Institutional Presentation

Transcription

1 Institutional Presentation FY

2 Corporate Structure Leading agricultural company in Latin America. It manages a portfolio of approximately 800,000 hectares in Argentina, Bolivia and through its subsidiary Brasilagro, in Brazil and Paraguay Controlling shareholder of IRSA, Argentina s leading real estate company 100% 100% 43,4% 63.7% Farms in Farms in Farms in ARGENTINA BOLIVIA BRASIL Through Dolphin 100% 50.1% 100% 86.3% 98.7% 76.6% 29.9% Farms in PARAGUAY 2

3 Pioneer Agribusiness Company with 82 years of history 1st Latam Agricultural Company to be listed both in the US and Argentina Pioneer in farmland development business More than 1,235 employees in agriculture related operations Due Dilligence for more than 4 million ha in the region 3 leading farmland development cases in Harvard Business School Follow on USD 288 M Owned + leased Has 852 (Th. Ha) IPO USD 276 M +17% CAGR Mr. Eduardo Elsztain Appointed Chairman & Mr. Alejandro Elsztain CEO Follow on USD 64 M Follow on USD 92 M Foundation 20 (Th. Ha)

4 Agribusiness Market s Strengths Excess of Demand + Lack of Supply 9 Bn 3% 9 Bn inhabitants to be fed by 2050 mostly coming from developing countries Productivity Increase not Enough Increase in areas Productivity Gain From 1967 to 1987 From 1987 to 2007 From 2007 to 2018 Only 3% of the surface of the Earth would be land available for agriculture South America Strenghts 75,7% 60,6% 38,8% 24,3% 39,4% 61,2% The increase in the demand for food will need an expansion of productive areas (108 mm ha) The region has the main resources (land & water) to meet the increasing demand 4

5 Return Agribusiness Market s Strengths Benefit from farmland price appreciation Acquire & Lease Acquire & Plant Lease & Plant Acquire & develop the land Operational gains Committed capital High High Low High Acquire & Develop the Land Lease & Plant Pioneer in Farmland Development Acquire & Plant Acquire & Lease Risk Replicating it s business model in Brazil, Bolivia & Paraguay 5

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

7 Cresud Diversified Rural Portfolio 23 Farms in the region BOLIVIA BRAZIL SOYBEAN SOYBEAN CORN SUGARCANE 1% 3 farms 9,875 ha 18% 7 farms 138,667 ha CORN SUGARCANE MEAT ARGENTINA PARAGUAY SOYBEAN SOYBEAN CORN MEAT 73% 12 farms 536,198 ha (*) 8% 1 farms 59,490 ha MEAT (*) Includes ha under concession in Argentina LEASING AS COMPLEMENTARY BUSINESS ( ha in Argentina & Brasil) 7

8 Current Portfolio Breakdown (Hectares) 852,792ha ~13% Leased Leased to 3rd Parties 9,603 has 2% Productive 390,997 has 46% Reserves 461,795 has 54% Legal Reserve 271,461 has 59% Sheep 8,702 heads 9% Livestock 187,113 has 48% Beef Cattle 93,591 heads 91% Soybean 45% Agriculture 194,281has 50% Sugarcane 17% Others 14% Corn 24% Development Potential 190,333 has 41% 8

9 Farmland Development Track Record Farmland Development Accumulated Ha Annual average developed ha 20,000 Development Potential 190,333 has Potential

10 Crops & Cattle Operational Track Record Planted area (Th. Has) Crop production (Th. Tn) FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 153,1 134,7 Meat production (Th. Tn) Heads (Thousands) 64,0 15,9 15,1 116,5 106,6 82,6 83,7 12,9 12,7 10,5 90,3 91,0 83,6 86,0 85,4 86,6 82,2 71,2 70,6 61,3 61,5 70,0 75,0 83,0 94,0 34,0 3,1 46,2 4,6 6,9 9,2 11,4 10,3 9,0 9,5 8,3 7,0 3,1 6,2 8,8 7,2 6,9 8,3 8,2 8,1 9,7 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 10

11 Farmland Real Estate Track Record Farmland Sales 1.5 farms per year Appreciation: +136% IRR (USD): 16% ,500 USD/Ha ,254 USD/Ha Corn Belt Land Value in USD/Ha Land Acquisitions USD MM Land Sales USD MM

12 Farmland Real Estate Track Record Farmland Sales 0.7 farms per year Appreciation: +225% IRR (BRL): 22% 1,343 USD/Ha ,536 USD/Ha Land Value in USD/Ha Land Acquisitions USD MM Sales of Land USD MM USD/Ha ,000 USD/Ha ,000 USD/Ha Farmland Sales 0.6 farms per year Appreciation: +62% IRR (USD): 15% ,250 USD/Ha 2,500 USD/Ha ,200 USD/Ha ,100 USD/Ha

13 Farmland Sales FY 2018 La Esmeralda Farmland USD 19.0 million (USD/ha 2,031) 8.0x BV La Suiza (partial sale) USD 10.0 million (USD/ha 1,000) 8.4x BV Araucaria (partial sale) BRL 61.6 million (BRL/ha 93,356) 5.6x BV June 2018 May 2018 June 2018 o Total area (ha): 9,370 o Productive area (ha): 8,430 o Book Value: USD 2.4 MM o IRR (USD): 17.8% o A sales contract has been signed o Total sold area (ha): 10,000 o Productive area (ha): 8,105 o Book Value: USD 1.2 MM o IRR (USD): 9.5% o Total sold area (ha): 956 o Productive area (ha): 660 o Book Value: BRL 11.0 MM o IRR (USD): 12.0% 13

14 Brasilagro Farmland sale (July 2018) Jatobá (Jaborandi BA) BRL million (BRL/ha 18,172) 9.1x BV o o o o Ha sold: 9,784 (7,485 productive ha) Book Value: BRL 18.1 MM (~BRL 2,418/productive ha) Sale Value: BRL MM (~BRL 23,754/productive ha) Accounting Result at Brasilagro: ~ BRL 97.3 MM (will be recognized in IQ 2019) o IRR (BRL): 14% o IRR (USD): 7% o Remaining area: 21,822 ha Area sold 14

15 Farmland Development Cases Los Pozos, Salta Argentina Turnaround of a Cattle farm into Cattle & Crop Farmland Cattle infrastructure Investment USD/ha ,000 heads in 44,000 ha Land Price: USD/ha 1,500 Has: 240,000 Bare Land Crop Investment USD/ha ,000 ha Beef Cattle Low productivity farm Technological Investment Low rainfalls levels & underground water resources (equipment, holes & irrigation system) Acquisition Cost USD/Ha 700 USD/Ha 2,000 Best Yielding Farm Land Price: ~ USD/ha 10,000 Acquisition Cost USD/Ha. 10 Land Price USD/Ha. 2,500 Agroriego, San Luis Argentina Turnaround of Undeveloped Land into a regular crop production Has: 7,052 15

16 Investment in FyO MAIN SERVICES Brokerage Derivatives Exports Specialties Freights & Logistics Trading Grain Elevator Consultancy Portfolio Management Training Cresud Stake: 50,1% VOLUME (Grain Traded Tons (Millions) MARKET SHARE (fyo s share / total commercialized in Argentina) Soybean Corn 16

17 Investment in Agrofy Online business platform 35.2% Equity stake AGROFY is an E-commerce company that pioneers in the Agribusiness sector 17

18 Investment in Carnes Pampeanas- Meatpacking Facility Brief description of the company Carnes Pampeanas is a beef processing company - staffed by a highly professional team - dedicated to the production of prime quality food products - starting from the highest quality cattle - fulfilling the most demanding quality standards. The beef packing plant is one of the country s most modern. It counts with all necessary permits for export to the demanding European and Asian markets, apart from providing quality beef cuts to Brazil and Chile. With the brand Carnes Pampeanas the company markets chilled and frozen beef, cattle offal and other byproducts. 18

19 Meatpacking: Location & technical conditions Strategic Location The following outlines the cattle stock of Argentina, detailed by province, where you can appreciate the strategic location of the plant in the area of highest density of cattle and this strategic component in trade policy and competitiveness plant. Due to its location in the city of Santa Rosa (La Pampa), the production comes from premium Angus and Hereford steers bred extensively in the fertile Pampas plains Stock vacuno > Technical conditions of meat packing plant The processing capacity is 9,600 heads per month It has all licenses and permits required by law. Fuente: Elaboración propia, en base a vacunación SENASA

20 Investment in IRSA: Leading Real Estate Company in Argentina Leading real estate company in Argentina with opportunistic assets abroad. Majority shareholder of IRSA Propiedades Comerciales, leading commercial Argentina with ~427,000 sqm of GLA located in premium locations. real estate company in Landbank to develop ~ 3 million sqm of prime real estate ~ 23 years listed in NYSE and BYMA 86.34% HOTELS SANTA MARÍA & OTHER LANDBANK INTERNATIONAL 29.91% SHOPPINGS MALLS OFFICE BUILDINGS VP 18.9% Dolphin 49.0% 98.7% 76.6% COMMERCIAL LANDBANK 20

21 Premium Portfolio of Shopping Malls City of Buenos Aires 16 Shopping Centers in Argentina ~ 344,000 sqm reaching 98.5% occupancy Book Value: USD 1,300 million Low income Area Mid Income Area High income Area Land reserve 21

22 Premium Portfolio of Offices Buildings City of Buenos Aires 7 Premium Offices in Argentina ~ 83,000 sqm reaching 92% occupancy Book Value: USD 322 million Expanding Corporate North Area Business Center AAA Location Back Office Center Land reserve 22

23 Huge Landbank Portfolio ~ 20 million sqm Tucumán: GLA 10,000e Paraná: 5,000 sqm Montevideo: 255,000 sqm La Plata: 117,000 sqm Montevideo (Uruguay) La Adela (Luján BA province) Neuquén: 18,000e Maltería Hudson: 177,000 sqm Puerto Madero (Santa María): 716,000 sqm Caballito: GLA 30,000 sqm San Martín: 160,000 sqm La Adela: 10,000 th. sqm Book Value: USD 460 million Caballito (BA City) Solares de Santa María (Puerto Madero BA City) San Martín (BA Province) 23

24 Investment in IDB & DIC (Israel) Largest and most well diversified conglomerate in Israel Controlling shareholder of Israel s largest telecommunications and supermarkets company. Controlling shareholder of PBC, leading real estate company in Israel Controlling shareholder of the 2nd largest insurance company in Israel 98.7% Indirectly* 76.6% IDBD bonds listed in Tel Aviv Stock Exchange as well as the equity of operational Subsidiaries 29.8% 18.1% 68.8% 33.5% 100% 50.3% 42.1% 64.4% 45.4% 51.7% 24

25 Cresud Stand Alone Debt as of June 30, 2018 Debt Description Agribusiness Amount (USD MM) Cresud Total Debt Cash & ST Investments 6.7 Debt repurchase 34.1 Cresud Net Debt In Feb-18, the Company has issued notes in the local capital markets for an amount of USD 113 MM at 6.5% fixed rate due 2023 to pay off short term debt 190,2 Debt Amortization Schedule (CRESUD- USD million) 113,2 71,2 10,9 4,

26 Land is our Value Thanks!