AGRO3

BrasilAgro – Companhia Brasileira de Propriedades Agrícolas is a Brazilian corporation founded on September 23, 2005, focused on investment and operations in agribusiness. Since its initial public offering in April 2006, when it began trading on B3 under the ticker AGRO3, the company has structured a business model that combines large-scale agricultural and livestock production with active management of a portfolio of farmland. Throughout its history, it has acquired and developed properties in different regions of Brazil and in neighboring countries, going through successive cycles of transformation, productive use, and sale of these rural assets.

BrasilAgro’s business model is based on two main economic drivers: the real estate appreciation of its farms and the operating results from agricultural and livestock production. The company focuses on acquiring rural properties with development potential, implementing infrastructure, technology, and intensive farming systems, and later selling these areas in whole or in part, capturing capital gains. At the same time, it directly operates in the production of grains, sugarcane, cotton, and cattle, and also leases out part of its land. AGRO3 shares on B3 represent an interest in a business that combines characteristics of rural real estate development with recurring farming activity, with strong exposure to the agricultural commodity cycle and the farmland market.

As of June 30, 2025, BrasilAgro’s portfolio totaled 252,796 hectares of total area, of which 188,727 hectares correspond to usable area for production, spread across properties located in Mato Grosso, Minas Gerais, Maranhão, Bahia, Piauí, and São Paulo, as well as assets in Paraguay and Bolivia. Since the start of operations, the company has acquired 18 properties in seven Brazilian states and in the two neighboring countries, totaling more than 320 thousand hectares, and over time has sold several farms in whole or in part, recycling capital and adjusting the portfolio mix. The strategy also includes lease agreements, both as a lessee – to expand the cultivated base with less need for fixed investment – and as a lessor, monetizing areas at different stages of agricultural development.

From an operational standpoint, BrasilAgro operates in multiple production segments. In grains, it focuses especially on soybeans, corn, and beans, with planting mainly between September and December and harvesting through May, using crop rotation and second-crop practices to increase land productivity. In sugarcane, it grows thousands of hectares on different properties in Brazil and Bolivia, with an annual cutting cycle and an average useful life of the sugarcane fields of around seven years, supplying raw material to partner sugar and ethanol mills. In cotton, it allocates significant areas in the Midwest region, with harvesting usually between June and August and ginning carried out by third parties. Cattle ranching is used as a diversification tool and as a way to mitigate climate risk, with breeding operations in Bahia and pasture- and feedlot-based finishing in Paraguay, taking advantage of soil and climate conditions favorable to pastures.

The company’s revenue generation is diversified between the sale of agricultural products and real estate activity. In the fiscal year ended June 30, 2025, net revenue totaled approximately R$ 1.23 billion, consisting mainly of the sale of grains, sugarcane, cotton, cattle, leases, other operating income, and gains from farm sales. Grains accounted for roughly half of net operating revenue, while sugarcane represented a little more than one-third, with smaller contributions from cotton, cattle, and leases. The sale of farms and changes in the fair value of biological assets also contributed significantly to results, reinforcing the hybrid nature of the business, combining farming operations and land asset management. The customer base is concentrated in large trading houses and agribusiness companies, with three customers each representing more than 10% of consolidated revenue in 2025, particularly in the sugarcane and grain/cotton segments.

Geographically, BrasilAgro structures its portfolio to dilute climate and market risks across regions and countries. In Brazil, its farms are distributed across different biomes and agricultural production zones, which allows it to stagger planting and harvesting seasons and take advantage of different climate and logistics windows. In Paraguay, it maintains a large property dedicated to grain and pasture production, with a cattle finishing system that benefits from local soil and forage quality. In Bolivia, it operates grain and sugarcane areas, with supply contracts for sugarcane to local mills. Sales of agricultural production are directed to customers located in Brazil, Paraguay, and Bolivia, with a relevant share of soybeans, corn, and cotton destined for export via global trading companies, while part of the corn, cottonseed, and other by-products serves domestic industry and livestock.

Distribution of production is essentially based on road transport, with intensive use of contracted logistics service providers. For soybeans and corn, most operations are carried out under FOB terms, in which trading companies are responsible for pickup at farms or warehouses, although the company also operates under CIF terms in certain contracts. In sugarcane, BrasilAgro maintains long-term supply agreements and rural partnerships with mills such as Brenco and Agro Serra, under which it delivers 100% of the production of certain farms, in arrangements that ensure regular off-take of the harvest. In Bolivia, there are supply contracts with local sugar and ethanol mills, without minimum volume requirements, which provides production flexibility. In cotton, lint is mostly exported via trading companies, while cottonseed is sold for crushing or directly to livestock operations.

In terms of regulation and sustainability, BrasilAgro is subject to extensive Brazilian environmental legislation at the federal, state, and municipal levels, especially regarding licensing, water use, erosion control, waste management, and maintenance of preservation areas. The company maintains legal reserve areas and permanent preservation areas in compliance with the Forest Code, with registrations in the Rural Environmental Registry (CAR) and programs to restore degraded areas when necessary. It also monitors surface and groundwater withdrawals, complying with water rights limits and conducting water quality tests for human consumption. In Paraguay and Bolivia, it follows similar local requirements for environmental licenses and conditions, preserving legal reserve areas where applicable. The adoption of corporate governance practices aligned with B3’s Novo Mercado and the listing of ADRs on the NYSE demonstrate a corporate structure focused on transparency, alignment with shareholders, and professional management of environmental and operational risk in agribusiness.

BrasilAgro’s governance structure reflects its presence in capital markets in Brazil and abroad. The company was the first agricultural producer to go public on B3’s Novo Mercado and also the first Brazilian agribusiness company to list ADRs on the New York Stock Exchange, which imposed high standards for disclosure, internal controls, and compliance. Since the IPO, share capital has increased at various times through equity offerings and the exercise of warrants, leading to dilution and the entry of new institutional investors. The board of directors and executive management are responsible for capital allocation decisions between land acquisition, productivity investments, farm sales, and expansion through partnerships and leases, seeking to balance agricultural operating returns, real estate appreciation, and management of risks associated with climate, commodity prices, exchange rates, and the farmland market.