Management Report 2020

- Management Report 2020 SLC Agrícola Cur- Description rency come at i) Gains/losses on derivative transactions The following table presents the consolidated gains and losses on derivative transactions in the year, grouped by the main risk categories: Gains and Losses recorded in the income Allocated in the gross in- Allocated in the financial in- come at Gains and Losses recorded in shareholders' eq- uity 12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2020 Movement 12/31/2019 Foreign exchange hedge operations Non deliverable forwards R$ (530,881) Trade Finance Contracts R$ Sub-total R$ (530,881) (142,984) (24,050) (167,034) 8,189 (1,599) (63,030) (56,217) (6,814) 8,189 (1,599) (63,030) (56,217) (6,814) Hedge operations for commodities Agricultural commodities swap Cotton R$ Sub-total R$ (726) (726) 50,744 50,744 1 27 (221,076) 1 27 (221,076) (195,981) (195,981) (25,095) (25,095) Interest Hedge Transactions Swap VC+Pré x CDI+Pré R$ Sub-total R$ 119,268 119,268 (8,622) 637 963 (326) (8,622) 637 963 (326) Interest Hedge Transactions Swap VC+Pré x CDI+Pré R$ Swap VC+Pré x CDI+Pré R$ Sub-total R$ Total R$ (531,607) (116,290) 6,204 920 7,124 134,582 413 6,993 6,369 624 5,070 5,070 413 (9,781) 12,063 (271,406) 11,439 624 (239,796) (31,611) j) Management of capital stock The main objective of capital management is to ensure the continuity of the Com- pany's business, maintaining a low leverage policy, thus protecting its capital from government economic policy fluctuations, maximizing shareholder value. The Company manages the capital structure and adjusts it considering the chang- ing economic conditions in the country. To maintain or adjust the capital structure, the Company may adjust the dividend payment policy to the shareholders. There was no change in the dividend policy in the Company's capital management objectives, policies or processes in the period ended December 31, 2020. Short and long-term loans and financing (-) Cash and cash equivalents and short-term interest earn- ings bank deposits (1,319,953) (703,850) (1,604,716) (885,419) Gains and losses on derivatives linked to investments and debt Net debt (92,761) Shareholders' equity Financial leverage index 638,034 2,940,379 21.70% (7,951) (121,794) 845,926 2,784,677 30.38% (6,693) 690,773 3,151,058 21.92% 967,654 2,984,421 32.42% Parent Company Consolidated 12/31/2020 12/31/2019 12/31/2020 12/31/2019 2,050,748 1,557,727 2,417,283 1,859,766 138

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