BrasilAgro - Companhia Brasileira de Propriedades Agra­colas 2026 Q4 Earnings Call

Good morning, everyone. Once again, we're gathered here at the earnings call for BrasilAgro. We're disclosing our earnings for the harvest year 2025, 2026 ended on June 30, 2026. If you've been listening in English, we have the presentation available on chat as well. Welcome everyone, and I'll pass the floor on to André.

Thank you, Ana Paula. Thank you everyone once again for being with us. I think before we start getting into the numbers, it's always great to remember a bit of the rituals that took place in this year. We had so much geopolitical volatility. We had so much volatility from an economic perspective. It's worth mentioning that in the past when we were confirming the budget for this year, we had a dollar at about six, and throughout the year we saw this below five, then it went up a bit.

I think in this year of a lot of volatility, we really want to focus on this. We're going to discuss what happened in our earnings, but it's a year where despite the numbers are really tough, we've been having a lot of achievements and we really want to share this with you and show how important this was. We had an important turnaround when it comes to productivity and really using resources and proceeds for more profitable crops. We're going to use all of this to give you a perspective of the great work the company's been working on, as well as on telemetrics and everything we consider to perform real time management through AI and other features.

Not only the numbers, but when we talk about agribusiness, when we talk about agricultural companies, the photograph is very important. Here we're going to show you this photograph. What's most important in the agricultural market is the video. The video that has many years go by, and we're sure that in the film the company has been delivering and has been a great actor. Maybe in the photograph we weren't such good photographer. Here we're going to show you how we're very hopeful in our next cycle of earnings and everything we have ahead of us. Let's get into the numbers. We closed up with BRL 926 million of net revenue, BRL 100 million in adjusted EBITDA accumulated or accrued profit, BRL 90 million loss in losses negative. We're going to discuss the detracting factors for some crops that were Gustavo will get into details of what took place last year.

We've been talking about the sugarcane fires and also the ice phenomenons we've been having with climate conditions and the production of grains and cotton. That was a real all-time high harvest, 167,000 hectares planted and the portfolio value of BRL 3.1 billion. This is something the company really values and we're going to be sharing how this is made up. I always talk about how this is where we really have a difference in the game, a game changer. This is what we know how to do and what we've been doing with a lot of skill.

What we bring here is an evolution of our portfolio and how it has been behaving and what we consider took place during the last period and how we are not passive in this process. If we were just passive landlords, we were just going to be worried about valuing our land due to commodity prices. Here, what we are bringing as details is we really want to show you that when we look at year-over-year, we are going to be explaining basically that we had this assessment of BRL 3.1 billion. Now we are going to get to BRL 3.34 billion now, right? How did this appear on our portfolio? We have appreciation of our land value, and this has been due to some regions.

We always say that we have been. I have been actually using this phrase, initially the company diversified regions thinking about productivity, volatility, and commercial marketing. We have been very fortunate in reaping these real estate results with this volatility. There are different liquidity hubs in Brazil, and since we are positioned in different regions, we have been really taking advantage of this. Area maturity, this is where we really have the game changer, where we generate value for shareholders. We have almost BRL 95 million. If we were a company that was just passive buying mature land, that would be a different scenario.

Here we are really driving the wheel here and really working to have the maturity of this area, right? If we were considering this when we consider the area maturity, we are talking about like an area with 3 years of crops is worth more than 4, and an area with 4 is worth more than an area with 5. The maturity of this portfolio is so important. This is really a factor where even in years where the market went sideways when it comes to land prices, if you consider this to be a real engine or booster in your business, we can still generate value for shareholders. The other effect is the soy price more recently now at the end, and we are going to get into details about this.

A third point that is also important to highlight, which is the efficient way the company has been selling and if we have any default in customers, and this was one of these cases, then we brought in the cancellation, right? The part that they paid, we are going to consider, and the part that was not paid was going to be given back to BrasilAgro. Soon we will also be announcing new business opportunities as well. You are going to see it is almost as if we were to buy back land that we sold 3 or 4 years ago and we are going to sell now. This was a business that was very good for the company, and this gives us a portfolio assessment of 3.2.

Once again, this places us as a very unique company that is searching for ways to generate value to shareholders through a land transformation. The graph on the right is just this evolution of what we have been showing here, and this is not a year where we are assessing with Deloitte. We do this every two more years, but this is our internal assessment. We are also going to have the Deloitte assessment supporting all of this maturity and development of the areas here. This is where the company really plays a different game, and we bring value to our shareholders even in a year of challenges in agribusiness with geopolitical issues, interest rates are high, currency scarcity in fertilizers, the wars, and all of this going on. But the company is still generating value for shareholders with this business model.

It is really important to keep this clear in this conversation. We will talk about more details about what happened. We have been actually seeing this rush in the last few days. We consider this mainly due to the funds coming in, especially in the last three or four weeks or months. We have seen significant expression. For corn, we also see a bit of recovery. No doubt we have had some surprises in the last few days, especially when it comes to cotton recovering a lot in the prices and our cotton was at about 65, 68. We saw cotton reach almost 90 in the last few days.

Once again, cattle raising is an activity that we consider as transitional, but we have been intensifying it in certain regions, sorry, and considering areas that are maybe contributing negatively with soy and also taking advantage of this moment with cattle raising. We are very optimistic. For ethanol, we are portraying a bit of the frustration of the entire sector. Why am I talking about this? I do not remember times where petroleum went over $100 a barrel and ethanol did not really keep up with the good price wave. We know that here we have a policy of parity that is sometimes not respected due to political influences, and that has really hindered the whole sector. But we hope this is equalized and corrected over time. For sugarcane, this is here a photograph for the year.

We reached almost 14.5 and we have also seen significant recovery now. I always say that sugarcane, if someone asks you what is the recovery factor for the sugar prices now, we have multiple factors. We have El Niño in India. We have a reduction in our production in Thailand. We have beetroot sugar due to the margins there that worked not well. We had an excessive Brazilian harvest due to the rain. Everyone knows that if you have a more humid harvest, there is less chances of having sugar. It is more profitable to produce alcohol. Anyways, it is really a sum of different factors here. We saw this rush in sugar prices also, and I hope that now this sugar price impact will help us create this buffer and recover the ethanol prices, as we have already seen some positive signs for this.

This is an overview of the commodities we operate with over the years. Next, please. The next slide here reflects a bunch of different information and details of what has been going on and some things I have already discussed from a geopolitical perspective. It is a year with a lot of volatility, but what we have really tried to demonstrate is how the company has been trying. I always want to reinforce here that we are considering the contribution margin and profitability of those activities, searching for ways to do this in the best manner. Here in the first photograph, we show you the MAP and the purchases last harvest, this harvest where we operated with about BRL 580, BRL 600 and now we can see that it is around BRL 800, BRL 850 per ton.