Padtec S A : 1Q23 Quarterly Results (V2)

Padtec Holding S.A.

Interim financial statements for the quarter ended March 31, 2023, accompanied by the Review Report on the Quarterly Information

Report on the Review of Quarterly Information

To the Shareholders and the Management of

Padtec Holding S.A.

Campinas - SP

Introduction

We have reviewed the individual and consolidated interim financial information of Padtec Holding S.A. ("Company"), contained in the Quarterly Information Form (ITR) for the quarter ended March 31, 2023, which comprises the Balance Sheet as of March 31, 2023 and the respective statements of profit of loss, comprehensive income, changes in equity and cash flows for the three-month period then ended, including the accompanying notes.

The Company's Management is responsible for preparing the individual and consolidated interim financial statements in compliance with Technical Pronouncement CPC 21(R1) and international standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board ("IASB"), as well as for its presentation in a manner consistent with the rules issued by the Brazilian Securities and Exchange Commission ("CVM"), applicable to the preparation of the Quarterly Information (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of the review

We conducted our review in compliance with Brazilian and international standards for the review of interim financial information (NBC TR 2410 - Interim Financial Information Review Performed by the Entity's Auditor and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists of making inquiries, mainly to persons responsible for financial and accounting matters, and applying analytical procedures and other review procedures. The scope of a review is significantly lower than an audit conducted in compliance with audit standards and, accordingly, has not allowed us to obtain assurance that we are aware of all significant matters that could be identified through an audit procedure. Therefore, we do not express an audit opinion.

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Conclusion on the individual and consolidated interim information

Based on our review, we are not aware of any facts that would lead us to believe that the individual and consolidated interim financial information included in the aforementioned quarterly information was not prepared, in all material respects, in compliance with Technical Pronouncement CPC 21(R1) and International Standard IAS 34, applicable the preparation of Quarterly Information - ITR and presented in a manner consistent with the rules issued by the Brazilian Securities and Exchange Commission (CVM).

Other matters

Statement of value added

The aforementioned quarterly information includes the individual and consolidated statements of value added (SVA) for the quarter ended March 31, 2023, prepared under the responsibility of the Company's management and presented as supplementary information for the purposes of IAS 34. Such statements were submitted to review procedures carried out together with the review of the quarterly information, in order to determine whether they are reconciled with the interim financial information and accounting records, as applicable, and whether their form and content comply with the criteria defined in Technical Pronouncement CPC 09 - Statement of Value Added. Based on our review, we are not aware of any facts that would lead us to believe that these statements of value added were not prepared, in all material respects, in compliance with the criteria defined in this Standard and in a consistent manner in relation to the individual and consolidated interim financial information taken together.

São Paulo, May 11, 2023.

Fernando Radaich de Medeiros

Accountant CRC 1SP 217.532/O-6

RSM Brasil Auditores Independentes - Sociedade Simples

CRC 2SP-030.002/O-7

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PADTEC HOLDING S.A.

BALANCE SHEETS

AS OF MARCH 31, 2023 AND DECEMBER 31, 2022

(Amounts In thousands of Brazilian reais - R$, unless otherwise indicated)

		Parent Company		Consolidated
	NOTE	03/31/23	12/31/22	03/31/23	12/31/22
ASSETS
CURRENT
Cash and cash equivalents	4	1	60	44,287	49,620
Tradable securities	5	-	-	2,848	3,703
Trade accounts receivable	6	-	-	109,175	134,999
Inventories	7	-	-	108,545	93,435
Taxes recoverable	8	1,765	1,788	26,738	34,330
Financial transactions	17	-	-	42,534	41,125
Other credits	9	134		197		4,256		5,494
TOTAL CURRENT ASSETS		1,900	2,045	338,383	362,706
NON-CURRENT
Trade accounts receivable	6	-	-	14,198	13,267
Restricted financial investments		-	-	244	212
Financial transactions	17	-	-	37,998	36,112
Judicial deposit	22.2	549	567	1,160	1,167
Other credits	9	-		-		212		409
		549		567		53,812		51,167
Investments	11.1	159,241	156,847	-	-
Net PPE	12	-	-	37,665	37,571
Net intangible assets	13	24		24		45,244		45,175
		159,265		156,871		82,909		82,746
TOTAL CURRENT ASSETS		159,814		157,438		136,721		133,913
TOTAL ASSETS		161,714	159,483	475,104	496,619

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

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PADTEC HOLDING S.A.

BALANCE SHEETS

AS OF MARCH 31, 2023 AND DECEMBER 31, 2022

(Amounts In thousands of Brazilian reais - R$, unless otherwise indicated)

		Parent Company		Consolidated
	NOTE	03/31/23	12/31/22	03/31/23	12/31/22
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT
Loans and financing	14	-	-	8,850	23,595
Debentures	15	-	-	10,517	10,517
Lease transactions	16	-	-	6,183	6,044
Suppliers	19	64	80	68,801	68,223
Related parties	10	-	-	369	344
Taxes and contributions payable	20	47	60	4,219	14,541
Taxes and contributions payable - installment	21	105	119	1,617	1,931
payment
Labor charges	23	312	285	25,477	22,774
Miscellaneous provisions	22.1	687	713	2,504	2,689
Financial transactions	17	-	-	42,534	41,125
Advances from customers		-	-	2,821	1,458
Other accounts payable		-		-		685		355
TOTAL CURRENT LIABILITIES		1,215	1,257	174,577	193,596
NON-CURRENT
Provision for labor, tax and civil risks	22.2	9,828	9,662	18,630	19,308
Loans and financing	14	-	-	68,306	68,769
Debentures	15	-	-	7,835	10,440
Suppliers	19	-	-	508	522
Lease transactions	16	-	-	17,362	18,909
Taxes and contributions payable - installment	21	-	8	1,783	2,016
payment
Related parties	10	14,084	12,877	-	-
Financial transactions	17	-	-	37,998	36,112
Transactions with senior FIDC quotas	18	-	-	10,643	10,393
Other accounts payable		-		-		875		875
TOTAL NON-CURRENT LIABILITIES		23,912		22,547		163,940		167,344
TOTAL LIABILITIES		25,127	23,804	338,517	360,940
SHAREHOLDERS' EQUITY
Share Capital	25.1	199,211	199,211	199,211	199,211
Accumulated losses		(60,103)	(60,780)	(60,103)	(60,780)
Goodwill on capital transaction		599	599	599	599
Other comprehensive income	25.2	(3,120)		(3,351)		(3,120)		(3,351)
TOTAL EQUITY ASSIGNED		136,587		135,679		136,587		135,679
TOTAL LIABILITIES AND EQUITY		161,714	159,483	475,104	496,619

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

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