Recife, june 9, 2021

1 INTRODUCTION

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AGF - INDUSTRIA PRODUTORA DE AÇUCAR, ETANOL E ENERGIA ELETRICA LTDA, registered

with CNPJ / MF under nº 07.667.367 / 0001-02, business address at Avenida Ulysses
Montarroyos, nº 2110, Prazeres, in Cidade de Jaboatão dos Guararapes, State of Pernambuco,
CEP 55.550-000. The company is a business organization founded in 2005, having as majority
shareholder and director of the same or Mr. ALFREDO JOSÉ GONÇALO FILHO

2 - GROUP CHARACTERIZATION

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AGF Group is a controlling company of the plants: CIA AGROINDUSTRIAL TERRA DOS
PALMARES LTDA, headquartered in Rua Bom Destino, S / N, Bairro São José, in the City of
Palmares, State of Pernambuco, CEP 55.540-000; by the CIA. ACUCAREIRA SANTO ANDRÉ DO
RIO UNA, located in Vila Saué, district of the Municipality of Tamandaré, State of Pernambuco;
by the CIA. AGROINDUSTRIAL SERRANA - AGRISA, located at Fazenda Itamarati, in the city of
Joaquim Gomes, State of Alagoas, CEP 57.980-000; by the CIA. AGF - LTDA, CNPJ / MF nº or
07.667.367 / 0001-02 Cidade da Água Preta, State of Pernambuco ,, CEP 55.550-000; by the
CIA. ENERGETIC VALE DO SÃO SIMÃO, located in Santa Vitória, State of Minas Gerais, CEP
38.325-000;

It is intended for the exploration of industry and commercial activities in the sugar and alcohol
segment, such as: ethanol, crystal sugar, VHP sugar, Icumsa sugar, molasses, bagasse,
briquettes and other products from more sugar products and other gas energy products,
being, still, a single exporting company of the products and by-products obtained by the same.
In 2019 or the Group's export volume was 1,000,000 tons of sugar. The volume of domestic
domestic sales in the same year totaled 200,000 tons. A total planted area was 180,000 ha,
with 17,000,000 tons of sugarcane harvested. The Group has a total of 22,000 direct workers,
with 2,000 employees in the administrative area and 20,000 workers in the production area.

2.1 - Terra dos Palmares Agroindustrial Plant - PALMARES The factory unit called "Usina
Agroindustrial Terra dos Palmares", located in the City of Palmares, is a modern industrial park
dedicated exclusively to the production of sugar: "Cristal, VHP and Icumsa", in addition to its
by-products, with a production capacity of one hundred thousand tons of sugar per year
today.

2.2 - Cia. Açucareira Santo André do Rio Uma - SANTANDER The manufacturing unit called
Santo André do Rio Una is a modern mixed industrial park, responsible for the manufacture
of sugar: Cristal, VHP and Icumsa, as well as responsible for the manufacture of ethanol,
molasses, briquettes and bagasse.
Currently, the annual production of this factory unit is around one hundred thousand tons of
sugar. The Santo André, Roncadorzinho, Canto Alegre, Duas Bocas and José da Costa mills are
located in this unit.

2.3 - Cia. Agroindustrial Serrana - AGRISA This manufacturing unit called Cia. Agroindustrial
Serrana - AGRISA is the most modern mixed industrial park in the segment, being the last
sugar mill implanted in the State of Alagoas. It is responsible for the manufacture of sugar:
crystal, VHP and Icumsa. Currently, this factory produces around fifty thousand tons of sugar.

2.4 Cia. AGF - Largest industrial park in the group, for the manufacture of VHP sugar, alcohol
and power generation. This unit has a production capacity of 1,000,000 tons of sugar per year,
and 350 MI of liters of alcohol, in addition to the by-products generated.

2.5 - Vale do São Simão Plant It is a modern industrial park for the manufacture of VHP sugar,
alcohol and power generation. This unit has a production capacity of 400,000 tons of sugar
per year, in addition to by-products.

3 - AREA OF INFLUENCE AND GEOGRAPHICAL LOCATION OF ASSETS

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AGF Group stands out for the ease of its locations in relation to the access roads that provide
road support to several municipalities in the State of Pernambuco, Alagoas, Mato Grosso do
Sul, Minas Gerais and São Paulo as well as several neighboring municipalities. At the same
time, the plants maintain a strategic location in terms of the largest distribution and
consumption centers for their products, which are: Recife, Caruaru, Porto de Suape, Maceió,
Espírito Santo, São Paulo and Rio de Janeiro. Below is the location of the plants and the port
options for the production flow:
4 - ECONOMIC JUSTIFICATION

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The beginning of sugar and alcohol activities in the Northeast and Southeast regions dates
from several decades ago, when the industrial units started producing sugar. From a short
time ago, the expansive growth started to produce hydrated alcohol, fuel for automobiles and
later, seeking to improve the efficiency of the company acting on the existing equipment /
processes in need of new and large investments. Going through this phase, AGF Group will
seek to diversify production, through the plant for anhydrous alcohol, into a product to be
incorporated into gasoline as an additive. It will also invest in expanding its sugar production
capacity and in the production of renewable energies through biomass and photovoltaics, in
addition to other sources. The company is currently making investments to expand the
improvement and increase its production to serve the foreign and domestic markets.

The possibility of new investments will provide substantial improvements for the population
of the municipalities located in its surroundings, whose municipalities were previously
specified. The financial investments that will be invested in the manufacturing units will bring
countless satisfactions to the population, by the generation of new jobs and, consequently,
they will be generating products that bring direct benefits to the national economy. In the
agricultural area, the units will present the main innovations:

a) the most recent varieties of cane that better resist pests and diseases, contributing to the
decrease in the use of agricultural inputs and pesticides;

b) equipment more adapted for soil conservation, planting, cultural treatments and harvests,
both in terms of productivity and the elimination of human physical effort;

c) annual investment in training and improvement of the agricultural workforce, contributing

to overcome the low qualification rates of this workforce;

d) personal protective equipment more adapted to working conditions and the climate;

e) more knowledge accumulated in the balance of the use of organic residues and effluents in
the composition of the crop fertilizers, greatly reducing the risk of contamination of the soil
and surface and underground waters; and

f) the introduction of mechanical harvesting, with more adapted and efficient equipment,
eliminating the use of burning straw and the painful work of cutting, providing an increase in
the amount of dry matter (straw) that will be burned in the boilers.

In the industrial area we can present:

a) lower water consumption;

b) greater energy efficiency of equipment such as: mills, boilers, cookers, distilleries and steam
generators;

c) greater availability of qualified labor; and

d) greater efficacy and efficiency of equipment for the control and treatment of emissions and
effluents. It should also be noted that AGF Group will use regional labor, employing thousands
of people, with the most diverse backgrounds, to meet their needs regarding the production
of raw materials and final products.

The Financial Statements from 2017 to 2020 have already been delivered as an Attachment
to the Iraq Sugar Group and can be attached to this document.

5 - SOCIAL JUSTIFICATION

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The company understands that growth and improved profitability must be accompanied by
its social role, and thus plans for economic growth linked to improvements in the quality of
life of its employees and dependents. In this way, it will seek every day to expand and perfect
existing actions, as well as embrace new projects.
6 - ENVIRONMENTAL JUSTIFICATION - SUSTAINABLE DEVELOPMENT

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The company's management is aware of its mission, as well as its business vision: to increase
production from sources of sustainable and quality raw materials, with profitability and
flexibility of the product mix. The company is convinced that environmental preservation,
together with economic efficiency, results in the sustainability of the enterprise and the
community in which it operates. The use of natural resources in production must be carried
out in such a way that this heritage is protected and preserved. The desired sustained
development implies constant observation and strict control, involving various monitoring
programs, proper disposal of waste and others. The company seeks to prove that sustainable
growth is possible by protecting the environment, with creativity and with projects that
transform environmental risks into business opportunities.

7 - CURRENT SCENARIO OF CANEVIAN AGROINDUSTRY

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After almost two decades of crisis, the number of mills in the country that failed to fulfill their
commitments to their creditors grew and, as a result, increased the list of companies that
sought judicial protection or those that had their bankruptcy declared. However, analysts
believe that the peak of the crisis has already been overcome and that after this most critical
period of the crisis in the sugar and alcohol sector, national and foreign investors are
beginning to turn to the plants that have gone into judicial recovery.

Currently, sugar and ethanol producers in Brazil have reduced their debts to the lowest level
in five years, because of deep cost cuts and almost zero investment in sugarcane processing
capacity.

Below is a graph of FIESP (Federation of Industries of the State of São Paulo), 2019, considering
the forecast of growth in production of the sugar industry for the next 10 years. In Portuguese,
the graph represents the productivity (ton/ha) :
A table by the Ministry of Agriculture - MAPA of 2019 also follows, considering the forecast
for export and internal consumption of the sugar industry production for the next 10 years at
1,000 x tons. The schedule is divided in Productions (Column 1), Consumption (Column 2) and
Exportations (Column 3). The subcolumns are the projection and the maximum superior
limits:

The improvement, however, was much more used by some groups, notably those who are in
a controlled financial situation.

In order to minimize these problems, AGF Group will have outsourced companies for services
such as: civil works, assembly of mechanical, electronic and instrument equipment,
calibrations, tests, safety and start-up, benefiting the region.

The whole context presented is that the main structuring axis of these industrial units must
be constituted in the execution of a sustainable development model, guided by the
socioeconomic improvements of the population of the municipalities involved in the areas of
influence of the enterprise.

The AGF Group has the understanding that growth and improvement in profitability must be
accompanied by its social role and, therefore, plans economic growth linked to improvements
in the quality of life of its employees and dependents. In this way, AGF Group will seek to
expand and improve existing actions every day, as well as embrace new projects.
8 - OUTLOOK FOR INCREASING PRODUCTION

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The units presented here are mainly responsible for the production of AGF Group to supply
the national and international markets in the sugar and alcohol segment. The Copmany has
as main goal the acquisition of more sugar mills, aiming to increase its sugar production to
four million tons in four years.

9 CONCLUSIONS

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Analyzing the entire context presented, it turns out that the major structuring axis of these
industrial units should be based on the execution of a sustainable development model, aimed
at improving the production and delivery capacity of products to its customers and partners.
Never forgetting it’s social nature with the population of the municipalities involved by the
areas of influence of the enterprises, through the economic, social and environmental
development.

The AGF Group has the understanding that growth and improvement in profitability must be
accompanied by its social role and, therefore, plans economic growth linked to improvements
in the quality of life of its employees and dependents, seeking, in this way, to expand and
perfect existing actions, as well as embracing new projects. In this way, through the foregoing
and knowing that the requested information will contribute to the requested objectives,
without further ado for the moment, we renew our votes of esteem, consideration and
appreciation.