SLC Agrícola (SLCE3) investor relations material

Executive summary

• Net revenue for 1H25 reached R$4.2 billion, up 26.7% year-over-year, with 2Q25 net revenue at R$1.86 billion, up 37.8%, driven by strong soybean and corn yields and prices.

• Adjusted EBITDA for 1H25 rose 55.9% to R$1.5 billion (35.8% margin), with 2Q25 EBITDA at R$556.6 million (29.9% margin), mainly due to higher yields and volumes.

• Net income for 1H25 was R$650.5 million, up 18.2% year-over-year, but 2Q25 net income dropped 56.5% to R$139.8 million, impacted by biological asset and inventory mark-to-market adjustments.

• Strategic land acquisitions and investments, including Sierentz Agro and new irrigation projects, expanded the planted area for 2025/26 by 12.9%.

• ESG initiatives advanced, with awards, a major carbon credit project, and circular economy recognition.

Financial highlights

• Gross margin in 2Q25 was 35.2%, down from 61.5% in 2Q24; operational margin for 1H25 was 31.5%.

• Free cash flow was negative R$2.05 billion in 1H25, reflecting seasonal working capital needs and land acquisitions.

• Dividend payout in 1H25 totaled R$241 million, with a five-year average yield of 4.9%.

• Cash generation in the quarter was negative R$626 million, semester cash generation was R$2.1 billion.

• Gross income in 2Q25 fell 21.1% year-over-year, but soybean gross income surged, offsetting declines in cotton.

Outlook and guidance

• Planted area for 2025/26 is expected to rise 12.9%, with irrigated area expanding by 3,300–3,360 hectares and a long-term target of 53,000 hectares.

• Input purchases for 2025/26 are well advanced: 100% potassium chloride, 95% phosphate, 60% nitrogen, and 91% crop protection secured.

• Hedging for 2025/26 advanced: 56.7% of soybeans, 25% of cotton, and 7.3% of corn production locked.

• Planting for 2025/26 begins in September, with most key inputs already acquired.

• Fertilizer market trends upward, with close monitoring of geopolitical risks; remaining input purchases planned for second crops.