Earnings Release - 3Q21

Release - 3Q21

3Q21 Results

Main Highlights

Rio de Janeiro, November 10, 2021 - MRS Logística S.A. announces its results for the third quarter of 2021. The Company's Financial Statements, duly reviewed by the independent auditors, are presented in reais (R$), in accordance with the international accounting standard - IFRS (International Financial Reporting Standards) - and according to the accounting practices adopted in Brazil.

Volume Transported

Mining

30.8

1. of Tons +10.5%*

Leverage Ratio

0.72x

-0.29x*

Volume Transported

In millions of TU

45.2 46.0 47.2

Operating Net Revenue

R$ 1,227.4MM

+21.4%*

EBITDA

R$ 637.9MM

+15.4%*

EBITDA1

In millions of reals

2,559.8 2,645.0

1,742.1

3Q20	2Q21	3Q21	3Q20	2Q21	3Q21
			¹ accumulated 12 months

*Comparisons refer to 3Q20 results

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3Q21 Results

Summary
HIGHLIGHTS .....................................................................................................................................................................................	4
OPERATING PERFORMANCE ..........................................................................................................................................................	5
Mining .....................................................................................................................................................................................	6
General Cargo ........................................................................................................................................................................	7
ECONOMIC-FINANCIAL PERFORMANCE .......................................................................................................................................	11
EBITDA....................................................................................................................................................................................	12
Net Profit...............................................................................................................................................................................	12
Indebtedness .......................................................................................................................................................................	13
Covenants.............................................................................................................................................................................	13
CASH FLOW STATEMENT...............................................................................................................................................................	14
ESG AGENDA...................................................................................................................................................................................	15
INVESTOR RELATIONS ...................................................................................................................................................................	18
CONSOLIDATED TABLES ................................................................................................................................................................	19

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3Q21 Results

HIGHLIGHTS

Financial and Operational Results	3Q21	3Q20	3Q21 x	2Q21	3Q21 x 2Q21	9M21	9M20	9M21 x 9M20
3Q20
Transported Volume (thousands tons)	47,234	45,165	4.6%	46,020.2	2.6%	131,778	115,424	14.2%
Gross Revenues (R$ million)	1,321.1	1,081.8	22.1%	1,254.7	5.3%	3,625.3	2,826.1	28.3%
Net Revenues (R$ million)	1,227.4	1,011.4	21.4%	1,163.3	5.5%	3,355.8	2,614.6	28.3%
EBITDA (R$ million)	637.9	552.7	15.4%	838.6	-23.9%	1,965.0	1,333	47.4%
EBITDA Margin ¹ (%)	52.0%	54.6%	-2.6pp	72.1%	-20.1pp	58.6%	51.0%	7.6pp
Net Income ¹ (R$ million)	137.4	148.6	-7.5%	420.4	-67.3%	633.4	203	211.3%
Gross Debt (R$ million)	3,964.9	3,038.8	30.5%	2,449.2	61.9%	3,964.9	3,038.8	30.5%
Net Debt (R$ million)	1,903.3	1,758.3	8.2%	1,497.4	27.1%	1,903.3	1,758	8.2%
Net Debt/EBITDA ¹ (x)	0.72x	1.01x	-0.29x	0.58x	0.14x	0.72x	1.01x	-0.29x
¹ Last 12 months (unadjusted result, that is, considering the non-recurring events).

The year 2021 has proved to be a scenario of economic recovery, with the advance of vaccination against Covid-19. The international market remains favorable to the mining and steel industry, which although the price of iron ore has declined at the end of this last quarter, it remains at a high level when compared to recent years.

MRS ended the third quarter of 2021 with Net Revenue of R$ 1,227.4 million, an increase of R$ 216.1 million compared to 3Q20. The transport segment that contributed the most to the increase in revenue was Iron Ore, reaching the mark of 30.8 Mt, an increase of 10.5% when compared to 3Q20 and 8.1% compared to 2Q21. The General Cargo segment deserves to be highlighted in 2021, with a record in the nine-month period, reaching the mark of 47.4 Mt.

The Company's EBITDA presented a result of R$ 637.9 million, a 15.4% increase compared to the third quarter of 2020.

Reiterating discipline in cash management and increased EBITDA generation, the Net Debt/EBITDA indicator, presented by MRS, reached 0.72x in 3Q21, highlighting the raising of funds in the amount of R$ 1.5 billion, through the 10th issue of debentures.

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3Q21 Results

OPERATING PERFORMANCE

MRS Logística operates mainly in the transport of inputs and products related to the steel industry, such as iron ore, coal and coke, to serve the domestic and export markets, and in the transport of General Cargo, which includes agricultural commodities, steel products, containers, among others, in a railway network with more than 1,600 km, in the states of Minas Gerais, Rio de Janeiro and São Paulo.

In 3Q21, total cargo transportation reached 47.2 Mt, an increase of 4.6% compared to 3Q20, the best result since 3Q18. Highlighting the segments of mining and steel products, which grew by 10.5% and 36.4%, respectively.

In the comparison of 9M21 with the same period in 2020, MRS presented a 14.2% growth in the total volume transported, which represents 16.4 million tons (Mt).

Transported Volume	3Q21	3Q20	3Q21 x	2Q21	3Q21 x 2Q21 9M21	9M20	9M21 x 9M20
Thousand tons	3Q20

Mining	30,846	27,908	10.5%	28,546	8.1%	84,332	69,536	21.3%
Iron One	30,158	27,354	10.3%	27,915	8.0%	82,310	67,571	21.8%
Export	26,348	24,683	6.7%	24,086	9.4%	71,032	58,863	20.7%
Domestic Market	3,811	2,671	42.7%	3,829	-0.5%	11,278	8,708	29.5%
Coal and Coke	688	554	24.2%	630	9.1%	2,022	1,965	2.9%

General Cargo	16,387	17,257	-5.0%	17,475	-6.2%	47,446	45,887	3.4%
Agricultural Products	10,077	11,915	-15.4%	12,026	-16.2%	30,470	30,774	-1.0%
Steel Products	2,026	1,486	36.4%	1,816	11.6%	5,648	4,418	27.9%
Container	583	528	10.3%	609	-4.4%	1,732	1,606	7.8%
Construction	502	566	-11.4%	473	6.1%	1,477	1,537	-3.9%
Others	3,200	2,761	15.9%	2,550	25.5%	8,118	7,552	7.5%
Total	47,234	45,165	4.6%	46,020	2.6%	131,778	115,425	14.2%

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