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Earl Nightingale

Dear stakeholder;

We make available the audited Financial Statements for the year 2021 of the company Nova Smar S.A.

The year 2021 was challenging for the most varied sectors. Even with the important upturn in the economy, impacted by the new evolution of consumption and investment, the fiscal year is closed amid the high dollar and inflation.

The effects of these indicators are reflected, in particular, in the management of current expenses and in the construction of strategies to make the business even more secure on the operational side.

It can be seen in the financial statements that management sought to increase the positive balance of inventories in order to maintain safe levels of control (units and prices) against the inflationary scenario. This decision can be seen in the maintenance of the ratio of costs and sales in the period 2021 compared to 2020.

Even investing in inventory, it was possible to effectively manage the liquidity of the business, ending the year with significantly more cash than in 2020. It should also be emphasized that this cash is not generated by third-party capital, but with resources from the operation itself.

Nova Smar's current liquidity indicator was considerably higher than the sector's (3.56 compared to 1.39 for Materials Industry; 2.07 for Machinery & Equipment, and 2.18 for Information Technology).

About the result for the period, an amount of R$2.9 million was earned in 2021. This result, compared to 2020, is sensitized due to greater commercial and people investments. The period ends with the formation of assets worth more than 29 million reais. It is also worth mentioning that Nova Smar increased about 15% of its revenue in the last year.

Available in this section are the Financial Statements for fiscal years 2020 and 2021:

• Balance Sheet;
• Statement of Income for the Year;
• Statement of Comprehensive Income;
• Statement of Cash Flow;
• Statement of Changes in Shareholders' Equity and Explanatory Notes.

It is important to highlight that the financial statements were duly audited by an auditing company certified by CMV (Comissão de Valores Mobiliários), even though there is no legal requirement, according to Law 11.638/07 and Law 6.404/76.