Vulcabras S A : ITR-2Q22

Interim Financial Information

Vulcabras S.A.

June 30, 2022

with Independent auditors' report on interim financial information

Vulcabras S.A.

Interim financial information

June 30, 2022

Contents

Report on the review of quarterly information..................................................................................	1
Reviewed individual and consolidated interim financial information
Balance sheets ...............................................................................................................................	3
Statements of income .....................................................................................................................	4
Statements of comprehensive income ............................................................................................	5
Statement of changes in shareholders' equity - Parent company and Consolidated........................	6
Statements of cash flows - Indirect method.....................................................................................	7
Statements of added value .............................................................................................................	8
Notes to the interim financial information ........................................................................................	9

Centro Empresarial Iguatemi

Av. Washington Soares, 55

5º andar - sala 506 a 509 - Bairro Cocó 60811-341 - Fortaleza - CE - Brasil

Tel: [phone]

Fax:[phone] ey.com.br

A free translation from Portuguese into English of Independent Auditor's Review Report on interim financial information prepared in Brazilian currency in accordance with accounting practices adopted in Brazil and with IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB)

Independent auditor's review report on quarterly information

To

The Directors and Shareholders of

Vulcabras S.A.

Jundiaí - SP

Introduction

We have reviewed the accompanying individual and consolidated interim financial information, contained in the Quarterly Information Form (ITR) of Vulcabras S.A. ("Company"), for the quarter ended June 30, 2022, comprising the statement of financial position as of June 30, 2022 and the related statement of profit or loss and of comprehensive income for the three-month and six-month periods then ended, and of changes in equity and of cash flows for the six-month period then ended, including explanatory notes.

Executive board is responsible for the preparation of the individual and consolidated interim financial information in accordance with NBC TG 21 - Interim Financial Reporting and IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as for the fair presentation of this information in conformity with specific rules issued by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of the Quarterly Information Form (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review

We conducted our review in accordance with Brazilian and international standards on review engagements (NBC TR 2410 and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the individual and consolidated interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual and consolidated interim financial information included in the quarterly information referred to above are not prepared, in all material respects, in accordance with NBC TG 21 and IAS 34, applicable to the preparation of Quarterly Financial Form (ITR), and presented consistently with the rules issued by the Brazilian Securities and Exchange Commission (CVM).

Uma empresa-membro da Ernst & Young Global Limited

Other matters

Audit of corresponding amounts

The Company's individual and consolidated financial statements for the year ended December 31, 2021 and the individual and consolidated interim financial information for the three- and six-month period ended June 30, 2021 were examined and reviewed by another independent auditor, who issued an audit report dated March 8, 2022 and a review report dated August 10, 2021, respectively,which did not contain any modification

Statements of value added

The aforementioned quarterly information include the individual and consolidated statements of value added (SVA) for the six-month period ended June 30, 2022, prepared under Company's Executive Board responsibility and presented as supplementary information by IAS 34. These statements have been subject to review procedures performed together with the review of the quarterly information with the objective to conclude whether they are reconciled to the interim financial information and accounting records, as applicable, and if its format and content are in accordance with the criteria set forth by NBC TG 09 - Statement of Value Added. Based on our review, nothing has come to our attention that causes us to believe that theywere not prepared, in all material respects, consistently with the overall individual and consolidated interim financial information.

Recife (PE), July 28, 2022.

ERNST & YOUNG

Auditores Independentes S.S.

CRC-2SP015199/O-6

Original report in Portuguese signed by

Francisco da Silva Pimentel

Accountant CRC-1SP171230/O-7-T-PE

Vulcabras S.A. (Publicly-held company)

Balance sheets

As of June 30, 2022 and December 31, 2021 (In thousands of reais)

		Consolidated		Parent company			Consolidated		Parent company
Assets	Note	06/30/2022	12/31/2021	06/30/2022	12/31/2021	Liabilities	Note	06/30/2022	12/31/2021	06/30/2022	12/31/2021
Cash and cash equivalents	4	105.653	114.635	805	33	Suppliers	16	147.323	78.006	177	1.672
Trade accounts receivable	6	688.549	616.275	-	-	Loans and financing	17	211.184	291.497	-	-
Inventories	7	583.939	493.497	-	-	Lease liabilities	18	8.379	7.129	-	-
Recoverable taxes	8	30.306	46.852	582	576	Taxes payable		7.678	8.944	150	130
Income tax and social contribution	9a	13.476	7.073	752	746	Salaries and vacations payable		61.951	45.618	13	13
Amounts receivable for disposal of operation		3.850	3.850	-	-	Provisions	19	17.948	22.488	666	418
Other accounts receivable		14.373	17.115	1.562	2.124	Income tax and social contribution - deferred	9b	2.576	2.576	-	-
									Commissions payable		18.114	14.305	-	-
Total current assets		1.440.146	1.299.297	3.701	3.479	Dividends and profits payable		-	4	-	4
	Other accounts payable		27.270		24.337		324		153
Interest earning bank deposits	5	10.693	10.312	1	2	Total current liabilities		502.423	494.904	1.330	2.390
Trade accounts receivable	6	7.047	3.631	-	-	Loans and financing	17	89.090	69.753	-	-
Recoverable taxes	8	71.798	63.099	1.831	1.821	Borrowings with related parties	11	18.242	18.041	217.720	206.533
Deferred income tax and social contribution	9b	477	493	-	-	Lease liabilities	18	13.157	12.650	-	-
Judicial deposits	10	16.873	16.005	332	338	Provisions	19	41.826	37.390	-	-
Borrowings with related parties	11	-	-	123.484	118.324	Deferred taxes on revaluation of property, plant and eq	9b	2.210	2.272	-	-
Amounts receivable for disposal of operation		-	1.720	-	-	Provision for investment losses	12	-	-	127	135
Goods for sale		194	194	-	-	Other accounts payable		3.311		3.665		-		-
Other accounts receivable		2.146		2.208		1.207		1.299	Total non-current liabilities		167.836	143.771	217.847	206.668
Long-term assets		109.228	97.662	126.855	121.784
	Shareholders' equity
									Capital	20	1.106.717	1.106.717	1.106.717	1.106.717
Investments	12	71.682	69.408	1.599.798	1.439.905	Revaluation reserve	20	4.290	4.410	4.290	4.410
Investment property		4	5	-	-	Capital reserve	20	3.965	4.731	3.965	4.731
Right-of-use	18	18.880	17.442	-	-	Legal reserve	20	15.692	15.692	15.692	15.692
Property, plant and equipment	13	332.777	302.337	-	-	Unrealized profit reserve	20	201.927	201.927	201.927	201.927
Intangible assets	14	209.166		209.086		111		111	Equity valuation adjustments	20	20.855	22.744	20.855	22.744
		632.509	598.278	1.599.909	1.440.016	Retained earnings		157.842		-		157.842		-
		Shareholders' equity attributable to controlling sharehold	1.511.288		1.356.221		1.511.288		1.356.221
									Non-controlling interest		336		341		-		-
Total non-current assets		741.737		695.940		1.726.764		1.561.800	Total shareholders' equity		1.511.624		1.356.562		1.511.288		1.356.221
									Total liabilities		670.259		638.675		219.177		209.058
Total assets		2.181.883		1.995.237		1.730.465		1.565.279	Total liabilities and shareholders' equity		2.181.883	1.995.237	1.730.465		1.565.279
See the accompanying notes to the quarterly financial information.									-	-	-	-

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