The following table describes the cash, short and long term debt and total capitalization (defined as short and long term debt, plus shareholders’ equity) position of the Company:

Indebtedness, Cash and Capitalization (R$ ┬┤000) 12/31/2016 09/30/2016 06/30/2016 03/31/2016 12/31/2015
Cash, Financial Investment and Equity 39,593 52,326 54,204 90,922 186,117
Short-Term Loans and Financing 69,070 56,665 51,615 54,237 18,182
Long-Term Loans and Financing 39,126 40,376 48,230 48,517 50,246
Total Gross Indebtedness 108,196 97,041 99,845 102,754 68,428
Total Net Indebtedness (-68,603) (-44,715) (-45,641) (-11,832) 117,689
Shareholders┬┤ Equity 656,429 691,543 687,488 733,355 145,291

BrasilAgro intends to use its cash availability to acquire and lease real estate properties and to develop such properties. Considering that the Company’s strategy primarily relies on the identification and development of opportunities in the agricultural and real estate sectors, it is likely that any cash availability will be fully used in the short-term.

For as long as the Company has funds under its control that are not yet being used to implement its strategy, BrasilAgro will invest them in the same extremely conservative way it always has, with the aim of preserving its capital and high liquidity.