Ferbasa (FESA4) investor relations material

Institutional overview

• Integrated ferrochrome producer in the Americas and Brazil's largest ferroalloy producer, with 65 years of history and strong ESG commitments.

• Major employer in Bahia, operating in 18 municipalities and generating 4,750 jobs.

• Annual investment of R$35 million in education through Fundação José Carvalho, supporting 3,700 students in 6 schools.

Operational and financial results

• Consolidated net revenue grew 4.4% in 2025, driven by a 6.8% increase in ferroalloy sales volume and a 5% higher average USD/BRL rate, despite a 7.4% drop in average dollar prices.

• EBITDA reached R$352 million in 2025, with a 13.1% increase in cost of goods sold (CPV) due to higher energy and chrome ore costs.

• Net profit benefited from a R$91.8 million fair value gain on biological assets and R$32 million in recovered tax credits.

• Financial reserves decreased by R$48.3 million, reflecting operational results, dividends, amortizations, and capex.

Market and industry trends

• Global stainless steel production rose 1% in 2025, led by China, India, and the US; Brazil's apparent consumption of stainless steel grew 30%.

• Global high-carbon ferrochrome production fell 8%, mainly due to South Africa, while Chinese production grew.

• Chrome ore production increased 2% globally, with South Africa up 5% and Chinese imports up 14%.

• Global crude steel output dropped 2%, with Brazil down 1.6% due to higher imports.

• Silicon alloys market faced lower demand and maintained high export tariffs in China.