MRS Logística S A : Earnings Releases 2Q22

Quarterly Results - 2Q22

Quarterly Results - 2Q22

Main Highlights

Rio de Janeiro, August 10, 2022 - MRS Logística S.A. announces its results for the second quarter 2022. The Company's Financial Statements, duly reviewed by the independent auditors, are presented in thousands of Brazilian reais (R$ thousand), in accordance with the international accounting standard - IFRS (International Financial Reporting Standards) - and in accordance with the accounting practices adopted in Brazil.

Volume Transported

General Cargo

18.2

1. of Tons +4.1%*

Leverage Indicator

1.13x

+0.55x*

Total Volume Transported

In millions of TU

46.0	45.8
	37.0

Operating Revenues

Liquid

R$ 1,444.4MM

+24.2%*

EBITDA

R$ 770.3MM

-8.1%*

EBITDA1

In millions of reals

2,559.8 2,531.3 2,463.0

2Q21	1Q22	2Q22	2Q21	1Q22	2Q22
			¹ accumulated 12 months

*The comparisons refer to the results 2Q21

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Quarterly Results - 2Q22

Summary
HIGHLIGHTS .....................................................................................................................................................................................	4
OPERATIONAL PERFORMANCE......................................................................................................................................................	5
Mining .....................................................................................................................................................................................	6
General Cargo ........................................................................................................................................................................	7
ECONOMIC-FINANCIAL PERFORMANCE .......................................................................................................................................	11
EBITDA....................................................................................................................................................................................	12
Net Profit...............................................................................................................................................................................	13
Indebtedness .......................................................................................................................................................................	14
Rating.....................................................................................................................................................................................	16
SUBSEQUENT EVENT............................................................................................................................................................	16
CASH FLOW STATEMENT................................................................................................................................................................	17
ESG AGENDA...................................................................................................................................................................................	18
INVESTOR RELATIONS ...................................................................................................................................................................	21
ANNEXES ........................................................................................................................................................................................	22
Annex I - Operational Chart and Graph.........................................................................................................................	22
Annex II - Income Statement ..........................................................................................................................................	23
Annex III Balance Sheet.................................................................................................................................................	24
Annex IV - Investment Chart ...........................................................................................................................................	25

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Quarterly Results - 2Q22

HIGHLIGHTS

Financial and Operational Results	2Q22	2Q21	2Q22 x 2Q21	1Q22	2Q22 x 1Q22	1S22	1S21	1S22 x 1S21
Transported Volume (thousands tons)	45,846	46,020	-0.4%	37,026	23.8%	82,872	84,544	-2.0%
Gross Revenues (R$ million)	1,554.5	1,254.7	23.9%	1,200.2	29.5%	2,754.7	2,304.3	19.5%
Net Revenues (R$ million)	1,444.4	1,163.3	24.2%	1,099.6	31.4%	2,544.0	2,128.3	19.5%
EBITDA (R$ million)	770.3	838.6	-8.1%	554.0	39.0%	1,324.3	1,327	-0.2%
EBITDA Margin ¹ (%)	53.3%	72.1%	-18.8pp	50.4%	2.9pp	52.1%	62.4%	-10.3pp
Net Profit ¹ (R$ million)	206.9	420.4	-50.8%	100.4	106.1%	307.3	496	-38.0%
Gross Debt (R$ million)	4,018.7	2,449.2	64.1%	4,036.6	-0.4%	4,018.7	2,449.2	64.1%
Net Debt (R$ million)	2,792.2	1,497.4	86.5%	2,792.3	0.0%	2,792.2	1,497	86.5%
Net Debt/EBITDA ¹ (x)	1.13x	0.58x	0.55x	1.10x	0.03x	1.13x	0.58x	0.55x
¹ Last 12 months (unadjusted result, that is, considering the non-recurring events).

Throughout 2022, the national industry and the companies linked to the global supply chains keep facing a challenging context. Difficult financial situation, exchange volatility and demand oscillations have demanded from the companies even more. The downturn risks of the Chinese economy (with restrictions related to the

On 07/28/2022, MRS signed the Term of Addendum regarding the Renewal of its Concession, which will be in force until 2056. The planned investments, spread throughout the concession period, are approximately R$ 11 billion, considering base date May 2022.

MRS highlights that the General Cargo transport segment presented a historic record, reaching 18.2Mt of transport volume in 2Q22. This result was impacted by the pulp, civil construction and other segments, which, together, increased by 32.6%. Although the total volume transported by the Company dropped by 0.4%,

MRS ended 2Q22 with Net Revenues of R$1,444.4 million, increase of R$344.8 million compared to 1Q22. The transport segment that most contributed to the Company's revenues is the Iron Ore segment, which closed the quarter with 27.1Mt transported volume, followed by the agricultural products segment, which closed 2Q22 with approximately 12.0Mt.

The Company's EBITDA amounted to R$770.3 million, increase of 39.0% compared to 1Q22.

MRS closes 2Q22 with Net Debt balance of R$2,792.2 million and Net Debt/EBITDA ratio of 1.13x.

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Quarterly Results - 2Q22

OPERATIONAL PERFORMANCE

MRS Logística mainly operates in the transport of inputs and products related to the steel industry, such as iron ore, coal and coke, both to serve the domestic market and for export, and in the transport of its own General Cargo and other railways, which includes agricultural commodities, steel products, containers, pulp, among others, in a 1,643 km railway grid, in the states of Minas Gerais, Rio de Janeiro and São Paulo, a region which concentrates about half of the Brazilian GDP.

In 2Q22, the total volume transported by the Company was 45.8Mt, increase of 23.8% compared to 1Q22. When comparing 2Q22 with 2Q21, the volume was 0.4% lower, mainly impacted by the drop in ore transport, which will be detailed further on.

The performance of the General Cargo transport was the best of all quarters in the history of MRS, reaching 18.2Mt transported volume in 2Q22, increase of 11.3% when compared to 1Q22 and 4.1% in relation to the same period of the previous year.

Transported Volume	2Q22	2Q21	2Q22 x 2Q21	1Q22	2Q22 x 1Q22	1S22	1S21	1S22 x 1S21
Thousand tons
Mining	27,661	28,558	-3.1%	20,686	33.7%	48,347	53,512	-9.7%
Iron Ore	27,122	27,915	-2.8%	20,045	35.3%	47,167	52,152	-9.6%
Export	23,606	24,086	-2.0%	16,574	42.4%	40,180	44,684	-10.1%
Domestic Market	3,516	3,829	-8.2%	3,471	1.3%	6,987	7,467	-6.4%
Coal and Coke	539	643¹	-16.1%	641	-15.8%	1,180	1,360¹	-13.3%
General Cargo	18,185	17,463	4.1%	16,340	11.3%	34,525	31,032	11.3%
Agricultural Products	11,963	12,026	-0.5%	10,678	12.0%	22,641	20,393	11.0%
Steel Products	1,721	1,816	-5.2%	1,486	15.8%	3,207	3,622	-11.5%
Pulp	1,365	866	57.7%	1,256	8.6%	2,621	1,714	52.9%
Container	507	609	-16.7%	492	3.2%	999	1,149	-13.1%
Construction	629	473	33.1%	515	22.2%	1,144	975	17.3%
Others	2,000	1,673 ¹	19.5%	1,913	4.5%	3,912	3,178¹	23.1%
Total	45,846	46,020	-0.4%	37,026	23.8%	82,872	84,544	-2.0%

1 2022 reclassification data

Quartely Results - Transported Volume

		in million	of TU
	+12.3%			-0.4%
45.2	44.4	46.0	47.2		45.8
40.8		38.5			38.2	37.0

29.4

1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q
	2020				2021				2022
	2019

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