Page 1

IOCHPE - MAXION MANAGEMENT REPORT - 2Q21 MYPK B3 LISTED NM 1 ) MESSAGE FROM THE CEO Despite the uncertainties related to the pandemic , the results of the global automotive industry during the second quarter of 2021 showed a significant recovery in vehicle sales and production when compared to the same period of the previous year . Demand in the main markets has been consistent , but the supply of certain inputs , mainly semiconductors , is still irregular , significantly limiting the production of light vehicles and with less impact on the production of commercial vehicles . Global automotive production ( excluding China ) , according to IHS , increased by 97.0 % in the second quarter of 2021 , compared to the second quarter of 2020 , the most impacted period since the beginning of the pandemic . The highlight continues to be the commercial vehicle segment , with growth in practically all regions where the Company operates . Our net operating revenue increased 171.7 % in 2Q21 compared to 2Q20 , reaching R $ 3.2 billion , a new quarterly revenue record for the Company , driven mainly by strong demand and production of commercial vehicles . We achieved an adjusted EBITDA of R $ 602.0 million in 2Q21 , with a margin of 18.9 % , a significant increase compared to the negative result observed in the previous year . It is worth mentioning that even without considering the gain related to the final court ruling regarding the exclusion of ICMS from the PIS / Cofins calculation basis , recognized in 2Q21 , and other non - recurring effects , we would have an EBITDA of R $ 404.9 million with a 12.7 % margin , a quarterly record for the Company . 2Q21 operating results continue to reflect : ( i ) the recovery scenario in world vehicle production ( despite the shortage of semiconductors ) , ( ii ) the evolution in execution and operational efficiency , ( iii ) the restructuring carried out in 2020 , and ( iv ) the positive effect of the diversified business model ( geographies , customer base , product portfolio and light and commercial segments ) . In relation to the balance sheet , financial leverage , measured by the ratio of net debt to adjusted EBITDA for the last twelve months , was reduced from 5.73x in 1Q21 to 2.74x in 2Q21 . Reduction driven by both the increase in EBITDA and the reduction in net debt . We continue to make progress in improving the capital structure : ( i ) we maintained our liquidity position at R $ 1.3 billion , a level that is still high ; ( ii ) we performed liability management with the issuance of US $ 400 million in sustainability - linked bonds and R $ 320 million ( out of a total of R $ 940 million ) from the line with development banks , using these resources in the amortization of short - term debt . During the 2Q21 , we were once again recognized for the work carried out with our clients . Our Maxion Structural Components division in South America received the " Suppliers Excellence Award " from CNH Industrial and in North America the “ Masters Quality Buses of Mexico " from Daimler Buses Mexico . And our Maxion Wheels division received the " Logistic & Quality - Excellence Performance Award " from Honda in Brazil , “ Honda Service Award " from Honda in Mexico , " Certificate of Achievement - Quality and Delivery " from Isuzu in Thailand and the " Supplier Quality Excellence Award " from GM in the United States , Mexico and Brazil . In line with our digital transformation strategy conducted globally at our units and our commitment to environmental aspects , we received from Mercedes - Benz of Brazil the “ Environmental Page 1 de 12