Management Report 2020
-
Management Report 2020
SLC
Agrícola
The price sensitivity assessment considers as exposure the total estimated revenue (highly probable sales revenue) and the totality of hedge instruments contracted,
generally represented by future sales of agricultural products, in relation to the exposure of the same items sold (hedged highly probable sales revenue).
The following is a summary of the impacts in each projected scenario converted into R$ 5.1967 by the PTAX sale at the end of December 31, 2020:
Income variation highly to price scenarios
Possible scenario (-25%) Probable scenario
Description
Cotton Year 2021
Highly probable income
Highly probble income protected
Net exposure
Change in net exposure
Remote scenario (-50%)
2,051,552
2,051,552
2,051,552
2,051,552
2,051,552
2,051,552
Possible scenario (+ 25%)
Remote scenario (+50%)
2,051,552
2,051,552
2,051,552
2,051,552
Soybean - Year 2021
Highly probable income
995,033
1,140,463
1,285,893
1,431,323
1,576,753
Highly probble income protected
704,173
704,173
704,173
704,173
704,173
Net exposure
290,860
436,290
581,720
727,150
872,580
Change in net exposure
(290,860)
(145,430)
145,430
290,860
Cotton - Year 2022
Highly probable income
1,122,969
1,391,506
1,660,044
1,928,582
2,197,119
Highly probble income protected
585,894
Net exposure
537,075
585,894
805,612
585,894
585,894
585,894
1,074,150
1,342,688
1,611,225
Change in net exposure
(537,075)
(268,538)
268,538
537,075
Soybean Year 2022
Highly probable income
Highly probble income protected
Net exposure
Change in net exposure
693,765
197,367
496,398
(496,398)
941,964
197,367
744,597
(248,199)
1,190,163
1,438,362
1,686,561
197,367
197,367
197,367
992,796
1,240,995
248,199
1,489,194
496,398
e) Interest risk
A portion of the indebtedness related to the Company's export financing operations is linked to pre-fixed interest rates, which is the interest rate used in loans indexed
to the US dollar or euro.
In order to hedge foreign exchange variation on loans, financings and suppliers, the Company carries out hedge operations through swap instruments with first-tier
financial institutions. These operations consist of an exchange of exchange rate and pre-fixed interest rates for interest rate in CDI plus Pre-fixed Rate (passive position).
The value of the principal (notional) and maturity of the swap transaction is identical to the debt flow, which is the object of the hedge. This eliminates the risk of
exchange rate fluctuation.
132View entire presentation