SUPERGRAINS

Material for Discussion

SUPERGRAINS

THIS DOCUMENT MAY NOT BE REPRODUCED OR DISCLOSED IN PART OR INTEGRALLY, WITHOUT EXPRESSION AND FIRST CONSENT, IN WRITING, OF THE SUPERGRAINS.

1.

Project

2.

Project Detailing and Sustainability

CONFIDENTIAL 2

Project Supergrains will provide storage and elevation services for agricultural products (grains) in São Francisco do Sul/SC.

LOCATION São Francisco do Sul/SC ● Joinville - 40 Km ● Itajaí - 116 Km ● Curitiba - 180 Km

PROJECT HIGHLIGHTS • Retro storage and lifting terminal (Bulk) • Products: Grains

• Static capacity: 110 thousand tons

● Paranaguá - 240 Km

INSTALLATION ENVIRONMENTAL PERMIT

CONFIDENTIAL 3 CONFIDENTIAL 3

Importance of Brazil in World Agribusiness Brazil is the 4th largest producer of grains in the world due to the excellent geoclimatic conditions and specialization of its producers. The importance of Brazil in exports is even greater, and in the 20/21 harvest it was the main exporter of soybeans and the 3rd largest exporter of corn.

SUGAR (Harvest 20/21)

BRAZILIAN EXPORTS (US$ BILLIONS)

Producers

Exporters

¹Soybeans, oil and bran

CORN (Harvest 20/21)

SOY (Harvest 20/21) Producers

Source: USDA Source: USDA

Exporters

Producers

Exporters

CONFIDENTIAL 4 CONFIDENTIAL 4

Agricultural Production vs. Storage The production and export of grains have shown exponential growth over the last few years, while storage capacity has not expanded at the same level.

Source: USDA, CONAB and UNICA Source: CONAB, USDA and UNICA

SOY

SUGAR

CORN

STORAGE VS. PRODUCTION OF GRAINS - (MM ton)

CONFIDENTIAL 5

Grain Market Brazilian production increasing will be mostly exported. In order to guarantee this export capacity further investment in infrastructure is necessary including the port sector.

BRAZILIAN GRAIN MARKET 21/22 to 28/29 (%.)

22,7% Production 13,3% Area 14,3% Productivity

Area availability and investments in productivity are the bases for the growth of Brazillian production ¹Cotton, peanuts, rice, oats, canola, rye, barley, beans, sunflower, castor bean, corn, soybeans, sorghum, wheat and triticale.

CORN PROJECTION

19/20 to 28/29 Production Consumption Export

Source: USDA

Var. (MM ton) 31 15 1

*Estimate

Source: MAPA and CONAB

SOY PROJECTION

Var. (%) 30,4% 21,7% 2,9%

19/20 a 28/29 Production Consumption Export

Var. (MM ton) 72 13 32

Var. (%) 55,8% 26,5% 34,8%

CONFIDENTIAL 6

Dynamics of Grain Production In addition to the benefits of infrastructure and storage capacity, the South-Export corridor presents another advantage related to round freight. In 2021 54% of Brazil’s fertilizer imports occurred in the southern region.

Soy Production (MM ton.)

Brazil – 136,0 MM. ton

Corn Production (MM ton.)

Brazil - 100,0 MM ton.

Fertilizer import (MM ton.)

Brazil - 20,5 MM ton.

Source: Aliceweb, CONAB and Antaq

CONFIDENTIAL 7

SFS Port Influence Area EXPORT OF GRAINS IN PORT OF SFS (2021)¹ Major states that use the SFS Port structure to flow their production MT 0,8% GO 2,1%

MS 28,5%

SP 2,2% Soy and Corn

PR 42,6% SC 21,8%

Port of São Francisco do Sul

RS 1,7%

¹Grains, Soy and Corn.

Source: Aliceweb and Antaq

CONFIDENTIAL 8

Main Ports in Brazil The Port of São Francisco do Sul is the sixth largest in export volume, mainly for grains, representing 8% of the total volume of soybeans and corn exported in 2021.

(E) São Luís (G) Manaus

(I) Barcarena (J) Santarém (M) Recife (H) Salvador

(K) Maceió

(F) Vitória (B) Paranaguá (L) Imbituba

(A) Santos (D) São Francisco do Sul (C) Rio Grande

Source: Aliceweb

CONFIDENTIAL 9

Round Freight Concept Origin Ports - IMPORT OF FERTILIZERS

Currently, the South export corridor is more logistically advantageous when compared to the North corridor due to the concept of round freight. In 2021 54.3% of the volume of fertilizer imports occurred through ports in the southern region of Brazil. This represents a better logistics of agricultural production, because with the export of the production, the transporters will be able to return to the producing regions with imported fertilizer.

Source: Aliceweb

CONFIDENTIAL 10

Port of São Francisco do Sul The port of São Francisco do Sul operates under its potential because of these: (I) storage deficiency e (II) inefficiency of the port procedure. Considering its historical data it is estimated that the bulk export capacity would be at least 10 Millions tons yearly.

EXPORTS BY PORT OF SFS - SC

STATIC STORAGE

(Thousand ton)

2017

2018

2019

2020

Jul/21

Soybeans

4.718

5.599

4.518

5.643

3.424

Soybean meal

75

4

Corn

1.511

489

Sugar

0,5

Total

6.305

0

4

3

1.332

936

283

0,6

0,5

0,7

0,3

6.093

5.851

6.583

3.710

Jan/17 a Jul/21

Quantity of thousand tons Top 5 average Daily average 859,55 28,65

Capacity (K Ton.)

Bunge

180,5

Terlogs (Marubeni)

111,9

CIDASC (PUBLIC)

86,2

378,6

Total

SUPERGRAINS:

ESTIMATION OF GRAIN EXPORT CAPACITY Considered historical period

Company

Year 10.457,91

✓ ✓

110 thousand tons 29% increase in static storage

SEASONALITY OF GRAIN EXPORTS (K ton)

Source: Aliceweb and CONAB

CONFIDENTIAL 11

São Francisco do Sul Port Structure APSFS (Port of SFS Administration)

●

Delegated authority for 25 years(Set/14)

●

Manage the area of the Organized Port Operators (Other types of cargo)

Operators (Grains) ● CIDASC ● TERLOGS ● BUNGE

● ● ● ●

TESC Litoral Seatrade WRC

● ● ● ●

ZPORT Marcor Full Port Master

● Rocha ● SOIN

GRAIN EQUIPMENT (Property of Operators) ●

2 Conveyor belts 1500 ton/h each - operated by CIDASC

●

2 Ship loaders 1500 ton/h each - operated by CIDASC

●

400 thousand tons of static storage capacity: ○

CIDASC - 110 thousand tons

○

Terlogs - 110 thousand tons (+70k tons under construction)

○

Bunge - 180 thousand tons

●

Berth 101 (public) - bulk export

●

Berth 102 and 103 (public) - general multi purpose vessels

●

Berth 201 (public) and TESC (private) - general multi purpose vessels CONFIDENTIAL 12

Operational Efficiency of Ports Port efficiency is related to berthing and lifting capacity. Considering the current structure, it is estimated that the port of São Francisco do Sul has the capacity to export up to 15 millions tons per year, without considering new projects (TGSC and 401).

TIME OF OPERATION AND STAY Solid bulk export 2020

Santos

Paranaguá

Rio Grande

SFS

Imbituba

Waiting for mooring (hours)

150,8

542,7

82,0

110,8

118,3

Ship loading operation (hours)

63,5

54,0

61,6

63,5

109,8

Total stay

214,3

596,7

143,6

174,3

228,1

570

273

259

101

31

Export - Soy, Corn (K ton)

31.247,74

17.184,70

6.546,02

6.381,53

1.508,30

Static storage (K ton)

1.881,19

2.017,79

2.193,39

442,49

232,57

1,38

0,71

0,25

1,20

0,54

Number of berths (un)

Warehouse turnover (turn/month)

It is important to emphasize Imbituba’s performance of about 1,5 million tons per year. This volume passes in front of São Francisco do Sul every single year adding about 230 Km of trucking. This is the main evidence of this lack of overall storage capacity as they operate in a very old fashioned and archaic system as a matter of fact. Despite of the huge space but precarious with old warehouses to accommodate cargoes, no loading facility is available, and it happens through trucking and grabs which is far away longer than a real export grain facility going 30 to 40 years back into the past.

• Link for a video of this archaic operation: https://www.youtube.com/watch?v=E86ytnT5954 Source: Antaq

CONFIDENTIAL 13

Line-up of the Main Ports Currently, the main critical points for the ports of Brazil are: berthing capacity and storage. For the Port of São Francisco do Sul planned investments will minimize these bottlenecks, among them, the SUPERGRAINS project.

PORT OF SÃO FRANCISCO DO SUL/SC

LINE-UP OF BULK CARRIERS

TGSC 401

Santos 41 ships

101

102 TESC

Paranaguá 69 ships

103

BERTH FEATURES: São Francisco do Sul 4 Ships

Source: Marine Traffic 07-10-2010

● ● ● ●

101 - Bulk (conveyor connection) 102 - Container 103 - Container TESC - General cargoes

● ●

401 (Project) - Bulk TGSC (Project) - Bulk

CONFIDENTIAL 14

1.

Project

2.

Project Detailing and Sustainability

AGENDA

CONFIDENTIAL 15

Investment Project Supergrains will provide storage and elevation services for agricultural products (grains) to producers and traders interested in disposing of production through the port of São Francisco do Sul / SC. LOCATION OF THE SUPERGRAINS PROJECT

PROJECT FEATURES ●

Area with approximately 46.125,2m² (already purchased);

●

3 silos with total static capacity of 60 thousand tons (grains), with a diameter of 29m and a height of 40m;

●

1 warehouse with static capacity of 50 thousand tons (grains), measuring 40X138m;

●

1 conveyor belt that will connect the SUPERGRAINS warehouse to the public conveyor belt, with a 1350m.

CONFIDENTIAL 16

Technical Project Detailing 2 1

4

5

3

1

1

Road hopper, shipping bin and elevators

2

Silos ‘29x40’ - 20 k ton each

3

Warehouse ‘40x138’ - 50 k ton

4

Place to install the scale

5

Conveyor belts: 600 t/h (loading); 2000 t/h (expedition)

A

Conveyor belts SUPERGRAINS - 1.350m

B

Public conveyor belts of Port SFS

C

TGSC - Litoral Group - Project

D

Terlogs - Marubeni

E

Loop line of interconnection between the railway and the access to the warehouse

C B

D

E

A

CONFIDENTIAL 17

Project Sustainability SUPERGRAINS and its shareholders are committed to social and environmental actions that aim at the well- being of employees minimizing the impact of their activities on the environment.

The project will generate direct and indirect jobs.

ENVIRONMENTAL

SOCIAL

●

The company has already granted the Permanent Permit;

●

Fully urbanized area that lives in function of the existing port;

●

Total area of 46,125m², of which 38.125m² with native vegetation (secondary in advanced stage of natural regeneration) of the Atlantic Forest biome;

●

Socioeconomic development of the area of influence of the project (increase in demand for goods and services);

●

Increase in tax collection;

Only 50% of this area of secondary vegetation was suppressed, and the remaining portion (about 19,062m²) will be preserved.

●

Training of local workers;

●

Benefits to the level of employment and income of the population;

●

Generation of 41 direct jobs, of which 32 are operational positions and 9 are administrative positions;

●

Reduction in the cost of logistics of solid bulk transportation, with beneficial impacts on the income of agricultural producers.

●

●

The forest inventory estimated the existence of 30 copies of “Palm Heart-Juçara” in the Project area. As a compensation for the cutting of these specimens was made the replanting of 1470 Palm Heart trees and 50 Olandi seedling and additionally we have purchased and offered to IMA (Environment Department) 26.979,55m² of green area in the Babitonga hidrografic basin.

CONFIDENTIAL 18

License, Authorizations and Construction

Location São Francisco do Sul/SC São Francisco do Sul/SC São Francisco do Sul/SC São Francisco do Sul/SC São Francisco do Sul/SC

São Francisco do Sul/SC

Document

Expedition Institution

Protocol of Intentions

Prefeitura municipal de São Francisco do Sul/SC

Building Permit

Secretaria Municipal de Infraestrutura

Previous Environmental License

Registration number

Dispatch date

Expiration

Status/Timing

-

-

29/05/2015

Undetermined

-

-

-

Instituto do Meio Ambiente - IMA

8213/2019

03/01/2020

31/01/2021

Replaced by “LAI”- Installation Environmental Permit

Installation Environmental Permit

Instituto do Meio Ambiente - IMA

2341/2021

04/05/2021

04/05/2023

In Force

Vegetal Suppression Authorization

Instituto do Meio Ambiente - IMA

25/2020

08/12/2020

24/11/2023

In Force

Construction

-

-

-

In Progress

-

18-24 months after funding

CONFIDENTIAL 19

Project Schedule SUPERGRAINS has advanced in the environmental and technical issues of the project, and in parallel has discussed with potential financiers the most appropriate funding structure.

Complete tasks ●

Company formation

●

Land acquisition

●

Preliminary project study

●

Installation license

●

Vegetal Suppression

●

Forest Compensation

●

Hiring the executive

Funding

1-6 months ●

Presentation of potential

●

funders ●

Alignment of the financing

●

Earthmoving

Approval of the financing

●

Construction

structure

●

Hiring

Credit Approval Discussion

structure ●

18-24 months

●

Possible bridging credit structuring

project ●

Financial modeling and investment analysis

CONFIDENTIAL 20

Ownership Structure SUPERGRAINS is a limited “LTDA”company, similar to a LLC.

Owner

%

Multi Grains Participações Ltda

50

CAJR Participações Ltda

30

Mamute Participações Ltda

20

CONFIDENTIAL 21

Vegetal Suppression – 05/28/2021

CONFIDENTIAL 22

Vegetal Suppression – 05/28/2021

CONFIDENTIAL 23