INEP3

Inepar S.A. – Indústria e Construções, issuer of the INEP3 and INEP4 shares traded on B3, has a trajectory that dates back to 1953, when it began operations as ENCO – Engenharia e Comércio. In 1968 INELCO – Indústria Elétrica e Comércio was created, focused on the manufacture and assembly of low-voltage electrical panels, motor control centers and medium-voltage cubicles for industry. In 1971, INELCO was renamed INEPAR – Indústrias Eletromecânicas do Paraná Ltda., and in 1976 it was transformed into a corporation, with ENCO being merged into Inepar S.A. – Indústria e Construções. Over the following decades, the company structured alliances with major international and domestic groups, carried out acquisitions and corporate reorganizations, always oriented toward expanding its presence in infrastructure, energy and capital goods. As of 2004, its operations became heavily concentrated in its subsidiary IESA Projetos, Equipamentos e Montagens S.A., consolidating a significant engineering and manufacturing hub in Araraquara (SP).

Historically, Inepar expanded its presence in the energy sector, starting to offer equipment and integrated systems for power generation, transmission and distribution. In addition to its energy operations, it developed activities in telecommunications and industrial infrastructure, restructuring itself at different times to concentrate efforts on businesses considered to have higher added value. The company’s corporate purpose covers the manufacture, commercialization, design and supply of capital goods, equipment, systems and services destined for the electric power chain and for the implementation and expansion of telecommunications systems. Additionally, it includes civil, electrical, hydraulic and telecommunications works, transmission lines, networks and substations, as well as rail and road signaling systems, automation and a broad range of consulting engineering services, economic studies, project management and construction supervision.

Inepar’s business model is essentially focused on large, made-to-order projects, combining engineering, equipment supply and construction and assembly services. The company and its subsidiaries operate across the entire chain of an infrastructure or industrial project, from engineering studies and design to industrial assembly, commissioning and technical assistance. Its operating subsidiary IESA Projetos, Equipamentos e Montagens S.A. carries out studies, design, construction, maintenance and assembly for infrastructure and industrial sectors such as steel, mining, metallurgy, ports, metro-rail, basic and environmental sanitation, pulp and paper, telecommunications, and power distribution and transmission. It also manufactures and supplies machinery and equipment, steel structures, capacitors, capacitor banks, harmonic filters, equipment for power quality and energy efficiency, in addition to working on transmission lines and thermal and hydroelectric power plants. Other companies in the group, such as Inepar Equipamentos e Montagens S.A., IESA Óleo & Gás S.A. and affiliates in the transport and infrastructure area, broaden the scope of operations in consulting engineering, industrial works and projects related to oil and gas.

From the standpoint of operating segments, Inepar structures its activities into three main fronts: Generation & Equipment, Construction & Assembly, and Oil & Gas. In the Generation & Equipment segment, its subsidiary IESA maintains an industrial complex in Araraquara (SP) and operates specialized divisions. In the Material Handling and Mining division, it designs and manufactures bridge and gantry cranes, port cranes, ship loading and unloading machines and mining equipment such as stackers and conveyors, with a track record of supplying thousands of bridge cranes in Brazil and abroad. In the Process Equipment division, it supplies pressure vessels and towers, reactors, process columns, coke drums, deaerators, spheres, heat exchangers, storage tanks and other equipment aimed mainly at the oil, gas, chemical, petrochemical, pulp and paper, cement, brewing and food industries. In the Hydromechanical Equipment division, it works on projects for hydroelectric plants and power generation ventures, producing gates, penstocks, trash racks, bus ducts and servomotors, having taken part in projects such as Campos Novos, Ponte de Pedra, São Salvador and Estreito.

The Construction & Assembly segment is geared toward infrastructure, sanitation and transport projects, with an emphasis on the Metro Transport division. In this area, the company works on the overhaul and manufacture of passenger trains, with contracts already executed for operators such as CPTM (SP), Central (RJ) and metro systems in São Paulo, Rio de Janeiro and Brasília. The company’s industrial structure allows for direct rail access, which facilitates operations related to metro-rail systems. In addition, through subsidiaries and affiliates, Inepar develops projects for rail and road signaling systems, civil works related to bridges, roads and viaducts, and solutions for road traffic control and urban infrastructure. It also provides consulting services, inspection of road works, and manufacture or modernization of rolling stock, reinforcing its presence in urban mobility and logistics projects.

In the Oil & Gas segment, operations are conducted mainly through its subsidiary IESA Óleo & Gás S.A. and its holdings. This company is dedicated to carrying out studies, engineering design, construction, maintenance, assembly and technical assistance for onshore and offshore projects in the oil and gas, chemical and petrochemical areas. The scope ranges from civil construction applied to offshore and onshore facilities to the maintenance, modification and operation of oil and gas exploration and processing systems, as well as nuclear thermal power plant projects. IESA is able to provide solutions under EPC (Engineering, Procurement and Construction) contracts, integrating engineering, procurement and construction in large-scale contracts. Its product portfolio also includes specific equipment for oil exploration in deepwater fields, such as blasting bases (Bajas), bell mouths, integrated skids and other process equipment.

Inepar’s client base is made up of large companies in the oil, energy, steel and infrastructure sectors. Among the main clients mentioned in its reference form are Petrobras, Norte Energia, ArcelorMittal do Brasil, Rio Canoas Energia, Rio Paraná Energia, industrial companies and technology suppliers in renewable energy. This reinforces the corporate nature and long-cycle project profile of the company, with orders maturing between two and four years, often linked to large energy or industrial infrastructure developments. The company operates primarily in the Brazilian market, with no material revenues from abroad in the reported period, and is not subject to foreign regulation, although its projects often involve international engineering and quality technical standards.

From a regulatory and environmental-social standpoint, the activities of Inepar and its subsidiaries are subject to Brazilian environmental legislation at the federal, state and municipal levels. The company states that it seeks to carry out its operations in compliance with environmental regulations, including obtaining the licenses and permits required by the competent agencies. Its subsidiary IESA Projetos, Equipamentos e Montagens S.A. has a formal environmental policy, in which it acknowledges its responsibility for quality of life and commits to minimizing environmental impacts arising from its processes. This policy emphasizes the rational use of natural and energy resources, pollution prevention, continuous improvement of the Environmental Management System, transparency in communication on environment, safety and occupational health, as well as employee awareness. For individual investors following INEP3 and INEP4 shares on B3, Inepar therefore presents itself as an industrial and engineering group focused on complex projects in energy, oil and gas, transport and infrastructure, with a strong component of capital goods and highly specialized technical services.