CVC Brasil Operadora e Agência de Viagens S A : Standard Financial Statements 2022*

Financial Statement

CVC Brasil Operadora e Agência de Viagens S.A. and subsidiaries

December 31, 2022

Directors' Statement

In compliance with the provisions contained in article 25 of Instruction of the Securities Commission n. 480, of December 7, 2009, as amended, the Company's Statutory Directors declare that (a) they reviewed, discussed and agreed with the financial statements related to the fiscal year ended on December 31, 2022; and (b) reviewed, discussed and agreed with the opinion presented in the audit report of Ernst & Young Auditores Independentes S.S., issued on March 14, 2023, on the financial statements for the fiscal year ended on December 31, 2022 that are being presented.

Leonel Dias de Andrade Neto

Chief Executive Officer

Marcelo Kopel

Director of Finance and Investor Relations

MANAGEMENT REPORT

Message from Management

The year 2022 was a milestone in the trajectory of CVC Corp in terms of Digital Transformation and the development of "omnichannel", with relevant deliveries such as a new storefront system as well as interaction with customers in B2C, Customer Loyalty Program (called "Clube CVC"), Financing Center (or Credit Marketplace), and dynamic product pricing system. These deliveries have allowed us to seek new levels of efficiency and will make it possible for us to enjoy greater operating efficiency and, consequently, operating leverage. Also noteworthy was the evolution of our CRM, which already exceeds 34 million contactable customers, thus creating support for a relationship journey through targeted campaigns that will contribute toward higher conversion and greater customer loyalty, our CRM is already integrated with the new B2C platform and with all sales channels (website, store and app).

An amount of more than R$ 400 million has been invested in technology since 2020, of which more than R$ 240 million was in 2022 alone, an absolute record for the company that ends a more accelerated cycle of tool development. Due to everything that was done throughout 2022, CVC won, for the 12th consecutive year, the Top-of-Mind award in the "Tourism Agency" category and made its debut in the new "Tourism Application" category.

In line with the digitalization strategy, several weeks ago we launched ConecTaaS, a new platform for integrating APIs, which increases connectivity and facilitates access for CVC agencies to sell products. The platform is plug-and-play, and functions like a product showcase.

With the aim of expanding the means of payment and convenience for our customers, we recently started to allow the use of Livelo (rewards program) points, which can be used to cover the total or partial amount of the purchase of travel products. This new offering is now available throughout the CVC network, and all Livelo customers can enjoy this new benefit at all CVC brick-and-mortar locations. We have a long-standing partnership with Livelo (since 2016), when we became suppliers of products related to the tourism sector, through the official website of the company's rewards program.

With regard to results, our bookings and earnings progressed throughout 2022, demonstrating the recovery of the market and the Company's performance capacity. Confirmed and consumed bookings increased both in Brazil and Argentina, and, consequently, the net revenue between periods grew as well. Our deliveries - whether in terms of results or the enhancement of our operation - are aligned with our values, especially "We Honor our Commitments".

Throughout 2022, we endeavored to support our customers in the use of travel credits resulting from the restrictions imposed by the pandemic. This amount fell 62% compared to the final balance of 2021 (from R$ 761 million to R$ 293 million). We also made progress on the operating efficiency front, which resulted in better control of expenses. In early 4Q22, we began the process of reassessing structures and streamlining suppliers, in addition to a major overhaul of internal processes. This process will extend throughout 2023 and will be supported by an external consulting firm, focusing primarily on revising operational activities.

In view of the strong recovery in sales in 2022 and the growth forecasts for the coming years, we have been constantly assessing our capital structure. Last June, the Offer of Shares of R$ 403 million was ratified, and we are currently in the final stages of negotiations for the reprofiling of our debt. We hired an advisor to assist us, and this month we released to the market a proposal for reprofiling our entire debt; the broad acceptance of this proposal indicates that we are on the right path, building a more solid and profitable company, with the support of shareholders and debenture holders. When completed, CVC Corp will have its lowest level of gross debt since 2017.

We started out 2023 with the best January in sales since the onset of the pandemic, with all areas of the company focused on bringing the best offers in products, services, and payment terms to our target audience. This is all being done in a way that is supported by a refurbished and robust IT structure, with a better customer experience, capable of supporting the increase in demand. We believe that these bases will allow us to take advantage of opportunities on the market throughout the year, and thus report sales growth and evolution in our profitability.

Consolidated performance comments for 4Q22 and 2022

(The information below compares the following: three-month period ended December 31, 2022 and 2021 (4Q22 and 4Q21, respectively) and the years ended December 31, 2022 and 2021 (2022 and 2021, respectively).

R$ million

Net revenue

Sales expenses

General and administrative expenses Other operating revenues (expenses)

EBITDA

Depreciation and amortization Equity in net income of subsidiaries Financial income (loss)

Income tax

Loss

	4Q22	4Q21		∆
	321.4	314.0		2.4%
(62.1)	(64.8)	-4.2%
(249.3)	(254.7)	-2.1%
73.0	(29.9)		n.a.
	83.0	(35.4)		n.a.
(53.4)	(60.7)	-12.0%
(0.3)	-		n.a.
(111.6)	(42.1)	165.1%
(14.4)	(7.5)	92.1%
	(96.8)	(145.8)		-33.6%

2022	2021	∆
1,221.6	825.9	47.9%
(243.3)	(159.8)	52.2%
(908.4)	(801.0)	13.4%
96.7	(100.2)	n.a.
166.5	(235.1)	n.a.
(203.2)	(208.6)	-2.6%
(0.9)	-	n.a.
(309.5)	(101.7)	n.a.
(86.4)	58.7	n.a.
(433.4)	(486.6)	-10.9%

Net revenue

Net Revenue in 2022 grew 47.9% over 2021, reflecting the performance in Consumed Reserves, contributing to the improvement of operating results. In 4Q22, Net Revenue was similar to the same period last year, with the growth in Reserves partially offset by a drop in the take rate, due to the business and product mix, such as increased maritime product sales and lower occupancy in exclusive products in certain locations.

Sales expenses

In 4Q22, CVC Corp's Sales Expenses decreased 4.2% compared to 4Q21 while in the year they grew by 52.2%, reflecting the increase in Consumed Reserves in Argentina and Brazil.

In Brazil, there was a different timing of marketing expenses over the quarters, as a result of business needs and the environment of the tourism sector, with the growth of this item, in 2022, being similar to the growth of B2C Confirmed Reservations, remembering that in 2022 we celebrated 50 years of CVC and we had marketing actions related to that.

In 2022, Credit Card Expenses in Brazil had a lower growth than Consumed Reserves (+47.3%), as a result of the usual fluctuations in the receipt mix throughout the year. Additionally, in 4Q22, there was an effect of the increase in consumed reserves of the maritime product, in which payment is processed directly at the shipowner, with CVC Corp only commissioning for this service.

Throughout the year, there was less representation of the use of payment slips, mainly due to the implementation of the financing center (Credit Marketplace).

Finally, the accumulated PCLD for the year 2022 portrays the growth in operations that occurred in the year, which follows conservative rules in granting credit, as well as it is observed that in 2021 this item presented a positive value due to the high volume of loan reversals provisions set up in 2020, due to the pandemic.

In the Argentine operation, there was a reduction in sales expenses, when compared to 4Q21, due to (i) reduction in expenses associated with processing payments by credit card, given the restriction imposed by the government in the form of installment payments for international travel in the retail operation (mainly Almundo), resulting in more cash payments and (ii) lower marketing expenses, as in Brazil, due to the timing of these expenses over the quarters. In the annual comparison, sales expenses remained stable.

General and administrative expenses

General and administrative expenses were practically stable when compared to 4Q21 due to the rationalization and greater control of fixed expenses, offset by the effects of union agreements (adjustment of 5.82%, as of November 2022 in Brazil, and around 65% in local currency in Argentina in the last 12 months). In the accumulated result for the year, the strengthening of several areas, Information Technology and Operations, contributed to the 13.4% increase in this item, in addition to the carry over of the salary adjustment throughout 2022 of 10% in November 2021 in Brazil.

In 4Q22, a formal program to increase efficiency was initiated, focusing on the rationalization of structures and processes, with a consequent reduction in expenses. Given the investments made in automation over the last few years, adjustments were made to CVC Corp's management structure, part carried out in 4Q22 and part in January/23. This efficiency program will continue throughout 2023, focusing mainly on operational processes/activities.

Other Operating Income/Expenses registered a positive amount of R$ 73.0 million, mainly composed of

1. reversal of non-materialized provisions arising from past acquisitions, (ii) revenues from incentives for air ticket distributors and partially offset by (iii) ) expenses with refunds and cancellations. In 4Q21, this item had recorded a negative amount, mainly due to expenses incurred by the discontinuation of the operations of ITA Airline. In 2022, this item recorded a positive amount of R$96.7 million, mainly due to the effects mentioned in 4Q22, in particular incentives for air ticket distributors, as a result of the recovery of Confirmed Reservations throughout the year.