Good morning, everyone, or once again we're gathered here at the earnings call for BrasilAgro. We're disclosing our earnings for the harvest year 25/26 ended on the 30th of June 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, right? 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 6, and throughout the year we saw this below 5, 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, right? 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, right?

Here we're going to show you this photograph. What's most important in the agricultural market is the video, right?

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, but 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 926 million of net revenue, 100 million in adjusted EBITDA, accumulated or accrued profit, 90 million loss in losses, negative, right?

We're going to discuss the detracting factors for this, some crops that were detractors, and 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 at an all-time high harvest, 167,000 ha planted, and the portfolio value of 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, right?

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's been behaving, and what we consider took place during the last period, and how we're 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're 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 3.1 billion, and now we're going to get to 3.34 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've been, and I've been actually using this phrase, right?

Initially the company diversified regions thinking about productivity volatility and commercial marketing. We've been very fortunate in reaping these real estate results with this volatility.

There are different liquidity hubs in Brazil, and since we're positioned in different regions, we've been really taking advantage of this. Then area maturity, this is where we really have a game changer where we where we generate value for shareholders.

We have almost 95 million reais. If we were a company that was just passive, buying mature land, that would be a different scenario.

Here we're 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're 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 fact is the soy price, more recently now at the end, and we're going to get into details about this. Then a third point that's also important and to highlight, which is the efficient way the company has been selling, and if if we have any default in customers, and this was one of these cases, then we brought in the cancellation, right?

Where the part that they that they paid we're going to consider and the part that was not paid was going to give be given back to BrasilAgro. Soon we'll also be announcing new business opportunities as well, and you're going to see it's almost as if we were to buy back land that we sold at 3, 4 years ago, and we're going to sell now.

This was a business that was very good for the company. This gives us a portfolio assessment of 3.2.

Once again, this places us as a very unique company, right? That's searching for ways to generate value to shareholders through land transformation.

The graph on the right is just this evolution of what we've been showing here, and this is not a year where we're assessing with Deloitte. We do this at every 2 years, but this is our internal assessment, but then we're 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 as high, a 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, right?

It's really important to keep this clear in this conversation, right? Then we'll talk about more details about what happened.

We've been actually seeing this rush in the last few days. We consider this mainly due to the funds coming in, especially in the last 3 or 4 weeks or months, and we've seen significant expression.

Then 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, and so we saw cotton reach almost 90 and in the in the last few days, right?

Then once again, cattle raising is an activity that we consider as transitional, but we've 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, right? We're very optimistic.

Then for ethanol, we're portraying a bit of the frustration of the entire sector. Why are why am I talking about this, right?

I don't remember times where petroleum went over $100 a barrel and ethanol didn't 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.

We hope this is equalized and corrected over time, right? Then for sugarcane, this is here a photograph for the year.

We reached almost 14, 14.5, and we've also seen significant recovery now. I always say that sugarcane, if someone asks you what's the recovery factor for the sugar prices now, we have multiple factors, right?

We have El Niño at India in India, we have a reduction in our production in Thailand, we have this beet sugar due to the margins there that were not well. Then we had an excessive Brazilian harvest due to the rain, and so everyone knows that if you have a more humid harvest, there's less chances of having sugar, right?

It's more profitable to produce alcohol. Anyways, it's 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've already seen some positive signs for this. This is an overview of the commodities we operate with over the years.

Next, please. Now the next slide here reflects a bunch of different information and details of what's been going on, and some things I've already discussed from a geopolitical perspective, it's a year with a lot of volatility.

What we've really tried to demonstrate is how the company has been trying, and I always want to reinforce here that we're considering the contribution margin and profitability of those activities, searching for ways to do this in the best manner, right? Here in the first photograph we show you this map and how the the purchases last harvest, this harvest where we operated with about $580, $600, and now we can see that it's around $800, $850 per ton.

All of this is due to the low availability of sulfur, which impacts the production of of phosphorus acid, and that has really been keeping prices at price at levels that are very firm. Our decision process is really considering the exchange ratio that we can have in that operation.

Then chloride, which I think maybe didn't go up as much as phosphorus fertilizers in the last few months, right, with chloride, but we've been trying to position ourselves to capture the best value. The last graph is on urea.

With the war in Iran, there has been a area that's really affected with the fertilizers offering, affecting the production of natural gas, which is the base industry. You have a lot of volatility, and the company kind of took on a new position, take on new positions, and now we resumed this position again after the drop.

We really just want to demonstrate that producing in a country where we have were a major importer of fertilizers has some adversities, but I think the company has been able to learn how to navigate this cost ratio. What we see on the right side is this closed percentage, 70, 70, 70, and that's basically because the summer harvest was already all purchased, and some things that we wait on and expect a bit more is for the second harvest, right?

If conditions are kind of like the price is keeping up as they are, then we should wait and we're going to be gaining cost of capital, right? That's another topic that I think is really important.

We're talking about the cost of capital at about 14%, we need to be very careful with how we buy or anticipate purchases, right? If we consider that the prices are very much discounted, we're going to anticipate the prices, no doubt.

If we understand that prices are moving sideways at a moment like we're experiencing now, it really doesn't make sense to anticipate purchases, right? We're really keeping our eyes open on this point.

The last one is to show you this exchange ratio now and the last recent race for prices basically. We saw this adjustment in the exchange due to the prices of commodities and how they were impacted, right?

As I mentioned, it's been a year of difficulties and adversities where numbers are tough and they give us a bitter taste, right? There's things that are really nice to show, and I think the company has done its homework with the entire team that's very qualified, as well as major changes we had to our teams, and we have a qualified team, but we're we're quick and we have the austerity we need to shift the moving pieces in our team.

We've been reflecting a bit about these changes, right, over the year. Our soy had about 19% productivity and sorry, productivity no, but increase of production.

A lot of this is due to more productivity, not too much from reduction in area. We've also had corn with a lot of productivity and maybe a little less area, but 30% increase in production of corn.

Then beans also have a slight reduction, right? This is worth looking at.

I actually asked the girls to give us a little more details on this number, and we can see we produced less beans because we understood it didn't make sense to allocate capital in such a risky crop. We reduced 70% of our area, and we were so capable of increasing the productivity by almost 40%.

Once again, it's about the right decision-making process, right? In cotton, it's been the same thing.

We had a reduction in the total production harvest to harvest. I think here we had two major decisive factors, especially the harvest frustration that we're going to show you now in these results, and Gustavo will show you everything that happened in the next result.

The cotton last year is not the cotton this year. This cotton is what we're seeing here.

This is the cotton where we had a significant area reduction. We reduced the off-season harvest, and we have a productivity increase of almost 50% year-over-year, right?

It's really worth celebrating, and we really didn't have this increase of productivity combined with the increase in prices, right? All of this is designed considering the rally of commodity prices.

We're going to have an adjusted harvest again when it comes to productivity, as we're showing you here, and no doubt we can definitely benefit from these prices, right? We've been looking at this even yesterday in our company board meeting, and we've already seen soy prices 3 or 4% higher than what we had defined as a target for the year, a important recovery of different prices.

Although we've experienced a slight increase in our in our cost base year-over-year, not very significant, in the soy case, we're just discussing all of the fertilizer rush, and that's going to represent about 2% in the cost per hectare, right? We had an increase of costs at about 100, 100 and some reais per hectare.

The graph on the side is just an evolution in tons, and that demonstrates our capacity as a company to go from 360,000 t to 416,000 t, demonstrating or translating a little bit of what we had showed you on this chart here on the right side. Then here we have this other chapter that I think illustrates what Gustavo will discuss in sequence, and which is all about the numbers we presented in this annual balance.

Especially sugarcane, right? As we had mentioned last year, we had a dual, we were hindered twice, right, with the frost in the state of the city of São Paulo, and that also reflects the delays in the past harvests as well.

This year we've been having over 50% almost of harvesting advances, and we have a lot of adherence between what was projected and what was actually harvested. Before I joined, I was actually talking to my team from the sugarcane crop team, and what was harvest harvest versus what was estimated is super adherent.

We're really optimistic to finish this year with a very positive sugarcane harvest, right? Let's cheer for the price of ethanol to recover.

I think the buffer with the sugar is going to help. It's worth mentioning also that we have this new factor in the ethanol production, which is the sugarcane ethanol, and that's really been impacting this displacement in the price curve.

Then in the bottom you can see cattle raising, and this has we've been bringing in numbers basically of reduction, especially considering the right of preference sale, and we reduced a major volume in cattle raising. When you look at the GMD year-over-year, whenever you have like a big stock shift, you sometimes sell calves that are not ready because you have to release the space on the farm.

We're kind of hindered, but then we have a GMD of about 420 g, and that's pretty much 9 or 8% below what we had in the last harvest. I'm sure that and shareholders are also really happy about this, right, regardless.

This basically happened because of this significant displacement of calves to the market to the farms with the sale of Fazenda Preferência, this farm. This is all part of the game.

This is the game we like playing, and it's just part of life. Then in sequence, we also bring in the maintenance of our planted area with a slight reduction, and this happens mainly due to productivity efficiency considering areas that have maybe marginal contributions and you give them other purposes.

When you look at absolute numbers it may seem like not too much, but when you look at this in soy you have a reduction of 6 to 7% because some of the soy areas were sent out to different crops that had maybe a cost that was a little bit lower, and or maybe some are going to have like vegetation coverage really, because if there's not a good productivity history in a year where you have an El Niño risk, there's really no point allocating capital if you're not going to sell. Then the graph on the right side, I just shared here, there is this variation in soy, basically considering this displacement of areas that we consider historically have been having recurring low earnings.

When you look at some farms, and everyone here has probably already experienced this, you say, "Oh, the farm closed maybe 60 sacks on average, but for that you also signed off for areas that are 50 and 40 or 70." What we're considering here, with the use of AI and this analysis take place a lot quicker, we can cross in a lot of details.

We said, "Well, why is this area always producing below expectations?" Let's, my team, agribusiness team likes a word which is resetting the area.

What does that mean? Does it it make it means having good coverage, and this is what we need to take advantage of in the year where we have low soy prices, right?

Of course, we're always going to be reassessing this. It's not like if if we were to consider this from a commercial perspective, we would be reassessing our numbers now.

It's still really early to discuss this in a year where you have a El Niño risk that's so strong, right? In the next 50 or 60 days, we're going to be assessing this in greater details.

Sugarcane with an increase in area as well. Then we have this displacement of marginal areas of soy, where you consider a level of lower technology, and corn with maybe a lower technology is a little more profitable, but also considering the possibilities of that increasing or improving physical soil conditions, right?

Soil you just plant, plant, plant, but you can't necessarily improve soil conditions, right, when it comes to organic materials, right? Part of this area that I show on the top line was displaced for some crops of corn.

Cotton, once again, we restructured, and so here maybe we need to take a closer look and understand how it's going to behave in the El Niño phenomenon over the next years. Why I'm, sorry, in the next months, not years, and here we're talking about cotton in Bahia and the cotton that's planted in the last half of November and the first half of December.

We have some time to reassess this, and as we've been seeing for the expectations, or if that's going to weaken and show maybe a trend of improvements, right, we can maybe reassess this. This was basically considering two segments: so productive risk, cotton, most of the volume is irrigated cotton, and we reduced a bit of the cotton, but another point which is inherent to the agricultural sector in all of the Brazilian sectors is the cost of capital, which is really high considering a crop that is capital-intensive, and we need to have austerity in this process, right, and understand where we can allocate capital in a more efficient way.

All of this contributes to a little bit of what we expect for the next year. We've seen a year with a recovery in sugarcane, stabilization also in these productivity rates for soy, for example, and everything else that has been discussed so far, right?

For the next page, we're going to just kind of reach the the final comments here, and then Gustavo will get into the numbers, right? We've been very careful to mention two realities, right: the harvest in 25/26 that took place, which is that wonderful harvest with a dollar at 6 and a dollar of almost 5, major volatility, but the company was very efficient in this process, right?

We were able to have a dollar locked in at 5.72, I think treasury led by Ana Paula and Jorge really did excellent work analyzing the currency, right? We were able to close off at a currency rate that was way above this, and it's worth mentioning that the harvest took place 2 or 3 months ago and dollars were already at 5.30 or so.

We're very efficient in this process. We closed a soy rate for Chicago at 10.94.

Cotton was a little bit better, you kept up with this. We were locking in a while back and we had a dollar that was really good in cotton as well.

In the middle of this process, we reduced a bit of the cotton area, so that kind of kept us at that dollar of about 6, considering ACTZ for December that would capture a big forwarding view, and we're kind of selling the dollar to be able to have better price composition, we have a dollar in cotton closed off at 6.05, and a great currency, right? We know another factor that's on our P&L that we monitor month after month is our receivables, and due to the fact that this is connected to the soy prices, we locked in at a receivable dollar of 5.57.

This is a bit of the photograph and the receivables of the sales in the farms with soy in Chicago at 11, right? These are the numbers that are going to be contributing strongly to the numbers Gustavo will show us.

On the right side, as we we can see how the harvest has already been designing itself, right? This is kind of where I get the optimism I mentioned, right?

We have a situation that's very different. Soy has already been locked in over $12 when we had 11 last harvest, almost well, more than 10% in the price, and that's just pure EBITDA.

Cotton, it's still kind of early to get this definition. We were closing cotton back then and that was kind of reflecting the prices still from back then.

For corn, we've already take on some positions of about 10%, let's say, and receivables from farms have already we've already achieved about 30-some percent. In this year, we're really walking hand-in-hand with production.

When you look at the lines in the bottom, you already start seeing the composition of the type of currency we've been closing off at. We have this sold at 12.02 and the dollar below at 5.57.

For cotton, I just mentioned the number on on the top, 74.23, and we already have a dollar sold at 9 at 5.92 for cotton, right? We always have this slight difference between the dollar for the soy and the dollar for cotton, right, because for the dollar for the cotton, you're always selling in the second half of the year, right, with the positions we sell off in October, November, December, right?

Then the receivables are also a very significant line for us: 5.54 already sold, and the dollar in Chicago is also very similar. All of this brings a very positive conclusion, which is the company has been working once again, and I want to remind you that the biggest value creator for shareholders with the transformation of land, and that first slide we showed you the recovery of the productive indexes and the company big focus on this.

Now keeping this recovery of productive indexes and contributing also to a scenario that's a little better, is we we would expect us to have a a positive harvest situation. I think Gustavo also mentioned that some of the things that hindered our balance sheet in this period will contribute to the next balance sheet.

It's kind of like the carryover effect for soy and some other things that happened, they're going to then contribute, right? The delays in the sugarcane harvests and all of this will contribute a bit to the period ahead.

We should expect a recovery in these numbers. You can be sure that we'll have the year where we're really going to set some significant sale impacts, and this is in our DNA.

This year was a year where we weren't able to achieve this due to many factors, but next year I think we're really setting the scene for some sales that will once again bring stability to our operational results from a recurring manner, right? Gustavo, the floor is all yours.

Thank you so much, André. Good morning, everyone.

Thank you so much for your presence and watching the earnings. The results and this fiscal loss of 90 million reais when comparing with the same period...

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Just a second. Hello?

Sorry about that, guys. We had a technical issue here with the connection.

Anyways, the results in the period, we start off with the 90 million reais, 138 million reais were for the same period last year. Here we must also consider in summary that there's an impact in the sugarcane, right?

That was a activity that historically the company always had deviations, right, of 2 to 3% with with a crop that we really believed would be stable, but last year we suffered with the frost that we've already mentioned in the previous quarters in the state of São Paulo, as well as some other issues with fires, wildfires in the north of the country in Maranhão. All of this affected our company results, right?

We've in the 31st of September, we knew we were reaching a excellent soy harvest and corn period. Then after, we'll get into this in the results also when we consider the behavior of these two crops, right?

We normally have these two pillars, right? These two activities in grains added on to the sugarcane, which normally contribute to the production about 150, 200 million reais of EBITDA, considering stability in the productivity historically in the company and margins historically in the company, right?

We always have some kind of volatility related to prices, and we try to mitigate this, right, through derivatives. We're going to show this also with how these company policies have been able to mitigate and deliver margins that are in line with our budgets.

Here, specifically, we can see that the operational EBITDA in the company behaved in a very similar way compared to the same period last year. In the graph at the center with the adjusted EBITDA, you can see that just as soy and corn have this very positive behavior, especially considering a quantity per ton and margin and also costs that were considering prices that were very similar, with an increment in productivity contributing very positively.

Sugarcane, as well as cotton, as André just mentioned with the previous harvest, suffered some quality issues, and that impacted prices a lot. We also had some operational issues, right, in Mato Grosso, where that was a factor also to reduce this these surfaces, right, and start taking on a bit more of a conservative strategy in regards to this crop, right, understanding that it's a crop that has high deployment costs, and with the cost of capital at the moment, we understood that the profitability was not doing well, right?

We see these two activities that are very positive, and other two activities that are very negative, and that generate this adjusted EBITDA impact, let's say, that's about 10 million reais more than last year. The sale of the farm, which in our model is we always have this objective as a company and also as managers of a company, right?

We have the objective of selling farms, and we understood also that it was a moment to have some kind of credit analysis and some opportunities that we had also for a sale. We have an expectation because the market has a lot of liquidity in some regions where we have farms that are kind of ready for sale, but then when we see this period, we understood that with sugarcane kind of similar or having similar behaviors to what we have historically, we would have a pretty good year in our results, right?

When we look at the financial results as well, I think it's worth mentioning, because more and more the cost of capital has reduced the company's earnings, right? Then here when you see this from one year to another, we can see that these financial expenses have been growing, right?

The financial results have been growing like 14 million reais. Then the first line, revenue for financial investments, we really have like a minimum cash position of 100, 140, 160 million reais, and that's applied, invested, and that's been generating 23 million reais.

The cost of capital for the for the loans and the interest we should be paying annually were about 100 million reais. When we see when we look at this, we're talking about 80 million reais almost of net interest.

Now there's this last line with the other revenues and financial expenses last year, the company, just as you have this volatility in in the real, that has also generated some impacts in our results, but sorry, in the revenue. When we get into the costs, we had a lot of fertilizers and chemicals we had bought, and we had understood that there was a opportunity for the real to gain value and appreciate, and that's something we had considered with this commitment also for the payment in September, October, and we were able to have some of these purchases with a real that was below 5 reais, and that generated a result considering the currency variation that was also very important within the company, right?

Then the other points are mark-to-market lines, or the company's balance sheet has a lot of effects, right, with estimates and IFRS standards we have to follow, and sometimes that kind of pollutes our balance sheet a little bit. We understand that these are the three lines that have this cash effect, and this is something that we've been managing in a very efficient manner, right?

Then on the next page, we can see here a bit of the details of what we were mentioning, right? With the soy, we have a volume that is a lot higher than last year.

The price then with the 20 million reais of earnings for the results, that's completely connected to what André was mentioning, especially the currency that we had achieved or we were able to lock in, right? The results of 109 million reais, and that also contributed considering the costs of the crops, right?

This was a crop where we had some initial issues that we had with opportunities also to reduce their weight, let's say, through this currency variation, but also contributing with an increment in the tons and a possibility of having a cost per ton that was really low, and that would help our margins, right? We always talk about 30% would be a good margin for this crop, and corn also in the previous year, we had reduced that a lot because our margins weren't that great, and we can see this through the gross results.

It was a year where we didn't have that many expectations, right, in this harvest 25/26. We incremented this surface a lot more and we saw opportunities to perform some sales with companies, ethanol companies, and we were also able to get some possibilities for setting margins that would be a lot more interesting, right?

That's of course considering a company that normally plans on on surfaces where the cost of opportunity is the coverage, right? We understood that this was a very good year from a result perspective, right?

Then in exchange, we have sugarcane, and we've seen approximately 650,000 t less in regards to what was commercialized in the previous year. Here we have two effects, right: one that I would say is transitional, about 300,000 t, and so that also you can see the results of the previous harvest, and these 300,000 were an important impact, right, due to the rain and other issues.

We've also been reducing this supply and we consider that's really going to impact the results for the next year, which is really something that should have been mitigated, right? I don't know if significantly, but it could have maybe have contributed to a reduction in the fiscal losses in this period, right?

We also have those 300,000 or 350,000 t which were really this frost effect and operational and fire wildfire issues as well. Anyways, it was an activity that normally contributed to this, right, because about 27%, we understand is a very much normal margin, our historical margin in the company, and we've also seen that this year, this contribution margin dropped a lot due to this reduction in our tons.

When we consider the costs of the sugarcane, the cost of fertilizing and making the sugarcane really ready for a new cycle, while you have less tons, you can't really dilute this, right? The company doesn't have a deviation when it comes to the cost per hectare, but with lower production, you do have a significant impact, right?

Here you can see almost 60 million reais less in EBITDA for the company's results. Finally, cotton, here the previous harvest, the harvest we ended, the harvest in September last year, and we finished commercializing it till about June this year, and we had many quality issues and productivity issues as well, and that's what helped us reduce the surfaces.

Although we've also maybe reduced these negative impacts due to the results, I consider that they that this is a crop today that is really being used for irrigated areas that we consider to be mature. We normally have surfaces or areas that are not 100% mature, right?

That considers a investment in area, and so that also generates a difficulty at a moment where we consider interests are really expensive or high, and also where you have a potential of climate issues with El Niño, and so we consider that we should also have be a little more cautious, right? Here all of the cotton that we've been harvesting at this moment, it's really positive, and we can see that this is also going to be a result that will be benefited for the next period.

We also have the company's debt with 1 billion reais, 200 million reais, and receivables for 500 million reais. The receivables have been dropping also due to this to this area that was returned or given back in Bahia, and we understand that this situation with the debt upon EBITDA is really consider that when we project this in the results, and so when you consider this up this receivables this year, we're going to be using to reduce debt, and we also have a strategy to extend this.

Especially at moments when we when we consider all of the the history of what's been going on. The cost so the consider this is pretty high, but we also have our our idea is to pay this, the CRA financial instrument.

We don't want to renew this kind of debt instrument, but we want to make the company a little more leveraged, right? Here we also have another decision that we've also considered, and we've seen management also accompany this, and we understand that we've been building and contributing over the years to a accrued earnings that's been in the company.

We've also been receiving this with the sale of the farm and over 500 million reais. We also have an expectation to continue with this business model, right, that has been successful and has an expectation for prices has been very positive for soy, for corn, and the sugarcane also, and ethanol that's starting to be recovered.

With all of this work, and we've been projecting all of this, right, due to the good harvests for soy, corn, and sugarcane that we've been having. We understand that it's also a year where part of our results or earnings will be intended to reduce our debt, and we're working on a reduction or better allocation of our CAPEX.

During the last 5 years, we had about 150 million reais per year of CAPEX to perform all of the area transformations, right, and implement the irrigation projects, and improve technological aspects, and so bring in new leases, and in the region in Mato Grosso that have been contributing to mitigate climate issues with the portfolio we had, right? The company is preparing for a moment or a future with good productivity and that the business model can really make feasible, right?

Sometimes the photograph is not good, but when we look at the full film, and we look ahead, our expectations we continue to follow this business model, right? We've been talking to investors, over 100,000 individuals.

It's important to mention that they perform the payment of dividends, right? We can see this in the sale of the farm and the accrued results, and we've made the decision to pay not not not that we would like this, right, but it would be not the amount we would like, it would be an amount lower, about 30 cents per share, but what we see and what we would like to demonstrate is our commitment to shareholders.

Next. Then here, just to wrap up, this year we've been completing about 20 years at BrasilAgro, it's our anniversary.

This is a story that began back in 2005, then in 2006, it became concrete, as we became the first company performing an IPO through a business plan, and all of this start off with about 500 million reais. We really believed in this business model that was innovative, and through the company, we've already have over 320,000 ha, we've already sold over 2 billion reais.

This story started off with 500 million reais. We've already paid over 1 billion reais in dividends.

We've already had over we have over 500 employees working, farms, and I think we've always mentioned that we have three pillars, right: the strategic side, the processes, because it's a company that every quarter basically needs to be here showing shareholders how we take care of the the proceeds we manage, and another pillar are the people, right? A lot of people here have been contributing.

We have people that are not around anymore, people that are still around. We have service providers and contractors and people that have really been contributing to continue to design this new story.

Then here you have a link where you can also check out a bit of what's been going on, what's been going on in the last few years in this last year, and so I don't know if André wants to add on. The first 20 years are just 20 years, right?

We can't only look at the photograph, right? It was great because the investor relations area and communication area has been really working on excellent efforts here.

Actually the other day we had a book, and each person's been writing a message in this book to talk about these 20 years, right? I think they were years of many mistakes, but also many rights.

I think we had more measures that we got right than wrong, but no doubt the company created in these 20 years and was capable of building a resilient platform with a efficient management team and everything you guys have been experiencing with us for so many years. I think we prepared the company not for the next 20, but for the next 100 years.

That's how we've been building it, and how we've been working with people, and how we've been taking care of processes from day zero, a company that already went public and had to then build in an ERP and everything. We started off in a very organized manner, and this is, of course, preparing the company for the next 50 or 100 years.

I just want to take advantage of this, and I also want to thank and say I'm really grateful to everyone that contributed in the last 20 years, right, whether they're internal, external, our supporters, our investors, our shareholders, our creditors, banks that trust in our word and what we presented as individuals as well. It's great to see that we are finally seeing this contribution, right?

That's something that excites us, right? A lot of people came in here when they were very young.

We say Gustavo spent 20 years here, I spent 19 here, Ana also about 19 years or so. No doubt, we were able to really build this company that makes us very proud, and no doubt for shareholders as well.

Agribusiness is all about this, right? The other day I was joking about this and someone was asking like, "Hey, what about this crisis in agribusiness?"

If you don't know the crises in agribusiness, you have no idea about what agribusiness is, right? We've already had over 35 years and you have great moments and bad moments, but what's important is to have a company that can be resilient to capture the good moments, right, and survive in the bad moments, and that's what we've built over the past 20 years in our history, right?

Once again, thank you so much for trusting us during these 20 years.

Thank you, André. Thank you, Gustavo.

Now, André already said this, and then after, Gustavo was going to add on to thank you all and thank my team as well, Camila and Daisy. They've planned and worked on this, and one of our skills here is to really be creative and make things happen.

They've really brought this into this moment of 20 years, and I think people that are here that already have a lot of that are almost fixed assets here in the company for so long. We're really excited with this, right, and happy to be completing this journey, right?

If you haven't been on us on with social media, I would like to invite you guys to keep up with us on social media besides our earnings and other bureaucratic issues. We also post content and things about our day-to-day and what's going on in the business and in the background, right?

That's really great to keep up with this. We've already gone over time.

I'm going to go in through Q&A. We have two people which have already raised their hands, and we're going to open up Guilherme's mic for BTG Pactual.

Hi, guys, how's it going? Good morning.

André, Gustavo, Ana, I hope you guys are doing well here. On our side, we have two questions.

The first is about the guidance, right? We wanted your help to understand the assumptions behind this improvement of the cost per hectare that you're estimating for some crops.

We understand that for corn and the off-season, there could be a base effect since the costs were higher than what you guys had budgeted in the beginning, but considering the current scenario that you guys mentioned in the presentation as the price of fertilizers being higher, what is backing this improvement in the costs, right, per hectare? It would be great if you guys could help us understand this a little better.

The second question is about the sugarcane guidance, right? Are you guys estimating a slight reduction and a harvesting area that's pretty much stable?

When we talk to other players in the sector, a lot of people have mentioned that this excessive rain period has also gotten in the way of the sugarcane harvesting, right? I want to understand if this scenario is in some way already being estimated by you guys, or do you think this could be a risk?

How do you see this scenario in the sugarcane sector, please?

Guilherme, as always, you and Tiago are always very surgical in these questions, right? I'm going to start off with the second one and I'm going to let Gustavo help with this one also.

Sugarcane, you're right in stating this. When we look at the big volumes in the company, we have sugarcane in the Midwest and in the Northeast, and believe it or not, at a moment while we talk about this, this is interfering a lot more in the central-south region.

For example, in São Paulo we have sugarcane, but we have 300 and some thousand tons in São Paulo, most of our sugarcane concentration is in Mato Grosso and the Northeast. Then there we had in the Northeast a delay due to the operational issues there at the plant, but we've already resumed normally.

We understand the harvest should take a little bit longer there, and so I think the idea would be if we could wrap up by the 30th of November or even a little bit before. Then in the Midwest, things are doing well.

We've been having an operational capacity that's doing really well there. We also have good capacity.

We're limited to this area. We have about 7,000 some tons that we've delivered, right?

In the state of São Paulo, your question is correct, and there the state is more delayed in conversations with our landlords in the production plants. We understand they're going to perform the grinding and crushing a little more up ahead, but the biggest challenge is there's always a leftover sugarcane from the plant, right, especially in a year where it's really tight and suppliers are going to really have to make a big effort to deliver, right?

We could expect leftovers in the system, but I would expect more coming from suppliers. We should say that in the first part, we consider 625 million, right, about 40-some, and this is mainly due to two effects: the rain effect that has been causing this increase in TCH, but also a harvest that's a little poorer when it comes to ATR, but more TCH definitely.

We also had a cost of capital, that's another effect. In the last year, there was a major reduction in sugarcane harvests, and when you renew sugarcane normally, Brasil plants sugarcane at about 18 months and then it comes back in the next one.

When you don't renew sugarcane, although you have low quantities, you have sugarcane in the system in the next year, and this really contributed this increment, right? We have been foreseeing that, and we actually consider this announcement that's postponing milling a bit more, we should kind of impact sugarcane as we've always mentioned, right?

In the second question about costs, there's two things we should highlight, right? One is scale and the size of the company, and also performing a critical analysis and make a decision.

We bought MAP at about $580, now it costs $840. When you look at a cost spreadsheet by IDEA or whoever else, they're going to be considering the ideal prices.

I think we're very precise in buying at the right moments, and we're even more precise with the model where we structured this purchase, right? We understood that there were chances to have this drop, it wouldn't be different, right?

If we consider an average currency in sales that was higher than what they operated with, we would also operate with using this in our favor. When we used to sell the currency well, we were using this to generate revenue.

When we were buying this currency well, we were using this to reduce costs, right? Over the years, we were able to go buy with a pretty good volume of things we bought, and we bought it with a dollar of 5.50, 5.70, when it reached 5.10, and we were skillful in buying with longer terms.

We were able to pay off these positions and we had a significant reduction in our costs. This is also kind of a scenario factor, but we didn't stop there.

We had structural issues also, and so for a few years we've been mentioning how we've been increasing the production of our own seeds, and this year, once again, we were capable of increasing our own volume of seeds, right? Basically, we have the Chaparral unit there where we invested in a seeds processing unit, and they were achieving about 1,500,000, this year they had almost 3 million.

When we consider this increase in costs, we kind of said, "Look, the company needs to have its own seeds this year," and that also contributed. The decision-making processes, balanced management of the currency reality and the FX, and this Gustavo or Guilherme?

Simply the currency part has a big influence, right, because when we compare, for example, with dollars, this cost for the company has been incremental, right? What we've also been demonstrating here is that we were capable in the last few periods...

Sorry, we are losing Gustavo. He's having some issues.

We can't hear Gustavo. It's great that we know how to plant soy and sugarcane, and we're not the best with IT, but we're going to do better, guys.

Just a second, we're trying to figure out what's going on here with the connection.

Sorry about that, Guilherme, let's go back to your question. No issues.

Sorry about that. Anyways, you can hear us, yeah?

Okay. Just to wrap up, Guilherme, I think that from a cost per hectare perspective, we've been demonstrating that the expectations with the costs have been incrementing marginally.

Another aspect that I think is really important for the company is we've also been selecting the surfaces we've been planting a lot better, right? In the past, we used to implement surfaces because we were just in this process of kind of maturing the lands, and the fertilizers or products we were using had contributed to cost incrementing, right?

I think lately, with this cost of capital, we've been reducing these investments, and we've been able to stabilize these costs a lot more, right? To summarize, what I think is the points that André mentioned are really the main ones here that have been contributing to these costs.

That's very clear. Thank you so much, André, Gustavo, and Ana.

Thank you for all of that as well,

André. We have truthful compliments there.

Anyways, now we're going to move on to Gustavo Troyano at Itaú BBA.

Hi, guys. Good morning.

Thanks for taking my questions here. There's two points I wanted to bring out, and both of them are related to the purchase and sale of farms.

What we noticed this year is you kind of closed with a land mix that's pretty much developed beyond what we're used to seeing, right, close to 55%. That would suggest that you would have a relevant stock of land to sell.

André actually mentioned during the presentation that's kind of your expectation for the next year. My question here is more about how we expect this land mix to develop, and if you could already expect the 1/3, 1/3, 1/3 you're already considering throughout '27, but just to understand what the pace is for the sale of this land, André has mentioned during the presentation.

The second question, which is maybe deriving from the first one, is what's the next step, right, after the sale of this land, right? Because 2027 is going to be a year with a lot of volatility due to El Niño, and so there should be a lot of disparity within the performance and between the companies in different regions, and that could lead to some opportunity to buy land, right?

When you consider capital allocation of the possible sales of farms being prioritizing deleveraging, since the cost of capital is a bit higher, as Gustavo mentioned, and also take advantage of opportunities to purchase land that could appear, how have you been managing this, right, considering this allocation?

Gustavo, how's it going? Thank you for being with us here.

That's someone else that really loves agribusiness, and so I'm going to ask you to visit as well, and last time you came you were looking into sugarcane, right, at the farm. Basically the first question is yes, we've been dislocated, right, due to everything we've already mentioned.

We have liquidity concentrations in certain regions, but no doubt we're going to perform sales in the next period, right? If we're going to be more of a seller or more of a buyer, I think we should be more of a buyer, right?

If we consider a link to your second question, we've been very active, and with you guys at Itaú and BTG and with other financial groups as well. We had this proactive time, quite frequently we were reactive only, and now we have an agenda that's very close to you guys for origination of possible business opportunities we could have providing liquidity and solvency to some creditors.

If I consider that in the mid to long term, we should search for a means to get back, and there's another factor that's very important, right? Gustavo, I think this kind of displays this into 1/3, 1/3, 1/3.

Why is that? Because initially when we used to buy, 100% of the portfolio coming in was to transform, and then you have this maturity curve, right, if there's been 4 or 5 years for this to happen, right?

Then more recently for the purchases in Maranhão, São José and Agrifirma, we bought a portfolio that was kind of in between this maturity process, right? You accelerated this portfolio a little more, and the portfolio is finished more, right?

Could we accelerate sales? That's a decision that we always look at from a profitability perspective, right?

When we understand that that asset is generating this, and so it's not because of an operational problem. That's where we're going to really gear and focus our cannons, let's say, to generate sales liquidity.

That's a good news, right? Because you have some farms where you have a good ROA, and we'd say, "Look, I would like to keep it operating with this kind of ROA."

Then areas where we understand we've already reached the maturity curve, we can bring in what we always mentioned, right, 20, 25% results for that present value. There's no change in strategy.

I think the company will be a company that's going to continue to buy and sell land, and the last 5 years we sold over 2 billion, right? We're not going to sell 2 billion in the next 5, right, but unless we have a major acquisition.

That's expectable, and we always joke about how we need to have the bar open every day buying, selling, and that's how we make money: buying and selling and transforming. Strategic changes don't exist.

What exists is a rebalancing of what came in with the portfolio. That's where you have this discussion that we've had in the recent past of transforming or not transforming the area with restrictions, right, considering the tradings.

We consider that this is kind of balancing out, right, to respect the agribusiness reality that really generates value for society as a whole, right? It's not like a big change where, "Oh, it's going to be a company that's going to be an operator."

No, in our DNA, we don't believe that a pure operation just will bring the profitability that our shareholders hope for. We need to have this real estate factor as well.

That's very clear, André. Thank you for the answers, and I'll wait for the next invitation.

For sure. You can come with us.

We'll be together as well.

All right, we have a last question that was sent in writing. We actually have multiple questions from Mateus Palhinhas, an individual investor, and some we answered throughout the call here.

I'm just going to ask you about the last question here, and that's related to the share price, that's at 19 reais considering an NAV of 38.17, because the company plans to distribute 30 million dividends in reserves. How does the board compare the returns to sell land versus internal values and just buying its own assets with 50% discount?

That's a surgical question there again.

This question could start off the answer saying, "Look, if you just have one little bird, you won't ensure the shift in seasons, right?" When you have a strategic effort, and this comes from productive efforts, generating trust, generating traction among investors, generating recurrence in results and earnings, and a shareholder base that's really active as we've been working on, then we have to look at this from different perspectives, right, for all of the decisions made maximizing returns for shareholders, but not disregarding the different shareholder bases, right?

How sometimes a dividend paid like this as is proposed this year, is more of a symbol than an actual big event or major event, and that demonstrates a recurrence of results and the concern to generate value to shareholders in different lines. I'll give you an example: when we took over management in the company 10 years ago, we had 5,000 shareholders in our base of individuals, and now we reached 138,000, now we have 150 in our individual base.

There's a qualitative value in this that's huge, and it's very difficult, and there's a bit of an intangibility level, but I'm going to translate this to you. Today, I am sure that any shareholder in the company that wants to sell off their stake in the shareholder base, regardless of the percentage, is not capable of modifying the price of the shares because this base has a recurrence phenomenon and it has a strong presence.

These are intangible values. How are we able to achieve this?

By working with individuals that came into the base, right? Maybe an institutional investor is going to say, "Oh, well, isn't it better to buy back 30 million in a portfolio of 3.3 billion?

We would be buying about 0.9%." As we've already done this, we've already bought 10%, we bought back 10% of the company shares, right?

At this moment where you have to weigh in like, "Oh, I'm going to buy 0.9% of the company," the profitability and trust that's going to generate tangibility as well, that's kind of the decision we made, right? When we performed a cash analysis, we could say, "Well, the question could have been more surgical in saying, 'Well, André, maybe it's better to pay the debt than dividends.'"

Well, if we look at the proposal we've set and what we're presenting for the next period, and in the short term we have an investment of about 300, 400 million reais, and we're resuming about 200 and some, we're going to finish with 160, 150 million less in debt in the company because that is hindering the pockets of any sector in Brazil, right, with the interest rates we have. I would say that this decision has no right or wrong.

If we had a cash availability to buy back 10 or 15% of the company, I think your provocation would be correct and we should do this, right? Today, better than just buying back is reducing debt level, and that's kind of what we're focusing on and that's what we believe will bring more value to shareholders.

There's no right or wrong. I think there's a decision that's well thought of and well taken care of, and sometimes you just have to bring in the tangible results and the intangible results, and this sign for the market brings a lot more of that intangible return that becomes tangible when we need it to.

Thank you.

Thank you, everyone, for participating. We're officially wrapping up our call now.

Have a great weekend and Friday, everyone, and we'll be together in the next call. See you.