Julio Piza - CEO and IRO

Good morning. Welcome everyone to BrasilAgro’s Second Quarter 2016 Results Conference Call. Today’s live webcast and presentation may be accessed through BrasilAgro’s website at www.brasil-agro.com. We would like to inform you that this event is recorded and all participants will be in a listen-only mode during the company’s presentation. After BrasilAgro’s remarks, there will be a question-and-answer session for analysts only. At that time, further instructions will be given. [Operator Instructions] Before proceeding, let me mention that forward-looking statements are based on beliefs and assumptions of BrasilAgro management and on information currently available to the company. They involve risks and uncertainties because they relate to future events and therefore depend on circumstances that may or may not occur. Investors should understand that conditions related to the macroeconomic scenario, industry and other factors could also cause results to differ materially from those expressed in such forward-looking statements. Now, I’ll turn the conference over to Mr. Julio Piza, Chief Executive Officer. Sir, you may begin your conference.

Hi, everyone. Thanks for joining our call today, our second quarter fiscal year 2016. We can move onto the presentation on Page 2, they have the highlights of this year. Net revenues a little over R$100 million at the end of this semester, and net income close to R$46 million, adjusted EBITDA a little over R$18 million. And also on the fiscal -- the two quarters, on the whole current calendar year of 2015 we supplied over 1 million tons of sugarcane. I'm going to talk a little bit more about that. Before we go into the details on Page 3, we have soybean price evolutions and this is the chart we've been following for a while and given these analogies. And you can see that -- one of the lines is, the green line is the price in reais and the yellow one is the price in dollars. And a year and half years ago, the prices in reais and dollars were very close, although we're moving on the similar pace. And since then there has been a sort of decouple. So now we have the soybean pricing in reais on the highest ever level and the price in dollars on the lowest points in the last five years. So this is an interesting situation. The full impact it hasn’t been through the whole system yet, because most of the soybeans that we've planted on this season, its cost structure was formed using a lower exchange rate. So if you have some issues when this whole thing is going to get stabilize. So next year we're going to have a better picture on what the full impact of this. But it's interesting to note that the exchange rate has been beneficial for the sector as you have the revenues…

Thank you. Thanks everyone for joining us. I think it's been a pretty good year so far and as I said before in the conference in Portuguese, Brazil right now is in a very tough situation and certainly we are concerned about the political and economic situation of the country. And I think we are very concerned. There is not much you can say about the volatility in the markets and everything else, but as managers of this company we are quite pleased because we have been preparing ourselves for this, from the last few years. So now the company is at a fantastic position to take advantage of what's happened. We have a very strong balance sheet, our solid cash position we've been able to adopt ourselves and rejuvenate ourselves operationally over the time. So I think the company is super well positioned to deal with the situations that we are facing in Brazil. So we are quite pleased as managers, although concerned certainly. That's what we had for this semester and hope to see you again in the next quarter. Thank you.

Thank you. This concludes today's BrasilAgro's second quarter 2016 results conference call. You may disconnect your lines at this time.