RISK We are exposed to market risks in the ordinary course of our business, including the effects of interest rate changes and foreign currency fluctuations. We monitor market, credit and operational risks in line with the objectives in capital management, supported by the oversight of our Board of Directors, in decisions related to capital management and to ensure their consistency with our objectives and assessment of risks. Information relating to quantitative and qualitative disclosures about these market risks is described below. 151 Table of Contents Interest Rate Risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Our exposure to the risk of changes in market interest rates relates primarily to cash equivalents, loans and financing and accounts payable to selling shareholders with floating interest rates. The following table demonstrates the sensitivity to a reasonably possible change in the current interest rates on cash equivalents, loans and financing and accounts payable to selling shareholders. With all variables held constant, our income before income taxes is affected through the impact on floating interest rate, as follows: Balance as of December 31, 2024 Index Base rate (amounts in R$ thousands, unless otherwise stated) Cash equivalents 883,327 CDI 106,358 Loans and financing (1,341,460) CDI (184,413) Loans and financing (8,209) TJLP (610) Accounts payable to selling shareholders (385,429) CDI (46,766) Accounts payable to selling shareholders (125,276) SELIC (15,221) Net exposure (140,652) Increase in basis points +75 +150 (amounts in R$ thousands, unless otherwise stated) Effect on profit before tax (7,324) (14,648) For further information, see note 12.4.1 to our audited consolidated financial statements included elsewhere in this annual report. Foreign Currency Risk Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. Our exposure to the risk of changes in foreign exchange rates relates to cash and cash equivalents denominated in U.S. dollars in the amount of R$21.6 million as of December 31, 2024. See note 12.4.1 to our audited consolidated financial statements for a sensitivity analysis of the impact of a hypothetical 10% change in the exchange rate variation on our cash and cash equivalents as of December 31, 2024. Credit Risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. We are exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including cash and cash equivalents. Customer credit risk is managed by us based on the established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. Credit risk from balances with banks and financial institutions is managed by the treasury department in accordance with our policy. Investments of surplus funds are made only with approved counterparties and within limits assigned to each counterparty. The carrying amounts of financial assets are the maximum exposure to credit risk for the components of the statements of financial position on December 31, 2024 and 2023. Liquidity Risk Our Management has responsibility for monitoring liquidity risk. In order to achieve the our objective, Management regularly reviews the risk and maintains appropriate reserves, including bank credit facilities with first tier financial institutions. Management also continuously monitors projected and actual cash flows and the combination of the maturity profiles of the financial assets and liabilities. 152 Table of Contents The main requirements for financial resources used by us arise from the need to make payments for suppliers, operating expenses, labor and social obligations, loans and financing and accounts payable to selling shareholders. For more information, see “Item 5. Operating and Financial Review and Prospects—B. Tabular Disclosure of Contractual Obligations.”