Financial Statements Itaúsa Headquarters | Paulista Avenue - São Paulo/Brazil Financial Statements December 31, 2020 Itaúsa S.A. 1 Financial Statements Contents MANAGEMENT REPORT ...................................................................................................................................................................................... 3 ITAÚSA’S MANAGEMENT .................................................................................................................................................................................. 17 FINANCIAL STATEMENTS .................................................................................................................................................................................. 18 NOTES TO THE FINANCIAL STATEMENTS .................................................................................................................................................. 24 1. OPERATIONS ...................................................................................................................................................................................................... 24 2. BASIS OF PREPARATION AND PRESENTATION ................................................................................................................................... 25 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ...................................................................................................................... 29 4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT ..................................................................................................................... 38 5. CASH AND CASH EQUIVALENTS ............................................................................................................................................................... 45 6. MARKETABLE SECURITIES ............................................................................................................................................................................. 45 7. TRADE ACCOUNTS RECEIVABLE ................................................................................................................................................................ 46 8. INVENTORIES ..................................................................................................................................................................................................... 47 9. DIVIDENDS AND INTEREST ON CAPITAL RECEIVABLE ..................................................................................................................... 47 10. OTHER TAXES FOR OFFSET AND PAYABLE ......................................................................................................................................... 48 11. OTHER ASSETS AND LIABILITIES ............................................................................................................................................................. 49 12. BIOLOGICAL ASSETS ..................................................................................................................................................................................... 49 13. DEFERRED INCOME TAX AND SOCIAL CONTRIBUTION ................................................................................................................ 51 14. RIGHT-OF-USE AND LEASES ..................................................................................................................................................................... 53 15. INVESTMENTS ................................................................................................................................................................................................. 55 16. PROPERTY, PLANT AND EQUIPMENT (PPE) ........................................................................................................................................ 61 17. INTANGIBLE ASSETS ..................................................................................................................................................................................... 62 18. TRADE ACCOUNTS PAYABLE .................................................................................................................................................................... 64 19. DEBTS ................................................................................................................................................................................................................. 65 20. DEBENTURES ................................................................................................................................................................................................... 67 21. PROVISIONS AND CONTINGENT ASSETS AND LIABILITIES ......................................................................................................... 68 22. EQUITY ............................................................................................................................................................................................................... 71 23. NET REVENUE .................................................................................................................................................................................................. 75 24. RESULT BY NATURE ...................................................................................................................................................................................... 75 25. OTHER INCOME AND EXPENSES ............................................................................................................................................................ 76 26. FINANCE RESULT ........................................................................................................................................................................................... 76 27. INCOME TAX AND SOCIAL CONTRIBUTION ...................................................................................................................................... 77 28. EARNINGS PER SHARE ................................................................................................................................................................................. 77 29. SHARE-BASED PAYMENT ........................................................................................................................................................................... 77 30. EMPLOYEE BENEFITS .................................................................................................................................................................................... 79 31. SEGMENT INFORMATION .......................................................................................................................................................................... 83 32. RELATED PARTIES .......................................................................................................................................................................................... 85 33. NON-CASH TRANSACTIONS .................................................................................................................................................................... 87 34. ADDITIONAL INFORMATION .................................................................................................................................................................... 87 35. SUBSEQUENT EVENTS ................................................................................................................................................................................. 88 INDEPENDENT AUDITOR’S REPORT .............................................................................................................................................................. 91 OPINION OF THE FISCAL CONCIL .................................................................................................................................................................. 96 SUMMARIZED MINUTES OF THE MEETING OF THE BOARD OF OFFICERS ................................................................................... 97 Itaúsa S.A. 2 Management Report We present the Management Report and the Individual and Consolidated Financial Statements of Itaúsa S.A. (Itaúsa) for the fourth quarter of 2020 (4Q20) and for the fiscal year 2020. These Financial Statements were prepared in accordance with the standards established by the Accounting Pronouncement Committee (CPC) and approved by the Brazilian Securities and Exchange Commission (CVM), as well as the International Financial Reporting Standards (IFRS). Independent auditor’s report The Financial Statements were audited by PricewaterhouseCoopers Auditores Independentes (PwC) and have received an unqualified opinion from the external auditor. The Financial Statements were approved by the Fiscal Council. The Financial Statements were made available to the market on the websites of Itaúsa, B3 S.A. – Brasil, Bolsa, Balcão (“B3”), and the CVM (Brazilian Securities and Exchange Commission). 1. Message from Management As a result of the Covid-19 pandemic, the socioeconomic dynamics in the world have been through quite a change in 2020, prompting responses from government and central banks, including Brazil’s, with the provision of relief aids and stimulus packages aimed at mitigating the economic impacts from such