Vulcabras S A : ITR-3Q22

Interim Financial Information

Vulcabras S.A.

September 30, 2022

with Independent auditors' report on interim financial information

Vulcabras S.A.

Interim financial information

September 30, 2022

Contents

Independent auditor's review report on quartely information ...........................................................	1
Reviewed individual and consolidated interim financial information
Statements of financial position.......................................................................................................	3
Statements of profit or loss .............................................................................................................	4
Statements of comprehensive income ............................................................................................	5
Statements of changes in equity .....................................................................................................	6
Statements of cash flows ................................................................................................................	7
Statements of value added .............................................................................................................	8
Notes to individual and consolidated 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 September 30, 2022, comprising the statement of financial position as of September 30, 2022 and the related statement of profit or loss and of comprehensive income for the three-month and nine-month periods then ended, and of changes in equity and of cash flows for the nine-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).

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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 nine-month period ended September 30, 2021 were examined and reviewed by another independent auditor, who issued an audit report dated March 8, 2022 and a review report dated November 9, 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 nine-month period ended September 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 they were not prepared, in all material respects, consistently with the overall individual and consolidated interim financial information.

Recife (PE), November 1st, 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

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Vulcabras S.A. (Publicly-heldcompany)

Statements of financial position

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

		Consolidated		Parent company			Consolidated		Parent company
Assets	Note	09/30/2022	12/31/2021	09/30/2022	12/31/2021	Liabilities	Note	09/30/2022	12/31/2021	09/30/2022	12/31/2021
Cash and cash equivalents	4	211.959	114.635	102.374	33	Suppliers	16	141.100	78.006	88	1.672
Trade accounts receivable	6	709.342	616.275	-	-	Loans and financing	17	277.377	291.497	-	-
Inventories	7	634.225	493.497	-	-	Lease liabilities	18	8.126	7.129	-	-
Recoverable taxes	8	20.126	46.852	582	576	Taxes payable		18.237	8.944	201	130
Income tax and social contribution	9a	12.107	7.073	790	746	Salaries and vacations payable		82.065	45.618	13	13
Amounts receivable for disposal of operation		2.990	3.850	-	-	Provisions	19	21.984	22.488	660	418
Other accounts receivable		18.887	17.115	1.126	2.124	Income tax and social contribution - deferred	9b	2.576	2.576	-	-
									Commissions payable		19.405	14.305	-	-
									Dividends and profits payable		-	4	-	4
Total current assets		1.609.636	1.299.297	104.872	3.479	Other accounts payable		35.686		24.337		420		153
Interest earning bank deposits	5	8.279	10.312	1	2	Total current liabilities		606.556	494.904	1.382	2.390
Trade accounts receivable	6	5.168	3.631	-	-	Loans and financing	17	83.612	69.753	-	-
Recoverable taxes	8	72.850	63.099	1.831	1.821	Borrowings with related parties	11	18.345	18.041	224.931	206.533
Deferred income tax and social contribution	9b	473	493	-	-	Lease liabilities	18	12.112	12.650	-	-
Judicial deposits	10	18.804	16.005	406	338	Provisions	19	37.598	37.390	-	-
Borrowings with related parties	11	-	-	27.006	118.324	Deferred taxes on revaluation of property, plant and equipmen	9b	2.179	2.272	-	-
Amounts receivable for disposal of operation		-	1.720	-	-	Provision for investment losses	12	-	-	132	135
Goods for sale		194	194	-	-	Other accounts payable		3.134		3.665		-		-
Other accounts receivable		2.035		2.208		1.087		1.299	Total non-current liabilities		156.980	143.771	225.063	206.668
Long-term assets		107.803	97.662	30.331	121.784
	Shareholders' equity
									Capital	20	1.106.717	1.106.717	1.106.717	1.106.717
Investments	12	74.066	69.408	1.701.907	1.439.905	Revaluation reserves	20	4.230	4.410	4.230	4.410
Investment property		4	5	-	-	Capital reserves	20	4.529	4.731	4.529	4.731
Right-of-use	18	18.131	17.442	-	-	Legal reserve	20	15.692	15.692	15.692	15.692
Property, plant and equipment	13	355.906	302.337	-	-	Unrealized profit reserve	20	-	201.927	-	201.927
Intangible assets	14	209.114	209.086	111	111	Statutory reserve	20	201.927	-	201.927	-
									Equity valuation adjustments	20	21.889	22.744	21.889	22.744
		657.221	598.278	1.702.018	1.440.016	Retained earnings		255.792		-		255.792		-
									Shareholders' equity attributable to controlling shareholders	1.610.776		1.356.221		1.610.776		1.356.221
									Non-controlling interest		348		341		-		-
Total non-current assets		765.024		695.940		1.732.349		1.561.800	Total shareholders' equity		1.611.124		1.356.562		1.610.776		1.356.221
									Total liabilities		763.536		638.675		226.445		209.058
Total assets		2.374.660		1.995.237		1.837.221		1.565.279	Total liabilities and shareholders' equity		2.374.660	1.995.237	1.837.221		1.565.279
See the accompanying notes to the quarterly financial information.									-	-	-	-

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