Institutional Presentation IQ FY2017

Transcription

1 Institutional Presentation Institutional Presentation IQ FY2017 March

2 Corporate Structure IFISA* & Others FLOAT 30.9% 69.1% 100% 100% 39,6% 63.4% Farms in Farms in Farms in ARGENTINA BOLIVIA BRASIL 100% 59.59% 50% Farms in PARAGUAY 94.61% 68.30% 29.90% * IFISA owns a 31.7% stake in IDBD 2

3 Pioneer Agribusiness Company with 80 years of history 1936 Founded as a subsidiary of a Belgium company that provided rural loans in Argentina 1994 Mr. Eduardo Elsztain Appointed Chairman & Mr. Alejandro Elsztain CEO 1 ST Follow on for USD 64 M 1998 Farmland Purchases in Argentina ~ 9,000 ha Main Acquisition Agroriego San Luis REGIONALIZATION 2006 Expansion to Brazil IPO for USD 276 M Listed in Novo Mercado 2008 Expansion to Bolivia & Paraguay Follow on for USD 288 M Listed in the local stock exchange and spun-off ot its parent company 1994: 7 Farms 20,000 has st Latam Agricultural Company listed in the US 2 nd Follow on for USD 92 million Farmland Purchases & Sales in Argentina Investment in the leader real estate company in Argentina 22.4% 2012 Brasilagro listed in NYSE 1 ST brasilian agricultural company listed abroad 2016: ~ 622,256 has in 30 farms 1,282 employees in agriculture related operations 3 leading farmland development cases in Harvard Business School Due Dilligence for more than 4 million ha in the region Sold Paraguay to Brasilagro nvestmenti through IRSA 63.4% 3 6

4 Agribusiness Market s Strengths 3%* Lack of Supply Only 3% of the surface of the Earth would be land available for agriculture Excess of Demand 9 Bn inhabitants to be fed by 2050 mostly coming from developing countries Increase in areas Productivity Gain From 1967 to 1987 From 1987 to 2007 From 2007 to ,7% 60,6% 38,8% 24,3% 39,4% 61,2% Productivity Increase not Enough The increase in the demand for food will need an expansion of productive areas (108 mm ha) South America Strenghts The region has the main resources (land & water) to meet the increasing demand

5 Few Listed Companies in the Region with different business models Return High Mid Low Benefit from farmland price appreciation Acquire & Lease Acquire & Plant Lease & Plant Acquire & develop the land Operational gains Commited capital High High Low High Acquire & Develop the Land Lease & Plant Pioneer in Farmland Development Acquire & Plant Acquire & Lease Low Mid High Replicating it s business model in Brazil, Bolivia & Paraguay Risk

6 Value Creation ROIC CRESUD Business Strategy FARMLAND DEVELOPMENT FARMING ACTIVITY Urban Property Agriculture Specialties / Agriculture Stable Yielding Farmland Development Cattle Farming Activity Bare Land Time Time 6 6

7 CRESUD Diversified Rural Portfolio ~ 800,000 ha hectares under management in the Region Planted Area & Breakdown (in K ha) BOLIVIA BRAZIL farms 12,533 ha 6 farms 124,317 ha SOYBEAN, CORN & SUGARCANE SOYBEAN, CORN & SUGARCANE FY 14 FY15 FY16 FY17E Argentina Brazil Bolivia Paraguay ARGENTINA PARAGUAY 11% 1% 7% 4% 1% 47% 17 farms 564,531 ha (*) 3 farms 58,754 ha 29% SOYBEAN, CORN MEAT & MILK (*) Incluye ha en concesión en Argentina SOYBEAN & MEAT Soybean Wheat Sugarcane Leased to 3rd Corn Sunflower Others LEASING AS COMPLEMENTARY BUSINESS ( ha in Argentina & Brasil) 7

8 Strong track record developing & selling Farms 19,1 7,8 Over 200k ha developed Potential to develop 153k ha 28,5 15,3 31,0 30,7 3,0 2,3 27,2 18,0 20,7 13,7 11,3 13,2 10,0 7,7 10,0 7,5 3,5 20,3 1,0 11,8 15,4 11,6 8,0 12,9 2,4 1,5 13,0 1,4 7,5 3,6 9,6 2,4 1,7 3,0 1,8 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017E Potencial Argentina Brazil Paraguay 152,6 28,7 15,6 108,3 Avg. 2 Farms / year Profits ~ 200% over BV Farmland Sales USD millon 133,8 Soja USD/tn 72,1 61,7 6.0 Profit USD M Sales USD M 27, ,3 9,0 10,7 4,3 1,4 10,3 5,2 9,7 7,6 4,7 0,5 13,3 13,1 0,0 3,0 3,9 1,7 6,9 0,6 3,2 7,2 6,6 0,3 3, IQ17 6,0 8 5,0 8 8

9 Regional Farmland appreciation USD/ha CAGR (10 years) Argentina - Corn Belt (USD/Ha) 9.5% 12.4% Brasil - Mato Grosso (USD/Ha) Paraguay - Corn Belt (USD/Ha) Bolivia - Corn Belt (USD/Ha) 22.2% 11.5% 9.7% Purchases in Purchases in Brasil Bolivia & Paraguay 9

10 Our largest Farmland Development Case Los Pozos, Salta ARGENTINA Turnaround of a Cattle farm into Cattle & Crop Farmland Has: Cattle infrastructure Investment USD/ha ,000 heads in 44,000 ha Land Price: USD/ha Bare Land Acquisition Cost USD/Ha. 10 Crop Investment USD/ha ,000 ha Land Price USD/Ha

11 Farmland Development Cases Agroriego, San Luis (ARGENTINA) Turnaround of Undeveloped Land into a regular crop production Technological Investment (equipment, holes & irrigation system) USD/Ha Has: Beef Cattle Low productivity farm Low rainfalls levels & underground water resources Acquisition Cost USD/Ha 700 Best Yielding Farm Land Price: ~ USD/ha

12 Investment in Fyo & Carnes Pampeanas Main Services Brokerage Derivatives Exports Specialties Logistics Trading Management Portfolio Mgt Training Meat Packing in La Pampa Strategic Location Volume (grain traded tons (in millon) Technical conditions of meat packing plant The processing capacity is 9,600 heads per month Market Share (fyo s share / total commercialized in Argentina) Due to its location the production comes from premium Angus and Hereford steers bred extensively in the fertile Pampas plains The plant meets the following standards: - HACCP (Hazard Analysis and Critical Control Point) - BRC (British Retail Consortium).- - Angus (CAB Certified Angus Beef). 12

13 Investment in IRSA: Leading Real Estate Company Leading real estate company in Argentina with opportunistic assets abroad. 94.6% of IRSA Propiedades Comerciales, leading commercial real estate company in Argentina with ~414,000 sqm of GLA located in premium locations. Landbak to develop ~ 3 millon premium sqm ~ 22 years listed in NYSE and MERVAL 94.61% 29.91% HOTELS LANDBANK INTERNACIONAL VP 49% 68.3% 49% SHOPPINGS OFFICES

14 Consolidated Debt as of September 30, 2016 Debt Description Agribusiness Amount (USD MM) Cresud Total Debt Cash & ST Investments 32.0 Cresud Net Debt Debt Amortization Schedule (Cresud Standalone - USD million) 127,5 48,6 58,8 46,9 19,

15 Land is our Value Thanks!