Brasilagro Brazilian Agric Real Estate Co Sponsored ADR (Brazil)

Good morning.

We would like to begin our conference call for the earnings. of the full year 2022-2023, which ended on June 30. Thank you to all the participants. On our side, we have André Guillaumont, our chairman CEO, Gustavo Lopes, our CFO and investor relations director, and I am Ana Paula Zerbinati. I'm head of investor relations and capital markets. Today, we began the call at a different time. And also we have holidays tomorrow. And you have access to English version. We have simultaneous translation in progress in English. Please send your questions through the Zoom or at the end. So I would like to pass the floor to Andrei. And we'd like to begin our conference call. Thank you. Thank you, Ana. Thank you to all who are with us. And it's even looking like a TV show here, but excellent. It's very good to be here every quarter. Once again, we're with you. And to close the year, we will talk about the challenges we had during this year and the things that we did right, the things where we had problems. So it's good to see. So we want always to have transparency and we want to have your trust. And also here, bringing, as I always say, more and more trying to give you good information about agriculture. Now we have more companies doing a good job as we do and contributing to reduce the asymmetry in a sector that is so strong, so booming in Brazil. representing 27, 28% of the GDP of Brazil. And we have less than 10 companies in the stock market, listed in the stock market. So we want to take advantage of these opportunities with you. So going straight to the point, what we have in terms of highlights. First, financial highlights, the company, surpassed the net revenue of 1.4 billion reais, net profit 268.5 million, although we will tell you that yesterday I was talking to some people, this is the year of the X. Why? Because where we have the cost of formation, high cost and low sale price. I even gave an example. Cost of production of soybean is like a triangle. two three harvests ago it cost 3.8 now it's 5.2 went back to four so a triangle very high cost for soybean so it's a year where we had results that were affected by this we will see this in detail with gustavo what happened to our cost of products sold and the revenue of these products, but we haven't adjusted a bit to 534 million, an expressive result, now in terms of operations more than 2.3 million tons of production and here we have grain sugarcane and the highlight that we have for you we always say the company has the ability to combine operational strategies with real estate strategies and it was a year in terms of real estate very strong we had already said we had already said that we should we should sell more than buying due to the liquidity of the market so we sold more than 9 000 useful hectares so we want and there this is the challenge we sell arable land and we want to continue growing totaling these 9,000 hectares sold, 610 million reais in sales. These are expressive numbers, and I believe that you who are following us I know that you do market analysis. Always in the beginning, I used to hear, oh, it's difficult to model how much you sell. It's difficult for the NAV and more and more, this is happening in a recurring way. And I want to say that everyone knows that the company sells farms every year. Okay, next slide. Well, as we were talking about sales and here we brought all the sales during the year so a lot of activity this year so we begin with a sale in paraguay a small sale but i always say these this is only the beginning so we sold in paraguay 1.5 million dollars 868 total hectares, almost 500 useful hectares. Then we made a second sale, first in Paraguay, above 20%. Help me with the numbers, 27.9, 27.9. Rio do Meio, we made a big sale and here we have a combination acquisition and sale. We were able to have a 52.4% return, expressive profit short sales, short duration sales. Then we had also sales in Fazenda Jatoba, 121 million, 16%. And you may say, oh, André, you're showing an asset of 52 and 16. But look at the generation of value for the shareholders. Fazenda Jatoba has been with us for more than 17 years. Then it continues to delivering also profit around 16 percent we've seen partial sales and this year we divested totally this asset this farm and the company's ability to do two sales we had different environments in the farm so we tried to accommodate to get to our price that we wanted according to the company's council, so we did this in two sails. A small sail, which was kind of savanna with sand, and another sail, that sold the remaining remainder. The second was very expressive 410 million Reais with an average price of 790 bags. So we had areas with more than 1200 bags per harvest and areas with 900. So this reinforces our ability to make good capital allocations. So, in total, we sold more than 12,000 hectares, 9,000 useful, for 610 million reais, and four. In the last five years, you always hear me in the last five years we have had an average price of 269 million reais in sales so around 14.5 percent of tir so this shows the company's track record and the company's ability to say that yes we have this joint model impact of planting and also sale of plots of land. Well, here we have information for you. First, on the right, the graph at the top, 3.444 This was an external evaluation. You know that this is the value of our land. We use Deloitte as an outside company to evaluate. So we're comparing the evaluation made by Deloitte of our land in 2021, and the evaluation of Deloitte now. So, 3 million point 444, and the current evaluation by Deloitte once again, 3 million 560. But what happened in the in the meantime in 2020 the portfolio is the same from 2021 2023 so we had sale of farms so how did we make a good evaluation we excluded from 3.444 million the sales that happened from 2021 until now at at this value not at the sale value so the evaluation when we divested, 897. These are the sales. When you consider the the value 1 billion 341 million reais. So we sell in installments, there's the duration of the operation, but fundamentally, once again, I say we have been selling in a recurring way above the evaluation prices. When I say evaluation, we're very safe about what we're saying. Now, when we look at this new portfolio, 3,560, excluding 897, and adding the purchase of Panambi Farm, we have a variation of 26%. So this is, we see that our land appreciated. So looking at 2021 and 2023, we see the land appreciated. At the bottom, I always say that being transparent with you, no one here is paid for appraising or we are evaluated by the results. So we have a lot of accuracy in the evaluations and the graph at the bottom shows the green and yellow. Deloitte and our evaluation, the land evaluated by Deloitte and evaluated by us. We are always conservative. And this makes sense. You as an investor, you have to see, and conservative evaluation is much better. So here we have been conservative when we look at our evaluation versus the one by Deloitte. Our evaluation is 10% lower, and the graph actually the bubble on the left here in a conservative way we do this nav with our internal evaluation of the shares so it's good business for us and excellent to use evaluations from outside So you would have to add another 500 million reais between both of them, which is almost another five reais per share. So we're talking in a conservative way, a share being worth 37. And if you consider the shares evaluated by outside, you would have 42 reais per share.

Well.