Três Tentos Agroindustrial S/A : Dados Econômico-Financeiros

Financial Statements

Três Tentos Agroindustrial

S.A.

December 31, 2021

Três Tentos Agroindustrial S.A.

Financial Statements

December 31, 2021

Contents

Financial statements

Management Report ........................................................................................................................ 1

Management Statement on the Financial Statements ..................................................................... 7

Management Statement on the Independent Auditor's Report ......................................................... 8

Independent auditor's report on the financial statements ................................................................. 9

Balance sheet ............................................................................................................................... 13

Statement of income ..................................................................................................................... 15

Statement of comprehensive income ............................................................................................. 16

Statement of changes in shareholders' equity ............................................................................... 17

Statement of cash flows ................................................................................................................ 18

Statement of value added .............................................................................................................. 19

Notes to the financial statements .................................................................................................. 20

TRÊS TENTOS AGROINDUSTRIAL S.A. Management Report

At December 31, 2021

We hereby present to our shareholders the Financial Statements of TRÊS TENTOS AGROINDUSTRIAL S.A. for the fiscal year ended December 31, 2021.

MESSAGE FROM MANAGEMENT

We ended 2021 with robust performance and strengthened our position in Brazil's agricultural sector.

The team at 3tentos, Brazil's most complete agribusiness ecosystem, is dedicated and committed to offering products and solutions that ensure the best agricultural management to our more than 18,000 clients in the state of Rio Grande do Sul and, as of 2021, also in the state of Mato Grosso.

This year is forever marked in the history of the Company with its IPO on the Novo Mercado, the listing segment of the São Paulo Stock Exchange (B3) with the highest corporate governance standards, through which it raised the funds needed to expand its operations in Rio Grande do Sul and Mato Grosso (R$1.14 billion) and assumed an important responsibility with its shareholders and other stakeholders. 3tentos increased its corporate governance standards by creating important governance bodies and/or expanding the scope of existing ones, which included the Board of Directors, Board of Executive Officers, Audit and Related Party Committee, and Sustainability Committee, and already have started to bear fruit.

In January 2022, we carried out a follow-on offering to increase ownership dispersion in 3tentos shares among all investors, whether institutional, foreign or a large number of individual investors who, until then, were unable to invest in 3tentos. Through the offering we aimed to reaffirm our commitment to serve all investor publics with transparent and clear information disclosures to the market to support ownership by all stakeholders.

We continued to consolidate our footprint in Rio Grande do Sul. In 2021, we opened 7 new stores, in the cities of Alegrete, Erechim, Palmeira das Missões, Santiago, São Borja, Uruguaiana and

Vacaria, expanding our coverage to 6.7 million hectares of planted area, or 80% of the total. We have been operating in the state of Rio Grande do Sul for 26 years now, with a constant focus on helping producers to be successful by increasing their yields. As a result, we were able to secure new clients and strengthen our ecosystem.

In 2021, the Company posted Net Revenue of R$5.3 billion (+72%) and Adjusted Net Income of R$505.5 million (+79%). A significant portion of this growth in Net Revenue was due to higher volumes (Ag Inputs +16%, Grain +77% and Industry +3%) in nearly all products. The Company's results will be presented in greater detail on the following pages.

We are experiencing a period of severe drought in the state of Rio Grande do Sul and, despite the differing impacts on yields across the various regions of the state, current figures are indicating shortfalls of over 40% in the 21/22 crop. We are working alongside producers and assessing the best alternatives to minimize losses and help them plan the coming crop years. The impacts of this harvest shortfall, coupled with the shortfalls in other important soybean producing regions of South America (Argentina, Paraguay, Mato Grosso do Sul and Paraná), could lead to higher soybeanprices and consequently provide some relief to the lower revenues suffered by producers. Rural producers are resilient and already are planning the planting of winter crops in Rio Grande do Sul.

We believe 2022 will confirm the strength of our ecosystem in this new challenging scenario that is emerging with expansion in our market positioning by offering the most effective agricultural management to rural producers and adding value to the grains we process in our industrial operations.

Luiz Osório Dumoncel CEO and Founder

OVERVIEW

The Company, Brazil's most complete agricultural ecosystem, is a family-owned business in operation for over 26 years that offers vertically oriented and integrated solutions to farmers and a wide range of retail products in the agricultural input, grain and industrial segments. The business model helps forge long-term relationships with farmers, with the Company currently managing a portfolio of 18,000 active clients. In addition to supplying inputs and acquiring production, the Company also offers farmers training, consulting and technical services to add value through technical sales and by helping them to achieve the highest yields and profits from their crops.

FINANCIAL RESULTS

NET OPERATING REVENUE

The year 2021 started with favorable conditions, with a record harvest in 20/21 in Rio Grande do Sul, combined with good weather conditions and rural producers delivering higher yields supported by intensive monitoring of crops.

In 2021, Net Operating Revenue (NOR) was R$5,339.3 million, growing 71.7% from 2020. All three segments delivered growth, led by Grains, driven by the record harvest and higher storage capacity achieved with the opening of new stores.

The performance of each business segment is presented below:

Retail of agricultural inputs ("Ag Inputs"): by offering a complete range of agricultural inputs, we meet most of the needs of rural producers through the sale of various types of seeds, crop fertilizers and crop protection for soybean, corn, wheat, rice and other crops. Consistent with our expansion plan, we opened 7 stores in Rio Grande do Sul, in the cities of Alegrete, Erechim, Palmeira das Missões, Santiago, São Borja, Uruguaiana and Vacaria, in addition to 1 store in Sinop, Mato Grosso. We currently operate 48 stores, where our more than 135 consultants (agronomists and technicians) add value to the inputs sold with the goal of increasing yields for our clients. This segment also has two seed processing units in the city of Santa Bárbara do Sul, Rio Grande do Sul, and a fertilizer mixing unit in the city of Ijuí, in the same state. Net revenue from this segment came to R$ 1,534.1 million, representing growth of 68.7% compared to 2020. Over the course of 2021, input prices rosesharply driven by concerns with key global supply chains and by higher prices of key commodities, such as soybean. The result achieved by the segment reflects pricing conditions and the growth in sales volumes of our products supported by expansion through new stores and the maturation of existing ones.

Origination and trading of grain ("Grains"): we buy and sell grains from small and medium-sized farmers, with a static storage capacity of 900,000 tons of soybean, corn and wheat. To operate the logistics and distribution of grains, the Company has its own fleet of 73 trucks. Net revenue from this segment came to R$ 1,412.3 million, for growth of 183.8% compared to 2020. The result is explained by the higher origionation of grains resulting from the record 20/21 crop in Rio Grande do Sul, and by the higher trading volume of farmers via Barter (inputs purchased in exchange for grains), coupled with the expansion in coverage area.

Industrialization of grain ("Industry"): through our two plants located in the cities of Ijuí and Cruz Alta, both in the state of Rio Grande do Sul, we process soybean into meal, which is an important component of animal feed used in poultry, swine and cattle farming; soy oil and biodiesel. Our daily soybean crushing capacity is of 3,000 tons, coupled with daily biodiesel production capacity of 850,000 liters. We own two rail branches (accessing our facilities) connecting the units in the cities of Ijuí and Cruz Alta to the Port of Rio Grande. Net revenue from this segment came to R$2,392.9 million, for growth of 40.3% compared to 2020. The result is explained by the growth in sales volume associated with the expansion in biodiesel production capacity in 2021 and the increase in prices over the year supporting revenue growth.

COST OF GOODS AND PRODUCTS SOLD

Cost of Goods and Products Sold rose 77.6%, to R$4,638.3 million, with gross margin of 13.1%. The increase was mainly due to the following factors:

Ag Inputs: cost of goods and products sold before fair value adjustment in the Ag Inputs segment amounted to R$1,167.4 million, for an increase of 56.7% compared to 2020. The increase was mainly driven by the sharp rise in prices of fertilizers and crop protection, as well as by sales volume growth.

Grains: cost of goods and products sold before fair value adjustment in the Grains segment amounted to R$1,300.6 million, for an increase of 180.5% compared to 2020. The increase was mainly due to the higher sales volume and to the higher unit cost of grain origination.

Industry: cost of goods and products sold before fair value adjustment in the Industry segment amounted to R$2,056.4 million, for an increase of 50.8% compared to 2020. The increase was mainly due to higher prices in key raw materials used in the production of biodiesel.

The fair value adjustment of instruments (assets and liabilities) pegged to commodities, not allocated to each of the operating segments of the Company, represented an expense of R$113.9 million, increasing 182.2% compared to 2020. The increase was mainly due to the lower level of barter transactions by producers in the 21/22 crop year compared to the 20/21 crop year, which led to a lower amount of Rural Producer Certificates (CPR) and impacted the change in fair value adjustment between periods.