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Management Report We present the Management Report and the Individual and Consolidated Financial Statements of Itaúsa S.A. ( Itaúsa ) for the first quarter of 2021 ( 1Q21 ) . These Financial Statements have been prepared in accordance with the standards established by the Accounting Pronouncement Committee ( CPC ) and approved by the Brazilian Securities and Exchange Commission ( CVM ) , as well as the International Financial Reporting Standards ( IFRS ) . Independent auditor's report The Financial Statements were audited by PricewaterhouseCoopers Auditores Independentes ( PwC ) and received an unqualified opinion from the external auditor . The Financial Statements have been approved by the Fiscal Council . The Financial Statements were made available to the market on the websites of Itaúsa , B3 S.A. – Brasil , Bolsa , Balcão ( " B3 " ) , and the CVM . 1. Message from Management The first months of 2021 were marked by the progress in the rollout of the Covid - 19 vaccination program and the fiscal and monetary stimulus packages launched by the world's developed economies , which has led to expectations that these economies will fare better . In Brazil , the vaccine rollout for a greater number of people moving forward into the second quarter , coupled with the reduction in government emergency aid , has reduced market expectation for the Brazilian economy in 2021 . Our portfolio companies have once again proved their resilience through the operating results . In the financial sector , the performance of the financial margin has been improved , and noteworthy were the Financial Margin with the Market and the lower volume of expected loan losses , in addition to the efficient management of general and administrative expenses , which favored a significant rise in profit . In consumer goods and materials for civil construction materials segments , Alpargatas and Duratex recorded increases in the volume of sales , as well as in net revenue and EBITDA , despite the pressure on cost of certain raw materials . It is worth mentioning that this has been the best first quarter ever in Duratex's history . In the gas distribution and transportation segments , NTS and Copagaz also recorded higher revenues . These companies and Itaúsa continue to operate with all security protocols , including remote work in administrative areas , measures in operational units and stores , and strengthening hygiene and security procedures in areas with common access . The ongoing efforts to improve the Company's governance has seen the latest Stockholders ' Meeting electing three new independent members to the Board of Directors , bringing in new expertise and more diversity to the board . Now with 33 % of independent members , the new composition of the Board of Directors is aligned with the best Governance practice guidelines recommended by local and foreign ESG institutes and agencies , such as the Brazilian Institute of Corporate Governance ( IBGC ) in Brazil and the FTSE4Good and Dow Jones Sustainability Index abroad . Regarding portfolio management , at the end of April 2021 Itaúsa announced the execution of an Investment Agreement for the purchase an 10.20 % of voting capital and 8.53 % of total capital of Aegea , the leading company of Brazil's private basic sanitation sector , and the increase in its equity interest in NTS to 8.50 % from 7.65 % . In addition , regarding the spin - off of Itaú Unibanco involving participation in XP Inc. and the consequent creation of XPart , we highlight that the conclusion of the transaction is still awaiting approval from the Federal Reserve ( FED , the American central bank ) . Once the transaction is completed , XPart and XP Inc. will be able to submit the merger of XPart by XP Inc. for resolution at their respective Shareholders ' Meetings . Management Report > Itaúsa 1Q21 2