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Investor Presentaiton

116 FINANCIAL CAPITAL ECONOMIC AND FINANCIAL PERFORMANCE GRI 103-2, 103-3 | 201 2021 INTEGRATED ANNUAL REPORT COSTS In 2021, the cost of goods sold showed 14.9% growth versus 2020, representing 77.4% of net revenue for the period (72.6% in 2020). The 4.8 p.p. increase in COGS representation on net revenue in 2021 versus 2020 was a result of the following factors: 31.5% increase in the average cost (R$) of wheat consumed; ↑61.4% increase in the average cost (R$) of oil consumed; ↑35.0% increase in the average cost (R$) of sugar consumed; ↑ Lower dilution of fixed costs due to the 14.4% decrease in volumes produced; 10.1% Inflation in 2021 (4.5% in 2020)¹; Cost of goods sold (R$ million) Improved mix of volumes sold, especially cookies and crackers. As for the impact of wheat and palm oil prices, the evolution of acquisition prices in M. Dias Branco's inventories and market prices for the periods from 2020 to 2021 is evident in the graphs on the next page. Average acquisition price in M. Dias Branco Inventory x market prices Wheat (US$/t) 298 292 285 280 285 266 270 271 270 271 247 245 254 253 222 225 236 225 225 225 226 230 264 267 272 273 275 276 217 215 257 259 249 241 232 236 214 218 218 217 221 226 216 195 194 195 206 199 Jan 2020 Mar 2020 May 2020 Jul 2020 Sep 2020 Nov 2020 Jan 2021 Mar 2021 May 2021 Jul 2021 Sep 2021 Nov 2021 Dec 2021 Palm Oil (US$/t) Natal/RN ¹Historical series is available at: ibge.gov. br/estatisticas/economicas/precos-e-cus- tos/9256-indice-nacional-de-pre- cos-ao-consumidor-amplo 1,451 1,476 1,383 1,206 1,227 1,242 1,140 1,161 1,155 1,149 1,129 1,110 1,216 1,152 1,131 1,121 967 996 1,032 1,069 919 1,119 1,031 767 800 773 788 809 726 757 781 964 984 995 694 846 822 739 684 670 691 700 642 627 641 585 583 622 Nov 2020 Jan 2021 Mar 2021 May 2021 Jul 2021 Sep 2021 Nov 2021 Dec 2021 Market Jan 2020 Mar 2020 May 2020 Jul 2020 Sep 2020 *Source: Wheat - SAFRAS & Mercado; Palm oil - Rotterdam. PRODUCTION AND CAPACITY UTILIZATION RATE In 2021, production volume and level of capacity utilization were down 14.4% and 11.9 p.p., respectively. It is worth noting that production was stepped up in 2020 in an effort to meet the growing demand seen in M. Dias Branco the context of the onset of the pandemic. Thus, the drop is impacted by the strong demand, mainly between 2Q20 and 3Q20, which led to the reactivation of production lines and introduction of new shifts, resulting in a larger comparative base. 2021 % NR Raw materials 4,171.5 53.4% Wheat 2,630.7 33.7% 2020 3,532.2 2,371.1 % NR 48.7% 32.7% HA% HA-% NR 18.1% 10.9% 4.7 p.p. 1 p.p. Oil 899.5 11.5% 588.1 8.1% 53.0% 3.4 p.p. Sugar 225.2 2.9% 182.6 2.5% 23.3% 0.4 p.p. Cookies and crackers Pasta Flours and Brans Margarine Other and product shortening lines** Total Flour acquired from third parties 7.5 0.1% 16.3 0.2% -54.0% -0.1 p.p. Effective Shortening acquired from third 1.7 0.0% 2.9 0.0% -41.4% O p.p. Production/ 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 parties Other inputs 406.9 5.2% 371.2 5.1% 9.6% 0.1 p.p. production capacity* Packaging 530.5 6.8% 478.3 6.6% 10.9% 0.2 p.p. Total Production 531.1 598.4 380.0 462.0 1,493.1 1,765.1 176.0 192.1 16.3 17.0 2,596.5 3,034.6 Labor 646.0 8.3% 623.6 8.6% 3.6% -0.3 p.p. Total Production 896.5 896.1 562.7 580.8 2,470.9 2,319.6 360.0 385.7 36.3 38.7 4,326.4 4,220.9 General manufacturing costs 514.0 6.6% 452.6 6.2% 13.6% 0.4 p.p. Capacity*** Depreciation and amortization 184.5 2.4% 176.6 2.4% 4.5% O p.p. Capacity Cost of goods sold 1.5 0.0% 0.0% n/a 0 p.p. Total 6,048.0 77.4% 5,263.3 72.6% 14,9% 4.8 p.p. Utilization Level 59.2% 66.8% 67.5% 79.5% 60.4% 76.1% 48.9% 49.8% 44.9% 43.9% 60.0% 71.9% *In thousand tons *Cakes, snacks, cake mix and packaged toast ***The total production capacity is the maximum yield that can be extracted from the equipment, considering reductions caused by the maintenance stops, setup time, cleaning of lines, restrictions on the maximum number of shifts allowed at the plants, etc.
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