Slc Agricola S.a. · BMFBOVESPA:SLCE3
Slc Agricola — Q1 2024 Earnings Presentation
25 slides from Slc Agricola's earnings presentation, May 9, 2024
Slide 1: Earnings Conference Call 1Q24
EARNINGS CONFERENCE CALL 1Q24 Palestrantes: Aurélio Pavinato – CEO Ivo Brum - Chief Financial and Investor Relations Officer Alisandra Reis – Investor Relations Coordinator AGRICULTURE AT ITS BEST
Slide 2: Language and Q&A instructions
Faça sua pergunta LANGUAGE Tradução Simultânea CHOISE+ 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. Alt
Slide 3: Market Overview
4a MARKET OVERVIEW Bee A211CO!7
Slide 4: Cotton price and world supply & demand
COTTON PRICE WORLD SUPPLY & DEMAND (million bales) (ICE) SPOT Jul 24 - US¢\pd 77.00 (ICE) Dec 24 - US¢\pd 75.75 -25.6% USA planted area (ICE)Jul 25 - US - US¢\pd 79.38 -13.7% yield 2023/24 VS 2022/23 (ICE) Dec 25 - US - US¢\pd 74.63 119 120 123 119 119 124 117 116 116 113 113 122 115 114 114 110 113
Slide 5: Soybean price and world supply & demand
SOJA PRICE WORLD SUPPLY & DEMAND (million tons) (CBOT) SPOT May 24 - USD\bu 12.32 (CBOT) Jul 24 - USD\bu 12.40 -4.5% USA planted area +2,0% yield (CBOT) Sep 24 - USD\bu 12.30 2023/24 VS 2022/23 (CBOT) May 25 – USD\bu 12.35 397 364 378 351 344 360 369 366 322 316 367 360366 381 283 340 346 341 269 31
Slide 6: Corn price and world supply & demand
CORN PRICE WORLD SUPPLY & DEMAND (million tons) (CBOT) SPOT May 24 - USD\bu 4.54 (CBOT) Jul 24 - USD\bu 4.67 +7,3% USA planted area +2,2% yield (CBOT) Sep 24 – USD\bu 4.77 2023/24 VS 2022/23 (CBOT) Jul 25 – USD\bu 5.14 1,216 1,228 1,123 1,158 1,146 1,057 1,092 1,126 1,130 1,199 1,026 1,013 1,124 1,1
Slide 7: 2023/24 Crop: Yield, Costs, Hedge Position
2023/24 CROP • Yield • Costs • Hedge Position
Slide 8: Yields 2023/24 crop year
YIELDS 2023/24 CROP YEAR (kg/ha) 100% harvested 100% planted, +39.7% budget yield 7,580 5,427 +1.1% 3,239 3,276 +5.6% 1,850 1,954 Soybean Soja Cotton 1em Algodão st and 2nd pluma Corn Milho22ªsafra nd Crop Crop1ª Média (average) e 2ª safra CONAB Yields Source of national data: Brazilian Harvest Moni
Slide 9: Costs and Hedge Position
Costs and Hedge Position 2023/24 CROP YEAR Cost per Hectare Hedge Position -10.1% Soybean 75.2% 7,985 12.46 usd/bu 7,717 Corn 37.9% 45.00 R$/bag Cotton 50.7% 2022/23 2023/24 86.40 US¢/pd
Slide 10: Financial Performance
FINANCIAL PERFORMANCE Bee A211CO!7
Slide 11: Financial Highlights
FINANCIAL PERFORMANCE > FINANCIAL HIGHLIGHTS (R$ thd) 1Q23 1Q24 AH Net Revenue 2,219,315 1,956,914 -11.8% Gross Income 1,167,786 646,216 -44.7% Gross Margin 52.6% 33.0% -19.6 p.p Operational Result 973,276 498,521 -48.8% Operational Margin 43.9% 25.5% -18.4 p.p. Net Income 574,975 228,943 -60.2% Net
Slide 12: Free Cash Flow Generation
FINANCIAL PERFORMANCE > FREE CASH FLOW GENERATION (R$/MM) Last 5 years Quarter 995 415 429 213 Business Combination Terra Santa Agro (196) (272) (442) 2019 2020 2021 2022 2023 1T23 1Q23 1T24 1Q24
Slide 13: Net Debt
FINANCIAL PERFORMANCE > NET DEBT Credit Line Average Interest Rate (%) Consolidated (R$ thd) Index 4Q23 1Q24 4Q23 1Q24 Applied in Fixed Assets 20,038 18,054 Finame – BNDES Prefixed 6.1% 6.2% 20,038 18,054 Applied in Working Capital 4,373,341 4,955,905 Rural Credit Prefixed 10.2% 10.5% 31,553 40,699
Slide 14: Dividend Distribution and Dividend Yield History
FINANCIAL PERFORMANCE > DIVIDEND DISTRIBUTION AND DIVIDEND YIELD HISTORY Dividends + Interest on Own Capital (R$/Millions) Dividend Yield (%) R$365 millions paid on 05/15 602 6,3% 504 5,9% 4,6% 4,7% 389 Dividend Yield R$ Millions 3,2% 232 2,3% 176 147 2018 2019 2020 2021 2022 2023 * Dividend Yield 2
Slide 15: Perspectives 2024/25 Crop Year
Perspectives 2024/25 CROP YEAR
Slide 16: Expansion of the partnership with Agro Penido
PERSPECTIVES 2024/25 CROP YEAR> EXPANSION OF THE PARTNERSHIP WITH AGRO PENIDO 2 EXPANSION • +18,700 PHYSICAL hectares PARTERSHIP SINCE 2013 • Potential Area:30,734 hectares 1 Pioneira Farm ( 1st & 2nd crops) •Querência/MT •19,872 physical hectares 2.1 18,700 physical ha •Potential Planted Area: 33,5
Slide 17: Inputs 2024/25 crop year
PERSPECTIVES 2024/25 CROP YEAR> INPUTS 2024/25 CROP YEAR (% acquired) 91% Phosphates 53% Nitrogen 75% Potassium Chloride 1400 1200 1000 USD per tonne 800 600 560 400 313 300 200 163 0 May-21 May-22 May-23 May-24 Urea CFR Brazil Spot MAP CFR Brazil Spot KCL CFR Brazil Spot SSP CPT MT Brazil Spot Ammo
Slide 18: Hedge Position
PERSPECTIVES 2024/25 CROP YEAR> HEDGE POSITION FX Hedge – Soybean Commercial Hedge – Soybean Crop Year 2022/23 2023/24 2024/25 Crop Year 2022/23 2023/24 2024/25 % 100.0 86.0 30.4 % 100.0 71.1 21.3 R$/USD 5.3678 5.1908 5.1867 USD/bu(2) 14.25 12.46 11.97 Commitments %(1) - 3.9 44.3 Commitments %(1) -
Slide 19: Corporate Governance
CORPORATE GOVERNANCE Bee A211CO!7
Slide 20: New Statutory Executive Officer and New Chief Sales Officer
Corporate Governance > NEW STATUTORY EXECUTIVE OFFICER NEW CHIEF SALES AND NEW BUSINESS OFFICER Statutory Officer New Chief Sales and New Business Officer Mr. Álvaro Luiz Dilli Gonçalves Mr. Roberto Acauan Junior
Slide 21: Planting Hope
Corporate Governance> ESG PLANTING HOPE
Slide 22: 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 23: 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 Stefano Bing Investor Relations Analyst www.slcagricola.com.br / ri@slcagricola.com.br + 55 51 3230.7799
Slide 24: SLC
SLC Peed A 271CO!0
Slide 25: Q&A Moment
Q&A MOMENT 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 única