EPAR3

Embpar Participações S.A. is a Brazilian publicly held company, with common shares traded on B3 under the ticker EPAR3. The company has its origins in Grupo Battistella, founded in 1949 by Emílio Fiorentino Battistella in the city of Lages, in the state of Santa Catarina, starting from the establishment of a sawmill that bore the founder’s name. Over the following decades, the group expanded into different areas, becoming, as early as the 1950s, one of the first companies in Brazil to represent the Scania brand. In the 1960s, 1970s and 1980s, the conglomerate diversified its activities, entering segments such as hospitality, cattle ranching and timber exploitation, among other related businesses.

From the 1990s and into the 2000s, the group’s operations underwent a process of strategic reorientation, focusing on returning to its roots in the timber segment and the resale of vehicles and services associated with the Scania brand. This decision involved discontinuing operations in sectors considered non-core compared to the two original lines of business. In June 2016, Cotrasa Veículos e Serviços Ltda. was created, structured with the objective of absorbing the operations of reselling Scania parts and vehicles and providing workshop services, giving greater independence and specialization to this specific business within the group.

In April 2021, the then group company had its corporate name changed to Embpar Participações S.A., in line with the investment holding role it began to play more clearly. The name change, approved at shareholders’ meetings, reinforced the company’s vocation to hold and manage equity interests in different operating companies of the group, instead of concentrating industrial and commercial operations directly within its own structure. In this context, Embpar Participações consolidated itself as the entity responsible for organizing and directing the asset portfolio, including industrial and real estate businesses, as well as those related to the distribution and services of heavy vehicles.

Embpar Participações maintains a significant presence in the forestry and timber segment through companies such as Battistella Indústria e Comércio Ltda. This arm of operations is dedicated to the processing and commercialization of wood and its derivatives, serving both the domestic and foreign markets, in addition to leasing real estate assets linked to the operation. In the productive sphere, the wood derivatives sector processes and industrializes products mainly targeted at the furniture and construction sectors, supplying inputs for furniture manufacturers and for structural and finishing applications in construction projects. The technical expertise and experience accumulated over more than seven decades of activity have contributed to the insertion of this line of business into demanding markets in Brazil and abroad.

In addition to the forestry and industrial segment, Embpar Participações has structured specific vehicles for its real estate and heavy vehicle dealership businesses. In June 2021, Jaspe Imóveis S.A. was created with the objective of absorbing all the properties of the subsidiaries and engaging in property management for the company, organizing asset management and the economic exploitation of these assets. In June 2023, Cotrasa Participações S.A. was formed, intended to control the activities of heavy vehicle dealerships, centralizing equity stakes in this line of business. In September 2023, Cotrasa Participações S.A. came to hold the stake that Embpar had in Cotrasa Veículos e Serviços Ltda., reinforcing the corporate separation between Embpar as a holding company and the operating companies involved in vehicle distribution and automotive services.

The activities of Embpar Participações and its subsidiaries are concentrated within Brazilian territory, with no revenue generated from other countries. The geographic scope described is focused on the Brazilian market, originating in the state of Santa Catarina and expanding from that base. The emphasis on domestic operations means that the company and its subsidiaries are not subject to regulation by other countries, concentrating their regulatory relationships at municipal, state and federal levels in Brazil. This national focus is also reflected in the revenue structure and competitive positioning, aimed at serving local industrial chains, especially in the furniture, construction and automotive services segments related to heavy vehicles.

From a regulatory standpoint, Embpar Participações and its subsidiaries operate in activities that require specific licenses and authorizations, particularly in the environmental field due to the exploitation and industrialization of wood and derivatives. The company keeps the environmental licenses required for its operations up to date, with the monitoring of expiry dates and renewals overseen by the legal department and executive management. Each business unit monitors changes in environmental legislation applicable to its area of operation, adjusting processes to fully comply with the regulations in force. There is no indication of any material dependence on patents, trademarks, licenses, concessions or franchises that are critical to the development of activities, beyond the usual authorizations inherent to the segments in which it operates.

Regarding environmental, social and governance practices, Embpar Participações adopts a formal environmental policy focused on conserving natural resources, maintaining biodiversity, preventing pollution and the continuous improvement of operational processes, with an emphasis on social development and environmental preservation. The policy establishes commitments such as full compliance with applicable laws and regulations, the identification of environmental risks and opportunities related to current and developing businesses, and the implementation of environmental management programs in all units. Implementation of this policy takes place through environmental audits, formal management systems, analysis of relationships with stakeholders and participation in external environmental control mechanisms involving institutional, governmental and non-governmental entities. The company, however, reports that it does not publish specific social and environmental reports, although its annual financial statements are independently audited and made available on its Investor Relations website, complementing information relevant to the capital markets on B3.

As an investment holding company with industrial and forestry origins, Embpar Participações S.A. combines a portfolio that integrates forestry-based assets, corporate real estate and heavy vehicle dealership operations through its subsidiaries. The corporate structure allows the company to organize its businesses into specialized units while consolidating results at the publicly traded company level. The trading of its EPAR3 shares on B3 places Embpar in the Brazilian capital markets, providing access to investors interested in companies linked to the wood, construction, furniture, real estate and heavy vehicle distribution chains, within a corporate governance framework that involves independent auditing of financial statements and compliance with regulatory practices applicable to listed companies.