Tupy S A : Dados Econômico-Financeiros

Quarterly Financial Report

June 30, 2022

Release

Quarterly Financial Information

Selected Explanatory Notes

Independent auditor´s report

www.tupy.com.br

Strong Operating Result and Increase in

Return on Invested Capital

Earnings Conference Call

Date: August 05, 2022

Portuguese/English

11:00 a.m. (Brasília) / 10:00 a.m. (EST)

Dial in USA: [phone]

Toll free USA: + 1 844 204-8942

Dial in Brazil: [phone]

Dial in Brazil: [phone]

Code: TUPY

Website:www.tupy.com.br/ri

Investor Relations

Thiago Fontoura Struminski

Chief Financial and

Investor Relations Officer

Hugo Zierth

IR Manager

Rafael Felipe Junckes

[e-mail]

[phone]

• Revenues: R$2.5 billion (+54% vs 2Q21). These figures include revenues from new operations.
• Physical sales volume: 176 thousand tons in 2Q22 (+37% vs 2Q21). On the same comparison base, excluding the effects from the new operations, volumes were still lower than in the pre-pandemic period due to impacts caused by semiconductors and other inputs in our customers' supply chain.
• EBITDA (Adjusted and CVM): R$345 million and R$332 million, respectively.
  The highest quarterly results in the Company's history.
• Adjusted EBITDA Margin: 13.7% in 2Q22 (vs 11.3% in 2Q21), including all of the Company's operations. The increase in margin results from the synergies that were captured, reflecting on all of the Company's plants, in addition to pass-through of costs and the initiatives made towards efficiency gains and cost reductions, thus mitigating the effects caused by the increase in raw material and freight expenses.
• Return on Invested Capital (ROIC): 13.6% in 2Q22 (vs 11.3% in 2Q21), despite working capital exceeding the pace of sales and a larger asset base due to the new plants.
• Net Income: The highest amount in the Company's history, reaching R$180 million in 2Q22, vs a net income of R$31 million in 2Q21.

Note: except when indicated, the amounts referring to 2Q22 include the Betim and Aveiro operations acquired on October 1, 2021.

EARNINGS RELEASE | FINANCIAL INFORMATION | NOTES | AUDITORS' REPORT

MESSAGE FROM MANAGEMENT

The results for the second quarter of 2022 reflect the advances we made for a set of action plans aimed at offsetting inflation on prices for materials, services, and logistics, and was also affected by the appreciation of the Brazilian Real and consequences from the lack of complementary components at our customers.

As part of these action plans, we highlight the efforts carried out on the commercial front, such as the shortening of deadlines to pass-through costs, and the revision of corporate structure, which helped us reduce fixed costs and administrative expenses. In parallel, we made important enhancements in Tupy's Production System (SPT), resulting in the improvement of operating indicators in Joinville and at the plants in Mexico. In Betim and Aveiro, we advanced in the reorganization of projects and in adopting working methods that will benefit the Company's entire operations, achieving an even more flexible production model that is in line with our business plan.

The initiatives by our Management team and the resilience of the business model contributed to achieving solid results. We continued to increase profitability, even during a quarter characterized by high costs in raw materials and currency appreciation. In this quarter, we recorded the highest levels of net revenue and EBITDA in the Company's history. Net income, in turn, reached R$180 million, also the highest level in the Company's history.

Our disciplined investment profile contributed to the increase in ROIC, reaching approximately 14% in 2Q22 (vs 11% in 2Q21), despite the higher invested capital from the acquisition of the new plants. Debt is at very comfortable levels, with net debt at approximately 1.42x of LTM Adjusted EBITDA.

Pent-up demand e resilience against external factors

As in previous quarters, we still witnessed stoppages in customer production and volumes below potential due to bottlenecks at production chains. These interruptions increased Tupy's in-process and finished goods inventory levels. In the market, pent-up demand increased and was reflected in the expanded customer backlog indicators and lower inventory levels for finished equipment. These effects, plus the need for fleet renewal, will have a favorable impact on volumes, thus mitigating the adverse impacts from the rise in interest rates.

In addition to being a reference for quality and technological innovation in our industry, our plants are located in countries with competitive costs and energy availability. This combination allows us to offer new products and services to support the growth of our customers, the leading manufacturers of commercial vehicles, machinery and equipment in the West. Currently, we have a robust pipeline of new contracts, with more than 30 projects for structural components for machinery and off-road equipment.

The New TUPY

On June 27, we held a Public Meeting with Investors (Tupy Day). In this event, we discussed our growth, sustainability, and innovation strategies. These strategies also substantiate our competitiveness and decarbonization journey, offering a wide range of solutions, such as the development of new materials, metal alloys, and machining techniques applicable in hydrogen-powered engines, biofuels, and many other alternatives that are being contemplated in a multi-fuel future. This also includes the development of products such as the Ultra Light Iron Block, used in hybrid and ethanol-powered vehicles and offering many benefits over current products. In addition to being more cost-effective, it

TUPY S.A. | Earnings Release 2

EARNINGS RELEASE | FINANCIAL INFORMATION | NOTES | AUDITORS' REPORT

reduces CO2 emissions in the manufacturing process by approximately 50%. These strategies also contemplate processes that are currently not part of the business, but rely on knowledge that we and our partners already have, such as the recycling of lithium-ion batteries.

We also explored the opportunities arising from the acquisition of MWM. We initiated the integration planning process and expect the transaction to be approved by the Brazilian antitrust entity (CADE) under the same conditions that were signed in the agreement. With this move, we will advance in new business opportunities and become a unique Company in the industry, qualified to provide casting, machining, assembly, technical validation, and all related engineering services. Moreover, the transaction will provide us with new growth avenues adjacent to our current model, adding revenue diversity and exposure to countercyclical sectors, such as spare parts, reinforcing our resilience to market fluctuations. We highlight the market opportunities that exist for generator sets, low-carbon transport, and power generation in farmlands, meeting the decarbonization needs of Brazilian agribusiness.

This movement fulfills the strategic architecture we designed for the New Tupy: a larger, sustainable, diversified, and even more efficient Company, with unique market positioning and an increasingly important role in the decarbonization journey of our customers.

TUPY S.A. | Earnings Release 3

EARNINGS RELEASE | FINANCIAL INFORMATION | NOTES | AUDITORS' REPORT

SUMMARIZED RESULTS

			Consolidated (R$ thousand)
SUMMARY	2Q22	2Q21	Var. [%]	1H22	1H21	Var. [%]
Revenues	2,529,016	1,645,453	53.7%	4,893,313	3,189,708	53.4%
Cost of goods sold	(2,019,094)	(1,410,559)	43.1%	(3,973,752)	(2,714,841)	46.4%
Gross Profit	509,922	234,894	117.1%	919,561	474,867	93.6%
% on Revenues	20.2%	14.3%	-	18.8%	14.9%	-
Operating expenses	(244,420)	(123,067)	98.6%	(424,372)	(241,428)	75.8%
Other operating expenses	(17,883)	(58,170)	-69.3%	(50,670)	(99,497)	-49.1%
Income before Financial Result	247,619	53,657	361.5%	444,519	133,942	231.9%
% on Revenues	9.8%	3.3%	-	9.1%	4.2%	-
Net financial income (loss)	6,599	(56,467)	-	(91,880)	(115,175)	-20.2%
Income (Loss) before Tax Effects	254,218	(2,810)	-	352,639	18,767	-
% on Revenues	10.1%	-0.2%	-	7.2%	0.6%	-
Income tax and social contribution	(74,645)	34,300	-	(99,067)	(2,183)	-
Net Income	179,573	31,490	470.3%	253,572	16,584	-
% on Revenues	7.1%	1.9%	-	5.2%	0.5%	-
EBITDA (CVM Inst. 527/12)	332,053	141,514	134.6%	626,578	314,146	99.5%
% on Revenues	13.1%	8.6%	-	12.8%	9.8%	-
Adjusted EBITDA	345,494	185,728	86.0%	659,219	384,789	71.3%
% on Revenues	13.7%	11.3%	-	13.5%	12.1%	-
Average exchange rate (R$/US$)	4.93	5.29	-6.9%	5.08	5.39	-5.7%
Average exchange rate (R$/€)	5.24	6.38	-17.8%	5.56	6.49	-14.4%

TUPY S.A. | Earnings Release 4