Welcome – Message from the CEOs

Welcome: A message from the CEOs

A worthy legacy is built every day.

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Why is sustainability important?

This question has always been in MRV&CO’s ESG path. In our sustainability maturity journey, ideas and initiatives have evolved and expanded along with the answers we have sought from our very beginnings

All MRV&CO companies have sustainability in their DNA. For over four decades, MRV has always been founded on the idea of returning benefits and values to society; Sensia, which recently completed its first year, was built on a solid sustainable foundation; Luggo, AHS, and Urba, with bold and connected business models, offer innovative approaches to living.

These companies, each in their own stage of sustainability maturity, have the ESG agenda in their core operations. This is what the housing market requires: we must understand the needs of our time, as well as the transformations, and keep in mind that positively impacting our stakeholders and society as a whole are requirements that cannot be severed from real, actual results For a true, worthy legacy.

This is an ongoing construction process. At our core, we have very well-structured, ethical, and straightforward Governance. As of now, we are the first and only developer and construction company to have received the Pró-Ética Seal – largely due to our Integrity Program and our commitment to transparency, equity, and corporate responsibility, but also because we see ESG not as an idea – but as something very tangible in our daily lives

In the Social pillar, our work is foundational. Our solutions portfolio focuses on something essential: housing, the very foundation for access to conditions pertaining to dignity and quality of life: safety, sanitation, energy, mobility, etc. A foundation also for families, communities, cities, and the economy. It is a great responsibility for us; as a Housing Platform, we not only deliver real estate projects, but we also offer more meaning to each person’s life

The housing deficit is one of the strategic parameters related to the challenges we face on a regular basis: in 2021, we launched approximately 44,600 units (over 20% more than in 2020); 86.7% of them were sold last year.

Education is also paramount to the Social pillar. Significant investments in initiatives such as the MRVInstitute – with annual contributions of 1% of the company’s profit – reflect our stance regarding the significance of the topic for achieving a consciousand sustainaable society. Also, education is seen in a very broad way: as formal education, with consolidated projects for schools and educators; as professional education, with employee training in our companies; and as civil education, based on the ability to reach people through our companies and products around

for life in society and the preservation of the planet. Still on this subject, here’s a 2021 milestone we are proud of: our Escola Nota 10 program celebrated its first decade graduating 4,000 students and more than BRL 4 million in investments. We achieve things today for lasting results.

And as we talk about life in society, we’re also talking about Neighborhoods – and we can create several benefits. With programs such as Vizinho do Bem (“The Good Neighbor”), we actively participate by engaging people, building urban infrastructure, and developing our neighborhoods – and, consequently, our cities, regions, and communities. We know we can always do more: the legacy mindset points to broad actions, and perpetuity is a keyword.

Diversity is also part of this equation, and we are working towards it by demystifying the idea that construction is a male environment, by training women to work on construction sites, too; by encouraging inclusion and equity in our staff; by taking inspiration from excellent examples to launch our first Trainee Program aimed at Black professionals. Here, the idea is to expand more and more with new actions and practices: there is a lot to learn and to be done. As for the Environmental pillar, we are aware that our sector implies potentially serious environmental impacts – especially when the entire chain is considered. In this sense, to keep having a positive impact on the lives of thousands of people, we are constantly improving ourselves. How do we reduce

negative environmental impacts while our companies and businesses grow increasingly?

For us, Operational Efficiency is the answer.

We understand that the strength of the MRV&CO Group opens room for the entire civil construction industry to evolve together when it comes to environmental issues. And we like to drive this evolution – thinking about operations in an innovative way so that our construction sites become more attainable and sustainable; studying and developing more efficient construction processes; mobilizing our chain to reduce negative impacts; and seeking solutions that may achieve projection and applicability in different contexts.

By 2030, we intend for all our developments to have some self-generation energy alternative, such as photovoltaic systems installed on their roofs and partnerships with companies offering rebates or solar farms for the condominiums’ communal areas – an initiative that generates savings for customers and is also crucial to reduce greenhouse gas emissions, in line with the commitment made with the Science Based Target Initiative. Also, we have invested in our own photovoltaic plants to serve construction sites, offices, and points of sale: the plant in Uberaba, MG, is already in operation, with anannual energy generation potential of 1,125 MWh; and in March 2022, we started operations in our plant in Bahia, with an annual generation potential of 489.7 MWh.

As for water, we seek solutions for our consumption and that of our customers. With the goal of reaching 500,000 new housing units by 2030, we must evaluate ways to mitigate impacts on the use of water resources – among them, reuse. In 2021, the Water Reuse System for new MRV&CO projects stood out among the three best projects in INOVA 2030 – Young SDG Innovators, promoted by the UN.

To achieve all this on an ongoing basis, robust financial results are paramount. In 2021, MRV&CO had a record-high net profit of BRL 805 million, from an also all-time high of BRL 7.12 billion in sales

AHS, our US-based company, stood out with BRL 1.75 billion in annual OSV (Overall Sales Value); Luggo shows great promise, especially after the agreement reached with Brookfield Asset Management for the acquisition of more than 5,100 units; and Urba had a 148.7% increase in units sold over the previous year.

It is also essential to clearly communicate our steps on the ESG journey. By speaking and being heard, MRV&CO strengthens itself as a protagonist of change. Communicating transparently and efficiently engages people, attracts talent, and mobilizes individuals and institutions. Sharing learnings and talking

about our advances in sustainability

– they all echo the ESG agenda. And when we take the front seat in discussions on sustainability, we make commitments that drive our companies to be ever more conscious and responsible. A virtuous cycle: each new challenge inspires us to go further. This is MRV&CO’s current sustainability scenario.

A reality we did not build alone but with the

engagement of all our stakeholders. Together, we dream and conquer every stretch of this road into the future. In this journey, we consolidated our vision and strategy, evolving as a sustainable group. What we design today builds what we will be in five, ten, or many more years; and growth is what we envision for our future

This is growth that will provide us with the energy to always find more and better answers to that initial question and to turn it into a legacy. Growth is what gives MRV&CO the capacity, sensitivity, and opportunities to make a difference.

Rafael Menin e Eduardo Fischer — Presidentes