Slide 1: Managing the Tariff Risk
Managing the Tariff Risk Don Hill, Chairman – Sucro Limited TSXV: SUGR | OTCQB: SUGRF March 12, 2025
Slide 2: Disclaimers
DISCLAIMERS DISCLAIMERS General Matters Certain information included herein is forward-looking and based upon current assumptions and anticipated results that are subject to significant risks and uncertainties and speak only as of the date of this Presentation. Should one or more of these uncertaint
Slide 3: What is the latest tariff news?
WHAT IS THE LATEST TARIFF NEWS? “Trump partly waives 25% tariffs on Canada, Mexico until April 2” “U.S. President Donald Trump granted Canada and Mexico a partial reprieve from punishing 25-per-cent tariffs until April 2, the latest shift in a constantly changing trade policy that has left Canadian
Slide 4: What is meant by "USMCA-compliant"?
WHAT IS MEANT BY “USMCA-COMPLIANT”? "USMCA-compliant" refers to goods, services, or operations that meet the requirements set forth under the United States-Mexico-Canada Agreement (USMCA), which replaced NAFTA in 2020. Compliance with USMCA is critical for qualifying for preferential tariff treatmen
Slide 5: HTS implication for food manufacturing
HTS IMPLICATION FOR FOOD MANUFACTURING Tariff Shift (Chapter Change) Under the Harmonized Tariff Schedule (HTS) ü USMCA allows a product to qualify for tariff-free treatment if it undergoes a sufficient transformation that results in a change from one tariff classification (chapter) to another. ü Si
Slide 6: The investor's guide to making a "tariff cake"
THE INVESTOR’S GUIDE TO MAKING A “TARIFF CAKE” Eggs Flour Canola Oil Sugar Cocoa Chocolate Cake (ex. (ex. (ex. (ex. (ex. Ivory (becomes a Canada) Canada) Canada) Brazil) Coast) “Product of Canada”) Chapter Chapter Chapter Chapter Chapter 4 11 15 17 18 Chapter 19 Virtually all food products made from
Slide 7: Sucro's diversified supply for global customers
SUCRO’S DIVERSIFIED SUPPLY FOR GLOBAL CUSTOMERS CANADA Canada 16% Recognized global brands including 16% USA 10 of the 54% 15 largest USA MEXICO 55% 16% Mexico and most recognizable sugar-using ROW 22% food and beverage companies 13% in North America ROW 8% Virtually no refined sugar sold by Sucro i
Slide 8: Aspirational future volume growth
ASPIRATIONAL FUTURE VOLUME GROWTH Refinery Volumes1 1,000 1000 (000 metric tons) 900 825 950 800 675 775 700 600 500 625 500 400 325 450 SUCRO’S GOAL: 300 230 200 100 160 210 275 ~1 million MT 0 of refining volume by 2029 2023 2024e 2025e 2026e 2027e 2028e 2029e Hamilton - Current Hamilton - New Lac
Slide 9: Current and future refineries – both sides of border
CURRENT AND FUTURE REFINERIES – BOTH SIDES OF BORDER Refinery Locations • Sucro’s current refinery expansion strategy well timed for current tariff threats Operational Refinery Hamilton, Ontario • Two active refineries in both Under construction Canada and United States New Hamilton Refinery Operati
Slide 10: Sucro advantages in dealing with tariff threats
SUCRO ADVANTAGES IN DEALING WITH TARIFF THREATS Sucro customer products result in Sucro refineries material Sucro’s sales positioned to meet transformation unlikely to be home country negatively affected demand – avoid risk of tariffs US based, Sugar sourced from Lackawanna refinery BSM in Mexico al
Slide 11: 3 concurrent expansion projects to serve the North American market
3 CONCURRENT EXPANSION PROJECTS TO SERVE THE NORTH AMERICAN MARKET UNDER EXPANSION UNDER CONSTRUCTION (following construction) New Chicago area refinery Granular refinery - 2026 Projected Expansion: up to 250K MT Budgeted Cost: Phase 1 - US$20 M Lackawanna, New York Granular refinery New Hamilton re
Slide 12: Our team is finding new ways to capture value throughout the full sugar supply chain
“Our team is finding new ways to capture value throughout the full sugar supply chain, with an emphasis on investment in cost-efficient refineries that address the evolving needs of our customers. ” Jonathan Taylor, Sucro’s Founder and CEO TSXV: SUGR| OTCQB: SUGRF 12
Slide 13: TSXV: SUGR | OTCQB: SUGRF
TSXV: SUGR | OTCQB: SUGRF