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Institutional Presentation
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
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
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 onUSD 288 M
Foundation
• 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 Diligence for more than 4 million ha in the region
• 3 leading farmland development cases in Harvard Business School
+17% CAGR
Follow on USD 92 M
IPO USD 276 M
852(Th. Ha)
Owned + leased Has
Follow onUSD 64 M
Mr. Eduardo ElsztainAppointed 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 SupplyExcess of Demand
9 Bn inhabitants to be fed by 2050 mostly coming from developing countries
3% 9 Bn
+
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
Re
turn
Pioneer in Farmland Development
Acquire & Lease Acquire & Plant Lease & PlantAcquire & 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
Val
ue
Cre
atio
n
RO
IC
Stable Yielding
Farmland Development
Farming Activity
Time
Cresud Diversified Rural Portfolio – 23 farms in the region
BOLIVIA
1%3 farms9,875 ha
BRAZIL
18%7 farms
128,781 ha
PARAGUAY
8%1 farms
59,490 ha
ARGENTINA
73%
12 farms536,188 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)
Sheep10,387 heads
10%
872,251 has~16% Leased
Productive427,402 has
49%
Reserves444,849 has
51%
Livestock121,386 has
28%
Agriculture168,099has
40%Development Potential173,388 has
39%
Legal Reserve271,461 has
61%
Beef Cattle93,299 heads
90%
Corn
29%
Soybean
50%
Sugarcane
11%
Leased to 3rd Parties137,917 has
32%
Others
10%
Farmland Development Track Record
27.42140.576
59.625
88.124
119.111
147.321
170.974
191.274206.674
218.274226.474
239.774250.484
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 3069
20
133160
105128
70 73
156115
187
288
322
452
596
469435
568589
484
612
532
1636
7465
47 4637 44
23 3241 46 54
87
148 146
188 206 206
212214
179205 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)
3,14,6
6,9
15,915,1
12,912,7
10,59,2
11,410,3
9,0 9,58,3
7,0
3,1
6,2
8,87,2
6,9
8,3 8,2 8,19,7
34,0
46,2
64,0
153,1
134,7
116,5
106,6
82,6 83,790,3 91,0
83,6 86,0 85,4 86,682,2
71,2 70,661,3 61,5
70,075,0
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
17.29.2
4.1
1.0
10.6
5.7 5.0
7.3
30.0
1.3
25.0
4.8
18.08.9
6.7
6.0
29.0
Corn Belt Land Value in USD/Ha
Land Acquisitions USD MM
Land Sales USD MM
Farmland Sales1.5 farms per year
Appreciation: +136%IRR (USD): 16%
Farmland pricesUSD/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
4.27.0
14.215.0
11.9
Farmland Sales0.6 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
89.024.738.3
13.7
17.5
21.5111.1
23.9
Land Value in USD/Ha
Land Acquisitions USD MM
Sales of Land USD MM
Farmland Sales0.7 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 1234
8
62
148 57 7
0 3
13 14
28
13
72
20 39 47*10 8 1 5
21 26
62
21
134
3446
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
BRL 177.8 million9,784 has (BRL/ha 18,172)
“Jatobá” partial sale
BRL 8.0 million103 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 EvolutionUSD 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 infrastructureInvestment USD/ha 250
Turnaround of a Cattlefarm into Cattle & CropFarmland
Los Pozos, SaltaArgentina
Has: 240,000
Bare LandAcquisition 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 haLand Price: USD/ha 1,500
13,000 haLand Price USD/Ha. 2,500
Best Yielding FarmLand Price: ~ USD/ha 10,000
Beef Cattle – Low productivity farmLow 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)
Brokerage Derivatives Exports
Specialties Freights &
Logistics
Trading Grain Elevator Consultancy
Portfolio Management
Training
MARKET SHARE (fyo’s share / total commercialized in Argentina)
Cresud’ Stake: 50,1%
MAIN SERVICES
Soybean
Corn
Investment in Agrofy
Online business platform
35.2% Equity stake
AGROFY is an E-commerce company that pioneers in the Agribusiness sector
Agrofy: Online agribusiness platform
After two years of operations Agrofy achieved that 5,000
companies listed more than 50,000 products consulted by 1.2
million monthly buyers in 10 different items
We are building
an e-commerce
ecosystem
around
agribusinessAgrofy 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
2020BUILDING
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
region. Currently in Brazil.
2020
2019
2018
2018
2018
2018
Leading in LATAM
in the next 3 years
2019
Investment in Carnes Pampeanas- Meatpacking Facility
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.
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
• The processing capacity is 9,600 heads per month
• It has all licenses and permits required by law.
0
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
LANDBANKINTERNATIONAL
SHOPPINGSMALLS
OFFICEBUILDINGS
COMMERCIAL LANDBANK
98.7% 77.1%
63.74%
• Leading diversified real estate company with assets in Argentina, USA and Israel.
• Controlling shareholder of IRSA Propiedades Comerciales, leading commercial real estate company in Argentina with ~447,000 sqm of GLA located in premium locations.
• Landbank to develop ~ 3 million sqm of prime real estate
• 25 years listed both in Buenos Aires and NYSE
IRSA at a glance
21
Premium Portfolio of Shopping Malls
High income AreaMid Income AreaLow Income Area
USD 121 MN LTM EBITDAUSD 1.1 BN Book Value
BA City Argentina
22
Premium Portfolio of Office Buildings
Expanding Corporate North AreaBusiness CenterAAA LocationBack Office Center
USD 18 MM LTM EBITDAUSD 0.3 BN Book Value
BA City
200 Della Paolera(FY 2020)
Est. EBITDA~USD 8MMZetta Building
(2H FY2019)Est. EBITDA~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 LujanLa Plata
Coto Abasto
(espacio aéreo)Predio
San Martín
Maltería
Hudson
Argentina BA Province
USD 460 MN
Book Value
Santa María del Plata
BA City
~20 MN SQM
Land Surface
~ 700,000 sqm of Premium Real Estate to be developed in the best location of BA City (Approvals pending)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 InsuranceFinancial
InvestmentsTelecommunications
Agriculture Rental Properties
Real Estate Technology Supermarket
Working to reduce one more layer of public companies before December 2019, according to Concentration Law requirement
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
• IDBD bonds listed in Tel 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 mmat 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
Amortization Schedule
www.cresud.com.ar