iq17 conference call - cresudinvestment in irsa: israel business center 13 o idbd subsidiary dic...
TRANSCRIPT
IQ17 Conference CallNovember 14, 2016
Hosted by: Alejandro Elsztain, CEO
Carlos Blousson, General Manager of Argentina & Bolivia
Matías Gaivironsky, CFO
San Pedro Farm – Entre Ríos, Argentina
Highlights for IQ17
22
2
2
22
2
Financial Consolidated Results IQ17
o Overall Good weather conditions in the region and sustained commoditiy prices expected for FY 17 Campaign
o We expect to plant 196,000 ha and develop 12,900 ha in the region in 2017
o Start of cattle activity in Brazil during IQ17
o We sold a farm in Argentina for USD 6 million in the first quarter of FY 2017
o CRESCA Shareholders´ Agreement signed on Oct-2016: Our subsidiary Brasilagro and Carlos Casado agreed to sell to third partiesor divide in equal parts all of their assets, including rural properties, within 120 days
Agribusiness
2
Urban Properties & Investments
o Good operating results from Argentina Business Center. EBITDA, excluding sales of investment properties grew by 24% in IQ17 vs IQ16
o Net Income affected by higher financial costs due to IDBD consolidation
o During IQ17 IRSA acquired from IDBD 8.8% of DIC shares for approximately USD 26.7 million
oRevenues: ARS 19.7 billion (ARS 2.0 billion coming from agribusiness and Argentina Urban Business Center)
oOperating Income: ARS 1.1 billion (ARS 0,4 billion coming from agribusiness and Argentina Urban Business Center)
oNet Income: Loss of ARS 873 million (Loss of ARS 55 million coming from agribusiness and Argentina Business Center)
o To Cresud’ Shareholders: Loss of ARS 485 million (vs. Loss of ARS 289 million in IQ16)
2
123 106
124
69
51
50
16
16
16
6
6
6
214
179
196
FY15 FY16 FY17E
Brazil Bolivia Paraguay Total
Planted & Developed Area FY 2017e
3*Includes 100% Brasilagro and double crop & Agrouranga 3
Developed Area(Th. Ha)
Planted Area(Th. Ha)
-16% +9%
1,7 3,0 1,8
7,5 3,69,6
2,41,4
1,611,6
8,03
13,0
FY 2015 FY 2016 FY 2017E
Argentina Brazil Paraguay
-31% +62%
Farmland Sale in Argentina
4
15,3
73.4
88.7
Profit
BV
Farmland Sale(ARS Million)
Sale at ~ 6x BV
Results were recognized during IQ17
IRR (USD): 4%
Farming: Production Forecast & Global Stocks
5
CornSoybean
28% 25% 11%
Var % YoYVar % YoY
0% 5% 8%
USDA Production Forecast
Stock / ConsumptionStock / Consumption
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
US
World
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
US
World
29 29 37
8567 84
361 345382
2014/2015 2015/2016 2016/2017E
Argentina
Brazil
USA
61 57 57
97 97 102107 107116
2014/2015 2015/2016 2016/2017E
Argentina
Brazil
USA
Good weather conditions for 2017 Campaign
ARGENTINA BRASIL
Commodity Prices – USD/tn
Soybean Corn
Var % YoY
366 USD/tn
135 USD/tn
Var % YoY
IQ17-6%
16,7%
-4,3%
6
IQ17-18%
Farming: Sugarcane, Cattle & Milk Production
Sugarcane Production(Th Tonnes)
7
Crop Production(Th Tonnes)
1,2
1,51,9
66
69
75
sep-14 sep-15 sep-16
Milla
resMeat Production
Beef cattle production (Th. Tn) (ytd) Total (Th. Heads)
4,6 4,5
4,1
2,21,9 1,8
22,2 24,9 24,1
sep-14 sep-15 sep-16
Milk Production
Milk Production (Lts M.) (ytd)
Daily Milking Cows (Th. Heads) (ytd)
Milk Production/ Cow / Day (Lts) (ytd)
442
556
416
sep-14 sep-15 sep-16
215
169
225
sep-14 sep-15 sep-16
Investment in IRSA: Argentina Business Center
CRESUD has a 63.4% stake in IRSA, Argentinean Leading Real Estate Company
8
Shopping Tenants’ Sales (Quarterly Growth %)
Offices – Leases USD/sqm/mth & Occupancy
28,5% 28,6%29,9% 30,0%
27,1%
35,6% 35,5%34,3%
44,5%
35,7%
29,0%
34,3%
21,0%
IQ 14 IIQ 14 IIIQ 14 IVQ 14 IQ 15 IIQ 15 IIIQ 15 IVQ 15 IQ 16 IIQ 16 IIIQ 16 IVQ 16 IQ17
307.720 310.254
334.055 335.032
IQ14 IQ15 IQ16 IQ17
98,60% 98,50% 98,90% 98,40%
Stock (GLA) & Occupancy %
26,0 26,3 26,6 25,9 25,0
96,4%94,0% 93,1%
98,6%100,0%
3M 16 6M 16 9M16 FY 16 3M17
Investment in IRSA: Israel Business Center
13
o IDBD subsidiary DIC accepted an offer from ChemChina to sell its 40% stake in Adama for USD 230 million in excess of the total cancellation of thedebt. We expect to close the transaction by November 2016. DIC’s net cash flow ~ NIS 800 millions
o Clal’ share increased by 4% in the IQ17 vs last quarter. Gain of ARS 181 million
o Regarding IDBD NIS 325 million issuance, the Court rejected to pledge Clal shares and we had to cancel NIS 244 million. The balance (26% of thetotal issuance) is subject to Clal’ pledge approval.
oCompanies’ new issuances:
DIC: NIS 360 million at 5.7% fixed rate due 2025 • PBC (Sep-16): NIS 600 million. 500M at 3.95% fixed rate and 100M at 2,85% + CPI. Maturity 2029• MATAM (Aug 16): NIS 400 million at 3.10% fixed rate. Maturity 2027• CELLCOM (Sep-16): NIS 300 million at 3,55% fixed rate and NIS 100 million 2,45% + CPI due 2026
o IRSA acquired from IDBD 8.8% of DIC shares for approximately USD 26.7 million
As of September 30, 2016 IRSA controls, through Dolphin, 68.3% of IDBD – Amount invested USD 515 MM
Ownership Structure (June 30, 2016)
Latest Developments
Ownership Structure (September 30, 2016)
IRSA IRSA
8,8%
76,4% 54,9%
CLALDIC
68,3% 31,7%
Dolphin IFISA
IDBD
67,6% 54,9%
CLALDIC
68,3% 31,7%
Dolphin IFISA
IDBD
9
Agroriego Farm – San Luis, Argentina
Financial Results
-2
68
Operating Income by Segment IQFY17 (in ARS MM)
311
Farmland Sales Farming OthersIncludes Agro-Industrial, Agriculture
Rentals and services and FyO
IQFY2016 IQFY2017 IQFY2016 IQFY2017
AGRIBUSINESS
11
Cattle
Grains Sugarcane
Milk
-26
-135
11 10
-8
-8
-3
-2
-26
-135,0
-8
49
414.0
537.0
Operating Income by Segment IQFY17 (in ARS MM)
31711
URBAN PROPERTIES & INVESTMENTS – Argentina Business Center
Rental Segment(ARS million)
Sales & Development(ARS million)
Financial & Others(ARS million)
URBAN PROPERTIES & INVESTMENTS – Israel Business Center
-30%
+30%
344.0
-51,0-35.0 -27,0
1Q FY16 1Q FY17 1Q FY16 1Q FY171Q FY16 1Q FY17
355449
80
-185
501
759886
-17
Real Estate Supermarkets Telecommunications Others
Operating Income
EBITDA
12
-15 -83 -84-37-9 -38
449
-426
29
717
-438 -318
699
-1056
-818
Consolidated Financial Results IQ FY2017 – ARS MM
31113
-485
-388Non-controling intereset
Controlling shareholders
Operating Income Net Financial Results Net Loss
680
1,133
-447
-1,565
-356
-873Argentina Business Center
Israel Business Center
Agri-business
IQ FY2017IQ FY2016
Net Financial Results Main Effects – IQ17
Agribusiness Net Financial Costs: Loss of ARS 68 million Net FX Losses: Loss of ARS 63 million
Urban Business & investments: Argentina Business Center Net Financial Costs: Loss of ARS 262 million Net FX Losses: Loss of ARS 153 million
Urban Business & investments: Israel Business CenterNet Financial Costs: Loss of ARS 1,321 million FV of CLAL: Gain of ARS 181 MM
Cresud Stand Alone Debt as of September 30, 2016
14
AgribusinessAmount
(USD MM)
Cresud Total Debt 301.7
Cash & ST Investments 32.0
Cresud Net Debt 269.7
Debt Description
19,9
48,6
127,5
58,8 46,9
2016 2017 2018 2019 2020-2022
Debt Amortization Schedule
(Cresud Standalone - USD million)
Cautionary Statement
ALEJANDRO ELSZTAIN – CEOMATÍAS GAIVIRONSKY - CFOTel +(54 11) 4323 7449
Corporate OfficesIntercontinental PlazaMoreno 877 23° FloorTel +(54 11) 4323 7400Fax +(54 11) 4323 7480C1091AAQ - City of Buenos Aires -Argentina
Independent AuditorsPricewaterhouseCoopers ArgentinaTel +(54 11) 4850 0000Bouchard 557 7º FloorC1106ABG – City of Buenos Aires -Argentina
NASDAQ Symbol: CRESYBASE Symbol: CRES
www.cresud.com.arContact e-mail: [email protected]
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Investing in all equities, including natural resources and real estate-related equities, carries risks which should be taken intoconsideration when making an investment.
This institutional presentation contains statements that constitute forward-looking statements, in that they include statementsregarding the intent, belief or current expectations of our directors and officers with respect to our future operating performance.You should be aware that any such forward looking statements are no guarantees of future performance and may involve risks anduncertainties, and that actual results may differ materially and adversely from those set forth in this presentation. We undertakeno obligation to release publicly any revisions to such forward-looking statements to reflect later events or circumstances or toreflect the occurrence of unanticipated events.
Additional information concerning factors that could cause actual results to differ materially from those in the forward-lookingstatements can be found in the companies’ Forms 20-F for Fiscal Year 2016 ended June 30, 2016, which are available for you inour websites.
Contact Information
@cresudir