CONFERENCE CALL PRESENTATION. November, 13th

Transcription

1 CONFERENCE CALL PRESENTATION November, 13th 1

2 BrasilAgro Overview Start-up company created by an experienced team to take advantage of opportunities in the Brazilian agricultural market Revenue stream from agricultural production Capital gains from purchase, development and sale of properties BrasilAgro aims to introduce Cresud s successful business model in Brazil, leveraging on the experience of its management team and founding shareholders in real estate and agribusiness sector Sale of Property Value Creation Buying and developing producing business Undeveloped Land Land under production Real Estate Business Time Acquisition of Property Developed Land - Ready For Sale 2

3 Acquisitions and Portfolio of Properties Of the R$ million net proceeds from the IPO, around 14%, or R$77.5 million, was committed to the acquisitions already announced 1. In September/6, the Company completed the acquisition of a 2,443 hectare rural property in the municipality of Chapadão do Céu, in the state of Goiás. In October/6, after the successful completion of due diligence, BrasilAgro acquired a 32,375 hectare rural property in the municipality of Baixa Grande do Ribeiro, in the state of Piauí. Also in October/6, the Company entered into a Purchase Agreement for a 2,6 hectare property located in the municipality of Maracaju, in the state of Mato Grosso do Sul. Portfolio of Properties Property Summary Goiás Piauí I Piauí II MS Agreement Date Aug-6 Aug-6 Aug-6 Oct-6 Acquisition Date 1-Sep-6 1-Oct-6 Pending Pending Municipality Chapadão do Céu Baixa Grande do Ribeiro Baixa Grande do Ribeiro Maracajú Cremaq São Pedro Engenho Area 2,443 32,375 13,764 2,6 Agreed Price Installments This figure does not include the investments necessary for land conversion and project implementation. 3

4 Income Statement and Highlights Income Statement PERIOD ENDED ON SEPTEMBER 3, 26 (In thousand of Reais, except on net income per share ) 1Q7 4Q6 Net Revenues (Land lease) 21 - General and Administrative Expenses Administrative Expenses (22) (115) Personnel Expenditures (541) (389) Fees and Third Party Expenses (1,734) - Depreciation and Amortization (77) (47) Share Placement Expenditures (172) (32,392) Financial Income Interest on Financial Investments 15,695 12,478 Financial Expenses Banking Expenses and Charges (177) (2,698) Foreign Exchange Translation Loss (1) - (277) (2,698) Equity in the Earnings of Subsidiaries Equity on Foreign Subsidiary 793 (7,751) 793 (7,751) Net Income (Loss) for the Period 13,56 (3,914) Net Income (Loss) per Share - R$ 23.1 (52.9) Highlights Financial income totaled R$15,695, arising from short and mid-term financial investments and from investments in its overseas subsidiaries G&A expenses in the quarter of R$2,554 compared to R$551 (ex-ipo expenses) in previous quarter Positive exchange variation of R$ 793 on equity in foreign investments due to the devaluation of real against the dollar Expenses Breakdown Depreciation 3% IPO Expenses 6% Fees and Third Party 64% Administrative 7% Personnel 2% 4

5 PERIOD ENDED ON SEPTEMBER 3, 26 (In thousand of Reais) 9/3/26 6/3/26 CURRENT ASSETS Cash and Equivalents 556, ,552 Marketable Securities - 14,41 Receivables from Land Lease 23 - Advanced Payments 4,522 - Tax Credits 1,72 1,613 Other Credits , ,423 LONG TERM ASSETS Credit with Related Parties PERMANENT ASSETS PP&E 9,957 6 Deferred Assets 1,426 1,54 11,383 1,51 TOTAl ASSETS 574, ,955 Balance Sheet and Highlights Highlights Cash and Equivalents of R$556,275 invested in short term high grade fixed income securities PP&E of R$9,957 reflects the acquisition of property in Chapadão do Céu, GO Accounts payable (Farm purchase) of R$6,16 represents the outstanding payments to be made for acquisition in Chapadão do Céu, GO Cash Position and Equivalents CURRENT LIABILITIES Suppliers Accounts payable (Farm purchase) 3,8 - Taxes Payroll and Social Charges Payable Provisions Partners Checking Account Payable ,459 1,645 LONG TERM LIABILITIES Accounts payable (Farm purchase) 3,8 - SHAREHOLDERS EQUITY Paid-in Capital 584, ,224 Accumulated Loss (17,48) (3,914) 566, ,31 LIABILITIES & SHAREHOLDERS EQUITY 574, ,955 14,41 537,552 4Q6 Cash 556,275 1Q7 Securities 5

6 Current Trends in Commodity Prices In recent weeks, soft commodities started to recover strongly impacted by acceleration in demand growth driven by renewable fuels. In the US, ethanol already demands 18% of total domestic corn production 1 SUGAR HISTORICAL PRICE In US$ cts / Bushel /1/ /1/ /1/ /1/2 31/1/22 31/1/24 31/1/26 CORN HISTORICAL PRICE In US$ cts / Bushel /1/ /1/ /1/ /1/2 31/1/22 31/1/24 31/1/26 SOY HISTORICAL PRICES In US$ cts / Bushel /1/ /1/ /1/ /1/2 31/1/22 31/1/24 31/1/26 WHEAT HISTORICAL PRICES In US$ cts / Bushel /1/ /1/ /1/ /1/2 31/1/22 31/1/24 31/1/26 1 Source: Credit Suisse; USDA 6

7 São Pedro Farm Project Characteristics Location: Chapadão do Céu, GO Total Area: 2,443 ha Potential production area: 1,773 ha Total land acquisition investments estimated in BRL 11.1 million Soybean and livestock with potential to convert to sugar cane Acquisition price: R$9.85 million in three installments (US$ referenced) BrasilAgro leased the land for the first year for 7.5 sacks of soybean Rationale MS PR GO SP Appropriate topography and rainfall levels Located within 1, km of a major port Adequate infrastructure MG Railway Acquisition price significantly bellow the region average High potential for land appreciation due to the future installation of sugarcane mills in the region Potential for follow-on acquisitions in the region Obs: Oval shape in map does not indicate property s actual size, but region in which it is located 7

8 Cremaq Farm Project Characteristics Location: Baixa Grande do Ribeiro, Piauí Property with total area of ha, with potential production area of 23. ha Roughly 3, ha of land already under production 16, hectares already cleared for production Acquisition price : R$42,1 million in three installments MA PI CE PE RN PB Farming operations with crop rotation, especially soybeans, corn and cotton TO SE AL BrasilAgro signed another Purchase Agreement with the same owners for an area of land adjacent to the first one, totaling 13,764 ha. BA The price agreed was R$ 15.5 million, however this acquisition will depend on the regularization of the title Rationale Cheap land prices, significantly below equivalent farmland in Brazil Attractive infrastructure: proximity of Itaqui port, Norte-Sul and Trans Nordestina railroad Existence of industrial storage and processing units in the region Appropriate topography and climate Significant land appreciation potential Obs: Oval shape in map does not indicate property s actual size, but region in which it is located 8

9 Engenho Farm Project Characteristics Location: Maracaju, MS Within 2 Km from Usina Maracaju Total area of 2,6 ha Potential production area: 1,68 ha 1,58 ha currently leased to Usina Maracaju The leasing contract of between 7.5 and 8 tons of sugarcane per year to be expired on 29 Agreed price: R$1.3 million BrasilAgro executed an advanced payment of R$1.49 million Undergoing due diligence MS PR GO SP MG Rationale Appropriate topography Appropriate rainfall levels and fertile soil Adequate infrastructure Acquisition price significantly bellow the region average Partnership with Tavares de Melo Group, who already owns 2 sugar mills in the region Potential for follow-on acquisitions in the region Obs: Oval shape in map does not indicate property s actual size, but region in which it is located 9

10 Disclaimer Forward Looking Statements This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of BrasilAgro. These are merely projections and, as such, are based exclusively on the expectations of BrasilAgro s management concerning the future of the business and its continued access to capital to fund the Company s business plan. Such forwardlooking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry and are, therefore, subject to change without prior notice. 1