Sequoia Logistica e Transportes SA

Sequoia Logistica e Transportes SA

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Q2 FY2026 · Earnings Call TranscriptAugust 17, 2026

Operator

Ladies and gentlemen, welcome to the videoconference of results for the Sequoia Logistics with reference to the second semester of the second quarter of 2026, when the 1st of April to the 30th of June. Today we have with us, Senhor Leopoldo Bruggen, director president and director of investor relations.

Inform that this presentation is being recorded, and we have simultaneous translation. The translation is available on the button "Interpretation" for those who are accompanying the conference in English.

Also possible to silence the original audio touching on the option "Mute Original Audio." Clarify that any declarations made during this teleconference relative to the perspectives of business of Sequoia, operational goals, and financial goals constitute projections of the directors of the company and therefore may or may not come to pass.

People should understand that macroeconomic and political factors may affect the future performance of the company and lead to results which are materially different than those announced here. The company does not assume any obligation to update these projections due to new information or future events.

To initiate the presentation of the results of the second quarter of 2026, I now pass the microphone to Mr. Leopoldo Bruggen.

Leopoldo Bruggen

Thank you all for your presence. It's a pleasure to present the results of the second quarter of 2026.

Thank you for the efforts of the in- controlling team, control ship- ship team, as well as the audit- internal auditors to deliver this ITR on time. The numbers of the quarter demonstrate the evolution of the company and its agenda of operational focus and di- and disciplined cash discipline, complementing the restructure the financing restructuring initiated in 2023.

We have grown with responsibility, amplifi- amplifying sign- significantly our profitability. We have generated opera- cash positive operating cash, and we have concentrated our business on logistics and banking objects and the ex- expansion of our B2B business.

The financial data presented here were extracted from the in- quarterly information of the 30th of June, 2026, submitted to revision, limited re- revision by the independent auditors. On slide number 2, we present the operational focus of the company, which is to per- to remain the largest player in banking logistics and grow in the B2B.

In the quarter, we did 21.2 million deliveries of banking objects, maintaining volumes stable volumes, and reinforcing our position of leadership in that market. Our network of deliverers, of franchise networks, reaches 1,632 cities through 412 franchisees deliver- franchise deliverers, covering entire national territory.

The network counts f- more than 5,000 deliverers who are are contracted by the franchisees, with continuous expansion to elevate the quality of service. We are We attend 152 clients, including the largest banks, fintechs, payment companies, and companies of benefit and benefits companies, a relationship higher than 12 years with the largest banks and the largest private banks in the country.

This translates into approximately 60% participation in the market in the private couriers and logistics of bank objects, based on the estimates of the internal estimates of the company. We inaugurated a new operating unit for logistics of payment machines.

This unit is located in Barueri and counts with a 900 square meters of space, 750 positions pallet positions, and 2 docks. This unit, together with our network of deliverers, permits the company to attend the demands of our clients and of the manufacturers of these machines, of these payment machines.

The scale, capillarity, and relations- long-term relationship continues to be the pillars of our business. On the next slide, number 3, we present the principal indicator financial indicators consolidated for the quarter, under the logic of growth responsible growth and focus on cash.

The net revenue of 137 million reais, growth of 7.8% in relation to the first quarter of 2026. The net profit was 25.4 million, an ad- of advance of 176% in relation to the previous quarter, with a gross margin of 18.4%.

The adjusted EBITDA reached 30.7 million, a growth of 96.8% with an adjusted margin an adjusted margin of 22.3%. For the half, the first half, the cash generation reached 29.3 million reais.

This performance reflects the improvement in productivity, closing of the B2C operation in April, which happened in April of 2026, and the continuity of the management and the management of the legacy liabilities. For the quarter, we received 28.3 million from the sale of the assets of the B2C, together with a total of $7.5 million, being recognized in accounting a gain of 14.8 million.

On the next slide, slide number 4, we present the demonstration of the re- of the summarized results. The net revenue grew to 100 from 127 million reais in the first quarter to 137 million in the second quarter, while the costs of our services offered fell from 118 million to 112 million reais, raising the margin the gross the gross margin from 7.2 to 18.4%.

Productivity has been increasing every month, permitting increase increases in the improvements in this margin. The accounting losses was reduced from 77.1 million in the first quarter to 7.2 million in the second quarter, an im- an improvement of 90.6%.

This result still contemplates financial expenses of 21.1 million, depreciation and amortization of 1 15.6, a goodwill of 6 15.6 million, and legal provisions of 4 million reais, provisions for receivables of 0.8 million, and rescissions for the restructuring of 2.1 million. The Send with the largest part of these last ones have no cash effect, no immediate cash effect.

Our team dedicated to the of this of this substantial in the civil and work and labor-related cases, our dedicated legal team is working on that, for the operational improvements with the exit from the B2C and the management of this legacy past liability. The EBITDA adjusted EBITDA went from 30.7 with a margin of 22.3%, was positive in 30 million with a margin of 22.3.

We show the the comp- the composition of the revenue by business line. The banking logistics registered 137 million, growth of 7.9% in relation to the first quarter of '26.

The performance was sustained by 7.2 million deliveries per month, approximately 60% of market share among private couriers, and increase a gradual gradual increase in the average ticket, with volumes stable from quarter to quarter. Beyond the improvement in margins, we inaugurated a center for the operations of banking machines of credit card machines, and we're doing an internal machine work for innovation technological imp- innovation for logistics of these objects.

On the B2B, the revenue was 19.7 million, a growth of point 57.9% with more than 400 pars- partners registered and an advance of contracts of full truckload to large industries, and an operation of milk run op- operations between hubs and marketplaces. The B2B-- B2C operation was closed in April of 2026, with the sale of the Megasorter, Damon Megasorter for $7.5 million, with the cession of the contract of of leasing contracts and distribution program of the voluntary re- retirement of workers.

On the next slide, number 6, we present the reconciliation of the adjusted EBITDA to give total transport transparency about the quality of the results. Starting from a an accounting EBITDA of 29.5 million positive, and adjusting the effects of the of the operation of the recurring operations that do not reflect recurring operations, the negative EBITDA of B2C discont- discontinued and the provisions for legal and labor cases, and losses in accounts receivable, the accounting gain from the sale of the assets of B2C, and the in- undeductible expenses and adjusting accounting adjustments beyond the rescissions from the restructuring.

At this way In this way, we arrived at an adjusted EBITDA of 30.7 million reais, growth of 96.8% in relation to the first quarter of 2026, a margin of 22-- 22.3%. On the next slide, number 7, we detail the management of our cash, which is our priority, our number one priority.

For the quarter, we have generated operating cash of 19.1 million, the same with the negative impact of approximately 3 million reais of the operation to B2C, which was closed in April of 2026. We've maintained our operational suppliers up to date without any late payments, valu- valuing the franchisees in our network responsible for almost 400,000 deliveries per day.

We received 28.3 million in the quarter from the sale of the assets of the B2C, together with $7.5 million, which was leaving us with approximately 10 million reais to receive in the third quarter, of receivables for the third quarter. We have also destined 24.2 million for the reduction of of legacy liabilities, including 2.5 million for the liquidation of the obligations, short-term obligations from the plan of extrajudicial extrajudicial recov- recovery, and 5.6 million ref- with reference to the first payment on the transaction with PGFN.

In the first half of 2026, generation of operating cash added up to 29.3 million, and anticipations from the banking clients which were amortized have been are being recomposed, maintaining virtually sta- stable our financial flows, and focusing on the reduction of the legacy of the labor cost legacy, civil and and tax losses. In the next slide, we present the struct- the capital structure and the debt structure.

The cash closed the quarter at 46.2 million, before 30.9 million in the first quarter of 2026, reflecting the sale of the assets of B2C and the generation of operating cash. The net debt was reduced from 288 9.9 million was reduced to 280.9.

The net net equity remained negative in 252 million reais, presents an improvement in relation to the first quarter of '26, reflecting the continuity of the restructuring in underway, currently underway. In the first half of 2026, there was an increase in the capital of the company of 566 million reais through the conversion, mandatory conversion of debentures into shares.

The accounts receivable grew with the expansion of the B2B portfolio, while loans and financing remain in a process of repa- of renegotiation with payments long-term payments concentrated in 2029 and 2032. We are continuing to advance with the negotiation with the tax negotiations under the and the management of these contingencies.

On the next slide, number 9, we resume the restruct- the financial restructuring and its effects on the struct- capital structure of the company. Three fronts reduced our debt and sustained the continu- the operational continuity.

First, the extrajudicial recovery plan, which was approved judicially in March of 2025, with the adhesion of creditors of approximately 54% of the credits covered. This generated a reduction of 148 million in liabilities.

In the second quarter of '26, 2.5 million were liquidated the last obligations the short-term obligations, leaving only the parcels parcels for the payments for 2030 to 2033. Secondly, the transaction with the PGFN signed in April of 2026 reduced by 82% the tax liabilities, federal tax liabilities of approximately 631 million reais to 112 million, to be paid in 15 months in cash or through a a a note authorized by third parties.

The first part- parcel payment of 5.6 million was paid in the second quarter of '26, reducing the balance to 107.1 million. Third, capitalization through conversion through obligatory conversion of debentures into ac- into shares, the increases of the capital 566 million in the in the first half of 2026, and the and the remaining debts which are will come due only in 2029 to 2032, with a short-term amount being re- renegotiated for the third quarter of 2026.

These three fronts combined with the exit of the bu- business lines which were loo- which were money-losing, in the case of the sale of the B2C, should permit the company, in the expectation of our management, to generate operational cash to amortize this legacy and recover the growth in a rational way. On the next slide, number 10, we present the perspectives anchored in the core business and in the disci- cash discipline.

Our strategy has four pillars: first, the concentration in the core business, logistics of banking objects, approximately 60% market share, and a selective growth in B2B, which advanced 57.9% in the quarter. Secondly, monetizing the assets of the B2C assets, with 28.3 million received in 20- in the second quarter of '26, and approximately 10 million to be paid in this third quarter.

Thirdly, investment in technology, including routerization, the use of artificial intelligence in the for the proving of deliveries, and a data lake which will generate each payment in real time. Fourth, the expansion of our own network with with franchisee deliveries, and the increase in the volume of POS machines.

We have now reached the end of our presentation. We close the second quarter of 2026 with a with important advances: growth in revenue, strong expansion in our gross gross margin, EBITDA adjusted EBITDA of 30.7 million, cash generation operational cash generation positive cash generation, and the continuity of the reduction of the liabilities from the past.

We continue as a reference in logistics for banking objects in Brazil, with national scale, relationships, long-term relationships, and an operational platform which is now more focused than ever, lighter, and more disciplined in terms of cash. We reinforce that this presentation this refers to declarations which are subject to risks and uncertainties, is informative in nature, and that the complete information, including the ITR on the 30th of June of 2026, are available on the sites of the CVM and on the Investors Relations sites of the company.

We remember that the management metrics which are not count- accounting, as in EBITDA EBITDA adjusted EBITDA, generation of operating cash, and legacy liabilities are not objects of revision or audit, and should not be considered iso- in isolated way, in substitution of accounting information that may be not be comparable to the metrics announced by the by other companies. With this, we conclude the presentation of the results of the second quarter 2026.

Thank you for your participation, and we hand the word back to our moderator.

Operator

We here close the videoconference results of Sequoia. In case of any doubts, the Relation Investor Team is available through the email [email protected].

Thank you for our participation, and we desire you a good afternoon. We wish you a good afternoon.