Padtec S A : 1Q24 Quarterly Results

Padtec Holding S.A.

Interim accounting information for the quarter ended March 31, 2024, accompanied by the Report on the Review of Quarterly Information

Padtec Holding S.A.

Content

	Page
Report on the Review of Quarterly Information	2
Presentation of the individual and consolidated interim financial statements	4
Management's notes to the individual and consolidated interim financial statements	11

Report on the Review of individual and consolidated Quarterly Information

To the:

Shareholders and Management

Padtec Holding S.A.

Campinas - SP

Introduction

We have reviewed the individual and consolidated interim financial information of Padtec Holding S.A. ("Company"), included in the Quarterly Information Form (ITR) for the quarter ended March 31, 2024, which comprises the statement of financial position as of March 31, 2024 and the respective statements of income, comprehensive income, changes in shareholders equity and of cash flows for the three- month period then ended, including the explanatory notes.

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

Scope of the review

We conducted our review in accordance with Brazilian and international standards on reviews of interim financial 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 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 the 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.

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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 has not been prepared, in all material respects, in accordance with CPC 21(R1) and IAS 34, issued by the IASB, applicable to the preparation of Quarterly Information - ITR, and presented in accordance with the standards issued by the Brazilian Securities Commission (CVM).

Other matters

Statements of value added

The individual and consolidated interim financial information referred to above includes the individual and consolidated statements of value added for the three-month period ended at March 31, 2024, prepared under the responsibility of Company's management, and presented as supplementary information for IAS 34 purposes. The statements were submitted to review procedures carried out together with the review of the Company's interim financial information to conclude they are reconciled with interim financial information and accounting records, as applicable, and its form and content are in accordance with the criteria defined in CPC 09 (R1) - Statement of Value Added. Based on our review, nothing has come to our attention that causes us to believe that those statements were not prepared, in all material respects, in accordance with the criteria set forth in this Standard with respect to the individual and consolidated interim financial information taken as a whole.

São Paulo, May 08, 2024.

Fernando Radaich de Medeiros

Accountant CRC 1SP 217.532/O-6

RSM Brasil Auditores Independentes Ltda.

CRC 2SP-030.002/O-7

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Padtec Holding S.A.

Balance sheets

As of march 31, 2024 and december 31, 2023

(Amounts In thousands of Brazilian reais - R$, unless otherwise indicated)

		Parent Company			Consolidated
	NOTE	03/31/24	12/31/23	03/31/24	12/31/23
ASSETS
CURRENT
Cash and cash equivalents	4	2	-	29,937	50,456
Tradable securities	5	-	-	4,112	9,920
Trade accounts receivable	6	-	-	140,117	125,809
Inventories	7	-	-	123,538	102,196
Taxes recoverable	8	1,722	1,816	27,919	30,141
Financial transactions	16	-	-	40,380	39,008
Other credits	9	172		214		9,551		6,909
TOTAL CURRENT ASSETS		1,896	2,030	375,554	364,439
NON-CURRENT
Trade accounts receivable	6	-	-	5,323	4,766
Restricted financial investments		-	-	1,854	1,754
Financial transactions	16	-	-	49,096	52,891
Judicial deposit	21.2	401	473	1,123	1,151
Other credits	9	-		-		204		23
		401	473	57,600	60,585
Investments	11.1	164,545	176,731	-	-
Property, Plant & Equipment, net	12	-	-	39,351	40,422
Intangible assets	13	24		24		53,242		51,060
		164,569	176,755	92,593	91,482
TOTAL NON-CURRENT ASSETS		164,970	177,228	150,193	152,067
TOTAL ASSETS		166,866	179,258	525,747	516,506

The accompanying notes are an integral part of the individual and consolidated financial statements.

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Padtec Holding S.A.

Balance sheets

As of march 31, 2024 and december 31, 2023

(Amounts In thousands of Brazilian reais - R$, unless otherwise indicated)

		Parent Company		Consolidated
	NOTE	03/31/24	12/31/23	03/31/24	12/31/23
LIABILITIES
CURRENT
Loans and financing	14	-	-	19,304	13,374
Derivative financial instruments	33.1	-	-	776	1,671
Lease transactions	15	-	-	5,189	5,882
Suppliers	18	82	47	67,215	57,395
Related parties	10	-	-	412	400
Taxes and contributions payable	19	47	47	3,285	4,643
Taxes and contributions payable - installment payment	20	173	432	796	1,055
Labor charges	22	210	384	27,710	27,274
Dividends payable	24.4	3,674	3,674	3,674	3,674
Miscellaneous provisions	21.1	99	100	2,066	2,411
Financial transactions	16	-	-	40,380	39,008
Advances from customers		-	-	1,334	1,447
Other accounts payable		-		-		1,229		1,208
TOTAL CURRENT LIABILITIES		4,285	4,684	173,370	159,442
NON-CURRENT
Miscellaneous provisions	21.1	479	507	479	507
Provision for labor, tax and civil risks	21.2	7,217	6,872	16,521	16,058
Loans and financing	14	-	-	112,351	99,081
Suppliers	18	-	-	508	508
Lease transactions	15	-	-	11,678	13,071
Taxes and contributions payable - installment payment	20	-	-	1,143	1,299
Related parties	10	15,781	14,597	-	-
Financial transactions	16	-	-	49,096	52,891
Transactions with senior FIDC quotas	17	-		-		21,586		21,109
TOTAL NON-CURRENT LIABILITIES		23,477		21,976		213,362		204,524
TOTAL LIABILITIES		27,762	26,660	386,732	363,966
NET EQUITY	24
Capital		138,439	138,439	138,439	138,439
Capital reserve		3,193	3,193	3,193	3,193
Investment reserve		11,023	11,023	10,965	10,965
Accumulated loss		(14,511)	-	(14,542)	-
Goodwill on capital transaction		599	599	599	599
Other comprehensive income		361		(656)		361		(656)
TOTAL EQUITY ASSIGNED		139,104		152,598		139,015		152,540
TOTAL LIABILITIES AND EQUITY		166,866	179,258	525,747	516,506

The accompanying notes are an integral part of the individual and consolidated financial statements.

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Padtec Holding S.A.

Statements of profit or loss for

Periods ended march 31, 2024 and 2023

(Amounts In thousands of Brazilian reais - R$, unless otherwise indicated)

		Parent Company		Consolidated
	Note	03/31/24		03/31/23	03/31/24		03/31/23
Net operating revenue
Cost of goods sold and services provided	26	-		-		58,381		79,164
Gross profit	27	-		-	(43,509)		(50,675)
		-		-	14,872		28,489
Operating revenues (expenses)
Administrative expenses
Selling expenses	28.1	(462)		(918)	(6,452)		(7,373)
Research and development expenses	28.1	-		-	(8,424)		(9,007)
Equity income	28.1	-		-	(8,466)		(9,724)
Other operating revenues (expenses), net	11.4	(13,203)		2,163	-		-
Loss (income) before financial result	28.2	(703)		(449)	(3,028)		(816)
		(14,368)		796	(11,498)		1,569
Net financial result
	29	(143)		(119)	(3,030)		(892)
Income (loss) before income tax and social contribution
		(14,511)		677	(14,528)		677
Income tax and social contribution
Current
Net income (loss) for the period	30	-		-		(14)		-
		(14,511)		677	(14,542)		677
Income (loss) attributable to:
Controlling shareholders
Net income (loss) for the period		(14,511)		677		(14,542)		677
		(14,511)		677	(14,542)		677
Earnings (losses) per share
Basic and diluted earnings (losses) per share
Diluted earnings (losses) per share	25	(0.1832)		0.0086	(0.1836)		0.0086
	25	(0.1826)		0.0086	(0.1830)		0.0086

The accompanying notes are an integral part of the individual and consolidated financial statements.

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Padtec Holding S.A.

Statement of comprehensive income

For the periods ended march 31, 2024 and 2023

(Amounts In thousands of Brazilian reais - R$, unless otherwise indicated)

Income (loss) for the period

Items that may be reclassified subsequently to the statement of income (loss)

Other comprehensive income

Translation adjustments of balance sheet of subsidiaries abroad

Cash flow hedge

Comprehensive income for the period

Parent Company		Consolidated
03/31/24		03/31/23		03/31/24		03/31/23
(14,511)	677	(14,542)	677

1,906	231	1,906	231
(889)		-		(889)		-
(13,494)		908		(13,525)		908

Comprehensive income attributable to:
Controlling shareholders	(13,494)		908		(13,525)		908
Comprehensive income for the period	(13,494)	908	(13,525)	908

The accompanying notes are an integral part of the individual and consolidated financial statements.

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Padtec Holding S.A.

Statements of changes in equity

For the periods ended march 31, 2024 and 2023

(Amounts In thousands of Brazilian reais - R$, unless otherwise indicated)

Parent Company and Consolidated

BALANCE AS OF DECEMBER 31, 2022 Net income for the period

Exchange variation adjustment of subsidiaries

BALANCE AS OF MARCH 31, 2023

BALANCE AS OF DECEMBER 31, 2023 Net loss for the period

Exchange variation adjustment of subsidiaries

Cash flow hedge

BALANCE AS OF MARCH 31, 2024

							Goodwill		Other				Retained
			Legal		Options				Investment		earnings /		Total net
Note	Capital				on capital		comprehensive
	reserve		granted				reserve		accumulated		equity
					transaction		income
											losses
	199,211		-		-		599		(3,351)		-		(60,780)		135,679
	-	-	-	-	-	-	677	677
24.3	-	-	-	-	231	-	-	231
	199,211	-	-	599	(3,120)	-	(60,103)	136,587
	138,439		774		2,419		599		(656)		10,965		-		152,540
	-	-	-	-	-	-	(14,542)	(14,542)
24.3	-	-	-	-	1,906	-	-	1,906
24.3	-		-		-		-		(889)		-		-		(889)
	138,439	774	2,419	599	361	10,965	(14,542)	139,015

The accompanying notes are an integral part of the individual and consolidated financial statements.

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Padtec Holding S.A.

Statements of cash flows

For the periods ended march 31, 2024 and 2023

(Amounts In thousands of Brazilian reais - R$, unless otherwise indicated)

	Parent Company		Consolidated
	03/31/24	03/31/23	03/31/24	03/31/23
Cash flow from operating activities
Income (loss) for the period before taxes	(14,511)	677	(14,528)	677
Adjustments to reconcile net income (loss) for the period with cash
from (used in) operating activities:
Depreciation and amortization	-	-	5,279	6,134
Interest and inflation adjustments on loans	-	-	4,945	1,683
Interest and inflation adjustments on debentures	-	-	-	885
Amortization of costs with issuance of debentures	-	-	-	62
Allowance for doubtful accounts	-	-	1,108	(1,177)
Set up (reversal) of miscellaneous provisions	(29)	(26)	(373)	(185)
Provision for labor, tax and civil risks	796	647	1,006	85
Provision for inventory obsolescence	-	-	731	220
Equity income	13,203	(2,163)	-	-
Write-off of PPE and intangible assets	-	-	1,671	72
Decrease (increase) in operating assets:
Trade accounts receivable	-	-	(15,973)	26,070
Tradable securities	-	-	5,808	855
Inventories	-	-	(22,073)	(15,330)
Taxes recoverable	94	23	2,222	7,592
Judicial deposit	72	18	28	7
Other credits	42	63	(2,823)	1,435
Increase (decrease) in operating liabilities:
Derivative financial instruments	-	-	(895)	-
Lease transactions	-	-	(2,189)	(1,408)
Suppliers	35	(16)	9,820	564
Labor charges	(174)	27	436	2,703
Taxes and contributions payable	(259)	(35)	(1,773)	(10,869)
Related parties	1,184	1,207	12	25
Transactions with senior FIDC quotas	-	-	477	250
Income tax and social contribution - paid	-	-	(14)	-
Charges on loans and financing - paid	-	-	(3,853)	(1,242)
Debenture charges - paid	-	-	-	(885)
Advances from customers	-	-	(113)	1,363
Other accounts payable	-	-	21	330
Labor, tax and civil indemnities -	(451)	(481)	(543)	(763)
Net cash from (used in) operating activities	2	(59)	(31,586)	19,153
Cash flows from investment activities
Restricted financial investments	-	-	(100)	(32)
Purchase of PP&E and intangible assets	-	-	(7,958)	(6,369)
Net cash used in investing activities	-	-	(8,058)	(6,401)
Cash flows from financing activities
Cash flow hedge	-	-	(889)	-
Raising of loans and financing	-	-	50,599	1,134
Payment of loans and financing - principal	-	-	(32,491)	(16,783)
Payment of debentures - principal	-	-	-	(2,667)
Net cash from (used in) financing activities	-		-		17,219		(18,316)
Exchange variation of cash in foreign currency	-	-	1,906	231
Increase (decrease) in cash and cash equivalents	2		(59)		(20,519)		(5,333)
Cash and cash equivalents at the beginning of the period	-		60		50,456		49,620
Cash and cash equivalents at the end of the period	2	1	29,937	44,287
Non-cash transactions
Right-of-use of lease	-	-	103	-

The accompanying notes are an integral part of the individual and consolidated financial statements.

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