Dexco S A : Quartely Results 4Q23

Quarterly Results

4Q23/2023

Pro forma Adjusted and Recurring EBITDA of R$ 561.2 million in 4Q23 and of R$ 2,006.6 million in 2023, including the amount arising from the 49.0% share in LD Celulose;

Wood Division's strategy of optimum capacity (high levels of factory utilization + forestry business) in the face of the market downturn and the restructuring activities of the Finishing Division.

Dexco closed out 2023 with a positive Sustaining Cash Flow of R$362.9 million, the result of initiatives linked to maximizing Working Capital along with diligent management of CAPEX investment.

WOOD

WOOD

Sales of 722.4k m³ in 4Q23, an increase of 5.1% versus 4Q22, and of 2.706.1k m³ in 2023, a fall of 6.0% versus 2022.

Effective cost management and forestry transactions led to an improvement of 10.6 p.p. in Adjusted and Recurring EBITDA margin versus 4Q22.

Best result in the Division's history: Adjusted and Recurring EBITDA of R$438.8 million in 4Q23, with a margin of 33.8%, and of R$1,400.5 million and margin of 29.0% in 2023.

FINISHINGS FOR

CONSTRUCTION

METALS & SAN. WARE

Volume of 4,607k pieces, maintaining the volumes seen in 3Q23 despite a drop of 9.4% versus 4Q22;

Temporary factory shutdown to balance inventory levels impacted the Division's costs;

Negative Adjusted and Recurring EBITDA of R$ - 26.1 million in 4Q23 and of R$-15.6 million in 2023.

DISSOLVING WOOD PULP

Excellent quality and progress along the productivity curve;

One-off reduction in pricing levels and pressure on logistics costs impacted margins;

Pro forma Recurring EBITDA (Dexco's portion) of R$156.7 million in 4Q23, with a margin of 53.6%.

TILES

Quarterly improvement in market share arising from sales initiatives;

Price repositioning and reduction in the levels of factory utilization led to pressure on margins during the period;

Negative Adjusted and Recurring EBITDA of R$

8.2 million in 4Q23 but of positive R$ 8.4 million for 2023 as a whole.

MARKET CAP

| GRI 102-7

R$ 6,521.7

million

SHARES IN ISSUE

820,566,246

CLOSING SHARE

PRICE

R$ 8.07

TREASURY SHARES

12,424,043

INVESTOR RELATIONS | | GRI 2-3		Live
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Carolina Mulet - IR Analyst	Consolação - São Paulo - SP
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4Q23 | 2023

Consolidated Financial Results

In BRL '000	4Q23	4Q22	%	3Q23	%	2023	2022	%
Highlights
Volume shipped Deca ('000 items)	4,607	5,084	-9.4%	4,608	0.0%	19,258	23,397	-17.7%
Volume shipped Ceramic tiles (m²)	3,842,447	4,128,908	-6.9%	4,135,103	-7.1%	15,622,065	19,717,188	-20.8%
Volume shipped Wood (m³)	722,421	687,640	5.1%	673,517	7.3%	2,706,074	2,879,494	-6.0%
Consolidated Net Revenue	1,948,683	1,980,439	-1.6%	1,768,953	10.2%	7,383,409	8,486,650	-13.0%
Gross profit	505,117	614,079	-17.7%	529,220	-4.6%	2,375,867	2,871,787	-17.3%
Gross profit - Pro Forma (1)	506,692	648,037	-21.8%	600,324	-15.6%	2,476,696	2,926,472	-15.4%
Gross margin	25.9%	31.0%	-5.1 p.p.	29.9%	-4.0 p.p.	32.2%	33.8%	-1.7 p.p.
Gross margin - Pro Forma (1)	26.0%	32.7%	-6.7 p.p.	33.9%	-7.9 p.p.	33.5%	34.5%	-0.9 p.p.
EBITDA according to CVM Resolution 156/22 (2)	609,774	559,625	9.0%	531,008	14.8%	2,435,222	2,294,578	6.1%
EBITDA Mg CVM Resolution 156/22	31.3%	28.3%	3.0 p.p.	30.0%	1.3 p.p.	33.0%	27.0%	5.9 p.p.
Adjustments for non-cash events	(73,316)	(203,219)	-63.9%	(203,372)	-63.9%	(766,411)	(595,375)	28.7%
Non-recurring events (3)	(42,017)	51,164	N/A	17,421	N/A	1,738	84,979	-98.0%
Dissolving Wood Pulp	(89,973)	(41,435)	N/A	(57,114)	57.5%	(277,320)	(52,531)	N/A
Adjusted and Recurring EBITDA (4)	404,468	366,135	10.5%	287,943	40.5%	1,393,229	1,731,651	-19.5%
Adjusted and Recurring EBITDA margin (4)	20.8%	18.5%	2.3 p.p.	16.3%	4.5 p.p.	18.9%	20.4%	-1.5 p.p.
Pro-Forma Adjusted and Recurring EBITDA (including Dexco's	561,193	516,856	8.6%	461,079	21.7%	2,006,610	1,925,785	4.2%
share of LD Celulose) (5)
Net Income	195,433	217,868	-10.3%	304,125	-35.7%	811,270	764,922	6.1%
Recurring Net Income (1)(3)	77,494	206,955	-62.6%	94,806	-18.3%	370,938	771,082	-51.9%
Recurring Net Margin (1)(3)	4.0%	10.4%	-6.5 p.p.	5.4%	-1.4 p.p.	5.0%	9.1%	-4.1 p.p.
INDICATORS
Current ratio (6)	1.60	1.58	1.3%	1.34	19.4%	1.60	1.58	1.3%
Net debt (7)	4,336,351	4,038,140	7.4%	4,705,866	-7.9%	4,336,351	4,038,140	7.4%
Net debt / EBITDA LTM(8)	3.11	2.33	33.5%	3.47	-10.4%	3.11	2.33	33.5%
Average Shareholders' equity	6,232,271	5,934,748	5.0%	6,321,266	-1.4%	6,232,271	5,934,748	5.0%
ROE (9)	12.5%	14.7%	-2.1 p.p.	19.2%	-6.7 p.p.	13.0%	12.9%	0.1 p.p.
Recurring ROE	5.0%	13.9%	-9.0 p.p.	6.0%	-1.0 p.p.	6.0%	13.0%	-7.0 p.p.
SHARES
Earnings per share (BRL) (10)	0.2314	0.2761	-16.2%	0.3680	-37.1%	0.9772	1.0178	-4.0%
Closing share price (BRL)	8.07	6.78	19.0%	7.70	4.8%	8.07	6.78	19.0%
Net equity per share (BRL)	7.92	7.38	7.4%	8.06	-1.7%	7.92	7.38	7.4%
Treasury Shares	12,424,043	29,138,345	-57.4%	12,424,043	0.0%	12,424,043	29,138,345	-57.4%
Market Cap (BRL1.000)	6,521,708	5,477,704	19.1%	6,222,695	4.8%	6,521,708	5,477,704	19.1%

1. Cost of Goods Sold: 4Q23: Restructuring Tiles: (+) R$1,575k; 3Q23: Restructuring Tiles: (+) R$22,849k; Restructuring Deca: (+) R$24,111k; Closure Manizales (+) R$2,180k;
   Restructuring DNA (+) R$21,964k; 2Q23: Restructuring Deca: (+) R$28,150k. 4Q22: Deca inventory impairment: (+) R$27,357k; Employee indemnities Tiles: (+) R$6,601k; 3Q22:
   Restructuring Deca: (+) R$3,103k; Restructuring Tiles (+) R$11,462k; 2Q22: Restructuring Deca: (+) R$5,610k; Restructuring Tiles (+) R$552k. Sales expenses: : 4Q22:
   Restructuring Tiles (+) R$6,363k; Restructuring Deca (+) R$10,843k; 3Q22: Restructuring Deca (+) R$742k; Restructuring Tiles (+) R$701k; 2Q22: Restructuring Deca (+) R$227k
2. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): measure of operating performance in accordance with CVM Instruction 156/22.
3. Non-recurringevents detailed in the attachment to this material.
4. EBITDA adjusted for non-cash events arising from variation in the fair value of biological assets and combination of businesses, in addition to extraordinary events.
5. Pro forma Adjusted & Recurring EBITDA also including Dexco's share of the Recurring EBITDA arising from LD Celulose;
6. Current liquidity: Current assets divided by current liabilities. Indicates the amount available in R$ to cover each R$ of short-term obligations.
7. Net Corporate Debt: Total Financial Debt (-) Cash.
8. Financial leverage calculated on the rolling EBITDA over the last 12 months, adjusted for events of a purely accounting and non-cash nature.
9. ROE (Return on Equity): measure of performance obtained by taking the annualized Net Earnings over the period, annualized, and dividing by Average Net Equity.
10. Net earnings per share is calculated by dividing the earnings attributable to the company's shareholders by the average weighted number of ordinary shares issued during the

period, excluding the ordinary shares held by the Treasury.

2

4Q23 | 2023

MARKET SCENARIO

The macroeconomic uncertainties seen at the start of 2023 led to a significant drop in the markets in which Dexco operates, especially with respect to the Finishings sector. As the year progressed, markets began to recover, albeit at different rates of recovery. The panels market saw a steady, gradual recovery, supported by the sector's typical seasonality in the second half of the year, while the building materials sector continued to report a decline versus 2022.

The National Association of Ceramic Tiles Manufacturers (ANFACER) reported that sales in the Ceramic Tiles sector fell 7.9% versus 2022, while the Brazilian Association of the Construction Materials Industry (ABRAMAT) reported a 2.2% fall in gross and deflated revenue for that sector. Meanwhile, the Brazilian Tree Industry (IBÁ) reported that, while the panel market performed better than in 2022 during the second half of the year, this recovery was not enough to offset sales in the first six months of the year. Thus, the panels market closed out the year with a 2.7% drop in sales versus 2022.

The resilient performance of wood panels, coupled with the successful forestry transactions carried out, led the Wood Division to end 4Q23 with the highest quarterly Adjusted and Recurring EBITDA in its history, at R$438.8 million, with a margin of 33.8%, an increase of 50.8 % in the raw figure and of 10.6 p.p. in the margin versus 4Q22. The Division thus closed out the year with an increase of 18.1% in Adjusted and Recurring EBITDA, at R$1,400.5 million, with a margin of 29.0%.

The Finishings for Construction Division continues to be impacted by the shrinking market in which it operates, according to data from ANFACER and ABRAMAT. The challenging market scenario, together with the restructuring activities aimed at rebuilding market share, utilization rates and profitability over the medium and long term, significantly impacted the quarterly results, leading to an Adjusted and Recurring EBITDA for 4Q23 in the Metals and Sanitary Ware Division of negative R$26.1 million, and a yearly total of negative R$15.6 million. The Tiles Division, like the Metals and Sanitary Ware Division, reported a negative Adjusted and Recurring EBITDA of R$8.2 million in 4Q23. However, for the full year, the Adjusted and Recurring EBITDA was positive R$8.4 million.

LD Celulose continued to be fully operational in the fourth quarter, with a high level of utilization and progressing along the factory's productivity curve. However, this was not enough to offset the price decline and pressures on logistics costs seen in the period, which led to an Adjusted and Recurring EBITDA of R$320.6 million, with a margin of 53.6%, reductions compared to 3Q23 but still at healthy levels. If Dexco's 49.0% stake is included, Dexco's Adjusted and Recurring EBITDA should increase by R$156.7 million for 4Q23.

In 2023, the Company implemented significant changes aimed at to make adjustments to the new market reality after a couple of years of accelerated growth, amidst the challenges presented by the decline in the markets in which it operates. The resilience of the Wood Division was important, given the restructuring activities carried out by the Finishings Division, with a focus on the medium and long-term recovery of market share, utilization and productivity. The Company thus begins 2024 focused on maximizing the profitability of its operations and the discipline in controlling costs, expenses and investment. Meanwhile, it remains attentive to market movements, prepared to serve clients and consumers with the highest levels of service during this period of recovery.

3

4Q23 | 2023

Consolidated Financial Results GRI 3-3

NET REVENUE

The improvement seen in the Wood Division, arising from a quarterly increase in market share, the steady performance of the panels market, and the contributions from forestry transactions, were not enough to offset the challenging market scenario for the building materials sector as a whole, or the price repositioning initiatives in the Finishings Division. Dexco thus ended 4Q23 with a Net Revenue of R$1,948.7 million, a drop of 1.6% versus 4Q22.

	Net Revenue Breakdown
	4Q23 (%)
	10%
	Wood
23%	Metals and San. Ware
	Tiles
	67%

On a quarterly comparison versus 3Q23, the improvements reported in the Wood Division coupled with the improvement in the mix for Metals and Sanitary Ware arising from the seasonal decline in the sale of electric showers, more than offset the fall reported for Ceramic Tiles, with an overall increase of 10.2% in quarterly Net Revenue for the period.

	Net Revenue Breakdown
	2023 (%)
	12%
		Wood
23%		Metals and San. Ware
	65%	Tiles

Ongoing improvements in the panels market in the second half of the year and forestry transactions together were not enough to offset the overall adverse market conditions and the price

repositioning in the Finishings Division. Thus, the Company ended the year with Net Revenue of R$7,383.4 million, a fall of 13.0% versus 2022.

Regarding the foreign market, Dexco saw an increase of around 19.4% in export volumes in the quarter, with a 5.3% uptick in revenue from this channel versus 4Q22. This quarterly increase was insufficient to compensate for the drop in prior quarters, with the Company reporting a 19.5% decrease in volumes and 20.8% drop in Revenue for the full year versus 2022.

BRL '000 - consolidated	4Q23	4Q22	%	3Q23	%	2023	2022	%
Net Revenue	1,948,683	1,980,439	-1.6%	1,768,953	10.2%	7,383,409	8,486,650	-13.0%
Domestic market	1,636,794	1,684,108	-2.8%	1,473,803	11.1%	6,121,951	6,893,156	-11.2%
Foreign Market	311,889	296,331	5.3%	295,150	5.7%	1,261,458	1,593,494	-20.8%

EFFECT OF VARIATION IN THE FAIR VALUE OF BIOLOGICAL ASSETS

Since the end of 2022, Dexco has been readjusting the value of its biological assets, to reflect increases in the price of wood traded on the market. This quarter, the Fair Value of Biological Assets continued its upward trend but, with the price of wood starting to stabilize at these higher levels, the increase in value of the Fair Value of Biological Assets was 62.7% less compared to 4Q22 and 64.7% lessin relation to 3Q23. For the full year, the smaller surge in 4Q23 did not detract from the larger increases in the previous quarters, thus the full year Variation in the Fair Value of Biological Assets was R$768.6 million, 28.6% higher than for 2022.

On the other hand, the estimated devaluation of Biological Assets is reported as depletion. In the face of a scenario of increasing wood prices, depletion also increased during the period.

It should be noted that the price of market sales transactions is included in the valuation of biological assets, together with the productivity of the Company's forestry operations. The variation in the value of biological assets and depletion have no cash effect on Dexco's results.

4

4Q23 | 2023

COST OF GOODS SOLD

The Pro forma Cash Cost - cost of goods sold net of depreciation, amortization and depletion and of the net variation in biological assets - ended 4Q23 at R$1,176.5 million, a fall of 10.7% versus the same period in 2022, due to lower volumes sold and consequent reduction in variable costs. In addition, the figure benefited from a reduction in the costs of inputs for the Wood Division, which offset pressures arising from the temporary shutdowns to balance inventory levels in the Finishings Division. On a quarterly comparison versus 3Q23, the 2.0% increase arose from the quarterly improvement in panel volumes and shutdowns in the Finishings Division.

Dexco saw a drop off in Pro Forma Gross Income of 21.8%, mainly due to the fall in the Fair Value of Biological Assets coupled with greater depletion during the period arising from the forestry transactions carried out, which also led to a fall of 6.7 p.p. in Dexco's Pro Forma Gross Margin versus 4Q22.

For the full year, the Company reported a 14.2% fall in Pro Forma Cash Cost versus 2022. However, this fall, together with the effects of Variation in the Fair Value of Biological Assets, was not enough to offset the downturn in sales and depletion of biological assets. Thus, Dexco closed out the year with a Pro Forma Gross Income of R$2,476.7 million, with a Gross Margin of 33.5%, a decrease of 15.4% and 0.9 p.p. versus 2022, respectively.

BRL´000 - Consolidated	4Q23	4Q22	%	3Q23	%	2023	2022	%
Cash COGS	(1,178,027)	(1,350,872)	-12.8%	(1,224,330)	-3.8%	(4,722,035)	(5,439,979)	-13.2%
Non Recurring Event (1)	1,575	33,958	-95.4%	71,104	-97.8%	100,829	54,685	84.4%
Cash COGS Pro Forma	(1,176,452)	(1,316,914)	-10.7%	(1,153,226)	2.0%	(4,621,206)	(5,385,294)	-14.2%
Variation in fair value of biological assets	72,560	194,575	-62.7%	205,620	-64.7%	768,592	597,866	28.6%
Depletion of biological assets	(142,340)	(53,406)	N/A	(91,107)	56.2%	(383,413)	(169,808)	N/A
Depreciation, amortization and depletion	(195,759)	(156,657)	25.0%	(129,916)	50.7%	(670,686)	(602,942)	11.2%
Gross Profit	505,117	614,079	-17.7%	529,220	-4.6%	2,375,867	2,871,787	-17.3%
Recurring Gross Profit (1)	506,692	648,037	-21.8%	600,324	-15.6%	2,476,696	2,926,472	-15.4%
Gross Margin	25.9%	31.0%	-5.1 p.p.	29.9%	-4.0 p.p.	32.2%	33.8%	-1.7 p.p.
Recurring Gross Margin (1)(2)	26.0%	32.7%	-6.7 p.p.	33.9%	-7.9 p.p.	33.5%	34.5%	-0.9 p.p.

1. Non-recurringevents: 4Q23: Restructuring Tiles: (+) R$1.575k; 3Q23: Restructuring Tiles: (+) R$22.849k; Restructuring Deca: (+) R$24.111k; Closure Manizales (+) R$2.180k; Impairment (+) R$21.964k; 2Q23: Restructuring Deca: (+) R$28.150k; 4Q22: Impairment (+) R$27.357k; Restructuring Tiles: (+) R$6.601k; 3Q22: Restructuring Deca: (+) R$3.103k; Restructuring Tiles (+) R$11.462k; 2Q22: Restructuring Deca: (+) R$5.610k; Restructuring Tiles (+) R$552k; (2) Pro forma Gross Income / Pro forma Consolidated Net Revenue.

SALES EXPENSES

In 4Q23, the Finishings Division targeted investments in marketing activities aimed at building brands and growing sales in the medium and luxury segments of the market. In addition, the revision of freight tariffs in the Wood Division led to total Sales Expenses for the quarter of R$288.5 million, an increase of 21.3% versus 4Q22. As a result, Pro forma Sales Expenses saw quarterly growth of 20.7% versus 3Q23.

For the full year, significant spending in the Finishings Division, such as the repositioning of client inventory levels to increase sell out, greater investment in marketing, and the increase in freight tariffs, was more than offset by the decline in volumes during the period, which led to a 5.3% drop in Pro Forma Sales expenses versus 2022.

BRL´000 - Consolidated	4Q23	4Q22	%	3Q23	%	2023	2022	%
Sales Expenses	(288,475)	(255,059)	13.1%	(238,974)	20.7%	(1,042,414)	(1,119,741)	-6.9%
% of Net Revenue	14.8%	12.9%	1.9 p.p.	13.5%	1.3 p.p.	14.1%	13.2%	0.9 p.p.
Non-recurring events (1)	-	17,206	N/A	-	N/A	-	18,876	N/A
Recurring Sales Expenses (1)	(288,475)	(237,853)	21.3%	(238,974)	20.7%	(1,042,414)	(1,100,865)	-5.3%
% Recurring Net Revenue(1)	14.8%	12.0%	2.8 p.p.	13.5%	1.3 p.p.	14.1%	14.9%	-0.8 p.p.

1. Non-recurringevents: 4Q22: Restructuring Tiles (+) R$6,363k; Restructuring Deca (+) R$10,843k; 3Q22: Restructuring Deca (+) R$742k; Restructuring Tiles (+) R$701k; 2Q22: Restructuring Deca (+) R$227k.

5

4Q23 | 2023

GENERAL & ADMINISTRATIVE EXPENSES

General and Administrative Expenses closed out the quarter at R$93.4 million, 8.6% higher than for 4Q22, mainly due to investment in digitalization and process automation. The Company's diligent management of expenses is reflected in the 3.0% drop off in the cost of General and Administrative Expenses versus 3Q23.

Even with the quarter-on-quarter fall, salary increases and the investment in digitalization during the year took General and Administrative Expenses to R$367.5 million for 2023, an increase of 15.2% versus 2022.

BRL'000 - consolidated	4Q23	4Q22	%	3Q23	%	2023	2022	%
General and Administrative Expenses	(93,408)	(85,996)	8.6%	(96,322)	-3.0%	(367,490)	(319,075)	15.2%
% of Net Revenue	4.8%	4.3%	0.5 p.p.	5.4%	-0.7 p.p.	5.0%	3.8%	1.2 p.p.

EBITDA

The solid results for panels, with a quarterly increase in market share and greater dilution of fixed costs, added to the forestry transactions carried out, more than compensated the challenging market scenario and the restructuring activities in the Finishings Division, such as price repositioning and temporary factory shutdowns to reduce inventory levels. Dexco thus ended 4Q23 with an Adjusted and Recurring EBITDA of R$404.5 million, an increase of 10.5% versus 4Q22, with a margin of 20.8%. For the quarter, the figure was 40.5% up on 3Q23.

Including the 49.0% share of LD Celulose, Dexco's Adjusted and Recurring EBITDA totaled R$561.2 million. LD ended the fourth quarter of 2023 with a Recurring EBITDA of R$320.6 million, with a Margin of 53.6%. Of this total, R$156.7 million belong to to Dexco.

For the full year of 2023, the forestry transactions made during the year and the steady growth of panels in the second half of the year were not enough to offset the adverse market conditions and the impacts arising from the restructuring activities in the Finishings Division. Dexco thus ended 2023 with an Adjusted and Recurring EBITDA of R$1,393.2 million, with a margin of 18.9%, a 19.5% fall, and 1.5 p.p. fall in margin versus 2022.

In addition, given the Company's leverage levels, there was a focus on the sale of assets that do not contribute to operations. From this, R$34.1 million was recognized in non-recurring events arising from these extraordinary gains.

The table below shows the reconciliation of EBITDA, in accordance with CVM Instruction 156/22. From this result, and in order to better convey the Company's potential operating cash generation, two adjustments have been made: the exclusion from EBITDA of events of an accounting and non-cash nature, and the disregard of events of an extraordinary nature. Thus, in line with best practices, we present below the calculation of the indicator that best reflects the Company's cash generation potential.

6

4Q23 | 2023

EBITDA reconciliation in BRL'000 - consolidated	4Q23	4Q22	%	3Q23	%	2023	2022	%
Net income					195,433	217,868	-10.3%	304,125	-35.7%	811,270	764,922	6.1%
Income tax and social contribution		(106,686)	(61,859)	72.5%	(14,428)	N/A	(60,023)	152,623	N/A
Net financial result					150,487	177,021	-15.0%	(4,317)	N/A	518,407	531,678	-2.5%
EBIT					239,234	333,030	-28.2%	285,380	-16.2%	1,269,654	1,449,223	-12.4%
Depreciation, amortization and depletion	228,200	173,189	31.8%	154,521	47.7%	782,155	675,547	15.8%
Depletion of biological assets			142,340	53,406	166.5%	91,107	56.2%	383,413	169,808	N/A
EBITDA according to CVM Resolution 156/22	609,774	559,625	9.0%	531,008	14.8%	2,435,222	2,294,578	6.1%
EBITDA margin CVM Resolution 156/22		31.3%	28.3%	3.0 p.p.	30.0%	1.3 p.p.	33.0%	27.0%	5.9 p.p.
Change in fair value of biological assets		(72,560)	(194,576)	-62.7%	(205,619)	-64.7%	(768,592)	(597,867)	28.6%
Effect of variation in the Fair Value of Biological Assets - Caetex	-	-	N/A	-	N/A	-	11,420	N/A
Employee benefits					(756)	(8,643)	-91.3%	2,247	N/A	2,181	(8,928)	N/A
Non-Recurring events	(1)			(42,017)	51,164	N/A	17,421	N/A	1,738	84,979	-98.0%
Dissolving Wood Pulp				(89,973)	(41,435)	N/A	(57,115)	57.5%	(277,320)	(52,531)	N/A
Adjusted and Recurring EBITDA	(1)		404,468	366,135	10%	287,942	40.5%	1,393,229	1,731,651	-19.5%
Adjusted and Recurring EBITDA margin	(1)	20.8%	18.5%	2.3 p.p.	16.3%	4.5 p.p.	18.9%	20.4%	-1.5 p.p.
Adjusted and Recurring EBITDA - Pro Forma (including Dexco's	561,193	516,856	8.6%	461,078	21.7%	2,006,610	1,925,785	4.2%
part in LD Celulose)	(2)

1. Non-recurringevents detailed in the addendum to this report; (2) Pro forma Adjusted and Recurring EBITDA also includes the Dexco portion of the Recurring EBITDA from LD Celulose.

FINANCIAL RESULTS

For the fourth quarter, the Pro Forma Financial Result was negative R$150.5 million, a fall of R$29.5 million versus the same period in the prior year, helped by the reduction in the accumulated CDI from 3.20% in 4Q22 to 2.83% in 4Q23.

For the full year 2023, the financial result was R$697.7 million, an increase of 30.8% versus 2022. The main impacts arose from debt payments, which increased R$161 million versus the prior year.

BRL'000 - consolidated	4Q23	4Q22	%	3Q23	%	2023	2022	%
Financial Revenues	113,037	116,829	-3.2%	256,037	-55.9%	543,003	384,391	41.3%
Financial Expenses	(263,524)	(293,850)	-10.3%	(251,720)	4.7%	(1,061,410)	(916,069)	15.9%
Financial Result	(150,487)	(177,021)	-15.0%	4,317	N/A	(518,407)	(531,678)	-2.5%
Non-recurring events (1)	-	(3,059)	N/A	(179,274)	N/A	(179,274)	(1,557)	N/A
Recurring Financial Revenues(1)	113,037	113,770	-0.6%	76,763	47.3%	363,729	381,332	-4.6%
Recurring Expenses Revenues(1)	(263,524)	(293,850)	-10.3%	(251,720)	4.7%	(1,061,410)	(914,567)	16.1%
Recurring Financial Result(1)	(150,487)	(180,080)	-16.4%	(174,957)	-14.0%	(697,681)	(533,235)	30.8%

1. Non-recurringevent: 3Q23: Revenue: update of the ICMS base for PIS and COFINS (-) R$183,712k; PIS and COFINS on SELIC ICMS interest in the base (+) R$4,438k; 4Q22: Revenue: Interest on extemporaneous credit (-) R$3,059k; 1Q22: Expense: payment of compensation (+) R$1,502k.

NET INCOME

Recurring Net Income for 4Q23 came in at R$77.5 million, with a recurring ROE of 5.0%, a drop of 62.6% versus 4Q22. The improved results from operations in the Wood Division and the financial result could not offset the impacts from a fall in the Fair Value of Biological Assets, with the price of wood stabilizing at higher levels and the level of depletion during the period. Combined, these effects led to a 18.3% fall in Recurring Net Income versus 3Q23.

In addition, it should be noted that the R$90.2 million resulting from LD Celulose in the quarter has been added to the Company's Recurring Net Income, using equity equivalence. This operation thus partially offsets the impacts from adjustments to Dexco's biological assets. The Pro forma Recurring Net Income was thus R$167.7 million for the quarter, a drop of 32.5% versus 4Q22, albeit there was 10.2% increase on a quarterly basis.

For the full year 2023, Recurring Net Income came in 51.9% below that of 2022, ending the year at R$370.9 million, with Recurring ROE of 6.0%, reflecting a drop off in results and the more significant negative impact of depletion. LD Celulose's earnings for the period were not enough to compensate for the above, and thus Pro forma Recurring Net Income was R$649.0, 21.3% lower than 2022.

7

4Q23 | 2023

BRL'000 - consolidated	4Q23	4Q22	%	3Q23	%	2023	2022	%
Net Income					195,433	217,868	-10.3%	304,125	-35.7%	811,270	764,922	6.1%
Non recurring event	(1)		(27,731)	30,708	N/A	(151,971)	-81.8%	(162,321)	59,242	N/A
Dissolving Wood Pulp		(90,208)	-41,621	N/A	(57,348)	57.3%	(278,011)	(53,082)	N/A
Recurring Net Income	(1)	77,494	206,955	-62.6%	94,806	-18.3%	370,938	771,082	-51.9%
Recurring Net Income - Pro Forma (including Dexco's part in	167,702	248,576	-32.5%	152,155	10.2%	648,950	824,164	-21.3%
LD Celulose)	(2)
ROE					12.5%	14.7%	-2.1 p.p.	19.2%	-6.7 p.p.	13.0%	12.9%	0.1 p.p.
Recurring ROE	(1)			5.0%	13.9%	-9.0 p.p.	6.0%	-1.0 p.p.	6.0%	13.0%	-7.0 p.p.

(1) Non-recurring events detailed in the addendum to this material; (2) Pro forma Recurring Net Income also includes the Dexco portion of the Recurring EBITDA from LD Celulose.

CASH FLOW GRI 201-1

Dexco closed out 4Q23 with positive Sustaining Cash Flow of R$256.8 million, reaffirming the Company's careful management of Working Capital and the proactive strategy of balancing inventory levels in the Finishings Division, among other initiatives. These gains were more than enough to cover the amounts invested in projects during the period, with the Company generating a total positive cash flow of R$68.2 million.

Aware of the levels of leverage seen in the previous quarter, the Company devoted its best efforts to Working Capital initiatives, in order to generate cash in 4Q23. One example of this was the balancing of inventories in the Finishings Division, achieved through temporary factory shutdowns, which, given a shrinking market scenario, boosted the generation of Working Capital in the period. Dexco thus ended 4Q23 having generated R$421.3 million in Working Capital, on the back of a strong quarter, with a quarterly drop of 5.5 p.p. in Working Capital/Net Revenue, at 12.2% desconsidering one-off effects in the quarter.

With respect to project investment, the Company remains disciplined in carrying out the Investment Cycle announced in 2021, which, added to investment in other one-off projects, led to total expenditure of R$188.6 million in 4Q23.

For the full year, effective Working Capital management and due diligence with respect to CAPEX more than offset the increase in expenditure related to debt servicing reflected in the Financial Flow. Dexco thus closed out the year with sustaining free cash generation of R$362.9 million. This improvement contributed to ongoing investment in the 2021-2025 Investment Plan, which led to total free cash flow consumption of R$329.9 million in the period.

BRL '000	4Q23	4Q22	%	3Q23	%	2023	2022	%
Adjusted and Recurring EBITDA	404.7	366.1	10.5%	287.5	40.7%	1,393.2	1,732	-19.6%
CAPEX Sustaining	(246.7)	(259.1)	-4.8%	(183.2)	34.7%	(711.5)	(864)	-17.6%
Financial Flow	(296.3)	(207.2)	43.0%	(58.7)	404.7%	(686.9)	(303)	N/A
Income tax and social contribuition paid	(26.2)	(24.8)	5.6%	(9.6)	171.9%	(79.1)	(132)	-40.1%
Working Capital	421.3	70.2	N/A	127.0	N/A	446.9	(470)	N/A
Free Cash Flow Sustaining	256.8	(54.5)	N/A	163.2	N/A	362.9	(37)	N/A
Projects (1)	(188.6)	(142.6)	32.2%	(192.7)	-2.1%	(692.9)	(823)	-15.8%
Free Cash Flow Total	68.2	(197.2)	N/A	(29.4)	N/A	(329.9)	(859)	N/A
Cash Convertion Ratio(2)	63.5%	N/A	N/A	56.8%	6.7 p.p.	26.1%	N/A	N/A

1. Projects: 4Q23: Factory debottlenecking and forestry expansion (-) R$15.9 million, Deca productivity, mix improvement and automation projects (-) R$58.2 million, New Ceramic Tiles factory (-) R$88.2 million, Other Projects (-) R$23.1 million, DX Ventures (-) R$3.3 million; 3Q23: factory debottlenecking and forestry expansion (-) R$14.0 million, Deca productivity, mix improvement and automation projects (-) R$54.6 million, New Ceramic Tiles factory (-) R$112.2 million, Other Projects (-) R$11.8 million; 2Q23: Factory debottlenecking and forestry expansion (-) R$10.5 million, Deca productivity, mix improvement and automation projects (-) R$51.1 million, New Ceramic Tiles factory (-) R$83.6 million, DX Ventures: (-) R$16.6 million, Other Projects: (-) R$8.8 million; 1Q23: Factory debottlenecking and forestry expansion (-) R$12.8 million, Deca productivity, mix improvement and automation projects (-) R$20.9 million, New Ceramic Tiles factory (-) R$15.6 million, Other Projects (-) R$17.9 million, DX Ventures (-) R$73.8 million; 4Q22: : Factory debottlenecking and forestry expansion (-) R$21.3 million, Deca productivity, mix improvement and automation projects (-) R$22.1 million, New Ceramic Tiles factory (-) R$20.7 million, Dissolving Wood Pulp (-) R$ R$64.5 million, Other Projects (-) R$15.1 million; 3Q22: Factory debottlenecking and forestry expansion (-) R$24.7, Deca productivity, mix improvement and automation projects (-) R$45.8 million, New Ceramic Tiles factory (-) R$86.3 million; Other Projects (-) R$15.6 million; 2Q22: Dissolving Wood Pulp (-) R$153.6 million, Cecrisa acquisition (-) R$10.7 million, Factory debottlenecking and forestry expansion (-) R$29.5 million; Deca productivity, mix improvement and automation projects (-) R$44.8 million, New Ceramic Tiles factory (-) R$60.7 million; 1Q22: DX Ventures (-) R$9.2 million, Dissolving Wood Pulp R$ (-) R$93.3 million, Castelatto acquisition (-) R$103.6 million, Sale of assets (-) R$6.3 million, Factory debottlenecking and forestry expansion (-) R$22.2 million Deca productivity, mix improvement and automation projects (-) R$3.2 million, New Ceramic Tiles factory (-) R$22.3 million;
2. Cash Conversion Ratio: Free Sustaining Cash Flow / Adjusted and Recurring EBITDA.

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4Q23 | 2023

CORPORATE DEBT

The Company ended the year with consolidated gross debt of R$7,121.8 million, an increase of 22.6% versus the prior year, and Net Debt of R$4,336.4 million, an increase of 7.4% versus 2022.

On a quarterly comparison, there was a 7.9% reduction in Net Debt, explained by the effective cash generation initiatives carried out in the quarter. In addition, the improvement in results driven by the Wood Division also supported the quarterly reduction in leverage of 0.36x, which ended the period with Net Debt/Adjusted and Recurring EBITDA at 3.1x.

Continuing the liability management strategy, in 4Q23 the Company completed the successful issue Agribusiness Receivables Certificates (CRA) to the amount of R$1.5 billion, with a final maturity of 10 years, which contributed to the 1.1 years extension to the Company's average payment term. In addition, in January 2024, a timely CRA was issued for the total amount of R$375.0 million, at a cost of approximately 108.5% of CDI, maturing in 10 years. This funding will help extend the Company's average payment term by 0.3 years and also strengthens Dexco's commitment to its debt servicing.

The average cost of financing closed out the period at 108.9% of CDI, a fall of 3.1 p.p. on a quarterly basis, with average maturity of 4.5 years.

3,535 750

2,785

1,228

927

1,061

1,023

Cash Position	2024	2025	2026	2027
BRL'000 - Consolidated
Short-Term debt
Long-Term debt
Financial instruments
Total debt
Cash and equivalent
Net debt
Net debt/Adjusted and Recurring EBITDA
Net debt/Equity (in %)

			Gross corporate debt - 4Q23 (%)
	2,284
			17%
				Short term
599
				Long term
		83%
2028	2029 and after
12/31/2023	12/31/2022	Δ BRL	09/30/2023	Δ BRL
1,091,758	761,916	329,842	1,344,552	(252,794)
5,872,773	4,837,703	1,035,070	4,733,207	1,139,566
	157,274	210,251	(52,977)	246,634	(89,360)
7,121,805	5,809,870	1,311,935	6,324,393	797,412
2,785,454	1,771,730	1,013,724	1,618,527	1,166,927
4,336,351	4,038,140	298,211	4,705,866	(369,515)
	3.11	2.33		3.47
	66.5%	67.7%	-1.2 p.p.	72.2%	-5.8 p.p.

STRATEGIC MANAGEMENT & INVESTMENT

Dexco ended 4Q23 with a total investment of R$246.7 million in its operations, of which R$112.4 million related to the rebuilding of forestry assets and R$134.3 million allocated to maintenance, factory modernization and digitalization. Throughout the year, confirming diligent investment management, the total amount invested in sustaining capital expenditures (capex) was R$ 711.5 million, representing a reduction of 17.6% compared to 2022 and 17.7% compared to the guidance published via Material Fact on August 2, 2023, without compromising operational efficiency.

Also, in 2Q23 Dexco announced the conclusion of the 2021-2025 Investment Cycle, which reduced the estimate by R$300.0 million, total expenditure thus being R$1.8 billion. For the review, the initial principles

9

4Q23 | 2023

of improving the mix across all divisions, optimizing assets with high returns and driving innovation in the sector were all maintained.

The Company has thus remained disciplined in executing projects, investing R$188.6 million in the quarter, with R$165.5 million dedicated to the 2021-2025 Cycle:

1. Wood Division: R$10.3 million invested in factory debottlenecking and mix improvement initiatives, with R$5.6 million allocated for forestry expansion in the Northeast;
2. Metals and Sanitary Ware Division: R$58.2 million allocated for productivity projects, mix improvement and automation of Sanitary Ware;
3. Ceramic Tiles Division: R$88.2 million in progressing construction of the new Ceramic Tiles unit in Botucatu (SP);
4. Corporate Venture Capital, the DX Ventures: R$3.3 million

As part of the 2021-2025 investment cycle and other projects, R$692.9 million was spent during the year. If recurring investment related to the rebuilding of forestry assets, maintenance, factory modernization and digitalization are included, Dexco made a total investment of R$1,404.3 million in 2023.

Finally, the Company reiterates its focus on capturing the profitability of projects and leveraging the value generation potential of its operations.

				Δ% 2023	2023	Δ% 2023
				Actual vs.	Actual vs.
(BRL '000)	2023 Actual	2022	2022	1	Guidance
Guidance
Forestry OPEX	368.2	430.3	-14.4%	485.8	-24.2%
Maintenance	343.3	381.6	-10.0%	378.4	-9.3%
CAPEX Sustaining	711.5	863.7	-17.6%	864.2	-17.7%
Projects	2	692.9	412.7	67.9%	778.0	-10.9%
Total CAPEX	1,404.3	1,276.4	10.0%	1,600.0	-12.2%

(1) Guidance published in Material Factof August 2, 2023; (2) Only strategic projects are considered.

10