Vulcabras (VULC3) investor relations material

Market overview and growth potential

• Brazil is the 4th largest global footwear market, with 801 million pairs consumed annually and only 30% of the population engaging in physical activity, indicating significant growth potential for athletic footwear and sports lifestyle products.

• The proportion of Brazilians engaging in physical activity has increased by 33% over the past five years, and sports lifestyle consumption has grown consistently since the pandemic.

• Running is the 4th most practiced sport in Brazil, with 15 million regular runners expected in 2025, growing at 14% annually.

Business model and operations

• Operates two advanced manufacturing plants and the largest R&D center for sports footwear in Latin America, developing over 800 new sports models annually.

• Vertical integration enables a fast trend response, with a 5-week lead time from order confirmation to production, outperforming international competitors.

• Broad commercial structure includes 21,000+ points of sale, 46 representation offices, and 326 sales reps, with direct monitoring of over 50% of clients.

• E-commerce complements wholesale, with presence in Brazil's 13 largest marketplaces and 16.1% net revenue growth (2Q26 vs 2Q25).

Brand portfolio and innovation

• Manages strategic and complementary brands: Olympikus (Brazilian, democratizing technology), Mizuno (performance, Japanese heritage), and Under Armour (American, empowering athletes).

• Focus on innovation with award-winning products, including the world's first running shoe with a graphene plate and the first super shoe made in Brazil.

• Proprietary technologies such as Carbon G, Mizuno Enerzy, and Under Armour Charged enhance performance and comfort.

• Brand management emphasizes authentic consumer connection, partnerships with athletes, and proprietary events.