Sequoia Logística e Transportes S A : Earnings Release 2Q21

Earnings

Videoconference

August 10, 2021 (Tuesday) 11:00 a.m. BRT

Portuguese

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Password: Sequoia

Webcast

English (Simultaneous Translation)

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2Q21Password: Sequoia

Webcast

2Q21

2Q21 EARNINGS RELEASE

São Paulo, August 9, 2021 - Sequoia Logística e Transportes S.A. ("Sequoia" or "Company"; B3: SEQL3), a market leader in e-commerce logistics and technology, is pleased to announce its results for the second quarter of 2021 ("2Q21"). Since 2019 our financial statements have been impacted by the adoption of IFRS 16. To better represent the financial position of the business, the figures in this release are reported under the former IAS17/CPC06 standard. A reconciliation of the 2Q21 information with IFRS16 can be found on page 20.

2Q21 Highlights

B3:SEQL3

R$ 22.05

Per share

(8/6/2021)

138,468,249

Total Shares

R$ 3.3 bn

Market Cap

Number of Orders: 11.0 million, +27% vs 2Q20

Same Client Sales: R$ 293.8 million, +149% vs 2Q20

Gross Revenue: R$ 436.7 million, +76% vs 2Q20

Net Revenue: R$ 368.9 million, +75% vs 2Q20

Gross Profit: R$ 62.6 million, +42% vs 2Q20

Adjusted EBITDA ex-IFRS: R$ 30.1 million, +73% vs 2Q20

Adjusted Net Income: R$ 17.6 million (vs. R$ 0.7 million in 2Q20)

ROIC: 40.5%

Subsequent Event: Creation of a pick-up and drop-off company with GigaHub

M illion

Highlights		2Q21	2Q20	2Q21x2Q20		6M21	6M20	6M21x6M20
B2C		9.6	7.8	23%		19.2	14.8	30%
B2B		1.4	0.9	61%		2.6	1.8	42%
Number of Orders		11.0	8.7	27%		21.8	16.6	32%
B2C		257.1	117.9	118%		487.0	204.6	138%
B2B		134.3	96.8	39%		248.6	173.2	44%
Logistics		45.3	33.6	35%		88.2	63.1	40%
Gross Revenue		436.7	248.3	76%		823.8	440.9	87%
Same Client Sales		293.8	117.9	149%		541.5	237.4	128%
Net Revenue		368.9	211.2	75%		695.3	376.5	85%
Gross Profit		62.6	44.0	42%		122.3	73.3	67%
Gross Margin		17.0%	20.8%	-3.8 pp		17.6%	19.5%	-1.9 pp
Adjusted EBITDA1		46.2	26.8	72%		76.8	39.3	96%
%Net Revenue		12.5%	12.7%	-0.2 pp		11.0%	10.4%	0.6 pp
Adjusted EBITDA Ex IFRS1		30.1	17.4	73%		46.0	21.7	112%
%Net Revenue		8.17%	8.25%	0.0 pp		6.6%	5.8%	0.8 pp
Adjusted Net Income (Loss)2		17.6	0.7	2585%		13.9	(1.8)	nd
%Net Revenue		4.8%	0.3%	4.5 pp		2.0%	-0.5%	2.5 pp
Adjusted ROIC3		40.5%	41.5%	-1.0 pp

1A d just ed EB IT D A is calculated by EBITDA, excluding M &A expenses and non-recurring income/expenses.

2A d just ed N et Inco me ( Lo ss) is calculated by Net Income, excluding goodwill amortization and non-recurring income/expenses.

3A d just ed R OIC is calculated by the sum of Adjusted EBTIDA LTM (Annualizing the acquired) + Depreciation LTM , multiplied by 1 - Income tax rate and divided by residual value + working capital. (The income tax rate applied to calculate ROIC was 34%).

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2Q21

MESSAGE FROM MANAGEMENT & OPERATIONAL HIGHLIGHTS

We ended the second quarter of 2021 with robust growth across our key operational and financial indicators, driven by the organic expansion of our operations combined with recent, successful acquisitions. We remain focused on our commitment to delivering high-quality logistics solutions to our customers throughout Brazil, including B2C shipping (last mile), B2B shipping (express less-than-truckload service, full service, field services and reverse logistics) and Logistics Services (warehousing, picking and packing, shipping and repairs), all offered as modular, integrated solutions supported by our continuously developing, proprietary technology.

In April, despite the uncertainties created by the COVID-19 pandemic, we successfully completed our first follow-on, with primary and secondary equity offerings, generating total proceeds of R$ 894 million-with R$ 199 million allocated to cash and earmarked to fund our expansion strategy. Approximately 60% of shareholders exercised their rights within the follow-on offering, and were joined by new-local and foreign- institutional investors that have further strengthened our shareholder base. Significantly, our share price doubled from the IPO to the follow-on offering, and has outperformed the IBOV index month after month.

Among the highlights in the quarter was the strong performance from SFx - our platform for small and medium sellers and large retailers - which has scaled rapidly. The platform now serves 2,000 collection points in more than 220 cities, and distributes to more than 4,000 cities throughout Brazil, with all deliveries 100% secure and trackable. The number of orders, via the platform, increased by 95.0% from the first to the second quarter of 2021, with the business continuing to expand consistently while delivering high levels of service.

In line with our e-commerce market penetration strategy, in May we completed the acquisition of Frenet, a platform offering digital shipping solutions on the B2C market. Frenet provides automated integration - including shipping rate and delivery time quotes-between seller websites and more than 300 shipping providers within a one-stop interface. The platform currently has more than 20,000 active sellers and processes more than 67 million quotes per month. Combined, Frenet and SFx will capture important synergies by connecting the small and medium-sized sellers served by the SFx platform and offering integrated pickup and delivery solutions.

In addition to Frenet, we also completed the acquisition of Plimor, a company operating in the transportation and logistics sector and specializing in light e-commerce shipping (up to 30kg) and less-than-truckload services. The company was founded in 1975 in Rio Grande do Sul and operates in its home state as well as Santa Catarina, Paraná and São Paulo (serving more than 1,800 cities), with more than 70 service points. In 2020, Plimor posted gross sales of approximately R$ 250 million, 55% in B2C and 45% in B2B Express, and delivered more than 7 million orders.

Integration of Plimor into Sequoia began in June and will be completed in the fourth quarter of the year, with full synergies expected to be captured from 2022. This acquisition has enabled us to expand our services in South of Brazil via Plimor's network of branch sites, especially in the countryside, while increasing route density to reduce lead time and optimize deliveries.

The integration of Direcional and Prime is progressing on schedule and is on track to be completed by the third quarter of the year. In January, Sequoia and Direcional began operating on an integrated basis, increasing

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operational synergies and optimizing customer relationships. We also expanded our operations in the states of Minas Gerais and Espírito Santo, while continuing to consolidate our operating bases to build freight and cargo- handling synergies.

We have initiated a process to merge Prime's partner network in the South region while absorbing a large portion of Direcional's operations into our own bases in the state of São Paulo to consolidate transfer routes. With both Direcional and Prime operating in the "medium road" and "heavy road" segments, they have greater potential for synergy capture between them.

As of the end of June, we had built a presence in 4,047 cities, adding 283 new cities in 2Q21 and expanding our footprint for deliveries to end consumers in the B2C market, which accounts for more than 95% of our deliveries. We continued to expand in minor cities in the Northeast-increasing volumes in the region-and initiated our expansion in Goiás. We also continued to implement our Multi-Origin Pickup and Transfer service, reaching 224 cities in 24 states at the end of the quarter.

We ended the quarter with consistent performance. Gross Revenue reached R$ 436.7 million in the period, a year-on-year increase of more than 76%-with improvement across all our main categories-reflecting: (i) in B2C, the integration of our recent acquisitions (Direcional, Prime and Direcional) and strong e-commerce growth driven by changing consumer behavior since the onset of the pandemic; and (ii) in B2B, strong share-of-wallet growth within our customer base and new customer acquisitions despite the closure of brick-and-mortar stores in the first fortnight of April.

Gross Profit was R$ 62.6 million in the quarter (+42% YoY), although a significant rise in the costs of key inputs in the period (diesel, plastics, cardboard and rent) combined with new collection-point openings in 700 cities- which operate with higher idle capacity over the first few months-led to a 1.3 p.p. reduction in Gross Margin compared with 1Q21, down to 17.0% in the quarter (for further information, see the section "Changes in the Costs of Key Inputs", on page 7 of this Earnings Release). Excluding the above impacts, Normalized Gross Margin would have been 19.4% in the quarter.

Adjusted EBITDA Ex-IFRS rose by a strong 73% YoY to a total of R$ 30.1 million in the period. Reflecting efficiency improvements in line with performance seasonality over the year, we ended the quarter with a 3.3 p.p. Margin gain over 1Q21, to 8.2% in the quarter. Adjusted Net Income also increased substantially to R$ 17.6 million in the period, with a YoY Net Margin gain of 4.5 p.p. to 4.8% in the quarter.

Our asset-light business model, combined with consistently improving results of operations, helped to deliver an Adjusted ROIC of 40.5% in the quarter, up 5.1 p.p. on the first quarter of the year. We have continued to invest heavily in automation and technology-which has directly translated into higher operating efficiency-investing R$ 15.4 or 3.5% of our Gross Revenue in the period. Since the IPO, we have purchased a total of 22 sorters and installed 5 (Salvador, Porto Alegre, Vitória, Blumenau and São Paulo).

All of this has been achieved while respecting and nurturing our employees, complying with applicable laws and regulations, and protecting natural resources in our operations. Sequoia has undergone a transformation in recent months, primarily since our IPO, that has further strengthened our commitment to stakeholders.

Our Sustainability department has started work on developing an ESG Plan linked to our business strategy. This quarter, we kicked off development of the ESG Plan with the launch of a stakeholder survey to identify the material topics that Sequoia will address over the coming years in our efforts to build a business model that is more inclusive and sustainable, with enhanced governance practices and higher value creation potential. Based

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on the survey and the resulting materiality matrix (in progress), in 3Q21 will begin developing our GRI Report for publication in 1Q22.

Innovation and sustainability are in our DNA, as is a strong focus on social initiatives. Throughout the quarter we continued our programs and initiatives across the three ESG dimensions, including the following:

Environmental:i) Sustainable same-day delivery using bicycles: more than 134 metric tons of CO2

avoided in 2021; ii) Waste Management Program: since the startup of our first biodigester at the Embu da Artes Mega DC, we have recycled more than 20 metric tons of plastic and more than 136 metric tons of cardboard in 2021; and iii) Plastic Reduction Program: we avoided the disposal of 634,000 plastic cups in 2021.

Social:i) Diversity Initiatives: we currently have a workforce of 7,532 people, 72% men and 28% women, including 26% women in leadership positions; ii) Inclusion Program for People with Disabilities (PwDs): we currently have 160 PwDs in our workforce; iii) Internship Program: we are in our third edition of this 18-month program, with 9 interns; iv) "Seeds" Program: in 2021 we had an additional 30 young apprentices benefited by the program; e v) People Development Program: internal employee development activities.

Governance:i) Privacy and Data Security training and investment; ii) Code of Ethics & Business

Conduct: employee training; iii) Audit Committee: work ongoing to develop an annual internal audit plan; and iv) a Board of Directors composed of 7 members including 3 independent members and 3 women.

During the quarter we were awarded an RA 1000 mark by the complaint aggregator Reclame Aqui as a company providing outstanding customer service. Companies with this mark are perceived by consumers as providing high-qualityafter-sales service, helping to build trust in our brand, products and services. Our efforts have helped to substantially improve Sequoia's customer ratings and have earned us this important seal of approval.

We remain committed to growing our operations and improving our operating margins and profitability, and focused on expanding our footprint, delivering innovative solutions and providing outstanding service levels, while taking care of our team and partners as we continue to establish Sequoia as the top logistics and shipping solutions provider in Brazil.

Thank you for your time,

Armando Marchesan Neto

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