Cresud Sa · BCBA:CRES
Cresud Sa — Santander's 24th Annual Latin American Conference 2020
49 slides from Cresud Sa's conference presentation, January 2020
Slide 1: Santander's 24th Annual Latin American Conference
Santander’s 24th Annual Latin American Conference January 14th to 16th, 2020 1
Slide 2: Corporate Structure
Corporate Structure FLOAT BYMA 37.6% 43.3% 62.4% Voting rights: 82.3% 100% Through 82.3% 29.9% 46.48% Dolphin 2
Slide 3: Premium Portfolio of Shopping Malls
Premium Portfolio of Shopping Malls BA City Argentina High income Area Mid Income Area Low Income Area USD 92 MN LTM EBITDA USD 659 MN Book Value as of Sep´19 3
Slide 4: Premium Portfolio of Office Buildings
Premium Portfolio of Office Buildings USD 30 MM LTM EBITDA USD 433 MM Book Value BA City as of Sep´19 200 Della Paolera (IVQ FY20) Est. EBITDA ~USD 10-12 MM Expanding Corporate North Area Business Center AAA Location 4 Back Office Center
Slide 5: Rental properties' resilient revenue model
Rental properties’ resilient revenue model Shopping Malls Revenue from leases Other revenues Rent revenue breakdown Non Traditional Advertising Other 13,4% ARS linked to % Sales inflation Admission % Sales rights 12,5% Brokerage fee % Sales Parking Stands Base rent ~5x monthly base rent 50,1% “Key m
Slide 6: Shopping Malls Operating Figures
Shopping Malls Operating Figures Shopping Malls – Sqm GLA (Th.) & Occupancy (%) Same Shopping Malls’ Sales (% Var i.a.) Nominal terms Real terms 46,2% 99% 99% Mainly due to 12,600 sqm vacancy generated by 35,1% Walmart in DOT Baires Shopping 94% 28,7% 29,6% 27,3% Excluding 24,4% 24,7% 21,2% 22,3% 22
Slide 7: Same Shopping Malls' Sales – Quarterly Real Term Growth
Same Shopping Malls’ Sales – Quarterly Real Term Growth 30,0% Consumption trends by Type of Business (% Var i.a.) 20,0% 19,5% 10,0% -4,6% 0,0% -5,1% -6,0% -10,0% -9,8% Competitors -11,8% -20,0% Clothes and Footwear Restaurant Electronic appliances Sales recovery driven by Government consumption -30,
Slide 8: Shopping Malls historical figures evolution
Shopping Malls historical figures evolution 43% 43% 40% 36% 34% Occupancy (%) 21% 17% 15% 11% Tenants sales growth (ARS/sqm)* Inflation + GDP (%) -5% -18% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 * Excluding DOT Baires 8 Source: Indec
Slide 9: Shopping Malls historical sales in USD
Shopping Malls historical sales in USD (as of June 30) 31% AR$ depreciation 0.5% real GDP growth 60% AR$ depreciation Tenants sales 8.148 (2.3%) real GDP contraction (USD/sqm) 7.469 7.465 6.998 6.333 10% AR$ 6.429 depreciation 0.1% real GDP ~100% AR$ growth depreciation 4.961 241% AR$ 4.345 deprecia
Slide 10: Office Buildings Operating Figures
Office Buildings Operating Figures Occupancy by Class Offices - Stock (sqm GLA) A+ & A 98,7% 100,0% 98,5% 97,6% 96,6% +26.0% 100,0% 86,3% B 82,8% 79,6% 145,640 +39.0% 200 Della 46,2% 30,000 Paolera IQ 16 IQ 17 IQ 18 IQ 19 IQ 20 Offices - Leases USD/sqm/month - 1.1% Zetta Building 115,640 115,640 84,
Slide 11: A+ Office sector BA City - historical evolution
A+ Office sector BA City - historical evolution BA Market A+ Office 96,5% Occupancy (%) 94,0% 93,8% 96,4% 93,6% 91,0% 37,4 36,0 31,7 BA Market A+ Office rent USD/sqm 78,0% 28,0 25,9 11,0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 201
Slide 12: Active portfolio management
Real Estate Acquisitions & Sales Track Record Active portfolio management Intercontinental Capital control period 5.000 Avg IRR: ~ 10-20% 4.500 A+ Offices prices Maipú USD/sqm Intercontinental Rulero Boston Tower Bouchard Plaza Bouchard Plaza Dique IV 2.450 Rulero Bouchard 710 Flight to quality Yach
Slide 13: Real Estate prices' increase despite no mortgages
Real Estate prices’ increase despite no mortgages 3.420 3.405 3.050 Protective way of saving Residential prices Mortgages/GDP (USD/sqm – Recoleta) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 13 Source: Reporte inmobiliario
Slide 14: City of Buenos Aires – Residential market statistics
City of Buenos Aires – Residential market statistics 1993 – 2019: Number of signed deeds 2009 – 2019: Number of mortgages granted (thousands) Mar-16 Launch of UVA 77 mortgage loans 75 May-18 2001 -2002 73 Nov-11 to Dec-15 72 71 Devaluation 70 Crisis 69 Capital controls period 67 68 Aug/Sep-19 64 64
Slide 15: Zetta Building Opening
ZETTA BUILDING OPENING 32,000 GLA sqm May 2019 Opening date USD 60mm Investment USD 9mm Est. EBITDA 20% 80% 15
Slide 16: Zetta Building - Interior
ZETTA BUILDING - INTERIOR 16
Slide 17: Intecons Building, Dot Baires and nearby buildings
Intecons Building Exa Building (planning status) Dot Baires Shopping Dot Connection (planning status) Giga Building (planning status) Dot Building Zetta Building Philips Building (future recycling) Coca Cola Building Panamerican Plaza 17
Slide 18: Della Paolera
200 DELLA PAOLERA Under development 35,000 GLA sqm 87% IRCP stake 82.8% Works Progress (as of Nov 30, 2019) IVQ FY20 Est. Opening date USD 90mm Est. Investment USD 10-12mm Est. Estabilized EBITDA 21% Commercialization Progress 18
Slide 19: Shopping malls' Expansions
Shopping malls´ Expansions Alto Palermo City of Buenos Aires Highest sales/sqm shopping mall 51% Work Progress* *As of December 31, 2019 3,900 sqm GLA US$28.5mm FY2021 estimated investment opening 19 date
Slide 20: Mixed-use Projects' approvals
Mixed-use Projects’ approvals CABALLITO BA City 23,000 sqm ~ 76,000 & ~ 11,000 Buildable Residential & Retail sqm LA PLATA Greater BA 78,000 sqm ~ 100,000 Buildable Residential & Commercial sqm 20
Slide 21: Argentina Business Center - Hotels
Argentina Business Center - Hotels Intercontinental Llao Llao Resort Libertador BA city Bariloche city BA city Rate USD/room & Occupancy evolution EBITDA (ARS MM) 68,4% 64,5% 61,6% - 34% 142 190 189 167 94 21 IQ18 IQ19 IQ20 IQ19 IQ20
Slide 22: Premium mixed-use Landbank for future developments
Premium mixed-use Landbank for future developments Argentina BA Province BA City Coto Abasto (espacio aéreo) Predio La Adela San Martín Pilar Maltería Hudson Tucumán Merlo Puerto Retiro La Plata UOM Lujan Mariano Acosta Pereiraola Paraná Pontevedra San Luis Montevideo Caballito (Uruguay) Santa María
Slide 23: Israel Business Center Current Corporate Structure
Israel Business Center Current Corporate Structure Senior Management: Concentration Law Resolution: ▪ In September 2019, the company's board of directors ▪ Disposal of 16.7% of Gav-Yam shares approved the appointment of Eran Saar as IDB & DIC CEO Accounting deconsolidation and loss of control ▪ Priv
Slide 24: Clal sale process
FY18 FY19 IQ20 IIQ20 Clal sale process Aug-19: Control Mar-19: Control permit requested permit requested pulled back Jun-18 Aug-18 Jun-19 Sep-19 Nov-19 Dec-19 0n September 2nd and 3rd , 3% of 0n November 7th, 0n December 16th In May, 2 private swaps were sold and IDB sold an IDB sold 5% to and 18th
Slide 25: Israel Business Center Shares' performance evolution
Israel Business Center Shares’ performance evolution YoY YoY Yoy YoY -51.9% -15.9% 16.7% 0.8% 4.000 8.000 40.000 3.000 Repurchase program: Shares for up to NIS 120 mm 3.000 Period: 1 year (until Dec-2019) 6.000 30.000 2.250 Remaining floating capital stock: no less than 10.1% 2.000 4.000 20.000 1.50
Slide 26: PBC & Gav Yam Leading Real Estate companies
PBC (68.8% DIC stake) & Gav Yam (34.9% PBC stake) Leading Real Estate companies in Israel Matam Park - Haifa Herzeliva North 1,160,000 sqm in Israel 670,000 sqm Office & hi-tech park Land reserve Commercial & Retail Industrial & Logistics HSBC Building - Manhattan 97% Properties under construction o
Slide 27: Real Estate projects under development in Israel
Real Estate projects under development in Israel 8 Projects TOHA: 95% already leased. Opening during 2H FY 2019 194,000 sqm REHOVOT: 3 of 4 buildings finished MATAM-YAM: Recently finished Amazon main tenant The New Haifa Bay – Logistic Center Opening during 2H FY 2019 NEGEV: 3 of 4 buildings finishe
Slide 28: Shufersal: Israel's Leading Food Retailer
Shufersal (26.0% DIC stake): Israel’s Leading Food Retailer New Pharm recent acquisition Private Label - % of Total Sales 2nd largest pharmacy chain in Israel ✓Traded on TASE 25,1% 25,1% 24,6% ✓Operates 338 stores nationwide 24,0% 24,0% • Shufersal: 274 stores 22,2% • New Pharm: 64 stores ✓Holds a r
Slide 29: Largest Telecommunications Provider
Largest Telecommunications Provider (44.1% DIC stake) ✓Israel’s largest cellular provider – 2.8 million subscribers ✓ Fastest growing company in TV, internet & 26% market share fixed line services: ✓Competition: • ISP Service for 685k households • Operates in competitive environment -5 cellular prov
Slide 30: Israel Business Center Financial situation
Israel Business Center Financial situation • Due to IDB financial situation, on September 2019, IRSA invested NIS 70 mm in IDB through Dolphin and committed to invest an additional NIS 140 mm (half in 2020 and half in 2021) subject to certain conditions. USD 555 mm USD 765 mm Operational USD mm cash
Slide 31: Financials
G CRESUD IRSA COMMERCIAL, PROPERTIES Financials 31
Slide 32: Financial Figures
Financial Figures As of September 30, 2019 Debt Amortization Schedule Debt USD 550 mm Net Debt USD 347 mm USD 203 mm Cash 368.1 Net Debt / EBITDA LTM 3.1x LTM Adjusted EBITDA USD 112 mm 148.5 LTM NOI USD 138 mm 22.7 10.8 LTM Adjusted FFO USD 80 mm FY 2020 FY 2021 FY 2022 FY 2023 Net Asset Value (USD
Slide 33: Amortization Schedule
Net Debt as of September 30, 2019* (USD millions) IRSA Net Debt 364.5 Financial events: ▪In August 2019, we issued a second tranche of the Class 1 issued in May for USD 85,2 mm at an 8.75% yield, and a new class in Chilean Pesos for an equivalent of USD 45 mm at an Amortization Schedule interest rat
Slide 34: Payment of IRSA's Series VIII
Payment of IRSA´s Series VIII (Argentine Law) “Payment Currency: U.S. Dollars” “Payments of principal, interest, additional amounts or other amounts due under Series VIII Notes will be made through Caja de Valores S.A. as depositary of the Global Certificate, by transferring the relevant amounts for
Slide 35: Thanks!
fa) crSsup Thanks! PROPIEDADES, COMERCIALES:
Slide 36: Pioneer Agribusiness Company with 83 years of history
Pioneer Agribusiness Company with 83 years of history • 1st Latam Agricultural Company to be listed both in the US and Argentina Follow on USD 288 M • Pioneer in farmland development business Owned + leased Has 856 • More than 1,235 employees in agriculture related operations (Th. Ha) • Due Diligenc
Slide 37: Cresud Business Strategy
Cresud Business Strategy FARMLAND DEVELOPMENT FARMING ACTIVITY Urban Property Stable Yielding Value Creation ROIC Specialties / Agriculture Farmland Development Agriculture Farming Activity Cattle Bare Land Time Time 37
Slide 38: Cresud Diversified Rural Portfolio
Cresud Diversified Rural Portfolio – 23 farms in the region 855,850 has ~16% Leased BOLIVIA BRASIL Productive Reserves 1% 18% 414,907 has 440,943has 3 farms 7 farms Others Leased to 3rd 48% 52% 9,875 ha 124,523 ha Parties Legal Reserve 13,816 has 271,461 has 3% 62% Owned ARGENTINA PARAGUAY 31% 73% A
Slide 39: Planted Area Evolution
Planted Area Evolution (in thousand hectares) FY 2020E Crop Breakdown 13% 12% Historical Record +8% 51% 268 10 +14 leased 248 to third 24% 8 14 parties 15 212 211 206 206 8 4 6 198 199 Soybean Corn 188 3 21 179 7 7 104 3 24 22 16 14 Sugarcane Others 16 95 22 6 148 146 59 69 16 10 1 68 58 66 17 58 68
Slide 40: Farming: Crop & Cattle Production
Farming: Crop & Cattle Production Crop Production Sugarcane Production Meat Production & Cattle Heads (Th. Tn) (Th. Tn) (Th. Tn & Th. Units) Beef cattle production (Th. Tn) 78 Millares Paraguay Bolivia Bolivia Cattle Heads (Th) 99 15 Brazil Argentina +51.5% Brazil +15.0% 812 94 11.1 2,182 6 24 29 1,
Slide 41: Farmland Sales
Farmland Sales Partial Sales Jatobá Alto Taquarí MT BA Date of sale September 2019 October 2019 Alto Taquari Jatobá Total: 1,134 ha Total: 85 ha Area (hectares) (Jaborandi) Productive: 893 ha Productive: 65 ha Acquisition Price + R$1.7 MM R$1.2 MM CAPEX 302 bags/ha 1,100 bags/ha Nominal Sale Price R
Slide 42: Farmland Real Estate Track Record
Farmland Real Estate Track Record 8.9 18.0 Farmland Sales Farmland prices 6.7 29.0 1.5 farms per year USD/ha Appreciation: +136% 6.0 IRR (USD): 16% 15,900 4.8 25.0 1.3 7.3 5.7 5.0 10.6 1.0 6.8 25.2 30.0 2.5 30.0 Corn Belt Land Value in 2,254 9.0 4.1 USD/Ha 17.2 21.1 9.2 Land Acquisitions USD MM 13.5
Slide 43: Farmland Real Estate Track Record
Farmland Real Estate Track Record 13.7 9,536 USD/Ha 38.3 Farmland Sales 24.7 89.0 67 17.5 0.7 farms per year Appreciation: +225% 27.1 15.9 5.5 IRR (BRL): 22% 7.090 USD/Ha Land Value in USD/Ha 31.3 111.1 21.5 Land Acquisitions USD MM 1,343 USD/Ha 51.4 Sales of Land USD MM 23.9 2001 2002 2003 2004 200
Slide 44: Farmland Development Cases
Farmland Development Cases Los Pozos, Salta Argentina Turnaround of a Cattle Cattle infrastructure 35,000 heads in 44,000 ha farm into Cattle & Crop Investment USD/ha 250 Land Price: USD/ha 1,500 Farmland Has: 240,000 Bare Land Crop Investment 13,000 ha Acquisition Cost USD/Ha. 10 USD/ha 650 Land Pr
Slide 45: Investment in FyO
Investment in FyO ARS 450 million ARS 284 million MAIN SERVICES Operating Result Net Income ▪ Brokerage ▪ Freights & ▪ Consultancy ▪ Derivatives Logistics ▪ Portfolio +176% vs. FY 18 +231% vs. FY 18 ▪ Exports ▪ Trading Management Cresud’ Stake: 50,1% ▪ Specialties ▪ Grain Elevator ▪ Training MARKET
Slide 46: Investment in Agrofy
Investment in Agrofy Leading in LATAM in the next 3 years Oct-19: New capital round for USD 12.9 million 2020 ▪ Cresud subscribed USD 2 million & Brasilagro USD 1 million 2020 2018 Ownership Company current valuation: 3.4mm consolidated monthly 2019 USD 42.9 million sessions, being the most visited
Slide 47: Meatpacking facility
Meatpacking facility Our meatpacking facility is in the vicinity of the city of Santa Rosa, Capital of the Province of La Pampa, Argentina, in the heart of the Pampas plain, an area that for its climate and pastures, is considered the best for breeding and the fattening of cattle ranch. Dedicated to
Slide 48: Amortization Schedule
Net Debt as of September 30, 2019* (USD million) CRESUD Net Debt 444.0 Financial events: ▪In July 2019, we issued Series XXV notes in the local capital markets for an amount of USD 59.6 million at a fixed interest rate of 9.0%, payable semiannually, maturing in July 2021. Amortization Schedule 150.8
Slide 49: Shares buyback programs
6.7% repurchased in 2 years Shares buyback programs • FY 18: 4.1% • FY 19: 2.6% 25 USD USD USD USD USD 9.2 Mn 14.5 Mn 36 Mn 8 Mn 7 Mn 20 15 New program 10 launched in August 2019 for up to ARS 300 Mn 4.3 5 0 49
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