Management Report 2020

Management Report 2020 Message from Management SLC Agrícola The year 2020 will remain unforgettable, one in which the world was stunned by a pandemic (covid-19 that brought major impacts on our lives. With such a huge challenge, an unprecedented opportunity has been placed in front of us to reinvent ourselves and innovate. Our busi- ness and our employees were resilient, overcoming challenges and al- lowing important results for the company in the period. We entered 2021 more strengthened and prepared for the challenges, new or con- tinuous, that this new time will bring. Asset light growth In november 2020, we disclosed to the market through a Material Fact notice the planned business combination with Terra Santo Agro S.A., which was approved by Brazil's antitrust agency CADE and is in the due diligence process. The business is aligned with and accelerates signifi- cantly our Asset Light growth strategy, and will support important syn- ergies given the geographic proximity of the production units of Terra Santa and SLC Agrícola in Mato Grosso state. Based on the current planting intentions for the 2020/21 crop year disclosed by Terra Santa, the potential exists to expand our planted area by approximately 130,000 hectares. Efficiency and distancing from industry average In line with our strategy to maximize operating efficiency, we regis- tered, for the third straight year, a record yield for the soybean crop, of 3,900 kg/ha, 8.1% higher than the initial projection and 15.4% higher than the Brazilian average (Feb/21 estimate from CONAB). Meanwhile, our average yield for cotton (first and second crops) was 1,749 kg/ha, 2.9% lower than the Brazilian average. However, our cost per hectare was more competitive in the period, compared to the Feb- ruary 2021 estimate by CONAB (3.7% lower). Regarding second-crop corn, the yield was 7,333 kg/ha, 34.4% higher than the national aver- age (Feb/2021 estimate from CONAB). Financial Solidity and Creating Value for Shareholders In 2020, Net Revenue surpassed for the first time the mark of R$3 billion, growing 22.1% on 2019. The increase was mainly due to the higher prices of the soybean and corn invoiced, as well as the higher volume of cotton invoiced, compared to the levels in 2019. Adjusted EBITDA set a new record, of R$960.3 million, with adjusted EBITDA margin expanding 2.8 p.p. to 31%. Net Income also set a new record, of R$510.9 million, with margin of 16.5%. The operation delivered, for 6

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