Log In Logística Intermodal S A : Financial Statements** 4Q23

Log-In Logística Intermodal S.A.

Individual and Consolidated

FINANCIAL STATEMENTS

December 31, 2023

STATEMENT OF FINANCIAL POSITION

In thousands of reais - R$

		Consolidated	Parent Company
	Note	12.31.2023	12.31.2022	12.31.2023	12.31.2022
ASSETS
CURRENT
Cash and cash equivalents	5	436,406	337,268	218,025	167,486
Investments	5	126,177	245,312	123,744	227,013
Trade accounts receivable	6	346,045	275,171	183,360	159,215
Inventories		61,968	53,768	49,645	42,265
Related party receivables	7	15,434	7,781	206,185	91,649
Recoverable taxes	8	51,887	57,958	13,699	26,439
Merchant Marine Fund - AFRMM	9	19,587	22,154	19,587	22,154
Recoverable claims		8,507	15,536	51	6
Financial Instruments	25	-	791	-	-
Other current assets		43,071	51,309	16,653	12,805
Total current assets		1,109,082	1,067,048	830,949	749,032
NON-CURRENT
Merchant Marine Fund - AFRMM	9	93,641	37,162	93,641	37,162
Deferred income tax and social contributions	10	451,250	472,452	427,087	438,321
Escrow deposits		25,041	22,728	14,251	12,017
Related party receivables	7	-	-	347,788	74,667
Indemnifiable Asset	17	226,115	232,674	-	-
Other non-current assets		356	1,421	356	1,306
Investments in subsidiaries	11	-	-	691,100	722,465
Right of Use Assets - Leasing	14	252,556	235,707	104,787	99,082
Property, plant and equipment	12	1,344,057	1,280,652	251,094	309,640
Intangible assets	13	117,190	99,219	25,999	25,978
Total non-current assets		2,510,206	2,382,015	1,956,103	1,720,638
TOTAL ASSETS		3,619,288	3,449,063	2,787,052	2,469,670
LIABILITIES
CURRENT
Payroll and social charges		70,297	51,139	33,324	23,626
Taxes and contributions payable		45,496	56,910	11,577	16,483
Trade Accounts Payable and operating provisions	15	204,545	184,747	144,027	98,852
Borrowings, financing and debentures	16	259,725	256,359	193,964	200,394
Liabilities with Leasing	14	57,348	52,427	40,796	34,254
Related party payables	7	12,520	7,454	187,971	123,132
Proposed dividends		37	14	-	-
Acquisition of shareholding		57,981	62,665	10,505	5,920
Other current liabilities		7,216	8,415	1,481	2,812
Total current liabilities		715,165	680,130	623,645	505,473
NON-CURRENT
Acquisition of shareholding		90,279	113,961	73,287	78,509
Borrowings, financing and debentures	16	1,366,765	1,265,002	1,077,755	930,189
Liabilities with Leasing	14	188,255	186,136	63,848	79,479
Contingencies	17	279,231	283,181	1,721	506
Deferred income tax and social contributions	10	34,924	44,437		-
Loss on investment in subsidiary		-	-	6,556	-
Other non-current liabilities		5,522	602	1,225	-
Total non-current liabilities		1,964,976	1,893,319	1,224,392	1,088,683
TOTAL LIABILITIES		2,680,141	2,573,449	1,848,037	1,594,156
EQUITY	18
Share capital		1,322,695	1,318,940	1,322,695	1,318,940
Capital reserves		37,737	30,885	37,737	30,885
Treasury shares		(50,922)	(50,922)	(50,922)	(50,922)
Accumulated losses		(370,667)	(430,770)	(370,667)	(430,770)
Cash flow hedge reserve		10,311	7,310	10,311	7,310
Cumulative translation adjustments		(10,139)	71	(10,139)	71
Equity attributable to controlling shareholders		939,015	875,514	939,015	875,514
Non-controlling shareholder interest		132	100	-	-
TOTAL EQUITY		939,147	875,614	939,015	875,514
TOTAL LIABILITIES AND EQUITY		3,619,288	3,449,063	2,787,052	2,469,670

The accompanying notes are an integral part of these financial statements.

3

INCOME STATEMENT

In thousands of reais - R$

		Consolidated	Parent Company
		For the years ended December 31
	Note	2023	2022	2023	2022
Ongoing operations
Net Revenue	22	2,338,625	2,067,050	1,284,354	1,020,748
Cost of services provided	23	(1,871,490)	(1,579,411)	(1,121,562)	(874,636)
GROSS PROFIT		467,135	487,639	162,792	146,112
Funds from subsidy - AFRMM invested	9	84,012	58,978	84,012	58,978
Administrative and selling expenses	23	(201,552)	(156,769)	(84,775)	(72,054)
Other income (expenses), net		(8,618)	10,192	(13,500)	(1,916)
Income from equity method		-	-	34,761	192,898
PROFIT BEFORE NET FINANCE COSTS		340,977	400,040	183,290	324,018
FINANCIAL RESULT	24
Finance Income		70,582	69,388	68,381	46,596
Finance expenses		(249,618)	(236,450)	(162,707)	(178,720)
Monetary and exchange rate variances, net		(17,237)	15,572	2,086	3,102
		(196,273)	(151,490)	(92,240)	(129,022)
		144,704	248,550	91,050	194,996
INCOME TAX AND SOCIAL CONTRIBUTIONS	10
Current		(74,390)	(55,425)	(30,881)	(6,320)
Deferred		(10,142)	213,635	(66)	218,026
		(84,532)	158,210	(30,947)	211,706
PROFIT FOR THE YEAR		60,172	406,760	60,103	406,702
PROFIT ATTRIBUTABLE TO
Controlling shareholders		60,103	406,702	-	-
Non-controlling shareholders		69	58	-	-
EARNINGS PER SHARE - IN REAIS
Basic (centavos per share)	19	0.57	3,87	0.57	3,87
Diluted (centavos per share)	19	0.57	3,86	0.57	3,86

The accompanying notes are an integral part of these financial statements.

4

STATEMENT OF COMPREHENSIVE INCOME

In thousands of reais - R$, except for earnings per share

Profit for the year

Other comprehensive income:

Items that may subsequently be reclassified to the profit or loss

Exchange gain (loss) on hedge instruments during the year, net of taxes

Recycling

Translation adjustments of foreign operations

TOTAL COMPREHENSIVE INCOME FOR THE YEAR TOTAL COMPREHENSIVE INCOME ATTRIBUTED TO

	Consolidated		Parent Company
		For the years ended December 31
Note	2023	2022	2023	2022
	60,172	406,760	60,103	406,702
18	828	(5,442)	(1,107)	(5,810)
18	(3,829)	(3,234)	(3,318)	(2,866)
11	10,210	1,059	10,210	1,059
	67,381	399,143	65,888	399,085

Controlling shareholders	65,888	399,085	-	-
Non-controlling shareholders	1,493	58	-	-

The accompanying notes are an integral part of these financial statements.

5

STATEMENT OF CHANGES IN EQUITY

In thousands of reais - R$

								Equity
					Accumulated		Accumulated	attributable to	Non-controlling
		Share	Capital	Treasury	(Profit)	Cash flow	translation	controlling	shareholder	Total
	Note	capital	Reserve	Shares	Losses	hedge reserve	adjustments	shareholders	Interest	Equity
BALANCES AS AT JANUARY 1, 2022		1,314,852	28,959	(50,922)	(837,472)	(1,366)	1,130	455,181	116	455,297
Capital increase by share subscription	18	4,088	-	-	-	-	-	4,088	-	4,088
Options granted (Stock option plan)	20	-	1,926	-	-	-	-	1,926	-	1,926
Proposed dividends		-	-	-	-	-	-	-	(74)	(74)
Profit for the year		-	-	-	406,702	-	-	406,702	58	406,760
Recognition of the hedge reserve	18	-	-	-	-	8,676	-	8,676	-	8,676
Other comprehensive income		-	-	-	-	-	(1,059)	(1,059)	-	(1,059)
BALANCES AS AT DECEMBER 31, 2022		1,318,940	30,885	(50,922)	(430,770)	7,310	71	875,514	100	875,614
BALANCES AS AT JANUARY 1, 2023		1,318,940	30,885	(50,922)	(430,770)	7,310	71	875,514	100	875,614
Capital increase by share subscription	18	3,755	-	-	-	-	-	3,755	-	3,755
Options granted (Stock option plan)	20	-	6,852	-	-	-	-	6,852	-	6,852
Profit for the year		-	-	-	60,103	-	-	60,103	32	60,135
Recognition of the hedge reserve	18	-	-	-	-	3,001	-	3,001	-	3,001
Other comprehensive income		-	-	-	-	-	(10,210)	(10,210)	-	(10,210)
BALANCES AS AT DECEMBER 31, 2023		1,322,695	37,737	(50,922)	(370,667)	10,311	(10,139)	939,015	132	939,147

6

CASH FLOW STATEMENT

In thousands of reais - R$

		Consolidated	Parent Company
	Note	12.31.2023	12.31.2022	12.31.2023	12.31.2022
Cash flow from operating activities
Profit for the year		60,172	406,760	60,103	406,702
Adjustments by:
Income from equity method	11	-	-	(34,761)	(192,898)
Depreciation and amortization	23	227,654	176,021	89,898	71,246
Current and deferred income tax and social contributions	10	84,532	(158,210)	30,947	(211,706)
Provision (reversal) for risks and monetary restatement	17	(196)	(39,706)	3,351	937
Constitution (reversal) for expected credit loss - ECL		(445)	1,638	(464)	737
Operating provisions	15	44,340	73,711	63,097	39,445
Expense with stock option plan	20	6,852	1,926	6,852	1,926
Interest, charges and exchange variance, net	24	198,318	166,173	110,172	125,361
Funds from subsidy - AFRMM invested	9	(84,012)	(58,978)	(84,012)	(58,978)
Income from investments		(64,985)	(63,876)	(38,487)	(42,211)
Provision for profit sharing		46,212	22,282	30,563	15,183
Recoverable claim		7,029	(13,802)	(45)	879
Realization of gains and losses to acquire new businesses	11	6,559	(9,218)	29,176	5,643
Other		10,084	4,308	(2,587)	9,880
Changes in assets and liabilities:
Trade and related-party accounts receivable		(57,129)	135,373	(33,510)	23,140
Inventories		(8,200)	(13,137)	(7,390)	(10,747)
Recoverable taxes		6,071	35,940	12,740	31,021
Merchant Marine Fund - AFRMM		30,037	33,197	30,037	33,197
Other assets		11,710	3,894	(1,284)	1,027
Escrow deposits		(2,313)	(3,810)	(2,234)	(551)
Payroll and social charges		19,158	2,252	9,698	1,853
Taxes and contributions payable		53,475	(5,173)	(4,906)	(854)
Trade Accounts Payable and amounts payable to related parties		(19,476)	(69,780)	46,911	148,177
Risk provision payments	17	(3,752)	(5,885)	(2,136)	(3,785)
Other liabilities		(1,176)	(12,518)	(1,331)	(809)
Cash Flow from operations		570,519	609,382	310,398	393,815
Income tax and social contributions paid		(64,889)	(41,394)	(26,467)	-
Net cash provided by operating activities		505,629	567,988	283,931	393,815
Cash flows from investing activities
Payment of capital and Advance for Future Capital (AFAC) in		-	-	(41,571)	-
subsidiaries
Acquisition of shareholding		(40,679)	(52,075)	(4,931)	(27,075)
Cash from business combinations		-	4,073	-	-
Additions to property, plant and equipment and intangible assets	12/13	(286,500)	(190,760)	(182,698)	(81,207)
Financial investments and redemptions, net		184,120	145,704	141,756	143,917
Net cash provided by (invested in) investment activities		(143,059)	(93,058)	(87,444)	35,635
Cash flows from financing activities	26
Capital increase by share subscription		3,755	4,088	3,755	4,088
Amortization of reverse factoring transaction		(33,083)	(100,306)	(29,906)	(100,306)
Costs of issuing debentures for funding		-	(301)	-	-
Payment of loans with subsidiaries		-	-	-	(3,916)
Loans granted		-	-	(3,860)	(29,907)
Receipt of loans granted		866	168	866	168
Borrowing and financing		275,000	130,000	275,000	130,000
Cost of borrowing and financing		(3,070)	(1,240)	(3,070)	(1,240)
Repayment of loans and financing		(267,198)	(173,537)	(208,437)	(128,869)
Interest paid on loans, financing and debentures		(144,140)	(131,017)	(119,003)	(105,720)
Amortization of principal and interest on leasing liabilities		(95,562)	(81,815)	(61,293)	(53,884)
Net cash used in financing activities		(263,432)	(353,960)	(145,948)	(289,586)
Net increase (decrease) in cash and cash equivalents		99,138	120,970	50,539	139,864
Cash and cash equivalents at the beginning of the year		337,268	216,298	167,486	27,622
Cash and cash equivalents at the end of the year		436,406	337,268	218,025	167,486

The accompanying notes are an integral part of these financial statements.

7

STATEMENT OF VALUE ADDED

In thousands of reais - R$

	Consolidated	Parent Company
	For the years ended December 31
	2023	2022	2023	2022
Generation of value added
Revenue generated:	2,984,231	2,461,102	1,724,954	1,279,917
Gross Revenue	2,699,552	2,352,520	1,480,835	1,172,236
Other revenue	84,012	58,978	84,012	58,978
Revenue from the construction of own assets	200,222	47,966	159,643	47,966
Constitution for expected credit loss - ECL	445	1,638	464	737
Raw materials used to generate revenues from services:	(1,690,465)	(1,166,080)	(1,071,448)	(699,798)
Contracted services	(1,369,925)	(911,591)	(865,069)	(533,354)
Materials	(72,917)	(30,080)	(20,813)	(7,974)
Fuel oil and gases	(230,480)	(217,371)	(158,261)	(142,070)
Reversal (contribution) of contingencies	198	39,706	(3,351)	(937)
Other	(17,341)	(46,744)	(23,954)	(15,463)
Gross value added	1,293,766	1,295,022	653,506	580,119
Depreciation and amortization	(227,654)	(176,021)	(89,898)	(71,246)
Net added value	1,066,112	1,119,001	563,608	508,873
Value added received for transfer:	185,232	193,704	204,903	328,677
Income from equity method	-	-	34,761	192,898
Finance income and monetary variances and asset exchange	185,232	193,704	170,142	135,779
rates
Total value added for distribution	1,251,344	1,312,705	768,511	837,550
Distribution of value added
Personnel:	377,667	308,639	160,542	112,710
Remuneration	290,914	218,541	123,288	87,802
Benefits	68,735	74,940	30,916	19,553
FGTS	18,018	15,158	6,338	5,355
Taxes, charges and contributions:	358,881	146,432	168,834	(46,573)
Federal	191,150	18,176	75,300	(113,989)
State	141,642	106,901	92,038	65,952
Municipal	26,089	21,355	1,496	1,464
Remuneration of third-party capital:	454,624	450,874	379,032	364,711
Finance expense and monetary and exchange liabilities	381,505	345,194	262,382	264,801
Freight, rental and leasing	73,119	105,680	116,650	99,910
Remuneration of own capital:	60,172	406,760	60,103	406,702
Retained earnings	60,103	406,702	60,103	406,702
Non-controlling shareholder interest	69	58	-	-
Total added value distributed	1,251,344	1,312,705	768,511	837,550

The accompanying notes are an integral part of these financial statements.

8

ACCOMPANYING NOTES

In thousands of Brazilian reais - R$, except when otherwise stated

1. OPERATIONS

Log-In Logística Intermodal S.A. and its subsidiaries ("Log-In" or "Company") provide coastal and long-haul shipping services (Mercosur), in addition to operating in road freight transport and in land and port terminals in Brazil.

The Company offers integrated logistics solutions for container handling for door-to-door and part-load transport, that is, by sea, supplemented by road haulage. As at December 31, 2023, the Company has 7 (seven) own ships in operation, 1,241 (one thousand, three hundred and seventy-two) vehicles in its own fleet, operates 1 (one) port terminal and 2 (two) intermodal terminals.

Log-In ("Parent Company") is a publicly-held corporation headquartered in the city of Rio de Janeiro and its securities are traded on B3 S.A. - Brasil, Bolsa, Balcão under the code LOGN3.

The Company is controlled by SAS Shipping Agencies Services Sàrl ("SAS"), a company in the MSC Group and majority holder of the ordinary shares issued by Log-In, excluding treasury shares, as per Note 18.

2. HIGHLIGHTS

The following are some key matters that occurred in the year ended December 31, 2023:

• 2nd (Second) Issue of Book-Entry Commercial Papers

On November 8, 2023, the Company's Board of Directors approved its 2nd issue of book-entry commercial notes, in a single series, with a unit value of R$1,000 (one million reais), totaling R$275,000 (two hundred and seventy-five million), with a maturity of 7 (seven) years from the date of issue of the commercial notes.

The net funds raised through the issue will be used for working capital and to develop the Company's general activities.

3. BASIS FOR THE PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS

3.1 STATEMENT OF COMPLIANCE

The individual and consolidated financial statements ("financial statements") were prepared in accordance with the International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and in accordance with accounting practices adopted in Brazil ("BR GAAP").

The Management hereby declares that all relevant information specific to the financial statements, and only this, is being proven and corresponds to that used by Management in its management.

3.2 BASIS OF PREPARATION

The financial statements were prepared based on historical cost, except for certain financial instruments measured at fair value at the end of each reporting period, as described in the accounting practices below. Historical cost is usually based on the fair value of the consideration paid in exchange for goods and services.

Management and directors have, on the date that the financial statements were approved, full expectation that the Group has adequate funds to continue operating in the near future. Therefore, they continue to adopt the going concern basis of accounting in preparing the individual and consolidated financial statements.

3.3 FUNCTIONAL AND REPORTING CURRENCY

These financial statements are reported in Reais (R$), the Company's functional currency, with rounding when applicable, except when otherwise stated.

For subsidiaries abroad that operate in a stable economic environment and have a functional currency different from that of the Parent Company, the income statements are converted into reais at the average monthly exchange rate, assets and liabilities at the final rate and equity items at the historic rate.

9

ACCOMPANYING NOTES

In thousands of Brazilian reais - R$, except when otherwise stated

For the subsidiary Log‐In Mercosur, which operates in a hyperinflationary economy (Argentina), the financial statements were prepared by the Management in the functional currency of that country and subsequently converted into the reporting currency of the parent company, based on the precepts provided for in CPC42 ‐ Financial Reporting in Hyperinflationary Economies (IAS 29).

Exchange variations on investments in subsidiaries, with a functional currency different from that of the Parent Company, are recorded in equity as a cumulative conversion adjustment that is transferred through the profit or loss when the investments are disposed of.

3.4 BASIS OF CONSOLIDATION

The consolidated financial statements include the financial statements of the Company and its subsidiaries up to December 31, 2023. Further information on the Company's subsidiaries is given in Note 11.

Control is obtained when the Company: (i) has power over the investee; (ii) is exposed, or has rights, to variable returns arising from its involvement with the investee; and (iii) has the ability to use that power to affect its returns.

The consolidation of a subsidiary begins when the Company obtains its control and ends when it loses it. Specifically, the income and expenses of a subsidiary acquired or disposed of during the period are included in the income statement from the date on which the Company obtains control until the date on which the Company ceases to control the subsidiary.

When necessary, the financial statements of the subsidiaries are adjusted to bring their accounting policies into line with the Company's accounting policies. All transactions, balances, income, unrealized income and expenses and cash flows between group companies are eliminated in the consolidated financial statements.

Non-controlling interests in subsidiaries are identified separately from the Company's interest in these subsidiaries. The book value of non-controlling interests corresponds to the value of these interests in the initial recognition plus the portion of subsequent changes in the equity of the subsidiaries.

10

ACCOMPANYING NOTES

In thousands of Brazilian reais - R$, except when otherwise stated

3.5 SEGMENT REPORTING

The Company's line of business consists of integrated logistics solutions ("one stop shop") for handling and transporting containers door-to-door. In order to provide intermodality to customers, the Company provides maritime transport, short- haul road services, land terminals, port terminals and warehousing. The Company's assets operate in an integrated manner, with interconnected and interdependent results.

The Port Terminal ("Terminal de Vila Velha - TVV"), in addition to being part of the Company's integrated logistics solutions, started to operate more general cargo, mainly related to new businesses, positioning itself increasingly as a multipurpose terminal. Tecmar and the Oliva Pinto Group were classified as the Company's road freight transport. With these events, the Company concluded that the statements prepared and reviewed by the Company's CEO (the main operational decision maker), to allocate funds and assess its performance for the year ended December 31, 2023, considers this intermodality of services provided as three operating segments, which are:

• Integrated Logistics Solutions;
• Port terminal; and
• Road Cargo Transport.

The Company's main decision maker does not analyze certain balance sheet accounts segregated by operating segment, with the exception of loans, financing and debentures. Therefore, this segmented reporting is not being presented.

11