Results Presentation

1Q

24

May 09, 2024

1Q24 Results

This presentation includes forward-looking statements that reflect current beliefs and expectations regarding future financial results and other aspects of the business.

These beliefs and outlooks are not a guarantee of future performance and involve risks and uncertainties.

Actual results may materially differ from those projected due to several factors.

Analysts and investors are advised not to place undue reliance on these beliefs and expectations, as they only

refer to the date of publication of this presentation.

Valid is not obliged to publicly disclose the results of any revisions to these beliefs and expectations.

Financial results are reported considering the impacts of the adoption

Results 1Q24

1Q24 Results

R$484Mn

1Q24 (-8% YOY)

R$116Mn

R$148Mn

1Q24 (146% YOY)

R$70Mn

1Q24 (-19% YOY)

Margin of 30% in 1Q24

Margin of 24.0% in 1Q24

-0.1x Net Debt/EBITDA

Revenue

EBITDA

Net Income

Net Cash

The YoY sales

The bigger impact in

EPS: R$1.83 in the quarter

Despite the cash utilization in

decrease was led by

terms of EBITDA was

operational activities, the sale of

the already expected

also the Mobile

The result for the quarter was

Cubic allowed Valid to reach a

weak performance of

segment.

positively influenced by the sale

Net Cash level for the first time

the Mobile segment,

of the minority stake held in

since its IPO.

which has been

Cubic.

undergoing volume

and price pressures.

Positive highlight to

the YoY sales growth

in the ID segment.

1Q24 Results

Quarter marked by volume and price pressures in the Mobile segment, impacting both the Company's Revenue and

EBITDA

Net Revenue (R$ Mn)

-8%

EBITDA (R$ Mn)

EBITDA Margin (%)

19%

529 484

144

116

1Q23

1Q24

1Q23

1Q24

EBITDA

27.1%

24.0%

Margin

1Q24 Results

Income reported in the quarter was positively influenced by the receipt of amounts related to the sale of stake held in Cubic

(R$ Mn)

116

EPS:

R$1.83

  • R$7.5Mn in Expenses related to the release of funds from Argentina

- R$14Mn in Exchange Losses (Nigeria

112

148

and Argentina)

-30

(+149% YoY)

-24

-24

-4

EBITDA 1Q24

Financial Result

Depreciation and

Income tax and

Others

Cubic and VCMC

Net Income 1Q24

Amortization

social contribution

1Q24 Results

EBITDA (R$ Mn) (excluding USA)

ROIC

478

567

539

318

17,7%

22,5%

21.0%

203

11,0%

4,8%

2020

2021

2022

2023

1Q24 LTM

2020

2021

2022

2023

1Q24 LTM

Net Income (R$ Mn) (excluding USA)

ROE

302

15,8%

213

9,4%

6,7%

7,6%

58

15

-88

-18,1%

2020

2021

2022

2023

1Q24 LTM

2020

2021

2022

2023

1Q24 LTM

1Q24 Results

2024

Main change in cash from the sale of assets in the quarter

R$Mn

178

755

619

582

14

-13

-13

-12

-19

Cash (Dec/23)

Net Cash Generated

CAPEX

Financial Result

Cash After Operations

Funding/Payment of Effects of Exchange Rate

Divestments

Cash (Mar/24)

Loans

Note: Operating Cash Generation: EBITDA - Taxes on Result - Working Capital

1Q24 Results

Accounts Receivable (R$ Mn)

+R$0Mn / -0%

Inventories (R$ Mn)

+R$27Mn / -8%

Accounts Payable (R$ Mn)

+R$20Mn / -12%

430

425

421

R$12Mn/ 3%

78

74

76

420

500

450

R$67Mn/25%

200

95

173

181

R$-12Mn/ 7 %

165

75

74

400

362

364

342

335

180

85

153153

70

410

76

399

399

72

400

70

350

300

268

75

160

140

120

65

60

55

390

73

387

66

68

63

66

380

64

370

62

360

60

250

200

150

100

50

0

67

65

59

55

43

65

100

55

80

4560

40

35

20

25

0

51

50

42

42

39

50

45

40

35

30

25

1Q23

2Q23

3Q23

4Q23

1Q24

Trade accounts receivable Average Receivables Period

1Q23

2Q23

3Q23

4Q23

1Q24

Inventories

Average Inventory Period

1Q23

2Q23

3Q23

4Q23

1Q24

Trade accounts payables

Average Payment Period

Highlights:

  • After a significant improvement in the main Working Capital accounts in 2H23, 1Q24 showed a deterioration in the indicators, although at levels better than the previous year's comparison
  • Management continues its efforts to improve the indicators, which may experience some volatility between quarters

1Q24 Results

1Q24 Results

Valid reached the level of Net Cash for the first time since its IPO

Leverage Ratio (Net Debt / LTM EBITDA)

Current Amortization Schedule1 (R$ Mn)

Debt Breakdown1

755

2.7x

478

523

538

555

567

539

32%

17%

331

30%

22%

37%

203

15%

50

12%

14%

31%

83%

15

7%

201

24

7

22

150

9

23

82

93

1

45

30

23

45

Debêntures

Short Term

4Q20

4Q21

4Q22

1Q23

2Q23

3Q23

4Q23

1Q24

1Q24 2Q24 3Q24 4Q24 2025 2026 2027 2028 2029

Bilateral Brazil (CEF, ABC e BB)

Long Term

EBITDA LTM

Net Debt/EBITDA

Cash

Principal

Interest

Bilateral Intl (Santander and Itaú BBA)

Highlights:

  • After the closure of 1Q24, Valid held the 10th Debenture issue, totaling R$243Mn, removing from the market 97.26% of the 9th Debenture issue.
  • The 10th debenture issue increases the average duration by 7 months, reaching 26 months, and reduces the average cost of debt in Brazil by around 50bps, reaching a CDI + 1.79%.

¹Considers the Exchange Offer and the bilateral debt renegotiation of BB carried out after the closure of the quarter.

1Q24 Results

B3: VLID3

Stock Performance (VLID vs. IBOV vs. SMLL) - last 12 months.

160%

SMLL

VLID3

IBOVESPA

140%

120%

104%

100%

80%

60%

40%

26%

20%

26%

0% -20%

3/31/23 4/30/23 5/31/23 6/30/23 7/31/23 8/31/23 9/30/23 10/31/23 11/30/23 12/31/23 1/31/24 2/29/24 3/31/24

Proceeds:

  • Payment of extraordinary dividends related to 2023, of R$0.31 per share, on April 30.

Liquidity:

  • Average daily trading volume of R$8.8Mn in the quarter, a 238% YOY increase.

Stock price: R$18.49

Market cap: R$1,5B

Ex-Treasury Shares: 80,171,552 shares

Base date as of March 2024

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Disclaimer

Valid Soluções SA published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 12:32:09 UTC.