SLCE3 SLC Agrícola

SLC Agrícola S.A. is part of Grupo SLC, a family-origin conglomerate founded in 1945 in Horizontina (RS) by three families of German immigrants, initially focused on manufacturing self-propelled grain harvesters. The company began its agricultural activities in 1977, with the acquisition of Fazenda Paineira, in the municipality of Coronel Bicaco (RS), dedicated to soybean and wheat cultivation. Throughout the 1980s, the company intensified agricultural mechanization in its operations, supported by a joint venture with John Deere between 1979 and 1999, an experience that contributed to the adoption of high-tech machinery and to the professionalization of management. Starting in 1979, SLC Agrícola directed its expansion toward Brazil’s Cerrado region, gradually shifting its land investment focus from the South to the Center-West, following the opening of new agricultural frontiers in the country.

The company completed its IPO in June 2007, when its common shares SLCE3 began trading on B3, making it one of the first companies genuinely focused on grain and cotton production to access the capital markets. The proceeds from the primary offering were allocated mainly to the acquisition and leasing of land, soil correction, and the purchase of machinery and equipment to expand the cultivated area. Since then, SLC Agrícola has used the capital markets and long-term financing, such as the US$ 40 million loan obtained from IFC in 2008, to sustain a continuous growth cycle based on expanding planted area, increasing productivity, and developing strategic partnerships. Throughout the 2010s, the company structured joint ventures with groups such as Agro Penido and Mitsui, focused on the development and exploitation of farmland, reinforcing a growth model that combines owned properties, leased areas, and partnership-based operations.

SLC Agrícola’s business model is centered on large-scale production of agricultural commodities, focusing on lint cotton, soybeans, and corn, in addition to seed production and crop-livestock-forest integration (ILPF) initiatives. The company operates predominantly in primary activities, carrying out the cultivation, harvesting, basic processing, and commercialization of its products, which may be destined to both domestic and foreign markets. In 2024, consolidated net revenue reached R$ 6.9 billion, with a strong concentration in lint cotton, soybeans, and corn. The portfolio of activities described in its bylaws includes, in addition to agriculture and livestock, the production and sale of seeds and seedlings, grain processing and storage, the provision of services with agricultural machinery and storage for third parties, and the commercialization and export of agricultural products. The company’s corporate purpose also contemplates agro-industrial activities such as sugarcane processing, sugar, alcohol, and crude vegetable oil manufacturing, as well as energy trading, although its current revenue generation is dominated by agricultural production of grains, fibers, and seeds.

The revenue breakdown highlights the relevance of the main crops to its economic performance. In 2024, lint cotton accounted for 51.6% of net revenue, followed by soybeans (including seeds) with 30.3% and corn with 7.6%. Cottonseed, which includes commercial components and seeds, represented 4.6%, while cattle herd and other revenues had a smaller share. This structure reflects a diversification strategy within agribusiness, but with clear leadership from cotton and soybeans. The company adopts a main crop and second crop system that takes advantage of the Cerrado’s geoclimatic conditions, using early-cycle cultivars to enable subsequent planting of cotton and corn, mainly in states such as Mato Grosso, Mato Grosso do Sul, and Maranhão. High mechanization, intensive use of technology, investment in variety and management research, and soil management are aimed at increasing yield per hectare, with internal indices often above Brazilian averages for cotton, soybeans, and corn.

From an operational standpoint, SLC Agrícola organizes its activities into two major economic segments: agricultural production and land business. The agricultural production segment encompasses cotton, soybeans, and corn cultivation and the livestock activity linked to crop-livestock integration, in addition to seed production under the SLC Sementes brand, which offers soybean and cotton seeds focused on yield potential and fiber quality. The land segment involves the management of the land portfolio, which includes acquisition, development, eventual sale or recycling of properties, and long-term lease agreements. The company pursues an active strategy of expanding cultivated area through acquisitions, joint ventures, and new leases, such as the business combination with Terra Santa Agro, the contract with Agricola Xingu, and the acquisition of Sierentz Agro Brasil, as well as the expansion of partnerships with Agro Penido and Agropecuária Rica. These transactions increase the potential planted area, dilute fixed costs, and seek scale gains over a growing base of hectares.

The company’s geographic presence is concentrated in the Cerrado biome, with twenty-three production units distributed across seven states: Goiás, Mato Grosso, Maranhão, Mato Grosso do Sul, Bahia, Piauí, and Minas Gerais. This regional diversification helps mitigate climate risks specific to each area, balancing the planting and harvesting calendar among different microregions. The land portfolio under control combines owned and leased areas, with large-scale farms, some organized as joint operations with local partners. In parallel, the company maintains a significant international client base, with a strong presence in the export market. In 2024, of its net operating revenue, approximately R$ 5.9 billion came from foreign markets, with notable destinations including China, Pakistan, Vietnam, Indonesia, and Bangladesh. In domestic sales, trading companies and large processing industries, such as Cargill, Omnicotton, and other agribusiness groups, play a relevant role, representing a substantial share of annual revenue.

SLC Agrícola’s operations are subject to a regulatory framework that covers agrarian and environmental legislation as well as specific rules for the production, storage, and commercialization of agricultural products. The company operates in compliance with environmental licensing requirements established by state and municipal agencies, in addition to complying with federal rules related to water use, legal reserves, and permanent preservation areas, in line with the Forest Code and the Rural Environmental Registry. The Ministry of Agriculture and Livestock (MAPA) oversees stages such as production, storage, distribution, import, and export of agricultural products and seeds. The company states that it maintains systematic management of environmental licenses and requirements, including monitoring native vegetation areas, controlling input use, and managing waste and effluents. In terms of operational risk, the company acknowledges the relevance of climate factors, fire events in the Cerrado, and possible changes in global trade policies, such as tariffs and import quotas that may affect the flow of agricultural commodity exports.

On the environmental, social, and governance (ESG) agenda, SLC Agrícola maintains formal policies such as the Zero Deforestation Policy, which prohibits the conversion of native vegetation in owned and leased areas as of August 2021, and incorporates commitments such as the Soy Moratorium in the Amazon. The company states that it has more than 100 thousand hectares in legal reserves and permanent preservation areas, corresponding to a relevant share of its owned areas, and that it does not use burning practices in its operations. In terms of environmental management, the company holds certifications such as ISO 14001 and RTRS (Round Table on Responsible Soy), and has begun certifying farms under regenerative agriculture standards such as Regenagri. Sustainability governance involves the Board of Directors, the ESG Committee, and dedicated executive structures, as well as Instituto SLC for social initiatives. In the innovation field, programs such as Agro X, Ideias&Resultados, and SLC Ventures seek to connect farm operations with startups, technology projects, and venture-building models, focusing on efficiency gains, emissions reduction, and the development of new solutions applied to agribusiness.

As an issuer of common shares SLCE3 traded on B3, SLC Agrícola combines the profile of a large agricultural commodities producer with a broad portfolio of land assets in the Cerrado and a revenue base highly exposed to foreign markets. The company’s historical evolution includes building a business model intensive in technology, scale, and strategic partnerships, aligned with global demand dynamics for cotton, soybeans, and corn. The company continues to expand its planted area through acquisitions, long-term leases, and joint ventures, while reinforcing environmental commitments and developing innovation initiatives aimed at managing productivity, mitigating climate risks, and complying with international sustainability standards in large-scale agricultural production.