Notice to Market - 2Q24 Results Presentation

I M P O R T A N T

INFORMATION

The meeting is being recorded.

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Any statements that may be made during this videoconference, relating to the business prospects, projections and operating/financial goals of the Company, express beliefs and assumptions of Fras-le's Management, as well as information currently available to the Company. Forward-looking statements are not guarantees of performance and involve risks, uncertainties and assumptions, as they refer to future events and, therefore, depend on circumstances that may or may not occur.

Investors should understand that general economic conditions, industry conditions and other operating factors may affect the Company's future results, and may lead to results that differ materially from those expressed in such forward-looking statements.

PUBLIC CALAMITY RS

We kept supporting employees affected by the floods, providing emergency support with food, drinking water, hygiene items, clothing, mattresses, medicines, as well as social services, psychological care, telemedicine and legal advice, in addition to financial support.

ACQUISITION KUO REFACCIONES

On June 24, the Company announced the acquisition of Kuo Refacciones, the automotive aftermarket division of the Mexican Kuo group. The acquisition involves an investment of approximately R$ 2.1 billion (subject to adjustments on the closing date).

EXPERTS CLUB

The Auto Experts platform's loyalty program has been launched. The Experts Club includes partner automotive centers with special benefits and advantages when purchasing Fras-le and Nakata brand products. The program serves 11 Brazilian states in the South, Southeast and Central- West regions.

Building tomorrow

with sustainability

Online transmission on Youtube channel @randoncorp

F A N A C I F

CLOSING DOWN OF MANUFACTURING ACTIVITY

RESTRUCTURING STRATEGY

• Footprint optimization;
• Better absorption of fixed costs;
• Consolidated capacity was idle, assets were technologically outdated, and labor was high.

SCHEDULE

04/16 Announcement of closure of activities

08/31 Forecast for definitive closure

DECOMMISSIONING PROCESS

• Production of brake pads was relocated to:
  Caxias do Sul (RS)
  Sorocaba (SP)
  Sourcing
• Sourcing from China and India;
• Sales team will be maintained;
• Assets and goods are being transferred to Brazil;
• Building is in the process of being sold.

K U O R E F A C C I O N E S

OUR RECENT ACQUISITION IN MEXICO

Celaya: Piston and gasket plant

Mexico City: Friction Material Plant and Warehouse

2 plants

INVESTMENT

• Equivalent to and approximately R$ 2.1 B, it increases the Company's revenue by approximately R$ 1.4 B/year.

FUNDING

• Credit reserve of up to R$ 750 MM in Brazil;
• Credit reserve of the equivalent of R$ 1 B in MX pesos;
• Complemented with cash resources (part of the follow-on carried out in 2022).

NEXT STEPS

June 24, 24 - Board approval and signing of

the Sale Agreement

Approval and analysis by economic defense

agencies and bodies (4 to 6 months)

Other miscellaneous conditions precedent;

"Closing" (with payment of 100%) only upon satisfaction of the preceding conditions;

Integration plan.

A R G E N T I N A

MACROECONOMIC SCENARIO

• Change in payment terms for imports, from August on: 30 and 60 days;
• Major recessionary process, although the main adjustments have already been made by the government;
• 24.5% drop in the auto parts sector, as a result of stock reduction by customers;
• Strong inventory adjustments;
• Over 50% of the population is below the poverty line;
• Purchasing profile for cheaper brands.

INFLATION

EFFECTS OF INFLATION AND CURRENCY DEVALUATION IN ARGENTINA

* Adjustment for inflation update in a highly inflationary economy as provided for in CPC 42/IAS 29.