MWET4

Wetzel S.A. is a Brazilian industrial company founded on April 11, 1932, originally under the corporate name Schmidt, Wetzel & Cia., with an initial focus on the manufacture of brass faucets and valves. From the 1950s onward, the company expanded its production scope by entering the manufacture of aluminum parts, aimed mainly at the installation, transmission, and distribution of electric power. In 1966, it became a corporation (sociedade anônima), adopting the name Metalúrgica Wetzel S.A., and in 1984 it went public, with its shares starting to trade on the market. The corporate trajectory includes acquisitions, mergers, and reorganizations, such as the purchase of control of Metalúrgica Douat S.A. in 1988 and the subsequent merger of Wetzel Fundição de Ferro S.A. in 1998, when the company adopted the name Wetzel S.A., the current corporate name under which the MWET3 and MWET4 stocks are traded on B3.

Since its inception, Wetzel has established itself as a metallurgical and materials transformation company, operating in components made of ferrous metals, non-ferrous metals, and plastics. The company directs its production to the power transmission, distribution, installation, and lighting chains, in addition to applications in various industrial sectors. Over time, it has formed strategic partnerships, such as joint ventures focused on the production of automotive filters and plastic parts for electrical applications, always aiming to complement its portfolio of industrial components. The company has invested in quality and management certifications such as ISO 9001, ISO TS 16949, IATF, and ISO 14001, reinforcing its positioning as a qualified supplier to industries with high technical requirements.

Wetzel’s business model is structured into two main units: the Aluminum Automotive Components Unit, known as Wetzel Automotiva, and the Electrical and Lighting Components Unit, called Wetzel Eletrotécnica. The Automotive unit focuses on the production of cast and machined aluminum parts for the supply chain of truck, bus, and light vehicle manufacturers, using high-pressure, low-pressure, and gravity casting processes, and supplying raw parts, machined parts, and assembled sets. Eletrotécnica operates in the manufacture of surface-mounted electrical installation materials in aluminum and PVC, industrial LED lighting, and solutions for classified areas with international certification, serving mainly construction projects, infrastructure, and industrial installations. The company’s net revenue is generated by these two segments – automotive and electrotechnical – and is disclosed on a consolidated basis, without margin breakdown by business unit.

In the automotive segment, Wetzel Automotiva concentrates its expertise in components with medium and high technical complexity, supported by a casting and machining industrial park of around 16,300 square meters. The production process includes casting parts with different weights and geometries, with the possibility of heat treatments according to customer specifications. The in-house laboratories have resources for testing mechanical properties, metallography, chemical composition analysis, crack inspection, three-dimensional measurement, leak testing, and radiography, among others, enabling the company to meet the requirements of manufacturers and system suppliers of light and heavy vehicles. Demand dynamics in this segment are directly linked to the performance of motor vehicle sales in the market, with seasonal impacts resulting from customers’ scheduled shutdowns, especially between December and January.

In the electrotechnical segment, Wetzel Eletrotécnica develops, produces, and markets a broad portfolio of electrical installation materials and industrial and commercial lighting, with in-house manufacturing and a focus on industrial, infrastructure, port, airport, and general civil construction applications. The product lines include surface-mounted installation materials in aluminum and PVC, luminaires and LED lighting systems aimed at industrial environments, and products for classified areas that require specific certifications due to explosion risks. The unit has in-house laboratories for quality testing, which supports the development of products in line with technical and regulatory standards. Sales of this line are carried out through a network of representatives with nationwide coverage, complemented by an in-house sales and technical consulting team.

Wetzel’s customer base is diversified in both operating segments. For the company as a whole, there is no individual customer responsible for more than 10% of total net revenue, although in each business unit there are customers that individually exceed that share. The physical distribution of products is carried out mainly by road transport for the domestic market and by sea transport for exports. In 2024, revenue from Brazil accounted for 99.72% of consolidated net revenue, totaling approximately R$ 278.99 million, while foreign sales accounted for 0.28%, around R$ 0.78 million, which reinforces the essentially domestic nature of the operation.

From a regulatory standpoint, Wetzel’s industrial activities require a set of licenses and authorizations at different levels of government. The company maintains operating environmental licenses issued by the Instituto do Meio Ambiente de Santa Catarina (Santa Catarina Environmental Institute), as well as concessions for water intake and disposal of treated effluents, authorizations for the use of certain chemical products controlled by the Brazilian Army and the Federal Police, location permits, and permissions for the receipt and final destination of waste. The power and natural gas suppliers that serve the company are subject to regulation by specific government agencies. In terms of intellectual property, the organization adopts a policy of protecting and renewing its trademarks, with registration of the “WETZEL” brand in several classes at the INPI, in Brazil and abroad, and maintenance of patents in accordance with applicable legal terms.

In the environmental, social, and governance field, Wetzel states that it incorporates practices aligned with the ESG agenda, although it does not yet publish an annual report specifically consolidating these indicators. The company maintains environmental management systems certified by ISO 14001:2015 at its industrial units, monitors indicators such as solid waste generation and energy consumption relative to production volume, and operates its own industrial Effluent Treatment Plant, focused on reducing environmental impacts. Social responsibility initiatives include technical training programs, periodic occupational safety standard training, and projects aimed at leadership development, such as the Transformar Program – Wetzel Leadership Academy – and talent retention initiatives such as the Pertencer Program. The company emphasizes diversity and inclusion policies, encourages reporting of discriminatory practices, and seeks socio-environmental alignment in supplier assessment, forming a set of governance and people management practices that complement its industrial operations. The common and preferred shares issued by Wetzel, traded under the tickers MWET3 and MWET4 on B3, reflect exposure to this set of industrial, regulatory, and evolving ESG management activities.