Vulcabras S A : ITR 1Q23

Interim Financial Information

Vulcabras S.A.

March 31, 2023

with Independent auditors' report on interim financial information

Vulcabras S.A.

Interim financial information

March 31, 2023

Contents

Independent auditor's review report on quartely information	1
Reviewed individual and consolidated interim financial information
Statements of financial position	3
Statements of profit or loss	4
Statements of comprehensive income	5
Statements of changes in equity	6
Statements of cash flows	7
Statements of added value	8
Notes to individual and consolidated interim financial information	9

Centro Empresarial Queiroz Galvão - Torre Cícero Dias

Rua Padre Carapuceiro, 858

8º andar, Boa Viagem

51020-280 - Recife - PE - Brasil

Tel: [phone]

Fax: [phone] ey.com.br

A free translation from Portuguese into English of Independent Auditor's Review Report on interim financial information prepared in Brazilian currency in accordance with accounting practices adopted in Brazil and with IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB)

Independent auditor's review report on quarterly information

To the Administrators and Shareholders of

Vulcabras S.A.

Jundiaí - SP

Introduction

We have reviewed the accompanying individual and consolidated interim financial information, contained in the Quarterly Information Form (ITR) of Vulcabras S.A. ("Company"), for the quarter ended March 31, 2023, comprising the statement of financial position as of March 31, 2023 and the related statements of profit or loss, comprehensive income, changes in equity and cash flows for the quarter then ended, including explanatory notes.

Executive board is responsible for the preparation of the individual and consolidated interim financial information in accordance with NBC TG 21 - Interim Financial Reporting and IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as for the fair presentation of this information in conformity with specific rules issued by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of the Quarterly Information Form (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review

We conducted our review in accordance with Brazilian and international standards on review engagements (NBC TR 2410 and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the individual and consolidated interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual and consolidated interim financial information included in the quarterly information referred to above are not prepared, in all material respects, in accordance with NBC TG 21 and IAS 34, applicable to the preparation of Quarterly Financial Form (ITR), and presented consistently with the rules issued by the Brazilian Securities and Exchange Commission (CVM).

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Uma empresa-membro da Ernst & Young Global Limited

Other matters

Statements of value added

The aforementioned quarterly information include the individual and consolidated statements of value added (SVA) for the three-month period ended March 31, 2023, prepared under responsibility of Company's Executive Board responsibility and presented as supplementary information by IAS 34. These statements have been subject to review procedures performed together with the review of the quarterly information with the objective to conclude whether they are reconciled to the interim financial information and accounting records, as applicable, and if its format and content are in accordance with the criteria set forth by NBC TG 09 - Statement of Value Added. Based on our review, nothing has come to our attention that causes us to believe that they were not prepared, in all material respects, consistently with the overall individual and consolidated interim financial information.

Recife (PE), May 2, 2023.

ERNST & YOUNG

Auditores Independentes S.S. Ltda.

CRC-SP015199/O

Original report in Portuguese signed by

Francisco da Silva Pimentel

Accountant CRC-1SP171230/O-7-T-PE

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Vulcabras S.A.

(Publicly-held company)

Statements of financial position

As of March 31, 2023 and December 31, 2022

(In thousands of reais)

		Consolidated		Parent Company			Consolidated		Parent Company
Assets	Note	03/31/2023	12/31/2022	03/31/2023	12/31/2022	Liabilities	Note 03/31/2023	12/31/2022	03/31/2023	12/31/2022

Cash and cash equivalents	4	374,186	197,197	36,315	35,161	Suppliers
Interest earning bank deposits	5	4	4	4	4	Loans and financing
Trade accounts receivable	6	620,404	769,457	-	-	Lease liabilities
Inventories	7	715,002	567,831	-	-	Taxes payable
Recoverable taxes	8	14,656	18,685	620	582	Salaries and vacations payable
Income tax and social contribution	9a	16,303	13,859	1,624	1,331	Provisions
Other accounts receivable		20,465	26,074	50,993	6,141	Commissions payable
									Dividends and profits payable
Total current assets		1,761,020	1,593,107	89,556	43,219	Other accounts payable

Total current liabilities

16	173,443	104,925	376	368
17	269,341	283,638	-	-
18	9,470	8,509	-	-
	24,597	19,670	209	330
	53,415	56,139	14	13
19	4,046	3,102	387	397
	20,198	19,538	-	-
	20,734	20,734	20,734	20,734
	38,524		53,716		851		1,191
	613,768	569,971	22,571	23,033

Interest earning bank deposits	5		9,158	8,942	2	1
Trade accounts receivable	6		9,977	5,153	-	-	Loans and financing	17	204,553	133,410	-	-
Recoverable taxes	8		200,780	193,504	1,881	1,831	Borrowings with related parties	11	18,550	18,448	57,146	109,889
Deferred income tax and social contribution	9b	13,692	13,591	301	301	Lease liabilities	18	11,857	12,059	-	-
Judicial deposits	10		24,450	22,419	410	408	Provisions	19	52,474	54,274	409	591
Goods for sale			194	194	-	-	Deferred income tax and social contribution	9b	17,037	17,079	301	301
Other accounts receivable			1,845		1,934		872		973	Other accounts payable		3,470		3,681		-		-
Long-term assets			260,096	245,737	3,466	3,514	Total non-current liabilities		307,941	238,951	57,856	110,781
Investments	12		77,567	75,662	1,780,923	1,798,458	Shareholders' equity	20
Investment property			3	4	-	-	Capital		1,108,354	1,106,717	1,108,354	1,106,717
Right-of-use	18		18,323	18,119	-	-	Capital reserves		(3,413)	(1,472)	(3,413)	(1,472)
Property, plant and equipment	13		390,215	379,031	-	-	Revaluation reserve		4,136	4,175	4,136	4,175
Intangible assets	14		208,437	209,096	111	111	Equity valuation adjustments		24,779	25,974	24,779	25,974
										Profit reserves		576,094	576,094	576,094	576,094
			694,545	681,912	1,781,034	1,798,569	Retained earnings		83,679		-		83,679		-
										Shareholders' equity attributable to controlling shareholders	1,793,629		1,711,488		1,793,629		1,711,488
										Non-controlling interest		323		346		-		-
Total non-current assets			954,641		927,649		1,784,500		1,802,083	Total shareholders' equity		1,793,952		1,711,834		1,793,629		1,711,488
										Total liabilities		921,709		808,922		80,427		133,814
Total assets			2,715,661		2,520,756		1,874,056		1,845,302	Total liabilities and shareholders' equity		2,715,661		2,520,756		1,874,056		1,845,302
See the accompanying notes to the quarterly financial information.										-	-	-	-

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