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TogetherWe accomplishMore.

2 0 1 8 S U S T A I N A B I L I T Y R E P O R T

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Summary

Sumário

1TOGETHER

WE ARE CARAMURU

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3TOGETHER

WE ARE ATTITUDE

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4TOGETHER

WE ARE PEOPLE

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5TOGETHER

WE ARE RESULTS

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2TOGETHER

WE ARE EFFICIENCY

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6TOGETHER

WE ARE TOMORROW

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1Together We Are Caramuru

The year 2018 is yet another chapter of achievement and learning from a journey of over half a century of history.

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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 Brazil 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

Achievements that project us into the future

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Máquina Caramuru was founded by Múcio de Souza Rezende, in Maringá - PR, in the field of corn industrialization.

Implantation of the soybean oil refinery in Itumbiara - GO.

Biodiesel production unit, in São Simão - GO.

Beginning of the opening of storage units in Mato Grosso.

Rental of an industrial soybean extraction unit and installation of a lecithin production unit in Sorriso - MT.

Transshipment branches of Anhembi and Pederneiras - SP.

Caramuru completes 50 years.

Soybean Lecithin Unit, in São Simão. Opening of Terminal XXXIX, in Porto de Santos - SP.

Electric power cogeneration, in Sorriso - MT.

Inauguration of the corn processing plant, subsidiary of Apucarana - PR.

Unit of extraction and refining of special oils, in Itumbiara - GO.

Soybean processing plant in Ipameri - GO.

Opening of the grain storage unit in Ipameri - GO.

Biodiesel Plant, in Sorriso - MT; North Exit - Waterway Transhipment, in Itaituba - PA; Port Terminal in Santana - AP.

1st loading in the Port of Santana - AP.

Inauguration of the São Simão - GO soybean processing plant and the waterway terminal.

Biodiesel production unit in Ipameri - GO.

PET filling unit, in Itumbiara - GO.

Installation of the Industrial Unit of Soy Protein Concentrate - SPC.

Opening of the corn processing plant, subsidiary of Itumbiara - GO.

Opening, in Apucarana, of the factory of crude oil, corn germ and pelletized bran.

Launching of the Sinhá brand.

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Opening of oil and soybean meal, pre-cooked corn factories. Beginning of the opening of the storageunits of Goiás, in several cities.

Transfer of the parent compnay from Apucarana - PR to Itumbiara - GO.

A journey of innovation, economic and social development that makes the difference.

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Values that make the differenceIn each one of its activities, Caramuru’s collaborators carry in mind and heart solid values that transmit professionalism, ethics and commitment to customers, suppliers, partners and the whole society.

2018 VisionBe a Business Group recognized for:• Serve customers and consumers with

quality products and services;• 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;

• Act nationally and internationally;•Use management and production processes

with updated technology;• Maintain a consistent history of profitability

and growth; and • Act based on principles of environmental

and social sustainability.

MissionProvide food, inputs, biofuels and services with quality, meeting the needs of customers and consumers, generating values to society, suppliers, employees and shareholders.

Values• Ethics• Trust and mutual respect• Simplicity and transparency in the

relationship• Appreciation and development of

employees• Discipline and professionalism• Boldness and creativity• Perseverance• Respect for the environment

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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.

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Corporate Governance

EXECUTIVE BOARD

COMMERCIAL

CONTROLLERSHIP

INDUSTRIAL AREA

FOMENTATION

HR AND INSTITUTIONAL

RELATIONS

IT AND PROCUREMENT

CORN

NEW BUSINESSES

INTERNATIONAL COMMODITIES

ORIGINATION AND GENERAL WAREHOUSES

LOGISTICS/PORT

SOYBEAN

FINANCIAL AND ADMINISTRATIVE

The management of Caramuru operates in an integrated manner following the best practices of 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.

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CertificationsFrom manufacturing to storage, from production to packaging, from transportation to port operations, every activity carried out by Grupo Caramuru and its partners follows the highest levels of quality and safety. Our activities meet the requirements of national and international clients, and are inspected periodically by independent audits. Besides that, all of our NGMO products, such as SPC, lecithin and soybean meal comply with Kosher certification, which respects the Jewish law, and Halal certification, which follows the Muslim food legislation.

Apucarana Unit - PR

Ipameri unit - GO

Food safety HACCP

Food safetyHACCP

Manufacture of corn flour, grits, corn kernels, fine corn hominy, cornmeal, cream and flakes.

Production of flaked soybean meal, ground soybean meal, Hi-Fiber soybean husk meal and Hipro soybean meal.

Manufacture of corn flour, grits, corn kernels, fine corn hominy, cornmeal, cream and flakes.

Production of raw materials for animal feeding.

Quality Management SystemISO 9001:2015

Food Safety System for Animals

GMP+B2 (2010)

Itumbiara unit - GO (soy)

Environmental Management System

ISO 14001:2015

Quality Management System

ISO 9001:2015

Health and Safety Management SystemOHSAS 18001:2007

Research and development, production of soybean and sunflower meals, crude soybean and sunflower oils; degummed soybean oil; refining of soybean, corn and sunflower oils; filling of soybean, corn, sunflower and canola oils compounded and flavored in the industrial plant of vegetable oils.

Commercialization and ExportationGMP+B3 (2007)

Food system for Animals

GMP+B2 (2010)

Trade and production of raw materials for animal feeding.

Production of soybean meal, degummed oil, crude oil and refined soybean oil; production of bran, crude oil and refined sunflower oil; raw oil and refined corn oil; refined canola oil; aromatized and non-aromatized composite oils.

Food safetyHACCP

ProTerraGrupo Caramuru has always sought to innovate and stand out as a pioneer in the Brazilian market. The company was the first to adopt the ProTerra seal in 2006, reinforcing its commitment to society and the preservation of the environment. To learn more about this certification, check out the details in Chapter 3 of this report.

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Quality Management SystemISO 9001:2015

Products of bagged corn (raffia or big bag sack) produced in the beneficiated corn line, milling and granulating from the receipt of the corn to the final product shipment.

Production of soybean meal, degummed soybean oil and soy lecithin.

Production of raw materials for animal feeding.

Production of crude oil, soybean meal, soy lecithin and soy protein concentrated.

Production of crude oil, soybean meal and soy protein concentrate (SPC) and soy lecithin.

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

Environmental Management SystemISO 14001:2015

Food SafetyHACCP

Provision of port operation services: reception, storage and dispatch of products of plant origin in bulk.

Quality Management System

ISO 9001:2015

Quality Management System

ISO 9001:2015

Food Safety System for Animals

GMP+B2 (2010)

Health and Safety Management SystemOHSAS 18001:2007

Marketing and ExportationGMP+B3 (2007)

Storage and transhipment of raw materials for animal feeding.

Production of Hipro soybean bran, degummed soybean and lecithin oil.

Food SafetyHACCP

Food DefenseIFS

Port Operation: reception, storage, shipment of soybeans in grains, Hipro soybean meal and pelletized citrus pulp meal and soy protein concentrate, with identification of food safety hazards.

Production of soy lecithin.

Itumbiara Unit - GO (corn)

Sorriso Unit - MT

Food Safety HACCP

Food SafetyHACCP

Food Safety System for Animals

GMP+B2

Production of raw materials for animal feeding.

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2Together 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.

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OriginationFrom receiving to processing of the raw materialWith the harvest from February to April 2018, Grupo Caramuru reached the targets set for that year. The positive result allowed the full utilization of the 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.

Volume of raw materials received in 2018:

more than 2,400,000 tons of soy, corn and

sunflower.

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With favorable weather, 2018 was a good year for soybean production. According to data from Companhia Nacional de Abastecimento (CONAB), about 119 million tons of grain were produced in Brazil. With efficiency and dedication, Caramuru was able to act in the purchase of grains and in 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, Industrial and Port areas, provided Grupo with greater competitiveness.

Inspired by our boldness, creativity, transparency in the relationship with partners and respect for the environment, we will continue to invest in the domestic and foreign markets in 2019, reaffirming our participation in the soybean and its derivatives production chain.

SoybeanActive participation in internal and external markets

Transparency in the relationship,

daring, creativity and innovation are some

of the values that drive our participation

in the national and international markets.

Teamwork and integration among the areas of

Origination, Logistics, Commercial, Industrial

and Porto provided more competitiveness to Grupo

Caramuru.

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The Board of Promotion was created to work on research and innovation in the segment of NGMO soybeans, seeking greater productivity and quality, fundamental for the acceptance of the producer. To develop the study of the seeds, Caramuru established partnerships with recognized institutions, such as the Universidade Federal de Viçosa (UFV), the Universidade Federal de Uberlândia (UFU) and the Empresa Brasileira de Pesquisa Agropecuária (Embrapa).

Throughout the year, the partnership with UFV resulted in the planting 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 Group’s work in conjunction with Embrapa. The novelty was presented to rural producers in five events held by Caramuru and known as Field Days.

PromotionA new focus on NGMO soy

In addition, the Board of Promotion develops the Sustain Program (read more about the initiative in Chapter 4 - We are People) and is responsible for the implementation of the Agrotools TerraSafe system, which aims to ensure that all the raw material purchased by Caramuru comes from leglized areas.

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 producers in the TerraSafe program also began.

By 2019, the goal is to market 6,000 tons of NGMO soybeans, a 40% increase over 2018, with the launch of five new seed

varieties. This goal also aims to increase the origination and processing of non-transgenic soy by Caramuru.

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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.

CornA challenging year

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SunflowerPositive results that stimulatenew investmentsEach 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.

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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.

CommoditiesDifferentiated products that add value to customers

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IndustrialA year of changes and breakdown of paradigmsMany 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.

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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.

New businessesInvestments to grow sustainably

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LogisticsIntermodality of transportsensures more efficiencyIn 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.

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General WarehousePromoting the integration of the Caramuru production chainIn 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.

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CommercialConsolidated relationships and good resultsThe 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 Minas Gerais, 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.

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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.

A specific area for animal consumption

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.

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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.

Human Resources and Institutional RelationsTraining to develop and professionalize

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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 management of results by segment.

Information TechnologyPromoting the integration of systems and employees

In 2018, Caramuru continued to invest in new technologies,

management tools and integrated platforms to make its internal processes more

effective.

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The year 2018 brought very satisfactory results to Caramuru, which focused on higher value-added products, reducing those with lower margins. In addition, the Group has exceeded positive results achieved in previous years.

In terms of Administration and Finance, the year also had challenges with the credit market going through a period of great demands. For 2019, although the credit market remains cautious, it is expected to surpass the great results achieved in 2018.

FInancial and AdministrativeA year of two important milestones

ControllershipAccurate accounting and fiscal planningIn 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 Group adopted the automation of processes for the calculation of ICMS and tax incentives, in addition to promoting trainings, process improvements and procedural updates. Throughout the 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.

Caramuru also consolidated its management tools, enabling the computerization of almost 100% of the service and filing of documents. With the qualification of teams and the structuring of the support areas, the results and goals were gradually achieved with efficiency and quality.

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.

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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.

GT-2018Positive results confirm Grupo’s efficiency

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3Together 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.

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The technology of the ETEs allowed Grupo Caramuru to reuse the treated water from the stations in plants, gardening, cooling towers and cleaning.

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.

Effluent Treatment StationsTechnology to preserve an expensive resource for all

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NGMOProducts that conquer national and international markets

Recycling Station Awareness raising and socio-economic development initiativeCaramuru’s initiative to support the Recycling Station project is aligned with the Group’s Private Social Investment Methodology and anchored in the National Solid Waste Policy, developed by the Federal Government. The program, conducted in the city of Itumbiara (GO), seeks to promote environmental awareness raising, social inclusion of collectors and income generation for these families.

Annually, all recyclable material collected in the unit is destined for the station. In this way, the program also contributes to the awareness raising of Grupo Caramuru employees.

Through the Recycle Station, Caramuru helps pickers to regularize their professional activity, organizing themselves in cooperatives or associations.

For the production and processing of non-transgenic (NGMO), Caramuru has three units, located in Sorriso (MT), São Simão and Itumbiara (GO). In order to respond to national and international demand, different areas of Grupo operate in an integrated and innovative way. From seed harvesting to storage, through logistics and transportation, to delivery of the final product in Brazil and worldwide, the company follows strict international quality certificates.

By acting strategically in the export of NGMO’s, Grupo Caramuru opens up business opportunities in niche markets. Its products have already conquered markets in Germany, South Korea, Denmark, the United States, Italy and Turkey, as well as several regions of Brazil.

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Soy Protein ConcentrateMore innovation in human and animal feeding

ProTerraSustainable attitudes with international certification

Grupo Caramuru was one of the pioneers in the food segment to adoptthe ProTerra seal in 2006. The program sets international standards of ethics, social responsibility and sustainability for all stages of agricultural production, transport, storage and processing of commodities.

The seal is administered by the Fundação ProTerra. To maintain it, Caramuru annually undergoes audits in its units, factories and warehouses. The supplier producers are also evaluated. According to the program, certified companies must implement initiatives of preservation of wet forests, riparian forests, wetlands, marshes, steep slopes and indigenous areas.

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.

SPC’s unit industrializes higher value-added soy products, making processing and job creation competitive in Sorriso, Mato Grosso, as well as giving the state its first industry of soy protein concentrate.

SPC is a product with a high protein content, above 60% and environmentally correct. Its main applications are in aquaculture, as a substitute for fishmeal in feed; in pig farming, poultry farming, echinoculture, cattle farming; and in human food.

The SPC is drained by highway to the Caramuru transshipment terminal in Itaituba (PA), from there by waterway, through the Tapajós and Amazonas 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.

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Caramuru constantly invests in renewable and sustainable technologies that add value to the Group, to society and to the environment. In 2018, Caramuru participated actively in the biodiesel auctions. Throughout the year, with two plants in Goiás and one in Mato Grosso, the company continued to produce this biodegradable and ecologically correct energy, which emits less polluting gases in the atmosphere.

Investments in biodiesel have made possible a greater diversification in the markets in which Caramuru is present. Integrated into the National Program for the Production and Use of Biodiesel (PNPB), the company has contributed to the generation of jobs and incorporated into its business thousands of family profile farmers.

Biodiesel More benefits for the environment and society

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.

Sustain ProgramGrowing along with farmersThe year 2018 was one of great achievements for the Sustainability Program for the Farmer of Caramuru. Aimed at the development of the company’s farmers and rural producers, the initiative emerged as a specific demand in 2015, generating the promotion of trainings and sharing of the best management practices. The Group also monitors the raw material suppliers in order to comply with current regulations and legislation.

In its trajectory, the program grew in a sustainable way, evidencingits importance for the Group’s businesses to its customers. By 2018, these courses and workshops brought knowledge and information to 245 farmers. Indirectly, about 1,000 suppliers were positively impacted by the program.

The Sustain Program benefited in 2018, 245 farmers through workshops, meetings, events and trainings. Indirectly, about 1,000 farmers

benefited throughout the year.

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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.

Social Fuel SealA differential achievedAwarded to Caramuru for 12 years by the Special Secretariat of Agriculture and Agrarian Development - SEAD (former Ministry of Agrarian Development - MDA), the Social Fuel Seal is a differential of the Group, which believes in the biodiesel market and continues to invest in the segment at its plants in São Simão and Ipameri, Goiás, and Sorriso, in Mato Grosso.

Integrated with the Federal Government’s National Program for the Production and Use of Biodiesel (PNPB), the Social Fuel Seal gives Caramuru the possibility of participating in biodiesel auctions. Organized by the Agência Nacional do Petróleo (ANP), these auctions aim to offer volumes demanded by the distributors with the best batches and prices. The stamp of the Seal, which adds value to its business, allows Caramuru to come out in front, as their offers are evaluated as a priority.

Family FarmingProgram dedicated to family profile farmersFor over 10 years, Caramuru has provided farmers with a family profile a solid partnership, which aims at the productive inclusion and the aggregation of value of its properties. In 2018, the Group’s agronomist team assisted 1,100 producers directly, bringing to the attention of these partners differentiated information, training courses and new technologies. As a result, they have improved their properties, increased productivity and increased income generation.

Aiming at the improvement of these farmers, in 2018, Caramuru carried out 23 direct technical trainings, attended by more than 2,500 people. The Group’s is also constantly investing in the qualification of its agronomist 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.

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4Together 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.

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Human ResourcesInvesting in who makes Caramuru happenTo help develop and raise awareness among its employees, Caramuru has promoted a series of internal projects and events. On Dia do Trabalhador (Labor Day), one of the most important celebrations for the Group’s, more than 2,500 employees were honored and received a gift from the company.

Children also have their turn in Caramuru, which always promotes a special event to celebrate their day. In 2018, nearly 2,000 toys were delivered to the employees’ children.

The celebration of the end of the year is always important for the company which, every year, performs an ecumenical cult. Last year, about 420 employees attended the celebration in Itumbiara.

Education for allOnce again, the Group delivered school kits to employees in the first quarter of the year. In all, there were 126 kits of Primary and 119 kits of Elementary School, totaling 245 kits.

In addition, Caramuru continued offering scholarships to its professionals. In 2018, there were 16 undergraduate scholarships and 14 scholarships for English courses.

Health in the dayMaintaining the health and quality of life of its employees is fundamental for Caramuru. Therefore, in addition to the annual vaccination campaign and workplace gymnastics, the Group is committed to investing in initiatives that result in team awareness raising.

Enable to progressThe year 2018 was also marked by several trainings. In all, there were 265 trainings, which mobilized the participation of 7,946 people. A highlight for the Coach Leader, held for 60 managers, between managers and directors. In addition to developing participants’ external competencies and internal capabilities, the

training enabled leaders to develop a coaching dialogue, as well as providing an environment for integration and exchange of experiences.

A concept that communicatesOnce again, Caramuru developed a concept to support the planning and communication actions throughout the year. In 2018, the theme chosen was We are one. We are all. Building Our Tomorrow’, which worked on the importance of team collaboration and integration. In addition to being used in the identity of the campaigns, the theme was widely publicized in the Group’s communication vehicles and experienced by all employees.

Last year, the 2018 Vision cycle was also completed. An internal campaign encouraged employees to reflect on the achievements

obtained by Caramuru and to send evidence of compliance with

2018 Vision, towards the 2025 Vision.

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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.

SISMAQ:A more collaborative and custom event

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Safety and healthFull attention to the employeeReduce 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 alcohol use and smoking, and to conduct syphilis and hepatitis B and C examinations with orientation and delivery of condoms.

In April 2018, during the campaign against H1N1 influenza,

1,598 people were immunized, 823 of whom were employees

and 775 dependents.

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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.

The Learning with You Program, which in 2018 celebrated 20 years of existence, is one of the projects that most benefits children and adolescents in the regions where it operates. And to celebrate this milestone, Caramuru reformulated the brand of the Program and developed a seal commemorating the two decades of Learning with You, which is being used by the entire group in social campaigns.

AchievementsAbout 180 students of partner schools Vinícius de Aquino Ramos and Damores do Amaral, 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.

Social projectsOur responsibility to the community

Arraiá of solidarityAs it happens every year, the Program was also present in Arraiá of Itumbiara with the tent Learning with You. The amount collected from the sale of the products during the festival days was reversed between the partner schools.

Dance and artAlso in 2018, children from the Dance project of the Escola Municipal Alexandre Arcipretti participated in the first edition of the Itumbiara School Dance Showcase, held at the Teatro Municipal Maria Pires Perillo. The dance presented was inspired by the literary work ‘Um dia na Aldeia’ by the author Daniel Munduruku.

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EntrepreneurshipFor 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 the Personal Economy, Shadow Entrepreneur, Personal Finance, Skills for Success, Our

World, Small Business, Let’s Talk about Ethics and the Advantages of Staying

in School programs.

A well-wish to ItaitubaSince the beginning of the Saída-Norte project, Caramuru was included in the community of Boa Vista, located in Itaituba (PA). To get closer to the residents of the 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.

Recognition of volunteersCaramuru understands that social projects only work so well because a large network of volunteers works and dedicate themselves daily. And to thank them for their hard work, 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’.

What’s coming up...In 2019, the Learning with You Program should earn one more modality: a choir of students of partner schools. In addition, the Group should invest even more in environmental education by establishing new partnerships that will allow the holding of lectures on the conscious use of water.

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AnimationCaramuru inserted in the communityProvide 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.

açãoanim

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5Together 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.

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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%

% of blacks / browns in managerial positions 24.55% Relationship between highest and lowestremuneration in the company 39.00

1. Employee profile

432.1 - FoodNo. of Meals served annually 849,211 No. of Distributed Staple Baskets 28,990 Food Expenditures BRL 18,412,871

2.2 - Private Pension PlanExtended to all employees Expenditures with Private Pensions BRL 1,482,209

2.3 - HealthHealth 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 - EducationGraduation BRL 81,050 Education Expenditures BRL 81,050

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

2.5 - Training and professional developmentNo. Trainings conducted 265 Expenditure on training and development BRL 1,884,000

2.6 - Profit share or profit participationContemplates all employeesExpenditure with PLR BRL 13,700,000

2.7 - OtherTransportation 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

2 - Internal Social Indicators

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3.1 - Contributions to Society

"Learning with You” Company- School Partnership BRL 181,514

Junior Achievement Program BRL 65,880

Culture (Music, Theater) BRL 145,241

Sport BRL 17,287

Child and Adolescent Rights -

Fighting Hunger and Food Security BRL 113,876

Miscellaneous Donations BRL 629,654

Sub Total BRL 1,153,452

Taxes (excluding social charges) BRL 33,496,679

Total of the external social indicators BRL 34,650,131

Investments related to production /company operation BRL 14,567,535

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, Sunflower Seed, Limestone and EPI’s BRL 581,499

Training carried out with family farmers 32

Annual energy consumption (Kw/h) 110,428,314

Annual water consumption (m3) 3,144,356

Annual consumption of firewood (m3) 33,227

Annual consumption of fossil fuels - Diesel (liters) 552,574

Annual consumption of briquette fuels - (t) 972

Annual consumption of chip fuel - (t) 898,801

Annual consumption of shavings fuels - (t) 9,818

Annual consumption of sugarcane bagasse fuel - (t) 145,163

Annual consumption of fossil fuels - Gas (t) 10,229

Annual amount of solid waste for Landfill - (t) (Common Waste) 79,128

Annual amount of solid waste for Composting - (t) 18,736

Annual amount of solid waste for Recycling - (t) 29,746

Annual amount of solid waste for Incineration - (t) 2,838

Annual Solid Waste Qty for Soil Recovery - (t) 8,563

4 - Environmental Indicators

3 - External social indicators 5 - Use of natural resources

6 - Family farming

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7 - Fertilizer Training and culture in the field

9 - Customer Care service

Total complaints and critiques 275 100% solution

In the company 273 100%

In the Procon - 0%

In Court 2 100%

8 - Caramuru ProgramsCompany-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

NGMO Soybean Field Day 1,031 participants

Sustain Program, Sustainable Soil Management and Fertility, Family Farming Lecture - Process, 3rd Copertã Technical Meeting, 6th Meeting of the Southwest Settlements of Goiás, (TeachnicalTraining - soil management, green manure, nematoid and soybean disease, white fly control)Dissemination of the Platform of the Sustain Program, Increased Productivity x Profitability; PNPBand its new rules

682participants

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11 - Generation and distribution of wealthTotal amount generated and distributed BRL 541,707,297 100.00%

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%

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

10 - Investments

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SAÍDA-NORTEItaituba - PA - Waterway Transhipment StationTwo warehouses with total capacity for 14 thousand tons.Meets the load of the Sorriso plant - MT and production ofsoybean protein concentrate (SPC).

Porto de Santana - AP – Port TerminalThree silos with a total capacity of 21 thousand tons toreceive the product from the transhipment station ofItaituba - Pará bound for Europe.

ANHEMBI – SPWaterway TerminalWarehouse with capacity of 20 thousand tons to handle the load originated from the factory of São Simão - GO.

PEDERNEIRAS – SPWaterway TerminalTwo warehouses with total storage capacity of60 thousand tons to handle the load originated from thefactory of São Simão - GO bound for Porto de Santos.

PORTO DE SANTOS – SPPort Terminal XXXIXWarehouse 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 - ESStorage capacity:60,000t of grains and/or soybean meal

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

Terminal I - Factory and TranshipmentSoybean and soybean meal loadingShipping capacity: 500t/hour

Terminal II - TransshipmentLoading of soy and cornShipping capacity: 500t/hour

Caramuru Terminals

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Warehouse Structures

GOIÁS

Acreúna Lagoa do Bauzinho

Almerindonópolis Mineiros

Bela Vista Montividiu

Buriti Morrinhos

Campo Alegre Orizona

Catalão Pensão Velha

Chapadão do Céu Perolândia

Cocalzinho Piracanjuba

Danisa Pontalina

Edealina Portelândia

Edéia Quirinópolis

Inaciolândia Rio Verde

Ipameri Silvânia

Itagel Vicentinópolis

Jataí

MATO GROSSO

Água Boa

Boa Esperança

Campo Novo

Canarana

Feliz Natal

Ipiranga do Norte

Lucas do Rio Verde

Nova Mutum

Nova Ubiratã

Paranatinga

Querência

Santa Rita do Trivelato

Sinop

Sorriso

PARANÁ

Apucarana

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Industrial Units

ITUMBIARA - GO (Parent Company)

Soy processingCapacity: 1,700t/dayProduction of refined oil: 600t/dayPackaging of flavored oils:3,000 bottles-cans/hourBlow and package PET bottles:36,000 bottles/hour

Production of soybean lecithinCapacity: 500t/month

Processing of special oilscorn - sunflower - canolaCapacity: 500t/day

Corn processingCapacity: 24,000t/monthDegermination: 960t/dayPre-cooked production: 5,000t/monthColor industry: 400t/monthPopcorn production: 1,770t/month

Cogeneration of energyCapacity: 8MW

SÃO SIMÃO - GO

Soy processingCapacity: 1,800t/day

Production of soybean lecithinCapacity: 500t/month

Production of biodieselCapacity: 225 million liters/yearGlycerin: 14,000t/yr

Energy GenerationCapacity: 2.1 MW

IPAMERI - GO

Soy processingCapacity: 1,500t/day

Production of biodieselCapacity: 225 million liters/yearGlycerin: 20,000t/yr

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Industrial Units

SORRISO - MT

Soy processingCapacity: 1,200t/daySoybean oil: 234t/dayHipro Bran: 850t/dayMolasses: 212t/day

Production of Soybean LecithinCapacity: 360t/month

Soy ProteinConcentrate ProcessingCapacity: 600t/day

Cogeneration of energyCapacity: 8MW

Production of biodieselCapacity: 94 million liters/year

APUCARANA - PR

Corn processingCapacity: 15,000t/monthDegermination: 600t/dayPre-cooked production: 1,500t/month

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6Together We Are Tomorrow

Work, dedication and commitment. This is how Caramuru builds its history. And that is what the Group wants for its future.

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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.

Our way of building tomorrow

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