Series XXIV Notes Exchange
Offer presentation
October 2020
1
ARGENTINA
CENTRAL BANK
RESOLUTION
"A" 7106
- Central Bank (BCRA) Communication "A" 7106 restricts access to the Foreign Exchange Market to obtain US dollars for the payment of debt maturities.
- Companies with capital maturities between 10.15.2020 and 03.31.2021 had to submit to the BCRA a detail of a refinancing plan based on the following criteria:
- that the net amount for which the exchange market will be accessed in the original terms will not exceed 40% of the capital amount due in the period.
- that the rest of the capital be refinanced with a new issuance with an average life of 2 years.
- CRESUD's Series XXIV, for an amount of USD 73.6 million, falls within the period contemplated by the provision, given its maturity on 11.16.2020.
2
CRESUD's SERIES XXIV EXCHANGE - USD 73.6mm - 9% - Nov 20
OPTION A
- at least USD 0.50 in cash and the rest with a new issuance (SERIES XXXI)
For each USD 1 | OPTION B | ||
presented in exchange, | |||
you will receive the | |||
…Early bird (until 10/30/20) 2% in ARS and a new | |||
accrued interest until | |||
issuance (SERIES XXXII) | |||
settlement date and… | |||
SERIES XXXI | SERIES XXXII |
US Dollars
100% Nominal Value
9% fixed - Quarterly payments
CURRENCY & PRICE OF ISSUANCE
INTEREST RATE
US Dollars
100% Nominal Value
9% fixed - Quarterly payments
Three equal installments, 36 months
AMORTIZATION & MATURITY | Bullet at maturity, 24 months |
In kind, in exchange of existing SERIES XXIV
SUSCRIPTION | In kind, in exchange of existing SERIES XXIV |
USD 44,16 million
SERIES MAXIMUM SIZE | USD 44.16 million |
Buenos Aires | PAYMENT LOCATION |
New York
3
CRESUD's SERIES XXIV EXCHANGE - USD 73.6mm - 9% - Nov 20
SCENARIOS
OPTION A | OPTION B |
80% | USD 29.4 | USD 29.4 | 01 | USD 14.8 | Base scenario according to the SERIES XXXII | 20% | ||
subscription notifications received from some | ||||||||
SERIES XXXI | 50% | Cash | 50% | SERIES XXXII | bondholders. | |||
50% | USD 7.4 | USD 29.4 | 02 | USD 36.8 | 50% | |
30% | ||||||
SERIES XXXI 20% | Cash | 80% | SERIES XXXII | |||
40% | USD 29.4 | 03 | USD 44.2 | 60% |
Cash | SERIES XXXII | |||
4
CRESUD's SERIES XXIV EXCHANGE - USD 73.6mm - 9% - Nov 20
ADDITIONAL INFORMATION
Early Bird Series XXXII | Exchange closure | Settlement | ||||||
2% ARS | ||||||||
Oct 30, 2020 | Nov 5, 2020 | ~ Nov 11, 2020 | ||||||
8 PM BA time | 8 PM BA time | |||||||
RATING | EXCHANGE AGENT | |||||||
A (arg)
JOINT-BOOK RUNNERS
5
La Compañía
6
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.
7
ESTRUCTURA CORPORATIVA
100% | 100% | 33.6% | 33.6% | 62.4% |
Campos en | Campos en | Campos en | Campos en | ||||||||||||||
ARGENTINA | BOLIVIA | BRASIL | PARAGUAY | ||||||||||||||
A través de | |||||||||||||||||
HOTELS | |||||||||||||||||
100% | 50.1% | 22.3% | 80.7% | LANDBANK | 29.9% | 18.9% |
BRASILAGRO owns | CRESUD owns 2,6% of |
1,9% of Agrofy | |
IRSA CP | |
COVID-19
Agribusiness operatingn normally in the region since
it is an essencial activity.
8
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%
9
FARMING
WE PRODUCE CROPS, SUGARCANE
AND MEAT IN THE REGION
We promote productivity improvements by investing in new technologies such as high-yield, 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
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
World meat consumption by country
Source: USDA 2019
USA
20%
China
14%
Others Brazil
40% E.U. 13%
13%
CHINESE MARKET | HILTON QUOTA |
License obtained to access the market | Right to export 1.399 Ton to EU |
with tariff exemption | |
KOSHER BUSINESS OPTIMIZATION | 100% fulfilled |
For Israel and USA markets |
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 | ||||||||||||||||||||||||
15
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
16
Market share en trading | ||
2008-2009 | 2020-2021 | |
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
A RGE N T INA BUS IN ES S CE N T E R
SHOPPING MALLS | OFFICES | |||||
• | 15 Shopping Malls | • | 8 Office Buildings | |||
• | 332k GLA sqm | • | 121k GLA sqm | |||
• | 94.7% occupancy | • 93,0% A+ y A occupancy | ||||
• FY20 Adj. EBITDA USD 58 MM (IRCP) | • FY20 Adj. EBITDA USD 28 MM (IRCP) | |||||
• FY20 FV USD 669MM (IRCP) | • FY20 FV USD 827 MM (IRCP) |
COVID-19: NEGATIVE IMPACT | COVID-19: NEUTRAL IMPACT |
Malls closed since March 20. As of | Offices business operating |
today, 85% of sqm are operating | |
normally. | |
under strict protocols. | |
HOTELS
- 3 Hotels
- 79k sqm
- FY20 BV USD 27 MM
COVID-19: NEGATIVE IMPACT.
Hotels closed since March 20.
"Intercontinental" is the only one
operating under a contingency/emergency plan.
LANDBANK
- 19 land plots
- 20 mm sqm
- FY20 BV USD 368 MM
18
Operational and
Financial Performance
19
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%
20
NET ASSET VALUE
A S OF JUN E 3 0 , 2 0 2 0 - USD M ILLION
1,308 Gross Asset Value | 888 Net Asset Value | 32.1% LTV | ||
485 | 115 | ||
21 | |||
Paraguay | Otros Activos | ||
31 | |||
Bolivia | 420 | 9% | |
144 | |||
Brazil | |||
289 | Negocio | ||
Argentina | Agropecuario | ||
1,308 | 37% | ||
888 | |||
709 | |||
Brazil | |||
30% |
IRSA NAV1 | Farms in the region2 | Other Investments + | Gross Asset | Net Debt as of | Net Asset |
Biological Assets3 | Value | 06/30/20 | Value |
Activos por | Negocio |
Negocio | Inmobiliario |
Urbano | |
54% |
Bolivia
6%
Paraguay
4%
Valor
campos por país
Argentina
1 - Stake proportional NAV.
2 - Valuation carried out by Compañía Argentina de Tierras (Argentina + Bolivia) and Deloitte (Brazil + Paraguay) as of June 30, 2018.
3 - Includes FyO according to latests sales, Carnes Pampeanas at Book Value, biological assets, inventories and AgroFy according to latest round of capital.
60%
21
CRESUD STAND ALONE
BY CALE NDAR Y EAR AS OF SE P T EMBER 3 0 , 2 0 2 0 - USD M ILLION
Description | Amount | Maturity |
Banking Debt | 101.4 | |
Series XXIV | 73.6 | Nov 2020 |
Series XXVI | 13.1 | Jan 2021 |
Series XXVIII | 27.5 | Apr 2021 |
Series XXV | 59.6 | Jul 2021 |
Series XXVII | 5.7 | Jul 2021 |
Series XIX | 83.0 | Dec 2021 |
Series XXIII | 113.0 | Feb 2023 |
Series XXX | 25.0 | Ago 2023 |
GROSS DEBT | 501.9 | |
CURRENT SCHEME | 253.3 | ||||
SERIES XXIV | 138 | ||||
103.3 | |||||
to be exchanged for | 7.3 | ||||
USD 73.6 | |||||
2020 | 2021 | 2022 | 2023 |
PROFORMA AMORTIZATION SCENARIOS
01 | 80% OPCIÓN A | 02 | 50% OPCIÓN A | 03 | 100% OPCIÓN B | |||||||
20% OPCIÓN B | 50% OPCIÓN B | |||||||||||
265.1 | 260.7 | 253.3 | ||||||||||
11.8 | 7.4 | 182.2 | ||||||||||
158.6 | 167.4 | |||||||||||
253.3 | 20.6 | 253.3 | 29.4 | 253.3 | 44.2 | |||||||
29.7 | 19.1 | 138 | 29.7 | 17.7 | 138 | 29.7 | 7.3 | 138 | ||||
11.8 | 10.4 | |||||||||||
2020 | 2021 | 2022 | 2023 | 2020 | 2021 | 2022 | 2023 | 2020 | 2021 | 2022 | 2023 |
22
CAPITAL MARKETS TRACK RECORD
NUMBER OF TRANSACTIONS | AMOUNT ISSUED | GROUP LISTED VEHICLES | NON-DEFAULT HISTORY | ||||
+200 | +USD 17bn | 5 | New York, Buenos Aires, | Even in the worst | |||
& Sao Paulo | Argentinean crisis (2001) | ||||||
IRSA IPO
APSA
APSA IPO (now IRCP)
CRESUD | LIABILITY |
FOLLOW ON | MANAGEMENT |
Tender offer IRSA bonds New IRCP
LOCAL MARKET
BA & NY LISTING
BA & NY LISTING
APSA & IRSA CONVERTIBLE NOTES
USD 288 MM Regional expansion
USD 360 MM bond IRCP 8% SPO USD 138 MM
DOLLAR LINKED ISSUANCES
USD 265 MM
1994 | 1997 | 2000/1 | 2006 | 2008 | 2012 | 2016/7 | 2018/9 | 2020 |
CRESUD US LISTING | BRASILAGRO IPO | BRASILAGRO US | DEBT | DURING | ||||
REFINANCING | COVID-19 | |||||||
Follow on | USD 276 MM | LISTING | ||||||
CRESUD USD 246 MM | PANDEMIC | |||||||
USD 92 MM | Company Foundation | |||||||
IRSA USD 227 MM | ||||||||
23
Thanks!
24
Attachments
- Original document
- Permalink
Disclaimer
Cresud S.A.C.I.F. y A. published this content on 26 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2020 21:04:05 UTC