Good morning, everyone. Thank you for waiting.

Welcome to the earnings conference call of Allied for the presentation of the first quarter of 2026. My name is Lia Camargo.

I am the Investor Relations Manager. I would like to inform that this event is being recorded and translated simultaneously.

This earnings results are already available. All the participants are listeners in the sessions, then we will start a Q&A session.

You can send the questions through the chat throughout the presentation. Some statements contained in this presentation are related to the business prospects and projections and they are connected to uncertainties that can or not occur.

We are here with Silvio Stagni, he's the President of Allied. We also have Thalita, she's the Financial Director of RI, and I would like to pass the floor over to Silvio.

Thank you, Lívia. Good morning, everyone.

Thank you for your presence. Today, we are going to comment some of our results of the first quarter of 2026 that we published yesterday after the market was closed.

I would like to highlight some of the things that happened in the first quarter, then Thalita will complement with some of the operational and financial details. I would like to start with the big figures of the first quarter.

Once again, we had a very strong quarter even though our revenue dropped 3%, and I will cover more details on the next pages. We had a gross profit 8% above the same quarter last year.

It was heavily impacted by the growth of profit in Brazil as well as retail. We had a 16% higher EBITDA compared to last year.

We had a net income of 63% higher compared to last year connected to a greater EBITDA as well as lower financial expenses. We finished the quarter with R$290 million, and we've tried to keep doing this.

This quarter we delivered R$40 million paid in shareholder remuneration. If we take a look at the consolidated Allied Brazil figure, we had a drop of 3% year-per-year, quarter-per-quarter.

This drop came from our Miami operation. Brazil grows, the Miami operation drops.

The composition of both of them brings a drop of 3%. This is a quarter that we start seeing some problems that we mentioned in our last call, which is the increase of the price of the components that are part of our products.

We have a worldwide demand that is higher than the world capacity. We already had the perspective that this year our cell phone and computer products, they would have an increase in their prices, and that's exactly what we experienced in the first quarter.

I believe that there's a risk for the year of having a smaller or a supplier production, especially when it comes to smaller-price products, but in this first quarter we saw the effect in the increase of price, especially in computers, not so much in cell phones. Focusing on our businesses, and let's get started with distribution.

As I mentioned, Brazil had a very good performance. We grow 2% year-per-year.

We had a drop in our Miami operation. Our Miami operation, just for those of you who don't know, our hub is in Miami with the role of selling to all countries in Latin America with the exception of Brazil.

We have Apple, Motorola, and Xbox. These are the three main products of this operation.

The Miami operation in the first quarter suffered a lot with the shortage of products due to the worldwide success that iPhone 17 had, it resulted in a smaller supply as well as a smaller figure, and this is something that happened only for that period. We are getting back to what we have always seen.

Brazil is growing with this trend of an increase in prices. In this year, we saw some retailers accelerating the purchases to try to build their stocks before the rise in prices that are yet to come.

March was a very strong month for us. To try to understand these figures, let's focus on the smartphone and notebook market in Brazil, and let's take a look at the first quarter this year compared to the first quarter of last year.

When it came to smartphones, which is the first category, the Brazilian market grew 7% year-by-year. The distributors, for many reasons, they decreased 10%.

Allied in the distribution of smartphones, it decreased 7%. We decreased less than the distribution market, which made us gain share in the distribution market.

Now we reached 45% of market share considering the smartphone sales. In laptops, this figures are even stronger.

The market grows 8%, the distributors, overall speaking, they dropped 3.5%, Allied grows 21%. We grow more with the market and much more than the distributors as a consequence of the in the share, and we are reaching almost 19% of laptop shares among the distributors in Brazil, it's a good result.

Now, focusing on retail. Here we have the online and the physical retail.

We're talking the physical one, we're talking about our Samsung stores. We have 97 stores mainly in the southeast region.

We are the main partners of Samsung. What we call as online retail, we have many initiatives, the main ones: our iPhone para Sempre program; our Lobicom store that is plugged in the main marketplaces in Brazil; Trocafy, which is our reconditioned flag; we also have HP store that is managed by us; as well as other initiatives.

Online retail is the connection of all these initiatives. When we look at the results of these verticals, I'll start with the online retail.

We had an excellent first quarter. The program iPhone para Sempre is the main channels to sell iPhone in Brazil.

Quarter-by-quarter, we grow 16% in revenue. This is due to the quality of the channel, the maturity of the channel, as well as the success of iPhone 17 at the world scale, and in Brazil it wasn't different.

Considering the online retail, we also have our software and services sales. This is an area that we have invested a lot and it has grown a lot.

Quarter-by-quarter, we present a growth of 24% when it comes to software, antivirus, and cell phone plans sales. Lastly, our Lobicom store grew a lot, especially when it came to laptops, a growth of 60% in quarter-by-quarter.

Again, we are experimenting a very strong quarter in terms of our online retail. We have Trocafy, which is our main partner for the sales of reconditioned.

This falls short when we compare to more mature markets, such as the US market, for instance, we have the thesis that this market is going to grow significantly. If we take a look at Trocafy from its beginning till now, we have a growth of 164% per year, we are still witnessing a very strong success level considering this initiative.

Remember, Trocafy grasps cell phones once consumers go about trading. They recondition these cell phones, and they sell through the Trocafy store or the Trocafy 3P.

The news for the semester, for this quarter, we already had the fast stores, Samsung, Claro, and Vivo. If the consumer goes to these stores, the clerk is going to offer this possibility of purchase selling the old phone to exchange for a new one.

We are the ones who work behind the scenes. For this quarter, another point, we are the suppliers for Claro Up, which is a Claro's program that will allow the repurchase of the used phones at any time.

We were selected by Claro to be their suppliers in another focal point. When it comes to sales, we have Trocafy in 1P, and we already had Trocafy at 3P connected to Mercado Libre as well as Magazine Luiza.

Now we also have sales channels connected to Shopee, and we are starting to create a new sales channel to subdistribute to reconditioned products, Trocafy starts to create a new category in the Brazilian market. We are always trying to enhance our operational efficiency considering the reduction of costs or the reduction of the sales cycle.

We are still witnessing a very important growth and solid results considering Trocafy. Now, let's focus on physical retail.

Comparing this quarter with the quarter the first quarter of last year, we have 13% less stores with 26% higher average ticket, it results in a 2% higher. We're always working the improving of the quality of the service.

This can be seen in the red bars. Last quarter, we had a revenue connected to 64%, and this in this quarter, we already see R$502 per focal point per month.

If you take a look at the left side, the orange parts are the new stores. We closed some stores because the results were not satisfactory.

We opened new stores, and all the stores that we open are among the best stores of Samsung here in the Brazilian market, which shows that our choice was very successful. The first quarter, we had the launching of Galaxy 26, a very good result, 19% growth in volume if we compare to Galaxy S25, which happened last year.

It reflects what these stores represent for Samsung as well as for the Brazilian market. It's a high-standard store focused on premium products.

We have a high level of accessories, wearables, and also services. It's a store that the consumer that looks for the premium products, they have distinct service, and we are creating this journey for the consumers.

Lastly, we have our profit graphs. Here, we have the historical series from the first quarter of 2021.

Now we have 24.7 net income. If we remove the pandemic's moment, in other words, if we focus on the end of 2021 and so on, this is the quarter with the highest historical profit, with the exception the months that we had some benefits connected to the income tax.

It's a very important quarter. We are very satisfied.

Thank you so much. Now I would like to pass the floor over to Thalita.

Good morning, everyone. Thank you so much for keeping up with us for another results call.

Now, we are going to talk a little bit about the financial highlights. The first quarter of 2026 expressed a great growth.

Our EBITDA grew 16%, and a net income that is even more expressive. Our revenue, we had a Brazil growth of 4% even though we had the retraction of Miami that generated a retraction of 3% in the compound.

Our EBITDA grows on top of two digits, 16%, almost reaching R$59 million, showing our resiliency, growing with responsibility. Our net income, it's a result of the improvements in our sales, the control of the expenses.

As it was mentioned in previous calls since 2023, a strategy as well a consistency in our debt management, working capital, as well as strong financial expenses that results in a net income that is rather resilient and positive in all quarters. This one, it was above compared to the year of 2025, our ending cash around R$300 million, having a R$40 million paid in shareholder remuneration in the quarter that was declared at the end of last year.

Here, it's an overview of all our open channels in terms of revenue and gross profit. On the upper left side, we have the evolution per quarter considering our main four sales channels, which is the physical retail, the digital retail, the internal and external distribution.

We witness a growth in all channels with the exception of Miami. The physical retail, we have same-store sales, it grew 2%, a little bit lower connected to the sales of stores in Paraná and openings in stores in São Paulo.

As Silvio mentioned, they are among the top stores that sell, it shows a good resiliency. Below, we can understand the quality of this growth.

If we compare the first quarter of 2026 against the first quarter of 2025, Miami International, even though we didn't have many sales because of the restriction of demand, we maximized its profit. Brazil's distribution, we saw a growth of 2%.

We were able to grow 0.7 percentage points, keeping this the profit of the three quarters, which is very representative for us. It generates lots of profit in cash, which is the frame in the right.

We reached R$61 million of gross profit coming from the consolidated. In the physical retail that had a big growth, especially in the digital, of 19%, we were able to keep in 25% the gross profit of this operation, showing that was a growth that was rather consistent as well as responsible.

Total, our gross profit was able to grow 1.4 percentage points quarter-by-quarter and in an amount almost 8%, saying that we were able to maximize the opportunities of the first quarter of 2026. Now, focusing at the operational expense that also helps determine this result, Allied is very disciplined in terms of keeping their costs, always try to grow its expense below the inflation, which makes us maximize all the profit obtained in the gross margin and for our EBITDA.

It's the upper frame, the operational by channel. Last year, we had R$109 million, and this quarter, R$110 million.

Below, we talk a little bit about financial results. We were able to have R$2 million of better financial results compared to the first quarter of 2025, R$23 against R$25 million, which is the reflection of all the reduction of our debt and gross debt that we have been doing in a gradative way since 2023.

We had R$600 million and we are around R$425, which is the next slide. Now we're talking about indebtedness.

Allied was able to end a net debt of R$141 million, 0.6 leveraging of net debt in terms of EBITDA. Last year, we improved quarter versus quarter, we had deleveraging of 0.6.

Our cash around R$300 million, which is equivalent to the last quarter, and a little below compared to the fourth quarter, which has to do with seasonality. Our gross debt, R$432 million.

I would like to say that this year the payments have been every semester, July and December. We only had payments of debts, and this increase of R$426 is just debenture that is going to be paid next quarter.

This compound of the profile, it removed the pressure of Allied, also allowed us to optimize the debt. We have Selic plus 2.41% to 2.28%, and the trend is for it to decrease considering that the debenture is being paid every semester.

That was our cash strategy as well as debt structure that has been applied since 2023. We had this shift in June 2025, allowing a reduction of financial costs that we saw in the previous slide as well as a decrease of cash pressure in a scenario that we have a Selic that is dropping.

We're also talking about a high scenario that makes us see this profit of 63%. We have the evolution of working capital.

Allied had a small consumption of R$28 million in the quarter that is seasonal, that has to do with the seasonality, that in the first quarter we're talking about the high seasonality of the last quarter of the year, the same amount of the first quarter of 2025. It was an expected consumption, nothing out of what was expected.

Allied was able to pay interest here, and pay proventos, and we have this R$37 million that is connected to the R$40 million that were paid overall. When we look at the first quarter of 2026 compared to the end of last quarter of last year, Allied still has plenty amount in their cash without having the need of trying to finance for the short-term capital, removing the cost of loans, short-term loans that could have impacted our profit as well.

Now, it's a final summary of this quarter. I believe that the first quarter of 2026 makes the leverages all very solid.

The '26 scenario, we had very positive and negative scenarios. We're talking about macroeconomical leverages as well as institutional events of 2026 that can be positive or negative, such as wars, elections, World Cup.

In 2026, we would like to be able to maximize these positive leverages. This is what is going to make us deliver all quarters to have the 2026 very successful.

The first quarter of 2026 shows that we were able to look for these positive leverages. The revenue is still very solid with Brazil growing for 4%.

In the compound, we have a smaller amount. In our EBITDA, we have an increase of our revenue considering the last quarter, 5.1% with almost R$58 million.

The gross profit, it's very stable, which is the upper left frame. We have a growth in the Brazil's distribution, Miami distribution, and retail with high growth, keeping its profitability, which resulted in a growth in percentage.

This is the greatest percentage of the series that we're seeing here. In consequence, a net income of almost R$25 million, a very interesting amount.

As Silvio mentioned, since the pandemic, this is the greatest operational amount, excluding moments when we declared the tax income. In other words, I think it's a very good beginning for 2026.

It shows that years with many variations in the market, we still have the opportunity for Allied to maximize their results. With this first semester, we were able to show a very good result, that we were able to take advantage of some of these opportunities.

I would like to close this part. Let's move on to Q&As.

Thank you so much, Thalita. We are going to start the Q&A.

Vinícius from Itaú BBA, he sent us some questions. Thank you so much, Vinícius, to keep up with our earnings calls.

The first question is connected to the memory shortage. While it seems to have constrained supply in Miami, it also appears to have accelerated demand in Brazil and benefited the price spread between new and refurbished devices at Trocafy.

How are you viewing this dynamic for the remainder of the year and how are you preparing to navigate this scenario? Silvio, the floor is yours.

Thank you so much, Vinícius. I believe that for this year Brazil has some positive elements even though we are talking about this growth in the memories.

It's a year of World Cup, and World Cup, it's a big booster of to sell televisions. We can see that this market is growing already in the first Q.

Now, we have a smaller dollar rate that is compensating the increase in costs of these components. Brazil has also promoted some additionals in terms of cash for the population through the income tax, Desenrola program.

These are some of the initiatives that boost the market. The Miami market was more disputed because it's a market that competes with the whole world.

The main success of iPhone 17 made that this item was more disputed by other players in the world, and we had less supply. This is not an element that will remain.

We have seen some improvements, it's something that it's not going to keep happening. In Brazil, the retailers, when they understood that the price of the laptops or computers was growing significantly, there was an increase of the retail demand to try to get a better price before the next increase.

When we talk about these unbalances between supply and demand, unbalancing of prices, Allied always is able to navigate and have competitive advantages in these moments. Our role as a distributor, one of our roles is to be a regulator of the market supply, so that's why we always have an inventory that is connected to around R$700 million.

When we talk about these increase in prices, this becomes a competitive advantage, we were able to take advantage of these moments of when the market is rather unbalanced.

Thank you so much, Silvio. Moving on to the next question.

Vinícius says that what called the attention was the Trocafy performance with good results, expansion in margin, and as the business scales, how do you view the trade-off between pursuing faster growth through B2C versus distribution and platform operations, and what you see as the main bottleneck to sustain this pace at Trocafy?

Something that I didn't really mention in the last question, but the increase of new products should be another fomenter of the refurbished products. What we're doing with Trocafy, we are creating this market that we call it refurbished.

We're not talking about used phones. They are phones that go through a lab, we ensure the perfect functioning, a minimal load of battery, we provide them with a warranty of three months.

We certify that this cell phone comes from lawful origin, the refurbished is much more it's safer than a used phone that you purchase from a person individual person. If we take a look at the Brazilian market, nowadays we have 5% in refurbished.

When we look at the US, we have 30% of refurbished products. There's no reason for the refurbished market in the US is greater than in Brazil.

The cell phone impacts much more the pockets of the Brazilians than the American ones, the share of wallet here is much more impactful than over there. We should have a very good year in terms of Trocafy.

This market nowadays, it's much more limited for the supply and then demand. This market is rather limited because we have a hard time trying to capture more cell phones and we are always trying to find products with good quality.

What has value in the refurbished market are products that have a medium or high, we try to grasp in the best scenarios in Brazil connected to this kind of product. We're talking about the Fast Shop, Vivo, and Claro, Samsung.

That's when we can grasp these high or medium-cost products. The demand is greater than our capital, that's why we are working hard to try to advance these elements.

Thank you so much, Silvio. Thalita, a question regarding the impact of the dollar in the Allied business, can you help us with that?

Hello, Felipe. Good morning, thank you for your question.

Here, we can break it down into two when it comes to Allied Brazil and the international Allied. In the Brazil Allied, as Silvio mentioned, the value of the Brazilian currency connected to the dollar helps to mitigate this impact of shortage of memory and inflation, which is very beneficial for this moment.

Now, it really helps to that matter. It says that Allied is not an importer, we purchase from the main suppliers or manufacturers that have their own demand, we already purchase it here.

Yes, there's a impact of the inflation when it comes to this valuing of the real against the dollar, which was very important for the Brazilian market in 2025. It really helped our segment connected to the inflation that could be heavily impacted.

When it comes to Miami Allied, since it's a export corridor, Allied does their operation in dollar, we pay our manufacturers in dollars and we also have the receiving in dollar, which makes remove the pressure and hedge cost or any other impact considering this kind of exchange rate. Another element connected to Allied Miami that it doesn't really need a different capital, it's a neutral cash operation, which avoids prevents Allied from having any kind of negative impact from one company to another in case we have exchange variations.

In this case for Allied, it has been very This drop in dollar has been beneficial because we perceive that this the operation is less impacted because of the increase of the price of the dollar. That's it, thank you.

I believe that we have covered all the questions, I believe that we can wrap up the conference. I'd like to thank for everyone's participation, and we are at your disposal via our contact.

Thank you so much, have a wonderful morning. Thank you.