Adecoagro S.a. · NYSE:AGRO
Adecoagro — Investor Presentation (2021)
31 slides from Adecoagro's investor presentation, Nov 2, 2021
Slide 1: Institutional Presentation
Institutional Presentation
Slide 2: Disclaimer & Non-GAAP Financial Measures and Reconciliation
Disclaimer & Non-GAAP Financial Measures and Reconciliation Disclaimer This presentation may contain certain forward-looking statements and information relating to Adecoagro S.A. and its subsidiaries (collectively, “Adecoagro” or the “Company”) that reflect the current views and/or expectations of t
Slide 3: Disclaimer & Non-GAAP Financial Measures and Reconciliation
Disclaimer & Non-GAAP Financial Measures and Reconciliation investors and others to evaluate and compare our consolidated operating results and to evaluate and compare the operating performance of our segments, respectively, including our return on capital and operating efficiencies, from period to
Slide 4: Agenda
Agenda 1 Adecoagro Overview 2 High Quality & Diversified Asset Base 3 Sugar, Ethanol & Energy Business 4 Farming & Land Transformation Businesses 5 Growth Strategy 6 Financial Strategy 4
Slide 5: Adecoagro Overview
& adecoagro Adecoagro Overview We are a leading agro industrial company in South America We are a low cost producer of food and renewable energy We run our business under a sustainable production model focused on profitability We own land and transform it into its highest production capabilities We
Slide 6: Adecoagro Overview: Farming, Land Transformation, Sugar & Ethanol
Adecoagro Overview Diversified farming business: Crops (soybean, corn, wheat, peanut, sunflower, cotton, among others) Rice (white, brown & parboiled rice; rice snacks; flour and by-products) Farming Dairy (raw milk, fluid milk, milk powder, cheese, yogurt, among others) 120k hectares of owned
Slide 7: Company Timeline
Company Timeline First steps Regional expansion Consolidation Second and entry into S&E pre- IPO growth wave Foundation Land purchases in Uruguay and NYSE listing 75,000 ha of ag. ERP implementation Brazil Consolidation of SE&E cluster production Entry into the SE&E business Vertical
Slide 8: Agenda
Agenda 1 Adecoagro Overview 2 High Quality & Diversified Asset Base 3 Sugar, Ethanol & Energy Business 4 Farming & Land Transformation Businesses 5 Growth Strategy 6 Financial Strategy
Slide 9: High Quality and Diversified Asset Base
High Quality and Diversified Asset Base Total Industrial Assets 3 Sugar & Ethanol mills 3 Rice mills 3 Free-Stalls 2 Grain conditioning & storage plants 2 Dairy processing facilities Mato Grosso do Sul 1 Peanut processing facility 13k owned ha 1 Sunflower processing facility 13 MT of Sugarcane crushi
Slide 10: Agenda
Agenda 1 Adecoagro Overview 2 High Quality & Diversified Asset Base 3 Sugar, Ethanol & Energy Business 4 Farming & Land Transformation Businesses 5 Growth Strategy 6 Financial Strategy
Slide 11: Sugar and Ethanol Business Overview
Sugar and Ethanol Business Overview AGRICULTURE AGRICULTURE INDUSTRIAL PRODUCTION PRODUCTION OVERVIEW OVERVIEW OVERVIEW FLEXIBILITY FLEXIBILITY 176k 3 110k Ha owned cane State of the art mills Tons of Sugar storage 13k 14.2MM 240k Ha own land Tons of crushing capacity m3 of Ethanolstorage 94% 803k D
Slide 12: Cluster Model Resulted in Synergies and Economies of Scale
Cluster Model Resulted in Synergies and Economies of Scale Adecoagro’s cluster in MS Two mills, 45km apart Extensive room for organic growth Possibility to crush sugarcane year round Own sugarcane plantation Both mills connected to the local power grid High sugarcane yield and TRS potential Synergie
Slide 13: Main Competitive Advantages
Main Competitive Advantages Low competition High TRS/ha potential Continuous Harvest High cogeneration efficiency ICMS Tax incentive Production flexibility 13
Slide 14: High Quality Assets, Operational Efficiency and Competitive Advantages Have Allowed us to Become a Low Cost Producer
High Quality Assets, Operational Efficiency and Competitive Advantages Have Allowed us to Become a Low Cost Producer Summary of Main Competitive Advantages: Cost Savings vs Traditional Areas (US$ cts/lb) Country Competitiveness Comparison INDIA 22.4 ↑ 0.4 ↓ 0.1 ↓ 0.4 ↑ 0.5 ↑ 0.5 THAILAND 17.0 ↑ 0.3
Slide 15: Competition Results
Competition Results Low competition for land fromnearby mills Average Lease Cost (tons/ha/year) Adecoagro Traditional Areas +69% 19.8 11.7 11.9 11.8 11.7 11.7 Mato Grosso do Sul, BRAZIL Ribeirão Preto, BRAZIL 100km radius: 12 mills 100km radius: 40 mills 2016 2017 2018 2019 2020 Traditional Areas Fa
Slide 16: Extracting the Most from Our Asset Base
Extracting the Most from Our Asset Base Energy Exported (‘000 MWh) Energy Exported per ton crushed Enough energy +73% for 1.2 million people (KWh/ton) High energy export per ton crushed Efficient equipment: Low energy consumption Cost Advantage : + 0.4 U$S Cts/lb High margin and predictable cash flo
Slide 17: Adecoagro Benefits from Significant Tax Incentives in the MS Cluster
Adecoagro Benefits from Significant Tax Incentives in the MS Cluster Commercial Benchmark: Logistics Overview Adecoagro’s MS Cluster vs. Sao Paulo (US$ Cts/lb)1 Mills located nearby main rail and +0.02 l +0.45 road Infrastructure Distance to terminal MG Cluster Mills: 858km (Railroad and highway) -0.2
Slide 18: Extracting the Most from Our Asset Base: Average Rain
Extracting the Most from Our Asset Base Regional characteristics Effective Miling Hours Average Rain - Center South vs Mato Grosso do Sul (MS) 270 Center South 220 Cluster Average Rain (mm) 5,691 6,055 5,606 170 4,944 5,373 120 70 2016 2017 2018 2019 2020 20 Jan Feb Mar Apr May Jun Jul Aug Sep Oct N
Slide 19: Renovabio: Strong Support for S&E Business
Renovabio: Strong Support for S&E Business In June 2020 Adecoagro officially became the first company to kickstart the commercialization of CBio under the RenovaBio program Direct Effects Carbon credit sale will increase revenue/decrease cost for biofuel producers equal to R$30/m3 (0.2 cts/lb sugar
Slide 20: High Flexibility in Production Mix Allowing Us to Profit from Higher Relative Prices
High Flexibility in Production Mix Allowing Us to Profit from Higher Relative Prices Historical Price Evolution in Sugar Equivalent (cts/lb) SE&E EBITDA distribution 13.8% 13.6% 9.1% 4Q19 4Q20 16.9% 8.3% 27.0% 36.9% Energy 34.5% Sugar Ethanol 78.1% 59.2% 54.0% 48.6% 2017 2018 2019 2020 Production Mix
Slide 21: Agenda
Agenda 1 Adecoagro Overview 2 High Quality & Diversified Asset Base 3 Sugar, Ethanol & Energy Business 4 Farming & Land Transformation Businesses 5 Growth Strategy 6 Financial Strategy
Slide 22: Farming & Land Transformation Overview
Farming & Land Transformation Overview Farming Business Segments Dairy Land Transformation Capacity to accommodate ~11,000 cows and potential to continue growing our herd Cutting-edge technology and best practices Productivity of 36.5 Liter/Cow/Day, 66% above Argentina’s average Solid track record,
Slide 23: One of the Lowest Cost Producers in the World
One of the Lowest Cost Producers in the World Soybean Cost (USD per ton) Corn Cost (USD per ton) Rice Cost (USD per ton) Production costs Selling costs Production costs Selling costs Production costs Selling costs Fobbing costs Export Tax Fobbing costs Export Tax 247 200 185 212 165 84 194 181 91 10
Slide 24: Land Transformation - Business Overview
Land Transformation - Business Overview Highlights since inception Land Transformation Process Over 10mm ha Full Rotation evaluated & High Yields * Reaching its highest production capabilities Medium PRODUCTIVITY Over 170k ha put into Low-Yield Crops * Adecoagro applies a production careful process
Slide 25: Agenda
Agenda 1 Adecoagro Overview 2 High Quality & Diversified Asset Base 3 Sugar, Ethanol & Energy Business 4 Farming & Land Transformation Businesses 5 Growth Strategy 6 Financial Strategy
Slide 26: 5-Year-Plan
5-Year-Plan In 2017 we announced our 5-Year-Plan which consisted in investing in attractive business opportunities to enhnace EBITDA and cash generation across all our segments Crops SE & E Dairy Rice Land Transformation 2 grains conditioning & Planting expansion of Construction of 2 free- Acquisiti
Slide 27: Solid Debt Profile
Solid Debt Profile Stable Adjusted EBTIDA despite volatile commodity price environment Soybean Wheat Corn 160 Sugar 140 120 100 80 60 40 20 298 276 314 305 342 0 216 2015 2016 2017 2018 2019 2020 Base index: December 2014 Expansion CAPEX decreasing and FCF increasing with most of the debt structured
Slide 28: Agenda
Agenda 1 Adecoagro Overview 2 High Quality & Diversified Asset Base 3 Sugar, Ethanol & Energy Business 4 Farming & Land Transformation Businesses 5 Growth Strategy 6 Financial Strategy
Slide 29: Financial Summary - Revenues
Financial Summary - Revenues Net Sales1 Evolution ($ MM) Sales Breakdown (2020FY) Sugar, Ethanol & Energy Energy Soybean Farming & Land Transformation 5.6% Corn Wheat 4.6% 1.9% 899 5.7% 841 848 796 769 Peanut Ethanol 22.7% 5.9% Sunflower 1.4% 576 488 385 569 470 Rice 13.0% 411 Sugar 323 360 Dairy 27
Slide 30: Financial Summary – Adjusted EBITDA
Financial Summary – Adjusted EBITDA Adj. EBITDA Evolution ($ MM) 342 Corporate 314 Sugar, Ethanol & Energy 298 305 Farming & Land Transformation 276 216 215 253 181 238 150 253 142 265 247 154 115 167 96 110 98 52 29 3 96 108 89 85 59 66 67 69 70 72 52 54 51 -7 -21 -19 -20 -19 -27 -22 -27 -25 -23 -2
Slide 31: Thank you!
Thank you! ir.adecoagro.com Charlie Boero Hughes - CFO Juan Ignacio Galleano - IRO Email: [email protected] Email: [email protected] TEL: +5411 4836 8804 TEL: +5411 4836 8624