Professional Corporate Governance Structure

We have a highly qualified professional Management team that surpasses the minimum requirements imposed on companies who have shares listed for trading in the special corporate governance segment of B3 S.A. – Brasil, Bolsa, Balcão called Novo Mercado. Since 2005, we have had a professional and highly qualified Executive Board, composed of our Chief Executive Officer, Mr. Altair Silvestri, and our Chief Financial and Investor Relations Officer, Mr. Rafael Boeing, who have worked in the sector for over 40 and 25 years, respectively, and who do not have any personal or family ties with our controlling shareholders.

The Company has also had a Board of Directors since 1991. Our Board of Directors has had at least one independent member since 1991 and a member elected by Dahua since 2019, who, despite his business relationship with the Company, does not have any other relationship with our controlling shareholders. We believe in the effectiveness of the internal and external control and audit mechanisms. For this reason, we have been audited by one of the leading auditing companies (Big Four) since 2000, and we rotate our auditors every five years.

In 2010, we also set up a non-statutory audit committee that has been linked to our Board of Directors since November 25, 2020, in line with the best corporate governance practices and the Novo Mercado Regulation of B3. We believe that the high-quality of our Management, our professional Executive Board and our internal and external control and audit mechanisms make us more confident about the work of our accounting and operational areas. Throughout our history, we have maintained a strong presence in Environmental, Social and Governance (ESG) initiatives.

Regarding the environment, we have recently developed the largest solar roof in the country’s South region, with over 4,000 solar tiles, at the São José unit. In the social aspect, in addition to encouraging our employees to do volunteer work, we donate products and solutions for public buildings, universities, events and hospitals, as well as sponsor cultural events and educational projects.

Our culture is intensely adopted by all employees, who have a strong sense of ownership and strive to enchant customers, constantly fueled by internal leadership development programs, profit sharing programs and bonuses for all employees since 1993, all of which promote alignment between shareholders and employees. This way, it is not necessary to supervise employees to ensure that the customers’ problems will be solved.