Dexco S A : Results Presentation 4Q22

Results Presentation 4Q22 / 2022

March 9, 2023

Disclaimer

The information herein has been prepared by Dexco S.A. and does not represent any form of prospectus regarding the purchase or subscription to the company's shares or securities.

This material contains general information relating to Dexco and the markets in which the company operates.

No representation or guarantee, expressed or implied, is made herein, and no reliance should be placed on the accuracy, justification or completeness of the information provided.

Dexco does not offer any assurances or guarantees regarding the fulfilment of expectations described.

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Organizational Structure

Executive Committee

President

Antonio Joaquim

de Oliveira

Director

Director

Director of Admin,

Director of

Director of

Director of

Vice-president of

Vice-president

Finance &

IT & Growth

People & ESG

Marketing &

Wood Division

Deca & Tiles

Investor Relations

Design

Henrique Haddad

Raul Guaragna

Francisco Semeraro

Daniel Franco

Glizia Prado

Marina Crocomo

1 | Relevant fact announced by Dexco on January 24, 2023.	3

Headlines

4Q22/20224

Pro-forma Adjusted & Recurring EBITDA of R$1.927 M in 2022, including the 49% of LD Celulose's

EBITDA

• Market shrinking which has impacted results, in particular, the Finishings For Construction sector;
• Pricing and product mix sustaining revenue levels for the year, despite the fall in 4Q22;
• EBITDA of R$517million in 4Q22, including the 49% of LD
  Celulose's EBITDA;
• LD Celulose operating at full capacity, with Recurring EBITDA of R$307 million and Margin of 56%, in 4Q22, with Dexco's part being R$151 million.

Recurring Net Revenue	Recurring Net Income	Adjusted & Recurring EBITDA
and GrossMargin	and Margin
R$ million / %	R$ million	R$ million / %

+4%

-33%

-12%			8,487	-49%		588
		8,170		517
2,251			1,148
1,980			407		151
				771
35.1%	31.0%	35.1%	33.8%	207		366
	26.1%
							18.5%

2,188 1,927

	194
	1,732
26.8%	20.4%

4Q21

4Q22

2021

2022

4Q21

4Q22

4Q21

4Q22

2021

2022

2021

2022

Net Revenue

Gross

Adjusted &

Adjusted & Recurring

EBITDA

Margin %

Recurring

EBITDA

Margin %

EBITDA - LD

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Celulose

Cash Flow

2022

Working Capital/Net Revenue continues at low levels (~16%)

Free Cash Flow YTD

• Stabilization of cash flow following a significant fall in 2021;
• Focus on the reforestation process driving Sustaining Capex;
• Final contributions for ramping up LD Celulose of R$312 million;
• Confirmation of investment in projects in 2022, including:
• • R$190 million: New ceramic tiles unit in SP;
  • R$116 million: Productivity projects, improvement in the mix and Deca automation;
  • R$98 million: Improvement to the panels mix, factory debottlenecking and forestry expansion.

Cash Conversion Cycle

R$ million												Days							2021			2022
2,188					2021			2022										152
															97
1,732										50	48		99	96			47
									901														-3
												PMR Client	PME Inventory	PMP Suppliers	Cash Convertion
											425	CAPEX
								0
				(74)			(21)	(37)			R$ million
		(123)	(132)
							Investments		4Q21	4Q22		2021	2022
		(303)	(380)
	(690)(864)		(470)		(475)			FORESTRY OPEX		141	101				296	430
									(823)	(859)		MAINTENANCE		149	158				394	382
Recurring	Sustaining	Financial	Tax		Working	Other	Sustaining	Projects¹	FCL		Sustaining CAPEX²	291	259				690	864
		PROJECTS ³		296	148				475	823
EBITDA	CAPEX	Flow			Capital		FCL		Total

1 - Projects, DX Ventures, LD Celulose, non-recurring payments and receivables | 2 - Factory maintenance and modernization and ongoing running of the business | 3 - Projects, DX Ventures, M&A and LD Celulose	5