6-K 1 t1700674_x1-6k.htm FORM 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer  

Pursuant to Rule 13a-16 or 15d-16  

under the Securities Exchange Act of 1934

For the month of March, 2017

Commission File Number 001-35052

Adecoagro S.A.

(Translation of registrant’s name into English)

13-15 Avenue de la Liberté  

L-1931 Luxembourg

R.C.S. Luxembourg B 153 681

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  x            Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ¨            No  x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-            .

ANNOUNCEMENT OF RESULTS OF OPERATIONS FOR THE TWELVE MONTH PERIOD
ENDED DECEMBER 31, 2016

On March 16, 2017, the registrant issued a press release pertaining to its results of operations for the twelve month period ended December 31, 2016 (the “Release”). Registrant hereby furnishes the attached copy of the Release to the Securities and Exchange Commission. The financial and operational information contained in the Release is based on audited consolidated financial statements presented in U.S. dollars and prepared in accordance with International Financial Reporting Standards.

The attachment contains forward-looking statements. The registrant desires to qualify for the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995, and consequently is hereby including cautionary statements identifying important factors that could cause the registrant’s actual results to differ materially from those set forth in the attachment.

The registrant’s forward-looking statements are based on the registrant’s current expectations, assumptions, estimates and projections about the registrant and its industry. These forward-looking statements can be identified by words or phrases such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “is/are likely to,” “may,” “plan,” “should,” “would,” or other similar expressions.

The forward-looking statements included in the attached relate to, among others: (i) the registrant’s business prospects and future results of operations; (ii) weather and other natural phenomena; (iii) developments in, or changes to, the laws, regulations and governmental policies governing the registrant’s business, including limitations on ownership of farmland by foreign entities in certain jurisdictions in which the registrant operate, environmental laws and regulations; (iv) the implementation of the registrant’s business strategy, including its development of the Ivinhema mill and other current projects; (v) the registrant’s plans relating to acquisitions, joint ventures, strategic alliances or divestitures; (vi) the implementation of the registrant’s financing strategy and capital expenditure plan; (vii) the maintenance of the registrant’s relationships with customers; (viii) the competitive nature of the industries in which the registrant operates; (ix) the cost and availability of financing; (x) future demand for the commodities the registrant produces; (xi) international prices for commodities; (xii) the condition of the registrant’s land holdings; (xiii) the development of the logistics and infrastructure for transportation of the registrant’s products in the countries where it operates; (xiv) the performance of the South American and world economies; and (xv) the relative value of the Brazilian Real, the Argentine Peso, and the Uruguayan Peso compared to other currencies; as well as other risks included in the registrant’s other filings and submissions with the United States Securities and Exchange Commission.

These forward-looking statements involve various risks and uncertainties. Although the registrant believes that its expectations expressed in these forward-looking statements are reasonable, its expectations may turn out to be incorrect. The registrant’s actual results could be materially different from its expectations. In light of the risks and uncertainties described above, the estimates and forward-looking statements discussed in the attached might not occur, and the registrant’s future results and its performance may differ materially from those expressed in these forward-looking statements due to, inclusive, but not limited to, the factors mentioned above. Because of these uncertainties, you should not make any investment decision based on these estimates and forward-looking statements.

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The forward-looking statements made in the attached relate only to events or information as of the date on which the statements are made in the attached. The registrant undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Adecoagro S.A.
	By	/s/ Carlos A. Boero Hughes
	Name:	Carlos A. Boero Hughes
	Title:	Chief Financial Officer and Chief Accounting Officer

Date: March 16, 2017

4Q16 | 2016 4Q16 / 2016 Earnings Release Conference Call

Conference Call

March 17, 2017 11 a.m. (US EST) 12 p.m. Buenos Aires time 12 p.m. São Paulo time 4 p.m. Luxembourg time Tel: +1 (844) 836-8746 Participants calling from the US Tel: +1 (412) 317-2501 Participants calling from other countries Access Code: Adecoagro

Investor Relations

Charlie Boero Hughes CFO Hernan Walker IR Manager

Email ir@adecoagro.com Website www.adecoagro.com

Adecoagro’s Adjusted EBITDA in 4Q16 was $113.9 million, 42.3% higher year-over-year, driving 2016 full year Adjusted EBITDA to a record $298.0 million

Luxembourg, March 16, 2017 – 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 full year and fourth quarter period ended on December 31, 2016. The financial information contained in this press release is based on audited consolidated financial statements presented in US dollars and prepared in accordance with International Financial Reporting Standards (IFRS), except for Non – IFRS measures. Please refer to page 30 for a definition and reconciliation of the Non – IFRS measures used in this report.

Highlights Financial & Operating Performance

$ thousands 4Q16 4Q15 Chg % 2016 2015 Chg %

Gross Sales 332,088 218,668 51.9% 869,235 674,314 28.9%

Net Sales (1) 319,288 209,761 52.2% 841,354 648,669 29.7%

Adjusted EBITDA (2)

Farming & Land Transformation 6,629 35,490 (81.3%) 53,962 70,498 (23.5%)

Sugar, Ethanol & Energy 112,067 50,355 122.6% 265,044 167,180 58.5%

Corporate Expenses (4,844) (5,820) (16.8%) (20,957) (21,776) (3.8%)

Total Adjusted EBITDA 113,852 80,025 42.3% 298,049 215,902 38.0%

Adjusted EBITDA Margin (2) 35.7% 38.2% (6.5%) 35.4% 33.3% 6.4%

Adj. EBITDA Margin net of 3rdparty commerc.(3) 41.5% 43.3% (4.2%) 41.7% 36.1% 15.5%

Net Income 11,930 (9,598) n.a 3,739 (4,351) n.a

Farming Planted Area (Hectares) 224,716 224,343 0.2% 224,716 224,343 0.2%

Sugarcane Crushed (thousand tons) 3,118 1,794 73.8% 11,115 8,335 33.3%

Adjusted EBITDA(2) in 4Q16 totaled $113.9 million, 42.3% higher than 4Q15.

Full year 2016 Adjusted EBITDA was $298.0 million, 38.0% above the previous year.

Delivered positive cash in 2016. Free Cash Flow(4) from Operations in 2016 was $133.3 million, while Free Cash Flow(4) was $84.9 million.

(1) Net Sales are calculated as Gross Sales net of sugar, ethanol and energy sales taxes.

(2) Please see “Reconciliation of Non-IFRS measures” starting on page 30 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/Loss. Adjusted EBITDA is defined as consolidated profit from operations before financing and taxation, depreciation, amortization plus the gains or losses from disposals of non-controlling interests in subsidiaries. Adjusted EBIT is defined as consolidated profit from operations before financing and taxation plus the gains or losses from disposals of non-controlling interests in subsidiaries. Adjusted EBITDA margin and Adjusted EBIT margin are calculated as a percentage of net sales.

(3) Adjusted EBITDA margin excluding third party commercialization activities is defined as the consolidated Adjusted EBITDA net of the Adjusted EBITDA generated by the commercialization of third party sugar, grains and energy, divided by consolidated net sales net of those generated by the commercialization of third party sugar, grains and energy. We net 3rd party commercialization results to highlight the margin generated by our own production. Third party commercialization

(4) Please see “Reconciliation of Non-IFRS measures” starting on page 30 for a reconciliation of Free Cash Flow to Cash and cash equivalents at end of period. Free Cash Flow is defined as Net cash generated from operating activities plus net cash used in investing activities, plus interest paid. Net Cash Flow from Operations is defined as Free Cash Flow excluding expansion capex.

 Financial and Operational Performance Sugar, Ethanol & Energy The Sugar, Ethanol & Energy business delivered outstanding operational and financial performance in the fourth quarter of 2016. The combination of dry weather, availability of sugarcane and operational efficiency enabled our mills to crush 3.1 million tons of sugarcane, 73.8% higher than 4Q15. In addition, improved sugarcane productivity resulted in a 1.8% increase in TRS per hectare. These factors have contributed to significant growth both in production and sales volumes and dilution of fixed costs. Adjusted EBITDA in 4Q16 reached $112.1 million, 122.6% higher than 4Q15. Adjusted EBITDA margin grew from 35.0% to 43.2%, while Adjusted EBITDA margin excluding third party commercialization activities⁽¹⁾ grew from 39.5% to 48.4%. In addition to the operational enhancements described above, financial performance was improved by (i) a 51.0% and 36.4% increase in sugar and ethanol average realized selling prices, respectively; (ii) a 13.1% decrease in unitary production costs; and (iii) a $16.2 million gain from the mark-to-market effect of our sugar hedge position compared to a $9.7 million loss in 4Q15. Results were partially offset by a $24.8 million loss from changes in fair value of unharvested sugarcane (to be harvested in the next twelve months), as a result of slightly lower sugar futures prices and lower estimated sugarcane productivity as our plantation stabilizes. On a full year basis, Adjusted EBITDA in 2016 grew 58.5% to $265.0 million. Adjusted EBITDA margin grew from 44.6% to 46.6%, while Adjusted EBITDA margin excluding third party commercialization⁽¹⁾ grew from 50.0% to 54.7%. This growth is primarily due to (i) a 33.3% increase in sugarcane crushing as a result of the “continuous harvest” model, which coupled with a higher sugar mix has resulted in a 50.8% growth in sugar production and an 43.6% increase in sugar sales volumes; (ii) higher sugar and ethanol average realized prices, up 29.6% and 25.5% respectively; and (iii) enhanced agricultural productivity complemented by the devaluation of the BRL, which resulted in a 4.6% dilution of production costs per ton of sugarcane crushed, year-over-year. Results were partially offset by (iv) a $7.9 million reduction in gains from changes in fair value of our unharvested sugarcane (to be harvested in the next 12 months), mainly as a result of slightly lower sugar futures prices and lower estimated sugarcane yields as a result of the stabilization of our plantation; and (vi) a $6.7 million loss from the mark-to-market effect of our sugar hedge position, compared to a $7.3 million gain in 2015. Farming & Land Transformation Adjusted EBITDA for the Farming business in 4Q16 was $6.6 million, marking a $4.9 million decrease compared to the same period of the previous year. This reduction is mainly explained by extraordinary gains generated in 4Q15 from the mark-to-market of grain inventories and commodity derivatives amounting to $6.1 million. Regarding our Land Transformation business, we did not sell any farms in 4Q16, compared to a $24.0 million gain from the sale of three farms in 4Q15. (1) Adjusted EBITDA margin excluding third party commercialization activities is defined as the consolidated Adjusted EBITDA net of the Adjusted EBITDA generated by the commercialization of third party sugar and energy, divided by consolidated net sales excluding of those generated by the commercialization of third party sugar and energy.  2

On a full year basis, Adjusted EBITDA for the Farming business was $53.9 million, marking a $7.4 million or 16.0% increase with respect to the same period of last year. This increase is mainly due to higher margins driven by the elimination of export taxes, export controls and enhanced by the devaluation of the Argentine peso. Margins were partially offset by the mark-to-market effect of our hedging position. In 2016, as a result of the rebound in international soybean and corn prices, our derivatives hedge position generated an $8.8 million loss, compared to a $16.4 million gain booked in 2015. Net income in 4Q16 was $11.9 million, $21.5 million higher than 4Q15. The 42.3% increase in Adjusted EBITDA was partially offset by (i) a $16.1 million increase in depreciation and amortization expenses; and (ii) a $12.6 million increase in accrued income taxes. Net Income in 2016 totaled $3.7 million, $8.1 million higher compared to the previous year. The growth in net income is attributed to the above explained factors which resulted in a $82.1 million increase in Adjusted EBITDA. This was partially offset by (i) a $23.1 million increase in depreciation and amortization expenses; (ii) a $49.7 million increase in non-cash foreign exchange losses resulting from the devaluation of the Argentine Peso and slightly offset by the appreciation of the Brazilian Real; and (iii) a $17.3 million increase in accrued income taxes. Strategy Execution Commencement of Positive Free Cash Flow Cycle The conclusion of our heavy capex cycle initiated in 2008, coupled with the ramp-up and consolidation of our operations, especially our Sugar, Ethanol & Energy cluster, have marked 2016 as milestone year for Adecoagro. After eight years of large investments, our operations have delivered $133.3 million of Free Cash Flow from Operations (FCF before expansion capex) and $84.9 million of Free Cash Flow in 2016. We believe the solid growth in Adjusted EBITDA and Free Cash Flow is a strong indication of (i) the quality of the assets we have built, (ii) the focus and dedication of our operating teams seeking to maximize productivity and efficiency, and (iii) the benefits of our determination to be the lowest-cost producers for each of the commodities we produce, and our commitment to generating sustainable long term returns for our shareholders. Free Cash Flow Summary $ thousands 2016 2015 Chg % Net cash generated from operating activities 255,401 145,186 75.9% Net cash used in investing activities (122,014) (125,051) (2.4%) Interest paid (48,400) (48,438) (0.1%) Proceeds from the sale of minority interest in subsidiaries - 21,964 Expansion Capex reversal 48,295 87,956 (45.1%) Free Cash Flow from Operations(1) 133,282 81,617 63% Expansion Capex(2) (48,295) (87,956) (45.1%) Free Cash Flow(1) 84,987 (6,339) n.a  3

Balance Sheet Optimization As discussed in previous quarters, one of our main goals during 2016 was to continue reducing our outstanding debt. As of December 31, 2016, our Net Debt was $476.8 million, 25.5% below 3Q16 and 9.1% below 4Q15. The combination of decreasing debt coupled with growing Adjusted EBITDA, has resulted in a Net Debt-to-Adjusted EBITDA ratio of 1.6x, compared to 2.4x a year ago. In addition, the fact that almost 70% of our debt is long term, mostly with multi-lateral banks such as IFC, IDB and BNDES, allows us to minimize refinancing risk and manage credit market volatility. Sugar, Ethanol & Energy: Cluster Expansion Plan The construction of the cluster was completed in 2015 and the “continuous” or “non-stop” harvest methodology has been successfully implemented during the course of 2016 and we are now operating at full capacity. Accordingly, our operating teams are focused on finding ways to continue maximizing efficiency and generating additional synergies and cost dilution. In this process, our teams have identified certain bottlenecks in our industrial operations that may be removed with minimal investments which will allow us to increase crushing volumes per hour and total capacity per year. We are now engaged in an organic growth project to address this expansion in production. The growth project consists of expanding the crushing capacity of our cluster by 3.0 million tons or 30%, from 10.0 million tons currently, to 13.0 million tons (from 11.2 million to 14.2 million on a consolidated basis). The project will be implemented during the next five years in two phases: - Phase 1 consists of expanding Angelica’s crushing capacity by 0.9 million tons throughout 2017 and 2018. We will expand crushing capacity by 150 tons/hour by installing larger mill rollers in the first mill, and expanding the sugar centrifugation and ethanol filtration processes. Crushing will grow gradually and reach full capacity by 2019. - Phase 2 will consist of expanding Ivinhema’s capacity by 2.1 million tons (400 tons/hour), between 2018 and 2022. This will be achieved by installing a new mill (#6) expanding the sugarcane reception, juice treatment and sugar factory. Crushing will grow gradually and reach full capacity in 2023. Total estimated capital expenditure is $166 million (52 USD/ton), of which 20% consists of industrial machinery and equipment, 15% of agricultural equipment (harvesters, tractors, trucks) and 65% of sugarcane planting (51,000 hectares) to supply the new nominal capacity. 55% of the capex will be deployed during 2017-2019, and 45% during 2020-2022. We are confident on our ability to execute this growth project according to plan. We believe that this organic expansion is highly accretive and an attractive use of our capital. (1) Please see “Reconciliation of Non-IFRS measures” starting on page 30 for a reconciliation of Free Cash Flow to Cash and cash equivalents at end of period (2) Expansion capex is defined as the necessary investment to expand current production capacity. Total Capex for 2016 and 2015 was $133.2 million and $149.8 million, respectively. 4

Market Outlook According to USDA’s February report, sugar prices peaked in October on expectations of smaller supply coming out of Brazil center-south region and, consequently, financial investors formed a record long position in sugar futures. Despite the constructive supply and demand outlook, financial investors started liquidating their long position in November and early December, pressuring prices strongly to the lowest level in the last 6-months. However, news regarding growing production shortages in India and the potential need to turn to the world market for imports became widespread during the last week of December, resulting in a strong rebound in prices offsetting most of the losses seen earlier in the month. Ethanol prices rallied during 4Q16 as we moved into the end of the harvest season. According to ESALQ (Escola Superior de Agricultura Luiz de Queiroz), hydrous and anhydrous prices increased 19% in average throughout the quarter. Compared to same period of last year, hydrous prices improved by 13% and anhydrous 10%, as a result of lower ethanol production year-over-year and low inventory levels. According to USDA’s February report, soybean, wheat and corn prices during 4Q16 rallied 11.7%, 14.1% and 7.8%, respectively. Wheat prices found support from lower-than-expected US seeding area, as producers opt for alternatives in light of three consecutive years of falling prices. Soybeans prices were supported by concerns over South America final production, as Argentina received heavy rains in January, and strong demand, especially US soybeans export demand. 5

Operating Performance Farming Business Farming Production Data Planting & Production Planting Plan (hectares) 2016/17 Planting Progress 2016/2017E 2015/2016 Chg % Planted % Soybean 55,215 59,474 (7.2%) 55,215 100.0% Soybean 2nd Crop 29,251 28,903 1.2% 29,251 100.0% Corn (1) 44,998 38,663 16% 44,731 99.5% Corn 2nd Crop 9,982 3,994 149.9% 9,982 100.0% Wheat (2) 38,008 32,396 17.3% 38,008 100.0% Sunflower 5,413 9,547 (43.3%) 5,413 100.0% Cotton 2,121 - n.a 2,121 - Total Crops 184,988 172,976 6.9% 184,721 99.9% Rice 39,728 37,580 5.7% 39,728 100.0% Total Farming 224,716 210,556 6.7% 224,449 99.9% Owned Croppable Area 121,260 120,065 1.0% Leased Area 70,517 64,486 9.4% Second Crop Area 32,939 26,005 26.7% Total Farming Area 224,716 210,556 6.7% (1) Includes sorghum and peanuts (2) Includes barley. 2016/17 Harvest Year During the second half of 2016, we began our planting activities for the 2016/17 harvest year. Planting activities continued throughout early 2017, and as of the date of this report we have seeded a total of 224,449 hectares. Our owned croppable area, which is the area that provides the highest EBITDA contribution, has increased 1.0%. Leased area, which varies in size on the basis of return on invested capital, has also increased by 9.4%. Our double crop area increased by 26.7% driven by the elimination of wheat and corn export taxes, which resulted in improved margins for these crops when compared to soybean. The current conditions of our crops are very good and soil humidity levels are excellent. The end of the planting season was slightly delayed due to heavy rainfalls during January and early February. Excess rains caused flooding and damages in specific regions of Argentina, especially in the north-west of Buenos Aires province and north-west provinces. However, our farms were only marginally affected. As a result of excess humidity, we reduced our planting plan by approximately 5,000 hectares or 2% of expected planting area. Despite these minimal area losses, most of the planted crops have developed above expectations and rains have guaranteed a very good supply of water in the soil, which will be vital for crop flowering and development in the coming months. 6

Overall, this situation highlights the quality and commitment of our farming team and reinforces the benefits of geographic diversification to mitigate weather risk. Due to climatic condition, we are expecting a humid and complicated harvest full of logistical challenges. Nonetheless, our teams have already begun logistic preparations, including road improvements, clearing drainage ditches and securing availability of harvesters and trucks, among others. Crops Update Soybean: 55,215 hectares were successfully planted, which represents 100.0% of our revised planting plan. We planted the soybean crop between mid-October and December according to schedule. The crop began its growth cycle favored by adequate rainfalls during the summer time. Soybean 2nd crop: As of the day of this report, our planting plan was successfully executed. Crop development has been very good. Corn: As of late February 2016, 99.5% of our corn crop had been seeded. As you can see in the table above, corn hectares have considerably increased compared to the previous harvest year. This was driven by margin improvement as a result of the elimination of the export taxes and export quotas. In an effort to diversify our crop risk and minimize our water requirements, 26% of the area was planted with early corn seeds in September and the remaining 74% of the area was planted with late seed varieties during the end of November and December of 2016. The early corn grew under very good conditions favored by adequate rains in December 2016 and January 2017, which occurred during the plant flowering or critical growth stage resulting in higher than expected yields. The late corn planted areas are expected to develop normally. Sunflower: Sunflower seeding operations began in mid-September 2016 with 5,413 hectares successfully seeded by January 2017. Area was reduced versus last year and shifted towards corn. The crop has developed normally and will be harvested during March. Rice: Our rice planting plan that began in August 2016 was successfully completed as of October 31, 2016. Planted area totaled 39,728 hectares, 5.7% above that of the 2015/16 harvest year. The harvest has begun mid-January and is expected to continue until mid-March. Wheat: As of January 30, 2017, the harvest was completed with 38,008 hectares harvested. Average yield for the wheat crop was 3.02 tons per hectare, 19% higher than the previous harvest year. Wheat area has also grown driven by the elimination of taxes and export controls. 7

Financial Performance Farming & Land Transformation Businesses Farming & Land transformation business - Financial highlights $ thousands 4Q16 4Q15 Chg % 2016 2015 Chg % Gross Sales Farming 59,816 66,014 (9.4%) 272,543 273,692 (0.4%) Total Sales 59,816 66,014 (9.4%) 272,543 273,692 (0.4%) Adjusted EBITDA (1) Farming 6,629 11,510 (42.4%) 53,962 46,518 16.0% Land Transformation - 23,980 n.a - 23,980 n.a Total Adjusted EBITDA (1) 6,629 35,490 (81.3%) 53,962 70,498 (23.5%) Adjusted EBIT (1)(2) Farming 5,126 9,407 (45.5%) 48,671 39,372 23.6% Land Transformation - 23,980 n.a - 23,980 n.a Total Adjusted EBIT (1)(2) 5,126 33,387 (84.6%) 48,671 63,352 (23.2%) Adjusted EBIT for the Farming business was $48.7 million, 23.6% or $9.3 million higher than 2015. The increase is due to higher margins driven by the elimination of export taxes, export controls and enhanced by the devaluation of the Argentine peso. Regarding our Land Transformation business we did not sell any farms during 2016, compared to a $24.0 million gain from the sale of three farms in 2015. On a quarterly basis, Adjusted EBIT for the Farming business was $5.1 million, $4.3 million lower than 4Q15. This reduction is mainly explained by extraordinary gains generated in 4Q15 from the mark-to-market of grain inventories and commodity derivatives amounting to $6.1 million. This reduction is mainly explained by positive gains in 4Q15 from the mark-to-market effect of inventories and commodity derivatives (see 9). (1) Please see “Reconciliation of Non-IFRS measures” starting on page 30 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/Loss. Adjusted EBITDA is defined as consolidated profit from operations before financing and taxation, depreciation, amortization plus the gains or losses from disposals of non-controlling interests in subsidiaries. Adjusted EBIT is defined as consolidated profit from operations before financing and taxation plus the gains or losses from disposals of non-controlling interests in subsidiaries. Adjusted EBITDA margin and Adjusted EBIT margin are calculated as a percentage of net sales. 8

Crops Crops - Highlights metric 4Q16 4Q15 Chg % 2016 2015 Chg % Gross Sales $ thousands 32,476 39,467 (17.7%) 142,124 154,741 (8.2%) thousand tons 391.2 208.6 87.5% 688.2 499.2 37.9% $ per ton 83.0 189.2 (56.1%) 206.5 310.0 (33.4%) Adjusted EBITDA $ thousands 4,558 9,905 (54.0%) 27,462 33,211 (17.3%) Adjusted EBIT $ thousands 4,218 8,906 (52.6%) 26,093 30,784 (15.2%) Planted Area(1) hectares 148,899 152,778 (2.5%) 148,899 152,778 (2.5%) (1) Does not include second crop planted area. Agricultural activities during the fourth quarter of 2016 consist mainly of the harvest of winter crops and the planting of summer crops. Profit during the quarter is derived from the harvest of winter crops (wheat & barley), the fair value recognition of summer crops with significant growth as of December 31, the mark-to-market effect of grain inventories and the mark-to-market effect of commodity hedges. Adjusted EBIT for our Crops segment during 4Q16 was $4.2 million compared to $8.9 million in 4Q15. Financial performance in 4Q15 was mainly a result of increasing grain prices in Argentina following the presidential elections, as the market speculated on lower export taxes and controls for the agricultural sector from the new administration. The increase in local prices generated a $4.8 million gain in 4Q15 from the mark-to-market effect of grain inventories, compared to $0.4 million in 4Q16. No gain or loss from commodity hedges was generated in 4Q16, while in 4Q15 we recorded a $2.4 million as soybean and corn prices weakened. On a full year basis, Adjusted EBIT was $26.1 million in 2016, compared to $30.8 million in 2015. Nonetheless, crop margins were significantly better in 2016: Gross Margin before Operating Expenses reached $43.4 million in 2016 compared to $26.7 million in 2015. This operating improvement is due to higher local prices resulting from lower export taxes and controls, and lower costs driven by the devaluation of the Argentine peso. Operating performance was offset by losses from the mark-to-market effect of our commodity hedges. In 2016, as a result of the rebound in international soybean and corn prices, our derivatives hedge position generated an $8.8 million loss, compared to a $16.4 million gain booked in 2015. In the table below, we provide a profitability analysis per crop season. Line items such as “Changes in Fair Value” and gains/losses from commodity hedges for the 2016, 2015 and 2014 fiscal years have been allocated amongst the 2015/16 and 2014/15 crop years. Adjusted EBIT per Crop Year 2015/2016 Crop million $ 2014/2015 Crop million $ Chg% Changes in FV booked in 2015 2.5 Changes in FV booked in 2014 (2.8) n.a Changes in FV booked in 2016 42.8 Changes in FV booked in 2015 9.1 372.6% Net Realizable Value in 2016 (5.8) Net Realizable Value in 2015 14.7 (139.8%) Selling, General & Admin Expenses in 2016 (8.5) Selling, General & Admin Expenses in 2015 (9.7) (12.4%) Hedge Results booked in 2014 (0.9) Hedge Results booked in 2013 0.2 n.a Hedge Results booked in 2015 6.7 Hedge Results booked in 2014 8.0 (17.0%) Hedge Results booked in 2016 (4.2) Hedge Results booked in 2015 7.6 n.a Adjusted EBIT 32.5 Adjusted EBIT 27.1 19.9% 9 

Adjusted EBIT during the 2015/16 season reached $32.5 million, 19.9% higher than the 2014/15 harvest season. This analysis reflects the positive impact of the elimination of export taxes, export restrictions and Argentine peso devaluation on margins, which were partially offset by lower international commodity prices. Crop sales in 2016 reached $142.1 million, 8.2% lower than in 2015. The decrease is explained by lower commodity prices, despite a 1.8% growth in volume. Crop sales during 4Q16 reached $32.5 million, 17.7% lower than 4Q15, primarily on account of lower wheat and soybean selling prices. Crops - Gross Sales Breakdown Amount ($ '000) Volume (tons) $ per unit Crop 4Q16 4Q15 Chg % 4Q16 4Q15 Chg % 4Q16 4Q15 Chg % Soybean 7,689 12,340 (37.7%) 30,860 49,369 (37.5%) 249 250 (0.3%) Corn (1) 12,893 13,286 (3.0%) 79,653 93,247 (14.6%) 162 142 13.6% Wheat (2) 10,558 6,294 67.7% 79,465 38,675 105.5% 133 163 (18.4%) Sunflower 911 1,869 (51.2%) 1,495 4,926 (69.7%) 609 379 60.6% Cotton 159 2,056 (92.3%) 238 2,724 (91.3%) 669 755 (11.4%) Others 266 3,622 (92.7%) - - n.a Total 32,476 39,467 (17.7%) 191,711 188,942 1.5% Amount ($ '000) Volume (tons) $ per unit Crop 2016 2015 Chg % 2016 2015 Chg % 2016 2015 Chg % Soybean 63,797 75,361 (15.3%) 243,755 283,805 (14.1%) 262 266 (1.4%) Corn (1) 48,502 41,924 15.7% 294,696 281,271 4.8% 165 149 10.4% Wheat (2) 18,191 16,750 8.6% 129,561 96,528 34.2% 140 174 (19.1%) Sunflower 7,275 7,938 (8.3%) 18,793 21,560 (12.8%) 387 368 5.1% Cotton 1,434 3,317 (56.8%) 1,434 4,974 (71.2%) 1,000 667 50.0% Others 2,925 9,451 (69.1%) - - n.a n.a n.a - Total 142,124 154,741 (8.2%) 688,239 688,137 0.0% (1) Includes sorghum (2) Includes barley Note: Prices per unit are a result of the averaging of different local market prices such as FAS Rosario (Arg), FOB Nueva Palmira (Uru) and FOT Luis Eduardo Magalhaes (BR) The table below shows the gains or losses from crop production generated in 2016. Our crop operations related to the 2015/16 season, which was harvested between January and June, generated Changes in Fair Value of $42.8 million. As of December 31, 2016, 18,382 hectares pertaining to the 2016/17 harvest (mainly corn, soybean and sunflower) had attained significant biological growth, generating initial recognition and Changes in Fair Value of biological assets of $0.7 million. In addition, 38,445 hectares of 2016/17 winter crops (wheat, barley and sunflower) had been harvested, generating Changes in Fair Value of $5.3 million. As a result, total Changes in Fair Value of Biological Assets and Agricultural Produce during 2016 reached $48.8 million, compared to $11.6 million generated in 2015. The increase is mainly attributable to higher commodity prices in Argentina and lower production costs due to the depreciation of the argentine peso. 10 

Crops - Changes in Fair Value Breakdown Soy 2nd Corn 2nd 2016 metric Soy Crop Corn Crop Wheat Sunflower Cotton Total 2015/16 Harvest Year Total Harvested Area Hectares 59,526 30,275 39,867 3,992 31,543 9,548 - 174,751 Area harvested in previous periods Hectares 59,526 30,275 39,776 3,992 31,543 9,548 - 174,660 Area harvested in current period Hectares - - - - - - - - Planted area with significant biological growth Hectares - - - - - - - - Changes in Fair Value 12M16 from harvested area 2015/16 (i) $ thousands 17,252 8,774 14,109 1,413 (11) 1,275 - 42,813 2016/17 Harvest Year Total Planted Area Hectares 54,693 24,890 41,420 2,268 39,100 5,454 2,640 170,465 Area planted in initial growth stages Hectares 51,557 24,890 30,112 2,268 - 2,171 - 110,998 Area planted with significant biological growth Hectares 3,136 - 11,308 - 1,499 2,439 - 18,382 Area harvested in current period Hectares - - - - 37,601 844 - 38,445 Changes in Fair Value 12M16 from planted area 2016/16 (i) $ thousands 228 318 25 113 - 684 Changes in Fair Value 12M16 from harvested area 2016/17 (ii) $ thousands - - - - 5,211 82 - 5,293 Total Changes in Fair Value in 12M16 (i+ii) $ thousands 17,480 8,774 14,427 1,413 5,226 1,470 - 48,790 Rice Rice - Highlights metric 4Q16 4Q15 Chg % 2016 2015 Chg % Gross Sales $ thousands 15,673 18,642 (15.9%) 96,562 84,668 14.0% $ thousands 12,190 15,496 (21.3%) 84,968 74,133 14.6% Gross Sales of White Rice thousand tons (1) 40.0 47.0 (14.9%) 295.8 201.4 46.9% $ per ton 305 330 (7.6%) 287 368 (22.0%) Gross Sales of By-products $ thousands 3,602 3,133 15.0% 11,713 10,523 11.3% Adjusted EBITDA $ thousands (119) 163 (173%) 11,698 6,274 86.5% Adjusted EBIT $ thousands (1,005) (539) n.a 8,932 3,287 171.7% Area under production (2) hectares 39,728 37,565 5.8% 39,728 37,565 5.8% Rice Mills Total Rice Produced thousand tons (1) 45.8 36.4 25.9% 223.2 170.5 30.9% Ending stock thousand tons (1) 24.7 35.7 (30.6%) 24.7 35.7 (30.6%) (1) Of rough rice equivalent. (2) Areas under production correspond to the 2015/16 and 2016/17 harvest years Adjusted EBIT corresponding to Adecoagro’s 2016 rice segment is primarily explained by the harvest of the 2015/16 crop season during 1Q16 and 2Q16, and the biological growth of the 2016/17 season at year-end. The rice crop is planted during the end of the third quarter, grows mainly throughout the fourth quarter, and is mostly harvested during the first quarter of the following year. Harvested rough rice is processed throughout the year and transformed into white rice, which is sold in the local and export markets year round. The majority of the segment’s margins are generated in the first quarter as the crop is harvested, while only a small portion of the margin is generated as the rice is processed and sold during the fourth quarter. 11 

Rice sales during 2016 reached $96.7 million, 14.2% higher than the previous year, mainly driven by higher selling volumes and partially offset by lower selling prices. White rice sales volumes increased by 46.9% while average realized prices fell by 22.0% driven by global supply and demand. Adjusted EBIT for 2016 totaled $8.9 million, 171.7% higher than 2015 as a result of: (i) higher white rice sales volumes as explained above; (ii) lower production costs measured in US dollars resulting from the depreciation of the Argentine peso in real terms; and (iii) a 15.2% increase in rice yields in the 2015/16 crop compared to the 2014/15 crop. The table below provides a breakdown of the margin recognized throughout the biological growth and the harvest of our rice for the previous harvest (2015/16) and the current harvest (2016/17). Rice - Changes in Fair Value Breakdown 12M16 metric Rice 2015/16 Harvest Year Total Harvested Area Hectares 37,580 Area harvested in previous periods Hectares 37,580 Area harvested in current period Hectares - Planted area with significant biological growth Hectares - Changes in Fair Value 12M16 from harvested area 2015/16 (i) $ thousands 10,047 2016/17 Harvest Year Total Planted Area Hectares 39,728 Area planted in initial growth stages Hectares 2,265 Area planted with significant biological growth Hectares 37,463 Changes in Fair Value 12M16 from planted area 2016/17 (ii) $ thousands 451 Total Changes in Fair Value in 9M16 (i+ii) $ thousands 10,498 Regarding the 2016/17 rice crop, during 3Q16 and 4Q16, 39,728 hectares were planted, 5.7% higher than the previous crop primarily as a result of our land transformation activities. In 2016, the rice segment generated Changes in Fair Value of Biological Assets and Agricultural Produce of $10.5 million, compared to $2.8 million in 2015. 12 

Dairy Dairy - Highlights metric 4Q16 4Q15 Chg % 2016 2015 Chg % Gross Sales $ thousands (1) 11,484 7,591 51.3% 32,897 32,980 (0.3%) million liters (2) 31.9 24.7 29.3% 104.4 89.7 16.4% $ per liter (3) 0.33 0.27 22.5% 0.28 0.33 (13.0%) Adjusted EBITDA $ thousands 1,920 1,335 43.8% 5,717 6,356 (10.1%) Adjusted EBIT $ thousands 1,679 993 69.1% 4,753 4,900 (3.0%) Milking Cows Average Heads 6,967 6,752 3.2% 6,880 6,658 3.3% Cow Productivity Liter/Cow/Day 38.6 38.6 (0.2%) 36.7 36.3 1.0% Total Milk Produced million liters 24.7 24.0 3.0% 92.4 88.6 4.3% (1) Includes (i) $0.8 million from sales of culled cows in 4Q16 and $0.9 million in 4Q15, (ii) $0.05 million from sales of whey 4Q16; and (iii) $3.2 million from sales of powder milk in 4Q16 (2) Selling volumes include (i) 8.1 million liters of powder milk in 4Q16 (3) Sales price includes the sale of fluid milk and whole milk powder and excludes cattle and whey sales From an operational standpoint, 2016 was a very good year for our dairy business. Operational performance continues to improve and has exceeded our targets. Cow productivity increased by 1.0% year-over-year, reaching a record of 36.7 liters/cow/day. This is a strong indication that cow comfort and health are well managed and that our operational teams are focused on maximizing efficiency. Improved cow management has also allowed us to increase operating capacity of the dairy to over 6,800 cows, 3.3% above last year and 5% above our initial expectations. As a result of these two factors, milk production reached a total of 92.4 million liters in 2016 and 24.7 million during 4Q16, 4.3% and 3.0% respectively higher year-over-year and quarter-over-quarter. Despite strong operational performance, Adjusted EBIT in 2016 reached $4.8 million, 3.0% lower than the same period of 2015. This decrease was primarily explained by a 13.0% decrease in milk prices, measured in USD, resulting from a combination of weak international prices and the devaluation of the Argentine peso. The multi-year downward trend in milk prices was reverted during 4Q16, driven by global supply and demand dynamics and coupled by abundant rainfalls in Argentina which resulted in supply shortages. The rebound in prices has positively affected our financial performance, resulting in a 22.5% increase in selling prices and a 69.1% increase in Adjusted EBIT year-over-year. We expect these attractive price fundamentals to continue throughout 2017. 13 

All Other Segments All Other Segments - Highlights metric 4Q16 4Q15 Chg % 2016 2015 Chg % Gross Sales $ thousands 183 314 (41.7%) 960 1,302 (26.3%) Adjusted EBITDA $ thousands 270 107 152.3% 9,085 677 1,241.9% Adjusted EBIT $ thousands 234 47 397.9% 8,893 401 2,117.7% All Other Segments is primarily composed of our Cattle segment, among others. Our Cattle segment consists of over 60 thousand hectares of pasture land that is not suitable for crop production and is leased to third parties for cattle grazing activities. As of 2016, 27 thousand hectares are currently under lease agreements. Adjusted EBIT for All Other Segments increased by $0.2 million in 4Q16, compared to the same period last year. Regarding full year 2016, adjusted EBIT reached $8.9 million. As previously explained in our 3Q16 Earnings Release, $8.1 million corresponds to the settlement of an arbitration dispute with Marfrig Argentina SA, subsidiary of Marfrig Alimentos SA. The settlement compensates Adecoagro for unpaid invoices and provides indemnification for early termination of lease agreements for cattle grazing activities entered in December 2009, in which Marfrig Argentina SA acted as the lessee and Adecoagro’s subsidiaries as lessors. Land Transformation business Land transformation - Highlights metric 4Q16 4Q15 Chg % 2016 2015 Chg % Adjusted EBITDA $ thousands - 23,980 - % - 23,980 - % Adjusted EBIT $ thousands - 7,914 - % - 7,914 - % Land sold Hectares - 18,718 - % - 18,718 - % There were no farm sales in 4Q16. Land transformation is an ongoing process in our farms, which consists of transforming undervalued and undermanaged land into its highest production capabilities. Adecoagro is currently engaged in the transformation of several farms in the northeastern region of Argentina, where farms formerly used for cattle grazing are being successfully transformed into high yielding crop and rice farms. The company is continuously seeking to recycle its capital by disposing of a portion of its developed farms. This allows the company to monetize the capital gains generated by its transformed farms and re-allocate its capital to other farms or assets with higher risk-adjusted returns, thereby enhancing return on invested capital. 14 

Sugar, Ethanol & Energy Business Operational Performance Sugar, Ethanol & Energy - Selected Information metric 4Q16 4Q15 Chg % 2016 2015 Chg % Milling Sugarcane Milled tons 3,117,916 1,794,057 73.8% 11,114,509 8,335,447 33.3% Own Cane tons 2,813,302 1,700,948 65.4% 10,164,671 7,396,926 37.4% Third Party Cane tons 304,614 93,109 227.2% 949,837 938,521 1.2% Production Sugar tons 212,925 81,499 161.3% 701,060 464,929 50.8% Ethanol M3 121,199 84,908 42.7% 422,395 361,001 17.0% Hydrous Ethanol M3 70,675 47,890 47.6% 252,908 206,508 22.5% Anhydrous Ethanol M3 50,524 37,018 36.5% 169,487 154,493 9.7% TRS Equivalent Produced tons 429,405 230,211 86.5% 1,453,184 1,102,357 31.8% Sugar mix in production 52% 37% 40.1% 50% 44% 14.4% Ethanol mix in production 48% 63% (23.5%) 50% 56% (11.3%) Energy Exported (sold to grid) MWh 257,993 116,552 121.4% 751,037 553,090 35.8% Cogen efficiency (KWh sold per ton crushed) KWh/ton 82.7 65.0 27.4% 67.6 66.4 1.8% Agricultural Metrics Harvested own sugarcane tons 2,813,302 1,700,948 65.4% 10,164,671 7,396,926 37.4% Harvested area Hectares 30,907 17,995 71.8% 103,559 79,519 30.2% Yield tons/hectare 90.9 94.5 (3.8%) 98.2 93.0 5.5% TRS content kg/ton 134.4 126.9 5.9% 127.3 132.0 (3.5%) TRS per hectare kg/hectare 12,220 11,998 1.8% 12,500 12,276 1.8% Mechanized harvest % 98% 98% 0.4% 98.4% 97.7% 0.6% Area Sugarcane Plantation hectares 134,591 129,299 4.1% 134,591 129,299 4.1% Expansion & Renewal Area hectares 5,475 2,642 107.2% 20,255 12,865 57.4% We milled a total of 3.1 million tons of sugarcane in 4Q16, 73.8% higher than 4Q15. Dry weather during November and December resulted in 64 effective milling days, 45% higher than in 4Q15. Our production mix was slanted towards sugar production during 4Q16 to profit from higher sugar prices as compared to ethanol prices (22.6% higher on average). As a result, sugar production increased by 161.3% year-over-year to 212.9 thousand tons, while ethanol production increased by 42.7% to 121.2 thousand cubic meters in the same period. Overall, production measured in TRS equivalent increased 86.5% year-over-year. On a full year basis, sugarcane crushing reached 11.1 million tons, 33.3% higher than the previous year. This growth was mainly driven by the ramp up of our cluster in Mato Grosso do Sul, coupled by the implementation of the “continuous” or “non-stop” harvest production model(1). Consequently, sugar, ethanol and energy production increased by 50.8%, 17.0%, and 35.8% compared to the previous year, respectively, while total production measured in TRS equivalent increased by 31.8%. Considering that over 85% of production costs are fixed, it’s worth highlighting that this was the first time we operate at full nominal capacity. (1) With this model, we harvest and crush sugarcane year round, without stopping during the traditional off-season. For more information, please refer to 1Q16 earnings release, page 3 15 

In terms of agricultural productivity, sugarcane yields in 4Q16 reached 90.9 tons/ha, 3.8% lower than 4Q15, while TRS content per ton of sugarcane was 134.4 kg/ton, 5.9% higher year-over-year. The combination of these two effects resulted in TRS production per hectare of 12.2 tons/ha, 1.8% above the previous year. Enhanced agricultural performance is explained by our focus on improving our agricultural operations. Some examples include: (i) effective implementation of pest control, (ii) utilization of best cane varieties for the region, (iii) harvesting the cane at its optimum growth cycle; and (iv) timely renewal of the sugarcane plantation. Sugarcane productivity was also positively affected by favorable weather conditions during the growth season. As of December 31, 2016, our sugarcane plantation consisted of 134,591 hectares, representing a 4.1% growth year-over-year. Sugarcane planting continues to be a key strategy to supply our mills with sufficient quality raw material to operate at full capacity. During 4Q16 we planted a total of 5,475 hectares of sugarcane. Of this total area, 1,436 hectares correspond to expansion areas planted to supply the additional sugarcane needed in 2017 to operate at full capacity under the “continuous harvest” model; and 4,039 hectares correspond to areas planted to renew old plantations with younger high-yielding sugarcane, thus allowing us to maintain the productivity of our plantation. Financial Performance Sugar, Ethanol & Energy - Highlights $ thousands 4Q16 4Q15 Chg % 2016 2015 Chg % Net Sales (1) 259,481 143,747 80.5% 568,820 374,977 51.7% Gross Profit Manufacturing Activities 80,144 39,405 103.4% 176,199 99,831 76.5% Adjusted EBITDA 112,067 50,355 122.6% 265,044 167,180 58.5% Adjusted EBITDA Margin 43.2% 35.0% 23.3% 46.6% 44.6% 4.5% Adjuted EBITDA Margin (net of third party commercialization) 48.4% 39.5% 22.7% 54.7% 50.0% 9.5% (1) Net Sales are calculated as Gross Sales net of sales taxes. The Sugar, Ethanol and Energy business delivered strong operational and financial performance during 4Q16. As shown in the table above, net sales reached $259.5 million, 80.5% higher than 4Q15 while gross profit from manufacturing activities increased by 103.4% from $39.4 million in 4Q15 to $80.1 million in 4Q16. Adjusted EBITDA reached $112.1 million in 4Q16, 122.6% or $61.7 million higher year-over-year. Adjusted EBITDA margin was 43.2% and increases to 48.4% when excluding third party commercialization(1). The main factors contributing to the solid financial performance were: (i) a 73.8% increase in sugarcane crushing, which resulted in a 161.3% and a 42.7% growth in sugar and ethanol production; and a 39.4% and 1.3% increase in sugar and ethanol sales volumes, respectively; (ii) a 51.0% and 36.4% increase in sugar and ethanol average realized selling prices, respectively; (iii) a 13.1% decrease in unitary production costs; and (iv) a $16.2 million gain from the mark-to-market effect of our sugar hedge position compared to a $9.7 million loss in 4Q15. Results were partially offset by a $24.8 million loss in changes in fair value of unharvested sugarcane (to be harvested in the next 12 months), as a result of slightly lower sugar futures prices and lower estimated productivity. On a cumulative basis, Adjusted EBITDA in 2016 grew 58.5% to $265.0 million. Adjusted EBITDA margin grew from 44.6% to 46.6% while Adjusted EBITDA margin excluding third party commercialization(2) grew from 50.0% (2) Please refer to footnote 3 on page 1 for a definition of Adjusted EBITDA margin excluding third party commercialization. 16 

to 54.7%. This growth is primarily explained by (i) a 33.3% increase in sugarcane crushing as a result of the “continuous harvest” model, which coupled with a higher sugar mix has resulted in a 50.8% growth in sugar production and a 43.6% increase in sugar sales volumes; (ii) higher sugar and ethanol average realized prices, 29.6% and 25.5% respectively; (iii) enhanced agricultural productivity complemented by the devaluation of the BRL, which resulted in a 4.6% dilution of production costs per ton of sugarcane crushed, year-over-year. Results were partially offset by (iv) a $7.9 million reduction in gains from changes in fair value of our unharvested sugarcane (to be harvested in the next 12 months), mainly as a result of slightly lower sugar futures prices and lower estimated sugarcane yields as a result of the stabilization of our plantation; and (vi) a $6.7 million loss from the mark-to-market effect of our sugar hedge position, compared to a $7.3 million gain in 2015. The table below reflects the breakdown of net sales for the Sugar, Ethanol & Energy business. Sugar, Ethanol & Energy - Net Sales Breakdown (1) $ thousands Units ($/unit) 4Q16 4Q15 Chg % 4Q16 4Q15 Chg % 4Q16 4Q15 Chg % Sugar (tons)(2) 144,234 68,534 110.5% 341,315 244,820 39.4% 423 280 51.0% Ethanol (cubic meters) 93,972 68,009 38.2% 176,902 174,610 1.3% 531 389 36.4% Energy (Mwh)(3) 21,275 7,204 195.3% 488,403 123,451 295.6% 44 58 (25.4%) TOTAL 259,481 143,747 80.5% $ thousands Units ($/unit) 2016 2015 Chg % 2016 2015 Chg % 2016 2015 Chg % Sugar (tons)(2) 330,520 177,517 86.2% 859,331 598,314 43.6% 385 297 29.6% Ethanol (cubic meters) 191,190 156,430 22.2% 395,922 406,444 (2.6%) 483 385 25.5% Energy (Mwh)(3) 47,110 41,030 14.8% 1,028,323 607,532 69.3% 46 68 (32.2%) TOTAL 568,820 374,977 51.7% (1) Net Sales are calculated as Gross Sales net of ICMS, PIS, CONFINS, INSS and IPI taxes. (2) Includes commercialization of third party sugar: 55.1k tons ($25.7m) in 4Q16; 195.5k tons ($81.8m) in 2016; 53.5k tons ($16.4m) in 4Q15; 117.6k tons ($39.6m) in 2015. (3) Includes commercialization of energy from third parties. Net sales during 4Q16 reached $259.5 million, 80.5% higher than 4Q15. The growth in sales was driven by higher sugar and energy volumes and higher sugar and ethanol prices. Sugar sales volumes grew by 39.4% year-over-year, mainly as a result of an 73.8% increase in the volume of sugarcane crushed coupled with a 5.9% increase in TRS per ton and a higher sugar mix, resulting in a 161.3% increase in sugar production. In addition, we commercialized 55.1 thousand tons of sugar from third parties. Although these transactions have significantly lower margins than our production operation, they increase our profit in absolute terms and provide enhanced flexibility and synergies for our commercial strategy. Our average realized selling price was $423 per ton, which was 51.0% higher than 4Q15, resulting in an 110.5% increase in net sales. Ethanol sales in 4Q16 were 38.2% higher year-over-year, mainly as a result of a 36.4% increase in average selling prices coupled with a slight increase of 1.3% in selling volumes despite of the fact that ethanol mix was reduced from 63% to 48% in 4Q16. As of December 31, 2016, our ethanol inventory was 69.3 thousand cubic meters, 54.6% higher than a year ago, which will allow us to continue capturing the attractive inter-harvest prices in January 2017. 17

In the case of energy, export volumes to the grid increased by 295.6% driven by the growth in sugarcane crushing and boosted by the commercialization of 230 thousand MWh of energy from third party mills. The increase in volumes allowed us to offset weaker energy prices. Overall, energy sales in 4Q16 reached $21.3 million, 195.3% higher year-over-year. On a year-to-date basis, net sales of sugar, ethanol and energy reached $568.8 million, 51.7% higher than the previous year. The growth in sales has been driven by higher sugar and energy sales volumes and strong sugar and ethanol prices. Sugar, Ethanol & Energy - Total Production Costs $ thousands 4Q16 4Q15 Chg % 2016 2015 Chg % Industrial costs 13,925 11,775 18.3% 56,118 41,289 35.9% Agricultrual costs 89,044 56,372 58.0% 260,286 207,344 25.5% Harvest costs 52,492 41,695 25.9% 152,713 124,243 22.9% Cane from 3rd parties 9,765 2,757 254.3% 26,555 24,182 9.8% Leasing costs 10,046 6,386 57.3% 38,380 29,914 28.3% Maintenance costs 16,741 5,534 202.5% 42,638 29,005 47.0% Total Production Costs 102,969 68,147 51.1% 316,404 248,632 27.3% Total producton costs per ton of sugarcane crushed (USD/Ton) 33 38 (13.1%) 28 30 (4.6%) As shown in the table above, production costs per ton of sugarcane crushed during 4Q16 decreased by 13.1% compared to 4Q15, as a result of an 73.8% increase in sugarcane crushing, coupled with operational enhancements and cost efficiencies. It is important to highlight that more than 85% of our production costs are fixed, and as a result, every marginal ton that we are able to crush has a significant impact on cost dilution and margin expansion. On a full year basis, unitary costs remain 4.6% lower compared to previous year. Sugar, Ethanol & Energy - Changes in Fair Value $ thousands 4Q16 4Q15 Chg % 2016 2015 Chg % Changes in FV Harvested Sugarcane (Agricultural Produce) 29,630 11,936 148.2% 60,386 24,485 146.6% Changes in FV Unharvested Sugarcane = [(a+b)-(c +d-e)] (21,115) 3,714 (668.5%) 319 8,298 (96.2%) Sugarcane Valuation Model current period (a) 82,380 59,077 39.4% 82,380 59,077 39.4% Capitalized crop maintenance costs LTM as of current period (b) (45,998) (49,892) (7.8%) (45,998) (49,892) (7.8%) Sugarcane Valuation Model previous period (c ) 106,259 48,520 119.0% 59,077 60,667 (2.6%) Capitalized crop maintenance costs LTM as of previous period(d) (47,524) (45,812) 3.7% (35,781) (41,351) (13.5%) Exchange rate difference (e) 1,238 (2,763) (144.8%) (12,767) 18,429 n.a Total Changes in Fair Value 8,515 15,651 (45.6%) 60,706 32,784 85.2% Total Changes in Fair Value of Biological Assets during 4Q16 reached $8.5 million and $60.7 million in 2016. In both periods, changes in fair value for harvested sugar has increased year-over-year, as a result of high productivity and attractive prices, while changes in fair value for the unharvested sugarcane (what is currently growing on the fields and will be harvested during the next 12 months) has decreased and is lower year-over-year. This reduction is the result of lower sugar futures prices and lower sugarcane yields estimated for the next season compared to our estimates as of 3Q16. 18 

Corporate Expenses Corporate Expenses $ thousands 4Q16 4Q15 Chg % 2016 2015 Chg % Corporate Expenses (4,844) (5,820) (16.8%) (20,957) (21,776) (3.8%) Adecoagro’s corporate expenses include items that have not been allocated to a specific business segment, such as directors, executive officers and headquarters staff, and certain professional fees, travel expenses, and office lease expenses, among others. As shown on the table above, corporate expenses during 2016 reached $21.0 million, marking a 3.8% decrease compared to the previous year. The reduction is primarily explained by the year-over-year depreciation of the Brazilian Real and the Argentine Peso. Other Operating Income Other Operating Income $ thousands 4Q16 4Q15 Chg % 2016 2015 Chg % Gain / (Loss) from commodity derivative financial instruments 15,694 (8,090) n.a (16,007) 22,148 n.a Gain/(Loss) from forward contracts (29) (27) 7.4% (44) (25) - % Gain from disposal of farmland and other assets 0 7,914 (100.0%) 7,914 - % Gain from disposal of other property items (1,334) (188) 609.6% (1,255) 721 n.a Gain/(Loss) from disposal of biological assets (39) - - % (39) - - % Other 364 190 91.8% 9,048 308 2,837.8% Total 14,656 (201) n.a (8,297) 31,066 n.a Other Operating Income in 4Q16 was a gain of $14.7 million, marking a $14.9 million increase compared to 4Q15. This is primarily explained by a $15.7 million gain from our commodity hedge position as a result of the rebound in sugar prices between September 30 and December 31, 2016. On a full year basis, we recorded an $8.3 million loss in Other Operating Income, marking $39.4 million decrease compared to 2015. This is mainly explained by: (i) a $9.4 million loss related to our soybean and corn hedge position, marking a $24.2 million decrease compared to the previous year; (ii) a $6.7 million loss related to our sugar hedge position, marking a $14.0 million decrease compared to the previous year. This was partially offset by a $9.0 million gain in “Other”, mostly related to the successful settlement of an arbitration dispute with Marfrig SA. 19 

Financial Results Financial Results $ thousands 4Q16 4Q15 Chg % 2016 2015 Chg % Interest Expenses, net (11,821) (11,149) 6.0% (40,527) (41,290) (1.8%) Cash Flow Hedge - Transfer from Equity (33,028) (17,862) 84.9% (85,214) (32,700) 160.6% FX Gain/(Loss), net (3,878) (20,313) (80.9%) (19,062) (23,423) (18.6%) Gain/(Loss) from derivative financial Instruments 1,145 (149) n.a (5,694) (4,437) 28.3% Taxes (806) (1,046) (22.9%) (2,719) (3,358) (19.0%) Other Expenses, net (1,917) (139) 1,279.1% (4,207) (2,532) 66.2% Total Financial Results (50,305) (50,658) (0.7%) (157,423) (107,740) 46.1% Net Financial Results in 2016 totaled a loss of $157.4 million, compared to a loss of $107.7 million in 2015, mainly as a result of non-cash adjustments. The most relevant changes year-over-year are: Net interest expense decreased by $0.8 million in 2016 mainly driven the depreciation of the Brazilian Real and Argentine Peso and a lower average debt across the year. Foreign currency losses (reflected in “Cash Flow Hedge(1)” and “Fx Gain/Loss” line items) totaled $104.3 million in 2016 compared to $56.1 million in 2015. These are non-cash accounting adjustments. The increase in losses in 2016 is mostly attributed to (i) financial debt maturities increased 70% in 2016 compared to 2015 (cash flow hedge currency losses are reclassified from equity to the P/L as debt is amortized); (ii) the 22% depreciation of the Argentine peso during 2016, which was partially offset by a 14% appreciation of the BRL. (1) Ef f ective July 1, 2014, Adecoagro formally documented and designated cash flow hedging relationships to hedge the foreign exchange rate risk of a portion of its highly probable f uture sales in US dollars using a portion of its borrowings denominated in US dollars and foreign currency forward contracts. Cash flow hedge accounting permits that gains and losses arising f rom the effect of changes in foreign currency exchange rates on derivative and non-derivative hedging instruments not be immediately recognized in profit or loss, but be reclassif ied f rom equity to profit or loss in the same periods during which the future sales occur, thus allowing for a more appropriate presentation of the results for the period reflecting Adecoagro's Risk Management Policy .20 

Commodity Hedging Adecoagro’s performance is affected by the volatile price environment inherent to agricultural commodities. The company uses both forward contracts and derivative instruments to mitigate swings in prices by locking margins and stabilizing profits. The table below shows the average selling prices for Adecoagro’s physical sales (i.e., volumes and average prices including past sales invoiced/delivered and fixed-price forward contracts). Commodity Hedge Position - as of December 31, 2016 Consolidated Hedge Position Farming Avg. FAS Price CBOT FOB Volume (1) USD/Ton USD/Bu 2015/2016 Harvest season Soybeans 218,998 266.5 1,028.2 Corn 235,708 163.7 405.6 2016/2017 Harvest season Soybeans 110,224 220.0 878.9 Corn 114,845 173.2 441.7 Consolidated Hedge Position Sugar, Ethanol & Energy Avg. FOB Price ICE FOB Volume (1) USD/Unit Cents/Lb 2016/2017 Harvest season Sugar (tons) 663,600 345.0 15.6 Ethanol (m3) 358,758 483.5 n.a Energy (MW/h) (2) 744,294 57.3 n.a 2017/2018 Harvest season Sugar (tons) 232,918 409.6 18.6 Ethanol (m3) 6,900 577 n.a Energy (MW/h) (2) 676,652 52.9 n.a (1) Includes volumes delivered/invoiced, forward contracts and derivatives (futures and options). (2) Energy prices were converted to USD @ an Fx of R/USD 3.45 Recent Developments As of the end of February 2017, our sugar hedge position related to the 2017/18 harvest season increased to 348.6 thousand tons at an average price of 19.23 cents/lb. In the case of soybean, our 2016/2017 hedge position increased by 9.4 thousand tons at an average price of 274 USD/ton (1,080 cents per/bu FOB CBOT) to 119.6 thousand tons at an average price of 224 USD/ton (895 cents per/bu FOB CBOT) while corn hedge was increased to 13.6 thousand tons at an average price of 153 USD/ton (390 cents per/bu FOB CBOT) to 128.4 thousand tons at an average price of 171 USD/ton (438 cents per/bu FOB CBOT). 21

Indebtedness Net Debt Breakdown $ thousands 4Q16 3Q16 Chg % 4Q15 Chg % Farming 102,097 108,848 (6.2%) 85,843 18.9% Short term Debt 44,546 95,283 (53.2%) 70,078 (36.4%) Long term Debt 57,551 13,564 324.3% 15,765 265.1% Sugar, Ethanol & Energy 533,298 667,942 (20.2%) 637,495 (16.3%) Short term Debt 160,545 242,319 (33.7%) 169,608 (5.3%) Long term Debt 372,753 425,623 (12.4%) 467,887 (20.3%) Total Short term Debt 205,091 337,602 (39.3%) 239,686 (14.4%) Total Long term Debt 430,304 439,188 (2.0%) 483,652 (11.0%) Gross Debt 635,395 776,791 (18.2%) 723,338 (12.2%) Cash & Equivalents 158,568 136,482 16.2% 198,894 (20.3%) Net Debt(1) 476,827 640,309 (25.5%) 524,444 (9.1%) Net Debt / Adj. EBITDA(1) 1.60x 2.42x (34.0%) 2.43x (34.1%) Adecoagro’s net debt as of 2016 year-end was $476.8 million, marking a 25.5% and 9.1% reduction compared to September 30, 2016 and December 31, 2015, respectively. The reduction in net debt was mainly driven by the consolidation of our operations and the conclusion of our capex cycle, which has allowed us to generate positive free cash flow. Decreasing debt combined with the increase in Adjusted EBITDA has resulted in a net debt-to-Adjusted EBITDA ratio of 1.6x, significantly lower than the previous year. On a consolidated basis, gross debt stands at $635.4 million, 12.2% lower year-over-year and 18.2% lower quarter-over-quarter. As of December 31, 2016, 68% of total debt outstanding was structured as long term, mainly with multi-lateral banks such as IFC and BNDES. Cash and equivalents as of December 31, 2016, stood at $158.6 million, 16.2% higher quarter-over-quarter. 22 

Capital Expenditures & Investments Capital Expenditures & Investments $ thousands 4Q16 4Q15 Chg % 2016 2015 Chg % Farming & Land Transformation 5,479 4,880 12.3% 13,683 20,717 (34.0%) Maintenance 1,637 1,148 42.6% 4,291 2,519 70.3% Expansion 3,842 3,732 2.9% 9,392 18,197 (48.4%) SE&E 36,152 27,373 32.1% 119,533 129,035 (7.4%) Maintenance 22,451 5,258 327.0% 80,631 59,276 36.0% Planting 10,647 1,477 620.7% 45,741 16,131 183.6% Industrial & Agricultural Machinery 11,804 3,781 212.2% 34,889 43,145 (19.1%) Expansion 13,701 22,115 (38.0%) 38,902 69,759 (44.2%) Planting 12,576 8,284 51.8% 28,434 27,886 2.0% Industrial & Agricultural Machinery 1,125 13,831 (91.9%) 10,469 41,873 (75.0%) Total 41,631 32,253 29.1% 133,216 149,752 (11.0%) Adecoagro’s capital expenditures during 2016 totaled $133.2 million, 11.0% lower than 2015. The Sugar, Ethanol and Energy business accounted for 89.7% or $119.5 million of total capex. Expansion capex reached $38.9 million, and was mainly destined to expansion of our sugarcane plantation to supply cane to the increase in capacity related to the “continuous or non-stop” harvest implemented at the beginning of 2016. Maintenance capex increased by 36.0%, reaching $80.6 million. Maintenance capex consists mainly of renewal planting to maintain the productivity of our sugarcane plantation and maintenance of the mills and agricultural equipment (combine, tractors, trucks, etc). The increase in maintenance capex is related to a 39% increase in renewal planting area, to 12,163 hectares, explained by the growth and stabilization of our sugarcane plantation. Overall, total capex in the segment decreased by 7.4% as a result of the BRL depreciation, since most of our capex is expensed in local currency. Farming and Land transformation expenditures accounted for 10.3% or $13.7 million of total capex in 2016. The principal investment consisted in land transformation activities to improve rice productivity through zero-leveling of rice fields. In the dairy business, we have begun the construction of a bio-digester. We believe this will contribute to enhance our operations and develop a more sustainable production system. The bio-digester will also reduce our dependence on the electricity supply from the grid since we will be able to generate enough electricity to operate our business and sell excess power to the grid. 23 

Inventories End of Period Inventories Volume thousand $ Product Metric 4Q16 4Q15 % Chg 4Q16 4Q15 % Chg Soybean tons 15,642 19,863 (21.3%) 3,775 4,281 (11.8%) Corn (1) tons 13,422 16,858 (20.4%) 1,774 3,482 (49.1%) Wheat (2) tons 59,371 61,283 (3.1%) 7,281 7,112 2.4% Sunflower tons 165 2,548 (93.5%) 44 693 (93.7%) Cotton lint tons 7 1,382 (99.5%) 6 1,410 (99.6%) Rough Rice (3) tons 24,734 35,652 (30.6%) 4,837 6,905 (29.9%) Sugar tons 48,793 15,551 213.8% 15,131 10,774 40.4% Ethanol m3 69,291 44,812 54.6% 34,470 13,857 148.8% Total 231,424 197,950 16.9% 67,317 48,513 38.8% (1) Includes sorghum. (2) Includes barley. (3) Expressed in rough rice equivalent Variations in inventory levels between 2016 and 2015 are attributable to (i) changes in production volumes resulting from changes in planted area, the production mix between different crops and in yields obtained, (ii) a different percentage of area being harvested during the period, and (iii) changes in the commercial and selling strategy for each product. As of the end of February 2017, sugar and ethanol inventories have decreased significantly due to sales during January and February. 24 

Forward-looking Statements This press release contains forward-looking statements that are based on our current expectations, assumptions, estimates and projections about us and our industry. These forward-looking statements can be identified by words or phrases such as “anticipate,” “forecast”, “believe,” “continue,” “estimate,” “expect,” “intend,” “is/are likely to,” “may,” “plan,” “should,” “would,” or other similar expressions. The forward-looking statements included in this press release relate to, among others: (i) our business prospects and future results of operations; (ii) weather and other natural phenomena; (iii) developments in, or changes to, the laws, regulations and governmental policies governing our business, including limitations on ownership of farmland by foreign entities in certain jurisdictions in which we operate, environmental laws and regulations; (iv) the implementation of our business strategy, including our development of the Ivinhema mill and other current projects; (v) our plans relating to acquisitions, joint ventures, strategic alliances or divestitures; (vi) the implementation of our financing strategy and capital expenditure plan; (vii) the maintenance of our relationships with customers; (viii) the competitive nature of the industries in which we operate; (ix) the cost and availability of financing; (x) future demand for the commodities we produce; (xi) international prices for commodities; (xii) the condition of our land holdings; (xiii) the development of the logistics and infrastructure for transportation of our products in the countries where we operate; (xiv) the performance of the South American and world economies; and (xv) the relative value of the Brazilian Reais, the Argentine Peso, and the Uruguayan Peso compared to other currencies; as well as other risks included in the registrant’s other filings and submissions with the United States Securities and Exchange Commission. These forward-looking statements involve various risks and uncertainties. Although we believe that our expectations expressed in these forward-looking statements are reasonable, our expectations may turn out to be incorrect. Our actual results could be materially different from our expectations. In light of the risks and uncertainties described above, the estimates and forward-looking statements discussed in this press release might not occur, and our future results and our performance may differ materially from those expressed in these forward-looking statements due to, inclusive, but not limited to, the factors mentioned above. Because of these uncertainties, you should not make any investment decision based on these estimates and forward-looking statements. The forward-looking statements made in this press release related only to events or information as of the date on which the statements are made in this press release. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events. 25 

Reconciliation of Non-IFRS measures To supplement our consolidated financial statements, which are prepared and presented in accordance with IFRS, we use the following non-IFRS financial measures in this press release: Adjusted EBITDA Adjusted EBIT Adjusted EBITDA margin Free Cash Flow from Operations Free Cash Flow Net Debt Net Debt to Adjusted EBITDA In this section, we intend to provide an explanation and a reconciliation of each of our non-IFRS financial measures to their most directly comparable IFRS measures of each non-IFRS measure. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with IFRS. We use non-IFRS measures to internally evaluate and analyze financial results. We believe these non-IFRS financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present similar non-IFRS financial measures. There are limitations associated with the use of non-IFRS financial measures as an analytical tool. In particular, many of the adjustments to our IFRS financial measures reflect the exclusion of items, such as depreciation and amortization, changes in fair value and the related income tax effects of the aforementioned exclusions, that are recurring and will be reflected in our financial results for the foreseeable future. In addition, these measures may be different from non-IFRS financial measures used by other companies, limiting their usefulness for comparison purposes. Adjusted EBITDA, Adjusted EBIT & Adjusted EBITDA margin We define Adjusted 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 adjusted by profit or loss from discontinued operations and by gains or losses from disposals of non-controlling interests in subsidiaries whose main underlying asset is farmland which are reflected in our Shareholders Equity under the line item “Reserve from the sale of minority interests in subsidiaries”. We define Adjusted 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, adjusted by profit from discontinued operations and by gains or losses from disposals of non-controlling interests in subsidiaries whose main underlying asset is farmland which are reflected in our Shareholders Equity under “Reserve from the sale of minority interests in subsidiaries”. We believe that Adjusted EBITDA and Adjusted 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 26 

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), foreign exchange gains or losses and other financial expenses. In addition, by including the gains or losses from disposals of non-controlling interests in subsidiaries whose main underlying asset is farmland, investors can evaluate the full value and returns generated by our land transformation activities. Other companies may calculate Adjusted EBITDA and Adjusted EBIT differently, and therefore Adjusted EBITDA and Adjusted EBIT may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA and Adjusted EBIT are not a 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, profit from operations before financing and taxation and other measures determined in accordance with IFRS. We define Adjusted EBITDA margin as Adjusted EBITDA to net sales. We consider that the presentation of adjusted EBITDA margin provides useful information on how successfully we operate our Company and enhances the ability of investors to compare profitability between segments, periods and with other public companies. Reconciliation of both Adjusted EBITDA and Adusted EBIT starts on page 33. Free Cash Flow and Free Cash Flow from Operations We define Free Cash Flow as (i) net cash generated from operating activities, plus (ii) net cash used in investing activities, plus (iii) interest paid, plus (iv) proceeds from the sale of minority interest in subsidiaries. We define Free Cash Flow from Operations as (i) net cash generated from operating activities plus (ii) net cash in investing activities, plus (iii) interest paid, plus (iv) proceeds from the sale of minority interest in subsidiaries; plus (v) expansion capex. Expansion capex is defined as the required investment to expand current production capacity. We define maintenance capex as the necessary investments in order to maintain the current level of productivity both at an agricultural and at an industrial level. We believe Free Cash Flow from Operations is an important performance and liquidity metric for the Company because it allows investors and others to evaluate and compare the amount of cash generated by the Company to undertake growth investments, to fund acquisitions, to deleverage, and to return to shareholders in the form of dividends and/or share repurchases, among others. We believe Free Cash Flow from Operations is an important liquidity metric for the Company because it allows investors and others to evaluate and compare the amount of cash generated by the Company to fund acquisitions, to distribute to shareholders both in dividends and/or share buyback, to deleverage; among many other things. Other companies may calculate Free Cash Flow and Free Cash Flow from Operations differently, and therefore may not be comparable to similarly titled measures used by other companies. Free Cash Flow and Free Cash Flow from Operations are not measures of liquidity under IFRS, and should not be considered in isolation or as an alternative to consolidated net profit (loss), cash flows from operating activities, profit from operations before financing and taxation and other measures determined in accordance with IFRS 27 

Reconciliation - Free Cash Flow $ thousands 2016 2015 Free Cash Flow 84,987 (6,339) Cash Flow from Financing Activities (181,682) 92,413 Interest paid 48,400 48,438 Proceeds from the sale of minority interest in subsidiaries 0 (21,964) Net increase/(decrease) in cash and cash equivalents (48,295) 112,548 Reconciliation - Free Cash Flow from Operations $ thousands 2016 2015 Free Cash Flow from Operations 133,282 81,617 Cash Flow from Financing Activities (181,682) 92,413 Interest paid 48,400 48,438 Proceeds from the sale of minority interest in subsidiaries 0 (21,964) Expansion Capex (48,295) (87,956) Net increase/(decrease) in cash and cash equivalents (48,295) 112,548 Net Debt & Net Debt to Adjusted EBITDA Net debt is defined as the sum of long- and short-term debt less cash and cash equivalents. This measure is widely used by management and investment analysts and we believe it shows the financial strength of the Company Management is consistently tracking our leverage position and our ability to repay and service our debt obligations over time. We have therefore set a leverage ratio target that is measured by net debt divided by Adjusted EBITDA. We believe that this metric provides useful information to investors because management uses it to manage our debt-equity ratio in order to promote access to debt financing instruments in the capital markets and our ability to meet scheduled debt service obligations. Reconciliation - Net Debt $ thousands 2016 2015 Net Debt 476,827 524,444 Cash and cash equivalents 158,568 198,894 Total Borrowings 635,395 723,338 28 

Adjusted EBIT & Adjusted EBITDA Reconciliation to Profit/Loss - 12M16 Sugar, Ethanol & Land $ thousands Crops Rice Dairy Others Farming Corporate Total Energy Transformation Sales of manufactured products and services rendered 142,124 96,562 32,897 960 272,543 596,692 - - 869,235 Cost of manufactured products sold and services rendered (141,731) (83,574) (32,571) (212) (258,088) (420,493) - - (678,581) Initial recog. and changes in FV of BA and agricultural produce 48,790 10,498 5,476 (13) 64,751 60,705 - - 125,456 Gain from changes in NRV of agricultural produce after harvest (5,841) - - - (5,841) - - - (5,841) Gross Profit from Agricultural Activities 43,342 23,486 5,802 735 73,365 236,904 - - 310,269 General and administrative expenses (2,770) (3,373) (983) (290) (7,416) (22,648) - (20,686) (50,750) Selling expenses (5,692) (11,583) (752) (49) (18,076) (62,518) - (79) (80,673) Other operating income, net (8,787) 402 686 8,497 798 (8,903) - (192) (8,297) Share of gain/(loss) of joint ventures - - - - - - - - - Profit from Operations Before Financing and Taxation 26,093 8,932 4,753 8,893 48,671 142,835 - (20,957) 170,549 Reserve from the sale of minority interests in subsidiaries - - - - - - - - - Adjusted EBIT 26,093 8,932 4,753 8,893 48,671 142,835 - (20,957) 170,549 (-) Depreciation PPE 1,369 2,766 964 192 5,291 122,209 - - 127,500 Adjusted EBITDA 27,462 11,698 5,717 9,085 53,962 265,044 - (20,957) 298,049 Reconciliation to Profit/(Loss) Adjusted EBITDA 298,049 Reserve from the sale of minority interests in subsidiaries - (+) Depreciation PPE (127,500) (+) Financial result, net (157,423) (+) Income Tax (Charge)/Benefit (9,387) Profit/(Loss) for the Period 3,739 Adjusted EBIT & Adjusted EBITDA Reconciliation to Profit/Loss - 12M15 Sugar, Ethanol Land $ thousands Crops Rice Dairy Others Farming Corporate Total & Energy Transformation Sales of manufactured products and services rendered 154,741 84,668 32,981 1,302 273,692 400,622 - - 674,314 Cost of manufactured products sold and services rendered (154,287) (69,075) (33,030) (603) (256,995) (300,791) - - (557,786) Initial recog. and changes in FV of BA and agricultural produce 11,561 2,822 7,542 (181) 21,744 32,784 - - 54,528 Gain from changes in NRV of agricultural produce after harvest 14,691 - - - 14,691 - - - 14,691 Gross Profit from Agricultural Activities 26,706 18,415 7,493 518 53,132 132,615 - - 185,747 General and administrative expenses (3,987) (3,136) (1,451) (74) (8,648) (18,301) - (21,476) (48,425) Selling expenses (5,672) (12,592) (663) (49) (18,976) (50,729) - (563) (70,268) Other operating income, net 16,422 600 (479) 6 16,549 6,340 7,914 263 31,066 Share of gain/(loss) of joint ventures — - - - — - - - — Profit from Operations Before Financing and Taxation 30,784 3,287 4,900 401 39,372 69,925 7,914 (21,776) 95,435 Reserve from the sale of minority interests in subsidiaries - - - - - - 16,066 - - Adjusted EBIT 30,784 3,287 4,900 401 39,372 69,925 23,980 (21,776) 111,501 (-) Depreciation PPE 2,427 2,987 1,456 276 7,146 97,255 - - 104,401 Adjusted EBITDA 33,211 6,274 6,356 677 46,518 167,180 - (21,776) 215,902 Reconciliation to Profit/(Loss) Adjusted EBITDA 215,902 Reserve from the sale of minority interests in subsidiaries (16,066) (+) Depreciation PPE (104,401) (+) Financial result, net (107,740) (+) Income Tax (Charge)/Benefit 7,954 Profit/(Loss) for the Period (4,351) 29 

Adjusted EBIT & Adjusted EBITDA Reconciliation to Profit/Loss - 4Q16 Sugar, Ethanol & Land $ thousands Crops Rice Dairy Others Farming Corporate Total Energy Transformation Sales of goods and services rendered 32,476 15,673 11,484 183 59,816 272,272 - - 332,088 Cost of goods sold and services rendered (32,463) (13,782) (11,273) (70) (57,588) (192,128) - - (249,716) Initial recog. and changes in FV of BA and agricultural produce 5,938 451 1,769 (141) 8,017 8,515 - - 16,532 Gain from changes in NRV of agricultural produce after harvest 365 - - - 365 - - - 365 Margin on Manufacturing and Agricultural Act. Before Opex 6,316 2,342 1,980 (28) 10,610 88,659 - - 99,269 General and administrative expenses (836) (1,090) (243) (95) (2,264) (7,479) - (4,803) (14,546) Selling expenses (1,271) (2,345) (276) (3) (3,895) (26,715) - (48) (30,658) Other operating income, net 9 88 218 360 675 13,974 - 7 14,656 Share of gain/(loss) of joint ventures - - - - - - - - - Profit from Operations Before Financing and Taxation 4,218 (1,005) 1,679 234 5,126 68,439 - (4,844) 68,721 Reserve from the sale of minority interests in subsidiaries - - - - - - - - - Adjusted EBIT 4,218 (1,005) 1,679 234 5,126 68,439 - (4,844) 68,721 (-) Depreciation PPE 340 886 241 36 1,503 43,628 - - 45,131 Adjusted EBITDA 4,558 (119) 1,920 270 6,629 112,067 - (4,844) 113,852 Reconciliation to Profit/(Loss) Adjusted EBITDA 113,852 Reserve from the sale of minority interests in subsidiaries - (+) Depreciation PPE (45,131) (+) Financial result, net (50,305) (+) Income Tax (Charge)/Benefit (6,486) Profit/(Loss) for the Period 11,930 Adjusted EBIT & Adjusted EBITDA Reconciliation to Profit/Loss - 4Q15 Sugar, Ethanol Land $ thousands Crops Rice Dairy Others Farming Corporate Total & Energy Transformation Sales of manufactured products and services rendered 39,467 18,642 7,591 314 66,014 152,654 - - 218,668 Cost of manufactured products sold and services rendered (39,362) (14,894) (7,573) (67) (61,896) (113,249) - - (175,145) Initial recog. and changes in FV of BA and agricultural produce 4,545 (322) 1,383 (157) 5,449 15,651 - - 21,100 Gain from changes in NRV of agricultural produce after harvest 4,777 - - - 4,777 - - - 4,777 Gross Profit from Agricultural Activities 9,427 3,426 1,401 90 14,344 55,056 - - 69,400 General and administrative expenses (1,331) (770) (343) (19) (2,463) (3,802) - (5,815) (12,080) Selling expenses (1,389) (3,103) (149) (24) (4,665) (17,361) - (17) (22,043) Other operating income, net 2,357 (92) 84 0 2,349 (10,476) 7,914 12 (201) Share of gain/(loss) of joint ventures — - - - — - - - — Profit from Operations Before Financing and Taxation 8,906 (539) 993 47 9,407 23,417 7,914 (5,820) 34,918 Reserve from the sale of minority interests in subsidiaries - - - - - - 16,066 - - Adjusted EBIT 8,906 (539) 993 47 9,407 23,417 23,980 (5,820) 50,984 (-) Depreciation PPE 999 702 342 60 2,103 26,938 - - 29,041 Adjusted EBITDA 9,905 163 1,335 107 11,510 50,355 - (5,820) 80,025 Reconciliation to Profit/(Loss) Adjusted EBITDA 80,025 Reserve from the sale of minority interests in subsidiaries (16,066) (+) Depreciation PPE (29,041) (+) Financial result, net (50,658) (+) Income Tax (Charge)/Benefit 6,142 Profit/(Loss) for the Period (9,598) 30 

Condensed Consolidated Financial Statements Condensed Consolidated Statement of Income Statement of Income $ thousands 4Q16 4Q15 Chg % 2016 2015 Chg % Sales of goods and services rendered 332,088 218,668 51.9% 869,235 674,314 28.9% Cost of goods sold and services rendered (249,716) (175,145) 42.6% (678,581) (557,786) 21.7% Initial recognition and Changes in fair value of biological assets and agricultural produce 16,532 21,100 (21.6%) 125,456 54,528 130.1% Changes in net realizable value of agricultural produce after harvest 365 4,777 (92.4%) (5,841) 14,691 (139.8%) Margin on Manufacturing and Agricultural Activities Before Operating Expenses 99,269 69,400 43.0% 310,269 185,747 67.0% General and administrative expenses (14,546) (12,080) 20.4% (50,750) (48,425) 4.8% Selling expenses (30,658) (22,043) - % (80,673) (70,268) - % Other operating income, net 14,656 (201) n.a (8,297) 31,066 (126.7%) Share of loss of joint ventures - (158) n.a - (2,685) (100.0%) Profit from Operations Before Financing and Taxation 68,721 34,918 96.8% 170,549 95,435 78.7% Finance income 982 1,916 (48.7%) 7,957 9,150 (13.0%) Finance costs (51,287) (52,574) (2.4%) (165,380) (116,890) 41.5% Financial results, net (50,305) (50,658) (0.7%) (157,423) (107,740) 46.1% (Loss) / Profit Before Income Tax 18,416 (15,740) (217.0%) 13,126 (12,305) (206.7%) Income tax (Benefit) / Expense (6,486) 6,142 (205.6%) (9,387) 7,954 (218.0%) (Loss) / Profit for the Year 11,930 (9,598) (224.3%) 3,739 (4,351) (185.9%) 31 

Condensed Consolidated Statement of Cash Flow Statement of Cashflows $ thousands 4Q16 4Q15 Chg % 12M16 12M15 Chg % Cash flows from operating activities: Profit for the period 11,930 (9,598) n.a 3,739 (4,351) n.a Adjustments for : n.a Income tax benefit 6,486 (6,142) n.a 9,387 (7,954) n.a Depreciation 44,912 28,893 55.4% 126,799 103,816 22.1% Amortization 219 148 48.0% 701 585 19.8% Gain from disposal of farmland and other assets - (7,914) (100.0%) - (7,914) (100.0%) Gain from of disposal of other property items 1,332 188 1,255 (721) 608.5% n.a Gain from disposal of subsidiary - - n.a - - n.a Equity settled share-based compensation granted 871 1,236 (29.5%) 4,796 4,396 9.1% Loss/(Gain) from derivative financial instruments and forwards (16,810) 8,266 n.a 21,745 (17,686) n.a Interest and other expense, net 13,738 11,288 21.7% 44,734 43,822 2.1% Initial recognition and changes in fair value of non harvested biological 26,653 (5,968) n.a (9,811) (11,326) (13.4%) assets (unrealized) Changes in net realizable value of agricultural produce after harvest (750) (2,055) (63.5%) 90 (4,406) n.a (unrealized) Provision and allowances 256 (62) n.a 341 (79) n.a Share of loss from joint venture - 158 (100%) - 2,685 (100.0%) Foreign exchange gains, net 3,878 20,313 (80.9%) 19,062 23,423 (18.6%) Cash flow hedge – transfer from equity 33,028 17,862 84.9% 85,214 32,700 160.6% Discontinued operations - - n.a - - n.a Subtotal 125,743 56,613 122.1% 308,052 156,990 96.2% Changes in operating assets and liabilities: Increase in trade and other receivables 46,365 15,297 203.1% (30,996) (2,300) 1,247.7% Increase in inventories (69,237) 256,333 n.a (22,301) 188,107 n.a Decrease in biological assets 83,637 (236,509) n.a (23,677) (217,536) (89.1%) Decrease in other assets 32 (61) n.a 83 (871) n.a (Increase) in derivative financial instruments 9,519 (1,699) n.a (17,892) 25,880 n.a Decrease in trade and other payables 27,068 9,557 183.2% 39,054 (9,871) n.a (Decrease)/Increase in payroll and social security liabilities (2,836) (1,801) 57.5% 3,052 4,996 (38.9%) Increase/(Decrease) in provisions for other liabilities 167 (368) n.a 1,175 21 5,495.2% Net cash generated in operating activities before interest and taxes paid 220,458 97,362 126.4% 256,550 145,416 76.4% Income tax paid (148) (24) 516.7% (1,149) (230) 399.6% Net cash generated from operating activities 220,310 97,338 126.3% 255,401 145,186 75.9% Cash flows from investing activities: Continuing operations: Purchases of property, plant and equipment (41,175) (30,593) 34.6% (134,105) (141,770) (5.4%) Purchases of intangible assets (201) (189) 6.3% (1,218) (1,203) 1.3% Purchase of cattle and non current biological assets planting cost - - n.a - - n.a Interest received 948 1,381 (31.4%) 7,671 8,201 (6.5%) Payment of seller financing arising on subsidiaries acquired - - n.a - - n.a Loans to joint venture - (167) (100.0%) - (8,082) (100.0%) Investments in joint ventures - - n.a - - n.a Proceeds from sale of farmland and other assets 3,423 12,610 (72.9%) 3,423 12,610 (72.9%) Proceeds from sale of property, plant and equipment 665 600 10.8% 2,215 1,303 70.0% Proceeds from disposal of subsidiaries (3,423) - n.a - 3,890 (100.0%) Proceeds from sales of financial assets - - n.a - - n.a Discontinued operations - - n.a - - n.a Net cash used in investing activities (39,763) (16,358) 143.1% (122,014) (125,051) (2.4%) Cash flows from financing activities: Proceeds from equity settled share-based compensation exercised 104 - n.a 380 1,259 (69.8%) Proceeds from long-term borrowings 55,805 13,592 310.6% 167,385 299,343 (44.1%) Payments of long-term borrowings (115,184) (87,351) 31.9% (277,913) (165,455) 68.0% Proceeds from the sale of minority interest in subsidiaries - 21,964 (100.0%) - 21,964 (100.0%) Net increase in short-term borrowings (77,564) (13,688) 466.7% (14,638) 2,736 n.a Interest paid (16,585) (17,710) (6.4%) (48,400) (48,438) (0.1%) Proceeds from SOP excercised - - n.a - - n.a Payment of derivatives financial instruments (1,394) (18,676) (92.5%) (3,724) (18,676) (80.1%) Purchase of own shares (3,744) (25) 14,876.0% (4,772) (320) 1,391.3% Net cash generated from financing activities (158,562) (101,894) 55.6% (181,682) 92,413 n.a Net increase/(decrease) in cash and cash equivalents 21,985 (20,914) n.a (48,295) 112,548 n.a Cash and cash equivalents at beginning of period 136,482 224,349 (39.2%) 198,894 113,795 74.8% Effect of exchange rate changes on cash and cash equivalents 101 (4,541) n.a 7,969 (27,449) n.a Cash and cash equivalents at end of period 158,568 198,894 (20.3%) 158,568 198,894 (20.3%) 32 

Condensed Consolidated Balance Sheet Statement of Financial Position $ thousands December 31, 2016 December 31, 2015 Chg % ASSETS Non-Current Assets Property, plant and equipment 802,608 696,889 15.2% Investment property 2,666 4,796 (44.4%) Intangible assets 17,252 16,661 3.5% Biological assets 8,516 6,476 31.5% Investments in joint ventures - - n.a Deferred income tax assets 38,586 68,744 (43.9%) Trade and other receivables 17,412 21,795 (20.1%) Other assets 566 651 (13.1%) Total Non-Current Assets 887,606 816,012 8.8% Current Assets Biological assets 136,888 105,342 29.9% Inventories 111,754 85,286 31.0% Trade and other receivables 157,528 145,011 8.6% Derivative financial instruments 3,398 4,849 (29.9%) Cash and cash equivalents 158,568 198,894 (20.3%) Other assets 24 n.a Total Current Assets 568,160 539,382 5.3% TOTAL ASSETS 1,455,766 1,355,394 7.4% SHAREHOLDERS EQUITY Capital and reserves attributable to equity holders of the parent Share capital 183,573 183,573 - % Share premium 937,250 937,674 (0.0%) Cumulative translation adjustment (527,364) (568,316) (7.2%) Equity-settled compensation 17,218 16,631 3.5% Cash flow hedge (37,299) (137,911) (73.0%) Reserve for the sale of non contolling interests in subsidiaries 41,574 41,574 - % Treasury shares (1,859) (1,936) (4.0%) Retained earnings 50,998 48,795 4.5% Equity attributable to equity holders of the parent 664,091 520,084 27.7% Non controlling interest 7,582 7,335 3.4% TOTAL SHAREHOLDERS EQUITY 671,673 527,419 27.4% LIABILITIES Non-Current Liabilities Trade and other payables 1,427 1,911 (25.3%) Borrowings 430,304 483,651 (11.0%) Deferred income tax liabilities 14,689 15,636 (6.1%) Payroll and social security liabilities 1,235 1,236 (0.1%) Derivatives financial instruments 662 119 456.3% Provisions for other liabilities 3,299 1,653 99.6% Total Non-Current Liabilities 451,616 504,206 (10.4%) Current Liabilities Trade and other payables 92,158 53,731 71.5% Current income tax liabilities 1,387 962 44.2% Payroll and social security liabilities 26,844 22,153 21.2% Borrowings 205,092 239,688 (14.4%) Derivative financial instruments 6,406 6,575 (2.6%) Provisions for other liabilities 590 660 (10.6%) Total Current Liabilities 332,477 323,769 2.7% TOTAL LIABILITIES 784,093 827,975 (5.3%) TOTAL SHAREHOLDERS EQUITY AND LIABILITIES 1,455,766 1,355,394 7.4% 33