Ecorodovias Infraestrutura e Logistica S A : 2023 Integrated Report

Integrated Report

2023

Contents

Cover photo

The Rio-Niterói Bridge completes 50 yeas in 2024 and, therefore, features on the cover of the 2023 Integrated Report. A landmark in Brazilian engineering, the Bridge was the first asset granted in the country and, since June 2015, it has been managed by Ecoponte.

04 Vision & Strategy

1. Message from the CEO

1. Highway concessions: a path to development

12 2030 ESG Agenda:

On the Paths to Sustainability

15 Business Model

17 Where we are

24 Corporate governance

1. Risk management and controls

1. ESG Management

1. Innovation and digital transformation

45 2023 Highlights

48 Operational and financial performance

50 Environment

1. Climate strategy

1. Biodiversity

1. Circular economy

61 Social62 Safety

1. Human capital and diversity

1. Relationship with communities

84 Governance

1. Ethics, transparency and integrity

1. Sustainable procurement

1. Data protection and security

92 Reporting Guidance

95 Materiality Matrix

99 Annexes99 Complement to GRI disclosures and additional indicators

106 GRI content index

111 TCFD content index

112 Assurance Report

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Integrated Report	Vision &
2023	Strategy

Business Model

2023 Highlights

Environment

Social

Governance

Reporting Guidance

Annexes

Vision

& Strategy

• Message from the CEO
• Highway concessions: a path to development
• 2030 ESG Agenda:
  On the Paths to Sustainability

Integrated	SDG	3 4 5 8 9 10 11 12 13 15 16	4
Report
Capitals	Social Intellectual Manufactured Financial Natural Human

Integrated Report	Vision &	Business Model	2023 Highlights	Environment	Social	Governance	Reporting Guidance	Annexes
2023	Strategy

Vision

To be Brazil's best infrastructure manager, with sustainability

Mission

To create value by employing highway assets in a sustainable, synergistic, ethical and innovative manner

Values

Collaboration

Synergy and cooperation among people and teams in building solutions

Ethics

Integrity, transparency and fairness in relations and operations, with plurality and diversity

Focus on Results

Excellence, planning, commitment, efficiency and synergistic business model in the pursuit of sustainable results

Initiative

Leadership, innovation and creativity to achieve outstanding results that add value

Sustainability

Attitudes that seek long-term economic growth, respect for the environment and contribution to the development of employees

and society

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Integrated Report	Vision &	Business Model	2023 Highlights	Environment	Social	Governance	Reporting Guidance	Annexes
2023	Strategy

Strategy

Our strategy for operating and generating value is guided by a plan that covers a five- year horizon, annually reviewed to strengthen competitiveness and keep up with new trends and changes in the scenario. Guided by the Board of Directors and led by the Statutory Board, our 2021-2025 strategic planning has the following drivers:

Focus on highway concessions in Brazil

Excellence in investment portfolio execution and sustainable growth while respecting minimum return rates

Focus on innovation and digital transformation towards operational excellence

and new technologies

ESG (Environmental, Social and Governance) permeating the entire organization

People that are competent, diverse, motivated, collaborative, and ready to take the lead

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Integrated Report	Vision &	Business Model	2023 Highlights	Environment	Social	Governance	Reporting Guidance	Annexes
2023	Strategy

Message from the CEO

In 2023, EcoRodovias reached an unprecedented financial and operational level. With the entry of three new concessions in the last two years (EcoRioMinas, Ecovias do Araguaia and EcoNoroeste), we materialized our growth strategy, with selectivity, portfolio duration increase and commitment to the development of Brazilian road infrastructure. Thus, we ended the year with record results, highlighted by: adjusted net revenue of

R$ 5.4 billion, adjusted EBITDA of R$ 3.9 billion (an increase of almost 70%) and recurring net profit of R$ 777.2 million.

This solid growth came at a challenging macroeconomic time. The first half of the year was marked by a restrictive scenario

for credit granting in the country. Even so, due to our history of commitment to the goals set, operational resilience and excellence n costs control and project execution, we raised funds through debentures worth R$ 7.6 billion in 2023, necessary for the continuity of investment plans.

In 2023, we invested R$ 4.2 billion, demonstrating the capacity to execute and deliver works in the Company's growth cycle, as well as the commitment to maintaining our highways.

In the second half of the year, we began to benefit from the positive performance of new assets and mature concessions. Our portfolio of highway concessions, distributed across important industrial and agribusiness centers in Brazil, drives the generation of financial value from a resilient traffic flow, high operational capacity and innovation aimed at efficiency, thus creating a virtuous cycle for investment and selective capital allocation in a sustainable business model.

Safety is our highest priority in the management of all assets. By investing in the recovery of pavements, duplication of highways, signaling and installation of barriers and fenders, we aim to reduce the number of accidents involving users. At the same time,

we have sought to increase safety conditions and reduce risks to our employees and third parties.

Marcello Guidotti

Chief Executive Officer at EcoRodovias

Between 2022 and 2023, our investments reached R$ 7.2 billion and provided the duplication of important highway stretches, the recovery of pavements, and other works that increase fluidity and safety for all users who travel in our concessions

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Integrated Report	Vision &	Business Model	2023 Highlights	Environment	Social	Governance	Reporting Guidance	Annexes
2023	Strategy

In addition to engineering solutions, we invest in initiatives and training so that our professionals understand the risks inherent to our business model and act proactively to avoid them. Therefore, an important step we took was to carry out a diagnosis of the culture and security management model. Based on this, we developed a strategic plan, to be implemented between 2024 and 2026, with clear goals and objectives and in which all leaders and their teams will be dedicated to transforming the safety culture at EcoRodovias.

With a focus on increasing the safety of professionals working on highways, we joined the "Movimento Afaste-se", carried out in conjunction with other concessionaires, to

Another evolution that is already underway in our Company is that of innovation and digital transformation. New technologies have great potential to increase safety, operational efficiency, cost optimization and convenience for road users. This is a front on which important results have already been harvested.

We were pioneers in the implementation of system testing for weighing trucks at highway speeds (HS- WIM - High Speed Weight in Motion). This solution, tested throughout 2023 at Ecovias do Cerrado, makes it possible for 100% of heavy vehicles to be checked without the need to build a station for the physical scale and deceleration and acceleration lanes. Hence, we eliminate queues and reduce brake wear and the burning of fossil fuels by these vehicles, which results

in reduced greenhouse gas emissions. In this way, we will continue to avoid overweight truck traffic, which can cause accidents or damage the highway, in a more efficient and sustainable way.

On the collection front, we were the first highway concession operator to use an automated and smart system to identify heavy vehicles with suspended axles, even when loaded. The technology consults official databases and informs toll operators regarding the existence of an open Electronic Manifest of Tax Documents (MDF-e), enabling the full collection of the axles as established by the legislation. Thus, we prevent fraud and act to ensure the due collection of these vehicles, ensuring the benefit of equity to all users of our highways.

raise awareness among drivers about the importance of changing lanes or slowing down when they see a service being carried out. by highway rescue teams.

New technologies and digital transformation drive gains in security, efficiency, cost optimization and convenience for users

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Integrated Report	Vision &	Business Model	2023 Highlights	Environment	Social	Governance	Reporting Guidance	Annexes
2023	Strategy

Internally, our Digital Transformation Program has driven a culture of innovation and the development of new systemic solutions. Digital HR, for example, was the project that recently implemented a tool to provide more agility and efficiency to people management in a Company with a geographic capillarity as diverse and distributed as that of EcoRodovias.

Innovating is one of the ways to anticipate the rapid and constant changes of our time, to find solutions so that EcoRodovias maintains its ability to generate value and deliver tangible benefits for society as a whole.

In this sense, to better guide our sustainability actions in the medium and long term, we began structuring our ESG Agenda in 2023. Approved in 2024 by the Board of Directors, the

ESG Agenda includes 10 pillars - our Sustainability Pathways, on the which we will work to jointly improve our social, environmental and governance performance. We set corporate goals and made new commitments, with the aim of also engaging suppliers and employees, educating and training leaders and updating internal processes.

When it comes to, for example, the Climate Strategy Sustainability Pathway, managing our emissions is just the first part of responding to the global demand for less carbon-intensive business models.

Therefore, we must go further and find effective answers, such as investing in photovoltaic panels that generate renewable energy for our toll plazas, a circular economy in the maintenance of our highways and electric chargers for users. A work that will be further strengthened from 2024 onwards, when

we will deepen the construction of a business adaptation plan to climate change, considering future scenarios and action plans to respond to the risks and opportunities mapped on this front.

With the defined strategy of the ESG 2030 Agenda, solid corporate governance established and management of socio-environmental risks and opportunities, we believe in longevity and the creation of value in our businesses.Sustainability is one of the values we practice every day at EcoRodovias. It is part of Our Eco Way of Being and, from now on, it will be even stronger, so that we can open new paths and connect people to a future with more prosperity and development.

Enjoy your reading.

Marcello Guidotti

Chief Executive Officer at EcoRodovias

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Integrated Report	Vision &	Business Model	2023 Highlights	Environment	Social	Governance	Reporting Guidance	Annexes
2023	Strategy

Highway concessions: a path to development

In 2023, Brazil celebrated the 30th anniversary of the beginning of the highway concession program. The first asset granted was the Rio-Niterói Bridge, managed by Ecoponte since June 2015. During these three decades, according to data from the Brazilian Association of Highway Concessionaires (ABCR), the total network granted increased to 28 thousand kilometers, considering federal, state and municipal roads.

The investments made in these concessions in recent years have transformed the reality of the country's road infrastructure. The first and most direct benefit of this policy is road safety. A study carried out by the National Transport Confederation (CNT) in 2023 pointed out, for example, that the mortality rate on federal highways granted drop by 60% between 2010 and 2021.

The consolidated highway concession model in Brazil also links the revenue of the managed companies to the improvement of their performance. This drives efficiency and governance gains, stimulating the search for innovations and higher levels of user satisfaction.

1. Partnerships: the provision of transport infrastructure by the private sector: highways. - Brasilia: CNT, 2023

28

thousand km

are currently managed

by the private sector under the highway concession model in the country

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