Institutional Presentation Mint Capital We are an investment - PowerPoint PPT Presentation

Institutional Presentation

Mint Capital We are an investment company that has, among its partners and co-investors, managers with investing experience and families with deep entrepreneurial roots and operational expertise. Our goal is to preserve and compound our partners and co-investors hard-earned capital by making high-quality, value investments with a holding mindset. To that end, we aim to reach this goal by owning a collection of great businesses, either directly or through common stock. 2 www.mintcapital.com.br

More than just financial capital Leveraging the financial, intellectual, and human capital of our families ecosystem. Investment management re-imagined Truly long-term mindset We have partners and co-investors who are We believe a long-term investment horizon is members of families with operational expertise and fundamental for value creation. Therefore, we provide a desire to continue to learn and invest. patient capital without a pre-determined time period to realize liquidity unlike traditional fund structures. More than financial resources, these members bring This way, we make investments with a true focus on industry expertise and geographical increasing their earnings power over time so that we complementarity to our network. could hold our companies into perpetuity. This goes back to what these families have always By endurance we conquer done, that is, help businesses grow successfully. Our co-investors benefit from the scale of our Without exception, all want to contribute to make structure, share deal flow, personal experiences and more businesses flourish by providing more than take part in the investment decision process, besides financial, also human and intellectual capital. acting closely in portfolio companies either through board positions or internal committees. Therefore, our We believe our structure bring advantages both to focus is not to gather assets under management but investors and invested companies who can make people with different backgrounds, experiences and decisions focused on the long term and not to find a points of view that can add value beyond simply 3 quick exit. financial capital.

Investment Philosophy We search for value We are businesses analysts, not financial analysts The only investing strategy that we know puts downside risk, We operate in the financial industry but we are not of it. We have pride in fundamentals, and entry price at the heart of the process is not following its principles and methods. Graham & Dodd Investing. That’s why we believe this philosophy, We spend time and effort to better understand businesses models and based on the purchase of bargain-priced securities and on a long its fundamentals, and not on complicated financials models as most term mindset, is the most consistent and risk-averse way to market participants. We strive to understand how a business works, how obtain good investment results. it makes makes money and how insulated it is from competition. We Independence have an owner mindset and invest our capital alongside owners as well. We value or independence and our approach, therefore, will be We focus on fundamentals, not narratives often contrarian in nature. That means we will avoid high-flyers We want to own businesses whose earnings power will likely be greater and glamour stories. Because of this, many times we will hold five and ten years from now and with which we would be happy to be positions that make other people uncomfortable. Thus, being shareholders were the market remain closed throughout this time, unconstrained in our approach is crucial so we can take regardless of the current narratives and consensus. Besides, great advantage of the most attractively priced securities, of any type companies can be bad investments if purchase price is not adequate. and size, regardless of market conditions. Hence, we will sacrifice asset growth over consistency, bargains, and an investor base As Ben Graham used to say, Mr. Market is here to who share the same philosophy serve us, not to guide us. Skin in the game We will pass an opportunity when we do not understand how a The same way we only invest in management teams with skin business works or does not meet our in the game, we invest our own savings in the same businesses 4 and investment vehicles as our co-investors.

Our Approach We focus on two primary, interrelated disciplines: participations in Listed Equities and Direct Investments (minority and coinvestments) in partnership with value-adding families and coinvestors. Direct Investments Listed Equity Participations Similarly, we purchase common stocks of publicly traded We seek controlling and non-controlling stakes in companies when the market offers us an opportunity to businesses that generate cash, earn good returns on buy good businesses at attractive prices, through a capital, and are run by outstanding managers. bottom-up, value oriented approach. Investment Criteria  Companies with long-term profitability, a stable business model and highs return on capital;  Established Niche Expertise;  Run by outstanding Entrepreneurs and Managers  In sectors with good and long-term fundamentals;  Adequate entry price (valuation). 5

Why Us Focus on Value Creation We partner with great management teams with a focus on value creation, not to seek a liquidity event Operating Expertise Co-investors who bring operational expertise and industry knowledge Legacy We want to preserve the business cultures of the companies we invest in Longevity Long term, patient capital without a pre-determined exit window Connectivity Beyond Capital, we suggest financial structures to help businesses grow and also we connect our companies with those who matter 6

Our Model Committed Mint Funds Capital  Doesnt have to invest in  Capital deployed in any any Mint Fund or Mint Funds Separate Managed (Equity(Valor), Education, Account or Fundo Excluviso  1% Management fee over (including Fixed Income) committed capital  No extra fees besides  Minimum BRL 20MM those charged by FAMILIES respective funds  Minimum BRL 20MM  Committed Capital or invested in Mint Funds of choosing  Investment team with Public and Private Equity experience sourcing and analyzing deals  Team with skin in the game and fully dedicated to the company  Participate in families Deal Flow, have priority on bookbuilding and structures with lower fees  Option, but not the obligation to invest in opportunities  Often, out of the radar opportunities  Bi-monthly investment committees with family members 7  Family members participate in board and committees of investees

Deal Sourcing Our diversified deal sourcing offers a combination of under the radar opportunities as well as more established business where we are perceived with great cultural fit. Proprietary: We actively pursue private companies through our personal connections, and by performing research and field work. Co-investors: Our members also bring breadth to our deal flow with their own networks . Outsourced: We have relationships with well-regarded Investment Banks, M&A Boutiques, and brokers. 8 www.mintcapital.com.br

Direct Investments - Case Business Description / Competitive Advantages Fundamentals Valuation Market Structure     Primary Education in brazil is Bahema project is based on Primary schools unit economics Mint acquired newly issued are very attractive, with high very fragmented and the perenization of schools shares on a capital raise at a EBITDA to free cash flow informal methodology, professors and non-demanding valuation conversion due to annual  Brazil urgently needs directors, and culture, that with shares priced at book increases in tuition, minimal improvements in its Primary together with a long-term value capex, no working capital  Education system horizon that resonates well In addition, shares priced on a needs, and low to no leverage.  Public education is weak and with school owners that want cash-to-cash basis with no  Margin expansion is highly with poor outlook. The to see their projects being goodwill over school school accretive to the bottom-line government can’t keep a taken care of for the long acquisition prices since physical space and fixed  high-quality, comprehensive term Bahema five schools acquired cost can absorb new classes or  public system Schools are local and exhibit at 4-9x EBITDA multiples student with limited increases  Primary education market is high swicthcing costs. In fact, in marginal cost  6x as large as higher learning student evasion is very low Longer study cycle (12 years) compared to higher learning (4 in Brazil and is mostly attributed to: (i)  years) Parents increasingly financial difficulties and (ii)  Parents much more reluctant to searching for better change of city change schools educational solutions  Low government dependence and interference 9 www.mintcapital.com.br Mint has had an ownership interest in Bahema since 2017

Direct Investments - Case  Since first educational investment*: +161%  2017: + 112%  2018: + 120% 10 www.mintcapital.com.br * 11/01/2019

Listed Equities Participations The portfolio is constructed with the foremost objective of weathering bad markets very well and then perform reasonably well in bull markets 11 www.mintcapital.com.br

Participations – Listed Equity 12 www.mintcapital.com.br