Technos S.A. is a Brazilian publicly held company, with common shares traded on B3 under the ticker TECN3, headquartered in the city of Rio de Janeiro. Although the current holding company was incorporated in 2007 and began operations in 2008 with the corporate purpose of holding interests in other companies, the origin of the business dates back to 1956, with the founding of the importer Centauro to act as the exclusive distributor of the then Swiss brand Technos in Brazil. The brand’s trajectory starts even earlier, abroad, with the Gunzinger family opening its first watchmaking workshop in 1900 and registering the Technos brand in 1924. Throughout the 1950s, 1960s and 1970s, the Brazilian operation grew significantly, culminating in leadership of the domestic watch market in terms of revenue by the late 1980s. The company went public in 2011 and has consolidated itself as one of the main watchmaking groups in Latin America, operating in an integrated manner in the development, assembly, distribution and retail of wristwatches.

Technos’ main activity is the development, assembly and sale of watches, directly or through its subsidiaries, with a predominant focus on the Brazilian market. Since 1956, the company has expanded its portfolio beyond the original Technos brand, going on to manage a set of own and licensed brands that cover different price ranges, styles and target audiences. As of December 31, 2024, the company was developing and distributing products from ten nationally known brands: seven own brands (Technos, Touch, Euro, Allora, Condor, Mariner and Dumont) and three third-party brands licensed or distributed on an exclusive basis (Mormaii, Fossil and Michael Kors. Its business model is essentially geared toward discretionary consumer goods, with revenue concentrated in the sale of analog, digital, multifunction and chronograph watches, complemented by after-warranty technical assistance services and sales of replacement parts.

Technos’ brand portfolio is structured to cover several segments of the watch market, combining fashion, sports and classic niches, and economic, mid-range and more aspirational price ranges. The Technos brand, of Swiss origin and the group’s most established, is positioned in the classic segment, focused on analog, multifunction and steel chronograph watches for adults, associated with a perception of quality and tradition. Condor operates as a democratic fashion brand, with strong appeal in accessible pricing and giftable kits for both female and male customers. Euro, Allora and Touch strengthen the group’s presence in the fashion segment, with an emphasis on young and adult women interested in style trends at competitive prices. The Mormaii brand, licensed until 2026, targets the sports segment linked to the surfing and wellness universe, with analog and digital watches. The Fossil Group brands, including Fossil and Michael Kors, are operated under brand distribution and usage agreements valid until 2025, adding to the portfolio products aligned with international fashion trends.

On the operational front, Technos combines in-house product design and development with a global supply chain for components and final assembly in Brazil. The company maintains its own industrial plant in the Manaus Free Trade Zone, with around 8,570 m² and hundreds of employees, dedicated to assembling and distributing watches. The main components — such as straps, cases, crystals and movements — are purchased from a diversified base of suppliers in China and Japan, with which the group maintains long-term relationships, without long-term supply contracts, operating through individual purchase orders. The company maintains an office in Shenzhen to strengthen relationships with manufacturers and reinforce quality control at origin. The product development process generally takes 6 to 12 months, involving internal teams dedicated to planning, trends, design and sourcing, with frequent trips to Europe, Asia and North America to attend trade shows and identify global watchmaking trends.

Technos products are distributed through a broad and highly fragmented network of retailers and proprietary channels. As of December 31, 2024, the company served more than 9,000 active points of sale nationwide, including watch and jewelry stores, optical shops and department stores, without any material concentration in a single client or chain. The company also invests in digital channels, operating five e-commerce websites, four of which are dedicated to its main brands (Technos, Fossil, Euro and Condor) and one proprietary marketplace, Timecenter, focused on the online offering of all brands in the portfolio. In addition, it maintains a network of 16 own stores in major capitals, combining full-price units, focused on brand building and product testing, and outlet units, used as a tool for inventory management and clearance of slower-moving items with less impact on traditional channels.

Technos’ market is predominantly domestic. All relevant net revenue comes from Brazilian customers, with exports considered immaterial and foreign operations not generating significant revenue. Within Brazil, the company has a presence in every state, with standout revenue contributions from the North and Northeast regions, which historically show GDP growth above the national average. In 2024, the group reported gross revenue of R$ 464.3 million, adjusted EBITDA of R$ 93.2 million and net income of R$ 64.8 million, in a context of gradual recovery in the watch segment after the pandemic, but still marked by high interest rates and a strong US dollar. The company does not depend on individual customers; in 2024 there was no buyer accounting for more than 10% of total net revenue.

Technos’ industrial operation is subject to specific environmental regulation, since watch assembly is classified as a potentially polluting activity and requires licensing. The Manaus facility operates under a license issued by the state environmental agency, IPAAM, valid until March 2027, subject to periodic renewals and compliance with technical requirements. The company highlights the need to adhere to rules on effluents, waste handling and disposal, atmospheric emissions and noise, noting that violations may result in administrative, civil and criminal penalties. To mitigate risks, the company implements practices such as sewage treatment, cardboard recycling and sale of metal scrap for reuse, but does not formally adopt international environmental certification standards. In addition, assembly in Manaus benefits from tax incentives, such as the ICMS benefit granted by the State of Amazonas to the sector, renewed until December 2026, which contributes to the competitiveness of production.

In terms of brands and contracts, Technos is highly dependent on its intangible assets, especially its own Technos and Condor brands, and on licensed or exclusively distributed brands such as Mormaii, Fossil and Michael Kors. The Mormaii licensing agreement, registered with the INPI in the name of Mormaii Indústria, Comércio, Importação e Exportação de Artigos Esportivos Ltda., is valid until September 2026 and provides for the payment of royalties on gross revenue and minimum commitments to marketing investment. The Fossil Group brands, in turn, are exploited through a distribution and brand usage agreement with Fossil Partners, L.P., renewed until December 2025, which ensures the exclusive right to assemble, distribute and market Fossil and Michael Kors watches in Brazil, without upfront royalty charges. The company states that it does not make financial contributions to political parties, candidates or initiatives aimed at influencing public policy.

With respect to environmental, social and governance (ESG) practices, Technos does not yet publish a formal sustainability report audited by third parties, but it does maintain a dedicated ESG section on its corporate website, in which it indicates its commitments and progress. The company states that it complies with current environmental legislation and declares a commitment to sustainable development, supported by an internal materiality matrix that guides priorities such as business model resilience, ethics and reputation, health and well-being, product quality and safety, socio-environmental management of the supply chain, waste management, greenhouse gas emissions, water use and effluents, gender equality, people training and development, energy management, data security, diversity and inclusion, and prevention of critical incidents. Even without a specific report, the company considers certain UN Sustainable Development Goals as guidelines, including health and well-being, quality education, gender equality, affordable and clean energy, decent work and economic growth, responsible consumption and production, climate action and institutional integrity, incorporating these topics into its corporate strategy and the evolution of its internal indicators.

As an issuer listed on B3, with TECN3 shares, Technos follows corporate governance practices typical of Brazilian public companies, with professional management and a board of directors that underwent significant changes in 2019, when an operational turnaround process began. This movement focused on restoring efficiency and profitability, digitizing channels, strengthening the connected watches category and restructuring after-sales, with technical assistance outsourced to an authorized service network. The management structure combines executives with long experience in the watch and consumer markets with new talent, seeking to align product development, the manufacturing operation in Manaus and the multichannel presence in brick-and-mortar and digital retail in Brazil.