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Jaraguá do Sul , Brazil , February 24 , 2021 EARNINGS RELEASE 4Q 2020 Solid performance with improved operating margins Highlights Net Operating Revenue ( NOR ) was R $ 4,889.9 million in 4Q20 , 29.4 % higher than 4Q19 and 1.8 % higher than 3Q20 . HA O EBITDA ( ¹ ) reached R $ 981.0 million , 47.2 % higher than 4Q19 and 4.9 % higher than 3Q20 , while EBITDA margin was 20.1 % , 2.5 p.p. higher than 4Q19 and 0.6 p.p. higher than the previous quarter . Return on Invested Capital ( ROIC ) reached 25.5 % in 4Q20 , up 5.3 p.p. from 4Q19 and up 2.2 p.p. from 3Q20 . Message from the Management This quarter we continued to observe the improvement in economic activity , especially in Brazil , where the recovery observed since 3Q20 , drove the demand for our products and solutions . This recovery , combined with our efforts to control costs and operational efficiency , were determining factors for the good results presented in this quarter . The performance in the domestic market was positive , reinforcing the improvement observed in important business areas , such as Commercial and Appliance Motors and Paints and Varnishes , areas with a predominance of short - cycle goods . The Industrial Electro - Electronic Equipment and Energy Generation , Transmission and Distribution ( GTD ) areas also showed positive growth compared to the previous quarter , specifically on the long cycle businesses linked to important segments such as pulp & paper , mining , oil & gas and power generation and transmission . In the external market , we continue to see a gradual recovery in short - cycle businesses , although slower , remains constant since the end of the second quarter of 2020 , which were the worst months of the pandemic and its impact on our business . The activity related to long - cycle projects , mainly in the Industrial Electro - Electronic Equipment , showed signs of volatility , as already anticipated , reducing the growth rate , resulting in a decrease of consolidated revenue in local currencies in the external market . Despite the positive business dynamics this quarter , we consider that the crisis caused by COVID - 19 is yet to be overcome . Uncertainties regarding the global economic recovery exist and future impacts in several industry segments may reflect on our business , whether in the demand for short - cycle goods or projects related to long cycle goods . Table 1 - Main Highlights Return on Invested Capital Net Operating Revenue Domestic Market External Markets External Markets in US $ Net Income Net Margin EBITDA EBITDA Margin Earnings per Share ( EPS ) 4Q20 3Q20 % 25.5 % 23.3 % 2.2 pp 4,889,918 4,801,260 1.8 % 2,247,916 2,085,192 7.8 % 2,642,002 2,716,068 -2.7 % 490,086 505 , 040 -3.0 % 644,246 15.2 % 13.4 % 1.8 pp 935,332 4.9 % 19.5 % 0.6 pp 0.30711 15.2 % 742,229 15.2 % 981,015 20.1 % 0.35383 WEGE B3 LISTED NM шед IBOVESPA B3 IGC - NM B3 % 20.2 % 5.3 pp 12M20 25.5 % 3,778,846 29.4 % 17,469,557 1,643,088 36.8 % 7,629,787 2,135,758 23.7 % 9,839,770 518,818 -5.5 % 1,903,899 500,487 48.3 % 2,340,873 13.2 % 2.0 pp 13.4 % 666,441 47.2 % 3,267,683 17.6 % 2.5 pp 18.7 % 0.23862 48.3 % 1.11592 INDXB3 IBRA B3 IGC B3 IGCT B3 4Q19 ( 1 ) Earnings before Interest , Taxes , Depreciation and Amortization . The following financial and operating data are presented on a consolidated basis , except when otherwise indicated , in thousands of Brazilian Reais ( R $ ) according to accounting practices adopted in Brazil , including Brazilian Corporate Law in convergence with IFRS international norms . Except when otherwise indicated , growth rates and other comparisons are made to the same period of the previous year . IBRX100 B3 MLCXB3 12M19 % 20.2 % 5.3 pp 13,347,434 30.9 % 5,563,048 37.2 % 7,784,386 26.4 % 1,969,872 -3.3 % 1,614,581 45.0 % 12.1 % 1.3 pp 2,244,517 45.6 % 16.8 % 1.9 pp 0.76978 45.0 % IBRX50 B3 ISE B3 ITAG B3 MSCI ESG Leaders Indexes Constituent ICO2 B3 2020