06/30/ SLC AGRICOLA S.A Version: 1 (A free translation of the original in Portuguese) Capital composition... 1 Dividends...

Transcription

1 06/30/ SLC AGRICOLA S.A Version: 1 Contents Company Information Capital composition Dividends... 2 Individual financial statements Balance sheet - Assets... 3 Balance sheet - Liabilities... 4 Statement of income... 6 Statements of comprehensive income... 7 Statement of cash flows... 8 Statement of changes in shareholders equity Statement of changes in shareholders' equity (DMPL) - 01/01/2018 to 06/30/ Statement of changes in shareholders' equity (DMPL) - 01/01/2017 to 06/30/ Statement of added-value Consolidated financial statements Balance sheet - Assets Balance sheet - Liabilities Statement of income Statements of comprehensive income Statement of cash flows Statement of changes in shareholders equity DMPL - 01/01/2018 to 06/30/ DMPL - 01/01/2017 to 06/30/ Statement of added-value Management report and comments on performance Notes to the quarterly information Commentary on the Behavior of Business Projections Other informations the company deems to be relevant Reports and declarations Special Review Report - Without Respect Opinion of the Supervisory Board or Equivalent Body Declaration of directors on the financial statements Statements of Directors on the Report of the Independent Auditor

2 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Company information / Capital composition Number of shares (units) Paid-up capital Current Quarter 06/30/2018 Common shares 95,297,500 Preferred shares 0 Total 95,297,500 Treasury shares Common shares 1,353,678 Preferred shares 0 Total 1,353,678 Page 2 of 120

3 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Company information/dividends Event Date approved Description Initial date of payment Type of share Class of share Amount per share (R$/share) Ordinary General Assembly 04/25/2018 Dividends 05/10/2018 Commom Page 3 of 120

4 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Individual financial statements / Balance sheet Assets (In thousands of Reais) Code of account Account description Accumulated of Accumulated of the current year the previous year 06/30/ /31/ Total Assets 4,719,400 4,718, Current assets 1,808,202 1,832, Cash and cash equivalents 409, , Financial investments 49, , Fair Value Investments 49, , Trading Securities 49, , Accounts receivable 90, , Trade accounts receivable 35, , Other accounts receivable 54,513 61, Advances to suppliers 11,085 7, Operations with derivatives 33,142 45, Securities and credits receivable Related party credits 9,093 7, Other accounts receivable 1,112 1, Inventories 471, , Biological assets 741, , Recoverable taxes 22,470 31, Current taxes recoverable 22,470 31, Recoverable taxes 22,470 31, Prepaid expenses 20,927 7, Others Current Assets 2,370 2, Non-Current Assets for Sale 2,370 2, Anticipated Expenses 2,370 2, Non-current assets 2,911,198 2,885, Long term assets 129, , Related party credits 2,482 2, Other Non-Current Assets 127, , Other Non-Current Assets 50,591 38, Transactions with Derivatives 29,463 23, Other Accounts Receivable 13,555 16, Taxes to recover 33,545 32, Investments 2,166,880 2,169, Equity interest 2,166,880 2,169, Equity in associates 2,166,880 2,169, Property, plant and equipment 601, , Fixed assets in operation 570, , Constructions in progress 31,772 49, Intangible assets 12,880 10, Intangible assets 12,880 10, Other (Systems) 12,880 10,319 Page 4 of 120

5 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Individual financial statements / Balance sheet - Liabilities (In thousands of Reais) Code of account Page 5 of 120 Account description Accumulated of Accumulated of the the current year previous year 06/30/ /31/ Total Liabilities 4,719,400 4,718, Current liabilities 1,292,065 1,415, Social and labor obligations 16,506 13, Social charges 15,982 13, Labor obligations Trade payables 99, , Domestic trade payables 99, , Tax liabilities 12,065 21, Federal tax liabilities 11,274 20, Income and social contribution tax payable 10,658 19, Taxes, rates, and sundry contributions 616 1, State tax liabilities Municipal tax liabilities Loans and financing 678, , Loans and financing 678, , In local currency 513, , In foreign currency 165, , Other liabilities 454, , Liabilities with related parties 53,988 23, Debits with subsidiaries 53,777 22, Debts with Other Related Parties Other 400, , Operations with derivatives 13 83, Lease Payable 134,620 92, Other debits 224,247 40, Other debits 41,033 34, Other Debits 1,077 3, Provisions 30,353 37, Tax, social security, labor and civil provisions 30,023 36, Social security and labor provisions 16,540 10, Provisions to employee benefits 11,593 23, Provisions for labor contingencies 1,890 1, Other Provisions Provisions for Environmental Liabilities and Deactivation Non-current liabilities 920, , Loans and financing 775, , Loans and financing 775, , In local currency 596, , In foreign currency 179, , Other liabilities 25,995 14, Other 25,995 14, Operations with derivatives 25,914 14,307

6 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: Other debits Deferred taxes 118, , Deferred income and social contribution taxes 118, , Shareholders' equity 2,506,936 2,513, Paid-in capital 947, , Capital reserves 62,967 49, Goodwill in the issue of shares 59,615 66, Options granted 46,564 44, Treasury shares (43,212) (60,596) Profit reserves 201, , Legal reserve 28,074 28, Statutory reserve 163, , Profit retention reserved 5,628 5, Additional dividends proposed 0 116, Incentive Investment Reserve 4,367 4, Retained earnings/losses 312, Other comprehensive income 981,918 1,110,732 Page 6 of 120

7 06/30/ SLC AGRICOLA S.A Version: 1 Individual financial statements / Statement of income (In thousands of Reais) Code of account Account description Accumulated of the Same quarter Accumulated of the Current Quarter Current year previous year Previous year 04/01/2018 to 06/30/ /01/2018 to 06/30/ /01/2017 to 06/30/ /01/2017 to 06/30/ Income from sales of goods and/or services 631,188 1,178, , , Product Operational Revenue 384, , , , Biological Assets 246, , , , Cost of goods and/or services sold (393,598) (692,784) (272,089) (519,823) Cost of Goods (258,718) (468,932) (236,720) (420,511) Biological assets appropriate to the cost (134,880) (223,852) (35,369) (99,312) 3.03 Gross income 237, , , , Operating income/expenses (1,000) (14,338) (13,491) (28,420) Selling expenses (13,944) (33,770) (11,256) (25,380) General and administrative expenses (20,024) (42,066) (17,096) (35,601) General and administrative (17,868) (33,761) (15,083) (29,074) Management compensation (2,156) (8,305) (2,013) (6,527) Other Operating Income 3,707 5,359 1,399 1, Other operating expenses (555) (1,482) (258) (2,037) Equity income (loss) 29,816 57,621 13,720 32, Income (loss) before financial income (loss) and taxes 236, , , , Financial income (loss), net (14,088) (28,547) (19,240) (39,911) Financial income 51,179 83,921 33,499 99, Financial expenses (65,267) (112,468) (52,739) (139,618) 3.07 Income (loss) before income tax 222, , , , Income and social contribution taxes (65,454) (131,746) (33,878) (63,837) Current (18,446) (35,518) (530) (898) Deferred (47,008) (96,228) (33,348) (62,939) 3.09 Net income (loss) of continued operations 157, ,369 76, , Net Income (loss) for the period 157, ,369 76, , Earnings per share - (R$ / Shares) Basic earnings per share Common (ON) Diluted earnings per share Common (ON) Page 7 of 120

8 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Individual financial statements / Statement of Comprehensive Income (In thousands of Reais) Code of account Account description Current Quarter Accumulated of the current year Same quarter previous year Accumulated of the Previous year 04/01/2018 to 06/30/ /01/2018 to 06/30/ /01/2017 to 06/30/ /01/2017 to 06/30/ Net income for the period 157, ,369 76, , Other comprehensive income (153,115) (127,356) (14,298) 68, Derivatives - Cash flow hedge (219,578) (239,558) (19,807) (4,561) Derivatives - Cash flow hedge - Reflex of the subsidiaries (8,191) (8,189) (1,224) (719) Income tax and social contribution 74,655 81,449 6,733 1, Reflection Adjustment by Merger (1) (1) Fair Value Adjustment Investment Property 0 0 (1) 15, Capital gain (loss) from equity interest 0 38, , Comprehensive income (loss) for the period 3, ,013 62, ,625 Page 8 of 120

9 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Individual financial statements / Statement of cash flows - Indirect method (In thousands of Reais) Code of account Account description Accumulated of the current year Accumulated of the previous year 01/01/2018 to 06/30/ /01/2017 to 06/30/ Net cash from operations 212,451 (153,506) Cash from operations 301, , Net income (loss) before income and social contribution taxes 443, , Depreciation and amortization 28,992 26, Income (loss) from write off of property, plant and equipment 1,248 2, Interest, exchange and monetary variation (57,621) (32,671) Equity income (loss) 91, , Interest, exchange and monetary variation 2,241 2, Share-based compensation (219,549) (115,211) Share-based compensation 0 (496) Variation in biological assets 11,413 9, Provision (reversal) for inventory adjustments and losses 0 1, Changes in assets and liabilities (89,171) (369,969) Trade accounts receivable 122,756 16, Inventories and biological assets (24,967) (38,445) Recoverable taxes (2,896) (11,001) Trade notes receivable (81) Financial Investments 74,024 (13,329) Other accounts receivable (10,604) (11,296) Trade payables (257,983) (248,454) Tax and Social Obligations (26,226) (12,176) Transactions with related parties 28,855 13, Operations with derivatives (47,879) (31,376) Interest Paid 42,184 34, Advances from clients 6,842 (1,500) Other accounts payable (9,463) 23, Leases Payable 92, Interest paid (43,374) (91,219) Dividends received (27,904) Income Tax and Social Contribution Payments (4,485) Net cash used in investment activities (53,091) (27,261) In Investment (1,056) In property, plant and equipment (48,990) (24,087) In intangible assets (3,045) (3,174) 6.03 Net cash generated/(consumed) in financing activities (234,884) (390,990) Loans and financing obtained 368, , Loans and financing paid (327,596) (589,130) Sale (repurchase) of shares (76,113) Dividends payable (199,992) (14,222) 6.05 Increase (decrease) in cash and cash equivalents (75,524) (571,757) Opening balance of cash and cash equivalents 484, , Closing balance of cash and cash equivalents 409, ,252 Page 9 of 120

10 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Individual financial statements / Statement of changes in shareholders equity / DMPL - 01/01/2018 to 06/30/2018 (In thousands of Reais) Code of Account description Paid-up account capital Capital reserves, Options granted and Treasury shares Profit reserves Retained earnings (loss) Other comprehensive income Shareholders' equity 5.01 Opening balances 947,522 49, , ,110,732 2,513, Adjusted opening balances 947,522 49, , ,110,732 2,513, Capital transactions with partners 0 12,997 (86,868) 0 0 (73,871) Recognized options granted 0 2, , Treasury shares acquired 0 (81,600) (81,600) Treasury shares sold 0 11, , Goodwill on the sale of Treasury Shares 0 (6,409) (6,409) Goodwill on Sale of Shares 0 86,868 (86,868) Total comprehensive income ,827 (128,814) 184, Net income for the period , , Other comprehensive income ,458 (128,814) (127,356) Adjustment of financial instruments (239,558) (239,558) Taxes on adjustments of financial instruments ,449 81, Equity income (loss) on comprehensive income of subsidiaries and associates (8,189) (8,189) Realization of deemed cost of property, plant and equipment - Depreciation ,440 (1,440) Realization of deemed cost of property, plant and equipment - Sales (17) Realization of deemed cost of property, plant and equipment - Subsidiaries (36) Adjustment cost assigned PP&E in Subsidiary (1) 0 (1) Adjustment Cost Assigned Property, Plant and Equipment in Subsidiary ,943 38, Internal changes in equity 0 0 (116,405) 0 0 (116,405) Additional approved dividend over (116,405) 0 0 (116,405) 5.07 Closing balances 947,522 62, , , ,918 2,506,936 Page 10 of 120

11 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Individual financial statements / Statement of changes in shareholders equity / DMPL - 01/01/2017 to 06/30/2017 (In thousands of Reais) Code of Account description account Paid-up capital Capital reserves, Options granted and Treasury shares Profit reserves Retained earnings (loss) Other comprehensive income Shareholders' equity 5.01 Opening balances 947,522 80, , ,129,785 2,451, Adjusted opening balances 947,522 80, , ,129,785 2,451, Capital transactions with partners 0 3, , Recognized options granted 0 2, , Treasury shares acquired 0 (20,002) (20,002) Treasury shares sold 0 22, , Goodwill on the sale of Treasury Shares 0 (1,624) (1,624) 5.05 Total comprehensive income ,611 65, , Net income for the period , , Other comprehensive income ,308 65,013 68, Adjustment of financial instruments (4,561) (4,561) Taxes on adjustments of financial instruments ,550 1, Equity income (loss) on comprehensive income of subsidiaries and associates (719) (719) Realization of deemed cost of property, plant and equipment - Depreciation ,358 (2,358) Realization of deemed cost of property, plant and equipment - Sales (434) Realization of deemed cost of property, plant and equipment - Subsidiaries (19) Other ,953 15, Prior years Adjustment ,601 55, Adjustment cost assigned PP&E in Subsidiary Internal changes in equity 0 0 (7,112) 0 0 (7,112) Proposed dividends 0 0 (7,112) 0 0 (7,112) 5.07 Closing balances 947,522 84, , ,611 1,194,798 2,666,666 Page 11 of 120

12 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Individual financial statements / Statement of added value (In thousands of Reais) Code of account Account description Accumulated of the current year Accumulated of the previous year 01/01/2018 to 06/30/ /01/2017 to 06/30/ Revenues 1,243, , Sale of goods, products and services 781, , Other income 449, , Other income 6,297 6, Variation of the fair value of biological assets 443, , Income from construction of own assets 12,693 10, Inputs acquired from third parties (616,682) (416,894) Cost of goods, goods and services sold (1,799) (6,324) Materials, energy, outsuorced services and other (148,615) (91,401) Loss/recovery of asset values Other (466,268) (319,665) Raw materials used (242,416) (220,355) Adjustment to fair value of biological assets (223,852) (99,310) 7.03 Gross added value 626, , Retentions (28,992) (26,924) Depreciation, amortization and depletion (28,992) (26,924) 7.05 Net added value produced 597, , Added value received as transfer 141, , Equity income (loss) 57,621 32, Financial income 83, , Other Total added value payable 739, , Distribution of added value 739, , Personnel 96,221 79, Direct remuneration 56,337 46, Benefits 34,978 29, F.G.T.S. 4,906 3, Taxes, duties and contributions 135, , Federal 134, , State 1,386 17, Municipal Loan capital remuneration 196, , Interest 133, , Rentals 62,374 42, Remuneration of own capital 311, , Retained Earnings/Loss for the period 311, ,303 Page 12 of 120

13 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Consolidated financial statements / Balance sheet - Assets (In thousands of Reais) Code of account Account description Accumulated of Accumulated of the current year the Previous Year 06/30/ /31/ Total Assets 5,232,212 5,293, Current assets 2,150,147 2,250, Cash and cash equivalents 471, , Financial investments 51, , Fair Value Investments 51, , Trading Securities 51, , Accounts receivable 217, , Trade accounts receivable 40, , Other accounts receivable 177, , Advances to suppliers 13,440 9, Operations with derivatives 33,349 47, Securities and credits receivable 126, , Related party credits Other accounts receivable 3,833 3, Inventories 552, , Biological assets 796, , Recoverable taxes 34,616 45, Current taxes recoverable 34,616 45, Recoverable taxes 34,616 45, Prepaid expenses 23,219 8, Others Current Assets 2,370 2, Non-current assets 3,082,065 3,043, Long term assets 203, , Prepaid expenses 15,607 18, Deferred Income Tax and Social Contribution 15,607 18, Related party credits 2,482 2, Other Non-Current Assets 185, , Other Non-Current Assets 83,099 62, Transactions with Derivatives 29,463 23, Other Accounts Receivable 14,316 17, Advances to suppliers 58,493 57, Investments 202, , Investiment property 202, , Property, plant and equipment 2,663,544 2,647, Fixed assets in operation 2,629,342 2,587, Fixed Assets Leased 34,202 60, Intangible assets 12,934 10, Intangible assets 12,934 10, Other (Systems) 12,934 10,400 Page 13 of 120

14 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Consolidated financial statements / Balance sheet - Liabilities (In thousands of Reais) Code of account Page 14 of 120 Account description Accumulated of Accumulated of the current year the Previous Year 06/30/ /31/ Total Liabilities 5,232,212 5,293, Current liabilities 1,486,064 1,662, Social and labor obligations 24,722 23, Social charges 24,124 22, Labor obligations Trade payables 118, , Domestic trade payables 118, , Tax liabilities 15,499 28, Federal tax liabilities 14,632 27, Income and social contribution tax payable 13,891 25, Taxes, rates, and sundry contributions 741 1, State tax liabilities 614 1, Municipal tax liabilities Loans and financing 825, , Loans and financing 825, , In local currency 659, , In foreign currency 165, , Other liabilities 468, , Liabilities with related parties Debts with Other Related Parties Other 467, , Dividends and Interest Payable 10, Operations with derivatives 13 83, Lease Payable 152,179 98, Other debits 247,915 42, Other debits 42,033 37, Other Debits 13,873 17, Other Debits 1,141 3, Provisions 34,372 41, Tax, social security, labor and civil provisions 34,042 41, Social security and labor provisions 18,696 12, Provisions to employee benefits 13,150 26, Provisions for labor contingencies 2,196 2, Other Provisions Provisions for Environmental Liabilities and Deactivation Non-current liabilities 1,043, , Loans and financing 835, , Loans and financing 835, , In local currency 655, , In foreign currency 179, , Other liabilities 27,893 14, Other 27,893 14, Operations with derivatives 27,812 14,372

15 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: Other debits Deferred taxes 180, , Deferred income and social contribution taxes 180, , Shareholders' equity 2,702,679 2,701, Paid-in capital 947, , Capital reserves 62,967 49, Goodwill in the issue of shares 59,615 66, Options granted 46,564 44, Treasury shares (43,212) (60,596) Profit reserves 201, , Legal reserve 28,074 28, Statutory reserve 163, , Profit retention reserved 5,628 5, Additional dividends proposed 0 116, Incentive Investment Reserve 4,367 4, Retained earnings/losses 312, Other comprehensive income 981,918 1,110, Non-controlling interest 195, ,628 Page 15 of 120

16 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Consolidated financial statements / Statement of income (In thousands of Reais) Code of Accumulated of the Same quarter Accumulated of the account Account description Current Quarter Current Year previous year Previous year 04/01/2018 to 06/30/ /01/2018 to 06/30/ /01/2017 to 06/30/ /01/2017 to 06/30/ Income from sales of goods and/or services 752,666 1,415, , , Product Operational Revenue 464, , , , Biological Assets 288, , , , Cost of goods and/or services sold (451,239) (799,483) (303,451) (577,622) Cost of Goods (295,167) (536,846) (262,805) (466,181) Biological assets appropriate to the cost (156,072) (262,637) (40,646) (111,441) 3.03 Gross income 301, , , , Operating income/expenses (36,844) (83,863) (31,484) (69,209) Selling expenses (17,559) (41,324) (13,101) (29,218) General and administrative expenses (22,411) (46,575) (19,402) (39,764) General and administrative (20,003) (37,429) (17,114) (32,497) Management compensation (2,408) (9,146) (2,288) (7,267) Other Operating Income 3,684 5,452 1,398 1, Other operating expenses (558) (1,416) (379) (2,154) 3.05 Income (loss) before financial income (loss) and taxes 264, , , , Financial income (loss), net (15,032) (30,214) (22,473) (44,426) Financial income 55,639 93,829 38, , Financial expenses (70,671) (124,043) (61,113) (166,181) 3.07 Income (loss) before income tax 249, , , , Income and social contribution taxes (81,355) (164,355) (37,327) (78,659) Current (21,307) (39,543) (4,169) (6,244) Deferred (60,048) (124,812) (33,158) (72,415) 3.09 Net income (loss) of continued operations 168, ,455 78, , Net Income (loss) for the period 168, ,455 78, , Attributed to the Parent company's partners 157, ,369 76, , Attributed to non-controlling partners 11,148 26,086 1,629 10, Earnings per share - (R$ / Shares) Basic earnings per share Common (ON) 1, , , Diluted earnings per share Common (ON) 1, , , Page 16 of 120

17 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Consolidated financial statements / Statement of Comprehensive Income (In thousands of Reais) Code of account Account description Current Quarter 04/01/2018 to 06/30/2018 Accumulated of the Current Year 01/01/2018 to 06/30/2018 Same quarter previous year 04/01/2017 to 06/30/2017 Accumulated of the Previous year 01/01/2017 to 06/30/ Net income for the period 168, ,455 78, , Other comprehensive income (161,279) (135,518) (15,521) 67, Derivatives - Cash flow hedge (231,947) (264,332) (23,516) (6,740) Income tax and social contribution 78,861 89,872 7,995 2, Fair Value Adjustment Investment Property (3) (1) Others 0 0 (1) 15, Assigned cost property, plant and equipment (8,190) 38, , Comprehensive income (loss) for the period 6, ,937 62, , Attributed to the Parent company's partners 3, ,013 62, , Attributed to non-controlling partners 2,984 17, ,110 Page 17 of 120

18 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Consolidated financial statements / Statement of cash flows - Indirect method (In thousands of Reais) Code of account Account description Accumulated of the current year Accumulated of the previus year 01/01/2018 to 06/30/ /01/2017 to 06/30/ Net cash from operations 166,702 (191,956) Cash from operations 395, , Net income (loss) before income and social contribution taxes 501, , Depreciation and amortization 40,878 37, Interest, exchange and monetary variation 5,755 2, Share-based compensation 97, , Share-based compensation 2,241 2, Variation in biological assets (265,027) (127,870) Provision (reversal) for inventory adjustments and losses 0 (496) Provision (reversal) of profit sharing and labor contingencies 12,811 11, Income Tax and Social Contribution Payments 0 1, Changes in assets and liabilities (229,247) (477,040) Trade accounts receivable 127,532 2, Inventories and biological assets 13,812 (27,668) Recoverable taxes (8,966) (12,968) Trade notes receivable (81) Financial Investments 86,299 (24,943) Other accounts receivable (11,982) (15,335) Trade payables (312,626) (293,128) Tax and Social Obligations (30,087) (14,701) Transactions with related parties Operations with derivatives (47,743) (43,809) Interest Paid (4,409) (4,276) Advances from clients 53,527 38, Other accounts payable 4,547 (2,004) Leases Payable (9,387) 25, Dividends received (50,779) (103,368) Income Tax and Social Contribution Payments (34,012) (3,282) Advances to suppliers (5,153) Net cash used in investment activities (63,150) (39,520) In property, plant and equipment (60,095) (36,309) In intangible assets (3,055) (3,211) 6.03 Net cash generated/(consumed) in financing activities (243,180) (383,428) Loans and financing obtained 458, , Loans and financing paid (425,892) (705,469) Sale (repurchase) of shares (76,113) Dividends payable (199,992) (14,222) 6.05 Increase (decrease) in cash and cash equivalents (139,628) (614,904) Opening balance of cash and cash equivalents 611, , Closing balance of cash and cash equivalents 471, ,836 Page 18 of 120

19 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Consolidated financial statements / Statement of changes in shareholders equity / DMPL - 01/01/2018 to 06/30/2018 (In thousands of Reais) Code of account Account description 5.01 Opening balances Paid-up capital Capital reserves, Options granted and Treasury shares Profit reserves Retained earnings (loss) Other comprehensive income Shareholders' equity Interest of noncontrolling shareholders Consolidated shareholders' equity 947,522 49, , ,110,732 2,513, ,628 2,701, Adjusted opening balances 947,522 49, , ,110,732 2,513, ,628 2,701, Capital transactions with partners 0 12,997 (86,868) 0 0 (73,871) 0 (73,871) Recognized options granted 0 2, , , Treasury shares acquired 0 (81,378) (81,378) 0 (81,378) Treasury shares sold 0 11, , , Goodwill on the sale of Treasury Shares 0 (6,631) (6,631) 0 (6,631) Goodwill on Sale of Shares 0 86,868 (86,868) Total comprehensive income ,827 (128,814) 184,013 17, , Net income for the period , ,369 26, , Other comprehensive income ,458 (128,814) (127,356) (8,162) (135,518) Adjustment of financial instruments (251,966) (251,966) (12,366) (264,332) Taxes on adjustments of financial instruments ,668 85,668 4,204 89,872 Realization of deemed cost of property, plant and equipment Depreciation ,407 (1,407) 0 0 Realization of deemed cost of property, plant and equipment Sales (52) Other (1) 0 (1) 0 (1) Prior years Adjustment ,943 38, , Internal changes in equity 0 0 (116,405) 0 0 (116,405) (10,809) (127,214) Proposed dividends 0 0 (116,405) 0 0 (116,405) 0 (116,405) Additional approved dividend over (10,809) (10,809) 5.07 Closing balances 947,522 62, , , ,918 2,506, ,743 2,702,679 Page 19 of 120

20 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Consolidated financial statements / Statement of changes in shareholders equity / DMPL - 01/01/2017 to 03/31/2017 (In thousands of Reais) Code of account Account description Paid-up capital Capital reserves, Options granted and Treasury shares Profit reserves Retained earnings (loss) Other comprehensive income Shareholders' equity Interest of noncontrolling shareholders Consolidated shareholders' equity 5.01 Opening balances 947,522 80, , ,129,785 2,451, ,851 2,628, Adjusted opening balances 947,522 80, , ,129,785 2,451, ,851 2,628, Capital transactions with partners 0 3, , , Recognized options granted 0 2, , , Treasury shares acquired 0 (20,002) (20,002) 0 (20,002) Treasury shares sold 0 22, , , Goodwill on the sale of Treasury Shares 0 (1,624) (1,624) 0 (1,624) 5.05 Total comprehensive income ,611 65, ,624 10, , Net income for the period , ,303 10, , Other comprehensive income ,308 65,013 68,321 (719) 67, Adjustment of financial instruments (5,650) (5,650) (1,089) (6,739) Taxes on adjustments of financial instruments ,920 1, ,290 Realization of deemed cost of property, plant and equipment Depreciation ,320 (2,320) 0 0 Realization of deemed cost of property, plant and equipment Sales (491) Realization of deemed cost of property, plant and equipment Subsidiaries ,953 15, , Other Prior years Adjustment ,601 55, , Internal changes in equity 0 0 (7,112) 0 0 (7,112) 0 (7,112) Proposed dividends 0 0 (7,112) 0 0 (7,112) 0 (7,112) 5.07 Closing balances 947,522 84, , ,611 1,194,798 2,666, ,963 2,854,629 Page 20 of 120

21 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Consolidated financial statements / Statement of added value (In thousands of Reais) Code of account Account description Accumulated of the current year Accumulated of the previus year 01/01/2018 to 06/30/ /01/2017 to 06/30/ Revenues 1,487, , Sale of goods, products and services 928, , Other income 535, , Other income 7,499 8, Variation of the fair value of biological assets 527, , Income from construction of own assets 23,466 17, Inputs acquired from third parties (754,690) (492,490) Cost of goods, goods and services sold (2,878) (8,485) Materials, energy, outsuorced services and other (193,953) (118,149) Loss/recovery of asset values Other (557,859) (366,353) Raw materials used (295,222) (254,912) Adjustment to fair value of biological assets (262,637) (111,441) 7.03 Gross added value 732, , Retentions (40,878) (37,719) Depreciation, amortization and depletion (40,878) (37,719) 7.05 Net added value produced 691, , Added value received as transfer 104, , Financial income 95, , Other 8,753 6, Total added value payable 796, , Distribution of added value 796, , Personnel 114,704 91, Direct remuneration 68,832 54, Benefits 40,165 33, F.G.T.S. 5,707 4, Taxes, duties and contributions 170, , Federal 169, , State 1,392 18, Municipal Loan capital remuneration 173, , Interest 145, , Rentals 27,755 13, Remuneration of own capital 337, , Retained Earnings/Loss for the period 311, , Dividends 26,086 10,831 Page 21 of 120

22 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 MESSAGE FROM MANAGEMENT Operational Summary and Financial Highlights of the Quarter The results for the second quarter of 2018 once again reflect the consolidation of our current strategy, one pillar of which concentrates on improving the efficiency of our business. We are attaining this new level of results mainly due to the repositioning of our production units, the maturation of our properties, the optimized utilization of our assets (intensification of second crops) and the reinforcement of our machinery base ( fire power of our planting and harvest operations), enabling planting during the best time of year and faster harvesting. Figure 1 Pillars of Company's Current Strategy (Phase 3) Therefore, from the operational standpoint, in the case of soybean, whose harvest was completed in April, we attained a yield of 3,756kg/ha, 14.4% higher than in the 2016/17 crop year, 30% higher than the five-year average to the 2015/16 crop year and 11% higher than the Brazilian average, based on CONAB data for July. In the case of cotton, with 47.7% of the crop already harvested (as of August 3), we estimate a yield of 1,787 kg/ha (average cotton lint from first and second crop), which is in line with the record yield reported last crop year, 18% higher than the five-year average to 2015/16 and 6.9% higher than the Brazilian average, also based on the latest CONAB data. The financial results reflect this significant operational improvement and are setting new records for the second straight year. Adjusted EBITDA in 2Q18 and 1S18 were a record R$159 million and R$309 million, respectively. The growth in adjusted EBITDA in both periods was driven basically by the higher gross income from soybean and cotton, supported by a combination of high yields and expansion in planted area. Net Income for 2Q18 was R$168 million, bringing Net Income in 1S18 to R$337 million. Net Income for the first half already incorporates the results expected from the cotton and corn crops, which is still in the harvest phase, due to the calculation of biological assets. Page 22 of 120

23 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Table 1 Financial Highlights (R$ Thousand) 1S17 1S18 AH 2Q17 2Q18 AH Net revenue 692, , % 343, , % Change in Fair Value of Biol. Assets 239, , % 129, , % Gross income 354, , % 169, , % Gross margin 51.2% 69.4% 18.2 p.p 49.4% 64.9% 15.5 p.p Operating income 285, , % 137, , % Operating margin 41.2% 59.8% 18.7 p.p 40.2% 57.0% 16.8 p.p Net profit 162, ,1% 78, % Net Margin 23.4% 38.0% 14.6 p.p 22.8% 36.2% 13.4 p.p Adjusted EBITDA (1) 197, , % 73, , % Adjusted EBITDA Margin 28.5% 34.8% 6.3 p.p 21.5% 34.2% 12.7 p.p Adjusted Net debt (2) 1,008,985 1,093, % 1,008,985 1,093, % (1) Excludes the effects from Biological Assets, since they are noncash, and excluding the Write-off of Property, Plant and Equipment. (2) Adjustes by gain and losses with derivatives Our leverage ratio fell sharply in the period, given the cash generation, from 2.6 times (1S17) to 1.3 times (1S18), based on the ratio of Net Debt to Adjusted EBITDA. Truck Drivers Strike The strike and associated developments (notably the discussion on minimum freight rates) affected the Company, mainly with regard to the pace of soybean exports. There were no exports during the strike, which were resumed gradually in the ensuing weeks, but have yet to return to their normal pace. However, our company s good storage capacity avoided further problems. In addition, according to the Hedge Table in this document (Table 27), this year s soybean crop is already 80% sold, with the price negotiated at farm gate, therefore already incorporating freight expenses. These sales were made before the strike. We also faced delays in the delivery of certain inputs for the following crop year in a few of our units. However, we have managed to resolve most of these delays with our suppliers and, because we buy inputs with a reasonable lead-time, we do not expect any impact that adversely affects the good progress of planting operations. Outlook On July 12, we published a Material Fact notice informing our first planting intentions for the 2018/19 crop year, in which we expect to reach 455,000 hectares, an expansion of 12.5% on the planted area of the previous crop year. This expansion in planted area is basically due to the incorporation of the Pantanal Farm, a 100%-leased unit located on the border of the states of Mato Grosso do Sul and Goiás, whose lease was announced to the market on May 28. Another highlight is the expansion in the cotton planted area, which should reach 121,000 hectares, up 27.2% on this crop's planted area in 2017/18. Table 2 Projected Planted Area for 2018/19 Crop Year Planted Area Planted Area Share Mix 2017/18 (1) 2018/ /19 % ha % Cotton 95, , % 27.2% Cotton 1 st crop 57,832 70, % 21.8% Cotton 2 nd crop 37,292 50, % 35.5% Soybean (Commercial + Seeds) 230, , % 7.0% Corn 2 nd crop 76,931 86, % 12.0% Others crops (2) 2,228 1, % -33.2% Total Area 404, , % 12.5% (1) Fatores climáticos poderão afetar a projeção de área plantada. (2) Corn seeds, wheat. Page 23 of 120

24 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Awards, Events and other To date, virtually all inputs for the new crop year have been acquired, at an increase of around 5% in U.S. dollar compared to 2017/18 crop year. The higher costs in Brazilian real will depend on the exchange rate in the periods in which the inputs are settled. However, bear in mind that as the payments are made, we simultaneously will contract currency hedges for revenue, in accordance with our Hedge Policy. In addition, the recent depreciation in the Brazilian real against the U.S. dollar benefits margins in the coming crop year. Other Significant Events during the quarter Farm Day On July 12, at the Pamplona Farm, we held the Farm Day 2018, our annual event aimed to strengthen relations with the financial market, in which the Company s executive officers could interact with investors, analysts and bank credit teams. During the day, visitors toured the cotton field, the cotton processing unit and facilities and the cotton grading room. The event was concluded with a speech by the executive officers, who presented the main indicators and prospects for the business. GRI. In June, we launched our second Sustainability Report in accordance with framework of the Global Reporting Initiative (GRI), for The Report presents the company's significant actions and indicators for each material topic identified as a priority by the consultation of stakeholders conducted in 2017, and is available on the Company website and on the Investor Relations website. Employee Satisfaction Survey. In June, we also reported the results of our Organizational Climate Survey (PENSA survey), which is conducted every two years. The survey registered a record satisfaction rate of 80.6%, which is the fruit of the series of initiatives we have adopted internally to attain higher employee engagement. Transparency Trophy. We were honored for the second consecutive year with the Trophy Transparency -FIPECAFI- SERASA EXPERIAN, considered the "Oscar of Accounting". As disclosed by ANEFAC, the criteria for reaching the winners are: "the quality and degree of the information contained in the statements and explanatory notes, the transparency of the information provided, the quality and consistency of the management report and adherence to accounting principles, exercise of 2017 ". Release in 1 page. For a quicker overview of the Release, we are opening the "Release on 1 Page" section on the second page of the document, where we enter the key figures in the report. Page 24 of 120

25 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 MARKET OVERVIEW Figure 2 Change in Commodity Prices, January-July Cotton - ICE: 113 Soybean - CBOT: 90 Corn - CBOT:103 Oil - Nymex: /01/18 1Q18 01/04/18 2Q18 01/07/18 Source: Bloomberg - (01/01/2018 = Base 100) COTTON During 2018, cotton spot prices on ICE US have risen 13% in relation to the initial days of the year and 25% compared to the same period of the previous year. Figure 3 Cotton Price in International Market vs. Brazil ICE US$ c/lb Esalq R$ c/lb U$ C/LB R$ C/LB /01/171Q1701/04/17 2Q17 01/07/173Q17 01/10/174Q17 01/01/181Q18 01/04/182Q1801/07/18 Source: Bloomberg Page 25 of 120

26 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Weekly U.S. sales have been setting new records, attesting to the strong demand for cotton since the 2011/12 cycle. According to USDA forecasts, world consumption in the current cycle should approach the mark of 127 million bales, which would represent a new record, surpassing the record of 123 million bales set in the 2007/08 cycle Figure 4 World Cotton Consumption Cotton - World Production Cotton - World Consumption , Million of Bales / / / / / /18* 2018/19* Source: USDA *Estimated With regard to China, the world s largest cotton consumer, the USDA s supply and demand report for July presented revisions to historical data for the country s consumption and ending stocks, which contributed to the optimistic scenario, as well as downward revisions of world cotton fiber stocks. The following chart presents a comparison of the figures before and after the USDA s revisions: Figure 5 World Cotton Ending Stocks 120 Final Inventory (June Report - Before correction) Final Inventory (July Report - After correction) Million of bales / / / / / / /18* 2017/18* 2018/19* 2018/19* Source: USDA *Estimated Page 26 of 120

27 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 The revisions of historical data for world ending stocks projects a deficit of approximately 5.2 million bales for the global market in the current cycle. 0,0 Figure 6 Correction of World Cotton Ending Stocks 2014/ / / /18* 2018/19* -1,0-2,0-1.5 Million of bales -3, ,0-5, ,0 Source: USDA *Estimated The aforementioned corrections to world ending stocks adjusted the stock-to-use ratio to its lowest levels of the past five years. 120% Figure 7 Stock-to-Use Ratio World Cotton - Final Inventorie (July Report - Before Correction) Cotton - Final Inventorie (July Report - Corrected) 100% 80% 60% 100.3% 98.2% 86.9% 82.5% 76.4% 72.8% 73.0% 69.5% 66.2% 61.3% 40% 20% 0% 2014/ / / /18* 2018/19* Crop Year Source: USDA * Estimated In the United States, the state of Texas, which is the country s largest cotton producer, is suffering abnormal drought conditions, having spent the entire crop planting and development period under adverse conditions. According to USDA s weekly report on growing conditions, the percentage of crops presenting good to excellent conditions in the United States is the lowest of the last seven years, at levels near those reported in 2011, when the cotton abandonment rate reached a record high in the country. Page 27 of 120

28 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Figure 8 NOAA/NESDIS/NCEI Data Valid: July 31, 2018 / Author: Chris Fenimore D2 - Severe Drought D3 - Extreme Drought D0 Abnormally Dry D1 - Moderate Drought D4 - Exceptional Drought Figure 9 United States Good and Excellent Field Conditions 70% % 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% WEEK Source: USDA Given the adverse field conditions, the USDA s supply and demand report for July revised the estimated harvested area for the following crop year in the United States anticipating an abandonment rate of 22% for the country s cotton fields. Page 28 of 120

29 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 25% Figure 10 Cotton Abandonment Rate USDA 22% 20% 17% 15% % 12% 10% 5% 0% JUN /18 JUN /19* JUL /19* Source: USDA * Estimated Due to the higher abandonment in the United States, the country s output is expected to decrease from previous crop year. Cotton production in the United States ended the 2017/18 crop year with estimated production of 20.9 million bales and, according to the initial USDA estimates for the 2018/19 cycle, the first production estimate was 19.5 million bales. After the revision in July, this figure now stands at 18.5 million bales, which represent production 5% lower than the first estimate and approximately 10% lower than in the previous crop year. SOYBEAN Soybean prices for spot contracts on the Chicago Board of Trade fluctuated significantly during the second quarter of With an external scenario marked by uncertainties typical to the commodities market, soybean prices in the international market fluctuated between US$/bushel and around 8.50 US$/bushel. Figure 11 Soybean Price in International Market vs. Brazil CBOT US$/bu Esalq R$/sc US$ /bushel R$/sc /01/171Q1701/04/17 2Q1701/07/17 3Q1701/10/17 4Q1701/01/181Q1801/04/182Q18 01/07/18 Source: Bloomberg Page 29 of 120

30 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 In an external scenario marked by greater uncertainties, with China and the United States seeking to resolve the differences in their trade balances, for which the United States maintains a deficit, the countries began to implement a series of additional fees on the goods imported between each other, which pushed soybean prices to the lowest levels of recent months. Despite lower prices in Chicago, the combination of strong and consistent demand for Brazilian soybean, as shown by the record exports during 2018, high premiums at the port and a weaker local currency in the past year created the conditions for prices in Brazilian real remaining stable in recent months. Figure 12 Soybean Premium (Paranaguá) China, the world's main soybean importer and consumer, has been consistently increasing its imports from Brazil in recent years, according to SECEX data. Figure 13 Brazil Soybean Exports to China Page 30 of 120

31 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 For the 2018/19 cycle, according to USDA data, China should tend to increase its soybean consumption, which requires once again that Brazil become the country responsible for meeting this growing demand Figure 14 China Soybean Consumption Thd Tons ,070 76,180 80,600 87,200 95, , , , Crop-Year Source: USDA * Estimated/Projection Regarding the 2018/19 crop year in the United States, the USDA s monthly supply and demand report for July indicates initially lower production in the country. With volume estimated at around million tons, production should be 2% lower than the million tons in the previous cycle. The expectation of lower production should help keep prices stable for Brazilian producers and pressure the supply of soybean, supporting for the coming months a scenario of price volatility based on the evolution of the U.S. crop. CORN Figure 15 Corn Prices in International Market vs. Brazil 4,5 CBOT - US$/bu Esalq - R$/sc ,0 40 US$/Bushel 3, R$/Sc 25 3, /01/171Q17 01/04/172Q17 01/07/17 3Q17 01/10/174Q1701/01/18 1Q1801/04/18 2Q1801/07/18 Source: ESALQ-USP, CBOT/CMA Page 31 of 120

32 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Spot prices for the corn on the Chicago Board of Trade during 2018 fluctuated between 4.00 US$/bushel and 3.50 US$/bushel. With regard to Brazil s domestic market, according to the CEPEA ESALQ data, corn prices remained at levels above R$/bag during the second quarter, up 30% on average compared to the same period of the previous year. The combination of a contraction in planted area for the first corn crop in Brazil and a crop shortfall in regions producing a second corn crop in the country s South, led mainly by the state of Paraná, are factors that helped to keep prices stable in the domestic market during Figure 16 Evolution in Corn Planted Area, Brazil With total production estimated to be 15% lower than in the 2016/17 cycle, Brazil s domestic market will depend increasingly on its export program in 2018 to guarantee volumes for consumption in the domestic market. Million of Tons Figure 17 Paraná Corn Production, Second Crop Crop 14/15 Crop 15/16 Crop 16/17 Crop 17/18 - April Report 10.0 Crop 17/18 - May Report Crop 17/18 - June Report Crop 17/18 - July Report Source: DERAL - PR In the scenario of successive contractions in planted area for the corn first crop in Brazil, the pressure on the volume available as carryover stocks for the consumer market to be absorbed in the first quarter should help to keep prices at their current higher levels. Page 32 of 120

33 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Figure 18 Brazil Corn Production At the global level, consumption in the corn market should exceed supply for the second straight year. Figure 19 World Corn Production and Consumption Million of Tons , Production Consumption 1,076 1, ,066 1,034 1,054 1, / / / / / /19 Crop Source: USDA According to USDA data, the deficit should surpass 30 million tons in the 2018/19 cycle. Figure 20 World Corn, Production and Consumption Gap In the United States, the USDA s supply and demand report for July estimates corn production of approximately 361 million tons, down around 2.6% from the previous cycle. Combined with the weather uncertainty and its potential impacts on the evolution of the crop and the consolidation of the aforementioned figures, the scenario calling for a deficit in the corn production and consumption balance for the second straight year should support corn prices in Chicago. Page 33 of 120

34 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 OPERATING PERFORMANCE 2017/18 CROP YEAR The second quarter of 2018 was marked by the end of the soybean harvest and the start of the first-crop cotton harvest. The harvest of the second crops of cotton and corn started in July. SOYBEAN The total soybean planted area of 230,164 hectares in the current crop year already has been completely harvested and registered a record yield of 3,756 kg/ha, which is 11.8% higher than initially projected. COTTON 1 ST CROP Harvesting started on May 30 and, as of August 3, 62.27% of the 57,832 hectares had been harvested. The areas are in very good conditions and the start of the harvest was in line with our estimates. Our current cotton lint yield estimate is 1,891 kg/ha, an increase of 11.3% from the original forecast. Figure 21 Cotton Field at Paladino Farm in Bahia Page 34 of 120

35 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 COTTON 2 nd CROP Harvesting started on July 4 and, as of August 3, we had harvested 25.06% of the 37,292 hectares cultivated by the Company. The fields being harvested have confirmed the expectation of excellent production potential. Given the percentage of harvested area to date, we maintain our estimated cotton lint yield of 1,628 kg/ha. Figure 22 Cotton 2nd Crop Being Harvested at Planalto Farm in Mato Grosso do Sul CORN 2 ND CROP On May 24, we began harvesting of the corn second-crop. As of August 2, we had harvested 63.5% of the 76,931 hectares. Due to the premature end of precipitation in the closing period of the cycle in Maranhão state and eastern Mato Grosso state (Charts 22 and 23), we estimate a production yield of 5,389 kg/ha, down 22.0% from our initial forecast. PRECIPITAÇÃO (mm) Figure 23 Precipitation Distribution in Maranhão, last two crop years End of Rains 04/ End of Rains 04/ / /18 Historical Average Page 35 of 120

36 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Figure 24 Precipitation Distribution in Eastern Mato Grosso PRECIPITAÇÃO (mm) End of Rains 04/ End of Rains 04/ / /18 Historical Average The distribution of precipitation is the most important weather factor for ensuring the maximum potential of crops. YIELD Table 3 Initial and Updated Yield Estimate, 2017/18 Crop Year Yield (kg/ha) Initial Budget Current Forecast 2017/ /18 % Cotton Lint 1 st crop 1,699 1, Cotton Lint 2 nd crop 1,628 1,628 - Cotton Seed 2,142 2, Soybean 3,360 3, Corn 2 nd crop 6,912 5, PLANTED AREA The following table presents the latest data on planted area for the 2017/18 crop year and a comparison with the previous crop year. Table 4 Planted Area by Crop Planted Area Planted Area Share Crop Mix 2016/ /18 (1) 2017/18 % ha % Cotton 87,440 95, Cotton 1 st crop 58,886 57, Cotton 2 nd crop 28,554 37, Soybean (Commercial + Seeds) 230, , Corn 2 nd crop 71,790 76, Others crops (2) 3,564 2, Total Area 392, , (1) Weather factors may affect the planted area forecast. (2) Wheat, corn 1 st crop, corn seed and sugarcane. Table 5 Planted Area by Land Ownership Planted Area Planted Area Share Area Mix 2016/ /18 (1) 2017/18 % ha % 1 st Crop Area 291, , Owned Area 118, , Leased Area 97, , Joint Ventures Area (2) 39,523 38, LandCo Area 35,110 34, nd Crop Area 101, , Owned Area 58,723 60, Leased Area 24,130 36, Joint Ventures Area (2) 8,511 7, LandCo Area 10,443 11, Total Area 392, , (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. Page 36 of 120

37 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 CURRENT POSITION OF OUR LANDBANK AREAS UNDER DEVELOPMENT PROCESS We planted 2,766 hectares on the Parceiro Farm, in line with our planning. During the 2017/18 crop year we will conclude clearing and soil correction activities on 1,200 hectares at the Parnaguá Farm to prepare it for planting in the 2018/19 crop year. Table 6 Land Development SLC Agricola Farms Areas in process of transformation Areas in process of licensing (ha) (ha) Palmares Parnaíba - 1,464 Parnaguá 1,200 3,426 Parceiro - 6,698 Sub Total 1,200 12,189 SLC LandCo Farms Areas in process of transformation Areas in process of licensing (ha) (ha) Parnaíba (1) - 4,749 Piratini 9,993 - Parceiro (1) 2,645 - Sub Total 12,638 4,749 Total 13,838 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. LAND PORTFOLIO On August 14 we owned the following property portfolio: Table 7 Property portfolio 2017/18 Crop Areas (ha) Owned (1) SLC LandCo (2) Leased Joint Total Under Control Ventures Planted (3) Fazenda Estado ha Pamplona GO 17,911 3,857 21,768 19,144 Planalto (7) MS 15,006 1,635 16,641 21,002 Planorte MT 23,454 23,454 31,177 Paiaguás MT 28,124 15,810 43,934 67,174 Perdizes (5) MT 28,846 13,276 42,122 23,718 Pioneira (4) MT 19,462 19,462 26,497 Panorama BA 10,373 14,234 24,626 21,751 Paladino (5) BA 19,417 19,417 19,417 Piratini BA 25,356 25,356 7,436 Palmares BA 16, ,145 33,171 24,827 Parnaíba (8) MA 31,398 10,200 27,139 68,737 65,916 Planeste MA 22,785 16,632 39,417 54,495 Parceiro BA 27,556 3,680 11,088 42,324 13,585 Paineira (6) PI 12,892 12,892 - Parnaguá PI 23,736 23,736 8,308 Total - 225,118 86, ,540 38, , ,446 (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. Page 37 of 120

38 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 The following chart shows our planted area broken down by type of property: Figure 25 Breakdown of Planted Area by Property Type, 2017/18 Crop Year CURRENT MATURITY OF OUR PLANTED LAND PORTFOLIO Figure 26 Maturity of Our Land Portfolio, Planted Area 99% 1% Mature Area Immature Area (less than 3 years of harvesting) MACHINERY AND STORAGE CAPACITY The following table presents the machinery owned by the Company and its current storage capacity: Table 8 Machinery and Storage Capacity Machinery Quantity Tractors 190 Grain combines 182 Cotton pickers 74 Planters 197 Self-propelled sprayers 144 Storage Capacity Grains Cotton Tons % Production (1) 50% 83% (1) Estimate based on the estimated planted area and yield for 2017/18. Page 38 of 120

39 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 FINANCIAL PERFORMANCE EBITDA Table 9 EBITDA Conciliation (R$ thousand) 1S17 1S18 AH 2Q17 2Q18 AH Net revenue 692, , % 343, , % Change in Fair Value of Biological Assets 239, , % 129, , % (-) Cost of Goods and/or Services Sold (577,622) (799,483) 38.4% (303,451) (451,239) 48.7% Cost of Goods (466,181) (536,846) 15.2% (262,805) (295,167) 12.3% Realization of the Fair Value of Biological Assets (111,441) (262,637) 135.7% (40,646) (156,072) 284.0% Gross Income 354, , % 169, , % (-) Sales Expenses (29,218) (41,324) 41.4% (13,101) (17,559) 34.0% (-) General and administrative expenses (32,497) (37,429) 15.2% (17,114) (20,003) 16.9% General and administrative (21,737) (24,698) 13.6% (10,691) (13,135) 22.9% Participations Results (10,760) (12,731) 18.3% (6,423) (6,868) 6.9% (-) Administrative Fees (7,267) (9,146) 25.9% (2,288) (2,408) 5.2% (-) Other operating revenues (loss) (227) 4,036 n.m. 1,019 3, % (=) Income from Activity 285, , % 137, , % (+) Depreciation and amortization 37,719 40, % 24,486 25, % EBITDA 322, , % 162, , % (-) Change in Fair Value of Biological Assets (note 24) (239,311) (527,665) 120.5% (129,921) (288,258) 121.9% (+) Realization of the Fair Value of Biol. Assets (note 24) 111, , % 40, , % (+) Write-off of fixed assets 2,185 1, % % Adjusted EBITDA (1) 197, , % 73, , % Adjusted EBITDA Margin (2) 28.5% 34.8% 6.3 p.p 21.5% 34.2% 12.7 p.p (1) Excludes the effects from Biological Assets, since they are noncash. (2) Excluding write-off of Property, Plant and Equipment. *Note: Note in the Quarterly Information (ITR) Adjusted EBITDA set a new record for the second quarter and first half of the year. In 2Q18, Adjusted EBITDA came to R$158,788 thousand, with margin of 34.2%, representing expansion of 12.7 percentage points from adjusted EBITDA margin in 2Q17 (21.5%). In 1S18, Adjusted EBITDA grew 56.8% to R$309,290 thousand, with margin of 34.8%, representing expansion of 6.3 percentage points from 28.5% in 1S17. Adjusted EBITDA growth in both periods was basically driven by the growth in Gross Income from soybean and cotton (excluding biological assets) due to the record-high yields attained. The soybean yield in the 2017/18 crop year was 11.8% higher than in the 2016/17 crop year, while the cotton yield in the 2016/17 crop year (cotton invoiced in the first half of the year comes from crop harvested in the prior year) was 42.4% higher than in the 2015/16 crop year. The following chart shows the composition of the variation in Adjusted EBITDA in the quarter: Figure 27 Adjusted EBITDA Reconciliation, 2Q18 vs. 2Q17 16,874 1,443 (3,009) (4,458) 2,107 1,329 70, ,788 R$ mil , Adjusted EBITDA 2Q17 Gross Profit Soybean (without BA) Gross Profit - Cotton (without BA) Gross Profit - Other crops (without BA) General and Admnistrative Expenses Sales Expenses Other operating income Depreciation and Non current assets Adjusted EBITDA 2Q18 Page 39 of 120

40 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 NET REVENUE Net Revenue in 2Q18 advanced 35.4% on the year-ago period. This Net Revenue growth is explained mainly by the revenue from the soybean crop, which grew R$146 million in the comparison period, supported by 51.6% growth in volume invoiced. In 1S18, Net Revenue grew 28.1%, led by the cotton and soybean crops. Net revenue from cotton increased 57.4% in 1S17, reflecting the 50.4% higher volume invoiced, which is explained by the record yield in the 2016/17 crop year, combined with the 9% increase in unit price. The soybean volume invoiced increased 25.3% from 1S17, representing revenue growth of 31.0%, which also was due to the higher yield, as mentioned above. Table 10 Net Revenue (R$ Thousand) 1S17 1S18 AH 2Q17 2Q18 AH Net Revenue 692, , % 343, , % Cotton lint invoiced 185, , % 104, , % Cotton seed invoiced 6,755 14, % 1,967 2, % Soybean invoiced 445, , % 226, , % Corn invoiced 15,172 9, % 7,233 2, % Others (invoiced) 2,019 6, % 1,327 5, % Hedge income 37,089 (19,407) n.m. 1,803 (27,709) n.m. Table 11 Volume Invoiced (Tons) 1S17 1S18 AH 2Q17 2Q18 AH Volume Invoiced 550, , % 282, , % Cotton lint 33,705 50, % 18,215 17, % Cotton seed 9,889 32, % 3,045 7, % Soybean 463, , % 234, , % Corn 35,574 25, % 22,127 6, % Other 7,534 7, % 4,631 4, % Table 12 Variation in Fair Value of Biological Assets (R$ Thousand) 1S17 1S18 AH 2Q17 2Q18 AH Change in Fair Value of Biological Assets 239, , % 129, , % Cotton lint 122, , % 122, , % Cotton seed 18,333 15, % 18,333 15, % Soybean 105, , % (1,419) 46,946 n.m. Corn (9,463) 11,772 n.m. (9,463) 12,101 n.m. Other 2,942 7, % 164 (505) n.m. The variation in the fair value of biological assets is calculated by multiplying the estimated yield 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 121.9% compared to 2Q17, amounting to R$288.2 million. In 1S18, this increase was 120.5%, to R$527.6 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. Page 40 of 120

41 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 COST OF GOODS SOLD Cost of goods sold increased 12.3% in 2Q18 and 15.2% in 1S18 compared to 2Q17 and 1S17, respectively. The increase in cost of goods sold is mainly due to the higher soybean and cotton volume invoiced. Despite the increase in cost of goods sold, the unit cost of our main crops (cotton and soybean) decreased significantly, due to the higher yield obtained, as presented in the section Analysis of Margins by Crop. Table 13 Cost of Goods Sold (R$ Thousand) 1S17 1S18 AH 2Q17 2Q18 AH Cost of Goods Sold (466,181) (536,846) 15.2% (262,805) (295,167) 12.3% Cotton lint (136,278) (153,597) 12.7% (74,297) (51,574) -30.6% Cotton seed (6,381) (11,780) 84.6% (1,570) (2,097) 33.6% Soybean (303,681) (355,946) 17.2% (176,631) (234,565) 32.8% Corn (9,872) (7,139) -27.7% (6,527) (2,149) -67.1% Other (9,969) (8,384) -15.9% (3,780) (4,782) 26.5% Table 14 Realization of the Fair Value of Biological Assets (R$ Thousand) 1S17 1S18 AH 2Q17 2Q18 AH Realiz.of the Fair Value of Biol.l Assets (111,441) (262,637) 135.7% (40,646) (156,072) 284.0% Cotton lint (11,455) (64,165) 460.1% (5,380) (21,082) 291.9% Cotton seed (7) (5,494) n.m. (659) (1,144) 73.6% Soybean (99,158) (188,974) 90.6% (34,251) (130,289) 280.4% Corn 1,224 (436) n.m. 1, % Other (2,045) (3,568) 74.5% (2,045) (3,568) 74.5% 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 The cotton invoiced in 1S18 was produced in the 2016/17 crop year. In 1S18 and 2Q18, gross margin increased compared to the same period last year. In the quarter, margin increased 135.7%, notably due to the significant reduction in unit cost supported by the better yield (up 42.4% from the 2015/16 crop year). In 1S18, the higher margin is due to the better prices, record yield and consequent reduction in unit cost, closing the period 177.5% higher than in 1S17. Table 15 Cotton Lint and Cottonseed Gross Margin Cotton Invoiced 1S17 1S18 AH 2Q17 2Q18 AH Cotton Lint Invoiced Volume Invoiced Ton 33,705 50, % 18,215 17, % Net Revenue R$ thousand 185, , % 104, , % Result of currency hedge R$ thousand (22,016) (23,980) 8.9% (16,061) (27,677) 72.3% Net income adj. for the R$ thousand result of currency hedging 163, , % 87,975 82, % Unit Price R$ thd/ton 4, % 4,830 4, % Cost Total R$ thousand (136,278) (153,597) 12.7% (74,297) (51,574) -30.6% Unit Cost R$ thd/ton (4,043) (3,031) -25.0% (4,079) (2,970) -27.2% Unitary Margin R$ thd/ton 817 2, % 751 1, % Cotton Seed Invoiced Volume Invoiced Ton 9,889 32, % 3,045 7, % Net Revenue R$ thousand 6,755 14, % 1,967 2, % Unit Price R$ thd/ton % % Cost Total R$ thousand (6,381) (11,780) 84.6% (1,570) (2,097) 33.6% Unit Cost R$ thd/ton (645) (358) -44.5% (516) (299) -42.1% Unitary Margin R$ thd/ton % % Page 41 of 120

42 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 SOYBEAN The soybean invoiced in 2Q18 was produced in the 2017/18 crop year. Soybean unit margin in 2Q18 increased 35.2% from 2Q17. The main factor contributing to the higher margin was the reduction in unit cost, due to the higher yield of the current crop year compared to the previous year, combined with the stability in costs per hectare between crop years. In 1S18, margin decreased 7.4%, since the reduction in invoice 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 16 Soybean Gross Margin Soybeans Invoiced 1S17 1S18 AH 2Q17 2Q18 AH Volume Invoiced Ton 463, , % 234, , % Net Revenue R$ thousand 445, , % 226, , % Result of currency hedge R$ thousand 58,562 4, % 17,321 (32) n.m. Net income adj. for the R$ thousand result of currency hedging 504, , % 243, , % Unit Price R$ thd/ton 1,088 1, % 1,040 1, % Cost Total R$ thousand (303,681) (355,946) 17.2% (176,631) (234,565) 32.8% Unit Cost R$ thd/ton (655) (613) -6.4% (753) (660) -12.4% Unitary Margin R$ thd/ton % % CORN The corn invoiced in 2Q18 also is produced in the 2017/18 crop year. Unit margin for corn was slightly negative in the quarter, due to the 14.0% reduction in unit price combined with the 4.7% increase in unit cost, which is explained by the lower yield in relation to the previous crop year. In 1S18, margin decreased 45.7%, due to the 17.4% reduction in unit price, which was partially offset by the 0.7% reduction in unit cost. Table 17 Corn Gross Margin Corn Invoiced 1S17 1S18 AH 2Q17 2Q18 AH Volume Invoiced Ton 35,574 25, % 22,127 6, % Net Revenue R$ thousand 15,172 9, % 7,233 2, % Result of currency hedge R$ thousand 543 (108) n.m ,0% Net income adj. for the result of currency R$ thousand hedging 15,715 9, % 7,776 2, % Unit Price R$ thd/ton % % Cost Total R$ thousand (9,872) (7,139) -27.7% (6,527) (2,149) -67.1% Unit Cost R$ thd/ton (278) (276) -0.7% (295) (309) 4.7% Unitary Margin R$ thd/ton % 56 (7) n.m. GROSS INCOME Table 18 Gross Income (R$ Thousand) 1S17 1S18 AH 2Q17 2Q18 AH Gross Profit 354, , % 169, , % Cotton lint 27, , % 13,678 30, % Cotton seed 374 2, % % Soybean 200, , % 67, , % Corn 5,843 2, % 1,249 (50) n.m. Others (7,950) (1,575) -80.2% (2,453) 457 n.m. - Biological Assets 127, , % 89, , % Gross Income in 2Q18 amounted to R$301,427 thousand, with gross margin of 64.9%, an increase of 15.5 percentage points from 49.4% in 2Q17. Excluding the effects from Biological Assets, Gross Income grew by 111.0%. Page 42 of 120

43 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 In 1S18, Gross Income increased 73.8% from 1S17, with margin of 69.4%, up 18.2 percentage points in relation to the same period last year. Excluding the apportionment of Biological Assets, Gross Income advanced 54.9%. The main crops that contributed to Gross Revenue growth in the quarter and half year were soybean and cotton, given the expansion in planted area and higher yields. In the quarter, the highlight was soybean, with Gross Income of R$138,053 thousand, up R$70,721 thousand from 2Q17, due to the higher volume invoiced in the period, slightly higher prices and lower unit cost. In 1S18, the highlight was the cotton crop, which contributed Gross Income of R$114,890 thousand, up R$87,345 thousand, due to the higher volume and invoice prices and lower unit cost. Soybean recorded Gross Income of R$232,660 thousand, up R$31,914 thousand, due to the higher volume invoiced and lower unit cost. PRODUCTION COST The following chart presents a breakdown of our average production cost in the 2017/18 crop year: Figure 28 Breakdown of Production Cost, 2017/18 Crop Year Table 19 Breakdown of Production Cost by Crop (%) % Cotton Soybean Corn Average 2017/18 Average 2016/17 Variable Costs Seeds Fertilizers Defensives Air Spraying Fuel and Lubrificants Labor Ginning Maintenance of Machines and Instruments Others Fixed Costs Labor Depreciation and amortizations Leasing Others Page 43 of 120

44 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Our estimates of total production cost per hectare for the 2017/18 crop year are presented below: Table 20 Production Cost in R$/hectare A B C (1) Total ( R$/ha) (2) Budget 2016/17 Achieved 2016/17 Budget 2017/18 C/B C/A Cotton 1 st crop 7,155 7,138 6, % -4.8% Cotton 2 nd crop 6,164 5,838 6, % -2.3% Soybean 2,251 2,229 2, % 2.7% Corn 2 nd crop 1,781 1,765 1, % 1.9% Average total cost (1) 3,203 3,161 3, % -0.6% (1) According to the position on September 30, 2017 (budget amounts). Figures may suffer changes by the end of cotton processing and the sale of grains. (2) Total average cost weighted by area. Total average production cost per hectare estimated for the 2017/18 crop year was stable in relation to the budget for the 2016/17 crop year, despite inflation in the comparison period. SELLING EXPENSES Selling expenses increased 34.0% and 41.4% in 1Q18 and 1S18, respectively, compared to the same period last year. The main factors contributing to this variation were the higher volume of cotton invoiced and the increase in the freight price and in export expenses (annual increase, not yet reflecting the new minimum freight prices). Despite the increase in selling expenses compared to the same period last year, as a ratio of Net Revenue they remained stable. Table 21 Selling Expenses (R$ thousand) 1S17 1S18 AH 2Q17 2Q18 AH Freight 9,855 14, % 4,608 6, % Storage 11,324 14, % 5,042 6, % Commissions 3,050 5, % 1,763 2, % - Classification of Goods % % Export Expenses 4,560 7, % 1,387 2, % - Others % % Total 29,218 41, % 13,101 17, % % Net Revenue 4.2% 4.7% 0.5 p.p 3.8% 3.8% - GENERAL AND ADMINISTRATIVE EXPENSES In 2Q17, General and Administrative Expenses increased 22.9% from 2Q17. In 1S18, they increased by 13.6%. 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. Tax, Labor, Environmental Contingencies: lower provisioning for contingencies. General and Administrative Expenses corresponded to 2.8% of Net Revenue in 1Q18 and 1S18, which represents a reduction in percentage points from the same period last year. Page 44 of 120

45 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Table 22 Administrative Expenses (R$ Thousand) 1S17 1S18 AH 2Q17 2Q18 AH Expenses with personnel 11,367 13, % 5,819 6, % Fees 1,841 2, % 642 1, % Depreciations and amortizations % % Expenses with travels % % Software maintenance 1,916 2, % 1, % Marketing/Advertisement 1,081 1, % 397 1, % Expenses with Communications 1,098 1, % % Rentals % % Labor, Tax and Environmental Contingencies % 52 (56) n.m. Electricity % % Taxes and other fees % % Contribuitions and donations % % Other 1, % 1, % Subtotal 21,737 24, % 10,691 13, % % Net Revenue 3.1% 2.8% -0.3 p.p 3.1% 2.8% -0.3 p.p Provision for profit share program 10,760 12, % 6,423 6, % Total 32,497 37, % 17,114 20, % NET FINANCIAL INCOME (EXPENSE) Table 23 Net Financial Income (Expense) (R$ Thousand) 1S17 1S18 AH 2Q17 2Q18 AH Gains and losses with derivatives (8,987) 29,556 n.m 15,625 30, % Interest (37,592) (34,394) -8.5% (21,023) (17,343) -17.5% Monetary variation (2,600) % (1,794) % FX variation 9,105 (22,933) n.m (13,211) (26,879) 103.5% Other financial revenues (expenses) (4,352) (2,443) -43.9% (2,070) (1,289) -37.7% Total (44,426) (30,214) -32.0% (22,473) (15,032) -33.1% % Net Revenue -6.4% -3.4% 3.0 p.p -6.6% -3.2% 3.4 p.p Table 24 Gain (Loss) from Derivative Operations (R$ thousand) 1S17 1S18 AH 2Q17 2Q18 AH Swap of debt in Dollar to Real (8,987) 29,556 n.m. 15,625 30, % Total (8,987) 29,556 n.m. 15,625 30, % Note: In accordance with Note 20 of the Quarterly Information (ITR) Note that, since a portion of debt in USD was swapped to BRL and another portion 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 effects from 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 26 - Adjusted Net Financial Income (Expense). Table 25 Adjusted Net Financial Income (Expense) (R$ thousand) 1S17 1S18 AH 2Q17 2Q18 AH Interest (45,020) (33,269) -26.1% (20,557) (15,529) -24.5% Net FX Variation on swapped operation 7,546 5, % 1,968 1, % Monetary Variation (2,600) % (1,794) % Other financial revenues (expenses) (4,352) (2,443) -43.9% (2,070) (1,289) -37.7% Total (44,426) (30,214) -32.0% (22,473) (15,032) -33.1% % Net Revenue -6.4% -3.4% 3.0p.p. -6.6% -3.2% 3.4p.p. In 2Q18, we recorded a net financial expense of R$15,032 thousand, compared to the expense of R$22,473 thousand in 2Q17. The reduction in interest expenses is due to the renegotiation of financing rates, as explained in the section Debt. The main factors contributing to this variation was the gain from exchange variation due to the depreciation in the local currency in the quarter, which affected advances to suppliers and trade receivables denominated in dollar. Page 45 of 120

46 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 The significant amount of Other financial income (expenses) was due to a discount on the sale of ICMS in 2017, which did not recur in In parallel, PIS/COFINS taxes on financial investments decreased due to the reduction in the CDI rate. NET INCOME Table 26 Net Income (R$ thousand) 1S17 1S18 AH 2Q17 2Q18 AH Income before income tax 240, , % 115, , % Income and social contribution taxes (78,659) (164,355) 108.9% (37,327) (81,355) 118.0% Consolidated net profits for the period 162, , % 78, , % Assigned to parent Company 151, , % 76, , % Attributed to non-controlling Partners 10,831 26, % 1,629 11, % Net Margin 23.4% 38.0% 14.6 p.p 22.8% 36.2% 13.4 p.p Once again, we set new record for Net Income in the quarter and half-year period. Net Income amounted to R$168,196 thousand in 2Q18, up R$90,002 thousand or 115.1%, from the same period last year, with net margin expanding 13.4 percentage points (22.8% in 2Q17). In 1S18, Net Income amounted to R$337,455 thousand, up R$175,321 thousand on 2017, with net margin of 38.0%, expanding 14.6 percentage points from 1S17. The main factor contributing to this increase was the Gross Income growth in the comparison period, reflecting the higher margins for cotton and soybean resulting from the combination of excellent yields and larger planted area. In the case of soybean, we obtained a record yield of 3,756kg/ha, 14.4% higher than in the 2016/17 year crop, 30% higher than the five-year average obtained to the 2015/16 crop year and 11% higher than the Brazilian average, based on CONAB data for July. In the case of cotton, for the crop currently being harvested, which is already 47.7% completed, we estimate a cotton lint yield of 1,787kg/ha, near the record yield registered last year, 18% higher than the average of the five-year period to 2015/16 and 7.4% higher than the Brazilian average, also based on the latest CONAB data. The improvement in figures reflects the consolidation of our current strategy, one of the pillars of which focuses on improving the efficiency of our business. We are attaining this new level of results due to the repositioning of our production units, the maturation of our land, the optimization of our asset utilization (intensification of second crop) and the reinforcement of our machinery base. 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 preestablished Adjusted EBITDA margin with a combination of factors such as Price, Foreign Exchange and Cost, most of the instruments for protecting against commodity Page 46 of 120

47 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 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 July 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: Table 27 Hedge Position Fiscal Year FX Rate (1) Hedge (%) R$ / US$ Hedge (%) R$ / US$ FX Hedge Commitments (1) Total Cotton Hedge (%) US / pound (2) Hedge (%) US / pound (2) Commercial Hedge Financial Hedge (4) Cotton Total Hedge Soybean Hedge (%) US$ / bushel (2) Hedge (%) US$ / bushel (2) Commercial Hedge Financial Hedge (4) Commitments (3) Soybean Total Hedge Corn Hedge (%) R$/Bag (5) Hedge (%) R$/Bag (5) Commercial Hedge Corn Total Hedge (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. (4) Includes transactions involving futures, swaps and accumulators. (5) Farm price. PROPERTY, PLANT AND EQUIPMENT / INTANGIBLE ASSETS The main investments in 2Q18 were: (i) (ii) (iii) Acquisition of agricultural machinery and tools, mainly at the Paiaguás and Planeste farms; Soil correction mainly at the Perdizes, Parnaíba and Pioneira farms; Buildings and facilities, mainly at the Paiaguás and Planorte farms. Table 28 Capital Expenditure CAPEX (R$ thousand) 1S17 AV 1S18 AV 2Q18 AV Machinery, implements and equipment 17, % 21, % 13, % Land acquisition % % Soil correction 5, % 9, % 7, % Buildings and facilities 8, % 12, % 7, % Cotton ginning plant % Grains storage 1, % % % Soil cleaning 2, % 1, % % Vehicles 1, % 2, % % Aircraft - - 8, % % Software 4, % 2, % 1, % Property improvements % % Others 1, % 2, % 1, % Total 43,142 61,940 33,906 Page 47 of 120

48 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 DEBT Adjusted gross debt on June 30, 2018 stood at R$1,617 million, up R$39 million or 2.5% from the end of 4Q17. However, this variation reflects the prepayment of R$129 million of liabilities with high fixed rates, which were renegotiated at lower rates. The following chart shows the changes in adjusted gross debt in 1S18: Figure 29 Breakdown of Adjusted Gross Debt (R$ thousand) 463, ,892 1,578,117 50,779 49,882 38,378 36,052 1,617,259 Adjusted Gross Debt Dec/2017 New Loans Amortization of Principal Interest Interest FX Variation AmortizationAppropriation Gross Debt Negative Change Positive Change SWAP Variation (MTM) Adjusted Gross Debt Jun/2018 Adjusted net debt increased R$828.7 thousand to R$1,093.8 thousand, as shown in Table 29 below: Table 29 Financial Net Debt (R$ thousand) Index 4Q17 2Q18 4Q17 2Q18 Applied in Fixed Assets Finame BNDES Pre, TJLP ( ¹ ) & Currency Basket 5.58% 5.50% 111, , , ,993 Applied in Working Capital Rural Credit Pre 8.07% 6.98% 172, ,489 CRA (5) CDI 7.06% 6.55% 201, ,112 Working Capital Pre 7.58% 7.20% 235, ,840 External Loans Pre 9.00% 6.50% 13, ,820 External Loans CDI 8.05% 7.55% 571, ,810 External Loans US$, Libor (2) +Pre 6.10% 6.79% 82,808 48,820 Working Capital CDI (4) 7.91% 7.20% 200, ,484 Total Indebtedness 7.57% 6.99% 1,589,175 1,664,368 (+/-) Gains and losses w/ derivatives connected w/ applications and debts (3) 11,057 47,109 (=) Adjusted Gross Debt 1,578,117 1,617,259 (-) Cash 749, ,401 (=) Adjusted Net Debt 828,788 1,093,858 EBITDA of the last 12 months 738, ,622 Adjusted Net Debt/Adjusted EBITDA 1.12x 1.29x Adjusted Net Debt/NAV 18.9% 27.3% (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) Interest considering swap. (5) Financial statement value. Page 48 of 120

49 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 The Adjusted Net Debt/Adjusted EBITDA ratio ended the period at 1.29x, as shown in the following chart: Figure 30 Changes in Net Debt/EBITDA Ratio 5,5x ,009 1,094 4,5x R$ MM ,5x 2,5x 1,5x 0,5x - -0,5x Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Adjusted EBITDA Adjusted Net Financial Debt Adjusted Net Financial Debt X Adjusted EBITDA The following chart shows the total debt amortization schedule: Figure 31 Gross Debt Amortization Schedule (R$ thousand) 675, , , , , , ,000 44,480 25,681 18,800 12,061 33,415 Cash Flow After 2022 R$ USD Figure 32 Summary of Gross Debt Profile 6,99 (1) 96,98% 49,76% 50,24% 6,79 (2) 3,02% Short Term Long Term R$ US$ (1) Weighted average rate of debt in R$ (2) Weighted average rate of debt in USD Page 49 of 120

50 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Figure 33 Gross Debt by Index and Instrument 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 30 Return on Equity (R$ million) Net Profit (4) SLC Agricola Net Land Appreciation (1) (24) LandCo Net Land Appreciation (1)(2) Subtotal 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 31 Return on Net Assets (R$ million) Net Profit (3) Net Land Appreciation (1) (36) Subtotal Net Asset 2,598 3,196 3,635 4,113 4,696 5,017 4,857 5,074 Working Capital 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 32 Return on Invested Capital (R$ million) Operational Result (4) Adjusted IR (38) (87) (72) (35) (40) (78) 20 (133) Adjusted Operational Result Net Land Appreciation (1) (36) Operation Result with Land Appreciation Invested Capital 2,110 2,527 2,987 3,753 4,329 4,788 5,010 5,021 Gross Debt (ST and LT) (2) ,170 1,332 1,711 1,807 1,471 Cash (2) , Net Debt (2) , Shareholder s Equity (3) 1,771 2,018 2,333 2,781 3,352 3,748 4,219 4,275 Invested Capital 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. Page 50 of 120

51 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 Table 33 Net Asset Value NAV (R$ million) 1S18 SLC Agrícola Farms (1) 2,520 SLC LandCo Farms (2) 682 Infrastructure (excl. lands) (3) 926 Accounts receivable (excl. derivatives) (3) 87 Inventories (3) 502 Biological Assets (3) 770 Cash (3) 454 Subtotal 5,880 Suppliers (3) 109 Adjusted gross debt by derivatives operation (3)(4) 1,557 Debt related to land acquisition (3) 14 Subtotal 1,680 Net Asset Value 4,200 Net Asset per Share 44.1 (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. Table 34 Changes in Working Capital Working Capital Variation S18 Assets Trade accounts receivable 168,128 40,596 (-) Hedge Accounting- Non cash (47,140) (33,349) Inventories 569, ,266 (-) Biological Assets + Inventories adjustment ( non-cash) (76,735) (242,982) Recoverable Taxes 45,908 34,616 Biological Assets 522, ,513 (-) Biological Assets (non cash) (21,094) (211,256) Expenses incurred in advance 8,354 23,219 Subtotal 1,169, ,623 Liabilities Suppliers 424, ,043 Taxes, rates and sundry contributions 28,414 15,499 Social charges and labor legislation obigations 62,701 56,568 Provisions for tax, environmental and labor risks 2,446 2,526 Others 163,402 (27,599) Advances from clients 98, ,179 Related party transactions Debt Operations with derivatives (non cash) (42,583) (247,915) Securities payable (land) (17,543) 13,873 Dividends payable 83,598 10,822 Leases payable 37,486 42,033 Others accounts payables 3,792 1,141 Subtotal 844, ,438 TOTAL 325, ,185 Change in WC 52, ,649 Page 51 of 120

52 ITR - Quarterly Information - 06/30/ SLC AGRICOLA S.A Version: 1 LOCATION OF UNITS SLC Agrícola farms 1. Paiaguás 2. Planorte 3. Pamplona 4. Planalto 5. Parnaíba 6. Palmeira 7. Parnaguá 8. Paineira leased farm 9. Parceiro 10.Palmares 11.Pantanal Joint Ventures with Dois Vales Group 12. Pioneira Joint Venture with Mitsui Co. 13. Perdizes 14. Paladino SLC Landco Farns (SLC Agrícola 82%, Valliance 18%) 15. Planeste 16. Panorama 17. Piratini 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. Forwardlooking 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. Page 52 of 120