BrasilAgro - Companhia Brasileira de Propriedades Agrícolas Q2 FY2021 earnings call

• Key financial results for Q2 2021: Net revenue BRL348 million, net income BRL52.2 million, adjusted EBITDA BRL116.7 million. • Recent capitalization improved liquidity, enhancing the company's future prospects. • Commodity market positives, including global animal protein shortage boosting commodities. • Sugarcane production in Mato Grosso with solid results. • Acquisition of Agrifirma, with expectations of positive accounting results by June 30. • Bolivia operations: Began harvesting sugarcane in March/April, with expected results in 60-90 days.

In Q2 2021, BrasilAgro reported net revenue of BRL348 million, net income of BRL52.2 million, and adjusted EBITDA of BRL116.7 million. Product segments included sugarcane, with production of over 2.2 million tons from Mato Grosso; grains such as soybean and corn, where hedging had an impact; cattle raising; and farm leasing. Sugarcane revenues contributed significantly, and the company also mentioned the acquisition of Agrifirma, with expectations of positive results from soybean and corn harvests. Revenue from sugarcane in Bolivia was noted, with 1,900 hectares producing 80 tons last year.

• Expectation of allocating capital proceeds from the recent follow-on within 6-8 months through land acquisitions. • Harvest results in Bolivia expected in 60-90 days due to ongoing sugarcane and crop harvests. • Positive results anticipated for March 30 and June 30, driven by soybean and corn harvests.

• Impact of derivatives on financial results, with potential negative effects if harvest issues occur. • Market volatility affecting commodity prices and exchange rates. • Differences in management between rural and urban real estate funds, posing challenges for fund-based land transactions.

Q: What is the conclusion of the follow-on and your comments in which you will now grow rapidly? Can you give us a forecast of the use of these proceeds for land?

A: André Guillaumon mentioned allocation of funds through negotiations for land acquisitions, with an estimated 90-day due diligence process for acquisitions. Estimated acquisition cost per hectare for pasture land conversion is BRL15,000 - BRL18,000 with BRL3,000 - BRL4,000 in CapEx.

Q: What are the forecasts for the next several quarters regarding derivatives?

A: André Guillaumon stated there are 3 million bags of soybean to be produced, with hedging impacts seen, and expected positive results for March 30 and June 30 as harvest progresses.

Q: Do you intend to maintain the sales of farms?

A: André Guillaumon said the company is working on selling farms in some regions, using proceeds from the follow-on for future land acquisitions, buying underperforming land to develop and then sell.