In Instit itutional Presentation IIQ FY 2019 Corporate Structure - - PowerPoint PPT Presentation
In Instit itutional Presentation IIQ FY 2019 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
IIQ FY 2019
Corporate Structure
Farms in BOLIVIA Farms in ARGENTINA Farms in PARAGUAY Farms in BRASIL
100% 50.1% 100% 100% 100% 43.4% 63.7%% 81.3% 29.9% 100% 77.1%
Indirectly
Bolivia and through its subsidiary Brasilagro, in Brazil and Paraguay
2
Pioneer Agribusiness Company with 82 years of history
1936 1960 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
20 (Th. Ha)
Follow on USD 288 M
Foundation
Argentina
+17% CAGR
Follow on USD 92 M IPO USD 276 M 852 (Th. Ha)
Owned + leased Has
Follow on USD 64 M
Appointed Chairman & Mr. Alejandro Elsztain CEO
Agribusiness Market’s Strengths
The increase in the demand for food will need an expansion of productive areas (108 mm ha)
24,3% 39,4% 61,2% 75,7% 60,6% 38,8%
From 1967 to 1987 From 1987 to 2007 From 2007 to 2018
Increase in areas Productivity Gain
Only 3% of the surface of the Earth would be land available for agriculture
Lack of Supply Excess of Demand
9 Bn inhabitants to be fed by 2050 mostly coming from developing countries
The region has the main resources (land & water) to meet the increasing demand
South America Strengths Productivity Increase not Enough
Agribusiness Market’s Strengths
Acquire & Develop the Land Acquire & Plant Acquire & Lease
Return
Pioneer in Farmland Development
Acquire & Lease Acquire & Plant Lease & Plant Acquire & develop the land Benefit from farmland price appreciation
+ +
Operational gains
+ +
Committed capital
High High Low High Risk
Replicating it´s business model in Brazil, Bolivia & Paraguay
Lease & Plant
Cresud Business Strategy
FARMLAND DEVELOPMENT FARMING ACTIVITY
Bare Land Cattle Urban Property Specialties / Agriculture Agriculture
Time Value Creation ROIC Stable Yielding
Farmland Development Farming Activity
Time
Cresud Diversified Rural Portfolio – 23 farms in the region
BOLIVIA 1% 3 farms 9,875 ha BRAZIL 18% 7 farms 128,781 ha PARAGUAY 8% 1 farms 59,490 ha ARGENTINA
73%
12 farms 536,188 ha (*)
(*) Includes 132.000 ha under concession in Argentina
CORN SUGARCANE SOYBEAN MEAT CORN SOYBEAN CORN SUGARCANE SOYBEAN MEAT SOYBEAN MEAT
LEASING AS COMPLEMENTARY BUSINESS
(137,917 ha in Argentina & Brasil)
Current Portfolio Breakdown (Hectares)
Sheep
10,387 heads
10%
872,251 has
~16% Leased
Productive
427,402 has
49%
Reserves
444,849 has
51%
Livestock
121,386 has
28%
Agriculture
168,099has
40%
Development Potential
173,388 has
39%
Legal Reserve
271,461 has
61%
Beef Cattle
93,299 heads
90%
Corn
29%
Soybean
50%
Sugarcane
11%
Leased to 3rd Parties
137,917 has
32%
Others
10%
Farmland Development Track Record
27.421 40.576 59.625 88.124 119.111 147.321 170.974 191.274 206.674 218.274 226.474 239.774 250.484 258.984
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019e Potential
Development Potential
173,388 has
Annual average developed ha
20,000
1994-2006
Crops & Cattle Operational Track Record
482 368 86 119 13 30 69 20 133 160 105 128 70 73 156 115 187 288 322 452 596 469 435 568 589 484 612 532 16 36 74 65 47 46 37 44 23 32 41 46 54 87 148 146 188 206 206 212 214 179 205 209 257 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19E
Planted area (Th. Has)
Crop production (Th. Tn)
3,1 4,6 6,9 15,9 15,1 12,9 12,7 10,5 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 34,0 46,2 64,0 153,1 134,7 116,5 106,6 82,6 83,7 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 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Meat production (Th. Tn) Heads (Thousands)
Farmland Real Estate Track Record
2,254
15,900
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
14.1 13.5
2.5
21.1
6.8
25.2
9.0
30.0 17.2
9.2
4.1
1.0
10.6 5.7
5.0
7.3
30.0 1.3 25.0
4.8
18.0 8.9
6.7 6.0
29.0
Corn Belt Land Value in USD/Ha Land Acquisitions USD MM Land Sales USD MM
Farmland Sales 1.5 farms per year Appreciation: +136% IRR (USD): 16% Farmland prices USD/ha
Farmland Real Estate Track Record
1,200 USD/Ha 2,500 USD/Ha 12,000 USD/Ha 10,000 USD/Ha
1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
13.2 29.0 3.6 4.2 7.0 14.2 15.0
11.9
Farmland Sales 0.6 farms per year Appreciation: +62% IRR (USD): 15%
1,343 USD/Ha 9,536 USD/Ha 7.090 USD/Ha
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
31.3
27.1
89.0 24.7 38.3 13.7 17.5 21.5 111.1 23.9
Land Value in USD/Ha Land Acquisitions USD MM Sales of Land USD MM
Farmland Sales 0.7 farms per year Appreciation: +225% IRR (BRL): 22% 51.4 15.9
2019
47
1,100 USD/Ha 3,250 USD/Ha
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Regional Farmland Sales
7 12 34 8 62 14 8 5 7 7 3 13 14 28 13 72 20 39 47*
10 8 1 5 21 26 62 21 134 34 46 52 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IIQ 2019
Profit USD M Book Value USD M
Brasilagro’s partial sale of Jatobá was not recognized at CRESUD level since it was already valued at fair value as Investment Property (leased to third parties)
13
9,784 has (BRL/ha 18,172)
“Jatobá” partial sale
103 has (BRL/ha 77,670)
“Alto Taquarí” partial sale
Profit: BRL 5.8 million
IRR (USD): 17.1% IRR (USD): 7.1%
IQ 2019 IIQ 2019
Farmland Sales Evolution
USD mm
BA Jatoba (Jaborandi) MT Alto Taquari
*USD 47mm considers the full price transaction of Jatobá & Alto Taquari financed partial sales (Present Value USD 31 mm).
Remaining has: 21,197 Remaining has: 5,291 (productive 3,476 ha)
Farmland Development Cases
Cattle infrastructure Investment USD/ha 250
Turnaround of a Cattle farm into Cattle & Crop Farmland
Los Pozos, Salta Argentina Has: 240,000
Bare Land
Acquisition Cost USD/Ha. 10
Crop Investment USD/ha 650
Technological Investment
(equipment, holes & irrigation system)
USD/Ha 2,000 35,000 heads in 44,000 ha
Land Price: USD/ha 1,500
13,000 ha
Land Price USD/Ha. 2,500
Best Yielding Farm Land Price: ~ USD/ha 10,000 Beef Cattle – Low productivity farm
Low rainfalls levels & underground water resources
Acquisition Cost USD/Ha 700
Turnaround of Undeveloped Land into a regular crop production
Agroriego, San Luis Argentina Has: 7,052
Technological Investment
(equipment, holes & irrigation system)
USD/Ha 2,000
Investment in FyO
VOLUME (Grain Traded Tons (Million)
Logistics
Management
MARKET SHARE (fyo’s share / total commercialized in Argentina)
Cresud’ Stake: 50,1%
MAIN SERVICES
Soybean Corn
Investment in Agrofy Online business platform
AGROFY is an E-commerce company that pioneers in the Agribusiness sector
Agrofy: Online agribusiness platform
After two years
Agrofy achieved that 5,00 000 comp mpan anies es listed more than 50 50,000 000 pr prod
ucts consulted by 1.2 millio lion month nthly ly buy uyer ers in 10 10 different nt items ms
Agrofy empowers farmers and agribusiness companies with its leading marketplace and digital products.
Vision
Horizontal Ag Marketplace
We cover all categories that are relevant for farmers.
Ag Fintech
Developing financing credit solutions to improve transactions
Global Ambition
Our business model is highly scalable.
Ag Logistics solution
Working with 3rd parties to automate logistics for each category.
Collecting data
We analyze millions of data to help our customers improve their transactions and improve business.
Online marketing
Best digital marketing team with ag expertise.
Agrofy: Future regional expansion
Central Hub 2020
BUILDING TRACTION
Local commercial team generates liquidity through basic memberships.
VALUE GENERATION
Capitalize on multinational clients to open new markets.
LEAN GROWTH
Leverage central hub in argentina to streamline processes and control costs.
BRAND EXPOSURE
Along with digital marketing campaigns, agrofy will be present at all principal agro events and expos.
Leveraging a superior product and back- end infrastructure based in Argentina, Agrofy will scale efficiently across the
2020 2019 2018 2018 2018 2018
2019
Investment in Carnes Pampeanas- Meatpacking Facility
Carnes Pampeanas is a beef processing company
products
Brief description of the company
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.
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 Technical conditions of meat packing plant
1 190.000 190.001
–
1.000.000 1.000.001 2.500.000 > 2.500.001 Stock vacuno
Fuente: Elaboración propia, en base a vacunación SENASA 2011
– –
29.9% 81.1% VP 18.9% Dolphin 49.0%
HOTELS SANTA MARÍA & OTHER LANDBANK INTERNATIONAL SHOPPINGS MALLS OFFICE BUILDINGS COMMERCIAL LANDBANK
98.7% 77.1% 63.74%
USA and Israel.
leading commercial real estate company in Argentina with ~447,000 sqm of GLA located in premium locations.
IRSA at a glance
21
Premium Portfolio of Shopping Malls
High income Area Mid Income Area Low Income Area
USD 121 MN LTM EBITDA USD 1.1 BNBook Value
22
Premium Portfolio of Office Buildings
Expanding Corporate North Area Business Center AAA Location Back Office Center
USD 18 MM LTM EBITDA USD 0.3 BNBook Value
200 Della Paolera (FY 2020)
~USD 8MM Zetta Building (2H FY2019)
~USD 6MM
23
Premium mixed-use Landbank for future developments
San Luis Neuquén Montevideo (Uruguay) Paraná Tucumán Pereiraola Caballito Pilar Pontevedra Mariano Acosta Merlo La Adela Puerto Retiro UOM Lujan La Plata Coto Abasto (espacio aéreo) Predio San Martín Maltería Hudson
Argentina BA Province
USD 460 MN
Santa María del Plata
BA City
~ ~ 70 700,0 0,000 sq sqm of f Pr Premium Real l Es Esta tate to
be de deve veloped d in n the he be best t locatio tion of f BA City ity (Approvals ls pe pend ndin ing) 24
Investment in IDB & DIC Israel
100% 77.9% Indirectly*
68.8% 100% 25.3%** 19.3% 43.9% 67.5% 59.5% 26.0% 45.4% 51.7%
* There is a non recourse intercompany loan between Dolphin (borrower) and IDB (lender) due to the transference of DIC shares. This loan is guaranteed with DIC shares sold. ** 29.6% stake sold through local swap transactions, holding economic rights for 54.9%. Energy Tourism Insurance Financial Investments Telecommunications Agriculture Rental Properties Real Estate Technology Supermarket Working to reduce one more layer of public companies before December 2019, according to Concentration Law requirement
La Larg rgest and most well ell dive iversified conglomerate e in in Isr Israel
Israel’s largest
telecommunications’
and supermarkets’
company.
PBC, leading real estate
company in Israel
the 2nd largest
insurance company in
Israel
Aviv Stock Exchange as well as the equity of operational Subsidiaries
25
Net Debt as of December 31, 2018*
(USD million)
CRESUD Net Debt 395.5
*Does not include IRCP & IDB/DIC debt
In November 2018, we issued a local Bond for USD 73.6 mm at a fixed annual interest rate of 9.0% due November 2020 to refinance short-term debt 126.9 84.2 84.5 4.7 113.0
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
www.cresud.com.ar ir@cresud.com.ar