Earnings release
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ADR: IOCJY Videoconference Date: February 27, 2025 Time: 10:00 a.m (BRT) Portuguese wit simultaneous translation into English Access: Iochpe-Maxion Website: www.iochpe.com.br Investor Relations Marcos S. de Oliveira Chief Executive Officer Renato Salum Chief Financial and Investor Relations Officer Rodrigo Caraça Sr. Investor Relations Manager Ainá Guimarães Investor Relations ri@iochpe.com.br Earnings Release 4Q24 and 2024
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Page 2 of 15 ADR: IOCJY 1) MESSAGE FROM THE CEO In 2024, we achieved important results, reflecting our commitment to normalizing profitability, sustainable growth and discipline in capital allocation and structure. With a significant increase in gross profit and EBITDA, the Company demonstrated its ability to adapt , improve operational efficiency with productivity gains, adjust prices to costs and effectively launch our products in new vehicle programs around the world. Regarding vehicle production volumes, in 2024 we saw an increase in production in Brazil, especially in commercial vehicles, and a significant drop in production volumes in Europe and to a lesser extent in North America. It is worth highlighting the strong progress made in the productivity of our operations in this region, even in this scenario of falling production volumes. As far as our balance sheet is concerned, we have taken a significant step towards reducing leverage, driven by better cash generation and strict control of financial costs. In this regard, we have reduced spreads through debt restructuring, while optimizi ng debt maturities and conditions (liability management). According to S&P Global, global light vehicle production grew by 0.6% in 4Q24 (or a fall of 3.6% excluding China) and fell by 1.1% in 2024 (or 3.3% excluding China), compared to 4Q23 and 2023. Global Data, meanwhile, reported that global commercial vehicle production fell by 13.5% in 4Q24 (or 11.4% excluding China) and registered a decrease of 5.2% (or 6.4% excluding China) compared to 4Q23 and 2023. The company's net operating revenue grew by 12.2% in 4Q24, reaching R$ 3.9 billion, and by 2.5% in 2024, totaling R$ 15.3 billion. This increase reflects the readjustment of prices in line with product costs and the conversion of the results of our sales abroad into Brazilian Real. Once again, we saw an increase in gross profit compared to the same period last year, with growth of 27.0% in 4Q24 and a gross margin of 12.4%, representing an increase of 1.5 p.p. In 2024, gross profit grew by 20.8%, with a gross margin of 11.9%, or an in crease of 1.8 p.p. This improvement was driven by the stabilization of raw material prices, improvement in the company's operational efficiency and better pricing of products due to inflation in recent periods. EBITDA showed significant progress compared to the previous year, with growth of 30.7% and a margin of 9.7% in 4Q24. In 2024, growth was 21.6%, with a margin of 9.9%. Excluding non -recurring events in both periods, we had
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Page 3 of 15 ADR: IOCJY EBITDA growth of 26.3% in 2024, with a recurring margin of 10.2% compared to 8.3% in 2023. Financial leverage, measured by the ratio between net debt and EBITDA for the last 12 months, was 2.39x in 4Q24, compared to 2.93x in 4Q23 and 2.59x in 3Q24. Net debt reached R$ 3,637.2 million in 4Q24, a reduction of 1.0% compared to 4Q23 and 2.0% compared to 3Q24, having been negatively impacted by the devaluation of the Real in 4Q24 (27.9% versus 4Q23 and 13.6% versus 3Q24). The cash position at the end of 4Q24 was R$ 2,463.5 million compared to R$ 2,962.4 million at the end of 4Q23. In addition, we have undrawn committed credit lines in the amount of R$ 760.0 million. During the fourth quarter of 2024, we were again recognized by automakers and industry associations, reaffirming our commitment to quality, technology, competitiveness, delivery, sustainability and overall customer satisfaction. Our steel wheel plant for c ommercial vehicles in India received the 'Daimler India Supplier Quality Excellence' award from Daimler India. And the steel wheel factory for light vehicles in Brazil received the 'Excellence Quality Award' from Hyundai Motor Brasil and the 'GM Brazil Customer Care and Aftersales On-Time Shipping Award' from GM Brasil. In 2024, we reinforced our commitment to sustainability by winning important accolades. The company's debut on B3's Carbon Efficient Index (ICO2) and Diversity Index (IDIVERSA) reflects the solid practices we have adopted to reduce emissions and promote inclusion in all spheres. We advanced towards our carbon neutrality targets, reducing approximately 38% of the intensity of Greenhouse Gas (GHG) emissions in scopes 1 and 2, compared to the 2019 base year. In addition, we achieved 75% use of electricity from renewable sources. Faced with market changes, geopolitical issues, inflationary pressures and variations in our customers' production volumes, we quickly adapted our operations in different countries to meet current vehicle demand, mitigating impacts on the profitability of our business units. We continue to focus on gains in productivity and operational efficiency, the launch of new products, advances in engineering, digitalization and innovation, and strengthening our balance sheet. Our commitment is to continue generating value sustainably over time.
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Page 4 of 15 ADR: IOCJY 2) 4Q24 AND 2024 HIGHLIGHTS ▪ Net operating revenue of R$ 3,909.1 million in 4Q24 and R$ 15,331.8 million in 2024, representing a growth of 12.2% and 2.5%3 ▪ Gross profit of R$ 483.0 million with a gross margin of 12.4% in 4Q24 and R$ 1,821.4 million with a gross margin of 11.9% in 2024, an increase of 27.0% and 1.5 p.p.¹ and 20.8% and 1.8 p.p. ¹ ▪ Recurring EBITDA² grew 32.9% in 4Q24 with an EBITDA margin of 9.9% and 26.3% in 2024 with a margin of 10.2%, representing an increase of 1.6 p.p. and 1.9 p.p. ¹, respectively ▪ Net income of R$ 68.4 million in 4Q24 and R$ 264.7 million in 2024 (earnings per share of R$ 0.45728 in 4Q24 and R$ 1.76635 in 2024) ▪ Financial leverage³ of 2.39x in 4Q24, compared to 2.93x in 4Q23 and 2.59x in 3Q24, showing a downward trend ▪ Declared distribution of R$ 99.3 million in earnings for 2024, of which R$ 70.2 million in interest on equity net of taxes and R$ 29.1 million in dividends 3) MARKET Vehicle production in the regions where the largest percentage of the company's consolidated turnover is concentrated, performed as follows in the periods indicated (in thousands): 3 Compared to the same period last year 2 Excluding the non-recurring effects in both periods (item 4.5) 3 Net debt/EBITDA for the last 12 months Region 4Q23 4Q24 Var. 4Q23 4Q24 Var. Brazil 121 169 39.5% 30 45 48.6% India 1,292 1,336 3.4% 118 100 -15.8% North America 624 612 -1.9% 154 130 -15.6% Europe³ 596 462 -22.6% 155 110 -29.3% Global 24,195.50 24,348.44 0.6% 855 740 -13.5% Global Ex-China 15,459.97 14,897.38 -3.6% 562 546 -2.7% Region 2023 2024 Var. 2023 2024 Var. Brazil 2,204 2,381 8.0% 57 79 39.4% India 5,441 5,651 3.9% 475 445 -6.2% North America 15,683 15,441 -1.5% 624 612 -1.9% Europe³ 16,716 15,688 -6.2% 596 462 -22.6% Global 90,469 89,489 -1.1% 3,402 3,226 -5.2% Global Ex-China 61,705 59,670 -3.3% 2,286 2,139 -6.4% (1) Source: ANFAVEA (Brazil) and S&P Global (other regions) - February, 2025 (2) Source: Global Data (Commercial Vehicles) - 4Q24 (3) Consider EU27 + UK + Turkey Light Vehicles¹ Commercial Vehicles²
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Page 5 of 15 ADR: IOCJY The latest consultancy forecasts for 2025 indicate a stabilization in global light vehicle production (down 0.9% excluding China) and growth of 1.1% in global commercial vehicle production (down 0.8% excluding China). 4) OPERATING AND FINANCIAL PERFORMANCE 4.1) Net operating revenue Consolidated net operating revenue reached R$ 3,909.1 million in 4Q24 and R$ 15,331.8 million in 2024, representing growth of 12.2% compared to 4Q23 and 2.5% compared to 2023. The increase in revenue was mainly driven by the growth in volumes in Brazil, reflecting the recovery of the commercial vehicle market due to the change in the emissions rule in the previous year. On the other hand, Europe, Thailand and South Africa faced economic challenges, which negatively impacted demand and, consequently, net revenue in these regions. In addition, the exchange rate variation generated a positive impact of R$ 404.4 million in 4Q24 and R$ 744.8 million in 2024. The following table shows the performance of consolidated net operating revenue by region and by product in the periods indicated. Consolidated I.S - R$ thousand 4Q23 4Q24 Var. 2023 2024 Var. Net Operating Revenue 3,483,501 3,909,106 12.2% 14,955,220 15,331,813 2.5% Cost of Goods Sold (3,103,262) (3,426,095) 10.4% (13,446,975) (13,510,380) 0.5% Gross Profit 380,239 483,011 27.0% 1,508,245 1,821,433 20.8% 10.9% 12.4% 10.1% 11.9% Operating Expenses (196,552) (236,243) 20.2% (757,579) (798,535) 5.4% Other Operating Expenses/Revenues (9,199) (7,745) -15.8% 17,537 (24,131) -237.6% Equity Income (1,203) 8,126 n.m. 14,373 22,269 54.9% Operating Income (EBIT) 173,285 247,149 42.6% 782,576 1,021,036 30.5% 5.0% 6.3% 5.2% 6.7% Financial Results (144,649) (124,753) -13.8% (517,876) (435,573) -15.9% Income Taxes (11,686) (25,212) 115.7% (158,809) (205,379) 29.3% Minority Shareholders (24,452) (28,818) 17.9% (75,158) (115,365) 53.5% Net Income (Loss) (7,502) 68,366 n.m. 30,733 264,719 n.m. -0.2% 1.7% 0.2% 1.7% EBITDA 289,375 378,263 30.7% 1,252,863 1,524,071 21.6% 8.3% 9.7% 8.4% 9.9% Light Vehicles¹ Commercial Vehicles² Region 4Q23 4Q24 Var. 4Q23 4Q24 Var. Brazil 121 169 39.5% 30 45 48.6% India 1,292 1,336 3.4% 118 100 -15.8% North America 624 612 -1.9% 154 130 -15.6% Europe³ 596 462 -22.6% 155 110 -29.3% Global 24,195.50 24,348.44 0.6% 855 740 -13.5% Global Ex-China 15,459.97 14,897.38 -3.6% 562 546 -2.7% Region 2023 2024 Var. 2023 2024 Var. Brazil 2,204 2,381 8.0% 57 79 39.4% India 5,441 5,651 3.9% 475 445 -6.2% North America 15,683 15,441 -1.5% 624 612 -1.9% Europe³ 16,716 15,688 -6.2% 596 462 -22.6% Global 90,469 89,489 -1.1% 3,402 3,226 -5.2% Global Ex-China 61,705 59,670 -3.3% 2,286 2,139 -6.4% (1) Source: ANFAVEA (Brazil) and S&P Global (other regions) - February, 2025 (2) Source: Global Data (Commercial Vehicles) - 4Q24 (3) Consider EU27 + UK + Turkey Light Vehicles¹ Commercial Vehicles²
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Page 6 of 15 ADR: IOCJY 4.2) Cost of Goods Sold The cost of goods sold reached R$ 3,426.1 million in 4Q24 and R$ 13,510.4 million in 2024, representing an increase of 10.4% in relation to 4Q23 and 0.5% in relation to 2023. The growth in costs over the period was mainly driven by higher labor costs. 4.3) Gross Profit Gross profit reached R$ 483.0 million in 4Q24 and R$ 1,821.4 million in 2024, representing growth of 27.0% compared to 4Q23 and 20.8% compared to 2023. Gross margin increased from 10.9% in 4Q23 to 12.4% in 4Q24, and from 10.1% in 2023 to 11.9% in 2024. This growth was driven by the stabilization of the cost of goods sold, improved pricing in response to inflation in recent periods, and a more favorable product mix, impacted by the increased production of commercial vehicles in Brazil. 4.4) Operating Expenses Operating expenses (selling, general and administrative expenses and management fees) totaled R$ 236.2 million in 4Q24 and R$ 798.5 million in 2024, Net Operating Revenue- R$ thousand 4Q23 4Q24 Var. 2023 2024 Var. Aluminum Wheels - light vehicles 160,190 214,168 33.7% 667,710 783,129 17.3% Steel Wheels - light vehicles 131,773 146,000 10.8% 580,930 579,691 -0.2% Steel Wheels - commercial vehicles 217,164 236,546 8.9% 1,025,086 1,026,870 0.2% Structural Components - light vehicles 113,081 125,569 11.0% 467,092 467,973 0.2% Structural Components - commercial vehicles 279,039 392,928 40.8% 1,206,450 1,503,383 24.6% 901,248 1,115,210 23.7% 3,947,266 4,361,046 10.5% 25.9% 28.5% 26.4% 28.4% Aluminum Wheels - light vehicles 155,777 166,326 6.8% 634,389 664,512 4.7% Steel Wheels - light vehicles 332,993 377,115 13.2% 1,459,734 1,591,189 9.0% Steel Wheels - commercial vehicles 78,467 72,333 -7.8% 356,333 354,304 -0.6% Structural Components - commercial vehicles 436,594 464,604 6.4% 1,867,906 1,973,709 5.7% 1,003,831 1,080,377 7.6% 4,318,362 4,583,714 6.1% 28.8% 27.6% 28.9% 29.9% Aluminum Wheels - light vehicles 539,783 688,796 27.6% 2,459,877 2,456,889 -0.1% Steel Wheels - light vehicles 356,817 361,149 1.2% 1,314,815 1,375,668 4.6% Steel Wheels - commercial vehicles 328,430 309,170 -5.9% 1,488,783 1,203,160 -19.2% 1,225,030 1,359,116 10.9% 5,263,475 5,035,717 -4.3% 35.2% 34.8% 35.2% 32.8% Aluminum Wheels - light vehicles 195,849 180,885 -7.6% 828,823 712,754 -14.0% Steel Wheels - light vehicles 44,009 49,531 12.5% 193,826 218,184 12.6% Steel Wheels - commercial vehicles 113,534 123,987 9.2% 403,466 420,398 4.2% 353,392 354,404 0.3% 1,426,115 1,351,336 -5.2% 10.1% 9.1% 9.5% 8.8% 3,483,501 3,909,107 12.2% 14,955,220 15,331,812 2.5% 100.0% 100.0% 100.0% 100.0% Maxion Wheels 2,654,787 2,926,007 10.2% 11,413,772 11,386,748 -0.2% 76.2% 74.9% 76.3% 74.3% Maxion Structural Components 828,714 983,100 18.6% 3,541,447 3,945,065 11.4% 23.8% 25.1% 23.7% 25.7% Asia + Others Iochpe-Maxion Consolidated South America North America Europe
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Page 7 of 15 ADR: IOCJY representing an increase of 20.2% compared to 4Q23 and 5.4% compared to 2023. The increase in expenses in 4Q24 is related to the growth in general and administrative expenses, reflecting the higher value of sales and the devaluation of the Brazilian real in the period. 4.5) Other Operating Expenses/Revenues A negative result of R$ 7.7 million in 4Q24 and R$ 24.1 million in 2024, representing a reduction in relation to the negative value of R$ 9.2 million in 4Q23, but a drop in relation to the positive value of R$ 17.5 million in 2023 The main non-recurring items that impacted this line of the result in 4Q24 were restructuring expenses in the amount of R$ 6.9 million. In 4Q23, restructuring expenses amounted to R$ 0.4 million. The main non-recurring items in this line of the result for the whole of 2024 were: (i) a gain on insurance reimbursements in the amount of R$ 3.6 million, (ii) an expense of R$ 18.8 million relating to the valuation of the option to purchase a shareholding in a subsidiary and (iii) restructuring expenses in the amount of R$ 20.2 million. In 2023, the non -recurring items were: (i) a gain on insurance reimbursements of R$ 17.5 million, (ii) a gain on the exclusion of ICMS from the PIS/Cofins base of R$ 15.0 million and (iii) restructuring expenses of R$ 14.4 million. 4.6) Equity Income The equity equivalence result was positive at R$ 8.1 million in 4Q24 and R$ 22.3 million in 2024, representing a significant improvement on the negative figure of R$ 1.2 million in 4Q23 and growth compared to the positive result of R$ 14.4 million in 2023 The following table shows the amounts corresponding to Iochpe -Maxion's shareholdings, reflecting the impact of equity equivalence on the company's results
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Page 8 of 15 ADR: IOCJY 4.7) Earnings Before Interest and Tax (EBIT) Operating profit reached R$ 247.1 million in 4Q24 and R$ 1,021.0 million in 2024, representing growth of 42.6% in relation to 4Q23 and 30.5% in relation to 2023. 4.8) Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) EBITDA totaled R$ 378.3 million with an EBITDA margin of 9.7% in 4Q24 and R$ 1,524.1 million with a margin of 9.9% in 2024, an increase of 30.7% and 21.6% compared to 4Q23 and 2023, respectively. Excluding the non-recurring effects in both periods (negative impact of R$ 6.9 million in 4Q24 and R$ 0.4 million in 4Q23), as stated in item 4.5, EBITDA in 4Q24 would have grown by 32.9%, with an adjusted EBITDA margin of 9.9%, compared to a margin of 8.2% in 4Q23. For 2024, excluding non -recurring effects (negative impact of R$ 35.4 million in 2024 and positive effect of R$ 18.2 million at 2023), adjusted EBITDA would have grown by 26.3%, with an EBITDA margin of 10.2%, compared to the EBITDA margin of 8.3% in 2023. The following table shows the evolution of EBITDA 4.9) Financial result The financial result was negative by R$ 124.8 million in 4Q24 and R$ 435.6 million in 2024, a reduction of 13.8% compared to 4Q23 and 15.9% compared to 2023. The improvement in 4Q24 was driven by the reduction in financial expenses in the period, mainly due to the drop in interest expenses. In 2024, the reduction was also favored by a positive impact of R$ 18.7 million, resulting from the R$ thousand Amsted Maxion¹ Maxion Montich² Dongfeng Maxion³ Total Amsted Maxion¹ Maxion Montich² Dongfeng Maxion³ Total Var. Net Income (Loss) 3,585 (440) (4,348) (1,203) 4,335 5,301 (1,510) 8,126 n.m. R$ thousand Amsted Maxion¹ Maxion Montich² Dongfeng Maxion³ Total Amsted Maxion¹ Maxion Montich² Dongfeng Maxion³ Total Var. Net Income (Loss) 9,782 23,578 (18,986) 14,373 15,281 17,443 (10,455) 22,269 54.9% ¹Amsted-Maxion Fundição e Equipamentos Ferroviários S.A.: Related company in the railway segment (19.5% share) ² Maxion Montich S.A.: Joint business with factories of structural components in Argentina, Uruguay and Brazil (50% stake) ³ Dongfeng Maxion Wheels Ltd.: Related company that produces aluminum wheels in China (50% stake) 2023 2024 4Q23 4Q24 EBITDA Reconciliation - R$ Thousand 4Q23 4Q24 Var. 2023 2024 Var. Net Income (Loss) (7,502) 68,366 n.m. 30,733 264,719 n.m. Minority Shareholders 24,452 28,818 17.9% 75,158 115,365 53.5% Income Taxes and Social Contribution 11,686 25,212 115.7% 158,809 205,379 29.3% Financial Results 144,649 124,753 -13.8% 517,876 435,573 -15.9% Depreciation / Amortization 116,090 131,114 12.9% 470,288 503,035 7.0% EBITDA 289,375 378,263 30.7% 1,252,863 1,524,071 21.6%
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Page 9 of 15 ADR: IOCJY monetary restatement and interest on precatory payments, recognized in 2Q24, in accordance with final and unappealable court decisions. 4.10) Net Profit Net profit of R$ 68.4 million in 4Q24 (earnings per share of R$ 0.45728) and R$ 264.7 million in 2024 (earnings per share of R$ 1.76635), an improvement on the net loss of R$ 7.5 million in 4Q23 (loss per share of R$ 0.04931) and an increase on the net profit of R$ 30.7 million in 2023 (earnings per share of R$ 0.20415) The net result was negatively impacted by the constitution of a deferred income tax provision (non-cash) related to the exchange rate variation of the local currencies of the Company's subsidiaries in Mexico, the Czech Republic and Turkey compared to their functio nal currencies in the amount of R$ 2.2 million in 4Q24 and R$ 75.2 million in 2024, and by the non -recurring items mentioned in item 4.5 above. 5) CAPITAL EXPENDITURES Investments reached R$ 244.6 million in 4Q24 and R$678.2 million in 2024, an increase of 10.5% compared to 4Q23 and 22.9% compared to 2023. The main investments made during 2024 were aimed at increasing capacity to meet demand from the commercial vehicle segment in North America and building the aluminum wheel plant for commercial vehicles in Europe. The exchange rate variation impacted investments by R$ 30.9 million in 4Q24 and R$52.9 million throughout 2024. The effective amount of cash outflow related to new investments in 2024 was R$590.9 million, compared to R$505.2 million in 2023. 6) LIQUIDITY AND INDEBTEDNESS The cash and cash equivalents position on December 31, 2024 was R$ 2,463.5 million, of which 48.0% was in Brazilian reais and 52.0% in other currencies. Consolidated gross indebtedness (loans, financing and debentures, current and non-current) on December 31, 2024 reached R$ 6,388.8 million, with R$ 614.7 million (9.6%) recorded in current liabilities and R$5,774.1 million (90.4%) in non-current liabilities.
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Page 10 of 15 ADR: IOCJY The liquidity ratio, the ratio of total liquidity (considering undrawn credit lines in the amount of R$ 760.0 million) to short-term debt, was 5.24x at the end of 4Q24 compared to 2.12x at the end of 4Q23. The main indexes of consolidated gross debt at the end of 4Q24 were: (i) lines in Brazilian reais, which accounted for 43.3% (CDI + 1.6% p.a.), (ii) lines in euros (3.5% p.a.) with 34.3%, and (iii) lines in dollars (SOFR + 1.1% p.a.) with 19.9%. Consolidated net debt4 on December 31, 2024 reached R$ 3,637.2 million, a reduction of 1.0% compared to December 31, 2023, and a reduction of 2.0% compared to September 30, 2024. The devaluation of the real had a negative impact on net debt on December 31, 2024, increasing it by R$ 407.7 million compared to December 31, 2023 and R$ 78.8 million compared to September 30, 2024. Net debt at the end of 4Q24 represented 2.39x EBITDA for the last 12 months, while at the end of 4Q23 it represented 2.93x. 7) SHAREHOLDERS' EQUITY Consolidated shareholders' equity reached R$ 5,071.0 million (equity value per share of R$ 32.99) on December 31, 2024, an increase of 24.1% in relation to the shareholders' equity reached on December 31, 2023 (R$ 4,085.0 million and equity value per share of R$ 26.57). Equity attributable to controlling shareholders reached R$ 4,557.9 million (equity value per share of R$ 29.65) on December 31, 2024, an increase of 23.4% in relation to the equity attributable to controlling shareholders reached on December 31, 2023 (R$ 3,693.6 million and equity value per share of R$ 24.03). The change in shareholders' equity is related to the result for the period and the exchange rate variation that impacts the value of net assets abroad (equity valuation adjustment). 8) CAPITAL MARKETS Iochpe-Maxion's common shares (B3: MYPK3) ended 4Q24 quoted at R$ 11.28, an increase of 3.4% in the quarter and a decrease of 12.5% in the last 12 months. At the end of 4Q24, Iochpe -Maxion reached a market cap of R$ 1,734.0 million (R$ 1,981.4 million at the end of 4Q23). 4 Gross debt plus derivative financial instruments current and non-current liabilities, less cash and cash equivalents plus derivative financial instruments current and non -current assets.
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Page 11 of 15 ADR: IOCJY Share Variation - Last 12 months In 4Q24, Iochpe-Maxion shares had an average daily trading volume on B3 of R$13.8 million (R$18.5 million in 4Q23) and an average daily number of 5,348 trades (6,282 trades in 4Q23) Average Daily Volume 9) EARNINGS Iochpe-Maxion's Bylaws and Earnings Allocation Policy provide for the distribution of 37% of net income (discounting any accumulated losses from previous years) as a mandatory dividend. Considering (i) the net profit in 2024 of R$264.7 million, and (ii) th e adoption of the cost attributed to fixed assets and their depreciation, which generated an addition of R$3.8 million to net profit; the amount of the mandatory dividend for the 2024 fiscal year is R$99.3 million, of which R$70.2 million, or R$0.468685 pe r common share, will be distributed to shareholders in the form of interest on equity ("JCP") net of taxes, approved by the Board of Directors at meetings held on June 26, 2024 and September 25, 2024, as provided for in article 42 of the Bylaws, with the c utoff date for identifying the shareholders entitled to JCP being July 1, 2024 and -12,49% -10,36% -30,00% -20,00% -10,00% 0,00% 10,00% 20,00% 30,00% 40,00% 50,00% 60,00% dez/23 jan/24 fev/24 mar/24 abr/24 mai/24 jun/24 jul/24 ago/24 set/24 out/24 nov/24 dez/24 MYPK3 Ibovespa 13.032 9.275 15.793 12.236 19.250 13.496 11.789 13.107 14.875 11.544 18.206 12.832 4.363 3.278 4.203 4.096 4.941 4.406 4.266 4.718 4.284 4.639 6.571 5.229 jan/24 fev/24 mar/24 abr/24 mai/24 jun/24 jul/24 ago/24 set/24 out/24 nov/24 dez/24 Volume Trades
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Page 12 of 15 ADR: IOCJY October 1, 2024, respectively; and R$29.1 million in dividends, equivalent to R$0.1946212 per share, already deducted from the JCP mentioned above, with the cut -off date for identifying the shareholders who will be entitled to receive the dividends being March 6, 2025. 10) SUBSEQUENT EVENTS In January 2025, the Company signed an agreement with the Financier of Studies and Projects ("FINEP") to finance expenses incurred in the preparation and execution of the strategic innovation plan approved by FINEP, in the amount of R$357.3 million, which covers the search for new materials, special processes applied to electrification, recycling and digital transformation. The funds will be made available in up to 48 month s, which is the period of execution of the projects and the grace period for the first repayment installment of the financing, with a total of 145 installments and interest of TR + 2.3% p.a.. In February 2025, the company carried out (i) the 15th issue of 500,000 simple debentures, totaling R$500 million, with a term of 5 years, entitled to the payment of half -yearly remunerative interest equivalent to 100% CDI + 1.55% per year; and (ii) the ea rly redemption of all the debentures of its 12th issue. The redemption took place through the payment of the nominal unit value of the debentures, plus their remuneration, calculated pro rata temporis, from the date of payment of the immediately preceding remuneration until the date of actual payment, plus the premium provided for and calculated under the terms of the respective deed of issue. 11) ARBITRATION CLAUSE The Company is bound to arbitration at the Novo Mercado Arbitration Chamber, in accordance with the Commitment Clause in its By-laws. 12) MANAGEMENT´S STATEMENT In compliance with the provisions of article 27 of CVM Resolution 80/22, the Board of Executive Officers declares that it has reviewed, discussed and agreed with the individual and consolidated financial statements as of December 31, 2024 and with the respective independent auditor's report. The Company's financial statements presented herein are in accordance with the criteria of Brazilian corporate law, and have been prepared in accordance with accounting practices adopted in Brazil and with the
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Page 13 of 15 ADR: IOCJY International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). EBITDA should not be considered as an alternative to net income, as an indicator of the Company's operating performance, or as an alternative to cash flow as an indicator of liquidity. The company's management believes that EBITDA is a practical measure of its operating performance and allows comparison with other companies. The company calculates EBITDA in accordance with CVM Resolution 156, regulated on August 1, 22. EBITDA represents net income (loss) before interest, income tax, social contribution and depreciation/amortization. Cruzeiro, February 26, 2025.
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Page 14 of 15 ADR: IOCJY 12) APPENDIX 12.1) Income Statement (Consolidated) Consolidated I.S - R$ thousand 4Q23 4Q24 Var. 2023 2024 Var. Net Operating Revenue 3,483,501 3,909,106 12.2% 14,955,220 15,331,813 2.5% Cost of Goods Sold Raw Material (1,856,330) (1,983,810) 6.9% (8,255,825) (7,954,076) -3.7% Labor (555,444) (657,013) 18.3% (2,313,487) (2,607,249) 12.7% Others (691,488) (785,812) 13.6% (2,877,664) (2,949,595) 2.5% (3,103,262) (3,426,095) 10.4% (13,446,975) (13,510,380) 0.5% Gross Profit 380,239 483,011 27.0% 1,508,245 1,821,433 20.8% 10.9% 12.4% 10.1% 11.9% Operating Expenses Selling expenses (21,137) (19,572) -7.4% (81,674) (76,150) -6.8% General and administrative (171,319) (210,154) 22.7% (658,158) (699,422) 6.3% Management fees (4,096) (6,517) 59.1% (17,747) (22,963) 29.4% Other (9,199) (7,745) -15.8% 17,537 (24,131) -237.6% (205,751) (243,988) 18.6% (740,042) (822,666) 11.2% Equity Income (1,203) 8,126 n.m. 14,373 22,269 54.9% Operating Income (EBIT) 173,285 247,149 42.6% 782,576 1,021,036 30.5% 5.0% 6.3% 5.2% 6.7% Financial Results Financial Revenue 61,540 48,758 -20.8% 216,151 220,456 2.0% Financial Expenses (193,674) (169,194) -12.6% (702,359) (641,289) -8.7% Foreing exchange gains (losses) (12,515) (4,317) -65.5% (31,668) (14,740) -53.5% (144,649) (124,753) -13.8% (517,876) (435,573) -15.9% Earnings After Financial Results 28,636 122,396 n.m. 264,700 585,463 121.2% 0.8% 3.1% 1.8% 3.8% Income Taxes (11,686) (25,212) 115.7% (158,809) (205,379) 29.3% Minority Shareholders (24,452) (28,818) 17.9% (75,158) (115,365) 53.5% Net Income (Loss) (7,502) 68,366 n.m. 30,733 264,719 n.m. -0.2% 1.7% 0.2% 1.7% EBITDA 289,375 378,263 30.7% 1,252,863 1,524,071 21.6% 8.3% 9.7% 8.4% 9.9%
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Page 15 of 15 ADR: IOCJY 12.2) Balance Sheet (Consolidated) R$ thousand dec-23 dec-24 dec-23 dec-24 CURRENT CURRENT Cash and Cash Equivalents 2,962,366 2,463,475 Borrowings, Financing and Debentures 1,631,599 614,709 Trade Receivables 1,261,050 1,449,118 Trade Payables 1,906,468 2,267,725 Inventory 2,320,305 2,458,784 Tax obligations 126,797 210,899 Recoverable Taxes 717,498 687,164 Social and Labor Obligations 451,023 527,430 Prepaid Expenses 80,481 122,362 Advances from Customers 47,539 50,633 Derivative Financial Instruments 28,277 43,488 Derivative Financial Instruments 18,662 235 Other 144,175 166,556 Dividends and Interests on Capital 13,465 99,673 7,514,152 7,390,947 Other 421,833 534,855 4,617,386 4,306,159 LONG TERM LONG TERM Borrowings, Financing and Debentures 5,133,934 5,774,051 Recoverable taxes 234,431 133,072 Provision for tax, civil and labor risks 78,965 62,577 Deferred income tax and social contribution 255,413 334,035 Deferred Income Tax and Social Contribution 47,568 75,899 Escrow deposits 69,889 76,742 Derivative Financial Instruments 489 - Derivative Financial Instruments 119,229 244,805 Pension Plan Liabilities 424,222 477,376 Other receivables 93,672 130,095 Other 146,523 194,327 Investments 159,767 230,043 5,831,701 6,584,230 Property, plant and equipment 4,043,995 4,968,505 EQUITY Intangible assets 1,969,307 2,360,020 Issued Capital 1,576,954 1,576,954 Right of use 74,261 93,107 Earning reserves 645,808 807,705 7,019,964 8,570,424 Capital reserves 3,061 3,061 Treasury Shares (55,539) (62,353) Equity valuation adjustment 1,523,342 2,232,538 Shareholders' Equity Attributed to Controlling Shareholders 3,693,626 4,557,905 Noncontrolling Interests in Subsidiaries' Equity 391,403 513,077 4,085,029 5,070,982 TOTAL ASSETS 14,534,116 15,961,371 TOTAL LIABILITIES 14,534,116 15,961,371 ASSETS LIABILITIES