SLC Agrícola (SLCE3) Investor presentation summary

Business overview and strategy

• Operates large-scale farms in eight Brazilian states, producing cotton, soybean, corn, seeds, and cattle, with a hybrid model of owned and leased land targeting diverse markets including trading, food, and textile industries.

• Evolved through three strategic phases: initial land ownership and transformation, accelerated growth post-IPO with leasing and joint ventures, and a current focus on asset-light, technology-driven, and ESG-led operations.

• 63% of the 2025/26 planted area is leased or under joint ventures, reflecting a shift to an asset-light model for capital efficiency.

• Strategic land portfolio redistribution increases exposure to mature, stable Midwest regions, enhancing yield potential and operational resilience.

• Growth in higher value-added crops, especially cotton and soybean seeds, with innovative cotton processing systems and strong expansion in certified seed sales.

Operational performance

• Achieves yields significantly above Brazilian and global averages for soybean, cotton, and corn, driven by advanced agronomic practices and technology adoption.

• Continuous improvements in asset utilization, including reduced tractor HP/ha and increased hectares per employee, boost operational efficiency.

• Maximizes asset use with double-cropping and crop-livestock integration, with 49.7% of first crop area used for second crops.

• Standardized, replicable farm models and robust hedging policies mitigate weather and market risks.

Financial performance

• Net revenue reached R$8.6 billion in 2025, with cotton and soybean as main contributors.

• Adjusted EBITDA for 2025 was R$2.0 billion (31% margin), and net profit was R$482 million (7% margin).

• Dividend yield averaged 5.2% over five years, with R$2.1 billion distributed; 2025 payout ratio was 76%.

• Net debt/EBITDA rose to 1.97x in 2025 and 3.09x in 2Q26, with 78% of debt long-term and a strong asset base (NAV R$27.12/share).

• Share buybacks and land sales support capital allocation and shareholder returns.