Earnings Release 4º Quarter of 2018 Jundiai, March 11, 2019 - Vulcabras Azaleia S.A. (B3: VULC3) announces today its results for the fourth quarter of 2018 (3Q18). The Company’s operating and financial information is presented based on consolidated figures MENSAGEMand in millions of reais, DA prepared PRESIDÊNCIA in accordance with accounting practices adopted in Brazil and international financial reporting standards (IFRS). The data in this report refers to the performance for the forth quarter of 2018, compared to the same quarter of 2017, unless specified otherwise. HIGHLIGHTS Net Revenue: R$ 354.0 million in 4Q18, growth of 12.5.% compared to 4Q17, and R$ 1,249.0 million in 2018, down 1.1% compared to 2017. Gross Profit: R$ 133.7 milhões in 4Q18, growth of 11.7% compared to 4Q17, and R$ 448.6 million in 2018, down 7.0% compared to 2017. Gross Margin: 37.8% in 4Q18, down 0.2 p.p. in relation to 4Q17, and 35.9% in 2018, down 2.3 p.p. in relation to 2017. Net Income: R$ 46.2 million in 4Q18 vs. R$ 45.4 million in 4Q17, and R$ 152.1 million in 2018, down 19.5% compared to 2017. EBITDA: R$ 69.1 million in 4Q18 vs. R$ 70.4 million in 4Q17, and R$ 218.0 million in 2018 vs. R$ 296.5 million presented in 2017. VULC3 Quote (12/28/2018): Conference call: R$ 7.10 per share 03/12/2019 at 10 am (Brasilia time), at 9 am (New York). Number of shares Common: 245,756,346 Telephones Brazil: Market value +55 (11) 3193-1001 R$ 1.74 billion +55 (11) 2820-4001 Investor Relations IR email:
[email protected] Pedro Bartelle (IRO) Vulcabras Azaleia IR Website IR Telephone: +55 (11) 5225-9500 http://vulcabrasazaleiari.com.br/ 2 MESSAGE FROM MANAGEMENT 2018 brought many difficulties, but also brought the beginning of a significant partnership for the future of Vulcabras Azaleia.