Institutional Presentation

Transcription

1 Institutional Presentation IIIQ 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% 63.8% Farms in Farms in Farms in ARGENTINA BOLIVIA BRASIL 100% 50.1% 100% 86.3% 100% 29.9% Farms in PARAGUAY 2

3 Pioneer Agribusiness Company with 81 years of history 1 st Latam Agricultural Company to be listed both in the US and Argentina Pioneer in farmland development business Follow on USD 288 M Owned + leased Has 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 IPO USD 276 M 840 (Th. Ha) +19% CAGR Mr. Eduardo Elsztain Appointed Chairman & Mr. Alejandro Elsztain CEO Follow on USD 64 M Foundation Follow on USD 92 M 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 24 Farms in the region BOLIVIA BRAZIL SOYBEAN SOYBEAN CORN SUGARCANE 1% 3 farms 9,875 ha 20% 7 farms 139,624 ha CORN SUGARCANE MEAT ARGENTINA PARAGUAY SOYBEAN SOYBEAN CORN MEAT 72% 13 farms 555,568 ha (*) 7% 1 farms 59,600 ha MEAT (*) Includes ha under concession in Argentina LEASING AS COMPLEMENTARY BUSINESS ( ha in Argentina & Brasil) 7

8 Current Portfolio Breakdown (Hectares) 839,984ha ~9% Leased Productive 375,657 has 45% Reserves 464,328 has 55% Livestock 185,646 has 49% Agriculture 190,011has 51% Legal Reserve 271,786 has 59% Development Potential 192,609 has 41% Sheep 8,099 heads 8% Dairy 762 heads 1% Beef Cattle 93,579 heads 91% Soybean 46% Sugarcane 13% Others 16% Corn 25% 8

9 Farmland Development Track Record Farmland Development Accumulated Ha Development Potential 190,214 has Annual average developed ha 20, E 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 153,1 134,7 Meat production (Th. Tn) Heads (Thousands) 116,5 106,6 34,0 3,1 46,2 4,6 64,0 6,9 15,9 15,1 12,9 12,7 82,6 83,7 10,5 9,2 90,3 91,0 11,4 10,3 83,6 86,0 85,4 86,6 9,0 9,5 8,3 7,0 82,2 3,1 71,2 70,6 6,2 8,8 61,3 61,5 7,2 6,9 83,0 70,0 75,0 8,3 8,2 8,1 PF 95 PF 96 PF 97 PF 98 PF 99 PF 00 PF 01 PF 02 PF 03 PF 04 PF 05 PF 06 PF 07 PF 08 PF 09 PF 10 PF 11 PF 12 PF 13 PF14 PF15 PF16 PF17 10

11 Farmland Real Estate Track Record Farmland Sales 1.5 farms per year Appreciation: +136% IRR (USD): 16% ,900 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 ,000 USD/Ha Farmland Sales farms per year 10,000 USD/Ha Appreciation: +62% IRR (USD): 15% ,250 USD/Ha 2,500 USD/Ha ,200 USD/Ha ,100 USD/Ha

13 Farmland Sales FY 2018E 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 July 2017 May 2018 May 2018 (deed on Jun 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 (BRL): 16.5% Results of these transactions will be recognized as of June 30,

14 Farmland Development Cases Los Pozos, Salta Argentina Turnaround of a Cattle farm into Cattle & Crop Farmland Has: 240,000 Bare Land Acquisition Cost USD/Ha. 10 Cattle infrastructure Investment USD/ha 250 Crop Investment USD/ha ,000 heads in 44,000 ha Land Price: USD/ha 1,500 13,000 ha Land Price USD/Ha. 2,500 Agroriego, San Luis Argentina Turnaround of Undeveloped Land into a regular crop production Has: 7,052 Beef Cattle Low productivity farm Low rainfalls levels & underground water resources Acquisition Cost USD/Ha 700 Technological Investment (equipment, holes & irrigation system) USD/Ha 2,000 Best Yielding Farm Land Price: ~ USD/ha 10,000 14

15 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 15

16 Investment in Agrofy Online business platform 40.2% Equity stake AGROFY is an E-commerce company that pioneers in the Agribusiness sector 16

17 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. 17

18 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

19 Investment in IRSA: Leading Real Estate Company Leading real estate company in Argentina with opportunistic assets abroad. Majority shareholder of IRSA Propiedades Comerciales, leading commercial real estate company in Argentina with ~424,000 sqm of GLA located in premium locations. Landbank to develop ~ 3 million sqm of prime real estate ~ 23 years listed in NYSE and BYMA 86.34% HOTELS SANTA MARÍA & OTHERS INTERNATIONAL 29.91% SHOPPINGS OFFICES VP 28.5% 100.0% 49.0% COMMERCIAL LANDBANK 19

20 Premium Portfolio of Shopping Malls City of Buenos Aires 16 Shopping Centers in Argentina ~ 343,000 sqm reaching 99 % occupancy Book Value: USD 1,800 million Low income Area Mid Income Area High income Area Land reserve 20

21 Premium Portfolio of Office Buildings City of Buenos Aires 7 Premium Offices in Argentina ~ 84,000 sqm reaching 91% occupancy Book Value: USD 338 million Expanding Corporate North Area Business Center AAA Location Back Office Center Land reserve 21

22 Huge Landbank Portfolio ~ 20 million sqm Tucumán: GLA 10,000e Paraná: 5,000 sqm Montevideo: 255,000 sqm Montevideo (Uruguay) Neuquén: 18,000e Puerto Madero (Santa María + Puerto Retiro): 798,000 sqm Puerto Retiro (BA City) Caballito: GLA 30,000 sqm San Martín: 160,000 sqm La Adela: 10,000 th. sqm San Martín (BA Province) La Adela (Luján BA province) Solares de Santa María (Puerto Madero BA City) Caballito (BA City) 22

23 Investment in IDB Development Corp. 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% IDBD bonds listed in Tel Aviv Stock Exchange as well as the equity of operational Subsidiaries 100.0% Dolphin 76.9% 100% 34.8% 64.4% 50.2% 50.3% 42.1% 45.4% 51.7% 23

24 Cresud Stand Alone Debt as of March 31, 2018 Debt Description Agribusiness Amount (USD MM) Cresud Total Debt Cash & ST Investments 74.7 Debt repurchase 39.1 Cresud Net Debt On 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 cancel short term debt 235,3 Debt Amortization Schedule (CRESUD- USD million) 68, ,5 8,6 2,

25 Land is our Value Thanks!