| PROPERTY, PLANT AND EQUIPMENT |
NOTE 10 — PROPERTY, PLANT AND EQUIPMENT a) Summary of changes in property, plant and equipment: | | | | | | | | | | | | | | | | | | | | | Property, plant and | | | | | | | Land and | | Machines, equipment, | | Data electronic | | equipment under | | | | | Cost of the property, plant, and equipment | | buildings | | and installations | | equipment | | construction | | Others | | Total | Balances as of January 1, 2023 | | 10,430,215 | | 38,638,694 | | 1,022,633 | | 3,714,681 | | 1,374,158 | | 55,180,381 | Additions | | 93,945 | | 211,267 | | 15,337 | | 5,097,397 | | 265,551 | | 5,683,497 | Assets retirement obligation | | 21,310 | | — | | — | | — | | — | | 21,310 | Capitalized interest | | — | | — | | — | | 54,374 | | — | | 54,374 | Transfers | | 708,827 | | 2,335,980 | | 96,450 | | (3,238,470) | | 97,213 | | — | Disposals | | (33,995) | | (344,697) | | (5,598) | | (2,739) | | (18,487) | | (405,516) | Foreign exchange effect | | (346,911) | | (1,761,512) | | (41,713) | | (108,693) | | (15,786) | | (2,274,615) | Balances as of December 31, 2023 | | 10,873,391 | | 39,079,732 | | 1,087,109 | | 5,516,550 | | 1,702,649 | | 58,259,431 | Additions | | 29,238 | | 163,145 | | 5,045 | | 5,720,273 | | 265,387 | | 6,183,088 | Capitalized interest | | — | | — | | — | | 125,729 | | — | | 125,729 | Transfers | | 724,304 | | 2,541,877 | | 58,097 | | (3,352,066) | | 27,788 | | — | Disposals | | (21,812) | | (223,378) | | (360,827) | | (899) | | (31,729) | | (638,645) | Acquisition of company | | 65,290 | | 114,819 | | — | | 123,818 | | 32,836 | | 336,763 | Impairment of assets (Note 29.2) | | (28,032) | | (143,669) | | (711) | | — | | (27,215) | | (199,627) | Foreign exchange effect | | 1,101,743 | | 5,829,519 | | 101,414 | | 466,718 | | 77,391 | | 7,576,785 | Balances as of December 31, 2024 | | 12,744,122 | | 47,362,045 | | 890,127 | | 8,600,123 | | 2,047,107 | | 71,643,524 | Additions | | 31,710 | | 356,596 | | 14,547 | | 5,544,539 | | 197,130 | | 6,144,522 | Capitalized interest | | — | | — | | — | | 227,093 | | — | | 227,093 | Transfers | | 1,030,723 | | 4,407,066 | | 84,994 | | (5,540,035) | | 17,252 | | — | Disposals | | (82,964) | | (447,211) | | (4,139) | | (19,910) | | (87,665) | | (641,889) | Acquisition of company (Note 3.4) | | 34,340 | | 395,322 | | 2,390 | | 42,780 | | (5,179) | | 469,653 | Impairment of assets (Note 29.2) | | (344,348) | | (1,183,250) | | (2,218) | | (47,814) | | (13,739) | | (1,591,369) | Foreign exchange effect | | (512,033) | | (1,971,503) | | (27,970) | | (146,288) | | (3,168) | | (2,660,962) | Balances as of December 31, 2025 | | 12,901,550 | | 48,919,065 | | 957,731 | | 8,660,488 | | 2,151,738 | | 73,590,572 |
| | | | | | | | | | | | | | | | | | | | | Property, plant and | | | | | | | Land and | | Machines, equipment, | | Data electronic | | equipment under | | | | | Accumulated depreciation | | buildings | | and installations | | equipment | | construction | | Others | | Total | Balances as of January 1, 2023 | | (5,716,422) | | (27,719,696) | | (918,769) | | — | | (402,760) | | (34,757,647) | Depreciation | | (542,419) | | (1,773,479) | | (62,072) | | — | | (72,227) | | (2,450,197) | Transfers | | 30 | | (143) | | 113 | | — | | — | | — | Disposals | | 17,558 | | 307,113 | | 5,597 | | — | | 16,736 | | 347,004 | Foreign exchange effect | | 172,016 | | 1,202,584 | | 45,872 | | — | | 61,467 | | 1,481,939 | Balances as of December 31, 2023 | | (6,069,237) | | (27,983,621) | | (929,259) | | — | | (396,784) | | (35,378,901) | Depreciation | | (427,553) | | (1,922,750) | | (76,514) | | — | | (57,626) | | (2,484,443) | Transfers | | 924 | | (814) | | (135) | | — | | 25 | | — | Disposals | | 10,421 | | 219,650 | | 360,770 | | — | | 31,365 | | 622,206 | Foreign exchange effect | | (567,594) | | (4,129,783) | | (62,691) | | — | | (51,004) | | (4,811,072) | Balances as of December 31, 2024 | | (7,053,039) | | (33,817,318) | | (707,829) | | — | | (474,024) | | (42,052,210) | Depreciation | | (462,279) | | (2,332,157) | | (91,877) | | — | | (105,660) | | (2,991,973) | Disposals | | 27,301 | | 409,819 | | 3,339 | | — | | 48,868 | | 489,327 | Foreign exchange effect | | 279,829 | | 1,290,955 | | 33,861 | | — | | 472 | | 1,605,117 | Balances as of December 31, 2025 | | (7,208,188) | | (34,448,701) | | (762,506) | | — | | (530,344) | | (42,949,739) | | | | | | | | | | | | | | Net property, plant and equipment | | | | | | | | | | | | | Balances as of December 31, 2023 | | 4,804,154 | | 11,096,111 | | 157,850 | | 5,516,550 | | 1,305,865 | | 22,880,530 | Balances as of December 31, 2024 | | 5,691,083 | | 13,544,727 | | 182,298 | | 8,600,123 | | 1,573,083 | | 29,591,314 | Balances as of December 31, 2025 | | 5,693,362 | | 14,470,364 | | 195,225 | | 8,660,488 | | 1,621,394 | | 30,640,833 |
The average rate of capitalized interest in 2025 was 13.8% (11.4% in 2024 and 13.1% in 2023). The following useful lives are used to calculate depreciation: | | | | | Useful lives of | | | property, | | | plant and equipment | Buildings | | 10 to 33 years | Machines, equipment, and installations | | 10 to 20 years | Furniture and fixture | | 5 to 10 years | Vehicles | | 3 to 5 years | Data electronic equipment | | 2.5 to 6 years |
b) Guarantees — property, plant and equipment were not offered as collateral for loans and financing in 2025, 2024 and 2023. c) Impairment of property, plant and equipment — As of December 31, 2025, the carrying amount of items of property, plant and equipment for which an impairment loss has been recognized up to current year is R$ 639,826 for land and buildings ( 346,147 as of December 31, 2024), R$ 1,533,935 for machines, equipment and installations (R$ 488,533 as of December 31, 2024), R$ 2,787 for data electronic equipment (R$ 711 as of December 31, 2024), R$ 609,823 for Property, plant and equipment under construction (R$ 562,009 as of December 31, 2024) and R$ 13,739 for others (R$ 0 as of December 31, 2024). In the fourth quarter of 2025, the Company recorded impairment losses related to such assets in the amount of R$ 1,591,369 in the Brazil segment. These losses were determined based on the difference between the carrying amount and the recoverable amount of these assets. These losses were recorded as an expense, in the “Impairment of assets” line in the Consolidated Statements of Income, as detailed in Note 29. d) Asset additions in 2025 include a non-cash effect of R$ 537,098 (R$ 404,707 as of December 31, 2024).
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