SLC Agrícola S A : Annual Financial Statements 4Q20

March 22, 2021 at 05:11 pm

Management Report 2020

Porto Alegre, March 17, 2021

SLC AGRÍCOLA S.A. (B3: SLCE3; ADR: SLCJY; Bloomberg: SLCE3BZ; Reuters: SLCE3.SA) announces today its results for fiscal year 2020. The following financial and operating infor-mation is presented in accordance with International Financial Reporting Standards (IFRS). The information was prepared on a consolidated basis and is presented in thousands of Bra-zilian real, except where stated otherwise.

NOTE: 2019 and 2020 refer to the cumulative 12-month periods, from January to December. HA refers to the horizontal percentage variation between two periods and VA refers to the percentage representativeness of the account over a given total.

Click here to also read the Integrated Report, which has more information on the company's strategy and performance in Environmental, Social and Governance (ESG) aspects

Talk to IR:ri@slcagricola.com.br

(55) (51) 3230-7864/7797/7799 Rua Bernardo Pires, 128, 3º andar Bairro Santana - Porto Alegre (RS) CEP: 90620-010

Access our website:http://ri.slcagricola.com.brhttps://www.slcagricola.com.br/

Contents

6 Message from Management
9 Profile
Corporate governance
Risk management
Ethical conduct
Innovation
Strategy
Actions to combat covid-19
19 Market overview Commodities Cotton Soybean Corn

Operating performance 2019/2020 Crop Year 2020/2021 Crop Year

34 Financial performance

Income statement analysis

Statement of cash flow analysis

Hedge position

Return indicators

Sustainability Climate & soil change Water & biodiversity Stakeholder relations

59 Additional information
69 Independent auditors Submission to Arbitration Chamber
Disclaimer
70 Financial statements

Reference index

Figures

Figure 1 | Corporate governance structure ................................................................ 13

Figure 2 | Risk management ........................................................................................... 14

Figure 3 | Strategic phases of SLC Agrícola ................................................................ 17 Figure 4 | Price variations (select commodities), Jan/2020 to Jan/2021……….19

Figure 5 | Cotton prices in international markets and Brazil ................................. 20 Figure 6 | U.S. cotton shipments to china (annual volume committed in last week

of January of each year) .......................................................................................................... 21 Figure 7 | Estimate of cotton production in united states for 2020/21 crop

year .......................................................................................................................................... 21

Figure 8 | World cotton supply and demand .............................................................. 22

Figure 9 | Annual cotton exports, Brazil ...................................................................... 22

Figure 10 | Monthly cotton exports, Brazil .................................................................. 22

Figure 11 | Soybean prices in international market and Brazil ............................ 23

Figure 12 | Prices of soy complex in Chicago, Jan/20 to Jan/21 .......................... 24 Figure 13 | U.S. soybean shipments to China (annual volume committed in last

week of January of each year) .......................................................................................... 24

Figure 14 | Annual soybean exports, Brazil ................................................................ 25

Figure 15 | World soybean supply and demand ........................................................ 25

Figure 16 | Corn prices in international market and Brazil .................................... 26

Figure 17 | Monthly corn exports, Brazil ..................................................................... 27

Figure 18 | World corn supply and demand ............................................................... 27

Figure 19 | Change in net debt/adjusted EBITDA ratio .......................................... 44

Figure 20 | Priority vectors .............................................................................................. 50

Figure 21 | Integrated management system and certificates .............................. 51

Figure 22 | Iniciativas que ampliam o sequestro de carbono ............................... 52

Figure 23 | Total water withdrawal by source ('000 m3) ........................................ 54

Figure 24 | Use of own area ('000 hectares) .............................................................. 55

Figure 25 | Distribution of our workforce in 2020 .................................................... 56

Figure 26 | Frequency rate of accidents with lost time for employees ………….... 57

Figure 27 | Taxa de gravidade de acidentes para colaboradores ........................ 57

Figure 28 | Change in adjusted gross debt (R$ '000) .............................................. 64

Figure 29 | Adjusted gross debt amortization schedule (R$ '000) …………… ..65

Figure 30 | Gross debt by index and instrument ....................................................... 65

Figure 31 | Adjusted gross debt profile ....................................................................... 65

Figure 32 | Dividends ........................................................................................................ 67

Figure 33 | Shares performance - SLC3 versus Ibovespa B3, Feb/20 to Feb/21…...68

Tables

Table 1 | Planted area by crop, 2018/19 vs. 2019/20 ………………………......... 28

Table 2 | Actual yields, 2018/19 vs. 2019/20 ............................................................ 29

Table 3 | Estimated and actual cost of production 2019/2020 ............................. 29

Table 4 | Planted area by crop, 2019/20 vs. 2020/21 ............................................. 30

Table 5 | Estimated yields, 2019/20 vs. 2020/21 ..................................................... 31

Table 6 | Estimated production cost per crop, 2020/21 Crop Year ...................... 32

Table 7 | Actual (2019/20) and estimated (2020/21) production cost………..32

Table 8 | Adjusted EBITDA reconciliation ................................................................... 33

Table 9 | Net revenue ........................................................................................................ 34

Table 10. | Volume invoiced ............................................................................................ 34

Table 11 | Variation in fair value of biological assets .............................................. 34

Table 12 | Cost of goods sold .......................................................................................... 35

Table 13 | Realization of fair value of biological assets .......................................... 35

Table 14 | Gross income - cotton lint ........................................................................... 36

Table 15 | Gross income - cotton seed ......................................................................... 36

Table 16 | Gross income - soybean ............................................................................... 37

Table 17 | Gross income - corn ...................................................................................... 37

Table 18 | Consolidated gross income ......................................................................... 37

Table 19 | Selling expenses ............................................................................................ 38

Table 20 | Administrative expenses .............................................................................. 39

Table 21 | Adjusted net financial income (expense) ................................................ 40

Table 22 | Net income (loss) ........................................................................................... 41

Table 23 | Summarized cash flow ................................................................................. 42

Table 24 | CAPEX ................................................................................................................ 43

Table 25 | Financial net debt .......................................................................................... 45

Table 26 | Hedge position (Mar. 15, 2021) ................................................................. 47

Table 27 | Return on Equity ............................................................................................ 48

Table 28 | Return on Net Assets……… ........................................................................ 49

Table 29 | Returno n Invested Capital ......................................................................... 49

Table 30 | GHG emissions inventory ............................................................................. 53

Table 31 | Planted area - 2020/21 Crop Year ................................................... 59

Table 32 | Planted area - 2019/20 Crop Year ................................................... 60

Table 33 | Land portfolio (17/03/21) .......................................................................... 61

Table 34 | Landbank ......................................................................................................... 62

Table 35 | Machinery base and storage capacity ...................................................... 63

Table 36 | Net asset value - NAV ................................................................................... 63

Table 37 | Proposta de distribuição dos resultados ................................................. 67

Message from Management

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 1,749kg/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

another straight year, positive cash generation, of R$415.1 million, with a low leverage ratio of 0.74x (Net Debt/Adjusted EBITDA).

We ended 2020 with excellent levels of profitability and robust free cash generation. Cash generation in the year enabled the distribution of R$147.5 million in dividends and R$32.3 million in interest on equity, as well as the maintenance of very low financial leverage, which assures us the capacity to grow with financial solidity. A highlight was the signifi-cant increase in another important indicator, Return on Invested Capital, which ended the year at 13.6%, compared to 9.7% in 2019.

Innovation Strategy

In the revision of the 2020 Strategic Planning with the Directors, Of-ficers and Managers, we approved a plan for investments in new busi-nesses with a digital focus that adopt the latest technological trends in our agro-industry. The initiative confers a new mandate to our In-novation Strategy with the aim of renewing the business with a long-term vision, and complements the various efforts already being adopted to reinforce the existing business (early-adopter of new tech-nologies). The vehicle for these investments will be SLC Ventures.

Leadership in ESG

In 2020, we made our first issue of green bonds, in the form Agri-business Receivables Certificates (CRA), with a second-party opinion and report, in the amount of R$480 million. The notes are due in 2025 and all proceeds will be used in eligible projects approved and in-cluded in the Digital Agriculture, Low Carbon and Soil Conservation, and Green Fertilizer programs.

Covid-19

In the face of the new coronavirus pandemic, we take assertive ac-tions in order to minimize the impacts on our employees and our business. One of these important actions was the rapid creation of a Crisis Committee, which was responsible for preparing and moni-toring continuously the "Covid-19 Contingency Plan" and the "Guide to Combating Covid-19". We also created a work protocol for identi-fying suspected cases of Covid-19. We did have cases of Covid-19 among employees, but our operations were not affected and contin-ued normally. During the first half of 2020, a total of R$1.6 million was donated to support measures to combat the pandemic, through the newly created SLC Institute.

Outlook 2020/21 Crop Year

The 2020/21 crop year started with some delay due to below-average rainfall, especially in western Mato Grosso state. However, we set a new record of planted area for the current cycle, 468,200 hectares, which represents expansion of 4.4% on 2019/20. The delay in the start of rains in the Midwest led to a revision of the agricultural plan, in order to optimize the window for planting second-crop cotton and corn. De-spite this, our expectation is positive, especially for the delivery of the expected productivity in soybeans and cotton.

In recent months, international cotton, soybean and corn prices have improved significantly, which, combined with the BRL/USD exchange rate remaining above R$5.00, supported an advance in the hedge

position of all crops. We also made progress in procuring inputs for the 2021/22 crop year. Considering the current scenario for dollar-denom-inated costs and prices, our expectation is for the good levels of prof-itability to be maintained for 2021/22.

Closing Message

The successful execution of our strategy in 2020 reflects our solid pillar formed by People, Technology/Innovation and Processes. The goal of our strategy is to obtain the best business opportunities and to remain a reference in our business of producing food and fibers, while allocat-ing the capital invested efficiently and creating value for our share-holders. All this combined with a strong ESG pillar to protect the envi-ronment and consequently future generations.

We want to thank especially our employees who, despite facing a chal-lenging scenario marked by physical distancing, rapidly adapted to en-sure the continuity of our operations with the same efficiency. Lastly, we thank our other stakeholders for yet another year of success.

The Management

Aurélio Pavinato, CEO from SLC Agrícola

Profile

For 43 years, SLC Agrícola has operated in Brazil in agribusiness, which is one of the most important sectors for sustainable development and that is essential to meeting the world's growing demand for food. Themain commodities we produce (cotton, soybean and corn) on our 16 farms in six Brazilian states form the base of practically all food and textile production chains in the world.

Awards & Recognition

2020 Ranking of Institutional Investor magazine

 Best Company in Agribusiness Sector
 1st place in Sustainability (ESG Metrics), Best CEO, Best CFO, Best IR Team, Best IR Program and Best Analyst Day
 1st and 3rd places in Best IR Professional

Incredible Places to Work - Fundação

Instituto de Administração (FIA) Em-ployee Experience (FEEx)

EstadãoEmpresasMaisAward

(2nd place in Agriculture & Cattle Raising sector)

Largest 500 Companies in the South, 2020 edition (29th place in annual ranking and 9th place among the largest 100 com- panies in Rio Grande do Sul state)

48th edition of Export RS Awards - Brazil-ian Association of Marketing and Sales Leaders (named Highlight in Agribusiness Sector)

Best Companies to Work For (GPTW)

Valor Career- Valor Econômico newspa-per and consulting firm Mercer

Best Companies in Safety & Health Awards 2020 - Brazilian Association of Oc-cupational Safety and Protection Material Industries - ANIMASEG (Best Company in Agribusiness category)

Corporate governance

In 2007, our company became the world's first producer of grains and fibers to go public. Our stocks (SLCE3) are listed on the B3's Novo Mer-cado segment, which includes only companies with the highest levels and special practices in corporate governance. SLC Group is the con-trolling shareholder of SLC Agrícola S.A., with a 53% interest in its capital. Another 45% is freely traded (free-float) on the exchange and 2% make up the current balance of treasury shares.

Since our IPO, we have aligned our practices with the highest standards of corporate govern-ance and upheld ethics and transparency in our relations with all stakeholders connected to our business model. Our corporate governance structure, in combination with the policies and charters of our management bodies, ensure that our business strategy is executed with re-sponsibility, sustainability and a commitment to creating value for shareholders.

In 2020, our Board of Directors approved the creation of the new ESG Committee. Composed of five members, they advise the directors in all environmental, social and governance aspects.

Corporate Governance structure

Click here to learn more about this topic in the SLC Agrícola Governance Report

Risk management

Our Risk Management Policy, in force since 2019, estab-lishes the guidelines for structuring a comprehensive framework that is applicable to all our operations. The doc-ument also consolidates the processes conducted continu-ously by managers to identify scenarios and formulate ac-tions for addressing each risk prioritized.

The key risks we manage include commodity price varia-tions and foreign exchange fluctuations. To respond to this scenario, we practice our hedge strategy, which is guided by our Market Risk Management Policy. The Operating & Risk Management Committee evaluates the company's level of exposure at the start of every quarter and deter-mines the instruments (derivatives) to be contracted for the hedge operation in the period.

Click here to learn more about this topic in sections 4 and 5 of the company's Reference Form

Ethical conduct

Our principles for building relationships based on ethics and integ-rity with all stakeholders are formalized in the Code of Ethics & Con-duct. The application of the Code is supervised by the Compliance area, which also is responsible for implementing and disseminating the Compliance System, which was created in compliance with the Clean Company Law (12,846/2013). The dissemination of this cul-ture of integrity is important for ensuring not only compliance with legal requirements, but also that all activities adhere to the corpo-rate guidelines, policies and procedures.

A key element of this culture is the training courses on the Compli-ance System, which are conducted on-site and through e-learning. In 2020, in view of the need for physical distancing, we adopted a hybrid format with on-site training via videoconference. With this approach, we expanded the percentage of employees trained from 57% in 2019 to 78% last year.

Another prevention front in compliance aspects is the management of risks associated with fraud, corruption, bribery, undue benefits or any other deviation of conduct. We evaluate all operations from this standpoint and identify priority actions to strengthen internal

controls, improve normative instruments and raise awareness among employees as well as train them on these topics.

We also have the Ethics Channel operated by the company Contato Seguro, which is open to everyone for submitting information and re-ports on attitudes that are in breach of the law or our values. All con-tacts are registered via an automated platform, which is managed by the specialized external company. The platform guarantees the confi-dentiality of the information provided by whistleblowers and our policy of non-retaliation, as well as the possibility of anonymous reports.

The analyses of all reports submitted to the Ethics Channel are con-ducted internally, by the Loss Prevention Committee. If necessary, in-teraction with the whistleblower is conducted through the platform, without compromising privacy and confidentiality.

Innovation

Researching, developing and incorporating new technologies and solutions for agribusiness is one of the growth drivers in which we invest to increase efficiency and productivity on our farms. We are a pioneering company (early-adopter) in integrating these technolo-gies, because we believe in the competitive advantages of this oper-ational model.

The AgroExponential Program, in partnership with the innovation consulting firm Innoscience, is one of our fronts for connecting with startups. The second edition, which occurred in 2020, selected six companies to carry out the prototyping of solutions on our farms, for which three rollouts were approved.

The Ideas&Results Program focuses on fostering innovation among our employees. With the support of training and education in inno-vation methodologies, the platform opens opportunities for profes-sionals to suggest improvements and new businesses connected to our challenges. By the end of 2020, nearly 200 ideas had already been presented, six of which already have rollout plans approved, given their success in testing phases and the evaluation of results.

Last year, we also developed a new business model to expand innovation in our business model, with the creation of SLC Ventures to operate in two strategic vectors. The first is for direct investments by the company in startups with innovative solutions and a minimum viable product (MVP). The second vector is for selecting projects with prospects for causing high impacts on development in a controlled environment (ven-ture building).

Strategy

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.

Actions to combat covid-19 pandemic

All our 16 farms remained operational during even the most critical months of the covid-19 pandemic in Brazil. The production of grains was essential for keeping food production chains functioning in or-der to avoid the risk of shortages and of expanding the public health and economic crisis on all continents.

Our operational continuity was ensured by effective and rapid ac-tions taken to ensure the health of employees and of all other people accessing our facilities. We drafted a guide to combat the disease that was distributed to managers at all units and established rigid protocols to be followed for avoiding outbreaks. The various initia-tives included testing employees for covd-19, measuring body tem-perature and evaluating the health conditions of truck drivers and other visitors, intensifying cleaning and hygiene routines in the workplace and making available masks, gloves and hand sanitizer.

We adapted our systems so that corporate teams could work from home and provided training to all employees at our headquarters in Porto Alegre on the correct use of work tools during the physical distancing period. In April, we will launch the Mental Health Cam-paign, which is an internal initiative with lectures by external con-sultants on topics that cover the emotional phases of crisis manage-ment and combatting adverse effects, such as stress, anguish, fear and anxiety.

In October 2020, we started procedures for resuming on-site activities in our offices, with the return of employees who volunteer and are not part of a risk group. In this first moment, only 25% of all professionals was authorized to return to our offices, which were adapted to avoid crowding and transmission risk.

To support civil society in combatting the spread of the novel coronavirus, we donated, through the SLC Institute, R$1.6 million to 18 cities in six different states. Created in 2020, the SLC Institute consolidates the allo-cation of funds for private social investment (learn more on page 59).

Market overview

Commodities

Figura 1

Cotton

The year 2020 was marked by high volatility in cot-

ton prices in the international and Brazilian mar-

kets. In a year marked by the pandemic, assets

were affected at the global level due to the uncer-

tainty inherent to the markets and to the risk-

averse posture adopted by agents in the chain,

which helped to push prices to near their recent

historical lows.

The events that had a significant impact on agri-

cultural markets also collaborated to the scenario

of recovery and higher commodity prices world-

wide. The signing of Phase One of the trade deal

between the United States and China, in which the

Asian country committed to buying agricultural

products from the United States on a large scale,

as well as the monetary policies adopted and con-

sequent reduction in interest rates, were key

measures supporting the scenario of recovery and

higher prices.

Figura 2

Combined with the high volumes of U.S. cotton purchased by China, the scenario of downward revisions to production forecasts in the United States, in which unfavorable weather reduced the crop's out-put by approximately 20% in relation to initial estimates, also was a key catalyst for the structural changes in the cotton price in New York during the year.

The reduction in U.S. production, combined with the expectation of stability in global consumption of the fiber, has been an important factor sustaining cotton prices. The global supply-demand balance should close the current cycle with a shortfall of approximately 2.9 million bales, according to USDA estimates.

Regarding exports in Brazil, the volumes shipped maintained their upward trend over the year, especially in the last quarter, when rec-ord monthly shipments were responsible for sustaining and consol-idating the country's position as the world's second largest cotton exporter.

Brazilian exports ended the year at 2.1 million tons, approximately 30% higher than in 2019.

20% reduction in the U.S yield compared to initial estimates catalyzed structural changes in cotton prices in New York

Soybean

Soybean prices in Chicago and Paranaguá registered similar trends during 2020, in accordance with the different periods ob-served, as shown in Figure 11. Since they hit a low of around 8.50 USD/bushel in April, soybean prices in Chicago have reg-istered a solid and consistent recovery to levels around 14.50 USD/bushel.

The high prices observed in Chicago dur-ing 2020, combined with the premiums paid and local currency depreciation, ena-bled soybean prices to reach levels above those in the same period last year and, more recently, to over 170.00 R$/bag, based on CEPEA data for Paranaguá.

In a year marked by lower prices and a subsequent recovery in soy com-plex prices in Chicago, the prices of soybeans and meal ended the period from January 2020 to January 2021 up over 45%, while oil prices gained around 30%.

The resumption of imports by China driven by the country's domestic demand has been the main factor sustaining prices. This change is es-pecially important after the past cycle marked by the U.S.-China trade war and by African Swine Flu, which contributed to the scenario of de-pressed prices for the commodity in international markets.

The resumption of U.S. soybean purchases by China at volumes above those observed in recent years, based on historical data, also was an important factor in the global commodity market sustaining prices in Chicago.

In Brazil, soybean exports in 2020 maintained their upward trend ob-served in recent periods, with shipments of 82.9 million tons in the pe-riod, consolidating the country's position as an important soybean sup-plier in the international market.

The global supply-demand balance for the current cycle (2020/21) should register a deficit for the second straight year, with consumption expected to outpace production by approximately 8.8 million tons, com-pared to the shortfall of 18.1 million tons in 2019/20.

Corn

Corn spot prices quoted on the CBOT registered significant volatility over 2020, during which, after a downward cycle during April, prices followed a solid path of recovery

and appreciation in both in the international (Chi-cago) and domestic (B3) markets. The period of the sharpest increases in corn prices was the last quar-ter of the year.

In July, August and September, prices on the U.S. exchange showed signs of recovery after the corn planted area in the country was affected by ad-verse weather conditions. Later, in the last quarter of the year, the scenario of firm demand, mainly due to record corn shipments by the U.S. to China, continued to provide support for corn prices in Chi-cago. In Brazil, the market also remained strong over the entire year due to demand from the ani-mal protein industry and from export markets. Corn production regions in the Brazilian South and Argentina faced adverse weather conditions for the development of first-crop corn, with production data still to confirm the volumes produced. Accord-ingly, local supply and demand dynamics, com-bined with the conditions marked by uncertainty in the United States, set the tone for prices in the do-mestic market.

Meanwhile, export shipments from Brazil between January and Decem-ber surpassed 34 million tons, which is above the average volume of the last 5 years, but approximately 20% lower than in the previous cy-cle, which registered record exports.

In the global scenario, the difference in supply and demand should result in a shortfall of 11.8 million tons. The persistence of global def-icits should work to accelerate the growth in consumption and the drawdown in global stocks, which could become a significant factor sustaining future corn prices in the international market.

Operating performance

2019/2020 Crop Year

Planted area and productivity

The planted area contracted by 2.1% from the previous crop year, due to the delay in the start of rains in the state of Maranhão, which post-poned the planting of soybean and consequently reduced the planting potential of second-crop corn.

Commercial soybean | For the third straight year, we set a new yield record, which is in line the Company's current strategy of focusing on maximizing operating efficiency. This yield was 8.1% higher than our initial projection and 15.4% higher than the national average (Feb/2021 estimate from CONAB).

Soybean seed | Production of 373,000 bags of soybean seeds, of which 120,000 were used for internal consumption (as seeds for the 2020/21 crop year) and 128,000 in the verticalized model. In addition, 125,000 bags were sold under the brand SLC Sementes. The germination qual-ity indicator stood at 94.8%.

TABLE 1. PLANTED AREA BY CROP, 2018/2019 VS. 2019/2020

Mix of cropsPlanted Area (hectares)

2018/2019

2019/20201

Cotton

123,727

125,462

28.0

1.4

First-crop cotton

72,852

74,054

16.5

1.6

Second-crop cotton

50,875

51,408

11.5

1.0

Soybean (com + seeds)

243,148

235,444

52.5

-3.2

Corn second-crop

89,312

82,392

18.4

-7.7

Other crops2

1,912

5,270

1.1 175.6

Total area

458,099

448,568

100.0

-2.1

1. Climatic factors may affect the projection of the planted area.
2. Wheat, corn first-crop, corn seed and brachiaria.

VA 19/20

First-crop cotton | Despite the crop's good development, some areas in the states of Bahia and Maranhão suffered water scarcity, with low hu-midity and high temperatures during the crop's planting. As a result, production potential was slightly reduced, leading to production 3.4% lower than the initial projection. However, final production reached 1,779 kg per hectare, 5.4% higher than the yield in the previous crop year.

Second-crop cotton| Second-crop cotton also was affected by water scarcity during the crop's planting and the cotton-ball development phase, manly in the region of Mato Grosso state. The final yield was 1,705 kg/ha of cotton lint, 2.5% lower than the projected volume and 5.7% higher than yield registered in 2018/19 crop year.

Second-crop corn | Second-crop corn ended the period with a yield 3.0% higher than in 2018/19 crop year and 0.7% lower than the projected rate, of 7,333 kg/ha.Compared to the national average, the yield was up 34.4% (Feb/2021 estimate from CONAB).

Actual cost of production

The actual cost per hectare was 5.2% above the estimate, mainly due to the higher USD/BRL ex-change rate compared to the assumption adopted in the budget. The increase was fully offset by rev-enue, in accordance with the company's hedge policy.

TABLE 2. ACTUAL YIELDS, 2018/19 VS. 2019/20

Yields (kg/ha)

Cotton lint 1st cropCotton lint 2nd crop Cotton seed

A. 2018/2019 Crop Year

(actual)

1,688

Soybean (com. + seeed) Corn 2nd crop

1,613 2,090 3,739 7,121

B. 2019/2020 Crop Year (estimated)

1,842

1,749 2,261 3,607 7,385

1,705 2,175 3,900 7,333

TABLE 3. ESTIMATED AND ACTUAL COST OF PRODUCTION 2019/2020

Total (R$/ha)

Estimated 2019/2020

Cotton 1st crop Cotton 2nd crop Soybean

Corn 2nd crop

Total average cost2

8,397 7,727 2,901 2,410 4,368

HA (C/A)HA (B/A)

5.4%

9.1%

5.7% 4.1% 4.3% 3.0%

8.4% 8.2% -3.5% 3.7%

Actual 2019/20201

9,362 8,264 3,015 2,545 4,597

1. Values may change until the end of the cotton processing and the commercialization of the grains.
HA (C/B)
-3.4%
-2.5% -3.8% 8.1% -0.7%
HA
11.5% 6.9% 3.9% 5.6% 5.2%
2. Weighted by areas of the 2019/2020 Crop Year to avoid changes arising from variations in the product mix.

2020/2021 Crop Year

Planted area and productivity

Compared to the initial estimate announced in November 2020, the planted area suffered a slight reduction to 468.2 thousand hectares due to some one-time adjustments to the planning still related to the delay in the start of rains in the Midwest. More details on the planted area are included in the "Additional Information" section of this document.

Commercial soybean | In the Midwest, the rainy season started later than usual, which led to a revision of the agricultural plan. After planting, there was a good distribution of rainfall that supported good crop devel-opment. Note that, in the Northeast, weather conditions were highly fa-vorable as from the start of the cycle. 61.8% of the total area already had been harvested (position at 03/04/2021). To date, the areas are present-ing good potential and the expectation is to achieve the estimated yield.

Soybean seed | The planting of areas allocated to seed production was concluded on December. We currently have 10.4% of the crop harvested (position at 03/04/2021). The areas are presenting good potential and the expectation is for gross production to exceed the budget. We esti-mate total production of 470,000 bags of soybean seeds, of which 120,000 will be used for internal consumption and 150,000 for export under the brand SLC Sementes. For vertically oriented production, 200,000 bags of soybean seeds will be produced.

First-crop cotton | Most of the planted area fell within the ideal plant-ing window, i.e., up to end-December. The areas already are passing from the plant development phase to the flowering phase and present potential to reach the estimated yield.

TABLE 4. PLANTED AREA BY CROP, 2019/20 VS. 2020/21

Planted Area (hectares)Mix of crops

2019/2020

2020/20211

20/21

Cotton

125.462

109.660

23,4

-12,6

First-crop cotton

74.054

78.015

16,7

5,3

Second-crop cotton

51.408

31.645

6,8

-38,4

Soybean (com + seeds)

235.444

229.497

49,0

-2,5

Corn second-crop

82.392

110.670

23,6

34,3

Other crops2

5.270

18.369

3,9 248,6

Total area

448.568

468.196

100,0

4,4

1. Climatic factors may affect the projection of the planted area.
VA 20/21
HA
2. Corn 1st crop (6.391,89 ha), corn seed (460,79 ha), popcorn (911,87 ha), wheat (675,77 ha), cattle (3.526,71 ha), brachiaria seed (6.069,43 ha) and bean (332,14 ha): total of 18.368,60 ha.

TABLE 5. ESTIMATED YIELDS, 2019/20 VS. 2020/21

Yield (kg/ha)

Cotton lint 1st crop Cotton lint 2nd crop Cotton seed

2019/2020 Crop Year

(estimated)

1,842

1,749

2,261

Soybean (com. + seed) Corn 2nd crop

3,607

7,385

7,567

1.1%

-6.3%

-1.8%

4.1%

2.5%

Second-crop cotton| The delay in planting soy-bean due to the delay of rains and consequently of the harvest affected the ideal window for plant-ing second-crop cotton. To optimize the crop's planting potential, we reduced the planted area for second-crop cotton, replacing it with second-crop corn, which has a longer planting window. This reduced the production potential, leading to a yield estimate of 1,638 kg/ha, 6.3% lower than estimate for the previous crop year.

Corn | Regarding the first estimate of productiv-ity, announced in November, there was a small re-duction in the estimate for the second-crop corn, from 7,622kg/ha to 7,567kg/ha, due to the lengthening of the planting period.

Despite the delay due rain, our expectation is to de-liver the disclosed yield for all crops

Actual cost of production

The costs per hectare estimated for the 2020/21 crop year reg-istered an average increase in Brazilian real of 9.1% compared to the actual costs in the 2019/20 crop year, basically due to the depreciation of the Brazilian real against the U.S. dollar in the period, since ap-proximately 60% of costs are denominated in the currency.

9,1% average increase in costs per hectare, driven by the increase in the exchange rate between the 2019/2020 and 2020/2021 crops

TABLE 6. ESTIMATED PRODUCTION COST PER CROP, 2020/21 CROP YEAR

Cotton Soybean

Variable costs Seeds Fertilizers Chemicals Aerial spraying

Fuels and lubrificants Labor

Processing

Maintenance of machines and implements Other

83.1

9.8

21.3

28.6

1.6

2.9

0.9

8.3

3.5

Fixed costs Labor

6.2 16.9

Depreciation and amortization Amortization of the right of use - Leases Other

7.3 4.5 3.1 2.0

77.5

81.8

14.7

21.3

24.3

1.0

3.3

0.7

2.6

4.3

5.3 22.5

9.3 6.2 4.5 2.5

TABLE 7. ACTUAL (2019/20) AND ESTIMATED (2020/21) PRODUCTION COST

Total (R$/ha)

Cotton 1st crop Cotton 2nd crop Soybean

Corn 2nd crop Custo médio total2

2019/20201 ActualCorn

20/21 Average 19/20 Average

18.2

36.4

14.5

1.5

3.0

0.4

2.4

3.2

2.2 18.2

7.4 4.5 4.3 2.0

5.1 4.8

3.8 5.1

2.3 2.5

2020/2021 Estimated

9,362 8,264 3,015 2,545 4,735

9,899 9,306 3,300 2,858 5,168

1. Values may change until the end of the cotton processing and the commercialization of the grains.
80.8 79.5
12.4 12.1
22.5 22.1
25.3 23.8
1.4 1.7
3.0 3.6
0.6 0.6
5.8 6.2
3.7 4.1
6.1 5.3
19.2 20.5
8.0 8.1
2. Weighted by areas of the 2019/2020 Crop Year to avoid changes arising from variations in the product mix.

5.7% 12.6% 9.5% 12.3% 9.1%

Financial performance

Income statement analysis

Adjusted EBITDA

In 2020, Adjusted EBITDA amounted to R$960.3 million, representing a record high. Considering only EBITDA from Agricultural Operations (given that the result for 2019 includes a land sale oper-ation), Adjusted EBITDA grew by 34.2% on the prior year. This performance was in large part due to the higher prices for the soybean and corn invoiced.

Note that, with the adoption of IFRS 16, lease costs were excluded from adjusted EBITDA. A total of R$129.6 million was paid for leases in 2020, com-pared to R$78.9 million paid in 2019.

TABLE 8. ADJUSTED EBITDA RECONCILIATION

(R$'000)

Net revenue

(+) Changes in fair value - biological assets (-) Cost of products sold

Cost of products

Realization of fair value - biological assets

(=) Gross income

(-) Sales expenses

(-) General and administrative expenses

General and administrative

Profit sharing

(-) Management compensation

(-) Other operating revenue (expenses)

Land sale

Other operating revenue (expenses)

(=) Income from activity

(+) Deprecetiation and amortization EBITDA

(-) Changes in fair value - biological assets3 (+) Realization of fair value - biological assets4 (+) Settled fixed assets2

(+) Other transactions - fixed asset2

(+) Land sale cost

(+) IFRS 16 adjustment - retained profit5 (+) IFRS 16 adjustment - amortization5

Adjusted EBITDA (agriculture operation + land sale)1 e 2 Adjusted EBITDA Margin (agriculture operation + land sale)1 e 2

2019 2,535,905 504,751 (2,257,472)

2020 3,097,547 775,534 (2,802,782)

(1,733,206) (524,266)

(2,051,786)

(750,996)

783,184 (152,972) (89,324)

1,070,299 (173,964) (115,452)

(63,236)

(26,088)

(13,827) 31,651 24,712 6,939 558,712 105,810 664,522 (504,751) 524,266 12,228 425

- 14,763 780,930 119,686 900,616 (775,534) 750,996 8,067 2,455

(70,058)

(45,394)

(14,716) 14,763

36,029 19,466 43,336 795,521 31.4%

- - 73,663 960,263 31.0%

Adjusted EBITDA (agriculture operation)1 e 2

715,314

960,263

34.2%

Adjusted EBITDA Margin (agriculture operation)1 e 2

28.2%

31.0%

2.8p.p

HA 22.1% 53.6% 24.2% 18.4% 43.2% 36.7% 13.7% 29.3% 10.8% 74.0% 6.4% -53.4% -100.0%

112.8% 39.8% 13.1% 35.5% 53.6% 43.2% -34.0% 477.6%

-100.0% -100.0% 70.0% 20.7% -0.4p.p

1. Excluding the effects of Biological Assets, as they do not represent a cash effect. | 2. Excluding the settled fixed assets and adjustments to IFRS 16. | 3. Change in the fair value of Biological Assets (explanatory note DF 32). | 4. Realization of fair value Biological Assets (explanatory note DF 31). | 5. Amortization of the right-of-use related - leases.

Net revenue

In 2020, net revenue surpassed the mark of R$3 billion for the first time ever, representing growth of 22.1% on 2019. The increase was supported mainly by the higher prices invoiced for soybean and corn as well as the higher volume of cotton invoiced compared 2019.

The calculation of Variation in Fair Value of Biological Assets ("VFVBA") reflects the estimated gross margin (sale price at farm less unit costs incurred) of crops presenting significant biological transformation in the calculation period. In the year, VFVBA was 53.6%, higher than in 2019, explained by the expectation of higher margins in the 2019/20 crop year compared to the 2018/19 crop year.

TABLE 9. NET REVENUE

(R$'000)

2019

Net revenue

Cotton lint Cotton seed Soybean Corn Other

FX hedge results

2,535,905

1,212,573

77,154

1,036,218

253,376

72,874

(116,290)

2020

3,097,547

1,697,671

156,269

1,291,803

383,504

99,907

(531,607)

TABLE 10. VOLUME INVOICED

(Tons)

Volume invoiced

2019 2,004,703

Cotton lint Cotton seed Soybean

185,374 234,986 898,368

215,965 281,613 899,278

Corn Other

634,644 51,331

662,840 48,265

2020 2,107,961

TABLE 11. VARIATION IN FAIR VALUE OF BIOLOGICAL ASSETS

HA 5.2%

16.5% 19.8% 0.1%

4.4% -6.0%

22.1%

(R$'000)

2019

2020

102.5%

40.0%

Var. Fair Value - biological assets Cotton lint

357.1%

24.7%

51.4%

37.1%

Cotton seed Soybean Corn Other

504,751

224,433

15,411

229,668

17,933

17,306

53.6%

33.0%

83.0%

37.4%

247.7%

310.1%

Cost of goods sold

TABLE 12. COST OF GOODS SOLD

(R$'000)

Cost of goods sold Cotton lint

2019

(1,733,206)

(762,874)

Cotton seed Soybean Corn Other

(61,257)

(644,331)

(198,182)

(66,562)

TABLE 13. REALIZATION OF FAIR VALUE OF BIOLOGICAL ASSETS

(R$'000)

2019

Realization of fair value of biological assets Cotton lint

(524,266)

(254,413)

Cotton seed Soybean Corn Other

(15,898)

(217,389)

(19,593)

(16,973)

(2,051,786)

(80,123)

2020

(750,996)

18.4%

24.0%

60.2%

16.1%

8.3%

In 2020, cost of goods sold increased 18.4% in relation to 2019, reflecting the higher vol-umes invoiced and the higher unit costs, mainly due to the Brazilian real depreciation. This increase was partially offset by the higher yields in the 2019/20 crop year com-pared to the 2018/19 crop year.

20.4%

224.6%

297.9%

43.2%

10.6%

32.8%

46.0%

The Realization of Fair Value of Biological As-sets (RFVBA) is the corresponding entry to Variation in Fair Value (calculated upon har-vest) and is recognized as products are in-voiced. In 2020, RFVBA was 43.2% higher than in 2019, due to the higher margin esti-mated upon the recording of fair value of bi-ological assets.

Gross income by crop

To contribute to a better understanding of margins by crop, in this section the gain (loss) from currency hedge is allocated among cotton, soybean and corn.

Cotton lint and cotton seed| In 2020, unit gross in-come from cotton fell 21.8% from 2019, due to the 3.1% reduction in unit price combined with the 6.4% increase in unit cost. The latter factor reflects the in-crease in average cost and decrease in average yield per hectare of cotton invoiced during the year (37% in 2018/19, 63% in 2019/20) compared to 2019 (41% in 2017/18, 59% in 2018/19).

Cotton seed unit gross income increased significantly in comparison with 2019. Despite the higher unit cost, this performance is mainly due to the increase in unit price, of 69.2%, reflecting the domestic de-mand for animal food supplements and biodiesel pro-duction.

TABLE 14. GROSS INCOME - COTTON LINT

Cotton lint

Volume invoiced Net revenue Result of FX hedgeTon R$'000 R$'000

Net income adj. for the result of FX hedge R$'000

Unit price Total cost Unit cost

Unit gross income

TABLE 15. GROSS INCOME - COTTON SEED

Cotton seed

Volume invoiced Net revenue Unit price Total cost Unit cost

Unit gross income

185.374 1.212.573 (61.699)

R$/ton R$'000 R$/ton R$/ton

Ton R$'000 R$/ton R$'000 R$/ton R$/ton

1.150.874

6.208 (762.874)

(4.115) 2.093

2019

234,986

77,154

328

(61,257)

(261)

215.965 1.697.671 (398.374)

1.299.297

6.016 (945.782)

(4.379) 1.637

2020

281,613

156,269

555

(98,128)

16,5% 40,0% 545,7%

12,9%

-3,1% 24,0% 6,4% -21,8%

19.8%

102.5%

69.2%

60.2%

(348) 207

33.3% 209.0%

Soybean | In 2020, soybean unit gross income increased 41.1% from 2019, due to the better average invoiced prices.

Corn | In 2020, 93% of the corn invoiced was produced in the 2019/20 crop year. The 162.7% increase in unit gross income reflects the better invoiced prices, with this factor partially offset by the increase in unit cost.

Consolidated | To support the analysis of consolidated Gross Income, we excluded the effects from Biological As-sets (Variation and Realization of Fair Value) to show the actual margins of products invoiced in the period. Gross in-come grew 30,3% in 2020 compared to 2019, due to the higher unit gross income from soybean and corn, which was partially offset by the lower income from cotton.

TABLE 18. CONSOLIDATED GROSS INCOME

(R$'000)

Gross income Cotton lint Cotton seed SoybeanCorn OtherBiological assets

2019 783,184 388,000 15,897 345,129

2020 1,070,299 353,515 58,141 487,958

47,361 6,312

(19,515)

130,227 15,920

24,538

TABLE 16. GROSS INCOME - SOYBEAN

Soybean

Volume invoiced Net revenue Result of FX hedge

Net income adj. for the result of FX hedge Unit price

Total cost Unit cost

Unit gross income

TABLE 17. GROSS INCOME - CORN

Corn

2019

2020

Ton R$'000 R$'000 R$'000 R$/ton R$'000 R$/ton R$/ton

1,036,218

898,368

1,291,803

(46,758)

989,460

(106,204)

1,185,599

1,101

(644,331)

(697,641)

(717) 384

(776) 542

2019

2020

HA 36.7% -8.9% 265.7% 41.4%

Volume invoiced Net revenue Result of FX hedge

Net income adj. for the result of FX hedge

175.0% 152.2%Unit price Total costUnit cost

n.m

Unit gross income

Ton R$'000 R$'000 R$'000

634,644 253,376 (7,833) 245,543

662,840 383,504 (23,165) 360,339

0.1%

24.7%

127.1%

19.8%

19.7%

8.3%

8.2% 41.1%

4.4% 51.4% 195.7% 46.8%

R$/ton R$'000

387 (198,182)

544 (230,112)R$/ton R$/ton

(312)

197 162.7%

(347)

40.6% 16.1%

11.2%

Selling expenses

In 2020, selling expenses increased 13.7% from 2019, mainly due to export expenses, given the higher volume of cotton invoiced and the depreciation in the Brazilian real against U.S. dollar in the period, since these amounts are denominated in foreign cur-rency.

TABLE 19. SELLING EXPENSES

(R$'000)	2019	2020	HA
Freight	58,191	63,602	9.3%
Storage	32,458	36,424	12.2%
Commissions	13,359	13,979	4.6%
Classification of goods	2,070	2,130	2.9%
Export expenses	28,535	40,228	41.0%
Other	18,359	17,601	-4.1%
Total	152,972	173,964	13.7%
% Net revenue	6.0%	5.6%	-0.4p.p.

Administrative expenses

Administrative Expenses (excluding amounts related to the Profit Sharing Program) in-creased 10.8% in 2020 compared to 2019. The main variations are explained below:

(i) increase of 22% in personnel expenses, mainly due to adjustments to the In-formation Technology team to support the automation of processes;
(ii) increase in Expenses with Contribu-tions and Donations, due to the sup-port of health institutions for invest-ments in initiatives to combat covid-19 in the first half and in the last quarter of the year (donations with tax incen-tives);
(iii) increase in expenses with Communica-tions, due to costs related to the mi-gration to a home-office model in view of the pandemic.

TABLE 20. ADMINISTRATIVE EXPENSES

(R$'000)

2019

Expenses with personnel Fees

Depreciations and amortizations Traveling expenses

Software maintenance Marketing /Advertisement Communication expenses Rentals

Tax, labor and environmental conting. Electricity

Taxes and others fees Contributions and donations Other

31,952 5,058

1,897

2,694

6,161

2,674

2,707

904

1,734

193

1,275

2,322

Subtotal % Net revenue Profit sharing Total

3,665 63,236 2,5% 26,088 89,324

3,073 70,058 2,3% 45,394 115,452

2020

38,989 5,877

2,094

1,176

22.0% 16.2%

10.4%

-56.3%

-17.4%

0.7%

40.3%

43.0%

-89.3%

-9.3%

4.5%

84.5%

-16.2% 10.8% -0.2 p.p. 74.0% 29.3%

Net financial income

Since the Company's dollar-denominated debt is swapped to BRL (in line with the Risk Management Policy), the exchange variation on such debt does not affect financial income (loss) when we analyze aggre-gated figures, since any gains or losses on such debt from FX variation are offset by proportionate gains/losses in the respective swap.

In 2020, Adjusted Net Financial Income (Loss) decreased compared to 2019. The main impact refers to the interest line, mainly due to the reduction in adjusted net debt during the year (vs. 2019) and the de-cline in the CDI rate in the period.

TABLE 21. ADJUSTED NET FINANCIAL INCOME (EXPENSE)

The increase in Adjustment to Present Value of Leases was due to the lengthening of the terms of certain agreements and to the increase in the price of the soybean bag in BRL (adjustment index adopted in agreements).

In 2020, there also was an increase in the line Other financial income (expenses) related to the recognition of expenses with PIS/COFINS tax on financial income.

(R$'000)	2019	2020	HA
Interest	(101,197)	(53,637)	-47.0%
FX variation	5,940	28,775	384.4%
Monetary variation	139	-	-100.0%
Adjust. to present value of leases (IFRS 16)	(47,607)	(61,106)	28.4%
Other financial income (expenses)	(1,325)	(5,783)	336.5%
Total	(144,050)	(91,751)	-36.3%
% Net revenue	5.7%	3.0%	-2.7p.p.
40

Net income (loss)

In 2020, net income reached R$510.9 million, growing 74.4% from 2019 (considering only the result from agricultural operations). The increase was mainly due to the higher gross income from soybean and corn, which was partially offset by the lower gross in-come from cotton.

TABLE 22. NET INCOME (LOSS)

Net margin ended the year at 16.5%, expanding 5.0 percentage points from 2019.

(R$'000)	2019	2020	HA
Income before taxes on profit	414.662	689.179	66,2%
Income Tax and Social Contribution on profit	(99.621)	(178.231)	78,9%
Consolidated Net Income for the Period	315.041	510.948	62,2%
Assigned to members of the parent company	311.514	488.674	56,9%
Attributed to non-controlling shareholders of the company	3.527	22.274	531,5%
% Net Margin	12,4%	16,5%	4,1p.p
Net income of land sale	22.148	-	-100,0%
41

Net income of agricultural operation

292.893

510.948

74,4%

Net income of agricultural operation

11,5%

16,5%

5,0p.p

Statement of cash flow analysis

In 2020, free cash generation was R$415 million, more than double the amount in 2019, mainly due to the strong growth in operating cash generation supported by the higher gross income from soy-bean and corn.

TABLE 23. SUMMARIZED CASH FLOW

(R$'000)

2019

Cash generated in operations Change in assets and liabilities Net cash in investment activities In fixed assets

In intangible assets Receipt for land sold Land return payment Free cash submitted

Change in fin. invest. account1 Leases paid2

Share buyback

CRA expenditure payment Adjusted free cash flow

778,746 (245,880) (161,005)

(235,175)

(5,746) 80,621 (705) 371,861 (74,436) (78,929)

(5,423) 213,073

2020

1,155,649 (370,788) (169,846)

(190,129) (21,654) 42,643 (706) 615,015 (55,329) (129,634)

(268)

(14,700) 415,084

48.4% 50.8% 5.5% -19.2% 276.9% -47.1% 0.1% 65.4% -25.7% 64.2%

100.0%

171.1% 94.8%

1. The variations in said account have no cash effec.
2. Due to the adoption of IFRS 16, lease payments are now accounted for in the Financing Activities section. However, it must be considered as an operating cash disbursement.

CAPEX

In 2020, we invested R$234.2million, 15.3% less than 2019. The three main lines of investment were:

TABLE 24. CAPEX

	Machines, implements and equipment \| R$92 million, repre-
(R$'000)	2019	2020	HA
senting 39.3% of total. In line with our efficiency increase strat-
Machines, implements and	109,101	91,999	-15.7%
egy, we maintained the investments in new technologies that con-
equipment
tribute to optimize the use of resources and help improve the ag-
Land acquisition	3,072	102	-96.7%
ricultural potential of cultures. For instance, we acquired more
Soil correction	42,772	56,156	31.3%
sensor units that are coupled to the sprayers for local herbicide
Buildings and facilities	49,575	22,154	-55.3%
application, generating savings in defensives. In addition, the
Cotton processing plant	33,710	3,687	-89.1%
technology allows applications directed to the culture line, both
insecticides and fungicides, in the initial phases of cultivation.	Grain warehouse	1,763	2,380	35.0%
Soil correction \| R$56.1 million, 31.3% higher than 2019, aim-	Soil cleaning	3,630	20,009	451.2%

ing at maintaining the soil's productive capacity.	Vehicles	4,029	2,506	-37.8%
Works and installations \| R$22.1 million, representing 9.5% of	Aircrafts	7,542	21	-99.7%

the year's investments. Some adequations were maid in our	Software	9,798	21,111	115.5%
units, such as expanding grain expedition in processing and	Improvements in own	2	39	n.m
storage units at Paiaguás Farm and the expansion of the cot-	properties
ton processing unit at Pantanal Farm. We also made several	Improvements in third	1,917	1,324	-30.9%
works at seats, like machinery shelters, fertilizer deposits, op-	parties' properties
erational accommodation, implementation of fire protection	Buildings	-	106	100.0%
systems and bio-factories, among others. In 2020, we also ini-	Other	9,620	12,652	31.5%
tiated infrastructure works to support the crop-livestock inte-	Total	276,531	234,246	-15.3%
gration project.
43

Debt

Adjusted Net Debt ended 2020 at R$708 million, decreasing R$265.3 million compared to 2019. The reduction is explained by the strong free cash generation in the year, of R$415.1 million.

Of this free cash, R$147.5 million was used to pay dividends (for fiscal year 2019) and R$32.3 million to pay interest on equity (for fiscal year 2020).

Note that, in November, the Company successfully placed its third CRA issue, in the amount of R$480 million, with interest of IPCA + 3.6726% p.a. (with a swap operation to convert IPCA + 3.6726% p.a. to CDI + 1.85% p.a.) and amortizations in the fourth and fifth year, which length-ened the debt maturity profile at an attractive cost.

TABLE 25. FINANCIAL NET DEBT

Consolidated
2019	2020
73.235	57.053
73.235	57.053
1.792.631	2.377.936
108.483	12.186
561.447	841.616
413.490	577.936
111.422	-
597.789	946.197
1.865.866	2.434.989
(+/-) Earnings and losses on derivatives linked to Investments and debts2	6.691	121.794
(=) Gross debit (adjusted)	1.859.175	2.313.195
(-) Cash	885.418	1.604.716
(=) Net debit (adjusted)	973.757	708.479
EBITDA in the past 12 months	795.521	960.262
Adjusted Net debt/Adjusted EBITDA	1,22	0,74
1. Final interest rate with swap.
2. Operations with derivative gains and losses (note 25, letter "e", of FS).
3. The total debt is different from the accounting position due to the costs of transactions with CRA, see note 18 of FS.
45

Credit line

(R$'000)

Average annual interest ratesIndexer

2019

Invested in fixed assets Finame - BNDES

Pre, Currency Baskets

Invested in the working capital Rural Credit

CRA

Working Capital

Pre CDI1 CDI1

Financing for Exports Financing for Export Total indebtedness3

Pre CDI1

5,4% 6,0% 4,4% 5,1%

2020

6,5% 5,1% 5,0%

5,4% 4,3% 2,9% 3,1% -

3,2% 3,1%

Hedge position

Currency and agricultural commodity hedge

The company's sales revenue is generated mainly from the sale of ag-ricultural commodities, such as cotton, soybean and corn, which are quoted in U.S. dollar on the foreign exchanges Chicago Board of Trade (CBOT) and Intercontinental Exchange Futures US (ICE). Therefore, we are actively exposed to variations in foreign exchange rates and in the prices of these commodities.

To protect from currency variation we use derivative instruments, with the portfolio of these instruments basically comprising non-deliverable forwards (NDFs). In line with the Company's Risk Management Policy, whose purpose is to obtain a pre-established Adjusted EBITDA margin with a combination of factors such as Price, Foreign Exchange and Cost,most of the instruments for protecting against commodity price varia-tion are accomplished through advanced sales directly with our clients (forward contracts). We also use futures and options contracts negoti-ated on the exchange and swap and option transactions contracted with financial institutions. The mark-to-market adjustments of future, swap and option transactions are recorded under financial income (ex-pense).

The hedge position for commodities (in relation to the estimated total volume invoiced) and currency (in relation to the total estimated reve-nue in U.S. Dollar) is shown below, broken down by commercial hedge and financial hedge and updated as of March 15.

TABLE 26. HEDGE POSITION

FX hedge | SoybeanCrop Year

% R$/USDCommitments1

2019/2020

100.0 4.4814

2020/2021

2021/2022

67.5

5.0885

9.8

Ano agrícola

5.6104

USD/bu2

Commitments1

Commodity hedge | Soybean

2019/2020

2020/2021

100.0 10.29 -

56.7 10.92

15.9

2021/2022

20.6 11.03

14.4

FX hedge | CottonCrop Year

% R$/USD Commitments1

2019/2020

96.4

4.4476

2020/2021

2021/2022

69.8

5.3236

15.4

Ano agrícola

5.8486

US¢/lb2 Commitments1

Commodity hedge | Cotton

2019/2020

2020/2021

98.7

70.89

71.6

66.27

2021/2022

41.3

74.32

FX hedge | CornCrop Year

% R$/USD Commitments1

2019/2020

100.0

4.4681

2020/2021

2021/2022

59.7

5.2383

24.8

Ano agrícola

5.6672

R$/bag3 Commitments1

Commodity hedge | Corn

2019/2020

1. Commitments for payment of securities fixed in US dollars, natural hedge with payments of land and leases in soybean bags.
2. FOB Porto base prices at our production units are also influenced by transportation expenses and possible quality discounts.
3. Farm price.

2020/2021

100.0

2021/2022

61.9

35.38

40.0

37.29

49.82

Return indicators

The company understands that the calculation of return on equity, return on net assets and return on invested capital must consider, in addition to the net result for the period or operating result for the period, the net annual appreciation (based on the annual Deloitte Touche Tohmatsu Consultores Ltda's independent report)

13.6% return on equity (+ 4.9 p.p.)

9.9% return on net assets (+ 3.3 p.p.)

of the land value.

12.9% return on invested capital (+ 3.7 p.p.)

TABLE 27. RETURN ON EQUITY

(R$'000)	2014	2015	2016	2017	2018	2019	2020
Net revenue1	70	121	16	289	405	293	511
Net land appreciation2	428	140	199	19	110	142	216
Subtotal	498	261	215	308	515	435	727
Shareholders equity3	3,771	3,911	4,346	4,438	4,641	4,973	5,361
Return	13.2%	6.7%	4.9%	6.9%	11.1%	8.7%	13.6%

1. Even in periods that contemplate net results from land sales, this analysis considers only the profit from the "agricultural operation", since the gains from land appreciation are being considered in a specific line.

2. Based on an independent report (Deloitte), updated in October 2020; net of tax.
3. Adjusted by land appreciation

TABLE 28. RETURN ON NET ASSETS

(R$'000)	2014	2015	2016	2017	2018	2019	2020
Net revenue1	70	121	16	289	405	293	511
Net land appreciation2	428	140	199	19	110	142	216
Subtotal	498	261	215	308	515	435	727
Net assets	4.859	5.005	5.026	5.097	5.443	6.551	5.964
Working capital	733	739	561	613	603	912	1.150
Fixed assets3	4,126	4,266	4,465	4,484	4,840	5,639	6,202
Return	10.2%	5.2%	4.3%	6.0%	9.5%	6.6%	9.9%

2. Based on an independent report (Deloitte), updated in October 2020; net of tax.
3. Adjusted by land appreciation

TABLE 29. RETURN ON INVESTED CAPITAL

(R$'000)	2014	2015	2016	2017	2018	2019	2020
Operating result1	190	285	110	513	657	536	780
IRPJ tax	21.3%	27.3%	0.0%	26.3%	30.5%	24.0%	26.0%
Adjusted IR	(40)	(78)	20	(135)	(200)	(129)	(203)
Adjusted operating income	150	207	130	378	457	407	577
Net and land appreciation2	428	140	199	19	110	142	216
Operating income with Lands	578	347	329	397	567	549	793
Invested capital	4,731	5,005	5,255	5,104	5,584	5,947	6,154
Gross debt (ST and LT)	1,332	1,795	1,974	1,578	1,586	1,859	2,313
Cash	372	701	1.065	749	643	885	1.520
Net debt	960	1.094	909	829	943	974	793
Net worth3	3,771	3,911	4,346	4,275	4,641	4,973	5,361
Returno n invested capital	12.2%	6.9%	6.3%	7.8%	10.2%	9.2%	12.9%

2. Based on an independent report (Deloitte), updated in October 2020; net of tax.
3. Adjusted by land appreciation

Sustainability

Evaluating sustainability trends and understanding the social and environ-mental impacts of our business led us to organize our ESG model based on three priority vectors. We identified the Sustainable Development Goals (SDGs) and the Food and Agriculture Business Principles (FAB Principles) to which we can contribute most effectively through investments and internal programs, as well as through stronger relationships with local communities and other actors in civil society.

The mechanisms for mitigating and protecting socio-environmental factors are based on the Integrated Management System (SGI) that we implemented more than 10 years ago. The SGI and its certificates are implemented under a standardized model at all our farms. We ended 2020 with 11 units (head-quarters and 10 farms) certified under ISO 14,001, ISO 45,001 and NBR 16,001. Another 7 units (headquarters and 6 farms) are certified under ISO 9,001. Our purpose is to conclude the integration of all units by 2024.

In addition to management system certifications, we also worked to ensure that our commodities are certified in quality, traceability and responsible pro-duction model in accordance with best practices and guidelines. These inter-nationally recognized certificates permit our Company to access the world's most important markets, which leverages our growth strategy and adds value to our products.

Climate change & soil

Climate change caused by the increase in the Earth's aver-age temperature has critical impacts on all production sec-tors and communities. Changes in rainfall regimes, the in-tensification of catastrophic weather events and the expan-sion of desertification processes could severely affect agri-cultural potential.

To help reverse these risks, our goal is to reduce the carbon footprint of our production model. We also work to improve mechanisms for sequestering and fixing carbon in the soil using agricultural techniques.

Soil cultivated using direct seeding has the potential to absorb an additional 300kg of CO2 per hectare compared to traditional models. We use this technique on approximately 90% of the area we cultivate each crop year, which represents the potential to absorb 360,000 tons of CO2 equiva-lent, which corresponds to planting 51,000 trees.

Every year we prepare our greenhouse gas emissions inventory in ac-cordance with the Brazilian Greenhouse Gas Protocol Program. The study measures the quality of greenhouse gases that we issue over the year in our direct activities (Scope 1) and in acquisition of elec-tricity (Scope 2).

In three years of this work we have found opportunities to improve the methods of calculation and come as close as possible to complete estimates of emissions and carbon capture in the reality of our work in the field.

Our goal is to reduce by 25% our greenhouse gas (GHG) emissions by 2030 by investing in new technologies in the field and industry. The financial resources to be invested in projects to achieve this goal were obtained through our first issue of green bonds. In 2020, we raised R$480 million through an issue of Agribusiness Receivables Certifi-cates (CRA) that were classified as Green CRAs in accordance with the opinion and report issued by a third party (second opinion).

TABLE 30. GHG EMISSIONS INVENTORY

Greenhouse gas emissions inventory (kt CO2e)	2019	2018	2017
Scope 1 (agricultural operations)	573	569	482
Scope 2 (energy use)	4	4	4

Selective application of weedkillers

We use cutting-edge technology to achieve economic and envi-ronmental gains on our farms. The weedkiller spraying machines have sensors that detect the presence of invasive plants in the soil and command the opening of bi-injectors only in those places.

This reduces the use of weedkillers in the plantations by up to 90%. This innovation is still at the pilot phase in one of our farms, and has shown very positive results in terms of expanding it to our other units.

Water & biodiversity

The conservation of water resources and biodiversity is one of the priori-ties of the Company's integrated management. Our purpose is to promote agriculture that is responsible and connected to the environment, with a balance between natural and cultivation areas. Our initiatives focus on capturing eco-efficiency gains in production, protecting headwaters and bodies of water and developing reforested and recovered areas.

At present, 99% of the areas that we cultivate do not use irrigation sys-tems - this is known as dry, rain-fed or non-irrigation farming. On the Pamplona and Palmares farms, where a small portion of the cultivation is irrigated, we adopt the Irriga System, which continually monitors the soil's specific demand for water for the next 24 to 48 hours.

In 2020 the total volume captured was 18.3 million m³, reduction of 28.6% in relation to the previous year due to good rainfall levels at Fazenda Pamplona, which minimized the demand for the Irriga System.

Bio-factories

We have 11 units producing bio-pesticides used on our farms, each one with capacity for 15,000 liters per week. In the structures we produce and test six different types of microorganisms, whose application in substitution to synthetic products is interesting for the natural balance of ecosystems and, combined with localized application technologies, reduces the demand for volume of materials and water in operations.

A total of 97,400 hectares of our farms are set aside

for conserving natural forests and biodiversity. We

also operate nurseries on eight farms that supply

seedlings, which are predominately of tree species

native to the Cerrado biome, to local communities

(such as local governments, NGOs and educational

institutions).

To expand the generation of positive impacts, we

work in partnership with universities and civil society

organizations to develop projects focusing on pro-

tecting the fauna and flora of the Cerrado biome. Ex-

amples include our involvement, since 2018, in the

Pantanal Headwaters Pact and in the Cerrado Biodi-

versity Conservation Program, the latter developed at

the Planalto Farm in partnership with the Federal

University of Rio Grande do Sul (UFRGS).

Stakeholder relations

We build long-term, ethical and transparent relationships with all stakeholders connected to our business model. We identify and work to improve our operations to meet the expectations and demands of suppliers, employees and communities in the municipalities where we have operations. To strengthen this relationship, we also disclose our corporate values and the strategy to materialize our purpose: Our Big Dream. Open dialogue and respect for diversity are the pillars that sustain our way of acting.

Employees

All permanent and seasonal workers are cov-ered by collective bargaining agreements and have the right to a benefits package. The pack-age of benefits of the SLC Foundation, which covers 100% of professionals, includes a health plan, dental plan, life insurance and funeral as-sistance, as well as reimbursement of medical and medicine expenses. Furthermore, perma-nent employees are entitled to extended mater-nity and paternity leave (6 months for women and 20 days for men), meal vouchers or cafete-ria meals, temporary renter's assistance and accommodation at the farms, daycare assis-tance, transportation voucher, educational as-sistance and agreements with universities and a food voucher card.

The Leadership Academy is our program for encouraging profes-sionals in leadership positions, trainees and potential leaders to improve their leadership skills. The different development pro-grams carried out annually are based on training courses and programs that focus primarily on alignment with the corporate strategy and improving organizational skills for leaders. In addi-tion to training, the Competencies Assessment model provides leaders with structured knowledge for recognizing their strengths and opportunities for development.

We also created Digital Inclusion Spaces at our agricultural units. These rooms, which are equipped with computers connected to the Internet, encourage employees to participate in distance-learning courses and gain basic knowledge on computers and digital agriculture.

The culture of safety among teams is continuously strengthened over the entire crop year through specific and planned initia-tives. In 2019/20 crop year, we achieved the best performance in the company's history and registered a significant reduction in accidents with lost-time injuries involving both employees (from 38 to 25 compared to the prior crop year) and third par-ties (from 10 to 3).

Communities

Our actions to foster local development were expanded in 2020 with the creation of the SLC Institute, which was conceived by the SLC Group (our shareholder) and is responsible for managing the funds we allocate to Private Social Investment (PSI). Created as a non-profit organization, the SLC Institute focuses on developing people and communities by supporting education as an important vector of social transformation and opportunity creation.

Suppliers

Our suppliers are a strategic link in our goal of reaching maximum efficiency and production in our operations. The relations we build with suppliers help us to find innovative solutions that drive the entire production chain towards more sustainable operation in terms of economic, social and environmental impacts.

Guided by the Procurement Policy, we require these partners to adopt conduct that is aligned with our values, comply with legisla-tion and fully incorporate respect for human rights. Our EthicsIn 2020, its initiatives focused on cooperation in combating the coro-navirus pandemic, with donations amounting to R$1.6 million. Of this amount, R$1 million came from the own funds of SLC Agrícola. Com-bined with the funds involving tax incentives allocated to social pro-jects in 2020, the Company's total social investment last year came to R$2.9 million. One of these was the Entrepreneur Project, which works to reduce dropout rates through educational initiatives that foster knowledge, self-esteem and better communication between students and teachers.

Channel also is open to receiving reports on the improper behav-iors and attitudes of our commercial partners.

All suppliers undergo an approval process that involves verifying the documents attesting to their legal compliance and, depending on the case, specific evaluations in the areas of Health, Safety and Environment. We also monitor the payment of all labor contribu-tions and taxes and other obligations related to employment con-tracts involving outsourced companies, whose compliance is nec-essary for approving the payments to these partners.

Additional information

TABLE 31. PLANTED AREA - 2020/21 CROP YEAR

Mix of areas	VA 20/21	HA
1st crop area	68.7%	2.8%
Own area	23.5%	-1.0%
Leased area	28.9%	4.1%
Joint ventures2	8.9%	3.6%
SLC LandCo area3	7.5%	9.0%
2nd crop area	31.2%	8.1%
Own area	11.1%	-3.7%
Leased area	13.6%	18.6%
Joint ventures2	3.0%	44.1%
SLC LandCo area3	3.4%	-7.6%
Total area	100.0%	4.4%
1. Climatic factors may affect the projection of the planted area.
2. Areas belonging to the Roncador Group and Mitsui.
3. SLC Agrícola holds an 81.23% interest in SLC LandCo.

Planted area (hectares)
2019/2020	2020/20211
313,458	322,085
111,101	109,999
129,946	135,330
40,148	41,594
32,263	35,162
135,110	146,111
54,156	52,145
53,604	63,589
9,876	14,229
17,474	16,148
448,568	468,196

TABLE 32. PLANTED AREA - 2019/20 CROP YEAR

Mix of areas	VA 19/20	Δ%
1st crop area	69.9	-0.9
Own area	24.8	-0.2
Leased area	29.0	-0.6
Joint ventures1	9.0	1.5
SLC LandCo area2	7.1	-6.9
2nd crop area	30.1	-4.8
Own area	12.1	-12.7
Leased area	11.9	-5.3
Joint ventures1	2.2	16.0
SLC LandCo area2	3.9	18.0
Total area	100.0	-2.1
1. Areas belonging to the Roncador Group and Mitsui.
2. SLC Agrícola holds an 81.23% interest in SLC LandCo.

Planted area (hectares)
2018/2019	2019/2020
316,159	313,458
111,279	111,101
130,669	129,946
39,551	40,148
34,660	32,263
141,940	135,110
62,000	54,156
56,611	53,604
8,516	9,876
14,813	17,474
458,099	448,568

TABLE 33. LAND PORTFOLIO

Áreas safra 2020/2021 (ha)

Farm

State

Pamplona Pantanal Planalto Planorte Paiaguás Perdizes5 Pioneira4 Panorama Paladino5 Piratini Palmares Parceiro Parnaíba Palmeira PlanestePaineira6 Parnaguá

Total

GO MS MS MT MT MT MT BA BA BA BA BA MA MA MAPI PI -

1. Own area includes legal reserve.
Owned1
17.994
15.006 23.454 28.129 28.893
16.195 27.564 26.193
12.892 19.416
215.736
SLC LandCo2
Leased
13.288
10.373
25.356
831 3.680
10.200 22.784
86.512
3.854 25.996
1.635
17.318
14.253
16.470 9.441 11.570
14.459 20.334
135.330
Joint Ventures Under control
2. SLC Agrícola currently owns 81.23% of LandCo, and the Valiance fund equals 18.77%.
3. Including second crop. Climatic factors may affect the projection of the planted area.
4. The Pioneira Farm is part of the joint operation with the Roncador Group.
5. The Perdizes and Paladino Farms are part of the joint operation with Mitsui at SLC-Mit.
6. Farm leased to third parties.

21.848 25.996

16.641 23.454

45.447

42.181

19.705

Total planted3

22.547 43.547

22.522 29.663

62.930

26.667

19.705

24.626

21.889

33.934

21.806

21.889

25.356

33.496 40.685 37.763

24.659 43.118

12.892 19.416

41.594

21.889

8.446

24.383 14.365 43.252

21.154 61.872 -

9.219

479.172

468.196

TABLE 34. LANDBANK

Hectares	Areas in transformation2	Areas in licensing process
SLC Agrícola
Parnaíba	1.464	-
Parnaguá	-	2.872
Parceiro	5.627	-
Subtotal	7.091	2.872
SLC LandCo
Palmeira1	4.749	-
Piratini	9.993	-
Parceiro1	-	-
Subtotal	14.742	-
1. Areas acquired by SLC LandCo that will be explored together with these farms.
2. In development for commercial planting.
Property appraisal

Total

21.833

2.872

In October, a new independent appraisal of SLC Agrícola's property portfolio was concluded by the firm Deloitte Touche Tohmatsu, the result of which indicated a total value of R$3.962 billion, representing appreciation of 4.62% in relation to 2019. The average price per arable hectare of the Company's properties is currently R$19,455.

TABLE 35. MACHINERY BASE AND STORAGE CAPACITY

2018	2019	2020	TABLE 36. NET ASSET VALUE - NAV
Machinery (quantity)	867	873	868
(R$'000)	4T20
Tractors	216	212	211
SLC Agrícola Farms1	2,767
Grain combiners	209	206	196
SLC LandCo Farms1	755
Cottonpickers	76	85	92
Infrastructure (excl. land)	1,114
Planters	212	209	210
Accounts receivable (excl. derivatives)	149
Self-propelled sprayers	154	161	159
Inventories	1,225
Storage capacity (tons)
Biological assets	808
Grains	764.000	764.000	764.000
Cash	1,520
% Production1	52%	52%	44%
Subtotal	8,338
Cotton	125.148	125.148	125.148
Suppliers	1,021
% Production1	60%	60%	63%
Gross debt adjusted for the result of operations with	2,130
derivatives
Debts related to land purchase	-
Subtotal	3,151

1. Estimate based on the planted area and yields for crop year of 2020/2021.

Net Asset Value	5,187
Net Asset Value per share (190.595.000 shares)	27.2

1. Based on an independent assessment report (Deloitte, 2020), net of taxes. NOTE: All accounts are adjusted by the interest of SLC Agrícolas in subsidiar-ies/joint venture.

Debt

Dividends

The distribution of dividends, in the last five fiscal years, presented an average payout of 50% of adjusted net income.

On March 17, 2021, the Board of Directors approved the Manage-ment Proposal, which will be submitted to the Shareholders' Meet-ing to be held on April 4, 2021. The Proposal indicates the distribu-tion of R$199,691,908.51. The dividend will be paid equally to all shares issued by the company, corresponding to R$1.064543 per common share (excluding treasury shares). Of this amount, R$83,672,518.69 will correspond to mandatory dividend and R$116,019,389.83 to additional dividends.

On December 16, 2020, the net amount of R$32,346,871.14 was paid, resolved at a meeting of the Board of Directors held on No-vember 6, 2020, imputed in the calculation of the mandatory divi-dend for fiscal year 2020. The gross amount was distributed as in-terest on equity corresponds to R$37,117,543.63.

The sum of the amount to be proposed to the Shareholders' Meeting and the net amount already distributed as interest on shareholders' equity totals R$232,038,779.65, representing 50% of the parent company's adjusted profit ended on December 31, 2020. The divi-dend will be paid equally to all the shares issued by the company (excluding treasury shares), corresponding, then, to R$1.236982 for each common share held by the shareholders.

TABLE 37. PROPOSAL OF DIVIDEND DISTRIBUTION

(R$'000)

Net income of the parent company Appropriation of subvention reserve Appropriation of legal reserve Calculation base for dividends proposed a. Minimum mandatory dividend of 25% Interest On Equity - IOE (Gross)1

Taxes on IOE

b. Net IOE c. Additional Proposed dividend (25%)

Proposed Dividendes (a+b+c)

% on Net Profit for the Year

2019 311,514

2020 488,674

939

15,575

295,000

73,753 -

- 73,749 147,502 50%

171

24,425

464,078

83,673

37,117 -4,770

32,347 116,019 232,039 50%

1. Amount paid on 12/16/2020.

Increase of 56,9% in the parent company's net profit, in relation to 2019

Increase of 57,3% in the amount of proposed dividends, in comparison to last year's same period

Capital markets

111,35% appreciation of SLC Agrícola' share (SLC3) in the last 360 days, against a 5.36% appreciation of Ibovespa (Feb-20 to Feb-21)

The company's share capital is divided into 190,595,000 common shares with no par value, with a free float of 45.46% on the base date of December 31, 2020. The shares of SLC Agrícola (SLCE3) are traded on B3, at the highest corporate governance segment, the Novo Mercado. In addi-tion, they are available on the North American over-the-counter market via ADR Level1, with the ticker "SLCJY". SLCE3 is part of the following indi-ces: Small Caps (SMLL B3), IBRA3, ICON B3, IDIV B3, IGCT B3, IGCX B3, IGNM B3 and ITAG B3.

In the last 360 days (Feb-20 to Feb-21), SLCE3 registered an appreciation of 111.35%, against a 5.36% appreciation of Ibovespa in the same pe-riod, as shown in the chart.

The average volume traded on the spot market, in the last 360 days (Feb-20 to Feb-21), reached the mark of R$33.2 million, with an average of 1.27 million shares traded.

At the end of February, the company reached a record market value of R$7.8 billion, R$40.98 per share on 2/26/2021.

Independent auditorsDisclaimer

Throughout fiscal year 2020, in compliance with CVM Instruc-tion No. 381/03, SLC Agrícola informs that ERNST & YOUNG Auditores Independentes SS provided audit services for the individual and consolidated financial statements for the fiscal year ended on December 31, 2020, also as tax advisory services. The amount referring to the audited services of the financial statements contracted amounted to R$840,889.93, and the tax advisory services represented 13.20% of the audit services.

Submission to Arbitration Chamber

The Company is subject to arbitration by the Novo Mercado Arbitration Chamber, as per the submission to arbitration clause in its Bylaws.

We make statements concerning future events that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our Management and on the information cur-rently available to the Company.

Forward-looking statements include information on our current plans, beliefs or expectations, as well as those of the Company's di-rectors and officers. Forward-looking statements include information on potential or assumed operating results as well as statements that are preceded, followed by or include the words "believe," "may," "will," "continue," "expect," "project," "intend," "plan," "estimate" or similar expressions. Forward-looking statements and information provide no guarantee of performance. Because they refer to future events, they involve risks, uncertainties and assumptions and as such depend on circumstances that may or may not occur. The Company's future re-sults and creation of value for shareholders may differ significantly from the figures expressed or suggested in the forward-looking state-ments. Many factors that will determine these results and values are beyond our capacity to control or predict.

Financial statements

December 31, 2020 with report of the independent auditor

73 Report of the independent auditor on

individual and consolidated financial

statements

78 Individual and consolidated financial statements

Balance sheets

Income statements

Comprehensive income statements

Statements of changes in shareholders' equity

Cash flow statements

Value added statements

Notes to the financial statements

Fiscal Council OpinionBoard of Executive Officers' Opinion on FSs

Board of Executive Officers' Opinion on the Auditing Report

The Fiscal Council of SLC Agrícola S.A., in compli-ance with the legal and statutory provisions, ex-amined the Management Report and the individ-ual and consolidated Financial Statements of SLC Agrícola S.A., all related to the fiscal year ended on December 31, 2020.

Based on the examinations carried out, also con-sidering the report of Ernst & Young Auditores Independentes SS, dated March 17, 2021, as well as the information and clarifications re-ceived during the year, he believes that the re-ferred documents are in conditions to be ana-lyzed and approved by the Annual General Meet-ing of Shareholders.

Porto Alegre/RS, March 17, 2021.

João Carlos Sfreddo

Chairman of the Fiscal Council

Paulo Roberto Kruse Member

Mauricio Rocha Alves de Carvalho Member

In compliance with the provisions contained in article 25 of Instruction No. 480/09, of Decem-ber 7, 2009, the Board of Directors declares that it has reviewed, discussed and agreed with the Financial Statements (Parent Company and Con-solidated) related to the fiscal year ended on De-cember 31, 2020.

Porto Alegre/RS, March 17, 2020.

Aurélio Pavinato

Chief Executive Officer

Ivo Marcon Brum

Chief Financial and Investor Relations Officer

Gustavo Macedo Lunardi

Chief Operating Officer

Aldo Roberto Tisott Chief Sales Officer

Álvaro Luis Dilli

Chief HR and Sustainability Officer

In compliance with the provisions contained in article 25 of Instruction No. 480/09, of Decem-ber 7, 2009, the Board of Directors declares that it has revised, discussed and agreed with the opinion expressed in the opinion of the Inde-pendent Auditors, dated March 17, 2021, re-garding the Financial Statements (Parent Com-pany and Consolidated) for the fiscal year ended on December 31, 2020.

Porto Alegre/RS, March 17, 2021.

Aurélio Pavinato

Chief Executive Officer

Ivo Marcon Brum

Chief Financial and Investor Relations Officer

Gustavo Macedo Lunardi

Chief Operating Officer

Aldo Roberto Tisott Chief Sales Officer

Álvaro Luis Dilli

Chief HR and Sustainability Officer

Report of the independent auditor on individual and consolidated financial statements

To the Shareholders, Board of Directors and Officers SLC Agrícola S.A.

Porto Alegre - RS

Opinion

We have audited the individual and consolidated financial statements of SLC Agrícola S.A. (the "Company"), identified as Individual and Consolidated, respec-tively, which comprise the statement of financial position as at December 31, 2020, and the statements of profit or loss, of comprehensive income, of changes in equity and cash flows for the year then ended, and notes to the financial state-ments, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all ma-terial respects, the individual and consolidated financial position of the Company as at December 31, 2020, and its individual and consolidated financial perfor-mance and cash flows for the year then ended in accordance with the accounting practices adopted in Brazil and with the International Financial Reporting Stand-ards (IFRS) issued by the International Accounting Standards Board (IASB).

Basis for opinion

We conducted our audit in accordance with Brazilian and International Standards on Auditing. Our responsibilities under those standards are further described inthe Auditor's responsibilities for the audit of the individual and consolidated financial statements section of our report. We are independent of the Com-pany and its subsidiaries in accordance with the relevant ethical principles set forth in the Code of Professional Ethics for Accountants, the professional standards issued by the Brazil's National Association of State Boards of Ac-countancy (CFC) and we have fulfilled our other ethical responsibilities in ac-cordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the indi-vidual and consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter, including any commentary on the findings or outcome of our procedures, is provided in that context.

We have fulfilled the responsibilities described in the Auditor's responsibilities for the audit of the individual and consolidated financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assess-ment of the risks of material misstatement of the financial statements.

The results of our audit procedures, including the procedures performed to ad-dress the matters below, provide the basis for our audit opinion on the accompa-nying financial statements.

Measurement of biological assets

As mentioned in Note 8, the Company and its subsidiaries measure their biologi-cal assets, which correspond to agricultural products, mainly soybean, corn and cotton, based on their fair value from the pre-harvest stage. This measurement is a significant estimate based on several assumptions and methodologies adopted by the Company's management, for which internal and external infor-mation was used, mainly related to active market prices, productivity and planted areas. At December 31, 2020, the Company recorded biological assets in the amount of R$739,267 thousand and R$891,804 thousand in current assets in the Individual and Consolidated financial statements, respectively.

This was considered a key audit matter due to the materiality of the amounts of the biological assets in relation to total assets and to the net income for the year, as well as due to the uncertainties inherent in this type of estimation, and the required level of judgment to be made by management in determining the as-sumptions for calculating fair value.

How our audit addressed this matter

Our audit procedures included, among others, reviewing the calculation method used by the Company, and using specialists in the physical inspection of a sample of planted areas to determine the existence of the biological assets and their physical conditions. Additionally, we assessed the assumptions related to active market prices, expected productivity and planted areas, among others. We also tested a sample of documents with costs that were added throughout the year. Finally, we assessed the adequacy of the disclosures made by the Company in this regard in the footnotes.

Based on the results of the audit procedures performed for the measurement of biological assets, which are consistent with management's assessment, we con-sider that the criteria and assumptions relating to the measurement of biologicalassets adopted by management, as well as the related disclosures in Note 8, are appropriate in the context of the individual and consolidated financial statements taken as a whole.

Hedge accounting

As described in Note 25, the Company and its subsidiaries enter into derivative financial instruments to hedge currency risks and commodity price risks for ag-ricultural products, in relation to future revenue highly probable of occurring, recorded in accordance with the hedge accounting model. At December 31, 2020, the Company recorded R$207,640 thousand, net of deferred taxes, in equity (In-dividual and Consolidated), in "Other comprehensive income."

Designation of financial instruments as hedged items (hedge accounting) and measuring their effectiveness require compliance with some formal obligations and the use of significant estimates of probable forecast revenues. Due to the large number of transactions entered into, the complex measurement of the fair value of transactions and assessment of hedge effectiveness, in addition to the potential impact that changes in future forecast revenue may have on the Com-pany's results and cash flows, we consider this a key audit matter.

How our audit addressed this matter

Our audit procedures included, among others: understanding the design of the risk management process and the hedge accounting structure, including the analysis of the policy adopted by the Company; reperforming the measurement of the fair value of transactions, with the involvement of specialists in derivative financial instruments to assist us in the preparation of an independent valuation calculation; crosschecking the amount recorded by the Company with the infor-mation provided by the financial institutions through confirmation procedures - sending out confirmation letters to the respective counterparties to the transac-tions; reviewing the documents with the designation of financial instruments and the corresponding transactions and prospective effectiveness tests prepared by management; reviewing the forecast of probable future revenues based on the analysis of outright sale agreements and sales estimates; and reviewing the

disclosures made in the notes to the individual and consolidated financial statemnts. As a result of these procedures, we identified an audit adjustment related to the measurement of the fair value of certain transactions. This adjust-ment was not recorded by management in view of its immateriality in relation to the financial statements taken as a whole.

Based on the results of the audit procedures performed, which are consistent with management's assessment, we consider that the Company's hedge ac-counting policies are acceptable in relation to the requirements of NBC TG 48 (IFRS 9) to support the judgments, estimates and information included in the footnotes to the individual and consolidated financial statements taken as a whole.

Measurement of lease liabilities and right-of-use assets in ac-cordance with NBC TG 06 (R3) (IFRS 16)

As described in Note 13, the Company recorded right-of-use assets and lease liabilities for the contracts covered by NBC TG 06 (R3) (IFRS 16). As at De-cember 31, 2020, right-of-use assets were recorded for R$2,463,254 thousand in the Individual financial statements and for R$828,496 thousand in the Con-solidated financial statements; and lease liabilities were recorded for R$2,615,382 thousand in the Individual financial statements and for R$934,284 thousand in the Consolidated financial statements.

This was considered a key audit matter due to the materiality of the amounts involved in relation to the asset and liability balances and to the profit and loss balances, as well as due to the uncertainties inherent in this type of es-timation, and the required level of judgment to be made by management in determining the relevant assumptions, which also include the discount rate used.

How our audit addressed this matter

Our audit procedures included, among others, assessing the main assump-tions adopted in connection with the lease term, the discount rate and con-sideration amounts, in addition to the calculation methodology used by theCompany to measure the accounting impacts; reviewing the inventory of the Company's lease contracts, in addition to determining whether the contracts comply with the scope of the standard. We also tested a sample of contracts selected at random for the reasonableness of the criteria adopted by the Com-pany, considering the information contained in the contracts and their amend-ments, in addition to testing the accuracy of the amounts calculated by the Company for these transactions. Finally, we examined the adequacy of the disclosures made by the Company in this regard in the footnotes, including the requirements of NBC TG 06 (R3) (IFRS 16) and the guidelines of the Bra-zilian Securities and Exchange Commission (CVM).

Based on the results of the audit procedures performed, which are consistent with management's assessment, we consider that the criteria and assump-tions adopted by management to measure and record lease contracts in ac-cordance with the requirements of NBC TG 06 (R3) (IFRS 16), as well as the related disclosures in Note 13, are appropriate in the context of the individual and consolidated financial statements taken as a whole.

Other matters

Statements of value added

The individual and consolidated statements of value added (SVA) for year ended December 31, 2020, prepared under the responsibility of Company management, and presented as supplementary information for purposes of IFRS, were submitted to audit procedures conducted together with the audit of the Company's financial statements. To form our opinion, we evaluated if these statements are reconciled to the financial statements and accounting records, as applicable, and if their form and content comply with the criteria defined by NBC TG 09 - Statement of Value Added. In our opinion, these statements of value added were prepared fairly, in all material respects, in accordance with the criteria defined in abovementioned accounting pro-nouncement, and are consistent in relation to the overall individual and con-solidated financial statements.

Other information accompanying the individual and consoli-dated financial statements and the auditor's report

Management is responsible for such other information, which comprise the Man-agement Report.

Our opinion on the individual and consolidated financial statements does not cover the Management Report and we do not express any form of assurance con-clusion thereon.

In connection with our audit of the individual and consolidated financial state-ments, our responsibility is to read the Management Report and, in doing so, consider whether this report is materially inconsistent with the financial state-ments or our knowledge obtained in the audit or otherwise appears to be mate-rially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of the Management Report, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of management and those charged with govern-ance for the individual and consolidated financial statements

Management is responsible for the preparation and fair presentation of the indi-vidual and consolidated financial statements in accordance with the accounting practices adopted in Brazil and with the International Financial Reporting Stand-ards (IFRS) issued by the International Accounting Standards Board (IASB), and for such internal control as management determines is necessary to enable the preparation of financial statements that are free of material misstatement, whether due to fraud or error.

In preparing the individual and consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's and its subsidiaries' financial reporting process.

Auditor's responsibilities for the audit of the individual and con-solidated financial statements

Our objectives are to obtain reasonable assurance about whether the individual and consolidated financial statements as a whole are free of material misstate-ment, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guar-antee that an audit conducted in accordance with Brazilian and International standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, indi-vidually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Brazilian and International Standards on Auditing, we exercise professional judgment and maintain professional skepti-cism throughout the audit. We also:

 Identified and assessed the risks of material misstatement of the indi-vidual and consolidated financial statements, whether due to fraud or error, designed and performed audit procedures responsive to those risks, and obtained audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material mis-statement resulting from fraud is higher than for one resulting from er-ror, as fraud may involve collusion, forgery, intentional omissions, mis-representations, or the override of internal control.
 Obtained an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circum-stances, but not for the purpose of expressing an opinion on the effec-tiveness of the Company's and its subsidiaries' internal control.

 Evaluated the appropriateness of accounting policies used and the rea-sonableness of accounting estimates and related disclosures made by management.
 Concluded on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a go-ing concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclo-sures in the individual and consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's re-port. However, future events or conditions may cause the Company to cease to continue as a going concern.
 Evaluated the overall presentation, structure and content of the financial statements, including the disclosures, and whether the individual and consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the scope and timing of the planned audit procedures and significant audit findings, including deficiencies in internal control that we may have identi-fied during our audit.

We also provided those charged with governance with a statement that we have complied with relevant ethical requirements, including applicable independence requirements, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where appli-cable, related safeguards.

From the matters communicated with those charged with governance, we deter-mined those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Porto Alegre, March 17, 2021.

ERNST & YOUNG

Auditores Independentes S.S. CRC 2SP015199/O-6

Guilherme Ghidini Neto Accountant CRC-RS 067795/O-5

Statements of financial position | December 31, 2020 and 2019

(In thousands of Reais)

Assets Current assets

Cash and cash equivalents	5	1,319,290	17	933,146	773,124 1,101,769 922,000
Short-term interest earning bank deposits	5	-	18	297,692	623,874 377,547 699,515
Accounts receivable	6	178,085	49,452	47,905 57,186 57,510
Advances to suppliers	3,221	65,235	44,151 79,989 54,572
Inventories	7	1,179,014	57,233	28,907 68,264 33,289
Biological assets	8	739,267	16	1,310	2,763 118 125
Recoverable taxes	9	28,521	13	204,525	104,591 - -
Securities and credits receivable	10	-	25	318,242	47,839 358,969 55,230
Operations with derivatives	25	89,721	21	-	- 12,273 12,273
Intercompany transactions	16	2,475	19	3,524	3,808 5,429 4,121
Other accounts receivable	5,280	22.h	83,680	73,759 86,332 73,759
Prepaid expenses	15,471	24.2	-	225 5,283 225
Assets held for sale	810	13	150,888	105,998 162,258 114,567
Total current assets	3,561,155	12,112	10,644 21,680 16,375
2,177,039	1,867,588 2,337,097 2,043,561

Non-current assets
Long-term interest earning bank deposits	5	663	18	1,753,056	933,853 2,039,736 1,160,251
Recoverable taxes	9	64,236	20	153,553	187,853 230,802 247,531
Deferred income and social contrib. taxes	20	-	13	1,517,643	795,214 - -
Operations with derivatives	25	118,126	25	56,965	3,519 58,152 5,643
Intercompany transactions	16	25,246	21	-	- 706 1,412
Advances to suppliers	2,758	13	742,326	491,653 772,026 515,149
Prepaid expenses	378	114	161 114 161
Other credits	2,071	4,223,657	2,412,253 3,101,536 1,930,147
Securities and credits receivable	10	-
213,478
22.a	947,522	947,522 947,522 947,522
Investiments	11	2,212,789	22.b	97,504	97,760 97,504 97,760
Investment Property	12	-	22.c	(52,921)	(64,321) (52,921) (64,321)
Right of Use in Lease	13	2,463,254	22.d.e.f.g	978,074	680,719 978,074 680,719
Property, plant and equipment	14	855,159	22.j	970,200	1,122,997 970,200 1,122,997
Intangible	15	35,240	2,940,379	2,784,677 2,940,379 2,784,677
5,566,442	-	- 210,679 199,744
Total non-current assets	5,779,920	2,940,379	2,784,677 3,151,058 2,984,421

TOTAL ASSETS	9,341,075	9,341,075	7,064,518 8,589,691 6,958,129

See accompanying notes.

Parent Company

Consolidated

Parent Company

ConsolidatedNote

Note

12/31/2020

12/31/2019

12/31/2020

12/31/2019

12/31/2020

12/31/2019

12/31/2020

12/31/2019

LIABILITIES Current liabilities

Statement of profit or loss | December 31, 2020 and 2019

Income from sales of goods and/or services Biological assets

Cost of goods sold

Cost of goods and/or services sold

Biological assets cost

Gross income

Operating income (expenses) Sales expenses

General and administrative expenses Management compensation

Equity income

Other operating (expenses) incomeOperating result Financial income Financial expensesResult before income and social contribution taxes

Income and social contribution taxes

Current

Deferred assets

Net Income

Attributable to: Controlling shareholders

Not controlling interest in subsidiariesEarnings per share attributable to shareholders from continuing operations at end of period (expressed in reais per share):

(In thousands Reais, except profit per share)

Parent Company

ConsolidatedNote

12/31/2020

12/31/2019

12/31/2020

12/31/2019

30 8 31

2,633,284

2,163,990

3,097,547

676,476

2,535,905

470,442

775,534

(2,408,692)

504,751

(1,985,922)

(2,802,782)

(1,749,343)

(1,514,748)

(2,051,786)

(659,349)

(1,733,206)

(471,174)

(750,996)

(524,266)

901,068

648,510

1,070,299

31 31 16.d 11

783,184

(149,471)

(134,043)

(173,964)

(103,811)

(152,972)

(80,864)

(115,452)

(14,040)

(89,324)

(12,959)

(14,716)

177,399

(13,827)

175,243

(22,550)

397

14,763

31,651

(112,473)

(52,226)

(289,369)

(224,472)

788,595

596,284

780,930

23 23

344,732 (527,592) (182,860)

170,915 (380,262) (209,347)

429,678 (521,429) (91,751)

203,659 (347,709) (144,050)

605,735

386,937

689,179

414,662

(79,305) (37,756) 488,674 488,674

(59,314) (16,109) 311,514 311,514

(111,392) (66,839) 510,948 488,674 22,274 510,948

(90,856) (8,765) 315,041 311,514 3,527 315,041

Basic earnings per share - R$ Diluted net income per share - R$ See accompanying notes.

22.i 22.i

2.60966 2.59868

1.66838 1.65486

2.60966 2.59868

1.66838 1.65486

Statement of comprehensive income | December 31, 2020 and 2019

Parent Company

(In thousands Reais)

Consolidated

12/31/2020

12/31/2019

12/31/2020

Income for the year	488,674	311,514	510,948	315,041
Other comprehensive income to be reclassified to the result for the year in subsequent periods
Derivatives - cash flow hedge	(211,929)	106,498	(239,796)	109,501
Derivatives - cash flow hedge - subsidiaries	(9,704)	994	-	-
Income and social contribution taxes	72,056	(36,210)	81,531	(37,232)
(149,577)	71,282	(158,265)	72,269
Other comprehensive income not reclassified to the result for the year in subsequent periods
Set deemed cost fixed assets in subsidiary	-	(1,991)	-	(1,991)
Taxes on fixed asset adjustments	-	62	-	62
(1,929)	(1,929)
Other comprehensive income, net of taxes	(149,577)	(69,353)	(158,265)	70,340
Total other comprehensive income for the year, net of taxes	339,097	380,867	352,683	385,381
Attributable to:
Controlling shareholders	339,097	380,867	339,097	380,867
Not controlling interest in subsidiaries	13,586	4,514
352,683	385,381

12/31/2019

See accompanying notes.

Statements of changes in shareholders' equity | December 31, 2020 and 2019

(In thousands Reais)

Capital reserves

Profit reservesShare capital

Goodwill (discount) In the issuance of share

Recognized options granted

Treasury sharesInvestment incentivized reserv

Legal reserve

Expansion reserveProfit retention reserve

Additional dividend proposed

Other com-prehensive income

Retained earnings

Total interest of controlling shareholders

Interest of non-controlling shareholders

Balances as of December 31, 2018	947,522	53,941	48,763	(36,816)	13,932	47,136	341,945	5,628	88,156	1,087,961	-	2,598,168	196,585	2,794,753
Goodwill (discount) on the sale of shares	-	(10,330)	-	-	-	-	-	-	-	-	-	(10,330)	-	(10,330)
Compensation based on shares recognized in the fiscal year	-	-	5,386	-	-	-	-	-	-	-	-	5,386	-	5,386
Stock-based compensation exercised/rebought in the year	-	-	-	(27,505)	-	-	-	-	-	-	-	(27,505)	-	(27,505)
Unrealized gain on hedge instruments, net of tax	-	-	-	-	-	-	-	-	-	71,283	-	71,283	989	72,272
Realization of depreciation of the cost assigned to the fixed assets	-	-	-	-	-	-	-	-	-	(32,959)	32,959	-	-	-
Assigned cost adjustment fixed assets in subsidiary	-	-	-	-	-	-	-	-	-	(1,992)	-	(1,992)	-	(1,992)
Others	-	-	-	-	-	-	-	-	-	(1,358)	1,358	-	-	-
Taxes on adjustment of cost attributed to fixed assets in subsidiary	-	-	-	-	-	-	-	-	-	62	-	62	-	62
Net income for the year	-	-	-	-	-	-	-	-	-	-	311,514	311,514	3,527	315,041
Proposed additional dividend	-	-	-	-	-	-	-	-	(88,156)	-	-	(88,156)	(1,357)	(89,513)
Proposed destination:	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Constitution of reserves	-	-	-	-	939	15,575	181,815	-	-	-	(198,329)	-	-	-
Minimum mandatory dividend	-	-	-	-	-	-	-	-	-	-	(73,753)	(73,753)	-	(73,753)
Additional dividend approved for 2018	-	-	-	-	-	-	-	-	73,749	-	(73,749)	-	-	-
Balances as of December 31, 2019	947,522	43,611	54,149	(64,321)	14,871	62,711	523,760	5,628	73,749	1,122,997	-	2,784,677	199,744	2,984,421
Goodwill (discount) on the sale of shares	-	(3,350)	-	-	-	-	-	-	-	-	-	(3,350)	-	(3,350)
Compensation based on shares recognized in the fiscal year	-	-	6,463	-	-	-	-	-	-	-	-	6,463	-	6,463
Stock-based compensation exercised in the year	-	-	-	8,031	-	-	-	-	-	-	-	8,031	-	8,031
Restricted shae compensation exercised/rebought in the year	-	(1,338)	(2,031)	3,369	-	-	-	-	-	-	-	-	-	-
Unrealized gain on hedge instruments, net of tax	-	-	-	-	-	-	-	-	-	(149,577)	-	(149,577)	(8,688)	(158,265)
Realization of depreciation of the cost assigned to the fixed assets	-	-	-	-	-	-	-	-	-	(3,220)	3,220	-	-	-
Net income for the year	-	-	-	-	-	-	-	-	-	-	488,674	488,674	22,274	510,948
Proposed additional dividend	-	-	-	-	-	-	-	-	(73,749)	-	-	(73,749)	-	(73,749)
Proposed destination:	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Constitution of reserves	-	-	-	-	171	24,425	230,489	-	-	-	(255,085)	-	-	-
Minimum mandatory dividend	-	-	-	-	-	-	-	-	-	-	(83,673)	(83,673)	(2,651)	(86,324)
Distribution of interest on own capital	-	-	-	-	-	-	-	-	-	-	(37,117)	(37,117)	-	(37,117)
Proposed additional dividend	-	-	-	-	-	-	-	-	116,019	-	(116,019)	-	-	-
Balances as of December 31, 2020	947,522	38,923	58,581	(52,921)	15,042	87,136	754,249	5,628	116,019	970,200	-	2,940,379	210,679	3,151,058

As notas explicativas são parte integrante das demonstrações financeiras.

Total sha-reholders' equity

Statement of cash flows | December 31, 2020 and 2019

(In thousands Reais)

Net cash from operational activities Net income before IRPJ/CSLL

Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization

Income from write-off of property, plant and equipment Equity in net income of subsidiaries

Interest, exchange and monetary variation Share-based compensation

Variation in biological assets

Provision of profit sharing and labor contingencies AVP - Lease Liabilities (Note 13)

Amortization of Right of Use

Fair value for investment property Other adjustments

Provision for losses taxes recover

Changes in assets and liabilities:: Trade accounts receivable Inventories and biological assets Recoverable taxes

Short-term interest earnings bank deposits Other accounts receivable

Advance to suppliers Suppliers

Taxes and social payables Liabilities with related parties Operations with derivatives Advances from clientes Rentals payable

Other accounts payable

Income tax and social contribution tax on profit paid Dividends

Interest paid

Net cash provided by (applied to) operating activities

Parent Company

Consolidated

Parent Company

Consolidated

12/31/2020

12/31/2019

12/31/2020

12/31/2019

12/31/2020

12/31/2019

12/31/2020

12/31/2019

Net cash used in investment activities

605,735

386,937

689,179

414,662

In property, plant and equipmentReceipt for sale of land (Note 10)

(177,399)

83,781

7,466

(175,243)

76,595

11,576

119,686

8,067 -

(17,811)

105,810

Payment land return In intangible assets Capital payment

142,422

132,346

148,785

143,595

Net cash used for investing activities

6,463

(147,796)

(195,431)

- (21,560)

- (5,440)

(47) (169,403)

- (200,871)

5,386

(190,129)

(235,175)

42,643

80,621

(706) (21,654)

(705) (5,746)

- (169,846)

6,463

- (161,005)

5,386

(17,127)

40,772

22,830

733

(24,538)

45,590

19,515

26,088

Net cash generated/(consumed) in financing activities Sale and repurchase of shares

154,759

4,681

(37,835)

121,740

4,681

(37,835)

61,106

47,607

Dividends Paid

119,580 -

9,416

(1,416)

65,787 -

(7,184)

73,663

9,928

(7,928)

(1,514)

43,336

Loans and financing obtained Loans and financing paid Rentals paid

(179,843)

(176,314)

1,280,800

1,349,430

(854,151)

(1,217,138)

(277,468)

(147,019)

(179,843)

(181,243)

1,485,800

(1,021,393)

(129,634)

999,667

23,799

647,271

1,155,649

24,904

778,746

Net cash provided by financing activities Increase in cash and cash equivalents

669,742

(40,971) (228,845)

(8,480)

(21,275) (156,743)

9,052

(28,878) (273,792) (10,468)

(46,859) (242,580)

5,426

Opening balance of cash and cash equivalents Closing balance of cash and cash equivalents Increase in cash and cash equivalents

649,548 1,319,290 669,742

53,639

75,841

55,329

74,436

See accompanying notes

1,512,923

(1,269,658)

(78,929)

264,920

159,611

774,626

317,119

384,628 649,548 264,920

829,427 1,604,053 774,626

512,308 829,427 317,119

3,140

1,466

(4,367)

(4,003)

1,237

21,527

5,952

22,012

144,650

192,968

161,769

187,493

(57,522)

(41,393)

(63,699)

(53,658)

2,915

(47,550)

(4)

(33)

(54,460)

22,924

(83,583)

(1,087)

28,326

(9,096)

34,975

(8,874)

(225)

(50,021)

5,058

(58,517)

15,837

(5,699)

23,860

(945)

(68,160)

(10,150)

(99,255)

(31,839)

150,945

144,563

(134,541)

(76,567)

47,396

(370,788)

(93,685)

(245,880)

865,126

694,667

784,861

532,866

Statement of cash flows | December 31, 2020 and 2019

(In thousands Reais)

Revenues

Sale of merchandise, products and services Other income

Income from construction of own assets Variation of the fair value of biological assets

Inputs acquired from third parties Raw materials used

Cost of goods, merchandise and services sold Materials, Energy, Third-party services and other Loss/recovery of asset values

Adjustment to fair value of biological assets

Gross added valueRetentions

Depreciation, amortization and depletion Amortization of right of use

Net added value produced Added value received as transfer Equity Income

Financial income Other

Total added value payableParent Company

Consolidated

Parent Company

Consolidated

12/31/2020

12/31/2019

12/31/2020

12/31/2019

12/31/2020

12/31/2019

12/31/2020

12/31/2019

Distribution of added value

3,156,501

36,475

2,341,916

9,799

3,724,727

2,765,663

79,866

19,848

93,189

Taxes, duties and contributions Federal

1,923,434

1,249,611

145,857

76,158

71,594

2,158,089

1,275,024

230,457

124,435

145,367 -

110,383

94,145

676,476

3,962,641

2,893,751

470,442

775,534

504,751

4,690,510

3,384,407

(1,002,721)

State Municipal PersonnelDirect remuneration

(60,853)

(806,791)

75,582 -

490

576

292,227

268,653

164,448

163,444

(1,207,995)

(949,685)

(15,100)

(72,101)

(57,414)

(640,819)Benefits FGTS

(556,888)

(92)

(743,858)

(655,952)

(92)

(659,349)

Third-party capital remuneration Interest

(471,174)

221,541

118,101

8,426

5,746

490

588

344,903

312,718

198,077

191,733

111,414

89,520

16,365

15,689

996,676

593,286

975,267

496,068

(750,996)

(524,266)

128,292

103,272

18,534

17,713

1,071,781

493,080

1,049,958

467,083

Rents

21,409

97,218

21,823

55,747

(2,363,742)

(1,850,045)

(2,774,950) (2,187,409)Remuneration of own capital

488,674

311,514

510,948

315,041

1,598,899

1,043,706

1,915,560

1,196,998

Dividends

Retained Earnings/Loss for the period

Part. Interest of non-controlling shareholders in retained earnings

120,790 367,884 -

73,754 237,760 -

120,790 367,884 22,274

73,754 237,760 3,527

(83,781) (119,580) 1,395,538

(76,595) (65,787) 901,324

(119,686) (73,663) 1,722,211

(105,810) (43,336) 1,047,852

See accompanying notes.

177,399 344,732 5,765 527,896

175,243 170,915 2,129 348,287

- 429,678 6,200 435,878

- 203,659 23,513 227,172

1,923,434

1,249,611

2,158,089

1,275,024

Notes to the financial statements

1. Operations

SLC Agrícola S.A., founded in 1977, hereinafter referred to as "Parent Com-pany", "SLC" or "Company", and its subsidiaries (jointly referred to as "the Group" or "Consolidated"), has its headquarters located in the city of Porto Alegre, RS, Brazil and has as its corporate purpose the activities of agriculture and cattle raising; production and marketing of seeds and seedlings; pro-cessing and marketing of its products, being able to export and import goods for its own use and consumption; supply of primary agricultural goods and products and goods in general; reception, cleaning, drying and storage ser-vices of cereals for third parties; provision of services with agricultural ma-chinery and implements for third parties; trade, import and export of agricul-tural products; agro-industrial activity of industrialization of sugar cane, alco-hol and its derivatives; and participation in other companies; lease of own property.

On September 1, 2020, the Company and subsidiaries began its cultivation of the 2020/2021 crop with operations at sixteen production units and a total planted area of 468.2 thousand hectares, including company-owned areas and areas leased from third parties and realted parties, which are located in six Brazilian states: Mato Grosso, Mato Grosso do Sul, Goiás, Bahia, Piauí and Ma-ranhão.

Effects of COVID-19 on the Financial Statements

In compliance with Circular Letter SNC / SEP 02/2020, which deals with guid-ance on the disclosure of the potential impacts of COVID-19 on the financial statements of publicly-held companies, carefully considering the main risks and uncertainties arising from this analysis and observing the accounting standards, Company worked, especially in the analysis of the following possible impacts:

a)Actions taken by the Company as a result of COVID-19 and possible impacts on its internal controls;

b) b) Increased risk of losses on financial assets (CPC 48 - Financial In-struments);

c) c) Realizable value of inventories (CPC 16 - Inventories);
d) d) Impairment of fixed and intangible assets (CPC 01 - Impairment of Assets);
e) e) Measurement of the fair value of Biological assets and investment properties;
f) f) Impacts on revenue for the period and margins;
g) g) Analysis of the Company's operational continuity;
h) h) Cash flow, impacts on access to credit for loans and financing and covenants.

The Company carried out a study of the items listed above and did not identify any relevant impacts on its individual and consolidated interim financial state-ments. In this sense, it is important to comment that the operations of the Company and its subsidiaries are being accompanied by a crisis management model and strategies are being set up so that the Company can cross this period with the least possible negative impact. The Company acted quickly and assertively in the creation of a Committee, which was responsible for the prep-aration and continuous monitoring of the COVID-19 Contingency Plan and the COVID-19 Coping Guide, two instruments that aim at the identification of risks and vulnerabilities, in addition to establishing protection, control and contain-ment measures against eventual proliferation of COVID-19 within the scope of the Company and its subsidiaries.

In relation to its business, it is worth mentioning that the Company is part of a sector considered essential, in relation to the maintenance of its productive activity, since, among its three main products, two are used by the food and beverage industry as material -cousin. Another factor that deserves mention and that directly involves the Company is the strong demand for exports,

favored by the appreciation of the dollar. Regarding the logistics chain, it is worth noting that there were no significant disruptions in the operations and export logistics, as well as in the operations for receiving inputs, which are already largely acquired.

Regarding firm sales commitments to customers, the Company does not expect material changes in its composition, since its origin lies in a strong correlation with the way in which negotiations are carried out and the players chosen as commercial partners, having not been identified, to date, issues related to these commitments.

Additionally, at times like this, concerns about cash, financial leverage, cost efficiency and debts subject to exchange variation are accentuated and, in this sense, the Company is well positioned to overcome the effects arising from COVID-19, being possible to highlight also the risk management policy applied by the Company consistently in recent years. Short- and long-term liquidity are preserved and, even eventual changes in shipments and receipts, are sized so that they do not materially affect the Company's financial position. Accordingly, the Company has not identified any relevant risks in relation to its ability to continue operating.

2. Summary of significant accounting practices

a) Declaration of accounting

The individual and consolidated financial statements were prepared in accord-ance with accounting practices adopted in Brazil, which comprise the provi-sions of corporate legislation, as provided for in Law No. 6404/76 with amend-ments to Law No. 11638/07 and Law No. 11.941/09, and the accounting pro-nouncements, interpretations and guidance issued by the Accounting Pro-nouncements Committee ("CPC"), approved by the Brazilian Securities and Ex-change Commission ("CVM") and also in accordance with the International Ac-counting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and interpretations issued by the International Financial Re-porting Interpretations Committee ("IFRIC").

The Company's management believes that all the relevant information in the financial statements is being evidenced and corresponds to that used by it in its management, as provided for in OCPC 7 - Evidence in the Disclosure of General Purpose Financial-Accounting Reports. We highlight, even though the accounting policies considered immaterial were not included in the financial statements.

The issuance of the individual and consolidated financial statements was au-thorized by the Board on March 17, 2021.

b) Basis of measurement

The individual and consolidated financial statements have been prepared based on historical cost, except for the following material items recognized on the statements of financial position:

 Derivative financial instruments measured at fair value;
 Biological assets, not classified as carrying plants, measured at fair value, using the market approach, less sales expenses and costs to be incurred from pre-harvest;
 Investment property, measured at fair value;
 Share-based payment transactions, measured at fair value at the grant date.

c) Functional currency and foreign currency transactions and balances

The individual and consolidated financial statements are presented in Brazilian Real (BRL), which is the functional currency of the Company and its subsidiar-ies.

Foreign currency transactions are initially recorded at the exchange rate of the functional currency prevailing on the transaction date. Monetary assets and liabilities denominated in foreign currency are converted at the functional cur-rency exchange rate prevailing at the balance sheet date.

Foreign exchange gains and losses resulting from the settlement of such trans-actions and from translation at year-end exchange rates on monetary assets and liabilities in foreign currencies are recognized in the income statement, except when deferred in equity as qualified cash flow hedge transactions.

d) Transactions eliminated on consolidation

Intragroup balances and transactions, and any unrealized revenues or ex-penses derived from intragroup transactions, are eliminated in the preparation of the consolidated financial statements. Unrealized gains arising from trans-actions with investees recorded by equity method are eliminated against the Group's investment in the investee.

Unrealized losses are eliminated in the same way as unrealized gains are elim-inated, but only to the extent that there is no evidence of impairment loss.

e) Significant accounting judgments, estimates and assumptions

The preparation of the individual and consolidated financial statements re-quires the use certain critical accounting estimates and also the exercise of judgment by the Management in the process of applying accounting policies, for the accounting for certain assets, liabilities, income and expenses.

Estimates and exercise of judgment are continually revisited and the results of this process are recognized on a timely basis and in any affected future peri-ods. Actual results may differ from these estimates when it is actually carried out.

Information on judgments, estimates and accounting assumptions that may result in significant effects on the amounts recognized in the financial state-ments financial statements are presented below:

Grades

Nature

3.c and 8

3.e, 14 and

3.q and 13

3.j and 19

3.h and 10

3.i and 25

3.k and 28

Measurement of the fair value of biological assets

Selection of useful lives of property, plant and equipment and intangible assets

Discount rate applied in measuring lease liabilities

Provision for tax, environmental, labor and civil risks and contingent as-sets

Deferred income and social contribution taxes Measurement of the fair value of financial instruments

Measurement of the fair value of share-based payment transactions on the grant date

Measurement of the fair value of investment properties

3. Accounting policies

The accounting policies described in detail below have been applied consist-ently for all years presented in these individual and consolidated financial statements.

a) Revenue recognition

Revenue is recognized when control of the product or service is transferred to the customer for an amount that reflects the consideration that the Company expects to be entitled to. Revenue is measured at the fair value of the consid-eration received, excluding discounts, rebates and taxes or sales charges. The following specific criteria must also be met before revenue recognition:

Sale of goods | Operating revenue from the Sale of goods in the normal course of business is recognized in income, when control of the products is transferred to the customer and the Company and its subsidiary no longer have control or responsibility over the products sold.

Land sales | Some subsidiaries are engaged in land sales. Sales take place in line with the current real estate gains realization strategy, being recognized as provided for in the Revenue recognition section above.

In the consolidated financial statements, these revenues are classified in the group "other operating income", as they do not represent the main object of the Group's business.

b) Inventories

Agricultural produce from biological assets is measured at fair value less sell-ing expenses at the point of harvest when it is transferred from the biological asset group to the inventory group and measured at the weighted average of fair harvest values.

Inventories of seeds, fertilizers, pesticides, fuels, lubricants, packaging and wrapping material, spare parts and other Inventories were valued at average purchase cost.

Provisions for slow-moving or obsolete Inventories are set up when deemed nec-essary by management.

The provision for adjustment of inventory to market value of agricultural prod-ucts is set up when the fair value recorded in the inventory is higher than the realizable value. The realizable value is the estimated selling price in the nor-mal course of business less the estimated costs necessary to sell them.

c) Biological assets

The biological assets correspond substantially to the soybeans, corn, cotton and other minor crops, whose agricultural products are sold to third parties. They are measured by the expenses incurred with the formation of the crops up to the point of biological transformation, when they are valued at fair value, deducting sales expenses and costs to be incurred. At this time the transfor-mation of the biological asset is significant and the impact on the value is material.

The fair value measurement of biological assets is classified as level 3 - Assets and liabilities whose prices do not exist or those prices or valuation techniques are supported by a small or non-existent market, unobservable or illiquid.

This measurement is an accurate estimate based on various assumptions and methodologies adopted by the Company's management, for which internal and external information was used, mainly related to: productivity volume, profita-bility, costs necessary to put in sale condition, prices and discount rate.

The fair value of biological assets is determined using discounted cash flow methodology, considering basically:

(a) cash inflows obtained by multiplying (i) estimated production (hec-tares planted multiplied by estimated productivity), and (ii) market price/prices sold.
(b) Cash outflows represented by the total cost of production for the crop such as: (i) seeds, fertilizers, agricultural pesticides, depreciation and labor applied to crops.

Based on the estimated revenues and costs, the Company determines the dis-counted cash flows to be generated and brings the corresponding amounts at present value, considering a discount rate, compatible for investment remu-neration. Changes in fair value are recorded under the biological assets

heading and are offset against "Changes in fair value of biological assets" in the statement of income.

The valuation of biological assets at fair value considers certain estimates, which are subject to uncertainties and may have effects on future results as a result of their variations.

d) Investments (Parent Company)

Investments in subsidiary are determined by the equity method of accounting, as CPC18 (R2) (IAS 28), for the purpose of the parent company's financial statements.

After the application of the equity method for the purposes of the parent com-pany's financial statements, the Company determines whether it is necessary to recognize an additional impairment loss on the Company's investment in each of its subsidiaries. The Company determines, at each balance sheet clos-ing date, whether there is objective evidence that investments in subsidiaries have suffered impairment losses. If so, the Company calculates the amount of the impairment loss as the difference between the subsidiary's recoverable amount and book value and recognizes the amount in the parent company's income statement.

e) Fixed assets

Recognition and measurement | Property, plant and equipment items are stated at historical acquisition or construction cost, net of accumulated depre-ciation and impairment losses.

The cost includes expenses that are directly attributable to the acquisition of an asset. The cost of assets built by the Company itself includes:

 The cost of materials and direct labor;
 The costs of dismantling and restoring the site where these assets are located;
 Costs of loans on qualifying assets;
 Any other costs to place the assets on the premises and conditions neces-sary for them tobe able to operate in the manner intended by Management.

When parts of an asset item have different useful lives, they are recorded as indi-vidual asset items (main components). Gains or losses on the disposal of an item of property, plant and equipment (calculated as the difference between the pro-ceeds from disposal and the book value of the asset), are recognized in other op-erating income (expenses) in profit or loss.

Subsequent costs | Subsequent expenses are capitalized to the extent that it is probable that future benefits associated with the expenses will be received by the Group. Recurring maintenance and repair expenses are recorded in the result.

Depreciation | Property, plant and equipment items are depreciated using the straight-line method in income for the year based on the estimated economic use-ful life of each component. Leased assets are depreciated over the shorter of the estimated useful life of the asset and the term of the lease unless it is certain that the Group will obtain ownership of the asset at the end of the lease. Land and land plots are not depreciated.

Fixed asset items are depreciated from the date they are installed and are availa-ble for use, or in the case of assets built in-house, from the day construction is completed and the asset is available for use.

The estimated useful lives for the current year are as follows:

Description

Rate

Average lifetime

In the year ended December 31, 2020, the Company found that its fixed assets were not above recoverable value, and consequently no provision for impair-ment of fixed assets was required.

The Company calculates for certain asset classes the residual value consider-ing the revenue it would obtain from the sale less estimated selling expenses if the asset had the expected age and condition at the end of its useful life.

Assets' residual values and useful lives and depreciation methods are reviewed at year end, and are adjusted on a prospective basis, if applicable.

f) Reduction to recoverable value

Financial assets (including receivables) | A financial asset not measured at fair value through profit or loss is evaluated at each reporting date to determine whether there is objective evidence that an impairment loss has occurred. An asset has a loss in its recoverable amount if objective evidence indicates that a loss event occurred after the initial recognition of the asset, and that loss event had a negative effect on projected future cash flows that can be reliably estimated.

Soil correction and development	10%	10 years
Buildings and improvements	3.33%	30 years
Furniture and fixtures	10%	10 years
Office equipment and facilities	16.67%	6 years
Agricultural equipment and industrial facilities	9.09%	11 years
Vehicles	8.33%	12 years
Other	10%	10 years

An item of property, plant and equipment is written off when sold or when no future economic benefit is expected from its use or sale. Any gain or loss re-sulting from the write-off of the asset (calculated as the difference between the net sale value and the book value of the asset) is included in the income statement in the year the asset is written off.

The objective evidence that financial assets have lost value may include non-payment or delayed payment by the debtor, restructuring of the amount due to the Group under conditions that the Group would not consider in other transactions, indications that the debtor or issuer will go bankrupt, or the dis-appearance of an active market for a security. In addition, for an equity instru-ment, a significant or prolonged decline in its fair value below its cost is ob-jective evidence of impairment.

Financial assets measured at amortized cost | The Group considers evidence of loss of value of assets measured at amortized cost, both at the individualized and collective levels. Individually significant assets are assessed for loss of spe-cific value. All individually significant receivables and investment securities held to maturity that are identified as not having suffered a loss in value are then collectively valued for any loss in value that has occurred but has not yet been identified. Individually important assets are collectively valued for the loss in value by grouping these securities together with similar risk characteristics.

CPC 48 (IFRS 9), requires the Company to perform a risk assessment of ex-pected credit losses, evaluating the credit with the counterparty and recording the effects when there are indications of losses. The Company has evaluated its financial assets and established the values found to be immaterial.

Non-financial assets | The book values of the Group's non-financial assets, other than biological assets, investment property, inventories and deferred in-come and social contribution taxes, are reviewed at each reporting date to de-termine whether there are indications of impairment losses. If such indication occurs, the asset's recoverable amount is estimated.

g) Government subsidies

Government grants are recognized when it is reasonably certain that the ben-efit will be received and that all the corresponding conditions will be met. When the benefit refers to an item of expense, it is recognized as revenue over the period of the benefit, systematically in relation to the costs whose benefit is intended to offset.

In line with Article 30 of Law 12.973 / 14, this subsidy was excluded from the calculation basis for income tax and social contribution, as it is an investment subsidy.

The investment subsidy amount cannot be distributed to shareholders as divi-dends, which is why the annual benefit amount was transferred from the re-tained earnings item to the tax incentive reserve, in Shareholders' Equity. This reserve can only be used to be added to the share capital or to absorb losses.

h) Taxes

Income and social contribution taxes | The Income and social contribution taxes for the current and deferred fiscal year are calculated based on the rates of 15%, plus an additional 10% on taxable income exceeding R$ 240 per year for income tax and 9% on taxable income for social contribution on net income, and take into account the offsetting of tax losses and negative basis of social contribution, which for the rural activity is up to 100% of the annual actual profit and in the other activities is limited to 30% of the annual taxable income.

For companies taxed by the presumed profit, the Income Tax and Social Con-tribution for the current year, are calculated on a cash basis, based on the rates of 15%, plus an additional 10% on the basis of a surplus of R$ 240 an-nually for income tax and 9% on the basis of presumption for social contribu-tion on net income.

Income and social contribution taxes expenses include current and deferred taxes. Current and deferred tax are recognized in profit or loss unless they are related to the business combination, or items directly recognized in equity or other comprehensive income.

Current tax is the tax payable or receivable expected on the taxable profit or loss for the year at the tax rates enacted or substantively enacted at the date of presentation of the financial statements and any adjustment to the taxes payable in respect of prior years.

Deferred tax is recognized with respect to temporary differences between the book values of assets and liabilities for accounting purposes and the corre-sponding amounts used for taxation purposes.

Deferred tax is measured at the rates applicable to temporary differences when reversed, based on laws that have been enacted or substantively enacted by the reporting date of the financial statements.

In determining current and deferred income taxes, the Company takes into consideration the impact of uncertainties related to tax positions taken and whether additional income and interest tax payments must be made. The Com-pany believes the provision for income tax in liabilities is adequate for all out-standing tax periods based on its assessment of several factors, including in-terpretations of tax laws and past experience. This assessment is based on estimates and assumptions that may involve a series of judgments about fu-ture events. New information can be available which would cause the Company to change its judgment as to the adequacy of the existing provision; such changes will impact the income tax expense for the year in which they are made, if applicable.

A deferred income tax and social contribution asset and liability are compen-sated when there is a legally enforceable right of the Company to compensate the current asset and liability, and if they correlated to the income tax esti-mated by the same tax agency over the same taxable entity. A deferred income tax asset is recognized for tax losses, tax credits and unused deductible tem-porary differences when it is probable that future taxable profit will be availa-ble against which it will be used.

Deferred income and social contribution tax assets are reviewed at each re-porting date and will be reduced to the extent that their realization is no longer probable.

Sales taxes | Income and assets are recognized, net of sales taxes, except for:

 When sales taxes incurred on the purchase of goods or services are not recoverable from the tax authorities, in which case the sales tax is recog-nized as part of the cost of acquisition of the asset or expense item, as appropriate;
 When the amounts receivable and payable are presented together with the amount of sales taxes;
 The amount net of sales tax, recoverable or payable, is included as a com-ponent of the amounts receivable or payable on the balance sheet.

Sales revenues are subject to the following taxes and contributions at the fol-lowing basic rates:

Rates

i) Financial instruments

Non-derivative financial assets | The Group recognizes loans and receivables initially at the date they originated. All other assets are initially recognized on the date of negotiation when the Group becomes a party to the contractual provisions of the instrument.

The Group writes-off a financial asset when the contractual rights to the cash flows from the asset expire, or when the Group transfers the rights to receive the contractual cash flows from a financial asset in a transaction in which es-sentially all risks and rewards of ownership of the financial asset are trans-ferred. Any interest that is created or retained by the Group in financial assets is recognized as an individual asset or liability.

Financial assets or liabilities are offset and the net amount shown on the bal-ance sheet when, and only when, the Group has the legal right to offset the amounts and intends to settle on a net basis or to realize the assets and settle the liabilities simultaneously.

The Group classifies non-derivative financial assets as amortized cost.

Amortized cost - Financial assets with fixed or calculable payments that are not quoted on the market. Such assets are initially recognized at fair value plus any attributable transaction costs. They are measured at amortized cost using the effective interest method, less any impairment loss. They cover ac-counts receivable from customers and other receivables.

ICMS - Value-Added Tax on Sales and Services	0% to 18.00%
COFINS - Contribution for social security funding	7.60%
PIS - Social Integration Program	1.65%
Rural Worker Assistance - Funrural	2.05%

In the income statement, revenues are shown net of these taxes. The consid-eration is in taxes payable on liabilities. The amounts of taxes payable are offset against any tax credits arising from the purchase of inputs and property, plant and equipment, on farms that allow for credit.

Cash and cash equivalents - Cash and cash equivalents comprise cash balances and financial investments with original maturities of three months or less from the date of contracting. Items classified as cash and cash equivalents are sub-ject to an insignificant risk of change in value, and are used in the management of short-term obligations.

Non-derivative financial liabilities | The Group recognizes debt securities issued and subordinated liabilities initially at the date they arise. All other financial lia-bilities are initially recognized on the trade date on which the Group becomes a party to the contractual provisions of the instrument. The Group discharges a fi-nancial liability when its contractual obligations have been discharged, cancelled or expired.

The Group classifies non-derivative financial liabilities in the category of other fi-nancial liabilities. Such financial liabilities are recognized initially at fair value plus any attributable transaction costs. After initial recognition, these financial liabili-ties are measured at amortized cost using the effective interest method.

The Group has the following non-derivative financial liabilities: financing and loans, suppliers, loan agreements and related party leases, third-party leases, se-curities payable and other accounts payable.

Derivative financial instruments, including hedge accounting | The Company uses derivative financial instruments such as currency forward contracts, commodities forward contracts and interest rate swaps to hedge against the risk of changes in foreign exchange rates, the risk of changes in commodities prices and the risk of changes in interest rates. Embedded derivatives are separated from their master contracts and recorded individually if the economic characteristics and risks of the master contract and the embedded derivative are not intrinsically related; or an individual instrument with the same conditions as the embedded derivative meets the definition of a derivative, and the combined instrument is not measured at fair value through profit or loss.

At the time of the initial hedge assignment, the Group formally documents the relationship between the hedge instruments and the hedged items, including the risk management objectives and strategy in conducting the hedging transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Group assesses whether the forecasted or contracted hedging items remain in the same amount and term of the hedging instrument. In addition, continuous monitoring is performed to check whether the hedgeinstruments are expected to be "highly effective" in offsetting changes in the fair value or cash flows of the respective hedged items during the year for which the hedge is designated.

Derivatives are initially recognized at fair value; attributable transaction costs are recognized in profit or loss as incurred. After initial recognition, derivatives are measured at fair value, and changes in fair value are recorded as described below.

Hedges of cash flows | When a derivative is designated as a hedging instrument in a hedge of variability in cash flows attributable to a specific risk associated with a recognized asset or liability or a highly probable forecast transaction that could affect profit or loss, the effective portion of the changes in the derivative's fair value is recognized in other comprehensive income and presented in the equity valuation reserve. Any ineffective portion of the changes in the fair value of the derivative is recognized immediately in profit or loss.

When the hedged item is a non-financial asset, the amount recognized in other comprehensive income is transferred to the asset's book value when the asset is realized. The value recognized in other comprehensive income is reclassified to net income in the same year as the hedged cash flows affect net income on the same line in the income statement as the hedged item. If there are no longer expectations that the forecast transaction will occur, then the balance in other comprehensive income is recognized immediately in the income statement. In other cases the value recognized in other comprehensive income is transferred to net income in the same fiscal year as the hedged item affects the result.

If the hedging instrument no longer meets the criteria for hedge accounting, ex-pires, i.e. sold, closed, exercised, or has its designation revoked, then hedge ac-counting is discontinued prospectively. The retained earnings, previously recog-nized in other comprehensive income and presented in the equity valuation re-serve, remain there until the forecast transaction affects profit or loss.

For the years ended December 31, 2019 and 2018, the Group had operations clas-sified as cash flow hedge.

j) Provisions

A provision is recognized, based on a past event, if the Group has a legal or constructive obligation that can be reliably estimated, and it is probable that an economic resource will be required to settle the obligation.

Provisions for tax, civil, environmental and labor risks | Provisions are made for all disputes relating to legal proceedings for which an outflow of resources is likely to be made to settle the litigation/obligation and a reasonable esti-mate can be made. The evaluation of the probability of loss includes the eval-uation of available evidence, the hierarchy of laws, available jurisprudence, the most recent court decisions and their relevance in the legal system, as well as the evaluation of external lawyers. The provisions are reviewed and adjusted to consider changes in circumstances, such as applicable statute of limitations, tax inspection findings or additional exposures identified based on new mat-ters or court decisions.

k) Share-based payment

The Company has a Stock Option Plan and a Restricted Stock Plan for directors and managers, under the administration of a management committee, created by the Board of Directors. In the years ended December 31, 2020 and 2019, the Company measured and recognized these benefits as an expense in ac-cordance with CPC 10 (R1) (IFRS 2). Details of the Company's programs can be found in note 27.

The fair value of share-based payment benefits at the grant date is recognized as personnel expenses, with a corresponding increase in equity, for the period in which the employees unconditionally acquire the right to the benefits. The amount recognized as an expense is adjusted to reflect the number of shares for which there is an expectation that the conditions of service and non-market vesting conditions will be met, so that the amount finally recognized as an expense is based on the actual number of awards meeting these conditions at vesting date. For share-based payment awards with a non-market vesting con-dition, the fair value at grant date is measured to reflect such conditions and there is no change for differences between expected and actual benefits.

l) Financial income and financial expenses

Financial income includes interest income, foreign exchange variation in re-ceivables and payables balances, changes in fair value of financial assets measured at fair value through profit or loss, gains on hedge instruments that are recognized in profit or loss and reclassifications of gains previously recog-nized in other comprehensive income. Interest income is recognized in income using the effective interest method.

Financial expenses include interest expense on loans, foreign exchange varia-tion in accounts receivable and payable balances, changes in fair value of fi-nancial assets measured at fair value through profit or loss, impairment losses recognized on financial assets (except receivables), AVP- present value adjust-ment of lease contracts and losses on hedge instruments that are recognized in profit or loss. Loan costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are measured in income using the effective interest method.

m) Earnings per share

The basic calculation of earnings per share is made by dividing net income for the year, attributed to the holders of the parent company's common shares, by the weighted average number of common shares outstanding during the year in accordance with technical pronouncement CPC 41 (IAS 33). The calculation of diluted earnings per share is the division of net income for the year adjusted for any dividends or other items related to dilutive potential common shares that have been deducted to determine profit or loss attributable to the holders of the Company's common equity, any interest recognized in the period related to the dilutive potential common shares, and any other changes in revenues or expenses that would result from the conversion of the dilutive potential com-mon shares into the weighted average number of common shares that would be issued on the conversion of all dilutive potential common shares into com-mon shares (Note 22.i).

n) Employee benefits

Benefits granted to the Company's employees and managers include, in addi-tion to fixed compensation (salaries and social security contributions INSS, vacation, 13th salary), variable compensation such as profit sharing and a stock option plan and restricted stock for directors and managers. These ben-efits are recorded in income for the year when the Company has an accrued obligation as incurred.

o) Segment Information

The Company concentrates its activities on the production and sale of agricul-tural products (soybeans, corn, cotton and other minor crops) and on the ac-quisition and development of land for agriculture, thus it is organized in two business segments: agricultural production and land investments. The operat-ing results are regularly reviewed by the Company's chief operating manager for decisions on resources to be allocated to the segment and for the evalua-tion of its performance.

The Company's products are not controlled and managed by Management as independent segments, and the Company's results are monitored, monitored and evaluated in an integrated manner. There are no other segments or any aggregation of operating segments.

p) Statements of value added and cash flows

The Group has prepared individual and consolidated Value Added Statements (VAS) in accordance with CPC 09 - Value Added Statement (NBC TG 09), which are presented as an integral part of the financial statements in accordance with BRGAAP applicable to public companies, while for IFRS they represent supplementary financial information.

The Group has prepared individual and consolidated cash flow statements in accordance with technical pronouncement CPC 03 (R2) - Cash Flow Statement (IAS 7), using the indirect method.

q) Leasing operations

The Company recognizes the lease liability and the right to use asset on the date the lease agreement is signed. The Company's main contracts refer ra-tions, in addition to other less relevant contracts that involve the rental of cotton and vehicles.

The Company's management considers as a lease component only the mini-mum fixed amount for purposes of measuring the lease liability. The measure-ment of the lease liability corresponds to the total of future lease and rental payments, net of tax effects, adjusted to present value, considering the nominal discount rate.

The incremental funding rate, used by the Company for discounting, is com-posed of the "weighted curve of the CDI / Pre", added to the Company's credit risk and to a risk spread of the underlying asset.

It is worth noting that the land lease contracts are indexed by the price of the sack of soybeans in the region of each production unit, with the values of the right to use assets and liabilities being converted into Reais using the price of soybeans in each region. Payment amounts may vary significantly up to the time of payment, depending on the change in the soybean market value in each region.

The calculation methodology used is the modified retrospective method con-sidering the value of the right to use the asset measured at the amount equiv-alent to the lease liability, calculated at present value using the lessee's incre-mental interest rate on the transition date.

For the cases below, the right-of-use asset and the lease liability were not measured, as they present uncertainty in the measurement of the value (totally variable price), do not present a minimum amount to be paid or are of short duration:

(a) Partnership contracts: contracts that determine that the Company pays the lessor, per year / harvest period, percentage of the production earned, the price being totally variable;

(b) Additional costs linked to productivity: in addition to the lease price, some contracts provide for an increase in value, through additional productivity, resulting from the arithmetic average of the productivity obtained with the agricultural exploration by the lessee. Contracts with this type of char-acteristic are measured at the minimum fixed amount, with the additional linked to productivity being considered as totally variable; and
(c) Other leases of machinery and equipment: contracts have variable value, based on the use of the underlying assets, in addition to having a term of less than one year.

Impact on income for the year | The leases are accounted for as financial leases, with a financial component, which reduces the cost of production, due to the effect of re-cording the adjustment to present value in the financial result.

r) New or revised standards

Changes in CPC 15 (R1): Definition of business | The amendments to CPC 15 (R1) clarify that, to be considered a business, an integrated set of activities and assets must include, at a minimum, an input - input of resources and a substantive pro-cess that, together, contribute significantly to the capacity to generate output - output of resources. In addition, he clarified that a business can exist without in-cluding all the inputs - inputs of resources and processes necessary to create out-puts - outputs of resources. These changes had no impact on the Group's individ-ual and consolidated financial statements, but may impact future periods if the Group enters into any business combinations.

Changes to CPC 38, CPC 40 (R1) and CPC 48: Reference Interest Rate Reform | The amendments to Pronouncements CPC 38 and CPC 48 provide exemptions that apply to all protective relationships directly affected by the reference interest rate reform. A protection relationship is directly affected if the reform raises uncertainties about the period or the value of cash flows based on the reference interest rate of the hedged item or hedging instrument. These changes have no impact on the Group's individual and consolidated financial statements, as it does not have interest rate hedging rela-tionships.

Changes to CPC 26 (R1) and CPC 23: Material definition | The amendments provide a new definition of material that states, "the information is material if its omission, distortion or obscurity can reasonably influence decisions that primary users of gen-eral purpose financial statements make based on those financial statements, which provide financial information on entity-specific report ". The amendments clarify that the materiality will depend on the nature or magnitude of the information, individu-ally or in combination with other information, in the context of the financial state-ments. Distorted information is material if it could reasonably be expected to influ-ence decisions made by primary users. These changes had no impact on the individ-ual and consolidated financial statements.

Review in CPC 00 (R2): Conceptual Framework for Financial Reporting | The state-ment reviews some new concepts, provides updated definitions and recognition cri-teria for assets and liabilities and clarifies some important concepts.

These changes had no impact on the Group's individual and consolidated financial statements. Changes in CPC 06 (R2): Benefits Related to Covid-19 Granted to Lease-holders in Lease Contracts.

The amendments provide for concession to tenants in the application of the guide-lines of CPC 06 (R2) on the modification of the lease, when accounting for the related benefits as a direct consequence of the Covid-19 pandemic. As a practical expedient, a tenant may choose not to evaluate if a benefit related to Covid-19 granted by the lessor is a modification of the lease. The lessee who makes this option must account for any change in the lease payment resulting from the benefit granted in the lease contract related to Covid-19 in the same way that it would account for the change by applying CPC 06 (R2) if the change was not a modification of the contract lease. These changes had no impact on the individual and consolidated financial state-ments.

There are no standards and interpretations issued and not yet adopted that, in the opinion of the Management, may have a significant impact on the result or on the shareholders' equity disclosed by the Company.

4. Consolidated financial statements

The consolidated financial statements include the operations of the Company and of the following subsidiaries, whose equity interest as of the reporting date is as follows:

Main activity

Companies

Culture of soybean, corn and herd. Culture of cotton and soybean. Culture of soybean, corn and cotton.

Investments in other companies or commercial ventures and leasing.

Fazenda Pioneira Empreendimentos Agrícolas S.A. SLC-MIT Empreendimentos Agrícolas S.A. Fazenda Perdizes Empreedimentos Agrícolas Ltda. SLC Investimentos Agrícolas Ltda

Fazenda Parnaíba Empreendimentos Agrícolas Ltda. Fazenda Planorte Empreendimentos Agrícolas Ltda. Fazenda Pamplona Empreendimentos Agrícolas Ltda Fazenda Planalto Empreendimentos Agrícolas Ltda. Fazenda Palmares Empreendimentos Agrícolas Ltda Fazenda Parnaguá Empreendimentos Agrícolas Ltda. Fazenda Paiaguas Empreendimentos Agrícolas S.A.

Purchasing and sale, lease, construction and managing of real estateSLC Perdizes Empreendimentos Agrícolas S.A. SLC LandCo Empreendimentos Agrícolas S.A. Fazenda Planeste Empreendimentos Agrícolas Ltda. Fazenda Piratini Empreendimentos Agrícolas Ltda Fazenda Panorama Empreendimentos Agrícolas Ltda. Fazenda Palmeira Empreendimentos Agrícolas Ltda. Fazenda Parceiro Empreendimentos Agrícolas Ltda. Fazenda Paineira Empreendimentos Agrícolas Ltda.

SubsidiariesDirectsIndi-rectsLocation (State)

50.0

52.2

- - 50.1

Mato Grosso - MT Rio Grande do Sul - RS

100.0

- - - - - - - -

Mato Grosso - MT Rio Grande do Sul - RS

100.0

Maranhão - MA

100.0

Mato Grosso - MT Rio Grande do Sul - RS Rio Grande do Sul - RS Rio Grande do Sul - RS Rio Grande do Sul - RS Rio Grande do Sul - RS

100.0

- - - - - - 6.1

100.0

81.2

93.9

Rio Grande do Sul - RS Rio Grande do Sul - RS Rio Grande do Sul - RS Rio Grande do Sul - RS Rio Grande do Sul - RS Rio Grande do Sul - RS Rio Grande do Sul - RS Rio Grande do Sul - RS

O período das demonstrações financeiras das controladas incluídas na consolidação é coincidente com o da Controladora e as políticas contábeis foram aplicadas de forma uniforme nas empresas consolidadas e são consistentes com aquelas utilizadas no período anterior.

Em Assembleia Geral Extraordinária, realizada no dia 10 de março de 2020, da controlada SLC-MIT Empreendimentos Agrícolas S.A, foi o aprovado aumento de capital no valor de R$ 47, sendo totalmente integralizado pela Companhia, passando essa a ter o montante de 52,2% do capital total da controlada. Essa subscrição exclusiva por parte da SLC Agrícola S.A. teve anuência da outra acionista, Mitsui & Co. Ltd.

5. Cash and cash equivalents and short-term interest earning bank deposits

Consolidated
Description
12/31/2020	12/31/2019	31/12/2020	31/12/2019
Cash and cash equivalents in R$	-	80,080	84	80,104	105
Forex exchange cash2	-	15,073	5,228	15,073	6,656
CDB-DI	100.75% of CDI1	1,224,137	645,154	1,508,558	820,891
Repurchase and resale commitments	-	-	28,889	-	32,360
LAM	100.00% of CDI1	-	23,843	318	24,755
Other investments	70.58 % of CDI1	663	652	663	652
1,319,953	703,850	1,604,716	885,419
Cash and cash equivalents	1,319,290	649,548	1,604,053	829,427
CP Interest earnings bank deposits	-	53,652	-	55,342
LP Interest earnings bank deposits	663	650	663	650
1. Average yield on December 31, 2020.

2. Amounts in reais, converted by the dollar P-tax purchase on December 31, 2020.

YieldsParent Company

The financial operations contracted by the Company are represented by investments in bank certificates of deposit and lease bills, at market prices and rates, updated by the income earned up to December 31, 2020, not exceeding the trading value.

Long-term financial investments are reciprocated (collateralized operations), which represent in the non-current assets the amount of R$ 663 of the portfolio in the parent company and in the consolidated.

The Group's exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in Note 25.

The increase in the balance of cash and cash equivalents is mainly due to the positive operating cash flow in the period, the release of the values from escrow account regarding with the land sale (Parnaíba Farm) made in November 2019, as well as the funding of CRA (Agribusiness Receivables Certificate), carried out in December 2020 by the Company.

6. Trade accounts receivable

12/31/2020

Parent Company

12/31/201912/31/2020 12/31/2019

Domestic market Foreign market Total

11,510 166,575 178,085

11,135 125,979 137,114

7. Inventories

Agricultural products

12/31/2020

Parent Company

12/31/201912/31/2020

Agricultural products - formation costs

Agricultural products - Adjustment at fair value for bi-ological assets

Seeds, composts, fertilizers and pesticides Packages and containerization material Spare parts

Other inventories Advances to suppliers

518,292 402,266

116,026

561,228

10,822

10,960

34,500

43,312

1,179,014

8. Biological assets

Below is the movement of the Company's biological assets:

431,819 333,616

98,203

470,911

9,848

8,364

19,296

1,719

941,957

Parent CompanyConsolidated

13,870 193,413 207,283

11,463 166,942 178,405

Consolidated

12/31/2019

541,467 421,670

119,797

646,305

12,240

12,928

38,407

49,735

476,433 379,394

97,039

549,264

11,492

10,145

22,264

1,756

1,301,082

1,071,354

Consolidated

12/31/2020	12/31/2019	12/31/2020	12/31/2019
Biological assets - culture in formation	723,600	666,930	871,048	779,543
Biological assets - herd of cattle	15,667	1,024	20,756	1,046
Total	739,267	667,954	891,804	780,589

The Group's exposure to credit and currency risk re-lated to trade accounts receivable is disclosed in note 25.

The Company has no provision for losses on inven-tories recorded on December 31, 2020 (R$ 14 on December 31, 2019 in the parent company and in the consolidated).

a) Biological assets culture

The movement in fair value of biological assets during the year is as follows:

Parent Company
Soybean	Cotton	Corn	Other crops2	Total

Consolidated
Soybean	Cotton	Corn	Other crops2	Total

Balances at december 31, 2019	370,603	217,205	42,837	36,285	666,930
Expenditures with planting	493,614	982,903	204,771	131,695	1,812,983
Variation of the fair value1	251,799	306,910	61,248	52,170	672,127
Harvesting and production adjustment - agricultural products	(756,978)	(1,276,873)	(254,600)	(139,989)	(2,428,440)
Balances at December 31, 2020	359,038	230,145	54,256	80,161	723,600
Agricultural products - formation costs	290,795	230,145	54,256	80,161	655,357
Biological assets - adjustment at fair value	68,243	-	-	-	68,243
Balances at december 31, 2019	461,928	237,584	43,959	36,072	779,543
Expenditures with planting	619,067	1,164,052	240,221	161,122	2,184,462
Variation of the fair value1	315,535	326,673	62,353	65,325	769,886
Harvesting and production adjustment - agricultural products	(949,503)	(1,457,011)	(288,196)	(168,133)	(2,862,843)
Balances at December 31, 2020	447,027	271,298	58,337	94,386	871,048
Agricultural products - formation costs	364,608	271,298	58,337	94,386	788,629
Biological assets - adjustment at fair value	82,419	-	-	-	82,419
1. Effect of biological assets in the statement of income for the period.
96

2. Other crops include soybean seed, brachiaria, mung beans, popcorn, seed corn, wheat and permanent livestock.

Below we present the main assumptions used in determining the fair value of biological assets:

Soybean Harvested area (ha) Productivity achieved (sc/ha) Average price (R$/sc)3

Corn

Harvested area (ha) Productivity achieved (sc/ha) Average price (R$/sc)3

Cotton seed Harvested area (ha) Productivity achieved (@/ha) Average price (R$/@)3

Parent Company

20201

164,833 63 R$ 73.79

71,874 125 R$ 31.66

108,132 287 R$ 39.40

1. Crop date 2019/20 on the calculation date.
2. Crop date 2018/19 on the calculation date.
20192
186,239 62 R$ 64.85
75,606 122 R$ 24.08
105,432 282 R$ 35.01
3. Average prices at market value on the date of calculation.

Consolidated

20201

20192

205,508 64 R$ 73.33

86,271 120 R$ 30.91

125,441 285 R$ 39.15

229,960 61 R$ 64.43

88,929 118 R$ 23.62

123,702 273 R$ 34.80

Below we present the main assumptions used in determining the fair value of biological assets referring to the 2020/21 harvest:

Crop 2020/21
Parent Company 12/31/2020	Consolidated 12/31/2020

29,279 60 R$ 107,07

Soybean

Harvested area (ha)

Productivity achieved (sc/ha)

Average price (R$/sc)

33,834 61 R$ 106,67

Soybean, corn and cotton crops occur in the following periods:

Unit

Pamplona Farm Planalto Farm Planorte FarmPaiaguás Farm Perdizes Farm Pioneira Farm Panorama Farm Paladino Farm Piratini Farm Palmares Farm Parceiro Farm Parnaíba Farm

Location

Cristalina (GO)Costa Rica (MS)Sapezal (MT)Diamantino (MT)

Porto dos Gaúchos (MT)Querência (MT)Correntina (BA)São Desidério (BA)Jaborandi (BA)Barreiras (BA)

Formosa do Rio Preto (BA) Tasso Fragoso (MA)

CropsSoybean

September 25

to April 15

September 20

to March 25

September 20

to March 15

September 20 to March 15

September 20

to March 15 October 10 to

March 25 October 20 to

April 30

November 01

to April 30

November 01

to April 30 October 20 to

April 30

November 01 to April 30 October 20 to April 15

Planeste Farm Parnaguá Farm Pantanal Farm Palmeira FarmBalsas (MA)Santa Filomena (PI) Chapadão do Sul (MS) Tasso Fragoso (MA)

October 15 to April 15

November 01

to April 15

September 20

Cotton

November 05

to August 30

December 05

to August 30 January 01 to

August 30

January 01 to August 30

December 20

to August 30

December 20

to August 30

December 01

to August 30

December 01

to August 30

Does not plant

December 01 to August 30

December 01

to August 30

December 10

to August 30

December 20 to August 30

Does not plant

December 05

to March 25 October 10 to

April 15

to August 30

December 10

to August 30

Corn

January 20 to July 15 January 20 to July 10 February 10 to July 10

February 10 to July 15

February 01 to July 10 January 20 to July 15

Does not plantDoes not plantDoes not plantDoes not plantDoes not plant January 25 to July 15

January 25 to July 15

December 01

to July 15 January 10 to

July 10 February 01 to

July 15

The following is an updated table of the planned area for crop year 2019/20 and a comparison with the previous crop year:

Crops

Area

Planted area 2019/20

Planted area 2018/19

ha ha ha ha

Cotton

Soybean (commercial + seed) Corn

Other Crops1

1. Other crops include corn seed, wheat and sorghum.

125,462

123,727

235,444

243,148

82,392

89,470

5,270

1,754

448,568

458,099

For crop year 2020/21, the following area is planned:

Crops

Area

Planned area 2020/212

Cotton

Soybean (commercial + seed) Corn

Other Crops1

ha ha ha ha

109,660

229,497

117,061

11,978

468,196

1. Other crops include corn seed, popcorn, brachiaria, wheat. beans and catle raising permanent.
2. Planned area, subject to changes in crops that are under planting.

b) Biological assets - cattle raising

The Pioneira, Perdizes, Planorte, Paiaguás, Planalto, Pantanal and Planest farms compose the Company's Livestock Integration Project - ILP. This system aims to optimize land use, in places where it is only possible to carry out a crop (soybean), using the herd as a second crop. The ILP project is characterized as fattening activity.

As of the 2020/21 harvest, in addition to the ILP, the Company will also maintain a permanent herd of cattle in specific areas for livestock.

The fair value of cattle raising is calculated using the market value, due to the existence of an active market. The gain or loss in the variation in the fair value of biological assets is recognized in the income statement in the period in which it occurs.

The Company considered the prices practiced in the cattle market in the regions considering the main market, and through the metrics used in the market. In this way the measurement is based on the at sign and age group.

The change in the fair value of the cattle herd during the year is as follows:

Parent Company

Consolidated

1,046 39,054 5,648 (24,992)

Balances at December 31, 2019 Purchase cost

Variation in fair value adjustment1 Low por sale

1,024 21,961 4,349 (11,667)

Balances at december 31, 2020

Biological assets - cattle

Biological assets - adjustment at fair value

15,667 11,318 4,349

1. Effect of biological assets in the statement of income for the period.

20,756 15,108 5,648

9. Recoverable taxes

Controladora

31/12/2020

Income tax

Social contribution ICMS

COFINS PIS

IRRF recoverable Other

49 -

77,895

10,381

2,295

1,787

350

92,757

Portion classified in current assets Portion classified in non-current assets

28,521

64,236

31/12/201931/12/2020

2,570

87,005

9,861

2,120

4,815

946

107,402

33,970

73,432

Consolidado

31/12/2019

708

112,967

26,993

5,635

3,667

668

150,650

39,447

111,203

3,027

128

119,633

28,795

6,080

5,580

1,169

164,412

41,943

122,469

Income and social contribution taxes | It corresponds to the prepayments of In-come and social contribution taxes, which will be offset with taxes of the same nature, in addition to the negative balance of IRPJ and CSLL, which will be offset with federal taxes and contributions.

Recoverable IRRF | Corresponds to withholding income tax on financial invest-ments. Throughout the year they are offset against the IRPJ debt, after closure, these credits are realizable by offsetting with federal taxes and contributions.

ICMS, PIS and COFINS to be offset/recovered | These refer to credits generated in normal operations of the Company and its subsidiaries and may be offset with taxes of the same nature.

The estimated realization of ICMS, PIS and COFINS sales taxes is evaluated by management based on estimated projections of sales of agricultural products, commercialization of ICMS tax credits and on compensation or offsetting of PIS and COFINS with other taxes generated by the Group's operation. The estimated terms of realization of these assets are described below. As of December 31, 2020, a provision was made in the amount of R$ 24,904, related to ICMS tax credits whose loss is estimated due to non-realization. The amount was recorded in Other operating expenses in the income statement for the year.

Consolidated
Deadline
ICMS	PIS	ICMS	COFINS	PIS
Up to 1 year	17,021	7,621	1,693	21,243	10,875	2,262
1 to 2 years	35,802	45	9	46,966	5,017	1,150
2 to 3 years	17,048	-	-	23,882	-	-
Over 3 years	8,024	2,715	593	20,876	11,101	2,223
77,895	10,381	2,295	112,967	26,993	5,635

10. Securities and credits receivable

At December 31, 2020, the consolidated balance of securities receivable is com-prised of an amount of R$ 33,907 (R$ 76,905 at December 31, 2019) as follows:

Consolidated

Balance at December 31, 2019	76,905
Monetary variation	2,018
Withholding income tax	(672)
Receipts	(42,643)
Others1	(1,701)
Balance at December 31, 2020	33,907
Portion classified in current assets	31,207
Portion classified in non-current assets	2,700
1. Amount settled without cash effect.

Sale of land in the subsidiaries Fazenda Paiaguás and Fazenda Parceiro | The subsidiaries Fazenda Paiaguás Empreendimentos Agrícolas Ltda. and Fazenda Parceiro Empreendimentos Agrícolas Ltda. In February 2018, the buyer sold 11,604 hectares of land to third parties in 2017, in the total amount of R$ 176,654, of which R$ 52,996 was received in that year, and the rest was depos-ited by the buyer, in February 2018, in a guaranteed account ("Escrow Account"), being invested in securities backed by an Interbank Deposit Certificate (CDI). The contract provided that some documental formalizations such as transfer of reserves, registration with the real estate registry with the unfolding of their registration and release of mortgages, in addition to the transfer of the funds to the Company itself, should be completed within 12 months of signing the contract, which occurred on December 20, 2017. The contract was postponed, in November 2018, in order to postpone the deadline for some documental formal-izations, such as transfer of reserves, registration in real estate registries with the unfolding of their registration and release of mortgages, in addition to agreeing on the transfer of the funds to the Company itself, in relation to the previous conditions already met, in the amount of R$ 63,789.

In April 2019 the amount of R$ 38,999 was released from the escrow account due to the bookkeeping of the last glebe of Fazenda Paiaguás for the buyer, totaling R$ 102,787 of the original amount, in favor of the Company.

In December 2019 there was a new amendment to the contract, with the re-placement of an area of the Partner Farm with another area in the same unit, as provided for in the initial pact as a possibility. In view of the need to dismem-ber this replaced area, the new deadline for complying with the remaining prec-edent conditions was agreed for June 20, 2020, which may be extended for a period to be adjusted between the parties.

With the advent of the pandemic and the difficulties resulting from the event, the dismemberment of the replaced area was hampered in relation to the term, making it understood by the need to postpone the dismemberment date.

As of December 31, 2020, the balance of receivables related to this transaction is R$ 29,506 (R$ 29,193 as of December 31, 2019).

Sale of land in the subsidiary Fazenda Parnaiba | On November 12, 2019, the subsidiary Fazenda Parnaíba Empreendimentos Agrícolas Ltda. sold 5,205 hec-tares of land to third parties, in the total amount of R$ 83,245. The payment for the acquisition of the land was divided into two installments, the first of which, in the amount of R$ 41,623, corresponding to 50% of the total amount and received on November 28, 2019. The remaining balance, in the amount of R$ 41,622, de-posited in a guaranteed account ("Escrow Account"), remained invested in securi-ties backed by the Interbank Deposit Certificate (CDI) and were released in De-cember 2020 after the completion of the document formalizations. The amount redeemed was R$ 42,643.

Complements the item "securities receivable" balances of other amounts receiva-ble in the amount of R$ 4,401 on December 31, 2020 (R$ 5,961 on December 31, 2019).

11. Investments (Parent company)

Total investments at December 31, 2020 and December 31, 2019 are comprised of the following:

12/31/2020

12/31/2019

Investments parent company

2,212,789 2,212,789

2,200,537 2,200,537

The relevant investments in subsidiaries, valued by the equity method, with a bal-ance on December 31, 2020, are shown in the table below:

100

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SLC Agrícola SA published this content on 22 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2021 21:10:03 UTC.

Delayed Sao Paulo Other stock markets 12:06:05 2024-06-26 EDT			5-day change	1st Jan Change
17.56 ^BRL	-2.51%		-0.62%	-6.70%

05-09	SLC Agrícola S.A. Reports Earnings Results for the First Quarter Ended March 31, 2024	CI
04-23	Cotton certifier used by Inditex, H&M finds no evidence Brazil farms breached standards	RE

SLC Agrícola S.A. Reports Earnings Results for the First Quarter Ended March 31, 2024	05-08	CI
Cotton certifier used by Inditex, H&M finds no evidence Brazil farms breached standards	04-23	RE
Inditex cotton certifier says no evidence of Brazil farms breaching standards	04-23	RE
Transcript : SLC Agrícola S.A., Q4 2023 Earnings Call, Mar 07, 2024	03-07
SLC Agrícola S.A. Reports Earnings Results for the Fourth Quarter Ended December 31, 2023	03-06	CI
SLC Agrícola S.A. Reports Earnings Results for the Full Year Ended December 31, 2023	03-06	CI
Transcript : SLC Agrícola S.A., Q3 2023 Earnings Call, Nov 09, 2023	11-09
SLC Agrícola S.A. Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2023	11-08	CI
SLC Agrícola S.A. announces an Equity Buyback for 4,000,000 shares.	11-07	CI
SLC Agrícola S.A. authorizes a Buyback Plan.	11-07	CI
Tranche Update on SLC Agrícola S.A.'s Equity Buyback Plan announced on May 16, 2023.	23-10-18	CI
SLC Agrícola S.A.'s Equity Buyback announced on May 16, 2023, has closed with 5,000,000 shares, representing 2.23% for BRL 195.41 million,	23-10-18	CI
Transcript : SLC Agrícola S.A., Q2 2023 Earnings Call, Aug 10, 2023	23-08-10
SLC Agrícola S.A. Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2023	23-08-08	CI
Transcript : SLC AgrÃcola S.A., Q1 2023 Earnings Call, May 16, 2023	23-05-16
SLC Agrícola S.A. announces an Equity Buyback for 5,000,000 shares.	23-05-15	CI
SLC Agrícola S.A. authorizes a Buyback Plan.	23-05-14	CI
SLC Agrícola S.A. Reports Earnings Results for the First Quarter Ended March 31, 2023	23-05-14	CI
SLC Agrícola S.A.'s Equity Buyback announced on July 13, 2022, has closed.	23-04-18	CI
Tranche Update on SLC Agrícola S.A.'s Equity Buyback Plan announced on July 13, 2022.	23-04-18	CI
Transcript : SLC Agrícola S.A., Q4 2022 Earnings Call, Mar 09, 2023	23-03-09
SLC Agrícola S.A. Reports Earnings Results for the Fourth Quarter Ended December 31, 2022	23-03-07	CI
SLC Agrícola S.A. Reports Earnings Results for the Full Year Ended December 31, 2022	23-03-07	CI
SLC Agrícola S.A.(BOVESPA:SLCE3) added to Brazil Corporate Sustainability Index	22-12-30	CI
Transcript : SLC Agrfcola S.A., Q3 2022 Earnings Call, Nov 07, 2022	22-11-07

	1st Jan change	Capi.
SLC AGRÍCOLA S.A.	-6.70%	1.41B
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QL RESOURCES	+14.19%	3.35B
GODREJ AGROVET LIMITED	+21.62%	1.55B
CHERKIZOVO GROUP	-.--%	1.28B
SILDARVINNSLAN HF.	-11.06%	1.23B
PT FAP AGRI TBK	0.00%	1.17B
DOLE PLC	-0.73%	1.16B
GENTING PLANTATIONS	+5.28%	1.14B
MARUHA NICHIRO CORPORATION	+15.35%	1.02B

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