Results Presentation 1Q25

Results Presentation

1Q25

125

113

-31

27

• Scenario of lower operating output partially offset by initiatives related to financial and working capital efficiency;

• Working Capital in line with expectations for the first quarter

  of the year;

• Approaching the end of the 2021-2025 Investment Cycle, allocating:

  − R$25 million: ramp up of the new Tiles unit at Botucatu

  − R$18 million: improvement of the mix and factory modernization of the metals and sanitary ware operations

  − R$8 million: expansion of the forestry base in the North East

  − R$3 million: DX Ventures

  Worfiing Capital/Net Revenue

  442

  346

  1Q24 1Q25

  12%

  10%

  15% 12%1

  17% 15% 15%

  11%1

  16%

  1T25

  (3)

  (36)

  (160)(161)

  (56) (18)

  (117)(143) (160)

  2020 2021 2022 2023 1Q24 2Q24 3Q24 4Q24

  2T24

  4T24

  3T24

  Investment 1Q24 1Q25

  CAPEX R$ million / %

  1Q25

  (245)

  (340)

  (220)

  (303)

  (337)

  OPEX Florestal 116 120

  Sustaining CAPEX3 160 161

  Maintenance 44 42

  Recurring

  EBITDA

  Working

  Capital

  Financial flow

  Sustaining

  CAPEX

  Taxes

  Sustaining

  FCL

  Projects2 FCL Total

  Expansion Projects 135 160

  1 - Discounting one-off items | 2 - 1Q24: Investment Cycle: R$102.9 million; other projects and LD Celulose R$ 117.5 million; 1Q25: Investment Cycle: R$

  54.0 million; other projects R$ 106.5million | 3 - Maintenance, factory modernization and sustaining the business. 4

  
  
  

  Corporate Debt

  1Q25

• Average Cost of debt influenced by unstable macroeconomic conditions during the period;

• Leverage reached 3.5x, reflecting the drop in cash from operations and consumption of Working Capital.

  Amortization Timeline

  R$ million

  Term

  21%

  Short

  Financial Leverage

  R$ million

  Net Debt Net Debt/Recurring EBITDA (UDM)

  Average Term¹

  4.1 years

  Average Cost

  106.8% of CDI

  79%

  Long

  3,11x 3,32x 3,46x 3,10x 3,01x 3,45x

  Revolving

  Credit Cash

  2,238

  1,488

750

R A T I O N

• Construction materials sector is showing signs of recovery, driven by housing programs, investment in infrastructure and growth of the formal market.

• Results for the materials sector suggest growth is expected in 2025, especially with respect to demand for finished products.

  Gross deflated revenue by product type versus vs 1Q241

  Construction sector revenue versus 1Q24¹

  Acabados Básicos

  8%

  4%

  10%

  8%

  5%

  4% 4% 5%

  7%

  6% 6%

  4%

  jan/25 feb/25 mar/25 1Q25 jan/25 feb/25 mar/25 1Q25

  
  
  

  1 - Average for the period 11

  
  
  

  Results Metals & San Ware

• Improvement in results versus 1Q24, with a positive EBITDA of R$8 million;

• Gains in market share in categories offering greater

  added value driving an increase in Net Revenue;

• Despite the seasonality of the period, ignoring the electric showers and faucets operation, volumes have increased year on year.

  Capacity Utilization 1Q25

  San Ware

  46%

  Metals

  73%

  Total

  65%

  %

  Volume

  '000 Pieces

  Pro Forma Recurring Net Revenue and Gross Margin

  Adjusted & Recurring EBITDA and Margin

  -8%

  3,710

3,933

416

• • Wet segment saw growth in 2025, in contrast to the sector as a whole, which shrank on the back of falling dry segment

    Sales volume of the wet line versus 1Q24 and sector inventory level during the period

    % | Dias

    Capacity utilization in the sector

    %

    volumes;

  • Uptick seen in January arising from specific Sell In action,

    Jan/25 Feb/25 Mar/25

    15%

    1Q25

    1Q25

    associated with significant

    reduction in pricing levels;

  • Drop in capacity utilization for the sector, reflecting the high inventory levels in the industry.

    4% 2%

    -1% -1%

    5%

    0%

    -2%

    67%

    Total Market Wet Process

    1 - Internal Dexco estimate

    13

    
    
    

    Results

    Tiles

• With a highly competitive environment and elevated inventory levels in the sector, sales and marketing campaigns led to gains in market share, albeit with significant cost pressures;

• Costs arising from ramping up the new Tiles factory at Botucatu (SP), and from the scheduled maintenance shutdowns in January, impacted the Adjusted & Recurring EBITDA, which closed out the quarter at R$ -12 million.

  Capacity Utilization1 1Q25

  %

  1Q25

  63%

  Volume

  000m2

  +2%

  Pro Forma Recurring Net Revenue and Gross Margin

  R$ million / %

  Adjusted & Recurring EBITDA and Margin

  R$ million / %

  3,986

  4,056

  -5%

  1,9% -6,2%

  19,5% 18,2%

  4

  1Q24 1Q25

  210 200

  1Q24 1Q25

  (12)

  1Q24 1Q25

  Net Revenue Pro-forma Gross Margin%

  Adjusted and Recurring EBITDA

  EBITDA Margin%

  
  
  

  1 - Does not include the capacity of RC02 (Criciúma - RS), whose operation was suspended indefinitely from 2023, but includes RC05 (Botucatu - Sao Paulo).

  14

  
  
  

  PROSPECTS

  15

  
  
  

  Prospects

  2025

  Macroeconomic Scenario

• Maintenance of high interest rates putting pressure on the construction sector, reflected in demand in the Finishes Division.

• High prices for standing wood set to continue, with no pricing adjustments anticipated in the short term.

  Dexco scenario

  • Actions aimed at optimizing the portfolio and better utilizing industrial assets, in

    response to the uptick in demand;

  • Wood Division showing strong prospective results, sustained by resilient demand from the furniture industry;

  • LD Celulose set to continue its solid performance, maintaining the results reported for the last few quarters;

  • Casa Dexco offers significant profit potential for the Finishes Division, with the strengthening of relationships with the specifiers in the retail sector;

  • New Tiles factory aims to contribute to the development of the premium portfolio, with a focus on products offering higher added value.