Management Report 2020
Management Report 2020
SLC Agrícola
Strategy
Figure 3
Area planted (hectares '000)
450
Strategic phases of SLC Agrícola
400
350
300-
250-
200-
150-
100-
50-
О
1977
PHASE 1
"The Miracle
of Cerrado"
Business model
formation
Foundation till IPO
■100% own area
■Gradual land
transformation
■Land as value reserve
■ Development of
a replicable
production model
2007
PHASE 2
"Arbitrage window
to convert lands"
IPO speeds up
the growth
IPO 2007 to 2015
▪ Aggressive growth
▪ Onset of the
leasing strategy
■ Joint ventures
■Certifications
2015
PHASE 3
"Distance in relation
to the average"
Technology as
"game changer"
To date
■"Asset Light" growth
■ Efficiency and distancing
from the average
■Financial solidity and
Generation of Value for
the Stockholder
■Leadership in ESG
2020
Since our founding, we have understood the importance of agribusiness to society
and worked to build a business model capable of seizing the opportunities that have
emerged in Brazil over recent decades. The capacity to produce grains and fibers with
higher yields and efficiency, ensuring economic
growth aligned with social and environmental re-
sponsibility, is today the industry's main competi-
tive advantage.
In this scenario, technology and digitalization
emerge as determinant factors for driving the com-
pany's growth. Investment in innovative solutions,
supported by connectivity of equipment and crops,
accelerates the improvement in yields and the sus-
tainable use of natural resources.
Our current business model focuses on developed
areas that do not require the suppression of vege-
tation. Approximately 99% of our planted areas are
currently well developed and with maturity of over
three years.
In the 2020/21 crop year, we are concluding our
cycle of expansion through the transformation of
areas so that we can disseminate our commitment
to not opening new areas for agricultural produc-
tion. In the coming years, even without this convert-
ing, we will be able to reach our production and
profitability goals.
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