Presentation of Ranch Farm in The Pinhão

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PRESENTATION OF RANCH FARM IN THE PINHÃO

RONCÃO AREA

Property Description:
“Adega da Quinta” produces the wines of the two farms.

The winery's production capacity is around 1 million bottles of 0.75l.

The objective is, of course, to increase production until the winery's capacity is reached, which
is around 2 million, and with full automation, the capacity could double.

From what has been said, in order to reach the winery's capacity, it is necessary to buy grapes
from neighboring producers, that is, in the Vale do Rio Pinhão and in Roncão, where very good
grapes can be purchased for the production of cheaper PORTS and DOC's of level 1.

This economic strategy is followed by the largest producers, such as Taylor or Symington.
These producers, when the capacity of their cellars is exhausted, with their own and purchased
grapes, and they still have a market to supply, they buy wine in bulk.

There is the possibility, after the end of vinyfication, to use fermentation vats as “stockage”.
We can conclude that there is more than enough storage capacity for the wine that can be
produced.

Main Characteristics:
The Quinta has more than 1 million euros in stock at cost.

Note: In the cellar or in the storage or pumps we use 316 stainless steel and not 304 stainless
steel, generally used, because it is much cheaper. Our preference is to avoid contamination of
wines with heavy metals.

PLUS FEATURE: The Quinta has a hotel that has been rated four stars. It has several double
rooms and catering. It works all year round, although there is a huge difference in demand
between the high and low seasons.

This is an oenological hotel, where wine tastings and other oenological events are held. As a
result, the wines that are served in the restaurant are only those produced in the Adega da
Quinta.

It is planned to create low season events, in order to increase revenue this season.

The tourist area, in addition to the hotel, has a pavilion with space for events such as company
meetings, baptisms or weddings for up to 100 people, two swimming pools, one for adults and
one for children and the respective changing rooms.
The economic analyzes give an indication of operating conditions with an excellent
competitiveness than we give two examples where the necessary manpower is important.

The operation of the Cellar requires a specialized technician in the laboratory and one to three
workers in the operation in the Cellar. There are new cellars, designed by specialist architects,
with a capacity identical to that of this asset, but which require more than twenty workers to
operate, a scenario that is not the one of this Quinta, with very low costs and high
productivity.

The operation of the hotel requires a maximum of six specialized workers, while hotels of the
same level and type in the Douro require much more manpower to function within the
requirements of their classification.

In 2020, the Douro Region, with 12 companies obtaining “Highly Recommended” wines, was
the best classified. The Quinta competed with two wines and both were classified as “Highly
Recommended”.

In PORT Wines, the tasting had the same characteristics, but, evidently, it only covered the
DOURO and was open, only to VINTAGE wines and on top of that “MONO-QUINTA” to avoid,
as far as possible, competitors presenting a blend of wines from other producers, but with
little or nothing of their own.

We attach great importance to this test because only those who have good raw materials, a
cellar with maximum extraction capacity and competent technicians can be classified well in
this test.

Everyone from the DOURO participated. 40 VINTAGES were tried.

There was only one excellent one that was this Quinta.

All the vineyards, in the two farms, are category A. The orographic characteristics and the
planted varieties (the five defined as superior among the more than one hundred existing in
the Douro) allow the production of grapes with unique quality for the production of the best
Douro wines. and Porto.

CONCLUSION:
The Quinta is prepared in terms of production and storage capacity to produce very large
quantities of Port Wine. This production capacity is proven because for several years the
Founder sold these quantities to the LVMH group in France, owner of the DFS group, which has
free shop shops and galleries around the world.

The Quinta has the advantage of being licensed to buy grapes for Port Wine and table wines
without limit. It is also licensed to buy any quality of Port and table wines that it can bottle and
sell to any market. These rights are obtained on the basis of the minimum stocks you
undertake to maintain.
The properties are located in the Vintage Valley, the only place in the Douro where Vintage
Wines can be produced every year. The Quinta is surrounded by properties of the highest
prestige.

The benefit as it varies from year to year and for centuries has been defined before all harvests
between producers and exporting firms. These amounts vary with market stock levels and
sales projections. Last year, a total of 38,715 liters was allocated to this Quinta.

It doesn't matter too much in this case because they don't sell grapes. All the grapes are
transformed into wine that is later bottled, as it is the best way to value the product.

As a result, neither the variations in the annual benefit nor the production of grapes has an
influence on the annual turnover because they buy grapes and wines from producers selected
according to their needs.

I think it is important to emphasize that the owners are not selling a farm by the square meter,
but a product of extreme quality and with enormous potential for growth.

By Sérgio Medeiros
IMPORTANT NOTE: This document is extremely confidential and can NOT be shared
with third parties.

This document serves only for the purpose of the business and can not be promoted or
advertised.

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