We are Raízen, a Brazilian company committed to offering the most diverse forms of energy, today and tomorrow.|GRI 102-1|

We began our activities in 2011, and since then, we have advanced in the integration of all stages of the sugarcane production chain for the production of sugar, ethanol and bioenergy.

We have also developed a fuel distribution and marketing network, powering businesses in a wide range of sectors of the economy, and through Shell brand licensing, supplying service stations and airports throughout the country. Our operations also include Shell Select convenience stores, whose objective is to provide a positive experience for all those who move with our energy.

Our movement is one of growth. In 2019/2020, we opened the first solar energy unit, in Piracicaba (SP), and completed our first year of operations abroad after the acquisition of Shell assets in Argentina¹.In addition, we entered into a partnership with Femsa Comércio to boost our convenience and proximity business (see items below).

What drives us is a team of around 29,000 employees, in addition to close to 15,000 partners including sugarcane producers, carriers, and dealers, mobilized to make a difference². Together, we are celebrating another harvest of achievements, presented throughout this report, and are featured among the most admired companies in Brazil³. |GRI 102-7, 102-8|

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1 Operations not included in the Global Reporting Initiative (GRI) indicators because they are still being integrated into management.
2 Given the recent acquisition of the operation, employees and partners in Argentina have not yet been included.
3 According to the 2019 LinkedIn Top Companies list

... that fuels Brazil... |GRI 102-2, 102-4, 102-6, 102-7|

Our root is Brazilian!

We operate 26 sugar, ethanol and bioenergy production units in the states of São Paulo, Goiás, and Mato Grosso which, together, have an installed capacity to crush approximately 73 million tons of sugarcane per year.

Because of this structure, our energy is ever-present in the daily life of Brazilians, whether sweetening coffee in the morning or tea in the evening, our ethanol in the formulas of perfumes, or even in the electric energy that we sell to partners and distributors!

From sugarcane, we produce and sell various sugars for different purposes, such as the pharmaceutical and food segments. Today, we are one of the largest producers of this commodity in the world, and our efficiency in this activity is expected to increase over the next few years.

We also produce many types of ethanol for home applications, production of ether, fuel for vehicle engines (pure or mixed with gasoline), the formulas of cleaning products, paints and varnishes, and in the production of beverages, pharmaceuticals and cosmetics.

We improve the circular economy with each harvest, innovating in the forms of production for better use of raw material. One of the highlights is our second-generation ethanol (E2G)—learn more about it here—which, in the 2019/2020 harvest, went into the perfume formulas of two product lines of O Boticário and Quem disse, berenice?, available throughout Brazil. The products carry a seal on the packaging that indicates the presence of Eco-Alcohol, a name adopted by Grupo Boticário to classify our input. This partnership reinforces the purpose of providing innovative, integrated and responsible solutions that create value for our clients' customers.

We also stand out in the production of bioenergy from sugarcane bagasse. Our production supplies the energy demand of our industrial operations and the surplus is sold in the market.

Committed to contributing to increasing the share of renewable sources in the energy mix, we also invest in the diversification of our energy portfolio. In 2019/2020, we opened our first solar energy unit and advanced in the construction of our biogas plant in Guariba (SP), which should be completed by the beginning of 2021 (see more here).

We entered into a joint venture with WX Energy, which places us in the free electricity trading market with a model that makes it possible to create integrated and customized solutions for the different customer profiles in the sector, streamlining the growth curve and contributing to the competitiveness of a growing market.

We also provide consulting services to large energy-consuming companies and/or companies that require incentivized energy. The work is done by an internal team and aims to guide customers on how to optimize their energy costs based on diagnosis and review of the price and type of energy used.

In the fuel distribution and marketing sector, our energy powers industries in various sectors. In addition, through Shell brand licensing, we power cars, buses, trucks, and business and commercial aircraft.

We rely on a network of dealers (owners of fuel stations, terminals and bases in airports) that covers all Brazilian states, a structure that consolidates us, year after year, as one of the main fuel distributors in the country.

Each crop year, we advance in improving the consumer journey when they stop for fuel. Under the Shell brand, we always work to achieve the highest technological advancements, cutting-edge services, and quality in fueling products, elements that make up our most important innovation: Humanology. We also have the Shell Select chain of convenience stores, designed as an ideal option to support the daily lives of those looking for diversified products and services or who just want to take a break to recharge their energy (see more here).

In recent years, R$ 50 million has been invested which, among other actions, has provided a new generation of stores. The model provides simplicity for the operation, a differentiated experience for consumers, and profitability for the franchisee (see more here). We have continued to increase the penetration of this new generation; in the current crop year, 30% of all stores adhered to this model.

Franchises, under the Shell Select brand, are a central part of the growth strategy in the convenience segment, and our performance will be further increased over the next few years, thanks to the partnership we are establishing with Femsa Comércio, which owns 50% of the shares of our joint venture, Raízen Conveniências, valued in the transaction at R$ 1.122 billion, free of debt or cash.

Femsa Comércio operates the OXXO brand, with more than 18,000 stores in Mexico, Chile, Colombia, and Peru; a healthcare division, which includes pharmacies and related activities; and the fuel segment, with a chain of service stations under the OXXO Gas brand, of fuel for transportation..

The goal is to further strengthen the relationship with dealers, leveraging the proven operational experience of the new partner with a differentiated offering, greater support from consultants to stores, and the adoption of best practices. We will seek to expand our chain of convenience stores at Shell Select branded service stations and develop the proximity store business outside OXXO branded service stations. The goal is to open nearly 500 stores under both brands in the next three years with an investment of more than R$ 200 million, creating close to 3,000 direct jobs.

From field to service stations, in all links of our chain, we generate and share value. In 2019/2020 alone, we generated more than 10,000 jobs in the industry and in partnership with our network of franchisees. Over the next three years, we will invest more than R$ 200 million to expand this network, which should generate nearly 3,000 direct jobs.

During this period, we also earmarked R$ 8.7 million in educational, social and professional inclusion and in cultural and sporting projects, and we recorded a consolidated net income of R$ 2.2 million, numbers that confirm our increasing contribution to fueling Brazil.

COVID-19: We have mobilized to help the public

The growing number of people afflicted by the respiratory disease caused by the novel coronavirus (COVID-19) worldwide led the World Health Organization (WHO) to declare the outbreak a pandemic on March 11, 2020. Suddenly, the world was forced to adapt to a completely new reality.

To this end, we put in place a contingency plan, aiming to preserve the health and integrity of our team, as well as the safety and continuity of essential operations, while maintaining close contact with authorities, suppliers, customers and other stakeholders. This plan is being regularly assessed and updated. We remain attentive to the developments and impacts of this pandemic on the economy, adapting business according to continually unfolding scenarios.

First of all, we must take care of ourselves. The health of our employees and their families is an absolute priority! We opted to adjourn financial and operational projections for the next harvest.

We have made a public commitment not to reduce our workforce, we have adhered to working from home for those activities where this alternative is possible, we adapted our facilities and processes to ensure the health of professionals who need to be in the field, and all employees who are part of the risk groups for COVID-19 were instructed to adopt specific social isolation, care and monitoring measures.⁴

4 Individuals over 60 years of age and those with chronic diseases (diabetes and hypertension, among others)..

In our team:

• We established a communication channel about COVID-19, available 24 hours a day via phone or WhatsApp, for employees, contractors and their families.
• We suspended all possible flights, domestic and international.
• We avoid overland travel as much as possible, adopting preventive measures when cancellation is not possible.
• We made the whole team aware of the importance of avoiding physical contact.
• External meetings are now held using remote communication channels.
• Internal meetings, when not done remotely, are restricted to a maximum of 10 participants, who respect social distancing measures of at least 1.5 meters.
• We prepared for the H1N1 flu vaccination campaign for our employees.

We have always been faithful to our purpose of mobilizing people and businesses, and that purpose remains the same in these unprecedented times. We quickly launched measures to support our resellers and franchisees during this time of crisis, in addition to renegotiating our main supply contracts to adapt them to this new reality. Through the Raízen and Shell brands, we have also joined forces with a number of partners to help overcome this current challenge. We believe in the future, and therefore we contribute to building this future with a great deal of energy.

In Brazil:

• We donated more than 1.1 million liters of 70% alcohol to over 98 hospitals in 76 cities in 7 Brazilian states. This contribution, distributed in 250-liter drums, also included the donation of product lots to the Sugarcane Industry Union (UNICA), to police forces in Rio de Janeiro, to São Paulo's Public Security Department, to one penitentiary, and to city governments in the state of São Paulo.
• In São Paulo and Rio de Janeiro, the states with the highest number of infected individuals, we made donations to field hospitals for patient care. In Rio de Janeiro, we have allocated resources to help set up temporary hospitals. In São Paulo, we donated 70% alcohol to the temporary hospitals set up in the Pacaembu stadium and the Anhembi Expo Center. We also supplied 2,000 liters of diesel per day to power the energy generators for the structure assembled at the football stadium in the capital city of São Paulo.
• We partnered with Natura and Ypê to bottle 70% alcohol for distribution at roadside gas stations and at distribution points defined by the Social Transport Service (SEST) and the National Transport Learning Service (SENAT). This operation is intended to distribute the product to truck drivers, who are essential workers for supplying the country. Initially, there will be 245,000 liters of 70% alcohol distributed along roads and toll plazas in nearly 130 locations, a logistics effort in partnership with CCR. Truckers will also receive H1N1 vaccinations, temperature checks, and guidance on essential care against COVID-19.
• We partnered with the Raia Drogasil drugstore chain, which will bottle and sell 70% alcohol. All profits from product marketing are being allocated to initiatives to combat coronavirus and to the purchase of personal protective equipment for hospitals.
• We donated hand sanitizer and 70% alcohol to employees and customers of Shell service station resellers in the most affected regions for the protection of their employees and customers.
• Shell Select convenience stores now offer non-perishable products and personal hygiene and cleaning items, such as Shell Select brand hand sanitizer, providing a safe option for purchasing essential items at a fair price and in locations closer to customers.

In Argentina:

• We were the first company in the fuel sector to implement risk mitigation protocols at service stations, including the use of personal protection items, modification of work routines, and the adoption of strict cleaning protocols.
• Even before the local government requirement, we implemented protocols to manage social distancing, minimizing the risks of contagion and ensuring the safe continuity of operations.
• We promoted a campaign to donate food and cleaning products to families in socially vulnerable communities around our main operations.
• We helped with the purchase of essential supplies for the main health institutions in the regions where we operate.
• We maintain open communication channels with all our stakeholders: employees, customers, suppliers, communities, government, and journalists, carrying out specific relationship actions with each of them, consistently reinforcing the importance of responsibility in collective care.

In this scenario of constant changes, other actions have also been taken to address the challenges arising each day. We use our blog to communicate our initiatives. Click here to access this channel.

We recognize the efforts of every professional on our team: employees, contractors and partners. We know that many families depend on our work, especially at this difficult time. Let our strength be the strength of Brazil. We are often invisible, but always instrumental. Together, we move forward and excel!

and extends beyond borders...

In the 2018/2019 harvest, we identified a business opportunity similar to our Brazilian fuel distribution operations, with an opportunity to obtain operational, financial and marketing synergies, in addition to expanding the potential for convenience store businesses and trading. What is exceptional, however, is a refinery integrated into the business, a characteristic of the operation of all distributors in our neighboring country.

The move reinforces that, even though we are looking to the future—with a tendency to increase the share of renewable sources in the energy mix—we are also attentive to current demands (see here).We have taken the first steps on our journey abroad and concluded the acquisition of Shell assets in Argentina.

During the first months of activity, we faced challenges stemming from political and economic instability, leading to a strong devaluation of the Argentine Peso against the US dollar and consequences on interest rates and inflation. Even so, we increased our market share in retail, lubricants, aviation, marine, and asphalt. In addition, we increased our service station network with the addition of 60 service stations in the period.

The move reaffirms our confidence in a structured market in the long term, in the quality of the assets acquired, in the knowledge of the local team, and in the strength of the Shell brand in Argentina—factors that led us to consolidate the transaction, which totaled more than US$ 900 million.

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