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MESSAGE OF THE CEO

The year 2016 marks the beginning of a new era for Beraca. For the first time in our history we have established a strategic partnership and this successful collaboration with Clariant has brought about many transformations. From the new offices to the definitions made for our five-year plan, everything has been a source of new knowledge. Thanks to the energy stemming from the process of converging beliefs, values, and business models - essential for the success of a joint venture - we have been able to reinforce what makes us unique while making room for the new and the novel. In other words, the original purpose that gave rise to Beraca has remained unaltered while we have managed to synchronize it with the best practices in the global market in areas such as Research & Development.

Identifying weaknesses and making the necessary reflection to address them is the first and perhaps the bravest step for those who want to go beyond their limits. After three years, I can now say that we have completed this home assignment. We broke numerous paradigms while we were casting our positioning, ensuring sustainability in all and every stage of the natural ingredients production chain. We have held extensive discussions with our new partner with the objective of building together a vision of the future that would value our past.

Now that we are in the middle of the first planning cycle, we can contemplate the first fruits that our partnership has produced. Decisions taken in 2016, 2017 and 2018 - the period covered by this report - allowed us to maintain a noteworthy growth curve and, simultaneously, improve the Socio-Biodiversity Enhancement Program®. This unique program governs all our undertakings with agricultural and extractive communities. Moreover, we have provided a boost to our ability to innovate and co-create solutions in conjunction with our clients.

Writing the next pages of our company’s history will require a lot of energy and ability to face up to various challenges. We have a very aggressive expansion objective both nationally and internationally and we will only achieve it if we carry on with the renewal of our mindset and our practices. Furthermore, we have to find new sources of revenue that are compatible with our corporate DNA and correspond to contemporary global trends.

To conclude, I would like to stress that this report is a snapshot of one of the most important moments in maturity of our business, a conquest which has been made possible only thanks to the people who believe in our way of doing things – in the way of being Beraca. This is exactly why I would like to express my sincere gratitude to everyone who has been part of this exciting journey.

Daniel Sabará | CEO of Beraca and member of the Board of Instituto Beraca

MESSAGE OF THE CFO

In a scenario marked by accelerated pace of change and increasing complexity, the challenges of running a business rise and consequently, the satisfaction obtained from achieving good results becomes exponential. The success of Beraca is in the art of managing complexity and transformations in an entrepreneurial way while staying faithful to the principles that our company was founded around: always striving for sustainability and innovation and at the same time maintaining high standards of quality in our products and processes.

The result of our efforts is not only reflected in excellent relations with all the people that we as a company interact with, such as the communities, employees, customers and suppliers. It is also reflected in the high growth rate of our sales. After all, we are talking about a 40% growth between 2016 and 2018 and if want a CAGR (Compound Annual Growth Rate) figure we reach a solid 18% for the same period while also attaining a significant increase in our profitability.

We expect this accelerated growth to continue in the coming years through sustained investments that are diversifying our portfolio of natural products as well as intensifying our partnership with Clariant.

We systematically reinforce our commitment to sustainable development, increasing for example investments in the Sociobiodiversity Enhancement Program® by 40%. Moreover, in order to remain at the forefront of the creation and maintenance of sustainable production chains, we have provided an additional boost to the activities carried out by the Beraca Institute.

I carry with me the motto “Proud of being Beraca”. Being part of this hardworking and committed team fills me with joy. I have no doubt that the challenges we face will be much smaller than the passion that inspires us and motivates us every day. I am grateful to all those who believe in the value of our mission and I am pleased to be able to invite you to read this sustainability report.

Enjoy the reading!

Raphael Lopes | CFO of Beraca