Hosted by: Alejandro Elsztain, CEO Carlos Blousson, General Manager of Argentina & Bolivia Matías Gaivironsky, CFO

Transcription

1 FY18 Conference Call September 7, 2018 Hosted by: Alejandro Elsztain, CEO Carlos Blousson, General Manager of Argentina & Bolivia Matías Gaivironsky, CFO

2 Main Events for FY 2018 Adjusted EBITDA reached ARS 11.1 bn (+58% vs. FY17). Consolidated Financial Statements FY 18 Agribusiness: ARS 2.1 bn (vs. ARS 0,2 bn in FY17) due to higher operating results both from farming and farmland sales. Urban & Investments (through IRSA): ARS 9.0 bn mainly explained by higher operating results in Argentina and Israel. Net Income FY18: ARS 17.8 bn (+254% vs. FY17) Attributable to CRESUD: ARS 5.4 bn (vs ARS 1.5 bn in FY17) Agribusiness Mainly explained by higher results from FV of Investment Properties in Argentina Business Center and higher results from discontinued operations due to the sale of Shufersal stake in Israel Business Center Urban & Investments Sales and Development During FY18, we have sold 3 farms (2 partial) for USD 46.5 million, Subsequent event: Brasilagro sold a fraction of Jatobá Farm for BRL million. We have developed 10,684 ha in the region during the campaign Farming activity Good productive results in Brazil, Paraguay & Argentina, despite the drought, compensated by lower results in Bolivia. We ve planted 209 th. ha in the region and produced 532 th. crop tons. Argentina Business Center: EBITDA from rental segment grew by 24.7% in FY18 vs FY17. Occupancy reached 98.5% in Malls, 92.3% in offices and 70.1% in the hotels portfolio. Israel Business Center: Sale of 20% of CLAL during FY18 and subsequently, through local swap transactions, reducing IDB stake to 29.8% and sale of 16.65% of Shufersal for NIS million reducing DIC stake to 33.5% During FY 2018 we launched a share repurchase plan of ARS 900 million (4.1% of capital stock), completed in July

3 New measures from Argentinean government for the sector Crop Export Taxes: Previous scheme + mínimum between 12% or $ 4 per dollar until december 2020 Actual export tax % depends on exch. rate (i.e. 4 $/USD / 40 $/USD = 10%) Soybean 43,0% In the case of soybean they advanced the previous schedule to 18% 24,0% 28,0% 35,0% 35,0% 30,0% 27,5% Maximum 30%* 28,0% 28,0% 28,0% 24,5% 21,5% 18,5% 14,0% mar-02 abr-02 ene-07 nov-07 mar-08 jul-08 dic-15 may-18 nov-18 may-19 nov Scheme 2018 scheme with exch rate 40 $/U$S 25,0% Corn 20,0% 20,0% 20,0% 20,0% Wheat 28,0% 28,0% 28,0% 23,0% 20,0% Maximum 12%* Maximum 12%* 10,0% 10,0% 10,0% 10,0% 10,0% 10,0% 10,0% 10,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% mar-02 abr-02 ene-07 nov-07 mar-08 jul-08 dic-15 may-18 nov-18 may-19 nov-19 mar-02 abr-02 nov-07 mar-08 jul-08 ene-09 dic-15 may-18 nov-18 may-19 nov-19 *Scenario at ~ 33 $/USD 2017 Scheme 2018 scheme with exch rate 40 $/U$S 2017 Scheme 2018 scheme with exch rate 40 $/U$S 3

4 Portfolio Evolution FY 2018 Portfolio Evolution (Owned and Long term Lease Th. ha) Sales 9,37 10,00 0, , Total Ha FY 2017 La Esmeralda Partial Sale La Suiza Partial Sale Araucaria Total Ha FY 2018 Subsequent Sale: Partial Sale Jatobá Proyected Ha FY

5 Agricultural Portfolio independent appraisal Paraguay Bolivia Brasil Argentina ,7x Portfolio Valuation (USD million) Book Value FY18 Consolidated Market Value FY18 Market value to CRESUD stake 5

6 Farmland Sales FY 2018 La Esmeralda Farmland USD 19.0 million (USD/ha 2,031) 8.0x BV La Suiza (partial sale) USD 10.0 million (USD/ha 1,000) 8.4x BV Araucaria (partial sale) BRL 61.6 million (BRL/ha 93,356) 5.6x BV June 2018 May 2018 June 2018 o Total area (ha): 9,370 o Productive area (ha): 8,430 o Book Value: USD 2.4 MM o IRR (USD): 17.8% o A sales contract has been signed o Total sold area (ha): 10,000 o Productive area (ha): 8,105 o Book Value: USD 1.2 MM o IRR (USD): 9.5% o Total sold area (ha): 956 o Productive area (ha): 660 o Book Value: BRL 11.0 MM o IRR (USD): 12.0% 6

7 Subsequent Event: Brasilagro Farmland sale Jatobá (Jaborandi BA) BRL million (BRL/ha 18,172) 9.1x BV o o o o Ha sold: 9,784 (7,485 productive ha) Book Value: BRL 18.1 MM (~BRL 2,418/productive ha) Sale Value: BRL MM (~BRL 23,754/productive ha) Accounting Result at Brasilagro: ~ BRL 97.3 MM (will be recognized in IQ 2019) o IRR (BRL): 14% o IRR (USD): 7% o Remaining area: 21,822 ha Area sold 7

8 Regional Farmland Sales & Development Farmland Sales (USD million) 133,8 72,1 61,7 46,5 27,8 34,1 20,6 26,1 21, ,3 14,0 19,7 38,6 9,7 7,6 0,5 4, ,1 7,2 6, ,3 3,5 7, Profit USD M Book Value USD M Farmland Development (accumulated ha) ha* + 2,486 ARG +2,008 PY +6,190 BZ *6,643 ha completed and 4,041 ha pending completion (1,484 in Argentina and 2,557 in Brazil) 8

9 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 Farming: Production Forecast & Global Stocks Soybean Var % YoY -36% +6% +7% USDA Production Forecast Corn Var % YoY -20% -4% -4% Argentina Brazil USA Argentina Brazil USA 2015/ / /2018E 2015/ / /2018E Stock / Consumption Stock / Consumption 35% 30% 30% 25% 25% 20% 20% 15% 10% 15% 10% 5% 5% 0% 0% USA World USA World 9

10 Farming activity FY 2018 Weather conditions Yields vs FY 17 FY 2018 Campaign Argentina Brasil Bolivia Paraguay Drought (North Neutral) Very Good Rain excess Very Good Soybean: -24% Soybean: +33% Soybean: -8% Soybean: -15% Corn: -12% Corn: +26% Corn: -6% Corn: +15% Crop Production vs FY 17-23% +38% -14% +26% Cattle Production vs FY % +307% % Crop Breakdown (FY 2018 in Th. ha) Commodity prices 17% 6% Soybean Var % YoY (jun 18 vs jun 17 ) Soybean: -8.9% Corn: -5.5% 2% 5% 45% Corn Wheat Sunflower Soybean Sugarcane Others Corn 309,57 25% 136, jul/2008 jul/2013 jul/

11 Farming activity: Planted Area, Crop Production & Yields Planted Area (FY 2018 in Th. ha) Argentina Brazil Bolivia Paraguay Crop Production (Th. Tonnes) Argentina Brazil Bolivia Paraguay Sugarcane Production (Th. Tonnes) Brazil Bolivia +2% -12.8% , % 1, ,798 1,832 FY17 FY18 FY 2017 FY 2018 FY17 FY18E Yields Evolution (Tn/ha) Soybean Corn 5,5 2,7 Brazil 6,9 3,5 Paraguay 4,8 5,5 3,9 3,3 4,7 5,5 5,5 6,0 5,5 FY17 FY18 FY17 FY18 Argentina Bolivia 2,2 2,6 2,3 2,7 2,6 6,2 5,4 2,8 2,2 4,1 3,9 1,7 1,5 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY17 FY18 FY17 FY18 11

12 Cattle activity: Meat Production & Cattle Heads (Th. Tonnes & Th. Units) Cattle production (Th. Tn) Cattle Heads (Th.) ,3 0,6 5 Brangus 20% 8,2 8,1 9,7 USD 5,7 USD 5,2 USD 4,7 USD 4,2 USD 3,7 jun-16 jun-17 jun-18 Cattle price per country (Carcass weight - USD/kg) Braford Var % YoY Argentina -29% Brasil -19% Paraguay 1% USD 3,2 3,15 USD 2,7 USD 2,2 Paraguay Argentina Brasil USD 1,7 9/8/2015 9/2/2016 9/8/2016 9/2/2017 9/8/2017 9/2/2018 9/8/2018 2,53 2,30 12

13 Other Segments: Cresud stake: 50.1% 3.8 million grains traded in FY18 Strong Market share (4.2% soybean & 2,4% corn) Results FY 18: ARS 79.4 MM (vs ARS 51.1 MM in 2017) AGRIBUSINESS GLOBAL MARKETPLACE Seeks to become a leading online business platform in the farming industry More than agribusiness suppliers sell their products through this platform Cresud stake: 35.2% 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 Operating Results FY 18: Loss of ARS 62.5 MM (vs. Loss ARS in FY17) 13

14 Urban Business & Investments (Through IRSA) Main Events for FY 2018 Consolidated Financial Statements FY 18 Net Income FY18: ARS 21.3 bn (+308% vs. FY17) Attributable to IRSA: ARS 15.0 bn (vs ARS 3.0 bn in FY17) Adjusted EBITDA reached ARS 9.3 bn (+32% vs. FY17). Argentina Business Center Argentina Business Center: Gain of ARS 14.6 billion due to higher rental results and higher results from changes in Fair value of Investment Properties partially offset by higher financial losses and lower results due to Lipstick Fair Value. Israel Business Center: Gain of ARS 6.7 billion mainly explained by higher results from discontinued operations due to the sale of Shufersal stake, partially offset by a non cash effect of debt exchange at DIC level and a loss from FV of financial assets mainly explained by a decrease in the share price of Clal, valued at market price. Israel Business Center Rental Segment grew by 24.7% in FY18 vs FY17. Occupancy reached 98.5% in shopping malls, 92.3% in office buildings and 70.1% in the hotels portfolio. During FY18 and subsequently, IDB has sold a 20% of CLAL through 4 new swap transactions. Stake reduced to 29.8% June 18: sale of 16.65% of Shufersal for NIS million 14

15 Financial Results

16 Consolidated Financial Results FY18 ARS MM Agribusiness Urban Argentina Business Center Urban Israel Business Center TOTAL FY 2018 FY 2017 Var % FY 2018 FY 2017 Var % FY 2018 FY 2017 Var % FY 2018 FY 2017 Var % Revenues 5,898 3,742 58% 6,978 5,750 21% 26,110 21,254 23% 38,986 30,746 27% Costs -5,149-3,299 56% -2,799-2,409 16% -16,832-13,622 24% -24,780-19,330 28% Gross Profit 2, % 4,179 3,341 25% 9,278 7,632 22% 15,551 11,546 35% Change in Fair Value % 20,537 4, % 1, % 22,629 4, % Farmland Sales % % S,G&A Expenses* -1, % -1,303-1,056 23% -7,229-6,170 17% -9,720-8,131 20% Other operating results, net % % , Management Fee % Operating Income 2, % 23,351 6, % 4,689 1, % 29,964 8, % Share of result of associates and JV Net Financial Results -23,827-4, % Income Tax Net Income from continuing operations Net Income from discontinued operations ,713-91% 5,301-1,433-12,479 4, % Net Income 17,780 5, % *Includes corporate expenses (ARS 89 MM in Cresud, ARS 151 MM in IRSA and ARS 60 MM in Israel) Attributable to: Shareholders 5,392 1, % Non-controlling Interest 12,388 3, % 16

17 Net Financial Results FY18 ARS MM CRESUD+ BRASILAGRO IRSA IDBD+DIC TOTAL FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 Var % Net lost interest , ,544-4,566-7,445-5,596 33% Net exchange difference -4, , ,263-1, % Earned dividends and other net financial costs % DIC debt exchange , , Profit from FV of financial assets and derivate instruments , ,774 2, ,172-91% Net Financial Results -4, ,085-1,278-9,763-2,847-23,827-4, % Exchange Rate evolution (ARS/USD) 71.7% CLAL Insurance share evolution (NIS) 51.9% 13.5% %

18 Adjusted EBITDA* by Segment FY 18 (in ARS MM) Agribusiness FY 2018 FY 2017 Var % Farmland Sales % Farming 1, ,471% Grains Sugarcane ,156% Cattle & Milk* % Agriculture Rent & Services % Others (inc. Agro-Industrial & FYO) % Total 2, % *Milk was discontinued on IIQ 2018 Adjusted EBITDA = EBITDA Changes in Fair Value of investment properties Result from business combination 18

19 Adjusted EBITDA* by Segment FY18 (in ARS MM) Urban Segment: Argentina Business Center IVQ 2018 IVQ 2017 Var % FY 2018 FY 2017 Var % Shopping Malls % 2,748 2,208 24% Offices % % Hotels % % Sales & Development % % Urban Segment: Israel Business Center IVQ 2018 IVQ 2017 Var % FY 2018 FY 2017 Var % Real Estate % 3,289 2,296 43% Supermarkets 1, % 3,880 2,963 31% Telecommunications % 3,406 2,957 15% Others % % Devaluation (ARS/NIS) 36% 27% Adjusted EBITDA = EBITDA Changes in Fair Value of investment properties + Realized gains from sales of investment properties 19

20 CRESUD Share Repurchase Plan During the year we launched a Share Repurchase Plan of up to ARS 900 million that was completed in July Number of shares acquired: 3.9 million ordinary million ADS (4.1% of the capital stock) Average Price paid: ARS 43,27 per share and USD per ADS ADS price evolution Share price evolution Initial Date Feb-27 End Date Jul-26 Initial Date Feb-27 End Date Jul-26 21,92 16,78 43,75 45,75 20

21 Cresud Stand Alone Debt as of June 30, 2018 Debt Description Agribusiness Amount (USD MM) Cresud Total Debt Cash & ST Investments 6.7 Debt repurchase 34.1 Cresud Net Debt In Feb-18, the Company has issued notes in the local capital markets for an amount of USD 113 MM at 6.5% fixed rate due 2023 to pay off short term debt 190,2 Debt Amortization Schedule (CRESUD- USD million) 113,2 71,2 10,9 4,

22 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 Follow us on 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 2017 ended June 30, 2017, which are available for you in our websites.