TPI Triunfo Participacoes e Investimentos SA

BOVESPA:TPIS3

Earnings Call Transcript

[Operator]

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to IMC's conference call to discuss the third quarter 2020 results of Triunfo Participações e Investimentos. In this conference, we have Carlo Bottarelli. We also have the Director of Relations Fernanda Castanho, the manager of compliance and also our Investor Relations team.

[Operator Instructions] This audio is being broadcast simultaneously on the Investor Relations website. This teleconference might have forward-looking statements that are subject to known and unknown risks and uncertainties that could cause the company's actual results to differ from those in the forward-looking statements. Such statements speak only as of the date they are made, and the company is under no obligation to update them in light of future developments.

Now we'd like to pass the floor to Mr. Roberto Carvalho. Please, Mr. Roberto, the floor is yours.

[Roberto Solheid da de Carvalho, executive]

Good morning, everyone. Welcome to the conference call to present Triunfo Participações e Investimentos results for the third quarter of 2023. This quarter was marked by events that impacted TPI's results, reinforcing the company's soundness and its strategic vision for the future. We successfully readjusted Triunfo Transbrasiliana tariffs on July 28, increasing it by 10.74% compared to the 2021 base date. This adjustment is crucial for maintaining the company's financial sustainability and the quality of services provided. A second adjustment for Triunfo Transbrasiliana of 5.90% on October 24, 2022, while having no impact on the third quarter of 2023 result underscores the legitimacy of our proposals in recent years.

Our Chairman, Carlo Bottarelli, participated in the videocast interview between [indiscernible] and CEOs, discussing openly and transparently, the main factors impacting TPI's results and sharing our perspectives for the future. An important event was the expression of interest in remaining in the concession of Viracopos Airport and Triunfo Concebra, considering the Federal Court of Accounts understanding. It's worth noting that the expression of interest doesn't imply the immediate end of the new bidding process. Extension of the concession agreement depends on negotiations with the government following legislation and guidelines from Brazil's Federal Court of Accounts.

In the Road segment, toll revenue increased by 11% in 3Q '23 compared to the same period last year, driven mainly by a 5% increase in the concessionaire light vehicle traffic in the third quarter due to the greater flow of passenger vehicles and the tariff adjustments at Triunfo Transbrasiliana.

In the Energy segment, Tijoá reported net revenue of BRL 36 million in 3Q '23, a 4% increase year-over-year due to Tijoá's annual generation revenue readjustment and increased financial compensation for water resources.

In the Airport segment, not consolidated in our financial statements, there was a 5% increase in passengers using the airport in 3Q '23, demonstrating the quality and efficiency of services.

Now for the consolidated results for the third quarter of 2023. The figures mentioned reflect the company's share in each business. Adjusted and consolidated EBITDA was positively affected by the effects of Triunfo Concebra surplus tariffs and the increase in revenue at Tijoá. As a result, the EBITDA reached BRL 198 million in the third quarter of 2023, an increase of 87% over the same period last year. This increase is due to the negative inflation seen in the third quarter of 2022, which benefited the results for the third quarter of this year.

Operating costs were practically stable, up 1% from the same period last year. This is due to the recognition of the intangible asset of the works foreseen in the second amendment to Triunfo Concebra concession agreement. The financial results worsened by BRL 16 million compared to the same period last year. This deterioration is due to the deflation observed in the third quarter of 2022.

To conclude, as a result of the recognition of the impacts related to the deferred taxes recorded due to the signing of the second amendment Triunfo Concebra concession agreement, together with the value of the surplus tariff, the company obtained a net profit of BRL 98 million in the period.

We thank you for your attention and support. Have a great day and a great weekend. Thank you.

[Operator]

Thank you for your participation. This concludes our conference call. If you have any questions, please send them to the e-mail [email protected]. We will be contacting you soon. Have a great day. You may disconnect now.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]