Good day, ladies and gentlemen, and welcome to the TRAXION 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, Aby Lijtszain. Sir, the floor is yours. Thanks. Good morning, everyone. Welcome again. This quarter, TRAXION posted a mixed set of results. However, 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 TRAXION 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 nearshoring 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 price increases 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 from 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 is 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 details. With this, I end my remarks. Please, Rodolfo, go ahead. Thank you. Good morning, everyone. Welcome. As Aby 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 Logistics and Technology segment, which reported significant advances on its three business lines. Our apps and digital platforms continue to gain market share and outgrow our 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 above 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 show 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. Have a good day. Thank you, Rodo. Hello, everyone. I want to discuss specific financial metrics. As you see, the main impact to our net income together with fuel costs was in the comprehensive financial result. Interest rates increased, which impact the variable portion of our debt. However, and despite such expansion, our cost of debt is very efficient. We have managed to seek and find better debt facilities. Moreover, our overall debt level increased due to the natural growth of business. There is a lower foreign exchange benefit compared to the second quarter of last year, and an effect on the financial instruments that we use to hedge a variable portion of our debt. Moving on the expenses, we posted a 350 basis point efficiency as a percentage of revenue and a 10% decrease in absolute terms. Some of these measures are temporary, but management is seeking ways for some other measures to become long-term and contribute to further efficiency in the future. On the cash flow side, we're very prudent with the working capital cycle, which enhanced operating cash flows by more than 33%. If we look to the balance sheet, we continue to operate with a comfortable cash position and adequate leverage levels. TRAXION has more than MXN 4 billion of available credit facilities that will support our growth plans, both organically and inorganically. Finally, we continue to see strong demand and the CapEx program is running as planned. Despite delays in deliveries of new units and because of the strategic planning we did in 2021, we are now in a much very competitive position as we have taken delivery of fleet to start new operations. Thanks again for your attention. I will now hand over to Tonio. Please, Tonio. Thank you. Hello, everyone. I just wanna discuss some highlights in more detail. Revenue showed a very strong expansion, mainly driven by three actions. First, an intensive and successful commercial activity, mainly in the Logistics and Technology segment, especially in digital platforms, which continue to gain market share and grow well above competition. Second, a very strong demand in the Mobility of People business, which drove organic growth and which keeps presenting us with very attractive and profitable opportunities. And third, an effective shift in cargo to more specialized services such as refrigerated and petrochemicals with more profitable economics, which boosted sales and revenue per kilometer in this quarter. Please bear in mind that on the second quarter of last year, we won the People Mobility segment with a significant over-demand. This quarter, we operated under normal demand conditions. The growth in this segment is truly outstanding when compared to the same period of 2021. Pre-operating costs have impacted the labor line together with the natural growth of the business. We are preparing our platform to operate the pharma vertical, and we need to bolster our capabilities to properly serve our clients. Moving on, TRAXION continues to advance and make significant progress on the ESG front. There are two very important milestones this quarter. The first is that in June, our EcoVadis assessment was published. The company was awarded silver medal for its performance, and TRAXION is within the top 25 percentile. EcoVadis analyzes the sustainability metrics of suppliers of more than 90,000 companies worldwide based on four main elements, environmental, ethics, labor practices, and sustainable procurement. The second milestone is that TRAXION was added to the S&P/BMV Total Mexico ESG Index, which places the company among the most prestigious in terms of ESG efforts. The new composition of such index includes 30 companies with a goal to boost the exposure of such good rated corporations to international markets. TRAXION is one of just four companies of its sector that are a part of the index. Well, thanks for your attention. With this, I wrap up my observations. I will now open the floor to Q&A. Ladies and gentlemen, the floor is now open for questions. If you have any questions or comments, please press star one on your phone at this time. We ask that while posing your question, you please pick up your handset if listening on speakerphone to provide optimum sound quality. Please hold while we poll for questions. Your first question for today is coming from Luis Yance. Please announce your affiliation, then pose your question. Hi, this is Luis Yance from Compass. Hi, guys. Thanks for taking my questions and congrats again on, you know, the accelerated top-line growth. I think it's great to see companies like yours, you know, doing that in this environment. I guess my question is on the missing part, which would be the margins, right? I understand, and you mentioned it, Aby, that you're in the process of passing on those increases to clients. I was wondering if you could give us a sense in terms of, I don't know, what percentage of your contracts or your sales have been already successfully adjusted and we are gonna see the benefits and perhaps the remaining portion, whether we'll see it, all of it in the fourth quarter or something gets passed on to it. If you can give us a sense on the timing, that would be great. I guess a related question to that is, you know, are you still comfortable thinking that, you know, the 19% EBITDA margins that you had as guidance are still achievable this year? Or given what we've seen so far in the first half, perhaps if you could give us kind of like a more likely range. I guess my last question on the margin side would be, we've seen a little bit more pressure on cargo margins relative to passenger. If you could explain why that is, would be great. Thanks. Thanks, Luis. This is Tonio. Good morning. Thanks for your questions. Well, I guess that the main issue here with fuel prices is that we touched base with 100% of our clients in the second quarter, and we have achieved a 40% pass-through rate on the quarter that has not been fully reflected in such quarter. We expect those pass-throughs to start to kick in revenues and higher prices in the third and fourth quarters. In your second question, regarding the 19% margin, uncertainty prevails. For us, it's too early to reassess the margin. However, higher revenues with temporary margin pressures are a strong possibility. We still not have enough elements to revise our estimates. Hi, Luis. How are you? This is Wolf. Regarding your last question about the margins in the cargo side, this is mainly because of the kilometers volume that we had, usually, on that line of the business. If you see the mobility of people, in comparison with the cargo side, the cargo side will usually have more kilometers volume per unit. This is why the fuel cost it's more deeper in this side, until we have the price increase in the rates to the market. This is why this impact is a little bit deeper in this side. Great. Thanks a lot for those detailed answers. That's super helpful. Then my last question, if I may, on M&A. You know, could you give us an update on the Medistik in terms of, you know, the timing of closing the transaction and, I guess, the likely contribution of either this year once it's closed, but more importantly, next year, based on what you're seeing so far. I was wondering if with the uncertainty that prevails right now, what can we expect from you on the M&A space for the rest of the year? Are you gonna take a bit of a more cautious view there? Also related to CapEx, I guess, whether the MXN 3 billion you're still looking to spend or perhaps take a bit of a pause there. Thanks. Thank you, Luis. Yes, regarding the M&A side, we just announced in the previous quarter, we're looking to close the deal in this third quarter. By the time that we can close it, obviously, we will add it to our platform, to our numbers. After that, in terms of the investment that we have planned in this year, until now, we have experienced a strong demand, as Aby just mentioned. Because of the nearshoring cross-border and all of the activity that we're still looking and we're having in the company, we think we can execute our CapEx program for this year, and mainly because we have profitable opportunities in our long-term contract. This is why we wanna keep it that way. Great. Thanks a lot, Wolf, and thank you, guys, for the questions. Thank you. Your next question is coming from Alejandro De michelis. Please announce your affiliation, then pose your question. Yes. Good morning, guys. Alejandro De michelis from Nau Securities. Thank you for taking my question. Just as a follow-up from what Luis asked, could you please tell us how you see margins, EBITDA margins, I mean, for the second half of the year? If you could give us kind of, you know, a bit of a range on how you see those kind of numbers. And then the second question is, given the increasing interest rates and the higher interest costs that you're seeing, could you see a situation where you prioritize a debt reduction over lower growth over the coming quarters? Hi, Alex. Thank you for your question. We are seeing temporary margin pressures right now, given the higher cost of fuel. However, we are not sure of our assessment as of today in terms of margin. There could be a temporary, as you have seen, temporary impact of 200 basis points, but that could be temporary. Hi, Alex. Sorry. Just to clarify. That the second half of the year should be looking similar to what we have seen so far in the second quarter, or are you thinking you could improve from there? There could be room for improvement, but unfortunately, as of today, we are not sure. If you see the margins on the first half of the year, they are not so far from the 19% that we guided in February. That's why we don't want to assess anything or say something that we are not sure as of today. Okay. Thank you. Hi, Alex. This is Wolf. How are you? Regarding to your second question, in terms of paying maybe debt, I think our main growth, as you can also see, and we will talking to the market also, we're looking more in the asset-light, in the asset-light base business. I think if you look also to the previous years, we were deleveraging the company at some point. In this particular year, we will look for different opportunities with the profitability that we are looking for. We're expecting a lower CapEx, maybe in the next future, but for now, we'll keep as the guidance that we made in the previous months. For sure, maybe in the next future, we were looking more to grow the company in the asset-light base business. Okay. Thank you. You're welcome. Your next question for today is coming from Martin Lara. Please announce your affiliation, then pose your question. Good morning. This is Martin Lara from Miranda Global Research. Thank you for the call. I have two questions. The first one is, where do you see the average revenue per kilometer in mobility of cargo and mobility of personnel in the next few quarters? The second one is, where do you see the growth of the last mile fleet and the ware housing space in the logistics and technology business also during the rest of the year? Hi, Martin. This is Tonio. I'll answer the second one first. Please. Regarding the last mile fleet, we don't see the last mile fleet growing. Actually, if you take a look at previous quarters, you're gonna see that such fleet has not grown much. What we are doing is we are in a process of somewhat rebalancing it. Regarding the 3PL space, when we IPO-ed the company in 2017, we said that we plan to grow at a rate of 50,000 sq m per year. Now, as you see, we have a very strong commercial strategy. We're gaining market share in such a business. We are planning to grow, as well, of course, more than 50,000 sq m per year. It is hard to tell because we are becoming more efficient not only in area but also in space. We are taking advantage of the volume of the building, not only the area. It is hard to tell, but you can expect between 50,000 sq m and 70,000 sq m per year, if nothing else happens. Hi, Martin. How are you? This is Rodolfo. Regarding your question about the revenue per kilometer in the mobility of cargo, we're expecting around MXN 24.5 per km in the second semester of 2022. We're pushing the increase of prices, so we expect to be around that number. That's for mobility of cargo, right? Yes. Okay. Any mobility of personnel? In the mobility of personnel, we're thinking around MXN 18.5 per km-MXN 19 per km. Okay. Thank you very much. Okay. Your next question is coming from Filipe Nielsen. Please announce your affiliation, then pose your question. Hi, Ron. It's Filipe Nielsen from Citibank, speaking. Thanks for taking my question. I have two questions on my side. One is regarding theft and stolen cargo and all that stuff, those parts. Have you experienced any higher than normal rates in theft in your business? Has this led to any reduction or discontinuation of services in some regions? That's the first one. The second question is regarding tariffs. As you mentioned, you touched base with 100% of clients and some of the contracts are still to be included into results. Looking into demand, like, have you seen any elasticity in terms of increasing demand, increasing tariffs, sorry, playing in reducing demand going forward? Yeah. Hi, how are you? This is Rodolfo. Regarding the stolen cargo in our country, we haven't seen any increase in this area. We have a very good processes that we monitor all the way from all the cargo sectors. Of course, there are some issues in our country, but this is not a main concern for us. We handle it really good. Regarding the volume and the increase in tariffs from the rest of the clients, we see the volume really good. We haven't seen any slowing of the volume. I think even though we have been asked by a lot of clients to increase our volume, this has helped us make the push for the increase of prices. Of course, you know, the pass-through of the fuel, it takes some time. We know how to do it. We have been doing it for a lot of years. We expect to fulfill this in a near future. We haven't seen any slowing of the volume in Mexico. Okay. Thank you. Thank you very much for the answers. Your next question for today is coming from Rodrigo Salazar. Please announce your affiliation, then pose your question. Hi. Thank you for the call. Just two questions really fast. Could you explain why the increase in labor costs were that high? Also if you could explain the increase in leases you have this quarter. Thank you. Hi, Rodrigo, this is Tonio. Could you please repeat the second question? Yeah. The second is about the leases that it seems to be much higher sequentially and year- over- year. There's a special reason or something you can explain there. Thank you. Sorry, did you say leases? Are you referring to leases? Leases, yeah. Hi, Rodrigo, this is Wolf Silverstein. How are you? Your first question about the labor cost, it's mainly because of the new operations that we're planning to put in place, between the third quarter and also, the last part of the year. This is mainly the main impact in this side, and what we're growing also for this year. Regarding your second question about the leases increase, this is mainly also because of the new operations. We acquire also, more units to operate this year and also, the warehousing, plans that we're planning to put in operations for the third quarter. This is what it's making, like, the hike here in the leases also. This is part of the combination in the growing of the business. Thank you. You're welcome. We do have a follow-up question coming from Luis Yance. Luis, your line is live. Thank you. Hi, guys, again. Just a follow-up question on what you said, Tonio, about the fuel price increases. You mentioned that, you know, you've achieved around 40% of the contract you already got the pass-through done. It's just a matter of time until we see it in financials. Hopefully we'll get to see some of that in the third quarter. I was wondering about the other 60%. Is it fair to assume that most of it you will get into an agreement this quarter and therefore fourth quarter is when we should start seeing the full benefit of all those price increases, you know, assuming oil prices obviously stay constant? Some of that will remain and perhaps fourth quarter some sort of improvement, and then first quarter is when we will see next year, when we will see kind of that, you know, the full benefit of your contract? That would be my first question. Hi, Luis. Thanks. Yes, indeed, we've been working with this 40% of contracts. You should start seeing those pass-throughs in the third quarter. Regarding the 60% remaining, obviously the ball is rolling with clients, and you should see progressively increases in pass-throughs on a month-by-month basis. We expect, obviously, and we are working very hard and very fast as we can to make those pass-throughs be reflected at least between now and December. Excellent. Another follow-up on the logistics side. I mean, if you guys could give us a sense of the growth you guys are expecting in every segment within logistics, you know, 'cause we saw big growth on the tech applications, a little bit less so on the last mile. Just to get a sense on the growth you're expecting on all three, 3PL, last mile and tech app. Roughly speaking, how much of your sales within that segment represent each? Perhaps touch base a little bit more on the last mile side, where it's growing a little bit less. I mean, we're seeing some companies in the U.S. suggesting, you know, e-commerce might be slowing down a bit, still growing, but slowing down a bit. Just wondering if you guys are hearing the same thing here in Mexico or given the low penetration, you know, we might diverge in terms of trends versus what we might be seeing in the U.S. Thanks. Hi, Luis. Speaking about how can be like the behavior of each niche in the logistic division, remember that the digital apps there are maybe put in place like a year and a half ago. Besides that, this logistic division is growing very fast. If we're talking about maybe how can they be in the future, we expect for this year maybe that the last mile could be around 40% of our revenues. In terms of the 3PL could be something around 30%, and also the remaining 10% will be between the digital apps. This, you can see how this is growing. It was zero, two years ago, and right now it could be 30% of this division in terms of revenues. We're trying to grow as fast as we can also. We have a lot of market to capture also in this division. This is how we're looking at this line of the business. As you can see, you should see also double-digit growth continue growing in this whole division in terms of the logistics side. Hi, Luis. Regarding your question about the last mile and e-commerce, we still see in Mexico a lot of opportunities and this segment is growing good. Not as fast. The rates of growth is not as fast as 2020 and 2021. As we know, those years grow really hard. We still see a lot of opportunities. We've seen a lot of growth, but not as high rates as it grow in the last two years. Great. Thanks a lot. That was great detail, guys. Congrats again, and thanks for taking my questions. Thank you. Once again, if there are any remaining questions or comments, please press star one on your phone at this time. There are no questions in queue. I would like to turn the floor back over to Aby for any closing comments. Thank you. We continue to see strong demand in our three segments, and we'll keep capitalizing on them. The market presents us, especially those that arise from nearshoring trend, and from cross-border activities. We have a leadership position. TRAXION continues to be the industry benchmark and to operate with a strong balance sheet and cash position that will enable the company to move forward. As always, we'll keep you posted on the progress of the company. Thanks very much for your attention today. Have an excellent week. Thank you, ladies and gentlemen. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation.