2022 Fiscal Year Report

Dear Investor,

The fiscal year for cattle ranching concluded on the June 30th, 2022. This report includes a summary of our activities at La Pradera as well as the relevant advances for the Finka Token. Most importantly, this report highlights the NOR generation on behalf of our token-holders for the third consecutive year, meaning that we have once again successfully delivered on our promises with solid fundamentals and tangible results. 

The region experienced the worst drought of the last 30 years with rainfall for 2022 at 35% of the thirty year average. While we took all the necessary measures to mitigate the effect of the dry season, it had impact on the performance of the ranch. 

LA PRADERA 

We registered the weaning of 1067 calves during 2022. This figure is slightly lower than the previous year due to the severe drought.  This past year, the herd management was also a challenge under very dry conditions during the year. Thankfully, our previous infrastructure improvements and paddock subdivisions allowed for effective herd rotation and efficient grass consumption. Our animal nutrition costs increased when compared to the previous year. 

The Brangus herd improvement at La Pradera, in agreement with Tres Cruces, the leading Brangus breed producer in Argentina, was a success. We welcomed 27 Brangus calves last September. Our Brangus program was further recognized when we achieved the highest price per Kg during the Brangus auction (video) in the month of April and were awarded a prize of 50 embryos to continue with our plans. 

La Pradera received the certification as an Export Certified ranch after completing all the requirements and inspections by the relevant authorities. This is a significant accomplishment, that positions La Pradera among the few export certified operations which will represent premium pricing and quality positioning for the future. 

In line with our corporate policies, we are pleased to report that our operations are fully compliant to the highest ESG standards. Environmentally, we rely on naturally grown grass, we only use natural water sources and our free-range animals feed only on natural grass off the ground. Except for the vaccines required in compliance to sanitary regulations, our herd does not receive feed supplements, antibiotics or any other growth stimulants. Lastly, as we improve our ranching operations, our infrastructure is increasingly powered by solar energy. 

Our workers receive all labor benefits, health insurance, housing & catering, and are provided with work clothing. We are a good neighbor within our vicinity and the La Pradera operations are in good standing in the Cattle Ranching Association of San Ignacio de Velasco in Santa Cruz, Bolivia. 

Finally, in compliance with the sanitary policies for the prevention for Foot and Mouth Disease (FMD) and for Bovine Spongiform Encephalopathy (BSE), all our cattle transactions and animal transfers are individually registered and approved.  

FINKA TOKEN 

2022 marks the consolidation of the Finka Token as the pioneer digital security that converges a productive activity with crypto finance based on blockchain. The Finka Token team has been focused on the distribution efforts in an environment lacking infrastructure for efficient distribution, trading and settlement. 

As reported before, CV VC, the premier venture capital firm in the Crypto Valley, invested in the Finka Token driven by the financial impact resulting from leveraging blockchain technology for innovation in the financial markets. By eliminating intermediaries and reducing transactional friction, the Finka Token represents a template for financial inclusion, the democratisation of capital and the reduction of barriers for cross border capital flows. 

The Finka Token is recognized as a pioneer asset based security token which evolved from concept to issuance in a fully compliant and professional process supported by the best service providers in the Crypto Valley. The mass distribution of our token has been limited by the systemic reality that there are no security token exchanges or approved marketplaces, resulting in the lack of a secondary market, liquidity and distribution channels.  

As a pioneer digital asset, we have continued our efforts to contribute to the development of the necessary market infrastructure for trading, settlement and custody, similar to that existing for non-digital assets. Within our distribution efforts, during the year, we advanced negotiations with Sygnum Bank AG, Taurus aG, Token City, Token, IXSwap and FTX. We are confident that these efforts will be fruitful in the future as the market develops and we are poised to be one of the prominent digital assets representing real returns and value. Bitcoin Suisse AG, a leading financial institution in the crypto space, is to become the preferred custodian for Finka Token. 

The Finka Token was featured as a case study by Bitcoin Suisse AG and Inacta AG in a document titled “How to Tokenize a Cattle Ranch” which was distributed widely on social media. This recognition will be followed by a webinar in the coming months. 

2022 NET OPERATING REVENUE - NOR 

The following table summarizes the financial results for the Fiscal Year 20221: and the corresponding NOR due to our token holders registered as of June 30, 2022. 

The 2022 NOR of CHF 0.0443 per token represents a return of 4.45% pa and is expected to be paid once the external audit is completed and we receive the report from our Auditors. Furthermore, the NOR for 2022 represents an increase of 16% as compared to the previous year in line with our optimization plans. As mentioned before, by effectively paying the NOR for 2022, we are delivering financial results to our Finka Token investors for the third year in a row. 

Note: The External Auditor’s with their report is expected to be ready at the end of August 2022 

Dear investors, we are very proud to stand out as one of the few digital assets representing return to our investors in the midst of the crypto winter, where asset values have dropped significantly. We are convinced that the future of finance will follow our steps of leveraging blockchain technology on tangible earning assets such as the Finka Token with its revenue generating cattle herd.

We thank you for your trust and we look forward to another year of increased production, sustainable operations and financial inclusion. 

I would also like to thank our service providers, our financial advisor as well as to the whole team at La Pradera and Finka. A special mention goes to thank Pablo, Marcial and Jose Daniel for their dedication, leadership and long hours to make this happen. 

I hope you share in our excitement for ending another productive year fulfilling our promises. We hope that you and your families stay healthy and safe. 

 Sincerely,

Carlos H. Fernandez Mazzi Founding Partner
Finka GmbH