Brasilagro Brazilian Agric Real Estate Co Sponsored ADR (Brazil)

Thank you very much once again for participating. It's a pleasure to announce new results. Q1 2021. This quarter finished on September 30th, 2020. Today, we have here with us myself, Elisa from Investor Relations, Mr. Andrei Guillemot, our chairman, and Mr. Gustavo Lopez, our CFO, and Investor Relations Director. First, we will have a presentation on results earnings, and then we will have a Q&A session for investors and analysts. We are transmitting live on YouTube. If you have questions, please access our website, www.brazil-agro.com, and please access webcast212021, then you can join the platform. Please fill out your name and then send the question. If you have any difficulties, there is a support button on the bottom right, and you can get in touch with a technician to help you. The presentation is available for download on this platform and also on our website. If you have any difficulty, please get in touch with us by email, ri at brazil-agro.com. Before we begin, I would like to mention that any declarations that may be made during this webinar concerning business perspectives of Brazil Agro Projections, operational goals, financial goals, are based on beliefs and assumptions of the company's board and on information currently available. They involve risks and certainties because they refer to future events and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions, and other operational factors may affect the future performance of Brasilandra and lead to results that may differ. So, having said this, I would like to pass the floor to our chairman, Mr. André Guillemin. Sir, you have the floor. Thank you, Elisa. I would like to thank all the participants. It's very gratifying to be here with you again, talking a little about the company in Q1 2021. We're very proud due to some very good results. And The market is in a very different situation with a pandemic, political uncertainties. We have many things happening. But I believe that agribusiness in Brazil has been very resilient, has delivered consistent results, and this is what we will show to you. I always say that agribusiness, or better, the pandemic generated in civil society is the perception of the importance of agribusiness. We can stay at home because of agribusiness that guaranteed our lives. And here, we always had two concerns, very intrinsic to our day-to-day work, which were to guarantee people's lives, people's safety, and also guarantee our operations. It has been a year, the beginning of 2021, and the beginning of Q1 have been complex times, but we are persistent, we are humble, we're learning a lot with this, and here it's very good. I believe this is the second or third webinar in this format, so the experience digital acceleration that we're seeing would take decades in active business. So that was a positive result that the pandemic brought. We've seen much more digitalization. So let's see page one, where page two were the highlights. I would like to mention some very relevant highlights. We had Q1 with a net revenue of $229 million. This represented and represents a net profit of $75.7 million, and adjusted a bit to $68.2 million. I believe it's a very robust quarter. We will see that most of these results come from operational results, very little from real estate. So this shows us that the company with real estate and operations has always met the expectations of investors. In Q1, we have estimates for the harvest. 2021, 2.6 million tons of sugarcane grains and cotton, 154,000 hectares in production, Then we will go into detail about this number later. But it's important to say year after year, the company is increasing the productive area in spite of selling assets. So the combination of this strategy, real estate and operations, guarantees this growth, has guaranteed the expressive growth in production. And also we have real estate that is very important. The combination of these two strategies We are the only company that does this in an effective way. We have in our DNA the capacity to deliver operational results and also robust real estate results. So this differentiates us from the market. To celebrate last year, which finished on June 30, we brought last month to the general meeting the approval of dividends worth $42 million. representing 0.71 cents per share. This will be paid on October 20th. We have the meeting on October 12th, and we are bringing you the information about these payments in the next few days. Next page, I talked about our concern with COVID, coronavirus. We have worked hard. We have worked in a remote way. The company was already getting ready for a home office or work at home, but not that strongly. So we were able to work at home and guarantee these results we are bringing to you. The adoption of many measures, we mentioned this in the last meeting at the beginning of the year. Our concern was the delivery of the harvest. Then we said, how will We crushed sugarcane, ethanol, and we saw that things worked out. And agro in Brazil, with its capacity, resilience, and characteristic of being decentralized, has overcome the problems of the pandemic. Contingency plans continue. We're very concerned because now, in the first calls, we said we wanted to guarantee the harvest. Now, We are concerned we're ending the harvest of sugarcane, and we began to plant the next harvest in some states. It's pretty much advanced, and normally all the operations have begun to plant up to close to Midwest, more advanced. Not due to a little late, but this is what we normally have in these regions. Later on, we did clarify... the climate conditions during the year. At the bottom, we see what happened with commodities, soybean, since a couple of years ago. Now we have an exponential growth of the price. Next page, please. On the next page, I believe here, I mention on the first graph on the left, the growth of the planted area, cultivated areas. So we were able, in spite of selling land, in spite of selling land, we maintained the growth of cultivated area. When you compare 1819 and 1920, 135, 153, and now 155,000. So here are two facts that happened during our harvest 1920. The sale of some areas in the state of Bahia, removing 3,000 hectares from production. These were sold. And we also had a renovation of a lease contract in Mato Grosso. It was not renewed. This also removed 7,500 hectares. In spite of the sale, in spite of losing 10,000 hectares of production, we still have positive numbers year after year. Why? Because of our capacity to transform new areas to add new areas to the productive area of the company, generating operational results and also price appreciation. On the right, we have the breakdown of the cultures, the crops. You can see soybean going from 54 to 59. Corn, roughly the same number, small reduction in one of the harvests. This is due to the lease in Mato Grosso that we did not renovate. We also see corn and also beans, important crop beans. We have a production of beans for the domestic market. Last year, we exported beans for the first time to India. So beans from Mato Grosso are going directly for consumers in 60-kilogram bags to India. So apart from transforming, apart from generating value for shareholders, the appreciation of the price of land, we are also, with our products, bringing commodities and high-value-added products. Sugar cane, this graph is very good. We see a reduction in the planted area, but an increase in production. It's good to talk about this. Later on, we will see what is happening with our production, productivity. Productivity has grown in an expressive way, which enables us to have a smaller area with sugar cane and being able to plant other crops in there. Also, we see cattle raising. I always said that cattle raising is the transitory activity that we tried to demobilize in the last few months of some operations with cattle. We continue with other areas with cattle. Cotton, this year, we are planting cotton. Not very much, but we're learning with these results. We had a harvest for cotton with a productivity of 310 years, and this enables us to trust in this and increase. And we have the other crops. Most of them are other crops. And some of our areas that are leased to third parties. The objective is to capitalize even more our land. Those who lease our land are potential buyers of this land in the future. This is the graph that shows, once again, here on this graph, we have product production numbers. So soybean 160,000 tons to 185,000 tons in the next campaign. Corn from 41 to 49,000 tons, also the second harvest of corn. the lease in Matagosnet was not renewed, 4,000 hectares, 4,000 hectares of corn. So this is due to the reduction. Beans, 2.3 thousand tons of beans, and 3.3 thousand tons of beans in the second harvest. Then, cotton, the reduction, One of the reasons is planted area and also productivity. We always prepare a budget which is conservative to avoid problems when we deliver results. Well, in summary, total grains and content produced, we have 322,000 tons, now 345,000 tons, which enables the company to be a large player. strong player. Page 6, here I go into some detail, especially cattle raising. I believe you're tired of hearing me. For us, cattle raising is a transitory activity, and even being transitory in the last year, it generated an expressive result. We understand that it can mitigate the volatility of operational results, and this is what we see. As I said, we have maintained our projection of 15,000 heads of cattle at the next harvest. We already had 21,000, 22,000 heads of cattle. We had a reduction due to demobilization and the sale of Padenda Chateau Basque. The pasture area, we decreased harvest after harvest, and this shows the demobilization of Chateau Basque Farm. We reduced from 13,000 to 10,000 hectares with cattle raising, and we have an increase of GMD. We know that Chateaubriand was a farm where we had lower numbers than in the farming. We have an increased GMD gain of weight due to having a more profitable operation. Next page is a great highlight of the company's We're proud of announcing this to you. I always say that our commitment, we try to deliver in a consistent way. Three years ago, when we said we were beginning a project, that would be very challenging with very low productivity. We began to work for a year, 57,000 tons of sugar cane, which is what we had. And now, We're closing the harvest with almost 90 tons here. Later on, we will show this in detail. This allows us to be an important player with 91 tons. We had, at the beginning of the year, a lot of tension in sugar cane, a tremendous challenge to the price of ethanol. When you look at the price of ethanol, it arrived at $1,300 a liter. and today it's 2,400. So, in the beginning, we tried to preserve cash. We reduced the plantation, but now the productivity has been very good, well above what we have estimated the productivity of ethanol, and this allows us to be an important player.

Area harvest, we want to harvest 25,000 hectares until now.

Until now in September, we already harvested 19. These numbers are from September. We have the harvest in October, November, especially in Marrakech, in the north of the country and in the Midwest. Midwest has already finished the harvest. Production in the last harvest, we had a production of 1.7, now 2,200, an impressive increase. And in these months, We had an important recovery of prices. The third graph is very interesting. Average productivity of the company in spite of having growth in production. This growth comes basically, this is nice to announce, with increases in productivity. It is not due to a larger area. The area is getting smaller, and we're having an increase in productivity and production. Our operations are large. We are large providers of sugar paint, sugar mills, and we have, apart from a very productive culture for Brazilian standards, we have a premium, which is the prices of palm. So this allows us to have a very attractive product and consistent delivery of results. Next page. I would like to talk about the first slide where we talk about soybean, the harvest, 2000 and 2021. And I say once again, the company is always making efforts to guarantee the margin. The year began in July 1st, so we're always looking at the price of our commodity, our inputs. So we have, on the current date, 66% of the soybean harvest that we are planting now already sold and sold at these prices, $9.33 a bushel, and we have the exchange rate, 5 reais and 23 cents. We began to sell soybean at the beginning of the year, even before the exchange rate went up. So it's important to say that We have a very conservative situation. We want to guarantee the march that we committed ourselves to. Then we have corn, 2019-2020. We see here 145,000 tons, 100% sold. And in 2021, we have a volume of corn committed, 60,000 tons already, 45% coverage. Everyone, when we look at the picture of three, four months ago, we see an important demand for meat. We knew that corn would have a greater upside than soybean. We were more conservative in the corn. And we see that corn recovered a lot. And we will have this production to sell at attractive prices from now on. Cotton. which represents very little of our billing, but an important price. In the last harvest, we had these levels of prices. This is dollar pounds, and in this harvest, we have a projection 76% already sold at the price of 65 cents per pound, and also the exchange rate already guaranteed. So this is an overview of our position for commodities. Now I'd like to pass the floor to Gustavo, our investor relations and CFO of the company. He will talk about the accounting numbers and also the results. Gustavo, you have the floor.