Jalles Machado (JALL3) Investor presentation summary

Market overview

• Global sugar demand is rising, with a CAGR of 1.2% from 2010 to 2034, and Brazil maintains the lowest production cost worldwide.

• Flex-fuel vehicle fleet in Brazil is expanding rapidly, supporting ethanol as a key fuel for the future and reducing greenhouse gas emissions compared to gasoline.

• Significant potential for bioplastics, green hydrogen, and sustainable aviation fuel, with ethanol expected to play a growing role in global energy transition.

Company overview

• Operates three units with a total sugarcane processing capacity of 9 million tons per year and over 120,000 hectares under management.

• Focuses on high value-added products, 100% own cane, and fully mechanized operations, with strong ESG alignment and certified plants.

• Holds a diversified product portfolio including organic sugar, ethanol, electricity, yeast, and sanitizers, with a leading position in organic sugar exports.

• Implements advanced agricultural practices such as Agriculture 4.0, regenerative organic farming, and circular economy initiatives.

• Expansion plans include increasing milling capacity, biogas, biometano, and new product lines like corn ethanol and biochar.

Operational highlights

• Milling volume is projected to decrease by 10.1% in 2024/25, while harvested area grows by 3.4%; productivity (TCH) is expected to drop by 11.8%.

• Sales volumes for sugar, ethanol, and sanitizers are forecasted to decline in the next two years.