CBAV3

Companhia Brasileira de Alumínio - CBA is an aluminum producer with integrated operations across the entire value chain, from bauxite mining to the manufacture of primary and processed products, as well as recycling activities and electric power generation. Established in 1941, the company began operations with the Poços de Caldas Mining Unit, in Minas Gerais, to supply the first plant installed at the Rodovalho farm in the then municipality of Mairinque (SP), now Alumínio (SP). The company’s official inauguration took place in 1955, with an integrated industrial complex that already brought together, in a single location, bauxite processing and the production of primary aluminum and processed products. Over the following decades, CBA consolidated itself as one of the main players in the aluminum industry in Brazil, having held, in 1978, a significant share of national production and contributing to the organization of the sector through the founding of the Brazilian Aluminum Association (ABAL) in 1970. Its shares are traded on B3 under the ticker CBAV3.

Since its early decades of operation, Companhia Brasileira de Alumínio has structured a verticalized business model that combines mining, alumina refining, smelting and rolling in an integrated chain. The company is recognized as the only fully integrated aluminum company in Brazil, operating from bauxite extraction at its own units through to the delivery of a broad portfolio of primary products, processed products and customized aluminum solutions. This integration also includes self-generation of electricity, with a group of hydropower plants and wind assets dedicated mostly to supplying its industrial operations. CBA is controlled by Votorantim S.A., a privately held Brazilian holding company diversified in building materials, mining and metallurgy, renewable energy and other segments, which places CBA within a large-scale business group with a long-term strategic outlook.

CBA’s core activities include bauxite mining, alumina refining, primary aluminum production and the manufacture of higher value-added processed products, as well as recycling of aluminum scrap and commercialization of surplus energy. In the aluminum segment, the company produces ingots, liquid aluminum, billets, wire rods, caster coils and slabs, which make up the primary products stage, concentrated at the Alumínio (SP) industrial unit. Using these inputs, the company manufactures rolled sheets and plates, as well as extruded profiles, which serve a wide range of industrial and consumer applications. CBA also maintains trading operations for ingots, and sales of bauxite, alumina and hydrate in volumes exceeding its internal demand, in addition to operating scrap conversion (tolling) services, which reinforce its position in the aluminum value chain.

In the processed products space, Companhia Brasileira de Alumínio develops sheets and plates intended mainly for the packaging, construction, transportation, consumer goods, machinery and equipment, refrigeration and air-conditioning systems industries. The plates, rolled from caster coils or cast slabs, can reach large thicknesses and are used in bus and van side panels, household utensils, industrial and architectural cladding, as well as commercial signage. Aluminum foil, in turn, is widely used in aseptic cartons for milk and juices, flexible packaging such as stand-up pouches, household rolls and disposable trays, as well as in heat exchangers and automotive and refrigeration components. The extruded profiles produced from the company’s own billets are directed mainly to the construction market, for windows and doors, and to the transportation market, in structural vehicle applications. The company also operates solution and service centers that work in co-engineering with customers to develop customized parts, components and multicomponent kits.

CBA’s production structure is based on an integrated chain of industrial and mining assets. The company has three bauxite mining units, located in Barro Alto (GO), Zona da Mata (MG) and Poços de Caldas (MG), with resources sufficient to ensure self-sufficiency in ore for a period of more than two decades. The bauxite is shipped by rail to the Alumínio (SP) plant, which houses alumina refining, primary aluminum production and a significant portion of rolling and extrusion. In addition, CBA operates the Itapissuma (PE) unit, dedicated to rolled sheets and plates; Metalex in Araçariguama (SP), specialized in scrap recycling and billet production; and Alux do Brasil in Nova Odessa (SP), a producer of secondary aluminum alloys. Recycling centers in Araçariguama and São José do Rio Preto (SP) were set up to expand the collection and processing of post-consumer scrap, including obsolete materials from domestic and foreign markets, strengthening feedstock supply to the smelting and rolling units.

The market served by Companhia Brasileira de Alumínio is diversified and composed of sectors with growth potential linked, among other factors, to the decarbonization of the economy and the replacement of more carbon-intensive materials. The company supplies aluminum and related solutions to the construction, packaging, transportation, automotive, wire and cable, consumer goods and other industrial chains. No single customer accounts for more than 10% of net revenue, resulting in a broad customer base and reduced commercial concentration risk. Most of CBA’s aluminum sales are concentrated in Brazil’s Southeast region, the country’s main consumer hub, leveraging the strategic location of the Alumínio (SP) plant in relation to the mines and industrial centers. The company also carries out export operations for aluminum products and imports scrap, although a breakdown of revenue by country was not highlighted in the extract presented.

In addition to aluminum, the company operates an energy segment dedicated to managing and commercializing surplus electricity generated by its portfolio of generation assets. CBA directly or indirectly holds concessions for hydropower plants for self-production and independent power production, located mainly in the South, Southeast and Center-West regions, totaling approximately 1.4 GW of adjusted installed renewable capacity according to its stake, complemented by wind farms acquired in 2021, bringing total capacity to around 1.6 GW. The energy generated is primarily consumed in aluminum operations, with the surplus sold in the free market through the energy segment, while the power supplied internally to the aluminum segment is eliminated on consolidation. This structure reduces the company’s exposure to electricity price volatility—a critical input for aluminum production—and contributes to cost competitiveness compared to the global industry average.

Companhia Brasileira de Alumínio’s operations are subject to a robust regulatory environment, particularly Brazilian mining legislation and power sector rules. In mining, the company operates under the authorization and concession regime set out in the Mining Code and associated regulations, with the National Mining Agency (ANM) and the Ministry of Mines and Energy (MME) as the main authorities responsible for granting exploration and mining rights, overseeing operations, worker and community safety, and requiring environmental reclamation of mined areas. Mining concessions are granted for an indefinite term, subject to compliance with legal obligations, payment of royalties and sectoral fees, execution of approved plans and compliance with environmental legislation. In power generation, CBA’s plants operate under concessions granted by the federal government, with defined terms, the possibility of renewal and oversight by regulators such as the Brazilian Electricity Regulatory Agency (ANEEL) and the MME itself.

Environmental, social and governance aspects play a central role in Companhia Brasileira de Alumínio’s strategy. The company operates with a 100% renewable generation portfolio based on its hydro and wind assets, uses biomass boilers in its alumina refinery and invests in technologies to reduce emissions in potrooms, such as the Green Soderberg project, which modernizes electrolytic feeding and reduces greenhouse gas, particulate matter and fluorine emissions. In mining, CBA rehabilitates mined areas, returning land to surface owners with productivity and fertility conditions comparable to or better than the original. The company is certified by the Aluminum Stewardship Initiative (ASI) under performance and chain-of-custody standards, is a signatory to the UN Global Compact and takes part in corporate initiatives focused on climate, transparency and anti-corruption. CBA is also included in sustainability indices on B3, such as ISE B3 and IDIVERSA B3, and holds relevant ESG ratings in international assessments, aligning its environmental, social and governance risk management practices with its positioning as a low-carbon aluminum producer.

CBA further reinforces its social and governance commitments through initiatives focused on diversity, employee health and well-being, participation in business leadership movements aligned with the UN Sustainable Development Goals (SDGs), and projects for the conservation and sustainable use of biomes, such as Legado das Águas, the largest private Atlantic Forest reserve in the country, and Legado Verdes do Cerrado, the first Sustainable Development Reserve in that biome. Taken together, its integrated production chain, control by Votorantim, renewable energy portfolio and international certifications position Companhia Brasileira de Alumínio - CBA, issuer of CBAV3 shares on B3, as a key player in the aluminum industry and in Brazil’s decarbonization and circular economy agenda.