Message from the Board of Directors | 2022

Last year validated once again our conviction that Votorantim creates value for shareholders, business partners, employees, and society through its robust long-term strategy, with a clear investment view and social commitments.

In yet another period in which health, political, and climate events had deep impacts on the world, creating a scenario of uncertainty and greater market volatility in Brazil and globally, we continued to execute our strategy and improve our investments theses, demonstrating our ability to manage short-term challenges, while also investing in the long-term transformation of our business.

Votorantim’s Board of Directors fulfilled its role by encouraging and supporting investment decisions and continuing to seed the portfolio for the long run. Our key achievements and deals in 2022 include our debut in the infrastructure sector, consolidation of our operations in renewable, and a new investment vehicle in high-growth companies and new technologies in Brazil. The details of all these business moves are included in this Annual Report.

2022 also reinforce our ability for partnerships. Throughout the year, we teamed up with institutional and strategic partners that share our vision and values, thus allowing us to invest more robustly and opening up a wide range of opportunities that directly contribute to our goal of asset diversification.

Our collaboration goes beyond business strategy. By the end of 2022, we were investing in 10 sectors, including both listed and non-listed companies and liquid assets. In all of them, we hold seats on Boards, allowing us to provide support and closely monitor progress. As engaged investors, we also encourage each of our portfolio companies to adopt best practices in their respective sectors, while always respecting their decision-making autonomy.

As board members, we have been guiding capital allocation movements in accordance with our investment guidelines and Votorantim’s DNA. This naturally includes looking at current challenges, such as decarbonization — a sector in which we intend to be a strong player, we achieved notable results in 2022, introducing unprecedented methodologies to the market: an internationally renowned REDD+ certification for the Cerrado biome, and Payments for Environmental Services (PES) for the Atlantic Forest. Both initiatives allow the forest to remain standing and conserved, but also to be economically active.

These and other results were only possible through the dedication of our employees, the commitment of our companies, and the trust placed in us all by our shareholders.

Most of all, I would like to highlight the strengthening of our companies’ councils and committees. Governance is an essential element of Votorantim’s success and a constantly evolving organism.

Patient capital, optimism, and readiness are key to move forward in 2023, faithful to our commitment to invest, continue the same strategy, and consistently generate a positive impact on society.

 

Eduardo Vassimon

Chairman of the Votorantim S.A. Board of Directors