1

2

Financial Highlights

EBITDA and EBITDA margin (R$ million and %)

Company Description

Brand of high-performance footwear, with world-class materials and technology.

Main Brands by segment

Founded in 1952, Vulcabras Azaleia is one of the largest footwear and sporting

goods companies in Latin America.

Manager of brands specialized in athletic footwear and women footwear in Brazil

with a vertically-integrated production model that ensures a competitive

advantage versus other players.

Its products are distributed throughout Brazil to more than 10.000 clients as well

as in several countries in Latin America.

Exports accounted for 8.6 % of net revenues in 2020

Publicly held Company in Novo Mercado (highest governance standards of B3).

Owner Olympikus brand, the largest athletic footwear brand of Brazil. Exclusive

representative of Under Armour in Brazil, one of the largest brands in the world

and Mizuno, with high performance products for all levels of athletes

Market Leadership

1º

2º

3º

Internacional

Brand 1

ATHLETIC FOOTWEAR OTHERS

Boots for industry.

Internacional

Brand 2

Largest sporting brands in Brazil in volume (4Q18)

Source: Kantar WorldPanel, Focal Pesquisas. 3

(1) Ex- Non-Recurring items and IFRS 16 ajust.

4

What we have achieved?

Unique brand

positioning

Very fragmented client base in Brazil:

more than 10,000 clients.

Well-defined strategy to serve each

sales channel.

Largest sales team in Brazil: 39

representative offices and more than

331 people (all segments).

Best sporting footwear supplier for

retailers.

Integrated

production

Vertically-integrated model ensuring

superior sales execution compared to

international brands.

o Lower average delivery time (5

weeks vs 6 months).

o Faster time to market (4 months

vs 12 months).

o Lower risk of inventory liquidation.

Capillarity of

Distribution

Strong

Innovation

culture

Largest R&D center in Latin America.

+600 people dedicated to R&D.

+ than 800 new models/year.

Award-winning products.

Performance tests made by

professional athletes scores compared

to international brands.

Olympikus

Largest sporting footwear brand in Brazil.

Smart choice: balance of high-quality and affordable prices.

Under Armour

One of the largest sports brands of the world.

Premium brand with innovation and performance focus.

Mizuno

Japanese brand with Global presence with high performance products

for all types of athletes.

Great growth potential.

1993-20152001-20071973-19931986-1990 1981-1992

1948 1882 1949 1916 1958

Brand foundation year

VA’s operation period

55

2018

2007

1996

1975

2021

1906

6

Source: Abicalçados.

Brazil is the 4th largest footwear consumer market and the 4rd

largest footwear producer in the world.

The global footwear production presented a healthy growth

over the last years (CAGR of 2.5% from 2016 to 2019E in

number of pairs).

The global footwear consumption has grown at a healthy

pace, in line with the growth of footwear production (CAGR of

2.2% from 2016 to 2019E in volume).

Global Consumption (billion of pairs) Top 10 Producers

Top 10 ConsumersHighlights

7

-

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

-5.000 5.000 15.000 25.000 35.000 45.000 55.000 65.000

Co

nsu

mp

tio

np

er

ca

pta

(u

nits

pe

r y

ea

r)

GDP per capta in 2017 (US$)

48.9%51.1%

Brazil Consumption Breakdown- 2018 (1)

Small and

Regional

Brands

Top 20

Brands

Analysis of annual footwear consumption and GDP per capita

Bubble size represents the country’s

total footwear consumption.

Brazil, including market

for flip flop sandals.

Brazil, excluding market

for flip flop sandals.

8

Source: Abicalçados e World Development Indicators, 2018.

(1) Only sports footwear in Brazil.

Per capita consumption is the growth pillar of the Brazilian footwear industry

Healthier habits

Brazil is the second

largest market of gyms

in the world, lagging

United States only...

...but less than 5%

of the Brazilian

population is

enrolled or go to

gyms regularly.

Gym growth market value

(Crescimento de receita)

Source: Companies financial reports, Google, ACAD Brasil e Marketline.

Note: (1) Revenues growth in reporting currency.

(2) Total includes the average of Under Armour, Nike, Adidas, Asics, Puma, Mizuno and Skechers. 9

Global sport brands have seen a strong long-term growth in revenues (1)

According to Marketline data, the growth of the fitness

market in Brazil in recent years by averaged 10.4%,

reaching U$ 2.9 billion.

Meanwhile in the global market the average growth

was 4.3% in the same period and the USA 2.4%.

10,0%

3,6%

14,1% 14,4%

2015 2016 2017 2018

CAGR +10.4%

2014-2018

10

1

.

CONSUMERS KNOWLEDGE AND PREFERENCE OF OLYMPIKUS’S BRAND

100%

23%

52%

84%

Olympikus is one of the brands frequently used

Has already used Olympikus

Know Olympikus

SPORTING EVENTS

MEDIA: TV, PRINTED E SOCIAL

Prefer to use Olympikus

SOURCE: KANTAR MILLWARD BROWN. RESEARCH DONE ON November, 2018.11

BRAND AMBASSADORS

Source: 2020 Annual Report - Under Armour’s IR website.

12

13

Fonte: Companhia, 14

1

More than 60 promoters

exclusively dedicated to

merchandising activities.

Examples of merchandising activities: store fronts and interior of storesHIGHLIGHTS

Brazilian footwear market is very

fragmented and mainly

composed by small/regional

retailers.

Marketing efforts at the POS is

one of the strategies to promote

the brand and drive sales.

More than 40,000 store sellers

trained per year by Vulcabras’

team.

15Note: (1) Point of Sale(POS).

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Model

Product DevelopmentProduction Sales and Distribution

1

Proprietary technologies

Product innovation

Own R&D center

Great flexibility

Significant installed capacity to

support growth

Infrastructure ready for new

investment in machinery and

equipment modernization

Fragmented client base

Domestic and international

distribution

Salesforce with more than 331

professionals

Strong Competitive Advantage

31 2

17

Sales representatives breakdown per region

39 representative offices with 331 people dedicated to

sales and merchandising, 14 Key Accounts and more than

60 sales promoters.

# Representation office

Complete show-rooms throughout Brazil

Northeast

9

Southeast

11

South

8

Mid-West

5

North

6

1

Highly diversified client base: three largest clients represent about 17% of Company’s sales.

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Olympikus Representative Olympikus Representative

Under Armour Representative Under Armour Representative

Mizuno Representative Mizuno Representative

1

Product

offering

Products sold

Low

price

Medium

Price

Low

Price

Medium

Price

High

Price

Integrated to

sales systems

Auto-service and

Customers E-commerceSporting goods stores Department stores Own E-commerceFootwear stores

17.8%% Of 2020 sales 53.2% 15.9% 7.8% 5.3%

Low

price

Low

price

Low

Price

Medium

Price

High

Price

19

Sneakers

Shoes

Flip Flops

Sandals

Slippers

Accessories

Apparel

(*) Data based on the Domestic Market.

1

20

2

Average delivery time

Time to market

Delivery schedules

Risk of inventory

liquidation

Retail mark-up

Increase in business

6 months

12 months

No flexibility

(12 pairs or more)

High

None, in the case of sell

offs

No replacement in less

than 6 months

International BrandsAccording to our assessment

5 weeks

4 months

Flexible

(6 pairs or more)

Low

Until last pair

Prompt replacement

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2

22

*Nota: quadro no final de 2020

Production plant: sports and women's shoes, boots

and components

3,873 employees

14,550

Total number of

employees

Parobé (RS)

221 employees

Production plant: components and sports shoes

9,381 employees

Itapetinga (BA) Horizonte (CE)

Peru / Colômbia

R&D center : 454 employees

Others: 371 employees Office: 157 employees / 70 UA stores

Jundiaí (SP)

3

Vale dos Sinos: “Milan of Brazil”

+600 people dedicated to the

development process

Development capacity Awards Production synergies

From product conception to arrival at stores, it

takes only 4 months for the Company to

identify trends and launch new products

Research fashion in trade fairs: Bread and

Butter/ Berlin, SPFW – São Paulo Fashion

Week, and others

Strong innovation culture and well-

established development process

Monitoring of the press: websites and

online media focused on the fashion

trends and consumer behavior

Search in catalogued collection:

collections catalogued since 1976

~R$30 mn invested in R&D / year

More than 800 new models

developed per year

Large technology and development

center in Latin America

Focused on local trends

Exclusive collections

R&D development process

100% integrated with

production

4

5

1

2

3

6

7

Best Buy / Best Product Update

2009, 2015, 2018 and 2019

Best Buy

2015, 2016

Olympikus 2013

Top of

Mind

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24

F I N A N C I A LPerformance

EBITDA (R$ million) and EBITDA Margin (%)Net Revenue (R$ million)

Cash and Net Debt – 2020 (R$ million)Net Income (R$ million) and Net Margin (%)

25(1) Ex- Non-Recurring items and IFRS 16 ajust.

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