Sustainability Report 2021 Vivara

18 Factory highlights In our factory in Manaus, the expansion started with the adaptation of spaces and the imple- mentation of a new work shift, which increased by 50% the number of employees. We signifi- cantly increased the product mix, both in the development of new jewelry and in factory pro- duction, which exceeded the previous year's pro- duction by 50%. Our goal is to have increasingly frequent launches, with contemporary collec- tions that meet our customers' demands. This effort led to an increase in the share of the national manufacturing of the products, maintaining the strategy of producing more and more jewelry of all categories in our factory. In the year, we increased to 69.63% the percent- age of products received from Manaus in our stores, 1.19 percentage point more than in the previous year. Life VIVARA New concept of Life by Vivara stores Celebrating the brand's ten years with significant expansion of points of sale, the Life by Vivara concept stores opened in 2021 were planned as a playful, sophisticated, and instagrammable environment that connects with the affective memories created by our products. The new layout was designed to invite experimentation, encouraging the public to explore all the diversity of products inside the store. To create a dynamic consumer journey, the envi- ronment was divided into two integrated spaces. The hot zone marks the place where the cus- tomer is surprised by luminous icons and a huge mirror on the ceiling. Through the transition of materials and colors, consumers are led to the second environment, where they find the salmon tone of a giant kaleidoscope so as to dive into the magical atmosphere of our jewelry world. Life Value creation 103-2 | 103-3 | 201-1 The pandemic brought a challenging scenario, but rapidly our teams and leaderships have mobilized so that together we presented the best solutions to our customers and investors. Our efforts to create effective, transforming, and agile solutions achieved breakthrough results in 2020 and allowed our business ex- pansion plan for 2021 to be assertively put into practice. We closed the year with a 16% market share, an increase of 2.9 percentage points in 12 months, and 4.6 percentage points in 24 months, which should continue with the opening of our points of sale, intensifying the growth curve. In addition to investing in our organic growth, we are attentive to opportu- nities for consolidation in the Brazilian jewelry market, both to reach new audiences and to supplement our product base. Our expansion plan plus the actions that be- lieve on the omnichannel approach and the digitalization investments provided gross revenue, net of returns, of R$1.84 billion, a growth of 23.7% when compared to 2019, and of 37.7% when compared to 2020. Same store sales (SSS) for the period was 16.1% compared to 2019, and 32.1% compared to 2020. We maintained very significant levels of profitability and operating cash genera- tion, even with the massive investment in our strategic initiatives. We invested over R$100 million throughout the year in stores, factory, efficiency, and technology, and we are com- mitted to accelerating investments in our stra- tegic pillars in the coming years. 1,489,872 1,338,142 8.6% -12.2% 1,842,455 32.1% 2019 2020 2021 Gross revenue (net of returns) SSS (physical stores + e-commerce) Gross profit in 2021 totaled R$991.5 million, up 24.3% in comparison to 2019, and 38.2% compared to 2020, while gross margin stood at 67.6%, in line with the Company's healthy profit- ability levels. Gross profitability was temporarily affected by the increase in headcount and gener- al expenses at the factory due to higher insourc- ing of production and expansion of the organic volume of production. 797,745 717,483 991,478 68.5% 68.1% 67.6% SUSTAINABILITY REPORT 2021 VIVARA 2019 2020 2021 Gross profit - Gross margin SUSTAINABILITY REPORT 2021 VIVARA 19

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