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Investor Presentaiton

112 FINANCIAL CAPITAL ECONOMIC AND FINANCIAL PERFORMANCE M. Dias Branco achieved R$ 7.8 billion net revenue in 2021, higher than R$ 7.3 billion recorded in 2020, with 25.8% increase in average price in the period, while sales volume declined 14.3%, after the strong increase in demand experienced during social isolation in 2020. Net revenue (R$ million) Sales volume (thousand/t) 7,814.0 7,252.5 1,978.6 2,179.8 2,164.5 1,701.6 1,419.1 415.7 450.2 456.4 439.9 356.4 GRI 103-2, 103-3 | 201 Average price (R$/kg) 1,986.9 4.8 4.9 1,702.9 4.4 4.1 4.2 3.7 4.6 2021 INTEGRATED ANNUAL REPORT As a result, the Company recorded R$ 683.9 million EBITDA (-29.8% versus 2020), with 8.8% EBITDA margin (-4.6 p.p. versus 2020) and R$ 505.0 million net income (-33.9% versus 2020). The decline versus 2020 is due to the increase in commodity prices in US dollars, the Brazilian real depreciation, the drop in volumes and non-recurring tax credits that had a higher positive impact on the result in 2020. EBITDA (R$ million) 974.3 EBITDA Margin (%) 192.2 47.4 286.6 167.2 182.7 683.9 11.3% 3.2% 13.4% 13.1% 8.5% 8.4% 8.8% Net Income (R$ million) 209.0 196.6 151.1 142.3 15.0 763.8 505.0 4Q20 1Q21 2Q21 3Q21 4Q21 2020 2021 4Q20 1Q21 2Q21 3Q21 4Q21 2020 2021 4Q20 1Q21 2Q21 3Q21 4Q21 2020 2021 4Q20 1Q21 2Q21 3Q21 4Q21 2020 2021 4Q20 1Q21 2Q21 3Q21 4Q21 2020 2021 4Q20 1Q21 2Q21 3Q21 4Q21 2020 2021 In line with the strategy of profitable growth and under a scenario of unfavorable exchange rate effects and high prices of commodities, the Company focused its efforts throughout the year on launching higher value- added products and repricing, in addition to capturing productivity gains. 2021 was marked by structural reductions in sales and administrative expenses, as a result of the successful execution of productivity and efficiency programs, carried out through Multiplier Program in 2020 and the organizational redesign in 2021. Selling and administrative expenses (% NR) Administrative expenses Sales expenses (% NR) (% NR) 25.7% 23.6% 23.6% 24.3% 21.0% 21.7% 22.1% 17.6% 16.6% 16.8% With operating cash generation at R$ 959.7 million in 2021 (+41.3% versus 2020), the Company ended the period with R$ 1.6 billion in cash and gross debt of R$ 1.8 billion, resulting in a leverage (net debt-to- EBITDA in the last 12 months) of 0.2x. A highlight was the AAA Stable Outlook Ratingreaffirmed by Fitch for the 4th consecutive tear. 3.6% 3.8% 3.1% 3.0% 2.7% Eusébio/CE 2017 2018 2019 2020 2021 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21
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