Earnings Release

2Q21

Videoconference in Portuguese

(simultaneous translation)

Monday, August 16, 2021

3:00 p.m. (São Paulo time) 2:00 p.m. (NY time)

Webcast:Click here

Contacts:

Thiago da Costa Silva

Investor Relations Officer

Telephone: +55 (11) 98477-2704

Site:https://ri.ambipar.com/

E-mail address: ri@ambipar.com

2Q21 HIGHLIGHTS

(comparisons vs 2Q20)

Gross Revenue reaches R$408.7 million, growth of 126.4%

EBITDA records R$97.2 million, expansion of 108.1%, EBITDA margin of 27.3% Net Income of R$40.6 million, an increase of 234.8%, net margin of 11.4% Net debt (gross debt less cash) of R$961.4 million

35.5% of gross revenue comes from the foreign market, an expansion of 7.9 p.p.

MESSAGE FROM MANAGEMENT

In the second quarter of 2021, we continued to execute our growth plan at an accelerated pace. There were 7 acquisitions, two from Response and five from Environment.

Resonse acquired EMS, an American company operating in the states of New York, Pennsylvania and North Carolina, and the acquisition of the remaining stake (50%) in Suatrans Chile with a strong presence in South America.

At Environment, the following were acquired:

Disal has been operating for over 40 years with integrated solutions for environmental management in Chile, Peru and Paraguay, regions where it has a market leadership position and technological vanguard. Its focus is on total industrial waste management services, providing solutions for the collection and treatment of solids, liquids and hazardous waste. It has a diversified portfolio of blue chips clients and long-term contracts for the mining, construction and food sectors, among others.

Boomera has been operating in the Brazilian market for 9 years, providing circular economy solutions, such as the recovery of complex waste, especially flexible packaging plastics, and the manufacture of recycled products. Its solutions also undergo impact actions in partner communities.

Metal Ar, has been operating for 54 years in the management, handling and treatment of waste, co-processing, recycling, drilling, loading and transport of rock with a main focus on the mining sector. It has its own mine management system, equipment with specific technologies that ensure efficiency, safety and quality in the services provided in operations in São Paulo, Minas Gerais, Goiás, Bahia and Alagoas.

Centroeste has been operating for 14 years in the management and treatment of hazardous, non-hazardous, recyclable and composting waste. It has processes and controls that guarantee the traceability of waste from the beginning to the end of its customers' production chain. It is the market leader in Mato Grosso, where it has three operational bases, located in Cuiabá, Rondonópolis and Sinop.

Ecológica Nordeste was founded in 2013 in the city of Salvador, started its operations offering waste management services, which include the collection, transport and disposal of class I and II waste. It is considered one of the pioneer companies in its segment in the region, when it started its first waste crushing and blending unit for co-processing with state-of-the-art technology in the municipality of Simões Filho, Bahia.

In July 2021, we announced a partnership with Gisele Bündchen, who will join the Company's Sustainability Committee, whose objective is to promote the strategic management of businesses and solutions with a focus on sustainability. Gisele will also work to promote the institutional image of the Ambipar brand and its products and services, especially in the ESG (Environmental, Social and Governance) pillars developed by the Ambipar Group.

We continued with our carbon credit project, which consists of monetizing the reduction of emissions by valuing waste under the concept of circular economy, that is, reincorporating waste into the production chain. And still sequestering greenhouse gases implementing sustainable management in agribusiness. We will certify every opportunity in our operations and use tokens with public and unique registration via Blockchain, traceable and backed, ensuring the genuineness of the operation.

Earnings Release 2Q21

4

Gross revenue reached R$408.7 million in 2Q21, an increase of 126.4% versus 2Q20 and 37.4% compared to 1Q20, due to new contracts at Environment and capturing the scalability with the increase in the Response bases, which resulted in an increase in the number of contracts and emergencies. 35.5% of the revenue comes from the foreign market.

EBITDA in 2Q21 was R$97.7 million, an increase of 109.8% compared to 2Q20 and 34.8% compared to 1Q21. The EBITDA margin was 27.5%.

Net income reached R$41.3 million in 2Q21, an increase of 241.3% versus 2Q20 and 28.0% compared to 1Q21. The net margin reached 11.9%.

We ended the quarter with net debt (gross debt less cash) of R$964.3 million, the increase mainly due to funding for the acquisition of Disal, demonstrating Management's commitment to growth and leverage in order not to miss opportunities.

Thank you very much to all our stakeholders, 2Q21 demonstrates the pace at which we ended this first half of 2021 and we will still have many new features in the near future.

ENVIRONMENT

Income Statement (R$ million)

2Q20

1Q21

2Q21

2Q21X2Q20

2Q21X1Q21

Gross revenue

88.6

135.9

193.5

118.3%

42.4%

Waste management

67.2

108.7

165.1

145.6%

52.0%

Hazmat logistics

16.2

21.6

22.3

37.4%

3.3%

CTRs

5.2

5.6

6.1

18.0%

8.5%

Deductions

(12.9)

(17.8)

(27.7)

113.9%

55.3%

Net revenue

75.7

118.1

165.9

119.1%

40.5%

Cash COGS

(52.7)

(80.7)

(114.4)

117.0%

41.7%

Personnel

(28.4)

(43.6)

(58.2)

105.4%

33.6%

Third parties

(5.0)

(11.1)

(16.2)

225.1%

46.1%

Fuel

(3.8)

(5.6)

(8.3)

120.6%

50.4%

Freight

(4.3)

(5.3)

(6.0)

41.0%

14.7%

Maintenance

(3.6)

(5.3)

(9.6)

166.6%

79.6%

Others

(7.7)

(9.9)

(15.9)

106.7%

61.6%

Cash SG&A

(1.6)

(4.5)

(5.5)

240.5%

21.6%

EBITDA

21.4

32.8

45.9

115.1%

40.1%

EBITDA margin (%)

28.2%

27.8%

27.7%

-0.5 p.p.

-0.1 p.p.

Additional Gross Revenue Information

2Q20

1Q21

2Q21

2Q21X2Q20

2Q21X1Q21

Volume - CTRs ('000 tons)

48.3

51.0

43.2

-10.7%

-15.4%

Volume - Hazmat logistics ('000 tons)

81.9

100.5

125.1

52.8%

24.5%

# of contracts Waste Management - EOP

17

66

75

341.2%

13.6%

Net Revenue

In 1Q21, net revenue was R$165.9 million, an increase of 119.1% versus 2Q20 and 40.5% compared to 1Q21. This growth is mainly due to the increase in the number of total waste management contracts focused on recovery (17 in 2Q20, 66 in 1Q21 and 69 in 2Q21). The increase of 44 contracts (1Q21) is a result of the merger of AFC, a company acquired in January/21, Metal Ar added 6 new contracts. and addition of 3 new Environment contracts.

Cost of Service Provided and General and Administrative Expenses (Cash)

The cost of services provided (cash) totaled R$114.4 million in 2Q21, an increase of 117% versus 2Q20. This increase is mainly due to third parties, others and personnel due to the mobilization of new contracts and acquisitions that have a greater representation of these items in their cost structures.

Earnings Release 2Q21

5

EBITDA

EBITDA was R$45.9 million in 2Q21, an expansion of 115.1% compared to 2Q20 and 40.1 versus 4Q20, with a margin of 27.7%.

RESPONSE

Income Statement (R$ million)

2Q20

1Q21

2Q21

2Q21X2Q20

2Q21X1Q21

Gross revenue

91.9

161.6

215.2

134.1%

33.2%

Brazil

42.1

59.5

70.1

66.5%

17.8%

International

49.8

102.0

145.1

191.2%

42.1%

Deductions

(10.6)

(17.3)

(24.8)

135.1%

43.7%

Net revenue

81.4

144.3

190.3

133.9%

31.9%

Cash COGS

(53.0)

(97.5)

(132.1)

149.0%

35.5%

Personnel

(35.8)

(57.5)

(73.0)

104.0%

26.9%

Third parties

(5.2)

(13.4)

(19.8)

276.9%

47.3%

Rent

(1.5)

(5.1)

(7.3)

376.1%

42.8%

Maintenance

(0.7)

(5.0)

(8.6)

1216.3%

71.7%

Fuel

(0.2)

(3.7)

(5.4)

2790.9%

45.3%

Others

(9.7)

(12.7)

(18.0)

86.6%

41.7%

Cash SG&A

(3.0)

(6.9)

(7.0)

134.9%

1.4%

EBITDA

25.4

39.9

51.3

102.2%

28.5%

EBITDA margin (%)

31.2%

27.7%

26.9%

-4.2 p.p.

-0.7 p.p.

Net Revenue

Net revenue totaled R$190.3 million in 2Q21, an expansion of 133.9% versus 2Q20 and 31.9% compared to 1Q21. In Brazil, the 17.8% growth compared to 1Q21 is mainly due to the increase in the number of incidents. The 42.1% increase in International revenue is substantially due to the increase in occurrences in the USA and UK operations.

Cost of Service Provided and General and Administrative Expenses (Cash)

The cost of services provided (cash) was R$132.1 million in 2Q21, an increase of 149.0% versus 2Q20. This increase is practically in line with the increase in net revenue.

EBITDA

EBITDA recorded R$51.3 million in 2Q21, an increase of 102.2% compared to 2Q20 and 28.5% versus 1Q21, with a margin of 26.9%. The reduction in the margin comes from the consolidation of the acquired companies that have lower margins than the operations in Brazil.

Earnings Release 2Q21

6

CONSOLIDATED

Demonstração de Resultado (R$ milhões)

2T20

1T21

2T21

2T21X2T20 2T21X1T21

Receita Bruta

180.6

297.4

408.7

126.4%

37.4%

Deduções

(23.5)

(35.1)

(52.5)

123.4%

49.6%

Receita Líquida

157.1

262.4

356.2

126.8%

35.8%

Custo Caixa

(105.8)

(178.2)

(246.5)

133.1%

38.3%

SG&A Caixa

(4.6)

(11.4)

(12.5)

172.2%

9.4%

EBITDA

46.7

72.7

97.2

108.1%

33.7%

Margem EBITDA (%)

29.7%

27.7%

27.3%

-2.4 p.p.

-0.4 p.p.

Depreciação e Amortização

(17.3)

(24.8)

(31.5)

82.6%

27.0%

EBIT

29.5

47.9

65.7

123.1%

37.2%

Margem EBIT (%)

18.8%

18.3%

18.4%

-0.3 p.p.

0.2 p.p.

Resultado Financeiro

(12.3)

(0.4)

(8.8)

-28.4%

2332.9%

Despesa Financeira

(15.1)

(10.9)

(14.2)

-6.1%

29.9%

Receita Financeira

2.8

10.6

5.4

91.9%

-49.0%

EBT

17.1

47.5

56.9

232.2%

19.7%

Impostos

(5.0)

(15.2)

(16.3)

225.7%

7.0%

Lucro Líquido

12.1

32.3

40.6

234.8%

25.7%

Margem Líquida (%)

7.7%

12.3%

11.4%

3.7 p.p.

-0.9 p.p.

Gross Revenue

Gross revenue reached R$408.7 million in 2Q21, an expansion of 126.4% versus 2Q20 and 37.4% compared to 1Q21, mainly due to the expansion in both segments, increasing the Company's share in the foreign market by 7.9 pp, as shown in the chart below:

USA

R$180.6

R$9.4

R$408.7

USA

19.0%

R$65.8

UK

45.4%

R$9.1

18.3%

R$49.8

R$120.3

R$263.7

R$145.1

LatAm

27.6%

2Q20

73.7%

64.5%

2Q21

LatAm

35.5%

R$31.3

R$36.9

62.8%

25.4%

UK

R$42.4

29.2%

EBITDA

EBITDA was R$97.2 million in 2Q21, an increase of 108.1% compared to 2Q20 and 33.7% versus 1Q21, with a margin of 27.3%. The reduction in margin is due to the consolidation of acquired companies that have lower margins.

Financial result

The financial result reached an expense of R$8.8 million in 2Q21, a reduction of 28.4% versus 2Q20 due to better capital structure.

Earnings Release 2Q21

7

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Ambipar Participações e Empreendimentos SA published this content on 16 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2021 12:02:04 UTC.