Earnings release
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earnings release 1Q25 1 Earnings Release 1Q25 May 8th 2025
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earnings release 1Q25 2 1Q25 EARNINGS RELEASE Intelbras generates consolidated net revenue of R$921,267 thousand and EBITDA of R$81,152 thousand in the quarter. São José (SC), May 07th, 2025 – Intelbras S.A. - Indústria de Telecomunicação Eletrônica Brasileira ("Intelbras" or "Company") announces its consolidated results for the quarter ended March 31, 2025. The figures presented here are compared with those for the quarters ended March 31, 2024 and December 31, 2024, unless otherwise indicated. The accounting balances presented here were extracted from the interim financial information prepared in accordance with Brazilian corporate law and the practices adopted in Brazil, already in accordance with international accounting standards (IFRS). 1Q25 Highlights Net Operating Revenue was R$921,267 thousand in the quarter, representing a variation of -11.3% compared to 1Q24. Our EBITDA was R$81,152 thousand, which represents a variation of -50.9% compared to the EBITDA of the previous quarter, representing an EBITDA margin of 8.8%, a reduction of -4.0 percentage points compared to 4Q24. The Company's consolidated ROIC (pre-tax) calculated in the last four quarters was 13.8%, representing a reduction of 4.3 p.p. compared to the fourth quarter of the previous year. Our Net Income in 1Q25 was R$61,594 thousand, which represents a variation of -60.0% compared to the net income recorded in the same period of the previous year and a net margin of 6.7%. Management Message The Company's last four years have been marked by important moments, which have impacted past results and formed the basis for future ones. We expanded the capacity of all factories, invested in new distribution centers in SC and PE states, made significant changes in the organizational structure with the creation of the Business Superintendencies and accurately executed the succession of the CEO and the Chairman of the Board of Directors. At the same time, in a large internal project, we renewed our management software structure, adopting the most modern in process management. More than a dozen systems have been replaced or implemented to improve the efficiency of our processes and internal controls. The last system to be replaced was ERP, which connects all other systems and is the basis of the entire operation. The replacement of the ERP was an extremely complex project, requiring efforts in all aspects of management, from the dedicated team to migration, through the preparation of customers and partners, to the allocation of adequate financial resources to minimize the impact on the chain. We invested more than three hundred million reais in inventories, allowing us to go through January and part of Febr uary as planned, billing from the first day of operation of the new system, on January 7 th of this year. Despite all the preparation, the migration process kept our industrial area unavailable or with limited production beyond what was expected, significantly impacting the first quarter of 2025. These impacts are detailed in this report, and the most relevant causes have already been resolved at this moment . Nowadays, both the billing and shipping area and the factories operate normally, although with additional
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earnings release 1Q25 3 effort from the entire team. We are currently replenishing customers who have experienced delivery delays. Some delays have generated real sales losses, while others have driven to the reduction of inventories in the channel, which will be replenished as soon as possible. Currently, there are still evolving processes that require further dedication and more resources to normalize the operation. While less relevant in terms of revenue impact, these processes lead to delays or inaccuracies in information to customers and are a priority to be resolved throughout the second quarter. We consider the implementation of the new ERP system complete d. Now, in the final phase of stabilization, we seek efficiency and improvement of processes, as predicted with the migration. We know the challenges of the second quarter and understand that we are in the phase of internal evolution of the use of the syste m. The critical moment was concentrated in the first quarter, and we will work diligently so that the impact on operations is limited to this period. Main financial indicators R$ thousands 1Q25 4Q24 ∆% 1Q24 ∆% Net operating revenue 921,267 1,287,676 -28.5% 1,039,031 -11.3% Gross profit 271,216 373,353 -27.4% 351,899 -22.9% Gross Margin 29.4% 29.0% +0.4p.p 33.9% -4.5p.p EBITDA 81,152 165,315 -50.9% 167,036 -51.4% EBITDA Margin 8.8% 12.8% -4.0p.p 16.1% -7.3p.p Profit for the period 61,594 127,539 -51.7% 153,939 -60.0% Net Profit Margin 6.7% 9.9% -3.2p.p 14.8% -8.1p.p ROIC (pre-tax) 13.8% 18.1% -4.3p.p 24.0% -10.2p.p Net operating revenue Net operating revenue in the first quarter of 2025 was strongly impacted by the migration of the Company's ERP system, executed in early 2025. The drop in revenue of 11.3% compared to the same period of the previous year was due to the lack of finished pro ducts, caused by the greater difficulty in the growth of industrial operations, which evolved slower than expected, and consequently turned some important products unavailable for the period's revenue, especially during the month of February. On the other hand, the market activity level is compatible with the period of the year, and the sell-out carried out in our distributors is proceeding as expected.
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earnings release 1Q25 4 Gross Profit The drop in gross profit is in line with the drop in revenue when analyzing the results quarter over quarter and reflects the reality of the consolidated gross margin in line with that observed in the last two quarters. The price lists already reflect the cost levels, after months of relevant exchange rate fluctuation. Although throughout the first quarter the Brazilian Real appreciated over the US Dollar, costs remained with few variations, and the results oscillate within the expected for the Company's operation. Operating Expenses The Company has been maintaining its expense control and seeking greater productivity in its fixed structure. The 6.8% reduction quarter over quarter is in line with this strategy and was boosted by the 20.9% reduction in administrative expenses in the same period. This reduction was due to the lower accounting of the provision for the payment of Profit Sharing with employees for the period. According to the Employees’ Collective Agreement in force, the results achieved in the first quarter do not qualify for its payment. Therefore, there was a reduction of about 95% in the amount provisioned in this first quarter, when compared to the same period of the previous year . R$ thousands 1Q25 4Q24 ∆% 1Q24 ∆% Selling expenses (137,067) (174,354) -21.4% (135,413) 1.2% General and administrative expenses (50,783) (64,190) -20.9% (63,424) -19.9% Other operating expenses, net (30,965) 3,729 -930.4% (8,047) 284.8% Operating income (expenses) (218,815) (234,815) -6.8% (206,884) 5.8% Regarding selling expenses, there is a drop of 21.4% compared to the fourth quarter of 2024. However, a relevant increase may be observed in Other operating revenues (expenses). Both variations occurred due to an adjustment of structures carried out in early 2025, where the expenses associated with the technical management of the various product categories were no longer considered commercia l expenses, but were now accounted for as Research and Development expenses , due to the focus on these activities from now on . This measure aims at a better alignment with the management of the business in each BU of operation and has no impact on the Company's operating results. In addition, we recognize the industrial idleness, which occurred in January, due to the suspention of industrial activities for the migration of ERP, as a one-off expense in this quarter. The amount of R$15,739 thousand was recognized in this period and represented 50.8% of other net operating revenues (expenses). Due to its non-recurring characteristic, it will not affect results again during the year. R$ thousands 1Q25 4Q24 ∆% 1Q24 ∆% Net operating revenue 921,267 1,287,676 -28.5% 1,039,031 -11.3% Cost of sales and services (650,051) (914,323) -28.9% (687,132) -5.4% Gross profit 271,216 373,353 -27.4% 351,899 -22.9% Gross margin 29.4% 29.0% +0.4p.p 33.9% -4.5p.p
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earnings release 1Q25 5 EBITDA In a quarter with a significant drop in revenue, as already commented in the chapter on net operating revenue, our operating results were strongly impacted by operating deleveraging. Our Ebitda in the quarter reached R$81,152 thousand, representing a margin of 8.8%. The table below shows the composition of this indicator: R$ thousands 1Q25 4Q24 ∆% 1Q24 ∆% Net operating revenue 921,267 1,287,676 -28.5% 1,039,031 -11.3% Gross profit 271,216 373,353 -27.4% 351,899 -22.9% (-) SG & A expenses (218,815) (234,815) -6.8% (206,884) 5.8% (+) Depreciation 17,015 15,484 9.9% 12,330 38.0% (+) Amortization 11,736 11,293 3.9% 9,691 21.1% EBITDA 81,152 165,315 -50.9% 167,036 -51.4% % EBITDA 8.8% 12.8% -4.0p.p 16.1% -7.3p.p It is important to highlight that the increase in expenses, caused by industrial idleness and the limitation in the availability of relevant products for billing, both caused by the migration of the Company's ERP System, are conjunctural issues. Both the customers’ purchasing orders throughout the months of the first quarter and the turnover of goods in our distribution channel are at adequate levels and in line with expectations for the year. The comparison of Ebitda with the same period of the previous year can be seen in the chart below : Financial Results As observed in the following table, there was a balance between revenues and financial expenses throughout the quarter, with a slightly positive balance. On the other hand, with the appreciation of the exchange rate throughout the period, the settlement of derivative contracts carried out over the previous quarter was the main responsible for the negative exchange rate variation and it is according to the prospects of our exchange rate protection policy.
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earnings release 1Q25 6 R$ thousands 1Q25 4Q24 ∆% 1Q24 ∆% Finance income 46,224 48,620 -4.9% 52,089 -11.3% Finance costs (44,128) (48,071) -8.2% (36,568) 20.7% Exchange gains (losses), net (5,051) (26,672) -81.1% (6,130) -17.6% Net Income As observed in the operating result, the operating deleveraging also had a material impact on net income in the first quarter of 2025. The amount of R$61,594 and the net margin of 6.7% are also conjunctural, impacted by the migration of the Company's ERP system. ROIC (pre-tax) In addition to the limited operating results due to ERP migration issues, the further capital allocated to inventories for the transition process keeps the return on invested capital at levels below the Company's recent history. The ROIC (pre-tax) indicator for the last four quarters reflects a drop in operating profit before financial results and an expansion of capital employed. On the other hand, this is a result significantly influenced by the current quarter. More details may be observed in the table below: R$ thousands 1Q25 4Q24 ∆% 1Q24 ∆% Operating profit before finance income (costs) LTM (a) 451,703 544,317 540,406 Income tax and social contribution LTM 26,192 13,577 16,829 NOPAT LTM (b) 477,895 557,894 -14.3% 557,235 -14.2% Net (cash)/debit 314,624 35<547 (423,247) Equity 2,965,006 2,966,536 2,678,668 Capital employed (c) 3,279,630 3,002,083 9.2% 2,255,421 45.4% ROIC Pre-tax (a)/(c) 13.8% 18.1% -4.3p.p 24.0% -10.2p.p NOTE: LTM refers to the sum of the last 12 months.
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earnings release 1Q25 7 Business Segments Evolution Our three Business Units (BUs) were impacted by the migration of the ERP system in a similar way. On the other hand, the most relevant drop observed in the Energy segment is due to the reduction in project revenues in the period, when compared to the previous year and will be commented on in the Energy Chapter. The total revenue per BU is described below: R$ thousands 1Q25 4Q24 ∆% Intelbras 921,267 1,039,031 -11.3% Security 526,105 563,358 -6.6% ICT 205,870 219,338 -6.1% Energy 189,292 256,335 -26.2% The Company had prepared inventories and aligned with its sales channels so that the transition process would take place with the lowest possible level of impact. January evolved as planned from the revenue perspective, but with a first delay in the resumption of production. In February, the evolution of the billing process continued as planned. However, the industrial ramp-up occurred only at the end of the period, which significantly interfered with the month's revenue. Finally, during March, the delivery of new locally produced inventories has already come close to plan, and the invoicing process has remained as planned for the operation. The following chart illustrates the Company’s monthly evolution, starting with the reference (Base 100) of October 2024, the highest level of revenue and production reported in the previous year: Regarding revenue and production throughout the fourth quarter of the previous year, there was a normal evolution, within the seasonal patterns of the period. The effect of the system migration will therefore be observed from January onwards. On January 7, 2025, the operation with the new system began. It is observed that the revenue in the first month was composed of about two thirds billed in the previous system, and one third already from the new system, a proportion in accordance with what had been planned for the period. In addition , the production volume was at its lowest level in the period under review, 16% of the volume produced in 54 84 100 100 16 84 October-24 November-24 December-24 January-25 February-25 March-25 SAP TOTVS Production
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earnings release 1Q25 8 October 2024, due to the interruption of production for the migration of the ERP system and the delay in the resumption of activities after the migration to the new system. The billing in that first month was entirely based on the stock availability, previously built. In February, revenue reached only 54% of October's revenue, mainly due to the unavailability of some products, which already depended on the factory to be produced and reported with the new system. In the same month, all revenues were invoiced in the new system. Finally, in March, with factories resuming their pace and delivering better volume, we reached 84% of revenue and volume produced in the highest month of the previous year. Given the seasonality of the period, March numbers clearly reflect an evolution in revenue and deliveries from factories, and both are slightly higher than March 2024. Throughout the quarter, a continuous improvement was observed, day by day, in both invoicing and industrial processes. In this scenario, the operating income for the first quarter was constructed, and its composition among the three business segments may be observed below: Security Our Security segment faces strong demand in its main sales channel, with sell-out growing in line with the company's prospects for the period. On the other hand, the shortage of relevant products led to some level of disruption in our distributors, which may have generated an effective loss of sales. The 6.6% drop in revenue compared to the previous year does not reflect the market outlook, but in fact is due to the limitation during the transition of the system. Our factory in Manaus is gaining efficiency and working hard to recover the distributors’ inventories consumed during the period . There are challenges for this resumption to be accelerated, but the perspective is that, after March delivering closer to expectation, the sales backlog with open orders with distribution should be normalized over the next few months. From the gross margin point of view, there is a slight margin expansion in the segment quarter over quarter, but in line with the levels of the operation throughout the second half of 2024, indicating stability in this sense. 57%22% 21% 1Q25 Security ICT Energy 1Q24 Security ICT Energy
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earnings release 1Q25 9 ICT As observed in Security, our distribution channel reports activity levels as expected and in line with the seasonality of the year. In turn, the evolution of sales with providers was slightly lower than expected, also impacted by the challenges of starting the new system. The strategies for serving small and medium- sized providers via the distribution channel were hampered at the beginning of the new ERP's activities, which contributed to the drop in revenue. The market continues to evolve as expected, and the 6.1% drop in revenue, when compared to the same period of the previous year, is related to the challenges of adopting the new ERP system. As observed in Security, the gross margin of the ICT segment reported a slight expansion, when compared to the immediately previous quarter and represents the current business mix, also oscillating within the expectation for the year. Energy Our Energy segment reported a net operating revenue decline of 26.2% compared to the same quarter of the previous year. In this segment, in addition to the impacts generated by the adoption of the new ERP system, there is a relevant drop in the revenue of power-plant projects, large on-grid mini-generators, and off-grid generators, which had been reported in the previous period, through deals originated during the year 2023. This revenue reduction in projects, which magnified the drop in revenue in Energy , is due to the prioritization of profitability in Solar Energy operations and is in line with the segment's strategic perspective. The performance of the other business lines was impacted by the same bottlenecks generated by the system migration, and as observed in the other Business Units, a sell-out within the forecast was observed in our distribution channel. The gross margin, although oscillating within a perspective designed for the operation, suffered a slight compression when compared to the previous quarter and, as observed in the other business segments, reflects the expectation for the period. Cash and Debt Position As observed in the fourth quarter of 2024, a relevant volume of payments to suppliers, resulting from the acquisition of inventories to mitigate the drought in the Amazon River, and the ERP transition, consumed operating cash. We started the year with a total cash consumption of R$240,041 thousand, of which R$133,937 million in operating activities. More details can be seen in the table below : R$ thousands 1Q25 4Q24 ∆ R$ 1Q24 ∆ R$ Cash and cash equivalents at the beginning of the quarter 887,969 1,133,638 (245,669) 1,303,169 (415,200) Net cash used in operating activities (133,937) (117,956) (15,981) 212,342 (346,279) Net cash used in investing activities (27,327) (64,662) 37,335 (45,210) 17,883 Net cash provided by financing activities (78,777) (63,051) (15,726) (105,545) 26,768 Cash and cash equivalents at the end of the quarter 647,928 887,969 (240,041) 1,364,756 (716,828) On the other hand, there is a significant reduction in investment activities, which should remain at lower levels during 2025 than in the previous year.
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earnings release 1Q25 10 With the expected reduction in inventories throughout the year, the company should resume operating cash generation over the next few months, in order to recompose its cash position in accordance with management's strategy. The evolution of cash over the last quarter can be seen below: Our debt remain s at an adequate level, with a net inflow in the quarter of R$43,766 thousand, mainly through a contract previously signed with BNDES. Its breakdown is available in the following table : 03/31/2025 12/31/2024 03/31/2024 INSTITUTIONS Principal + Interest Movement Principal + Interest Movement Principal + Interest BNDES 274,896 24,354 250,542 32,022 218,520 FINEP 140,090 (7,669) 147,759 (26,816) 174,575 Debentures 527,172 17,270 509,902 (15,289) 525,191 Private banks and Credit Cooperatives 20,394 5,081 15,313 (7,910) 23,223 Total Loans 962,552 39,036 923,516 (17,993) 941,509 * NOTE: values in R$ thousands
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earnings release 1Q25 11 CAPEX The evolution of Capex during the first quarter represents a reduction in the need for expansion investments. Total Capex of R$27 million represents a reduction of 40% compared to the same period of the previous year and is in line with the company's plans. Perspectives Putting a new ERP management system in motion is considered one of the biggest challenges that management can face. Anticipated planning, construction of a solid and experienced team dedicated to the project, in addition to the investments made during preparation, sought to reduce the complexity of the transition. Currently, it is possible to say that Intelbras already operates wit h SAP, which means that the main bottlenecks of the migration have been solved. On the other hand, it is important to highlight that the Company has been operating for just over 120 days with its new system, it means that all employees already know it, but they are still becoming, step by step, more adapted to the new processes and new work routines. The current pace already indicates that our factories are operating to recover the inventories consumed during the first quarter, which should reduce our pending orders and the limitation of revenues observed in the first quarter in a relevant part of the business. Our Security segment has been standing out in its ability to rebuild inventories, which generates an important perspective of resuming revenue to the desired levels throughout the second quarter. In Information and Communication Technology, there are processes that still require evolution in the new ERP system, and th ey have been addressed to unlock some revenues that, although less relevant, are important for the deployment of the strategy, especially with internet service providers. We believe that the necessary efforts for this normalization have been carried out and will therefore be key to the resumption of the business from the new portfolios.
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earnings release 1Q25 12 It is also noteworthy that we maintain our strategy of prioritizing profitability in our Solar Energy businesses, which may limit us in terms of revenue growth during the year. Some larger projects, which require more aggressive margins, should have their share of the Energy BU revenues reduced when compared to the previous year. With this measure, we reinforce our focus on the commercialization of microgenerators, installed on the roof tops of homes, small and medium -sized businesses. The other businesses in this BU keep their track records and are according to the strategies that have been implemented over the last few quarters. Our execution routine during the second quarter still requires extra attention from management, so that the constant evolution of the new system remains, and there should be no setbacks. We are going through this moment due to a strategic and structuring decision, due to the evolution of the ERP system, aiming at the company's long-term growth prospects, with greater efficiency and governance. Finally, we understand that the planning carried out for the full year remains in force and in execution by the Company. To this end, part of the unrealized sales and unachieved results in the first quarter should be recovered from the replenishment of inventories in our distribution channel over the next few months. Even so, we know that the portion of sales effectively lost during the transition of the system will need to be recomposed with new initiatives and with more commercial efficiency over the next few periods. The results of the first quarter challenge and pressure revenue growth in the current year, but allow us, in addition to maintaining a positive outlook for the year, to be clear that they were impacted by a structuring system migration process, essential for the Company to develop its business in a more solid and efficient way in the long term. Earnings Conference 1Q25 May 09th 2025 at 11h00 BRT https://tenmeetings.com.br/ten-events/#/webinar?evento=ConferenciadeResultados1T25-INTELBRAS_938
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earnings release 1Q25 13 Statements of income 1Q25 4Q24 1Q24 Net operating revenue 921,267 1,287,676 1,039,031 Cost of sales and services (650,051) (914,323) (687,132) Gross profit 271,216 373,353 351,899 Operating income (expenses) Selling expenses (137,067) (174,354) (135,413) General and administrative expenses (50,783) (64,190) (63,424) Share of profit (loss) of subsidiaries - - - Equity - - - Other operating (expenses) income, net (30,965) 3,729 (8,047) (218,815) (234,815) (206,884) Operating profit before finance income (costs) 52,401 138,538 145,015 Finance income 46,224 48,620 52,089 Finance costs (44,128) (48,071) (36,568) Exchange gains (losses), net (5,051) (26,672) (6,130) Profit before taxes 49,446 112,415 154,406 Current income tax and social contribution (5,635) 1,278 (1,441) Deferred income tax and social contribution 17,783 13,846 974 Net income 61,594 127,539 153,939
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earnings release 1Q25 14 Balance Sheet 03/31/2025 12/31/2024 03/31/2024 Assets Current assets Cash and cash equivalents 647,928 887,969 1,364,756 Securities 44 140 2,937 Trade receivables 1,088,977 1,213,341 927,935 Inventories 1,743,468 1,772,722 1,331,658 Recoverable taxes 116,474 133,012 158,612 Derivative instruments 507 28,815 1,971 Other receivables 32,347 40,784 29,821 Total current assets 3,629,745 4,076,783 3,817,690 Noncurrent assets Securities 11,157 10,833 10,027 Trade receivables 20,564 35,576 24,919 Judicial deposits 5,215 5,120 5,686 Deferred taxes 101,156 83,447 67,595 Recoverable taxes 61,035 62,794 3,817 Related parties - - - Other receivables 778 783 3,501 Investments 6,287 5,849 4,518 Rights of use 15,040 17,293 12,944 Property, plant and equipment 684,119 686,234 619,303 Intangible assets 581,410 584,809 549,368 Total noncurrent assets 1,486,761 1,492,738 1,301,678 Total assets 5,116,506 5,569,521 5,119,368
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earnings release 1Q25 15 Liabilities Current liabilities Accounts payables 525,868 879,200 854,846 Accounts payables drawn risk 242,999 340,406 220,726 Borrowings and financing 233,545 211,119 134,203 Leases 6,689 6,981 5,672 Derivative instruments 12,119 - 6 Payroll, related taxes and profit sharing 100,497 121,788 107,384 Taxes payable 21,414 43,915 26,385 Provision for warranties 27,313 45,042 34,396 Provision for tax, labor and civil risks 1,612 1,767 1,430 Accounts Payable for Acquisition of Business 908 979 4,874 Commission costs - - - Interest on capital/dividends - 29,505 35,220 Other payables 139,639 115,669 106,763 Total current liabilities 1,312,603 1,796,371 1,531,905 Noncurrent liabilities Accounts payables - - - Borrowings and financing 729,007 712,397 807,306 Leases payable 9,296 11,233 7,653 Taxes payable 2,709 1,486 750 Provision for warranties 39,169 23,050 29,539 Provision for tax, labor and civil risks 19,449 18,929 20,724 Investments in negative equity - - - Accounts Payable for Acquisition of Business 25,864 25,117 27,503 Total noncurrent liabilities 13,403 14,402 15,320 Total noncurrent liabilities 838,897 806,614 908,795 Equity Share Capital 1,700,000 1,700,000 1,700,000 Earnings reserve (26,701) (26,701) (26,701) Treasury shares (1,657) (733) - Additional dividend proposed - - - Retained earnings 1,207,157 1,267,578 828,891 Valuation adjustments to equity (1,149) (1,125) (1,032) Cumulative translation adjustments 2,139 2,890 1,221 Profit reserves 61,462 - 154,034 Total equity 2,941,251 2,941,909 2,656,413 Non-controlling interests 23,755 24,627 22,255 Total liabilities and equity 5,116,506 5,569,521 5,119,368
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earnings release 1Q25 16 Cash Flow 03/31/2025 12/31/2024 03/31/2024 Cash flows from operating activities Profit before taxes 49,446 514,835 154,406 Adjustments to: Accrued interest and exchange differences (13,038) 244,800 35,914 Depreciation 17,015 55,932 12,330 Amortization 11,736 41,902 9,691 Share of profit (loss) of subsidiaries - - - Provision for tax, labor and civil risks 4,508 3,522 875 Allowance for expected credit loss 4,861 7,093 (2,783) Allowance for inventory losses 11,088 32,413 1,132 Tax credits (28,160) (134,214) (29,242) Present value adjustment (21,901) 4,971 (9,189) Accrued trade discounts 273 (351) (2,686) Provision for warranties (1,610) 8,180 4,023 Derivative instruments 40,921 (34,869) (5,429) Writing off financial liabilities - - - Result in the write-off of leases, fixed assets and intangibles 903 11,722 1,159 76,042 755,936 170,201 Changes in assets and liabilities (Increase) decrease in trade receivables 133,700 (286,622) 27,190 (Increase) decrease in inventories 29,782 (632,913) (155,863) (Increase) decrease in recoverable taxes 46,457 93,656 21,979 (Increase) decrease in escrow deposits (95) 634 68 (Increase) decrease in other assets 8,214 2,205 7,779 Increase (decrease) in trade payables (398,212) 182,262 185,921 Increase (decrease) in payroll, related taxes and profit sharing (21,291) 9,340 (5,064) Increase (decrease) in taxes payable (22,095) 14,877 (4,406) Increase (decrease) in other payables 18,379 (26,411) (30,625) Income tax and social contribution paid (4,818) (7,791) (4,838) Net cash provided by operating activities (133,937) 105,173 212,342 Cash flows from investing activities Acquisition of investments in subsidiaries - - - Acquisition of property, plant and equipment items (17,980) (136,587) (25,028) Acquisition of intangible assets (8,909) (84,510) (19,403) Capital increase in subsidiaries - - - Dividends received - - - (Acquisition) write‐off of other investments - - - Cash from business combinations - - - Acquisition (Write-off) other Investments (438) (2,110) (779) Net cash used in investing activities (27,327) (223,207) (45,210)
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earnings release 1Q25 17 Cash flows from financing activities Loans 43,766 131,609 43,355 Loans paid (principal) (24,978) (131,320) (33,876) Loans paid (interest) (3,742) (78,625) (4,488) Payment of lease (principal) (1,761) (6,895) (1,942) Payment of lease (finance charges) (349) (1,543) (236) Payables for acquisition of businesses (principal) - (8,267) (3,084) Payables for acquisition of businesses (interest) - (466) (466) Share Buyback Program (924) (733) - Payment of dividends – noncontrolling interests (863) (548) (548) Capital increase - - - Expenditures with issuing of shares - - - Dividends paid (89,926) (119,456) (58,558) Interest on capital paid - (80,922) (45,702) Net cash provided by (used in) financing activities (78,777) (297,166) (105,545) Increase in cash and cash equivalents, net (240,041) (415,200) 61,587 Cash and cash equivalents at the beginning of the year 887,969 1,303,169 1,303,169 Cash and cash equivalents at the end of the year 647,928 887,969 1,364,756
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18 Investor Relations ri.intelbras.com.br ri@intelbras.com.br intelbras.com.br