Plascar Participações Industriais S A : Results 1Q 2024

EARNINGS RELEASE 1Q2024

Plascar Participações Industriais S.A. (Bovespa: PLAS3), by way of its subsidiary Plascar Ltda., is a Brazilian industry which in 2023 celebrated 60 years of history in plastic transformation and development of parts and internal and external finishes for vehicles by supplying high quality products to most automakers operating in Brazil.

Plascar has four plants strategically positioned in the States of São Paulo and Minas Gerais that host a parking site of injectors having a closing force capacity of 70 to 3,200 tons, automatic and manual painting lines, chrome plating, metallization, welding, and SMC press machines, in addition to its own tooling for the construction and maintenance of molds.

Ownership Structure

11.25%

Other

Shareholders

7.12%

Postalis

21.64%	59.99%
Deise Duprat V.	Pádua
Heller and	IV*
Family

*a Mapa Capital's indirect subsidiary

Stock Quote at

03/31/24

PLAS3 - R$ 9.50

Number of Shares

Common: 12,425 million

Market Price at

03/31/24

R$ 118.04 million

BOARD OF DIRECTORS

Antonio Farina

Daniel Alves Ferreira

João Luís Gagliardi Palermo

Paulo André Porto Bilyk

Paulo Zimath

SUPERVISORY BOARD

Charles Dimetrius Popoff

Maria Gustava Heller Brito

Luiz Carlos Zavata

INVESTOR RELATIONS

CONTACT

Rodrigo Cartagena do Amaral

Chief Financial and Investor

Relations Officer

[e-mail]

Rua Wilhelm Winter, 300 - Distrito

Industrial - Jundiaí - SP

CEP 13213-000

HIGHLIGHTS 1Q24

Plascar Participações Industriais S.A.

R$ 313.0 million

13.7% vs. 1Q23

Gross Revenue

R$ 20.2 million

8.1% margin

EBITDA

Plascar's Performance vs. the Market

0.37% in production of vehicles¹ in Brazil vs. 1Q23

+13.7% in gross revenue vs. 1Q23

¹ Source: ANFAVEA

Performance in the Period

R$ thousand	1Q2024	1Q2023	Var %
Gross Revenue	313,039	275,218	13.74%
Net Revenue	249,208	224,267	11.12%
Gross Profit	44,206	24,661	79.25%
Gross Margin %	17.7%	11.0%	60.91%
EBITDA	20,152	6,273	221.25%
EBITDA Margin %	8.1%	2.8%	5.3 p.p
Profit (loss)	(30,017)	(41,296)	27.31%

Management Analysis and Discussion

Plascar started 2024 with positive results compared to the first quarter of 2023. The automakers' increased ability to plan production levels from the rise in sales was crucial to reduce production inefficiencies and consequently increase the Company's operating margins. This is reflected in the 5.3 p. improvement in EBITDA margin.

This positive scenario led Net Revenue for 1Q24 to increase by 11.1% compared to the same period in 2023. Also, when comparing Plascar's performance with that of the market, the Company clearly continues to gain confidence as according to ANFAVEA vehicle production increased only 0.37%, which is lower than the Company's growth.

This scenario, coupled with Management's efforts to optimize resources, led the Company to close the quarter with a positive variation in EBITDA and record Loss compared to the first quarter of 2023.

Management continues to pursue new projects and believes that the projects that will be initiated along the year will positively contribute to the Company's results. In addition, with the expected 6% growth in vehicle production for 2024, as estimated by ANFAVEA, the upcoming quarters are expected to reflect such increase

Automotive

Market

The first quarter of 2024 followed the trend of growth that began in the second half of 2023, reaching, in March, the highest production volume of the last four months, according to ANFAVEA. This period totaled 538 thousand units produced, representing a 0.4% increase compared to the same period of the previous year. Furthermore, there is a noticeable recovery in the heavy-duty vehicles sector, as production in the first quarter was 19.7% higher than that recorded in the same period in 2023.

On the other hand, sales recorded a 9.1% increase in 1Q24 over the same period in 2023. This significant increase is very positive as it indicates a decrease in automakers' inventories and a promising outlook for production growth in the coming periods.

Plascar's Net Revenue vs. the Market

Performance

698		665
		613							619
586	598	596						596
					536	574	538
	496
														255.3	249.2
		233.3										242.4
		225.2	224.3	225.1
	192.8	196.9

142.3

91.7

75.2

1T19	1T20	1T21	1T22	2T22	3T22	4T22	1T23	2T23	3T23	4T23	1T24
		Receita Líquida (BRL MM)			Produção de Veículos - ANFAVEA ('000)

Based on the positive results achieved in 1Q24, ANFAVEA believes in the materialization of its 6% increase forecast announced at the beginning of the year.

	AUTOMOTIVE OUTLOOK			1Q24			1Q23			Var %
	Vehicle Production			538			536			0,37%
	Vehicle Sales	515		472		9,11%
	Source: ANFAVEA - BRAZIL

Net Revenue

Net Revenue in 1Q24 was 11.1% higher than in 1Q23. This result was mainly due to the new projects that went into production throughout 2023 and in 1Q24. Management's expectation is that the upcoming periods will continue to show revenue growth, following the trend of continuous growth since the beginning of the Company's restructuring process.

Net Revenue (R$ thousand)

917,129

848,190

612,684

407,550

369,188

2019

2020

2021

2022

2023

249,208

11.1%

224,267

Gross Revenue increase 13.74% compared to the same quarter of the previous year. This rise is attributable to the recovery of the heavy-duty vehicles sector as well as the increase in sales and, consequently, reduction of light vehicle inventories, which was a constraint throughout 2023.

The recovery of the heavy-duty vehicles segment in 1Q24 led to its share of Plascar's revenue reaching 26.71%, the highest value since 4Q22. Compared to the previous quarter, the increase was 1.98 percentage points. This recovery was felt across the sector as a whole after the decline caused by the implementation of Euro 6, where, according to ANFAVEA, production was 19.7% higher than the same period in 2023. Meanwhile, light vehicles remained in line with the previous quarter and the first quarter of 2023.

Gross Revenue

6.13%	4.42%	5.49%	5.81%	4.47%	3.64%	3.46%	3.60%	2.27%
				25.15%	21.82%	20.37%	24.73%	26.71%

26.58%	32.91%	65.65%
	37.31%

67.29%	70.38%	74.54%	76.17%	71.67%	71.02%
62.67%

58.86%	56.88%

1T22

2T22

3T22

4T22

1T23

2T23

3T23

4T23

1T24

Gross Profit in 1Q24 improved 79.3% over 1Q23 whereas EBITDA improved 221.3% over the same period. This result is attributable to the increased efficiency achieved from several productivity improvement actions and, also, from automakers' increased production planning ability.

Gross Profit/(Loss)	EBITDA (R$ thousand)
	(R$ thousand)
		79.3%
	44,206		221.3%	20,152

24,661

6,273

1T23		1T24		1T23		1T24

This 1Q24 scenario also impacted Loss, which closed at R$ 30,017 thousand against the R$ 41,296 thousand recorded in 1Q23.

Loss (R$ thousand)

1T23	1T24
	-30,017
-41,296

Net Debt

Net Debt in 1Q24 increased R$ 13.3 million over the prior quarter. The objective of this increase was to ensure the Company's liquidity.

Net Debt (R$ thousand)

444,182

191,860	200,903
187,596

118,075 104,556 126,506

4T2018

4T2019

4T2020

4T2021

4T2022

4T2023

1T2024

Nevertheless, the Company's indebtedness level remained consistent with that of previous quarters.

Net Debt/EBITDA

7.3x

3.4x

1.8x

1.69x

1.75x

4T18

4T19

4T20

4T21

4T22

4T23

1T24

-4.7x

-5.2x

Statements of profit and loss for the years ended March 31, 2024 and 2023 (In thousands of reais - R$)

		Parent		Consolidated
		03/31/2024	31/03/2023	03/31/2024	31/03/2023
Net operating revenue	-	-	249,208	224,267
Cost of sales	-	-	(205,002)	(199,606)
Gross profit
-	-	44,206	24,661
Operating income/(expenses)
Selling expenses	-	-	(15,852)	(12,675)
General and administrative expenses	(671)	(427)	(24,180)	(20,106)
Share of profit (loss) of investee	(29,440)	(40,921)	-	-
Other operating expenses, net	-	-	341	527
Profit	(30,111)	(41,348)	(39,691)	(32,254)
Profit (loss) before finance income (costs)	(30,111)	(41,348)	4,515	(7,593)
Finance income (costs)
Finance costs	(8)	(51)	(35,427)	(36,504)
Finance income	102	103	1,418	3,241
		94	52	(34,009)	(33,263)
Loss before income tax and social contribution	(30,017)	(41,296)	(29,494)	(40,856)
Deferred income tax and social contribution	-	-	(523)	(440)
		-	-	(523)	(440)
Loss for the year
(30,017)	(41,296)	(30,017)	(41,296)
Loss attributable to:
Owners of the Company	-	-	(30,017)	(41,296)
		-	-	(30,017)	(41,296)