Arezzo Indústria e Comercio S A : Dados Econômico-Financeiros

(A free translation of the original in Portuguese)	Version: 1
Quarterly Information (ITR) at June 30, 2021- AREZZO INDÚSTRIA E COMÉRCIO S.A.

Contents

Company information

Capital composition

1

Parent company financial statements

Balance sheet - Assets	2
Balance sheet - Liabilities and equity	3
Statement of income	5
Statement of comprehensive income	6
Statement of cash flows	7
Statement of changes in equity
1/1/2021 to 6/30/2021	9
1/1/2020 to 6/30/2020	10
Statement of value added	11

Consolidated financial statements

Balance sheet - Assets	12
Balance sheet - Liabilities and equity	13
Statement of income	15
Statement of comprehensive income	17
Statement of cash flows	18
Statement of changes in equity
1/1/2021 to 6/30/2021	20
1/1/2020 to 6/30/2020	21
Statement of value added	22
Management Commentary	23
Notes to the interim financial statements

Reports and Statements

Independent auditor's review report - unqualified conclusion	110
Report of the Supervisory Board or its equivalent	111
Statement by the officers on the financial statements	112
Statement by the officers on the independent auditor's report	113

(A free translation of the original in Portuguese)

Version: 1

Quarterly Information (ITR) at June 30, 2021 - AREZZO INDÚSTRIA E COMÉRCIO S.A.

Company information / Capital composition

Number of shares	Three months ended
(thousands)	6/30/2021
Paid-up capital
Common shares	99,631
Preferred shares	0
Total	99,631
Treasury shares
Common shares	554
Preferred shares	0
Total	554

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(A free translation of the original in Portuguese)

Version: 1

Quarterly Information (ITR) at June 30, 2021 - AREZZO INDÚSTRIA E COMÉRCIO S.A.

Parent company financial statements/ Balance sheet - Assets (In thousands of reais)

Account	Account title	Second quarter	Prior year
code		6/30/2021	12/31/2020
1	Total assets	2,255,844	2,355,157
1.01	Current assets	589,318	850,035
1.01.01	Cash and cash equivalents	673	3,291
1.01.02	Cash investments	147,418	347,640
1.01.02.01	Cash investments at fair value through profit or loss	147,418	347,640
1.01.02.01.03	Cash investments at fair value	147,418	347,640
1.01.03	Trade and other receivables	268,181	385,479
1.01.03.01	Trade receivables	253,197	385,479
1.01.03.02	Other receivables	14,984	0
1.01.03.02.01	Dividends receivable	14,984	0
1.01.04	Inventories	137,133	85,694
1.01.06	Taxes recoverable	16,394	11,461
1.01.06.01	Current taxes recoverable	16,394	11,461
1.01.08	Other current assets	19,519	16,470
1.01.08.03	Other	19,519	16,470
1.02	Non-current assets	1,666,526	1,505,122
1.02.01	Long-term receivables	241,467	144,863
1.02.01.04	Trade and other receivables	32,553	2,564
1.02.01.04.01	Trade receivables	32,553	2,564
1.02.01.07	Deferred tax assets	26,220	48,850
1.02.01.07.01	Deferred income tax and social contribution	26,220	48,850
1.02.01.09	Receivables from related parties	162,149	75,548
1.02.01.09.02	Receivables from subsidiaries	130,371	30,523
1.02.01.09.05	Loans to related parties	31,778	45,025
1.02.01.10	Other non-current assets	20,545	17,901
1.02.01.10.03	Judicial deposits	20,228	17,585
1.02.01.10.04	Other	317	316
1.02.02	Investments	1,302,417	1,253,681
1.02.02.01	Investments accounted for using the equity method	1,297,851	1,251,565
1.02.02.01.02	Investments in subsidiaries	1,297,851	1,251,565
1.02.02.02	Investment properties	4,566	2,116
1.02.02.02.01	Investment properties	4,566	2,116
1.02.03	Property, plant and equipment	49,531	49,068
1.02.03.01	Property, plant and equipment in operation	49,531	49,068
1.02.04	Intangible assets	73,111	57,510
1.02.04.01	Intangible assets	73,111	57,510
1.02.04.01.02	Trademarks and patents	8,714	5,582
1.02.04.01.03	Software licenses	64,397	51,928

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(A free translation of the original in Portuguese)

Version: 1

Quarterly Information (ITR) at June 30, 2021 - AREZZO INDÚSTRIA E COMÉRCIO S.A.

Parent company financial statements/ Balance sheet - Liabilities and equity (In thousands of reais)

Account	Account title	Second quarter	Prior year
code		6/30/2021	12/31/2020
2	Total liabilities	2,255,844	2,355,157
2.01	Current liabilities	531,106	600,230
2.01.01	Salaries, vacation pay and social charges payable	30,925	31,699
2.01.01.01	Social charges	2,763	2,852
2.01.01.02	Salaries and vacation pay	28,162	28,847
2.01.02	Trade payables	249,300	335,821
2.01.02.01	Domestic suppliers	248,809	332,760
2.01.02.02	Foreign suppliers	491	3,061
2.01.03	Taxes payable	8,144	8,761
2.01.03.01	Federal taxes payable	9,231	8,409
2.01.03.01.01	Income tax and social contribution payable	133	0
2.01.03.01.02	Other federal taxes	9,098	0
2.01.03.02	State taxes payable	-1,105	334
2.01.03.03	Municipal taxes payable	18	18
2.01.04	Borrowings	114,732	142,160
2.01.04.01	Borrowings	114,732	142,160
2.01.04.01.01	In local currency	114,732	41,369
2.01.04.01.02	In foreign currency	0	100,791
2.01.05	Other liabilities	128,005	81,789
2.01.05.02	Other	128,005	81,789
2.01.05.02.01	Dividends and interest on capital payable	28,422	0
2.01.05.02.04	Other	42,261	75,976
2.01.05.02.05	Lease liabilities	6,677	5,813
2.01.05.02.06	Payables for acquisition of subsidiary	50,645	0
2.02	Non-current liabilities	293,758	406,330
2.02.01	Borrowings	227,679	318,611
2.02.01.01	Borrowings	227,679	318,611
2.02.01.01.01	In local currency	227,679	318,611
2.02.02	Other liabilities	14,500	16,735
2.02.02.02	Other	14,500	16,735
2.02.02.02.04	Lease liabilities	14,500	16,735
2.02.04	Provisions	51,579	70,771
2.02.04.01	Provisions for tax, social security, labor and civil proceedings	7,009	5,721
2.02.04.01.02	Provision for social security and labor proceedings	5,286	3,990
2.02.04.01.03	Provision for employee benefit obligations	0	56
2.02.04.01.04	Provision for civil proceedings	48	0
2.02.04.01.05	Provision for tax proceedings	1,675	1,675
2.02.04.02	Other provisions	44,570	65,050
2.02.04.02.04	Other payables	500	65,050
2.02.04.02.05	Deferred income	133	0
2.02.04.02.06	Provision for losses on investments	43,937	0
2.02.06	Deferred profit and revenue	0	213
2.02.06.02	Deferred revenue	0	213
2.03	Equity	1,430,980	1,348,597
2.03.01	Paid-up capital	808,715	967,924
2.03.02	Capital reserves	-51,547	49,229

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(A free translation of the original in Portuguese)

Version: 1

Quarterly Information (ITR) at June 30, 2021 - AREZZO INDÚSTRIA E COMÉRCIO S.A.

Parent company financial statements/ Balance sheet - Liabilities and equity (In thousands of reais)

Account	Account title	Second quarter	Prior year
code		6/30/2021	12/31/2020
2.03.02.02	Special reserve for goodwill arising from merger	0	21,470
2.03.02.05	Treasury shares	-51,547	-191
2.03.02.09	Reserve for share option and restricted stock plans	0	27,950
2.03.04	Revenue reserves	545,273	338,414
2.03.04.05	Retained earnings reserve	107,895	107,895
2.03.04.07	Tax incentive reserve	227,937	227,937
2.03.04.08	Proposed additional dividend	0	2,582
2.03.04.10	Capital reserve	209,486	0
2.03.04.11	Investment losses	-45	0
2.03.05	Retained earnings	133,466	0
2.03.06	Carrying value adjustments	-4,927	0
2.03.08	Other comprehensive loss	0	-6,970

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