Earnings Release 4T22

Consistent results and strong operating cash generation

Progess in the capture of synergies and beginning of operations with MWM do Brasil

Revenues of R$10.2 billion in 2022 (+44% vs 2021): these figures include the result of December of MWM Tupy do Brasil (“MWM do Brasil”), totaling R$246 million. Transfer of costs and realization of prices mitigated bottlenecks in customers’ supply chain, which affected volumes produced. Revenue of R$2.6 billion in 4Q22 (+26% vs 4Q21).

Operating Cash Generation: R$402 million in 2022 (+24%), featuring the second half’s cash generation, which exceeded R$650 million. The cash generation reported in 4Q22, of R$426 million (+42%), is the highest ever reported by the Company for a quarter and it was impacted, among other factors, by the decline of seven days in the cash conversion cycle compared to 3Q22.

Adjusted EBITDA: R$1.3 billion in 2022 (+44%), up by R$390 million vs 2021, with flat margin. The impact of operations that still have lower margins (12 months – Aveiro and Betim) and stoppages that affected volumes were mitigated by the capture of synergies and management initiatives.

Net Income: R$502 million in 2022, the highest ever reported, a growth of 148% vs 2021. Net income of R$56 million in 4Q22.

Return on Invested Capital (ROIC): 5% in 2022 (vs 10.6% in 2021), despite higher working capital and increased asset base coming from MWM do Brasil and considering only one month (December) of net operating income after taxes.

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