Mr. Jonathan Taylor reports

SUCRO ANNOUNCES THIRD QUARTER 2023 RESULTS, INITIAL DIVIDEND AND REVISED GUIDANCE

Sucro Ltd. has released the financial results for the three and nine months ended Sept. 30, 2023, of its wholly owned subsidiary, Sucro Holdings LLC. Sucro acquired Sucro Holdings pursuant to a corporate reorganization effective Oct. 2, 2023, and did not conduct any operations prior to that time. All amounts are shown in U.S. dollars unless otherwise noted.

Third quarter financial highlights:

• Revenues of $139.0-million and sugar deliveries of 122,243 metric tons;
• Net income of $1.98-million;
• Adjusted gross profit of $15.7-million and adjusted gross margin percentage of 11.3 per cent;
• EBITDA (earnings before interest, taxes, depreciation and amortization) of $11.3-million and adjusted EBITDA of $9.9-million;
• Adjusted gross profit per metric ton delivered of $109.95;
• Strengthened capital access through successful IPO (initial public offering) and amended credit facility;
• Declaration of an initial dividend of 10 Canadian cents per share, payable on Dec. 29, 2023, to shareholders of record as of Dec. 15, 2023.

"We are pleased to have delivered solid operational and financial performance in the third quarter, supported by our increased sugar refining capabilities in Canada and the U.S.," said Jonathan Taylor, founder and chief executive officer of Sucro. "Positive market dynamics and growth of our internal refining capacity allowed us to increase our sugar deliveries and capture strong margins on each tonne we delivered, and this led to adjusted gross profit and adjusted EBITDA levels well above our Q3 2022 performance. Also, despite the growth of our platform and ongoing inflationary pressures, we showed our ability to tightly manage costs, with our SG&A expenses declining as a percentage of sales. Looking forward, our Canada and the U.S. sugar refinery expansion initiatives remain on track, and our team remains highly motivated to execute our growth plans."

Q3 2023 investor call

The company will host a conference call on Thursday, Nov. 30, 2023, at 10 a.m. Eastern Time, during which Mr. Taylor and Stefano D'Aniello, chief financial officer, will discuss Sucro's financial performance for the third quarter ended Sept. 30, 2023.

Date:  Thursday, Nov. 30, 2023

Time:  10 a.m. ET

Conference call:  toll-free 888-664-6392; local (Greater Toronto Area) 416-764-8659 (Please dial in at least five minutes before the call begins.)

Replay:  available through Dec. 14, 2023

Replay access:  toll-free 888-390-0541; local (GTA) 416-764-8677, passcode 209169 followed by the pound key

Results from operations -- three months ended Sept. 30, 2023

For the three months ended Sept. 30, 2023, customer deliveries increased by 18.2 per cent to 122,243 metric tons, from 103,436 metric tons in 2022 during the same period, primarily due to higher sugar deliveries from the company's Hamilton and Lackawanna refineries, as the former reaches its full capacity and the latter ramps up during its first year of operations.

Adjusted EBITDA was $9.9-million for the three months ended Sept. 30, 2023, compared with $300,000 for the corresponding 2022 period, a $9.6-million increase, mainly as a result of higher adjusted gross profit ($15.7-million for the three months ended Sept. 30, 2023, compared with $4.3-million for the corresponding 2022 period). This improvement was in turn driven by higher adjusted gross profit margins (11.3 per cent compared with 5.2 per cent for the three months ended Sept. 30, 2023, and Sept. 30, 2022, respectively) obtained from the company's strategic focus on higher-margin business at its U.S. and Canada refining and wholesale operations.

EBITDA was $11.3-million for the three months ended Sept. 30, 2023, compared with $14.4-million for the corresponding quarter in fiscal 2022, a 21.6-per-cent decrease explained by the $14.0-million unrealized mark-to-market gains on commodity forward contracts in the three months ended Sept. 30, 2022, relating to the Lackawanna refinery forward contract bookings for fiscal 2023, which were recognized in 2022. This growth in the company's forward contracts in the third quarter of 2022 was not replicated in the same 2023 period since the Lackawanna refinery was already operational (incremental growth as opposed to growth from zero) and bookings for 2024 have been more gradual during fiscal 2023.

Net income for the three months ended Sept. 30, 2023, amounted to $2.0-million, a decrease of $7.1-million when compared with a net income of $9.1-million for the three months ended Sept. 30, 2022. This decrease was driven primarily by lower net unrealized results (a $12.6-million decrease), and higher selling, general and administrative (SG&A) expenses (a $2.4-million increase) and interest expense (a $3.5-million increase).

Revenue for the three months ended Sept. 30, 2023, increased by 65.5 per cent to $139.0-million from $84.0-million for the three months ended Sept. 30, 2022. This was driven primarily by higher average sugar prices during the three months ended Sept. 30, 2023 (due to market conditions), and, to a lesser extent, by increased sugar deliveries, which saw an 18.2-per-cent increase year over year, mostly as a result of increased sugar deliveries from the company's Hamilton and Lackawanna refineries, as the former reaches its full capacity and the latter ramps up during its first year of operations.

The composition of Sucro Holdings' revenue for the three-month period ended Sept. 30, 2023, and Sept. 30, 2022, is detailed in an attached table.

During the three months ended Sept. 30, 2023, Sucro Holdings' futures and options gains were $6.3-million, compared with a $1.0-million loss for the corresponding 2022 period, a $7.3-million increase relating to gains on its sugar No. 11 futures contract positions. For the same periods, tolling revenues declined by $1.1-million (86.0 per cent), primarily as a result of the shutdown of the Atlanta facility in February, 2023, which was mostly used to provide services to a third party, while warehousing revenues remained relatively flat.

The composition of Sucro Holdings' cost of sales for the three-month periods ended Sept. 30, 2023, and Sept. 30, 2022, is detailed in an attached table.

Cost of sales for the three months ended Sept. 30, 2023, was $121.9-million, an increase of $56.2-million (85.7 per cent) from $65.7-million for the three months ended Sept. 30, 2022. This increase was primarily due to higher sugar prices (44.0 per cent), higher sales volumes (18.2 per cent) and a decrease in unrealized mark-to-market gains.

Mark to market on unrealized positions was $1.4-million for the three months ended Sept. 30, 2023, compared with $14.0-million for the corresponding fiscal 2022 period. The largest driver in this reduction was unrealized mark-to-market losses on commodities forward contracts of $17.4-million in the third quarter of 2023, compared with a $12.9-million gain in 2022. While the 2022 gain was explained by a high volume of forward contract bookings for the Lackawanna refinery, the loss in 2023 is due to the effect of market changes relative to the company's U.S. positions. These losses were offset by unrealized mark-to-market gains on inventory of $23.9-million (compared with a $1.0 gain in 2022), driven by favourable market conditions in the United States and Mexico. Unrealized mark-to-market losses on futures positions were $5.1-million in the three months ended Sept. 30, 2023, compared with a gain of $100,000 in 2022, as the company cash settled favourable futures positions during the period in 2023. As at Sept. 30, 2023, Sucro Holdings' had forward positions on 995,516 metric tons of sugar, compared with 913,949 metric tons as at Sept. 30, 2022, an 8.9-per-cent increase, primarily driven by the expected higher production levels at the Lackawanna refinery in 2024.

Other factors that increased cost of sales during the three months ended Sept. 30, 2023, compared with the corresponding 2022 period, included production and processing (a $2.2-million or 23.3-per-cent increase year over year), labour (a $200,000 or 12.3-per-cent increase year over year), and overheads (a $1.4-million or 110.3-per-cent increase year over year), all of which are due to increased production volumes in the new refinery in Lackawanna, which was not in operation during most of fiscal 2022. Offsetting these increases, logistics and freight expense saw a $1.5-million or 16.9-per-cent reduction, primarily as a result of lower average inbound freight rates in 2023.

Adjusted gross profit rose by 263.6 per cent, from $4.3-million for the three months ended Sept. 30, 2022, to $15.7-million for the three months ended Sept. 30, 2023, and adjusted gross profit margin increased to 11.3 per cent for the three months ended Sept. 30, 2023 (from 5.2 per cent for the three months ended Sept. 30, 2022). This is the result of relatively higher margins on the company's physical operations across the U.S. and Canada, and the cash settlement of favourably priced supply agreements. As its North American refining operations grow and scale, Sucro Holdings expects adjusted gross profit margin to continue increasing.

The composition of Sucro Holdings' selling, general and administrative expenses for the three-month periods ended Sept. 30, 2023, and Sept. 30, 2022, is detailed in an attached table.

Sucro Holdings' selling, general and administrative expenses amounted to $7.5-million for the three months ended Sept. 30, 2023, an increase of $2.4-million (48.2 per cent) when compared with expenses of $5.1-million for the three months ended Sept. 30, 2022. As its operations continue to grow and scale, the company expects selling, general and administrative expenses as a percentage of revenue to decrease over time.

Administrative expenses, which include staff payroll, benefits and pension costs, professional fees, insurance, bank service charges, and other office expenses, increased by $1.6-million (54.2 per cent) from $3.0-million for the three months ended Sept. 30, 2022, to $4.6-million for the three months ended Sept. 30, 2023. The most significant driver of the increase in these expenses is additional personnel expenses at the newly commissioned refinery in Lackawanna, sales staff to support the company's growing sales volumes, and professional fees for legal and accounting as Sucro Holdings increases the overall size of its operations and prepared for an initial public offering via the reorganization with Sucro Ltd.

During the three months ended Sept. 30, 2023, Sucro Holdings saw an increase in its selling and distribution expenses of $600,000 or 463.4 per cent. The marketing campaigns were consistent year over year and the main reason of this increase was related to commissions paid to third parties for sugar origination.

During the three months ended Sept. 30, 2023, other operating expenses, including travel, business taxes and licences, bad debts, outside labour, and information technology (IT) expenses, amounted to $1.0-million, an increase of $100,000 (12.7 per cent) when compared with expenses of $900,000 for the three months ended Sept. 30, 2022.

Depreciation expense for Sucro Holdings' property, plant and equipment amounted to $1.1-million for the three months ended Sept. 30, 2023, an increase of $400,000 or 51.6 per cent compared with $800,000 for the three months ended Sept. 30, 2022. This increase was due to significant investments in capital assets in 2022 and into 2023, especially in the Lackawanna refinery.

For the three months ended Sept. 30, 2023, Sucro Holdings incurred no equity-based compensation expense, compared with $300,000 in fiscal 2022.

During the three months ended Sept. 30, 2023, Sucro Holdings incurred interest expense of $5.9-million, an increase of $3.5-million or 151.4 per cent when compared with interest expense of $2.3-million during the three months ended Sept. 30, 2022. The increase is a combination of increases to Sucro Holdings' overall borrowings, primarily to finance inventory and accounts receivable, but also an overall increase in the SOFR (secured overnight financing rate) by 233 basis points in the U.S. from Sept. 30, 2022, to Sept. 30, 2023, which affects Sucro's short-term financial liabilities.

Sucro Holdings' current and deferred income tax expense increased by $100,000 from $2.2-million for the three months ended Sept. 30, 2022, to $2.3-million for the three months ended Sept. 30, 2023. The company recognized $1.5-million in current income tax during the three months ended Sept. 30, 2023, owing to deductions that reduced current taxable income. Deferred tax expense of $800,000 resulted from temporary differences arising from unrealized gains on inventory and forward, futures and foreign exchange contracts, as well as from the difference between accounting and tax depreciation rates and methods of property, plant and equipment.

Results from operations -- nine months ended Sept. 30, 2023

For the nine months ended Sept. 30, 2023, customer deliveries decreased by 12.8 per cent from 436,610 metric tons in 2022 to 380,895 metric tons in 2023 over the same period in 2022, primarily due to the company's exit from low-margin local deliveries in Mexico that are unrelated to origination for its U.S. business and, to a lesser extent, decreased deliveries of organic sugar, as Sucro Holdings stayed away from large-volume FOB (free on board) sales to focus on more profitable delivered contracts in the U.S.

Adjusted EBITDA was $24.8-million for the nine months ended Sept. 30, 2023, compared with $12.0-million for the corresponding 2022 period, a 107.0-per-cent increase, mainly as a result of higher adjusted gross profit ($42.3-million for the nine months ended Sept. 30, 2023, compared with $24.5-million for the corresponding 2022 period). This improvement was in turn driven by higher adjusted gross profit margins (11.1 per cent compared with 7.1 per cent for the nine months ended Sept. 30, 2023, and Sept. 30, 2022, respectively) realized from the company's strategic focus on higher-margin business at its U.S. and Canada refining and wholesale operations. As the company's refining operations in Lackawanna grow relative to the size of its overall sales book until it achieves full operating capacity, Sucro Holdings expects margins to continue improving. Likewise, EBITDA was $59.6-million for the nine months ended Sept. 30, 2023, compared with $36.4-million for the corresponding period in fiscal 2022, a 63.5-per-cent increase, also driven both by higher adjusted gross profit and adjusted gross profit margins, as well as by unrealized mark-to-market results, which were in turn driven by unrealized mark-to-market gains on inventory relating to favourable market conditions in the U.S. and Mexico.

Net income for the nine months ended Sept. 30, 2023, amounted to $30.3-million, an increase of $10.4-million when compared with net income of $19.9-million for the nine months ended Sept. 30, 2022. This increase was driven primarily by increases in adjusted gross profit and mark-to-market gains on unrealized positions (primarily inventory positions in the U.S. and Mexico) that outpaced increases in Sucro Holdings' selling, general and administrative expenses, interest expense, and tax expense, as Sucro Holdings continued to grow in size and scale.

Revenue for the nine months ended Sept. 30, 2023, increased by 10.9 per cent to $382.3-million from $344.8-million for the nine months ended Sept. 30, 2022. Higher average sugar prices during the nine months ended Sept. 30, 2023 (due to market conditions), partially offset a decrease in volumes sold. During the nine months ended Sept. 30, 2023, Sucro Holdings' volume of sugar sold decreased by 55,715 metric tons of sugar or 12.8 per cent, which was driven by lower sales volumes in Mexico, a market where the company expects to lower its volumes of local deliveries in fiscal 2023 and thereafter, and, to a lesser extent, decreased deliveries of organic sugar, as the company stayed away from large-volume FOB sales to focus on more profitable delivered contracts in the U.S.

Revenues are anticipated to increase in the last quarter of 2023 and the full 2024 fiscal year as commissioning of the Lackawanna refinery is completed and production and optimization rates move to anticipated operating levels. Sales from the Lackawanna refinery are estimated at 61,000 metric tons of sugar in fiscal 2023 and 132,000 metric tons in fiscal 2024.

The composition of Sucro Holdings' revenue for the nine-month periods ended Sept. 30, 2023, and Sept. 30, 2022, is detailed in an attached table.

During the nine months ended Sept. 30, 2023, Sucro Holdings' futures and options gains were $2.8-million, compared with a $900,000 loss for the corresponding 2022 period, a $3.7-million increase relating to market gains on its sugar No. 11 futures contracts positions. For the same periods, tolling revenues declined by $3.0-million (73.0 per cent), primarily as a result of the shutdown of the Atlanta facility in February, 2023, which was mostly used to provide services to a third party, while warehousing revenues remained relatively flat.

The composition of Sucro Holdings' cost of sales for the nine-month periods ended Sept. 30, 2023, and Sept. 30, 2022, is detailed in the attached table.

Cost of sales increased by $10.5-million (3.6 per cent) from $294.0-million for the nine months ended Sept. 30, 2022, to $304.4-million for the nine months ended Sept. 30, 2023. Adjusted gross profit rose by 73.1 per cent from $24.5-million for the nine months ended Sept. 30, 2022, to $42.3-million for the nine months ended Sept. 30, 2023, and adjusted gross profit margin increased to 11.1 per cent for the nine months ended Sept. 30, 2023 (from 7.1 per cent for the nine months ended Sept. 30, 2022). This is the result of relatively higher margins on the company's physical operations across the U.S. and Canada, and the cash settlement of favourably priced supply agreements. As its North American refining operations grow and scale, Sucro Holdings expects adjusted gross profit margin to continue increasing.

The drivers for the increase in cost of sales during the nine months ended Sept. 30, 2023, compared with the 2022 period, included production and processing (a $15.1-million or 65.4-per-cent increase), logistics and freight (a $3.3-million or 10.5-per-cent increase), labour (a $700,000 or 16.9-per-cent increase), and overheads (a $3.8-million or 101.1-per-cent increase), all of which saw increases relating to the Lackawanna refinery's first full year of operations.

Mark-to-market gains on inventory and, to a lesser extent, commodity forward contracts drove the $35.5-million gains on unrealized mark-to-market positions for the nine months ended Sept. 30, 2023 (compared with $26.3-million for the same period in fiscal 2022). Unrealized mark-to-market gains on inventory for the nine months ended Sept. 30, 2023, were $26.0-million ($800,000 in 2022). This result was driven by favourable market conditions in the U.S. and Mexico.

During the nine months ended Sept. 30, 2023, Sucro Holdings had net unrealized mark-to-market gains on forward sugar contracts of $10.9-million, compared with $26.7-million in 2022. The mark-to-market gains on commodity forward contracts were primarily driven by higher expected margins in forward contracts booked at Sept. 30, 2023.

The composition of Sucro Holdings' selling, general and administrative expenses for the nine-month periods ended Sept. 30, 2023, and Sept. 30, 2022, is detailed in an attached table.

Sucro Holdings' selling, general and administrative expenses amounted to $23.0-million for the nine months ended Sept. 30, 2023, an increase of $5.2-million (29.2 per cent) when compared with expenses of $17.8-million for the nine months ended Sept. 30, 2022. As its operations continue to grow and scale, Sucro Holdings expects selling, general and administrative expenses as a percentage of revenue to decrease over time.

Administrative expenses, which include staff payroll, benefits and pension costs, professional fees, insurance, bank service charges, and other office expenses, were $13.8-million for the nine months ended Sept. 30, 2023, an increase of $3.5-million (34.6 per cent) from $10.2-million for the nine months ended Sept. 30, 2022. The most significant driver of the increase in these expenses is additional personnel expenses at the newly commissioned refinery in Lackawanna, additional sales staff to support the company's growing sales volumes, and professional fees for legal and accounting as Sucro Holdings increases the overall size of its operations and prepared for an initial public offering via the reorganization with Sucro Ltd.

During the nine months ended Sept. 30, 2023, Sucro Holdings saw an increase in its selling and distribution expenses of $1.4-million or 341.8 per cent from $400,000 incurred during the nine months ended Sept. 30, 2022, to $1.8-million in the nine months ended Sept. 30, 2023. The marketing campaigns were consistent year over year and the main reason of this increase was related to commissions paid to third parties for sugar origination.

During the nine months ended Sept. 30, 2023, other operating expenses, including travel, business taxes and licences, bad debts, outside labour, and IT expenses, amounted to $2.4-million, a decrease of $100,000 (5.8 per cent) when compared with expenses of $2.5-million for the nine months ended Sept. 30, 2022.

Depreciation expense for Sucro Holdings' property, plant, and equipment amounted to $3.3-million for the nine months ended Sept. 30, 2023, an increase of $1.4-million or 75.0 per cent compared with expense of $1.9-million for the nine months ended Sept. 30, 2022. This increase was due to significant investments in capital assets in 2022 and into 2023, especially in the Lackawanna refinery.

As a result of a settlement with a former employee, previously accrued equity-based compensation on unvested and cancelled restricted units was recognized, leading to a net equity-based compensation recovery of $600,000 for the nine months ended Sept. 30, 2023.

During the nine months ended Sept. 30, 2023, Sucro Holdings incurred interest expense of $15.3-million, an increase of $8.9-million or 140.2 per cent over the nine months ended Sept. 30, 2022. The increase is a combination of increases to Sucro Holdings' overall borrowings, primarily to finance inventory and accounts receivable, but also an overall increase in the SOFR by 233 basis points in the U.S. from Sept. 30, 2022, to Sept. 30, 2023, which affects interest incurred on Sucro's short-term financial liabilities.

Sucro Holdings' current and deferred income tax expense increased by $2.3-million from $8.1-million for the nine months ended Sept. 30, 2022, to $10.4-million for the nine months ended Sept. 30, 2023. The company recognized $400,000 in current income tax during the nine months ended Sept. 30, 2023, owing to deductions that reduced current taxable income. On the other hand, deferred tax expense of $10.0-million resulted from temporary differences arising from unrealized gains on inventory and forward, futures and foreign exchange contracts, as well as from the difference between accounting and tax depreciation rates of property, plant and equipment.

Declaration of initial dividend

The board of directors of Sucro today declared an initial dividend of 10 Canadian cents per subordinate voting share, payable on Dec. 29, 2023, to shareholders of record on Dec. 15, 2023. The board has also declared an equivalent dividend of $10 (Canadian) per share on the unlisted proportionate voting shares of Sucro, each of which is convertible into 100 subordinate voting shares.

The board intends to make further distributions to shareholders on a semi-annual basis, subject to available capital resources, current and anticipated cash requirements, contractual restrictions, and financing agreement covenants and solvency tests imposed by applicable corporate law, among other factors.

Revision to guidance

Sucro's final prospectus dated Oct. 19, 2023, contained EBITDA and adjusted EBITDA estimates for the year ended Dec. 31, 2023, of between $63.0-million and $70.0-million and $37-million and $41-million, respectively. While management believes the actual 2023 results will be in line with the EBITDA estimate provided, actual adjusted EBITDA results are now expected to be between $30-million and $32-million due to lower-than-expected adjusted gross profit contributions from the company's non-refining wholesale operations in the U.S. and Caribbean markets.

The company disclaims any intention, expectation, obligation or undertaking to update or revise this revised guidance whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

Award of restricted share units (RSUs)

The board of directors of Sucro has awarded 296,704 RSUs to officers of the company, under the company's omnibus equity incentive plan, who have agreed to the cancellation of an aggregate 436,739 equity appreciation rights (EARs) previously awarded under the equity participation plan of the Sucro Holdings. Under the EAR plan, as amended, holders of EARs are entitled to a cash payment from Sucro Holdings on a sale of Sucro calculated as the difference between the sale price (net of transaction costs) and the specified base valuation indicated in the applicable EAR award, if any, and on the basis of each EAR representing one subordinate voting share of Sucro. The purpose of the RSU awards is to transition equity-based compensation away from the former privately held Sucro Holdings to the new omnibus equity incentive plan of Sucro following the completion of its initial public offering on Oct. 30, 2023. No further awards of EARs will be made under the EAR plan and 356,075 EARs remain outstanding following these cancellations. The RSUs awarded will vest over a period of a minimum of one year and a maximum of two years.

About Sucro Ltd.

Sucro is a growth-oriented sugar company that operates throughout the Americas, with a primary focus on serving the North American sugar market. The company operates a highly integrated and interconnected sugar supply business, utilizing the entire sugar supply chain to service its customers. Sucro's integrated supply chain includes sourcing raw and refined sugar from countries throughout Latin America, and refined sugar from its own refineries, and delivering to customers in North America and the Caribbean. Since its inception in 2014, Sucro has achieved significant growth by creating value for customers through continuous process innovation and supply chain re-engineering. Sucro has established a broad production, sales and sourcing network throughout North America, with two cane sugar refineries and an additional value-added processing facility. The company has offices in Miami, Mexico City, Sao Paulo, Guayaquil and the port of Spain.

Non-IFRS (international financial reporting standards) and other financial measures

In this news release, reference is made to the following non-IFRS measures:

• Adjusted gross profit and adjusted gross profit margin provide an insight into the performance of the company's physical operations. The company defines adjusted gross profit as gross profit, adjusted for the effects of fair-value accounting for commodity forwards, futures (adjusting for any closed-out positions corresponding to physical settlements), foreign exchange contracts and inventory. It defines adjusted gross profit margin as adjusted gross profit divided by revenue. The most directly comparable IFRS measure for adjusted gross profit is gross profit.
• The company defines EBITDA as net income (loss) for a period, as reported, before interest, taxes, depreciation and amortization. It defines EBITDA margin as EBITDA divided by revenue. Adjusted EBITDA is EBITDA further adjusted to remove transaction costs, stock-based compensation expense, income (loss) from discontinued operations, gain (loss) on derecognition of derivative liabilities, earnings (loss) from equity investment, and the effects of fair-value accounting for commodity forwards, futures (adjusting for any closed-out positions corresponding to physical settlements), foreign exchange contracts and inventory. The company uses adjusted EBITDA as a measure of the profitability of its physical operations as it removes the effects of unrealized and mark-to-market gains and losses. It defines adjusted EBITDA margin as adjusted EBITDA divided by revenue. The most directly comparable IFRS measure for both EBITDA and adjusted EBITDA is net income.
• Return on equity measures the total return to the equityholders from the company's physical, trading and services operations. The company defines return on equity as net income for a period (annualized, if necessary) divided by total members' equity at the beginning of the period, expressed as a percentage.

Such non-IFRS financial measures are not standardized financial measures under IFRS and might not be comparable with similar financial measures disclosed by other issuers. For a reconciliation between non-IFRS measures and the most directly comparable financial measure in the company's financial statements, please refer to the other selected financial information (key performance indicators) -- non-IFRS measures section in the Q3 management's discussion and analysis (MD&A).

We seek Safe Harbor.