KEPL3

Kepler Weber S.A. is a company with almost a century of history, originating in 1925 from a small blacksmith shop founded by brothers Otto Kepler and Adolfo Kepler Junior. Over the decades, the company diversified its production, manufacturing lard, tobacco and vegetable oil presses, honey centrifuges, and truck and bus bodies, until consolidating its focus on agribusiness solutions. In 1939, with the entry of Paulo Otto Weber as a partner, “Kepler Irmãos & Weber” was created, which in 1963 was transformed into a corporation, adopting the name Kepler Weber S/A - Indústria, Comércio, Importação e Exportação. From the 1970s onward, the company began to invest heavily in grain storage, exporting to Paraguay, opening a new manufacturing park in Panambi (RS) and launching lines of cleaning machines and dryers that defined its role in the post-harvest segment.

Throughout its history, Kepler Weber has expanded the scope and complexity of its business. In 1988, it launched a new line of metal silos with capacities of up to 13,000 tons, which impacted the storage market. In 1992, it entered the ports and terminals segment through a project at the Port of Santos, starting to operate as well in bulk handling within logistics infrastructure. The shareholding structure was revamped in 1996 with the entry of institutional investors such as BB Banco de Investimento, PREVI, Aerus and SERPROS, and in 2007 there was a new capital restructuring, raising the free float from 4% to 65%. The 2000s included the acquisition and subsequent merger of Kepler Weber Inox, focused on equipment for dairy cattle, and the opening of the Campo Grande (MS) industrial unit in 2004, which doubled the group’s manufacturing capacity.

Currently, Kepler Weber, headquartered in São Paulo, operates in the agribusiness sector specializing in complete solutions for grain storage and handling across the entire post-harvest chain, from origination to export operations. The company’s common shares are traded on B3 under the ticker KEPL3 and, since July 26, 2023, have been listed on the Novo Mercado segment, which requires higher levels of corporate governance. The production structure is concentrated in the subsidiary Kepler Weber Industrial S.A., which manufactures and sells grain storage and conservation systems such as silos, dryers, cleaning machines, elevators, conveyors, components and spare parts. Production is predominantly made to order, managed by an MRP system, with a plant layout aligned with the Lean philosophy and units specialized by product line, which allows fine-tuned adjustments to demand for customized projects.

The business model is organized into five operating segments: Farms, Agribusinesses, Ports and Terminals, Replacement and Services, and International Business. In Farms, Kepler Weber offers storage, processing, drying and handling systems aimed at rural producers of all sizes, with lines of storage silos, dryers and cleaning and pre-cleaning machines. In Agribusinesses, the company develops complete and customized projects for cooperatives, grain traders, oil industries, corn ethanol plants, rice mills, wheat mills, coffee processors and seed companies, seeking post-harvest and processing solutions with a focus on cost-effectiveness. In the Ports and Terminals segment, it supplies high-capacity and robust equipment and structures for seaports and river ports, multimodal transshipment stations and solid bulk terminals, designed to operate flows of up to 3,000 tons and capacities of up to 30,000 tons.

The Replacement and Services area is an important vector of recurring revenue, supported by nine distribution centers strategically located in key agricultural regions of Brazil, such as Rio Grande do Sul, Paraná, Goiás, Mato Grosso, Mato Grosso do Sul, Maranhão, Pará and Bahia. In this front, Kepler Weber sells spare parts, refurbishes equipment and offers technical assistance, seeking to ensure availability and agility in the maintenance of installed storage systems. The acquisition of Procer Automação, a company specialized in digital solutions for grain storage, reinforced this segment by incorporating automation and monitoring services and products. Recent innovations include the IoT Sync platform, launched in 2019 and focused on Industry 4.0 in the post-harvest stage, the more energy-efficient KW Max dryer, and the radar level sensor for silos, which allows precise measurement and real-time monitoring of stored volume.

Geographically, Kepler Weber combines a relevant position in the domestic market with a growing presence abroad. In 2024, the domestic market accounted for 86.59% of consolidated net operating revenue, while the foreign market represented 13.41%. South America is the main export destination, with 12.59% of total revenue, followed by Central America, Africa, Europe and Asia, in smaller proportions. The company presents itself as a leader in grain storage equipment in Brazil and South America, while expanding its operations in countries in Central America, Africa, Asia and Eastern Europe. The customer base is diversified and includes large cooperatives, trading companies, grain traders and rural producers of large, medium and small size, with no material concentration in a single client — none accounted for more than 10% of net revenue in 2023 and 2024.

From an operational standpoint, the company uses technology developed in-house, with installed capacity to process up to 77,000 tons of steel, having used around 80% of that capacity in 2024. The main input is galvanized steel, purchased from domestic suppliers such as Usiminas and Arcelor Mittal, as well as international players, which reduces dependence on a single provider. Distribution is structured through its own sales force and representatives, segmented by regions and business units, both in the domestic and foreign markets. As equipment is manufactured to order, logistics focuses on direct deliveries from the plants to customers’ facilities, predominantly by road, with occasional use of maritime transport and container stuffing at the plant for export.

Regarding regulation and ESG practices, Kepler Weber is subject to Brazilian labor, social security, environmental and tax legislation and securities regulations, in addition to obtaining the required operating licenses. The company and its subsidiary hold all required environmental licenses and work on waste reduction, promotion of recycling and effluent control, reporting no history of environmental penalties. The company maintains an Integrated Management System with ISO 9001, ISO 14001, ISO 45001 and OHSAS 18001 certifications, and has published a biennial Sustainability Report since 2012, following the guidelines of the Global Reporting Initiative (GRI). In 2023, it updated its materiality matrix based on consultation with more than 600 stakeholders and has carried out a greenhouse gas emissions inventory since 2022, based on the Brazilian GHG Protocol and ABNT NBR ISO 14064-1, initiating the implementation of decarbonization targets at its manufacturing units. These initiatives are relevant for investors monitoring the evolution of environmental, social and governance practices in companies with shares traded on B3, such as Kepler Weber.

From the investor’s perspective, it is worth noting that management considers all Kepler Weber operations as a single operating segment for resource allocation purposes, although it reports internally on the five business segments mentioned above. In 2024, consolidated net operating revenue was R$ 1.607 billion, with a predominance of sales to the domestic market and a higher share of exports compared with 2023. Gross results are monitored by segment, but operating expenses, financial result and taxes are managed on a consolidated basis. The typical seasonality of agribusiness also influences performance, with a higher concentration of deal closings in the second half of the year, when customers seek to receive equipment before the harvest. In this context, KEPL3 shares offer direct exposure to the investment cycle in storage and post-harvest infrastructure in Brazil and other agricultural markets, with the particular feature of combining the manufacture of capital goods, replacement services and digital solutions focused on agribusiness.