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Jaraguá do Sul , Brazil , October 27 , 2021 EARNINGS RELEASE 3Q 2021 Solid and consistent growth in challenging operating environment Highlights Net Operating Revenue ( NOR ) was R $ 6,198.2 million in 3Q21 , 29.1 % higher than 3Q20 , and 7.8 % higher than 2Q21 ; to EBITDA ) reached R $ 1,144.0 million , 22.3 % higher than 3Q20 and 17.9 % lower than 2Q21 * , while EBITDA margin was 18.5 % , 1.0 p.p. lower than 3Q20 , and 5.7 p.p. lower than the previous quarter * ; Return on Invested Capital ( ROIC ) reached 31.3 % in 3Q21 , up 8.0 p.p. from 3Q20 and down 0.9 p.p. from 2Q21 . Message from the Management The performance this quarter was positive in all of our business areas , despite the recent increase in operational costs , a reflex of the industrial activity improvement and the good demand for our products and services in the markets where we operate . The Brazilian market was the main highlight , based on the consistent good demand observed in recent quarters . Short - cycle equipment revenues remained positive for both industrial and commercial segments , emphasizing electric motors ( industrial and commercial ) , automation , and solar distributed generation ( GD ) businesses . The GTD business performance was key for the reported growth for the long - cycle products , primarily because of the good performance on transmission & distribution ( T & D ) and wind generation . We posted another quarter of solid growth in the external market , justified by the continued demand improvement for industrial products . We registered sales growth on major markets , highlighting mining , oil & gas , and water & wastewater segments . In addition to the Industrial Electro - Electronic Equipment business , the good performance of the Commercial and Appliance Motors and GTD areas are worth mentioning , with sales improvements and increased share in important markets . The challenges observed in the global supply chain and the consequent higher raw material cost , along with the change in the products mix , led to a reduction in operational margins this quarter . On the other hand , higher commodities prices unlock investments in significant industries such as oil & gas , mining , and pulp & paper , which contributed to build or backlog for coming quarters . We reiterate the efforts to adapt and respond in an agile and efficient manner to the challenges imposed by the impacts of the pandemic in the global supply chain so far . Our vertical integrated business model allowed us to provide greater product availability and seize sales growth opportunities with market share gain in the main regions where we operate . 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 Eamings per Share ( EPS ) * 3Q21 2Q21 % 31,3 % 32,2 % -0,9 pp 6.198.243 5.748.206 2.930.945 3.267.298 624.344 812.925 7,8 % 2.577.971 13,7 % 3.170.235 3,1 % 13,1 % 1.144.010 18,5 % 600.806 3,9 % 1.134.709 -28,4 % 19,7 % -6,6 pp 1.392.718 -17,9 % 24,2 % -5,7 pp 0,27045 -28,4 % 0 , 19372 WEGE B3 LISTED NM wed IBOVESPA B3 IGC - NM B3 INDX B3 IGC B3 09M21 % 23,3 % 8,0 pp 2.716.068 20,3 % 505.040 23,6 % 31,3 % 4.801.260 29,1 % 17.023.328 2.085.192 40,6 % 7.852.024 9.171.304 1.723.270 644.246 26,2 % 2.711.892 13,4 % -0,3 pp 15,9 % 935.332 22,3 % 3.553.580 19,5 % -1,0 pp 20,9 % 0,15355 26,2 % 0,64628 * EBITDA and Net Income in 2Q21 were positively impacted by the tax credits referring to the exclusion of ICMS from the PIS and COFINS calculation basis 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 . Earnings per Share data is adjusted for split or bonus events . IBRA B3 IGCT B3 3Q20 IBRX100 B3 MLCX B3 IBRX50 B3 ITAG B3 09M20 % 23,3 % 8,0 pp 12.579.639 35,3 % 5.381.871 45,9 % 7.197.768 27,4 % 1.413.813 21,9 % 1.598.644 69,6 % 12,7 % 2.286.668 18,2 % 2,7 pp 0,38104 69,6 % 3,2 pp 55,4 % MSCI ESG Leaders Indexes Constituent ISE B3 ICO2 B3 2020