PPLA Participations Ltd. - Interim / Quarterly Report 2023

(A free translation of the original in Portuguese)

PPLA Participations LP.

Interim financial statements at

June 30, 2023

and report on review

(A free translation of the original in Portuguese)

Report on review of interim

financial statements

To the Board of Directors and Shareholders

PPLA Participations LP.

Introduction

We have reviewed the accompanying interim balance sheet of PPLA Participations LP. ("Company") as

at June 30, 2023 and the related statements of income and comprehensive income for three and six-

month period then ended, and the statements of changes in shareholders' equity and cash flows for

six-month period then ended, and notes, comprising significant accounting policies and other

explanatory information.

Management is responsible for the preparation and fair presentation of these interim financial

statements in accordance with the International Accounting Standard (IAS) 34 - "Interim Financial

Reporting", issued by the International Accounting Standards Board (IASB). Our responsibility is to

express a conclusion on this interim financial statement based on our review.

Scope of review

We conducted our review in accordance with Brazilian and International Standards on Reviews of

Interim Financial Information (NBC TR 2410 - "Review of Interim Financial Information Performed

by the Independent Auditor of the Entity", and ISRE 2410 - "Review of Interim Financial Information

Performed by the Independent Auditor of the Entity", respectively). A review of interim information

consists of making inquiries, primarily of persons responsible for financial and accounting matters,

and applying analytical and other review procedures. A review is substantially less in scope than an

audit conducted in accordance with Brazilian and International Standards on Auditing and

consequently does not enable us to obtain assurance that we would become aware of all significant

matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the

accompanying interim financial statements referred to above do not present fairly, in all

material respects, the financial position of PPLA Participations LP. as at June 30, 2023 and its

financial performance for the three and six-month period then ended, and its financial performance

and cash flows for the six-month period then ended in accordance with IAS 34 - "Interim Financial

Reporting", issued by International Accounting Standards Board (IASB).

PricewaterhouseCoopers Auditores Independentes Ltda., Avenida Brigadeiro Faria Lima, 3732, Edifício B32, 16o

São Paulo, SP, Brasil, 04538-132

T: +55 (11) 4004-8000, www.pwc.com.br

PPLA Participations LP.

Emphasis of matter

Material uncertainty related to

going concern

We draw attention to Note 1 to these financial statements, which states that the Company has incurred

recurring decreases in shareholders' equity over the past few years for the reasons set out in that Note.

Management's plans for reversing this situation, are also described in Note 1, and depends on the

success of the initiatives taken by Management, through obtaining loans and capitalization, if

necessary. This situation, among others described in that Note, indicates the existence of significant

uncertainty that may cast significant doubts about the ability of the Company to continue as a going on

concern. Our conclusion is not modified in respect of this matter.

São Paulo, August 15, 2023

PricewaterhouseCoopers

Auditores Independentes Ltda.

CRC 2SP000160/O-5

Edison Arisa Pereira

Contador CRC 1SP127241/O-0

PPLA Participations Ltd.

Balance sheet

As at June 30, 2023 and December 31, 2022

(In thousands of reais)

Assets

Note

06/30/23

12/31/22

Investment entity portfolio

Amounts receivable

Total assets

667

676

506

513

Liabilities

Other liabilities

Total liabilities

667

506

Shareholders' equity

Capital stock and share premium

Other comprehensive income

Accumulated losses

1,504,802

424,134

(1,928,927)

1,504,802

424,135

(1,928,930)

Total shareholders' equity

Total liabilities and shareholders' equity

676

513

The accompanying notes are an integral part of these Interim Financial Statement.

PPLA Participations Ltd.

Statement of income

Quarters ended on June 30

(In thousands of reais, except profit per share)

Quarters ended on:

06/30/23 06/30/22

Semesters ended on:

06/30/23 06/30/22

Note

Gain on investment entity portfolio measured at fair value

Administrative expenses

Other operating income

(600)

600

(957)

957

(1,746)

1,746

(1,232)

1,232

Operating profit

Profit for the year

Profit / (Loss) per share - basic and diluted (in reais)

0.0004

0.0007

0.0021

The accompanying notes are an integral part of these Interim Financial Statement.

PPLA Participations Ltd.

Statement of comprehensive income

Quarters ended on June 30

(In thousands of reais unless otherwise stated)

Quarters ended on:

06/30/23 06/30/22

Semesters ended on:

06/30/23 06/30/22

Profit for the period

Other comprehensive income / (loss) not to be reclassified to

profit or loss:

Movement in investments designated at fair value through

other comprehensive income

Currency translation adjustments

(1)

(6)

Total comprehensive income

The accompanying notes are an integral part of these Interim Financial Statement.

PPLA Participations Ltd.

Statement of cash flows

Quarters ended on June 30

(In thousands of reais unless otherwise stated)

Note

06/30/23

06/30/22

Operating activities

Profit for the year

Adjustments to the loss for the year

Loss from investment entity portfolio measured at fair value

Adjusted loss for the semester

(2)

(6)

Increase in operating liabilities

Due to brokers

Other liabilities

(161)

161

(1,079)

1,079

Cash provided by / (used in) operating activities

Increase / (decrease) in cash and cash equivalents

Balance of cash and cash equivalents

At the beginning of the year

At the end of the year

Increase / (decrease) in cash and cash equivalents

The accompanying notes are an integral part of these Interim Financial Statement.

PPLA Participations Ltd.

Notes to the Interim Financial Statements

March 31, 2023

(In thousands of reais)

1. Operations

PPLA Participations Ltd. ("PPLA Participations", "Company"

) was constituted as a tax

exempted Limited Liability Company under the laws of Bermuda on March 26, 2010. On December 29,

2010, the Bermuda monetary authority approved the constitution of the Company. PPLA

Participations headquarter is located on Clarendon House, 2 Church Street, HM 11, Hamilton,

Bermuda.

The Company has applied for and has been granted exemption from all forms of taxation in Bermuda

until June 30, 2035, including income, capital gains and withholding taxes. In jurisdictions other than

Bermuda, some foreign taxes will be withheld at source on dividends and certain interest received by

the Company.

Amsterdam and B3 in São Paulo. Each unit issued, corresponds to 1 class A shares and 2 class B shares

of PPLA Participations Ltd. All units listed and traded in Amsterdam remained wholly interchangeable

with the units in Brazil.

The Company is the sole owner of BTG Bermuda LP Holdco Ltd ("BTG Holdco") which, on December

29, 2010, received a Class C common share from BTG Pactual Management Ltd. and thus became

general partner of PPLA Investments LP. (

previously denominated BTG

Investments LP. As a consequence of this transaction, the Company obtained the right to control the

financial and operating policies of PPLA Investments.

PPLA Investments was formed in 2008 and makes proprietary capital investments in a wide range of

financial instruments, including Merchant Banking investments in Brazil and overseas, and a variety of

financial investments in global markets.

t area manages PPLA Investments

length.

The Management of PPLA Investments is monitoring the recurring reduction in the Company's

Shareholders' Equity over the last few years, mainly due to losses arising from negative mark-to-

market in its investment entity portfolio. Reverting the accumulated deficitary situation requires a

successful implementation of Management's initiatives through loans - made between the Company

- which can be capitalized, if necessary.

Although the deficit picture portraits the existence of a relevant uncertainty that can raise questions

about the Company's operational continuity, management evaluation came to conclude, based on the

aforementioned initiatives, that PPLA Participations has the capacity to continue operating in the next

12 months.

PPLA Participations Ltd.

Notes to the Interim Financial Statements

March 31, 2023

(In thousands of reais)

Loan Agreement

On June 21st, 2021 PPLAI entered into a Loan Agreement with BTG MB Investments LP ("BTG MB") in

which PPLAI approved a credit line with BTG MB with total amount to BRL750 million, to be disbursed

according to PPLAI request, on dates and amounts of the company loan installments, on the following

dates: June 21st,2021, July 9th, 2021, December 16th, 2021, 2022, December 12th, 2022 and

December 23th, 2023, with 30 months maturity, starting of June 21st, 2021 and interest rate of 117.3%

of CDI to be applied on each amount disbursed. The agreement does not have, on the date of its

execution, a provision that would enable BTG MB to fully or partially capitalize such credits in the

corresponding amount of shares (partnership interests) of PPLA Investments, without prejudice to any

commercial agreement to be negotiated on an arm's length basis. Simultaneously with the execution

of the Agreement, PPLA Investments requested the first disbursement to BTG MB in the amount of

approximately BRL90 million, which was made on the same date by BTG MB.

On July 9, 2021, PPLA Investments requested the second disbursement to BTG MB in the amount of

approximately BRL160 million, which was made on the same date.

On December 16, 2021, PPLA Investments requested the third disbursement to BTG MB in the amount

of approximately BRL116 million, which was made on the same date.

The loans corresponding to this Loan Agreement are carried out within the scope of the Company's

initiatives to address its economic and financial situation and PPLA Investments' recurring capital

needs, especially considering the maturity of certain loans and other short-term liabilities.

2. Presentation of Interim Financial Statement

The Co

Interim Financial Statement were prepared and are being presented in accordance

with International Financial Report Standards (IFRS), issued by International Accounting Standards

Board (IASB).

The items included in the Interim Financial Statement of each of the businesses of the Company are

measured using the currency of the primary economic environment in which the company operates

("functional currency").

The Interim Financial Statement were approved by the Management on August 15, 2023, and they

contain a true and fair view of the financial position and results of the Company.

PPLA Participations Ltd.

Notes to the Interim Financial Statements

June 30, 2023

(In thousands of reais)

3. Main accounting practices

a. Use of estimatives

The preparation of Interim Financial Statement in conformity with IFRS requires management to make

estimates and assumptions that affect the reported balances of assets, liabilities and disclosure of

contingent assets and liabilities at the date of the Interim Financial Statement, as well as the reported

amounts of revenues and expenses during the year. These estimates are based on historical

experience and various other factors that Management believes are reasonable under the

circumstances, the results form the basis for judgments about carrying values of assets and liabilities,

which are not determined through other sources. The actual results could differ from those estimates.

b. Functional currency and presentation

The Company's functional currency became the real as of April 1, 2022, since most business

transactions, especially its investments, are in this currency.

The change does not have significant effects on the Interim Financial Statement, in any period, given

that the Company already presented its Interim Financial Statement in real.

c. Cash and cash equivalents

For the purposes of statements of cash flow, cash and cash equivalents includes cash, bank deposits

and highly-liquid short-term investments redeemable in up to 3 months, subject to an insignificant

risk of change in value.

d. Revenue and expense recognition

Net gains with financial instruments

Amounts that arise from trading activity including all gains and losses from changes in the fair

value and the interest and dividend income or expense of financial assets and liabilities held for

trading.

Interest income (expense)

Interest income (expense) is recognized as incurred, using the effective interesting rate method.

The interest on financial instruments held for trading are recorded in the statement of income

when applicable.

PPLA Participations Ltd.

Notes to the Interim Financial Statements

June 30, 2023

(In thousands of reais)

e. Financial instruments

This section described the accounting practices related to IFRS 9.

Recognition date

All financial assets and liabilities are initially recognized on the trading date, that is, the date in

which the entity becomes an interested party to the contractual relationship of the instrument.

This includes purchases or sales of financial assets or liabilities that require delivery of the asset

at a specified time established by regulation or market standard.

Initial recognition of financial instruments

The classification of the financial instruments at their initial recognition depends on the purpose

for which they were acquired and their characteristics. IFRS 9 classification is generally based on

the business model in which a financial asset is managed and its contractual cash flows.

Subsequently to the IFRS 9 early adoption without electing fair value option, the Company

classified its financial assets as measured at fair value through profit or loss (FVTPL), fair value

through other comprehensive income (FVOCI) with or without recycling or at amortized cost.

Derivatives financial instruments

Derivative financial instruments are recorded at fair value and held as assets when fair value is

positive and as liabilities when fair value is negative. The changes in fair value of derivatives are

Financial assets and liabilities designated at fair value through profit and loss

Financial assets and liabilities classified in this category are those designed as such on initial

recognition. The designation of a financial instrument at fair value through profit or loss on initial

recognition is only possible when the following criteria is observed and the designation of each

instrument is individually determined:

Designation eliminates or significantly reduces the inconsistent treatment which would occur

in the measurement of assets and liabilities or in the recognition of gains and losses

corresponding to different ways; or

Assets and liabilities are part of a group of financial assets, financial liabilities, or both, which

are managed and with their performance assessed based on the fair value, as a documented

strategy of risk or investment management; or

The financial instrument contains one (or more) embedded derivative(s), which significantly

modifies the cash flows that would otherwise be required by the agreement.

PPLA Participations Ltd.

Notes to the Interim Financial Statements

June 30, 2023

(In thousands of reais)

Financial assets and liabilities at fair value through profit and loss are recorded in the balance

Financial assets measured at amortized cost

A financial asset shall be measured at amortized cost if both of the following conditions are met:

The financial asset is held within a business model whose objective is to hold financial assets

in order to collect contractual cash flows and;

The contractual terms of the financial asset give rise on specified dates to cash flows that are

solely payments of principal and interest on the principal amount outstanding.

After initial measurement, financial assets are measured at amortized cost using the effective

interest rate method.

Financial liabilities at amortized cost

Financial liabilities are measured at amortized cost using the effective interest rate method and

taking into account any discount or premium on issue and relevant costs that become part of the

effective interest rate.

Reclassifications

Financial assets are not reclassified subsequent to their initial recognition, except in the period

after the Company changes its business model for managing financial assets.

Impairment of financial assets

Under IFRS 9, at initial recognition of a debt instrument, the Company needs to project its

expected credit losses for the next 12 months and recognize it as an allowance for credit losses,

even though no losses have yet occurred.

If the Company is expecting a significant deterioration in the credit quality of its counterparty, it

should recognize an allowance equivalent to the lifetime expected credit losses of the instrument,

rather than only the 12 month expected credit losses.

PPLA Participations Ltd.

Notes to the Interim Financial Statements

June 30, 2023

(In thousands of reais)

Measurement

Expected credit losses are a probability-weighted estimate of credit losses. They are measured as

follows:

Financial assets that are not credit-impaired at the Report date: as the present value of all

cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with

the contract and the cash flows that the Company expects to receive);

Financial assets that are credit-impaired at the Report date: as the difference between the

gross carrying amount and the present value of estimated future cash flows;

Undrawn loan commitments: as the present value of the difference between the contractual

cash flows that are due to the Company if the commitment is drawn down and the cash flows

that the Company expects to receive; and

Financial guarantee contracts: the expected payments to reimburse the holder less any

amounts that the Company expects to recover.

If the assets are no longer performing (a credit event), despite considering the expected credit

losses for the lifetime of the instrument, the Company should also recognize interest revenue

based on the net carrying amount, which means that the allowance should be accounted for on

interest recognition. The main evidence of deterioration of the credit quality of the counterparty

are:

The significant decline in the fair value of any security for a prolonged period;

Non compliance with contract terms for delay of principal or interest;

Deterioration in ability to pay and operational performance;

Breach of covenants;

Significant change in the performance of the counterparty market;

Reduced liquidity of the asset due to financial difficulties the lender.

For impairment losses related to debt instruments through other comprehensive income, such

losses will be recognized on the statements of income against other comprehensive income in an

increase in the fair value of the financial asset that can be related to any event, the loss previously

considered will be reversed in profit and losses.

The Company is required to reduce the gross carrying amount of its financial instruments when

there is no reasonable expectation of recovering the contractual cash flows on the financial assets

on its entirety or a portion thereof.

PPLA Participations Ltd.

Notes to the Interim Financial Statements

June 30, 2023

(In thousands of reais)

f. Valuation of Investment entity portfolio

Within the context of IFRS 10, this entity is treated as an investment entity and therefore it is not

necessary to carry out all the procedures related to the consolidation of investees, as the exception

indicated in this rule. The objective is to earn gains through the management of portfolios and

eventual purchase and sale transactions.

Investment entity portfolio is held at fair value with movements in fair value going through the profit

and loss account. The investments held by BTG Holdco (through BTGI) are defined as underlying

investments. These underlying investments correspond substantially to an investment in global

markets and merchant banking investments which are generally made directly or through ownership

in limited partnership funds. The merchant banking investments are comprised of equity ownerships,

loans and convertible instruments which most of the risk and return are dependent on the fair value

and characteristics of underlying equity. The Company may adjust these values if, in its view, the

values do not reflect the price which would be paid in an open and unrestricted market between

informed and prudent parties, acting at arm's length and under no compulsion to act.

Investment entity portfolio are measured according to the fair value measurement hierarchy

described below:

Level 1: Price quotations observed in active markets for the same instrument;

Level 2: Price quotations observed in active markets for instruments with similar characteristics or

based on pricing model in which the relevant parameters are based on observable active market data;

Level 3: Pricing models in which current market transactions or observable data are not available and

require a high degree of judgment and estimation. Instruments in this category have been valued using

a valuation technique where at least one input which could have a significant effect on the

market data without undue cost and effort, the observed input is used. Otherwise, the Company

determines a reasonable level for the input. The valuation models are developed internally and are

reviewed by the pricing team, which is independent from the revenue generating areas, they are

updated whenever there is evid

entity portfolio primarily includes certain limited partnership interests in private equity funds mainly

derived from our merchant banking activities and OTC derivatives which valuation depends upon

unobservable inputs. No gain or loss is recognized on the initial recognition of an investment entity

portfolio valued using a technique incorporating significant unobservable data.

PPLA Participations Ltd.

Notes to the Interim Financial Statements

June 30, 2023

(In thousands of reais)

Level 3 valuation assumptions

Asset

Valuation technique

Main assumptions

Market and revenue growth, profitability and

leverage expectations, discount rates, macro-

economic assumptions such as inflation and

exchange rates, risk premiums including market,

size and country risk premiums.

Price of recent investments; Models based on

discounted cash flows or earnings; market

transactions (M&A) multiples.

Private Equity Funds (unquoted

investments)

Counterpart - Probability of default and

recovery rates.

Derivatives

Standard models and non-bidding quoted

prices

In certain cases, data used to determine fair value may be from the different levels of the fair value

measurement hierarchy. In these cases, the financial instrument is classified in the most conservative

hierarchy in which the relevant data for the fair value assessment were used. This evaluation requires

judgment and considers specific factors of the relevant financial instruments. Changes in the

availability of the information may result in reclassification of certain financial instruments among the

different levels of fair value measurement hierarchy.

g. Financial instruments Offsetting

Financial assets and liabilities are presented net in the balance sheet if, and only if, there is a current

and enforceable legal right to offset the amounts recognized and if there is the intention to offset, or

to realize the asset and clear the liability simultaneously.

h. Contingent assets and liabilities

Provisions are recognized when the Company has a current obligation (legal or constructive), as the

result of a past event and it is probable that an outflow of resources which incorporates economic

benefits shall be required to settle the obligation and a reliable estimate of the amount of the

obligation can be made. The expense related to any allowance is presented in the income statement

net of any reimbursement.

The recognition, measurement and the disclosure of the assets and contingent liabilities and of the

legal are made pursuant to the criteria described below.

Contingent assets - not recognized in the Interim Financial Statement, except when there is evidence

that realization is virtually certain.

Contingent liabilities - are recognized in the Interim Financial Statement when, based on the opinion

of legal advisors and Management, the risk of loss of an action, judicial or administrative is deemed

likely, with a probable outflow of resources to settlement of the obligations and when the amounts

involved can be reasonably measured. Contingent liabilities classified as possible losses by the legal

advisors are only disclosed in explanatory notes, while those classified as remote losses are neither

provided for nor disclosed.

PPLA Participations Ltd.

Notes to the Interim Financial Statements

June 30, 2023

(In thousands of reais)

i. Profit allocation

The dividends are classified as liabilities when declared by the board and approved by the

Extraordinary / Ordinary General Meeting.

j. Segment information

IFRS 8 requires that operating segments are disclosed consistently with information provided to the

rating decision maker, who is the person or group of persons that allocates

resources to the segments and assesses their performance. Management understands the Company

has only one segment, which is related to the

information is disclosed.

an investment activities and so no segment

k. Invested companies

Below is the ownership interest held by PPLA Investments in its Indirect subsidiaries:

Equity interest - %

Country

06/30/2023

12/31/2022

Indirect subsidiaries

Timber XI SPE S.A.

Timber IX Participações S.A.

Timber XII SPE S.A.

Brazil

7.84

8.02

Fazenda Corisco Participações S.A.

BTG Pactual Santa Terezinha Holding S.A.

Timber VII SPE S.A.

BTGI VII Participações S.A.

BTGI VIII Participações S.A.

Hárpia Omega Participações S.A.

Latte Saneamento e Participações S.A.

Auto Adesivos Paraná S.A.

7.84

8.02

100.00

4.40

100.00

4.40

11.17

4. Risk management

organization

and ensuring decisions are readily implemented.

The main committees/meetings involved in risk management activities are: (i) Management meeting,

which approves policies, defines overall limits and, alongside with the other committees, monitors the

management of our risks; (ii) Compliance Committee, which is responsible for establishing policy rules

and report potential problems related to money laundering.

PPLA Participations Ltd.

Notes to the Interim Financial Statements

June 30, 2023

(In thousands of reais)

a. Credit risk

The following table shows the maximum exposure of the investment entity portfolio by geographic

region:

06/30/23

Brazil

United States

Others

Total

Assets

Cash

Investment entity portfolio

Financial assets at amortized cost (i)

Other assets

Total

12/31/22

Brazil

United States

Others

Total

Assets

Cash

Investment entity portfolio

Investments at fair value through other comprehensive income

Financial assets at amortized cost (i)

Other assets

Total

(i) The amount basically corresponds to loans to partners.

The table below states the maximum exposures to credit risk of the investment entity portfolio,

06/30/23

Private institutions

Companies

Individuals

Others

Total

Assets

Cash

Investment entity portfolio

Financial assets at amortized cost

Total

12/31/22

Companies

Private institutions

Individuals

Others

Total

Assets

Cash

(2)

Investment entity portfolio

Investments at fair value through other comprehensive income

Financial assets at amortized cost

Other assets

Total

(1)

PPLA Participations Ltd.

Notes to the Interim Financial Statements

June 30, 2023

(In thousands of reais)

b. Liquidity analysis and risk

As at June 30, 2023 and December 31, 2022, the Company does not have any cash or cash equivalents.

And there is no fixed maturity for the discounted cash flows for the investment entity portfolio of the

at As at

June 30, 2023 and 2022:

06/30/23

Up to 90 days

/ No maturity

90 to 365

days

1 to 3

years

Over 3

years

Total

Assets

Cash

Investment entity portfolio

Financial assets at amortized cost

Liabilities (i)

(13)

Total

12/31/22

Up to 90 days

/ No maturity

90 to 365

days

1 to 3

years

Over 3

years

Total

Assets

Investment entity portfolio

Cash

Investment entity portfolio

Investments at fair value through other comprehensive income

Financial assets at amortized cost

Other assets

Liabilities (i)

Total

(3)

(12)

(15)

(i) The amounts refer basically to loans to partners.

5. Investment entity portfolio

The Interim Financial Statement of PPLA Investments

for the quarter ended June 30, 2023

were reviewed by independent auditors who issued a opinion report on August 14, 2023, without

modification, presenting a section of relevant uncertainty related to operational continuity.

As at June 30, 2023, PPLA Investments' equity is BRL 326,837 (2022 269,230) due to results with the

investment entity portfolio. PPLA Participations marked its investment in PPLA Investments at BRL 9

on June 30, 2023 (BRL 7 December 31, 2022), considering the percentage of interest held by the

Company of 0.003% (December 31, 2022 0.003%). PPLA P does not have contractual commitments

with the liabilities of its investees.

PPLA Participations values its investments at fair value, in accordance with the accountings standards

of PPLA Investments.

PPLA Participations Ltd.

Notes to the Interim Financial Statements

June 30, 2023

(In thousands of reais)

The relevant figures of the PPLA Investments investment portfolio, as at June 30, 2023 and December

31, 2022, are presented below:

Note

06/30/2023 (1)

12/31/2022 (1)

Assets

Cash

(a)

(b)

(c)

(d)

54,453

592,977

16,288

118,007

8,809

78,562

449,666

144,247

118,510

19,997

Investment entity portfolio

Investments at fair value through other comprehensive income

Financial assets at amortized cost

Other assets

Total

Liabilities

Derivatives

Financial liabilities at amortized cost

Other liabilities

790,534

810,982

463,067

630

20,404

430,102

91,246

(e)

Total

463,697

541,752

Shareholders' equity

Total liabilities and shareholders' equity

326,837

790,534

269,230

810,982

(a) Cash

This item is composed exclusively of bank deposits with immediate liquidity.

(b) Investment entity portfolio

As of June 30, 2023

Fair value

As of December 31, 2022

Fair value

Merchant Banking investments

Private equity funds ("FIP")

Subsidiaries, associates and jointly controlled entities

Others (1)

551,482

421,878

129,604

41,495

513,447

382,244

131,203

(63,781)

449,666

Total

592,977

(1) Includes financial assets and liabilities entered into by Company subsidiaries.

(i) Merchant Banking investments

Merchant Banking investments consist of investments, held directly or through investment

vehicles (including funds that also include third party investors), in a diversified group of portfolio

companies primarily located in Brazil. Merchant Banking investments are structured generally

through privately negotiated transactions with a view to divest in four to ten years.

PPLA Participations Ltd.

Notes to the Interim Financial Statements

June 30, 2023

(In thousands of reais)

As at June 30, 2023 and 2022, PPLA Investments Merchant Banking investments corresponds to

private equity and real estate investments, through FIP or other investment vehicles, as disclosed

below:

06/30/23

12/31/22

Description/Segment

activity

Fair

value

Merchant Banking investments

(%) (1)

Fair value

(%) (1)

Through FIPs:

Adhesives, labels and

special paper

Beontag

11.17%

421,878

11.17%

382,244

company

Through subsidiaries, associates and jointly controlled entities:

Timber XI SPE S.A.

Timber IX Participações S.A.

Timber XII SPE S.A.

BTG Pactual Santa Terezinha Holding S.A.

Fazenda Corisco Participações S.A.

Timber VII SPE S.A.

Biological assets

Others

7.84%

2,714

14,339

50,561

10,305

11,983

36,715

2,987

8.02%

4,311

13,866

48,125

11,772

12,777

37,365

2,987

Loans - Merchant Banking investments

Total

551,482

513,447

(1) The equity interest disclosed in the table above refers to the Company indirect interest.

PPLA Investments presents part of its investment entity portfolio as investments designated at fair

value through other comprehensive income, as described below:

As of June 30, 2023

Fair value

As of December 31, 2022

Fair value

Merchant Banking investments - FIP

Total

16,288

144,247

(i) Merchant banking investments - FIP

As at June 30, 2023 and December 31, 2022, PPLA Investments Merchant Banking investments

corresponds to private equity and real estate investments, through FIP, as disclosed below:

06/30/23

12/31/22

Fair value

Merchant Banking investments

A!Bodytech Participações S.A.

Description/Segment activity

Fitness segment

(%) (1)

10.5%

Fair value

5,831

(%) (1)

10.5%

5,739

Waste collection, treatment

and disposal

Latte S.A.

15.7%

4,772

15.7%

2,397

PagSeguro LTDA. (2) (3)

Others

Payments institution

5,685

0.9%

128,774

7,337

Total

16,288

144,247

(1) The equity interest disclosed in the table above refers to the Company indirect interest.

(2) On September 05, 2022, on Extraordinary / Ordinary General Meeting the new class A of redeemable preferred shares was approved for conversion by

assuming the full conversion of preferred shares

held by the shareholder BTG Pactual Principal Investments Fundo de Investimento em Participações Multiestratégia, and, the deliverance of 7.960.215

(seven million, nine hundred sixty thousand, two hundred fi

(3) Throughout the first semester of 2023, there was a sale of all of PagSeguro's shares. This event is part of the divestment process that the Company has

been carrying out.

(d) Financial assets at amortized cost

06/30/23

12/31/22

Partners (i)

Total

118,007

118,510

(i)

Loans granted by PPLA Investments are indexed to DI or SOFR, and the maturity are in general higher than one year. Loans to partners are provided in

connection to the acquisition of shares in BTG Pactual Group and are considered as related parties at PPLA Investments note 13.

PPLA Participations Ltd.

Notes to the Interim Financial Statements

June 30, 2023

(In thousands of reais)

As at June 30, 2023 and December 31, 2022, the fair value attributed to the loans and receivables is

similar to its amortized cost.

(e) Financial liabilities at amortized cost

Part of the loans and medium term notes are guaranteed by BTG Pactual Holding S.A., indirect parent

company of Banco BTG Pactual.

(f) Fair value Hierarchy

(i) Investment entity portfolio

06/30/23

Level 1

Level 2

Level 3

Total

Investment entity portfolio

Merchant Banking investments

Private equity funds

Subsidiaries, associates and jointly controlled entities

Others

421,878

126,617

421,878

129,604

41,495

2,987

41,495

44,482

Total

548,495

592,977

12/31/22

Level 1

Level 2

Level 3

Total

Investment entity portfolio

Merchant Banking investments

Private equity funds

Subsidiaries, associates and jointly controlled entities

Others

2,987

(63,781)

(60,794)

382,244

128,216

382,244

131,203

(63,781)

449,666

Total

510,460

(i)

Mostly composed of obligations, as a result of the downside protection contract.

(ii) Investments at fair value through other comprehensive income

The summary of assets and liabilities classified in accordance with the fair value hierarchy is as

follows:

06/30/23

Level 1

Level 2

Level 3

Total

Investments at fair value through other comprehensive income

Merchant Banking investments - FIP

Total

5,685

10,603

16,288

12/31/22

Level 1

Level 2

Level 3

Total

Investments at fair value through other comprehensive income

Merchant Banking investments - FIP

Total

144,247

(iii) Summary of valuation techniques

There were no changes from the valuation techniques disclosed in the Interim Financial Statement

for the quarter ended June 30, 2023.

(iv) Reclassification between levels

During the quarter ended June 30, 2023, there were no reclassification between levels and fair

value hierarchy.

PPLA Participations Ltd.

Notes to the Interim Financial Statements

June 30, 2023

(In thousands of reais)

6. Amounts receivable

As at June 30, 2023 and December 31, 2022, the item refers entirely to amounts receivable from

investees/subsidiaries, to pay for the Company s administrative expenses as of June 30, 2023 in the

amount of BRL 667 (BRL 506 as of December 31, 2022).

7. Other liabilities

As at June 30, 2023, the item refers entirely to amounts payable regarding administrative expenses

from the Company's BDRs program as of June 30, 2023 in the amount of BRL 667 (BRL 506 as of

December 31, 2022).

a. Capital

As of June 30, 2023 and December 31, 2022

class of shares:

Authorized

5.000.000.000

Issued

Par value (BRL)

Voting rights

Vote per share

Class A (i)

Class B (i)

Class C

Class D

Total

938.222

Yes

10.000.000.000

1.876.444

(*)

1.000.000.000

16.000.000.001

0,0000000001

2.814.667

(*) Class C shareholders holds voting rights equivalent to ten times the total number of issued and subscribed A and D Class shares at any moment.

(i) Only class A and class B shareholders are entitled to economic benefits.

b. Dividends

The Company did not distribute dividends during the quarter ended June 30, 2023 and the year ended

December 31, 2022.

9. Profit / (Loss) per share

Quarters ended on:

6/30/2023 6/30/2022

Semesters ended on:

06/30/23

06/30/22

Profit for the period

Weighted average per thousand shares outstanding during the period

Profit / (Loss) per share - basic and diluted (in reais)

2,815

0.0004

2,815

0.0007

2,815

0.002

10.Gain / (Loss) from investment entity portfolio measured at fair value

through profit or loss

Quarters ended on:

06/30/23 06/30/22

Semesters ended on:

06/30/23 06/30/22

Gain on investment entity portfolio

Total

PPLA Participations Ltd.

Notes to the Interim Financial Statements

June 30, 2023

(In thousands of reais)

11. Administrative expenses

In the semesters ended June 30, 2023 and 2022, the item is composed exclusively of custodial

expenses, due to the Company s BDR program.

12. Other operational income

In the semesters ended June 30, 2023 and 2022, the item is composed exclusively by amounts

regarding reimbursed from subsidiaries.

13. Related Parties

Assets (Liabilities)

06/30/23 12/31/22

Revenues (Expenses)

Relationship

06/30/23

06/30/22

Assets

Amounts receivable

- PPLA Investments LP

Liabilities

Other liabilities

- PPLA Investments LP

Controlled entities

667

506

1,232

1,746

(667)

(506)

(1,232)

(1,746)

No management compensation was recorded during the semesters ended June 30, 2023 and 2022.

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PPLA Participations Ltd. Interim / Quarterly Report 2023

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PPLA Participations Ltd. — Interim / Quarterly Report 2023

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PPLA Participations Ltd. Interim / Quarterly Report 2023