Fleury S A : Demonstrações Financeiras em Padrões Internacionais - Versão em Inglês

Contents
Individual and consolidated financial statements
Balance sheet	2
Statement of income and comprehensive income	3
Statement of changes in shareholders' equity	5
Statement of cash flows	6
Statement of added value	7
Notes to the individual and consolidated financial statements
1.	Operations	8
2.	Presentation of the financial statements	8
3.	Business combination	10
4.	Risk management	14
5.	Cash and cash equivalents	17
6.	Securities	18
7.	Accounts receivable	18
8.	Inventories	19
9.	Recoverable taxes	19
10.	Other assets	20
11.	Investments	20
12.	Property, plant and equipment and intangible assets	21
13.	Right-of-use	24
14.	Loans and financing	25
15.	Debentures	26
16.	Lease	27
17.	Suppliers	28
18.	Labor obligations	28
19.	Tax liabilities	29
20.	Accounts payable - Acquisition of companies	30
21.	Other liabilities	31
22.	Current and deferred income tax and social contribution	31
23.	Provision for tax, labor and civil risks	32
24.	Related parties	35
25.	Shareholders' equity	37
26.	Employee benefits	39
27.	Revenue from rendering of services	40
28.	Cost of services rendered	41
29.	General and administrative expenses	41
30.	Commercial expenses	42
31.	Other operating revenues (expenses), net	43
32.	Financial income (loss)	43
33.	Earnings per share	44
34.	Information per business segment	45
35.	Insurance coverage	46

1

Balance sheet

In thousands of reais - R$

					Parent Company		Consolidated
Assets		Note	06/30/2023	12/31/2022	06/30/2023	12/31/2022
Current assets
Cash and cash equivalents	5			6,029	9,121	31,512	17,256
Securities	6			634,505	1,174,965	879,132	1,292,234
Accounts receivable		7			820,142		701,549		1,486,024		856,849
Inventories	8			64,575	68,994	132,464	96,576
Recoverable taxes		9			11,342		12,797		18,671		14,757
IRPJ and CSLL recoverable					72,075	52,102	112,671	62,265
Assets held for sale					-	-	-	14,968
Other assets	10			46,501	29,378	77,103	36,499
Total current assets					1,655,169	2,048,906	2,737,577	2,391,404
Long-term assets
Securities	6			32,979	32,473	117,963	121,641
Deferred income tax and social contribution	22			-	-	55,901	48,624
Judicial deposits	23			18,078	17,764	25,124	24,160
Other accounts receivable	7			-	-	3,060	-
Other assets	10			15,710	15,938	52,053	53,765
Total long-term assets					66,767	66,175	254,101	248,190
Investments	11			3,907,851	1,634,014	66,428	44,080
Property, plant and equipment	12			810,170	833,379	1,351,334	925,883
Intangible assets	12			2,161,881	1,748,954	5,768,121	3,159,926
Right-of-use	13			922,870	919,503	1,332,423	1,022,287
Total non-current assets					7,869,539	5,202,025	8,772,407	5,400,366
Total assets					9,524,708	7,250,931	11,509,984	7,791,770
Liabilities and shareholders' equity
Current liabilities
Loans and financing	14			5,979	12,051	463,884	12,838
Debentures	15			90,695	348,081	90,695	348,081
Lease	16			173,169	153,133	269,893	174,900
Suppliers	17			277,325	283,544	591,270	364,268
Labor obligations	18			203,958	204,575	328,937	227,600
Tax liabilities	19			33,353	23,338	70,035	40,812
Income tax and social contribution payable					-	327	10,529	7,110
Accounts payable - Acquisition of companies	20			12,562	24,786	138,754	40,337
Interest on own capital and dividends payable					74	80	74	219
Other liabilities		21			13,617		13,651		28,408		17,969
Total current liabilities					810,732	1,063,566	1,992,479	1,234,134
Non-current liabilities
Debentures	15			2,199,092	2,198,917	2,199,092	2,198,917
Loans and financing	14			-	-	287	-
Lease	16			842,882	856,468	1,191,850	943,349
Deferred income tax and social contribution	22			485,378	366,215	570,569	397,589
Provision for tax, labor and civil risks	23			13,678	16,563	109,665	29,087
Tax installments	19			2,329	4,024	15,466	8,708
Accounts payable - Acquisition of companies	20			75,237	63,642	319,414	276,326
Other liabilities	21			-	-	2,578	2,575
Total non-current liabilities					3,618,596	3,505,829	4,408,921	3,856,551
Shareholders' equity
Capital		25.a	2,735,982	1,717,222	2,735,982	1,717,222
Capital reserve		25.a	1,915,374	603,212	1,915,374	603,212
Profit reserves
Investment reserve		25.c	37,619	45,166	37,619	45,166
Legal reserve					148,616		148,616		148,616		148,616
Retained earnings					24,838	187,291	24,838	187,291
Income for the period					168,280		-		168,280		-
Equity valuation adjustments		25.a	73,884	-	73,884	-
Treasury shares		25.b	(9,213)	(19,971)	(9,213)	(19,971)
Shareholders' equity of controlling shareholders					5,095,380	2,681,536	5,095,380	2,681,536
Non-controlling interest					-	-	13,204	19,549
Total shareholders' equity					5,095,380	2,681,536	5,108,584	2,701,085
Total liabilities and shareholders' equity					9,524,708	7,250,931	11,509,984	7,791,770

See the accompanying notes to the financial statements.

2

Statements of income and comprehensive income Periods ended

In thousands of reais - R$, except income per share

Revenue from rendering of services

Cost of services rendered

Gross income

Operating (expenses) revenues

General and administrative

Commercial expenses

Other operating revenues (expenses), net

Equity method and realization of fair value

Operating income before financial income (loss)

Financial revenues

Financial expenses

Financial income (loss)

Income before income tax and social contribution

Income tax and social contribution

		Parent Company		Parent Company
		Three-month period		Six-month period
		June 30,			June 30
Note	2023			2022	2023	2022
27		1,003,123			932,207	2,007,378	1,866,903
28		(709,375)			(663,951)	(1,407,923)	(1,297,213)
		293,748			268,256	599,455	569,690
29		(167,946)			(90,305)	(279,969)	(168,001)
30		(10,275)			(8,864)	(18,334)	(16,887)
31		451			6,242	(5,068)	8,565
11		43,367			6,868	64,295	12,114
		159,345			182,197	360,379	405,481
32		27,397			17,589	64,712	35,136
32		(111,255)			(103,137)	(233,198)	(184,503)
		(83,858)			(85,548)	(168,486)	(149,367)
		75,487			96,649	191,893	256,114

Current		22		(20,913)	(38,981)	(39,985)	(80,430)
Deferred	22		19,853	12,840	16,372	5,266
Net income for the period					74,427		70,508		168,280		180,950

Other comprehensive income

Items that will be reclassified to income (loss) for the year in subsequent periods.

Items that will not be reclassified to the result of the financial year in subsequent periods

Total comprehensive income (loss) for the period

-	-	-	-
-	-	-	-
74,427		70,508		168,280		180,950

Earnings per share attributable to Company's shareholders
Basic earnings per share (weighted average)		33		0.18		0.22		0.40		0.57
Diluted earnings per share (weighted average)		33		0.18		0.22		0.40		0.57

See the accompanying notes to the financial statements.

3

Statements of income and comprehensive income Periods ended

In thousands of reais - R$, except income per share

Revenue from rendering of services

Cost of services rendered

Gross income

Operating (expenses) revenues

General and administrative

Commercial expenses

Other operating revenues (expenses), net

Equity in net income of subsidiaries

Operating income before financial income (loss)

Financial revenues

Financial expenses

Financial income (loss)

Income before income tax and social contribution

Income tax and social contribution

		Consolidated			Consolidated
		Three-month period			Six-month period
		June 30,				June 30
Note	2023			2022	2023	2022
27		1,659,541			1,111,746	2,896,364	2,201,659
28		(1,204,442)			(811,390)	(2,084,594)	(1,576,553)
		455,099			300,356	811,770	625,106
29		(216,836)			(111,902)	(348,178)	(210,998)
30		(37,868)			(11,791)	(47,522)	(21,617)
31		(2,893)			7,500	(4,050)	10,791
11		255			414	255	415
		197,757			184,577	412,275	403,697
32		58,879			21,477	103,886	41,672
32		(158,389)			(107,821)	(292,935)	(193,629)
		(99,510)			(86,344)	(189,049)	(151,957)
		98,247			98,233	223,226	251,740

Current

Deferred

Net income for the period

Attributable to the partners:

Controlling shareholders

Non-controlling shareholders

Other comprehensive income

Items that will be reclassified to income (loss) for the year in subsequent periods.

Items that will not be reclassified to the result of the financial year in subsequent periods

Total comprehensive income (loss) for the period

22		(47,734)	(42,947)	(77,940)	(90,071)
22		23,529	15,638	22,580	20,087
			74,042		70,924		167,866		181,756
		74,427	70,508	168,280	180,950
		(385)	416	(414)	806
			74,042		70,924		167,866		181,756
		-	-	-	-
		-	-	-	-
			74,042		70,924		167,866		181,756

See the accompanying notes to the financial statements.

4

Statement of changes in shareholders' equity Periods ended

In thousands of reais - R$

						Capital
						Expenses		Net
		Note	Capital		with issue
				capital
						of shares
Balances at December 31, 2021	1,460,037	(22,784)	1,437,253

Profit reserves

Capital

Investment

Legal

Retained

Equity

Income

Treasury

valuation

for the

reserve

reserve

reserve

earnings

shares

adjustments

period

37,474

10,174

133,221

251,997

-

-

(24,836)

Shareholders'		Non-		Total
equity of
	controlling		shareholders'
controlling
	interest		equity
shareholders
1,845,283	9,200	1,854,483

Stock option plan			-	-	-	289	-	-	-	-	-	4,865	5,154	-	5,154
Non-controlling interest			-	-	-	-	-	-	-	-	-	-	-	1,694	1,694
Investment retention		25.d	-	-	-	-	12,830	-	(12,830)	-	-	-	-	-	-
Additional dividend proposed			-	-	-	-	-	-	(214,329)	-	-	-	(214,329)	-	(214,329)
Net income for the period			-	-	-	-	-	-	-	-	180,950	-	180,950	806	181,756
Balances at June 30, 2022			1,460,037	(22,784)	1,437,253	37,763	23,004	133,221	24,838	-	180,950	(19,971)	1,817,058	11,700	1,828,758
Balances at December 31, 2022			1,743,823	(26,601)	1,717,222	603,212	45,166	148,616	187,291	-	-	(19,971)	2,681,536	19,549	2,701,085
Capital increase		25.a	170,064	-	170,064			(170,000)	-	-	-	-	-	64	-	64
Acquisition of Company's interest			849,016	-	849,016	1,312,087	-	-	-	73,884	-	-	2,234,987	-	2,234,987
Expenditure with issue			-	(320)	(320)	-	-	-	-	-	-	-	(320)	-	(320)
Stock option plan		26.b	-	-	-	75	-	-	-	-	-	10,758	10,833	-	10,833
Non-controlling interest			-	-	-	-	-	-	-	-	-	-	-	(5,931)	(5,931)
Investment retention		25.d	-	-	-	-	162,453	-	(162,453)	-	-	-	-	-	-
Net income for the period			-	-	-	-	-	-	-	-	168,280	-	168,280	(414)	167,866
Balances at June 30, 2023			2,762,903	(26,921)	2,735,982	1,915,374	37,619	148,616	24,838	73,884	168,280	(9,213)	5,095,380	13,204	5,108,584

See the accompanying notes to the financial statements.

5