FY 2014 PLAN Conference 2011 Call September 09, 2014

Transcription

1 BUSINESS FY 2014 PLAN Conference 2011 Call September 09, 2014 Hosted by: Alejandro Elsztain, CEO Carlos Blousson, General Manager of Argentina & Bolivia Matías Gaivironsky, CFO

2 Highlights for FY 2014 o FINANCIAL RESULTS o Revenues: ARS 4,604.0 million (+30.5% vs. FY 2013) o Operating Income: ARS 1,185.2 million (+ 7.1% vs. FY 2013) o Net Loss: ARS 1,092.8 million (vs. Gain of M during FY 2013) (mainly due to exchange rate differences and net financial results) Corresponding to the Cresud s shareholders: Loss of ARS 888, 4 million o OPERATING RESULTS o 3 Farm sales for ~ USD 36.8 M (1 partial) o Planted Area FY14 : 206,000 ha (compared to 201,000 ha during 2013) o o o Developed Area FY14: 15,378 ha Good campaign in Argentina & Paraguay due to weather conditions Bolivia & Brasil suffered bad climate conditions o SEASON 2015: We expect to plant similar area than 2014 campaign 2

3 Planted and Developed Area* In th. hectares Planted Area Evolution FY 08 FY 09 FY 10 FY11 FY12 FY13 FY 14 In th. hectares Argentina Brazil Bolivia Paraguay Transformed Area Evolution , , , FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Argentina Brazil Paraguay *Includes our interest in AgroUranga and our Partner s stake in Paraguay Farms and double crop 3

4 Farmland Regional Prices HISTORICAL FARMLAND PRICES In USD/ha ARGENTINA CORN BELT (USD/ha) BRASIL MATTO GROSO (USD/ha) PARAGUAY CORN BELT (USD/ha) BOLIVIA CORN BELT (USD/ha) USA IOWA (USD/ha) CAGR ( 02-14) 15.4% 17.1% 19.6% 13.8% 12.1% 22,050 20,375 VAR ( 14-13) -2.1% -5% 10, % 11,825 5,147 5,120 12,000 0% 2,500, ,100 1,542 4,000 1, % Source: CAT & FNP Acquisition in Brasil Acquisition in Bolivia & Paraguay 4

5 Annual appreciation of our Farmland Portfolio LAND PRICE APPRECIATION PER REGION Last 12 months - ARGENTINA LAND PRICE APPRECIATION PER REGION Last 12 months - BRAZIL Average: 0% Average: 18% RR AP Average: 0% AC AM RO PA Average MT +16.1% TO MA Average +14.9% BA PI CE RN AL SE PB PE Average: -3% BOLIVIA PARAGUAY MS GO SP MG RJ ES PR Average +6% Average Developed: +11% Undeveloped: +67% RS SC : Federal District 4 Source: CAT, FNP Jan/Feb

6 Farmland Sales during FY 2014 PARAGUAY (in USD million) BRAZIL (in BRL million) BOLIVIA (in USD million) Boquerón State GO Mineiros 41.3 Santa Cruz de la Sierra % CRESCA (70,965 ha) - Dec13 Araucaria BRASIL (1,164 ha) - Jun ,2 2,0 San Cayetano BOLIVIA (880 ha) - Jun14 NO GAIN RECOGNITION Appreciation = 386% Appreciation = 395% Acquisition cost + CAPEX Land Appreciation Gain IRR (USD)= 15.5% IRR (USD) = 25.0% 6

7 Last 5yr Farmland Sales: Improving margins in USD 332, ,6 4, ,5 118,3 29, ,1 91,4 54,6 63,2 13,7 FY 10 FY 11 FY 12 FY 13 FY 14E 149, ,5 57,1 Profit (ARS MM) BV (ARS MM) Profit USD/ha Farms Sold

8 Subsequent Event: Brasil sells fraction of Cresca Farm Sale fraction of Paraguay Farm Total undeveloped area sold: 24,624 ha Acquisition price (dec/13): USD/ha 350 Sale price (Jul/14): USD/ha 600 Farms Asuncion Total area: 141,000 ha. Arable area: 71,931 ha. 8

9 Subsequent Event: La Adela Farm Sale Sale to IRSA at ARS 210 million (~ USD/ha 24,000) Book Value: ARS 10 million (21X) High urbanistic potential for future real estate development Acquired in 1943 Located 60km from BA City in a closed community Area 50km BA BA City Urban cities Closed communities Avge Price Plot of Land: USD/sqm 25 60km BA NO GAIN RECOGNITION 9

10 Farming activity: Mixed weather conditions in the region South America Good weather conditions in Argentina Drought in Bahia (Brazil) Good weather conditions in Paraguay Excess of Water in Bolivia 10

11 Crop Production Crop Production* (Th Tonnes) % 1% 3% Crop Breakdown (In ha) 4% 9% FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014E Yields Evolution (tn/ha) Argentina Brazil Bolivia Paraguay % 59% FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Soybean Corn Soybean Wheat Sugar Cane Leased to 3rd Parties Corn Sunflower Other *Excluding sugar cane production ** Includes production from previous season 11

12 USDA Estimations and Season Results Soybean - 3% 14% 8% -5% -1% / / /2015E Argentina Brazil USA Var % YoY Commodity Prices (USD/tn) Corn Var % YoY / / /2015E Argentina Brazil USA Hedge status (June 30, 2014) Soybean Corn Soybean Corn

13 Investment in other Subsidiaries 0,1 0,3 0,5 Grain Trading (Tn million) 0,7 0,7 0,8 1,1 1,6 1,7 2,0 2,4 +22% Given its urban development and its proximity to the city of Villa Mercedes (San Luis), we closed and moved the feedlot activity by the end of the FY to our cattle activity farms in the North of Argentina PF 04 PF 05 PF 06 PF 07 PF 08 PF 09 PF 10 PF 11 PF 12 PF 13 PF 14E Fyo 7% Market Share % Others 93% Source: Bolsa de Comercio Rosario (2013) Net income FY 14: ARS 7,6 million (vs ARS 4,4 million last year) Dividends for a total amount of ARS 3.4 million Positive results after 3 yrs of losses Cuota Hilton 100% used Slaughtering Capacity: From to heads/mth Net Income FY 14: ARS 5,5 million (vs Loss of ARS 21,6 last year) 13

14 IRSA: Urban Real Estate Segments Figures in ARS MM Revenues by Segment EBITDA by Segment 26% 17% -30% 47% 122% 20% 23% 39% -785% -95% Shoppings Offices S&D Hotels International FY 13 FY 14 EBITDA Margins Shoppings Offices S&D Hotels International FY 13 FY 14-4 EBITDA Breakdown Shoppings* Offices* Hotels S&D 2% 1% FY % 71.2% -1.6% 44.2% FY %(1) 69.9% 7.6% 61.9%** var YoY - 3,5 pp -1,6 pp 9,2pp +17,7 pp (1)Excluding one timer effect of the Incentive stock Plan for employees of the company, Shoppings FY14 EBITDA margin increased to 77.2% in FY14 from 76.9% in FY13 14% 17% 68% Shoppings Offices S&D Hotels International Excluding common maintenance common expenses and promotional funds ** Considering Revenues of Investment Properties, 14

15 Gross Profit by Segment FY 2014 Gross Profit by Segment and Farmland Results ARS million 38% -76% 404% 164% -37% -39% 1671% 114% ,9 149, , , ,2 74,4 FY 14 FY , ,7 18,8 13,3 14,9 12,4 11,8 11,1 4,7 4,2 Grains Sugarcarne Catlle Milk Leases Farmland Sales Agroindustrial Others-Fyo 15

16 Cresud s Income Statement FY % Exchange Rate Evolution (ARS/USD) % 8,133 4,527 5,388 1,106.4 Financial Results ARS million 1, FY 14 FY 13 1, , ,092.8 Operating Income Net Financial Results Net Loss Net Exchange Rate Losses 16

17 Real estate Assets historically correlated to USD Farmland - Argentina Corn Belt (USD/ha) A+ Office Prices - BA (USD/sqm)

18 Cresud s Consolidated Debt June 30, 2014 Description Amount (USD MM) Cresud Total Debt IRSA Total Debt APSA Total Debt Brasilagro Total Debt 54.7 Consolidated Total Debt 1,065.7 Consolidated Cash Debt Repurchase 32.8 Consolidated Net Debt Net Debt/ Assets (BV): 46.9% New debt issuance at the local market Series XVII Note: Issued in ARS up to 75 million Badlar+Spread, quarterly basis Bullet in 18 months Series XVIII Note (Dollar Link): Issued in USD, equivalent to ARS 75 mm Principal in 2 installments, 54 and 60 months 4% fixed rate quarterly basis Cresud Standalone Debt Amortization Scheduled In USD Million 92,8 107,4 127,4 2,0 18,5 9, o Share Repurchase Plan for up to ARS 200 million or 5% of the shares outstanding o We paid dividends for a total amount of ARS 120 million 18

19 Contact Information ALEJANDRO ELSZTAIN CEO MATÍAS GAIVIRONSKY - CFO Tel +(54 11) Corporate Offices Intercontinental Plaza Moreno Floor Tel +(54 11) Fax +(54 11) C1091AAQ - City of Buenos Aires - Argentina NASDAQ Symbol: CRESY BASE Symbol: CRES Contact ir@cresud.com.ar Independent Auditors PricewaterhouseCoopers Argentina Tel +(54 11) Bouchard 557 7º Floor C1106ABG City of Buenos Aires - Argentina Cautionary Statement Investing in all equities, including natural resources and real estate-related equities, carries risks which should be taken into consideration when making an investment. This institutional presentation contains statements that constitute forward-looking statements, in that they include statements regarding the intent, belief or current expectations of our directors and officers with respect to our future operating performance. You should be aware that any such forward looking statements are no guarantees of future performance and may involve risks and uncertainties, and that actual results may differ materially and adversely from those set forth in this presentation. We undertake no obligation to release publicly any revisions to such forward-looking statements to reflect later events or circumstances or to reflect the occurrence of unanticipated events. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements can be found in the companies Forms 20-F for Fiscal Year 2013 ended June 30, 2013, which are available for you in our websites. 19