San Pedro Farm Entre Ríos, Argentina Alejandro Elsztain, CEO Carlos Blousson, General Manager of Argentina & Bolivia Matías Gaivironsky, CFO

Transcription

1 FY16 Conference Call September 09, 2016 San Pedro Farm Entre Ríos, Argentina Hosted by: Alejandro Elsztain, CEO Carlos Blousson, General Manager of Argentina & Bolivia Matías Gaivironsky, CFO

2 Highlights for FY16 First annual results consolidating the investment of our subsidiary IRSA in IDB Development Corporation Financial Consolidated Results FY16 orevenues: ARS 35.4 billion (ARS 7.2 billion coming from agribusiness and Argentina Urban Business Center) ooperating Income: ARS 3.7 billion (ARS 3,0 billion coming from agribusiness and Argentina Urban Business Center) onet Income: Loss of ARS 2.5 billion (Loss of ARS 421 million coming from agribusiness and Argentina Business Center) o To Cresud Shareholders: Loss of ARS 1,4 billion (vs. Loss of ARS 114 million in FY15) Agribusiness o New goverment measures in Argentina improving profitability despite a low commodity prices environment o Good weather conditions in Argentina, Bolivia & Paraguay. Strong drought in Brazil (Bahia & Piaui) o Farming Operating Income grew by ARS 562 million in FY16 despite reduction on planted Area due to farmland sales during FY15 o No Farmland Sales during FY16. As a subsequent event, we sold a farm in Argentina for USD 6 million o Developed Area FY16: 8,850 ha Urban & Investments o Positive results coming from IRSA Rental segment & Sales of Investment Properties 2 o During FY16 IRSA acquired the minority interest of IDBD increasing the 2 stake to 68.3% and delisted the company 2 2

3 New goverment measures improving profitability Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Reduction / Cut in Crop Export Taxes 14% 24% 28% 35% 43% 35% 30% 10% 20% 25% 20% 10% 20% 28% 28% 28% 23% 0% 0% March 2002 April 2002 January 2007 November 2007 March 2008 July 2008 December 2015 March 2002 April 2002 November 2007 December 2008 December 2015 March 2002 April 2002 November 2007 March 2008 July 2008 January 2009 December 2015 Cut in Meat Export Taxes (15%) Free Export Market for Meat Currency Depreciation FY % FY % Main Impacts Potential increase in Crop, Cattle and Agroindustrial margins Potential decrease on land transformation costs 3

4 Planted & Developed Area FY 2016 Planted Area (Th. Ha) % % FY12 FY13 FY 14 FY15 FY16 FY17E 27,2 3,5 13,7 10,0 20,3 1,0 11,8 7,5 Argentina Brazil Bolivia Paraguay Developed Area (Th. Ha) 15,4 0,0 13,0 11,6 2,4 8,8-24% 1,4 7,5 4,4 +47% 2,4 1,7 3,0 1,8 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY2017E 12,9 1,5 9,6 Argentina Brazil Paraguay Total *Includes 100% Brasilagro and double crop & Agrouranga 34

5 Regional Farmland Prices USD/ha Regional Farmland Prices USD/ha Argentina - Corn Belt (USD/Ha) Brasil - Mato Grosso (USD/Ha) Paraguay - Corn Belt (USD/Ha) Bolivia - Corn Belt (USD/Ha) Farmland Sales (USD million) 133, ,6 26, , Book Value USD M Profit USD M 21, ,0 5 1 IQ

6 Subsequent event: Farmland Sale in Argentina Farmland Sale (ARS Million) 93,6 Profit BV 78,5 15,1 Sale at 6x BV IRR (USD): 4% Results will be recognized during IQ17 6

7 News on Foreign Land Ownership in Argentina Decree Nº 820/2016 that modifies the Law 26,737: Progress on the implementation of the Law The original restrictions remain: 15% maximum percentage 4.5% same nationality No more than1000 ha in the corn belt or equivalent The main changes of the Decree are: Modifies the percentage to consider a society as "foreign from 25% to 51% of the shares Simplifies and makes more expedite the process of getting authorization as well as accreditation of residency in the country Intimate provinces to present the plan of equivalence, under penalty 6

8 87 Farming: Production Forecast & Global Stocks Soybean Var % YoY 0% 6% -1% USDA Production Forecast Corn Var % YoY 21% 16% 7% Argentina Brazil Argentina Brazil USA USA 2013/ / / / / /2017E Stock / Consumption Stock / Consumption 30,0% 25,0% 20,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% US World 15,0% 10,0% 5,0% 0,0% US World

9 01/07/ /08/ /09/ /10/ /11/ /12/ /01/ /02/ /03/ /04/ /05/ /06/ /07/ /08/ /09/2016 Farming: Mixed Results ARGENTINA BRASIL Commodity Prices USD/tn Var % YoY -13,3% 358 USD/tn Soybean Corn Var % YoY +11,2% 131 USD/tn 2016 Season (vs 2015) Weather conditions Planted Area Soybean Good (except Brazil) Price Yield Corn Production (tn) 8

10 Farming: Crop Production & Yields Crop Production* (Th Tonnes) - 18% Crop Breakdown (FY 2016 in ha) 596,0 55,0 152,0 382,0 469,0 434,6 60,0 49,3 151,0 139,0 250,0 244,7 567,8 589,4 32,3 39,5 483,1 158,4 148,3 34,7 29,9 38,8 357,7 376,8 379,7 7% 1% 4% 29% 11% 1% 47% Soybean Corn Wheat Sunflower Sugarcane Others Leased to 3rd FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Yields Evolution (tn/ha) 6,7 2,7 5,5 5,4 *Excluding sugar cane production ** Includes production from previous season Argentina Brazil Bolivia Paraguay 4,7 2,0 1,9 2,2 5,5 5,5 2,6 2,3 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Soybean Corn Argentina (tn/ha) 4,9 5,7 5,8 2,2 2,7 2,9 FY 2014 FY 2015 FY 2016 Brazil (tn/ha) 4,9 5,1 2,2 2,6 2,9 1,1 FY 2014 FY 2015 FY

11 Farming: Sugarcane, Cattle & Milk Production Sugarcane Production (Th Tonnes) 1, FY 14 FY 15 FY 16 Meat Production Milk Production 65,7 64,2 69,9 19,3 19,7 17,5 21,5 16,3 23,8 7,8 7,7 7,0 2,4 2,2 1,8 jun-14 jun-15 jun-16 Beef cattle production (Th. Tn) (ytd) Total (Th. Heads) jun-14 jun-15 jun-16 Milk Production (Lts M.) (ytd) Daily Milking Cows (Th. Heads) (ytd) Milk Production/ Cow / Day (Lts) (ytd) 10

12 Other Segments AGRIBUSINESS GLOBAL MARKETPLACE Cresud stake: 59.6% 2.2 million grains traded in FY16 Cresud stake: 45.0% Seeks to become a leading online business platform in the farming industry More than 500 agribusiness suppliers sell their products through this platform Strong Market share (3.1% soybean & 5.5% corn) During FY16 FyO sold its portal of news to Agrofy S.A. Results FY 16: ARS 28.2 MM (vs ARS 6.3 MM in 2015) Cresud 100% Poor results from our Meatpacking Plant in La Pampa (Argentina) Catte price has gone up Exchange remained stable (after the positive impact of depreciation) Local market could not translate to price the higher costs Results FY 16: Loss of ARS 65.7 MM (vs. Loss 44.3 MM in FY15) 12 11

13 Investment in IRSA: Argentina Business Center CRESUD has a 63.4% stake in IRSA, Argentinean Leading Real Estate Company Shopping Malls Annual Tenants Sales & Occupancy (ARS Million) Offices Leases USD/sqm/mth & Occupancy 97,6% 98,4% 99,1% 98,4% ,7% ,4% 98,9% 98,3% 96,4% 94,0% 93,1% 98,6% % (+29.6% SSS) 25,1 24,9 26,0 26,3 26,6 25, M 15 FY 15 3M 16 6M 16 9M16 FY 16 Strong results from Sales of Investment Properties during FY 2016 for ARS 1,068 million Total Partial Total Dique IV Office - 11,242 sqm Maipú ,451 sqm Isla Sirgadero Plot 826 ha 12

14 Investment in IRSA: Israel Business Center As of June 30, 2016 IRSA controls, through Dolphin, 68.3% of IDBD Amount invested USD 515 million IDBD at a Glance Ownership Structure Largest and most well diversified Conglomerate in Israel Dolphin IFISA Controller of Israel s largest telecommunications, agrochemicals and supermarkets company. 68,3% 31,7% IDBD Controller of PBC, leading real estate & farming company in Israel IDBG Modiin Tourism DIC 73,5% 54,9% CLAL Controller of the 2 nd insurance company in Israel Operational Subsidiaries Listed on Tel Aviv Stock Exchange 64,4% 40,0% 50,3% PBC ADAMA ELRON 45.1% CELLCO M 52,9% SHUFERS AL 69,1% 45,4% Main Events FY16 and subsequent Appointment of acting CEO & CFO for IDBD and DIC Mar-16: Renegociation of Tender Offers - Float acquisition + Deslisting (last price NIS/share 2.14) Bonds still oustanding on TASE Offer acceptance to sell 40% of ADAMA for USD 230 million in excess of total loan cancelation IDBD & DIC debt issuance at 4.25% (+CPI) & 5.70% due 2019 & 2023 respectively (subjet to approval Clal s shares pledge on IDBD note) 13

15 Financial Results Agroriego Farm San Luis, Argentina

16 IDBD Consolidation FS Exposure o CRESUD Consolidated Figures will be separate by Business: o Agribusiness segment was simplified between farming (including grains & sugar cane, cattle & milk), farmland development & others o Our urban segment is now divided into business centers: Argentina and Israel AGRIBUSINESS Farming Farmland Others Development Segments of IRSA s operations from Argentina looks the same than before consolidation ARGENTINA Business Center URBAN PROPERTIES & INVESTMENTS Shopping Office Centers and Others Sales & Development Hotels International Financial & Others ARGENTINA Business Center Segments of IRSA s operations from Argentina looks the same than before consolidation ISRAEL Business Center Shopping Centers Office and Others Sales & Development Hotels International Financial & Others Real Estate Supermarkets Agrochemicals Telecommunications Insurance Others 15

17 Operating Income by Segment FY16 (in ARS MM) AGRIBUSINESS Farmland Sales Farming Others Includes Agro-Industrial, Agriculture Rentals and services and FyO , Grains Cattle Sugarcane Milk FY2015 FY2016 FY2015 FY

18 Operating Income by Segment FY16 (in ARS MM) URBAN PROPERTIES & INVESTMENTS Argentina Business Center Rental Segment (ARS million) Sales & Development (ARS million) Financial & Others (ARS million) % % % FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 URBAN PROPERTIES & INVESTMENTS Israel Business Center NOI OPERATING INCOME EBITDA PBC SHUFERSAL CELLCOM OTHER TOTAL

19 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Consolidated Financial Results FY 2016 ARS MM Operating Income Net Financial Results Net Loss 3,746 2, ,495 2, FY 2015 Argentina Business Center 282 FY ,297-1,166-1, ,051 Controlling shareholders Non-controling intereset -1,402-1,070 Israel Business Center Agri-business -3,167 2,472 Net Financial Results Main Effects FY 2016 Agribusiness Net Financial Costs: Loss of ARS 317 million Net FX Losses: Loss of ARS million Urban Business & investments: Argentina Business Center Net Financial Costs: Loss of ARS 930 million Net FX Losses: Loss of ARS 654 million -6,246 Exchange Rate Evolution FY % (ARS/USD) FY % 15.0 Urban Business & investments: Israel Business Center Net Financial Costs: Loss of ARS 708 million FV of CLAL: Loss of ARS 1,945 MM

20 Real Estate Assets historically correlated to USD Farmland - Argentina Corn Belt (USD/ha) A+ Office buildings BA City (Argentina) (USD/sqm) Source: CAT & LJ Ramos 19

21 Cresud share (CRES) back on Merval Index Share Price CRESY (ADR) Share Price CRES (Local) % YoY +25% YoY Liquidity Liquidity (Daily Avge ) FY 2015 FY 2016 Var % CRESY (ADR) in USD MM % CRES (Ordinary) in ARS MM % CRESUD returned back to MERVAL Index Current: 9th position (4.8% weight) Proyected: 4th position (8.2% weight) 20

22 Cresud Stand Alone Debt as of June 30, 2016 Debt Description Agribusiness Amount (USD MM) Cresud Total Debt Cash & ST Investments 2.2 Cresud Net Debt Debt Amortization Schedule (Cresud Standalone - USD million) 141,1 38,6 31,7 56,4 13,

23 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 Cautionary Statement NASDAQ Symbol: CRESY BASE Symbol: CRES Contact ir@cresud.com.ar Follow us on Independent Auditors PricewaterhouseCoopers Argentina Tel +(54 11) Bouchard 557 7º Floor C1106ABG City of Buenos Aires - Argentina 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 2015 ended June 30, 2015, which are available for you in our websites.