2022 ANNUAL REPORT

“ We continue to invest in building the

future through digital connections,
aiming to improve the experience of
both internal and external users. The
diversification of the Group's segments
gives us optimism in the face of another “
challenging year ahead.
Index
01 Message from the CEO

02 History

03 General Overview

04 Steel

05 Exports

06 Imports

07 FIDC

08 International Factoring

09 Exilog

10 ESG

11 Innovation

12 Financial Statements
 01 Message from the CEO
Dear customers and partners,
The year 2022 was extremely complex for the
global economy. Firstly, due to a worldwide
inflationary process that had not been seen
for a long time. The Central Banks from all
countries had to raise interest rates at
different times and intensities, aiming to
control inflation and return to a possible
normality. In addition, new geopolitical
movements affected supply chains and trade
due to the War between Russia and Ukraine,
generating concerns derived from this
conflict. Finally, in Brazil, the nation has been
divided in fierce elections, making the
country's political-economic scenario
turbulent.
We understand that the situation is still
challenging and will likely persist throughout
2023. Despite these challenges, the Brazilian
Central Bank started raising interest rates
ahead of all other countries in the world, and
it is already possible to observe the
containment of inflation and a return to
normalcy. With the end of the pandemic in
Brazil, it is evident that we are living
differently in our daily lives, with changes in
the way we consume, work, do business, and
communicate, driven by the new possibilities
that the digital world presents.
In 2022, the year we celebrated our 33rd
anniversary, we heavily invested in innovation.
Our team has been doing an excellent job,
renewing our image, expanding the
digitalization of processes, and reinforcing
our purpose of providing customized
solutions for foreign trade
We continue to invest in building the future
through digital connections, aiming to
enhance the experience for both internal and
external users. We understand that our
company needs to respond quickly to
unexpected events, whether positive or
negative, which test our competitiveness and
promote significant growth.
Regarding the business areas, we achieved
excellent results despite the challenging year.
We experienced growth in all business units
except for the steel segment. We had
anticipated a decrease in this business unit,
as we recognized that the result achieved in
2021 was a positive outlier, where we took
advantage of an excellent opportunity in the
segment.
We were able to achieve a slight increase in
exports, but we grew by 23% in the
importation service. Additionally, we achieved
growth of 23% in FIDC, 28% in Exilog, and an
impressive 126% in International Factoring.
The diversification of the Group's segments
fills us with optimism as we face another
challenging year ahead.
Alexandre Souza
CEO
Annual Report 2022 – Grupo Exicon 04
 02 History
Founded in 1989 with the mission of
increasing the accessibility of SMEs to
international markets, South Service Trading
combined founder's expertise in foreign trade
to their knowledge of the financial markets.
Following the expansion of its solutions and
taking advantage its expertise in international
operations, the company began importing
steel in 2008, with distribution by the
subsidiary company Codime.

Focusing on the leather and footwear sector
in the Vale dos Sinos region, South Service
has consolidated itself as one main player
specialized in foreign trade in the southern
region, representing more than 10% of
footwear exports from Rio Grande do Sul in
the 1990s.
In the early 2000s, the company expanded its
working capital and foreign trade solution for
imports, starting its operations in Santa
Catarina.
In 2007, customized supply chain finance
solutions led to the creation of the first
receivables fund (FIDC) in Rio Grande do Sul,
enabling even broader financing methods
through receivables and inventory in motion
as collateral.
The quality of the imported steel, combined
with certifications and operational efficiency,
led Exicon as one of the main players in the
imported steel market in Brazil.
The portfolio of services was finally
complemented with the creation of Exilog in
2013, a logistics warehouse located in
Itajaí/SC, and with subsidiaries created in
Asia and the United States, providing fully
customized solutions. The wide range of
solutions led to the consolidation of different
business units under the brand Grupo Exicon.
Throughout its history, Grupo Exicon has
served thousands of companies, widely
recognized by its clients for excellence in
providing foreign trade services.

1989 2005 2007 2008 2014

Founding of First operations Opening of 1st First import of Consolidation

South Service in Santa Receivables rebar steel as Grupo Exicon
Trading Catarina fund (FIDC) in
RS State

Annual Report 2022 – Grupo Exicon 05

 03 General Overview
We are foreign trade platform for SMEs, increasing their accessibility to
international markets through working capital and supply chain solutions.

Exports Imports
Exports solution combined with working Import services, from the purchase order to
capital, through the anticipation of the product delivery at the customers'
exported value with the guarantee of the warehouse. In addition to operational
physical merchandise. We assess the risk support, we design customized solutions,
of the exporter and the importer, setting aiming to optimize logistic and tax costs
operation limits, and then managing the and to facilitate the complete import
entire export process from end to end. management process.

Steel South Asian and Exicon USA

Commercialization of imported steel by We facilitate transactions between
order on behalf of third parties, as well as suppliers in the Asian and American
imported steel for distribuition across markets with buyers located in Latin
Brazil. Suppliers diversified from China, America. The product portfolio includes
Turkey, Egypt, Algeria and Spain. With footwear, furniture, wood, and electronics.
INMETRO certification, we import hot and
cold rolled steel, rebar, wire rod, wire strand
and strand, among others. Exilog
We have warehouse in Itajaí with 6,000m².
FIDC
We provide storage, picking, packing, and
Fund specialized in credit rights,
transportation services for goods, all
broadening the Group's financing methods.
customized for each client and operation.
In 2021, the Fund received BRL 11 million
Our goal is to optimize costs and maximize
in investments, reaching BRL 67 million
results for our client.
under management.

Annual Report 2022 – Grupo Exicon 06

 04 Steel
The year 2022 was more challenging for the In 2022, we served 284 customers across
steel industry as a whole compared to the six different segments, achieving an overall
demand peaks during the pandemic period. satisfaction rate of 89% for our services. As
Despite this, the Exicon maintained a good a result, Exicon achieved impressive
volume of imports, mainly due to the numbers for the year, with a total of 57.5
diversification of its product portfolio. thousand tons of steel traded, reaching
The business volume in rebar and wire rod almost every state in Brazil.
compensated for the reduction in hot/cold
rolled steel volume, due to an increased
number of customers and the loyalty of
existing clients.
Although the overall revenue was 50% lower
than in 2020, it was still 2.2 times higher than
in 2020 and 1.9 times higher than pre-
pandemic levels.
Annual Revenue
in BRL millions

A private ship docked at the Port of São

Francisco with Codime rebar steel.

There were over 5 private ships, 16 break-

bulk operations, 190 containers, and more
than 2,000 trucks involved in the logistics
process. The imports were carried out
through the Ports of Itajaí, Navegantes, and
São Francisco, with a 99% Green Channel
During the year, the company initiated new clearance rate.
certification processes for steel mills, aiming
to expand its global supply network.
Several Exicon costumers consistently
emphasize the importance of supply
diversification with imported steel. The
imported steel provides greater
competitiveness to the sector, enabling cost
reduction, reduced dependency on major
industries and improved supply predictability.
Steel rebar coils and bars in the hold
of a break-bulk ship.

Annual Report 2022 – Grupo Exicon 07

 04 Steel
In 2022, there were more than

57.500 89%
Tons of steel sold NPS - Net Promoter Score

We served 284 costumers all over Brazil

1,5%

10%

34% 15%
Rebar
Hot/Cold Rolled
Wire Rod
Wire and Strand
Others

41%

Logistics

5x 16x 190 2.017

Private Ships Break Bulk Containers Trucks

Annual Report 2022 – Grupo Exicon 08

05 Exports
Despite the initial signs of global economic recession, exports experienced a slight
increase in 2022 compared to 2021. In comparison to the levels in 2019 and 2020, the
volume of operations grew by 26% and 36%, respectively.

The decline in market demand for pine plywood was compensated by the increased
demand for Brazilian footwear, with a trend of major brands adopting nearshoring
practices to reduce their dependence on the Asian market.

Annual Revenue Segments

In USD millions Plywood and
Lumber
75.000.000
6% Furniture
9%

50.000.000

62% 23% Footwear

25.000.000

0
Faturamento
2020 2021 2022

Throughout 2022, we served over 200 factories, with exports to 48 countries around the
world. North America accounted for 69% of the exports, followed by Europe with 17%, and
Asia with 10% of the global total.

67,654 Mi

Annual Report 2022 – Grupo Exicon 09

 06 Importation
The Group also managed to increase the level One of the main indicators of operational
of its imports services in 2022, growing by efficiency monitored by the Group was the
23% compared to the previous year and 101% green channel index for all processes.
compared to 2020. Last year, we maintained the level of 98.8%
green channel, which demonstrates the
Annual Revenue credibility achieved with the Receita Federal
In BRL millions do Brasil.
%
+23 208 Channel Indicator
169
169 1,3%

104
Other Channels
Green Channel

2020
2020 2021
2021 2022
2022 98,8%
The main drivers of growth the tire segments -
subdivided into PCR and TBR - as well as
machinery, loundspeakers, and packaging.
Due to the Group's scalable solutions, the In addition, there is an increase in the
already served niches were able to achieve percentage of customer loyalty, which is the
their growth in 2022. most relevant indicator in measuring their
satisfaction. The Exicon always strives to
Additionally, new business initiatives resulted have the best logistics partners, including
in a 20% increase in the recurring customer international freight, customs clearance,
base, with the prospect of even faster growth domestic transportation, warehousing, and
for 2023. port operations.
The high volume of operations, combined
Segments Served
with loyalty to our partners, enables the Group
Others 3,45% to consistently secure more competitive rates
Spare Parts 0,57% than the market average in domestic
Furniture 0,71% logistics. Allied to investments in technology
Consumables Inputs 1,24%
for more efficient management,
Loudspeakers 4,32%
communication and traceability, the Group
Machinery 5,79%
has been strengthening its competitive
Packaging 8,05%
advantages in the segment.
Graphic material 12,11%
Tires 63,77%
0 0,25 0,5 0,75

Annual Report 2022 – Grupo Exicon 10

 07 FIDC
The FIDC Multisetorial Exicon I, started its operations in 2007, inaugurating the first
receivables fund in the south of Brazil, specializing in investing its funds in credit rights
consisting of invoices for products and services sold, providing working capital to its
costumer.

Since its creation, the FIDC Multisetorial Exicon I has achieved an average annual growth
of 20% in its net equity, reaching a milestone of BRL 84 million by the end of 2022.

Evolution of Net Equity Quota Distribution

In BRL millions
000.000
84
000.000
47 Senior Quota
000.000
31
23 Subordinated Quota
000.000 12
4
0
2007 2010 2013 2016 2019 2022
07

10

13

16

19

22
20

20

20

20

20

20

With a distribution of shares, with 36% for Senior Shares and 64% for Subordinated
Shares, in the last year, the FIDC Multisetorial Exicon I resumed external fundraising,
celebrating new contributions in the amount of BRL 11 millions.

With an experienced and qualified management team that is committed to delivering

results, the FIDC Multisetorial Exicon I has achieved a historic default rate of 0.18% of
revenue and an average yield of 21.56% per year. These results once again demonstrate
the credit excellence of the Grupo Exicon.

Annual Report 2022 – Grupo Exicon 11

 08 International Factoring
The Grupo Exicon is one of the few Brazilian members of the Factors Chain International
(FCI), a global network of financial institutions. Through its partner network, Exicon can
provide guarantee against non-payment from foreign debtors, known as Export Factor, as
well as protection against default for companies exporting to Brazil, known as Import
Factor.

Volume of Operations Service Coverage

In USD millions

200.000.000
x 163
150.000.000 2.3
400 90
100.000.000 members countries
57 72
50.000.000

0
Faturamento
2020 2021 2022

In 2022, the International Factoring area achieved its highest volume of operations
performed in a single year. The results in export operations were brilliant, resulting in a
2.3 times increase in the volume of operations compared to the year 2021.

Best Factor in America’s

At the annual Factors Chain International

(FCI) meeting in Washington D.C., Exicon
won the award for the Best Import and
Export in the Americas region. Due to the
high volume of transactions and the
quality of service provided, we were
recognized as the top player in the
region, surpassing major financial
institutions such as Bank of America and
Wells Fargo.
Alexandre Bücker and Robert Kienzle
Receiving the award in Washington D.C.

Annual Report 2022 – Grupo Exicon 12

 09 Exilog
The Exilog, the logistics subsidiary of Exicon in Itajaí, recorded a 28% growth in its
revenue in 2022. Its performance is aligned with the expansion of the Group's export and
import operations. In exports, with the constant bookings delaying shipments, Exilog has
become a strategic point in Itajaí for storing cargos closer the shipping dates.

Regarding imports, Exilog operates as a central distribution point for its costumers,
offering services such as picking, packing, order sorting, and efficient distribution to
different locations. In 2022, Exilog handled over 390,000 volumes, completing 12,400
operations for 66 different customers.

Volume of Operations
In BRL millions

10.000.000
8.021
7.500.000
6.268
5.000.000
3.684
2.500.000

0
Faturamento
2020 2021 2022

Inauguration of the Third Warehouse

Starting from 2020, Exilog began
operating more independently from the
Group, expanding the range of its
services to external clients.
With the growth achieved in recent years,
Exilog inaugurated its newest warehouse
in November 2022, covering an area of
1,800 m², thereby expanding its storage
capacity from 6,000 m² to 8,800 m². This
investment is a result of the space Exilog
has carved out in the market, offering Warehouse 3 recently
opened, with 1,800 m².
differentiated structure and services in
the region.

Annual Report 2022 – Grupo Exicon 13

 10 ESG
1 Environmental
Since 2015, Exicon has been certified by the
Forest Stewardship Council® (FSC), a socio-
environmental certification recognized for
standardization of the entire wood custody
chain, ensuring the traceability of raw
materials from processing to the final product.
In 2022, over 7,000 m³ of certified wood were DELIVERY OF COLLECTED ITEMS: CAMPAIGN OF THE SWEATSHIRT

processed through the Grupo Exicon chain of

custody, guaranteeing the export of Brazilian
products with the best forest management
practices. This certification demonstrates the
company's commitment to sustainability and
responsible sourcing of wood materials.

2 Social

One of the highlighted actions was

sponsoring the "Festival de Teatro Nova
Cena" project in Itajaí, Santa Catarina, through
the Municipal Law of Cultural Incentive. This
initiative allowed resources to be directed
towards promoting culture, art, and education
in the region. DELIVERY OF COLLECTED ITEMS: CAMPAIGN OF THE SWEATSHIRT

Throughout the year, we also engaged in

various social responsibility initiatives. We
involved our employees in traditional winter
clothing drives and organized solidarity
donations of snacks in the peripheral
neighborhoods of Porto Alegre. Additionally,
we arranged donations of sweets and toys on
Children's Day to contribute to a party
organized by the "Sociedade Espírita Casa do
SOCIAL ACTION: CHILDREN'S DAY
Evangelho," which assists residents of Ilha
dos Marinheiros, benefiting over 100 children.
These efforts demonstrate our commitment
to making a positive impact in the
communities we serve.

Annual Report 2022 – Grupo Exicon 14

10 ESG
In regards to education incentives, we
dedicated over BRL 73 thousand in
educational support and courses for our
employees.
Finally, we are committed to promoting the
professional development of young
individuals through our young apprenticeship
program. We were immensely proud to see
one of our apprentices stand out regionally at
SENAC, showcasing her potential and ability
to overcome challenges.
Investments in education and responsibility
campaigns are key factors that determine the
positive work environment at the Grupo
Exicon and contribute to the high average
tenure of employees.

3 Governance

In 2022, we conducted a total of 10 audits

within the group, including two ABNT audits
and four with Falcão Bauer, related to quality
systems, one related to FSC, one
environmental audit by PwC, and two
financial audits. These audits are essential to
ensure compliance of our operational and
financial practices with the highest standards
and regulations. We also launched the Code
of Ethics and Conduct - 2022 of the Grupo
Exicon, as well as a new system for
Complaints, Criticisms, and Suggestions to
the companies within the Group, which is
entirely anonymous and provides monthly
feedback responses.

Annual Report 2022 – Grupo Exicon 15

 11 Innovation
The year 2022 was marked by advances in
centralizing the operational systems of the
Grupo Exicon, consolidating the vision of a
unified Foreign Trade platform to serve a
variety of businesses within the group. The
platform is being built with technological
updates that involve the use of low-code
development and UX design technologies,
aiming to enhance the user experience and
migrating the database to newer versions to
ensure enhanced security and agility.
The ultimate goal of the platform is to provide
customers with a unified view of all their
operations, offering proactive notifications
that assist in process management.
In the early stages, the platform will expand
the Group's origination capacity and connect
its two expertise areas: foreign trade and
credit. This initiative aligns with the growing
momentum of digital transformation within
the Grupo Exicon, expanding its value
proposition in the digital domain.
In terms of security, we strengthened our
cybersecurity by adopting a state-of-the-art
immutable backup solution, along with an
Endpoint Detection and Response (EDR)
solution to prevent ransomware threats that
have been growing annually. These measures
are aimed at safeguarding our systems and
data from potential cyberattacks and
ensuring the integrity and availability of our
critical information.
In parallel, the Group is in the testing phase of
new financial products for foreign trade,
aiming to provide credit with an improved
experience for customers and utilizing
alternative guarantees, such as Bill of Lading
(BL) and Warrants.
To foster new business opportunities, the
Group is investing in new digital marketing
strategies to attract and acquire new clients.
This includes an ongoing investment in
Google Ads and Facebook Ads, as well as
hiring new employees to establish the Inside
Sales department of the company.
Looking ahead to 2023, the Group plans to
focus more on content marketing, SEO, and
social media efforts to become a digital
reference in the industry. The goal is to
enhance the Group's online presence and
establish itself as a leading authority in the
sector.
Annual Report 2022 – Grupo Exicon 16
 12 Financial Statements
Fiscal Year Income Statement
Fiscal periods ending December 31, 2021 and December 31, 2022

Income Statement (USD thousand) 2022 2021 ∆

Gross Income from Sales and Services 192.662 250.547 -23%

Taxas on Sales and Services (21.743) (32.855) -34%

Net Operational Income 170.919 217.691 -21%

Cost of Sales and Services (156.359) (195.603) -20%

Gross Profit 14.560 22.088 -34%

Gross Margin (%) 7,56% 8,82% - 1,26 p.p.

Operating Expenses (4.654) (9.757) -52%

Salary Expenses (1.289) (1.195) 8%

Administrative Expenses (2.265) (1.045) 116%

Operating Expenses (8.444) (14.072) -40%

Tax Expenses (1.137) (1.043) 9%

Equity Result 611 (532) 114%

Other Income 7.872 8.132 -3%

Net Operating Profit 9.906 12.331 -19%

(%) 5,14% 4,92% + 0,22 p.p.

Financial Result (4.919) (5.891) -16%

Financial Expenses (11.378) (8.443) 35%

Financial Income 6.458 2.551 153%

Net Income before Taxes 4.986 6.440 -22%

Social Contribuition - (2) -

Imposto de Renda - (4) -

Net Income 4.986 6.443 -23%

Net Margin (%) 2,59% 2,57% +0,02 p.p.

Annual Report 2022 – Grupo Exicon 17

12 Financial Statements
Balance Sheet
Fiscal periods ending December 31, 2021 and December 31, 2022

ASSETS (In USD thousands) 2022 2021 ∆

Current Assets 101.682 108.691 -6,45%
Cash and Cash Equivalents 7.993 7.610 5,03%
Clients 70.658 79.024 -10,59%
Tax Credits 2.815 916 207,31%
Inventories / Goods to Ship 12.854 16.867 -23,79%
Other advances 282 516 -45,33%
Advances to Suppliers 2.475 2.368 4,52%
Other Credits 4.605 1.390 231,29%
Non-current Assets 14.604 9.517 53,47%
Related Party Loans 0 637 -100,00%
Escrow Deposits 542 437 24,03%
Other Credits 4.306 579 643,52%
Investments 9.279 7.786 19,16%
Fixed Assets 469 73 551,39%
Intangible Assets 8 5 100,00%
Total Assets 116.286 118.208 -1,63%

LIABILITIES (In USD thousands) 2022 2021 ∆

Current Liabilities 79.317 93.762 -15,41%
Suppliers 15.419 26.382 -41,55%
Advences from Customers 21.043 24.368 -13,64%
Loans and Financing 39.733 37.207 6,79%
Commissions and Freights Payable 918 1.330 -30,98%
Social Obligations Payable 122 104 18,45%
Tax Liabilities Payable 335 197 69,54%
Other Obligations 1.747 4.174 -58,17%
Non-current Liabilities 16.085 12.883 24,85%
Related Party Loans 3.754 1.829 105,19%
Loans and Financing 10.610 8.891 19,35%
Contingency Provisions 449 412 8,74%
Other Debits 1.272 1.751 -27,31%
Equity 20.884 11.563 80,61%
Share Capital 7.734 3.647 112,10%
Legal Reserve 1.009 714 7,01%
Retained Earnings 12.141 7.202 71,99%
Total Liabilities and Equity 116.286 118.208 -1,63%

Annual Report 2022 – Grupo Exicon 18

 grupoexicon.com.br

/grupoexicon

@grupoexicon

/grupoexicon

Porto Alegre/RS: Av. Cristóvão Colombo, 1700

CEP 90560-001 | Fone + 55 51 3393.5200

Itajaí/SC: Rodovia BR 101, Km 116 Armazém nº 3136

CEP 88311-601 | Fone + 55 47 3348.1013