Brasilagro Brazilian Agric Real Estate Co Sponsored ADR (Brazil)

Good morning, everyone, and welcome to the third quarter earnings call, the first nine months of the 25-26 period at Bizarre Agro. Thank you for waiting. We started a little bit late today, and we have André and Gustavo to present our earnings. If you're in English, this presentation is also available on the chat. And before we begin the call, I want to start off by saying, first of all, that Bazaar Group's completing anniversary, we're completing 20 years of history, and we're really happy with this milestone. No one imagined 20 years ago that a PowerPoint would become such a big company that's so significant in the sector and in the future. You'll also see we have a new visual identity to celebrate this anniversary, and we're really happy to share our anniversary. So now I'm going to pass the floor to André to start the call.

Hi, can you hear me now?

Great. Sorry about that. We had some technical issues here. Ana, thank you for the introduction. Thank you all for being with us 20 years, as mentioned by Ana Paula, of a lot of resilience and a lot of lessons learned. A lot of achievements and mistakes, of course, but that's what makes a company mature and really have results. And no doubt the points right were a lot greater than the wrong points. And so that really helps us to become a better company. So that enabled, we also enabled the growth of many people and the development of many regions. So when we left behind and this is a region of a lot of happiness for us, how many people were able to achieve support for their families, how many regions were transformed. and thousands of kilometers of roads and electrical networks were implemented. So now these 20 years, we're going to get into a little bit of what this history of 20 years is all about and how we built this. And we definitely did this with people who worked and your trust. There's no work without trust, and there's also not only trust, right? So the combination of trust in the company's investors and analysts in these 20 years and the work on our behalf really made us reach the point we're in and work in this direction, right? So that's what makes. everyone really happy as they are part of the company today. So we're going to talk about our results, and it's a really complex year due to the interest rate and other factors, but let's look at what we have under our own control, which is technology, plantations, productivity, and we know agribusiness has its cyclical nature and today we're experiencing a low cycle moment and we're going to talk about this and the good things and the bad things and that's why we're we're really going to be available to respond to this right so let's talk about the numbers of the first nine months 637 million of net revenue it's really important to uh when we look at the first nine months last year There were sales that were also accounted for, and we have an adjusted EBITDA of 42.8, and an interest rate, and with all of this, we reached those nine months with 76 million of net losses. So this is really influenced by the financial expenses and sugarcane in the second half of last year, and thankfully, sugarcane is doing really well this year, but we've had very positive perspectives here and we actually were able to close some harvests that we'll be able to demonstrate here when it comes to soy. So on the next slide, please. Here we can see, once again, the resilience of the company to continue to sell land in Paraguay. It's a small sale, but it's really important to demonstrate that we have liquidity and that it is a project that in the last few years suffered a lot climate issues, but this year has been really well. So when you have a good productive year, you attract liquidity, right? And we were able to complete a sale in Paraguay, not very big, but very significant when it comes to internal return rates. We're talking about 23% in reais within our historical averages and 14% of the internal return rate in dollars, right? So no doubt Paraguay This year we have very positive production and we'll have a lot of success from a productive and real estate perspective as well. Next please. Here's a little bit of the scenario and here's what we asked to share here which is this line over here at the end of each one where we began the, where we had the beginning of the war in Iran. And then what we see is soy is kind of moving sideways ever since the conflict began. Corn as well is really connected to this. And the only commodity where there was a significant recovery after this was cotton. And we know why. because of the connection that cotton has and the synthetic fibers have with oil subproducts really made cotton pull this, the prices.