BrasilAgro - Companhia Brasileira de Propriedades Agrícolas Q3 FY2020 earnings call

• During the pandemic, a Risk Committee was created to monitor risks, focusing on preserving life and ensuring operational safety. - Reached net revenue of BRL353 million, net profit of BRL85.6 million, and adjusted EBITDA of BRL78.5 million in Q3. - Completed planting of the second corn crop. - Soybean harvest was 91% complete with a yield above expectation. - Sugarcane planted area was reduced, and some farms like Sao Jose Maranhao were in a ramp - up phase. - Cattle raising was a transition phase, and the high price of meat was being utilized. - The company worked with hedge to guarantee results and expected positive surprises in land price and margin increase.

Net revenue was BRL353 million, net profit was BRL85.6 million, and adjusted EBITDA was BRL78.5 million. Soybean planting area increased from 51 million to 54 million hectares. Second corn crop planting saw a significant year - on - year increase. Sugarcane planted area was reduced. Sao Jose Farm in Maranhao was in a ramp - up phase. Pasture was a transmission phase to mitigate risk. Cotton was in a learning phase. Leased areas had a 15% year - on - year growth in productive land. For the nine months, EBITDA was BRL140 million, adjusted EBITDA excluding sugarcane effects was BRL78.4 million, gross profit from agriculture was BRL138 million, and from real estate was BRL20 million.

• Q3 results included net revenue of BRL353 million, net profit of BRL85.6 million, and adjusted EBITDA of BRL78.5 million. - Need to analyze the impact of remaining soybean, corn, and cotton harvests on future results. - Considered opportunities in credit, investments, and acquisitions, with a more selective approach to investments, especially in sugarcane planting. - Expected positive surprises in land price and margin increase in the future.

• Logistics risks due to the coronavirus pandemic. - Exchange rate volatility risk. - Oil price drop affecting synthetic fibers and thus cotton prices. - Sugar price drop due to oil crisis risk. - Capital structure issues for related sugar and ethanol plants.

Q: Can you talk about the strategies, contingency, evaluating investments? Are you optimistic about more sales this year?

A: Opportunities will arise by preserving cash and sustainability to guarantee operations and look at market opportunities. There are opportunities in large - scale acquisitions in the farming segment. Investments are being evaluated selectively, with some deceleration in sugarcane planting. We are looking at the results and analyzing the impact of remaining harvests.

Q: One is about the sale of land. Looking at macroeconomic conditions, does this change your strategy to sell land? And looking at liquidity, is there any change in the dividend policy?

A: Sale of land is expected to be good as real estate market may grow with low interest rates. In terms of dividends, 25% of profits will be paid as dividends by law, and if there are new sales, we will try to pay more dividends, but it's difficult to say specifically now.

Q: I went to Mato Grosso. Talk about your relationship with sugar and ethanol plants who are having problems? Would it make sense to exchange sugarcane to soybean in that region?

A: Most receivables were paid, with only BRL4 million delayed in May. We have been migrating from sugarcane to soybean for several years. We have converted areas to soybean and corn, and can also sell land in the region as land prices are high.