Message from the president

(G4-1, G4-13)

Nourishing the world in a safe, responsible and sustainable way. That's Cargill's purpose. It expresses our strategic direction and also the way we seek to create value for the business, our clients, and society – committed to people, the planet, and a dignified and healthy future for everyone. As we look back at 2016, once again we are immensely proud to see the principles of responsibility, safety, and sustainability present in our decisions and relationships with clients, employees, shareholders, and the entire community.

With determination and confidence, we saw the Brazilian political-economic crisis of 2016 as a challenge, an opportunity, and we did not let ourselves falter. Today, it is impossible to think about feeding the world without including Brazil. The country is strategic to fulfilling Cargill's overall purpose. Therefore, the contributions on our part remain significant. We ended 2016 with nearly BRL 775 million in investments, which enabled, among other actions, the completion of the expansion works at the Três Lagoas (MS) plant and at the Santarém (PA) terminal, and the construction of the Miritituba (PA ) terminal, in addition to the launch of the operation of our first river fleet in Brazil – Cargill's second largest fleet in the world. These investments will enable significant gains in cost and efficiency in grain exports in the coming years.

“Nourishing the world in a safe, responsible and sustainable way. That's Cargill's purpose.”

Even with so many works, especially in the North and Midwest of the country, and the routine operations of our units, we end 2016 without any fatal accidents in Brazil, a result of the continuous prevention, training, and communication work carried out, with improvements implemented every year. Safety has always been and will continue to be a priority for Cargill, because life is non-negotiable. We are committed to keeping this indicator at zero, and helping the company reach the zero fatality target globally.

The year 2016 was also a period of intense efforts and achievements in the quest to expand and diversify our businesses. We strengthened our presence in the cosmetics segment with the launch of Lyveum, an ultra-refined vegetable oil, an innovative solution for the sector. Following the growth strategy, we acquired a micro-ingredient company based in Ponta Grossa (PR). We also concluded the second wave of the project for consolidating financial, accounting, tax, and human resources activities, as well as other areas, in Cargill Business Service, in order to increase the efficiency of our processes.

We also brought novelties to the consumer products segment. In the Liza line, we invested in a differentiated product, Liza Caseira (Homemade) mayonnaise with extra virgin olive oil. In addition, we announced our partnership with Borges for marketing olive oils and vinegars. We launched Liza Algodão (Cotton) in special packages for foodservice. In the area of animal nutrition, we put Vita Pet on the market, a premium food line for dogs and cats, the result of the joint work of different areas of Cargill.

“We believe in dialogue as a tool for change.”

Regarding our commitment to the environment, we highlight the main results achieved one year after the launch of our Forestry Policy, including: training 300 employees to implement the Cadastro Ambiental Rural (CAR – Rural Environmental Registry), CAR evaluation of 12,000 producers related to the soybean production chain in Brazil, and training over 148,000 farmers and suppliers (in Brazil, Indonesia, Paraguay, Zambia, and West Africa) to promote sustainable land use.

We also believe in dialogue as a tool for change. It was also through this transparent approach that we created and acquired significant collective construction space with other companies, civil society organizations, academia, and government representatives. Among the projects carried out in this context, I highlight the work with the Moratória da Soja (Soy Moratorium) and the Grupo de Trabalho da Soja (Soybean Working Group); participation of the Coalizão Brasil: Clima, Florestas e Agricultura (Brazilian Coalition on Climate, Forests, and Agriculture), focused on reducing greenhouse gases and the low carbon economy; and collaborating with the Tropical Forest Alliance 2020 to combat deforestation.

I share with you the immense pleasure of seeing that our responsible attitude has been recognized beyond our walls. Some examples that filled us with pride were the presence of Cargill in the Guia Exame de Sustentabilidade 2016 (2016 Exame Sustainability Guide); recognition as the largest company among the 500 in the sector in the 12th edition of Best of Agribusiness; two of our retail brands winning Top of Mind, remaining undefeated in the Agroleite Trophy, and many other awards.

It really was a year of many accomplishments, and I end by thanking our staff for their engagement and commitment, and our clients and partners for choosing Cargill. I invite everyone to learn a little more about our initiatives and performance in 2016 on the following pages.

Enjoy your Reading!

Luiz Pretti

President of Cargill in Brazil