3Q22 Results

December 19, 2022

Disclaimer

This presentation may include declarations about Springs Global's expectations regarding future events or results. All declarations based upon future expectations, rather than historical facts, are subject to various risks and uncertainties.

These risks and uncertainties include factors related to the following: the Company´s business strategy, the international and the Brazilian economies, technology, financial strategy, developments in the textile and retail sectors, market conditions, among others. To obtain further information on factors that may give rise to results different from those forecasted by Springs Global, please consult the reports filed with the Brazilian Comissão de Valores Mobiliários (CVM, equivalent to U.S. "SEC").

Operational restructuring

  • Restructure of the industrial operation, in order to improve its profitability, with the simplification of its product lines, reducing from approximately 7,000 to approximately 1,500 SKUs manufactured concurrently
  • Wholesale sales will be concentrated on products under the Santista brand, with its own production, while Artex. Mmartan and Casa Moysés brands will be exclusive to AMMO Varejo
  • This optimization of production makes it possible to reduce industrial complexity, with productivity gains, in terms of unit cost and reduction of percentage fo second quality, due to the increase of the production batches, resulting in the reduction of working capital, and therefore, contributing to better profitability for our shareholders

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Combination of Keeco and Hollander businesses

  • In 3Q22, the business combination of New Keeco Holdings, LLC, Springs Global's indirect subsidiary that was available for sale, was completed with Hollander Parent Corporation, forming a new combined company called Keeco, Inc., with consolidated revenues equivalent to US$1.3 billion
  • With this transaction, Springs Global has an expectation that is stake in Keeco will have an important valorization in the coming years, through business growth and obtaining operational and administrative synergies
  • On the other hand, with the postponement of the sales of its share in Keeco, the Company began to look for other sources of liquidity to reduce its financial leverage

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Debt management

  • Renewal of significant portion of its debt agreements, equivalent to R$ 254 million, and waiver of compliance with financial ratios for June 30, 2022 and December 31, 2022 for a relevant part of their contracts.
  • Allocation of non-operating properties for sale in 4Q22: São Gonçalo do Amarante- RN available for sale, R$ 373.8 million1
  • Reduction of loans receivable from companies in the Coteminas group: R$ 202.2 million1, mainly with CTNM, due to sale of properties and business, which are in progress

1Balancesheet valuesas of September30, 2022

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Springs Global Participações SA published this content on 19 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 December 2022 13:14:04 UTC.