Presentacin LRS Generalities Oct2010-Final copia

8/7/2019 Presentacin LRS Generalities Oct2010-Final copia

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GrupoLa Redencin Sofro


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Grupo La Redencin Sofro

A Characterization

October 2010


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Started up in Estancia La Redencin, located in Inriville, Crdoba in 1884Basic business model:

Articulation of the relationship between input suppliers, financialproviders and land owners under a productive model of excellence

Production on rented land located accross different geographic regions Management of agricultural land for thrid parties. Leveraging on production know how, Company has developed what

was originally considered marginal lands . Presence in Crdoba, Santa F, Santiago del Estero, Chaco y Entre

Ros. Growing projection in Formosa. Storage and grain handling facilities in Inriville, Crdoba

Recognized leadership in the agricultural sector Awarded the Best Agricultural Producer award in 2008 (VI Premio La

Nacin - Banco Galicia para la Excelencia Agropecuaria). Recognized for the management of human resources by other firms in

the same market segment.

Characterization


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Characterization (Cont.)

High standards in quality and productive innovations ISO 9001:2000 (processes in agricultural production, grain storage andprocessing facility and marketing).

ISO 14000 (environment) y ISO 18000 (security and health) in theprocess of being implemented.

Strong Commitment to Corporate Social Responsability Establishment of the Fundacin La Redencin Siembra conciencia, cosecha valores ( Sowing conscience, harvesting

values) as Company principle Active grassroot involvement in all regions where they are present

Project of rationalizacing the social structure under the shareholders

consideration


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A solid network

Suppliers Farm Owners Clients

Don Mario; Monsanto

Cargill; SyngentaDow Agrosciences

Crop Inputs

Contractors

76 rented farms

Cargill

ZeniFYOLos Grobo

Graincommercialization

CrdobaSantander

PatagoniaGaliciaHSBC

Banks

FrancsStandard Bank

HipotecarioCMF


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..that leverages on strategic alliances..

CRESUD

Shared-risk production in the Northern area of Buenos Aires and Subtropicalarea. Weve been forging this alliance for 5 years and, nowadays, 10,000hectares are being managed.

DON MARIO

Alliance for the multiplication of Wheat and Soybean seeds. Planting of supervised seeds that contributes to the progress of the agricultural-appliedtechnology.

DOW AGROSCIENCES

Production of High Oleic Sunflower in the North-Eastern area, during the2005/06 campaign.

FARM OWNERS

Variable lease/hybrid agreements that reflect crop actual yields


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Board of Directors

Marcos Rodrigu (*) - Rogelio Fogante (*) - Teo Zorraquin Hctor Cecci

Santiago Rodrigu (*) Miguel Garca Haymes Marcela Rodrigu (*) Alberto Cecci (*)

CEO

Marcos Rodrigu

AGRICULTURALPRODUCTION

COMMERCIALIZATION AND LOGISTICS

ADMINISTRATION FINANCE HUMANRESOURCES

Claudio Romero Ins Rodrigu Germn Feli Mara LauraAlzapiediMariela

Crescimbeni

(*) Shareholders of Grupo La Rendencin Sofro

..and a defined management structure


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Geographic presence biased towards the newagriculture frontier

DriversGreater growth potential of yields with technologyapplication in subtropical areas(from 26 qq/ha to 45 qq/ha insoybean).We possess the know-how andthe experience to take this road.Less competence in subtropicalenvironments, facilitating long-term lease agreements, within asustainable framework.

Leases 2,5 times lower than inthe center area, allowing for alesser need of working capital.Crops harvest and availability atmoments of less offer, allowingfor higher sale prices

SubtropicalDry

850 mm

SubtropicalHumid

1100 mm

Hum

id Pa

mpas

( 950 m

m of

rainfa

ll);

28%

of pla

nted a

rea

72% of planted

area


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..leveraging on the application of know how..

TimeTime

Yield Ta rget

Yield Ta rget

(qq/ha)

(qq/ha)

NoNoTillTill

RotationRotation

FARMING KNOWFARMING KNOWHOWHOW

LRSLRSApproachApproach

Tech.Tech. MgmtMgmt

TraditionalTraditionalsystemsystem

Implementation of new technologieswithin a sustainableframework.

Application of specifictechnological

packages for eachenvironment.

No-till farming in100% of the area.

Knowledge creation

and managementthrough theExperimental Farms( Chacras Experimentales )model, now adoptedby AAPRESID .


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..that results in sustainable higher yields

Soybean yield evolution:LRS vs. Argentina Corn yield evolution:LRS Corn vs. Argentina

Source: http://www.siia.gov.ar/index.php/series-por-tema/agricultura


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..and product diversification

Crop Production

Evolution (tons)

Crop AcreageEvolution (Has)

Wheat 2 Soybean 1 Soybean 1 Corn WS Soybean 2 Corn


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Risks mitigation via a structured approach


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..and systematic incorporation of lessons learned

Learning CurveMainly in subtropical areas. We improved the agronomic risk reading, and now wecould concentrate our production in safer areas within that risk.

On site presence

we learned that, at the operational level, the organizational chart should havelocal actors. In this context we got firmly established in the different areas of production.

ProfessionalizationWe learned about the importance of having a functional organizational structure

with well defined areas and responsibilities with clear objectives, high operationalefficiency, dynamics.

Integration among areasWe had important advances regarding the goal of working in a coordinated waybetween the areas behind a common project.


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Final Considerations


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Why La Redencin Sofro?

Character

Specific and differential regional know-how

Valuable and unique network of commercial partners

Strong growth capabilities & motivation

Board of directors with solid experienceHighly-competent and motivated managers and their teams

Flexibility to adapt to a changing environment

Leading technology in agricultural production

Successful experience in land transformationHighly respected in the agribusiness community

Corporate Culture


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Thank you

GrupoLa Redencin Sofro

Presentacin LRS Generalities Oct2010-Final copia

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