Rumo S A : Use of Proceeds Statement - Green Bond Report

Rumo 2022

Green Bond Report

Use of Proceeds Statement

		RUMO 2022	MESSAGE FROM THE EXECUTIVE TEAM	ABOUT US	KEY PROJECTS	ROLLING STOCK	NEW YARDS AND EXTENSIONS	MODERNIZATION PROJECTS	RESULTS	APPENDICES
		GREEN BOND REPORT

Contents
01. USE OF PROCEEDS	3
▸ Message from the Executive Team	4
▸ About us	5
▸ Key projects	7
02. VALUE GENERATION	9
▸ Rolling stock	9
▸ New yards and extensions	12
▸ Modernization projects	14

03. RESULTS

16

04. APPENDICES

19

2

Use of Proceeds

3

RUMO 2022	MESSAGE FROM THE EXECUTIVE TEAM	ABOUT US	KEY PROJECTS	ROLLING STOCK	NEW YARDS AND EXTENSIONS	MODERNIZATION PROJECTS	RESULTS	APPENDICES
GREEN BOND REPORT

Message from the Executive Team

We are Brazil in motion - protagonists in providing a safe, efficient, and low-carbon logistics solution, contributing to the sustainable development of Brazilian agribusiness and global food security. In 2020, we issued our green bond in the amount of USD 500 million with a 2028 maturity, awarded by the LatinFinance magazine's 2021 Project & Infrastructure Finance Awards.

The projects financed by these bonds are the result of our long-term strategy, and are supported by the greater efficiency in our operations, expanding our capacity to serve our clients and provide a solution that promotes a reduction in the carbon footprint of agribusiness. This is a concrete example that reaffirms that we are on the right track.

Continuing our journey towards transparency, iin this second Green Bond Report, verified by an independent company in accordance with Climate Bonds Initiative (CBI) methodology, we present the evolution of our operational efficiency journey in reducing greenhouse gas (GHG) emissions. The projects and initiatives presented here relate to the relate to the use of proceeds from July 2021 to June 2022.

Investments in the expansion of rail yards have driven the operational start of the 120-wagon train model before than initial expected, leading the way for lower fuel consumption. We continue to invest in modern locomotives with greater energy efficiency, new technologies, and processes focused on increasing our operational efficiency and safety, such as the operation on semiautonomous driving system, Trip Optimizer. These, in adition to other initiatives, contribute to our long-term goal to reduce GHG emissions as well as transit time between the Rondonópolis Terminal (Mato Grosso state) and Santos city port (São Paulo state). During a longer period, from 2015 to 2021, the company's increased efficiency avoided the emission of approximately 1.5 million tons of CO² into the atmosphere.

We are determined to continue on this important journey of value creation, and are confident that, together with our shareholders and stakeholders, we will achieve our goals by delivering clean and democratic logistics to further boost Brazil's participation in the global grain trade.

Rafael Bergman

CFO of Rumo

4

		RUMO 2022	MESSAGE FROM THE EXECUTIVE TEAM	ABOUT US	KEY PROJECTS	ROLLING STOCK	NEW YARDS AND EXTENSIONS	MODERNIZATION PROJECTS	RESULTS	APPENDICES
		GREEN BOND REPORT

About us

We are the largest independent rail logistics operator in the country. We provide logistic services for rail transportation, port elevation* and warehousing.

Our asset base makes us key to our clients from various industrial segments, particularly in agricultural commodities, a material segment for the development and growth of the country, since Brazil is one of the main producers and exporters of agricultural products in the world.

More than 13.5 THOUSAND kilometers of railway lines, operating in the midwest, south and southeast regions of Brazil.

1,400 locomotives and

35,000 wagons make up our rail transport fleet.

In 2021, Rumo was responsible for transporting 25% of the country's grain exports.

8,112 employees in

9 Brazilian states.

Increase of 16% in cargo transported during a six-month period in 2022, compared to the same period in 2021.

• On November 16, 2022, Rumo S.A., the parent company of the Elevações Portuárias operation, located at Santos city port, concluded the sale of 80% of its stake in the company.

5