Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria : Institutional Presentation IVQ 2020

Institutional Presentation

FY 2020

1

LEADING AGRICULTURAL COMPANY IN LATAM

Managing an approximately 800,000 has portfolio in Argentina, Bolivia, Brazil and Paraguay.

PIONEER IN FARMLAND REAL ESTATE

State of the art farmer with proven track record rotating the portfolio.

Management of great experience and unique skills.

CRESUD AT A GLANCE

D OIN G AGRIBUSIN ESS AN D REAL ESTAT E

LISTED BOTH IN BUENOS

AIRES AND NEW YORK

Since 1960 in Buenos Aires (BYMA:CRES)

Since 1997 in New York (NASDAQ:CRESY)

CONTROLLER OF IRSA

Largest diversified real estate company in Argentina with assets in the US and Israel.

2

CORPORATE STRUCTURE

*

100%

100%

33.6%

33.6%

62.4%

Farms in

Farms in

Farms in

Farms in

ARGENTINA

BOLIVIA

BRASIL

PARAGUAY

Through

100%

50.1%

22.3%

80.7%

100%

83.7%

29.9%

Indirectly

Directly and Indirectly

3

*CRESUD additionally owns 2.6% of IRCP shares

HISTORY AND CAPITAL MARKETS TRACK RECORD

8 3 Y EARS HISTORY D OIN G AGRIBUSIN ESS

~800k ha

(owned+leased)

IPO

USD 276 MM

2006

Follow on	1997
USD 92 MM

New Management

Mr. Eduardo Elsztain - Chairman

Follow on

USD 288 MM

2012

2008

17	USD BN
	ISSUED

2020

Mr. Alejandro Elsztain - CEO

Follow on

USD 64 MM

1994

200 TRANSACTIONS

1960

13 LISTED COMPANIES

1936	NON-DEFAULT HISTORY

Foundation	Even in the worst Argentinean crisis
	(2001)	4

FARMING

WE PRODUCE CROPS, SUGARCANE

AND MEAT IN THE REGION

We promote productivity improvements by investing in

new technologies such as high-yied, genetically modified seed, direct sowing techniques, machinery and renewable energy

~400th ha	~260th ha
PRODUCTIVE IN THE REGION	PLANTED AREA

~830th ton

REGIONAL CROP PRODUCTION

	PREMIUM MEATPACKING PLANT
	Capacity:
LA PAMPA - ARGENTINA	12.500 monthly heads
Exports licenses:
100%	UE, America & Asia (including China)

BUSINESS MODEL

D IV E RSIFIED AN D REGION AL

REAL ESTATE

PIONEERS IN FARMLAND REAL ESTATE

BUSINESS IN LATINOAMERICA

Proven track record in the acquisition, appreciation and

sale of farms in its optimum productive level

Urban

Valuecreation	Agriculture
	Specialties
	Cattle
	Unproductive land

Time

AGRICULTURAL SERVICES

LEADING AGRICULTURAL BROKER

IN ARGENTINA

50,1%

CRESUD STAKE

PIONEER AGRIBUSINESS E-COMMECE

PLATFORM

22,3%

CRESUD STAKE

CRESUD STAKE

REGIONAL AGRICULTURAL PORTFOLIO

Brazil

153,368 ha

20%

10%

11% Bolivia

9,875 ha

1%

Paraguay

59,585 ha28%

8%

Argentina

536,589 ha

71%

4%

40%	Hectares
56%	885,820
	(Owned, LT
	concession &	60%
	leased farms)
	48%	52%	40%

51%

6

Alto Taquarí

CRESUD PORTFOLIO EVOLUTION

OWN E D AN D LON G - T ERM CON CESION (T H . HA)

0.1

4.5

28.9

1.10.1

Serra Grande

PI

MTBA

Jatobá

Arrojadinho

Río do Meio

763,7

731.6 730,5 730,4 730,4

+4.1%

1.9

761,8 761.8

Total Surface	Jatobá Partial Sale	Alto Taquarí Partial Sale	Agrifirma's Merge	Serra Grande Acquisition Alto Taquarí Partial Sale	Jatobá Partial Sale	Total Surface
FY 2019	(IQ 20 - Sep 19)	(IIQ 20 - Oct 19)	(IIIQ 20 - Jan 20)	(IVQ 20 - May 20)	(IVQ 20 - Jun 20)	(IVQ 20 - Jun 20)	FY 2020

7

CROP BREAKDOWN

(FY 20)

13%

RECORD PLANTED AREA

T H . HECTARES

HISTORICAL

RECORD +6.5%

36

16

11%

51%

24%

Soybean

Corn

Sugarcane

Others

74

65

47	46	44
		37

36

23 23

			264
		248	10	Paraguay
		8	14	Bolivia
		15
	212	213
200	202	205
199
183		179	101	Brazil
		95

142 141

82

131 139 Argentina

49

37

FY 95 FY 96 FY 97 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20

8

COVID-19 AGRIBUSINESS WORKING AS ESSENTIAL ACTIVITY

P ROTOCOL USE D BY CRESUD IN IT S FARM S

SECURITY AND HYGIENE PROTOCOL

Security protocols and action procedures when identifying people with symptoms, applicable to own personnel and third parties.

Implementation of safe work measures: safety distances, sectorization, dining shifts, use of face masks, increased frequency of cleaning, among others.

Use of technological means to spread training material and medical advice.

FARMS ACCESS CONTROL

Implementation of controls at the accesses to the farms carried out by nurses and / or surveillance personnel (control of body temperature of all the personnel and a disinfecting spray system for all type of equipment or vehicle that enters the farm).

SUSPENSION OF FARMS VISITS

Suspension of trips and technical visits to the farms. The monitoring of the campaign is carried out in virtual form, through work meetings.

REDUCED TRANSPORT USE

The company's vehicles are used at 50% of their capacity to transport personnel and with certain measures regarding their use.

the transportation of employees living in the vicinity of the field has been reduced at 50% of their capacity too.

CHANGES IN THE WAY OF WORKING

Teleworking was implemented in different positions and functions

Some third-party work is now provided by own staff, due to less accessibility

In this way, Cresud supports the measures ordered

by the National Government to ensure

the provision of basic supplies and food.

9

GOOD PRODUCTIVE RESULTS FOR 2020 CAMPAIGN

CROP PRODUCTION

Th. tn

		Argentina	Brazil		+2.0%
		Bolivia		Paraguay	812	828
					24	24 12
					29
536		203	310
23	21
116
					557	482
376
		FY18		FY19	FY20

SUGARCANE PRODUCTION

Tn/ha

	Brazil	Bolivia	+12.1%
		2.150	2.411
	1.898	172
	146
	67
	1.831	2.004	2.239

CROP YIELDS

Tn/ha

	6.3	6.1
5.5
2.6	2.9	2.7
		Soybean
FY18	FY19	FY20E

MEAT PRODUCTION

Th. Tn & Th units

94	99
		74
		11,783
		2,485
10,566	11,173	9,298

Recent ~20%

59 cattle stock sale in

Argentina

11

4

FY18	FY19	FY20	FY18	FY19	FY20	10

MEATPACKING FACILITY

M AIN E V E NTS FOR FY 2 0 2 0

RECORD VOLUME OF SLAUGHTER

37.6%

FIRST POSITIVE EBITDA

Th. Heads

After five years losses

(USD million)

116

1,5

107

101

84

77

86

-0,4

-4,7

-4,4

-5,6

-7,9

FY 15

FY 16

FY 17

FY 18

FY 19

FY 20

FY 15

FY 16

FY 17

FY 18

FY 19

FY 20

INCREASE IN EXPORTS

66% in Kg and 39% in value

CHINESE MARKET

HILTON QUOTA

License obtained to access the market

Right to export 1.399 Ton to EU

World meat consumption by country

with tariff exemption

Source: USDA 2019

KOSHER BUSINESS OPTIMIZATION

100% fulfilled

USA

For Israel and USA markets

20%

China

14%

Others

Brazil

40%

13%

E.U.

13%

11

FARMLAND SALES TRACK RECORD

U S D M I L L I O N

																					Jatobá Partial Sales	Alto Taquarí Partial Sales
			25 YEARS AVERAGE
														Date of sale		IQ20 (Sep 19)		IV20 (Jun 20)	IIQ20 (Oct 19)	IVQ20 (Jun 20)
	Farms sold		2.4
														Area (hectares)		Total: 1,134 ha		Total: 1,875 ha	Total: 85 ha	Total: 105 ha
																			Productive: 893 ha		Productive: 1,500 ha	Productive: 65 ha	Productive: 105 ha
	Has sold		17 th.
													Acquisition Price +		BRL 1.7 MM		BRL 3.5 MM	BRL 1.2 MM	BRL 1.3 MM
																			CAPEX
	% Portfolio sold		3%
														Nominal Sale Price		302 bags/ha		300 bags/ha	1,100 bags/ha	1,100 bags/ha
	Argentina USD IRR		16%														BRL 22.7 MM		BRL 45.0 MM	BRL 5.5 MM	BRL 11.0 MM
																			IRR (BRL - USD)	14.7% - 7.0%			14.3% - 5.0%	21.4% - 13.0%		21.1% - 14.4%
	Brazil BRL IRR		22%										134
	Bolivia USD IRR		15%
																72
			PROFIT								62															67
			(USD MM)
																						46
			BOOK VALUE							28								34
			(USD MM)
				21	26			21			62								60
													39						19
											20
					14
									34
				5	13		13																		17
						12									14
													8
				3			7															7		7
				1														-													2
				FY10			FY11			FY12		FY13		FY14		FY15		FY16		FY17	FY18	FY19		FY20
	Farms sold	1		2	3	4	2		4	0	6				3		3					4

12

FARMLAND DEVELOPMENT & SALE CASES

A D D I N G V A L U E T O T H E L A N D

LOS POZOS

Salta - Argentina

AGRORIEGO

San Luis - Argentina

CREMAQ

Piaui - Brasil

1995

Acquisition 240,000 ha

USD 10/ha

1997

Acquisition

7,052 ha

USD 700/ha

2006

Acquisition

32,702 ha

BRL 42 mm

Investment

Cattle

USD 250/ha

Crop

USD 650/ha

Investment

Technology

USD 2,000/ha

Investment

CAPEX

BRL 33 mm

Current

valuation Cattle land

USD1,500/ha

Crop land

USD 2.500/ha

Current

valuation

USD 10.000/ha

2015

Sale Value

BRL 233 mm

LARGEST FARMLAND APPRECIATION CASE IN ARGENTINA

HIGHEST

PRODUCTIVITY

CASE IN

ARGENTINA

LARGEST

FARMLAND SALE

IN BRASIL

13

Market share en trading

2008-20092020-2021

corn	2.0%	5.3%
wheat	1.2%	3.0%
soybean	0.7%	3.7%

AGRICULTURAL SERVICES

T RAD ING, GAT HE RIN G & AGT ECH

LEADING GRAIN BROKER IN ARGENTINA			Traded Tonnes Evolution
				(Th. tn)
•	Brokerage	•	Trading
•	Derivatives	•	Gathering							1.259	1.487	1.733	1.684	2.001	2.241	3.030	3.307	3.940	5.132	4.018
•	Exports	•	Consulting	122	259	558	618	655	735
•	Specialties	•	Portfolio Management
•	Logistics	•	Training

PIONEER AGRIBUSINESS E-COMMERCE PLATFORM

• The world most visited agribusiness platform

• ~41 mm annual visits & 1,250 k monthly contacts	2020

LATAM EXPANSION

Annual visits (Th.)		Monthly contacts		Revenues (USD)
	1.252.557	2.612.319		2020
			41.021			+109%			+43%						2018
		+104%
									1.821.767
		20.137						1.463.603			2020
					598.489								2020
11.575			418.192												2020
															2019
													2020
									Jun-18	Jun-19	Jun-20
	Jun-18	Jun-19	Jun-20		Jun-18	Jun-19	Jun-20

Central Hub

14

INVESTMENT IN IRSA

ARGE N T INE LEAD ING D IV E RSIFIE D REAL ESTAT E COM PAN Y

LEADING DIVERSIFIED REAL ESTATE		UNIQUE PORTFOLIO AND STRONG		INVESTMENTS IN THE US AND
COMPANY		MARKET POSITION IN ARGENTINA		ISRAEL

MARKET POSITION

	ARGENTINA		ISRAEL
	BUSINESS CENTER		BUSINESS CENTER

80.7%	HOTELS	LANDBANK	29.9%	18.9%	100%	83.7%
					Indirectly	Directly and Indirectly

*CRESUD additionally owns 2.6% of IRCP shares

15

IRSA COMMERCIAL PROPERTIES

ARGE N T INA BUSIN ESS CE N T E R

High income Area

Mid Income Area

Low Income Area

Expanding Corporate North Area Business Center

AAA Location

Back Office Center

200 Della Paolera

(FY 2020)

EBITDA est.

~USD 10-12 MM

16

Financial Performance

17

AGRIBUSINESS ADJUSTED EBITDA

LAST 3 Y RS E VOLUT ION - USD M ILLION

105	Agribusiness Adj. EBITDA
FY 2020	Farming	FY 20

66%	Adj. EBITDA
	by segment

75	93	105
	36%
					FY 20
					Adj. EBITDA
FY 18	FY 19	FY 20			by Company

Others

10%

Farmland sales

24%

64%

18

Description	Amount	Maturity
Banking debt	144.8
Series XXIV	73.6	Nov 2020
Series XXVI	15.5	Jan 2021
Series XXVIII	27.5	Apr 2021
Series XXVII	5.7	Jul 2021
Series XXV	59.6	Jul 2021
Series XIX	83.0	Dec 2021
Series XXIII	113.0	Feb 2023
GROSS DEBT	522.7
Cash & Equivalents1	102.6
NET DEBT	420.1

1 Cash & Cash Equivalents + Investments in Financial Currents Assets

DEBT PROFILE

JUN E 3 0 , 2 0 2 0 - USD M ILLION

420.1 Stand Alone Net Debt		25	Subsequent Local issuance
	Rate: 2.0% fixed
			Maturity: August 31, 2023

AMORTIZATION SCHEDULE

246.7

163.0

113.0

Cash & Equivalents

USD 102.6

FY 2021

FY 2022

FY 2023

Central Bank Resolutions A "7105" & "7106":

• Companies must refinance principal maturities operating between October 15, 2020 and March 31,2021.
• The BCRA will give access to the official FX up to 40% of the total amount and companies must refinance the remaining balance to an average term of at least 2 years.
• The refinancing plan must be submitted prior to September30, 2020.
• The maturity of Series I falls within the period contemplated by the provision, as well as other bank debt.

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Thanks

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