Fras-le (FRAS3) Investor presentation summary

Company overview and market position

• Operates in over 125 countries with a portfolio of 25 brands and more than 7,600 employees.

• Market capitalization reached R$6.8 billion as of December 2025.

• Holds leadership positions in key product categories, including brake linings, pads, and discs for both commercial and light vehicles.

• Listed on B3 with 100% tag along and a diversified shareholder base.

• Over 33,000 SKUs across friction, suspension, engine, and brake system components.

Financial performance and growth

• Net revenue grew to R$5.41 billion in 2025, with adjusted EBITDA of R$975 million and an 18% margin.

• Net income reached R$388.7 million in 2025, with a margin of 7.1%.

• Free cash flow improved to R$737 million in 2025, with investments totaling R$190.5 million.

• Net debt/EBITDA ratio reduced to 0x by 2025, reflecting strong deleveraging.

• Guidance for 2025 targets net revenue between R$5.4–5.8 billion and EBITDA margin of 17.5–20.5%.

Strategic expansion and acquisitions

• Pursued inorganic growth through acquisitions such as Fremax (2018), Nakata (2020), Juratek (2023), and Dacomsa (2025).

• Dacomsa acquisition strengthened leadership in the Mexican market, with R$1.4 billion in net revenue and 23.7% EBITDA margin.

• Mapped synergies from Dacomsa expected to deliver US$20.5 million by January 2026, mainly through cost efficiencies.

• Expansion cycles focused on portfolio growth, internationalization, and innovation.