BRAZILIAN DRY BULK CARGOES MARKET:

NEW POSSIBILITIES FOR GRAIN CARGO FLOW, USING THE NORTHERN LOGISTICS, INFRASTRUCTURE AND PORTS. BRAZIL WILL BE THE WORLD’S BIGGEST SUPPLIER FOR GRAINS IN 2020 WHAT’S OUR CURRENT SCENARIO ?? DRY BULK EXPORT OVERVIEW

TOTAL DRY BULK CARGO HANDLING PUBLIC PORTS X PRIVATE TERMINALS YEAR TOTAL CARGO % COMPARISON YEAR PUBLIC PORTS PRIVATE TERMINALS TOTAL CARGO 2012 438.238.348,00 - 2012 134,310,307.000 303,928,041.000 438,238,348.000 2013 450.528.283,00 2,80% 2013 145,358,665.000 305,169,618.000 450,528,283.000 2014 464.273.735,00 3,05% 2014 149,527,887.000 314,745,848.000 464,273,735.000

MAIN DRY BULK COMMODITIES EXPORTED - 2014 COMMODITIES TOTAL CARGO 2014 - BREAKDOWN IRON ORE 338,152,057.000 SOYABEANS 43,997,828.000 32% SUGAR 21,432,765.000 MAIZE 20,917,399.000 SOYABEAN MEAL 13,226,277.000 BAUXITE 8,039,323.000 ALUMINA 8,008,450.000 PIG IRON 2,211,539.000 WOOD 1,690,800.000 68% MANGANESE 1,513,315.000 KAOLIN 789,239.000 RICE 715,147.000 SALT 700,282.000 PUBLIC PORTS PRIVATE TERMINALS OTHER MINERALS 682,655.000 PET COKE 486,436.000 WHEAT 483,819.000 OTHERS COMMODITIES 1,226,404.000 TOTAL DRY BULK EXPORTED: 464,273,735.000 SBS AND MAIZE PRODUCTION ALL OVER BRAZIL - 2014/2015 CURRENT SCENARIO AND FORECASTS FOR PLANTATION AREAS

9.7 million hectares

EQUIVALENT AREA:

PORTUGAL ACTUAL 2014/15: 31,504 mi/ha ACTUAL 2014/15: 15,166 mi/ha

MODERATE SCENARIO 2024/25: 41,198 mi/ha MODERATE SCENARIO 2024/25: 15,608 mi/ha

SANTA CARTARINA

OPTIMISTIC SCENARIO 2024/25: 52,718 mi/ha OPTIMISTIC SCENARIO 2024/25: 21,400 mi/ha MAPITOBA PLANTATION AREA

Ma Pi

MAPITOBA To • 10.9% of all national production of Ba Soyabeans

• Production growth between 2013/2014 : Over 16% OVERVIEW OF BRAZILIAN GRAINS PRODUCTION

FORECASTS FOR THE NEXT 10 YEARS MAIZE 2010/11 2011/12 2012/13 2013/14 CARGO OFFER 63,760 79,717 87,931 89,111 Production 26.3% DOMESTIC CONSUPTION 48,485 51,889 53,498 53,906 Consumption 18.5% EXPORTED QUANTITY 9,312 22,314 26,174 20,914 Export 51.2% BALANCE 5,963 5,514 8,258 14,292 SOYABEANS 2010/11 2011/12 2012/13 2013/14 CARGO OFFER 77,973 69,666 82,226 87,661 Production 33.9% DOMESTIC CONSUPTION 41,970 36,754 38,524 39,936 Consumption 22.9% EXPORTED QUANTITY 32,986 32,468 42,792 45,691 Export 42.1% BALANCE 3,017 444 910 2,034 SBM 2010/11 2011/12 2012/13 2013/14 CARGO OFFER 31,372 29,290 29,216 32,571 Production 26.2% DOMESTIC CONSUPTION 13,758 14,051 14,500 14,800 Consumption 34.6% EXPORTED QUANTITY 14,655 14,289 13,716 14,800 Export 17.4% BALANCE 3,259 950 1,000 2,971

OVER 34 MILLION TONS OF EXPORT INCREASE FOR THE NEXT 10 YEARS INLAND LOGISTICS

WHAT’S THE PROBLEM ?? INLAND LOGISTICS INFRASTRUCTURE x PRODUCTION

RANKING INFRASTRUCTURE PRODUCTION CARGO EXPORTED 1ST SOUTH SOUTH CENTER - WEST 2ND CENTER - WEST CENTER - WEST MAPITOBA 3RD MAPITOBA MAPITOBA SOUTH INFRASTRUCTURE x PRODUCTION AVERAGE TRANSPORTATION USAGE FOR GRAIN EXPORT

BRA ARG USA

BRAZIL ARGENTINA UNITED STATES

65% 84% 20%

26% 13% 31%

9% 3% 49%

AVG DISTANCE 1,000 300 1,000 FROM PORT (KM) NECESSARY INVESTMENTS FOR THE LOGISTICS INFRASTRUCTURE IN BRAZIL

BRL 608 BILLION BRL 293.88 BILLION

BRL 193.03 BILLION

BRL 61.02 BILLION

BRL 60.07 BILLION WHAT’S THENEW INFRASTRUCTURESOLUTION ?? PROJECTS, COMBINING LOGISTICS TRANSPORTATION COST FOR SBS EXPORT

BRL 248.69 P/ TON

BRL 258.72 P/ TON

BRL 216.63 P/ TON

BRL 227.80 P/ TON

ROUTE NOT CURRENTLY IN USE BRL 167.49 P/ TON

BRL 133.36 P/ TON INVESTMENTS AT MIRITITUBA REGION

• Each terminal will have from 10 to 11 hectares

• Investment of R$ 100 Millions up to R$ 200 Millions for construction of each Transshipment station

• Investment of R$ 80 Millions up to R$ 100 Millions on 20 Barges and tug boats BUNGE TRANSSHIPMENT IN MIRITITUBA ACTUAL LOADING FIGURES FOR GRAINS

VOLUME LOADED TILL PORT BERTHS STORAGE CAPACITY LOADING TON/DAY AUGUST ITACOATIARA 1 310,000.000 17,500.000 2,322,664.000 SANTAREM 1 60,000.000 26,400.000 1,736,993.000 PONTA DA MONTANHA 1 140,000.000 36,000.000 521,049.692 TERFRON 1 30,000.000 36,000.000 1,583,273.197 ITAQUI 2 678,000.000 50,000.000 4,410,632.738 ILHÉUS 1 32,000.000 6,500.000 30,000.000 TMIB 1 30,000.000 12,000.000 84,000.000 COTEGIPE 1 396,000.000 18,000.000 2,621,038.590 TUBARÃO 1 435,000.000 32,500.000 4,381,567.431 SANTOS 9 1,287,500.000 249,000.000 20,793,107.872 PARANAGUÁ 4 1,272,000.000 266,000.000 12,511,172.760 IMBITUBA 2 100,000.000 16,000.000 336,547.596 SFS 1 450,000.000 40,000.000 4,894,644.418 RIO GRANDE 4 1,673,000.000 122,000.000 10,769,399.082 TOTAL 30 6,893,500.000 927,900.000 66,996,090.376

5 MORE BERTHS ARE EXPECTED TO BE READY IN THE NEXT 5 YEARS, ACHIEVING A DAILY LOADING CAPACITY OF MORE THAN:

1 MILLION MT OF SOYABEANS PER DAY OPERATIONAL GRAIN LOADING PORTS ARE THE NORTHERN PORTS A REAL THREAT TO THE EXISTING STRUCTURE AND PORTS IN THE SOUTH ??

NO. EVERYBODY CAN PLAY and WIN! NEW PORT CONCESSIONS