Cotton lint yield for 2017/18 crop year revised to 1,810...

Cotton lint yield for 2017/18 crop year revised to 1,810 kg/ha (1.3% above the figure disclosed on 2Q18)

Record EBITDA and Net Income in 9M18 of R$398MM and R$373MM, respectively

Lavoura de soja da safra 2018/19 com excelente aspecto na Pantanal Farn/MS. Picture taken on October, 23 (plantas com 23 “DAE” – Days after emergency)

Soybean pilot 2018/19 crop year with excellent aspect on the Pantanal farm/MS.

Photo taken on October 23 (plants with 23 “DAE” – Days after emergency).

Porto Alegre, November 13, 2018 – SLC AGRÍCOLA S.A. (Bovespa: SLCE3; ADR: SLCJY;

Bloomberg: SLCE3BZ; Reuters: SLCE3.SA), one of world’s largest producers of grains and

fibers, announces today its results for the third quarter of 2018. The following financial

and operating information is presented in accordance with International Financial

Reporting Standards (IFRS). The information was prepared on a consolidated basis and is

presented in thousands of Brazilian Real, except where stated otherwise.

NOTE: 3Q17 and 3Q18 refer to the cumulative three-month periods from July to September of the years 2017 and 2018, respectively. 9M17 and 9M18 refer to the cumulative nine-month periods from January to September of the fiscal years 2017 and 2018, respectively. HA refers to the horizontal percentage variation between two periods and VA refers to the percentage representativeness of the account over a given total.

INVESTOR RELATIONS DEPARTMENT

IVO MARCON BRUM Chief Financial & Investor Relations Officer FREDERICO LOGEMANN

IR & Strategic Planning Manager ALISANDRA REIS

IR Specialist MÔNICA PIVA

IR Assistant

3Q18 CONFERENCE CALL

Date: Nov. 14, 2018 Wednesday

PORTUGUESE 10:00 a.m. (Brasilia)

7:00 a.m. (New York) 12:00 p.m. (London)

Dial-in: +55 (11) 2188-0155 Replay 7 days: +55(11)2188-0400

ENGLISH 12:00 p.m. (Brasilia) 9:00 a.m. (New York)

2:00 p.m. (London) Dial-in: +55 (11) 21880155

Dial-in: :+55 1 646 843 60 54 (NY Connection) Replay 7 days: +55(11)2188-0400

RELEASE 3Q18

RELEASE 3Q18

CONTENT

TABLE OF REFERENCE – TABLES 5

TABLE OF REFERENCE – FIGURES 6

MESSAGE FROM MANAGEMENT 7

MARKET OVERVIEW 10

OPERATING PERFORMANCE 15

FINANCIAL PERFORMANCE 19

INDICATORS 30

LOCATION OF UNITS 32

DISCLAIMER 32

EXHIBIT – BALANCE SHEET – ASSETS 33

EXHIBIT – BALANCE SHEET – LIABILITIES 34

EXHIBIT – STATEMENT OF INCOME FOR THE YEAR 35

EXHIBIT – STATEMENT OF CASH FLOWS 36

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Release 3Q18

TABLE OF REFERENCE – TABLES

Table 1 Financial Highlights ............................................................................. 8

Table 2 Initial and Updated Yield Estimate, 2017/18 Crop Year ........................ 16

Table 3 Planted Area by Crop ......................................................................... 17

Table 4 Planted Area by Land Ownership .................................................... 17

Table 5 Property Portfolio .................................................................................... 17

Table 6 Land Development .............................................................................. 18

Table 7 Machinery and Storage Capacity ..................................................... 19

Table 8 EBITDA Conciliation .......................................................................... 19

Table 9 Net Revenue .........................................................................................20

Table 10 Volume Invoiced ................................................................................20

Table 11 Variation in Fair Value of Biological Assets ................................20

Table 12 Cost of Goods Sold ........................................................................... 21

Table 13 Realization of the Fair Value of Biological Assets ...................... 21

Table 14 Cotton Lint and Cottonseed Gross Margin .................................. 22

Table 15 Soybean Gross Margin ..................................................................... 22

Table 16 Corn Gross Margin ........................................................................... 22

Table 17 Gross Income ..................................................................................... 23

Table 18 Breakdown of Production Cost by Crop (%) ................................ 23

Table 19 Production Cost in R$/hectare ...................................................... 24

Table 20 Selling Expenses ............................................................................... 24

Table 21 Administrative Expenses ................................................................. 25

Table 22 Net Financial Income (Expense) .................................................... 25

Table 23 Gain (Loss) from Derivative Operations ....................................... 25

Table 24 Adjusted Net Financial Income (Expense) ................................... 25

Table 25 Financial Net Debt ............................................................................ 26

Table 26 Net Income ......................................................................................... 28

Table 27 Hedge Position ................................................................................... 29

Table 28 Capital Expenditure ......................................................................... 29

Table 29 Return on Equity ..............................................................................30

Table 30 Return on Net Assets .......................................................................30

Table 31 Return on Invested Capital .............................................................30

Table 32 Net Asset Value – NAV .....................................................................30

Table 33 Changes in Working Capital ........................................................... 31

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Release 3Q18

TABLE OF REFERENCE – FIGURES

Figura 1 Cotton Yield Kg/ha ................................................................................... 7

Figure 2 Soybean Yield kg/ha ................................................................................ 7

Figure 3 Corn Yield kg/ha ...................................................................................... 7

Figure 4 Change in Commodity Prices, in U.S. dollar, from January to

September 2018 ................................................................................................. 10

Figure 5 Cotton Price in International Market vs. Brazil .......................... 10

Figure 6 World Cotton Production and Consumption ................................ 11

Figure 7 Ending Stocks – China ...................................................................... 11

Figure 8 Soybean Price in International Market vs. Brazil ....................... 12

Figure 9. Figure 9 Soybean – Premium on Chicago (Parnaguá) ............... 12

Figure 10 Brazil Soybean Exports to China (January to September) ..... 13

Figure 11 Corn Prices in International Market vs. Brazil ......................... 13

Figure 12 World Corn Production and Consumption ................................ 14

Figure 13 Cotton Lint Yield Comparison ............................................................. 15

Figure 14 Evolution of Breakdown of Planted Area by Property Type .... 18

Figure 15 Changes in Maturity of Land Portfolio (Planted Area) ............. 18

Figure 16 Breakdown of Production Cost, 2018/19 Crop Year ........................... 23

Figure 17 Breakdown of Adjusted Gross Debt (R$ thousand) ................. 26

Figure 18 Changes in Net Debt/EBITDA Ratio ........................................... 27

Figure 19 Gross Debt Amortization Schedule (R$ thousand) .................. 27

Figure 20 Summary of Gross Debt Profile .................................................... 27

Figure 21 Gross Debt by Index and Instrument ......................................... 28

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Release 3Q18

MESSAGE FROM MANAGEMENT

Close of 2017/18 Crop Year During the third quarter of 2018, we concluded harvesting of the cotton and corn crops

for the 2017/18 crop year. With 72% of cotton processing already completed (base date Nov. 1), the average cotton lint yield (1st and 2nd crop) is currently estimated at 1,810

kg/ha, 1.3% above the guidance given in 2Q18, 8.3% above the initial forecast and 6%

above the Brazilian average for the period, according to CONAB. The soybean harvest

had already been concluded in the second quarter. As reported in the previous earnings

release, the soybean yield was 3,739 kg per hectare, a new record for the Company. The

soybean yield surpassed the target in 11.4% and was 10.2% higher than the Brazilian average, based on CONAB figures. The corn yield was lower than the initial forecast,

due to the premature end of precipitation in some regions, which affected the second

corn crop in Brazil as a whole. The final yield, however, which was above the guidance

given in 2Q18, at 5,622 kg/ha, 19.1% higher than the Brazilian average for the crop,

but 18.6% lower than the initial forecast.

The second straight crop year with yields significantly above the trend line is a reflection of the current strategy with higher focus on efficiency gains and on expanding the advantage over the country's average yield.

Figura 1 Cotton Yield Kg/ha

Figure 2 Soybean Yield kg/ha

Figure 3 Corn Yield kg/ha

1,807 1,810

1,708

Crop 2016/17

Crop2017/18

Brazilian Average(1)Crop 2017/18

(1)Source: CONAB

3,282

3,739

3,394

Crop 2016/17

Crop2017/18


(1)Source: CONAB

6,680

5,622

4,721

Crop 2016/17

Crop2017/18


(1)Source: CONAB

Cotton lint (First and second crop average)

6% above national average

Above record yield of 2016/17

Soybean

10.2% above national average

13.9% above 2016/17

Second-crop corn

19.1% above national average

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Release 3Q18

Record Financial Results

The improvement on the operational front supported unprecedented financial results for the nine-month period, with Adjusted EBITDA of R$397.6 million (up 26.6% on the

prior-year period) and Net Income of R$373.0 million (up 60.4% on same basis).

In 3Q18, EBITDA and Net Income decreased in comparison with 3Q17. However, in our

business, quarterly variations must be accompanied by contextualization. The lower

EBITDA basically reflects the displacement of invoiced soybean volumes between the quarters. In 3Q18 we had both anticipation of soybean shipments - that is, a higher percentage of the crop invoiced on the first semester of the year – and also volumes

postponed to the last quarter, the latter stemming from the event of freight tabulation,

which delayed withdrawal of the product by some customers. We expect to invoice

approximately 85,000 tons of cotton, 166,000 tons of soybean and 130,000 tons of corn

in the fourth quarter of 2018.

In the case of Net Income: due to the dynamics of appropriation of Biological Assets, the

distribution of net income between quarters was different between 2017 and 2018, as

it is impacted by the difference between market prices at harvest time (which serve as

the basis for the calculation of Biological Assets) and the prices hedged by the Company. In 2018, a larger portion of the expected profit for the year was recognized in the first

half, leaving less value to be recognized in the third and fourth quarters.

Table 1 Financial Highlights

(R$ Thousand) 9M17 9M18 AH 3Q17 3Q18 AH

Net revenue 1,152,326 1,296,156 12.5% 459,587 408,451 -11.1%

Change in Fair Value of Biological Assets 340,753 656,799 92.7% 101,442 129,134 27.3% Gross income 509,984 730,385 43.2% 155,556 114,498 -26.4%

Gross margin 44.3% 56.4% 12.1 p.p 33.8% 28.0% -5.8 p.p Operating income 399,314 600,779 50.5% 114,095 68,755 -39.7%

Operating margin 34.7% 46.4% 11.7 p.p 24.8% 16.8% -8.0 p.p

Net profit 232,634 373,042 60.4% 70,500 35,587 -49.5%

Net Margin 20.2% 28.8% 8.6 p.p 15.3% 8.7% -6.6 p.p

Adjusted EBITDA(1) 314,087 397,588 26.6% 116,834 88,298 -24.4%

Adjusted EBITDA Margin 27.3% 30.7% 3.4 p.p 25.4% 21.6% -3.8 p.p

Net debt(2) 844,882 1,189,668 40.8% 844,882 1,189,668 40.8% (1) Excluindo os efeitos dos Ativos Biológicos, pois não representam efeito caixa e excluindo a Baixa do Ativo Imobilizado (2) Ajustada pelos ganhos e perdas com derivativos;

Net debt increased during the year, but the Net Debt/EBITDA ratio remained at a very

comfortable level of 1.45 times. The higher debt balance is explained by the sharp

expansion in planted area for the new crop year (mainly due to the incorporation of a new production unit - Pantanal Farm), which increased working capital requirements.

Start of 2018/19 Crop Year

The 2018/19 crop year began in the second half of September with the planting of soybean, which, as of November 9, already was 80% complete. The distribution and

intensity of precipitation was excellent in all regions, which supported the good

implementation of crops.

The revised estimate is to reach a total planted area of 457,000 hectares in this new

crop year, which would be 13% higher than in the 2017/18 crop year. A highlight is the 28% increase in cotton planted area, 38.3% of which is in the second-crop regime, as per our another of our current strategy pillars that is growing in value crops. The total

second-crop planted area expanded 18.7%, seeking to optimize the use of our assets.

Production cost per hectare for the 2018/19 crop increased 19.4% over the 2017/18

crop year, basically due to the significant depreciation in the Brazilian Real against the

U.S. dollar along 2018, with this effect to be offset proportionately by the increase in

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Release 3Q18

Revenues, due to the execution of the Company’s hedging strategy (that has precisely

this purpose). Therefore, there should be no downward pressure on margins.

With regard to yields for this new crop year, compared to the yields projected for the

2017/18 crop year, we estimate a 1.7% increase in cotton (average of 1st and 2nd crops),

a 4.6% increase in soybean and a 2.2% decrease in the corn 2nd crop. The weather in the next crop year is expected to be normal: based on the November 5 report from the

National Oceanic and Atmospheric Administration (NOAA) of the U.S. Department of Commerce there is a 70% to 75% probability of a low-intensity “El Niño, which generally

promotes good agriculture development in Brazil.

Therefore, our expectations for the 2018/19 crop year are highly favorable given the aforementioned factors - planted area, yields, costs and weather - and we project a

continuation of the good level of profitability for this new crop year.

Other Significant Events in the Quarter

“Best in Agribusiness” Award, by the magazine Globo Rural. ranked first among

agricultural production companies.

“Best of Dinheiro 2018” Award, the award is given by the magazine IstoÉ

Dinheiro, which recognizes companies with best practices in financial

management, social responsibility, innovation and quality, human resources

and corporate governance;

Institutional Investor Magazine - Latin America Executive Team (Small

Caps, Agribusiness)

1st place in Best ESG/SRI Metrics

1st place in Best IR Professional (Frederico Logemann)

1st place in Best IR Team

2nd place in Best CEO (Aurelio Pavinato)

2nd place in Best CFO (Ivo Brum)

2nd place in Best Analyst Day

3rd place in Best IR Program

IR Magazine Brazil Awards 2018, for the best Investor Relations Program in

Brazil, in the Small Caps category.

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Release 3Q18

MARKET OVERVIEW

Figure 4 Change in Commodity Prices, in U.S. dollar, from January to September 2018

COTTON

The average cotton spot price on the ICE US during 3Q18 was de 84.4 USc per pound,

slightly below the average price in the prior quarter, but presenting a downward trend

towards the close of the quarter. As such, prices at the end of September returned to

the same levels observed at the start of the year.

Figure 5 Cotton Price in International Market vs. Brazil

Supply and demand in the short term, however, remains favorable for cotton, with

consumption following a solid upward path in recent years to set new records, with

70

80

90

100

110

120

130

140Cotton - ICE: 100 Soybean - CBOT:89 Corn - CBOT:105 Commercial Dollar: 110

Source: Bloomberg

(01/01/2018 = 100)

1Q18 2Q18 3Q18

200

220

240

260

280

300

320

340

360

380

400

50

55

60

65

70

75

80

85

90

95

100

01/01/17 01/04/17 01/07/17 01/10/17 01/01/18 01/04/18 01/07/18

R$ c

/lb

U$ c

/lb

ICE US$ c/lb Esalq R$ c/lb

Source: Bloomberg

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

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Release 3Q18

production growing more slowly, which points to yet another year of drawdowns in

global stocks. The recent decline in prices is explained by the uncertainties arising from

the trade war between the United States and China.

Figure 6 World Cotton Production and Consumption

In the United States, the world’s largest cotton exporter, USDA data indicate that

production will be 4.3 million tons, approximately 6% lower than the last crop year,

basically due to the severe drought in Texas (the country’s main cotton producing state).

Combined with the drought in Texas, hurricanes Florence and Michael not only caused additional losses in the volume produced (estimated at up to 220,000 tons and not yet considered in USDA figures), but also affected the quality of the fiber produced. Since

Brazilian cotton is of high quality, on par with that of U.S. and Australia, a production

shortfall in the United States provides space for Brazil to gain share in global trade. In

the current scenario of major uncertainties due to the current trade dispute, we already

have observed a reduction in China’s appetite for importing agricultural products from

the United States, which could also benefit Brazil, given the potential redistribution of agricultural products in global trade. According to CONAB, Brazil’s cotton lint

production should surpass 2 million tons in 2018, which would represent growth of over

30% on the prior crop year. Brazil’s cotton exports are projected to reach some 900,000

tons in the 2017/18 crop year (10% of global trade).

Figure 7 Ending Stocks – China

26,0

20.923.2

26.9 26.524.3 24.7 25.3

26.8 27.8

0

5

10

15

20

25

30

2014/15 2015/16 2016/17 2017/18 2018/19

Mil

lion

of Ton

s

Production Consumption

Source: USDA

14.6

12.3

10.0

8.3

6.5

0

2

4

6

8

10

12

14

16

2014/15 2015/16 2016/17 2017/18 2018/19

Million

of Ton

s

Source USDA

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Release 3Q18

SOYBEAN

The average spot soybean price on the CBOT was 14% lower than the average price in

the prior quarter and 12% lower than the price at the start of the year, basically due to

the confirmation by China of the 25% duty on soybean imports from the United States,

which is one of the developments of the trade war cited earlier. This comes along with the good conditions for the U.S. crop in 2018/19, whose harvest was more than 70%

concluded as of October 28, according to the USDA.

Figure 8 Soybean Price in International Market vs. Brazil

Despite the lower prices in Chicago, the prices paid in Brazilian real to Brazilian producers

remain at higher levels than a year ago, given the BRL/USD depreciation during the year, as well as the premiums in U.S. dollar practiced currently in the Brazilian market (basis), as shown in Figure 9.

Figure 9 Soybean – Premium on Chicago (Parnaguá)

50

55

60

65

70

75

80

85

90

95

100

8,0

8,5

9,0

9,5

10,0

10,5

11,0

11,5

12,0

01/01/17 01/04/17 01/07/17 01/10/17 01/01/18 01/04/18 01/07/18

R$/sc

US

$ /

bu

sh

el

CBOT US$/bu Esalq R$/sc

Source: Bloomberg

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

40

90

140

190

240

290

340

Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18

Cen

ts/lb

ush

el

Spot

Source: Bloomberg

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Release 3Q18

The trade dispute between China and United States explains this price difference in the

local market, and is also helping Brazil to increase its share as a supplier to China, as

confirmed by the record exports from Brazil to China during 2018. According to data

from SECEX, Brazilian soybean exports to China in 2018 in the first nine months of

2018 were 55 million tons, approximately 15% higher than in the same period last year.

Figure 10 Brazil Soybean Exports to China (January to September)

Source: http://comexstat.mdic.gov.br/pt/geral

According to the USDA forecast for the 2018/19 crop year, China’s soybean imports should remain similar to that observed in the prior crop year (94 million tons), offering

conditions for demand for Brazilian soybean to remain stable.

CORN

The average corn price of the first contracts traded on the Chicago Board of Trade

(CBOT) in 3Q18 was slightly lower than the average price in the previous quarter and,

by the end of September, was basically at the same level observed at the start of 2018.

In Brazil’s domestic market, however, prices in Brazilian real remained at high levels, reflecting the BRL/USD depreciation over the year and the crop shortfall, which also led

to a premium in the domestic price in relation to the price in Chicago, even in U.S. dollar.

Figure 11 Corn Prices in International Market vs. Brazil

47,744

55,066

20.000

25.000

30.000

35.000

40.000

45.000

50.000

55.000

60.000

2017 2018

Th

d T

on

s

20

25

30

35

40

45

50

3,0

3,5

4,0

4,5

01/01/17 01/04/17 01/07/17 01/10/17 01/01/18 01/04/18 01/07/18

R$/S

c

US

$/B

ush

el

CBOT - US$/bu Esalq - R$/sc

Source: ESALQ-USP, CBOT/CMA

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

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Release 3Q18

In the global market, a second year of deficits (demand exceeding production) should

support prices in the short/medium term. Despite the strong level of production in the

United States in the 2018/19 crop year (whose harvest was 68% concluded on October

28, according to the USDA), shortfalls in Brazil and Argentina reduced the volume of

supply during the year.

Figure 12 World Corn Production and Consumption

In Brazil, corn production stood at 80.8 million tons in the 2017/18 crop year, according

to data from CONAB, 17% lower than in the same period last year, basically due to the

shortfall in second-crop corn.

This scenario could continue to support domestic prices if the export program were

successful.

1,023,180

972,891

1,078,309

1,034,226

1,068,305

970,444988,914

1,036,011

1,065,317

1,099,030

900.000

950.000

1.000.000

1.050.000

1.100.000

1.150.000

2014/15 2015/16 2016/17 2017/18 2018/19

Th

d T

on

s

Production Consumption

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Release 3Q18

OPERATING PERFORMANCE

2017/18 CROP YEAR

In 3Q18, the cotton harvest was completed on 95,124 ha (first and second crop), with

the harvest of second-crop corn also completed in the period. With 72% of cotton processing already completed (base date Nov. 1), the average cotton lint yield (1st and

2nd crops) is currently estimated at 1,810 kg/ha, 1.3% above the guidance given in 2Q18,

8.3% above the initial forecast and 6% above the Brazilian average for the period,

according to CONAB.

Figure 13 Cotton Lint Yield Comparison

The harvest of second-crop corn ended with a yield of 5,622 kg/ha, 18.6% below the

initial forecast, but 19% above the Brazilian average for this crop, according to CONAB.

The shortfall in second-crop corn in Brazil was due to the premature suspension of

precipitation at the end of the crop year.

SOYBEAN

As reported in 2Q18, the soybean yield was 3,739 kg per hectare, which is a new record

for the company. Yield exceeded the target set by 11.4% and was 10.2% higher than the Brazilian average, based on CONAB figures.

COTTON 1ST CROP

After completing the harvest of 57,832 ha of first-crop cotton, the yield estimate was

revised to 1,893 kg/ha of cotton lint, up 16.6% from the previous year and a new record

for the company. The final yield will depend on the conclusion of processing. To date, the yield is 11.3% above target.

1,807

1,671

1,787

1,810

1,708

1600

1650

1700

1750

1800

1850

Final Yield

Crop

2016/17

Initial Yield

Crop 2017/18

Yield Update

Crop 2017/18

2Q18

Yield Update

Crop 2017/18

3Q18

Yield -

Brazilian

Average

CONAB

Kg/h

a

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Release 3Q18

COTTON 2ND CROP

The harvest of 37,292 ha was concluded, with the current cotton lint estimate at 1,682

kg/ha, which represents a yield increase of 9.3% on the 2016/17 crop year. In relation

to the initial forecast, the increase was 3.3%. The final yield is pending the conclusion

of processing.

CORN 2ND CROP

The harvest of 76,931 ha was concluded on September 13 with a yield of 5,622 kg per

ha, 4.3% above the guidance given in 2Q18 and 18.7% below the initial forecast, but

19% above the Brazilian average for the crop, according to CONAB.

The lower yield was due to the premature end of precipitation at the end of the crop year,

especially in the state of Maranhão and in eastern Mato Grosso state (see more details

in the 2Q18 release).

YIELD

Table 2 Initial and Updated Yield Estimate, 2017/18 Crop Year

Yield (kg/ha)

Crop 2017/18 Crop 2018/19

(a) Initial Estimate

(b) Current Estimate

∆ (b x a)

(c) Initial Estimate

∆ (c x a)

Cotton Lint 1st crop 1,699 1,893 11.4% 1,749 2.9% Cotton Lint 2nd crop 1,628 1,682 3.3% 1,622 -0.4%

Cotton Seed 2,142 2,348 9.6% 2,176 1.6% Soybean 3,360 3,739 11.3% 3,515 4.6%

Corn 2nd crop 6,912 5,622 -18.7% 6,760 -2.2%

2018/19 CROP YEAR

The 2018/19 crop year began in September with the planting of super-early and early

soybean varieties on the farms located in the states of Mato Grosso, Mato Grosso do Sul

and Maranhão, as well as on irrigated areas in the states of Bahia and Goiás.

SOYBEAN

The planting of super-early and early soybean varieties, which enables the planting of

second-crop cotton and corn, began in the last ten days of September. The area planted

by November 9 was 193,081,97 ha in the states of Mato Grosso, Mato Grosso do Sul,

Goiás, Bahia and Maranhão, which represents 80.0% of the estimated soybean area. We managed to plant 100% of the super-early and early soybean varieties, and to date

the crops are presenting excellent development.

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Release 3Q18

PLANTED AREA

The following table presents the latest data on planted area for the 2018/19 crop year

and a comparison with the previous crop year.

Table 3 Planted Area by Crop

Crop Mix

Planted Area Planted Area Share

Δ% 2017/18 2018/19(1) 2018/19 ------------------ ha ------------------ %

Cotton 95,124 121,777 26.6 28.0 Cotton 1st crop 57,832 73,089 16.0 26.4

Cotton 2nd crop 37,292 48,688 10.7 30.6 Soybean (Commercial + Seeds) 230,164 243,323 53.2 5.7

Corn 2nd crop 76,931 88,850 19.4 15.5 Others crops(2) 2,228 3,084 0.7 38.4

Total Area 404,446 457,034 100.0 13.0 (1) Weather factors may affect the planted area forecast. (2) Wheat, corn 1st crop, corn seed and sorgum.

Table 4 Planted Area by Land Ownership

Area Mix

Planted Area Planted Area Share

2018/19 Δ% 2017/18 2018/19(1) ------------------ ha ------------------ %

1st Crop Area 288,607 316,560 69.3 9.7 Owned Land 108,516 110,557 24.2 1.9

Leased Area 106,540 131,843 28.8 23.7 Joint Ventures Area(2) 38,879 39,487 8.6 1.6

LandCo Area(3) 34,672 34,672 7.6 0.0 2nd Crop Safra 115,839 140,474 30.7 21.3

Owned Land 60,659 62,410 13.7 2.9 Leased Area 36,235 54,942 12.0 51.6

Joint Ventures Area(2) 7,035 8,516 1.9 21.1 LandCo Area(3) 11,911 14,606 3.2 22.6

Total Area 404,446 457,034 100.0 13.0 (1) Weather factors may affect the planted area forecast. (2) Areas owned by Grupo Roncador and Mitsui. (3) A SLC Agrícola holds an interest of 81.23% in SLC LandCo.

LAND PORTFOLIO

The portfolio of properties under our management on November 13 is presented below:

Table 5 Property Portfolio

Crop 2017/18 Area (ha) Owned(1) SLC LandCo(2) Leased Joint

Ventures Under

Control Total

Planted(3)

Farms State -------------------------------------------------------------ha ----------------------------------------------------------- Pamplona GO 17,911 3,857 21,768 21,399

Pantanal MS 25,803 25,803 41,343 Planalto(7) MS 15,006(7) 1,635 16,641 22,273

Planorte MT 23,454 23,454 31,481 Paiaguás MT 28,124 15,806 43,930 66,805

Perdizes(5) MT 28,846 13,276 42,122 27,421 Pioneira(4) MT 19,435 19,435 27,950

Panorama BA 10,373 14,253 24,626 21,735 Paladino(5) BA 20,053 20,053 20,053

Piratini BA 25,356 25,356 7,506 Palmares BA 16,195 831 15,943 32,969 23,864 Parnaíba(8) MA 31,398(8) 11,270 42,668 45,461

Palmeira MA 10,200 15,859 26,059 21,302 Planeste MA 22,785 16,622 39,407 54,704

Parceiro BA 27,556 3,680 10,795 42,031 14,340

Paineira (6) PI 12,892 12,892 -

Parnaguá PI 23,736 23,736 9,398

Total - 225,118 86,501 131,843 39,488 482,950 457,034 (1) Own property, includes Legal Reserve. (2) SLC Agrícola currently owns 81.23% of SLC LandCo, while the Valiance fund owns 18.77%. (3) Including

the second crop. Weather factors may affect the planted area forecast. (4) The Pioneira Farm is part of the joint arrangement with Grupo Roncador. (5) The Perdizes and Paladino Farms are part of the joint arrangements with Mitsui in SLC-Mit. (6) Farm leased to third parties. (7) Donation of 2,431

hectares to the Taquari River Headwaters State Park in Mato Grosso do Sul. (8) Termination of the acquisition contract.

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CURRENT POSITION OF OUR LANDBANK

AREAS UNDER DEVELOPMENT PROCESS The current position of our landbank is presented below:

Table 6 Land Development

SLC Agricola Farms Areas in transformation Areas in licensing process

(ha) (ha) Palmares - 601

Parnaíba - 1,464 Parnaguá - 3,426

Parceiro - 6,698

Sub Total - 12,189

SLC LandCo Farms Areas in transformation Areas in licensing process

(ha) (ha) Parnaíba (1) - 4,749

Piratini 9,993 - Parceiro (1) 2,645 -

Sub Total 12,638 4,749

Total 12,638 16,938 (1) Areas acquired by SLC LandCo to be developed jointly with these farms. Note: The estimate of areas in the licensing process could change due to georeferencing.

The following chart shows our planted area broken down by type of property:

Figure 14 Evolution of Breakdown of Planted Area by Property Type

CHANGES IN MATURITY OF LAND PORTFOLIO

Figure 15 Changes in Maturity of Land Portfolio (Planted Area)

57% 53% 49%

43% 47% 51%

Crop2016/17

Crop 2017/18

Crop 2018/19

Planting in Own Area Planting in Leased Area

12% 5%1% 1%

88% 95% 99% 99%

2015/16 2016/17 2017/18 2018/19

Immature Areas Mature Areas

Immature Areas = less than 3 years of harvesting

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MACHINERY AND STORAGE CAPACITY

The following table presents the machinery owned by the Company and its current storage capacity:

Table 7 Machinery and Storage Capacity

Machinery Quantitye

Tractors 198

Grain Combines 181 Cotton Pickers 74

Planters 197 Self-propelled sprayers 144

Storage Capacity Grains Cotton

Tons 613,700 115,981

% Production(1) 44% 53% (1)Estimativa com base na área plantada e produtividades estimadas para o ano-safra 2018/19.

FINANCIAL PERFORMANCE

EBITDA

Table 8 EBITDA Conciliation

(R$ thousand) 9M17 9M18 AH 3Q17 3Q18 AH

Net revenue 1,152,326 1,296,156 12.5% 459,587 408,451 -11.1%

Change in Fair Value of Biological Assets 340,753 656,799 92.7% 101,442 129,134 27.3% (-) Cost of Goods and/or Services Sold (983,095) (1,222,570) 24.4% (405,473) (423,087) 4.3%

Cost of Goods (795,152) (837,939) 5.4% (328,971) (301,093) -8.5%

Realization of the Fair Value of Biological Assets (187,943) (384,631) 104.7% (76,502) (121,994) 59.5% Gross Income 509,984 730,385 43.2% 155,556 114,498 -26.4%

(-) Sales Expenses (48,892) (63,446) 29.8% (19,674) (22,122) 12.4% (-) General and administrative expenses (51,229) (59,991) 17.1% (18,732) (22,562) 20.4%

General and administrative (32,565) (37,431) 14.9% (10,828) (12,733) 17.6% Participations Results (18,664) (22,560) 20.9% (7,904) (9,829) 24.4%

Administrative Fees (10,648) (11,495) 8.0% (3,381) (2,349) -30.5%

(-) Other operating revenues (loss) 99 5,326 n.m. 326 1,290 295.7% Other revenue 99 5,326 n.m. 326 1,290 295.7%

(=) Income from Activity 399,314 600,779 50.5% 114,095 68,755 -39.7% (+) Depreciation and amortization 65,103 63,971 -1.7% 27,384 23,093 -15.7%

EBITDA 464,417 664,750 43.1% 141,479 91,848 -35.1%

(-) Change in Fair Value of Biological Assets (note 7) (340,753) (656,799) 92.7% (101,442) (129,134) 27.3% (+) Realization of the Fair Value of Biol. Assets (note 23) 187,943 384,631 104.7% 76,502 121,994 59.5%

(+) Write-off of fixed assets 2,480 5,006 101.9% 295 3,590 n.m.

Adjusted EBITDA 314,087 397,588 26.6% 116,834 88,298 -24.4%

Adjusted EBITDA Margin 27.3% 30.7% 3.4 p.p 25.4% 21.6% -3.8 p.p (1) Excludes the effects from Biological Assets, since they are noncash. (2) Excluding write-off of Property, Plant and Equipment. *NE: Note in the Quarterly Information (ITR) In 3Q18, Adjusted EBITDA was R$88,298 thousand, 24.4% lower than in 3Q17. The

variation is explained by the lower corn yield in the comparison of the 2016/17 and

2017/18 crop years, which affected the margin of invoiced products between quarters (via an increase in unit cost), and by the lower volume of soybean invoiced in the period

(since invoiced volume was concentrated in the first half of the year), with a slight

reduction in margin.

In the nine-month period, however, Adjusted EBITDA was a record R$397,588 thousand,

with margin of 30.7%, which represent growth of 26.6% and margin expansion of 3.4 p.p.

compared to 9M17. The growth in Adjusted EBITDA in both periods is basically due to

the result of cotton. Most of the cotton invoiced in the first nine months of 2018 is from the 2016/17 crop year, which reported a much higher yield than that of the 2015/16

crop year (which originated most of the cotton invoiced during 9M17). We also had an

increase in volume invoiced and sale prices. Soybean also benefitted EBITDA in the

nine-month period, through an increase in volume invoiced and a decline in unit cost,

given the lower yield in the comparison of the 2016/17 and 2017/18 crop years.

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NET REVENUE

Net Revenue in 3Q18 contracted 11.1% on the year-ago period. The reduction is mainly

due to the soybean volumes invoiced, given the concentration of volume invoiced in the

first half of the year, as well as the postponement of invoicing to the fourth quarter.

In 9M18, Net Revenue grew 12.5%, led by the cotton and soybean crops. Net revenue

from cotton increased 55.9% in 9M17, reflecting the 33.7% higher volume invoiced,

which is explained by the record yield in the 2016/17 crop year, combined with the

9.3% increase in unit price. The soybean volume invoiced increased 9.4% from 9M17,

due to the higher yield in the current year, as mentioned above.

Table 9 Net Revenue (R$ Thousand) 9M17 9M18 AH 3Q17 3Q18 AH

Net Revenue 1,152,326 1,296,156 12.5% 459,587 408,451 -11.1%

Cotton lint invoiced 308,595 481,144 55.9% 122,756 188,677 53.7% Cotton seed invoiced 61,345 45,842 -25.3% 54,590 31,482 -42.3%

Soybean invoiced 619,452 710,172 14.6% 173,587 126,247 -27.3%

Corn invoiced 90,143 95,756 6.2% 74,971 86,205 15.0%

Others (invoiced) 19,630 20,151 2.7% 17,611 13,342 -24.2% Hedge income 53,161 (56,909) n.m. 16,072 (37,502) n.m.

Table 10 Volume Invoiced

(Tons) 9M17 9M18 AH 3Q17 3Q18 AH Volume Invoiced 1,175,140 1,257,382 7.0% 624,967 559,863 -10.4%

Cotton lint 58,238 77,865 33.7% 24,533 27,188 10.8% Cotton seed 98,029 122,490 25.0% 88,140 89,580 1.6%

Soybean 639,399 699,331 9.4% 175,928 118,693 -32.5% Corn 303,876 290,317 -4.5% 268,302 264,475 -1.4%

Other 75,598 67,379 -10.9% 68,064 59,927 -12.0%

Table 11 Variation in Fair Value of Biological Assets

(R$ Thousand) 9M17 9M18 AH 3Q17 3Q18 AH Change in Fair Value of Biological Assets 340,753 656,799 92.7% 101,442 129,134 27.3%

Cotton lint 216,535 346,989 60.2% 94,229 132,675 40.8% Cotton seed 32,296 23,563 -27.0% 13,963 8,161 -41.6% Soybean 105,193 278,734 165.0% - - -

Corn (16,213) 216 n.m. (6,750) (11,556) 71.2% Other 2,942 7,297 148.0% - (146) -100.0%

The variation in the fair value of biological assets is calculated by multiplying the estimated yield (in the month prior to the harvest) by the market price at the farm, net of taxes, less

costs incurred.

The recognized apportionment of the variation in the fair value of Biological Assets in 2Q18

increased 27.3% compared to 3Q17, amounting to R$129,134 thousand. In 9M18, this

increase was 92.7%, to R$656.8 million.

This significant increase is mainly explained by the expectations of higher margins for the cotton and soybean crops, mainly due to the higher yield compared to the previous crop

year, and by the expansion of cotton area in the current crop year.

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COST OF GOODS SOLD

Cost of goods sold decreased 8.5% in 3Q18, due to the lower soybean volume invoiced,

which was partially offset by the higher unit costs of cotton, corn and soybean.

Except for corn, whose higher unit cost is due to the lower yield in relation to the

previous crop year, the increases in the unit costs of cotton and soybean this quarter do not reflect the expectations of the crop year as a whole (which is for a reduction in

unit costs compared to the prior period), and were due to the mix of farms that shipped

the product in 3Q18 versus 3Q17.

In 9M18, cost increased 5.4% basically due to the higher cotton and soybean volume

invoiced and to the higher unit cost of corn. This effect was partially offset by the

reductions of 12% and 5.8% in the unit costs of cotton and soybean invoiced in the period, respectively.

Table 12 Cost of Goods Sold (R$ thd) 9M17 9M18 AH 3Q17 3Q18 AH Cost of Goods Sold (795,152) (837,939) 5.4% (328,971) (301,093) -8.5%

Cotton Lint (205,265) (241,479) 17.6% (68,987) (87,882) 27.4%

Cotton Seed (44,352) (31,317) -29.4% (37,971) (19,537) -48.5%

Soybean (444,915) (458,237) 3.0% (141,234) (102,291) -27.6%

Corn (80,748) (92,143) 14.1% (70,876) (85,004) 19.9%

Others (19,872) (14,763) -25.7% (9,903) (6,379) -35.6%

Table 13 Realization of the Fair Value of Biological Assets

(R$ thd) 9M17 9M18 AH 3Q17 3Q18 AH Realiz. of the fair Value of Biol. Assets (187,943) (384,631) 104.7% (76,502) (121,994) 59.5%

Cotton Lint (55,853) (125,724) 125.1% (44,398) (61,559) 38.7% Cotton Seed (13,564) (14,493) 6.8% (13,557) (8,999) -33.6% Soybean (132,570) (238,157) 79.6% (33,412) (49,183) 47.2% Corn 16,649 (253) n.m. 15,425 183 -98.8%

Others (2,605) (6,004) 130.5% (560) (2,436) 335.0%

ANALYSIS OF MARGINS 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 Cottonseed

Of the cotton invoiced in 3Q18, 94% is associated with the 2017/18 crop year. In 1H18

and 9M18, gross margin increased compared to the same period last year. Margin increased 9.0% in 3Q18, due to the 12.1% increase in unit price, which was partially

offset by the increase in unit cost of 14.9%.

As mentioned before, this increase in cotton unit cost in the quarter does not reflect the

expectations for the crop year as a whole, which was explained by the impact on the

mix of farms that invoiced the product this quarter compared to the mix in 3Q17.

In 9M18, the higher margin is due to the better prices and yield, with a reduction in

unit cost. In 9M18, most of the cotton invoiced originates from the 2016/17 crop year,

whose yield was significantly higher than in the 2015/16 crop year.

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Table 14 Cotton Lint and Cottonseed Gross Margin Cotton Invoiced 9M17 9M18 AH 3Q17 3Q18 AH

Cotton Lint Invoiced

Volume Invoiced Ton 58,238 77,865 33.7% 24,533 27,188 10.8% Net Revenue R$ thd 308,595 481,144 55.9% 122,756 188,677 53.7%

Result of currency hedge R$ thd (11,132) (46,375) 316.6% 10,884 (22,702) n.m. Net inc. adj. for the res. of currency hedging R$ thd 297,463 434,769 46.2% 133,640 165,975 24.2%

Unit Price R$ / Ton 5,108 5,584 9.3% 5,447 6,105 12.1% Cost Total R$ thd (205,265) (241,479) 17.6% (68,987) (87,882) 27.4%

Unit Cost R$ / Ton (3,525) (3,101) -12.0% (2,812) (3,232) 14.9% Unitary Margin R$ / Ton 1,583 2,483 56.9% 2,635 2,873 9.1%

Cotton Seed Invoiced Volume Invoiced Ton 98,029 122,490 25.0% 88,140 89,580 1.6%

Net Revenue R$ thd 61,345 45,842 -25.3% 54,590 31,482 -42.3% Unit Price R$ / Ton 626 374 -40.3% 619 351 -43.3%

Cost Total R$ thousand (44,352) (31,317) -29.4% (37,971) (19,537) -48.5% Unit Cost R$ / Ton (452) (256) -43.4% (431) (218) -49.4%

Unitary Margin R$ / Ton 174 118 -32.2% 188 133 -29.3%

SOYBEAN

Soybean unit margin in 3Q18 decreased 32.5% from 3Q17. This margin reduction was due to the increase in unit cost, due to the change in the mix of farms that invoiced the

product between the periods (in 3Q18, the farms that invoiced soybean had weaker

performances compared to those that invoiced the product in 3Q17). However, note that

the expectation for 9M18 is for an increase in soybean margins, given the higher

productivity and stable sales prices, which offset the increase in cost per hectare.

In 9M18, margin decreased 3.3%, since the reduction in the invoiced price was only

partially offset by the decrease in unit cost (the latter resulting from the better yield). Note, however, that in the whole of the crop year, soybean invoice prices should remain

stable in relation to 2017, which, combined with the better yields, should support

expansion in soybean margin.

Table 15 Soybean Gross Margin Soybeans Invoiced 9M17 9M18 AH 3Q17 3Q18 AH

Volume Invoiced Ton 639,399 699,331 9.4% 175,928 118,693 -32.5%

Net Revenue R$ thd 619,452 710,172 14.6% 173,587 126,247 -27.3% Result of currency hedge R$ thd 60,340 (3,994) n.m. 1,778 (8,369) n.m. Net inc. adj. for the res. of currency hedging R$ thd 679,792 706,178 3.9% 175,365 117,878 -32.8%

Unit Price R$ / Ton 1,063 1,010 -5.0% 997 993 -0.4%

Cost Total R$ thd (444,915) (458,237) 3.0% (141,234) (102,291) -27.6% Unit Cost R$ / Ton (696) (655) -5.9% (803) (862) 7.3%

Unitary Margin R$ / Ton 367 355 -3.3% 194 131 -32.5%

CORN

The corn invoiced in 3Q18 was produced in the 2017/18 crop year. Corn unit margin

was negative in the quarter and in 9M18. This variation is due to the lower yield in the

2017/18 crop year compared to the 2016/17 crop year, with a consequent increase in unit cost.

Table 16 Corn Gross Margin

Corn Invoiced 9M17 9M18 AH 3Q17 3Q18 AH

Volume Invoiced Ton 303,876 290,317 -4.5% 268,302 264,475 -1.4% Net Revenue R$ thd 90,143 95,756 6.2% 74,971 86,205 15.0%

Result of currency hedge R$ thd 3,953 (6,540) n.m. 3,410 (6,431) n.m. Net in. adj. for the res. of currency hedging R$ thd 94,096 89,216 -5.2% 78,381 79,774 1.8%

Unit Price R$ / Ton 310 307 -1.0% 292 302 3.4% Cost Total R$ thd (80,748) (92,143) 14.1% (70,876) (85,004) 19.9%

Unit Cost R$ / Ton (266) (317) 19.2% (264) (320) 21.2% Unitary Margin R$ / Ton 44 (10) n.m. 28 (18) n.m.

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GROSS INCOME

Table 17 Gross Income

(R$ Thousand) 9M17 9M18 AH 3Q17 3Q18 AH Gross Profit 509,984 730,385 43.2% 155,556 114,498 -26.4%

Cotton lint 92,198 193,290 109.6% 64,653 78,093 20.8% Cotton seed 16,993 14,525 -14.5% 16,619 11,945 -28.1%

Soybean 234,877 247,941 5.6% 34,131 15,587 -54.3% Corn 13,348 (2,927) n.m. 7,505 (5,230) n.m.

Others (242) 5,388 n.m. 7,708 6,963 -9.7% Biological Assets 152,810 272,168 78.1% 24,940 7,140 -71.4%

Gross Income in 3Q18 amounted to R$114,498 thousand, with margin of 28%, a

decrease of 5.8 percentage points from 33.8% in 3Q17. Excluding effects from Biological

Assets, Gross Income decreased 17.8%, essentially due to the lower soybean volume

invoiced and the decrease in corn margin.

In 9M18, Gross Income increased 43.2% from 9M17, with margin of 56.4%, up 12.1

percentage points in relation to the same period last year. Excluding the apportionment

of Biological Assets, Gross Income advanced 28.3%. The main crop that contributed to

the increase in Gross Income was cotton, with higher volume and price combined with

a lower unit cost.

PRODUCTION COST

The following chart presents a breakdown of our average production cost in the 2018/19

crop year:

Figure 16 Breakdown of Production Cost, 2018/19 Crop Year

Table 18 Breakdown of Production Cost by Crop (%)

% Cotton Soybean Corn

Average

2018/19

Average

2017/18 Variable Costs 82.5 74.5 78.8 79.3 76.7

Seeds 9.4 14.2 20.1 12.2 12.4 Fertilizers 21.8 18.9 31.7 21.8 19.0

Chemicals 27.4 22.4 11.6 24.0 21.7 Pulverização Aérea 1.9 1.2 1.5 1.6 1.8

Fuels and Lubricants 4.2 5.0 5.0 4.6 4.5 Labor 1.1 0.7 0.6 1.0 1.0

Ginning 8.4 2.3 2.7 5.7 6.8 Maintence of machinery and quipments 3.6 5.1 3.9 4.1 5.0

Others 4.8 4.6 1.7 4.4 4.3 Fixed Costs 17.5 25.5 21.2 20.7 23.3

Labor 7.8 10.3 8.6 8.8 9.7

Depreciation and amortization 3.2 5.7 3.8 4.1 5.6 Leasing 4.7 7.1 6.8 5.7 5.2

Others 1,9 2,4 2,1 2,1 2,7

24%

22%

12%

10%

10%

8%

4%

6%4%

Defensivos

Fertilizantes

Sementes

Mão de Obra

BeneficiamentoMan. máquinas e implementos

Outros

Depreciações e Amortizações

Arrendamentos

Combustíveis e Lubrificantes

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Our estimates of total production cost per hectare for the 2018/19 crop year are

presented below:

Table 19 Production Cost in R$/hectare

A B C(1)

Total (R$/ha)(2) Budget 2017/18 Achieved 2017/18 Budget 2018/19 C/B C/A Cotton 1st crop 6,811 7,140 8,187 14.7% 20.2%

Cotton 2nd crop 6,023 6,002 7,475 24.5% 24.1% Soybean 2,311 2,355 2,697 14.5% 16.7%

Corn 2nd crop 1,814 1,754 2,119 20.8% 16.8% Custo médio total (1) 3,368 3,433 4,020 17.1% 19.4%

(1) According to the position on September 30, 2018 (budget amounts). Figures may suffer changes by the end of cotton processing

and the sale of grains. (2) Total average cost weighted by area.

The costs per hectare estimated for the 2018/19 crop year registered an average

increase in Brazilian real of 19.4% compared to the 2017/18 crop year, basically due to

the depreciation in the Brazilian real against the U.S. dollar in the period, since

approximately 55% of costs are denominated in dollar. This increase will be offset by a

proportionate increase in revenues, due to the Company’s hedge policy. Accordingly, we

expect a continuation of the good margins levels for the next crop year.

SELLING EXPENSES

Selling expenses increased 12.4% and 29.8% in 1Q18 and 9M18, respectively, compared to the same period last year. The main factors contributing to this variation were the

higher volume of cotton invoiced and the higher export expenses. Selling expenses

corresponded to 4.9% and 5.4% of net revenue in 9M18 and 3Q18, respectively.

Table 20 Selling Expenses

(R$ Thousand) 9M17 9M18 AH 3Q17 3Q18 AH

Freight 19,624 23,517 19.8% 9,769 9,466 -3.1%

Storage 17,070 20,291 18.9% 5,746 5,983 4.1%

Commissions 3,929 7,266 84.9% 879 2,234 154.2%

Classification of Goods 651 956 46.9% 551 613 11.3%

Export Expenses 7,101 10,818 52.3% 2,541 3,468 36.5%

Others 517 598 15.7% 188 358 90.4%

Total 48,892 63,446 29.8% 19,674 22,122 12.4%

% Net Revenue 4.2% 4.9% 0.7 p.p 4.3% 5.4% 1.1 p.p

GENERAL AND ADMINISTRATIVE EXPENSES

In 3Q18, General and Administrative Expenses increased 17.6% from 3Q17. In 9M18,

they increased by 14.9%.

These changes are shown before expenses with Profit Sharing, since it varies in

accordance with the Company’s net income expectation.

Explanations for the main variations follow:

a. Personnel expenses: increase due to the wage increase under

collective bargaining and to the adjustment in headcount;

b. Fees: expenses with topography and legal advisory services;

c. Software maintenance: expenses with updating and purchasing

licenses.

General and administrative expenses corresponded to 3.1% and 2.9% of Net Revenue in

3Q18 and 9M18, respectively, stable in relation to the previous year.

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Table 21 Administrative Expenses (R$ Thousand) 9M17 9M18 AH 3Q17 3Q18 AH

Expenses with personnel 17,261 19,725 14.3% 5,894 6,710 13.8%

Fees 2,899 3,517 21.3% 1,058 1,105 4.4% Depreciations and amortizations 847 1,034 22.1% 289 375 29.8%

Expenses with travels 1,023 1,615 57.9% 399 788 97.5% Software maintenance 2,760 3,378 22.4% 844 1,145 35.7%

Marketing/Advertisement 1,170 1,477 26.2% 89 101 13.5% Expenses with Communications 1,741 1,760 1.1% 643 510 -20.7%

Rentals 621 609 -1.9% 213 211 -0.9% Labor, Tax and Environmental Contingencies 341 (45) n.m. (76) (124) 63.2%

Electricity 99 127 28.3% 29 38 31.0% Taxes and other fees 406 613 51.0% 68 180 164.7% Contribuitions and donations 814 692 -15.0% 486 335 -31.1%

Other 2,583 2,929 13.4% 892 1,359 52.4%

Subtotal 32,565 37,431 14.9% 10,828 12,733 17.6% % Net Revenue 2.8% 2.9% 0.1 p.p 2.4% 3.1% 0.8 p.p

Provision for profit share program 18,664 22,560 20.9% 7,904 9,829 24.4%

Total 51,229 59,991 17.1% 18,732 22,562 20.4%

NET FINANCIAL INCOME (EXPENSE)

Table 22 Net Financial Income (Expense) (R$ Thousand) 9M17 9M18 AH 3Q17 3Q18 AH

Revenues (expenses) with derivatives (21.619) 40.138 n.m. (12.632) 10.581 n.m. Interest (54.396) (53.304) -2.0% (16.804) (18.911) 12.5%

Monetary variation (1.398) - -100.0% 1.202 - -100.0% FX variation 23.445 (38.808) n.m. 14.340 (15.875) n.m.

Other financial revenues (expenses) (6.521) (3.207) -50.8% (2.169) (763) -64.8%

Total (60.489) (55.181) -8.8% (16.063) (24.967) 55.4%

% Net Revenue -5.2% -4.3% 0.9 p.p -3.5% -6.1% -2.6 p.p

Table 23 Gain (Loss) from Derivative Operations (R$ mil) 9M17 9M18 AH 3T17 3T18 AH

Swap de Dívida em Dólar para Real (21.619) 40.137 n.m. (12.632) 10.581 n.m.

Total (21.619) 40.137 n.m. (12.632) 10.581 n.m.

Note: In accordance with Note 20 of the Quarterly Information (ITR)

Note that, since most of debt in USD was swapped to BRL and the remainder is

designated as hedge accounting, so that the effects of exchange variation are recorded

as Sales Revenue and only after payment of the principal – the exchange variation on

dollar-denominated debt does not affect Net Financial Income (Expense) when we

analyze the aggregate figures, since any gains and losses on such debt not allocated to hedge accounting are offset by gains/losses in an equal proportion to the respective

swap.

For a better understanding of this impact, we suggest analyzing below Table 24 -

Adjusted Net Financial Income (Expense).

Table 24 Adjusted Net Financial Income (Expense)

(R$ thd) 9M17 9M18 AH 3Q17 3Q18 AH Interest (65,776) (53,718) -18.3% (20,757) (20,451) -1.5%

FX Variation net of swap operation 13,206 1,743 -86.8% 5,661 (3,754) n.m. Monetary Variation (1,398) - -100.0% 1,202 - -100.0%

Others financial revenues (expenses) (6,521) (3,207) -50.8% (2,169) (763) -64.8%

Total (60,489) (55,181) -8.8% (16,063) (24,968) 55.4%

% Net Revenue 5.2% 4.3% 0.9p.p. 3.5% 6.1% -2.6p.p

In 3Q18, the net financial result was a negative R$24,968 thousand, against R$ 16,063

thousand also negative in 3Q17. The main factor that contributed to this variations was the FX oscillation, impacting Accounts Receivable and Accounts Payable.

In the accumulated period of 9 months, the main variation is interest payment, and the

reduction is due to the renegotiation of financing rates.

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Release 3Q18

DEBT

Adjusted gross debt stood at R$1,634,507 thousand at September 30, 2018,

representing a slight increase of 1% on gross debt in 2Q18. The following chart shows the changes in adjusted gross debt in nine months:

Figure 17 Breakdown of Adjusted Gross Debt (R$ thousand)

Adjusted net debt in 3Q18 increased to R$1,189,668 thousand, from R$1,093,858

thousand in 2Q18, as shown in the following table:

Table 25 Financial Net Debt

Average Interest Rate (%) Consolidated

(R$ thd) Index 2Q18 3Q18 2Q18 3Q18

Applied in Fixed Assets

Finame – BNDES Pré, TJLP¹ and Currency Basket

5.50% 5.45% 101,993 95,828

101,993 95,828

Applied in Working Capital

Rural Credit Pré 6.98% 6.81% 186,489 191,969

CRA CDI 6.55% 6.55% 201,112 204,381 Working Capital Pré 7.20% 7.20% 184,840 188,013 External Loans Pré 6.50% 6.50% 201,820 204,996

External Loans CDI 7.55% 7.56% 442,810 446,027 External Loans US$, Libor³+Pré 6.79% 6.89% 48,820 51,664

Working Capital CDI 7.20% 7.20% 296,484 311,468

1,562,375 1,598,518

Total Indebtedness 6.99% 6.98% 1,664,368 1,694,346

(+/-) Gains and losses with derivates connected with applications and and debts 47.109 59.840

(=) Adjusted Debt 1,617,259 1,634,507

(-) Cash 523,401 444,839

(=) Adjusted Debt 1,093,858 1,189,668

EBITDA of las 12 months 850,622 822,085

Adjusted Net Debt/Adjusted EBITDA 1.29x 1.45x

Adjusted Net Debt/NAV 27.3% 29.6% (1) Long-Term Interest Rate (TJLP). (2) London Interbank Offer Rate (Libor): Interest rate charged by London banks used as a reference for most loans in the international financial system. (3) Transactions with gains and losses from Derivatives (note 20 of the Quarterly Information). (4) Final Interest Rate with swap; (5) Financial settlement amount.

Net debt increased 8.8% to R$1,189,668 thousand, while the Adjusted Net

Debt/Adjusted EBITDA ratio increased from 1.29 times in 2Q18 to 1.45 times in 3Q18.

The higher working capital needs spurred by the expansion in planted area and the

inclusion of a new production unit (Pantanal Farm) explain the debt increase.

1,578,117

500,893 (466,222)

(58,341) 76,060 52,782 (48,782) 1,634,507

Adjusted Gross Debt

Dec/2017

New Loans Amortization of

Principal

Interest

Amortization

Interest

Appropriation

FX Variation SWAP Variation

(MTM)

Adjusted Gross Debt

Sep/2018

Gross Debt Negative Variation Positive Variation

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Release 3Q18

The following chart presents the changes in the Net Debt/EBITDA ratio:

Figure 18 Changes in Net Debt/EBITDA Ratio

The following chart shows the total debt amortization schedule:

Figure 19 Gross Debt Amortization Schedule (R$ thousand)

Figure 20 Summary of Gross Debt Profile

474

739 766

851 822 845 829 875

1.094

1.190

1.78

1.12 1.14 1.291.45

-0,5x

0,5x

1,5x

2,5x

3,5x

4,5x

5,5x

-

200

400

600

800

1.000

1.200

1.400

Sep-17 Dec-17 Mar-18 Jun-18 Sep-18

R$

MM

Adjusted EBITDA Adjusted Net Debt Adjusted Net Debt X Adjusted Ebitda

444,893

464,925

724,399

358,147

43,858 11,31731,861

Cash Flow 2018 2019 2020 2021 2022 After 2022

55,04%

44,96%

96,84%

3,16%

Short Term Long Term R$ US$

(1) Weighted average rate of debt in R$ (2) Weighted average rate of debt in USD

6.98(1)

6.89(2)

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Release 3Q18

Figure 21 Gross Debt by Index and Instrument

NET INCOME

Table 26 Net Income (R$ thousand) 9M17 9M18 AH 3Q17 3Q18 AH

Income before taxes on profit 338,825 545,598 61.0% 98,032 43,788 -55.3%

Income Tax and Social Contribution on Profit (106,191) (172,556) 62.5% (27,532) (8,201) -70.2%

Consolidated Net Income for the Period 232,634 373,042 64.0% 70,500 35,587 -49.5%

Assigned to parent company 220,094 347,162 57.7% 68,791 35,793 -48.0% Assigned to non-controlling company

members 12,540 25,880 106.4% 1,709 (206) n.m.

% Net Revenue (1) 20.2% 28.8% 8.6 p.p 15.3% 8.7% -6.6 p.p

In 3Q18, Net Income ended the period at R$35,587 thousand, down 49.5% from 3Q17.

The variation is mainly due to the decline in Gross Income, reflecting the lower soybean

volume invoiced (given the higher concentration of exports in the first half in comparison with prior-year period) and the lower corn margin caused by the lower yield.

In 9M18, we reported again record net income of R$373,042 thousand, up R$140,408

thousand in relation to 9M17. Net margin expanded 8.6 percentage points, ending the

period at 28.8%. This is mainly due to the cotton crop, with the higher volumes invoiced, better price and lower unit costs, combined with the higher soybean volume invoiced.

CURRENCY AND AGRICULTURAL COMMODITY HEDGE

The Company’s sales revenues are generated mainly by the trading of agricultural

commodities such as cotton, soybean and corn, which are quoted in U.S. dollar on international exchanges, such as the Chicago Board of Trade (CBOT) and the

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) and option contracts.

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 variation are accomplished through advanced sales directly with our clients

(forward contracts).

We also use futures and options contracts negotiated 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 (expense).

The hedge position on October 30, 2018 for commodities (in relation to the estimated

total volume invoiced) and currency (in relation to the total estimated revenue in U.S. dollar) is shown below, broken down by commercial hedge and financial hedge:

56.8%

39.8%

3.05%

PRE CDI OTHERS LIBOR

60%

12%

11%

11%

6%

Extermal Loans CRA Rural Credit BNDES

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Release 3Q18

Table 27 Hedge Position Fiscal Year 2018 2019

FX Rate(1) Hedge (%) R$ / US$ Hedge (%) R$ / US$

FX Hedge 95.5 3.4530 56.7 3.5794 Commitments(1) 2.2 1.9418 2.0 1.9418

Total 97.6 3.4194 58.7 3.5240 Cotton Hedge (%) US¢ / pound(2) Hedge (%) US¢ / pound(2)

Commercial Hedge 100.0 79.48 59.9 81.10 Financial Hedge (4) - - 8.7 85.10 Cotton – Total Hedge 100 79.48 68.6 81.6

Soybean Hedge (%) US$ / bushel(2) Hedge (%) US$ / bushel(2) Commercial Hedge 99.0 10.76 32.3 10.86

Financial Hedge(4) - - - - Commitments(3) - - 12.3 -

Soybean – Total Hedge 99.0 10.76 44.6 10.86 Corn Hedge (%) R$/Bag(5) Hedge (%) R$/Bag(5)

Commercial Hedge 88.5 19.63 12.0 21.61 Corn – Total Hedge 88.5 19.63 12.0 21.61

(1) Commitments with debt payments in U.S. dollar. (2) Based on FOB Port (prices at our production units are also influenced by transport expenses and possible quality discounts). (3) Natural hedge with payments related to land acquisitions and leasing agreements in soybean bags. (5) Farm price.

PROPERTY, PLANT AND EQUIPMENT / INTANGIBLE ASSETS

The main investments in 3Q18 were:

(i) Acquisition of agricultural machinery and tools, mainly at the Paiaguás

farm; (ii) Soil correction mainly at the Perdizes, Paiaguás and Pioneira Farms;

(iii) Buildings and facilities, mainly at the Paiaguás, Planorte and Perdizes

farms.

Table 28 Capital Expenditure

CAPEX (R$ thousand) 9M17 AV 9M18 AV 3Q18 AV

Machinery, implements and equipment 36,053 32.0% 58,712 37.4% 36,745 38.7%

Land acquisition 4,374 3.9% 575 0.4% - 0.0% Soil correction 20,750 18.4% 26,251 16.7% 17,072 18.0%

Buildings and facilities 23,707 21.0% 27,221 17.3% 15,200 16.0% Cotton ginning plant 786 0.7% 12,158 7.7% 12,158 12.8% Grains storage 11,655 10.3% 5,080 3.2% 4,116 4.3%

Soil cleaning 4,284 3.8% 2,796 1.8% 1,667 1.8% Vehicles 2,480 2.2% 5,118 3.3% 2,820 3.0%

Aircraft - 0.0% 8,823 5.6% 229 0.2% Software 5,977 5.3% 5,173 3.3% 2,245 2.4%

Property improvements - 0.0% 180 0.1% 110 0.1% Others 2,600 2.3% 4,931 3.1% 2,545 2.7%

Total 112,664 157,017 94,908

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Release 3Q18

INDICATORS

The Company believes that the calculation of Return on Equity, Return on Net Assets

and Return on Invested Capital should consider, in addition to operating income in the

period, the net annual appreciation (based on the report of an independent auditor

prepared every year) in the value of its land.

Table 29 Return on Equity (R$ million) 2010 2011 2012 2013 2014 2015 2016 2017 Net Revenue 59 160 38 97 70 121 16 289(4)

Net Land Appreciation SLC Agricola(1) -36 179 222 313 396 108 130 (24) Net Land Appreciation LandCo (1)(2) - - 48 61 32 32 69 44

Subtotal 23 339 308 471 498 261 215 309 Shareholder ’s Equity(3) 1,839 2,063 2,407 2,924 3,608 3,748 4,219 4,275 Return 1.3% 16.4% 12.8% 16.1% 13.8% 7.0% 5.1% 7.2%

(1) Based on the independent appraisal report (Deloitte), updated as of June 2017, net of taxes. (2) Adjusted by the interest of 81.23% held by SLC Agrícola in SLC LandCo. (3) Adjusted by the appreciation in the value of land properties. (4) Net Income from Agricultural Operations.

Table 30 Return on Net Assets (R$ million) 2010 2011 2012 2013 2014 2015 2016 2017

Net Profit 59 160 38 97 70 121 16 289(3) Net Land Appretiation(1) (36) 179 271 373 428 140 199 19

Subtotal 23 339 309 470 498 261 215 308

Invested Capital 2,598 3,196 3,635 4,113 4,696 5,017 4,857 4,997

Working Capital 395 504 626 641 733 739 561 613 Fixed Assets(2) 2,203 2,692 3,009 3,472 3,963 4,278 4,296 4,384

Return 0.9% 10.6% 8.5% 11.4% 10.6% 5.2% 4.4% 6.2% (1) Based on the independent appraisal report (Deloitte), updated as of June 2017, net of taxes. (2) Adjusted by land-price appreciation. (3) Net Income from Agricultural Operations.

Table 31 Return on Invested Capital

(R$ million) 2010 2011 2012 2013 2014 2015 2016 2017

Operating Income 126 257 145 150 190 285 110 504(4) Adjusted IR (38) (87) (72) (35) (40) (78) 20 (133)

Adjusted Operating Income 88 170 73 115 150 207 130 371 Apreciação de Terras Líquida(1) (36) 179 270 374 428 140 199 19 Operating Results w/ Land 52 349 343 489 578 347 329 390

Invested Capital 2,110 2,527 2,987 3,753 4,329 4,788 5,010 5,021

Gross Debt (CP e LP)(2) 450 640 811 1,170 1,332 1,711 1,807 1,471 Cash(2) 110 131 157 376 355 671 1,016 725

Net Debt (2) 339 509 654 794 977 1,040 791 746 Shareholder’s Equity (3) 1,771 2,018 2,333 2,781 3,352 3,748 4,219 4,275

Return 2.5% 13.8% 11.5% 13.0% 13.3% 7.2% 6.6% 7.8% (1) Based on the independent appraisal report (Deloitte), updated as of June 2017, net of taxes. (2) Adjusted by the interest held in the subsidiaries. (3 )Adjusted by land-price appreciation. (4) Operating Result from Agricultural Operations.

Table 32 Net Asset Value – NAV (R$ million) 9M18 SLC Agrícola Farms (1) 2,520

SLC LandCo Farms(2) 682 Infrastructure (excl. land) (3) 886

Accounts Receivable (excl. derivates) (3) 86 Inventories (3) 1.243

Biological Assets(3) 150 Cash (3) 455

Subtotal 6,023 Suppliers(3) 274

Adjusted Gross Debt (3)(4) 1,523

Outstanding debt related to land acquisitions (3) 14

Subtotal 1,812 Net Asset Value 4,211

Net Asset per Share 44.2 (1) Based on the independent appraisal report (Deloitte), updated as of June 2017, net of taxes. (2) Based on the independent appraisal report (Deloitte), updated June/2017, net of taxes, adjusted by the interest held by SLC Agrícola in the subsidiary. (3) Adjusted by the interest held by

SLC Agrícola in the subsidiaries. (4) Gross Debt adjusted by operations with derivative instruments and the interest held by SLC Agrícola in the

subsidiaries.

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Release 3Q18

Table 33 Changes in Working Capital Working Capital Variation 2017 9M18 ASSETS Accounts Receivable 168,128 93,796 Inventories 569,524 1,352,832 (-) Biological Assets + Inventories Adjustment ( non cash) (76,735) (370,456) Recoverable Taxes 45,908 51,483 Biological Assets 522,997 168,262 (-) Biological Assets (non cash) (21,094) - Expenses incurred in advance 8,354 6,664 Subtotal 1,226,099 1,306,177 LIABILITIES Suppliers 424,041 305,140 Taxes, rate and sundry contributions 28,414 12,230 Social charges and labor legislation obligations 62,701 55,865 Provisions for tax, environmental and labor risks 2,446 2,402 Others 232,528 197,215 Advances from clients 98,652 123,173 Dividends payable 83,598 10,822 Leases Payable 37,486 44,859 Others accounts payable 3,792 18,361 Subtotal 964,658 770,867 TOTAL 261,441 536,110 Change in WC - 274,669

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Release 3Q18

LOCATION OF UNITS

DISCLAIMER

This release makes 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 currently available to the Company. Forward-looking statements include information on our current plans, beliefs or expectations, as well as those of the Company’s directors 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 results and creation of value for shareholders may differ significantly from the figures expressed or suggested in the forward-looking statements. Many factors that will determine these results and values are beyond our capacity to control or predict.

SLC Agrícola FARMS 1. Paiaguás – 66,805 ha ¹ 2. Planorte – 31,481 ha 3. Pamplona - 21,339 ha ¹ 4. Planalto - 22,273 ha ¹ 5. Parnaíba - 45,461 ha ¹ ²

6. Palmeira – 21,302 ha1

7. Parnaguá – 9,398 ha 8. Paineira – leased farm 9. Parceiro – 14,340 ha ² 10.Palmares – 21,302 ha ¹ 11.Pantanal – 41,343 ha

Joint Venture with Mitsui Co. 13. Perdizes – 27,421 ha ¹ 14. Paladino – 20,053 ha

SLC LandCo Farms (SLC Agrícola 82%, Valiance 18%) 15. Planeste – 54,704 ha ¹ ²

16. Panorama – 21,735 ha ² 17. Piratini – 7,506 ha ²

Joint Venture with Roncador Group 12. Pioneira – 27,950 ha ¹

12

3

4

57

89

101213

1416

17

6

11

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Release 3Q18

EXHIBIT – BALANCE SHEET – ASSETS

(R$ thd) 2017 AV 9M18 AV AH

Current assets 2,250,339 42.5% 2,304,300 42.1% 2.4%

Cash and cash equivalents 611,539 11.6% 393,734 7.2% -35.6% Short-term interest earning bank deposits 137,789 2.6% 51,105 0.9% -62.9%

Accounts receivable 168,128 3.2% 93,796 1.7% -44.2% Advances to suppliers 9,017 0.2% 3,596 0.1% -60.1%

Inventories 569,524 10.8% 1,352,832 24.7% 137.5% Biological assets 522,997 9.9% 168,262 3.1% -67.8%

Recoverable taxes 45,908 0.9% 51,483 0.9% 12.1% Securities and credits receivable 123,657 2.3% 128,524 2.3% 3.9%

Operations with derivatives 47,140 0.9% 46,392 0.8% -1.6% Intercompany transactions - - 7 0.0% 100.0%

Other accouns receivable 3,916 0.1% 5,579 0.1% 42.5% Prepaid expenses 8,354 0.2% 6,664 0.1% -20.2%

Assets held for sale 2,370 0.0% 2,326 0.0% -1.9% Non-current assets 3,043,346 57.5% 3,175,083 57.9% 4.3%

Recoverable taxes 62,841 1.2% 88,209 1.6% 40.4%

Deferred inceome and social contribution taxes 18,760 0.4% 18,506 0.3% -1.4% Operations with derivatives 23,766 0.4% 36,291 0.7% 52.7%

Advances to suppliers 57,763 1.1% 46,176 0.8% -20.1% Prepaid expenses 2,567 0.0% 2,687 0.0% 4.7%

Other credits 17,029 0.3% 14,364 0.3% -15.6% 182,726 3.5% 206,233 3.8% 12.9%

Investment Property 202,243 3.8% 202,069 3.7% -0.1% Property, plant and equipment 2,647,977 50.0% 2,751,859 50.2% 3.9%

Intangible 10,400 0.2% 14,922 0.3% 43.5%

2,860,620 2,968,850 Total Assests 5,293,685 100.0% 5,479,383 100.0% 3.5%

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Release 3Q18

EXHIBIT – BALANCE SHEET – LIABILITIES

(R$ thd) 2017 AV 9M18 AV AH

Current liabilities 1,662,232 31.4% 1,802,804 32.9% 8.5%

Suppliers 424,041 8.0% 305,140 5.6% -28.0% Loans and financing 860,976 16.3% 925,306 16.9% 7.5%

Taxes, rates and sundry contributions 28,414 0.5% 12,230 0.2% -57.0% Social charges and labor legislation obligations 62,701 1.2% 55,865 1.0% -10.9%

Advances from clients 98,652 1.9% 123,173 2.2% 24.9% Debts with related parties - - 885 0.0% 100.0%

Operations with derivatives 42,583 0.8% 219,648 4.0% 415.8% Securities payable 17,543 0.3% 14,466 0.3% -17.5%

Provisions for tax, environmental and labor risks 2,446 0.0% 2,402 0.0% -1.8% Dividends payable 83,598 1.6% 10,822 0.2% -87.1%

Leases payable 37,486 0.7% 44,859 0.8% 19.7% Others accounts payables 3,792 0.1% 18,361 0.3% 384.2% Non-current liabilities 929,626 17.6% 1,020,999 17.4% 2.3% Loans and financing 728,198 13.8% 765,437 14.0% 5.1%

Deferred taxes 186,975 3.5% 185,860 3.4% -0.6% Operations with derivatives 14,372 0.3% 69,647 1.3% 384.6%

Other debits 81 0.0% 55 0.0% -32.1% Shareholders' equity 2,701,827 51.0% 2,725,227 49.7% 0.9%

Capital 947,522 17.9% 947,522 17.3% 0.0%

Capital reserves 110,566 2.1% 106,640 1.9% -3.6% (-) Treasury shares (60,596) -1.1% (42,276) -0.8% -30.2%

Profit reserves 404,975 7.7% 201,702 3.7% -50.2% Retained Losses - - 349,363 6.4% 100.0%

Other comprehensive income 1,110,732 21.0% 967,761 17.7% -12.9% Non-controlling shareholders in subsidiaries 188,628 3.6% 194,515 3.5% 3.1% Total Liabilities 5,293,685 100.0% 5,479,383 100.0% 3.5%

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Release 3Q18

EXHIBIT – STATEMENT OF INCOME FOR THE YEAR

(R$ thd) 3Q17 3Q18 AH 9M17 9M18 AH

Net Revenue 459,587 408,451 -11.1% 1,152,326 1,296,156 12.5%

Cotton lint 122,756 188,677 53.7% 308,595 481,144 55.9%

Cotton seed 54,590 31,482 -42.3% 61,345 45,842 -25.3%

Soybean 173,587 126,247 -27.3% 619,452 710,172 14.6%

Corn 74,971 86,205 15.0% 90,143 95,756 6.2%

Others 17,611 13,342 -24.2% 19,630 20,151 2.7%

Hedge revenue 16,072 (37,502) n.m. 53,161 (56,909) n.m.

Variation of Biological assets 101,442 129,134 27.3% 340,753 656,799 92.7%

Cost of goods sold (328,971) (301,093) -8.5% (795,152) (837,939) 5.4%

Cotton lint (68,987) (87,882) 27.4% (205,265) (241,479) 17.6%

Cotton seed (37,971) (19,537) -48.5% (44,352) (31,317) -29.4%

Soybean (141,234) (102,291) -27.6% (444,915) (458,237) 3.0%

Corn (70,876) (85,004) 19.9% (80,748) (92,143) 14.1%

Others (9,903) (6,379) -35.6% (19,872) (14,763) -25.7%

Biological assets (76,502) (121,994) 59.5% (187,943) (384,631) 104.7%

Gross Income 155,556 114,498 -26.4% 509,984 730,385 43.2%

Operating expenses/income (41,461) (45,743) 10.3% (110,670) (129,606) 17.1%

Sales expenses (19,674) (22,122) 12.4% (48,892) (63,446) 29.8%

General and administrative expenses (18,732) (22,562) 20.4% (51,229) (59,991) 17.1%

General and administrative expenses (10,828) (12,733) 17.6% (32,565) (37,431) 14.9%

Provision for profit share program (7,904) (9,829) 24.4% (18,664) (22,560) 20.9%

Management compensation (3,381) (2,349) -30.5% (10,648) (11,495) 8.0%

Other operating income (expenses) 326 1,290 295.7% 99 5,326 n.m.

Inc. (loss) bef. Finan. Inc. (loss) and taxes 114,095 68,755 -39.7% 399,314 600,779 50.5%

Financial income 34,635 84,135 142.9% 156,390 177,964 13.8%

Financial expenses (50,698) (109,102) 115.2% (216,879) (233,145) 7.5%

Income (loss) before income tax 98,032 43,788 -55.3% 338,825 545,598 61.0%

Income and social contrib. taxes (27,532) (8,201) -70.2% (106,191) (172,556) 62.5%

Current (10,248) 1,773 n.m. (16,492) (37,770) 129.0%

Deffered (17,284) (9,974) -42.3% (89,699) (134,786) 50.3%

Net Income (loss) for the period 70500 35,587 -49.5% 232,634 373,042 60.4%

Assig. to Memb. of the Parent Company 68,791 35,793 -48.0% 220,094 347,162 57.7%

Attrib. to Non-Controlling Partners 1,709 (206) n.m. 12,540 25,880 106.4%

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Release 3Q18

EXHIBIT – STATEMENT OF CASH FLOWS

(R$ thd) 3Q17 3Q18 AH 9M17 9M18 AH

Net cash from operational activities 299,549 36,768 -87.7% 107,593 203,470 89.1%

Cash generated in operations 132,378 114,260 -13.7% 417,462 510,209 22.2%

Net inc. (loss) bef, income and social contrib, taxes 98,032 43.788 -55,3% 338,825 545.598 61,0%

Depreciation and amortization 27,384 23.093 -15,7% 65,103 63.971 -1,7%

Income from write-off of permanent assets 340 5.034 n.m. 2,630 10.789 310,2%

Investment capital gains (losses) 22,744 37.777 66,1% 140,463 135.258 -3,7%

Int., foreign exc. var. and price-level restatement 991 1.039 4,8% 3,199 3.280 2,5%

Share-based compensation (24,940) (7.141) -71,4% (152,810) (272.168) 78,1%

Variation in biological assets - - - (496) - -100.0%

Prov. (rever.) of invent. Adjust. and onerous contracts 7,827 9.705 24,0% 19,005 22.516 18,5%

Prov. (reversal) of profit sharing and labor conting. - - - - - -

Other ajusts - 965 100.0% 1,543 965 -37,5%

Changes in assets and liabilities 167,171 (77,492) n.m. (309,869) (306,739) -1.0%

Trade accounts receivable (39,822) (53.200) 33,6% (37,267) 74.332 n.m.

Inventories and biological assets 48,692 165.101) -439,1% 21,024 (151.289) n.m.

Recoverable taxes (2,423) (21.973) 806,9% (15,391) (30.939) 101,0%

Accounts receivable - 1 100.0% 565 (80) n.m.

Interest earnings bank deposits-pledged 71,609 385 -99,5% 46,666 86.684 85,8%

Other accounts receivable 10,498 14.596 39,0% (4,837) 2.614 n.m.

Advances to suppliers 10,950 22.162 102,4% 11,592 17.009 46,7%

Suppliers 53,312 180.494 238,6% (239,816) (132.132) -44,9%

Taxes and social payables 1,656 (13.698) n.m. (13,045) (43.785) 235,6%

Debts with related parties

Operations with derivatives 9,250 (26.214) n.m. (34,559) (73.957) 114,0%

Securit. Payabe (3,846) - -100.0% (8,122) (4.409) -45,7%

Advances from clients 72,625 (29.005) n.m. 111,485 24.522 -78,0%

Lease (13,735) 2.826 n.m. (15,739) 7.373 n.m.

Other accounts payable 751 30.310 n.m. 26,571 20.923 -21,3%

Income tax and social contribution paid (3,464) (12.130) 250,2% (6,746) (46.142) 584,0%

Dividends received - - - - - -

Interest paid (48,882) (7.562) -84,5% (152,250) (58.341) -61,7% Net cash used in investment activities (58,797) (112,263) 90.9% (98,317) (175,413) 78.4%

In Investment - - - - - -

In biological assets - - - - - -

In Fixed assets (57,551) (110.235) 91,5% (93,860) (170.330) 81,5%

In investment property - - - - - -

In Intangible assets (1,246) (2.028) 62,8% (4,457) (5.083) 14,0%

Net cash before cash used in investment activities 240,752 (75,495) n.m. 9,276 28,057 202.5% Net cash generated/(consumed) in financ. activities (17,493) (2,681) -84.7% (400,921) (245,861) -38.7%

Sale (repurchase) of shares (21,549) 360 n.m. (20,639) (75.753) 267,0%

Loans and financing obtained 382,107 37.289 -90,2% 717,460 496.106 -30,9%

Loans and financing paid (378,051) (40.330) -89,3% (1,083,520) (466.222) -57,0%

Dividends paid - - - (14,222) (199.992) n.m.

Increase (decrease) in cash and cash equivalents 223,259 (78,176) n.m. (391,645) (217,804) -44.4%

Opening balance of cash and cash equivalents 273,836 471,911 72.3% 888,740 611,539 -31.2%

Closing balance of cash and cash equivalents 497,095 393,735 -20.8% 497,095 393,735 -20.8%

For a better understanding of our effective cash generation, we recommend the following

adjustment:

Adjustment of the calculation of Net Cash before Financing Activities, excluding

variations in the line Financial Investments, given our understanding that variations in

this line do not impact effective cash generation. (R$ thousand) 3Q17 3Q18 AH 9M17 9M18 AH

Reported Free Cash Flow 240,752 (75,495) - 9,276 28,057 202.5% Variation on interest earning bank deposits 71,609 385 99.5% 46,666 86,684 85.8%

Adjusted Free Cash 169,143 (75,880) n.m. (37,390) (58,627) 56.8%

of 37

Release 3Q18

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Cotton lint yield for 2017/18 crop year revised to 1,810...

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