Cresud Sa · BCBA:CRES
Cresud Sa — Investor Presentation (2024)
45 slides from Cresud Sa's investor presentation, 2024
Slide 1: Institutional Presentation FY 2024
Institutional Presentation FY 2024 1
Slide 2: Group Corporate Structure
Group Corporate Structure More Than 30 Years Investing In Real Assets FLOAT 61.0% 100% 35.4% 51.2% 17.7% 55.4% Farms in Argentina Farms in Agricultural Agricultural Urban Business Brazil, Bolivia & Paraguay Commercial Services Agtech 29.9% 2
Slide 3: CRESUD At A Glance
CRESUD At A Glance CREciendo en Pioneer In Farmland Real Estate State of the art farmer with proven track record rotating SUDamérica the portfolio. Management of great experience and unique Growing in South America skills. Leading Agricultural Company Controller of IRSA Managing an approximately 800
Slide 4: Leading Agribusiness In The Region Since 1994
Leading Agribusiness In The Region Since 1994 Historical Milestones Foundation Current Management Expansion to Brazil BrasilAgro listed on NYSE Takes Control IPO USD 276 MM 1960 1997 2008/9 2020/21 1936 1994 2006 2012 2023 Listed on BYMA Listed on NADAQ Expansion to Bolivia & Paraguay Transference o
Slide 5: Current Regional Agribusiness Portfolio
Current Regional Agribusiness Portfolio Through CRESUD, Brasilagro & Subsidiaries Under Management 865,600 ha 71% owned, 14% leased & 15% LT concession 27 Farms Across The Region Productive hectares 419,000 ha 60% crop & 40% cattle 445,000 ha Land Reserves BrasilAgro farms CRESUD farms Leased farms
Slide 6: Farmland Portfolio Evolution
Farmland Portfolio Evolution Expanding Our Agribusiness Model From Argentina To The Region 880 865,602 Th. Ha. 132 15% LT Concessions 120 14% Leased 564 477 325 613 71% Owned 20 1994 1995 1998 2006 2010 2024 Growth In Argentina Regional Expansion Development & Sale Phase Consolidating The Model 6
Slide 7: Investment in BrasilAgro
Investment in BrasilAgro CRESUD’s Stake: 35.4% CONSOLIDATING OUR VEHICLE FOR REGIONAL EXPANSION IN BRAZIL CRESUD’s Investment In BrasilAgro Farmland Acquisitions and Sales Acum. Acquired Ha 321 321 43,3% 43,3% 43,3% After warrants exercise 300 310 39.4% 39,8% 39,4% Acum. Sold Ha 267 267 267 37,9% 24
Slide 8: Investment in IRSA
Investment in IRSA (IRSA:BYMA & IRS:NYSE) 30 YEARS DEVELOPING, ACQUIRING & OPERATING REAL ESTATE IN ARGENTINA CRESUD’s stake: 55.4% CRESUD’s Investment In IRSA 63.4% After Merge with IRCP 1 ~480K Rental Sqm Across Argentina 57.5% 56.8% 56.9% 55,4% 15 Shopping Malls 49.9% 2 67% Market Share In BA Cit
Slide 9: Agribusiness Strategy
Farming Activity 1 Producing Food For A Growing Population Agricultural Commercial Services 2 Complementing Traditional Farming With Services, Trading and AgTech Agribusiness Strategy Farmland Real Estate 3 Adding Value To The Land & Rotating The Portfolio ESG Commitment 4 Sustainability In Our Oper
Slide 10: Farming Activity: Producing Food For A Growing World Population
1.Farming Activity: Producing Food For A Growing World Population Feeding more than 4 million people per year What? Grains, sugarcane, meat & wool Where? In owned and leased farms in South America How? With sustainable practices & state of the art technology 10
Slide 11: Farming Activity: Regional Planted Area Evolution
1.Farming Activity: Regional Planted Area Evolution Planted Surface (In Th. Has) Breakdown By Crop 283 283 Others 278 279 277 Leased to 18% 262 14 24 Wheat 24 28 21 3rd parties 14 Bolivia 3% 12 11 Paraguay Sugarcane 47% Soybean 10% 226 12 7 220220217 +10% 213208 22% 197 Corn CAGR 181 109120 Brazil 1
Slide 12: Farming Activity: Regional Crop Production Track Record
1.Farming Activity: Regional Crop Production Track Record Grain Production (In Th. Tn) Sugarcane Production (In Th. Tn) 844 828 813 798 764 2.411 707 2.215 2.150 2.123 612 2.039 2.053 +14.8% 596 589 359 1.901 147 111 Bolivia 568 362 Region 1.814 182 CAGR 536 304 469 483 452 Brazil 435 1.229 1.157 32
Slide 13: Farming Activity: Improving Yields Through The Use Of Technology
1.Farming Activity: Improving Yields Through The Use Of Technology Soybean Yields (In tn/ha) Corn Yields (In tn/ha) Argentina Brazil Avg. Argentina Brazil Avg. 4,00 8,00 3,50 7,00 6,65 3,08 6,38 2,89 2,85 2,92 6,10 6,23 3,00 2,78 2,66 2,66 6,00 5,64 5,74 5,73 5,74 5,74 2,60 2,50 2,19 2,21 4,85 5,00
Slide 14: Farming Activity: Cattle, Complete Cycle Including Feedlot
1.Farming Activity: Cattle, Complete Cycle Including Feedlot Cattle (In Th. Heads) 153,1 134,7 116,5 106,6 99,0 94,0 90,3 91,0 82,6 83,7 83,6 86,0 85,4 86,6 82,2 83,0 75,0 74,0 76,0 75,5 71,2 70,6 70,0 71,3 64,0 61,3 61,5 63,1 46,2 34,0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 200
Slide 15: Farming Activity: State Of The Art Technology Applied To Our Production
1.Farming Activity: State Of The Art Technology Applied To Our Production Sustainable Production Use Of Technology No-till Farming Artificial Intelligence •Soil conservation & carbon retention Platform for agricultural management •Efficient use of inputs (mainly fertilizers & agrochemicals) Extensiv
Slide 16: Agricultural Commercial Services
2.Agricultural Commercial Services CRESUD’s Stake: 51.2% Complementing Traditional Farming Traded Tons Evolution & Market Share With Services, Trading and AgTech (In MM tons & %) 1999 fyo.com Start up 6,44 6,65 8,24% 6,80 Partnership 5,76 2000 with CRESUD 5,10 5,48 6,07% 4,00 2003 Barter and Supplie
Slide 17: Farmland Real Estate
2.Farmland Real Estate Due Diligence Of More Than 10 MM Hectares Across The World 17
Slide 18: Farmland Real Estate: Acquisition, Land Appreciation and Sale
2.Farmland Real Estate: Acquisition, Land Appreciation and Sale Farmland Prices in Argentina (In USD/ha) 8.9 18.0 Corn Belt Land Value (In USD/Ha) 6.7 29.0 Land Acquisitions (USD MM) 6.0 14,300 Land Sales (USD MM) 8.6 4.5 6.1 4.8 25.0 1.3 7.3 5.7 5.0 10.6 1.0 6.8 25.2 30.0 2,254 2.5 4.1 30.0 Farmlan
Slide 19: Farmland Real Estate: Acquisition, Land Appreciation and Sale
2.Farmland Real Estate: Acquisition, Land Appreciation and Sale Farmland Prices in Brazil (In USD/ha) 13.7 120 73 Corn Belt Land Value (In USD/Ha) 22.848 52.8 51.9 17.5 Land Acquisitions (USD MM) 13.7 38.3 24.7 89.0 27.1 12.4 14.332 67.2 Land Sales (USD MM) 17.5 18.8 31.3 111.1 21.5 4.6 Farmland Sal
Slide 20: Farmland Real Estate: Adding Value To The Land
2.Farmland Real Estate Adding Value To The Land & Rotating Optimized Portfolio 2.4x Sold farms per year PROFIT BOOK VALUE 134 17k Sold ha per year 122 3.0% 72 Sold portfolio per year 75 67 Farms sold Los Pozos El Tigre Chaparral 62 103 during FY 24 (IQ 24) (IQ 24) (IVQ 24) 52 46 48 Surface sold 28 4
Slide 21: ESG Commitment: Main Goals
3.ESG Commitment: Main Goals Environmental Social Governance Sustainable production Promotion of development and To continue with the improvement of the quality of development of the Corporate Biodiversity and environment life of our communities Governance model protection Promotion of gender equali
Slide 22: ESG Commitment: Sustainable & Digital Agriculture
3.ESG Commitment Sustainable & Digital Agriculture: Technology Applied To Our Production Precision planting, agriculture by No-till farming & Cover environments & intelligent Irrigation equipment: Drip cropping agrochemicals application & sprinkler systems (WEEDSEEKER) Drones for digital harvest Com
Slide 23: ESG Commitment: Environmental Certifications
3.ESG Commitment: Environmental Certifications On Farms, Crops & Products Soybean Environmental Management 40% OF SOYBEAN PRODUCTION CRESUD ARGENTINA EL TIGRE & LA GRAMILLA FARMS AGRORIEGO FARM LA PAMPA - ARGENTINA SAN LUIS – ARGENTINA (2012 – 2022) Cotton Wool 8 DE JULIO SANTA CRUZ ARGENTINA 23
Slide 24: ESG Commitment: Farmland Natural Reserves
3.ESG Commitment Farmland Natural Reserves Protecting Biodiversity & Environment NATURAL RESERVES IN ARGENTINA Private natural reserve in 4,700 ha Los Pozos farm (Salta) Reserve for penguins and native 2,000 ha fauna in 8 de Julio (Santa Cruz) For native birds in Agroriego 15 ha (San Luis) Breakdown
Slide 25: ESG Commitment: Social Contribution to our Communities
3.ESG Commitment: Social Contribution to our Communities Focus on Infrastructure, Education & Health WE ARE PART OF THE COMMUNITIES WHERE OUR FARMS ARE LOCATED We have built 1 school in “Los Pozos” farm, and we Social Group Investment work with 16 schools in 5 provinces where our farms are located.
Slide 26: ESG Commitment: Our Federal & Diverse Team
3.ESG Commitment: Our Federal & Diverse Team Promoting Inclusion & Equality in Agriculture Employees Across Argentina 133 355 81% men, 19% women 31 5 21% Up to 30 years 11 5 22 65% From 31 to 50 years 121 19 14% More than 50 years Gender Iniciatives 8 26
Slide 27: ESG Commitment: Corporate Governance
3.ESG Commitment: Corporate Governance The Only Agricultural Company Listed both on NASDAQ & BYMA Listed company in BA & NYC Independent Audit Committee (BYMA 1960 ; NASDAQ 1997) Float: 63.0% Ethics Code & Committee Independent Whistleblower One Class of Common Shares Hotline One Vote per Share Acti
Slide 28: Commodities Outlook & LATAM Strengths
Commodities Outlook & LATAM Strengths
Slide 29: International Commodities Prices
International Commodities Prices (USD cents per bushel) USD cents per bushel 2000 SOYBEAN CORN BOOM POST-COVID & RUS/UKR WAR 1800 Since Jun-23 (var %) -38% -34% +112% 1769 1600 SOYBEAN Since Dec-23 (var %) -25% -22% 1400 1200 Downtrend -45% (2H23) 1000 970 +161% 801 800 600 -54% 400 367 200 CORN 0 2
Slide 30: Commodities Outlook: USA & World Stock/Consumption Ratio
Commodities Outlook: USA & World Stock/Consumption Ratio Soybean Corn 35% 35% 31,1% 30% 30% 25,9% 25% 25% 22,3% 20% 20% 15,3% 15% 15% 12,8% 10% 8,8% 10% 5,8% 5% 5% 0% 0% 93/94 95/96 97/98 99/00 01/02 03/04 05/06 07/08 09/10 11/12 13/14 15/16 17/18 19/20 21/22 11/12 19/20 93/94 95/96 97/98 99/00 01/0
Slide 31: Farmland Prices Historical Evolution
Farmland Prices Historical Evolution Region and USA (In USD/ha) 28.267 USA - Iowa Argentina - BA Corn Belt 21.909 Brazil - Mato Grosso 14.583 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201
Slide 32: Regional Agribusiness Strengths: South America excess of water resources
Regional Agribusiness Strengths: So u t h Am e r i ca exc es s o f water res o u rces p er ca p i ta Per Capita Renewable Freshwater Resources (m3) Freshwater Stress Levels Water withdrawals as a share of internal resources South America 30,428 Oceania 29,225 Eastern Europe 21,383 North America 12,5
Slide 33: Regional Agribusiness Strengths: LATAM growing importance as food supplier
Regional Agribusiness Strengths: L ATAM g ro wi ng i m p o r tan ce a s a wo r l d fo o d s u p p l i er Crops Net Trade by Region in Constant Value 2008-2010 2018-2020 2030 100 75 80 70 55 45 36 15 -20 -22 -18 -25 -35 -40 -45 -60 -85 -100 Europe & North America LATAM Asia Pacific Middle East & Sub-
Slide 34: Loss of Argentine competitiveness despite best LATAM soil conditions
Loss of Argentine competitiveness despite best LATAM soil conditions Soybean Production: Brazil Impressive Growth Argentina & Brazil Top Agri Exporters (In million tons) AGRI INDUSTRY ARGENTINA BRAZIL 83 91 107 107 117 120 121 97 115 122 116 % of GDP 17% 27% 46% 73 91 91 84 87 81 84 38% % employment
Slide 35: Argentine Case
Argentine Case Regional Highest Productivity Offset by Governmental Regulations BEST QUALITY OF LAND CROPS TAX EXPORTS • 33% SOYBEAN SUSTAINABLE CROP PRODUCTION • 12% CORN & WHEAT • No-till farming • Precision planting FX SPREAD • Cover cropping • ~100% SPREAD BETWEEN OFFICIAL FX & BLUE-CHIP SWAP LO
Slide 36: CRESUD Financial Performance
G CRESUD inancial Performance F
Slide 37: Agribusiness Adjusted EBITDA Evolution
Agribusiness Adjusted EBITDA Evolution By Agribusiness Segment (In USD MM) FARMING 191 FARMLAND SALES 18 SERVICES 139 59 11 123 105 30 23 100 93 11 9 18 75 25 57 36 45 115 97 70 69 9 48 43 31 12 PF 17 PF 18 PF 19 PF 20 PF 21 PF 22 PF 23 PF 24 37
Slide 38: Consolidated Adjusted EBITDA Evolution
Consolidated Adjusted EBITDA Evolution By Segment (In USD MM) Real Estate (IRSA) 391 Agribusiness 277 191 265 275 237 224 200 100 174 75 139 123 93 105 200 175 165 162 142 131 138 95 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 38
Slide 39: Dividends Received From Subsidiaries
Dividends Received From Subsidiaries By Agribusiness Segment (In USD CCL MM) ~91.0 26.1 may-24 63.0 AgroUranga 28.2 40.1 may-23 38.3 0.5 oct-23 Others 4.0 (Uranga Trading 7.8 nov-22 & FyO Acopio) 2.5 0,8 3.7 35.6 24.5 ~22.0 FY 22 FY 23 FY 24 39
Slide 40: CRESUD Stand Alone Debt Profile
CRESUD Stand Alone Debt Profile (As of June 30, 2024. In USD Million) Net Debt Evolution Amortization Schedule NET DEBT EVOLUTION GROSS DEBT 318.4 -29.2% 421 396 383 Subsequent Issuance (Jul-24) Series XLVI - USD 28.6 MM - Dollar linked - Interest rate: 1.5% 298 - Maturity: Jul-27 129.8 125.6 88.6 2
Slide 41: Net Asset Value (NAV)
Net Asset Value (NAV) USD Million (at Official FX) LTV 14.4% 227 298 516 331 2.071 Market Cap 1.773 507 P/NAV 997 0.29x IRSA NAV BrasilAgro NAV Farmlands in Other investments Gross Asset Value Net Debt Net Asset Value Argentina + biological Assets 41
Slide 42: Dividends & Treasury Shares Distribution
Dividends & Treasury Shares Distribution DIVIDENDS In USD CCL MILLION FY 24 Oct-23 May-24 IN CASH IN KIND IN CASH Amount ARS 22,000 MM 22,090,627 ARS 30,000 MM IRSA shares ~65.7 Per Ordinary share ARS 37.4364 0.03759 ARS 50.5482 IRSA shares Per ADS ARS 374.3644 0.37591 ARS 505.4821 27.0 IRSA shares
Slide 43: Enterprise Value & ADS price Evolution
Enterprise Value & ADS price Evolution USD million & USD 16,63 13,62 12,67 11,99 10,95 11,05 9,35 8,22 8,50 1.329 7,36 6,01 6,23 5,57 4,70 1.092 1.007 1.012 2,71 952 988 963 848 807 788 691 721 680 598 572 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY23 FY24 Current 43
Slide 44: Group Capital Markets Track Record
Group Capital Markets Track Record NUMBER OF CAPITAL AMOUNT ISSUED GROUP LISTED VEHICLES NON-DEFAULT HISTORY MARKETS TRANSACTIONS +200 +USD 18bn 4 New York, Buenos Aires, & Sao Paulo Even in the worst Argentinean crisis (2001) & COVID-19 IRSA IPO APSA IPO (now IRCP) CRESUD LIABILITY LOCAL MARKET DOL
Slide 45: Contact Us
Contact Us Our Website Our Email Our Phone Our Address Our Twitter www.cresud.com.ar ir@cresud.com.ar (+54) 911 4323-7449 Della Paolera 261 @CRESUDIR 9th floor