Hi, everyone. My name is Cristiano Veloso. I'm the founder of Verde AgriTech PLC. I would like to thank you very much for joining us for our Q1 2021 results meeting. If you're watching it live, thank you very much for taking the time to be with us to contribute, send questions, which we'll pretty much look forward to answering all of them later on during the presentation. Thank you for attending it, so you can listen to our Chief Financial Officer, Felipe Paolucci, giving the financial presentation for the quarter. If you're watching it on YouTube, thanks very much for doing the same. Thanks very much for your interest in Verde AgriTech PLC. I will allow then Felipe Paolucci to begin the presentation now, and if anyone has any question, I believe there is a Q&A symbol at the bottom of the screen which you can click and start sending questions as the presentation progress. One more time, thank you very much for being with us here today, and Felipe, please go ahead. Thank you, Cristiano. Can you see my screen now? Yes, we can. Yes. Thanks, everyone, for joining. I'm going to present the Q1 2021 results for everyone. First, we have our disclaimer, which will be available publicly later on our website and everywhere to look in detail, everyone, if you need it. Beginning with the Q1 highlights, I'd like to say that we still remain with a good credit limit approved of over BRL 22 million, with an average interest rate of close to 1.1% per month. Currently, the company has a total loan of close to BRL 10.5 million, most of it in long-term perspective, for three to five years time of loans. We've ended Q1 with BRL 2.02 million cash held by the company, with an increase of 150% year-over-year. A bit on profitability, gross margin increased 141% in Q1 2021 compared to 35% last year. Sales increased by 63% in Q1, and the company recorded a net loss of BRL 1 million in Q1 2021, what is in line with the company expectation for the first quarter, mainly due to the seasonality of our business. Revenue increased by 63% in Q1, and if you consider that exclude the exchange rate impact, would say that our growth in revenue is over 110% year-on-year. Operational, the company is still full permitted to mine 482,000 tons per year. Plant 1 is in operation with bags since beginning of the year, end of 2020, and currently, 4% of our sales are in this product already, the bags, and 14% of the orders in the quarter end was already with bags. We expect to launch a new technology in a few weeks, and our webinar will be held on June 9th. Everyone is invited, you will receive also invitation by email and newsletter. On the right side of the screen, you can see that we had another strong first quarter in growth. The company has announced already in the last press release, a 10% increase in our revenue guidance to BRL 55 million against BRL 50 million that we had before, which represents already a 56% growth year-on-year. What's good to highlight as well is that if we continue to see the strong growth, we will be probably improving also this target again in the coming quarter. Hopefully, it happens soon. The company continues to make investments in high qualified employees, what also will be explained later. It will also, of course, impact our SG&A expenses. Moving to financial statements. Financial statements in the next chart, you can see Q1 in the left side, 2021. Q1 2020 in the middle, in the right side, the comparison year-over-year. As I've mentioned, the revenue grew over 63%, production cost a bit lower, 48%, in consequence, our gross margin increased close to 100% to CAD 342,000. Gross margin also increased to 41%. This gross margin growth is mainly due to CIF sales, what impacts here in our revenue. Sales expenses, growth of 26%, general expenses at 66% year-over-year comparison. I have two charts later to explain a bit more in details. The operation profit loss before non-cash rents, we are a bit worse than last year, 34% worse than 2020, mainly due to general expenses. Going down net profit loss, we've ended the quarter with a loss of CAD 1 million against CAD 792,000 last year. This CAD 1 million was already expected by the company for this quarter. A bit on values per ton, which is very important for our business as well. You can see the tons sold, we had 17,000 tons against 10,000 last year. Revenue per ton is a wash. We are at CAD 50 against CAD 50 last year. The product cost per ton a decrease on 10% year mainly due to exchange rate impact that reduced our Brazilian real cost, our costs in Canadian dollars. Gross margin of 41% against 35% last year. A bit on sales, you can see here on the left side per quarter, the volume sold by the company in Q1. As you can see, we came from 2018 of 0. Our factory was concluded end of Q2 2018. 2019, just 1,000 tons, 2020, 10,000, and now we are already on 16,000 in the first quarter of the year. That's a good comparison, and you can see that in two years, basically, from 1,000 to 16,000 tons in the trimester. In the right side, revenue also shows a relevant increase and shows a trend of growth that we are expecting for the coming years as well. From BRL 154,000 in 2019 to BRL 510 and then BRL 831,000. On sales, general and administrative expenses, as I've mentioned before, the company is investing in people, high-qualified people that want to support our growth and also to achieve our customers' expectations in extremely high level. It, of course, costs us a bit, and then it explains why our sales and administrative expenses increased on 14% in Canadian dollars. In the second line, the product delivery freight also increased. I'm going to show in the next chart as well. We are focusing in CIF, which we can control much more the exact date that the client will receive the product, and this help us in the factory as well. Related on general expenses, we have here five expenses that we opened in presentation. General administrative, that shows us an increase of 118%. IT, of course, IT, in general, I want to explain in the next chart, IT, you can say that basically, we are working with Salesforce. For example, when we have additional expense as well or additional people, it costs to us as well here. The total general expenses, an increase of 66% year-over-year. On chart number nine, we have the sales expenses on the left side, general expenses on the right side. In the sales expenses, we can see that the total growth is basically due to total marketing and sales, 40%, and then freight. We can see that freight, we had like 14% already in 2021 Q1. In general expenses, also on the right side, you can see that the key point here is that we have additional 12 administrative employees, headcount increasing from 14 to 26, and also Q1 2021 expenses related to incentive compensation. Just a second. Yeah. The last one here on chart, you can see FOB and CIF. FOB, the freight is responsibility of the customer. On CIF, the freight is responsibility of Verde. We can see the growth here. Last year, we had only 300 tons sold on CIF, and this year we had already 6,600, which represents around 40% of the total of the quarter. That's a huge increase that supports in the freight expenses, increase a bit the gross margin, but basically, the good point of it is that the company owns the calendar, the schedule and the dates that we expect each product to be removed from our factory. What happens helps a lot our supply chain. On financial summary, a bit on revenue. Revenue from sales, Q1 was BRL 831,000. About 16.5 thousand tons sold and a price of BRL 50 per ton. This average per ton, as I've mentioned before, is pretty similar to last year. On profitability, sales increased by 63%, and the company recorded a net loss of $1 million, but as I've mentioned as well, in line with the company's expectation for the first quarter, compared to a net loss of $792,000 last year. This $216,000 increase is mainly due to additional expenses in order to continue growing in accelerated pace while upholding also the customer satisfaction. EBITDA margin then was 41% compared to 35% last year. On cash, the group increased by 150% to a total of $2.02 million on hand in the end of the quarter, compared to $806,000 last year. One of the reasons here is the loans that we've took the opportunity to take last second semester of 2020. This helped us for our cash flow perspective and is supporting our growth and long-term sales to the customers. Here we have a summary of the interest-bearing loans and borrowings of the company. That sums in the total the BRL 10.5 million or BRL 10.3 million that I've mentioned in the third chart. You can see that most of the loans are close to 10%-12%, what is considered a good rate, taking in consideration that the government in Brazil is close to 8.08% per year in a public bond. This chart shows a bit on exchange rate. You can see that the Canadian dollar and US dollar against Brazilian real has the same trend. We had a big devaluation in the beginning of the COVID-19 last March 2020. Then we had also a peak in the Q1 of this year, and then now we've reduced it. The Canadian dollar is 4.36 and US dollar is 5.39. Actually compare year-on-year, the real is significantly weaker than Canadian dollar and U.S. dollar. On potassium chloride price, you can see that we had also last year after Q1, a relevant devaluation of the potash price CFR Santos, Brazil. Now we do see a trend and we had in the last week, few weeks, an increase of the potash price, closing now in May, close to $355-$360 per ton CFR delivered to Brazil. What of course is going to reflect soon in our sales price and revenue and probably profitability. The second chart, you can see a 30-year history comparison from late 1991 for the last 12 months. We can see that the price is not that low anymore, but we can still have significantly increase in the coming months. This chart summarizes a bit in the year-on-year sales growth. The first table on the top shows the tons. You can see that 2018, 29,000 tons, 2019, 119,000 tons, 2020, 243,000 tons, now our expectation here is close to 388,000 tons. It's a growth of 56% around. We had in the beginning a target of 350,000 tons and a revenue on BRL 50,000, what we are revising so far is the revenue of BRL 55 million for 2021. Chart number 16, revenue. You can see it's the full- year revenue. 2020 Brazilian reais, you can see 2020 finalized BRL 35 million. In the end of March, we had BRL 3.5 million of revenue. We also had on hand at the end of the quarter additional, another BRL 14 million of sales, what make us confident to deliver this BRL 55 million revenue target revised for 2021. Sean, that's it. I think we are here for Q&A section. Anything you need, I'm here to support. Thank you. Thank you, Felipe. Excellent. Ladies and gentlemen, we've received a few questions so far, but I was hoping for more. At the moment, there are only three questions. Let's start with them, but let's try to keep the interaction. The first question comes from Chris Thompson, and he's asking, what impact is the local drought likely to have on your company target of BRL 55 million for 2021? Chris is correct. It has been a little bit drier in some regions of Brazil this year. It's not affecting all the country equally. The good news is that we're expecting some rain for Saturday, which would significantly improve things. Having made this disclaimer, the short answer for your question, Chris, is that we don't expect any impact from the local drought to our company targets. We will carry on working as hard as we've been to make sure we can achieve or perhaps overcome this sales target for BRL 55 million. The next question by Mark Bridges. Mark is asking, might it be possible to borrow money from a Canadian bank where the interest rates are far less than your local banks? We've spoken to Canadian banks. There's always the possibility. One, we don't have any conversation ongoing with any bank, Canadian bank at the moment about a loan. What usually happens, Mark, is when you are borrowing money in a strong currency, let's say in Canadian dollars, in U.S. dollars, and when your operations are in Brazil, in a weak currency, very volatile, it's often more prudent for you to be borrowing funds locally. When you adjust interest rates from a strong currency to a weak currency, quite often they translate to be equivalent, let's put it this way. Felipe, would you like to add anything to Mark's question? Yeah. Foreign currency, actually. Yeah, there is some point that I think it would be good to highlight that if we go to a loan in strong currency, as you mentioned, I know it would be cheaper, the interest rate per year. However, we would need to hire a head, a financial head here in Brazil, and this would cost maybe 8%-10%. You can say in the perspective of pandemic situation like we are, it might be also even not achievable. In the end of the day, the cost could be much higher. It seems to be cheaper, but in the end of the day, it might be higher. The company prefer to take these loans in Brazilian real currency and avoid this currency litigation, even though that is not that cheap, this kind of loan, yeah. Having said that, Felipe, could you please stop sharing your screen? Sorry, sharing your presentation. Mark, by all means, if you want to lend us some money, we're open to it. We're open to listen to proposals, and if anyone watching this presentation on YouTube has some proposals, some suggestions from international lending, we're always open to suggestions, and we do respect a lot the very strong background lots of our shareholders have in finance and transactions, investment banking. We're always open to listen and to evaluate all the ideas for a fact. The next question comes from Jeff Sula, who is asking, have you noticed any change in farmers' attitude to trying new products given the substantial increase in grain prices and to a lesser extent, coffee and sugar? Yes, Jeff, we have noticed an increased interest from certain farmers to pay more attention to what we're doing. Also some farmers, it's an interesting negotiation, isn't it? Yeah, so we increased our price from last year to this year. It's interesting because when we talk to farmers, a lot of them aren't necessarily happy with the fact that our prices went up considerably in comparison to what they paid last year. Lots of the farmers, they have an expectation that the fluctuation wouldn't be as significant. In that context, of course, we have to remind them about, well, essentially two things. The first one, which is that everything is going up. As you said, whatever they're producing has also gone up a lot in price. The second aspect is how fertilizers, they are priced, even when they're produced locally, even when they're produced domestically, they are priced against the international commodity or in connection to the international commodity. For example, Petrobras that produces urea in Brazil, or for example, Mosaic or Yara, that produces phosphate fertilizers in Brazil. Even though it's produced in Brazil, when it comes to them for pricing their products, they don't necessarily discount the price because it was locally produced. That's a bit of the conversation we have with some of our customers and some of our potential customers. The next question comes from Chris Thompson. "Did Felipe mention the value of pre-sales orders when projecting your revenue for 2021? Did he say BRL 40 million or BRL 14 million pre-order sales in Q1 for 2021?" Do you want to answer that one, Felipe? 14. One, four. We had that of pre-orders at the end of Q1, which is pretty higher than last year, what makes us more comfortable to achieve the BRL 55 million at the end of the year. Thank you, Felipe. The next question. Thank you, Vaughn, for attending our call. Thank you for being our loyal customer in Brazil. Vaughn Cordle is asking, "How is the process to produce K Forte from extraction to storage? What is the necessary infrastructure?" It's an open pit mine. We extract the ore from the mine pit. This is transferred to our industrial facility. In our industrial facility, the product is crushed and then it's ground, we separate, so the product is of the correct fineness. The setup of this operation is what was developed with the inspiration from Cambridge University, which is what we call our Cambridge Tech, one of our technologies. It is essentially that up to the production. We store the product. We can either store it in sheds or when it's for bulk delivery, or we store it in totes or big bags, how they're known in Brazil. The second question, what's the necessary infrastructure? Of course, it's the site, it's the mine, it's the transportation link between those two. Requires a lot of electricity because of the production process. I hope I've answered your question. Next question by Jeff Sula. "Felipe mentioned that your admin headcount increased by approximately 2x to support your ramp-up in sales. How should investors think about your ability to grow sales moving forward in regards to leverage per employee?" We've always, Jeff, been very understaffed in Verde AgriTech and growing as fast as we've been, we realize often how understaffed we are in a number of areas. Trying to answer more objectively your question about how should investors think about the ability to grow sales in regards to leverage per employee. It is our expectation that as people are better trained, as the process are better designed and implemented, as we improve our systems, for example, we are setting up SAP now for the admin sector, as we're getting larger. As those types of systems, as they improve, we would expect an increase in productivity. The other important aspect here is, when we went to build our team, we had a choice between hiring very experienced people to their day-to-day activities. Let's put it this way. Very experienced people and very good people, they would completely blow up our treasury. Our costs would literally be 5x- 6x times greater than what it is in terms of admin, in terms of sales. What I'm answering now here also applies to sales. 5x- 6x for us to get very good people and very experienced people. We would be looking at 5x- 6x higher costs than what we currently have. The other alternative we have would be to hire experienced people. Not necessarily the best in class, not necessarily the best people in the market. In which case, you would get the experience, but you wouldn't get extraordinary people, let's put it this way, working for Verde AgriTech. The path we took, and I'm very pleased about the fact we've taken this path, was to hire people by their characteristics, by their personalities, by their behavioral traits, with the sort of profile we wanted for each one of the positions. When we created those profiles for each one of the positions, be it sales, marketing, admin, and when we went out and advertised those positions, for some positions we had more than 10,000 people answering all the different questions you need to create this sort of personality profile. The system would rank all of those 10,000 people according to what we had originally established, which would be the requirement we had. We would go and talk to the top three people from 10,000 personality profiles. Often what we were finding was that between those three, all of the three would be excellent. Would be phenomenal in terms of the characteristics we were looking for. Often you would have one person there who would be experienced, but would be already in a very successful career, would already be earning a significant amount of money, and would already be employed, and would only be looking to Verde AgriTech because they really believed in our purpose, really wanted to be part of what we're doing. Then the other two people who we would find would be young people. Recently graduated, or in many cases even like in the last year of university. We've essentially been able to hire a whole generation of professionals who I have no doubt, a few years down the line, will and would become, in other companies, extremely successful professionals. That is the third approach we took, which was to hire this extraordinary quality of people. Lots of them still not experienced enough, and with a cost which is significantly lower than if we had gone for the experienced personnel of similar capacity. To wrap up the answer to your question, Jeff, I understand and I really believe that the productivity and delivery from this team we've built is going to grow so much. The advances, the improvement are going to be so exponential that I do expect a significant increase in productivity, and I do expect to be able to be leveraging a lot the delivery per employee. A couple of good books on that topic, a really good one is "No Rules Rules" about the culture in Netflix. There's another good book which is ["Radical Candor"] which helps. Then, of course, there is "The Everything Store" from Jeff Bezos. I think those are three books which kind of have inspired us to go down that path. Next question by Otto. "I'm worried about logistics. What is the plan to transport the production growth?" Otto, that's an important worry. It's something we're always trying to plan ahead. We've hired a phenomenal guy who is our head of logistics. He was with a big trading company, young, thirsty guy, extraordinarily smart, and he's doing an amazing job, not just managing our current challenges, but very importantly, preparing for the sort of size we want to achieve. Part of this plan, without going into a lot of detail, is establishing relationship with a lot of transportation companies which are active in the main routes we're supplying. Another component of it is creating a robust database with independent drivers that work around that area and to the routes we're currently looking at. We have this aggressive database, and the third leg of this strategy is really using a lot of systems to increase productivity. We have some very useful systems. One thing we recently implemented, which I think is interesting to mention here, is there is a system which the first person who mentioned it to me was our Director, Michael St. Aldwyn, which allows you to get a square any place in the world, 5-by-5 meters, and that square will give you three words, which if you give to anyone, they can find precisely that square on a map. One problem we were having in the past was that a farmer to tell the transportation companies or to tell us where the farm is was very subjective. I go there, you turn right and you turn left. Google Maps wouldn't work the way you want in rural parts. As of now, every time someone purchases a product from us, one of the things we get is this specific coordinate where he or she wants the product to be delivered. That makes it easier and more cost-efficient for us to negotiate with transportation companies, but also makes the quality of our services better for the farmer who will have a higher guarantee that he will get a product delivered. Next question by Ian. "Please, can you break down the G&A, general admin expenses, which appear to be 65% up? What proportion of the increase is staff? What else is driving this increase?" A big component of that increase was bonus payment, and then some of it was the admin cost which Felipe also mentioned. That concludes. That works. There is another question from Ben. Sure. He sent through a chat. I didn't want to put you on air, but he's asking FOB against CIF now around 1/3 of the volume from 3% in 2020. What's the reason for the change, please? What are the advantages, if any? That's his question. Do you want to answer? Yes. What we are trying to do is to drive our company, especially in the low season like Q1 and Q2, for a higher volume in CIF. One of the reasons is that when it's CIF, we have 100% of the control of the exact date that we want to load the trucks, the type of products and the mix, the size of the trucks, what matters as well. It's all related to logistics, how we can manage it. Once it's CIF, it's easier for the company to handle it. What we had in the past, we did not push a lot of clients for CIF sales. One reason is that it costs us an additional cash flow for sure, because basically, most of the time with 3PLs, we must pay them between 21 to 30 days, and sometimes we do sell much more than that. What makes us two situations. Or we have on hand cash flow to support this operation, or we can go through to banks and pick up the money, anticipate this accounts receivable. This year, we are much more prepared to do this CIF. As Cristiano said, we have now a logistics area that's responsible for that, and so far it's going very well. We are close to 100% on time in full with the orders on CIF. It's going very well, and I think that's going to be the trend. Maybe I would say in the full year, maybe it's going to remain 30% CIF or even 40%-50% CIF. Thank you, Felipe. I would like to acknowledge the presence on this call of Dr. Derek Fray. What a pleasant surprise to see you here, Professor Derek Fray. It's a great honor to have you participating in our presentation. I really look forward to connecting soon with you again. Professor Derek Fray, for some of you who have been with the company for a longer period of time, he is the key man behind our innovation, behind our technology development, both in terms of inspiration and in terms of the work he carried out for us in the University of Cambridge back a few years ago. Professor Derek Fray is a Fellow of the Royal Society. He's one of the most distinguished scientists in the U.K., and no doubt one of the smartest people I've ever had the pleasure of meeting. One sentence, Professor Derek Fray, you taught me, which I probably repeat to everyone at least once every couple of days, is one thing you taught me in Cambridge, which is the importance of finding simple solutions for complex problems. I very much remember us talking, have the meeting in your office, and you turn to me and say, "Chris, I like finding simple solutions for complex problems." That has been extremely inspirational both for me and I'm sure for several people to whom I've shared this story. Thanks a lot for attending our presentation. I can see, I think there's another question. The other question by Ian. Has the last year's bonus been paid in this year's figures? I don't know. No. That was another type of incentive paid this year. The last year was paid, yes, this year, but it was booked into 2020 results. Any more questions, ladies and gentlemen, before we complete our Q&A and Q4 conversation? Jeff Sula says, "Question for Felipe. What's the average amount of time that you collect from farmers? Well, yes, the average time, we have a very significant part of the sales in 30 days, which normally we do not charge any interest rate on that. After 30 days, we do have a 1.39 interest rate per month at this point. It changed depending on the market situation and other factors. I would say that the average collect receivables is around three to four months in an average perspective. Thank you. 90 days, let's say. Thank you, Felipe. It doesn't seem to have any more questions, as always, we are equally available via email, via WhatsApp. If anyone wants to discuss anything further, it's always a pleasure communicating with you all. I would like to thank very much each one of you who attended this live presentation. I would like to thank you for watching it on YouTube. If you're watching it now on YouTube, and if you like it, please do not hesitate to share this presentation, to share our website with people who, like yourself, might be interested in joining us on our quest to improve the health of the planet and the health of everyone. Thanks a lot again, and stay safe. See you soon for the technology launch Q&A session, which by now I would expect all of you, either on YouTube to know about it already, or if you're watching it live, to have subscribed so we can have another Q&A session, which I'm looking forward to in a few days. Thank you very much. Bye-bye.