Core Insights - UMeWorld Limited is advancing enzymatic biorefining solutions for renewable fuels and functional nutrition, with a focus on its Malaysia Sustainable Aviation Fuel (SAF) feedstock facility, which is transitioning into industrial execution [1][3] Group 1: Project Overview - The Malaysia SAF feedstock initiative will be managed by UMeWorld's newly formed subsidiary, Verdant Sustainable Fuel Sdn. Bhd., incorporated on January 16, 2026 [2][7] - The facility aims to supply SAF-ready renewable fuel intermediates to refiners and SAF aggregators, addressing the global aviation industry's feedstock constraints [1][3] Group 2: Technological Advantage - UMeWorld's platform is designed to convert difficult-to-process waste lipids into renewable fuel intermediates, improving compatibility with existing refinery systems [4][5] - The technology enables the processing of high-acidity and impurity-rich waste oils, which traditional refining methods struggle to handle, thus reducing operational costs [3][4] Group 3: Economic and Strategic Outlook - The facility is engineered to meet European Union ReFuelEU Aviation carbon-intensity thresholds, with an initial capacity of approximately 10,000 metric tonnes per year [6] - UMeWorld's strategy emphasizes scalable, capital-efficient industrial biofuel infrastructure, aiming to create long-term shareholder value through operational efficiency and cost discipline [8]

Summary of Key Points from Citi Research Call Industry Overview - The report focuses on the **Global Energy** sector, particularly the **upstream investment** outlook for 2026, indicating an improving appetite for investment despite lingering crude price risks [4][5]. Global Upstream Spending Outlook - **Total Global Upstream Spending** is projected as follows (in billion USD): - 2025E: 247 - 2026E: 242 - 2027E: 247 - Notable changes: 2026 is expected to see a **2% decrease** compared to 2025, but a **2% increase** in 2027 compared to 2026 [5]. Regional Insights - **China**: Expected spending remains stable at **57 billion** for both 2026 and 2025, with a **3% increase** in 2027. - **Latin America**: Anticipated growth of **5%** from 2025 to 2026, reaching **28 billion**. - **Middle East/North Africa**: Slight decrease of **1%** in 2026, maintaining **84 billion**. - **Asia (Other) & Australia**: A significant drop of **27%** in 2026, down to **11 billion**. - **International Oil Companies (IOCs)**: Expected to decrease spending by **2%** in 2026, maintaining **61 billion** [5]. U.S. Market Insights - The U.S. shale oil volumes are highly dependent on oil prices, with limited swing potential of a few hundred thousand barrels per day [14]. - The Delaware basin has seen a sharp drop in productivity, while other major basins show mixed results [14]. Brazil's Oil Production - Brazil's oil production is expected to increase due to a pipeline of new Floating Production Storage and Offloading (FPSO) units, with Petrobras accounting for approximately **64%** of Brazil's total oil and gas production [15][21]. - Underinvestment in exploration is eroding reserve replacement, despite ongoing production growth [22]. Middle East and North Africa (MENA) Capital Expenditure - MENA capital expenditure is set to peak next year, with Saudi Arabia leading in capital expenditure, particularly in the Jafurah shale project [25]. - The UAE is increasing its midstream and LNG investments, while Qatar continues steady expansion [25]. LNG Market Dynamics - The U.S. is expected to add **50%** of new global LNG capacity, potentially absorbing most of the oversupply impact by 2030 [30]. - An estimated **6 billion cubic feet per day (bcfd)** of global oversupply is anticipated by 2030, with the U.S. absorbing a significant share [31]. - LNG supply is expected to exceed **35 bcfd** of capacity by 2030, but pricing may suffer as a result [32]. Refining Capacity and Valuations - Global refining capacity is set to rise, particularly in Asia, India, and the Middle East, while closures are expected in Europe and the U.S. [51]. - Current valuations in the refining sector are around historical averages, with FY26 estimates projected to be **70% higher** year-over-year [53]. Renewable Energy Insights - Proposed changes to renewable fuel volume obligations by the EPA could lead to higher Renewable Identification Number (RIN) pricing, with a significant increase in biomass-based diesel requirements [59]. Conclusion - The report indicates a cautious optimism in the energy sector, with investment opportunities in upstream oil and gas, particularly in regions like Brazil and the Middle East, while also highlighting potential risks associated with pricing and oversupply in the LNG market [4][5][25][31].

Financial Data and Key Metrics Changes - For Q2 2025, the company reported a net loss of $72.2 million or $1.09 per share, compared to a loss of $24.4 million or $0.38 per share in Q2 2024, reflecting a significant increase in losses [16][19] - Revenue for the quarter was $552.8 million, down 10.7% year-over-year, primarily due to exiting ethanol marketing and placing the Fairmont ethanol asset on care and maintenance [18][19] - Adjusted EBITDA for Q2 2025 was $16.4 million, compared to $5 million in Q2 2024, indicating improved operational performance despite the overall revenue decline [19] Business Line Data and Key Metrics Changes - The company has focused on core operations and has executed several non-core asset sales, including the GP Ferrelson joint venture, which has improved liquidity and operational focus [12][13] - The operational execution has led to 99% capacity utilization across the fleet of operating assets, with the highest ethanol yields in company history [24][26] Market Data and Key Metrics Changes - The market has seen improvements due to strong ethanol exports and supportive policies regarding renewable volume obligations, which have expanded ethanol crush margins [29][30] - The company is currently 65% crushed for Q3, indicating strong operational performance and market conditions [29][100] Company Strategy and Development Direction - The company is narrowing its focus to core operations and enhancing profitability through a carbon strategy, with significant progress in constructing CCS infrastructure [9][10] - The recent legislation, including the One Big Beautiful Bill Act, has extended the 45Z clean fuel production tax credit through 2029, positively impacting the company's strategic investments [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to improve profitability and cash flows, particularly with the anticipated startup of carbon monetization in Q4 2025 [33][39] - The company expects to achieve an annualized EBITDA contribution of over $150 million from its decarbonization strategy by 2026 [12][49] Other Important Information - The company has successfully extended the maturity of its junior mezzanine notes and is evaluating various financing solutions to support long-term growth [14][15] - Continuous improvement initiatives have led to a $50 million cost reduction target being met, with further efficiencies being identified [12][34] Q&A Session All Questions and Answers Question: Can you help frame the EBITDA potential in the back half of the year and into 2026? - Management indicated a stronger EBITDA margin outlook supported by rising corn oil prices and strong ethanol exports, with carbon monetization expected to contribute $20-25 million in Q4 [39] Question: What was the thought process behind the sale of the stake in the Darrelson JV? - The asset was deemed non-core, and data-driven decisions indicated it was sensible to exit at this time [41][42] Question: Can you clarify cash flows and the impact of RIN sales? - The $22.6 million from RIN sales was included in operating cash, and the proceeds from the Darrelson sale were collected in July, contributing positively to Q3 cash flow [46][47] Question: What is the expected impact of the 45Z credits? - The carbon opportunity has increased to $150 million for 2026 due to favorable policy changes, with all plants expected to qualify for the 45Z tax credits [49][51] Question: How should investors think about the capital structure and cash flows from carbon monetization? - Significant cash flows from carbon monetization are expected to accrue directly to the company, providing free cash flows for capital allocation [55][58] Question: What is the current state of the export market? - The export market is strong, with projections to reach 2.1 billion gallons, supported by increased demand from Canada, India, and the EU [108][110]

INVESTOR DAY BRAZIL 2 0 2 5 Opportunity | Foundation | Growth WELCOME BEM-VINDOS Forward-Looking Statements This presentation and accompanying materials may include forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "forecast," "guidance," "project," "target," "outlook," "prospects," "expect," "estimate," "will," "goal," "plan," "anticipate," "intend," "predict," "b ...