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Investor Presentaiton

OTHER HIGHLIGHTS 70% Gross Margin 60% 50% 40% 30% 20% 10% 36% 59% 48% 62% 山 0% Q4 2019 Q4 2020 FY 2019 FY 2020 Average GM since production started: 53% The key reason for the GM improvement in 2020 was the reduction of production costs per tonne. The reduction of 46% in Q4 2020 compared to Q4 2019 was due to cost efficiency enhancement of 17% and as a result of devaluation of the Brazilian Real by 29% against the Canadian Dollar. For FY 2020, production costs were reduced by 45% compared to FY 2019, again due to cost efficiency improvements and the devaluation of the Brazilian Real against the Canadian Dollar. The increase in CIF (Cost Insurance and Freight) share of total sales in FY 2020 versus FY 2019 compared to FOB (Free on Board) had a positive impact of 2% in GM. VERDE AGRITECH
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