Positivo Tecnologia S A : Dados Econômico-Financeiros

Positivo Tecnologia S.A.

Parent company and consolidated financial statements for the year ended December 31, 2021

KPMG Auditores Independentes Ltda. The Five East Batel

Rua Nunes Machado, nº 68 - Batel

Caixa Postal 13533 - CEP: 80250-000 - Curitiba/PR - Brasil Telefone [phone] kpmg.com.br

Independent auditors' report on the Parent company and consolidated financial statements

To the shareholders of Positivo Tecnologia S.A.

Curitiba ‐ PR

Opinion

We have audited the Parent company and consolidated financial statements of Positivo Tecnologia S.A. ("Company"), which comprise the Parent company and consolidated statement of financial position as of December 31, 2021, and the related statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising significant accounting policies and other explanatory information.

Opinion on the Parent company financial statements

In our opinion, the accompanying Parent company financial statements present fairly, in all material respects, the financial position of the Positivo Tecnologia S.A, as of December 31, 2021, and of its performance and its cash flows for the year then ended, in accordance with the accounting practices adopted in Brazil.

Opinion on the consolidated financial statements

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of Positivo Tecnologia S.A. as of December 31, 2021, and of its consolidated financial performance and its consolidated cash flows for the year then ended, in accordance with the accounting practices adopted in Brazil and International Financial Reporting Standards ‐ IFRS issued by the International Accounting Standards Board (IASB).

Basis for opinion

We conducted our audit in accordance with Brazilian and International Auditing Standards. Our responsibilities, under those standards are further described in the "Auditor's responsibilities for the audit of Parent Company and consolidated financial statements" section of our report. We are independent in relation to the Company, in accordance with the ethical requirements that are relevant to our audit of the financial statements provided for the Accountant's Code of Professional Ethics and professional standards issued by the Federal Accounting Council, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Parent company and consolidated financial statements of the current year. These matters were addressed in the context of our audit of the Parent company and consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Revenue recognition from sales of products
See the explanatory notes 2.21.(a) and 25 to the Parent company and consolidated financial statements
Key audit matters	How our audit addressed this matter
The Company's main sources of revenue are sales of products to customers. The Company recognizes revenue when it transfers control over the product to customers, in accordance with CPC 47 / IFRS 15 - Revenue from contract with customer. The transfer of control of the products occurs when they are delivered and accepted by the customers. Consequently, at the end of each year, the Company measures the amount of invoiced sales that have not yet been delivered and accepted by customers. The measurement of the amount of products in transit is calculated based on the respective delivery dates at the facilities where the customers are located. Due to the relevance of the amounts involved, the nature and extent of the audit procedures necessary to address the matter, we consider this matter to be significant for our audit.	Our audit procedures included, but were not limited to: ‐ evaluation of the design and implementation of the main internal controls related to the revenue recognition process; ‐ evaluation, based on a sample, of proof of delivery and acceptance of products by customers; ‐ evaluation, based on a sample, of products in transit, through proof of delivery subsequent to December 31, 2021 and the respective sales orders; ‐ evaluation of the relevant disclosures related to the recognition of revenue from sales of products in the financial statements. Based on the procedures summarized above and the results obtained, we consider that the amounts recognized as revenue from sales of products are acceptable, including the measurement prepared by management of the amount of goods in transit at the end of the year, as well as the related disclosures, in the context of the Parent company and consolidated financial statements taken as a whole.
Other matters ‐ Statements of added value

Parent company and consolidated statements of added value for the year ended December 31, 2021, prepared under responsibility of Company's management, and presented as supplementary information for IFRS purposes, were submitted to audit procedures carried out together with the audit of Company's financial statements. In order to form our opinion, we evaluated whether this statement is reconciled with the financial statements and book records, as applicable, and whether their form and content are in accordance with the criteria defined in Technical Pronouncement CPC 09 ‐ Statement of Added Value. In our opinion, these statements of added value were prepared, in all material respects, in accordance with the criteria defined in this Technical Pronouncement and are consistent in relation to the Parent Company and consolidated financial statements taken as a whole.

Other information accompanying Parent company and consolidated financial statements and the auditors' report

The Company's management is responsible for such other information that comprises the Management Report.

Our opinion on the Parent company and consolidated financial statements does not include the Management Report and we do not express any form of audit conclusion on such report.

Regarding the audit of Parent company and consolidated financial statements, our responsibility is to read the Management Report and, in doing so, consider whether this report is, in a material way, inconsistent with the financial statements or with our knowledge gained in the audit or otherwise appears to be materially misstated. If, based on the works performed, we conclude that there is a material misstatement in the Management Report, we are required to disclose this fact. We do not have anything to report on this respect.

Responsibility of management and those charged with governance for the Parent company and consolidated financial statements

Management is responsible for the preparation and fair presentation of the Parent company financial statements in accordance with Accounting Practices Adopted in Brazil and the consolidated financial statements in accordance with Accounting Practices Adopted in Brazil and with International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB) and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In the preparation of Parent company and consolidated financial statements, management is responsible for assessing the ability of the Company to continue as a going concern, disclosing, where applicable, the matters relating to its going concern and the use of this basis of accounting in preparing the financial statements, unless management intends to wind‐up the Company or cease its operations, or has no realistic alternative to avoid the closure of operations.

Those charged with governance of the Company and its subsidiaries are those responsible for supervising the process of preparing the financial statements.

Auditor's responsibilities for the audit of Parent company and consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the Parent company and consolidated financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Brazilian and International Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of the audit conducted in accordance with Brazilian and international auditing standards, we exercise professional judgment and maintain our professional skepticism throughout the audit. We also: - Identify and assess the risks of material misstatement in the Parent company and consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting material misstatement resulting from fraud is higher than that arising from error, as fraud may involve collusion forgery, intentional omissions, misrepresentations, or the override of internal control.

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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control its subsidiaries.

• - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• - Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the Parent company and consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• - Evaluate overall presentation, structure and content of financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner consistent with the objective of fair presentation.

• - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the Parent Company and consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other things, the planned scope and timing of the audit, as well as significant audit findings, including any significant deficiencies in internal controls that we identify during our work.

We also provide management with a statement that we have complied with relevant ethical requirements regarding independence and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Parent Company and consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Curitiba, March 22, 2022.

KPMG Auditores Independentes Ltda. CRC SP‐014428/O‐6 F‐PR

Original report in Portuguese signed by Edson Rodrigues da Costa

Accountant CRC PR‐054199/O‐0