SUSTAINABILITY REPORT 2021

SUSTAINABILITY REPORT 2021 Financial and Operational Performance GRI 102-45, GRI 203-1, GRI 203-2, GRI 207-4, GRI 412-3 Portobello Even in the face of the pandemic challenges, this was an exceptional year for Portobello, which made progress in all the segments in which it operates. According to Anfacer, the construction industry grew by 12.2% in volume, and data from Abramat point to an expansion of 37.9% in revenue. Retail sales of construction materials, an essential segment for the company's business model, recorded a rise of 4.6% (Cielo). In all comparisons with the sector, Portobello had more robust results, a scenario that led the company to expand its market share. In 2021, Portobello operated at 100% of its production capacity. The expressive growth came from the expansion of volume sold, new products that added value to the mix offered, price increases and a more favorable exchange rate, which impacted gains in dollar terms. These attributes benefited the adjusted gross margin, which reached 43%, even in a context of strong cost pressure, especially energy. The positive financial results have stimulated investments that will turn the operation even more robust. During the year, BRL 114.8 million were allocated to the expansion of the Portobello Shop network and the expansion of the productive capacities of the plants in Tijucas (SC) and Marechal Deodoro (AL), as well as Portobello America, which will have a factory in 2023 and received funds for the architectural project, earthworks and the ordering of part of the factory equipment. Some competitive advantages favored operations in 2021 and will continue to positively impact the business. Portobello America has two distributors in the US, which expand its presence in the North American market and adds dollar revenue to the organization. Operating in retail, with its own sales channel, in addition to bringing the benefits inherent to the format itself, brings Portobello closer to the end customer and architects, helping to measure consumer behavior and guide business strategies. Added to these factors is the significant volume of exports, which, together with the sales made by Portobello America, represented 21% of revenue. The company has also been consolidating its digital sales channel, which will be reinforced next year. Portobello projects a warm 2022, impacted by the performance of civil construction in 2020, which generates reflexes in the construction materials segment where it operates, two years later, duration of a work. In other words, the demand is already set. There will be no increase in volume, as the entire sector has been operating at 100% of its capacity, and investments in production expansion, underway at Portobello and competitors, will be completed in 2023 and 2024. Despite stability in volume, a revenue growth is projected, as a result of the prices increase and diversification, with the expansion of the presence of products with higher added value in the portfolio. NET REVENUE: BRL 1.912 billion (+43.6%) Portobello: +32.5%, to BRL 904.7 million Portobello Shop: +60.6%, para BRL 632.6 million Portobello América: +49.4%, to BRL 175.4 million Pointer: +45.1%, to BRL 269.8 milhões ADJUSTED AND RECURRING EBITDA: BRL 365.4 million (+109.3%) ADJUSTED AND RECURRING NET INCOME: BRL 188.0 million (+117.8%) LOWEST LEVERAGE IN HISTORY: Net Debt/ Adjusted and Recurring EBITDA ratio of 1.6x against 2.3x in 2020 MESSAGE FROM THE CHAIRMAN PORTOBELLO STRATEGY GOVERNANCE THE REPORT SUSTAINABILITY AT PORTOBELLO SOCIAL ENVIRONMENTAL ECONOMIC GRI CONTENT INDEX 77

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