Biosev S A : Dados Econômico-Financeiros

(Convenience Translation into English from the Original Previously Issued in Portuguese)

Biosev S.A.

Individual and Consolidated

Financial Statements

For the Year Ended

March 31, 2021

Financial Statements
March 31, 2021
CONTENTS
INDEPENDENT AUDITOR'S REPORT................................................................................................................	04
BALANCE SHEET ...............................................................................................................................................	09
STATEMENT OF OPERATIONS ........................................................................................................................	10
STATEMENT OF COMPREHENSIVE INCOME (LOSS) ...................................................................................	11
STATEMENT OF CHANGES IN EQUITY ..........................................................................................................	12
STATEMENT OF CASH FLOWS .......................................................................................................................	13
STATEMENT OF VALUE ADDED ......................................................................................................................	14
	NOTES
1.	GENERAL INFORMATION.......................................................................................................................	15
2.	SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES ...................................................................	16
3.	CASH AND CASH EQUIVALENTS ..........................................................................................................	31
4.	SHORT- AND LONG-TERM INVESTMENTS...........................................................................................	31
5.	TRADE RECEIVABLES............................................................................................................................	31
6.	INVENTORIES .........................................................................................................................................	32
7.	BIOLOGICAL ASSETS .............................................................................................................................	33
8.	RECOVERABLE TAXES ..........................................................................................................................	33
9.	ESCROW DEPOSITS...............................................................................................................................	34
10.	CURRENT AND DEFERRED INCOME TAX AND SOCIAL CONTRIBUTION .........................................	34
11.	LEASES....................................................................................................................................................	37
12.	INVESTMENTS (PROVISION FOR INVESTMENT LOSS) ......................................................................	38
13.	PROPERTY, PLANT AND EQUIPMENT..................................................................................................	41
14.	INTANGIBLE ASSETS .............................................................................................................................	43
15.	BORROWINGS AND FINANCING ...........................................................................................................	44
16.	TRADE PAYABLES..................................................................................................................................	45
17.	TAXES PAYABLE.....................................................................................................................................	46
18.	PROVISION FOR TAX, LABOR, CIVIL AND ENVIRONMENTAL CONTINGENCIES .............................	46
19.	RELATED PARTIES.................................................................................................................................	48
20.	EQUITY ....................................................................................................................................................	54
21.	NET REVENUE AND COST OF SALES AND SERVICES.......................................................................	55
22.	EXPENSES BY NATURE .........................................................................................................................	56
23.	FINANCE INCOME (EXPENSES) ............................................................................................................	57
24.	OTHER OPERATING INCOME (EXPENSES) .........................................................................................	57
25.	LOSS PER SHARE...................................................................................................................................	57
26.	RISK MANAGEMENT AND FINANCIAL INSTRUMENTS........................................................................	58
27.	COMMITMENTS.......................................................................................................................................	65
28.	INSURANCE (UNAUDITED) ....................................................................................................................	66
29.	EMPLOYEES' BENEFIT...........................................................................................................................	66

30.	SEGMENT INFORMATION ......................................................................................................................	67
31.	COVID-19 EFFECTS ................................................................................................................................	68
32.	SUBSEQUENT EVENTS..........................................................................................................................	69
33.	APPROVAL OF FINANCIAL STATEMENTS............................................................................................	69

Tel.: [phone]	Rua Major Quedinho 90
Fax: + 55 11 3045 7363	Consolação - São Paulo, SP - Brasil
www.bdo.com.br	01050-030

(Convenience Translation into English from the Original Previously Issued in Portuguese)

INDEPENDENT AUDITOR´S REPORT ON THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS

To the

Board of Directors and Shareholders

Biosev S.A.

São Paulo - SP

Opinion

We have audited the individual and consolidated financial statements of Biosev S.A. ("the Company"), respectively referred to as "Company" and "Consolidated", which comprise the balance sheet as of March 31, 2021 and the statements of income, comprehensive income, changes in equity and cash flows for the year then ended, and notes comprising the significant accounting policies and other explanatory information.

In our opinion, financial statements referred to above present fairly, in all material respects, the individual and consolidated financial position of Biosev S.A. as of March 31, 2021, and its individual and consolidated financial performance and its individual and consolidated cash flows for the year then ended in accordance with accounting practices adopted in Brazil and International Financial Reporting Standards ("IFRS"), issued by the International Accounting Standards Board ("IASB").

Basis for opinion

We conducted our audit in accordance with Brazilian and International Standards on Auditing. Our responsibilities under those standards are further described in the "Auditor's responsibilities for the audit of the individual and consolidated financial statements" section of our report. We are independent of the Company and its subsidiaries in accordance with the relevant ethical requirements of the Code of Ethics for Professional Accountants and the professional standards issued by the Brazilian Federal Accounting Council ("CFC"), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Material uncertainty as to the ability to continue as a going concern

We draw your attention to Note 1 to the individual and consolidated financial statements, which states that the Company as of March 31, 2021 had negative net working capital of R$ 2.876.887 thousand in the individual and R$ 5.791.115 thousand in the consolidated, respectively, and presented individual and consolidated shareholder´s equity deficiency of R$ 853.187 thousand and R$ 847.034 thousand, respectively. As disclosed at this same Note 1, Management has been implementing actions to reestablish the economic-financial situation and the equity position of the Company, mainly through the change of control with the capital contribution by new shareholders and the renegotiation of debt agreements. Additionally, we draw your attention to Note 15 that states that the Company has breached covenants contained within their debt agreements, which could allow creditors to declare the entire unpaid principal and interest balances due and payable upon demand if the Company does not obtain a Waiver from those creditors. As of March 31, 2021, the eventual non- confirmation of the mentioned business plan, the need to complete the transfer of control and get the capital contribution from the new shareholders, failure to obtain a Waiver from creditors along with other matters, indicate the existence of material uncertainty, which could raise significant doubts as to the Company's ability to continue as a going concern. Our opinion is not qualified regarding this matter.

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Emphasis of matter

Transactions with related parties

The Company and its subsidiaries have carried out significant transactions with related parties of the Louis Dreyfus Company Group. The effects on results of these transactions and the corresponding assets and liabilities are disclosed in Note 19. Our opinion is not modified with respect to this matter.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current year. These matters were addressed in the context of our audit of the individual and consolidated financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

In addition to the subject described in the section "Material uncertainty as to the ability to continue as a going concern", we have determined that the following matters are the main audit matters to be communicated in our report.

Biological assets measured at fair value

As disclosed in Note 7 to the financial statements, the Company quarterly calculates the fair value of its biological assets through the discounted cash flow method. This method determines that Management adopt assumptions, also quarterly reviewed, based on information generated by internal reports and external sources.

Adjustments to the assumptions used in the calculation of the biological assets may produce significant effects on the financial statements, in the captions "Biological assets" under Current Assets and in "Cost of goods sold" in Income (loss) for the year.

Our audit response to the matter of "Biological assets measured at fair value"

We have evaluated for the current year the calculation of the discounted cash flow method, analyzed the integrity of information, tested and evaluated the internal controls involved in the preparation of the information used and also the adequacy of the methodology applied in the calculation of prices used by the Company.

Our work revealed that the assumptions and methodology used for the valuation of biological assets are reasonably consistent with the market practice, as well as with the prior period.

Management of risks, derivatives and hedge accounting

According to Note 26 to the financial statements, the Company uses certain strategies to hedge its future cash flows against the impact of relevant variables, such as exchange rate fluctuations and volatility of prices in the market. These strategies consist in hiring specific derivative financial instruments for each type of risk (future, swap, forward, etc.).

Some of these financial instruments are called hedging instruments linked to a specific, determined and documented risk, for the purpose of recognizing at the same point in time the result of the impacts of the instrument (derivative or non-derivative) and of the object, which is known as hedge accounting.

Our audit response to the matter of "Management of risks, derivatives and hedge accounting"

We obtained knowledge on the financial instruments used by the Company, on its controls over the process of planning and designation of instruments for hedge accounting. We sent external confirmation letter to financial institutions, reviewed the documentation and recalculated the valuation of derivatives. Additionally, we evaluated the adequacy of the disclosures made by Management in the Company's financial statements.

Based on the evidences found, we have considered the valuation and accounting of the hedging derivatives, as well as their disclosure in the notes, acceptable in the context of the financial statements.

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