Kepler Weber S A : ITR - 3Q23

Independent auditors' report on review of interim financial statements

1

Interim financial statements

Balance sheets

3

Income statements

5

Statements of comprehensive income

6

Statements of changes in equity

7

Statements of cash flows - indirect method

8

Statements of value added

9

Explanatory Notes to the individual and consolidated interim financial statements

10

http://ri.kepler.com.br/

Interim financial statements

2

Parent Company

Consolidated

Note

09/30/2023

12/31/2022

09/30/2023

12/31/2022

Assets

Current assets

Cash and cash equivalents

9

5,049

4,630

313,671

254,454

Short-term investments

9

-

-

6,365

83,423

Trade accounts receivable

10

-

-

220,750

189,317

Inventories

11

-

-

299,562

311,618

Recoverable taxes

12

12,225

8,712

66,628

53,987

Prepaid expenses

351

433

4,305

4,896

Related parties

21

2,523

62,300

-

-

Other receivables

15

-

17,199

15,012

Total current assets

20,163

76,075

928,480

912,707

Non-current assets

Long-term assets

Trade accounts receivable

10

-

-

11,856

251

Prepaid expenses

18

27

18

161

Recoverable taxes ANC

12

-

-

17,704

30,670

Court deposits

-

-

3,441

2,822

Deferred taxesDeferred Taxes

13

4,971

3,264

48,701

64,507

Other receivables

-

-

1,781

16,789

4,989

3,291

83,501

115,200

Investments

14

701,637

639,417

93

4

Investment property

15

32,518

33,823

1,415

1,467

Property, plant and equipment

16

16

28

244,716

208,040

Intangible assets

17

1,280

1,280

121,368

32,465

Right-of-use

6

-

41

2,344

3,895

735,451

674,589

369,936

245,871

Total non-current assets

740,440

677,880

453,437

361,071

Total assets

760,603

753,955

1,381,917

1,273,778

http://ri.kepler.com.br/

Interim financial statements

3

Parent Company

Consolidated

Note

09/30/2023

12/31/2022

09/30/2023

12/31/2022

Liabilities

Current liabilities

Suppliers

23

1,034

826

138,384

70,557

Loans and financing

18

-

-

129,044

78,748

Accrued salaries and vacation pay

2,437

4,897

45,934

43,707

Advances from clients

-

-

164,908

220,219

Taxes payable

24

1,068

1,113

5,959

5,067

Income and social contribution taxes payable

24

-

204

7,691

5,222

Commissions payable

-

-

12,152

16,217

Dividends and interest on equity capital payable

-

77,690

-

77,690

Provision for warranties

-

-

21,244

17,073

Other payables

1,674

53

24,889

36,091

Lease finance agreements

6

-

43

1,816

3,712

Total current liabilities

6,213

84,826

552,021

574,303

Non-current liabilities

Loans and financing - PNC

18

-

-

78,000

88,043

Suppliers finance expenses

23

-

-

9

-

Provisions for tax, civil and labor risks

25

-

497

12,588

13,150

Taxes payable sheets

24

68

655

68

655

Contingent consideration

4

54,960

-

54,960

-

Related parties Related Parties

21

15,770

70,707

-

-

Other payables

1,974

-

1,974

-

Lease finance agreements

6

-

-

679

357

Total non-current liabilities

72,772

71,859

148,278

102,205

Shareholders' Equity

Capital

27

244,694

144,694

244,694

144,694

Treasury shares

27

(22,303)

(7,806)

(22,303)

(7,806)

Capital Reserves

27

6,084

3,429

6,084

3,429

Revaluation reserves

27

158

158

158

158

Equity valuation adjustment

27

24,797

26,139

24,797

26,139

Profit reserve

27

296,094

430,656

296,094

430,656

Retained earnings for the period

132,094

-

132,094

-

Total shareholdrs' equity

681,618

597,270

681,618

597,270

Total liabilities and shareholdrs' equity

760,603

753,955

1,381,917

1,273,778

http://ri.kepler.com.br/

Interim financial statements

4

Parent Company

Consolidated

Note

3Q23

3Q22

9M23

9M22

3Q23

3Q22

9M23

9M22

Net revenue

28

-

-

-

-

405,628

515,754

1,009,929

1,313,423

Cost of goods sold and services rendered

30

-

-

-

-

(292,745)

(330,920)

(712,562)

(838,183)

Gross profit

-

-

-

-

112,883

184,834

297,367

475,240

Operating revenues (expenses)

Selling expenses

30

-

-

-

-

(24,256)

(24,949)

(66,923)

(68,600)

Impairment losses on financial assets

30

-

-

-

-

(1,032)

(185)

(1,106)

(452)

Administrative and general expenses

30

(5,608)

(3,321)

(15,668)

(10,267)

(23,125)

(17,775)

(64,317)

(50,256)

Other operating revenues (expenses), net

29

4,460

7,270

7,278

17,686

14,764

6,397

28,928

18,759

Income (loss) from equity Interest

14

66,320

113,118

155,371

265,694

-

-

-

-

Operating profit

65,172

117,067

146,981

273,113

79,234

148,322

193,949

374,691

Finance costs

31

(812)

(312)

(2,452)

(873)

(8,200)

(10,829)

(34,358)

(27,921)

Finance income

31

189

386

1,142

1,141

11,177

15,866

39,031

27,766

Profit before income taxes

64,549

117,141

145,671

273,381

82,211

153,359

198,622

374,536

Current income and social contribution taxes

13

746

(1,402)

(43)

(3,597)

(16,713)

(29,058)

(35,331)

(78,822)

Deferred income and social contribution taxes

13

1,296

(91)

5,562

(328)

1,093

(8,653)

(12,101)

(26,258)

Net income for the period

66,591

115,648

151,190

269,456

66,591

115,648

151,190

269,456

Basic and diluted earnings (loss) per share (Reais/shares)

32

0.3767

0.6473

1.0293

2.1699

0.3767

0.6473

1.0293

2.1699

http://ri.kepler.com.br/

Interim financial statements

5

Parent Company

Consolidated

3Q23

3Q22

9M23

9M22

3Q23

3Q22

9M23

9M22

Net income for the period

66,591

115,648

151,190

269,456

66,591

115,648

151,190

269,456

Total comprehensive income for the period

66,591

115,648

151,190

269,456

66,591

115,648

151,190

269,456

http://ri.kepler.com.br/

Interim financial statements

6

Capital Reserves

Profit reserves

Fair

value

Reserve for

Treasury

of

Equity

Tax

investments

Proposed

Share

share

Tax

stock

Revaluation

valuation

Legal

incentive

and working

additional

Retained

capital

reserve

incentives

options

reserve

adjustment

Reserve

reserve

capital

dividends

earnings

Total

Balances as of December 31, 2021

144.694

(12.417)

617

1.321

158

27.950

25.022

57.257

158.703

58.325

-

461.630

Treasury shares

-

(9,954)

-

-

-

-

-

-

-

-

-

(9,954)

Cancelation of shares

-

14,047

-

-

-

-

-

-

(14,047)

-

-

-

Fair value of stock options

-

-

-

1,590

-

-

-

-

-

-

-

1,590

Reversal of fair value of stock options

-

518

-

(666)

-

-

-

-

-

-

148

-

Realization of attributable cost through depreciation

-

-

-

-

-

(2,064)

-

-

-

-

2,064

-

Taxes on the realization of attributable cost

-

-

-

-

-

701

-

-

-

-

(701)

-

Supplementary dividends

-

-

-

-

-

-

-

-

-

(58,325)

-

(58,325)

Interim dividends

-

-

-

-

-

-

-

-

(14,340)

-

-

(14,340)

Net income for the period

-

-

-

-

-

-

-

-

-

-

269,456

269,456

Appropriations:

-

-

-

-

-

-

-

-

-

-

(18,678)

(18,678)

Interest on equity capital

-

-

-

-

-

-

-

-

-

-

(18,678)

(18,678)

Balance as of September 30, 2022

144,694

(7,806)

617

2,245

158

26,587

25,022

57,257

130,316

-

252,289

631,379

Balance as of December 31, 2022

144,694

(7,806)

617

2,812

158

26,139

28,940

57,257

344,459

-

-

597,270

Capital increase

100,000

-

-

-

-

-

-

-

(100,000)

-

-

-

Treasury shares

-

(16,204)

-

-

-

-

-

-

-

-

-

(16,204)

Transfer of shares

-

1,707

-

(2,115)

-

-

-

-

-

-

-

(408)

Fair value of stock options

-

-

-

4,770

-

-

-

-

-

-

-

4,770

Realization of attributable cost through depreciation

-

-

-

-

-

(2,033)

-

-

-

-

2,033

-

Taxes on the realization of attributable cost

-

-

-

-

-

691

-

-

-

-

(691)

-

Interim dividends

-

-

-

-

-

-

-

-

(34,562)

-

-

(34,562)

Net income for the period

-

-

-

-

-

-

-

-

-

-

151,190

151,190

Appropriations:

-

-

-

-

-

-

-

-

-

-

(20,438)

(20,438)

Interest on equity capital

-

-

-

-

-

-

-

-

-

-

(20,438)

(20,438)

Balance as of September 30, 2023

244,694

(22,303)

617

5,467

158

24,797

28,940

57,257

209,897

-

132,094

681,618

http://ri.kepler.com.br/

Interim financial statements

7

Parent Company

Consolidated

9M23

9M22

9M23

9M22

Cash flows from operating activities

Net income for the period

151,190

269,456

151,190

269,456

Adjustments for:

Depreciation and amortization

1,358

1,421

25,538

22,293

Provisions for tax, civil and labor risks

(497)

(3)

(562)

447

Impairment loss on inventories

-

-

1,886

2,748

Provisions for warranties

-

-

4,171

1,662

Impairment losses on financial assets

-

-

1,106

452

Other provisions

(5)

-

(12,149)

-

Cost of property, plant and equipment / intangible assets written off

-

-

(61)

1,832

Net finance income

1,327

188

4,425

6,211

Current income and social contribution tax expenses

43

3,597

35,331

78,822

Deferred income and social contribution tax expenses

(5,562)

328

12,101

26,258

Income (loss) from equity Interest

(155,371)

(265,694)

-

-

(7,517)

9,293

222,976

410,181

Changes in assets and liabilities

Trade accounts receivable

-

-

(33,827)

(90,085)

Inventories

-

-

16,476

(51,884)

Recoverable taxes

(3,513)

(3,036)

1,892

(10,696)

Other assets

3,805

(2,136)

31,442

1,390

Suppliers

208

379

64,320

37,345

Accrued salaries and vacation pay

(2,460)

1,824

(1,699)

20,723

Taxes payable

(632)

(1,823)

(860)

4,577

Advances from clients

-

-

(57,874)

(20,304)

Other payables

3,601

1,700

3,580

5,098

Cash flows (invested in) received from operating activities

(6,508)

6,201

246,426

306,345

Interest paid on loans and financing and related party loans

(1,426)

-

(17,948)

(7,492)

Income and social contribution taxes paid

(1,137)

(5,110)

(35,487)

(69,391)

Net cash (invested in) received from operating activities

(9,071)

1,091

192,991

229,462

Cash flows from investing activities

Acquisition of property, plant and equipment and intangible assets

-

-

(53,621)

(31,110)

Short-term investments - redemption

-

5,091

374,760

5,708

Short-term investments - investment

-

(9,689)

(297,224)

(99,113)

Dividends and interest on equity capital

258,690

108,097

-

-

Acquisition of subsidiary, net of acquired cash

(45,262)

-

(45,262)

-

Net cash (invested in) received from investing activities

213,428

103,499

(21,347)

(124,515)

Cash flows from financing activities

Treasury shares

(16,204)

(9,954)

(16,204)

(9,954)

Amortization of loans and financing

-

-

(60,000)

(14,480)

Proceeds from loans and financing

-

-

100,000

100,000

Dividends and interest on equity capital paid

(132,690)

(108,551)

(132,690)

(108,551)

Related party loan transactions

(55,000)

10,000

-

-

Lease consideration paid

(44)

(99)

(3,533)

(3,378)

Net cash used in financing activities

(203,938)

(108,604)

(112,427)

(36,363)

Increase/Decrease in cash and cash equivalents

419

(4,014)

59,217

68,584

Statement of increase (decrease) in cash and cash equivalents

419

(4,014)

59,217

68,584

At the beginning of the period

4,630

11,120

254,454

131,818

At the end of the period

5,049

7,106

313,671

200,402

http://ri.kepler.com.br/

Interim financial statements

8

Parent Company

Consolidated

9M23

9M22

9M23

9M22

Operating revenues

Sales of merchandise, products and services

-

-

1,191,900

1,546,086

Impairment losses on financial assets

-

-

(1,106)

(452)

Cost of goods, merchandise and services sold

-

-

(692,357)

(872,940)

Materials, energy, third-party services and others

(11,428)

(2,216)

(118,034)

(86,197)

Gross value added

(11,428)

(2,216)

380,403

586,497

Depreciation and amortization

(1,358)

(1,421)

(25,538)

(22,293)

Net value added generated by the Company

(12,786)

(3,637)

354,865

564,204

Value added received by transfer

180,208

289,671

48,590

3,945

Share of profit of equity-accounted investees

155,371

265,694

-

-

Finance income

1,138

1,141

28,172

19,037

Foreign exchange/monetary gains

3

-

10,859

9,058

Deferred income and social contribution taxes

5,562

(328)

(12,101)

(26,258)

Rents and royalties

18,134

23,148

4

14

Others

-

16

21,656

2,094

Total added value payable

167,422

286,034

403,455

568,149

Distribution of value added

167,422

286,034

403,455

568,149

Employees

7,907

9,096

135,378

108,014

Direct remuneration

848

3,429

101,326

78,116

Benefits

283

221

15,082

13,457

FGTS

-

-

7,038

5,924

Management remuneration

6,776

5,446

6,776

4,992

Other

-

-

5,156

5,525

Termination benefits

-

-

2,027

1,122

Other employee expenses

-

-

3,129

4,403

Taxes

5,930

7,047

47,965

95,541

Federal

5,761

6,890

50,379

89,727

State

-

-

(3,293)

5,271

Municipal

169

157

879

543

Return on debt capital

2,395

435

68,922

95,138

Interest and other finance charges

1,743

29

23,527

15,101

Commissions

-

-

35,798

44,456

Foreign exchange losses

49

-

7,623

10,454

Other third-party expenses

603

406

1,974

25,127

Return on equity capital

151,190

269,456

151,190

269,456

Retained earnings

151,190

269,456

151,190

269,456

http://ri.kepler.com.br/

Interim financial statements

9

% of direct and indirect ownership

interest

09/30/2023

12/31/2022

Direct subsidiaries

Kepler Weber Industrial S.A. ("KWI")

100%

100%

Procer Automação S.A. ("Procer")

100%

-

Specific-purpose entity - indirect subsidiary

Kepler Weber FIAGRO-Direitos Creditórios - ("FIDC KWI")

100%

-

http://ri.kepler.com.br/

Interim financial statements

10