Good afternoon. Welcome to the conference call of BrasilAgro concerning the results for Q2 2019. We will have with us Mr. André Guillaumon, CEO; and Mr. Gustavo Lopez, Administrative Officer and Investor Relations Officer. We inform that the presentation is being recorded. [Operator Instructions] Next, we will begin the Q&A session exclusively for investors and analysts when further instructions will be supplied. [Operator Instructions] The audio is being presented simultaneously via the Internet at the address www.brazil-agro.com, where the presentation is available. Before proceeding, we would like to clarify that any declaration that may be made during this conference call concerning the business perspectives of BrasilAgro, projections and operational financial goals are based on assumptions of the Company's board and also on information currently available. They involve risks and uncertainties, because they refer to future events and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions industry conditions and other operational factors may affect the future performance of BrasilAgro and lead to results that may differ materially from those expressed in these considerations about the future. Now we would like to pass the floor to Mr. André Guillaumon, Chief Executive Officer who will begin the presentation. Please Mr. André you may proceed. André Guillaumon: Thank you. Good afternoon once again it's a pleasure to have this channel open with you to talk about our results for Q2, 2019 which has been for us in a certain way for the whole sector a very challenging year we will comment on this later. But we trust in the Company's strategy and in the solid delivery of results. I would like to go on to Page 1, the page with the highlights. In the highlights, we had in the closing for the calendar year and…

Thank you, André. I'd like to thank you all for being with us, good afternoon. Now Page 8, Company's EBITDA. When we see the 6 months in 2019, we have the results here as you can see, expenses and also we have financial revenues. We see the impact here. Taxes due to the sale of the farm and the operations during the semester, BRL24 million, that's the impact depreciation and amortization of sugarcane in each one of the units where we develop BRL19.7 million and BRL175 million against 59 of the previous years. So we may highlight this. We noticed that in the 6 months of 2018, the Company had an operational EBIT that was positive as a consequence of the second part of the sugarcane harvest, the second part of the harvest for sugarcane in the 6 months of 2018 and 2019 we have 1.3 million tons of sugarcane delivered and this generated the results here as you can see that it is superior to the BRL44 million of last year. André mentioned we had received the sugarcane plantations then - which this already had irrigation. This year the main difference in relation to last year, the results from real estate BRL106 million we are recording this in the first semester and also the sale of Jatobá Farm which generates this result BRL175 million in EBITDA. Nevertheless we always try to improve the management so we excluded the effects of gains and losses due to the inventory information. We have the soybean in Mato Grosso we're estimating the productivity, the cost, and calculating the fair price and also 26,000 hectares of sugarcane that are producing. This amount, this value in the 6 months gave us our result of BRL28.7 million and we're adding the results part of the results…

[Operator Instructions] The first question comes from Mr. Ian Miller from Credit Suisse.

Please talk about the liquidity, liquidity and the market for farmland, do you expect the sale of farmlands to foreigners? What is your vision about the price of grains due to the trade war between U.S. and China? And we know that there was a drop too, do you believe the price of soybean will rise again with more exports from Brazil?

Yes excellent questions, yes two questions we could talk about them all afternoon. So the first topic liquidity of farmland sale to foreigners. I'd like to mention some points yes, liquidity is a consequence of good margin for the producer and legal security. This is a year when margins are maintained or with a small drop in relation to last year and this may bring liquidity to farmers. Now in terms of selling to foreigners, the new government is making an effort to make structural reforms. We have an active agenda through our association. At the end of the year, we requested a project that government has been regulating other sectors. We’d like to stress the restriction to foreigners was in the hospital sector they removed this at the end of the year. The government deregulated the issue of foreign owners in airlines, the government allowed more investment from foreigners in airline. So I believe we have a law also coming up in our sector. I believe the government will concentrate it first efforts, the first efforts on the part of the government will be the structural reforms. And if we were the government we would do the same especially social security and retirement, the retirement programs but they will work on this during the first semester. After these reforms social security retirement, then other reforms says that they are calling secondary, but are important for us should come this year, but after the first semester. This is our vision. We have now a government that is totally different, Ministry of Agriculture with people who know about this topic and the importance of this topic thus bringing legal security for investors. So that's our answer for that. Now the trade war between U.S. and China soybean, if we look at…

Our next question comes from Mr. Pedro Soares, BTG Pactual Bank. Mr. Pedro left the queue. [Operator Instructions] Since there are no more questions, I'd like to hand the floor to Mr. André Guillaumon, for his final comments. André Guillaumon: Well, I believe - we have a question I believe from Mr. Caio Greiner, BTG Pactual Bank. Mr. Caio yes, you have the floor.

We had a problem in the - our telephone line. My question has to do with the sale of farmland. You have a goal of BRL150 million a year. And with the sale in the first semester, you are already close to BRL150 million. Do you believe there will be less sales? And you said you will wait to see the reforms, this will make the market - the farmland more attractive after the reforms. Or do you intend to be aggressive in selling lands even before the reforms? The second question, in the release, you mentioned lots of productivity of 16% in corn. How much did this represent in soybean in Maranhpo to continue? You mentioned that due to the better productivity in Mato Grosso, the impact will be smaller. But if you exclude Mato Grosso, what would be the impact? Thank you. André Guillaumon: Pedro, thank you. Two challenging questions. Sale of farmlands is a goal that all the executives have. Our goal is BRL70 million to BRL80 million. We sold more than this. But the issue is we will make decisions to sell if we believe we have good deals. We're working actively toward this. And you can expect that we might have good opportunities. We're working hard on this. We are working on some of these projects, because the liquidity is uncertain. I work to appreciate the value of the farmland, but I have to search. If we have good opportunities, we will sell. If we look at the historical average, we've been selling BRL100 million and BRL200 million and BRL300 million a year. Some years, we will sell BRL150 million, some less, but on average, around BRL103 million. You can be sure that we continue looking for good deals. If you find them, we will…

[Operator Instructions] Since there are no more questions, I'd like to pass the floor to Mr. André Guillaumon for his final comments. André Guillaumon: Well, thank you very much for being with us during this hour. Yes, I would like to say it's a challenging year, we're working hard, everyone is working hard in the Company to deliver solid constant results. I believe once again I reinforced that we have a good strategy. The Company's strategy never change, we always have the same goals and we believe in this combination of sale of lands and operations, and we will be working on this, working more and more on these two pillars to have a balanced result with these two pillars. We believe that this is a winning strategy in the medium and long-term. Thank you very much. Investor Relations area is always available for any clarification, we are available. Once again, thank you very much. It was a great pleasure to be with you, thank you.

Well, this concludes BrasilAgro's conference call. We thank you all for your participation. We wish you a good afternoon.