#12021 ANNUAL REPORT VOTORANTIM#2Contents A Message from the Board of Directors A Message from the Executive Board 2021 Highlights Portfolio Overview The Investment Holding Company Strategy and Management People Governance, Compliance, and Risks Economic and Financial Performance Social Investment Center of Excellence (CoE) Reservas Votorantim Altre Portfolio Companies Votorantim Cimentos Banco BV CBA Votorantim Energia Nexa Citrosuco Acerbrag About this Report GRI Disclosures Consolidated Financial Statements Limited Assurance Statement Credits and Corporate Information#3A Message from the Board of Directors 102-10 | 102-14 Watch the video We started 2021 with hope that our activities would get back to normal and our mobility would be resumed, but as early as the first quarter, we realized that the health crisis would be longer and more complex than anticipated. The important progress in vaccinations brought us a sense of relief and we ended the year optimistic about the future management of the pandemic, while also recognizing the need to still follow protocols and gain knowledge about how to deal with the coronavirus. As restrictions began to be relaxed, the global economy showed signs of recovery. However, the increase in demand was not followed by an equal increase in supply. Global growth in 2021 was hampered by disruptions in supply chains, rising inflation in developed countries and some emerging markets, higher interest rates, and political uncertainty. In Brazil, the Central Bank reversed the downward trend in interest rates to contain the rise in inflation, which was a result of the exchange rate devaluation, an increase in commodity prices, and higher production costs. What followed was a decrease in consumption and investments, which had a negative impact on the projected gross domestic product (GDP) during the year. At Votorantim, in an environment filled with pandemic-induced uncertainties, we continued to pay attention to and care for our employees. We also focused on the financial health of our companies and our business continuity, and we continued to support society through various initiatives. During these last two years, as we have been facing an unprecedented health crisis, we have witnessed the importance of our adaptability, our structures' flexibility, and our organized and unbureaucratic decision-making processes. For us, the year was filled with good results, not only from an economic and financial standpoint, but also with regard to stronger collaboration in strategic discussions between Votorantim S.A. (the investment 2 =#4holding company) and its portfolio companies. All our companies had positive financial results, which contributed to significantly higher consolidated results than in recent years. At the end of 2021, our leverage, calculated by the net debt to adjusted EBITDA ratio, was the lowest in more than 10 years. From a strategic standpoint, there were important movements in the evolution of our portfolio, which also reinforced Votorantim's extremely positive qualities, including the company's ability to reinvent itself and create unique partnerships. CBA's initial public offering (IPO) in July, the combination of energy assets by Votorantim Energia and CPP Investments announced in October, and new investments made by Votorantim Cimentos in North America and Spain contributed to the diversification of our portfolio and the creation of value. Also in 2021, banco BV advanced its digitalization strategy and we created Altre, a real estate company that made important investments during the year. We consolidated our net financial resources management abroad and, at the end of the year, we invested in CCR, in the infrastructure industry, in line with our portfolio evolution strategy. In addition, we worked. to ensure that ESG (environmental, social, and governance) issues were discussed by the Boards of Directors of our portfolio companies with the necessary focus and depth and that these discussions would result in concrete action. We expect 2022 to be another challenging year due to uncertainties associated with new coronavirus variants, the turmoil resulting from an election year in Brazil, and the projections of modest economic growth in the country. Our trust in our long-term strategy and business experience in Brazil, aligned with the clear vision of our shareholders, has helped us establish decision-making processes that guarantee us confidence in challenging times. Votorantim, once again, is prepared to face periods of volatility and come out stronger. Eduardo Vassimon Chairman of the Board of Directors of Votorantim S.A. = 3 From left to right: Marcelo Medeiros, Luís Ermírio de Moraes, José Roberto Ermírio de Moraes, Eduardo Vassimon, Oscar Bernardes, Cláudio Ermírio de Moraes, and Marcos Lutz.#5Watch the video A Message from the Executive Board 2021 was an extraordinary year, and despite all its challenges, we stayed true to our strategy and continued to advance in our portfolio evolution. We ended the year with great pride in our achievements, from our historic financial results to the transformational initiatives in our portfolio, and with renewed confidence in our leadership's ability to adapt and thrive. Our portfolio companies were agile and demonstrated the ability to adapt quickly to new circumstances, from the complex operating conditions in the beginning of the pandemic to the strong resumption of economic activity throughout 2021. As a result, we achieved outstanding results across our portfolio and had a historical year from a consolidated perspective. Consolidated net revenues in 2021 were R$ 49 billion, adjusted EBITDA reached R$ 11,5 billion and 102-10 | 102-14 net income was R$ 7,1 billion - all records. Throughout our history, we have been tested by challenging situations, and although we can't predict such circumstances, we rely on the talent and determination of our teams, the financial strength of Votorantim, and the commitment of our shareholders to face them. These characteristics, combined with a prudent yet courageous managerial approach, have been essential to keep us among a select group of Brazilian companies with an investment grade rating by the three main international credit risk agencies (S&P Global Ratings, Fitch Ratings, and Moody's). 4#6In terms of strategy, we have made substantial progress at our portfolio companies and in creating new opportunities for growth. We did the IPO of CBA, paving the way for a new wave of value accretive investments in the aluminum segment. We announced the consolidation of the energy assets held by Votorantim Energia and CPP Investments in Brazil, resulting in the creation of one of the largest renewable energy platforms in Brazil - Auren Energia. At Votorantim Cimentos, we advanced on our international growth strategy through acquisitions in Spain and the conclusion of the combination of our business in North America with McInnis, together with a new partner, the Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ). And in real estate, Altre gained scale with two important acquisitions and new project initiatives. We also advanced our strategy of new investments directly through the holding company - Votorantim S.A., with important moves in the area of infrastructure, with the acquisition of shares. in CCR one of the largest concession and mobility platforms in Latin America, and in the management of our international liquidity. In financial services, banco BV also had historical record results in 2021, maintained its leadership in auto finance in Brazil for the 9th consecutive year and is quickly evolving its digital banking platform. These initiatives make strategic sense as we look at them today and they create optionality for further investments to continue to evolve our business model. They also reflect a portfolio logic, as we maintain our diversification from a geographic, industry and risk perspective. Finally, they reflect the leadership and courage of our management teams under such complex operating conditions. During the year, the companies also advanced the ESG agenda aligned with their business strategies by developing plans, setting goals, and making public commitments, with a particular emphasis on the environmental agenda and decarbonization initiatives. From an ESG perspective, we also have two levers that enhance our portfolio companies' ability to address issues aligned with their strategy. One of them is Reservas Votorantim, which focuses on environmental assets and manages Legado das Águas, the largest private Atlantic Forest reserve in Brazil, where we have developed a business model that is part of the answer to integrating biodiversity into the economy and leveraging solutions to climate change. The other is the Votorantim Institute, a partner of the portfolio companies in the development of social and environmental strategies in the municipalities where we operate, in addition to its focus on major topics of national interest, such as education and citizenship. In 2021, Instituto Votorantim launched iV Ventures, one of the first venture funds in Brazil focused on impact investing in the areas of water, sanitation, housing and the low carbon economy, with funds from Votorantim and our portfolio companies. In 2021, Votorantim also partnered with FCLTGlobal (Focusing Capital on the Long Term), a non-profit organization that develops studies, research, and tools to promote investments and business strategies focused on the long term. We are thrilled to represent Brazil and Latin America in such important debates, bringing light to matters related to the communities and markets in which we operate. 5 =#7Votorantim is a century-old company built with integrity and courage, the dedication of our shareholders, and the commitment and collaboration of many talented people over the years. We have very clear business objectives and a diversified portfolio strategy. At the same time, we are exploring new business models and new opportunities that will generate value and fulfill our purpose of creating positive social and environmental impact through our activities. Our way of going beyond and overcoming challenges led us to a historic year. We thank our shareholders for their inspiration and support in this entrepreneurial journey. We are grateful to our people for their leadership and courage and to our business partners who contributed to our results. We continue to move forward with confidence because, as we say at Votorantim, the future is our territory. João H. Schmidt CEO of Votorantim S.A. = 6 From left to right: Luiz Caruso, Sergio Malacrida, Mateus Ferreira, Glaisy Domingues, João H. Schmidt, Mauro Neto e Marcio Yamachira.#82021 Highlights 10 102-10 The highest consolidated result in Votorantim's history: net revenues of R$49.0 billion, adjusted Ebitda of R$11.5 billion and net income of R$7.1 billion Investment grade rating by the three main rating agencies, following Moody's upgrade to Baa3 IPO of CBA in the Novo Mercado segment of B3 Consolidation of renewable energy assets of Votorantim and CPP Investments in Brazil, creating Auren Energia Significant progress in the internationalization strategy, with acquisitions by Votorantim Cimentos in North America and Spain Altre: new real estate projects and acquisitions First Latin America member of FCLTGlobal, whose mission is to focus capital on the long term to support a sustainable and prosperous economy 7 III#9Portfolio Overview 102-41102-6 | 102-8 Ownership Industry Operations (in no. of countries) Units¹ Employees² Votorantim Cimentos 100% building materials 11 336 12,466 BV 50% finance 2 12 4,573 banco cba 76% aluminum 1 13 6,021 VOTORANTIM energia 100% electric power 1 42 532 nexa metals and 65% 4 13 6,193 mining citrosuco 50% orange juice 4 44 5,038 AcerBrag 100% long steel 1 2 697 altre 100% real estate 1 1 16 1 Includes offices, plants, distribution centers and other units. 2 Includes company employees, interns and apprentices. 8#10Overview ost recent figures 34,000 ployees 19 Countries 535 operating unit worldwide Net Revenues LTM RS485 billion Adjusted EBITDA LTM 110 billion CAPEX LTM The Investment Holding Company 102-6 | 102-9 | 102-15 $4.5 billion Overview Mattress Figcid VOTORANTIM 34.000 mpin TUN count Net Revenues LY idan Adjusts & EBITDALTH CAPEX LIM 545 V#11With 104 years of history, Votorantim S.A. (Votorantim) is a Brazilian family owned company with long term investments. Its portfolio companies operate in 16 countries in the building materials, finance, aluminium, clean and renewable energy, metals and mining, organge juice, long steel. real state, and infrastructure. 102-11102-2 | 102-5 | 102-6 Its includes the Center of Excellence (CoE), a hub for creating products and processes focused on data analytics, innovation, and technology, which consolidates the operations of the Shared Solutions, Real Estate Solutions, and Information Technology Skills Centers. The holding company maintains Reservas Votorantim, a company focused on the management of environmental assets of the portfolio companies and supports their land and water resource conservation efforts. The organization also works in partnership with the Votorantim Institute, which supports the portfolio companies in the development of social and environmental strategies and fosters good social practices with a long-term vision. In its headquarters in São Paulo, Votorantim has 73 employees. Added to the teams of the Votorantim Institute, Reservas Votorantim, CoE, and portfolio companies, the company employs approximately 37,000 people directly and 9,000 indirectly, in 522 operating units. 102-3 Values 102-16 | 103-2 | 103-3 A combination of the values of the shareholder family with the business culture of the portfolio companies, Votorantim's values of integrity, collaboration, and courage (called V3) reflect the attributes that the company promotes internally and externally and the characteristics for which it wants to be recognized. OUR WAY OF BEING! Integrity #Doing the right thing #Respect and ethics #Valuing differences The visual representation of V3 is inspired by DNA: it represents what all portfolio companies and all people who are part of Votorantim have in common and establishes the Votorantim way of doing business and interacting with society. OUR WAY OF DOING THINGS! Collaboration #Shared value creation #Networks and connections #Valuing people V3 OUR WAY OF GOING BEYOND! Courage #Ownership #Innovation #Building the future VOTORANTIM = 10#12✓ Votorantim's DNA Votorantim has consolidated the practices it has followed for more than a century into a document informing and guiding the holding company's and the portfolio company's ways of being, acting, and managing. It consists of three blocks: values, the ways of being and doing things; management pillars, the ways the companies are managed; and governance principles, the ways the companies are governed. The document also has a specific chapter about the company's Social DNA. Social DNA Votorantim's Social DNA has four axes that guide the social and environmental initiatives of the portfolio companies to ensure that they can meet the expectations of the shareholders while leaving a positive legacy for current and future generations. These guiding principles include: ► Finding solutions within and outside the company's boundaries and business models to embed social and environmental aspects into the core business; ▸ Connecting people, skills, goals and economic partners to advance sustainable development; ► Building bridges with local communities and creating democratic spaces for discussion; and ►Maintaining the United Nations (UN) Sustainable Development Goals (SDGs) as a guide for Votorantim's actions, scale of ambitions, and callings Votorantim's Identity At the right time The right time means never missing an opportunity. Every day, we remember that today's decisions impact future results and we must think fast and act in a structured, strategic and assertive manner. We have an innovative mindset; we always look ahead. However, when looking to the future, we must be ready to question what is happening in the present. We must also be ready to respond to changes in the different sectors and countries where we operate. The right way For us, there is only one way of doing things: the right way. Our DNA carries a unique way of being and acting. We see our companies, our employees and society through the lenses of ethics and respect. We have significant expertise in investment and the knowledge we need to continuously improve and perform more responsibly. With the right people We have a clear commitment: to invest in the best of each of us to achieve the best for all, because we believe in the strength of people and their potential to thrive. We are continuously moving forward toward what is new. We positively influence our people through our inspiring leaders. 11 =#13Strategy and Management 102-9 | 102-15 | 103-2 | 103-3 Votorantim: a permanently capitalized investment holding company, with a long-term investment approach, that seeks to deliver superior financial returns with positive social and environmental impacts. Investment thesis Core business Beyond core Beyond business III Strengthening the core: modernization, expansion, and consolidation Value unlocking: extract value from the asset base by leveraging existing skills and capabilities Adjacencies: business opportunities associated with the needs of the companies, and opportunities and risks that follow products and processes New patterns of production and consumption and new business models 22 12#14The essence of Votorantim's management mandate includes achieving the investment objectives of its shareholders, acting in accordance with the pillars of its DNA, and complying with internal financial and dividend policies. Under these guidelines, the investment approach considers macro-themes that apply both to existing businesses and new investments: (i) strengthening the core business through investments in modernization, expansion and consolidation; (ii) extracting greater value from the asset base by leveraging existing skills and capabilities; (iii) operating in business adjacencies, assessing opportunities and risks related to products and processes; and (iv) paying close attention to new production and consumption patterns and business models that can present new opportunities and mitigate risks. Votorantim continues to be focused on having a diversified portfolio of assets, from a geographic, industry and risk perspective. In line with this strategy, a series of impactful initiatives were implemented in 2021, such as: ►IPO of CBA in Novo Mercado segment of B3, in July 2021, raising R$1.6 billion, of which R$700.0 million will be invested in organic growth and strategic acquisitions. ► Consolidation of the energy assets of Votorantim Energia and CPP Investments, which resulted in one of the largest renewable energy platforms in Brazil - Auren Energia ► Announcement of the intention to create a new joint venture focused on the energy transition, decarbonization and new technologies alongside with CPP Investments, with an early-stage bias and broad investment objectives beyond traditional greenfield renewable projects. Establishment of Altre as a real estate investment platform, with acquisitions and launches of new projects. ► Acquisition of a minority interest in CCR, Brazil's largest infrastructure company. ▸ Implementation of a new liquidity management strategy through Janssen, a Dutch holding company that consolidates Votorantim's liquid investments outside of Brazil. ► Announcement of the sale of Votorantim's stake in Acerías Paz del Río, the leader in long steel production in Colombia. All capital allocation decisions are tested against adverse scenarios and are based on the organization's ability to face challenges, considering the qualification of its teams and an adequate capital structure. This diversified and careful approach, combined with the Objectives of the capital allocation strategy Patient capital, non-negotiable purpose In Companies Capital structure that allows for growth and dividends Preserving the capacity to invest: sustaining, modernization and expansion Perpetuate the Votorantim DNA Foster innovation to transform the business model 品 In the Portfolio Financial and strategic flexibility for large scale investments Diversification: ▸ Sectors; ► Geographies; and Risk factors. Delivering on the investment objectives of our shareholders For Shareholders Maximizing total shareholder return (TSR) Long-term sustainability of Votorantim = 13#15courage to invest in the future, places Votorantim among the few Brazilian companies that have an investment grade rating by the three main credit rating agencies. ESG Performance 102-12 102-18 | 102-26 | 102-27 | 102-29 | 102-32 Votorantim's ESG agenda is guided by the continuous promotion of ESG themes as the company maintains its commitment to transparency, improves the quality of the information it discloses, and adapts its report to global methodologies to standardize ESG indicators. The year 2021 marks the 11th publication of the annual report according to the guidelines of the Global Reporting Initiative (GRI). During 2021 Votorantim continued to evolve in the ESG agenda and in its role as an engaged investor, with special progress at the holding level where emphasis was placed on the topics of investment decisions and engagement with strategic stakeholders. According to corporate governance principles, each of the portfolio companies has autonomy to manage ESG issues, in line with its business strategies. In this context, Votorantim has three key ESG- related objectives: ► Influence ► Monitor ► Report Votorantim became the first Latin American member of Focusing Capital on the Long Term (FCLT), a nonprofit organization that develops studies, research, and tools to drive the creation of long-term value. The company is joining more than 70 investors and world-leading companies in this initiative. Votorantim also joined the Entrepreneurs for the Climate initiative, led by the Brazilian Business Council for Sustainable Development (CEBDS, for its initials in Portuguese), with the goal of moving, together with other participating companies, toward a low carbon economy. Some of the portfolio companies, such as Votorantim Cimentos, CBA, and Nexa, also joined the initiative. Progress in this area was also made at Altre, which structured its corporate governance and created its Board of Directors with two independent members; at Votorantim Cimentos and Votorantim Energia, which each of created their Sustainability Commissions; at Citrosuco, which created its ESG Committee and at banco BV and also Citrosuco, both of which became signatories of the UN Global Compact, an initiative that promotes fundamental and internationally accepted values in the areas of human rights, labor relations, the environment, and the fight against corruption. The holding company is also part of the Global Compact's Anti- corruption Call to Action. Influence Influence portfolio companies to adopt environmental, social, and governance best practices, contributing to the long-term sustainability of the business. Monitor Follow the incorporation of ESG criteria into decisions regarding new investments and in the evaluation of the portfolio companies, while also monitoring social, environmental, governance, and reputation risks from Votorantim's perspective. Report Communicate transparently and consistently about ESG initiatives undertaken by Votorantim and the portfolio companies. 14 =#16Signatories of the Global Compact: ► Votorantim Cimentos ► Banco BV ► CBA ► Votorantim Energia ▸ Nexa ▸ Citrosuco Publication of annual reports: ► Votorantim Cimentos ► Banco BV ▸ CBA ► Votorantim Energia ▸ Nexa ▸ Citrosuco Respondents to CDP's public questionnaire in 2021: ► Votorantim Cimentos ▸ CBA ▸ Nexa Green financing: ► Votorantim Cimentos (revolving credit facility) ► Banco BV (green bonds) ▸ CBA (export credit notes) Materiality 102-15 1 102-21 | 102-40 | 102-42 | 102-43 | 102-44 | 102-46 The content of this report is based on the materiality matrix developed by Votorantim in 2018. The stakeholder consultation process included the analysis of documents from Votorantim and the portfolio companies in addition to interviews with internal executives and corporate leaders of the portfolio companies, sustainability professionals, finance specialists, academics, and national and international investors. The data collected and the needs identified were analyzed and informed the definition of high-interest topics, in two categories, to be included in the matrix: (i) topics material to both the holding company and the portfolio companies, and (ii) topics specific to each company depending on the nature of each business. In 2019, the company conducted a study on environmental, social, and governance demands from financial stakeholders. The work was based on the evaluation of the methodologies used in the main sustainability index and by ESG assessment consultants, and considered initiatives such as CDP (Carbon Disclosure Project) and the Task Force on Climate-Related Financial Disclosures (TCFD), which engages companies with the goal of creating a common standard for the assessment, measurement, and disclosure of financial risks related to climate change. The integration of these topics with the company's materiality resulted in the prioritization of issues that are addressed by the investment strategy, communications with stakeholders, and the disclosures of indicators in the annual report. Votorantim also developed a study on the Sustainable Development Goals (SDGs). Learn about the company's material topics and their correlation with the United Nations SDGs. = 15#17Materiality and SDGs at Votorantim Material for Votorantim and the portfolio companies 102-47 STRATEGY AND RESULTS GOVERNANCE ENVIRONMENT SOCIAL ISSUES Long-term vision Capital Financial allocation performance Ethics and Compliance Best practices in corporate governance Corporate risk management Climate change Water resources Health and safety TRABALHO DECENTE 8 ECRESCIMENTO ECONOMICO 16 INSTITUIÇÕES PAZ JUSTICAE EFICAZES AGUA POTÁVEL ESANEAMENTO TRABALHO DECENTE ECRESCIMENTO ECONOMICO Community relations 9 NDUSTRIA, INOVAÇÃO EINFRAESTRUTURA 3 SAUDEE BEM-ESTAR EDUCAÇÃO DE QUALIDADE 8ECRESCIMENTO TRABALHO DECENTE ECONOMICO 12 CONSUMOE PRODUÇÃO RESPONSÁVEIS AÇÃO CONTRA A 13 ACAD MUDANÇA GLOBAL DO CLIMA Specific topics of the portfolio companies 102-47 Votorantim Cimentos BvV Danco cba VOTORANTIM energia nexa citrosuco AcerBrag Energy use Innovation and client relations Energy use and tailing dams New investments Tailing dams Land use and pesticides Energy use TRABALHO DECENTI TRABALHO DECENTE ECRESCIMENTO ECONÓMICO ENERGIA LIMPA EACESSIVEL ENERGIA LIMPA EACESSIVEL INDUSTRIA, INOVAÇÃO EINFRAESTRUTURA ECRESCIMENTO ECONOMICO M 12 CONSUMOE PRODUÇÃO RESPONSAVERS 8萬 13 ACAD CONTRA A MUDANÇA GLOBAL DO CLIMA TRABALHO DECENTE ENERGIA LIMPA EACESSÍVEL 11 COMUNIDADES SUSTENTÁVEIS INDOSTRA INOVAÇÃO E INFRAESTRUTURA E CRESCIMENTO ECONOMICO M 11 CRANESE COMUNIDADES SUSTENTÁVEIS A 12 CONSUMO PRODUÇÃO RESPONSÁVEIS QO 13 ACAO CONTRA A MUDANÇA GLOBAL DO CLIMA 16 CIDADES E COMUNIDADES SUSTENTÁVEIS PAZ. JUSTIÇA E EFICAZES 16 INSTITUIÇÕES reservas VOTORANTIM Biodiversity and deforestation FOME ZERO TRABALHO DECENTE ECRESCIMENTO ECONOMICO ENERGIA LIMPA EACESSÍVEL TRABALHO DECENTE VIDA ECRESCIMENTO TERRESTRE ECONOMICO CIDADES E A 12 CONSUMDE PRODUÇÃO RESPONSÁVEIS 8 2 FAGRICULTURA SUSTENTÁVEL INDUSTRIA, INOVAÇÃO EINFRAESTRUTURA 12 CONSUMO PRODUÇÃO RESPONSÁVEIS & AÇÃO CONTRA A 13 MUDANÇA GLOBAL DO CLIMA =#18H People Visit the Votorantim website in O A 103-1 | 103-2 | 103-3 At Votorantim, the area of human and organizational development was integrated with the objective of prioritizing people and communication. During the year, the main initiatives for attracting, engaging, developing, and recognizing talent were maintained. One of them, the internship program, which was fully remote due to the pandemic, included 22 interns. As part of the program (which, this year, included four virtual meetings to engage and develop the participants' managers), interns met with the CEO, João Schmidt, to share perceptions and lessons learned. The Votorantim Experience, a summer internship program, took place at the beginning of the year and was adapted and associated with Friends from Poli, an endowment fund that invests in development projects for students at the Polytechnic School of the University of São Paulo (USP). The initiative included 13 students who went through a six-week immersion experience; two of them were later incorporated into the regular internship program. To help support college funds, the company established a partnership with the Sempre FEA Endowment, a fund created by alumni of the College of Economics and Administration of USP (FEA-USP, for its initials in Portuguese) through which resources are used to support community projects of students, teachers, employees, and entities representing these categories. The endowment drives education and encourages research, diversity, innovation, and professional training for the challenges of the future. In 2021, more than 50% of the students who enrolled at USP came from public schools and, specifically at FEA-USP, 37% were Black and Indigenous. Through initiatives = 17#19to support the education of these students, this partnership will help to increase diversity within entry-level positions at Votorantim. Votorantim carried out activities with 10 financial market leagues, including two virtual workshops and 10 other initiatives as part of the Ambassadors program, which aims to promote Votorantim's employer brand among external audiences, especially universities. These included meetings, lectures, and workshops involving 31 ambassadors. In the area of professional improvement, in addition to the resources offered by the Votorantim Development System (SDV, for its initials in Portuguese), such as coaching, counseling, and discussions, a specific assessment tool on emotional intelligence was added to the process given the issue's increasing importance in the corporate world. This evolution process included all employees and resulted in the creation of individual development plans. In addition, through Votorantim Academy, which is available to employees of the holding company and of all portfolio companies, the company hosted Vototalks, a dialogue platform for people who are leaders on topics that influence the business environment. One of them addressed sustainability challenges and opportunities for companies and had the participation of a key global opinion leader in ESG, Amelia Miazad. The other Vototalk was about learning to rethink and led participants to reflect on human behavior, organizational climate, and the pursuit of a purpose. It was facilitated by organizational psychologist, author, and professor Adam Grant, who is recognized as one of the 10 most influential management thinkers in the world. In addition, the company hosted webinars on topics such as diversity, health, and the environment, creating opportunities for questions, discussions, and the practical application of courses offered by the Votorantim Academy. In the first semester, Votorantim concluded the Potenciar (Potentialize) program, which included 69 employees. This is a company initiative that aims to provide guidance on self-knowledge, the holding company, and society, aiming to facilitate the exchange of experiences and promote the personal and professional development of the participants. Other important topics that were addressed this year were diversity and gender equality, with a focus on supporting institutions that work in these areas. Recognizing the importance of ensuring female participation in its staff, the holding company entered into a partnership with Fin4She to carry out collaborative activities. This year, the company also joined LIFT, an affirmative action initiative to promote racial equality by teaching English as a tool for social mobility. The program is open to Black people enrolled in college in the cities of São Paulo, Rio de Janeiro, Belo Horizonte, and Salvador. It offers two years of English courses and mentoring sessions with leaders from partnering organizations, as well as workshops for personal and professional development. = 18#20Health Thanks to the higher number of people vaccinated against COVID-19, in the second half of the year the holding company offered its employees the option to return to in-person work in the office. The process was carried out safely and followed health protocols that included weekly testing, mask use, and daily temperature checks. Under the active coordination of a doctor, all 37 employees who contracted COVID-19 were monitored and made a full recovery. Benefits 402-1 ►Health and dental insurance ► Life insurance ► Private pension ► Christmas food voucher ▸ Medical care ►Telemedicine ▸ Executive health check-up This year, Votorantim held, once again, Semana+Vida (Health Week), which was rebranded to VSAúde (VSAHealth) in reference to the name of the holding company and the focus of the initiative. The event, which was held online, discussed issues related to nutrition, sleep, physical health, and mental health and included challenges with prizes to the participants. VSAúde also included a flu vaccination campaign, which was carried out in a drive-through format. ► Pregnancy program ► Lactation room Flu vaccine ▸ Fruits ▸ Gym allowance ▸ Agreements with Serviço Social do Comércio (SESC) units The benefits that had been added in 2020 because of the pandemic were maintained in 2021: psychological assistance, the option of exchanging restaurant vouchers for food vouchers, and loans of furniture and equipment to improve remote work conditions. Reputation Votorantim's positioning as an investment manager has been established through high- quality exposures that help maintain the holding company's positive reputation and is aligned with the challenges of the business. Votorantim also engages different stakeholders by promoting institutional initiatives and by successfully participating in the main social media platforms: at the end of 2021, the company had approximately 11,000 followers on Instagram and its 14 videos on YouTube had accumulated more than 26,000 views. LinkedIn continues to be the most important social media platform for Votorantim: the company has almost 400,000 followers. In December, engagement grew by 75%. Internally, to align and cascade the leadership's business guidelines to employees, the company held two Votorantim meetings virtually. And to bring internal and external stakeholders closer together, the holding company continued to host Voto Cast-the seven podcasts released during the year had an average of 730 listeners. One of the highlights was an episode that discussed the topic of women in the financial market with the participation of Fin4She. 19 =#21Governance, Compliance, and Risks 103-1103-2 | 103-3 Corporate and Business Structure Hejoassu = VOTORANTIM Votorantim Cimentos Banco BV CBA Votorantim Energia Nexa Citrosuco Acerbrag Altre Administrative Structure Family Board Votorantim Institute Hejoassu Board VOTORANTIM Board of Directors Reservas Votorantim Executive Board 20 =#22Governance structure 102-18 | 102-19 | 102-20 | 102-24 | 102-26 | 102-27 | 102-29 | 102-31 Votorantim's governance is built around three axes that are represented by integrated bodies with different responsibilities: ▸ Ownership, represented by the Board of Hejoassu, the holding company that owns the conglomerate ► Family, represented by the Family Board ► Businesses, led by two complementary bodies: the Boards of Directors and the Executive Boards of Votorantim and the portfolio companies All of Votorantim's companies adopt robust governance standards and structures, including those in which Votorantim is the sole shareholder, and its practices are in continuous evolution. Each company has also adopted its own solid governance model that includes its own Board of Directors, advisory committees and Executive Boards, which are responsible for deliberating on strategies, management and investments. The Board of Directors of each company is made up of shareholders, employees from the holding company, and external and independent members. Members of the Hejoassu Board, the Family Board, and Votorantim's Board of Directors are elected for three-year terms. The first two operate independently from the holding company, but all remain integrated through formal and periodic meetings. Additionally, Votorantim frequently assesses the performance of the Boards and committees, contributing to the evolution of governance. Hejoassu Board The Hejoassu Board is composed of 12 shareholders, three from each of the four family holding companies. It is responsible for conveying to the organization its macro vision, financial aspiration, and risk appetite and for appointing the members of the Board of Directors of Votorantim. The Board is also the guardian of Votorantim's culture and DNA by ensuring alignment with the family's calling. In its sixth generation, the family is made up of 169 people, of whom 53 are shareholders. Family Board At the end of 2021, the Family Board had seven members, (six Family Values Integrity Being ethical and acting with integrity, honoring our history, and creating the future with respect Unity Honoring the history that unites us, valuing our collective power, and owning the creation of our legacy women and one man), two from the fourth generation (chairman and deputy chairman) and five from the fifth generation. The annual initiatives to promote the education and development of the new generations and increase awareness of the whole family continued to take place online as a result of the pandemic. The Generosity Being generous with yourself, the family, and society Impact Working with dedication and achievement-focused energy, driven by the power to innovate and transform Courage Persevering, always being open to learning and evolving, and believing that everything is possible Passion Having freedom and motivation to find and pursue your passions = 21#23lectures and live virtual events addressed topics such as career and market challenges, ESG investments, democracy, and the electoral political system, among others. With the purpose of aligning the Board's agenda to issues that are strategic to the family, the highlight in 2021 was the Raízes (Roots) project. Led by the fifth generation, it focused on reviewing the history of women in the family and reflecting on their roles in society over the years. The initiative included interviews, social analyses and surveys, consultations with experts, and workshops. Social engagement is one of the Board's priorities and is part of the family's education model. The social activities gained scale in 2021 thanks to a partnership with the Votorantim Institute. Inspired by the Família Engaja (Engaged Family) campaign, the initiatives, held in São Paulo, had two main focuses: food donation and, in winter, collection and distribution of essential items for people in situations of financial vulnerability. In addition, the Board hosted another Família Inspira Família (Family Inspires Family) meeting, in which family members shared their personal endeavors, social perspectives, and challenges. The Social Committee was created three years ago to strengthen the family's historical relationship with three institutions: BP - A Beneficiência Portuguesa de São Paulo, A.C. Camargo Cancer Center, and Associação de Assistência à Criança Deficiente (AACD). The committee focused on directly supporting structuring projects to leave a legacy to society. At the end of the year, the Family Board concluded the preparations for the leadership transition that will take place in 2022 when, for the first time in the governance process, two fifth-generation members will occupy the positions of chairman and deputy chairman. This transition process has been in preparation for over a year and involved assessments, competency memória VOTORANTIM Created in 2003 as part of the celebration of Votorantim's 85th anniversary, the purpose of Memória Votorantim is to map, record, and preserve documents and promote knowledge about the holding company's history. In its almost 20 years of operation, the role of Memória has evolved and it is currently responsible for maintaining the historical record and for producing content based on Votorantim's past and present and the histories of the portfolio companies, their entrepreneurs, and employees. Its historical collection and responsibility for analyzing and managing knowledge are divided into three main areas: ► Reputation ▸ Organizational culture ► Sense of legacy These areas complement each other and enable the development of projects, products, and in-depth research on the holding company's trajectory. The collection of Memória Votorantim is open to all employees and the public by appointment. Part of its collection of more than 600,000 items-which includes photographs, documents, objects, audio, and films-has been digitalized and can be accessed online. Visit the Memória Votorantim website 22 =#24analyses, and discussions about complementarity and profile diversity. Board of Directors Made up of seven members, Votorantim's Board of Directors is responsible for developing the strategic plan and the initiatives needed to put it into practice, deliberating on capital allocation, appointing the members of the Executive Boards and Boards of Directors of the portfolio companies, and monitoring their performance. Of the seven members, four are independent, including the chairman. Executive Board 102-221 102-23 Eduardo Vassimon Chairman José Roberto Ermírio de Moraes Deputy Chairman Cláudio Ermírio de Moraes Luís Ermírio de Moraes Marcelo Medeiros Marcos Lutz Oscar Bernardes Executive Board The Executive Board includes the CEO and five executive officers and is responsible for conducting the business in accordance with the guidelines outlined by the Board of Directors. Executive Board 102-221 102-23 João H. Schmidt CEO Glaisy Domingues Luiz Caruso Marcio Yamachira Mateus Gomes Ferreira Mauro Ribeiro Neto Sergio Malacrida Compliance 102-17 | 102-25 Votorantim has a solid structure to support its commitment to managing its businesses with integrity and transparency. One of the resources used by the company is the Compliance Program, which is based on Votorantim's Values and Code of Conduct and serves to guide the holding company's efforts in different areas. In 2021, the guidelines and processes established by the Compliance Program were reinforced to further align them with the investment manager's performance model. This work included (i) a review of the due diligence process and methodology to make them more strategic and effective in supporting the team responsible for new investments in its integrity analyses; (ii) the improvement of document management practices through the review of policies, manuals, and procedures and the implementation of a new internal platform to manage and centralize all normative documents; and (iii) the launch of the Compliance Portal, which centralizes the main activities carried out periodically by Votorantim employees, such as anti-corruption and Code of Conduct training, Compliance Declarations, Records of Interaction with Government Officials and donation or sponsorship requests, which must be evaluated by the compliance team. Pillars of the Compliance Program ► Laws and regulations ► Licenses, authorizations, and certifications ► Contracts and agreements ▸ External reports ► Competition defense/antitrust ► Loss and fraud prevention ► Corruption prevention = 23#25Ethics Line 0800 89 11 729 Visit the Ethics Line website The Anti-Corruption and Antitrust Policies and the Code of Conduct are part of the compliance structure. They must be observed by every new employee and communicated to suppliers, who must commit to complying with Votorantim's ethical standards. Contracts signed with the holding company include clauses related to the fight against corruption, the defense of human rights, and data protection in addition to other topics upon which the approval of suppliers is conditioned. The Ethics Line is available to all stakeholders to help them learn about, assess, and address issues related to the Code of Conduct. All contact made with the Ethics Line is completely confidential to preserve the identity of the users. In line with its commitment to strong internal controls, Votorantim conducts internal audits through a third-party company and submits its economic and financial results to an external audit conducted by PricewaterhouseCoopers. Among the initiatives to reinforce the communication and culture of compliance, Votorantim promoted Compliance Week, an annual event that involves the leadership of all portfolio companies. In 2021, the fifth Compliance Week was held online and welcomed Professor Jim Detert from the University of Virginia, who spoke about the importance of courage as a value to ensure business integrity. In addition, a second event featured specialists Clarissa Lins and Sonia Favaretto, who participated in a panel that addressed topics such as the importance of compliance to ESG issues and the main challenges for companies and investors in advancing this agenda. 205-2 During the year, working groups made up of risk and compliance representatives from the portfolio companies and the holding company held meetings to promote and share best practices in this area. Risk Management 102-9| 102-10 | 102-11 | 102-30 In 2021, Votorantim concentrated its efforts on developing the Business Continuity Plan, aimed at its critical processes, and on mapping continuity risks, with a focus on insurable risks to be included in the Insurance Policy. The first completed phase included consultations with all areas of Votorantim to understand their main processes. Based on this assessment, the company will map the continuity risks and develop related contingency plans. The next planned step is to provide training to prepare teams to incorporate these protection steps. The initiative will further strengthen the risk management processes and the methodology already adopted by the holding company considering the increased complexity of the external environment, enhanced by the pandemic, and other situations that can put business objectives at risk. With regard to financial risks, Votorantim annually updates and submits its Financial Policy for approval by the Board. The objective is both to preserve credit quality and to ensure that the metrics are compatible with an investment grade company. The Board of Directors and the Executive Board are part of the governance structure and participate in the execution of the financial risk management process. 24 =#26S283 B2 BRL 155.73 100x900 -0.92 $$5.72/55.735 At 16:28 d Vol 5,074,800 0 55.405 57.005 L 54.685 Val 340.06M Sugested Charts Actions - 80 Edit SANSE - Economic and Financial Performance 103-1 | 103-2 | 103-3 = Simant & comowe brok DELL P A en C-2 Line Chart 2021 Results 102-7 The meaningful increase in vaccination rates resulted in the relaxation of restrictions related to the pandemic, thus providing a resumption of economic activity. In sync with the recovery of the global economy, all portfolio companies had positive results, which contributed to historic consolidated results for Votorantim. In the consolidated view, Votorantim's results consider the operations of Votorantim Cimentos, CBA, Votorantim Energia, Nexa, Acerbrag, and Altre. The results of banco BV and Citrosuco are reported according to the equity method. Year-end consolidated net revenue was R$49 billion, 39% higher than in 2020. The growth was primarily driven by better operating results linked to price and sales volume in the cement, metals and mining, and aluminum businesses. 25#27Votorantim Cimentos had higher sales volume in all regions where it operates and positive price dynamics, especially in Brazil. Nexa also benefited from the positive effect of a higher sales volume, combined with the positive effect of metal prices. At CBA, the results were driven by the higher price of aluminum. Consolidated adjusted EBITDA totaled R$11.5 billion, an increase of 70% compared with 2020, and was the highest result obtained by Votorantim in its entire history. Votorantim ended the year with consolidated net income of R$7.1 billion, compared with a net loss of R$3.1 billion in 2020. The company also benefited from the positive effect of R$4.5 billion related to the recognition of a 15% interest in the long steel business of ArcelorMittal Brasil S.A. In compliance with accounting rules, this interest is recognized as a financial instrument measured at fair value through profit or loss. At the end of 2021, gross debt totaled R$25.0 billion, remaining stable in relation to 2020. Cash, cash equivalents, and financial investments totaled R$16.6 billion, of which 33% are in reais. In September, Votorantim ended its US$200 million revolving credit line. On the same day, Votorantim Cimentos and CBA concluded negotiations for two new revolving credit lines (US$250 million for Votorantim Cimentos and US$100 million for CBA). These credit lines, both maturing in 2026 and not yet disbursed, strengthened Votorantim's consolidated liquidity position, which totaled R$18.7 billion in December 2021. Year-end net debt was R$10 billion, 12% lower than in December 2020, and financial leverage, measured by the net debt to adjusted EBITDA ratio, was 0.87x, the lowest since 2008. NET REVENUE In BRL billions By company (%) 49.0 8 35.4 16 44 2020 2021 In BRL billions 28 Votorantim Nexa CBA Votorantim Acerbrag Cimentos Energia ADJUSTED EBITDA By company (%) 11.5 51 15 6.7 33 46 2020 2021 Votorantim Nexa Cimentos CBA Acerbrag Others 26 =#28As a consequence of these exceptional results, in 2021, Moody's upgraded Votorantim's rating from Bal to Baa3 with a stable outlook, highlighting the diversified portfolio and cost- competitive operations of the portfolio companies in addition to a positive scenario for the sectors in which the company operates. Thanks to that, the holding company became part of a select group of Brazilian companies with an investment grade rating by the three main global credit rating agencies: Moody's, S&P Global Ratings, and Fitch Ratings. The high level of transparency that marks Votorantim's relationship with investors, analysts, and creditors-in line with that of publicly traded companies—was also highlighted by the agencies. To communicate with investors and analysts, Votorantim maintains a dedicated space on its Investor Relations website, which includes, among other information, operating and financial results and market announcements. Visit the Investor Relations website NET PROFIT In BRL billions (3.1) NET DEBT/ADJUSTED EBITDA GROSS DEBT BY TYPE TOTAL IN 2021: R$25.0 BILLION (x times) 1.67 3% 2% 7.1 1.37 6% 0.92 0.87 0.87 10% 21% 58% Bonds Bank loans Debentures. Development agencies. Export credit 2020 2021 Dez./20 Mar./21 Jun./21 Set./21 Dez./21 27 Others =#29Social Investment 103-1 103-2 | 103-3 Fulfilling its committed to society, Votorantim invests in the areas of education, citizenship, and health in partnership with the Votorantim Institute and has the role of influencing the portfolio companies to generate social and environmental value through their businesses. In 2021, the Votorantim Institute implemented 244 projects in 146 municipalities in Brazil, continuing its work in response to the pandemic and its social and environmental initiatives. One of the projects that stood out during the year was the Partnership for the Enhancement of Education (PVE, for its initials in Portuguese). This initiative, aimed at improving public education, continued to focus on activities to fight the pandemic and resumed its work to strengthen the skills developed in municipal schools and districts. Through remote learning initiatives, adaptation of teaching methods, guidance on resuming classes, and the development of learning loss recovery strategies, PVE helped 53 of the 68 towns served by the project achieve the expected skill development levels. In view of the positive results, Votorantim reaffirmed its commitment to education by extending the initiative to a new four-year cycle, during which new skills will be developed, including a focus on learning, people development, and integrated management under the umbrella of PVE 2.0. III#30The Via Solidária (Solidary Way) campaign, organized in partnership with the portfolio companies to promote the culture of donation, continued during the year and benefited 14 projects to ensure the protection of the rights of children and adolescents. In its fifth year, the campaign, which allows employees to donate between R$10 and up to 6% of their income taxes, raised approximately R$880,000 (a 41% increase compared with 2020) and had a 109% increase in the number of participants. In 2021, Desafio Voluntário (Volunteer Challenge), a collection of volunteer activities carried out by the holding company and portfolio companies, made a difference in the lives of people and communities in Brazil and Latin America that were heavily affected by the COVID-19 pandemic. The program, in the form of a healthy competition between the companies, launched three thematic challenges during the year: ► More resilient communities: emergency actions that offered support or assistance to people and communities impacted by the pandemic ► Leaders of development: activities in which the volunteers used individual abilities or technical skills to support social organizations, people, and communities ► The company's cause: volunteer initiatives that were aligned with the social and/ or environmental strategy of each company More than 200 activities were carried out throughout the year, involving more than 1,250 volunteer employees and benefiting approximately 58,450 people. Some of the important initiatives included (i) training programs for women in civil construction, in partnership with Votorantim Cimentos employees; (ii) initiatives to promote gender equality in the town of Três Marias, where the Mais Mulher (More Women) group was created by Nexa volunteers; and (iii) the distribution of lunch kits to financially vulnerable people, carried out by the CBA team. The citizenship program, which promotes activities to empower citizens, advanced on two fronts: support for local projects focused on young people and the strengthening of a network of organizations that work to promote citizenship and democracy in Brazil. On the first front, the program promoted initiatives to strengthen political participation and the culture of democracy in the regions prioritized by five portfolio companies (Votorantim Cimentos, CBA, Votorantim Energia, Nexa, and Citrosuco). In 2021, it benefited 300 people through more than 40 engagement activities. The second front focused on solutions to address the challenges regarding citizenship and the Brazilian democratic culture identified in the corporate ecosystem, on three levels: innovation, knowledge, and networks. With regard to innovation, the program launched the Challenge for Democratic Culture, which aims to support four innovative initiatives to promote citizen participation. In the area of knowledge, the program is supporting the implementation of studies on citizenship in Brazil through the development of a systemic map that will deepen the understanding of challenges and levers for democracy. Finally, through its focus on networks, the program seeks to improve networking and partnerships with other organizations that already work on the issue of citizenship, aiming to further strengthen this ecosystem. 29 =#31Fighting COVID-19 Although the effects of the health crisis subsided over the course of 2021, Votorantim maintained most of its initiatives to support communities in addition to investing in new ones, such as Tele ICU and Support for Public Health Management (AGP, for its initials in Portuguese), conducted together with the Brazilian National Bank for Economic and Social Development (BNDES, for its initials in Portuguese). Tele ICU benefited hospitals in 12 municipalities. Through this project, doctors from BP-A Beneficência Portuguesa de São Paulo participated, virtually and in real time, in the daily visits to patients in intensive care, exchanging knowledge and sharing solutions with the local doctors caring for them. This not only provided better care to the patients but also helped develop the healthcare professionals in these towns. The AGP program offered technical mentoring to healthcare teams in the 40 municipalities where the portfolio companies operate and in another 40 locations selected through a public call for proposals carried out in partnership with BNDES. The objective was to provide support to improve skills and management processes to help fight COVID-19 and offer comprehensive healthcare. During the year, the Municipal Vulnerability Index (IVM, for its initials in Portuguese) was also updated to identify locations with high levels of vulnerability to enable not only the proper allocation of resources, but also the design of more successful strategies to fight the pandemic. In 2021, the construction of vaccine plants in the cities of São Paulo and Rio de Janeiro, a project that had received financial support from Votorantim in 2020, was also completed. instituto VOTORANTIM The Votorantim Institute, a center for intelligence applied to social and environmental issues, revised its strategy in 2021. The objective was to align with the challenges of the portfolio companies and leverage business opportunities to create impact. In addition, the institute started to provide other organizations with products and services that had already been developed to serve the portfolio companies. In 2021, the institute continued to create value for the portfolio by developing ESG strategies for CBA, Nexa, and Citrosuco, including the development of sustainable suppliers. It also created an impact strategy for the Associação de Assistência à Criança Deficiente (AACD), an organization supported by the Family Board. One of the highlights was the launch of iV Ventures, an impact fund with resources raised by the Votorantim Institute and the portfolio companies that will be allocated to the identification of early-stage solutions developed by start-ups in the area of low carbon economy, water and sanitation, and social housing. Visit the Votorantim Institute website Visit the iV Ventures website Visit the IVM website 30#32gis Simples Digitais III Center of Excellence (CoE) 102-6 | 102-9 | 103-2 | 103-3#33The Center of Excellence (CoE) Votorantim's intelligence, innovation, and technology center-develops solutions in the areas of information technology, finance, accounting and taxes, human resources, real estate, innovation, and data use (analytics). People In 2021, the CoE officially adopted a hybrid work model (a combination of remote and in-person work) for its nearly 900 employees working in the cities of Curitiba, Lima, and São Paulo. To optimize the use of offices, a check-in app was created to help manage the space. To care for people, the CoE improved its quality-of-life program by increasing the number of discussion events, creating virtual therapeutic spaces, and offering counseling to all employees. In the area of people management, the CoE maintains InPulse, an individual development program created internally to understand the challenges faced by employees and create plans to help them overcome these barriers. InPulse included 100% of employees and was recognized with the Abe Award in the Performance Management category from the Peruvian Chamber of Commerce. To promote diversity, an important issue for the CoE, the center created the Women in Action program, which trained 34 professionals on topics such as self-knowledge and bias, and created a group of ambassadors, made up of men in leadership positions, who are responsible for welcoming and supporting women in their activities. Innovation and Product Development The goal of the CoE is to lead the innovation process to produce original, effective, and integrated solutions that can address common needs of companies. The products are developed in three segments: people analytics, industry, and digitalization. In 2021, the CoE worked on 20 initiatives some of them have turned into products that are already available to companies outside the Votorantim portfolio. In people analytics, the highlights are Flight Risk, an algorithm that can predict, with 94% accuracy, which employees are likely to leave the company and when they might resign, helping managers and human resources areas retain talent; and Critera, a health and benefit management tool used by companies in Votorantim's portfolio to manage a combined total of 21,157 employees. An assistance module for pregnant women was added to Critera, through which a woman can follow her baby's development and learn tips for a healthy pregnancy. To support the portfolio companies in industrial segments, the CoE developed Sykn, an algorithm focused on loss prevention that identifies risks and waste in business transactions. This solution was acquired by one of the largest food companies in the world and, at the end of the year, was being tested by two other companies in the infrastructure sector. Another tool with commercialization potential is Harpi, an artificial intelligence (AI) solution that automates the purchasing of goods and services, thereby enabling procurement areas to make decisions with greater levels of predictability and compliance. Another Al tool, Registration Intelligence, simplifies procurement processes by identifying redundancies and waste. Together with the portfolio companies, the CoE also developed Smart Sensors, a model for predicting energy prices that, when installed in production lines, enables the remote management of industrial complexes, and Digital Smelter, which simulates scenarios for optimized metal production planning. 32 =#34In the area of digitalization, the CoE maintains a marketplace of information technology services that includes registered professionals who can be identified through a system that matches the needs of the customers with the skills of each professional, simplifying the hiring process. A similar solution, also being tested by the portfolio companies, is IzCheck, a web platform that analyzes data to ensure compliance with legal standards in due diligence processes. This tool streamlines the consultations with suppliers and registration processes, making them more effective. Votorantim Cimentos is testing a CLC prototype-a customer relationship management system equipped with data intelligence for strategic marketing that can identify customers who are likely to remain in an online commercial transaction to the end. Despite being used in a minor business segment, the solution resulted in a 40% increase in sales through the e-commerce channel. О An important step in the CoE's governance strategy was the creation of a supervision committee, with the participation of the CFOs of the companies in Votorantim's portfolio, to work on its continuous improvement in partnership with the portfolio companies. 33 =#35Reservas Votorantim 103-1103-2 | 103-3 Nature-based solutions. III#36reservas VOTORANTIM Reservas Votorantim materializes Votorantim's commitment to the conservation of land and water resources and to the development of communities through the management of Legado das Águas. This company, which in 2021 gained its own brand and headquarters, specializes in land management and nature-based solutions for both traditional and new economy businesses. It manages Legado das Águas, the largest private Atlantic Forest reserve in Brazil, with approximately 31,000 hectares in the towns of Juquiá, Miracatu, and Tapiraí in the state of São Paulo; Legado Verdes do Cerrado, a approximately 32,000-hectare private reserve for sustainable development, headquartered in Niquelândia in the state of Goiás; and Pátio Caeté, a space for the sale of native plants in the city of São Paulo. Through its businesses, Reservas Votorantim develops activities and offers services that combine the conservation of nature and water resources with the responsible use of land and local development. It works in the areas of ecotourism, landscaping, production and commercialization of native plants, space rental, environmental studies, reforestation, and environmental compensation, among others. Some of the highlights are the ecotourism activities conducted at Legado das Águas, which resumed in the second half of the year as the pandemic subsided. New services in 2021 included rafting and new accommodations, offered in partnership with the company Altar, in the form of a "floating house" in the middle of the Juquiá River reservoir to welcome guests looking for a peaceful refuge in contact with nature. In 2021, Legado das Águas received the Seal of Quality in Tourism, granted by the Brazilian Service of Support to Micro and Small Companies of São Paulo (SEBRAE, for its initials in Portuguese) and the Intermunicipal Development Consortium of Vale do Ribeira and Litoral Sul (CODIVAR, for its initials in Portuguese). This certification recognizes organizations in the tourism industry that help promote the Atlantic Forest region as a national tourist destination. In the area of landscaping, Reservas tripled its production capacity of native species and signed a contract with a developer to provide landscaping services to one of its real estate projects. The deal is linked to the company's purpose of bringing native flora back to urban centers. In this same market, Pátio Caeté, which sells native species, completed one year of operations and has been establishing itself as a space for the appreciation of Brazilian flora. Visit the Reservas Votorantim website in Visit the Legado das Águas website 35 =#37In the area of reforestation, Reservas signed contracts to plant native species in public parks in the state of São Paulo, such as the 15-hectare park Jurupará in Ibiúna, where the government develops the Nascentes (Springs) program. The area is also used for voluntary environmental compensation, a business segment divided into two platforms: Plantando o Amanhã (Sowing the Future), to assist companies in their carbon capture strategies through the planting of a variety of forest species; and the Palmito Juçara (Juçara Hearts of Palm) project, with plantations to expand the presence of this protected species in the Atlantic Forest and promote business with communities based on the production of hearts of palm. Also related to the production chain is the legal reserve model for environmental compensation. To comply with the Brazilian Forest Code, which requires farmland owners to maintain an area of Atlantic Forest biome corresponding to 20% of their total property, they can opt to fulfill their compensation commitment by leasing an equivalent area of native forest in another property. Also, Votorantim's participation in the Pomar Urbano (Urban Orchard) project progressed during the year. Landscaping of native woods and playgrounds was incorporated into the proposal of the Bruno Covas Linear Park on Marginal Pinheiros in the city of São Paulo, which will be concluded in 2022. To promote community development, Reservas Votorantim launched, in partnership with researchers from the Butantan Institute and the Santo Amaro University, the Saúde Única (Single Health) program. Through this initiative, all the knowledge acquired through research conducted at Legado das Águas will be made available to the towns of Juquiá, Miracatu, and Tapiraí to help promote training and educational activities for their healthcare professionals. In line with Reservas' governance in the area of social responsibility, scientific research evolved in 2021. Key projects in Legado das Águas included the study of amphibians, coordinated by the Butantan Institute, which can inform the creation of an ecotourism handbook for observing these animals, and the identification of jaguars, conducted by the organization Onçafari, which is expected to support the creation of a jaguar sighting route. = 36#38Altre More than a real estate company. altre Apresentação instituciona Faltre III#39altre Visit the Altre website in Established at the end of 2020 as a platform for Votorantim's real estate investments, Altre made progress in several areas during its first full year of operation, starting with the creation of its governance structure, the appointment of a CEO, and the establishment of a Board of Directors that includes independent members. Altre chose to settle in Vila Leopoldina, a neighborhood in São Paulo where, since 2016, the company has been conducting an innovative project of urban renewal aligned with the concept of smart cities, combining economic development with social gains. In 2021, the project got a name, Spark, and its own brand. It includes the ARCA entertainment space and the STATE innovation and technology hub, both of which are former warehouses owned by the holding company that were retrofitted and repurposed, in addition to the Atlas Office Park, which houses corporate offices. Most of the events hosted by ARCA in 2021 were held online due to the pandemic. Of the events held in person, the most important was the São Paulo International Art Festival (SP-Art), which attracted approximately 7,000 people per day over the course of five days. As the health crisis subsides, ARCA's schedule of events for 2022 is getting increasingly busier. Next to STATE, construction work for the expansion and retrofitting of new office spaces was completed during the year. Part of the space has already been leased and now houses the new headquarters of a large furniture and decor company. At the Atlas Office Park, where Altre's headquarters are located, the highlight was the acquisition of the remaining 50% stake in the project, which is now fully owned by Altre. Spark is expected to continue to make progress in 2022, when the external areas, which are being sought for music and gastronomic events, are expected to be rented. In the long term, approximately 40,000 square meters will undergo transformations that are currently being designed, authorized, and awaiting licenses and permits. Spark is part of the Vila Leopoldina Villa Lobos Urban Intervention Project proposed by the company to revitalize and address issues of public interest in the region, which is home to some vulnerable communities. The objective is to provide decent and high-quality housing an initiative that depends on a change in the zoning law of the city of São Paulo that requires approval by the city council in two rounds. At the end of 2021, the company submitted the final reports recommending approval by the thematic committees and the project received the first round of approval. Altre also made important progress in the development of planned neighborhoods. One example was the launch of Vivalegro, a new neighborhood in the town of Votorantim in the state of São Paulo, where all 450 phase-one lots have been sold. This initiative was the first step in Altre's strategy to develop its own assets. At the same time, the company is in the process of licensing the first phase of a planned neighborhood in the town of Paulista in the state of Pernambuco, which is expected to be launched in 2022. On the agenda of new investments, in addition to the recent acquisition of the Atlas Office Park, Altre acquired 60% of the corporate tower Alto das Nações, which, once completed in 2025, will be the tallest building in São Paulo. The company also began prospecting for real estate investment opportunities in the United States. 38 =#40Portfolio Companies 103-2103-3 The portfolio companies demonstrated their significant adaptability and resilience. They reaffirmed their values and strategies. All companies achieved good results despite the challenges they faced in 2021, which included a shortage of inputs, cost increases, and logistical issues combined with the impact of the pandemic on employees and their families. In addition to their results, the companies advanced their strategies and made important progress during the year. The main highlights include (i) the international expansion of Votorantim Cimentos, especially in North America and Spain; (ii) the increased digitalization of BV; (iii) the IPO of CBA; (iv) the announcement of the consolidation of Votorantim Energia's energy assets, in a transaction involving CPP Investments and other CESP shareholders; (v) Nexa's preparation to start operating a new polymetallic mine, Aripuanã, in 2022; (vi) the social and environmental development of Citrosuco's supply chain; and (vii) the increase in Acerbrag's investments and competitiveness in Argentina. These moves, which are in line with the business strategy of each of the portfolio companies, helped make them stronger. The pages dedicated to the individual companies will provide additional information about their markets, operational and financial performances, initiatives during the year, and advances related to their ESG agendas. More detailed information about each of the individual companies can be found in the annual reports available on their respective websites. 39 =#41MSA 151 ןןן Votorantim Cimentos A commitment to overcome. Votorantim#42Net revenue: R$22.3B Votorantim Cimentos Adjusted EBITDA: R$5.2B Leadership in the transition to a low carbon economy in the Brazilian civil construction sector. Visit the Votorantim Cimentos website In 2021, Votorantim Cimentos reaffirmed its financial discipline, took important steps with regard to its ESG agenda, demonstrated the power of its operating leverage, executed important strategic moves, and confirmed the resilience of its geographically diversified portfolio. In addition, it conducted initiatives that increased its financial strength by reducing its leverage and lengthening its debt. As a result of the company's good financial health, Moody's raised its rating from Baal to Baa3, placing Votorantim Cimentos in a select group of Brazilian companies with an investment grade rating by the three main credit rating agencies. The company ended the year with net revenue of R$22.3 billion and adjusted EBITDA of R$5.2 billion, a 33% and 37% increase, respectively, compared with 2020. The Brazilian cement market had a positive year that yielded good results, with an increase in sales volumes and prices that partially mitigated the impact of the increase in energy and raw material costs. In North America, the market remained strong, with growth similar to 2020. The approval of the infrastructure incentive package by the US government will create a positive outlook for the cement market in the coming years. In Europe, Asia, and Africa, the construction market also grew. However, like in Brazil, the results were impacted by an increase in energy and raw material costs. Despite that, the company had positive results when compared with 2020. In South America, market dynamics were positive in Uruguay, where Votorantim Cimentos continues to have good results, and showed signs of recovery in Argentina and Bolivia. The company made strategic moves through acquisitions and investments, primarily in markets with strong currencies and good perspectives for growth and value creation. Votorantim Cimentos concluded the business combination with Caisse de dépôt et placement du Québec (CDPQ) in Canada, involving McInnis Cement. The new combined entity now has an installed cement production capacity of 7.8 million tonnes. In addition, the company carried out two other transactions that reinforced its position in North America: it increased its stake in the concrete company Superior Materials, taking control of the operation, which allowed it to expand its concrete business and its presence in the Great Lakes region; and it acquired an aggregates company, Valley View, in the United States. 41 =#43= In Spain, Votorantim Cimentos acquired Cementos Balboa, with an installed production capacity of 1.6 million tonnes of cement per year. This transaction strengthened the company's position in the Iberian region by increasing its total capacity to 4.6 million tonnes. In addition, Votorantim Cimentos announced the acquisition of HeidelbergCement in southern Spain, with an installed production capacity of 1.4 million tonnes of cement per year. The transaction is subject to customary closing conditions, including approval by Spanish regulatory authorities. In Brazil, Votorantim Cimentos completed the expansion of the Pecém plant in the state of Ceará. The new unit uses state-of-the-art technologies to ensure more sustainable production with less consumption of natural resources and a reduction in CO2 emissions. In 2021, Juntos Somos Mais, one of the portfolio companies of Votorantim Cimentos, received a R$100 million contribution from the shareholders to further explore the vast potential of digital solutions for the building materials sector. Juntos Somos Mais is a relationship company in the civil construction market that has more than 90,000 registered users, including retailers, construction workers, and companies. As part of its ESG agenda, Votorantim Cimentos is leading the transition to a low-carbon economy in the civil construction industry- it is the only national company to participate in the Global Cement and Concrete Association (GCCA) 2050 Cement and Concrete Industry Roadmap for Net Zero Concrete. It joined the United Nations (UN) Business Ambition for 1.50C and the Race to Zero campaigns, committing to align its CO2 emission reduction targets with the Science Based Targets initiative (SBTI). This decarbonization agenda is reflected in the company's governance, which includes working groups on decarbonization and ESG, made up of members of the Board of Directors. In 2021, in line with the company's diversity and inclusion strategy, three women became part of its governance bodies: Clarissa Lins was appointed to the Board of Directors as an independent member, Luciana Domagala joined the Compensation Committee, and Cristina Betts became part of the Finance Committee. In the social sphere, Votorantim Cimentos made investments to fight the pandemic. Additionally, it partnered with Habitat for Humanity, an organization that works in more than 70 countries to ensure that. people in vulnerable situations have decent housing conditions. 42 23#44Banco BV The best of two worlds: start-up mindset and profitability. levePrafrente nossos princípios: Correto III Simples Parceir Corajoso#45Net income: R$1.6B | 2000 ROE: 14.0% BV banco A financial institution that compensates for the CO2 emissions from financed vehicles in Brazil. Visit the banco BV website Banco BV made significant progress in several areas of its strategy. Its performance demonstrates its expertise and leadership in mature businesses, such as used light vehicle financing and wholesale, as well as in segments that contribute to the diversification of revenues and strengthen customer relationships, such as financing for solar energy and for small and medium companies. BV ended 2021 with record net income of R$1.6 billion and a 14% return on equity (ROE), compared with 10% in 2020. In the area of mature businesses, BV's 100% digital operations and quick automatic responses (under a minute) to 97% of its credit checks helped establish the bank as the market leader in used light vehicle financing for the ninth consecutive year. In insurance, BV maintained a prominent position as one of the largest brokers in the country, with more than R$1.1 billion in premiums. In wholesale, the bank advanced its diversification strategy with increased risk distribution. The Corporate segment- companies with annual revenues between R$300.0 million and R$1.5 billion-grew by 13.9% compared with 2020 and now represents 47% of the wholesale portfolio. In addition, debt issuance operations coordinated by BV totaled a record R$25.5 billion. As part of the new expansion strategies, solar panel financing a business in line with the sustainability commitments of BV-grew by 181.6%. Banco Digital reached 2 million customers, 53% of the bank's total customer base, through a successful launch strategy for the BV Account. The launch of a new card portfolio also contributed to the growth of this business line. Another highlight in the year was the expansion of the bank's portfolio in the small and medium company segment, strengthened by investments in fintechs such as Trademaster. BV also signed an important strategic partnership with S3 Bank, a banking-as-a- service (BaaS) platform that offers integrated financing and payment solutions in a modular, secure, and scalable manner. BVX, the innovation business unit, was created with the mission of generating value through connections with the start-up ecosystem, with a focus on co-creation, development, and investment in strategic partnerships on three fronts: Corporate Venture Capital (CVC) and strategic partnerships, BV Open, and BV Lab. On the first front, BVX maintains partnerships with 44 =#46approximately 30 innovative companies to enrich the ecosystem. In 2021, the bank expanded its participation in Portal Solar, establishing itself as one of the main financiers of solar panels in Brazil. BV Open plays an important role in BV's revenue diversification strategy by working as a distribution channel. At the end of 2021, 57 partners from several segments, such as education, energy, health, and e-commerce, were connected and using the services of the platform. As it continued to connect with the innovation ecosystem, BV formed a partnership, through BV Lab, with SignumWeb, a start-up that facilitates communication with people with hearing impairment through certified sign language interpreters. BV reinforced its commitment to the ESG agenda through the public document "2030 Commitments for a Lighter Future," which detailed three objectives: (i) neutralize environmental impact; (ii) accelerate social inclusion; and (iii) mobilize resources to promote sustainable business. BV's long-term targets are based on these objectives, which align with five of the United Nations (UN) Sustainable Development Goals (SDGs). BV announced the offsetting of CO2 emissions of its entire financed fleet-by 2021, more than 750,000 financed vehicles had joined the offset program. BV financed and distributed a total of R$6.2 billion to fund sustainable initiatives in retail and wholesale. In the social arena, BV developed the project Junto ao Meu Financiamento Solar (Together with my Solar Financing), in partnership with the nongovernmental organization Gerando Falcões, to supply solar energy to more than 240 homes in a community in São José do Rio Preto in the interior of the state of São Paulo. This will be the first favela in Latin America to have solar panels. In addition, as part of its culture, BV is committed to diversity and inclusion. The company sponsors programs such as Lugar de Mãe é no BV (Mothers Have a Place at BV), which focuses on hiring new mothers who are out of the job market. BV also believes that sports are an avenue for social inclusion. Last year, the company sponsored, for the first time, the biggest skate event in Latin America: Skate Total Urbe. It also supported 10 athlete and former athlete institutes that reached more than 1,500 children and young people through 2,000 in- person or virtual classes in 2021. BV also made progress in its engagement with stakeholders: it increased its level of transparency by publicizing its strategies, plans, and results to the market and took an important step in governance by forming a Sustainability Committee and including incentives to align the entire team with ESG principles. BV stands out for being the first bank to establish a framework of ESG targets linked to the variable compensation of its senior management. = 45#47CBA Aluminum solutions that transform lives. FARACA DE EMERGENCIA III#48Qcba Net revenue: R$8.4B 1.000 Adjusted EBITDA: R$1.7B First aluminum company in the Americas to receive ASI Certification in Performance Standards and Chain of Custody at the same time. Visit the CBA website This year, several regions in the world faced energy crises that significantly impacted the aluminum industry. Decreased production capacity in China resulted in lower supply and consequent changes in market dynamics. On the other hand, the search for lighter and more sustainable materials caused an increase in demand. This dynamic raised aluminum prices, offsetting the general increase in the price of energy, one of the main production inputs. As an energy self-sufficient, integrated company (operating in bauxite mining, production of primary and transformed aluminum, and recycling activities), CBA was able to mitigate the cost increases during the year. Aluminum prices on the London Metal Exchange ended the year at US$2,806.00 per tonne, with an annual average of US$2,480.00 per tonne. As a result, the company's net revenue was R$8.4 billion in 2021, a 56% increase compared with the previous year. Adjusted EBITDA was R$1.7 billion, 221% higher than in 2020. CBA's growth strategy, which includes increasing its energy efficiency and advancing its sustainability agenda, will require important investments in the coming years. To finance this strategy in a sustainable manner, the company held its IPO on B3 in July and entered the Novo Mercado segment, which includes corporations that are committed to the highest standards of corporate governance. The operation raised R$1.6 billion, of which R$700.0 million will be invested in organic growth and potential strategic acquisitions in the coming years. The fact that sustainability is at the core of CBA's strategy was a determining factor for the success of the IPO. CBA's 2030 ESG strategy is based on 10 priority topics: four environmental, two social, three in the area of governance, and one crosscutting topic that affects all business areas: ESG communication. The company has 15 programs planned, with objectives to be achieved by 2030, broken down into corporate ESG targets linked to the variable compensation of employees at all levels. With the goal of ensuring the supply of low-carbon aluminum and offering sustainable solutions, CBA also develops the communities where it operates and positively influences the entire aluminum value chain. 47 =#49In line with its strategy of expanding its participation in the recycling business, CBA invested to increase the scrap processing capacity at Metalex and acquired 80% of the shares of Alux, one of the main suppliers of secondary aluminum in Brazil. This acquisition will allow CBA to grow its share in this market segment in addition to increasing its recycled aluminum production capacity. The company advanced the CBA 4.0 program (which aims to incorporate digitalization into the organizational culture to optimize processes), launched its innovation manifesto, and hosted Innovation Week (which promoted this topic and invited all teams to innovate in their daily work). Power generation from renewable sources has always been part of CBA's self- sufficiency strategy. Its portfolio includes 15 company-owned and six leased hydroelectric plants with the capacity to supply 100% of the electricity consumed in the plants. Aiming to further improve the management of energy resources and reinforce its position as a self-producer of energy, CBA announced the creation of a specific business unit to manage energy assets starting in 2022. The company announced the acquisition of a stake in wind energy self-production assets, which are part of the Ventos do Piauí I and II Complexes, with 171.6 MW of installed capacity. Starting in 2023, the energy will be used by CBA's plants in the towns of Itapissuma and Alumínio. The total investment planned by the company for the diversification of its energy matrix through renewable energy projects is R$190 million. To improve its ESG practices, CBA submitted its greenhouse gas emission reduction targets to the Science Based Targets initiative (SBTI), which encourages companies to set science-based climate targets and became a supporter of the Task Force on Climate-Related Financial Disclosures (TCFD). In addition, it remained in the CDP's (Carbon Disclosure Project) Climate Change A list with a score of A-, and received an A in the MSCI ESG rating. Another achievement related to its sustainable performance was the expansion of the Aluminum Stewardship Initiative (ASI) international certification of the company Metalex, a subsidiary of CBA, in the Performance standard, and of the Itapissuma unit, in the Chain of Custody standard. ASI is a non-profit organization that recommends global sustainability practices for the aluminum industry. CBA's goal is to have 100% of the aluminum units certified by 2030. To contribute to its value chain, the company kicked off the Sustainable Procurement program, a formal process that seeks not only to raise awareness of suppliers and customers on sustainability, but also to build the entire procurement process around ESG criteria, including the selection, approval, contracting, and development of business partners. In addition, the company made progress with regard to its diversity targets. It created affinity groups that meet monthly to identify opportunities and facilitate dialogue with minorities. It also expanded the training program for women in the industry and trained 253 women during the year. These activities are conducted by the Diversity Committee, which also advocated for the hiring of women, who represent 14.3% of the workforce (3% more than in 2020). = 48#50Votorantim Energia Energy for tomorrow, always.#51Net revenue: R$4.0B VOTORANTIM energia Adjusted EBITDA: R$8.0M Review of the materiality matrix with the participation of more than 600 stakeholders. Visit the Votorantim Energia website In 2021, Votorantim Energia took important steps in its growth strategy and remained positioned as one of the largest electricity companies in Brazil, operating in three segments: generation, commercialization, and energy management services. In generation, the joint venture with CPP Investments controlled 21 wind farms and CESP, which operates two hydroelectric plants, totaling 2.2 GW of installed capacity. Additionally, 10 wind farms under construction in Northeast Brazil, with an investment of approximately R$2 billion, will add 409.0 MW of installed capacity. In commercialization, the company remained among the three main Brazilian energy traders according to data from the Chamber of Electric Energy Commercialization (CCEE, for its initials in Portuguese), with more than 450 end consumer units, a 10% increase compared with 2020. In energy services, Votorantim Energia operated hydroelectric plants and wind farms of Votorantim portfolio companies in the South, Midwest, and Northeast regions of Brazil, totaling 763.2 MW in installed capacity. In generation, the diversification of the joint venture's renewable energy sources, which includes hydroelectric plants and wind farms, mitigated the effects of the biggest water crisis of the last 91 years in Brazil and resulted in net revenue of R$2.6 billion and adjusted EBITDA of R$1.0 billion (including CESP and the Ventos do Piauí I and Ventos do Araripe III wind farms). In commercialization and energy services, the results of the joint venture (calculated by equity method) included consolidated net revenue of R$4 billion, an 12% growth over the previous year, and adjusted EBITDA of R$8 billion, representing a 81% reduction compared with 2020. One of the highlights of the year was the approval by the Brazilian Electricity Regulatory Agency (ANEEL, for its initials in Portuguese) of the first hybrid wind-solar complex project in Brazil to be developed by the joint venture within the Ventos do Piauí I wind farm. The project is scheduled to start operating in 2023, with initial capacity to generate 68.7 MW. The energy produced by the solar project will complement the production of the wind project-wind generation is higher at night due to wind patterns in the region. Hybrid production is part of the strategy to increase renewable energy generation, thereby contributing to the energy transition required to ensure a greener economy. 50 =#52In line with its strategy of diversifying energy sources, the joint venture concluded the acquisition of the Jaíba V solar project. With commercial operations scheduled to start in 2023, this is one of the largest photovoltaic projects for the generation of clean energy in the country, with an installed capacity of 635 MWP. Located in the town of Jaíba, in the state of Minas Gerais, the project will produce enough clean energy to supply more than 500,000 homes and will help Brazil reach the goal of having 23% of its energy from non-hydro renewable sources by 2030. The electricity sector is evolving at an accelerated pace and Votorantim Energia is following that trend; in November the company signed an investment agreement with Way2, a technology company specializing in telemetering and energy management. Votorantim Energia took an important step in its growth strategy by signing an agreement with CPP Investments to consolidate its energy assets to create one of the largest renewable energy platforms in Brazil. This transaction created the Auren Energia, a company with an installed capacity of 3.3 GW, 71% hydro and 29% wind power. In addition to the assets in operation, the new company comes with a pipeline of 2.0 GW of renewable energy projects at different stages of development, which will enable significant organic growth and contribute to the diversification of energy generation sources. The company will also be positioned as a leader in the electricity sale segment and have a strong financial position, with estimated net revenue of R$5.8 billion. Votorantim Energia's ESG agenda in organized around 10 priority topics: (i) carbon management; (ii) ecosystem services; (iii) social legacy; (iv) relationship with communities; (v) employee health and safety; (vi) diversity and inclusion; (vii) supply chain management; (viii) management of subsidiaries, affiliates, and consortiums; (ix) integrated risk management; and (x) management of decision-making processes and flows. These topics guide the definition of targets to ensure high ESG standards in units and businesses. Since 2020, the company has had ESG targets linked to the variable compensation of its senior management. During the year, Votorantim Energia revised its materiality matrix. The process involved more than 600 stakeholders, including employees, customers, suppliers, and others. In addition, the company prepared its first Communication on Progress (COP) report for the United Nations (UN) Global Compact, in which it shared management practices related to the Sustainable Development Goals (SDGs). In 2021, Votorantim Energia became a member of the CDP (Carbon Disclosure Project) Benchmark Club and responded to its climate change questionnaire for the first time. In the social arena, the company implemented the local supplier development program in communities where it operates and increased the number of women and Black employees hired by 19% and 140%, respectively, compared with 2019. Continuing their successful partnership, Votorantim and CPP Investments will create an investment company focused on energy transition to invest in early-stage energy projects, including new solutions and technologies aimed at the decarbonization of the energy matrix. = 51#53Nexa Building the future of mining. III#54nexa Net revenue: US$ 2.6B Adjusted EBITDA: US$704.2M ESG targets linked to the variable compensation of senior management. Visit the Nexa website The low supply of metallic commodities globally and the increase in demand during the year increased the price of zinc and copper, Nexa's main products, contributing to the company's positive results. The price of zinc rose 28% over the previous year, reaching its highest level in the last 14 years. On the other hand, the industry was also affected by rising input prices and logistical constraints. Despite that, Nexa achieved a record adjusted EBITDA of US$704 million and net revenue of US$2.6 billion in 2021, 75% and 34% higher, respectively, than 2020. Higher prices and volumes, as well as the initiatives of the Jeito Nexa (Nexa Way) program, contributed to the positive results in the year, despite the operational challenges related to lower mineral supply and the increase in input prices. Jeito Nexa, the company's program to transform the organizational culture, promotes initiatives to improve efficiency in all areas of the operation. In 2021, it is estimated that Jeito Nexa had a positive impact on adjusted EBITDA of US$209 million, exceeding initial expectations. Another important project in year was Aripuanã, an underground polymetallic mine in the state of Mato Grosso that will start operating in the third quarter of 2022. Aripuana is one of the largest zinc projects being implemented in the world, with an investment of approximately US$625 million and production estimated at around 120,000 tonnes of zinc equivalent per year. This investment aims to increase the integration between the company's existing mines and smelters. Aripuanã is considered one of the most sustainable mining projects in Brazil; highlighting the dry disposal of tailings and high eficiency in water reuse in the production process. As part of Nexa's sustainability agenda, one important step was the creation of ESG targets linked to the variable compensation of company executives. In the social arena, Nexa continued to support the communities where it operates in their fight against COVID-19. During the year, social investments totaled more than US$7 million to implement initiatives aligned with the company's strategic social axes: economic development, support for public management, and initiatives for children and young adults. 53 =#55In addition, the company focused the efforts of its innovation program, the Mining Lab, on ESG solutions to economic, environmental, and social challenges. In 2021, the program continued to be carried out 100% remotely and launched eight challenges in three areas: (i) productivity and safety; (ii) use of zinc; and (iii) transformational decarbonization. The Mining Lab is a global program open to applicants from 23 countries. Of the 149 applications received during the year, four were selected for proofs of concept in 2022: Carbon Upcycling Technologies from Canada (with a solution to transformational decarbonization challenges in mining and metallurgy), Eye Gauge from France and Eugenie from the United States (with solutions to the challenge of increasing the use and availability of mobile equipment), and Nextcam Social, from Brazil (which focuses on monitoring activities and mapping behavior deviations). As part of its environmental efforts, in addition to reducing greenhouse gas emissions to contribute to a low-carbon economy, Nexa remains committed to reducing the volume of waste and transforming it into secondary products to reduce the use of tailing dams. In Peru, a pilot project was carried out to transform waste from the El Porvenir mining unit into cement. It was approved by the National Council of Science, Technology, and Technological Innovation (CONCYTEC, for its initials in Spanish) to receive an incentive through a law in support of research projects. Currently, 70% of the tailings from Nexa's mining process are dry piled or returned to the mines, and only 30% are deposited in dams. In the area of diversity, Nexa launched the Talentos Plurais (Plural Talents) program to hire and train people with disabilities who have graduated or will graduate by 2022. The company was also certified by Women on Board, an independent initiative that recognizes and encourages the inclusion of women in boards of directors or consultative bodies. In November, the company appointed a new CEO, Ignacio Rosado, who has extensive experience in the metals and mining industry. = 54#56citrosuto Citrosuco Nourishing life, living a legacy.#57citrosuco Net revenue: US$1.0B | alal Adjusted EBITDA: US$124.0M Creation of an ESG Committee. In the 2020/2021 crop year (July 2020 to June 2021), world consumption of orange juice remained stable, with an upward trend in some markets due to the recognition of its health benefits during yet another year of pandemic. In Brazil, harvesting in the citrus belt was 21.6% lower, according to the Citriculture Defense Fund (FUNDECITRUS, for its initials in Portuguese), as a result of unfavorable weather conditions caused by drought. In this environment, Citrosuco, which uses the US dollar as its functional currency and is one of the world's largest producers of orange juice, posted net revenue of US$1 billion and EBITDA of US$124 million, a 5.7% and 82.0% increase, respectively. Citrosuco continued to execute its business strategy, with a focus on the long term, to innovate its product portfolio while investing to increase productivity and efficiency, develop markets, and anticipate the trends and needs of the global food market. During the year, the company solidified its new purpose, "Nourishing life, living a legacy," applying it to all business relationships. Citrosuco updated its internal technology platform through the expansion of internet infrastructure for the farms, process automation, and agricultural production data performance, increasing its internal fruit production. The company's migration to digital citrus farming benefits the planet-one of the highlights was the increased efficiency in the use of natural resources. Regarding the product portfolio, in addition to orange juice, the company continued to invest in the development of natural ingredients, following a worldwide trend of using natural raw materials in different industries, such as cosmetics and health, among others. Citrosuco continued its sustainability journey through the consolidation of its sustainable business strategy and the definition of its commitments for 2030. Six material topics, with specific objectives, were prioritized: water, value chain, biodiversity, carbon, diversity, and social management. Visit the Citrosuco website 56 =#58As part of the climate agenda, Citrosuco maintains its commitment to reducing greenhouse gas emissions through an energy matrix that includes 60% renewable energy, according to 2020 data, primarily biomass and wind power, the latter in partnership with Votorantim Energia. In addition, the company improved its CDP (Carbon Disclosure Project) rating to B, which places it above the global average of the food and beverage segment. Citrosuco invested more than R$2 million in positive intervention projects in the areas of education, public health, and citizenship in partnerships with local communities, governments, social organizations, and others. The company made progress in the area of diversity, equality, and inclusion by forming affinity groups with the goal of identifying opportunities to promote an increasingly diverse work environment. Citrosuco also revamped its early career programs, such as the Semear (Sowing) internship program-in 2021, 34% of the approved candidates were Black. Also, as part of its business strategy, Citrosuco leads and supports the value chain of orange producers and suppliers. The Trilhar (Making a Path) program, an initiative that guides social and environmental practices in partnership with the supply chain, was intensified despite the challenges presented by the pandemic. Through the program, Citrosuco started to assess the properties of its partners and to work with them to plan the necessary improvements for responsible production. The company also increased its volume of sustainable supply, as attested by its SAI Platform certification, with approximately 70% of its production certified as sustainable. This important achievement confirms the public commitment Citrosuco made as part of the Sustainable Juice Covenant (SJC), the largest global initiative in the value chain to ensure that 100% of fruit supply is certified by 2030. To strengthen the management of its 2030 strategy and commitments, Citrosuco created an ESG Committee, made up of managers representing the company's entire value chain who are responsible for fostering the necessary transformations to meet its commitments by engaging customers, suppliers, local communities, and employees. As part of the execution of this strategy, the company also linked the variable compensation of the entire Executive Board and eligible leaders to ESG targets to accelerate the generation of shared value for the company and society. Citrosuco's results and initiatives are aligned with its purpose of "Nourishing life, living a legacy" and reflect its readiness to address the increasingly strict demands of the global food market in line with the evolution of social and environmental practices. 57 =#59Acerbrag Structuring dreams.#60AcerBrag Net revenue: R$2.1B | 2000 Adjusted EBITDA: R$595.0M Social development through education. Visit the Acrebrag website In 2021, the Argentine government increased restrictions on the flow of foreign exchange since its foreign exchange reserves reached the lowest levels since 2020. In addition, the country was severely impacted by the pandemic, which increased the challenges of the industrial sector. Despite that, like in the rest of the world, the increased demand for civil construction materials benefited the long steel industry. Despite the scenario of 50.9% inflation and currency devaluation of 23.2%, Acerbrag had the best performance in its history: net revenue of R$2.1 billion and adjusted EBITDA of R$595 million, a 79% and 63% increase, respectively, compared with 2020. The good performance was the result of (i) management focus on operational stability and cost control, with a record production volume of 324,000 tonnes in 2021; (ii) higher demand for long steel in the country, driven primarily by continuous activity in the civil construction segment; and (iii) investments in plant modernization totaling R$9.5 million. With support from the Votorantim Institute, Acerbrag continued to implement its social development plan, focused primarily on education and support for technical schools. The company carried out training sessions for high school seniors in the town of Bragado and extended the program to technical schools in neighboring towns. In addition, through the Ler Foundation, it supported elementary school children and the Model UN program to train young leaders. As part of its governance structure, Acerbrag has a Steel Committee, made up of the company's CEO, two executives, and one member of the Votorantim Board of Directors. Long Steel In 2021, Votorantim announced the sale of its stake in Acerías Paz del Río, the leader in long steel production in Colombia, to a group of Colombian investors. This transaction is part of Votorantim's investment and portfolio diversification strategy. In Votorantim's 2021 consolidated results, Acerías Paz del Río was listed as available for sale. In addition to Acerbrag, Votorantim holds a 15% stake in ArcelorMittal Brasil's long steel operations. 59 =#61About this Report 102-45102-46 | 102-48 | 102-49 [102-50 | 102-51 | 102-52 | 102-53 | 102-54 For the 11th consecutive year, Votorantim is publishing its Annual Report in line with its commitment to transparency to stakeholders. Covering the year 2021, this document addresses the strategic management, initiatives, and results of the holding company and, where specified, of the portfolio companies. This report has been prepared in accordance with the GRI Standards: Core option, as well as respecting the guidelines of the International Integrated Reporting Council (IIRC), besides correlating its content to the Sustainable Development Development Goals (SDGs) of the United Nations (UN). The reported economic and financial results are consolidated and have been externally audited by PricewaterhouseCoopers. The information on operational, social, and environmental performance also includes Reservas Votorantim, the Votorantim Institute, Altre, and the portfolio companies Votorantim Cimentos, banco BV, CBA, Votorantim Energia, Nexa, Citrosuco (crop year July 2020 to June 2021), and Acerbrag. No changes to scope and boundaries were made in relation to the previous report published in April 2021, in addition to those detailed in the Portfolio Overview section of the report. Reformulations of information from previous reports, when necessary, were described and justified throughout this report. This document is presented in online and PDF versions and includes consolidated financial statements, basis of preparation, and a GRI Content Index. Both versions can be found at www. relatorioanual2021.votorantim. com.br/en/. Questions and comments about this report can be directed to [email protected]. Click here to send your comments, questions, or suggestions 60 =#62GRI Disclosures General Disclosures Information about employees and other workers GRI 102-8 Other Brazil countries Total Own employees Monthly Hourly Total 23,332 7,555 3,794 27,126 30,887 339 4,133 7,894 35,020 Interns and apprentices Interns and summer students Apprentices Total Total of direct employees 581 310 891 471 125 596 1,052 435 1,487 31,939 4,568 36,507 Service providers Permanent activities Total service providers 3,219 3,219 5,891 5,891 9,110 9,110 Grand total 35,158 10,459 45,617 61 =#63Economic Disclosures Direct economic value generated and distributed GRI 201-1 Value added breakdown (R$/million) 2019 2020 2021 Value added breakdown (R$/million) 2019 2020 2021 Direct economic value generated Distribution of value added Revenues Personnel and payroll charges 4,500 4,838 5,261 Sales of products and services 35,271 Other operating income (expense), net 6,721 41,773 595 56,586 Direct compensation 2,787 3,007 3,373 Benefits 647 709 1,151 46 Estimated loss on doubtful accounts Total Revenues (17) 41,975 (31) 42,337 68 Social charges 1,066 1,122 737 Taxes and contributions 56,700 6,254 6,416 10,388 Federal 3,200 2,909 4,645 Inputs acquired from third parties State 2,332 2,798 4,089 Cost of goods sold and services provided Materials, energy, third party services and others Impairment of assets Gross value added (21,029) (25,596) (31,948) Municipal 17 18 23 Depreciation, amortization and depletion (930) (821) (714) (2,777) 19,302 13,143 (3,067) (3,293) (887) Deferred taxes 705 691 1,631 559 Third-party capital remuneration 3,223 4,633 8,067 24,424 (3,637) Finance costs and foreign exchange losses 2,884 4,288 7,689 Rentals 339 345 378 Net value added generated by the Company Own capital remuneration 4,925 (3,065) 7,120 16,235 9,850 20,787 Dividends (1,692) (1,005) (2,712) Value added received through transfers Non-controlling interest (245) (1,429) 720 Equity in the results of investees 919 727 585 Reinvested profits (offset losses) 6,918 (632) 8,877 Finance income and foreign exchange losses Loss on discontinued operations (56) 1 235 1,748 2,245 9,464 Value added distributed 18,902 12,822 30,836 Total value added received through transfers 2,667 Total value added to distribute 18,902 2,972 10,049 12,822 30,836 62 =#64Confirmed incidents of corruption and actions taken GRI 205-3 Employees dismissed or disciplined Termination or non-renewal of contracts 2019 0 2020 2021 Environmental Disclosures Energy consumption within the organization (GJ) GRI 302-1 1 0 2019 2020 2021 with suppliers Involvement in investigations and/ Total energy consumption from non-renewable sources 123,214,876 118,886,077 113,330,757.48 or legal process for involvement in corruption cases 0 о Total energy consumption from renewable sources 28,849,828 34,097,044 24,869,676.18 Total number of confirmed incidents of corruption 1 Total energy consumption at the company 182,625,386 187,939,854 193,966,517.38 Lawsuits brought on by unfair competition, trust and monopoly practices GRI 206-1 Nexa Citrosuco Votorantim Energia Votorantim Cimentos Long Steel CBA banco BV Reservas Votorantim Vototantim S.A. Energy intensity (GJ/t) GRI 302-3 2019 2020 2021 Company Main products 2019 2020 0 0 45 35 OOO 00000 OOOO 0 0 0 0 0 0 0 Nexa Metallic Zinc 2021 25.600 0 Zinc equivalent 16.120 30.54 0 Votorantim Cement 2.650 2.505 3.584 37 Cimentos Aggregates 0.020 0.030 0.062 0 Concrete 0.140 0.140 0.026 0 Mortar 0.040 0.018 0.144 Limes and agricultural inputs 0.020 0.010 0.816 CBA Cast aluminum production 109.630 Production of processed aluminum 78.000 Beneficial bauxite 0.072 15.930 0.140 Aluminum oxide 8.860 Liquid aluminum 83.690 88.630 55.970 Acerbrag Bars 2.777 2.954 4.570 Wires 0.260 0.018 6.600 Wire rod 1.306 1.976 5.820 Mesh 0.301 0.024 6.460 Citrosuco Total Production 8.609 8.055 63 =#65Water withdrawal by source (m³) GRI 303-3 Total water use by source (m³) 2019 Habitats protected or restored GRI 304-3 Areas where the success of restoration measures was approved by independent external professionals, or that comply with external standards/protocols 2020 2021 Surface water (rivers, lakes, wetlands, oceans) 68,160,068.1 Ground water 66,713,345.4 72,941,506.5 130,239,651.6 168,638,722.6 105,817,843.9 Biome Amazon Total area (km²) 39.0 Caatinga 8.7 Rainwater collected directly and stored by the company Savanna 4,588,048.2 Reused water 5,629,124.2 7,202,917.1 3,796,835.5 149,922,649.0 (Cerrado) 430.4 Atlantic Forest 545.2 Waste water from another organization Tropical wetland Water utilities 0 926,865.2 0 0 (Pantanal) 1.7 740,171.8 622,064.9 Pampa 2.4 Total 203,914,633.1 245,518,199.6 336,506,981.4 Other 0.0 Total 1,027.4 39.0 8.7 429.1 509.5 1.7 2.4 0.0 990.4 Total water discharge (m³) GRI 303-4 Total water discharge 2019 2020 2021 Total discharged volume 190,241,652.8 201,855,720.4 167,107,632.0 Total area by company (km²) Long steel 2019 0.1 2020 2021 0.1 Citrosuco 175.3 189.8 190.7 Nexa 16.7 20.0 37.1 Reservas Votorantim 310.0 630.0 310.0 CBA 624.0 36.1 329.4 Votorantim Cimentos 113.6 158.2 107.0 Votorantim Energia 55.9 54.6 53.1 Total 1,295.6 1,088.8 1,027.4 64 =#66Direct (Scope 1) GHG emissions (tCO2eq) GRI 305-1 2020 Gases included in Company Long steel the calculation 2019 Gases included in Non Biogenic the calculation Emissions Biogenic emissions Gases included in Non Biogenic the calculation Emissions 2021 Biogenic emissions CO2-CH4-N20- CO2-CH4-N20- HFCS-SF6 1,186,269.1 HFCS-SF6 1,236,234.2 0.0 Acerbrag CO2-CH4-N20 38,427.6 0.0 Citrosuco CO2-CH4-N20- CO2-CH4-N20 528,522.6 HFCS-SF6 406,714.2 833,687.0 Nexa CO2-CH4-N20- CO2-CH4-N20 251,460.3 HFCs 252,649.1 168,360.9 CO2-CH4-N20 CO2-CH4-N20- HFCS-SF6-NF3 329,998.0 521,732.0 264,733.5 150,081.0 Votorantim Cimentos CBA CO2-CH4-N20 19,215,648.0 CO2-CH4-N20- HFCS-PFCS-SF6 1,259,208.4 CO2-CH4-N20 CO2-CH4-N20- HFCS-PFCS-SF6 20,692,288.4 1,322,730.7 1,063,942.1 2,267.9 CO2-CH4-N20 25,097,870.0 1,524,961.2 CO2-CH4-N20- HFCS-SF6 1,158,573.4 Votorantim Energia CO2-CH4-N20 124,094.0 CO2-CH4-N20-HFC 202,043.7 66.1 CO2-CH4-N20-SF6 Reservas CO2 Total 22,565,202.4 16,028.4 23,869,900.0 2,327,112.5 0.0 CO2 2,719.1 3,607.8 146.3 16,028.4 0.0 26,909,238.8 2,199,639.6 Energy indirect (Scope 2) GHG emissions (tCO2eq) GRI 305-2 Company Gases included in the calculation Non Biogenic Emissions 2020 Biogenic 2021 emissions Gases included in the calculation Non Biogenic Emissions Biogenic emissions Long steel CO2-CH4 150,089.45 0.00 Acerbrag Citrosuco CO2-CH4-N20 29,167.00 0.00 CO2-CH4 CO2-CH4-N20 Nexa Votorantim Cimentos CO2 CO2 CBA CO2-CH4-N20-HFCS-PFCs-SF6 Votorantim Energia CO2 434,465.94 537,363.68 72,495.83 57.96 0.00 0.00 CO2 CO2 266,229.44 CO2-CH4-N20-HFCS-PFCs-SF6 0.00 CO2 Total 1,223,639.86 266,229.44 135,365.41 25,914.00 7,780.93 780,075.88 6,988.66 58.96 956,183.8 0.00 0.00 0.00 0.00 369,538.75 0.00 369,538.75 65 =#67Other indirect (Scope 3) GHG emissions (tCO2eq) GRI 305-3 Company Nexa Votorantim Cimentos CBA Votorantim Energia Citrosuco Total 2020 2021 Gases included in the calculation Non Biogenic Emissions Biogenic emissions Gases included in the calculation CO2-CH4-N20 CO2-CH4-N20 86,276.2 249,060.7 CO2-CH4-N20-HFCS-PFCs-SF6 22,232.3 CO2-CH4-N20 CO2-CH4-N20 487.3 117,937.0 475,993.5 5,136.4 30,661.0 2,602.5 61.1 0.0 CO2 Non Biogenic Emissions 58,483.1 Biogenic emissions 0.0 CO2-CH4-N20 5,158,605.2 CO2-CH4-N20-HFCS-PFCS-SF6 2,200,354.09 0.0 11,466.01 CO2-CH4-N20 CO2-CH4-N20 38,461.0 654.2 349,579.0 7,767,675.7 70.5 0.0 11,536.5 NOTE: ► The total scope 3 emissions reported by Nexa for this report are preliminary. Final figures will be available in their individual report. Intensity of greenhouse gas emissions (GEE) - (tCO2eq/t) GRI 305-4 Company Main Product 2019 2020 2021 Company Main Product 2019 2020 2021 Votorantim Cement 0.591 0.576 0.597 CBA Aluminum 3.740 3.080 2.840 Cimentos Aggregates 0.001 0.002 0.002 Processed bauxite 5.140 4.670 4.150 Concrete 0.009 0.011 0.009 Molten aluminum 2.555 2.660 2.560 Mortar 0.003 0.002 0.002 Benefited Bauxite 0.010 Limes 0.076 0.088 0.089 Aluminum oxide 0.200 Nexa Zinc equivalent 1.470 1.320 Metallic zinc and alloys sold 1.525 Acerbrag Bars 0.870 0.729 0.702 Wires 12.558 16.317 Wire rod Construction mesh 8.000 1.525 9.240 12.310 8.732 Contours 30.021 Nails 103.080 Cut and fold service 75.398 66 =#68Waste by type and disposal method (t) GRI 306-3 Percentage of new suppliers that were screened using Non-hazardous waste 2019 2020 2021 environmental criteria GRI 308-1 New suppliers that were screened Composting 39,581.6 53,099.5 Reuse 47,859.0 Recycling 219,559.7 73,299.0 229,608.2 62,300.6 71,355.5 using environmental criteria 2019 2020 2021 Total number of new suppliers 5,527 6,206 6,209 150,669.1 Recovery, including energy Total number of new suppliers screened using environmental criteria 823 1,623 1,704 recovery Incineration (mass burn) 4,473.3 816.3 Landfill 17,778.3 6,488.2 1,086.2 91,287.0 Deep well injection On-site storage Other Total 1,585.0 52,487.6 614,972.0 26,046.1 1,439,600.3 616,957.1 1,412,524.4 1,823,741.1 1,686,797.3 1,755,327.6 6,338.0 8,640.4 17,420.0 33.5 Percentage of new suppliers screened 14.9% 26.2% 27.4% Negative environmental impacts in the supply chain and actions taken GRI 308-2 Suppliers that were screened using environmental criteria 2019 Total number of suppliers 23,312 2020 2021 38,422 44,713 Hazardous waste 2019 Composting Reuse 2,995.9 Recycling 3,436.0 2020 0.6 4,364.5 1,780.7 2021 Total number of suppliers assessed for environmental impacts 557 5,446 11,065 0.0 6,569.3 2,620.2 Percentage of suppliers assessed for environmental impacts 2.4% 14.2% 24.7% Recovery, including energy recovery 360.8 2,280.6 1,068.9 Incineration (mass burn) 771.1 Landfill 6,353.4 On-site storage Other Total 1,711.9 15,917.2 31,546.30 728.6 8,072.2 411.1 22,228.9 39,867.0 2,421.3 12,532.7 573.4 6,606.2 32,391.9 67 40 =#69Social Disclosures New employee hires and employee turnover GRI 401-1 Occupational health and safety GRI 403-9 Own employees 2019 Contractors Gender Age Range Occupational health and safety Abroad Brazil Abroad Brazil 2019 Men Women Under 30 years old 30-50 Over 50 years old years Hours/men worked 18,520,875 64,448,150 old Number of injuries 68 112 New hires 4,015 1,787 2,815 2,768 219 Number of fatalities Termination of Number of lost days 1 2,531 0 228 1 0 employment 4,505 1,569 1,998 3,237 839 Percentage of new hires 11.9% 5.3% 8.3% 8.2% 0.6% Turnover 13.3% 4.6% 5.9% 9.6% 2.5% Gender Age Range Under 30 2020 Men Women years old 30-50 years old Over 50 years Occupational health and safety Hours/men worked Number of injuries Own employees Abroad Brazil 2020 Contractors Abroad Brazil 18,063,365 68,436,974 23,569,658 33,033,822 26 old Number of fatalities Number of lost days 0 53 1 25 41 2,531 1,831 о 5,298 6 1,104 New hires 3,925 1,544 2,546 2,773 243 Number of accidents Termination of with serious employment 4,844 1,678 2,025 3,427 1,070 consequences 12 23 16 17 Percentage of new Number of hires 11.4% 4.5% 7.4% 8.1% 0.7% mandatory reporting Turnover 14.1% 4.9% 5.9% 9.9% occupational 3.1% accidents 275 228 102 220 2021 Contractors Gender Age Range Own employees Under 30 30-50 Over 50 2021 Men Women years old years old years old New hires 4,449 1,924 2,564 3,580 229 Termination of employment 4,448 1,501 1,965 3,243 740 Percentage of new Occupational health and safety Hours/men worked Number of injuries Number of fatalities Number of lost days Abroad 15,074,958 Brazil Abroad Brazil 72,449,083 24,644,588 47,895,249 34 0 713 139 0 1,318 74 О 1,357 89 0 859 hires 12.7% 5.5% 7.3% 10.2% 0.7% Number of accidents Turnover 12.7% 4.3% 5.6% 9.3% 2.1% with serious consequences 7 40 40 18 20 Number of mandatory reporting occupational accidents 62 451 111 131 68 =#70Average hours of training per year per employee GRI 404-1 Diversity of governance bodies GRI 405-1 Company's minority groups 2019 2020 2021 Employees over 50 years old 5,295 6,461 5,318 Employee category Gender 2019 2020 2021 Women 6,318 9,034 8,279 Senior management Women 0.0 0.0 0.0 Men 4.0 0.0 0.0 Governance members - gender 2019 2020 2021 Middle management Women 9.7 0.0 3.4 Men 104 97 100 Men 13.3 2.5 6.9 Women 19 11 12 Coordinator/Adviser Women 8.1 4.4 3.5 Men 13.5 3.9 11.9 Governance members - age 2019 2020 2021 Technicians/Analysts/ Women 6.7 3.8 3.8 Under 30 years old 0 0 0 Supervisors Men 6.8 2.5 6.3 30 and 50 years old 57 55 56 Trainee Women 0.0 0.0 84.5 Over 50 years old 56 53 56 Men 0.0 0.0 27.3 Operational Women 0.0 0.0 0.0 Board members - gender 2019 2020 2021 Men 0.0 0.0 0.0 Men 48 36 Interns Women 0.0 0.0 9.5 Women 9 6 Men 0.0 0.0 0.6 Apprentices Women 0.0 0.0 1.6 Board members - age 2019 2020 2021 Men 0.0 2.5 6.9 Under 30 years old 0 0 30 and 50 years old 19 11 Over 50 years old 38 31 69 =#71Diversity of Employees in each category Employees in each category GRI 405-1 Incidents of discrimination 2019 2020 2021 Confirmed cases 79 17 40 unfounded cases 63 Men % Women % cases under review 18 Age Group % 30 to 50 Position Senior -30 years years +50 years Operations and suppliers at significant risk for incidents of child labor GRI 408-1 management 0.0 50.0 50.0 89.3 10.7 banco BV, CBA, Citrosuco, Nexa, Middle Reservas Votorantim, Acerbrag, management 0.7 82.8 16.5 77.8 23.7 Votorantim Energia and Votorantim S.A. 2019 2020 2021 Coordinators/ Advisers 11.6 79.7 8.7 67.1 32.1 Operations and suppliers considered to Technicians/ Analysts/ have significant risk for incidents of child labor and/or young workers exposed to hazardous work 0 1 Supervisors 21.1 69.2 9.7 64.0 36.1 Trainee 0.0 0.0 0.0 0.0 0.0 Operational 20.0 61.6 18.4 87.6 12.3 Interns 96.1 3.9 0.0 36.6 63.4 Operations and suppliers at significant risk for incidents of forced or compulsory labor GRI 409-1 Apprentices 99.8 0.2 0.0 36.1 63.9 CBA, Citrosuco, Nexa, Reservas Votorantim, Acerbrag, Votorantim Total 22.0 63.5 14.6 77.3 22.7 Energia and Votorantim S.A. 2019 2020 2021 Incidents of discrimination and corrective actions taken Number of operations and suppliers at risk of occurrence of forced or compulsory labor 0 0 1 GRI 406-1 Discrimination cases 2019 2020 2021 banco BV 2021 Ethnicity 7 2 Gender 1 2 Number of operations with significant risk for incidents of forced or compulsory labor 159 Religion 2 1 Number of suppliers with significant risk for incidents of forced or compulsory labor 26 Political opinion 1 0 Nationality 4 0 Harassment and abuse of power 44 11 38 Other incidents (race, age and nationality) 0 0 5 Other cases (discrimination and retaliation) 112 9 74 Total number of discrimination cases 156 35 122 70 =#72Operations that have been subject to human rights reviews or impact assessments GRI 412-1 New suppliers that were screened using social criteria GRI 414-1 CBA, Citrosuco, Nexa, Reservas Votorantim, Acerbrag, Votorantim Energia and Votorantim S.A. 2019 2020 2021 Total number of operations (Brazil and abroad) Total number of new suppliers Labor practices 2019 2020 2021 5,527 6,206 6,209 404 Operations subject to reviews 64 458 60 126 65 New suppliers screened using criteria relative to labor practices 2,342 2,436 3,057 Percentage of operations subject to reviews Percentage of new suppliers screened 42.4% 39.3% 49.2% 15.8% 13.1% 51.6% Impacts on society banco BV 2019 2020 2021 New suppliers screened using criteria relative to impacts on society 814 1,261 3,057 Total number of operations (Brazil and abroad) Percentage of new suppliers screened 14.7% 20.3% 49.2% 1,420 1,368 1,560 Human rights Operations subject to reviews 458 494 424 New suppliers screened using human rights criteria 1,974 1,733 3,057 Percentage of operations subject to reviews 32.3% 36.1% 27.2% Percentage of new suppliers screened 35.7% 27.9% 49.2% Negative social impacts in the supply chain and action taken Operations with local community engagement, impact assessments and development programs GRI 413-1 GRI 414-2 2019 2020 2021 Total number of operations Total number of suppliers Labor practices 2019 2020 2021 23,312 38,422 44,713 (Brazil and abroad) 433 Operations with community engagement 201 441 204 453 246 Percentage of operations with local Suppliers assessed for labor practices Percentage of suppliers assessed Impacts on society 12,028 51.6% 5,805 12,216 15.1% 27.3% community engagement 46.4% 46.3% 54.3% Suppliers assessed for impacts on society 1,586 Percentage of suppliers assessed 6.8% 917 2.4% 12,185 27.3% Human rights Suppliers assessed for human rights issues 10,440 Percentage of suppliers assessed 44.8% 6,003 12,104 15.6% 27.1% 71 =#73GRI Content Index GRI 102-55 GRI Standards GRI 102: Foundation 2016 Disclosure GRI 102: General disclosures 2016 Organizational profile 102-1 Name of the organization 102-2 Activities, brands, products, and services 102-3 Location of headquarters 102-4 Location of operations 102-5 Ownership and legal form 102-6 Markets served 102-7 Scale of the organization 102-8 Information on employees and other workers 102-9 Supply chain Page and/or link Votorantim S.A.; The Investment Holding Company, p.10 The Investment Holding Company, p.10 The Investment Holding Company, p.10 Portfolio Overview, p. 8; The Investment Holding Company, p.10 Portfolio Overview, p.8; The Investment Holding Company, p.10; Center of Excellence (CoE), p. 31 This report reports information pertinent to markets served by Votorantim S.A.. Information on sectors served and types of customers and beneficiaries of each investee company and their specificities are available in the individual reports of each company. The Investment Holding Company, p. 9; 2020 Results, p. 32; Consolidated Financial Statements, p. 102 Portfolio Overview, p. 8; The Investment Holding Company, p. 9 The Investment Holding Company, p. 9; Strategy and Management, p. 12; Risk Management, p. 24; Center of Excellence (CoE), p. 31 72 Assurance Yes =#74GRI Standards Disclosure Page and/or link 102-10 Significant changes to the organization A Message From the Board of Directors, p. 2; and its supply chain A Message From the Executive Board, p. 4; 2020 Highlights, p. 7; 102-11 Precautionary Principle or approach 102-12 External initiatives 102-13 Membership of associations Risk Management, p. 24 During the period covered by this report, there were no significant changes in the share capital structure of Votorantim S.A., as well as no significant changes in the selection and exclusion processes for suppliers in the chain. Information on the significant changes in each investee is available in the individual reports. Risk Management, p. 24 ESG engagement, p. 14 Amcham: João Schmidt (Chairman) serves as a Director Global Compact: Mariana Mayumi Oyakawa (General Manager of Investor Relations) is a member of the Advisory Board. FIESP: David Canassa (Director of Votorantim Reserves) serves as a member of the Superior Council of Environment (Cosema). CGESP (Environmental Management Council of the State of São Paulo in Portuguese): David Canassa (Director of Reservas Votorantim) serves as a member of the Council. Strategy 102-14 Statement from senior decision-maker 102-15 Main impacts, risks, and opportunities Council of The Americas: Chairman's International Advisory Council (CIAC). A Message From the Board of Directors, p. 2; A Message From the Executive Board, p. 4 The Investment Holding Company, p. 9 Strategy and Management, p. 12 Materiality, p. 15 73 = Assurance Yes Yes Yes#75GRI Standards Disclosure = Page and/or link Assurance Ethics and integrity of behavior 102-16 Values, principles, standards, and norms Values, p. 10 102-17 Mechanisms for advice and concerns about ethics Governance 102-18 Governance structure 102-19 Delegating authority 102-20 Executive-level responsibility for economic, environmental, and social topics 102-21 Consulting stakeholders on economic, environmental, and social topics 102-22 Composition of the highest governance body and its committees 102-23 Chair of the highest governance body 102-24 Nominating and selecting the highest governance body 102-25 Conflicts of interest 102-26 Role of highest governance body in setting purpose, values, and strategy 102-27 Collective knowledge of highest governance body 102-29 Identifying and managing economic, environmental, and social impacts 102-30 Effectiveness of risk management processes 102-31 Review of economic, environmental, and social topics 102-32 Highest governance body's role in sustainability reporting Compliance, p. 23; ESG engagement, p. 15; Governance Structure, p. 21 Governance Structure, p. 21 Governance Structure, p. 21 Materiality, p. 15 Board of Directors, p. 23; Executive Board, p. 23 Board of Directors, p. 23; Executive Board, p. 23 The term of office of the Chairman of the Board of Directors runs until the General Meeting that resolves on the financial instructions for the fiscal year ended on 12/31/2022. Governance Structure, p. 21 Compliance, p. 23 ESG engagement, p. 14; Governance Structure, p. 21 ESG engagement, p. 14; Governance Structure, p. 21 ESG engagement, p. 14; Governance Structure, p. 21 Risk Management, p. 24 Governance Structure, p. 21 ESG engagement, p. 14; Governance Structure, p. 21 74 Yes Yes Yes Yes Yes#76GRI Standards Disclosure Stakeholder engagement 102-40 List of stakeholder groups Page and/or link Materiality, p. 15 •Executives of Votorantim S.A. ⚫Professionals in the sustainability and governance areas of the portfolio companies. • Finance and sustainability experts. • Academic experts. 102-41 Collective bargaining agreements 102-42 Basis for identifying and selecting stakeholders with whom to engage 102-43 Approach to stakeholder engagement = Assurance Yes • Investors in national and international markets. All Votorantim employees are covered by collective bargaining agreements. Of these, 44% are subject to collective adjustments. Materiality, p. 15 Yes The review of material topics, conducted in 2018 by an external consultancy, came from the audiences with which Votorantim S.A. relates and which make demands related to ESG themes. Materiality, p. 15 Yes The review of material topics, conducted in 2018 by an external consultancy, was carried out through in-depth interviews with selected stakeholders. 102-44 Key topics and concerns raised through About this Report, p. 15 stakeholder engagement Material topics are presented in an aggregated form, according to the commitment assumed with stakeholders at the time of consultation. Reporting practice 102-45 Entities included in the consolidated financial statements 102-46 Defining report content and topic boundaries About this Report, p. 60 Materiality, p. 15; About this Report, p. 60 The themes were structured in two dimensions, due to the diversity of Votorantim's portfolio: 1) Transversal to the holding and its investees; and 2) Specific, according to the nature of each business. 75 Yes Yes Yes#77GRI Standards Disclosure 102-47 List of material topics 102-48 Restatements of information 102-49 Changes in the list of material topics and topic boundaries 102-50 Reporting period 102-51 Date of most recent previous report 102-52 Reporting cycle 102-53 Contact point for questions regarding the report 102-54 Claims of reporting in accordance with the GRI Standards 102-55 GRI content index 102-56 External assurance Page and/or link Materiality e ODS na Votorantim, p. 16 About this Report, p. 72 For indicator 401-1, an improvement was identified in the form of consolidation, with the total number of employees as the denominator for calculating the turnover rate. Historical data has been adjusted in the indicator book. Citrosuco considered as presence in countries, those in which it has operational control of the inserted plant(s). About this Report, p. 60 About this Report, p. 60 About this Report, p. 60 2020, published march 2021 About this Report, p. 60 About this Report, p. 60 About this Report, p. 60 GRI Disclosures, p. 71 About this Report, p. 60 The entire contents of this document are verified externally by PwC. This practice is requested by the company's leaders and is one of the annual goals of those responsible for developing the Report. External and independent verification keeps Votorantim S.A. updated with the best accountability practices in the market. 76 Assurance Yes Yes Yes Yes =#78GRI Standards Material topics GRI 200 Standards Economic Series Economic Performance GRI 103: Management approach 2016 GRI 201: Economic performance 2016 Anti-corruption GRI 103: Management approach 2016 GRI 205: Anti-corruption 2016 Anti-competitive behavior GRI 103: Management approach 2016 GRI 206: Anti-competitive behavior 2016 Disclosure 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach 201-1 Direct economic value generated and distributed 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach 205-2 Comunicação e treinamento sobre políticas e procedimentos anticorrupção 205-3 Confirmed incidents of corruption and actions taken 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach 206-1 Legal actions for anti-competitive behavior, antitrust, and monopoly practices Page and/or link Economic and Financial Performance, p. 25 Economic and Financial Performance, p. 25 Economic and Financial Performance, p. 25 Economic Disclosures, p. 62 Governance, Compliance and Risks, p. 20 Governance, Compliance and Risks, p. 20 Governance, Compliance and Risks, p. 20 Governance, Compliance and Risks, p. 20 Economic Disclosures, p. 63 Governance, Compliance and Risks, p. 20 Governance, Compliance and Risks, p. 20 Governance, Compliance and Risks, p. 20 Economic Disclosures, p. 63 77 Omission Part Global omitted Reason Explanation Compact Assurance Sim Sim Sim Sim P. 10 Sim Sim Sim Sim Sim#79GRI Standards Disclosure GRI 300 Standards Environmental series Energy GRI 103: Management approach 2016 GRI 302: Energy 2016 Water GRI 103: Management approach 2016 GRI 303: Water 2018 Biodiversity GRI 103: Management approach 2016 GRI 304: Biodiversity 2016 Emissions GRI 103: Management approach 2016 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach 302-1 Energy consumption within the organization 302-3 Energy intensity 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach 303-3 Water withdrawal by source 303-4 Water discharge 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach 304-3 Habitats protected or restored 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach Page and/or link The report consolidates the consumption and energy intensity of each invested company. For more detailed information, see the annual and sustainability reports for each investee. Environmental Disclosures, p. 63 Environmental Disclosures, p. 63 Reservas Votorantim, p. 34 The indicator reported in the Book of Indicators consolidates the withdrawal of water by source of the investees. For more detailed information, consult the annual and sustainability reports of each company. Environmental Disclosures, p. 64 Environmental Disclosures, p. 64 Reservas Votorantim, p. 34 The indicator reported in the Book of Indicators consolidates the total area protected or restored. For more detailed information, consult the annual and sustainability reports of each company Environmental Disclosures, p. 64 Reservas Votorantim, p. 34 The indicator reported in the GRI Disclosures consolidates the investees's GHG emissions by scope. For more detailed information, see the annual and sustainability reports for each company. 78 Omission Part Global omitted Reason Explanation Compact Assurance Sim Sim Sim Sim P. 7, P.8, P.9 Yes Yes Yes Yes Yes Yes Yes Yes P.7, P.8, P.9 Yes Yes Yes Yes#80GRI Standards GRI 305: Emissions 2016 Waste GRI 103: Management approach 2016 GRI 306: Waste and effluents 2018 Supplier environmental assessment GRI 103: Management approach 2016 GRI 308: Supplier Environmental Assesment 2016 Disclosure 305-1 Direct (Scope 1) GHG emissions 305-2 Energy indirect (Scope 2) GHG emissions 305-3 Other indirect (Scope 3) GHG emissions 305-4 GHG emissions intensity 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach 306-3 Waste by type and disposal method 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach 308-1 New suppliers that were screened using environmental criteria 308-2 Negative environmental impacts in the supply chain and actions taken Page and/or link Environmental Disclosures, p. 65 Environmental Disclosures, p. 65 Environmental Disclosures, p. 66 Environmental Disclosures, p. 66 The report consolidates the water discharge and waste disposal of each invested company. For more detailed information, see the annual and sustainability reports for each investee Environmental Disclosures, p. 67 The report consolidates data of suppliers that were screened using environmental criteria of each invested company. For more detailed information, see the annual and sustainability reports for each investee Environmental Disclosures, p. 67 Environmental Disclosures, p. 67 GRI 400 Standards Série Social Employment GRI 103: Management approach 2016 GRI 401: Employment 2016 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach 401-1 New employee hires and employee turnover People, p. 17 The report consolidates new employee hires and turnover of each invested company. For more detailed information, see the annual and sustainability reports for each company invested. Social Disclosures, p. 68 79 Omission Part Global omitted Reason Explanation Compact Assurance Yes Yes Yes P.7, P.8, P.9. Yes Yes Yes Yes Yes Yes Yes P.7, P.8, P.9 Yes P.7, P.8, P.9 Yes P.3, P.6#81GRI Standards Occupational health and safety GRI 103: Management approach 2016 Disclosure 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach GRI 403: Occupational health and 403-9 Types of injury and rates of injury, safety 2016 occupational diseases, lost days, and absenteeism, and number of work-related fatalities Page and/or link The report consolidates rates of injury, occupational diseases, Ist days, and absenteeism and fatalities of each invested company. For more detailed information, see the annual and sustainability reports for each investee. Social Disclosures, p. 68 Training and Education Omission Part Global omitted Reason Explanation Compact Assurance Yes Yes Yes P.3, P.6 Yes GRI 103: Management approach 2016 103-1 Explanation of the material topic and its boundary People, p. 17 103-2 The management approach and its components People, p. 17 103-3 Evaluation of the management approach People, p. 17 404-1 verage hours of training per year per employee Social Disclosures, p. 69 P.3, P.6 GRI 404: Training and education 2016 Diversity and equal opportunity GRI 103: Management approach 2016 GRI 405: Diversity and equal opportunity 2016 Non-discrimination GRI 103: Management approach 2016 GRI 406: Non-discrimination 2016 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach 405-1 Diversity of governance bodies and employees 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach 406-1 Incidents of discrimination and corrective actions taken People, p. 17 People, p. 17 People, p. 17 Social Disclosures, p. 70 The report consolidates incidents of discrimination of each invested company. For more detailed information, see the annual and sustainability reports for each investee. Social Disclosures, p. 70 80 P.3, P.6 P.1, P.2, P.6#82GRI Standards Child labor GRI 103: Management approach 2016 GRI 408: Child labor 2016 Disclosure 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach 408-1 Operations and suppliers at significant risk for incidents of child labor Page and/or link The report consolidates significant risk for incidents of child labor of each invested company. For more detailed information, see the annual and sustainability reports for each investee. Social Disclosures, p. 70 Forced or compulsory labor GRI 103: Management approach 2016 GRI 409: Forced or compulsory labor 2016 Human rights assessment GRI 103: Management approach 2016 GRI 412: Human rights assessment 2016 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach 412-1 Operations that have been subject to human rights reviews or impact assessments The report consolidates significant risk for incidents of forced or compulsory labor of each invested company. For more detailed information, see the annual and sustainability reports for each investee. Social Disclosures, p. 70 The report consolidates human rights reviews of each invested company. For more detailed information, see the annual and sustainability reports for each investee Social Disclosures, p. 70 81 Omission Part Global omitted Reason Explanation Compact Assurance Yes Yes Yes P.1, P.2, P.5 Yes Yes Yes Yes P.1, P.2, P.4 Yes Yes Yes Yes P.1, P.2 Yes#83Omission Part GRI Standards Local communities Disclosure Page and/or link Global omitted Reason Explanation Compact Assurance GRI 103: Management approach 2016 103-1 Explanation of the material topic and its boundary Social Investment, p. 28 103-2 The management approach and its components Social Investment, p. 28 103-3 Evaluation of the management approach GRI 413: Local communities 2016 413-1 Operations with local community engagement, impact assessments, and development programs Social Investment, p. 28 Social Disclosures, p. 71 Yes Yes Yes P.1, P.2, P.4 Yes Supplier social assessment GRI 103: Management approach 2016 GRI 414: Supplier social assessment 2016 Public policy GRI 103: Management approach 2016 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach 414-1 New suppliers that were screened using social criteria 414-2 Negative social impacts in the supply chain and actions taken 103-1 Explanation of the material topic and its boundary The report consolidates data of suppliers that were screened using social criteria of each invested company. For more detailed information, see the annual and sustainability reports for each investee Social Disclosures, p. 71 Social Disclosures, p. 71 103-2 The management approach and its components Governance, Compliance and Risks, p. 20 Governance, Compliance and Risks, p. 20 Governance, Compliance and Risks, p. 20 GRI 415: Public policy 2016 103-3 Evaluation of the management approach 415-1 Political contributions In line with the guidelines of our code of conduct, which prohibits financial contributions to political parties, there were no such donations in the year 2021. 82 22 Yes Yes P.1, P.2, P.3 P.1, P.2, P.3 Yes Yes ཚེ ཚེ། ཚེ Yes P. 10#84Basis of Preparation 1. Introduction This document is the basis of preparation for the 2021 Annual Report of Votorantim S.A. (Votorantim). It serves to specify the boundaries and parameters defined during the preparation of the Report, as well as to ensure that it complies with the necessary criteria for information assurance. Votorantim is a Brazilian family- owned company, with a long- term investment horizon. Its portfolio companies are present in 15 countries, operating in the building materials, finance, aluminum, clean and renewable energy, metals and mining, orange juice, long steel, real estate and infrastructure sectors. Limited assurance is provided by PwC; its scope will be a selection of GRI Standards to be listed in the Limited Assurance Report prepared by the independent auditors. To ensure the commitment to transparency and accountability to all stakeholders, the Annual Report for the year 2021 complies with the GRI Standards - Core Option and its content is correlated with the Sustainable Development Goals (SDGs) of the United Nations (UN). 2. Organizational boundaries and exceptions in the scope of the Report The 2021 Annual Report follows the boundaries of Votorantim's operations. It addresses the strategic management, initiatives and results of the holding company and, where specified, of the businesses conducted in the portfolio companies, in a complementary way. The operational, social and environmental performance, especially in the standards annex, consolidates information from Reservas Votorantim, the Votorantim Institute and the portfolio companies Votorantim Cimentos, banco BV, CBA, Votorantim Energia (including the joint venture with CPP Investments), Nexa, Citrosuco (crop year July 2020 to June 2021) and Acerbrag. The Report does not include Acerías Paz del Rio, which was includes in previous reports, due to Votorantim's divestment in the company. Due to the differences and particular characteristics of the businesses, the consolidation of data may have limitations, which will be described throughout this Basis of Preparation. Specific and detailed information about each portfolio company is available in their individual reports. 3. Accounting information, currencies and conversions The accounting information published in the 2021 Annual Report was compared by the reporting organization with the information available in the consolidated financial statements for the same period, which was also audited by an independent third party, PwC. The company's functional and reporting currency is the Brazilian Real. For the purposes of the financial results included in the Annual Report, foreign currencies used by different operations were converted into reais. The financial results of portfolio companies with a functional currency that differs from the reporting currency are presented in their functional currency. 4. Reporting systems The collection of information for the production of the Report included interviews with Votorantim leaders and access to documents and materials produced throughout the year. The standards annex includes consolidated information on Votorantim and the portfolio companies. Quantitative data is managed by the operational areas through information technology systems and records based on manual controls. To identify and consolidate them according to the same standard, indicator collection forms are used and systematically reviewed = 83#85to incorporate improvements from previous cycles. This is a continuous process that aligns with Votorantim's interest in ensuring the best possible quality in reporting. The collection forms include the information necessary to report all standards, common instructions and the reporting parameters adopted. The criteria and exceptions are described in this Basis of Preparation, in the chapter Detailing the reporting criteria. 5. Detailing the reporting criteria The table below aims to detail the criteria and parameters adopted for the measurement and consolidation of information regarding the GRI Standards, on which this Report is based, and should be used to complement Votorantim's 2021 Annual Report, not only with regards to the main document, but also regarding the GRI Indicators Annex. The table includes the following fields, as described below: ▸ Standard: GRI standard, referenced by their official code ▸ Description of the standard: Description of the standard following the GRI Standards specification ► Reporting criteria and parameters: Detailed information provided as follows: ► Boundary: Scope of the standard, which can be specified as "Votorantim (investing holding company)" or "Consolidated (Votorantim and portfolio companies)", for standards that consolidate data from the holding company and the portfolio companies. ►Details: Description of reporting criteria and parameters for standards with boundaries specified as "Votorantim (investment holding company)". "Details general" and "Details per portfolio company": For cases of boundaries specified as "Consolidated (Votorantim and portfolio companies)", in which the details apply to all portfolio companies at the time of data collection and consolidation ("Details - general") or address specific situations of each company ("Details per portfolio company"). ▸ Exceptions: Exceptions with regard to the boundaries and reporting period. ▸ Changes: Changes in boundaries and criteria in relation to the previous report. ▸ Justification: Justifications for the changes in boundaries and criteria in relation to the previous report. 84 =#86Standards - 100 Series Standard Description Reporting criteria and parameters 102-1 Name of the organization Boundary: Votorantim (investment holding company) Details: Organization's corporate name and trade name. Exceptions None Changes None Justification N/A 102-7 Scale of the organization None None N/A 102-8 Information on employees and other workers Boundary: Votorantim (investment holding company) Details: It considers Votorantim's financial results, as an investment holding company, including its net sales and total capitalization. Information on net revenue and adjusted EBITDA of each company can be found in the chapter "Portfolio Companies" on pages 30 to 59 of the Report. Information such as capitalization, described as net equity, and on products and services offered are available in the individual reports of each company in the portfolio. The chapter "Portfolio Overview", on page 8, details the number of employees and units of each portfolio company. Boundary: Consolidated (Votorantim + portfolio companies) Details general: - The Report includes data from 12/31/2021 regarding permanent company employees, interns and apprentices, or contractors, according to the following criteria: 1. Monthly employees, hourly employees or trainees 2. Interns and apprentices 3. Contractors 4. Broken down by region, in Brazil and abroad The standard consolidates data from all portfolio companies, which have their own parameters and autonomy to manage their data. In some cases, this prevents the reporting of broken-down data as recommended by the GRI. All employees reported are company employees, except when specified as "contractors" or "indirect", and permanent. Details per portfolio company: ▸ Citrosuco: Following the consolidation and comparability guidelines of previous years, this report does not consolidate information on the 7,232 seasonal workers formally hired according to Brazilian labor laws (CLT) for the harvest period. The standard consolidates data from all portfolio companies, which have their own parameters and autonomy to manage their data. In some cases, this prevents the reporting of broken- down data. 85 None N/A =#87Standard 102-9 Description Supply chain 102-10 Significant changes to the organization and its supply chain Reporting criteria and parameters Boundary: Votorantim (investment holding company) Details: As detailed in Votorantim's 2021 Annual Report and the introduction section of this document, Votorantim has a simple structure, with office activities aimed at managing the investments of its shareholder family. For the purpose of reporting this standard, the following definitions were used: Supply chain: The sequence of activities or parties that supply products or provide services to the organization. • • Products: Article or substance offered for sale or that is part of a service provided by the organization. • Service: Action by an organization to satisfy a demand or need. For detailed information on the supply Chain of each portfolio company, consult their individual resources. Boundary: Votorantim (investment holding company) Details: 102-11 Precautionary principle or approach Significant changes are understood as those that, when omitted or distorted, may influence the readers' perception of the Report. They include changes in the investment portfolio, share capital and other activities related to capital formation, maintenance or alteration. Boundary: Votorantim (investment holding company) Details: = Exceptions None Changes None Justification N/A None None N/A None None N/A 102-15 Key impacts, risks and opportunities As an investment manager, Votorantim's precautionary principle is related to its risk appetite and market and financial risk policies, as well as the effectiveness of the risk management policies adopted by the portfolio companies and in relation to participation in their governance bodies. Boundary: Votorantim (investment holding company) Details: None None N/A The main impacts, risks and opportunities included in the Report are identified and prioritized by the executive board and its respective committees and governance bodies, which systematically and routinely monitor the strategic aspects of the holding company's business. 86#88Standard Description 102-22 Composition of the highest governance body and its committees Reporting criteria and parameters Boundary: Votorantim (investment holding company) Details: The Board of Directors is composed of at least six and at most seven members, elected and dismissed at any time by General Meeting. They will serve a three-year term and are allowed to be reelected. The Executive Board is composed of at least three and at most seven members, all without specific designation, resident in the country, shareholders or not, who can be elected and dismissed at any time by the Board of Directors. They will serve a one-year term and are allowed to be reelected. Boundary: Votorantim (investment holding company) Details: = Exceptions None Changes None Justification N/A 102-23 Chair of the highest governance body None None N/A Serves a three-year term; no alternated members are nominated. 102-25 Conflicts of interest Boundary: Votorantim (investment holding company) Details: None None N/A 102-30 Effectiveness of risk management processes According to Votorantim's Code of Ethics and Conduct: "Conflict of interest in the employee-company relationship occurs when an employee uses his/her influence or commits acts with the intention of benefiting personal interests." Boundary: Votorantim (investment holding company) Details: None None N/A Continuity plan for insurable risks for the holding company's processes and financial policy revised annually to highlight financial risks. 102-41 Collective bargaining agreements Boundary: Votorantim (investment holding company) Details: None None N/A This standard includes permanent employees covered by Brazilian labor laws (CLT). The standard consolidates information from Votorantim, Reservas Votorantim, Votorantim Institute and the Center of Excellence. Specific information on the portfolio companies is available in their individual reports. 87 40#89Standard Description 102-49 Changes in reporting 103-1 Explanation of the material topic and its boundaries Reporting criteria and parameters Boundary: Votorantim (investment holding company) Details: Significant changes in scope and boundaries in relation to previous reports are those that, when omitted or distorted, may influence the readers' perception of the Report, violating basic principles such as comparability. The Report aims to address how Votorantim manages the topics that are considered material and their respective impacts. Since the materiality includes both topics that are cross- cutting and inherent to Votorantim's activity and topics that are specific to one or more portfolio companies, the reporting of standard 103-1 will specify, in each situation, the scope of the impacts (Votorantim or the portfolio companies), as well as the level of involvement of Votorantim's management in each topic and, consequently, its impact. Standards - 200 Series Standard 201-1 205-2 Description Direct economic value generated and distributed Communication and training about anti-corruption policies and procedures Reporting criteria and parameters Boundary: Votorantim (investment holding company) Details: Covers Votorantim's financial results as an investment holding company. The model used follows the guidelines of CPC 09 and the International Accounting Standards Board (IASB). Boundary: Votorantim (investment holding company) Details: The Report includes awareness and training programs and campaigns promoted by Votorantim that have the portfolio companies as their target audience. Like the rest of the Report, the reporting of this standard reflects the base year 2021. The content and target audience of the programs are reported in a qualitative way. Despite being required, the percentages of employees and business partners reached are not reported due to different criteria used by the portfolio companies to classify and group these audiences. 88 = Exceptions None Changes None Justification N/A None None N/A Exceptions None Changes None Justification N/A None None N/A#90Standard 205-3 206-1 Description Confirmed incidents of Reporting criteria and parameters Boundary: Consolidated (Votorantim + portfolio companies) corruption and actions taken Details general: Legal actions for anti- competitive behavior, anti-trust and monopoly practices Corruption is the effect or act of corrupting someone, including government officials, or something, with the purpose of obtaining advantages in relation to others by means considered illegal or illicit. Corruption includes practices such as bribery, facilitation payments, fraud, including in public tenders, extortion, collusion and money laundering. "Confirmed incidents of corruption" are considered to be the sum of individual cases identified as valid. Details per portfolio company: Boundary: Consolidated (Votorantim + portfolio companies) Details general: For the purposes of this standard, the following definitions were used: ► Unfair competition: Initiatives aimed at limiting the effects of market competition, such as fixing prices, imposing geographic quotas, coordinating bids and others. ►Trust and monopoly: Unfair business practices, cartels and improper mergers that make competition difficult. Due to their differences in size and business segment, the criteria for forming the basis of lawsuits related to unfair competition and violations of antitrust laws used by each company may depend on their particular and specific definitions of materiality, validated by the appropriate governance bodies of each company, and to the proper reporting of probable, possible and unlikely losses. However, this standard aims to consolidate any and all involvement in lawsuits related to these issues. Details per portfolio company: Exceptions ►Data reported by banco BV includes only operations in Brazil. ► Data reported by Votorantim Cimentos includes only operations in Brazil. 89 = Changes None Justification N/A None N/A#91Standards - 300 Series Standard 302-1 Description Energy consumption within the organization Reporting criteria and parameters Boundary: Consolidated (Votorantim + portfolio companies) Details general: Data is presented in GJ for each type of energy source, as described below: ► Non-renewable energy sources: Those that cannot be replenished, reproduced, cultivated or generated in a short period of time through ecological cycles ► Renewable energy sources: Those that can be replenished in a short period of time through ecological cycles. Renewable energy sources include geothermal, wind, solar, hydro, biomass and others. "Within the organization" refers to the energy consumed in the units operationally controlled by the portfolio companies (amounts are reported in the chapter "Portfolio Overview" of Votorantim's 2021 Report. It includes offices, industrial plants and distribution centers To calculate this standard, each portfolio company must follow its own methodology, calculation rules and tools, and conversion rates used for this purpose. Such calculations may include, but are not limited to: energy balance of the plants and data reported by those responsible for the areas, most up to date GHG Protocol, and energy consumption as shown on electricity bills, among others. Details per portfolio company: ► Votorantim Cimentos: GNR methodology for the Cement business and GHG Protocol for the other businesses. The energy figures reported by Votorantim Cimentos cover all the company's operations, except for concrete, cement, mortar, aggregates (or other) operations in countries other than Brazil. ► Acerbrag: Conversion rates: Electricity (MWh)*3.6 = GJ • Gas (Nm3)*9300*4.1868/10^6= GJ ►CBA: For the plant, fuel consumption data was extracted from the GHG Protocol version 2021.0.1 calculation tool. For the other units, the same conversion rates as in previous years were used. CBA's reporting for the indicator does not include the following operational units: Barro Alto, Rondon, Distribution Center, and Central Office. ►Citrosuco: GHG Protocol standard. ►Nexa: GHG Protocol standard. Nexa's reporting for this indicator does not include the company's offices located in Luxembourg and the United States. ► Reservas: Internally controlled data; conversion rates extracted from ISACTEEP. ▸ Votorantim Energia: Energy converted from MWh to GJ, considering 1MWh = 3.6GJ. Exceptions ►Standard not reported by Votorantim. ►2021 information from Citrosuco is not available. The reported information refers to the period between January and December 2020. ►Nexa's reporting for this indicator does not include the offices located in Luxembourg and the United States. Changes Nexa's energy (GRI Standards 302-1 and 302-3) and greenhouse gas emissions (GRI Standards 305-1 and 305-4) indicators had their 2020 data corrected and restated in Votorantim's Annual Report 2021. Justification Due to the identification of an unintentional error in the compilation of fuel consumption data in one of the company's operational units. 90#92Standard 303-3 Description Water withdrawal 303-4 Water discharge Reporting criteria and parameters Boundary: Consolidated (Votorantim + portfolio companies) Details general: Includes the total volume of water withdrawn from any water source, including water withdrawn for cooling. The data is obtained through direct measurements, but can also be estimated or modeled, depending on the practices of each company. This standard may include water withdrawn directly by the organization or through intermediaries, such as water supply companies. Details per portfolio company: ▸ Citrosuco: The amount of reuse water reported by Citrosuco refers to water produced by the organization. Does not include data from operations abroad and the São Paulo office. Boundary: Consolidated (Votorantim + portfolio companies) Details general: This standard refers to the total volume of water discharge, calculated by the sum of water effluents discharged as groundwater, surface water and sewage that flows into rivers, oceans, lakes, swamps, treatment facilities and groundwater in the period covered by the Report, through: ► A specific discharge point (point source discharge). ► Land surfaces in a dispersed or indefinite manner (non-point source discharge). ►Wastewater taken from the organization by truck. Discharge of collected rainwater and domestic sewage is not considered water discharge. Details per portfolio company: ► Votorantim Cimentos: The data reported by Votorantim Cimentos is primarily based on estimates and includes all Cement operations. Units of the company's other businesses are not included. ▸ Citrosuco: Considers the parameter that all areas of protected or restored habitat reported are 50% in the Cerrado biome and 50% in the Atlantic Forest biome. Exceptions ►Standard not reported by Votorantim. ►The data reported by Votorantim Cimentos includes all Cement operations and the Concrete operations in Brazil and Uruguay. Units of the company's other businesses are not included. ►The figures reported by Citrosuco do not include the data from foreign operations and the São Paulo office. ►Nexa's reporting for the indicator does not include the following operational units: Aripuanã and offices (São Paulo, Belo Horizonte, Peru, Luxembourg and the United States). ►Standard not reported by Votorantim. The data reported by Citrosuco includes only operations in Brazil. ►Nexa's reporting for the indicator does not include the following operational units: Aripuanã and offices (São Paulo, Belo Horizonte, Peru, Luxembourg, and the United States). 91 Justification = Changes None N/A None N/A#93Changes Justification N/A Standard 304-3 Description Habitats protected or restored Reporting criteria and parameters Boundary: Consolidated (Votorantim + portfolio companies) Details general: This standard refers to areas where restoration has been completed or that are actively protected. Two important definitions are considered for this consolidation: ► Protected areas: A geographically defined area that is designated, regulated or managed to achieve specific conservation objectives. ► Restored areas: Areas used during or affected by operational activities, and where mitigation measures have been implemented to restore the environment to its original state or to a state where it forms a healthy and functioning ecosystem. The consolidation of this standard considers the total number of protected or restored areas, with emphasis on those that were identified with the participation of external experts or protocols. External experts include certifications or independent external evaluators who are qualified to participate in the identification. Furthermore, parameters and protocols are understood as clear guidelines of a classificatory nature, which follow criteria established by voluntary regulation, self-regulation or standards. Protected or restored habitats are located in Brazil (in the states of BA, CE, DF, GO, MG, MT, MS, PE, PA, PI, PR, RJ, RO, RS, SC, SP and TO). Details per portfolio company: ► CBA: The areas belonging to CBA in São Paulo and Goiás are managed and, therefore, were accounted for in the Report by Reservas Votorantim. Exceptions The data reported by Votorantim Cimentos includes only operations in Brazil. The data reported by Citrosuco includes only the operations in Brazil. ►Citrosuco considered the assumption that all reported areas of protected or restored habitat fall 50% within the Cerrado biome and 50% within the Atlantic Forest biome. None 92#94Standard 305-1 Description Direct (Scope 1) GHG emissions Reporting criteria and parameters Boundary: Consolidated (Votorantim + portfolio companies) Details general: Direct greenhouse gas emissions (Scope 1) from sources (units or processes that release GHGs into the atmosphere) owned or controlled by the organization. Direct greenhouse gas emissions (Scope 1) include, but are not limited to, CO2 emissions from fuel consumption reported in standard 302-1. To calculate this standard, each portfolio company must follow its own methodology, calculation rules and tools, and conversion rates used for this purpose. These calculations primarily follow the GHG Protocol methodology. Details per portfolio company: ► Votorantim Cimentos: Emissions from the Cement business were calculated following the GCCA guidelines for calculating the industry's CO2 emissions. Emissions from other businesses were calculated according to the GHG Protocol guidelines. ► Acerbrag: Follows the parameters of the Argentine Secretary of Energy. Exceptions ►Standard not reported by Votorantim and banco BV. 2021 information from Citrosuco is not available. The reported information refers to the period between January and December 2020. ►The emissions data reported by Votorantim Cimentos cover all the company's operations, except those of concrete, cement, mortar, aggregates (or other) in countries other than Brazil. ►CBA: Follows the parameters of the Brazilian GHG Protocol Program and uses the consolidation approach by CBA's reporting for this operational control. ►Citrosuco: Follows the GHG Protocol standards. ►Nexa: Follows the GHG Protocol standards. ► Reservas: Follows the GHG Protocol standards. ► Votorantim Energia: Uses the Climas platform, which follows the methodological guidelines of the GHG Protocol, with adjustments and specifications. indicator does not include the following operational units: Barro Alto, Rondon, Distribution Center, Head Office and Sorocaba Branch. Changes Nexa's energy (GRI Standards 302-1 and 302-3) and greenhouse gas emissions (GRI Standards 305-1 and 305-4) indicators had their 2020 data corrected and restated in Votorantim's Annual Report 2021. Justification Due to the identification of an unintentional error in the compilation of fuel consumption data in one of the company's operational units. 93#95Standard Description 305-2 Energy indirect (Scope 2) GHG emissions Reporting criteria and parameters Boundary: Consolidated (Votorantim + portfolio companies) Details general: Indirect greenhouse gas emissions (Scope 2) from company sources (units or processes that release GHG into the atmosphere), resulting from the generation of electricity, heat, cooling and steam imported and consumed by the organization. To calculate this standard, each portfolio company must follow its own methodology, calculation rules and tools, and conversion rates used for this purpose. These calculations primarily follow the GHG Protocol methodology. Details per portfolio company: ► Votorantim Cimentos: Emissions from the Cement business were calculated following the GCCA guidelines for calculating the industry's CO2 emissions. Emissions from other businesses were calculated according to the GHG Protocol guidelines. ► Acerbrag: Follows the parameters of the Argentine Secretary of Energy. ► CBA: Follows the parameters of the Brazilian GHG Protocol Program and uses the consolidation approach by operational control. ►Citrosuco: Follows the GHG Protocol standards. ►Nexa: Follows the GHG Protocol standards. ►Reservas: Follows the GHG Protocol standards. ► Votorantim Energia: Uses the Climas platform, which follows the methodological guidelines of the GHG Protocol, with adjustments and specifications. Exceptions ►Standard not reported by Votorantim, banco BV and Reservas Votorantim. ► 2021 information from Citrosuco is not available. The reported information refers to the period between January and December 2020. ►The amounts reported by Acerbrag refer to industrial units. ►The emissions data reported by Votorantim Cimentos cover all the company's operations, except those of concrete, cement, mortar, aggregates (or other) in countries other than Brazil. ►CBA's reporting for this indicator does not include the following operational units: Barro Alto, Rondon, Distribution Center, Head Office and Sorocaba Branch. ►Nexa's reporting for the indicator does not include the company's offices located in Luxembourg and in the United States. 94 Changes None Justification N/A#96Standard 305-3 306-3 Description Reporting criteria and parameters Details general: Other indirect (Scope 3) GHG Boundary: Consolidated (Votorantim + portfolio companies) emissions Waste generated, by composition and disposal method Indirect greenhouse gas emissions (Scope 2) that result from the organization's activities but are produced by sources that do not belong to or are not controlled by the company. To calculate this standard, each portfolio company must follow its own methodology, calculation rules and tools, and conversion rates used for this purpose. These calculations primarily follow the GHG Protocol methodology. Details per portfolio company: ► Votorantim Cimentos: Emissions from the Cement business were calculated following the GCCA guidelines for calculating the industry's CO2 emissions. Emissions from other businesses were calculated according to the GHG Protocol guidelines. ► Acerbrag: Follows the parameters of the Argentine Secretary of Energy. ► CBA: Follows the parameters of the Brazilian GHG Protocol Program and uses the consolidation approach by operational control. ►Citrosuco: Follows the GHG Protocol standards. ►Nexa: Follows the GHG Protocol standards. The total scope 3 emissions reported by Nexa for this report are preliminary. Final figures will be available in your individual report. ► Reservas: Follows the GHG Protocol standards. ► Votorantim Energia: Uses the Climas platform, which follows the methodological guidelines of the GHG Protocol, with adjustments and specifications. ► Acerbrag: The amounts reported include only data from industrial units. Boundary: Consolidated (Votorantim + portfolio companies) Details general: Standard reported in tonne of waste generated, broken down by type of waste, hazardous and non- hazardous, according to the National Solid Waste Policy, and disposal methods: composting, reuse, recycling, recovery (which includes energy recovery), incineration, landfill, underground injection, on-site storage or other methods indicated by the portfolio company at the time of data collection. The data is obtained through weighing, but can also be estimated, depending on the characteristics of each company. Details per portfolio company: ►banco BV: Reports only the amount of waste sent for recycling and generated by construction. Exceptions ►Standard not reported by Votorantim, banco BV, Reservas Votorantim and Acerbrag. ►2021 information from Citrosuco is not available. The reported information refers to the period between January and December 2020. ►Nexa's reporting for the indicator does not include the company's offices located in Luxembourg and the United States. ►The total scope 3 emissions reported by Nexa for this report are preliminary. The final figures will be available in your individual report. ►Standard not reported by Votorantim and Reservas Votorantim. ►The amounts reported by Acerbrag refer to industrial units. ► CBA's reporting for the indicator does not include the following operational units: Barro Alto, Rondon, Distribution Center and Central Office. ►Nexa's reporting for the indicator does not include the following operational units: São Paulo, Belo Horizonte, Peru, Luxembourg and United States offices. Changes None Justification N/A The historical data reported in the indicator by Votorantim Cimentos has been restated due to a revision in the consolidation method used in 2019 and 2020. N/A 95#97Standard 308-1 308-2 Description New suppliers that were screened using environmental criteria Negative environmental impacts in the supply chain and actions taken Reporting criteria and parameters Boundary: Consolidated (Votorantim + portfolio companies) Details general: The standard provides a relative assessment (in %) of new suppliers screened using environmental criteria (numerator) in relation to all new suppliers (denominator), according to the following definitions: ►New suppliers: First-time suppliers selected, approved and/or contracted during the period covered by the report. ► Environmental criteria: Assessments can be informed by audits, contractual reviews, documentation review at the time of approval, approval updates, involvement of both parties, and complaint and grievance mechanisms related to environmental aspects, including but not limited to, legal compliance, history of non-compliance, fines and sanctions and evaluation of policies and processes to mitigate environmental risks that may lead to operational, reputational, legal or financial damage to the supplier or the portfolio company itself. Given the variety of sectors and segments, it is up to each portfolio company to determine the relevant criteria for its procedures, according to its specific characteristics. Details per portfolio company: Boundary: Consolidated (Votorantim + portfolio companies) Details general: The standard provides a relative assessment (in %) of suppliers screened using environmental criteria (numerator) in relation to all active suppliers (denominator), according to the following definitions: ►Suppliers: Suppliers that are considered active by the company and were selected, approved and/or contracted before the period covered by the Report. ► Environmental criteria: Assessments can be informed by audits, contractual reviews, documentation review at the time of approval, approval updates, involvement of both parties, and complaint and grievance mechanisms related to environmental aspects, including but not limited to, legal compliance, history of non-compliance, fines and sanctions and evaluation of policies and processes to mitigate environmental risks that may lead to operational, reputational, legal or financial damage to the supplier or the portfolio company itself. Given the variety of sectors and segments, it is up to each portfolio company to determine the relevant criteria for its procedures, according to its specific characteristics. Details per portfolio company: Exceptions The data reported by Votorantim Cimentos includes only operations in Brazil. ►Nexa's reporting for the indicator does not include the company's offices located in Luxembourg and the United States. ►Nexa's reporting for the indicator does not include the company's offices located in Luxembourg and the United States. 96 Changes None Justification N/A None N/A#98Standards - 400 Series Standard 401-1 Description New employee hires and employee turnover Reporting criteria and parameters Boundary: Consolidated (Votorantim + portfolio companies) Details general: The aggregated information is reported by gender and age group, according to the following consolidation criteria: ► Rates are calculated based on the total number of employees at the end of the reporting period (12/31/2021). ►The total number of employees used in the turnover calculation does not include seasonal workers, interns and apprentices. ►The new hire rate is calculated by the total number of employees hired by gender and age group (numerator) in relation to the total number of employees at the end of the reporting period (denominator). ▸ Only employees hired under the Brazilian labor laws (CLT) are included. ►The turnover rate is calculated by the total number of employees dismissed by gender and age group (numerator) in relation to the total number of employees at the end of the reporting period (denominator). Details per portfolio company: 97 Exceptions None Changes None Justifications N/A#99Standard Description 403-9 Work-related injuries Reporting criteria and parameters Boundary: Consolidated (Votorantim + portfolio companies) Details general: This standard includes occupational health and safety data related to company employees, that is, those who have a direct relationship with the organization, according to the same parameters as standard 102-8. Data is broken down by region (Brazil and other countries), according to the following parameters: ►Man hours worked: Absolute number of man hours worked, considering the working hours per week, month or year defined in accordance with local laws and practices relating to working hours. ▸ Number of injuries: Consolidates only lost-time incidents. ➤Fatalities: Consolidates the absolute number of deaths in the period covered by the Report. ► Lost time: Refers to "calendar days" or "business days", depending on the classification used by each portfolio company. ► Contractors: Workers who are not employees but whose work and/or workplace is controlled by the organization. ►High-consequence work-related injuries: Work-related injuries that result in critical or irreversible consequences, such as multiple traumas, amputations, crushing, spinal fractures, spinal cord injuries and others. Each company may have specific rules for determining high-consequence injuries. ► Recordable work-related injuries: Follow the legal requirements of each area where the companies are located. Details per portfolio company: ► Acerbrag: The total number of contracted employees reported by Acerbrag includes fixed and mobile outsourced employees. Reported man hours worked is calculated based on estimates. For the number of injuries with serious consequence (except deaths), accidents classified from severity level 4 onwards, detailed in Acerbrag's internal procedures, were considered. For the number of reportable injuries, we considered work-related accidents of all severity levels described in the same procedures. ► Votorantim Cimentos: For the number of injuries with serious consequences (except deaths), we considered the most serious accidents that are described in the following classifications: amputation (total or partial) of a body member; temporary or permanent loss or reduction of vision; crushing injuries to internal organs; severe burns; scalping and any other injury resulting from working in an enclosed space that leads to hypothermia. For the number of reportable injuries, we considered level 1 to 6 accidents detailed in the company's internal procedures. ►Citrosuco: For the number of injuries with serious consequences (except fatalities), we considered level 3 and 4 accidents detailed in the internal procedures of Citrosuco. For the number of reportable injuries, the levels 1 to 4 described in the same procedures were considered. ►CBA: For the number of injuries with serious consequence (except deaths), Level 4 and 5 accidents were considered, as detailed in the internal procedures of CBA. For the number of reportable injuries, levels 2 and 3 described in the same procedures were considered. ►Nexa: Nexa considers as reportable injuries all work-related accidents recorded during the reporting period. For injuries with serious consequence, we considered level 4, 5 and 6 work accidents, detailed in the company's internal procedures. Exceptions ►The reporting of this standard by Votorantim Cimentos does not include Votorantim Cimentos' operations in Uruguay. 98 = Changes None Justifications N/A#100Standard 404-1 405-1 Description Reporting criteria and parameters Average hours of training per Boundary: Votorantim (investment holding company) year per employee Diversity of governance bodies and employees 406-1 Incidents of discrimination and corrective actions taken Details general: This standard measures the average hours of training per employee provided by the Votorantim Academy, as described in Votorantim's 2021 Annual Report. For this standard, data us broken down by gender (male and female) and functional categories (director/president, manager, coordinator/consultant, technician/analyst/supervisor, trainee, operational worker, intern and apprentice). The number of hours were calculated according to the number of hours employees of the holding company and the portfolio companies spent on modules of the Votorantim Academy. These modules are available, for example, in the form of distance learning courses such as recorded classes, interactive content, webinars and lectures. Boundary: Consolidated (Votorantim + portfolio companies) Details general: This standard reflects the diversity of employees and members of governance bodies in terms of gender and age group (percentage). The assessment included the following categories: director/president, manager, coordinator/consultant, technician/ analyst/supervisor, trainee, operational worker, intern, apprentice and others. The calculation of the total number of employees follows the same consolidation rule used for standard 102-8. Members of governance bodies are directors and presidents. Details per portfolio company: Boundary: Consolidated (Votorantim + portfolio companies) Details general: The following definitions were used for the consolidation of this standard: ► Discrimination: The act and result of treating a person unequally, imposing unequal burdens or denying them benefits, rather than treating each person fairly on the basis of individual merit. Discrimination may also include harassment, defined as a course of comments or actions that are unwelcome, or should reasonably be known to be unwelcome, to the person toward whom they are addressed. ► Confirmed cases: Each individual case of discrimination that has been found to be valid. The consolidated base is formed by the number of cases of discrimination received by the complaint channels available in each portfolio company, according to the following classifications: (i) race, (ii) color, (iii) age group, (iv) gender, (v) religion, (vi) political opinion, (vii) nationality, (viii) social origin, (ix) harassment and abuse of power and (x) other cases involving internal and/or external stakeholders in the operations. The reporting includes cases classified as "unfounded", "under analysis" or "confirmed" on 12/31/2021. Details per portfolio company: ► Votorantim Cimentos: One case is currently classified as "inconclusive" (that is, despite being confirmed, it was not possible to gather enough information to classify it as "valid" or "unfounded"). 99 Exceptions None = Changes None Justifications N/A None None N/A None None N/A#101= Changes None Justifications N/A Standard 408-1 409-1 Description Operations and suppliers at significant risk for incidents of child labor Operations and suppliers at significant risk for incidents of forced or compulsory labor Reporting criteria and parameters Boundary: Consolidated (Votorantim + portfolio companies) Details general: For the purpose of consolidating this standard, "at significant risk" refers to the real possibility of operations or suppliers being involved in incidents of child labor, whether due to a history of incidents in a particular sector or link in the chain, or due to the presence of operations or suppliers in regions with increased social vulnerability, for example. A "child" is any person under the age of 15 or under the age of completion of compulsory studying (whichever is higher), except in certain countries where the economy and education system are not sufficiently developed, in which cases a minimum age of 14 years might apply. A "young person" is any person under the age of 18 years, the age of majority in Brazil, which is established by Votorantim's internal policies as the minimum age for hiring. "Hazardous work" refers to activities and functions that pose a threat to the life or health of the employee, as determined by Brazilian labor laws. Details per portfolio company: Boundary: Consolidated (Votorantim + portfolio companies) Details general: For the purpose of consolidating this standard, "at significant risk" refers to the real possibility of operations or suppliers being involved in incidents of forced or compulsory labor, whether due to a history of incidents in a particular sector or link in the chain, or due to the presence of operations or suppliers in regions with increased social vulnerability, for example. "Forced or compulsory labor" is defined as all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily (ILO Convention 29 on Forced Labor), and also debt-induced labor or work in degrading condition (as established by the Brazilian Federal Constitution, article 5). Details per portfolio company: ►banco BV: Considers the number of new customers in 2021 screened for social and environmental risk. The bank reports the total number of customers screened in 2021 by the social and environmental risk area with activities in sectors at significant risk for incidents of compulsory labor. Exceptions ►Standard not reported by Votorantim Cimentos. Citrosuco's numbers reflect the evaluations carried out in the company's operations and suppliers only in Brazil. ►The data reported by banco BV includes only operations in Brazil. ►CBA's reporting for the indicator does not include the Metalex operating unit. ►Nexa's reporting for the indicator does not include the company's offices located in Luxembourg and the United States. ►Standard not reported by Votorantim Cimentos. ►The data reported by banco BV includes only operations in Brazil. ►Citrosuco's numbers reflect the evaluations carried out in the company's operations and suppliers only in Brazil. ►CBA's reporting for the indicator does not include the Metalex operating unit. ►Nexa's reporting for the indicator does not include the company's offices located in Luxembourg and the United States. None 100 N/A#102Standard 412-1 413-1 Description Operations that have been subject to human rights reviews or impact assessments Operations with local community engagement, impact assessments, and development programs Reporting criteria and parameters Boundary: Consolidated (Votorantim + portfolio companies) Details general: The consolidation of this standard includes all units in Votorantim's 2021 Annual Report, including offices, plants, distribution centers and others. "Human rights reviews" are formal or documented assessment process that applies a set of human rights performance criteria. Impact assessments related to human rights are necessary instruments to fulfill the responsibility of preventing, mitigating and repairing negative impacts of business on human rights and establishing the parameters and guidelines necessary for their effectiveness. Countries where the company operates are only counted once in cases where different portfolio companies operate in the same country. Details per portfolio company: ►banco BV: Considers the number of new customers in 2021 screened for social and environmental risk. The bank reports the total number of customers screened in 2021 by the social and environmental risk area with activities in sectors at significant risk for incidents of compulsory labor. Boundary: Consolidated (Votorantim + portfolio companies) Details general: The consolidation of this standard includes all units in Votorantim's 2021 Annual Report, including offices, plants, distribution centers and others. "Local development program" are those that detail actions to minimize, mitigate or compensate for adverse social and economic impacts, and/or to identify opportunities or actions to enhance positive impacts of a project on the community. Social impact assessment programs may relate to impact as part of participatory processes, environmental impact assessments and continuous monitoring, public communication of the results of environmental and social impact assessments, local development programs based on the needs of local communities, comprehensive processes of consultation to the local community including vulnerable groups, working committees and councils, occupational health and safety commissions and other worker representative bodies to discuss impacts, and formal processes to register complaints by local communities. Details per portfolio company: ► Votorantim Cimentos: The total number of operating units included in the reporting of the standard differs from the total number of operating units reported by Votorantim Cimentos for standard 102-7, considering the parameter of impact in the municipalities covered by community involvement, social impact assessment or local development programs. Exceptions ►Standard not reported by Votorantim Cimentos, Reservas Votorantim and Votorantim. ►The data reported by banco BV includes only operations in Brazil. ►Standard not reported by banco BV and Votorantim. ► Votorantim Cimentos considers, for the reporting of the indicator, the operational units in the territories of Latin America, VCEAA (Spain, Morocco, Tunisia and Turkey) and VCNA (United States and Canada). 101 = Changes None Justifications N/A None N/A#103Standard 414-1 414-2 Description New suppliers that were screened using social criteria Negative social impacts in the supply chain and actions taken Reporting criteria and parameters Boundary: Consolidated (Votorantim + portfolio companies) Details general: This standard provides a relative assessment (in %) of new suppliers screened for environmental issues (numerator) in relation to all new suppliers (denominator), according to the following definitions: ►New suppliers: First-time suppliers selected, approved and/or contracted in the period covered by the Report. ► Social impact: Assessments can be informed by audits, contractual reviews, documentation review at the time of approval, approval updates, involvement of both parties, and complaint and grievance mechanisms related to social aspects, including but not limited to, violations of human rights and labor practices, and impact on society, presented separately in the consolidation of this standard. Given the variety of sectors and segments, it is up to each portfolio company to determine the relevant criteria for its procedures, according to its specific characteristics. Details per portfolio company: ►banco BV: The total number of new suppliers includes suppliers that were not submitted to an approval process in 2021, since it is not required in this segment. Boundary: Consolidated (Votorantim + portfolio companies) Details general: This standard provides a relative assessment (in %) of suppliers screened for environmental issues (numerator) in relation to all active company suppliers (denominator), according to the following definitions: ► Suppliers: Suppliers that are considered active by the company and were selected, approved and/or contracted before the period covered by the report. ► Social impacts: Assessments can be informed by audits, contractual reviews, documentation review at the time of approval, approval updates, involvement of both parties, and complaint and grievance mechanisms related to social aspects, including but not limited to, violations of human rights and labor practices, and impact on society, presented separately in the consolidation of this standard. Given the variety of sectors and segments, it is up to each portfolio company to determine the relevant criteria for its procedures, according to its specific characteristics. Details per portfolio company: ►banco BV: The total number of suppliers includes those that were not submitted to an approval process in 2021, since it is not required in this segment. Exceptions ►Data reported by Votorantim Cimentos includes only operations in Brazil. ►Nexa's reporting for the indicator does not include the company's offices located in Luxembourg and the United States.. = Changes None Justifications N/A ►Data reported by Votorantim Cimentos includes only operations in Brazil. None N/A ►Nexa's reporting for the indicator does not include the company's offices located in Luxembourg and the United States. 102#104Consolidated financial statement Statements Consolidated balance sheet Consolidated statement of income Consolidated statement of comprehensive income Consolidated statement of changes in equity Consolidated statement of cash flows Consolidated statement of value added General considerations 1 General considations 2 Presentation of the condensed consolidated interim financial statements 2.1 Basis of preparation 2.2 Consolidation 2.3 Foreign currency conversion 3 Changes in accounting policies and disclosures Estimates and assumptions 4 Critical accounting estimates and judgments 5 Social and environmental risk management 6 Financial risk management 6.1 Financial risk factors 6.1.1 Derivatives contracted 6.1.2 Estimated fair value 6.1.3 Sensitivity analysis 7 Financial instruments by category 8 Credit quality of financial assets Assets 9 Cash and cash equivalents 10 Financial investments 11 Trade receivables 12 Inventory 13 Financial instruments - Shares 14 Taxes recoverable 15 Related parties 16 Electric power future contracts 17 Investments 18 Property, plant, and equipment 19 Intangible assets Liabilities and equity 20 Borrowing 21 Lease 22 Confirming payables 23 Current and deferred income tax and social contribution 24 Provisions 25 Use of public assets 26 Pension plan and post-employment health care benefits 27 Equity Results 28 Net revenue from products sold and services rendered 29 Expenses by nature 30 Other operating expenses, net 31 Finance results, net Supplementary information 32 Tax benefits 33 Insurance 34 Assets and liabilities classified as held for sale 35 Supplementary information - Business segments 36 Subsequent events 103 =#105Consolidated balance sheet Ended December 31 - All amounts in millions of reais unless otherwise stated (A free translation of the original in Portuguese) Note 2021 2020 Note 2021 2020 Assets Liabilities and equity Current assets Cash and cash equivalents Financial investments Derivative financial instruments 10 6.1.1 (a) 13,680 3,132 106 9,783 5,678 221 Derivative financial instruments - put option 6.1.1 (b) 4,704 Current assets Borrowing Derivative financial instruments Lease liabilities Confirming payables Trade payables 20 (a) 6.1.1 (a) 603 556 1,407 511 21 (b) 330 235 22 3,405 2,380 6,914 5,404 Trade receivables 11 3,679 3,209 Salaries and payroll charges 1,377 1,174 Inventory 12 7,167 4,724 Taxes payable 1,627 760 Taxes recoverable 14 2,709 2,033 Advances from clients 188 182 Dividends receivable 15 305 176 Dividends payable 15 1,624 44 Electric power futures contracts 16 845 49 Use of public assets - UBP 25 175 97 Financial instruments - firm commitment 16 800 75 Other assets 944 Assets classified as held-for-sale 34 37,271 1,281 538 26,411 Deferred revenue - silver streaming Other liabilities 185 141 1,529 924 25 19,313 13,334 Liabilities related to assets held-for-sale 34 ☑ 38,552 26,436 1,163 20,476 13,336 Non-current assets Long-term receivables Non-current assets Financial investments Financial instruments - shares 10 13 20 Borrowing 20 (a) Derivative financial instruments 6.1.1 (a) Derivative financial instruments 6.1.1 (a) 2,801 847 2,590 Lease liabilities 21 (b) 24,401 526 1,221 23,658 2,412 623 1,945 Deferred income tax and social contribution 23 (b) 3,824 2,373 Derivative financial instruments put option 6.1.1 (b) 252 Related parties 15 75 11 Taxes recoverable 14 Related parties 15 Deferred income tax and social contribution 23 (b) 2,033 225 2,696 2,966 Provision 24 (a) 3,751 3,586 196 Use of public assets - UBP 25 1,692 1,400 2,731 Judicial deposits 24 (b) Pension plan and post-employment health care benefits 26 563 524 214. 193 Financial instruments - firm commitment 16 3,063 210 Electric power futures contracts 16 2,962 9 Deferred revenue silver streaming 637 722 Securitization of receivables 211 149 Other liabilities 841 827 Other assets 705 12,694 701 11,752 40,594 36,346 Investments 17 Advance for investment property 1.1 (aa) 13,691 58 12,698 Total liabilities 61,070 49,682 Property, plant and equipment 18 (a) 35,078 Intangible assets 19 (a) Right to use assets arising from leases 21 (a) Biological assets 16,703 1,492 90 30,105 14,594 Equity Share capital 28,656 28,656 Revenue reserves 14,741 8,806 797 Carrying value adjustments 27 (c) 6,518 4,879 96 Total equity attributable to the owners of the Company 49,914 42,341 79,806 70,042 Non-controlling interests 7,374 4,455 Total assets 118,358 96,478 Total equity 57,288 46,796 Total liabilities and equity 118,358 96,478 104 =#106Consolidated statement of income Years ended December 31 - All amounts in millions of reais unless otherwise stated (A free translation of the original in Portuguese) Note 2021 2020 Note 2021 2020 Continuing operations Income tax and social contribution 23 (a) Net revenue from products sold and services rendered 28 Cost of products sold and services rendered Gross profit 29 49,008 (37,934) 35,383 (28,424) Current Deferred (1,801) (1,631) (900) Profit (loss) from continuing operations 6,885 (686) (3,053) 11,074 6,959 Discontinued operations Operating expenses (income) Selling 29 General and administrative 29 Other operating income (expenses), net 223 (901) (2,841) (889) (2,503) Profit (loss) on discontinued operations Profit (loss) for the period attributable to the owners of the Company 34 235 (12 7,120 (3,065) 30 605 (3,137) (2,294) (5,686) Profit (loss) attributable to the owners of the Company 6,400 (1,636) Profit (loss) attributable to non-controlling Operating profit before equity results and finance results interests 7,937 1,273 Profit (loss) for the period 720 7,120 (1,429) (3,065) Results from equity investments Weighted average number of shares - Equity in the results of investees 17 (c) 585 727 thousands (to the owners of the Company) 18,278,789 18,278,789 Realization of other comprehensive income on disposal of investments Basic and diluted earnings (loss) per 20 thousand shares, in reais 350.13 (89.50) 605 727 From continuing operations Finance results, net Finance income Finance costs Result of derivative financial instruments Foreign exchange losses, net 31 908 (3,014) 4,386 (505) 660 (2,979) Basic and diluted earnings (loss) per thousand shares, in reais 337.27 (88.84) From discontinued operations (121) Basic and diluted earnings (loss) per thousand shares, in reais 12.86 (0.66) (1,027) 1,775 (3,467) Profit (loss) before income tax and social contribution 10,317 (1,467) 105 =#107Consolidated statement of comprehensive income Years ended December 31 - All amounts in millions of reais unless otherwise stated (A free translation of the original in Portuguese) Note 2021 2020 Note 2021 2020 Other components of comprehensive income that will not be reclassified to profit or loss Net income (loss) for the year 7,120 (3,065) Other components of comprehensive income to be subsequently reclassified to profit or loss Attributable to the owners of the Company Foreign exchange variations 27 (c) Attributable to the owners of the Company Remeasurement of retirement benefits, net of taxes Credit risk of debts measured at fair value Attributable to non-controlling 27 (c) 37 (9) (169) 25 621 3,062 Remeasurement of retirement benefits, net of tax 12 Hedge accounting for net investments abroad, net of taxes Hedge accounting for the operations of subsidiaries (12) (289) 601 (636) Other components of comprehensive income for the period 1,786 3,882 Fair value of assets available for sale of unconsolidated investments (3) (25) Of operations Realization of comprehensive income in the sale of shareholding (265) (173) Continued operations 8,671 829 Adjustment to fair value of shares, net of taxes 144 712 Discontinued operations 235 (12) 8,906 817 Inflation adjustments for hyperinflationary economies 583 426 Participation in other comprehensive results of investees (58) (2) Comprehensive income attributable to Owners of the Company 8,039 1,295 Attributable to non-controlling Foreign exchange variations of investees Hedge accounting for the operations of subsidiaries Effect of dilution of equity interest - acquisition of investee Non-controlling interests 867 (478) 88 961 8,906 817 47 Participation in other comprehensive results of investees (3) (7) 1,746 4,026 106 =#108Consolidated statement of charges in equity Years ended December 31 - All amounts in millions of reais unless otherwise stated (A free translation of the original in Portuguese) Attributable to the owners of the Company = At January 1, 2020 Loss for the year Other components of comprehensive income Comprehensive income for the year Distribuition of dividends Effect of liquidation of related parties on the spin-off of investees Reversal of deliberate dividends and interest on equity Loss absorption At December 31, 2020 At January 1, 2021 Profit for the year Other components of comprehensive income Comprehensive income for the year Distribution of dividends Effect in the dilution on interest in investee - McInnis Gain in the dilution on interest in investee - CBA Net gain on sale of shares of investee - CBA Mandatory minimum dividends Constitution of reserves Total contributions and distributions to shareholders At December 31, 2021 Revenue reserves Note Share capital incentives 28,656 Tax Profit 10 Legal retention 1,032 10,123 Retained Carrying (loss) value earnings adjustments 1,948 Non- controlling Total 41,769 interests Total equity 5,138 46,907 (1,636) (1,636) (1,429) (3,065) 2,931 2,931 951 3,882 (1,636) 2,931 1,295 (478) 817 (800) (800) (205) (1,005). 37 37 37 40 40 40 (1,636) 1,636 (2,359) 1,636 (723) (205) (928) 1.1 (0) 28,656 10 1,032 7,764 28,656 10 1,032 7,764 4,879 42,341 4,455 46,796 4,879 42,341 4,455 46,796 6,400 6,400 720 7,120 1,638 1,638 147 1,786 6,400 1,638 8,038 867 8,905 (1,016) (1,016) (176) (1,192) 1,513 1,513 1,314 2,827 214 214 914 1,128 344 344 344 (1,520) (1,520) (1,520) 320 320 4,560 (4,880) 5,615 (6,400) (465) 2,052 1,587 28,656 10 1,352 13,379 107 6,517 49,914 7,374 57,288#109Consolidated statement of cash flows Years ended December 31 - All amounts in millions of reais unless otherwise stated (A free translation of the original in Portuguese) Note 2021 2020 Note 2021 2020 Cash flow from operating activities Profit (loss) before income tax and social contribution Profit (loss) of discontinued operations 10,317 235 (1,467) Decrease (increase) in assets Financial investments Derivative financial instruments Trade accounts receivable 2,910 (840) (1,040) (239) (592) 73 (12) Inventory (2,425) 45 Taxes to recover 62 754 Adjustments to items that do not represent changes in cash and cash equivalents Related parties (25) 33 Depreciation, amortization and depletion Depreciation, amortization and depletion - discontinued operations 29 3,637 3,293 Judicial deposits (30) 125 Other accounts receivable and other assets 38 (64) 29 90 Increase (decrease) in liabilities Equity in the results of investees 17 (a) (585) (727) Interest, indexation and foreign exchange variations Trade payables 1,851 2,071 Salaries and social charges Provisions (reversal) for the impairment of Use of public assets fixed and intangible assets 30 (559) 2,778 Provisions for the impairment of investments 30 827 Taxes payable Advances from customers Loss on sales of fixed and intangible Confirming payables assets, net 104 74 Other obligations and other liabilities Adjustment to fair value of loans and financing Cash provided by operating activities 1,642 (111) 230 250 158 (8) 352 (230) 50 57 729 280 (242) 13,755 6,160 20 (b) (53) 95 Constitution of provisions, net 602 202 Derivative financial instruments 66 252 Interest paid on borrowing and use of public assets (1,425) (1,320) Electric power future contracts 16 (171) 54 Income tax and social contribution paid (1,163) (407) Net revenue on sale of investments 30 (629) (427) Net cash provided by operating activities 11,167 4,433 Net gain from financial instrument - put option 6.1.1 (b) (4,452) 403 Gain on purchase of investee 30 (243) (366) PIS and COFINS credit recognition on the ICMS calculation basis (168) Provision (reversal) for estimated loss from doubtful accounts, net (44) Renegotiation of hydrological risk 19 (448) Loss on debt renegotiation 382 10,971 17 6,028 108 =#110Consolidated statement of cash flows Years ended December 31 - All amounts in millions of reais unless otherwise stated (A free translation of the original in Portuguese) Note 2021 2020 Note 2021 2020 Cash flow from investment activities Proceeds from disposals of fixed and intangible assets 840 242 Increase (decrease) in cash and cash equivalents 3,811 2,231 Net cash received on sale of shares Sale of financial instruments - shares 910 1,615 1,462 Effect of companies excluded from consolidation Acquisition of financial instruments shares (133) (1,368) Dividends received 471 172 Acquisitions of property, plant and equipment Effect of fluctuations in exchange rates Cash and cash equivalents at the beginning of the year 219 7 1,283 9,783 6,262 18 (5,346) (3,516) Cash and cash equivalents at end of the year 13,680 9,783 Advance for acquisition of investment properties (58) Increase (reduction) in biological assets (7) Non-cash transactions Acquisitions of investments (593) (222) Acquisition of investments with issuance of shares 1.1 (0) 2,827 Increase in intangible assets 19 Net cash used in investment activities (666) (4,195) (22) (1,891) Cash flow from financing activities New borrowing Repayment of borrowing Repayment of leasing contracts Derivative financial instruments Funding by public offering of investee shares Dividends paid Net cash used in financing activities 20 (b) 20 (b) 4,414 (6,779) 11,772 (10,846) (363) 42 (251) 55 657 (1,132) (1,041) (3,161) (311) 109 =#111Consolidated statement of value added Years ended December 31 - All amounts in millions of reais unless otherwise stated (A free translation of the original in Portuguese) Note 2021 2020 Note 2021 2020 Revenue Distribution of value added Sales of products and services Estimated loss on doubtful accounts 11 Other operating income, net 30 56,586 68 46 40,489 (31) 56,700 484 40,942 Personnel and payroll charges Direct remuneration Social charges Benefits Inputs acquired from third parties 3,373 1,151 2,873 1,122 737 709 5,261 4,704 Raw materials and other production inputs Materials, energy, outsourced services and others (31,948) (22,915) Taxes and contributions Federal Impairment of assets 30 Gross value added (887) 559 24,424 (821) (2,778) 14,428 State Municipal Deferred taxes 4,645 2,909 4,089 2,798 23 18 1,631 686 10,388 6,411 18, 19 and Depreciation, amortization and depletion 21 Net value added generated by the Company (3,637) 20,787 (3,293) Third-party capital remuneration 11,135 Finance costs and foreign exchange losses Rentals 7,689 9,493 378 345 8,067 9,838 Value added received through transfers Equity in the results of investees Own capital remuneration 17 Finance income and foreign exchange losses 585 9,464 10,049 727 6,026 6,753 Non-controlling interests 720 (1,429) Dividends (2,712) (1,005) Reinvested profits (offset losses) 8,877 (619) Total value added to distribute 30,836 17,888 Loss on discontinued operations 235 7,120 (12) (3,065) 110 Value added distributed 30,836 17,888 =#112Notes to the consolidated financial statements at December 31, 2021 - All amounts in millions of reais unless otherwise stated 1. General considations Votorantim S.A. (the Company, the Parent Company, or VSA), is a long-term Brazilian holding company. With its headquarters in the city of São Paulo, Brazil, the Company's purpose is to manage assets and companies, and to invest in other companies in order to further its objectives. The Company, through its subsidiaries and associates, operates in the following segments: building materials, finance, aluminum, clean and re- newable energy, metals and mining, agrobusiness, long steel, real estate and infrastructure. 1.1. Main events that occurred during the year of 2021 - (a) Prepayment of export credit note Nexa During the first half of 2021, the subsidiary Nexa Resources S.A. (Nexa) pre- paid the outstanding principal and accrued interest of an Export Credit Note in Brazil in the amounts of Brasilian Reais (R$) 495 and R$ 16, respectively. On June 28, 2021, the subsidiary Nexa prepaid the outstanding principal of a Credit Line in the amount of United States Dollars (USD) 43 million (R$ 234) (b) Sale of Suzano shares - VSA On January 23, 2021, VSA sold 25,000,000 common shares in Suzano S.A (Suzano) held by the Company, totaling a net gain of R$ 415. After the sale, VSA held 25,180,059 common shares, corresponding to approximately 1.9% of Suzano's total and voting capital. (c) Dividend distribution - Nexa On February 11, 2021, the Board of Directors of Nexa approved the distri- bution of total dividends to shareholders of approximately USD 35 million (R$ 121), which was paid on March 12, 2021. During the year ended December 31, 2021, the indirect subsidiary Pollarix S.A. (Pollarix) declared dividends of R$ 132 to minority interests held by Votorantim Geração de Energia S.A., an intercompay. (d) Use of a Committed Credit Facility by St. Marys Cements Inc. (St. Marys) During 2021, to face the period of seasonality in the northern hemisphere, the indirect subsidiary St. Marys made an additional withdrawal from the revolving credit line Committed Credit Facility. As of December 31, 2021, the amount used under this credit facility totaled the equivalent of USD 46 million, considering the exchange rate on the withdrawal dates for amounts withdrawn in Canadian dollars. The amount of USD 244 million remained at the disposal of the Company's subsidiaries for further withdrawals. 111 =#113(e) Incident at the collecting substation of the jointly controlled company VTRM Energia Participações S.A. (VTRM) On February 12, 2021, an incident at the collecting substation that links the companies in the Ventos do Araripe III complex, formed by wind far- ms belonging to the jointly controlled VTRM, caused the remaining power transformer to be disconnected from this substation. This caused a com- plete interruption in the flow of power generation from the complex, since the other transformer was out of operation due to an accident in June 2020. The park returned to commercial operation on April 29, 2021, the final date of the repair of the transformer that had been out of operation since June 2020. In the interim, while there is only one transformer, the generation of the park will be limited. Concerning the second incident, VTRM Management contacted the manu- facturer of the transformer and the main companies in the sector to obtain an opinion on the feasibility of the transformer's repair or need for replace- ment, and, due to a favorable opinion on the likelihood of successful repair, proceeded with its repair. The interruption in the flow of power generation from the complex should be reflected in the provision for annual reimbursement that the companies calculate on a monthly basis due to the effective generation of energy, with a consequent reduction in the net revenue of the companies, until the situation is normalized. This impact has been minimized due to the insurance policy that the subsidiaries have for the main risks associated with the assets, including da- mage to transformers, with coverage for material damages and loss of profits. During 2021, the subsidiary Votorantim Geração de Energia S.A. (VGE) discussed with the insurer the assumptions involved in calculating the in- demnity for claims and submitted its claim for evaluation. With regard to the first claim, the insurer signaled in August 2021 that the total indemnity amount will be around R$53 (R$ 5 for material damages and R$ 48 for loss of profits). On December 28, 2021, R$ 5 was received through the subsidiary of VTRM, Ventos de Santo Augusto, and R$ 46 through the subsidiary VTRM, there is still an outstanding amount of R$ 2, which will be paid in the first quarter of 2022. (f) Issue of Certificates of Real Estate Receivables (CRI) - Votorantim Cimentos S.A. (VCSA) On February 15, 2021, through RB Capital Companhia de Securitização, the subsidiary VCSA and the indirect subsidiary Votorantim Cimentos N/NE S.A. (VCNNE) issued Certificates of Real Estate Receivables (CRI) in the Brazilian capital market, amounting to R$ 400, maturing in 2033. The subsidiary VCSA and the indirect subsidiary VCNNE contracted a forward derivative financial instrument (swap) which aims to exchange the exposure of the floating IPCA+ rate to floating rate CDI +. (g) 12th issue of debentures by VCSA In 2021, the subsidiary VCSA and indirect subsidiary VCNNE amortized their debentures maturing in 2023 and 2024, amounting to R$ 1,570, with emphasis on: (i) VCSA fully amortized its 2nd public issue of debentures in the amount of R$ 800; (ii) VCSA partially amortized its 6th and 8th public issuances of debentures in the amount of R$ 207 and R$ 113, respectively; and (iii) VCNNE fully amortized its 1st public issue of debentures in the amount of R$ 450. On the other hand, the subsidiary VCSA raised the aggregate amount of R$950 through its 12th and 13th public issuances of debentures, with res- tricted placement efforts, maturing in 2026 and 2028, respectively. (h) Approval of dividend distribution - VCSA At the Extraordinary General Meetings of the subsidiary VCSA, held on February 25, 2021 and August 18, 2021, the shareholders approved the distribution of dividends in amount of R$ 345 and R$ 316, respectively, totaling R$ 661. All of these dividends were paid in the period together with the mandatory minimum dividends for the year ended December 31, 2020 in the amount of R$ 85. = 112#114Additionally, on December 13, 2021, the Board of Directors of subsidiary VCSA approved the distribution of dividends in the amount of R$ 535, from retained earnings reserves, which were paid to shareholders in February 2022. (i) Acquisition of shares in Tinka Resources Limited (Tinka) - Nexa On March 17, 2021, the subsidiary Nexa acquired 29,895,754 common shares of Tinka, a company involved in the acquisition and exploration of minerals from properties located in Peru, in a private transaction at a price of Canadian Dollars (CAD) 0.26 per share. As a result, Nexa owns 8.8% of the issued and outstanding common shares of Tinka, which owns 100% of the Ayawilca zinc-silver project in Peru. On April 16, 2021, the subsidiary Nexa acquired another 654,758 common shares of Tinka. As a result, after the operations carried out in March and April 2021, the subsidiary Nexa holds a total of approximately 9% of the issued and outstanding common shares of Tinka. (j) Assets Retirement Obligation (ARO) remeasurement - Companhia Brasileira de Alumínio (CBA) In March 2021, the subsidiary CBA updated its environmental obligations for the demobilization of assets, amounting to R$ 73 for the Niquelândia unit, and concomitantly constituted impairment on this increase in fixed assets. (k) Temporary suspension of the Extreme North Mine of Vazante - Nexa In March 2021, during a regular inspection of the Extreme North mine in Vazante, operated by the subsidiary Nexa, above-normal ground displace- ments were identified in the area around the mine's main access and escape route. The Extreme North mine requires aquifer dehydration for its opera- tions, which leads to depressurization and can cause local disturbances in the rock mass surrounding the mine. As a preventive measure, activities in this area were temporarily suspended. The subsidiary Nexa, supported by external experts, began a detailed analy- sis of the geological and geotechnical conditions to ensure the safety of its workers and the resumption of operating activities at the Extreme North mine. In August 2021, the mine's main access and escape route and the deve- lopment of new mine areas were re-established. Thus, production at the Extreme North mine is expected to resume during the first quarter of 2022. (I) GSF (Generation Scale Factor) - VCNNE, CBA, VGE and Nexa As disclosed in the consolidated financial statements for the year ended December 31, 2020 (Note 1.1 (t)), the Company follows the regulatory process of Law No. 14.052, published on September 9, 2020, which es- tablishes new conditions for the renegotiation of the hydrological risk of electricity generation, providing for the compensation of generators by extending the term of concession of their grants due to the occurrence of non-hydrological risks that negatively influenced the GSF after 2012. In the first quarter of 2021, the indirect subsidiary VCNNE recognized cre- dit with a gross amount of R$ 58 and deferred taxes of R$ 20 related to the renegotiation of the hydrological risk of electricity generation, by extending the concession period for the use of the public asset of the Pedra do Cavalo plant in 7 years. The subsidiary CBA also recognized this credit, on March 31, 2021, with a total amount of R$ 142 and deferred taxes of R$ 48, by extending the concession period for the use of the public assets listed below: Power Plant UHE Sobragi UHE Piraju Dead line of extension (in days) Value 567 34 1,783 37 1,941 20 UHE Salto do Rio Verdinho 2,555 51 UHE Ourinhos = 113#115The approval made by the Board of Directors did not extend to the Canoas, Machadinho, Barra Grande and Campos Novos plants, since they are not fully managed by the Company, but through consortia or other entities. All had their extension deadlines already approved by National Eletric Energy Agency (ANEEL). Power Plant Canoas 1 Canoas 2 Machadinho Barra Grande Campos Novos Approval resolution Dead line of extension (in days) 2,919 1,460 2,919 1,467 2,932 1,180 2,932 2,932 1,757 1,318 With this, what is lacking is the deliberation by the governance bodies of each one by all of its consortium members and other shareholders, who must agree on their portions of right levied on the renegotiation before the effective approval. For the subsidiary VGE, on March 1, 2021, the calculations of the extension of the grants of the plants that adhere to the renegotiation of the hydro- logical risk of the Free Contracting Environment (ACL) were presented and forwarded to ANEEL for analysis and approval, which should take place in up to 30 days (expected March 30, 2021). However, such approval did not take place within this period because of funds claimed by some plants with ANEEL, so that new conditions for the renegotiation of hydrological risk related to the Regulated Contracting Environment (ACR) were included. As a consequence, ANEEL requested that the GSF values be recalculated for a new round of analysis and approval. Pursuant to Ratification Resolutions No. 2,919 of August 3, 2021 and No. 2,932 of September 14, 2021, ANEEL ratified the term of grant ex- tension of the hydroelectric plants participating in the Energy Reallocation Mechanism (MRE) related to the ACL, according to Eletric Energy Trading Chamber (CCEE) calculations, including the Paraibuna and Porto Primavera plants (whose concessions are held by Companhia Energética de São Paulo- CESP, a subsidiary of VTRM) and Igarapava, Amador Aguiar I and Picada (whose concessions are linked to the investees, LDRSPE Geração de Energia e Participações Ltda., LDOSPE Geração de Energia e Participações Ltda. and LDQSPE Geração de Energia e Participações Ltda., subsidiaries of Pollarix). As for the first two plants mentioned, the Board of Directors of CESP appro- ved in March 2021: (i) the agreement with the terms proposed in Official Letter 36/2021, so that an amendment to the Concession Agreement 3/2004 could be signed, to forecast the provisional extension of six months of the concession of the Paraibuna HPP; (ii) adherence to the renegotiation of the hydrological risk for the two Paraibuna and Porto Primavera plants and the consequent extension of the concession due to the compensation provided for in the terms of Law 14,052/2020. The accounting recognition was carried out in the third quarter of 2021, after approval by ANEEL of the amounts and terms of extension of the concessions. Regarding the Igarapava, Amador Aguiar I and Picada plants, approval of the adhesion to the hydrological risk renegotiation - GSF, took place on September 24, 2021 by the governance bodies of the investee Pollarix. Additionally, through Ratification Resolution No. 2,932 of September 14, 2021, ANEEL ratified the term of extension of the concession of the hydro- electric plants related to the ACR, among which are the Barra Grande plants, in which the indirect investee CBA Energia holds 15% of participation, and Campos Novos, in which the indirect investees Pollarix and CBA Energia hold a 20.98% and 23.78% interest, respectively. The subject will be deliberated by the governance bodies, all the consortium members and other shareholders, who must agree on their portions of right levied on the renegotiation, as disclosed by ANEEL. Considering the innovation brought about by the renegotiation of the hydrological risk and the absence of a CPC Pronouncement (Accounting = 114#116Pronouncements Committee), Interpretation or Guidance that applies spe- cifically to the topic, the Company's Management exercised its judgment in the development and application of an accounting policy, as provided for in CPC 23 - Policies Accounting, Change in Estimate and Error Correction, using by analogy the precepts of CPC-04 (R1) - Intangible Assets, considering that it is essentially an intangible asset related to the right of grant arising from compensation for costs incurred in fiscal years above. Additionally, considering also by analogy paragraph 44 of the aforementioned CPC - 04 (R1), the asset constituted by the renegotiation of the non-hydrological risk was recognized at fair value, considering the Company's best estimate, based on the parameters determined by the regulation of ANEEL, as well as the values of compensation calculated by the CCEE. The amounts were transformed by ANEEL into an extension of the concession term, which will be amortized using the straight-line method until the end of the concession term, adjusted with the extension as from the renegotiation. The table below shows the amounts involved and the concession extension period for each plant: = Investees GSF Value Impairment GSF (i) % Reflected on VGE Equity method impact Extension period End date of grant Plants Porto Primavera CESP Companhia Energética de São Paulo 739 (299) 20.00% 88 7 years April 13, 2056 Paraíbuna CESP Companhia Energética de São Paulo 43 20.00% 9 15 months June 3, 2022 Igarapava L.D.R.S.P.E. Empreendimentos e Participações Ltda 13 66.67% 9 2 years and 7 months. September 9, 2031 L.D.O.S.P.E. Empreendimentos e Amador Aguiar I Participações Ltda 17 66.67% 11 6 years November 25, 2042 L.D.Q.S.P.E. Empreendimentos e Picada Participações Ltda 24 66.67% 16 5 years March 30, 2041 Campos Novos L.D.Q.S.P.E. Empreendimentos e Participações Ltda 157 20.98% 33 3 years and 5 months January 6, 2039 Baesa L.D.Q.S.P.E. Empreendimentos e Participações Ltda 179 23.79% Total 1,172 (299) 43 208 4 years and 9 months March 6, 2041 (i) In possession of the calculations approved by ANEEL for Porto Primavera, CESP updated the impairment test on hydrological risk (GSF), in order to analyze the ability to recover the book value of the intangible asset in its future operations, considering the future cash flow from operations and the indemnity amount at the end of the concession, and identified the need to set up a provision for impairment of the GSF, in the amount of R$ 299, recognized in CESP's income. 115#117(m) Approval and payment of dividends by Votorantim Geração de Energia S.A. (VGE) On April 30, 2021, the Management's proposal was approved for the sub- sidiary VGE to pay dividends for the year ended December 31, 2020, in the amount of R$ 200, of which R$ 101 was the mandatory minimum dividend and R$ 99 was an additional dividend, to be paid in national currency to the Company, of which R$ 100 was paid on April 13, 2021, R$ 70 was paid on December 17, 2021. The remaining amount will be paid according to cash availability. (n) Restructuring of financial obligations - Acerías Paz del Río (APDR) In April 2021, the subsidiary APDR carried out a resettlement of its fi- nancial obligations, settling the principal balance of outstanding loans with Citibank in the amount of Colombian Peso (COP) 86 billions (R$ 133) and contracting new loans with Davivienda banks in the amount of COP 25 billions (R$ 39) and Itaú, in the amount of COP 21 billions (R$ 33), resulting in a reduction of COP 40 billions (R$ 62). (o) Business combination with McInnis Cement Inc (McInnis) - VCSA In April 2021, the indirect subsidiary St. Marys concluded a business combi- nation with the acquisition of the entire issued share capital of McInnis, for a total amount of USD 553 million (R$ 2,989). McInnis is a company that manufactures, distributes and sells cement in the eastern Great Lakes region of Canada and on the northeast coast of the United States. Its business assets include a modern plant in Port-Daniel- Gascons in Quebec, Canada, with an annual production capacity of 2.2. million tons of cement, as well as a deepwater terminal, adjacent to the plant, and a distribution network that has 10 terminals (marine, rail and road). This transaction complements St. Marys in the region, enabling expansion of operations and strengthening strategic positioning through increased cement production capacity, operational efficiencies and an improved dis- tribution network. The effect of this combination is shown below: Consideration transferred Cash paid on acquisition of McInnis Price adjustment (working capital and net debt) Promissory notes to be paid in 2025 Issue of shares Total consideration 11 117 34 2,827 2,989 As a result, St. Marys issued 170,000 shares in consideration transferred in exchange for control of the acquired McInnis, representing a 17% stake in St. Marys. The fair value of the shares issued was based on a weighted average resulting from the assessment of discounted cash flow and market value. This transaction resulted in the dilution of the interest held indirectly by VCSA in St. Marys, and, consequently, in the recognition of the interest of non-controlling shareholders and an increase in the equity valuation adjustment attributable to the controlling shareholders. The effect of this dilution can be summarized as follows: Consideration paid to non-controlling interests, representing 17% of St. Marys' carrying amount immediately prior to the transaction Consideration received representing 83% of the additional net assets consolidated as a result of McInnis' acquisition Excess of consideration received, recognized in other comprehensive income Carrying amount attributable to non-controlling shareholders Total shares issued by St. Marys to the non-controlling shareholders (833) 2,346 1,513 1,314 2,827 116 =#118The provisional amounts of assets and liabilities recognized as a result of the acquisition are: Recognized amounts of identifiable assets and assumed liabilities Cash and cash equivalents Trade receivables Inventory Prepaid expenses and other assets PP&E (p) Loan agreement with National Bank for Economic and Social Development (BNDES) - Nexa In July 2020, the subsidiary Nexa contracted a loan approved by BNDES and, during the second quarter of 2021, it made disbursements of the following amounts: (i) On May 28, 2021, the amount of R$ 160 (approximately USD 31 million) was used; (ii) On June 18, 2021, the amount of R$101 (approximately USD 20 million) was used. 31 257 218 Deferred taxes and other (i) 23 588 3,152 Intangible assets. Right of use on lease agreements 285 788 Borrowing (733) Lease liabilities (788) Trade payables Other finance liabilities Acquired identifiable net assets Gain on acquisition of investments (324) (265) Of the total R$ 750 approved by BNDES, the subsidiary Nexa has already used R$ 736 (approximately USD 140 million). 3,232 = Total assets and liabilities (243) 2,989 The price paid for the acquisition totaled R$ 2,827 and, upon application of the acquisition method in accordance with International Financial Reporting Standard (IFRS) 3 / CPC 15 (R1) - Business Combination, the net assets and liabilities acquired totaled R$ 3,232, generating a gain on bargain purchase in the amount of R$ 243, recorded under Other operating income (expen- ses), net (Note 30). As indicated in CPC 15 (R1) / IFRS 3 - Business Combination, the Company has 12 months to fulfill the purchase price allocation (PPA) of the acquired assets and liabilities and complete the initial accounting for the acquisition. The fair value balances above are presented as provisional until the PPA works are completed. This contract is guaranteed by Nexa Recursos Minerais S.A. (Nexa BR) and Nexa and was contracted at a cost of Long Term Rates (TLP) + 3.39%, maturing in 2040. The resources are being used to finance the Aripuanã project. (q) Public Offering of Shares CBA On June 29, 2021, the subsidiary CBA announced its initial public offering and began trading its shares on the São Paulo Stock Exchange, under the ticker name CBAV3. On July 15, 2021, CBA announced the closing of its primary distribution public offering with the issuance of 62,500,000 common shares at a price of R$ 11.20 per share, and as a result CBA's net equity increased by R$ 657, net of transaction costs. As a result of this issue, the interest was diluted from 100% to 89.51%, resulting in a gain of R$ 214 in VSA. On July 15, 2021, the Company also negotiated a secondary distribution public offering of 62,500,000 of the shares held in CBA, with a net gain of R$ 270. 117#119On August 17, 2021, the Company sold a supplementary lot of 18,750,000 shares held in CBA at the price of R$ 11.20 per share, with a net gain of R$ 74. With the sales carried out on July 15 and August 17, 2021, VSA reduced its interest in CBA, with the Company now holding 75.87% of the subsidiary's capital. The gains from this transaction, at the time of R$ 558, were realized in the context of transactions between the controller and minority shareholders. As a result, in line with the Company's accounting policy, they were recogni- zed in retained earnings in shareholders' equity (Note 27). (r) Capital increase in the investee Janssen Capital B.V. - Janssen During 2021, the Company carried out a capital increase in the subsidiary Janssen, in the amount of R$ 1,978, in order to guarantee the manage- ment of the Company's assets. (s) Loan settlement - Nexa On July 9, 2021, indirect subsidiary Nexa Peru prepaid the outstanding principal amount of a bank loan of R$ 477 (approximately USD 91 million) and accrued interest of R$ 13 (approximately USD 2 million). The cross-cur- rency swap contracted associated with this debt was also closed generating a loss of USD 12 million. Consequently, the total value of this transaction was USD 105 million. As this debt is being accounted for using the fair value option, all market- -to-market effects and related credit risk will be reversed, with no impact on income. On July 28, 2021, the subsidiary Nexa prepaid the outstanding principal and accrued interest of a loan in the amounts of USD 80 million and USD 211 thousand, respectively. (t) Amendment of loan agreement by Votorantim Cimentos EAA Inversiones S.L. (VCEAA) On July 27, 2021, the indirect subsidiary VCEAA entered into an amend- ment to the loan agreement signed on 2020, to postpone the maturity from November 2025 to July 2026 and reduce the cost, in addition to increasing the contracted amount by EURO (EUR) 35 million (R$ 215). (u) Loan contracting by Corporacion Noroeste - VCEAA In July 2021, the indirect subsidiaries VCEAA and Votorantim Cementos España (VCE), signed two loan agreements in the amounts of EUR 40 million (R$ 246) and EUR 50 million (R$ 307), respectively, both maturing in July 2026. However, in December 2021, the indirect subsidiary VCEAA signed an amendment to postpone the maturity of the contract in the amount of EUR 40 million (R$ 246) from July 2026 to January 2027. (v) Acquisition of Superior Materials (Superior), Valley View Industries (Valley View) e A.G. Cementos Balboa, S.A.U. (Cementos Balboa). - VCSA (v.1) In July 2021, indirect subsidiary St. Marys completed the purchase of the remaining 50% interest in Superior Materials, a precast concrete company located in Detroit-Michigan, for a total amount of USD 38.5 million (R$ 197). With the completion of the transaction, St. Marys now holds 100% of Superior's interest. 118 =#120The effect of this acquisition can be summarized as follows: Consideration transferred Cash paid on acquisition of Superior Interest held previously Gain on measurement Total consideration The effect of this acquisition can be summarized as follows: Purchase consideration 197 Cash paid on acquisition of Valley View 74 Price adjustment (working capital and net debt) 126 Total purchase consideration 397 Recognized values of identifiable assets and liabilities assumed Amounts recognized of identifiable assets and assumed liabiities Accounts receivable Cash and cash equivalents 20 Inventories Accounts receivable Inventories 113 Property, plant and equipment 27 Prepaid expenses and other assets Intangible assets 5 Property, plant and equipment 155 Accounts payables and other liabiities Intangible assets Net identifiable assets acquired 129 Right of use on lease agreements 46 Goodwill Accounts payables and other liabiities (96) Lease liabilities (46) Total assets and liabilities Net identifiable assets acquired 353 231 4 235 9 9 76 105 (2) 197 38 235 Goodwill 44 397 Goodwill is attributable to the workforce and profitability of the acquired business. (v.2) In August 2021, indirect subsidiary St. Marys acquired Valley View, an Illinois-based aggregates company, for a total amount of USD 46 million (R$ 235). Valley View operates its aggregates business through five operating units, all located in the state of Illinois. It produces aggregates, agricultural limestone, gravel, shale and other products for the construction and road sectors and for the agricultural market. With this acquisition, Valley View's aggregates business will now be managed by VCNA Prairie LLC. Goodwill is attributable to the workforce and profitability of the acquired business. (v.3) In October 2021, indirect subsidiary VCEEA, acquired 100% of the share capital of Cementos Balboa. Cementos Balboa has a modern integrated cement plant located in sou- thwest Spain, with an annual production capacity of 1.2 million tons of cement. This acquisition is in line with Votorantim Cimentos' growth and positioning strategy, and represents an important step towards increasing competitiveness, accelerating the decarbonization program and strengthe- ning its presence in the Iberian Peninsula. With this acquisition, the produc- tion capacity installed in Spain increases to 4.3 million tons of cement per year, through the operation of five integrated cement plants. 119 =#121Details on the consideration transferred and the provisional amounts of assets and liabilities recognized as a result of the acquisition are as follows: 641 194 835 Purchase consideration Cash paid on acquisition of Balboa Fixed price Acquisition of CO2 emission rights (i) Total purchase consideration Recognized values of identifiable assets and liabilities assumed Cash and cash equivalents 21 Accounts receivable 26 Inventories 75 Prepaid expenses and other assets 10 Deferred taxes 11 492 94 Property, plant and equipment Intangible assets Emission right of CO2 Right of use on lease agreements Deferred taxes Lease liabilities Accounts payables and other liabiities Net identifiable assets acquired Goodwill Total assets and liabilities 220 2 (146) (3) (108) 694 141 835 (i) As indicated in CPC 15 (R1) / IFRS 3 - Business Combination, the indirect subsidiary has 12 months to fulfill the purchase price allocation (PPA) of the acquired assets and liabilities and complete the initial accounting for the acquisition. The goodwill arising from this business acquisition is essentially a technical goodwill that results from the recognition of the deferred tax liability arising from increases in the fair value of the net assets acquired. (w) Conclusion of the Wind Farms acquisition process CBA On August 30, 2021, the subsidiary CBA concluded the process of acqui- sition of the wind energy self-production assets Ventos de Santo Anselmo Energias Renováveis S.A. (Ventos de Santo Anselmo) and Ventos de Santo Isidoro Energias Renováveis S.A (Ventos of Saint Isidore). The wind farms are part of the Ventos do Piauí I and II complex, located between the states of Pernambuco and Piauí, with 171.6 MW of installed. capacity, equivalent to 74.4 average MW of assured energy. The energy supply will be destined for the Itapissuma and Aluminum Plants, which are expected to start in 2023. With the conclusion of the operation, the subsidiary reinforces its investments in the diversification of the renewable energy matrix. The total acquisition price by CBA is R$ 60, of which R$ 47 is a direct purchase by subsidiary CBA, and R$ 13 is a purchase made by the indirect subsidiary CBA Itapissuma Ltda, with annual installments to be paid between 2023 and 2027. These amounts were initially recognized at fair value and sub- sequently measured at amortized cost using the effective interest rate method. Additionally, the subsidiary CBA and VTRM signed an agreement for energy supply by CBA for a period of 10 years, with an option to repurchase the said assets at the end of the term of the supply agreement. The repurchase option of the said assets, provided for in the contract, can be exercised unilaterally by VTRM. (x) New Revolving Credit Facility - VCSA To replace the revolving credit facility (Global Revolving Credit Facility) con- tracted in August 2018 in the amount of USD 500 million and maturing in August 2023, in September 2021, the subsidiary VCSA and its subsidia- ries contracted a new revolving credit line with a syndicate of banks in the amount of USD 250 million maturing in September 2026, characterized as Sustainability-Linked, in line with its long-term sustainability commitments. The revolving credit facility is available for withdrawal at any time. = 120#122(y) Water crisis in Brazil The Company has been following closely the water crisis currently experien- ced by Brazil, which has significantly impacted the levels of reservoirs in the country's hydroelectric plants, consequently impacting the market energy prices experienced by energy consumers. The Company has evaluated the topic and so far has not identified any relevant effect that could affect the contracts it has with its counterparties. (z) Sale of properties - VSA On August 12, 2021, the Company signed a sale agreement for some pro- perties located in Minas Gerais. The price agreed between the parties was R$ 452, and the cost of writing off property, plant and equipment was R$ 209, recognized net in other operating income (expenses) (Note 30). (aa) Acquisition of the corporate tower of Alto das Nações - Altre Empreendimentos e Investimentos Imobiliários Ltda. (Altre) In September 17, 2021, the subsidiary Altre signed an agreement to purchase the Alto das Nações corporate tower with PNU Nações Unidas Desenvolvimento Imobiliário S.A., a wholly-owned subsidiary of WTorre. The building is part of the future Alto das Nações multipurpose real estate complex, located in Marginal Pinheiros, São Paulo. The purpose of this ac- quisition is to enable the expansion of the Company's activities. In order to complete the purchase, the Company made an advance in the amount of R$ 58, recorded under Advance for investment property. The payment of the residual installments will be carried out in accordance with the comple- tion of the works, scheduled for 2025. (bb) Issuance of the Aripuanã Project operating license - Nexa In October 07, 2021, the subsidiary Nexa obtained the operating licen- se for the Aripuanã greenfield project. This license was issued by the Environmental Secretariat of the state of Mato Grosso (SEMA). Aripuanã is an underground polymetallic mine containing zinc, lead and copper. Installation of facilities and equipment testing was completed in 2021, and commercial production is scheduled to start in the third quarter of 2022. (cc) Early settlement of borrowing under the terms of Law 4.131/1962 - VCSA The subsidiary VCSA entered into two loan agreements, under the terms of Law 4,131/1962, in amount of USD 100 million (R$ 515), with maturity in 2026 (both contracts include interest rate and currency swaps, derivative financial instruments, which aim both to exchange exposure to floating LIBOR rate and fixed rates to floating CDI rates and to exchange currency from US dollar to Brazilian real). The indirect subsidiary VCNNE made the total repayment of the borrowing under the terms of Law 4,131/1962, in amount of USD 75 million (R$ 409), with maturing in 2024. Consequently, the swap contract associated with this borrowing was also terminated. (dd) Committed Credit Facility - St. Marys In October, 2021, the indirect subsidiary St. Marys made a new payment of the available committed credit facility, in the amount of USD 55 million. The approximate amount of USD 218 million remains available for new withdrawals. (ee) Civil class action – VCSA On October 27, 2021, the subsidiary VCSA became aware, through news in the media, of a civil class action filed by the Federal Public Prosecution Office of São Paulo (MPF-SP), related to the decision issued by the Administrative Council for Economic Defense (CADE) due to alleged anti-competitive prac- tices in relation to the administrative proceeding that ended in October 2015. As stated in the Significant Event Notice disclosed, the VCSA has not yet been served in this action. = 121#123Finally, the direct subsidiary VCSA used several assumptions to estimate the amounts and percentages of the orders allocated to it, however the Company cannot guarantee that such assumptions will prevail, including considering the current stage of the processes and even the solidarity requests made by the public ministries, as described above, estimating the updated amount to R$5,587 of the possible contingency for both ACPs on December 31, 2021. It should be noted that this estimate does not represent any agreement by the subsidiary VCSA with the requests made by the Public Prosecutor's Office, but a mere estimate for purposes of reporting possible contingen- cies. The subsidiary VCSA classified the probability of loss of the ACPs as possible and, therefore, there are no amounts provisioned. (ff) Acquisition of 80% of Alux of Brasil Indústria e Comércio Ltda. (Alux) - CBA On November 3, 2021, the subsidiary CBA signed the agreement for the acquisition of 80% of the capital stock of Alux, for the price of R$ 133, which is subject to adjustments at closing, in the form of a purchase and sale agreement. The conclusion of the transaction was conditioned to the fulfillment of the usual obligations and conditions precedent, and the approval by CADE was obtained as detailed in Note 36 (d). Alux, located in Nova Odessa-SP, is one of the main suppliers of secondary aluminum in the country, with an installed capacity of 46 thousand tons per year. As one of the largest suppliers of secondary aluminum alloys in Brazil, Alux will allow the subsidiary CBA to enter a new market segment, which aims to expand its production capacity of recycled aluminum, starting to operate with greater relevance in this market. This transaction is in line with the subsidiary CBA's purpose of providing aluminum solutions that transform lives, in addition to reinforcing the sub- sidiary's Environmental, social and corporate governance (ESG) strategy, since the operation also encourages the circular economy and contributes for the production of aluminum with a lower carbon footprint. (gg) Acquistion of interest in Tellus III Holding S/A Company (Tellus) Altre - On November 30, 2021, the subsidiary Altre concluded the acquisition of all shares in Tellus, whose purpose is to invest in commercial, retail, resi- dential and/or industrial real estate segments. The purchase price agreed between the parties was fully paid by Altre to the sellers. The subsidiary Altre recognized the amount of R$ 59 related to the capital gain related to the indirect acquisition of the Atlas Officer Park (AOP) building. Reconciliation of purchase price allocation Amount paid to the selling parties (-) Equity's carrying amount of Tellus III (+) Judicial measure on withholding income tax Amount of purchase price allocation 11/30/2021 125 74 8 59 The added value was recognized as the difference between the amount paid in the transaction and the book value of Tellus' shareholders' equity, and is recog- nized in accordance with the application of the acquisition method provided for in CPC 15 (R1) - Business Combination. The amount was recorded under inventories in the consolidated balances and allocated under investments at Altre. AOP is a commercial development located in the Vila Leopoldina nei- ghborhood, in the city of São Paulo - SP, consisting of 4 towers totaling 36 thousand m2, which was about 90% occupancy in December 2021. The subsidiary Altre hired an independent entity to prepare an appraisal report on the fair value of the assets and liabilities acquired and to allocate the amount paid in the acquisition, scheduled for completion in 2022. The following table shows the transaction amounts: Composition of the acquisition price Amount paid to the selling parties Judicial measure on withholding income tax (-) Compensation of dividends receivable by Tellus III Payment of advance payment for future capital increase Total amount of acquisition 11/30/2021 125 10 (2) 37 170 122 =#124Current Free Float of CESP With the acquisition of this interest, subsidiary Altre obtained control of Jaguatirica Empreendimentos Imobiliários SPE S.A (Jaguatirica), owner of the Atlas Office Park project, which became part of the consolidated finan- cial statements of the subsidiary Altre. The table below shows the balances included in the consolidation: Jaguatirica Empreendimentos Imobiliários Financial investments Trade receivables Inventory of properties for sale Other assets Property, plant and equipment Intangible assets Taxes payable Other liabilities Deferred income tax and social contribution Assets and liabilities, net Current Structure VOTORANTIM Post Transation Structure Shareholders agreement Shareholders agreement VOTORANTIM energia CPP Investments VOTORANTIM CPP Investments 50% 50% VTRM Current Free Float of CESP 11/30/2021 1 12 194 10 1 Nova VTRM MERCADO 100% NOVO 40% 60% 5 1 1 CESP NIVEL 1 EMPROVESPA CESP Assets of VTRM 4 218 Assets of Votorantim Energial (hh) Corporate restructuring resulting from the Operations VTRM and CESP - VGE On October 18, 2021, the Company and the Canada Pension Plan Investment Board (CPP Investments) announced their intention to consolidate energy assets in Brazil, which will have shares listed on B3's Novo Mercado. As part of the reorganization process, the companies of the Votorantim group: CBA, Votorantim Cimentos and Nexa Resources will assume the ma- nagement of their energy self-production assets that are currently under the administration of Votorantim Energia, and will include several steps. Below is a breakdown of the steps taken throughout 2021. The table below shows how this corporate restructuring transaction will take place: The consolidation is intended to take place through two main transactions and will comprise several steps, which we detail below. VTRM Transaction: (a) Creation of CESP's independent Committee On October 21, 2021, CESP's Board of Directors approved the creation of a special independent Committee (Committee) which, in compliance with the guidelines provided for in the Guidance Opinion of the Securities Commission n° 35, has the function of negotiating the transaction of cor- porate reorganization proposed in a non-binding manner by VSA and CPP Investments for the merger of all shares issued by CESP into VTRM. The Committee is composed of: (a) an administrator chosen by the majority of the Board of Directors; (b) a director elected by the non-controlling sha- reholders; and (c) a third party, administrator or not, chosen jointly by the other two members. The resolutions already issued by the Committee are described in Note 36 - Subsequent Events. 123 =#125(b) VTRM IPO and Listing on the Novo Mercado On December 10, 2021, VTRM submitted an application for registration as a publicly-held company category A with the CVM (Open Public Offering) and for listing on the Novo Mercado of B3 (Listing on the Novo Mercado), noting that the effective listing and trading of Nova VTRM shares on the Novo Mercado will depend on the conclusion of the CESP Transaction. (c) Proposal for the merger of CESP Shares into VTRM In order to allow CESP's minority shareholders to participate in the New VTRM, a proposal for the merger of shares was presented to the indepen- dent special Committee, with the intention of merging all the shares issued by CESP by VTRM, and consequent attribution, to the other shareholders of CESP, of these new shares. (d) Approvals The corporate reorganization is not subject to the approval of any other governmental authority, either in Brazil or abroad, with the exception of the prior approval of the Economic Defense Administration Council (CADE), which was obtained on December 9, 2021, and the antitrust authorities of the European Union and Turkey. (e) Other transaction steps The next steps of the transaction, which will take place throughout 2022, will be as follows: e.1) VGE reverse incorporation - already consummated. See detail in Note 36 of Subsequent Events. e.2) Capital contribution from CPP Investments e.3) Redemption of CESP Preferred Shares Further details on these items were detailed in Note 36 - Subsequent Events. (ii) Extension of the concessions for Barra, França, Fumaça, Porto Raso and Serraria Hydroeletric Power Plants - CBA In October 1st, 2021, the subsidiary CBA was granted, in a Dispatch in the Official Gazette of the Union, an extension for 27 years of the grants for the following hydroelectric power plants: Barra, França, Fumaça, Porto Raso and Serraria. The annual amount, adjusted for the remaining period of twenty-seven years of the Grants, referring to the base date of December 2019, will be paid in favor of the reasonable tariff as Use of Public Property as shown in the table below: Power plant UHE Barra UHE França UHE Fumaça UHE Porto Raso UHE Serraria Annual value UBP adjusted for the remaining term of (jj) Reclassification of investee Acerías Paz del Rio discontinued operations the grant (27 years) R$ 3.5 R$ 2.9 R$ 3.8 R$ 1.8 R$ 1.2 - APDR - to In November 2021, the Company entered into an agreement for the sale of all the shares of the investee APDR with Trinity Capital S.A.S. and Structure S.A.S. Investment Bank. As a result, the investment was reclassified to the item Assets held for sale in the amount of R$ 100. The Company recorded a provision for loss related to the sale of the investment in the amount of R$ 827, recorded in the item Other operating income, net, as per Note 30. In accordance with CPC 31 - Non-current assets held for sale and disconti- nued operations, the assets and liabilities of the subsidiary were reclassified to a specific line in the balance sheet, as per Note 34. 124 =#126The details of the impacts of the operation are shown in the following table: Impairment of investment Carrying amount of investment (-) Estimated revenue from the sale Provision for loss Deferred income tax and social contribution Effect on the result, net (kk) Acquisition of shares of CCR S.A. (CCR) Value 927 100 (827) 281 (546) In November 2021, the Company acquired the equivalent of 5.8% of the total capital of CCR. In compliance with accounting rules, this acquisition is now recognized at fair value, as a financial instrument, in accordance with CPC 48/IFRS 9 - Financial instruments. (II) Derivative financial instruments - Put option In 2018, the Company acquired a minority interest of 15% in the combined long steel business of ArcelorMittal Brasil S.A. (AMB). In compliance with accounting rules, the investment was recognized as a financial instrument measured at fair value through profit or loss, in accordance with CPC 48/ IFRS 9 Financial instruments. As a result of the terms established in the contract, this financial instrument was reclassified to short-term in the last quarter of 2021. The change in the fair value of this operation in the year ended December 31, 2021 resulted in a gain of R$ 4,452 (December 31, 2021). In December 2020, a loss of R$ 403 was recorded under Financial result, net - Note 31. The gain recorded in 2021 is justified by the better results obtained in the long steel operation of AMB. (mm) Start of the cement factory project at Cementos Artigas S.A. (Artigas) - VCSA Artigas, a subsidiary of the subsidiary VCSA, started a project to unify its indus- trial activities in Uruguay. The initiative involves the integration of its industrial facilities, until then divided between a mill and a distribution center located in Montevideo and the main plant in the city of Minas. The project consists of the relocation of the current grinding operations and cement distribution center from the Montevideo plant to the Minas plant, resulting in a unified production line that is much more efficient and sustainable. In addition, as a result of this unification, a new vertical cement mill, a modern silo and a distribution center will be installed at the plant. Artigas will invest approximately USD 40 million in this project, which is expected to start operating in 2022. As at December 31, 2021, the total amount of investments made was USD 17.2 million (R$ 96). (nn) Effects of the pandemic caused by the novel Coronavirus (COVID-19) Given the emergence of the pandemic related to the novel Coronavirus, which has caused widespread impacts on public health and the economy of Brazil and the rest of the world, the Company has been taking preventive and risk mitiga- tion measures according to the guidelines established by national and interna- tional health authorities, aiming to minimize impacts on the health and safety of its employees, family, partners and communities, as well as the continuity of all its operations. These measures are in accordance with the laws in force in the countries in which the Company operates and its internal regulations. The extent of the impacts of COVID-19 will depend on the duration of the pandemic, possible restrictions imposed by governments, and other possible developments in the countries in which the Company and its sub- sidiaries operate. The Company and its subsidiaries constantly evaluate and implement action plans together with customers, suppliers, and other stakeholders involved, according to the current scenario and the best possible projections. 125 =#127In this scenario, the Company and its subsidiaries have been monitoring the effects on the main critical accounting estimates and judgments, as well as other balances with the potential to generate uncertainties and impacts on the financial information disclosed. 2. Presentation of the condensed consolidated interim financial statements Since the consolidated financial statements for the year ended December 31, 2021, we have not identified any additional impact to those disclosed in the annual financial statements, concerning to the following topics: (i) Reduction in the recoverable value of non-financial assets; (ii) Recoverability of deferred tax assets; (iii) Compliance with obligations contained in debt contracts; (iv) Compliance with obligations assumed with customers and suppliers; (v) Risk matrix for calculating the allowance for loan losses; (vi) Inventory loss estimate due to low turnover and change in realizable value. Additionally, the Company has a solid liquidity position. In addition, the subsidiaries VCSA and CBA have revolving credit facilities available in the amount of USD 413 million (R$ 2,245) and USD 100 million (R$ 544), res- pectively, on December 31, 2021. This position provides the Company with conditions to mitigate the impacts of this adverse scenario, even if these impacts are not fully known. Considering the analysis of the information and data mentioned above, until the time of the issuance of these interim consolidated financial statements, the Company and its subsidiaries have not identified other relevant impacts to be disclosed and do not have visibility of impacts or accounting eviden- ce arising from the pandemic caused by COVID- 19 that imply changes in accounting policies, in the main estimates established and in the critical accounting judgments mentioned above. 2.1. Basis of preparation (a) Condensed consolidated interim financial statements The consolidated financial statements have been prepared and are being presented in accordance with the accounting practices adopted in Brazil, in effect on December 31, 2021, which includes the pronouncements issued by the Accounting Pronouncements Committee (CPCs) and in accor- dance with the International Financial Reporting Standards (International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB)) and interpretation of (IFRIC) and evidence all re- levant information specific to the financial statements and are consistent with those used by Management in its management. The Company voluntarily discloses its consolidated statement of value added, according to the accounting practices adopted in Brazil, applicable to public companies and presented as an integral part of these financial statements. In accordance with international practice, this statement is pre- sented as additional information, without prejudice to the set of financial statements. The financial statements require the use of certain critical accounting esti- mates. It also requires management to exercise judgment in the process of applying the Company's accounting practices. The areas involving a higher degree of judgment or complexity or areas where assumptions and estima- tes are significant to the consolidated financial statements are disclosed in Note 4. 126 =#128(b) Approval of the financial statements The Board of Directors approved the consolidated financial statements for issue on March 29, 2022. 2.1.1. Restatement of comparative figures In accordance with IFRS 5/ CPC 31 - Non-current assets held for sale and discontinued operations, the Company reclassified the long steel operation. in Colombia from the headings of Continuing operations to Discontinued operations, consequently, the balances of income suffered changes in the amounts previously presented in the financial statements as at December 31, 2020. The effects of these reclassifications are presented below: Finance results, net Finance income Finance costs Income from derivative financial instruments Foreign exchange, net Loss before income tax and social contribution 2020 = Reclassification As originally stated of Acerías Paz Del Rio Restated 680 (20) (3,075) 96 660 (2,979) (121) (121) (1,024) (3,540) (3) (1,027) 73 (3,467) (1,474) (1,467) Income tax and social contribution Current (901) 1 Deferred (691) 2020 Loss for the continuing operations (3,066) 13 (900) (686) (3,053) As originally Reclassification of Acerías Paz stated Del Rio Restated Discontinued operations Continuing operations Profit (loss) for the discontinued operations (13) (12) Net revenue from products sold and services rendered 36,667 (1,284) 35,383 Loss for the attributable to the owners (3,065) (3,065) Cost of products sold and services rendered (29,620) 1,196 (28,424) Gross profit Loss attributable to the owners of the Company (1,636) (1,636) 7,047 (88) 6,959 Loss attributable to non- controlling interests (1,429) (1,429) Operating expenses (income) Loss for the year (3,065) (3,065) Selling (900) 11 (889) General and administrative (2,626) 123 (2,503). Weighted average number of Other operating expenses, net (2,182) (112) (2,294) shares thousands (to the owners of the Company) 18,278,789 (5,708) 22 (5,686) Basic and diluted loss per thousand shares, in reais (89.50) 18,278,789 (89.50) Operating before equity results and finance results 1,339 (66) 1,273 From continuing operations Basic and diluted losss per thousand shares, in reais (89.55) 0.70 (88.84) Results from equity investments Equity in the results of investees 727 727 727 727 From discontinued operations Basic and diluted earning (loss) per thousand shares, in reais 0.05 (0.70) (0.66) 127#1292.2. Consolidation (a) Subsidiaries Subsidiaries are fully consolidated from the date on which control is trans- ferred to the Company. Unrealized balances and gains on transactions between Company compa- nies are eliminated. Unrealized losses are also eliminated, unless the tran- saction provides evidence of a loss (impairment) of the transferred asset. In the acquisition, the accounting policies of the subsidiaries are changed when necessary, to ensure consistency with the policies adopted by the Company. The consolidated financial statements were prepared separately from the individual financial statements, issued on March 29, 2022. (b) Transactions with non-controlling interests The Company treats transactions with non-controlling shareholders as transactions with owners of the Company's assets. For purchases of non- -controlling interests, the difference between any consideration paid and the acquired portion of the carrying amount of the subsidiary's net assets is recorded in equity. Gains or losses arising from the sale of non-controlling interests are also recorded directly in equity, in the Retained earnings account. (c) Loss of control of subsidiaries When the Company ceases to have control, any retained interest in the en- tity is remeasured to its fair value, with the change in book value recognized in the income statement. The amounts previously recognized in equity value adjustments are reclassified to the result. (d) Associates and joint arrangements Joint operations are accounted for in the financial statements in order to represent the Company's contractual rights and obligations. Therefore, the assets, liabilities, revenues and expenses related to its interests in joint ope- rations are individually accounted for in its financial statements. Investments in associates and joint ventures are accounted for using the equity method and are initially recognized at cost. The Company's investments in associates and joint ventures includes goo- dwill identified on acquisition, net of any accumulated impairment loss. Dilution gains and losses on investments in associates and joint ventures are recognized in the statement of income. 2.3. Foreign currency conversion (a) Functional and presentation currency of the financial statements The functional currency of the Company is the Brazilian Real (R$ or BRL). (b) Transactions and balances Foreign currency transactions are translated into reais. When items are re- measured, the exchange rates prevailing at the dates of the transactions or the dates of valuation are used. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of income, except when defer- red in equity as net investment hedges. (c) Subsidiaries with a different functional currency The results and financial positions of all the Company entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (i) Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; = 128#130(ii) Income and expenses for each statement of income are translated at average exchange rates; (iii) All resulting exchange differences are recognized as a separate component of equity, in Carrying value adjustments. The amounts presented in the cash flow are extracted from the translated movements of the assets, liabilities and profit or loss, as detailed above. On consolidation, exchange differences arising from the translation of the net investment in foreign operations, and of borrowings and other foreign currency instruments designated as hedges of such investments, are re- cognized in equity. When a foreign operation is partially disposed of or sold, exchange differences that were recorded in equity are recognized in the statement of income as part of the gain or loss on sale. Goodwill and fair value arising from the acquisition of an entity abroad are treated as assets and liabilities of the entity abroad and converted at the closing rate. Below are the functional currencies defined for the significant foreign subsidiaries: Company Country Acerbrag S.A. Argentina St. Marys Cement Inc - St. Mary's Canada Functional currency Argentine Peso US Dollar Main activity Steel Cement Votorantim Cimentos EAA Inversiones, S.L. - VCEAA Spain Euro Nexa Resources Cajamarquilla S.A. Peru Nexa Resources Perú S.A.A. Peru Nexa Resources S.A. Luxemburgo US Dollar US Dollar US Dollar Cement Zinc Mining Holding Votorantim Cimentos International S.A. - VCI Luxemburgo US Dollar Votorantim FinCo GmbH Luxemburgo US Dollar Janssen Capital B.V. Netherlands US Dollar Holding Trading Holding 3. Changes in accounting policies and disclosures 3.1. New standards issued and amendments to the accounting standards adopted by the Company and its subsidiaries The following changes to standards issued by the International Accounting Standards Board (IASB) were adopted for the first time for the year begin- ning January 1, 2021: (i) Classification of liabilities between current and non-current: changes to IAS 1/ CPC 26 Presentation of the Financial Statements; (ii) Gains on the sale of inventories produced while the asset is not ready for use: changes to IAS 16 / CPC 27 Property, plant and equipment; (iii) Initial adoption of IFRS in subsidiaries: changes to IFRS 1/ CPC 37 Initial adoption of international accounting standards; (iv) Borrowing costs in the derecognition test of financial liabilities: changes to IFRS 9/CPC 48 Financial instruments; (v) Lease incentives: amendments to IFRS 16 / CPC 06 Leases (vi) Cost of fulfilling onerous contracts: changes to IAS 37 / CPC 25 Provision, contingent liabilities and contingent assets, and; (vii) Concessions related to COVID-19: amendments to IFRS 17 Insurance contracts. 129 =#131(viii) Reform of Interbank offered rates (IBORS): amendments to IFRS 9/ CPC 48 Financial instruments, IAS 39 / CPC 38 Financial instruments - recognition and measurement, IFRS 7 / CPC 40 Financial instruments: disclosure, IFRS 4 / CPC 11 Insurance contracts and IFRS 16 / CPC 06 Leases. The Company analyzed the amendments to the accounting standards mentioned above and did not identify any impacts on its operating and accounting policies. 3.2. New standards issued and amendments to accounting standards not yet adopted by the Company and its subsidiaries The following changes to standards issued by the International Accounting Standards Board (IASB) will be adopted for the first time in periods begin- ning after January 1, 2022: (i) Review of technical pronouncements by the Accounting Pronouncements Committee, No. 19/2021 with amendments to the Technical Pronouncements: CPC 37 (R1) / IFRS 1 - First-time Adoption of International Accounting Standards, CPC 48 / IFRS 9 - Financial Instruments, CPC 27 / IAS 16 - Fixed Assets, CPC 25/IAS 37 - Provisions, Contingent Liabilities and Contingent Assets and CPC 15 (R1) IFRS 3 Business Combinations, as a result of the annual changes related to the 2018-2020 improvement cycle; Fixed Assets - - sales before intended use; Onerous Contract - contract fulfillment costs; and References to the Conceptual Framework. The Company analyzed the amendments to the accounting standards mentioned above and did not identify any impacts on its operating and accounting policies to be adopted retrospectively or at the beginning of the year 2022. 4. Critical accounting estimates and judgments Based on assumptions, the Company and its subsidiaries make estimates regarding the future. By definition, accounting estimates and judgments are continuously reviewed and are based on historical experience and other factors, including expectations of future events, which are considered re- asonable for the circumstances. Revisions to the estimates are recognized prospectively. The accounting estimates will rarely be the same as the actual results. Estimates and assumptions that present a significant risk and are likely to cause a material adjustment to the carrying amounts of assets and liabi- lities for the next fiscal year are described in the respective notes below: (i) Fair value of financial instruments and derivatives (Note 6.1.1); (ii) Trade receivables (Note 11); (iii) Electric power futures contracts (Note 16); (iv) Property, plant and equipment (Note 18); (v) Intangible assets (Note 19); (vi) Lease liabilities (Nota 21); (vii) Current and deferred income and social contribution taxes (Note 23); (viii) Provision (Note 24); (ix) Pension plan (Note 26). = 130#1325. Social and environmental risk management 6. Financial risk management The Company, through its subsidiaries and associates, operates in various segments and consequently, these activities are subject to several Brazilian and international environmental laws, regulations, treaties and conventions, including those that regulate the discharge of materials into the envi- ronment, which establish the removal and cleaning of the contaminated environment, and those relating to environmental protection. Violations of the environmental regulations in force expose the violator(s) to significant fines and monetary penalties, and may require technical measures or in- vestments to ensure compliance with the mandatory emissions levels. The Company and its subsidiaries carry out periodic studies to identify any potentially affected areas and records, based on the best estimates of costs, and the amounts expected to be disbursed for the investigation, treatment and cleaning of the potentially affected areas. The Company and its subsidiaries believe they are in compliance with all of the applicable en- vironmental standards in the countries in which they operate. 6.1. Financial risk factors The activities of the Company and its subsidiaries expose them to a variety of financial risks, namely: (a) market risk (including currency, commodity price and interest rate risk), (b) credit risk and (c) liquidity risk. A significant portion of the products sold by the Company and its subsidia- ries, such as aluminum, nickel and zinc are commodities, with prices pegged to international indexes and denominated in US Dollars. Their costs, howe- ver, are mainly denominated in reais, and therefore, there is a mismatch of currencies between revenues and costs. Additionally, the Company and its subsidiaries have debts linked to different indexes and currencies, which may have an impact on their cash flow. In order to mitigate the various effects of each market risk factor, the Company and its subsidiaries follow a Market Risk Management Policy, approved by the Finance Committee, with the objective of establishing go- vernance and the overall guidelines of the process of managing these risks, as well as the metrics for their measurement and monitoring. The financial risk management process aims to protect the cash flow and its operational (revenues and costs) and financial (financial assets and lia- bilities) components against adverse market events, such as fluctuations in the prices of currencies, interest rates and commodity prices, and against adverse credit events. In addition, it aims to preserve liquidity. The following financial instruments may be taken out in order to mitigate and manage risk: conventional swaps, call options, put options, collars, currency futures contracts, interest or commodities and non-deliverable 131 =#133forward contracts. Strategies that include simultaneous purchases and sa- les of options are authorized only when they do not result in a net short po- sition in volatility of the underlying asset. The Company and its subsidiaries do not carry out transactions involving financial instruments for speculative purposes. (a) Market risk (i) Foreign exchange risk The Company and its subsidiaries have certain investments in foreign ope- rations, the net assets of which are exposed to foreign exchange risk. The foreign exchange exposure arising from the Company's and its subsidiaries' participation in foreign operations is mainly hedged by borrowing in the same currency as these investments, classified as net investment hedges. Presented below are the accounting balances of assets and liabilities in- dexed to a foreign currency at the closing date of the balance sheets: (ii) Hedge of net investments in foreign operations Hedge of net investment in operations abroad is accounted for similarly to cash flow hedge. Any gain or loss on the hedging instrument related to the effective portion of the hedge is recognized in equity, under Carrying value adjustments. The gain or loss related to the ineffective portion is immediately recognized in profit or loss. Accumulated gains and losses in shareholders' equity are in- cluded in profit or loss for the period when the investment abroad is made or sold. The investments presented in the following table were designated as hed- ged objects and the debt portion of the Company and its subsidiaries CBA, Votorantim Cimentos International S.A. (VCI) and St. Marys, denominated in euros and dollars. Investment Note 2021 2020 Nexa Resources Cajamarquilla S.A. St. Marys 510 CBA 2,790 St. Marys 3,300 9 9,569 7,992 10 1,612 1,209 239 2,337 382 1,875 Investment 2021 Debt 499 2,790 3,289 2020 Debt 107 13,864 105 11,563 Nexa Resources Cajamarquilla S.A. St. Marys 822 CBA 747 1,245 St. Marys 1,245 Votorantim Cimentos EAA Inversiones, S.L. (i) Votorantim Cimentos International 2,598 S.A. (i) 2,598 4,665 4,590 Assets denominated in foreign currency Cash and cash equivalents Financial investments Derivative financial instruments Trade receivables Related parties Liabilities denominated in foreign currency Borrowing (i) 20 Derivative financial instruments 20,527 314 18,755 1,173 Lease liabilities 1,409 Confirming payables 2,922 634 1,840 Trade payables 3,524 2,917 Deferred revenue - silver streaming 822 29,518 863 26,182 Net exposure (15,654) (14,619) (i) Funding costs are not considered in these amounts. 132 (i) After the hedge relationship was rebalanced on December 31, 2020, the debts in EUR held by VCI were fully settled and the hedge accounting in question was ended. The Company and its subsidiaries document and evaluate the effectiveness of the investment hedge operations prospectively, as required by CPC 48/ IFRS 9 Financial instruments. =#134(iii) Cash flow and fair value interest rate risk The interest rate risk arises from the fluctuations of each of the main indexes of interest rates from borrowing and from financial investments, which have an impact on the payments and receipts of the Company and its subsidiaries. Borrowing at fixed rates exposes the Company and its subsi- diaries to fair value interest rate risk. (iv) Commodity price risk The Financial Policy of the Company's operating subsidiaries establishes guidelines to mitigate the risk of fluctuations in commodity prices that have an impact on the cash flow of the Company's operating subsidiaries. The exposure to each commodity price considers the monthly projections of production, purchases of inputs and flows of maturities of the related hedges. Hedge transactions are classified into the following categories: Fixed-price commercial transactions - hedge transactions that switch, from fixed to floating, the price contracted in commercial transactions with customers interested in purchasing products at a fixed price; Hedges for quotation periods - hedges that set a price for the different quotation periods between the purchases of certain inputs (metal concen- trate) and the sale of products arising from the processing of these inputs; Hedges for costs of inputs - intended to ensure protection against vola- tility in the prices or costs of its operating subsidiaries for commodities such as oil and natural gas; Hedges for operating margin - intended to set the operating margin for a portion of the production of certain operating subsidiaries. (b) Credit risk Derivative financial instruments and financial investments create exposure to credit risk of counterparties and issuers. The Company and its subsi- diaries adopt a policy of working with issuers which have, at a minimum, been assessed by two of the following three rating agencies: Fitch Ratings, Moody's or S&P Global Ratings. The minimum rating required for the coun- terparties is A (Brazilian scale) or BBB- (international scale), or equivalent. For financial assets where issuers do not meet the minimum credit risk ratings, criteria proposed by the Finance Committee are applied as an alter- native, criteria approved by the Board of Directors. The credit quality of financial assets is disclosed in Note 8. The ratings dis- closed in this Note always represent the most conservative ratings of the agencies in question. The pre-settlement risk methodology is used to assess counterparty risk on derivatives transactions, determining (via Monte Carlo simulations) the likelihood of a counterparty not honoring the financial commitments de- fined by the contract. The use of this methodology is described in the VSA Financial Policy. (c) Liquidity risk The following table analyzes the financial liabilities of the Company and its subsidiaries, by maturity, corresponding to the period remaining from the balance sheet date up to the contractual maturity date. The amounts disclosed in the table represent the undiscounted contractual cash flows, and these amounts may not be reconciled with the amounts disclosed in the balance sheet. 133 =#135From From From Up to one to three five From one three to five to ten year years years years ten years Total At December 31, 2021 Borrowing (i) 1,826 2,331 10,400 14,869. 6,235 35,661 Derivative financial instruments 556 272 123 Lease liabilities 371 235 277 102 637 Confirming payables 3,405 Trade payables 6,914 Dividends payable 1,624 29 1,082 31 1,551 3,405 6,914 1,624 Related parties 75 Use of public assets 128 181 326 829 14,824 3,094 11,126 16,437 75 1,960 3,424 8,255 53,736 6.1.1. Derivatives contracted Accounting policy Initially, derivatives are recognized at fair value on the date of their contrac- ting and are subsequently re-measured at their fair value. The fair value of financial instruments that are not traded on active markets is determined using valuation techniques. The Company and its subsidiaries use their judgment to choose between different methods and to define assumptions that are mainly based on the market conditions existing at the balance sheet date. At December 31, 2020 Borrowing 2,258 1,869 11,654 13,418 5,998 35,197 Derivative financial instruments 514 334 635 Lease liabilities 253 208 169 1,269 173 Confirming payables 2,380 Trade payables 5,404 171 2,923 55 858 2,380 5,404 Dividends payable 44 44 Related parties 11 Use of public assets 100 177 312 828 11 1,213 2,630 10,953 2,599 12,770 15,688 7,437 49,447 (i) For borrowing balances, financial charges are projected until the final maturity of the contracts. These figures do not consider an adjustment to the fair value of the opera- tions contracted in Law No. 4131/1962. The method for recognizing the resulting gain or loss depends on whether the derivative is designated or not as a hedge instrument in cases of adop- tion of hedge accounting. This being the case, the method depends on the nature of the item being hedged. The Company and its subsidiaries adopt hedge accounting and designate certain derivatives as: (i) Cash flow hedge With a view to ensuring a fixed operating margin in reais for a portion of the production of the metal businesses, the subsidiaries enter into commodity forward contracts (zinc, aluminum and nickel) on sales of certain commodi- ties combined with the sale of US Dollar forward contracts. There is also the quotation period hedge, which seeks to equalize the periods between the purchase of concentrate and the sale of the final product of the non-inte- grated plants, in order to mitigate exposures. These subsidiaries adopt he- dge accounting for the derivative instruments entered into for this purpose. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in equity within Carrying value adjustments. The gain or loss relating to the ineffective por- tion is recognized as Operating income (expenses). The amounts recognized 134 =#136in equity are recorded in the statement of income (in the same line item affected by the transaction originally hedged) upon realization of the hedged exports and/or sales referenced to London Metal Exchange (LME) prices. (ii) Fair value hedges With the objective of maintaining the flow of the metal businesses' opera- ting revenue pegged to LME prices, the subsidiaries enter into hedging tran- sactions under which they convert sales at fixed prices to floating prices in commercial transactions with customers interested in purchasing products at a fixed price. Changes in the fair values of derivatives that are designated derivatives are recognized in the income for the year. (a) Effects of derivative financial instruments on the balance sheet and cash flow The following are the derivative financial instruments and the objects pro- tected by them: = Principal Value 2020 Net revenue Total (net Programs 2021 2020 As per unit between assets and liabilities) Inventory Hedges for sale of zinc at a fixed price Zinc forward 8,787 15,695 ton 10 10 2021 Changes in fair value 2021 Fair value by maturity from products sold and services rendered Cost of products sold and services Other operating Other Finance comprehensive rendered income, net results, net income Gain (loss) Realized Total (net between assets and liabilities) 2021 2022 2023 2024+ 32 32 Hedges for mismatches of quotational period Zinc forward 215,809 204,394 ton 11 6 11 6 54 54 (211) (211) 10 10 Hedges for sale of zinc at a fixed price Zinc forward Operating margin hedging Aluminum forward Collars USD forward 3 BRL 57,200 203,130 ton (350) (859) 120 5 USD millions 337 USD millions 52 15 (298) (844) Foreign exchange risk Turkish Lira Term (EUR/TRY) 1 EUR millions (1) Turkish Lira Term (USD/TRY) 4 USD millions (2) (3) 135 1 2 3 23 19 19 23 19 19 MM 3 (70) (57) (57) 3 (70) (57) (57) 193 (798) (218) (217) (1) (1) (63) 3 3 129 (797) (216) (215)#137Principal Value Total (net 2021 2020 As per unit between assets and liabilities) Inventory 2020 Net revenue from products sold and services rendered Programs Interest rates risk LIBOR floating rate vs. CDI floating rate swaps 200 225 USD millions 190 IPCA floating rate vs. CDI floating rate swaps 1,236 760 BRL 37 USD vs. CDI floating rate swaps 100 50 USD millions 15 CDI floating rate swaps vs.USD floating swaps 1 BRL (690) IPCA floating rate vs. USD floating rate swaps 160 160 BRL (52) BRL vs. USD rate swaps 477 BRL (2) Swap floating rate vs. CDI fixed rate 2 BRL (502) Hedge of operational contracts USD forward 50 USD millions IPCA floating rate vs. USD floating rate swaps 823 823 USD millions 25 25 (757) 2021 Changes in fair value 2021 = Fair value by maturity Cost of products sold and services Other Other operating Finance comprehensive rendered income, net results, net income Gain (loss) Realized Total (net between assets and liabilities) 2021 2022 2023 2024+ 77 (39) 4 688 (55) 52 (41) ༩མྦྷ ༩༔ (12) 71 196 (85) (59) 340 12 (14) གའ (62) (55) (42) 145 31 (48) (36) (31) 145 (3) 1 12 (67) (6) (7) (7) (49) (40) (3) (54) 740 40 144 (201) (158) (79) 581 4 4 (19) (25) (19) (15) (25) 4 (19) 21 21 55 (44) (44) 6 (790) (211) 42 (66) 847 (800) (129) (454) (137) (75) 537 In December 31, 2021, derivative transactions net of taxes recognized in Equity valuation adjustment totaled R$ 719. 136#138(b) Derivative financial instruments - Put-option In 2018, the Company acquired a minority interest of 15% in the combined long steel business of ArcelorMittal Brasil S.A. (AMB). In compliance with accounting rules, the investment was recognized as a financial instrument measured at fair value through profit or loss, in accordance with CPC 48/ IFRS 9 Financial instruments. As a result of the terms established in the contract, this financial instrument was reclassified to short-term in the last quarter of 2021. The change in the fair value of this operation in the year ended December 31, 2021 resulted in a gain of R$ 4,452 (December 31, 2021). December 2020, loss of R$ 403 was recorded under Financial result, net Note 31. The gain recorded in 2021 is justified by the better results obtained in the long steel operation of AMB. 6.1.2. Estimated fair value The main financial assets and liabilities are described below, as well as the assumptions for their valuation: Financial assets - considering the nature and terms, the amounts recor- ded are close to the realizable values. The Company and its subsidiaries disclose the fair value measurements by the following hierarchy: Level 1 - quoted prices (not adjusted) in active markets for identical assets and liabilities; Level 2 - information, in addition to quoted prices, included in level 1 that are adopted by the market for the asset or liability, either directly (as prices) or indirectly (derived from prices), and; Level 3 - inserts for assets or liabilities that are not based on data adopted by the market (that is, unobservable insertions). As at December 31, 2021, financial assets measured at fair value and fi- nancial liabilities disclosed at fair value were classified in levels 1 and 2 of hierarchy, as given below: Fair value measured based on Prices quoted supported by 2021 Valuation in an active market Note (Level 1) observable prices (Level 2) Fair value = Financial liabilities - are subject to interest at the usual market rates. The market value was calculated based on the present value of the future cash disbursement, using interest rates currently available for issuing debts with similar maturities and terms. Assets Cash and cash equivalents Financial investments 9 10 8,636 844 Derivative financial instruments (i) Derivative financial instruments - put option 6.1.1 (a) 5,044 2,288 953 13,680 3,132 953 4,704 4,704 Financial instruments - shares 13 23 2,778 2,801 9,503 15,767 25,270 Electric power future contracts - The fair value of these financial ins- truments is estimated based, in part, on price quotes published in active markets, insofar as such observable market data exist, and, in part, by the use of valuation techniques, which consider: (i) prices established in the pur- chase and sale operations; (ii) supply risk margin and (iii) projected market price in the availability period. Whenever the fair value at initial recognition for these contracts differs from the transaction price, a gain or loss of fair value is recognized in Other operating income (expenses), net. Liabilities 137 Borrowing (i) Derivative financial instruments (i) To rent 20 6.1.1 (a) 21 16,326 10,156 26,482 1,082 1,082 1,551 1,551 Confirming payables 3,405 3,405 16,326 16,194 32,520#139Fair value measured 12/31/2020 based on Prices quoted in Valuation supported by an active market Note (Level 1) observable prices (Level 2) Fair value Assets Cash and cash equivalents 9 4,418 5,365 Financial investments 10 1,279 4,419 Derivative financial instruments (i) 6.1.1 (a) 2,166 9,783 5,698 2,166 Derivative financial instruments - put option Financial instruments - shares 13 252 2,590 252 2,590 5,697 14,792 20,489 Liabilities Borrowing (i) 20 16,633 13,377 30,010 Derivative financial instruments (i) To rent 6.1.1 (a) 2,923 2,923 21 858 858 Confirming payables 2,380 2,380 19,538 36,171 16,633 (i) The fair value of these financial instruments takes into account the credit risk of the Company and its subsidiaries, and the value of the change in the fair value of the fi- nancial liability that is attributable to changes in credit risk is recorded in equity in other comprehensive income. If the classification of credit risk in other comprehensive income creates or increases the accounting mismatch in the result, the entity must present all gains or losses in the income for the year. The accumulated amount of changes in credit risk remains in other comprehensive income until the settlement of the financial instrument, when they are reclassified to retained earnings, without affecting the income. 6.1.3. Sensitivity analysis The main risk factors affecting the pricing of cash and cash equivalents, financial investments, loans and financing and derivative financial instru- ments are exposed to the fluctuation in the US Dollar, Euro, Turkish Lira, New Peruvian Sun, Argentine Peso and Bolivian interest rates, CDI, IPCA, TJLP, LIBOR, US Dollar coupon, commodity prices and electricity purcha- se and sale contracts. The scenarios for these factors are prepared using both market sources and specialized sources of information, in line with the Company's governance. The scenarios as at December 31, 2021 are described below: Scenario I - Considers a shock to the market curves and quotations at December 31, 2021, according to the base scenario defined by manage- ment as at March 31, 2022; - Scenario II Considers a shock of + or - 25% in the market curves at December 31, 2021; Scenario III - Considers a shock of + or - 50% in the market curves at December 31, 2021. 138 =#140Cash and cash equivalents and financial Impacts on profit (loss) Scenario I Scenarios II & III Scenario I Impacts on comprehensive income Scenarios II & III = Borrowing and Changes investments related parties Derivative financial from Risk factors Foreign exchange rates (i) (i) instruments/As per unit 2021 Results of scenario I -25% -50% +25% +50% Results of scenario I -25% -50% +25% +50% USD 9,521 18,606 2,301 USD millions -1.4% 33 572 1,145 (572) (1,145) 138 EUR 752 1,174 0.1% (12) (25) 12 25 2,384 118 4,768 (2,384) (4,768) 236 (118) (236) MAD 227 2.1% 5 (57) (113) 57 113 BOB 58 635 -3.1% 18 144 289 (144) (289) TRY 46 17 4 USD millions -7.0% (1) (15) (37) 12 22 CAD 27 113 -0.5% 23 46 (23) (46) (1) (3) 1 3 UYU 38 121 -1.4% 1 21 42 (21) (42) TND 229 -2.2% (5) (57) (114) 57 114 ARS 136 -12.4% (17) (34) (68) 34 68 NAD 8 -3.3% (2) (4) 2 4 PEN 139 10 -2.4% (3) (31) (62) 31 62 (2) (3) 2 3 11,180 20,677 2,305 29 423 840 (426) (855) 140 2,628 5,257 (2,628) (5,257) Interest rates BRL - CDI 5,544 BRL-IPCA 2,063 2,307 2,910 6,726 BRL 191 bps 139 228 529 (170) (295) 5 (2) BRL -456 bps 105 (73) (133) 86 187 BRL- TJLP 128 44 bps 2 3 (2) (3) USD - LIBOR 1,775 Dollar coupon 5,544 6,273 1,176 USD millions 1,326 USD millions 12,137 2 bps 6 (11) (23) 11 23 17 bps 63 (198) (395) 198 395 (1,088) 122 245 (122) 313 (52) (19) 123 307 (1088) 124 250 (124) (245) (249) Price of commodities Zinc Aluminium 224,596 57,200 281,796 ton ton -18.7% 7.8% 187 132 265 (132) (265) (37) (26) (52) 26 52 (32) 158 316 (158) (316) 187 132 265 (132) (265) (69) 132 264 (132) (264) Firm Commitment - electric energy Purchase and sale contracts - fair value (44) (44) 1 1 1 (i) The balances presented do not reconcile with the explanatory notes, since the analysis performed covered all the most significant currencies and the interest rates include only the principal amount. 139#1417. Financial instruments by category Accounting policy The Company and its subsidiaries classify their financial instruments de- pending on the purpose for which the financial instruments were acquired. Management determines the classification of financial instruments upon initial recognition, in the following categories: (a) Financial instruments at fair value through profit or loss These are financial assets held for active and frequent trading. These assets are measured at their fair value, and the changes are recognized in the sta- tement of income for the year. (b) Financial instruments at fair value through other comprehensive income These are financial instruments that meet the criteria of contractual terms, give rise to cash flows that are exclusively the payment of principal and interest and are maintained in a business model, the objective of which is achieved both by obtaining contractual cash flows and by sale of financial assets. The instruments in this classification are measured at fair value through other comprehensive income. (c) Financial instruments at amortized cost These are financial instruments maintained in a business model whose purpose is to obtain contractual cash flows and their contractual terms give rise to cash flows that are exclusively the payment of principal and interest. The instruments in this classification are measured at amortized cost. (d) Impairment of financial assets measured at cost This is measured as the difference between the book value of the assets. and the present value of the estimated future cash flows (excluding future credit losses that were not incurred), discounted at the current interest rate of financial assets. The book value of the asset is reduced and the amount of the loss is recognized in the statement of income. If, in a subsequent period, the impairment loss decreases and the impair- ment can be objectively related to an event occurring after recognition of the impairment (such as an improvement in the debtor's credit rating), the reversal of the loss will be recognized in the statement of the results. Assets At amortized cost Trade receivables Related parties Trade receivables Note 2021 2020 15 3,679 225 3,904 2,352 196 2,548 Fair value through profit or loss Cash and cash equivalents (i) 9 13,680 9,783 Financial investments 10 3,132 5,698 857 Derivative financial instruments 6.1.1 (a) 847 1,154 Derivative financial instruments - put option Electric power futures contracts 6.1.1 (b) 4,704 3,807 26,170 252 58 17,802 Fair value through other comprehensive income Financial instruments - shares Derivative financial instruments 13 2,801 2,590 6.1.1 (a) 106 1,012 2,907 3,602 = 140#142Note 2021 2020 8. Credit quality of financial assets Liabilities At amortized cost Borrowing 20 (a) 23,337 23,676 Trade payables 6,914 Lease liabilities 21 (b) 1,551 5,404 858 Related parties 15 75 Confirming payables 22 3,405 11 2,380 The ratings resulting from local and global ratings were extracted from rating agencies (S&P Global Ratings, Moody's and Fitch Ratings). For presentation, the nomenclature standard of S&P Global Ratings and Fitch Ratings and the classification as established in the Financial Policies were considered. Use of public assets 25 1,867 1,497 2021 2020 37,149 33,826 Fair value through profit or loss Local Global Local Global rating rating Total rating rating Total Borrowing 20 (a) 1,667 1,389 Cash and cash equivalents Derivative financial instruments 6.1.1 (a) 556 511 AAA 5,061 5,061 1,575 1,575 Electric power futures contracts 3,863 285 AA+ 165 165 309 309 6,086 2,185 AA 680 680 158 158 AA- 140 140 46 136 182 Fair value through other comprehensive income Derivative financial instruments A+ 200 3,396 3,596 2,092 2,092 6.1.1 (a) 526 2,412 A 137 2,309 2,446 2,216 2,216 526 2,412 A- 1,105 1,105 1,790 1,790 (i) In practice, fair value and amortized cost are equivalent, considering, by definition, the characteristics of cash equivalents. BBB+ 219 219 687 687 BBB 27 27 300 300 BBB- 37 37 292 292 BB 15 15 13 13 BB- 34 34 10 10 B 61 61 60 60 B- 1 1 CCC+ 2 2 CCC 30 30 141 CCC- 1 1 Unrated (i) 14 79 93 66 66 6,257 7,423 13,680 2,088 7,695 9,783 =#1432021 2020 Local Global rating rating Local Global Total rating rating Total Financial investments AAA 1,397 1,397 3,639 AA+ 10 10 26 3,639 26 AA 227 227 317 AA- 487 317 487 A+ 20 29 49 A 22 A- 70 22 22 131 131 70 B 3 3 CCC+ 92 92 4 CCC- 18 18 Unrated (ii) 1,293 1,293 1,045 1,045 1,634 Derivative financial instruments AAA AA- AA A+ A- B 1,498 3,132 4,489 1,209 5,698 9. Cash and cash equivalentes Accounting policy Cash and cash equivalents include cash, bank deposits and other highly liquid short-term investments whose original maturities are less than three months, and which are readily convertible into a known amount of cash and subject to an insignificant risk of change in value. (a) Breakdown Cash and cash equivalents in local currency include deposits in current bank accounts and government securities (overnight operations) or financial institutions, indexed to the interbank deposit rate. Foreign currency cash equivalents are mainly composed of financial instruments in local currency of the company and its investees. 756 756 1,688 323 1,688 2021 2020 323 Local currency 9 9 Cash and banks 26 27 144 144 42 42 10 145 10 Bank Deposit Certificates - CDBs 2,437 798 145 Repurchase agreements - public securities 1,424 955 2 2 Repurchase agreements - private securities 11 765 188 953 2,011 155 2,166 Financial Treasury Bills - LFTs 224 4,111 1,791 Foreign currency 2,801 2,590 2,590 Cash and banks Time deposits 11,457 9,109 20,566 11,178 9,059 20,237 6,962 3,409 2,607 4,583 9,569 7,992 13,680 9,783 Financial instruments - shares AAA 2,801 (i) Refers to values invested in offshore banks which are not rated by any ratings agency. (ii) Refer to amounts invested in liquid assets traded abroad that are not classified by rating agencies. 142 =#14410. Financial investments (a) Breakdown 2021 2020 Fair value through profit or loss Accounting policy Financial investments have, for the most part, immediate liquidity, however, they are classified as financial investments based on the original maturities, considering the expected destination of the funds. Investments in national currency comprise government bonds or financial institutions, indexed to the interbank deposit rate. Investments denominated in foreign currency are mainly composed of fixed income financial instruments in local currency (time deposits). There are also investments that have immediate liquidity considering the expected allocation of funds by the Investment Policy. Such investments comprise sovereign bonds and ETFs (Exchange Traded Funds) with low risk concen- tration in specific assets, following restrictions defined in the Investment Policy to safeguard liquidity and mitigate risk of capital loss. Local currency Bank Deposit Certificates - CDBs Financial Treasury Bills - LFTs Financial bills - Private securities 183 2,583 608 1,169. 290 Repurchase agreements - Public securities 236 110 Investment fund quotas 493 337 1,520 4,489 1,400 1,046 212 163 1,612 1,209 3,132 5,698 Foreign currency Assets traded on the market (i) Time deposits Current Non-current 3,132 5,678 20 3,132 5,698 143 (i) Balance refers to assets traded on the market, being investments with a low concen- tration of risk in specific assets. =#14511. Trade receivables Accounting policy Trade receivables correspond to the amounts referring to the sale of goods or provision of services in the normal course of the activities of the Company and its subsidiaries. They are initially recognized at fair value and subsequently measured at amortized cost using the effective interest rate method less the estimated loss on allowance for loan losses. Accounts receivable from customers in the foreign market are updated based on the exchange rates in effect on the balance sheet date. (a) Breakdown U.S. dollar Euro Colombian peso (b) Breakdown by currency 2021 2020 Brazilian real 1,581 1,334 1,489 1,213 181 309 131 97 71 66 62 61 83 55 54 101 3,679 3,209 Turkish lira Uruguayan peso Moroccan dirham Argentine peso Other (c) Changes in estimated loss for doubtful accounts Opening balance Additions, net Receivables written off as uncollectible (i) 2021 2020 Effect of subsidiaries excluded from consolidation Trade receivables - Brazil 1,445 1,475 Trade receivables - foreign customers Foreign exchange variations 2,349 1,892 Related parties Closing balance 39 64 3,833 3,431 2021 2020 (222) (191) (44) 69 21 (5) (2) (6) (154) (222) (i) (i) The debits on the estimated loss account with doubtful accounts are generally writ- ten off when there is no expectation of recovery of funds. Allowance for doubtful accounts (154) (222) 3,679 3,209 (d) Aging of trade receivables 144 Current Up to three months past due Three to six months past due Over six months past due 2021 2020 3,473 2,945 137 166 20 14 203 306 3,833 3,431 =#14612. Inventory (a) Breakdown Accounting policy Presented at the lower of cost and net realizable value. The cost is de- termined using the weighted average cost method. The costs of finished products and products in preparation comprise raw materials, direct labor and other direct and indirect production costs (based on normal operatio- nal capacity). The raw materials from biological assets (e.g: trees from a plantation, plants, fruit trees, cattle, etc.) are measured at fair value, less selling expenses at the point of harvest, when they are transferred from non-active assets current to the inventory group. The subsidiaries, at least once a year, carry out the physical inventory of the goods included in their inventory. Inventory adjustments are recorded under Cost of goods sold and services provided. The provision for inventory losses refers substantially to obsolete and low turnover materials. Finished products Semi-finished products Raw materials Auxiliary materials and consumables Imports in transit Other Provision for inventory losses (b) Changes in the estimate of inventory losses Balance at the beginning of the year Addition Disposal Reversal Semi- Auxiliary Finished finished Raw materials and products products materials consumables 2021 2020 1,609 949 2,021 1,705 1,610 858 1,588 1,249 402 319 415 114 (478) (470) 7,167 4,724 2021 2020 Other Total Total (17) (57) (17) (51) (103) (46) (246) (158) (133) (470) (393) (34) (392) (229) 12 17 17 46 52 74 56 142 2 326 219 Effect of subsidiaries included in consolidation 3 11 26 (15) 25 Exchange variation (1) (6) (6) (13) (67) Balance at the end of the year (13) (64) (7) (225) (169) (478) (470) 145#14713. Financial Instruments - Shares 14. Taxes recoverable Accounting policy Uses the average share price quote for the last ninety days of the closing date. The value of financial instruments refers, substantially, to the portion of the Company's shares held by Suzano S.A. and CCR S.A.. Accounting policy The recoverable taxes are held in assets mainly for the purpose of recog- nizing in the balance sheet of the entity the book values that will be the object of future recovery. 2021 2020 Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL) 2,343 1,725 Suzano CCR Tinka 2021 2020 Total Suzano Social Contribution on Revenue (COFINS) 892 1,561 Balance at beginning of period 2,590 2,590 2,749 State Value-added Tax on Sales and Services (ICMS) Value-added Tax (VAT) (foreign companies) 661 719 263 252 Acquisition (i) Change in fair value 141 1,348 78 37 1,385 Social Integration Program (PIS) 233 368 Realization of fair value (999) (17) 219 1,079 (1,016) State Value Added Tax on property, plant and equipment (ICMS) 80 68 Sale of shares (377) Balance at the end of the period 1,355 1,426 20 (377) (1,238) 2,801 Withholding Income Tax (IRRF) 43 59 2,590 Excise Tax (IPI) 43 32 Social Security Credit 20 20 (i) Refers to the acquisition of shares in CCR, as described in Note 1.1 (kk). Service Tax (ISS) Other 2 11 162 184 4,742 4,999 146 Current Non-current 2,709 2,033 2,033 2,966 4,742 4,999 =#14815. Related parties Liabilities Parent company Trade payables 2021 Dividends payable 2020 2021 2020 Non-current liabilities 2021 2020 Assets Trade receivables Dividends receivable Accounting policy Related parties are individuals or legal entities that are related to the entity that reports the financial statements. Hejoassu Administração S.A. Related companies and joint ventures Superior Materials Holdings, LLC Cementos Avellaneda S.A. Others 1520 11 1 Non-current assets 8 6 75 11 8 18 1,520 75 11 2021 2020 2021 2020 2021 2020 Related companies and joint ventures Non-controlling interests Current 104 44 8 18 1,624 44 Non-current 75 11 Cementos Avellaneda S.A. 3 3 8 18 1,624 44 75 11 Banco Votorantim S.A. 298 36 Finance income Citrosuco S.A. Agroindústria 80 126 Profit and loss Sales (purchases), net (expenses), net Citrosuco GmbH 72 67 2021 2020 2021 2020 Supermix Concreto S.A. 24 22 VTRM Energia Participações S.A 2 3 7 140 47 Related companies and joint ventures Superior Building Materials LL 24 Cementos Especiales De Las Islas, S.A. 39 22 Outros 10 12 26 3 Cementos Granadilla S.L. 26 20 39 64 305 176 225 196 Citrosuco S.A. Agroindústria 29 20 Current 39 64 305 176 Midway Group, LLC 45 32 Non-current 225 196 Supermix Concreto S.A. 315 235 39 64 305 176 225 196 Superior Materials Holdings, LLC 79 112 Others 55 21 (15) (4) 588 462 (15) (4) 147 =#14916. Electric power future contracts The values quoted above have the following composition: The subsidiary Votorantim Comercializadora de Energia Ltda. (Votener) Centralizes energy purchase and sale transactions to meet the demands of Votorantim companies. A portion of these transactions takes the form of contracts that have been entered into and continue to be carried out for the purpose of receiving the energy for Votener's own use or delivering self-produced energy, in accordance with the productive demands of the Company's subsidiaries and, therefore, meets the definition of a financial instrument. Another part of these transactions refers to energy purchases and sales that are not used in the production process of Votorantim companies and are traded in an active market, therefore, it meets the definition of a fi- nancial instruments, due to the fact that transactions are settled in energy, and promptly convertible into cash. Such contracts are accounted for as derivatives under IFRS 9 / CPC 48 and are recognized in the balance sheet of their subsidiaries at fair value, on the date the derivative is entered into, and are revalued at fair value on the balance sheet date. The operations carried out by the indirect subsidiary Votener until 2023 in the Free Contracting Environment (ACL) were recognized at their fair value on the closing date of each operation. In 2021, the realization of the fair value of these operations, resulting from the physical settlement of the energy pur- chase and sale contracts, resulted in a gain of R$ 11 (R$ 83 in loss in 2020). These amounts were accounted for under Other operating income (expenses), net. The A-0/2014 contracts, which were traded in the Regulated Contracting Environment (ACR), were fully settled in December 2019. Realization Recognition ACL Total Votorantim Cimentos Votorantim CBA (i) Energia Total 2021 2020 (2) 28 (11) 15 15 105 156 156 156 (159) (2) 184 (11) 171 171 (54) The table below shows the composition of equity balances: Assets Current Non-current ACL Total CBA Votorantim VGE Cimentos 2021 2020 845 2,962 3,807 845 2,962 49 9 3,807 58 Liabilities Current Non-current (11) (767) (22) (800) (75) (24) (2,993) (46) (3,063) (210) (35) (3,760) (68) (3,863) (285) 148 =#15017. Investments (a) Breakdown Information on December 31, 2021 Equivalence result Balance Net income (loss) Equity for the semester 2021 2020 2021 2020 Investments accounted for under the equity method - Associates Cementos Avellaneda S.A. Alunorte Alumina do Norte S.A. 1,380 247 2 (28) 825 717 3,775 430 13 (1) 115 107 IMIX Empreendimentos Imobiliários Ltda. 14 6 1 2 3 3 Mineração Rio do Norte S.A. 900 (6) (1) (2) 90 92 Supermix Concreto S.A. 283 73 18 5 71 63 Jaguatirica Empreendimento Imobiliário SPE S.A 226 7 11 6 112 Cementos Especiales de las Islas S.A. Others 239 54 27 20 120 113 (13) 100 92 Accounting policy Investments in affiliates, subsidiaries and joint ventures are accounted for using the equity method of accounting as of the date they become their jointly controlled joint ventures and subsidiaries. Affiliates are those entities in which the Company, directly or indirectly, has significant influence, but not control or joint control over financial and operating policies. In order to be classified as a jointly controlled entity, there must be a contractual agreement that allows the Company to share control of the entity and gives the Company the right to the net assets of the jointly controlled entity, not the right to its specific assets and liabilities. The Company also recognizes its assets in accordance with the venturer's participation in the assets, liabilities, revenues and expenses of the control- led entity on a proportional basis. This implies recognizing the venturer's share of the assets, liabilities, income and expenses of the joint ventures by adding such amounts to its own assets, liabilities, revenues and expenses by the straight-line method, and including such amounts in corresponding to the balance sheet and income statement of the same nature. (i) Impairment of investments For the calculation of the recoverable amounts of the investments, the Company and its subsidiaries use criteria similar to those used to test goo- dwill impairment. Joint ventures 149 Citrosuco GmbH 5,973 368 135 249 4,043 Banco Votorantim S.A. 13,020 672 817 719 3,628 6,510 5,871 Citrosuco S.A. Agroindústria (1,928) (906) (469) (602) (713) (357) Juntos Somos Mais Fidelização S.A. 88 (32) (15) (4) 40 VTRM Energia Participações S.A. 4,457 59 25 Others 34 585 308 2,361 2,076 55 126 173 727 13,691 12,698 =#151The balances of goodwill and surplus value are shown below, which are in- cluded in investment balances: Main consolidated companies Percentage of total and voting capital 2021 2020 Headquarters Main activity Goodwill 2021 2020 2021 Added value 2020 Hailstone Ltd. 100.00 British Virgin Islands Holding Citrosuco GmbH Citrosuco S.A. Agroindústria Cementos Avellaneda S.A. 162 145 894 879 Nexa Resources S.A. 64.67 64.67 Luxembourg Holding 194 194 57 73 Votorantim Cimentos International S.A. 149 193 Jaguatirica Empreendimento Imobiliário SPE S.A. Votorantim RE 5 VTRM Energia Participações S.A. 132 136 Main consolidated companies Percentage of total and voting capital Compañia Minera Atacocha S.A.A. Nexa Resources Perú S.A.A Nexa Resources Cajarmarquilla S.A. Cementos Artigas S.A. 100.00 100.00 100.00 58.85 58.85 Luxembourg Luxembourg Holding Insurance Peru Mining 51.77 51.77 64.61 64.61 51.00 51.00 Peru Mining Peru Uruguay Zinc Cement Headquarters Main activity 2021 2020 Joint operations Subsidiaries Acerbrag S.A. Votorantim FinCO GmbH Janssen Capital B.V. Companhia Brasileira de Alumínio Santa Cruz Geração de Energia S.A. 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Argentina Steel Austria Netherlands Brazil Trading Holding Aluminum Baesa Energética Barra Grande S.A. Campos Novos Energia S.A. Great Lakes Slag Inc. 15.00 15.00 Brazil Electric power 44.76 44.76 50.00 50.00 Brazil Electric power Canada Cement Exclusive investment funds Brazil Electric power Silcar Empreendimentos, Comércio e Participações Ltda. 100.00 100.00 Brazil Holding Votener Votorantim Comercializadora de Energia Ltda. 100.00 100.00 Votorantim Cimentos N/NE S.A. 100.00 100.00 Brazil Electric power Brazil Cement Votorantim Cimentos S.A. 100.00 100.00 Brazil Cement Fundo de Investimento Pentágono VC Multimercado - Crédito Privado Fundo de Investimento Pentágono CBA Multimercado - Crédito Privado Odessa Multimercado Crédito Privado Odessa Multimercado Crédito Privado Fundo de investimento VC 100.00 100.00 Brazil Finance 100.00 100.00 94.19 94.19 Brazil Brazil Finance Finance 100.00 100.00 Brazil Finance Votorantim Energia Ltda. 100.00 100.00 Brazil Holding Votorantim Finanças S.A. 100.00 100.00 Brazil Votorantim Geração de Energia S.A. 100.00 100.00 Brazil Finance Holding Odessa Multimercado Crédito Privado Fundo de investimento VM 100.00 100.00 Brazil Finance Votorantim Investimentos Latino- Americanos S.A. 100.00 100.00 Brazil Holding Nexa Recursos Minerais S.A. Votorantim Cement North America Inc. Acerías Paz del Río S.A.. 64.67 64.67 100.00 100.00 91.20 Brazil Canada Colombia Zinc Holding Steel Votorantim Cimentos EAA Inversiones, S.L. 100.00 St. Marys Cement Inc. 83.00 100.00 100.00 Spain USA Holding Cement St. Helen Holding II B.V. 100.00 Cayman Islands Holding 150 =#152Investing entity Percentage of total capital Headquarters Main activity 2021 2020 Investing entity Percentage of total capital Headquarters Main activity 2021 2020 Main non-consolidated companies Associates Joint ventures Banco Votorantim S.A. Alunorte - Alumina do Norte S.A. Companhia Brasileira de Alumínio 3.03 3.03 Brazil Mining Mineração Rio do Norte S.A. Companhia Brasileira de Alumínio 10.00 10.00 Brazil Mining Votorantim Citrosuco GmbH Citrosuco S.A. Agroindústria Juntos Somos Mais Fidelização S.A. Votorantim S.A. Votorantim S.A. 50.00 50.00 50.00 50.00 Brazil Austria Agribusiness Finance Votorantim S.A. 50.00 50.00 Brazil Agribusiness Votorantim Cimentos S.A. 45.00 45.00 Brazil Services Cementos Cimentos Avellaneda S.A. International S.A. 49.00 49.00 Argentina Cement Hutton Transport Ltda. St. Marys 25.00 25.00 Canada Transportation IMIX Silcar Empreendimentos Empreendimentos e Imobiliários Ltda. Participações Ltda. Midway Group, LLC. 25.00 25.00 Brazil Mining St. Marys 50.00 50.00 USA Silcar Supermix Concreto S.A. Empreendimentos e Participações Ltda. 25.00 25.00 Brazil Concrete Cementos Votorantim RMC Leasing, LLC. VTRM Energia Participações S.A. St. Marys Votorantim Geração de Energia S.A. 50.00 50.00 USA Cement Equipament leasing 50.00 50.00 Brazil Electric power Especiales de las Cimentos Islas S.A. International S.A. 50.00 50.00 Spain Cement (b) Information about the companies' investes The following is a summary of selected financial information of the principal associates and joint ventures as at December 31, 2021: Non- Current assets current Current assets liabilities Non- current liabilities Finance Net Operation Equity revenue results income (costs) Profit (loss) for Total and voting the year capital (%) Investments accounted for based on the equity method - Associates Cementos Avellaneda S.A. 696 1,814 Alunorte Alumina do Norte S.A. 11,109 651 3,385 478 3,949 1,381 3,775 IMIX Empreendimentos Imobiliários Ltda. 7 7 14 2,458 10,899 7 679 1,261 (87) 247 49% (578) 430 3% 7 6 25% Mineração Rio do Norte S.A. 622 2,876 921 1,677 900 1,555 174 (193) (6) 10% Supermix Concreto S.A. 369 419 294 211 283 1,939 99 (5) 73 25% Cementos Especiales de las Islas S.A. 107 183 40 11 239 407 (23) 2 54 50% Controladas em conjunto (Joint ventures) 151 =#153Citrosuco GmbH Banco Votorantim S.A. (i) Citrosuco S.A. Agroindústria Juntos Somos Mais Fidelização S.A. VTRM Energia Participações S.A. Hutton Transport Ltda. Midway Group, LLC. RMC Leasing LLC = Non- Non- Current assets current Current assets liabilities current liabilities Net Operation Finance Profit income (loss) for Total and voting Equity revenue results (costs) the year capital (%) 6,426 1,078 1,143 387 5,974 4,572 275 150 368 50% 45,124 68,729 72,412 30,689 10,752 5,299 6,678 1,473 50% 3,603 5,081 4,369 6,243 (1,928) 3,953 (628) (291) (906) 50% 137 47 95 89 87 (45) 2 (32) 45% 555 4,749 28 818 4,457 (6) 15 59 50% 35 32 11 16 40 78 14 (1) 12 25% 39 27 15 51 142 19 19 50% 4 26 30 50% (i) As at December 31, 2021 and December 31, 2020, the investment included an adjustment to fair value in the amount of R$ 495. (c) Changes in investees 2021 2020 Opening balance for the year 12,698 11,720 Equity in the results of investees 585 727 Foreign exchange variations 187 734 Increase 165 10 Dividends and interest on equity (600) (264) Fair value of available-for-sale asset (31) Effect of acquisition of control of investee (226) Cash flow hedge 377 (115) VendaAmirys 246 192 Actuarial benefits 259 (272) Others (3) Closing balance for the year 13,691 12,698 152#15418. Property, plant, and equipment Accounting policy (i) Property, plant and equipment Property, plant and equipment are stated at their historical cost of acqui- sition or construction, less accumulated depreciation. Historical cost also includes finance costs related to the acquisition or construction of quali- fying assets. Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with these costs will flow to the Company and they can be measured reliably. The carrying amount of the replaced items or parts is derecognized. All other repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. The cost of major refurbishments is included in the carrying value of the asset when future economic benefits exceed the performance initially expected for the exis- ting asset. Refurbishment expenses are depreciated over the remaining useful life of the related asset. Land is not depreciated. Depreciation of other assets is calculated using the straight-line method to reduce their cost to their residual values over their estimated useful lives. Gains and losses on disposals are determined by comparing the sales amount with the carrying amount and are recognized within Other opera- ting income (expenses), net in the statement of income. (ii) Impairment of non-financial assets Assets that are subject to depreciation and amortization are reviewed for impairment whenever events or changes in economic, operating or tech- nological circumstances may indicate impairment or loss of book value. An impairment loss is recognized when the carrying amount of the asset or cash generating unit (CGU) exceeds its recoverable amount, adjusting the carrying amount to the recoverable amount. The recoverable amount is the greater of an asset's fair value less costs to sell and its value-in-use. For the purpose of impairment assessment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets, except goodwill, which have been impaired, are subsequently reviewed for the analysis of a possible reversal of impairment, at the balance sheet date. The recoverability of the assets that are used in the activities of the Company and its subsidiaries is evaluated whenever events or changes in circumstances indicate that the book value of an asset or group of assets may not be recoverable based on future cash flows. If the carrying amount of these assets exceeds their recoverable value, the net amount is adjusted and their useful life is adjusted to new levels. = An asset's carrying amount is written down immediately to its recoverable amount when the asset's carrying amount is greater than its estimated re- coverable amount, in accordance with the criteria adopted by the Company in order to determine the recoverable amount. 153#155(a) Breakdown and changes 2021 2020 Buildings Machinery, Asset Land and improvements construction and equipment and facilities Furniture Vehicles and fittings Construction in progress retirement Leasehold obligation improvements Other Total Total Opening balance for the year Cost Accumulated depreciation 2,396 (72) 12,753 43,573 1,739 282 4,464 1,247 742 574 67,770 57,552 (6,242) (28,297) (1,272) (227) (745) (461) (349) (37,665) (30,404) Net opening balance for the year 2,324 6,511 15,276 467 55 4,464 502 281 225 30,105 27,148 Additions 46 16 134 1 1 4,790 351 7 5,346 3,516 Disposals (241) (14) (553) (6) (2) (3) (819) (136) Depreciation (5) (527) (1,878) (113) (14) (43) (34) (41) (2,655) (2,467) Depreciation (7) (78) (5) (90) Foreign exchange variation 28 125 103 25 49 49 20 15 136 501 2,664 Effect of subsidiaries included in (excluded from) consolidation (i) Reversal (constitution) for impairment (146) 1,779 1,215 81 (66) (51) 3 2,819 514 (41) (27) 590 Revision of estimated cash flow 5 72 (266) (41) 559 (879) (266) 96 Reclassification to assets classified as held-for-sale (1) (9) (10) (34) Write-off by corporate transaction (1) (2) (2) (5) (7) Adjustments to operations in countries with a hyperinflationary economy 75 Transfers (ii) 37 411 1,637 150 2 (2,690) 25 21 (407) (385) Closing balance for the year 2,000 Cost 2,078 Accumulated depreciation (78) 8,267 16,677 (8,410) 16,435 606 48 6,550 580 290 302 35,078 30,105 Net closing balance for the period 2,000 8,267 48,139 (31,704) 16,435 1,967 325 6,550 1,269 837 651 (1,361) (277) (689) (547) (349) 78,493 (43,415) 67,770 (37,665) 606 48 6,550 580 290 302 35,078 30,105 Average annual depreciation rates - % 1 4 9 20 10 5 9 (i) Refers to the business combination operation of indirect subsidiary St. Marys, as described in Notes 1.1 (o) and 1.1 (v). (ii) Transfers include the reclassification of works in progress in the group of property, plant, and equipment to software, rights over natural resources and other in the property, plant and equipment group. 154 =#156= (b) Construction in progress The balance is composed mainly of expansion and optimization projects related to the industry. CBA 2021 2020 Rondon projects Furnace refurbishment 172 115 100 66 Alumina factory project 53 13 Segment 2021 2020 Casting Projects 25 28 Nexa Resources 4,532 2,741 Plastic transformation projects 23 24 5% 8% Votorantim Cimentos 1,274 1,021 Security, health and enviroment projects 20 33 CBA 546 475 Mining projects 11 13 20% Long steel 42 97 Projects oven rooms 9 121 69% Votorantim Energia Other 31 22 Revitalization and adequacy of the plant 2 1 125 108 Other 131 61 6,550 4,464 546 475 Long steel 2021 2020 The main projects in progress by business segment are as follows: Sustaining 34 86 Security projects, health and environment projects Nexa Resources Expansion and modernization projects Sustaining Security, health and enviroment projects Information technology Other 2021 2020 - Colombia 5 8 3,410 2,006 Other 3 3 859 605 42 97 213 112 19 16 Energy 31 2 Corumba GO projects 4,532 2,741 Information technology 2021 2020 21 31 1 31 22 Votorantim Cimentos 2021 2020 Sustaining 613 357 Cement grinding - Pecém - Brazil 325 135 Modernization industry 77 31 New production line in Sobral - CE 75 63 Hardware and software 70 72 Geology and mining rights 55 35 New lines of co-processing 15 41 Environment and security 2 182 Other 42 105 1,274 1,021 155#15719. Intangible assets Accounting policy (i) Goodwill Goodwill represents the excess of the cost of an acquisition over the net fair value of assets and liabilities of the acquired entity. Goodwill on acqui- sitions of subsidiaries is recorded as assets in the consolidated financial statements. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is allocated to CGUS for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which the goodwill arose. Annually, the Company and its subsidiaries review the net book value of goodwill, in order to assess whether there was impairment. The recoverable amounts of CGUS were determined according to the value in use, based on the discounted cash flow model. The recoverable amount is sensitive to the rate used in the discounted cash flow model, as well as the expected future cash receipts and the growth rate used for extrapolation purposes. (ii) Rights over natural resources Costs for the acquisition of rights to explore and develop mineral proper- ties and to explore wind resources are capitalized and amortized using the straight-line method over their useful lives, or, when applicable, based on the depletion of the mines in question. Once the mine or wind farm starts operating, these costs are amortized and considered a cost of production. Depletion of mineral resources and wind farms is calculated based on ex- traction and utilization, respectively, taking into consideration their estima- ted productive lives. (iii) Computer software Costs associated with software maintenance are amortized over their useful lives. (iv) Use of public assets This represents the amounts established in the concession contracts re- garding the rights to hydroelectric power generation (onerous concession) under Use of Public Assets agreements. These transactions are accounted for at the time when the operating permit is awarded, regardless of the disbursement schedule established in the contract. Upon inception, this liability (obligation) and intangible asset (concession right) correspond to the total amount of the future obligations discounted to their present value (present value of cash flow from future payments). The amortization of the intangible asset is calculated on a straight-line ba- sis over the period of the authorization to use the public asset. The financial liability is updated by the effective interest method and reduced by the payments contracted. (v) Contractual customer relationships and non-competition agreements Contractual customer relationships and non-competition agreements acquired in a business combination are recognized at fair value at the ac- quisition date. The contractual customer relations and non-competition agreements have a finite useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straight-line method over the estimated useful lives. = 156#158(a) Breakdown and changes 2021 2020 Contracts, Rights over natural resources Goodwill customer Hydrological Asset Use of relationships retirement public and renegotiation obligation assets agreements risk (ii) Software Rights over trademarks and patents Other Total Total Opening balance for the year Cost Accumulated amortization Net opening balance for the year Additions Disposals 13,078 (7,022) 6,579 535 540 (208) (236) 403 (318) 770 86 (563) (57) 1,639 (632) 23,630 19,391 (9,036) (6,108) 6,056 6,579 327 304 85 207 29 1,007 14,594 13,283 179 257 4 222 448 4 1,114 22 (1) (11) (2) (2) (16) (25) Amortization and depletion (474) (23) (18) (35) (14) (79) (1) (13) (657) (550) Foreign exchange variation. 430 382 10 3 2 62 889 3,369 Effect of subsidiaries included in consolidation (i) 245 (26) 93 257 1 37 607 6 Impairment Changes in the interest rate Reclassification of assets classified as held for sale (1) (32) (5) (32) (1,898) (13) (6) Transfers (iii) 65 56 89 210 400 Closing balance for the year 6,499 7,181 374 508 310 434 189 28 Cost 15,468 7,181 611 776 711 448 847 88 Accumulated amortization Net closing balance for the year (8,969) (237) (268) (401) (14) (658) (60) 1,180 16,703 14,594 1,212 27,342 23,630 (32) (10,639) (9,036) 6,499 7,181 374 508 310 434 189 28 1,180 16,703 14,594 Average annual amortization and depletion rates - % 5 7 7 (i) Refers to the business combination operation of indirect subsidiary St. Marys, as des- cribed in Notes 1.1 (o) and 1.1 (v). (ii) As a result of the application of Law No. 14,052/2020, the Company and its subsidia- ries recognized an increase in the gross amount of R$ 448 referring to the renegotia- tion of risk hydrological power generation, through the extension of the term of the concession right of the plants, as detailed in note 1.1 (I). (iii) (Transfers include the reclassification of Works in progress in the group of property, plant and equipment to Softwares, Rights over natural resources and Other in the group of intangible assets. 157 20 =#159(b) Goodwill on acquisitions Accounting policy The Company and its subsidiaries use the acquisition method to account for transactions classified as a business combination. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, liabilities incurred and equity instruments. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration agreement when applicable. Acquisition-related costs are recorded in the income statement for the year as incurred. Identifiable assets acquired and liabilities assumed in a business combination are initially measured at fair values on the acquisition date. The Company and its subsidiaries recognize the non-controlling interest in the acquiree, both at fair value and at the proportional portion of the non-controlling interest in the fair value of the acquiree's net assets. The non-controlling interest to be recognized is determined on each acquisition. Long steels Latin America Acergroup S.A. Acerholding S.A. Acerbrag S.A. CBA Brazil Campos Novos Energia S.A. Metalex Ltda. Rio Verdinho Energia S.A. 2021 2020 149 149 5 5 1 1 155 155 31 31 49 49 29 29 Machadinho Energética S.A. 15 15 BAESA Energética Barra Grande S.A. 7 7 131 131 Votorantim Cimentos North America Europe, Asia and Africa Latin America Brazil Cimento Vencemos do Amazonas Ltda. Engemix S.A. Nexa Resources Latin America Holding and other 2021 2020 Latin America Votorantim Andina S.A. 2,494 2,163 1,953 1,831 13 13 16 16 Fazenda Bodoquena Ltda. 1 1 Jaguatirica Empreendimento Imobiliário SPE S.A. 5 17 22 7,181 6,579 64 64 76 76 4,600 4,147 (c) Impairment test for goodwill Nexa Resources Perú S.A.A. 1,735 1,616 Nexa Resources Cajamarquilla S.A. 516 481 Brazil Campos Novos Energia S.A. Pollarix S.A. 26 26 1 2,278 2,124 158 Assets that have an indefinite useful life, for example goodwill, are not sub- ject to amortization and are tested annually for impairment. The Company and its subsidiaries evaluate at least annually the recoverabi- lity of the carrying value of the operating segment of each CGU. The pro- cess of estimating these values involves the use of assumptions, judgments and estimates of future cash flows that represent the best estimate of the Company and its subsidiaries. =#160The Company's management determined the budgeted gross margin based 20. Borrowing on past performance and its expectations of market development. The discount rates used are pre-tax and reflect specific risks related to the operating segment or the CGU being tested. The calculations of the value in use are based on cash flow projections, before the calculation of income tax and social contribution, and based on the financial budgets approved by Management for the projected period for the next five years. The amounts referring to cash flows, for the period exceeding five years, were extrapolated based on the estimated growth ra- tes. The growth rate does not exceed the long-term average for the sector. Cement CBA Nexa Resources (i) Long steels Holding and other 2021 Discount rate 2020 5.80% to 15.20% 6.50% to 15.80% 7.96% 9.19% 6.22% to 7.33% 7.22% to 7.82% 9.25% to 18.89% 9.66% to 20.03% 9.35% to 10.80% 9.34% to 11.14% (i) The fair value calculations were based on the discounted cash flow model and are based on the premise that growth rates take into account independent information about projections, such as LME quotes (mainly zinc and copper). Accounting policy Borrowings are initially recognized at fair value, net of transaction costs incurred, and subsequently carried at amortized cost. Any difference be- tween the proceeds (net of transaction costs) and the total amount payable is recognized in the statement of income over the period of the borrowings using the effective interest rate method. Borrowing costs directly related to the acquisition, construction or produc- tion of a qualifying asset that requires a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of that asset when it is probable that future economic benefits associated with the item will flow to the Company and costs can be measured reliably. The other borrowing costs are recognized as finance costs in the period in which they are incurred. 159 =#161(a) Breakdown and fair value Туре Local currency Debentures Export credit notes (i) BNDES Development promotion agency FINAME Syndicated loan/bilateral agreements Others National Total Average annual charges 116.19% CDI / IPCA + 4,08% 117.61% CDI TJLP +2.76% / 1.86% Pré BRL / SELIC +3.10% / IPCA + 5.31% IPCA +1.54% 3.74% Pré BRL 6.83% Pré BRL/TJLP + 0.86% Current Non-current Total Fair value 2021 2020 2021 2020 2021 2020 2021 2020 93 7 53 267 2,561 2,511 2,654 252 1,825 259 2,564 2,608 3,214 2,092 266 2,827 129 66 1,305 1,037 1,434 1,103 1,216 1,829 9 1 69 34 78 35 79 47 9 10 4 14 13 24 12 25 38 553 591 591 11 18 28 13 39 31 34 34 258 453 4,219 5,987 4,477 6,440 4,215 8,567 Foreign currency Eurobonds USD Export credit notes Loans - Law 4.131/1962 (ii) Eurobonds - BOB 6.05% Pré USD 228 231 13,801 13,315 14,029 13,546 15,980 16,225 LIBOR +1.54% / 4.71% Pré USD 18 4 2,604 LIBOR +0.98% / 1.90% Pré USD 2 2 1,665 5.38% Pré BOB 1 1 437 697 2,622 1,387 1,667 407 438 701 2,267 1,389 1,667 408 346 725 1,389 408 Syndicated loan/bilateral agreements LIBOR +0.99% / 5.55% Pré BOB / 9.33% Pré UYU / 14.65% Pré TRY/1.43% Pré CAD / 1.65% EUR/ 2.17 EURIBOR 81 90 1,655 Export prepayments Working capital 209 1,320 312 1,736 1,410 1,762 1,535 521 530 Other IBR +2.54% / 6.16% Pré COP / 0.98% Pré PEN Development promotion agency Foreign Total Total 8 368 2 29 10 397 220 368 40 5.90% Pré BOB / 0.98% Pré CAD 7 9 18 181 23 221 229 25 32 25 34 345 603 954 20,182 17,671 20,527 18,625 22,267 21,443 1,407 24,401 23,658 25,004 25,065 26,482 30,010 Current portion of long-term borrowing Interest on borrowing 237 488 351 358 Short-term borrowing 15 561 603 1,407 (i) Some loan contracts are in the form of Export Credit Notes, which aim to finance export-related operations, and have linked swap contracts (derivative financial instrument), which aim to exchange exposure to the floating rate CDI in reais for a fixed rate in the US dollars, with the exchange of currency from reais to dollars. (ii) Loans related to Law 4131/1962 have swaps (derivative financial instruments) aimed at both the exchange of floating rates in LIBOR and pre-fixed to floating rates in CDI, as well as the 160 =#162exchange of currency, dollar to real. These swaps were contracted with the financial institution in conjunction with the loan (dollar-denominated debt + swap to reais in % of CDI). The terms and conditions of the loan and derivative are configured as a matched operation, so that economically the resulting is a debt in % of the CDI in reais. The difference in measurement between the two instruments (loan at amortized cost x derivative at fair value) generates an accounting mismatch in the result and to eliminate this effect, contracts made as of August 2015, were designated as fair value, the effect of this designation being the measurement of debt at fair value through profit or loss as per Note 25. (iii) The Company and its subsidiaries revised the methodology for calculating the fair value of debts for disclosure purposes, which started to use as a reference the individual credit risk rate of the Company and its subsidiaries, and no longer the rate consolidated benchmark, with the exception of the fair values of the bonds, which were calculated using as a reference unit prices published in the secondary market in all quarters. Key: 161 Colombian Peso. BNDES BRL. National Bank for Economic and Social Development. Brazilian currency (Real). BOB Bolivian. CAD Canadian Dollar. CDI. Interbank Deposit Certificate. CDOR.. Canadian Dollar Offered Rate. COP EUR EURIBOR FINAME IBR INR Indian Rupee. IPCA LIBOR.. European Union currency (Euro). Euro Interbank Offered Rate. Government Agency for Machinery and Equipment Financing. Interbank Rate (Colombia). Extended Consumer Price Index. London Interbank Offered Rate. PEN .... Peruvian Sol. SELIC Special System for Clearance and Custody. TJLP. Long-term interest rate set by the National Monetary Council. Until December 2017, the TJLP is the BNDES basic cost of fi- nancing. As of January 2018, the Long Term Rate (TLP) became the main financial cost of BNDES financing. Tunisian Dinar. TND TRY. Turkish Lira. USD US Dollar. UYU Uruguayan Peso. =#163(b) Changes Opening balance for the year 2021 25,065 2020 19,755 New borrowing 4,414 11,772 Interest 1,395 1,314 (i) Refers to the business combination operation of indirect subsidiary St. Marys, as des- cribed in Notes 1.1 (o) and 1.1 (v). (ii) Refers to the curve value of the combined financial instruments designated as hedge accounting. Addition of borrowing fees, net of amortization 16 10 Fair value adjustment (53) 26 Foreign exchange variation 1,387 4,345 Payments interest (1,410) (1,263) Payments principal (6,779) (10,846) Effect of subsidiary included in consolidation (i) 523 Reclassification to liabilities related to assets held for sale (55) (c) New borrowing and amortizations Through the funding and prepayment of certain debts, the Company seeks to extend the average maturities, as well as to balance the exposure to different currencies for loans and financing against cash generation in these currencies. Adjustment through other comprehensive income (ii) 404 Gain on debt renegotiation Other Closing balance for the year 42 6 1 The main funding operations carried out during the year were as follows: 25,004 25,065 Date Feb-21 Mar-21 Mar-21 Mar-21 Company St Marys Cement Inc. Votorantim Cimentos S.A. Votorantim Cimentos N/NE S.A. Votorantim Cimentos S.A. Type Currency Syndicated loan/bilateral agreements Debentures CAD Principal (25) Principal BRL (107) Maturity Cost 2024 CDOR 03M +0.99% BRL (450) (450) 2026 CDI 1.45% Debentures CRI BRL (136) (136) 2033 IPCA + 4.4657% Debentures CRI BRL (264) (264) 2033 IPCA + 4.4657% Apr-21 St Marys Cement Inc. Syndicated loan/bilateral agreements CAD (60) (265) 2024 CDOR 03M + 0.99% Apr-21 St Marys Cement Inc. Syndicated loan/bilateral agreements USD (80) (432) 2024 LIBOR 03M + 0.99% May-21 Mineração Dardanelos Ltda BNDES BRL (160) (160) 2040 IPCA + 5.52% Jun-21 Mineração Dardanelos Ltda BNDES BRL (101) (101) 2040 IPCA + 5.52% Jun-21 Votorantim Cimentos S.A. Loans Law 4.131/1962 USD (50) (267) 2026 CDI + 1.50% Jul-21 Votorantim Cimentos S.A. Loans Law 4.131/1962 USD (50) (249) 2026 CDI + 1.50% Jul-21 Aug-21 Aug-21 Oct-21 Votorantim Cimentos EAA Inversiones S.L. Votorantim Cimentos EAA Inversiones S.L. Votorantim Cimentos EAA Inversiones S.L. Votorantim Cimentos S.A. Syndicated loan/bilateral agreements EUR (35) (215) 2026 EURIBOR 03M + 1.65% Syndicated loan/bilateral agreements EUR (40) (246) 2026 EURIBOR 06M +1.70% Syndicated loan/bilateral agreements EUR (50) (307) 2026 1.65% pré Debentures BRL (500) (500) 2028 CDI 1.55% Dec-21 Companhia Brasileira de Aluminio Debentures BRL (230) (230) 2029 CDI 1.55% 162 =#164The main amortizations made during the year were as follows: Date Company Type Currency Principal Principal BRL Maturity Observation Jan-21 Nexa Recursos Minerais S.A. Export Credit Note BRL (250) (250) 2022 Pre payment Mar-21 Votorantim Cimentos N/NE S.A. Debentures BRL (450) (450) 2023 Pre payment Mar-21 Votorantim Cimentos S.A. Debentures BRL (120) (120) 2025 Pre payment Mar-21 Votorantim Cimentos S.A. Debentures BRL (280) (280) 2023 Pre payment Apr-21 Acerías Paz Del Río, S.A. Working capital COP (86,000) (129) 2022 Pre payment Apr-21 McInnis Cement Inc Syndicated loan/bilateral agreements CAD (37) (162) 2022 Pre payment Apr-21 McInnis Cement Inc Syndicated loan/bilateral agreements USD (106) (570) 2022 Pre payment May-21 Nexa Resources Pre payment export USD (20) (106) 2023 May-21 Jun-21 Jun-21 Jun-21 St Marys Cement Inc. Nexa Recursos Minerais S.A. Votorantim Cimentos EAA Inversiones S.L. Votorantim Cimentos S.A. Syndicated loan/bilateral agreements CAD (25) (109) 2024 Pre payment Export Credit Note BRL (245) (245) 2022 Pre payment Syndicated loan/bilateral agreements EUR (45) (264) 2025 Pre payment Debentures BRL (267) (267) 2023 Pre payment Jun-21 Nexa Resources Development promotion agency USD (43) (212) 2026 Pre payment Jul-21 Nexa Resources Pre payment export USD (80) (412) 2023 Pre payment Jul-21 Nexa Resources Perú S.A.A. Syndicated loan/bilateral agreements BRL (477) (477) 2025 Pre payment Jul-21 Votorantim Cimentos S.A. Debentures BRL (253) (253) 2023 Pre payment Sep-21 St Marys Cement Inc. Syndicated loan/bilateral agreements CAD (25) (105) 2024 Pre payment Oct-21 St Marys Cement Inc. Syndicated loan/bilateral agreements CAD (25) (114) 2024 Pre payment Oct-21 St Marys Cement Inc. Syndicated loan/bilateral agreements USD (35) (198) 2024 Pre payment Oct-21 Votorantim Cimentos N/NE S.A. USD (75) (409) 2024 Pre payment Oct-21 Votorantim Cimentos S.A. Debentures BRL (113) (113) 2025 Pre payment 44501 44501 Votorantim Cimentos EAA Inversiones S.L. Votorantim Cimentos Internacional Syndicated loan/bilateral agreements EUR (25) (154) 2027 Pre payment Eurobonds USD (29) (165) 2041 Pre payment Dec-21 Companhia Brasileira de Aluminio Eurobonds USD (50) (285) 2024 Pre payment Dec-21 Votorantim Cimentos EAA Inversiones S.L. Syndicated loan/bilateral agreements EUR (20) (128) 2026 Pre payment (d) Maturity (e) Breakdown by currency Current Non-current Total 7,886 7,585 2021 2020 USD 248 Real 258 Local currency 4,690 Euro (2) 2021 2020 2021 2020 488 18,237 15,892 18,485 16,380. 453 4,219 5,987 4,477 6,440 3 1,147 954 1,145 957 3,949 Foreign currency 3,389 Boliviano 35 26 600 577 635 603 2,469 2,557 2,994 Colombian peso 364 19 383 1,852 Turkish lira 9 22 8 29 17 51 999 1,703 1,972 603 1,696 Other 55 51 190 200 245 251 1,301 345 843 955 766 585 301 603 1,407 24,401 23,658 25,004 25,065 2022 2023 2024 2025 2026 2027 2028 2029 + 163 =#165(f) Breakdown by index Current Non-current Total 2021 2020 2021 2020 2021 2020 Local currency CDI 93 321 1,791 3,796 TJLP 28 19 98 99 1,884 126 4,117 118 TLP 68 48 1,100 795 1,168 843 Fixed rate 18 54 11 575 29 629 SELIC 37 11 129 148 166 159 IPCA 14 1,090 574 1,104 574 258 453 4,219 5,987 4,477 6,440 Foreign currency Fixed rate 340 565 LIBOR 2 252 17,559 14,621 17,899 15,186 1,772 2,077 1,774 2,329 Euribor 3 3 Other 134 850 1 954 19 853 1 957 153 345 954 20,182 17,671 20,527 18,625 603 1,407 24,401 23,658 25,004 25,065 (g) Collateral On December 31, 2021, the Company guaranteed or provided guarantees for the following balance of loans and financing. Company Votorantim Cimentos International S.A. Companhia Brasileira de Alumínio Other 2021 2020 3,246 3,226 722 907 12 3,980 13 4,146 In addition to these guarantees, the Company provides a guarantee for the R$ 1,293 debt balance of the joint venture VTRM (December 31, 2020, R$ 1,344). On December 31, 2021, the amount of R$ 1,111 was guaranteed by fixed assets due to the chattel mortgage (December 31, 2020, R$ 879). 164 (h) Covenants/financial ratios Certain borrowing items are subject to compliance with certain financial ratios (covenants). Where applicable, such obligations are standardized for all loan and financing agreements. The Company and its subsidiaries complied with all of these covenants, as applicable. =#16621. Lease (a) Changes in rights of use – IFRS 16 Land and improvements Property, buildings and commercial rooms 2021 2020 Machinery, equipment and facilities IT equipment Vehicles Vessels Total Total Opening balance for the year Cost Accumulated amortization Net opening balance for the year Remeasurement of principal New contracts 122 235 340 40 291 321 1,349 1,050 (30) (103) (147) (33) (164) (75) (552) (237) 92 132 193 7 127 246 797 813 (2) (2) (1) 13 51 105 3 48 47 267 118 Amortization Disposals Renegociation of contracts (1) Effect of subsidiaries excluded in consolidation (i) 214 (3) 34 Reclassification to assets held for sale (25) (101) Foreign exchange variation 5 2 Constitution for impairment (15) (43) (97) (1) (92) (77) (325) (276) (5) (5) (3) 1 (8) 53 518 816 1 (126) 9 7 50 70 154 (1) 309 111 140 9 139 784 1,492 797 Cost 377 247 409 41 388 1,050 2,512 1,349 Accumulated amortization (68) (136) (269) (32) (249) (266) (1,020) (552) Net closing balance for the year 309 111 140 9 139 784 1,492 797 (i) Refers to the business combination operation of indirect subsidiary St. Marys, as described in Notes 1.1 (o) and 1.1 (v). 165 =#167(b) Change in lease obligations - IFRS 16 2021 2020 Opening balance for the year 858 841 Remeasurement of principal (1) 7 New contracts Amortization 263 112 (363) (251) Fair value adjustment (18) (7) Renegociation of contracts 2 (8) Effect of subsidiaries included in consolidation (i) 820 1 Foreign exchange variation (10) 163 Closing balance for the year 1,551 858 Current Non-current 330 235 1,221 623 1,551 858 (i) Refers to the business combination operation of the indirect subsidiary St. Marys, as described in Notes 1.1 (o) and 1.1 (v). (c) Maturity profile 391 230 121 102 84 623 2022 2023 2024 2025 2026 2027+ 22. Confirming payables 166 The Company and its subsidiaries signed contracts with financial institu- tions, intending to allow suppliers in the domestic and foreign markets to anticipate their receipts. In these operations, suppliers transfer the right to receive the securities from the sale of goods to financial institutions. Operations - Confirming payables Domestic market Foreign market 2021 2020 483 540 2,922 1,840 3,405 2,380 =#16823. Current and deferred income tax and social contribution Accounting policy The income tax and social contribution expense for the period comprises current and deferred taxes. Taxes on profit are recognized in the statement of income, except to the extent that they relate to items recognized directly in equity. In such cases, the taxes are also recognized in comprehensive income or directly in equity. The current and deferred income tax and social contribution is calculated on the basis of the tax laws enacted or substantively enacted at the ba- lance sheet date in the countries where the entities operate and generate taxable income. Management periodically evaluates positions taken by the Company in income tax returns with respect to situations in which the applicable tax regulation is subject to interpretation. It establishes provision where appropriate on the basis of amounts expected to be paid to the tax authorities. Income tax and current social contribution are shown net, by taxpayer en- tity, in liabilities when there are amounts to be paid, or in assets when the amounts paid in advance exceed the total due on the balance sheet date. Deferred tax assets are recognized only to the extent it is probable that fu- ture taxable profit will be available against which the temporary differences and/or tax losses can be utilized. Deferred income tax assets and liabilities are presented net in the balance sheet when there is a legal right and the intention to offset them upon the calculation of current taxes, generally related to the same legal entity and the same taxation authority. Thus, deferred tax assets and liabilities in diffe- rent entities or in different countries are presented separately, and not net. The Company and its subsidiaries are subject to income taxes in all countries in which it operates. The provision for income tax is calculated individually by the entity based on tax rates and rules effective at the entity's location. The Company and its subsidiaries also recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amou- nts that were initially recorded, such differences will have an impact on the current and deferred tax assets and liabilities in the period in which the determination is made. (a) Reconciliation of Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL) expenses The amounts of income tax and social contribution shown in the result for the periods ended on December 31 show the following reconciliation based on the Brazilian nominal rate: Profit (loss) before income tax and social contribution Standard rates Income tax and social contribution at standard rates Adjustments for the calculation of income tax and social contribution at effective rates Credit referring to the non-levy of income tax and social contribution on undue payment (i) Equity Difference related to the rate of companies abroad Tax loss and negative basis without deferred tax constitution Impairment of goodwill without deferred constitution 2021 10,317 34% (3,508) 2020 (1,467) 34% 499 252 199 247 181 (45) (607) (607) (351) Impairment of fixed assets without deferred tax constitution (ii) 105 (524) Recognition of deferred charges on exchange variation of fixed assets (157) (356) Addition of Profit abroad IN 1520/14 (288) (381) IR credit non-external payment IN 1520/14 189 280 Deferred tax impairment (42) (98) 244 (249) (3,432) (1,585) Permanent, net additions (exclusions) IRPJ and CSLL calculated = 167#1692021 2020 (b) Breakdown of deferred tax balances Current Deferred IRPJ and CSLL on result Effective rate - % (i) During 2021, the subsidiary VCSA and the indirect subsidiary VCNNE recorded in ac- cordance with accounting standards IAS 12/CPC 32 - Taxes on income and Technical Interpretation IFRIC 23/ICPC 22 - Uncertainty on treatment of taxes on profit, provi- sion of credits referring to the non-levy of IRPJ and CSLL on the amounts related to the SELIC rate received due to the repetition of tax overdue. VCSA clarifies that this provision refers only to the repetition of the tax overdue of actions that dealt with the exclusion of ICMS from the PIS and COFINS calculation basis. The decision of the Extraordinary Appeal (RE) judged by the Supreme Federal Court (STF) on September 24, 2021, has not yet become final and is pending a possible appeal. VCSA and VCNNE have filed lawsuits on the matter and considered it likely that these would have a fa- vorable outcome. (ii) In the third quarter of 2021, with the total liquidation of Votorantim Cement Corporation Limited, located in Hong Kong, the impairment cost previously recorded became tax deductible, on which the deferred income tax had not been constituted. Tax benefit on goodwill Asset retirement obligation Foreign exchange Use of public assets Provision for profit sharing (1,801) (900) (1,631) (685) Tax credits on tax losses 2021 2020 2,437 1,843 (3,432) (1,585) 33% -108% Credit referring to the non-incidence of IRCS on SELIC of undue payments (i) 252 Tax credits on temporary differences Estimation for losses on investments, fixed and intangible assets 1,178 990 Tax, civil and labor provision 475 640 503 503 Deferred of gains on derivative instruments 282 814 181 228 25 318 134 143 PPR 250 197 Estimation for inventory losses 117 118 Environmental liabilities 127 98 Provision for energy charges 67 57 Provision for social security obligations 111 57 Provision for loans 36 67 Financial instruments - firm commitment 19 77 Estimated asset disposals 14 14 Other tax credit 223 236 Tax debts on temporary differences Adjustment of useful lives of PP&E (depreciation) (2,976) (2,472) Market value assets (1,896) (1,728) Deferred of loss on derivative instruments (1,122) (88) Adjustment to fair value - financial instruments (358) (623) Goodwill amortization (346) (343) Capitalized interest (126) (136) Adjustment to present value (121) (151) Fair value adjustments (42) (50) Hydrological risk renegotiation (ii) (133) Other tax debts Net Net deferred tax assets related to the same legal entity (439) (451) (1,128) 358 2,696 2,731 Net deferred tax liabilities related to the same legal entity (3,824) (2,373) (i) Refers to credit recognition, as described in Note 23 (a) (i). 168 (ii) Refers to the recognition of the renegotiation of the hydrological risk, according to the operation described in Note 1.1 (1). =#170(c) Effect of deferred income tax and social contribution on the result for the semester and on the result Opening balance for the year Effects on the results for the year - continuing operations Effect on other components of comprehensive income Deferred income tax from subsidiary included in consolidation (i) Closing balance for the year 2021 2020 358 (1,631) (329) 1,254 (686) (210) 474 (1,128) 358 (i) It refers to the tax included in the consolidation for the business combination with McInnis, as described in Notes 1.1(o) and 1.1 (v). (d) Realization of deferred income tax and social contribution on tax losses In 2022 In 2023 In 2024 In 2025 In 2026 After 2027 2021 Percentage 18 12 1% 0% 77 3% 167 586 7% 24% 1,577 2,437 65% 100% 24. Provision Accounting policy The Company and its subsidiaries are party to tax, civil, labor and other le- gal claims in progress at different Court levels. Provision against potentially unfavorable outcomes of litigation in progress is established and updated based on management evaluation, as supported by external legal counsel, and requires a high level of judgment regarding the matters involved. The judicial deposits are monetarily restated and when they have a corres- ponding provision they are presented net in Provision. Judicial deposits that do not have a corresponding provision are presented in non-current assets. (i) Provision for tax, civil, labor, environmental and other legal claims The provision for tax, civil, labor, environmental and other legal claims is re- cognized when: (i) the Company has a present legal or constructive obliga- tion as a result of past events, (ii) it is probable that an outflow of resources will be required to settle the obligation, and (iii) the amount can be reliably estimated. Losses classified as possible are not recognized for accounting purposes, and are disclosed in the notes. Contingencies with probability of loss classified as remote are not provisioned or disclosed, except when the Company and its subsidiaries consider their disclosure justified. The classification of losses between possible, probable and remote is based on Management's assessment, based on the opinion of its legal advisors. Provision is measured at the present value of the expenditure expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to time elapsing is recogni- zed as interest expense. Provision does not include future operating losses. 169 =#171(ii) Asset retirement obligations The calculation of asset retirement obligations involves judgment about certain assumptions. In environmental terms, they refer to the future obliga- tion to restore the ecological conditions similar to those existing before the beginning of the project or activity, or to carry out compensatory measures, agreed upon with the applicable bodies, as a result of it being impossible to return the areas to the pre-existing condition. These obligations arise from the beginning of the environmental degradation of the area occupied by the operation or from formal commitments made to the environmental body, under which the degradation must be compensated. The dismantling and removal of an asset from an operation occurs when it is permanently retired, through the interruption of its activities, or by its sale or disposal. Expenditures relating to mine retirement is recorded as asset retirement obligations. The asset retirement cost, equivalent to the present value of the obligation (liability), is capitalized as part of the carrying amount of the asset, which is depreciated over its useful life. These liabilities are recorded as provisions. The Company and its subsidiaries recognize a liability based on the fair value for the demobilization of assets in the period in which they occur, against the corresponding intangible asset. The Company and its subsidiaries consider the accounting estimates re- lated to the recovery of degraded areas and the costs of closing a mine as a critical accounting practice because it involves expressive amounts of provisions and these are estimates that involve several assumptions such as interest rates, inflation, useful life of the assets considering the current stage of exhaustion, the costs involved and the projected depletion dates of each mine. These estimates are reviewed annually by the Company and its subsidiaries. (iii) Obligation for environmental liabilities The environmental liability must be recognized when there is an obligation on the part of the Company and its subsidiaries through having incurred an environmental cost which is not yet disbursed. (a) Breakdown and changes Additions 2021 2020 Legal claims Asset retirement obligation Tax Labor Civil Other Total Total Opening balance for the year 2,185 766 311 264 60 3,586 3,137 356 153 210 52 53 Reversals (10) (96) (125) (34) (23) 824 (288) (319) 512 Judicial deposits, net of write-offs 3 (1) 2 (3) Settlement in cash (183) (65) (62) (34) (3) (347) (146) (11) (11) (34) Settlements with judicial deposits Effect of subsidiaries included in consolidation (i) Foreign exchange variation 30 (17) (15) (14) 21 (16) Present value adjustment 107 107 117 Monetary restatement (5) 41 28 21 (1) 84 (19) 88 (1) (2) (2) 83 265 Revision of estimated cash flow (273) (273) 76 Closing balance for the year 2,295 782 338 252 84 3,751 3,586 (i) Refers to the business combination operation of the indirect subsidiary St. Marys, as described in Notes 1.1 (o) and 1.1 (v) and the sale of the investee APDR, as detailed in Note 1.1 (jj). 170 =#172(b) Provision for tax, civil, labor, other contingencies, and outstanding judicial deposits 2021 Tax Labor Civil Other 2020 Outstanding judicial deposits Outstanding judicial deposits Judicial deposits Provision Net amount (i) Judicial deposits Provision Net amount (i) (123) 905 782 172 (123) 889 766 145 (120) 458 338 23 (123) 434 311 22 (18) 270 252 4 (17) 281 264 3 (1) (262) 85 1,718 84 1,456 15 214 (1) 61 (264) 1,665 60 1,401 23 193 (i) The Company and its subsidiaries have balances deposited in lawsuits classified by Management, following the indications of the legal advisors of the Company and its subsidiaries as of remote or possible loss, therefore, without the respective provision. (c) Litigation in process with a likelihood of loss considered possible The Company and its subsidiaries were party to litigations representing a risk of possible losses, for which no provision has been made, as detailed below. Nature 2021 2020 Compensation for exploration for mineral resources (CFEM) 501 385 Collection of ICMS due to divergences regarding the destination of the property 267 262 2021 2020 ICMS on electricity charges 234 226 Tax Civil 12,311 12,581 IRPJ/CSLL - Transfer costs 195 191 Environmental 8,770 606 7,988 527 Error in fiscal classification - Importation IRPJ/CSLL Deduction of expenses 191 186 7 78 Labor and social security 366 22,053 367 21,463 Other lawsuits 5,570 12,311 6,553 12,581 (c.1) Comments on contingent tax and public rights liabilities with likelihood of loss considered possible The following are the main contingent liabilities related to tax proceedings in progress with the likelihood of possible loss, for which there is no provi- sion recorded. In the table below we present an analysis of the relevance of these processes: Nature Tax assessment notice - IRPJ/CSLL IRPJ/CSLL Profits abroad 2021 1,784 2020 1,729 1,445 837 1,061 833 Disallowances of PIS/COFINS credits 709 692 Disallowance of IRPJ/CSLL negative balance 571 385 ICMS - Credit (i) Tax assessment notice - IRPJ / CSLL In December 2016, the subsidiary VCSA was assessed by the Brazilian Federal Revenue Office in the historical amount of R$ 470 demanding the collection of IRPJ and CSLL relating to the period of 2011, due to the al- leged undue deduction of operating expenses and costs. In January 2018, the VCSA became aware of the Lower Court decision from the Federal Revenue's Judgment Office, which judged the appeal partially with grou- nds, reducing the lawsuit by approximately R$ 114. In December 2018, the Appeal of the Administrative Board of Tax Appeals was dismissed and the Voluntary Appeal was partially accepted for the VCSA. At this moment we await the formalization of the Court Decision. As at December 31, 2020, 171 =#173the restated amount of the contingency was R$ 580, of which R$ 54 was assessed as probable and has a properly constituted provision, the amount of R$ 224 was assessed as possible and the remainder as remote totaling the amount of R$ 316. In December 2017, the VCSA received a tax assessment notice from the Brazilian Federal Revenue Office in the amount of R$ 1,295 for alleged non- -payment or underpayment of IRPJ and CSLL relating to the period from 2012 to 2013, due to: (i) capital gain allegedly obtained due to a barter made by the VCSA; and (ii) supposedly incorrect amortization of goodwill. In October 2018, the Company became aware of the lower court decision, which considered the challenge unfavorable. At the moment, the case awaits the judgment of the Voluntary Appeal by CARF. On December 31, 2021, the updated contingency amount was R$ 1,562 and was assessed as possible. (ii) Profits abroad - IRPJ/CSLL The Company and its subsidiaries have assessments drawn up by the Brazilian Federal Revenue Office, for alleged nonpayment of IRPJ and CSLL on profits earned abroad by its subsidiaries or affiliates, in the periods of 2007, 2008, 2010, 2012, 2013 and 2014. The balance substantially composed by the Company, amounted to R$ 1,445 at December 31, 2021 (R$ 1,061 as at December 31, 2020). All cases are awaiting judgment at the administrative level. (iii) ICMS credit Between 2011 and 2013, eight notices of infringement and fines were filed against the Company's subsidiary Citrovita Agro Industrial Ltda. (CAI), mainly aimed at the collection of ICMS credited, as highlighted in invoices for the transfer of other subsidiaries, with the specific purpose of non taxable ex- port. The tax assessment notices totaled R$ 836 as at December 31, 2021. (iv) PIS/COFINS credit statement Substantially comprised by the subsidiary CBA, which has Decisional Orders and tax assessments relating to the PIS and COFINS credits, referring to the items applied in the production process, which, in the opinion of the Brazilian Federal Revenue Office, would not generate the right to credit of the said contributions. The amount restated as at December 31, 2021 was R$ 709. Currently, all the processes await administrative decisions. In the opinion of Management and in the opinion of its independent legal advisors, in light of precedents and case law, the likelihood of loss of the process is considered possible. (v) Financial Compensation for the Exploration of Mineral Resources CFEM - The subsidiaries Nexa BR, CBA and VCSA had several assessments drawn up by the National Department of Mineral Production DNPM for alleged failure to pay or lower collection of CFEM from 1991 to 2015. On December 31, 2020, the amount of possible loss amounted to R$ 501. (vi) IRPJ/CSLL negative balance credit VSA and its subsidiaries CBA received decisions regarding the gloss of ne- gative balance of IRPJ credits, totaling the updated amount of R$ 571 as at December 31, 2021. Currently, the cases are awaiting an administrative decision due to the pre- sentation of a challenge by the Company and its Subsidiaries. In the opinion of Management and in the opinion of its independent legal advisors, it appears that there was a misconception on the part of RFB when assessing the amounts presented by the Company and its subsidia- ries, which is why the likelihood of loss in the lawsuits is considered possible. 172 =#174(vii) Tax assessment notice - ICMS In the fourth quarter of 2016, the subsidiary CAI received a tax assessment notice whose value up to December 31, 2021 amounts to R$ 180. The pro- cess currently awaits judgment of the special appeal filed by the company before the Tax and Taxes Court of São Paulo. ICMS on electricity charges The subsidiary CBA has judicial and administrative discussions regarding the incidence of ICMS on the sector charges levied on the electricity tariff. As of December 31, 2021, the amount in controversy of these discussions amounts to R$ 234. In the opinion of Management and in the opinion of its independent legal advisors, the assessment is unfounded, which is why the likelihood of loss of the process is considered possible. (viii) IRPJ/CSLL - Transfer Price Between 2007 and 2010, four tax assessments were filed against its sub- sidiary CAI, aiming at the collection of IRPJ and CSLL, and the adjustment in the basis of tax losses and the negative basis of CSLL, due to the losses made in the adjustments made by the Company in this transfer pricing calculations in 2003 and 2004. In October 2018, one of the cases was clo- sed in a favorable to the CAI, with the amount of R$ 195 remaining under administrative discussion, restated up to December 31, 2021. The active processes await judgment of appeals by the Administrative Council of Tax Appeals. (ix) Tax classification mismatch - Import In March 2017, the subsidiary CBA was assessed on account of a suppo- sed error in the tax classification on the importation of inputs, resulting in the tax requirement (IPI, PIS, COFINS E II), whose value in December 2021 amounts to R$ 191. Because the undisputed legal counsel wrongly understood the complaint, the subsidiary CBA filed a challenge that was favorably judged in the first administrative instance. Currently, the case awaits judgment by the CARF of the voluntary appeal filed by the Attorney General of the National Treasury. In the opinion of Management and in the opinion of its independent legal advisors, the likelihood of loss of said process is considered possible. (x) Collection of ICMS due to divergences regarding the destination of the item The subsidiary CBA was assessed for alleged failure to pay ICMS. As at December 31, 2021, the value of these assessments was R$ 267. In the opinion of Management and in the opinion of its independent legal advisors, the criteria adopted in relation to the destination of the assets are in accordance with the pertinent legislation and the probability of loss of the process is considered possible. (xi) IRPJ/CSLL - Expense Deduction In December 2016, the subsidiary CAI was assessed by the RFB for the col- lection of IRPJ and CSLL, due to the gloss of exclusions from the calculation base of said taxes in the 2011 calendar year. The amounts required by the tax assessment notice total R$ 78. In the last quarter of 2018, a partial can- cellation of the tax assessment notice was filed by the Regional Judgment Office (DRJ), and judgment on the Voluntary Appeal filed is currently awaited. (c.2) Comments on contingent civil liabilities with likelihood of loss considered possible Nature 2021 2020 Public civil suit - Violation of the economic order 5,670 4,332 Administrative investigations carried out by the Secretariat of Economic Law 2,167 2,131 Other lawsuits 933 1,525 8,770 7,988 = 173#175(i) Civil class action - Violation of economic order In January 2012, the State Public Ministry of Rio Grande do Norte (MPE/ RN) filed a Public Civil Action (ACP) against the subsidiary VCSA, five other cement companies and entities representing the cement and concrete industry, for alleged violation of Brazilian competition law, based on a tech- nical note from the Secretariat of Economic Law (SDE) of 2011. MPE/RN made the following generic requests: (1) collective pain and suffe- ring of R$5,600 (corrected until January 2012), with solidarity between the defendants, to the National Fund for Diffuse Rights; (2) homogeneous in- dividual property damage to consumers equivalent to 10% of the amounts paid for cement or concrete purchased by consumers of brands negotiated by the defendants between 2002 and 2006, for settlement and individual collection by each consumer; (3) a fine of 1% to 30% of the gross income of the last fiscal year, not less than the supposed benefits (art. 23, 1, Law no 8,884/1994); and (4) other requests, including: (4.i) prohibition, for a period of at least five years, from obtaining financing from governmental financial institutions or from participating in bidding processes by the federal, state or municipal, government entities or agencies; and (4.ii) determination not to grant federal taxes in installments and cancellation of tax incentives or public subsidies. In September 2021, the preliminaries raised by the defendants were re- jected. The production of expertise was also determined, establishing that the burden of proving the damage is on the MPE/RN. At the moment, the appeals against the decision that rejected the preliminaries are awaiting judgment. There has not yet been an appointment of a judicial expert. (ii) Administrative Proceedings by SDE, currently CADE (Brazilian antitrust agency) In 2006, SDE initiated an investigation that culminated in the initiation of an administrative proceeding (PA) against several companies in the cement sector in Brazil, including the subsidiary VCSA, based on alleged anti-com- petitive practices, including the formation of a cartel with other compa- nies to fix prices and quantities of products. In January 2011, a technical note was issued by SDE and after the investigation phase was completed, in July 2015, CADE reached the final terms of its decision, determining the following sanctions, among others, to the subsidiary VCSA: (1) fine of approximately BRL 1,564 (20% of gross annual sales in 2016, based on Law No. 12,529/11); (2) several structural penalties, in short: (2.i) sale of all its equity interests in other cement companies and concrete companies in Brazil, (2.ii) sale of 20% of its installed capacity of concreting services in the Brazil, in relevant markets where subsidiary VCSA has more than one concrete plant and (2.iii) sale of a specific cement asset, which, in CADE's opinion, was directly related to the alleged anti-competitive practice; (3) other penalties which, in summary, include: (3.i) the prohibition of carrying out acts of concentration for a period of five years in the cement (among the convicted companies) and concrete (any act) markets and association (among the condemned companies) for greenfield projects in the cement, slag and concrete sectors; (3.ii) the prohibition of contracting with official financial institutions in the case of lines of credit subsidized by public pro- grams or resources; (3.iii) recommendation to the Federal Revenue not to grant federal tax installments or cancel, in whole or in part, tax incentives or public subsidies already granted. In October 2015, the subsidiary VCSA filed an ordinary action to annul (annulment action) the decision under the PA or, at least, to reduce the penalties applied. At the end of November 2015, an injunction was granted to suspend the effects of the decision in the PA, preventing CADE from demanding compliance with the obligations until judgment on the merits of the annulment action. CADE was summoned and presented its defense, while the subsidiary VCSA presented its reply in November 2016. Expert economic evidence was granted and, in May 2021, the judicial expert's re- port was presented. In November 2021, the parties presented their manifestation and technical opinion in relation to the expert report. At the moment, the decision of the court of first degree is awaited. The subsidiary VCSA classified the probabi- = 174#176lity of loss in the annulment action as possible and, therefore, there are no amounts provisioned. As at December 31, 2021, the updated amount of the possible contin- gency estimate (comprising exclusively of the fine) of the subsidiary VCSA was R$2,167. The subsidiary VCSA emphasizes that this estimate does not represent any agreement with CADE's conviction and any of the penalties imposed in the PA, but a mere estimate for purposes of possible contin- gency reporting. 25. Use of public assets Accounting policy The amount is originally recognized as a financial liability (obligation) and as an intangible asset (right to use a public asset) which corresponds to the amount of the total annual charges over the period of the agreement dis- counted to present value (present value of the future payment cash flows). The subsidiaries own or participate in companies that hold concession con- tracts in the electrical energy industry. Most of these contracts provide for annual payments from the commencement of operations and are adjusted by the General Market Price Index for the Use of Public Assets. The contracts have an average duration of 35 years, and the amounts to be paid annually are as follows: 175 =#1772021 2020 Concession start Plants/Companies Salto Pilão Salto do Rio Verdinho Itupararanga Piraju Investor date Concession end date Payment start date Companhia Brasileira de Alumínio Companhia Brasileira de Alumínio nov.-01 dec-36 jan.-10 60% Ownership Intangible assets interest (Note 18) 157 Ownership Intangible assets Liabilities interest (Note 18) Liabilities 695 60% 163 661 aug-02 sep-37 oct-10 100% 6 31 100% 7 27 Companhia Brasileira de Alumínio nov.-03 dec-23 jan.-04 100% 1 100% 2 Companhia Brasileira de Alumínio dec-98 jan.-34 feb-03 100% 1 8 100% 1 8 Ourinhos Companhia Brasileira de Alumínio jul.-00 aug-35 sep-05 100% 7 100% 1 6 Baesa - Energética Barra Grande Companhia Brasileira de Alumínio jun.-01 may-36 jun.-07 15% 20 72 15% 11 54 Fumaça Companhia Brasileira de Alumínio jun.-96 jun.-16 (i) 100% 55 55 França Companhia Brasileira de Alumínio jun.-96 jun.-16 (i) 100% 42 42 Porto Raso Serraria Companhia Brasileira de Alumínio jun.-96 jun.-16 (i) 100% 27 27 Companhia Brasileira de Alumínio jun.-96 jun.-16 (i) 100% 18 18 Barra Companhia Brasileira de Alumínio jun.-96 jun.-16 (i) 100% 51 51 Capim Branco le Capim Branco II Picada Pollarix S.A. aug-01 sep-36 oct-07 13% 2 16 13% 2 14 Pollarix S.A. may-01 jun.-36 jul.-06 100% 27 111 100% 16 85 Enercan Campos Novos Energia S.A Enercan - Campos Novos Energia S.A Pedra do Cavalo CBA Energia Participações S.A. Pollarix S.A. apr-00 may-35 jun.-06 24% 3 11 24% 2 8 apr-00 may-35 jun.-06 21% 3 9 21% 2 7 Votorantim Cimentos N/NE S.A. mar-02 apr-37 apr-06 100% 95 713 100% 99 625 508 1,867 304 1,497 Current Non-current 175 97 508 508 1,692 304 1,400 1,867 304 1,497 (i) Concession extension process not concluded. 176#17826. Pension plan and post-employment health care benefits Accounting policy The Company, through its subsidiaries abroad (VCNA, VCEAA, and Artigas) and in Brazil (VCNNE) and Votocel Investimentos Ltda. (Votocel), partici- pates in pension plans managed by a private pension entity, which provide post-employment benefits to employees. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date minus the fair value of plan assets. The defined be- nefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using market interest rates that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension obligation. In countries where there is no active market related to such obligations, market rates for government securities are used. Actuarial gains and losses arising from changes in actuarial assumptions are recognized within Carrying value adjustments in the period in which they arise. Past-service costs are recognized immediately in the statement of income, unless the changes to the pension plan are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, past-service costs are amortized on a straight-line basis over the vesting period. For defined contribution plans, the Company pays contributions to the pension plan administrators on a compulsory, contractual or voluntary ba- sis. The Company no longer has payment obligations once the contributions are paid. Contributions are recognized as employee benefit expense when due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. The Company's subsidiaries have a defined contribution plan for employees. Certain subsidiaries, however, have a defined benefit plan. The table below shows where the balances and activities related to post- -employment benefit are allocated in the consolidated financial statements. Rights recorded in the balance sheet with: Pension plan benefits Assets recorded in the balance sheet 2021 2020 215 139 215 139 Obligations recorded in the balance sheet with: Pension plan benefits 272 240 Post-employment healthcare benefits Liabilities recorded in the balance sheet 291 284 563 524 Expenses recognized in the statement of income with: Pension plan benefits Post-employment healthcare benefits Remeasurement with: Pension plan benefits - gross amount Deferred income tax and social contribution Deferred income tax and social contribution Pension plan benefits - net amount (a) Defined contribution pension plan 7 40 16 16 23 56 (42) (20) (23) 12 11 (53) (9) The Company and its Brazilian subsidiaries sponsor private pension plans available to all employees administered by Fundação Senador José Ermírio de Moraes (FUNSEJEM), a private, not for profit, pension fund. Under the 177 =#179terms of the regulations of the fund, the contributions of the employees to FUNSEJEM are matched by the sponsors in accordance with the level of remuneration of the employee. For employees whose remuneration is lower than the threshold established by the regulations, the Company matches the contributions that represent up to 1.5% of their monthly remuneration. For employees whose remuneration exceeds the threshold, the Company matches the contributions of employees that represent up to 6% of their monthly remuneration. Voluntary contributions can also be made to FUNSEJEM. Once the plan contributions are made, no additional contributions are required. (b) Defined benefit pension plan The Company has subsidiaries with defined pension plans in North America, South America and Europe, which follow similar regulatory standards. The defined benefit pension plans also offer health care and life insurance, among other benefits. The cost of the retirement benefits and the other benefits of the plan granted to employees are determined by the projected benefit method on a pro rata basis considering the length of service and the best expectations of management regarding the return on plan assets, salary adjustments, costs and mortality trends, and the age of retirement of employees. The amounts recognized in the balance sheet are determined as follows: Opening balance for the year Current service cost Finance cost (income) Past service cost and curtailments Re-measurements: Return on assets, excluding the amount included as finance income Losses (gains) arising from changes in demographic assumptions Losses (gains) arising from changes in financial assumptions Losses arising from experience Changes in the asset ceiling, excluding the amount included as finance cost Foreign exchange gains (losses) Contributions: Present value of funded and unfunded obligations 1,612 Fair value of plan assets Total (1,237) 11 38 (28) 1 50 (28) རྞྞསྐ༐ ཋ ཋཀ། Impact of the minimum requirement of the funds/asset 2021 2020 ceiling Total Total 10 385 327 11 11 1 11 30 1 (3) 1 23 38 16 16 16 (62) (5) (96) 108 (96) (2) (96) (1) (1) (19) 17 17 (6) (98) 16 (81) 17 (64) 16 99 (82) 17 17 64 Employer 6 6 6 (10) 2021 Present value of funded obligations Fair value of plan assets Deficit of funded plans 1,017 (1,079) -62 2020 1,266 (1,238) 28 Payments of the plans: Payment of benefits (94) 0 75 (19) (19) (50) 0 Closing balance for the year 1,569 (1,250) 320 28 348 385 Present value of non-funded obligations 383 348 Total deficit of defined benefit pension plans 321 376 Impact of the minimum funding requirement/assets ceiling 27 9 Assets and liabilities in the balance sheet 348 385 The changes in the defined benefit obligation and the fair value of the plan assets during the year were as follows: 178#180The defined benefit obligation and the plan assets, by country, are as follows: Present value of the obligation Fair value of plan assets Present value of non-financial obligations Impact of the minimum requirement of the funds/asset ceiling 2021 2020 Brazil 202 Europe 16 North America Uruguai North South Total Brazil Europe 798 1,016 48 17 (68) (1,011) (1,079) (59) America 869 (1,006) America Colombia Total 357 1,291 (199) (1,264) 134 16 (213) (63) (11) 17 (137) 158 27 78 302 4 384 77 267 4 348 27 27 10 10 161 94 89 4 348 (1) 94 130 158 385 The actuarial assumptions used were as follows: Discount rate Inflation rate Future salary increases Increases in future pension plans 2021 2020 Brazil Europe 8.55% 12.55% 3.25% 9.93% 2.82% 8.00% 3.25% North South America America 2.50% 10.02% 2.00% North South 0.00% 0.00% Total Brazil Europe 8.41% 6.88% 8.40% 5.06% 4.00% 3.90% 5.41% 2.77% 8.00% 3.92% 4.00% America America Colombia 2.50% 12.28% 6.50% 7.31% 2.50% 0.00% 0.00% 2.60% 2.50% 8.28% 4.31% 3.50% 3.75% Total (c) Post-employment benefits (pension and health care) The Company operates post-employment health care plans through in- direct subsidiaries in North America, VCNA, and in Europe, VCEAA. The accounting method, assumptions and frequency of evaluations are similar to those used for the defined benefit pension plans. Most of these plans are not funded. The obligations relating to these plans are included in the movement of the defined benefit obligations previously presented. 179 =#18127. Equity Accounting policy (i) Share capital Share capital is represented exclusively by common shares classified as equity. (ii) Dividends This is recognized as a liability in the Company's financial statements at year-end based on the Company's bylaws. Any amount that exceeds the minimum required, 25% of the profit for the year, is only recognized on the date it is approved by the stockholders at a General Meeting. When a Company presents a loss in the year, there is no dividend. (iii) Earnings per share Earnings per share are calculated by dividing the profit attributable to the controlling stockholders by the weighted average number of common sha- res during the year. The weighted average number of shares is calculated based on the periods in which the shares were outstanding. (iv) Statutory reserve and retained earnings reserve The statutory reserve is constituted by the appropriation of 5% of the net income for the fiscal year or remaining balance, limited to 20% of the capi- tal stock. Its purpose is to ensure the integrity of social capital. It can only be used to offset losses and increase capital. When the Company presents a loss in the year, there will be no legal reserve. The retained earnings reserve refers to the retention of the remaining balance of retained earnings in order to meet the business growth plan established in the Company's investment plan. (v) Government grants The tax incentive reserve is credited with tax incentive benefits, which are recognized in the income statement for the year and allocated to retained earnings for this reserve. These incentives are not included in the calcula- tion of the mandatory minimum dividend. (vi) Equity valuation adjustments The equity valuation adjustments include: (a) The effective portion of the cumulative net change in fair value of hedge instruments used in hedge of cash flow until the recognition of the cash flows that were hedged. (b) Cumulative translation adjustments with the exchange differences arising from the translation of the financial statements of foreign operations. (c) Effective portion with exchange differences of hedge of the Company's net investments in a foreign operation. (d) Actuarial losses (gains) and measures with retirement benefits. (a) Share capital On December 31, 2021 and December 31, 2020, the fully subscribed and paid-up capital of the Company was R$ 28,656, consisting of 18,278,789 thousand common shares. 180 =#182(b) Dividends During the one-year period ended December 31, 2021, the Company de- cided to pay its parent company Hejoassu Administração S.A. the amount of BRL 1,016 corresponding to dividends related to part of the balance of the Profit reserves account accumulated until December 31, 2021 and also resolved on the mandatory minimum dividends for the year 2021, in the amount of BRL 1,520 as detailed in the chart below. = 2021 2020 Net income (loss) attributable to controlling shareholders Legal reserve 6,400 (1,636) (320) Dividend calculation basis 6,080 Mandatory dividends distributed 1,520 Reversed dividends (40) Dividends distributed based on profits from prior years 1,016 800 Total distributions 1,016 760 Percentage of mandatory minimum dividend on net income for the year 25% 25% (c) Carrying value adjustments At January 1, 2020 Currency translation of investees located abroad Hedge accounting for net investments abroad, net of taxes Remeasurement of retirement benefits, net of taxes Hedge accounting for the operations of subsidiaries, net of taxes Fair value of financial assets through other comprehensive income Adjustment for hyperinflationary economies Adjustment to the fair value of shares, net of taxes Realization of other comprehensive results on the sale of investments Participation in other comprehensive results of investees Fair value measurement of the credit risk of investees At December 31, 2020 Attributable to the owners of the Company Currency Hedge accounting for net investments abroad, net of Hedge accounting for the operations of subsidiaries, net of taxes Note translation of investees located abroad 6,430 taxes (4,992) 3,062 (289) (636) (25) Fair value of available-for- sale financial Remeasurement of retirement benefits, net of (15) assets Shares fair value 235 (121) taxes (187) Adjustment for hyperinflationary economies Other comprehensive income Total 759 (161) 1,948 3,062 (289) (636) (169) (169) (25) 426 426 712 (173) 712 (173) (2) (2) 25 25 9,492 (5,281) (651) 210 418 (356) 1,185 (138) 4,879 181#183At January 1, 2021 Currency translation of investees located abroad Hedge accounting for net investments abroad, net of taxes Hedge accounting for the operations of subsidiaries, net of taxes Adjust the fair value of the shares, net of the tax Remeasurement of retirement benefits, net of taxes Adjustment for hyperinflationary economies Fair value measurement of the credit risk of investees Realization of other comprehensive results on the sale of investments Participation in other comprehensive results of investees At December 31, 2021 Note Currency translation of investees located abroad Hedge accounting for net investments abroad, net of taxes Hedge accounting for the operations of subsidiaries, net of taxes Attributable to the owners of the Company = Fair value of available-for- sale financial Remeasurement assets Shares fair value of retirement benefits, net of taxes Adjustment for hyperinflationary economies Other comprehensive income Total 9,492 621 (5,281) (12) 601 (651) 210 418 (356) 1,185 (138) 4,879 621 (12) 601 144 37 144 37 (3) (3) 583 583 (9) (9) (265) (265) (58) (58) 10,113 (5,293) (50) 207 297 (319) 1,768 (205) 6,518 (d) Non-controlling interests 2021 2020 2.788 2.604 Nexa Resources S.A. St Marys Cement Inc. Companhia Brasileira de Alumínio Nexa CJM 1.544 FI Nexa Perú Cementos Artigas S.A. Yacuces, S.L. Itacamba Cemento S.A. Acerías Paz Del Rio S.A. Outros 1.040 731 717 435 332 261 240 162 130 130 100 78 283 254 7.374 4,455 182#18428. Net revenue from products sold and services rendered Accounting policy Revenue represents the fair value of the consideration received or recei- vable from the sale of goods in the ordinary course of business of the sub- sidiaries. Revenue is shown net of value added tax, rebates and discounts after elimination of sales among consolidated companies. The subsidiaries recognize revenue when: (i) the amount of revenue can be measured reliably; (ii) is probable that future economic benefits will flow to the entity; and (iii) specific criteria have been met for each of the Company's and its subsidiaries' activities. The accounting recognition of revenue results from the amounts to be billed to customers in accordance with the methodology and prices established in each contract, adjusted to the amounts of energy actually generated, when applicable. These adjustments result from the CCEE mechanism that verifies the net exposure of the subsidiary Votener (sales, generation, pur- chases and consumption), called energy balance. The mechanisms explained above result in the recognition of gross reve- nue, at its fair value, presented net of any sales tax, to the extent that it is probable that economic benefits will flow to the indirect subsidiary Votener. (a) Reconciliation of revenue 2021 2020 = Revenue will not be reliably measured if all terms of sale are not resolved. The subsidiaries bases their estimates on historical results, taking into ac- count the type of customer, the type of transaction and the specificities of each agreement. Revenue recognition is based on the following principles: (i) Sales of products and service Revenue is shown net of value added tax, returns, rebates and discounts, after eliminating sales within the consolidated companies. (ii) Sale of surplus energy The Company's energy sales contracts are carried out in the free and re- gulated environments of Brazilian commercialization, being fully registered with CCEE, the agent responsible for accounting and settlement of the entire national integrated system (SIN). Supply of electrical energy Gross revenue Sales of products domestic market 26,810 17,300 Sales of products - foreign market 26,009 19,571 3,131 3,140 853 668 56,803 40,679 Taxes on sales, services and other deductions Net revenue (7,795) (5,296) 49,008 35,383 Services provided (b) Information on geographical areas in which the Company operates The geographical areas are determined based on the location of the cus- tomers. The net revenue of the subsidiaries classified by currency and destination, is as follows: (i) Revenue by destination Brazil United States Peru Argentina 2021 2020 23,905 17,508 5,760 4,740 4,182 2,537 2,668 1,491 183#1852021 2020 29. Expenses by nature Canada 2,549 1,789 Spain 1,117 789 Switzerland 902 540 2021 Turkey 780 480 Morocco 702 546 Uruguay 585 513 Luxembourg 526 388 Cost of products sold and services rendered General and Selling administrative Total Bolívia 455 357 Raw materials, inputs and consumables 24,301 Tunisia 387 337 Employee benefit expenses (a) 3,257 32 481 6 1,523 24,339 5,261 Japan 315 242 Depreciation, amortization and Singapore 309 399 depletion 3,466 48 123 3,637 Chile 307 259 Transportation expenses 3,157 67 5 3,229 Colombia 301 187 Outsourced services 1,928 83 797 2,808 Taiwan 289 148 Other expenses 1,825 190 387 2,402 Austria 241 180 37,934 901 2,841 41,676 Italia 122 78 Equador 84 46 2020 Belgium 74 157 Cost of products Alemanha Other countries 59 185 sold and 2,389 1,487 services General and rendered Selling administrative Total 49,008 35,383 Raw materials, inputs and consumables 16,393 25 (ii) Revenue by currency Employee benefit expenses (a) 3,072 436 1 16,419 1,196 4,704 Depreciation, amortization and 2021 2020 depletion 3,114 47 132 3,293 Real 22,867 17,052 Transportation expenses 2,518 48 2 2,568 US dollar 17,563 12,372 Outsourced services 1,617 83 747 2,447 Canadian Dollar 2,545 1,788 Other expenses 1,710 250 425 2,385 Argentine pesos 2,119 1,186 28,424 889 2,503 31,816 Euro 1,174 922 Moroccan Dirham 701 546 Turkish lira 594 351 Uruguayan peso 545 470 Bolivian 432 355 Dinars tunisia 386 337 Other currencies. 82 4 49,008 35,383 184 =#186(a) Employee benefit expenses 30. Other operating expenses, net 2021 2020 Salaries and bonuses Payroll charges Benefits 3,373 2,873 Note 2021 2020 1,151 1,122 737 709 Gain on investment sale 1.1 (b) 629 427 5,261 4,704 Loss on sale of fixed and intangible assets, net (104) (74) Electric power futures contracts 171 (54) Gain on purchase of investee 243 366 (i) Health care (post-retirement) The liability related to the health care plan for retired employees is stated at the present value of the obligation, less the market value of the plan assets, adjusted by actuarial gains and losses and past-service costs, in a manner similar to the accounting methodology used for defined benefit pension plans. The post-retirement health care obligation is calculated an- nually by independent actuaries. The present value of the post-retirement health care obligation is determined based on an estimate of the future cash outflow. Tax benefits Income from rentals and leasing Net income from waste sale Hedge gain Tax recovery 551 175 76 59 32 60 42 11 219 174 Expenses on not activatable projects Judicial provisions, net (647) (320) (232) (191) Reversal (constitution) of impairment of property, plant and equipment and intangible assets 18, 19 and 21 559 (2,778) Royalties on natural resources (45) (55) Impairment of investments 1.1 (jj) (827) (62) (94) 605 (2,294) Actuarial gains and losses arising from changes in actuarial assumptions are fully recognized within Carrying value adjustments in the period in which they arise. (ii) Employee profit sharing Provision is recorded to recognize the expenses related to employee profit sharing. This provision is calculated based on qualitative and quantitative targets established by management and recorded in the statement of inco- me as Employee benefits. Other expenses, net 185 =#18731. Finance results, net = 2021 2020 Accounting policy (i) Financial income (expenses) These comprise interest rates on loans and financial investments, monetary and exchange variation on assets and liabilities, linked to loans with a swap instrument, as a result of the exchange variation net of gains and losses on derivative financial instruments (swap contracts) and various discounts that are recognized in the income for the year on the accrual basis. (ii) Foreign exchange variations A foreign currency transaction will be initially recognized in the functional currency by applying the spot exchange rate between the functional cur- rency and the foreign currency on the transaction date to the amount in foreign currency. At the end of each reporting period, monetary items in foreign currency must be converted using the closing exchange rate. Foreign exchange variations arising from the settlement of monetary items or the translation of monetary items at rates different from those for which they were converted at the initial measurement during the period or in pre- vious financial statements will be recognized in the statement of income in the year in which they arise. Finance income Interest on financial assets 70 211 Income from financial investments 299 211 Fair value of borrowing and financing 163 72 Monetary updating of assets 52 27 Reversal of monetary restatement of provision 144 75 Discounts obtained 33 18 147 46 908 660 Other finance income Finance costs Interest on borrowing Capitalization of borrowing costs Award paid in bond buyback (tender offer) Monetary restatement of provision Fair value of borrowing and financing Borrowing fees Debt renegotiation charges (1,546) (1,386) 110 7 (70) (190) (326) (228) (127) (167) (48) (58) Interest and monetary restatement - Use of public assets (227) (324) Adjustment to present value CPC 12 (161) (135) Commissions on financial operations (82) (147) (42) (17) Charges on discount transactions Interest on silver streaming PIS/COFINS on financial results (70) (47) (37) (32) (76) (38) Income tax on remittances of interest abroad Other finance costs (28) (42) (284) (175) (3,014) (2,979) 4,386 (121) 4,386 (121) (505) (1,027) 1,775 (3,467) Results of derivative financial instruments Foreign exchange variation, net Finance results, net 186#18832. Tax benefits 33. Insurance The Company and its subsidiaries have tax incentives within certain state and federal industrial development programs. The state programs are ai- med at attracting industrial investments seeking regional decentralization, promoting employment and income generation, besides complementing and diversifying the industrial matrix of the states. These fiscal incentives are approved by the states in the form of percentage financing of up to 75%, presumed credit with a percentage of up to 95% and deferral of the payment of taxes or partial reductions of the amount due for imports of assets and inputs. The Company and its subsidiaries maintain civil liability policies for executi- ves and directors, in addition to insurance coverage for equity risks and loss of profits. Such policies have coverage, conditions and limits, considered by Management to be adequate to the inherent risks of the operation. 187 =#18934. Assets and liabilities classified as held for sale The result of subsidiary Acerias Paz del Rio, for the year ended December 31, 2021, in the amount of R$235, was reclassified from Continuing opera- tions to Discontinued operations according to the following table: Accounting policy Assets are classified as assets held for sale when their carrying amount is recovered, mainly through sale, and when the sale is considered highly probable. The asset or group of assets to be classified as held for sale shall be mea- sured on initial recognition at the lower of what its carrying amount would have been had it not been so classified and the fair value less costs to sell. If the asset or group of assets is acquired as part of a business combination, it must be measured at fair value less costs to sell. When the sale is expected to occur after one year, the entity shall measure the selling expenses at present value. Any increase in the present value of selling expenses that results from the passage of time must be presented in profit or loss as a financial expense. Depreciation of assets held for trading ceases when a group of assets is designated as held for sale. The assets and liabilities of the group of discon- tinued assets are presented in single lines in assets and liabilities. The breakdown by company of assets (related liabilities) held for sale is shown below: Continuing operations Net revenue from products sold and services rendered Cost of products sold and services rendered Gross profit Operating expenses (income) Selling General and administrative Other operating income (expenses), net Operating profit before equity results and finance results Finance results, net Finance income Finance costs Profit before income tax and social contribution Income tax and social contribution Current Deferred Profit from continuing operations Acerias Paz del Rio Votorantim Cimentos S.A. Companhia Nexa Resources Peru S.A.A December 31, 2021 Assets Liabilities 1,251 1,153 25 10 5 0 1,281 1,163 188 2021 1,995 (1,520) 475 (53) (113) 70 (96) 379 25 (101) (76) 303 (3) (65) 235 =#19035. Supplementary information - Business segments Adjusted EBITDA Note Net income (loss) for the year Industrial segments 2021 2020 7,120 (3,066) To provide a higher level of information, the Company opted to disclose financial information by business segments, considering the elimination of balances and transactions between companies in the same segment, befo- re: (i) the eliminations between business segments; and (ii) the elimination of investments held by holding companies. Additionally, the eliminations and reclassifications between the companies are highlighted, so that the net result corresponds to the consolidated fi- nancial information of the VSA, disclosed as supplementary information. This supplementary information is not intended to be in accordance and is not required by accounting practices adopted in Brazil or by IFRS. (a) Capital management The financial leverage ratios are calculated according to the information of the industrial segments, considering the accumulated results for 12 mon- ths, as loan covenants, and are summarized as follow: Plus (less): Continuing operations Equity in the results of investees Net financial results (460) (715) (1,803) 3,462 Income and social contribution taxes 3,326 1,593 Depreciation, amortization and depletion 3,637 3,180 EBITDA before other additions and exceptional items Plus: 11,820 4,454 Dividends received 189 142 Extraordinary items Discontinued operations Gain on sale of investments, net Impaiment of property, plant, equipment and intangible assets Provision for impairment of investments Net gain from the advantageous purchase of an investee Other Adjusted annualized EBITDA (A) Net debt Borrowing Lease liabilities Cash and cash equivalents, financial investments and derivative financial instruments (235) 13 (629) (427) (36) 2,802 827 (243) (366) (234) 119 11,459 6,737 20 25,004 25,065 1,551 858 (16,601) (14,662) 189 Net debt (B) Gearing ratio (B/A) 9,954 11,261 0.87 1.67 =#191(b) Balance sheet - business segments Assets Current Cash and cash equivalents, financial Votorantim Nexa Cimentos Resources Long steels Votorantim Holding and CBA Energia other Eliminations Total, industrial Votorantim segments 2021 Total, Finanças Eliminations consolidated investments and derivative financial instruments 5,399 4,349 1,797 132 79 5,080 16,836 82 16,918 Derivative financial instruments - put option 4,704 4,704 4,704 Trade receivables 1,344 1,326 698 87 380 70 (226) 3,679 3,679 Inventory 2,862 2,079 1,592 366 268 7,167 7,167 Taxes recoverable 1,038 446 294 10 29 785 2,602 107 2,709 Dividends receivable 72 955 (1,020) 8 297 305 Electric power futures contracts 845 845 845 Other assets 285 10,928 185 8,385 72 86 4 4,454 681 1,409 Assets classified as held-for-sale 25 5 1,151 356 12,218 100 (44) (1,290) 944 944 36,785 486 1,281 37,271 1,281 Non-current assets Long-term receivables 10,953 8,390 4,454 1,832 1,409 12,318 (1,290) 38,066 486 38,552 Financial investments and derivative financial instruments 818 1 28 847 847 Financial instruments Shares 21 2,780 2,801 2,801 Taxes recoverable 767 339 685 14 1 227 2,033 2,033 Related parties 4 25 57 152 (13) 225 225 Deferred income tax and social contribution 912 939 254 26 564 2,695 1 2,696 Judicial deposits 147 30 17 20 214 214 Electric power futures contracts 2,962 2,962 2,962 Other assets 691 3,339 40 50 115 20 916 916 1,395 1,091 40 2,963 3,858 7 12,693 1 12,694 190 =#192= 2021 Total, Votorantim Nexa Long steels Votorantim Holding and industrial Votorantim Total, Assets Cimentos Resources CBA (*) Energia other Eliminations segments Investments 1,085 1 205 3,376 Advance for investment property Property, plant and equipment 18,244 Intangible assets 9,706 10,728 6,995 5,151 496 33 37,808 58 426 (28,607) 13,868 58 Finanças Eliminations consolidated 6,510 (6,687) 13,691 58 35,078 35,078 998 Right to use assets arising from leases Biological assets 1,352 71 43 12 62 27 4 (1,033) 16,703 16,703 2 12 1 89 1,492 90 1,492 90 Total assets (*) Relates to long steel operations in Argentina. 33,726 19,190 7,489 554 6,401 42,255 (29,633) 79,982 6,511 (6,687) 79,806 44,679 27,580 11,943 2,386 7,810 54,573 (30,923) 118,048 6,997 (6,687) 118,358 2021 Liabilities and equity Total, Votorantim Nexa Cimentos Resources CBA Long steels Votorantim Holding and (*) Energia other Eliminations industrial Votorantim segments Total, Finanças Eliminations consolidated Current liabilities Borrowing 262 261 69 Lease liabilities 201 91 27 5 2 11 4 603 603 330 330 Derivative financial instruments 198 127 231 556 556 Confirming payable 1,546 1,301 558 3,405 3,405 Trade payables 3,606 2,298 656 204 377 19 (246) 6,914 6,914 Salaries and payroll charges 629 424 162 27 27 108 1,377 1,377 Taxes payable 349 360 78 111 9 603 1,510 117 1,627 Advances from customers 40 33 48 41 9 17 188 188 Dividends payable 844 100 142 74 1,520 (1,056) 1,624 1,624 Use of public assets 50 51 74 175 175 Electric power futures contracts 22 11 767 800 800 Deferred revenue silver streaming 185 185 185 Other 1,103 209 73 8,850 5,440 2,129 392 1,265 139 2,421 (1) 1,527 2 1,529 (1,303) Liabilities related to assets held-for-sale 12 1,151 19,194 1,163 119 19,313 1,163 8,862 5,440 2,129 1,543 1,265 2,421 (1,303) 20,357 119 20,476 191#193= 2021 Liabilities and equity Non-current liabilities Votorantim Nexa Cimentos Resources CBA Long steels Votorantim Holding and (*) Energia other Eliminations Total, industrial Votorantim segments Total, Finanças Eliminations consolidated Borrowing 12,132 9,222 3,037 Lease liabilities 1,167 19 18 7 10 10 24,401 24,401 1,221 1,221 Derivative financial instruments 415 1 110 526 526 Deferred income tax and social contribution 1,365 1,135 40 26 52 1,038 3,656 168 3,824 Related parties 23 62 2 3 (15) Provision 1,292 1,444 820 5 2 188 75 3,751 75 3,751 Use of public assets 662 86 944 1,692 1,692 Pension plan 399 1 163 563 563 Electric power futures contracts 46 24 2,993 3,063 3,063 Deferred revenue - silver streaming 637 637 637 Other 433 220 43 2 25 17,934 12,764 5,098 41 3,074 107 1,519 11 841 841 (4) 40,426 168 40,594 Total liabilities 26,796 18,204 7,227 1,584 4,339 3,940 (1,307) 60,783 287 61,070 Equity Total equity attributable to owners of the Company 15,587 7,523 4,501 499 3,471 50,633 Non-controlling interests 2,296 1,853 215 303 (32,324) 2,708 49,890 7,375 6,710 (6,686) (1) 49,914 7,374 Total equity 17,883 9,376 4,716 802 3,471 50,633 (29,616) 57,265 6,710 (6,687) 57,288 Total liabilities and equity 44,679 27,580 11,943 2,386 7,810 54,573 (30,923) 118,048 6,997 (6,687) 118,358 (*) Relates to long steel operations in Argentina. 192#194(c) Statement of income - business segments Votorantim Nexa Cimentos Resources CBA 2021 other Eliminations Total, industrial Votorantim segments Total, Finanças Eliminations consolidated Long steels Votorantim Holding and Energia Continuing operations Net revenue from products sold and services rendered 22,296 14,140 Cost of products sold and services rendered Gross profit (17,084) (10,616) 8,423 (6,799) 5,212 3,524 1,624 2,119 (1,516) 603 4,010 (3,960) 117 (56) (2,097) (**) 2,097 (**) 50 61 49,008 (37,934) 11,074 49,008 (37,934) 11,074 Operating income (expenses) Selling (700) (132) (42) (21) (6) (901) (901) General and administrative (1,243) (757) (338) (45) (117) (329) (2,829) (12) Other operating income (expenses), net 365 (238) 98 (11) 391 605 (2,841) 605 (1,578) (1,127) (282) (66) (128) 56 (3,125) (12) (3,137) Operating profit (loss) before equity results and finance results 3,634 2,397 1,342 537 (78) 117 7,949 (12) 7,937 Result from equity investments Equity in the results of investees 62 Realization of comprehensive results on the sale of investments 62 62 13 13 268 3,409 (3,312) 440 817 (672) 585 268 20 3,429 20 20 (3,312) 460 817 (672) 605 Finance results, net Finance income 429 191 110 25 14 134 903 5 Finance costs (1,565) (789) (462) (90) (21) (54) (2,981) (33) Results of derivative financial instruments Foreign exchange gains (losses), net 37 (31) (70) 4,450 4,386 (398) (116) (75) 27 57 (505) (1,497) (745) (497) (38) (7) 4,587 1,803 (28) Profit (loss) before income tax and social contribution 908 (3,014) 4,386 (505) 1,775 2,199 1,652 858 499 183 8,133 (3,312) 10,212 777 (672) 10,317 193 =#1952021 Votorantim Nexa Cimentos Resources CBA (*) Long steels Votorantim Holding and Energia other Eliminations Total, industrial Votorantim segments Total, Finanças Eliminations consolidated Income tax and social contribution Current (167) (658) (68) (213) (611) (1,717) (84) (1,801) Deferred (406) (155) 48 17 1 (1,114) (1,609) (21) (1) (1,631) Profit (loss) from continuing operations 1,626 839 838 303 184 6,408 (3,312) 6,886 672 (673) 6,885 Discontinued operations Loss from continuing operations 235 235 235 Profit (loss) for the period from continuing operations 1,626 839 838 538 184 6,408 (3,312) 7,121 672 (673) 7,120 Profit (loss) attributable to the owners of the Company 1,343 682 743 383 184 6,408 (3,341) 6,402 671 (673) 6,400 Profit (loss) attributable to non-controlling interests 283 157 95 155 29 719 1 720 Profit (loss) for the period 1,626 839 838 538 184 6,408 (3,312) 7,121 672 (673) 7,120 (*) Relates to long steel operations in Argentina. (**) Relates substantially to the net revenue from electric energy operations from Votener to CBA and VCSA. Continuing operations 2020 Total, Votorantim Cimentos Nexa Resources CBA Long steels Votorantim Holding and Energia other Eliminations industrial Votorantim segments Total, Finanças Eliminations consolidated Net revenue from products sold and services rendered 16,740 Cost of products sold and services rendered Gross profit (12,816) 10,097 (8,059) 5,411 (4,831) 1,180 (809) 3,588 (3,571) 76 (48) (1,710) (**) 1,710 (**) 3,924 2,038 580 371 17 28 35,382 (28,424) 6,958 1 35,383 (28,424) 1 6,959 Operating income (expenses) Selling (708) (129) (37) (12) (3) (889) (889) General and administrative (1,061) (673) (284) (35) (101) (335) (2,489) (14) (2,503) Other operating income (expenses), net (113) (2,906) 175 (3) 84 469 (2,294) (2,294) (1,882) (3,708) (146) (50) (17) 131 (5,672) (14) (5,686) 194#196Operating profit (loss) before equity results and finance results Result from equity investments 2020 Votorantim Nexa Cimentos Resources CBA (*) Long steels Votorantim Holding and Energia other Eliminations Total, industrial Votorantim segments Total, Finanças Eliminations consolidated 2,042 (1,670) 434 321 159 1,286 (14) 1 1,273 Equity in the results of investees 51 (3) 445 (1,411) 1,633 715 719 (707) 727 Finance results, net Finance income 281 80 136 17 12 143 (11) 658 Finance costs (1,349) (880) (415) (131) (20) (188) 11 Results of derivative financial instruments Foreign exchange gains (losses), net 279 2 (403) (2,972) (121) (7) ME (1) 660 (2,979) (121) (277) (545) (215) 3 (1,027) (1,027) (1,066) (1,343) (493) (107) (8) (445) (3,462) (4) (1) (3,467) Profit (loss) before income tax and social contribution 1,027 (3,013) (62) 214 437 (1,697) 1,633 (1,461) 701 (707) (1,467) Income tax and social contribution Current (375) (321) (52) (108) Deferred (215) 213 (766) (7) (1) (19) (43) 101 (900) (900) (693) 7 (686) Profit (loss) for the year from continuing operations 437 (3,121) (880) 99 417 (1,639) 1,633 (3,054) 708 (707) (3,053) Continued operations Loss from discontinued operations 1 (13) (12) (12) Profit (loss) for the semester attributed to shareholders 438 (3,121) (880) 86 417 (1,639) 1,633 (3,066) 708 (707) (3,065) Profit (loss) attributable to the owners of the Company 393 (2,646) (927) 56 425 (1,639) 2,702 (1,636) 707 (707) (1,636) Profit (loss) attributable to non-controlling interests Profit (loss) for the year 45 438 (475) 47 30 (8) (3,121) (880) 86 417 (1,639) (1,069) 1,633 (1,430) (3,066) 1 (1,429) 708 (707) (3,065) (*) Relates to long steel operations in Argentina. (**) Relates substantially to the net revenue from electric energy operations from Votener to CBA and VCSA. 195#197(d) Adjusted EBITDA - business segments Net revenue from products sold and services rendered Cost of products sold and services rendered Gross profit Operating income (expenses) Selling 2021 Total, Votorantim Nexa Long steel Votorantim Holding and industrial Votorantim Total, Cimentos Resources CBA 22,296 14,140 8,423 (*) 2,119 Energia other Eliminations segments Finanças consolidated 4,010 117 (2,097) (**) (17,084) (10,616) (6,799) (1,516) (3,960) (56) 2,097 (**) 49,008 (37,934) 49,008 (37,934) 5,212 3,524 1,624 603 50 61 11,074 11,074 (700) (132) (42) (21) (6) General and administrative Other operating income (expenses), net (1,243) (757) (338) (45) (117) (329) (901) (2,829) (901) (12) 365 (238) 98 (11) 391 605 (1,578) (1,127) (282) (66) (128) 56 (3,125) (12) (2,841) 605 (3,137) Operating profit (loss) before equity results and finance results 3,634 2,397 1,342 537 (78) 117 7,949 (12) 7,937 Plus: Depreciation, amortization and depletion - continuing operations EBITDA 1,666 5,300 1,385 496 58 5 26 3,782 1,838 595 (73) 143 Plus: 3,637 11,586 (12) 3,637 11,574 Dividends received 181 81 8 (81) 189 189 Exceptional items Impairment of property, plant and equipment and intangible assets 33 2 (71) Net gain on sale of investments 827 (625) 791 791 (625) (625) Gain from the advantageous purchase of an investee Other (243) (243) (243) (24) (46) (169) (239) (239) Adjusted EBITDA 5,247 3,784 1,721 595 8 184 (80) 11,459 (12) 11,447 (*) Relates to long steel operations in Argentina. (**) Relates substantially to the net revenue from electric energy operations from Votener to CBA and VCSA. 196 =#198Net revenue from products sold and services rendered Cost of products sold and services rendered Gross profit = 2020 Total, Votorantim Nexa Long steel Votorantim Holding and industrial Votorantim Total, Cimentos Resources CBA (*) Energia other Eliminations segments Finanças consolidated 16,740 10,097 5,411 1,180 3,588 76 (1,710) (**) 35,382 35,383 (12,816) (8,059) (4,831) (809) (3,571) (48) 1,710 (**) (28,424) (28,424) 3,924 2,038 580 371 17 28 6,958 6,959 Operating income (expenses) Selling General and administrative (708) (129) (37) (12) (3) (889) (889) (1,061) (673) (284) (35) (101) (335) (2,489) (14) (2,503) Other operating income (expenses), net (113) (1,882) (2,906) 175 (3) 84 469 (2,294) (2,294) (3,708) (146) (50) (17) 131 (5,672) (14) (5,686) Operating profit (loss) before equity results and finance results 2,042 (1,670) 434 321 159 1,286 (14) 1,273 Plus: Depreciation, amortization and depletion - continuing operations EBITDA 1,420 3,462 1,248 431 44 5 31 3,180 3,180 (422) 865 365 5 190 4,466 (14) 4,453 Plus Dividends received 129 11 11 Exceptional items Impairment of property, plant and equipment and intangible assets 215 2,561 Gain from the advantageous purchase of an investee 26 (366) Other Adjusted EBITDA (*) Relates to long steel operations in Argentina. 38 2 (38) 142 111 253 2,802 2,802 (366) (366) 29 (427) 91 (427) (427) 120 120 3,835 2,139 536 365 43 (144) (37) 6,737 97 6,835 (**) Relates substantially to the net revenue from electric energy operations from Votener to CBA and VCSA. 197#19936. Subsequent events The following is a summary of Alux's book balances on the transaction com- pletion date: = On January 31, 2022 (a) Settlement of the CO2 emission rights loan - VCSA In January 2022, the short-term loan for CO2 emission rights in the amou- nt of USD 45 million (R$ 268) was settled with CO2 emission rights. (b) Sale of investment - APDR In January 20, 2022, the Company concluded the sale of subsidiary APDR, in accordance with the intention agreement signed in November 2021 (Note 1.1 (jj)). This sale resulted in a net income of R$ 69 in the Company's results in 2022, mainly as a result of the realization of the exchange rate variation, previously recognized directly in the comprehensive income of sharehol- ders' equity. (c) Future sale agreement. - Nexa In January 21, 2022, subsidiary Nexa signed an Offtake Agreement (future sale agreement), in which it undertakes to sell 100% of the copper concen- trate that will be produced by the Aripuanã mine for a period of five years, at the market price, but subject to a price cap. (d) Acquisition of 80% of Alux In January 6, 2022, after complying with the respective conditions prece- dent, CADE's approval was obtained, without restrictions. On January 31, 2022, the acquisition of 80% of the share capital of Alux was completed. Cash and cash equivalents Accounts receivable Inventories Other assets Property, plant and equipment Trade payables Other liabilities assumed Acquired identifiable net assets 16 38 27 27 7 (33) (8) 74 Alux had shareholders' equity at fair value of R$134, due to net assets plus adjustments, resulting from the valuation and identification of assets and liabilities in accordance with IFRS 3 / CPC 15 (R1) - Business combination. The net assets at fair value and recognized on the acquisition date are shown below: Equity value of Alux Adjustments of purchase price allocation Purchase price allocation of property, plant and equipment Purchase price allocation of account receivable Deferred taxes on business combinations Equity value of Alux, at fair value On January 31, 2022 74 31 60 (31) 134 The acquisition cost included goodwill of R$25 related to the control pre- mium, as shown in the table below: Consideration transferred Cash paid on acquisition of Alux Value of the acquired 80% portion of Alux's shareholders' equity, at fair value Goodwill on expected future profitability On January 31, 2022 133 (108) 25 198#200As a result of the business combination carried out on January 31, 2022, we present below the balance sheet items at fair value: Carrying amount Adjustment Fair value (h) Reverse merge - VGE On February 3, 2022, indirect subsidiary VTRM was merged into subsidiary VGE. VTRM now holds the following assets in its equity at the time of the merger: Cash and cash equivalents 16 16 Accounts receivable Inventories Other assets 38 60 98 27 27 27 27 Property, plant and equipment 7 31 38 Trade payables (33) (33) Other liabilities assumed (8) Deferred taxes on business combinations Total equity 74 (31) 60 (8) (31) 134 (e) Repurchase of Voto 41 bonds through VCI - VCSA In 2022, the indirect subsidiary VCI repurchased and canceled the balance of USD 16 million of principal related to its bonds maturing in 2041. (f) Use of a Committed Credit Revolving - VCSA During January and February 2022, the indirect subsidiary St. Marys made further withdrawals from the available Committed Credit Facility in the amount of USD 57 million, due in August 2024. The approximate amount of USD 187 million remains available to VCSA's subsidiaries for further withdrawals, if necessary. (g) Capital increase in subsidiary VCI - VCSA During January and February 2022, the direct subsidiary VCSA carried out capital increases in the indirect subsidiary VCI in the total amount of R$100 (USD 19 million). (i) Interest of 66.6667% in the capital stock of CBA Energia, whose generation assets include UHE Campos Novos and UHE Barra Grande, corresponding to 100% of its preferred shares; (ii) Interest of 66.6667% in Pollarix's capital stock, whose generation assets include UHE Amador Aguiar I and II (Consórcio Capim Branco), UHE Picada, UHE Igarapava (Consórcio Igarapava) and UHE Campos Novos, corresponding to 100% of the preferred shares issued by it; (iii) Interest of 100% in Votener's capital stock, corresponding to 16,438,442 shares issued by it. As a result of the reverse merger, the amount of 992,547 shares that VGE owned, issued by VTRM, was canceled and replaced by an equal number of shares of VTRM and were attributed to VSA. In addition, as a result of the as- sets merged into VTRM, 612,874,904 new VTRM common shares were issued, which were also assigned to VSA. The equity value attributed to VGE's assets (excluding the value of the interest held by VGE in VTRM) was R$2.8 billion. (i) Approval of the distribution of dividends through the VSA On February 10, 2022, the Company resolved to its parent company Hejoassu Administração S.A., the amount of R$ 734 corresponding to dividends related to part of the balance of the Profit Reserves account, accumulated from previous years. The amount was fully paid on February 24, 2022. 199 =#201(j) Distribution of dividends - Nexa On February 15, 2022, the Board of Directors of subsidiary Nexa approved, subject to ratification by the Company's Shareholders, at the 2023 annual shareholders' meeting in accordance with Luxembourg laws, a distribution in dividends to the Company's shareholders of approximately R$ 279 to be paid on March 25, 2022. (k) Redemption of total Senior Notes S.A.A. (Nexa Peru) - Nexa Resources Perú On February 24, 2022, indirect subsidiary Nexa Peru announced the early redemption and cancellation of all 4.625% Senior Notes due in 2023. The aggregate principal amount of the Notes is USD 128 million. The Notes will be redeemed on March 28, 2022 at a price equal to the greater of (i) 100% of the outstanding principal amount of the Notes, and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes. Notes to be redeemed discounted to the redemption date semi-annually at the applicable Treasury Rate plus 45 basis points, in each case plus accrued and unpaid interest and additional amounts, if any, but excluding the redemption date, in accordance with the provisions of the deed that governs the Notes. (1) Proposal for potential acquisition of CCR shares On March 23, 2022, the Company, together with Itaúsa S.A., formalized the terms of the proposal for the potential acquisition of the entire stake of Andrade Gutierrez Participações S.A. (AG) in CCR S.A. (CCR). The offer, already accepted by AG, contemplates the acquisition of 14.9% of the capital of CCR, representing an amount of R$ 4.1 billion, of which VSA will invest R$ 1.3 billion. In the end, considering VSA's current interest of 5.8% in CCR, the Company will have approximately 10.3% of CCR's capital. (m) Merger of CESP Shares by VTRM On March 25, 2022, at the conclusion of the corporate restructuring des- cribed in Note 1.1 (hh), VTRM merged all of CESP's shares, excluding its own shares and CESP's treasury shares. As a result, VTRM issued new shares, which were attributed to CESP's shareholders, replacing the merged shares issued by it. With the conclusion of the transaction, the Company now holds a 37.74% interest in the capital stock of VTRM. On March 28, 2022, VTRM changed its corporate name to Auren Energia S.A., and its shares are traded on the stock market under the ticker AURE3. = 200#202Independent auditor's limited assurance report on the non-financial information included in the 2021 Annual Report To the Board of Directors and Stockholders Votorantim S.A. designing, implementing and maintaining internal controls over the signi- ficant information for the preparation of the information included in the Annual Report, which is free from material misstatement, whether due to fraud or error. = São Paulo-SP Introduction We have been engaged by Votorantim S.A. ("Company" or "Votorantim") to present our limited assurance report on the non-financial information included in the 2021 Annual Report of Votorantim for the year ended December 31, 2021. Our limited assurance does not cover prior-period information, or any other information disclosed together with the 2021 Annual Report, including any incorporated images, audio files or videos. Responsibilities of the management of Votorantim The management of Votorantim is responsible for: ▸ selecting or establishing adequate criteria for the preparation and pre- sentation of the information included in the 2021 Annual Report; ▸ preparing the information in accordance with the criteria and guidelines of the Global Reporting Initiative (GRI-Standards) and with the basis of preparation developed by the Company; Independent auditor's responsibility Our responsibility is to express a conclusion on the non-financial informa- tion included in the 2021 Annual Report, based on our limited assurance engagement carried out in accordance with the Technical Communication CTO 01 - Issuance of Assurance Reports related to Sustainability and Social Responsibility, issued by the Federal Accounting Council (CFC), based on the Brazilian standard NBC TO 3000, "Assurance Engagements Other than Audit and Review", also issued by the CFC, which is equivalent to the inter- national standard ISAE 3000, "Assurance engagements other than audits or reviews of historical financial information", issued by the International Auditing and Assurance Standards Board (IAASB). Those standards require that the auditor complies with ethical requirements, independence requi- rements, and other responsibilities of these standards, including those regarding the application of the Brazilian Quality Control Standard (NBC PA 01) and, therefore, the maintenance of a comprehensive quality control system, including documented policies and procedures on the compliance with ethical requirements, professional standards and relevant legal and regulatory requirements. Moreover, the aforementioned standards require that the work be planned and performed to obtain limited assurance that the non-financial infor- mation included in the 2021 Annual Report, taken as a whole, is free from material misstatement. A limited assurance engagement conducted in accordance with the Brazilian standard NBC TO 3000 and ISAE 3000 mainly consists of making inquiries of management and other professionals of Votorantim involved in the prepa- 201#203ration of the information, as well as applying analytical procedures to obtain evidence that allows us to issue a limited assurance conclusion on the infor- mation, taken as a whole. A limited assurance engagement also requires the performance of additional procedures when the independent auditor becomes aware of matters that lead him to believe that the information disclosed in the Annual Report taken as a whole might present significant misstatements. The procedures selected are based on our understanding of the aspects related to the compilation, materiality, and presentation of the information included in the 2021 Annual Report, other circumstances of the engage- ment and our analysis of the activities and processes associated with the significant information disclosed in the 2021 Annual Report in which signifi- cant misstatements might exist. The procedures comprised, among others: (a) planning the work, taking into consideration the materiality and the volume of quantitative and qualitative information and the operating and internal control systems that were used to prepare the information included in the 2021 Annual Report; (b) understanding the calculation methodology and the procedures adop- ted for the compilation of indicators through inquiries of the managers responsible for the preparation of the information; (c) applying analytical procedures to quantitative information and making inquiries regarding the qualitative information and its correlation with the indicators disclosed in the 2021 Annual Report; and (d) when non-financial data relate to financial indicators, comparing these indicators with the financial statements and/or accounting records. The limited assurance engagement also included the analysis of the com- pliance with the guidelines and criteria of the Global Reporting Initiative (GRI-Standards) and the provisions established in the basis of preparation developed by the Company. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our limited assurance conclusion. Scope and limitations The procedures applied in a limited assurance engagement vary in nature and timing and are less detailed than those applied in a reasonable assu- rance. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the level that would be obtained in a reasonable assurance engagement. If we had performed a reasonable assurance engagement, we might have identified other matters and possi- ble misstatements in the information included in the 2021 Annual Report. Therefore, we do not express an opinion on this information. Non-financial data are subject to more inherent limitations than financial data, due to the nature and diversity of the methods used to determine, cal- culate and estimate these data. Qualitative interpretations of the relevance, materiality, and accuracy of the data are subject to individual assumptions and judgments. Furthermore, we did not consider in our engagement the data reported for prior periods nor future projections and goals. The preparation and presentation of non-financial information and indi- cators followed the definitions of the basis of preparation developed by the Company and the guidelines of the Global Reporting Initiative (GRI- Standards) and, therefore, the information included in the 2021 Annual Report does not have the objective of providing assurance with regard to the compliance with social, economic, environmental or engineering laws and regulations. However, the aforementioned standards establish the pre- sentation and disclosure of possible cases of non-compliance with such regulations when sanctions or significant fines are applied. Our assurance report should be read and understood in this context, inherent to the crite- ria selected and previously mentioned in this paragraph. = 202#204Conclusion Based on these procedures performed, described herein, and on the evi- dence obtained, no matter has come to our attention that causes us to believe that the non-financial information included in the 2021 Annual Report of Votorantim has not been prepared, in all material respects, in accordance with the criteria of the basis of preparation and guidelines of the Global Reporting Initiative (GRI-Standards). São Paulo, April 5, 2022 PricewaterhouseCoopers Auditores Independentes Ltda. CRC 2SP000160/0-5 Maurício Colombari Contador CRC 1SP195838/0-3 203 =#205Credits and Corporate information Credits General Coordination Finance and Investor Relations Department Débora Oliveira Mariana Mayumi Oyakawa Nicolle Amorim Sergio Malacrida Technical adviser Resultante Consultoria Writing, editing and proofreadig KMZ Conteúdo Graphic design Pierre Design Editorial Microsite blendON External Assurance PricewaterhouseCoopers Images Bruno Mooca (Votorantim S.A., Altre and CoE) Portfolio companies's image library Translation (english) Claudia Gustavsen Typeface Votorantim Sans April de 2022 Corporate Information Votorantim S.A. Rua Amauri, 255 - 13th floorr São Paulo (SP) - Brazil Zip code: 01448-000 Phone: +55 11 3704-3300 Visit the Votorantim website CoE Av. Manuel Bandeira, 291 | 1st floor, Conjunto 21B, bloco B São Paulo (SP) - Brazil Zip code: 05317-020 Rodovia Curitiba/Rio Branco do Sul, 1.303 Curitiba (PR) Brazil Zip code: 82130-570 Phone: +55 41 3388-5150 Jirón Vittore Scarpazza Carpaccio, 250 - int. 305 San Borja (Lima) – Peru Phone: +51 715-7600 204 =