FRIO3

Metalfrio Solutions S.A. is a Brazilian company founded in 1960, originally focused on producing components for refrigeration systems and quickly moving into the development of complete solutions aimed at beverage and ice cream manufacturers. Over the following decades, the company went through different ownership cycles, including the period in which it was part of Continental 2001 and, later, the German group Bosch Siemens Hausgeräte (BSH), when it received significant investments in industrial modernization and environmental practices, becoming one of the pioneers in Latin America in industrial projects focused on environmentally oriented refrigeration. In 2001, the operation was carved out into a new corporate structure, Metalfrio Solutions Ltda., laying the groundwork for its phase as an independent company. In 2007, after being converted into a corporation (sociedade anônima), the company carried out its initial public offering, and its common shares, under the ticker FRIO3, began trading on B3 – Brasil, Bolsa, Balcão.

Metalfrio Solutions’ recent trajectory has been marked by a process of internationalization and consolidation in the commercial plug-in refrigeration segment for points of sale. The company made acquisitions and established subsidiaries in strategic markets such as Turkey, Russia, Mexico, Bolivia, Nigeria and Argentina, and also acquired assets in Denmark and the United States to strengthen its global presence. Among the key transactions are its entry into the Mexican market through Refrigeración Nieto and Enerfreezer, the acquisition of the Senocak/Klimasan group in Turkey, which also operates in Ukraine and Russia, and the creation of its own logistics structure through Begur Transporte Rodoviário e Logístico Ltda., later expanded by the purchase of 3L Locações e Serviços S.A. More recently, the company has adjusted its international portfolio, terminating operations in Denmark and Nigeria, while strengthening its presence in Central Asia through a production partnership with Artel Electronics in Uzbekistan, involving the creation of LLC Klimasan Coolers Manufacturing for sales and distribution in the region.

Metalfrio Solutions’ business model is focused on technological refrigeration solutions for points of sale (POS) of major global consumer brands, especially in the beverages, ice cream and chilled or frozen foods segments. The company operates as one of the world’s leading players in commercial plug-in coolers, concentrating on equipment classified as Ice Cold Merchandiser (ICM), which includes vertical and horizontal refrigerators and freezers used directly at points of display to the end consumer. Its operations are organized into two major segments: products and services. The products segment comprises the development, manufacturing, distribution and sale of plug-in coolers and chest freezers, often customized in design, logo and visual identity to integrate with clients’ marketing strategies. The services segment brings together a set of value-added solutions that includes maintenance, technical assistance, sale of spare parts, asset management, equipment refurbishment, logistics services and equipment leasing, thereby increasing the share of recurring revenue in the company’s structure.

From a revenue standpoint, the products segment represents most of Metalfrio Solutions’ consolidated net sales. In 2024, products accounted for about 80.7% of net revenue, while services represented 19.3%. Even so, profitability shows a different dynamic between the segments: the gross margin on services is substantially higher than that of products, reflecting the more knowledge-intensive nature of technical expertise, asset management and specialized support. Over the years, the company has developed a services platform under the Life Cycle brand, dedicated to the comprehensive management of approximately 1.5 million pieces of equipment in South America and a significant additional volume in Central America, North America and the EMEA region. This platform coordinates more than 75,000 service orders per month through around one thousand technicians and hundreds of authorized service centers, supported by centralized systems, its own app and a call center, which reinforces the proposition of offering complete refrigeration solutions, from manufacturing through the full life cycle of the equipment in the field.

Metalfrio Solutions’ customer base consists mainly of large global manufacturers of chilled or frozen beverages and foods, which use commercial refrigerators both to preserve their products and to display and promote their brands at the point of sale. The company supplies multinational groups in the beer, soft drink, ice cream and frozen foods sectors, with a highly diversified revenue base and, in 2024, did not report any individual customers accounting for more than 10% of total net revenue. Metalfrio’s equipment is installed in supermarkets, bars, restaurants, convenience stores, bakeries and other retail establishments that sell chilled or frozen products, creating a high degree of correlation with the global dynamics of the food and beverage industry, the expansion of retail channels and the renewal of equipment fleets. The offering of asset management and refurbishment services also meets these large corporations’ needs to optimize the useful life and standardization of their equipment bases distributed across multiple geographies.

Metalfrio Solutions’ geographical footprint is highly diversified. The company operates four main manufacturing plants: one unit in Brazil, located in Três Lagoas (Mato Grosso do Sul); one in Turkey, in Manisa; one in Russia, in Kaliningrad; and another in Mexico, in Celaya. In addition to these production hubs, it maintains commercial offices in Poland, Nigeria, Ukraine and the United States, and a dedicated services office in Brazil. This structure enables coordinated operations in three major regions: North and Central America, Latin America and EMEA, with the capacity to serve more than 100 countries. The international expansion strategy seeks to align the location of industrial and service operations with the markets showing the strongest growth in consumption of chilled foods and beverages, reducing exposure to country-specific cycles and enabling scale gains, production flexibility and logistical proximity to global customers.

Metalfrio Solutions operates in a sector that is sensitive to regulatory standards concerning safety, energy efficiency, occupational health and the environment. Its operations are subject to zoning requirements, municipal operating licenses, fire department approvals and environmental permits in the various jurisdictions where it operates, with the need for periodic renewal and exposure to penalties in the event of non-compliance. The company adopts management systems aligned with ISO 14001 to monitor compliance with environmental and occupational health and safety legislation, and is subject to periodic independent audits. In its production process, it uses in-house laboratories for quality control of polyurethane foam, thermal insulation and energy efficiency, performing performance, durability and electrical safety tests on 100% of the equipment produced, with additional samples subjected to extreme temperature and humidity conditions to ensure compliance with international standards.

In the environmental and sustainability arena, Metalfrio Solutions has developed structural initiatives to reduce environmental impacts throughout its history. In 1998, it completely eliminated the use of CFCs in products and facilities, anticipating the transition to gases that are less harmful to the ozone layer. Starting in 2008, it incorporated LED lighting into its equipment, reducing energy consumption and the need to dispose of mercury-containing fluorescent lamps, and expanded the use of this technology to work environments as well. In 2010, it launched the Metalfrio Next line, focused on sharply reducing direct greenhouse gas emissions and energy consumption in its equipment. The Três Lagoas plant obtained ISO 14001 certification in 2019 and has been recognized with the "Selo Verde – Ecoeficiência" (Green Seal – Eco-efficiency) in the state of Mato Grosso do Sul since 2015, evidencing the integration of eco-efficiency practices into operational management. The company is also frequently subject to social responsibility questionnaires and audits by its main customers, which contributes to its ongoing alignment with international environmental, social and governance standards.

In the capital markets, Metalfrio Solutions has been pursuing financial adjustments and capital strengthening to support its global operating structure. In 2024, it completed a significant capital increase, approved at an extraordinary shareholders’ meeting at the end of 2023 and ratified by the board of directors, with the stated goal of seeking a more balanced capital structure. The contribution, carried out through the issuance of new FRIO3 common shares at a set issue price, reinforced the company’s equity by a substantial amount. The corporate strategy combines portfolio rationalization of subsidiaries, investments in operational efficiency and expansion of recurring service offerings, while seeking to position the company to capture structural growth in the consumption of chilled beverages and foods in both developed and emerging markets, maintaining its focus on commercial refrigeration for points of sale as its core value driver.