1. business and industrial
2. agriculture and forestry
3. crops and seed

Institutional
Presentation
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 the Company and its management
with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement
that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like “believe”,
“anticipate”, “expect”, “envisages”, “will likely result”, or any other words or phrases of similar meaning. Such statements are
subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual
results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. In no
event, shall the Company or any of its subsidiaries, affiliates, directors, officers, agents or employees be liable before any third party
(including investors) for any investment or business decision made or action taken in reliance on the information and statements
contained in this presentation or for any consequential, special or similar damages.
No reliance may be placed for any purpose whatsoever on the information contained in this presentation or on its completeness. No
representation or warranty, express or implied, is or will be made or given by the Company or any of its affiliates or directors or any
other person as to the accuracy or completeness of the information or opinions contained in this presentation and no responsibility
or liability is or will be accepted for any such information or opinions.
This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in
part without the prior written consent of the Company.
This presentation does not constitute or form any part of any offer or invitation or inducement to sell or issue, or any solicitation of
any offer to purchase or subscribe for, any shares or other securities of the Company, nor shall it or any part of it or the fact of its
distribution form the basis of, or be relied on in connection with, any contract therefore.
For further information regarding risks, uncertainties and assumptions which may affect our expectations of future performance,
please see the registration statement we have filed with the United States Securities and Exchange Commission on Form F-3,
including, without limitation, the sections titled "Risk Factors" and "Forward-Looking Statements" included within such registration
statement.
2
Non-GAAP Financial Measures and Reconciliation
This presentation contains unaudited non-GAAP financial information. We present Adjusted Consolidated EBITDA, Adjusted Segment EBITDA, Adjusted Consolidated EBIT
and Adjusted Segment EBIT as supplemental measures of performance of the Company and of each operating segment, respectively, that are not required by, or presented
in accordance with IFRS.
Our Adjusted Consolidated EBITDA equals the sum of our Adjusted Segment EBITDAs for each of our operating segments. We define Adjusted Consolidated EBITDA as
consolidated net profit or loss for the year or period, as applicable, before interest expense, income taxes, depreciation and amortization, foreign exchange gains or losses,
other net financial expenses and unrealized changes in fair value of our long-term biological assets, primarily our sugarcane and coffee plantations, and cattle stocks. We
define Adjusted Segment EBITDA for each of our operating segments as the segment’s share of consolidated profit from operations before financing and taxation for the
year or period, as applicable, before depreciation and amortization and unrealized changes in fair value of our long-term biological assets. We believe that Adjusted
Consolidated EBITDA and Adjusted Segment EBITDA are for the Company and each operating segment, respectively important measures of operating performance
because they allow 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 period by removing the impact of our capital structure (interest expense from
our outstanding debt), asset base (depreciation and amortization), tax consequences (income taxes), unrealized changes in fair value of biological assets (a significant noncash gain or loss to our consolidated statements of income following IAS 41 accounting), foreign exchange gains or losses and other financial expenses. Other companies
may calculate Adjusted Consolidated EBITDA and Adjusted Segment EBITDA differently, and therefore our Adjusted Consolidated EBITDA and Adjusted Segment EBITDA
may not be comparable to similarly titled measures used by other companies. Adjusted Consolidated EBITDA and Adjusted Segment EBITDA are not measures of financial
performance under IFRS, and should not be considered in isolation or as an alternative to consolidated net profit (loss), cash flows from operating activities, segment’s profit
from operations before financing and taxation and other measures determined in accordance with IFRS. Items excluded from Adjusted Consolidated EBITDA and Adjusted
Segment EBITDA are significant and necessary components to the operations of our business, and, therefore, Adjusted Consolidated EBITDA and Adjusted Segment
EBITDA should only be used as a supplemental measure of our operating performance of the Company, and of each of our operating segments, respectively. We also
believe Adjusted Consolidated EBITDA and Adjusted Segment EBITDA are useful for securities analysts, investors and others to evaluate the financial performance of our
company and other companies in the agricultural industry. These non-IFRS measures should be considered in addition to, but not as a substitute for or superior to, the
information contained in either our statements of income or segment information.
Our Adjusted Consolidated EBIT equals the sum of our Adjusted Segment EBITs for each of our operating segments. We define Adjusted Consolidated EBIT as
consolidated net profit or loss for the year or period, as applicable, before interest expense, income taxes, foreign exchange gains or losses, other net financial expenses
and unrealized changes in fair value of our long-term biological assets, primarily our sugarcane and coffee plantations, and cattle stocks. We define Adjusted Segment EBIT
for each of our operating segments as the segment’s share of consolidated profit from operations before financing and taxation for the year or period, as applicable, before
unrealized changes in fair value of our long-term biological assets. We believe that Adjusted Consolidated EBIT and Adjusted Segment EBIT are for the Company and each
operating segment, respectively important measures of operating performance because they allow investors and others to evaluate and compare our consolidated operating
results and to evaluate and compare the operating performance of our segments, from period to period by including the impact of depreciable fixed assets and removing the
impact of our capital structure (interest expense from our outstanding debt), tax consequences (income taxes), unrealized changes in fair value of biological assets (a
significant non-cash gain or loss to our consolidated statements of income following IAS 41 accounting), foreign exchange gains or losses and other financial expenses.
Other companies may calculate Adjusted Consolidated EBIT and Adjusted Segment EBIT differently, and therefore our Adjusted Consolidated EBIT and Adjusted Segment
EBIT may not be comparable to similarly titled measures used by other companies. Adjusted Consolidated EBIT and Adjusted Segment EBIT are not measures of financial
performance under IFRS, and should not be considered in isolation or as an alternative to consolidated net profit (loss), cash flows from operating activities, segment’s profit
from operations before financing and taxation and other measures determined in accordance with IFRS. Items excluded from Adjusted Consolidated EBIT and Adjusted
Segment EBIT are significant and necessary components to the operations of our business, and, therefore, Adjusted Consolidated EBIT and Adjusted Segment EBIT
should only be used as a supplemental measure of our operating performance of the Company, and of each of our operating segments, respectively. We believe Adjusted
Consolidated EBIT and EBITDA and Adjusted Segment EBIT and EBITDA are useful for securities analysts, investors and others to evaluate the financial performance of
our company and other companies in the agricultural industry.
3
Agenda
I.
Adecoagro Overview
II.
Investment Highlights
III.
Value Creation & Financial Performance
IV.
Key Takeaways
V.
Appendix
4
Adecoagro Overview
 We are a leading agricultural company in South
America
 We are a food and renewable energy
LOW COST PRODUCER
 We own land and transform it into its highest
production capabilities
 We own and operate industrial assets to process our
production
 We run our business under a sustainable production
model focused on profitability
5
Adecoagro Overview
Farming
Land
Transformation
Sugar,
Ethanol & Energy
 Diversified farming business
• Crops (Corn, Soy, Wheat, Sunflower, Cotton)
• Rice
• Dairy
 122k hectares of owned, croppable land spread
across the most productive regions
 Own handling, storage and processing facilities
 Acquisition of under-utilized and undermanaged farmland
 Transforming land into its highest productive
capabilities, thus increasing its value
 Strategic sales of mature land in order to
recycle capital for new investment
 Fully-integrated producer of sugar,
ethanol and energy
 10.2 million tons of sugarcane crushing
capacity
 Focus on investment in farm and plant
efficiency to drive returns
• Co-generation capacity
• Owned sugarcane plantations
• Mechanized farm operations
Producing each crop in
the right location
driving low cost
production
Positive track record of
consistent land sales
generating strong
capital gains
Focus on building a
unique business model
extracting higher value
per ton
6
Following 13 Years of Sustained Growth, Adecoagro Has
Become a Leading Agribusiness Company
Corporate Timeline
Sugarcane Crushing Capacity (MM Tons)
Sugarcane
Crushing
–Capacity
(MM tons)
–
–
0.9
0.9
Production (K tons) (1)
Owned Area (K ha)
Legend:
132
0.9
1.7
3.3
278
273
5.2
5.2
293
283
7.2
284
7.2
257
239
134
1,670
60
2002
75
120
184
266
2003
2004
2005
2001 – 2003: The First Steps
10.2
269
110
75
7.2
621
682
679
2007
2008
2009
1,088
1,143
1,245
1,352
2010
2011
2012
2013
407
2006
2004 – 2007: Regional Expansion and entry into S&E
2008 – 2009: Consolidation
2014
2015
2010-Now: Second Growth Wave
Regional Expansion
Note:
(1) Includes Crops, Rice, Milk, Sugar and Ethanol. Milk and Ethanol converted to Tons at density ratios of 1.035 Ton/M3 and 0.789 Ton/M3 respectively
7
Ownership Breakdown
Top Shareholders
Others
18.3%
Soros
20.8%
Wellington 3.8%
QIA
12.8%
Stitchting
12.4%
Fund Name
Soros Fund Management LLC
Qatar Investment Authority
Stitchting Pensioenfonds Zorg en Welzjin
Ospraie Management LLC
Management & Directors
Jennison Associates LLC
Brandes Investment Partners LP
Wellington Management Co. LLP
Tradewinds Global Investors LLC
Global Thematic Partners LLC
Others
Total Shares Outstanding
Shares % O/S
26,024,803 20.8%
15,983,265 12.8%
15,531,385 12.4%
10,850,214
8.7%
7,735,852
6.2%
7,925,623
6.3%
6,475,614
5.2%
4,711,480
3.8%
3,261,830
2.6%
3,023,576
2.4%
23,471,589 18.8%
124,995,231 100.0%
8
Agenda
I.
Adecoagro Overview
II.
Investment Highlights
III.
Value Creation & Financial Performance
IV.
Key Takeaways
V.
Appendix
9
Investment Highlights
Highly Qualified and Experienced
Management Team
Strong Outlook for Global
Agribusiness Sector
High Quality and Diversified
Asset Base
Significant and Identified
Growth Opportunities
Sustainable Production Model
Focused on Low Cost and
Profitability
Adecoagro is a unique opportunity to invest in the South American agribusiness sector
10
Strong Outlook for Global Agribusiness Sector
Population
Growth
►
Developing countries are expected
to increase their population at a
high rate
►
Global population is expected to
reach 9 billion by 2050
Billions
Population growth
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
-
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Developing Countries
Developed Countries
Source: World Bank
Per capita meat consumption (2000=100)
►
Higher meat and
biofuel consumption
►
Developing countries will
considerably increase per capita
meat consumption during the next 10
years
Increase in blending of biofuels with
gasoline
180
160
140
120
100
80
2000
2004
2008
2012
BRIC
2016
2020
2024
EU
Source:FAPRI
Arable land per habitant
0.30
0.25
0.20
2009
2006
2003
2000
1997
1994
1991
1988
1985
1982
1979
1976
1973
0.15
1970
Every year land becomes a more
scarce, and therefore, a more
valuable asset
0.35
1967
►
0.40
1964
Land scarcity
increases as
world population
grows
The amount of arable land is fixed
while world population continues
growing
1961
►
Hectares per habitant
Source: World Bank
11
South America Offers the Most Competitive
Conditions to Take Advantage of the Growing Demand
Key Competitive Advantages
Available Land for Expansion
Million hectares of uncultivated land
1
Appropriate soil for farming
Sub-Saharan
Africa
2
Regular rainfall
3
Adequate solar energy
4
Economies of scale
5
Low cost of land
6
Advanced technology
7
Qualified labor
8
201,8
Latin Am erica
& Caribbean
123,3
Rest of World
52,1
Eastern Europe
& Central Asia
51,1
East & South
Asia
14,8
Middle East &
North Africa
2,7
Logistics infrastructure
0
50
100
150
200
250
Source: The World Bank, 2010
Brazil and Argentina are two of the most important suppliers of agro-commodities in the world
12
Investment Highlights
Highly Qualified and Experienced
Management Team
Strong Outlook for Global
Agribusiness Sector
High Quality and Diversified
Asset Base
Significant and Identified
Growth Opportunities
Sustainable Production Model
Focused on Low Cost and
Profitability
Adecoagro is a unique opportunity to invest in the South American agribusiness sector
13
High Quality and Diversified Asset Base
Western Bahia
Western Bahia
Mato Grosso do Sul
 20k owned ha(1)
 13k owned ha
Peru
 9.0 MT of sugarcane
crushing
Brazil
Total Farms
BOLIVIA
Bolivia
 33 Farms
 257K ha of owned land (1)
Northern Argentina
Industrial Facility
Farm
 183k owned ha
 3 rice mills
 4 grain handling and
storage facilities
 $884 MM appraisal by
 Cushman & Wakefield (1)
Paraguay
Chile
Minas Gerais
 1.2MT of sugarcane
crushing
Argentina
Total
TotalIndustrial
IndustrialAssets
Assets
 3 Sugar & Ethanol Mills
Humid Pampas
 38k owned
 3 Rice Mills
ha(1)
 2 Free Stall Dairy
Operation
 3 grain handling and
storage facilities
 2 Free Stall Dairies
 10 Grain Conditioning and
Storage Plants
Uruguay
Uruguay
 3k owned ha
(1) Cushman and Wakefield Appraisal as of September 30, 2014
14
Land Under Management
Current Land Breakdown (hectares)
Owned Land
434,660
114,341
63,283
257,036
44,610
63,336
122,138
212,426
17,807
9,145
Crops & Rice Sugarcane Potentially
Croppable
Land
Cattle
Grazing
Total
Productive
Farmland
Land
Total Owned
Reserves
Land
Leased
Crops
Leased
Total Land
Sugarcane
Under
Management
15
State-of-the-art Sugar, Ethanol and Energy Mills
Usina Monte Alegre Mill
Location: Minas Gerais
Capacity:1.2 million tons
Production:
Sugar – 80,000 tons
Ethanol – 30,000 m3
Energy – 54,000 MWh
Competitive Advantages
Angelica Mill (Cluster)
Full Cogeneration Capacity
Location: Mato Grosso do Sul
Capacity: 4.0 million tons
Cane Supply – 95% Owned
Production:
Sugar – 330,000 tons
Ethanol – 220,000 m3
Energy – 248,000 MWh
Low Lease Rates
Tax Advantages
Ivinhema Mill (Cluster)
Location: Mato Grosso do Sul
Capacity: 5.0 million tons
Production:
Sugar – 320,000 tons
Ethanol – 240,000 m3
Energy – 360,000 MWh
16
Ivinhema Mill Will Complete Our 10 MM Ton Sugar & Ethanol
Cluster, Providing Synergies & Economies of Scale
Overview / Rationale
 2 mills, 45km apart
 120k hectares of sugarcane
AngelicaMill
Mill
Angelica
 Ivinhema (2nd mill) Project
 1st Phase: 2.0 million tons - completed
 2nd Phase: 5.0 million tons – completed March
2015
Synergies / Economies of Scale
Ivinhema
Ivinhema Mill
Mill
One large plantation supplying two mills
Centralized management team
Optimize sugarcane logistics
Harvest efficiencies and flexibility
Viability of participation in logistics projects
Source: Google
17
Investment Highlights
Highly Qualified and Experienced
Management Team
Strong Outlook for Global
Agribusiness Sector
High Quality and Diversified
Asset Base
Significant and Identified
Growth Opportunities
Sustainable Production Model
Focused on Low Cost and
Profitability
Adecoagro is a unique opportunity to invest in the South American agribusiness sector
18
Sustainability Is Key To Ensure Long Term Profitability
Farming and Land Transformation
Sugar, Ethanol and Energy
No Till Technology Enhances Soil Productivity,
Reduces Cost and Increases Land Value
Low cost sugarcane production
Cost
Fertile soils
Favorable climate conditions
Zone of active decomposition
Low land competition from other mills and crops
Mechanized harvest and planting
Zone of active agregation
Optimum Scale
Aggregates formation in layers
0-5
cm
Source: J.C.Moraes Sa, 2003
Sustainable Production Model is Centered on
No Till And Best Practices
Crop
Rotation
Highest industrial efficiency
High sugar extraction
(minimize losses)
Full cogeneration
capacity
Flexibility in sugar and
ethanol production
Full utilization and
recycle of by-products
Water
Economy
Biotech
Integrated
Pest
Management
Production
NO
TILL
Fertilization
Moraes Sa, 2003 adapted by Company
19
Investment Highlights
Highly Qualified and Experienced
Management Team
Strong Outlook for Global
Agribusiness Sector
High Quality and Diversified
Asset Base
Significant and Identified
Growth Opportunities
Sustainable Production Model
Focused on Low Cost and
Profitability
Adecoagro is a unique opportunity to invest in the South American agribusiness sector
20
Significant and Identified Growth Opportunities
Farming & Land Transformation
Land Acquisitions
Land Transformation
Identified
Opportunities
Sugar, Ethanol & Energy
Complete Ivinhema / Angélica cluster in MS
 Expand milling capacity up to 10 mm tons
Opportunistic Land Leasing
 Expand sugarcane plantations area
Downstream vertical integration
 Increase cogeneration capacity
M&A
Potential
Opportunities
Identify new cluster opportunities
Opportunistic purchases
M&A
We will continue to be disciplined in our deployment of capital with a focus on
returns on invested capital
21
Investment Highlights
Highly Qualified and Experienced
Management Team
Strong Outlook for Global
Agribusiness Sector
High Quality and Diversified
Asset Base
Significant and Identified
Growth Opportunities
Sustainable Production Model
Focused on Low Cost and
Profitability
Adecoagro is a unique opportunity to invest in the South American agribusiness sector
22
Highly Qualified and Experienced Management Team
Board Members
Qualified Management Team
Name
Position
Mariano Bosch
CEO
Age
45
Past
Experience
Agribusiness
entrepreneur
Years with
Company
Since inception
Name
Position
Experience
Abbas Farouq Zuaiter
Chairman
Mariano Bosch
Director / CEO
Noble Group /
Citibank N.A.
5
39
Marval, O’Farrell &
Mairal
Since inception
Marcelo Sanchez
Chief Commercial
Officer
53
Commercial
agribusiness
entrepreneur
Since inception
Renato Junqueira
Director of Sugar &
Ethanol Operations
38
Usina Moema
4
Charlie Boero Hughes
CFO
49
Emilio Gnecco
Chief Legal & M&A
Officer
Pepe Imbrosciano
Director of Business
Development
Leonardo Berridi
Country Manager for
Brazil
46
55
Ezequiel Garbers
Country Manager for
Argentina and Uruguay
49
Hernan Walker
Head of Investor
Relations
33
Agribusiness sector
Agribusiness sector
Agribusiness
entrepreneur
Business
development and
reporting
Alan Boyce
Director
11
9
Andres Velasco
Director
Daniel Gonzalez
Director
Dwight Anderson
Director
Guillaume van der Linden
Director


Advisor to Soros Fund Management LLC
Over 20 years of financial markets and managerial experience


Co-founder and CEO of Adecoagro
Over 18 years of managerial experience in the agribusiness
sector


Co-founder of Adecoagro and Board Member since inception
Over 20 years of financial markets and managerial experience


Former Minister of Finance of Chile (2006-2010)
Former president of the Latin American and Caribbean
Economic Association from 2005 to 2007


Former President for the Southern Cone of Merrill Lynch
Current Chief Financial Officer of YPF


Managing Partner of Ospraie Management LLC
Over 20 years of experience in basic industries and
commodities investments

Head of Investment Management at PGGM Vermogensbeheer
B.V.
Over 20 years of financial markets and managerial experience



Co-founder and Chief Commercial Officer at Adecoagro
Over 22 years of experience in agricultural business trading
and market development
Mark Schachter
Director


Managing Partner of Elm Park Capital Management
Over 10 years of financial markets and managerial experience
Plínio Musetti
Director


Partner in the private equity group of Pragma Patrimonio
Over 20 years of CEO and Private Equity experience
Marcelo Sanchez
Director
12
8
Marcelo Vieira
Director


Board member of UNICA and VP of Sociedad Rural Brasilera
Over 40 years of agribusiness management
23
Agenda
I.
Adecoagro Overview
II.
Investment Highlights
III.
Value Creation & Financial Performance
IV.
Key Takeaways
V.
Appendix
24
Generating Value For Our Shareholders
Main Sources of Returns
Cash-on-Cash
Return
Land
Transformation
On-Going Land
Transformation
Land
Appreciation
►
Return generated by planting, harvesting, processing
and selling
►
Achieved by high productivity, cost efficiency and selling
at high prices
►
Return generated by enhancing the quality, productivity
and value of farmland
►
Achieved by transforming undeveloped or
undermanaged land into high yielding croppable land
►
Return generated by applying a sustainable production
model on our farm operations
►
Achieved by applying no-till technology, crop rotations,
and other best practices on our farms
►
Return generated by increasing land prices as a result
of supply and demand dynamics
►
Such include: commodity prices, population growth,
protein and biofuels demand, etc.
Flows through
P&L?
Controlled
by AGRO?
25
Land Transformation is a Key Element of Our
Business and a Driver of Value Creation
Land Transformation Process
 Identify
undermanaged land
 Design specific
production model
 Acquire land
Key Competitive Advantages
Full Rotation & High Yields
 Specialized department responsible for analysis of all
investments and sales

Medium-Low Yield Crops
Year 5
Natural Grasses
Year 2
 Reaching its
highest
production
capabilities
Over 10MM ha evaluated since inception
 Sophisticated methodology to analyze investment
projects, integrating financial, production and
environmental expertise
 Strong reputation as one of the market leaders in the
sector
Year 1
Strong Track Record of Capitalizing Gains
from Land Transformation
 66 hectares
Capital gains for over $185 million
Cash $274 million
33.1
18.8
27.5
28.2
25.6
20.0
15.2
8.8
7.6
Sold ha
2006
2007
2008
2009
2010
2011
2012
2013
2014
3,507
8.714
4,857
5,005
5,086
2,439
9,475
14,176
12,887
N.A
33%
20%
19%
23%
23%
17%
28%
% Over
Appraisal N.A
26
Farmland Portfolio
Cushman & Wakefield Appraisal ($ MM)
278.3K ha
4,3K ha
$59.4
2.9 %
257.1K ha
$24.5
$919.3
$884.4
257.1K ha
$185.4
C&W 2013 Appraisal
1)
2)
Farm Sales (1)
Land Transformation &
Appreciation
C&W 2014 Appraisal (2)
Farmland Book Value
In June, 2014, we completed the sale of a 49.0% interest in Global Anceo S.L.U and Global Hisingen S.L.U, two Spanish subsidiaries.
Net of minority interests
27
Financial Summary
Net Sales(1) Evolution ($ MM)
Sales Diversification (2014FY)
695
Other
592
5%
530
297
269
402
3%
11%
Corn
379
10 %
Ethanol
259
1% Wheat
2 1%
314
244
Soybean
Energy
625
204
15 %
98
Rice
51
193
216
271
327
322
316
26%
5%
0%
0%
198
Dairy
Sugar
2008
2009
2010
Farming and Land
2011
2012
2013
2014
Sugar and Ethanol
Notes
(1) Net Sales is calculated as Sales less sugar and ethanol sales taxes
28
Financial Summary
Definition of Adjusted EBITDA
 The company has prepared its financial statements in accordance with IFRS
 Based on the financials, we developed the Adjusted EBITDA metric, which allows investors to measure and compare the operating results
of the company and each operating segment.
Adj. EBITDA Evolution ($ MM)
Adj. EBITDA by Business (2014FY)
216
36%
181
150
95
141
115
110
98
3
59
52
66
67
69
(27)
(22)
(22)
(27)
2009
2010
2011
(7)
(23)
2008
154
52
29
Farming & Land Trans.
89
85
(25)
(23)
(23)
2012
2013
2014
Sugar & Ethanol
Farming &
Land
Transformation
Sugar,
Ethanol &
Energy
64%
Corporate
29
Consolidated Financial and Operational Overview
2010-2016 CAPEX Evolution
Sugar, Ethanol & Energy
Farming & Land Transformation
325
326
237
192
155
37
2010
177
295
105
72
2011
316
227
180
160
90
80
30
2012
10
2013
11
2014
2015
2016
30
Net debt
As of December 31st, 2014
4Q14 Debt Term Structure
4Q14 Net debt ($ Millions)
699
585
S&E
Farming
30%
596
70%
Short term
Long Term
114
103
Debt
Cash
Net debt
4Q14 Debt Currency Structure
2%
46%
Average Interest Rate (1)
USD
BRL
ARS
52%
(1) A s o f December 31, 2014
Brazilian Reals
US Dollars
5.0%
6.4%
15.3%
Total debt as of December 31, 2015, was of $699
million.
70% of our debt is in the long term, composed
mainly of loans from multilateral banks (BNDES
and IDB)
Net debt as of December 31, 2014, was of $585
million
Argentine Pesos
31
Agenda
I.
Adecoagro Overview
II.
Investment Highlights
III.
Value Creation & Financial Performance
IV.
Key Takeaways
V.
Appendix
32
Key Takeaways
►
WE ARE A LOW COST PRODUCER
►
We have a unique and well diversified asset
base
►
We have a proven track record of consistent
land sales generating strong capital gains
►
We have a unique sugar, ethanol and energy
business model that extracts higher value per
ton crushed
►
We have a concrete growth plan and the right
people to execute it
33
Agenda
I.
Adecoagro Overview
II.
Investment Highlights
III.
Value Creation & Financial Performance
IV.
Key Takeaways
V.
Appendix
34
Consolidated Financial and Operational Overview
Area & Production
2010
2011
2012
2013
2014
Chg%
183,454
53,799
192,207
65,308
232,547
85,663
219,305
99,409
225,331
124,412
2.7%
25.2%
618,834
4,066,115
666,589
4,168,082
738,847
4,488,935
699,179
6,417,951
848,843
7,232,827
21.4%
12.7%
2010
2011
2012
2013
2014
Chg%
Farming & Land Transformation
197,741
270,766
322,368
327,163
315,837
(3.5%)
Sugar, Ethanol & Energy
Total
204,256
401,997
258,939
529,705
271,447
593,815
297,265
624,428
378,633
694,470
27.4%
Adjusted EBITDA
2010
2011
2012
2013
2014
Chg%
Farming & Land Transformation
65,735
67,444
68,647
88,942
85,246
(4.2%)
51,735
(22,353)
95,117
109,507
(26,885)
150,066
97,505
(25,442)
140,710
115,239
(23,478)
180,704
153,532
(23,233)
215,545
27.6%
19.9%
17.3%
23.6%
23.3%
(1.2%)
19.9%
23.7%
37.1%
28.3%
31.2%
23.7%
34.8%
28.9%
37.5%
31.0%
7.6%
Farming Planted Area (ha) (1)
Sugarcane Planted Area (hect.)
(2)
Farming Production (tons)
Sugarcane Crushing (tons)
Net Sales
Sugar, Ethanol & Energy
Corporate
Total
Adjusted EBITDA Margin
Farming & Land Transformation(3)
Sugar, Ethanol & Energy
Total
(3)(4)
11.2%
33.2%
(1.0%)
19.3%
7.3%
(1) Pl a nted Area i n 2014 i s for the 2014/15 s ea s on
(2) Total Production for 2014 i s for the 2013/14 s ea s on
(3) Corpora te expens es a l l oca ted 50% to Fa rmi ng & La nd Tra ns forma tion a nd 50% to Suga r, Etha nol & Energy
(4) Ca l cul a ted over Net Sa l es . Net Sa l es i s ca l cul a ted a s Sa l es l es s s uga r a nd etha nol s a l es taxes .
35
Enhancing Margins Through Our Commercial Strategy
Risk and Commercial Committee
Competitive Advantages
 Composed by 3 Board Members + CCO + CFO.
 Own production information from our diverse locations
 Monthly meetings
 Own handling and logistic management
 Identify and asses operational and market risks
 Full use of hedging instruments
 Defines guidelines and policies for risk management
 Highly Qualified and Experienced Commercial Team
 Approves and controls Commercial and Financial
Strategy
Commercial Strategy
1
Manage production margins
2
Minimize risk exposure
3
More predictable EBITDA
4
5
Value
Creation
Strike
Price
Market
Opportunities
Margin
Land Cost
Hedge
Stabilize CASH FLOW
Premium
Minimum
Price
(Breakeven)
Direct Cost
Cash Cost




Quality
Logistics
Local Premiums
Arbitrages
 For each
product
 Own / Leased
 Inputs
 Land Labors
 Cash Cost
 Industrial cost
Enhance the commercial performance
36
High CoGen Capacity Increases Capital Efficiency
CoGen Exports per Ton of Cane Crushed
(GWh/MMT)
(GWh/MMT)(1)
Co-Generation Assets
70.0
 Long term contracts bring predictability of revenues and high returns
 Approximately 90% EBITDA margins
 Current cogeneration capacity of 152 MW (Angelica 96MW, Ivinhema
60.0
40MW and UMA 16MW), export capacity of 95MW
 Projected cogeneration capacity of 296 MW (export capacity of
206MW) in 2017 will boost projected revenues to $58MM per year
 Clean and renewable energy source
UMA +
Cluster
2014
 Sugarcane cogen complements hydropower, Brazil’s main source of
electricity – cane harvest occurs during dry season
Capacity
(MW)
Cogeneration
(MWh/year)
UMA
16
47,000
Angélica
96
Ivinhema
Total
UMA +
Cluster
2017
Hedge Price
(BRL/MWh)
Revenues (1)
(MM BRL)
98%
234
11.5
240,000
91%
210
53.6
120
298,000
48%
334
103.6
232
585,000
70%
256
168.3
Hedge
37
Productive Figures
Planted Area (thousand hectares)
250
232.6
218.6
219.3
2012/13
2013/14
225.3
192.4
200
183.5
153.0
150
119.0
97.4
100
69.7
49.4
50
36.7
26.1
0
2002/2003 2003/2004 2004/2005
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2014/15
38
Productive Figures
Key Farming Business Productive Figures
Rice (thousand tons)
Crops (thousand tons)
202.6 205.5
643.4
524.9
172.0 171.3
564.8
496.6
488.2
343.8 351.8 317.6
171.4
73.2
99.0 98.6 95.0 91.7
205.6
37.2 43.2
102.3
51.7
19.4
2002/ 2003/ 2004/ 2005/ 2006/ 2007/ 2008/ 2009/ 2010/ 2011/ 2012/ 2013/
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
2002/ 2003/ 2004/ 2005/ 2006/ 2007/ 2008/ 2009/ 2010/ 2011/ 2012/ 2013/
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Milk (million liters)
80
73
43.1
51.4
47.5
55
41.6
34.6
19.9 18.5 18.5 22.6
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
39
Productive Figures
Key Sugar, Ethanol and Energy Productive Figures
Sugarcane Crushing (million tons)
Sugarcane Plantation (thousand hectares)
7.2
6.4
124.4
99.4
88.6
4.1
4.2
4.4
2010
1011
2012
65.3
49.5
53.8
2.2
32.6
2008
1.4
2009
2010
2011
2012
2013
2014
2008
2009
Ethanol (thousand m3)
2013
Sugar (thousand tons)
413.7
299.8
268.1
174.3
161.4
2014
335.6
183.7
235.7
247.8
2010
2011
281.6
132.5
70.1
2008
2009
2010
2011
2012
2013
2014
67.8
53.0
2008
2009
2012
2013
2014
40
Thank you!
ir.adecoagro.com
Investor Relations
Charlie Boero Hughes - CFO
Email: chboero@adecoagro.com
TEL: +5411 4836 8804
Hernan Walker - IR Manager
Email: hwalker@adecoagro.com
TEL: +5411 4836 8651