Good afternoon. For those who need the simultaneous translation, you can press the globe icon on the lower right side of your Zoom screen and then choose to enter English room.

After that, select mute original audio. Good afternoon to all, this is Ian Nunes speaking, IR manager of Tegma.

Welcome to the conference call to discuss the earnings concerning the fourth quarter of 2025. This conference call is being recorded and the replay may be accessed in the company's website.

We inform you that all participants will be in a listen-only mode during the presentation, after which we will have the Q&A session when further instructions to participate will be provided. For those listening to the call in English, we have in the chat the link to the presentation in English.

Here on Zoom, we will be showing only the version in Portuguese. I'd like now to give the floor to Nivaldo Tuba, CEO of Tegma, who will begin the presentation.

Nivaldo, you may proceed.

Let's start. Good afternoon everyone.

This is Nivaldo Tuba speaking, CEO of Tegma. On behalf of the entire company, I thank you once again for participating in our earnings conference call.

With me here are Ramon Perez, our CFO and IRO, as well as Ian Nunes, our Investor Relations Executive Manager. As usual, let's start our presentation on slide 2, where you, ladies and gentlemen, will find our disclaimer regarding our forward-looking statements.

Moving on to slide 3, here we have the market outlook. Firstly, domestic vehicle sales, which, after 2 years of double-digit growth in 2023 and 2024, slowed down at the end of 2025 and ended the year with growth of 2.6%.

Although the outlook remains cautious, with the main associations forecasting growth of around 3% for 2026, daily sales in the first 2 months of the year were encouraging, growing by around 9%. It is worth noting that in 2026, the market will have around 70 new models, 7-0.

In other words, another important stimulus for fleet renewal. Another important issue at the end of 2025 was the incident at Toyota's engine factory, which caused the automaker's sales to fall 40% in the fourth quarter of 2025 vis-a-vis the previous year.

The automaker has adapted its production in various ways, and its sales in the first 2 months of 2026 are already showing a rebound, they're regaining 6th, sixth place in the sales ranking. I would also like to point out that there are already 14 Chinese automakers operating in the country, whose sales growth has been exponential in just a few months, rising 45% between July and December.

Chinese brands already account for 13% of licensing of vehicles in Brazil, and some of them have already started local production. All this movement has required many adjustments to our operations, as well as investments to deal with unusual complexities in this business.

Now on slide 4, let's look at the main indicators for the automotive market in Q4 2025, such as domestic sales, which, as I mentioned, were affected by high interest rates and slowed growth to just 1%. Below on the left, local production remained fairly stable at 662,000 units, down 1% year-on-year.

As for exports, exports are still very dependent on purchases from Argentina, they suffered from reduced demand from that country and declined by 17%. Slide 5 addresses the operating indicators for the automotive logistics division.

It is worth noting that the number of vehicles transported, both domestically and exported, fell by 6.6% in the quarter, reflecting a market share of 22.7%, i.e., 1.3 percentage point lower. This performance is a consequence of the sharp drop in Toyota's sales and the decline of other key clients.

Fortunately, average distance travelled was 1,154 km, 6% higher, due to sales growth in regions outside the South and Southeast. After these highlights, I will now give the floor to our CFO, Ramon Perez, who will talk about our results, cash flow, and other indicators.

Ramon?

Good afternoon, everyone. As can be seen in the top chart, net revenue for the fourth quarter of 2025 was R$572 million, a 2% decrease compared to the same quarter of the previous year, due to the reduction in number of vehicles transported, reduction in vehicle transfer services between yards, and less logistics services.

In the bottom chart, the division's EBITDA margin in Q4 was 13.6%, down 7 percentage points. It was atypically affected by a number of factors, which we attempted to detail in our earnings release, including a drop in Toyota's sales, an increase in ICMS tax collection, and 1 month-long halt in transportation at Tubarão, which led to idleness in 1 month and extra costs in the following month.

The Integrated Logistics Division posted net revenue of R$38 million, down 6% year-on-year, due to the partial loss of a major chemical transportation contract, as announced in Q2 2025, but this has been partially offset by new contracts and the expansion of services to existing customers. Similarly, due to the reduction in revenue and lower dilution of fixed costs, EBITDA margin declined 5.2 percentage points to 8.8%.

The division is collecting more ICMS, which is the state value added tax, due to a change in the collection framework, and there were additional maintenance costs at the division's main chemicals warehouse. With regard to GDL, net revenue for the quarter was R$61 million, lower than in Q4 2024, on account of a decline in the volume of bonded warehousing services.

This reason, coupled with higher rental costs for new leased areas, explains the 30% drop in net income and net margin, which was reduced to 14.3% in the quarter, as shown in the bottom left chart. GDL maintained its dividend payout history, distributing almost 75% of its net income in 2025, or R$49 million.

Now talking about Tegma's consolidated results, we recorded net revenue of R$610 million in the fourth quarter 2025, down 2% year-on-year. Despite this, in 2025, this indicator closed at R$2.2 billion, 6% compared to 2024, by virtue of a positive dynamics observed in the first half of the year.

Regarding consolidated EBITDA, Tegma registered a decline, both in nominal terms and in terms of margin, in the quarter and in the full year, due to the worse operating results that I previously described. Considering the reduction in equity income, we posted a 39% decline in net income, which closed at R$52 million.

Net income for the full year reached R$243 million, and despite the reduction compared to 2024, still represented a double-digit net margin of 11%. Moving on to slide 10.

The chart on the left shows the cash-to-cash cycle at the end of the Q4, which was 41 days, remaining flat with Q4 2024. CAPEX for the quarter was R$73 million, due to the acquisition of a plot of land in Camaçari, in the amount of R$40 million, improvements to land, totaling R$17 million, and the acquisition of semi-trucks for the logistics operation of newly registered vehicles, in the amount of R$7 million.

CAPEX for full-year 2025 totaled R$112 million, mainly due to the acquisition of the plot of land and improvements to yards to handle the increase in imports of vehicles from China. Due to the reduction in the company's operating income and the significant CAPEX mentioned, free cash flow for the fourth quarter of 2025 was a negative R$21 million.

In the full year 2025, however, free cash flow was positive of R$128 million, down from R$170 million in 2024. With regard to capital structure, Tegma distributed a record amount of dividends and interest on equity in 2025, totaling R$292 million.

Given that this was an atypical distribution, we cannot promise the same level of distribution in the coming years. Even after CAPEX and large dividends paid, the company continues to have a practically deleveraged capital structure, with net debt standing at only R$12 million in December 2025.

As for gross debt, the company's gross debt reached R$126 million, at an average cost of CDI plus 1.34%, and 70% of the debt will be maturing by 2027. As for profitability indicators, on the back of all the effects mentioned before, both the company's ROIC and the ROE were lower for the fourth quarter of 2025, with return on invested capital for Q4 at 31.2% and return on equity of 25.5%.

On the right, we show the history of dividends and interest on equity paid. As we mentioned, 2025 was a record year, resulting in a payout of 110% on an accrual basis.

The dividend yield on the distribution over the last 12 months was 12.5%. On the last slide, as shown in the top chart, we see our share performance compared to the Ibovespa index and to the Small Caps index, taking last year's closing price as base 0.

We believe that we can explain this underperformance because these 2 indexes include stocks linked to sectors and industries that are more trended to foreign investors, and these have recorded above-average performance in the beginning of the year. With this, I would like to thank everyone once again for your participation and interest in the company, and I will now begin the Q&A session.

Thank you, Ramon. We will now start the Q&A session for investors and analysts.

If you would like to ask a question, please press the raise hand button. If your question has been answered, you can leave the queue by clicking Lower Hand.

If you would like to ask a question in writing, please type your question in the Q&A field at the bottom of the screen. We have a question from Victor Blasquez with Prumo Capital.

I think that Victor sent a written question, which I will read. Good afternoon, Nivaldo, Ramon, Ian, and the whole team.

If you can comment on how you assess the performance of vehicle sales in the first 2 months of 2026. Nivaldo, please?

Thank you, Victor. Let me try to explain.

Speaking about the first 2 months of 2026, sales performed better, up 9% in daily sales, which is the expectation we had for 2026, which is 3%, higher than what we expected for 2026. This is an expectation by all regulatory of the automotive industry.

We can say that the biggest losers of market share in the yearly comparison were GM, Nissan, and Toyota. To explain Toyota, obviously because that problem that they had in their engine factory due to a storm.

The groups that gained more market share were BYD, Volkswagen, and Renault. BYD and Great Wall, the 2 Chinese automakers, the 2 biggest operating in Brazil.

Another highlight would be the other Chinese entrants: Geely, Omoda, Jaecoo, and GAC. They account for 2% to 2.3% market share.

More important point is that exports posted a decline in this period, they dropped 28%, a substantial drop, primarily because of Argentina. With this reduction in exports, consolidated production in the first 2 months also posted a drop of approximately 8%.

Thank you, Nivaldo. There is a second written question from Victor Demier with Vinci Partners.

Good afternoon, gentlemen, congratulations on the results. The company acquired another plot of land in Camaçari, Bahia, this quarter.

Can we expect more CAPEX for this operation? In addition, could you give us more color on the impact of these yards on the results?

Ramon?

Good afternoon, thank you for the question. Indeed, we acquired this plot of land for R$40 million last year, and it was a new plot of land of approximately R$4 million.

We made this investment following the demand from an important customer. It was important for us to position ourselves to attend that client.

We don't expect any extra CAPEX, at least not of this magnitude, not in the short to medium term, unless a new opportunity arises. The rationale for this acquisition was to be close to that automaker, like I said, and that automaker is gaining more relevance in domestic sales.

In forecasts, they intend to produce 150,000 vehicles this year, and they intend to produce up to 600,000 vehicles by 2030. As regards the impact of these yards on the results, well, what I can tell you, we don't open publicly and disclose the profitability of every project and every customer, but this is within the parameters of the company, ensuring return on capital invested, and the capital that we are investing, we expect to have healthy returns, as is the case of all projects that we approve.

Thank you.

Thank you, Ramon. Next question from Guilherme Avila with Tagus.

Good afternoon, Nivaldo, Ramon, Ian. What is the size of the factors that led to an increase in expenses, and I think Ramon is going to speak a little bit about the consolidated expenses of the company, which would be non-recurring and impacting EBITDA?

Ramon, over to you.

I think you're referring to administrative expenses, consolidated number. I can comment on those.

They are apportioned for each one of the divisions, but the impact of these in fact for automotive division, is the same that we have in the consolidated. In our earnings release, we informed about that, but if I can explain in more detail what we mentioned there, we had an increase in consolidated expenses, an increase of around 52%, R$6.5 million in the quarter.

What could be highlighted here? We have higher expenses with law firms, linked to anti-competition lawsuits, amounted to approximately R$1.6 million quarter-on-quarter.

It's quite interesting, because in the full year, we were within the standard, but in Q4, specifically, this explains part of this difference. What I'm going to tell you about the quarter was repeated throughout the year, higher expenses with ERP, we had the deployment of our ERP system, and these expenses, most of them come from the amortization of this investment, and this also falls into administrative expenses, and also adjustments in infrastructure which were necessary to readapt our processes so that they would be in line with the ERP deployed.

That added about R$1.5 million, and like I said, the major part was amortization. Law firm expenses, R$1.6 million; ERP, R$1.5 million.

In this quarter, we also had more labor claims and expenses with employee terminations, about R$1.4 million, R$1.5 million. What else to be highlighted?

Then we start having smaller expenses. We had some spending with technology, IT, about R$700,000, and this is linked to investments in the data center, information security, so that we would be compliant with our needs.

Lastly, in that order of magnitude, worth highlighting, because I think that these account for about 80% to 90% of the R$6.5 million, we had some increase in administrative expenses themselves, linked to the fact that we acquired a company called [Buscarne?] , which is linked to Fast Line activities, transportation of used vehicles and motorcycles, and in Q4 2024, we didn't have it, now we do, about R$500,000, R$600,000, and that drives up administrative expenses.

That would explain roughly 90% of this variation. This is how we would break it down, and thinking about what is recurring, non-recurring, well, labor claims, expenses with employee terminations, those are non-recurring events, but of course, in the day-to-day of any company, that happens eventually.

Basically that's it. Thank you.

Thank you, Ramon. Please hold as we collect more questions.

As we have no more questions, we will end the Q&A session. I'll turn the floor to Nivaldo for his final statements.

Nivaldo?

Alright. Before we end, I would like to highlight that despite the low growth of the automotive industry expected for 2026, and this is the forecasting of sectoral agencies, the market in the first 2 months, well the numbers are public knowledge, they have shown to be very positive, with an effective recovery of daily sales.

As we mentioned, there was a growth of 9% vis-a-vis 3%, which is the number that was expected. This brings a slight optimism to the market.

With that, I would like to thank all of you who joined us today. Thank you to those who participated, and rest assured that we're working hard to have a Q1 2026 that will be very good.

Thank you very much.