ABIQUIM: Associação Brasileira da Indústria Química .

Abraf: the Brazilian Association of Producers of Formaldehyde and its Byproducts.

Formic Acid: Formic acid, or officially, methanoic acid, CH2O2, molecular mass 46u, is a monocarboxylic acid with the structural formula H – COOH. It is the simplest of organic acids.

Apolo Tubos e Equipamentos S.A.: A closely held corporation headquartered in the state of Rio de Janeiro, mainly engaged in exploring the steel industry (in all its modalities), with interests in other companies, either as a partner or a shareholder. GPC Participações holds 47.9% of the share capital of Apolo Tubos e Equipamentos S.A

BR GAAP: an acronym for the Brazilian Generally Accepted Accounting Principles.

CAGR: Compound Annual Growth Rate.

CCB: Bank Credit Note. It consists of a negotiable instrument issued, by an individual or legal entity, in favor of a financial institution or similar, representing a promise of payment in cash, arising out of a credit transaction of any type.

CDI: Interbank Deposit Certificates. These are securities issued by financial institutions, backing interbank market transactions.

COFINS: Contribution for Social Security Financing. A federal tax contribution levied on the gross revenue of companies in general to finance social security. Companies under by the taxable income are taxed at 7.6% (non-cumulative system) while other companies are taxed at 3.0%. Its tax base is the monthly revenue (gross revenue from the sale of goods and services) or the total revenue of legal entities.

CPC: Accounting Pronouncements Committee

CSL: Social Contribution on Profits.

CVM: Brazilian Securities and Exchange Commission. CVM has powers to regulate, standardize, and oversee the activities of the various market participants

EBITDA: Earnings Before Interests, Taxes, Depreciation, and Amortization.

Bylaws: Company Bylaws. Document that structures and regulates the operations of an organization.

Ex-ImBank: Export-Import Bank – USA. The Eximbank works as an independent U.S. government agency to facilitate the financing of exports of U.S. products and services by absorbing credit risks that are beyond the reach of the private banking segment. All of Eximbank’s obligations are backed by the full reliability and credit of the U.S. government.

Formiato de Sódio: Sodium formate or sodium methanoate is a chemical compound (sodium salt of formic acid) with chemical formula HCOONa and molecular weight of 68. It is a white, crystalline powder with a faint smell of formic acid.

Formaldehyde: Is one of the most common chemicals currently used. It is the simplest aldehyde with chemical formula H2CO, whose official name is IUPAC methanal.

Reference Form: Annual accounting document submitted to the CVM. It provides information on the companies’ main economic and financial indicators, as well as a summary of the main accounts of the financial statements and other relevant information about the companies’ operating activities.

Free Float: Number of shares of a company available for trading in organized markets such as BM&Fbovespa.

Natural Gas: A mixture of light hydrocarbons, with a high content of methane that remains in a gaseous state under normal conditions of temperature and pressure. Natural gas is directly obtained from oil or gas reservoirs.

Corporate Governance: The processes, conventions, policies, and laws that govern how organizations are managed, involving the relationships between its stakeholders (shareholders, Board of Directors, Executive Board, and control bodies).

GPC Química S.A: A privately held company whose main purpose is the industrialization of thermosetting resins for the reconstituted timber panel industry (plywood, MDP, MDF, and OSB), varnishes for flooring, and the production of formaldehyde. The Company has four world-class industrial plants, three of which for the production of thermosetting resins strategically located in Araucária (Paraná), Uberaba (Minas Gerais), and Gravataí (Rio Grande do Sul), and another plant located in Rio de Janeiro for the production of methanol. It also produces alkyd resins (basic input for the paint industry) in its industrial unit in Gravataí (Rio Grande do Sul). GPC Participações holds 89.8% of the share capital of GPC Química.

Hexamethylenetetramine: The hexamethylenetetramine (C6H12N4), also known as “hexamine”, “methenamine”, “urotropine”, etc., is a white powder with a sweetish taste and smell that resembles ammonia, which is very soluble in water

IASB: International Accounting Standards Board

IBRACON: Institute of Independent Auditors of Brazil

ICMS: Sales and Services Tax.

IFC: International Finance Corporation.

IFRS (International Financial Reporting Standards): International Accounting Standards. A set of international accounting pronouncements published and revised by the International Accounting Standards Board (IASB).

IGP-M: General Market Price Index.

Petrochemical Industry: Petroleum-based chemicals industry. Petrochemical industry products include paraffins, resins, olefins, aromatic hydrocarbons and their derivatives.

Interim Financial Information – ITR: Quarterly accounting document to be submitted to the CVM.

IPCA: Extended National Consumer Price Index.

IPI: Tax on Industrial Products.

Interest on Equity: Cash amount distributed to shareholders, in proportion to the number of shares held. It is a financial expense for the Company, deductible from the Income Tax base.

Libor:  London Interbank Offered Rate. It is the London interbank market rate, i.e. the prime interest rate offered to large loans between international banks that operate with Eurodollars.

EBITDA Margin: Indicator that relates EBITDA to Net Revenue (EBITDA Margin = EBITDA / Net Revenue).

Market Cap (Market Capitalization): Market Value. It is the value of the share traded on the stock exchange multiplied by the number of existing shares in a publicly held company.

MDF: : Medium Density Fiberboard. MDF, a medium-density fiberboard, is a panel produced from wood or other natural fibers joined with a synthetic resin or another appropriate agglomerate. It is produced to have a specific weight from 496 kg/m3 (density = 0.50) to 880 kg/m4 (density = 0.88), and other materials can be added during production to improve some properties.

MDP: Medium Density Particle. The main difference between MDP and MDF panels is that particles are used instead of wood fibers in MDP panels. The thinner particles remain on the surface of the panel and the ticker ones in the core. Its medium density defines its identity.

Methanol: Methanol, also known as methyl alcohol, is a chemical compound with chemical formula CH3OH. It is liquid, flammable, and has an invisible flame. Methanol, or wood alcohol, can be prepared by the dry distillation of wood, its oldest obtaining process and from which it was exclusively obtained for a long time. It is currently obtained by the reaction of synthesis gas (produced from fossil origin, such as natural gas), a mixture of H2 and CO over a metal catalyst at high temperatures and pressures.

NPG: Neopentyl glycol.

OSB: OOriented Strand Board. OSB is a multi-layered oriented strand board made from wood chips of predetermined shape and thickness bonded together with adhesives. The strands of the external layers are aligned and parallel to the panel’s length, while the strands of the internal layers may be oriented randomly or aligned, usually perpendicular to the external layers.

Pentaerythritol: An organic compound with the formula C(CH2OH)4. This white, crystalline polyol is a “building block” in organic synthesis for the preparation of several polyfunctional compounds, such as the explosive PETN and pentaerythritol triacrylate. Pentaerythritol derivatives are components of alkyd resins, varnishes, PVC stabilizers, tall oil esters, and antioxidant olefins.

Petroleum: An oily and flammable substance composed mainly of hydrocarbons that is less dense than water. It is used as the base for the manufacture of several products such as gasoline, naphtha, kerosene, lubricants, etc.

PIS: Social Integration Program.

PTAX (Dólar): Exchange rate calculated and disclosed by the Central Bank of Brazil at the end of each day. It is the average rate of all daily trades in dollars carried out in the interbank exchange market.

REFIS: Tax Recovery Program. It is an optional regime for installment payment of tax debts offered to legal entities in default before the Internal Revenue Office, Office of the General Council for the National Treasury, and National Institute of Social Security.

Alkyd Resins: Polymers used in the paint industry.

SELIC: Average daily financing rate backed by federal bonds, calculated in the Special System for Settlement and Custody.

STF: Federal Supreme Court.

STJ: Superior Court of Justice.

Ammonium Sulfate: It is an inorganic compound used as fertilizer and its formula is (NH4)2SO4. It contains 21% of nitrogen in the form of ammonium ions and 24% of sulfur in the form of sulfate ions. Ammonium sulfate occurs naturally in the rare mineral mascagnite in volcanic fumaroles and as a result of coal burn.

TJLP: Long-Term Interest Rate.