Kepler Weber S A : 3Q23 Full DFs *

3Q23 EARNINGS RELEASE

"Market resumption and focus on operational management resulting in the best quarter of the year"

Kepler Weber S.A.

Individual and consolidated interim financial statements

September 30, 2023 and 2022

SUMMARY

Interim financial statements
Earnings Release	3
Independent auditors' report on review of interim financial statements……………………….….………24
Statement from the Board of Executive Officers on the Financial Statements	26
Statement from the Board of Executive Officers on the Report of the Independent Auditors	27
Balance sheets	29
Income statements	31
Statements of comprehensive income	32
Statements of changes in equity	33
Statements of cash flows - indirect method	34
Statements of value added	35
Explanatory Notes to the individual and consolidated interim financial statements	36

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3Q23 EARNINGS RELEASE

"Market resumption and focus on operational management resulting in the best quarter of the year"

HIGHLIGHTS

NET REVENUES reached R$405.6 million in 3Q23, a reduction of 21.4% compared to R$515.8 million in the same quarter of the previous year. In the accumulated of 2023, Net Revenues reached R$1,009.9 million, a reduction of 23.1% compared to R$1,313.4 million in the same period of the previous year.

EBITDA totaled R$88.3 million in 3Q23, a reduction of 43.3% compared to R$155.8 million in 3Q22. The EBITDA margin for the quarter was 21.8%, a decrease of 8.4 percentage points compared to 3Q22. In 2023, EBITDA totaled R$219.5 million, a reduction of 44.7% compared to the same period in 2022. The EBITDA margin in 2023 was 21.7% and 8.5 percentage points lower than the accumulated from 2022.

NET INCOME reached R$66.6 million in 3Q23, with a net margin of 16.4% and a reduction of 6.0 percentage points compared to 3Q22. Net Income in 2023 was R$151.2 million, with a net margin of 15.0% and 5.5 percentage points lower than the result for the same period of the previous year.

RELEASE DE RESULTADOS 3T23

São Paulo, October 31, 2023 - Kepler Weber S/A (B3: KEPL3), the parent company of the Kepler Weber Group, a leader in equipment for grain storage and post-harvest solutions in Latin America, announces its consolidated results for the quarter and nine-month period ended September 30, 2023 (respectively "3Q23" and "9M23"). The consolidated information was prepared according to the international financial reporting standards, or "IFRS" (International Financial Reporting Standards).

MESSAGE FROM THE MANAGEMENT

In the third quarter of 2023, we observed an improvement in the dynamics of agribusiness in Brazil, mainly due to the resumption of projects in the Farms segment, shortly after the announcement (in July) of the largest PCA in history, with R$6.65 billion in financing lines available to agribusiness. At the same time, opportunities in the corporate segments served by Kepler, such as Agribusiness and Cooperatives, remained strong.

During this period, the company showed sound performance, driven by net revenues that represent the second best third quarter in the Company's history, up by 44% against 2Q23. As for EBITDA, the Company posted the second best performance for a third quarter, reflecting our commitment to operational efficiency and careful cost management. In a challenging business environment, maintaining a solid EBITDA margin is essential for the company's growth and sustainability.

Additionally, the good sales momentum following the announcement of the 2023/2024 Crop Plan allowed construction of a healthy order backlog, leading to good revenue levels in the next months and, at the same time, maintaining high occupancy in our factories.

We had another quarter with an exemplary ROIC of 50.6%, having maintained a level of consistency regarding this important indicator. Likewise, our Cash maintained sound levels, reaching R$320.0 million, after payment of dividends of R$132.7 million (R$77.7 million in mandatory dividends, R$20.4 million in Interest on Equity, and R$34.6 million in interim dividends) and the purchase of a 50% stake in Procer (R$50.8 million).

The good results for the quarter demonstrate the organization's commitment, both regarding people management, being recognized as the 11th best company to work for in the large companies category in Rio Grande do Sul (GPTW ranking), and regarding business excellence, highlighting important recognitions such as 3rd place in the Maiores e Melhores do Agronegócio 2023 [Best and Biggest in Agribusiness 2023] Exame magazine ranking and 3rd place among the top 10 in the mechanical sector according to Valor 1000.

Such recognition evidences the Company's assertive moves in its market, a fact proven by the maintenance of profitability at very good levels for the current moment, thus leaving the company prepared and resilient for the challenges of the coming quarters.

Table 1 | Main Result Indicators (R$ million)

	3Q23	3Q22	Δ%	2Q23	Δ%	9M23	9M22	Δ%
Return on Invested Capital (*)	-	-	-	-	-	50.6%	107.5%	-56.9 p.p.
Net Operating Revenue	405.6	515.8	-21.4%	281.2	44.2%	1,009.9	1,313.4	-23.1%
Net Income	66.6	115.6	-42.4%	33.4	99.6%	151.2	269.5	-43.9%
Net Margin	16.4%	22.4%	-6 p.p.	11.9%	4.6 p.p.	15.0%	20.5%	-5.5 p.p.
EBITDA	88.3	155.8	-43.3%	53.8	64.1%	219.5	397.0	-44.7%
EBITDA Margin	21.8%	30.2%	-8.4 p.p.	19.1%	2.6 p.p.	21.7%	30.2%	-8.5 p.p.
Earnings per Share (EPS)	0.3767	0.6473	-41.8%	0.1922	96.0%	1.0293	2.1699	-52.6%

(*) ROIC LTM for the last 12 months

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NET OPERATING REVENUES

Net Revenues decreased by 21.4% in 3Q23 against 3Q22. In the accumulated of 2023, revenues dropped 23.1% against the same period in 2022. Revenues included the percentages of 92% regarding operations in the domestic market in 3Q23 and in the accumulated of 2023 respectively, and of 8% in the international market in 3Q23 and the accumulated of 2023 respectively.

There was an addition of R$9.2 million and R$23.4 million in net revenues in 3Q23 and the accumulated of 2023, respectively, in the Replacement & Services segment. It is worth highlighting that this performance was obtained by Procer, considering the effect of the consolidation of its results in the Company's statements, in the period between March (month of consolidation) and September 2023.

The evolution in the proportion of revenues between these markets is shown in figure 1 below:

Figure 1 | Net Operating Revenue by Market (values in R$ millions)

Farms

NOR	Farms
3Q23	145,6
3Q22	248,9
Δ%	-41,5%
2Q23	82,6
Δ%	76,3%
9M23	335,8
9M22	503,2
Δ%	-33,3%

• Net Revenues from the "Farms" segment in 3Q23 reached R$145.6 million, the best quarter of 2023 despite a 41.5% reduction compared to 3Q22. In relation to the accumulated result for 2023, we reached R$335.8 million, a decrease of 33.3% compared to the accumulated result for 2022.
• As observed in the 1st half, the segment's net revenues were impacted by lower prices in the market due to the drop in prices of our main raw material, the galvanized steel. It is important to note the recovery of revenues in the Farms segment, increasing 76.3% compared to 2Q23, reflecting the favorable seasonality of the period together with the boost from the largest PCA in history in July/23, releasing several orders that were held back in the 1st half.
• As a way of demonstrating this recovery, in 3Q23, the Company sold two significant orders to medium-sized producers in the state of Mato Grosso in the amount of R$22.5 million, which will represent an increase in revenues in 4Q23. One of the projects was sold to a

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traditional customer of the company, which is expanding its existing receipt and storage capacity, and has seed processing and an ethanol plant at the plant. The other project was sold to a new customer and stands out for its location, providing greater visibility and strengthening the brand's presence in the region.

• Another important highlight was the sale of four projects to large producers in the regions of Mato Grosso, Mato Grosso do Sul and Rio Grande do Sul, representing a total of R$55.8 million. These projects include new works and expansions of existing facilities, standing out mainly for their location, agility and commitment to deliveries until the crop. The turnover from these projects will increase revenues in 4Q23 and 1Q24.

Agribusiness

NOR	Agribusiness
3Q23	154,2
3Q22	148,9
Δ%	3,6%
2Q23	85,2
Δ%	81,0%
9M23	349,5
9M22	519,8
Δ%	-32,8%

• Net Revenues from "Agribusinesses" in 3Q23 reached R$154.2 million, an increase of 3.6% compared to the same period in 2022. Year-to-date in 2023, we reached R$349.5 million, down 32.8% against the same period in 2022. Just like in the Farms segment, this was our best quarter of the year in terms of revenues, up by 81% compared to 2Q23.
• In addition to the record levels of grain production in Brazil in the 2022/2023 cycle and the good expectations for the 2023/2024 crop, the increase in the segment's net revenues is a reflection of the growing demand felt by cooperatives, cereal producers and agribusinesses, leading them to make new investments. Transportation of grains also did not keep pace with storage speed, thus accelerating the demand for storage capacity in the segment.

In 3Q23, the segment sold significant orders, among which we highlight seven projects that will boost revenues in 4Q23 and 1H24:

• For the region of Mato Grosso do Sul, a total of six projects representing the amount of R$93.9 million were sold to the same cooperative, five of which were for expanding storage in existing facilities in the region and another order referring to a new unit to expand storage, receiving and shipping capacity.
• Another sales highlight in the segment is a project intended for Goiás, in a strategic location in the region. This is a new large unit for a cereal producer, focusing on storage for the 2024 corn crop. In addition to the competitive deadlines and the outstanding products with offered by Kepler, another fundamental aspect after closing the deal was the presence of the customer at the "Portas Abertas [Open Doors] 2023" event, held by the Company in September, strengthening customer relations and reinforcing trust in the brand.

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International Business

NOR	International
Business
3Q23	31,3
3Q22	47,1
Δ%	-33,5%
2Q23	25,0
Δ%	25,2%
9M23	79,0
9M22	125,4
Δ%	-37,0%

Ports and Terminals

NOR	Ports & Terminals
3Q23	3,2
3Q22	13,7
Δ%	-76,6%
2Q23	28,0
Δ%	-88,6%
9M23	63,0
9M22	19,6
Δ%	221,4%

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• Net Revenues from "International Business" in 3Q23 reached R$31.3 million, down 33.5% against the same period in 2022, but even though the best quarter of 2023. Year-to-date in 2023, we reached R$79.0 million, down 37.0% against to 2022.
• The reduction in sales orders reflected the lower level of activity in Latin America, resulting in sales retractions in important regions for the Company:
• • Paraguay and Uruguay, which represent the Company's main export destinations, are facing a water crisis that is punishing food production, harming the economy in these regions. Furthermore, customers are directly affected by the price of commodities and do not have financing lines available, such as those offered in Brazil, being therefore dependent on their own capital to carry out projects.
  • The Company has taken measures to reduce the impact on the portfolio, focusing on differentiated customer service, mainly driven by after-sales. Equipment like KW Max offers outstanding features, leveraging Kepler's projects without sacrificing margins. Finally, it is worth highlighting that the Company has worked to open and consolidate other markets to reduce dependence on South American countries.
• In 3Q23, we highlight the sale of three important projects, intended for Bolivia, Paraguay and Uruguay, to medium and large producers, representing an approximate amount of R$22.5 million and which will contribute to boosting revenues in 4Q23 and 1Q24.

• Net Revenues from "Ports and Terminals" in 3Q23 reached R$3.2 million, down 76.6% against the same period in 2022. Year-to-date in 2023, we reached R$63.1 million, up 221.9% against the same period in 2022.
• Turnover in the quarter was impacted by the execution of large projects in Ports and Terminals, generating volatility in turnover. Another aspect that interferes with revenues dynamics is compliance with the delivery schedule for the materials produced, which depend on the assembly of the work, generating fluctuations when we compare revenues from

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one quarter to another. However, overall, 2023 brings sound results for the segment, with prospects of growing revenues for 4Q23, as well as for 2024.

• In 3Q23, the company sold two projects to an important customer totaling R$51.0 million, which will increase revenues as from 4Q23 through to 1H24. Both projects are expansions of existing facilities for loading, unloading and shipping grains, for which Kepler will provide conveyors, interconnections, aeration systems and digital monitoring, with the purpose of increasing the static storage capacity of a corn ethanol plant.

Replacement and Services (R&S)

Balsas | MA	Paragominas | PA
Campo Grande | MS	Panambi | RS
Cascavel | PR	Rio Verde | GO
Cuiabá | MT	Sorriso | MT

NOR	Replacement and
Services
3Q23	71,3
3Q22	57,2
Δ%	24,7%
2Q23	60,4
Δ%	18,0%
9M23	182,6
9M22	145,4
Δ%	25,6%

• Net Revenues from "Replacement & Services" in 3Q23 amounted to
  R$71.3 million, up 24.7% against the same period in 2022. Compared to the year-to-date in 2023, we reached R$182.6 million, up 25.6% against the same period in 2022.
• It is important to highlight that, in this segment, Procer's revenues were consolidated from March to September 2023. Thus, if adjusted according to the effects of consolidation of the purchase (not considering Procer), Net Revenues would show an increase of 8.6% and 9.6% against 3Q22 and year-to-date in 2022, respectively.
• We highlight that the Replacement and Services sector recorded in 3Q23 the first extended warranty sales. Additionally, there was an increase in the volume of digital business to modernize customer operations through equipment from Procer.
• The opening of Distribution Centers in Balsas/MA and Paragominas/PA contributed to increasing the customer base, generating a greater volume of business and customer satisfaction. Transfers of materials to the DC in Sorriso/MT, training and commercial alignments of the sales team in Goiás and Minas Gerais also began in 3Q23;
• Finally, the launch of the New Silo Ração KW, added to operational management efforts, delivery times in line with customer expectations, as well as the management of profitability and working capital, favored R&S results in this quarter.

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COST OF GOODS SOLD (COGS)

Costs of Goods Sold (R$ million) | Net Revenues (%)

• COGS amounted to R$292.7 million and corresponded to 72.2% of net revenues in 3Q23, down 11.5% and R$38.2 million in absolute terms, with increase of 8.0 percentage points against 3Q22. Year-to-date in 2023, COGS amounted to R$712.6 million, down 15.0% and R$125.6 million against year-to-date in 2022, representing 70.6% of net revenues, and an increase of 6.8 percentage points against the same period of the previous year.

• The reduction in the absolute value of COGS, both in the quarter and on a YTD basis, ar, relates to the decrease in raw materials costs, particularly steel, as well as to lower activity levels in the period compared to the previous year.

Figure 2 | COGS Breakdown

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SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling Expenses (R$ million) % in Net Revenues

• Selling Expenses in 3Q23 hit R$25.3 million, or 6.2% of net revenues, up 1.3 percentage point and variation of +0.6% in absolute values against 3Q22. Year-to- date in 2023, Selling Expenses amounted to R$68.0 million, down 1.5%, representing 6.7% of net revenues and an increase of 1.4 percentage point against the same period in the previous year.

• The reduction in selling expenses is justified by the heading "Commissions", impacted by lower activity levels.

• We highlight that, historically, we have evolved with gains from our budget management, which has made possible to optimize the performance of operating expenses, even in the face of changes in the scenario (retraction in volumes and prices).

General and Administrative Expenses (R$ million) % of Net Revenues

• General and Administrative Expenses totaled R$23.1 million in 3Q23, representing 5.7% of Net Revenues, up 2.3 percentage points against the previous quarter. Year-to-datein 2023, General and Administrative Expenses amounted to R$64.3 million, up 28.0%, and 2.6 percentage points higher than the same period in 2022.

• The increase in General and Administrative Expenses in 3Q23 is mainly due the consolidation of Procer's expenses (+R$1.9 million); inflation on personnel expenses and benefits package (+R$2.3 million); and higher IT and third parties expenses (+R$1.0 million).

OTHER OPERATING REVENUES AND EXPENSES, NET

Other Net Operating Revenues and Expenses reached a positive result of R$14.8 million in 3Q23, against R$6.4 million in 3Q22. The highlight of the positive variation of +R$8.4 million is the capture of extemporaneous credits of R$11.8 million. Year-to-date in 2023, the net positive result was R$28.9 million, compared to R$18.8 million in the same period of the previous year.

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