Good morning, ladies and gentlemen. Good afternoon. Welcome to the video conference of results for the Sequoia Logística, with reference to the third quarter ended September 30, 2025. We have with us today Mr. Leopoldo Bruggen, Director, President, Financial Director, and Director of Investor Relations. We inform that the presentation is being recorded and translated simultaneously. The translation is available by clicking on the interpretation button. For those listening to the conference in English, the option of silencing the original audio in Portuguese by clicking on Mute Original Audio. During the presentation of the company, all participants will be with their microphones disconnected. After that, we will start the question-and-answer session. To make questions, click on the Q&A icon and type your name and the company followed by your question.
We clarify that any declarations which may be made during this teleconference relative to the perspectives and business plans on Sequoia, operational goals and financial goals are projections of the directors of the company, which may or may not happen. Investors should understand that political factors, macroeconomic factors and other operational factors can affect the future of the company and lead to results which are materially different than those expressed in these future considerations. To open the video conference of the third quarter of 2025, I pass the word to Mr. Leopoldo Bruggen.
Thank you for the presence of everyone. It's a pleasure to be here with you. We have worked hard to restructure and help the company grow.
I would take advantage here to extend my thanks to the entire exceptional team that we have here, well, along those counselors and our lawyers and consultants. We're gonna start the presentation with the general vision of our company. We have had significant advances in the transaction with the PGFN. We've complied the commitments with the initial recovery, deleveraging our debts with the recent 13th Emission of D ebentures, and following repositioning the company for the segments that generate cash. We have initiated the restructuring of the debts of Sequoia in 2023, reagreeing with the debts and with debentures which are convertible up until the 31st of December 2025. The total of non-convertible debts, we have debts that acquired together with the group of Move3, and the anticipations of receivables for the recurring working capital.
For debts that are not convertible, approximately half will only come due in 2029 and 2032 due to the global agreement realized at the end of 2023. BRL 191 million migrated from convertible debentures in the recent 13th E mission. Being such, we retired the short-term cash flow, allowing for the recovery of the growth of the company. In the case of Move3, acquired in March 2024, this segment of credit bank card, bank cards is the principal pillar of generating cash of the company, as we will mention going forward.
The Mega Sorter, which started its operations in July 2024, doing the testing of the sorting of large packages for e-commerce, are discussing alternatives for its monetization together with the cannibalization of this segment. We have operated in the last two years with smaller clients, e-commerce clients, and even rented capacity, sorting capacity. The e-commerce market has changed to a larger concentration in marketplaces, verticalizing logistics and utilizing exclusive partners. Due to the scenario of the segment, B2C, we're evaluating the reallocation of resources for other segments. Reflects our discipline, our capital discipline, and the focus on the generation of value for the company. In October 2024, we protocolled a request for extrajudicial recovery after an agreement of 54% of our creditors.
With the majority of these suppliers of Sequoia and of the Transportadora Americana, this agreement has been complied with, as you can see in this slide, with a minimum amount agreed to by April 2026, and a larger amount only to be paid between 2030 and 2033. In the case of PGFN, we initiated the negotiations two years ago. We have come into a request for the reduction of the capacity of payment, and we've had to wait for the approval of the recovery, extrajudicial, recovery plan. With the approval of the plan, it began in October 2025, the prosecutors conceding discounts on the interest and principal. This does not count as it has no guarantees, neither does it impede the sale of assets.
Finally, for 2026, our focus is on logistics of credit cards through the Flash Courier in this segment, the B2B segment. We want to prioritize and grow this segment, which demonstrates consistent cash generation. We've been for 30 years in the credit card logistics, and the B2B segment of the group has always been a reference in the market. As I commented earlier, we are seeking alternatives to monetize the Mega Sorter in the B2C operation. We have already launched a disconnection for those collaborators in this segment. This is being conducted together with the union and within the legal requirements foreseen. Looking at the next slide. Net revenue fell by 39% in the third quarter of 2025, and in the first nine months of 2025, reflecting the deliberate segment of negative margin segments such as B2C and indoor logistics.
The gross profit has been stable, even though we've had a strong fall-off in revenue, evidence of the improved infrastructure profitability. The gross margin could still grow through our focus on the most profitable segments. We should point out that the company needs to operate in the reduction of its corporate structure beyond the liabilities that make up its expenses of SG&A. The EBITDA margin for the nine months of 2025 was positive 31.3%, an improvement when compared to the first nine months of 2024, due principally to the impacts of the extrajudicial recovery and the agreement with the PGFN. These impacts totaled.
Besides this relevant recovery of operational leverage of these operations and administrative and the depreciation and amortization of the warehouses and fleets for nine months of 2025, even considering many non-recurring expenses are reflected in this slide. Going to the next slide. Flash Courier presents stable revenue being the segment that we call cash cow in our group, with a good generation of revenue, margin, and quality of its receivables, investing its resources to maintain and grow this segment of operations. More than 80% of our revenue comes from this segment, being the principal generator of positive results in this period. The segment, B2C segment shows negative margin since 2024. The B2C segment shows a fall off with this strategy of demobilization.
In the B2B, we've had a strong contraction in 2025 due to the moment of restructuring of Sequoia Logística and the Transportadora Americana, and the proxy of clients and contracts through 2026. Finally, the revenue with the sale of assets have helped us to sustain our cash during this restructuring period. Looking at the next slide. For the BRL 464 million revenues, we had BRL 460 million in costs. Freights and franchises represented BRL 401 million. In other words, 93% of the cost of this period. Labor was 45% of our costs. In the last years, we operated in the reduction of our labor costs and the closing of our distribution centers, now focusing on alternatives to reduce the costs with transport and the increase in our costs in those cases which have been tested.
Looking at the next slide. This is the most complex slide in the presentation because our SG&A contains with the administrative team, expenses associated with the restructuring, the contingencies, and M&A. Starting with the labor costs, we can see a significant reduction going from 313 employees at the beginning of 2027 to 172 employees at the end of September. In the final months of this year, we made more cuts in the structure, simplifying the management of the company. Part of the cost with the rescissions is presented on the next line. We should point out that we have utilized individual and collective records to straighten out these costs. The provision for doubtful will depend on the exact rate of success in receiving from non-paying clients.
We have created and executing a rigid form of collections. The contingencies have suffered increases in recent months as we have inventoried and understood the legacy of the company. The amortization of the ágio and depreciation have amounts which do not show much fluctuation as they're in the administrative structure. For the plan of recovery, extrajudicial plan, we have increased conservatively the liabilities as far as the protocol of the plan, and reverted part of these liabilities as far as the approval of this and adjusting them all to present value. On the next slide, we reduced the principal liabilities, which are part of the restructuring of this legacy. We reduced in the last two months, approximately BRL 93 million of a reduction of 45% of BRL 400 million in our liabilities accounted for.
We are planning to reduce this even more in 2026. Currently, we have BRL 93 million to pay to creditors of the judicial and extrajudicial recovery, being that the most of this value will only be paid in 2030. The payments of tax payments that we have amounts to pay, ICMS, we look for specialized regimes and other actions in the state prosecutors to obtain discounts in fines and the lengthening out of this liabilities during the course of these negotiations underway in 2026. In the case of PGFN, we should start the payment of this liability in April of 2026, and we're working on the restructuring of the first payments in the form to preserve cash. The contingencies of the loss considered probable costs, probable losses, we have internal teams of consultants operating on the tax and labor fronts.
As we said previously, we believe in the space for the reduction of these amounts over 2026. Even though the total value of the legacy continues to be relevant, the period of the lengthened periods of payment with lower rates helps us to reduce this by reducing the operational tax and the segment of B2B. Being that, we've also just for the B2C segment. Finally, looking at the next slide, we're gonna show the current debt and how this debt has behaved over time. As has been published by filing on the twenty-ninth of November of 2025, the company issued the 13th Emission of D ebenture, obligatory convertible into shares to deleverage the company and generate new resources by the end of last year.
On this mission, the company raised, in December 2025, BRL 25 million in cash and migrated BRL 370 million in debts for instruments which are convertible into shares. Of this share, BRL 190 million were non-convertible debts with payments concentrated in 2026 and 2029. Excluding this migration, which occurred in the beginning of 2026, our flow of amortization of the balances existing in the third quarter of 2025 will be as presented in this slide, in the lower part of this slide. The company is negotiating the renegotiation of debts which came due in 2026, maintaining our credit lines for the renewal of anticipation of receivables, which will come due in that period.
With less focus on bank debts, we can focus on concluding the restructuring and growing the segments of cards and B2B. Once we're talking about these segments, we brought some slides to present what we have of each one of these segments. We currently have three segments in which we operate, being Flash Courier, national leader in credit cards and bank documents, with more than 60% market share and more than seven million deliveries per month all over the country. Through a network of franchise partners, we cover more than 1.2 million ZIP codes, and the sector of cards continues to grow in the country, being responsible for 70% of purchases and growing double digits every year. They're already in circulation, one credit card for every inhabitant of Brazil.
With this capillarity in Flash Courier and through our internal controls, we are encouraging the payment logistics for the pay machines through the same network. We believe in the potential of this market since the purchases of these have grown by 74% in 2025. The territorial extension and the small businesses also generates a demand for logistics, which is sophisticated in this segment of machines. B2B, we have utilized the brands carriers and Sequoia, offering operations dedicated FTL and Express in recurring contracts, both of which we have through an agreement. We have the mobilization of drivers anywhere in the country. An example of that is the success with the distribution of the iPhone 16 for Apple during 2024.
We have been able to unload a cargo in Manaus and distribute in two days in any capital in the country. In the B2C segment, as we said previously, we observed that in the sector e-commerce has been going through changes, with marketplaces and their partners gaining more and more relevance. As such, we have to seek alternatives for the monetization of the Mega Sorter, which was set up in the CD, in the rented distribution center in Campinas in São Bernardo. The next slide shows a little more light on the quality in this credit card segment. Maturity of the segments which was begun in 1993. We also observed the list of clients since most of them have contracts with Flash Courier for more than 10 years.
No less important is that through the 583 franchise partners that Flash is able to capillarity to logistics in a country as large as Brazil. These partners bring more than 19,000 deliverers to make these deliveries, transforming this network into an asset difficult to copy. In the next slide, we have a photo of the center of sorting and distribution located in São Bernardo. With a capacity for 17,000 objects per day, we've done 7.5 million monthly deliveries all over the country. Their e-commerce models and prices are perishable arrive in one to two days in the principal capitals of the southeast. This permits the banks the security and speed in the activation of cards and machines, transforming our logistics into a fast generation of capital and new business.
Finally, no less important, we have the B2B segment. This segment involves logistics, and as I mentioned, just for companies. We operate basically with dedicated operations, with common demand of large places, large marketplaces with full truckloads to attend the demand of companies, of large companies in Brazil and express companies involving air routes and land routes for the products of high value, such as is the case with smartphones, tablets and notebooks. I wanted to mention we have a more lean structure both, and we have a clear focus on the business of profitable businesses which generate cash. We have reduced by half the liabilities of our legacy and more than two-thirds the bank debts, and we continue to seek opportunities for reduction.
Our priority is with the card business, such as through Flash Courier and in the B2B logistics. We intend to utilize the network of franchisees of Flash Courier for the logistics of payment machines. The structure of the company is easier, simpler, more focused, and more prepared for the generation of value in the segments in which we are leaders. We want to discontinue the sorting and logistics of B2C commerce and continue evaluating alternatives for the monetization of the Mega Sorter. We thank you all, and I pass the word back to our moderator.
Thank you. We'll now begin the questions- and- answer session, remembering that to make a question, please give your name and company, followed by your question. Please wait while we collect any questions.
Remembering that to make questions, please click on the Q&A icon and type your name and your company, followed by your question. Our first question comes from Leandro Facchini, an individual investor. "In the presentations, you only talk about the revenue from Flash. Sequoia has no more revenue?"
Thank you for the question, Leandro. Since 2024, we have been doing an integration in the companies of the group. We don't have such a clear segregation as we had previously between Move3 and Sequoia. During this period of restructuring, we also wound up concentrating or migrating all of our contracts between the companies of the group, verifying that the certificates of negatives for debit, of debits and so forth. Some segments have the necessity of working capital, more working capital intensive.
Due to the restrictions of a working capital, we wound up utilizing the portfolio of Flash as a source of generation of cash. The quality of the clients of Flash are the one of the principals of financial institutions. There is no more a separation, a clear separation between the companies as we had in the past, and it's a natural migration, the concentration of revenue in the Flash due to the amount of receivables and the quality of the segment, as we mentioned in the 2023. Due to these situations, you see a concentration in Flash.
Remembering that to make any questions, please click on the Q&A icon and type in your name and company, followed by your company.
Please, wait while we collect any more questions. Considering that the Juliani family participated with 42% of the company, how is the family now, once that is super diluted with this 13th E mission?
Thank you for the question, Mateus. As you know, and as was published, the 13th E mission involved the possibility of adding resources and credit. We also gave the right of priority to all those involved. The fact that there was a dilution is not nominal. It happened in a way, in a wide-ranging way for the creditors and the stockholders who did not exercise this right. As far as your specific question about the Juliani family, after the credit and resources from other stockholders and creditors, the family has less than 1% of the shares of the company.
Our next question comes from Maurice Senelige. The reasons for the company changing from transport and logistics to cards, is there a reason for that?
No, the company does not produce cards. We continue to be a logistics operator with a great deal of capillarity in our entire country. Outside of logistics, credit card logistics and capillarity, as I mentioned, we also have the B2B logistics. Answering, the company continues to be a company of transportation and logistics.
Thank you. Remembering that to make any questions, please click on the Q&A icon and type your name and your company, followed by your question. Please wait while we collect any further questions. Question and answer session is now closed. We'll now pass the word over to Senhor Leopoldo for his final considerations.
Thank you all for your participation, everyone.
If you have any specific questions for our investors area, please feel free. The exchange of messages as well as questions- and- answers is ri@move3.com.br for any information in our site, in our IR site, including everything involved in the 13th E mission of Debentures, which has all been formatted here today. We thank you all our collaborators as we move forward. Thank you very much. The video conference result for Sequoia is now closed. We thank you for the participation, everyone, and please have a great afternoon. Thank you.