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LEASES

6 Months Ended

Jun. 30, 2023

LEASES

LEASES

19.LEASES

19.1.Right of use

The balances rolled forward are set out below:

Machinery and

Ships and

Lands

equipment

Buildings

boats

Vehicles

Total

Balance as at December 31, 2021

2,868,411

86,464

88,410

1,748,008

2,730

4,794,023

Additions/updates

849,996

66,821

61,647

4,216

982,680

Depreciation ⁽¹⁾

(360,225)

(40,732)

(64,301)

(124,890)

(2,303)

(592,451)

Write-offs ⁽²⁾

(75,026)

(75,026)

Balance as at December 31, 2022

3,283,156

112,553

85,756

1,623,118

4,643

5,109,226

Additions/updates

290,722

85,493

78,547

490

455,252

Depreciation ⁽¹⁾

(188,802)

(51,778)

(29,419)

(62,445)

(1,191)

(333,635)

Write-offs ⁽²⁾

(54)

(54)

Balance as at June 30, 2023

3,385,022

146,268

134,884

1,560,673

3,942

5,230,789

1)	The amount of depreciation related to land is substantially reclassified to biological assets to make up the formation costs.

2)	Write-off due to cancellation of contracts.

For the six-month period ended June 30, 2023, the Company does not have commitments to lease agreements not yet in force.

19.2.Lease liabilities

The balance of lease payables on June 30, 2023, measured at present value and discounted at the respective discount rates are set forth below:


		Average rate -				Present value of
Nature of agreement		% p.a. ⁽¹⁾		Maturity ⁽²⁾		liabilities
Lands and farms		12.52		April/2050		3,673,964
Machinery and equipment		11.43		April/2035		217,381
Buildings		10.84		September/2031		122,556
Ships and boats		11.39		February/2039		2,178,580
Vehicles		10.83		July/2026		3,503
						6,195,984

1)	To determine the discount rates, quotes were obtained from financial institutions for agreements with characteristics and average terms similar to the lease agreements.

2)	Refers to the original maturities of the agreements and, therefore, does not consider eventual renewal clauses.

The balances rolled forward are set out below:


		June 30,		December 31,
		2023		2022
Opening balance		6,182,530		5,893,194
Additions		455,252		982,680
Write-offs ⁽²⁾		(54)		(75,026)
Payments		(577,132)		(1,044,119)
Accrual of financial charges ⁽¹⁾		327,374		612,042
Exchange rate variations		(191,986)		(186,241)
Closing balance		6,195,984		6,182,530

Current		710,906		672,174
Non-current		5,485,078		5,510,356

1)	On June 30, 2023, the amount of R$104,137 related to interest expenses on leased lands was capitalized to biological assets to represent the formation cost (R$178,429 as of December 31, 2022).

2)	Write-off due to cancellation of contracts.

The maturity schedule for future payments not discounted to present value related to lease liabilities is disclosed in Note 4.2.

19.2.1.Amounts recognized in the statement of income for the period

The amounts recognized are set out below:


		June 30,		June 30,
		2023		2022
Expenses relating to short-term assets		5,559		1,038
Expenses relating to low-value assets		946		571
		6,505		1,609