Adecoagro S A : 1Q Earnings Release

1Q20 Earning Release Conference Call

English Conference Call

May 15, 2020

9 a.m. (US EST)

10 a.m. (Buenos Aires and Sao Paulo time)

3 p.m. (Luxembourg)

Tel: [phone]

Participants calling from other countries outside the US

Tel: [phone] Participants calling from the US

Investor Relations

Charlie Boero Hughes

CFO

Juan Ignacio Galleano

IR Manager

Email

[e-mail]

Website:

www.adecoagro.com

Adecoagro´s Adjusted EBITDA reached $61.1 million during 1Q20, 4.7% higher year-over-year.

Luxembourg, May 14, 2020 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US,

Reuters: AGRO.K), a leading agro-industrial company in South America, announced today its results for the first quarter ended March 31, 2020. The financial information contained in this press release is based on unaudited condensed consolidated financial statements presented in US dollars and prepared in accordance with International Financial Reporting Standards (IFRS) except for Non - IFRS measures. Please refer to page 29 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this report.

Highlights

Financial & Operating Performance

$ thousands	1Q20	1Q19	%
Gross Sales	157,064	162,098	(3.1)%
Net Sales (1)	151,489	153,874	(1.5)%
Adjusted EBITDA (2)
Farming & Land Transformation	24,680	31,942	(22.7)%
Sugar, Ethanol & Energy	40,917	31,197	31.2%
Corporate Expenses	(4,530)	(4,838)	n.a.
Total Adjusted EBITDA	61,067	58,301	4.7%
Adjusted EBITDA Margin (2)	40.3%	37.9%	6.3%
Net Income	(54,441)	(2,235)	n.a.
Adjusted Net Income(4)	43,931	14,518	202.6%
Farming Planted Area (Hectares)	238,494	225,115	5.9%
Sugarcane Plantation Area (Hectares)	169,336	157,638	7.4%

1. • Adjusted EBITDA(3) in 1Q20 was 4.7% higher compared to the same period of last year, despite the fact that no farms were sold during the quarter compared to one farm sale made during 1Q19. Excluding results from Land Transformation, Adjusted EBITDA increased $12.1 million or 24.8% year-over-year.
   • Adjusted Net Income(4) in 1Q20 was $43.9 million, 202.6% higher compared to 1Q19.
2. Net Sales are equal to Gross Sales minus sales taxes related to sugar, ethanol and energy.
3. Please see "Reconciliation of Non-IFRS measures" starting on page 29 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/(Loss). Adjusted EBITDA is defined as consolidated profit from operations before financing and taxation, depreciation of PP&E, and amortization of intangible assets plus the gains or losses from disposals of non-controlling interests in subsidiaries. Adjusted EBIT is defined as consolidated profit from operations before financing and taxation plus the gains or losses from disposals of non- controlling interests in subsidiaries. Adjusted EBITDA margin and Adjusted EBIT margin are calculated as a percentage of net sales.
4. Adjusted EBITDA margin excluding third party commercialization activities is defined as the consolidated Adjusted EBITDA net of the Adjusted EBITDA generated by the commercialization of third party sugar, grains and energy, divided by consolidated gross sales net of those generated by the commercialization of third party sugar, grains and energy. We net third party commercialization results to highlight the margin generated by our own production.
5. Please see "Reconciliation of Non-IFRS measures" starting on page 29 for a reconciliation of Adjusted Net Income. We define Adjusted Net Income as (i) Profit/(Loss) of the period year, plus (ii) any non cash finance costs resulting from foreign exchange losses for such period, which breakdown composed both Exchange Differences and Cash Flow Hedge Transfer from Equity, net of the related income tax effects plus (iii) gains or losses from disposals of non controlling interests in subsidiaries whose main underlying asset is farmland, which are relieved in our Shareholders Equity under the line item. "Reserve from the sale of non-controlling interests in subsidiaries plus (iv) the reversal of the aforementioned income tax effect, plus (v) the inflation accounting effects, plus (vi) the revaluation results from the hectares hold as investment property.

1