Network of Countries and Markets MAIN HEADQUARTER Bagnacavallo RA

CORPORATE Areas

171 MILLION € TERREMERSE GROUP CONSOLIDATED FINANCIAL STATEMENT 2016

AGROSUPPLIES GRAIN & PROTEIN FOOD

5,500+ 73,2 MILLION € 30,4 MILLION € COOPERATIVE MEMBERS AND FUNDING MEMBERS INCLUDED 5,5 MILION € VOLUMES (thousand tons): 143,8 in agrosupplies PLANT ENGINEERING, IRRIGATION, Terremerse is a Co o p erative DRAINAGE across various production chains 50+ within the agri-foodstuffs sector. CONSULTANTS AND 0,6 MILLION € MEAT AGRICULTURAL RESEARCH & DEVELOPMENT An established player that is able to interpret the market TECHNICIANS demand evolution as well as to orient the productions of 15,8 MILLION € its members towards innovation, which can generate value, offering them services and searching for partnerships both in the 300+ final destination market for products and in the contributions FIXED AND TEMPORARY 14 MILLION € 3,2 MILLION € EMPLOYEES organisation market.

The main national and international market areas on which FRUIT & VEGETABLES Terremerse is most active are agrosupplies, grain and protein food, 10,2 MILLION € fruit & vegetables, and meat. 27,8 MILLION € By means of its activity, Terremerse creates value for the agrifood VOLUMES (thousand tons): 42,3 sector in a sustainable manner for consumers, members, FRUIT & VEGETABLES customers and employees, with total respect for people and the 116,6 environment. TOMATOES Over the years, many cooperative ventures from various regions 7,5 and sectors have brought their own resources and experience to VEGETABLES FOR INDUSTRIAL PROCESSING Terremerse. Founded in 1991, Cooperativa Terremerse is the result of the merger of various cooperatives under the common aegis of 0,7 MILLION € INCLUDED CORAS, whose own roots lie in Cooperativa Servizi a Coloni, in fruit & vegetables Piccoli proprietari e affittuari of Massa Lombarda, founded back in 1911 and, for all practical purposes, the ancestor of today’s Terremerse. Terremerse Group

Network Agrosupplies Controlled Companies R&S | Plant engineering 50% SEMÌA www.semiasrl.it It offers to the Italian and foreign markets an exclusive, large and complete catalogue of selected and certified sowing Grain & seeds. Company controlled by Terremerse and subsidiary of C.G.S. Sementi, Conase and Apros. 33% 33% Protein Foods TERRE DA FRUTTA It produces different fruit varieties appreciated by the market, guaranteeing homogeneous production volumes in terms of Fruit & quality, certifications and organoleptic properties. Vegetables BORGOBUONO www.borgobuono.it Company controlled by Terremerse and subsidiary of Associated Companies Gruppo Montorsi. It markets ready-to-cook products, LOGIKEM www.logikem.it portioned fresh meat, hams, and fresh and cured sausages for Nationwide logistics platform for the storage and supply of Meat the major customers of Modern Distribution, Food Service pesticides. In partnership with the road haulage firm Consar and Horeca. Logistica of Ravenna. AGRISERVICE 2016 ISA – ITALIANA STOCCAGGI AGRICOLI It is in charge of marketing Venture that is in charge of storing and preserving grains in technical equipment and integrated centres. Working in partnership with Molino Spadoni CONTROLLED COMPANIES products, in particular S.p.A. and Molino Boschi S.r.l. pesticides, in the province of Verona. POs and Enterprise Networks O.P. CEREALI Producers’ Organisation made up of Cereali Padenna and Progeo in order to sell and add value to the productions of its members. O.P. P E M P A C O R E R www.pempacorer.it Leading Producers’ Organisation within the Italian sector of fruit and vegetable production for the industry food processing industry. ROMAGNA COOP FOOD www.romagnacoopfood.it 51% 100% 100% 85% Enterprise Network created in order to take advantage – in exports – of the synergies among some of the main Italian agri-foodstuffs companies and wineries located in Romagna: Cevico, Co.Ind, Deco, Fruttagel, Molino Spadoni and Terremerse. % EQUITY PARTICIPATION Brazzolo di C. Iolanda di Savoia Busseto Burana Massa PARMA Ostellato Portomaggiore S. Giovanni di O. S. Giuseppe Filo d’Argenta MODENA Emilia Romagna S. Matteo Decima S. Pietro Capofiume Vignola Altedo Lavezzola Voltana Sant’Alberto Conselice Alfonsine Mezzano Massa Lombarda Santerno Piangipane Imola Bagnacavallo Lugo RAVENNA Russi Borgo Faina Filetto Faenza S. Pietro in C. S. Pietro in V. Pisignano Casola Valsenio FORLÌ Forlimpopoli pest control laboratory control pest butcher’s

PR. TOWN Agrosupplies Sale of Point Agrosupplies Other - facilities Quadrifoglio)(Il centre Grain possible are contributions which in Fruit & vegetable centre possible are contributions which in facility Test and centre processing Meat and BO Altedo Imola San Matteo della Decima San Pietro Capofiume Structures FC Forlì Forlimpopoli and FE Brazzolo di Copparo Burana Territory Filo d’Argenta MILAN Ceresara Jolanda di Savoia MANTUA Massa Fiscaglia Ostellato Portomaggiore

FLORENCE San Giovanni di Ostellato San Giuseppe Sansepolcro MO Vignola AREZZO PERUGIA PR Busseto Acquasparta TERNI RA Alfonsine Giove VITERBO Bagnacavallo

REGION PR. TOWN Agrosupplies Sale of Point contributions which in centre Grain possible are Fruit & vegetable centre in which possible are contributions Gallese Borgo Faina Lombardy MN Ceresara ROME Casola Valsenio Tuscany AR Sansepolcro Aprilia Conselice Umbria TR Acquasparta LATINA Faenza Giove POTENZA Filetto Terni Lavezzola Lazio LT Aprilia MATERA Scanzano Jonico Lugo VT Gallese Massa Lombarda Basilicata MT Scanzano Jonico Mezzano Sicily PA Camporeale Piangipane Pisignano Ravenna Russi PALERMO San Pietro in Campiano Camporeale San Pietro in Vincoli Sant’Alberto Santerno Voltana With Agronomica 3.0, a dedicated web portal developed by Terremerse, we process agro-weather data to support farmers in managing their crops. With the portal, the protection of the environment evolves towards the implementation of irrigation, nutrition and defense measures, thus improving yields, and food production quality and safety. Main products The system allows predicting the onset of major adversities. The portal is best utilized for highly safe integrated as well as PESTICIDES organic food production, certifying deployed techniques and FERTILIZERS inputs to consumers. SOWING SEEDS FEEDSTUFFS GARDEN PRODUCTS BENEFITS • Standardise productions over the years • Reduce cultivation costs • Maximise the use effectiveness of agronomic inputs Main commercial Brands Agrosupplies www.agronomica30.it Agrosupplies for Terremerse means expertise. Expertise because Terremerse can count on the contribution of its Research & Development department and a network of consultants that enables to draw the experimentation results near to production, offering customised support, adapting Customised support, thanks the knowledge acquired to each individual need and using up-to-date Technical Lines. to the expertise of cultivation consultants and The benefits the distribution capillarity of the Technical Network Terremerse works with a team made up of more than 50 of its points of sale technicians and consultants, who represent the maximum integration point of the Cooperative. Know how As a matter of fact, the Network is the instrument by means • Sale of agronomical and animal nutrition products of which we transfer to the agricultural businesses the • Technical network qualified for the protection of crops with technical and commercial information, orienting producers reduced application of phytosanitary products towards the use of products and the adoption of guidelines • Points of Sale that guarantee an excellent cost/benefit ratio. • Plant Engineering, Irrigation and Drainage • Research & Development Distribution capillarity and • Technical-agronomical, organic and integrated consulting and storage potential assistance Terremerse completes its ability to cover the territory with • Assessment of costs and customised cultivation planning about thirty points of sale disseminated across Italy and a • Agricultural waste collection centralized Goods Distribution Centre, offering wide-ranging • Organisation of technical update meetings distribution, great storage potential and service within the reach of members and customers. Research& Development

Thanks to the possibility to benefit from the contributions of our own Research and Development operation, we can Innovative projects provide our members and customers with exclusive and up- and ideas for Plant to-date information, which translates into: the agrifood sector TECHNICAL LINES in compliance with maximum cost- engineering, effectiveness from the point of view of production costs in relation to the results that can be obtained. drainage Experimental Research Instruments to and Test Facility and irrigation enhance and protect Our experimental research activities are designed to yield the value of crops improvements in crop and fruit production, using the systems techniques and products that innovation makes available. The Test Facility operates according to quality principles, in From the design to the construction of plants, from technical order to ensure correct field experiment data on product support to after-sales assistance, Terremerse offers a “turnkey” Main products efficacy, pursuant to Interministerial Decree no. 37529 of service, in order to enhance the yield of crops and, therefore, PLANT ENGINEERING DRAINAGE November 27, 1996. Experimental efficacy tests are carried the agricultural entrepreneur’s revenues. HAIL PROTECTION NETS PVC PIPES out in accordance with the principles of Good Experimental A wide range of products and a large spare parts warehouse POSTS PIPES COATED WITH Practice (GEP). enable to meet the multiple and various requirements within GALVANIZED AND COCONUT FIBRE STAINLESS STEEL WIRE PIPE FITTINGS • Protection and feeding protocols a constantly evolving sector, analysing the real needs of plants in relation to the specific grounds and paying the ACCESSORIES FOR ON-FIELD SURVEYS • Experimental tests on new formulations VINEYARDS, FRUIT FARMS AND QUOTED PLANS • Agronomic techniques optimization necessary attention to water saving and sustainability. AND PLANTS PROCESSING • Selection of varietals MONITORING CONTROL UNITS • Publication Services • Consulting and estimates IRRIGATION Pest control laboratory • Study and design of plants PUMPING AND FILTERING FITTINGS The purpose of the research activity is to test active • Construction of plants with materials from the leading STATIONS AUTOMATION SYSTEMS ingredients on populations of insects, suitably bred in brands STATIONS FOR SEWAGE FOR PLANTS IRRIGATION • Technical support with specialised personnel HUMIDITY MONITORING laboratories. PIPES TOOLS After-sales services • Selectivity tests • DRIP LINES PIVOT AND LATERAL • Efficiency testing • Large spare parts and equipment warehouse MICRO SPRINKLERS PLANTS • On-field populations monitoring Technical Main commercial brands assistance and training • Technical seminars and meetings • Corporate consulting • Demonstrative activities

Grain collection Certifications centres UNI EN ISO 22005:2008 soft wheat, durum wheat, barley traceability

REGION PR. TOWN Collection Storage Drying Compliance certificates Reg.to 834/2007 storage and sale Lombardy MN Ceresara of organically-grown cereals at these establishments: Filo Tuscany AR Sansepolcro d’Argenta (Fe), Massa Fiscaglia (Fe), Umbria TR Giove San Giovanni di Ostellato (Fe), Bagnacavallo (Ra), Sant’Alberto (Ra) Terni UNI EN ISO 9001:2015 reception, drying, conservation and Emilia Romagna FC Forlimpopoli delivery of protein cereals at these establishments: Filo Grain & protein FE Brazzolo d’Argenta (Fe), San Giovanni di Ostellato (Fe), Sant’Alberto (Ra), Massa Fiscaglia (Fe), Ravenna (Ra) Burana 2BSvs Std. 01 the collection, storage and marketing of foods Filo d’Argenta sunflower and soybean in the plants of: Filo d’Argenta (Fe), Terremerse follows up its producers from production planning Jolanda di savoia Jolanda di Savoia (Fe), Massa Fiscaglia (Fe), San Giovanni to marketing, including Massa Fiscaglia di Ostellato (Fe), Sant’Alberto (Ra), Ravenna (Ra), Ceresara collection, storage and drying, monitoring the entire process. (Mn), Sansepolcro (Ar) Ostellato Thanks to this, we can be the partner of leading players, such GMP+ B3 trading, harvest, preservation and delivery of S. Giovanni di Ostellato as: pasta and children products manufacturing sorghum in the plants of: Massa Fiscaglia (Fe), companies, mills, feed-stuff factories and oil industries, in RA Filetto San Giovanni di Ostellato (Fe), Ravenna (Ra) order to fully enhance the value of the products of members Ravenna Tuscany Region Agroqualità Brand: Sansepolcro (Ar) and customers. Terremerse agrees with the processing industry as regards the Sant’Alberto promotion of the producers’ adherence to the regulations and Santerno specifications of the most important companies in the sector, Side by side with growers guaranteeing constant supplies in terms of: to cultivate quality • volumes; Photovoltaic system • specific quality characteristics; clean energy Terremerse works in order to: and • traceability and certifications of productions, according to The Grain Centre of Massa Fiscaglia is fitted with a the principles of sustainability and food safety. • Ensure the best profitability to growers on the reference photovoltaic system covering an area of more than markets, by means of an integrated service that comprises: Terremerse increases the value of the main grains paying 1,000 sq. m, which is located on the storage warehouse > production planning and technical agronomical roofing and is able to produce an overall annual energy of particular attention to the development of organic products, processes tested by its own Research & Development providing assistance to its members in terms of spreading around 150,000 kWh, with power of around 142 kWp. sector and spread through its own Technical Network; Thanks to such system, the Centre can be energetically the most advanced agronomical techniques, collecting the > marketing and Value Enhancement Agreements; product in new plants with specific structures for collection independent for 2/3 of its needs,

and storage. • orient the crops, supporting the evolution of the end thus considerably reducing fuel consumption and the market demand with offer plans that can incorporate the emission to the atmosphere of both substances that have Traditional or silo bag storage most suitable characteristics in order to enable the best a polluting effect and substances that contribute to the Along with traditional vertical steel silos, Terremerse’s silo Our main Value results in terms of revenues from production. greenhouse effect. Enhancement lines bag storage system allows improving product preservation, All this appealing to: both financially and qualitatively. • High Quality Durum Wheat > flexibility and diversification of the commercial • Baby Food Line Durum and Soft Wheat The advantages of this competitive and flexible storage management activities, promoting, in particular, the • Biscuit-Industry Soft Wheat system are: annual contribution, which enables to place the product • Organic Bread Soft Wheat • low plant and management costs; on the market in the most suitable times and modes; • Barley for malting • low environmental impact; > increase of the product value when it is received and • GMP+ Certified Sorghum • natural co -conservation of the stored product; during the storage phase, through the qualitative 2 • differentiated storage, even for small quantities, intrinsic separation of individual productions; qualitative characteristics, improving the ability to Main conventional and > organisation of the logistics and transport services, meet client requirements and ensuring the necessary organic products during the collection phases. standards. SOFT WHEAT SORGHUM DURUM WHEAT SOYBEAN PADDY RICE SUNFLOWER BARLEY RAPE SEED MAIZE PROTEIN CROPS Fruit & Selected raw materials and artisanal processing vegetables Meats revaluing the fragrance Terremerse’s commitment is to build a sustainable future The Meat Processing Centre of Terremerse specialises in the and the naturalness of the for fruit growing and horticulture, with a renewed impetus processing and curing of meat, fresh and cured charcuterie ancient flavours, brought towards highly safe integrated and organic food production. and hams, for the retail and wholesale markets. taste This commitment also goes through a specialization 10,000 square metres for a Processing Centre equipped with back to the of and aggregation agreement between Terremerse, its own advanced production technologies and the most important contemporaneity reference Producers’ Organization (Pempacorer) and Aggregation and plant (ISO 9001) and process certifications (BRC, IFS), Apofruit, which offers a specific and differentiated offer for specialisation: which guarantee extremely high quality references and high Main brands the fresh market and the processing industry. healthiness standards. to build together Part of the energy needs is met thanks to a photovoltaic Each member can count on: solid foundations and a system covering an area of around 600 square metres, which • a reference technician that identifies, for each single sustainable future is able to produce 83,000 KWh per year with a power of company, a production process aimed at maximum around 74 KWp. product value enhancement, by using technical lines developed by the Research & Development department, Main conventional and Main products Ham factory so as to guarantee homogeneous production volumes in organic products R E A DY-TO-CO OK Production capacity of more than 160,000 hams per year, entirely terms of quality, certifications, organoleptic properties and PEACH APRICOT TOMATOFOR • LIGHT LINE: a right balance between meat and fresh automatised by means of the complete robotisation of the hams healthiness for the consumer; NECTARINE PLUM INDUSTRY vegetables and a reduced fat content; ideal products for movement. Large storage rooms to salt down the hams and • variety innovation, in order to offer greater and concrete PEAR POMEGRANATE OTHER VEGETABLES FOR those who watch their figure, without saying ‘no’ to some curing rooms, assigned to the care of highly specialised choices to agricultural entrepreneurs so as to plan their APPLE ONION INDUSTRY delicious meals. personnel guarantee high quality hams. KIWI POTATO future; • THE CLASSICS: the timeless and most demanded meat KAKI PUMPKIN • several fruit & vegetables collection centres near the most cuts, already prepared with condiments that exalt their Butchery WATERMELON OTHER relevant areas; In Voltana di Lugo (Ra), where the Meat Processing Centre of BABY VEGETABLES taste. • Transparent liquidations and accounts during the year to WATERMELON FOR FRESH • THE SPECIALITIES: a line that proposes Italian local Terremerse is located, there is a large point of sale open to the support the production cycle of partner companies. PRODUCTS MELON MARKET typical dishes, following ancient recipes and flavours. public. Fresh meat, cured pork salted meat and a large number • GOURMET LINE: tasty meat-based preparations following of gastronomy products obtained from selected raw materials recipes with carefully selected fresh ingredients of great and guaranteed by the professionalism of expert butchers and Main brands Certification value that guarantee fragrances and a handmade touch. counter staff. for distribution Reg. 834/07 Organic fruit • GRILL SPECIAL: the ideal complete line for barbecues. and vegetables FRESH MEAT CUTS GLOBALG.A.P. FRESH CHARCUTERIE GRASP CURED CHARCUTERIE HAMS Financial Services Terremerse offers its members the possibility to subscribe to a Savings Passbook (loans from cooperative members to the cooperative) with multiple benefits, including: interest rates with very favourable rents on demand and time deposits, invoices set- off, receipts and payments, etc., everything at no cost. In addition, Terremerse provides consultancy and promotes conventions for the access to the most suitable financial instruments to finance the production cycle and to support the Services investment of the associated agricultural businesses. Terremerse is always vigilant and ready to respond in a timely and FINANCIAL INSTRUMENTS accurate manner to the requests of its members and customers, Campaign current account providing them with useful tools and services. In addition, the Advance on contribution Cooperative serves as a bridge in order to structure and make Confirming accessible those services that make work easy for agricultural Financing for purchases of technical equipment enterprises and enhance its partners’ entrepreneurial character. and products by Terremerse Business Loan Publications Unsecured or mortgage loans For the purpose of information and dissemination, every two months the Cooperative publishes the Magazine called “Farm Help Desk” ‘Terremerse – territori e mercati in rete’ (Terremerse – territories In order to meet the growers’ needs to correctly fill in the and markets in network), a real work tool for agricultural ‘Quaderno di Campagna’ (Farm Notebook), in a national context entrepreneurs. in which the burden of bureaucracy often bites, Terremerse The publication includes the current topics of greatest interest has been organised to provide an ad hoc consultancy service for the reference period: phytosanitary indications (protection customized and calibrated to each company’s discrete needs: and weeding), fertilisation, irrigation, focus on new products, “Farm Help Desk”. A team of expert professionals for the news from markets and production chains, gardens, small farms, preparation and drawing up of the Farm Notebook, which is able cooking. to provide assistance for filling in the document and so much Distributed by means of postal delivery, it can also be read from more than that. the terremerse.it site, and it is available at the AppStore for iPad. Every year, Terremerse – through the activity of its own Research & Development department – prepares sectoral essays that are aimed at elaborating upon and illustrating the agronomical and economic aspects of certain crops, in order to summarise, in a sector related logics, all the useful indications. • Spring Grains Special • Autumn-Winter Grains Special • Fruit & Vegetables Specials Via Cà del Vento, 21 - 48012 Bagnacavallo (Ra) Tel. +39 0545 68111 Fax +39 0545 68068 [email protected] www.terremerse.it

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