Management Report 2020
-
Management Report 2020
SLC
Agrícola
The Business Plan is constantly updated for analysis of exchange rate risk exposure, considering the following premises: (I) projection of planted area; (II) expected
productivity; (III) prices of commodities, which are quoted in the dollar currency, considering the volume weighted average of sales prices and market prices of the
volume to be sold; and, (IV) distribution of sales in the analyzed periods. After the definition of the Business Plan and the measurement of the previously exposed items,
the total exchange rate exposure is reached.
Based on the cost already formed with the purchase of the main inputs (fertilizers, defensives and seeds) and estimated fixed costs, the expected operating margin is
determined. In this way, the risk management committee executes the parameters described in the risk management policy, with the objective of reducing the standard
deviation of the operating margin defined as a target.
The table below shows the positions, of the Company and its subsidiaries, with the nominal and fair values of each instrument contracted, namely:
Description
Forward contracts (NDF):
Foreign currency - Short position
Maturity in 2020
Maturity in 2021
Maturity in 2022
TOTAL
Currency
Reference value (notional)
12/31/2020
12/31/2019
Currency
Fair value (MTM)
12/31/2020
12/31/2019
USD
369,332
USD
384,710
68,450
USD
47,100
USD
431,810
437,782
R$
61174
R$
R$
R$
(80,586)
3,496
(77,090)
(6,452)
7,911
1,459
The following details the maturity schedule of the derivative operations and
deferred exchange variation, which are framed in the "hedge accounting"
methodology:
Maturity
Currenfy
Forward contracts (NDF)
Up to 03/31/2021
Up to 06/30/2021
R$
(70,300)
R$
(18,233)
Up to 09/30/2021
R$
10,756
Up to 12/31/2021
R$
Up to 03/31/2022
R$
Up to 06/30/2022
R$
Up to 09/30/2022
R$
R$
(2,809)
4,061
(1,316)
751
(77,090)
128View entire presentation