Santos Brasil Participações S A : Report 2023

SUSTAINABILITY REPORT

2023

page 2

Table of Contents

ABOUT THE REPORT	3
Materiality matrix	4
MESSAGE FROM
THE CEO	6
A YEAR OF
ACHIEVEMENTS	8
Numbers	9
Awards and recognition	10
ABOUT US	11
Santos Brasil	12
Map of operations	13
Mission, vision and values	14
ESG COMMITMENTS	15
ESG Strategy	16
Market recognition	17
Commitments to the future	18
Business model and shared value	19

NATURAL CAPITAL	20
Emissions	22
Energy efficiency	24
Protection of biodiversity	25
Waste management	27
Water resources management	28
HUMAN CAPITAL	29
People management	31
Valuing diversity	36
Health and safety	38
SOCIAL AND
RELATIONSHIP CAPITAL	41
Stakeholder engagement	43
Social impact on the community	45
Private social investment	47
Customer relationship and satisfaction	50
Supply chain	51

CORPORATE
GOVERNANCE	53
Governance structure	54
Corporate risk management	56
LGPD	57
Ethics, transparency and compliance	57
Protection of human rights	59
BUSINESS
PERFORMANCE	60
Macroeconomic and industry scenario	61
Operational efficiency,
expansion and modernization	62
Economic-financial performance	65
GRI SUMMARY	67
Assurance letter	76
CORPORATE
INFORMATION	78

2023 Sustainability Report - About the Report	page 3

ABOUT THE REPORT

GRI 2-2,2-3,2-5,2-14

2023 Sustainability Report - About the Report

page 4

GRI 3-2

This is the 18th Sustainability Report of Santos Brasil, a publicly traded company with shares listed on the Novo Mercado segment of the B3 stock exchange. This edition refers to the period from January 1 to December 31, 2023, unless otherwise indicated. Every year we present information about all the operations and units of the company related to economic, financial, governance, environmental, and social aspects, considering also the industry sector in which it operates. GRI 2-3

Materiality

Matrix

For this report, referring to 2023, we considered the materiality matrix as revised in 2022. The materiality process, updated every two years, aims to instruct the preparation of a relevant document, which showcases our business vision, in addition to addressing the impacts of our activities with transparency and considering the interests of our stakeholders. The identification of our material topics was based on analyzes, prioritizing strategic stakeholders, and validation by senior leadership. -

CONSULTING STAKEHOLDERS

16

interviews with senior leadership

The report, approved by the Sustainability Committee, is aligned with the guidelines of the Global Reporting Initiative (GRI), and is inspired by the integrated reporting model of the

International Integrated Reporting Council (IIRC). The economic and financial data were audited by Ernst & Young (EY) and compliance with the GRI

standard was ensured by SGS Sustentabilidade. Please find the complete financial statements on

the Investor Relations website. GRI 2-2, 2-5, 2-14

In addition to this document, detailed information can be consulted in the Appendices Book, to comply with the GRI, Task Force on Climate-related Financial Disclosures (TCFD), and Sustainability Accounting Standards Board (SASB) indicators.

Doubts, questions or suggestions about this report can be sent to the e-mail:

[e-mail]. GRI 2-3

STEPS OF THE MATERIALITY

PROCESS GRI 2-2,2-29,3-1

Analysis: evaluation of Santos Brasil's documents, sustainable development trends and benchmarks, followed by the preparation of a preliminary list of topics;

Prioritizing topics: consulting the senior leadership and stakeholders - male and female employees, supplier companies, customers, non-governmental organizations, government and civil society representatives, investors, unions, partners, financial institutions, press, regulatory agents and industry entities;

Consolidation and approval: completion of Santos Brasil's materiality matrix and validation by the Sustainability Committee.

473

feedback responses from an online survey with the mapped stakeholders

10

material topics that represent our vision of the business and our stakeholders

2

transversal topics that permeate all the Company's operations

2023 Sustainability Report - About the Report	page 5

MATERIAL TOPICS GRI 3-2, 3-3

MATERIAL TOPICS		IMPACTS		INDICATORS AND SDGs
		Ethics, transparency and compliance		Risks related to non-compliance with social and environmental laws and regulations;		GRI 205-1,205-2,205-3,206-1
			unfair competition; risks of corruption and violation of the company's ethical principles		SGD 16
				Risks of work accidents in the operation and with service providers; guarantee of the		GRI 403-1 to 403-10,410-1,416-1
		Occupational health and safety			SASB TR-MT 320a.1
			health and safety of employees and third parties
					SDG 3, 8
expansion	environmentlegaland
Innovation and technology		Business competitiveness; optimization; process management improvement		Management approach and own indicators
				SDG 9, 17
		Decent work, turnover and human		Employee retention; qualification; guarantee of freedom to unionize and freedom		GRI 401-1 to 401-3,402-1,404-1 to
				404-3,407-1
		capital development		of association
				SDG 4, 8
		Customer relationship and satisfaction		Quality of services provided; meeting market demands, including on social and		GRI 3-3 and own indicators
			environmental topics		SGD 12
andDiversification	regulatorytheofManagement	Efficiency and operational stability		Business continuity; cost reduction; influence on customers perception; efficient use		GRI 3-3 and own indicators
	of resources		SDG 9, 13
		Efficient use of water resources		Water scarcity risk; operational risk; process efficiency; environmental compliance		GRI 303-1 to 303-5
				SGD 6
		Biodiversity protection		Impacts on biodiversity, in particular on the coast, sea and land use		GRI 304-1 to 304-4
				SDG 13, 14, 15
		Waste and effluent management		Hazardous waste management; circular economy; compliance with laws		GRI 306-1 to 306-5
			and regulations		SDG 6, 12
				Risks related to human rights violation (labor issues, child labor, labor analogue to		GRI 408-1,409-1,412-1 to 412-3,414-1 to
		Human rights			414-2
			slavery and safety risks) in operations and in the value chain; appreciation of diversity
					SDG 5, 8, 10
						GRI 201-2,305-1 to 305-7
				Financial implications arising from climate change; impacts related to emissions		SASB TR-MT-110a.1, 110a.2, 110a.3, 120a.1
		Climate change			Task Force on Climate-Related Financial
			originated by the business; adaptation and mitigation actions; regulatory risk
					Disclosures (TCFD)
						SGD 13
Transversal topics

SUSTAINABLE DEVELOPMENT GOALS

SDG3 - Health and well-being

SDG4 - Quality education

SDG5 - Gender equality

SDG6 - Clean water and sanitation

SDG8 - Decent work and economic growth

SDG9 - Industry, innovation and infrastructure

SDG10 - Reduction of inequalities

SDG12 - Responsible consumption and production

SDG13 - Action against global climate change

SDG14 - Life below water

SDG15 - Life on Earth

SDG16 - Peace, justice and effective institutions

SDG17 - Partnerships and means of implementation

2023 Sustainability Report - Message from the CEO	page 6

GRI 2-22

Message from the CEO

In 2023, Santos Brasil's results improved significantly compared to the previous year. EBITDA grew by 23.5%, reaching R$1 billion, with a margin of 46.8%, an improvement of 4.9 percentage points compared to 2022. Net revenue increased by 10.5% to R$2.1 billion, while net income grew by 17.4% to R$504.3 million. Our balance sheet remains healthy, with a net debt/EBITDA ratio of 0.07x. These results reflect the company's strict cost and expense management, combined with the creation of new, higher value-added products, and a highly skilled team dedicated to our mission of increasing our clients' competitiveness.

Our business model's adaptability was tested in 2023 by two extreme weather events that challenged our operational performance: the drought in the Amazon river region and heavy rainfall in Santa Catarina. Our operations at Tecon Vila do Conde (Pará) and Tecon Imbituba (Santa Catarina coast) were crucial in maintaining Brazilian logistics operations. Tecon Vila do Conde helped prevent the isolation of the Manaus Free Trade Zone by performing transshipment operations for barges serving the Port of Manaus. Tecon Imbituba, with its deep waters and large-scale infrastructure, was able to receive ships that could not dock at the Port of Navegantes.

of Santos, enabling the recovery of the berthing schedule along the Brazilian coast. Our ability to provide clients with unique, irreplaceable products has given the terminal a distinctive competitive edge at the Port of Santos.

The logistics sector faced a challenging year with low import performance at the Port of Santos. However, despite the revenue decrease in 2023 compared to 2022, our EBITDA improved, reaching R$112.3 million, with a margin of 27.4%, an increase of 14.9% compared to 2022. The improvement in results reflects operational efficiency gains and a better product mix, leading to a higher average sales ticket.

At Tecon Santos, our available capacity and high terminal efficiency		Our operations at Tecon Vila do Conde (Pará) and
	Tecon Imbituba (Santa Catarina coast) were crucial
were essential for serving non-regular vessels, also known as extra
calls. We also reduced the waiting time for vessels to dock at the Port		in maintaining Brazilian logistics operations.

Antonio Carlos Duarte Sepúlveda

CEO of Santos Brasil

2023 Sustainability Report - Message from the CEO	page 7

In the liquid bulk segment, we operated with 50,000 m³ of static capacity in 2023 and handled 601,000 m³ of fuels at our terminals in Itaqui (Maranhão). The high level of services provided allowed us to reach full capacity occupancy in the last quarter. The expansion works are on schedule and within the planned budget. In 2024, the expansion of the two brownfield terminals will be completed, increasing static capacity to 110,000 m³. The project will be finalized in 2025, with the completion of the greenfield terminal, raising our static capacity to 190,000 m³. With initial investments of over R$600 million, this unit will account for about a quarter of the total capacity planned for the Port of Itaqui, a strategic hub for distributing petroleum products to Brazil's North, Northeast, and Midwest regions, and serving the agribusiness sector.

Our social programs have also expanded, benefiting over 90,000 people, particularly youth and vulnerable groups. In the environmental area, we met our commitment to reduce waste generation by 50% in 2023, achieving our three environmental goals ahead of schedule, with a 41% reduction in water consumption and a 36% decrease in greenhouse gas emissions. We are firmly committed to decarbonizing our operations. Our new investments align with this environmental agenda and include electrifying equipment and using renewable fuels. For the second consecutive year, we joined the B3 Corporate Sustainability Index (ISE), which includes a select group of companies recognized for their commitment to the ESG agenda.

We are optimistic about 2024. We believe volumes will increase compared to 2023, and our market share will grow, with margin improvements in all three operational areas of the company. We will work hard to increase our operational capacity and productivity. Our capital allocation strategy will remain unchanged, with planned

We met our commitment to reduce waste generation by 50% in 2023, achieving our three environmental goals ahead of schedule, with

a 41% reduction in water consumption and a 36% decrease in greenhouse gas emissions.

investments in containers, logistics, and liquid bulk terminals. This year, the company will allocate R$650 million to R$730 million to increase capacity and improve operational efficiency.

In support of these three growth vectors, we will focus on six key dimensions for our business: employee experience, customer experience, ESG, technology and innovation, financial discipline, and regulatory expertise. Topics such as transparency, human development, increased diversity, a culture of innovation, and mitigation of environmental impacts, to name a few, have never been more present in the company.

The challenges for the coming years are many, but we believe in the effectiveness of our strategy and our execution capability. We are confident and prepared to continue growing sustainably, contributing to the increase of Brazil's port capacity.

*TEU - acronym for Twenty-foot Equivalent Unit, a unit of measurement used to determine the loading capacity of ships and container terminals.

2023 Sustainability Report - A year of achievements	page 8

A YEAR OF ACHIEVEMENTS

2023 Sustainability Report - A year of achievements	page 9

Numbers

All three environmental goals achieved early:

reduction in	reduction
36% greenhouse	41% in water
gas emissions	consumption

50% reductionin waste generation

R$ 260 million

invested in equipment electrification

R$ 631 million

invested in the expansion and modernization of operations

R$ 479 million

in dividends paid to shareholders

24%

increase in capacity at CLIA Santos

90 thousand

people impacted by

41 projects

in social and environmental areas supported with R$3.8 million in funds from tax incentives

1.400 people

visited Santos Brasil's facilities

48 initiatives

in social and environmental areas selected to receive in 2024 R$ 5 millions in funds from tax incentives

100%

new suppliers assessed for social and environmental issues*

132

extra vessels served (among ships and ferries)

Score 83

(excellence level)

in Net Promoter Score,

in the first year of operations of the Liquid Bulk Terminal

*Process started in November 2023

2023 Sustainability Report - A year of achievements	page 10

Santos Brasil receiving Grupo Tribuna's 2023 ESG Award

Awards and recognition

Evolution of ESG in Brazil | 2023

Santos Brasil was elected the third most influential company on ESG in the digital sphere, in the report "The evolution of ESG in Brazil", prepared by the UN Global Compact, with consultancy from Falconi and the Stilingue Artificial Intelligence platform.

Latin America Executive Team 2023

We won first place in all eight categories of the 2023 Latin America Executive Team ranking, by Institutional Investor, a North American publication with over 50 years: best CEO; best CFO; best IR professional; best IR Team, IR Program, Analyst Day, ESG and Board of Directors - considering Small Cap companies in the Transport sector.

23rd Broadcast Empresas

Award | 2022

We are among the ten companies with the best financial performance in 2022, ranking tenth among 240 companies analyzed. The award is organized by Agência Estado, in partnership with Fundação Getúlio Vargas (FGV).

Grupo Tribuna 2023 ESG Award

We were recognized by our water efficiency program.

Great Place to Work 2023 (GPTW)

For the fifth consecutive year we were elected one of the best companies to work for in Brazil, scoring 81 in the last edition.

2022 Melhores e Maiores Award from Exame Magazine

We were ranked the third best company in the Transport, Logistics and Logistics Services industry in Exame magazine's Melhores e Maiores award. In this 49th edition of the yearbook, a thousand companies were evaluated.

Época 360º Award | 2023

For the second year in a row, we won best company in the infrastructure sector, according to the Época 360° Award. In the 2023 edition, the survey evaluated more than 410 companies from 24 industries.

Ecovadis Bronze Category | 2023

Since 2016, the platform has evaluated the quality of Santos Brasil's corporate social responsibility practices, considering international standards of sustainable development.

Find out more about market recognition in the ESG Commitments chapter.