Glossary

Adjusted EBITDA: Adjusted EBITDA consists of EBITDA adjusted for nonoperating expenses and tax incentives. The tax incentives, which reduce Metalfrio´s cash tax liabilities, are credited directly to shareholders’ equity and do not have an impact on its net income. The management considers it appropriate to adjust EBITDA with respect to these tax incentives, because the Company recognizes the integral amount of the ICMS expense in its statement of income, and the reduction of ICMS payable resulting from tax incentives is recorded directly against its shareholders’ equity under “Capital Reserve - Tax Incentives.” Similar to EBITDA, Adjusted EBITDA is not a financial performance measure calculated in accordance with Brazilian GAAP or U.S. GAAP, and it must not be considered as an alternative to net income as an indicator of operating performance, or as an alternative to operating cash flows as an indicator of liquidity. Adjusted EBITDA is not calculated using a standard methodology and may not be comparable to the definition of Adjusted EBITDA or similarly titled measures used by other companies.

Metafrio disclose the Adjusted EBITDA because it is used to measure the Company´s performance and because it is considered a useful measure that is frequently used by capital market analysts, investors and others to evaluate companies like Metalfrio.

However, Adjusted EBITDA presents limitations that impair its use as a measurement of Metalfrio´s profits since it does not consider certain costs arising from the Company´s business that might significantly impact its results of operations and liquidity, such as financial expenses, taxes, depreciation, capital investments and other related charges.

Arbitration Chamber: Market Arbitration Chamber established by the Bovespa for resolution of disputes between companies and its investors.

Bovespa: São Paulo Stock Exchange (Bolsa de Valores de São Paulo).

BR GAAP: Accounting practices adopted in Brazil, or Brazilian GAAP or Brazilian Corporation Law.

CAGR: Compound Annual Growth Rate.

CBLC: The Brazilian Settlement and Custodial Company (Companhia Brasileira de Liquidação e Custódia).

CKD System: System for assembling equipment through the assembling of pre-fabricated components.

Company or Metalfrio: Refers to Metalfrio Solutions S.A.

CVM: The Brazilian Securities Commission (Comissão de Valores Mobiliários).

EBITDA: EBITDA consists of net income before net financial income (expenses), income and social contribution taxes, depreciation and amortization. EBITDA is a financial performance measure used by Metalfrio’s management. EBITDA is not a financial performance measure calculated in accordance with Brazilian GAAP or U.S. GAAP, and it must not be considered as an alternative to net income as an indicator of operating performance, or as an alternative to operating cash flows as an indicator of liquidity. EBITDA is not calculated using a standard methodology and may not be comparable to the definition of EBITDA or similarly titled measures used by other companies. The Company disclosers its EBITDA because it uses it to measure its performance and because Metalfrio considers it a useful measure that is frequently used by capital market analysts, investors and others to evaluate companies like Metalfrio. However, EBITDA presents limitations that impair its use as a measurement of our profits since it does not consider certain costs arising from the Company´s business that that might significantly impact its results of operations and liquidity, such as financial expenses, taxes, depreciation, capital investments and other related charges.

IFRS: International Financial Reporting Standards.

Plug-in: equipment with a non-fixed integrated cooling system (non remote), which uses energy from the public distribution network through a direct energy source (socket) and which dispenses with the need for a powerhouse.

Real, Reais or R$: refers to the Brazilian real, the official currency of Brazil

Regulation S: Rule promulgated under the U.S. Securities Act of 1933, as amended, or the Securities Act, related to institutional and other investors outside the United States and Brazil that are not U.S. persons.

Rule 144A: Rule promulgated under the U.S. Securities Act of 1933, as amended, or the Securities Act, related to qualified institutional buyers of the United States.

SEC: Securities and Exchange Commission.

Securities Act: United States Securities Act of 1993, as amended.

U.S. dollar, U.S. dollars or US$: the official currency of USA.

US GAAP: Generally Accepted Accounting Principles in the United States.