Message from the CEO

MRS ends 2022 with an important milestone in its history: the approval of the early renewal of the concession until 2056. The amendment to the agreement marks the beginning of a new phase for the company, with the specific restructuring of internal areas and an increase in investments of around R$ 11 billion, which will provide various benefits to society, such as an increase in the railroad transport share in the Brazilian transport matrix, improved competitiveness for the domestic production sector, job creation, and heating up the economy.

Part of these investments has already started in 2022, such as the construction of the workshop that will provide the maintenance of the track equipment and the works to improve the railway access to the Port of Santos (such as the expansion of the yard), which will allow us to double the volume transported by the rail transport during the concession period.

With the expansion of the horizon for return of investments made in the railroad, MRS will double the General Cargo volume and multiply by seven the volume transported in containers over the new agreement period. In 2022, General Cargo transport reached 71 million tons, a new historical record, representing 40.2% of the total volume transported. The volume of pulp transported also grew (45.9%), due to the investments made in the Intermodal Complex in Pederneiras (SP). The total cargo volume showed a 4.9% increase versus 2021, reaching 178.2 million tons.

In a year marked by mood swings, both in the domestic market and in the foreign market, we achieved consistent results, with 26.3% increase in net revenue, which closed the year at R$ 5.6 billion. Our EBITDA expanded 15.4% in the period with 25% increase in net income.

Our ESG (environmental, social and governance aspects) agenda continues to evolve on different fronts. We set development goals that led us to the adoption of a series of indicators, which became part of the leadership variable compensation. We also defined a new strategic framework to govern the business guidelines, with developments already expected as from 2023.

In the environmental dimension, we invested around R$ 18.5 million in activities, monitoring, projects and processes. One of the highlights is the granting of the Gold Seal from Brazilian GHG Program, for the quality adopted in the last three inventories of greenhouse gas emissions, which certified the corporate inventory for reaching the highest level of qualification. Other achievement was the rise of the Carbon Disclosure Project (CDP) score, from D to C. We also carried out a survey of business climate risks and opportunities, following the TCFD methodology (Task Force on Climate Related Financial Disclosures).

In Social front, the first Diversity and Inclusion Census was performed, a survey that allowed the company to deeply understand aspects of the identity of its employees, as well as to capture their perceptions about the topics of diversity and inclusion and how the company is positioned and acts to promote them. Based on the results, we have already prepared two projects for 2023, mentoring for the career development of black employees and classes for discussing “masculinities” among male employees.

In 2022, we also recorded a significant increase in the female presence in leadership positions, from 362 to 448 women in 2022. The number of women in the Company increased almost 17%. The ethnic and racial diversity among our leaders also grew, reaching a total of 23% of black, brown and indigenous people in leadership positions and exceeding the target of 20% that we had set in 2021.

After the critical period of the pandemic, we resumed relationship actions with communities, entering into partnerships that resulted in 37 initiatives, such as construction and revitalization of leisure areas, urban mobility actions, construction and implementation of waste segregation and treatment plants, creation of community vegetable gardens and support for local social projects in municipalities in the states of Minas Gerais, São Paulo and Rio de Janeiro.

In terms of governance, we continue to improve our processes and controls and our integrity program, to ensure an ethical, transparent, structured company ready to absorb the challenges of the next cycle. Among the highlights are the implementation of management software and supplier control, which will allow us to better monitor the chain on ESG issues; the change in the management of the whistleblower channel, which is now managed by a specialized partner; and the investment in new technologies, process improvements, and awareness campaigns regarding data protection.

We made other important move in the governance structure of innovation projects, with the creation of the Digital Solutions area, which will be responsible for projects linked to the new concession contract and escalation of projects in the innovation flow.

MRS evolution in 2022 would not be possible without the dedication of each one of our employees, who remain committed to ongoing projects and planning those to come due to the renewal of the concession. We are very excited about the prospects for 2023, which promises to be a year of hard work and achievements for our Company.

Have a good reading!