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.

Thank you for participating.

We will now results, please turn to page 9. Here, we would like to focus on the lower graph, on the lower table. The best way to see a bit degeneration of the company is by the way we did it here. and adding the effect of the results of the commodities. Here what we can see, a profit of 75 million reais, as Andrei mentioned as a highlight, adjusted a bit to year 68,235, and when we compare with last year, It was 57%, so 18% higher this year, 68%. In Q1 of last year, we had sold a farm, and this generated a result, 16 billion riyals, and this year we did not have

we had we had a field in September 2018 at 130 hectares and in July this year we delivered this year and so

We have not recorded these 130 hectares, and now we are recording that there is a cloth.

We do have measurements. Measurements.

This also added 5 million reais in results.

So it's important to say that the EBITDA generated was very

robust, and this makes us optimistic for the future.

Now, here on this page, we can see internet profits, excluding the sale of farms, if its operations exclude the sale of farms.

In this order, we always hold an extra 5,000 tons of corn. And, apart from this, all the products, especially soybean and corn, we were able to get prices 30% higher than in Q1 last year.

Also, sugarcane.

The It could have an effect on the company's results.

We're very optimistic in the future. And the price of land grows and also sugar canes.

gram of sugar generated a price purchase 9% above the price of last year. This generates a result that is very, very positive.

69 million rand.

That included 62 million. We're very optimistic. Those

or a fault in our results.

Before the decarbonization of the currencies, we all just said that we were going to have to continue to look at our eyes to the results. And now, after the start of 2021, looking at the picture, we see here we have we see the results and if we run we have relevant results we're selling the inventory of the last quarter and here we see as responsible for cash generation. Page 11.

Here we have the results.

Here we have the revenue from the sale of farms, revenue from grains, revenue from cotton, and revenue the operational results is here. And here we're getting to the quotes on this year. Here we have sale of inventory. So last year We can see the prices to date $1,500 a year.

Or, last year, $320 to $850. So, we have a significant operational result to see.

We have revenue sales, $129,000 expenses with sales. We have other revenues and rents.

Financial results here as you can see, 15,000 and the effect. Continuing here. Financial results, as I said, 15,000.

We have the cost here for here, cost of sale of farms, and the cost of sale of agricultural products. In all, every quarter, it just values according to the exchange rate and the trades of slavery. We saw a very good depreciation the amount we so we have the price of soybeans and here we see also gross profit and so these are the 15%

million reais, 75 million reais, which we see.

The other numbers of the company, we see cash, equivalent to cash, 220 million accounts receivable, which we see in the clock, short 205 million. These are accounts receivables. Here, receivables reminding you that you will receive the investment with the exception of the parent line on the farms

Here, today we have a change.

We have here circulating acids, biological acids, operations with derivatives of circulating acids here.

and non-circulating acids here on the right.

When we see viability results, there was a reduction in results as viability received net assets. And on the right hand,

We have shares at equity.

We're reminding you that we have shares in the treasury. We have the payment of dividends.

It will happen in November.

Also, suppliers.

Now, on page 13, you will see the company's debts.

It's important to mention that the amounts are in Brazilian currency, right? We can avoid It's 4.2. We have cash on the range. The average cost of the debt is 4.6%.

In all currencies. And in 2020, we had 14 million.

That's adjusted debt. Bet, bet. $171,000, right? $455,000. Three eyes. Total bet. $132,000.

Total bet.

We have here, to be made, we have long-term effects, with 30 of them, which is mature. So, unless, here, it's a million, 200 years. This, We want to lengthen these debts. We have dividend payments.

Average dividend is a little over 5 years, 4.5%. We have the mandatory dividends according to We know the dividend will be pushed in November. Page 15, please.

Here we have the net value of $2 billion cut. Here is the number of

1,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000.

As we saw, Acro is growing. We are expanding production.

And this is the potential amount. Last page, please. Final page. We have the price over here.

It's Acro 2021. this graph, you can see, okay, be the price of the year of 1935, right? And, so, the numbers that you can share, I'll share. Great

Again, I invite you to, I think, and now we can go on to the Q&A session.

Thank you, Trey. Thank you, Gustav. If you'd like to go on to the Q&A section once again, please access our website, where you can see webcasts. You can go to data, and you can go to webcasts. There it is.

Question mark, and you can send a question to the patient chat. All right.

The question?

land.

How does the company position itself? Will you acquire more land? Will you increase the amount of land bought?

Thank you, Jack. Getting used to the technology here.

again, thank you for being with us, always with very intelligent questions.

We have a great pleasure in talking to you here and being very direct.

As I always say, Agro is very resilient. Agro, we have had a period where the plan not changing the origin with the pre-chain. So, we were expecting multiples, certain multiples, and we hear, we see improvements. Now, So we're preparing the company to be aggressive. We have real estate appreciation.

We have more than 400. So that was the appreciation. So it continues.

will have the price appreciation in the last. And this is, we will always be aware of this. It's good to say, Jack, that in a year with a pandemic like last year, we were able to work on two sides.

We were able to see that and buy land through poverty.

this year. Probably this year we will be more stronger. Thank you.

Thank you. Thank you.

Find more land now?

Make sure that the production of the rice is used in the end.

Don't you need to consider these points?

We could hear all afternoon. the first one, it is a proxy of the third. General plantations, especially in the, especially in the markets, are very different. It's not a big difference between large farmers. That's 80% of their area. Last year, there was the same thing. You have 100% of the city to it. Yes, there's to act on the second part of the small harvest as we call it. Great. That's great.

Thank you. There will be a delay.

If the second part of the harvest is not seen at all, A lot of people think that this country is not a peace. It's not too gross. It's not too hard. It's not too difficult. Since we are going to put things together, we have to do it again. We have to do it again. The first time, Because the problems are not what you should be. There might be a reductionist or soybean. It's difficult to mark the impact on the future. But as we come out

say, should we just avoid that we are trying to we're all looking for a group that are not just waiting to be narrated I hope you'll of the commodity. Now, what I can tell you, we're always looking at opportunities. For example, cattle ranchers with degraded pasture, with problems in the pasture, people who are very leveraged. We're looking for good opportunities. So, maybe we will sell more than buy. Prices are attractive for selling, but we're always looking at opportunities to buy. Yes, looking at the capacity we have to transform that land. So I say once again, we're not going to buy ready land. We're not going to buy productive soybean land nor cotton. We're buying land that needs transformation, land that is not generating good results. If you have commodity going up and these land doesn't have a good production, then we will look at these opportunities. We will not buy land with high prices. So we're going to buy assets that are not generating results. And if you buy land that is generating excellent results, it doesn't make sense. You're right. To buy land that is not generating results may be a good opportunity. Now, how is the company behaving in relation to what is happening in the small harvest, second harvest? We're very conservative for the projections. We understand that every corn, all soybeans planted in the Midwest and South are land that can have corn in the second harvest. So, the numbers that we showed are conservative. We were able, on this date today, yesterday, with most of the second harvest already planted. So, soybean in the second harvest is already planted. So this enables us to say, we don't have a commitment in terms of planted area. We will see La Nina and also rain during winter to see if we increase or a pushback. But I tell you, we are conservative. We may have 2,000 less in the off-season harvests. So, we work with this range. There is a factor that is important. The harvest in January, February. That's another driver that is very important. If we have a complex harvest, then... So, in general, we're prepared. The numbers we gave you, the estimates, as I said, they are all conservative. We're realistic in the off-season harvest. So, soybean planted until October 30th, and these numbers we showed you are for soybean planted until October 30th. Perfect. Thank you, Felipe, for the question. Luciana Carvalho, Bank of Brazil. She says, congratulations for the results. Thank you for the opportunity. First question, sugarcane. Andre mentioned gains in productivity with a reduction, even with a reduction in the year. You also mentioned a harsh winter and fires that may impact. Could you give us more details of what we can expect in productivity? Will it continue? The second question, capital structure. You decreased the cost of debt from 6.2% to 4.6% in Q1. But you reduced The maturity date from 2 to 1.2 years. Is there space to improve this during 2021? What are your expectations for capital structure and leverage? Luciana, two questions. Banker's questions. Good. Yes. Let's see. The first question on sugar cane. the consequence of the productivity is due to what we have been doing in the last few years. So the company, even having a reduction in the area, will have gains in productivity. We have sugarcane plantations that have been renewed in San Jose. In the last few years in the Midwest, with the economic situation we had, we had insecurity we had insecurity in the sugar mill we were delivering we reduced plantations last year we already increased the planted area we negotiated with the sugar mill and they began to recover their situation so one depends on the other so in Marinho We have a project that is taking off. We have some projects with irrigation that are in progress, phase one, two, three, phase one was implemented. So this productivity also comes from phase one. We have phase two, phase three, which will bring more increments in productivity. So in the Northeast, productivity, we will have the same productivity in the north that we have in the Midwest and south. So here in Midwest, we close the harvest with a fantastic ATR. Gustavo mentioned the price of sugar cane. And we close the units with 150.2 kilograms of ATR per ton of sugar cane. It's a spectacular average, attractive price. Although we had part of the year with lower prices, in the Northeast, we went up, we reached at the productivity of 90 tons. To say that you're producing 90 tons per hectare in Marino is a good number. And we're still working with the materials. When you get to a mill, not all the materials you have are the right ones or ideal ones. And sugarcane, you know, sugarcane is not like a seed. So we planted places for seedlings today, and this then goes to a commercial scale. So this is what we are using to increase the amount of sugar in the Northeast. The Northeast has this tradition. No, sugarcane must be resistant, and we know this resistance and productivity are characteristics that don't go hand in hand. With sun and irrigation, we can work with less resistant types. We're doing this, it should improve even more. So sugarcane, yes, we will continue working to have more gates. You mentioned something very important. We were always transparent. We had a harsh winter in the Midwest and South, and we had an important burning of sugar cane. This reached some plantations that were ready for harvest and some that had already been harvested. In the sugar cane that was ready for harvesting, no effect. In those that we had already harvested, where we had placed fertilizer and were beginning to grow, we lost. So what are we doing? We're applying herbicide once again, an extra cost, and also nitrogenated fertilizer once again. So we already mapped this price increase. is 1.7, 1.8 million in extra costs because of the burned area. 1,300, 1,400 hectares. So answering your first question about sugar cane. Now talking about the debt structure and capital structure, I always say that we like to be sitting We don't want to be passengers. We want to drive the car. We will never put the company in a situation to sell assets to pay debt. All the effort we have made, we had an important quantum leap in the debt when we bought AgriFirm, 120 million reais, a debt. that was unpayable. Imagine they had US currency plus 12% a year. We brought this debt to Rai at 5.5% a year. So we exchanged, we did a swap in the terms of the debt with the bank, an interest in credit, and this brought leverage. We are working with financial institutions, as Gustavo said, to lengthen the profile of the debt. We want to have some debt that is efficient, but we want to be in a comfortable situation so we will only sell farms when it's good business and not sell farms to pay debts. We're always concentrated on this. We need a debt structure where with a normal year or an abnormal year, we don't want losses. and we don't want to have to sell land to pay debts. Just supplementing entry, concerning the first question, in fact, the number of tons were mentioned with this impact in the San Jose farm this year, we had productivity above the capacity of the sugar mill to receive the sugar cane. This allows us to continue with these numbers. Concerning debt, we're working. We have made a great effort. Andrey mentioned we to remind you 30% as you saw are there and as you you see if we consider their receivables if we look at the receivables we have a low debt what we mentioned here with the current price of commodities and it we We have a good productivity. This enables us to transform this into cash and this cash we're working with the banks and we want to accelerate production and generate cash. Yes, we have a lot of questions. Time is almost over. If your question is not answered, we can talk later. Our email is there. We're available to... You can contact us by email. Tatiana wants to know the credit risk of sugar mills. Do you see potential to plant more sugar cane? Well, Fabiana, an excellent question. We began the year. We wanted to know until when the sugar mills would be able to crush. We saw that there was a reduction in the capitals. The sale of ethanol and gasoline went down. Diesel oil went down. And there was a recovery. So oil is back at $45 and the exchange rate creates a buffer in the price of gas. And this allows us to have a good price for ethanol. If oil continues at these levels, and if the pandemic stabilizes, as we have seen, we will have these levels for ethanol. Sugar you are following. We saw sugar during the year going from 10 cents per pound to 14 cents per pound in the last 12 months, an important rise in the price of sugar, and this due to the frustration and problems in the production of sugar in India. So I would say I understand that the pavement capacity or the solvency of the sugar mills, today's picture is better than the picture of a year, year and a half ago. Of course, we have some groups that have leverage in dollar. And I would say that we're working with projections. These are not our projections to close The harvest ethanol and sugar at 67 cents per pound. And to begin the next harvest with these levels or even higher levels for one reason. We've talked about the south and we will have a reduction of sugar cane in the next harvest. Although the sugar mills recovered, the renovation of sugar plantations is not sufficient and you follow us Brazil being different from other commodities we're stagnated in the production of sugar cane for 10 years 580 million production is flat we will serve a lot with a lack of sugar around the world do we have doubts yes the pandemic pandemic is an exception and it reduces the consumption of sugar. We see India with problems, so we believe we will have a good year for ethanol in the next harvest. And we understand that this issue of the exchange rate is protecting the price of gas. We will have years with attractive prices. We're looking at this. We're looking at expansion in this sector, and we will work strongly We have expertise. We can deliver consistent results. And during the next few months, let's see if we can bring news in terms of expansion. So expansion, I always say, we will have expansion, diversifying risk. If you ask me, what is your dream? We have almost 2.7 million tons of sugarcane in Canada. with two creditors. We would like to increase this number three, four million, but diversifying in terms of sugar mills. Anderson from Elkin and Marciu are asking about internal return rates for the sale of farms and regions where the company intends to buy land? Sergipe, state of Sergipe, state of Alagoas? Well, I'll answer the first question about rates. We have delivered return rates around 20%. If you look at our weight average, you should expect that if the acid stays in our portfolio for a long time, rates go down. But 22% in 3 years is one. 16% in 8-10 years is also an excellent rate. And I believe this will have a good result for shareholders. We want to continue delivering similar rates. What changes? Today you don't have large plots of land to buy like we had 10 years ago. We have to buy smaller farms. And for this, we need transformation and acceleration capacity. So, the market, for example, you buy a farm at higher prices than 10 years ago, but you will buy lower amounts. You're not going to buy a farm of 30,000 hectares. There are a few available. You will buy 5,700 hectares. In this type of farm, we have a good speed of transformation. It can be ready in one and a half to two years. So this is where we believe we can still deliver attractive return rates during the years. Well, the second question, where we intend to expand. I always say that it's The frontier, the boundary is technological, not geographical. Today, we have technology and we have pressure in terms of sustainability. The great migration or the expansion should happen on pasture areas. We have 192 million hectares of pasture. There are numbers between the authorities 42, 49 million hectares of cattle raising that have a high potential for agriculture. So, yes, we're going in that direction. You mentioned the state of Sergipe, smaller farms. We looked at a few cases. It has an interesting logistics advantage. It is right next to the port. So, this is... the second closest area to the port. So we may look at this region if we find interesting units. I always say, so we're seeing where we can add value to property and get good results. This is what we will buy. Well, to conclude, some questions in terms of how you're looking at sustainability. Mr. Sosa says, What are the contingencies for fires if we're interested in participating in the sustainability area of the stock market? Excellent question. That is an enchanting question. I'd like to stay here talking about this for a long time. When we talk about sustainability, it involves the environment, social and also economic. So I will try to do this step by step. In terms of the economy, we did our IPO and the rules, the governance, this is, we did our IPO, we had to audit our numbers and present them every three months. Since 2006, 2007. So the IPO brought a maturity to the company in terms of governance. And so this is the discipline that we have. So, social, it's very good. The regions where we made transformations were very poor regions. And we said that we have to take care of the region where we're present. We were always very engaged in social projects. So we're satisfied. This is a number I will mention for the first time. We already built six municipal schools in regions where we're present. Schools with more than 250 children. We have been doing a lot in the last few years. And to celebrate everything we have done, we did something important last year. We inaugurated the Brazil Agro Institute. It is responsible for leading these projects. I always say, Ana Paula, Ana Paula, we used to do this, and now, it's not only a dream of a director? No. It's everyone's dream. The Brazil Agro Institute is alive. It has people. It is focused on social projects, on education in the communities where we are. So most of the investments are in educational projects, preparation of teachers, many good things, and the best we have as an assumption upon a policy to donate 1 to 1.5% of the company's profit every year. So we have strict control. Most of these resources are being used. And someone can say, what if you don't have profit during a certain year? We have a reserve. These are projects. long-term projects. We have an institute that works on this. And the third pillar, which is environmental, this is in our DNA. Imagine a company that transformed more than 140,000 hectares of land. We did everything. So we have nothing against us. We have a partnership with with environmental agencies. We are partners. We are certified by NGOs. There's an NGO called Onça Pintada. We're partners of this NGO and they take care of animals and in this land. So if you have it stabilized, it means that the smaller animals are also stabilized. We have this concern We have this in the company, more than one unit certified. We have many environmental policies that are very good. And if you want to know more, we have a department that focuses on the environment. We began to participate in a pioneer project in Brazil for carbon. With Sena and Bayer, we're one of the pioneer companies. So this is in our DNA. Since 2006, when we got the first licenses to develop areas, we had to be concerned about this, and we did this. So we're working with agencies, NGOs. We have partnerships. We have a lot of agreements with parks. We have units right next to some parks, and you can talk to the managers of these parks and say what we do. Our fire trucks are always working with them. We have brigade trucks where we plant, and these trucks also work and fight fires in these preservation areas. Our unit in San Jose has 14 fire trucks. So they do a follow-up. It's a robust structure. In the region, there is no group of firemen with 14 trucks. In the Midwest, we have a robust structure to fight fires in our units and also fires in preservation units. So, I tell you that the company is doing its work. We've been working on sustainability during the last few years. We're a step ahead of Brazilian agribusiness looking for solutions and also to take care of sustainability. What is missing is to work more on certifications. We do a lot of things in this area and we need more certification to go to markets that will give us better margins. So this is what is missing. We have the structure, we have the people, we have the systems designed to take care of this. Last year we obtained some good certifications. We have, for example, sustainable cotton certification. Chaparral Farm is certified in terms of responsibility. We have many good things and we can talk about this if you wish. We can talk more about this. Okay. Yes. Thank you very much, Andre, Gustavo, for your time. We'd like to thank the participants. Our investor relations department is available. Our email is ri Please send your questions and we will answer and we will continue talking. For us, it's a great joy to talk to you. We could spend a lot of time, but we have our agenda. Andrei, your final comments? Well, once again, I'd like to thank you all who stayed with us for 90 minutes. So, in the past, We had calls that didn't last an hour. Today we have 90 minutes. You can be sure that apart from all these good things, we have a team of managers that is very qualified. This is something that we take care of. We are forming new leaders. As we say, we want this to be something permanent. We have training programs. We are forming leaders. The company was certified by Great Place to Work. So we have this in our DNA, and we need to continue this. To continue, any company should have financial health and also leaders being trained. We do this all the time. So thank you very much. I would like to thank the company's team, what we brought here. Gustavo and I are only voice bearers, so there's an army of people behind us generating these results. Thank you very much, you shareholders, investors. We are committed. We will continue working to deliver consistent results. Thank you.