Infracommerce CXaaS S.A. ($IFCM3)

Good afternoon, everyone. Welcome to InfraCommerce's 2026 Quarterly Results Presentation. [Operator Instructions] My name is Bruno Vasques. I am the CFO and IRO, and I will host this earnings call together with our Global CEO, Mariano Oriozabala. Before moving forward, I would like to inform that both this material, which will serve as the basis for our discussion as well as the audited financial statements can be found on our Investor Relations website. This presentation and the management's remarks may contain forward-looking statements based on reasonable and current assumptions. However, it's important to point out that such forward-looking statements are no guarantee of future events. Several factors, including risks and uncertainties, may cause events and the forward-looking statements discussed in this document not materialize. Therefore, the company's future results may materially differ from those expressed in such forward-looking statements. Lastly, we recommend that the financial indicators herein expressed should not be analyzed in an isolated manner. To that end, please refer to the complete financial statements found on our website. The last 18 months have been marked by the consistent and diligent execution of a comprehensive restructuring plan of a financial asset and operational nature, aiming to realign the capital structure to liquidity indicators, optimize operational performance and promote the current and sustainable generation of operating results and positive cash flow. As we will see throughout this presentation, from an operational perspective, the first quarter of 2026 represents a transition period between the recent restructuring and the paving of a new growth cycle and with value creation. As in 2025, we measure operational performance by accounting EBITDA less rental costs, CapEx expenditures, technological and structural, excluding the effect of impairment write-down provisions without cash impact. In this way, the accounting EBITDA with these elements reflect the operational cash generation capacity more accurately and transparently. All calculations are shown in the earnings release and can be directly reconciled with the financial statements. This indicator reached a negative amount of BRL 6.9 million in the first quarter of 2026, which is BRL 2.2 million less than in the fourth quarter of 2025. Given that CapEx expenditure is stabilized at replacement levels, this indicator is influenced by revenue, costs and expense levels. However, these 2 macro elements, revenues on the one side and costs and expenses on the other have very different drivers and context in the first quarter of 2026. Understanding them is fundamental to comprehending the context and the evolution of the restructuring plan and how the first quarter positions itself as a transition period towards a value creation path. Let's discuss them. In the first quarter of 2026, the group's net operating revenue reached BRL 138 million, representing a 25.4% decrease when compared to the first quarter of 2025 and a 29.7% decrease compared to the fourth quarter of 2025. This drop is attributed to 2 factors: termination of contracts, contracts considered costly in the context of restructuring and the loss of significant strategic contracts, which we will discuss in more detail below. InfraCommerce currently operates in an efficient and interconnected manner as one of the largest e-commerce platforms in Latin America with a presence in several countries serving global and regional brands in an integrated operation of technology, logistics and digital channel management. Having said that, the company's ideal customer profile is primarily composed of multinational and local brands with a significant presence in their respective sectors. Therefore, companies with established processes and sophisticated management structures. Now what we witnessed in the first quarter of 2026 with a significant drop in revenue resulting from the loss of strategic customers are decisions made by brands made at the end of 2024 and the beginning of 2025, seeking alternatives to their digitalization journeys often involving the in-sourcing of infrastructure materialized now in this first quarter of 2026. With the progress of the restructuring plan with the unwavering support of the creditors formalized by the agreement of 65% of debentures in September 2025 and just as important, with the resumption of excellent service levels for current customers, we are now experiencing a new phase marked by high levels of satisfaction of our current clients and the stabilization of our customer base. And not only that, current customers have become promoters of the InfraCommerce ecosystem to potential new clients of the company. It is important to highlight here that the company has an operational cycle for implementing new businesses with an average time frame of 9 months, which begins with a thorough and precise diagnosis of how to add value and involves technological integrations to ensure quality, safety and scalability, and it ends with the start of operations. For the next quarter onwards, we will provide financial and qualitative indicators of the new customer implementation agenda. Now let's move on to expenses. Total cost and expenses, excluding impairments, fell by 19% when compared to the first quarter of 2025 and by reduced 27% compared to the fourth quarter of 2025. The central element of -- is the total administrative and commercial expenses, which reached BRL 42.4 million or an 11% reduction compared to the immediately preceding quarter. In conclusion to the operational session, the focus of this year is clear to consolidate a more efficient, predictable and scalable operation, maintaining a high level of customer service and developing new businesses without proportional growth in structure, thus expanding productivity and creating value. The analytical breakdown of the period results of minus BRL 59.5 million highlights the relevance of financial expenses on convertible instruments and expenses related to depreciation and amortization of investments from previous periods, which totaled BRL 21.8 million and BRL 18 million, respectively. Net worth ended the first quarter of 2026 at BRL 152 million, reflecting the restructuring of the group's capital structure with the conversion of 65% of the mandatorily convertible debentures. The group ended the first quarter of 2026 with a cash position of BRL 121 million. Of this amount, approximately BRL 65 million refer to restricted cash balance as per explanatory note #6 of the audited financial statement tied to surety established to secure the long-term debt of FINEP, a funder of studies and projects in the amount of BRL 83 million. Adjusted net financial debt, excluding the balances of convertible instruments that will not have a cash effect upon settlement is negative by BRL 21 million. Of the total debt that is not mandatorily convertible in addition to FINEP, is worth highlighting the balance of BRL 32.2 million related to commercial notes issued within the scope of the structuring to finance the optimization agenda. These commercial notes contain conversion clauses in case of early redemption. Therefore, the total balance of potentially convertible liabilities is BRL 371 million at the end of the first quarter of 2026. I now pass the floor to Mariano, who will share with us his vision for the beginning of 2026 and the strategic direction for the year.

Thank you, Bruno. This perspective is very important. Good morning, everyone, present. The quarter of -- the first quarter reflects the company that is beginning to enter a new phase. After a period of profound operational, financial, structural transformation over the past 18 months, our focus in 2026 will be concentrated on execution, productivity and building an increasingly efficient and scalable operation. We continue evolving and simplifying the company in regional integration and in the continuous review of our operational processes, always prioritizing discipline, quality of delivery and profitability. The quarterly figures still reflect the effect of decisions made throughout the turnaround process, especially those related to contract reviews, operational streamlining and prioritizing some more efficient and sustainable revenue streams. However, at the same time, we believe that this movement is beginning to create a healthier and more consistent operational basis for the company's future cycles. Today, we have a significantly more efficient integrated structure and better prepared to operate at scale with greater productivity. And it is precisely at this point that artificial intelligence begins to play a central role within InfraCommerce. We are incorporating AI directly into the company's operation from process automation to operational artificial intelligence, customer service, technology, digital channel management and internal productivity. Our goal is clear: to grow by increasing efficiency and operational capacity without a proportional increase in the infrastructure. We believe that the combination of regional scale, proprietary technology, integrated operation and artificial intelligence create a very relevant opportunity to set InfraCommerce apart in the Latin America operational e-commerce market. We also continue advancing commercially, deepening relationships with current clients and developing new business opportunities in different geographies and verticals. We are aware that there is still important work to be done ahead of us, but we believe that the decisions taken over the last few quarters are beginning to reflect a more solid, a more predictable and better prepared company to evolve sustainably throughout 2026. We will remain focused on execution, productivity, operational excellence and technological evolution. We want to thank our employees, customers, partners and shareholders for their trust and commitment throughout this journey. Thank you all, and have a good day.

[Operator Instructions] We received the first question from [Jose Henrique Pereira ] In the release, you mentioned that throughout 2026, we will see better results. Can we expect such improvements for the second quarter or as of the third quarter of 2026? Another question, how many clients do you have in Brazil? How about InfraCommerce as a whole?

Yes, we believe that the evolution will become more evident as of the second half of the year. As of the third quarter, as we capture the effects of the initiatives of efficiencies in productivity and AI. Today, InfraCommerce serves 250 brands in Latin America and about 80 brands in Brazil. accounting for most of the operations in the group.

Our second question also from Mr.[ Jose Henrique Miranda Pereira ] The company is having conversations with the creditors about the remaining conversions of the debentures. In relation to the restructuring, to which degree the company is confident in resuming growth?

Good afternoon to shareholders. And it's very good to reinforce and clarify the norms and regulations that govern the convertible debentures. Convertible debentures, as a reminder, is mandatorily convertible instrument at the date of maturity, which is in 2030, and it can be converted to -- according to the decision of the debenture holders. So the document and the instrument regulates the actions and the moment when the convertible debentures will be materialized. 65% of the mandatorily convertible debentures have already been funded. Most of it happened in September 2025. Now in relation to the restructuring and the confidence that the growth will be a resumption. I'm going to start from the previous answer. The debenture holders showed that they support the company and the restructuring of the company by converting in a optional way, 65% of the debentures in September, providing an unwavering message to the market and to the client basis that they support this trajectory of transformation of the company. So we could go back to working capital with a positive so that the audited financial statements in 2025 would no longer have the caveat of continuity. And all those elements are key for the company to go back to be based on the major pick up the market so that we could be -- go back to the digitalization market. So the company is based on several conversations of new businesses, so much so that as of next quarter, in the next results release, we are going to add in a very responsible and transparent way as we always do, the new businesses, be them closed or underway of negotiation, preserving, of course, the confidentiality points. Another element that directs our growth, [indiscernible], is the fact that we are positioned in a segment that is still growing. So the company also grows as a result of the growth of our clients by means of the penetration in the digital market. So when we look of the same sales stores, we see a 2-digit growth of 15% in the most areas where we operate. So the answer is yes, in a very objective way, the company has a potential of growth by the base of clients because they are growing in their digital penetration and the company has now started to be considered in the main in the main brands that are looking for digital solutions in Latin America.

Moving on with your Q&A session. [Operator Instructions] Received a question from [ Clayton Turrin ]. Thank you for the question. The partnership with Core in Banco do Brazil generated any return? Or is it still in the phase of maturation?

Thank you for the question, Clayton. These are important partnerships, which are in the state of maturation. The marketplace of Coreeius started with us in July last year. The channel is being consolidated, both in terms of the division of sellers, which is a very important element. And the channel has a little bit more than 120 sellers and is on the front considering the alternatives of how to acquire clients in order to generate qualified traffic to the channel. So it's still giving its big steps, and it's still in the phase of maturation.

If there are no further questions, I would like to turn the floor back to the company's management for the final remarks.

I would like to thank everyone for attending this conference and the company, the trajectory of the company. I would like to thank all the employees in the 9 countries where we operate and also by believing in this moment and making things happen, we would like to thank the shareholders and debenture holders to provide support to our restructuring plan, and we continue operating the company in a diligent way now with a new priority. As Mariano said, grow the company with a more optimized basis of the structure, enhanced by the intensive use and intense application of artificial intelligence. Thanks, everyone.

Bruno, you said it all. I have or just to add. So I would like to thank all the shareholders, all the employees, investors who place their trust on us. We continue working hard and making a new infra grow little by little. Have a good day, everyone.