Springs Global Participações S A : Dados Econômico-Financeiros

SPRINGS GLOBAL PARTICIPAÇÕES S.A.

CNPJ/MF - 07.718.269/0001‐57

NIRE 3130002243‐9

Publicly Traded Company

Dear Shareholders,

The management of Springs Global Participações S.A. submits for your consideration the Company's Management´s Discussion and Analysis and Financial Statements for the year of 2022. Such information, prepared in accordance with the International Financial Reporting Standards (IFRS), as well as the accounting practices adopted in Brazil and standards established by "CVM", the Brazilian Securities Exchange Commission, is accompanied by its Independent Auditors' report.

In view of the challenging scenario, with the combination of (i) high interest rates, (ii) inflation of product costs and services, and (iii) reduction in the purchasing power of families, harming, mainly, the demand for brands that target the lower‐income population, the Company has adopted the following measures that will allow the continuity of its operations, with gains in operational scale, and reduction of its financial leverage.

Operational restructuring

The Company has decided to restructure its industrial operation, in order to improve its profitability, with the simplification of its product lines, reducing it manufactured SKUs from approximately 7,000 to approximately 1,500. Wholesale sales will be concentrated on products under the Santista brand, with its own production, while the Artex, MMartan and Casa Moysés brands will be exclusive to AMMO Varejo sales. This optimization of production makes it possible to reduce industrial complexity, with productivity gains; reduction of unit cost; reduction of percentage of second quality, due to the increase of the production batches; and reduction of necessary working capital, contributing to better profitability for the Company.

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Debt management

In the third quarter of 2022, the business combination of New Keeco Holdings, LLC, Springs Global's indirect subsidiary that was available for sale, was completed with Hollander Parent Corporation, forming a new combined company called Keeco, Inc., which will operate in the same market segment as both companies, with consolidated revenues equivalent to US$1.2 billion. With this transaction, Springs Global has an expectation that is stake in Keeco will have a significant appreciation in the coming years, through business growth and obtaining operational and administrative synergies. On the other hand, with the postponement of the sales of its share in Keeco, the Company began to look for other sources of liquidity to reduce its financial leverage. The Company renewed part of its debt agreements, equivalent to R$ 402.6 million in 2022, highlighting the issuance of debentures convertible into shares by the indirect controlled company AMMO Varejo S.A., in the amount of R$ 180 million, and obtained a waiver of compliance with financial ratios for December 31, 2022.

Additionally, on May 5, 2023, the Company informed the market that negotiations were concluded with financial institutions, with which the Company and its subsidiaries maintain financing agreements, for the extension of their maturities, obtaining a new average disbursement term of more than 3 years, until March 2030, with disbursements expected for 2023 being reduced by 80%.

Allocation of non‐operating properties for sale

In the fourth quarter of 2022, the Company decided to allocate its non‐ operating properties in São Gonçalo do Amarante‐RN for sale, whose balance sheet values as of December 31, 2022 totaled R$ 429.7 million, and started negotiations with some interested parties, which are in progress.

Reduction of loans receivable from companies in the Coteminas group

The related parties receivable balance, mainly with Companhia Tecidos de Norte de Minas (CTNM) will be reduced as the companies in the group receive payments for the sale of properties and businesses, which are in progress, and amortize their respective loans with Springs Global. The resources received by Springs Global will be used to pay debts with third

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parties, and, therefore, contributing to the reduction of its indebtedness and cost of debt.

Among the non‐operating assets being sold, we highlight the contract for the sale of a farm whose amount to be received by the controlling company will be used to (i) reduce loans receivable from companies in the Coteminas group; (ii) reduce the debt; and (iii) financing working capital. The conclusion of the sale, and, therefore, the beginning of payment, depends on certain precedent conditions.

Finally, in April 2023, the parent company Companhia de Tecidos Norte de Minas (CTNM) signed a Memorandum of Understanding, with SHEIN, a company headquartered in Singapore, for the establishment of a partnership, involving: (i) the joint effort to have 2,000 of its clothing manufacturing customers as SHEIN suppliers to serve the domestic and Latin American markets, (ii) financing for working capital, and (iii) contract for the export of home products.

Delay in publishing financial statements

The Company postponed the release of its financial statements due to delays in completing the audit work of its subsidiary Springs Global US. Inc.

Relationship with independent auditors

In 2022, the Company did not engage its independent auditors for services other than those related to the audit work.

Acknowledgements

We would like to express our appreciation to our customers, our employees, our suppliers, our shareholders, financial institutions, government officials, trade and social organizations, and everyone that has contributed directly or indirectly to the achievement of our strategic and social goals.

Management

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Company overview

Springs Global Participações S.A. (Springs Global is a company in the Home

• Decoration market, leader in bedding, tabletop and bath products, with traditional and leading brands in the segments in which it operates, strategically positioned to target customers of different socioeconomic profiles.

Our brands have a high rate of awareness among consumers and specialists, being a quality reference in the sector. In Brazil, Springs Global´s main brands are Santista, Artex, MMartan, and Casa Moysés. In Argentina, the Company has the brands Palette, Arco‐Íris, and Fantasia, which are market leaders.

Springs Global operates vertically integrated plants, from spinning through weaving, preparation, dyeing, printing, finishing and cutting and sewing, with eight plants located in Brazil, and one in Argentina. All plants have a high degree of automation and flexibility.

Springs Global's products sold in the wholesale market are classified as: (a) Bedding, Tabletop and Bath ("CAMEBA"), and (b) intermediate products. The CAMEBA line includes bed sheets and pillow cases, sheet sets, tablecloths, towels, rugs and bath accessories. Intermediate products are yarns and fabrics, in their natural state or dyed and printed, sold to small and medium‐sized clothing, knitting and weaving companies.

The Company distributes its products through the wholesale channel, in all its markets, and in its monobrand retail stores, in Brazil. The Company also markets third party products, through partnerships, at its online stores.

Financial Performance1

Net revenue reached R$ 1,217.4 million in 2022, 29.2% lower than 2021, with gross margin of 13.4%.

In 2020 and 2021, families invested in their well‐being, due to the longer stay in their homes, favoring the home & wellness sector, and in 2022, with

1 The financial and operational information presented in this release, except when otherwise indicated, is in accordance with accounting policies adopted in Brazil, which are in accordance with international accounting standards (International Financial Reporting Standards - IFRS).

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the resumption of their routines, they directed their spending to other items such as clothing and services.

Moreover, inflation has been a relevant factor in the loss of purchasing power of families and in the increase in the cost of the products offered, harming, mainly, brands whose target audience is the lower income population.

There was a reduction in operations in 2022, with scheduled stoppages at the manufacturing units, resulting in idle costs equal to R$ 175.1 million.

Gross profit totaled R$ 162.6 million in 2022, with a reduction of R$ 448.3 million, or 73.4%, year‐over‐year (yoy). Cash generation, excluding extraordinary items, as measured by adjusted EBITDA, reached R$ 166.5 million negative, with adjusted EBITDA margin of ‐13.7%. The net loss totaled R$ 630.8 million.

Financial indicators

in R$ million

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