Tegma gestão de logistica

MANAGEMENT’S COMMENTS ON THE RESULTS

We are pleased to announce our consolidated results for the fourth quarter and full year of 2012, a period when the auto industry had still demonstrated its importance to the national economy and which the Company's Integrated Logistics was consolidated around the e-commerce segment, with the acquisition of LTD Transportes. Both of the Company’s markets outpaced Brazilian GDP growth, showing that Tegma is inserted in exceptionally dynamic segments of the economy.

It was a good year for the country’s vehicle market – showing in the annual comparison of vehicle sales an increase of 6.1% in 2012 and increase of 7.8% in the fourth quarter 2012. Individual earnings recorded steady growth throughout, accompanied by reduced unemployment and an upturn in the volume of credit for vehicle financing. In addition, segment delinquency rates closed December flat over January, indicating healthy prospects for the continuing expansion of credit in 2013. Domestic vehicle production fell by 1.9% over 2011, mainly due to the prevalence of imported over national models.

The performance of Tegma's Vehicle Logistics segment was similar to that of the auto market as a whole: the volume of vehicles transported for the internal market increased by 8.4% in the year and 7.6% in 4Q12. In terms of revenue, the segment grew 15.3% in 2012 against 2011, the same level of growth in the fourth quarter of 2012 over the same period of 2011. The auto parts segment recorded annual and quarterly growth of 3.6% and 4.8%, respectively, higher than the national figures.

Concerning the Integrated Logistics market, e-commerce market posted annual revenue of R$ 22.5 million a growth of 20% in the annual comparison, with a peculiar geographical diversification of Brazilian online sales. It also became clear that small and midsized online retailers were doing better than the market as a whole and that Brazilians are increasingly acquiring higher-value goods