6-K 1 t1701461_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 May, 2017

Commission File Number 001-35052

Adecoagro S.A.

(Translation of registrant’s name into English)

Vertigo Naos Building 6,
Rue Eugene Ruppert,
L-2453, Luxembourg
Grand Duchy of Luxembourg
(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 THREE MONTH PERIOD ENDED MARCH 31, 2017

On May 15, 2017, the registrant issued a press release pertaining to its results of operations for the three month period ended March 31, 2017 (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.

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.

| 2 |

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: May 15, 2017 |  |

1Q17 Earnings Release Conference Call English Conference Call May 16, 2017 9 a.m. (US EST) 10 a.m. Buenos Aires time 10 a.m. São Paulo time 3 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 recorded 1Q17 Adjusted EBITDA of $44.8 million, 3.6% higher year-over-year Luxembourg, May 15, 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 first quarter ended March 31, 2017. The financial information contained in this press release is based on the unaudited condensed 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 22 for a definition and reconciliation to IFRS of the Non IFRS measures used in this report. Highlights Financial & Operating Performance $thousands 1Q17 1Q16 Chg% Gross Sales 166,091 121,484 36.7% Net Sales (1) 159,953 117,551 36.1% Adjusted EBITDA (2) Farming & Land Transformation 19,651 26,204 (25.0%) Sugar, Ethanol & Energy 30,264 22,088 37.0% Corporate Expenses (5,158) (5,079) 1.6% Total Adjusted EBITDA 44,757 43,213 3.6% 28.0% 36.8% (23.9%) Adjusted EBITDA Margin (2) Adj. EBITDA Margin net of 3rd party commerc. (3) 33.1% 41.4% (20.1%) Net Income 5,967 2,752 116.8% Farming Planted Area (Hectares) 224,708 210,556 6.7% Sugarcane Plantation Area (Hectares) 136,384 130,637 4.4% Adecoagro recorded Adjusted EBITDA(3) of $44.8 million in 1Q17, representing a 3.6% increase compared to 1Q16. Gross sales in 1Q17 reached $166.1 million, 36.7% higher year-over-year Net income in 1Q17 stands at $6.0 million, $3.2 million higher than 1Q16. (1) Net Sales are equal to Gross Sales minus sales taxes related to sugar, ethanol and energy. (2) Please see “Reconciliation of Non-IFRS measures” starting on page 22 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, and 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

Financial & Operational Performance Highlights Sugar, Ethanol & Energy Adjusted EBITDA in our Sugar, Ethanol & Energy business in 1Q17 reached $30.3 million, $8.2 million higher than 1Q16. Results were mainly driven by (i) higher sugar, ethanol and energy sales volumes (5.4%, 13.0% and 89.3%, respectively); (ii) higher realized prices (57.9%, 18.5% and 27.0% higher, respectively); and (iii) a $14.2 million gain derived from the mark-to-market effect of our sugar hedge position. These positive effects were partially offset by (iv) an increase in unitary production costs mainly explained by an increase in third party sugarcane purchases and the appreciation of the BRL; and (v) a $2.7 million loss from changes in fair value of our sugarcane plantation, mainly resulting from lower projected sugar prices and BRL appreciation. Rains in our cluster in Mato Grosso do Sul during November 2016 through March 2017 were 25% below the 10-year average. Therefore, we decided to fine-tune our harvest schedule in order to maximize sugarcane productivity throughout the year. As a result, we decided to slowdown the pace of crushing during the first quarter, and only crush: (i) our own sugarcane that has grown to 16-18 months in age; and (ii) sugarcane purchased from third-parties. This strategy will allow our traditional 12-month sugarcane to grow an additional 2 or 3 months, and benefit from normalized rains during March and April. At the same time, any down time was used to conduct “off-season” maintenance of industrial equipment, agricultural machinery and sugarcane replanting. Despite our decision to decelerate the milling pace, we were able to crush a total of 1.5 million tons during 1Q17, essentially in line with last year. Despite dry weather during the summer months, sugarcane yields during the quarter reached 94.1 tons/ha, significantly above the 5-year average yield for Brazil’s center-south region. This is explained by our focus on enhancing sugarcane quality and treatment. Yields fell 8.0% compared to our yields in 1Q16 as a result of above average rainfalls during November 2015 through February 2016. In terms of sugar content, TRS during the quarter increased to 110.0 kg/ton, 2.6% higher than 1Q16. Farming & Land Transformation Adjusted EBITDA in our Farming business in 1Q17 was $19.7 million, 25% lower than 1Q16. This decrease is primarily temporal in nature due to different planting/harvesting cycles, which can vary due to crop rotations, seed varieties and weather. Therefore we expect stronger performance in the Crops and Rice businesses in the upcoming quarters as these seasonality issues are reversed. In the case of soybean and corn, excess rains during January and February have delayed the seeding of the crops. The crops are developing normally and yield potential has not been affected, but margin recognition has been skewed towards the second and third quarters. Regarding the rice crop, despite a 16.5% increase in yields, margins were negatively affected by (i) higher harvesting expenses due to setbacks caused by rains; and (ii) a 21.1% decrease in white rice sales due to schedule of shipments, partially offset by a 14.6% increase in white rice prices. Consequently, as we ramp up sales volumes during the upcoming quarters we expect to offset the reduction in margins reported in the current quarter. In terms of foreign exchange, our costs of production in Argentina have been negatively affected in dollar terms as a result of the appreciation of the Argentine peso in real terms. 2

These negative effects were partially offset by (i) a $1.9 million increase in our Dairy business driven by solid productivity and rising milk prices; and (ii) a $1.6 million gain derived from the mark-to-market effect of our soybeans and corn hedge derivatives. Consolidated Net Income Net Income in 1Q17 was $6.0 million, $3.2 million higher than in 1Q16. Net income during the quarter was enhanced by stronger Adjusted EBITDA and improved financial results, and was partially offset by a $4.1 million increase in depreciation expenses resulting mainly from the expansion of our sugarcane plantation and the appreciation of the Brazilian Real. Strategy Execution Sugar, Ethanol & Energy Expansion Update The expansion of our cluster in Mato Grosso do Sul, as announced in our 4Q16 Earnings Release, is currently underway and being executed according to schedule. The expansion of the Angelica mill is already complete. We have installed larger mill rollers and expanded the sugar centrifugation and ethanol filtration processes. Nominal crushing capacity has increased by 0.9 million, from 4.7 million tons per year to 5.6 million tons per year. Regarding the Ivinhema mill, we have already begun building the foundations for the new mill tandem (#6). Regarding the expansion of our sugarcane plantation to supply the new milling capacity, we have already leased the necessary land scheduled to be planted in 2017 at prices according to budget. Planting activities are being executed as planned. We have succesfully planted 7.0 thousand hectares or 28% of the targeted area for 2017. In addition, depreciated agricultural machinery has already been renewed according to plan, which we expect will increase our harvest capacity by 10% year-over-year. Accretive Growth Projects in our Farming Business In light of the improved regulatory framework and outlook for the agribusiness sector in Argentina, we have identified several growth opportunities across our farming operations. These investments will allow us to increase operational efficiency, reduce costs and enhance returns across our dairy, rice and crops segments. These projects are expected to generate ROIC well in excess of our cost of capital. o Dairy business: our free-stall dairies #1 and #2 are fully ramped-up and delivering superior productivity. We are now ready to continue consolidating the operation and increase capacity. We plan to invest $50.0 million over the next four years to build free-stalls #3 and #4. This project will allow us to double production capacity, reaching over 185 million liters of fluid milk production per year and over 14 thousand milking cows. This investment is a unique opportunity to leverage on Argentina’s competitive advantages in transforming vegetable protein into milk protein, our operational expertise and the positive outlook for global and local milk prices. o Rice business: during the second half of the year we will be investing $6.0 million in various equipment and machines to improve our rice processing and distribuition, and increase the value of main by-products. These projects include: (i) a rice parboiling plant; (ii) a new packaging 3

machine for branded white rice; (iii) expansion of finished goods storage capacity; (iv) a rice husk bailing press; and (v) a rice bran oil de-activation system. This will allow us to strengthen our brand in the local market and increase margins. o Crops business: following the recent boost in Argentina’s grain production volumes, specifically corn and wheat, certain regions are affected from lack of grain storage and conditioning capacity. This is generating bottlenecks and increasing logistics costs. In order to continue managing our production capacity efficiently, we will build two new storage and conditioning facilities located near the Rosario and Bahia Blanca ports. These assets will allow us to reduce our conditioning and logistics costs and enhance our commercial flexibility. Total investment is expected to reach $11.0 million over the next 12-months. Market Overview Sugar prices continued to rally during January and early February, driven by news of a smaller sugarcane crop in India which would result in strong sugar imports. However, lack of fundamental news, specially the absence of imports announcements from the Indian government, resulted in financial speculators reducing their net long position significantly, pressuring prices strongly. Average sugar prices during 1Q17 were 6% lower than average prices in 4Q16, but 36% higher than prices in 1Q16. Going forward, we expect uncertainties regarding weather and consequently production volumes in key countries should provide high price volatility Ethanol prices fell during 1Q17, reaching their lowest levels since August 2016, driven by lower demand and higher import volumes throughout the quarter. As reported by UNICA, anhydrous and hydrous sales volumes were 1.4% and 21.0% lower year-over-year, respectively. Consequently, average prices in the quarter were 12% below 1Q16 and 11% below 4Q16. The market is expecting another reduction in ethanol production for the current harvest (2017/18) and an increase in overall fuel consumption, which could impact prices positively. Energy spot prices during January and February ranged between 121 and 128 BRL/MWh, on average 5.0% lower year-over-year. However, as a result of below average rains in the south of Brazil and an increase in power consumption, prices began to rise during March. The average price per megawatt hour in March was 216 BRL, and grew to 370 BRL in April. Water reservoir levels are currently at 39.4% compared to 57.1% at the same time last year. Grain prices continue to feel the pressure of four straight years of global bumper crops. Corn prices increased 2.4% during 1Q17, while soybean prices fell 4.2%. Corn prices were negatively affected during early March after USDA reported US corn stocks slightly above market expectations. Prices found support towards the end of the month after USDA reported a 4.3% year-over-year reduction in US planted acreage. In the case of soybean, prices found bearish pressure during March as USDA reported a 7.3% year-over-year increase in US planted acreage for 2017/18 and higher than expected stocks. In the case of South America, excellent weather conditions during crop development are expected to result in record crops. As of April 2017, USDA estimated combined production for Argentina and Brazil of 167 million tons of soybean and and 132 million tons of corn, respectively 8.9% and 37.5% higher year-over-year. 4

Farming & Land Transformation Business Operational Performance 2016/17 Harvest Year Farming Production Data Planting & Production Planted Area (hectares) 2016/17 Harvested Area Yields (Tons per hectare) (3) 2016/17 2015/16 Chg% Hectares% Harvested Production 2016/17 2015/16 Chg% Soybean 55,215 59,474 (7.2%) 7,359 13.3% 28,255 3.8 3.2 19.5% Soybean 2nd Crop 29,243 28,903 1.2% 546 1.9% 1,855 3.4 2.5 37.5% Corn (1) 44,998 38,663 16% 6,644 14.8% 44,679 6.7 6.3 7.6% Corn 2nd Crop 9,982 3,994 149.9% - 0.0% - - 3.9 - Wheat (2) 38,008 32,396 17.3% 38,007 100.0% 115,336 3.0 2.3 32.8% Sunflower 5,413 9,547 (43.3%) 5,329 98.4% 9,698 1.8 1.8 3.0% Cotton 2,121 - n.a - 0.0% - - 0.7 - Total Crops 184,980 172,976 6.9% 57,885 31.3% 199,823 Rice 39,728 37,580 5.7% 39,392 99.2% 233,937 5.9 5.1 16.5% Total Farming 224,708 210,556 6.7% 97,277 43.3% 433,760 Owned Croppable Area 121,260 120,065 1.0% Leased Area 64,223 64,486 (0.4%) Second Crop Area 39,224 26,005 50.8% Total Farming Area 224,708 210,556 6.7% Milking Cows (Average Heads) Milk Production (MM liters)(1) Productivity (Liters per cow per day) Dairy 1Q17 1Q16 Chg% 1Q17 1Q16 Chg% 1Q17 1Q16 Chg% Milk Production 6,774 6,746 0.4% 21.6 21.5 0.8% 35.5 35.0 1.5% (1) Includes sorghum and peanuts (2) Includes barley. (3) Yields for 2016/17 season are partial yields related to the harvested area as of April 30, 2017. Yields for 2015/16 reflect the full harvest season. Note: Some planted areas may reflect minor adjustments compared to previous reports due to a more accurate area measurement, which occurred during the current period. As of January 31, 2017, Adecoagro’s planting activities for the 2016/17 harvest year were completed. Our total planted area reached 224,708 hectares, 6.7% higher compared to the previous harvest year. Adecoagro’s owned croppable area, which is the area that provides the highest EBITDA contribution, has increased by 1.0%. Leased area, which is an opportunistic business driven by return on invested capital, has increased by 11.5% compared to the 2015/16 harvest year. Double crop area, (mostly wheat followed by a soy 2nd crop) increased by 19.2%, as a result of the improvement in wheat margins. As of the end of April 2017, harvest operations for most of our crops were well underway, with 43.3% of total area already harvested. Soybean: As of the end of April 2017, we harvested 13.3% of the soybean crop. In the Humid Pampas region, crop development evolved above average as a result of abundant moisture and good temperatures during the season. The crop is now being harvested and achieving yields above the historical average. Soybean 2nd crop: The harvest of second crop soybean started during mid-April 2017 and is advancing well. We expect strong productivity, above the historical average. 5

Corn: As of the end of April 2017, the harvested area for early corn totaled 6,644 hectares or 14.8% of the total planted area. Due to abundant rains during the beginning of the year, corn seeding was delayed. Therefore, the harvest is currently less advanced than the previous year. Despite the delayed planting, the crop has received abundant rains and has developed normally. We expect good productivity. Wheat: The harvest of wheat was completed during the beginning of the year with 38,007 hectares harvested. Average yield for the wheat crop was 3.0 tons per hectare, 32.8% higher than the previous harvest year. Planting for the 2017/18 harvest year will begin in May 2017 favored by abundant rainfalls from January to April 2017, which have replenished soil moisture levels. Sunflower: The harvest of the sunflower crop began in late December 2016. As of the end of April 2017, 98.4% of sunflower had been harvested yielding an average of 1.8 tons per hectare, 3.0% higher compared with the 2015/16 season. Rice: As of the end of March 2016, the rice harvest was almost complete, reaching 99.2% of total planted area. Harvested yields reached 5.9 tons per hectare, 16.5% above the previous harvest year. Supply of water in dams and rivers was sufficient to flood the rice fields throughout the crop's cycle. We expect yields to improve in the upcoming harvest years as we continue with the transformation process and zero-leveling of our rice farms precise leveling of the land based on GPS and Laser technology, which we expect will result in reduced water irrigation requirements and lower costs of labor and energy. Farming & Land Transformation Financial Performance Farming & Land transformation business - Financial highlights $thousands 1Q17 1Q16 Chg% Gross Sales Farming 55,439 47,933 15.7% Total Sales 55,439 47,933 15.7% Adjusted EBITDA (1) Farming 19,651 26,204 (25.0%) Land Transformation - - - Total Adjusted EBITDA (1) 19,651 26,204 (25.0%) Adjusted EBIT (1) Farming 18,126 25,030 (27.6%) Land Transformation - - - Total Adjusted EBIT (2) 18,126 25,030 (27.6%) Adjusted EBIT(2) for the Farming business was $18.1 million in 1Q17, $6.9 million lower compared to 1Q16. This 27.6% decrease is primarily attributed to the crops and rice businesses, and is mostly temporal in nature due to seasonality and planting/harvesting cycles. Therefore we expect stronger performance in the upcoming quarters. (1) Please see “Reconciliation of Non-IFRS measures” starting on page 22 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profi t/Loss. Adjusted EBITDA is defined as consolidated profit from operations before financing and taxation, depreciation and amortization plus the gains or losses from disposals of non-controlling interests in subsidiaries . Adjusted EBIT is defined as consol idated 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. (2) Adecoagro uses the Adjusted EBIT performance measure rather than Adjusted EBITDA to compare its different farming business. We note that diff erent farming businesses or production models may have more or less depreciation or amortization based on the ownership of fixed as sets employed in production. Consequently similar types of costs may be expensed or capitalized. For example, Adecoagro’s far ming business in Argentina is based on a “contractor” production model, wherein Adecoagro hires planting, harvesting and spraying s ervices from specialized third party machine operators. This model minimizes the ownership of fixed assets, thus, reducing depreciation and amortization. However, under this model operating fees are expensed increasing produc tion costs. The Adjusted EBIT performance measure controls for such differences in business models and we believe is a more appropriate metric to compare the performance of the company relative to its peers. 6

In the case of the Crops business, performance in the quarter was negatively affected by the delay in soybean and corn planting due to excess rains at the beginning of the year. Although yield potential is not at risk, the delay pushes margin recognition towards the second and third quarters. In addition, the real appreciation of the Argentine peso has increased our costs of production in dollar terms and decreased our margins. Regarding the Rice business, despite an 16.5% increase in yields for 1Q17 compared to 1Q16, farm margins were $2.5 million lower than the previous year as a result of higher productions costs explained by (i) an increase in harvesting expenses due to rains; and (ii) the appreciation of the Argentine peso. In addition, white rice sales volumes were 21.1% lower than last year due to the schedule of shipments, but prices were 14.6% higher and are expected to continue increasing. Therefore, as we ramp up sales during the rest of the year, we expect financial performance to improve. The Dairy business reported solid performance during 1Q17, driven by high productivity and rising prices. Adjusted EBITDA was $2.0 million, $1.9 million higher year-over-year. Crops Segment Crops - Highlights metric 1Q17 Gross Sales $thousands 25,196 21,949 thousand tons 137.5 104 $per ton 183.3 210 Adjusted EBITDA $thousands 12,520 16,975 Adjusted EBIT $thousands 12,185 16,652 Planted Area (1) hectares 224,716 210,556 (1) Does not include second crop planted area. Adjusted EBIT in our Crops segment reached $12.2 million in 1Q17, marking a 26.8% decrease compared to the same period of last year. The decrease is primarily the result of two main factors. First, we recognized a decrease of $4.1 million in margin recognition as a result of a delay in the seeding of corn and soybean second crop due to excess humidity. Despite the fact that the percentage of hectares with significant biological growth did not vary significantly from 1Q16 to 1Q17, the crops growing in the fields as of March 31, 2017, are in an earlier growth stage compared to a year ago. Although crop yield potential is essentially the same, less margin was recognized in changes in fair value. Second, we recorded a $0.4 million increase in selling and administrative expenses as a result of the appreciation of the Argentine peso in real terms. These effects were partially offset by a $2.9 million gain derived from the mark-to-market effect of our commodity hedge position. 7

Crops - Changes in Fair Value Breakdown Soy 2nd Corn 2nd 1Q17 metric Soy Corn Wheat Sunflower Cotton Total Crop Crop 2016/17 Harvest Year Total Planted Area Hectares 54,768 30,604 44,527 9,982 39,100 5,454 2,640 187,075 Area planted in initial growth stages Hectares - 2,183 569 - - 2,640 5,392 Area planted with significant biological growth Hectares 51,084 28,251 37,398 9,982 - 33 - 126,748 Changes in Fair Value 1Q17 from planted area 2016/17 (i) $thousands 3,286 1,618 4,292 1,421 - 11 - 10,628 Area harvested in previous period Hectares - - - - 37,601 844 - 38,445 Area harvested in current period Hectares 3,684 170 6,560 - 1,499 4,577 - 16,491 Changes in Fair Value 1Q17 from harvested area 2016/17 $thousands 657 29 926 - (857) 514 - 1,269 (ii) Total Changes in Fair Value in 1Q17 (i+ii) $thousands 3,943 1,647 5,218 1,421 (857) 525 11,897 The table above shows the gains or losses from crop production generated during 1Q17. A total of 187,075 hectares were planted in the 2016/17 crop season. As of March 31, 2016, 126,748 hectares had attained significant biological growth generating Changes in Fair Value of biological assets of $10.6 million, as opposed to $12.8 million during 1Q16. Harvest operations for our 2016/17 crops are underway. As we complete the harvest we expect to see improved yields in most of our crops. A total of 16,491 hectares of soybean, corn, wheat and sunflower were harvested during 1Q17, generating Changes in Fair Value of Agricultural Produce of $1.3 million. As of 1Q16, we had harvested 23,538 hectares generating Changes in Fair Value of Agricultural Produce of $3.3 million. As described above, this is mainly explained by the delay in crop seeding in this harvest year due to abundant rains. Nonetheless, the crops are currently in very good conditions and we expect above average productivity. As a result of these two effects, Total Changes in Fair Value in 1Q17 reached $11.9 million, compared to $16.0 million in 1Q16. Crops - Gross Sales Breakdown Amount ($'000) Volume $per unit Crop 1Q17 1Q16 Chg% 1Q17 1Q16 Chg% 1Q17 1Q16 Chg% Soybean 5,362 6,208 (13.6%) 16,668 25,739 (35.2%) 322 241 33.4% Corn (1) 9,414 7,217 30.4% 56,242 42,086 33.6% 167 171 (2.4%) Wheat (2) 9,700 3,990 143.1% 63,507 25,969 144.6% 153 154 (0.6%) Sunflower 422 3,104 (86.4%) 1,193 10,005 (88.1%) 354 310 14.0% Cotton Lint - 835 (100.0%) - 715 (100.0%) n.a 1,168 n.a Others 298 595 (49.9%) Total 25,196 21,949 14.8% 137,610 104,515 (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) Sales in 1Q17 were 14.8% higher than 1Q16 primarily driven by higher physical sales volumes of corn and wheat coupled with higher selling prices for soybean and sunflower. 8

Rice Segment Rice - Highlights metric 1Q17 1Q16 Chg% Gross Sales $thousands 19,260 20,549 (6.3%) $thousands 17,475 19,329 (9.6%) Gross Sales of White Rice thousand tons (1) 57.3 72.7 (21.1%) $per ton 305 266 14.6% Gross Sales of By-products $thousands 1,785 1,220 46.3% Adjusted EBITDA $thousands 4,732 8,578 (44.8%) Adjusted EBIT $thousands 3,810 8,023 (52.5%) Area under production (2) hectares 39,392 39,600 (0.5%) Rice Mills Total Rice Produced thousand tons (1) 56.7 39.9 42.0% Ending stock thousand tons (1) 29.6 32.9 (10.2%) (1) Of rough rice equivalent. Financial performance of our Rice segment during 1Q17 is primarily explained by the harvest of the 2016/17 rice crop and to a lesser extent by the sales of processed rice and by-products. In our farm operations we successfully harvested 39,392 hectares of rice with an average yield of 5.9 tons/ha, 16.5% higher compared to the 2015/16 harvest. The rice harvest resulted in Changes in Fair Value of Agricultural Produce of $6.0 million compared to $8.5 million last season. The decrease in rice margins is primarily explained by higher production costs in dollar terms as a result of (i) an increase in harvesting expenses due to abundant rains, and (ii) the appreciation of the Argentine peso in real terms; and partially offset by (iii) a reduction in water pumping costs due to a replacement of diesel engines with electric pumps. In terms of sales of processed rice, we sold 57.3 thousand tons of white rice in 1Q17, compared to 72.2 thousand tons in 1Q16. Overall, gross sales reached $19.3 million, 6.3% lower than 1Q16, primarily as a result of a 21.1% decrease in selling volumes partially offset by a 14.6% increase in selling prices, measured in USD. We expect white rice prices to remain more competitive than in 2016 as a result of a favorable global supply and demand outlook. As we ramp up sales volumes during the upcoming quarters, we expect to make up for the lower financial performance reported in 1Q17. 9

Dairy Segment Dairy - Highlights metric 1Q17 1Q16 Chg% Gross Sales $thousands (1) 10,812 5,169 109.2% million liters (2) 27.6 21.5 28.2% $per liter (3) 0.36 0.21 74.4% Adjusted EBITDA $thousands 2,278 367 520.7% Adjusted EBIT $thousands 2,040 124 1,545.2% Milking Cows Average Heads 6,774 6,746 0.4% Cow Productivity Liter/Cow/Day 35.5 35.0 1.5% Total Milk Produced million liters 21.6 21.5 0.8% (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. Includes (i)$3.1 million from the sales of culled cows in 2016 and $3.7 million in 2015; (ii)$0.1 million from the sales of whey in 2016 and $4.8 million form the sales of powder milk in 2016 and $1.2million in 2015 (2) Selling volumes include (i) 8.1 million liters of powder milk in 4Q16 . Includes 13.2 million liters of powder milk in 2016 and 3.3 million in 2015. (3) Sales price includes the sale of fluid milk and whole milk powder and excludes cattle and whey sales Milk production reached 21.6 million liters in 1Q17, slightly above 1Q16. This increase is attributable to a 0.4% increase in our dairy cow herd driven by enhanced reproduction efficiencies at our two free-stall dairy facilities, and enhanced by a 1.5% increase in cow productivity. Average productivity grew from 35.0 liters per cow per day in 1Q16 to 35.5 liters in 1Q17. Gross Sales in 1Q17 reached $10.8 million, 109.2% higher year-over-year. The growth in sales is explained by a 28.2% increase in sales volumes and a 74.4% increase in milk prices. Milk prices rallied to 0.36 USD/liter driven by: (i) a significant decrease in Argentina’s milk supply in 2017 as a result of excess rains during January and February which negatively affected cow comfort and access to feed; and (ii) rising international powder milk prices. As a result, Adjusted EBIT in the quarter was $2.0 million, marking a 1,545.2% increase year-over-year. All Other Segments All Other Segments - Highlights metric 1Q17 1Q16 Chg% Gross Sales $thousands 171 266 (35.7%) Adjusted EBITDA $thousands 121 285 (57.5%) Adjusted EBIT $thousands 91 232 (60.8%) All Other Segments encompasses our cattle and coffee operations. Our cattle segment consists of pasture land that is not suitable for crop production due to soil quality and as a result is leased to third parties for cattle grazing activities. Adjusted EBIT for All Other Segment during 1Q17 was $0.1 million, compared to $0.2 in 1Q16. 10

Land transformation business Land transformation - Highlights metric 1Q17 1Q16 Chg% Adjusted EBITDA $thousands - - -% Adjusted EBIT $thousands - - -% Land sold Hectares - - -% There were no farm sales during 1Q17 and 1Q16. 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, especially 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 land transformation activities and allocate its capital to other farms or projects with higher risk-adjusted returns, thereby enhancing return on invested capital. 11

Sugar, Ethanol & Energy Business Operational Performance Sugar, Ethanol & Energy - Selected Information metric 1Q17 1Q16 Chg% Milling Sugarcane Milled tons 1,460,668 1,504,053 (2.9%) Own Cane tons 1,238,748 1,449,457 (14.5%) Third Party Cane tons 221,920 54,596 306.5% Production Sugar tons 59,684 61,337 (3%) Ethanol M3 61,081 60,211 1% Hydrous Ethanol M3 40,819 41,592 (2%) Anhydrous Ethanol M3 20,263 18,619 9% TRS Equivalent Produced tons 166,247 166,396 (0.1%) Sugar mix in production 38% 39% (3%) Ethanol mix in production 62% 61% 2% Energy Exported (sold to grid) MWh 104,969 67,987 54.4% Cogen efficiency (KWh sold per ton crushed) KWh/ton 71.9 45.2 59.0% Agricultural Metrics Harvested area Hectares 13,166 14,146 (6.9%) Yield tons/hectare 94.1 102.3 (8.0%) TRS content kg/ton 110.0 107.2 2.6% TRS per hectare kg/hectare 10,353 10,965 (5.6%) Mechanized harvest% 99.9% 99.7% 0.3% Area Sugarcane Plantation hectares 136,384 130,637 4.4% Expansion & Renewal Area hectares 5,513 3,673 50.1% Rains in our cluster in Mato Grosso do Sul during November 2016 through March 2017 were 25% below the 10-year average. Therefore, we decided to fine-tune our harvest schedule in order to maximize sugarcane productivity throughout the year. As a result, we decided to slowdown the pace of crushing during the first quarter, and only crush: (i) our own sugarcane that has grown between 16-18 months (“cana de dois veroes”); and (ii) sugarcane purchased from third parties. This strategy will allow our traditional 12-month sugarcane to grow an additional 2 or 3 months, and benefit from normalized rains during March and April. At the same time, any down time was used to anticipate “off-season” maintenance of industrial equipment, agricultural machinery and most importantly sugarcane replanting. Despite our decision to decelerate the milling pace, we were able to crush a total of 1.5 million tons during 1Q17, essentially in line year-over-year. In terms of third-party sugarcane, we were able to find attractive opportunities to purchase sugarcane from neighboring mills and farmers at very competitive prices. Purchases of third-party sugarcane reached 221.9 thousand tons, 306.5% higher year-over-year. In spite of dry weather during summer months, sugarcane yields during the quarter reached 94.1 tons/ha, significantly above the 5-year average yield for Brazil’s center-south region. This is explained by our focus on 12

enhancing sugarcane quality and treatment. Yields fell 8.0% compared to our yields in 1Q16 as a result of above average rainfalls during November 2015 through February 2016. In terms of sugar content, TRS during the quarter increased to 110.0 kg/ton, 2.6% higher than 1Q16. Product mix during 1Q17 was slanted 62% towards ethanol and 38% sugar. This is mainly explained by the quality of sugarcane during summer, which is more suitable for producing ethanol. In addition, we obtain important tax benefits for our ethanol sales. We produced 59,684 tons of sugar and 61,081 m3 of ethanol. Our cogeneration efficiency ratio was 71.9K KWh per ton, an all-time record and 59.0% higher year-over-year. This was primarily achieved by burning a stockpile of bagasse that was carried over from last year as we expected energy prices to increase as a result of the low level of rains recorded during the last quarter of 2016. As of March 31, 2017, the size of our sugarcane plantation was 136,384 hectares, representing a 4.4% growth year-over-year. Sugarcane planting continues to be a key strategy to supply our mills with quality raw material at low cost. During 1Q17 we planted a total of 5,513 hectares of sugarcane. Of this total area, 1,793 hectares correspond to expansion areas. These hectares are related to the expansion of our cluster, which we announced in 4Q16. The balance corresponds to areas planted to renew old plantations with newer and high-yielding sugarcane, thus allowing us to maintain the productivity of our plantation. Financial Performance Sugar, Ethanol & Energy - Highlights $thousands 1Q17 1Q16 Chg% Net Sales (1) 104,422 69,296 50.7% Margin on Manufacturing and Agricultural Act. Before Opex 21,724 20,746 4.7% Adjusted EBITDA 30,264 22,088 37.0% Adjusted EBITDA Margin 29.0% 31.9% (9.1%) Adjusted EBITDA Margin (net of third party commercialization) 33.2% 37.4% (11.5%) (1) Net Sales are calculated as Gross Sales net of sales taxes. Net sales in 1Q17 reached $104.4 million, 50.7% above 1Q16. The increase in net sales was driven by the combination of (i) higher average realized selling prices for sugar, ethanol and energy, which increased 57.9%, 18.5%; and 27.0% year-over-year, respectively; and (ii) higher sugar, ethanol and energy sales volumes. The growth in revenues was partially offset by (i) higher production costs; and (ii) a $2.7 million loss from Changes in Fair Value of Agricultural Produce for our sugarcane plantation; resulting in a 4.7% increase in our Margin on Manufacturing and Agricultural Activities. Adjusted EBITDA during 1Q17 reached $30.3 million, $8.2 million or 37.0% higher than 1Q16. In addition to all the positive and negative drivers described above, Adjusted EBITDA was boosted by a $14.2 million gain from the mark-to-market effect of our sugar derivative hedge position. As of March 31, 2017, we had 368 thousand tons of sugar hedged at an average price of 19.3 US cents/lb. In 1Q17, we engaged in the commercialization of 27,863 tons of sugar from third parties as well as 22,672 MWh of energy. Although these transactions contribute positively to our overall profitability, EBITDA margins 13

for these transactions are considerably lower than the margins from core production. Adjusted EBITDA margin net of third party commercialization reached 33.2%, 418 bps above reported margin. 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) 1Q17 1Q16 Chg% 1Q17 1Q16 Chg% 1Q17 1Q16 Chg% Sugar (tons)(2) 46,878 28,179 66.4% 106,169 100,751 5.4% 442 280 57.9% Ethanol (cubic meters) 51,931 38,783 33.9% 94,880 83,947 13.0% 547 462 18.5% Energy (Mwh)(3) 5,612 2,335 140.4% 125,670 66,386 89.3% 45 35 27.0% TOTAL 104,422 69,296 50.7% 1) Net Sales are calculated as Gross Sales net of ICMS, PIS, CONFINS, INSS and IPI taxes. Sugar sales volumes grew 5.4% year-over-year, reaching 106,169 tons. This increase was achieved despite (i) lower sugarcane crushing and sugar production mix; and (ii) lower third party sales. Our average realized sugar price during the quarter was $442 per ton, marking a 57.9% increase compared to 1Q16, which resulted in a 66.4% increase in net sales. Ethanol sales volumes increased 13.0% in 1Q17 compared to 1Q16. Average selling prices in USD in 1Q17 were 18.5% higher than 1Q16, resulting in an 33.9% increase in net sales. In the case of energy, sales volumes grew 89.3% year-over-year mainly as a result of our strategy to stockpile bagasse in December 2016 and burn it in 1Q17 as we expected higher energy prices. Average energy prices during 1Q17 reached 45 USD/MWh, 27.0% higher year-over-year, resulting in a 140.4% increase in net sales. As a result of below average rains in the south of Brazil during the first months of the year, spot energy prices have been rallying, reaching over 350 BRL/MWh in April. We expect prices to remain strong throughout the year. Sugar, Ethanol & Energy - Total Production Costs $thousands 1Q17 1Q16 Chg% Industrial costs 7,007 5,678 23.4% Agricultrual costs 36,533 23,459 55.7% Harvest costs 19,718 15,587 26.5% Cane from 3rd parties 5,239 1,096 377.9% Leasing costs 4,557 4,137 10.1% Maintenance costs 7,019 2,639 166.0% Total Production Costs 43,540 29,138 49.4% Total producton costs per ton of sugarcane crushed (USD/ton) 30 19 53.9% Total producton costs per ton of sugarcane crushed (BRL/ton) 95 76 24.3% As shown in the table above, production costs per ton of sugarcane crushed during 1Q17 reached 30 USD/ton, marking a 53.9% increase compared to 1Q16. This is mainly explained by: (i) the appreciation of the Brazilian Real, which has increased costs in dollar terms; (ii) a 377.9% increase in third-party sugarcane purchases, driven by our strategy to postpone the harvest of our own cane and maximize milling of cane from suppliers coupled with higher sugarcane prices (CONSECANA index); (iii) an increase in industrial costs 14

mainly driven by the increase in CONSECANA prices; and (iv) the impact of inflation cost adjustments, mainly related to labor. We expect unitary production costs to decrease as the pace of the harvest accelerates and utilization rates reach full capacity. Sugar, Ethanol & Energy - Changes in Fair Value $thousands 1Q17 1Q16 Chg% Changes in FV Harvested Sugarcane (Agricultural Produce) 7,406 3,891 90.3% Changes in FV Unharvested Sugarcane (10,084) (3,077) (227.8%) Sugarcane Valuation DCF as of current period (USD) 81,406 74,127 9.8% Sugarcane Valuation DCF as of current period (USD/ha) 603 591 2.1% Sugarcane Valuation DCF as of last period (USD) 82,380 59,077 39.4% Sugarcane Valuation DCF as of last period (USD/ha) 616 470 31.1% Total Changes in Fair Value (2,678) 814 n.a The table above shows the breakdown of Changes in Fair Value of our sugarcane plantation. Changes in Fair Value of harvested sugarcane or “agricultural produce” reached $7.4 million in 1Q17, $3.5 million higher than the previous quarter. The increase is explained primarily by the increase in both sugar and ethanol prices, which increase the price of sugarcane according to the CONSECANA price formula. Harvested sugarcane is transferred from our farms to the mill at the CONSECANA price index. This was partially offset by the increase in agricultural production costs per ton of sugarcane harvested as explained in the table above. Changes in fair value of unharvested sugarcane (cane growing on the fields and expected to be harvested over the next 12-months) in 1Q17 was a loss of $10.1 million. This is primarily explained by: (i) lower projected sugar prices for the next 12-months; and (ii) the appreciation of the Brazilian Real, which results in lower sugar and sugarcane prices in local currency. These variables were partially offset by (iii) higher expected yields due to lower crop risk as we reach harvest time; and (iv) slightly lower projected production costs. Total Changes in Fair Value of Biological Assets during 1Q17 was a loss of $2.7 million, compared to a 0.8 million gain in 1Q16. Corporate Expenses Corporate Expenses $thousands 1Q17 1Q16 Chg% Corporate Expenses (5,158) (5,079) (1.6%) Adecoagro’s Corporate expenses include items that have not been allocated to a specific business segment, such as executive officers and headquarters staff, certain professional fees, travel expenses, and office lease 15

expenses, among others. As shown on the tables above corporate expenses in 1Q17 amounted to $5.2 million, essentially in line with the same period last year. Other Operating Income Other Operating Income $thousands 1Q17 1Q16 Chg% Gain / (Loss) from commodity derivative financial instruments 16,274 (170) -% (Loss) from forward contracts 7 (63) (111.1%) Gain from disposal of other property items (557) 134 (515.7%) Gain from disposal of financial assets (3,247) - -% Other 795 157 406.4% Total 13,272 58 22,782.8% Other Operating Income in 1Q17 marked a $13.3 million gain compared to a virtually nil in 1Q16. The increase is fully explained by a $16.3 million gain derived from the mark-to-market effect of our commodity derivatives hedge position, particularly related to sugar. Financial Results Financial Results $thousands 1Q17 1Q16 Chg% Interest Expenses, net (11,831) (7,530) (57.1%) Cash Flow Hedge - Transfer from Equity 666 (4,975) 113.4% FX (Losses), net (3,684) (9,862) 62.6% Gain from derivative financial Instruments (1,703) 1,155 (247.4%) Taxes (517) (513) (0.8%) Other Expenses, net (261) (2,843) 90.8% Total Financial Results (17,330) (24,568) 29.5% Our net financial results in 1Q17 show a loss of $17.3 million, compared to a loss of $24.6 million in 1Q16. The financial results loss is primarily composed of: (i) Interest expense: our net interest expense in 1Q17 was $11.6 million, 53.5% or $4.0 million higher year-over-year explained by: (a) the appreciation of the Brazilian Real and the Argentine Peso during the quarter; and (b) a slight increase in the cost of our debt compared to 1Q16. (ii) Foreign exchange losses (composed of “Cash Flow Hedge – Transfer from Equity”(1) and “Fx Gain/Loss” line items) that reflect the impact of foreign exchange variations on our dollar denominated assets and liabilities. Foreign exchange losses stood at $3.0 million in 1Q17 compared to a $14.8 million loss in 1Q16. The improvement in foreign exchange results is explained by the appreciation of the Argentinian Peso and the Brazilian Real throughout the quarter, compared to a devaluation during 1Q16. 16

Commodity Hedging Adecoagro’s financial performance is affected by the volatile price environment inherent to agricultural commodities. The company uses forward contracts and derivative instruments to mitigate swings in commodity prices by locking-in margins and stabilizing profits and cash flow. The table below shows the average selling prices of our hedged production volumes, including volumes that have already been invoiced and delivered, forward contracts with fixed-price and volumes hedged through derivative instruments. Commodity Hedge Position - as of March 31, 2017 Consolidated Hedge Position Farming Avg. FAS Price CBOT FOB Volume (1) USD/Ton USD/Bu 2015/2016 Harvest season Soybeans 220,208 266.4 1,028.2 Corn 235,715 163.7 405.6 2016/2017 Harvest season Soybeans 115,560 234.4 927.0 Corn 84,300 186.5 481.4 2017/2018 Harvest season Soybeans - n.a. n.a. Corn 11,684 154.0 392.8 Consolidated Hedge Position Sugar, Ethanol & Energy Avg. FOB Price ICE FOB Volume (1) USD/Unit Cents/Lb 2016/2017 Harvest season Sugar (tons) 367,500 423.6 19.2 Ethanol (m3) 428,049 493.8 n.a Energy (MW/h) (2) 744,294 57.3 n.a 2017/2018 Harvest season Sugar (tons) 154,737 407.2 18.5 Ethanol (m3) 26,489 566 n.a Energy (MW/h) (2) 512,789 61.0 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 3.20 (1) Ef f ectiv e July 1, 2014, Adecoagro f ormally documented and designated cash f low hedging relationships to hedge the f oreign exc hange 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 f oreign currency f orward c ontracts. Cash f low hedge accounting permits that gains and losses arising f rom the ef f ect of changes in f oreign currency exchange rates on deriv ativ e and non-deriv ativ e hedging instruments not be immediately recognized in prof it or loss, but be reclassif ied f rom equity to prof it or loss in the same periods during which the f uture sales occur, thus allowing f or a more appropriate presentation of the results f or the period ref lecting Adecoagro's Risk Management Policy . 17

Indebtedness Net Debt Breakdown $thousands 1Q17 4Q16 Chg% 1Q16 Chg% Farming 152,849 102,097 49.7% 116,993 30.6% Short term Debt 95,527 44,546 114.4% 101,538 (5.9%) Long term Debt 57,322 57,551 (0.4%) 15,455 270.9% Sugar, Ethanol & Energy 642,981 533,298 20.6% 677,891 (5.1%) Short term Debt 134,686 160,545 (16.1%) 181,642 (25.9%) Long term Debt 508,295 372,753 36.4% 496,250 2.4% Total Short term Debt 230,213 205,091 12.2% 283,179 (18.7%) Total Long term Debt 565,617 430,304 31.4% 511,705 10.5% Gross Debt 795,830 635,395 25.2% 794,884 0.1% Cash & Equivalents 231,321 158,568 45.9% 223,688 3.4% Net Debt 564,509 476,827 18.4% 571,196 (1.2%) EOP Net Debt / Adj. EBITDA LTM 1.88x 1.6x 17.8% 2.61x (27.8%) Adecoagro’s net debt as of 1Q17 was $564.5 million, 1.2% lower than 1Q16 and 18.4% higher than 4Q16. As of March 31, 2017, outstanding debt related to our Farming business was $152.8 million, increasing 49.7% or $50.8 million quarter-over-quarter. From a seasonality point of view, the first quarter has the highest working capital requirements, since all of our crops are planted and most costs incurred, but only a small amount of the crops are harvested and sold. As we continue harvesting throughout the second and third quarter we expect to reduce working capital invested and debt. On a year-over-year basis, debt increased by 30.6% or $35.9 million. In the Sugar and Ethanol business, debt as of March 31, 2017 increased by 20.6% or $109.7 million quarter-over-quarter. This increase is related to working capital seasonality, since during the first quarter we usually incur a large proportion of crop treatment expenses and maintenance capex related to sugarcane replanting and reparations of industrial equipment and machinery. Cash and equivalents as of March 31, 2017, stood at $231.3 million, 45.9% higher than 4Q16. Year-over-year cash and cash equivalents increased by 3.4%. The charts depicted below show our debt profile on a consolidated basis. As of March 31, 2017, 71.1% of our debt was long term and 28.9% short term. Our debt currency breakdown stands 24.8% in Brazilian Reals, 74.6% in US dollars and 0.6% in Argentine pesos. 29% 25% Short Term BRL Long Term 75% USD 71% 18

Capital Expenditures & Investments Capital Expenditures & Investments $thousands 1Q17 1Q16 Chg% Farming & Land Transformation 3,694 1,185 211.8% Expansion 2,467 807 205.9% Maintenance 1,227 378 224.5% Sugar, Ethanol & Energy 54,843 28,729 90.9% Maintenance 45,289 20,437 121.6% Planting 12,659 6,723 88.3% Industrial & Agricultural Machinery 32,630 13,714 137.9% Expansion 9,554 8,292 15.2% Planting 5,608 4,503 24.5% Industrial & Agricultural Machinery 3,947 3,789 4.1% Total 58,537 29,914 95.7% Adecoagro’s capital expenditures during 1Q17 totaled $58.5 million, 95.7% higher compared to 1Q16. The Sugar, Ethanol and Energy business accounted for 94% or $54.8 million of total capex. Expansion capex reached $9.6 million, mainly related to new sugarcane hectares planted to supply our growing industrial capacity. Maintenance capex increased by 121.6%, reaching $45.3 million, primarily explained by our decision to slowdown sugarcane milling during the quarter, and at the same time accelerate the annual maintenance program both at the agricultural and industrial level. In the case of sugarcane replanting, we renewed 5,513 hectares during 1Q17, 20% higher compared to the same period of last year. Farming and Land transformation expenditures accounted for 6% or $2.5 million of total capex in 1Q17. The principal investment corresponds to the dairy business, where we are currently building a bio-digester to co-generate electricity from cow manure. We believe this project will enhance the sustainability of our free-stall dairy operation, increase our returns through the sales of excess power to the grid and at the same time reduce operational risks related to energy supply. 19

Inventories End of Period Inventories Volume thousand $ Product Metric 1Q17 1Q16% Chg 1Q17 1Q16% Chg Soybean tons 52,154 24,746 110.8% 3,562 5,360 (33.5%) Corn (1) tons 27,675 19,534 41.7% 3,589 2,474 45.0% Wheat (2) tons 29,848 53,454 (44.2%) 3,662 6,311 (42.0%) Sunflower tons 7,645 4,095 86.7% 2,790 1,110 151.3% Cotton lint tons - 691 (100.0%) - 646 (100.0%) Rough Rice(3) tons 29,571 32,938 (10.2%) 6,153 6,034 2.0% Sugar tons 30,434 16,009 90.1% 8,615 3,231 166.6% Ethanol m3 44,623 20,340 119.4% 21,812 7,914 175.6% Total 221,949 171,808 29.2% 50,183 33,082 51.7% (1) Includes sorghum. (2) Includes barley. (3) Expressed in rough rice equivalent Variations in inventory levels between 1Q17 and 1Q16 are attributable to (i) changes in production volumes resulting from changes in planted area, in production mix between different crops and in yields obtained, (ii) different percentage of area harvested during the period, and (iii) changes in commercial strategy or sales for each product. 20

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. 21

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 Net Debt Net Debt to Adjusted EBITDA In this section, we provide an explanation and a reconciliation of each of our non-IFRS financial measures to their most directly comparable IFRS measures. 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 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), 22

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 measure 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 24. 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 1Q17 1Q16 Net Debt 564,509 476,827 Cash and cash equivalents 231,321 158,568 Total Borrowings 795,830 635,395 23

Adjusted EBITDA & Adjusted EBITDA Reconciliation to Profit/Loss - 1Q17 Sugar, Ethanol & Land $thousands Crops Rice Dairy Others Farming Corporate Total Energy Transformation Sales of goods and services rendered 25,196 19,260 10,812 171 55,439 110,652 - - 166,091 Cost of goods sold and services rendered (25,136) (17,436) (10,485) (56) (53,113) (86,249) - - (139,362) Initial recog. and changes in FV of BA and agricultural produce 11,897 6,022 1,941 184 20,044 (2,679) - - 17,365 Gain from changes in NRV of agricultural produce after harvest (227) - - - (227) - - - (227) Margin on Manufacturing and Agricultural Act. Before Opex 11,730 7,846 2,268 299 22,143 21,724 - - 43,867 General and administrative expenses (673) (1,125) (239) (43) (2,080) (6,865) - (5,072) (14,017) Selling expenses (1,032) (3,085) (239) (4) (4,360) (11,606) - (48) (16,014) Other operating income, net 2,160 174 250 (161) 2,423 10,887 - (38) 13,272 Share of gain/(loss) of joint ventures - - - - - - - - - Profit from Operations Before Financing and Taxation 12,185 3,810 2,040 91 18,126 14,140 - (5,158) 27,108 Reserve from the sale of minority interests in subsidiaries - - - - - - - - - Adjusted EBIT 12,185 3,810 2,040 91 18,126 14,140 - (5,158) 27,108 (-) Depreciation and Amortization 335 922 238 30 1,525 16,124 - - 17,649 Adjusted EBITDA 12,520 4,732 2,278 121 19,651 30,264 - (5,158) 44,757 Reconciliation to Profit/(Loss) Adjusted EBITDA 44,757 (+) Depreciation (17,649) (+) Financial result, net (17,330) (+) Income Tax (Charge)/Benefit (3,811) Profit/(Loss) for the Period 5,967 Adjusted EBITDA & Adjusted EBITDA Reconciliation to Profit/Loss - 1Q16 Sugar, Ethanol & Land $thousands Crops Rice Dairy Others Farming Corporate Total Energy Transformation Sales of goods and services rendered 21,949 20,549 5,169 266 47,933 73,551 - - 121,484 Cost of goods sold and services rendered (21,805) (18,414) (5,153) (32) (45,404) (53,619) - - (99,023) Initial recog. and changes in FV of BA and agricultural produce 16,040 8,479 434 66 25,019 814 - - 25,833 Gain from changes in NRV of agricultural produce after harvest 2,659 - - - 2,659 - - - 2,659 Margin on Manufacturing and Agricultural Act. Before Opex 18,843 10,614 450 300 30,207 20,746 - - 50,953 General and administrative expenses (575) (626) (256) (58) (1,515) (3,666) - (5,123) (10,304) Selling expenses (793) (2,164) (101) (11) (3,069) (7,942) - (25) (11,036) Other operating income, net (823) 198 31 1 (593) 582 - 69 58 Share of gain/(loss) of joint ventures - - - - - - - - - Profit from Operations Before Financing and Taxation 16,652 8,022 124 232 25,030 9,720 - (5,079) 29,671 Reserve from the sale of minority interests in subsidiaries - - - - - - - - - Adjusted EBIT 16,652 8,022 124 232 25,030 9,720 - (5,079) 29,671 (-) Depreciation and Amortization 323 555 243 53 1,174 12,368 - - 13,542 Adjusted EBITDA 16,975 8,577 367 285 26,204 22,088 - (5,079) 43,213 Reconciliation to Profit/(Loss) Adjusted EBITDA 43,213 (+) Depreciation (13,542) (+) Financial result, net (24,568) (+) Income Tax (Charge)/Benefit (2,351) Profit/(Loss) for the Period 2,752 24

Condensed Consolidated Interim Financial Statements Condensed Consolidated Interim Statement of Income Statement of Income $thousands 1Q17 1Q16 Chg% Sales of goods and services rendered 166,091 121,484 36.7% Cost of goods sold and services rendered (139,362) (99,023) 40.7% Initial recognition and Changes in fair value of biological assets and agricultural produce 17,365 25,833 (32.8%) Changes in net realizable value of agricultural produce after harvest (227) 2,659 (108.5%) Margin on Manufacturing and Agricultural Activities Before Operating Expenses 43,867 50,953 -13.9% General and administrative expenses (14,017) (10,304) 36.0% Selling expenses (16,014) (11,036) -% Other operating income, net 13,272 58 n.a Share of loss of joint ventures - - n.a Profit from Operations Before Financing and Taxation 27,108 29,671 (8.6%) Finance income 2,112 4,145 (49.0%) Finance costs (19,442) (28,713) (32.3%) Financial results, net (17,330) (24,568) (29.5%) (Loss) / Profit Before Income Tax 9,778 5,103 91.6% Income tax (Benefit) / Expense (3,811) (2,351) 62.1% (Loss) / Profit for the Year 5,967 2,752 116.8% 25

Condensed Consolidated Interim Statement of Cash Flow Statement of Cash Flows $thousands 1Q17 1Q16 Chg% Cash flows from operating activities: Profit for the period 5,967 2,752 116.8% Adjustments for : Income tax benefit 3,811 2,351 62.1% Depreciation 17,458 13,429 30.0% Amortization 191 113 69.0% Gain from of disposal of other property items 557 (134) (515.7%) Equity settled share-based compensation granted 1,429 1,195 19.6% Loss/(Gain) from derivative financial instruments and forwards (14,571) (922) 1,480.4% Interest and other expense, net 12,024 8,787 36.8% Initial recognition and changes in fair value of non harvested biological (5,843) (20,174) (71.0%) assets (unrealized) Changes in net realizable value of agricultural produce after harvest 174 704 (75.3%) (unrealized) Provision and allowances 68 1,722 (96.1%) Share of loss from joint venture - - -Foreign exchange gains, net 3,684 9,862 (62.6%) Cash flow hedge – transfer from equity (666) 4,975 n.a Discontinued operations - - - Subtotal 24,283 24,660 (1.5%) Changes in operating assets and liabilities: Decrease in trade and other receivables (20,864) (28,654) n.a (Increase) in inventories 2,276 (15,072) (115.1%) Investment in other companies - - Decrease in biological assets 2,616 17,742 (85.3%) Decrease in other assets (17) (51) n.a (Increase) in derivative financial instruments 8,066 (4,426) n.a Increase/(Decrease) in trade and other payables (28,522) 9,437 (402.2%) (Decrease)/Increase in payroll and social security liabilities 3,860 2,303 67.6% Increase/(Decrease) in provisions for other liabilities 111 514 (78.4%) Net cash generated in operating activities before interest and taxes paid (8,191) 6,453 (226.9%) Income tax paid (278) (66) - Net cash generated from operating activities (8,469) 6,387 (232.6%) Cash flows from investing activities: Continuing operations: Purchases of property, plant and equipment (58,535) (29,922) 95.6% Purchases of intangible assets (101) (664) (84.8%) Interest received 1,422 2,796 (49.1%) Proceeds from sale of property, plant and equipment 222 153 n.a Net cash used in investing activities (56,992) (27,637) 106.2% Cash flows from financing activities: Proceeds from equity settled share-based compensation exercised - 152 -Proceeds from long-term borrowings 149,801 40,167 272.9% Payments of long-term borrowings (45,567) (27,200) 67.5% Net increase in short-term borrowings 50,583 38,985 n.a Interest paid (10,046) (8,765) 14.6% Dividends paid to non-controlling interest (659) - n.a Purchase of own shares (1,230) - n.a Payment of derivatives financial instruments (2,704) - n.a Net cash generated from financing activities 140,178 43,339 223.4% Net increase/(decrease) in cash and cash equivalents 74,717 22,089 238.3% Cash and cash equivalents at beginning of period 158,568 198,894 (20.3%) Effect of exchange rate changes on cash and cash equivalents (1,964) 2,705 n.a Cash and cash equivalents at end of period 231,321 223,688 3.4% 26

Condensed Consolidated Interim Balance Sheet Statement of Financial Position $thousands March 31, 2017 December 31, 2016 Chg% ASSETS Non-Current Assets Property, plant and equipment 872,816 802,608 8.7% Investment property 2,752 2,666 3.2% Intangible assets 17,640 17,252 2.2% Biological assets 8,939 8,516 5.0% Investments in joint ventures - - n.a Deferred income tax assets 32,247 38,586 (16.4%) Trade and other receivables 20,279 17,412 16.5% Other assets 572 566 n.a Total Non-Current Assets 955,245 887,606 7.6% Current Assets Biological assets 138,943 136,888 1.5% Inventories 118,431 111,754 6.0% Trade and other receivables 179,975 157,528 14.2% Derivative financial instruments 12,546 3,398 269.2% Other assets 46 24 91.7% Cash and cash equivalents 231,321 158,568 Total Current Assets 681,262 568,160 19.9% TOTAL ASSETS 1,636,507 1,455,766 12.4% SHAREHOLDERS EQUITY Capital and reserves attributable to equity holders of the parent Share capital 183,573 183,573 -Share premium 936,191 937,250 (0.1%) Cumulative translation adjustment (512,862) (527,364) (2.7%) Equity-settled compensation 18,647 17,218 8.3% Cash flow hedge (25,907) (37,299) (30.5%) Other reserves - - n.a Treasury shares (2,030) (1,859) (104.9%) Reserve from the sale of minority interests in subsidiaries 41,574 41,574 n.a Retained earnings 55,989 50,998 9.8% Equity attributable to equity holders of the parent 695,175 664,091 4.7% Non controlling interest 7,109 7,582 (6.2%) TOTAL SHAREHOLDERS EQUITY 702,284 671,673 4.6% LIABILITIES Non-Current Liabilities Trade and other payables 1,442 1,427 1.1% Borrowings 565,607 430,304 31.4% Deferred income tax liabilities 17,207 14,689 17.1% Payroll and social security liabilities 1,371 1,235 11.0% Derivatives financial instruments 978 662 Provisions for other liabilities 3,648 3,299 10.6% Total Non-Current Liabilities 590,253 451,616 30.7% Current Liabilities Trade and other payables 74,975 92,158 (18.6%) Current income tax liabilities 2,164 1,387 56.0% Payroll and social security liabilities 31,378 26,844 16.9% Borrowings 230,213 205,092 12.2% Derivative financial instruments 4,707 6,406 (26.5%) Provisions for other liabilities 533 590 (9.7%) Total Current Liabilities 343,970 332,477 3.5% TOTAL LIABILITIES 934,223 784,093 19.1% TOTAL SHAREHOLDERS EQUITY AND LIABILITIES 1,636,507 1,455,766 12.4% 27