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IOCHPE - MAXION MANAGEMENT REPORT - 3Q21 MYPK B3 LISTED NM 1 ) MESSAGE FROM THE CEO During the third quarter of 2021 , the global automotive industry still faced uncertainties and interruptions in the supply of essential inputs for the production of vehicles , mainly semiconductors . The global automotive production ( excluding China ) of light vehicles , according to the IHS consultancy , showed a drop of 21.1 % in the third quarter of 2021 , compared to the third quarter of 2020. The positive highlight continues to be the segment of commercial vehicles , with global production growth of 8.8 % ( excluding China ) , according to LMC consultancy . Our net operating revenue increased 42.5 % in 3Q21 compared to 3Q20 , reaching R $ 3.6 billion , a new quarterly revenue record for the Company , driven mainly by the strong demand and production of commercial vehicles and by the launch of new programs and products . In 3Q21 , the commercial vehicle segment represented 48.4 % of the net operating revenue , compared to 37.2 % in 3Q20 . We achieved an adjusted EBITDA of R $ 483.7 million in 3Q21 , with a margin of 13.5 % , an increase of 100.7 % compared to the previous year . It is worth mentioning that without considering the non - recurring effects , mainly the gain from the sale of the real estate of the Akron plant , in the United States , our adjusted EBITDA would have been R $ 455.3 million with a margin of 12.7 % , a new quarterly record for the Company . The operating results for 3Q21 continue to reflect our evolution in execution and operating efficiency , the restructuring carried out in 2020 and the positive effect of the diversified business model : geographies , customer base , product portfolio and light and commercial vehicle segments . We posted a net income of R $ 177.0 million in 3Q21 , a substantial improvement over the net loss of R $ 18.9 million in 3Q20 . In relation to the balance sheet , we showed once again a reduction in financial leverage , measured by the ratio of net debt to adjusted EBITDA for the last twelve months , from 2.74x in 2Q21 to 2.66x in 3Q21 . The reduction in leverage occurred despite ( i ) the 9 % devaluation of the Real , which impacted foreign currency indebtedness ; and ( ii ) the increase in working capital , mainly in inventories , resulting from the cost increase of raw materials and the devaluation of the Real , as well as sudden and unplanned production stoppages by our customers due to the lack of semiconductors . We ended the 3Q21 with a cash position of R $ 1 billion . Regarding recognition in the automotive industry , the Maxion Structural Components division was recognized in the " Autodata Best of the Year " award in Brazil , in the supplier of parts and components category while Maxion Wheels division was recognized in the exporter / supplier category . Also Maxion Wheels division received the " Regional Supplier Quality Award Finalist " from Nissan in Thailand , and the " A grade " quality certificate in India by Skoda , a subsidiary of the Volkswagen Group . We remain attentive to market movements and prepared to act in a timely manner . We will remain focused on executing the long - term strategic agenda , with innovation projects , consistently advancing in the efficient use of our production Page 1 of 11