Vulcabras S A : ITR-1Q24

Interim financial information

Vulcabras S.A.

March 31, 2024

with Report on Review of Interim Financial Information

Vulcabras S.A.

Interim financial information

March 31, 2024

Contents

Report on the review of quarterly information	1
Reviewed individual and consolidated interim financial information
Statements of financial position	3
Statements of profit or loss	4
Statements of comprehensive income	5
Statements of changes in equity	6
Statements of cash flows	7
Statements of added value	8
Notes to the individual and consolidated interim financial information	9

Centro Empresarial Queiroz Galvão - Torre Cícero Dias

Rua Padre Carapuceiro, 858

8º andar, Boa Viagem

51020-280 - Recife - PE - Brasil

Tel: [phone]

Fax: [phone] ey.com.br

Report on the review of quarterly information

To

the Administrators and Shareholders of

Vulcabras S.A.

Jundiaí - SP

Introduction

We have reviewed the interim, individual and consolidated financial information of Vulcabras S.A. ("Company"), contained in the Quarterly Information (ITR) Form for the quarter ended March 31, 2024, which comprise the balance sheet as of March 31, 2024 and related statements of income, comprehensive income, changes in shareholders' equity and cash flows for the quarter then ended, as well as corresponding explanatory notes, including material accounting policies and other clarifying information.

Responsibility of Executive Board for the consolidated interim financial information

Executive Board is responsible for the preparation of the individual and consolidated interim financial information in accordance with NBC TG 21 - Interim Financial Reporting and International Standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as for the presentation of this information in a manner consistent with the standards issued by the Brazilian Securities and Exchange Commission, applicable to the preparation of the Quarterly Information (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review

Our review was carried out in accordance with the Brazilian and international review standards for interim information (NBC TR 2410 / ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the individual and consolidated interim information

Based on our review, we are not aware of any facts that would lead us to believe that the individual and consolidated interim financial information included in the quarterly information referred to above was not prepared, in all material respects, in accordance with NBC TG 21 and IAS 34 applicable to the preparation of Quarterly Information (ITR), and presented in a manner consistent with the standards issued by the Securities Commission.

1

Uma empresa-membro da Ernst & Young Global Limited

Other matters

Statements of added value

The aforementioned quarterly information includes the individual and consolidated statements of added value for the three-month period ended March 31, 2024, prepared under responsibility of Company's Executive Board, and presented as supplementary information for IAS 34 purposes. These statements have been subject to review procedures performed in conjunction with the review of the quarterly information, in order to determine whether they are reconciled with the interim financial information and book records, as applicable, and whether their form and content are in accordance with the criteria defined in NBC TG 09 - Statement of Added Value. Based on our review, we are not aware of any facts that may lead us to believe that those statements of added value have not been prepared, in all material respects, in accordance with the criteria set forth in this Standard and consistently with respect to the individual and consolidated interim financial information taken as a whole.

Recife, May 7, 2024.

ERNST & YOUNG

Auditores Independentes S/S Ltda.

CRC SP-015199/O

Original report in Portuguese signed by

Francisco da Silva Pimentel

Accountant CRC SP-171230/O

2

Vulcabras S.A. (Publicly-held company)

Statements of financial position

As of March 31, 2024 and December 31, 2023 (In thousands of reais)

		Consolidated		Parent Company			Consolidated		Parent Company
Assets	Note	03/31/2024	12/31/2023	03/31/2024	12/31/2023	Liabilities	Note	03/31/2024	12/31/2023	03/31/2024	12/31/2023
Cash and cash equivalents	4	311.687	361.020	40.659	1.023	Suppliers	16	130.101	83.779	1.721	2.631
Interest earning bank deposits	5	252.687	3	252.687	3	Loans and financing	17	269.635	234.497	-	-
Trade accounts receivable	6	734.347	830.672	-	-	Lease liabilities	18	9.271	8.433	-	-
Inventories	7	650.690	583.534	-	-	Taxes payable		25.039	39.332	336	195
Recoverable taxes	8	107.262	119.435	648	648	Salaries and vacations payable		54.188	56.070	21	21
Income tax and social contribution	9a	29.246	26.786	2.420	992	Provisions	19	2.332	2.739	340	382
Other accounts receivable - related parties	11b	-	-	10.592	255.742	Commissions payable		26.345	28.239	-	-
Other accounts receivable and other receivables		26.167	39.177	2.749	4.142	Dividends and profits payable		122.604	15	122.604	15
									Other accounts payable		54.712		58.576		298		225
Total current assets		2.112.086	1.960.627	309.755	262.550	Total current liabilities		694.227	511.680	125.320	3.469
Interest earning bank deposits	5	11.404	13.446	2	2
Trade accounts receivable	6	3.830	3.873	-	-	Loans and financing	17	145.926	203.253	-	-
Recoverable taxes	8	54.707	59.236	1.920	1.920	Lease liabilities	18	5.501	6.862	-	-
Deferred income tax and social contribution	9b	1.312	1.286	-	-	Provisions	19	53.806	53.147	459	399
Judicial deposits	10	12.512	27.847	249	250	Deferred income tax and social contribution	9b	2.051	2.071	-	-
Goods for sale		194	194	-	-	Other accounts payable		2.627		2.844		-		-
Other receivable accounts		2.096	2.090	1.013	1.012	Total non-current liabilities		209.911	268.177	459	399
Long-term assets		86.055	107.972	3.184	3.184
									Shareholders' equity
									Capital	20a	1.274.040	1.108.354	1.274.040	1.108.354
									Capital reserves	20b	320.217	(4.102)	320.217	(4.102)
Investments	12a	64.587	62.883	1.815.428	1.733.010	Revaluation reserves	20c	3.982	4.020	3.982	4.020
Investment property		2	2	-	-	Equity valuation adjustments	20d	24.819	23.965	24.819	23.965
Right-of-use	18	12.390	12.903	-	-	Profit reserve	20e	290.838	862.750	290.838	862.750
Property, plant and equipment	13	423.924	422.650	3	-	Retained earnings	20e	88.806	-	88.806	-
Intangible assets	14	208.106	208.116	111	111
									Shareholders' equity attributable to controlling
									shareholders		2.002.702	1.994.987	2.002.702	1.994.987
		709.009	706.554	1.815.542	1.733.121
									Non-controlling interest		310		309		-		-
Total non-current assets		795.064		814.526		1.818.726		1.736.305	Total shareholders' equity		2.003.012		1.995.296		2.002.702		1.994.987
									Total liabilities		904.138		779.857		125.779		3.868
Total assets		2.907.150		2.775.153		2.128.481		1.998.855	Total liabilities and shareholders' equity		2.907.150		2.775.153		2.128.481		1.998.855
											-	-	-	-

See the accompanying notes to the quarterly information.

3

Vulcabras S.A. (Publicly-held company)

Statements of profit or loss

As of March 31, 2024 and 2023

(In thousands of reais, except net earnings per share)

		Consolidated		Parent Company
	Note	03/31/2024	03/31/2023	03/31/2024	03/31/2023
Continued operation
Net sales	21	597.267	571.118	-	-
Cost of sales and resales	22	(357.381)		(345.759)		-		-
Gross income		239.886	225.359	-	-
Sales expenses	23	(108.587)	(99.872)	-	-
Provision for expected losses for allowance for doubtful accounts	23	(2.112)	(3.184)	-	-
Administrative expenses	24	(37.465)	(32.385)	(819)	(405)
Other operating revenues, net	25	4.011	1.695	1.721	1.595
Equity in net income of subsidiaries	12b	1.380		1.612		81.564		83.658
Income before net financial expenses and revenues and taxes		97.113	93.225	82.466	84.848
Financial revenues		20.999	20.575	6.362	1.335
Financial expenses		(20.219)		(22.723)		(16)		(2.475)
Financial revenues and expenses, net	26	780		(2.148)		6.346		(1.140)
Income before income taxes		97.893	91.077	88.812	83.708
Deferred income tax and social contribution	9c	(9.131)		(7.447)		(44)		(68)
Net income for the period		88.762	83.630	88.768	83.640
Income attributable to:
Controlling shareholders		88.768	83.640	88.768	83.640
Non-controlling shareholders		(6)		(10)		-		-
Net income for the period		88.762	83.630	88.768	83.640
Earnings per share
Earnings per common share - basic						0,3395		0,3409
Earnings per common share - diluted					0,3380	0,3397
Number of shares at the end of the period
Outstanding common shares						261.447.583		245.373.694
Outstanding common shares with a dilution effect						262.628.711		246.248.120

See the accompanying notes to the quarterly information.

4

Vulcabras S.A.

(Publicly-held company)

Statements of comprehensive income

As of March 31, 2024 and 2023

(In thousands of reais)

	Consolidated		Parent Company
	03/31/2024	03/31/2023	03/31/2024	03/31/2023
Net income for the period	88.762	83.630	88.768	83.640
Other comprehensive income - OCI
854	(1.195)	854	(1.195)
Items that can be subsequently reclassified to income (loss)
Exchange differences from translation of foreign operations	854	(1.183)	854	(1.183)
Financial assets at fair value through other comprehensive income	-	(12)	-	(12)
Total comprehensive income	89.616	82.435	89.622	82.445
Comprehensive income attributable to:
Controlling shareholders	89.622	82.445	89.622	82.445
Non-controlling shareholders	(6)	(10)	-	-

See the accompanying notes to the quarterly information.

5

Vulcabras S.A. (Publicly-held company)

Statements of changes in equity
As of March 31, 2024 and 2023
(In thousands of reais)
									Consolidated
						Parent Company
								Other
								comprehensive
			Capital reserves				income		Profit reserves
			Goodwill in the	Stock option and		Reflected revaluation	Equity		Legal		Statutory		Retained					Non-controlling		Total
	Capital		valuation					Total				shareholders'
	issue of shares	treasury shares		reserve in subsidiaries		reserve		reserve		earnings				interest
				adjustment									equity
Balances at January 1, 2023	1.106.717		-	(1.472)		4.175		25.974		39.187		536.907		-		1.711.488		346		1.711.834
Realization of revaluation reserve in subsidiary, net of taxes	-		-	-	(39)		-	-	-	39	-	-	-
Transaction with share-based payments	-		-	(1.052)	-		-	-	-	-	(1.052)	-	(1.052)
Treasury shares acquired	-		-	(889)	-		-	-	-	-	(889)	-	(889)
Capital increase (Note 20.a)	1.637		-	-	-		-	-	-	-	1.637	-	1.637
Other comprehensive income			-
Exchange differences from translation of foreign operations	-		-	-	-		(1.183)	-	-	-	(1.183)	(13)	(1.196)
Financial assets at fair value through other comprehensive income	-		-	-	-		(12)	-	-	-	(12)	-	(12)
Net income for the period	-		-	-		-		-		-		-		83.640		83.640		(10)		83.630
Balances at March 31, 2023	1.108.354		-	(3.413)		4.136		24.779		39.187		536.907		83.679		1.793.629		323		1.793.952
Balances at January 1, 2024	1.108.354		-	(4.102)		4.020		23.965		63.931		798.819		-		1.994.987		309		1.995.296
Realization of revaluation reserve in subsidiary, net of taxes	-		-	-	(38)		-	-	-	38	-	-	-
Transaction with share-based payments	-		-	(681)	-		-	-	-	-	(681)	-	(681)
Capital increase (Note 20.a)	10.441		-	-	-		-	-	-	-	10.441	-	10.441
Capital increase, including goodwill on issuing shares (Note 20.a)	176.350		325.000	-	-		-	-	-	-	501.350	-	501.350
Costs with issue of shares (Note 20.a)	(21.105)		-	-	-		-	-	-	-	(21.105)	-	(21.105)
Other comprehensive income
Exchange differences from translation of foreign operations	-		-	-	-		854	-	-	-	854	7	861
Net income for the period	-		-	-	-		-	-	-	88.768	88.768	(6)	88.762
Distribution of income:
Minimum mandatory dividends	-		-	-		-		-		-		(571.912)		-		(571.912)		-		(571.912)
Balances at March 31, 2024	1.274.040		325.000	(4.783)		3.982		24.819		63.931		226.907		88.806		2.002.702		310		2.003.012

See the accompanying notes to the quarterly information.

6

Vulcabras S.A. (Publicly-heldcompany)

Statements of cash flows
As of March 31, 2024 and 2023
(In thousands of reais)
		Consolidated			Parent Company
	Note	03/31/2024	03/31/2023	03/31/2024	03/31/2023
Cash flow from operating activities
Net income for the period		88.762	83.630	88.768	83.640
Adjustments for:		-	-	-
Depreciation and amortization		25.319	23.726	-	-
Provision for impairment losses on inventories	7b	14.743	5.572	-	-
Interest on provisioned leases	18	649	1.230	-	-
Net value of written off tangible and intangible assets		5.888	1.623	-	-
Yields from interest earning bank deposits		(3.763)	(258)	(3.464)	-
Provision for contingencies	19	19.128	1.807	65	(3)
Equity in net income of subsidiaries	12b	(1.380)	(1.612)	(81.564)	(83.658)
Transaction with share-based payments	20b	(681)	(1.052)	(681)	(1.052)
Provision (reversal) for expected losses for doubtful accounts		2.112	3.184	-	-
Gain or loss on lease termination		(459)	-	-	-
Recovery of PIS and COFINS on ICMS		(1.724)	(3.288)	-	-
Financial charges and exchange-rate change recognized in income (loss)		11.787	11.293	-	-
Current and deferred income tax and social contribution	9c	9.131	7.447	44	68
Non-controlling interest		6	10	-	-
		169.518		133.312			3.168		(1.005)
					-
Changes in assets and liabilities
Trade accounts receivable		95.439	140.101	-	-
Inventories		(81.899)	(152.743)	-	-
Recoverable taxes		15.966	(2.403)	(1.428)	(381)
Other accounts receivable		13.004	5.698	246.542	(44.751)
Judicial deposits		(2.122)	(2.241)	1	(2)
Suppliers		45.276	66.507	(910)	8
Taxes payable		(21.242)	4.664	97	(189)
Salaries and vacations payable		(1.882)	(2.724)	-	1
Provisions		(1.419)	(2.453)	(47)	(189)
Commissions payable		(1.894)	660	-	-
Other accounts payable		(4.080)	(15.426)	73	(340)
Cash from (used in) operating activities		224.665		172.952			247.496		(46.848)
		-			-
Interest paid	17d	(7.480)	(5.615)	-	-
Payment of lease interest	17d	(377)	(557)	-	-
Income taxes paid		(1.895)		(6.963)			-		-
		(9.752)		(13.135)			-		-
		-			-
Net cash flow from (used in) operating activities		214.913		159.817			247.496		(46.848)
		-			-
Cash flow from investing activities
Acquisitions of property, plant and equipment (*)	13b	(29.041)	(29.861)	(3)	-
Redemption (investment) of interest earning bank deposits		(246.879)	42	(249.220)	(1)
Funds from disposal of property, plant and equipment		154	118	-	-
Acquisitions of intangible assets	14b	(637)	(20)	-	-
Decrease in investee's interest	12b	-		-			-		99.998
Net cash flow from (used in) investment activities		(276.403)		(29.721)			(249.223)		99.997
		-	-	-
Cash flow from financing activities
Loans obtained - Principal	17d	31.892	77.262	-	-
Payment of loans obtained - Principal	17d	(58.328)	(28.433)	-	-
Receipt (payments) of loans with related parties	11b	-	-	-	(52.743)
Acquisition of treasury shares	20b	-	(889)	-	(889)
Dividends and interest on own capital paid	17d	(449.323)	-	(449.323)	-
Capital increase	20a	186.791	1.637	186.791	1.637
Goodwill on the subscription of shares	20b	325.000	-	325.000	-
Realization of expenditure with issuance of shares	20a	(21.105)	-	(21.105)	-
Payment of lease liabilities	17d	(2.721)	(3.182)	-	-
Net cash flow from (used in) financing activities		12.206		46.395			41.363		(51.995)
		-			-
Increase (decrease) in cash and cash equivalents		(49.284)		176.491			39.636		1.154
					-
Cash and cash equivalents at the beginning of the year		361.020	197.197	1.023	35.161
Effect of exchange-rate changes on cash and cash equivalents		(49)	498	-	-
Cash and cash equivalents at the end of the year		311.687	374.186	40.659	36.315
Increase (decrease) in cash and cash equivalents		(49.284)	176.491	39.636		1.154
		-	-	-	-
See the accompanying notes to the quarterly information.

7

Vulcabras S.A.
(Publicly-held company)
Statements of added value
As of March 31, 2024 and 2023
(In thousands of reais)
	Consolidated			Parent Company
	03/31/2024			03/31/2023	03/31/2024	03/31/2023
Revenues	684.619			645.931		415		161
Sale of goods, products and services	680.333			646.706	-	-
Other revenues and expenses	6.398			2.409	415	161
Expected losses for allowance for doubtful accounts	(2.112)			(3.184)	-	-
Inputs acquired from third parties	(281.015)			(286.437)		(421)		46
Raw material used	(124.421)			(132.202)	-	-
Cost of products and goods sold and services rendered	(94.508)			(81.813)	-	-
Materials, energy, outsourced services and other	(62.086)			(72.422)	(421)	46
Loss/recovery of asset values	-			-	-	-
Gross added value	403.604			359.494		(6)		207
Retentions	(25.320)			(23.725)		-		-
Depreciation and amortization	(25.320)			(23.725)	-	-
Net added value generated by the Company	378.284			335.769		(6)		207
Added value received as transfer	24.798			23.739		89.804		86.655
Equity in net income of subsidiaries	1.380			1.612	81.564	83.658
Financial revenues	20.999			20.575	6.362	1.335
Other	2.419			1.552	1.878	1.662
Total added value to be distributed	403.082			359.508		89.798		86.862
Distribution of added value	403.082			359.508		89.798		86.862
Personnel	190.090			159.608		291		186
Direct remuneration	110.681			102.257	-	-
Benefits	20.818			21.278	-	-
FGTS	7.607			8.116	-	-
Sales commissions	46.084			24.519	-	-
Directors' fees	4.900			3.438	291	186
Taxes, duties and contributions	104.300			94.203		737		567
Federal	87.702			75.757	649	483
State	16.379			18.263	-	-
Municipal	219			183	88	84
Third-party capital remuneration	19.930			22.067		2		2.469
Interest	18.984			21.260	2	2.470
Rents	945			808	-	-
Other	1			(1)	-	(1)
Remuneration of own capital	88.762			83.630		88.768		83.640
Retained earnings	88.768			83.640	88.768	83.640
Non-controlling interest	(6)			(10)	-	-

See the accompanying notes to the quarterly information.

8