AgroGalaxy Participações S A : Dados Econômico-Financeiros

Earnings Release | 3Q23

Earnings Release | 3Q23, 9M23 e LTM 3Q23
Summary
Summary	2
3Q23 Highlights (vs. 3Q22)	2
Video Conference	2
Message from the CEO	3
Seasonality (Input)	4
Highlights	5
Adjustments to the Results	7
3Q23 Results vs. 3Q22	8
Investments	13
Operating Cash Generation (Consumption) and Indebtedness (R$ mi)	14
Debt Profile and Capital Structure	15
Delinquency	16
PCDA	16
Exposure of Agricultural Commodities and Foreign Currency	17
Order Portfolio	18
Stores Opened Maturation	18
ESG	19
Exhibit I - Financial Statement, Balance Sheets and Cash Flow Statements	20
Exhibit II - Reconciliation of Adjusted EBITDA, Net Income and Gross Profit	25
Exihbit III - Industry and Corporate Profile	26
Exhibit IV - AgroGalaxy Glossary	29

Página 1

Earnings Release | 3Q23, 9M23 e LTM 3Q23

Third Quarter of 2023 Results

São Paulo, November 13, 2023 - AgroGalaxy Participações S.A. ("AgroGalaxy" or "Company") (B3: AGXY3) discloses its results for the 3Q23. The comments included in this release refer to the consolidated results prepared according to the CVM (Brazilian Securities and Exchange Commission) and the CPC (Brazilian Accounting Pronouncements Committee) regulations and follow the International Accounting Standards (IFRS) issued by the International Accounting Standards Board ("IASB"). Financial information, except where otherwise indicated, is presented in thousands of Brazilian reais and comparisons refer to the 3Q22, 9M22 and LTM3Q22. Due to rounding figures, sums of accounts may differ.

3Q23 Highlights (vs. 3Q22)

Strategy announced in 2Q, focusing on margin and expense reduction successfully accomplished, despite market delay

Inputs gross margin: 18.2% (+0.7 p.p.), higher gross margin for the 3Q and highest of the year, although historically quarters with lower margins due to the greater mix of fertilizers.

SG&A ex-depreciation and amortization (D&A): down 23%, 7.6% of net revenue (=3Q22).

+283% interim corn crop (safrinha) barter volume, reinforcing credit quality

Segments with highest gross margin: Specialties: 8.2% of the input

revenue mix (+2.8 p.p.). Bioinputs: R$65 million (5% mix of inputs, +1.7 p.p.). AGXY is the largest bioinputs platform in the Brazilian retail market.

28-day reduction in working capital

30,756 active customers (+31%).

+45% receiving grains: producer confidence in AGXY.

Delinquency under control: returns to single digit in November.

Inventories with 2022 equalized prices.

Producer carrying out order in one-on-one negotiation (from hand to mouth).

Cash and cash equivalent maintenance: =3Q22 (R$900 mi).

• Net revenue: R$ 2.4 bi (-23%). Bioinputs revenue: R$ 1.3 bi (-42%). Volume +3% and price - 44%.
• Adjusted gross profit: R$ 255.3 mi (-36%), 10.8% margin. Bioinput
  adjusted gross profit: R$ 237.4 mi (-39%), 18.2% margin (+0.7 p.p.).
• Adjusted EBITDA: R$ 74.4 mi, 3.1% margin (-2.3 p.p.).

2023 focus with concrete results: actions to reduce delinquency ratios, equalize inventories, focus on profitability, ramp up of open stores.

Subsequent event: in November, the extension of part of the short-term maturities of R$ 839 million was negotiated. Settlement will take place within 3 years.

Video Conference

IR Contact

Eron Martins

CFO and IRO

Daniel Kuratomi

IR Manager

Flavia Alves Costa

IR Analyst

[e-mail]. br

(11) 3014 - 7580

AgroGalaxy

Participações S.A.

Publicly-Held Company,

headquartered at

Rua Iguatemi, 192 - 10th

floor

Itaim Bibi - São Paulo - SP

ri.agrogalaxy.com.

br

November 14, 2023 (Tuesday)	Portuguese with simultaneous translation into
English
	Clickhereto sign up for the video conference.
11:00AM (Brasília Time) | 9:00AM (EST)

Página 2

Earnings Release | 3Q23, 9M23 e LTM 3Q23

Message from the CEO

Before discussing quarter results, I would like to recall some events that agitate the sector in 2022 and our action plan to deal with this moment. I emphasize that this is not the first and will not be the last time that the sector faces a challenging scenario. Some volatility is inherent to a globalized business like ours, but with my experience of more than 40 years in this sector, I can say that the trajectory of agribusiness may have setbacks, but it is an upward trend.

At the beginning of 2022, the conflict between Russia and Ukraine began, culminating in intense volatility in prices and the threat of a shortage of fertilizers around the world and likewise with some crop chemicals as a legacy of the Covid-19 pandemic. Since the end of last year, we anticipated that the return to normal supply of these inputs and the excess storage of crop chemicals in the sector would lead to price drops. This downward trend influenced the behavior of the producer, who began to place orders that were much closer to their use throughout the year.

Coupled with this, commodity prices, mainly soybeans and corn, had significant drops during the year, leading producers to hold back on soybean sales, the most delayed in 4 years, and, consequently, delay payments to distributors.

We promptly put into practice a plan to deal with this scenario, which mainly involved: (i) balancing inventories with mismatched prices, carrying out product returns to the supplier and sales campaigns that led to a temporary reduction in margins in 1H23 and recovery in 3Q23; (ii) reduction in delinquency ratios, with grain recovery campaigns for the 2023 interim crop and 2023/24 harvest in partnership with suppliers to encourage barter and, thus, reduce the risks of not receiving installments. In November, we reduced delinquency to single digit, a significant improvement compared to June this year; (iii) focus on portfolio profitability, in other words, improve our margins. We managed to improve our gross margin in 3Q, reaching 18.2%, having increased from 15.1% in 1Q23 and 16.6% in 2Q23. This was the 3Q with the highest gross margin in the last 3 years and the highest of the year, proof that we are on the right path. The 3Q is usually the company's lowest margin quarter of the year, given that it is the quarter in which we make the most fertilizer sales.

We were also able to reduce our SG&A by 23% ex- depreciation and amortization; and (iv) focus on ramping up opened stores, which have been 58 stores since 2019 and which have already contributed with 23% of revenue in the first nine months of 2023.

Regarding 3Q23 results, I highlight the continued trust of producers in AgroGalaxy, proving our strength in challenging times: we reached almost 31 thousand active customers, growth of 31% compared to

September 2022 and in 3Q23 we received 44% more grains over 3Q22.

As a result of our research to make the best recommendation to producers, we continued to advance in specialty and bioinputs segments, which were a major highlight of our revenue for another quarter. We advanced 2.8 p.p. in the mix of specialties and 1.7 p.p. in bioinputs (vs. 3Q22) despite the challenging scenario I described. This increase was only possible due to testing of our CTAs, campaigns focused on the field and education and training of the sales force. We are the number one retail platform for bioinput sales in Brazil.

In 3Q23, total net revenue reached R$2.4 billion, a decrease of 23%. Input revenue fell by 42%, totaling R$ 1.3 billion, as a result of a 44% drop in prices and a 3% increase in volume. Organic same store sales reached -45%in the period. I highlight that the end of September, which is crucial for summer harvest revenue, mainly in seeds and crop chemicals, was negatively impacted by an atypical high temperature for the season, reaching more than 40ºC in some regions.

Still in 3Q23, Adjusted Gross Profit was R$255 million, a drop of 36% with a margin of 10.8%. In SG&A we achieved important progress, with a 23% reduction ex-D&A and maintaining the percentage of net revenue vs 3Q22. Adjusted EBITDA totaled R$74.4 million, with a margin of 3.1%. The Net Result totaled -R$ 89 million and the financial result continued to be affected by the Selic rate at high levels. From the aspect of capital structure, we managed to close the quarter with a relevant cash and cash equivalent position, and investments of R$0.9 billion, flat compared to September 2022. A major highlight on this front occurred after the closing of the quarter. In November we negotiated the extension of part of our short-termmaturities, totaling R$839 million, with settlement within 3 years. This is an important step towards adapting our capital structure to the challenging times for the sector.

The order portfolio totaled R$2 billion in September 2023, a reduction of 28% compared to the same period in 2022. Producers continue to place orders from hand to mouth due to the expectation of price drops in some segments, notably fertilizers and crop chemicals.

I can say that the worst is behind us, and we are happy to see our efforts to recover margins having an effect, with the combination of (i) elimination of stocks with mismatched prices; (ii) reduction of expenses; (iii) recovery of margins and (iv) ramp up of new stores reflected in our results. I reinforce our commitment to continue working hard to overcome this challenging moment and continue to consolidate ourselves as the best and most sustainable retailer of agricultural inputs and services aimed at Brazilian farmers, establishing partnerships, and offering unique solutions.

Welles Pascoal, AgroGalaxy CEO

Página 3

Earnings Release | 3Q23, 9M23 e LTM 3Q23

Seasonality (Input)

The agribusiness industry is subject to significant seasonality over the year, especially given the crop cycles that depend on specific climate conditions. Brazil has unique climate conditions compared to other countries producing agricultural commodities, contributing to the plantation of two to three crops in the same area per year. The seasonality of the orders and the Company's input billings are shown below:

of orders and input revenue	(annual 2022)
Seasonality

1Q
SOYBEAN
SOYBEAN	INITIAL
HARVEST
CORN
	PLANTING

30% 22%

2Q	3Q	4Q
CORN		SOYBEAN
		Orders
		Revenue
		INITIAL
	CORN	SOYBEAN
	HARVEST	PLANTING

34%		39%
	29%
	24%
10%		12%

* Reference from 2022. It considers a full-year revenue from Boa Vista and Ferrari Zagatto. It may vary according to the region.

Thus, considering that the activities of the Company's customers are directly related to the cycles of the crops, which are subject to seasonality issues, revenues from input are also subject to significant seasonality.

The seasonality of the crops also implies the seasonality of the gross profit, calculated at different basis for the fiscal year, which may cause a significant seasonal effect on the operating results calculated during the separate quarters of the fiscal year, as shown above.

Historical Seasonality (Input)

The seasonality of the Company's input orders and billings may vary according to the plantation periods of different crops each year.

		Seasonality | Input		1Q			2Q		3Q			4Q
2020			Billing	16%		10%	24%		50%
		Orders	40%		30%	15%		15%
	2021			Billing*		19%			8%		29%			44%
			Orders		47%			22%		19%			12%
2022			Billing	22%		10%	29%		39%
		Orders	30%		34%	24%		12%
	Average			Billing		19%			10%		27%			44%
			Orders		39%			29%		19%			13%

* It considers a full-year billing from Boa Vista and Ferrari Zagatto.

Página 4

Earnings Release | 3Q23, 9M23 e LTM 3Q23

Highlights

	Operational Highlights		Sep/23			Sep/22			% change			Jun/23			%change
						Sep/23					Sep/23
									Sep/22						Jun/23
	# stores	169		150			12.7%		169			-
	# launches, year-to-date	6		5			n.m.		6			-
	# of technical sales consultants (CTV)	596		556			7.2%		624			-4.5%
	# silos	28		28			-		28			-
	bags received - accrued for the year (million)	32.5		27.2			19.5%		17.8			82.1%
	# seed processing units *	13		13			-		13			-
	# CTAs**	11		8			37.5%		11			-
	# customers	30,756		23,511			30.8%		30,198			1.8%
	Input revenue/customers (R$ thousands)***	205.5		291.2			-29.4%		240.0			-14.4%
	# employees	2,227		2,535			-12.1%		2,349			-5.2%

• 3 own and 10 tooling
• AgroGalaxy Technological Centers
• The amounts consider the last 12 months

Página 5

Earnings Release | 3Q23, 9M23 e LTM 3Q23

	Financial Highlights (R$		3Q23			3Q22		%		9M23		9M22		%
	million)					change				change
	Total Net revenue		2,369.1			3,074.3		-22.9%		6,986.3		8,186.6		-14.7%

LTM	LTM	%
3Q23	3Q22	change
10,392.2	10,704.4	-2.9%

	Input revenue	1,303.6		2,229.6	-41.5%		3,359.5		4,712.1	-28.7%		6,318.9		6,846.1	-7.7%
	Grain revenue	1,065.5		844.7	26.1%		3,626.9		3,474.6	4.4%		4,073.3		3,858.3	5.6%
	Growth indicators
	Same Store Sales¹	-45.4%		45.8%		-91.2 p.p.	-28.8%		61.0%		-89.8 p.p.	-6.4%		46.3%		-52.7 p.p.
	Volume variation2	2.9%		11.8%		-8.9 p.p.	1.9%		15.9%		-14.0 p.p.	-2.2%		20.8%		-23.0 p.p.
	Price variation2	-44.4%		34.7%		-79.1 p.p.	-30.6%		47.9%		-78.5 p.p.	-5.5%		32.9%		-38.4 p.p.
	Input revenue/CTV3	2.2		3.7	-40.5%		5.4		7.8	-30.8%		9.5		12.0	-20.8%
	Digital Revenue
	Digital enabled revenue	474.5		1,215.4	-61.0%		1,222.4		2,100.5	-41.8%		2,436.3		3,224.7	-24.4%
	% of AGXY inputs net revenue	36.4%		54.5%		-18.1 p.p.	36.4%		44.6%		-8.2 p.p.	38.6%		47.1%		-8.5 p.p.
	Ex-Agrocat, FZ
	Adjusted Gross Profit 4		255.3			399.2		-36.1%			605.9			916.0		-33.8%			1,248.6			1,342.4		-7.0%
	% net revenue	10.8%		13.0%		-2.2 p.p.	8.7%		11.2%		-2.5 p.p.	12.0%		12.5%		-0.5 p.p.
	Input margin	18.2%		17.5%		+0.7 p.p.	16.5%		18.5%		-2.0 p.p.	18.6%		18.8%		-0.2 p.p.
	Grain margin	1.7%		1.1%		+0.6 p.p.	1.4%		1.2%		+0.2 p.p.	1.8%		1.4%		+0.4 p.p.
	Adjusted EBITDA5		74.4			165.2		-54.9%			60.5			351.7		-82.8%			413.2			597.4		-30.8%
	Adjusted EBITDA Margin	3.1%		5.4%		-2.3 p.p.	0.9%		4.3%		-3.4 p.p.	4.0%		5.6%		-1.6 p.p.
	Adjusted Net Profit (Loss)5		-88.7			19.4		n.m.			-442.5			-132.9		232.9%			-255.6			25.8		n.m.
	Adjusted Profit (loss) Margin	-3.7%		0.6%		-4.3 p.p.	-6.3%		-1.6%		-4.7 p.p.	-2.5%		0.2%		-2.7 p.p.
	Adjusted Net Debt6		-			-		-			-			-		-			1,745.0			1,621.5		7.6%
	(Net Debt/Adjusted EBITDA	-		-	-		-		-	-			4.2x		2.7x		+1.5x
	LTM)6

ROIC	-	-	-	-	-	-

11.6%	23.0%	-11.4 p.p.

1 Same Store Sales considers the sales from stores operating for more than 12 months.

2 It considers100% of CTVs during the assessed periods.

3 Disregards billings from FZ and Agrocat.

4 Adjusted Gross Profit: it considers: (a) gains or losses from changes in the fair value of commodities; (b) exchange rate gains or losses; (c) negative impact of the cash effect related to rent payments; and (c) reversal of the effect of unusual expenses.

5 Adjusted EBITDA and Profit: Exhibit II table presents the adjustments made.

6 Net Debt: according to the Net Debt reconciliation section.

Página 6

Earnings Release | 3Q23, 9M23 e LTM 3Q23

Adjustments to the results

The Adjusted EBITDA is impacted by the cash generated from payments made for the real estate leasing (stores) during the period and disregards: (i) MTM commodities: gains or losses from the variation of the fair value of the commodities, as the fair value on the closing of each fiscal year does not impact the cash and does not reflect the results from purchase and sale; (ii) exchange variation of hedge operations carried out to protect revenue or cost of products; (iii) non-recurring items (e.g., extemporaneous credits, strategic consultancy and expenses with staff restructuring); and (iv) commercial and financial results: interest expense, interest-earning assets and discounts granted and obtained.

Besides items (i), (ii) and (iii), mentioned above, the adjusted net profit also excludes the following from the calculation:

1. amortization of capital gains from business combinations; (vi) unsettled exchange variation (accrual and MTM); (vii) the effects from CPC 06/IFRS 16 and others; and (viii) the impact from deferred IR/CS (Income Tax/Social Contribution).

Check the IR websitefor further details on the adjustments.

Página 7

Earnings Release | 3Q23, 9M23 e LTM 3Q23

3Q23 vs. 3Q22 Results

Net Revenue

Net Revenue (R$ million)

3,500

3,000

2,500

2,000

1,500

1,000

500

0 -500-1,000-1,500

							-22.9%
3,074											2,639	-41.5%
	(926)									+26.1%
2,230					221
1,304
845												1,065
3Q22				Inputs						Grains		3Q23
				InsumosInputs						GrãosGrains

Net revenue for the period fell by 23%, reaching R$2.4 billion. Input segment posted a drop of 42% and grains grew by 26% vs. 3Q22. The decrease in input revenue (-44% price and +3% volume) was primarily due to: (i) reductions in the prices of crop chemicals (-74%) and fertilizers (-44%); and (ii) delay in soybean planting, postponing part of the revenue from September to October.

Both fertilizers and crop chemicals had price spikes in 2022 due to the Russia-Ukraine conflict and the Covid-19 pandemic, respectively.

In terms of volumes, the 13% growth in both crop chemicals and fertilizers stands out, even in a scenario of delayed planting. On the other hand, there was a 17% drop in the volume of seeds impacted by the delay in planting the summer crop given the high temperatures recorded in September, with more than 40ºC in some regions of Brazil, hindering the start of planting of the 23/24 summer crop.

Same store sales for the period were -45% given the effects described.

The increase in grain revenue was mainly due to the greater volume of soybeans received from the 22/23 harvest, resulting in greater revenue anticipation.

Input Net Revenue Evolution per quarter

(R$ million)

			3Q22			4Q22				1Q23				2Q23				3Q23
4,000
3,000			2,230		393									1,304			+2.9%
				1,577
2,000			332	50	382					64
															-44.4%
	152	449
1,000						2,134	1,692		63	479	2,230
		1,296
													781
0									-102
								-13					-365	-991
-1,000
-2,000
						Organic				Volume		Price				M&A
					Orgânico				Volume		Preço				M&A

Página 8

Earnings Release | 3Q23, 9M23 e LTM 3Q23

Inputs Mix

Specialties segment had the highest share gain in the input mix in 3Q23, reaching 8.2% of the mix (+2.8 p.p.), due to the better product mix within the segment, in addition to the reductions observed in fertilizers and crop chemicals, as described in the revenue section.

Bioinputs, which include biological products, totaled R$65 million in 3Q23, or 5.0% of input revenue, an increase of 1.7 p.p. vs. 3Q22. In the year to date, bioinputs totaled R$172 million, an increase of 31.7% vs. 9M22. This relevant increase reflects the Company's actions, such as: (i) testing of protocols in CTAs; (ii) carrying out a biological campaign, and (iii) support from the TechA team and technical rounds with the CTA team in educating the sales force on bioinputs with data from tests carried out at the CTAs that prove the greater productivity of cultures with their usage.

0.9%	Input Net Revenue Mix (%)	8.2%	0.6%
5.4%
			FertFertilizerslizantes
20.5%	44.8%		19.8%
3Q22		Crop Chemicals
			Defensivos		3Q23 52.5%
28.4%				SementesSeeds	18.8%
			EspecialidadesSpecialty

OutrosOthers

Adjusted Gross Profit *

																Input Adjusted Gross Profit (R$ mi)
				-36.1%										17.5%	-	18.2%
								300.0		+0.7 p.p.
13.0%
							10.8			-2.2 p.p.	200.0		389.5						0.0%
											100.0					237.4			-20.0%
											0.0									-40.0%
											3Q22			3Q23
	3Q22			Inputs		Grains			3Q23
												Adjusted Input	Insumos		Adjusted Gross
																Gross Profit		Profit Margin

Adjusted gross profit reached R$255 million in 3Q23 vs. R$399 million in 3Q22, with a margin of 10.8% (-2.2 p.p.). The reduction in adjusted gross profit reflects the decrease in revenue and the greater share of grains in the revenue mix, 27% in 3Q22 to 45% in 3Q23, due to the drop in input revenue explained in the revenue section.

• Adjusted gross profit: disregards gains or losses from changes in the fair value of commodities and considers gain losses from exchange rate variations adjusted in EBITDA for margin calculation purposes.

Adjusted gross profit from input reached R$237 million in 3Q23, 39% drop, with a margin of 18.2%, (+0.7 p.p.), the highest margin for 3Q in the last 3 years. The variation was due to the reduction in revenue described in the revenue section. There was an increase in the margin, as a result of efforts made to increase profitability and improve the mix, in addition to adapting stocks to healthy conditions and prices practiced by the market, offsetting the drop in fertilizers and crop chemicals prices. It is important to highlight that 3Q has the lowest margin within the year, given that it is the period with the highest fertilizer sales. However, due to the Company's inventory normalization scenario and commercial strategy focused on recovering margins, 3Q23 posted the highest margin of the year (15.1% in 1Q23, 16.6% in 2Q23 and 18.2% in 3Q23).

Página 9