Vulcabras S.A.

Quarterly financial information at September 30, 2021

(A Free Translation of the original report in Portuguese as published in Brazil contain quarterly financial information prepared in accordance with accounting practices adopted in Brazil and IFRS)

KPDS 926067

Contents

Report on the review of quarterly information - ITR

3

Balance sheets

5

Statements of profit or loss

6

Statements of comprehensive income

7

Statement of changes in equity - Parent company and Consolidated

8

Statements of cash flows - Indirect method

9

Statements of added value

10

Notes to the quarterly financial information

11

KPMG Auditores Independentes Ltda.

Ed. BS Design - Avenida Desembargador Moreira, 1300 SC 1001 - 10º Andar - Torre Sul - Aldeota 60170-002 - Fortaleza/CE - Brasil

Telefone +55 (85) 3457-9500 kpmg.com.br

Report on the review of

Quarterly information - ITR

To the Shareholders of

Vulcabras S/A

Horizonte - CE

Introduction

We have reviewed the interim, individual and consolidated financial information of Vulcabras S/A. ("Company"), contained in the Quarterly Information - ITR Form for the quarter ended September 30, 2021, which comprise the balance sheet as of September 30, 2021 and related statements of profit or loss, of comprehensive income for the three and nine-month periods then ended, of changes in equity and cash flows for the nine-month period then ended, including the explanatory notes.

The Company's Management is responsible for the preparation of the individual and consolidated interim financial information in accordance with CPC 21(R1) and International Standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as for the presentation of this information in a manner consistent with the standards issued by the Brazilian Securities and Exchange Commission (CVM), applicable to the preparation of the Quarterly Information. Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of the review

We conducted our review in accordance with the Brazilian and international review standards for interim information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists in asking questions, chiefly to the persons in charge of financial and accounting affairs, and in applying analytical procedures and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing 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.

KPMG Auditores Independentes Ltda., uma sociedade simples brasileira, de responsabilidade limitada e firma-membro da organização global KPMG de firmas-membro independentes licenciadas da KPMG International Limited, uma empresa inglesa privada de responsabilidade limitada.

KPMG Auditores Independentes Ltda., a Brazilian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

3

Conclusion on the individual and consolidated interim information

Based on our review, we are not aware of any facts that would lead us to believe that the individual and consolidated interim financial information included in the quarterly information referred to above was not prepared, in all material respects, in accordance with CPC 21 (R1) and IAS 34, applicable to the preparation of Quarterly Information - ITR, and presented in a manner consistent with the standards issued by the Securities Commission.

Other matters - Statements of added value

The aforementioned individual and consolidated statements of added value for the nine-month period ended September 30, 2021, prepared under responsibility of Company's Management, and presented as supplementary information for IAS 34 purposes. These statements have been subject to review procedures performed in conjunction with the review of the quarterly information, in order to determine whether they are reconciled with the interim financial information and book records, as applicable, and whether their form and content are in accordance with the criteria defined in Technical Pronouncement CPC 09 - Statement of Added Value. Based on our review, we are not aware of any facts that may lead us to believe that these statements of added value have not been prepared, in all material respects, in accordance with the criteria set forth in this Standard and consistently with respect to the individual and consolidated interim financial information taken as a whole.

Fortaleza, November 09, 2021

KPMG Auditores Independentes Ltda

CRC SP-014428/O-6S-CE

Original in Portuguese signed by

Marcelo Pereira Gonçalves

Accountant CRC 1SP220026/O-3

KPMG Auditores Independentes Ltda., uma sociedade simples brasileira, de responsabilidade limitada e firma-membro da organização global KPMG de firmas-membro independentes licenciadas da KPMG International Limited, uma empresa inglesa privada de responsabilidade limitada.

KPMG Auditores Independentes Ltda., a Brazilian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

4

Vulcabras S.A. (Publicly-held company)

Balance sheets

September 30, 2021 and December 31, 2020 (In thousands of reais)

Consolidated

Parent company

Consolidated

Parent company

Assets

Note

09/30/2021

12/31/2020

09/30/2021

12/31/2020

Liabilities

Note

09/30/2021

12/31/2020

09/30/2021

12/31/2020

Cash and cash equivalents

4

71,753

158,552

218

18

Suppliers

16

136,539

62,457

86

289

Interest earning bank deposits

5

78,355

80,949

78,355

80,949

Loans and financing

17

290,863

127,894

-

-

Trade accounts receivable

6

587,797

574,104

-

-

Taxes payable

10,654

11,938

122

97

Inventories

7

573,826

256,924

-

-

Salaries and vacation payable

62,540

30,105

11

-

Recoverable taxes

8

82,116

18,330

567

563

Provisions

19

23,689

22,021

398

765

Income tax and social contribution

9a

5,012

5,108

545

154

Lease liabilities

20

9,147

8,343

-

-

Amounts receivable from disposal of operation

3,440

3,440

-

-

Commissions payable

14,311

16,121

-

-

Other accounts receivable

10,588

13,478

196

736

Dividends and profits payable

86,015

-

86,015

-

Total current assets

1,412,887

1,110,885

79,881

82,420

Other trade payables

24,318

26,296

191

217

Total current liabilities

658,076

305,175

86,823

1,368

Interest earning bank deposits

5

10,013

9,594

2

2

Trade accounts receivable

6

3,631

-

-

-

Loans and financing

17

79,416

183,735

-

-

Recoverable taxes

8

62,677

6,787

1,815

1,805

Loans with related parties

11

17,932

17,632

202,775

197,763

Deferred income tax and social contribution

9b

1,246

1,359

-

-

Provisions

19

37,927

34,542

-

-

Judicial deposits

10

14,166

15,080

389

543

Deferred taxes on revaluation of property, plant and equipment

9b

2,304

2,406

-

-

Loans with related parties

11

-

-

123,659

120,602

Lease liabilities

18

13,673

10,187

-

-

Amounts receivable from disposal of operation

2,580

5,160

-

-

Provision for loss with investment

12

-

-

131

124

Assets for sale

194

194

-

-

Other trade payables

183

183

-

-

Other accounts receivable

2,767

2,702

1,299

1,537

Total non-current liabilities

151,435

248,685

202,906

197,887

Long-term assets

97,274

40,876

127,164

124,489

Equity

Capital

20

1,106,717

1,106,717

1,106,717

1,106,717

Investments

12

68,244

59,999

1,357,106

1,115,038

Revaluation reserves

20

4,472

4,670

4,472

4,670

Investment property

5

2,121

-

2,115

Capital reserves

20

4,288

3,034

4,288

3,034

Right-of-use

18

19,646

15,145

-

-

Equity valuation adjustments

20

22,702

21,114

22,702

21,114

Property, plant and equipment

13

276,954

241,311

2

160

Retained earnings (losses)

136,356

(10,457)

136,356

(10,457)

Intangible assets

14

209,348

208,917

111

111

Equity attributable to controlling shareholders

1,274,535

1,125,078

1,274,535

1,125,078

574,197

527,493

1,357,219

1,117,424

Non-controlling interest

312

316

-

-

Total non-current assets

671,471

568,369

1,484,383

1,241,913

Total equity

1,274,847

1,125,394

1,274,535

1,125,078

Total liabilities

809,511

553,860

289,729

199,255

Total Assets

2,084,358

1,679,254

1,564,264

1,324,333

Total liabilities and equity

2,084,358

1,679,254

1,564,264

1,324,333

See the accompanying notes to the quarterly financial information.

5

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Vulcabras|azaleia SA published this content on 11 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2021 13:06:03 UTC.