is maintained. What is the next vertical that you see has a future work within our company? No doubt, technology businesses, especially apps. This is where we see a very, very promising future. What limitations do we have in growth today? Meaning, what can you not grow today at a greater rate, taking into account the positive tendencies that we're seeing, for example, with nearshoring? I mean, we don't really have a direct limitation because the growth that we're having in the logistics aspect in this third-party services, we're really exploiting those services. We believe that us, as TRAXION, with this technology, with the development that we have had in this platform, we have all of the capacities in order to fill our customers' needs, especially in the cross-border sector. What is the future of the ESG strategy within TRAXION? Thank you. you. The ESG strategy future of our company lies in strengthening the current strategy. Environmentally, we will have KPIs that are much more specific. We'll continue with our emission reduction strategy, and in broad terms, we'll continue promoting different initiatives to Fundación TRAXION and different social programs. Regarding governance, we'll be trying to improve our inclusion diversity programs joined to what we already have today. How will you minimize the threats that include getting private business with the public sector where you have recently entered, specifically this health sector? All right. We see this business and this customer as any other business or any other customers we have within the organization. We will do it by offering a good service, having better infrastructure, as well as training our people as best as possible for everyone who works within the organization. We don't really see this is gonna be anything different from what we've been doing for many years at TRAXION now. What is the size of the growth opportunity in Medistik? How much or how many times can you grow Medistik sales in the next years? Yeah. Hi. We bought Medistik and we still haven't made the full transaction. We expect this to be around the beginning of third quarter of this year. This company was expected to sell this year around $30 million, and we easily think we can double this exposure in a full year by the end of one full year. We think at least $60 million will be the next growth we were expecting in Medistik and in the full pharma business. When you mentioned that you will continue growing inorganically, in that regard, which segment and how can you finance the acquisition? We're gonna be focusing mainly in the asset-light division. We're targeting to buy companies that will help us to grow Traxporta or also to reinforce our cross-border business. We have strong balance sheet and we're planning to finance and to have the company on a net debt to EBITDA below 2.5x. How do you imagine the company in five years in terms of financial results, segments, geographic acquisition, et cetera? What business do you believe have a greater growth potential? Well, no doubt, I think that the asset-light business at TRAXION will definitely be one of the main aspects here. We see a double-digit sustainable growth. This, we think is extremely interesting because it will allow us to increase the profitability of our company in a sustainable fashion with a very high cost of goods as well. Now regarding fuel costs, how do you see the [audio distortion]? How does it hit the profitability now since the first quarter of 2022? You mentioned it as an element of margin pressure. Fuel is a key cost for us. It's one of our most important operating costs, of course. We've undergone, ever since the end of this first quarter, very high volatility in price of fuel and petrol in general that prevails up to today. Having said that, and with the perspective of doing this transfer of moving this price to our customers, this is an activity that we've always undertaken. It's It's an activity that's continuously done in TRAXION ever since we were created. The thing is that this volatility is prevailing, and we expect to have a volatility comparable with the idea of this year. Thank you, Antonio. What are the projections for Medistik? Percentage of your own resources and debt percentage. Thank you very much. Well, in order to finance the operation, like Aby said, for the Medistik operation, we will be using both our own resources as well as different credit lines we have available right now. It will be a mix between both parties, and with this we will be integrating, like Rodolfo said, and hopefully by the third quarter we'll be looking at the different figures of the company. Thank you, Wolf. In what horizon does TRAXION see to lead the asset-light business in Traxporta to other LATAM countries or other places around the world? Well, we definitely think that the TRAXION logistics and technology model could reach other countries with greater ease. This is why we expect in the near future to be present in other countries within this division. Thank you, Aby. Now, in the line of a more sustainable line, is there any proposal for trying to become. Well, of having a more electric fleet without affecting the profitability levels? Yeah. We are currently performing some tests. We are doing some analysis of this fleet, of course. We believe and we want to help with the situation. In Mexico, unfortunately, here there's not a completely sustainable development in order to develop this, but we do wanna be one of the main companies, and perhaps the arrowhead, in order to start developing these technologies in Mexico. What is your opinion of the margins in the logistic and technology assets for the future? How do we see the margins? Well, thinking about the past and the future, around maybe 10%, 15% for sure there was not the same division. As we continue to consolidate our businesses and integrating the different, niches where we wanna have, we want to increase the different margins. Right now we say maybe 10%-15% margins. Thank you, Wolf. What would be the identified risks by TRAXION for the expectation of high inflation and of lower economic growth in Mexico perspectives for this and next year? How is the company getting ready to face this? Thank you, Ana Paula. As we've mentioned from the very beginning of this question and session, there is a clear trend and tendency for nearshoring. Mexico has a very high manufacturing capability, very high capacity to replicate in Latin America. It's right down south from one of the main economies around the world, so geographically the country is really well-positioned. We have access to two oceans. We are very competitive in a long list of industries, automotive, aerospace, manufacturing, fabrics, et cetera, which allows Mexico to remain a very appealing investment destination. On the other hand, we have also the internal consumption, which is large, and that's one of the main engines that move our business. Thank you, Antonio. What's your opinion of the valuation of startups focused on logistics like Nuvocargo, Nowports, et cetera? Do you think any disruption is heading our way? These are very interesting valuations. I do certainly think a disruption is heading here. However, TRAXION is very well-positioned right now with Traxporta in order to also access these business levels, models. Thank you, Aby. Now, the cross-border model is something that you foresee within the next flow, first mile, customs clearance, last mile in a B2B and B2C model for the pharma vertical? We're only getting started with this pharma model here. Of course, we're assessing all alternatives that this product and type of service can undertake. We will have a great synergy of products with the cross-border part, as well as the acquisition of Medistik and what we're developing currently. We do think we'll be able to integrate the full chain that this industry needs within our country. Thank you. Thank you. Investment needs. What are your investment needs in the medium term versus capital structure today? Do you need to do an equity offering? Actually, the company's leverage at around 1.6x n et debt to EBITDA, so we still have capacity to grow and to do some acquisitions. We don't see a follow-on in the near future. Thank you, Aby. Logistics and Technology division grew revenue and EBITDA 40% and 60% last year. What is the level of growth rate you are expecting in the next years? For this division, as we already mentioned, we expect to grow more than the other divisions because again, we don't have to invest in heavy assets, so it will be much more easier for us with our technology and our people to grow more. We expect to continue with that double-digit growth for the next future also. How can you make business stakeholders to have adherence to the use of technology developed by TRAXION? Well, today, it's very easy to have adherence to technology that is developed in a series of industries and businesses today. If we look at user percentage of users online, if we see it online, we can see that these trends have increased. People today, even if they're 50, 60 years old, are online users. Everything is owned via mobile phone. Therefore, we believe that the adherence of these digital services is one of the foundations for TRAXION, and it goes focused on that, on the use of these technologies. How much has the competition grown in comparison to you since the pandemic? Well, we find ourselves in an industry that is growing year by year, which is something that benefits all players. However, I believe that TRAXION is positioned with great competitive advantages that have allowed us to offer and to remain higher than the industry, above industry average. Thank you, Aby. If the price of fuel remains as high this year, next year, how do you think customers will react? Well, as we've already mentioned, fuel is definitely a very important operating cost for us. Obviously, we have always translated this increasing prices to our customers, to our agreements, and it's something that's gonna happen, you know? It's not a matter of if it's gonna happen, it's gonna happen, it's just a matter of when. We hope to see in the last quarters of this year to see these trends mentioned. Okay. How do you expect that the technology, which is amazing, to be translated to all different companies of the group? Well, we don't really need to look further because we believe that these apps and services and technologies, our collaborators, they use them, and they use them at all times. Not only our collaborators, but also our customers, they've been greatly benefited by having use of these apps. It is an automatic trust that they have when we develop these technologies, being able to use all of this. Thank you very much. Thank you so much for having us. Asking all of these questions. We have one more here. Regarding Traxporta, are you exclusively focused on the B2C or B2B? And do you use 100% third-party couriers or do you also leverage your own fleet? Yes. Our strategy is mainly to go B2B because that's the strength that TRAXION has in Mexico with more than 1,000 clients. What are the investment needs in the medium term versus capital structure today? Do you need to do an equity offering? I think we already answered this one, but again, as Aby just mentioned before, with our investment needs, we still are below 2x net debt to EBITDA. We can right now fund or raise. We don't have to raise so we can fund our own plans. Right now we're not thinking or focusing on in a follow-on. You will fund the new CapEx. What is the incremental ROIC you are expecting for those investments? As part of our business plans, all of our projects compete between them. Our minimum that we are expecting is 14% in terms of ROIC and 20% in IRR. For new investors, can you remind us what is the lag between the fuel increases and the passthrough to clients in the following months? Let's bear in mind that the pass-through process is an ongoing concern of the company since inception. In fact, this is a standard practice in the whole industry for 60 years ago. The pass-through period depends on how steep the price increase is. If you remember when we had this fuel price increase at the beginning of 2018, it took us almost four months to implement 100% pass-through to clients. In this case, there was an increase in prices, but volatility in oil prices, in global oil prices, not only in fuel prices, prevails. It's a process that is gonna take longer perhaps. We started doing that at the beginning of the second quarter. We are gonna start seeing the results in the third and fourth quarter. What are the synergies that you will be implementing in Medistik regarding processes and other technologies? Well, we see that one of the most important synergies is gonna be the commercial one. Additional to the commercial aspect, we will also have more infrastructure in order to increase the services that are offered to our customers. We have a very robust system that will also contribute to the Medistik operation, and it will also allow us to continue strengthening the financial development, the advancement of Medistik in order for it to have an aggressive growth at a short term. Gracias. How will the transfer. Thank you, Aby. Of cargo, of Traxporta work? What happens to the contracts you already have? Traxporta, as Aby said, we expect Traxporta to represent or to sell at least $200 million in the short term. In our projections, that would be around 5% of total revenues in the short term. All right. Well, thank you very much for all of the questions that you've sent so far. We will now hear some words from our TRAXION CEO, Aby Lijtszain. Thank you so much, everyone, for having joined us today. As you have seen, technological transformation has been a fundamental part for TRAXION's evolution, and it is a key piece for the growth and expansion of our company. New technologies are the foundation for a disruptive advancement for moving items. Two years ago, we migrated to an asset-light model that has had high levels of commercial acceptance and has provided us with outstanding results. This model represents today around 28% of consolidated income. We continue expecting greater relevance for it in our operations, ready to become a bigger part of the business in the medium term. In recent years, we've undergone a change of paradigm in consumption patterns that are here to stay and that have redefined the supply chain. Thanks to our planning, technology, and commercial muscle, we were able to take advantage of these changes and to capitalize on opportunities, something that today has led us to occupy a leading position within the supply chain. We really like businesses that are related to digital apps such as Traxporta and also all of those related to the cross-border business where we have a solid leading position and receive great future expansion potential. Today, TRAXION is a point of reference for the logistics and transportation business in Mexico. We'll continue to move roundly, maintaining our commitment in the creation of value. TRAXION has 10 years of innovating and five years of growing along with the market. I have nothing further than to thank all of our stakeholders for their trust and TRAXION's team, who I have the privilege of leading, because without their efforts, none of this would be possible. It's an honor to have you all on board. Thank you, and see you soon.