Slc Agricola S.a. · BMFBOVESPA:SLCE3
Slc Agricola — Q2 2024 Earnings Presentation
27 slides from Slc Agricola's earnings presentation, Aug 15, 2024
Slide 1: Earnings Conference Call 2Q24
EARNINGS CONFERENCE CALL 2Q24 Speakers: Aurélio Pavinato – CEO Ivo Brum - Chief Financial and Investor Relations Officer Rodrigo Gelain – Financial and Investor Relations Manager AGRICULTURE AT ITS BEST
Slide 2: Language choice and Q&A instructions
Faça sua pergunta ESCOLHA DO Tradução Simultânea IDIOMA + Q&A Simultaneous Translation Ask your question PORTUGUÊS ENGLISH Essa videoconferência será em The following presentation will be português, com tradução held in Portuguese, with simultânea para o inglês. simultaneous translation to English.
Slide 3: Market Overview
4a MARKET OVERVIEW Bee A211CO!7
Slide 4: Cotton Export – Brazil
MARKET OVERVIEW > COTTON EXPORT – BRASIL (Million Tons) 2.7 2.4 1.9 1.7 1.4 (Million Tons) 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 Source: Comex Stat
Slide 5: Cotton World Supply & Demand
MARKET OVERVIEW > COTTON WORLD SUPPLY & DEMAND PRICE (million bales) (ICE) SPOT Oct 24 - US¢\pd 68.29 +9.2% USA Planted Area -6.6% USA Yield (ICE) Dec 24 - US¢\pd 69.07 2024/25 VS 2023/24 (ICE) Jul 25 - US - US¢\pd 72.50 (ICE) Dec 25 - US - US¢\pd 70.82 140 7 130 123.0 124.6 6 Million Bales 160 119.
Slide 6: Soybean World Supply & Demand
MARKET OVERVIEW > SOYBEAN WORLD SUPPLY & DEMAND PRICE (million tons) (CBOT) SPOT Aug 24 - USD\bu 10.12 +4.2% USA Planted Area (CBOT) Sep 24 - USD\bu 9.71 +5.1% Yield USA 2024/25 VS 2023/24 (CBOT) May 25 - USD\bu 10.33 (CBOT) Jul 25 – USD\bu 10.43 460 429 7 410 395 360 369 366 378 364 403 360 Million
Slide 7: Soybean CBOT vs Soybean Basis Porto Paranaguá
(¢ / Bushel) (US$ / Bushel) 0 100 200 300 -200 -100 0 200 400 600 800 1000 1200 1400 1600 1800 2000 09/05/2024 11/05/2024 May/24 Mai/24 13/05/2024 SOYBEAN 15/05/2024 17/05/2024 MARKET OVERVIEW > 19/05/2024 21/05/2024 23/05/2024 25/05/2024 27/05/2024 29/05/2024 31/05/2024 02/06/2024 04/06/2024 06/06/
Slide 8: Corn World Supply & Demand
MARKET OVERVIEW > CORN WORLD SUPPLY & DEMAND PRICE (million Tons) (CBOT) SPOT Sep 24 - USD\bu 3.83 -4.1% USA Planted Area +2.1% USA Yield (CBOT) Dec 24 - USD\bu 4.01 2024/25 VS 2023/24 (CBOT) Jul 25 – USD\bu 4.38 (CBOT) Sep 25 – USD\bu 4.39 1,013 1,123 1,092 1,126 1300 1,133 1,134 1,151 1,080 1,124
Slide 9: 2023/24 Crop: Yield, Costs, Hedge Position
2023/24 CROP • Yield • Costs • Hedge Position
Slide 10: Yields 2023/24 Crop Year (Kg/ha)
2023/24 CROP > YIELDS 2023/24 CROP YEAR (Kg/ha) 100% harvested 57,6% harvested 99,2% harvested +26.5% 7,046 5,556 +2.3% 3,202 3,276 +5.7% 1,870 1,977 Soybean Cotton Lint Corn 2nd crop 1st e 2nd crop CONAB Yields SLC Agrícola’s Yields Source of national data: Brazilian Harvest Monitoring Report, Apri
Slide 11: Costs and Hedge Position
Costs and Hedge Position 2023/24 CROP YEAR Cost per Hectare Hedge Position -10.1% Soybean 91.6% 7,985 12.38 usd/bu 7,177 Corn 68.8% 46.15 R$/bag Cotton 58.8% 2022/23 2023/24 84.61 US¢/pd
Slide 12: Financial Performance
FINANCIAL PERFORMANCE SLC Bee A211CO!7
Slide 13: Financial Highlights
FINANCIAL PERFORMANCE > FINANCIAL HIGHLIGHTS (R$ thd) 1S23 1S24 AH 2Q23 2Q24 AH Net Revenue 3,663,737 3,308,511 -9.7% 1,444,422 1,351,597 -6.4% Gross Income 1,900,766 1,477,278 -22.3% 732,980 831,062 13.4% Gross Margin 51.9% 44.7% -7.2p.p. 50.7% 61.5% 10.8p.p. Operational Result 1,617,280 1,173,680
Slide 14: Net Debt
FINANCIAL PERFORMANCE > NET DEBT Credit Line Average Interest Rate (%) Consolidated (R$ thd) Index 2023’ 2Q24 2023 2Q24 Applied in Fixed Assets 20,038 16,062 Finame – BNDES Prefixed 6.1% 6.3% 20,038 16,062 Applied in Working Capital 4,373,341 5,371,008 Rural Credit Prefixed 10.2% 8.9% 31,553 20,301
Slide 15: CRA
FINANCIAL PERFORMANCE > CRA Operation: CRA Total Volume: R$ 1,090,586,000.00 Lead Coordinator: Coordinator: Type: Resolução CVM nº 160 Rating: AA.br em escala local pela S&P Interest Serie Amount Term Amortization Remuneration Payment 1st serie R$ 202.174.000,00 5 Years Bullet Annual no waiting peri
Slide 16: Evolution in the Value of the Land Portfolio
FINANCIAL PERFORMANCE > EVOLUTION IN THE VALUE OF THE LAND PORTFOLIO R$/MM 11,591 10,928 New CAGR Same Farms (IPO Portfolio) | 2007 a 2024: 9,352 14.15% 6,941 CAGR CDI:(1) 3,360 6,093 7.9% 5,462 3,602 3,860 3,948 3,401 2,679 1,496 1,756 1,588 1,649 1,813 1,270 952 1,017 670 713 O MELHOR DA2007 2009
Slide 17: Perspectives 2024/25 Crop Year
PERSPECTIVES 2024/25 CROP YEAR
Slide 18: Inputs | Fertilizers
PERSPECTIVES 2024/25 CROP YEAR > INPUTS | FERTILIZERS 2024/25 Crop Year % acquired: 100% POTASSIUM CHLORIDE 99% PHOSPHATES 97% NITROGEN 1400 1200 1000 (USD/ton) 800 600 635 400 348 310 200 300 0 Aug/21 08/08/2021 Aug/22 08/08/2022 Aug/23 08/08/2023 Aug/24 08/08/2024 UREA CFR MAP CFR KCL CFR SSP CPT
Slide 19: Hedge Position
PERSPECTIVES 2024/25 CROP YEAR > HEDGE POSITION FX Hedge – Soybean Commercial Hedge – Soybean Crop Year 2024/25 Crop Year 2024/25 % 40,2 % 45,7 R$/USD 5,3497 USD/bu(2) 11,94 Commitments %(1) 37,2 Commitments %(1) 15,6 FX Hedge – Cotton Commercial Hedge – Cotton Crop Year 2024/25 Crop Year 2024/25 %
Slide 20: Expansion of the Partnership with Agro Penido
PERSPECTIVES 2024/25 CROP YEAR > EXPANSION OF THE PARTNERSHIP WITH AGRO PENIDO +18,700 Physical hectares Potential Area: 30,734 hectares* * 1st & 2nd crop
Slide 21: Agropecuária Rica Partnership
PERSPECTIVES 2024/25 CROP YEAR > AGROPECUÁRIA RICA PARTNERSHIP +11,282 physical hectares Potencial Area: 21,837 hectares* * 1st & 2nd crop
Slide 22: New Lease Contract Piauí
PERSPECTIVES 2024/25 CROP YEAR > NEW LEASE CONTRACT PIAUÍ Potencial Area: 14,572 hectares* * 1st & 2nd crop
Slide 23: Potential Area 2024/25
PERSPECTIVES 2024/25 CROP YEAR > POTENTIAL AREA 2024/25 59.2 thd ha arable * 1st & 2nd crop
Slide 24: Our Big Dream and Values
OUR OUR BIG DREAM VALUES To positively impact future generations, through global leadership in agribusiness and respect to the planet We believe that those who have PASSION FOR WHAT WE DO are committed and do it with the highest quality, preserving their INTEGRITY through an ethical conduct, consist
Slide 25: Investor Relations Department
INVESTOR RELATIONS DEPARTMENT Ivo Marcon Brum Chief Financial and Investor Relations Officer Rodrigo Gelain Financial and Investor Relations Manager Alisandra Reis Investor Relations Coordinator Daniel Batista Investor Relations Analyst www.slcagricola.com.br / ri@slcagricola.com.br + 55 51 3230.779
Slide 26: SLC
SLC Peed A 271CO!0
Slide 27: Momento Q&A
MOMENTO Q&A Para fazer perguntas: clique no ícone Q&A e escreva sua pergunta, para entrar na fila. Ao ser anunciado, uma solicitação para ativar seu microfone aparecerá na tela e, então, você deve ativar o seu microfone para fazer perguntas. Orientamos que as perguntas sejam feitas todas de uma únic