Target Trading São Paulo, Brazil Manager New Business Carlos C. Costa Jr. 55 11 4082 4204 Email:c.costa@targettrading.com.br

1. TARGETTRADING
TARGETTRADING “The world´s door will be open for you”
March, 2014

2. TARGETTRADING
OPERATIONAL STRUCTURE OF THE GROUP
Trading Company, stands out as a
logistic operator for import and
export procedures since 1997.
One of the three first Bonded
Warehouses in the country,
provides complete and customized
logistic services
National Distributor of Steel and
Resins
2
 600.000 m2 of bonded space, plus
40.000 m2 of covered area
 Located less than 30 km from the
port and airport of Vitoria.
 Connected to highways and
railroads
 Zero theft rate since being
established (1993)
 Information system that allows
logistic planning and management
in the Bonded Warehouse.
 National Distributor.
 Works with flat steel and
thermo-plastics resins.
 Alternative Supplier of
imported products with fixed
prices in Brazilian currency
(Reais).
 Seeks and trades special
products.
 With offices in SP, SC . RJ and
ES.
 Global Logistic Managing.
 Works with various market segments,
focusing on the understanding our
Clients` needs offering complete
solutions.
 Logistics, operational, fiscal and
financial planning.
 Managing Reports through our state-
of-art technology system. Easy
Internet and iPad access.
 16 years in the market.
 Operations of “On Behalf Of”, “By
Order” and Management.
A pioneering vision it´s TEAD Brazil's
main differential. The group now
detains the concession for part of the
cargo area of the Riberao Preto
Airport
 Vast experience in Bonded
Warehouses.
 First to obtain a Concession for
Air Cargo an airport in Brazil,
implemented within the primary
area of the “Leite Lopes” Airport
(Riberão Prêto- SP).
 Able to offer better quality and
quickness.

3. TARGETTRADING
 Inauguration of
Targets branch in
Rio de Janeiro
(RJ)
A HISTORY OF ACHIEVEMENTS
3
20 years of experience and leadership in Brazil's logistic sector
1993
 After the bonded
warehouse
concession, Silotec
was born, pioneer in
Brazil as being a
bonded area outside
the (air)ports (EADI).
1997
 Silotec , being hired by
trading companies,
obtained a logistic
knowhow resulting in
Target being founded by
one of Silotec's
shareholders.
2002 2007
 Target Trade
Ltda. becomes
Target Trading
S.A.
 3rd biggest
company of its
sector in Brazil
 15th biggest
company of
its sector in
Brasil
2009
 Regulation SP
and ES for
imports.
2004
 9th biggest
growing
company in the
import – export
sector in Brazil1
Notes: 1 As per Gazeta Mercantil Journal `s article .
2 A Tax Benefit offered by the Santa Catarina State.
2006
 Government
instauration of the
Order Operation.
 NEO was
founded
2010
 Registration in
“Benefício Pró-
Emprego” 2 (SC)
3
2012
 Received
authorization for the
construction of the
bonded airport
terminal in RIberao
Preto
2013
 Opening of TEADs
cargo area of the
Riberao Preto
Airport

4. TARGETTRADING
SECTION 1.
.
GENERAL OVERVIEW OF TARGET

5. TARGETTRADING
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 Founded in 1997, operating in the foreign trade sector
ever since. Offices and operations in the São Paulo,
Espirito Santo, Santa Catarina and Rio de Janeiro
state.
 Operates utilizing state taxes incentives called
FUNDAP (ES), INVEST (ES) and “Pró-Job” (SC) .
 Target can singlehandedly deals with the entire
import-export logistics procedures of its customers;
door-to-door, regardless of the operation complexity.
 Target is responsible for the whole process; from
the first operational contacts to the delivery of the
cargo at the customer's door in Brazil or abroad.
 Target's services is customized for best results and
covers the exchange of raw materials, products for
retail as well as special procedures such as the
importation of the whole industrial plant.
 Target has its own staff for custom clearance, dispatch
and expedition.
 In order optimize it’s resources and operations, Target
implemented the Six Sigma process improvements.
TARGET TRADING Global Service
Stands out in the commodity market
Important Customers – Big Operations
Credibility in the market as well as in governmental
entities
Owner of the bonded warehouse area Silotec.
Customized Financial and Operational Planning
GENERAL OVERVIEW

6. TARGETTRADING
SECTION 2.
GENERAL OVERVIEW OF SILOTEC

7. TARGETTRADING
7
1 mil km
INFLUENCE AREA
EADI SILOTEC - ES
Bonded Warehouse strategically located near the Port of Vitoria
STRATEGIC LOCATION
 Pioneer in Bonded Warehouse facility in
the country .
 Bonded and national warehouse area of
600.000 m2.
 Located less than 30 Km from Vitoria
airport and port, connected to highways
and railroad.
 Zero theft rate since its foundation (1993).

8. TARGETTRADING
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Information system that allows the logistic planning and management of EADI
Operational
Management
System
 Datasul EMS and HR.
 ERP information System – integrates in real time all data and processes from all areas
of the company.
 It covers from the arrival of the container to the mediation of services.
 Imports services taken for the emission of invoices.
 Easy access to our system as information is updated in real time .
Transport
Management
 Management and programming of arrival and storage of containers and cargo.
Service Control
 Registry of services, programming them and later informing their conclusion.
 Based on this data, consultations and reports, the SAC can consult and inform the
Client if a determined service has been concluded or not in real time.
Equipment
Management
Control
 Information on the piler's hour meter, mileage of vehicles, tank filling , etc, in order to
determine the costs of the equipments use and maintenance .
INTEGRATED INFORMATION SYSTEM
ERP

9. TARGETTRADING
SECTION 3.
GENERAL OVERVIEW OF NEO AND
TEAD BRASIL

10. TARGETTRADING
NEO
 NEO was created to meet a demand in the retail market, focusing in Clients that choose to buy conservative amounts in
the local market, whith fixed prices in "Real" so that they aren’t exposed to exchange rate risks and import
buracracyand delays.
 Neo’s headquaters is in the Espírito Santo state, with branches in São Paulo and Santa Catarina.
 Highly qualified and experienced team, looking for acessing imported products and the best options and solutions in
distinct markets, in order to always assure: response, quality, competitiveness and low prices
 The main segments that NEO operates are: ferrous and non-ferrous metals, construction, resin and chemical products.
 The first customs terminal operated by a private company in a primary zone of an Airport in Sao Paulo. It holds the
concession since 2012, having a large logistics network of National Distribution and investments of $ 30MM.
 Located approximately 300 km from the city of Sao Paulo-SP, in the richest country side of the state, it has a high
capacity of receiving cargo flights and posses special rooms for cargo agents and airlines.
 Private structure with modern equipment and high level of security due to it´s constant monitoring of the load. In
addition, TEAD is able to provide cameras and refrigerated vaults, as a differential treatment for special and dangerous
cargo.
TEAD BRASIL
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11. TARGETTRADING
SECTION 4.
OPERATIONS OFFERED

12. TARGETTRADING
CHARACTERISTICS OF IMPORT “BY ORDER”
 It is necessary to draw a contract linking the company`s RADAR in the Brazilian Income Revenue Service (RFB)
in order to formalizing importing procedures.
 Client, as well as Target, needs to be properly registered in the RADAR to authorizes companies to
carry out import and export procedures. The Non-Limited RADAR must applies for companies that regularly
go on foreign transactions and have good financial capacity.
 The import operation will have Target as the importer and the Client will only be mentioned in the Invoice
as Ordering Party.
 Target will be responsible for financing the operation using its own resources.
 Client won’t be able to advance resources to Target meet the payments of expenses and taxes in the
clearance process of the goods.
 Financial costs will apply only to the expenses that must be paid in advance by Target.
 Transfer of ownership of the merchandise occurs through Invoices.
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13. TARGETTRADING
CHARACTERISTICS OF IMPORT “ON BEHALF OF”
 It is necessary to draw a contract linking the companies RADAR in the Brazilian Income and Revenue Service
(RFB) in order to formalize the import procedure;
 Client and Target must be involved in the whole import operation;
 Client, as well as Target, needs to be properly registered in the RADAR to authorizes companies to
carry out import and export procedures. The Non-Limited RADAR must applies for companies that
regularly go on foreign transactions and have good financial capacity.
 Client is responsible for payment of the goods to the importer.
 Client can provide financial resources in advance for payment of costs on clearance.
 Before the transfer, the goods area accounted in the importer balance as a “third-party inventory”.
 Delivery of goods takes place through the “Shipping Note” and not as “Sales” (invoice).
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14. TARGETTRADING
CHARACTERISTICS OF “BONDED WAREHOUSE” OPERATION
 The bonded warehouse facility in the importing process allows the storage of goods in the Brazilian territory without
payment of the customs duties. Upon request importer issue a invoice to consignee to clear a specific lot of goods.
 The importing goods intended to be stored under this regime must be consigned to Target, with no exchange coverage
and those conditions must be stated on the Proforma Invoice.
 Goods, under this regime, may remain stored for a period of one year, extendable to one more year. In exceptional
cases however, an extension for one more year could be granted, taking under account the three year limit. Before
that the client must re-export the goods.
 In order to register the DI (Import Declaration) it’s necessary to issue a comercial invoice for the lot that will be custom
cleared. This Comercial Invoice must have exchange cover and payment terms. Target will appear as the importer now.
 In case the Client wishes not to clear stored goods, there is the possibility of re-exporting them back to their country of
origin. The operational procedure of re-exporting goods resembles an exportation process. The documents required:
Proforma Invoice from Target (shipment’s consignee), to be sent to the exporter, and the shipping documents (BL) that
will be sent along with goods.
 Bonded Warehouse operations allow manufacturing operations related to packing and re-packing the goods. This
includes assemblage, re-packing, maintenance and repairs.

15. TARGETTRADING
 Benchmarking and Measurement of the International Supplier’s Performance.
 Measurement of the delivery deadline of the Supplier Abroad.
 Payment terms and deadlines.
 Package quality.
 Correct issuing of documents, Invoice, packing-list, certificates and so on.
 Quality of the provided product, based on reports of non-compliance issued by the Client.
 Control of the performance of the service providers involved in the operation.
 Constant monitoring of arrival, removal and clearance of the process alongside with the Dispatchers, Freight Agents,
Transporters and Brazilian Income and Revenue Services (RFB).
 Demand of shipment instructions done alongside the Freight Agent.
 Verification of Treatments,TC4, TC6 in the air shipments.
 Check information on BL and AWB, in accordance with the Brazilian Income and Revenue Service
(RFB) `s new cargo system – Siscarga / Mantra.
 Emission of Import License and monitoring Brazilian regulatory agencies in obtaining product registration
and approval to enter Brazilian territory .
 Linking Dispatcher, checking and remittance of original documents while demanding agility in the
registration of the electronic process (SISCOMEX).
 Requisition and monitoring of the transport of cargo cleared by the RFB.
 Logistic Optimization
 Study of the viability of the consolidation of the cargo abroad, allowing the reduction of freight costs and
fixed expenditures per shipment.
 Check removal options, in order to reduce storage costs in airports and agility of clearance in primary
areas of ports and airports.
CHARACTERISTICS OF THE OUTSOURCED OPERATION VIA TARGET

16. TARGETTRADING
 Emission of reports and controls
 Information and data updated via EDI in real time allowing different options of reports and
surveys as needed.
 Access to our system for information in the goods clearance processes.
 Management of the buying process
 Constant monitoring of the suppliers abroad
 Verification of the conditions in the order confirmation and delivery date.
 Monitoring the dates and remittance of foreign exchange transactions.
 Control of payments sent by the dispatchers and other expenses involved in the import process.
 Pré-Calculation of taxes, sent by the dispatcher
 Verification of commodities duty description and coding system
(TARIFF NOMENCLATURE - NCM´s and TEC WIN).
 Link the exchange transactions contracts in the DIs , avoiding problems with Brazilian Central Bank.
 Constant search for improvements in the import process
 Fulltime dedication in the search for efficiency and excellence in all steps of the process, aiming to:
• Reduce costs
• Negotiate longer payment deadlines
• Optimize Cash Flow
• Reduction of paper work
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CHARACTERISTICS OF THE OUTSOURCED OPERATION VIA TARGET

17. TARGETTRADING
SECTION 5.
IMPORT BENEFITS

18. TARGETTRADING
FUNDAP (ES)
 The FUNDAP ES (Espirito Santo) is a program of Espirito Santo´s government created by Law 2,508, of May 22, 1970,
and regulated by Decree 163 N, of July 15, 1971, with the purpose of adding revenue to the State’s tertiary sector by
increasing and diversifying the trade interchange with foreign countries, as well as adding revenue to the States
primary and secondary sectors;
 Tax Benefits: deferral of the ICMS - during customs clearance in the moment a subsequent removal of the goods occurs
and a reduction in the calculation basis of the ICMS so the effective aliquot is 4% in the transactions between taxpayers
in the state of Espirito Santo.
 The ICMS payment will be made at the 26th day of the month right after the operations by FUNDAP sponsored
companies occur .
 Warning: In interstate operations, the use of FUNDAP will not apply when the import occurs on “On Behalf Of”
modality (see: Protocol signed between SP x ES No. 23 of 2009 and ICMS 36/2010 Agreement).
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19. TARGETTRADING
 INVEST-ES is a program developed in order to increase investments in the state of Espirito Santo that aims to
contribute to the expansion, modernization and diversification of the productive sectors of the state.
 Its benefits are deferred payment of ICMS (Excise Tax) on imported goods in the moment the goods leaves the
beneficiary´s establishment , reduction in the ICMS Calculation`s Basis when the goods leaves the beneficiary´s
establishment , designed exclusively for the Distribution Centers - CD's , resulting in a taxation of 4% as well as a
presumed credit, which is the largest discount on the basis of the ICMS calculation compared to other state
benefits.
 To take advantage [indirectly] of the benefit, the client must use a branch that is properly installed in one of our
general warehouses [SILOTEC].
 There is a need to link the companies, which will be conducted in accordance with the information from State
Registration Number of the [IE] branch, or head office, properly installed inside Silotecs warehouse; which after
analysis, the SEDES/SEFAZ will publish the link in approximately 07 [seven] working days.
INVEST (ES)
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20. TARGETTRADING
SECTION 6.
.
DIFFERENTIALS

21. TARGETTRADING
 Availability of all reports of the Group Companies in the same software, providing lower costs and allowing Client’s on
line control the whole importation process.
 Via iPad:
 Target provides, in the form of lending, an iPad to its Clients.
 Quick and easy access to reports and graphs, allowing a fast and simple visualization the stages of the
importation process as well as the performance of each stage, in real time.
 Also, for better control, alerts can be programmed to go off if a process at any point does not meet the
pre-established lead time.
 Via IPhone:
 Vast access to information on any matter of the importation process, along side extreme agility.
 Fast visualization of reports and graphs, allowing Client easily interact and obtain on line information
about its import processes.
 Via Web
 Access to more than thirty reports, with financial, logistics and accounting information available.
 Research of Invoices generated by the Invoice number, Process reference, ID, Emission date (period)
and others;
 Visualization of Billing Notes to be Paid and Detailed information on products generated by Invoice;
 Stock Consultation
 Research of Importation Process, generated by the process’ code, PO, Client Reference and others;
 Also available, reports on: Lead Time of Customs Release, Shipment, Financial, Process Closing, by
Product among others
MANAGEMENT TOOLS
Complete awareness at any time, any place.
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22. TARGETTRADING
MANAGEMENT TOOLS: IPAD
 Through Target’s app, the Client can promptly overview it’s entire importation process and measure the performance
levels in each and every step. Alerts can also be configured, to making the management even simpler.
 For an easier visualization, the color of the writing matches the SISCOMEX parametric random selection channel,
in the example all the processes went to the yellow channel.
 The Lead Time Reports are the easiest way to
verify Target’s performance.
 Through the partial and total lead times,
it’s possible to follow if the SLA is being
reached .
 In addition, if a process surpasses the
ideal lead time, it will be highlighted
(with a red arrow). To understand the
reason for the increased Lead Time, you
get more details on this process with a
simple click.
 The Process Report contains valuable
information such as the Customs Officer
who released the process, making it possible
to create performance level from them as
well. Consequently, we will be able to
estimate the average time a process in the
red channel with a certain customs` official
will take to be released, for example.

23. TARGETTRADING
MANAGEMENT TOOLS: IPAD
 The information available on the iPad is automatically updated as more information is imputed on Target’s system. This
allows the Client to follow the progress of any process before it’s conclusion
Shows the
progress
reach so far

24. TARGETTRADING
MANAGEMENT TOOLS: IPAD
 Through the Invoice Reports, you can visualize
important information that is linked to the DI
(declaration of Importation), for example the
product description and, NCM Code, DI and
Addition number.
 It also contains the usual product
information such as quantity and unitary
price.
 Information pertaining to the taxes, net cost
of the product are also accessible trough the
Invoice Report.
 A unique factor is the visualization of the
benefit value per product on the invoice,
allowing picture of the financial effect the
benefit has.
 In addition to the Reports that indicate performances, Target’s app also allows you to view and consult data on the
invoices issued to the Client

25. TARGETTRADING
MANAGEMENT TOOLS: IPAD
 The data shown in the Reports can also be visualized through graphics. For a better read the graphic statistic’s are
highlighted.

26. TARGETTRADING
MANAGEMENT TOOLS: IPHONE
 With the intent of easy even more our clients` access to information, Target app is also available for iPhone.
 With the iPad, the information available in the app is automatically fed by Target´s system, guaranteeing
Client will always be updated in real time.
 With the screen adapted to the iPhone, it´s possible to visualize all the reports and graphs completely
allowing for the same experience as provided by the iPad.
Shows the
progress until
that moment Statistics of
the process
Process
data

27. TARGETTRADING
HIGHLY QUALIFIED TEAM
Target assembles a specialized team for each Client, composed by members from each department. This team will
thoroughly understand the Client’s process and contribute to an efficient operation every step of the way.
Commercial
Responsible for
determining with
the client the
commercial
conditions,
contracts,
establishing
deadlines and
S.L.A.
Provides quick
answers about the
legal instruments
celebrated
between the
parties. Analyzes
the taxes applied
for each operation,
checking, among
others, the
existence of Tax
substitution or any
Tax reduction on
calculation `s basis
applicable to the
product, advising
the Client on
possible future
contingencies.
Represents the client
within Target, making
sure deadlines are
achieved, updating
the Client and
assisting other areas
so that the Client is
completely satisfied
and secured in the
importations done
with us.
Responsible for the
Client’s current
operations,
keeping the Client
informed at all
times and
maintaining
constant contact
with the suppliers
in order to achieve
the shortest lead
time and best
service at the same
time.
Previous analysis of the
documentation, review of
the tariff nomenclature of
the product (final decision is
the client), confection of
Import Licenses (LI) and
Importation Declarations(DI).
The customs team files for
the inspection with the
public organs in order to
remedy any doubts and
procedures within the
process in the outmost
correct and clear form,
always in keen with the legal
scope.
Responsible for
suggesting
financial
structures that
better suit the
Client’s
operation.
Analyzes and
guides the Client
in the issuing of
Invoices with the
appropriate
CFOP, as well as
the mode of
operation and
the accounting
method in
operations, such
as “On Behalf
Of” or “By
Order”.
Target
Legal / Tax
Customer
Management
Operational Customs Financial
2
Accounting
21 2 3 4 5
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28. TARGETTRADING
 Due to the unique structure of the Group, Target is able to provide complete in-house services, from the Trading
Company to the Bonded and General warehouse facility (SILOTEC). This guarantees a smooth operation with efficient
communication and management through out the importation stages.
 There is also the opportunity of opening a Distribution Center (CD) with Taylor-made infrastructure to the client inside
the facilities of the Group’s Warehouse SILOTEC.
 By opening the Client’s branch within our logistic structure, SILOTEC, while also being located in the same physical
space as the Bonded Warehouse and Distribution Center, there are no costs to remove the cargo and, at the same
time, provides higher agility in the transfer of it from one location to another, which can be done in the same day if
necessary.
 Low operational costs and easy inventory management of the opened branch.
 Own Custom Clearance Staff, generating agility and confidentiality.
 Availability of support and assistance of Target and Silotec´s employees.
 Target has an Insurance Policy with Ace Insurance Company for covering the national and international legs of the
operation, this is optional for the client. He can contracted and join our insurance policy or not.
 Reduction of cost through the use of import benefits, FUNDAP or INVEST, and consequently Cash Flow gain for the
Client.
OPERATING THROUGH VITÓRIA

29. TARGETTRADING
MAIN LONG TERM CLIENTS
Quality service resulting in loyal and selected clients
ANDRÉ BRETT