In 3Q2023, Ambipar Response (hereinafter referred to as "Response" or "the Company") continued executing the growth plan and integration efforts of its acquisitions.

Our revenues and margins have performed satisfactory across regions. Notably, we have executed cleaning and fire fighting for the agricultural industry across the US, Canada and Brazil. We have also been developing great capabilities in tank cleaning both onshore and offshore.

We are satisfied with the margins presented YTD on Response. There are still pockets for margin improvements in the longer term in US and Canada. In Brazil we kept investing our time and efforts on improving cross-selling and growing upon the existing asset base.

During 3Q23 we turned 5 companies into SAP, and we keep on deploying our proprietary software to induce cross-selling opportunities (SIGA). Our goal is to create a business system as efficient as possible, that optimizes for our companies and allows them to become ever stronger as part of the Response ecosystem.

The opportunity to consolidate a fragmented market where clients demand reliability, stand by capacity and quality of service is strong across our regions. We’ll invest organically and, probably to a lesser extent, inorganically, to develop our reach within the territories and supply chains we already provide for.

As usual, we thank shareholders for their belief in our mission and support on the multiyear journey to consolidate the hazardous services landscape thus minimizing human impact on the environment.

Sincerely,

Your Chairman of the board Ambipar Response has 4 businesses units:

1.Emergency response: specialist in crisis management and response to environmental emergencies, with command coordinated by a control center, managing services simultaneously, scalable and standardized. It has 5 HAZMAT training camps, training person according to National Technical Standards Fire Protection Association (“NFPA”, in the USA), a reference in the development of technical standards for emergency response. Also comprises Fire Response for the prevention and combat of forest and industrial fires and Medical Response to emergency medical care services.

2.Marine response: port support solutions, such as transporting people, material and ranch, dredging support, preventive fencing and emergency bases. It also offers solutions for maritime support, such as transporting materials to platforms, combating oil spills, chase-boats for seismic vessels, and vessels for FPSO support (Floating production storage and offloading).

3.Industrial response: meets demands for cleaning, maintenance, decontamination and treatment, painting of industrial and naval tanks, which typically involve a hazardous environment or material. It also performs decommissioning of FPSOs, vessels, platforms and industrial plants. It can perform these services for radioactive materials as well.

4.Environmental response: rehabilitation of fauna and flora, licensing, auditing and environmental due diligence, soil remediation, risk study, preparation and execution of environmental monitoring programs. Team formed by biologists, oceanographers, geologists, geographers and engineers.

For more details, watch the institutional video.

* 9M23 EBITDA and EBITDA margin adjusted to exclude extraordinary expenses and non-cash from NYSE American listing.

Our operations had revenue variations as expected. Gross revenue reached R$703 million in 3Q23, 62.7% higher than 3Q22 and up by 6.4% compared to 2Q23.

The organic growth measured by the quarterly gross revenue variation of companies and operations that have been for 12 months or more in the Ambipar group compared to the same quarter last year, reached 19%. The markets of Brazil, western Canada and the Gulf region in the USA may be highlighted.

•Gross Revenue in Brazil grew in all comparisons, mainly driven by the provision of scheduled industrial services and emergencies in the road and rail sectors.

•The average ticket rose YoY and QoQ reflecting higher complexity of attended services.

•This result is related to the integration and cross-selling between the business areas.

COMPOSITION OF GROSS REVENUE R$ million			3Q23			3Q22			Chg. 3Q23 x3Q22			2Q23			Chg. 3Q23 X2Q23			9M23			9M22			Chg. 9M23 x 9M22
RESPONSE
GROSS REVENUES			702.6			431.8			62.7		%	660.4			6.4		%	1,990.1			1,145.5			73.7		%
International			431.8			272.4			58.5		%	415.9			3.8		%	1,266.1			750.8			68.6		%
Latam (ex-Brazil)			61.7			44.1			39.8		%	54.3			13.5		%	171.8			160.7			6.9		%
Subscriptions Latam			35.8			34.6			3.7		%	34.6			3.6		%	106.5			100.2			6.3		%
Services Latam			25.8			9.6			170.0		%	19.7			30.9		%	65.3			60.5			7.9		%

•Latam gross revenue had a negative exchange rate impact between 2Q23 vs. 3Q23, due to the 7.9% appreciation of the Real against the Chilean Peso. On a Local currency view, Revenues showed slight growth.

•The good result in profitability of the operation in Chile stands out, which benefited from services for large clients in the mining, engineering and steel industry.

•In Europe, we saw a quarterly drop in revenue, due to lower industrial demand and fewer railway emergencies and coast guard services.

•On the positive side, we have become emergency response suppliers for data center companies in Europe.

•The operation has shown satisfactory profitability, there was an emphasis on winning contracts with better margins in industrial services, compensating for the drop in revenue.

•The region puts Ambipar in a position to capture contracts across EMEA.

•North American operations continue its growth trajectory in industrial and emergency services, with emphasis on performance in Texas, which has provided services to the agricultural market.

•In Canada, services for the oil and gas industry and infrastructure stand out.

•The variation in net revenue accompanied the evolution of gross revenue by geography, and the revenue deductions for each region. There was no significant change in the tax structure of each market, with higher deductions in the Brazilian market than in the international market.

Costs remained stable as a percentage of revenue when comparing 3Q23 vs. 2Q23, reflecting the company's business mix. There were no highlights in the composition of costs in this quarter. The largest cost components – Personnel, Third Parties, Maintenance, Fuel and Travel – represented more than 85% of total costs.

Rental costs were reversed this quarter, due to the reclassification of expenditure relating to 2023 of operations in North America, which did not adopt the IFRS 16 standard.

Gross profit grew over 3Q22. Gross margin for 3Q23 reached 30.0%, a result of 1.0 pp. higher than 3Q22 and up by 4.2 pp. compared to 2Q23. The improvement in gross margin in relation to 2Q23, is due to better performance in Brazil and Canada.

It is worth noting that part of the margin increase in 3Q23 is due to the accounting adjustment to IFRS 16 carried out in this period and will not be recurring.

* 1Q23 EBITDA and EBITDA margin adjusted to exclude extraordinary expenses and non-cash from NYSE listing EBITDA registered a 69.7% growth in the 3Q23 versus 3Q22.

The 3Q23 EBITDA margin remained in line with the previous quarter's level, excluding the impact of the reclassification of rental costs.

In 3Q23, Ambipar Response presented a negative net financial result of R$42.4 million, R$5.9 million higher resulting from the increase in interest rates and the increase in debt, compared to 3Q22. The debt increase was mainly due to the capital allocation on capex and M&A.

Ambipar Response registered net income of R$53.7 million in 3Q23, with a net margin of 8.4%.

Compared to the same quarter of the previous year, net income grew by 53%, with a reduction of 0.4 p.p. in net margin. Profit growth derives from the growth in operations, while the drop in margin is explained by the negative financial result and the contribution of business segments and regions to the consolidated result.

The portion of net income allocated to non-controlling shareholders grew in 3Q23, as we made several acquisitions of companies throughout the year of 2022 where founding partners remain in the business as minority shareholders. This way of carrying out acquisitions ensures that we maintain expertise and continuity in the acquired companies, and it is a form of long-term alignment.

On September 30, 2023, financial gross debt reached the amount of R$ 1,194.0 million, a reduction of R$ 124.2 million in relation to the balance determined on December 31, 2022, mainly due to the amortization of debentures and funding of loans and financing. Considering Related Parties, the total amount of gross debt was R$ 1,828.3 million a reduction of R$ 259.6 million.

Financial Leverage based on Covenants criteria reduced from 1.51x to 0.93x in the comparison between December 2022 and September 2023, due to the cash generation related to the Company's IPO occurred in March. Also in September 2023, considering Related Parties loans, the leverage was reduced from 2.59x to 1.76x.

1Calculated as the EBTIDA for 3Q23 multiplied by four.

2Considers the amount of related Parties Loans.

The debt maturity schedule has its most relevant portion in the year 2027.

*    Considers Related parties’ loans.

1Considers a 30% tax rate;

2Disregard intangibles

Return on Invested Capital minus intangible assets (“operating ROIC”) allows for an approximate estimate of the return on investments made in operations.

Return on Invested Capital (“ROIC”), which incorporates intangible assets into the invested capital base, mainly composed of goodwill paid for acquisitions.

M&A investment, at first, presents a lower ROIC, due to goodwill paid on acquisition. Once acquisitions become part of our operations, the expected return on the marginal investment made tends to follow the Operating ROIC, since the invested capital is allocated to the acquiree's operations and does not include goodwill.

In the medium term, therefore, we expect convergence between the company's ROIC and the operational ROIC.

In 3Q23, addition of Fixed Assets was R$75.6 million. In Response, we invested in Latin America in the new training camp in Chile and in Brazil, we acquired equipment to support the expansion of the operation, mainly for air support services. Helicopters support fire fighting operations, surveillance for deforestation and medical support on remote areas. We continued investing in vehicles for industrial services and emergency response in North America.

*    9M23 EBITDA and margin excludes extraordinary expenses and non-cash from NYSE American listing.

1Calculated as the EBTIDA for 3Q23 multiplied by four.

1Income tax adjustment is defined as operating profit for the period multiplied by our normalized effective tax rate for the period, the numerator of which is income tax and social contribution and the denominator of which is profit before tax.

2Considers the sum of the last 4 quarters.

3Considers the average of the last 5 quarters.