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2018 SUSTAINABILITY REPORT Together We accomplish More. 2 Summary

1 3 5 TOGETHER TOGETHER TOGETHER WE ARE WE ARE WE ARE CARAMURU ATTITUDE RESULTS SumárioPage. 3 Page 28 Page 41

2 4 6 TOGETHER TOGETHER TOGETHER WE ARE WE ARE WE ARE EFFICIENCY PEOPLE TOMORROW Page 11 Page 34 Page 51 3 1 Together We Are Caramuru The year 2018 is yet another chapter of achievement and learning from a journey of over half a century of history. 4 Achievements that project us into the future The year 2018 was a period of achievements that motivated us to go further, and to continue a journey that began in the mid-1960s, when the Máquina Caramuru was founded. A trajectory with more than half a century, which fills us with pride and proves how much we have done and continue making the difference for employees, partner producers and customers.

Since then, a lot has happened: successful projects have been launched, units and warehouses were inaugurated, expansions have been completed, processes have been implemented and brands and products have been launched. Each activity concluded encouraged us to move forward with dedication, ethics and commitment, always focused on the sustainability of our business.

This past year was no different. As you can see in this sustainability report, we have developed new businesses, expanded our operations in and abroad, made investments in innovative technologies that optimize the routine of employees and added value to the production chain.

All these achievements were possible thanks to the dedication of teams present in warehouses, units, ports, factories and terminals located in different states of the country. The merit of these results lies with all employees and managers who acted in an integrated manner and engaged with our values and principles.

We have always contributed to the effective development of Brazil, with generation of jobs, tax payments, increment of the production chain in the agribusiness, in renewable energies and with food.

See below for what was achieved throughout 2018. These are achievements that we present with great pride. Enjoy your reading!

Alberto Borges de Souza, Chairman of the Board of Directors 5 A journey of innovation, economic and social development Opening of oil that makes the difference. and soybean meal, pre-cooked corn factories. Beginning Inauguration of the Opening, in Apucarana, of the opening corn processing of the factory of crude of the storage Implantation of the 1964 plant, subsidiary of 1975 oil, corn germ and 1979 units of Goiás, 1991 soybean oil refinery in Apucarana - PR. pelletized bran. in several cities. - GO.

Máquina Caramuru Opening of the Launching of Transfer of the parent was founded by corn processing the Sinhá brand. compnay from Múcio de Souza Rezende, 1971 plant, subsidiary of 1977 1986 Apucarana - PR to 1992 in Maringá - PR, in Itumbiara - GO. Itumbiara - GO. the field of corn industrialization.

Soybean Lecithin Unit, Biodiesel Beginning of the Transshipment in São Simão. Opening production 1995 opening of storage 1999 branches of Anhembi 2001 of Terminal XXXIX, in 2004 unit, in São units in . and Pederneiras - SP. Porto de Santos - SP. Simão - GO.

Inauguration of the São PET filling unit, in Unit of extraction Opening of the Simão - GO soybean Itumbiara - GO. and refining of grain storage unit processing plant and 1998 2000 special oils, in 2002 in - GO. 2007 the waterway terminal. Itumbiara - GO.

Rental of an industrial soybean extraction unit and installation of Electric power 2010 a lecithin production 2013 Caramuru completes 2015 cogeneration, in 2017 unit in Sorriso - MT. 50 years. Sorriso - MT.

Biodiesel production Installation of the Soybean processing Biodiesel Plant, unit in Ipameri - GO. Industrial Unit plant in Ipameri - GO. in Sorriso - MT; 2011 of Soy Protein 2014 2016 North Exit - Waterway 2018 Concentrate - SPC. Transhipment, in Itaituba - PA; Port Terminal in 1st loading in the Port Santana - AP. of Santana - AP. 6 Values that make the difference 2018 Vision Mission In each one of its activities, Caramuru’s Provide food, inputs, biofuels and services collaborators carry in mind and heart solid Be a Business Group recognized for: with quality, meeting the needs of customers values that transmit professionalism, ethics • Serve customers and consumers with and consumers, generating values to society, and commitment to customers, suppliers, quality products and services; suppliers, employees and shareholders. partners and the whole society. • Operate differentiated commodities; • Generate value in consumer products with a strong brand; • Have strong logistics; • Invest in continuous training for our employees and offering challenges to their development; Values • Act nationally and internationally; • Ethics •Use management and production processes • Trust and mutual respect with updated technology; • Simplicity and transparency in the • Maintain a consistent history of profitability relationship and growth; and • Appreciation and development of • Act based on principles of environmental employees and social sustainability. • Discipline and professionalism • Boldness and creativity • Perseverance • Respect for the environment 7

General Ethical Principles and Postures

• Look after the interests of the company. • Fulfill the promise and not make promises that can’t be kept. • Maintain simplicity and honesty in actions. • Seek company profitability as a result of honest and ethical work. • Commit to the truth and to what is just. • Be aware that there is no right way to do what is wrong. • To act in the protection of the interests of the company and to reject the issues of bad faith. • Impartiality in decisions involving people. • Maintain personal relationships characterized by sincerity and authenticity. • Use only advertisements that lead the customer or consumer to have a clear and faithful image of our products and services. • Encourage teamwork which should be characterized by the spirit of mutual respect and trust between people. • Be proud of what we do, humility in the face of the positive results we have achieved, and the courage to quickly correct mistakes. • Maintain a relationship with the public sector based on the principles of our Code of Ethics and compliance with legal regulations. • Act in accordance with ethical principles and good conduct in the internal and external environments. 8

LOGISTICS/PORT

SOYBEAN ORIGINATION AND INTERNATIONAL GENERAL WAREHOUSES COMMODITIES

FINANCIAL AND CORN ADMINISTRATIVE FOMENTATION

INDUSTRIAL NEW AREA HR AND BUSINESSES Corporate INSTITUTIONAL Governance CONTROLLERSHIP RELATIONS The management of Caramuru operates in an integrated manner COMMERCIAL IT AND following the best practices of PROCUREMENT corporate governance. With the shared management strategy, The Group seeks to give more agility to internal processes, and to offer national and international markets quality products that generate more value for society. EXECUTIVE BOARD 9

Apucarana Unit - PR Certifications Itumbiara unit - GO (soy) From manufacturing to storage, from production to packaging, from Manufacture of corn transportation to port operations, every flour, grits, corn kernels, fine corn activity carried out by Grupo Caramuru and hominy, cornmeal, its partners follows the highest levels of cream and flakes. quality and safety. Our activities meet the Food safety requirements of national and international HACCP Environmental Quality Health and Safety clients, and are inspected periodically by Management System Management System Management System independent audits. Besides that, all of ISO 14001:2015 ISO 9001:2015 OHSAS 18001:2007 our NGMO products, such as SPC, lecithin Manufacture of corn and soybean meal comply with Kosher flour, grits, corn kernels, fine corn certification, which respects the Jewish law, hominy, cornmeal, Research and development, production of soybean and sunflower and Halal certification, which follows the cream and flakes. meals, crude soybean and sunflower oils; degummed soybean oil; refining of soybean, corn and sunflower oils; filling of soybean, corn, Muslim food legislation. Quality Management System sunflower and canola oils compounded and flavored in the industrial ISO 9001:2015 plant of vegetable oils.

Ipameri unit - GO

ProTerra Trade and Production of flaked production of raw Grupo Caramuru has always sought to soybean meal, ground materials for animal soybean meal, Hi-Fiber innovate and stand out as a pioneer in the feeding. soybean husk meal and Brazilian market. The company was the Hipro soybean meal. first to adopt the ProTerra seal in 2006, Commercialization Food system and Exportation for Animals reinforcing its commitment to society and GMP+B3 (2007) GMP+B2 (2010) Food safety the preservation of the environment. To HACCP learn more about this certification, check out the details in Chapter 3 of this report. Production of soybean meal, degummed oil, crude oil and refined Production of raw soybean oil; production of bran, crude materials for animal oil and refined sunflower oil; raw oil feeding. and refined corn oil; refined canola oil; aromatized and non-aromatized composite oils. Food Safety System Food safety for Animals HACCP GMP+B2 (2010) 10

Unit of Santos - SP (Terminal XXXIX) Itumbiara Unit - GO (corn) São Simão Unit – GO

Products of bagged corn (raffia or big bag sack) produced in the Production of soybean beneficiated corn line, meal, degummed soybean milling and granulating oil and soy lecithin. from the receipt of the corn to the final product Environmental Management System shipment. Food Safety ISO 14001:2015 Food Safety HACCP HACCP

Sorriso Unit - MT

Production of raw materials for Production of raw animal feeding. Quality Management Health and Safety materials for animal System Management System feeding. ISO 9001:2015 OHSAS 18001:2007 Food Safety Food Safety System for Animals Provision of port operation services: reception, storage GMP+B2 (2010) and dispatch of products of plant origin in bulk. System for Animals GMP+B2

Storage and transhipment of raw Production of crude Production of Hipro materials for animal oil, soybean meal, soy soybean bran, feeding. lecithin and soy protein degummed soybean concentrated. and lecithin oil.

Marketing and Exportation Quality Management Food Safety System GMP+B3 (2007) HACCP ISO 9001:2015 Port Operation: reception, storage, Production of crude shipment of soybeans oil, soybean meal and in grains, Hipro soybean soy protein concentrate meal and pelletized (SPC) and soy lecithin. citrus pulp meal and Production of soy protein concentrate, soy lecithin. with identification of Food Safety food safety hazards. Quality Management System Food Defense HACCP ISO 9001:2015 IFS 11 2 Together We Are Efficiency With fine corporate governance and directories that adopt an effective shared management strategy, Grupo Caramuru carries out its activities with efficiency and quality. 12

Origination From receiving to processing Volume of raw materials of the raw material received in 2018: more than 2,400,000 With the harvest from February to April 2018, Grupo Caramuru reached the targets set for that year. tons of soy, corn and The positive result allowed the full utilization of the sunflower. processing capacity of its industrial plants. Grupo reduced costs and optimized the performance of its entire maize, soybean and sunflower production chain, but mainly, NGMO soy.

In 2018, the main program carried out by the Origination Directorate was the incentive to the planting and origination of NGMO soybean by producers in the state of Goiás. With the measure, Grupo Caramuru fulfilled its goal defined in the 2018 Vision.

The relationship with these producers is based on the reciprocal trust pillar. To strengthen it, Caramuru field teams periodically conduct training and share best practices and up-to-date market information. Thanks to this partnership, the soybean producer has been obtaining good prices in the future marketing, positively taking advantage of the oscillations of the market.

In order to meet the requirements of the European market and follow the best practices in the area of sustainability, in 2018 Caramuru implemented a system to monitor the producer’s areas, thus guaranteeing the acquisition of quality raw material within the legal norms. 13 Soybean Active participation in internal Teamwork and integration and external markets among the areas of With favorable weather, 2018 was a good year Origination, Logistics, for soybean production. According to data from Commercial, Industrial Companhia Nacional de Abastecimento (CONAB), and Porto provided more about 119 million tons of grain were produced in competitiveness to Grupo Brazil. With efficiency and dedication, Caramuru was able to act in the purchase of grains and in Caramuru. the supply of bran and oil for the various markets in which Grupo is present.

In the European market, for example, we strengthened our participation in the Commodities area, also offering, in addition to bran with added value, NGMO Soy Lecithin. These two products allowed the generation of good results, and their business contributed in a sustainable way to the strengthening of the agribusiness chain, supporting producers and the community.

With a refined and integrated strategy, we optimize our multimodal logistics, transporting bran and grains in a more economical and sustainable way. This positioning, together with the integration between the Origination, Logistics, Commercial, Transparency in Industrial and Port areas, provided Grupo with the relationship, greater competitiveness. daring, creativity and

Inspired by our boldness, creativity, transparency innovation are some in the relationship with partners and respect of the values that for the environment, we will continue to invest drive our participation in the domestic and foreign markets in 2019, reaffirming our participation in the soybean and in the national and its derivatives production chain. international markets. 14 Promotion A new focus on NGMO soy

The Board of Promotion was created to work on research and innovation In addition, the Board of Promotion develops the Sustain Program (read in the segment of NGMO soybeans, seeking greater productivity and more about the initiative in Chapter 4 - We are People) and is responsible quality, fundamental for the acceptance of the producer. To develop the for the implementation of the Agrotools TerraSafe system, which aims study of the seeds, Caramuru established partnerships with recognized to ensure that all the raw material purchased by Caramuru comes from institutions, such as the Universidade Federal de Viçosa (UFV), the leglized areas. Universidade Federal de Uberlândia (UFU) and the Empresa Brasileira de Pesquisa Agropecuária (Embrapa). In 2018, the new Board of Directors also carried out trainings, registrations, visits and audits on 245 soy producers. In October, the registration of 1,300 Throughout the year, the partnership with UFV resulted in the planting producers in the TerraSafe program also began. of 1,500 hectares of two new varieties of soybeans in Mato Grosso. In Goiás, five new varieties of seeds were launched, the result of the By 2019, the goal is to market 6,000 tons of NGMO soybeans, a Group’s work in conjunction with Embrapa. The novelty 40% increase over 2018, with the launch of five new seed was presented to rural producers in five events held varieties. This goal also aims to increase the origination by Caramuru and known as Field Days. and processing of non-transgenic soy by Caramuru. 15 Corn A challenging year

The year 2018 was one of great challenges for the Corn business. In addition to the downturn in the corn derivatives market, exports of farinaceous products also suffered a significant drop in sales volumes due to the fall in prices and lack of imports from Angola. In the domestic market, the retraction in sales occurred due to high prices, which were higher than the settlement of derivative products.

For the next year, the expectation is that the farinaceous market will adjust to purchase prices for corn grains and for Angola to once again import the farinaceous from Brazil. 16

Sunflower Positive results that stimulate new investments

Each year, Caramuru’s industrial processes become more integrated and aligned with the best management and quality practices. The company has been investing in knowledge, management and new technologies that add value to the company and to the improvement of its products. In 2018, it was no different for the Sunflower area.

Continued efforts had a positive effect, and the Group recorded a significant increase in comparison with the previous year. Sunflower oil stamped the largest growth in tons in this category in the last five years. Meanwhile, sunflower meal also had a special year, with three-digit growth, corresponding to 120% higher, compared to the year 2017.

The year 2018 brought favorable growth for Caramuru in the area of Sunflower. Great and important results achieved thanks to investment and dedication. 17 Commodities Differentiated products that add value to customers

Annually, Caramuru reaffirms its position as a protagonist in the Brazilian market. The Group has been taking positive steps and achieving consistent results in the implementation of policies and in the execution of projects aligned with the 2018 Vision. By adopting cutting-edge technologies and formalizing partnerships with rural producers, Grupo adds more value to its production chain and stands out among customers and partners.

In the area of Commodities, to meet the demands of the national and international markets, Caramuru seeks to market differentiated non- GM products. The company has invested in products of higher added value, such as Biodiesel, Glycerin, Meal, Concentrated Soy Protein and Lecithin.

In 2018, Caramuru continued its incentive program for the origination of NGMO soybeans, marketing millions of kilos of seeds in the year. The strategy halted the decline in planting and re-established the bonus paid to local producers. 18 Industrial A year of changes and breakdown of paradigms

Many challenges and project consolidation. This is how the year of 2018 in the Industrial Board can be summarized. The cogeneration of energy, mainly in the units of Itumbiara and Sorriso, was one of the projects that provoked more positive impact on the Group, with great cost reduction and increased competitiveness.

The bio-diesel production plants also had a good evolution, and Sorriso went on to work at its full capacity. As a result, Caramuru itself consolidated in the segment, which brings a competitive differential to the Group.

The biggest challenge, however, was in Corn, which had its exports reduced. This situation required the reconfiguration of the operation of the Apucarana plant to adapt production to the current scenario.

In Soy, the year was satisfactory, mainly in NGMO, with emphasis on the large export of SPC. The product gained in quality, with a good margin of export and also results in the domestic market.

The attention with the teams led the Industrial Board to invest in constant training, with the training of employees and the promotion of projects related to safety. All this to ensure the performance and well-being of the professionals.

For 2019, the major goal is to seek new markets to resume the great export of corn. In addition, Caramuru plans to add even more value to its industrial plants. 19

New businesses Investments to grow sustainably

In the year 2018, the processing of soy continued to be explored to full potential. The investment in renewable energy brought benefits not only to the environment, but also to Caramuru, which remained self-sufficient in electricity and reduced industrial costs.

By replacing the use of fossil fuels with clean and renewable energy sources, the Sorriso Unit’s biodiesel plant contributed to reducing environmental impacts.

The first year of operation of the North-Exit, which includes the Itaituba (PA) Road-Hydroviary Transfer Terminal and the Porto de Santana (AP), was another important milestone for Caramuru in 2018. With it, the SPC flow became even faster and more efficient. 20

Logistics Intermodality of transports ensures more efficiency

In Logistics, 2018 was mainly marked for being the first year of operation of the North-Exit project. The Itaituba transshipment terminal, located in Pará, serves to drainthe SPC bran to the Santana port, in Amapá, by means of the Tapajós River waterway with the Amazon.

In Itumbiara, the highlight was the conclusion of the investment in the packaging expeditions and in the expansion of the Warehouse, which helped to optimize the resources and allowed greater operational efficiency.

However, the biggest challenge of the area was dealing with the strike of the truckers, which stopped the country. Despite the difficulties, Caramuru was able to manage its logistics, including with water and rail transportation, which contributed to a positive outcome.

In general, the expected results for the year were achieved, with a reduction in costs in the area and an increase in the share of transportation in more competitive modes. In addition, the investments contributed to the Group’s sustainable growth and differentiated us in the commodities market, adding value to the services offered. 21 General Warehouse Promoting the integration of the Caramuru production chain

In its operational structure, Caramuru has five industrial units and 64 warehouses - located in the states of Goiás, Mato Grosso and Paraná. Its strategically positioned units support the Grupo’s logistics and have the capacity to store about 2 million tons of corn, soybean and sunflower grains.

In 2018, the biggest challenges in the area were the logistics strategy for the storage and transportation of soybeans to the processing industry in Ipameri (PR), where 427,758 tons of grain were processed.

Another challenge faced by Caramuru in this period was related to the large volume of exported corn - about 25 million tons. In this regard, we highlight the second-crop corn, marketed in advance by the tradings, which reduced the volume of receipt in our warehouses. 22 Commercial Consolidated relationships and good results

The year 2018 was a year of consolidation for the Commercial Directorate, where dialogue between internal and external teams prevailed. In order to increase the closeness among employees, one of the activities developed was the first meeting of the internal team with the Representatives Working Group held in May, focusing on the launch of new products. In July, the Organizational Development Program of the Commercial Directorate generated 15 actions that sought improvements for the area.

The main challenge was to work in the domestic market, where it was necessary to seek the balance between the volume of sales and the margins necessary to preserve profitability. And the results came: just in the Mix products category, there was a growth of 10% compared to 2017.

But the biggest highlight of the portfolio was Sinhá’s special oils category, which was the third best-selling brand in all of Brazil and the second in , Espírito Santo, Rio de Janeiro and Central-West regions.

In 2018, Sinhá also launched new products on the market: the Pasta Seasoning Flavor; the Potato Straw in the Traditional and Extra Fine versions; and Special Mixes, in the flavors Milanese, Poultry and Pork, Fish and Shrimps and Mixture for Preparation of Hamburger. All this, to expand the Sinhá portfolio and attract even more consumers to the brand. 23

For its performance over the years, Sinhá received, in May of last year, the Prêmio Marcas Inesquecíveis (Unforgettable Brands Award) in the category of Corn Pasta, awarded by the Day of Communication System of Teresina (PI).

By 2019, when Sinhá turns 40, the goal is to focus on relationships with employees and the end consumer. Because we believe this is the best way to make the Sinhá brand even stronger and more recognized in its market of operation.

A specific area for animal consumption

In order to meet the needs of animal breeders, whether domestic (dogs and cats), cattle, pigs or fish, Caramuru has raw materials for the manufacture of soybean, corn and sunflower based feed. As for birds and small domesticated birds, the Group has the Bontrato line, which includes among its products canary grass, millet and sunflower.

In 2018, the company maintained the sales volume when compared to the previous period, preserving its positive results. For 2019, the goal is to ensure the maintenance of sales volume. 24 Human Resources and Institutional Relations Training to develop and professionalize

The year of 2018 in the Human Resources and Institutional Relations Board was marked, mainly, by the investment in leadership development. To this end, 20 Learning Groups were set up, in which 164 managers participated, including foremen, supervisors, coordinators and managers. The objective of the action was to sustain and deepen the concepts of decision-making processes for these audiences.

And to bring even more transparency and agility to decisions, Caramuru started the Organizational Development Process (PDO), which also helped to consolidate the new management model by sharing. With these programs, Grupo aims to contribute to the development of its employees and strengthen its professionalization.

Another important advance was the construction of the 2025 Vision, which establishes Caramuru’s guidelines for the next seven years, along with a review of Mission and Values.

In 2019, the challenges to achieve the 2025 Vision will be disseminated throughout the Group, as will the Caramuru Integrity Program, which aims to increase transparency, ethics and conduct with which the company conducts its business and relations. 25

Information Technology Promoting the integration of systems and employees

Optimizing and improving internal processes is a permanent search of Caramuru, which has been investing heavily in new technologies to reduce operational costs and expand the processing capacity. These ongoing investments in the area of Information Technology and Procurement are allowing a more accurate management by performance indicators, with direct impact on speed and scalability. In order to follow fiscal compliance, digital systems, tools and platforms have also been periodically updated, with the implementation of E-Social being the most relevant in 2018.

Throughout the year, Grupo Caramuru initiated the implementation of a robust and strategic information security management system, with new protocols and internal processes. During this period, the Group also developed a new information security policy. New innovative projects in the area of security will continue in the coming years.

In 2019, Caramuru’s goal is to continue innovating, with the implementation of a commodity management system in place of the current one, and a new Business Intelligence platform. The tool will contribute to the effective In 2018, Caramuru continued management of results by segment. to invest in new technologies, management tools and integrated platforms to make its internal processes more effective. 26 FInancial Controllership and Administrative Accurate accounting and fiscal planning A year of two important milestones In 2018, Caramuru continued its investments in control projects to comply with the Tax Compliance and compliance standards of the company. The initiatives involved the areas of Tax Receipt Management, Legal, Compliance and Billing, which worked in tune with the Unit Controllerships. The year 2018 brought very satisfactory results to Caramuru, which focused on higher value-added products, The Group adopted the automation of processes for the calculation of ICMS and tax incentives, in reducing those with lower margins. In addition, the Group addition to promoting trainings, process improvements and procedural updates. Throughout the has exceeded positive results achieved in previous years. year, the Controller’s Office implemented new tools to manage the demands of the Controller’s areas, focusing on the standardization of tax/tributary opinions. In terms of Administration and Finance, the year also had challenges with the credit market going through a Caramuru also consolidated its management tools, enabling the computerization of almost period of great demands. For 2019, although the credit 100% of the service and filing of documents. With the qualification of teams and the structuring market remains cautious, it is expected to surpass the of the support areas, the results and goals were gradually achieved with efficiency and quality. great results achieved in 2018.

For 2019, the expectation is to continue looking for innovative tools that make internal processes even more assertive and in tune with legislation.

Consolidation of Compliance and effective use of our management tools contributed to the achievement of good results. 27 GT-2018 Positive results confirm Grupo’s efficiency With the conclusion of Caramuru’s 2018 Vision, the Working Group concludes a cycle with very positive results in all the initiatives developed. But this satisfactory return was only possible thanks to the commitment and performance of each one of the professionals of different areas that compose the GT-2018 and act, day by day, to seek improvements for the company.

Throughout the year, GT-2018 finalized the Freight Project, continued the Raw Material Project, worked on the Project for the Implementation of Improvements pointed out by the Internal Audit and consolidated the Project for Industry Improvements.

In addition to developing an integrated vision and raising the level of maturity of Caramuru’s Process Management, the GT-2018 worked to increase productivity, identified opportunities for computerization, developed ways to reduce costs and assisted in Operational, Accounting, Legal and Tax compliance.

Now, the Working Group’s goal is to complete ongoing projects and develop initiatives based on the 2025 Vision, always geared towards innovation. 28 3 Together We Are Attitude Innovative and sustainable initiatives are part of Caramuru’s routine. Protagonism, ethics and attitude are values that guide the activities of the employees. 29 Effluent Treatment Stations Technology to preserve an expensive resource for all

As water is a precious and fundamental asset for our survival, Caramuru seeks to adopt the best practices of sustainability to preserve this finite resource to the maximum. With the implementation of Effluent Treatment Stations in its units, Caramuru started to reuse the treated water in the ETEs in various sectors of the company, such as plants, cooling towers, cleaning and gardening.

The use of this technology in the industrial complexes of Itumbiara, São Simão, Apucarana, Ipameri and Sorriso has allowed the generation of a savings of 150 thousand liters of water per hour. In addition, with the ETEs, we have reduced waste emissions in the public network to zero. The technology of the ETEs allowed Grupo Caramuru to reuse the treated water from the stations in plants, gardening, cooling towers and cleaning. 30 NGMO Products that conquer national and international Recycling Station markets Awareness raising and socio-

For the production and processing of non- economic development initiative transgenic (NGMO), Caramuru has three Caramuru’s initiative to support the Recycling units, located in Sorriso (MT), São Simão and Station project is aligned with the Group’s Itumbiara (GO). In order to respond to national Private Social Investment Methodology and and international demand, different areas of anchored in the National Solid Waste Policy, Grupo operate in an integrated and innovative developed by the Federal Government. The way. From seed harvesting to storage, through program, conducted in the city of Itumbiara logistics and transportation, to delivery of (GO), seeks to promote environmental the final product in Brazil and worldwide, the awareness raising, social inclusion of collectors company follows strict international quality and income generation for these families. certificates. Annually, all recyclable material collected in By acting strategically in the export of the unit is destined for the station. In this way, NGMO’s, Grupo Caramuru opens up business the program also contributes to the awareness opportunities in niche markets. Its products raising of Grupo Caramuru employees. have already conquered markets in Germany, South Korea, Denmark, the United States, Italy Through the Recycle Station, Caramuru helps and Turkey, as well as several . pickers to regularize their professional activity, organizing themselves in cooperatives or associations. 31 Soy Protein Concentrate ProTerra More innovation in human and animal feeding Sustainable attitudes with international certification SPC’s unit industrializes higher value-added soy products, making processing and job creation competitive in Sorriso, Mato Grosso, as well Grupo Caramuru was one of the pioneers in the food segment to adopt as giving the state its first industry of soy protein concentrate. the ProTerra seal in 2006. The program sets international standards of ethics, social responsibility and sustainability for all stages of agricultural SPC is a product with a high protein content, above 60% and environmentally production, transport, storage and processing of commodities. correct. Its main applications are in aquaculture, as a substitute for fishmeal in feed; in pig farming, poultry farming, echinoculture, cattle farming; and The seal is administered by the Fundação ProTerra. To maintain it, Caramuru in human food. annually undergoes audits in its units, factories and warehouses. The supplier producers are also evaluated. According to the program, certified The SPC is drained by highway to the Caramuru transshipment terminal in companies must implement initiatives of preservation of wet forests, Itaituba (PA), from there by waterway, through the Tapajós and Amazonas riparian forests, wetlands, marshes, steep slopes and indigenous areas. rivers, to the company’s Terminal at the Port de Santana (AP), all of which is shipped by sea to the Asian, South American and European markets.

In addition to promoting the preservation of natural resources and respect for human rights, the ProTerra seal encourages the training and technological transfer of the production chain. 32 Biodiesel Sustain Program More benefits for the Growing along with farmers environment and society The year 2018 was one of great achievements for the Sustainability Program for the Farmer of Caramuru. Aimed at the development of Caramuru constantly invests in renewable and the company’s farmers and rural producers, the initiative emerged as sustainable technologies that add value to a specific demand in 2015, generating the promotion of trainings and the Group, to society and to the environment. sharing of the best management practices. The Group also monitors In 2018, Caramuru participated actively in the raw material suppliers in order to comply with current regulations the biodiesel auctions. Throughout the year, and legislation. with two plants in Goiás and one in Mato Grosso, the company continued to produce In its trajectory, the program grew in a sustainable way, evidencing this biodegradable and ecologically correct its importance for the Group’s businesses to its customers. By 2018, energy, which emits less polluting gases in these courses and workshops brought knowledge and information to the atmosphere. 245 farmers. Indirectly, about 1,000 suppliers were positively impacted by the program. Investments in biodiesel have made possible a greater diversification in the markets in which Caramuru is present. Integrated into The Sustain Program benefited in 2018, 245 the National Program for the Production and farmers through workshops, meetings, events Use of Biodiesel (PNPB), the company has contributed to the generation of jobs and and trainings. Indirectly, about 1,000 farmers incorporated into its business thousands of benefited throughout the year. family profile farmers.

Through investments in innovative technologies and renewable energies, Grupo Caramuru has cooperated with socio-environmental sustainability, generating jobs and reducing the emission of gases in the environment. 33 Social Fuel Seal Family Farming A differential achieved Program dedicated to Awarded to Caramuru for 12 years by the Special family profile farmers Secretariat of Agriculture and Agrarian Development - SEAD (former Ministry of Agrarian Development - For over 10 years, Caramuru has provided farmers MDA), the Social Fuel Seal is a differential of the Group, with a family profile a solid partnership, which aims which believes in the biodiesel market and continues at the productive inclusion and the aggregation of to invest in the segment at its plants in São Simão and value of its properties. In 2018, the Group’s agronomist Ipameri, Goiás, and Sorriso, in Mato Grosso. team assisted 1,100 producers directly, bringing to the attention of these partners differentiated information, Integrated with the Federal Government’s National training courses and new technologies. As a result, they Program for the Production and Use of Biodiesel (PNPB), have improved their properties, increased productivity the Social Fuel Seal gives Caramuru the possibility of and increased income generation. participating in biodiesel auctions. Organized by the Agência Nacional do Petróleo (ANP), these auctions aim Aiming at the improvement of these farmers, in 2018, to offer volumes demanded by the distributors with the Caramuru carried out 23 direct technical trainings, best batches and prices. The stamp of the Seal, which attended by more than 2,500 people. The Group’s is also adds value to its business, allows Caramuru to come out constantly investing in the qualification of its agronomist in front, as their offers are evaluated as a priority. engineers so that they are always prepared to carry out the trainings and tend to small producers.

By 2019, the expectation is to add even more value to the Family Farming program, guaranteeing its longevity in the activity in a sustainable way.

In 2018, Caramuru assisted 1,100 producers in a direct way. In addition, the Group promoted 23 trainings throughout the year to more than 2,500 people. 34 4 Together We Are People Caramuru’s activities go far beyond the processing and storage of grains and commodities. The Group also invests in the social development of the communities in which it is present. 35 Human Resources Investing in who makes Caramuru happen To help develop and raise awareness among Health in the day its employees, Caramuru has promoted a Maintaining the health and quality of life of series of internal projects and events. On Dia its employees is fundamental for Caramuru. training enabled leaders to develop a coaching do Trabalhador (Labor Day), one of the most Therefore, in addition to the annual vaccination dialogue, as well as providing an environment important celebrations for the Group’s, more campaign and workplace gymnastics, the for integration and exchange of experiences. than 2,500 employees were honored and Group is committed to investing in initiatives received a gift from the company. that result in team awareness raising. A concept that communicates Children also have their turn in Caramuru, Once again, Caramuru developed a concept which always promotes a special event to Enable to progress to support the planning and communication celebrate their day. In 2018, nearly 2,000 toys The year 2018 was also marked by several actions throughout the year. In 2018, the theme were delivered to the employees’ children. trainings. In all, there were 265 trainings, which chosen was We are one. We are all. Building Our mobilized the participation of 7,946 people. Tomorrow’, which worked on the importance The celebration of the end of the year is always A highlight for the Coach Leader, held for 60 of team collaboration and integration. In important for the company which, every year, managers, between managers and directors. addition to being used in the identity of the performs an ecumenical cult. Last year, about 420 In addition to developing participants’ external campaigns, the theme was widely publicized employees attended the celebration in Itumbiara. competencies and internal capabilities, the in the Group’s communication vehicles and experienced by all employees.

Education for all Last year, the 2018 Vision cycle was also Once again, the Group delivered school kits to completed. An internal campaign encouraged employees in the first quarter of the year. In all, employees to reflect on the achievements there were 126 kits of Primary and 119 kits of obtained by Caramuru and to send Elementary School, totaling 245 kits. evidence of compliance with 2018 Vision, towards the In addition, Caramuru continued 2025 Vision. offering scholarships to its professionals. In 2018, there were 16 undergraduate scholarships and 14 scholarships for English courses. 36

SISMAQ: A more collaborative and custom event

Promote the integration and make the internal public aware of the care that should be maintained for the quality of life, safety and well- being of employees in their routine. These are the main objectives of the Internal Week of Health, Safety, Environment and Quality (SISMAQ), which engages employees from all Caramuru units.

The event - which happens annually - followed the theme ‘We are one, we are all’ and worked on topics related to health, accident prevention, education in traffic and preservation of the environment. The great differential of the 2018 SISMAQ was the collaborative format, in which professionals from different areas were able to contribute to its construction.

Another novelty was the agenda of the event, defined according to the particularities of each of the Group’s units. In addition to having theatrical skits addressing relevant themes, some employees were invited to give lectures in the place of market consultants. The intention was to value the internal public and work with a customized content, according to the reality of each place. 37 Safety and health Full attention to the employee Reduce the risk of accidents and preserve the health and quality of life of the employees. These are very important goals for Caramuru, which always seeks to share among its teams the best health and safety practices.

In 2018, the Group focused on some key activities such as improving the Fire Project, which included the expansion of the Landfill system for the entire Itumbiara plant and the enhancement of emergency lighting. Within this same initiative, Caramuru implemented a dust removal system for the bulk warehouses of the Corn and Soy plants, and expanded the hydrant network.

In addition to the traditional trainings already offered by the company throughout the year, Caramuru did a training on traffic education, developed by CIPA in partnership with the Military Police. The Orientation Blitz, as it was called, aimed to raise awareness of employees about the importance of safe driving in traffic and to provide tips on proper behavior in public transport.

In the area of Health, several activities were developed for employees. Held in April 2018, the vaccination against H1N1 influenza immunized 1,598 people, 823 being employees and 775 dependents.

Throughout the year, employees participated in other initiatives such as oral health assessment, health walk, workplace exercise, and campaign to prevent spinal problems when handling, lifting and carrying weight. There was also a theatrical blitz to raise awareness of the risks of In April 2018, during the alcohol use and smoking, and to conduct syphilis and hepatitis B and C campaign against H1N1 influenza, examinations with orientation and delivery of condoms. 1,598 people were immunized, 823 of whom were employees and 775 dependents. 38 Social projects Our responsibility to the community

A socially responsible company, Caramuru is not only focused on managing its business. Its attention and support are also directed towards caring for the communities in which the Group is inserted. Arraiá of solidarity As it happens every year, the Program was also The Learning with You Program, which in 2018 present in Arraiá of Itumbiara with the tent celebrated 20 years of existence, is one of Learning with You. The amount collected from the projects that most benefits children and the sale of the products during the festival days adolescents in the regions where it operates. was reversed between the partner schools. And to celebrate this milestone, Caramuru reformulated the brand of the Program and developed a seal commemorating the two Dance and art decades of Learning with You, which is being Also in 2018, children from the Dance project used by the entire group in social campaigns. of the Escola Municipal Alexandre Arcipretti participated in the first edition of the Itumbiara School Dance Showcase, held at the Teatro Achievements Municipal Maria Pires Perillo. The dance About 180 students of partner schools Vinícius presented was inspired by the literary work ‘Um de Aquino Ramos and Damores do Amaral, dia na Aldeia’ by the author Daniel Munduruku. in Itumbiara, participated in dance, music, capoeira and jiu-jitsu activities. In Apucarana, more than 200 young people were part of the Athletes of the Future. In Sorriso, 40 students had ballet classes during the year 2018. 39 Entrepreneurship For many years, through a partnership with Junior Achievement, Caramuru has been investing in projects focused on management, ethics and the practice of entrepreneurship. In 2018, more than 3,000 students participated in A well-wish to Itaituba the Personal Economy, Shadow Entrepreneur, Since the beginning of the Saída-Norte Personal Finance, Skills for Success, Our project, Caramuru was included in the World, Small Business, Let’s Talk about community of Boa Vista, located in Itaituba Ethics and the Advantages of Staying (PA). To get closer to the residents of the in School programs. region, the company promoted the social action Wish Me Well, which offered medical care and beauty treatment for adults, as well as recreational activities for children. What’s coming up... In 2019, the Learning with You Program should earn one more modality: a choir of students Recognition of volunteers of partner schools. In addition, the Group Caramuru understands that social projects should invest even more in environmental only work so well because a large network of education by establishing new partnerships volunteers works and dedicate themselves that will allow the holding of lectures on the daily. And to thank them for their hard work, conscious use of water. the company organized a special celebration to celebrate International Volunteer Day. Participants attended a presentation by Carla Galo, speaker and volunteer of the United Nations, on the theme ‘Volunteering: you are protagonist of the transformation’. 40 Animation Caramuru inserted in the community

Provide health services, activities for children and strengthen the relationship with employees, families and guests of the communities where Caramuru is inserted. These are the objectives of Animation, which, in its three editions of 2018, held in May, October and December, received, in all, more than 1,200 participants. The events ncluded the partnership of Sesi in leisure activities, always seeking the interaction between parents and children.

animação 41 5 Together We Are Results Numbers and statistics that prove and endorse the choices that Caramuru has made throughout its history. Data that reaffirm how much the Group makes the difference for the society. 42

1. Employee profile

1.1 - Profile Age Group Company Time (years) Total active employees as of 12/31/18 2.350 Up to 20 129 Up to 1 250 No. Employees hired in 2018 694 From 21 to 30 825 From 1 to 5 941 No. Trainees 7 From 31 to 40 724 From 6 to 10 512 No. Men 1,863 From 41 to 50 428 From 11 to 20 404 No. Women 487 From 51 to 60 209 From 21 to 34 241 No. Blacks / Browns 1,084 Over 60 35 Over 35 2 No. Persons with Disabilities or Special Needs 62 % of women in management positions 19.64% Relationship between highest and lowest % of blacks / browns in managerial positions 24.55% 39.00 remuneration in the company 43 2.1 - Food 2 - Internal No. of Meals served annually 849,211 No. of Distributed Staple Baskets 28,990 Social Food Expenditures BRL 18,412,871 2.2 - Private Pension Plan Indicators Extended to all employees Expenditures with Private Pensions BRL 1,482,209

2.3 - Health Health plans BRL 6,297,713 Dental Plans BRL 744,941 Life Insurance BRL 1,020,781 Occupational Safety and Medicine BRL 2,382,880 Health Expenditures BRL 10,446,315 Occupational Health and Safety Certification OHSAS 18001

2.4 - Education Graduation BRL 81,050 Education Expenditures BRL 81,050

2.4.1 - Employee Education Profile Employees w/Elementary/Middle School 1,885 Graduate Employees 397 Post graduate employees 68

2.5 - Training and professional development No. Trainings conducted 265 Expenditure on training and development BRL 1,884,000

2.6 - Profit share or profit participation Contemplates all employees Expenditure with PLR BRL 13,700,000

2.7 - Other Transportation BRL 3,854,382 Uniforms BRL 647,708 Recreation BRL 333,973 Donations / Gifts BRL 316,716 Expenditure with Others BRL 5,152,780

Total of the internal social indicators BRL 51,159,225 44 3 - External social indicators 5 - Use of natural resources

3.1 - Contributions to Society Annual energy consumption (Kw/h) 110,428,314

"Learning with You” Company- School Partnership BRL 181,514 Annual water consumption (m3) 3,144,356

Junior Achievement Program BRL 65,880 Annual consumption of firewood (m3) 33,227

Culture (Music, Theater) BRL 145,241 Annual consumption of fossil fuels - Diesel (liters) 552,574

Sport BRL 17,287 Annual consumption of briquette fuels - (t) 972

Child and Adolescent Rights - Annual consumption of chip fuel - (t) 898,801

Fighting Hunger and Food Security BRL 113,876 Annual consumption of shavings fuels - (t) 9,818

Miscellaneous Donations BRL 629,654 Annual consumption of sugarcane bagasse fuel - (t) 145,163

Sub Total BRL 1,153,452 Annual consumption of fossil fuels - Gas (t) 10,229

Taxes (excluding social charges) BRL 33,496,679 Annual amount of solid waste for Landfill - (t) (Common Waste) 79,128

Annual amount of solid waste for Composting - (t) 18,736 Total of the external social indicators BRL 34,650,131 Annual amount of solid waste for Recycling - (t) 29,746

Annual amount of solid waste for Incineration - (t) 2,838 4 - Environmental Indicators Annual Solid Waste Qty for Soil Recovery - (t) 8,563

Investments related to production / BRL 14,567,535 company operation 6 - Family farming Investments in programs and/or external projects -

Environmental Certification ISO 14001 Family Producers Served 814

Benefit granted in the soybean price BRL 9,119,282

Technical Assistance/Soil analysis BRL 220,809

Donations: Soil Analysis, Lectures, Soybean Seed, BRL 581,499 Sunflower Seed, Limestone and EPI’s

Training carried out with family farmers 32 45 7 - Fertilizer Training 9 - Customer and culture in the field Care service

1,031 Total complaints and critiques 275 100% solution NGMO Soybean Field Day participants In the company 273 100% Sustain Program, Sustainable Soil Management and Fertility, Family Farming Lecture - Process, In the Procon - 0% 3rd Copertã Technical Meeting, 6th Meeting of the In Court 2 100% Southwest Settlements of Goiás, (Teachnical 682 Training - soil management, green manure, nematoid participants and soybean disease, white fly control) Dissemination of the Platform of the Sustain Program, Increased Productivity x Profitability; PNPB and its new rules

8 - Caramuru Programs

Company-School Partnership: "Learning with You Program”

No. of students benefited 599

No. of Educators 21

No. of Volunteers 7

"Learning with You Program” costs BRL 181,514

Junior Achievement Programs:

Schools served 26

Volunteers that worked 133

Hours made available by volunteers 1,703

Students benefited by the programs of JA 3,678

"Junior Achievement Projects" Costs BRL 65,880 46

10 - Investments

Research and Development BRL 27,396,442

Improving Productivity BRL 13,403,465

Increase in Productive Capacity BRL 12,109,998

Logistics and distribution BRL 2,773,910

Information Technology BRL 2,791,836

Other Investments BRL 10,142,266

Total of the Investments BRL 68,617,918

11 - Generation and distribution of wealth

Total amount generated BRL 541,707,297 100.00% and distributed

Government BRL 61,895,464 11.43%

Employees BRL 177,344,729 32.74%

Funders BRL 199,740,263 36.87%

Company BRL 102,726,840 18.96% 47 Caramuru SAÍDA-NORTE Terminals Itaituba - PA - Waterway Transhipment Station Two warehouses with total capacity for 14 thousand tons. Meets the load of the Sorriso plant - MT and production of soybean protein concentrate (SPC).

Porto de Santana - AP – Port Terminal Three silos with a total capacity of 21 thousand tons to receive the product from the transhipment station of Itaituba - Pará bound for Europe.

ANHEMBI – SP Waterway Terminal Warehouse with capacity of 20 thousand tons to handle the load originated from the factory of São Simão - GO.

PEDERNEIRAS – SP Waterway Terminal Two warehouses with total storage capacity of 60 thousand tons to handle the load originated from the factory of São Simão - GO bound for Porto de Santos.

PORTO DE SANTOS – SP Port Terminal XXXIX Warehouse with capacity for 135 thousand tons, cmanaged in partnership with the company Rumo Logística, to handle its own cargo and that of third parties for export.

PORTO DE TUBARÃO - VITÓRIA - ES Storage capacity: 60,000t of grains and/or soybean meal

SÃO SIMÃO - GO Waterway Terminal (Paranaíba-Tietê-Paran Waterway)

Terminal I - Factory and Transhipment Soybean and soybean meal loading Shipping capacity: 500t/hour

Terminal II - Transshipment Loading of soy and corn Shipping capacity: 500t/hour 48 Warehouse Structures

GOIÁS MATO GROSSO PARANÁ Acreúna Lagoa do Bauzinho Água Boa Apucarana Almerindonópolis Boa Esperança Bela Vista Campo Novo Buriti Morrinhos Canarana Campo Alegre Feliz Natal Catalão Pensão Velha Ipiranga do Norte Chapadão do Céu Perolândia Lucas do Rio Verde Cocalzinho Nova Mutum Danisa Nova Ubiratã Portelândia Paranatinga Edéia Quirinópolis Querência Inaciolândia Rio Verde Santa Rita do Trivelato Ipameri Silvânia Sinop Itagel Vicentinópolis Sorriso Jataí 49 Industrial Units

ITUMBIARA - GO IPAMERI - GO (Parent Company) Soy processing Soy processing Capacity: 1,500t/day Capacity: 1,700t/day Production of refined oil: 600t/day Production of biodiesel Packaging of flavored oils: Capacity: 225 million liters/year 3,000 bottles-cans/hour Glycerin: 20,000t/yr Blow and package PET bottles: 36,000 bottles/hour

Production of soybean lecithin Capacity: 500t/month SÃO SIMÃO - GO

Processing of special oils Soy processing corn - sunflower - canola Capacity: 1,800t/day Capacity: 500t/day Production of soybean lecithin Corn processing Capacity: 500t/month Capacity: 24,000t/month Degermination: 960t/day Production of biodiesel Pre-cooked production: 5,000t/month Capacity: 225 million liters/year Color industry: 400t/month Glycerin: 14,000t/yr Popcorn production: 1,770t/month Energy Generation Cogeneration of energy Capacity: 2.1 MW Capacity: 8MW 50 Industrial Units

APUCARANA - PR

Corn processing Capacity: 15,000t/month Degermination: 600t/day Pre-cooked production: 1,500t/month

SORRISO - MT

Soy processing Capacity: 1,200t/day Soybean oil: 234t/day Hipro Bran: 850t/day Molasses: 212t/day

Production of Soybean Lecithin Capacity: 360t/month

Soy Protein Concentrate Processing Capacity: 600t/day

Cogeneration of energy Capacity: 8MW

Production of biodiesel Capacity: 94 million liters/year 51 6 Together We Are Tomorrow Work, dedication and commitment. This is how Caramuru builds its history. And that is what the Group wants for its future. 52

Our way of building tomorrow Collaboration. It is with this spirit of union and unity that Caramuru develops year after year. Grupo believes that teamwork is the key to collaboration and integration. It is also what ensures its growth, production, results and that, with certainty, will ensure its tomorrow.

In 2019, Caramuru wants to look to the future. And it will do so with great commitment, professionalism, ethics and respect. The goals will be to identify new business opportunities, seek innovations, strengthen the organizational culture and continue to recognize the key role of employees in this process.

The Group will be even more anchored in its principles, based on its Mission, its Values and the new 2025 Vision, which will have its topics worked on with the employees throughout the year. The Integrity Program, which aims to reaffirm ethics and conduct it in business, will be another point of support for the search for this tomorrow.

These are the pillars that will guide Caramuru to create an internal environment that is increasingly more complete and an ethical company before the market. With serious work, the Group hopes, with the contribution of all, to achieve new achievements and write its future.

We are one. We are all. Building our tomorrow.

Always with our way of being. 53

Caramuru Alimentos S.A. Tel: (64) 3404-0900 www.caramuru.com