Country Focus: Brazil

Al Khaleej Sugar Co. L.L.C.

 World’s largest standalone sugar refinery  Pioneer in standalone destination refinery concept  Installed production capacity of 6000 metric tons white sugar per day  Worlds largest single storage capacity for raw sugar  800 employees  13 nationalities  Aggressive growth vision to be world’s best energy efficient sugar refinery

Al Khaleej Sugar Refinery - Concept

 Middle east has been and will remain structurally deficit sugar consumption region due to Unsuitability for sugarcane/beet production High Per capita consumption of 34 kg per annum Higher population growth rate leading to sugar consumption growth  Advantage of bulk freight for imports  Advantage of zero freight for container exports from UAE

Zeroing at Brazil for raw sugar supplies

Why Brazil?  World’s largest sugar producer  Continuous exportable surplus availability  World’s lowest cost sugar producer historically  Expansion potential due to availability of suitable land and sugarcane production resources  Best quality of raw sugar

Al Khaleej Sugar & Brazil  Importing raw sugar from Brazil since 1995  Al Khaleej Sugar imports from Brazil in last 10 years as per above  Was partner with sugarcane growers cooperative of Brazil (Copersucar) to enhance sugar producing cane varieties  Largest single destination buyer of raw sugar

Key Challenges ahead  Port congestion and logistical/road movement constraints from mills to port during the peak sugar movements  Brazil’s position as a predominant supplier of sugar to the world adds to price volatility for world market  Switch between ethanol and sugar production due to prevailing market creates uncertainty  Draft at Santos/Parangua (key sugar export port ) needs to be increased for accommodating Panamax size vessels

Message Al Khaleej Sugar’s one and a half decade business experience with Brazil has been productive and positive and we look forward to continued growth in our business with Brazil

Thank You