Adecoagro recorded Adjusted EBITDA of $140.7 million in 2012

         Adecoagro recorded Adjusted EBITDA of $140.7 million in 2012

PR Newswire

LUXEMBOURG, March 21, 2013

LUXEMBOURG, March 21, 2013 /PRNewswire/ -- Adecoagro S.A. (NYSE: AGRO,
Bloomberg: AGRO US, Reuters: AGRO.K), one of the leading agricultural
companies in South America, announced today its results for the fourth quarter
and full year of 2012. Main highlights for the period:

  oIn 4Q12, Adecoagro recorded Adjusted EBITDA of $68.5 million and an
    Adjusted EBITDA margin of 40.0%, compared to $24.1 million and 16.4%
    respectively in 4Q11. Adjusted EBITDA for 2012 reached $140.7 million,
    6.2% below 2011.
  oThe Sugar, Ethanol and Energy business delivered a strong fourth quarter.
    In 4Q12 Adjusted EBITDA was $42.3 million and Adjusted EBITDA margin was
    43.2%, compared to $22.6 million and 28.8% respectively in 4Q11. Positive
    performance was driven by the delay in the start of harvest, which
    resulted in higher sugarcane volumes to be milled in 4Q12 and a 12%
    increase in total recoverable sugar ("TRS") per hectare. As a result, cane
    crushing increased by 89.8% and product sales rose 17.6%.
  oThe 2012 fiscal year for the Sugar, Ethanol and Energy business concluded
    with $97.5 million of Adjusted EBITDA, 11.0% below the $109.5 million
    generated in 2011. The decrease is primarily explained by lower sugar
    prices in 2012. Our sugarcane plantation grew by 20,355 hectares during
    2012. We expect this growth will allow us to maximize capacity utilization
    at the Angelica and UMA mills and begin milling operations at the Ivinhema
    mill, in the upcoming 2013 harvest season.
  oThe Farming and Land Transformation businesses' Adjusted EBITDA in 4Q12
    was $32.7 million, $24.6 million higher than 4Q11. This increase is mainly
    explained by: (i) higher biological asset margins from crops and rice in
    4Q12 than those realized in 4Q11, which had been impacted by the summer
    drought suffered during November and December 2011; and (ii) the sale of
    the Santa Regina farm, which generated a $19.4 million gain in 4Q12
    compared to $8.8 million gain generated from the sale of La Alegria farm
    in 4Q11.
  oOn an annual basis, Adjusted EBITDA in 2012 was $68.6 million, 1.8% higher
    than 2011. The increase is primarily explained by: (i) the land
    transformation business which generated a gain of $27.5 million from farm
    sales in 2012 compared to $8.8 million in 2011; and (ii) offset by the
    lower performance of the farming business in 2012, primarily as a result
    of the climatic difficulties experienced during the 2011/12 harvest year
    that impacted yields and margins.
  oConsolidated Net Income in 2012 totaled $9.3 million, $47.6 million lower
    than 2011. The decrease is mainly explained by: (i) a $27.3 million
    non-cash loss generated by the mark-to-market of our long term biological
    assets (primarily sugarcane), compared to a $8.9 million gain generated in
    2011; and (ii) a $9.4 million lower Adjusted EBITDA, primarily as a result
    of lower sugar prices.
  oThe construction of the first phase of the Ivinhema mill was completed.
    Test runs were succesfully completed during November and December and the
    mill is now on plan to commence milling operations in April 2013, when the
    sugarcane harvest year begins. Ivinhema currently has 2.0 million tons of
    crushing capacity. During the next five years, Adecoagro expects to
    complete the construction of the second and third phase of the mill,
    reaching a total of 4.0 million tons of capacity in 2015, and 6.3 million
    tons of crushing capacity in 2017.
  oAdecoagro raised a total of R$680.4 million to finance the construction of
    the Ivinhema Mill at an average rate of 4.14% in Reals. On December 27,
    2012, Adecoagro Vale do Ivinhema, a Brazilian wholly owned subsidiary,
    entered into a loan agreement with the Brazilian development bank, Banco
    Nacional de Desenvolvimento Econômico e Social (BNDES), in an amount equal
    to R$488.6 million, of which (i) R$215.4 million is a direct loan from
    BNDES, called BNDES Direto, with a 10-year tenor and a 2-year grace
    period, bearing interest at an average of 3.34%, and (ii) R$273.2 million
    is an indirect loan through Banco do Brasil and Itaú BBA, called BNDES
    Indireto, also with a 10-year tenor and a 2-year grace period, bearing an
    average interest rate of 5.69%.
  oIn addition to the BNDES loan, Adecoagro obtained a R$130.0 million FCO
    loan through Banco do Brasil and a R$45.9 million loan with Itaú BBA
    (FINAME PSI), both with a 10-year tenor and a 3-year and 2-year grace
    period, respectively, bearing interest rate at an average of 2.50%, and
    other credits in the amount of R$ 15.9 million.
  oDuring 2012, Adecoagro completed the sale of two farms, namely San Jose
    and Santa Regina(3). Both sales were completed at a premium to the Cushman
    & Wakefield independent appraisal dated September 2011 and September 2012,
    respectively. After accounting for the purchase price, capital
    expenditures incurred in land transformation, the operating cash flows and
    the selling price of these two farms, the internal rates of return of the
    investments in nominal dollar terms were 31.8% and 34.2%, respectively.

The foregoing highlights are only a summary of our results for the fourth
quarter and 2012 fiscal year. You should read the full 4Q12 earnings release,
including a reconciliation of Adjusted EBITDA to IFRS, that is available
through our website at A conference call to discuss 4Q12
results will be held tomorrow with live webcast through the internet:

English Conference Call
Mar 22nd, 2013
11 a.m. (US EST)
12 p.m. Buenos Aires
12 p.m. Sao Paulo
4 p.m. Luxembourg

Tel: (877) 317-6776
Participants calling from the US
Tel: +1 (412) 317-6776
Participants calling from other countries
Access Code: Adecoagro

About Adecoagro:
Adecoagro is a leading agricultural company in South America. Adecoagro owns
over 283 thousand hectares of farmland and several industrial facilities
spread across the most productive regions of Argentina, Brazil and Uruguay,
where it produces over 1 million tons of agricultural products including corn,
wheat, soybeans, rice, dairy products, sugar, ethanol and electricity among

SOURCE Adecoagro S.A.

Contact: Investor Relations Department, Charlie Boero Hughes, CFO, or Hernan
Walker, IR Manager, Tel: +54 (11)4836-8651, Email:
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