BrasilAgro - Companhia Brasileira de Propriedades Agrícolas Q3 FY2023 earnings call

• Net revenue for the first nine months was R$663 million, net profit was R$25 million, and adjusted EBITDA was R$168 million. - Sold the remaining part of Araucária Farm, with explanations regarding the price difference based on soil types. - Implemented structural projects such as connectivity in units, a seed production plant focused on meeting own seed needs, and irrigation projects in various units. - Crop performance: Soybean had net revenue of R$150 million against a budgeted R$157 million; corn prices dropped; cotton saw a small improvement; cattle raising was affected by domestic consumption restrictions; ethanol showed improvement. - Fertilizer costs had a significant impact, with greater influence on crops like sugarcane, cotton, and corn due to higher fertilizer usage per hectare.

For the first nine months ended March 31st, BrasilAgro reported net revenue of R$663 million, net profit of R$25 million, and adjusted EBITDA of R$168 million. The company had practically 100% of soybean production in Brazil, Paraguay, and Bolivia, amounting to approximately 203,000 tons. The remaining part of Araucária Farm was sold, with different areas having varying soil types affecting the sale price. Revenue was impacted by lower soybean sales volume, sugarcane issues including a fire - related reduction in volume, and price drops in commodities.

• For soybean, the budget was R$157 million but actual was R$150 million, with an expectation of price drops in the next year. - Corn prices were on a downward trend. - Cotton had a small improvement. - Cattle raising was constrained by domestic consumption restrictions. - Ethanol showed an improvement. - Aimed to sell 80% - 85% of soybean by August and look for opportunities to sell corn. - Made a new budget with uncertainties regarding fertilizer premium and freight.

• Commodity prices experienced a drop, affecting revenue. - There was pressure on fertilizer costs, especially for crops with high fertilizer requirements. - Domestic consumption restrictions had an impact on cattle raising prices. - Uncertainties existed in the land market and the future basis for sales.

Q: First, regarding the sale strategy, margin per crop expectation; second, update on the recovery of the sugarcane area affected by fire and productivity; third, seed operations.

A: On the sale, they are monitoring the market and aiming to sell 80% - 85% of soybean by August, and looking for opportunities to sell corn; on the sugarcane fire, the irrigated area was affected, and they expected recovery; on seed operations, the seed production plant is for own use, and they aim to cover 60% - 70% of their seed needs.

Q: Follow - up on basis reduction, future perspective, and land strategy.

A: The basis may recover with production rebalancing; they will continue selling land, looking for buying opportunities when favorable, and leasing land to expand production.